Regulators across multiple US states have announced enforcement actions against crypto lender Nexo, with cease-and-desist orders from some over Nexo’s interest-bearing crypto product.
On Monday afternoon, at least eight states had variously filed actions against the leading crypto lender. A CNBC report noted that New York, California, Oklahoma, Maryland, Kentucky, South Carolina, Vermont and Washington had all brought actions.
New York Attorney General Letitia James sued the crypto company for failing to register and for lying to investors.
I’m suing crypto platform @Nexo for illegally failing to register with my office and lying about it to investors.
Instead of misleading New Yorkers about its compliance with the law, crypto platforms must register to operate just like other investment platforms.
“Between at least June 2020 to the present, the Defendants, operating through their publicly accessible website and mobile smartphone app, which allow users to purchase, sell, deposit, trade, borrow against, and earn interest on virtual currency, violated New York’s Martin Act and Executive Law by acting as unregistered securities brokers or dealers and/or commodities broker-dealers,” the New York Attorney General’s complaint reads.
The other state regulators are also accusing Nexo of offering its yield account to customers within their jurisdictions without the requisite registrations needed for securities. The crypto platform’s failure to provide disclosures is an accusation across the enforcement actions.
In its press release, California’s Department of Financial Protection & Innovation (DFPI) said:
“The California Department of Financial Protection and Innovation (DFPI) announced today it has joined seven state securities regulators to bring actions against the Nexo Group (Nexo) in connection with its Earn Interest Product accounts.”
The cryptocurrency has started another week with low volumes. Bitcoin is still stuck around the $19k, and most altcoins are yet to make any moves. The good news is that with such low volumes, a small spike in buying volumes could see most cryptos turn green in the short term.
With this in mind, it makes sense to start scouting for altcoins with the potential for a price spike. Below are some of the cryptocurrencies that could do well before September ends.
Cosmos (ATOM)
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Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.
Cosmos (ATOM) has been holding up for the better part of September, even as the rest of the market turned heavily bearish. If it keeps making gains while the rest of the market stagnates, investors could FOMO in and drive ATOM to new heights in the short term.
Besides ATOM’s price action indicating a potential rally, there is much to look forward to for ATOM in the coming days. For instance, Cosmos is in the process of launching Interchain Security (ICS), and it’s a big deal.
That’s because it allows Cosmos validators to secure and generate blocks for other chains. This will give even more value to the Cosmos token and further add to the intrinsic value of the Cosmos ecosystem. This factor could see ATOM easily emerge as top-performing crypto in the coming days and potentially make its debut in the top 10.
Polkadot (DOT)
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Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.
Polkadot (DOT) is one of the top cryptocurrencies with big news, and it’s responding pretty well. The big news around Polkadot is that Tether is launching on Polkadot. While the price is yet to make any significant moves, DOT seems to be forming a potential breakout pattern on the weekly charts. If the broader market gains upside momentum, especially with Bitcoin breaking through $20k, then Polkadot could easily start October 2022 in double or even triple-digit gains.
Compound (COMP)
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eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.
Compound (COMP) has been gaining upside momentum for the past week. While there is no major news around Compound (COMP), the increasing price momentum will likely draw in speculators scrambling for any gains in a highly depressed market.
Such FOMO buying could be reinforced by the fact that Compound is not just a random altcoin. It is one of the older and better-known DeFi cryptocurrencies in the market today. This makes it a pretty logical bet for anyone that believes the future of cryptocurrencies is in DeFi. Compound’s low supply further adds to its potential to rally, especially if it gets enough momentum from speculative investors.
Terra Classic (LUNC)
As LUNC is such a new asset, it’s yet to be listed on major exchanges. You can still purchase LUNC using a DEX (decentralised exchange) though, which just means there are a few extra steps. To buy LUNC right now, follow these steps:
1. Buy ETH on a regulated exchange or broker, like eToro ›
We suggest eToro because it’s one of the world’s leading multi-asset trading platforms, an exchange and wallet all-in-one with some of the lowest fees in the industry. It’s also beginner-friendly, and has more payment methods available to users than any other available service.
2. Send your ETH to a compatible wallet like Trust Wallet or MetaMask
You’ll need to create your wallet, grab your address, and send your coins there.
3. Connect your wallet to the 1Inch DEX
Head to 1Inch, and ‚connect‘ your wallet to it.
4. You can now swap your ETH for LUNC
Now that you’re connected, you’ll be able to swap for 100s of coins including LUNC.
Terra Classic (LUNC) has recently dropped hard after Interpol raised a red alert on founder Do Kwon. However, Terra Classic seems to have overcome this shock and is up in double digits. If this reinspires momentum around Terra Classic, it could easily end the week among the best-performing cryptocurrencies and one with good prospects throughout October.
