The head of UAE’s top financial regulator has called for stronger international regulations to prevent financial crimes in the cryptocurrency trading industry.
Stringent regulation is necessary to prevent wrongdoings
Richard Teng, the chief executive of the Financial Services Regulatory Authority (FSRA) at the Abu Dhabi Global Market (ADGM) explained his stance by stating, “There are grave risks of financial wrongdoings if this space is not properly regulated. Every single time a crypto coin gets lost or stolen, the confidence of investors in this asset class is severely affected.”
Mr. Teng further elaborated on FSRA’s international collaborations, “Our management is positive that our broad regulatory regime will reduce these financial risks and bring enhanced confidence into this asset class. We have also shared our regulatory arrangements with several other international regulators like the UK Treasury, SEC [US Securities and Exchange Commission] and regulators of Japan, Hong Kong and Singapore.”
ADGM’s efforts to regulate ICOs
Last year, ADGM published a guideline on initial coin offerings (ICOs) and digital currencies following massive criticism and enormous volatility in the trading prices of several popular digital currencies like the Bitcoin. UAE’s ADGM became the first financial center in the GCC region to have published a specific guideline on virtual currencies. The document explains various aspects of cryptocurrencies and ICOs, like how funds can be generated through this increasingly popular crowdfunding tool in the crypto industry. It also declares that cryptocurrencies should be treated as “commodities” and crypto tokens offered for sale during ICOs should be treated as “special investments” under the ADGM’s regulatory scheme.
Currently, ADGM is also the member of R3 consortium which comprises of over 200 members and partners across multiple industries all joined together to apply distributed ledger technologies to the global financial services industry.
2017 was a breakout year for cryptocurrencies. The price hike of popular coins aside, the sector attracted an influx of new investors. According to data from ICOwatchlist.com, a total of $2.3 bln was raised in the year from various ICO crowdfunding campaigns.
Of the project’s funded, FileCoin tops the list, successfully raising a staggering $522 mln. That’s a significant amount of capital, and it reflects investor confidence in the market.
Fast forward to 2018 and $6.7 bln has been raised from crowdfunding efforts in 2018. Telegram has attracted the most funding with $1.7 billion from their ICO pre-sale. However, they canceled their much-hyped sale back in May to the dismay of public investors. Telegram didn’t specify a reason for canceling their ICO. Speculation, though, suggests that stricter regulations may have played a major role in influencing their decision.
Telegram is not alone in pulling out of its ICO. Here are a handful of other coin offerings that went bust in the midst of their fundraising.
A Sneak-Peek at Some ICO failures
Slot N Slot
Slot N Slot wasn’t a scam, but it made our list of failed ICOs for its inability to continue with development. The project was meant to provide an extremely low-cost autonomous gambling platform accessible to anyone in the world. It was going to use Ethereum to provide its services.
The team’s idea wasn’t necessarily original. They did, however, put effort into the ICO and producing a playable beta version. During the design and development stages of the platform, developers faced a host of obstacles and difficulties. Upon this realization, they issued a press release indicating that they had failed and were altogether abandoning the project.
OneCoin was another huge ICO flop that many experts considered to be an international Ponzi scheme from the get-go. It had a website full of technical problems and spelling errors. They also lacked a working prototype, which is essential for an ICO project. OneCoin also accepted funding in fiat currency, unlike a majority of ICOs that used Bitcoin or Ether to raise capital. Several governments had already issued warnings to their citizens about OneCoin and the fact that it could be a possible scam. In fact, the Italian Government suspended OneCoin operations in its country.
Droplex initially masqueraded as a legit ICO by impersonating another company. Apparently, Droplex’s whitepaper was a word for word copy of Quantum Resistant Ledger’s own. Unfortunately, a few unsuspecting investors fell for the trap and Droplex scammed roughly $25,000 out of them. Investors who were familiar with QRL raised red flags and warned other investors, so the damage was thankfully minimal.
Previously, we looked at why so many ICOs are failing. Apart from technological issues, regional disparities, and bad project ideas, we also found out that a majority of ICOs don’t have a functional prototype for what they intend to build in the long-run. Others are even completely void of a roadmap. Some ICOs also spend a considerable amount of time perfecting their whitepapers, websites, and marketing campaigns. This, however, doesn’t justify the outrageous amounts of capital raised in initial coin offerings.
It’s up to innovators to go a step further to tell their investors the truth about their technology and what it can do to revolutionize an industry, not what they hope it might achieve someday. Giving investors the cold hard truth may be a bitter pill for some to swallow, but it will help to keep people from investing in projects that may fail.
Also, most investors nowadays don’t research projects well enough, and they end up investing in them just because others are doing so. Most ICO investors judge ICO projects based on how high the value of the token will go. An increase in token value simultaneously signals an ICO’s success which, in turn, attracts more investors.
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Some ICOs will truly create lasting change in the world with their innovative ideas. However, chances are, most won’t fulfill their promises or expectations. Only the most promising and innovative projects will remain. The rest will most likely fade out. Therefore, it’s crucial for investors to differentiate between shrewd and misleading marketing efforts and authentic product development. Establishing a clear difference between the two will help investors choose those ICOs guaranteed to succeed.
