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Ethereum ICO Whale Sells 2,000 ETH For $6M, Retains $89M In Assets: Report

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In a notable market movement, the early participant of the Ethereum Initial Coin Offering (ICO) shook the market by selling 2000 ETH for an amazing 6 million USDC while the transaction value was around $2,997 per ETH only six hours ago. This activity was revealed by the highly acclaimed crypto analytics company Spot On Chain in one of their latest posts that demonstrates the type of activity of crypto whales.

An investor known in the community of cryptocurrency by his huge position, has bought 33,213 ETH from Ethereum ICO on July 30, 2015. During this period, the cost of ETH was $0.31 per unit. After obtaining the initial stash, the investor conducted several deals, including sending 5,110 ETH to the Kraken exchange or selling them through decentralized exchanges (DEXs) at an average rate of around $2,545.

Ethereum Whale’s $89M Holdings Shape Market

At the moment, this crypto whale holds around 29.7K ETH which is worth about $89.4 million. The funds are spread across three wallets with most likely a large portion in various staking platforms, a popular method used by investors to earn rewards while helping to secure and support the operations of the blockchain network.

This recent transaction is a perfect case of how the big holders can manipulate the market of Ethereum. Market analysts monitor such activities because they give clues to market trends and possible price movements. The sale influences Ethereum market via an injection of a huge amount of money and indications of possible further actions by large-scale holders.

Staking is one of the most popular strategies of Ethereum holders with the recent transition of the network to a proof-of-stake consensus mechanism. The system enables passive earnings to be realized by the investors in the form of bonuses, which makes owning and keeping large volumes of ETH very attractive.

The sustained monitoring and documentation of these whale movements play an important role for experienced holders as well as the beginners in the cryptocurrency world, giving them the idea behind the activity which drives market swings and chances in the digital currency market. While Ethereum evolves and grows its ecosystem, the actions of the market makers will surely be one of the main interests.

Maximize Profits with VC Spectra: From 212.5% Gain in Stage 3 to a Stunning 900% ROI at the End of the Presale

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VC Spectra (SPCT) achieved a remarkable milestone by raising an impressive $2.4 million through its private seed sale. Afterward, Stage 1 of the project’s public presale saw the rapid sellout of 125 million VC Spectra (SPCT) tokens. VC Spectra (SPCT) has progressed to Stage 2 of the public presale, offering another 125 million tokens valued at $0.011 per token.

Having successfully sold out Stage 1 and progressed to Stage 2 of its public presale, VC Spectra (SPCT) has already delivered a 37.5% return on investment for its early investors. Stage 1 investors will earn a staggering 900% profit at the end of the public presale. This blockchain-based asset management project has attracted widespread attention from investors globally, offering a secure and inclusive investment solution.

>>BUY SPCT TOKENS NOW<<

The Mission and Vision of VC Spectra

At the frontline of the fintech and blockchain industry, VC Spectra (SPCT) leads the way toward technological innovation by strategically choosing investments and Initial Coin Offerings (ICOs).

As a decentralized hedge fund, VC Spectra (SPCT) creates an inclusive opportunity for investors from all walks of life to invest securely, transparently, and profitably, allowing their assets to grow.

After recognizing the issues encountered by current and potential investors in the crypto sector, VC Spectra (SPCT) aims to resolve the lack of transparency and universal standards that prevent the valuation of investments within the blockchain industry.

The cryptocurrency trading market is famous for its high volatility, which increases the possibility of price manipulation by creating fake market sentiments. This problem is not limited to cryptocurrencies alone but is also seen in stock trading. Furthermore, lacking a universal regulatory board increases uncertainty, making this market an easy target for scammers to exploit unsuspecting investors.

VC Spectra (SPCT) visualizes a crypto market that embraces inclusivity, offering a smooth and enjoyable experience for anyone to invest in available blockchain ventures easily.

With solid confidence and diligence, VC Spectra (SPCT) aims to democratize access to blockchain and distributed ledger technology (DLT), promoting a profitable and sustainable investment opportunity.

Profits and Investment Potential for Investors

VC Spectra (SPCT) has already proven itself a lucrative investment for early investors, as shown by the significant 37.5% gain in its move from Stage 1 to Stage 2 of the public presale. Interestingly, Stage 1 investors are set to enjoy 900% in profit at the end of the presale phase.

For the investors who missed the worthwhile investment opportunity in Stage 1, participating in Stage 2 offers a favorable chance to capitalize on VC Spectra’s growth potential.

