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Visa, Paypal Say They’ll Pay $10 Million to Run ‘Facebook Coin’ – Report

Big companies like Visa and PayPal are reportedly willing to pay millions for the privilege of running a node on the Facebook cryptocurrency network.


Facebook’s foray into crypto has been met with mixed reaction. Some are hailing it as the next step in a global financial revolution, while others have expressed concerns over the company’s shady past record when it comes to security, privacy and data abuses.

Nevertheless, U.S. tech and finance giants clearly want a slice of the Facebook crypto pie. According to the Wall Street Journal, a number of financial and e-commerce companies, venture capitalists and telecommunications corporations have already pledged to back the new project.

Big Names Want In On ‘GlobalCoin’

The report added that over a dozen firms, which include Mastercard Inc, Visa Inc, PayPal Holdings Inc, Stripe Inc, Booking.com, and Uber Technologies Inc, have formed a consortium and agreed to pledge $10 million each to secure governance over the new crypto coin.

It was reported last month that the social media giant was recruiting backers and aimed to raise $1 billion for the crypto project.

Fearing Bitcoin, VISA and Mastercard Reclassify Crypto Purchases as 'Cash Advances'

The currency dubbed ‘Libra’ or ‘Global Coin’ is expected to be officially announced next week. The stablecoin will be pegged to a basket of government-issued currencies — similar to the IMF’s SDR (special drawing rights) basket of fiat currencies — to avoid the volatility of cryptocurrencies.

The report was not very complimentary of bitcoin stating,

It has been a decade since bitcoin was born, yet consumers hardly use it—or the hundreds of other cryptocurrencies—to pay for things. Facebook is betting it can change that with a crypto-based payments system built around its giant social network and its billions of users.

The usual regulatory concerns have been raised as governments get anxious about the potential for money laundering. According to the WSJ, Facebook won’t exactly control the new coin, neither will the individual members of the consortium, which is known as the Libra Association.

Citing people familiar with the situation, it added that some could serve as nodes for blockchain transaction validation.

Facebook is still the direct developer of the greatly guarded technology so its influence over the coin is likely to be as strong as it has over the data on the social media platform. Just like Google, Facebook has a highly secretive algorithm that determines what users can and cannot see in its news feed.

‘Facebook Coin’ Will Boost Bitcoin

Co-founder and partner at Morgan Creek Digital Anthony ‘Pomp’ Pompliano said that the move was especially bullish for Bitcoin adoption considering two of the backers are Visa and Mastercard.

Participating in the Libra project allows companies like PayPal, Visa, and Mastercard to exert some level of control over the new ‘cryptocurrency’ and its centralized governance. This makes the new coin unlike Bitcoin that’s an open-access cryptocurrency allowing anyone to download the software and run a node.

Therefore, ‘Facebook Coin’ is unlike to pose any real threat to the future of decentralized peer-to-peer finance. Instead, it already looks to be more like a competitor to banks or even Starbucks Rewards than P2P ‘digital gold.’

Will Facebook crypto be a threat to bitcoin? Add your thoughts below.


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Čvn 05

Facebook Sued By Dutch Media Tycoon Over Scam Bitcoin Ads

Facebook is being sued by Dutch media tycoon, John de Mol, for posting fraudulent Bitcoin ads that listed him as an investor.


 Billionaire Claims Facebook Turns a Blind Eye to Scams

On Wednesday, Reuters reported that John de Mol, the billionaire businessman behind the popular reality TV show ‘ Big Brother’ was suing Facebook for publishing false advertisements which used his name to carry out Bitcoin-related investment fraud.

De Mol’s legal representatives told an Amsterdam District Court judge that Facebook did not diligently vet the authenticity of the ads and that the company had not exerted any urgency in addressing the issue. De Mol’s lawyers also complained that Facebook had not responded to De Mol’s complaints appropriately.

facebook coin crypto

The advertisements promoted an investment scheme which encouraged participants to send money to purchase bitcoin at lucrative rates and to also invest in fake cryptocurrency-oriented startups, which were supposedly endorsed and backed by De Mol.

