Cryptocurrency has mostly outgrown its wild west years, but it has not completely left them behind. Reuters reports that cryptocurrency issuers seeking positive press for their offerings in the hype-centric world of digital currencies have a vibrant ecosystem of options to choose from – for the right price.
The prevalence of pay-to-play-styled businesses with unregulated ethical standards has raised questions about the validity of various coin offerings while threatening to draw the ire of the US Securities and Exchange Commission (SEC).
Influencer marketing on the internet is hardly unique – a quick look at Instagram, YouTube, and other social media platforms means engaging with plentiful ads, covert or otherwise. But lack of disclosure to customers about promotional relationships may soon place digital currencies in the SEC’s crosshairs.
The SEC issued a warning in 2017 that “virtual coins or tokens may be securities and subject to the federal securities laws.” This was the regulator’s opening salvo; it was followed by a statement on their website that “…any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion.” Non-compliance means “a violation of anti-touting provisions of federal securities laws and may also be fraud.”
Transparency and disclosure among so-called ‘experts’ in the digital currency world are largely the exception, not the rule. One scandal covered in Reuters’ report involved supposedly unpaid (and background check-vetted) specialists on ICO listing and rating service ICObench, who were accused of accepting payment in exchange for positive ratings. The company, who strongly denies their ratings can be paid for, removed all ratings from the two experts in question after their connection to the controversy, but the episode did little to assuage fears about rating validity.
Cryptocurrency research firms exist to provide information to investors, but the reports they issue are often funded by the project being scrutinized. One company, Spero, does offer general disclosures, but they are often “not specific about whether a payment was made by the client whose project is being assessed, and if so, how much.”
There are additional ways to manufacture hype. ICO agencies exist to “offer crypto issuers active followers and posts on social media platforms such as Telegram, Reddit and Bitcointalk.” One, called TGE.company, offers comments written by “professional copywriters with extensive experience in ICO.” Agencies also pay writers “to publish stories mentioning their clients, or linking back to their clients’ websites,” with prices running the gamut from $100 to $10,000.
While the SEC has yet to clarify which virtual currencies it classifies as securities, it has “brought enforcement actions against a dozen or so companies connected to ICOs, some of which the agency has identified as unregistered securities offerings, and therefore subject to its regulation,” says Reuters. Outside promoters of cryptocurrencies have thus far escaped sanctions, but that may be changing in a climate where anyone can promote themselves as a crypto expert to sway investor opinion.
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BTC.X's Aroon Indicator triggered a bullish signal on December 09, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 464 similar instances where the Aroon Indicator showed a similar pattern. In of the 464 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BTC.X advanced for three days, in of 436 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for BTC.X moved out of overbought territory on November 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 58 similar instances where the indicator moved out of overbought territory. In of the 58 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 92 cases where BTC.X's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BTC.X as a result. In of 136 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BTC.X turned negative on November 26, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 59 similar instances when the indicator turned negative. In of the 59 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BTC.X declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BTC.X broke above its upper Bollinger Band on November 10, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows