Cryptocurrency exchange CEO, Gerald Cotten reportedly died on December 9, 2018, and so did the password to unlock about $200 million of customers’ digital currency, which is being held in cold storage.
Quadriga CX, a Canadian digital-asset exchange managed by Cotten before his death, is in the dark in retrieving about C$190 million ($145 million) in Bitcoin, Litecoin, Ether and other digital tokens held for its customers. The exchange also, cannot pay the C$70 million in cash they are owed.
Cotten, whose death was related to complications of Crohn’s disease, was said to always be overly conscious about security – his laptop, email addresses and messaging system were all encrypted.
According to Jennifer Robertson, his widow, Cotten took sole responsibility for the handling of funds, coins and also the banking and accounting side of the business. To avoid being hacked, he moved the majority of the digital coins into cold storage, a security measure where a holder of crypto assets keeps the coins offline off a computer or server.
While his security measures are understandable, his widow said she has no information as regards to his password, business records and the cold storage. Experts brought in to hack into his systems backed out with only limited success.
Quadriga CX directors, posted a notice on their website on January 31, asking the Nova Scotia court for creditor protection while they address their financial issues.
“For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us.” the firm said.
As expected, the inaccessible million of funds as a result of Cotten’s death have raised a lot of dusts as distressed customers call for a more proper investigation into the predicament.
However, there is a ray of hope for distressed customers, as Jesse Powell, the founder of Kraken exchange tweeted that some thousands of wallet belonging to Quadriga CX is being held in their system.
“We have thousands of wallet addresses known to belong to @QuadrigaCoinEx and are investigating the bizarre and, frankly, unbelievable story of the founder’s death and lost keys. I’m not normally calling for subpoenas but if @rcmpgrcpolice are looking in to this, contact @krakenfx,” Jesse tweeted.
SafeMoon Launches Wallet Beta in Race to $1
SafeMoon, a community-driven DeFi Token largely popularised by Redditors, on Tuesday finally opened registration for the beta of its wallet in a move to further establish its leadership and move close to $1 a coin like Dogecoin.
The wallet is one of the several projects the SafeMoon team is working on to solidify the new cryptocurrency position among thousands of other coins in the market.
SafeMoon, created in March 2021 on the Binance Smart Chain blockchain, adopted a unique community wealth creation formula called tokenomics.
SafeMoon charges a 10 percent fee on transactions, with 5 percent redistributed (or reflected) to token holders while the remaining 5 percent are sent to a burn wallet. Therefore, holders earn regardless of market conditions.
SafeMoon multiplied rapidly in value after a wave of celebrity endorsements, including from rapper Lil’ Yachty, YouTuber Logan Paul, sports blogger Dave Portnoy and former Backstreet Boys member Nick Carter. SafeMoon hit a high of $0.00001375 in April 2021 before falling over 70 percent down to $0.000003919 as of June 2021 with around 2.3 million holders on the PancakeSwap exchange alone.
According to the official website, SafeMoon was first listed on PancakeSwap on the 1st March 2021, followed by: BitMart on 5th April 2021; WhiteBit on 5th April 2021; Gate.IO 23rd April 2021; HotBit 23rd April 2021; ZBG 11th May 2021; MXC 11th May 2021; Burrency 12th May 2021 and BitBns 14th May 2021.
In May, the token was audited by security auditing firm CertiK, receiving a score of 82/100. The audit report identified no critical issues, but noted one ‘major issue’ that the project’s owners have “control over tokens funded by SafeMoon’s seller fee”.
In response to the one ‘major issue’ raised by CertiK, the SafeMoon team stated that “In regards to owner control, we are a fair launch governed by a central board which is subject to governmental regulations and law. We are a legally registered entity in accordance to the law and jurisdictions in which we operate”. The CTO of SafeMoon, Thomas Smith, further stated that the team was “aware of the issues” and “[has] policies and procedures around how the contract operates to alleviate risk”.
A separate security audit identified a “vital vulnerability” in SafeMoon and hundreds of other projects which all forked from the same parent project containing the vulnerability.
The developers of SafeMoon have been described as having “little proof of previous success”, with the token having been described by some financial experts as a “pump and dump”, a “cult stock”, “meme stock”, “the furthest thing from safe” and that it “doesn’t do anything”.
After the price of a SafeMoon token multiplied by 12x during a single week in April 2021, opinion columnists in various financial magazines likened SafeMoon to a ponzi scheme or pyramid scheme, where gains to early investors were paid only by incoming investors who expected a similar rate of return, with some citing the fact that each transaction sends a portion of the transacted value to existing holders of the token, as well as a portion of the transacted value to a wallet controlled by the coin’s authors.
Hedge Funds Survey Indicates Growing Enthusiasm About Crypto, CFOs Expect Sizable Increase in Investments
Hedge funds are likely to significantly increase their crypto holdings, a global poll of chief financial officers has indicated. According to an average figure based on their forecasts, the funds will keep more than 7 percent of assets in cryptocurrency within the next five years.
