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Why Bitcoin Will Succeed?

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If Bitcoin will succeed or not is an interesting question. For the time being, Bitcoin holds a leading position across the cryptocurrency market. It jumped to 7-weeks highs this Wednesday and it seems that Bitcoin will have a considerable price breakout, just like gold. People will be forced to rethink their investment strategies based on the way the cryptocurrency behaves around current price levels.

Chaos theory shows the limitations of making predictions. One cannot simply anticipate all possible future events. Maybe so, yet Bitcoin isn’t one of those “inherently unpredictable” things.

You can do an analysis for tomorrow and find patterns to make predictions. Will Bitcoin be the winner of the cryptocurrency future? If Bitcoin will succeed, it will be based on its qualities and not on what people say.

What does the future hold for Bitcoin? Let’s start by making sure we understand the basics.

Review: A Short History of Bitcoin

Bitcoin has existed since 2009, so it’s not exactly new. Numerous attempts were made to create a practical digital asset that couldn’t be copied or counterfeited. Nevertheless, nobody succeeded in developing a reliable e-cash method like BTC.

Satoshi Nakamoto – The One Who Supposedly Discovered Bitcoin 

Satoshi Nakamoto published in 2008 a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, in which he enlarged upon the functionality of the blockchain network. It represented a disruption to the hogged field of centralized financial power. Strangely enough, Nakamoto denied being the founder of the online currency. He may not be Bitcoin’s creator, but Nakamoto possesses about 1 million BTC.

Many say that the original whitepaper sounds like it was written by Elon Musk. But there’s no reason why he would’ve hidden his identify all this time. What is certain is that Musk is now tied to the mystery behind the creation of Bitcoin. It doesn’t really matter who’s the father of Bitcoin. What matters is that we can take advantage of this unique network as a payment platform.

First-Ever Transaction Involving Bitcoin

The first real-world transaction with the cryptocurrency was reported on the 22nd of May, 2010. It’s so notorious that even amateurs know about it. A Florida man traded 10,000 BTC for two pizzas. Just think about it. Those Bitcoins would be worth more than $80 million at present. Bitcoin Pizza Day is one of the most important events in cryptocurrency history. Following that pizza purchase, Bitcoin drew near the American dollar.

Understanding the Powerful Technology Behind Bitcoin and Other Cryptocurrencies

Why Was Bitcoin Created in The First Place?

Bitcoin was invented to solve the problems related to real money. It was the very first decentralized peer-to-peer payment network. The virtual currency doesn’t require an intermediary, such as a bank, so money can be sent from user to user without the need to exchange personal information. And without having to pay hefty transaction fees. No financial institution can control the supply, by the way. 

Blockchain is to Bitcoin what the Internet is to Google

The cryptocurrency relies on a technology called blockchain. To put it simply, blockchain is a series of records, which are referred to as blocks. The blocks are connected with the help of cryptography. You can think of it as a ledger of information. This cutting-edge technology can be deployed to develop games, social networks, storage platforms, prediction markets, and so on.

Here are some interesting things you should know:

  • Bitcoin supply is set to 21 million.
  • There are 8,115,212.5 bitcoins in existence.
  • If you lose your Bitcoin key, you lose your Bitcoins.

Once a financial transaction is recorded, it’s there forever. The blocks of the chain create a permanent record of every transaction, which is available to users in real-time. You can’t say that your Bitcoins were stolen online because the blockchain will prove you wrong. The information is shared across numerous computers, so it’s updated on the spot.

Bitcoin Isn’t A Fad, It’s the Future

Bitcoin’s revolution is still at an early stage. At least, this is what the experts believe. Blockchain technology enjoys a great deal of support from banks and governments. Having understood that they can’t defeat Bitcoin, they have decided to be on the same side. In 2018, the Bank of England affirmed that it would look into the matter – in other words, it would investigate if ledger technology has potential use cases.

Crypto isn’t just another fad that will go away. On the contrary, many companies design mobile applications and software to come to the help of people who are looking forward to investing in cryptocurrency. Applications and software are made to be easy to use. This belief is in consonance with PickWriters’ views. They are adapted to a specific culture, language, not to mention legal requirements.

