Cred Files for Bankruptcy as Customers Demand Answers 0 208

Cred Files for Bankruptcy as Customers Demand Answers

Based in the United States, Cred is a crypto lending service that has recently filed for Chapter 11 bankruptcy. This has prompted many customers of the platform to look for ways to get back their funds. According to the court documents that were filed, the chief executive of Cred, Danial Schatt, asked his legal team to file the bankruptcy papers for the company on November 7th, 2020 and they were submitted to the District of Delaware. This bankruptcy filing took place after the platform made an announcement on October 28th, 2020. The announcement said that the company was suspending the inflows and outflows of funds for two weeks.

Cred adamantly posted on its Twitter account that the filing was regarding a kind of criminal investigation. Instead, they said that they were simply working with the authorities for assisting them in addressing some irregularities where specific corporate funds had been handled by a perpetrator. Thus, Cred claimed that this didn’t fall into the realms of a criminal activity and was only a ‘fraudulent incident’, which doesn’t have any criminal associations in the slightest. However, another factor that has raised some suspicion is how the crypto lending service lost its partnership with a crypto trading platform and wallet called Uphold. 

This occurred just before the announcement was made. Prior to the termination of the partnership, it was reported that Uphold clients were having trouble with the CredEarn program and had alleged that the problem had occurred due to Cred. After the partnership with Uphold was revoked, a user said that Bitcoin and other crypto-assets that were valued at almost $140,000 had been locked in his account with Cred. However, Cred continues to repeat that this was not a criminal incident and was in fact, a fraudulent incident. The company assured the public that none of its systems, customer information or customer accounts had been compromised in this ‘incident’. 

Even so, there has been no update by Cred on Twitter and neither have they sent any email to their clients, since October 30th, about the assets on its platform. One Twitter user said that their only concern was to find out if their funds were safe and they begged Cred to provide information about them in their next announcement. However, the platform has indeed updated its website because it shows the information about them filing for Chapter 11 bankruptcy. Even then, a lot of users did not get the message and they actually ended up transferring a significant amount of funds, just prior to when access was blocked.

This chaos caused by Cred is just another example of why the old saying ‘Not your keys, not your crypto’ has become popular. After all, any centralized exchange where you keep your crypto will have control over them. However, users of the crypto lending service are hoping that regulators will be able to keep their funds safe through oversight, if it happens. With any luck, this problem could end up being in favor of the investors.

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Bitcoin Will Drop Down to $20k a Piece, Says the Guggenheim CIO 0 7

It was just two weeks ago when Bitcoin (BTC) prices were hitting their all-time high of $41k per Bitcoin (BTC). Then suddenly the prices of Bitcoin (BTC) starting dropping significantly. In a matter of 48-hours, the price of Bitcoin (BTC) came down by $11k only to bounce back to $35k in the next couple of hours.

However, since the set-back, Bitcoin (BTC) has been having a hard time keeping up. Although there were many analysts who predicted Bitcoin’s price drop was due, yet they stated that it will grow in price again. Right after the plunge, Bitcoin (BTC) did manage to make a comeback but it was not a long-lived success.

In a matter of days, Bitcoin (BTC) again came all the way down to $33k per Bitcoin (BTC) and then again bounced back. Just a few days back Bitcoin (BTC) managed to go all the way up to $38k per Bitcoin (BTC). However, it is again sitting at $33k apiece, which goes onto show exactly how volatile Bitcoin (BTC) has become.

Bitcoin (BTC) has again become extremely volatile in the past two weeks. As it keeps showing the volatile nature, many investors have started growing uncertain about its stability. There are many investors who have already sold their Bitcoin (BTC) with fears of facing another plunge since 2017.

Based on the above case, one of the senior executives at Guggenheim Partners has made his prediction around Bitcoin (BTC) price. According to the executive, Bitcoin (BTC) is currently destined to go all the way down to $20k per BTC. No matter how many times it fluctuates and it manages to go up, Bitcoin (BTC) will eventually drop down to $20k per BTC.

According to the Guggenheim executive, Scott Minerd, Bitcoin (BTC) will not be able to hit an all-time high for the rest of the year 2021. Minerd shared his views around the price of Bitcoin (BTC) in an episode of the “Closing Bell” show airing on CNBC.

Minerd predicted that after hitting an all-time high of $41k per BTC, it is highly unlikely for Bitcoin (BTC) to again hit an all-time high in the running year.

Although Minerd has made this prediction around Bitcoin (BTC) price looking at the current situation, it does not mean that he has started criticizing Bitcoin (BTC).

According to him, Bitcoin (BTC) is still one of the most reliable investment assets and will continue to grow with respect to the adoption rate. Despite his recent comment about Bitcoin (BTC) taking a plunge down to $20k per Bitcoin (BTC), he still maintains his stance on another prediction.

Minerd has predicted that one day, Bitcoin (BTC) will manage to hit the $400k per BTC mark.

Dubai Regulatory Authority to Introduce Cryptocurrency Regulations 0 8

It was almost 11 years ago when the cryptocurrency industry was introduced to the entire world with the launch of Bitcoin (BTC). At that time, the industry was strongly opposed by the regulatory authorities as well as financial institutions.

The need for the cryptocurrency industry was felt when the traditional finance institutions had started taking too much control of people’s personal information. It was the financial institutions that had started dictating people and putting too much pressure on people.

That was the time when there was a need for an alternative to the traditional financial system to be established. A system that granted people the authority to control how much of the personal information they wanted to share with the providers. The cryptocurrency industry was developed on a decentralized platform that did not appreciate the interference of third parties. Whether it was a sale, purchase, or trade, there were no intermediaries involved on this platform.

However, the financial institutions as well as many countries started opposing the idea and were not ready to adopt the platform. As time went by, the cryptocurrency industry has grown enormous and has reached a cryptocurrency community of 200 million active users.

Just recently, the cryptocurrency industry hit a market capitalization of $1 trillion. This has brought the cryptocurrency industry into the spotlight and countries from around the world have started adopting the industry.

One of the recent countries that are looking forward to welcoming cryptocurrency on its soil is Dubai. According to the recent reports, the major regulatory authorities from Dubai are currently in the process of composing the regulatory guidelines in the country.

The Dubai regulatory agencies involved in the process include the Dubai International Financial Centre and the Financial Services Authority. These regulatory authorities are currently involved in enhancing the regulatory structure as well as the regulations in the country.

The Dubai Financial Services Authority has revealed that it is planning to ready and launch the regulatory framework for diverse digital assets for the years 2021 and 2022. The announcement was made by the DFSA on the working of the digital assets regulatory framework on January 18, 2021.

Once the new regulatory infrastructure is released and implemented, it will turn out to be very essential for the cryptocurrency industry in Dubai. It will allow the cryptocurrency firms in the country to provide their services on a larger scale. They will be able to offer investors more trading assets and will also be able to target businesses and enterprises in the country.

Most importantly, the firms will have full support from the Dubai regulatory authorities in the expansion of new services being introduced in the Bitcoin (BTC) verse.

The DFSA has announced that it will be publishing two consultation papers that will be public for commenting and feedback.

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