As Bitcoin continues to surge downward, and the cryptocurrency revolution faces difficulties, today also brings news of a lawsuit against Bitmain, miners shutting down, Coinbase backing tokenized security company Securitize, and Ledger opening a New York office. Catch up on today’s headlines.
Bitmain Faces Lawsuit For Allegedly Cryptojacking Customers
Recent news sees Bitmain as the brunt of a lawsuit, to the tune of $5 million. Customers claim Bitmain mined crypto assets under cover, without informing them. In short, Bitmain is accused of mining for their own benefit, using customers in the process.
Crypto Insider reports one of the complaints to sate -“[u]ntil the complicated and time-consuming initialization procedures are completed, Bitmain’s ASIC [Application-Specific Integrated Circuit] devices are preconfigured to use its customers’ electricity to generate crypto currency for the benefit of Bitmain rather than its customers”.
Has The Crypto Revolution Hit A Wall?
Since late last year, and January of this year, sentiment has changed. At the top of the bear market, people had their eyes set on an alternate reality/possibility, where blockchain solutions, as well as cryptocurrency, prevailed.
However, Crypto Insider writes that this universe and mindset has waned. Crypto-centered universe creation has been in a race with traditional institutional crypto adoption. Although a crypto universe would be difficult without traditional financial incorporation.
Crypto Insider explains – “the corporate world is fully capable of advancing this technology without any collaboration from the crypto sphere, the latter without this change, will remain a sociopolitical niche addicted to self-righteousness and imbued with bitterness towards the outside world, resorted to an autarchy”.
600K Bitcoin Miners Shut Down In Last 2 Weeks, F2Pool Founder Estimates
The past couple weeks of this bear market have started taking a bigger toll on the market. CoinDesk reports of 600K – 800K Bitcoin miners closing up shop recently.
Mao Shixing, the creator of a mining pool company (F2pool), explained to CoinDesk that older mining rigs are currently struggling to see profitability, given all the factors.
Many mining operations currently on hold are likely older rigs. Shixing also explains several other reasons for miners leaving, including Chinese electrical expenses and crypto asset price declines, among other reasons.
Coinbase Back Security Token Startup’s $12.7 Million Funding Round
Coinbase makes headlines as security tokens continue to develop. Securitize is a tokenized security company using blockchain to develop digital traditional financial securities.
Securitize revealed it has accrued $13 million via its “Series A funding round” according to a recent CoinDesk report.
Ripple’s Xpring, OKEx’s OK Blockchain Capital, and Coinbase Ventures are all involved, among others.
Hardware Wallet Ledger Opens New York Office To Develop Institutional Custody Offering
One of the main crypto hardware wallet companies recently made headlines, jumping into New York involvement. Ledger recently stated its intentions of furthering operations into New York.
The Ledger Vault aims to aid in institutional crypto asset custody. CoinTelegraph reports on Pascal Gaunthier, Ledger’s CEO, saying – “New York City is the center of the financial world, hence having our Ledger Vault operations based in the region was a natural fit”.