The age of trading Binaries is coming to a close as more and more financial regulators are starting to ban the activity. Although there are some cases where companies offer actual good opportunities to trade binaries, the bulk of the market eventually turns out to be either a scam or something unprofitable. If you are a binary trader and are looking for new opportunities then FX is your best bet. Let’s look at what’s best to do when you are switching.
Author Archive | George
The United States Department of Justice has been given an approval to search for new methods, in order to quickly notify victims of fraudulent binary options schemes. The “green light” was given by Theodore D.Chuang of the Maryland District Court. The victims of fraudulent binary options schemes were mostly connected to Lee Elbaz, the former CEO of the Israeli Yukom Communications.
The notification will be published on a website that is maintained by the Department of Justice. If you are not already aware Yukom Communications, was connected to massive Binary options scams that also involved US citizens. Therefore on Friday, January 18th, 2019, the Judge signed an Order, that gave the Government the responsibility to notify the victims as mentioned above.
Binary Options and bad history
You are probably already aware of the Binary options and CFD restrictions that ESMA has introduced to the EU market. However, not many people know as to why these trading methods needed to be completely banned, and here are the reasons. Lissa Mel, who was a co-conspirator with Lee Elbaz, was charged for conspiring a wire fraud. This meant that she conducted illegal marketing and sale of Binary options, which she masked with deceptive bonuses and the promise of high gains on these “investments”. Her case is one of many, that ESMA had to study.
Marketing & Sale of Binary Options
Yukom Communications was not directly involved in defrauding investors from their money, but they did have a big part in it. According to the reports, when Elbaz was the CEO of the company, they provided Binary Options marketing, traffic and customer “retention” services to two Binary Options “brokers”, BinaryBook and BigOption. Which were clearly scams, and Elbaz knew it. Therefore this makes her equally guilty as the owners of BinaryBook and BigOption.
Binary Options are a trading method that seems like it’s 50/50 when a trader is “investing”. However, it has been proven many times that the odds are weighed heavily against the investor. Even if the odds were fair, in most cases about 99% of the Binary Options brokers turned out to be scams back in the day when it was popular. Therefore in this day and age, every single broker tries to avoid the whole thing. The scams were the primary reason why ESMA cracked down on Binaries and there is absolutely no reason why they would absolve it now.
Fiat deposits are what actually started the cryptocurrency trend. It all began when everything was still measured in USD on the digital market. But today a lot of the times transactions are made in Bitcoin or Litecoin or any other cryptocurrency, sometimes confusing the traders. Bitfinex has identified the problem and has suspended all fiat deposits in order to make cryptocurrencies more effective in the circulation around the system. Bank transfers have also been stopped completely, because of the fact that the operations were in complete chaos, even though they denied it.
This latest suspension brings questions about the general future of the company and the industry itself. What will happen to all future deposits and what will they be like? Will Bitfinex be able to continue operating as it once could or will it fully cut off from the monetary system and start its dominance on the digital market? all of this questions need to be answered by Bitfinex itself or else it could be looking at a potential bankruptcy because of all the problems with these transfers.
It is known for a fact that Bitfinex has been banking with HSBC through numerous GTS (Global Trading Solutions). However, it is still unclear whether or not the crypto venue will be blocked by these companies and what other channels they have in order to face these challenges. These transmission delays are the top priority for every employee at Bitfinex at this point, because of the scale it may affect the market on a scale that nobody is expecting. Bitfinex had started assuring the customers that everything was under control and the situation would normalize within at least a week. But that week was going to be a hell of a ride for some investors as Bitcoin prices would surely react.
How is Bitcoin dealing with the news?
No matter what happened, Bitcoin was sure to react with its prices, some of the critics believed that the prices would go crazy and it would fall to the lowest it’s been this past year. But fortunately it managed to hold on to its number 1 place on the market and its relative price remained O.K. within the week.
What’s important to note here is that Bitcoin prices are one of the most responsive ones in the world. it is one of the most susceptible currencies regarding news and is sure to stay that way no matter who says what.
Numerous Binary Options traders were able to thrive on the market. However please note that we are talking about the legit and reliable brokers here. Unfortunately, however, no matter how many times we can talk about the legit binary brokers, they will still be outtalked by the scammers. Scammers have been around roughly the same time as binaries have been. After the industry was created it didn’t take much time for scammers to start emerging as well
Why was Binary so easy to scam?
Binaries were very easy to scam because of their gambling nature. Honestly, when you are trying to explain Binaries to a person who has never heard about trading it awfully sounds like gambling to them and they dont’t agree to it. This is what the legit brokers were doing, they were marketing it as it was and only getting customers who had fully understood the consequences and were ready to take the risk.
Scammers usually took a more charismatic approach to gain leads and bringing in customers. They mostly worked on elaborate schemes which included many online celebrities, promoting their web pages. Some of the biggest hoaxes were created to convince people that someone actually managed to make millions off of the market an now was living the dream life. Most of the times these scammers focused on the winnings which were sometimes ridiculous, like 100% or even 1000% being promised to these people. Many fell for the scams and soon the industry itself got banned in the EU.
