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 05

$30 Million New York Condo Tokenized on Ethereum Blockchain

The future of real estate and the mortgage business are set to be revolutionized by tokenized properties.


Now Everyone Gets a Slice

A $30 million Manhattan building has become New York City’s first luxury property to be tokenized on blockchain. The building is located in East Village and contains twelve 1,700 square foot condos. The entire property is now represented by an unconfirmed number of tokens on a public blockchain, and each token stands for a fractional value of each property.

Tokenizing the property now allows people with a small amount of money to invest in real estate and this could be a game changer for those living in expensive cities with sky-high property prices. Ryan Serhant, the celebrity star of Bravo’s Million Dollar Listing New York brokered the deal. Serhant explained to Forbes that tokenized property and financing could:

[…] remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders.

Manhattan, NYC

Blockchain Will Bring a Real Estate Revolution

This new method of digitally representing ownership of tangible assets on blockchain has already taken hold in the world of fine arts — a Warhol painting recently auctioned for $5.6 million via Ethereum blockchain.

The sale of the New York property was the result of a partnership between blockchain tokenization experts Fluidity and Propellr, the latter of which is a digital assets firm. Propellr CEO Todd Lippiatt believes that blockchain technology and tokenized assets will revolutionize the real estate and securities market as “traditional securities structures and issuance frameworks haven’t evolved in a long time.”

Do you think tokenized properties level the playing field for all investors? Share your thoughts in the comments below! 


Images courtesy of Bitcoinist archives, Shutterstock.

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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!


Images courtesy of Shutterstock.

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Zář 26

Lamassu Unveils New Line of Bitcoin, Cryptocurrency ATMs

On September 24th, Lamassu announced the introduction of their new line of cryptocurrency ATMs to the public. Lamassu calls its new line of ATMs, “Sintra.” The ATMs herald a new line of ATMs as another crucial step in crypto’s march towards widespread consumer use and accessibility. 


Growing Industry

According to CoinATMrader.com, there are currently roughly 3,750 crypto ATMs installed worldwide. Lamassu has been producing cryptocurrency ATMs since 2013 when they produced their first, which was called the Bitcoin Machine.

While that number sounds impressive, and the number of the crypto ATMs installed continues to grow steadily, it is important to put that number in context. Information from Data.gov, for example, indicates that there are over 5,500 bank-owned ATMs in New York State alone. Crucially, this ATM count does not include independently managed ATMs at convenience stores and other retail locations.

Cost

Pricing for the new crypto ATM’s ranges from 5,200 EU for the cheapest Duoro II model, to 8,900 EU for the highest price Sintra Forte model. The mid-priced Sintra model costs 7,500 EU. The Duoro II model is the newest model of Lamassu’s original Crypto ATM, and features one-way fiat to crypto conversion, while both the Sintra and Sintra Forte feature two-way conversion.

The new models offer a bevy of features, designed to make buying and selling crypto through the machines as painless as possible. The machines feature a sleek, futuristic look, and are all crafted in Portugal. The body of the machines is crafted out of 2.5mm steel for extra durability.

Owners of these machines can configure their ATM’s to take almost any major currency, and support conversions from fiat to Bitcoin, Zcash, Ethereum, Bitcoin Cash, Litecoin, and Dash.

While Lamassu does not directly facilitate transactions on the ATM, it does offer a backend exchange trading engine that can steer conversions to liquidity providers. Lamassu’s engine is currently connected to BitPay, Bitstamp, Kraken, and Coinbase.

Fees and Regulatory Issues

ATM operators have control over the fee structure charged by their machines and can profit by either charging direct fees or adjusting the spread charged by their liquidity provider.

On Lamassu’s website, the estimates indicate that a machine needs roughly $800-$1,000 worth of daily transactions to break-even. Lamassu estimates that the average monthly turnover on their machines is roughly $20,000 and rising.

The Sintra line of ATMs features numerous compliance features, but investors interested in purchasing and managing a machine need to do their due diligence regarding the legality of operating an ATM in their jurisdiction.

