Altcoin

SEC Tells Telegram Its Crypto Is Worth Less Than Donuts

single-image

bitbond bitcoin lending

On Jan. 27., the Securities and Exchange Commission (SEC) fortified its case against Telegram, saying its Gram token is worth less than donuts. 

The SEC’s counter

In the latest in their battle with Telegram and the Telegram Open Network (TON), the SEC argued in a memo to the Southern District Court of New York:

“Telegram offered and sold Grams as securities when it promised to deliver them in exchange for funds pursuant to the Purchase Agreements. That reality will not have changed if the Court permits Telegram to deliver Grams to the Initial Purchasers as part of a broad public distribution, which is in violation of Section 5, and which the Court should enjoin”.

In the memo, the SEC included a few barbs against the instant messenger service. It called out Telegram for doing “a two-step around the registration provisions” and performing “sleight of hand” by fabricating the difference between a purchaser’s investment in Grams and their delivery of the Grams, which would allow them to withhold info normally in regulatory statements. Pavel Durov’s creation, the document contends, gave a “strawman” argument about “existence” since “Grams will never be tangible.” The SEC put the frosting on when it wrote: 

“Telegram’s attempt to avoid this economic truth by labelling Grams ‘commodities’ also fails. Grams are not commodities. Unlike gold, comic books, and Krispy Kreme donuts —  commodities Telegram compares to Grams — Grams have no intrinsic value.”

Background

Cointelegraph reported on the start of Telegram’s legal woes last year, when the SEC filed an emergency action to freeze the company’s sale of Gram tokens.

Per the allegations, Telegram would have sold Grams only to accredited investors in the initial offering. But holders could then have resold them — a violation of Rule 506(c) according to the SEC: 

“Once Telegram delivers the Grams to the Initial Purchasers, they will be able to resell billions of Grams on the open market to the investing public. Telegram and/or its affiliates will facilitate these sales on digital-asset trading platforms. Once these resales occur, Telegram will have completed its unregistered offering with billions of Grams trading on multiple platforms to a dispersed group of investors.”





Source

Leave a Reply

avatar
  Subscribe  
Notify of

You may also like

Bitcoin

Iranian General Calls for use of Crypto to Evade Sanctions

single-image

bitbond bitcoin lending

This week an Iranian general called for a unique way to bypass the sanctions on his country enforced by the United States. 

Saeed Muhammad, commander of the Islamic Revolutionary Guard Corps, called for Iran to use cryptocurrencies to evade the economic sanctions. According to the Telegram channel of Coinit.ir, a crypto news organization based in Iran, the general addressed a crowd on Feb. 26 (translated from Farsi):  

“We are demanding the creation of a more sophisticated mechanism to bypass sanctions. To circumvent sanctions, we must develop solutions such as the exchange of products and the use of cryptocurrencies with our partnerships [in other countries].”

Sanctions’ economic impact on Iranian citizens

The people of Iran have seen the value of their currency drop significantly in the wake of the sanctions imposed by…


View More Article
Bitcoin

Bitcoin Erases February’s Gains, BTC Price Sinks Below $8,700

single-image

bitbond bitcoin lending

The sharp correction that has rocked the crypto market since Feb. 23 continued through Feb. 27 as Bitcoin (BTC) price dropped nearly 8% to a daily low at $8,531.

Markets pricing in Coronavirus impact

At the opening bell, equities markets recovered some of the losses of the previous two days but at the time of writing Dow Jones futures, S&P 500 futures and Nasdaq futures all dropped 1.32%, 1.33% and 1.31%, respectively, with investors increasingly concerned about the economic impact of the Coronavirus, which is now present on every continent except Antarctica.

Tech giants Microsoft and Apple also announced that they anticipate missing key sales targets and it is likely that lent another blow to futures markets.

According to reporting from The Fuse, oil refineries in China are currently processing 25% less oil than usual, and the International Energy Agency…

View More Article
Ethereum

Ethereum Community Comes out Against Controversial ProgPoW

single-image

bitbond bitcoin lending

Opposition continues to grow against implementation of the controversial Programmatic Proof-of-Work (ProgPoW) proposal in the Ethereum community.

ProgPoW is an ASIC-resistant PoW algorithm meant to replace ETHhash, the current hashing algorithm for the platform. First mooted two years ago, it suddenly reemerged as a concrete plan set for the middle of this year following a call of core developers on February 21.

Leading stakeholders filed a petition on Github on Feb. 26 to register their disapproval with the decision.

Authored by ETHBoston Organizer Justin Leroux, the petition claims the change lacks community support:

“Because Ethereum is a global platform with a large and diverse group of stakeholders, it is critical that major changes to the protocol have a clear purpose and broad support. EIP-1057 clearly lacks that support, yet activation is still being considered.”

