Crypto Current Affairs—$50 Million BTC and ETH Fund Launched + Class Action Lawsuit Filed Against Kraken Exchange
Bitcoin has paved the way for new investment opportunities in the cryptocurrency space. We're in the second half of 2017 and cryptos remain the flavor of the month, every month! Latin Americans looking at newer investment opportunities have something to look forward to in the newly formed Crypto Assets Fund co-founded by Roberto Ponce Romay, former senior-manager at consulting firm Bain & Company.
Romay is helping raise approximately $50m with this private fund that invests in Bitcoin and other cryptocurrencies such as Ethereum, ZCash, Ripple, Litecoin and Dash. Crypto Assets Fund claims itself as a unique fund as it differs from the traditional investments by diving into the crypto market that offers potentially high returns in a short term, despite their inherent volatile nature.
The first portion of funding, estimated to be valued in the ball park figure of $10m is in the final stages of completion and an announcement is expected later this month.
This service seems to provide wealthy investors with a crypto-asset in their portfolio with exposure to Bitcoin and Ethereum without worrying about tax compliance, storage complications and regulatory implications. There isn't any fees being charged on the service provide, but the fund will collect 30% of the carried interest based on certain conditions.
Half of the initial funds will be invested in Bitcoin, the remaining across other cryptocurrencies. Future investments will also be spread across certain ICOs to include newer assets and investors.
At launch, the funds will be held by Switzerland-based Xapo, with OTC (over-the-counter) trading services provided by B2C2 OTC, an electronic market maker and a UK FCA appointed representative.
You can find more information on the fund's official website here.
Remember, cryptocurrency investments are subject to market risks so irrespective of your personal choice of investment and strategy, it's wise to remember that market can move both ways.
Do you personally invest in any hedge funds? How is your experience so far?
Class Action Law Suit Filed Against Kraken
In a shocking news today, few traders on the Kraken crypto exchange platform have filed a class-action lawsuit against the exchange over issues resulting from it's flash-crash in May earlier this year and alleged mis-management of the situation.
Five customers, 1 from US, 2 from UK and Israel respectively have filed the case against Payward Inc, which operates as Kraken. These five customers had a total of 3,414.078 ETH liquidated. The amount was worth roughly $329,000 at a price of $96.32 but is around $915,276 at press time.
They have accused Kraken of negligence, breach of contract and unjust practices. They also accuse Kraken of not suspending trading amidst a denial-of-service (DDos) attack which seemed to have several impacted the exchange's ability to conduct trades appropriately.
Had KRAKEN’s exchange been functioning properly, the market manipulation and coordinated ‘flash crash’ and DDoS attack would not have affected the price of Ether in Plaintiffs’ and the Class’ margin accounts and would not have dropped the price of Ether to the depth to which KRAKEN perceived that it reached; and KRAKEN would not have implemented an automated liquidation of the user accounts holding Ether on margin.
However, Kraken has officially stated and I quote:
We cannot compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks.
These plaintiffs have filed a lawsuit via Florida-based Silver Law Group, known for their lawsuits filed against Coinbase and now-defunt Cryptsy. Plaintiffs are seeking an unspecified amount in damages as well as compensation fees. In addition to these they have sought certification for class-action status.
The world of cryptocurrencies is filled with stories of success and scams. We've also seen big exchanges attacked by hackers, notably Bitfinex and more recently-Bithumb. In light of these events the law suit comes as no surprise as cryptocurrency markets are largely unregulated and most exchanges are driven by internal policy instead of a government mandated policy.
What are your views on this class action law suit?
- Do you feel Kraken must be held repsonsible for the DDoS attack and failure to suspend trading under these circumstances?
- Have you been a victim of a crypto exchange hack or an exchange's failure to perform to expected levels?
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I think it is the customers responsibility in the crypto industry right now. Once cryptos become more regulated this might change but in the mean time it is
BUYER BEWARE!!!
Yeah! you never know what happens!
Well to start, great post.
I have yet to invest in any crypto hedge funds. I have used hedge funds in the past for fiat currency and have mixed feelings. I still believe in handling my worth personally. I traded my time for that worth and I intend on knowing what it is used for.
I do not think that Kraken should be held accountable in this instance. Much like everything else in life, we need to take responsibility for our action. If a person lost money because of the flash crash then they have to own it. When I first started messing with cryptos one of the most repeated things I heard was "don't leave money on an exchange if you can't afford to lose it".
Peace,
The Last Sage
couldn't agree you more. You own your own destiny in life and finance. Before putting any money in, make sure that you fully understand it first, then hold onto it. and look at long term not short term.
I am concerned now more than anytime before about how bitcoin will be after 1st AUGUST.
there could be a chain split in Bitcoin and I read an official post in coinbase blog that everyone should take there BTC out of their wallet or rather all online wallets because they still do not know what could happen.
what is your mind about that steemians,,,?
I have simply dispersed out into other solid coins until after Aug 1st. It is possible that a split could happen but I think most are hoping for a consensus on the soft fork. If this is the case, the updates will go through and everything will return to "normal" with some improvements to tx time and fees. I hope this helps a little.
Peace,
The Last Sage
Well said @thelastsage!
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Thank you so much.Glad you liked it!
Okay. First of all, great post as usual. Now if look at the hedge funds, it's kind of risky but highly profitable means to invest your money if you want to grow it fast. If I talk about hedge funds in crypto's, then this thing is completely new and have yet to prove it's trust worthiness. But crypto in general is a revolutionary way to invest money because for last year, crypto's are providing exceptional returns on Investments, higher than hedge funds and even equity. 200% more and less, can you really believe this figure. No one ever thought that this kind of return can be earned through some way of investment.
But yeah, crypto's are subject to high volatility, one moment it is on sky and on other it is on ground. As far as seasoned traders are concerned, they are taking the huge benefits from crypto's not normal people. Crypto's have a potential to change the World and it's financial transaction system but I fear its downfall because of extremely speculative mindset of people.
Now, Kraken can be held accountable for anything. Money in the crypto's are subject to high risk and it can't even recovered once lost. So people shouldnt let it stay on exchange, and they should use a hard wallet or paper wallet to prevent this kind of situation.
All I had to say, You are inspiration to all the Steemians @firepower. Keep inspiring people with your thoughts and skills brother.
Thanks dude! :)
Keep us posted on the lawsuit.
Surely, will do!
Honestly, I dont see how it is Kraken's responsibility to compensate these folks. Its business, its a risk! No one forced them to put their coins on margin call. When I joined CB I knew there was an option for that, but I also thought "You know what if the market dips and then rebounds quickly I would be shit outta luck... so to hell with it ALL IN if the price hits zero it hits zero."
If you want to know if suing Kraken is just then just think about it this way if these people tripled their money due to the attack instead of lost most of it, would they be suing to give back what they made?
Yeah, you are right in a way! Good point!
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Cool!
Always great info! Thanks
Thanks you!
let the court decide
Yeah, probably they should!
thank you for the info and good post! I have ripple in my kraken account, i don't know if i should take it out or not.
It's probably as safe as any other exchange. The problem was that these people had orders that they feel should not have been filled due to the flash crash. It's an anomaly, sometimes due to purposeful action and sometimes just a market mishap. If you don't have stops on your tokens, or other orders that have the potential to cause you to sell low, then you're not exposed to this.
True that!
Glad you found it useful. Well, you can either transfer it or retain it as it is. No Harm done.