Prospective ATM operators in the United States must ensure they are following both federal and state laws. Bitcoin ATMs would currently fall under the criteria of “Exchangers,” according to the Financial Crimes Enforcement Network. In turn, they must register as “Money Service Businesses.” If you are interested in purchasing a machine in the United States, this primer is a handy starting point.

As interest in Crypto continues to grow among the retail investing community, ATMs will likely be a key “on-ramp” for investors into the crypto industry.

What do you think of Lamassu’s New ATMs? Let us know in the comments below!


Images courtesy of Bitcoinist archives, Shutterstock, Lamassu.is

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Zář 21

Brazil Investment CEO On Bitcoin Exchange Launch: ‘I’d Rather Crypto Didn’t Exist’

XP Group, owner of the largest investment firm in Brazil, XP Investimentos, confirmed it would launch a cryptocurrency exchange this week – despite its CEO saying he wished it “didn’t exist.”


Benchimol: ‘We Felt Obligated’

As Bloomberg reports quoting Guilherme Benchimol at an event in Sao Paulo, XP will finally give in to investor demand and begin a Bitcoin and Ethereum trading operation after six months of rumors.

“I must confess, this is a theme I’d rather didn’t exist, but it does,” the publication reports him as saying.

We felt obligated to start advancing in this market.

Like many South American markets, Brazil has seen a palpable uptick in Bitcoin 00 trading activity. While its figures do not match those of markets such as Chile, Argentina and Venezuela, weekly volumes for P2P platform Localbitcoins alone regularly top 1.5 million reals ($367,000).

XP Investimentos had been planning its entry into the market since at least April, insiders telling the press at the time a crypto trading platform was incoming. The company registered an entity called XP COIN INTERMEDIACAO in August last year.

The final product will go by the name of XDEX – perhaps a nod to the decentralized exchange phenomenon – and involve a team of around 40, Bloomberg adds.

Bitcoiners Bite Back Against Banks

Brazil’s extant exchange and wider cryptocurrency business sector is meanwhile struggling with an increasingly hostile landscape involving banks.

Similar to complaints in Poland in recent months, a government agency is now investigating claims that those businesses are subject to account shutdowns by institutions which would rather not deal in crypto-related transactions.

“…It does not seem reasonable for banks to apply restrictive measures a priori on a straight-line basis to all cryptocurrency companies, without examining the level of compliance and anti-fraud measures adopted by individual brokerage firm,” the agency told Reuters when the news surfaced this week.

What do you think about XP Group’s exchange announcement? Let us know in the comments below!


Images courtesy of Shutterstock

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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! 


Images courtesy of Shutterstock.

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Srp 10

Social Video App Cheez Now Offering Cryptocurrency Rewards

Social video app Cheez announced recently that it will soon be integrated with Bitcoin and Ethereum rewards for users. Some, however, are skeptical of the reward cap and centralization.


Bringing Cryptocurrency To The Masses

Cheez, a social video sharing app designed by its Chinese parent company LiveMe, is taking a dive into the world of cryptocurrency by integrating a system that will reward its users with Bitcoin00, Ethereum, and a native Ethereum based ERC20 token.

Cheez was launched in August of 2017 as an application where users could make short video clips and share them with friends or across the platform, similar to other popular applications like TikTok and the now-disabled Vine. It currently has over five million installs and is most popular with the teen and young adult demographic.

LiveMe CEO Yuki He sees an opportunity to bring the world of blockchain and cryptocurrency to this enormous group of young web-obsessed users. This new integration will allow users to take a metaphorical dip in the shallow end of blockchain and cryptocurrency.

Getting To The Cheddar

Before you quit your day job to become a crypto-earning Cheez superstar, we should talk about the reward system and how much one could expect to earn.

Dimitar Mihov (Mix) at Hard Fork gives us the low down on the rewards system. He writes:

The daily limit for rewards is capped at 0.00352 ETH or 0.000241 BTC – about $1.50 at the current rates.

Considering a consistent price, one could earn about $45 per month or $550 per year with the new system.

To earn rewards, users must complete daily tasks such as watching, sharing, or uploading content. Mix continues, writing:

Users will only be able to claim Bitcoin or Ethereum rewards for every three, six, and 10 tasks completed.

