The field of cryptocurrencies has been affected significantly because of the ongoing bear market and that, in turn, has led many to question the entire model. The rise in issues has also caused many regulatory bodies and governments to step up and intervene in the process.
The latest example is the Singapore International Commercial Court [SICC], which found that the operator of Quoine, a popular cryptocurrency exchange, wrongfully reversed seven trades from electronic market maker B2C2 in April 2017.
The Court revealed that the Singapore-based exchange was guilty of a contract breach as well as a breach of trust. The court document said:
“The plaintiff claimed that the defendant’s reversal of the trades was in breach of the Terms and Conditions which governed the trading relationship between the plaintiff and the defendant at the material time, and was thus a breach of contract.”
The document further stated:
“Further, the plaintiff also claimed that the defendant held the proceeds of its account on trust for it and that the unilateral withdrawal of the BTC which had been credited to its account was therefore in breach of trust.”
Back in 2017, Quoine had initiated seven sell orders for Ethereum to Bitcoin transactions at the rate of 10 BTC for 1 ETH, which according to reports was 250 times more than the existing market rate. Once the transactions concluded, B2C2 received the proceedings of the seven orders that were reversed the next day by Quoine.
The current legal proceedings come after a case was raised by B2C2 asking for the recovery of 3,092 BTC. With the current ruling, the court has not explicitly asked Quoine to return the BTC, following which the SICC stated:
“The plaintiff’s remedy lay only in damages which, if not agreed, will be assessed at a subsequent hearing.”
Post the judgment, Quoine’s CEO, Mike Kayamori, claimed that the exchange was going to review the judgment and consider the options to file for an appeal.
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Bitcoin’s 2017 bull run was fueled by FOMO & hype; present run more fundamentally driven, claims report
Here we go again. Another bull run. Another “hype session” among investors as Bitcoin rises again. The cryptocurrency market is well known for its incredible shift in market sentiment, especially on the back of the world’s largest cryptocurrency surging again.
Bitcoin not only reached its 16-month high today, but it also recorded a growth of 15 percent over the week. This has contributed to several analysts and industry insiders speculating how high Bitcoin will go, with Anthony Pompliano claiming that the digital currency will soon cross its all-time-high valuation of nearly $20,000 and reach a massive $100,000 by 2021.
These predictions have definitely contributed to the coin’s growth as while the present surge is similar to the 2017 rally, it’s not driven by FOMO alone.
A recent comparison drawn out by the SFOX Volatility report compared the preset rally with the bull run of 2017.
The report suggested that the rally of 2017 was largely driven by ‘FOMO.’ When Bitcoin started climbing the valuation ladder, word got out and many investors discovered virtual assets for the first time. The rally of 2017 was mainly fostered through hype and speculation, since there were no major readings or past data to back the rising price.
The present run, while similar, is different in some aspects, one of them being that Bitcoin has a larger user base now than in 2017. While FOMO remains a major factor in driving the price up, the current surge is also backed by developments in the ecosystem, such as the entry of retail investors and huge financial/non-financial institutions joining the crypto-bandwagon.
Facebook’s crypto project, Libra, and Bitmain’s pursuit for a U.S IPO have validated Bitcoin and the rest of the cryptocurrency market, a luxury not available to the market of 2017. The present rally thus, is more mature than the 2017 rally as the present market’s fundamentals are more data-driven.
There remain some stark similarities in the trends however. For instance, in 2017, the push from $9000 to $11000 took place in a period of 7 days. The current push from around $8800 to $11000 came to be in 8 days.
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