Meta 1 Coin Scam Backed by Ex-Senator Lives On Despite SEC's Crackdown

News
Wed, 05/27/2020 - 18:28
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Alex Dovbnya
No, Meta 1 Coin doesn’t want to make your life ‘easy and comfortable’ as it claims in its Instagram posts
Meta 1 Coin Scam Backed by Ex-Senator Lives On Despite SEC's Crackdown
Cover image via U.Today
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In its new piece, American news and opinion website DailyBeast reveals that an Instagram account linked the infamous Meta 1 Coin cryptocurrency scam, which was backed by former U.S. Senator David Schmidt, is still active despite being banned from doing so.

Metacoin
image by instagram.com

Back in March, the Securities and Exchange Commission (SEC) charged Schmidt and two other individuals involved in the sham with defrauding investors out of millions with fake cryptocurrency.  

From art to gold 

In 2018, Meta 1 Coin cajoled investors into participating in its initial coin offering (ICO) by promising enormous returns (up to 225,000 percent).  

In order to assuage those who were concerned about the coin’s intrinsic value, the fraudsters claimed that it was backed by a $1 bln art collection. As one might have guessed, Robert Dunlap, the ‘architect’ behind the scam, never bought any pieces. Meta 1 Coin got sued and paid $25 mln to the ‘Art Collector’ whose works they attempted to appropriate.        

After the artsy failure, Meta 1 Coin started claiming that its tokens were pegged to ‘vaults of gold’ that also never existed.

It also didn’t help that one of the project’s operators bought a Ferrari with his swindled money. 

Not leaving Instagram 

None of the 150 ICO participants got their tokens, and Meta 1 Coin inevitably appeared in the SEC’s crosshairs since most of them were from the U.S. 

As mentioned above, the U.S. regulator halted the ongoing scam back in March while freezing its assets and charging its managers with fraud.

Last week, U.S. District Judge Robert Pitman issued arrest warrants for Schmidt and other bad actors behind the fraud after they failed to appear in court. He also prohibited Meta 1 Coin from posting any content on social media.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

News
Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
Cover image via stock.adobe.com
Contents

While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)