ShapeShift AG, a company that offers global trading of a variety of digital assets via web and mobile platforms, has announced that it will launch a new membership program requiring basic KYC (Know Your Customer) information — with the identity-collection requirements soon becoming “mandatory” in the coming months.
The news has come as a shock to many, given that CEO Erik Voorhees has long been both a Bitcoin proponent and entrepreneur. ShapeShift has also been a popular peer-to-peer platform for cryptocurrency exchanging without bonafide accounts.
As noted by Bloomberg, this has led many to predict the demise of ShapeShift — something Voorhees unsurprisingly dismissed. “I’ve also lived through many people declaring the end of Bitcoin,” Voorhees wrote in an email responding to questions. “Ultimately, digital assets and digital finance will dominate the planet, and we are here to help make that happen regardless of the various naysayers.”
The far-from-good news coming from ShapeShift also coincides with a deeply negative mood currently affecting the cryptocurrency market.
Yesterday, in a matter of hours, Bitcoin (BTC) saw $1000 shaved off its per-coin valuation. At the time of this writing, one bitcoin is trading at $$6,412.94 — down 12 percent over the last 24 hours.
Individuals who bought into the hype brought on my mainstream media outlets and YouTube channels likely found themselves taking a heavy loss — particularly if they decided to go long with leverage.
Of course, the sell-off in the Bitcoin is not particularly surprising.
Bitcoin’s latest weeks-long rally was unconvincing at best, with low volume present and many indicators suggesting the first and foremost cryptocurrency was spending too much time in overbought levels.
Those looking to short the market yesterday were rewarded handsomely, and the sell-off should serve as a stark reminder that there is always money to be made — even in a bear market.
What do you think about ShapeShift’s impending KYC requirements? Do you think Bitcoin is set to collapse to a new low for 2018? Be sure to let us know your thoughts in the comments below!
Images courtesy of Shutterstock, CoinMarketCap.
[Full Disclosure: The author of this article holds and trades Bitcoin (BTC).]
[Disclaimer: This article should not be taken as financial advice. Neither BeInCrypto nor the author should be held responsible for any financial decisions, gains, or losses. Readers are always encouraged to do their own research before making any investment decisions.]