Bitclub the Amazing Bitcoin mining company that’s 100% legit!

Bitclub the Amazing Bitcoin mining company that’s 100% legit!

It took 4 years for BitClub Network to reach over $100,000,000 per month in sales and 300,000 customers. BITCOIN was at a low of $330 in October 2014 and, in December 2017, reached a peak of $19,500. According to many Wall Street analysts and high-level banking, will soon reach $100,000. How many will you have in the next 3 to 5 years? There are two ways to earn BITCOIN with Bitclub Network:

1) Acquire mining pools with the largest leverage in the sector. Turn $3,500 into $150,000.

2) Build a global marketing team of entrepreneurs with mining equipment and be paid daily in BITCOINS.

More than 300 people are already earning $1 million a year and referring others can earn thousands more in the coming years.


CHECK CURRENT GLOBAL BITCOIN LEGALITY HERE (Coin.Dance Site)


You can check the following links below to verify that Bitclub network is the real deal.


Recent blocks Found By BitClub Network

Hashrate Distribution Amongst the Largest Pools

Bitclub Blocks at depth 472167 in the bitcoin blockchain


Active Bitcoin Mining pool BitClub Network

Active Bitcoinity Bitcoin Network Hashrate

Active Bit.com Bitcoin Pool Distribution

Active Bitcoin Ticker Mining Pool Charts

Coin Dance Active Bitcoin Ticker Mining Pool Charts


Ethereum Top 25 Miners by Blocks

Etherchain.org Top Miners over the last 24hrs


https://themerkle.com/bitfury-and-bitclub-mining-pools-upgraded-to-new-bitcoin-core-version/

 

https://themerkle.com/top-6-bitcoin-mining-pools-signalling-segwit/

 

https://themerkle.com/top-6-companies-and-projects-supporting-both-segwit-and-bitcoin-unlimited/

 

https://themerkle.com/unknown-bitcoin-cash-miners-control-almost-97-of-the-networks-hashpower/

 

https://themerkle.com/3-largest-bitcoin-transaction-fees-ever-recorded/

 

https://themerkle.com/bitcoin-cash-mining-difficulty-adjustments-help-the-network-adjust-and-grow/

 

https://themerkle.com/bitfury-signaling-segwit-activation-brings-network-hashrate-support-to-28/

 

https://themerkle.com/bitcoin-cash-price-heads-toward-1000-as-trading-volume-outpaces-bitcoins/


https://www.ccn.com/first-8mb-bitcoin-cash-block-just-mined/

 

https://www.ccn.com/antpool-founder-shares-post-claiming-hardfork-issue-comes-money/

 

https://www.ccn.com/bitcoin-cash-price-makes-push-for-3000-as-wider-market-stumbles/

https://www.ccn.com/user-error-sees-bitcoin-mining-pool-earn-135000-fee/


https://cointelegraph.com/news/bitclub-is-accused-by-bitcoin-unlimited-suppor…

 

https://cointelegraph.com/news/durban-bitcoin-seminar-aims-at-educating-south-afri…

 

https://cointelegraph.com/news/bitcoin-mining-with-zero-fee-btccom-joins-mining-pool-race

 

https://cointelegraph.com/press-releases/saint-petersburg-will-host-a-crypto-industry…

 

https://cointelegraph.com/news/worlds-third-largest-bitcoin-mining-pool-s…

 

https://cointelegraph.com/news/blockchain-experts-mine-zcash-but-be-cautious

https://cointelegraph.com/news/watch-out-certain-android-mobile-devices-can-steal-your-bitcoin

 

https://cointelegraph.com/bitcoin-cash-for-beginners/how-to-mine-bitcoin-ca…

 

https://cointelegraph.com/news/malaysian-exchange-coinbit-people-are-looki…


https://www.nasdaq.com/article/the-curious-case-of-bitcoins-moby-dick-spa…

https://www.nasdaq.com/article/where-bitcoin-mining-pools-stand-on-segr…

 

https://www.nasdaq.com/article/russias-crypto-winter-shows-sig…

 

https://www.nasdaq.com/article/why-do-some-bitcoin-mining-pools-mine-e…


https://zycrypto.com/why-the-chain-split-might-no-longer-happen-on-august-1st/


https://www.coindesk.com/bitcoin-foundation-donation-mining-pool/

 

https://www.coindesk.com/accidental-136000-bitcoin-mining-pool/

 

https://www.coindesk.com/bitcoins-new-scaling-agreement-reaction/

 

https://media.coindesk.com/uploads/2017/08/shutterstock_240272434.jpg

 

https://www.coindesk.com/bip91-begins-bitcoins-miners-signal-segwit2x-scaling-proposal-early/

 


https://news.bitcoin.com/mining-pool-bitclub-network-mines-first-bitcoin-un…

https://news.bitcoin.com/mining-pool-bitclub-network-mines-first-bitcoin-unlimited-block/

https://news.bitcoin.com/mining-pool-btc-com-80-btc-fee-refund/

https://news.bitcoin.com/bitcoin-cash-flips-mining-profitability-which-may-entice-more-miners/

https://news.bitcoin.com/bitcoin-scaling-countdown-miners-segwit2x-software/

https://news.bitcoin.com/bither-ceo-bitclub-performing-segwit-related-attack-network/

https://news.bitcoin.com/six-months-later-bitcoin-cash-support-continues-to-grow/

https://news.bitcoin.com/bitcoin-cash-8mb-block-479469-clears-over-37000-transactions/

https://news.bitcoin.com/chandler-guo-mining-pool-jump-bitcoin-unlimited/

https://news.bitcoin.com/bitcoin-cash-mining-difficulty-drops-significantly-sp…

https://news.bitcoin.com/calvin-ayre-launching-bitcoin-cash-mining-operations/

https://news.bitcoin.com/blockchain-data-reveals-someone-is-trying-to-slow-down-bitcoin-cash/


https://bitcoinmagazine.com/articles/russias-crypto-winter-shows-signs-thaw-saint-p…

https://bitcoinmagazine.com/articles/curious-case-bitcoins-moby-dick-spam-and-mi…

https://bitcoinmagazine.com/articles/why-do-some-bitcoin-mining-pools-mine-e…

https://bitcoinmagazine.com/articles/alt-convention-conference-invites-blockchain-fintech-bitc..

https://bitcoinmagazine.com/articles/greenaddress-is-first-bitcoin-wallet-to-launch-rep..

https://bitcoinmagazine.com/articles/where-bitcoin-mining-pools-stand-on-segre…


http://www.businessinsider.com/bitcoin-pools-miners-ranked-2015-7

http://www.businessinsider.com/bitcoin-pools-miners-ranked-2016-6

http://bitcoinist.com/bitclub-network-mines-colossal-fee/

http://bitcoinist.com/bitcoin-unlimited-overtakes-segwit/


There is the dark side of Bitclub too. Accusations the owners are criminals, Accusations that Bitclub is a Ponzi, so we need to address these claims and issues.

