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Estonian Blockchain Startup Targets $180 Mil in SAFT-Based ICO

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Many times blockchain startups choose to ban U.S. investors from participating in ICOs over regulatory concerns. At least one Estonia-based company is not shying away from the jurisdiction, as evidenced by a SAFT filing with the U.S. securities regulator for an ICO targeting $180 million. But the wheels on the ICO have only just started to begin to roll and there’s already controversy surrounding this future crowdsale.

NewTech Myning OU filed a Form D with the U.S. Securities and Exchange Commission in recent days for a fundraising event. According to the filing, the company was founded this year and is domiciled in Tallinn, Estonia

Hacked.com reached out to the individual listed on the SEC filing. This person, who asked not to be named, is identified on the filing as a board member, but it turns out the company did this behind his back. The individual is an attorney who was engaged to establish the company with bank accounts in accordance with regulation and money laundering laws.

“I was hired to establish the company and the company will eventually be sold and the name will change. I did what attorneys normally do – open the company’s bank account, etc. Then it will be given to the client so that the client can start operating. That’s the business I’m doing,” the attorney told Hacked.com.

The attorney asked the company a few days ago to stop using his name in association with the company, as he’s not a part of it. “I don’t know why my name is [on the filing]. It was news to me. Something was not agreed upon with me. I asked them to stop,” he said, adding “he hopes” they are complying. (another media outlet similarly reached out to this individual, in response to which he contacted the company and asked them to refrain from using his name.)

Bank Accounts

According to the attorney, the blockchain startup is not engaged with cryptocurrency mining, as the name of the company — NewTech Myning — might suggest. That name will change in the coming months. “There will be new names and a new shareholder,” he said, adding that he was not at liberty to disclose the details or focus of the project.

The attorney shares that the company currently has bank accounts in Estonia. He doesn’t know about the U.S. but said that the filing suggests they want to open something in the country.

NewTech Myning’s apparent reckless use of an attorney’s name in their public US filing at the very least requires an apology on the company’s part. ICOs have enough hurdles to overcome and there have been enough instances of falsely claiming someone’s association with a project for them to know better. Whether or not U.S. regulators take issue with it remains to be seen.

Estonia Rising

Estonia’s profile for cryptocurrencies is on the rise, perhaps more than any other Baltic state. The tiny country is known for its embrace of tech innovation, as evidenced by its role in bringing Skype to the world. Estonian officials have pondered the development of the country’s own digital currency, though those plans appear to have been scuttled.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 16 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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As Crypto Markets Grind Lower, Institutional Adoption Continues to Grow

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Two of Russia’s largest banks have launched portfolios dedicated to trading bitcoin and other cryptocurrencies, the local Kommersant newspaper reported Friday. The pilot projects are the latest examples of widening institutional acceptance of digital currencies in spite of the market’s recent correction.

Russian Banks to Offer Crypto Portfolios

Russians with bank accounts at Sberbank and Alfa Bank will soon be able to trade cryptocurrencies in a designated fund that will track price movements on some of the world’s largest exchanges. The portfolio, which is being overseen by the Bank of Russia, will include bitcoin, Ethereum and Litecoin.

Although the full list of assets has not been provided, the portfolio will be revised four times a year, with a trading algorithm balancing the holdings.

Sberbank is Russia’s largest financial institution, with the central bank owning 50% of its authorized capital. Alfa Bank is one of the country’s largest private banking institutions.

Although cryptocurrencies are largely unregulated in Russia, Justice Minister Alexander Konovalov recently confirmed that the asset class falls under the definition of “other property.” Two draft bills on cryptocurrency are still pending in the State Duma.

The Russian government had initially said it would ban cryptocurrencies as they could be use for money laundering and terrorist financing. As digital assets grew in popularity, government agencies took a decisive u-turn, with President Vladimir Putin even considering the launch of a state-backed cryptocurrency.

Institutions Preparing for Cryptocurrency Trade

Financial institutions from New York to London are planning to launch cryptocurrency trading operations in the not-too-distant future. An April survey by Thomson Reuters showed that one-in-five major banks are considering cryptocurrency trading in 2018, a sign that the niche industry is gaining mainstream acceptance.

Goldman Sachs has been gradually scaling its crypto operations in pursuit of a bitcoin trading operation that is expected to launch later this year. While Goldman won’t be trading bitcoin outright, it will serve in the capacity of market maker for bitcoin futures.

It has been argued that the first wave of institutional adoption of cryptocurrency was poorly timed given the market’s steep losses over the last two quarters. This has led to greater industry consolidation as major firms swept in to acquire cryptocurrency exchanges. Earlier this year, Monex Group announced it would acquire and rehabilitate Coincheck, a Japanese exchange that was hacked for $530 million. Goldman-backed Circle has also bought out Poloniex, one of the world’s largest digital exchanges.

In the realm of blockchain adoption, banks are pouring billions into new commercialization initiatives. According to a recent study by Greenwich Associates, blockchain budgets for major banks in 2017 swelled by 67% to $1.7 billion.

