cryptocurrency
Ripple Sued Again for Alleged Sales of Unregistered Securities
July 5, 2018
Ripple Labs Inc. and the company’s CEO, Bradley Garlinghouse, were sued again last week, according to a complaint dated June 27 and filed in San Mateo County, CA. The plaintiff is California resident David Oconer who alleges, in a class action suit, that Ripple and Garlinghouse “promoted, sold and solicited the sale of XRP.” XRP is Ripple’s digital asset. Furthermore, the suit contends that the defendants “raised hundreds of millions of dollars through the unregistered sale of XRP, including selling to retail investors, in violation of the law.”
As Ripple has made efforts to distinguish itself as separate from XRP, including a recent logo change to XRP, the plaintiff Oconer asserts in the lawsuit that Ripple and XRP are, in fact, very much intertwined.
There is a community movement for a unique #XRP symbol. We agree! XRP is independent of Ripple. Submit your idea now. #XRPCommunity https://t.co/ZnfVMiK9i2
— Ripple (@Ripple) May 10, 2018
Ripple has faced a barrage of recent lawsuits that make similar allegations. One lawsuit filed in May by XRP investor Ryan Coffey was recently transferred from state court to federal court. It is now pending in the California Northern District Court under Case #4:18-cv-03286.
Facebook Reverses Cryptocurrecy Ad Ban
June 27, 2018
Back in January, Facebook decided to ban all ads for cryptocurrencies. Yesterday, the social media giant changed its mind. In a post on its blog yesterday, the company stated that it will now “allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings.”
The official new policy read: “Ads may not promote cryptocurrency and related products and services without our prior written permission.”
“Advertisers wanting to run ads for cryptocurrency products and services must submit an application to help us assess their eligibility,” Rob Leathern, Facebook’s Product Management Director, wrote in the official blog post. “[This includes] any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business. Given these restrictions, not everyone who wants to advertise will be able to do so. But we’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time.”
The January ban, also laid out in an official company blog post, said: “Ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.”
Facebook acknowledged in yesterday’s company blog post that the wording of its January ban was “intentionally broad” as they continue to work to better detect deceptive and misleading advertising practices.
Class Action Lawsuit Filed Against Ripple For Sale of Unregistered Securities
May 4, 2018
Ripple’s digital token XRP is a security, a class action lawsuit filed in the Superior Court of California contends. The 32-page complaint brought by XRP investor Ryan Coffey, says the defendants, who include Ripple CEO Brad Garlinghouse, engaged in the sale of unregistered securities, highlighting that they earned over $342.8 million through XRP sales in the last year alone, securities that were created out of thin air.
“Defendants have since earned massive profits by quietly selling off this XRP to the general public, in what is essentially a never-ending initial coin offering (“ICO”). Like the better known initial public offering (“IPO”), in an ICO, digital assets are sold to consumers in exchange for legal tender or cryptocurrencies (most often Bitcoin and Ethereum). These tokens generally give the purchaser various rights on the blockchain network and resemble the shares of a company sold to investors in an IPO. Unfortunately, these ICOs have become a magnet for unscrupulous practices and fraud.”
The complaint alleges that Ripple executives have engaged in pumping schemes meant to increase the price of XRP through attempted bribes, rumors they’ve started, and hype on social media.
The attorney representing the lead plaintiff, James Taylor-Copeland, is no stranger to cryptocurrency. His twitter username is @TCryptoLaw and he runs the website cryptolaw.net.
At LendIt Fintech last month, Ripple co-founder & chairman Chris Larsen said that the company was anti-ICO. “I think it’s a bad thing to get involved with from the founder’s perspective,” he said on stage during an interview with Jo Ann Barefoot, “because, you know, if you’re a founder and you can raise money many ways today, do you really want to do something where you’re going to have the SEC, you know, kind of threat hanging over your head for 10 years with strict liability? You just don’t want that. You know, that’s a problem.”
Chris Larsen on Crypto, Ripple, and ICOs
April 24, 2018At LendIt Fintech, Ripple co-founder and Chairman Chris Larsen got real in his on-stage conversation with Jo Ann Barefoot. This is what you missed:
I think this is a fundamental shift in fintech and what we believe the big thing happening here is the development of a second internet. We call it the internet of value so that value, money, assets will begin moving as quickly and efficiently as data has been moving for the last 25 years
Using SWIFT is like sending a letter. You know, when drop it in the mailbox, you have no idea where it is, if it got there or not. So, getting away from that I think is profound. And what we would say is that, you know, a lot of the backlash from globalization today, it’s not because globalization is bad. It’s essential. It’s that it’s incomplete because globalization needs kind of 3 key systems to be working together and it needs interoperability and data.
