Just about a day ago, Chepicap reported that the Securities and Exchange Commission (SEC) had handed out the first A+ rating to an ICO, Blockstacks. Now, a second project can join the list. As Coindesk has reported, Props, an Ethereum based token that integrates with platforms like YouNow and XSplit, has also received approval from the SEC.
The Props blockchain is developed by YouNow and acts as a way for content creators to be rewarded for driving “community engagement.” According to an SEC filing, the company will be distributing 187 million of these tokens to both users and creators.
The tokens can be transferred across different platforms, applications and wallets, and the team hopes that the value of the token wil lcontinue to rise, and was $0.1369 at launch. However, currently there is no way for users to sell their tokens for fiat.
It is reported that YouNow worked closely with the SEC for two years to make sure they were in full compliance and could demonstrate to the SEC that they were in no way trying to mislead investors.
$11 Million Pyramid Scheme Attacked By Lawsuit From The CFTC
Just announced this week from The United States Commodity Futures Trading Commission (CFTC) is the filing of a civil enforcement action against Circle Society.
The owner of the Nevada-based firm, David Gilbert Saffron is being charged by the CFTC under claims of “fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme.”
The charges claim that the defendants misappropriated around $11 million worth of the leading cryptocurrency and US dollars from different people in the States in order to “trade off-exchange binary options on foreign currencies and cryptocurrency pairs, among other things.” The Chairman of the CFTC, Heath P. Tarbert said:
“Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets. America must be a leader in this space, and we will only succeed if these markets have integrity.”
The defendants are said to have fooled around 14 people into joining a pool operated by Circle Society, a fraudulent body that Saffron designed that guaranteed up to 300 per cent returns. The owner is supposed to have retained the participants’ funds in his own personal crypto-wallet which he used to pay new investors. Essentially this was done in the way of a Ponzi scheme, however, how much of this is true is unknown.
As reported by CoinTelegraph:
“The CFTC will seek civil monetary penalties, restitution, rescission, disgorgement of ill-gotten gains, and trading and registration bans, but is aware that there might not be sufficient funds or assets to cover all the losses.”
Reports recently surfaced stating that the new CFTC chairman believes Ethereum is a commodity and that trading the token is becoming very much real.
“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether—until now […] It is my view as chairman of the CFTC that ether is a commodity.”
Beverage Giant Pepsi Launches PepCoin – Not Based on Crypto, Bitcoin or Blockchain Technology
The New York-based food, snack and beverage company Pepsi has officially launched PepCoin.
The “coin” gives anyone with the munchies a way to earn 10% cash back when buying chips and drinks.
Although the name and logo may look like an attempt to capitalize on the crypto craze, PepCoin has no relation to cryptocurrency or blockchain technology. It’s a cash-back loyalty program that leverages Venmo and PayPal for on-demand, mobile consumers.
Says Leanne Sheraton, vice president of marketing at PayPal,
“Venmo and PayPal’s payout solutions provide the ability for physical brands to engage with their consumers digitally, while offering a convenient way for consumers to redeem and spend their cash rewards.”
To earn rewards, snackers scan a code on the bottlecap or bag, and watch the cash back flow into their PepCoin account.
When the amount hits $2.00, users can withdraw directly to their Venmo or PayPal account.
Pepsi says people can get rewards for purchasing more than 60 of its drinks and snacks, including Cheetos, Mountain Dew, Aquafina, Doritos and Ruffles.
PepCoin launched about a month ago and has earned little fanfare from the crypto community.
Crypto Titan Reveals Massive Institutional Interest in Bitcoin and Ethereum – Plus Updates on Ripple, XRP and Litecoin
From a burst of institutional interest in Bitcoin and Ethereum to new adoption for BTC and Litecoin, here’s a look at some of the stories breaking in the world of crypto.
Bitcoin and Ethereum
The institutional crypto investment giant Grayscale has released its third-quarter report for 2019, revealing a surge of Wall Street interest in Bitcoin and Ethereum.
Grayscale offers a series of trusts that allow institutions to gain exposure to BTC and a long list of altcoins, including ETH, XRP, BCH, LTC, XLM, ZEC and ZEN.
The firm’s latest report shows an exponential jump in growth for BTC and ETH that began early this year.
Grayscale says the biggest surge happened in July, with $75 million pouring into its Bitcoin trust in a single day.
“Quarter billion-dollar inflows ($254.9 million) mark [the] strongest demand for Grayscale products since firm inception: Inflows tripled quarter-over-quarter, from $84.8 to $254.9 million, despite recent declines in digital asset market prices.”
The US-based payment merchant processor Aliant plans to pay its employees part of their compensation packages in both Bitcoin and Litecoin.
Aliant first began supporting crypto payments in September of 2017.
CEO Eric Brown says the initiative shows the company’s commitment to the digital economy.
“The fintech industry is growing and changing rapidly, and this is a way for our employees to be a part of Aliant’s involvement in this shift to digital currency.
Each member of the Aliant team now has a vested interest in cryptocurrency not just as something they work on in the office. The more our team utilizes digital currency, the better our customer user experience will be. This benefits Aliant as a company, and our employees as invested customers.”