Wow...
Whats happing with Centra and what can we learn.
So apparently two Centra Co Founders were arrested regarding fraudulent activity during the ICO, appropriating investors and selling unregistered securities.
The co-founders of the Centra virtual currency, Sam Sharma and Robert Farkas, were arrested on Sunday, a day before the Securities and Exchange Commission released a complaint against the men and announced that it was halting the project.
The complaint alleges that the men “engaged in an illegal unregistered securities offering and, in connection with the offering, engaged in fraudulent conduct and made material misstatements and omissions designed to deceive investors in connection with the offer and sale of securities in the Centra I.C.O.”
full story here and on many other pages/sites
https://www.nytimes.com/2018/04/02/technology/virtual-currency-arrest-centra.html
Since news of the arrest has broken the price of CTR has fallen over 60%, highlighting the amount of weak hands in the space. I can imagine almost immediately upon hearing the news many weak hands flocked to the exchanges to panic sell and fuel the fire even more, the result?
A 69% drop over 24hrs.....
Although down 85% over 30 days it now seems the sellers have ran out of steam and its actually bouncing back slightly.
The Centra support team had this to say,
"Hi, we are aware about the SEC issue and the company is dealing with it. There will be speculations and it might affect the CTR price, we assure you that we are closely working on it. Tomorrow the team will speak/have a meeting with our General Council and we will be releasing an official statement very soon. We, Centra employees are here and the company is still here. Thanks"
It would seem the arrests have little impact on the company or its platforms participants (have to wait on SEC halting the project i guess?) yet we still saw a massive panic sell. It's beyond me that people cant even dig a little deeper upon hearing some news and stay informed instead of panicking and immediately selling their coins.
For me, the last couple of hours have shown just how many people in the space still react poorly to news and let their emotions spill in to the market. We all know the Crypto space doesn't have many experts if any at all, so its vital moving forward that people learn from days like this. Watching Centra and the CTR price will be extremely interesting over the next several months and a lot can be leaned from what happens moving forward.
I'd imagine most mainstream media outlets will have a field day with this as we know all to well they prefer the negative news over positive.
Moral of the story is to not panic, NEVER PANIC... we need to help each other stay informed and educated so negative news doesn't always lead to a negative market that is flooded with the emotions of panic sellers, remain strong through the dark times and keep the faith.
Let us know what you think of the Centra news and what it might mean for the company, platform and its participants.
Written by Scott Pratt @LoveForCrypto
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