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Ripple files ‘Notice of Removal’

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Ripple files 'Notice of Removal'

Ripple vs XRP

Before we delve into this article, a distinction must be made.  Ripple and XRP are two different things.

Ripple

  • A software company that has developed a platform known as xRapid
    • This platform uses XRP and its associated blockchain to function

XRP

  • An open source cryptocurrency
    • Primarily owned by Ripple, however it remains purchasable by anyone

This is what Ripple would have you believe – and it very well may be the case.  However, when an entity owns the overwhelming majority of a particular asset, at what point do they cease to be separate.

The Case

The issue at hand is whether or not Ripple acted as an unlicensed security broker, and sold XRP as a security.
Over 100 individuals have claimed that they were unaware of the distinction between Ripple and XRP, and that they believe they were sold a security.  They believe that Ripple marketed XRP as an investment, and made millions off the back of investors.

With the massive decline seen throughout the market this past year, those invested in XRP are angry, as Ripple has not been held accountable for the state of the coin.  The result is this lawsuit, which sees the plaintiffs asking for over $160 million in damages.

The Move to Federal

Those defending Ripple have filed a motion to have the case moved, from state court to a federal one.  They wish to do so on a variety on basis.

  • Size of the claim
  • Number of plaintiffs
  • Geographical location of plaintiff’s range outside of the state

It is believed that the Ripple team wants to be tried before a federal judge due to a perceived higher chance of winning their case.  This better chance is thought to be due to two main reasons.

  • State Courts have local jurys that often side with the defendants that are viewed as ‘locals’
  • Judges are often elected, rather than appointed.  Some believe this may skew their verdicts, as politics will play a role in their decision.

As of now, the case has not officially been moved to federal court.  If the ‘notice of removal’ is successful, and the move does occur, only time will tell if the strategy is sound.

Market Dominance

Despite the on-going struggles of XRP, the coin has fared well with their respective market dominance.  In recent weeks, we have seen the coin surpass Ethereum as the second largest cryptocurrency on multiple occasions. 

Coinbase Hesitant?

Although XRP enthusiasts have been calling for Coinbase to list XRP on their platform for years, it is believed that Coinbase is hesitant to do so.  It is reasonable to believe that this hesitancy stems from the on-going case regarding the security status of XRP.  With Coinbase actively looking to expand their offerings, they will surely list XRP once more clarity is afforded to the situation through either the SEC or this court case.

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Security Token News

PCF Capital to Host $250 milllion DSO through KoreConX

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PCF Capital to Host $250 milllion DSO through KoreConX

$250 million DSO

One of the largest digital security offerings, to date, has recently been announced. In an upcoming DSO, Australian based, PCF Capital, will be hosting a whopping $250 milllion event, aimed towards the mining and resource sector.

This DSO will be made possible through the use of KoreConX and their digital securities issuance platform. By choosing to use KoreConX, PCF Capital will be gaining access to the KorePartners. This is a network of strategic partnerships which KoreConX has been developing for some time.

This offering will be open to accredited investors in select countires, including the United States, Canada, Australia, and more.

Commentary

In making their announcement, representatives from each, PCF Capital and KoreConX, took the time to comment on the development discussed here today. The following is what each had to say on the matter.

Liam Twigger, Managing Director at PCF Capital, stated,

“We are a global company that requires a global solution. We selected KoreConX because it will allow us to remain compliant with regulations not only in the USA and Australia but in multiple other jurisdictions around the world…This is a very important step in the history of PCF and we want to make sure our investors are protected and have a platform to be able to manage the entire lifecycle of the digital securities. That’s why we are using the best possible tools for the job.”

Oscar Jofre, CEO at KoreConX, stated,

“We are disruptors and what better way to do that than work with one of the world’s oldest sectors adopting Digital Securities for their offering. PCF Capital’s global reputation in the mining sector made the decision easy for us to bring them on as clients to our platform…Now is the time for the traditional investor to understand the value and trust of digital securities. Having a global offering of this magnitude heavily investing in a Digital Securities Offering is great for the industry as a whole. Many more will follow once the infrastructure is in place for it, and this is what we are doing with the KoreProtocol.”

PCF Capital

PCF Capital is an investment banking group, which is headquartered in Australia. Since being founded in 1999, PCF Capital has gone on to manage over $3.5 billion in deals.

Operations are overseen by Managing Director, Liam Twigger.

KoreConX

KoreConX was founded in 2016, and is headquartered out of New York. Above all, KoreConX has been striving to become the most comprehensive platform for private capital markets. This means developing in-house solutions, and partnerships which facilitate needs within the digital securities sector. To date, KoreConX has begun seeing adoption of their platform, as multiple DSOs are scheduled.

Company operations are overseen by CEO, Oscar Jofre.

In Other News

I recent months, KoreConX has found themselves in our headlines on various occasions. Check out the following articles to learn a bit more about what this promising company has been up to.

