What are airdrops and why should I care?

What are airdrops and why should I care?

When a new cryptocurrency is launched the developers need to decide  what to do with the coins.                                               

How to Claim Cryptocurrency Airdrops

Some have them locked up until they’re mined, some put up all the coins for sale in an ICO (initial coin offering) and some give away some or most of the coins in a free airdrop. Why would they just give away the coins? It’s all about marketing and getting the word out that your cryptocurrency project exists. And if people like your project and currency, they’re likely to hold the coin, perhaps even buy more and drive up the price.

So what are these airdrops actually worth? It really depends. Most are in the $1 to $3 range. But some will be worth hundreds or thousands of dollars. You could sign up for a ton hoping to catch some good ones or you can just sign up for airdrops from projects that look promising (fyi most of my biggest payouts were not coins that I thought had any potential).

Steps to claim crypto airdrops.

Have necessary social media accounts.
The requirements for airdrops vary but many require social media accounts including Bitcointalk (a cryptocurrency forum), Facebook, Telegram and Twitter (sometimes Instagram, Steemit and Reddit). I use a dedicated Facebook, Twitter and email just for signing up for airdrops (some require you to post about them or subscribe to emails so I don’t want to clutter my other accounts).

Get an ERC20 Ethereum wallet.
Some airdrops will be held right on the platform’s website, but many tokens will go to an Ethereum wallet. An ETH wallet on an exchange will not work. You’ll need need an ERC20 (can hold ETH and ETH tokens) wallet such as one from My Ether Wallet. You can read how to set up a MEW account here. Besides MEW you may try Parity or MetaMask. Another platform that is starting to see token airdrops is Waves. You can get a Waves wallet here. Make sure you store your private key in a safe place (or places) where you won’t lose it or else you’ll lose you’re funds.

Have a list of your info for easy access.
 
It’s good to have a list links to the social media accounts you use and your wallet address so you can quickly copy and paste the into form fields. I use “text expansion” or autocomplete tools to help fill out forms. (Breevy and PhraseExpress are a couple popular ones.) So if I type “eA”, my Ethereum address will automatically be filled into the form field.

Find airdrops and follow the claiming instructions.
There are airdrop links scattered all over the internet, but I’m partial to our huge airdrop spreadsheet that is updated daily. We also run the largest airdrop claiming group on Facebook where you can sign up for and share your airdrop links. To claim, some airdrops ask you to fill in a Google form, some ask you to share on social media, some have you create an account on their site and some want you to talk to a Telegram bot. Whatever they ask you to do, follow the instructions very carefully and don’t try claim airdrops more than once or else you may end up with nothing.

Save your passwords.
Make sure you have a good password manager that is secure. Create strong passwords that have capitals, numbers and special characters. Save your passwords right away or else you’ll have to keep requesting password resets.

Avoid scams.
Unfortunately some airdrops are outright scams and some are fake forms impersonating popular currencies. A rule of thumb is to never give out info that is too personal and never give out your private key. And be wary if a form asks for a “donation” to get more coins… if it’s a fake form you just gave money to a scammer. I’ve only donated to a project once; I just like free stuff.

Check your airdrop balances.
Go to DeltaBalances and paste in your ETH address to see all the tokens you have in your Ethereum wallet and how much they’d trade for on the exchange Ether Delta. (I wouldn’t recommend trading on Ether Delta. It can be a good way to cash in your junk tokens but the interface is very frustrating and I’ve made a mistake worth 100’s of dollars due to that.) I like to wait until a token hits it big and then transfer it to a regular exchange to sell it. But sometimes as soon as an airdrop is released there will be an initial pump where you can sell the token at a high price. Some of these airdrop cryptos should be dumped but some will be successful and may be good to hold long term.

Have fun!
Maybe you’ll strike it rich and maybe not. But when I see my wallet that’s full of tons of up and coming coins, I get a similar feeling to when I was a kid collecting baseball cards and Pokemon. You don’t have to catch them all, but try to catch a few good ones, it’ll be fun.

Article Produced By

https://yourfreecrypto.com/how-to-claim-cryptocurrency-airdrops/

Blockchain files a complaint against a cryptocurrency exchange, launching ICO next week

Blockchain files a complaint against a cryptocurrency exchange, launching ICO next week

Blockchain, a cryptocurrency company,

announced on their official Twitter that they have filed a complaint against Blockchaindotio, a cryptocurrency exchange, for using their name and promoting false information to users. According to the blog report, Blockchaindotio is a cryptocurrency launched by Paymuim, a company which focuses on providing services for Bitcoin. However, it is stated that the company which was popular for running Instawallet is rebranding itself since they lost their customers funds to a hack.

In the year of 2013, Paymuim claimed that Instawallet was compromised due to a hack and that the customers’ coins were stolen from the platform. The platform also stated that they have filed a complaint with the police. This falls in the same timeframe as that of Mt. Gox hack, the biggest cryptocurrency hack in the space.

However, the announcement of the hack eventually resulted in many stating that the platform was running a scam and are falsely claiming that they were hacked. This is because the platform failed to show any evidence related to the police report despite the community asking for it several times. Reportedly, the company has not completely paid off the claims made by their customers.

Blockchain claims that the platform is rebranding itself in order to conceal the allegations of scam. The blog further stated the company is falsely claiming that they have registered with the Securities and Exchange Commission [SEC] for their Initial Coin Offering [ICO]. The ICO is going to be launched in next week on 27th September 2018. This would result in the investors being unable to trade the token publicly. Moreover, the report also stated that there is no evidence regarding the ICO being regulated by the French ACPR.

