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Tuesday, April 20, 2021

Signal under fire from the MobileCoin partnership

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Controversy surrounds the recently announced MobileCoin integration by Signal, with users expressing concern over the Signal founder ‘s ties to the cryptocurrency, the opacity surrounding the coin’s issuance and the suspicious gains leading up to the coin. announcement of the partnership.

Signal is an encrypted messaging app that has been adopted by the privacy and security-conscious community since its launch as Open Whisper Systems in 2013 and its rebranding two years later.

MobileCoin was founded in 2017, issuing around 15% of its offering to private investors after its entire offering was minted at launch.

The messaging app announced that it launched the payment functionality through MobileCoin on April 4, with Signal founder Moxie Marlinspike stating that she chose MobileCoin due to its low storage capacity and fast transactions. without sacrificing privacy on mobile devices.

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Signal’s decision to integrate MobileCoin appears to have been made some time ago, with Internet Archive’s Jonah Edwards noting The source code for the cryptocurrency integration was kept private for nearly 12 months before being published on GitHub.

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As MobileCoin’s MOB token rose around 450% from March 28 to April 3, and news of Signal’s integration pushed prices to $ 66 as of April 7, some observers believe the price could have been affected by investors with prior warning of the announcement.

Concerns have been raised about Moxie’s relationship with MobileCoin, with early copies of the project’s white paper appearing to list Marlinspike as MobileCoin’s CTO.

While MobileCoin CEO Joshua Goldbard has sought to assure the community that Marlinspike served only as a “technical advisor” for the project and never served as an executive, Goldbard appears to have been inconsistent in his characterization of Marlinspike’s involvement in the project.

In the Reddit thread, Goldbard dismisses the characterization of Marlinspike as one of the founders of MobileCoin. However, Goldbard also describes Marlinspike as one of the three people who “created Mobilecoin”.

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Goldbard also appears to be avoiding questions regarding Marlinspike’s compensation for his role as technical advisor to the project. The CEO of MobileCoin also said that the team is working with their lawyers to determine what information regarding the MOB’s circulating supply can be made public:

“Regarding the flow of supply, we are still working with our lawyers to figure out what we can and cannot say here. The total number of coins is 250 million, all of which were minted on the first day. We have worked diligently to get the coins into the ecosystem as quickly as possible. “

Buymobilecoin, a website that allows individuals to buy MobileCoin tokens directly from the project, has also sparked controversy.

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On Reddit, Goldband notes that over 50% of available MobileCoin can be purchased through the website. However, the purchasing process is opaque, with no reference price provided, and orders are organized by electronic correspondence.

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Individuals are limited to purchases of up to $ 1,000 per day and $ 5,000 per year, but businesses that can demonstrate “the need for paper-to-peer use” of MobileCOin can purchase up to $ 100. 000 euros in token every 12 months. The site makes it clear that MobileCoins are not allowed to be sold or traded with US citizens, either through the site or peer to peer in Signal.

MobileCoin is also withholding information on the number of coins sold through the platform, with Goldbard stating, “Regarding the number of coins sold on buymobilecoin.com, we do not disclose this information out of respect for the privacy of our users. . “

UKTN reached out to MobileCoin for comment, but did not receive a response until the post. This article will be updated accordingly.