Tezos co-founder hit with ban, $2,000 fine from FINRA

Arthur Breitman, the controversial co-founder of Tezos tech project, is once again in the headlines following reports that he was fined by the Financial Industry Regulatory Authority (FINRA) to the tune of $20,000. This occurred due to the fact that Breitman made a number of false statements regarding his venture whilst he was still an employee of Morgan Stanley. Securities professionals that are registered with the FINRA are required to explain any activity that is carried out for profit that has nothing to do with their employment if this activity results in some sort of compensation.

Breitman, a French citizen registered with FINRA, reportedly started working in the Tezos project between 2014 and 2015, while he’s still employed at Morgan Stanley. A Reuters report published a business plan written by Breitman that listed him as chief executive of the company—which its executives expected to make $20 billion in over 15 years. Additionally, Breitman wrote two papers under the pseudonym L.M. Goodman, an indication that he wanted to hide his connection with the company.

It appears, however, that the Wall Street regulator has already reached an agreement with Breitman over that incident. In its settlement agreement, FINRA said: “Breitman did not notify Morgan Stanley at any time that he was engaging in these outside business activities,” He was fined $20,000 and was also banned from entering into any brokerage dealings for a period of two years.

Breitman did not specifically admit or deny the charges, and his lawyer Sarah Lightdale said, “The settlement with FINRA is unrelated to and has no impact on the launch of the Tezos network. Arthur cooperated fully with FINRA at all times and Arthur is pleased to put this personal matter behind him.”

This is not the first time that Tezos has been involved in conflicts and controversy. The Tezos Foundation allegedly raised $232 million in July 2017 to build a blockchain network for smart contracts. However, none of the cryptocurrency has been delivered as yet due to problems with legal issues and internal conflict at board level. According to reports, there were substantial conflicts between Kathleen and Arthur Breitman and the president of the Tezos Foundation, Johann Gevers, who was also accused of attempting to embezzle funds and hindering the progress of the coin. There were also a number of class action lawsuits brought against the Tezos Foundation from investors as well as accusations of securities fraud and persistent rumours that the SEC would be launching an investigation into the foundation’s operations.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

SegWit Bitcoin could be worthless, says Morgan Stanley

The last few weeks have seen spectacular ups for SegWit1x (BTC), capped with a notable down, as prices finally corrected with the launch of BTC futures. But according to one analyst at Morgan Stanley, the true value of the world’s biggest cryptocurrency could be much closer to zero.

In a research note published last week, called ‘Bitcoin Decrypted’, analyst James Faucette said that despite the strong price performance in 2017, BTC could actually be worth zero, with no inherent value beyond speculation.

The research note takes a more notably pessimistic view on the digital currency than most, highlighting the lack of an interest rate, and the lack of any intrinsic value as an asset as being the underlying reasons for the negative assessment.

However, Faucette suggested that BTC still held some value as a payment network, despite the acceptance and transaction numbers stalling or even falling by some measures. In the note, he concludes this points to BTC being essentially worthless.

The news will cause concern to those investors still holding BTC, and could suggest a further decline in price in the weeks ahead. At the time of writing, BTC was trading at $15,840, down 1.3% over the last week, following highs of nearly $20,000.

The paper gave no price target for BTC, and suggested that while Bitcoin could be considered an asset like digital gold, it cannot be recognized as a currency in its current form.

Faucette pointed out the fractional trade volume levels as compared to other markets, and the general lack of acceptance of BTC as a payment method. Transaction fees and processing times were highlighted as further stumbling blocks, surmising that “…if nobody accepts the technology for payment then the value would be 0.”

The research note, which is published for the benefit of Morgan Stanley investment clients, takes a markedly more downbeat tone than most, but is only the latest criticism of the asset class from Morgan Stanley analysts.

Previous research notes have identified price corrections, and urged caution for investors considering buying BTC.

After a tumultuous two weeks’ trading, it remains to be seen whether the Morgan Stanley research note offers an accurate forecast.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

SegWit Bitcoin could be worthless, says Morgan Stanley

The last few weeks have seen spectacular ups for SegWit1x (BTC), capped with a notable down, as prices finally corrected with the launch of BTC futures. But according to one analyst at Morgan Stanley, the true value of the world’s biggest cryptocurrency could be much closer to zero.

In a research note published last week, called ‘Bitcoin Decrypted’, analyst James Faucette said that despite the strong price performance in 2017, BTC could actually be worth zero, with no inherent value beyond speculation.

The research note takes a more notably pessimistic view on the digital currency than most, highlighting the lack of an interest rate, and the lack of any intrinsic value as an asset as being the underlying reasons for the negative assessment.

However, Faucette suggested that BTC still held some value as a payment network, despite the acceptance and transaction numbers stalling or even falling by some measures. In the note, he concludes this points to BTC being essentially worthless.

The news will cause concern to those investors still holding BTC, and could suggest a further decline in price in the weeks ahead. At the time of writing, BTC was trading at $15,840, down 1.3% over the last week, following highs of nearly $20,000.

The paper gave no price target for BTC, and suggested that while Bitcoin could be considered an asset like digital gold, it cannot be recognized as a currency in its current form.

Faucette pointed out the fractional trade volume levels as compared to other markets, and the general lack of acceptance of BTC as a payment method. Transaction fees and processing times were highlighted as further stumbling blocks, surmising that “…if nobody accepts the technology for payment then the value would be 0.”

The research note, which is published for the benefit of Morgan Stanley investment clients, takes a markedly more downbeat tone than most, but is only the latest criticism of the asset class from Morgan Stanley analysts.

Previous research notes have identified price corrections, and urged caution for investors considering buying BTC.

After a tumultuous two weeks’ trading, it remains to be seen whether the Morgan Stanley research note offers an accurate forecast.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.