In a recent tweet, Changpeng Zhao, the CEO of the world’s leading cryptocurrency exchange, Binance, recently emphasized the potential profits that Binance Coin offers its holders. While a tweet of the kind might appear innocuous, it could also have an impact on the BNB price, given Zhao’s influence on the community, making the entire thing questionable. After all, we’ve witnessed prominent CEOs getting sued for propping up the value of their companies. How long will it be until the crypto industry is similarly scrutinized?
CZ Emphasizes the Value of Holding BNB
It’s safe to say that Binance Coin (BNB) has seen better days. Over the past few months, the cryptocurrency lost almost half of its value, plummeting from its all-time high of around $40 in June to $21.
Interestingly enough, the decline comes amid seemingly massive developments for Binance and its overall ecosystem. Yet, all of that seems to have had no impact on investors.
Against this backdrop, Zhao posted a seemingly controversial tweet today, “warning” people that not holding BNB could be a bad play.
While the majority of the text seems like a simple throwback to BNB’s glory days, the last sentence (“In the future, don’t say I didn’t tell you”) is questionable, to say the least. While it’s subject to interpretation, this sounds an awful lot like a warning that not holding BNB is a bad choice. Moreover, interpreted broadly, it could also sound like financial advice. Needless to say, this line of expression is completely unacceptable in traditional financial markets and we’ve already seen the consequences of it.
Standards are Not the Same
While a lot of cryptocurrency proponents are clamoring for regulatory clarity and definitions, it appears that the standards applied to traditional financial markets and the crypto world are a tad different, to say the least.
Back in August 2018, Elon Musk, widely considered to be one of this century’s visionaries as the CEO of SpaceX and co-founder/product architect at Tesla, got into a legal storm with the SEC over a tweet.
Musk said that he’d been considering taking Tesla private and that he had secured the necessary funding. Back then, he was also the company’s chairman.
The SEC took measures immediately, filing charges against the entrepreneur. Despite voicing his disagreement, Musk settled, agreeing to pay a $20 million fine, step down as the company’s chairman, and obtain pre-approval of his tweets from the company’s legal counsel.
In other words, the US SEC takes social media behavior seriously. And it probably should. Apart from being major shot-callers at their respective companies, a lot of the rich and famous CEOs, Changpeng Zhao included, have serious social media followings.
Zhao, for instance, has over 429,000 followers on Twitter. Hence, it’s only natural that his opinions would have influence over the people who read them. As such, it’s questionable at best to use the platform to offer any sort of financial advice, especially that which would impact the price of an asset that one’s company created.
Of course, Zhao is far from the only individual to have done so, even subtly. Justin Sun, TRON’s founder, provides perhaps the best example of such behavior.
After all, we haven’t seen Jeff Bezos directly propping up Amazon’s stock, have we?
UK Startup Takes Billion-Dollar Tokenization Plan Stateside
Smartlands is betting on a billion-dollar tokenization vision with a new broker-dealer partnership to make it happen.
The British digital tokenization firm is now working with IIP Securities, an international banking consultancy based in New York, as it prepares to bring its security token crowdfunding model stateside.
The alliance provides Smartlands access to IIP Securities’ broker-dealer license – a critical element for complying with U.S. regulatory framework and one that has proven difficult, but not impossible, for digital asset firms to win on their own.
With the license secured, Smartlands CEO Ilia Obraztsov told CoinDesk that his firm will keep building out its global tokenized investments platform on the stellar network.
“Our goal is to tokenize one billion dollars in assets by 2024.” Obraztsov said. “On this road the United States is the next step.”
For asset-holders interested in fractionalized ownership Smartlands’ UK efforts may provide a roadmap. In June the company launched one of Britain’s early real estate tokenization projects, crowdfunding about £1 million for a student housing complex.
That listing is projected to yield investors about 15% annually. Obraztsov said modest returns on low-risk assets will continue to be Smartlands’ target as it moves beyond real estate. Green energy, commodities and late-stage startups are all being considered, Obraztsov said.
Smartlands had already been working under UK regulators’ approval and its partnership with IIP Securities only clears one barrier to U.S. entry. Both firms will gin up on local regulatory framework in the coming months. They intend to launch in the U.S. in Spring 2020.
Crowded playing field
Smartlands wants to build a “one-stop shop” for security token issuance, marketing and exchange in the US, Obraztsov said. Many other companies want to do the same.
In the past year a handful of high-profile crypto-focused firms have moved towards securing broker-dealer licensing, including the Winklevoss-controlled Gemini exchange and Harbor, which recently gained regulator approval.
“Harbor’s securing a broker-dealer license was a huge step forward for the security token landscape,” Obraztsov said. He welcomes the competition.
“We think property rights market is really huge, in the hundreds of trillions. There is room for everybody.”
