Connect with us

Crypto Exchange

Class Action against Coinbase on its Nasdaq listing

Published

on

Coinbase undergoes a class action related to its debut for the Nasdaq listing . The class action lawsuit against the company also appoints several Coinbase directors and officers including CEO Brian Armstrong.

According to what was reported , the lawsuit alleged that ” according to the complaint, the registration statement and the prospectus used to make the company’s offer were false and misleading”

Specifically, Scott + Scott Attorneys of Law LLP have announced that the class action against Coinbase Global Inc. (NASDAQ: COIN), would have as main actor Donald Ramsey.

Advertisement

Besides Armstrong, the lawsuit would also affect other investors and executives who would have benefited from Coinbase’s direct offer or IPO. Some names disclosed are: Marc Andreessen, Fred Ehrsam, Fred Wilson, AH Capital Management, Tiger Global Management, Union Square Ventures and Viserion Investment.

We are talking about the event that has given a turning point for the crypto sector, being Coinbase the first exchange to choose to be listed on the stock market , with its ticker COIN. 

It was April 14, 2021, in fact, when the IPO directed by Coinbase was launched , all after the SEC had approved the so-called Form S-1 two weeks earlier, that is, the request for listing on Nasdaq. 

Advertisement

Class Action against Coinbase: some details

The largest crypto exchange in the United States with over 56 million verified users, it launched on Nasdaq, with its shares worth $ 381 each. 

The lawsuit appears to claim that the IPO documentation was untrue and misleading. Specifically, Coinbase would have:

“Failed to state that, at the time of the offer, [it] required a substantial cash injection and its platform was susceptible to service level disruptions, which was increasingly likely to occur as the company scaled its services to a larger user base “

Regarding misleading information, we report:

Advertisement

“As the truth about the company’s need to raise money and the limitations of its platform reached the market, the value of Coinbase shares dropped dramatically.”

Certainly, this legal action taken could move the status of Coinbase, which is very much followed and supported also by the banking giants. Last May 2021 alone, Goldman Sachs had expressed its COIN price prediction for a + 35% increase by the end of this year. 

News Source

Advertisement

Binance

Binance proposes a real-time token burning mechanism to boost BNB value

Published

on

  • Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
  • BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.

Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.

According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.

For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.

Details of Binance BEP-95 token burning mechanism

BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.

Advertisement

However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.

Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.

Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose. 

Advertisement

BNB price action

BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.

News Source

Advertisement
Continue Reading

Crypto Exchange

Google warns crypto investors of Youtube scams amidst high hacking

Published

on

  • Google warn crypto investors to be weary of Youtbe scams.
  • Google says hackers impersonate crypto influencers to run scams on YouTube.
  • YouTube, a hotbed for crypto scams.

Google’s Threat Analysis Group has warned crypto investors to beware of cryptocurrency scams on Youtube as phishing and impersonation on the video-sharing platform surges.

The Google group noted that a group of hackers is taking over Youtube, rebranding popular Youtube channels of well-known crypto or tech companies. “The channel name, profile picture, and content are all replaced with cryptocurrency branding to impersonate large tech or cryptocurrency exchange firms,” the group said, adding that hackers would live stream videos promising crypto giveaways in exchange for “initial contributions.”

According to the Google group, if these hackers don’t rebrand, they sell pages to the highest bidder depending on how many subscribers the channel has. They note that fake Youtube pages sell anywhere from $3 to $4,000.

The Google group notes that a group of hackers recruited in a Russian-speaking forum are actors behind the campaign.

Advertisement

Crypto investors should be warned as YouTube remains a hotbed for crypto scams

The video-sharing platform so many times has been used as a tool to dupe unsuspecting crypto investors. In December, American crypto exchange Gemini exposed two fake YouTube channels that were pretending to be from the exchange.

“These scam accounts are not our company. We have reported these accounts to YouTube,” Gemini tweeted.

Funny enough, it was not the first time Gemini was being impersonated on Youtube.

Advertisement

Crypto scams have been well perpetrated on the platform that the video giants ban crypto content on its platform. Authorities in the UK also warned young crypto investors with campaigns on Youtube and TikTok against being victims of crypto scams.

The cycle of crypto scams across all platforms is one that may never end. As much as crypto exists, crypto scams would remain a thing. The rise in crypto scams recently has been attributed to the surge in price and adoption of cryptos globally. It is safe to say that with crypto prices going up and more people, corporate organizations adopting cryptos, more scammers will be threatening the burgeoning space.

News Source

Advertisement
Continue Reading

Binance

Binance’s Trading Volume Hits $100 Billion in Just One Day

Published

on

Binance continues to see unprecedent trading activity while attempting to sail through regulatory hurdles

Binance’s daily volume hit an eye-popping $100 billion on Oct. 20, according to a tweet by CEO Changpeng Zhao.

Advertisement

The leading crypto exchange recorded this crucial milestone on the day Bitcoin, the largest cryptocurrency, reached a new all-time high of $67,276.

Despite introducing stricter measures for users due to severe regulatory scrutiny, Binance enjoys a comfortable lead over other crypto exchanges in both spot and derivatives trading, according to data provided by CoinMarketCap.

Eerier this month, the trading platform also announced a $1 billion ecosystem fund.         

Meanwhile, the decentralized finance sector is catching up with centralized behemoths. The total value locked in DeFi protocols has hit $100 billion for the first time.

Advertisement

News Source

Continue Reading