Sorry Alibaba

Sorry Alibaba, Alibabacoin is here to stay

A new cryptocurrency hit the markets recently, and its name didn’t sit well with the Chinese retail giant Alibaba. The coin, Alibabacoin, was seen as infringing on Alibaba’s name, so Alibaba did what any company would do—it sued. Unfortunately, a judge didn’t see it through the same eyes and has now thrown out the suit, Reuters reported.

Alibaba filed its complaint against the Dubai-based group on April 2. It accused Alibabacoin of an “unlawful scheme to misappropriate” Alibaba’s brand name “in order to deceive investors in the U.S. and around the world.” It argued that the company had used Alibaba’s name to raise more than $3.5 million through its initial coin offering (ICO), and that the company is not registered nor approved by regulators in the United States.

A judge issued a temporary restraining order subsequent to the suit; however, the judge who presided over the case, J. Paul Oetken, determined that Alibaba has no jurisdiction in the U.S. It also decided that, since China bans all ICOs, there could not be any possible confusion.

In reaching his decision, the judge stated, “Alibaba did not show he had jurisdiction, having failed to establish a ‘reasonable probability’ that Alibabacoin’s interactive websites were used to transact business with customers in New York.” Judge Oetken further elaborated on his decision, adding, “Any injury Alibaba might have suffered to its business, goodwill and reputation from alleged trademark infringement likely occurred in China, where the e-commerce retailer is based.”

Alibabacoin was founded by Jason Daniel Paul Philip, who currently serves as the company’s CEO, and Hasan Abbas, its chief technology officer. It has offices in Dubai and Minsk, Belarus, and began offering its ICO in March. The ICO will be conducted in phases, with the first having taken place between March 1 and March 15, according to the company. A second phase was scheduled to begin on March 16, but the company hasn’t updated its information to show whether that phase took place. Nor has the company updated its website to indicate how much it has collected to date.

The lack of updates and public information are enough to create a less-than-confident opinion of the company. Requests for comments have gone unanswered and more potential investors are now questioning the legitimacy of the cryptocurrency.

In a statement to CoinGeek, a spokesperson for the Alibaba Group said the eCommerce giant planned to submit a new motion.

“Alibaba Group is not affiliated with the ABBC Foundation. The court’s ruling on April 30 was with respect to jurisdiction. We will be submitting a new motion and are confident we will be able to put an end to this willful, concerted and unlawful scheme by the ABBC Foundation to exploit Alibaba Group trademarks,” the spokesperson said.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Chinese e-Commerce giant Alibaba sues Alibabacoin

Chinese e-Commerce giant Alibaba sues Alibabacoin

Looks like the first thing they’re spending that ICO money for is hiring lawyers.

Two Alibabas are at war: Chinese e-commerce giant Alibaba.com is suing Dubai-based Alibabacoin Foundation, which launched and raised over $3.5 million through an ICO of the Alibabacoin.

Alibaba.com alleges that AlibabaCoin intentionally made no efforts to differentiate themselves from the e-commerce giant, and information on AlibabaCoin’s white paper seems to hint that they were taking advantage of the confusion and riding in on the former’s reputation to benefit their token sale.

AlibabaCoin claims that they are implementing artificial intelligence and deep learning to integrate facial recognition in accessing wallets, trading, and payments. Their white paper also focuses on international online shopping, and the company’s web domains were registered very shortly after Alibaba.com announced that they will not be creating their own cryptocurrency.

The similarities were, in fact, confusing. Even the logo colours seem to match.

Chinese e-Commerce giant Alibaba sues Alibabacoin

The white paper also outlines several other expansions for the company. Apart from trading, wallets, and shopping payments, the company also mentions building an education platform, as well as launching charity events. The white paper says that “ABBC is a non-profit foundation created for a purpose to enhance the blockchain technology and to share the financial benefits to all parts of the world,” although launching an ICO not for profit is something that is hard to believe at this time, especially for a company claiming to utilize the latest technology for shopping.

In their defense, AlibabaCoin said they were well within their rights to use the name. “The legend of Alibaba conjures up thoughts of magic, gold coins, and ‘Open Sesame,’” Alibabacoin said. “The ABBC entities are well within their rights to use a word connoting magic and golden coins in an area (Alibaba) has not used or, at the very least, has abandoned.” A Reuters report says that the company’s US-based lawyer has yet to comment on the case.

The U.S. District Court of the Southern District of New York has issued a temporary restraining order against AlibabaCoin, which has since posted a disclaimer on their website stating that they are in no way connected with Alibaba.com.

Chinese e-Commerce giant Alibaba sues Alibabacoin

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Alibaba-owned Taobao outlaws ICOs

Alibaba-owned Taobao outlaws ICOs, cryptocurrency

Online shopping platform Taobao has prohibited stores from promoting initial coin offerings (ICOs), cryptocurrencies, and other related goods and services, as part of an update rolled out earlier this week.

The platform, which is owned by eCommerce giant Alibaba, updated its list of banned goods and services to include cryptocurrency-related services and products, such as support services for ICOs.

The ban extends as far as services offering to help with marketing ICOs and even drafting business proposals, as the site looks to claim down on ICO and crypto-related stores within its marketplace.

Coming into effect from April 17, the updated rules effectively outlaw any product or service based on or derived from blockchain technology from being sold through their site—a significant expansion in Taobao’s on-platform regulation around cryptocurrencies.

Previous measures that were introduced to limit the sale of cryptocurrencies, mining hardware and tutorials will continue to have effect alongside the new measures when they come into force next week.

The move follows the decision of regulators in China to restrict ICOs in 2017, and Taobao has said it will punish store holders in breach of the provisions when they begin to take effect.

Despite the national ICO ban, first announced by the Chinese government in September, a number of services have remained on the Taobao platform, including some which have been identified as helping draft fake ICO documentation.

At press time, there were still a number of services offering help with drafting ICO white papers, as well as several other support services for ICOs and cryptocurrency products, suggesting a number of individual sellers have yet to yield to the change in policy.

The decision brings Taobao in line with a number of other online platforms that have limited available outlets for those participating in unregulated ICOs and support functions. It follows similar steps by Google, Twitter and Facebook in limiting ICO services from using their platforms.

Initial coin offerings exploded in popularity over 2017, with a variety of different projects put forward for new tokens and cryptocurrencies.

However, following crackdowns from regulators international, including the U.S. Securities and Exchange Commission, and more robustly, regulators in China, the net is now closing in on those intent on using ICOs illegitimately or fraudulently.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.