Day: March 2, 2021

MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

The money transfer firm MoneyGram is facing a class action lawsuit claiming that the company made false and/or misleading statements about its partnership with American blockchain company Ripple and the legal status of the XRP token.

Per a press release by Rosen Law Firm, the suit has already been filed, and on behalf of purchasers of the securities of MoneyGram between June 17, 2019 and February 22, 2021.

According to the lawsuit, in this period, defendants made false and/or misleading statements and/or failed to disclose that:

“XRP, the cryptocurrency that MoneyGram was utilizing as a part of its Ripple partnership, was viewed as an unregistered and therefore unlawful security by the US Securities and Exchange Commission (SEC);
in the event that the SEC decided to enforce the securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial results throughout the Class Period;
as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.”
The law firm claims that those who purchased “MoneyGram securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.”

A lead plaintiff is yet to be chosen.

MoneyGram and Ripple became partners, after the latter made a USD 30m initial investment in MoneyGram equity in June 2019. However, Ripple found itself in a long battle with the SEC over XRP, as the regulator claims that XRP is an unregistered security, which Ripple disputes.

MoneyGram recently claimed that its support for Ripple stayed in place, but still announced that it would suspend the receipt of “market development fees.” Alex Holmes, the MoneyGram CEO, said at the time that they are “definitely supportive of Ripple’s efforts, but at the same time, we have to do what is right for the organization.”

In 2020, MoneyGram received USD 38m in net market development fees from Ripple in 2020, representing about 15% of the company’s adjusted earnings before interest, taxes, depreciation, and amortization. The company said it also faced logistical challenges in using the platform, as well as legal and reputational risks, following the lawsuit against Ripple.

XRP is (at 14:01 UTC) trading at USD 0.44. It increased 2.7% in a day and decreased 5.8% in a week.

Source : CryptoNews.com

NY Attorney General threatens to shut down cryptocurrency

New York attorney general threatens to shut down cryptocurrency Industry

New York Attorney General Letitia James sent a blistering warning to investors and industry members about the dangers of cryptocurrencies on Monday.

“We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down,” she said in a press release.

The warning from James, which addressed individual investors and crypto industry members, comes amid a major start to 2021 for digital assets such as bitcoin.

The cryptocurrency surged to a new all-time high above $58,000 earlier this month, after garnering attention from Wall Street banks, companies such as Tesla and even the U.S. government.

Bitcoin, which was created in 2009, has evolved from a protest against the banking system to something of a “digital gold” that is beginning to catch on with mainstream investors.

Investment banks such as JPMorgan and Goldman Sachs have shown interest in the asset class. Plus, companies such as Mastercard have made significant moves to support cryptocurrencies. Tesla invested $1.5 billion into bitcoin in February.

The price of bitcoin rose more than 10% over the last 24 hours to hit $48,528, as of approximately 1:51 p.m. ET, according to CoinDesk. Other popular digital currencies include ethereum and litecoin.

James told members of the crypto industry in New York they must be registered with the Office of the Attorney General’s Investor Protection Bureau.

Parties who are obligated to register but fail to do so are subject to civil and criminal enforcement, the office said in a statement.

Monday’s alert comes two weeks after the attorney general filed a lawsuit against Coinseed, a trading platform for digital currency.

James alleged that Coinseed was operating a virtual currency trading business in New York, functioning as an unregistered broker-dealer for more than three years while collecting over $1 million in investors’ assets.

Last week, the attorney general’s office reached a settlement with crypto firms Tether and Bitfinex over allegations that they covered up $850 million of losses. Both firms agreed to pay an $18.5 million penalty but denied any wrongdoing.

“We will not hesitate to take action against anyone who violates the law,” she said.

“Too often, greedy industry players take unnecessary risks with investors’ money, but, today, we’re leveling the playing field and issuing alerts to both investors and industry members across the nation,” James added.

She also told investors to be cautious about investing in cryptocurrencies.

Source – CNBC News

Dubai hedge fund plans to sell $750M Bitcoin for Cardano and Polkadot

Dubai hedge fund plans to sell $750M Bitcoin for Cardano and Polkadot

A Dubai-based, global crypto investment fund, FD7 Ventures with about a billion-dollar under management recently reveals a plan of selling about $750 million worth of their Bitcoin holdings over the next month to increase the company’s positions in Polkadot and Cardano.

