TheDinarian
News • Business • Investing & Finance
? The Dinarian on Locals brings you the latest in news, interviews, in-depth conversations, and stories from across the blockchain and global communities—within and beyond cryptocurrency ?. Experts delve into how blockchain technology is reshaping industries, enhancing business networks ?, transforming transaction workflows, and advancing distributed ledger systems ??. We also explore intriguing topics that may venture into the realm of conspiracies—and so much more!
Interested? Want to learn more about the community?
The Investors Guide To Navigating Impermanent Loss

(DINARIAN NOTE: This is an important one to know)

Impermanent loss is the opportunity cost a liquidity provider faces when the net price difference between assets changes from the time they were first deposited. It is considered impermanent because liquidity providers can recover their loss if the token pair returns to the initial exchange rate. — Amberdata

Investors often claim that you can’t see the full damage of impermanent loss until funds are withdrawn. According to the experts at Amberdata though, this isn’t the case. All data is open and measurable. Anyone can provide an estimate. The real challenge is finding a precise calculation and in analyzing the risk of impermanent loss versus the reward of transaction fees.

The complexity of data sources makes this analysis difficult to account for all investment strategies. But a review of the basics can provide the tools necessary for such a report.

We sat down with Amberdata, a leader in cryptoeconomic data, to better understand impermanent loss (IL) and how to navigate it. This guide will offer context to IL by explaining the technology behind automated market maker (AMM) liquidity pools. It will explain why it happens and why it is difficult to assess. And it will detail the data resources needed to detect clues before loss occurs.

What is impermanent loss?

Impermanent loss happens when the price of a token changes relative to its pair, between the time you deposit it in a liquidity pool and when you withdraw it.

Think of it as primarily an unrealized opportunity cost. It’s not a real loss, because the loss is measured against the value your investment would have been if the tokens were held outside of the liquidity pool. And it’s unrealized because token pairs can return to the same ratio before liquidity is withdrawn.

Where does it occur?

Impermanent loss can occur in any decentralized exchange (DEX) that uses liquidity providers to fund pools segregated by trading pairs. But before we explain the mathematical phenomenon of the loss, we need to explain the purpose behind this new type of exchange and how it works.

⚈Decentralized Exchanges

The purpose

DEXs were created for people to swap different tokens without a trusted third party. Unlike a centralized exchange (CEX), assets remain in your wallet and the exchange never has custody of them. They use two blockchain-based innovations to maintain decentralization: automated market maker algorithms and liquidity pools.

Automated Market Maker Algorithms
An automated market maker algorithm is what sets the exchange rates for specific asset pairs within a DEX.

The traditional CEXs facilitate trades through an order book. Exchange rates are set when buyers create demand and sellers offer supply. The order book matches the price a buyer is willing to pay with the price a seller is willing to accept.

In contrast to setting prices to match buy and sell orders, AMM algorithms are programmed to automatically adjust exchange rates to keep the supply of paired tokens balanced within a pool.

Liquidity Pools

Liquidity pools are smart contract enforced deposits of two tokens needed to enable swaps on a DEX. These pairs are usually set at a 50/50 ratio (but there are also uneven liquidity pools).

How they work

Imagine that you are a brand new exchange looking to open a single pool for BTC and ETH. Before anyone is able to swap BTC for ETH or vice versa, you need to attract liquidity providers to the pool.

The liquidity provider

Exchanges do this by first charging a fee for every swap and then sharing those fees as rewards with all liquidity providers in the pool. For example, if you provide 1% of the liquidity in a pool, you’ll receive 1% of the fees for that pool. Understanding the fee structure is critical to assessing the risk vs reward of adding liquidity. Because ultimately, the rewards from fees could more than offset the risk of impermanent loss.

In the ETH/BTC pool, a liquidity provider would need to include both tokens in their deposit. Most exchanges require a 1:1 ratio. So if a liquidity provider deposited 2 BTC and 1 BTC = 5 ETH, then you would need to match your BTC with 10 ETH. Once funds are deposited, you are given LP tokens as a representation of your percentage of the combined value of both tokens in the pool. LP tokens earn rewards from transaction fees and can be used to farm yield outside of the protocol.

The trader

Now that you have attracted enough liquidity providers, traders can start swapping tokens. But unlike CEXs, traders can’t toggle between their preferred token or currency in a single pool. Instead, they are required to swap one token for the other. So everytime BTC is withdrawn, the equivalent in exchange rate value is added in ETH — and vice versa.

How AMMs price tokens and balance the pool

At a pool’s onset, AMMs use market rates to set prices and an equal balance in value between the supply of both tokens. So if 1 BTC = 5 ETH, total supply in the pool will reflect that ratio. As users swap tokens, the AMM automatically adjusts prices in order to keep a balanced ratio.

For example, say that there was initially 100 BTC and 500 ETH in the pool. The current price of BTC would therefore be 5 ETH. If you were to take 1 BTC for 5 ETH, the total supply would be 99 BTC and 505 ETH. This would change the price of BTC from 5 ETH to about 5.1 ETH.

But say market-wide, the price of BTC is still 5 ETH. Arbitrage traders would then take that opportunity to buy BTC at a discount and sell it for ETH in the liquidity pool. This arbitrage would continue until the price falls back to market rates.

