Říj 12

‘Nurture Productive Aspects Of Cryptocurrency,’ US Presidential Hopeful Tells Senate

The US senator and potential presidential contender who suggested cryptocurrency “hurt” American families repeated concerns about the industry on October 11, saying it was “easy to steal.”


Warren Argues For Consumer Protection ‘Balance’

In a Senate Banking Committee hearing, Elizabeth Warren voiced fresh worry over the current regulatory climate in Washington, implying balanced rules should come into force.

At the same time, Warren poured scorn on ICOs, alleging “a lot of small investors” were being “scammed” by them, Forbes reports.

“The challenge is how to nurture productive aspects of crypto with protecting consumers,” the publication quotes her as saying.

Last year, Warren had claimed when US regulators turn their attention away from an emerging phenomenon in need of regulation, it was “American families” who “suffer” as a result.

“It was exactly that attitude at the Fed in the run up in the crash in 2008,” she said at the time. “The Fed had a lot of tools they could have intervened, but they sat there on their hands and said, ‘Let the market go forward.’”

Elizabeth Warren

Roubini Has No Time For Cryptocurrency

The Senate hearing meanwhile has already become infamous in cryptocurrency circles following comments from economist and famed naysayer Nouriel Roubini, who delivered what could be considered his most scathing appraisal of the industry yet.

“Crypto is the mother or father of all scams and bubbles,” he told the Committee as part of the prepared testimony.

“Especially folks with zero financial literacy – individuals who could not tell the difference between stocks and bonds – went into a literal manic frenzy of Bitcoin and Crypto buying.”

On ICOs, Roubini was also keen to espouse the view the industry was mostly legally dubious, using results of research published earlier this summer by Satis Group which concluded over 80 percent of such projects were scams.

“It would appear that ICOs serve little purpose other than to skirt securities laws that exist to protect investors from being cheated,” he concluded. 

What do you think about Elizabeth Warren and Nouriel Roubini’s appraisals? Let us know in the comments below! 


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Říj 09

Ether September Price Lows Could Signal End of Bitcoin Bear Market: Analyst

Ether (ETH) prices “capitulating” in September was “significant” to ending the 2018 cryptocurrency bear market, according to a new theory from one cryptocurrency analyst. 


Thies: ‘We Were Looking In The Wrong Place’

In a series of tweets, UTR Equity’s crypto market commentator Eric Thies postulated that Bitcoin’s run to all-time price highs in December 2017 came as a result of Ether investment during the ICO phenomenon.

When interest slowed, so too did prices begin to freefall — Bitcoin reaching lows below $5900 in February this year and Ether below $170 in September.

“(Bitcoin’s) run in the end of 2017 was fueled by a MASSIVE ICO (ERC20) bubble and therefore indirectly fueled via ETH. Meaning that ETH capitulating in early Sept was significant to ending the bear market,” he wrote, noting the concept was a “theory.”

“We were all looking in the wrong place, expecting (Bitcoin) to do it.”

The ‘When Moon?’ Question

Commentators across the cryptocurrency industry and beyond have long sought a narrative to accompany the continued ‘slow bleed’ performance of most assets this year.

As Bitcoinist reported, talk of institutional investors entering to prop up prices continues to contrast with technical analyses suggesting price declines have not yet finished.

While most sources agree that a decisive U-turn cannot be far off, disagreements remain as to the real impact of institutional money or other factors on the industry, should these appear in the short term.

BTC

For Thies meanwhile, funds flowing in via exchanges, stablecoin Tether (USDT)’s token issuance, and other factors support the bear market culmination.

“…Capitulation really may have been $12k-$6k in early Feb, and everything thereafter has been the ecosystem stabilizing itself after a MASSIVE run up,” he concluded about Bitcoin’s performance.

Bitcoin prices have experienced several months of broad stability, at press time falling within 4 percent of values against the USD seen on the same date in July, August and September. 

What do you think about Eric Thies’ market theory? Let us know in the comments below! 


Images courtesy of Shutterstock, Twitter, CoinMarketCap.

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Říj 02

Fundstrat Says ‘Bullish Trend’ to Develop in Coming Months

The bullish trend isn’t going to be for at least a few more months, according to a technical expert from Fundstrat Global Advisors. He holds that time is needed for the market to recover the technical damage developed through the year.


