SEC Is Rallying International Cooperation To Crackdown On Dodgy ICO Token Sales | ELEVENEWS
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SEC Is Rallying International Cooperation To Crackdown On Dodgy ICO Token Sales

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SEC Rallying International Cooperation To Crack Down On Dodgy ICOs

initial coin offering (ICO) sector has been instrumental in setting up the crypto industry. Coins, small and big, have been able to present their case for public attention and funds. This has led to some extraordinary gains, both in terms of financial, for the initial backers, and the technology offered by these projects. However all this, unsurprisingly, has attracted unwanted attention from scammers and con artists. Things today are at a stage where more than 75% of ICOs in 2017 were marked as scams. This year almost $5 million was lost to some sort of a con job. Thus when the head of U.S. Securities and Exchange Commission (SEC) discussed the importance of international cooperation to ensure successful investigations into these plays and general vigilance with the ICO sector, it was well received.

Certa Bonum Certamen

Speaking at the prestigious Harvard Law School, Steven Peikin, co-director of the enforcement division was discussing the challenges faced by his team when dealing with the unenviably “daunting task of ferreting out misconduct and, where appropriate, recommending civil enforcement actions that variously seek injunctions or cease-and-desist orders, penalties, disgorgement of ill-gotten gains, suspensions and bars of bad actors, and the temporary suspension or delisting of securities.”

In his speech, the head of SEC discussed the two most common types of violations of the securities law that these offerings typically try to pull off. The first one might meet the textbook definition of what a security is, but as he points out, it is ” being sold, brokered, or traded to U.S. investors without complying with the registration requirements of the federal securities laws.” The second is more damaging to the whole industry, where “ICOs appear to be simply outright frauds — where the issuers are using excitement around the crypto-asset space to simply rip off money from investors.”

Mr. Peikin had no illusions about the possible hurdles in the pursuit of justice. However, he was confident that, with international collaboration, they will be able to fight the good fight and bring fraudulent ICOs to justice. The simple fact that many of these sham offerings are located outside borders of the U.S. makes the help of overseas regulatory bodies essential. The SEC feels this helps everyone as the money that is ripped off, is from investors everywhere.

Canada Shows How It Is Done.

To highlight his point about international assistance, Mr. Peikin noted its immense value to the SEC in regulating the ICO sphere. He gave the example of the friendly Canadian neighbors, where regulators in Quebec, the Autorité des marchés financiers actively assisted his team. This was directly responsible for exposing the fraudulent Plexcoin token sale and allowed them to charge two Canadian residents. This he hopes will let them set a precedent and help them foster a better understanding with other regulators so that they can develop other cases.

Its Still A High-Risk Investment

From a modest $95 million, in 2016, ICOs have raised more than $20 billion today. This astronomical rise has been due to the booming interest in blockchain and allied fields. Although the number of ICOs have recently, as Mr. Peikin suggested, “exploded from a mere concept to a phenomenon.” It is still like any other industry, a perilous venture.

“The growth in the ICO market can obscure the fact that these offerings are often high-risk investments,” he warned. “The issuers may lack established track records. They may not have viable products, business models, or the capacity for safeguarding digital currencies from theft by hackers. And some of the offerings can be simply outright frauds.”

The industry has been crying out for stricter regulations and any cross-border backing that hinders the acts and actions of those with nefarious intentions, is always welcome. Whether this is a one-off act or the building blocks of a shared future remains to be seen.

Bitcoin

Bitcoin-Related Stocks Soar In Stock Market; Is Bitcoin Responsible?

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The United States stock market on Monday saw a different dimension related to price movements of stocks. Analysis and price charts on the 24th June 2019 showed that virtual currencies Bitcoin-related stocks soared immeasurably higher than their fiat counterparts. This is coming after Bitcoin was seen to have temporarily broken the $12,500 resistance level and settled above it. This remarkable price surge seen in Bitcoin was the first recorded in about 15 months, and this made it a fast buying material.

Blockchain Relatives Stocks

Grayscale Bitcoin Investment (GBTC) is a virtual currency which is linked to the price of Bitcoin. The stock must have caught the bullish fever and followed every of Bitcoin’s upward waves. The stock was seen to rise temporarily by 13%. Grayscale Bitcoin Investment appeared to have few other supporters with similar blockchain relationships. Riot Blockchain, DPW Holdings, as well as Marathon Patent Group also made rapid uptrends as they all shined in bright green. All these stocks doubled their prices before the closing hour.