Such a move will effectively sell-off a majority of the investment fund’s flagship crypto assets in buying rising cryptos like Cardano and Polkadot. According to the hedge fund, the increase in these altcoin holdings will better cater to the needs of its investors who are looking to diversify their portfolios in the growing crypto market.

Polkadot’s native DOT token serves two clear purposes: providing network governance and operations, and creating parallel chains by bonding. Its founders are Dr. Gavin Wood, Peter Czaban, and Robert Habermeier.
The fast-rising crypto asset is an open-source multichain protocol that enables the cross-chain transfer of any data or asset types, cryptocurrencies, thereby expanding blockchains interoperable with each other.
Cardano (ADA) has been tipped to outperform, on the bias that it had its smart contract launch last month, which will lead to a significant amount of applications built on Cardano in 2021.
This means that more developers will see it as an attractive medium for building their desired apps.
Also, Prakash Chand, Managing Director at FD7 Ventures revealed why such crypto assets based on their fundamentals showed more future.

“Aside from the fact that Bitcoin was first to market and society has given it meaning as a store of value, I think Bitcoin is actually pretty useless,” Chand said.

Chand says the firm intends to sell $750 million in Bitcoin in order to increase its exposure to Cardano (ADA) and Polkadot (DOT), which he believes are the foundation of the new internet and Web 3.0.

The fund manager also believes Ethereum could outperform Bitcoin in the coming years;

“I’ve been lucky enough to spend lots of time with the brightest minds in crypto and I’m willing to bet that each of Ethereum, Cardano, and Polkadot will be more valuable than Bitcoin within the next few years,” he said.

The hedge fund has already started the process of converting their Bitcoin (BTC) to such Cryptos and expects to finish the conversion transactions by mid-to-end of March.

Source – Nairametrics

Bitcoin Price Crashes 20% But Analysts Predict New Record Highs

Why Bitcoin Price Could Extend Its Decline To $41,000

Bitcoin price started a fresh decline after it failed to clear $52,000 against the US Dollar. BTC is sliding and it remains at a risk of a drop towards $41,000.

  • Bitcoin recovered above $50,000, but it struggled to clear the $52,000 resistance.
  • The price is trading well below $50,000 and the 100 simple moving average (4-hours).
  • There is a key declining channel forming with resistance near $49,220 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower towards the $41,000 and $40,000 support levels in the near term.

Bitcoin Price is Showing Bearish Signs

This past week, bitcoin price extended its decline below the $47,000 support zone against the US Dollar. The BTC/USD pair even tested the $44,000 support zone and settled well below the 100 simple moving average (4-hours).

The last rejection zone was near the $52,000 level before the price declined below $45,000. It traded as low $44,360 before correcting higher. It recovered above the 23.6% Fib retracement level of the downward move from the $52,229 high to $44,360 low.

However, the price struggled to clear the $48,000 resistance zone. It also failed to surpass the 50% Fib retracement level of the downward move from the $52,229 high to $44,360 low.

There is also a key declining channel forming with resistance near $49,220 on the 4-hours chart of the BTC/USD pair. Bitcoin is currently moving lower and it is likely to test the $44,000 support zone. If there is a downside break below the $44,000 support zone, there are chances of more downsides towards the $41,000 support zone. The next major support is near the $40,000 level.

Source : newsbtc.com

Bitcoin at ‘Tipping Point’ as Institutions Come on Board

Citi:bank: Bitcoin at ‘Tipping Point’ as Institutions Come on Board

Bitcoin is at the “tipping point of its existence” thanks to large institutional investment and growing regulatory groundwork, according to a new report by Citi obtained by CoinDesk.

While the perception of the cryptocurrency varies greatly, it is undoubtedly the inspiration for a blockchain-based economy and has created a new decentralized cryptocurrency market, according to the paper by Citi Global Perspectives and Solutions (GPS), the bank’s “thought leadership” arm.

Citi describes Bitcoin as blockchain’s “North Star,” owing to its core innovations that formed the building blocks that launched the ecosystem. Whether or not it cedes this status to stablecoins or central banks digital currencies (CBDCs) depends on how it is able to deal with inefficiencies relating to speed, scale and so on.

It will also be significant whether institutional interest cools as life returns to normal post-COVID-19 and inflationary fears abate. “Dampening (sic) institutional enthusiasm would remove a key source of support to Bitcoin and potentially the broader ecosystem, thus pushing it back to its more speculative roots,” the bank paper argues.

Citi’s conclusion references the oft-repeated quote by Arthur Schopenhauer: “All truth passes through three stages: First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident.”

Source: Yahoo Finance