Ebay: Sale of crypto currencies without a license?

The online platform Ebay apparently offers unlicensed crypto currencies for sale, including unambiguous scams and coins whose offer prices are out of proportion to the current market rate. Those responsible seem to be aware of this problem and have taken steps, but it remains to be seen how effective they are.

Ebay, the world’s largest online marketplace, seems to have a massive problem with regulating the products offered on its platform. For example, crypto currencies are set as goods and offered for sale completely unchecked. This is done in various ways, for example by offering paper wallets or vouchers that can subsequently be exchanged for crypto currencies. In total, several such offers are made daily which clearly promise the purchase of crypto currencies via the Ebay platform.

This Bitcoin code is not only cumbersome and confusing, but could also prove problematic

In Germany, it is not permitted to conduct commercial financial services business without being in possession of a corresponding licence. A corresponding licence is issued by the Federal Financial Supervisory Authority (BaFin) and can cost a six-figure euro amount, depending on the scope of the financial services to be offered. If this license is missing, it is not permitted to sell financial products commercially. This constitutes a criminal offence under Section 54 of the German Banking Act (KWG): https://www.geldplus.net/en/bitcoin-code-review/

Apart from the fact that the pure offering and selling of Bitcoin code crypto currencies is not permitted without a corresponding license, the offered products generally lack any substance. For example, various crypto currencies are offered at a price that far exceeds the current market value of the coin, as can be seen in the image section. The Ebays format also does not allow to take into account the hourly fluctuating price adjustments of the respective crypto currencies. In addition, it also happens that quite obvious scams and non-existent crypto currencies are offered for sale in order to take advantage of the ignorance of potential crypto users in a clearly fraudulent intention.

Finally, the question of Ebay’s role in this Bitcoin code story inevitably arises

Since these illegal and morally highly questionable offers are still left undisturbed, this suggests that the platform is at least finding it difficult to regulate the abuse of its own online marketplace for illegal Bitcoin code purposes. Important basic principles such as the know-your-customer approach (KYC) are violated in this way. It is also possible that the platform may be misused for Bitcoin code money laundering purposes.

Ebay provided evasive answers to the repeated questions of blockchain developer and BTC-ECHO reader Michael Padilla. It could be heard, for example, that the employees would not be able to check everything, that necessary filters had already been installed or that crypto currencies are currently simply very popular. However, Ebay does not seem to have found an effective antidote against the illegal trading of crypto currencies via its platform.

Get to work – especially as the Bitcoin price rises!

The recent dramatic rise in the share price has raised hopes for a future bull market. But is the price really the only interesting thing about crypto currencies?

The recent jump in Bitcoin’s share price gives rise to renewed hope for a stronger Bitcoin share price. Understandably: the sour cucumber period since the beginning of May, in which the Bitcoin share price only oscillated between downward and sideways movements, was interrupted. That’s fantastic, but it doesn’t hide the fact that we’re not over the mountain yet. In the weekly chart, the Bitcoin price is still below the moving average of the last twenty weeks, which is a reasonable estimate of the bull and bear market. Likewise, Bitcoin’s trading volume is still as low as it has not been for a year:

Between the beginning of May and the end of June, the Bitcoin price lost over forty percent. To make up for this, it needs more than a pump induced by BlackRock, the possibly coming ETF or other reasons. Even though over 20 percent in two days is incredibly impressive, the price would still have to rise thirty percent even now.

What can we learn from the Bitcoin profit review?

I don’t want to complain. It’s more about the Bitcoin profit review: How can this upward trend be used meaningfully? A look back at the past will help here. 2018 was by no means the first bear market. In 2011 and 2014 there have been equally drastic moments for the community. Even then, many lost a lot of money. Especially in 2014 a long bear market began. It took several years for the Bitcoin profit review market to recover. Crypto currencies that were in the top 10 in 2014 are now unknown. Megacoin, once ranked tenth in terms of market capitalisation, is currently ranked 925th.

But the scene didn’t sleep or just complain about losses – Bitcoin was still used. Bitcoinstad Arnhem, founded in May 2014 during the “Bear Market”, continues to exist and is a showcase of Bitcoin’s use. Ethereum, whose white paper was published at the end of 2013, was also launched in the bear market, more precisely in July 2015. Joseph Poon published the White Paper on the Lightning Network at the beginning of 2016.

Of course, trading was also done at that time, but by no means exclusively. The bear market and also the slowly recovering market was therefore a fruitful time. The focus was on technical use cases and real use.

How can a secure connection to a real asset be realized in the sense of a Bitcoin profit scam?