However the ban was not able to kill off every Binary Options scam broker, some managed to slip through the cracks and a new one was found by the Central Bank of Ireland a week ago. 365BinaryOption.com was described by the CBI (Central Bank of Ireland) as a dangerous broker and advised the population to stay as far away from it as possible. There have been many cases of financial institutions taking a hands-on strategy to battle these brokers and the CBI is the latest example of them.
How did they appear?
The company markets itself as a regulated Forex broker within the territory of Ireland. However, the CBI warns that the broker is not regulated and is unauthorized to operate within the border of the country. This was a clear warning for the population to avoid them because such offenses are considered criminal in the country. The websites are a primary source of the company’s deceitful marketing. It shows up to potential customers as a trustworthy and reliable broker, which will take care of their investments and help them trade stocks, forex, and commodities. The list of warnings about the company has been growing and growing ultimately culminating with this official CBI warning. It looks like it’s days are numbered.
Next time you decide to choose a broker, please choose someone who doesn’t take pride in fancy words, but takes pride in actual numbers, numbers of people it has made rich with its services. Emphasize on its services, because trading binaries usually don’t require any.
Cryptocurrencies have had rivals from the very second they appeared on the market. Those rivals now have doubled or maybe tripled in numbers calling these trading assets unreliable or too dangerous to trade. Cryptocurrencies have already proven multiple times that they are a reliable trading asset, they have encouraged numerous young generation traders to get themselves familiar with the trading world. In all cryptocurrencies have been nothing but an asset to the wallets of many people and to the transaction fees and speeds for many.
One of the most notorious people who are against the development of cryptocurrencies into a stronger trading asset is a man named Nouriel Roubini. Roubini has always been a vocal opposer of the adaptation of cryptocurrencies on a decentralized level. In his words, the blockchain technology is not reliable and is only strengthened by popularity and not a real commodity.
Who is Roubini
Nouriel Roubini was born in Turkey and moved to the United States where he finished Harvard University with a degree in International Economics. His advice has been heeded in numerous high authority institutions including, The US Federal Treasury, The Bank of Israel and the Federal Reserve. What’s most important about this man is that he is a very good economist. He has been around long enough to be able to predict pretty much all of the outcomes in the market, however it looks like he has met his match with cryptocurrencies.
Roubini became very popular when he predicted the 2008 market crash, stating 2 years before it that home prices were under so much speculation that in a matter of years the market would have to face a lot of consequences for its inadequacy to handle the situation. This was not the only shining moment for Roubini, he also earned the nickname of Dr.Doom when he announced that Italy, Spain, Portugal, and Greece would leave the Eurozone.
Decentralization was the primary argument in Roubini’s speech at the MIGC (Milken Institute Global Conference) in May when he disregarded the benefits and good applications of decentralized and useful cryptocurrencies. In his belief all of the decentralized industries that were hit by the same applications turned into pyramid schemes, being nothing but a bother.
As we’ve already established, Roubini is not a big fan of cryptocurrencies, but he is not just a blind hater, he has analyzed everything in his mind and now offers his analysis in the form of a 37-page statement. In this analysis, he states several key points on why the cryptocurrency bubble is soon to explode. Here are the statements:
- Roubini’s believes that Fiat currencies hold a lot more value because of their inclusion in the tax system, with this he disregards the usefulness of cryptocurrencies in every-day life.
- He calls Stablecoins a large scam.
- The security, decentralization, and scalability are very hard to have at the same time, actually, he deems it as an impossible scenario.
- Bitcoin’s limit of 21 million will be its downfall, because of the susceptibility to deflation.
- Blockchain is not the core of the popularity of cryptocurrencies, the main attraction is Data science and artificial intelligence.
Binary options have been receiving nothing but hate in the past few years. They used to be very popular before everything came apart and all of the industry started crumbling in front of the eyes of the investors. Most of the brokers that used to work on Binary Options were legit good brokers, who promised their customers realistic returns and in all honesty, gave them those realistic returns.
What Happened with Binary Options?
Unfortunately, however, the gambling nature of Binary Options attracted a lot of scammers, who used to make this elaborate marketing campaigns, promoting their “successful” customers who made millions and are now retired living in the alps. Many people actually fell for these tricks, because they were quite new and nobody had experience in them. Soon enough everything came apart and the true face of Binary Options brokers was seen. Most of the scammers quickly scattered, leaving the reliable brokers to clean up the mess.
All the scamming and stealing forced the EU to ban the product completely. It decided that regulating them would be much more big of a hassle than just outright banning them. Plus the regulations would have been so harsh that most of the brokers wouldn’t even want to feature Binary Options because of the small profits. Unfortunately, however, the ban seems to have not worked.
It is so easy to mislead customers into believing that a certain broker is regulated by a well know regulatory body. Before everybody starts figuring out the scam and the official regulator issues a statement about them, they would have already made enough many to pack up, leave and then rebrand. This was the case when on October 4th, it was announced by the Cyprus Securities and Exchange Commision (CySEC) that two websites, Binatex and 24Traderush were misleading their customers by claiming to be regulated by the CySEC.