Other organizations go one step further and obtain venture capital by creating digital currency and conducting an ICO. More often than not, the offering is aimed at foreign investors. Those who comprehend the power of the underlying technology don’t hesitate to make an investment. They don’t fancy themselves as traditional investors.

Bitcoin, as far as it’s concerned, is a monetary innovation combined with a one-of-a-kind technology story. People have tasted, or at least they have witnessed the incredible returns from Bitcoin, so it’s not going away any time soon. Entrepreneurial cosmopolitans place their faith in digital currency. It’s hoped that in the future, Bitcoin will operate in many more environments. A great demand already exists in the market, so the number of adopters will surely increase.

What Will Bitcoin Look Like in The Years to Come?

A modest investment in Bitcoin can ensure a promising future. We don’t know when the cybercash will enter its next phase. The only thing we know for sure is that the days that are about to come will prove nothing but positive for Bitcoin as institutional money enters the market. Decentralized cryptos and apps will dispense power across the system. Nobody can take control or even change the rules as they please.

The value of Bitcoin has been negatively impacted by the lack of recognition in important economies. Is there something else stopping Bitcoin from achieving its full potential? Unfortunately, it’s not ready yet for mainstream adoption. This is what needs to change.

Solving Bitcoin’s Volatility Problem

The reason why Bitcoin can’t be used in day-to-day transactions is that it has a volatile value. More precisely, the price fluctuates all the time. One day it’s skyrocketing and the other day it’s down in the dust. Of course, this volatility can be overcome. The question now is: How? The cryptocurrency market needs more liquidity. There are too many Bitcoins and very few possessors. Additionally, if more financial institutions backed up the cryptocurrency, things would be different now. 

Educating People About Cryptocurrency

Maybe people aren’t willing to embrace the crypto-revolution because they don’t understand it. Regular individuals don’t know anything about cryptography. You don’t need specialist knowledge to use BTC, but you must know cryptography to use a Bitcoin wallet. For many, Bitcoin is simply a concept. This lack of education is damaging to the industry, to say the least. It’s necessary to offer a transparent education with regard to how cryptocurrency works.

When the aforementioned issues are solved, Bitcoin will go mainstream. Mass adoption will no doubt become reality. Even the smallest participant in the market has the power to accelerate Bitcoin’s adoption by spreading confidence and sharing valuable insight. 

Bitcoin Will Never Be Beaten. That’s the Truth

The publishing of the Bitcoin whitepaper many years ago disrupted the world. It’s important to understand that the cryptocurrency still causes digital disruption. The community has increased with time and the Bitcoin protocol has been adapted accordingly.

If the world’s governments can’t agree on a consensus with regard to blockchain, decentralized cryptocurrencies will transform into a parallel economic operating system. We’re talking about an economy that’s not oppressed by laws and the decisions of public authorities. What Bitcoin does is give power back to the people. This isn’t an exaggeration.

Contrary to popular belief, Bitcoin prices won’t collapse to zero. Many individuals in the cryptocurrency community have held BTC through difficult times and have managed to survive. Tough times come and go. It’s the skill and patience that make you strong when it comes to your coins. Bitcoin can be used as a hedge against disaster. Think about it. You’ve got a chance to invest in something that’s almost as good as gold.

The truth is that Bitcoin’s future isn’t bad. If shortcomings are overcome and the number of conversion options increases, no cryptocurrency will be able to replace BTC as the winning standard.

Elon Musk thinks Bitcoin is brilliant. What is more, the entrepreneur and businessperson claimed that “paper money is going away.” He’s quite right. Coins and paper currency are the preferred methods for paying for things. With counterfeiters getting more skilled at copying banknotes, electronic payments will rise year after year.

To sum up, Bitcoin is a highly complex innovation that stands a great chance of being successful. The cryptocurrency will succeed because it solves the biggest problem of all: centralized banking systems that control everything. People are getting smarter, so they won’t say “no” to crypto adoption.

So by now, I hope you understand why bitcoin will succeed. Let me know if you have any questions by leaving a comment below.

AUTHOR BIO:

Donald Fomby is a communications professional with more than five years of writing experience. Donald runs blog BestWritersOnline and is proud of an uncanny ability to explain the most complex subject in simple terms.

Elon Musk Tweets That “Bitcoin” Is Not His Safe Word

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By now, you probably know that Elon Musk appears to have knocked up his girlfriend, Grimes.

