2018-11-28 04:31 |
EOS Black crashes 80% in 4 hours, claims of exit scam pop up
EOS Black, a blockchain-based venture capital fund built on top of the EOS blockchain, has been caught in some strong controversy lately.
Just a few days ago, the currency managed to drop more than 80% in just under 4 hours, moments after experiencing a strong price breakout. A Twitter user @rektkid_ first shone a light on the event and offered a deeper insight into what exactly caused this drop.
Calling EOS Black a project with a “$400m market cap with absolutely nothing to show”, this Twitter user pointed out another interesting thing. Apparently several people went into EOSPrice telegram and started spreading rumors how a pump and dump group is going to explode the price from $0.25 to $0.5. This tricked “gullible speculators” who started taking positions in BLACK tokens expecting this rise. The price was pumped up just above $0.41 before the dumping took place, likely screwing over those who expected the pump to last even longer. The drop which ensued was pretty brutal, smashing through the previous $0.25 levels and bottoming out at $0.6.
The user later on reported that this drop might have been caused by EOS Black early investors exit scamming from the project. Tracking down the sell transactions that caused the drop, rektkid found that a large quantity of dumped tokens ended up being sold on a Korean exchange called Cashierest. His final contribution was to reveal the addresses that sold the most BLACK tokens during this drop.
For their part, EOS Black came out with a rather flimsy explanation. Their full response was as follows:
“Hi. The eosBLACK team.
The reason for the recent price decline was attributed to the release of a large amount of money in a short period of time due to incitement by malicious rumors (Chirashi) distributed to the initial investors.
There was never any developer dumping inside the company, and once again, the transaction in the eosblackteam account that comes up with capture is the amount paid to the initial investor I mentioned earlier.
If there is an investor who wants to explain directly from the person in charge of the company, this is also possible, so please visit after the appointment.
I am saddened by the investment loss caused by a sudden drop in prices. In our eosblackteam, we promise to do our best to develop according to the road map that we have released to the investors since then and will try to recover the token price.”
And while the controversy stays looming above the project, the price doesn’t seems to care that much as EOS Black recovered 23% of its USD value on the daily at the moment of writing.
Tether reopens account verification and direct redemption of fiat from its platformIn an announcement titled as noted above, Tether launched its redesigned customer verification/direct redemption of Tether to fiat features.
The old redemption model which operated directly through Tether’s native platform has been halted previously, due to the platform’s inability to handle what they call an “unexpected rush” of new cryptocurrency traders during the previous year.
This model has been replaced with a new, “flexed” one, which will look to “harness the established infrastructure and security of Bitfinex,” a platform which was built with these increased volumes in mind. Those wishing to redeem their Tether to fiat could do so 1:1 via the Bitfinex link, with whom Tether has a long-lasting business to business relationship. Bitfinex’s capability to handle this process has been criticized in the past by some community members who weren’t able to exchange their USDT to USD.
However, after securing a partnership with Deltec bank, Tether has regained the required capacities to handle the verification/redeeming process themselves. Investors can now utilize the on-platform wallet for creating and redeeming, without having to rely on a third party.
The process has been redesigned to favor the professional investor audience, as all accounts will have new minimal issuance and redemption requirements equal to 100,000 USD and $100,000 USDT, respectively. Customers will apparently be limited to one USD fiat redemption per week.
24 ICO’s that raised $2.8 billion currently have almost no trading volumeA guest author on Cointelligence recently published a piece analyzing some of the most valuable ICO’s on the market and their overall appeal among traders. The conclusions he came to as a result of this analysis weren’t that encouraging.
Noting that many of these tokens have “significant” economic problems, the author, whose name is Andrew Tar, adds that the biggest one might be the lack of liquidity around them.
“Liquidity is a significant parameter for any financial asset and shows how fast the asset can be converted to cash. In other words, it represents how fast you can buy or sell some product,” explains the author. He suggests that some tokens have less than 1% of their total supply in circulation, with most token holders choosing to HODL rather than spend.
“… large transactions are disastrous for such markets. If someone wants to buy or sell a significant amount of tokens, the deal can shake the market. Under those circumstances, the person can actually become a monopolist, and the person is able to change the price. The owner of a large amount of tokens can manage the market and influence the project,” he further added. A weakness such as this one isn’t something you want to see on a healthy financial market.
He analyzed more than 20 projects that managed to collect over $50 million from their investors by launching an ICO. TaTaTu, Dragon, Hdac, Paragon, Bankera, Qash, Envion, PressOne, WAC, TenX, Dropil and others are on this list, with all of them suffering from the symptoms noted above. Check out the complete article here if you want to delve deeper into the full list of issues and problems that ICOs suffer from due to low trading activity.
NASDAQ to launch Bitcoin futures in 2019 despite the recent market downturnBloomberg reported today that Nasdaq Inc. will push through with its plan to list Bitcoin futures by the end of the first quarter of 2019, even with current market conditions being the way they are.
The second biggest stock exchange in the world is currently working on complying with the demands of the U.S.’s main swaps regulator, the Commodity Futures Trading Commission, before launching the mentioned futures. This isn’t the only entity looking to gain the CFTC favor at the moment, as a New York-based investment management firm VanEck is going through the compliance review process as well.
The futures will be competing against already present CME and Cboe contracts, which have been traded ever since December last year.
Nasdaq futures will be based off Bitcoin’s price on numerous spot exchanges, pooled together by VanEck Associates Corp., said Bloomberg’s source.
ICONLOOP launches “ICON Development Network” on Amazon Web Services marketplaceICONLOOP, a blockchain-specialized tech company from Seoul focused on being the “technical” part of the ICON project, revealed that its latest product, “ICON Development Network”, is now available on the Amazon Web Services marketplace.
The company has been a part of the AWS Partner Network since early 2018; with ICON Development Network, they are now able to provide a software solution that allows developers to run a private instance of the ICON blockchain through AWS.
“ICON Development Network platform will provide an easy-to-use development-ready environment. This enables developers to bootstrap their own private ICON Network, adapted to their own convenience and need, in order to build, test or validate their project running on top of the ICON Protocol,” explains the project’s official Medium announcement.
The solution is meant to “improve understanding, accessibility, and convenience” when building on the ICON Network and potential developers can check it out on the project’s official GitHub page.
The post Eos (EOS) spawns scam projects on its blockchain and they are starting to exit-scam appeared first on CaptainAltcoin.
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