RenrenBit to Report on $600k Net Income in 2019

RenrenBit, founded by Binance investor, is a broker between crypto lenders and borrowers and takes 15% of the profit on each loan
20 January 2020   504

RenrenBit, a China-based p2p cryptocurrency lending platform, reported financial results for 2019, including $ 600,000 in net income with $ 2.3 million in profit. It is reported by CoinDesk.

The company was founded in November 2018 by Chinese businessman Zhao Dong, also known as one of the investors in the Bitfinex and Binance cryptocurrency exchanges.

The RenrenBit financial performance report, which has not yet been audited, was published on Monday, January 20, and is part of the company's financial disclosure obligation, which was adopted after the end of the token sale in 2019, following which it raised $ 21 million.

According to the RenrenBit balance sheet, as of December 31, 2019, there were about $ 168 million of client funds in its wallets, which is about 70% of all the company's obligations.

Despite the fact that these figures may not seem the largest, the publication notes that the quarterly growth rate of the company as a whole was consistent with the general positive mood in the cryptocurrency market last year.

So, in the fourth quarter, RenrenBit profit amounted to $ 1.4 million, which was almost four times more than in the first quarter. Revenues for the same period amounted to more than $ 640,000, while in the first three months of the year the company suffered losses of $ 175,000.

RenrenBit acts as a broker between cryptocurrency lenders and borrowers who want to get a loan in Chinese yuan or cryptocurrencies secured by other digital currencies, and takes 15% of the profit on each loan for its services. Also, the company, with a staff of 35 people, offers loans from equity. As of December 31, 2019, the total amount of such open loans was about $ 64 million.

Court to Ban TON Tokens Release

U.S. District Judge P. Kevin Castel, of the Southern District of New York issued a temporary restiction, therefore supporing the SEC
25 March 2020   266

The American court issued an order to the developer of the Telegram messenger, according to which he should refrain from the distribution of tokens of the TON blockchain project planned for next month.

According to CoinDesk, on March 24, the District Judge of the Southern District of New York, Kevin Castel, issued a temporary injunction, recognizing the SEC's arguments regarding the sale of unregistered securities by the company as reasonable.

The Court finds that the SEC has shown a substantial likelihood of success in proving that the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are part of a larger scheme to distribute those Grams into a secondary public market, which would be supported by Telegram’s ongoing efforts.


Kevin Castel

U.S. District Judge

According to the judge, this feature does not allow considering the Telegram offer as subject to exceptional conditions. He also noted that Telegram structured its project in such a way as to attract “the maximum number of primary buyers” against the background of the expectation of maximum profit at the time of launch.

Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement. 


Kevin Castel

U.S. District Judge

Conducting an analysis from the standpoint of the Howey test, the judge stated that buyers expected to profit from participating in the campaign. Moreover, although Telegram may argue that it will not become a guiding force in the further development of TON, “in fact,” it will be precisely this.

The judge agreed to distinguish between non-existent Gram tokens and securities purchased by TON investors, but refused to support Telegram's argument that Gram would be a commodity.

The Court rejects Telegram’s characterization of the purported security in this case. While helpful as a shorthand reference, the security in this case is not simply the Gram, which is little more than [an] alphanumeric cryptographic sequence.


Kevin Castel

U.S. District Judge

This is not the final decision, but it can serve as a powerful indicator of what position the court will adhere to further.