Tag: cryptocurrencies

FTX’s Sam Bankman-Fried Gave Away His Flawed Decision-Making Months Ago

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Opinions expressed by Entrepreneur contributors are their own.

“Let’s say there’s a game: 51%, you double the earth out somewhere else; 49%, it all disappears. Would you play that game? And would you keep on playing that, double or nothing?” Tyler Cowen asked Sam Bankman-Fried, the now-disgraced founder of the bankrupt cryptocurrency exchange FTX, in his podcast back in March 2022.

The vast majority of us would not take the risk of playing that game even once. After all, it seems morally atrocious to take a 49% chance on human civilization disappearing for a 51% chance of doubling the value of our civilization. It’s essentially a coin flip.

But Sam Bankman-Fried isn’t like the majority of people. He responded to this question by telling the podcast host that he is quite willing to play that game — and keep playing it, over and over again. Cowen asked Bankman-Fried about the high likelihood of destroying everything by going double of nothing on a series of coin flips. Bankman-Fried responded that he was willing to make this trade-off for the possibility of coin-flipping his way into “an enormously valuable existence.”

Hearing that podcast made me realize the high-risk, high-reward decision-making philosophy that made his wealth possible — but also fragile. Indeed, he did end up in an enormously valuable existence — worth $26 billion at the peak of his wealth. He was the golden boy of crypto — lobbying and donating to prominent government figures, giving interviews to numerous high-profile venues and rescuing failing crypto projects. He was even nicknamed crypto’s J.P Morgan.

His decision-making philosophy worked out for him — until it didn’t.

FTX — the crypto exchange he founded, which represented the source of his wealth — filed for bankruptcy on November 11, along with 130 other companies associated with it. That filing stemmed from the revelation of some very shady bets and trades, which led to a run on the exchange and federal investigations for fraud.

Related: ‘I’m Sorry. That’s The Biggest Thing.’ Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files For Bankruptcy.

Bankman-Fried resigned as CEO as part of the bankruptcy filing. His wealth — all tied up in FTX and related entities — shrank to near zero. His coin-flipping luck finally ran out.

So what happened? As his financial empire was collapsing, Bankman-Fried tweeted: “A poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin.”

Certainly, we shouldn’t simply take Bankman-Fried’s word for the situation at hand, given the circumstances. Yet at least the atrocious bookkeeping part of the explanation and excessive optimism about user funds is supported by the only external investigation of the matter so far.

Binance, the world’s biggest cryptocurrency exchange, originally offered to buy out FTX as FTX was collapsing. However, after taking a look at FTX’s books, they saw that the problem was too big to solve. Binance backed out, citing revelations of “mishandled customer funds” and describing “the books” as “a nightmare” and “black hole,” according to a person familiar with the matter.

Messing around with customer funds is a big no-no. The Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Department of Justice (DOJ) are all investigating FTX’s handling of customer funds. Specifically, they’re examining whether FTX followed securities laws related to the separation of customer assets and trading against customers. Based on Binance’s statements when it backed out of the deal, and even Bankman-Fried’s own tweets, FTX very likely violated securities laws.

Indeed, Reuters reported that Bankman-Fried built what two senior employees at FTX described as a “backdoor” in FTX’s book-keeping system, created using bespoke software. This backdoor enabled Bankman-Fried to execute commands that would not alert others, whether at FTX or external auditors. The two sources told Reuters that Bankman-Fried “secretly transferred $10 billion of customer funds” from FTX to Bankman-Fried’s own trading company, called Alameda Research.

Bankman-Fried described his decision to move this money to Alameda as “a poor judgment call.” This coin flip landed the wrong side up. Double or nothing turned into nothing.

The underlying story here is of a fundamental failure of compliance and risk management. The inner circle of executives at FTX and related companies, such as Alameda, lived together at a luxury penthouse and had very strong personal and romantic bonds. CoinDesk reported several former and current employees at FTX described the inner circle as “a place full of conflicts of interest, nepotism and lack of oversight.” Naturally, this context of personal loyalty at the top makes it hard to have any oversight and risk management. It allows things like secret software backdoors, shady bookkeeping and mishandling of client funds to flourish.

Related: FTX’s Crypto Empire Was Reportedly Run By a Bunch of Roommates in the Bahamas Who Dated Each Other, According to the News Site That Helped Trigger the Company’s Sudden Collapse

Such nonchalance toward risk management stems fundamentally from Bankman-Fried’s decision-making philosophy of high-risk, high-reward bets. Bankman-Fried is unquestionably a visionary and financial genius. One of the most prominent venture capital firms in the world, Sequoia Capital, invested $210 million in his company, and a partner at the firm said that Bankman-Fried had a “real chance” of becoming the world’s first trillionaire. Yet it ignored the serious dangers of Bankman-Fried’s decision-making philosophy.

Bankman-Fried is not the only multi-billionaire who ignores risk management and oversight. Consider Elon Musk‘s approach to Twitter.

After taking over the company, he fired the vast majority of the existing executive team and replaced them with a select inner circle loyal to him. Then, he started experimenting with various Twitter features, most notably selling blue checkmark verification badges for $8 a month without any mechanism for confirming a user’s real identity.

Previously, Twitter only offered verification — for free — to those who had some public status and could prove it. After Musk’s offering, thousands of new accounts popped up with a blue checkmark impersonating real people and companies, such as an account that looked like Eli Lilly claiming that insulin is now free. Musk seemed very surprised by this outcome and paused the paid blue checkmark program in response.

Let’s be honest — the outcome for Twitter in introducing paid blue badges was clearly predictable, and many publicly predicted it would go badly. Yet there was no meaningful risk management and oversight check on Musk’s actions, just like there was none over Bankman-Fried.

The outcome of Musk’s risk-taking at Twitter might be bankruptcy, which would mostly be a loss for some big banks and investors. The outcome of Bankman-Fried’s risk-taking at FTX is definitely bankruptcy. That bankruptcy not only harms large investors — it also destroys the savings of thousands of ordinary people who held their money in FTX, given Bankman-Fried messed with customer funds.

Bankman-Fried’s misdeeds also harm the many worthwhile charitable causes to which he donated, such as pandemic preparedness. A committed philanthropist who already gave away many millions focusing on evidence-based charities, Bankman-Fried raised hopes for inspiring billionaires to give away their wealth rapidly, just like MacKenzie Scott. However, many charity projects to which he promised funding are now in limbo, with their funding withdrawn; the employees at Bankman-Fried’s granting organization, the FTX Future Fund, resigned due to the revelations of misdeeds at FTX.

Such harmful consequences from a lack of oversight and risk management highlight why it’s critical for founders to have someone who can help them make good decisions, manage risks and address blind spots. Such risk managers need to be in a strong position, able to go to the Board of Directors or other sources of insight. When I serve consulting clients in this role, I insist on being able to access this oversight body as part of my consulting contract. I almost never need to use this option, but having it available helps me rein in the double-or-nothing impulses of brilliant founders such as Bankman-Fried or Musk since they know I have that option.

