dafuq, two rumors? auction bids at 30% above market, and china legalizes bitcoin?
People have already dismissed both rumors, but:
The "China" rumor comes from this interview with a Chinese lawyer, published
Feb/27:
https://letstalkbitcoin.com/blog/post/a-chinese-lawyers-thoughts-on-crypto
Quote
What is the legal landscape like in China regarding DACs and cryptocurrencies?
The legal landscape is still vague in China, just like in any other jurisdiction. However, China’s regulatory environment in this area is generally much more relaxed than that of the US. In my view, China is one of the most suitable jurisdictions around the world where entrepreneurs can experiment on many pioneering business models in relation to DACs and cryptocurrencies, while most of them are clearly or implicitly banned in the US. The government in China is generally tolerant, so long as your business is not designed as a fraudulent scheme. Among others, Bitcoin and like cryptocurrencies have been officially recognized as lawful virtual commodities and are therefore OK to trade, which explains why there are so many exchanges in China where spots and even futures and other derivatives are traded. The only restriction imposed here is to block financial institutions and third-party payment processors from aiding cryptocurrency businesses (yet there are still many loopholes in reality to circumvent or even penetrate that restriction). And for cryptocoin crowdfunding or crowd sales, it is even restriction free in China. That means the initiators usually don’t have to worry about facing the charge of “illegal securities issuance,” as they are likely to suffer in the US.
The legal landscape is still vague in China, just like in any other jurisdiction. However, China’s regulatory environment in this area is generally much more relaxed than that of the US. In my view, China is one of the most suitable jurisdictions around the world where entrepreneurs can experiment on many pioneering business models in relation to DACs and cryptocurrencies, while most of them are clearly or implicitly banned in the US. The government in China is generally tolerant, so long as your business is not designed as a fraudulent scheme. Among others, Bitcoin and like cryptocurrencies have been officially recognized as lawful virtual commodities and are therefore OK to trade, which explains why there are so many exchanges in China where spots and even futures and other derivatives are traded. The only restriction imposed here is to block financial institutions and third-party payment processors from aiding cryptocurrency businesses (yet there are still many loopholes in reality to circumvent or even penetrate that restriction). And for cryptocoin crowdfunding or crowd sales, it is even restriction free in China. That means the initiators usually don’t have to worry about facing the charge of “illegal securities issuance,” as they are likely to suffer in the US.
He is just describing the situation that has existed and been widely known since the PBoC decrees of Jan/2014, and was confirmed and reaffirmed many times since.
The "auction bids at 30% above market" seems to have originated from this tweet. Subsequent tweets of that user suggest that it may have been just a joke or misunderstanding. The USMS does not reveal the winning prices, and AFAIK no winner has yet volunteered that information. (The USMS informed that there were 14 distinct bidders this time against 11 of the second auction; perhaps that was the "30%" increase.)
On the contrary, Tim Draper (who did not bid) said that probably auctions are bargain buys. That may be a hint that he got his coins below market on the two previous occasions.
At the first auction, Tim Draper collected ~30'000 BTC that he said would be used to "provide liquidity for" (i.e. "sell at") the Vaurum fund/exchange that he has invested in. At the second auction he got 2000 BTC that (IIRC) he planned to split among various bitcoin startups that would be incubated by Boost, his son's venture.
. Tomorrow will look for another long entry. GL!