The app, however, offers a third reward choice in the form of an Ethereum based ERC20 token Contentos (COS), named after the blockchain startup that is partnered with Cheez in integrating the new system. Users will be able to claim COS once for each of the 15 daily tasks. The COS token can be used within the platform to purchase things such as filters, editing functions, and even purchasing the ability to send messages to their favorite Cheez content creators.

The downside of the COS token is that it currently has no value outside of the platform as it is currently not listed on any exchanges.  Mick Tsai, the founder of Contentos claims:

We’re planning to list COS on a top-tier crypto exchange later this year so that LiveMe and Cheez users will be able to trade with other cryptocurrencies or fiat.

Social Video App Cheez Now Offering Cryptocurrency Rewards

Some Cheesy Criticisms

Besides the reward ceiling, there are a few other notable criticisms of the new integration.

The largest of those criticisms being that Contentos, while claiming to be focused on creating a decentralized ecosystem for mobile content, is ironically launching the new Cheez cryptocurrency integration system on a centralized server. Because of this, fees and GAS costs generated by transactions between the Cheez app and the user’s cryptocurrency wallet must also be covered by the user.

Others feel that this new system is not an actual use-case and that it is just a way for Cheez to attract attention and new users by using buzzwords like “blockchain” and “cryptocurrency.” Many mobile app companies are chasing this trend, like mobile chat company Kik.

Will you be trying out the new Cheez rewards system to earn some extra cryptocurrency? Let us know your thoughts in the comments below!


Images courtesy of Shutterstock

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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!


Images courtesy of Shutterstock

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Čvc 11

Ethereum Price Analysis – Plus NEO, EOS, ADA, XRP

As prominent economists sound the death knell for cryptocurrencies and technical analysts label the current events as part of the bottoming process, investors have one question in mind. Are cryptocurrencies nearly prepped for a turnaround or is this the next leg down in a 7-month bear market?


Market Overview

Cryptocurrencies continue to waver and fumble as a few prominent world economists forecast that governments will regulate bitcoin to death. Meanwhile, other experts predict that bitcoin will become a mainstream means of payment within the next decade. To date, droves of cryptocurrency investors are still wondering exactly where the much-hyped institutional investors are and, while positive weekly developments demonstrate that the platform for institutional investors is being constructed, these events appear to be having minimal impact on cryptocurrency prices.

In other news, the Bancor hack and failure of Bitcoin to stay above $6,750 appears to be dragging the entire cryptocurrency market to new lows, yet analysts and retail investors have spent the start of the week labeling the current technical setup as the bottoming for most cryptocurrencies.

Let’s have a look at the charts to see what’s happening.

ETH

Ethereum (ETH) price chart

After two days of trading outside the descending channel, ETH managed to pop above $500 for the first time in more than two weeks. Unfortunately, the Bancor hack and Bitcoin pullback appear to have directly impacted ETH’s momentum as it dropped below the 20 and 50-day MA and back into the descending channel.

At the time of this writing, ETH is down 10% and the daily chart shows the Stoch sharply descending from nearly overbought territory whereas the RSI dips into the bearish zone at 38. ETH now trades below the $450 support and could drop as low as the $400 – $420 area which was a June low. Below this point, ETH has support at $380 and $360.

NEO

NEO Price Chart

After pulling back from an impressive 20%+ rally last week, NEO now rests on the 20-day MA at $34.25 and the RSI on the 4hr chart shows the cryptocurrency attempting a turn around at 32 which has proven to be a zone where this particular altcoin stages a reversal.

Over the last few days, NEO has done the tango with the 50% Fib retracement level ($41 – $36.33) and the technical setup suggests a further decline in the near term. $33.66 serves as the most immediate support and at press time, NEO is holding above the 20-MA as interest in NEO appears to be increasing.

EOS

EOS price chart

EOS has taken quite a hit, down 13.18% at $7.39. EOS trades far below the 20 and 50-MA and currently rests on the $7.37 support followed by a softer support at $7. Failure to hold above $7 could see EOS drop as low as $4 where buyers are likely to show strong interest.

