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Сo-founder of Union Square Ventures Active since 2011.

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Top venture capitalist Fred Wilson reveals why he's investing in media while others are fleeing: 'I like to zig when other people zag'

Fred Wilson is cofounder and partner at Union Square Ventures, a legendary startup investment firm. He was an early investor in platforms such as Twitter, Tumblr, Zynga, and Etsy. In a rare and wide-ranging interview with Business Insider, Wilson discussed his new investment in video media startup The Recount, and explained why it's a good time to invest in digital media even as the industry is imploding. When it comes to evaluating media companies, Wilson said he favors companies that aren't too dependent on a single distribution channel and whose content is designed to be read or viewed on phones. Visit Business Insider's homepage for more stories. Fred Wilson has a knack for nailing startup trends. The legendary venture capitalist was one of the first to jump on the rise of social media. The cofounder and partner at Union Square Ventures wrote early checks to companies like Tumblr, Twitter, Etsy, and Zynga. He also recently invested $5 million in The Recount, a company started by veteran media entrepreneurs John Heilemann and John Battelle. Wilson said that there are a lot of media companies that are doing text-based summaries of the news but that few are doing it well in mobile video. "There is a way to convey a lot of information in five minutes or less," he said. "Lots of people would prefer to get their news that way. The text-based news audience is really well served, if you look at what Axios is doing. But not as many are doing it for video." Wilson also said it's a good time to invest in media because sectors are attractive to him when others are fleeing them. "I like to zig when other people zag. I like to get to things before people get into them or when other people have gotten out of them. Those are generally the good time to invest in companies," he said. The Recount is not the only startup Wilson is bullish on. Read the full interview with him on other trends he sees and companies he's watching, on Business Insider Prime: Fred Wilson, one of the world's most successful venture capitalists, reveals the top trends in startups right now, and why he's investing in an industry that's imploding Also read why Wilson thinks the world needs another digital-media startup:  Star venture capitalist Fred Wilson explains why he invested $5 million in video media startup The Recount and how it could quickly become a profitable, $200 million business in seven yearsSEE ALSO: 2019 was one of the most tumultuous years in media history, when thousands of jobs were lost and subscription models grew like wildfire Join the conversation about this story » NOW WATCH: Behind the scenes with Shepard Smith — the Fox News star who just announced his resignation from the network
Business Insider

Legendary venture capitalist Fred Wilson is betting $5 million the world needs another video media startup. He explains how The Recount could quickly become a profitable, $200 million business