And just when you thought that was more than enough information on the billionaire’s personal life, you fire up the Bloomberg terminal and wind up staring at this:

Elon Musk Tweets That "Bitcoin" Is Not His Safe Word

The headline comes from an Elon Musk tweet where the CEO, who is probably delirious with joy after watching his stock hit all time highs while facing zero accountability from the NHTSA, tweeted “Bitcoin is *not* my safe word”.

A “safe word” is, of course, a word used by sexual partners during rough sex. It’s a proverbial “tap out” when things make the transition from playful to harmful. You know, like the Fed with monetary policy over the last 20 years.

And regardless of whether Musk is serious or not remains to be seen, but that didn’t stop CCN from running an article with the title “Elon Musk Likes Shouting ‘Bitcoin’ While Having Sex”. 

And just like that, the voices of millions of Bloomberg terminal users cried out in terror and were suddenly silenced. 

Elon Musk Tweets That "Bitcoin" Is Not His Safe Word

We can’t tell if it’s a commentary from Musk on cryptocurrency. CCN notes “in the past, Musk has described bitcoin as quite brilliant.He’s even had his Twitter account suspended for half-jokingly urging one of his followers to buy the cryptocurrency.” In April he tweeted, “Cryptocurrency is my safe word.” 

Regardless, it seems like more time well spent on Twitter for the world’s favorite boy genius. We wonder how those 100 hour work weeks are still coming along.

And for us, this Tweet and the pregnancy news amount to far more Elon Musk sex-related news than we would ever want. 

But hey – if we had gotten away with all of the lies and deceit that Musk has over the last decade while the market rewards our cash incinerating company with a nearly $100 billion enterprise value, we’d be horny too. 

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Bitcoin Can Gain 100% In 2020 – Halving Not Priced In, Says Fundstrat

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Authored by William Suberg via CoinTelegraph.com,

Bitcoin can deliver 100% returns to investors in 2020 and may rise significantly in the five months until May’s block reward halving, a new report claims. 

Bitcoin Can Gain 100% In 2020 - Halving Not Priced In, Says Fundstrat

image courtesy of CoinTelegraph

In its forthcoming 2020 Crypto Outlook, market research firm Fundstrat Global Advisors said it believed that the halving was not yet “priced into” the Bitcoin price.

Fundstrat expects over 100% BTC gains

The report is currently only available to the firm’s clients, with key findings uploaded to Twitter by co-founder Tom Lee on Jan 10.

“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin — thus, we believe Bitcoin and crypto total return should exceed that of 2019,” an excerpt states.

Fundstrat continued:

“In other words, we see strong probability that Bitcoin gains >100% in 2020.”

The factors Lee and others identified focus on geopolitical tensions and the upcoming United States presidential elections, in addition to the halving. 

Fundstrat took its cue from events last year, noting BTC/USD hit its high point amid tensions around Facebook’s Libra digital currency and negative comments on Bitcoin by president Donald Trump. 

Bull catalyst or “non-event”?

As Cointelegraph reported, geopolitical factors form the basis for other commentators’ bullish Bitcoin price scenarios for this year. 

As regards the impact of the halving, however, pundits are less united. Last month, Jason Williams, co-founder at digital asset fund Morgan Creek Digital, said May would prove to be a “non-event” for Bitcoin.

Williams appeared to contradict fellow co-founder Anthony Pompliano, who a month previously had claimed that even at $8,750, Bitcoin was yet to have the halving priced in.



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South Korea’s Largest Digital Asset Exchange Bithumb Might Invest $8 Million in Country’s Regulatory Free Zone

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South Korea's Largest Digital Asset Exchange Bithumb Might Invest $8 Million in Country's Regulatory Free ZoneBithumb, South Korea’s largest digital asset exchange, might invest over $8 million into the nation’s regulatory sandbox program and ecosystem.

Through its subsidiary GCX Alliance, Bithumb’s management has shown intent to invest up to 10 billion Korean won (appr. $8 million) into Korea’s regulatory free zone, which is based in Busan, local sources confirmed on January 9, 2020.

Busan is the country’s second-largest city, and has previously been in the news on several occasions for being a deregulated outpost and for its plans to develop a blockchain-powered digital currency.

Last month, Korea’s leading telecommunications firm, KT, announced the launch of a blockchain-enabled digital currency, which would be local to the city of Busan.

