Category: Financial News

In this category, Latest Financial News visitors can find everything that Traders-Paradise finds it is related to the educational material existing here. As the name suggests it is news but ONLY related to Traders-Paradise’s tutorials, courses, guides about trading, and investing.

Here the readers can find posts and articles about recession and how to overcome it. Many trading or investing strategies are explained here. For example, why to use open interest strategy when investing, or growth stock investing strategy.
Here, our experts and journalist are taking examples from the real-life. it is usually breaking news, and use them to explain what is the best solution for traders and investors over a given time or related to the particular event.
Also in Latest Financial News readers can find an explanation of, for example, ratios useful to measure the particular market conditions.

Also, Traders-Paradise gives you some clues on how to react to changes in the markets, no matter if it is the stock market, the Forex market, or any other.
The main aim of the Latest Financial Market News is to connect the real events with the theory. Traders-Paradise uses real-life examples to explain the theoretical rules of investing and trading.
Also, when some breaking out news appear Traders-paradise will write about it but at the same time, the visitors will have a comprehensive analysis of what caused that event and how to overcome it.
Traders-Paradise hopes that this category will be very useful for its visitors and that they will find it helpful.

Initiative Q – What is It?
3 min read
- Initiative Q has adopted some of the worst elements of scammy altcoins
If you google Initiative Q and head to its website, you will find a giant page posture “tomorrow’s payment network”.

Social media’s got itself a new trend, it asks you to sign up to a new financial network called Initiative Q.

To attract signups, Initiative Q is using pyramid-style recruiting, aggressive social marketing. And it’s working: The project has been public since early summer, Google searches for “Initiative Q” have exploded since October 14.

You may have already been addressed by friends on Facebook or Twitter. And they told you there are only a limited amount of invites to join in on the next crypto, future bitcoin, that will potentially get you rich quickly. Despite that great interest, there is a concern that the operation might be a scam.

Initiative Q is a project led by veteran payments entrepreneur Saar Wilf, who contributed technology to Paypal, and George Mason University economics professor Lawrence H. White. They want to launch a digital currency but they’re very noisy about the fact that it’s not a cryptocurrency.

Initiative Q says it will be “tomorrow’s payment network.”

Wilf has started a viral social media campaign with this:

“Interested in a free $130,000 lottery ticket, which I estimate has a better than 1% chance to win?”

And below

It is evident they need to encourage mass adoption if they want success.

But, let’s put aside absurd and arrogant claims of their made-up “currency” being worth $2 trillion USD in the future. For now, they have a nice landing page. Anything can go in the world of marketing. But there are some reasonable questions we have to ask.

How could free units of a new digital currency end up being worth thousands or billions of dollars?

This is where things get interesting.

If you read through Initiative Q’s website and try to find how they got to their absurd $40,000 airdrop value you will find a long description, but here’s the summary of how they got there:

As you can see Initiative Q is different as it doesn’t ask you to invest any money. The free offering promises to collect a better financial reward if you secure one of the free slots. That means there should be no financial risk to you to join.

They are offering to set up a new payment network utilizing the very newest technology and then run a private currency ‘Q’ on that network, with a base of 2 trillion Q, which will be worth $1 per Q. This may make you think of a pyramid or Ponzi scheme, whereby a scammer will trick new investors, but no money has changed hands. Yet.

That, however, doesn’t change the fact that Initiative Q is in our opinion, a really bad idea. Initiative Q has adopted some of the worst elements of scammy altcoins, without even small simulations of technological innovation. It’s connected in general with risks.

Why does it look like a scam?

It’s premised on the hype

Initiative Q most resembles a crypto scam while active promoting of FOMO, or Fear of Missing Out. Its own marketing materials compare it to “getting free bitcoin seven years ago.”

Promoters spin estimates of the currency’s future value and they’ve built their marketing on “the earlier you join, the higher your reward.”

This rhetoric is created to attract the naive audience, and get them caught up in the excitement of easy money earning. Take a look at their Facebook profile. It also doesn’t seem like a coincidence that Initiative Q sounds like QAnon. It is a dangerous viral conspiracy theory that has taken over certain corners of social media in the past few years.

Let’s say, prop up scammers.

It’s not anonymous

Initiative Q is pointing out that they’re not selling anything. They’re just asking for your name and email address. They just want to keep you in the loop when the currency is launched. But, this trove of names and emails is a giant tank for hackers at the same time. A list of people interested in get-rich-quick schemes that could be extremely lucrative for more opened scammers. Where is the anonymity? The essence of crypto, P2P and blockchain!

Initiative Q seems to have missed the core source of the cryptocurrency enthusiasm they’re trying to use to leverage their really weird non-crypto. Data is valuable, and advertising companies will gladly pay heaps of money for access to good lists. Yes, they say in their privacy policy that they don’t sell our data! So does Facebook. That didn’t stop Cambridge Analytica from scraping illicit data and using it to advertise during the US 2016 election. If Initiative Q is sold to another company, they have every right to change the privacy policy. There’s no guarantee that your data is private. If there is no possibility of anonymous digital transactions what they are looking for in the world of crypto? Without the possibility of anonymous digital transactions, nobody would give a damn about cryptocurrency.

It has no technology

Initiative Q doesn’t have anything as yet, except the notion of ‘build a payment network and it’ll be awesome. Frankly, many of the things Q is promising to build already exist in the form of Apple Pay, Google Pay, AI fraud prevention, and smart card systems. What’s new? It looks like another payment app, just another payment processor. It’s utterly unclear what unsolved problem Q is meant to address. Keyword ‘unclear’! Fog! They have no idea but they want you to sign up. Smart! The most interesting thing about Initiative Q is its creators’ decision to pitch it as “sort of like a cryptocurrency, but definitely not a cryptocurrency.” So, what it is?

They have no product. Most ICOs or cryptocurrencies will explain how they plan to build their network. They ’ll draw up a whitepaper, going deep into the technical details.

What about Initiative Q? Nothing! No product, no details, no descriptions. There are some indications, signs but all unclear and obscured.

There’s an endless well of frustrated greed in the world. For a while, cryptocurrency was the vehicle and object for that greed. What Initiative Q’s creators seem to have missed is that there’s a lot more to it than that. Greed isn’t the main subject.

