This article is excerpted from Tom Yeung\u2019s Moonshot Investor newsletter. To make sure you don\u2019t miss any of Tom\u2019s potential 100x picks, subscribe to his mailing list here<\/a>.<\/em><\/p>\n Source: Filippo Ronca Cavalcanti \/ Shutterstock.com<\/p>\n<\/div>\n On Wednesday, hawkish Federal Reserve news sent both stock and crypto markets spiraling. Crypto markets would instantly lose $200 billion, while stocks would shed $1.4 trillion.<\/span><\/p>\n I\u2019ve been warning investors since October that Fed Chair Jerome Powell <\/span>was taking away the punch bowl<\/span><\/a>.<\/p>\n \u201cAs we enter the later innings of the crypto bull run, it\u2019s time to selectively take profits.\u201d<\/span><\/p>\n But the market volatility has also hidden another disquieting trend:<\/span><\/p>\n #ETHGate<\/span><\/i><\/p>\n Though the hashtag has existed on social media since last year, the past several days have seen \u201cETHGate 2022\u201d gaining significant traction. And with its $400 billion market capitalization, Ethereum is now worth almost six times more than Enron ever was.<\/span><\/p>\n Source: Twitter.com<\/p>\n<\/div>\n Today\u2019s <\/span>Moonshot Investor <\/span><\/i>will be an unusual one. Rather than consider specific picks, we\u2019ll take a look at this offbeat theory, and what it means for crypto investors.<\/span><\/p>\n Source: Catalyst Labs \/ Shutterstock.com<\/p>\n<\/div>\n \u201c[Ethereum] whales\u2026 could have possibly created multiple fake identities and accounts,\u201d explained one Twitter commentator, \u201cto make it look like the Ethereum Network and the initial coin offering was truly decentralized when in fact \u2026 it was manipulated to look more decentralized.\u201d<\/span><\/p>\n Meanwhile, other coins have gotten shortchanged. In December 2020, the SEC filed a lawsuit against XRP parent Ripple Labs<\/strong> for \u201craising $1.3 billion through an unregistered, ongoing digital asset securities offering.\u201d That lawsuit is ongoing.<\/span><\/p>\n The theory <\/span>does<\/span><\/i> have some merit. Financial regulators are notoriously inconsistent when it comes to choosing which initial coin offerings (ICOs) to label \u201cunregistered securities offerings.\u201d For-profit corporations from Binance<\/strong> (CCC:BNB-USD<\/u><\/strong><\/a><\/span>) to Crypto.com<\/strong> (CCC:CRO-USD<\/u><\/strong><\/span>) have been free to create centralized tokens like BNB and CRO, while others like Ripple have been nailed to the wall.<\/span><\/p>\n The rules are inconsistent even among lookalike cryptos. Ripple rival <\/span>Stellar <\/b>(CCC:XLM-USD<\/u><\/strong><\/a><\/span>) seems to have escaped the SEC\u2019s wrath by registering as a non-profit and publishing its source code. Those with siblings might relate it to how the youngest always seems to get away with everything.<\/span><\/p>\n Longer-term however, public anger <\/span>could<\/span><\/i> turn the legislative tide. Congress introduced 35 cryptocurrency-focused bills in 2021, and anyone who\u2019s traded Ethereum is intimately acquainted with the ridiculous fees the protocol can charge.<\/span><\/p>\n<\/div>\n Those looking to buy $500 worth of Ethereum tokens or an NFT can easily spend $120 or more on \u201cGAS\u201d fees\u2026 before losing another 3% to 4% in slippage. Stricter legislation will eventually turn mega-cap cryptos into regulated assets.<\/span><\/p>\n The SEC has struggled to make a strong case against XRP, particularly given its previous classification of Bitcoin and Ether as \u201cnon-securities.\u201d Multiple spokespeople for the SEC have since done an about-face.<\/span><\/p>\n \u201cI don\u2019t want to be overly technical but \u2026 there is no action that [the SEC] took to say Bitcoin is not a security, Ether is not a security,\u201d the SEC\u2019s lawyer said earlier last year.<\/span><\/p>\n The lack of enforcement action has since sent XRP on a nascent recovery, up 130% since last year.<\/span><\/p>\n Though #ETHGate won\u2019t directly impact XRP\u2019s prices, it underscores the uphill battle the SEC now faces in proving wrongdoing by Ripple Labs.<\/p>\n The protocol also supports 97% of the world\u2019s NFTs, according to data from DappRadar.<\/span><\/p>\n<\/div>\n Though ETH has dropped from first place, it remains the <\/span>Moonshot Investor\u2019s<\/span><\/i> No. 3 pick<\/span> for its relative usefulness and stability.\u00a0<\/span><\/p>\n Click here to learn more about Ethereum<\/span><\/a>.<\/span><\/p>\n \u201cEthereum-Gate\u201d is still a small movement on the fringes of social media. Many of the allegations revolve around insider dealings early on, when Ethereum traded under $1.\u00a0<\/span><\/p>\n But anger on social media has a habit of snowballing. And #ETHGate highlights some well-founded reasons for anger.<\/span><\/p>\n I closed out my Powell-focused newsletter in October with a warning to investors:<\/span><\/p>\n \u201cThose expecting 2021-style returns on BTC next year should reconsider the odds. With inflation expectations rising, it\u2019s only a matter of time before the Fed ends the show.\u201d<\/span><\/p>\n<\/blockquote>\n Now that lawmakers on Capitol Hill are turning their attention to crypto, it\u2019s only a matter of time before the lowest-quality coins see their day of reckoning too.<\/span><\/p>\n Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he\u2019s naming 17 of his favorite Reddit penny stocks.\u00a0Claim your FREE COPY here!<\/u><\/a><\/em><\/p>\n![\"A](\"https:\/\/investorplace.com\/wp-content\/uploads\/2021\/10\/ethereum-1600-300x169.jpg\")
<\/p>\n#ETHGate Breaks The Internet<\/h3>\n
![\"A](\"https:\/\/investorplace.com\/wp-content\/uploads\/2022\/01\/yeung-1-6-1.png\")
<\/p>\n![\"An](\"https:\/\/investorplace.com\/wp-content\/uploads\/2021\/11\/astronaut-moon-sitting.png\")
<\/p>\n1. What is #ETHGate?<\/h2>\n
2. Is #ETHGate Real?<\/h2>\n
3. What does #ETHGate mean for Ethereum?<\/h2>\n
4.What does #ETHGate mean for XRP?<\/h2>\n
5. What is Ethereum?<\/h2>\n
What Does #ETHGate Mean For Your Wallet?<\/h3>\n
\n
FREE REPORT: 17 Reddit Penny Stocks to Buy Now<\/strong><\/em><\/h3>\n