Bitcoin Cash jumps 10% as crypto market sees positive spike

The cryptocurrency market had a generally positive Wednesday with most currencies in the green, but the biggest mover by far was Bitcoin Cash (BCH), which jumped considerably to almost $1,500 over the past 24 hours before settling at the $1,450-$1,470 mark.

As already indicated in previous news articles, BCH is fast becoming the currency of choice for fast transactions and more payment providers are taking on the cryptocurrency, thus increasing its popularity.

Another positive mover which saw a significant increase in price was Ethereum, which finally breached the $700 mark and sailed beyond that psychologically important level to trade at around $720 at press time. The news that Ethereum has finally deemed not to be a security has perhaps given the currency a boost, with trading volumes spiking sharply in the past few hours.

BTC saw a consolidation at around the $9,200 mark, but the price could start pushing upwards in the next 24-28 hours as more trading volume enters the market. Ripple also consolidated at the $0.83-0.85 level but there seemed to be little appetite for a push forward in that direction with the fabled $1 mark still far away. Litecoin saw a push beyond the $150 mark, but volumes were quite low and it appeared that it will take some time for the currency to start moving forward beyond the $160 mark and towards the $200 level. However as with Ripple and BCH, there is a constant stream of news regarding agreements signed for Litecoin, which can have a positive effect on the price on a long-term basis.

Of the currencies with smaller market cap, EOS continued losing most of the big gains which it had achieved last week and was trading at around $17 at press time—a loss of 8% although this appears to be a good entry position for new investors. Stellar seemed to be consolidating at the $0.45 mark with very little movement up or down, whilst Dash has also consolidated but at around the $480 mark with a push beyond the $500 level expected very soon as trading volumes and interest in the currency continue to increase. Ethereum Classic appeared to be preparing for a move towards the $30 level, although it’s still trading at the $22 mark but with quite strong volumes at that price. NEO recouped some of this week’s slump after Sunday’s bull run and was trading in the mid $80s at press time.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Bitcoin Cash recovers as crypto market trades sideways

The cryptocurrency market continued to trade sideways on Wednesday after dropping slightly in the past 48 hours. After a day of trading below the $9,000 mark, BTC regained the $9,100 mark on Wednesday morning although trading volumes remained slightly low.

Bitcoin Cash retraced slightly from its intra week highs on Tuesday; however, it was recovering well on Wednesday to trade above the $1,300 mark and was well on course to reach the $1,400 mark if a sustained rally takes place over the next few days. There has been a consistent spread of good news for this currency as it continues to be involved in payment agreements and other news that is generally positive.

The third largest currency by market cap, Ripple, also had a generally positive 24 hours, regaining the $0.80 mark with ease to trade at around $0.84 on Wednesday morning. Ripple also continued to be in the news with more banks and companies adopting the technology, so it must only be a matter of time before a jump in price is seen. Another larger market cap currency, Litecoin, appeared to be on a slight recovery as it was once again flirting with the $150 mark on Wednesday morning after having dropped in the low $140’s over the past days.

Ethereum remained relatively stable and was once again close to the $680 mark in the past hours after having dropped as low as $650 on Tuesday, when the market correction took place. The currency’s founder Vitalik Buterin seems to be in the news constantly nowadays and that can only have an effect on the currency’s short- to medium-term prospects as it continues to garner exposure. Ethereum Classic held on to the small gains it registered on Wednesday and was looking to breach the $22 mark if a rally takes place.

Currencies with smaller market caps had a slightly mixed day overall. XLM was up by around 4%, only to fall back in the past hours but is holding well at the $0.43 mark. EOS seems to have stabilized at the $18-19 mark after the steep rises of last week, whilst Dash is also stable in the $450-480 range. Other currencies such as TRON and VERGE had a mixed day with the former losing some of its steep gains achieved last week and the latter shooting up on high turnover.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Markets slump again as BTC drops below $9,000

After a relatively quiet morning in which only EOS experienced steep losses, the cryptocurrency markets experienced a considerable downturn on Monday evening and Tuesday morning. All major currencies were down with BTC experiencing another drop to below the $9,000 mark after having briefly flirted with $9,500 over the weekend. This had a corresponding negative effect on all major cryptocurrencies, which experienced drops in the values by around 5-10% in some cases.

Bitcoin Cash was down by around 6% after having superseded the $1,400 mark on Monday—it fell to below the $1,300 mark on Tuesday morning and was looking to drop deeper as selling pressure took hold. Ethereum also experienced a slight loss although this was not very marked and was trading at around $650 on Tuesday morning, with those levels appeared to be well supported. Its sister currency Ethereum Classic was also slightly down but had recovered considerably from its earlier lows in the past days, so was still well supported at the $21 mark.

