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U.S. agency’s virtual currency oversight faces court challenge

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BOSTON (Reuters) – An obscure virtual currency called My Big Coin is now at the center of a closely watched case that could determine whether the U.S. Commodity Futures Trading Commission has the authority to combat fraud associated with cryptocurrencies.

FILE PHOTO: Cryptocurrency miners are seen on racks at the HydroMiner cryptocurrency farming operation near Waidhofen an der Ybbs, Austria, April 25, 2018. REUTERS/Leonhard Foeger/File Photo

Amid a crackdown on virtual currency scams, the U.S. regulator in January sued technology entrepreneur Randall Crater and a company he founded, alleging they perpetrated a $6 million fraud on people who wanted to buy My Big Coin.

Lawyers not involved in the lawsuit say that Crater’s case raises a novel challenge to CFTC oversight of cryptocurrencies, which are not backed by any central bank.

His lawyers argue the CFTC has no authority over the virtual currency because it is not a commodity like wheat or cotton or a service that is traded using futures contracts, the typical focus of the agency’s enforcement regime.

FILE PHOTO: A cryptocurrency mining computer is seen in front of bitcoin logo during the annual Computex computer exhibition in Taipei, Taiwan, June 5, 2018. REUTERS/Tyrone Siu/File Photo

“Our argument boils down to the fact that because My Big Coin does not have future contracts or other derivatives trading on it, it is not a commodity,” said Katherine Cooper, a lawyer for Crater.

Lawyers watching the case say a ruling against the CFTC could affect its ability to police virtual currency frauds as the only one on which futures contracts are traded in the United States is bitcoin, whose user base of millions dwarfs that of My Big Coin.

“It would have a chilling effect on the CFTC’s application of its powers in this area,” said Gregory Kaufman, a lawyer with the law firm Eversheds Sutherland.

U.S. District Judge Rya Zobel in Boston is set to hear arguments in the case on Thursday. The CFTC declined comment.

Bitcoin, the most popular virtual currency, and nearly 1,630 others exist have a market capitalization of $276.6 billion, according to cryptocurrency market data site Coinmarketcap.

Regulators have expressed concerns about fraud schemes targeting cryptocurrency users, but questions linger about who has jurisdiction over them.

FILE PHOTO: A worker checks the fans on miners, at the cryptocurrency farming operation, Bitfarms, in Farnham, Quebec, Canada, February 2, 2018. REUTERS/Christinne Muschi/File Photo

The U.S. Securities and Exchange Commission has claimed authority over so-called initial coin offerings in which companies sell digital tokens to raise money. A federal judge in Brooklyn is now weighing whether cryptocurrencies can be considered securities.

To date, the CFTC has announced eight cryptocurrency-related cases.

In its lawsuit against Crater and Nevada-based My Big Coin Pay Inc, the CFTC says the defendants misappropriated $6 million from 28 customers they lured by naming their virtual currency to sound like bitcoin and further claiming it was backed by gold.

Lawyers for Crater contend, however, that My Big Coin is not a “commodity” under the Commodity Exchange Act because it is neither a tangible good nor a service on which future contracts are being traded.

The CFTC notes that in March, a federal judge in a different case, U.S. District Judge Jack Weinstein in Brooklyn, ruled for the first time that virtual currencies can be regulated by the agency as a commodity.

But Crater’s attorneys counter that ruling involved bitcoin, for which futures are traded.

Neal Kumar, a lawyer at the law firm Willkie Farr & Gallagher, said Crater may still lose because the Commodity Exchange Act defines services as commodities not just when they currently have futures contracts associated with them but in the future could.

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Criptomonedas

Tiffany Hayden Claims XRP Price Will Eventually Catch Up With Development!

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In a heated debate on Twitter, Financial advisor and XRP enthusiast Tiffany Hayden was embroiled in a discussion around the price of XRP.

CCN News initially tweeted an article regarding PayPal Director Xapo CEO Wences Casares stating ‘One Bitcoin Could Exceed $1 Million in 7-10 years”

The tweet caught the attention of many followers quite noticeably an XRP supporter who speculated their opinions on XRP’s price.

@xrpdoll tweeted “And 1 XRP could exceed $42,000 in 7-10 years!”

This was then met by a barrage of insults indicating XRP could not reach such price due to its market cap.

Which leads to the questions?

Has the bear market brought out the worst in some Cryptocurrency communities spreading relentless toxicity?

And more importantly…

Will there ever be an end to the continuous division between Bitcoin maximalists and XRP Maximalists?

Tiffany Hayden responded to one of the replies adding;

I know the bear market has been difficult, particularly for people who bought at the peak, but the direction and momentum of $XRP have only increased since then. At some point, the price will *finally* reflect that. And then the haters will all scream “price manipulation!”

It is easy to forget during the 2018 bear market that Ripple was one of the few Cryptocurrency projects making significant progress and paving the way for adoption with financial institutions, banks, and payment providers.

Ripples progress has also been unmatched with the confirmation of partnering with over 200 banks worldwide, over 100 financial institutions around 40 countries in six different continents.

