3 Reasons for the Crypto Collapse72.31

The bad old days are back. Crypto prices are in free fall and no one’s sure where the bottom lies. Even mighty Bitcoin wasn’t spared as prices crashed below the $6,000 mark--regarded by many as an unofficial floor--and then fell further to below $5,000. What’s going on?

Three recent events might explain the current collapse. The first is the SEC’s announcement on Friday that the operators of two “Initial Coin Offerings” (ICOs) broke the law by selling unlicensed securities, and must pay fines and restitution. As others have noted, this is only the beginning: Crypto bros spent most of 2017 poking the SEC bear, and now the bear is awake and ready to mete out a world of punishment. This development might be enough to spook some crypto investors, but it hardly come as a surprise. Anyone paying attention to the regulatory space knew this was coming, and so much of the fallout should have been priced into crypto token prices already.

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