Bithumb’s management has expressed an interest in allocating the 10 billion won investment towards the development of the Busan-based Tongsan Asset Exchange, as noted by Korea’s Ministry of Small and Medium Venture Businesses.

South Korea’s Financial Services Commission is reportedly planning to review these plans with the Bithumb team by the end of this month.

As noted by local media sources:

“The [Korean blockchain] industry expects Bithumb to launch various blockchain-based financial businesses in Busan with this investment.”

South Korea’s National Tax Service recently revealed that it would be withholding $70 million in taxes from Bithumb. Bithumb Holdings’ largest shareholder, Vidente, which runs Bithumb’s Korea branch, confirmed the withheld amount and said that the tax would be imposed on the exchange’s overseas clients.

It was notably the first time that Korea’s tax authorities ordered that taxes be paid on capital gains from cryptocurrency transactions.

The notice stated:

“Bithumb Korea is planning to take legal action against the tax claim so the final payment can be adjusted in the future.”

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As EU Regulations Tighten, Crypto Options Exchange Deribit Moving from Netherlands to Panama

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As EU Regulations Tighten, Crypto Options Exchange Deribit Moving from Netherlands to PanamaDeribit, a cryptocurrency options exchange that does not currently require customers to identify themselves, will relocate to Panama from the Netherlands, the exchange says in a letter to customers obtained by Bloomberg.

According to the outlet, the Deribit communiqué says that new EU rules likely to be adopted in the Netherlands, “would mean that we have to demand an extensive amount of information from our current and future customers.”

Cryptocurrency fans typically prize privacy, but law enforcement, regulators and tax departments across the globe have become increasingly concerned in recent years about possible criminal use, money laundering, terrorist financing and tax evasion involving cryptocurrencies.

According to data obtained by Bloomberg from Skew, Deribit handles 80% of the world’s crypto options trades.

The outlet says Deribit has already moved its servers to London and, as of February 10th, “The exchange will be operated by DRB Panama Inc., a fully-owned subsidiary of the Dutch company Deribit B.V.”

Also in February, Deribit will reportedly start requiring users withdrawing up to 1 bitcoin every 24 hours to provide a name and address, though no government ID or passport scan will be required at that level.

Documents will have to be provided on withdrawals involving more than 1 Bitcoin, however.

Deribit decried the implications of the new rules:

“Crypto markets should be freely available to most, and the new regulations put too high barriers for the majority of traders, both regulatory and cost-wise.”

In March, Caspian, a crypto trading platform for professional traders and investors, integrated its platform with Deribit, and thereafter claimed to be the first institutional-grade platform to provide both options and futures trading of cryptocurrencies.

Caspian also claims it interfaces with all major crypto exchanges and OTC brokers.

It is not known how or if Deribit’s move will affect affairs at Caspian, which also appears to be a Netherlands company.

Caspian has been contacted and any comment they may forward will be appended to this article.

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As EU Regulations Tighten, Crypto Options Exchange Deribit Moving from Netherlands to Panama

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As EU Regulations Tighten, Crypto Options Exchange Deribit Moving from Netherlands to PanamaDeribit, a cryptocurrency options exchange that does not currently require customers to identify themselves, will relocate to Panama from the Netherlands, the exchange says in a letter to customers obtained by Bloomberg.

According to the outlet, the Deribit communiqué says that new EU rules likely to be adopted in the Netherlands, “would mean that we have to demand an extensive amount of information from our current and future customers.”

Cryptocurrency fans typically prize privacy, but law enforcement, regulators and tax departments across the globe have become increasingly concerned in recent years about possible criminal use, money laundering, terrorist financing and tax evasion involving cryptocurrencies.

According to data obtained by Bloomberg from Skew, Deribit handles 80% of the world’s crypto options trades.

The outlet says Deribit has already moved its servers to London and, as of February 10th, “The exchange will be operated by DRB Panama Inc., a fully-owned subsidiary of the Dutch company Deribit B.V.”

Also in February, Deribit will reportedly start requiring users withdrawing up to 1 bitcoin every 24 hours to provide a name and address, though no government ID or passport scan will be required at that level.

Documents will have to be provided on withdrawals involving more than 1 Bitcoin, however.

