Why Is Ethereum Classic Dropping Full Overview
Many investors wonder why Ethereum Classic has been dropping the past few days, but once you look into it, you understand why. Some possibilities could affect the price of any cryptocurrency. They include the market environment regarding cryptocurrency pricing and sentiment, which can be either bullish or bearish. Other important factors affecting the price of cryptocurrencies are security issues and whether an upcoming event is likely to affect the value of a cryptocurrency on a short-term basis. In this article, we will discuss the reasons why is Ethereum classic dropping full overview.
1. Hackers Targeted ETC Users
In 2019, hackers targeted Ethereum Classic users by phishing emails containing malware attachments. The emails were sent to all users, including ordinary individuals and businesses like exchanges and wallets.
The hackers used the same technique as scammers who send emails claiming that they have won the lottery or something similar and need your bank details to pay you your winnings. They also use identical language and grammar in their emails to appear authentic when read by busy people who don’t know any better or are just not paying attention to what they’re reading because they’re too busy or distracted at that moment.
2. Rumors of Fake ETC Ponzi Schemes
The most common reason people are giving for why Ethereum Classic is dropping is due to rumors that there are fake ETC Ponzi schemes out there that have duped unsuspecting investors out of millions of dollars. These Ponzi schemes offer an initial investment with a promise of high returns in a short period. Still, they don’t invest any money themselves and instead pay out old investor funds with new investor money until they eventually run out of cash and collapse under their own weight.
3. The SEC and ICOs
The U.S. Securities and Exchange Commission (SEC) has expressed concern about the initial coin offering (ICO) market, where ETC tokens can be purchased. The SEC has been very clear in its stance on ICOs, saying that those involved must be registered as exchange or broker-dealers. In addition, the SEC has also made it clear that if a token is deemed a security, it will be subject to federal securities laws and regulations.
This has caused many ICOs to shut down their operations as they do not want to comply with these rules. This is especially true for smaller companies only looking to raise a few million dollars; however, this might not be enough for them to continue trading in the future.
4. The Block Reward Halving Has Arrived
The block reward halving has arrived for Ethereum Classic, meaning fewer coins will be produced per block mined on the blockchain. This is a significant event because it can negatively impact the price of ETC over time if it does not happen at all or if there is no demand for these coins once they are released into circulation. This could also cause miners to move away from Ethereum Classic and focus on other cryptocurrencies instead because there will be less incentive for them to continue mining this blockchain over time.
5. The Coinbase Listing Controversy
The Coinbase listing controversy is one of the biggest reasons Ethereum Classic (ETC) is dropping. The exchange has been accepting new assets since 2017; they announced that they are suspending their new coin listings due to “insufficient liquidity” in the market.
This caused some people to believe that Coinbase was intentionally avoiding Ethereum Classic because it was not profitable for them. This led to a lot of speculation, which ultimately drove down the price of ETC by more than 20%.
6. The Price Is Too Low For Most Investors Right Now
The price of most cryptocurrencies has been dropping significantly since 2018, when Bitcoin first fell below $6,000 per BTC coin. Ethereum Classic (ETC) decreased by 75% during this period alone!
This means that most investors are looking for a cheap entry point into the market right now to buy more coins when prices go back up again later on down the road. And since Ethereum Classic (ETC) is trading at around $2 per ETC coin on average right now, it’s simply not worth buying at this time unless you have extra cash lying around waiting to be invested somewhere else wholly unrelated.
7. Asian Traders Are Leaving
Several exchanges have decided to delist ETC in the past few days due to low trading volumes and liquidity problems. This reduces the incentive for traders to buy and sell this digital currency on these exchanges and further depresses its price. The first exchange for cutting ties with ETC was Bithumb, which announced that it would stop trading this coin on July 1st. Soon after Bithumb’s announcement, other major exchanges, such as Huobi Pro and OKEx, followed suit by announcing their plans to delist this cryptocurrency from their platforms.
8. The South Korean Market Turmoil
South Korea is one of the most important markets for cryptocurrencies. More than 20% of traders use cryptocurrencies as part of their daily lives. This means that if something happens in South Korea, it will affect the whole market. Therefore, when there was an announcement about closing down local exchanges in South Korea, people started selling their coins at any price they could because they did not want to lose their investment.
The main reason why people are selling their ETC tokens is that they do not want to keep them on exchanges where they cannot withdraw them anymore after the deadline expires. There are also speculations about what might happen after the deadline ends or whether there will be new regulations regarding digital assets trading platforms, but these speculations are not clear enough.
9. ETF Delays from the SEC
The SEC delayed its decision on whether or not to list a bitcoin ETF, causing a lot of confusion among investors and traders alike. The Bitcoin ETF would have been listed on the NYSE Arca exchange, making it easier for investors to invest in digital assets without having to buy them directly through an exchange like Coinbase or Binance. This would have also opened up more opportunities for institutional investors to invest in digital assets, which could have resulted in more buying pressure and higher prices for cryptocurrencies like Ethereum Classic and Bitcoin (BTC). However, now that this decision has been delayed indefinitely, many traders are likely waiting until this happens before investing more money into cryptocurrencies like ETC and BTC.
The bottom line is that Ethereum Classic is a viable platform with great potential if things continue to develop. If you want to get involved with cryptocurrency and trade ETC, the best trading system is still the basic strategy. Traders will want to purchase units before those expensive ICOs come out and then sell them immediately for substantial profit margins. Likewise, intelligent traders will want to move on Ethereum Classic as soon as some big news breaks.
This blog post is intended to provide general information about investing in cryptocurrencies and is not intended to constitute financial advice. All investors should seek professional financial advice from a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies is a high risk investment and should only be done after you have researched the topic yourself and understand the risks associated with investing in such assets.