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BitMEX Says Crypto IEOs Perform Poorly, Losses Up To 98%

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The initial exchange offerings (IEOs) are a popular topic in the latest cryptocurrency news lately. However, according to new stats and as BitMEX says, they have lost investors up to 98% of their money.

The stats are pulled from the latest report on the phenomenon published on December 23 where the analytics arm of the exchange BitMEX named BitMEX Research identified twelve major IEOs that launched this year. Even eleven of those are now almost worthless compared to the price at which they first traded on the exchanges.

“Relative to the first traded exchange price… the performance to date has been poor. Almost all the tokens are down over 80%,” the report summarized.

BitMEX says that there is a growing popularity of IEOs but their performance is poor. Against the price at which the organizers first offered the IEO tokens, the numbers fare slightly better. Even four IEOs have delivered returns to investors and their performance varied between 7.9% and 490%.

The 490% figure actually belongs to Matic, which launched on Binance and which was easily the winning punt of the cohort. Even against this exchange price, Matic is still up by 255% and despite the mixed opinions about its provenance in the recent weeks.

As we previously reported in the altcoin news and rumors, a sudden 60% drop in the token’s value was what followed – and the unusual market activity progressed. At the time, the creators behind Matic denied any foul play with the CEO of Binance, Changpeng Zhao issuing a statement supporting their innocence.

BitMEX says that Matic is an exception to the nightmarish situation that many IEO investors otherwise find themselves in. “This volatile token has appreciated in value since it listed,” the report said.

What’s also important to know is that IEOs differ from initial coin offerings (ICOs) in that an exchange directly lists its tokens via its own dedicated launchpad. The fundraising tool has come in for criticism since the first projects launched with the doubts now centering around the ability of this sector to gain long-term credibility.

Currently, the market is at a new total of $197 billion and rising as we speak. Bitcoin’s dominance is at 68.9% right now.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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Crypto Exchange OKEx Tackles Small Balances With New Offering

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The popular crypto exchange OKEx recently announced a new feature that allows its users to convert small balances to the firm's proprietary token OKB. As OKEx announced on April 7, the new product will allow its users to convert all the crypto asset balances worth less than 0.001 Bitcoin (BTC) which is $7.38 at press time into OKB. The upper limit for conversion value is 0.01 BTC ($73.84 at press time) and there is no limit on conversion time but the conversion will be only available when the price fluctuates within 5%. Recently, a trader told the media that this small balance handling is an important feature for long-term traders because it prevents users from wasting resources when trading different assets. He said that small balances are a big issue on crypto exchanges since they are funds that cannot be used” to trade. The latest Binance news show that there is a similar feature letting users convert small balances (often called dust) into the proprietary token Binance Coin (BNB). When the feature first launched in late April 2018, the co-founder of Binance and CEO Changpeng Zhao joked on Twitter, “I hear the team has built a broom, who wants it?” In a February 16 blog post, the crypto exchange OKEx explained some of the advantages that OKB holders have on its exchange, stating:
“There is only one trading fee discount program for OKB holders on OKEx, in which users only need to hold 500 OKBs to enjoy fee discounts. To receive the maximum discount, users only need to hold a maximum of 2000 OKBs.”
The CEO of OKEx, Jay Hao, urged traders to avoid speculating on OKB and stated that "A principle that I recommend all our users stick to is that if you do not fully believe in the long term growth of OKEx, then please do not trade OKB.” Over the past year, the crypto exchange OKEx was in the cryptonews a lot and grew a lot within the cryptocurrency ecosystem. As the media reported at the end of March, OKEx recently became the world's top Bitcoin Futures exchange by daily trading volume, overtaking the industry veteran BitMEX. According to Hao, the competitors of OKEx are probably not appreciating the growth of his platform - earlier this year, the blamed them for denial of service attacks against the exchange.
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MonaCoin’s Comparative Performance Is Better Than Ethereum’s

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MonaCoin’s comparative performance turns out to be better than Ethereum and bitcoin. The First Japanese cryptocurrency Monacoin (MONA) is based on the ASCII character and one single entity doesn’t control the entire Monacoin payment system but is sustained by everyone who uses it through the client apps that run on the computers. Most of the cryptocurrencies are considered to be meant for speculative purposes but Monacoin is famous because it is taken care of by the community base and not by the development team of the project. The Monacoin users purchased a few types of Mona based web apps and services as well. As per the technical details:
 “Technical Details, Algorithm: Lyra2RE(v2), Block time: 1.5 minutes, Block reward: 25 MONA, 105,120,000 total coins, Subsidy halves every 1051k blocks (~3 years), Difficulty re-target: every block (Dark Gravity Wave v3), not pre-mined.”
Crypto analytics and crypto enthusiast Ayobami Abiola tweeted:
“Irrespective of the market capitalization trends, Monacoin (MONA) enjoys a better user base in Japan, probably because it is native to Japan.”
The decentralization of the proof of work algorithm helps users to mine the monacoin. This fights against the centralization or large miners and also reduces the volatility of the prices. Because of the ASIC resistance, the coins are distributed fairly and this prevents users to mine the coins based on their high processing power. This is why it turns out that Monacoin’s comparative performance is better than Bitcoin and Etheruem. The use cases and adoption are recognized by multiple sources since several merchants in Japan transact with the help of the coin. The supply of Monacoin is higher when compared to bitcoin and it facilitates the long-term investment potential. The peer-to-peer payments are accepted using Mona coins and the transaction costs are also lower. The mass adoption from the gaming community will also increase the Monacoin value. There is no other cryptocurrency that has country-wide support such as Mona. There are also Mona wallets that are open source, paper and hardware, Multisig and cold storage to store the coins. there is also an official wallet as well. The Monacoin based applications also provide multiple advantages such as fast transaction processing and widespread adoption.
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Crackdown On ICO: 11 Lawsuits Filed Against Crypto Firms