Successful venture capitalist Fred Wilson has invested $5 million in John Heilemann and John Battelle's media startup, The Recount, which sums up the day's politics news in short clips. He not only believes the world needs another video media startup like The Recount, but he sees it becoming a profitable, $200 million business over the next seven years.  Wilson was an early investor in Twitter, and he said companies like The Recount could correct some of the problems caused by the rise of social media platforms. He also outlined what he thinks VCs got wrong previously about media and why now might be a great time to invest in it, despite a slew of layoffs and consolidation in the industry. Click here for more BI Prime articles. Veteran media entrepreneurs John Heilemann and John Battelle have a new video startup, The Recount. The Recount resembles other video startups NowThis and Quibi, and aims to summarize the politics news of the day in short clips. The Recount has attracted $10 million in venture dollars from notable investors including Union Square Ventures' cofounder and partner Fred Wilson. Union Square Ventures was one of the first firms to bet heavily on social media startups and made successful early investments in companies like Twitter, Zynga, and Etsy.  Wilson explains in a rare interview why his firm put $5 million into The Recount and why he believes now is a good time to invest in media companies, even as many digital publishers have been imploding. The following interview has been lightly edited for clarity. Read the rest of the interview with Wilson here. Lucia Moses: What's the case for The Recount? Fred Wilson: The idea is basically, what does news look like when it's designed for a mobile phone and for social networks like Twitter and TikTok?  There are highlight reels for sports, but what might a highlight reel for news look like on a phone? The Recount is starting in politics because John Heilemann is a journalist in the political realm. Also, because as John Battelle and John Heilemann like to say, US presidential politics is the biggest story in the world in 2020. They have three or four ideas they're pitching to streaming platforms. The idea is to have a traditional 30- or 60-minute television show and reproduce smaller, quick shows you can deliver on a phone. Over time, we think recounting what happened on a given day or week with other vertical news slices ought to be interesting as well. Watching news on cable or broadcast television or reading the newspaper are yesterday's format. Watching news on television or reading the newspaper are yesterday's format. There is a way to convey a lot of information in five minutes or less. Lots of people would prefer to get their news that way. The text-based news audience is really well served, if you look at what Axios is doing. But not as many are doing it for video. LM: Quibi, Meg Whitman's and Jeffrey Katzenberg's video startup that raised $1 billion, has its detractors. How far does the comparison to Quibi go? FW: We haven't raised however many billions of dollars, but I think the Quibi bet actually makes sense. The scale I can't speak to but the basic idea that there's a market for high quality, well-produced, but much shorter length content is actually right. We put $5 million into this company, and it's focused on one vertical. Quibi's ambition is much larger to start. LM: When you announced the investment, you wrote that Twitter has caused some negative (and positive) disruptions in media. How can The Recount help? FW: A lot of what happens on Twitter today and on all of these social platforms is people pontificating. In broadcast news, we have higher journalistic integrity. Cable lines up along ideological lines. What I'd like to see is high-quality journalism created natively for the social platforms. There's a little bit of a vacuum right now. It's important we have real journalism, customized for these platforms. I think NowThis is the best example of somebody else doing this. The big media companies still produce content the way they always have, so we need something new. BI: How big can The Recount get? You hear companies like The Athletic talk about becoming a $1 billion media company, but there's some skepticism about how large most media companies can actually become. FW: The current newsroom is around a dozen to fifteen people. A 30-40 person newsroom ought to be enough to do what we want to do in politics. If we go into new verticals, we'd have to create additional teams to go after those. But I think of it as relatively modest and each could be a $50 million a year revenue business or more. So if you have three to four verticals, you could have a $150 to $200 million business over a five to seven year period. If you have four verticals, you could have a $200 million business over a five to seven year period...a nicely profitable news organization. The curation model is pretty cost effective on a dollar-per-minute basis. I think of it as a nicely profitable news organization. BI: How does a company like The Recount -- or not -- fit with the rest of your investing strategy, which has been largely focused on big networks of users, not small media companies? FW: It is absolutely not something we've done in the past, but as media has come out of favor in the venture business in the past couple of years, that has created a pretty big negativity around the sector, and I think it's a very contrarian thing to do. It's possible we'll get even more conviction and do more [media investing]. We're intrigued about what looks like a little bit of a vacuum now in media, so we're making a couple of bets, and if we feel good about those, it wouldn't surprise me if we continue to do that. I like to zig when other people zag. I like to get to things before people get into them or when other people have gotten out of them. Those are generally the good time to invest in companies. Investing in a scooter company last year was probably not a good idea because everyone wanted to have a scooter company in their portfolio. Venture is a follow-the-herd business. But [to us] they have to be doing something differently than what has come before. SEE ALSO: Industry insiders say buzzy millennial media company TheSkimm has been looking for an investor or buyer as user growth slows Join the conversation about this story » NOW WATCH: Here's how to escape a flooding vehicle
Business Insider

Fred Wilson, one of the world's most successful venture capitalists, reveals the top trends in startups right now, and why he's investing in an industry that's imploding