De Mol’s lawyers are asking that the court require Facebook to amend its listing algorithm to block any ads that feature De Mol. They stressed that the fake adverts were damaging to De Mol’s reputation.

De Mol’s lawyers also claimed that naive investors were purloined out of 1.7 million euros by the ads. They pointed out that he was not the only Dutch celebrity whose person was used as a front for fraudulent investment schemes.

Facebook Says ‘We’re Working on It’

Facebook lawyer, Jens van den Brink countered that the tech giant is unable to monitor every ad placed on its platform in realtime. Van den Brink claims that the fraudulent company and its ad content were deleted shortly after Facebook was informed of De Mol’s complaints.

According to Van den Brink, Facebook also met with the Dutch financial markets regulator (AFM) to determine new methods for preventing scammers from posting fake ads.

Many are of the opinion that Facebook’s current system of relying on users to self-report unauthentic content is insufficient and lawyer Jacqueline Schaap said,

I don’t know what reality Facebook lives in, but that doesn’t work.

Schaap suggested that Facebook should enact “pre-emptive action to block such ads” and De Mol’s lawyers want Facebook to hand over all information about those behind the fraudulent investment schemes to the local police.

The Case Continues

The judge overseeing the case asked Van den Brink pointed questions about Facebook’s ad vetting procedures and also dug into whether the company actually checks the content of the landing pages that advertisements are connected to. Van den Brink confirmed that the company does thoroughly vet content but also admitted that the software can be duped by advertisers who alter links in their ads or disguise their content.

ico scam

Facebook manager Rob Leathern told reporters that the social media giant is working to weed out fraudulent advertisements but “the people who push these kinds of ads are persistent, they are well-funded and they are constantly evolving their deceptive tactics to get around our systems.”

As the hearing wrapped up, Judge Dudok de Heel declined to set a date to rule on the case and suggested that there is the possibility of both sides reaching some sort of agreement.  

Just last month, Bitcoinist reported that Facebook has eased its restrictions on certain cryptocurrency-related ads to make way for its own ‘cryptocurrency’ dubbed GlobalCoin.

Do you think Facebook should be held accountable for the paid content is publishes? Share your thoughts in the comments below! 


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Kvě 12

‘Facebook Coin’ Will Be More Like Bitcoin Than Starbucks Rewards, Says Analyst

Speculations about the purpose of Facebook’s planned digital coin are getting wilder. Ignoring key features like independence and decentralization, one analyst predicts that ‘Facebook Coin’ would look more like Bitcoin or Ethereum than your Starbucks reward points.


Facebook Coin Might Encourage Viewing Ads

With growing interest, many are trying to envision Facebook’s planned ‘FaceCoin.’ Lacking specifics from Facebook, speculations abound about everything from the coin’s name to what it will be used for.

Under the code name “Project Libra,” tech journalists say, Facebook, Telegram, and Signal are devising their own digital token, which would allow their billions of users to exchange money across the Internet, through their payment systems.

Others argue that Facebook’s coin will be more like one of the major cryptocurrencies. In effect, one analyst, Lisa Ellis, a MoffettNathanson partner, predicts:

The Facebook (FB) coin (Facecoin, perhaps?) would actually look more like one of the large public cryptocurrencies such as Bitcoin or Ethereum and less like the internal-payment or loyalty systems that companies like Starbucks(SBUX) use.

She adds that FBCoin will likely be a more-public coin that’s governed by an independent board such as Ethereum and its foundation.

Except That It Won’t…

But regardless of the type and number of predictions put forward, one thing is sure. Facebook’s digital coin won’t be anything like Bitcoin.

It will be issued, developed and controlled by a centralized authority. Its ledger will not be immutable, and access will likely require your Facebook account.

The social media giant has not explicitly denied or acknowledged any of these speculations too. The latest statement on the subject from the company was issued to Barron’s on May 10, 2019,

[Facebook is] exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.

