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Saylor goes full maxi, slamming everything that isn’t Bitcoin

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CEO of MicroStrategy Michael Saylor threw altcoins under a bus, urging regulators to do their part to combat the risky practices of the crypto industry.

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Appeal to the founder of the technical analysis platform Northern TraderSailor told Sven Henrich that a “parade of horrors” is weighing on Bitcoin and regulators should act accordingly.

“Parade of horrors drags Bitcoin down”

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Explaining the “Parade of Horrors” sailor listed three factors that negatively affect the price of bitcoin.

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First, it is the prevalence of fictitious trading in the crypto space. Unlike stocks, there are no specific rules governing the fictitious trading of digital assets.

Washing trade is a form of market manipulation involving the simultaneous purchase and sale of an asset. This practice can create a false picture of what is happening in the market, such as artificially high volume.

This leads to the next factor, which Saylor says is the effect of unregulated exchanges and the market volatility they bring. The head of MicroStrategy went on to talk about the conflict of interest in exchanges acting as both market makers and token holders, combined with fictitious trading and high leverage trading.

“If you had 20x leverage when trading Apple stock without the rules of fictitious trading, Apple would be a much more volatile asset, just like the Nasdaq.”

Finally, Sailor turned to altcoins and said that only bitcoin is a commodity because it does not have an issuer. He added that 19,000 other cryptocurrencies are unregistered securities. The result is multi-hundred-billion dollar “cloud” trading without fair disclosure that is “cross-backed” by bitcoin.

“What you have is a $400 billion cloud of opaque, unregistered securities traded without full and fair disclosure, all of which are cross-backed by bitcoin.”

Regulatory separation of cryptocurrencies on cards

On May 18, Securities and Exchange Commission (SEC) Chairman Gary Gensler told the House Appropriations Committee that bitcoin is a commodity “maybe.”

Currently, in the US, crypto assets are subject to the jurisdiction of the SEC and are dealt with under applicable securities laws.

Speaking to CNBC May 16, Chairman of the Commodity Futures Trading Commission (CFTC) Rostin Behnam said it makes sense to review all cryptocurrencies, classifying each as a commodity or security, and assigning appropriate agency powers accordingly.

“Within that space, I think it makes sense that commodities be regulated by the Commodity Futures Trading Commission and securities by the SEC.”

Behnam said that Bitcoin and Ethereum, in his opinion, fit the definition of a commodity. But there are also “many” other tokens that fall into this category.

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