An important takeaway: If you’re deciding to make an investment with a seemingly brilliant entrepreneur, do your due diligence on risk management and oversight. If it seems like the entrepreneur has no one able to rein in their impulses, be wary. They will take excessive risks, and you’re gambling rather than investing your money wisely.

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Gleb Tsipursky

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November 14, 2022
What Happened to FTX, Why is Crypto Tanking and What is The Future of Web3?
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Opinions expressed by Entrepreneur contributors are their own.
FTX today. Celsius and BlockFi yesterday. A seemingly unending upheaval of “crypto giants” who have ultimately failed to protect consumers, breaking trust in the developing world of Web3. Why does this keep happening, and will there be more?

First, the “why?” and then “who’s next?” (the short answer is ‘yes’ there will be more).

Why do these cryptocurrency giants keep falling apart? The answer is a combination of greed and incompetence on the part of crypto exchanges and lenders combined with improper (or lack of) regulation. It all comes down to “balance sheet assets.”

Related: ‘I’m Sorry. That’s The Biggest Thing.’ Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files For Bankruptcy.

Why balance sheet assets matter

In the US, we see crypto exchanges and others obtaining simple money-transmitter licenses and holding investor assets (cash, crypto, securities, NFTs, etc.) on their balance sheets. Offshore, these entities have either no licenses or money-transmitter-type licenses that permit them to hold customer assets on the balance sheet. This means those assets are the exchange’s property (or lender’s) property.

The customer’s assets become unsecured liabilities on that balance sheet. Now, since these are company assets, the company can use those for its benefit. They can lend them, invest them and do other things to juice corporate returns, which can go down in flames. And if a company goes out of business, others may have a superior claim on those assets over investors, including the government (taxes, fines), debt holders, and secured vendors. Customers get whatever might be left — if anything.

Related: Celsius Network Files For Bankruptcy, Customers Unlikely to Get Money Back

Balance sheets and FTX

In the case of FTX, they are short $10 billion, which means that they made investments with the assets on the balance sheet to try and make money for the company (not the customers.) Then those investments went south, and there aren’t enough assets to cover investor accounts (unsecured liabilities on the balance sheet).

The CEO said, “I’m sorry, I f***’d up,” which is true to the tune of $10 billion but never should have been permitted by regulation in the first place.

Regulated entities that hold customer assets

There are three types of “qualified” custodians — or firms that are regulated and required to take care of their customers:
1. Trust companies
2. Banks
3. Clearing brokers
Trust companies and clearing brokers can NOT hold customer assets on their balance sheets. They must keep them “FBO” (for the benefit of) customers. This means they can not comingle customer cash or other assets with company cash or assets. They have to be segregated. They can not be used or misused. And no third-party creditors have any claim on them.

If a trust company or clearing broker fails, their regulator ensures an orderly transfer of assets to another financial institution. 100% of assets.

Banks can hold customer assets on their balance sheet and invest them in making profits. This includes lending, stocks, bonds, life insurance pre-funds, credit card advances, letters of credit, etc., all using customer assets. If a bank makes terrible investments and fails, then, in this case, the FDIC steps in and makes up the difference between assets on the bank’s balance sheet vs. customer liabilities (up to $250,000).

This is why the FDIC has onerous regulations on what banks can and cannot invest in and how much of their balance sheet they can invest into any particular thing, no matter how good it seems. It is tightly restricted, controlled and regulated.

Related: 6 Things Good and Bad You Should Consider Before Investing in Cryptocurrencies

Regulated entities and non-traditional assets

Clearing brokers generally don’t hold private securities or tokenized assets (including cryptocurrency). There are a variety of deliberate and nuanced regulations that make it impractical for them to do this. Banks can not hold tokenized assets on their balance sheets, only in their trusts. While very few of those have the common forms of cryptocurrency (Bitcoin, Ethereum), none hold the vast array of cryptocurrency, private securities, real estate interests or tokens representing rewards programs, health care records, event tickets, collectibles, etc. That leaves trust companies as the only qualified custodian.

Money transmitters — a risky regulatory loophole

There is currently a regulatory loophole resulting in billions of dollars in consumer losses. A money transmitter is a state-by-state licensed entity originally intended for firms moving small amounts of cash point-to-point between people (which might temporarily land in the money transmitter’s account).

Money transmitters carry these customer assets on their balance sheet instead of trust companies and clearing brokers who do not. Thus, the crypto industry has leveraged this loophole to get “licenses,” enabling them to hold assets on their balance sheets, and they can do stupid things with other people’s money. The regulation allows for this behavior.

So, who is next?

Ah, the multi-billion dollar question. There will be others. FTX is a giant shoe, as were Celsius and BlockFi. Brace yourself for more. By way of example, let’s talk about Coinbase.

Coinbase issued a statement saying, “a note to the financial statements explains that as of June 2022, Coinbase has taken all customer assets onto its own balance sheet… it still has $12bn of its own and customers’ cash (both on its balance sheet).”

The first thing that hit me when I read that was, “why the heck would they do that?!” They own a trust company, so why wouldn’t they keep all customer cash and crypto at their trust company to ensure it’s safeguarded and protected? Why would they put all those assets on the exchange, which only has money-transmitter licenses?

I can only imagine that they can’t use other people’s money and crypto for their benefit if it’s at the trust company, but only if it’s at the exchange. Maybe there is something else, but I don’t see it. So the natural question is, “what exactly are they doing with those customer assets?” Possibly no different than what FTX was doing, maybe not. Without proper regulation, we can’t know for sure.

Related: The US Government Monitors Crypto Markets as FTX’s Saga Continues to Unfold

They might claim the assets are protected under UCC Article 8. Still, my understanding is that the protection is meant to apply to securities and, even then, attempts to put customer balance sheet liabilities ahead of other creditors on available assets in the event of company failure. It does not prevent the company from using customer cash and assets for its own interests and potentially losing those (like FTX.) So Article 8 wouldn’t matter much even if it is held to be applicable in a disaster scenario.

And others?

Yes, any firm operating as a simple money transmitter, what I call a pseudo-custodian, is capable of doing these things — which is all crypto exchanges that don’t use a trust company, whether their own or independent, all crypto lenders, etc.

I respect the teams at Coinbase, Binance.us, Zero Hash, Bittrex, and other such money transmitters. I have no idea if they’ve used or misused customer assets or done anything intentionally ignorant or wrong. Maybe they are being as safe as they know how. But when you are permitted by lax regulation to use customer assets for your benefit, greed almost always prevails.

Related: White House on Crypto: More Oversight is Needed to Avoid ‘Harming’ Americans

Protect yourself and your customers

How? Easy. If you have cash, crypto, NFTs, or other assets at any of these pseudo-custodians who operate with money-transmitter licenses, get it out of there. Now. Right now. Move it to a qualified custodian or self-custody. If you are a business working to bring crypto, digital assets, or other Web3 initiatives to your customers: only partner with a qualified custodian.