Bulls Will Have to Wait

At the time of writing this, Bitcoin (BTC) 00 marks a slight decrease of less than one percent for the last 24 hours. The market’s leader also managed to stand its ground for the last week as.

However, having peaked at around $7,400 earlier in September, the cryptocurrency trades about 13 percent below its monthly high.

According to Rob Sluymer, though, an analyst at Fundstrat Global Advisors, bulls will have to wait for a while. In a recent note to clients, the technical expert outlined:

Given the technical damage that has developed in 2018, we expect most cryptocurrencies will likely require months of repair before a new bullish trend can develop. […] This is consistent with post-bear-market behavior that has developed in other asset classes following bear markets.

bull

A Bit More Positive

Earlier this month, the Head Analyst and Managing Partner at Fundstrat Global Advisors, Tom Lee, expressed his positive sentiment on the price of Bitcoin, based on CBOE Global Markets’ intention to launch Ethereum future contracts. Lee said:

Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short BTC. They can now short ETH, means the net short on BTC in futures would fall.

Ethereum (ETH) 00 marks a slight weekly decrease of about 3 percent. In the last 30 days, however, the world’s second largest cryptocurrency is down with around 23 percent.

What do you think of Rob Sluymer’s position on the current state of the cryptocurrency market? Don’t hesitate to let us know in the comments below!


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Zář 25

70% of All ICOs Are Now Underwater in 2018

How much cash an ICO raised has become “less important” to markets, new research says this week after revealing 70 percent of ICOs have lost the money they raised.


Markets ‘Shrug Off Cash-On-Hand’

As part of the latest edition of its weekly newsletter, Diar investigated the current state of the ICO sector, which despite this year’s cryptocurrency bear market has raised more than in the ‘boom’ year of 2017.

“Diar number crunching shows that 70% of tokens are now valued at less than what was raised during their ICO,” it highlights.

And with tokens having no equity representation, markets have shrugged off cash-on-hand as part of an enterprise valuation.

While many investors insist the current climate is a lull which will reverse, the ‘cash-on-hand’ figures make for a distressing reading.

A $6 Billion Washout?

Compiling a table of the ‘top 10 losers’ – ICO issuers which saw the greatest value bleed after raising funds – Diar reveals an alarming trend.

As Bitcoinist also previously reported, projects such as Bancor and Sirin Labs – well known at the time of their token sales – have since faded from view, their market cap crashing to the tune of tens of millions of dollars in the process.

Sirin Labs 00, which plans to release its Blockchain phone this November, topped the list, losing $141 million in market cap from the $158 million it originally raised.

Bancor 00 lost $80 million while making up the top three are PumaPay ($102 million) and Envion ($96 million).

“As it turns out 402 out of 562 projects that raised over $8.2 (billion) are now worth $2.2 (billion) – an eye-watering $6 (billion) loss in market capitalization value against actual cash paid out to development teams,” Diar founder and editor Fadi Aboualfa continued on Twitter about the findings.

Bitcoinist recently produced a rundown of the ‘winners and losers’ in the ICO world, based on a rankings project by cryptocurrency researcher Stephen Zheng released earlier this month.

What do you think about the current state of the ICO market? Let us know in the comments below!


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Zář 13

Stablecoins: Retrofitting the Dollar’s Flaws into Cryptocurrency?

There has been much discussion lately regarding so-called stablecoins. But are they really the answer to the general instability of many cryptocurrencies? A recent article in The Guardian suggests that they may ultimately be flawed.


‘Stable’ Coins

The price of Bitcoin 00 and other conventional cryptocurrencies can vary by the hour, making them unsuitable as units of account. Whilst many retailers may accept payment in cryptocurrency, nobody in their right mind would price things directly in Bitcoin due to the fluctuating prices.

Enter stablecoins — offering all the benefits of cryptocurrency, without the awkward instability in value. Since the birth of Tether, there have been a raft of these stablecoins coming to market, all pegged to the dollar, euro, or some other national fiat currency.

Some believe that these are the savior of crypto — including Charlie Shrem, who heaps praise on the Winklevii’s latest offering, Gemini Dollar. Others are not so sure of their credibility.

Fully Collateralized

Some stablecoins are fully collateralized, meaning they are backed by an equivalent amount of fiat currency, held in reserve. Tether is one such coin, pegged to the value of the US Dollar. However, despite assurances that this is 100% backed, many still question the details of the situation.