Stage 3 is scheduled to drive the VC Spectra (SPCT) token price to $0.025, a 127.27% return on investment from Stage 2. This gain proves that VC Spectra (SPCT) is a promising investment opportunity for those investors seeking substantial long-term gains.

As the project advances through these presale stages, investors can expect multiple price surges as the token advances to its $0.08 presale target. The final price represents an astonishing 627% surge from the Stage 2 presale price. This growth potential makes VC Spectra an attractive investment option for investors looking for guaranteed massive profits.

In the future, VC Spectra aims to make its tokens accessible globally through major exchanges once the public presale is completed. With this development, investors can expect a transformative journey as the platform creates a secure and promising asset management network, helping open up new possibilities and investment opportunities.

Learn more about VC Spectra (SPCT) and its presale:

Buy Presale: https://invest.vcspectra.io/login

Website: https://vcspectra.io 

Telegram: https://t.me/VCSpectra

Twitter: https://twitter.com/spectravcfund

ICO-Era Ethereum Whale Transfers Entire $116M To Kraken: What’s Going On?

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A dormant Ethereum whale belonging to the pre-mine era has reactivated after 8 years to deposit all of its 61,216 ETH holdings worth roughly $116 million to the Kraken exchange, a few hours ago. According to Lookonchain statistics, the anonymous investor bought 61k ETH at Ethereum Genesis while the price of ETH was about $0.31.

Before sending the larger amount, the ETH address initially made a test transaction of 0.05 ETH to the crypto exchange. Market observers speculated that millions of dollars’ worth of selling pressure were about to strike the market for ETH when they noticed the transfer of the entire wallet balance.

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ICO-Era Ethereum Whale Transfers Entire $116M To Kraken: What's Going On? 2

Pre-mine era ETH was distributed as a token of appreciation to Ethereum’s early backers, including those who contributed money during the project’s Initial Coin Offering [ICO]. 72 million ETH were available when the ETH network first launched, and 83% of those were given to anyone who bought the cryptocurrency during the public sale that took place in July and August 2014.

At the time, participants in the crowd sale contributed a total of 31,000 BTC to a Bitcoin address provided by EthSuisse in exchange for an Ethereum wallet address to which the ETH they bought would be sent upon the network’s official debut.

The majority of early buyers sold off their coins; hence, news of such pre-mine addresses re-emerging hits the headlines. The owners of the remaining wallet addresses, if they decide to sell, would probably realize one of the highest returns on an initial investment in history, which would also have an impact on the cryptocurrency market as the price of ETH has increased dramatically over the years.

Ethereum’s Large Investors Are Cashing In On The Profits

Recent data provides insight into the actions of Ethereum whales, who are drastically reducing their holdings. One such transaction involves a whale selling 4,549 ETH for $1,930 [or roughly $9 million]. Notably, on January 9, one particular whale paid $6 million to purchase 4,549 ETH for $1,319, making a profit of over $2.78 million.

This sell-off pattern among ETH whales may have been brought on by a calculated attempt to capitalize on the recent rise in the value of the second-largest cryptocurrency. The favorable court ruling in favor of the Ripple-affiliated XRP token, which had a knock-on effect on several other digital assets, including Ethereum, is largely responsible for the current market position.

SEC Tightens Noose Over Binance As It Investigates The Latter’s 2017 ICO Sale

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US regulator SEC has now directed its attention to the world’s largest crypto exchange Binance to examine if its 2017 initial coin offering [ICO] for its BNB token is in violation of the securities rules that require prior registration with the agency.

In more troubling news, the platform currently faces multiple investigations in Washington. Sources closed to the matter revealed that the SEC has brought dozens of enforcement actions over ICOs, which involve issuing virtual coins to raise money.

Following the investigation, Binance released a statement saying, “it would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests.”

The firm added that it would be assisting the authorities and “we will continue to meet all requirements set by regulators.” 

Apart from BNB, the SEC is also probing possible trading abuses by the firm’s insiders and also investigating its American affiliate- Binance.US, formed in 2019. 

More Scrutiny Awaits Binance

The crypto exchange however maintained that Binance.com and Binance.US “are separate entities.” “The US branch is a separate trading platform that services US users by offering products and services that are compliant with US federal and state regulations,” the firm said.

In a separate statement, the US’s arm said it was “committed to upholding the highest standards of compliance.”

Anonymous experts sources said the SEC is also monitoring market-making entities linked to the founder Changpeng Zhao, commonly known as “CZ”.

Will Binance Meet Ripple’s Fate?

