Regulators Issue Warning against Cryptocurrency Fraudsters – Will Nike Compete with Facebook Coin

By dan saada April 26, 2019 Off
nike coin FB

A joint warning notice issued from the SEC’s Office of Investor Education and Advocacy along with the Office of Customer Education and Outreach at the CFTC read:  “In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in ‘mining’ farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk.”

The crypto regulators detailed on crypto-related investment scams explaining how the scammers disguised their scamming attempts as a kind of advisory firm or trading business in order to collect money from unsuspecting investors.

They also detailed how the scammers stop communicating altogether after the investors have made their investment in a digital asset like Bitcoin.

While regulatory warnings are being issued on one side, Nike is coming out with “CryptoKicks” its own digital currency.  The wide discussion is about whether Nike will beat Facebook’s coin.  Analysts opine that the cryptocurrency of Nike has a guaranteed demand, while Facebook does not have that much demand.

Nike is expected to use trademarks and might most likely build its brand around all types of games, collectibles, and rewards in order to encourage brand loyal buyers.  It is expected that if Nike CryptoKicks would be a success, digital tokens will form an important part in brand interaction – the suit will be followed by several others in fashion and sports apparel.

Ever since Genesis Global Trading launched themselves as a cryptocurrency dealer in March 2018, they have loaned digital assets worth $1.53 billion to institutional borrowers.  This is enough indication of the emerging demand for cryptocurrencies in the lending market.

Michael Moro, Genesis Trading Chief Executive Officer, stated “We expect more new entrants into the marketplace, and lending rates to correspondingly decrease. But since this space is still so new, I think the strong level of growth will continue for quite some time.”

Brave’s Browser has come with a new option where the users will be able to see Brave-specific ads, which will come as Desktop Notifications.  These advertisements are not banner ads.  Those who opt in to see these ads will be getting paid.  Brave will be distributing about 70% of its revenue to the crypto wallets of users. 

Brave, CEO Brendan Eich, stated, that the company is eventually planning to provide publishers with a tool that will help accept micropayments for individual posts rather than for subscribing.

For now, the browser will not permit withdrawals.  Users can use it to pay for publishers who will be accepting it.  Brave will be establishing a plan to verify the users before they can permit the users to withdraw the money.