Let’s talk about the criminal accusations. There are three owners of the Bitclub DAO (soon to incorporate as of this writing) I know two of them.

  1. Russ Medlan (I know him, shared a drink or two with him, did some development work for him and his friend Corey Citron and know his temperament, his demeanour and social behaviours from the late 90s in San Diego). He was not a criminal; he was a car salesmen type of MLMer and he partied a lot. His run in with the law occurred when he met a woman at a strip club who worked there as a stripper and started dating her. She claimed and carried a fake ID showing she was 18 years old. He got accused of statutory rape by the mother, and despite he believed she was an adult the fact was she was 17 years old. He got arrested and he plea bargained and avoided the felony charge but was classified as a sexual offender. That is it.
  2. Joe Frank (I have known of Joe for many years) and met him last year in his home in Southern California. I originally flew out there to pitch investing in my company, to discuss the natures of Bitcoin mining and the market of Bitcoin in general. This is when I discovered he was a founder of Bitclub (I had heard of them) and he spent the good part of the day educating me about the company, it’s visions, his part in it, our friend Russ and I came away from that meeting impressed with what they had built in a little less than 4 years at that time. Joe is a philanthropist, visionary and solid person. He is a brilliant business man and you will find nothing but positive reviews of him in his history.
  3. Joby Weeks (I have only heard about Joby never meeting him), surrounded with controversy and at logger heads with Bitcoin Jesus (Roger Ver), nothing new in that regards.

Joby Weeks LinkedIn Account:https://www.linkedin.com/in/jobyweeks/

Excerpts from Networking Times – July/August 2004 Edition (Volume 3, Issue 5)

A remarkable man any age, Joby Weeks at 21 speaks with the wisdom of an elder, attains goals with the tenacity of seasoned CEO, and plays life hard and fast like the youth he is.

Joby took one giant step further from the lineage when, just weeks before starting college (with textbooks purchased, a place to live and student loans applied for), Joby’s mom gave him a copy of Rich Dad Poor Dad.Young Joby’s entrepreneurial spirit ignited and he walked away from the education his family had expected of him.

At 18, when Joby told his grandfather that he was deferring college to try a network marketing business for a year, his grandfather was so upset, they didn’t speak for three months.By the time he was 19, he had earned the distinction of being his company’s youngest Presidential Director.

At an age when his friends were out partying, Joby stayed focused on achieving his first financial goal of $10,000 per month.Joby’s passion for making a difference in people’s lives shows up in his business, his philosophy, and his philanthropy.”If you’re going to live life, why not make a huge impact?You’re going to put the time in any way, so why not build an asset?If I worked a job really hard ten, or 15 years, I can’t even sell it when I want to quit.Why not build a business that’s going to pay me for the rest of my life, and then give my kids the comfort they deserve?”

Huge success and enterprise notwithstanding, Joby still finds ample time to play.An avid snowboarder, he can be found spending as much as 50 days a year with his buddies, riding the Colorado Rockies.Recently he carried a snowboard to the summit of Mt. Elbrus in Chechnya, the tallest mountain in Europe, and cruised all the way down!

Now Joby is teaching people to do exactly what he did in his MLM company, and now, a few years later, he has utilized a system which is allowing people to do what he did in a tenth of the time.

No criminals here.

Is Bitclub a Ponzi?

What makes a Ponzi a Ponzi and what are the indications. Ponzi’s make promises of a set return on a single or series of investments. The average lifespan of an Internet Bitcoin based Ponzi is never beyond a year.

Red Flags (From SEC.GOV)

  1. Guaranteed returns (Bitclub does not publish or offer, set or guarantee returns) Bitclub makes it clear the volatile nature of the industry, the increasing difficulty of mining set against the cloud funding and continued growth of their data centers (mining facilities)
  2. Overly consistent returns (Bitclub returns fluctuates dynamically up and down with the market) Bitclub will suggest assessing historical returns to determine the health and potential of future returns. To understand the cyclical nature of the markets and to compare the business to other mining options before making an educated decision. And to also recognize one person’s results never guarantee another’s results.
  3. Unregistered investments (Bitclub does not register because it is not an investment), it is the purchase of machines (hardware you buy and own) that converts electricity into Bitcoin and distributes the product equally among the mining machine owners.
  4. Secretive and/or complex strategies (Bitclub is 100% transparent) with mining data centers producing their own revenue directly from mining. Small commissions are paid on new mining purchased shares, but as of today Bitclub holds over $1.5 billion in equipment with 8 data centers and the most recent one about to open in Montana. All data centers are open for tours and there are 1000s of videos of people taking those tours.The Bitclub datacentre pools represent as 1 of the top 10 platforms or pools in the world in Bitcoin, Bitcoin cash, Ethereum and Monero.
  5. Difficulty receiving payments. (Bitclub has been in business for 4+ years) never has there been any reports of not being paid or payments delayed. In fact, Bitclub has extended the mining contracts from 600 days to 1000 days and made mandatory compounding (rebuying of equipment) optional.
  6. Must recruit new distributors to receive payments. (Bitclub’s primary income source is from mining) Yes, Bitclub does pay a small commission on pool shares (mining equipment purchases) but the bulk of revenue comes from mining results.