Terra Luna Classic (LUNC), the original version of the collapsed cryptocurrency Terra Luna, is smashing upwards on Monday afternoon, with massive gains sending the coin to highs seen early last week.
The LUNC/USD pair was trading around $0.00029885 at the time of writing, with intraday highs of $0.00031905 across major exchanges that list the coin.
According to CoinGecko data, the cryptocurrency has surged by more than 40% in the past 24 hours – most of the gains coming after what is good news in the form of Binance support for the cryptocurrency’s burn mechanism.
Binance implements LUNC burn
On Monday, Binance CEO Changpeng Zhao announced that the crypto exchange, the world’s largest by trading volume, would implement a 1.2% tax rate burn as the Terra Luna Classic community looks to reduce the coin’s supply.
“Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. The specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week in this announcement until further notice,” the exchange informed its customers.
Zhao also commented on the LUNC tax burn, noting the platform is implementing the model as LUNC holders would not have supported an earlier announced opt-in proposal. He tweeted:
Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.
Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
As for what happens to the fees, Binance noted: “Trading fees on LUNC spot and margin trading pairs that collected in a token other than LUNC (e.g., USDT, BUSD and BNB) will be converted to LUNC with the real-time exchange rates on Binance every Monday at 00:00:00 (UTC).”
In the past 24 hours, Terra Luna Classic has registered a daily trading volume of just over $2.4 billion, with CoinGecko data showing a circulating supply of 6,901,298,301,199 LUNC.
The token has been getting boosts from the expected ATOM 2.0
ATOM formed a double top and is correcting but maintains an uptrend
Cosmos ATOM/USD trades 2.93% lower in the last 7 days as of press time. A bearish MACD crossover confirms a bearish market. The token has, however, recovered 4.83% in 24 hours. Should this send shivers that ATOM is now bearish?
ATOM seemed to lose a bullish surge after getting rejected at $16 twice. That resulted in the formation of a double top. Nonetheless, it should be remembered that the token has been bullish since a low of below $6 in mid-June. The cryptocurrency trades at more than double price at $14.4 from the bottom price.
ATOM’s strengths emanate from the Cosmoverse conference, which starts on September 26 to 28. This is when fans will have a chance to get the details of the much-speculated ATOM 2.0. In the past, ATOM has been criticized due to its inflationary features. ATOM’s inflation depends on the token’s staking percentages. ATOM 2.0 is expected to address the inflation through a hard cap on the supply or burning mechanism.
ATOM corrects to the $13 minor support
eToro
eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.
On the technical front, ATOM is trading slightly above minor support of $14. The latest correction pushed the token below the 20-day MA. However, the token keeps the 50-day MA intact, coinciding with an ascending trendline.
The MACD indicator shows a bearish crossover in line with ATOM correction. At the current level, the upside looks subdued by a weak momentum. However, the bulls are defending the $13 level.
Concluding thoughts
The Cosmoverse event will be highly watched as it could determine whether ATOM will remain bullish. Still, at the current level, we cannot consider ATOM’s bull run over since it remains above the ascending trendline. If bears manage to take the token below $13, the next level will be $12.
Automata Network, a decentralised middleware service protocol in the Polkadot ecosystem, has introduced a free to use private Remote Procedure Call (RPC) relay designed to align privacy protection for Web3.
The platform’s 1RPC announced today is a free-to-use private RPC relay Automata Network says will help protect end-users from potential threats amid Web3 growth.
3/ Careless exposure of metadata means your IP address, device information, and diff wallets associated with the same account can be deduced 😩
These can give away your off-chain identity 👉🏻 and makes it easier for you to be a target of phishing scams/social engineering attacks
— Automata Network | We’re hiring! (@AutomataNetwork) September 26, 2022
1RPC and Web3 privacy protection
That Remote Procedure Calls (RPCs) are critical in the blockchain space is no doubt.
Decentralised applications (dApps) communicate with the blockchain via RPC nodes, with users then able to access and interact across the network for actions such as viewing balances or creating a transaction. But the requests getting shared via the RPC provider can leave a user’s metadata exposed.
The threats to user data are possible across any of the interactions within the space, including bidding for NFTs. Automata Network’s 1RPC could prove critical in embedding crucial privacy for users.
Mainly, 1RPC offers a shielded technical design for protections like ‘do not track’ and ‘anti-phishing’ – key benefits for users in terms of safeguarding personal data and self-sovereignty.
“The radical thing about Web3 is that you can build a better alternative to the status quo any time. It’s why we launched 1RPC as a free relay to bring more users into the privacy-conscious culture we want to foster for the industry…,” said Deli Gong, co-founder at Automata Network.
1RPC will offer one-click privacy protection, with support across numerous leading blockchain platforms.
As per Automata Network, the technology is supported on AltLayer, Arbitrum, Avalanche, BNB Chain, Gear, Kusama, Polkadot, and Polygon among others.
Source – TradingView