Connect with us

Blockchain News

Smell Something Fishy? The CFTC Will Pay You to Report Crypto Scams

Published

on

Nestled in the exhibition room at this year’s Consensus conference, the U.S. Commodity Futures Trading Commission (CFTC) had a message for conference goers as they weaved in and out of booths representing various projects and startups in the space: “Be on the lookout for virtual currency fraud” and if you see it, let us know.

CFTC Booth at Consensus 2019

“The Whistleblower Office of the Commodity Futures Trading Commission (CFTC) is issuing this alert to inform members of the public about how they may make themselves eligible for both financial awards and certain protections while helping stop [sic] fraud and manipulation relating to virtual currencies,” a handout from the booth reads.

The CFTC has long classified bitcoin as a commodity, and the document states that the CFTC considers all “virtual currencies [as] commodities under the Commodity Exchange Act (CEA).”

This same act gives the agency regulatory power to prosecute virtual currency fraudsters. Since the 2017 price run-up, crypto scams have been on the agency’s radar and it’s been keen to keep investors privy to project warning signs. In cooperation with the U.S. Securities and Exchange Commission, the CFTC has cracked down on illegal bitcoin brokers and dealers, as well as fraudulent crypto consultants and token rackets like My Big Coin.

In the whistleblowing briefing document, the CFTC uses My Big Coin and CabbageTech as textbook examples of scammy behavior. Among other red flags it warns potential whistleblowers against pump-and-dump schemes, wash/insider trading, unregistered derivatives platforms and “supervision failures or fraudulent conduct (e.g., creating or reporting fictitious trading) by virtual currency exchanges.”

If you notice any of these behaviors in practice, “you don’t have to be an ‘insider’ … to be a whistleblower,” the document reads. It continues to tell readers that they can tip off bad actors through the agency’s website, asking that they provide as much information on the alleged scams and orchestrators as possible (this includes “identifying information” like social media profiles, screenshots, bitcoin addresses, email addresses, etc.).

Anyone whose whistleblow ends in more than $1 million in sanctions against such companies are entitled to 10 to 30 percent of the monetary penalty.

A CFTC represented declined an interview, telling Bitcoin Magazine that each employee must be cleared by the agency to go on record. Bitcoin Magazine did learn that this was the CFTC’s first year at Consensus and that the agency has been making its rounds through the crypto conference circuit over the past year.

Like what you read? Give us one like or share it to your friends
original post…

Bitcoin News

Game Changer for Bitcoin? VanEck ETF Decision Tomorrow –  All You Need to Know

Published

on

One of the events the entire cryptocurrency community has its sights turned to is the VanEck/SolidX Bitcoin ETF proposal. It was published in the Federal Register back on February 20th, giving the SEC a legal timeframe of 90 days to make a further decision. This means that the Commission must come up with a decision tomorrow, May 21st.

May 21st – An Important Date for Bitcoin

The saga around VanEck/SolidX Bitcoin ETF proposal has been going on for quite a while now. Last year, their application was withdrawn after being delayed on multiple occasions by the US Securities and Exchange Commission (SEC). However, shortly after that, the application was submitted again, reigniting hope among those who believe that a Bitcoin ETF would catalyze a further increase in the price of the cryptocurrency, as well as further adoption.

The new application was filed with the Federal Register on February 20th, giving the SEC a binding term of 90 days to come up with a decision to approve, deny, or delay it. Interestingly enough, another Bitcoin ETF application was also filed with the Register on February 15th – that of Bitwise. The SEC delayed its decision on the latter, while even deciding to use the full 90 days term to make up its mind on the application of VanEck and SolidX. This is why May 21st is an important date to expect.

According to famous legal expert among the cryptocurrency community, Jake Chervinsky, however, the chances of a delay or denial are much higher than the chances of approval.

He bases his merit on the fact that the SEC is unlikely to approve the first-ever Bitcoin ETF without taking the full 240 days period that it legally can. Moreover, he also finds it rather unusual that the Commission didn’t delay the VanEck Bitcoin ETF together with that of Bitwise.

The lawyer also cited some of the reasons for the delay of the application of Bitwise, which include:

  • The nature of the market for Bitcoin
  • The efficiency of that market
  • The susceptibility of that market to manipulation
  • How the market is similar to markets for other commodities
  • Reports that a large percentage of reported volume is fake

Chervinsky pointed out that if VanEck has any chance of approval, then the SEC “would need to delay & aks all these same questions to them as well.”

What Does This Mean For Bitcoin?

While it’s anyone’s guess how a potential approval of a Bitcoin ETF would impact Bitcoin’s price and whether it would surge, the majority of the cryptocurrency community is undoubtedly sure of it.

According to Josh Roger, a well-known cryptocurrency trader and investor, the different scenarios will have different impacts on the price.