Blockchain stated that they are particularly concerned about the company has rebranded to a name which is similar to theirs and that it has already led to a lot of confusion in the market. They stated that the similarities which both the companies share include the domain name, the color of the portal, logo, and the tagline. Blockchain further stated that there have been several people questing them about the ICO.

Blockchain said:

“Blockchain is not doing an ICO. When we inspected blockchain.io’s social media and Telegram channels, we discovered that many more people had assumed that blockchain.io was Blockchain.”

They further added:

“To protect our users and maintain the trust we’ve worked so hard to build, we’ve had to take action. Today we filed a complaint in US federal court. We’ll file more complaints in other courts if we need to and we will continue to fight false and misleading statements that endanger the crypto community.”

Article Produced By
Priya

Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

https://ambcrypto.com/blockchain-files-a-complaint-against-a-cryptocurrency-exchange-launching-ico-next-week/

How to use AirDrop

How to use AirDrop

AirDrop makes sending files to Apple devices easy — here's how

Like many features native to iOS and MacOS,

AirDrop is both quick and easy. Similar to sending files via text and email, you can use the cross-platform utility to send photos, videos, songs, and even robust PDF files. This is particularly handy when you are in close proximity to the person you’d like to send your file to, as AirDrop only works when users are near one another.

The feature uses a Bluetooth connection to create a peer-to-peer Wi-Fi network between your iOS and MacOS devices and uses encryption to obfuscate your files. You can access it from directly within Photos, Notes, Safari, Contacts, and Maps too, without having to navigate to a different screen or copy and paste the information. Learn how to use AirDrop and it could become your best friend for file transfers.

Accessing AirDrop on iOS

Apple reconfigured the Control Center in iOS 11, making AirDrop less accessible than it once was. Thankfully, the feature is still easy to access.

Step 1: Swipe up from the bottom of your iPhone, iPad, or iPod Touch to reveal the Control Center. If using an iPhone X, swipe down from the upper-right corner of the display.

Step 2: Locate the upper-left box, which contains Airplane Mode, Bluetooth, and other connectivity controls. Make sure both Wi-Fi and Bluetooth are turned on.

Step 3: Perform a 3D Touch or hold down on any of the aforementioned icons. This will expand the box, and reveal additional controls like AirDrop.

Step 4: Tap the AirDrop button to open the quick settings menu. Here, you will be able to set your ability to send and receive files via AirDrop.

Note: If you see “Receiving Off” and can’t seem to change it, go to “Settings,” then “General,” and finally “Restrictions,” and ensure the AirDrop feature is toggled on

Using AirDrop on iOS

Using AirDrop on iOS is easy. Just follow these steps:

Step 1: Go to the file, photo, or other piece of content you’d like to share.

Step 2: Tap the Share button in the bottom-left corner of your device’s display. The feature’s icon will depict a box with an arrow pointing upward.

Step 3: Directly below the image or piece of content, you should see a list of available devices. Tap the name of the device with which you wish to share.

Step 4: Once accepted, “sent” will appear under the device name.

AirDrop on MacOS

AirDrop works just as well on MacOS as it does on iOS. Here’s how to take full advantage of it.

Step 1: Open “Finder” from the Dock.

Step 2: If you don’t see it in the lefthand sidebar, you can find it from the menu bar. Just select “Go” and then “AirDrop.”

Step 3: The AirDrop window will show you all nearby devices that can accept your files and documents. Drag what you want to send on to the intended recipient, and drop it to begin the transfer.

Alternatively, you can open the file you want to send and click the share button — it looks like a rectangle with an up arrow pointing out of it. Choose “AirDrop” from the sharing options and then choose a recipient to send the file to them.

Accepting or declining an AirDrop transfer

Sending a piece of content via AirDrop is easy, as is accepting or declining an AirDrop transfer. But it is a little different depending on which platform you’re using. If someone sends a file or photo to you using AirDrop, an alert will appear on your screen with a preview of said content. You’ll need to accept it to complete the transfer. On iOS, you can tap the “Accept” button that pops up in the center of your screen. On MacOS, you’ll need to look to the AirDrop window, or at the notification in the top corner.

Selecting “Accept” will open the app that corresponds with the file (Photos, for instance), whereas tapping “Decline” will cancel the transfer. Keep in mind that if you’re sharing content with yourself via AirDrop, you won’t see an option to accept or decline an AirDrop transfer; the content will automatically transfer between your devices, assuming both are signed in using the same Apple ID.

Making sense of AirDrop’s quick settings

Once you have access the quick settings menu, you’ll be presented with three options:

  • Receiving Off: This blocks your device from receiving any and all AirDrop requests.
  • Contacts Only: This makes it so only your contacts can see your device.
  • Everyone: This allows all nearby iOS users who are using AirDrop to share files with you.

Troubleshooting

If you’re having trouble transferring content between devices, double check that both Bluetooth and Wi-Fi are turned on. This applies to each device, as AirDrop only works when both Wi-Fi and Bluetooth are enabled. If that doesn’t solve the issue, ensure you’re not using your iPhone or iPad as a personal hot spot. To do so, go to “Settings,” then “Cellular,” followed by “Personal Hotspot,” and ensure the slider beside the feature is toggled off.

If none of the above solve the issue, make sure the two devices are within range of one another. AirDrop will not work if either user is out of Bluetooth and Wi-Fi range. Also, if the person you’re attempting to share your content with has AirDrop set to Contacts Only, and your information is not saved in their contacts, make sure they toggle their AirDrop configuration to receive AirDrop content from “Everyone.”