Its marketing is scary

Initiative Q’s authors have presented their plans to the world with all the aspects of a scam. Where’s the evidence for this?

Here! You can only join Initiative Q if you’re recruited, and each new joiner gets five invites to send out to friends. Recruiting others rewards you with more Q currency in the future. OK, there is no buy-in price, but that’s literally a pyramid scheme.

Initiative Q has been aggressive in using barrel-scraping content marketing tactics like MLM. But, unlike the MLM businesses, Initiative Q isn’t asking you to buy anything. They’re just making incredible promises about the value of the free coins they’re handing out.

Our concern is that when “get rich quick” schemes like this go viral on social media, they rust the image of cryptocurrency. They can cause confusion among the general audience. Even if Initiative Q does work out as a new system of payment, their marketing has been misleading. That “by invite, only” system for early adoption makes a false sense of exclusivity. At the same time, it can encourage people to spam their social media feeds with the Initiative Q saga.

Initiative Q is centralized

Initiative Q is a digital currency that’s not blockchain-based. According to creators, it is a payment network with a smartphone app, instant payments, and better fraud prevention than credit card companies. In fact, it links its fraud prevention specifically to the idea that it’s centralized.

They are establishing “patterns of appropriate and inappropriate behavior,” and Initiative Q will build “more reliable fraud assessment.”

What does it mean?

It is just an enhanced version of what banks and credit cards do. And that’s exactly the problem: Q isn’t an actual innovation. Initiative Q creators really just want to build a centralized payment network. And they want to take their piece of cake.

Q will be a private currency and you won’t control the money you receive. The network could shut down, the admins could move your money into someone else’s account. There is no guarantee the Q would avoid legal intervention that destroyed earlier centralized digital currencies.

Should you sign up to Initiative Q?

We won’t tell you what to do with your money. But be very cautious when it comes to Initiative Q and online promises of quick wealth.

It’s possible that Initiative Q is not a scam. It’s possible that they’re just a company orchestrating a brilliant viral marketing campaign. Nothing is wrong with that. PayPal, CashApp, Payoneer, offer referral programs to attract new users.

So, where the problem lies? There are so many ways to make money, especially in the crypto area. People are wasting their time on gambles like this.

Initiative Q’s affiliates promote this possible scam instead to do something that’s actually profitable. True wealth never comes by waiting for random internet companies to hand deliver you $40,000.

Risk Disclosure (read carefully!)
7th November 2018
Ripple Cryptocurrency – latest review
2 min read
- What is the future of the Ripple cryptocurrency?
First of all, it should be explained that Ripple is not a cryptocurrency in the usual sense of the word. In fact, this is a settlement system that has become a faster, more transparent and secure alternative to the existing ones. For example, the SWIFT system used by banks. Ripple cryptocurrency is a combination of currency exchange and a money transaction company.

XRP, the so-called Ripple coins is used to facilitate transfers in different currencies. In existing settlement systems, the basis for the conversion is usually US dollar. That process is associated with additional costs and lasts for a long time and bank transfers between countries, often last up to 3 days.

Converting payments to XRP instead of dollars, the system saves inventory costs, and transaction processing takes a few seconds.

XPR token

XRP is a token used for representing the transfer of value across the Ripple Network. The main purpose of XRP is to be a mediator for other – both cryptocurrencies and fiat – exchanges. The best way to describe XRP is ‘Joker’. Not the creepy Batman enemy, but the card that can be any other card. If you want to exchange dollars to the euro, it can be dollar with dollars and euro with euros to minimize the commission. As highlighted above, the transaction cost on Ripple is $0.00001.

After the transaction, the amount of $0.00001 ‘disappears’ from the platform and can’t be replenished. With every transaction, the world becomes $0.00001 poorer. It is designed that way to prevent spammers attacks.

Basically, Ripple wanted to be a cryptocurrency built for enterprise and banking use. It wanted to enable fast cross-border payments, low transaction fees. And all of the other benefits of digital currencies. Most importantly, it wanted to do this with the goal of targeting enterprise and banks. The two groups that require extended features you won’t find on cryptocurrencies like bitcoin or Ethereum.

How Ripple cryptocurrency works

Ripple is a system that enables the execution of transactions by binding banks, digital exchanges and corporations in order to be able to send and receive money worldwide. The basic idea is to replace old principles like SWIFT. Ripple has licensed its blockchain technology to many banks. Furthermore, there is a lack of complete anonymity that most people value in cryptocurrencies. Relationship with the “enemy” i.e. the banks, rejects many. But what is most important is that Ripple is doing great on the market and that this connection with banks can even represent a measure of security.

Ripple: an exciting, feature-rich network

To understand Ripple’s place in the crypto universe, we have to value its contributions to the industry. In addition to being one of the most renowned digital tokens, it is also one of the most efficient payment networks for financial transactions on the planet.

The Ripple technology is, in fact, more widely known for its digital payment protocol. Then for being a cryptocurrency. The XRP (Ripple) is the associated cryptocurrency of the platform. It performs the part of a bridge currency to other tokens without discriminating between fiat and crypto, facilitating exchanges between different coins. The Ripple cryptocurrency; the XRP, has the power of liquidity by serving as a bridge between other means of payment, making the exchange more comfortable for all parties involved in a transaction.

Ripple is an official organization with the trust of many banks. It’s not another Blockchain startup from a no-name company.
No inflation. All the tokens are initially mined and already exist. The more banks use it as their transaction platform, the higher the value of XRP.

What is the future of the Ripple cryptocurrency?

Predicting a cryptocurrency course now becomes something really in trend. Lot’s of public places spot their thoughts, trying to guess what would happen next. And among the cryptos, nothing is taken into such consideration as Ripple.

Ripple still has some growing room left, but meteoric rises like seen at the end of 2017 will naturally be few and far between, and it’s safe to assume that the price changes will settle into more sustainable ranges. This is especially likely for a cryptocurrency like Ripple which can benefit from price stability.

They have a large supply

With its large supply and currently limited use, investors will want to be wary of readjustments following price rises. This is especially true for a coin like Ripple. It benefits from stable pricing and is designed more for corporate use than individual use.
Although there is a long list of very respectable banks that are planning to use Ripple. According to the Financial Times, most of them are still on the testing stage. The few who transact real money use the platform but not the token. So, perhaps banks “are not that into Ripple”.

