Following most cryptos plummeting this week, the markets have begun slowly recovering. Crypto has experienced one of its worst weeks in recent months, losing over $100 billion in the last seven days. However, some prices have begun slowly recovering today.
The crash was caused by the SEC issuing a class action lawsuit against Coinbase, Binance and other crypto exchanges that serve American citizens. The exchanges were accused of selling unregistered securities, and according to Reuters, complaints against Binance also include inflating trading volume, diverting customer funds and improperly commingling assets.
Since the lawsuits were made public, many cryptos are down in the double-figure percentages, with staking-related tokens hit the hardest.
Binance coin, the native utility token to the Binance Smart Chain blockchain, has decreased by 23.35% in the past seven days. However, SUI, APTOS and SAND have been hit the hardest from the top 100 cryptos by market cap. SUI is down 37.68%, APTOS 36.27% and SAND 33.67%.
According to the lawsuit against Coinbase, there are an additional 13 tokens which the SEC now deems as securities; these are BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS, COTI, CHZ, FLOW, ICP, NEAR, VGX and NEXO.
However, while many cryptos are down over the past week, some have displayed resilience and have begun to recover recently.
Wall Street Memes
Despite the rest of the crypto markets being in turmoil, liquidity has continued to flow into the Wall Street Memes presale. After launching on 25 May, the presale has raised over $6.1 million, totalling an impressive $2 million in the past week alone.
Positive sentiment has soared surrounding the presale, mainly as there is less perceived downside risk since it is available at a discounted price.
A plethora of crypto analysts and YouTubers have hyped the presale recently. Earlier today, YouTuber My Financial Friend, with over $200K subscribers, covered the token, saying it is a killer project with massive potential.
Wall Street Memes has continued to perform in the crypto crash because its fundamentals have fared it a favourite with investors.
Wall Street Memes is a meme coin. However, it stands out from others since it was launched by an established online brand with over one million followers across all platforms. In his YouTube video, My Financial Friend highlights that the project has a lot of high-profile followers that would not usually follow a meme coin project.
The $WSM token is currently available to buy for $0.0283, but this is for a limited time, with its price incrementally increasing to $0.0337 by the end of the presale.
XRP plunged with the rest of the markets following the SEC’s lawsuit announcements. However, sentiment quickly shifted since XRP is already winning a case against the SEC for the same reason.
After the SEC’s announcement, XRP dropped from $0.54 to $0.48. However, the coin has been one of the best performers since, climbing back to $0.51. This puts XRP down just 3.69%, less than Bitcoin and most other cryptos.
Since the announcement, XRP has been popular among traders because its founders are currently in a legal battle with the SEC, following the SEC claiming XRP was a security in 2020.
XRP’s founding company, Ripple, was sued by the SEC in December 2020, but the case is moving towards its final stages, with Ripple likely to appear victorious.
If Ripple wins the case, XRP will be the only crypto proven not a security in court in the United States.
XRP is also displaying bullish signals on its price chart. As seen below, the crypto looks to form an inverse head and shoulders pattern, which is often followed by a breakout to the upside.
Another crypto traders are buying on the dip is AiDoge. Having just finished its presale, investors can purchase the token at its exchange listing price of $0.0000336 from the AiDoge website.
The initial exchange offering (IEO) is set to take place on 19 June 2023, and users can claim their tokens on the same day.
Like Wall Street Memes, AiDoge is a meme coin. However, AiDoge also carries the perk of providing utility to holders. AiDoge is an AI-powered platform that will enable users to generate crypto memes.
Users can stake their $Ai tokens in return for meme credits. Alternatively, they can purchase meme credits with $Ai. The great thing about this is that it could give the token long-term potential since it creates a stream of utility-driven demand.
Comparatively, many other meme coin prices are driven by hype, making them unsustainable and causing high volatility.
With the AiDoge IEO looming, the coin could present massive short-term potential. Previously, we have seen other bear market presales pump following their IEOs, such as Tamadoge, which surged 788% within seven days of its launch.
Another crypto which has held relatively well this week is Bitcoin. Currently down 4.76% in the week, Bitcoin has begun a slow climb upwards today, increasing 1.06% in the past 24 hours.
Bitcoin’s price may have held up better than other cryptos because the SEC rarely mention Bitcoin as a potential security. This is because Bitcoin is a Proof-of-Work crypto, serving as a means of payment and a store of value.
In contrast, the SEC is mainly targeting cryptos which look like companies selling shares in the form of tokens to raise money. The SEC uses case law from 1946 involving W. J. Howey Co to determine what a security is.
The case defined a security as “an investment of money in a common enterprise with profits to come solely from the efforts of others.”
Since Bitcoin is decentralised and open source, it is not deemed a security.
The Bitcoin chart below shows that the price has recently broken a key resistance level, and today’s bounce has created a double bottom in the same zone.
Considering the chart’s strength and the certainty that Bitcoin is not a security, we could see its price pump shortly.
Swissborg is a regulated crypto broker operating out of Switzerland. Although it is down 12% in the past week, Swissborg is up 0.51% today and has recovered yesterday’s dip.
Swissborg could be one of the best cryptos to buy at the minute because it has already attained regulatory certainty in the EU, so investors may be more inclined to purchase the platform’s native $CHSB token.
Currently, the US is in turmoil regarding crypto regulation. Although the SEC have recently sued Coinbase and Binance, the US Commodities Trading Futures Commission (CTFC) has also targeted Binance recently, with allegations of selling commodities without complying with US regulations.
The CTFC named Ethereum’s Ether a commodity, but this contradicts the SEC chair Gary Gensler, who has called ETH a se
urity on numerous occasions.
Overall, the regulatory climate in the US is up in the air. Meanwhile, the EU is pushing ahead with its Markets in Crypto-Assets regulatory framework, which will provide certainty on the EU’s stance on crypto assets.
Considering Swissborg is one of the EU’s most prominent crypto exchanges and that it is already regulated, it could become a more prominent player on the global scene looking ahead, potentially boosting the $CHSB price.