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A crackdown on ICO cryptocurrency has been unleashed upon various digital asset companies and exchanges. Roche Cyrulnik Freedman filed lawsuits for three plaintiffs in the Southern District of New York and all of them claim that platforms such as Bibox, Tron, Binance, Bitmex, and Block.one sold unregistered securities to retail investors. Let’s find out more about it in the ICO cryptocurrency news. The law firm Roche Cyrulnik Freedman has filled its hands with work as the attorneys have multiple high profile lawsuits for companies in the crypto industry. The publication Bloomberg Law called the law firm as ‘’litigation boutique’’ that specializes in crypto cases. The law firm was involved in the trillion-dollar lawsuit against Tether Limited and the Kleiman v. Wright court case. The case against proclaimed bitcoin creator Craig Wright exceeded $5.1 billion USD worth of Bitcoin before the punitive damages. The class-action lawsuit filings were started by the defendants Eric Lee, Chase Williams, and Alexander Clifford. The filings were found by offshore news Offshore alert which considers itself as an offshore financial center expert. Crypto platforms that were sued include Quantstamp, KuCoin, BitMEX, Bprotocol, Block.one, Status and Binance. The developers such as Dan Larimer, Vinny Lingham, Arthur Hayes, and Changpeng Zhao, are all mentioned in each court filing. The lawsuits mentioned the allegation of unlicensed activity and the sale of unregistered securities through ICO cryptocurrency offerings or IEOs. The plaintiff Chase Williams’ lawsuit against Binance and founder Changpeng Zhao, says that Binance sold unregistered securities as digital tokens including BNT, EOS, TRX, FUN, LEND, CVC, QSP, SNT. All of the lawsuits were filled with the Southern District of New York at the start of the month. The 42 defendants named in the lawsuits involve individuals from South Africa, Taiwan, China, US, Japan, Singapore, Hong Kong, British Virgin Islands, and the Cayman Islands. The plaintiffs and the law firm will have a hard time with the crackdown on ICO because of the jurisdictions. There’s also not a single government standard or conclusion towards the unregistered securities. The accusation against the Tron Foundation noted:
‘’The creation of TRX tokens thus occurred through a centralized process, in contrast to Bitcoin and Ethereum. This, however, would not have been apparent at issuance to a reasonable investor. Rather, it was only after the passage of time and disclosure of additional information about the issuer’s intent, the process of management, and success in allowing decentralization to arise that a reasonable purchaser could know that he or she had acquired security. Purchasers were thereby misled into believing that TRX was something other than a security when it was a security.’’
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Crypto Fundraising And M&A Took A Dive In 2019: PwC Report

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A new report by the leading auditing company PwC shows that crypto fundraising was one of the industries which took a dive last year. It appears that both M&A and funding deal flow in the industry dropped, according to the report released today by PwC Global. On the M&A side, the crypto native acquirers took 58% of the deal flow, compared to the 42% in 2018. The cryptonews also show that the total number of M&A deals dropped from 189 in 2018 to 114 in 2019, while the overall value of these deals dropped by 79% from $1.9 billion to $451 million. Crypto fundraising was another sector that saw drops. Larger companies were basically able to eat up the ones that provided services that were ancillary to their own. This is what the PwC Global crypto lead Henri Arslanian told the media in an interview. As he said:
“I think we should expect some of the big players to get bigger, but not by buying direct competitors. Not by becoming vertically bigger but by becoming horizontally bigger. Unicorns are becoming more like octopuses where they have their hands in various areas of the crypto ecosystem.”
Meanwhile, the declines in crypto fundraising were not quite as stark. The post-seed rounds took up 8% more of overall fundraising deals in 2019, which is a clear sign of how the sector matured.
“I think that’s something we should expect to see as well, as the industry matures, there will be enough deal flow and there will be enough exits as well to allow many of the crypto VCs to be successful,” Arslanian said.
However, the Bitcoin and altcoin news still show that crypto fundraising decreased by 40% overall - going to $2.24 billion and the number of deals dropped to 122. Equity fundraising decreased by less, showing a 18% drop. The rise of Bitcoin in the second and third quarter of 2019 did not stave off the funding drop. As such, the industry should assume going into 2020 with the thought that the global economic downturn will further affect funding deals.
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