Smaller cryptocurrencies fall amidst the storm of controversy that has engulfed Facebook’s digital currency initiative. The entire crypto sector has more or less been taking heat, with price fluctuations moving into the negative area. Countries around the world are now uniting in drawing up stronger regulations for the greater digital assets market.
Amidst all of this tumult, the smallest players in the digital coin space have been taking the greatest hits. Apart from the major coins such as Bitcoin and Ether, countless start-up coins have been swallowed by a market that is looking to grow increasingly dim and hostile.
With Donald Trump and his administration coming out recently in open hostility to cryptocurrencies, it is quite clear that the industry is in quite a tough spot altogether. Bitcoin shed nearly a third of its value after scoring an eighteen month high. This comes in the heels of talks of regulatory expansions for the crypto space, spreading from the United States all the way to Europe.
Just a few days ago, the G7 group held a discussion surrounding the digital currency space, agreeing to enforce stricter controls over the nascent industry. The governor of the Bank of Japan came out with information that a task force overseen by the G7 was probably developing its own oversight of Libra and the crypto space.
Meanwhile, things back in American shores were also quite gloomy: Facebook’s executives in charge of the Libra initiative were drawn in before the Senate and grilled for more than an hour, with the dominant atmosphere being one of negativity and suspicion.
Analysts note that the price flows for the smaller currencies are tied to the fate of Bitcoin. With Facebook’s Libra initiative and Bitcoin now taking hits, the smaller coins have also seen unnecessary cut backs in their price values.