Hydra, Russia’s biggest darknet marketplace has announced a token offering in an attempt to raise $146 million to fund global expansion.

Illegal, in more ways than one

According to Forklog, the token sale is very likely illegal, and not just in terms of breaching securities and financial rules and regulations. Nope, Hydra has openly said it wants to expand its unique model of anonymous trading of illicit substances.

Hydra despatches illegal products via couriers, who then leave the good in pre-agreed concealed spots in public locations. The buyer then collects the goods at a later time, meaning that buyers, sellers and courier never meet or see each other.

Ushering in a “new era in the West”

In an ‘investment memorandum’ which can only be accessed using dark web browsers like Tor, the platform says its global expansion will usher a “new era in the West” on a scale that’s “hard to imagine.”

The operators of Hydra say they intend to introduce a new service called “Eternos”. This will combine encrypted messaging, a privacy-optimised web browser, automated dispute resolution, and an over-the-counter marketplace and cryptocurrency exchange.

‘Guaranteed’ $500 monthly dividends

The token sale is slated to go live on 16^th December, and will see investors offered bundles of 100 tokens, each giving rights to a 0.003% share of platform profits. Each token will be priced at $100 and must be purchased with Bitcoin (BTC).

Hydra plans to issue 1,470,000 tokens, equating to 49% of Eterno’s value and has promised $500 in monthly dividends for anyone purchasing 100 tokens or more, based on an estimated monthly revenue of $15 million.

According to Hydra, it currently has more than 3 million users and handles more than 100,000 transactions each day, covering things like illicit substances, hacking services, forgery services, stolen data and cash.

AYO.NEWS says:

Obviously, Hydra’s plans will draw comparison with the infamous Silk Road, which was shut down by authorities in October 2013, and whose founder Ross Ulbricht was sentenced to life in prison for money laundering and aiding in the distribution of drugs, computer hacking, fraud and other crimes.

Alphabay, Hansa, and RAMP (Russian Anonymous Marketplace), were other popular darknet marketplaces that were all shutdown by Operation Bayonet – an international law enforcement operation that culminated in 2017. However, illustrating the challenge facing authorities, their closure did little to stop illegal traders, who simply switched to alternative darknet marketplaces – which can be launched as quick as they are shut down.

Of course, given the illegal, shadowy and anonymous nature of Hydra, its difficult to believe that many ‘investors’ will really trust those behind it to deliver on their promises. And, its easy to see that anyone investing in the platform will likely make themselves party to much more serious crimes than merely using it to buy some drugs or stolen data.

If Hydra really does try a big rollout globally we expect we’ll be hearing a lot about it in mainstream media before long. Unfortunately, that coverage may well frame cryptocurrencies, and blockchain technology in general, in a very negative light.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

International fintech company Cindicator has launched the world’s first quantitative crypto hedge fund powered by Hybrid Intelligence.

The company describes Cindicator Capital as a “unique ecosytemic fund, based on an alpha-generating vehicle including thousands of decentralized analysts from 135 countries.”

Cindicator says the system works like this; the data flow of millions of forecasts from the analytical platform (app.cindicator.com) is enhanced with machine learning models and then feeds a variety of algorithmic strategies. The fund also develops strategies based on quantitative research on a variety of data sets.

Some of the revenue raised by the fund will be paid to reward analysts for correct forecasts. Apparently, this will be done “in proportion to their intellectual efforts and the quality of indicators based on their predictions.”

The company says it has already invested $500K into the fund’s strategies, and that figure will rise to $2.5 million of their coming months. As evidence of the Hybrid Intelligence-run meta-strategy’s success, the firm points to “strong double-digit annual returns on Bitcoin.”

The fund is open to investors from most jurisdictions, including the US, EU, UK, and countries in Asia and the Middle East.

Cindicator Capital team members have worked with major financial firms like WorldQuant, Bloomberg and Fidelity, along with leading academic institutions.

Discussing the launch of the fund, co-founder and CEO of Cindicator, Mike Brusov, said:

“Today, the Cindicator ecosystem is entering the next level of its development, preparing to start the onboarding of external capital from a fund of funds, family offices, VC funds, institutional investors and high-net-worth individuals. The combination of the collective human mind and machine intelligence provides a unique and sustainable data source for seeking alpha.”

While co-founder & CTO of Cindicator, Yuri Lobyntsev, added:

“We are happy to launch the first ever ecosystemic hedge fund, the financial institution of the new era. The symbiosis of human and machine stands behind the investment vehicle, which is a game-changer for the money management industry.”

AYO.NEWS says:

These days we hear a lot about Artificial Intelligence in the fintech industry, but Hybrid Intelligence is perhaps even more useful as things stand right now – enabling the sheer analytical power of machine learning and big data to be combined with human intuition.

Investment platform Pynk is also using a combination of ‘Crowd Wisdom’ and AI to make investing easier, safer and more accessible for everyone, everywhere. Don’t miss our exclusive interview with Pynk’s Co-Founder and COO, Rupert Barksfield here.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

Eran Eyal, founder and former CEO of Shopin, has been convicted of orchestrating a fraudulent ICO after pleading guilty to charges in New York.

Yesterday we reported that the United States Securities and Exchanges Commission (SEC) had charged Eran Eyal, founder and former CEO of Shopin, with running a fraudulent $42m initial coin offering (read more). Today he stands convicted.