What causes impermanent loss?
Unequal price changes
The ultimate cause of impermanent loss is unequal price changes. Though, it is important to remember that your return is calculated after collecting fees. So even if unequal price fluctuations change the ratio of tokens in a pool, it may not be considered a complete loss if rewards make up the difference.

For example, let’s say an ETH/BTC pool is programmed to keep the value of both baskets set at a 1:1 ratio. Meaning, the value of all BTC should be the same as all ETH. At the time of your deposit, 1 BTC equals 10 ETH across most other exchanges, so you deposit 4 BTC and 40 ETH.

At the time of depositing the tokens, the size of the pool was 20 BTC and 200 ETH, so your total share of liquidity is 20%.

A month later, ETH doubled in value while BTC’s price stayed the same. But the value of both token baskets in the pool don’t yet reflect the ETH market-wide price of .2 BTC. So arbitrage traders rush in to buy ETH at the discount until the pool ratio and token prices match the market rate.

So once the pool supply reaches 20 BTC and 100 ETH, your 20% deposit will be worth 4 BTC and 20 ETH. That is a 20 ETH price difference from the initial 40 ETH deposit, resulting in an impermanent loss of 20 ETH. But it just so happened that transaction fees were extraordinarily high, providing an additional 10 ETH to your share of the pool. In this case, the loss on your return would only be 10 ETH at market value. It is impermanent because the supply of tokens in the pool can return to a 1 BTC to 10 ETH ratio in the future. The loss becomes permanent once funds are withdrawn from the pool. But if a liquidity provider gains enough exposure, rewards from transaction fees can potentially make up for the impermanent loss.

Is impermanent loss actually difficult to spot?
The reason many find it difficult to spot impermanent loss isn’t because it is an inherent mystery – it is a calculable math problem. The team at Amberdata explained that due to its complexity, most resources only provide estimates.

Say that you use your LP tokens in a yield farming endeavor that generates rewards on another protocol. Estimates on the exchange can’t account for those rewards. So even if it is showing impermanent loss, it could be that your yield farming endeavor makes back the loss.

A full assessment requires multiple data points, but if you have a clear view of what’s needed, that calculation can be precise and provide actionable investing data.

Plus, IL is different for everyone because portfolios have a different mix of tokens pairs. People also don’t deposit and withdraw at the same times or prices.

To calculate PnL for a liquidity position, you need data on:

⚈Each token’s price at deposit
⚈The amount of each token deposited
⚈Date of deposit
⚈Rate of reward for the liquidity pool
⚈Estimated price of each token at withdrawal
⚈Date of withdrawal
⚈LP token yield farming strategies

Because there are so many variables in calculating the difference between projected gains from holding tokens versus LP fees, many struggle to make a useful conclusion about whether to enter or exit a liquidity pool.

As an added complication, the risk and reward is different for every token pair depending on each one’s volatility. The more diverse the portfolio, the more difficult this becomes.

How to calculate impermanent loss

There are detailed mathematical explanations for how to calculate IL, but in brief, a formula can be used. IL increases the more an asset’s price changes relative to its pair. This is plotted on a graph.

In this very simplified example, you can see that IL happens whether prices go up or down. But the loss is much greater as a token’s price goes down. This causes many liquidity providers to look for token pairs that are likely to appreciate at a similar rate over time.

Can you avoid impermanent loss?

Since impermanent loss is triggered by unequal prices changes, the best way to avoid it is by avoiding volatile token pairs. But Amberdata stresses that there are always a wide array of investment choices in a cost-benefit analysis. For example, simply avoiding IL may not make sense when you measure a pool’s IL costs vs transaction fee rewards. The most informed decision evaluates the potential return in relation to other pools and opportunities. This comprehensive approach helps the liquidity provider find alpha.

In our conversation, Amberdata said that they offer their clients comprehensive insights across decentralized finance, and can quantify historical performance in context to other liquidity pools and investment strategies. They provide the data needed for a full risk/reward assessment that ultimately informs liquidity providers in their search for alpha.

One of the most useful tools for providing liquidity is Amberdata’s impermanent loss endpoint. With it, liquidity providers can get the exact data needed to evaluate IL risk for token pairs in specific liquidity pools on different DEXs.

Why comprehensive data is important

Amberdata said that their endpoint tools don’t take shortcuts when it comes to calculating impermanent loss. Their application collects liquidity pool data from across exchanges and tracks activity to get accurate, customized calculations.

For example, many IL calculations do not account for the mints and burns that a liquidity provider may make in a single day. Minting refers to the LP tokens that are created when funds are deposited. Those tokens are then burned when funds are withdrawn. Liquidity providers will often try to time minting and burning to avoid volatile price swings in a pool. If their IL estimate is only a 24 hour snapshot of what impermanent loss would be from the start to the close of the day, then they will not be able to measure the impact of their liquidity positions. Amberdata takes those intraday mints and burns into consideration when calculating IL.

While the precision of an IL calculation is critical, it doesn’t provide the full story. Even if a liquidity provider is able to avoid IL through savvy burning and minting practices, it doesn’t mean that they maximized return.