Related: Solana Feels Ripple Effect of the FTX Collapse, Crypto.com Halts Solana, USDC and USDT Withdrawals and Deposits

Next steps for the industry

Regulation is (finally) coming. Legislation is coming. We, as an industry, don’t want another Dodd-Frank or Sarbanes-Oxley knee-jerk reaction that overcorrects a problem. The CEO of Fortress Trust, Albert Forkner is going out to work with members of Congress, including Senators Lummis and Gillibrand and Representatives McHenry and Waters, as they craft legislation. They will also work with the SEC, CFTC, CFPB and other government agencies on sensible regulation.

In the meantime, we’re advocating for the states to modify their money-transmitter regulations to immediately retract and cancel licenses from any out-of-state entity other than trust companies, banks and clearing brokers.

Regulation leads to the blue ocean for Web3

Not in the slightest. The tokenization of rewards programs, real estate, healthcare records, insurance receivables, securities, event tickets, estate records, music, film, sports, photography, books, art and everything else electronic in the world is continuing without delay. These things — tokenized — so the blockchain acts as the ledger of record, are not cryptocurrency. Every company has Web3 initiatives, which will utterly transform the world as the internet did beforehand. Blue ocean continues for those in this space working to build for scale.
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Scott Purcell

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November 14, 2022
FTX bankruptcy is ‘somebody running a company that’s just dumb-as-f___ing greedy,’ says Mark Cuban

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Billionaire Dallas Maverick’s owner Mark Cuban recently offered his perspective on the implosion of crypto platform FTX late this week.

“‘That’s somebody running a company that’s just dumb-as-fucking greedy.’”

— Mark Cuban

Cuban, speaking on Friday at a conference in Washington, D.C. hosted by Sports Business Journal, shared the view that avarice was at the root of the downfall of one-time crypto darling Sam Bankman-Fried, whose firm FTX Group just filed for chapter 11 bankruptcy.

“So what does Sam Bankman [Fried] do, he’s just–‘gimme more, gimme more, gimme more.’ So I’m gonna borrow money, loan it to an affiliated company and hope and pretend to myself that the FTT tokens that are in there on my balance sheet are gonna to sustain their value.”

Check out: Mark Cuban says buying metaverse real estate is ‘the dumbest shit ever

FTX’s collapse marks a stunning turnabout for a company, which was once valued at $26 billion, and whose founder, Bankman-Fried was viewed by many in the crypto industry as a venerable actor in the Wild West of digital exchanges.

On Thursday, the 30-year-old entrepreneur tweeted: “I f—ked up, and should have done better,” referencing the collapse of his exchange.

Embattled FTX, short billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run. FTX, an affiliated hedge fund Alameda Research, and dozens of other related companies also filed a bankruptcy petition in Delaware on Friday morning. Boasting a nearly $16 billion fortune recently, Sam Bankman Fried’s net worth had all but evaporated in the wake of the FTX implosion, according to the Bloomberg Billionaires Index.

The price of FTX’s native token FTT went down about 88.8% over the past seven days to around $2.74, according to CoinMarketCap data.

The U.S. Justice Department and the Securities and Exchange Commission are looking into the crypto exchange to determine whether any criminal activity or securities offenses were committed.

Regulators and are examining whether FTX used customer deposits to fund bets at Alameda Research, a no-no in traditional markets, according to reports.

Cuban, who is one of the stars of the investing show “Shark Tank” and owns the NBA’s Dallas Mavericks, is a big investor in crypto and blockchain-related platforms. According to a CNBC report, he has said that 80% of his investments that aren’t on Shark Tank are crypto-centric.

See: Tom Brady, Steph Curry and Kevin O’Leary set to lose big from FTX bankruptcy filing

For his part, Cuban is part of a class-action lawsuit accused of misleading investors into signing up for accounts with crypto platform Voyager Digital, which filed for bankruptcy in July. The suit alleges that Cuban touted his support for Voyager and referred to it “as close to risk-free as you’re gonna get in the crypto universe.”

Cuban mentioned Voyager in his Friday interview. Representatives for the billionaire investor didn’t immediately respond to a request for comment.

The Mavericks owner took to Twitter on Saturday to say that the crypto implosions “have been banking blowups. Lending to the wrong entity, misvaluations of collateral, arrogant arbs, followed by depositor runs.”

Cuban’s net worth is $4.6 billion, according to Forbes.

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November 12, 2022
FTX’s Sam Bankman-Fried: ‘I was shocked to see things unravel the way they did’

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Sam Bankman-Fried, co-founder at crypto exchange FTX, tweeted Friday that he was “shocked to see things unravel the way they did,” after he quit as chief executive and the company and its related entities filed for bankruptcy.

See: Sam Bankman-Fried resigns as CEO of FTX as cryptocurrency exchange files for Chapter 11 U.S. bankruptcy

The bankruptcy “doesn’t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly, and can be consistent with other routes,” Bankman-Fried tweeted Friday.

Bankman-Fried has seen his net worth plunge to almost zero from $16 billion in less than a week, according to Bloomberg Billionaires index.

FTX was once the third largest cryptocurrency exchange by trading volume. Bitcoin
BTCUSD,
+0.10%
fell 3.4% Friday to around $16,838, hovering at around a two-year low, according to the CoinDesk data.

A representative at FTX didn’t respond to a request seeking comment.

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November 11, 2022
Bitcoin falls to 2-year low, other cryptos down after market reacts to FTX bankruptcy news

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FTX, the crypto exchange, filed for voluntary Chapter 11 bankruptcy in a Delaware court on Friday, and chief executive Sam Bankman-Fried has resigned.

Following the news, here is how prices are doing for major cryptocurrencies, according to CoinDesk data.

Bitcoin BTCUSD, -4.92% The price for Bitcoin was around $19,350 before the announcement of the potential FTX/Binance deal on Tuesday. The price jumped to $20,590 in less than an hour after the announcement. But dropped to a 2-year low of $17,484. Currently, the Bitcoin price is $16,907.19, a change of -5.04% over the past 24 hours.

Ethereum ETHE, -9.66% Currently, the Ethereum price is $1,252.60, a change of -6.60% over the last 24 hours. The price of Ethereum was around $1,438 before the announcement, and peaked at $1,562 under an hour after. Later on Nov 8, the price dropped to $1,289.

FTT: Today the price of FTT, which is the FTX token, is $2.74, down 20.37% in the last 24 hours, according to CoinMarketCap data. At the beginning of the week, on Nov 7, the price was around $22.06.

Solana: Currently, the price is $17.34, a change of 2.91% over the past 24 hours. The price of Solana before the announcement was around $27.69, and peaked at $31.29 shortly after the announcement.

