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The London Block Exchange has been insolvent since autumn of 2018, alleges Peter McCormack




The London Block Exchange has been insolvent since autumn of 2018 alleges Peter McCormack
Source: Unsplash

Peter McCormack, the host of What Bitcoin Did podcast, alleged that The London Block Exchange is insolvent and that it has been insolvent since Autumn of 2018.

McCormack alleged the same in his tweet thread as he stated:

“1/ UK Cryptocurrency exchange @LBXSocial is trading insolvent and has been since Autumn 2018. Further:
– Staff have not been paid since Dec ’18
– The CEO @benjamindives has spent the pension pot
– Creditors are owed £millions
– There are no developers to fix app issues”

The exchange that was launched in Q1 of 2018 has “failed to hit growth targets” which has caused economic instability and put the business and the employees at risk.

Furthermore, his tweet read:

Failing to grow and generate income affected the functioning of the company, halting of the “app development in 2018”. In addition, the developers are “owed £hundreds of thousands”, and “Tech stack providers also owed significant sums”.

McCormack further tweeted:

“Calamitous ICO:
– Cancelled before token sale due to lack of funding
– Despite funds raised in private sale
– Partial repayment of private sale
– Some investors still haven’t been refunded
– Unknown use of private sale funds”

Moreover, the allegations by McCormack stated that the “staff and creditors are being held to ransom as the company owns no assets”, which would lead to an “administration strike” and result in a loss for both the customers and the company. The customer funds were safe and under regulatory protection, according to him.

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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