‘Treasure Ship’ ICO Dupes Investors – South Korea Asks Interpol for Help

‘Treasure Ship’ ICO Dupes Investors – South Korea Asks Interpol for Help

News South Korean police have asked Interpol for help with an investigation into the fraudulent token sale of Shinil Gold Coins that were claimed to be backed by the “treasure” on the sunken Dmitrii Donskoi. Local media reported that the sale raised an estimated $53.5 million from about 124,000 investors. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Treasure Ship Without Treasure South Korean company Shinil Group announced on July 18 that it had discovered the shipwreck of Russian battleship Dmitrii Donskoi that was scuttled in 1905. The company also claimed at the time that about 200 tons of gold were found on board. The firm subsequently backtracked on its treasure claims after the country’s financial watchdog, the Financial Supervisory Service (FSS), started investigating it for stock and initial coin offering (ICO) fraud, as news.Bitcoin.com previously reported. However, before withdrawing its claims, the ICO presale had already taken place through a Singaporean company with the same name, Shinil Group, the Korea Herald described. Shinil Gold Coin tokens are supposed to be backed by the treasure on the Dmitrii Donskoi. Nikkei reported that a full-page advertisement was run in a South Korean newspaper last month, detailing: The newspaper ad said Shinil, one or the other, would soon show video of the Donskoi wreck and, in the first half of 2019, distribute dividends worth 10% of the value of the treasure that it estimated at 150 trillion won ($133 billion) to holders of the Shinil Gold Coin cryptocurrency. Citing that the tokens were sold “to some 124,000 investors” during the presale, the Korea Herald elaborated, “Shinil was estimated to have raised funds worth almost 60 billion won [~$53.5 million] as of July 26 on the claim.” The Singaporean Shinil Group claims that “the value of a coin was expected to rise to 10,000 won [~$9] compared to a presale price of 30-50 won [~$0.03-0.05], once it completed an initial coin offering on cryptocurrency exchanges,” the publication added. Meanwhile, “experts have said imperial Russia would have no reason to load vast treasure on a ship that was going into battle and have also noted that there was a safer land route to Vladivostok, the treasure’s supposed final destination,” AFP reported. Connection to Singaporean Company As the FSS launched its…

The Weekly: China Hires Cryptographer, McDonald’s Unveils Maccoin

The Weekly: China Hires Cryptographer, McDonald’s Unveils Maccoin

The Weekly In this week’s daily editions of Bitcoin in Brief we reported about China hiring a cryptographer, McDonald’s unveiling Maccoin, Bitmain getting richer and much more. The most commented-on article during the week covered Paul Krugman’s new attack on the idea of cryptocurrency on the pages of The New York Times. Also Read: $37 Million of Bitcoin Revenue Helps Square Accelerate Growth in Q2 Vitalik Wants More Crypto Cards On Monday, we reported that the founder of Ethereum, Vitalik Buterin, seems to think that there is too much effort to bring cryptocurrencies to Wall Street rather than Main Street. The crypto influencer twitted: “I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.” Bitmain Gets Richer The big news on Tuesday was that  Bitmain has added another $2 billion to its valuation, making the Chinese mining behemoth worth a whopping $14 billion ahead of its IPO. Bitmain reportedly pulled in a profit of $1.1 billion in Q1 of 2018 alone. To place that in context, the total value of all BTC mined in the same period was around $1.3 billion. It seems there really is more money in selling shovels than in chasing digital gold. There’s no official date for Bitmain’s IPO yet, other than that it’s coming “very soon”. McDonald’s Unveils Maccoin An interesting story we covered on Wednesday is that to celebrate the 50th anniversary of the Big Mac, McDonald’s has announced the Maccoin, a “limited edition global currency” backed by the Big Mac. Starting at lunch time on August 2, customers can receive a Maccoin with the purchase of a Big Mac at 14,000 participating restaurants across the US. For the rest of the year customers can redeem their Maccoin for a free Big Mac at participating McDonald’s restaurants in the US and in more than 50 participating countries. The company said that more than 6.2 million Maccoins will be distributed globally in over 50 countries while supplies last. Poloniex Under Investigation On Thursday, it was reported that the Delaware-based cryptocurrency exchange, Poloniex, has…