Binance Coin: The Binance Coin price is $285.74, a change of -7.02% over the past 24 hours. The Binance Coin price was around $322 before the announcement that Binance might acquire FTX on Nov 8.

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November 11, 2022
The $26 billion rise and fall of FTX crypto king Sam Bankman-Fried

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Just six months ago, CEOs, celebs and world leaders like Bill Clinton and Tony Blair flocked to him, gathering at a Davos-like conference he hosted in the Bahamas where he lives as one of the most outspoken evangelists for the power of the blockchain.

Fast forward to Sunday and Bankman-Fried’s crypto empire came crashing down, the victim of an old-fashioned bank run that quickly exposed the weaknesses of the new finance system he had championed.

Almost overnight, Bankman-Fried’s cryptocurrency exchange, FTX, had gone from being valued at $32 billion to worthless, leaving scores of investors scrambling to get their deposits back and triggering probes in the U.S. by the Securities and Exchange Commission, the Commodities Futures Trading Commission and the Department of Justice, according to reports.

On Thursday, the 30-year-old Bankman-Fried took to Twitter to level with his clients.

“I fucked up, and should have done better,” he wrote.

A very rapid rise

It took less than five years for Bankman-Fried to build a personal fortune that was estimated at its highest point to be more than $26 billion, making him among the richest people in the world.

His schlubby, boyish appearance — ill-fitting t-shirts, gym shorts and a mop of curly hair — made him look more like a college student ripping bong hits in the basement of a frat house than a finance guru, but fit nicely with the anti-establishment ethos that appealed to crypto enthusiasts.

The son of law professors at Stanford University, Bankman-Fried was a wunderkind from an early age. He studied physics and mathematics at the Massachusetts Institute of Technology.

After a stint as an ETF trader for Jane Street Capital, a highly respected Wall Street firm that is known for attracting genius quantitative traders, Bankman-Fried became interested in the concept of effective altruism, a philosophy that focuses on using reason and evidence to find solutions that benefit the most people possible. In 2017, he launched Alameda Research, a quantitative trading firm focused on digital currencies.

Over the next year, he began building his fortune through arbitrage trading of Bitcoin
BTCUSD,
+11.10%
between exchanges in the U.S. and Japan, where prices were often slightly higher. In 2019, Bankman-Fried launched the crypto exchange FTX.

The timing was fortuitous: as the COVID-19 pandemic spread across the globe the following year, interest in cryptocurrencies among people exploded. FTX took off and brought in the big-name celebrity endorsers and partners, like professional athletes Tom Brady and Steph Curry.

Bankman-Fried soon found himself feted by some of the biggest institutions in finance, attracting investment from the biggest names on Wall Street and beyond like Softbank
9984,
-2.65%
Group, Sequoia Capital, Blackrock
BLK,
+13.26%.
Tiger Global Management and Thoma Bravo. He even raised money from billionaire hedge fund legends Paul Tudor Jones and Israel Englander.

Soon, FTX was among the biggest players in the industry.

The face of crypto

Despite his ballooning wealth, Bankman-Fried maintained the appearance and lifestyle of a teenage gamer. He moved to the Bahamas, where he reportedly lived in a penthouse apartment with 10 roommates.

On Zoom calls, he would often play video games while talking — his favorite game being League of Legends. Profiles of him often noted that he kept a bean bag just feet from his desk to sleep on.

What set Bankman-Fried apart from other crypto tycoons, was his professed interest in working with regulators to create a more robust framework around the nascent industry and treat it more like a traditional finance network.

To that end, Bankman-Fried appeared before Congress to try to explain to skeptical U.S. lawmakers how the crypto industry worked. He also said he welcomed regulation, not always a popular position in the crypto world.

“FTX believes [government agencies] could play an even more prominent role in the digital-asset ecosystem and bring greater investor protections by closing some regulatory gaps,” he said before a senate panel in February. “FTX believes that such efforts would combine the best aspects of traditional finance and digital-asset innovations.”

Bankman-Fried even put his great wealth to play in politics, becoming a major campaign donor for the Democratic party. In 2020, he was one of President Joe Biden’s largest single donors and spent nearly $40 million on political campaigns this year for the midterm elections, according to campaign filings.

As cryptocurrencies have experienced significant declines in prices this year, triggering the collapse of several operations, Bankman-Fried arose as a savior, buying up several failing partners as positioning himself as a kind of Robin Hood for the industry.

A swift collapse

For as fast a rise to the top of the world that Bankman-Fried enjoyed, the fall was just as rapid.

On Sunday, Changpeng Zhao, the CEO of FTX’s competitor, Binance, and an archrival of Bankman-Fried’s, announced on Twitter that his firm, the world’s biggest cryptocurrency exchange, was liquidating its sizable holdings of FTT, the coin issued by FTX, “due to recent revelations that have come to light.”

Bankman-Fried accused Zhao of spreading false rumors. But the damage was done.

Binance’s move triggered a massive selloff with customers seeking to redeem some $5 billion in deposits. FTX didn’t have it and redemptions froze up.

On Tuesday, Bankman-Fried announced that FTX had reached a tentative agreement to be acquired by Binance, due to a “significant liquidity crunch.” The turmoil set off broad declines among several of the most popular cryptocurrencies and even spilled into the world of traditional finance, sending markets tumbling.

The next day, the chaos increased, with reports that FTX and Bankman-Fried were under investigation by several U.S. agencies. By the end of the day, Binance said it was walking away from the deal because due diligence had revealed that “the issues are beyond our control or ability to help.”

Binance’s deal seemed like the only thing preventing FTX from potentially collapsing. “At some point I might have more to say about a particular sparring partner,” Bankman-Fried tweeted on Thursday. “For now, all I’ll say is: well played; you won.”

Also on Thursday, the Wall Street Journal reported that Bankman-Fried had been using some customer deposits to fund risky bets by his Alameda Research firm, setting FTX up for collapse.

With the Binance lifeline gone and with few options available, Bankman-Fried told investors he needed $8 billion or more to plug the hole in FTX’s books, according to reports.

On Twitter, Bankman-Fried said he would focus all his efforts on making sure depositors got their money back. He also tried to explain FTX’s collapse, saying “a poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was way lower.”

Said Bankman-Fried: “My #1 priority–by far–is doing right by users,” he wrote. “Right now, we’re spending the week doing everything we can to raise liquidity. I can’t make any promises about that.”

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November 10, 2022
‘Crazy and scary’: Here’s what Nithin Kamath has to say about the crypto world

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Zerodha founder and CEO Nithin Kamath has hailed the Indian capital market infrastructure and regulations and said the entire system does not get enough credit for being among the best globally. In a LinkedIn post that has gone viral, Kamath talked about the crypto world and that brokers and exchanges can act as banks in most markets.

He added, “In India, all securities are held by the customer at the depository. All unused funds are sent back monthly/quarterly and one client’s funds can’t be used to fund another. In most markets, brokers can hold customer securities and funds indefinitely and use them any way they want.”