Article Produced By
Jon Martindale

https://www.digitaltrends.com/mobile/how-to-use-airdrop/

SEC Director Vows ‘More Substantial’ Enforcement Against Illegal ICOs

SEC Director Vows ‘More Substantial’ Enforcement Against Illegal ICOs


U.S. Securities and Exchange Commission (SEC)
 
co-director of enforcement Stephanie Avakian mentioned in a Sept. 20 speech that the regulatory agency is most likely going to recommend “more substantial remedies” against those who fail to follow proper initial coin offering (ICO) registration requirements in the future

According to a transcript of the speech posted on the SEC’s website, Avakian articulated the specific set of principals that guide the agency’s decision-making when it comes to regulation, and then delved into how the SEC was tackling in “misconduct” in the ICO and virtual asset space.

Balancing The Risks and Rewards of ICOs

In the speech, Avarkian mentioned that the “novelty of ICOs” and the possible “utility of the underlying blockchain” makes these types of offerings exciting for certain investors. However, she noted  the market “exuberance” for ICOs can mask the reality that they are “often high-risk investments,” since they could lack viable products, have flawed business models, or just simply be “outright frauds.” According to Avarkian, the SEC has tried to be cognizant about how to deal with ICOs registration cases that are not fraudulent. The agency wants to affirm valid ways to raise money while still making sure investors can enjoy the legal protections already in place.

She noted that the agency has issued a number of public statements to inform investors about concerning activity in the ICO space, particularity highlighting one last November that discussed the rise in ICO promotion by celebrities and other public figures. Avarkian said the “anecdotal evidence” in the wake of the announcement pointed to a “dramatic decline” in the amount of celebrity-endorsed ICOs. Overall, Avarkian said any issues related to ICOs and cryptoassets must be in the crosshairs of the Division of Enforcement, and pointed out that current work related to the space and other cyber-related issues was already “paying dividends.”

Staying Active On The Cryptocurrency Front

The recent speech by Stephanie Avakian seemingly caps off what has been a busy week for the SEC when it comes to virtual currency. The regulatory agency also said on Thursday that they are starting a formal review process for the bitcoin ETF proposed by VanEck and SolidX. The proposed ETF has made headlines since it would hold actual vitcoin in lieu of virtual currency futures contracts, and would maintain “comprehensive insurance” to safeguard investors against loss or theft of the bitcoin.

Just a couple of days before, SEC Commissioner Hester Peirce, often referred to as “CryptoMom,” asserted that the government should not hold back new products from coming out in the cryptocurrency market due to the perceived weaknesses associated with bitcoin.

Article Produced By
ICO News

https://www.ccn.com/sec-director-vows-more-substantial-enforcement-against-illegal-icos/

How to Use AirDrop on Your iPhone

How to Use AirDrop on Your iPhone

Learn how to AirDrop from your iPhone to your Mac or other devices

AirDrop lets you share photos, documents, and other files wirelessly

with other nearby AirDrop users. It's the easiest way to share files with other iPhones, iPads, and Mac computers without having to rely on file transfer methods like email or cloud storage services. Once you enable AirDrop on your iPhone, you can accept files from other AirDrop-enabled devices around you. There are multiple ways to enable AirDrop on your phone depending on who you want to be able to see your phone when they try to AirDrop files.

Which Apps Support AirDrop?

Many of the pre-installed apps that come with the iOS can be used with AirDrop. This includes Photos, Notes, Safari, Contacts, and Maps. This means you can share things like photos and videos, websites, address book entries, text files, and much more. Some third-party apps support AirDrop, too, to let you share their content. However, it's up to each developer to include AirDrop support in their apps, so not everything you download from the App Store will work with AirDrop.

AirDrop Requirements

  • An iPhone 5 or newer, a 5th generation iPod touch or newer, an iPad mini, or 4th generation iPad or newer
  • iOS 7 or higher
  • A Mac from 2012 or later
  • A Mac running OS X Yosemite (10.10) or higher
  • Another iOS or Mac user with an AirDrop-compatible device
  • Bluetooth turned on
  • Connection to a ??Wi-Fi network
  • The person you want to share content with must be nearby (AirDrop doesn't work over the internet)

 

How to Enable AirDrop on Your iPhone

To use AirDrop, you have to make sure the settings are set up correctly, which you can do in the Settings app. Some versions of iOS work a little differently, though, so you might need to follow the second set of steps below.

  1. Open the Settings app.
  2. Tap General.
  3. Tap AirDrop.
  4. Choose an appropriate setting:
    1. Receiving Off disables your phone from receiving AirDrop requests, so nearby devices will not see your phone when they attempt to share files. However, you can still send files to others.
    2. Contacts Only lets you use AirDrop only with people in your address book. This gives you the most privacy but also limits the number of people who can share files with you.
    3. Everyone does just what it says: lets everyone around you attempt to share files with you over AirDrop. 

If you don't have these settings on your phone, then you have an older iOS version, but you can still turn on AirDrop. 

  1. Swipe up from the bottom of the screen to open Control Center.
  2. Tap the AirDrop button.
    1. This button should be in the middle, next to the AirPlay Mirroring button.
  3. Choose who you want to be able to see your phone.

How to Share Over AirDrop

With AirDrop turned on, you can use it to share content from any app that supports it. 

  1. Open the app that has the content you want to share.
    1. For example, open the built-in Photos app to share pictures or videos you've saved to your phone.
  2. Select the file you want to share over AirDrop.
    1. If the app supports it, AirDrop lets you share multiple files at once. In the Photos app, for example, select multiple images or videos.
  3. Tap the action box, identified by a rectangle with an arrow coming out of it.
  4. Tap the device you want to share the content with.
    1. Icons of all the nearby AirDrop-enabled devices are shown in the Tap to share with AirDrop section.