Effective back-testing of liquidity provider strategies requires comprehensive data points that detail the potential transaction fee rewards when an LP is in and out of a position. Amberdata said that they built their services so that liquidity providers could use this comprehensive approach to put their best strategies forward.

https://blockworks.co/the-investors-guide-to-navigating-impermanent-loss/

post photo preview
Interested? Want to learn more about the community?
What else you may like…
Videos
Podcasts
Posts
Articles
Thetas Latest Alphacrypto Report 💥
00:00:57
XRP Crushes All Crypto Polls & Bitcoin Maxi Calls Ripple And Stellar Scams
00:15:30
👀 A Top Cancer Expert Wars Of A “Whirlwind Of Cancers.” 👀

Piers Morgan, once a strong proponent of mRNA vaccines, now claims a top cancer expert warned him that Pfizer and Moderna shots have triggered a “whirlwind of cancers.”

00:00:31
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading
Countries Shift Strategies, Sell Treasury Bonds

Recent data from the U.S. Treasury reveals that China, Japan, and the United Kingdom collectively offloaded $81 billion in Treasury bonds in December. This significant reduction in holdings raises questions about the implications for the U.S. fiscal deficit and increasing borrowing costs.

● What Do the Numbers Say About U.S. Treasury Bonds?

In a noteworthy move, China reduced its Treasury bond portfolio by $9.6 billion, marking a record low of $759 billion—the lowest since 2009. Conversely, Japan enhanced its holdings to $1.0598 trillion by selling $27.3 billion in bonds. The United Kingdom topped the list in divestments, decreasing its portfolio by $44.1 billion to $722.7 billion.

● How is China Diversifying Its Assets?

Starting in November, China began buying gold again, acquiring around ten tons in December alone, resulting in a total of 2,280 tons by the end of the year. This strategy reflects an effort to diversify away from U.S. assets.

Currently, the yield on 10-year U.S. Treasury bonds ...

XRP Price Today: How $2.50 Level Could Decide Its Next Move

Table of Contents:

◇ XRP Technical Analysis and Upcoming Levels

◇ Current Price Momentum

$21.50 Million Worth XRP Outflow
Following the Bybit hack, sentiment across the crypto market has shifted completely toward a bearish phase, weakening assets. Amid this, XRP, the native token of Ripple Labs, has once again neared a crucial support level from the ascending trendline, which it has been testing since the beginning of February 2025.

Considering the current market sentiment and XRP's outlook, the token appears to have absorbed all the bearish pressure and is now recovering.

● XRP Technical Analysis and Upcoming Levels

According to expert technical analysis, as the XRP price reached the trendline support of $2.50 level a significant buying pressure was observed resulting in the formation of a bullish candlestick pattern. Besides this, the recent price drop has not affected XRP’s past ascending triangle price action pattern which it has formed.

Based on recent price action, if XRP holds above the ...

🪙 Jaime Carrasco | Golds Comeback, Silvers Power & The US Debt Reset 🪙

Canadian metals maven Jaime Carrasco joins Denis to deliver a masterclass in decoding the future of investing through the lens of history.

From buying Bitcoin at $5 to why gold isn’t just a commodity—it’s the ultimate form of money—Carrasco lays out the case for how Trump could use precious metals to reshape the financial system.

He dives into the silver supply crunch, taps into how Mexico could flip the script on global trade, and questions whether Trump is a modern-day Roosevelt with plans to reset the U.S. debt clock.

Discover why chasing quick returns could be the biggest mistake of younger generations and why if you don’t own gold, you don’t know history or economics.

post photo preview
The Dawn of DeFi: The Hidden War for a Decentralized Future
👉 DON'T FADE THIS ARTICLE~ Crypto Michael AKA "The Dinarian"

The below article is NOT financial advice, it is being broadcast for entertainment purposes only. You should DO YOUR OWN RESEARCH and NEVER invest any more than you are willing to lose. On that note, THIS ARTICLE AND THE UNDERLYING ASSET DISCUSSED COULD CHANGE YOUR LIFE FOR THE BETTER FOREVER! You SHOULD pay close attention as this MAY BE THE MOST IMPORTANT article you could ever have read, unless you were fortunate enough to read the Bitcoin whitepaper and had invested in it back in 2008. The asset I am about to present to you, COULD EASILY FLIP BITCOIN! ESPECIALLY WITH TODAYS ADMINISTRATION IN PLACE!

~ Namasté 🙏 Crypto Michael AKA "The Dinarian"

Attempted Theft of the World's Most Valuable Property, SEC Lawfare & The ETHgate Scandal

It is widely accepted that the media often spreads misinformation and hides any truth that challenge the establishments narratives. Well, this is one of those hidden truths...
 
Loans without Banks, Trades without Exchanges, Contracts without Lawyers. Peer to Peer Capital Markets disrupts traditional finance by removing middlemen and counter-party risk, enabling you to become your own bank by holding the keys to it all in your own privately held digital wallet.
 
To what lengths do you think the establishment would go to defend their control of the financial system? A system seemingly ripe with market manipulation, naked shorts, money laundering and regulatory capture.

