Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
World’s Largest: OurCrowd Still on Track to Top USD $1 Billion in Investment Crowdfunding
Crowdfund Insider | | Sep 18, 2018
In many ways, OurCrowd epitomizes the aspirations of what investment crowdfunding has the potential to deliver for both issuers and investors. By providing access to quality deals to smaller (accredited) investors, OurCrowd has opened up an asset class previously closed off to all but the very fortunate. On OurCrowd, you can find yourself investing alongside some of the biggest names in venture capital – at the exact same terms – an important distinction. It is also important to note that OurCrowd has skin in the game for each offering it lists on the platform – thus interests are aligned: OurCrowd wants the company to succeed and it also very much wants to see a return on its own investment. These qualities make OurCrowd a compelling option for investors that are willing to shoulder an element of portfolio risk that can also drive some outsized returns.
OurCrowd is based in Israel – where many of its investments are made – but its vision is to empower investors globally and fund companies regardless of geographic borders. This is what you want to see in the digitized, internet fueled Fintech age.
CI recently caught up with Jon Medved, the ubiquitous founder and CEO of OurCrowd, for an update on platform progress as they execute on their mission to democratize access to opportunity.
Earlier this year, you indicated OurCrowd would top USD $1 billion of investment at some point this year. Is this still on track?
Jon Medved: Yes, our growth in both active new investors and average investment sizes are scaling according to plan through the first half and we believe we will have an even stronger second half result.
Recently OurCrowd was recognized as the top VC in Israel, do you think you can replicate this accomplishment in other countries over time?
Jon Medved: Our focus is on becoming not only the “most active VC investor” but becoming one of the “most successful VC investors.”
When we started, I don’t think many believed that our model could scale this effectively, yet here we are.
Since this asset class has a long growth curve of 7-10 years or beyond to bear the greatest fruits, we know we need to be persistent but patient.
We now have 20 different portfolio companies whose value is $100 million or more, so many of our investments are starting to mature and we are encouraged by their progress. The next phase will clearly be to replicate our level of activity in Israel to other regions of the world. While we are already sourcing about 30% of our deals outside of Israel, we would like to grow this percentage. The key to doing this will be to open up more offices (we already have 11 worldwide offices), sign more global strategic partners, and to engage more active investors who will help us source and diligence quality deal flow in their regions and their areas of expertise.
See:
-
Report: Crowdfunding Platform OurCrowd Reaffirms Expectation to Top $1 Billion this Year
-
Equity crowdfunding is eroding the best returns VC funds used to enjoy
This month, OurCrowd announced its second investment in unicorn Klook which was your first China investment. How is deal flow for China based firms?
Jon Medved: Our growing network in Asia is a credit to the strong partnerships we have enjoyed in the region. As with everything in our industry, the winning formula always starts with the right people. Not only the people within our organization and across our strategic alliances, but the people we choose to invest in.
In Asia, more than anywhere, access to deals comes from a position of trust. As we grow our investment community in Asia, we hope to find more deals like Klook. Asia has so much promise and upside and spectacular entrepreneurs—but the key will be to deliver added value to these companies and provide them with important access to the rest of our global network.
OurCrowd has a growing portfolio of sector funds for investors. How are these progressing? Will you always offer single firm investments?
Jon Medved: Absolutely we will continue to offer single firm investments; this has been and will continue to be the bedrock of our investment platform.
Our unique ability to deliver deal-by-deal discretion and the “freedom of choice” continues to be a really exciting core of our business. This is especially true as we offer companies at different stages (from Series A to Series E), in different sectors, and with the ability to invest in multiple rounds (we have some companies where we have already participated in 5 rounds of funding!)
The fact that someone can access great globally recognized venture capital funds with a minimum investment of only $50,000 is a game changer.
However, that said, we are also excited by the growing fund opportunities that we are providing on the platform. We now offer 13 different funds, which fulfill a real need for our investors who want managed portfolios and diversification. The fact that someone can access great globally recognized venture capital funds with a minimum investment of only $50,000 is a game changer. While maintaining our single company investments we also plan to also expand our fund model to many other sectors and strategies, because there is a real synergy between our funds and the single companies on our platform.