Why is Ripple criticized?

However, there are some cons. Ripple cryptocurrency is highly centralized. The whole idea of cryptocurrency is to avoid centralized control. As the tokens are already mined, the Ripple developers can decide when and how much to release, or not to release. So, it is basically like investing in a bank.

In addition to centralization, today it is pretty much a monopoly as Ripple Labs owns 61 percent of the coins.
Yes, it is open source and very smart. But still, once the code is accessible there is a good chance many people will try to hack it. Some of them even might succeed.

And it can freeze your transactions.

The biggest example of this is when Jed McCaleb, founder of Ripple Labs, tried to sell more than a million dollars worth of Ripple. The transaction was reversed. There are rumors that McCaleb breached the contract. But even then, the very possibility of freezing a transaction is against basic cryptocurrency principles.

Samson Williams, CSO of Ireland-based fin-tech firm SeedUps said.

“Though not a cryptocurrency at all, it is the child of banks. So it’ll get the natural bump from the 2018 Recession.”

The bottom line:

Ripple/XRP still has room for growth. They have an impressive list of partners. It looks like many people have a vested interest in seeing Ripple succeed.

Is Ripple able to pull off its goal of being the preferred money transfer system for banks across the world? If the answer is YES, then we can see Ripple at least maintaining its position as the third most valuable cryptocurrency.

Risk Disclosure (read carefully!)
6th November 2018
Anniversary to Bitcoin – Ten Years After
2 min read
- The first known transactions were in May 2010 for 10,000 Bitcoins
- Ten years ago today, Bitcoin was born. Today October 31, 2018, marks the 10th Anniversary of Bitcoin. One of the most promising. But still widely misunderstood technological spread of the 21st century: Bitcoin.
“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party” Satoshi Nakamoto, Oct. 31, 2008, 06:10:00 PM.

That’s the introductory line in the first email that Satoshi Nakamoto sent. This may be a pseudonym for one or more programmers of Bitcoin. This pseudonym sent a mysterious cryptography email list.

It was Halloween 2008. Satoshi Nakamoto published a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” He detailed how the system would mean online payments being sent directly between people. Without having to rely on a bank.

Did he, she or they had any feeling of what was being unleashed? Today, ten years after, the digital currency is valued at more than $6,250. Even with the wild fluctuations of the past year.

Since the first Bitcoins were sold privately, it’s not clear how to assign an original value.

The first known transactions were in May 2010 for 10,000 Bitcoins to indirectly buy two pizzas for about $30. Or less than a cent for each Bitcoin.

After 10 years on the 10th bitcoin anniversary, the size of the cryptocurrency market is estimated at more than $200 billion.
The mysterious Satoshi Nakamoto appeared out of nowhere. He invented a new form of currency that is 100% digital. Not under the control of any government or bank on earth.

And it is worth billions and billions of dollars.

Then he or she or they unexpected vanished.

Weird but true. Even bizarre!

The story is even more fascinating because Satoshi mined the first bitcoins. At the beginning when it was simple to mine Bitcoins quickly and easily. There is some estimate that Satoshi owns approximately 1 million Bitcoins.

A decade after, who uses it to trade? And why is Bitcoin itself which started trading at 30 cents apiece, nowadays costs thousands of dollars?

Bitcoin means freedom

With Bitcoin people get the liberty to exchange value without intermediaries. That leads to greater control of funds and lower fees. It’s faster, cheaper, more secure and immutable. So, cash is under control by banks while bitcoin has owners.

Bitcoin is very useful as service for fast remittances for the international system of payments, for example. Bitcoin can help us do online shopping too. It’s like an e-wallet which can be created blockchain technology to store, track and spend digital money.

Bitcoin’s influence on the finance industry

Bitcoin is making the biggest revolution in the finance industry in the last 200 years. Leading all cryptocurrencies, Bitcoin is at the forefront of the bleeding edge of blockchain innovation.

Bitcoin is celebrating 10 years anniversary. Over the past decade bitcoin’s popularity has soared. But so has the number of its critics. But, the market found the weakness: volatility of Bitcoin. The trading community lap up the wild price swings. Those pushing for mainstream use have had to withstand a collapse in the price of the No. 1 digital currency.

The future of bitcoin

One of the most vocal critics is prominent New York University economics professor, Nouriel Roubini, compared blockchain with a glorified excel spreadsheet. Roubini has called bitcoin ”the mother of all bubbles.” He criticized the crypto community as a bunch of “self-serving white men”. Claiming they are ”pretending to be messiahs for the world’s impoverished, marginalized, and unbanked masses.”

And now, coming upon 10 years since the inception of cryptocurrencies? The decentralizing technology began with bitcoin. It started a path where the so-called trusted third parties are mining bitcoin. Instead of printing money.

“I see bitcoin becoming the most important and most transacted currency in the world, not just for remittances, or cross-border transactions, but for every use currency. It won’t be long before bitcoin eclipses the dollar as the most popular currency,” said Tim Draper, founder and director of Draper Associates.

We think it is necessary to stay patient and witness history first hand.

Nothing can stop that!

Risk Disclosure (read carefully!)
31st October 2018
Thailand SEC Warns On ICOs
1 min read
- The SEC of Thailand released a report about the legality of certain initial coin offerings (ICOs) and other cryptocurrencies.
- SEC warned that some of them have not met regulatory standards and may put investors at risk.
Thailand has slowly warmed to cryptocurrencies from the beginning of this year. Initially, the government intended to impose crippling taxes on buying and trading them. And ban ICOs which would have been the end of the developing industry in the Kingdom.

Thailand SEC warns on ICOs

The Securities and Exchange Commission of Thailand developed a regulatory framework. The ICO projects have to apply for approval to operate within the country. As reported by the Bangkok Post over the weekend, those outside of that group, have been on the end of a warning. Because they are without prior SEC approval.

Reasons for warning

Apart from the fact that the nine ICOs have not sought approval, there are several other reasons for Thailand SEC to warns on ICOs. These ICOs have not been evaluated by any SEC-approved ICO portal. They have not provided enough disclosure for investors. Moreover, the issuers and promoters didn’t have the license to carry out digital asset-related activities.