Smartlands’ developers mostly work out of Vilnius, Lithuania, and Kiev, Ukraine, where IIP’s holding company is also headquartered. Galyna Danylenko, PR Lead for Smartlands, said the company would build out a New York team soon.
Spanish Firm Aragon to Open Registration Doors for Aspiring Judges to Settle DAO Disputes
Spain-based reputed startup platform, Aragon has broadcasted the news that it will launch a form for the registration of interested individuals who are aspiring to sign up as judges for the platform. These judges will play a pivotal role in settlement of disputes and the enforcement of contracts between the entities working on the network.
Aragon was formulated with an objective to facilitate the creation and management of a decentralized autonomous organization or DAO, as it is popularly referred to as, while utilizing the tools offered by Ethereum. The piece of news was delivered by Aragon’s developer and CEO, Luis Cuende, during his interaction with James Molins, a correspondent of Breaking News, in the Congress Paralelní of Hackers (HCPP 2019) that was organized in Prague, Czech Republic.
It is a justice system decentralized to resolve disputes in a way that you can have your estate in Aragon, decentralized in the blockchain, and then also have this system with which you can resolve disputes of any kind in your estate. For example, the attacks that arise on the part of the DAO that want to take the treasury out of the funds of the DAO and give it to another DAO, so that people who do not have as many token do not have the right to vote and lose the funds. This type of problem, very common in a scenario where you either purchase tokens and you can be part of a DAO, we solve this system of dispute resolution,
said Luis Cuende.
Where on the one hand, Aragon allows a person to run and manage a decentralized organization by providing aid in fields like accounting, financing, governance, etc., it is also now planning to create a regulatory court that will render to compliance of contracts along with a settlement of conflicts for the DAO.
Luis Cuende further shared his views saying that
And the magic of this jurisdiction decentralized is that there is no violence, this court can not get anyone in jail. There are No prisons. What we can do with incentives crypto-financial is to align so that all the people, in general, have reasons for not doing harm to other people, or, in general, not to damage relationships or existing contracts. But in the end, there is no violence, which it seems to me that is still very much the concept of crypto.
The spearhead confirmed that by December next year, a registration form will be made available for the people who wish to apply for the judges’ designation. By January 2021, the solution will start resolving real cases of disputes. The judges shall be selected by draw, and the parties in dispute will be allowed to select the number of judges who wish to participate in the case proceedings.
The judges who aspire to become a part of a particular case will have to make a deposit in ANT token in lieu of the right to perform the service. Post the case proceedings; the judge will get his/her fees.
Even if you have a dispute resolution system, you don’t want to have to use it; then our model is also fixed much of it, in which the judges have to be paid but not do anything. You need to be there not only for the disputes, but they are there forever, that is what also makes the traditional system of justice isn’t it? Whether or not you cases to judges are paid, because if not they would go,
The court is put into action when an interested party counters that a submitted proposal has violated the agreement terms. The disagreeing party needs to deposit an equal amount of collateral as well as the initial fees of dispute decided by the Court of Aragon.
MakerDao announces launch of Multi-Collateral Dai; introduces new logo
Maker Foundation’s Chief Executive Officer [CEO], Rune Christensen, spoke at DevCon 5 held in Osaka, Japan, where he revealed the launch of Multi-Collateral Dai [MCD]. Christensen went on to announce that the launch will take place on 18 November.
MCD will also be introducing several other features to the Maker Protocol like Dai Savings Rate [DSR] and additional CDP collateral types. The DSR will differentiate Dai from other stablecoins and will enable users to earn on-held Dai, while MCD will offer an option to earn savings by holding Dai.
The launch of MCD is being held as a milestone for the MakerDAO project, in light of the impact it may have on the future of Decentralized Finance. Apart from earning Dai with DSR, it would also lead the way for innovative Maker protocol integration on the backend of DeFi dapps. The blog read,
“Multi-Collateral Dai represents a tool in the DeFi toolbox that can help harness the power of money to solve global problems. Because of DeFi’s reliance on transparent, honest collaboration, even the most extreme global financial inequality might one day become a thing of the past.”
Defi may help the unbanked and the under-banked to build products and gain access to financial services. MKR holders will be voting on the terms of the DSR and the risk parameters for BAT and ETH, the first two tokens under evaluation by the interim risk team.
Christensen also took the opportunity to introduce the community with the new look of the Dai logo. Head of Design, Henry Doe, commented on the same, stating that the design included intensive research and community participation. He added,
“In doing so, we saw a great opportunity to design something that would help move DeFi into the mainstream and allow Dai to be globally recognized as a currency.”
The new design pushes the accessibility of Dai to people outside the cryptoverse to communicate the role MCD will be playing in DeFi, while promoting the stablecoin’s potential, explained Coulter Mulligan, Head of Marketing.