Bitcoin is also plunging more than 5% after Binancecoin plunged more than 8% due to news that the Securities and Exchange Commission (SEC), the U.S. securities regulator, is investigating the listing process of Binancecoin, the fifth-largest cryptocurrency.
As of 2:30 p.m. on the 7th Bitcoin plunged 5.54% from 24 hours ago to $29,513 on CoinMarketCap, a global coin market relay site.
Until this morning, Bitcoin had soared more than 5% to surpass $31,000 on expectations that the U.S. inflation rate would fall. It was the first time since the 1st that Bitcoin surpassed 31,000 dollars.
However, shortly after the news broke that the SEC had launched an investigation into Binancecoin, Bitcoin turned around sharply and eventually collapsed $30,000.
Binancecoin also began to plunge shortly after the news that the SEC investigation was underway, and at this time, it plunged 8.15% from 24 hours ago to $282.
Bloomberg reported on the same day that the SEC is investigating whether Binance’s issuance of Binance in July 2017 constitutes “selling unregistered securities.”
According to the SEC’s investigation, if the sale of Binance’s tokens turns out to be “issuing unregistered securities without procedures,” the SEC can take legal action against Binance.
“As the cryptocurrency industry grew rapidly, there were no clear regulations at the time of listing,” a Binance spokesman said. “We will comply with the new guidelines and meet all the requirements set by regulators.”
As Binancecoin plunged, Bitcoin as well as other cryptocurrencies are plunging at once. Ethereum, the second-largest market capitalization, is plunging 6.49 percent, Solana 9.87 percent, and Abelan City 12.48 percent, respectively.