Bitcoin Ponzi’s have been around for about 4 years. Onecoin (more a pyramid scheme) being the most notorious, not even being a real crypto coin has been running from country to country like a Whac-A-Mole game. Begun in 2016 it has been able to survive from country to country leaving a trail of financial wreckage, government arrests and violations charged against Onecoin and owner Ruja Ignatova. One can easily confirm this being a highly illegal and corrupt operation from the 1000s of negative testimonies and accusations of people who have lost everything, and a list of 100s of countries declaring Onecoin illegal, a criminal operation with many arrests made.

Read more here: https://en.wikipedia.org/wiki/OneCoin

 

The vast majority of these Bitcoin Investment Scams (also known as Bitcoin Lending Programs) never last beyond a year. Like Gladiacoin, Ecoinplus, Jetcoin (Forbes Article), Laser.Online , Bitconnect (Lasted a whole year) and the granddaddy of Bitcoin fraudster Ponzi USI Tech, which has drawn the attention of all the news reporting blogs.

THE MERKLE
USI Tech Withdrawal Issues Leave Cryptocurrency Users Worried

https://themerkle.com/usi-tech-withdrawal-issues-leave-cryptocurrency-users-worried/

Is USI Tech Another Bitcoin MLM Scam?
https://themerkle.com/is-usi-tech-another-bitcoin-mlm-scam/

CCN
Bitcoin Ponzi Scheme Promises Return to North America

https://www.ccn.com/bitcoin-ponzi-scheme-promises-return-north-america/

Scam-Free: Binance CEO Officially Receives Twitter Verification
https://www.ccn.com/binance-ceo-officially-receives-twitter-verification/

COINTELEGRAPH
Texas Regulator Inspects 32 Crypto Promoters, Warns Of ‘Widespread Fraud’

https://cointelegraph.com/news/texas-regulator-inspects-32-crypto-promoters-warns-of-widespread-fraud

COINDESK
Texas Slaps Bitcoin Investment Firm With Cease-and-Desist

https://www.coindesk.com/texas-slaps-bitcoin-investment-firm-cease-desist/

Texas Takes Aim at Overseas ICO with Cease-and-Desist
https://www.coindesk.com/texas-takes-aim-at-overseas-ico-with-cease-and-desist/

BITCOIN.COM NEWS
USI Tech Ordered Not to Mess with Texas

https://news.bitcoin.com/bitconnect-slapped-with-securities-emergency-cease-and-desist-order/

USI Tech and Bitconnect Slapped with Securities Emergency Cease and Desist Order
https://news.bitcoin.com/bitconnect-slapped-with-securities-emergency-cease-and-desist-order/

BTCMANAGER
Texas State Securities Board Investigation Uncovers 32 Illegal Cryptocurrency Schemes

https://btcmanager.com/texas-state-securities-board-investigation-uncovers-32-illegal-cryptocurrency-schemes/

The PONZI Bitcoin lending is alive and thriving. This is the growing list of new Ponzi scams daily.
https://icoreview.site/


Bitclub has also been accused of being a Ponzi scam.

Spurious sites like BehindMLM , Steemit and Kipicommunity with claims like:

KIPICOMMUNITY.ORG
Bitclub Network Ponzi Scheme – Don’t Fall For It. (2016)

http://kipicommunity.org/bitclub-network-review/

The arguments against Bitclub are old (2016) weak and all of the claims have proven to be false as time has marched on 2 years later.

STEEMIT
Criminals behind Bitclub-Network Investment Scam

https://steemit.com/scam/@steeme/criminals-behind-bitclub-network-investment-scam

There is no factual accusations in this article and again it is over 2 years old. If you read it, make sure to read all the comments as well. Use your own best judgment.

BEHINDMLM
BitClub Network abandon US, on the run from regulators?

http://behindmlm.com/companies/bitclub-network/bitclub-network-abandon-us-on-the-run-from-regulators/

ETHAN VANDERBUILT
BitClub Network Scam? Yes It Is In My Opinion!

https://ethanvanderbuilt.com/2018/03/22/bitclub-network-scam-yes-opinion/

99BITCOINS
[Investment Warning] Bitclub Network Review and Analysis

https://99bitcoins.com/anatomy-bitcoin-scam-bitclub-network-analyzed/

All of these critical sites make claims from assumed opinions, fake news, false facts and old information. Do your own research with the facts I have presented here.

In my opinion, Bitclub is not a typical MLM and should be considered a crowd-funded mining operation with a solid ROI for just investing in the Mining offer. One does not need to recruit to make a good profit. The “optional” compounding for greater mining shares has the potential of returning a .05 Bitcoin earning per month to 3 times that in 1000 days to .15 Bitcoins per month into perpetuity when one options to continue the compounding.

By 2020 the vast majority of pundits agree that Bitcoin will be trading for more than $150,000 per coin and with a monthly projected return of .15 per month the expected income would be significant.

Bitclub is a legitimate business model and not a typical Hope and Dreams scheme like most MLM offers.

Written and published by
Thomas Prendergas
t

 

 

 

 

Australia’s Securities Watchdog Moves to Halt ‘Deceptive’ ICOs

Australia's Securities Watchdog Moves to Halt 'Deceptive' ICOs

The Australian Securities and Investments Commission (ASIC)

said Tuesday that it is taking aim at fraud in the initial coin offering (ICO) market. In a statement published May 1, the agency said that it is "issuing inquiries to ICO issuers and their advisers where we identify conduct or statements that may be misleading or deceptive." Additionally, the securities watchdog suggested that it was moving to halt unlicensed activity as well. "As a result of our inquiries, some issuers have halted their ICO or have indicated the ICO structure will be modified," ASIC disclosed, though it didn't say how many token sales have been canceled or changed in light of the agency's actions.

ASIC commissioner John Price explained:

"If you are acting with someone else's money, or selling something to someone, you have obligations. Regardless of the structure of the ICO, there is one law that will always apply: you cannot make misleading or deceptive statements about the product. This is going to be a key focus for us as this sector develops."

As CoinDesk previously reported, the move was perhaps expected. Price spoke about token sales on April 27, declaring the agency's intention to focus on overseas-based ICOs that target would-be Australian investors. "I cannot stress enough that if you are doing business here and selling something to Australians – including issuing securities or tokens to Australian consumers – our laws here can apply," Price said at the time.