Ripple had another disappointing day and lost the psychologically significant $0.80 level by dropping below that slightly to $0.79. The cryptocurrency had been playing around at the mid $0.85-0.90 levels, but Monday evening saw a steep drop of over 6% which was above the market movement. There appears to be good support in the $0.70-0.75 levels however, so there should not be cause for panic on investor’s part. Litecoin dipped well below the $150 mark on low volumes and there appears to be little appetite for a push in this currency at least for this week.

Of the currencies with smaller market caps, it was a mixed bag. EOS lost most of the gains it made over the weekend, dipping by around 16% as selling pressure took place although that was anticipated. NEO also lost some of the gains it made on Sunday and was down by about 10% overall at around $80. Stellar Lumens was perhaps the currency which held its own the best, with only a 3% drop and was trading at $0.42 at press time. Dash appeared to be losing support at the $480-490 level and was down by around 5% overall trading at $450 with a push towards the $50 mark appearing rather remote, at least for the next 24-48 hours.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Bitcoin Cash holds on to gains, sets sights on $1,500

The cryptocurrency market had a rather muted performance over the weekend, with most of the major coins staying at their price levels achieved over last week although there were some notable exceptions. BTC has been stuck between the $9,100 and $9,400 levels with very little movement in this tight trading range. However, it appears that the coin is poised for some upward movement in the next few days as new money comes into the market.

Bitcoin Cash held on to its levels very well enough and was trading at around $1,400 at press time and was looking to soar to the $1,500 level again with some upward momentum. The currency has performed very well, holding on to its gains over the past week. Another currency that appeared to be consolidating is Ethereum, which reached the $680 mark on Monday morning and was looking to achieve the $700 barrier yet again with the possibility of posting strong gains thereafter. Ethereum Classic was also performing well at press time and was looking to breach the $22 mark soon.

However, the strongest gainers over the past 48 hours were the coins with the smaller market caps. EOS was undoubtedly the star performer with an incredible 50% gain over this period rising to $22 at some point—a 100% gain over the week although it was retracing slightly to around $19 on Monday morning. NEO also had a considerable bull run on Sunday, rising by about 25% to exceed the $90 region although it fell back slightly by around 5% on Monday morning. Still, this was a considerable improvement over the last weeks, when the currency appeared staid and did not move that much.

Ripple was slightly disappointing in that it remained stuck between the $0.84 and $0.86 level notwithstanding all the amount of good news that continued dominating the markets. The fact that XRP continues to be involved in new agreements between banks should undoubtedly have a positive effect on its price sooner or later. Dash also appeared slightly staid, but is well supported at the $480-490 level whilst Litecoin remains stuck at the $150 mark with not much sign of any real movement downwards or upwards. Stellar Lumens also consolidated its strong gains over the past week and remains at $0.45, although a push towards the $0.50 mark is not to be unexpected.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Bitcoin Cash pushes for $1,400 as crypto market continues muted recovery

The cryptocurrency market continued a steady recovery, with almost all currencies rising slightly in the past 24 hours. Stellar headlined the march forward, increasing by as much as 10% overnight. BTC also finally shrugged off the foibles of dropping below the $9,000 mark when it rose to around $9,200 at press time.

Bitcoin Cash consolidated above the $1,300 mark and was trading at around $1,380 at press time—it was looking to breach that mark and regain traction for a push to the $1,400 mark. Lots of good news for the currency continued to push interest in the coin as several exchanges introduced trading pairs for Bitcoin Cash in their portfolios.

Ethereum also continued a steady recovery with a rise to the $650 mark and it looks strong enough to reach the $700 mark again, a figure breached also on Tuesday but was surrendered during Wednesday’s drop. It’s sister currency Ethereum Classic also had  strong showing over the past four hours, rising by around 8% to breach the $20 mark and looks poised to make considerable gains over the next few hours.

Ripple recouped most of Thursday’s losses and was trading at around $0.84 at press time with a minimal 1% increase over the past few hours. However, the cryptocurrency appears to have considerable turnover behind its back and another forage forward to the $1 mark would not be untoward as trading continues throughout the day. Litecoin also began recovering some of its losses over the past days and breached the $150 barrier with relative ease.

