Pro 15

3 Cryptocurrencies Decoupling From Bitcoin into 2019 (PAL, TRX, WAVES)

2018 was underwhelming compared to 2017. The bear market went into full swing and most cryptocurrencies lost over eighty percent. Bitcoin has begun decoupling from many cryptocurrencies including those having some of the biggest developments of 2018. WAVES, TRX, and PAL are three cryptocurrencies that have persevered through the bear market. These three projects exceeded expectations and even demonstrated an important decoupling from BTC.


Cryptocurrencies PAL, WAVES, and TRX Decouple

Even during the bear market, there were major events in many cryptocurrency projects. PAL, TRON, and WAVES all had major developments as many cryptocurrency projects were imploding.

TRX (Tron) which as of December 31, 2017, was not in the Top 15 cryptocurrencies had a very important year regarding development. The TRX team burned 1 billion tokens and launched their mainnet in May. The mainnet was further developed the following month with the release of Odyssey 2.0.

Odyssey 2.0 is intended to be a public blockchain that supports decentralized applications. TRX also announced a $100 million gaming fund to increase the development and use of TRX in games. These developments during the height of the bear market speak volumes about TRON’s team and their dedication. Their founder Justin Sun is an outspoken, well-educated, blockchain advocate who has been a great leader for the TRX project.

WAVES (Waves) has been the most notable cryptocurrency regarding decoupling from BTC. Bitcoin price 00 has struggled the prior few months having corrected over forty percent this month alone. WAVES is the self-proclaimed fastest blockchain platform with real-world solutions for trading on a decentralized exchange (DEX) and running smart contracts.

Instead of correcting with the majority of the market following BTC lower, WAVES has actually increased from $1.45 November 14, to $2.35 per coin as of December 14. What is more impressive is not the dollar value increase, but WAVES going from 25250 Satoshis to 72138 Satoshis during that same period. Increasing almost two hundred percent against Bitcoin even though BTC fell almost fifty percent.

PAL (PAL Network) would be considered the cryptocurrency “moonshot” on this list due to their tiny market cap. WAVES is ranked #22 with TRX being ranked #9 by market capitalization. PAL’s market cap at just under $2 million is less than 1/100th of WAVES and 1/400th of TRX’s. The multiple aspects that make PAL noteworthy.

They were selected from over 60 entrants to be a part of the PayPal Incubator. Their mainnet launch was moved up to the end of December, three months ahead of schedule. PAL partnered with major projects such as NEM, QTUM, DGX, and MEDX. Their CEO and Founder Val Ji-hsuan Yapwas was featured in Forbes Asia 30 under 30. Having under a $2 million market cap was interesting, but beating deadlines by months with a top tier CEO is noteworthy.

The cryptocurrency markets were miserable to watch if you were long on blockchain projects, ICOs, and BTC in 2018. Those who were shorting the market enjoyed a nice ride but all tides turn eventually. As 2019 approaches projects that disregarded market conditions and continued to persevere should be one’s HODL focus.

PAL (PAL Network) 

With a market cap under $2 million and impressive volume, PAL seems fairly intriguing at 00. Earlier this year the PAL team was selected among three others to be a part of the PayPal Incubator Singapore. This prestigious award and notoriety by PayPal demonstrate PAL’s long-term connections in the Asia region. PayPal was impressed enough to place them in their incubator program, but why?

PAL’s CEO and Founder, Val Ji-Hsuan Yapwas was awarded Forbes Asia 30 Under 30 award. This award by Forbes further compliments the notoriety provided to this cryptocurrency by PayPal. It seems the technology and notoriety behind PAL is primarily in Asia, even as their blockchain model tends to focus on the United States. Both Forbes and PayPal have taken an interest into PAL and their Founder/CEO.

Beating deadlines in a bear market means the team is very committed. Originally PAL’s mainnet was scheduled to go live in quarter one of 2019. This date has been moved up to the end of December. If history repeats, cryptocurrencies have a tendency to trend North in value as their mainnet approaches. Releasing PAL’s mainnet months early demonstrates the team’s confidence in their platform.

Partnerships create utility and project awareness in the blockchain space. PAL not surprisingly has partnered with many major key projects. The most notable ones include NEM, QTUM, DGX, and MEDX. The importance of PAL’s partnerships will be determined following their mainnet launch depending on the partners’ utilization of the PAL network.

With notable partners, an exceptionally important Founder and CEO, a team dedicated to beating deadlines, an early mainnet release, being selected by PayPal and Forbes, and having a market cap under $2 million makes PAL a noteworthy acquisition target for 2019.