I think all new technologies start with a, you know, screw the government, disruption, tear everything down. So, I think that’s natural and then, you know, the internet started that way too and then it has to sort of grow up. And particularly, it’s solving real world problems. Real world problems are always more complicated than that. And then when you switch to finance, this is different. Right? You know, the internet was mostly technology. Mostly. It’s just now kind of crashing into regulatory issues.
I think on some of the other things like ICOs, we’re pretty anti-ICO. I think it’s a bad thing to get involved with from the founder’s perspective because, you know, if you’re a founder and you can raise money many ways today, do you really want to do something where you’re going to have the SEC, you know, kind of threat hanging over your head for 10 years with strict liability? You just don’t want that. You know, that’s a problem.
[..]From building currencies, digital assets, ICOs typically say, “Okay. There’s a currency for this use case and none other.” That’s kind of the opposite of the way it should go. Currencies need to be as liquid as possible. And so, they’re going to have as many use cases as possible. For XRP for example, the kind of early beachhead has been cross border payments, but we see that as just the beginning of something that really has a multitude of use cases. To get as liquid as possible, that’s what drives utility and value at the end of the day. So, I think in all fronts ICOs are problematic and that’s why you’re seeing the regulators crack down on them, not everywhere, but I think they’ll be transformed. They’ll probably look like, you know, IPOs at the end of the day.
Crypto Hype Man Ian Balina Hacked
April 16, 2018Cryptocurrency and ICO hype man Ian Balina has been hacked, according to a statement he published on social media. Balina’s self-reported fortune totaled $3.2 million just days earlier.
“I’m not worried about the money,” Balina tweeted. “I learned my lesson. I only care about catching the hacker.”
Balina is famous in the crypto world for his investment analysis and opinion on ICOs, in part because he managed to turn the $36,000 he had in cryptocurrency in May 2017 to $5.3 million by early January 2018. That rise was catalogued through his daily Instagram posts. The recent bear market cut into his profits significantly but his activity on social media had not let up. As of yesterday, he was still a millionaire.
Now his worth is uncertain.
Balina was previously mentioned on deBanked for having interviewed George Popescu about his ICO for Lampix. The value of Lampix, which Balina said he did not invest in, is down 77% from its ICO price.
Twitter Bans Crypto Ads As Its CEO Praises Bitcoin
March 28, 2018
Following in the footsteps of Facebook and Google, Twitter banned cryptocurrency ads on its platform as of Tuesday. Facebook initiated this policy on January 30 and Google did the same on March 14.
“Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally,” a Twitter spokesperson told CNBC.
As with Facebook and Google, the rationale behind the ban is to protect users from fraud related to cryptocurrencies.
“We are committed to ensuring the safety of the Twitter community. As such, we have added [this] new policy for Twitter Ads relating to cryptocurrency,” the spokesperson said.
Ironically though, Twitter CEO Jack Dorsey has praised Bitcoin and said as recently as last Wednesday, to The Times UK:
“The world ultimately will have a single currency. The Internet will have a single currency. I personally believe that it will be Bitcoin, probably over ten years, but it could go faster.”
Google and Facebook also have complex relationships with cryptocurrencies.
According to Cointelegraph, even though Google banned cryptocurrency ads, it owns a handful of companies that rely heavily on the use of cryptocurrencies, like Storj, which runs on the company’s native SJCX cryptocurrency, or Veem, which uses Bitcoin for its payments.
Meanwhile, in a post from January 4 of this year, Facebook founder Mark Zuckerberg wrote of cryptocurrencies as a promising counter balance to an increasing centralization of power among technology behemoths:
“There are important counter-trends to [centralization] — like encryption and cryptocurrency — that take power from centralized systems and put it back into people’s hands. But they come with the risk of being harder to control. I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services.”
Google Will Ban Cryptocurrency Ads
March 14, 2018Today, Google updated its list of banned advertising content to include “cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice).”
This comes as Facebook made the same decision at the end of January. While Facebook’s prohibition of cryptocurrency-related ads came into effect immediately, the Google ban will not begin until this June.
The value of Bitcoin dropped by 9.1 percent in the wake of this news. Critics contend that this overarching ban may hurt the legitimate use of cryptocurrencies, while crypto detractors are pleased that cryptocurrency fraud will soon be significantly restricted.
In June, Google will also prohibit ads related to Binary options, a type of financial contract that promises either a fixed amount of compensation or nothing at all.
John Oliver Preaches Caution and Responsibility On Cryptocurrency
March 12, 2018HBO Talk Show host John Oliver showed restraint while taking down cryptocurrencies Sunday night. Although he criticized alleged ponzi schemes like Bitconnect and poked fun at the absurdity of EOS’s valuation, his overall message was to approach the technology with caution.
Bitconnect was an easy target now that the company has shut down and a judge has issued an order for their assets to be frozen.
Oliver appeared to be talking to the masses who could fall victim to an otherwise obvious scam simply due to their own fear of missing out.
What do you think?
