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Investors in German ICOs Have Suffered Losses as High as 90%

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Investors in German ICOs have lost up to 90 percent of their capital, Cointelegraph auf Deutsch reports Monday, October 1.

German business magazine WirtschaftsWoche compared the token issue prices of Initial Coin Offerings (ICO) carried out by German startups with the prices of early September 2018. The report found that, with up to 90 percent loss in value, the German startup coins lost even more value than lead coins like Bitcoin (BTC) and Ethereum (ETH), which have also fallen sharply following record highs at the end of 2017.

WirtschaftsWoche has found that, so far, only eight startups with a head office in Germany have completed an ICO. Many other German ICOs were carried out by legally independent companies abroad. The coin of financial group Naga, which is listed on the Frankfurt Stock Exchange (Frankfurter Börse) was bought by Naga Development Association Ltd. and issued in Belize.

Among the numerous German token publishers, only the financing platform Neufund and the shopping app Wysker managed to keep the value of their tokens stable. Five other projects, such as the Frankfurt financial start-ups Savedroid and Iconiq Lab, have lost between 40 and 92 percent in value, respectively.

Last summer, IT industry association Bitkom reported that German IT startups continue to prefer a classic Initial Public Offering (IPO) over an ICO for raising capital. In a survey of 302 IT and internet startups, 22 percent of respondents reported that they planned to go public, while only three percent said they wanted to raise funds with a token offering.

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Anti-Money Laundering Acts Amended to Regulate Virtual Currencies to Taiwan

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The Legislative Yuan passed amendments Friday to existing anti-money laundering and terrorism financing prevention laws that regulate transactions of virtual currencies such as bitcoin to help combat online financial crimes.

The amendments to the Money Laundering Control Act and the Terrorism Financing Prevention Act give Taiwan’s Financial Supervisory Commission (FSC) the authority to crack down on anonymous virtual currency transactions.

The FSC can now demand that operators of virtual currency platforms, including bitcoin, implement “real-name systems” that require users to register their real names, according to the new provisions.

If they don’t, banks can reject anonymous virtual currency transactions and report them to the FSC if they deem them suspicious.

The Ministry of Justice (MOJ) said the amendments not only align Taiwan more closely with international standards but also make Taiwan’s anti-money laundering system more complete and support efforts to build a culture that values legal compliance.

A compliance culture and mindset is an important part of effectively fighting money laundering, and that culture and mindset can only be fostered through good habits and practices in the operations of local companies and institutions, the MOJ said.

Although the Money Laundering Control Act was amended in 2016, it has not fully prevented related financial crimes, the MOJ said, and the ministry expected the new amendments to help Taiwan perform better in its upcoming evaluation by the Asia/Pacific Group on Money Laundering (APG), which will take place from Nov. 5 to 16.

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Taiwan to Regulate ICOs

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The chairman of Taiwan’s Financial Supervisory Commission (FSC), Wellington Koo, has reportedly confirmed that the commission is drafting national standards for initial coin offerings (ICOs). The FSC aims “to make virtual tokens as easy to invest in as stocks and just as liquid,” the Taipei Times reported on Oct. 23.

At a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers worldwide were found last year to be fake, the publication described, adding that 80 whitepapers were found to be inaccurate as of April. The legislator also quoted findings from Satis Group showing that 81 percent of ICOs have been identified as scams.

In May, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed industry organization, said it found 421 fake cryptocurrencies. Independently, the Wall Street Journal analyzed 1,450 ICOs and “found 271 with red flags that include plagiarized investor documents, promises of guaranteed returns and missing or fake executive teams.”

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Crypto M&A is on a Tear as Deal-Makers See Opportunity in Bitcoin’s Price Slump

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Deal-makers seem to be anything but deterred by bitcoin’s price pain this year — they’re actually using it as an excuse to go bargain hunting. Despite the ongoing bear market in the sector, merger and acquisition activity by cryptocurrency companies among themselves and by companies hunting for bitcoin’s underlying technology is hitting record levels.

Total blockchain and crypto-related deals have surged more than 200 percent at an annualized rate this year, according to data from PitchBook that was compiled by JMP Securities. Bitcoin, meanwhile, has lost 54 percent of its value.

As of Monday, 115 deals involving cryptocurrency or blockchain had been announced, on pace to hit 145 by the end of 2018. The count is up significantly from the 47 total deals completed last year, when bitcoin’s price was surging to almost $20,000.

While JMP didn’t have data on the average size of the deals, since many of the details are private, the firm said a majority of the M&A transactions are global in nature and “relatively small” at less than $100 million. The PitchBook data includes majority investments, partial liquidation and full acquisitions.