More:
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$5 million Equity crowdfunding extended to private companies
-
NCFA: Canada Needs a Harmonized Securities Environment as Current Provincial Approach is a Fintech Innovation Killer
What about institutional growth. Last time we spoke much of the platform growth was being fueled by institutional money. Is this continuing? What type of institutional interest are you seeing?
Jon Medved: We have indeed signed several agreements recently with institutional investors who have become our largest and most active investors and partners to date.
What is really exciting about this institutional growth is that it has not come at the expense of our 25,000 accredited investor base. We continue to grow this accredited investor base, and we are proud that we continue to offer deal access to both the individual accredited investor and the huge institution on the same terms. This is a fulfillment of our goal to democratize access to quality venture capital. We are seeing growing institutional interest in our individual company investments especially as many of our deals start to raise $10 million and up on our platform, where there is room for institutions to take a real swing and get the size they want.
Also, the institutions like the fact that they can build their own personalized fund of funds on our platform where they can get a basket of funds without paying the additional fees and carry normally associated with fund of funds.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CNBC | MacKenzie Sigalos and Rohan Goswami | Feb 6, 2023 Binance, the world’s largest cryptocurrency exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision. “We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson told CNBC. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.” Impact: Binance US, a unit of the company that’s regulated by the Treasury Department’s Financial Crimes Enforcement Network, said in a tweet that it’s not affected by the suspension. Thus the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars. Binance’s net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham. Binance said customers can still use other fiat currencies or payment methods to purchase crypto. For the small number affected, “we’ll have a new partner to announce for those users in ...
Read More
Business Insider | Brian Evans | Feb 2, 2023 Bridgewater Associates founder Ray Dalio warned Thursday of a looming currency crisis and that an inflation-linked cryptocurrency would be safer than bitcoin. Dalio on Bitcoin: In an interview with CNBC, he asserted that the largest cryptocurrency by market capitalization "has no relation to anything" and denounced opinions that bitcoin is a safe store of value. "It's a tiny thing that gets disproportionate attention," Dalio said. "It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange." While bitcoin has been touted as the future of currency, he said it's too unstable. And stablecoins, which have been billed as safer than bitcoin, are basically fiat currencies too, he added. Ideal coin: "If you created a coin that says 'OK this is buying power that I know I can save in and put my money in over a period of time and transact in,' then I think that would be a good coin," he said. "So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't ...
Read More
ISDA | Jan 26, 2023 The oft-repeated aphorism ‘not your keys, not your crypto’ suggests that only a party running an on-chain node and possessing the private key associated with a cryptocurrency holding can reliably be considered the owner. What defines the owner of an asset? And for a party that is not the direct owner, but holds an asset indirectly via an intermediary, what is the impact of an intermediary’s bankruptcy? These questions are generally settled in other financial markets, which have developed standards to protect indirectly-held customer assets by making them bankruptcy remote from the intermediary. The FTX collapse indicates that such norms are still evolving (or may not yet exist) in the cryptocurrency markets. When these issues are not well understood by market participants or the risks are not properly managed, unanticipated and significant loss of capital can emerge. The prospect of insolvency of a major market participant requires firms to consider how they manage counterparty credit risk, which intermediated or custodial structures are most appropriate, and whether the tools employed can be reliably enforced in a bankruptcy scenario. See: Goldman Sachs Report: Future of Digital Assets and Crypto Winter’s Discontent ISDA is producing two papers that ...