Of the currencies with smaller market caps, EOS continued to perform strongly and was trading well over the $15 barrier to consolidate the gains it made over the past few days. Dash appeared poised to regain the $500 barrier yet again, whilst NEO was the only sluggish currency amongst the top 10 appearing quite stuck in the early $70s levels. However, interest in this crypto remains strong and another push towards the $80 mark and beyond would not be unexpected at this stage.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Parity rejects Ethereum split proposal to recover lost $320M in ETH

It’s back to the drawing board for those who were seeking to recover the more than $320 million worth of frozen ETH funds, after Parity Technologies announced that it has “no intention” to split the Ethereum blockchain.

A glitch in a multi-sig wallet smart contract library last year was responsible for the funds being locked, a factor which had led some to speculate on a potential fork in the Ethereum blockchain to recover the money. However, Parity founders Gavin Wood and Jutta Steiner shot down proposals to force a split in the network. Wood was Ethereum’s former chief technology officer.

In a statement, the Parity founders said, “We have no intention to split the Ethereum chain. We plan to continue to work with the community to find a path forward. We have all dedicated a great deal of time and effort to developing the Ethereum ecosystem, and have no intention of harming what we have helped build.”

In spite of the decision to leave these funds in place, Parity continues to work towards the recovery of around 513,000 ETH which has been locked for over a year, after a bug allowed for the destruction of a wallet library contract, affecting some 600 different multi-signature wallets. Majority of the frozen funds belong to Wood’s Web3 Foundation.

“All of us at Parity Technologies are deeply sorry to the users who remain unable to access their ether as a result of a bug in our code,” Parity said. “We have been in constant conversation with affected projects and believe that those in the community who have stuck ether, either through the wallet freeze or, for example, issues such as those listed in EIP-156, have a case for attempting to recover the property.”

The issue of recovering funds locked by self-destructed smart contracts has been a topic of debate within the Ethereum community, which has thus far resisted calls for a fork or other standardised recovery process for reclaiming lost ETH.

In an attempt to circumvent these concerns, Parity recently submitted EIP-999 to restore only the specific Parity library affected by the glitch, as a means of recovering the funds. However, the issue remained in contention, and there were fears that this course of action would lead to a further split in the Ethereum blockchain.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Bitcoin Cash maintains $1,300 level amid mid-week market slump

The cryptocurrency market continued its mid-week slump, which started early on Wednesday morning after BTC dropped from a monthly high of $9,800 to below the $9,000 mark in just a few hours. That big crash dragged almost all major coins down with most dropping steeply and with double digit losses for the day. The market cap also dropping from almost $450 billion to below the $400 billion mark.

Bitcoin Cash retreated considerably although it was trading above the $1,300 mark at press time. This is still well over 120% up from its intra month low of around $600. Ripple also suffered a big decline over the past 24 hours, trading at below the $0.80 mark after having climbed to the $0.95 region on Tuesday and was thought to start attacking the $1 mark soon. Another currency that suffered a considerable drop was Ethereum, which had easily surpassed the $700 mark on Tuesday only to fall to the $630 mark even dropping below the $600 level at one point, although there was eventually a slight recovery in the price. Ethereum Classic also had a bad day, dropping over 20% overall after having flirted with the $22 mark. It is now trading at the $18.50 mark with a modest recovery expected in the next few days as it consolidates around that level.

Litecoin also lost the momentum it had gained on Tuesday and was trading at around $145 at press time, although there appeared to be strong support at the $140 level. The same could be said for Dash, which lost the $500 mark it had gained in the early part of the week and was trading at the $460 level at press time.

Of the currencies with smaller market caps, Stellar was the only bright spark for Thursday morning rising to the $0.39 mark again after having lost a whopping 20% on Wednesday and looked well poised to begin breaking the $0.40 mark yet again. NEO retreated by around 15% overall to the low $70’s level while EOS looked to have consolidated its level of around $14 with another push towards the $16 mark not out of the question. The latter currency was the only one not to drop considerably over the Wednesday crash and held on to most of its astonishing gains registered on Tuesday.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

ERC20 deposits blocked on OKEx over critical smart contract bug

Hong Kong-based cryptocurrency exchange OKEx has put the brakes on all ECR20 deposits following the possible discovery of a bug in at least 12 smart contracts that are built to the ECR20 standard. The news came out Tuesday, forcing the exchange into action to prevent attackers from exploiting the bug.

The smart contract bug, called “BatchOverFlow,” allows an attacker to create tokens from thin air and then deposit them into a verified Ethereum wallet. In a statement, OKEx said attackers who exploit the bug “can generate an extremely large amount of tokens, and deposit them into a normal address,” which “makes many of the ERC-20 tokens vulnerable to price manipulations of the attackers.”