TRX (TRON)

TRX recently re-entered the Top 10 Cryptocurrencies by market cap with some impressive bear market news. TRX Company recently announced a $100 million gaming fund. Providing this much financial support to develop dApps on your Odyssey 2.0 blockchain demonstrates your company’s commitment to the platform. This amount of financial support will clearly drive adoption and development on the platform. It is very surprising that TRX is able to commit this amount of money during the height of the bear market. It seems they are poised for dApp development in 2019 and possibly major adoption.

Justin sun

In May, Tron launched their mainnet. Odyssey 2.0 went live in June as TRX burned 1 billion tokens. These 1 billion tokens were valued at $50 million at the time of the token burn.  The most important developments for TRX this entire year was the combination of the mainnet and Odyssey 2.0. TRX stayed true to their roadmap even with the markets providing difficult conditions to stay positive about.

The CEO of TRX Company, Justin Sun, is a very impressive figure in the cryptocurrency space. He is the founder of TRX and has led his community and project on a well-planned journey thus far. Recently he stated he would “rescue” ETH and EOS developers from their failing platform. This is likely part of what he had in mind when they announced a $100 million development fund.

With a very progressive and active founder combined with a team that has met and exceeded deadlines all year, TRX is worth keeping an eye on.

With a market cap in excess of $800 million, TRX has the highest market cap on this list. Their price per cryptocurrency currently is 00. However, with an $800 million market cap comes very impressive technological developments. Their TPS (transactions per second) are far greater than Ethereum’s at 2000 TPS.

WAVES

The most noteworthy aspects about WAVES the past month has been their decoupling from BTC’s price movement. It has been commonplace for the majority of cryptocurrencies to trend north or south with BTC. However, more recent projects have become more independent of Bitcoin price movement. WAVES has been one of the market leaders in this decoupling.

The price of each WAVES cryptocurrency has increased from $1.45 to 00 the prior thirty days. The Satoshi increase is even more exciting haven gone from 25,250 Satoshis to 72,138 satoshis during that same period. The price of BTC and the majority of altcoins in the cryptocurrency market collapsed the prior month. However, WAVES trended upwards in dollar value and more importantly, BTC value.

WAVES is both a decentralized exchange and smart contracts platform. They pride themselves on their speed but what intrigues me most is their multifaceted platform. Many cryptocurrencies are created for a sole purpose. The WAVES platform has developed into something far more than just a decentralized exchange or just a smart contracts platform. Being multifaceted as a cryptocurrency has allowed WAVES to trend north while the majority of smart contract platforms have underperformed BTC as it went south in recent weeks.

Why Waves is the Best Option for Airdrops

WAVES has a market cap of $252 million and is poised for a strong 2019 following their decoupling from BTC the prior few months. Being multifaceted, WAVES can pivot when one business (ICOs) are undergoing regulatory changes to focus on their DEX. WAVES has a market cap that is over one hundred times larger than PAL’s as their platforms are much more developed.

Looking to 2019

Cryptocurrency bear markets have a tendency to last one to two years. The bull markets have statistically lasted under 3 months. This means the bear market is not necessarily over. However, the cryptocurrency markets as a whole have generally pumped as the halving approaches and passes. The BTC halving is under 540 days away.

The markets may not turn bullish tomorrow, this week, or even this year. However, it is very likely when the public least expects it, that they turn the most bullish.

The cryptocurrencies that focused on BUIDLing during this bear market period will likely be the ones to continue to exist and thrive through the next bull-run.

[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice.]

To read the Crypto King’s prior articles or to get in contact directly with him, you can on Twitter (@JbtheCryptoKing) or Reddit. The King is the founder of ANON and actively trades cryptocurrencies.


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Pro 13

Cambridge Study: ID-Verified Crypto Users More Than Doubled in 2018

The University of Cambridge Center for Alternative Finance says the number of verified cryptocurrency users has increased in 2018 despite the year-long bear market that has seen prices tumble more than 80 percent.


Retail Cryptocurrency Adoption is on the Rise

According to a study by the Cambridge Center for Alternative Finance, the number of verified cryptocurrency users has more than doubled in the first three-quarters of the year from 2017 figures. The study shows that there were 35 million authenticated cryptocurrency users as at the end of September 2018.

Cambridge University

This increase comes despite the bear market conditions that have characterized much of the year. According to Bloomberg, the study found that the majority of users are individuals and not business clients meaning that institutional adoption is still playing catch up.

Meanwhile, in places experiencing economic turmoil like Venezuela, citizens have been forced to switch to cryptocurrencies. For many of these people, borderless virtual currencies like Bitcoin can provide access to international payments and the global economy. The study notes:

Individuals can be hobbyists, retail investors, consumers, or users seeking a better investment or payment alternative.