The Zerodha founder went ahead and commended the Securities and Exchange Board of India (SEBI) for their efforts aimed at protecting the interests of the retail investors by reducing risks and making markets safer.

Kamath’s comments come after a deal between crypto exchanges FTX and Binance collapsed. The deal was touted as an emergency rescue in the world of cryptocurrencies as investors pulled their money back from risky assets.

Binance said in a statement accessed by news agency Reuters, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”

After this, FTX CEO Sam Bankman-Fried said in a message to employees, “I’m working, as quickly as I can, on the next steps here. I wish I could give you all more clarity than I can.”

Meanwhile, cryptocurrency market-cap saw a decline of 7.82 per cent to $835.16 billion. Key tokens such as Bitcoin and Ethereum also fell to $16,612.50 and $1,181.61 respectively. Market cap of Bitcoin and Ethereum stands at $319.67 billion and $145.09 billion at the time of writing this story, according to coinmarketcap.com.

Also read: FTX CEO looking at all options as Binance deal collapses

Also read: No IIM or Harvard: How Nithin Kamath built Zerodha without a management degree

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November 9, 2022
Crypto investors rattled as Binance abandons its proposed acquisition of rival FTX

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Binance, the world’s largest crypto exchange, is abandoning its proposed acquisition of the non-U.S. assets of rival FTX, amid the latter’s liquidity crunch.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” according to a tweet by Binance’s official account Wednesday.

“Our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance wrote.

Executives at Binance have found a gap, likely in billions and possibly more than $6 billion, between the liabilities and assets of FTX, Bloomberg reported Wednesday, citing an anonymous source familiar with the matter.

Representatives at Binance and FTX didn’t immediately respond to a request seeking comments.

On Tuesday, Changpeng Zhao, Binance’s chief executive, said the exchange had signed a letter of intent to acquire FTX.com, a separate entity from FTX.US, after FTX “asked for help.”

Read: Bitcoin falls to two-year low after crypto exchange Binance proposed to buy rival FTX

Investors are worried about any contagion, as concerns over FTX’s solvency spilled over to the already battered crypto market. BitcoinBTCUSD plunged Wednesday to as low as $16,863, the lowest level since November 2020.

FTX is the third largest crypto exchange by trading volume, according to CoinMarketCap.

Also read: Crypto billionaire Sam Bankman-Fried’s net worth could shrink by over $13 billion

See also: FTX problems mean big headaches for its private equity investors

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November 9, 2022
Where Are Markets Headed? Six Pros Take Their Best Guess

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A massive selloff in bonds. A plunge in tech stocks. The implosion of cryptocurrencies. The highest inflation in four decades.

Amid a brutal and uncertain climate, we asked six heavyweights in the world of finance to share their thoughts on the state of the markets, how they have handled this year’s carnage and what they anticipate in the future.

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October 28, 2022
The Benefits of Crypto Education for Your Business

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Opinions expressed by Entrepreneur contributors are their own.

In 2022, the cryptocurrency market shuddered literally in all directions. Crypto‘s market cap fell below $1 trillion, and Bitcoin dropped 65% from an all-time high. But despite these circumstances, a new report from blockchain intelligence firm Chainlaysis has found that crypto adoption has slowed less than expected despite a bearish start of the year for the cryptocurrency market. In fact, it’s still above pre-bull market levels from 2019.

Some countries dominating the adoption index have different socioeconomic situations, from lower middle income to above median income and high incomes. Some of the countries include Vietnam, the Philippines, Ukraine, India, Brazil, Colombia, Ecuador, Thailand, The United States and The United Kingdom.

Data suggest that people, startups and large companies have stuck with cryptocurrencies and blockchain despite the crypto winter. They continue to pour significant portions of capital into digital assets and their underlying technology. And no surprise: blockchain offers numerous advantages and benefits not only to individuals but also to entrepreneurs and businesses from different industries.

The benefits that crypto and blockchain bring to the table can become an effective solution for some of the pain spots for today’s businesses and their customers, but this requires extensive crypto education.

Related: How Crypto Education Can Boost the FinTech Industry

What Is cryptocurrency?

The most popular Google searches about cryptocurrencies are: “what is cryptocurrency,” “how to invest in crypto,” “how does crypto work,” etc. After almost 15 years since being created, there’s still a lack of educational content and resources for people and institutions to understand and adopt cryptocurrencies and blockchain technology.

This lack of crypto education leads people to make uninformed decisions when investing in cryptocurrencies, usually ending in a somewhat worse performance than they initially thought. For example, a recent survey shows that almost 50% of Americans who have invested in crypto say it has “done worse than expected.” Despite this, over 60% of US parents believe children should learn about cryptocurrency in schools.

Related: 5 Things to Know Before You Invest in Cryptocurrency

Why crypto education is necessary for crypto adoption

To reach mass-scale adoption, it’s necessary to spread financial literacy for crypto assets and blockchain education to understand how this technology and the overall crypto space work —and make education more accessible.

A more educated user is less likely to fall for the usual traps in the crypto world, such as rug pulls or phishing scams. Businesses can benefit from exploring and adopting blockchain technology and avoid certain pain spots.

For instance, the immutable nature of blockchain doesn’t allow chargeback; transactions are instant and irreversible. And chargeback is often used as a tool to commit friendly fraud, a significant pain for merchants due to false positives, operation costs, chargeback fees, and fines, which had caused small and mid-size businesses to spend over $35 billion in 2021.

Should businesses be crypto-educated?

Businesses can scale internationally via low-cost and fast international payments using cross-border blockchain-based solutions. Moreover, the Ethereum Merge signifies a significant step for the blockchain to become more scalable, cost-efficient, and energy-efficient for its users and enterprises seeking to build on its ecosystem.

The Merge successfully transitioned Ethereum from proof-of-work (PoW) to proof-of-stake (PoS). This means the network doesn’t need to rely on miners to create and validate transaction blocks but on a set of network nodes that stake ETH to validate and create those blocks, reducing energy consumption by 99%.

Related: It’s Time To Get Interested In Ethereum Again

How are institutions and universities spreading crypto education?

Luckily enough, numerous initiatives are being taken by crypto institutions, universities and even countries across the globe, not only on a financial level but on a technical level as well. Popular examples of universities are the Royal Melbourne Institute of Technology, and the Massachusetts Institute of Technology (MIT). From an early age, crypto education should be accessible to everyone interested in this sector. It will guarantee future prosperity and accelerated adoption. Global universities can help society to get educated about crypto.

Blockchain firms are also funding numerous universities to help accelerate research and growth. Other examples are the Algorand Foundation, which invested over $50 million in funding for a virtual research program.

As mentioned earlier, the Philippines is one of the leading countries in the crypto adoption rate, and one of the main reasons is that nearly 80% of Filipinos are unbanked. Philippine universities will offer free courses on Bitcoin and other cryptocurrencies after a senate hearing discusses financial inclusion and regulatory frameworks for the country.

