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Initial Exchange Offerings Are Showing No Sign of Slowing Down

June 12, 2019 |

Initial Exchange Offerings Are Showing No Sign of Slowing Down

Six months in and initial exchange offerings (IEOs) are refusing to die. Following a year of ICO stagnation in 2018, it appeared that the crypto crowdfunding bubble had popped, sending tokenized projects back to the drawing board. Instead, the medium has been reborn under a different banner. In 2019, IEO token issuance is all the rage, but how long will the trend last?

Also read: Coinbase Launches Crypto Debit Card in 6 European Countries

Wirex Announces a Token Because 2019

Initial exchange offerings are commonly used to bootstrap new crypto businesses – not profitable companies that have already been around for years. Nevertheless, when Wirex shared details of its proposed initial exchange offering on June 10, there was a certain inevitability about it. Despite having survived since 2015 without a token, the crypto payment app will soon be complemented by a native WRX token. A private sale will be held to verified users of the Wirex app, followed by an IEO on Okex’s Jumpstart launchpad on June 26.

Initial Exchange Offerings Are Showing No Sign of Slowing Down

Like any serious crypto project, the WRX token comes with its own whitepaper, which details ambitious plans to roll out Wirex to users in India, Japan, and Africa in the coming year. Wirex is seeking to raise $ 8M from its private in-app sale and subsequent IEO, but has been at pains to stress that this is not a cash grab, stating: “This is not Wirex’s top priority, which is why we’re only putting 1% of the total token supply up for sale during the IEO. Ultimately, the long-term success of Wirex and the eventual adoption of a token economy are our primary concerns.”

Initial Exchange Offerings Are Showing No Sign of Slowing Down
IEOs, marked in green, have exploded this year as a percentage of crypto industry fundraising.

Initial Exchange Offerings Are Getting Meta

As the craze to tokenize everything by IEO intensifies, it has led to some curious collaborations between companies that might otherwise have been regarded as competitors. Bitfinex’s LEO token is now listed on Gate – whose Gatechain Token (GT) is in return tradable on Bitfinex. Six months ago, exchanges listing one another’s tokens would have seemed unthinkable, but as the market share of runaway leader Binance, aided by its native DEX, grows, exchanges are learning that the enemy of their enemy is their friend.

Initial Exchange Offerings Are Showing No Sign of Slowing Down
Bitfinex’s LEO token.

That several initial exchange offerings to date have been for exchanges issuing their own token seems recursive, but is indicative of an industry that is still struggling to find practical applications for tokens other than trading them for other tokens – speculation, in other words. Following its $ 1B private sale, the Bitfinex LEO token has been on the rise, having gained 50% in the last week, and is now worth double its initial $ 1 price. Elsewhere, Bitsdaq will begin trading of its BQQQ token, which was issued via IEO last week, later today. The new exchange, which will gain its liquidity from Bittrex, is predictably planning to serve as an IEO launchpad for Asian crypto projects.

Initial Exchange Offerings Are Showing No Sign of Slowing Down

Raj Kadam of crypto data site Blockmodo told news.Bitcoin.com: “We’re seeing a lot of FOMO with IEOs, as exchanges clamor over whose sale sells out fastest, and retail investors pile in, without even fully understanding the token they’re buying. That said, there are some clear benefits to this model over the ICO.”

He elaborated: “With previous investments, both in terms of venture capital funding and initial coin offerings, the public were left as bagholders at the point of exchange listing. IEOs have flipped that and now a lot of the price discovery is occurring on-exchange, when tokens are listed. This makes for a much more level playing field, and incentivizes a wider community of token holders.”

What are your thoughts on IEOs? Let us know in the comments section below.


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Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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Moon Landing or Misfire? 2019’s Biggest Initial Exchange Offerings Analyzed

April 11, 2019 |

Moon Landing or Misfire? 2019’s Biggest Initial Exchange Offerings Analyzed

Whatever your feelings on initial exchange offerings (IEOs), there’s been no avoiding them this year. Nurtured under the wing of cryptocurrency exchanges before being unleashed onto liquid secondary markets, many tokens have mooned, while a few have fizzled out like damp squibs. To gauge the current market sentiment toward IEOs, news.Bitcoin.com has calculated the return on investment (ROI) for the first wave of initial exchange offerings.

