SEC Regulations and SEC Vision Are Two Completely Different Things: What Does It Mean for Ethereum?

sec and eth

The Securities and Exchanges Commission is the most influential organization in the US when it comes for crypto. If the SEC officially disapproves a project, this project is doomed. Crypto exchanges, crypto companies, ICO startups all comply with the mighty SEC.

However, it is important to distinguish when the SEC comes out with an official statement and when the SEC representatives declare their thoughts and opinions on a particular issue.

This is what the report published by Jay Clayton on the official website of the SEC is about:

Statements issued by SEC staff frequently include a disclaimer underscoring the important distinction between the Commission’s rules and regulations, on the one hand, and staff views on the other.”

This leads us to another thought. So far the crypto community was sure the SEC did not consider Ethereum a security on the official level. However, now it turns out that it was just the point of view of the abovementioned Jay Clayton.

Thus, Ethereum (eth news) might still be a security after all. Hopefully, it will boost its exchange rate a little, since it hasn’t been particularly high these couple of weeks.

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LinkedIn Names “Blockchain Developer” the Top Emerging Job of 2018

LinkedIn, a social network for finding business contacts and job opportunities, has published its annual Economic Graph, where it listed top-5 emerging jobs that develop at the quickest pace among the others. It did not come as a surprise for many people that the top-1 emerging job was “blockchain developer”.

The profession of a blockchain specialist has experienced a growth by 33% during 2018. In comparison, the job that occupied the 2nd place, a machine learning engineer, grew by 12%. The rest of the top-5 are: application sales executive, machine learning specialist and professional medical representative.

The cities with the highest demand for blockchain specialists are New York, San Francisco and Atlanta, and the top industries involving such workers are IT and computer software. The salaries absolutely correspond to the popularity of the profession.

We remind you:

Facebook Is Once Again Looking for Blockchain Specialists

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Germany’s Stuttgart Exchange Group Will Open Up a Crypto Exchange with No Commission Fees

The second largest stock exchange in Germany Stuttgart Exchange Group is partnering up with SolarisBank to create a zero-fee cryptocurrency exchange. The first plans of this project emerged back in May of 2018, however, right now the two parties have actually started to work on implementing it into life.

SolarisBank’s blockchain factory helps us to take the trade in cryptocurrencies and tokens to a new level and set standards in transparency and reliability,” Alexander Höptner, the CEO of Stuttgart Exchange Group, commented on the cooperation.

The new exchange claims to have zero commission fees. It will offer trading opportunities for Bitcoin and Ethereum, as well as the protection for up to 100 thousand Euro.

We remind you:

The Authorities of South Korea Licensed the First Crypto Exchange in the Country

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A Major Exchange in UAE Is Going to Cooperate with Ripple

According to the report of the news media Reuters, a large payment company located in the United Arab Emirates, UAE Exchange, is going to collaborate with Ripple Labs and work on the cross-border payments all over Asia. The Asian market occupies a huge share of the world’s annual remittance (around 613 billion), thus, this niche is highly demanded.

The CEO of the Exchange Promoth Manghat is sure that the payment network of Ripple based on the blockchain technology will become a breakthrough on the Asian market, however, the company will proceed slowly going “fully mainstream”.

We expect to go live with Ripple by Q1, 2019 with one or two Asian banks. This is for remittances to start with, from across the globe into Asia,” he said.

We would like to remind you that Ripple Labs has recently been partnering up with multiple major businesses regarding its cross-border payment system.

South Korea Launches Remittance App Using Ripple’s Blockchain Technology For The First Time

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The Most High-Profile Scam Projects of 2018

The unfortunate fact, that the ICO market is dying. According to the Satis Group data, more than 81% of the market is a dead projects. The ingenuity of crypto fraudsters was the cause of investors lack of confidence.

It is worth talking about the most prominent scams, that might have destroyed ICO in 2018 as a transparent manner of investment.

Ifan and PinCoin – $660 million

This two crypto startups took the first place, just because they are running money scams of Vietnam Modern Tech company.

The founders promised 570% annual investment. Which sounded well for investors. Because everybody want a high income.

It was impossible to resist from Modern Tech offers, because the marketing was brilliant. The project gave a bonus per each engaged investor.

Now we can tell that initially it was an obvious scam. But no, the crypto fraudsters planned everything to a small detail. But in the end, word always gets out. The mass action in front of the Modern Tech office was triggered by the fact that cryptocurrency media began to publish information about the dark deeds of the company. During the mass action, investors demanded a refund.

In the end, 32 thousand of investors were cheated and the founders escaped with $660 million. Ironically, Ifan and PinCoin were guilty, but have not been punished for the crime.

PlexCoin – $15 million

The United States Securities and Exchange Commission (SEC) undertook the scam situation. That’s why it deserves attention.

Scam projects on the ICO market is like an infection which should be treated at the beginning. The PlexCoin was cured before it caused a significant damage.