Layer 2 solutions, stablecoins and decentralized stock exchanges: the tech trends of 2018
Even before the recent jump in the Bitcoin profit scam, a lot of positive things were happening – in the technical area. A few months ago I criticized that more recent projects have too much focus on announcements and partnerships. In the meantime, there is again a lot of interesting things to see in the Bitcoin profit scam ecosystem:

The Lightning Network, Bitcoin’s Layer 2 solution, is Bitcoin’s answer to the scaling problem. We have reported elsewhere about the extremely busy developer scene around the off-chain solution. According to Lightning’s 1ML monitor, capacity has now increased to 80 Bitcoin, a 200 percent increase over the last month. Behind Lightning or similar solutions like COMIT or Plasma is much more than a scaling solution. It is extremely important that projects not only develop new crypto currencies, but also advance the application layer.

Decentralized stock exchanges have not only caused a stir with the latest statement by Vitalik Buterin. The fact that Binance, one of the largest crypto exchanges, wants to set up a DEX shows how important this technology is perceived. Strictly speaking, centralized exchanges are a single point of failure. Even if the latest Bancor drama shows that there is still a lot to be done, decentralized exchanges will shape the trading and investor landscape in the crypto sector – especially in connection with the Lightning Network and Atomic Swaps.

Stable coins such as tether have led to many controversies. Nevertheless, stable coins, crypto currencies whose value is firmly linked to an underlying, are an interesting concept. Stablecoins can create a safe haven for decentralized stock exchanges without the possibility of exchanging them in Fiat, where digital assets can be temporarily transferred. Technologically, there is even more at stake.

All these trends have one thing in common: they are accompanied by a few “Lambo” calls. The mood has cooled down in a positive way. The crypto-ecosystem is to be developed within the framework of various projects – one catchword is therefore #BUILDL.

Bitcoin is a good keyword: how would you present your role next to Bitcoin?

While this kind of governance is more or less unique in the crypto world, criticism is sometimes expressed: people who want to run master nodes have to put aside a security of 1000 DASH. The critics believe that the fate of DASH would be in the hands of the rich.

What do you think about these concerns?

As much as one can understand such concerns: This reserve is a security reserve, a collateral reserve. Without this, an attacker could set up a large master node network at very low cost – and not only take control of DASH governance, but corrupt the anonymity and fungibility of the crypto currency. This security of 1000 DASH guarantees a decentralized network.

At this point I would also like to emphasize that our roadmap provides a concept called “Masternode Shares”, a concept that should ultimately allow everyone to participate in the network.

DASH on the market

In addition to DASH, there are other crypto currencies that focus on anonymity. Two months ago, Monero has grown drastically in terms of market capital. Recently, a strongly sponsored network called ZCash has been dancing in the round for anonymity. How do you position yourselves in this competition?

On the one hand, DASH’s primary focus is to offer the user a great user experience. Anonymity is only one of many features. Other projects that only focus on anonymity don’t have the whole picture in mind and often push anonymity in favor of usability.

DASH tries to realize anonymity in such a way that the use of mobile devices is not a problem. In addition, anonymity is deliberately kept optional – donations, for example, could be deliberately kept transparent so that DASH and Bitcoin can be used under certain conditions desired by the user.

DASH’s goal is to be a digital counterpart to cash for everyday transactions. That’s why we focus on solutions that can be used in everyday applications. In contrast, Bitcoin seems to be more of a valuable object like gold – which is why people often talk about digital gold.

By focusing on the aspect of “digital cash” (DASH does not stand for digital cash for nothing), we want to expand DASH’s position as a crypto currency for smaller, more frequent transactions.

DASH Evolution – the future of payments
We are approaching the end of the interview. Can you tell us something about the future plans under the heading “DASH Evolution”?

Oh, we have a lot to do! DASH Evolution is supposed to be the big milestone of development. We are working to make this milestone the future of payment systems.

Evolution will be a user-friendly, decentralized system that includes a web wallet for normal, non-technical consumers. Users will be able to pay as easily as with PayPal – without having to relinquish control over privacy or the money itself.

Sellers will benefit from the fact that the integration of a payment option via DASH can be integrated into an online shop with just a few lines of code. This will enable merchants to address the target group using DASH almost immediately.

Users and dealers will be brought together in a marketplace integrated in the wallet. In a nutshell – Evolution will offer a smooth user experience with regard to the purchasing process and correspond to the best practices of the large payments industry.

It’s always nice to see how enthusiastic people are about a demonstration of Evolution – in that respect Dash will also knock out the big marketplace!