Visa, Mastercard Would Welcome a ‘FaceCoin’

But while Ellis didn’t mention any specifics, Ellis believes Facebook’s coin probably will end up being a tool to encourage users to watch ads.

This is something Brave has been attempting with its browser and native BAT token though some haven’t been impressed and are working on a more bitcoin-friendly version.

Meanwhile, Ellis had also earlier warned clients that cryptocurrencies could pose an existential threat to Visa, Mastercard, and Paypal. In contrast, she argues that Facebook’s coin would actually benefit these payment giants. Ellis wrote,

If Facebook(FB) launches an open digital wallet and checkout button, the company will need to collaborate with Visa and Mastercard(MA) to enable a variety of card-based funding methods in its wallet (similar to Apple Pay, PayPal(PYPL), or Google Pay).

So how will it be like Bitcoin again?

Will Facebook’s digital currency be anything like Bitcoin? Let us know in the comments below!


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Dub 26

FedEx Calls To Mandate Blockchain For International Shipping

FedEx CIO, Rob Carter, believes that mandated blockchain standards for international shipping will lead to widespread adoption within the industry. This would also enable authorities to better track goods’ provenance, and help combat the trafficking of counterfeit or illegal goods.


Digitizing The Paper Trail

Carter was speaking during a panel discussion at the Blockchain Global Revolution Conference. Moving a package internationally requires an awful lot of documentation, he explained, some of which can be as important as the package itself.

While this was traditionally paper-based, even digitized documentation transfers occur via 60-year-old technology, with no real-time data. The industry-wide adoption of a standardized blockchain could provide a global solution, and a level playing field, away from proprietary systems. Said Carter:

We’re not an organization that pushes for more regulatory control, but there are times regulatory mandates and pushes can be incredibly helpful.

Working Together To Define Standards

FedEx has joined forces with competitors, UPS and DHL Express (all members of the Blockchain in Transport Alliance), to hammer out standards for such a system. Currently, though a company like UPS can manage single supply chain transactions, these break down when dealing with real-world scenarios with multiple shippers.

A company may use DHL to ship components to Germany. The assembled part may then ship to Latin America via UPS before the fitted part travels to Japan via FedEx. A standardized blockchain would enable all of the relevant information to be shared between all parties and different national authorities.

Stemming Flow Of Counterfeit, Dangerous, and Illegal Goods

Just this month, the White House highlighted the need to combat trade in counterfeit goods, estimated to have a value of half a trillion dollars annually. Using a permissioned blockchain would create a permanent ledger, and the additional use of IoT sensors and RFID tags could give real-time feedback on transit conditions.

Blockchain Technology is Shaping the Future of Shipping

All authorized entities, from shippers to government agencies, to customers, could track packages, potentially all the way back up the supply chain.

FedEx Logistics CEO, Richard Smith, explained that the government’s concern with this was that blockchain had not been widely adopted. His response to which was:

You’re the government. You can mandate that it’s widely adopted.

Gov’t To Mandate Industry-wide Blockchain Adoption?

FedEx believes that this is the quickest way to modernize and streamline the industry, meeting customers’ increasingly complex cross-border shipping, transportation, and brokerage needs. Additionally, it would provide a way to help customs and border agents to achieve their goals, regarding illicit goods flow.

Shipping has long been one of the industries with high hopes for the introduction of blockchain based solutions. A standardized and mandated system could see one of the first cases of mainstream adoption.

Will FedEx be one of the first shipping giants to successfully use blockchain tech? Share your thoughts!


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Dub 20

Binance CFO Talks About His ‘Exciting’ Journey in Exclusive Interview

It was the last hour of the final day at Paris Blockchain Week Summit. The charismatic Binance CFO Wei Zhao had been speaking back to back. Yet, despite the time and the fact that he must have repeated himself over and over for two solid days, he seemed undeterred. Wearing jeans and a Binance hoodie, he bounded up to meet me, vigorously shaking my hand, clearly enjoying being the man of the moment.


