Cryptocurrency is the next big thing, but it’s not without its controversies and hiccups. There are currently hundreds of coins, including Bitcoin, and more are in development these days. Grabbing the headlines are people surrounding blockchain and cryptocurrencies, and one of them is Bakkt.
After the CME Future Launch in December 2017, there was a perception that Bakkt was the savior of Bitcoin because the price of Bitcoin crashed. CME Bitcoin Futures bet on the Bitcoin price with cash, Bakkt bets on the future of Bitcoin with Bitcoin in terms of storage, settlement, and withdrawal from the warehouse to the private key of the customer. Firms like BTC Trading Inc review these claims and more.
The claims are well and good, but there was something fishy with Bakkt. There was an observation about Bakkt when the company acquired Crypto Custodian, partnered with Melton, and acquired Digital Asset Company. Also, these companies applied and obtained their qualified custodian status with the Department of Financial Services.
These moves are weird because it seems like any commodity thrown in the world of trading and futures. The suspicious actions felt too good to be true. Something was up, and we investigated deeper into it.
Suspicions About Bakkt
The Co-founder of Digital Asset Company, Matthew Johnson, also works at LabCoNYC and is also the Vice President of Bakkt’s Blockchain Engineering. LabCoNYC is a venture builder, taking innovative ideas for different companies from start to finish.
However, there is little evidence to support the technology they claim exists. There is also the issue of the public keys that regulate the coins.
Where Are the Public Keys
Like what BTC Trading Inc Review also advises, investors must know the location of the public keys. However, Bakkt seems to be hiding them somewhere. The public will never get the public keys because Bakkt is keeping it at their warehouse and is creating Bakkt Bitcoin. They will never be taken out as Bitcoins but as cash.
Bakkt seems to have a secret plan in suppressing the price of Bitcoin using inflation of the supply and rehypothecation using paper contracts. This method would create a problem that’s similar to a Ponzi scheme in the long run.
Bakkts Changed Their Documentation
Previously, Bakkt called their Bitcoin custody solution as “Regulated Infrastructure,” which aims to bring the prices of Bitcoin following federal regulations. However, they deliver access is in shadows because they provide ends in the Bakkt’s warehouse. With the new documentation, Bakkt has warm and cold wallets, which are seemingly the same as storage warehouses.
Companies like BTC Trading Inc review the transactions of all crypto coins, so it’s essential to check them for credibility. Bakkt cannot provide a clear explanation of how they’ll go about the delivery of Bitcoins and public keys. Now, it is clear that the people behind Bakkt and Digital Asset Company, as well as LabCoNYC, are manipulating Bitcoin public keys. We should exercise caution when dealing with these dishonest tactics and strategies.