After you send the content over AirDrop, there's nothing left for you to do but wait for the other user to accept the transfer. You'll see a "Waiting…" message in the meantime, and then "Sending" during the transfer, followed by "Sent" once they receive your file(s). If the other user declines your AirDrop request, you'll see a red "Declined" message instead.

How to Accept or Decline an AirDrop Transfer

When someone else sends you data over AirDrop, a window pops up with a small preview of the content. You have two options: Accept or Decline. If you tap Accept, the file(s) will be saved to your device and/or opened in the appropriate app. For example, accepting a transfer of images over AirDrop will save the photos to your phone and then open them in the Photos app, URLs will launch in the Safari browser, etc. If you tap Decline, the transfer is canceled and the other user will be told that you declined the request.

Note: If you're sharing a file with a device that's logged in with the same Apple ID you're logged in with, that device will not be shown the Accept or Decline pop-up message. Since both devices are assumed to be your own, the transfer is accepted automatically.

AirDrop Troubleshooting

If AirDrop doesn't work, there's a good chance that you've not enabled it from the settings (see item No. 1 above), or that you have but you've only set sharing to contacts, and the person who's trying to send you something is not in your address book.However, if you've already checked those settings, and so has the other user, but AirDrop still doesn't work, there are a few troubleshooting tips you can try.

  • Enable Wi-Fi and Bluetooth: AirDrop requires that both you and the other person have Wi-Fi and Bluetooth enabled.
  • Disable Your Personal Hotspot: If you're using a Personal Hotspot while trying to also use AirDrop, disable it. AirDrop doesn't work simultaneously with hotspots.
  • Move Closer: AirDrop is based on Bluetooth, so it has Bluetooth's range limitations. Move within about two dozen feet (preferably closer) of the person you're sharing files with.

Article Produced By
Sam Costello

"I'm fascinated by and enthusiastic about technology. I value technology that helps people and makes our lives better, that improves our time and our relationships. When assessing a new technology or writing about how to perform a task, I take a human-centered approach that focuses on helping people do things better."

https://www.lifewire.com/use-airdrop-on-iphone-1999205

China’s Central Bank Warns Investors of ICO, Crypto Risks

China's Central Bank Warns Investors of ICO, Crypto Risks

China’s central bank, the People’s Bank of China (PBoC),

has today, September 18, issued a new public notice “reminding” investors of the risks associated with Initial Coin Offerings (ICOs) and crypto trading. The notice, released from the bank’s headquarters in Shanghai, reiterates the severe line that has been adopted by the country’s Office for Special Remediation of Internet Financial Risks, which first introduced a blanket ban on ICOs in September 2017. Today’s notice censures the “unauthorized” and “illegal” ICO financing model for posing a “serious disruption” to the “economic, financial and

social order”:

“[ICOs are] suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”

The PBoC has today hailed the successes of the country’s stringent restrictions that have targeted ICOs and a broad spectrum of crypto-related activities to date,

claiming that:

“[T]he global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”

Nonetheless, the bank recognizes that several challenges remain, notably the prevalence of offshore exchanges that are used by investors to circumvent the mainland ban. The PBoC notes that the Office for Special Remediation of Internet Financial Risks has now adopted a series of targeted measures, including blocking up to 124 IP address suspected of providing a gateway to domestic crypto traders.  

It further points to redoubled efforts to “clean-up” payment channels and strengthen monitoring and inspection mechanisms, noting that around 3,000 accounts have already been closed as a result of increased oversight. Lastly the notice outlines recent measures undertaken to counter the circulation of crypto “hype” materials. As previously reported, on August 25 the PBoC had already issued a fresh risk alert against “illegal” ICOs, warning that blockchain and the idea of “financial innovation” are being used to lure investors as a “gimmick” that conceals essentially fraudulent Ponzi schemes.

This summer has seen an onslaught of toughened anti-crypto measures from Beijing, which have included a ban on commercial venues from hosting crypto-related events in certain districts. Alongside ‘offline’ measures, China’s tech titans – Chinese ‘Google’ Baidu, Alipay’s Alibaba and WeChat-developer Tencent – have all tightened their monitoring and acted to ban accounts suspected of engaging in or propagating crypto and even blockchain related activities.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/not-high-performance-tradeshift-ceo-prudent-on-blockchain-supply-chain-potential

The best Airdrop-friendly Cryptocurrency Exchanges

The best Airdrop-friendly Cryptocurrency Exchanges

Cryptocurrency Airdrop is a great way to get acquainted

with the Project and get some free Tokens. For over a year now Cryptocurrency Airdrops have been quite popular, many people have gained diverse Airdrop Tokens, this blog is about the best exchanges to trade your Tokens. ICO’s often illustrate their roadmap in a creative way, but is very useful to use as a reference point in selling the tokens from their Airdrop, essentially allowing the ICO to show their true worth. Once you have decided to sell your Airdrop tokens, it is time to select an Exchange. To find where the tokens are traded, you can use coinmarketcap.com.

As of June 20th according to coinmarketcap, Binance offers their customers to trade over 357 different crypto markets. Not is Binance only a large Exchange, it is also user-friendly in managing your assets and performing the trades. There is a limit in daily trading volume as usual, which can be increased by performing a KYC. A few examples of Airdrop tokens that are currently traded on Binance: BRD Token, Waves & Aelf. Another advantage of using Binance is that some Airdrops are automatically supported. For example, holders of EOS who keep their EOS on their Binance account will automatically be eligible for IQ, DAC & EON Airdrops!

