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September 2007

Ripple Makes Last Ditch Attempt to Dismiss Securities Lawsuit

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Ripple

Ripple

Ripple has filed a final motion to dismiss a lawsuit alleging that it held an unauthorized securities sale of its XRP tokens, arguing that the plaintiffs failed to meet a legal deadline for filing the suit.

The crypto company has reiterated its stance that XRP tokens are not a security and, therefore, not held to SEC regulations regarding offerings and has labeled the case against it as “self-defeating.” In addition to this argument, Ripple also says that the case was brought to court after the statute of repose, which states that claims must be made within three years of a security being offered to the public, had expired; therefore, making the case inadmissible.

Ripple first began selling XRP in 2013, meaning any case brought after the three-year statute of repose should be dismissed; however, the plaintiffs argue that the sale of XRP was ongoing at the time the lawsuit was filed in 2018. “The Court’s passing reference to the statute of repose running ‘from the defendant’s last culpable act (the offering of the securities),’ … does not upend the ‘first-offered’ rule,” the filing said, referencing a number of other court cases that supported this argument.

It is reportedly Ripple’s last attempt to have the case dismissed before a scheduled hearing in mid-January. Ripple had previously moved to have the case dismissed back in September, arguing that there were “multiple, independent grounds” for dismissal and that a court “need not resolve whether XRP is a security or currency,” but this argument was waved away by the presiding judge.

>> Ethereum Gets Solid Support from Ernst & Young: What to Expect

At the time of that attempted dismissal, crypto-focused lawyer Jake Chervinsky was critical of Ripple’s defense, saying, “They make twelve separate arguments for dismissal of the plaintiff’s claims. Not a single one squarely addresses whether XRP is an unregistered security.” Ripple will return to the Northern District of California on January 15, 2020.

Featured Image: DepositPhotos © Tolikoff

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Bitcoin Mining Manufacturer Canaan Files for IPO in US Worth $200 Million

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Canaan

Canaan

As per a report, Canaan Creative, the major Bitcoin miner manufacturer, is supposed to have confidentially filed for an IPO in the US.

As Bitcoin has grown into one of the biggest cryptocurrencies in the world, a range of industries have cropped up that are seeking to provide services that will help create a more robust ecosystem, and most of them are bearing fruit.

For instance, new crypto exchanges are cropping up every other day, and it has become an industry in itself. However, not much has yet been talked about the wide range of companies that are solely involved in the mining of Bitcoins, and one of the companies that has made a name for itself in this space is Canaan Creative.

Key Details

It has now emerged that the company is all set to be the first Bitcoin mining company to have its own initial public offering in the United States. It goes without saying this is a significant development for the Bitcoin mining industry at large. It is interesting to note that Canaan had planned to have an IPO in Hong Kong back in 2018 but eventually pulled out. The reason for this probably lies with the state of the crypto market last year. However, 2019 has been a superb year for Bitcoin, and in the first half of the year, the token went on a massive bull run that threatened to replicate the one it had back at the end of 2017.

>> Litecoin Halving: What You Should Know Before the Big Event

Canaan is a Chinese company that is involved in the manufacturing of crypto mining hardware, and in its filing, the company stated that the size of the IPO is going to be $200 million. That being said, the United States Securities and Exchange Commission is going to examine the company’s mining rigs before it allows the listing to take place. This is, without a doubt, another example of the sort of impact that Bitcoin has had on the markets in general, and it is believed that its influence is going to expand in the future.

Featured image: DepositPhotos © zoomteam

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Crypto Insurance Market to Get Boost in Coming Years

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crypto insurance

crypto insurance

Around a decade ago, something called crypto insurance would have drawn puzzlement from everyone. The creation of crypto exchanges made it possible for millions of people all over the world to buy crypto tokens with ease.

Key Analysis

However, the creation of exchanges also drew the attention of hackers, who have, over the years, made away with billions of dollars worth of cryptocurrencies. It is something that has dogged crypto exchanges for many years, and it seems that some of the world’s biggest insurers have finally come up with a solution. It has emerged that Aon and the legendary insurance firm Lloyd’s of London are all set to enter the crypto insurance market.

The cryptocurrency market is currently valued at $300 billion, and its value is only expected to rise in the years to come. Hence, crypto insurance is an idea whose time has come. Lloyd’s of London is a company worth $45 billion and remains the biggest insurance broker in the world. It connects clients to insurers. In 2019 alone, Lloyd’s brokered the $255 million insurance value for crypto exchange giant Coinbase and also the $100 million policy that belonged to BitGo. Aon, the second-biggest insurance broker in the world and rival of Lloyd’s, was also part of the Coinbase deal.

>> Which Cryptocurrencies Will Survive the Next Decade?

Over the years, cryptocurrency exchanges have become increasingly vulnerable to attacks from hackers, and to date, as much as $460 million worth of crypto tokens have been stolen. Binance, the world’s biggest crypto exchange by trading volume, was a victim of a hacking attack earlier in 2019 and lost $40 million. It is important to note that Binance is well known for being one of the most secure platforms and the hack on the platform created a lot of panic in the crypto space. However, the insurance companies are raking it in as the crypto space keeps growing. An expert stated that crypto insurance pays out anything between $200 million and $500 million in premiums to the various insurance companies.

Featured image: DepositPhotos © tashatuvango

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Bitcoin Extends the Fall, Now at One-Month Low Below $8K

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Bitcoin

Bitcoin

The year commenced with a massive rally in Bitcoin (BTC) that ultimately led to a sustained bull run, and the price of the world’s biggest cryptocurrency eventually reached levels that raised visions of 2017’s climb. However, that eventually came to an end, and the last few months have been pretty tough for the crypto industry at large.

Why the Sudden Reversal?

In a new development that would come as a bit of a shock for many in the crypto space, BTC has collapsed to below $8,000 levels today. This is the lowest level for the cryptocurrency in a month, and the latest plunge comes after BTC had been on a bit of a downward spiral for around a week.

At the start of the year, it had been thought that 2019 was going to be a particularly good year for Bitcoin, since institutional money and fresh investors were going to flock to the cryptocurrency. With new money flowing in, the price of the token would have increased steadily as well. However, that has not come to pass. According to the head of investment at asset manager Acra, BTC has seen very low volumes, and fresh capital has not come into it at all in recent days. At the same time, other asset classes, like stocks or bonds, have generated highly impressive returns.

There is a consensus among experts that money may be moving on from BTC and crypto to other asset classes. Earlier on in November, the CEO of Luno, Marcus Swanepoel, observed in a note, “The downward pressure is being caused by a divergence of investment strategy across all asset classes, which has created indecision and cautiousness.”

>> Binance Drops Out of CryptoCompare’s Top 10 Exchanges

The past few days have definitely given the impression that a hard selloff has been taking place, as money is being taken out of the marketplace by traders. However, it should be noted that Bitcoin has had bigger drops and has come back stronger than ever.

Featured image: DepositPhotos © EdZbarzhyvetsky

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