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XRP ‘Army’ Protests at SEC

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‘Stop the war on crypto!!!’ So says what clearly looks like an American of probably middle to upper middle class in front of the headquarters of the Securities and Exchanges Commission (SEC).

He is joined by dozens of others like him, even a woman, in what may well go down as the very first political crypto protest.

They angry at SEC for claiming that the sales of $1.3 billion of XRP by Ripple and its executives from 2013 to 2020 constitutes an ongoing unregistered offering of securities. The seven years were, according to SEC, a violation of Section 5 of the 1933 Securities Act.

This matter is now to be decided by a judge as a court battle rages with Ripple disputing that it is a security, claiming it is a currency like bitcoin or eth.

They are now going through disclosure. The judge has ordered SEC to disclose pretty much everything related to the decision that concluded XRP is a security.

All this will take at least months, but the ramifications from a civil society perspective will be considerable as the decision goes to the root of investment prohibitions enacted nearly a century ago in this Securities Act 1933.

That creates a society of two classes. The rich, defined as anyone earning above $100,000 a year, are free to do whatever they please in choosing where to invest, including unregistered securities.

The rest are prohibited by the force of the law to invest in anything but publicly traded companies in the stock market.

This case is about Ripple offering its asset to all, including the plebs who are prohibited in investing on whatever they want, and in this specific circumstance it was 50% of the total supply and it was given for free.

Nowadays this is called the airdrop model. The most famous recent one is Uniswap which gave to anyone who used it 800 tokens for free. Those tokens are now worth about $16,000.

Once you create a market through this airdrop, then you raise funds by selling whatever supply you kept. This method of raising the funds is what is illegal, SEC is alleging, and whether it is indeed so will be the judge’s decision.

Making this not quite a Ripple case, but a class case, since it will affect any and all airdrops, and there have been far too many of them including Curve, Yearn, and effectively an entire new tens of billions industry with much promising growth.

With the stakes so high, it isn’t surprising some have taken it upon themselves to make their voice heard in the square.

And while their numbers are small, these are geeks. So by comparison, just two people showed up at MT Gox’s then HQ to protest in 2014 against their loss of a million bitcoin.

Now it’s 10 people, so a five fold increase in geek representation with the real battle of course at court and the even more real one at code.

That’s because this generation is unwilling to stand by these discriminatory investment prohibitions that choke innovation and stratify our society into incompetence by basically killing meritocracy through requiring innovators to fund themselves only from the upper class.

The invention of code levels the playing field and ultimately in this digital age the innovators don’t even need to be known with Nakamoto himself paving the way.

The court therefore will have to decide whether it is appropriate that the force of ancient law is weaponized against a completely new class of innovators, or whether the situation is so different from the age of our ancestors that Congress and only Congress should decide this matter.

For this is fundamentally political and such agency has no right to make law or interpret it, and therefore the judiciary should stand up to it.

Because the case does of course revolve around the facts, but ultimately it concerns fundamentally the very political balancing act of fostering innovation while prohibiting scams which are more a matter of criminal law.

And it also concerns the question of whether there should be one law for the rich and another for the rest in this digital age, an answer only accountable Congress can provide under the ultimate judgment of the citizenry.

Source: https://www.trustnodes.com/2021/05/31/xrp-army-protests-at-sec

Blockchain

Owners Of South African Investment Platform Vanish, Alongside 3.6 Billion USD Worth Of Bitcoin

The owners of the South African crypto company AfriCrypt have reportedly vanished and took off with 69,000 BTC. Largest Exit Scam ever? In April 2021, the two brothers who co-own the investment firm AfriCrypt, turned to their users, stating that the platform has been hacked, leading to a damage of 69,000 BTC, which were worth […]

The post Owners Of South African Investment Platform Vanish, Alongside 3.6 Billion USD Worth Of Bitcoin appeared first on CryptoCoin.News.

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The owners of the South African crypto company AfriCrypt have reportedly vanished and took off with 69,000 BTC.

Largest Exit Scam ever?

In April 2021, the two brothers who co-own the investment firm AfriCrypt, turned to their users, stating that the platform has been hacked, leading to a damage of 69,000 BTC, which were worth 3.6 billions USD at that time. This claim has since then lost most of its credibility, since the brothers cannot be reached anymore.