Another user-friendly cryptocurrency exchange, KuCoin, is known to list trading pairs of tokens manufactured by quality ICO’s. If one of your Airdrop Token is listed on KuCoin, it is a good idea to hold them. Oyster did an Airdrop some time ago with AirdropAlert where PRL tokens were distributed. PRL tokens are traded on KuCoin and holders of PRL tokens were given SHL tokens (another Airdrop by Oyster, but new application). If you held PRL tokens on KuCoin, you’ve gotten SHL tokens automatically! Including other reasons, this explains why KuCoin is popular among Airdrop Hunters.

Supporting over 240 cryptocurrency trading pairs, Huobi is definitely one of the exchanges where you will be able to trade your Airdrop tokens first. Huobi is a Chinese cryptocurrency, tokens based on the Neo blockchain (Nep-5 Tokens) are therefore more likely to be listed on Huobi first. Huobi is based in Beijing, China and is founded in 2013, Huobi targets their audience whom are based in China. Most locals in China know what a Bitcoin is and have heard of the blockchain technology. Airdrops are referred to as ”candies”, it is very probable that tokens from Chinese/Asian ICO’s are listed on Huobi, which is why Huobi is selected as one of the feasible Cryptocurrency Exchanges to trade your Airdrop Tokens.

Compared to the previously mentioned cryptocurrency exchanges, EtherDelta distinguishes itself by representing a decentralized trading platform for Ether and tokens based on the Ethereum blockchain (ERC-20). This means that no single server or person owns the exchange or its service. Using EtherDelta is done by submiting your private key and allowing you to place orders directly from your wallet. Downside of this is that there are phishing websites imitating EtherDelta, you don’t want to give them your private key! Since most Airdrops are essentially Tokens based on the Ethereum blockchain, EtherDelta is an excellent choice to sell your tokens.

Article Produced By
Airdrop Alert

https://www.airdropalert.com/icoreview/best-exchanges-for-airdrops/

Federal Judge Applies Long-Established Securities Law to ICOs

Federal Judge Applies Long-Established Securities Law to ICOs

Federal Judge Applies Long-Established Securities Law to ICOs

Does a decades-old securities law apply to an initial coin offering (ICO)? In a case that represents the first time securities laws have been applied to cryptocurrencies, a district judge says it may. On September 11, 2018, in a district courthouse in Brooklyn, New York, Judge Raymond Dearie ruled that two ICOs were securities, based on established laws that govern the financial instruments. His decision does not imply that all ICOs are securities, but that simply calling a token a “currency” does not preclude it from being classified as a security.  

Turning back a few pages, in October 2017, businessman Maksim Zaslavskiy was accused of misleading investors in two separate ICOs. He raised about $300,000 in a cryptocurrency called REcoin, which he claimed was backed by real estate, and a cryptocurrency called Diamond, which he claimed was backed by diamonds. In truth, no real estate nor diamonds backed either of the coins, and Zaslavskiy was charged in a criminal complaint with conspiracy and two counts of securities fraud — charges that carry up to five years in jail and a fine. Zaslavskiy moved to have the charges dismissed. He argued that his ICOs were not securities, but “the exchange of one currency for another,” and that securities laws are too “unconstitutionally vague” to be applied to his case. 

Cornell law professor Robert Hockett calls the insistence that the laws are vague a “Hail Mary.” “It is a fallback argument,” he told Bitcoin Magazine. “At first the defendant says the law is clear in that it clearly does not apply, but then he effectively says, ‘I have no way of knowing what I can do because the law is unclear.’” Judge Dearie found the laws clear enough. He pointed out that laws are meant to be interpreted flexibly. He then went on to determine that the two ICOs in question were “investment contracts” by applying the Securities Exchange Act of 1934, one of the most important pieces of legislation governing securities, and the Howey Test, a checklist regulators use to determine if an asset is a security.

Specifically, the Howey Test determines that a transaction represents an investment contract if "a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party." According to case documents, Judge Dearie found that REcoin and Diamond investors “undoubtedly expected to receive profits in their investments.” In his arguments, Judge Dearie also referenced the DAO Report, an investigative report issued by the U.S. Securities and Exchange Commission (SEC) in July 2017 claiming that tokens sold on an Ethereum-based investment fund were securities, and public statements made by SEC Chairman Jay Clayton on cryptocurrencies and ICOs in December 2017. At that time, Clayton noted that “simply calling something a ‘currency’ or a currency-based product does not mean that it is not a security.”

“Combined with statements the SEC chairman made previously, yesterday’s decision lends further credence to what many of us believe, which is that offered coins will count as investment contracts and hence securities,” said Hockett. “The SEC has made noises that ICOs were securities, but up until now, there has been no official legal ruling declaring they were.” The case still has to go to trial and, ultimately, it will be up to a jury to decide whether the ICO in question was a security. Still, Hockett said: “I really doubt an appellate court will overturn the district court’s ruling.”  

ICOs have been a major source of controversy in the crypto space. So far, about $20 billion has been raised in ICOs, most of that in the last two years. In a talk at MIT in April 2018, Gary Gensler, former chairman of the Commodity and Futures Trading Commission (CFTC), another regulatory body that has weighed in on ICOs, noted “significant noncompliance” with securities laws in the cryptocurrency space. “Many initial coin offerings, probably well over a thousand, many crypto exchanges, probably 100 to 200, are basically operating outside of U.S. law,” he said.

