bitcoin exchange

Today, New York Attorney General Eric T. Schneiderman initiated the Virtual Markets Integrity Initiative, a reality discovering investigation into the arrangements and practices of platforms utilized by purchasers to exchange virtual or “crypto” monetary forms like bitcoin and ether. As a component of a more extensive push to secure cryptographic money speculators and purchasers, the Attorney General’s office sent letters to thirteen noteworthy virtual cash exchanging platforms asking for key data on their activities, inside controls and defends to ensure client resources.

The attorney general is asking for data on the platforms’ activities, inside controls, and safeguards to ensure client resources, as per an announcement from Schneiderman’s office. “As the letters explain, the initiative seeks to increase transparency and accountability as it relates to the platforms retail investors rely on to trade virtual currency, and better inform enforcement agencies, investors, and consumers,” Schneiderman said in a statement.

Platforms

The Investor Protection Bureau of the Office of the Attorney General sent letters to the following virtual currency trading platforms:

The initiative, in which the attorney general’s office sent letters to 13 virtual cash exchanging stages, tries to expand straightforwardness and responsibility as it identifies with the online offices that retail speculators depend on to exchange virtual money and better educate requirement offices, financial specialists, and shoppers.

Virtual Markets Integrity Initiative Questionnaire

The letters sent to the platforms include the questionnaire. It comprised of following sections:

  • Ownership and Control
  • Basic Operation and Fees
  • Trading Policies and procedures
  • Outages and Other Suspensions Of Trading
  • Internal Controls
  • Privacy and Money Laundering
  • Protection against Risks To Customer Funds
  • Written Materials

“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms,” said Attorney General Schneiderman. “Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”

earn.com

Coinbase is quickly ramping up its merger and acquisition operations, as the cryptocurrency exchange and brokerage giant announced on Monday that it has completed its second acquisitions in as many weeks: bitcoin startup Earn.com.

The paid messaging platform — which was originally incarnated as a bitcoin mining startup called 21.co — rewards users with cryptocurrency for answering emails, filling out surveys, and completing other micro-tasks.

Terms of the deal were not made public, but Earn.com CEO Balaji S. Srinivasan wrote in a blog post that “the total value of cash, cryptocurrency, and equity returned to our shareholders is now in excess of the capital invested in the company.”

The company had raised approximately $116 million over multiple funding rounds and at one point was the industry’s best-funded startup. Sources close to the discussions had previously said that the deal would likely exceed that figure, and this comment suggests that it was at least in the same ballpark.

Srinivasan will join Coinbase as a senior executive, becoming the company’s first chief technology officer, while the rest of the Earn.com team will also join the firm and work to integrate the company’s paid messaging platform into Coinbase’s infrastructure.

“If we’re successful in our long-term goals, we will be able to turn the billions of smartphones worldwide into a new source of work. Open the Earn.com app in any country — and receive a personalized, targeted list of paid microtasks and emails just for you,” the company wrote in a blog post. “Thanks to the blockchain, anywhere there’s a phone, there’s a job.”

The acquisition was the second announced by Coinbase in April alone.

As BlockExplorer reported, Coinbase announced last week that it had acquired Cipher Browser, a one-man startup that had built a mobile ethereum wallet and decentralized application (DApp) browser. Cipher’s developer, Peter Kim, joined the company as the engineering team lead for Toshi, Coinbase’s ethereum wallet and DApp browser.

Featured Image from Earn.com/Twitter

smartphone

Coinbase has acquired Cipher Browser, an ethereum wallet and Web 3 browser that allows mobile users to access decentralized applications (DApps) that run on the Ethereum blockchain.

The San Francisco-based cryptocurrency exchange and brokerage platform made the announcement on Friday, just weeks after revealing that it intended to work to ensure that its products were compatible with ERC20 tokens.

Coinbase already has its own mobile ethereum wallet and DApp browser, Toshi, which is available for both iOS and Android devices. In addition to letting mobile users access DApps like CryptoKitties, the app also has a built-in messaging system, which uses the Signal protocol to offer end-to-end encrypted chats.

Terms of the deal were not disclosed, but the company did reveal that Peter Kim, Cipher’s creator, would join Coinbase as Toshi’s new head of engineering and work to integrate many of Cipher’s features into Toshi.