Read More
Bloomberg | Lizette Chapman | Feb 6, 2023 Figure is one of countless once-hot startups now suddenly forced to contend with an icy environment for venture capital, particularly in the world of crypto. Challenging times: Two years ago, when investors’ fintech frenzy was at its peak, Cagney raised $200 million for Figure. The company at the time was valued at $3.2 billion, gaining it entrance into a rarified club of multibillion-dollar startups. But recently, things have gotten tougher. In the last few months, several senior leaders have left Figure, including the president and chief financial officer; it scrapped an attempt to take its lending business public through a special purpose acquisition company; and executives slashed their targets on an ambitious fundraising effort. The company, which builds financial products on a blockchain, is also seeking to spin off some product lines as it navigates a dramatic industry downturn. See: Market Downturns are a Great Time to Build a Startup, or are they? The company is currently seeking to raise $100 million, according to people familiar with the matter who asked not to be identified because the discussions were private. That’s one-third the sum it initially planned. Figure is not in any serious deal talks at the moment, the people said, and the startup is likely ...
Read More
Bain & Company | Frankie Leung, Scully Cui, and Lei Zhang | Jan 19, 2023 In mainland China, the retail banking industry is shifting toward quality growth over quantity. Retail banking is on the rebound now—but in an entirely new set of market conditions. Today’s banks are combating stronger competition, tighter compliance controls, and headwinds from volatile macroeconomic conditions. Bain & Company surveyed 1,800 retail banking consumers in mainland China from August to September 2022. Mainland customers are happy with their primary financial institutions. Net Promoter Score percentages are strong and steadily increasing. In 2022, approximately 55% of retail banking customers in mainland China said they would recommend (or “promote”) their primary bank. See: FCA review finds evidence of growing competition in retail banking What Chinese customers want to take their digital banking experiences to the next level: Omnichannel: Mobile and online banking are the most frequently used channels among the retail banking consumers we surveyed. Consumers interact with their bank via mobile app about 15 times per quarter, which is five times more often than they visit a physical branch. Mobile banking also has the highest correlation to positive overall customer experience. Physical branch experience can convert customers into ...
Read More
The Byte | Noor Al-Sibai | Feb 3, 2023 The CEO behind the record-breaking ChatGPT has a bit of a strange background, the TL;DR of which being that he once admitted to being a doomsday prepper who believes that killer artificial intelligence or a lab-modified virus could bring about the end of days. Origins: Altman, who is also the president of the uber-influential Y Combinator startup incubator, is one of only OG OpenAI cofounders still standing. The company's decision to go from more of a research vehicle to a for-profit venture in 2019 was somewhat overshadowed by his fellow cofounder Elon Musk's decision to leave the firm — over some seemingly huge disagreements about its direction. General Intelligence AI: While Altman doesn't think we're that close to AIs gaining consciousness — a belief that's not quite shared by fellow OG OpenAI-er Ilya Sutskever — he did tell Forbes that creating AGI is "the thrust that drives all my actions" and, it seems, his raison d'etre for the firm. See: Billionaire investor Ray Dalio on capitalism’s crisis: The world is going to change ‘in shocking ways’ in the next five years Sam Altman: "I think capitalism is awesome. I love capitalism. Of ...
Read More
Guest Post | Feb 4, 2023 The Edtech industry has been booming for the last 2-3 years, gaining quite a prominence and helping billions of people worldwide. Education technology startups have been one of the educational industry's most influential and beneficial projects, revolutionizing education for good. Edtech projects are leading the education industry right now, with Edtech being 173% more googled in 2022 than in 2018. Teachoo Teachoo is an India-based Edtech project founded in 2014 and has been exploding lately in the market. Why is that? It is one of the best intelligent learning platforms offering many courses for English-speaking pupils worldwide. So what’s so exceptional about this project that separates it from all the others? Their content. Teachoo does not have overloaded content that overwhelms its students - instead, it's a highly organized project that ensures time-saving, holding great potential for learning efficiency. ELISON Have you ever heard of massive open online courses (MOOC)? ELISON not only empowers your career and provides legitimate certification, but it also provides 100% free courses worldwide. It has about 25 million learners globally and provides academic education, training, and classes for skill improvement and whatnot. ELISON is an excellent platform for people ...