Eyal also pleaded guilty to, and was convicted of, two counts of Scheme to Defraud in the First Degree, a Class E felony, related to his two previous companies; Springleap, Inc, and Pass Sync, Inc.

New York Attorney General (NYAG) Letitia James announced the conviction after Eyal pleaded guilty to the felony charges. Regarding the case, James said:

“My office won’t allow white collar criminals to get away with their schemes to defraud innocent victims, no matter how complex.

“This one individual created company after company after company just to continue cheating investors out of hundreds of thousands of dollars. Using fake product trials and nonexistent contracts with major retailers he was able to lure victims to invest in his technology schemes, including his very own cryptocurrency. We will use every available resource at our disposal to pursue all who attempt to abuse and manipulate the system, because no one is above the law.”

Despite the serious nature of his offences, and the determined words of the New York Attorney General, it looks like Eyal has escaped jail time. Instead, he has been ordered to pay $125,000 in restitution and $475,000 in judgments to investors. He must also surrender the $450,000 worth of crypto remaining to the NYAG’s office.

Unsurprisingly, Eyal has also been forced to step-down as CEO of Shopin and is prohibited from raising capital or serving as a business officer in the state of New York for three years.

AYO.NEWS says:

Well, that was quick! Given the scale of Eyal’s crimes, and his track record, it is perhaps surprising that he’s not looking at a serious jail sentence. Despite his three-year ban in New York, something tells us we’ll be seeing Eyal back in business, somewhere, sometime real soon…

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

Game.tv, the AI-powered esports tournament platform, has secured $25 million in a Series A funding round let by Intel Capital.

The news comes as Game.tv launches its Tourney we application, which allows players to create and operate mobile gaming tournaments through Discord.

Discussing the developments CEO of Game.tv, Rosen Sharma, explained:

“AI is the key. In esports today it is difficult to make money unless you are running large professional tournaments and events. Most tournaments run and make money from sponsorships, which exist only for the big events. AI doesn’t need to make money in order to host an event, thus enabling tournaments in communities at any scale so long as people are willing to participate.”

While Managing Director at Intel Capital, Arun Chetty, added:

“When Game.tv’s platform crossed 10,000 tournaments in a short period of time, we sensed something big was going on here. As a big supporter of both esports and emerging technologies, Intel is always looking for ways to accelerate adoption of esports. We believe that Game.tv has a unique vision and technology and with this funding, they can gain a big piece of the esports market segment.”

Sharma, who is also president and CEO for cross-platform virtualisation developer BlueStacks, founded Game.tv in 2018.

AYO.NEWS says:

$25 million is a serious sign of faith in Game.tv on the part of Intel Capital and the other investors, and will surely give the platform a fighting chance of carving out sizable market share.

Staying with esports tournament platforms, only yesterday we reported that Australia-based Esports Mogul had secured commitments for $3.97M AUD ($2.71M) in a placement led by CPS Capital (read more).

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

Binance, the world’s biggest cryptocurrency exchange by volume, has announced the launch of its Latin American fiat gateway.

Announced during the laBitConf in Montevideo, Uruguay, the platform is called Latamex and will operate under the Binance Fiat Gateway, allowing Argentine and Brazilian users to purchase cryptocurrency with fiat currency – initially Bitcoin (BTC), Binance Coin (BNB), Ether (ETH) and Binance USD (BUSD) with either Argentine pesos or Brazilian reals.

The service is being offering in association with Latin American digital asset liquidation network Settle Network.

Commenting on the launch Binance CEO, Changpeng Zhao, said:

“There is a strong need for cryptocurrencies in Latin America, especially for financial access. Roughly 50 percent of the Latin American population is unbanked, and Latamex is a response to our users’ demands and the current market climate.

“Working with Settle Network allows us to instantly bridge the gap between fiat and crypto for Latin American traders. We are continuing to build with our key partner, Settle Network, to bring wider accessibility of cryptocurrency in Latin America and will support additional local fiat currencies in the region in the future.”

While Founder and CEO of Settle Network, Pablo Orlando, added:

“Latin America has illustrated one of the largest needs and use cases for blockchain and cryptocurrency adoption. Partnering with Binance has allowed us to further open fiat gateways for Latin American users together and bring larger adoption forward to provide financial freedom in the region.”

AYO.NEWS says:

Latin America, along with Africa and parts of Asia stand to benefit enormously from blockchain and crypto tech. Earlier today we released an exclusive video interview with Jiawan (Jill) Ni from the Binance Charity Foundation, in which she talks about how blockchain and cryptocurrency adoption can help the unbanked access financial services for the first time (see here).

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

AYO.NEWS’ Simona Pinterova talks with Jiawan (Jill) Ni from the Binance Charity Foundation, at DELTA Summit 2019, Malta.

Jiawan explains how the Binance Charity Foundation is showing the world that blockchain and cryptocurrencies can be a powerful force for good. For example, highlighting how blockchain and crypto tech can help the world’s poorest and most isolated populations access critical financial services for the first time.

Find out more about the Binance Charity Foundation at https://www.binance.charity/

Stay tuned for more exclusive videos from the DELTA Summit 2019, Malta’s official blockchain, AI and emerging tech event.