Dub 27

Ethereum Classic Takes Stance Against ‘Manipulative Crowdsale Tactics’

· April 27, 2017 · 8:30 am

The Ethereum Classic team addressed the current ICO hype, warning against “manipulative crowdsale tactics,” while promising not to vouch for coin offerings “in the same capacity” as the Ethereum Foundation. 


Ethereum Classic on ‘Irrational Appcoin Exuberance’

The Ethereum Classic development team has shared its opinion on what Nick Tomaino’s called, the “Irrational Appcoin Exuberance.” This exuberance is currently seen in Ethereum and may soon come to Ethereum Classic as more capital flows into the network.

Citing concerns regarding the way Initial Coin Offerings (ICOs) are structured in Ethereum and even within the Ethereum Classic network, the post seeks to caution investors against potentially risky investments in poorly planned or outright scam ICOs that can result in monumental losses for naive investors.

The post also showcases some examples where the Ethereum Classic community and dev team has performed its due diligence and warned against ill-conceived crowdfunding campaign on the ETC network, noting the different attitudes that the two competing blockchains, ETC and ETH, employ towards the Initial Coin Offering frenzy. The post reads:

As one might expect, ETCDEV will not vouch for coin offerings in the same capacity as the Ethereum Foundation members who signed on as curators for the launch of The DAO crowdsale.

Appcoins Coming to ETC

The Ethereum Classic team sees yesterday’s launch of the Grayscale Ethereum Classic (ETC) Investment Trust, whose shares are the first securities solely invested in and deriving value from the price of ETC , as a possible incentive for developers to run their ICOs on Ethereum Classic’s “immutable chain.”

“If stakeholders profit in a short span of time as a consequence of the launch of the Ethereum Investment Trust, some developers may choose to run their ICOs on the immutable chain, inviting the backing of the ETC nouveau riche,” the post explains.

Ethereum Classic

Developers will be able to kickstart their Initial Coin Offerings through the Emerald Wallet, an official desktop wallet, that is currently being developed by the ETCDEV team.

It will feature an integrated set of tools that can be used to launch ICOs and build custom applications on top of Ethereum Classic blockchain, allowing the Ethereum Classic team to distance itself from said crowdfunding campaigns.

ICO organizers may opt to use Emerald Wallet tools to deliver tokens to backers, though crowdfunding will not be the stated purpose of the software. Taking advantage of these tools for the creation of ETC decentralized apps, startups can issue offerings without ETCDEV having to involve themselves in ICOs.

‘Curb Your ICO Enthusiasm’

Despite this, the Ethereum Classic team does not share the general enthusiasm that is felt towards ICOs and appcoins, citing Barry Silbert, founder of the Digital Currency Group.

Bitcoinist_Digital Currency Group Barry Silbert

During a presentation at the Blockchain Startups Singapore meetup in November 2016, Silbert noted that the lack of legal structure found in those could “attract negative attention from the Securities and Exchange Commission.”

Instead, the team considers “store of value through monetary strategy, internet of things functionality, and smart contracts applications” as the investment merits of ETC.

In the Ethereum space, some developers are voicing concerns regarding recent crowdsales. There exists at present no established framework for investors to assess Ethereum startups’ ICOs, along the lines of a PhD student’s being required to defend their thesis.

The nature of ICOs has made it the perfect pitfall for naive investors who may be enthusiastic about blockchain technology but cannot see through “manipulative crowd sale tactics” often employed by these projects, which often rely on Ethereum and Ethereum Classic blockchains.

The dev team references two ICO hoaxes that took place in the Ethereum Classic blockchain, Unicorn and BorgDAO, the latter of which collecting funds from investors.

Our contention here is that 1) irrational app-coin exuberance and 2) potential SEC intervention should be kept in mind by ETC investors when considering participation in a risky initial coin offering. We do not support disingenuous and manipulative crowdsale tactics, nor do we believe that we have seen the last of hoaxes like the BorgDAO.

Investors should be very cautious when investing in Initial Coin Offerings. Be it on the Ethereum, Ethereum Classic blockchain or any other ‘blockchain.’ ICOs can result in huge losses and some are outright scams.

Bitcoinist advises everyone to perform due diligence and to vet projects and teams carefully before committing your money.

