DeFi project Hotdog appears to have crashed and burned within hours of launching, dropping from $4K to $1 in 5 minutes. 

Hotdog, which was the latest clone of popular token swap and liquidity platform Uniswap, had been promising ridiculously high returns of up to 1,000,000% APY to entice liquidity providers. 

Predictably, on launching yesterday the token surged to over $5K and then crashed epicly. At the time of writing, the token was worth a dismal $0.0176. 

$4000 to $1 in 5 minutes.

ok can you guys stop trading pic.twitter.com/cZRTBfyJj3

— lowstrife (@lowstrife) September 2, 2020

Hotdog, like Sushi and Kimchi, is capitalising on the cloned yield farming model, allowing liquidity providers to deposit Uniswap liquidity pool tokens, to earn HOTDOG tokens. These food-themed tokens would then entitle users to earn part of the protocol’s fee. 

DeFi traders known as degenerate farmers, or ‘degens’, jump on these tokens, inflating prices to insane levels and hence driving yields, before quickly cashing out. Needless to say, while a few very quick traders net a huge profit, the vast majority lose big time.

AYO.NEWS says:

While still relatively fringe, cloned yield farming projects like Hotdog, Sushi, and Kimchi, have the potential to do a lot of damage to the DeFi community as a whole – not just by burning naive investors, but by projecting a very negative image to the wider world and distracting mainstream media from the many genuine tokens with real use cases and real value. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

If you’re an 80’s kid prepare for some great news: the Care Bears are coming to The Sandbox Metaverse.

Yes, the 1980’s premier ambassadors of caring and understanding will be making the jump into a virtual version of the Care-a-Lot kingdom, thanks to a partnership between The Sandbox and Care Bears owner Cloudco Entertainment. 

In addition to getting a whole bunch of fuzzy wuzzy feelings from exploring the virtual kingdom of Care-a-Lot, players will be able to get their paws on special Care Bears-themed non-fungible tokens (NFTs).

Since launching in 1982, the Care Bears brand has generated more than $5 billion in global retail sales, and proving there’s still plenty of fans out there, a recent toy relaunch sold out in Walmart and online. 

A true virtual world and economy, The Sandbox allows players to buy virtual land (LAND), build and create gaming experiences for others to enjoy, and trade virtual assets. True ownership of assets is ensured by the use of NFTs. 

The Sandbox already has over 50 partners, including major brands like Atari, and CryptoKitties, and has attracted investment from several well-known VC funds, including Square Enix, B Cryptos, Mindfulness Capital, and True Global Ventures. 

AYO.NEWS says:

So far my older sister has displayed absolutely zero interest in blockchain technology, but I’ve got a feeling that’s about to change! 

Even if the Care Bears aren’t your thing, the fact that the brand is coming to The Sandbox and embracing NFTs, really does reflect the rapidly growing appeal of blockchain-based gaming, collectibles, and trading. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Police in South Korea have reportedly raided the offices of Bithumb, the country’s largest cryptocurrency exchange. 

According to local news publication Seoul Shinmun, a specialist intelligence crime unit from the Seoul Metropolitan Police Agency, swooped on the company’s office in the Gangnam District of the city on 2 September, conducting a search and seizure operation. 

The police raid is thought to be connected to the ongoing investigation of Lee Jung Hoon, chairman of the board at Bithumb Korea and Bithumb Holdings, for his part in the BXA token fraud. Newsis is also reporting that police are investigating whether Bithumb has violated South Korea’s Foreign Exchange Transaction Act and Capital Market Act.

BXA was issued by the Blockchain Exchange Alliance (BXA) and Singapore-based BXA Consortium, and promoted as ‘Bithumb’s native token’, but it is now being alleged it was actually a sophisticated scam that saw investors lose around 30 billion won (approx. $25m USD). 

Bithumb is currently the world’s ninth biggest cryptocurrency exchange in terms of average trading volume, and is thought to be planning an initial public offering (IPO). 

Coinbit, South Korea’s third largest crypto exchange was also recently raided by police investigating market manipulation.

AYO.NEWS says:

Needless to say this could end up being very damaging for Bithumb and its IPO ambitions. Given the exchange’s global profile, it’s also got the potential to heap a lot of negative publicity on the crypto industry as a whole. Obviously, it wouldn’t be appropriate to comment on the details of the case, but we’ll be watching…

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Tezos finally settles a class action lawsuit for $25 million USD, bringing to end a 3-year litigation process. 

In its 2017 ICO, Tezos, which had developed a proof-of-stake blockchain, raised a staggering $232 million. However, in December 2017, a group of private plaintiffs launched legal action against Kathleen and Arthur Breitman, founders of Tezos, plus the Tezos Foundation, accusing the project’s ICO of being an unlicensed securities offering.

