Cryptocurrency prices are falling after the SEC’s lawsuit against Binance, but those presales continue to rise

SEC's lawsuit against Binance

Cryptocurrency markets have just experienced a major drop in a single day following the announcement of a lawsuit by the US Securities and Exchange Commission (SEC) against Binance, its US subsidiary Binance.US and platform founder Changpeng Zhao (CZ).

Bitcoin (BTC) is trading almost 5% lower (around $25,800). It just hit its lowest level since March (under $25,500). Meanwhile, ether (ETH) is down nearly 4% for the day and was trading above $1,800.

The SEC’s new lawsuit against Binance, Binance.US and CZ consists of thirteen claims. The exchange is accused of offering unregistered securities to the general public, referring to BNB and BUSD tokens.

“Based on the thirteen allegations, we allege that Zhao and Binance created an extensive network of deception, conflicts of interest, concealment of information, and willful evasion of the law,” SEC Chairman Gary Gensler said in a statement.

Another lawsuit alleges that a number of other coins offered on Binance are also unregistered securities, including Solana (SOL), Cardano (ADA), Algorand (ALGO), Coti (COTI), Cosmos (ATOM), Axie Infinity Shards (AXS), Filecoin (FIL), The Sandbox (SAND), and Decentraland (MANA).

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According to CoinGecko, BNB, ADA, SOL, MATIC and ATOM have fallen 6-9% in the last 24 hours.

SEC increases uncertainty in the US crypto industry

Such actions by the SEC against the Binance exchange add uncertainty to the regulation of the crypto industry in the US, which is the largest market in the world. The suit was filed after the US Commodity Futures Trading Commission (CFTC) reported a similar claim against Binance, accusing the platform of knowingly operating an unregistered digital commodities exchange and offering unregulated crypto derivatives in the US.

The key difference from the CFTC lawsuit, of course, is that the CFTC did not name many of the world’s largest cryptocurrencies as unregistered securities. The CFTC lawsuit actually recognized most (including XRP) as digital commodities.

Of the 20 largest cryptocurrencies by market capitalization, the SEC accused eight of being unregistered securities, including BNB, XRP, Cardano (ADA), Solana (SOL), Polygon (MATIC), Tron (TRX), Binance USD (BUSD) and Cosmos (ATOM).

The cryptocurrency’s fall will continue

The SEC’s latest action will likely ensure that the overall downtrend in cryptocurrency markets that has been seen since reaching a yearly high in mid-April will continue. This will continue, at least for the near future.

Bitcoin has now finally lost control of its 100-day moving average (DMA) and is likely to test a key long-term support low around $25,000 in the coming days. A test of the 2023 uptrend is also possible, as is a retest of the 200DMA at the $23,000 low.

The cryptocurrency market’s ability to profit in the short term is now limited due to regulatory uncertainty. Therefore, investors looking for this type of profit may want to consider some small-cap cryptocurrencies.

Investing in low-capitalization cryptocurrencies is a high-risk game for the very brave, but if done right, it is by far the best way to make a quick and large profit.

The trick is to find an as yet unknown but promising crypto project and invest in it as early as possible. Often the best way to do this is to get into its presale.

A presale is a situation where a cryptoproject puts its token up for auction to raise funds to build its own platform. Cryptonews.com analysts spend a lot of time studying the many pre-sales.

Here are a few pre-sales that continue to perform despite the uncertainty in the cryptocurrency market.

Wall Street Memes (WSM)

Wall Street Memes is one of the most popular retail investor communities on the internet and has become known for the 2021 meme stock craze. The project recently expanded its prominence in the crypto space with a new pre-sale of its associated token $WSM.

The presale, which raised nearly $4 million in just 10 days, echoes the successful launch of the NFT Wall Street Bulls collection of 10,000 in 2021. It famously brought in $2.5 million and sold out in 32 minutes.

The success of the $WSM pre-sale is unsurprising given the number of memes about Wall Street.

The wallstbets Instagram account already has 523,000 active community members, with another 214,000 on Twitter and more than 100,000 on two other Instagram profiles, wallstgonewild and wallstbullsnft. (Meta (which owns Instagram) has been recognized as an extremist organization in Russia)

Overall, Wall Street Memes has a community of millions, which analysts say almost guarantees that the $WSM token will be listed on tier-one cryptocurrency exchanges like Binance.

With a focus on empowering ordinary people, 100% of the tokens are dedicated to the Wall Street Memes community – there are no secret private sales and no lavish rewards for the team.

50% of the tokens are available in the presale; 30% for community rewards; and 10% each for CEX and DEX liquidity. With 30% of the offering dedicated to incentivizing the community, you can reasonably expect airdrops for holders to become part of the ecosystem.

Indeed, the first $WSM giveaway has already begun. Join the project on Discord, social media, buy and exchange $WSM to be eligible for rewards.

To purchase $WSM tokens you will need ETH, BNB or USDT (ERC-20 or BEP-20 versions are accepted). Simply connect your wallet on the website to make the purchase.

Analysts are already predicting 10x earnings for Wall Street Memes when it is listed on exchanges, and you may have time to become part of the project.

Ecoterra (Ecoterra).

Ecoterra (Ecoterra) is a native cryptocurrency of a blockchain-driven green ecosystem that incentivizes environmental initiatives. According to the official announcement, they are creating a universal Web3 project based on the $Ecoterra token designed to encourage recycling through a first-of-its-kind Recycle-to-Earn (R2E) system. The project also promotes trading of recycled materials and motivates people and businesses to offset their carbon footprint.

The startup Web3’s R2E application is supported in any country where plastic container vending machines (RVMs) are used. This opens up a huge market of opportunities around the world.

Web3’s new green projects, such as Ecoterra, are expected to play an increasingly important role in global efforts to combat climate change over the next decades, along with the spread of crypto.

Unsurprisingly, the cryptocurrency pre-sale that Ecoterra is currently holding to fund the development of its platform has been a resounding success.

Ecoterra is in the fourth phase of the Ecoterra token pre-sale, with Ecoterra tokens currently priced at just $0.00925. The project just recently raised over $4.8 million dollars in total already.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.

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