Also read: How Traditional Stock Markets Can Help Mainstream Cryptocurrency

A Breakdown of 2019’s Leading IEOs

When it comes to fundraising, there’s only been one acronym on everyone’s lips this year and it hasn’t been “STO.” Rather, the cryptoconomy has fixated on the IEO, which has become the talk of Telegram trading groups, crypto Twitter, subreddits, image boards, and every other hub for digital asset discussion. As Priority Token’s Artur Boytsov points out, the first IEOs actually took place in 2017 with the likes of Bread and Gifto, but the trend didn’t really catch on until the beginning of 2019. He notes “at least 15 exchanges which have either started supporting IEOs or announced that they are developing an IEO concept.”

Platforms such as Binance, Kucoin, Huobi, and ZBG have become synonymous with hosting initial exchange offerings, though participating platforms are proliferating so fast it’s impossible to list them all. Having analyzed the performance of the first wave of IEOs, news.Bitcoin.com can provide detailed figures regarding the ROI and all-time high (ATH) of 10 of this year’s most popular initial exchange offerings. The results show significant variance between exchanges in terms of the profit realized by investors.

Moon Landing or Misfire? 2019’s Biggest Initial Exchange Offerings Analyzed
The y-axis shows ROI in USD terms for 10 of the most popular IEOs to date. Bittorrent, for example, has returned 6.4x its original IEO price.

ZGB Launchpad and Binance Launchpad Lead the Charge

Because IEOs are still a relatively new phenomenon, the number of completed token sales per exchange is low. As a result, it is too early to draw any definitive conclusions, although two exchanges have established an early lead: ZGB and Binance boast the first and second most successful IEOs to date respectively, with the former also claiming the number four spot. At the time of publication, kamari (KAM), which was issued on ZGB Launchpad, has performed a 7x in USD terms, followed by Binance’s bittorrent (BTT) at 6.4x. In third place is the Huobi Prime-issued TOP (5.4x), followed by Global Trading System (5.3x), again on ZGB.

Moon Landing or Misfire? 2019’s Biggest Initial Exchange Offerings Analyzed

While the majority of these first-gen IEOs are currently in the green, some exchanges have gotten off to an inauspicious start. Bittrex International had to cancel its first IEO, for Raid, at the last minute after concerns emerged about the legitimacy of the project’s partnerships. Its second token sale, for Veriblock, sold out in just 10 seconds, but investors who managed to snap up VBK tokens have come to rue their seeming good fortune: it’s currently the only IEO profiled here to be underwater, with an ROI of just 0.83x. Be it through luck or judicious vetting of projects, some exchanges have produced a string of winners, while a handful have yet to strike gold.

What are your thoughts on initial exchange offerings? Let us know in the comments section below.


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The post Moon Landing or Misfire? 2019’s Biggest Initial Exchange Offerings Analyzed appeared first on Bitcoin News.

Bitcoin News

FOMO for Initial Exchange Offerings Is Getting Intense

April 4, 2019 |

FOMO for Initial Exchange Offerings Is Getting Intense

The cryptocurrency industry gets older but does it get any wiser? Green candles have begun popping off across the board for the first time in a long time and suddenly it feels very 2017, complete with all the greed, FOMO, and manipulation that was synonymous with that era of excess. Never is this more evident than in the realm of initial exchange offerings (IEOs), where people are taking drastic measures to gain crowdsale admittance.

Also read: How a Large Cash for Bitcoin Deal Goes Down

10 Seconds Is the New 10 Minutes

In 2017, selling out your crowdsale in 10 minutes was grounds for bragging rights. In 2019, the benchmark is 10 seconds. That’s how long it took on Wednesday for Veriblock’s IEO to sell out. A video showing an Asian trading group competing to enter the Veriblock sale the moment it went live has gone viral. Getting into the hottest IEOs this month is an achievement on a par with gaining entry to the Telegram ICO. In American Psycho terms, initial exchange offerings are Dorsia: the hippest new restaurant where everyone’s trying to get a table.

The parallels between two years ago and now are overwhelming. Just as in 2017, people bought into ICOs on FOMO and fundamentals, today’s IEOs are all about the platform issuer rather than the project. If it’s on Binance, Okex, Kucoin, Huobi, Bitmax, or Bittrex, it’s guaranteed to sell out in seconds and to pump when it reaches the main exchange. Who cares about the token’s utility when there’s instant liquidity? As one trader lamented after failing to get into the Veriblock IEO, if you linger long enough to read the terms and conditions, you don’t get in.