The South African law firm Hanekom Attorneys, who handle the case on behalf of the victims, believe the incident to be an exit scam, rather than a hack. By their account, employees of AfriCrypt had already lost access to the platform’s backend seven days before the alleged hack. The fact that the owners of AfriCrypt urged investors not to take legal action made the law firm even more suspicious. If proven true, this would make AfriCrypt the largest exit scam in history.

10% Daily Return too good to be true

Reportedly, AfriCrypt attracted new investors by promising them a whopping return of 10% on a daily basis. Additionally, the investment firm promised referral rewards for bringing in more customers. Unrealistically high returns like this should automatically make anyone suspicious, but greed and FOMO drive investors into the arms of fraudulent investment companies and crypto projects.

For the scammers, this is a highly profitable business model, as can be seen by the example of the TRON blockchain. Besides gambling, TRON is notorious for “high risk” investment platforms that typically promise daily returns on the same scale as AfriCrypt, but pull an exit scam shortly after their scheme has gained enough traction.

The success of these fraudulent schemes is a result of the huge influx of new and inexperienced investors over the last months. Just recently, the UK-based Financial Conduct Authority warned against unregulated crypto companies, which operate in a legal grey market.

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Source: https://cryptocoin.news/news/owners-of-south-african-investment-platform-vanish-alongside-3-6-billion-usd-worth-of-bitcoin-54425/?utm_source=rss&utm_medium=rss&utm_campaign=owners-of-south-african-investment-platform-vanish-alongside-3-6-billion-usd-worth-of-bitcoin

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Bitcoin: Everything you need to know about the ‘Magnificent F#^%ery’

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In the words of Michael van de Poppe, “Magnificent fuckery going on today on crypto and Bitcoin”, that does seem to be the case as Bitcoin in the late hours of June 22, fell below $29,000 and created a new wave of panic in the market. Analysts and traders had been holding $29k as an important support level ever since BTC started to fall. While the king coin did bounce back in a very short span to trade at $34,156 at the time of this report, it established new important levels in the market.

How much lower can Bitcoin go?

Since the BTC market’s volatility has roused every investor, analysts have lost hope in the coin to maintain close support. As the coin reached a low of $28,800 yesterday, it negated all gain that the coin had made since the beginning of 2021. At the start of this year, BTC was at $29,400 and as the coin fell below that point, $24k was seen as the only strong support going forward. Michael van de Poppe furiously tweeted,

“Let’s have that final crash to $24K and get over it #Bitcoin [sic].”

Next critical support level | Source: Michaël van de Poppe

However, this dip helped identify the next important levels for Bitcoin. According to Poppe $35,500 is the next crucial breaker. This is because the previous breakout, in Feb 2021, occurred at the same mark. For the coin to engage in a solid bull run, BTC will have to breach that level. 

In another story, the dip confirmed the speculated head and shoulder (HnS) formation as the fall helped establish an accurate neckline. According to popular trader DonAlt, the HnS pattern created the neckline at $32,000. Historically, the neckline has been observed to mark an important breakout level as the coin usually bounces upwards from it. Nonetheless owing to the volatility, the range between $20k and $32k can rustle Bitcoin’s movement in either direction.

BTC Head and Shoulder formation | Source: DonAlt

In an interesting development, Bitcoin’s present movement seemed to have negated the June 19 death cross’s effect. Trader and analyst Rekt Capital brought this to attention, as the 4-year cycle (4YC) begins to move in ways expected but not as the death cross suggests.

Based on previous observations, the recent death cross should have had BTC retrace towards the $18k – $20k levels. Even though the levels do represent the 4-year cycle level (red line), in order to reach them, BTC will have to lose the active 4YC level of $29,000 (black line). 

The 4-year cycle pattern | Source: Rekt Capital

Why is everyone selling?

Following the dip, panic selling ensued and its effects could be observed very clearly on the market. The sudden burst of selling by short-term holders turned in favor of long-term holders as they started accumulating heavily. Similarly, the number of active Bitcoin addresses came down significantly reaching a 14-month low of 43,639.482 (ref. Glassnode 7D MA chart).

Long term and short term holder’s movement | Source: Michaël van de Poppe

Falling Bitcoin active addresses | Source: Glassnode

Moving forward investors should watch the aforementioned levels in determining their stance on buying/selling BTC. Just make sure the volatility doesn’t rattle you.