Read More
FCA | Release | Feb 3, 2023 The Financial Conduct Authority (FCA) required firms to amend or remove 8,582 promotions during 2022 - 14 times more than 2021, a report published today shows. Social media remains a major focus for the regulator’s work in combatting misleading promotions. The FCA has worked closely with several Big Tech companies to change their advertising policies to only allow financial promotions that have been approved by FCA-authorised firms, but more needs to be done by tech companies to protect consumers. The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021. ‘Fin-fluencers’ have also been a growing concern for the regulator. Unauthorised individuals should not advise people on the merits of certain investments, as this will likely be subject to our regulations and it could lead to action being taken against them. The FCA has already acted against several social media influencers over the past year. In one case, the FCA found a director of a regulated firm using their personal profile to promote the advice of unauthorised traders ...
Read More
Guest Post | Feb 3, 2023 Technology advancements have allowed us to improve processes and cover previously impossible areas. For example, the latest technological advances in security have enabled our homes to remain safer daily, stay one step ahead and keep our home and loved ones safe. In this blog post, we will explore the latest tech in home security so you can know which of these innovations might be helpful for your home. Garage door security Improving garage door security is relatively simple and can be achieved through a few key steps: Upgrade your garage door with a smart opener for added convenience. With a smart opener, you can easily control and monitor the status of your garage door from your smartphone. This allows you to check if the door is open or closed and close it remotely when needed. Regular checks are recommended to maintain the proper functioning of the garage door. If any issues arise, a local garage doors professional can be consulted. Add remote access controls: Many smart garage door openers can add remote access controls, such as key fobs, which allow authorized individuals to open and close the garage door without a physical key. Install ...
Read More
Federal Judge Dismisses Unregistered Securities Class Action Suit Against Coinbase (Shares Jump 21%)
MarketWatch | Dean Seal | Feb 2, 2023 Shares of Coinbase Global Inc. rose 21% to $79.50 after a federal district judge dismissed a proposed class action accusing the crypto exchange of selling tokens that qualified as unregistered securities. The suit, filed in October 2021, alleged that nearly 80 of the digital assets traded on the Coinbase exchange fit the description of a security under federal law, and that Coinbase therefore violated the law by selling the tokens without proper registration. A New York federal judge ruled Thursday that the token buyers behind the suit have made contradictory allegations between their original complaint and a later amended complaint as to whether Coinbase actually held title to or sold the tokens, rather than just facilitate their trading on its exchange, in "an apparent attempt to evade dismissal." See: Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading The judge further found that the terms of Coinbase's user agreement, which state that only exchange users hold title over tokens they trade, "flatly contradict" the lawsuit's allegations. Finding that further amendments would be futile, the judge dismissed the case with prejudice. The dismissal marks a ...
Read More
CNBC | MacKenzie Sigalos and Rohan Goswami | Feb 6, 2023 Binance, the world’s largest cryptocurrency exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision. “We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson told CNBC. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.” Impact: Binance US, a unit of the company that’s regulated by the Treasury Department’s Financial Crimes Enforcement Network, said in a tweet that it’s not affected by the suspension. Thus the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars. Binance’s net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham. Binance said customers can still use other fiat currencies or payment methods to purchase crypto. For the small number affected, “we’ll have a new partner to announce for those users in ...
Read More
Read More
Business Insider | Brian Evans | Feb 2, 2023 Bridgewater Associates founder Ray Dalio warned Thursday of a looming currency crisis and that an inflation-linked cryptocurrency would be safer than bitcoin. Dalio on Bitcoin: In an interview with CNBC, he asserted that the largest cryptocurrency by market capitalization "has no relation to anything" and denounced opinions that bitcoin is a safe store of value. "It's a tiny thing that gets disproportionate attention," Dalio said. "It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange." While bitcoin has been touted as the future of currency, he said it's too unstable. And stablecoins, which have been billed as safer than bitcoin, are basically fiat currencies too, he added. Ideal coin: "If you created a coin that says 'OK this is buying power that I know I can save in and put my money in over a period of time and transact in,' then I think that would be a good coin," he said. "So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't ...