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Most Tokens From ICOs Are Securities, Former CFTC Head Says

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Most Tokens

Gary Gensler, former chairman of the U.S. Commodity Futures Trading Commission, said that most cryptocurrencies sold through initial coin offerings should be considered securities.

A classification by the U.S. Securities and Exchange Commission would subject the coins and exchanges offering them to greater scrutiny.

One of the ways regulators determine whether an asset is a security is with the so-called Howey Test. For Gensler, coins such as Ether would have initially met the requirements of the test as there’s an investment of money in a common enterprise, and the expectation of profit which comes from the efforts of a third party. Ether has since become decentralized, he said.

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HBUS Announces First Ever PAI Coin Listing And Giveaway To U.S. Audience

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Coin Listing

HBUS, one of the fastest growing U.S. digital currency exchanges, today announced the listing of PAI Coin on HBUS’ digital currency marketplace. The listing will coincide with a 125,000 PAI Coin giveaway to new registered HBUS users. PAI Coin is developed by Project PAI, an open-source project developing the world’s first blockchain-based platform for intelligent 3D AI avatars.

“HBUS is committed to introducing groundbreaking blockchain projects to the American audience with disruptive potential,” said Frank Fu, CEO of HBUS. “Project PAI has shown the vision and ability to execute on the evolution of artificial intelligence as it relates to each and every one of us.”

HBUS is the U.S. partner of Huobi, one of the world’s largest digital currency marketplaces, and offers a wide variety of tokens and giveaways to the American audience. The promotion will take place from October 10th to October 24th, with deposits open on HBUS’ digital currency marketplace on October 10th and trading beginning October 11th. Makers will enjoy 0 trading fees and takers will enjoy 0.03% trading fees for PAI trading pairs (PAI/USDT, PAI/ETH, PAI/BTC) for the duration of the promotion.

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Twitter Promoted a Fake Elon Musk Crypto Giveaway Scam

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A verified Twitter account masquerading as Elon Musk was used to publish and circulate a promoted tweet for a crypto giveaway scam Thursday morning.

The since-deleted tweet was posted through the account @TylerFlorence, which as of press time is still accessible. A link posted to the tweet directs to a giveaway site (which CoinDesk is not linking), prompting users to “sеnd frоm 0.2 to 5 BTC tо the address bеlow and gеt frоm 1 to 100 ВTC back!”

The news triggered an outcry from users who saw the tweet, renewing scrutiny of the social media platform’s anti-scam practices.

The incident is notable given that it involved a verified account but also that the scam information was circulated by way of a promoted tweet. Promoted tweets are paid for and are generally used by advertisers to reach a wider audience than they normally would through their existing network of followers, taking advantage of search trends (in this case, the public interest around the controversial Tesla CEO) to boost performance and visibility.

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New Zone to Opt for ICO Instead of an IPO in Singapore

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New Zone

The Multi-Billion dollar turnover company specializes in ferrous and non-ferrous metal trading in different forms. In the ferrous industry, New Zone holds a special spot among the top traders of Galvanized Steel and Hard Steel Sheet Coils. As for non-ferrous metals, Nickel Cathodes and Zinc Ingots are the primary products. New Zone has two subsidiaries, New Alloys Trading Pte Ltd. in Singapore and Mine Craft Limited in Hong Kong. The subsidiaries mentioned above execute holistic operational needs for New Zone.

We will not be limiting ourselves with Hard commodities; this digitalization will help us reach more people with Agricultural and Energy based commodities. There are no substantial usage of Cryptocurrency and Blockchain technology in the much-needed agricultural industry.

With a trading volume of about $2 Billion, and clients like Trafigura and Glencore Xstrata, New Zone team seems like a strong enough force to raise a massive $1.5 Billion, the proposed Hard cap in the ICO. Although, the team understands the different challenges associated with other crucial details like the integration of ETF’s, and the different aspects of white label offering, New Zone is ready to get the best solutions for every challenge. New Zone will be releasing New Zone Iron to New Zone Oil tokens, ensuring that the white label process is carried out with relative ease by companies of other countries.

A big step will be the incorporation of ETF’s using New Zone tokens for our retail investors. The whole process is a little tricky, but we are up for it- Leadership Team New Zone. One noteworthy feature that the company focuses on is the availability of the white label franchise, which the company says will be started once the project completes its second phase.

“We wish to bridge the gap between commodities and Cryptocurrencies, which is why we are bringing New Zone Tokens,” added the leadership team at New Zone. It goes without saying this is a crucial ICO to look out for; New Zone brings something unique to the whole ICO fad. The company also claims to be the world’s first crypto friendly commodity trading platform.