Even if it is, there are a limited number of reasons why you would rather have Tether than the equivalent fiat. Without increasingly ‘legitimate’ motivations for having them, The Guardian article suggests that few governments would back them.

Still, US Regulators have just approved Gemini Dollars, making the currency only the second regulated stablecoin worldwide. It seems the jury is out on that one.

Global fiat currencies.

Partly or Un-Collateralized

Certain stablecoins are not fully collateralized, so operators hold only a fraction of their liability in reserve. This is the same way that most banks issue fiat currency, and one only has to look back ten years to see how that can pan out.

Any loss of confidence among investors leads to a mass exodus. Unable to cover the liability with the limited reserves, we would see the equivalent of a bank run. The peg then breaks down, decimating the value of the stablecoin.

Ultimately, we do need something to counter the price instability of Bitcoin 00 et al. If there is an increase in cases for use, or if cryptocurrency becomes universally accepted as a method of payment, then perhaps stable coins will fill that role.

Experiments in national cryptocurrencies, such as those of the Marshall Islands, may well spur this on —as may the US approval and associated legitimacy of the Gemini Dollar.

Can stable coins fulfill their promise? We will have to wait and see.

What are your thoughts on the development of stablecoins? Don’t hesitate to let us know in the comments below.


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Zář 03

Italian Serie C Soccer Club Sells Shares In Exchange for Cryptocurrency

Heritage Sports Holdings recently used cryptocurrency to buy a 25 percent stake in Serie C football club Rimini FC 1912. 


In a historic transaction, senior figures at Rimini FC 1912 (Rimini) have agreed to sell 25 percent of the team’s shares to Heritage Sports Holdings (HSH) in exchange for Quantocoin.

Rimini is a club that has not made global headlines in a long time. Even though it matched Italian giants Juventus in a 1-1 draw in 2006, the club has suffered a variety of problems — including bankruptcy — over the past few years.

A Sports Firm With An Eye Towards The Future  

HSH is no stranger to the world of cryptocurrency. It currently owns Gibraltar United, a squad that is set to start partially paying player salaries with virtual currency. Founded in 2013, HSH also owns an 80 percent stake in Union Deportive Los Barrios — a club currently in Spain’s sixth division.

Global ambassadors for the firm include Brazilian legend Roberto Carlos, as well as the Dutch maestro Patrick Kluivert.

HSH partner Pablo Dana reportedly convinced Gibraltar United President Paul Collado that paying players in Quantocoin would help the team save money and make it easier for the team to trace payments. Now, Dana says the purchase of Rimini shares is just one of many transactions HSH hopes to make in the world of football.

Kluivert

 Can Cryptocurrency Fix The World’s Game?

Dana thinks digital currencies could help stem the tide of corruption in global football. He believes the Quantocoin payment system could be used to ensure that backhanded deals or bribes are not carried out since it is able to note every time a payment is made.

According to Dana, blockchain and digital currencies could be a great way to foster transparency and keep in line with newer UEFA anti-money laundering rules. Part of these new rules includes a clause that clubs in Europe are required to publish the amounts they are spending on player salaries and agent fees.

Both Dana and Rimini’s President, Giorgio Grassi, are excited about the possibilities of cryptocurrency when it comes to football.

Dana thinks entities who get involved with digital currencies are “innovators with a long term view,” and thinks it would be “something incredible” if a club was sold for millions of Euros worth of digital coins.

Crypto and Blockchain Make Their Way Into Football

Speculation is rife that blockchain and cryptocurrency could shape the future of football. UEFA carried out a trial of a mobile phone-based blockchain application for tickets during the Real Madrid-Atletico Madrid Super Cup final.

In late August, seven different teams in the English Premier League decided to set up a wallet with eToro to help facilitate Bitcoin payments to players. In late August, seven different teams in the English Premier League decided to set up a wallet with eToro to help facilitate Bitcoin payments to players. Back in January, an amateur football team in Turkey announced it bought a player using Bitcoin.

Harunustaspor said it purchased 22-year old Omer Faruk Kiroglu for the sum of 2,500 Turkish lira (roughly $665 at the time), and 0.0524 Bitcoin (roughly $520 at the time).

Do you think blockchain and cryptocurrency could be used to help fight corruption in global football? Let us know in the comments! 


Images courtesy of Rimini, Bitcoinist archives.

