Does BitcoinSV’s Decline Show Crypto Industry Can Regulate Itself?

Wilfred Michael 

Wilfred Michael

News reporter

16 April 2019,
14:09
Does BitcoinSV’s Decline Show Crypto Industry Can Regulate Itself?

Within the last two years, efforts to regulate the emerging cryptocurrency industry has intensified across different regions.

In the middle of that, however, the industry which was built with the principle of decentralization is showing its power to self-regulate without the intervention of any government.

The case study is the move which has resulted in a free fall in the value of BitcoinSV, the cryptocurrency created from a controversial split of the Bitcoin Cash network in November 2018.

At the time of writing this report, the value of the cryptocurrency has dropped by over 20% with prices moving from $72 to $55 at press time. It's market cap has also moved from $1.2 billion $984 million at press time.

The Reason Behind BitcoinSV's Sudden Decline

For the basics, the BitcoinSV camp is led by Craig Wright, a controversial figure in the cryptocurrency industry since he started to claim he was Satoshi Nakamoto, the inventor of Bitcoin.

Following the hardfork in November, that led to the birth of BitcoinSV, Craig Wright reportedly intensified efforts to prove that the new cryptocurrency is the real Bitcoin.

Well, the intensified claims to be Satoshi Nakamoto and labeling Bitcoin as Bitcoin Core didn't seem to go down well with the crypto community.

It is worthy to note that the crypto industry mostly comprises of Bitcoin proponents, which meant that any attack would likely culminate to fight back, a role usually carried out by government regulatory bodies.

Well, the Bitcoin camp did fight back with a series of post on Twitter and other social media channels labeling Craig Wright as a Fraud using the hashtag #CraigWrightIsAFraud and also infamously naming him “Faketoshi.”

Craig Wright reportedly fought back against some notable figures who made the posts on social media and requested via a legal letter that they tender an apology and acknowledge that He is Satoshi Nakamoto.

Ethereum Co-founder, Vitalik Buterin, Bitcoin Podcaster, Peter McCormack and an anonymous user with the title, Hodlonaut were among those who got the libel lawsuit threats from Craig Wright.

Remarkably, it was also the series of lawsuit threats that triggered what may turn out to be one of the most significant self-regulatory moves by the crypto industry — in other words, doing the job of deciding which cryptocurrency stays and which one doesn't.

Crypto Industry Fights Craig Wright's Satoshi Claims

Following the initial lawsuit against the pseudonymous user hodlonaut, the crypto community raised over $28000 in a campaign to help whoever it was to fight the case against a wealthy Craig Wright.

It was also at the middle of the fundraising campaign that Changpeng Zhao, founder of popular cryptocurrency exchange, Binance promised to delist BitcoinSV from their platform if Craig Wright and his lawyers continued sending the lawsuit letters.

Well, we mentioned earlier that the Bitcoin camp has the highest number of followers, so it came as a little surprise when enthusiast, Anthony Pompliano tweeted a message asking crypto exchanges to delist BitcoinSV as a way to show their solidarity for the one Bitcoin that truly mattered.

Fast forward to roughly 72 hours later, Binance announced that it was going to delist BitcoinSV from its exchange, the highest exchange by trading volume in the cryptocurrency industry.

Various exchanges such as Blockchain.com, Shapeshift and SatoWallet followed suit, with only OKEx announcing at press time that it would not delist BitcoinSV.

The consecutive delisting is responsible for BitcoinSV's decline on the day, with the #DelistBitcoinSV still trending on Twitter.

Only time will tell whether the self-regulatory action that the cryptocurrency industry has taken will lead to the condemnation of what is already one of the most controversial coins in the history of the emerging space.

Even it doesn't produce that outcome; it will be a powerful reminder that the cryptocurrency industry has the potential to regulate itself while authorities in different countries continue the journey to formal regulations.

 

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