Thursday, September 21, 2023

Long-Term Bitcoin Holders Unfazed by Recent SEC Accusations Against Binance and Coinbase

Data provided by Glassnode reveals that the percentage of Bitcoin supply sent to trading platforms by long-term holders accounts for a mere 0.004% of the total. This figure underscores the significant inactivity of long-term Bitcoin holders amid intensifying market pressures, demonstrating an apparent indifference to the regulatory accusations faced by leading cryptocurrency exchanges, Binance and Coinbase.

Despite apparent market strain and uncertainty, these holders remain remarkably composed amidst these allegations. This could indicate a lack of concern over the potential impact of these charges, or perhaps a strong belief in the long-term value of Bitcoin, rendering them relatively immune to short-term market fluctuations and events.

On June 5, the U.S. Securities and Exchange Commission (SEC) lodged a lawsuit against cryptocurrency exchange platform Binance and its founder, CZ, for alleged violation of U.S. securities rules. On the subsequent day, June 6, the SEC proceeded to file charges against Coinbase at a federal court in New York.

The SEC contends that Binance-related tokens such as BNB and BUSD, alongside several other tokens including Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC, are indeed securities. Apart from these, the SEC argues that other crypto assets traded on and Binance.US, including Filecoin’s FIL, Cosmos’ ATOM, Sandbox’s SAND, Decentraland’s MANA, Algorand’s ALGO, Axie Infinity’s AXS, and Coti’s COTI tokens, were “offered and sold as securities.”

In its lawsuit against Coinbase, the SEC identified 13 cryptocurrencies which included the previously classified SOL, ADA, MATIC, SAND, and AXS, and six more: Chiliz (CHZ), Flow (FLOW), Internet Computer(ICP), Voyager Token (VGX), and Nexo.

Over the weekend, most altcoins, especially those alleged as securities by the SEC, experienced a significant crash. Yet, despite these market upheavals, the data suggests that long-term Bitcoin holders remain largely undeterred by the current climate, possibly indicating a steadfast belief in Bitcoin’s resilience and long-term prospects.

This news event will continue to be a focus of the cryptocurrency market, as the legal challenges and their potential consequences could shape the landscape of cryptocurrency regulation and adoption in the future.

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