In Tuesday's statement, ASIC indicated that it would be scrutinizing a popular aspect of ICO marketing – the white paper – as it looks into whether those behind such sales are in compliance with Australian law. "In one recent example, ASIC took action to protect investors where we identified fundamental concerns with the structure of an ICO, the status of the offeror and the disclosure in its white paper," the agency explained. "In addition to potentially misleading statements in the white paper, the offer was an unregulated managed investment scheme."

Written By

Stan Higgins
stan@coindesk.com

A member of CoinDesk's full-time Editorial Staff since 2014, Stan has long been at the forefront of covering emerging developments in blockchain technology. Stan has previously contributed to financial websites, and is an avid reader of poetry. Email: stan@coindesk.com. Stan does not currently hold value in any digital currencies or projects.

https://www.coindesk.com/australias-securities-watchdog-moves-halt-deceptive-icos/

Compliant Airdrops Are Here: CoinList to Offer Investors Free Crypto Giveaways

Compliant Airdrops Are Here: CoinList to Offer Investors Free Crypto Giveaways

Who'd have thought giving something away could be so complicated?

That's the question crypto innovators have had to come to terms with since the concept of "airdrops" – or the practice of gifting tokens in massive giveaways – has come under the scrutiny of government regulators. But with the launch of a new product Wednesday, CoinList, an initial coin offering (ICO) facilitator spun out of the renowned startup incubator AngelList, is looking to streamline the process of airdrops in a way that doesn't run afoul with the law.

Aptly named Airdrops, the product runs users through compliance checks and attestations so that a token issuer can give CoinList's users free tokens. On top of that, if the issuer is looking for users that meet certain criteria (be it a profession or location), they can verify that users actually fit those backgrounds. In this way, CoinList CEO Andy Bromberg believes he has found a way to enable airdropped offerings at a time when many in the industry are looking for a compliant service. Token issuers themselves have had no shortage of issues here, with some, including video-monetization service Stream, even backing off the concept altogether because of the regulatory uncertainty.

Indeed, the SEC hasn't taken a formal stance on how it views crypto tokens delivered through ICO, airdrops or other forms of sales and giveaways, but it's clear regulators are currently investigating that question. Still, Bromberg is confident in his assembled solutions, and in interview, he hinted at dialogue with regulators that would attest to the viability of the service. "In our typical compliance first mindset, we sat down and said: Is there a way to pull this off without violating securities laws? And what we came to is the compliant Airdrops product," Bromberg told CoinDesk.

He continued:

"I can't comment on individual discussions with the SEC. What I can say is we are in frequrent communication with them and — based on our understanding of securities law — we are very comfortable with this."

Not only does the startup believe it has a solution for working under existing securities law, but it's also opening up its existing user base of past investors to new token issuers. Once users have gone through the company's compliance flow, they will be verified to receive airdrops, and CoinList will take a nominal fee from users (less than $1 per airdrop) to accept new tokens. To date, according to a CoinList spokesperson, it has facilitated more than $400 million worth of token sales through its platform, representing what could be a vast pool of people interested in investing and taking part in future crypto tokens.

Compliance as a service

While that pool of potential investors will likely be attractive for token issuers, Coinlist's product is opt-in – a feature added to reduce spam and mitigate the security threats that have become a common annoyance from crypto enthusiasts involved in such offerings. Also, CoinList says it's only willing to work with token issuers that are focused on complying with the law. And that's partly because CoinList will be promoting these projects for issuers.

Still, CoinList's Airdrops product seems to be set up whereby all the compliance effort is offloaded from the issuer, which many issuers will like since many are not securities law experts. CoinList's product allows for airdrops that might fall under Regulation S and Regulation D and will also collaborate with AngelList spin-off Republic, which has a license to sell securities under limited conditions to non-accredited investors using Regulation CF.

The company is also doing a country-by-country analysis to determine what sorts of checks issuers will need to do in order to airdrop to users around the world. Depending not only on the goals of the issuer and who they want to give to, different levels of know your customer (KYC) and anti-money laundering (AML) requirements will be needed, and whether issuers can to both accredited and unaccredited investors or one or the other.

And all of this has already proven enticing to token issuers. Bromberg told CoinDesk the company is in negotiations with more than one issuer to use its Airdrops product but declined to disclose which ones. While CoinList has so far been focused on fundraising, Bromberg said that potential issuers will not have to have a token sale on the platform in order to use the new product. "We're interested in exploring this model where in some cases … funding might be separate from distribution," Bromberg said.

The right recipients

Still, different companies might have very different goals for an airdrop, and Bromberg gave two examples of use cases he believes could work well. For example, he said a company with a token it believes regulators will recognize as a utility token, something used primarily to access a certain service, can use CoinList to get it in the hands of people who are likely to be the most interested.

This issuer might target software developers, and in this case, CoinList would enable them to authorize the airdrop to check a users Github API and distribute to developers with a certain commitment frequency. Getting the tokens in the hands of people who will ultimately use the token as intended "will help that network get to a place where that token is no longer a security," Bromberg said. Still, there could also be companies that want to issue securities, Bromberg said: "A company could tokenize some of their equity and give that equity, give those tokens, to early users on the product."

As such, CoinList will also offer a wide array of ways to authenticate users as meeting certain objectives, be it a certain audience on Twitter, a certain location in the world or a certain occupation. It can use APIs off other websites to verify these target goals to insure that an airdrop recipient meets them. Because it is running KYC/AML checks on all of them, it also verifies that each user receives a token allocation only once. "It prevents gaming the system," Bromberg said. It's an approach designed for an excess of caution, but one that's also ready to adapt.

"Whether or not these things are securities, we are treating them like securities to be as safe as possible," Bromberg said. To that end, some startups have been meeting with the SEC to ask for what's called a no action letter, a document that says regulators believe a given company has not violated securities law. If something like that comes to pass, CoinList is confident enough that the platform is ready for that, too.

Bromberg concluded:

"We'd be open to airdropping without the compliance layer."