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Source: https://ambcrypto.com/bitcoin-everything-you-need-to-know-about-the-magnificent-fery

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Is a Bitcoin Crash on the Horizon as Mempool Clears ?

Bitcoin Mempool Crash

Rate this post The Bitcoin Memory Pool or Bitcoin Mempool has cleared out for the first time since November 2020, signaling an impending crash in the largest cryptocurrency’s value. The trend was highlighted by Timothy Peterson, an investment manager at Сane Island Alternative Advisors, who suggested the clearing is a sign of lower demand for BTC. Bitcoin Mempool Is a Great Indicator of a Potential Crash Peterson noted that the primary cryptocurrency’s mempool is a great indicator of bubbles in the market. Clearing of the mempool is indicative of reduced demand for the digital asset, which eventually creates pressure on its prices and forces them to pull back.  Explaining this effect, Peterson wrote, “Right now there is low demand.  This puts downward pressure on price.  Price *should* adjust down to Metcalfe value over the coming months, but leverage and inertia may help prop it up.” For those not in the know, the Bitcoin Mempool is akin to a waiting room for all unconfirmed transactions on the network before they are aggregated to create a block. As Peterson puts it, “You can think of the mempool as demand for space on the #bitcoin blockchain.” Interestingly, the clearing of Bitcoin’s mempool coincides with China’s clampdown on mining activities in its country, which resulted in a major hash rate dump. It’s worth noting that a stable mempool suggests that the network has enough mining power to comfortably support all transactions. If the hash rate declines, it becomes difficult for existing miners to cope with it. Mempools Brimming With Transactions Coincide With Bull Markets Historically, the accumulation of a large number of pending transactions in Bitcoin’s mempool has pointed at a bull market.  For instance, in February the total number of transactions in the mempool exceeded 125,000 — which represents 149 megabytes of data — that could fill up 107 blocks. Before that, in December 2020, Bitcoin’s mempool had more than 143,000 transactions lined up for processing. Both these instances occurred when Bitcoin markets were bullish.  

The post Is a Bitcoin Crash on the Horizon as Mempool Clears ? appeared first on Cryptoknowmics-Crypto News and Media Platform.

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The Bitcoin Memory Pool or Bitcoin Mempool has cleared out for the first time since November 2020, signaling an impending crash in the largest cryptocurrency’s value. The trend was highlighted by Timothy Peterson, an investment manager at Сane Island Alternative Advisors, who suggested the clearing is a sign of lower demand for BTC.

Bitcoin Mempool Is a Great Indicator of a Potential Crash

Peterson noted that the primary cryptocurrency’s mempool is a great indicator of bubbles in the market. Clearing of the mempool is indicative of reduced demand for the digital asset, which eventually creates pressure on its prices and forces them to pull back. 

Explaining this effect, Peterson wrote, Right now there is low demand.  This puts downward pressure on price.  Price *should* adjust down to Metcalfe value over the coming months, but leverage and inertia may help prop it up.”

For those not in the know, the Bitcoin Mempool is akin to a waiting room for all unconfirmed transactions on the network before they are aggregated to create a block. As Peterson puts it, “You can think of the mempool as demand for space on the #bitcoin blockchain.”

Interestingly, the clearing of Bitcoin’s mempool coincides with China’s clampdown on mining activities in its country, which resulted in a major hash rate dump. It’s worth noting that a stable mempool suggests that the network has enough mining power to comfortably support all transactions. If the hash rate declines, it becomes difficult for existing miners to cope with it.

Mempools Brimming With Transactions Coincide With Bull Markets

Historically, the accumulation of a large number of pending transactions in Bitcoin’s mempool has pointed at a bull market. 

For instance, in February the total number of transactions in the mempool exceeded 125,000 — which represents 149 megabytes of data — that could fill up 107 blocks. Before that, in December 2020, Bitcoin’s mempool had more than 143,000 transactions lined up for processing. Both these instances occurred when Bitcoin markets were bullish.

READ  Bitcoin Whales Crash Price Using Same Dirty Tactics & Was Satoshi A Cartel Lord?

#Bitcoin Bubble #Bitcoin Crash #Bitcoin Mempool

Source: https://www.cryptoknowmics.com/news/is-a-bitcoin-crash-on-the-horizon-as-mempool-clears/

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