An inspection has found that unregulated ICOs had promotions on social media in Thailand. Hence, that set off red flags for the Thai SEC. They identified nine cryptocurrencies and ICOs in total. These include Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO, and Kidstocurrency ICO according to the report.

They do not have permission

After all, the regulator warned against investing in them since they have not been approved. Overmore, they don’t meet the necessary qualifications and have not had their smart contracts assessed by ICO portals.
Securities and Exchange Commission went on to add:

‘Information disclosure for investment decision-making is also inadequate, while these digital assets might not have sufficient liquidity to trade and cannot be converted into cash.’

The Monetary Authority confirmed this caution. Furthermore, they are warning that one particular crypto is in online media from other countries. They stated it is OneCoin and businesses related to it are not under supervision. The organization, widely believed to be a Ponzi scheme, has received scrutiny online. And they were operating as a “private blockchain”. Some see it as little more than a scheme. Especially after countries like China, India, and Italy issue warnings about OneCoin.

‘There are opportunists who persuade individuals to invest in digital assets by assuring investment returns generated from digital tokens that are structured like pyramid schemes. These schemes encourage individuals to seek more partners in the investment network. But there are no details available on business plans, product, platform or credible management team,’ the SEC added.

Who is looking for the license?

Currently, six businesses are seeking licenses to operate as crypto exchanges in Thailand. And these are Bitcoin Co, Bitkub Online Co Ltd, Cash2Coins Co Ltd, Satang Corporation Co Ltd, Coin Asset Co Ltd, and Southeast Asia Digital Exchange Co Ltd.

On Friday, the Thai SEC warned the public against nine ICOs that have not applied for approval. But has been attempting to promote and solicit investors on social media platforms. Probably Facebook and YouTube.

Later, the SEC warned prospective investors stating, ‘Currently, no digital asset issuer has been approved. And no one has filed an application for a license with the SEC. Therefore, investors to take caution when being solicited or receiving information about investments in digital assets.’

Additionally, there are two seeking to open as digital asset dealers. It looks, they are Coins TH Co and Digital Coin Co Ltd.

The SEC is still evaluating their applications and those companies can continue operating for now. Yes, Thailand has opened up to crypto. But they clearly have zero tolerance for those that do not abide by the rules laid down by the SEC.

It looks that this new financial instrument doesn’t fit under any one regulatory body, and confuses many regulatory bodies.

But well, they have time to learn.

Risk Disclosure (read carefully!)
29th October 2018
NEW GREEN ENERGY INVESTMENT TRUST TO FLOAT PROFFERING A HIGH DIVIDEND

This article was originally posted on https://www.markemlickprivateequity.com/

Boutique asset manager Gresham House is seeking to list a trust that will invest in battery farms to store renewable energy for use by the National Grid.

Gresham House has become the latest in a growing line-up of asset management firms looking to launch new investment trusts. Their aim is to raise £200 million from investors for the ‘Gresham House Energy Storage Fund Plc’, for which £30 million is already promised by a range of cornerstone investors including Gresham House itself, staff and institutional investors.

The new trust will invest in lithium-ion battery farms, to provide the National Grid with utility-scale Energy Storage Systems or ESS, to help ensure energy from renewable sources is available when it is needed, rather than when having to rely on the availability of wind, waves or sun, depending on the renewable source used.

The infrastructure the trust will be investing in is essential to support the deployment of renewable sources of energy, which already accounts for 30% of the UK’s energy needs or 40GW. It is forecast to grow by an additional 50% by 2023.

The managers of the new trust claim it will offer investors a diversified and robust source of income, yielding 7% once fully invested, and it will be independent of renewables subsidies or the absolute level of power prices.

The trust will target a NAV total return of 8.0%+ p.a. (net of all Fund expenses). Once gross proceeds have been fully deployed, the manager expects to introduce leverage up to a maximum of 50%. Gearing, coupled with the expected asset management and revenue improvements, will increase the NAV total return target to 15.0% p.a. calculated net of the Fund’s costs and expenses.

As yet the fees for managing the trust are, unusually, unconfirmed.

Future growth

This forecast growth in energy generated from intermittent renewable sources creates a challenge for the National Grid because it increases the variability of power supply. ESS addresses this challenge by either storing power for future use or releasing power when required. The transition to renewables can only continue with the support of effective ESS.

Gresham House claims the trust will be managed by an experienced management team who have worked together for over 10 years, with strong renewable and energy storage experience.

They state that to date, the team has successfully worked on 28 solar projects with a total capacity of 290MW, and five energy storage projects with 70MW of capacity.

Describing the opportunity presented, Ben Guest, Head of Gresham House New Energy, said: “A change is coming in the nature of power in this country. We are determined to be part of this revolution that will contribute significantly towards a low carbon economy.

“The rise of renewables points to a major source of imbalance that requires an immediate solution – ESS is the answer. Curtailment is necessary today as the electricity grid currently has no means to store the excess electricity generated and this is ultimately an additional bill that the consumer is forced to pay. With consumers facing rising electricity bills, it is in everyone’s interests that none of this green energy is wasted.”

“The UK energy storage market is set for significant growth. However, the total potential of energy storage is currently limited by a lack of experienced operators, and this problem will only intensify, with demand for storage rapidly increasing as the deployment of renewable energy installations continues apace and the traditional coal and gas-fired generation are retired. We believe energy storage has significant potential from an institutional investment standpoint and is the key to a renewable energy future in the UK.”

Admission to the Specialist Fund Segment of the LSE is expected in early November 2018.

Read more HERE

29th October 2018
ESMA: European Commission to regulate the crypto space with existing legislation

1 min read

The European Securities and Markets Authority (ESMA) new report recommends to the European Commission that it regulate the cryptocurrency space with existing legislation.

Rather than instilling new rules and laws. This the Securities and Markets Stakeholder Group (SMSG) wrote in their report.

According to bitcoinmagazine.com, the report identifies that most crypto assets are covered by the Unfair Commercial Practices Directive. That regulates unfair business practices in the European Union.

Therefore, requires correlated laws. As a result, to incorporate it into each member state’s legal system.

Questions

The report asks several questions about payment tokens, utility tokens, and asset tokens. It wants to determine whether they can or should fall under present statutes.