If this were a celebrity party, Binance would be the VIP guest. Changpeng Zhao (CZ)’s creation seems unstoppable. Every project wants to be on Binance, from regular token listings to holding IEOs on the Binance LaunchPad. The Binance Chain has just launched, its native BNB token is climbing in price, and the company has the power to influence the entire community and delist tokens at will.

Binance Won’t Be Leaving Malta Any Time Soon

Minister for Digital Affairs Cedric O later said in a press conference that one of their goals was attracting Binance to France. Yet Zhao confessed to me that he had no idea the French had pushed forward new regulation until now.

With a rather high taxation rate for crypto companies at 30 percent, regulations around ICOs (that no one’s doing anymore) and a lot less flexibility than Malta, it looks unlikely that Binance will move to France anytime soon. Although I wasn’t privy to any backroom chats.

binance cfo wei zhao

My interview was with Wei Zhao, the man partially responsible for Binance’s epic growth. “I help companies to scale and to grow,” he tells me. Binance now has over 400 people in 30 countries. That’s “a decent sized organization.”

One thing that I have helped to launch is our fiat to crypto offering. In January, we launched our fiat to crypto, pound to BTC. We’re also doing Singapore. Last year, we launched in Uganda… My approach has been basically to build up our presence in the regulated world and build up more fiat.

Bridging the Traditional Financial World with Crypto

With a background of working in traditional finance, and grooming companies to go public, it’s unsurprising that another major focus of Zhao is institutional investors.

“I worked in Hong Kong, so I’ve been CFO for about four different companies, two of which went public. So, I am quite adept in dealing with bankers, and working with bankers, I am a banker myself. I helped to launch our OTC trading services, Binance off-exchange services. I help bring people from traditional bond traders and that type of trader to cryptocurrency.”

Indeed, the surge in Binance’s OTC trading drove the company’s near $80 million first-quarter profits.

What It’s Like Working at Binance

I ask why he made the leap from traditional finance to crypto. He says he would not have done it for any other company than Binance.

I think we are really different from other companies. Most are just exchanges, but we really fiercely want to make an impact in the world… The journey has been awesome so far and I’m in it for the long haul.

One of the best things about his job? Traveling to different places. “I flew around the world four or five times already,” he laughs.

It does speak to the borderless nature of cryptocurrencies. Yes, it’s a digital business but at the end of the day, it’s still a human business, it’s a very human business. The reason this industry is growing so much is that people in this industry travel so much. Like 10 times more than in any other industry.

There’s nothing like human interaction, face to face human talking about things, that’s how you can really impact change.

Does the Recent Leap in Bitcoin Mean the Bear Market Is Over?

It’s not a decisive “yes” when I ask if the bear market is over. Zhao pauses and leans back in his chair. There’s a short silence before he forms his answer, leading me to believe the opposite may be true. But with the most profitable exchange in crypto, bear market or no, nothing’s stopping Binance. He says:

I think there’s generally a lot more interest across the board despite adverse regulation and other adversities. You see general interest in bitcoin from traditional industries, and the rest of the world is showing interest in projects and I think all of it will contribute to the continued growth of the market. The fact that people are thinking “how is this going to impact my business?” Facebook JPMorgan… it lends credibility to the space.

I ask if companies like JPMorgan and Facebook lending “credibility” is rather ironic, considering how Bitcoin was born. He replies:

You need a push which is driven by guys like Facebook and JPMorgan, that gets people thinking about how that’s going to impact institutions and the market. It lends credibility, mindshare, and shows that our actions are getting noticed, that’s what it takes.

What It’s Like Working with CZ

So, what’s it like working with one of crypto’s biggest personalities? “Awesome, it really is awesome!” he enthuses, “he’s extremely transparent, diligent and extremely honest, he’s also extremely intelligent, and very patient.”

changpeng zhao cz binance

I ask if he was in complete agreement about the recent delisting of Bitcoin SV, to which he nods his head. Presumably, he’s been fielding questions on the subject all day long and his answer is extremely diplomatic.

“We have a very rigorous delisting process, and we also have a regular quarterly review. This quarter a lot of the comments we’ve written out our rationality… I don’t have any other comments on that.”

