Court Decides To Change Name Of Alibabacoin Crypto Platform
During the preliminary hearings, the United States District Court for the Southern District of New York sided with Alibaba, the Chinese e-commerce corporation, which filed a lawsuit against the Alibabacoin Foundation, a crypto firm from Dubai, for using its brand in the name, MarketWatch reports.
James Paul Oetken, the Judge, ruled that consumers might be misled because of the resemblance in the names of both companies, so the Alibabacoin Foundation will not have the right to use the word Alibaba in its name in the territory of the United States.
The Wall Street Journal claims that this judgement suggests that the Dubai firm will not be able to trade or advertise its cryptocurrency in the United States until the court delivers a final verdict.
In April 2018, Alibaba applied to the court with a similar statement, when Alibabacoin managed to raise $3.5 million during the ICO. The lawyers from the Chinese corporation indicated that the crypto company deliberately misled consumers by using this name. However, at that time, the court refused to impose a ban on the activities of Alibabacoin Foundation.
In early 2018, there were rumors that Alibaba, despite the strict rules of the Chinese authorities regarding cryptocurrencies, was planning to launch a crypto platform, but later the firm’s representatives denied this information.
Amid the background of the court decision, the price of the Alibabacoin (ABBC) token was corrected by more than 50% from $0.63 to $0.31 within several hours on October 24, according to CoinMarketCap.
As previously reported, the blockchain from Alibaba will help prevent illegal smart contracts.