- Ethereum prices add 20%
- SHIB Tokens donated to the COVID-Crypto Relief Fund hard to sell
- Binance reduces daily withdrawal limits to 0.06 BTC
- Uniswap delist “investment contract” tokens
Regulators, especially in the U.S., appear to be descending on exchanges and blockchain companies.
While there have been no boisterous declarations by U.S. regulators, subtle actions in the past few months are sending chills down established, non-compliant exchanges.
Regulators descend on Cryptocurrency Exchanges
Binance, the largest exchange by client count, for example, is limiting daily withdrawal limits to 0.06 BTC, down from 2BTC for new users who haven’t completed basic verification.
Effective immediately for new account registrations, users that have completed only Basic Account Verification will have a daily withdrawal limit of 0.06 BTC. 2/5
— Binance (@binance) July 27, 2021
At the same time, FTX, an exchange supporting derivatives trading, chopped its leverage from 100X to 20X.
1) An effective margin system is integral to an efficient economic system.
There are limits to everything, though.
— SBF (@SBF_FTX) July 25, 2021
However, it is the decision by Uniswap—a DEX controlled by the community—to delist some tokens. Their move raises even more questions about its decentralization.
As of today, we have started restricting access to a small number of tokens at https://t.co/liqYXtQoM2
These changes pertain to the interface at https://t.co/liqYXtQoM2 — the Protocol remains entirely autonomous, immutable, and permissionless.
— Uniswap Labs 🦄 (@Uniswap) July 23, 2021
Uniswap Labs said the protocol would be delisting tokens, including those pegged to precious metals and tokenized stocks offered via other protocols like UMA and Synthetix, as they monitor the regulatory environment.
The crackdown comes amid rising concerns on the foundational risks of USDT—the world’s most liquid stablecoin with a circulating supply of over $61 billion.
Tether Limited, the issuer, faces scrutiny over its opaqueness and failure to submit an audited report on its reserves. Still, Tether executives maintain that the token is backed 1:1 to the USD.
Liquidating SHIB Tokens is Dodgy for India’s COVID-Crypto Relief Fund Managers
Meanwhile, the billions worth of SHIB tokens donated by Vitalik Buterin to assist India battle the coronavirus pandemic is proving challenging to cash out, according to the manager in charge of the COVID-Crypto Relief Fund.
Thus far, reports indicate that just $20 million of the $1 billion of SHIB tokens have been liquidated and distributed to affected patients and families.
Another $20 million of SHIB would be sold soon. Still, the process of selling is now challenging because of SHIB’s relative illiquidity and devaluation following the rug.
All cryptocurrencies held by the fund must first be converted into USD and then rupees. This red-tape, analysts observe, drags the process.
Ethereum Price Analysis
Market participants are confident crypto and Ethereum prices will weather the storm of June and May 2021, unwinding losses.
At the time of writing, Ethereum prices are up 20 percent week-to-date, stable on the last trading day.
From the daily chart, the immediate resistance level stands at $2.4k—flashing with June 2021 highs. A high volume, wide-ranging bull bar cracking above this liquidation mark could lift ETH/USD prices back to $2.9k, the main resistance level and the medium-term buy target.
Chances of this panning out remain high. Notably, this week’s gains are with decent trading volumes, rebounding from the $1.75k support level of June, confirming the double bar bullish reversal pattern of June 20 and 21.
In the short-term, a dump down below $2k nullifies the uptrend, allowing sellers to flow back, a precursor for a sell-off towards $1.75k in a bear trend continuation of May and June 2021.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.