FOMO for Initial Exchange Offerings Is Getting Intense

It’s All About the Games

2017’s peak ICOs were subject to gas wars, in which whales would push through enormous transaction fees to ensure they were first in line for ERC20 tokens. This year, the games take place offchain, with aspiring participants contributing within the walled garden of centralized exchanges. Gas wars are no longer a thing, but that doesn’t mean there aren’t those willing to game the system.

“WTB script for kucoin-multivac, money goes to escrow if i get in,” read one post shared in a Telegram channel this week. “Escrow transfers. PM with offers #multivac #kucoin #script.” Assuming that individual was unsuccessful in their request, it’s unlikely they got into the Kucoin IEO through organic means: today’s Multivac IEO sold out in seven seconds. The music’s got to stop at some point, but for now, initial exchange offerings can do no wrong.

FOMO for Initial Exchange Offerings Is Getting Intense

What are your thoughts on initial exchange offerings? Let us know in the comments section below.


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The post FOMO for Initial Exchange Offerings Is Getting Intense appeared first on Bitcoin News.

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From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

March 25, 2019 |

From Kucoin Spotlight to OK Jumpstart: International Exchange Offerings Analyzed

Initial coin offerings haven’t died: they’ve simply rebranded as initial exchange offerings (IEOs). From Huobi to Okex and Bitmax to Bittrex, the number of crypto exchanges hosting token sales has proliferated. In a week where Kucoin has entered the ring with its Spotlight platform, we take a deep dive into IEOs: the good, the bad, and everything in between.

Also read: Bitcoinmap.cash Helps You Find Places to Spend BCH

ICO Becomes IEO

IEOs have been a hot topic this year, with the success of Binance Launchpad causing FOMO among traders, elevating the price of BNB to new highs, and spurring other exchanges into devising their own token sale platforms. In less than two months, the crypto space has gone from having one IEO platform to six. Binance Launchpad now faces competition from Bittrex IEO, Bitmax Launchpad, Huobi Prime, Kucoin Spotlight, Bgogo Apollo, OK Jumpstart, Probit Launchpad, and Exmarkets Launchpad.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

The integrated exchange and token launch system popularized by Binance offers clear benefits to stakeholders including the following:

Exchanges: Increased trading volume, receive a percentage of tokens issued, and demand for their own native token grows. They may also receive a listing fee from the project whose token they’ll be launching and subsequently adding to their exchange.

Projects: Can tap into large existing investor pool, have their token sale promoted by the exchange, and are guaranteed listing complete with the liquidity this brings.

Investors: Have easy access to new tokens via a platform they are already familiar and verified with. Are incentivized to participate in the knowledge that tokens can likely be flipped for a profit once exchange listed.

It’s not all blue skies and clear waters ahead for IEOs however; just as the ICO market became saturated in 2017, there’s a risk that the same will happen for IEO launchpads. To date, Binance Launchpad has been an unbridled success, with its three token sales producing an average USD return for investors of over 300 percent. As the number of IEO platforms grows, however, the quality of featured projects is likely to diminish, dragging down the profits to be realized and dampening investor interest. But for now, at least, initial exchange offerings are hot property, as demonstrated by the spate of platforms that have sprung up to support them.

The following guide will examine the setup of these platforms, including the success rate of projects launched, and the rules for IEO participation mandated of investors.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

Kucoin Spotlight

Parent exchange: Kucoin

Native token: KCS

Token performance: Up 3x in a month

Projects hosted: Multivac

Participation: First come, first served

KYC required: Yes

Kucoin calls itself “the people’s exchange,” and by that reasoning, Spotlight must be the people’s IEO launchpad. Tokens can be purchased using KCS only, Kucoin’s native token. As with Binance coin, KCS has appreciated in value significantly since Spotlight was unveiled. The first project to be launched with Spotlight, Multivac, is a flexible blockchain solution that supports dapps and incorporates sharding to ensure high throughput. Kucoin has been keeping extremely busy of late, having redeveloped its interface, revamped its API, introduced Spotlight, and begun work on Kumex, a Kucoin derivatives platform similar to Bitmex that will also make use of the KCS token.

