The SEC has issued over 80 subpoenas to various companies, which recently issued ICOs, including retail giant Overstock in regards to its TZERO coin.
Although Overstock.com Inc. shares fell 4.4% on the announcement, Bitcoin rapidly regained the 2% drop it initially suffered, to trade steadily above $11,000 at the time of this writing.
Since the incredible run up of Bitcoin in Fall 2017 — and the millions of dollars that have been stolen in exit scams, the SEC has been hinting that it would be following up on the risks that ICOs pose to investors in the crytocurrency markets and the wider economy.
Circle, a peer-to-peer payments technology company founded in 2013, has officially announced it’s acquisition of Poloniex, a popular cryptocurrency exchange.
Poloniex is the 18th largest cryptocurrency exchange by trade, according to CoinMarketCap.com.
Circle already services plenty of big money “whales” in the cryptocurrency market through its Circle Trade offering, which provides over-the-counter transactions with minimums of $250,000 USD.
Circle also provides the Circle Pay app, a direct competitor to Paypal’s Venmo, which lets users send money with via text message.
So, this foray into servicing small crypto-traders seems like a natural evolution.
Except that Circle’s apparently been there before…
Up until late 2016, Circle Pay also operated as a bitcoin wallet service to buy and sell bitcoins. (See: https://en.wikipedia.org/wiki/Circle_(company)#cite_note-11 ; https://blog.circle.com/2016/12/06/spark-new-markets-app-messaging-and-bitcoin-changes/)
Apparently, Circle has decided to pivot — again — and the decision is making big waves, especially considering that Goldman Sachs is a major investor in the financial startup.
Yes, the same Goldman Sachs that, in 2017, said there was “no need for cryptocurrency” — and then was rumored to have plans to open a crypto trading desk in 2018 — and then denied it just a few weeks ago.
This move gets Goldman Sach’s skin solidly in the game… like it or not.
Things do change mighty fast in the crypto sphere!
Rumors about Tether (USDT) has again started to swirl last week, following articles from several news outlets that Bintfinex and Tether had been issued a subpoena by the United States Commodity Futures Trading Commission (CFTC).
It was later disclosed that the subpoena was actually issued on December 6, 2018 and, according to Bitcoin.com, “approximately 34.5% of all USDT created were produced after Tether had received the subpoena from the CFTC.”
Although some have their doubts as to whether USDT has propped up bitcoin and other cryptos, several experts expressed views in favor of the USDT coin and its role in creating transparency in the market. To them, the fact that the Tether is still operating 2 months later, is a clear and positive signal.
Another day, another banker slamming cryptocurrency as a “fraud.” First it was Jamie Dimon of JP Morgan (although he came to regret that), now it’s Agustin Carstens.
Carstens, the head of the Bank for International Settlements (BIS) slammed bitcoin as “a combination of a bubble, a Ponzi scheme and environmental disaster.” The latter we suppose because of the energy consumption needed to mine it.
Funny… similar words could be used to describe the many financial crises directly caused by banks — most recently in 2008.