Ether Plunges After SEC Mentions 'Dozens' of Investigations Into ICOs

By Edward Leano, Christian Post Contributor Tuesday, March 20, 2018

The incredible volatility of the cryptocurrency market was on full display, as the price of ether, the currency of the Ethereum network, fell to below $500 in a new low point this year. The slide came about with just a word from the Securities and Exchange Commision (SEC) confirming "dozens" of ongoing investigations now looking into initial coin offerings (ICOs).

At one point, the price of ether dropped by a steep 19 percent in just 24 hours, going as far down to $470 from $580, as Ars Technica reported.

Ether is now valued at $546 as of this time, as reflected on Coin Market Cap, but there are still lingering fears that the bounce in value will be short-lived. It's the sort of weak bounce that will not carry the token far back up, as Coindesk noted.

The SEC has been looking into activities by cryptocurrency traders and influencers, ahead of more regulation that could come in the following months.

"We're doing obviously a lot in the crypto space, and we're seeing a lot in the crypto space," Stephanie Avakian, co-director of the SEC's Enforcement Division, said at a conference last week.

"We are very active, and I would just expect to see more and more," she added, hinting at an increased presence from the SEC now that the agency has decided to be more aggressive in regulating cryptocurrency and initial coin offerings.

On the other hand, the value of bitcoin has jumped up by $1,000, one of the bigger spikes this year in its value. Once again, the unpredictability of the values of cryptocurrencies is seen here.

This rise in value is attributed to the G20 Financial Stability Board (FSB), a global watchdog for banking and finance, and their recent statement that suggests that they are holding off aggressive controls for bitcoin and other crypto-assets.

"The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time," Mark Carney, chair of the FSB, noted in a letter to G20 central bankers and finance ministers via Reuters.