‘The SMSG focuses this report on financial regulation in the remit of ESMA. In order to determine what crypto-assets are or should be covered by what regulation, the SMSG has classified crypto-assets on the basis of the following questions (see decision tree below):

1. Does it give the owner an entitlement against the issuer? If so, is it an entitlement in kind or a monetary entitlement? If it is a monetary entitlement, is it profit sharing, a predetermined entitlement, or undetermined other kinds of entitlement?

2. Is it transferable?

3. Is it scarce, and how is scarcity controlled?

4. Does it give decision power on the project of the issuer?’

The SMSG concluded that MiFID doesn’t cover payment tokens.

The report mentions that MiFID doesn’t cover payment tokens like bitcoin.

This is the EU legislation that regulates companies providing services to clients. Likewise, clients related to stock shares and bonds.

The Prospectus Regulation, which rules businesses’ shareholding structures don’t these tokens are not included in. Or the Market Abuse Regulation.

The report suggests that these assets carry the same risks as other investment objects. And thus the authors urge the EU to place cryptocurrencies under MiFID II control.

Speaking about utility tokens

The report stated they are a completely different ballgame. ESMA’s report, these currencies did not classify as investments.

According to the report, they provide investors to access a company’s products and services. ICOs or initial coin offerings are responsible to issue utility tokens.

To raise capital, a new company or startup usually sell a utility token to investors. In return, they gain access to a new coin.

EU financial regulations don’t cover utility tokens.

Because they are not transferable and are only usable in a relationship between the user and the issuer. Thus, the report says MiFID II should not cover these currencies. Unless they are considered transferable.

For example Filecoin, which builds and runs data applications and helps build smart contracts. It has the potential to become an investment object in the future.

Consequently, it would have many of the same risks as traditional stocks.

Tokens

The report examines asset tokens, which are physical goods. Companies can use it to finance new business projects or transfers of goods. In that case, they are recorded into the blockchain.

In that way, they provide stronger security measures for both parties, the receiving, and offers.

The report examines which assets are financial instruments or transferable securities. If a token offers a user financial entitlement of some kind. In other words, it bears the same features as both bonds and shares. It is thus transferable.

And the report’s suggestion is it should fall under MiFID II and the Prospectus Regulation.

Examples include EOS and any other ERC20-based tokens. It is possible to purchase and trade via digital exchanges. They are transferable between rewards programs, compatible wallets, etc.

ESMA doesn’t have the power to implement new laws and regulations regarding any financial instruments. ESMA can’t change existing laws. The report is intended to advise ESMA on how to discuss such changes with the European Commission.

Read the whole report here

Risk Disclosure (read carefully!)

25th October 2018
Blockchain Technology – Is There Future For It

2 min read

Blockchain technology provides transactions and transfers online without the use of an intermediary.

The Blockchain is a new name in the world of technologies but it is definitely the one to last. Even in the early stages, the technology has gained huge popularity starting with their very first application of cryptocurrencies. More areas of applications are being discovered and tested with each passing day. Once the technology is adopted and accepted on a global level, it’ll transform the way we live today.

Blockchain technology simply means a decentralized trusty network. It works by having a native asset, a decentralized ledger and some algorithms based around a game theory model. It allows everyone on the network to reach consensus.

Let me try to explain what blockchain technology is

The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient and ask them to make revisions to it.

The problem with that scenario is that you need to wait until receiving a return copy before you can see or make other changes. This because you are locked out of editing it until the other person is done with it. That’s how databases work today. Two owners can’t be messing with the same record at once.

That’s how banks maintain money balances and transfers. They briefly lock access (or decrease the balance) while they make a transfer. Then update the other side, then re-open access (or update again).

With Google Docs (or Google Sheets), both parties have access to the same document at the same time. And the single version of that document is always visible to both of them. It is like a shared ledger, but it is a shared document. The distributed part comes into play when sharing involves a number of people.

Efficiency and effectiveness

Imagine the number of legal documents that you can use that way. Instead of passing them to each other, losing track of versions. And also not being in sync with the other version. So, why can’t *all* business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow.

You don’t need a blockchain technology to share documents, but the shared documents analogy is a powerful example.

Far from a short-term trend, blockchain technology is revolutionary. It is a new approach to transactions that major companies are beginning to implement.

In a market saturated with new and innovative business strategies, it can be difficult to decide which to adopt. On one side you don’t want to fall behind when it comes to the latest technology.

On the other, you don’t want to waste your money on a “cutting-edge” fluke. If you’re looking for a new, efficient way to carry out transactions, blockchain is a technology that your company might find helpful.

What Blockchain technology requires

You might ask why blockchain technology seems so cryptic. The challenge is that it used to be almost exclusively connected to tech circles. And was not widely used by the general public and non-tech businesses. This history is part of why it seems so mysterious today. Because it’s relatively new to most of us, and the way it works can be difficult to explain without going into confusing and complex concepts.

Blockchain technology was originally developed for bitcoin, the base of other cryptocurrencies. But the blocks in a blockchain might contain information about identity, dates, or most anything.

Marc Andreessen from VC firm Andreessen Horowitz and American entrepreneur, investor, and software engineer called Bitcoin and the underlying blockchain technology a “breakthrough in computer science”.

“The practical consequence (…is…) for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

Comparisons

In a 2014 New York Times op-ed, Marc Andreessen, likened Bitcoin to personal computers and the Internet in their early days. Each of which depended on the high expectations of their success to make them actually successful.

“This is the classic ‘chicken and egg’ problem with new technology: new technology is not worth much until it’s worth a lot,” he wrote about blockchain technology.

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. It is originally developed for the digital currency, Bitcoin. But the tech community is now finding other potential uses for the technology.

The short version of it:

Blockchain technology provides a way to make transactions and transfers online without the use of an intermediary. Instead of trusting a third party to keep the transaction history safe and accurate, blockchain technology lets you seal “pages” of transactions with a key code for security.

With blockchain technology, many people can write entries into a record of information. And a community of users can control how the record of information is amended and updated. Likewise, Wikipedia entries are not the product of a single publisher. No one person controls the information.

But a feature that Wikipedia does not share with the classical blockchain is encryption. Because ownership and anonymity is an important feature of blockchain technology. Encryption of information is necessary so that no one can steal data or duplicate them.