Deribit decried the implications of the new rules:

“Crypto markets should be freely available to most, and the new regulations put too high barriers for the majority of traders, both regulatory and cost-wise.”

In March, Caspian, a crypto trading platform for professional traders and investors, integrated its platform with Deribit, and thereafter claimed to be the first institutional-grade platform to provide both options and futures trading of cryptocurrencies.

Caspian also claims it interfaces with all major crypto exchanges and OTC brokers.

It is not known how or if Deribit’s move will affect affairs at Caspian, which also appears to be a Netherlands company.

Caspian has been contacted and any comment they may forward will be appended to this article.

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Alon Goren, Partner at VC Firm Draper Goren Holm , Discusses Blockchain & Digital Securities

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Alon Goren, Partner at VC Firm Draper Goren Holm , Discusses Blockchain & Digital Securities

Alon Goren is well known in the Fintech space having been an early thought leader and supporter of the investment crowdfunding sector. When the JOBS Act was signed into law, Goren was in the thick of things seeing the opportunity of online capital formation.

Over the years, Goren’s focus has shifted to target blockchain or distributed ledger technology (DLT) as a disruptive force in the emerging sector of digital assets. Goren, along with partner Josef Holm, have created the LA-based Crypto Invest Summit (CIS). The Summit is the largest event of its kind on the West Coast. CIS has experienced the extreme highs of the crypto sector – and now the more earthbound expectations of blockchain technology. Recently, to reflect the evolving digital asset sector, CIS is now rebranding as the LA Blockchain Summit, a title that is more representative of industry sentiment.

Alon Goren, Partner at VC Firm Draper Goren Holm , Discusses Blockchain & Digital SecuritiesWhile organizing a series of successful conferences on the West Coast, Goren and Holm have also launched a VC fund – one that gained additional exposure when Tim Draper joined as a venture partner, a huge win for the young VC firm. Draper is a high profile billionaire VC who has long been bullish on Bitcoin and blockchain in general. This new relationship should help the Draper Goren Holm “Blockchain Venture Studio,” gain access to the most promising startups in the digital assets sector.

Today, the VC firm includes some well-known startup names in their portfolio including; Vertalo, Ownera, innovesta, CasperLabs and more.

Before the end of the year, Crowdfund Insider had a chance to catch with Goren. Our conversation is published below.


The blockchain sector has changed quite a bit in the past two years. You have experienced the rapid rise of ICOs to the shift to digital securities. What are your thoughts on that?

Alon Goren: Although all of my idealistic tendencies hope and wish that we can push everything closer to decentralization, I know that that is unrealistic for many or even most assets. What I know that we can definitely do is use technology to streamline the process and help people participate in the jurisdictions that are the least restrictive in a compliant and simple manner.

True digital securities have the potential to do this and so I’m very excited to support that shift.

As an active VC in the DLT / crypto space, where are you looking now? Protocols? Service providers? All of the above? Other?

Alon Goren: I love investing in the services that will support this new infrastructure and this new economy. That said, Ownera, one of our biggest bets is building the infrastructure later and we are looking for companies to invest in that will be building on top of that.

We are pretty general in terms of what we invest in, but I am actively looking for NFT/gaming companies because I am very passionate about that group but have not yet participated in it from an investment perspective. I would also love to find some companies solving identity problems…

What about outside the US?

Alon Goren: An amazing entrepreneur is an amazing entrepreneur where ever they are in the world!

The digitization of securities is a given but this will take time. How do you expect digital securities to evolve?

Alon Goren: I think it’s going to go to the trajectory of most consumer technologies… They will be adopted in the workplace by the enterprises and then followed by mainstream adoption.  In the digital securities space, I think this will manifest through large financial institutions digitizing large banking deals, existing portfolios, and assets and then later by smaller companies (through regulated financial institutions) and then mainstream adoption through things like a real estate crowdfunding and ownership of public stock, bonds, etc…

Josef Holm and Alon GorenI believe in the advent of “esoterics” – the securitization of assets that previously were not cost-effective to pursue. What are your thoughts on this concept?

Alon Goren: I love it! I just bought shares of a magic card through mythic markets and it was epic! When this scales, collectibles are going to be so much fun to buy and trade on the Internet even if they’re fractions of multi-million dollar pieces that we could not previously attain.

Any Predictions for 2020? Comments on 2019?