Fred Wilson is cofounder and partner at Union Square Ventures, a legendary startup investment firm. He was an early investor in platforms such as Twitter, Tumblr, Zynga, and Etsy. In a rare and wide-ranging interview with Business Insider, Wilson discussed his new investment in video media startup The Recount, as well as other opportunities he sees. Wilson also explained why he likes direct listings as an alternative to traditional IPOs, and what long-term effects companies like Uber and WeWork could have on the tech sector. Wilson argued that despite the debacles of some prominent Softbank portfolio companies, VCs won't suddenly start pushing startups toward profitability. Get more BI Prime articles, here. Fred Wilson has a knack for nailing startup trends. The legendary venture capitalist was one of the first to jump on the rise of social media, and he wrote early checks to companies like Tumblr, Twitter, Etsy, and Zynga. There are some trends Wilson is excited about now that seem contrarian (and in the venture world, being a contrarian is a point of pride). In a rare and wide-ranging interview with Business Insider, Wilson outlined a few of them: Wilson, who recently invested $5 million in John Heilemann and John Battelle's media startup, The Recount, thinks it's a good time to invest in media companies. Lots of media companies, meanwhile, are consolidating and downsizing. He thinks upstarts and digital companies will find success going back to more traditional models — Amazon launching physical stores, Netflix going into movie theaters, and digital media companies buying print arms. He doesn't think WeWork and Uber's highly-publicized problems will make investors any more likely to push startups in their portfolios toward profitability. There's still plenty of cash to go around for people with big (profitless) visions. He's a fan of direct listings — a newish alternative to a traditional IPO that other venture capitalists like Bill Gurley have been crowing about, too. The following interview with Wilson has been lightly edited for length and clarity. Lucia Moses: You just invested in video news startup The Recount. What do you look for generally in media companies as investments? Fred Wilson: We look for companies that are not too dependent on a single distribution model. We do believe — although we're not convinced — that short is good, and things should be designed to be consumed on phones. Audio would be interesting to look at on phones as Apple's airpods are becoming more powerful. We think about, what kinds of things will people want to do with airpods and their phones related to media, healthcare, education, etc? That is an important trend that's investable. LM: What did VCs get wrong about media? FW: You don't have to optimize to Facebook. That is one mistake the venture capitalists made. They also bulked up in their cost structures. It's not clear you can make media into a $500 million or $1 billion revenue business. So I think it's important to stay lean. Keep costs low. Create lots of content without creating a huge infrastructure. The Athletic is probably the exception that proves the rule. Sports is different. People are absolutely crazy about what happens with their hometown teams. But I'm not sure it's replicable to other verticals. LM: Venture capital has had a big role in creating media companies in the past several years, with mixed success. What went wrong and what role do you see VC in general playing in media?  FW: Venture comes and goes. There are times people are very conservative. Venture has had a love-hate relationship with media. There are a lot of great examples that have sold. They've struggled in recent years. It doesn't mean they'll be out of business in a year. People got too excited about the potential and valued them at prices that didn't make sense at the time. The other thing is digital media companies buying print, like Vox Media buying New York magazine. I think that's very intriguing. The other thing that's interesting is Netflix getting into the box office theater business. It doesn't seem crazy. Amazon opening stores. That feels like a real trend.  LM: What else in media excites you? FW: I think audio is going to become an increasingly big deal. What The New York Times has done with The Daily is really incredible. For a lot of people, that's the only New York Times content they consume. They're building a very loyal audience. It makes sense that it would lead to big media companies investing even more in audio.  LM: What's your view on the streaming wars? FW: I think some of these new entrants are going to be successful, but I don't think it's going to come at the expense of early pioneers like Netflix. The market is a lot bigger than anybody thinks and there will be a dozen big streaming businesses. People are getting rid of their cable and buying internet services. It opens up spending power that'll get invested in entertainment. LM: The idea of direct listings has gotten a lot of chatter, with Slack going public this way. What do you think of them as an alternative to IPOs?  FW: The stock exchange was going to allow direct listings that included a capital raise. Until now, the only way to do it was list the shares, so the only companies that could do it were companies that don't need the money. The thing that's great about direct listings is usually there's a lot of price discovery, where companies like Slack let their shares get pretty liquid in the private markets so people have a good idea of what price they have to list at. That's better than a public offering, where there's all this drama. I do like direct listings, and it's a sign of innovations happening in the public capital market. LM: How about some of the recent troubled startups like Uber and WeWork? Do their struggles change how you think about investments? FW: If you look at the companies that were performing well, they tended to be software companies. The companies that weren't performing well really weren't software companies. Uber is a software company, but so much of what happens when you take a ride isn't software. Peloton is a software company but also an exercise company. We didn't invest in Uber or WeWork. One could argue those were mistakes. We have been more comfortable with companies that are mostly software companies. Maybe it was validation that our preference for software companies was good over the years.  LM: Yet some companies convinced everyone they were software companies when they clearly weren't. FW: The idea of technology as a disrupter is a very compelling narrative. Maybe that's all you need to think about to understand why so many people get excited about these companies. LM: Do you see there being more pressure by VCs for startups to get profitable faster after disasters like WeWork? FW: I don't think there's going to be a material change in incentives to get to profitability quicker. There's still a tremendous amount of capital to fund losses. And entrepreneurs with big visions who need investment to fund them are still going to find it.SEE ALSO: Joe Marchese has been saying for years that advertising is broken. Now he's creating a new holding company, Attention Capital, to fix it. Join the conversation about this story » NOW WATCH: People are still debating the pink or grey sneaker, 2 years after it went viral. Here's the real color explained.
Business Insider