Several crypto institutions offer vast educational content on all things crypto. These and other companies also provide training courses and interactive videos where people can learn about crypto and earn rewards by completing quizzes.

Lack of crypto education prevents mass adoption

The lack of crypto education is what hinders crypto adoption after almost 15 years of being created. The good side of the story is that institutions are taking numerous initiatives, firms, universities, and countries worldwide. The next two or three years are primordial to massively spread crypto and blockchain education and resources so users, developers, startups, and businesses of all sizes can start investing in it too.

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October 26, 2022
Twitter shares slump after report that the U.S. mulls national-security reviews for some of Elon Musk’s ventures

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Shares of Twitter plunged in premarket trade on Friday after a report Biden administration officials are considering subjecting some of Elon Musk’s ventures to national-security reviews.

Twitter
TWTR,
+1.18%
shares plunged 9% to $47.64 in premarket trade, below the $54.20 per share buyout price.

Bloomberg News reported late Thursday that some U.S. officials have become concerned in recent weeks by Musk’s Russia-friendly tweets and his threat to cut off Starlink satellite internet service to Ukraine. The Tesla
TSLA,
-6.65%
and SpaceX CEO’s pending $44 billion acquisition of Twitter has also reportedly drawn concerns because of its foreign investors, including a Saudi prince, Binance Holdings — a crypto exchange that was initially based in China — and Qatar’s sovereign wealth fund.

Citing anonymous sources familiar with the matter, Bloomberg said discussions are still in the early stages and officials are trying to figure out what regulatory tools are available to them. One option could be a national-security review by the Committee on Foreign Investment in the United States, the report said.

Separately, Bloomberg also reported late Thursday that Musk’s lawyers and bankers are preparing paperwork for the Twitter deal to be completed ahead of a Oct. 28 deadline, and that relations between Musk and Twitter have turned cordial rather than adversarial.

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October 21, 2022
Elon Musk wants to move forward with his purchase of Twitter. Here’s how some Twitter users reacted.

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Elon Musk sent a letter to Twitter
TWTR,
+22.24%
indicating he intends to move forward with his original proposal that he acquire the company for $54.20 a share, according to a filing from the Securities and Exchange Commission.

The Tesla Inc.
TSLA,
+2.90%
CEO agreed to buy the social media company back in April for $44 billion, but in recent months said he wanted to terminate the deal, publicly citing concerns about bots on the platform. The two sides had been entrenched in a legal battle over the past few months, and a Delaware Chancery Court judge was scheduled to hear arguments on the case in October, a case Wedbush analyst Daniel Ives said Musk was “highly unlikely” to win.

See also: College students who got low grades complained about their ‘dismissive’ professor. Then NYU fired him.

Twitter users reacted to the news on Tuesday afternoon, many of them joking about a potential resolution to the seemingly never-ending Elon Musk Twitter saga.

One Twitter user said she believes Musk will look to reinstate the account of former President Donald Trump, which was banned shortly after the attack on the Capitol on Jan. 6, 2021. Trump has claimed he won’t return to Twitter even if the Musk deal is executed, and he’ll continue to post on his platform, Truth Social.

See also: Trump’s Facebook ban may end as soon as January 2023, Meta executive says

“We’re doing a big platform right now, so I probably wouldn’t have any interest,” the former president said.

Another user tweeted that supporters of the meme crypto dogecoin
DOGEUSD,
+1.11%
are excited by Musk’s move to proceed with the deal. Musk has touted dogecoin on several occasions in the past few years.

Similar to bitcoin, dogecoin is a peer-to-peer, open-source cryptocurrency. It trades under the ticker symbol “DOGE” and features the face of the shiba inu from the popular Doge meme as its logo. Dogecoin was up as much as 9.16% after the Bloomberg news was published.

Musk has not publicly commented on the report, but one Twitter user pointed out that he tweeted about his satellite internet project Starlink after the news broke, but did not mention Twitter in any way.

A report from The Wall Street Journal stated Musk’s legal team relayed the proposal to Twitter’s team “overnight Monday.”

Shares of Tesla Inc. dipped after the news, and are now up just 1.31% during Tuesday’s trading. Shares of the EV maker were up as much as 5.65% on the day before the Musk news.

See also: SPAC backing Trump’s Truth Social hit by news Musk is again offering to acquire Twitter at original price

The news comes a few days after hundreds of text messages from Musk’s phone were made public as evidence in Twitter’s lawsuit.

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October 4, 2022
New Monkey Charity-Focused NFT Community Partners With Leading Environmental Advocacy Group

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Conservation NFT Launch: Tiki Monkeys Partners With Paso Pacifico for Monkey Conservation in El Salvador and Throughout Central America

Press Release
–

Mar 14, 2022

GARDEN GROVE, Calif., March 14, 2022 (Newswire.com)
–
For this up and coming Earth Day, April 22, 2022, Tiki Monkeys, a new monkey charity-focused NFT (Non-Fungible Token) community, is going to start minting 10,000 unique art NFTs and donate 20 percent of the proceeds directly to Paso Pacifico, a nonprofit working to protect critically endangered monkeys in El Salvador and throughout Central America.

Tiki Monkeys, a new NFT community, is partnering with Paso Pacifico.

The Tiki Monkeys believes in using art to connect, increase awareness, and inspire people to build a community that together will drive improvements in conservation of monkeys.

The Presale will begin March 22 and 50 percent of the 300 NFT proceeds will go to Paso Pacifico to help with the conservation of monkeys. The Public Release will be on Earth Day, April 22, where there will be a collection of 10,000 randomly generated Tiki Monkeys NFTs. 20 percent of the proceeds will be donated to Paso Pacifico. Additionally, 3 percent of secondary market sales will be donated to Paso Pacifico in perpetuity.

The Tiki Monkeys NFT project was created by Karl Post, a crypto fanatic since 2017. With 30 plus years of software development experience, he decided to put purpose behind the NFT movement and help drive change by connecting with Paso Pacifico to help with the charity efforts they are doing in El Salvador and throughout Central America.

“The launch of Tiki Monkeys supporting this charity is the only way we could imagine joining the NFT community. It’s important that we’re transparent and communicative with how we’re supporting monkey conservation, so we couldn’t be happier that we’re donating proceeds from our mint directly to Paso Pacifico,” says Post, Tiki Monkeys Creator.

About Tiki Monkeys: Tiki Monkeys is a friendly NFT community focused on helping monkey conservation charities. We believe huge movements are made up of tiny steps. With the support of the Tiki Monkeys community, we will help drive change in how NFTs can make a difference.