The Myth of Open Source

For context, in the realm of open source, major corporations can engage in Intellectual Property theft by using open source projects to gain insights, technology, or legal protections without fully reciprocating to the community. Companies might contribute code to an open source project, only to later use that same code in commercial products, extending it with enhancements, essentially using open source as a low-cost R&D resource. Patents are crucial here, serving as a defense mechanism. Although open-source licenses cover copyrights, they don't extend to patents, meaning that companies holding patents can enforce legal protections against unauthorized commercial use, ensuring that any commercial application of their patented technology within open-source software requires proper licensing or recognition. This protection has historically led to the hyper-growth of industries like mobile phones and the internet, where patented technologies could be safely shared and built upon, promoting innovation and market expansion.
 

Validating Inventorship

In fields such as technology, pharmaceuticals, and manufacturing, patents are vital for safeguarding new inventions, with Nikola Tesla's extensive patent portfolio serving as a testament to his contributions to science.
 
However, Tesla's revolutionary inventions, like the Wardenclyffe Tower which aimed at providing free wireless energy, faced fierce opposition due to their potential to disrupt established control over energy markets. Financially sabotaged by investors like J.P. Morgan, legally challenged through "the war of currents" by Thomas Edison's promotion of the less efficient Direct Current system, and undermined by media smear campaigns, Tesla's work was systematically suppressed. After his death, the FBI's seizure of his documents further suggests efforts to control or conceal his ideas that could disrupt centralized energy distribution, illustrating how innovation can be stifled to maintain existing power structures.
 
Could this type of suppression still be happening today?
 

The Genesis of Decentralized Finance

Reggie Middleton first introduced Distributed Finance what would later become known as Decentralized Finance (DeFi), in 2013 when he invented and patented technologies under the title "Devices, systems, and methods for facilitating low trust and zero trust value transfers." This included groundbreaking concepts like programmable Smart Contracts, Swaps, Tokenized Assets, NFTs, Stable Coins, Digital Wallets, and even underpin Central Bank Digital Currencies (CBDCs).
 
 
Called by many as "The Most Valuable Property in the World", his patents US11196566B2, US11895246B2, JP6813477B2, JP7204231B2, JP7533974B2, & JP7533983B2 have been cited over 138 times by major financial institutions, underscoring their foundational role in the blockchain industry.
 

His patents cover:

  • Trustless Peer-to-Peer Value Transfers: Systems for enabling decentralized and secure value transfers between parties without the need for intermediaries. Applicable to cryptocurrency transactions, DeFi platforms, and digital payment systems.
  • Decentralized Financial Systems (DeFi): Methods and devices that facilitate decentralized trading, lending, borrowing, and yield generation. Impacting decentralized exchanges (DEXs) like Uniswap, SushiSwap, and similar platforms.
  • Smart Contracts: Implementation of self-executing contracts on blockchain networks, used to automate agreements and enforce conditions without intermediaries. Essential for platforms such as Ethereum, Cardano, and other Layer-1 and Layer-2 blockchain protocols.
  • Tokenized Asset Trading: Methods for creating, transferring, and trading tokenized assets, including cryptocurrencies, non-fungible tokens (NFTs), and digital securities. Platforms like OpenSea, Rarible, and asset tokenization platforms may fall within the scope.
  • Cryptographic Security and Wallet Systems: Systems for securing digital assets using cryptographic methods, including cold storage, multi-signature wallets, and multi-party computation (MPC). Potential overlaps with services offered by companies like Coinbase, Kraken, Gemini, and institutional custody providers.
  • Decentralized Identity and Verification Systems: Technologies for managing and verifying digital identities on decentralized networks, including for KYC (Know Your Customer) purposes. Likely touching on identity solutions like Civic, BrightID, and Blockstack.
  • Blockchain-Based Voting and Governance: Systems for implementing decentralized voting, governance, and consensus mechanisms, foundational to DAO (Decentralized Autonomous Organizations). Relevant to governance platforms like Aragon, Snapshot, and MakerDAO.
  • AI Economic Agentic Computing: First introduced by the VeADIR Platform refers to the application of autonomous agents in economic systems, where software entities can make decisions, negotiate, and execute transactions independently. These agents use artificial intelligence to analyze market data, predict trends, and optimize economic activities like trading, resource allocation, and supply chain management. Used by OpenAi, Claude Sonnet, Meta and xAI.

The societal value of these patents to disrupt traditional financial models and fintech business practises, by essentially removing the banks as middlemen, create significant economic incentives to suppress his work.
 

True Decentralization

Current Decentralized Exchanges (DEXs) often fall short of being truly decentralized due to various practical and structural limitations. Although DEXs leverage blockchain technology and smart contracts to enable trading without a central authority, aspects like governance, liquidity, and user interface can introduce centralization. Governance tokens might be concentrated in the hands of a few, influencing decision-making unevenly. The frontend, controlled by developers, represents a centralized point of control or potential failure. Liquidity pools can be dominated by a handful of large providers, leading to centralized liquidity dynamics. Some DEXs implement regulatory compliance like KYC/AML, which inherently involves centralized oversight. The use of layer-2 solutions for scalability might also undermine decentralization if not fully autonomous.
 
However, patents like US11196566B2 and US11895246B2 could pave the way for true decentralization by introducing innovations in blockchain interoperability and decentralized governance mechanisms. These patents potentially offer solutions for more evenly distributed control over exchange operations, enhancing the autonomy and distribution of decision-making, thus moving closer to genuine decentralization in the DEX ecosystem, which can be expanded to other industries like Healthcare, Supply Chain, or any other industry that trades value.
 

