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Coinbase Suspends Trading for $MULTI, $VGX, $OOKI, DDX, JUP, BOND

by Blockchain NewsSeptember 6, 2023

Key takeaways

* Coinbase suspends trading for BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX).

* The decision was based on “recent reviews” to ensure the assets meet Coinbase’s listing standards.

* Users can still access and withdraw their funds in the suspended assets.

Coinbase, one of the world’s largest cryptocurrency exchanges, announced the suspension of trading for six cryptocurrencies: BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX). The suspension took effect on September 6, 2023, at approximately 9 AM PT, according to a statement released by the company.

Regulatory Compliance and Listing Standards

Coinbase stated that the decision was made after “regularly monitor[ing] the assets on our exchange to ensure they meet our listing standards.” The company did not elaborate on the specific reasons for the suspensions but emphasized that it was part of their ongoing compliance efforts. The announcement received 8,862 views, 8 reposts, 4 quotes, 25 likes, and 1 bookmark within hours of being posted.

User Impact and Next Steps

For users holding any of the six affected cryptocurrencies, Coinbase assured that “your funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.” The company directed users with further questions to their help center at help.coinbase.com.

Market Response

The delisting of these coins are announced on 24 August. Typically, the delisting of a coin from a major cryptocurrency exchange triggers a downtrend for that asset. For instance, Multichain (MULTI) experienced a significant surge on September 4, spiking over 115% to reach a high of $2.447. However, before its suspension from Coinbase, the coin has retraced to $1.286.

Similarly, Ooki (OOKI) saw a 2.5% increase with a price amplitude of 19%, reaching $0.002282 on September 4. Before the delisting, it has declined to $0.00189.

Given these market responses, it’s crucial for investors to monitor coins that are slated for delisting and consider selling off their holdings when prices pump prior to the suspension.

Implications for the Cryptocurrency Industry

The suspension of these six assets highlights the ongoing challenges that cryptocurrency exchanges face in balancing regulatory compliance with a diverse asset offering. It also raises questions about the criteria used by exchanges like Coinbase to evaluate the cryptocurrencies they list.

Conclusion

Coinbase’s decision to suspend trading for six cryptocurrencies underscores the exchange’s focus on regulatory compliance. While the immediate market impact remains to be seen, the move serves as a reminder of the evolving landscape of cryptocurrency regulations and the importance of due diligence for both exchanges and investors.

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Missing lawsuit response date, Ooki DAO faces default judgment.

by Blockchain NewsJanuary 12, 2023

El Salvador has recently passed historic legislation that will provide the legal basis for a Bitcoin-backed bond to be issued in the country. This bond, also known as the “Volcano Bond,” will be put toward the reduction of the country’s overall debt as well as the funding of the construction of the “Bitcoin City” that is envisioned for El Salvador.

On January 11, 62 individuals cast their ballots in support of the measure, while 16 individuals cast their ballots against it. When President Bukele gives the bill his stamp of approval, it will be well on its way to being enacted as a statute.

As stated by the cryptocurrency exchange Bitfinex, which is the technology provider for the bonds, the Volcano Bond, which is also known as Volcano Tokens, would make it possible for El Salvador to raise capital to pay down its sovereign debt, fund construction of the Bitcoin City, and create Bitcoin mining infrastructure. All of these goals could be accomplished with the proceeds from the sale of the bonds.

The bonds were given the volcanic description because of the location of the country’s Bitcoin City, which is planned to become a self-sustaining crypto-mining center that will be fueled by hydrothermal energy obtained from the nearby Conchagua volcano. As a direct result of this, the bonds were presented in the form of an active volcano.

According to Bitfinex, the city would function as a special economic zone, analogous to those that can be found in China. Such a zone would offer residents of the city tax breaks, rules that are friendly to cryptocurrencies, and other incentives to encourage them to engage in Bitcoin-related business.

It is anticipated that the issuance of these bonds will bring in one billion dollars for the country, of which half a billion dollars will be allocated to the building of the special economic zone. The first hypothesis suggested that the maturity date of the tokenized bonds would be in ten years, that they would be denominated in U.S. dollars, and that they would bear an annual interest rate of 6.5%.

In addition, the measure creates a legal framework for all digital assets that are not Bitcoin, in addition to those that are issued on Bitcoin, and it also establishes a new regulatory body that will be responsible for administering securities legislation and providing protection from malicious actors.

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Tagged : Cftc / Dao / News / OOKI / Regulation

CFTC Files First Lawsuit Against DAO

by Blockchain NewsSeptember 23, 2022

The Commodity Futures Trading Commission (CFTC) has filed its first lawsuit against a decentralized autonomous organization (DAO).

The holders of governance tokens have also been sued alongside the accused DAO.

As part of the lawsuit, a $250,000 penalty and settlement have to be settled by bZeroX, LLC and its founders – Kyle Kistner and Tom Bean.

The bZx protocol gained popularity in 2020 after suffering code exploits. It resulted in the loss of hundreds of thousands of dollars with crypto.

According to The Block, the CFTC’s action, including filing a lawsuit against Ooki DAO, could have a broader impact than a lawsuit against the DAO. Ooki DAO in 2021 was used to govern the protocol as part of a decentralization effort.

The suit was filed in the U.S. District Court for the Northern District of California.

The CFTC accused Ooki DAO of using its structure to evade regulatory oversight in its complaint.

“A key bZeroX objective in transferring control of the bZx Protocol (now the Ooki Protocol) to the bZx DAO (now the Ooki DAO) was to attempt to render the bZx DAO, by its decentralized nature, enforcement-proof. Put simply, the bZx founders believed they had identified a way to violate the Act and Regulations, as well as other laws, without consequence,” the CFTC said.

This move by the CFTC also proves that DAOs are not immune “from enforcement”.

“The bZx founders were wrong, however,” the agency stressed. “DAOs are not immune from enforcement and may not violate the law with impunity.”

According to the lawsuit, Ooki DAO has been identified by the CFTC as “an unincorporated association comprised of holders of Ooki Tokens.” They are liable in the suit.

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Tagged : Blockchain / Crypto / Dao / Lawsuit / Legal / OOKI