The upcoming VanEck ETF decision could certainly have a serious impact on BTC price.

Denial = Pull back the current price regardless of how good it looked this weekend.

Approval = push the price to new yearly high and create mass FOMO buying.

Delay = Expected & likely little change.

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.


CryptoPotato Video Channel



More news for you:

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

PSA: Bitconnect ‘2.0’ Triggers Countdown to Resurrect Greatest Crypto Ponzi Ever

Published

on

By

By CCN: In 2016 a cryptocurrency project named BitConnect came along offering 1% daily compounded interest for those who purchased and staked its token.

When the BitConnect (BCC) bubble inevitably burst, the owners, as expected, made off everyone’s money. The BCC token price sunk by 99.9%, and a previously $2.5 billion valued project became worthless.

Now, the greatest scam ever sold is back. Enter BitConnect 2.0.

Hey, Hey, Hey: BitConnect 2.0 Arrives for a Second Bite at the Cherry

A website and Twitter profile advertising the arrival of BitConnect 2.0 appeared in the last few days. The website shows a countdown to the rebirth of one of the worst cryptocurrency scams of all time.

Bitconnect countdown

The Twitter profile contains just two posts – one is a link to the new website; and the other is a Binance referral link with the directive ‘Buy Now’.

Of course, there are no BitConnect tokens (either 1.0 or 2.0) hosted on Binance. If we take a look at the domain registrar details for the new website – BitConnect.io – we see some strange peculiarities.

Despite the Twitter post promising a July 1st launch, the website’s domain name is set to expire two weeks before that date. The domain, which differs slightly from the original BitConnect.co website, was registered in 2017.

bitconnect domain

Scamception: A Scam Inside a Scam

All of this adds up to what looks like a scam inside a scam. Assuming the site domain isn’t renewed before the expiration on June 19th, then perhaps what we have here isn’t BitConnect 2.0 at all.

Rather, it appears someone with an old domain name is attempting to squeeze as much money out of their Binance referral link as possible before the site expires. The Twitter profile shows almost 1,000 followers already, despite the first post not appearing until one day ago. However, the new website is also registered in the same geographic location as the original – Panama.

One person who was able to see the funny side of the BitConnect revival was former BCC front-man, Carlos Matos. Famous for his exuberant and dramatic on-stage sale pitch, Matos continues to post memes about the BitConnect saga. Recently he revived his infamous ‘Hey, Hey, Hey…’ slogan to comment on BitConnect 2.0; which he apparently has no part in.

[embedded content] [embedded content]

Matos even posted this meme expressing a skeptical take on the project’s revival.

bitconnect grand theft auto meme

Too Late for Skepticism

Ultimately, the same skepticism would have been useful several years ago, before gullible investors were taken for all they had. From the ICO price of $0.17, the value of BCC tokens shot up to $509.99 in one year – marking ridiculous gains of 299,894%.

bitconnect charts

Of course, those gains were never cashed out. When the exit scam hit in January 2018, the value of BCC dropped like a stone. Data for the token price continued to be tracked up until August 2018, when it held a value of just $0.263786, before being removed from all exchanges.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

EOS Price Prediction Today: Daily (EOS) Value Forecast – May 20

Published

on

34-Million-EOS-Officially-Burned

34-Million-EOS-Officially-Burned

  • On the upside, if the price is sustained above the EMAs, the bulls are likely to retest or break the $6.60 and $6.80 resistance levels.
  • However, if the bulls fail to break the resistance levels, the crypto’s price is likely to fall back to the range bound zone.

EOS/USD Medium-term Trend: Ranging

  • Resistance levels: $ 6.80, $7.0, $7.20.
  • Support levels: $6.20, $6, $5.80.

Last week the price of EOS was in a bullish trend. On May 16, the crypto’s price tested a high of $6.80 and was resisted. The market fell and was in a downward correction to the support level at $5.80 price level. On May 19, the crypto’s price was in a bullish move but was resisted at the $6.60 price level. The crypto’s price is above the 12-day EMA and the 26-day EMA which indicates that price is likely to rise.

On the upside, if the price is sustained above the EMAs, the bulls are likely to retest or break the $6.50 and $6.80 resistance levels. However, if the bulls fail to break the resistance levels, the crypto’s price is likely to fall back to the range bound zone. Meanwhile, the market is at the overbought region of the daily stochastic but below the 80% which indicates that price is in a bearish momentum and a sell signal.

EOS/USD Short-term Trend: Ranging

On the 1-hour chart, the price of EOS is in a bearish trend zone. On May 19, the crypto’s price reached a high of $6.52 but was resisted. The crypto’s price fell and was in a downward correction. The bears have broken the 0.236, 0382 and the 0.50 Fib. retracement levels.

