McAfee the publisher of the well known McAfee Anti-virus software, was arrested in October 2020. The arrest had nothing to do with his software, it was related to a few ICOs (Initial Currency Offering) that the gentleman had promoted some time ago. Yes this was law enforcement working on the crypto industry. Some in the industry did not agree with the move but, it needs to be understood in its entirety – before passing judgements.
While nothing could stop McAfee from promoting those ICOs, he apparently did not explicitly disclose the fact that, he was being paid to do the job. The legal implication made is that, investors were likely to feel that, he was giving his unbiased opinion on those specific projects or cryptocurrencies. The charge simply put was that, McAfee intentionally tried to mislead prospective investors. Interestingly this was just one case in which, the US enforced the law against the crypto industry.
We also had another case where, a reputed crypto exchange was pulled up for doing something wrong or unfair. ICOs that have not sought permission or have used non approved procedures, have also been legally dealt with. So is the US being unfair to the crypto industry? Is the US planning to discourage crypto activity? While opinions could differ, we at Glitzkoin have taken an unbiased view of these happenings. We explain that in just a moment.
The crypto industry was born out of tech minds, cryptocurrency remains one of the most unique and powerful innovations in the world of finance. What was until recently known as the ‘crypto community’, was made up of techies with a sharp knowledge of the way in which the concept evolved, developed and operated. It is extremely likely that, the first phase of investors in cryptocurrencies were in fact techies. Not unfair to say that the crypto industry, has thus far been tech centric. The changing landscape of crypto space is very different, it is no longer limited to a tightly knit group of technical experts.
Cryptocurrency is moving closer to conventional finance – this is clear, steady and inevitable. We have just seen crypto exchanges like Kraken being given a US banking license. We are also seeing a strong move by banks, as they seek permission to include crypto activities in their operations. In the opinion of Mikhail Koslov the Russian business advisor on the Glitzkoin team, ‘… we are heading to a point where, cryptocurrency and conventional finance will merge and operate seamlessly. There are an increasing number of reasons for this to happen, interestingly the coronavirus pandemic is just one of those reasons’.
The changing world of cryptocurrency combined with increased interest in crypto trade, is drawing a whole new group of crypto investors. A large chunk of this new group would be non-technical players. Simply put, the group could include investors from all walks of life and surely, those from conventional capital and stock markets. These are investors who would have scarce knowledge of blockchain and are, unlikely to be familiar with the risks and security threats related crypto trade. An increased investor base no matter where that comes from, is good for the industry. Having said that, it is also important that cryptocurrency becomes safer to trade.
The US move to ensure that, things remain fair and safer in the crypto industry stems from this shift in investor profile. The industry needs to shed its tech centric mood and become more investor centric. This alone will usher in a scenario that is beneficial for all stakeholders. We obviously should see crypto investor interests safeguarded, across the globe – not just the US. But we have at least seen a resolute start to the process.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]