The creators of PlexCoin promised a great profit for the investors. This project promised 1300% profit per month. “PlexCoin will be the first cryptocurrency by capitalization, which will eliminate Bitcoin”, said creators. This assumption was a trigger for the SEC.

Dominic Lacroix, the creator of this scam, was charged and entailed to legal responsibility  with “willful distortion provided to investors” by French Financial Markets Regulator (AMF). Following the example set by AMF, the SEC filed a complaint and demanded to suspend the ICO.

During the investigation of the project it was suspended by a lawsuit. Without accepting the restrictions and continuing the sale of fake project tokens, Lacroix was fined $10 000 and deprived of his liberty for a two months.

PlexCoin has earned about $15 million. Ironically, the fraudsters were fined $100 thousand.

BitConnect – presumably, several millions

This is a fine example of fraud field. For two years, it was pulling out the money from gullible investors. BitConnect was launched in 2016 at the peak of hype.

The point of deception was simple: “Invest more – gain even more”. They promised that if they don’t withdraw the funds for 120 days then the profit will be 365%.

Due to the fact that in December 2017 the cost of the BitConnect token was $463, the states of Texas and North Carolina have turned their attention to it. They made the accusation due to unregistered distribution of securities. This reduced the price of the token by 90% and became $ 5.92 per coin.

But, after 2 years of existence, in January, the project disappeared from all the exchanges, and investors were left with nothing,according to the preliminary estimates, they have lost several million dollars. And of course they filed a class action amounting to $700 thousand.

Divyesh Darji managed project from Surat, India and was arrested in the summer of 2018 during the investigation.

Benebit – from about $3 to $4 million

The criminal schemes of Benebit for the ICO market were just perfect, unlike the projects presented above. Everything was at a high level, the project held top places in ratings, there was high activity in social networks, the PR manager did a titanic job. The Benebit activity was brilliant.

But they were revealed by smallest detail. It was because of  photos which they took from the school site, which were noticed by an unknown person. After this all got out, the creators turned off the site, accounts and went into hiding.

During the investigation nobody would think about verification of the authenticity of documents. It turned out that the passport data used by the promoters for work was fake. Another outstanding problem is the rating: how did he get such high marks and who did let that happen?

Conclusion

This is TOP scam projects which should become a lesson to investors. They made a list of “finest scam of 2018” by The Coin Shark, only for the uniqueness of fraud methods.

For example, in ICO Ifan, PinCoin and PlexCoin the investors were attracted with high profit. They were so blind that they did not notice the warnings of the experts.

PlexCoin was the first scam, in which the SEC interfered. As for PinCoin and Ifan they are extraordinary. Since the creators have been found, but not punished.

Benebit startup was unique by the fact that $500 thousand were invested in it under the guise of professional marketing. On the example of this project, we can see the gaps in the system of regulation of IСO.

BitConnect surprised us by the fact, that its financial pyramid was so obvious that it allowed to hide in plain sight. This is a good example of aggressive marketing and the greed of investors in getting money.

In fact, man’s recklessness is the root of the absence of confidence problem to ICO and not such projects. Everyone thinks that this will not happen to himself. But it will, if you are not reasonable and do not check the information about the project in which you intend to invest.

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SEC Obliged AriseBank Creators to Pay Indemnities and Penalties Amounting to $2,7 Million

Jared Rice Sr., the former CEO of AriseBank company, and the former operating officer Stanley Ford, did not admit their guilt in conducting the fraudulent ICO. According to U.S. Securities and Exchange Commission (SEC), they both agreed to out-of-court settlement.

The U.S. Federal Court obliged them to pay $2.26 million as a compensation for damage, both $184,76 thousand as a fine, in addition to $68 thousand for expenses. As well as, in addition to pay penalties, they could be sentenced to a life ban from leading the projects or participating in the issuance of securities.

Reportedly, Rice did not have access to FDIC insurance and had no partnership with Visa, to offer banking services in Texas. Moreover, Rice has spent investors’ money for his own personal use, while repeatedly talking to mass media about the “non-existent” advantages of AriseBank. In addition, the police believe that Jared Rice Sr. hid from the investors the fact of his previous conviction for fraud and accusations under other charges.  

We want to remind you, that recently SEC have declared their intention to fine social media celebrities who promote scam-ICO in social networks.

SEC Is Going to Fine Social Media Celebrities Who Promote Scam ICOs

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Hyperledger Will Add 16 New Members

The major blockchain project Hyperledger, the technologies and instruments of which are incorporated in multiple other startups all over the world, announced its future cooperation with 16 giant companies.

The list of new members includes:

  • Citi
  • Deutsche Telekom
  • Alibaba
  • etc.

The growing Hyperledger community reflects the increasing importance of open source efforts to build enterprise blockchain technologies across industries and markets,” said the CEO of Hyperledger, Brian Behlendorf.

In this way, blockchain will be promoted in the major businesses of the world, which undoubtedly means its growing popularity in almost every sphere of human activity.

We remind you:

Visa Partners with IBM to Implement Cross-Border Blockchain Payments of Hyperledger Fabric Framework

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