Not to mention…

Equally successful provided liquidity for cross border payments using XRP and utilizing payment providers such as Mercury FX and Cuallix – Some of the first customers to adopt xRapid to increase payment speed and make it substantially cheaper for their customers.

A key indication of the innovative strides Ripple was making!

Breakthrough XRP Utility and Academic Advancements

While this market traction has had a profound impact on its customers and clients, Ripple’s year of breakthroughs also expanded beyond the cross-border payments use case.

We saw new utility and diversity spread across the XRP ecosystem. Ripple launched the Xpring initiative in May to build infrastructure and drive growth in blockchain through investments and partnerships. In just half a year, Xpring has helped develop several notable blockchain projects, including SB Projects, Coil, Omni and Securitize.

Conclusion

XRP is currently trading at $0.32 against the USD and currently down 90% from its all-time high around $3.40.

However, whilst it’s easy to recognize the current undervalued price of XRP, investors should be aware that the bear market would not last forever.

The Cryptocurrency space moves in cyclical frequencies and eventually, the price of XRP will catch up with the unwavering development that has occurred during this difficult time.

Do you want to know the key to becoming a successful investor in this market?

Having a long-term outlook on the development of Ripple/XRP and acknowledging this is at least a 5-10 year project.

The price of XRP now will truly be a blessing for those that remained patient throughout this period.

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Bitcoin

Bitcoin (BTC) Closes Below 50 Week EMA But Shorts Decline Around 20%

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The most anticipated event of the week which was the BTC/USD weekly close is now over. The price has just closed below both its 50 Week EMA as well as the 61.8% Fibonacci retracement level. This means that the ongoing weekly candle now has a higher probability of being red and could at least fall towards the 200 Week EMA if not lower. The Stochastic RSI on the weekly time frame shows that Bitcoin (BTC) has not been this overbought since the beginning of the bear market. Even when the price topped in late 2017, the Stochastic RSI was much lower than it currently is. This means that there should be no doubt that the price is poised for a sharp decline, the only question is when.

Bitcoin (BTC)’s close below the 50 Week EMA and the 61.8% Fib retracement level should have been a confidence booster for the bears but the exact opposite has happened. The number of margined shorts has declined around 20% and could continue to decline if BTC/USD trades sideways. Bitcoin (BTC) may be quite close to its true bottom but the fact remains that it is more overbought than it was when the bear market started. Perhaps, the sentiment is also a lot more bullish than it was back then. When the price topped around December, 2017 and the rally slowed down, a lot of people were concerned that BTC/USD had a parabolic run and will not have to come down. This time however, a few pumps to the upside has convinced majority of the bulls that the bear market is over regardless of what the technicals say.

If the rise in BTC/USD was gradual and sustainable with higher highs and higher lows, it would be a bit hard to deny it can’t keep going up even if the price had been overbought short term. However, that is now what has happened. We have seen a clear lack of bullish momentum in the price action. There is too much friction and the price is too weak to break past resistance levels smoothly, but then we see a pump to the upside and the bulls are excited again. However, every time the bulls push after a pump, the whales dump on them. So far, they have allowed the price to rally to trap in as many bulls as possible with their high leveraged positions.

The weekly chart for BTCUSD Shorts shows what is going on. The number of margined shorts has declined to its trend line support as the bulls confidently expect a rally towards $6,000 or higher. The retail bears have been affected by this sudden sentiment shift in favor of the bulls which is why the shorts have declined so heavily. The weekly chart shows that BTCUSDShorts is now long overdue for a strong trend reversal which would see the number of shorts rise again. This means that Bitcoin (BTC) is far from being out of the woods just yet and could see significant downside in the months ahead.

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Criptomonedas

John McAfee Stops Promoting Skycoin Cryptocurrency, a Controversial Token, Despite His Tattoo

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John McAfee, one of the most popular crypto supporters in the space, announced that he is not supporting Skycoin anymore.

This comes after the decision he took to make a tattoo related to the digital asset.

John McAfee Stops Promoting Skycoin

On Twitter, John McAfee explained that he s no longer working or promoting Skycoin. The crypto expert did not provide any further information about it or why he decided to take this decision.

Nonetheless, he mentioned that users could send him a direct message in order to know more about the decision that he took.

In another tweet, he talked about the Tattoo that he did on his body. He said that he will keep it as a reminder that he will still get scammed by “unscrupulous people.” He has also mentioned that they almost drove him to violence.

McAfee started promoting this project back on November 4. In order to increase adoption and show that he was truly devoted to the project. Once McAfee decided to show its support to the digital asset, SKY increased 45% of its value.

At the time of writing this article, SKY is the 203rd largest digital asset in the market. It has a market capitalization of $15 million and each coin can be purchased for $1.12.

Since its all-time high in January 2018, the digital currency lost more than 98% of its value, being one of the biggest losers in the market. BitConnect (BCC), for example, lost 99% of its value after the Ponzi and pyramid scheme handled by the company fell.

McAfee has been promoting different Initial Coin Offerings (ICOs) during several months and it has also offered its support to many different projects and digital assets released to the market.

Today’s Bitcoin (BTC) Price Prediction Plus ETH, XRP and BCH Chart Analysis

Source.bitcoinexchangeguide

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