crypto Archives

Best Practices for Cryptocurrency Exchanges

Here it comes – the cryptocurrency exchanges are now under scrutiny. Last year, regulators in the United States were firmly focused on the mechanics and fairness of Initial Coin Offerings (ICOs). By now it seems settled that ICOs need to comply with the federal securities laws. So now it is time for cryptocurrency exchanges to…

tZERO’s Security Token Offering (STO) Unpacked

tZERO is conducting the first major Security Token Offering (STO). tZERO, like Polymath, is positioning itself as a leader in the movement to transition securities like stocks and bonds to the blockchain. tZERO’s niche in this space is trading. It owns controlling interests in broker-dealers, SEC registered trading platforms, and even an investment advisor. Picture Schwab, but all…

Token Airdrops May Technically Be Unregistered Sales of Securities

It has been all the rage lately for blockchain startups to do a token airdrop instead of an initial coin offering (ICO). Now that the SEC has made clear that ICOs are securities offerings, everyone is trying to find a workaround. Why? Because crypto has democratized investment opportunity. The notion that ground floor investment opportunities should…

Bitconnect – Why Crypto Needs Regulation

The Bitconnect scam is a good example of why crypto investors should not fear regulation. If you haven’t heard of the recently-shuttered cryptocurrency platform, it had all the hallmarks of a Ponzi scheme. Despite blaring warnings from the internet writ-large, investors chased after too-good-to-be-true returns and lost nearly everything. The Bitconnect Scam Bitconnect described itself as…

Whistleblower Awards From Cryptocurrency Pump and Dump Schemes

So it looks like the Commodities Futures Trading Commission (CFTC) is taking a hard look at cryptocurrency pump and dump schemes. And its offering awards to whistleblowers of 10 to 30 percent. That’s good, because manipulation has always been one of my chief concerns about crypto markets. Consider that market manipulation is generally illegal in…

Polymath Security Tokens – The Future of Crypto

This is going to sound like a bold claim: Polymath is the biggest thing in crypto. I know, everyone seems to be focused on the “next bitcoin” or “next ethereum.” And Polymath is not it. So why is Polymath such a big deal? Because it aims to put the stock market on the block chain….