“To protect public interest, we have decided to suspend the deposits of all ERC-20 tokens until the bug is fixed. Also, we have contacted the affected token teams to conduct investigation and take necessary measures to prevent the attack,” according to the exchange.

Following OKEx’s suspension, another cryptocurrency exchange followed suit. Changelly, which operates as a broker between exchanges and users, announced via Twitter that it would be suspending deposits following “an exploit check.” Changelly promised to bring the tokens back as soon as they’re certain “there is no vulnerability in deposits received.”

The bug was first identified over the weekend and published in a post on Medium. The author of the post, “ranimes,” claims that it could affect over 20 ERC20 smart contracts. The post includes several proofs-of-concept, showing the validity of the bug.

How much damage has been done and what tokens were affected isn’t known. However, BeautyChain, a beauty-themed ecosystem, was already exploited. Once the exploit of its coin, BEC, was identified, exchanges began suspending BEC trading, and some rolled back BEC trades.  OKEx rolled back BEC/BTC, BEC/ETH and BEC/USDT to 1:18 PM April 22, Hong Kong time.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Amazon loses control of cloud services in MyEtherWallet-linked hijack

Amazon has lost it. At least it did for a couple of hours Tuesday morning. An unidentified hacker was able to exploit a known bug in Internet routing protocols to compromise Amazon’s cloud servers, ultimately stealing about $150,000 in Ether (ETH), the cryptocurrency backed by Ethereum.

The hack took advantage of a weakness of a part of the Internet’s Domain Naming Service (DNS) protocols and allowed the hackers to mimic the cryptocurrency website MyEtherWallet.com. The attack began at around 6:00 AM PST and approximately 1,300 IP (Internet Protocol) addresses were targeted. The addresses reportedly belong to Amazon’s DNS, Route 53.

Amazon refuted the claims. In a statement obtained by Ars Technica, the e-commerce company said, “Neither AWS nor Amazon Route 53 were hacked or compromised. An upstream Internet Service Provider (ISP) was compromised by a malicious actor who then used that provider to announce a subset of Route 53 IP addresses to other networks with whom this ISP was peered. These peered networks, unaware of this issue, accepted these announcements and incorrectly directed a small percentage of traffic for a single customer’s domain to the malicious copy of that domain.”

The hack centers on the Border Gateway Protocol (BGP), part of the DNS system that correlates website names to IP address destinations. The BGP allows network operators the ability to send large amounts of Internet traffic from one location to another. Although it is considered to be a critical component of the Internet, it relies on open DNS systems that rely on a “trust factor” whereby entities are assumed to be who they say they are. The bug has been around for years, but no patch has yet to be created.

Last year there were two BGP-based attacks. The first occurred in April and involved traffic from Symantec, MasterCard and Visa. The second took place in December, and impacted Facebook, Apple, Microsoft and Google.

This latest attack was traced to a server in Russia by security researchers. $150,000 is a substantial amount to lose, it’s nothing compared to what was revealed to be held in the destination wallet. The researchers determined that the hacker’s wallet contained $17 million worth of digital currency.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

MyEtherWallet falls victim to DNS attack

Client-facing Ethereum wallet MyEtherWallet has become the latest victim of a DNS attack. Users of the service reported missing funds, which have been confirmed by third party sources, as a result of the hijacking of their servers—a factor security experts have attributed to the risks of providing access to funds from a centralised source.

Initial reports began emerging on Tuesday, with users reporting suspicious behaviour around their MyEtherWallet accounts. The platform does not hold any cryptocurrency itself, but by providing a centralised interface for users, it is subject to the same risks that affect any website—the risk of a hack to the DNS servers, which can compromise the website and the details of those who have interacted with it.

While initial reports were confirmed by MyEtherWallet, panic only started to properly set in with the emergence of a post on Reddit. According to the user affected, who was confronted with an error when logging on to the site, his gut feeling was that something was amiss.

“Even though every part of my body told me not to try and log in, I did. As soon as I logged in, there was a countdown for about 10 seconds and A tx was made sending the available money I had on the wallet to another wallet.”

According to third party services, the wallet address linked to the scam has already conducted some 180 scam transactions, totalling as many as 215 ETH worth over $134,000 based on current trading prices. After several hours, MyEtherWallet announced that “everything is now back to normal.”

In a statement on Reddit, the MyEtherWallet team said the attack was not due to a lack of security on the platform, but “hackers finding vulnerabilities in public facing DNS servers.”

“This redirecting of DNS servers is a decade-old hacking technique that aims to undermine the Internet’s routing system. It can happen to any organization, including large banks,” the statement read.