Individuals and businesses use blockchain technology for a variety of reasons. Though some “shady businesses” might use blockchain technology to avoid leaving a paper trail, it’s more often employed to gain improved assurance and privacy. It also allows users to exchange money without the backing of physical currency. This is one of the qualities that has made Bitcoin famous and makes it sometimes controversial.

Bottom line

There’s a wide variety of blockchain technology-based services on the market.

One of the most relevant reasons that many companies are adopting blockchain technology is efficiency. We can all realize how exchanges can become quicker. And simpler too, when they don’t have to go through a third party. It’s also beginning to move document authentication toward obsolescence, removing a step in the transactional process.

Blockchain technology can also make companies feel like their information is safer and more secure. In an age where hacking banks cannot always resist off attempts to attack people’s financial privacy. Therefore, blockchain technology is a way to feel a greater sense of control over transactions.

Major companies are adopting blockchain technology because they don’t want to miss out on what could become. And it is already extremely popular and efficiently.

“In the mid-to-late 2000’s, big companies missed the social media train,” marketing and business strategist Clay Hebert said. “They couldn’t see how Twitter or Facebook would immediately impact their business, so they were slow to adopt these technologies. They don’t want to play catch-up again.”

Risk Disclosure (read carefully!)

25th October 2018
Blockchain ‘Interesting’ But Hyped

Blockchain not the best technology for every considered use, says Australian government report.

2 min read

What a change!

In May, Australia’s Department of Home Affairs revealed a plan to investigate blockchain’s potential to bring secure and transparent international trade and supply chain management.

The chief digital officer of Digital Transformation Agency (DTA), Peter Alexander said: “Blockchain: Interesting technology but early on in its development, it’s kind of at the top of a hype cycle.” Alexander said at a parliamentary committee meeting on Tuesday, as reported by ZDNet.

He was further quoted as saying that most of the hype comes from companies seeking to make profits in this area.

“It’s not that we don’t trust any of the vendors – that would be an unfair characterization – we trust the vendors, but note that the motivation is general sales and making revenue.”

He said standardization of blockchain might open up more opportunities for its use in providing government services.

“We’re not saying that blockchain doesn’t have potential but today, without standardization, there is the challenge of blockchain becoming a little fragmented. When we get to the standardized blockchain then the opportunities for it will grow.”

There is better technology?

Alexander continued, saying that, “for every use of blockchain you would consider today, there is a better technology.”
According to InnovationAus.com. Alexander said that one of the defining features of the blockchain, the potential for anonymity, is among the biggest stumbling blocks.

“Generally speaking when the government is engaging with someone, we want to have a trusted relationship with them. We want to know who they are and give them a personalized service,” he said. “Blockchain is good for low-trust engagement. You don’t know who you’re dealing with but have a series of ledgers that can give some validation and support.”

Peter Alexander, the CDO at DTA said the technology is worth keeping an eye on but is not yet mature enough.

According to Alexander, blockchain is at the “top of the hype cycle”, with demand driven by the industry.

“It would be fair to say that a lot of the big vendors are pushing blockchain very hard. And internationally most of the hype around blockchain is coming from vendors and companies. Not from governments and users and deliverers of services,” he said.

Interesting timing

It is indicated to this opinion was arrived at after the Australian government’s Digital Transformation Agency (DTA) received AU$700,000 (about US$500,000) from the government in May. That amount came to explore blockchain applications within government services.

The Australian government’s DTA has cast doubts over the validity of blockchains for governmental purposes. The agency has been working with a number of government agencies. They wanted to develop prototypes for the use of blockchain to deliver services. Including with the Department of Human Services for welfare payments and cargo settlement.

On the other side is Australia’s new prime minister, Scott Morrison. He is a fan of fintech, open banking and technologies such as blockchain that will drive Australia’s future.

As treasurer, Morrison urged attendees at the Australian Fintech Awards in early August 2018. He wanted to take advantage of the disruption wave sweeping through the global economy.

“I am frankly counting on you not to stuff this up. You need to make this work…In today’s global economy, the ability for economies to become more productive is not being done the old way: the biggest transformer of productivity [will be] innovation,” he told attendees at the awards, as reported by the Australian Financial Review.

Unfortunately, Australia is not an isolated case.

China is another nation that finds blockchain’s anonymity a problem. Earlier this year Chinese students encoded allegations of sexual harassment against a prominent professor on the Ethereum blockchain. They wanted to evade the country’s censors. All social media posts on the issue having been blocked. The same technique was used to spread the news about low quality and counterfeit vaccines, another scandal the government sought to cover up.

China banned crypto

But the Chinese government has drafted a new regulation. That ordinance would require users to provide their real names and national ID card numbers when registering for a blockchain service. The policy would also demand that blockchain services remove ‘illegal information’. And before it can be spread among users. Also under the proposed legislation. Service providers would also have obligation to retain backups of user data for six months. Of course, and to hand it over to the police on request.

China also banned cryptocurrency trading earlier this year, although. Apparently, this has been less than effective. The Ethereum Hotel recently opened in the country, accepting payment in cryptocurrencies.

One note to remember. Without the possibility of anonymity, a permanent ledger could also be a powerful tool in the authoritarian regime’s surveillance and control systems.

Unlike Australia and China, UK leads the way in blockchain deployments for the supply chain.

There is some survey conducted by consultancy Capgemini. They researched 450 organizations implementing blockchain in their supply chain. And the result wasn’t surprising. Only three percent so far took initial experiments into production at scale. Well, the adoption and the technology itself are at an early stage. The Capgemini report identifies a number of current use cases. They are in the range from low complexity/high adoption scenarios. Like the prevention of counterfeits and tracking asset maintenance, for instance. But also more ambitious and complex uses. Like customer loyalty programs, contract labor procurement, and regulatory compliance, for example.

United Kingdom example

The UK currently leads the way with production and pilot implementations of blockchain projects in the supply chain. At the same time, the USA leads in terms of funding blockchain initiatives.

In the UK specifically, the consumer products vertical is the biggest adopter among those surveyed. It is followed by manufacturing and then retail. However, globally manufacturing is in the leads in adopting this technology.

Capgemini has been working with blockchain technology since 2016. Then it began developing solutions for the financial services industry. The report predicts that experimenting with blockchain will peak in 2020. But it will enter mainstream supply chain usage by 2025.