On the other hand, Peter Schiff an American stockbroker and financial commentator says

Both gold and Bitcoin prices have risen recently, causing many to erroneously conclude that the two are rising for the same reason. But stock and bond prices are also rising. Bitcoin and stocks are rising as speculative assets, while gold and bonds are rising as safe havens.

Bitcoin’s aggressive turnaround

Bitcoin has particularly moved up in a very aggressive bullish rally which saw it recording a new all-time high within the past 15 months. At the moment, no one can exactly predict Bitcoin’s next line of movement but many are very hopeful and the optimism is very much present. Bitcoin is expected to make more radical price surge, eventually surpassing its 2018 all-time high of $20,000.

Alts Waiting To Join The Rally

However, as bitcoin excelled in all ramifications, taking into consideration its market price and capitalization, this is not to be said of alt coins which seem to have been left behind in this series of radical movements. Popular alts like Litecoin is still trying to nurture the common touch.

At the time of writing this article, Bitcoin had doubled its price in about 5 weeks period and had also doubled its market cap in just a few days. This new development also steered arguments and criticism from Bitcoin’s antagonists who seem to be more interested in Gold.

Bitcoin Versus Gold

Gold, just like Bitcoin also rose up the charts and saw significant improvements. However, this was immeasurably smaller in capacity and totally incomparable to Bitcoin’s prowess over the past few weeks.

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Present-day Bitcoin market has matured, improved on the protocol side, claims Blockstack PBC CEO

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The cryptocurrency industry today has everyone’s attention, with the present bull run pumping Bitcoin’s price and driving the market capitalization through the roof. A series of investors and analysts have predicted that the bullish momentum experienced by the market is currently more mature than the one in 2017. This was backed by a recent SFOX report as well.

In a recent segment on Bloomberg, Muneeb Ali, CEO and Founder of Blockstack PBC, highlighted that the crypto-market was basically very repetitive, as it basically does the same thing time and time again, but on a different scale.

He said,

“The market goes up to its all-time-high, crashes down, takes a longer time to bounce back and if you have been in crypto long enough, you are pretty much expecting it.”

Ali suggested that Bitcoin had made significant progress on the development and protocol side as presently, a lot of highly skilled developers and engineers are involved in the technological aspect. The remark can be backed by the fact that Bitcoin recently released its Erlay protocol which was supposed to reduce bandwidth usage in the network and improve system efficiency.

The involvement of institutional investors has made Ali skeptical about the market since the technology is fairly new and “no one really knows” what is going on or where it is going in the future. He believes that the present bull run has less to do with institutional investors and more with the fact that the overall market was maturing.

Further, it was recently suggested that Bitcoin played a role in driving up the prices of Asian crypto-related stocks in Tokyo and Seoul, with certain companies witnessing hikes of more than 10 percent over the past week. The surging Bitcoin price and its corresponding market cap affords a lot of opportunity for these stocks to rise even higher.

Source :ambcrypto


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Bitcoin [BTC] Forges Another Assault On $15,000 Reviving Investor Interest

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  • Double-digit gains on Wednesday revive investor interest in Bitcoin and other cryptocurrencies.
  • Bitcoin surge is supported by key technical indicators including the RSI and the MACD.

It is evident that Bitcoin is not going to rest until it achieves the milestone by breaking above $15,000 in the coming few weeks. Following the break above $12,000, BTC/USD pushed for further correction higher inching closer to $13,000. A new 2019 high was from at $12,946, however, this will not hold as the high for long owing to the increasing bullish pressure at press time.

BTC/USD 4-h chart

Bitcoin price chart
Chart source: Tradingview 

BTC/USD trading pair is correction higher 10% on Wednesday with a relative change of +1115. In fact, a break above $12,900 is the kick that Bitcoin is waiting for the much-anticipated movement above $13,000.

As discussed by Coingape earlier today, the technical levels remain positively intact. The Relative Strength Index (RSI) continues to form a higher low pattern. The up trending indicator signal points towards a stronger bullish momentum. At 88.22, the RSI is back to the levels seen on May 12 following the break past $7,000 and later $8,000.

As long as the RSI stays in the overbought and respects the trendline observed on the chart, correct past $13,000 will be a walk in the park. The strong bullish momentum is also supported by the trends seen with the Moving Average Convergence Divergence (MACD). The indicators divergence increase is an indication of building bullish momentum and the tight grip from the buyers.

Bitcoin Key Technical Indicators

Key Resistance: $13,500

Key Support: $11,000 – $10,500

MACD 4-h: Increasing divergence suggest stronger bull grip.

RSI 4-h: The upward trend continues to cement the bull’s presence on the market.

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