Written By
Brady Dale

Brady Dale is a reporter who has previously written for Fortune, Technical.ly Brooklyn, Next City and Motherboard, among others. He grew up in Kansas and lives in Brooklyn. As an early user of the crypto-powered social network Steemit, Dale earned Steem Power by participating on the site.
https://www.coindesk.com/coinlist-compliant-airdrop-token-giveaways/

 

US: SEC Official Says ICO Regulation Should Be ‘Balanced’, Congressman Suggests Ban

US: SEC Official Says ICO Regulation Should Be ‘Balanced’, Congressman Suggests Ban

In a hearing at the US House of Representatives

on Thursday, April 26, a regulator from the US Securities and Exchange Commission (SEC) and House Financial Services Committee members hotly disagreed over whether a “balanced approach” could be taken in regulating Initial Coin Offerings (ICOs). At the start of the hearing, entitled “Oversight of the SEC’s Division of Corporation Finance”, William Hinman, the director of the SEC’s Division of Corporation Finance, said that the area of digital assets and

ICOs “continues to evolve”:

“We are striving for a balanced approach, and one that ensures capital formation while maintaining a strong focus on investor protection.”

One purpose of the hearing was to discuss possible reasons for the declining number of Initial Public Offerings (IPO) in the country. Committee member Bill Huizenga asked Hinman if ICOs could be a solution to this decline, and whether all ICOs must be regulated. In response, Hinman said that “in theory, there is a time when a coin may achieve a decentralized utility in the marketplace, or […] there may be coins where that lack of a central actor may make it difficult to regulate.”

Hinman followed previous comments from SEC chairman Jay Clayton that most ICOs should  be considered securities. According to Hinman, the SEC would be consulting with entities releasing tokens to verify that the offerings were either regulated or not qualified as securities. Committee member Brad Sherman (D-CA) disagreed with the idea that ICOs could replace IPOs, as an IPO “provides jobs in the real economy,” and

ICOs do “the opposite”:

“It takes money out of the real economy, it takes people willing to invest and risk, and says ‘don’t use that ability to risk, don’t use those animal spirits to help create a job for a person who needs one, let alone build a factory for thousands, sit there and trade back and forth in the ICO.’”

Sherman then asked why ICOs haven’t been “stopped,” noting that the “balance” mentioned by Hinman will negatively affect the economy:

“When you strike a balance between those who are trying to create a new currency to facilitate drugs, tax evasion, to deprive the Fed of its ability to market our securities and return 100 bln dollars or so to the US treasury, all the balances are for total investor protection, which could be achieved by totally banning.”

Sherman said of the decentralized nature of ICOs:

“Charlatans and scammers have always favored decentralized new enterprises.”

Committee member Tom Emmer (R-MN) took a different approach, saying that there “is a lot of of ignorance about how special this area is”,

he continued:

“The typical attitude too that I get from so many elected officials is that have no idea what they are talking about […] everyone who is participating in [an area they don’t know] is either bad or dishonest, and an official must rush in and help people .”

The SEC and the Commodity Futures Trading Commission (CFTC) held a cryptocurrency hearing in February of this year. They reached the conclusion that ICOs need the most amount of oversight, digital ledger technologies (DLT) like Blockchain the least, with virtual currencies like Bitcoin (BTC) falling somewhere in between.

Written By
Molly Jane Zuckerman
https://cointelegraph.com/news/us-sec-official-says-ico-regulation-should-be-balanced-congressman-suggests-ban

Molly Jane is a Russian Literature major from California with a background in writing. She joins Cointelegraph after working as a freelance journalist and blogger.

TRON To Gift 30 Million TRX to Ethereum (ETH) Users

TRON To Gift 30 Million TRX to Ethereum (ETH) Users

TRON (TRX)–TRON has had an exciting month.

The currency is up nearly 110% since the start of April, with most of the growth coming within the last week. While all of cryptocurrency is benefiting from the resurgent price in Bitcoin and renewed interest in the market, TRON is posting one of the largest gains over that timespan. TRX is also coming off the successful Test Net update at the end of March, which served as a prelude for May’s official Main Net launch.

 

Billion Dollar Investment and AirDrop

In the midst of all this positive news for TRX, Justin Sun and the TRON foundation made two stunning announcements. The first involved the creation of a 2 billion USD investment fund, designed to reward developers in TRON and spur further innovation. Ripple created a similar stir two weeks ago with a 25 million USD investment into Blockchain Capital, a fund designed to recognize and accelerate cryptocurrency startups. TRON’s fund will target TRX developers directly, providing greater incentive to develop on the upcoming TRON network, in addition to giving the currency greater exposure in the industry of crypto.

The TRON Foundation also made a somewhat bizarre announcement that they would be “gifting” via airdrop 30 million TRX coins to current Ethereum holders. At first, most of the TRON community thought it was an error in translation on behalf of Sun, and that the airdrop would really be targeting TRX addresses. However, the airdrop is indeed intended for all Ethereum wallets holding over 1 ETH at the start of 2018. Ethereum addresses that qualify will be receiving a randomized amount of TRX between 10 – 100 coins.

Gifting TRX as a Marketing Strategy

While fork-produced coins and air drops have become fairly common in cryptocurrency over the past year, a Foundation-endorsed gifting of coins to a potentially rival currency is a bit of an anomaly. TRON’s AirDrop to Ethereum may be the first time that a crypto has given free coins, previously unannounced, to a currency that has the potential to be a rival in terms of technology.