Bitmax Launchpad

Parent exchange: Bitmax

Native token: BTMX

Token performance: Up 6x in a month

Projects hosted: DOS Network (DOS)

DOS performance: Down 14 percent in last 24 hours

Participation: First come, first served

KYC required: Yes

Bitmax is a relatively new exchange complete with a new platform for token sales. The BTMX token was mired in controversy due to disputes over the allocation and lock-up assigned to private sale participants. Since then, however, the exchange has kicked things up a notch, with the BTMX token following suit, recording an extremely bullish March. At present, traders appear to be more interested in BTMX than they are in the token sales due to launch on the platform. DOS Network hasn’t done much to excite the community, and already there’s a sense that these projects may struggle to sustain their price once exchange listed. It’s early days for Bitmax Launchpad though, which may yet produce some winners.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

Bittrex IEO

Parent exchange: Bittrex International

Native token: None

Projects hosted: Raid (token sale cancelled)

Participation: First come, first served

KYC required: Yes

Hopes were high for Bittrex IEO. Not only does the exchange have a favorable and longstanding reputation within the industry, but without a native token to pump, Bittrex International’s decision to host IEOs seems less cynical than some of its competition. Had its maiden project gone ahead as scheduled, Bittrex would have sold 17 percent of all tokens minted by Raid, significantly more than the 6 percent offered by Binance for the projects it’s hosted. Unfortunately, the Raid token sale was called off at the last minute due to misleading partnership claims. As a result, the Bittrex IEO launchpad remains untested.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

Huobi Prime

Parent exchange: Huobi

Native token: HT

Token performance: Up 2x in a month

Projects hosted: TOP Network

Participation: First come, first served

KYC required: Yes

Huobi has dubbed its IEO service a Direct Premium Offering (DPO). Projects launched in this manner will have their tokens deposited directly into participants’ accounts, who will then be able to trade them instantly against the exchange’s native HT token. Huobi Prime promises:

  • Rigorous screening and selection processes to ensure only premium projects that have yet to be listed on any major exchange are included.
  • Early access to coins at below market prices.
  • Entry to retail investors, not just professionals and VIPs.

The first project earmarked for Huobi Prime is TOP Network, a Silicon Valley-based startup that provides low-cost messaging, calling, video, VPN, CDN, and IoT data sharing services that’s now launching its own DPoS blockchain. Token sale participation calls for a fully verified Huobi Global account and an average monthly holding of 500 HT, although this will be waived for the TOP sale.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

OK Jumpstart

Parent exchange: Okex

Native token: OKB

Token performance: Up 2x in a month

Projects hosted: TOP Network

Participation: First come, first served

KYC required: Yes

Not much is known about Okex’s IEO platform, other than what was outlined in a blog post shared earlier this month. It is likely, however, that entry to projects hosted on OK Jumpstart will require use of OKB, the exchange’s internal token, which is a non-blockchain asset, and thus not transferrable outside of the exchange. Justifying the IEO model, Okex wrote:

The exchange is risking their credibility when doing IEOs, since it has no control over the IEO project team’s operation and product delivery as promised in the latter’s white paper. To maintain trust with its customers, the exchange must carry out a comprehensive assessment of the project before launching the IEO. This provides an extra layer of protection to contributors.

Bgogo Apollo

Parent exchange: Bgogo

Native token: BGG

Projects hosted: Armor

Participation: First come, first served – provided 60+ scored on examination

KYC required: Yes

Not to be outdone, Bgogo exchange has devised its own launchpad, appropriately named Apollo. Its first project is Armors (ARM), which is focused on blockchain security including wallet monitoring and offering various patented technologies. Participation in the ARM token sale, which was conducted on March 23, required passing an entrance exam to establish that investors were familiar with the Armors project.

From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed

All six of these exchanges, as well as Probit and Exmarkets, will have their work cut out in competing with the runaway market leader, Binance, which has recently announced a lottery system for entry into its token sales. Participants will also be required to hold BNB for a period of 20 days, which has served to further drive up the price of the token.

What are your thoughts on initial exchange offerings? Let us know in the comments section below.


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Need to calculate your bitcoin holdings? Check our tools section.

The post From Kucoin Spotlight to OK Jumpstart: Initial Exchange Offerings Analyzed appeared first on Bitcoin News.

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Uber is said to file confidentially for initial public offering, racing rival Lyft to go market

December 8, 2018 |

Uber Technologies Inc. filed documents confidentially this week with regulators for an initial public offering, said a person familiar with the matter who asked not to be identified because it was private.