How these websites were scamming their customers
Even though the Binary Options industry has been pummeled into submission by the EU, some gullible citizens are still susceptible to promises of quick profits, promises of becoming millionaires an so on. All of the Binary Options that are a complete scam, are currently being advertised as life-changing investments that made people transfer from a 9 to 5 job to a financially independent life, with which they always travel and have lots of fun. They buy luxury cars homes and so on. Naturally, this was going to attract attention.
The next step was the call centers that would call you uncontrollably, trying to make you deposit some kind of fund in your account. What’s worse is that the calls look like they are coming from the UK, but it is obvious by the accents of the call center sales people that they are being outsourced somewhere outside the EU.
The only thing the regulators can do is to find, identify and ban these kinds of advertisements. However, before that can be achieved advise needs to go out to all the “get rich quick” enthusiasts to not get into trouble and stay away from those promises of quick money.
Facebook has once again appeared on the lips of the media, because of some more controversial news. The last time we saw Facebook in the news it almost destroyed their stock prices and all of the investors pretty much bailed, once the information was confirmed. Last time Facebook had a flop, it was because of the privacy of their user’s profiles. They were accused of selling the data that they owned to numerous companies, without the consent of their users.
Even though this was included as major news, nobody really reacted in a way that was too shocking. It was as if all of this info was known beforehand and everybody was in on it. But it still sent quakes around the world, making the companies update their privacy policies and informing their customers about the supposed changes.
Why is Facebook in controversy again?
This time, however, the reason Facebook is in the news may not be their fault entirely. The internet is a big place, it is the home of everything and everyone who decides to utilize it. One of the most dangerous residents of the internet is probably the hacker. These types of hacked were able to procure about $600 million worth of account data which they are selling in the deepest depths of the web.
The dark web
The dark web is a place where everything controversial, everything shady and sometimes everything illegal can happen without too much interference from the law. This is a place where sometimes the worst of the worst gather, even though data selling is not the worst offenses, it is still privacy infringement at its finest. Accounts are now worth somewhere between $5 and $10. Everyone who wants to obtain these account data will have to pay in digital currency or else the banks would be able to trace their transfers.
Because of a breach within the digital securities of the webpage, hackers were able to access Facebook’s token storage. With this, they procured as much as they could and then disappeared never to be seen again. Until these very tokens started to appear on the dark web as commodities for sale. Tokens are basically keys that you as a user are using in order to access your account.
Is Facebook saying anything?
Facebook has already denied allegations of being an accomplice of these hackers and leaving the breech intentionally. It is still quite disturbing to think that Facebook has the capability to do that even if it didn’t do it. The account data is now sold on the deep web, on a website called Dream Market. This is where people can buy multiple digital products with digital currencies like Bitcoin and etc.
The CEO of Facebook, Mark Zuckerberg has also come out with a statement, saying that the reason behind these attacks is the weakness of the tools they have against hackers. He expressed his willingness to start working on more advanced defense mechanisms to prevent the same issue in the future.
Blockchain has become so popular within this 1 year, that more jobs were created in the industry than it could keep up with. Data analysts, blockchain programmers and financial analysts suddenly saw a spike in the demand of their professions. Therefore the salaries increased exponentially, nearly tripled in size. All of this chaos of finding the right people for the job required a contractor, a recruiter who would only specialize in blockchain, that came to be in the face of ScoutChain.
ScoutChain is somebody to look into because of their latest partnership with a blockchain accelerator. Block Crafter was able to procure this partnership with ScoutChain on October 4th. The core of the collaboration was with accelerating all the processes connected to blockchain recruitment and the transformation of the experience. In order to make a lot more good decisions over the staff, more acceleration was needed in their system.
How does ScoutChain recruit?
The easy description of the process that individuals go through when applying for a job in ScoutChain is that they basically exchange data through a blockchain, which in turn guarantees their privacy and security. The whole platform was built on blockchain technology and doesn’t even require an operator because it already has a life-long one, artificial intelligence. ScoutChain is trying to tap into the global market, because of the reason how international the blockchain industry has become. Some countries who have some of the biggest capital sometimes don’t feature enough local experts for their business processes and have to hire internationally. ScoutChain is aiming to make this process easier by letting its platform process all of the data sent in by applicants and only give the green light to the ones most qualified for a potential blockchain job. After this companies will be able to easily access the information given by the candidates and choose their desired ones to interview.
Who are these companies?
Block Crafters are sort of like angel investors for any tech or financial startup. They have not been prevalent only in the Blockchain industry, but have touched numerous other aspects of fintech. They are basically an accelerator, helping startups in IT to get started, become popular and get established as good and reliable businesses. For large corporates, they act as contractors or developers with an outsourcing service. They provide the acceleration of newly implemented fintech related proceedings in large companies. They are very proud to be able to provide such services and promote investments in blockchain technology and other IT startups.
ScoutChain was a primary target for Block Crafters because of the fact that, they were one of the biggest recruiters in the industry. Some of the staff in Block Crafters actually found their jobs with the help of ScoutChain. The CEO of ScoutChain Moon has also agreed that a partnership with this company was pretty much always on the horizon. They admire all of the projects that Block Crafters enable and the angel investment attitude that their company promotes to others.