Mt. Gox Creditors Agree to $1.3Bil Repayment in BCH, BTC, No Altcoins, by Summer 2019

Mt. Gox Creditors Agree to $1.3Bil Repayment in BCH, BTC, No Altcoins, by Summer 2019

News Mt. Gox, the defunct and disgraced bitcoin exchange (at one time the biggest in the world) is preparing a final chapter in a long, sorted ordeal. Creditors have coalesced around a repayment scheme to make victims whole. It includes what might amount to $1.3 billion in returned bitcoin cash (BCH) and bitcoin core (BTC) as early as summer of 2019. Also read: Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton Mt. Gox Creditors Outline Plans for Repayments by Summer of Next Year The civil rehabilitation plan, a legal maneuver short of formal bankruptcy within the Japanese system, has been updated this August, relating to Mt. Gox and making victims whole. In an announcement published recently, creditors revised policy to better reflect feedback from the previous iteration. Mark Karpeles of Mt. Gox back in 2014 The revision includes how formal repayment to victims will be in bitcoin cash (BCH) and bitcoin core (BTC) through existing accounts on various exchanges or pre-approved, newly opened accounts. “We think it desirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily,” creditors clarified. Another sticky issue seemingly resolved, at least for now, is that of fiat paper, cash. Gox still holds residual cash from previous sales, and creditors wish that repaid to who they term “monetary creditors” first. 168,000 in BCH and 160,000 in BTC Alternative coins to either BCH or BTC are no longer being considered in the creditors’ repayment scheme. Differing selections of alts, their notorious volatility, all conspired against their usage in this matter. Creditors describe the notion as “unrealistic.” True too would be such a dump on broader altcoin markets. “There is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins. Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters,” Gox creditors insisted. The August statement details how 168,000 in bitcoin cash and 160,000 in bitcoin core, combined with Gox “derivatives” will be paid by the trustee, summer of next year, assuming the rehabilitation is formally approved (which seems likely). The…

The Weekly: China Hires Cryptographer, McDonald’s Unveils Maccoin, Bitmain Gets Richer

The Weekly: China Hires Cryptographer, McDonald’s Unveils Maccoin, Bitmain Gets Richer

The Weekly In this week’s daily editions of Bitcoin in Brief we reported about China hiring a cryptographer, McDonald’s unveiling Maccoin, Bitmain getting richer and much more. The most commented-on article during the week covered Paul Krugman’s new attack on the idea of cryptocurrency on the pages of The New York Times. Also Read: $37 Million of Bitcoin Revenue Helps Square Accelerate Growth in Q2 Vitalik Wants More Crypto Cards On Monday, we reported that the founder of Ethereum, Vitalik Buterin, seems to think that there is too much effort to bring cryptocurrencies to Wall Street rather than Main Street. The crypto influencer twitted: “I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.” Bitmain Gets Richer The big news on Tuesday was that  Bitmain has added another $2 billion to its valuation, making the Chinese mining behemoth worth a whopping $14 billion ahead of its IPO. Bitmain reportedly pulled in a profit of $1.1 billion in Q1 of 2018 alone. To place that in context, the total value of all BTC mined in the same period was around $1.3 billion. It seems there really is more money in selling shovels than in chasing digital gold. There’s no official date for Bitmain’s IPO yet, other than that it’s coming “very soon”. McDonald’s Unveils Maccoin An interesting story we covered on Wednesday is that to celebrate the 50th anniversary of the Big Mac, McDonald’s has announced the Maccoin, a “limited edition global currency” backed by the Big Mac. Starting at lunch time on August 2, customers can receive a Maccoin with the purchase of a Big Mac at 14,000 participating restaurants across the US. For the rest of the year customers can redeem their Maccoin for a free Big Mac at participating McDonald’s restaurants in the US and in more than 50 participating countries. The company said that more than 6.2 million Maccoins will be distributed globally in over 50 countries while supplies last. Poloniex Under Investigation On Thursday, it was reported that the Delaware-based cryptocurrency exchange, Poloniex, has…

