Why is the crypto market down?
Unless you've been living under a rock for the past week - a red crypto market is not new news to you. Really, throughout the month of January virtual currency's prices have been declining and the public is freaking out. This article covers the whose, what's, and why's the crypto market is being hit.
Most cryptocurrencies aren't even available, yet they have valuations in the six figures. The news is typically the lead cause of which way the price will swing. If bad news comes out - you'll expect to see the crypto markets down.
Facebook Bans Crypto Ads
Facebook announced that it was inhibiting cryptocurrency ads on its apps. In the press release, they explained: "We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception." The new policy is fairly general and gave an example of "use your retirement funds to buy bitcoin."
600 Million Dollar ICO Gets Halted
Evander Holyfield, boxing's only four-time world heavyweight champion, endorsed a little-known cryptocurrency project called ArisBank that alleged raising $600 million of a $1 billion dollar goal. ArisBank was canned by the SEC alleging the venture was a crypto scam. They reported promises like providing VISA cards to spend on any of the 700-plus cryptocurrencies and claiming that it could offer investors FDIC-insured accounts. False. One detail ArisBank never mentioned is their co-founder Jared Rice Sr. recently pleaded guilty to 2015 charges of felony theft and tampering with government records. It gets worse ~ AriseBank's president, Kelvin Spencer, has arrest(s) - yes it's plural - and convictions including a five-year prison sentence for a felony robbery and was obligated to pay a $250,000 fine.
Tether Under Investigation
Rumors have officially begun for Tether. A cryptocurrency that's pegged to the dollar. Basically, if crypto traders get nervous about the volatility of Bitcoin they can convert the Bitcoin to Tether - whose value is roughly the dollar. Just like a casino is required to have cash on hand to pay out if everyone in the casino wins the jackpot - Tether is required to have cash reserves to be able to pay out to traders if they all wish to convert Tether back to USD. We'll find out soon if they do.
BitConnect Ponzi Scheme
BitConnect is a Bitcoin lending platform. Users who participate can earn cash, not cryptocurrency, for lending them your BitConnect coins. It guarantees a daily profit based on how many coins you are lending them. BitConnect claimed if you put in $10,000 worth of coins, they guarantee more than 90% per year in interest payments. A temporary restraining order (TRO) froze BitConnect's asset after they have been given a second lawsuit. The order – granted by Chief District Judge Joseph McKinley, Jr. at the U.S. District Court, Western District of Kentucky – requires the parties to disclose cryptocurrency wallet and trading account addresses, as well as the identities of anyone to whom BitConnect has sent digital currencies within the last 90 days.
BitConnect - I lost my life savings
The story of a man who bet big on BitConnect - and lost it all.