For more information, visit https://www.tikimonkeys.com and follow Tiki Monkeys here:

About Paso Pacifico: Paso Pacifico has worked since 2005 to protect spider monkeys, sea turtles, and other species with broad habitat needs in Central America. Its mission is to protect biodiversity where people already live, and to involve and empower local people. Their holistic, forward-looking methods incorporate science to help nature and people thrive together. Their programs have planted over 1 million trees, released over 100,000 sea turtles, increased the local populations of spider monkeys and other critically endangered species, helped start dozens of local eco-businesses, and taught over 1,000 children to help save the planet.

For more information, visit www.pasopacifico.org and follow Paso Pacifico here:

Media Contact: Karl Post / karl.post@TikiMonkeys.com

Source: Tiki Monkeys

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March 14, 2022
Bitcoin IRA Revolutionizes Retirement Industry With Its Cryptocurrency Based Investment Options

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Bitcoin IRA is the only company offering cryptocurrency-based retirement investment portfolios with Bitcoin and Ethereum.

Press Release
–

updated: Jun 28, 2017

Los Angeles, USA, June 28, 2017 (Newswire.com)
–
BitcoinIRA.com, the only company offering cryptocurrency-based retirement investment portfolios, has negotiated first-of-its-kind agreements with leading retirement and cryptocurrency companies to allow customers to invest in Bitcoin or Ethereum with their IRAs and 401ks.

Bitcoin IRA’s accomplishments with leading retirement custodian Kingdom Trust and leading cryptocurrency wallet BitGo™, represent a first for the industry. Together, this partnership creates a secured multi-signature encryption wallet from BitGo™ that enables Kingdom Trust to provide custodial services with a self-directed IRA.

The COO of Bitcoin IRA, Chris Kline, said,

“These are unique set-ups that no other retirement custodian is able to replicate. Our partnership with BitGo and our custom configuration with other partners provides a secure, one-of-a-kind investment opportunity for individuals that can’t be replicated in the marketplace.”

Bitcoin IRA has been featured in leading publications including the Wall Street Journal, QZ.com, Barron’s, Investopedia and popular Bitcoin publishers CoinDesk.com and CoinTelegraph.com.

In one of the articles, Drew Pierson from CoinDesk wrote,

“Cryptocurrency IRAs are no different than IRAs invested in more traditional options like stocks and bonds. The firm Bitcoin IRA is the only option for investors who wish to hold cryptocurrencies in their IRAs directly.”

Recently, Bitcoin IRA also launched Ethereum IRA, a similar investment product for Ethereum, the second-largest cryptocurrency. The company has been evaluating releasing new cryptocurrencies on its proprietary SDIRA platform, along with new features being driven by demand from existing stakeholders and clients.

About Bitcoin IRA

Bitcoin IRA is the only Bitcoin-based retirement investment portfolio that allows people to invest with actual bitcoins for their IRA or 401(k). The platform works with leading fintech professionals to provide secure, high-quality Bitcoin investments.

Bitcoin IRA offers both traditional and Roth IRA options, which offer the same tax incentives as regular IRAs and 401(k)s. The company differentiates itself from other bitcoin investment products in multiple ways. Unlike Bitcoin ETFs and investment funds, Bitcoin IRA offers an opportunity for individuals to invest in real bitcoin at a much lower fee. In addition, investors keep total control over their Bitcoin deposits, with no holding fees and the ability to withdraw once the term is over.

Learn more about Bitcoin IRA and Ethereum IRA at – BitcoinIRA.com
Bitcoin IRA on CoinDesk – http://www.coindesk.com/traditional-iras-coming-world-bitcoin

Media Contact

Contact Name: Kristy Velazquez
Contact Email: kristy@bitcoinira.com
Location: Los Angeles, USA
Phone: +1.877.936.7175

Bitcoin IRA is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This press release is for informational purposes only.

Source: Bitcoin IRA

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June 28, 2017
Ethereum Surges 314% as Bitcoin IRA Delivers Stellar Self Directed IRA Returns to Clients

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Press Release
–

updated: May 31, 2017

LOS ANGELES, Calif., May 31, 2017 (Newswire.com)
–
Ethereum is $200, and Bitcoin is over $2,300. Both of these digital currencies started small, offering investors a chance at millions for less than $1.

In just 32 days since the launch of Ethereum IRA, the digital currency also known as Ether rose in value from $48 to its current price of $202, delivering investors a whopping 314% return. Ethereum has piqued the interest of Fortune 500 companies and is considered by many investors and traders to be the hottest altcoin on the market right now.

“Our clients are ahead of the curve; they are early adopters eyeing a massive opportunity as Ethereum and others become the digitization of efficiency in our common lives,” said Chris Kline, COO of Bitcoin IRA.

The weekend rise in Ethereum price may have moved lock in step with key partnerships and developments announced over the weekend. Below are the most common reasons that investors cite to justify a $1,000 Ethereum coin:

The People’s Republic of China wakes up to Ethereum

China’s leading bitcoin and altcoin exchange, Huobi, announced it would offer Ethereum on Wednesday, May 31st, 2017. Huobi is one of the largest exchange players in China, if not the world. If history is any guide, one just needs to look back to when Litecoin started trading on Coinbase; almost immediately, its value skyrocketed.

Ethereum and the Trillion-Dollar Freelancer market

eDEV.one, a remote worker wage payment, and job platform announced its plans to issue a part of its token sale on Danish exchange OpenLedger. Freelancers now makeup 35% of U.S. workers and collectively earned $1 trillion in the past year, according to the Freelancers Union, based in New York City, and the large freelancing platform Upwork, headquartered in Silicon Valley.

Toyota and MIT Partner to accelerate self-driving vehicles

Toyota Motor company has announced a tie-up with MIT to utilize blockchain and distributed ledger technology to speed up the development of autonomous driving technology.

Storj Labs raises millions to disrupt Dropbox

The leading decentralized cloud storage provider has concluded a token sale for its Ethereum-based application token. The platform met its goal of $30 million in just seven days.

The fact that Ethereum continues to be adopted by mainstream exchanges, companies, and initiatives signifies its long-term value.

In Bitcoin IRA’s first year since launch, the company’s innovative retirement platform was featured in the Wall Street Journal, Barron’s and Investopedia for making Bitcoin an easy option for retirement investing. It has also expanded its cryptocurrency offering by adding a secure way to invest in Ethereum as well as Bitcoin.

About Bitcoin IRA

Bitcoin IRA is the only Bitcoin-based retirement investment portfolio that allows people to invest with actual Bitcoins and Ethereum for their IRA or 401(k). The platform works with leading fintech professionals to provide secure, high-quality Bitcoin investments.

Bitcoin IRA offers both traditional and Roth IRA options, which offer the same tax incentives as regular IRAs and 401(k)s. The company differentiates itself from other Bitcoin and Ethereum investment products in multiple ways. Unlike Bitcoin and Ethereum ETFs and investment funds, Bitcoin IRA offers an opportunity for individuals to invest in real Bitcoin or Ethereum at a much lower fee. Also, investors keep total control over their digital wallets, with no holding costs and the ability to withdraw once the term is over.

