“What You Need To Know Bout Crypto #9”
Vanbex ICO accused of Fraud
Canadian police have frozen the assets and bank accounts of the founders of the blockchain company Vanbex. The founders are being accused of fraud after raising 22 million USD in a 2017 ICO for their FUEL Token. They told investors FUEL would see a massive spike in price from being used on their smart contract system called Ethereparty. Regulators say that the leaders of Vanbex, Kevin Hobbs and Lisa Cheng, made no efforts to develop the products they were selling and spent most of the raised funds on their lavish lifestyle. No criminal charges have been brought against the company leaders, but their bank accounts have been frozen and they are under fraud investigation. This type of phoney fundraising structure was a common theme in 2017 and many project leaders of scammy ICO’s are being investigated.
Bitcoin’s Price teetered around the $4,200 mark as it has closed Q1 of 2019 with its biggest gain since Q4 of 2017. Bitcoin’s price has increased nearly 11% and billions of dollars have been added to the market cap. This is intriguing as Bitwise reported earlier in March that 95% of Bitcoin’s trading volume is fake. Many believed this negative news would impact Bitcoin’s price, but those valuations never panned out. Things that could boost the price of Bitcoin is an ETF approval by the SEC and the expected Bitcoin halvening next year.
MasterCard and Visa part of 6 Billion Class Action Lawsuit
MasterCard and Visa are involved in a 6 billion dollar class action lawsuit from merchants. From 2004-2019 the two credit card companies have been overcharging merchants and limiting the types of payments they can receive. Credit cards charge merchants anywhere in excess of 3-5% per transaction. While this lawsuit will hurt the credit card companies, the biggest blow is going to be the adoption of crypto payments. Cryptos such as Bitcoin, NPXS, Stellar, Ripple, and many others can already be used in place of fiat and are accepted by millions of merchants around the world.