Cryptocurrency Crash Caused by a Tweet

On April 18, there was market news that the U.S. Department of the Treasury will charge several financial institutions with using cryptocurrencies for money laundering.

The news came from a popular Twitter account, FXHedge, which alerted a total of 122,700 followers. Tweets citing anonymous sources quickly went viral. Minutes after the tweet, crypto markets began to plummet.

As of 11:46, based on the 24-hour rise and fall, Bitcoin plummeted 17%, the largest intraday drop since February. Ethereum plummeted 20%, Binance Coin plummeted 17%, Ripple Coin plummeted 26%, Dogecoin plummeted 19%, Litecoin plummeted 28%, Wave Field plummeted 25%, and Grapefruit Coin plummeted 29%. As of press time, the decline in cryptocurrencies has decreased.

The cross-chain protocol Ren has launched the Ren Bridge 3.0 version, which supports the direct bridging of encapsulated assets to another chain: Golden Finance News, the cross-chain protocol Ren has launched the Ren Bridge 3.0 version, which supports the encapsulation of stablecoins and general-purpose tokens to other chains chain, and supports bridging existing encapsulation assets (ren ASSETS) from one chain to another without destroying the asset back to its original chain. This feature is planned to roll out gradually to allow time for testing and validating the security, after sufficient mainnet testing, renBCH, renDGB, renDOGE, renFIL, renZEC will be enabled and finally renBTC will be added. [2022/6/8 4:10:55]

Justin Sun: The listing of TRX ETN has innovatively opened up a compliance path for the industry: According to official sources, Justin Sun, founder of TRON and CEO of BitTorrent, said during a live broadcast: "Open up more than ten EU countries and markets at one time, The listing of TRX ETN has innovatively opened up a compliance path for the industry. Regarding the compliance of TRX, we have been in progress. For example, in the first quarter of this year, BITPoint Japan Japan Exchange has launched TRX and opened TRX/JPY trading pair. And this exchange is one of the earliest licensed digital asset exchanges in Japan, so TRX is a currency in the white list of the Japan Financial Services Agency. Recently, Huobi Japan has also launched TRX, from From Japan to Germany, from Germany to many sovereign countries, we will do our best to promote the major event of TRX compliance.” [2021/9/24 17:04:40]

The plunge of Bitcoin has also been trending on Weibo.

Voice | ViaBTC Yang Haipo: In the future, there will only be one public chain that will be accepted and used globally: On August 18th, ViaBTC founder Yang Haipo posted on Weibo that the bear market will not only kill air coins, but also kill blockchains with pseudo-demand project. The blockchain is essentially a decentralized distributed database, and its core value is centralization. Most blockchain projects are more suitable for centralized databases. The investment value of most so-called public chains will soon be falsified. In the future, only one public chain will win and be accepted and used globally. In some subdivided fields such as privacy coins, there will also be some blockchains that will survive. [2018/8/18]

When the cryptocurrency plummeted, as of 11:51, the cryptocurrency liquidation on the entire network reached 4.287 billion US dollars in the past hour, and more than 620,000 people liquidated their positions in the past 24 hours, with a liquidation volume of 5.579 billion US dollars. The move triggered at least $7.9 billion in liquidations, according to analytics tracker Bybt. The U.S. Treasury Department has previously charged individuals with money laundering using encrypted assets, in March 2020.

There are also users who have encountered temporary difficulties when placing orders. In response to this, the trading platform Binance responded that the order problem on the website has now been resolved.

Concerns about cryptocurrency regulation are growing. On April 16, according to the U.Today website, White House Press Secretary Jen Psaki said at a press conference last Thursday that Biden agrees with U.S. Treasury Secretary Yellen’s views on regulating cryptocurrencies. Yellen had called on lawmakers to "scale back" the use of cryptocurrencies during her nomination hearing in January. White House Press Secretary Jen Psaki also said that I think we really need to look at how to reduce the use of cryptocurrencies and make sure that the market does not launder money through these channels.

In February of this year, Yellen said that digital currencies may lead to faster and lower-cost payments, but many issues need to be studied, including consumer protection and money laundering. An "explosion of risks" related to digital markets, including the misuse of cryptocurrencies, is a growing problem.

Barron's Weekly commented that although Bitcoin has been born for a long time, it is still far from being popularized. The obstacles it faces include technical obstacles, price instability, tax policies, and governments do not want unregulated digital tokens to rob them of their monetary policy. Or financial regulatory dominance. Illegal uses of bitcoin also abound, including money laundering and tax evasion. Some governments have also taken crackdowns as a result.

In addition to regulatory concerns, there is also news that the CEO of Coinbase sold the company’s stock to cash out $290 million, and insiders have cashed out more than $4.6 billion.

According to Cointelegraph, according to data from the Capital Market Lab and documents on the Coinbase investor relations website, Coinbase CEO Brian Armstrong sold 749,999 shares in three transactions at different prices, totaling approximately $292 million. CFO Alesia Haas sold all 255,500 shares for $388.73, totaling approximately $99.32 million.

Founded in 2012, Coinbase is the largest cryptocurrency exchange in the United States. It was listed on Nasdaq just a few days ago. At present, Coinbase mainly trades 44 currencies such as Bitcoin and Ethereum.

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