Learn more about Bitcoin IRA and Ethereum IRA at https://bitcoinira.com/

Media Contact

Contact Name: Amith Nirgunarthy
Contact Email: amith@bitcoinira.com
Location: Los Angeles, USA
Phone: +1.877.936.7175

Bitcoin IRA is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This press release is for informational purposes only.

Source: Bitcoin IRA

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May 31, 2017
Bitcoin Up 300% as Bitcoin IRA Celebrates 1-Year Milestone

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Bitcoin IRA superior fund returns along with 100% customer satisfaction in their self-directed cryptocurrency-based retirement accounts

Press Release
–

updated: May 9, 2017

Los Angeles, Calif., May 9, 2017 (Newswire.com)
–
BitcoinIRA.com, the only company offering cryptocurrency-based retirement investment portfolios, has announced its one-year anniversary today. In the first year since launch, the company’s innovative retirement platform has been featured in the Wall Street Journal, Barron’s and Investopedia for making Bitcoin an easy option for retirement investing. It has also expanded its cryptocurrency offering by adding a secure way to invest in Ethereum as well as Bitcoin.

Bitcoin IRA is the first and only company to offer cryptocurrency-based IRAs for investors, allowing them to hold actual cryptocurrencies in a retirement account. Unlike traditional ETFs and investment plans, investors in Bitcoin IRA and Ethereum IRA continue to own their cryptocurrency even after the end of the IRA tenure, allowing them to freely distribute it.

Combining its innovative product with a strong bitcoin price trend and excellent customer support, Bitcoin IRA has achieved an extremely high client satisfaction rating, receiving an average of 5 out of 5 stars on review platform Birdeye.

“We’re extremely proud of what we’ve accomplished with Bitcoin IRA,” says Chris Kline, COO. “Our commitment to listening to our clients has helped us grow month after month, and continually offer new, innovative ways for investors to save for retirement.”

Recently, the team behind Bitcoin IRA also launched Ethereum IRA, a similar investment product for Ethereum, the second-largest cryptocurrency. The company has been evaluating releasing new cryptocurrencies on its proprietary SDIRA platform, along with new features being driven by demand from existing stakeholders and clients.

Chris Kline continues:

“We’ve only scratched the surface of cryptocurrency and blockchain technology in the retirement space. Projects currently under development are driven by our clients and designed to drive mainstream crypto adoption ahead.”

About Bitcoin IRA

Bitcoin IRA is the only Bitcoin-based retirement investment portfolio that allows people to invest with actual bitcoins for their IRA or 401(k). The platform works with leading fintech professionals to provide secure, high-quality Bitcoin investments.

Bitcoin IRA offers both traditional and Roth IRA options, which offer the same tax incentives as regular IRAs and 401(k)s. The company differentiates itself from other bitcoin investment products in multiple ways. Unlike bitcoin ETFs and investment funds, Bitcoin IRA offers an opportunity for individuals to invest in real bitcoin at a much lower fee. In addition, investors keep total control over their Bitcoin deposits, with no holding fees and the ability to withdraw once the term is over.

Learn more about Bitcoin IRA and Ethereum IRA at https://bitcoinira.com/

Media Contact

Contact Name: Amith Nirgunarthy
Contact Email: amith@bitcoinira.com
Location: Los Angeles, USA
Phone: +1.877.936.7175

Bitcoin IRA is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This press release is for informational purposes only.

Source: Bitcoin IRA

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May 9, 2017
Groundbreaking Crypto Start-Up, Internet of Coins, Launches Fundraiser on OpenLedger DC

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Press Release
–

updated: Mar 17, 2017

Pandrup, Denmark, March 17, 2017 (Newswire.com)
–
Internet of Coins (www.coinstorm.net) will launch their fundraiser on the OpenLedger Decentralized Conglomerate (DC) on March 21st 2017, in celebration of the first day of spring. Until the launch, investors can join the early bird offer and receive a 5% discount.

Essentially a wallet, Internet of Coins is a secure way to store cryptocurrencies and smart contracts, and trade them without centralized exchanges. With an easy-to-use interface to manage multiple coins and assets, users of Internet of Coins need no advanced technological knowledge to work with cryptocurrencies. Furthermore, the platform acts as an interface to smart contract systems, decentralized communications, and distributed notary functions.

Existing wallets will need no changes or adaptations to have their blockchains and value systems connected to this decentralized network.

Internet of Coins gives users the option to exchange currencies with anyone in the world, without dependency on a centralized third party. Compatible with every currency available, users can receive, send and swap, making fluid trades of value from and to any blockchain available.

The official token of the Internet of Coins platform, termed HYBRID, serves two main purposes. First, it provides a coherent store of value across multiple blockchains, diversifying risk. Second, it serves as the vehicle to swap value between the different chains they are registered on. This will allow users to exchange value without the need for a centralized external third party.

HYBRID tokens will be freely tradable after July 1st, 2017.

Joachim de Koning, Founder of Internet of Coins, explained, ‘From July 1st 2017, we will release the tokens to fundraiser participants. Tokens will be released on the user’s blockchain of choice. Due to the hybrid nature of the token, it can be used on multiple blockchains.’

‘We are inviting people to join us for our Livestream event, http://bit.ly/2mLX9eX, on March 20 at 6pm GMT where we will be presenting our platform and answering questions.’

The idea of Internet of Coins was conceived during the summer of 2014. It aims to create a decentralized, self-sustaining economy by implementing inter-blockchain connectivity.

De Koning continued, ‘Our goal is to make every cryptocurrency autonomously part of a large swarm of decentralized economic activity. We want to do this by enabling every cryptocurrency user to create hybrid assets that interconnect value systems and blockchains. The source code to make this possible will be open source, non-commercial and freely available, to enable the impartial establishment of the Internet of Coins.’

Ronny Boesing, CEO of OpenLedger, says, ‘The Internet of Coins is a great way for interlinking all digital forms of value in one place. Because you can swap digital assets and currencies, peer to peer, you also have the incredible opportunity to earn fees by participating. What we also love about Internet of Coins is the ‘easy to use’ interface which allows users existing wallets to be adapted with no changes or adaptations. In my opinion, this innovation is a need-to-have tool for crypto traders.’

Media Contact

Siim Õunap/Aviva Pearson
siim@openledger.info/aviva@openledger.info
Phone: +372 556 07 289

EDITOR’S NOTES:

The OpenLedger Decentralized Conglomerate (DC) is the world’s first blockchain powered conglomerate, allowing multiple organizations to join forces and directly invest in each other’s successes, reaping the benefits of cross-promotion throughout the entire network.

LINKS:

Website: www.internetofcoins.org
Early Bird registration: https://coinstorm.net/en/terms
Twitter: @internetofcoins
Learn more about OpenLedger: www.openledger.info

OpenLedger is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

Source: OpenLedger

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March 17, 2017