The price is in a downtrend zone but the 0.618 retracement level is likely to hold. In other words, the price may fall to the $6.19 price level. Meanwhile, the market has reached the oversold region of the daily stochastic but below the 40% range. This indicates that the price of EOS is in a bearish momentum and sell signal.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

Bitcoin Has Soared Above Intrinsic Value During Latest Rally, JPM Strategists Claim

Published

on

Strategists from United States banking giant JPMorgan Chase (JPM) have argued that bitcoin (BTC)’s recent rally has ostensibly soared past what they calculate to be its intrinsic value. Their analysis was reported by Bloomberg on May 20.

The strategists — who reportedly include JPMorgan global market strategist Nikolaos Panigirtzoglou —  judge that the top coin has recently been trading in a way that mirrors its late 2017 rally, which preceded a protracted price slump.

To ascertain the coin’s intrinsic value, the strategists reportedly analyzed bitcoin as a commodity and calculated its cost of production based on parameters such as estimated computational power, electricity costs and hardware energy efficiency, Bloomberg notes. They reportedly stated:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Bitcoin — which has seen a renewed lease of life since April — has traded as high as almost $8,300 within the last week — having traded sideways below $5,000 throughout February and March. In mid-December 2018, the top coin had traded below the $3,300 mark — with its current price point thus representing a roughly 150% gain over its bear market lows.

Bitcoin’s 3-month chart, Feb. 20 — May 20 2019

Bitcoin’s 3-month chart, Feb. 20 — May 20 2019. Source: CoinMarketCap

In an apparent qualification of their analysis, JPMorgan’s strategist are cited by Bloomberg as having noted that:

“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

As reported, JPMorgan CEO Jamie Dimon has long adopted a sceptical stance toward decentralized cryptocurrencies such as bitcoin, even as he steers the megabank toward launching its own blockchain-powered native settlement digital asset, JPM Coin.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Bitcoin News

Terrified Central Bank Attempts to Arrest Myanmar’s Bitcoin Binge

Published

on

By

By CCN: An emerging economy which expects to attract $5.8 billion worth of Foreign Direct Investments is belittling its goals with an anti-technology stance.

Myanmar is the latest developing country that is hinting to shut doors in the face of bitcoin, a decade-old global cryptocurrency which proposes to replace banks with a decentralized network of transaction validators and bookkeepers. Anybody with a decent internet connection can participate in the bitcoin economy, which further makes it an attractive asset for people with limited gateways to participate in global economies.

But, to the Central Bank of Myanmar (CBM), bitcoin is more a liability than an opportunity. The central bank earlier this month announced that it does not recognize bitcoin as money, stating that it would not allow Myanmarese financial institutions to accept or facilitate its transactions. The same ruling applied to cryptocurrencies having properties as that of bitcoin.

Bitcoin Adoption Booming in Myanmar

MMTimes.com reports that Myanmarese investors have been increasing their stakes in bitcoin and similar cryptocurrencies lately. Local advertising for bitcoin exchanges on social media is at its peak, which is prompting more people to board the bitcoin bandwagon. CBM fears that the process might shift a considerable capital from Myanmar’s own markets to an industry that is not theirs, which is why the central bank is discouraging people from investing in or using bitcoin and similar cryptocurrencies.

U Aung Aung, an IT professional working at a multination company in Yangon, told MMTimes that Myanmarese people like him face huge restriction on banking. He admitted purchasing some $20 worth of BTC back in 2017 after finding the cryptocurrency appealing for conducting flawless ‘global e-commerce and aid.”

[embedded content] [embedded content]

There are millions of people like Aung in the world that have entered the bitcoin economy for its underlying technological potential. The frenzy went to its peak during December 2017, when the bitcoin market valuation jumped to as high as $313.89 billion, almost five times the current GDP of Myanmar. A massive downside correction in 2018 brought the bitcoin rates almost 85-percent down. Nevertheless, the market now stands near $144 billion owing to an increase in institutional interest in first-tier countries like the US, Singapore, Japan, and Switzerland.

The Choice Between Doing an India or a Japan

CBM is now left with two options: either it can restrict people from investing in bitcoin like the Reserve Bank of India did, or it can take a proactive approach like Japan or Switzerland to make Myanmar a global hub for bitcoin-related developments.

U Nyein Chan Soe Win, the chief executive of digital commerce platform Get Myanmar, CBM does not have constitutional backing to announce an outright ban on cryptocurrencies. It is likely for the lawmakers to first define bitcoin in legal books before pursuing action against or in favor of the cryptocurrency.

“Before making crypto illegal, its impact on the local currency and compatibility with existing policies should first be analyzed and discussed,” he told MMTimes.com.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading
Advertisement

Recent Posts

Copyright © 2019 The Crypto Report