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January 2016

Secondary Market for Telegram Tokens Sees 400% Return for Investors

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Telegram

Telegram

Telegram’s eagerly awaited blockchain, Telegram Open Network (TON), is set to be launched on October 31. However, the yet-to-be issued tokens are already trading on an unauthorized secondary market.

Purchase Agreement Does Not Allow For Resale

Investors are already seeing returns as high as 400% on Telegram tokens, known as grams; however, secondary buyers run the risk of their investment being worthless, as a clause in the initial offering of grams prevents their resale in any way before the launch of TON. The company is also running on a deadline, and if TON doesn’t launch by October 31, then the company will be forced to refund $1.7 billion USD raised during an offering in February and March of 2018.

The purchase agreement states that “buyers of grams may not offer, pledge, sell, swap, encumber or dispose of their tokens, directly and indirectly,” nor may investors sell “any securities convertible into or exercisable or exchangeable for the investment contract” between an investor and Telegram. Despite these restrictions, a secondary market for grams sprung up before the ICO had even ended.

The Talk of the Industry

Grams initially sold for $0.37 USD in the first offering and $1.33 USD in the second. In the secondary market, grams were reselling for $2, which is an increase of 440% from the first ICO. This highlights the huge potential and serious interest in Telegram’s blockchain network, which was the talk of the industry early last year. However, Telegram is yet to publicly acknowledge TON, and both offerings were extremely secretive and highly selective. Telegram had planned for further ICOs; however, these plans were unexpectedly shelved last May.

>> Binance Launching Venus Blockchain Project: Challenging Facebook’s Libra?

Some Concerns

The lack of movement from Telegram has raised some concerns from market analysts, particularly Francis Pouliot, who said, “Is the real use-case of blockchain technology the elaboration of mechanisms to launder money via shady public financing schemes?”

Telegram is a cloud-based instant messaging platform, very similar to WhatsApp but with self-proclaimed superior encryption capabilities, with a user-base in excess of 200 million. The company was founded by Russian entrepreneur Pavel Durov in 2013 and is yet to yield a profit.

Featured image: DepositPhotos © prykhodov

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VanEck Bitcoin ETF | SEC Postpones Decision for Another 90 Days

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VanEck Bitcoin ETF

VanEck Bitcoin ETF

The United States Securities Exchange Commission has postponed its decision regarding VanEck Bitcoin ETF proposal for 90 days moving the deadline to August 19th, 2019.

VanEck Bitcoin ETF 

The SEC gave a 35 day period for collecting information as well as more insight on the proposal that was initially filed last year by the Chicago Board Options Exchange. Early this year when the US government shutdown reduced the operational abilities of the SEC, CBOE withdrew its request for a rule change. However, on January 31st it subsequently reapplied following the resolution of the government shutdown.

The news of VanEck Bitcoin ETF did not shock the cryptocurrency community although the bitcoin price has modestly retreated since Sunday’s 2019 new high. Even with this pullback in the price of bitcoin the market has witnessed several catalysts this year that are expected to continue fueling the bull market. Equally, the securities exchange will not focus on Bitcoin forever.

In the SEC filing, there are 14 questions posed to the public regarding the proposal from which its responses and arguments will help in reaching a decision. The issues raised generally concern the protection of public interest and investors from any form of fraud or exploitation.

Bitcoin ETF Issued by Bitwise Delayed

Another bitcoin ETF that is issued by Bitwise was delayed last week by the SEC. the decision not to say anything about VanEck at the time left many speculating the fate of this high profile ETF as the May 21 deadline approaches.  In a tweet attorney Jake Chervinsky indicated that the SEC may have needed more time to make a decision on the VanEck ETF because of semantics.

Although the SEC chose to put on hold both bitcoin ETFs, they nonetheless did not reject them altogether. It is likely that they are buying time until there is a necessary regulatory framework to govern the crypto industry.

Featured Image: Depositphotos / nevarpp

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Cryptocurrency Witnesses Better Returns than Equities This year

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cryptocurrency

cryptocurrency

Good days may be ahead for cryptocurrencies. The sentiment of digital assets is improving slowly after witnessing a bear trend in 2018. The total cryptocurrency market cap has increased considerably by over $50 billion USD since the beginning of 2019. Many digital assets are outperforming the market when compared to the largest indices worldwide.

CCI30 Increases by 40%

Since the beginning of this year, the CCI30 (Cryptocurrency Index 30) has gained as much as 40%, reversing the initial downtrend. Cryptocurrencies like Bitcoin (BTC), which witnessed a drop in the middle of February 2019, have recuperated losses and slowly moved up. Bitcoin, which has a considerable effect on the CCI30, has increased by 20% since the first of this month.

BTC Bull Run

It is time for the cryptizens to cheer because the price of Bitcoin has surged to a 4-month high of $4,900 USD, at the time of writing, and looks to be continuing to grow. The price of BTC increased by almost 17% in just 30 minutes today. The reason behind the surge may have to do with investors going long on this cryptocurrency. It appears to be the start of a bull run for Bitcoin. According to speculators, the price of Bitcoin is expected to reach $50,000 USD.

>> Coinbase Jobs Rank in LinkedIn’s Top 50 US Employers List 2019

According to the billionaire and bitcoin enthusiast, Tim Draper, everyone will use Bitcoin for daily remittances, even for buying a coffee, by 2021. Tesla founder and fanatic of cryptocurrency, Elon Musk, said Bitcoin is better for transferring money when compared to current processes.

NASDAQ Gearing to Launch Bitcoin Futures

The biggest stock exchange, NASDAQ, is geared to unveil Bitcoin futures in 2019. Bakkt, a digital asset platform, mobilized funds of $182.5 million USD. This is set to launch in the latter half of 2019. The firms currently supporting Bakkt include Boston Consulting Group, Pantera Capital, and Galaxy Digital.

Featured image: DepositPhotos @ iqoncept

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