Nasdaq Listed "Blockchain" Companies Faced Legal Issues

Long Blockchain Corp and Riot Blockchain Corp. are facing legal issues at the moment
26 February 2018   438

Adding the word "blockchain" to its name turned out to be a very profitable practice for many companies traded on stock exchanges last year. As it turned out, this medal has the opposite side. Bitcoin. com reports about it.

A class-action lawsuit against Riot Blockchain,Inc. (NASDAQ: RIOT) filed by investors from Florida. They argue that the company, its management and one of the largest shareholders violated the requirements of the Securities Exchange Act of 1934.

Until October 2017, the company was named Bioptix, Inc. and specialized in the development of diagnostic tools for veterinarians. On October 4, Bioptix announced that it will be called Riot Blockchain and will be engaged in investing in blockchain. The plaintiffs assume that the company disseminated false information and did not conduct real activities, while the prices of its shares continued to grow artificially.

In particular, Riot Blockchain did not say that it changes its name to attract investors and to link its company to the growth of the crypto market without having any significant presence on it and thus hoping to help Barry Honig, its main shareholder, later to sell his shares at artificially high prices.

Long Blockchain Corp. (NASDAQ: LBCC) in turn received a notice from Nasdaq, which says that the stock exchange decided to conduct delisting of the company's shares. Until June 2017 the company was called Long Island Iced Tea. The day after re-branding, its shares rose by 432%.

The company can appeal against Nasdaq's decision if it meets the requirements of the exchange, according to which the capitalization of its shares in the market should not fall below $ 35 million within 10 consecutive working days.

OKEx to Launch OKChain Based Decetralized Exchange

Great role in the upcoming exchange will be played by OKB coin, which will be trasfered to OKChain as soon as its development finished
22 March 2019   122

OKEx cryptocurrency exchange will launch a decentralized trading platform on its own blockchain.

Currently, the OKChain blockchain is in the final stages of development, and its test network may be launched as early as June 2019. When the OKEx blockchain becomes stable enough, it will transfer OKB to it, which will then perform the function of the native OKChain token and be used to pay commissions, as well as in its own decentralized network applications.

The primary purpose of OKChain is to launch the OKDEx decentralized exchange, where the OKB token will be used to participate in presales. In addition, project teams will use OKB tokens to pay the service fee to the super nodes of the network.

While the total volume of OKB emissions is 1 billion, 300 million tokens are in circulation today, and 700 million remain blocked. Of this number, 300 million OKB will be distributed to users through the loyalty program, and 400 million belong to the OK Blockchain Foundation and the exchange team. However, for a more efficient formation of the OKB ecosystem, the blocking period of these 700 million tokens will be extended from 2020 to 2022, writes OKEx.

In addition, OKB will be the only token to be accepted during the initial exchange offerings (IEO) on the OK Jumpstart platform, announced earlier this month. According to the company, it is currently negotiating with various projects and will soon announce the launch of the first IEO on OK Jumpstart, for which investors will be admitted who have passed personal verification and have OKB tokens in their accounts.