Finally then, who does Zhao believe that Satoshi Nakamoto is? Clearly, not Craig Wright.

“I think its a community,” he replies. “It’s like ‘I am Bitcoin’, you know that movie? ‘I am bah, blah blah’? It’s like that with Bitcoin. It’s a community. And we’re surviving… I believe that every day that you survive extends your survival… There is a reason why he or she wants to remain anonymous, because it’s not important, it’s a community.”

What do you think of Zhao’s comments? Let us know your thoughts below!


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Dub 20

Chinese Company Lost $23 Million Allegedly Mining Cryptocurrency in Secret

A subsidiary of Chinese firm Huatie has been sold off at 10 percent of its initial value following losses from suspected secret cryptocurrency mining activities amounting to about $23 million.


90 Percent Value Plunged Probably Due to 2018 Bear Market

According to Chinese crypto media outlet 8BTC, Huatie HengAn, a subsidiary of Huatie has been sold for $2 million. Reports indicate that the company’s value plunged by about 90 percent from an initial valuation of $25 million, all in the space of one year.

Huatie HengAn originally a construction company reportedly purchased 36,500 units of hardware listed as “servers” from Canaan and Ebang in 2018.

Given that both companies don’t sell servers but instead sell crypto mining hardware, the suspicion is that Huatie HengAn pivoted from construction to cryptocurrency mining.

Back in December 2018, Huatie’s end-of-year financial report showed losses of about $14 million for its subsidiary firm. By February 2018, the total net loss had risen to $23 million.

With the total loss just $2 million off from its initial $25 million investment into the business, it appears the parent company decided to count its losses and sell the business.

If Huatie HengAn was indeed engaging in cryptocurrency mining, it would be the latest in a growing list of businesses affected by the 2018 bear market.

During the year-long bear period, the entire cryptocurrency market fell by an average of more than 80 percent across the board.

2018 – A Dreadful Year for Mining Companies

For the first half of 2018, it appeared as though mining companies were immune to the hemorrhaging prices in the cryptocurrency market. However, by Q3 2018 reports of difficult financial situations began to emerge.

Cloud mining services like Hashflare were the first to shut down citing lack of profitability. Then reports began to emerge of massive losses for mining giant Bitmain – a situation further worsened by a bet on Bitcoin Cash that ultimately backfired.

The fallout from the suspected losses has seen the company downsize its workforce, firing entire departments. Bitmain has also appointed a new CEO.

Ebang, Bitmain, and Canaan abandoned plans for massive initial public offerings (IPO). GMO also incurred losses of $12 million forcing the company to shut down its mining hardware enterprise.

Even companies like Nvidia that sold hardware for miners weren’t left out as the company is reportedly trying to offload unsold inventory as demand shrunk in 2018.

Do you think Huatie HengAn was secretly mining cryptocurrencies under the guise of could computing? Let us know your thoughts in the comments below.


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Dub 13

Uber IPO: Cryptocurrency Will Be a ‘Huge Beneficiary’

Uber Technologies Inc. expects a valuation of about USD 100 billion when listed on the New York Stock Exchange. Large IPOs such as Uber’s and others could bring spectacular benefits to the crypto industry. At the same time, business solutions allowing Uber users to pay with Bitcoin are now moving to center stage.


Uber IPO: Bigger Than Bitcoin’s Market Cap

On April 11, 2019, Uber filed with the U.S. Securities and Exchange Commission (SEC) to offer shares of its common stock. In its recently released prospectus, Uber does not mention the magnitude of the IPO, which could be one of the biggest ever.

However, according to The Financial Times,

The company is aiming to raise $10bn from its IPO and recently told some of its investors that it could be valued at $90bn to $100bn, according to people familiar with the matter. The company was last valued at $76bn in a private fundraising in August.

Thus, the estimated valuation would surpass today’s Bitcoin market capitalization of about $89 billion.

The transportation company bases its projections on its leading technology, expertise, and massive network, which comprises millions of drivers, users, shippers, and other participants around the globe.