Fred Wilson: ETH Is Seriously Underperforming

Co-founder and managing partner at Union Square Ventures Fred Wilson has always been a big fan of Ethereum, but lately, he can’t help but feel a little underwhelmed and disappointed by its performance.  Wilson: ETH Isn’t Doing So Hot In a recent post, Wilson spoke negatively regarding the currency he once predicted would surpass bitcoin’s overall value by the end of 2017. Not only did this not happen, but bitcoin has been growing exponentially since April of this year, whereas Ethereum has fallen by roughly 23 percent over the past four months. There’s no comparison regarding how the two largest cryptocurrencies by market cap are doing; BTC is rock solid, and ETH is… Not. He comments:  Ethereum, as many of you know, confounds me. It has shown the way to so many important things; smart contracts, programmable trust-free computing, potentially proof of stake, and a lot more, but it remains hard to build on, scaling issues abound, and many developers are looking elsewhere. What Wilson states isn’t necessarily newsworthy, at this stage. Just last week, co-founder of Ethereum Vitalik Buterin emerged to state that Ethereum was no longer scalable thanks to the several blockchains and applications that were now crowding its initial network. Ethereum was among the most popular blockchain networks given its smart contracts capabilities. This made every new coin company want to build their tokens upon the ETH system, and while many saw their dreams become realities, Ethereum is plagued with high gas fees, slow transactions and other problems given the amount of congestion it’s currently dealing with. In the long run, Wilson is confident that there’s a lot to be had via the crypto market, though he can’t help but feel a bit down about some of the major problems he’s seeing, number one being the lack of mainstream adoption of “crypto as a payment method.” He’s also disappointed by how few projects are making the rounds.  The Risks Are Numerous He states:  There is plenty of disappointment to be had in crypto right now. I am an optimist. I am convinced that many of these disappointments will be overcome in the next few years, but it is easy to be bearish on crypto right now. I am long crypto and USV is long crypto, and we are putting more capital into the sector and will continue to do so, but it is not without risks and setbacks. It is full of them. No doubt there’s truth to what Wilson is saying, but it’s also plausible to take some of his verbiage with a grain of salt. Bitcoin, for example, has shot up beyond $10,800 at press time, meaning it has broken previous resistance and could continue to expand from here. Ethereum may be down for the count, but the crypto granddaddy is still going strong. The post Fred Wilson: ETH Is Seriously Underperforming appeared first on Live Bitcoin News.
Live Bitcoin News

Venture Capitalist Fred Wilson Lambasts Ethereum While Showering Bitcoin With Praises, Says BTC Is ‘Our Digital Gold’