Money or Assets? How World Governments Define Cryptocurrencies

Money or Assets? How World Governments Define Cryptocurrencies

Cryptocurrencies — what are they? Money? Commodities? Securities? Utility tokens? Or something else? Few national governments seem to be in any kind of agreement on this question, and for now, at least, their divisions have given such currencies as Bitcoin and Ethereum a floating, indeterminate status on the global stage. As a result, cryptocurrencies lack a single, definite existence, with some nations treating them as money (e.g., Japan, Germany) and others treating them as an unregulated, speculative asset (e.g., Mexico, Denmark), making them the financial equivalent of Schrödinger’s cat. However, as this review of classifications of crypto throughout the world will show, cryptocurrencies are all these things and more, which is why they deserve to be classified by future legislation according their own, unique qualities. United States: securities, commodities, property, money As an indication of how difficult it may be for world governments to ever reach a global consensus on the status of cryptocurrencies, it’s worth pointing out that there’s currently little consensus within nations — let alone among them. This is nowhere more evident than in the United States, where five separate agencies have all had their own competing classifications of cryptocurrencies. First up is the Securities and Exchange Commission (SEC), which — up until June — defined cryptocurrencies in general as securities, meaning assets in which someone invests in the expectation of receiving a return. In March, for example, it issued a public statement indicating that it would regulate anything being traded via an exchange platform as a security. “A number of these platforms provide a mechanism for trading assets that meet the definition of a ‘security’ under the federal securities laws. If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.” Bitcoin declined by 10 percent following this announcement, yet the statements of other American authorities and agencies differ with the SEC’s assertion that cryptocurrencies are securities. Because, also in March, a New York federal judge ruled that the Commodities and Futures Trading Commission (CFTC) can regulate BTC and other currencies as commodities, putting them on the same level as gold,…

$32mil Raised by Mining Company Listed on London Stock Exchange

$32mil Raised by Mining Company Listed on London Stock Exchange

Markets and Prices Idealistic startup Argo Blockchain PLC, a mining company, is the first cryptocurrency-related firm to sit on the prestigious London Stock Exchange. In only its initial trading day, Argo raised $32 million, earning a $61 million valuation in the process. Also read: Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton Mining Company Argo Blockchain PLC Rakes In $32 Million on the LSE At 16 pence per share, 156,250,000 shares sold, slightly over half of Argo’s capital has been booked, totaling $32 million, and that means the startup has a baseline valuation of $61 million now that it is listed on the London Stock Exchange (LSE). LSE has roots going back nearly half a millennium, and can currently boast of a market cap north of four and a half trillion dollars. Listing Argo gives crypto-related businesses a huge boost of legitimacy, and especially if all goes well. Registered shareholders such as Jupiter Asset Management, Henderson Global Investors, and Miton Capital helped secure that $32 million right out of the gate. Jonathan Bixby, cofounder of Argo, explained to The Telegraph how his company intends to “take the pain and heartache out of participating in the biggest new technology breakthrough since the launch of the internet.” It hopes to capture market share through helping the crypto curious mine, also known as Mining as a Service, MaaS.  Founded in late 2017, Argo aims to build an international data center management business for assisting in crypto mining as a service (MaaS), which would be available to anyone in the world, the company’s LSE document states. The company’s platform itself has only been around a little over two months, however subscriptions are currently sold out. Early Days for Cryptoshpere Literacy By May of this year, the company was without profits, and yet set its sights on being the first crypto-related firm to have a seat at the London Stock Exchange (LSE). The United Kingdom Listing Authority approved Argo, essentially a cloud mining pool idea familiar to enthusiasts. For legacy finance, and most of the known world, it’s early days for cryptocurrency literacy, and if the average person is even aware of mining, they’d probably not be familiar with mining services. The difference here is emphasis…