At the time of this writing, the RSI dips into the oversold region, and the Stoch had turned downwards with plenty of room to go which suggests further selling. In the event of a price reversal, EOS will encounter strong resistance at $9 where it previously struggled to overcome the descending trendline.

ADA

ADA price chart

Following the direction of other altcoins, Cardano (ADA) is also down 9.42% today and currently trades at $0.129 which is below the $0.1350 support. The closest support after this is $0.1253. The 4-hour chart shows both the Stoch and RSI beginning to reverse to possibly rise from oversold territory as ADA has aroused purchasing interest below $0.13. As Bitcoin continues to fall, ADA could drop as far as $0.11 which would be a good point to open a position as ADA should recover to the $0.15 resistance with ease once the current clouds clear up.

XRP

At the moment, XRP is suffering as it has finally fallen below the all-important $0.45 support and is down 5.90% for the day. Both the 20 and 50-day MA are below the 100 MA suggesting further decline as the most likely outcome. Yesterday’s drop from $0.48 pushed XRP below the 61.8% Fib retracement level, along with the $0.47 support and the cryptocurrency closed below the 100-day MA.

At the moment, both the RSI and Stoch are in bearish territory and for the time being, we do not see any entry points that provide an attractive risk-reward scenario as XRP has failed to attract buying interest even below $0.45.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX and CoinMarketCap. The charts for analysis are provided by TradingView.]

Where do you think altcoin prices will go this week? Let us know in the comments below!


Images courtesy of ShutterStock, Tradingview.com

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Čvc 06

European ETF Trading Behemoth Begins Trading Bitcoin and Ethereum ETN

Flow Traders NV, Europe’s largest exchange-traded funds (ETF) trader has begun buying and selling Bitcoin and Ethereum exchange-traded notes (ETN). The company becomes the first to reveal its participation in any cryptocurrency ETN. The big question now is, when will a Bitcoin ETF become a reality?


Buying and Selling Bitcoin and Ethereum ETNs

An ETN isn’t all that different from an ETF. The principal difference between the two is that ETFs are investments in funds that track the price movement of an asset whereas ETNs are more like investing in bonds.

Flow Traders is trading in the Bitcoin and Ethereum ETNs launched by XBT Provider in 2015 and 2017, respectively. XBT is listed in Sweden with an asset management portfolio north of $1 billion.

This news of a cryptocurrency ETN listed on a regulated exchange is perhaps the most significant virtual currency news since the emergence of Bitcoin futures trading in December 2017. For one thing, it is yet another investment vehicle that is right up the alley of institutional investors.

Many analysts and commentators have identified the entry of institutional money into the cryptocurrency space as the next milestone in the growth of the industry. Investment products like futures, ETNs, and ETFs provide a much more viable option for these investors than the usual cryptocurrency trading market.

Commenting on the development, Dennis Dijkstra, the co-CEO of Flow Traders NV said:

People underestimate crypto. […] It’s big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested – we know they are because we get requests.

Image result for Dennis Dijkstra

How the ETN Works

As a high-frequency trader (HFT), the company plans to hedge each trade as quickly as possible regardless of the direction of the Bitcoin and Ethereum price movements. To do this, Flow Traders is hedging its ETN with CME and CBOE futures contracts. All of these, in theory, should lower slippage while increasing liquidity.

According to Dijkstra, the approach holds immense benefits for the company. He did not provide any details concerning whether the Flow Traders will utilize Bitcoin or Ethereum to hedge each trade, however.

The Quest for Bitcoin ETF

With an ETN already a reality, perhaps a Bitcoin ETF might be a possibility in the not so distant future. So far, the United States SEC has remained unwilling to approve any of the Bitcoin ETF proposals it has received.

The narrative was that the emergence of futures trading would herald the dawn of Bitcoin. However, half a year has come and gone since then and still no favorable decision from the SEC has been forthcoming. In June 2018, two prominent firms; VanEck and SolidX decided to collaborate with the hope of standing a better chance to obtain the much sought-after SEC approval for cryptocurrency ETF.

Will the trading of Bitcoin and Ethereum ETNs help pave the way for a Bitcoin ETF? Let us know what you think in the comments below.


Images courtesy of Flow Traders, Shutterstock

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