While throughout the history there were numerous cases of unfounded fears of new technology. For many potential uses, the blockchain is not mature enough. Or lacks the functionality. Or there is the issue of the anonymity of users.

On the other hand, this anonymity could inhibit the nefarious motives and actions of less savory governments against their own citizens.

We will see in which direction the further development of blockchain will go. There is one solid fact: blockchain will survive.

Risk Disclosure (read carefully!)

23rd October 2018
Crypto cannabis is very hot now!

The cannabis industry is hotter than ever, cryptocurrencies got high

3 min read

Crypto cannabis is very hot now. PotCoins are digital coins you can send via the internet, which allow cannabis enthusiasts to interact, transact, communicate and grow together.

Cannabis cryptocurrencies or weed coins are tokens by the marijuana industry. Pot is now completely legal in Canada and Uruguay, and several states in the United States. Consumption of marijuana for medical use is legal in some other states, and also in countries like Israel and the Czech Republic.

Crypto cannabis market

The cannabis market is one of the quickest growing markets but is held back in some countries by states laws that still consider it an illegal drug. That makes problems for the industry to raise money, which is where cannabis cryptocurrencies enter the scene. Weed coins intend to change the nature of the medium of payments for the legalized cannabis industry since traditional banking systems make obstructions for the business.

The booming marijuana industry and cryptocurrencies could present an investment opportunity.

There are several ways to invest in crypto cannabis and it becomes easier to buy legal weed with cryptocurrency. Hence, like any other investment, comes with its own risks. In case you are interested, here is the list of 10 weed coins in the market.

1. PotCoin (POT) – This decentralized crypto became the first of many cannabis cryptocurrencies in 2014. Since then PotCoin is the gold standard. POT’s max supply is 420 million.PotCoin’s market cap peaked at $90,097,520 on January 1, 2018. In June, PotCoin spiked again when basketball player Dennis Rodman wore a PotCoin.com t-shirt to the US-North Korea summit. PotCoin’s valuation was up for 20% on that day. You can buy PotCoin on Bittrex, Changelly, PotcoinTrade, and PotWallet. With a market cap of well over $10 million, PotCoin is the highest valued weed cryptocurrency.

2. HempCoin (THC) – HempCoin (THC) isn’t designed just for cannabis. THC coin is designed for the entire agriculture industry, from tobacco to cannabis and hemp, came into being to facilitate buying farming supplies. Today, you can trade THC on Bittrex and qTrade, it hit a record high market cap of almost $160 million in early 2018.HempCoin is expanding. By 2019, HempCoin will introduce HempPay, a payment platform for buying weed. HempPay will be an app, website and cryptocurrency credit card.

3. Paragon (PRG) – Paragon isn’t for buying weed, it isn’t like other cannabis cryptocurrencies. Paragon’s PRG token is focused on helping weed businesses grow. Paragon developed ParagonCoin (PRG) in order to provide cannabis businesses to pay rent. What is it about? ParagonSpace is a brand-new cannabis coworking space in Los Angeles and PRG is the only currency that ParagonSpace accepts, whether you’re buying coffee or renting an office.ParagonSpace hopes that their Ethereum-based cryptocurrency will work for business to business and business to customer interactions.ParagonCoin is still in its early days. They’re still building an all-encompassing cannabis business ecosystem with smart contracts, a coworking space, and cryptocurrency, all on the blockchain. Paragon’s total supply is of 164,936,584.

More participants in the crypto cannabis market

4. CannabisCoin (CANN) – CannabisCoin is another cryptocurrency designed to making buying medical marijuana easier. It came into 2014 a few months after PotCoin was CannabisCoin. It is peer-to-peer open source currency and like PotCoin, was created to make transactions for medical marijuana dispensaries easier. Initially, it was very popular but it has generally failed to deliver much for investors. This cannabis crypto made waves back in 2014 when dispensaries sold 1 gram of cannabis for one CannabisCoin.The total supply of CannabisCoin is set at 91,859,176, with over 77 million currently in circulation. The currency has a market cap of $5.2 million.

5. CannaCoin (CCN) – Cannacoin is a cannabis altcoin that runs on its own decentralized blockchain and has its own Cannacoin wallet. Forked off Litecoin, Cannacoin uses Proof of Stake-Velocity. Cannacoin is open-source and developers can use it to create other applications. For example, CannaPay a website committed to cannabis credit cards and goes through its own ICO is connected to Cannacoin’s protocol. Cannasight, another Cannacoin project, provides developers to create a multiplicity of open-source applications. Cannacoin has been around since 2014, most of its projects are in early stages of development. CannaCoin has a market cap of $272,000. There’s a circulating supply of 4.7 million CannaCoins.

6. DopeCoin (DOPE) – DopeCoin, was launched in 2014, was remodeled as DopeCoinGold in early 2017. DopeCoin aim is to give people a way to buy weed anonymously without paying transaction fees. Their consideration doesn’t cover legal matters. They don’t care if someone is getting weed from a licensed dispensary or an online black market. Merchants in both the U.S. and in Europe accept DopeCoin payments.DopeCoin also has its own cryptocurrency wallet. This dissenter cannabis cryptocurrency is capped at 200 million.

7. Tokes (TKS) – This cannabis currency aims to move the entire weed supply chain and customer transactions away from cash. Unlike other cannabis cryptocurrencies which operate in a legal gray area, the Tokes platform follows anti-money laundering rules and Know Your Customer financial guidelines to detect money laundering. Tokes provides the security of a Financial Industry Regulatory Authority compliant financial institution. You can buy TKS, keep it in a Waves Wallet and spend it as currency at certain dispensaries. There is a supply of 50 million TKS.

8. GanjaCoin (MRJA) – GanjaCoin is weed cryptocurrency for buying weed both from dispensaries and online. On GanjaCoin’s website, you can buy CBD products and smoking accessories. GanjaCoin is a privately created cryptocurrency but is working on dispensary partnerships.GanjaCoin offers the comfort of virtual payment. For weed producers, cannabis cryptocurrency is even more favorable. With GanjaCoin, they pay low fees via blockchain.GanjaCoin is unique because it’s the first one backed by feminized cannabis seeds. In the future, GanjaCoin will back each coin with a whole gram of weed. The benefit of using this model, in addition to offering a value guarantee, is that it keeps supply low. There will only ever be 42,000,000 GanjaCoins, which is lower than other cannabis cryptocurrencies. GanjaCoin is currently listed on MasternodeXchange and Stocks. Exchange and provides their own cryptocurrency wallet.