Justin Sun has framed the ETH airdrop as a thank you to Ethereum and Ethereum holders for hosting TRX during its transition to Main Net, but the move creates substantial benefits for TRON valuation and adoption, at least from a marketing standpoint:

  1. Getting a foot in the door with ETH holders.
    Despite the relationship between TRON and Ethereum as an ERC-20 token, the two currencies will be on diverging paths following the Main Net update. By gifting TRX to the Ethereum community, TRON has the potential to gain new users on the emerging platform, or at least create a cohort of crossover investors. At 0.05 USD apiece, 10 – 100 TRX is not a significant amount of money, but it still makes ETH holders invested in the future of TRON, in addition to sparking an interest that would otherwise not be present.
  2. Broad publicity and brand building.
    TRON has carved itself out as a contrarian to  most of the market of cryptocurrency. While other coin groups are concerned with re-inventing digital money and the landscape of traditional fiat, TRON is attempting to disrupt the online entertainment industry by devising a new platform. Just Sun’s marketing has been criticized in the past for being overhyped. Gifting TRX to the Ethereum community is not only a headline-grabbing move, but also paints TRON as a distinction to the rest of the market: Justin Sun and the TRON Foundation are willing to take risks and think outside of the established box, a feature necessary to disrupt an industry as broad as entertainment.
  3. Avoiding a pump and dump.
    At first, the Ethereum airdrop was met with confusion from the TRON community, as most thought TRON holders would be the recipient of the free coins. However, there is a distinct problem with the TRON Foundation gifting coins to its user base: it creates the conditions for inflation and/or pump and dump. If TRON were to announce an airdrop coming to TRX holders (let’s say any wallet with over 1000 TRX) following the launch of Main Net, it would create a positive price run for investors looking to get free coins. The aftermath would be similar to other airdrops, and the price of TRON would tank back to pre-announcement levels. Sun and the TRON Foundation are avoiding creating any sort of empty hype in their currency by targeting the users of a different cryptocurrency, in addition to making the airdrop retroactive to wallet balances at January 1, 2018.

In all, the Ethereum airdrop is more than just a marketing strategy to get TRON into headlines. It also opens the door to greater interest and investment in TRX through broader appeal, and could serve as the basis for more cryptocurrency circulation in the future.

Written By
Stuart Redman
http://technewsleader.com/2018/04/26/tron-trx-airdrop-ethereum/

What Is AirDrop? How Does It Work?

What Is AirDrop? How Does It Work?

Policing the wild frontierRegulating virtual currencies and ICOs

Policing the wild frontierRegulating virtual currencies and ICOs

A legal framework for the crypto-sphere is starting to take shape.

In response, national authorities are starting to think seriously

about a legal framework for finance’s unruly frontier. Regulators fret about how to classify ICOs and tokens (are they securities, or not?) and how to tax them. They want to stop their use for such evils as money-laundering and financing terrorism. And they worry about how to protect retail investors from the risk of losing their shirts.

Indeed, scarcely a day passes without a supervisor somewhere calling for tighter regulation, or taking action. On April 6th the Financial Conduct Authority in Britain warned firms offering services linked to crypto-derivatives that they were subject to its rules. On April 10th Taiwan’s finance ministry said it was planning crypto regulation aimed at money-launderers. On April 17th New York state’s attorney-general asked 13 crypto-exchanges for information about their operations, conflicts of interest and safeguards for customers.

Regulators are plotting together as well as separately. When the governors of the G20 countries’ central banks met in Buenos Aires in March, crypto was high on their agenda. They agreed that at present these assets are too small to be of systemic importance, but they committed themselves to extending standards to which financial institutions already adhere—such as know-your-customer (KYC) rules and procedures for monitoring unusual transactions—to the crypto-world, in order to thwart the illicit use of virtual currencies.

When bitcoin entered public awareness it was chiefly as a facilitator of anonymous, illegal sales on the “dark web” and as the currency of choice for online ransoms. Many in law enforcement thought its anonymity would make it ideal for criminals of all stripes. But until recently evidence of this was scarce. “The overwhelming view was that crypto-currencies had great utility to cyber-criminals but limited use to other criminals,” says David Carlisle of the Royal United Services Institute, a think-tank. Volatility and illiquidity limited their use for money-laundering. But evidence that crooks are making more use of them is mounting.

The most logical parts of the crypto-infrastructure to regulate are the platforms on which virtual currencies are exchanged for ordinary money. Several countries, such as Australia and South Korea, already do this. The EU’s fifth anti-money-laundering directive, which was passed by the European Parliament on April 19th, also includes measures to regulate exchanges. But many places have no rules at all. That may suit many crypto-entrepreneurs, but not all. Several exchanges are, for example, voluntarily implementing KYC standards (eg, by asking new customers to prove their identities), banning coins promising extra privacy or using software to monitor unusual transactions.

Agreed rules would help to tie exchanges into the mainstream banking system. Many of them currently choose unfussy jurisdictions or institutions, because conventional banks will not serve them. Lenders are wary both of credit risk and of abetting crime if exchanges don’t police users. Proponents of regulation say that once exchanges operate in a clear legal framework, those risks should be reduced and banks will take them on. That in turn will make it easier to keep an eye on exchanges.

Regulators disagree about consumer protection. Some see shielding investors from harm as their job; others think people should be free to gamble if this poses no wider risk. Many have warned investors to be wary of ICOs. Some authorities want both to protect consumers and to allow legitimate crypto-businesses to flourish in their jurisdictions. Gibraltar already licenses some crypto-companies. France is working on a system of voluntary licensing. Iqbal Gandham of CryptoUK, which represents some of Britain’s largest crypto-companies, believes such initiatives could help legitimate businesses gain access to banks and perhaps even advertising. “We also don’t want to have criminals on our platforms,” he says.

Authorities also worry about taxation. They spy a new source of revenue: because trading crypto can be lucrative, they are keen to levy capital-gains tax on any profits. And they fear losing existing income: virtual currencies might be used to hide money. Because most exchanges have operated in the dark, reliable data on crypto-evasion do not exist. Most countries are still working out how to define tokens, let alone tax them. Some are stepping up, however. In February Coinbase, an exchange, said it had unsuccessfully fought an American court order and would have to hand the identities of 13,000 customers to the Internal Revenue Service. Other exchanges have fled to offshore jurisdictions with more favourable tax regimes.

With so many poorly understood risks, some regulators think the only safe answer is to shut the whole crypto-sphere down. China, for example, has banned ICOs and exchanges. But elsewhere this is neither desirable nor practical (it requires tight censorship of the internet). Crypto-enthusiasts see parallels with the early days of the internet, when authorities also strove to control a new arena—and declared it a nest of criminality. Most countries have since decided that the web’s benefits outweigh its costs. It is too early to say whether this will be true of crypto-assets or the blockchain technology that underpins them. But it would be wrong to outlaw them before knowing the answer.

