A website described as an investment scam by authorities in Nova Scotia has now set off a similar warning in the NWT after claiming to be based on Primrose Lane, Fort Smith.
If anyone comes across Erik Gersten, Rachael Kathy, or Emilton Martinez while walking along Primrose Lane, let the NWT government know – because there may have been a terrible mistake.
It’s not likely, though.
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They are allegedly the three people behind LeadingPips.com, which claims to be “a trading platform based in Canada [helping] thousands of marketers to access markets around the world.”
The Nova Scotia and NWT governments both think that’s a crock.
Last month, when LeadingPips was apparently claiming to be based in Nova Scotia, a provincial official said the supposed company’s website “raises a number of red flags characteristic of investment scams.”
For example, said acting director of enforcement Stephanie Atkinson, “LeadingPips claims its accounts are guaranteed and profits will be quickly realized with no risk. These claims carry the hallmarks of investment fraud.”
The company’s website is also incapable of spelling the word “indices” and all the links to its contact page are broken.
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Some time in the last month, LeadingPips appears to have stopped claiming to be from Nova Scotia and has instead added a new address: “Primrose Lane, Fort Smith, Canada.”
Calls to the company’s listed number and an email to a support address were not immediately returned.
Fort Smith to California
On Tuesday, the strange appearance of LeadingPips on the territorial government’s radar led the NWT to issue a warning of its own.
“LeadingPips is not registered to sell securities in the Northwest Territories,” warned the Northwest Territories Office of the Superintendent of Securities, one of the NWT’s more obscure jobs.
LeadingPips “is incorrectly claiming to be based out of the NWT and to be licensed and regulated,” the statement continued. The office said no complaints from members of the public had so far been received.
“The Department of Justice urges all residents to exercise extreme caution when dealing with firms that are not registered in the Northwest Territories,” the territorial government warned. (LeadingPips’ website, despite claiming to be Canada-based, includes an image of a decade-old State of California business licence that did not tally with any information currently available in California’s business registry.)
“It is generally illegal to solicit investments in the Northwest Territories without being registered and complying with Northwest Territories securities laws,” the statement concluded.
As for Erik, Rachael, and Emilton? Their existence could not immediately be confirmed.
A reverse image search showed that photos used to represent them on LeadingPips’ website were each in use by at least one entirely different person online.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