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Srp 26

Charlie Lee’s Litecoin ‘Ponzi Scheme’ Called Out by Silverbug YouTuber

Popular silverbug and Golden State Mint head TruthNeverTold recently took to his YouTube channel to once again call out the cryptocurrency market as little more than a Ponzi scheme. Specifically, he claims that Litecoin and its founder, Charlie Lee, are prime examples of duping unsuspecting investors. 


As Bitcoinist reported on December 20, 2017, Litecoin founder Charlie Lee “sold or donated” his entire Litecoin wealth to avoid “conflicts of interest” arising from its growth. Interestingly, Lee sold the very top of Litecoin’s unprecedented pump — something which TruthNeverTold views as an obvious profit-taking exit from a nothing-for-something Ponzi scheme.

States TruthNeverTold:

He sold out everything at the top. Good on Charlie Lee! Great job! But you just proved the fact that, as I’ve been saying since 2011, early adopters take something that has no intrinsic value, they set about building the perceived value to an unsuspecting public, only to sell that illusion for something that has real value.

The YouTuber also takes issue with Lee’s reasoning. The Litecoin founder explained, at the time:

Litecoin has been very good for me financially, so I am well off enough that I no longer need to tie my financial success to Litecoin’s success. […] For the first time in 6+ years, I no longer own a single LTC that’s not stored in a physical Litecoin.

For TruthNeverTold, Lee all but admitted that he cashed out at the top of the bubble, selling cryptocurrency for fiat and ensuring his long-term financial success.

Charlie Lee has since defended his actions as benign and well-intentioned. Despite the fact that the Litecoin 00 market crashed substantially and never recovered since the point of Lee’s sale/donation, Lee claims his actions has no effect on the market, stating:

I didn’t actually have that many litecoins. My selling litecoins didn’t actually affect the market itself but the fact that I had litecoins and people were thinking that I might dump it on the market actually was an issue.

Lee also believes Litecoin will eventually bounce back, explaining:

I still think it was the right move but I question whether — I think in the long run it was the right move but in the short term while the price is down, below the all-time high, it just feels like it’s not the right decision. But I think like, moving forward, five years down the road, when the price is back to the all-time high, I feel like it will be the right move.

What do you think about Charlie Lee selling his entire stake in Litecoin at the top? Do you think Litecoin and other cryptocurrencies are Ponzi schemes, or is TruthNeverTold simply overreacting to a market bubble? Let us know your thoughts in the comments below!


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Srp 20

Three Chinese Men In Custody Over $87M Cryptocurrency Theft

Police in China has detained three men suspected of pulling the country’s biggest ever cryptocurrency heist — worth 600 million yuan ($87 million). 


Theft is China’s Biggest: Reports

As multiple outlets report quoting local news publication Huashang News on August 19, authorities concluded an investigation spanning almost six months into three men who allegedly hacked a computer for Bitcoin and Ether.

“Our bureau has not dealt with this kind of case before,” South China Morning Post quotes a police officer as telling Huashang“It’s the first virtual currency-related case in Shaanxi.”

According to Huashang, the investigation behind the arrest of the men — known as Zhang, Cui and Zhou — began in March, when the victim came forward to report a hacking of his computer. At the time, losses were thought to total 100 million yuan.

Having analyzed “30,000 pieces of information” related to the event and the alleged perpetrators, the arrests were made on Wednesday last week. Legal proceedings remain ongoing.

China Leads World in Blockchain Patent Applications

Disrupting The Bitcoin Criminal Narrative

The size of the theft is reminiscent of an increasing cryptocurrency criminal trend largely playing out in nearby Vietnam.

As Bitcoinist previously reported, a giant altcoin scam which afflicted 32,000 investors earlier this year saw organizers make off with funds worth a reported $660 million at the time. More recently in July, the CEO of a local cryptocurrency mining company suddenly disappeared and shuttered operations — leaving $35 million unaccounted for.

While Chinese police added that the use of cryptocurrency made their job more difficult, on a global level, law enforcement agencies are beginning to change the narrative that crypto assets aid and abet the success of criminals.

In an interview with Bloomberg earlier this month, Lilia Infante, an agent with the Cyber Investigative Task Force at the US Drug Enforcement Administration, said she actually hopes malicious actors will “keep using” Bitcoin and even privacy-focused altcoins such as Monero. “The blockchain actually gives us a lot of tools to be able to identify people,” she revealed. 

