Ethereum price shows little reaction to Canadian plans to deploy Ethereum-based fundraising platform

  • Ethereum lacks momentum ahead of $1,000
  • Canadian exchange plans to launch Ethereum blockchain platform

Ethereum price is driven by the same fundamentals as the other major cryptocurrencies: better regulatory climate, partially dispelled fears about crypto bubble burst, lesser risk aversion on global markets.

Canada dives into financial innovation

Another Ethereum-specific piece of news came from Canada where the Toronto-based Canadian Securities Exchange (CSE) plans to deploy the Ethereum blockchain platform for clearing and settling securities. 

According to the press-release, published on the official website of the exchange, "the platform will enable companies to issue conventional equity and debt through tokenized securities, which would be offered to investors through Security Token Offerings (“STOs”). Unlike blockchain-based cryptocurrencies, the STOs will be subject to full regulation by applicable securities commissions".

In other words, the new platform will be used to hold fundraising events, much like ICO, but subject to full regulation and ongoing oversight. The company believes that the service will exploit the benefits of new technology while providing investors with adequate protection.

“Our platform represents an intersection between blockchain and the capital markets that delivers on blockchain’s promise to disrupt conventional transaction and record-keeping mechanisms, thereby providing tangible benefits for market stakeholders. By harnessing this technology, the potential exists to extend corporate finance beyond the limits of traditional equity and debt offerings” - Richard Carleton, Chief Executive Officer of the CSE commented.

An exact launch date is to be set, as the CSE has to receive approval from Canadian regulators.

ETH/USD technical picture

ETH/USD did a good job, but the coin is needed to surpass a strong resistance at $1,000, strengthened by 50-DMA. A break above could see the Ethereum price rise towards $1,100 region. On the downside, the nearest support is seen at $870 and at $779 (Sunday’s low). 

ETH/USD, daily chart

ETH/USD daily chart

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