The SEC wrote a 136-page indictment against Binance, leading to a massive drop in BNB and then Coinbase was also affected. A variety of cryptocurrencies such as ADA, SOL, etc. are all understood by the SEC as securities, this is the main cause of the major decline in the cryptocurrency market. Where will Binance go from there? Is the future of the cryptocurrency market post-regulation alive? Is there still a chance to become rich quickly?
Binance is under scrutiny, regulation is approaching.
It is clear that this SEC report shows that Binance abused user capital, interfered in the market and other violations, which is a premise for upcoming regulation. The SEC considered all mainstream public-chain cryptocurrencies except Bitcoin and Ethereum to be securities, and concluded that Binance violated US securities laws. In short: you are all securities, and I will manage them.
What is the current influence of public chains?
For Ethereum ecological projects, the impact is huge, especially for Matic. Among public chains accused of being securities, when combining indicators such as technology, coin distribution, degree of decentralization, and on-chain management progress, the risks of Solana and Polygon are quite large. Solana's risks are even greater than Polygon's. Because there are many technological problems and the combination of SBF and venture capitalists... In short, fraudulent projects will continue to be punished. In addition, new projects are most affected, because they have not accumulated much experience and cannot withstand the impact.
Do small people still have a chance?
Unfortunately, once regulations are applied, the cryptocurrency market will form a relatively stable class division, and retail players will gradually leave the market. If we want to become rich quickly, we no longer have a chance. Therefore, in the meantime, we should continue to look for good projects, sneak away and grab the last possible opportunity before regulations are applied.
Future prospects of the cryptocurrency market
It can be seen that there are currently no outstanding projects, it is difficult to develop, and the next growth cycle is not a new project. Of course, projects with strong community bases, highly valued by individuals, are resistant to fragility.
Overall, from a long-term perspective, it is good news for the crypto market, weeding out weak traders and scam projects and then possibly the real start of market growth.
I will personally deploy more capital into crypto from today
Reason:
• SEC is running out of CEX to file lawsuits
• Bad news no longer affects the market (If the Fuds of the past days happened in 2022, the market would collapse by 30-60%). Now everything is no longer affected strongly, only dumping 6-10%.
• Jim Cramer is out of crypto
• $BTC has strong support at $25K
Altcoins have been lagging for months and some of them are at pretty good cumulative buy levels.
And the long-term risk/reward here is too good to ignore.
In case $BTC returns to the $20,000 level, I will continue to increase my crypto long position.
Regardless, I believe many people will regret not buying more crypto at these prices.
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