Basic Attention Token (BAT) News – Why is Basic Attention Token (BAT) down by over 27% in just 2 days?

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The past few days have been pretty eventful for a Basic Attention Token (BAT). It got listed on coinbase. Generally, it is expected that the cryptocurrencies or the altcoins which get listed on coinbase will continue their rally for at least a few days. However, the same cannot be said about Basic Attention Token (BAT). While on the back of Coinbase listing, it sure did hit $ .37 approximately 48 hours ago but currently, it is trading down by 28% at just $ .27. We look into the downfall and the reasons to understand more.

Why is Basic Attention Token (BAT) down by over 27% in just 2 days?

It seems like the retracement which most of the cryptocurrencies and Altcoins face after listing on Coinbase can retrace much sooner for Basic Attention Token (BAT). The momentum did not even last for a week or so. That is one of the main reasons why it has moved down by 27% in just 2 days.

Apart from that, there are some fundamental developments as well due to which, the Altcoin is actually moving lower. Zachary Coburn, who is the founder of the crypto exchange EtherDelta was recently accused of operating an unregistered securities exchange. However, this exchange is entirely decentralized. In spite of that, SEC charged him. He settled with the SEC by paying approximately $ 388,000 in penalties as well as other charges. This clearly indicates that irrespective of the nature of the exchange, SEC is cracking down hard on the cryptocurrency exchanges which are not registered.

The order which was issued by the SEC in this case clearly mentioned that ERC tokens were widely traded, to the tune of 3.6 million trades on the cryptocurrency exchange. The mere mention of ERC 20 tokens has led to a sell-off in not just Basic Attention Token (BAT) but also in the other altcoins as well. This is another factor due to which this Altcoin might be falling as well.

The problem is that in the view of the SEC, ICO’s constitute the issuing of securities. Basic Attention Token (BAT) was issued with an ICO. The ICO was sold out in just 30 seconds. That is why, many of the investors and traders feared that the SEC might turn its gaze on the ERC 20 tokens which were launched through an ICO. While this might not be the very next move by SEC but it certainly has brought Basic Attention Token (BAT) on the radar of the SEC. While this might or might not be true but many of the traders, as well as investors, fear this due to which, the current sell-off has been accelerated.

About Priya 131 Articles
I am an IT engineer by qualification and like to explore the crypto and blockchain space in my free time.

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