Who is Reggie Middleton?

Reggie Middleton, through his BoomBustBlog, became a notable figure in financial analysis, particularly for his early and accurate predictions regarding the collapses of Lehman Brothers and Bear Stearns during the 2008 financial crisis. His blog was renowned for providing in-depth, contrarian insights into economic trends, investment opportunities, and corporate vulnerabilities. Reggie won the CNBC's stock draft consecutively for two years, and appeared on major financial news networks like CNBC, BBC and Bloomberg where he discussed market trends, his forecasts, and the implications of financial strategies adopted by major firms. His track record has undeniably positioned him as a significant voice in the financial commentary space.
 

Reggie's work gained public attention when he appeared on the Keiser Report and CNBC in 2014, premiering his innovations built on the Bitcoin blockchain called "Ultracoin", two years before Ethereum captured the crypto limelight.
 
 
His vision was to create sound markets for a financial ecosystem where loans could be issued without banks, trades executed without exchanges, and contracts enforced without lawyers, aiming to disintermediate traditional finance by removing the middleman that doesn't add value.
 

 
In 2014, Reggie pioneered a simple Apple trade using a Pure Bitcoin Wallet: The Ultracoin Client.
Ultracoin later renamed VERI short for “Veritaseum” meaning "of truth", was the
first to market in tokenizing precious metals, offering VeGold, VeSilver and even tokenized fiat currencies or so called "Stablecoins". Veritaseum also introduced VeRent creating yield through P2P lending, and the revolutionary VeADIR platform, an autonomous, blockchain-powered research platform that independently evaluates and acts on dynamic research in real-time, communicates in machine language, and operates by purchasing, analyzing, and distributing insights on various assets while allowing VERI token holders to access and trade this research.
 
In 2018 he created the worlds first Gold Denominated Blockchain Mortgage
with traditional written note, mortgage as well as a smart contract on a public blockchain, both of whom incorporate each other by reference. The transaction had traditional title insurance and the note was recorded with the county clerk. The mortgage was denominated in Veritaseum's VeGold product, a digital form of gold in bearer form, fully transferable and redeemable upon demand.
 
 
Merely a few examples of groundbreaking products offered by Veritaseum.
 

Coinbase's Challenge: The Patent Infringement Suit

Coinbase, a dominant force in the cryptocurrency exchange market, enlisted the services of Perkins Coie, one of the largest patent law firms, to contest the validity of Reggie Middleton's patents.
They launched an Inter Partes Review (IPR) at the Patent Trials and Appeals Board (PTAB), arguing that Middleton's patents lacked novelty. An overwhelming 85% of patents are invalidated through this process. However, Coinbase's challenge was denied along with the appeal, thereby upholding and strengthening the validity of Reggie's patents.
This IPR challenge came after Veritaseum sued both Coinbase and Circle USDC for $350 million each over patent infringement. Unfortunately, Reggie's patent attorney and close friend passed away during this suit, so the cases has been dismissed without prejudice, meaning they can be negotiated or the cases reopened at any time. This leaves Coinbase in a precarious position, especially if shareholders have not been properly informed of this risk.
 
This lawsuit details how Coinbase's infrastructure, specifically its Ethereum and Solana validator nodes, engage with client devices to facilitate transactions. Exhibit #3 meticulously outlines the patent's claims, detailing the roles of computing devices, the use of memory for key pair storage, network interfaces for transaction terms, and the generation and dissemination of transaction data records. It provides concrete examples such as the processing of NFT transactions on Ethereum and the management of transaction fees on Solana, supported by in-depth references to code and API interactions. Furthermore, the exhibit explains the verification of transactions through an external state, illustrating how Coinbase's technology aligns with the patent's principles for decentralized transaction processing without a central authority.
 

SEC's Intervention: A Turning Point

In 2019, with promising negotiations on the horizon with both the Jamaican and the Nigerian Stock Exchanges for digital asset platforms, Reggie's world was turned upside down.
 
The SEC accused Reggie of fraud, alleging he misled investors about the functionality of Veritaseum's VeADIR platform, which the SEC ordered to be shut down following a live demonstration. The SEC also made claims on the validity of Reggie's patent applications, which have since been approved by both the USPTO and the Japan Patent Office. Oddly enough, the SEC may actually infringe on these very patents through the disgorgement and storage of seized crypto tokens.
 
Despite Veritaseum's cooperation with the SEC over a two-year period, along with a detailed response addressing the SEC's allegations, and not one token holder claiming to be defrauded, these allegations still led to a Temporary Restraining Order (TRO) that froze millions in assets, destroying the company's operations, and forcing a consent judgment "neither confirming or denying the allegations". The SEC would top it all off with a gag order that barred Reggie from publicly discussing the matter.
 
Keep in mind, the SEC is claiming jurisdiction by calling Utility Tokens "Digital Asset Securities" but recently SEC Commissioner @HesterPeirce stated:
 
"...by using imprecise language we've been able to suggest the token itself is a security, apart from that investment contract, which has implications for Secondary Sales, it has implications for who can list it...
 
