Since there is so much going on in the crypto space I thought it would be a good idea to post a news roundup post. Depending on how this one goes, it might become a regular thing. After all, why spend hours reading when you can get a summary of news in a few minutes. Here are some topics about initial coin offerings that stood out for me during the month of April.
Vietnamese Authorities Probe $660 Million ICO Fraud
Over $660 million is allegedly lost in a recent ICO fraud in Vietnam. Angry investors who took part in an ICO are asking the government to act swiftly in unearthing what they call the greatest ICO fraud in the modern history of Vietnam.
Local newspapers report that more than $660 million was channeled to suspicious accounts belonging to dubious ICO schemes.
This latest development has sparked tension in the capital city. Many people, mostly digital currency investors have moved to the city in protest of the fraud.
Each day in the past few days, many people throng to the streets of Ho Chi Minh.
According to one local media, Tuoi Tre News, at least 32, 000 cryptocurrency investors are affected.
Following the alleged fraud, Vietnamese PM issued a directive. The order to properly oversee the activities related to the Bitcoin and other digital currencies was sent to the country’s central bank and major exchanges.
“Don’t Try ICO”, Renowned Cryptocurrency Investors Warn Entrepreneurs
A section of well-known digital currency investors is now speaking against initial coin offerings. While many entrepreneurs are working their way out to invest in cryptos, those who have made a mark are against the idea.
In a recent statement to the press, Scalar Capital, cofounder Linda Xie said it is a waste of time to think about it. Linda said, “The majority of current projects that many people run after, do not really require an ICO.”
The cofounder however, agreed that there are many other projects, which she termed legitimate that conduct token sales. Many of these projects however, can be found in the category of small minority.
Although the San Franciscan Scalar Capital cofounder is mild on the ICO, she says that some of the existing projects can be funded through equity finances.
Among her major worries is that the ICO has been greatly abused by those that are already in the market. According to Linda, young entrepreneurs seeking to invest in cryptocurrencies need to take note of the available red flags.
Telegram Chap App Hits A Hard Rock As Moscow Court Blocks $1.7 Billion Worth Of ICO
Telegram chat app will not be on your gadgets any time soon. This is after a court in Moscow, Russia blocked its operations.
According to court documents released early this week, the blocking of the chat app follows a violation of a court order.
Moscow intelligence authorities said that Telegram denied its agents the right to access the platform’s encrypted messages.
According to the authorities, it is essential to access the messages because this is part of the routine to ensure nobody uses the chat app to course national insecurity.
The closure comes at a time Telegram has raised a whopping $1.7 billion on the chat app from the ICO alone.
This is a blow to Telegram, with only a few days to the 2018 Fifa World Cup.
Pavel Durov currently heads telegram. The Russian millionaire failed to comply with intelligence authorities who say that unless Telegram meets, the court order to block the app will not be lifted.
When delivering the verdict, Judge Yuliya Smolina of Tagansky Court insisted that by granting intelligence authorities access, they are not invading the privacy of their clients. Instead, the judge said, it is to ensure there is sanity in the use of social media.
Following the decision, Telegram has 30 days to appeal.
Macau Monetary Authority Warns Cryptocurrency Investors Following Increased Criminal Involvement
The Macau Monetary Authority has warned digital currency investors of possible criminal activities. In a statement issued by the financial agency, recent reports indicate that there is increased involvement of criminal and fraud activities during cryptocurrency transactions.
This latest warming by the agency comes at a time a lot is going on in the news about Macau Dragon Group.
Preliminary reports indicate that the digital currency group has close ties with Wan Kuokoi a notorious Chinese gangster.
According to confirmed sources, the gangster is using the Dragon Group to bring the Dragon Coin into Macau market. In the end, he wants to siphon money from casinos in Macau.
Luis Figo Joins Other Famous Celebrities In Promoting ICO
Portuguese legendary footballer Luis Figo is the latest celebrity to support an ICO.
The 2001 Footballer of the Year has gone into a record to be the latest to sign a deal with Stryking Entertainment. The company seeks to use Football-Stars, a platform within its larger entertainment category to ensure there is a tokenizing of fantasy sports.
During the signing of the deal that saw Luis become the prime ambassador, he said that there is nothing that would stop him from promoting talent.
“When I read about Football-Stars, I was touched. From then on I wanted to be part of the team. Football has made many young people become stars. I’m happy to be associated with something that positively changes the lives of other people especially the young,” Figo said.
Other celebrities who are currently associated with various ICOs include Floyd Mayweather, Michael Owen, Manny Pacquiao, Luis Suarez, and Evander Hollyfield among others.