Twitter scams and other crypto news this week
On Thursday, Bitcoin Cash, itself a "fork" (or clone) of the original Bitcoin, split into two versions that will go their separate ways, and create their separate sets of headaches for users. But here's what else happened in the industry this week.
Catch up quick: Cryptocurrency scams are thriving on Twitter eight months after it said it was working to eliminate them; two initial coin offering issuers settle Securities and Exchange Commission registration charges; and Nvidia nurses a "crypto hangover" as demand for mining chips evaporates.
- Why it matters: Scammers on social media networks are taking advantage of two weaknesses at the same time. The first is the frenzy and lack of information about cryptocurrencies that are making it easy for people to buy into scams because they believe they can make a quick buck. The second is that social networks like Twitter still have a lot of work to do to keep this type of abuse completely at bay.
- Why it matters: "These are the Commission’s first cases imposing civil penalties solely for ICO securities offering registration violations," the commission wrote in its announcement. It added that both issuers, Airfox and Paragon, conducted their ICOs after the SEC issued its report last year warning the industry that some could qualify as securities.
- Why it matters: The ups and downs of cryptocurrency prices have business consequences beyond their direct investors, as Nvidia's challenges shows. Similarly, investors had concerns over the valuation of cryptocurrency exchange Coinbase, as Axios previously reported, due to its exposure to digital token prices.