We've fallen down on our duty as a regulator not to be precise. So, tucking into a footnote that yes we admit that now that the TOKEN ITSELF IS NOT A SECURITY, that is something we should have admitted long ago and then started wrestling with the difficult questions."
 
 
This calls into question if the SEC even had jurisdiction to bring forth this case to begin with. The Veri Community would later challenge the SEC's unproven allegations against Reggie with
a Dossier supporting the Vacating or Setting Aside of this case, and suggesting possible misconduct by the SEC.
 

Allegations of SEC Misconduct:

  • Misrepresentation of Facts: Assertions that the SEC deliberately mischaracterized the
    functionality of the VeADIR platform, along with the patents and their value, by labeling them as lacking novelty and part of fraudulent activities.
  • Misleading Evidence: The SEC's use of declarations from Patrick Doody and Roseann Daniello, which contained misleading information about the personal ownership of a Kraken account used to misappropriate funds. Doody would later correct his statement, but the SEC did not update the court with this new information, potentially misleading the judicial process.
  • Conflict of Interest: Doody's undisclosed financial interests in the digital asset space through Lily Pad Capital LLC could suggest a bias in his testimony, which was pivotal in obtaining the TRO.
  • Coercion and Intimidation: Witnesses like Lloyd Cupp and John Doe provided affidavits claiming coercion by SEC attorneys to alter their testimonies, pointing towards witness tampering and intimidation.

placeholder

Summary Articles of the Bar Complaint and RICO Dossier

 

Comparisons with the SEC Misconduct in the DEBT Box Case

The DEBT Box case shares a troubling parallel with the Veritaseum case. In both cases a Temporary Restraining Order (TRO) freezing funds was issued using dubious evidence which suppressed the ability to defend themselves. This behavior was already admonished by five US Senators
in a letter to Commissioner Gary Gensler in which the SEC presented misleading claims in this now high-profile cryptocurrency case.
 
"Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other enforcement cases brought by the Commission may be deserving of scrutiny. It is difficult to maintain confidence that other cases are not predicated upon dubious evidence, obfuscations, or outright misrepresentations."
 
Given the similarities in alleged procedural misconduct between the cases, it raises systemic questions about the SEC’s litigation approach in cryptocurrency matters.
 
 
This parallel underscores a potential agency-wide issue that could involve either implicit biases against crypto companies or an explicit strategy to pursue aggressive, potentially misleading tactics in court.
 

Is The Fox Guarding the Hen House?

In a significant development, the Attorney Grievance Committee (AGC) has decided to forward a complaint against SEC attorney Jorge Tenreiro to the SEC's Office of General Counsel (OGC) for investigation. This controversial move suggests a potential conflict of interest, given that the OGC is part of the SEC, the very agency where Tenreiro was recently promoted to Chief Litigation Counsel. The complaint, filed by the Veri community, accuses Tenreiro of misconduct including alleged coercion, witness tampering, and misrepresentation during SEC investigations. The Veri Community argues that this decision undermines the integrity of the legal process, as the OGC's role is to provide legal advice and defend the SEC, not to independently investigate its own employees. This raises questions about the impartiality and transparency of the disciplinary process for attorneys, especially when it involves high-profile figures like Tenreiro.
 
"As noted in re Rowe, 80 N.Y.2d 336 (1992), the public’s confidence in the legal profession depends on transparent and impartial disciplinary processes. Delegating oversight to the SEC, where Mr. Tenreiro remains a senior official and where the OGC has a clear institutional stake, jeopardizes this confidence and risks the appearance of protectionism.”
 
The VeriDAO has submitted a response letter to the AGC along with creating a PDF generator
to help the estimated 100 complainants and anyone else interested in requesting the AGC to reconsider this action.
 

Legal and Judicial Trials

The legal battles would only continue for Reggie. The case of Hall v. Middleton, in which Hall, a 1% shareholder sued Reggie, raises concerns of judicial bias and procedural mishandling. In this case, Reggie was denied Due Process and barred from presenting crucial evidence or calling witnesses due to his former attorneys' "Office Failures" that missed deadlines to submit evidence without the knowledge of Reggie or the firm Brundidge & Stanger that outsourced his counsel as detailed in their affirmations.
 
"In my many years of practice it is a rare instance where I have witnessed an attorney intentionally not file critical documents as required by Court Order without the permission or knowledge of his client, who had an established and fully developed attorney client-relationship with said attorney, and then misrepresent that the requirements of the Court Order were being satisfied. This is one of those instances and I hope not to see another."
~ Carl Brundidge
The judge ruled that Reggie must:
  • Pay a $1M fine to his company Veritaseum Inc., in which he owns 99%
  • The plaintiff was awarded costs of $495k against Veritaseum Inc.
  • The Judge ordered Patents (filed before the creation of Veritaseum Inc.) to be assigned to the company without compensation.

Attorney's "Office Failures":

  • Sheridan England missed critical deadlines, resulting in the striking of exculpatory evidence. England’s inaction or inadequate defense exacerbated Middleton’s legal vulnerability, directly leading to adverse outcomes.