Ethereum’s price performance and scalability have been lackluster for quite some time now. It is no wonder, then, that the somewhat flawed design has been more often the target of criticism by many experts in the industry now. In a blog post dubbed “Some Thoughts On Crypto” and published on September 4, Venture Capitalist Fred Wilson, who is also the co-founder and managing partner at Union Square Ventures, expressed disapproval for Vitalik’s project. He, however, had some nice words to say about the king crypto. It pays to remember that Wilson was an ardent supporter of the Ethereum blockchain just two years ago, hence why this change of heart is unsettling for Ethereum bulls, though comes as no surprise. A Love Story Turned Sour? Back in 2017, Wilson predicted that Ethereum would outshine bitcoin by market cap. Clearly this has not materialized yet; Ethereum is still playing catch-up with bitcoin. In fact, Ethereum is up by only 31% from the start of 2019 while bitcoin has gained over 180% over the same period.  In 2018, his love for Ethereum began fading away. He raised eyebrows about Ethereum’s management during Fall 2018 Multicoin Summit in a video posted on Twitter by Tuur Demeester saying Ethereum was not backed by a strong team of developers and did not have enough funds for projects. In his recent post, he notes that Ethereum “confounds” him: “Ethereum, as many of you know, confounds me. It has shown the way to so many important things; smart contracts, programmable trust-free computing, potentially proof of stake, and a lot more. But it remains hard to build on, scaling issues abound and many developers are looking elsewhere.” Last month, Vitalik Buterin admitted that his brainchild, Ethereum, is facing scaling issues citing that the blockchain is almost full. This is one of the reasons Wilson jumped ship, certainly not unfounded. An Existential Crisis At Scale Despite its success in offering smart contracts and being the largest altcoin by market capitalization, Ethereum is plagued by, to some extent, an existential crisis. Even though it has stamped its own mark on the crypto industry, its goal of solving its scalability problem remains a distant dream, curtailed by its own design and growing demand. Unfortunately, Wilson is not the only investor casting doubt on Ethereum blockchain. As ZyCrypto reported, Blockstream CSO Samson Mow recently referred to Ethereum as a “technological dead end” due to its “almost full” status that has come about because of Tether stablecoin. More Disappointment In his post, Wilson notes that he’s not only disappointed with Ethereum, but also with the hard-line taken by banks and regulators worldwide which has subsequently led to the domination of the cryptocurrency industry by Asia. The venture capitalist then goes ahead to express his displeasure about crypto not being mainstream yet:  “Very few people earn in crypto. Very few spend in crypto. Very few use Dapps. Very few do anything with crypto other than buy, sell, and mostly hold.” Nonetheless, Wilson concludes his piece saying that he’s positive the crypto industry will repress these disappointments in a few years to come. Long Live The Crypto King! While Mr. Wilson remains pessimistic about Ethereum, he expresses extreme admiration for the king cryptocurrency, even touting the coin as “digital gold”. He affirmed: “But Bitcoin now makes up almost 70% of that aggregate market cap. In some ways, Bitcoin is the one protocol that has found lasting product-market fit. In terms of a censorship proof digital store of wealth, there is nothing that comes close to Bitcoin. There are some protocols, like the privacy-focused ones, that offer similar and in some cases better use cases. But for the most part, bitcoin is our digital gold.” The post Venture Capitalist Fred Wilson Lambasts Ethereum While Showering Bitcoin With Praises, Says BTC Is ‘Our Digital Gold’ appeared first on ZyCrypto.
ZyCrypto

Fred Wilson Disses Ethereum, Brownnoses Libra and BitcoinFred Wilson Disses Ethereum, Brownnoses Libra and Bitcoin – CCN Markets

Venture capitalist Fred Wilson is backpedaling after one of his many lame predictions blew up in his face. Again. This time, Wilson dissed Ethereum while praising bitcoin and brown-nosing Facebook's beleaguered Libra "cryptocurrency." The Union Square Ventures co-founder distanced himself from Ethereum, saying it disappoints him. “Ethereum, as many of you know, confounds me,” Wilson […] The post Fred Wilson Disses Ethereum, Brownnoses Libra and Bitcoin appeared first on CCN Markets Venture capitalist Fred Wilson dissed Ethereum while praising bitcoin and brown-nosing Facebook's beleaguered Libra "cryptocurrency."
CCN

Union Square Ventures’ Fred Wilson: Strict SEC Regulations Could Push Crypto Innovation to Asia

One of the top global cryptocurrency exchanges, Poloniex, recently announced the geofencing of nine (9), digital assets. According to Poloniex, this development was due to the uncertainty of cryptocurrency regulations in the US, potential retribution of the SEC (Securities and Exchange Commission) to be precise. Union Square Ventures Co founder, Fred Wilson, recently spoke on […]
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SEC’s harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson

Circle-acquired Poloniex, one of the leading cryptocurrency exchanges in the world, announced the geofencing of nine assets on its platform recently. The reason revealed by them was the uncertain regulatory climate in the US, leading them to take a cautionary step fearing the Securities and Exchange Commission’s [SEC] retribution. Fred Wilson, the co-founder of Union Square Ventures, had recently voiced his opinion that the regulatory body’s ruling to delist coins in the US crypto exchanges was very damaging. He believed that hostile policies would eventually drive away innovation from Silicon Valley, which is the “global epicenter of tech” to Asian countries. He tweeted, “In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause” Citing Coinbase as an example, Wilson stated that the “most trusted/compliant/secure/safe” exchanges were based in the US. So, according to him, driving trading or liquidity to Asia is “detrimental to safety and security”. Preston Byrne attorney at Byrne & Storm, PC responded to the above tweet stating that “alleged misconduct” in Asia would be harmful to the entire crypto-space. He emphasized that the major threat to Bitcoin adoption was the “bad actors” who need to be identified and eliminated. Calling for the need to monitor trading regions and markets, Byrne posted, “95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.” Ari David Paul, the founder of BlockTower Capital, also reacted to the post, “Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.” Responding to the above tweet, Byrne said that $3 billion of Tether [USDT] was what kept Binance and Finex “afloat” and contributed significant volumes and were currently under the heavy check by State of New York. He also added that the aforementioned platforms were a “hair’s breadth away” from an investigation regarding fraud. The post SEC’s harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson appeared first on AMBCrypto.
AMBCrypto