Everybody is making money in the cryptocurrency and blockchain industry. Whether you are a miner, a trader, you #HODL, program, consult, etc people are getting paid money. Lots of money. But there is another approach to making that sweet, sweet crypto that has nothing to do with the above list. It’s called an Airdrop, and basically it’s free money.
By normal standards, an airdrop is a simple act of dropping supplies, or troops, or equivalent via parachute from an aircraft. Think the Berlin airdrop, or the Apple Iphone airdrop feature used to troll people.
In the crypto world, an airdrop is the process of distributing tokens to a crypto wallet at no extra cost. Zero. Zilch. Freeeeeeee. Companies that are trying to reward loyal customers, generate awareness about a new cryptocurrency (e.g ICO) or build a database of information for marketing generally employ airdrops.
Airdrops also happen when there is a fork in a cryptocurrency. Think Ethereum (ETH) and Ethereum Classic (ETC), or Monero (XMR) and Monero Original (XMO) and Monero0 (ZMR) and Monero Classic (XMC) and MoneroV (XMV)……You get the point.
But we don’t care about any of that, right? What we want to know is how can we maximize the amount of airdrops received and make that phat phat crypto loot? You can check out this article for what airdrops are Cryptocurrency Airdrops, but in this piece we will see how to maximize the amount of airdrops you receive.
Open a Bitcointalk.org account
This may seem silly but Bitcointalk.org is one of the best resources for anything crypto related, Airdops included. Which makes this first step very important, since in many airdrops, they will request your Bitcointalk nickname to enter.
You will also find that 90% (clearly not scientific) of the airdrops are published here with some being exclusive for Bitcointalk members. It is highly recommended that you “work” your account and raise it to Jr. Member rank, although it is preferable to become a Member to obtain the maximum benefit.
**NEVER EVER GIVE OUT YOUR PRIVATE KEYS. PERIOD
Gotta register for ‘em all! Each exchange has a specific list of crypto markets they trade. No two exchanges will have the same list of crypto assets, which means if you want to take advantage of Airdrops you will have to be registered on many, many exchanges. Don’t limit yourself you the Big 5: Binance, OKEx, Huobi, Bitfinex, and Upbit. Start opening accounts on lesser-known exchanges like TradeOgre, Cryptobridge, EXMO, Cryptopia, Ethfinix, Etherdelta etc.
In many airdrops there are demand tweets, retweets, follows, Facebook page likes, join Telegram groups and so on. If you are willing to hunt airdrops, it is indispensable you open a Twitter account, a Facebook account, an Ethereum wallet and an exclusive Telegram account for airdrops.
As mentioned in the intro companies are trying to make their product shine in the overcrowded cryptocurrency world. To do so they will employ all level of marketing including influencers, paid shills (McAfee – The glorious bastard), and company reps to mount fierce marketing campaigns. If you spend enough time on social media, you will find plenty of opportunities….And scams. Don’t forget to check Steemit and Medium as well.
This may seem counterintuitive as you want to cast a wide net when looking for airdrops, but you don’t want to pull up used tires either. This will save you time and research, and we all know time is money. If the form asks for too many requirements such as your address, that you have a million followers on Twitter or take a selfie, abort that mission. Obviously, discard those who ask for mandatory donations or keys and denounce them to the community immediately.
Bitcoin Prime (Not to be confused with Bitcoin Private) is a good example of a selective airdrop. Plenty of information provided on the thread, and steps to receive the airdrop like: Follow on Twitter, join Telegram group, basic form and which exchange the asset will be traded on. This is a good blog to checkout for airdrops.
Rush to your exchange and flip that airdrop. You are not here to speculate on whether a coin has a future or not. You are here to maximize profits and make more BTC. Once you receive your airdrop, go to the exchange it is listed on and start finding the price you are comfortable selling at. Be heartless. This is free money.
If you fall asleep and do not sell at the right moment, the airdrop tokens will lose value and all this work would have been for nothing. Do not be surprised if the original token you were holding also crashes. Let us take the Zclassic and Bitcoin Private airdrop in February, a disaster of epic proportions.
For starters, Bittrex stated that they would NOT support the Bitcoin Private fork due to issues with the Zclassic wallet – #Yuge Blow. One of the largest exchanges in crypto not being able to guarantee tokens doesn’t bode well for your airdrop. The Bitcoin private fork was originally announced on December 16th and absolutely tanked the price. This is a rare example where an airdrop done wrong can have a drastic effect on price.
Security and Scams
Airdrops are an effective technique to raise awareness about a new token or project, but it can also be used to phish for people’s data, credentials and private keys. Be on guard for scams and swindlers who will try at anything to get your crypto. Store your precious crypto on secure wallets – hardware of software.
And once again NEVER share your private keys with anyone. Not even your grandmother.
Airdrops are an excellent, and legitimate, way to make extra BTC. That’s what we’re here for right? To increase our Bitcoin stack. If you follow these basic steps, you will find that money does actually grow on trees. Until regulation comes into play you should be doing everything to increase BTC. You won’t regret it when Bitcoin hits $50,000 😉