Judge Schecter’s Conduct:

  • Ignoring Exculpatory Evidence: Despite knowledge of its existence, Schecter struck Middleton’s post-trial memorandum.
  • Procedural Bias: The judge’s decisions systematically favored Hall, including allowing him to collect attorney fees from Middleton personally, contrary to the principles of derivative law.
  • Forced Patent Transfers: Schecter’s order to transfer patents to an underfunded entity (Veritaseum) which were court restrained by the same judge, rendering them defenseless against attacks and IP theft.
This ordeal was compounded when Reggie was held in Contempt for using personal funds (while Veritaseum’s funds were court-restrained) to successfully defend his patents against an IPR challenge by Coinbase in the PTAB of the USPTO in an attempt to invalidate these patents. The Forced Patent Expropriation to Veritaseum without compensation or the ability to defend them could be seen as coordinated as it benefited very large competitors seeking to avoid licensing fees or infringement claims, or possibly even IP Theft.

ETHgate: The Broader Conspiracy Allegations

Parallel to Middleton's struggles, "ETHgate" emerged, involving allegations by Ethereum co-creator @StevenNerayoff. Nerayoff claimed a government conspiracy aimed at controlling or monopolizing cryptocurrency development by targeting key figures. This narrative suggested that by attacking innovators (like Reggie Middleton as the Veri Community contends), the SEC might have indirectly cleared a path for Ethereum, which, despite its decentralized claim, benefited from a regulatory environment less scrutinized than its competition.
 
The term "ETHgate" encapsulates the belief that Ethereum's "Free Pass" from regulatory scrutiny might not just be due to its technological merits but also due to strategic regulatory maneuvers, where attacking smaller or less established DeFi projects could safeguard larger, more influential platforms like Ethereum.
 
Back in 2021, @JohnEDeaton1 from @CryptoLawUS explained XRP's side of Ethereum's "Free Pass". More recently, further SEC RICO Claims are insinuated in "RIGGED from the start" a documentary by @Fruition_News , along with posts by @KuwlShow and the XRParmy involving the SEC, Ethereum, a16z, and Consensys surrounding the Bill Hinman speech. Active FOIA requests by @EleanorTerrett seek to shed light on meetings between Hinman and Ethereum members.
 
Given the SEC protection of ETH and the high probability of Ethereum infringing on Reggie Middleton's patents as meticulously detailed in Exhibit #3 of the Coinbase case, is it ridiculous to believe Reggie Middleton could have been targeted?
 

 

Community Support: The Backbone of Resilience

Despite the SEC's narrative labeling them as "The Defrauded," the Veritaseum community rallied around Reggie.
 
                          SmartMetal with embedded NFT avalaible through VeriDAO.io
 
Financially devastated and with his funds frozen, Reggie faced foreclosure and was threatened with jail time after contempt charges for defending his patents using personal funds. In a remarkable show of support, the Veri Community rallied, raising an impressive $149,000 in less than two weeks to cover the fine while the case is under appeal.
 
They funded legal battles largely through donations and more recently with innovative means like NFT silver rounds called SmartMetal using Reggie's patented technologies, underscoring their belief in his vision. The first minted round was auctioned off for an astonishing $14,000 won by "M S"
 
"There is no better witness to the veracity of any defense than the alleged defrauded defending the alleged fraud at their own expense"
~ The Veri Community
This community support was not just financial but also moral, with efforts such as an Amicus Brief in the case against XRP, a No Action Letter (NAL) seeking clarity on secondary market sales of tokens, a Bar Complaint against the SEC's newly promoted Chief Litigation Counsel, and the @dao_veri's
#ProjectSunlight The SEC RICO Revelation.
 

A Call for a New Regulatory Paradigm

 
Reggie Middleton's saga is emblematic of the challenges faced by pioneers in the blockchain and DeFi arenas. His patents, now granted, underscore their foundational nature, yet the path to their recognition was marred by legal battles, suggesting a systemic issue where the regulatory framework might not fully comprehend or support emerging tech. His resilience, supported by an unwavering community and the validation of his intellectual property, underscores the need for a regulatory environment that fosters rather than stifles innovation. As blockchain technology continues to evolve, Reggie's story serves as a critical reference for balancing innovation with legal and ethical governance, ensuring that the future of finance remains open to all, not just those with the resources to navigate the legal maze.
 
For more information visit https://veridao.io/
 
 
I know what everyones question is, "HOW CAN I GET MY HANDS ON THE $VERI TOKEN BEFORE EVERYTHING GETS REVERSED AND RELEASED BACK TO THE COMMUNITY?" 
 
Your in luck: Mark is a trusted source, longtime Veri Vet that beta tested the VeADIR platform. Simply follow the thread below. I highly advise picking up a few, and tuck them away! This is the token that could literally FLIP BITCOIN $100k and beyond!
 
 

The information provided in this video, including but not limited to documents regarding legal matters, is for informational purposes only. It does not constitute legal (or any other) advice, and no warranties or representations are made regarding the accuracy, completeness, or fitness of the information for any specific purpose. VeriDAO and its operators do not act as attorneys or legal, financial or technical professionals or advisors and are not responsible for any actions taken or decisions made based on the content provided. Users should seek independent legal counsel for any legal advice or guidance. By watching this video, you agree that VeriDAO and its operators shall not be held liable for any damages or legal consequences arising from the use or misuse of the information contained herein.

