A U.S. state has issued a cease and desist order to a company purportedly engaged in cryptocurrency mining. This order follows a temporary cease and desist order to the company two months ago which it did not respond to.
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Cease and Desist Order
The U.S. State of North Carolina issued a to Power Mining Pool (PMP) last week. After some investigation, the state’s Securities Division declared:
The Securities Division found that PMP is violating the Securities Act by: a. offering unregistered securities in the form of ‘mining pool shares;’ b. offering securities while it is not registered to do so; and c. making material misstatements when offering securities.
The order mandates the company and any person, employee, officer, director, entity, or independent contractor under its direction or control to permanently cease and desist from selling securities in the state until the security is registered or exempt.
They also must not act as a securities dealer, salesman, or agent unless registered with the state. Furthermore, they must not engage in fraud in connection with the offer or sale of any security, or violate other provisions and rules of the state.
This order follows a temporary cease and desist order issued by the same division on March 2. However, the company has neither responded to the order nor requested a hearing. Instead, its website, which is its principal place of business, went offline on March 6, the order revealed.
Questionable Operations
The State of North Carolina described PMP as an online business that is unregistered in any jurisdiction, without a physical place of business and “The individuals who managed PMP are not identified.”
The company represents that it owns and operates mining rigs capable of mining seven different cryptocurrencies 24 hours a day, 7 days a week. It also represents that these rigs track the profitability of each of the seven cryptos and automatically “switch resources away from less profitable coins.”
PMP also offers mining pool shares to investors to mine on their behalf. “Investors who purchase mining pool shares must first purchase bitcoin with their fiat currency, such as the U.S. Dollar or Euro,” the order detailed. “Next, PMP directs investors to deposit their bitcoin into PMP’s bitcoin wallet in order to set up an account on the PMP website.” The company then claims to mine cryptocurrencies on investors’ behalf and purported to pay investors the fiat value of the coins mined.
Investors can also “trade the mined coins for bitcoin.” PMP claims that it will pay the investors “on any profits we make in the trading pool” every three hours.
The Secretary of State of North Carolina wrote:
The mining pool shares are securities and are not registered with the Administrator…PMP willfully fails to disclose material facts when offering the mining pool shares.
What do you think of North Carolina shutting down Power Mining Pool? Let us know in the comments section below.
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CombiCoin Update
The following topics will be addressed in this weekly.
CombiCoin performance week 17
Snapshot & profit share
Market overview
CombiCoin performance week 17
Weekly growth
Value on 20-04-2018 – 08:00 CET – $ 23,54
Value on 27-04-2018 – 08:00 CET – $ 27,28
Weekly growth 15,89%
All time growth: 215,00%
Monthly growth: 10,76%
Week high: $ 28,53
Week low: $ 23,35
Snapshot & profit share
Next week will pay out profit shares, the snapshot for will be taken next Tuesday (May 1st, 2018).
The profit share of this month is currently $ 0.05 per TRIA token
Depending on the results of the last days of the month, this could increase.
Market overview
Last week the rebound in the cryptocurrency market prolonged where the overall market cap increased by 26% up to $435 billion last night. CombiCoin hit its peak at $28,53 that moment. Then the market experienced a fallback bringing us back to $388 billion.
With the breakout lasting for around 14 days so far, many are saying that the bull market is back. The cryptocurrency market has been largely trend-driven and reflexive, which means that the more people believe in something, the more likely that it will happen.
It is kind of interesting when you consider how the renewed optimism all began with a short squeeze just two weeks ago. This shows that sentiment in the cryptocurrency market shifts quickly and dramatically. Investors need to pay very close attention if they want to time the market well. Fortunately, is reflecting the overall market and as shown in the figure below CombiCoin is still outperforming overall cryptomarket and leaves bitcoin far behind.
The above chart shows the growth of CombiCoin compared to the growth of bitcoin and the overall cryptocurrency market.