Alon Goren: I think that it has been a very impressive year in terms of technology build-out and institutional intentions and announcements. I think that there are going to be some big entrants in 2020 and although it will be a slow start and ramp up, we are going to get our marquee deals that are discussed in the mainstream and this industry will begin to start looking like a real industry! It’s going to be very exciting!

Before we know it, all securities will be digital securities just like all businesses are now what we would’ve called an Internet company 10 to 20 years ago. One in the same…


Before we know it, all securities will be digital securities #Blockchain #DigitalAssets

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Another Malicious Crypto Wallet App Stealing Private Keys and Data

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Another Malicious Crypto Wallet App Stealing Private Keys and DataHarry Denley, director of security at MyCrypto, “an open-source…tool for generating ether wallets,” has warned the public about a malicious crypto wallet app called “Shitcoin Wallet,” which, according to Zero Day, “was caught injecting JavaScript code on web pages to steal passwords and private keys from cryptocurrency wallets and cryptocurrency portals.”

Shitcoin Wallet reportedly became available for download at the Google Chrome web store on December 9th. At press time, the Shitcoin Wallet is no longer available at its Google Chrome address.

Denley says any funds run through the Shitcoin Wallet extension could be lost. The application also installs malicious JavaScript code designed to steal login details and private keys when people interface with 77 websites, including several popular cryptocurrency exchanges and storage applications.

Affected legitimate applications allegedly included:

  • MyEtherWallet.com, Idex.Market, Binance.org, NeoTracker.io, and Switcheo.exchange.

According to Zero Day, “Once activated, the malicious JS code records the user’s login credentials, searches for private keys stored inside the dashboards of the five services, and, finally, sends the data to erc20wallet[.]tk.”

As well, “It is unclear if the Shitcoin Wallet team is responsible for the malicious code, or if the Chrome extension was compromised by a third-party. A spokesperson for the Shitcoin Wallet team did not reply to a request for comment before this article’s publication.”

Shitcoin Wallet is one of many cryptocurrency-stealing “wallet apps” in circulation.

Several wallet scams are profiled in Harry Denley’s end-of-year crypto security blog post, including, “The CCB Cash extension…designed to steal your login credentials… (which) stole over 12 BTC.”

Denley also wrote about scams stemming from cryptocurrency airdrops, whereby exchanges or token projects give away free crypto tokens for promotion.”Unsolicited airdrops can be useful(?),” Denley writes, “but be vigilant to inform yourself as to what they are advertising. This story investigates a big airdrop campaign that ties into a fake MyEtherWallet UI to steal your wallet secrets!”

Denley also wrote about Android APK’s (Android Package Kits) impersonating the Trezor hardware wallet, MetaMask and My Crypto Android and, “designed to steal your wallet secrets (private keys, mnemonics, etc.)…”

Reactions to the news about Shitcoin Wallet have been varied, with Ted Ahern musing on Twitter: “If you can’t trust Shitcoin Wallet, who can you trust?”



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U.S. Law Firm Sued for Advising “Crypto Assets are Not Securities”

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U.S. Law Firm Sued for Advising "Crypto Assets are Not Securities"A Delaware-registered company called Digital Capital Management is suing law firm Faegre Baker Daniels for allegedly providing “erroneous” legal advice in 2017 that greenlit establishment of a cryptocurrency/digital token investment fund.

The story was broken by Bloomberg Law.

The fund, Crypto Asset Management LLC (CAM), and plaintiff Timothy Enneking were subject to an SEC enforcement action in 2018.

The SEC action alleged that Enneking and the fund raised more than $3.6 million USD, “from 44 investors, primarily individuals, residing in at least 15 states,” while failing to properly register as an investment company. According to earlier reports, after being contacted by the SEC staff, CAM apparently ceased its public offering and offered buy backs to investors.

Enneking alleges that Faegre Baker Daniels told him the “Funds should be offered under Regulation D via Rule 506(b) as opposed to Rule 506(c).” But the plaintiff allegedly received poor advice as to registering under the Investment Advisers Act of 1940.

As well, “Defendant further advised Plaintiffs that Crypto Assets are not securities and to structure CAF’s and the Fund’s business accordingly.”

