Cover photo

šŸŸ£ The Ethereum FUD is Increasing

Should You Sell Your $ETH ASAP?

GM DOers! šŸ˜Ž

Ethereum got kicked in the balls this weekā€¦ hard. šŸ«£

First up, we found out that the Ethereum Foundation is being investigated by a state authority.

Secondly, the SEC has delayed their decision on VanEckā€™s spot ETF application ā€“ but we were expecting that. šŸ¤·

Thirdly, the Chairman of the U.S. House Committee on Financial Services says that the SEC and Gary Gensler are looking to classify $ETH as a security. šŸ˜Ø

Ouchā€¦ Thatā€™s some hard kicks. But letā€™s debunk each one to see if any of this FUD has any substance. 

P.S. - At the end, Iā€™m sharing what Iā€™m doing with my $ETH, so you know how to put it to work.

P.S.S. - Weā€™re also highlighting the NFT Of The Month, so stick around.

Letā€™s go. ā¬

The Ethereum FUD Explained šŸ˜Ø

The Ethereum Foundation has just entered the crosshairs of the SECā€¦ Again. 

Earlier this week, a so-called ā€œWarrant Canaryā€, aka the colorful bird below, disappeared from Ethereum Foundationā€™s website.

This bird was basically a way of telling people that the Foundation has not received any actions (i.e. lawsuits) or requests (i.e. subpoenas) from the government or law enforcement authorities.

With it gone, it suggests, in a discreet way, that the Ethereum Foundation has been approached by government authorities.

In the GitHub code, the dev who removed this canary left a note saying ā€œthis commit removes a section of the footer as we have received a voluntary enquiry from a state authority that included a requirement for confidentialityā€.

In other words, the FBI is knocking on the door. 

This is part of a larger investigation into Ethereum, which apparently started after the merge (from proof-of-work to proof-of-stake). 

A report from Fortune indicates that the SEC is requesting documents from several U.S. firms to support the argument that $ETH should be considered a security.

Now, thereā€™s basically 2 explanations for this investigation. 

1/ Itā€™s completely normal for the SEC to do their due diligence, especially with a final decision on several ETF applications coming up in May. 

Besides, crypto firms are pretty used to getting subpoenas from the SEC by now. 

2/ This is a coordinated attack against Ethereum, and a way for Gary Gensler and the SEC to find reasons why they should deny the ETF in May. 

The latter is obviously what most crypto people think is going on here.

Regardless, the SEC chose to delay their decision on VanEckā€™s spot Ethereum ETF application, something everyone was expecting either way. 

The main deadline weā€™re watching for in regards to the spot ETH ETF is May 23rd.

Analysts from Bloomberg and prediction markets are estimating a 25% likelihood that the approval will happen in May.

Itā€™s not looking good, and before the approval can happen, the SEC needs to officially admit that $ETH isnā€™t a security. 

Is $ETH a Security or Not? šŸ¤·

Honestly, I barely understand what a security is. 

But if Ethereum gets slapped with that label, I know it means a lot more rules and paperwork for anyone wanting to play with it ā€“ kind of like needing a permit to throw a Frisbee in the park. 

I also know itā€™s going to be bad news for my bags. šŸ˜•

So Iā€™ll let Paul Grewal, the Chief Legal Officer at Coinbase tell us whether or not Ethereum is a security. 

TL;DR, he says itā€™s not. Here are a few reasons why.

1/

2/

3/

4/

5/

This point is actually pretty important, and sustained by Brian Quintenz, the Global Head of Policy at a16z.

6/ 

Conclusion

Wrapping Up ā€“ What Should You Do Now? šŸ¤”

1/ Stop worrying! 

2/ Ethereum is not a security (I think we established that above).

3/ Ethereumā€™s ETF is coming this year

Even if the ETF applications get denied in May, thatā€™ll only lead to a bunch of lawsuits against the SEC, which will lead to an inevitable approval at some point. 

4/ Zoom out. The world's largest asset manager, BlackRock, is building on Ethereum.  

Clearly, $ETH is undervalued at todayā€™s prices, so keep stacking, put your coins to work and chill. Hereā€™s what Iā€™m doing right now.

Also, hereā€™s a SUPER helpful guide put together by our G.O.A.T community member Kuba, on how to navigate LRTs (liquid restaking tokens).

If youā€™re not already in our Discord, then WTF are you doing? Join us now! 


The NFT Of The Month is... The Plooshies

Plooshies is a collection that showcases 3333 fully rigged and animated 3D models of 11 unique characters.

The project aims to bring childhood memories back to life through interactive storytelling.

Next week, we're doing Token Of The Month, where we'll feature 4 tokens suggested by our community. Reply to this email with your suggestion on which coins we should pick.


Thanks for reading. And remember, you're strong, youā€™re powerful, youā€™re alpha! ā¤

How'd you feel about our read today?


Are You Fairly New to Crypto & Web3?

Let us help you wrap your head around this industry thatā€™s constantly transforming.

Take our Free 1-hour Web3 Rabbit Hole Course to learn the foundational components you need to start building and investing successfully.



Join us on Discord | Follow us on Twitter

Advertise with Web3 Academy

Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.

Loading...
highlight
Collect this post to permanently own it.
Web3 Academy logo
Subscribe to Web3 Academy and never miss a post.
#cryptocurrency#web3