What do you think about China’s latest cryptocurrency theft? Let us know in the comments below! 


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Srp 17

Japan’s Biggest Social Network LINE Launches $10M Blockchain Investment Fund

Yet another blockchain investment fund is set to launch in South Korea. Messaging giant Line furthers its foray into the field of cryptocurrencies and is dedicated to streamlining early-stage startup investments with a $10 million fund. Additionally, the company announced the successful listing of TRON to its cryptocurrency exchange.


South Korea Sees Serious Investments in Blockchain

Line, the Japanese messaging company harboring over 200 million users announced August 15, that is set to launch a $10 million investment fund through its Korea-based blockchain subsidiary Unblock Corporation.

Silicon Valley Philanthropists Dig Deep into their Crypto Wallets during Fundraising Event

With this initiative, LINE will become one of the very first publicly traded companies to formalize investments in tokens through a dedicated corporate fund. The fund aims to “boost the development and adoption of cryptocurrencies and blockchain technology.” Furthermore, the announcement also made it clear that the fund is “expected to expand in the future.”

Just yesterday Bitcoinist reported that the government of South Korea has budgeted upwards of 1 trillion won with a “focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the share economy.”

TRON Listed on BitBox

Earlier in June, Line announced that it will launch a cryptocurrency exchange through its Singapore-based subsidiary. The venue dubbed BITBOX is already live and has listed TRON to its lists of available cryptocurrencies.

TRON (TRX) has become the very first coin project which has managed to pass BITBOX’s review process carried out by their open-listing committee.

As a celebration for TRX’s listing on the cryptocurrency exchange, a total of 9 million TRX coins will be airdropped to BITBOX’s users in an event which runs until August 22nd.

Speaking on the matter, Youngsy Ko, CEO of LINE’s subsidiary in Singapore, which operates the cryptocurrency exchange said:

Integrating TRON (TRX) with BITBOX will enable us to connect with the world’s fastest-growing blockchain project. […] TRON has a solid tech platform, especially know it has joined forces with BitTorrent.

Tron’s Justin Sun acquired BitTorrent on June 11.

What do you think of Line’s increased interest in the field of cryptocurrencies? Don’t hesitate to let us know in the comments below!


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Srp 08

First U.S. Congress Member Reveals Owning Bitcoin, Ethereum

Congressman Bob Goodlatte, Chairman of the Judiciary Committee in the US House of Representatives, recently disclosed his personal cryptocurrency holdings. The revelation comes amidst rule changes mandating disclosure for members of the House.


Cryptocurrencies Stepping In Congress

Cryptocurrencies have made their way up in the high ranks of US politics. Congressman Bob Goodlatte filed his annual Financial Disclosure Statement on May 10, disclosing that he owns between $17,000 and $80,000 in digital currencies.

The statement was filed just before the House Ethics Committee passed new rules which required the members of the House to officially disclose in their annual reports whether or not they own cryptocurrencies. They also have to report on the holdings of their spouse’s if they amount to more than $1,000. Members of the House also have to report transactions involving more than $1,000 of crypto within 45 days of the event.

According to the statement, Goodlatte has invested in Bitcoin00, Bitcoin Cash, and Ethereum. The Sludge reports that his son, Bobby Goodlatte Jr., is an angel investor in Coinbase. His financial involvement in the company, though, is not disclosed.

Congressman Bob Goodlatte, who is the Chairman of the Judiciary Committee in the US House of Representatives, may become the first member of Congress to disclose that he owns cryptocurrencies.

Things Are Getting Serious

The last few months have marked interesting developments involving cryptocurrencies and politics. In May, fellow Democrats Dave Min and Brian Forde clashed over accepting cryptocurrencies as donations for the 45th Congressional race.

Earlier in January, former Republican Ron Paul said he’s in favor of legalizing alternative currencies so long as they are not used for fraudulent purposes.

Just a few days ago, Bitcoinist reported that a 2020 U.S. Presidential Candidate Andrew Yang will be accepting cryptocurrencies as official forms of donations for his campaign.

While the US Government remains uncertain on its position towards cryptocurrencies and the way they are treated, all of the above signals that they are beginning to have an impact on the American political landscape.

What do you think of Bob Goodlatte’s cryptocurrency holdings? Don’t hesitate to let us know in the comments below!


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