Link

 

Disclaimer:
 
The content provided in this document is intended strictly for informational and educational purposes only. This document constitutes a research opinion and should be regarded as such. All claims, statements, allegations, and opinions contained within are based on publicly available information and are allegations unless and until proven in a court of law. The authors expressly disclaim any representation or warranty regarding the truthfulness, accuracy, completeness, fitness for a particular purpose, or durability of the information contained herein.
 
The authors of this document are not licensed attorneys or legal professionals and do not claim to provide legal, financial, or professional advisory services. Nothing in this document should be construed as legal advice, legal opinion, or any form of licensed advisory counsel. If you require legal assistance or professional advice, you are strongly encouraged to consult a licensed attorney or qualified expert in the relevant field. The authors are laypersons presenting research-based opinions, and as such, this document should not be relied upon to make any decisions of legal, financial, or professional significance.
 
The authors make no guarantees, express or implied, regarding the completeness or reliability of the information presented. No warranties of any kind are offered regarding the accuracy, validity, timeliness, or completeness of any information within this document. The information may contain errors or inaccuracies, and any use of it is entirely at your own risk.
 
Furthermore, this document may contain statements of belief, criticism, or commentary, and all such statements are offered solely as opinions protected under the principles of free speech. The authors disclaim liability for any interpretation that may be construed as libel, slander, or defamation, as the document aims to present alleged facts and subjective opinions for educational research purposes only. All statements about individuals, organizations, or entities should be understood as unproven allegations, and readers are urged not to interpret them as established facts.
 
The authors will not be liable for any damages, losses, or legal consequences that arise from the use, misuse, or reliance on the information provided herein. No responsibility is assumed for any actions or decisions that any party may make based on this document. The reader assumes full responsibility for any and all consequences that may arise from using the information contained in this document.
 
By accessing and using this document, you agree that neither the authors nor any affiliated parties shall be held liable for any direct, indirect, incidental, special, consequential, or punitive damages resulting from your use of this information. The authors reserve the right to update or revise the information in this document at any time without notice, but they are under no obligation to do so.
Finally, any statements regarding individuals, entities, or organizations are not intended to malign, defame, or harm the reputation of those mentioned. Any resemblance to real individuals or incidents is purely coincidental, unless otherwise explicitly stated, and the authors urge readers to exercise caution and discernment when interpreting the information presented.
 
This document is a work-in-progress, part of an ongoing investigative process, and should not be treated as definitive or final. Readers are encouraged to independently verify the information and seek professional advice before acting on any information herein.
 
Read full Article
post photo preview
SEC Drops Dealer Rule Appeal

 The US Securities and Exchange Commission (SEC) has abandoned its appeal of a contentious dealer rule designed to classify digital asset operations as regulated securities dealers broadly.

  • A federal judge ruled that the SEC had exceeded its authority by potentially categorizing nearly any participant in buying and selling securities as a dealer.

  • This decision is part of a broader reset in the SEC's approach to digital assets under new leadership.

  • The agency’s move to drop the appeal, amid concerns that continued litigation could reduce Treasury market liquidity and increase taxpayer costs.

  • Additionally, the SEC recently sought to pause its enforcement actions against Binance, indicating its readiness to resolve disputes through alternative means.

  • Blockchain Association CEO welcomed the dismissal, expressing hope for more productive discussions between regulators and the crypto industry as the US embraces a friendlier regulatory framework for digital assets.

What’s next: With acting chairman Mark Uyeda overhauling senior staff and legal strategies, the SEC is shifting away from its historically adversarial stance, a policy long associated with former chairman Gary Gensler.

For builders and investors: The new approach encourages constructive conversations between regulators and industry players, potentially leading to clearer guidelines and a more predictable operating landscape for both builders and investors.

Link

Read full Article
post photo preview
Tether Teams Up With US Lawmakers on Stablecoin Rules

Tether is reportedly working with members of the US House Financial Services Committee, specifically Representatives Bryan Steil and French Hill, to shape federal stablecoin regulations.

  • This includes contributing to the STABLE Act introduced by both lawmakers in early February, as well as offering input on two additional stablecoin bills.

  • According to Tether CEO Paolo Ardoino, the company wants its perspective heard during the legislative process and is prepared to adapt to US rules.

  • The new rules may include requirements like monthly reserve audits and 1:1 collateral backing.

  • Tether’s involvement comes amid broader regulatory discussions, including meetings between crypto industry leaders and the SEC, and the push to bring stablecoins onshore.

  • Meanwhile, the Federal Reserve is warming to stablecoins as a means of preserving the US dollar’s global dominance but remains concerned about risks such as de-pegging events and market fragmentation.

What’s Next: Tether’s collaboration with lawmakers suggests that stablecoin regulations could soon take a more defined shape and may introduce stricter compliance measures, including mandatory audits and full collateral backing.

Why it Matters: If lawmakers strike the right balance, stablecoins could cement their role in global finance, benefiting both the crypto industry and the broader economy.

Our Take: If Tether and other stablecoin issuers adapt to US regulatory frameworks, it could bring legitimacy to the stablecoin sector, encourage institutional adoption, and integrate crypto more deeply into the traditional financial system.

Link

Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals