Davorcoin Created Another Bitconnect Situation
Everything seems great at the start because no one can cash out The soonest you can get your capital back is after 89 days, and that’s on an investment of $25,001 or more The smallest investors, depositing between $100 and $1,000, will need to wait 299 days to have their investment returned. Until then, you can only watch your interest accumulate at the daily variation rate — plus a little extra if you invest $1,001 or more. Bitconnect investors jumped in when Bitcoin prices were much lower than they are today. The price of Bitconnect went up 100’s of times in value within just a years time As the value kept going up, the freeze period came to an end for the early investors. They were rewarded the most, and as they withdrew the liquidity decreased and the value of their coin crashed in a downward spiral. It created a race to the front door, with everyone trying to get out — and those that kept re-investing found themselves extremely burnt. The same thing essentially played out with Davorcoin. Shazzy reported on steemit. read more here
Texas Hits Another Crypto Lending Platform with Cease-and-Desist
Texas’ securities agency has issued another cryptocurrency-focused emergency cease-and-desist order, this time against a lending scheme called DavorCoin.
The TSSB also alleged that the project is an investment fraud, because DavorCoin had intentionally hidden material information of its business – including its principles and business location, as well as how it plans to realize investment promises for investors.
The DavorCoin order yet again indicates the increasing level of focus Texas’ securities agency is giving to cryptocurrency-related investment.
The agency said that while its mandate is not seeking to regulate cryptocurrencies, it will continue monitoring cryptocurrency projects that aim to bring returns to investors.
“As cryptocurrencies continue to generate considerable attention in the media and interest from the public, these illegal and fraudulent securitized cryptocurrency offerings pose a grave threat to traditional investors. Absent a fair description of the terms of a product, the identity and qualifications of principals and the material risks associated with an offering, traditional investors may well be exposed to irreparable harm.” said the TSSB’s director of enforcement, Joseph Rotunda, in a statement sent to coindesk.