KoreConX the Protocol of Choice for Upcoming Digital Security Offering by 3iQ

BankRoll Ventures and KoreConX Aim to Tackle Security Token Offerings

KoreConX Partners with SME Brokers

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Security Token News

Blockport STO Fails to Gain Traction – Platform to Shutdown

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Blockport STO Fails to Gain Traction - Platform to Shutdown

Failure to Launch

On a disappointing note, Blockport has announced the cancellation of their ongoing security token offering. After launching the event, roughly 1 month ago, the team has indicated that they have failed to attract their minimum threshold of investments.

This comes as a letdown to the industry, as Blockport represented one of the first security token offerings to be offered through the Tokeny platform. To date, only a handful of STOs have taken place through ANY issuance platform.

Future Aspirations

While Blockport will be returning investments to the few participants in their STO, they have indicated that this is not the end for them. Their intent is to scale back operations in the short term, reflect, and establish a path for future growth.

This means that the platform will be shutting down in the coming weeks, revering to a ‘development mode’.

Commentary

Blockport CEO, Sebastiaan Lichter, elaborated on the cancellation in a statement to the public. The following is what he had to say on the matter.

“In the past few months our team has worked extremely hard to launch the first round of our STO, and yesterday this ended after being open for almost one month…In short, the results of the fundraise are not sufficient to proceed with the issuance of BPS tokens.”

Despite this, Sebastiaan Lichter remained confident in the future of blockchain. He continued,

“We still see a lot of opportunities in this industry and have built a top performing trading platform that many people love to use and which has had almost zero downtime or issues since we launched it in the summer of 2018…Whilst developing our platform, our goal is to explore opportunities that support a restart of the Blockport platform in the future.”

BlockPort

Operating out of Amsterdam, Blockport is a Dutch company, which was launched in 2017. Under the watch of CEO, Sebastiaan Lichter, Blockport has developed and launched a trading platform, tailored toward, both, utility and security tokens.

The security token offering, discussed here today, was launched through the Tokeny issuance platform, on March 31st, 2019.

Tokeny

Tokeny is a Luxembourg based company, which was launched in 2017. Above all, Tokeny acts as an issuance platform, providing companies with solutions for the tokenization of assets. Tokeny was responsible for facilitating the Blockport STO – For their part, the event went off without a hitch.

In Other News

While the failed STO is an unfortunate situation, BlockPort is by no means alone. For a variety of reasons, there have been various deals to have fallen through in the past few months. The following articles detail a couple of these situations.

Harbor Cancels Convexity Properties STO

Due Diligence Process Delays tZERO Investment

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Security Token News

BitBond Opens Bounty Program for Live Security Token Offering

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BitBond Opens Bounty Program for Live Security Token Offering

BitBond Bounty

BitBond, a blockchain company hosting a FINRA approved STO, has recently announced the launch of a bounty program. This program was launched in an attempt to raise market awareness of their ongoing security token offering.

This STO, scheduled to be live until early June, has seen modest success thus far, with investors contributing over €2 million to date. This puts them well on their way to raising the minimum €3 million in the event.

In an attempt to ensure the minimum €3 million threshold is met in their STO, the bounty program consists of 6 main ways in which participants can be rewarded.

  • Hunter Bounty
    • Referrals leading to bounty program participation
  • Affiliate Bounty
    • 5% commission on referrals leading to investments over €10,000
  • Signature Bounty
    • Token compensation for active BitcoinTalk users which advertise the STO in their signature.
  • Creative Bounty
    • Rewards for creative advertising in the form of memes, gifs, images, etc.
  • Social Media Bounty
    • Compensation for STO promotion through qualified Twitter, Facebook, LinkedIn, and Telegram accounts
  • Content Bounty
    • Rewards for creation of articles, and videos, which raise awareness about the BitBond STO.

Bounty Programs

A bounty program is a promotional event, aimed towards raising awareness of a fundraiser. Participants in such programs are typically compensated for promoting a company with tokens. Promotional tasks are often varied, such as writing articles, attaining referrals, reporting bugs, and so on.

While bounty programs were commonplace throughout the ICO boom, the concept is new when being applied to security token offerings. Time will tell if this promotional tool is an effective one when dealing with this new form of fund raising.

Commentary

BitBond CEO, Radoslav Albrecht, commented to CrytoGlobe on the choice to host a bounty program. He stated the following.

“Since our launch in 2013 Bitbond has always worked closely with the crypto and blockchain community. This bounty program gives us the opportunity to engage further with our community, reward Bitbond early adopters and spread the news about our new groundbreaking project, the Bitbond STO.”

BitBond

BitBond is a Germany based company, which was launched in 2013. Above all, BitBond utilized blockchain to facilitate financial services. This primarily includes the issuance of business loans.

Company operations are overseen by Founder and CEO, Radoslav Albrecht.

We recently detailed BitBond and their FINRA approval – a feat not achieved by scores of applicants prior to BitBond. Check out the details to this success HERE.

In Other News

Beyond BitBond utilizing the Stellar blockchain for issuing security tokens, Stellar has experienced growing levels of adoption in recent months. The following articles demonstrate various ways in which this adoption has occurred.

Smartlands Releases Stellar Powered Wallet Supporting security Tokens

Stellar Chosen by Wevest for Security Token Offering Platform

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