Moreover, Uber details in its prospectus financial data as follows:

  • Revenue derived from our Ridesharing products grew from $3.5 billion in 2016 to $9.2 billion in 2018.
  • Gross Bookings derived from our Ridesharing products grew from $18.8 billion in 2016 to $41.5 billion in 2018.
  • Consumers traveled approximately 26 billion miles on our platform in 2018.

Uber has become omnipresent. Its global ridesharing footprint covers 63 countries, encompassing a population of over 4 billion people, as shown in the graph below:

Digital Currency Group CEO, Barry Silbert adds that billions of dollars in private company stock will be unleashed from IPOs this year.

“The crypto asset class is going to be a huge beneficiary,” he says

You Can Already Use Bitcoin

Uber’s direct acceptance of payments in Bitcoin and other cryptocurrencies may still be a long way off, however.

In the meantime though, some Uber drivers around the world are unofficially accepting BTC instead of their local fiat currency.

Some users in Argentina, for example, have expressed interest in paying for Uber with bitcoin while some drivers wouldn’t mind receiving some bits instead of the depreciating peso.

For instance, an Uber driver, under the Reddit username bjandrus, wrote that he was already accepting bitcoin off the books for rides. However, he complains, the process is problematic because the Uber app does not support BTC payments.

It remains to be seen which ride-sharing company will officially begin accepting bitcoin first.

However, paying for Uber in bitcoin indirectly is already possible. For example, there’s the gift card option from Bitrefill and others, including the Coinbase e-gift card supported in select EU countries and Australia.

There are also third-party services as well as cryptocurrency debit cards that allow you to pay for anything, including Uber, Lyft etc. using bitcoin.

https://twitter.com/VenditExchange/status/1088929593577357313

How do you think IPOs such the one expected from Uber could benefit the crypto industry? Let us know what you think in the comments below.


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Bře 26

Bitmain Says It Won’t Give Up on World’s Biggest Cryptocurrency IPO

Bitcoin mining giant Bitmain has officially announced its new CEO and says it will restart the IPO listing process sometime in the future. The company endured a difficult 2018 with administrative upheavals, staff layoffs, and significant losses.


Bitcoin Mining Giant Gets New CEO

In the latter part of 2018, Bitmain laid off a couple of departments amid reports of financial difficulties. In a blog post published on Tuesday (March 26, 2019), the company explained the decisions taken as part of its efforts to align its business model.

An excerpt from the statement reads:

It was a difficult but necessary decision as we continue to build a long-term, sustainable and scalable business. We did our best to compensate our employees above the legal requirement.

Bitmain also made some changes to its leadership structure with Haichao Wang, the former Engineering chief appointed as the new CEO. Co-founders Jihan Wu and Ketuan Zhan remain directors of the company and continue to have a say in “big decisions.”

Bitmain Will Restart IPO Listing Process

As reported by Bitcoinist on Monday, the Bitmain IPO application at the Hong Kong Stock Exchange (HKEX) expired after six months. According to the company, regulators and other mainstream stakeholders aren’t yet sold to the immense potential of the emerging cryptocurrency industry.

In the meantime, Bitmain says it will restart the application at some time in the future. Despite the failure of its first IPO application, the company said the process did deliver some positives for the company especially in the area of financial transparency.

Concerning transparency, Bitmain is yet to publish its financials for the second half of 2018. Speculation is rife with reports of huge losses for Q3 2018 of about $740 million.

Any attempt to refile another IPO application will see the company being forced to publish its financial report for Q3 and maybe even Q4 2018 depending on the reporting period stipulated by the stock exchange operator.

Bitmain Will Focus on Innovation and AI

Bitmain also revealed that its focus for 2019 will be on streamlining its business process to focus on innovation in both the cryptocurrency and artificial intelligence (AI) market.

Back in February 2019, Bitcoinist reported on the company’s new 7-nm chip touted to deliver more efficient Bitcoin mining. On paper, the new chip will offer about a 28.6 percent improvement in power efficiency, compared to previous iterations of the company’s 7-nm chip.