Article Produced By
Amy Castor

What’s a Cryptocurrency Airdrop? A Beginner’s Guide

What’s a Cryptocurrency Airdrop? A Beginner’s Guide

What’s an Airdrop?

Have you ever noticed an unexpected increase in your cryptocurrency wallet and didn’t know where the free coins came from? That, my friend, is most likely the result of an airdrop. Hoorah for free money! Airdrops can be delivered in a variety of ways, including forks (e.g. Bitcoin Cash, Bitcoin Diamond), ICO purchases (e.g.Raiden Network), and freebies (e.g. Binance gifting customers with 500 free TRX). Sometimes an airdrop will occur if a team behind the blockchain project decides to give away “free” tokens to the cryptocurrency community.

One of the most well-known examples of an airdrop is when a hard fork of Bitcoin, Bitcoin Cash, gave current Bitcoin holders an equivalent amount of Bitcoin Cash. At the time of the airdrop, if you were holding 0.4 Bitcoin, you were one of the many lucky receivers of 0.4 Bitcoin Cash. With Bitcoin Cash currently valued at $2,469.36 USD, that sounds like a pretty sweet deal!

Why do Airdrops Occur?

However, a big question still remains. Why does this happen, and why would a team decide to give away valuable tokens? Think about it this way. When you’re walking down the aisle of your favorite grocery store and employees are offering you samples of food to try, you may take a quick peek to analyze what the food is to decide if you want to try it. You take a bite, and it sure is delicious. The employee offering you the free sample then says “if you like it, you can find it in aisle 5 on the left-hand side”. From that single nibble, you may just go and buy the product.

In marketing, awareness is often one of the initial steps in a buyer’s journey. As with the grocery store example, psychology plays a crucial role in the aspects of an airdrop, as a buyer is much more likely to purchase a product they are familiar with than a product they know nothing about. Therefore, those in charge of distributing the tokens see an airdrop as a key opportunity to give you a taste of their tokens. Compared to alternate forms of costly advertising (such as Facebook Ads), airdrops are often a more effective approach to showcasing coins.

How Can I Inform Myself About an Upcoming Airdrop?

Many sites and online groups are dedicated to informing users of upcoming, past, and active airdrops. Icodrops and Airdropalert, for example, show a list of upcoming airdrops. They also advise you on how many days are left before they take place and what currency you need to hold at the time of each one to receive the coins. Another way to inform yourself of an airdrop is to simply keep up to date with the various social media accounts of each project.

That being said, often times, airdrops are surprises (unless you work with the project’s team). In other circumstances, an airdrop will be announced ahead of time and will have a different set of rules for receiving the tokens. The rules designated to an airdrop are decided on by the project’s team. This explains the differences in airdrop strategies. As of now, there are no standard implementation rules on how airdrops need to be designed. We may see official regulation on how they can occur if the government steps in.

A token airdrop currently underway is one from the ShipChain project. Their strategy is a bit more complicated than just holding a certain currency in your wallet and receiving free tokens. According to their website, “eligible” airdrop receivers will get the tokens in their respective wallets around March, as long as they follow these guidelines:

  1. Be an “active member of our Telegram group. An ‘active member’ means anyone that is a member of our Telegram community before the airdrop signup process is complete, which is two weeks from the Jan 15th start date.”
  2. “Pass KYC/AML (Know Your Customer/Anti-Money Laundering). This is a simple form we will have you fill out, it will be emailed to you within 1-3 weeks of completing this registration.”
  3. “Have a valid ERC20 non-exchange wallet.”

What Wallets Do I Need?

Usually, airdrops occur on the Ethereum or Bitcoin blockchain and all you need is an account on an exchange. However, those in charge of the airdrop will sometimes state a specific wallet that’s needed such as an “ERC20 non-exchange wallet”. If you’re new to cryptocurrency, you may not know what this exactly means and that’s ok, we’re here to help.

What ShipChain means by a non-exchange wallet is simply a wallet that isn’t located on exchange sites such Binance or Coinbase. Reputable non-exchange wallets include Exodus and Jaxx. For a detailed list of wallets, feel free to visit our Bitcoin Wallet guide. The article also includes ways to safely store your tokens and the advantages/disadvantages of using different types of wallets. An ERC-20 wallet simply means any wallet that supports the Ethereum blockchain system. Some tokens follow Bitcoin protocol, some follow Ethereum, etc. Therefore, it’s important to have a wallet that allows you to store ERC-20 tokens if that’s what the airdrop guidelines call for. MyEtherWallet (MEW) is a popular ERC-20 wallet.

 

Final Recommendations

Most importantly, make sure you are visiting the official site of the project when researching airdrops. A good way to filter out scam sites is to visit the official social media pages and find a post which links you back to their website.  As stated before, the cryptocurrency market is currently unregulated and the potential for fraud and coin theft is high. Reputable blockchain projects will not ask you for private wallet information beyond your wallet’s public address. Never give out your private keys to ICOs who claim to “need it” for your airdrop to be delivered. Identity theft and hacking attempts are prevalent in the cryptocurrency community, and you do not want to be a victim when proper measures can be taken.

Article Produced By
Erin Gorsline

https://coincentral.com/cryptocurrency-airdrop/

Final Draft of ICO Legislation Could Signify Next Step for Philippines Fintech Sector

Final Draft of ICO Legislation Could Signify Next Step for Philippines Fintech Sector

The Philippine Securities and Exchange Commission (SEC)

is due to unveil the hotly anticipated draft regulation for cryptocurrencies in the next few days, if the information provided by The Manilla Times is correct. If the regulation reflects the previous enthusiastic efforts to implement cryptocurrency in the Philippines, it stands to play a seminal role in defining the country’s status as a major player in the fintech sector. The SEC chairman, Ephyro Luis Amatong, has previously emphasised the need to regulate cryptocurrency exchanges as traditional trading platforms.