Read More
Read More
ISDA | Jan 26, 2023 The oft-repeated aphorism ‘not your keys, not your crypto’ suggests that only a party running an on-chain node and possessing the private key associated with a cryptocurrency holding can reliably be considered the owner. What defines the owner of an asset? And for a party that is not the direct owner, but holds an asset indirectly via an intermediary, what is the impact of an intermediary’s bankruptcy? These questions are generally settled in other financial markets, which have developed standards to protect indirectly-held customer assets by making them bankruptcy remote from the intermediary. The FTX collapse indicates that such norms are still evolving (or may not yet exist) in the cryptocurrency markets. When these issues are not well understood by market participants or the risks are not properly managed, unanticipated and significant loss of capital can emerge. The prospect of insolvency of a major market participant requires firms to consider how they manage counterparty credit risk, which intermediated or custodial structures are most appropriate, and whether the tools employed can be reliably enforced in a bankruptcy scenario. See: Goldman Sachs Report: Future of Digital Assets and Crypto Winter’s Discontent ISDA is producing two papers that ...
Read More
Read More
Bloomberg | Lizette Chapman | Feb 6, 2023 Figure is one of countless once-hot startups now suddenly forced to contend with an icy environment for venture capital, particularly in the world of crypto. Challenging times: Two years ago, when investors’ fintech frenzy was at its peak, Cagney raised $200 million for Figure. The company at the time was valued at $3.2 billion, gaining it entrance into a rarified club of multibillion-dollar startups. But recently, things have gotten tougher. In the last few months, several senior leaders have left Figure, including the president and chief financial officer; it scrapped an attempt to take its lending business public through a special purpose acquisition company; and executives slashed their targets on an ambitious fundraising effort. The company, which builds financial products on a blockchain, is also seeking to spin off some product lines as it navigates a dramatic industry downturn. See: Market Downturns are a Great Time to Build a Startup, or are they? The company is currently seeking to raise $100 million, according to people familiar with the matter who asked not to be identified because the discussions were private. That’s one-third the sum it initially planned. Figure is not in any serious deal talks at the moment, the people said, and the startup is likely ...
Read More
Read More
Bain & Company | Frankie Leung, Scully Cui, and Lei Zhang | Jan 19, 2023 In mainland China, the retail banking industry is shifting toward quality growth over quantity. Retail banking is on the rebound now—but in an entirely new set of market conditions. Today’s banks are combating stronger competition, tighter compliance controls, and headwinds from volatile macroeconomic conditions. Bain & Company surveyed 1,800 retail banking consumers in mainland China from August to September 2022. Mainland customers are happy with their primary financial institutions. Net Promoter Score percentages are strong and steadily increasing. In 2022, approximately 55% of retail banking customers in mainland China said they would recommend (or “promote”) their primary bank. See: FCA review finds evidence of growing competition in retail banking What Chinese customers want to take their digital banking experiences to the next level: Omnichannel: Mobile and online banking are the most frequently used channels among the retail banking consumers we surveyed. Consumers interact with their bank via mobile app about 15 times per quarter, which is five times more often than they visit a physical branch. Mobile banking also has the highest correlation to positive overall customer experience. Physical branch experience can convert customers into ...
Read More
Read More
The Byte | Noor Al-Sibai | Feb 3, 2023 The CEO behind the record-breaking ChatGPT has a bit of a strange background, the TL;DR of which being that he once admitted to being a doomsday prepper who believes that killer artificial intelligence or a lab-modified virus could bring about the end of days. Origins: Altman, who is also the president of the uber-influential Y Combinator startup incubator, is one of only OG OpenAI cofounders still standing. The company's decision to go from more of a research vehicle to a for-profit venture in 2019 was somewhat overshadowed by his fellow cofounder Elon Musk's decision to leave the firm — over some seemingly huge disagreements about its direction. General Intelligence AI: While Altman doesn't think we're that close to AIs gaining consciousness — a belief that's not quite shared by fellow OG OpenAI-er Ilya Sutskever — he did tell Forbes that creating AGI is "the thrust that drives all my actions" and, it seems, his raison d'etre for the firm. See: Billionaire investor Ray Dalio on capitalism’s crisis: The world is going to change ‘in shocking ways’ in the next five years Sam Altman: "I think capitalism is awesome. I love capitalism. Of ...