The offering could be the largest IPO next year and one of the five biggest of all time….


L.A. Times – Business

Japan Unveils Plans to Regulate Initial Coin Offerings

December 3, 2018 |

Japan Unveils Plans to Regulate Initial Coin Offerings

Japan’s Financial Services Agency has held several meetings to discuss how to best regulate initial coin offerings. In addition to registration requirements, the regulator reportedly plans to amend two existing laws that can be applied to token sales.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Registrations and Law Changes

The Financial Services Agency (FSA), Japan’s top financial regulator, “is set to launch regulations on initial coin offerings [ICOs],” Jiji Press wrote on Saturday. Sources told the news outlet:

The FSA will require business operators that issue their own
cryptocurrencies to be registered with the agency.

Japan Unveils Plans to Regulate Initial Coin OfferingsJapan’s amended Payment Services Act requires cryptocurrency operators to register with the FSA. However, ICOs are currently not covered within the scope of this act.

Jiji Press also reported that, in order to “introduce the [ICO] regulations,” the agency “plans to submit bills to revise the financial instruments and exchange law and the payment services law to next year’s ordinary parliamentary session starting in January.”

FSA’s ICO Discussions

The FSA has been holding study group meetings to discuss how to best regulate token sales. The agency has stated that ICOs are not prohibited but acknowledged that many of them are fraudulent. In March, Satis Group published a report which claims that 78 percent of ICOs are scams.

Sources told Jiji Press:

In view of a number of possibly fraudulent ICO cases abroad, the financial regulator plans to limit individuals’ investment in ICOs for better protecting them.

Japan Unveils Plans to Regulate Initial Coin OfferingsWhile Japan currently does not have a specific law for ICOs, two existing laws may apply to them based on how they are structured, the FSA previously explained. The first applicable law is the Payment Services Act. The other is the Financial Instruments and Exchange Act which provides a regulatory framework for securities and securities companies in Japan.

At the latest meeting on ICO regulation held on Nov. 28, the FSA discussed additional areas it plans to regulate.

Japan Unveils Plans to Regulate Initial Coin OfferingsSome ICOs will be regulated under the Financial Instruments and Exchange Act.
“If an ICO has the characteristics of an investment, and the purchase of a token by a virtual currency is practically deemed equivalent to that of legal tender, the ICO becomes subject to regulations under the Financial Instruments and Exchange Act,” the regulator previously explained.

The regulation will also include disclosure requirements and measures for unfair trades. In addition, distribution channels will be regulated and token issuers will be screened to ensure adequate financial health.

What do you think of the FSA’s plans to regulate ICOs? Let us know in the comments section below.


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Bitcoin News

Airspeed Sensors Emerge as Initial Focus in Lion Air Crash

October 31, 2018 |

Potentially faulty or misleading airspeed indications in the cockpit have emerged as an initial focus of safety experts delving into the Lion Air jet crash in Indonesia that killed 189 people, according to industry officials.
WSJ.com: What’s News Asia

US Court Issues Emergency Order Halting a Planned Initial Coin Offering

October 12, 2018 |

US Court Issues Emergency Order Halting a Planned Initial Coin Offering

An American court has put a stop to an initial coin offering (ICO) by a company claiming to offer “the first licensed and regulated tokenized crypto currency exchange & index fund based in the US.” The ICO promoters even invented their own regulatory authority, which seems to have really irked the regulators.

Also Read: The Daily: Whales Join China’s Richest Ranks, Seniors Take a Swing at Bitcoin

SEC Stops Blockvest ICO

US Court Issues Emergency Order Halting a Planned Initial Coin OfferingThe Securities and Exchange Commission (SEC) has announced on Thursday that it has obtained an emergency court order halting a planned ICO by Blockvest. The Southern California District Court order also stopped an ongoing pre-ICO sale by the company and its founder, Reginald Buddy Ringgold, III, as well as freezing the defendants’ assets.

According to the ICO’s website, Blockvest (BLV) is an ERC20 token based upon Ethereum. “Blockvest Nvestnodes generate passive income through asset backed profit sharing smart contracts. At it’s core, BLV is a security token that’s representative of the top performing cryptocurrency index.”

According to the SEC’s complaint, Blockvest and Ringgold, who also goes by the name Rasool Abdul Rahim El, were falsely claiming their crypto fund was “licensed and regulated.” Blockvest and Ringgold also allegedly misrepresented Blockvest’s connections to an accounting firm.