For innovation in the AI scene, the blog post also mentions agreements already inked with important stakeholders across China. Bitmain says it plans to lead the way in terms of cutting-edge innovation for neural processors.

What do you make of Bitmain’s stated goals for 2019 after the difficulties experienced in 2018? Share your thoughts with us in the comments below.


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Bře 23

Vietnam Reportedly Launching First Fully-Authorized Cryptocurrency Exchange

Vietnam’s largest distribution company, Linh Thanh Group, is apparently partnering with Switzerland-based blockchain company KRONN Ventures to establish the first fully-authorized cryptocurrency exchange in the Southeast Asian country. 


The information comes from a press release, which states that the two companies have signed a memorandum of understanding and have received a license to establish a cryptocurrency exchange in Vietnam.

This news comes after the Zug-based KRONN Ventures AG brought together financial committees from Vietnam, Philippines, Cambodia, Bangladesh, and Sri Lanka to form a consortium in late last year. The consortium was formed to construct an international wiring system powered by blockchain technology.

The aforementioned press release claims that the Linh Thanh Group and KRONN Ventures are building “a world-class cryptocurrency exchange” — which may have merit, given Zug’s standing as a leading cryptocurrency and blockchain hotspot in the world. KRONN has also worked with London’s King’s College on an artificial intelligence research facility.

“The industry expectation is that by combining Linh Thanh Group’s massive distribution network, which is the largest in Vietnam, with the world-class technology of KRONN Ventures, the impact will be widely felt not only in Vietnam but also in other surrounding Asian countries,” states the press release — though we’re not confident the press release is capable of speaking for the entire blockchain and cryptocurrency industry.

The move from Linh Thanh Group and KRONN Ventures is one likely driven by the desire of developing countries in Asia to not fall behind once the cryptocurrency market finishes correcting and commences on another positive trajectory — which is more likely to happen than not, given the behind-the-scenes development taking place on an industry level while coin prices fall and worthless tokens find themselves removed from the market. It is also a move that hopes to reverse the worrying trend in the region of regulators casting unfavorable eyes on the industry.

What do you think about Linh Thanh Group and KRONN Ventures teaming up to launch Vietnam’s first authorized cryptocurrency exchange? Let us know your thoughts in the comments below! 


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Bře 17

Gatecoin Ordered to Cease All Operations, Enters Liquidation

Gatecoin, a cryptocurrency exchange based in Hong Kong, has announced that it is shutting down and entering liquidation following failed attempts at recovering lost funds stemming from a dispute with a past payment services provider. 


The news comes via an official statement on Gatecoin’s website.

As detailed by the company, Gatecoin ran into trouble with its banking partners in September 2018, which forced the lesser-known exchange to commence a working relationship with a payment service provider (PSP). Said provider is apparently fully-compliant with French regulations. However, Gatecoin blames the PSP for failing “to process most of the transfers in a timely manner.” States the exchange:

[This] in turn almost paralyzed our operation for many months and caused substantial loss on our side.

Things apparently got worse when Gatecoin decided to replace the problematic PSP with “more reliable alternatives.” The prior PSP allegedly retained a significant portion of the exchange’s funds. Legal action apparently had little effect on recovering the funds — which seems a little suspect. Explains the statement:

After months spent trying to recover those funds, we commenced legal action against that PSP but were advised that it is unlikely that we would be able to recover the funds from them in full.

This financial difficulty, undoubtedly paired with the continued bear market, has forced Gatecoin to close up shop. The company was ordered to wind up by a court on March 13, 2019, and a provisional liquidator has been put in control. All operations must be ceased immediately. “Please rest assured that we will assist the liquidation process in order to expedite the realization and redistribution of our assets to the creditors,” the statement claims.

Gatecoin now joins the growing list of failed exchanges and bear market fatalities as the blockchain and cryptocurrency industry continues to flush out the waste and separate the wheat from the chaff.

What do you think of Gatecoin’s closure? Let us know your thoughts in the comments below!


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