Read More
Read More
Guest Post | Feb 4, 2023 The Edtech industry has been booming for the last 2-3 years, gaining quite a prominence and helping billions of people worldwide. Education technology startups have been one of the educational industry's most influential and beneficial projects, revolutionizing education for good. Edtech projects are leading the education industry right now, with Edtech being 173% more googled in 2022 than in 2018. Teachoo Teachoo is an India-based Edtech project founded in 2014 and has been exploding lately in the market. Why is that? It is one of the best intelligent learning platforms offering many courses for English-speaking pupils worldwide. So what’s so exceptional about this project that separates it from all the others? Their content. Teachoo does not have overloaded content that overwhelms its students - instead, it's a highly organized project that ensures time-saving, holding great potential for learning efficiency. ELISON Have you ever heard of massive open online courses (MOOC)? ELISON not only empowers your career and provides legitimate certification, but it also provides 100% free courses worldwide. It has about 25 million learners globally and provides academic education, training, and classes for skill improvement and whatnot. ELISON is an excellent platform for people ...
Read More
Read More
FCA | Release | Feb 3, 2023 The Financial Conduct Authority (FCA) required firms to amend or remove 8,582 promotions during 2022 - 14 times more than 2021, a report published today shows. Social media remains a major focus for the regulator’s work in combatting misleading promotions. The FCA has worked closely with several Big Tech companies to change their advertising policies to only allow financial promotions that have been approved by FCA-authorised firms, but more needs to be done by tech companies to protect consumers. The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021. ‘Fin-fluencers’ have also been a growing concern for the regulator. Unauthorised individuals should not advise people on the merits of certain investments, as this will likely be subject to our regulations and it could lead to action being taken against them. The FCA has already acted against several social media influencers over the past year. In one case, the FCA found a director of a regulated firm using their personal profile to promote the advice of unauthorised traders ...
Read More
Read More
Guest Post | Feb 3, 2023 Technology advancements have allowed us to improve processes and cover previously impossible areas. For example, the latest technological advances in security have enabled our homes to remain safer daily, stay one step ahead and keep our home and loved ones safe. In this blog post, we will explore the latest tech in home security so you can know which of these innovations might be helpful for your home. Garage door security Improving garage door security is relatively simple and can be achieved through a few key steps: Upgrade your garage door with a smart opener for added convenience. With a smart opener, you can easily control and monitor the status of your garage door from your smartphone. This allows you to check if the door is open or closed and close it remotely when needed. Regular checks are recommended to maintain the proper functioning of the garage door. If any issues arise, a local garage doors professional can be consulted. Add remote access controls: Many smart garage door openers can add remote access controls, such as key fobs, which allow authorized individuals to open and close the garage door without a physical key. Install ...
Read More
Read More
Federal Judge Dismisses Unregistered Securities Class Action Suit Against Coinbase (Shares Jump 21%)
MarketWatch | Dean Seal | Feb 2, 2023 Shares of Coinbase Global Inc. rose 21% to $79.50 after a federal district judge dismissed a proposed class action accusing the crypto exchange of selling tokens that qualified as unregistered securities. The suit, filed in October 2021, alleged that nearly 80 of the digital assets traded on the Coinbase exchange fit the description of a security under federal law, and that Coinbase therefore violated the law by selling the tokens without proper registration. A New York federal judge ruled Thursday that the token buyers behind the suit have made contradictory allegations between their original complaint and a later amended complaint as to whether Coinbase actually held title to or sold the tokens, rather than just facilitate their trading on its exchange, in "an apparent attempt to evade dismissal." See: Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading The judge further found that the terms of Coinbase's user agreement, which state that only exchange users hold title over tokens they trade, "flatly contradict" the lawsuit's allegations. Finding that further amendments would be futile, the judge dismissed the case with prejudice. The dismissal marks a ...
Read More
Read More
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