Will we start to see more ICO’s on the Ethereum Classic blockchain? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Led 21

Barry Silbert’s Bitcoin Investment Fund Files $500m Share Offering

· January 21, 2017 · 7:00 am

Barry Silbert’s Bitcoin Investment Trust has filed form S-1 with the US Securities And Exchange Commission (SEC) for up to $500 million USD worth of shares.


Private Placement Shares End

The documentation, submitted Friday, will take the Trust a step closer to listing on the New York Stock Exchange should the SEC approve it.

Bitcoinist_Digital Currency Group Barry Silbert

Grayscale Investments, LLC announced today that it has filed a registration statement on Form S-1 relating to the proposed registration of the Bitcoin Investment Trust’s shares (the “registered Shares”) with the Securities and Exchange Commission,” an accompanying press release confirmed.

The investment objective of the Bitcoin Investment Trust is for the registered Shares to reflect the performance of the value of a bitcoin, before liabilities and expenses of the Trust, as represented by the TradeBlock XBX Index.

The move also means that the Trust’s holding company, Grayscale Investments, has ceased offering shares in the Trust through its private placement.

“As of the close of business on January 19, 2017, Grayscale Investments, LLC has ceased its ongoing private placement and will no longer issue shares of the Bitcoin Investment Trust through its previous 506(c) private placement,” an additional announcement stated Friday.

Shares of the Bitcoin Investment Trust will continue to be quoted in the secondary market on OTCQX®, the top marketplace operated by OTC Markets, under the symbol: GBTC.

Grayscale has also announced a new Ethereum Classic Trust, with more details to be announced in the near future.

Analysts: SEC ‘Worried About FUD’

The SEC is also currently considering the Winklevoss twins’ Bitcoin ETF, which has faced a long process to ratification and has still not received the regulatory blessing.

Bitcoinist_Bitcoin Devleopment Funding

Earlier this month, analysts suggested the SEC was unlikely to grant the Fund approval due to various factors causing unease – including, somewhat unusually, “fear, uncertainty, and doubt.”

Nonetheless, the instrument has already proven its viability, for example in a surge last January as uncertainty gripped global stock markets.

A decision from the SEC is expected by March, and if successful, the same analysts note, the Bitcoin ETF could see $300 million flow into the Bitcoin ecosystem from new Wall Street investors.

The Winklevoss twins have been vocal in their support for Bitcoin as an asset, stating is “better than gold” and calling Bitcoin “the greatest social network of all.”

The BTI meanwhile, launched back in 2013, began trading on the OTCQX in May 2015. 

What do you think about the chances for the Bitcoin Investment Trust compared to the Bitcoin ETF? Let us know in the comments below!


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Kvě 01

Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire

Source: bitcoin

Bitcoin Industry Report

Want to catch up on digital currency news? This week, an accidental transaction landed a bitcoin miner a hefty sum of coins, and Barry Silbert’s Digital Currency Group got even bigger. Take a look and see what you’ve been missing.

Also read: Industry Report: EU Gets Serious, Blockchain Does Healthcare

BITCOIN ERROR = MASSIVE FUNDS!

Imagine that you’re expecting a minor payment from a friend or colleague. Nothing big, maybe a few dollars or so. Just a little something to help keep you afloat… They decide to pay you in bitcoin, so you sit, staring at your account, expecting the amount to come through at any moment, and when it arrives, you begin to sweat. Your heart beats faster, and the adrenaline is rising in your system. For some reason, this person didn’t send you $1; they sent you $100,000.

This is the scenario that occurred just a few days ago when someone (presently unnamed) sent a transaction for five cents worth of bitcoin and wound up paying an additional $137,000 in fees in what is being labeled a massive, unintentional error.

The occurrence likely happened due to the swapping of fee fields between transactions, possibly through a script moving money around. The recipient of the fee is allegedly a Chinese MLM operation. At this time, no plans have been made to return the funds. Furthermore, it likely won’t be easy to return them even if the company wants to. The company may have to deduct the amount as a business expense after booking the funds, and the recipient would have to provide excessive evidence that they are who they say they are (and be subject to further scrutiny from there). Either way, a bank-breaking payday is in store for some lucky party.

DIGITAL CURRENCY GROUP

A lot has been happening with Digital Currency Group. After obtaining Coindesk, one of digital currency’s most prominent news platforms, the company has announced that Larry Summers, former Treasury secretary and former president of Harvard University, is joining DCG as the company’s senior advisor.