San Francisco startup Ripple has already brought on board hundreds of clients to test drive its blockchain-based payments and liquidity platforms. This includes big-name clients such as UBS, Standard Chartered and Santander.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 458 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Crypto Expert Maintains $60,000 Price Target for Bitcoin

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Back in January, cryptocurrency expert Phillip Nunn made two bold predictions: bitcoin will reach a low of $6,000 this year before rebounding to a high of $60,000. With his first prediction proving true, Nunn remains steadfast that the latter price point will also come to fruition in spite of recent market turmoil.

The Bulls Will Prevail

In a recent interview with BusinessCloud U.K., Nunn said market volatility will ultimately work in favor of bitcoin, leading to an historic rally before year’s end.

Referring to his January forecast, Nunn said “the prediction was based on, first of all, market volatility which we’re experiencing at the moment.”

Nunn, who heads The Blackmore Group and Wealth Chain Group, said his $60,000 price forecast is “absolutely” possible given bitcoin’s long-term trajectory and role in disrupting traditional sectors. However, at present, bitcoin and other digital currencies are at the mercy of market sentiment and price manipulation, given the relatively small size of the industry. Case in point: cryptocurrency trade volumes plummeted to around $9.5 billion this weekend, the lowest in over two months. Such low turnover makes crypto assets prone to extremely wild swings not unlike the price forecasts Nunn put forward in January.

“All the money that exists in crypto at the moment is from the public, so it’s all about market sentiment,” he said. “A flood of bad news can wobble the market, stuff like regulation. The industry is so small that there’s market manipulation.”

Ultimately, Nunn says bitcoin is helping to create an “internet of value” that will disrupt everything from money to record-keeping.

His view differs markedly from an institution like the Bank for International Settlements (BIS), which on Sunday released a report arguing for bitcoin’s ultimate demise. Although BIS didn’t frame the outcome exactly in those terms, the Swiss institution said the digital currency is ultimately too costly and too prone to manipulation to become a mainstay in traditional finance.

Bitcoin Prices

Bitcoin was little changed on Sunday, as prices consolidated around $6,500. With daily turnover of $3 billion, bitcoin’s trade volumes accounted for more than a third of the crypto market total.

The world’s largest cryptocurrency by market cap is down nearly 5% over the past week. That pales in comparison with some of the leading altcoins, which have fallen double digits over the same period.

Bitcoin has experienced multiple selloffs this year, with some analysts attributing the decline to the launch of bitcoin futures in December. Fundstrat Global Advosrs’ Tom Lee recently argued that bitcoin prices tend to fall into the expiration of the monthly futures contracts. This is likely caused by traders longing actual bitcoin and shorting the futures market.

Like Nunn, Lee maintains a strongly bullish outlook on bitcoin and has called for prices to rebound to $25,000 this year despite recent market dynamics.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 458 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Bitcoin Could ‘Bring Internet to a Halt,’ Says Bank for International Settlements

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The Bank for International Settlements (BIS) has delivered its most vocal criticism yet of bitcoin and related cryptocurrencies, arguing that the digital asset class may never be ready for mainstream adoption in the financial world.

BIS Weighs on Bitcoin, Cryptocurrency

In a 24-page report published Sunday as part of its annual economic review, BIS said bitcoin suffers from “a range of shortcomings” that will ultimately derail its effort to become a widely used method of payment and investment asset.

The arguments put forward by BIS are not unlike previous criticisms lobbed at the digital currency. The report’s authors argue that bitcoin consumes too much electricity and is at the center of too much manipulation to become a key artery in the global economy and financial system.

“At the time of writing, the total electricity use of bitcoin mining equalled that of mid-sized economies such as Switzerland, and other cryptocurrencies also use ample electricity,” the report said. “Put in the simplest terms, the quest for decentralised trust has quickly become an environmental disaster.”

According to the Bitcoin Energy Consumption Index courtesy of Digiconomist, bitcoin miners consume more electricity than 159 countries. For BIS, the size and growth rate of digital currency ledgers will eventually overwhelm existing technologies and bring the Internet to a halt.

BIS also concluded that, despite claims to the contrary, bitcoin’s decentralization is a fundamental flaw because it is “a poor substitute for the solid institutional backing of money.”

Based in Basel, Switzerland, BIS is an 88-year-old institution that promotes financial stability through central banking. It has been described as ‘the central bank for other central banks’ and has been instrumental in measuring the impact of the global currency markets.

Institutions Embrace Cryptocurrency

Despite BIS’ warning, institutions ranging from Goldman Sachs Group to the New York Stock Exchange are taking important steps to make cryptocurrencies accessible to their clients. Even banks choosing to remain on the sidelines of the crypto revolution are adopting blockchain technology to improve internal processes and boost business opportunity.

According to a recent study by the U.S.-based Greenwich Associates, major banks increased their blockchain budgets last year by 67% to $1.7 billion. Payments and trade finance are the most popular commercialization initiatives. The blockchain is also being exploited for revenue opportunities, settlement times and risk management.

BIS even acknowledged the power of distributed ledger technology in its criticism of cryptocurrency. The report released on Sunday conceded that distributed ledgers can improve functions related to cross-border flows and trade finance.

That said, an institution like BIS is clearly ingrained in the existing financial paradigm that has given more power to central banks. The “solid institutional backing of money” really refers to the fact that central banks can print as much money as they want while fractional banking allows institutions to lend out considerably more money than they hold in reserve. A supranational body like the BIS, which promotes this system, is unlikely to develop a favorable view of bitcoin.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 458 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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