The draft comes in the wake of several Philippine lawmakers calling for the creation of a properly structured and above-board regulatory environment for Initial Coin Offerings (ICO) as the country opens up to the new technology. In spite of several successful DApps being developed in the country and the start of a promising upward trend for the Filipino fintech industry, officials are aware of the need to create a competent legislative framework to both protect their citizens from scams and for the sector to develop profitably.

In stark contrast to the majority of other central banks worldwide, the Philippines central bank — Bangko Sentral ng Pilipinas (BSP) — has been extremely proactive in ushering in both the implementation and regulation of cryptocurrencies. The central bank has developed a partnership with the SEC in order to establish “cooperative oversight.” SEC Chairman Amatong

explains their cooperation:

“We already discussed the matter with the BSP, since the BSP is also interested and we are also interested […] The discussion […] [involves] joint cooperative oversight over [cryptocurrency exchanges] engaged in trading.”

Back in 2016, the BSP deputy director Melchor Plabasan made clear his positive outlook on the potential of cryptocurrencies in a televised interview,

stating that:

“If you want something that is fast, near real-time and convenient, then there’s the benefit of using virtual currencies like Bitcoin.”

Final draft builds on months-long efforts to create effective legislation

As previously reported by Cointelegraph, this upcoming draft is the just the latest installment of the SEC’s attempt to regulate the cryptocurrency sector. In November 2017, the SEC announced that it would move to legalize digital currencies by classifying them as securities, using the example of new regulation in the United States, Malaysia and Hong Kong. The SEC chairman and then-commissioner Emilio Aquino shed light on the developments in a news conference:

The direction is for us to consider this so-called virtual currencies offerings as possible securities, in which case we will apply the Securities Regulation Code. The heightened frenzy and increasing popularity surrounding Initial Coin Offerings has pushed authorities to lay down new rules to protect consumers.” In August 2018, the SEC released their draft rules for public feedback. According to the official statement released by the local SEC, any company registered in the Philippines seeking to run an ICO must submit an initial request to the commision, establishing whether their token qualifies as a security. Companies must submit their assessment requests no less than 90 days before they plan to launch their sale period. The SEC will then review the request within 20 days and provide its findings in a written report.

The report also said that if ICOs were only to be distributed among 20 people or less, then registration with the SEC may not be compulsory. The proposed legislative framework seeks to set out clear rules to avoid the creation of fraudulent ICO projects. The SEC has been proposing to regulate crypto assets since late 2017. In April, the Philippines also floated the notion of defining cloud mining contracts as securities, given that the investors of the data centers operate the process via “investment contracts.” The SEC specified that they invited banks and investment houses, along with the investing public, to submit feedback on the proposed rules and set a deadline of Aug. 31.

Crime and punishment: The government cracks down on scams

Like most countries in which cryptocurrency is a burgeoning platform, the Philippines has been victim to a number of scams, as naive investors seek quick returns on offers that are too good to be true while regulators scramble to keep up. In May, an email circulated using the name of President Rodrigo Duterte, along with high-profile members of the Senate, encouraging them to part with their hard-earned pesos in order to invest in cryptocurrency, with the promise of high returns. The presidential spokesman for the Philippines was forced to step in and make a statement denouncing the email scam after President Duterte’s brother’s name was used in conjunction with the scandal. In his official statement,

Roque said:

“For your information, now that the President’s brother [is being dragged into that cryptocurrency scam], the President has asked me at least three times to announce and inform the public not to entertain any person peddling their alleged influence with the President, including his relatives.”

In another scandal, the Philippine’s SEC issued a warning to investors about Onecash Trading, another digital currency provider promising attractive returns of over 200 percent to investors in

only eight weeks:

"Facebook Account Onecash Trading is inviting the public to sign up to their website through a sponsored link and deposit an amount of P1,000 [$20] as an enrollment fee. Upon activation thereof, a member may opt to become a Trader with a promise receiving 25 percent return of investment every Thursday for eight consecutive weeks without doing anything, or to be a Builder wherein a member shall be receiving P 50.00 [$1] per direct and indirect invites, up to the 10th level."

The SEC stated that all investment schemes that make use of either fiat money or cryptocurrencies are deemed securities and are subsequently required to comply with existing regulations in the Philippines. The statement also came with a warning: Those who fall foul of the law could end up serving 21 years in prison as well as paying up to $100,000 in fines.

Cryptocurrencies are a relatively recent phenomenon for most countries. Their sudden skyrocketing into the very center of both public consciousness and the world of finance has often caught governments and issuers by surprise. As a result of this, governments are often on the back foot when it comes to legislation, leaving the door wide open for scammers. An example of this is the January hack of Coincheck in Japan, which led to the theft of $532 million worth of NEM. Anger at the hack was compounded by the fact that Coincheck was not registered with Japan’s Financial Services Agency and was therefore not subject to the same level of scrutiny as other exchanges in the country. The exchange froze all transactions and issued an apology. The Coincheck security compromise is indicative of wider issues in the crypto world, with over $1.2 billion worth of cryptocurrency stolen worldwide in 2017 alone. However, investors and regulators alike are learning from their mistakes. With the Philippine government taking steps to crack down on cyber crime, the wild west environment that has allowed startups and scammers to flourish in equal measure is soon to draw to a close.