Summers has been a long-time Bitcoin fanatic, and voiced his support for the currency just last year at the Museum of American Finance, stating:

“We have seen so little innovation cumulatively directed at taking the frictional costs out of the system. The notion that there’s going to be a lot of innovation and experimentation around how those frictional costs can be taken out feels like a very important idea.”

Adding to the good news is banking conglomerate Western Union, which now serves as one of the company’s top investors along with other high-ranking financial firms including OMERS Ventures, Kingsbridge Wealth Management, and Wood Investment Partners.

Expressing his enthusiasm, CEO Barry Silbert explained:

“We are honored to have the support of so many fantastic investors and advisers and the trust of our portfolio companies and subsidiaries who are looking to us for not just capital, but an opportunity to leverage our insights and engage with our broad network. The DCG family continues to grow, and we are excited to continue supporting and building meaningful businesses in the digital currency and distributed ledger space.”

Have any stories you’d like to see recapped in our weekly industry series? Tell us below!


 

Images courtesy of bitmate.net & digitalcurrencycouncil.com

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Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire

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Dub 30

Tierion Raises $1 Million for Blockchain Verification Platform

Source: bitcoin

Tierion Raises $1 Million for Blockchain Verification Platform

The blockchain startup Tierion has raised $1 million in a seed funding round to continue developing its platform which verifies the integrity of a file, data, or business protocol through distributed ledger technology. The investment round was led by Blockchain Capital, Fenbushi Capital, and the Digital Currency Group. Tierion says its software gives developers the tools for building applications tethered to the blockchain.

Also read: Industry Report: Kraken, Others Receive Large Investments

Tierion’s Platform Raises $ 1 Million from Blockchain Capital, DCG, and Fenbushi Capital

Tierion had made headlines earlier this year when it partnered with Philips Blockchain Lab to innovate medical data with digital ledger consensus. The company headquartered in Hartford, Connecticut was founded in 2015 by Wayne Vaughan and Jason Bukowski. With the firms Chainpoint software, users can “anchor” millions of records housed within a single transaction on the blockchain. Tierion says, “Blockchain receipts can be shared with other systems and used to independently verify the integrity and authenticity of any file, data, or business process.” All of its processes verify without trusting a third party or relying on centralized arbitration. Wayne Vaughan, Tierion’s CEO and Co-Founder stated in the announcement:

“We’re thrilled with the creative uses we’ve seen for Tierion. At one end of the spectrum, one of the world’s largest healthcare companies is using Tierion to record the maintenance and usage history of industrial medical equipment. At the other end, we’re seeing a legal cannabis dispensary use Tierion to create immutable records of their inventory and transactions.”

The startup says there is a broad range of use cases when it comes to distributed ledger technology, and the company’s software is ready to encompass many of them. The very foundation of Tierion is a scalable engine for cryptographically ensured data so that businesses around the world can anchor with the blockchain. Vitalik Buterin, Ethereum founder and Partner at Fenbushi Capital, says Tierion makes immutable records and proof-of-existence “easy” and believes the company displays an “interesting approach” to anchoring. Another Investor of the project Bart Stephens, Managing Partner of Blockchain Capital explains Tierion’s advantages saying:

“Blockchain technology has tremendous potential beyond payments. Tierion’s platform gives any enterprise easy access to the blockchain to verify any document or business process. This is a powerful tool for companies operating in a regulated environment like financial services, healthcare, insurance, or government services.”

The software Tierion and partners have assembled Chainpoint will allow developers to get hands on with blockchain technology and notarize certain data. The hope is to build an automated and standardized process for enterprise applications meeting both financial solutions and other use cases. Barry Silbert, CEO of Digital Currency Group also believes in the Tierion team and says in the announcement, “We are excited to see the Tierion team leveraging the core innovation of blockchain technology to secure data and ensure it cannot be tampered with. Their open protocol will enable those new to this technology to easily create data management tools to track the history of one of the most valuable assets of any organization – information.”

What do you think about Tierion’s Chainpoint software? Let us know in the comments below.


Images courtesy of Tierion’s Website, and Shutterstock

 

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Tierion Raises Million for Blockchain Verification Platform

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