Fred Wilson Says Cryptocurrencies Could Unseat Tech Monopolies

Elizabeth Warren, which is going to take on Trump in the upcoming presidential election, announced its plans to break up tech monopolies by designating them as public utilities. If there are fewer competitors in the market, large technology companies could compete in a less aggressive way. She explained that her administration will be restoring competition […]
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How a misleading tweet drove Binance-listed Matic token tank by ~70%

Matic, a native token of blockchain scalability project Matic Network, plunged by around 70% within half an hour last night. Triggered by a misleading tweet from Samuel Gosling, founder of cryptocurrency evaluation platform Validity Crypto, Matic token dropped from $0.042 to $0.013 in under 35 minutes on Monday. Gosling tweeted that the Matic Network Foundation transferred around 1.50 billion Matic tokens (15% of the supply, worth about $67 million) in the past 50 days, adding that some of which seem to have been sent for liquidation at Binance. About two hours later, Gosling tweeted that he miscalculated the figures. “I just want to deeply apologize for providing an inaccurate claim, it turns out it was only 381,903,830 $MATIC (3% of the supply) that 'seems' has been liquidated.” Matic Network, in its blog post published Tuesday, said that Gosling’s first tweet “created the FUD” (fear, uncertainty, and doubt) among crypto Twitter and led to the price plunge. “We want to strongly state that the allegations of token movement from our Foundation account, made by a FUD account against Matic team are completely baseless,” it added. Binance CEO Changpeng “CZ” Zhao also tweeted earlier today that the exchange is investigating the matter but it is “already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle.” Matic Network held its token sale via Binance Launchpad earlier this year and raised around $5 million. "Matic has been relatively illiquid, and Binance also allows users to margin trade the token. Both of these factors likely contributed to the sharp fall," said Larry Cermak, research director at The Block. 
The Block Crypto

Crypto Exchange LedgerX Sends Its Co-Founders on Leave

Twitter rage expressed by CEO Paul Chou isn’t sitting well with the board of LedgerX. The cryptocurrency exchange’s board of directors send co-founder Juthica and Paul Chou on administrative leave. A new interim CEO The Chous’ leave became effective “immediately” and hired Larry E. Thompson as the interim CEO. The board did not reveal the reasons why the founders were removed from the company’s everyday operations. However, the news is being linked with the company’s tussle with the CFTC. In August this year, Paul Chou spoke about the Commodity Futures Trading Commission (CFTC) in great detail, narrating how the regulator had broken the law. In an expletive-filled rant, he talked about bias at the regulator’s end. During the same month, the company had prematurely announced the availability of cryptocurrency futures to US-based retail investors. It was competing with ICE-backed Company Bakkt to launch regulated futures in the US. The new CEO Thompson isn’t a Twitter-ranting founder, but an experienced Wall Street executive with over 30 years of an illustrious career under his belt. He was working at the vice-chairman of the Depository Trust & Clearing Corp. before joining Ledger. He will also work as the lead director of Ledger Holdings. LedgerX’s regulatory problems LedgerX is a US-based company providing clearinghouse and Bitcoin derivatives services. It provides a swap execution facility for institutional cryptocurrency traders who have at least $10 million in assets. Paul Chou and the company have not commented on the move yet. However, CoinDesk reported that they had talked to Juthica Chou on email. She noted that the “board composition is tricky” and no one knows about derivatives, Bitcoin and computer science. She added that disagreements and conflicts with the board become difficult because of their lack of expertise in the field. However, she wished the new management well on her and Paul’s behalf. Some documents received by the publication reveal that the company’s leadership didn’t believe in fair practices at the regulator. They thought that Christopher Giancarlo, the former chairman of CFTC held “personal animus” towards the company because of Paul Chou’s comments. The post Crypto Exchange LedgerX Sends Its Co-Founders on Leave appeared first on Cryptovibes.com - Daily Cryptocurrency and FX News.
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Binance Defends Matic After Altcoin Dives 60% Due to ‘Panic’ by Whales