The current legislation put in place by the Philippine government to deter cyber criminals has been deemed too tepid for some. Opposition politician Senator Leila de Lima is pushing a bill through the senate that seeks to impose drastically stricter punishments for crimes relating to cryptocurrencies. In her authority as a former justice secretary, de Lima used the April 4 arrest of two individuals for an alleged P900 million ($17.2 million) Bitcoin scam to emphasize the need for Senate Bill No.

1694 to be passed:

"I hope that this occurrence will push my esteemed colleagues in the Senate to take my proposed bill seriously and help pass it into law soon. Knowing that virtual currency resembles money, and that the possibilities in using it are endless, higher penalty for its use on illegal activities is necessary.”

De Lima provided a list of illicit activities that could use cryptocurrencies:

"Where unscrupulous individuals entice unsuspecting people to purchase fake Bitcoins, sending a virtual currency as payment for child pornography or a public officer agreeing to perform an act in consideration of payment in Bitcoins [direct bribery].”

De Lima’s bill would determine the severity of the criminal activity by the equivalent value of the funds raised through illegal activity. Depending on the amount illicitly raised and the circumstances in which the funds were raised, individuals could face lengthy prison sentences or even the death penalty.

Cryptocurrency and blockchain could help unite the Philippines fragmented payments sector

In a bid to keep the country at the forefront of the ever-expanding crypto frontier, the Philippine government has created the Cagayan Economic Zone Authority (CEZA). With countries like Malta and Switzerland already ahead of the curve in welcoming both blockchain and cryptocurrencies, the CEZA is the country’s response to the ‘Crypto Valley’ of Switzerland’s Zug canton. The Philippine government permitted 10 blockchain and cryptocurrency companies to operate in the zone, with the aim of promoting economic growth and generating jobs for its citizens. In spite of appearances, the zone isn’t just a tax haven free-for-all. Companies are required to contribute no less than $1 million over a two-year period, which, in turn, is topped up by up hundreds of thousands of dollars in fees. CEZA deputy administrator for planning and business development Raymundo T. Roquero explained what businesses must do to be able to operate

in the zone:

“When they apply, they will pay an application fee of $100,000 (P5.35 million) [and a] license fee of $100,000. Then you go into probity checks, then application programming integration (API), which costs an additional $100,000.”

In a ceremony granting licenses to operate in the zone in April, Roquero commented on some of the applications that had

been successful:

“These are offshore companies, and they have committed investments of $1 million (P534.6 million) each. GMQ intends to build [its] infrastructure in Sta. Ana, Cagayan […] and will have an incubation period of two years, so they are already allowed to operate here in Manila.”

Crypto activity in the Philippines, however, is not confined to the CEZA alone. The U.S.-based company ConsenSys has launched Project i2i — short for “island-to-island,” a payment network built on Ethereum that aims to connect the 400 rural community banks across the Philippines. Although there are evidently banks to serve the country’s many rural communities, they are neither connected to any wider electronic networks nor international money transfer systems, meaning that thousands of people are without a means of making quick and reliable payments.

The project uses a web API in order to allow banks to connect to a blockchain backend. This allows users to both carry out transactions and to make use of smart contracts on permissioned blockchain via ConsenSys’ Kaleido platform. Transactions signed through this system will allow for the pledging of digital tokens corresponding to an amount of Philippine pesos in an off-chain account, as well as redeeming and transferring tokens among other platform users.

Success stories help the government to keep an open mind about cryptocurrencies

In spite of a stumbling start to the outright acceptance of cryptocurrencies, the Philippine government is clearly waking up to the many advantages that the technology can bring. This change has not gone unnoticed by some of the industry players. In an interview with Nikkei, FintechAlliance chairman

Lito Villanueva said:

“With these startups come huge investments in their portfolio. Surely, each country would want to take a piece of the action. Taking blockchain and fintech players in with enabling regulations and potential investment incentives would surely make the game more exciting.”

Some of the nation’s startups have already brought in considerable investment. Perhaps the Philippines’ most well-known fintech startup success story, Coins.ph, raised $5 million in a Series A funding round, securing investment from Naspers and Quona Capital. Other Philippine crypto pioneers include Bloom Solutions and Satoshi Citadel Industries. Aiai Garcia, global business development lead for Consensys in Asia-Pacific commented on how the Philippines central bank’s openness toward cryptocurrencies had benefited the industry

within the country:

“Today, the Philippines has one of the most advanced blockchain payments apps in the world [Coins.ph], which provides 1.5 million Filipinos alternative access to their finances and other value-added services. [Philippine] regulators were also among the first to announce the regulation of Bitcoin as security."

It appears that the government is aware that the opportunities for fintech companies can bring benefits for itself. Department of Finance spokesperson

Paola Alvarez said:

‘’Secretary [Carlos] Dominguez is really pushing for the application of financial technology. He wants to harness fintech to improve business, for example, payment of taxes online."

As both cryptocurrency and blockchain technology gain footing across the globe, the potential benefits for the underdeveloped Philippine fintech industry are hard to deny. The disparate and fragmented nature of the island’s financial system could be revolutionized thanks to initiatives such as i2i, along with the nation’s many payment apps that have sprung up in recent years. With eager anticipation from high-profile government figures, the ICO regulations seem set to take the next step in defining the role of cryptocurrency in the nation’s future.

Article Produced By
Henry Linver

Henry Linver is a freelance journalist. He’s interested in how blockchain has the potential to radically change the world we live in and the transformative power of crypto.

https://cointelegraph.com/news/from-kazakhstan-to-uzbekistan-how-cryptocurrencies-are-regulated-in-central-asia