The Blockchain Exchange Commission

The SEC complaint also alleges Ringgold promoted the ICO with a fake agency he created called the “Blockchain Exchange Commission,” using a graphic similar to the SEC’s seal and the same address as SEC headquarters.

US Court Issues Emergency Order Halting a Planned Initial Coin Offering
Screenshot

“We allege that this ICO is using both the SEC seal and a made-up crypto regulatory authority to trick investors into believing the ICO was approved by regulators,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit. “The SEC does not endorse investment products and investors should be highly skeptical of any claims suggesting otherwise.”

A court hearing is scheduled for Oct. 18, 2018. The SEC will ask for injunctions, return of ill-gotten gains plus interest and penalties, as well as a ban against Ringgold from participating in offering any securities in the future.

Would you rather trust the Securities and Exchange Commission or the Blockchain Exchange Commission? Share your thoughts in the comments section below.


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Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

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U.S. securities laws may cover initial coin offerings, judge says in big win for feds

September 12, 2018 |

A federal judge has ruled that U.S. securities laws may cover an initial coin offering, handing the government a victory in its effort to regulate billions of dollars in cybercurrency offerings much as stocks are.

The ruling came in a criminal case against a man charged with promoting digital currencies…


L.A. Times – Business

Indian Bitcoin Ponzi Schemer Offers to Repay Initial Investments to Victims

July 19, 2018 |

Indian Bitcoin Ponzi Schemer Offers to Repay Initial Investments to Victims

The alleged bitcoin Ponzi kingpin, Amit Bhardwaj, has reportedly offered to pay back the initial investments in Indian rupees to those who lost money through his scheme. However, victims want the current value of their cryptocurrencies, not the initial investments. Zebpay, one of India’s largest crypto exchanges, has also been called in to help with the investigation.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Bitcoin Ponzi Kingpin Offers to Compensate Victims

Indian Bitcoin Ponzi Schemer Offers to Repay Initial Investments to VictimsAmit Bhardwaj, the founder of GBminers and Gainbitcoin, has offered “to pay back investors their initial investments in Indian rupees,” the Factor Daily reported Wednesday.

He has been accused of duping thousands of investors with promises of unrealistic returns on bitcoin investments. According to the news outlet, “dozens have filed police complaints in Pune, Mumbai, Nanded (Maharashtra), Kolkata, Delhi and others cities.” One of the victims was quoted as saying:

We want the returns in (today’s) cryptocurrency value and not the value of the cryptocurrency when we invested. Today, the bitcoin price is much higher than what it was when we invested. It is like Bhardwaj will keep the profits and just return the principal amount which is wrong.

Indian Bitcoin Ponzi Schemer Offers to Repay Initial Investments to VictimsSince the middle of 2015, more than Rs 1,000 crore (~US$ 146 million) is estimated to have been invested in the Bhardwaj-led Gainbitcoin empire, the publication detailed.

Citing that Zebpay, one of India’s largest crypto exchanges, was called in to help with the investigation, Inspector Jayram Paygude of the Pune Cyber Crime Cell explained to the publication:

Zebpay is the platform through which investment and sale of bitcoins were done in this case, which is why they were called for an enquiry.

Challenge Recovering Crypto

Indian Bitcoin Ponzi Schemer Offers to Repay Initial Investments to VictimsDuring an assembly session held last week, Nationalist Congress Party member Hemant Takle raised questions about the delay in recovering bitcoins “and the inability of the police to nab the remaining absconders in the case,” according to the news outlet. He also raised the question regarding the compensation that Bhardwaj’s victims will receive, pointing out the difference in the price of BTC now and at the time of their initial investments.

In response to Takle’s statement, Deepak Kesarkar, a member of the 13th Maharashtra Legislative Assembly, explained the difficulty in recovering some of the victims’ money which has been invested in bitcoin, stating:

Some of this amount is recovered by the police department through the e-wallets of these companies. The value of these digital currencies in the wallet will be recovered but it is difficult to recover the investment made in foreign companies.

Last week, the Indian state of Maharashtra announced that it is establishing a special unit to investigate all cases related to cryptocurrency, a move which follows the crypto banking ban by the Reserve Bank of India taking effect.

What do you think of Amit Bhardwaj offering to repay investors their initial investments? Let us know what you think in the comments section below.


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