9. Growers International (GRWI) – Growers International dates back to 2015. They wanted to meet the particular needs of weed producers. As a member of Growers International’s decentralized platform, marijuana growers can chart seed-to-sale data and keep a record of their plants’ genetic makeup. The immutability of the decentralized ledger lets growers prove a strain’s authenticity. Their partners are already buying supplies using the GRWI token. Growers International plans on offering smart contracts for cannabis farmers, they can use their smart contracts to complete supply costs, electric, labor, etc. Growers International has a cryptocurrency wallet. GRWI is trading on Cryptopia and CCEX.

10. KushCoin (KUSH) – KushCoin is based on blockchain technology to the medical marijuana supply chain. This cannabis cryptocurrency seeks to connect the process of growing and selling weed, staying in compliance with federal, state and local laws. The point is to have different levels of the supply chain so, consumers to avoid high fees and inconvenience by paying with a cryptocurrency. In 2014, KushCoin started with the goal of addressing all these issues. Their plan was to create a KushCoin wallet, a seed bank for KushCoin users and a crypto credit card. According to Bitcoin Forum, someone hacked KushCoin. But the developer recently got back control.
There are also GreenMed (GRMD), Sativacoin (STV), Cannation (CNNC), Bongger (BGR), Marijuanacoin (MAR), BlazerCoin (BLAZR), Budbo (BUBO).

Bottom line: The most important aspect of starting your own cannabis-related business is actually the most important aspect of starting any kind of business: picking the angle you’re most happy with.

Investing in a cannabis company comes with a number of risks that could negatively affect investment at any time. There remains a large amount of uncertainty in this emerging sector, especially as laws and business models continue to evolve.
Some investors may see others flocking toward an emerging sector and can be compelled to follow out of fear of missing out on an opportunity.

However, behavioral insights shed light into the way that people make decisions about money and has shown that investors who follow other investors’ behavior are more likely to invest in speculative bubbles that could burst. If that happens, investors could stand to lose some or all of their investment. But isn’t every investment potentially risky?

The risks in crypto cannabis

Many cannabis companies are promising investors the opportunity to capitalize on the potential for considerable future growth. A number of companies are looking to expand.

The cannabis industry is hotter than ever, with new deals announced almost every day, and merger and acquisition activity at an all-time high.

As per Viridian Capital Advisors estimates, investments in the marijuana industry reached $6.6 billion in the first 10 months of 2018. According to New Frontier Data, sales are expected to surpass $9.5 billion in 2018, some forecasts say to $12 billion.
Risk Disclosure (read carefully!)

21st October 2018
India Could Treat Unregulated Crypto Assets as Illegal

2 min read

According to Moneycontrol, a report which is being prepared by a committee headed by India’s Economic Affairs Secretary, Subhash Chandra Garg, may propose amendments to the existing laws with a view of making it illegal to hold crypto assets that are not approved by the government.

Does it mean that could soon be illegal to hold cryptocurrencies that lack the government’s seal of approval in the world’s largest democracy?

The panel will propose legislative amendments and recommending punishment for those holding unapproved crypto assets and also will penalties for those who flout the law.

This move is the result of the government’s attitude that crypto assets which are unregulated should be kept out of the Indian financial system to prevent them from being used to aid illegalities. Under this formulation, they mean evading taxes as well as in Ponzi and multi-level marketing schemes.

According to the same source, holding unregulated crypto assets like bitcoin in India could attract punishment.

India treats crypto as illegal.

Why this isn’t surprising?

The Subhash Garg-committee was placed last year and have to submit its report in December. Besides the Economic Affairs Secretary, the other members of the committee come from India’s central bank and the country’s securities markets regulator.

It is expected the Subhash Garg-panel report be adopted. Having in mind their previous attitude, there will not be a surprise.

Anti-Cryptocurrency opinions have various government agencies in India. This spring, the Reserve Bank of India (RBI) barred banks and financial companies dealing with virtual currencies and banned these financial institutions from allowing their clients to buy cryptocurrencies. They were given three months’ time (ending June 2018) to exit from any such services if they were offering.

“…with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs [Virtual Currencies],” read part of a statement issued by the RBI as reported by CCN. “Regulated entities which already provide such services shall exit the relationship within a specified time.”

The consequences after the ban are still felt today.

In September one of the biggest cryptocurrency exchanges in India, Zebpay, announced that it was shutting down after it found itself unable to operate without access to banking services. That is the indicator that India treats crypto as illegal.

The negative consequences of the ban have not been limited to cryptocurrency exchanges, however, and have spread to the wider blockchain ecosystem. As CCN reported in September, this was leading to a ‘blockchain brain drain’ as well as ‘blockchain capital flight’ to jurisdictions with more conducive environments such as Malta, Estonia, Switzerland, and Thailand.

What can be expected from these last stages of deliberation?

The government view is that unregulated crypto assets should not be allowed to move into the financial system. In short, India treats crypto as illegal. So, it is expectable that the Garg-panel is likely to recommend appropriate amendments in existing laws, defining the punitive measures for those found holding illegal crypto assets.

In his budget speech for 2018-19, finance minister Arun Jaitley had pointed that cryptocurrency was not legal tender in India, but hinted that the government was open to adopting the underlying technology, called blockchain, to bring in more efficiencies in India’s digital payment systems because it allows keeping a record of a chain of transactions, eliminating the need of intermediaries.

According to Moneycontrol, officials of the capital markets watchdog, the Securities Exchange Board of India (SEBI) have also organized tours to Japan’s Financial Services Agency; the UK’s Financial Conduct Authority, and Swiss Financial Market Supervisory Authority,

The study tours “help engage with the international regulators and gain a deeper understanding of the systems and mechanisms,” SEBI said in it’s in the annual report for 2017-18.

And December is near. The trail of the devastation of cryptocurrency exchanges is visible.

But despite these moves of various governments, which are understandable in some sense because they have no control over the crypto, cryptocurrency will survive. We will be witnesses.

Risk Disclosure (read carefully!)

18th October 2018