Policing the wild frontier:

Regulating virtual currencies and ICOs
https://www.economist.com/news/finance-and-economics/21741191-legal-framework-crypto-sphere-starting-take-shape-regulating via @TheEconomist

Original URL
https://www.economist.com/news/finance-and-economics/21741191-legal-framework-crypto-sphere-starting-take-shape-regulating

Contributor
Chuck Reynolds

ILPs May Replace ICOs as a New Form of Fundraising

ILPs May Replace ICOs as
a New Form of Fundraising

Although initial coin offerings (ICOs) are seen as a legitimate means

of raising capital, there are no clear legal and technical controls. Initial Loan Procurements (ILP), are, however, an alternative to the risky ICO model. ILPs enable decentralized crowdfunding opportunities by creating a contractually bound agreement which minimizes the risk of ICOs.

According to Carey Olsen’s senior associate Luke Sayer, instead of coin acquisitions, borrowers and creditors “enter into a loan agreement through legally binding smart contract. With an ILP, a creditor’s investment is contractually tied to the performance of the company.” Therefore, if the company is profitable, the creditor receives annual returns.

Estonia-based startups Blockhive and Agrello have partnered to launch the first ILP called ‘Blockhive.’ Instead of issuance tokens, borrowers have a “contractual entitlement to 20 percent of their annual operating profits.” The goal is to continue decentralized crowdfunding with greater protection for borrowers, improved functionality without the interferences of government regulations.

Problems with ICOs

According to a report by Fabric Ventures and Token Data, startup companies raised $5.6 billion in 2017 through ICOs. While the ICO model of raising capital has great potential for high returns, it has become significantly scrutinized. “I think a lot of what’s happening in the ICO market is actually fraud, and I think that will (eventually) stop,” said Brad Garlinghouse, CEO of Ripple to CNBC.

Unfortunately, many ICOs were scams that extorted money from unsophisticated investors. While they pretended to have a genuine and viable product, once the ICO finished, the website and product information disappeared. Investors, therefore, receive a token that has little to no value. While many ICOs back “high-quality projects… there have been a lot of copycat projects where people copy all the same materials (and) don’t intend to deliver any value to the people buying the tokens,” said Joseph Lubin, co-founder of Ethereum, as he told CNBC.

In response to the high level of ICO scams, the Government of Gibraltar, a British Overseas Territory on Spain’s South Coast, and Gibraltar Financial Services Commission (GFSC) on February 12, 2018, confirmed that they were developing legislation in regards to tokenized assets. “Token regulation is the natural progression following the regulation of DLT Providers, being vital to the protection of consumers,” said Sian Jones, Senior Advisor on distributed ledger technology (DLT) at the GFSC. “One of the key aspects of the token regulations is that we will be introducing the concept of regulation authorized sponsors who will be responsible for assuring compliance with disclosure and financial crime rules.”

ILPs: an alternative to ICOs

Agrello, a legal startup that builds legally-binding contracts on the blockchain, and Blockhive are currently working together to launch the first ILP called ‘Blockhive.’ Blockhive will use the Agrello ID that provides support for all legal requirements which include Know Your Customer (KYC) and anti-money laundering solutions.

Agrello’s agreement also ensures that creditors’ data is encrypted and stored on the blockchain network. Users must register to receive the protocol’s Future Loan Access Tokens (FLAT – transferable loans assigned to third parties) as soon as they lend their funds to Blockhive. Once registered with the tokens, users can access and transact on the Blockhive platform. Unlike ICOs, ILPs can reduce instances of fraud and money-laundering. With new functionalities that prevent scams, ILPs may enable decentralized crowdfunding opportunities without restrictions from regulatory bodies in the future, if it becomes widely adopted.

Authored by
Cindy Huynh

Cindy is a writer, digital marketer and content creator from Australia. She is currently a digital nomad fascinated by blockchain technology. Cindy believes blockchain technology and cryptocurrencies can disrupt existing industries and has the potential to revolutionize the world. In her spare time she enjoys learning new ideas and scuba diving with friends.

Tags – blockchain, cryptocurrency, finance, fintech, ICO, ILP, regulation, startups, technology

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Fear and HODLing at MIT: Blockchain Experts Weigh Impact of SEC Action

Regulation: It's good for you,

but it's going to hurt. That seemed to be the main takeaway for the cryptocurrency industry from Monday's Business of Blockchain conference at the Massachusetts Institute of Technology (MIT). On the one hand, the event was clouded by speculation that the U.S. Securities and Exchange Commission (SEC) may go as far as to classify two of the top three coins by market cap, ethereum and Ripple's XRP, as securities. Such a determination could subject a wide swath of industry members to legal penalties – far beyond the promoters of recent initial coin offerings (ICOs) who were already on alert the last few months. Those fears were reinforced late in the day when Gary Gensler, an old lion of financial services regulation, confirmed for the crowd that in his view, bitcoin's two largest rivals may fit the description of securities in U.S. law.

"Ripple Labs sure seems like a common enterprise, or the Ethereum Foundation in 2014," said Gensler, a former chairman of the Commodity Futures Trading Commission. "Ripple is doing a lot to advance the value of XRP." (The so-called Howey test says something is a security under U.S. law if it is an investment in a "common enterprise" offering an expectation of profits from the efforts of others.) Yet, on the other hand, the general sentiment at the event was optimistic about regulators' growing involvement in the space.

Neha Narula, director of the Digital Currency Initiative at MIT Media Lab, for example, told CoinDesk insufficient regulation can actually stifle innovation by deterring honest players because rampant scammers undermine market integrity. And aligning with Gensler, Narula said, there need to be more honest conversations about the fact that many emerging cryptocurrencies are actually securities. However, there may not be a bright line separating the two.

As Narula said:  

"We're realizing money versus equity isn't a binary choice. It's a spectrum."

Coming pain

And that realization could have a serious impact on the cryptocurrency industry. Patrick Murck, counsel at Cooley LLP and fellow at Harvard's Berkman Klein Center for Internet & Society, told CoinDesk the token economy could be on the verge of a dramatic shift if the SEC agrees with Gensler. If ether and XRP are deemed securities, cryptocurrency exchanges and general industry promoters or foundations, or anyone who sold or evangelized projects like ethereum to the general public, could be subject to legal penalties.