Uniswap,…


View More Article
Bitcoin

Half of Cash App’s Revenue Now Comes From Bitcoin

single-image

bitbond bitcoin lending

Square’s Cash App derived half of its fourth-quarter revenue from Bitcoin (BTC) services.

According to a shareholder letter published on Feb. 28, Bitcoin revenue amounted to $178 million during the fourth quarter of 2019, while combined non-Bitcoin revenue totaled $183 million.

In total Bitcoin accounted for more than half a billion dollars of revenue across 2019, equating to around $8 million in profits. That’s up from $1.7 million the previous year.

The figures show that Bitcoin is increasing in popularity with smaller retail investors on the peer-to-peer payments app, with the last quarter accounting for almost 40% of Square’s Bitcoin revenue for the year.

Cash App  — from Twitter CEO Jack Dorsey’s firm Square — is currently the second most-used finance app on Google Play, and the 23rd-most used app on the platform overall. It also…


View More Article
Bitcoin

‘Crypto Mom’ Accuses SEC of ‘Shifting Standards’ Following Bitcoin ETF Rejection

single-image

bitbond bitcoin lending

The US Securities and Exchange Commision has rejected New York based firm Wilshire Phoenix’s Bitcoin Exchange Traded Fund (ETF) application, citing ongoing concerns over market manipulation and a lack of surveillance-sharing agreements.

Commissioner Hester ‘Crypto Mom’ Peirce has publicly disagreed with the rejection.

NYSE Arca had submitted a proposed rule change to allow the listing and trade of Wilshire Phoenix’s United States Bitcoin and Treasury Investment Trust. The proposal included both US Treasury Bonds and Bitcoin and hoped to address the SEC’s concerns over market manipulation by automatically rebalancing into bonds during periods of BTC price volatility.

Explaining the reasons behind its Wednesday ruling the SEC said the company had been unable to provide enough proof that it can protect itself from “fraudulent and manipulative acts and practices” in the Bitcoin market in order “to protect investors and the public interest.”

The SEC…


View More Article
Ethereum

Coinbase Wallet Now Allows to Send Crypto Through Usernames

single-image

bitbond bitcoin lending

Coinbase updated its wallet with a function that lets its users send cryptocurrency through usernames, instead of the usual lengthy addresses.

According to a Feb. 25 announcement, Coinbase Wallet now allows its users to send cryptocurrency to dedicated usernames or ones created on the Ethereum Name Service (ENS). Coinbase’s proprietary usernames look like @username while ENS names resemble URLs like coinbase.eth.

Source: Coinbase blog

No more sending to a wrong address

In its announcement, Coinabse claims that its users often complain about “how cumbersome it is to deal with long and nonsensical crypto addresses.” Many users are often afraid of having copied and pasted addresses incorrectly and losing the funds. Those are the problems that username implementation attempts to solve, according to the company:

“Human-readable addresses help fix these problems. There are now services that let you…

View More Article
Blockchain

Binance’s CZ Overtakes Bitmain Co-Founder in New Hurun Rich List

single-image

bitbond bitcoin lending

While China now has more billionaires than the United States and India combined, Binance CEO might have more money than any crypto person, a new report says.

Binance CEO Changpeng Zhao has overtaken a co-founder of cryptocurrency mining giant Bitmain in the latest Hurun Global Rich List, an annual ranking of the world’s biggest billionaires published Chinese media Hurun Report.

Issued on Feb. 26, the new Hurun Report’s list of 2,816 global billionaires includes six individuals who made their fortune from blockchain and crypto industry.

Bitmain’s ousted co-founder lost over one billion dollars in a year

Similarly to previous compilations by the Hurun Research Institute, the Hurun Global Rich List 2020 includes well-known names in the industry such as Binance’s CZ, OKCoin’s founder Xu Mingxing and Chris Larsen, a co-founder and former CEO of Ripple.

However, the latest…


View More Article
Ethereum

Formula 1 Open Tokenized Crate Sale on Ethereum Blockchain

single-image

bitbond bitcoin lending

F1 Delta Time, the Ethereum-powered blockchain game has begun to sell in-game item crates. 

Players are now able to purchase a collection of cars, parts, drivers and racing gear with the ERC-721 non-fungible tokens (NFT), according to F1 Delta Time official announcement from Feb. 25. The sale will run through March 9, with 6,500 total crates up for grabs with prices set to increase from the current levels after March 3.

NFT’s are a form of a digital collectible that are not interchangeable since they carry unique qualities and vary in their level of rarity. 

What’s on offer?

Those who purchase the crates will also have a chance to win one of three limited-edition cars from the “Four Guardians Apex” with the number of entry tickets determined by the rarity level of the crate. There are four crate types…


View More Article