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The German Federal Financial Supervisory Authority (BaFin) has issued a cease and desist order to Karatbit Foundation to immediately stop unauthorized business in Germany. 

BaFin alleges that Karatbit Foundation is issuing the KaratGoldCoin (KBC) without the necessary license, according to a Nov. 11 announcement.

Karatbit describes itself as a provider of a blockchain-based payment system that enables users to conduct transactions with gold, as well as trade gold with cryptocurrencies. The company claims that over 500,000 acceptance points around the world and ten crypto exchanges support trading of gold and gold products for KBC.

Absence of the necessary licence and launched investigations

In the announcement, BaFin said that Karatbit conducted business in Germany without the necessary license. However, the regulator pointed out that although the order was effective immediately, it may still be subject to judicial review.

As The Guardian reported on Nov. 13, the public prosecutor in Stuttgart had also initiated investigations into the company’s activities. In response to the allegations, Karatbars told the Guardian that no investigations into KBC had begun and ensured that “no customer or partner has ever incurred losses due to Karatbars and its products.”

Karatbars further argued that those German customers holding KBC received it as “only a free bonus gift that came with other Karatbars products,” and that BaFin’s ruling was based on a fake Karatbars website.

Contradicting share in a gold mine

To guarantee the stability of its tokens, Karatbars claims that it owns a share in a gold mine located in Madagascar that purportedly contains 900 million euros ($990 million) worth of the precious metal. Moreover, the company’s founder, Harald Seiz, said that the company had secured $100 million through sales of KBC.

In contradictory figures, the company specifically asserted in its white paper that “the gold mine in Madagascar having 900 billion euros was bought.” Seiz also reportedly failed to prove his ownership of a stake in the gold mine.

Moreover, Karatbars used former football stars Lothar Mattäus, Roberto Carlos and Patrick Kluivert’s images without their permission to promote its products. Kluivert and Matthäus denied their relation with the project.

Cointelegraph By Ana Alexandre , 2019-11-14 01:27:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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