Markets Update: Bears Claw Billions Off Digital Currency Valuations

Markets Update: Bears Claw Billions Off Digital Currency Valuations

Markets and Prices Cryptocurrencies tumbled once again today in value as a great majority of digital assets are seeing losses this Saturday. Since our last markets update the entire digital currency economy shaved another $15 billion off the market capitalizations of all 1,600+ cryptocurrencies. Alongside the dreary prices, trade volumes have also been lackluster, leading many individuals to believe there may be more dips to come down the line. Also read: High Times Becomes the First IPO to Accept Cryptocurrencies Cryptocurrencies Fall in Value Once Again This Weekend A bunch of the top digital assets took a hit again today after a bit of consolidation and while other coins nurtured the wounds suffered from the last dip on August 1. During the past four days, the entire market valuation of all the digital currencies in existence has lost $15Bn USD. At the moment bitcoin core (BTC) markets are hovering just above the $7,000 mark after dropping earlier today from $7300 down to $6926 very quickly. During the first hour of August 4, bitcoin cash (BCH) values were around $731 per BCH, but at the same time all the other cryptocurrency markets dipped, BCH followed suit by dropping down to $692. At the moment BCH is hovering around $696 per coin. The other currencies in the top five market capitalizations ETH, XRP, and EOS have also seen losses over the last 24-hours between 2-4 percent. Tether (USDT) takes the ninth position on Saturday, August 4, 2018. Bitcoin Core (BTC) Market Action Today bitcoin core markets have lost around 5.4 percent and over the last seven days 14.9 percent in value. Right now the most traded pair with BTC this Saturday is tether (USDT), commanding 51 percent of trades. This is followed by USD (25.8%), JPY (13.2%), EUR (3.6%), and KRW (2.6%). The top five exchanges swapping the most BTC include Bitflyer FX, Binance, Bitfinex, Coinbene, and Okex. Bitcoin core’s entire market valuation at the time of publication is $121B, and over the last 24 hours, there’s been $4.2B worth of BTC traded. The top cryptocurrencies traded on the peer-to-peer platform Shapeshift is ethereum (ETH) for BTC and the coin’s dominance rating amongst all other market valuations is 47.7 percent. BTC/USD Technical Indicators Looking at the hourly and…

This ICO Project Wants to Detokenize Itself

This ICO Project Wants to Detokenize Itself

Crowdfunding Digipulse, a Latvian startup offering “crypto-inheritance” services, has decided to completely detokenize its business. Only two of its clients signed up on the platform using its native tokens. The team also says it doesn’t like to rely on price speculation but wants to create value with its service. Also read: Cars and Pizzas for Crypto in Russia, Crypto Valley in South Korea Creating Value Rather Than Speculating The young Latvian company that news.Bitcoin.com reported on recently, Digipulse, has announced a decision that’s not very typical for ambitious startups in the crypto space but on the other hand, it makes perfect sense, given the circumstances. Company CEO Normund Kvilis has just explained in a blog post why the team wants to completely detokenize its business model. In order for Digipulse to become synonymous with digital asset inheritance, it needs to create value with its service, rather than token price speculation, Kvilis notes. He also points out that despite all advantages, the Digipulse token value fluctuates based solely on speculation – a process that doesn’t support a sustainable business development. The chief executive of the project goes on to say: Therefore, in what appears to be a rare case in crypto, we’ll be offering our investors several token exchange options before delisting the Digipulse token from exchanges on December 15th, 2018. Mr. Kvilis admits it wasn’t an easy decision but adds that the data collected by Digipulse shows the token isn’t fulfilling its main objective. “Out of the 320 service sign-ups we’ve had until July 25th, only two people have actually allocated tokens to the service, meaning that only two people have actually used the DGPT token for its main purpose,” he says in the post. Over 20 million DGPT tokens were issued during the token sale. All Tokens to Be Removed, Delisted and Burned Digipulse now plans to remove all of its tokens from circulation and delist DGPT from crypto exchanges before mid-December. After that, it will burn all coins, including tokens allocated to the founder and the company. Instead, it offers investors with token holdings exceeding 10,000 DGPT a direct stake in the company’s equity. All other token holders will be provided with various options relating to the use of the Digipulse platform, including…

Gox Creditors Agree to $1.3Bil Repayment in BCH, BTC, No Altcoins, by Summer 2019

