The Dream that Turns into a Nightmare

Jacob | @ |

Kerrisdale

Blockchain technology has been the face of the technological era, bringing with it a new wave of innovation and positive disruption in a number of industries. More importantly, the cryptocurrency space has been hugely impacted, with over a thousand cryptocurrency platforms created to solve several problems plaguing the world.

However, cryptocurrencies have witnessed a myriad of regulations and reform over the past year—or thereabouts. One of this moves is the regulation of cryptocurrency lending and all crypto lending coins being declared illegal.

After Bitconnect got banned from federal law, nobody ever believed that a lending coin could make it to the place Bitconnect made it to. That was soon proved wrong when some of the best core developers in the community came together and presented their huge project Arbitracoin, at the beginning of 2018.

However, it seems the timing (of releasing such a project at this time) was totally wrong. A lot of crypto investors became very skeptical after Bitconnect went down, and lending coins became a subject of intense scrutiny. To make matters worse, during the ICO of Arbitracoin, Facebook began declining any form of cryptocurrency advertising. They made a statement on the 30th of January that said the following:

“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, and cryptocurrency.”

Soon afterward, Twitter, Linkedin, and other sites started to follow suit. This made it near impossible for any future cryptocurrency to make it off the ground.

Also there’s a rumour going round the crypto community that some of the core developers of Arbitracoin have been declared wanted and are on run from the government. Wallets of Arbitracoin participants have been deactivated and because of that, they haven’t been able to withdraw their profits. This is exactly why some features are missing on the project project’s website, like the transparent trading illustration.

At the beginning, Arbitracoin seemed to be a well conceived concept, because the core developers already had a lot of experience with cryptocurrency lending platforms, having worked on a number of those projects (Bitconnect and co.), but now it looks like the time for decentralized investment/lending projects is over. However, it should be noted that lending was never truly legal.

The intention was good, but it was extremely impossible to execute. To the investors and the community as a whole, we are sorry about this unfortunate event.

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Jacob

Jacob Maslow is a writer and marketing specialist who began his career as a payroll manager. The same affinity for numbers that originally led him to an early career in accounting now comes in handy when it comes to understanding and working with marketing analytics. A native of New York, Maslow is now based in the Middle East, where he lives with his wife and five children and provides high-quality services to clients in a variety of industries, including the legal, medical and financial sectors.

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