According to analysts at rival firm MyCrypto, the only way to protect against this type of hack is to use a hardware wallet, or to run this type of platform in the offline environment, thus preventing the risk of a DNS hijack.

“Lots of anti-phishing folks in the community and on our team are attempting to collect information about what happened to MEW, as well as attempting to get in touch with their team to assist in any way we can. Moral of the story: use a hardware wallet or run offline,” MyCrypto tweeted.

The news will be concerning for any user of the MyEtherWallet service, with those who have logged in over the last couple of days at the most significant risk of being compromised.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Bitcoin Cash holds on to its gains as crypto market recovery stalls

The cryptocurrency market experienced a slight correction on Wednesday morning from the dizzying highs experienced earlier in the week. BTC traded around $9,800 on Tuesday night, but eventually dropped to the $9,200 mark before recovering slightly to around $9,400 with selling pressure at that level.

Bitcoin Cash saw a slight retracement from Tuesday, dropping by around 8% to trade at $1,350 at press time but still held on to most of its gains over the past few days. The drop was probably due to investors cashing in on some short-term profits after the dizzying rise of 160% since April 1—a record in cryptocurrency price movements. With a lot of good news coming from the mining front and a hard fork expected in mid-May, Bitcoin Cash is expected to rise much further over the coming days.

Ripple also saw a retracement of around 10% to the $0.87 mark at press time having reached the $0.96 mark on Tuesday, which, again, could be attributable to selling pressure. After a meteoric rise over the past 48 hours where it even touched the $700 mark, Ethereum also retraced by around 10% to touch the $650 mark, although it was in recovery mode at press time trading at around $670 and well on its way to regain the $700 level. Litecoin was also down by around 5% to trade in the mid $150’s although the drop was not as steep in this coin. Ethereum Classic had advanced considerably on Tuesday to trade at the $22 mark but retraced again to the $20 level with major support at that level.

Of the currencies with smaller market caps, an almost identical pattern was to be seen. Stellar dropped by around 11% to trade at $0.37 after having been well over the $0.40 mark on Tuesday. NEO also saw a considerable retracement of around 8% to trade in the mid $70’s again after having reached the $83 mark on Tuesday. Dash also dropped by 8% after having been well over the $500 mark on Tuesday to just under that level although it could easily bounce back in this bull market. EOS retraced slightly from its dizzying 35% rise on Tuesday but was only down by around 5% and was consolidating at the $14.50-$15 level.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Ethereum, Ripple tokens could be securities, says former CFTC head

Two of the world’s largest cryptocurrencies could, in fact, be securities, according to the former chief of the U.S. Commodity Futures Trading Commission (CFTC).

Major cryptocurrencies like Ether (ETH) and Ripple (XRP) still operate in a largely unregulated environment, and according to former CFTC chairman Gary Gensler, they could yet still run into difficulties with U.S. regulators.

The comments are significant since securities are regulated in the U.S., as with most developed economies worldwide.

In comments delivered at an MIT blockchain event, Gensler confirmed his personal view that ETH and in particular Ripple’s XRP token, should be classified as securities. Citing the Howey Test, which can be used to decide when an investment is a security, Gensler told delegates that both Ethereum and Ripple tokens could be “operating outside of U.S. laws.”

Classification as a security brings a new level of scrutiny for any financial instrument, with specific regulation under the watch of the Securities and Exchange Commission a legal requirement before any security can be sold.

The specific features of ETH and XRP, including the fact they were launched via initial coin offerings (ICOs), means they fall within the parameters of the Howey Test, and should be regulated as securities, according to Gensler’s argument.

However, he highlighted that Bitcoin (BCH) would not be classed as a security on the same basis, because it was not launched with an ICO.

If the comments give any insight into the attitude of U.S. regulators, there could well be ramifications for those crypto tokens legally deemed to be securities, with severe penalties for those responsible for any breach in securities laws.

In response, a statement from Ripple dismissed the idea that their token should be regulated as a form of security.

In an email to Bloomberg, the Ripple spokesperson said the company doesn’t believe XRP should be classified as security since it “does not give its owners an interest or stake in Ripple and they are not paid dividends.”

“XRP exists independent of Ripple, was created before the company and will exist after it. Ripple has always promoted XRP as a useful digital asset for enterprise payments because it’s faster, more scalable and more inexpensive than other digital assets. That utility exists completely separate from Ripple,” according to Ripple’s statement.

The Ethereum Foundation has yet to respond to Gensler’s statement.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.