Veritaseum (VERI), a cryptocurrency listed at number 69 on Coinmarketcap, has seen a price surge amid a strong market decline led by Bitcoin. At the time of writing, Veritaseum has risen almost 7% in the last 24 hours to $77.65. However, a few hours earlier, the coin added nearly 33% in only 5 minutes to reach $104.82, illustrating once again the volatile nature of cryptocurrencies, especially those with small capitalization.
The reason behind the surge was that the startup’s application for a broker/dealer license has been accepted by US regulators, according to a tweet posted by Reginald (Reggie) Middleton, Veritaseum’s de facto executive officer with the official title “disruptor-in-chief.”
https://twitter.com/ReggieMiddleton/status/1005861532104843264
Investors reacted immediately, probably misinterpreting the term “accepted,” which does not mean “approved” by a US regulator. To avoid misunderstandings, Middleton posted another tweet, explaining the difference in terms and hinting this was only the first phase of the long and challenging regulatory path.
https://twitter.com/ReggieMiddleton/status/1005867197078654977
Soon after the second tweet, VERI shed 22% in about 20 minutes, falling from $102 to $79.58 as the market assessed the news. The coin has been trading sideways since then.
Veritaseum’s price increase comes at a time when the crypto market is experiencing a deep correction, with Bitcoin losing 7% and fluctuating at around $6,975. In Coinmarketcap’s top 100 coins, only VERI has been drawing a green line. The reason behind the general downtrend seems to be a hacking attack against South Korean exchange Coinrail, which has lost 70% of its assets in altcoins.
VERI is an ERC20-based token that came out a year ago. The blockchain-oriented company behind it was founded in 2014 as a project to leverage the technology for capital markets.
This article appeared first on Cryptovest