"It would be like shooting fish in a barrel," Murck said, adding:

"There's nothing magical about the blockchain that absolves you from investor protection regulations if investors have to trust you to deliver something."

Driving that point home, Gensler in his talk cited several reasons that the way ethereum and XRP were issued and traded seemed to meet the definition of securities.

For example, the 2014 ethereum crowdsale would have created an expectation of profit for the people who purchased tokens before the network went live. "The Ethereum Foundation offering had a 50 percent appreciation right in the first 42 days written into the offering," Gensler said on stage. (The industry think tank Coin Center in Washington, D.C. promptly issued a statement that "ether is not a security," rebutting Gensler's argument.)

Meanwhile, for issuers of new tokens, it's almost impossible to walk the line, even with more feedback from regulators and lawyers. For example, so-called airdrops, once viewed as a way to avoid breaking securities laws by simply sending free tokens to people who already have some type of cryptocurrency wallet, are instead creating a damned-if-you-do, damned-if-you-don't situation.

If issuers fail to collect information about recipients of airdrops, they may inadvertently violate international sanctions (what if that wallet belongs to someone in Iran?). On the other hand, if they do collect such information, the airdrop may start to look like an investment in regulators' eyes, according to Murck. "The SEC has interpreted the first prong of the Howey Test broadly," Murck told CoinDesk. "The collection of information may be enough to fit the first prong" – pegging an airdrop as "an investment of money."

Long-term gain?

Even so, Murck joined others at the conference in welcoming regulators' participation in the space. "They're becoming a part of our blockchain community and that's a valuable thing," Murck said. Part of the value is clearing up uncertainty. The shortage of such clarity was illustrated during a talk by Kathleen Breitman, a co-founder of the Tezos project.

When asked whether securities regulations apply to her project's tokens, Tezzies, she responded:

"I don't know. I don't mean to play coy, I'm not just an attorney…I would recommend token holders comply with relevant laws."

But Gensler said legal clarity is slowly emerging in this red-hot market. "If you do an issuance now, in April 2018, do it under U.S. securities laws," said Gensler, who is now a senior lecturer at the MIT Sloan School of Management, "It's better to bring it into a public policy framework, even if there's a little bit of a chill." And perhaps some cooling off would be healthy. MIT's Narula said she is deeply concerned about the lack of due diligence completed for many, if not most, cryptocurrency projects. Just because the code is open source doesn't mean that knowledgeable people have evaluated it.  

"A lot of investors don't know that. They go by signaling," Narula said. "A lot of projects have had some pretty fundamental flaws that were exposed only after a project launched." If nothing else, the excited chatter in the halls of MIT suggested that regulatory encroachment has yet to put a damper on the energy being channeled into blockchain tech.

Amber Baldet, the former JPMorgan Chase blockchain expert, said what makes her optimistic about the space, writ large, isn't skyrocketing coin prices or even regulatory clarity on the horizon. It's the explosive growth of this community in the wake of the 2017 boom. "In order to have an internet of value, people are going to have to interact with each other," Baldet said, speaking to the need for an ecosystem that includes everyone from enterprises like her former employer to accredited investors to retail investors.

She concluded:

"You meet thousands of people tackling these challenges in unique ways."

Authored by

Leigh Cuen

Leigh Cuen is a tech reporter covering blockchain technology for publications such as Newsweek Japan, International Business Times and Racked. Her work has also been published by Teen Vogue, Al Jazeera English, The Jerusalem Post, Mic, and Salon. Leigh does not hold value in any digital currency projects or startups. Her small cryptocurrency holdings are worth less than a pair of leather boots.

Original Site
https://www.coindesk.com/fear-hodling-mit-blockchain-experts-weigh-impact-sec-crackdown/

How Can I Get Free Cryptocurrency From an Airdrop?

In the cryptocurrency space,

already prone to extreme levels of interest by digital money enthusiasts, some of the most-hyped events are airdrops. An airdrop is an event in which a cryptocurrency developer issues free coins or tokens to a user base, sometimes as a result of a hard fork and sometimes as part of a promotion or other change in network design. The key for most investors is becoming aware of the airdrop phenomenon before it takes place. If you find out too late, you've missed out on your chance for free tokens or coins. Fortunately, a report by decentralpost.com provides cryptocurrency investors with tools to gain more advanced notice about these special promotions and giveaways.

Airdrops That Take Place Alongside Hard Forks

One of the most common scenarios in which an airdrop is likely to take place is a hard fork of a major cryptocurrency. More than 20 bitcoin hard forks have taken place in the past year, for instance, and some of these resulted in investors who previously held bitcoin receiving new tokens for simply maintaining their investments. EtherZero, LitecoinCash, and MoneroV were projects that caused a similar level of investor sensation in recent months. In each of these cases, though, time showed that the forked coin was far less important than the original, and the new altcoin eventually lost interest and value.

Staying Apprised

How should an investor go about monitoring upcoming airdrops to make sure that he or she has access to the latest altcoin information? One of the first and most important tools is Twitter. This social media platform has become a hotbed for cryptocurrency investors, and it's common for a digital currency developer to provide information about an upcoming airdrop via a tweet. Investors may even regularly search for the phrase "airdrop" on Twitter, although this can provide a deluge of information that is difficult to sift through. For this reason, dedicated Twitter accounts like Crypto Airdrops and AirdropAlert can be useful.

Besides Twitter accounts dedicated to upcoming airdrops, information about these events can be found at a number of different websites. Of course, there is no guarantee that any information found on Twitter or on one of the sites above will be genuine, or that a newly issued digital currency will not be fraudulent, so investor caution is paramount.

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.

Authored by

Nathan Reiff
http://www.investopedia.com/corp/contactus.aspx?writerid=54684&subject=Investopedia Contact Form

Nathan Reiff is a writer and musician based in the New York City area. He holds degrees from Yale University and the University of Michigan. Nathan has previously worked for Orion Consultants and Partners in Performance and has written for Internet Brands on subjects ranging from money matters to personal and home development. His interests include technology, travel, and food.

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