Following the enforcement action, the legal malpractice suit claims, Enneking and his firm, “were censured and agreed, without admitting or denying the order’s findings, to pay a $200,000 civil money penalty to settle the SEC’s claims.”

The suit says Enneking paid, “various costs and fees, including but not limited to attorneys’ fees, in connection with CAM and the Fund…” and, as a result of the enforcement action, “sustained damages of more than $75,000.”

The plaintiff also claims to have, “sustained reputational harm and other damages.”

Enneking et al. seek relief, including “damages according to proof at trial,” “pre- and post-judgment interest at the applicable statutory legal rate(s),” “costs of this action,” and, “further relief as may be just and proper.”

A number of lawyers/firms moved into advising crypto startups and funds when the field spiked around 2014.

Some firms believed, or at least claimed, that the “digital assets” being sold would provide “future utility” on a computer software network yet to be built and were therefore more like “utility tokens” than securities.

Some lay commentators, including Tone Vays, scoffed at the idea, claiming that using a speculative token to access a (future) network was like, “buying things on Amazon with Amazon stock.”

How tokens should be legally defined proved perplexing for many, and many proceeded to market with tokens that the SEC later deemed securities.

Sellers of “cryptoassets” have argued that the SEC’s definition of securities is outdated and “stifles innovation.” Meanwhile, “blockchain” and other token-financed tech have yet to revolutionize various fields as promised.

Former SEC Chief of the Office of Internet Enforcement John Reed Stark has been very critical about the social harms cryptocurrencies enable.

At the end of a lengthy recent article, Stark called out “crypto lawyers” for enabling often unregulated cryptocurrency projects:

“Sadly, too many of the shamelessly self-anointed Fintech attorneys, who practice within the crypto-space, are of little help and have at times actually exacerbated an already dire situation. Some not only blindly facilitate the criminal norms of the cryptocurrency marketplace, but their law firms also blithely encourage cryptocurrency transactions by accepting Bitcoin as a form of payment for their legal services. It seems that some lawyers and their firms have become so desperate for fees that accepting Bitcoin blood money seems somehow justifiable.”

“This last point about lawyers and cryptocurrency hits home and bothers me the most. Because when ransomware gets worse (which it will) and people die as a result (which they will), someone somewhere will undoubtedly ask: where were the lawyers?”

“First formulated by the legendary Stanley Sporkin about corporate misdeeds decades ago when he was head of the SEC Enforcement Division in the 1970s and then as U.S. federal district judge from the mid-80s onward, this damning question has been repeated in every major financial scandal since.”

 

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Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

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World War 3 worries? Meh, we’ve got The Fed to handle that shit!!

Weakness in early going in stocks – due to the potential for global war after Soleimani’s killing – were nothing but an opportunity to buy the f**king dip once again today…(as the machines used VWAP as support)…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

As the market immediately priced in a Fed rate-cut to save the world…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Oil prices spiked but ended only around 3% higher on the day…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Of course, defense stocks soared…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

But bonds and bullion were bid as safe-havens…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

On the week, only Nasdaq is notably higher…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

And since the start of 2020, only Small Caps are red…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

VIX and stocks remain decoupled…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Credit markets widened notably today, relatively more than equity protection…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Treasury yields collapsed since the start of 2020 with 30Y yields down 13bps…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

The 30Y Yield dropped to 4-week lows…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

The yield curve flattened dramatically…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

The dollar rallied for the second day in a row (despite some volatility today)…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Cryptos were notably bid today following the Soleimani killing…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

After another drop below $7k, Bitcoin surged today…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Copper tumbled today as gold and oil rallied…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

Gold topped $1550 – back to its highest in 4 months…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

And as Bloomberg reports, heightened Middle East tensions are boosting bets on further gains for gold as a haven asset. Volatility in call options giving holders the right to buy futures at a pre-set price reached the highest in almost three months against puts, which provide the right to sell the metal.

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

The skew shows that investors are increasingly bullish on bullion, even with prices already near a six-year high in the wake of the U.S. air strike that killed a top Iranian commander.

Source: Bloomberg

Finally, US macro data is negative and disappointing notably (today’s ISM at 10 year lows) with stocks just shy of record highs…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

And some remember what happened last time…

Stocks Shrug Off World War 3 Risk, But Bonds, Bullion, & Bitcoin Surge To Start The Year

Source: Bloomberg

 

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