Connect with us

Cryptocurrency

Security Tokens: The next big thing in cryptocurrency

Published

on

Security tokens are being advertised as the next big thing in the world of cryptocurrency. While SEC has said that every token issuance is a security.

Security tokens are being advertised as the next big thing in the world of cryptocurrency. While the SEC has basically said that every token issuance is a security even though the company’s claim to be a utility token.

 

Security tokens

Security tokens may represent shares in a company or provide dividends and are generally thought of as being much more similar to traditional shares. Basically, an investment of money where there is some kind of expectation of a profit on the other end.

The big difference between security tokens and the utility tokens maybe that the securities fall under a very heavy scrutiny and regulation than the utility token industry. Many Initial Coin Offerings do have a hard time finding the actual difference and are almost always somewhere in the middle of those two definitions.

 

Blockchain and Securities Market

The potential for Blockchain to disrupt the Securities Market is massive. Firstly, Blockchain will offer complete transparency for regulators who can verify transactions on the blockchain, thus making KYC and AML much easier. Blockchain will also reduce the market manipulation due to increased transparency of who has what. Blockchain can lower the friction cost by 90% and also massively lower the transaction time. This offers a potential to have a massive influx of liquidity coming to the securities market by tokenizing everything.

Security tokens will make capital investing truly global by inviting a much wider range of investors. It will introduce a huge degree of multi-asset interoperability which will all be storable on your ledger. The disruption of blockchain to the securities market could be compared to what email did to the postal system.

 

While there is a lot of hype about security tokens, the industry is still in its absolute initial stages. However, the Security Token Offering boom could be much bigger than the Initial Coin Offering boom ever was.

 

What are your thoughts on security token offerings? Tell us in the comments section below.

#Exchange

The Death of Cryptopia: How it all Happened?

Published

on

Cryptopia has now gone into liquidation and suspended trading operations with them saying that they have been unable to reduce costs and to be profitable.

After the Cryptopia exchange was hit by a big hack back in mid-January which resulted in a loss of around $16 million in Ethereum and other ERC20 tokens, it has been struggling to reopen and find any kind of relevance.

 

Cryptopia decides to liquidate:

The matter of hack was made worse by the fact that the exchange was already becoming completely irrelevant at the time of the hack. Cryptopia has now gone into liquidation and suspended trading operations with the company saying that they have been unable to reduce costs and to be profitable.

 

It was decided that liquidation was the best path forward for all the stakeholders. While the liquidation takes place, all trading and withdrawals have been suspended and the process may take months to resolve.

 

The users still have their funds locked up in the exchange and they are unable to withdraw them because Cryptopia controls the private keys. If ever it becomes possible for the users to withdraw their cryptocurrencies remains to be seen.

 

What kind of obligations will the exchange have to the stakeholders may impact the kind of obligations they have to their users and the funds of the users that are stuck on the exchange.

Continue Reading

#IEO

SEC Might Crackdown Crypto Exchanges that carried out IEOs

Published

on

The Securities and Exchange Commission might start looking into US-based cryptocurrency exchanges that have carried out IEOs.

The Securities and Exchange Commission might start looking into US-based cryptocurrency exchanges that have carried out IEOs. That could mean that Bittrex, KuCoin, Huobi, and Binance could all be in the spotlight here.

 

SEC Cracking Down Exchanges and IEOs?

In spite of not offering these products to Americans, but the fact that these cryptocurrency exchanges allow American customers to trade cryptocurrencies on their platform may be enough for the SEC to crack down on them.

 

The SEC is claiming that cryptocurrency exchanges may be operating as unauthorized securities declared under US securities laws if they take a fee for facilitating that token sale or are offering to bring buyers in for the issuers of the tokens which basically describes that an IEO model is.

 

Assuming that the SEC doesn’t nuke the cryptocurrency markets by making exchanges cancel all the IEOs, 2019 seems to be gearing up for a mass influx of STOs and IEOs when we see the number of ICOs dropping off substantially with estimates putting the number of STOs to double by the end of the year and the number of IEOs to triple by the end of the year. This is due to the fact that Initial Exchange Offerings are generally much better for the company that is offering the token.

 

What do you feel about this? Do you think that its a good thing that the SEC is cracking down on the exchanges and the IEOs? Tell us in the comments section.

Continue Reading

#Rumor

Ebay: No Plans of Accepting Bitcoin, Cryptocurrencies

Published

on

eBay has responded to the ongoing rumors that they are going to start accepting cryptocurrencies as a payment saying that they have no plans to do so.

eBay has responded to the ongoing rumors that the e-commerce and online auctions website is going to start accepting cryptocurrencies as a payment saying that they have no plans to do so.

 

eBay to accept cryptocurrency payments? Not Yet!

The rumors started to spread throughout the cryptocurrency industry after photos of the advertisements of eBay the Consensus event went viral. The advertisement read: “ Virtual Currency. It’s Happening on eBay.”


People were linking the current sudden bullish trend in the price of bitcoin to the e-commerce giant and online auctions site preparing to accept cryptocurrency payments.

 

The adoption of cryptocurrency by eBay which quotes itself as the world’s largest marketplace would have been a great move towards mainstream adoption and thus everyone around the cryptocurrency space was busy discussing the rumor. However, according to a recent report published by Bloomberg, eBay has denied the rumors saying that it has no plans to start accepting cryptocurrency payments.

 

An eBay spokesman said in the report that cryptocurrency (such as bitcoin) is not accepted as payment on the platform and it is neither the part of their payments strategy.

 

However, currently, eBay does have a section on the platform which reads Virtual Currency, however, on this section, the users can use fiat currency to buy cryptocurrency from sellers.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.