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South Korea to Decide on ICO Legality in November

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The South Korean government will make a decision in November on whether it will allow initial coin offerings (ICOs) again in the country, a top-level official has said. Hong Nam-ki, head of the office for government policy coordination, told lawmakers during the National Assembly’s annual audit on government actions that regulators in the country have been reviewing the topic in recent months, as CoinDesk Korea reported on Thursday.

Hong added that the Financial Services Commission (FSC), South Korea’s market watchdog, has been conducting surveys on ICOs since September. “We are going to form the position of the government in November based on the results of the investigation at the end of October,” he went on to say.

“If we waste time, the blockchain industry could face huge difficulties. We need to look at very realistic and specific ways to nurture the blockchain industry, and I think permitting ICO is one of them.”

Hong was responding to the question on ICO permission raised by Jeon Haecheol, a lawmaker from the ruling Democratic Party, who voiced support for lifting the current ICO ban.

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Secure Token Trading Platform Closes Gap Between Traditional and Crypto Finance Worlds

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Secure Token

Extauri is Europe’s first secure and compliant trading platform for cryptocurrency tokens, fiat currency, and traditional banking products such as stocks, bonds, and ETFs. Extauri’s mission is to build awareness and acceptance of cryptocurrency as a safe and profitable class of investment. Extauri is closing the gap by offering an innovative financial platform to combine the advantages of blockchain technology with the secure products offered by the conventional banking system.

“The main issue in the existing market is that you have security tokens, but they can’t be traded on a public exchange. Token security is very important to the viability of future finance projects seeking alternatives to bank financing. This is possible with Extauri due to our secure model and licensing,” noted Domenik Gerapetritis, CBDO & Co-Founder

Presenting exclusive protection against fraud by users and operators of the exchange, Extauri is equipped with an electronic communications network (ECN) license, is approved by FMA and BaFin, and adheres to the standards of the Economic and Monetary Union of the European Union.

Security and compliance are integral to Extauri’s vision. The platform does not rely on third-party solutions, but on the firm’s own developers and infrastructure. This is part of how Extauri meets financial security standards. Whereas most exchanges rely on external frameworks, Extauri’s in-house development approach eliminates the potential for foreign and unknown source code or ‘backdoors,’ ensuring the integrity of the ledger.

“Security of cryptocurrency, and investment are our key principles. Existing platforms are largely outside banking regulations and lack transparency. We handle the legal and technical side of things, so you don’t have to,” reflected Tino Cabero, CEO & Co-Founder.

An innovative component of Extauri’s trading solution is the self-managed My Admin Wallet. Only the user knows the private key. Extauri has no access to the wallet, providing the user with complete anonymity. Only the transaction is processed by Extauri’s systems, protecting against misuse of data by third parties. Offering this protection at no additional cost, Extauri exemplifies its key values in security, privacy, and self-determination.

Led by a dedicated team of experts in crypto, management, securities, IT, and development, the firm is after ‘something extraordinary.’ Extauri brings together sought-after talent across roles including finance, operations, technology, security, and software with the experience needed to deliver a secure platform and address future challenges.

Extauri’s trading process allows investors to connect to the crypto world in an intuitive, fast, legal, and secure way. Capital raised from the token sale will support platform implementation, IT security, legal department expansion, customer success team development, expansion of operations, and development of community systems. The securities exchange platform is setting the stage for the widespread acceptance of the crypto market and the adoption of blockchain technology in our daily lives.

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South Korea’s National Policy Committee Calls for Legalization of ICOs

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The chairman of Korea’s National Policy Committee has called for the legalization of initial coin offerings (ICOs), providing that a regulatory framework is put in place.

According to a report from CoinDesk Korea on Tuesday, Min Byung-Doo, who is a member of the country’s governing Democratic party, said that, with token sales becoming a global trend, “I do not want the ICO door closed completely … The state should not ignore [the issue].”

The policy chief spoke earlier Tuesday during 8th plenary session of the National Assembly, at which lawmakers posed questions to the administration.

In order to create trust in the industry, ICOs should also be regulated, Min stressed. However, the official pointed to reluctance on the part of the government to draw up new rules as a prevailing issue.

Specifically, he said that “fraud, speculation and capital laundering must be strictly prohibited,” and the crypto industry would need to self-regulate and introduce safety standards as well.

The country’s financial watchdog, the Financial Services Commission, announced a ban on ICOs in September 2017, although the law has not yet been enacted, according to the report.

The lawmaker pointed to the economic advantages of token sales, saying that while there is a pessimistic view of cryptocurrencies in some quarters, many token projects are seen as having a viable future.

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