One of those features will be support for testnets, which allow developers to test their apps in a sandbox that mimics real-world implementation without having to risk actual funds. The lack of testnet support in Toshi had been a sticking point for DApp developers.

That Kim will immediately transition to developing Toshi is not surprising, as Emilie Choi — Coinbase’s new vice president of corporate and business development — is a fan of “acqhiring,” a strategy whereby a firm buys out another company primarily for the staff and their expertise.

As BlockExplorer reported, Coinbase is also rumored to be in discussions to acquire Earn.com, a paid messaging platform that rewards users with cryptocurrency for replying to emails and completing other microtasks.

Coinbase also recently launched a venture capital fund, which will provide cryptocurrency startups with seed funding. The fund will open with $15 million, and the company said this number will grow along with Coinbase itself.

Featured Image from Pixabay

 

Digital currency exchange giant Coinbase announced via their official blog that they’ll soon be supporting Ethereum-based ERC20 tokens across their various platforms, including GDAX and the newly launched Coinbase Index Fund.

Coinbase currently offers only four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The addition of ERC20 token support opens up the possibility of Coinbase adding one or more of the over 500 ERC20 tokens that exist on the market currently.

Coinbase itself only lists cryptocurrencies after they’ve been listed on GDAX, though Coinbase points out that just because an asset is offered on GDAX doesn’t necessarily determine if it’s offered via Coinbase as well. Coinbase cites liquidity and price range as factors that go into choosing an asset for listing.

On GDAX, Coinbase states that it’s waiting for further clarity on regulation and the effect it may have on the classification of specific assets (ie. a security, commodity, or currency).

Both Coinbase and GDAX supporting ERC20 tokens means there will soon be a pathway to recover any funds customers lost by sending ERC20 tokens incorrectly to an Ethereum address – a mistake that is surprisingly common.

Coinbase offers secure wallets for substantial value crypto holders through Coinbase Custody, which will also support ERC20 tokens. Coinbase Custody too is likely to offer additional asset storage beyond what is offered via GDAX or Coinbase proper.

Lastly, for Coinbase’s newly launched Coinbase Index Fund, the Coinbase Asset Management division will follow their previously announced approach, that any assets added to GDAX will automatically have its market cap applied to the Index Fund’s weighted average.

Coinbase took the opportunity to reiterate that despite the newly added support for ERC20 tokens, no specific asset support or listings are being announced at this time.

coinbase

Cryptocurrency exchange and brokerage giant Coinbase is rumored to be engaged in discussions to acquire bitcoin startup Earn.com.

Citing sources close to the situation, CoinDesk reports that the San Francisco-based Coinbase — which reportedly garnered more than $1 billion in revenue last year — is engaged in discussions to acquire Earn.com, a cryptocurrency-based paid messaging platform.

Earn.com — formerly 21.co — allows users to earn bitcoin by answering emails or completing tasks (such as registering for a token airdrop). Conversely, users can utilize the service to pay for prominent individuals or subject matter experts to read and respond to their emails, which would likely otherwise be ignored.

The sources cited in the publication gave wildly-varying estimates about how much Coinbase — or one of the other companies interested in acquiring Earn.com — would end up paying for the startup. One said it could go for as little as $30 million, while another “who is directly involved in the discussions” claimed that the total value of the acquisition — which could include a compensation package comprised of cash, cryptocurrency, stock, and earn-out — would probably exceed $120 million.

While the purchase is far from a done deal, the news that Coinbase is seeking to leverage its capital to expand through acquisitions does not come as a surprise.

Indeed, despite the fact that Coinbase has historically made few acquisitions, rumors about potential deals have abounded since the firm hired Emilie Choi — LinkedIn’s former head of mergers and acquisitions — as its new vice president of corporate and business development.

Choi oversaw more than 40 such deals before leaving LinkedIn earlier this month, and she has signaled that she intends to keep busy now that she has taken the reins at Coinbase.

“There are a lot of great pre-IPO companies, or even the tech titans, that are not so heavily involved in M&A right now,” she told tech publication Recode. “Coinbase actually is in a position to do a lot of M&A.”

Featured Image from Pixabay