2019 Bull Season: Altcoins Get Rekt’d, 1 Down 14 to Go?
- XRP, Cardano, Stellar, Dash, and IOTA still down over 92%
- VERI token dropped like a ton of bricks after SEC filed a lawsuit
- Risk of holding ICO tokens that could be tagged as unregistered securities
Bitcoin is down but altcoins are still not showing much activity. Crypto winter might be over but for altcoins, there seems to be no end in sight as many top cryptocurrencies like XRP, Cardano, Stellar, Dash, and IOTA are still down more than 92%.
The leading cryptocurrency enjoyed a bull run in the second quarter of 2019, up 185% YTD. However, since BTC broke out in April, Altcoins did exactly the opposite and went downhill as depicted in the chart shared by popular analyst Willy Woo.
"Shit runs downhill", 2019 bull season edition.
This is the performance of the the top 200 coins measured in satoshi value (performance against BTC).
Note alts got particularly rekted after BTC broke out on 1st Apr. pic.twitter.com/lN3Jdnsfni
— Willy Woo (@woonomic) August 13, 2019
Despite losing a major chunk of their value, altcoins aren’t done falling. As for the alt season, it is hard to know if we will even get to see one this time as while some believe only particular altcoins will be able to rally, others don’t see any uptrend for them in the future at all.
— moon (@MoonOverlord) August 13, 2019
Meanwhile, regulators have crackdown on one of these altcoins. The SEC has filed a lawsuit in federal court to freeze the assets of Reggie Middleton, organizer of Veritaseum (VERI), for conducting a fraudulent and illegal $14.8 million initial coin offering (ICO) in 2017.
The price of VERI token dropped like a ton of bricks, going from $17 to $4, in less than 12 hours.
“This is the risk you take by holding ICO tokens that could be tagged as unregistered securities, even if you're just looking for a quick trade,” said Jake Chervinky, General Counsel at Compound Finance.
This crackdown has one of the altcoins from “Fifteen dead cryptocurrency predictions,” by Nic Carter, Coin Metrics co-founder and board chairman, taking the dagger.
So the SEC finally plunged the dagger into one of the most comically stupid ICOs to ever exist, Veritaseum. We all knew it was coming, I was just too optimistic on the timing. It was on my list of coins that I thought would die in 2018https://t.co/74JCuUj2zg
— nic carter (@nic__carter) August 13, 2019
The other fourteen in this list created in January 2018, are Railblocks (Nano), Iota, Verge, Dash, EOS, Bitcoin Gold, Bitconnect, NEM, Tether, Hshare, Augur, Electroneum, Storj, and Iconomi.
It’s yet to be known which altcoins will emerge as the winner and which ones will be dead, however, Binance’s native token BNB, Chainlink, and recently Litecoin has shown promising growth and price action.