Binance Defends Matic After Altcoin Dives 60% Due to ‘Panic’ by Whales Ethereum (ETH) based cryptocurrency payment network Matic has described as “baseless” claims it manipulated the price of its token after it crashed 60% in minutes. In a blog post on Dec. 10, executives addressed community participants who saw the value of the project’s […] Cet article Binance Defends Matic After Altcoin Dives 60% Due to ‘Panic’ by Whales est apparu en premier sur Bitcoin Central.
Bitcoin Central

Matic Network (MATIC) Team Explains Sudden Token Flash Crash

The Matic Network (MATIC) token went through a crisis, erasing more than 50% of its price in the past day, to drop to $0.02. The price crash, however, follows a period of wild appreciation on a parabolic trend, as MATIC more than tripled its price and moved to a record above $0.04. Fears of Team Dumping Tokens Now, the price action of MATIC is starting to suggest a pump-and-dump event. However, the team has moved in to explain what’s going on with the volatility. The crash in price seems to be a direct effect of messages circulating which suggest that the team was performing suspicious token movements. Rumors spread about the MATIC team moving tokens from its Foundation account, sparking fears the team may dump the assets at the recently peaking prices. The team had already announced a small release of funds, of around 248 million MATIC, or 2.5% of the supply. But the unlocked tokens were meant to be used for staking and securing the network, as the team explained in a detailed blog. The 248 million tokens were also meant for investors and advisors, on which the decision to sell was not guaranteed. Matic had NO role to play in all this. For token movement, We announced the release of ~0.25% (248mn) tokens as Oct unlock, which coincides with aggregated outward movement. Foundation tokens are still there.https://t.co/BhDDqFWF6H MATIC will bounce back stronger than ever! — Matic (@maticnetwork) December 10, 2019 The tweet that sparked the panic claimed that the large amount of the project’s tokens were intended for dumping on Binance. Just did some snooping around to find that the #Matic Network Foundation has transferred 1,495,322,715 $MATIC (15% of the supply, approximately $67,314,942 at ATH) in the past 50 days, of which from seems to have been sent for liquidation at #Binance. https://t.co/FLPl4HyfiO pic.twitter.com/dpYG8rMoHX — Samuel JJ Gosling (@xGozzy) December 10, 2019 But the claims were refuted by the fast investigation performed at the Binance exchange. Binance’s CEO, Changpeng Zhao, commented that the real reason may be anonymous traders panicking. Our team is still investigating the data, but it's already clear that the MATIC team has nothing to do with it. A number of big traders panicked, causing a cycle. Going to be a tough call on how much an exchange should interfere with people's trading. https://t.co/wOVF6tEBkQ — CZ Binance (@cz_binance) December 10, 2019 MATIC Followed Natural Trading Patterns Binance has seen its share of boom-and-bust cycles for several coins, as well as trading anomalies. But MATIC is a special case, as it is one of the high-profile IEO tokens offered on the exchange. The token was also among the best performers, appreciating to above its token sale price. Zhao dismissed the latest sell-off as originating from FUD, but also raised the question on whether exchanges should interfere with trading. MATIC is represented on both Binance DEX and Binance, with the bulk of volumes on the centralized exchange. However, MATIC has recovered some of the losses, as the deepest end of the drop at one point wiped out 72% from peak prices. MATIC is still above the flat prices in the past few months. The fears that the Matic project was performing an exit scam were dismissed, but the token performance sparked the rage of traders. But for others, the MATIC performance was normal for inherently volatile altcoins and tokens, which offer a mix of rapid appreciation and risk. What do you think about the MATIC pump and crash? Share your thoughts in the comments section below! Images via Shutterstock, Twitter @cz_binance @Maticnetwork @xGozzy The post Matic Network (MATIC) Team Explains Sudden Token Flash Crash appeared first on Bitcoinist.com.
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