Gox Creditors Agree to $1.3Bil Repayment in BCH, BTC, No Altcoins, by Summer 2019

News Mt. Gox, the defunct and disgraced bitcoin exchange (at one time the biggest in the world) is preparing a final chapter in a long, sorted ordeal. Creditors have coalesced around a repayment scheme to make victims whole. It includes what might amount to $1.3 billion in returned bitcoin cash (BCH) and bitcoin core (BTC) as early as summer of 2019. Also read: Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton Mt. Gox Creditors Outline Plans for Repayments by Summer of Next Year The civil rehabilitation plan, a legal maneuver short of formal bankruptcy within the Japanese system, has been updated this August, relating to Mt. Gox and making victims whole. In an announcement published recently, creditors revised policy to better reflect feedback from the previous iteration. Mark Karpeles of Mt. Gox back in 2014 The revision includes how formal repayment to victims will be in bitcoin cash (BCH) and bitcoin core (BTC) through existing accounts on various exchanges or pre-approved, newly opened accounts. “We think it desirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily,” creditors clarified. Another sticky issue seemingly resolved, at least for now, is that of fiat paper, cash. Gox still holds residual cash from previous sales, and creditors wish that repaid to who they term “monetary creditors” first. 168,000 in BCH and 160,000 in BTC Alternative coins to either BCH or BTC are no longer being considered in the creditors’ repayment scheme. Differing selections of alts, their notorious volatility, all conspired against their usage in this matter. Creditors describe the notion as “unrealistic.” True too would be such a dump on broader altcoin markets. “There is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins. Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters,” Gox creditors insisted. The August statement details how 168,000 in bitcoin cash and 160,000 in bitcoin core, combined with Gox “derivatives” will be paid by the trustee, summer of next year, assuming the rehabilitation is formally approved (which seems likely). The…

Bithumb Resumes Deposit and Withdrawal Services – Upbit Reveals 127% Cash Reserves

Bithumb Resumes Deposit and Withdrawal Services – Upbit Reveals 127% Cash Reserves

Exchanges South Korean exchange Bithumb has resumed deposit and withdrawal services for a number of cryptocurrencies after the recent hack. Another major Korean exchange, Upbit, has released an audit report showing more crypto and cash reserves than needed to pay customers. Meanwhile, all customer deposits at Korbit will now be held by a bank. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Bithumb Resumes Deposit/Withdrawal Services Bithumb, South Korea’s largest crypto exchange, announced on Saturday, August 4, that deposit and withdrawal services for nine cryptocurrencies will be resumed on August 4 at 7 p.m. KST. The nine cryptocurrencies are BTC, ETH, ETC, XRP, LTC, BCH, ZEC, QTUM, and MITH. This list was revised from an announcement two days prior which stated that 10 cryptocurrencies would be included and the services would restart at 11 a.m. KST. XMR was subsequently left out of the new list without explanation. The exchange detailed: Bithumb has been undergoing system security check and security upgrade, the enhancement in the customers’ order to secure our asset. As the security check and upgrade have been completed, we would like to re-open cryptocurrency deposit and withdrawal services. However, the exchange noted that “some cryptocurrencies with a significant price difference of about 10% between the Bithumb market and the standard market will be opted out for this round in view of protecting our customers’ assets.” Recently, the exchange suspended issuing new virtual accounts after NH Nonghyup Bank refused to renew its real-name account service with the exchange, as news.Bitcoin.com previously reported. Upbit Audit Report Shows Plenty of Reserves Upbit, South Korea’s second largest crypto exchange, released an audit report Friday. The audit was conducted on June 28 and 29 by Eugene Accounting Corp and focused on 145 coins and the exchange’s deposits, according to Upbit. The report “was completed after checking the company’s balance in its digital wallet and bank account,” the Investor detailed, adding: Upbit operator Dunamu said its cryptocurrency reserve ratio stands at 103 percent of total deposits made by customers with cash reserve ratio of 127 percent. The company, however, has not revealed the exact figures. Dunamu CEO Lee Sir-goo was quoted saying “we hold excess amounts of cryptocurrency and cash reserves than what we have to pay our customers,” noting…