Altcoin COTI, which is also traded on Binance, has made an important announcement in the past few hours. The announcement of the altcoin project comes in light of the latest regulatory actions. Here are the details…
COTI stops gCOTI processes
DAG payment network COTI has announced that it is temporarily suspending gCOTI trading activities in response to recent regulatory actions from the US Securities and Exchange Commission (SEC). The decision comes after lawsuits filed against major cryptocurrency exchanges, including Binance and Coinbase, accusing them of offering unregistered securities to US investors. The SEC’s classification of some altcoins as securities, such as Cardano (ADA), has raised concerns in the crypto industry.
gCOTI update:
1/2 In light of recent events, we have decided to temporarily suspend the gCOTI exchange campaign until we have more clarity. We are moving forward, as planned, with the gCOTI community campaign, which will be announced shortly.— COTI (@COTInetwork) June 11, 2023
As a precautionary measure, COTI has decided to halt the airdrop attempt for gCOTI tokens on exchanges until more clarity emerges regarding the SEC’s stance on regulatory compliance. This move aims to ensure that COTI avoids any potential legal complications. gCOTI token holders and participants will have to wait until further information is received from COTI regarding the resumption of gCOTI trading activities.
There was going to be an airdrop for altcoin
Despite the suspension, COTI is actively moving forward with the planned gCOTI community event to be announced in the near future. This event is expected to bring together members of the gCOTI community and encourage participation and collaboration. Earlier, on May 25, COTI announced its intention to distribute 82 million native gCOTI tokens to participants of the gCOTI airdrop event scheduled for June 1. These tokens would be distributed to the first group of qualified users who would be among the first to benefit from the APY (percentage of return per year) functionality. The APY feature, which is scheduled to go live at the end of June, allows users to deposit gCOTI into a vault in addition to their COTI deposits, thereby getting a larger share of the vault rewards.
The partnership between COTI and Cardano adds even more importance to the situation. Because both organizations collaborated on many projects and initiatives and thus established a close relationship. The SEC’s classification of Cardano as a security has potentially significant ramifications for the collaborative efforts between COTI and Cardano. As the crypto industry navigates evolving regulatory environments, COTI’s decision to temporarily suspend gCOTI operations and airdrops; shows the seriousness of the situation.
COTI, as we have also reported as Kriptokoin.com, is a layer-1 Blockchain ecosystem designed for payments. Unlike traditional Blockchains, COTI does not rely on Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions. It adopts a unique consensus algorithm called Proof of Trust (PoT), which combines a directed acrylic graph (DAG) data structure with PoW. PoT can reduce transaction costs and increase transaction volume by up to 100,000 TPS.
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