The latest development has raised concerns of Binance meeting a similar fate to that of Ripple Labs Inc., which is currently engaged in a bitter court battle with the SEC after the regulator sued the firm and two of its executives in December 2020 for allegedly breaking rules in selling a crypto token known as XRP.

In its defense, Ripple emphasized that its token acts as a medium of exchange for digital currency rather than a security, and called the SEC’s litigation flawed.

U.S. Securities and Exchange Commission chair Gary Gensler has been taking aim at crypto exchanges by asserting that most digital assets fall under the purview of the SEC and crypto trading platforms should be registered with the agency.

Tron Foundation Urges NY Federal Judge To Dismiss ICO Lawsuit

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The Tron Foundation has requested a New York federal judge dismiss, what it called a “fatally flawed” class-action lawsuit that alleged securities violations through the China-based blockchain platform’s 2017 initial coin offering [ICO].

Tron’s ICO was conducted from the 24th of August to the 2nd of September, 2017. The foundation had reportedly secured $70 million from its native TRX token.

On April 3 when the lawsuit was filed, 10 other lawsuits were also filed in the New York Southern District Court against issuers and cryptocurrency exchanges. All of them alleged there was a distribution of unregistered securities.

Three years later, in April 2020 multiple lawsuits were filed against the issuers and cryptocurrency exchanges. In a particular lawsuit, the plaintiffs’ Alexander Clifford and Chase William brought a class action against Tron Foundation, its Co-founder and CEO Justin Sun, and Zhiqiang [Lucien] Chen. This stated, that the defendants in question allegedly promoted, offered, and sold TRON’s securities, ‘TRX’ tokens, throughout the United States, in violation of federal and state securities laws.

“Although TRON described the TRX tokens as something other than securities, they were securities. This was not clear to a reasonable investor at purchase, however, and would not have been reasonably apparent until, at the earliest, April 3, 2019, when the SEC released a detailed “Framework” to analyze digital assets, indicating that TRX and other similar digital tokens are “investment contracts” and therefore securities under Section 2 of the Securities Act of 1933.”

According to the latest motion filed by the foundation, it claimed that the case does not have any connection to New York while stressing that the lead plaintiffs, Colin Hardin, David Muhammad, and Chase Williams did not even engage in Tron’s ICO. Furthermore, the motion also pointed out that the suit was filed by the three plaintiffs nearly two years after the completion of the offering.

Tron’s motion asserted that three of the plaintiffs purchased their TRX tokens via Binance, which happens to be a secondary exchange to the offerings. Hence, it contended that the foundation should be dismissed since the underlying law does not cover deals done through secondary exchanges.

The latest motion filed by the defendants also argued that it does not have any control over plaintiffs’ decision to purchase TRX.

While rubbishing claims of being misleading and deceptive, Tron also stated,

“This claim was not even pleaded in the original complaint, and it is nothing but a litigation afterthought”

American Rapper T.I. In Troubled Waters For Endorsing Fraudulent ICO

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Initial Coin Offerings [ICO] captured the attention of the entire crypto-verse a few years ago. However, it has also paved the way for several fraudulent platforms to enter the industry. While some say that the ICO bubble burst, the scams linked to it have been prolonged. More recently, a prominent actor along with a few others from Atlanta came under the purview of the United States Securities and Exchange Commission [SEC] for endorsing fraudulent ICOs.

T.I. To Pay $75K As Penalty

In a recent press release, the SEC highlighted that prominent actor and rapper, Clifford Harris, more popularly known as T.I. or Tip was charged for promoting Ryan Felton’s fraudulent unregistered ICOs. Apart from Tip and Felton, three others were also charged of being involved in the deceitful project. Felton’s projects included a digital streaming platform, FLiK, and a crypto exchange, CoinSpark.

The SEC accused Tip of endorsing FLiK via social media by selling FLiK tokens while urging people to invest in the fraudulent ICO. The rapper did so by claiming to be the co-owner of FLiK. This was reportedly carried out by the rapper’s social media manager, William Sparks, Jr.

As a penalty, the SEC required T.I. steer clear of any crypto securities offerings or sales for the next five years along with a civil monetary penalty of $75,000. Even though a lawsuit alleged that prominent comedian, Kevin Hart was part of the scammy ICO, the SEC did not press charges.

The other two involved in the case, Chance White and Owen Smith were charged for endorsing SPARK tokens “without disclosing they were promised compensation in return.” Both Smith and White were required to pay a total of $25,000 each. The individuals were also refrained from engaging in activities pertaining to digital assets like issuance, offering, purchase, or sale.

Elaborating on the amenities for investors, Associate Director in the Division of Enforcement, Carolyn M. Welshhans said,

“The federal securities laws provide the same protections to investors in digital asset securities as they do to investors in more traditional forms of securities

While Felton promised his investors that he would roll out FLiK as well as CoinSpark and raised funds via the ICO, he instead garnered a whopping $2.2 million as profits by selling FLiK tokens in the market. Felton reportedly transferred the tokens to himself before selling them off and even attempted to inflate the price of SPARK tokens by manipulative trading. The SEC further alleged that Felton purchased luxury goods including diamond jewelry, a million-dollar house, and a Ferrari with the acquired funds.

Welshhans further added,

“As alleged in the SEC’s complaint, Felton victimized investors through material misrepresentations, misappropriation of their funds, and manipulative trading.”

DeFi Bubble To Pop Sooner Than Expected, Says Messari’s Founder; DeFi’s Value Records Slump

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Even though the Covid-19 pandemic disrupted almost every other industry, Decentralized Finance [DeFi] witnessed exponential growth over the last few months. As the fervor around DeFi grew stronger with time, several platforms were seen venturing into the space. While DeFi went about locking great value, prominent crypto influencers suggested that DeFi was a bubble in formation. However, Messari Crypto’s Founder, hinted that the bubble would pop sooner than expected.

DeFi Following ICO’s Footsteps?

Right after DeFi fell under the crypto spotlight, several scammy projects claiming to have high yields infiltrated the space. Elaborating on the same Ryan Selkis, the founder of the prominent crypto platform, Messari Crypto tweeted,

“We’re nearing the apex of ponzi economics, rug pulls, and “yield” hopping, and ETH fees are going to eat too heavily into non-whale profits.”

Back in 2017, ICOs took the crypto-verse by storm, and in the present-day DeFi seems to be following a similar trail. Selkis pointed out how people assumed that there would be “coordinating utility token for every industry” which led to the boom of ICO. However, he believes that DeFi is just a “big pool of capital” that has been sloshing about a group of people, mostly insiders as well as mercenaries. He added that these individuals would soon run out of people to “fleece”.

Over the last few months, the DeFi space had been consistently hitting new all-time highs in terms of the value locked. DeFi even went on to lock a high of $9.605 billion. However, soon after this, the value of the industry came crashing down to $6.116 billion. During the time of writing, the total value locked in DeFi was at $7.65 billion.

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Selkis further highlighted that he stood by the “if it looks too good to be true, it is” rule and suggested,

“That’s 50% APY yields and greater fool investing in a nutshell. A better way to play DeFi may be to own a couple of blue chips, and forget about them for 3-5 years.”

Additionally, he asserted that even though he loves the “experimentation”  he wouldn’t endorse DeFi to a lot of people as he doesn’t recommend “high-stakes vegas poker to fish.”

Blockstream’s Adam Back shared similar thoughts as he had previously suggested that DeFi was a bubble in the making.

Discovery Science Rolls Out New Crypto and Blockchain Documentary

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A new cryptocurrency documentary named  “Open Source Money” was recently premiered on the Discovery Science channel and continues to broadcast weekly episodes. The new cryptocurrency documentary series provides an in-depth analysis of what the cryptocurrency ecosystem is and tells the story of Dragonchain, a US-based blockchain technology firm.

Crypto and Blockchain documentary shares rich insights

The docuseries are based around an initial coin offering ( ICO) called Dragonchain. Dragonchain Network was created by the branch of the Walt Disney Company in Seattle back in 2014. Yet in 2016, the blockchain project and Walt Disney opted for cut-off ties. The episode follows Joe Roets, the founder of Dragonchain and entrepreneurs across the U.S. who face tremendous opposition from the U.S. government and SEC as they seek to progress in the cryptocurrency industry.

YouTube video

 

The episodes will also highlight major contributors to the cryptocurrency revolution when telling the Dragonchain ‘s journey. Perianne Boring, the founder of the Chamber of Digital Commerce, Alex Mashinsky of the Celsius Network, the infamous John McAfee; also feature special appearances in the documentary

Open Source Money is directed by J.D. Seraphine and Executive produced by   Vision Tree Media. This is the first series to be entirely financed with a budget of $1 million by cryptocurrencies. Open Source Money is directed by J.D. Seraphine and Executive produced by   Vision Tree Media. This is the first series to be entirely financed with a budget of $1 million by cryptocurrency. Notably, the company managed to raise $1 million in funding to drive the filming process through a variety of cryptocurrencies.

“Each episode highlights major contributors in the cryptocurrency revolution, including notable figures Patrick Byrne, Brock Pierce, Joe Roets, and companies the likes of Disney, Facebook, and more,”  said the Open Source Money website.

In conclusion, the 5-part documentary series focuses on the current regulatory stance on cryptocurrencies in the United States. “Open Source Money” will be broadcast on the Discovery Science channel and Philo at 10 a.m. ET every Saturday until the final episode.

Co-founder of Centra Tech Crypto Firm Pleads Guilty to ICO Fraud Promoted by Mayweather and DJ Khaled

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The crypto founder of Centra Tech crypto firm, Robert Joseph Farkas, also known as “RJ,” pleaded guilty on 16 June on charges of conspiracy to commit securities and wire fraud. The 2017 ICO fraud was promoted by celebrities such as the Floyd Mayweather boxing icon and the DJ Khaled music producer.

According to a press release published by the Department of Justice, crypto founder Robert Farkas pleaded guilty to conspiracy to commit securities and wire fraud in connection with a dubious cryptocurrency project that hoodwinked investors up to $25 million.

Farkas, along with his team, used false information and data omission to lure investors to purchase securities in the form of tokens issued by Centra Tech. The tokens were distributed in the form of an Initial Coin Offering ( ICO) in early July 2017.

Co-founder of Centra Tech crypto firm lied to investors

Centra Tech was one of the many startups that took advantage of the ICO boom in 2017. After promising investors that the funds would develop a range of financial products for the digital economy, the firm distributed unregistered CTR tokens.

The co-founder of Centra Tech Crypto and his team also lied to investors about the firm’s partnership with some of the world’s leading financial services companies. For example, investors were once told that the firm had reached an agreement with Visa and MasterCard; to develop a Centra Fiat-to-Crypt card that would facilitate an instant conversion. The two companies, however, denied the claims.

Celebrity endorsements

Nevertheless, the most effective weapon in their arsenal was the endorsement by international icons such as boxing champion Floyd Mayweather and popular hip hop and record producer DJ Khaled. Mayweather and Khaled urged their fans to invest in Centra Tech; leading to a successful ICO that ran between July 2017 and March 2018.

Furthermore, investors also sued the two celebrities for infringing securities regulations; however, a federal court discharged them from the case in May 2019. In the case of Farkas, he will pass judgment on a date that will be determined. He could face a ten years prison sentence.

SEC Orders BitClave to Pay Back its Customers as Regulatory Body Makes Decision on 2017 ICO

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Regulatory bodies have also kept a close eye on companies involved in the cryptocurrency industry. The main reason for this was the lack of legal clarification and the growing number of fraudulent activities in the region.

Another cryptocurrency organization was recently put to the sword when BitClave, a California-based startup, was paying all its customers back to the US Securities and Exchange Commission [SEC]. Charges were filed against BitClave for conducting an unregistered ICO back in 2017.

BitClaive’s first shot to fame when it raised over $25 million from more than 9,500 investors before the Bitcoin bull ran three years ago. Once the SEC clamped down on the Ethereum-based search engine, things moved pretty quickly to the legal front. BitClave neither confirmed nor denied the illicit aspects of the ICO and agreed to comply with SEC’s orders.

According to the SEC, BitClave will pay back all its customers through a Fair Fund established just for this purpose. The startup had raised the vast capital by selling its native Consumer Activity Token or CAT. The investors were told that BitClave would use the money to develop, administer, and market a “blockchain-based search platform for targeted consumer advertising. A release from the SEC said:

“ BitClave emphasized its expectation that the tokens would increase in value, and took steps to make the tokens available for trading on third-party digital asset trading platforms after the ICO.  The order finds that BitClave failed to register their offers and sales of CAT, which constituted securities.  CAT has since been removed from many of the third-party trading platforms, and BitClave is currently winding down its operations and does not plan to continue developing or supporting the platform. “

Kristina Littman, the Chief of the SEC Enforcement Division’s Cyber Unit added that all issuers of securities must follow the rules charted down by the federal body. The SEC also reiterated its mission to protect the people and their assets at all costs.  The SEC pointed out that CAT tokens were indeed investment contracts because of what was mentioned in the token’s whitepaper.

The CAT whitepaper had told users that as more service providers join the platform, the value of CAT tokens would appreciate. As it stands, the SEC has ordered BitClave to transfer 1.32 billion uncirculated CAT tokens so that they can be taken off the markets. Almost all major cryptocurrency exchanges have removed the token from their platforms, save a few that is expected to follow suit soon.