The survey, conducted among 100 CFOs around the world, signals that the hedge funds are planning to markedly expand their exposure to cryptocurrencies by 2026. Reuters described the poll results as a major vote of confidence for digital assets, one that comes after the recent market decline and amid plans for stricter capital regulations.
The executives believe their funds will hold 7.2 percent of all assets in cryptocurrency five years from now, or around $312 billion based on estimates for the size of the industry, fund administrator Intertrust detailed. And while this is the average forecast of the sample, 17 percent of the respondents shared higher expectations, stating that the hedge funds will probably manage more than 10 percent in crypto.
Precise data about the sector’s current crypto holdings is not available right now but the report notes that several big names in the industry have already committed certain amounts to digital assets. Investments have been motivated by the rising cryptocurrency prices in the past year and “market inefficiencies that they can arbitrage,” the article elaborates.
While most traditional asset managers remain skeptical about cryptocurrencies, mainly citing their high volatility and uncertain future, the hedge fund survey shows a growing enthusiasm. According to David Miller, Executive Director at Quilter Cheviot Investment Management, hedge funds “are well aware not only of the risks but also the long-term potential” of crypto assets.
Among those that have already invested in crypto includes firms like Man Group which trades bitcoin futures through its AHL unit and Renaissance Technologies which announced last year that its Medallion fund could buy futures contracts as well. Reuters also reminds that hedge fund manager Paul Tudor Jones, Brevan Howard, and Skybridge Capital have invested some funds into crypto too.
The hedge funds in the Intertrust survey manage an average of $7.2 billion in assets. The price of bitcoin (BTC), the crypto with the largest market cap, rose to a record high of over $63,000 earlier this year but has since dropped to around $40,000 per coin. At the same time, it remains unclear how upcoming regulations will affect the global crypto space and ultimately the valuation of most digital currencies that exist today.
Shiba Inu Coin Price Surged as Coinbase Announced Trading on Coinbase Pro
The price of Shiba Inu coin surged on Tuesday after Coinbase announced that the meme crypto will start trading on Coinbase Pro as early as this week. This announcement follows Coinbase adding trading for dogecoin.
Following the listing of the meme cryptocurrency dogecoin (DOGE) early this month, Coinbase announced on Tuesday that the Shiba Inu (SHIB) crypto will start trading on Coinbase Pro this week.
The ERC20 crypto Shiba Inu is seen by some as an alternative token to dogecoin.
The Nasdaq-listed company says that starting immediately, Coinbase Pro users can transfer Shiba Inu tokens into their accounts. However, SHIB will not be available to New York residents. The company clarified.
Trading will begin on or after 9 AM Pacific Time (PT) Thursday, June 17, if liquidity conditions are met.
Once sufficient supply of the Shiba Inu cryptocurrency is established on the Coinbase Pro platform, trading of SHIB-USD and SHIB-USDT order books will launch in three phases, post-only, limit-only, and full trading, the company detailed.
The announcement also covers chiliz (CHZ) and the keep network (KEEP). Besides dogecoin, the company recently added trading support for a number of tokens on Coinbase Pro, including polkadot (DOT), gitcoin (GTC), enzyme token (MLN), amp (AMP), and internet computer (ICP).
The price of the Shiba Inu coin jumped over 30 percent around the time of the Coinbase announcement. At the time of writing, the price of SHIB is $0.0000089 and its market cap is $3.5 billion according to data from Coinmarketcap.
The listing of Shiba Inu coin and others can be attributed to the series of changes in the approach of the exchange company as announced a few weeks ago when Dogecoin was listed.
The revised policy came a month and a half after the crypto exchange went public on Nasdaq under the ticker COIN. Coinbase’s stock is now significantly below its initial trading price.
SafeMoon Launches Wallet Beta in Race to $1
Presco Plc to Hold Emergency Meeting to Recommend Acquisition of Private Company to Shareholders
Egypt: African Development Bank Approves Loan of €83 Million for Egypt’s Electricity Sector to Spur Economic Recovery from Covid-19
Business3 weeks ago
End Of The Road For Internet Explorer As Microsoft Pulls The Plug
Cryptocurrency4 weeks ago
National Bank of Egypt Joins Ripple Network for Cross-Border Payments
Cryptocurrency3 weeks ago
Can cryptocurrency survive regulators? Here’s what Ripple CEO says about XRP’s future
News4 weeks ago
Akeredolu Replies Malami, Open Grazing Ban in South Is Irreversible
Ethereum3 weeks ago
Ethereum Closes In on Long-Sought Fix to Cut Energy Use Over 99%
Telecommunications4 weeks ago
Nigerians To Submit Phone IDs In Three Months says NCC
Cryptocurrency3 weeks ago
BankDhofar Launches Mobile Banking Payments from Oman to India with RippleNet
Social Media4 weeks ago
Facebook Africa Launches ‘Made by Africa, Loved by the World’ Ahead of Africa Day