Though both parties had agreed on the settlement in California back in March, it has now been approved by a Federal judge. 

The settlement will see the $25m shared out among all those who participated in Tezos’ 2017 initial coin offering (ICO) between 1-13 July and sold their XTZ for a loss prior to 25 November 2019, did not sell their tokens before 25 November, or have lost their passwords and are unable to access their XTZ altogether.

However, the defendants, Tezos’ founding family, and anyone who held a position within the Tezos Foundation, or any firm with a “controlling interest” in the ICO, are excluded from the settlement. 

In addition to the settlement of $25, Tezos has been ordered to pay legal fees worth around a third of the settlement, plus the defendants are required to pay an additional $203K of legal costs separately. 

As part of the settlement, the plaintiffs have forfeited their rights to make any future claim against Tezos or any of the defendants. 

Parties have until 16 October to file claims in the settlement.

AYO.NEWS says:

Though this settlement has been on the cards for months now, federal approval means Tezos can finally get things sorted and put an end to a 3-year headache, and concentrate on innovating and building for the future. 

Other blockchain and crypto projects are not so lucky, and can look forward to years of legal wrangling, and possibly expensive settlements, legal costs, and maybe even worse. 

For example, in June Bittrex and Poloniex were dragged into a class-action lawsuit alleging serious market manipulation during the 2017 bull run. While, in May, seven crypto firms, including Binance, BitMEX, Block.one, and the Tron Foundation, were hit by lawsuits filed in New York. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Identity Verification-as-a-Service solutions provider IDnow, has announced the acquisition of Wirecard Communications Services. 

According to IDnow, the COVID-19 crisis has led to a sharp increase in demand for its digital verification procedures, and the acquisition will help it increase responsiveness and cut waiting times for customers.

Wirecard Communications Services GmbH was established in April 2003, as part of the now defunct Wirecard Group – which recently collapsed in a high-profile scandal. It was offered for sale by way of an asset deal.

IDnow and Wirecard Communications Services have already been working successfully together for more than five years, and the deal will see IDnow retain the Leipzig office and the majority of the 150 employees based there.

Discussing the acquisition CEO of IDnow, Andreas Bodczek, said:

“With the integration of Wirecard Communication Services into the IDnow Group, we are seizing the opportunity to further improve our range and service quality for our customers. 

!We have worked in close collaboration with this division of the company for several years and greatly appreciate the qualifications and experience of its employees. We are on a strong growth path and will maintain and further develop the Leipzig location.”

While Managing Director Wirecard Communications Services, Amra Blume, added:

“We are delighted to have found in IDnow a buyer who appreciates and knows our company and has such a friendly culture. Personally, I am very pleased to stay on board and work in the team at IDnow.”

AYO.NEWS says:

2020 has seen a seismic shift as thousands of businesses around the world rapidly pivoted to an online model, to ensure they could keep trading in the face of the COVID-19 lockdowns and uncertainties. 

In doing so, many are finding they urgently need effective ID, KYC, AML and security services, and the challenge for many such providers has simply been keeping up with demand. Clearly, IDnow have decided to make the most of the opportunity, and with no end to the crisis in sight, we’d say the future is bright for the company. Its also fantastic news for the Wirecard employees, who were facing a very uncertain future. 

As we recently reported, the COVID-19 crisis is also fueling the adoption of technologies like blockchain, as both companies and institutions scramble to find new, secure solutions to allow them to operate entirely online.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

SiGMA Group has announced the 4th edition of the AIBC Summit has been rescheduled due to the ongoing COVID-19 crisis. 

With Malta now suffering one of the highest infection rates in Europe, organisers have postponed the AI, blockchain, IoT, Quantum, and emerging tech event until 17-18 February 2021, when it will run alongside the SiGMA iGaming summit at the Malta Fairs & Conventions Centre (MFCC). 

Explaining the decision SiGMA Group Founder, Eman Pulis, said:

“AIBC 2020 was due to take place this Nov, the show was sold out and we were extremely excited for this edition to take place. However COVID-19 had other plans and therefore we have decided to postpone the show for another 3 months. I must send my gratitude to all the exhibitors who agreed to move their participation at the event with us. I look forward to the new dates and I look forward to welcoming you all with arms wide open.”

AYO.NEWS says:

As we’ve said before, while we very much hope things do get back to ‘normal’ next year, given what we’re seeing on the ground all over the world –  record infection rates, and the fact that every time restrictions are eased in an area, infections seem to rocket, causing restrictions to be reimposed – its perfectly possible that, unless governments decide to adopt a completely different approach, we’ll still be in a very similar situation well into next year. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020