The research also found a significant increase in the total number of cryptocurrency user accounts. However, it is important to note that a single user can control multiple addresses (i.e. digital wallets).

 Less than $100 in Bitcoin

In another report by Delphi, a Digital asset research company, only a few BTC wallets hold any significant amount of the digital currency, which supports the idea that retail investors are stocking up on small amounts – buying fractions of a bitcoin.

Of the 22.9 million addresses that contain BTC, 90 percent own less than a tenth of a bitcoin (~$340). The study also showed that 80 percent of those accounts contain less than $100 in BTC. At the same time, accounts with between 10 and 100 BTC own about 25 percent of the total bitcoins in circulation.

The growing number of verified users and number of active addresses, particularly with relatively small amounts, indicate the growing adoption of cryptocurrencies among the general population. Nevertheless, it’s not surprising that early adopters will reap the biggest rewards as Bitcoin and cryptocurrencies now seem to be going mainstream.

Do you think the increase in verified cryptocurrency users signals public confidence? Let us know your thoughts!


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Pro 12

Coinbase Slammed For Venezuela ZCash Airdrop Being an ‘Advertising Strategy’

US cryptocurrency exchange Coinbase has received intense criticism for giving Venezuelan families a grand total of $1 per day – in altcoin ZCash, which it added to its books days previously.


Scroogebase?

In a blog post December 11, executives claimed that the initiative dubbed the “12 Days of Coinbase,” was meant to “empower those who don’t have enough.”

Coinbase completed a rollout of ZCash 00 to its own traders December 5, the price of which currently sits at its lowest since April 2017.

“Recipients can purchase food and basic supplies at a local store that accepts payments in crypto, subsidizing everyday expenses — this $1 USD equivalent per day can buy 1–2 kilos of protein or 2-kilos of starches and vegetables,” the post reads.

The initiative will award 100 families $1 daily for three months via GiveCrypto, a spin-off enterprise from Coinbase CEO Brian Armstrong.

As soon as the plans went public, however, both Coinbase and Armstrong himself faced a barrage of negative publicity ranging from skepticism over their efficacy to outright disgust.

Starving Venezuelans Turn to Bitcoin Mining in Desperation

On Twitter, commentators, including those living in poverty-stricken Venezuela, said the priority of schemes such as this and that of fellow altcoin Dash 00 was not to help those in need but rather to market altcoins.

Venezuela, they suggested, was being used by $8 billion Coinbase as a guinea pig to serve its own aims.

“I do not see how donations from # cryptocurrencies help individuals in (Venezuela),” José Rafael Peña, editor of Spanish-language cryptocurrency news outlet CryptoNoticias wrote.

I have seen so many campaigns to give away crypts to individuals, that I only see it as an advertising strategy for those who plan to donate them.

‘You Piece Of Sh*t’

Others were much more damning.

Addressing Armstrong, software developer Udi Wertheimer lambasted what he viewed as a display of miserliness.

“The ‘Venezuela meme’ has been overused by ‘crypto’ scammers for years now, but I’m shocked to see Brian do the same,” he tweeted.

“Giving $1-worth of Zcash to Venezuelan families? (Get the f*ck out). Give them USD cash you piece of shit. Unbelievable[.]”

Coinbase’s publicity woes had continued from last week. Publishing an article about the exchange’s plans to introduce 30 new altcoins to its books, TechCrunch – perhaps inadvertently – gave it a URL describing Coinbase as “dabbling in shitcoins.”

The move became an incongruous hit on social media, seeing comments from some of the cryptocurrency industry’s best-known names.

What do you think about Coinbase’s charity giveaway? Let us know in the comments below!


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Pro 05

Tether Dominance Of Stablecoin Market Falls To 74%

As 2018 began, with only two competitors, Tether commanded 94 percent of the stablecoin market. With the year seeing the emergence of 8 new players in the space, that dominance has fallen to 74 percent.


Flood Waters

It seems that the cryptocurrency du jour is the US Dollar, or at least the stablecoins pegged to it. This year has seen a wealth of new offerings flood to market, causing exchanges to reassess how to list them.

Huobi added its own stablecoin to the fray, with the launch of HUSD. This is interchangeable with and amalgamates Paxos, TrueUSD, USDCoin, and Gemini Dollars, allowing deposits and withdrawals for no conversion fees.

Binance also introduced changes, to clearly identify markets with stablecoin pairings.

Chip Chip Chipping Away

Forgetting the headline figure, 74 percent is still a full three-quarters of the market, which is quite significant. On average, each new competitor eroded less of Tether’s market share than the original two.

Which illustrates the value in this case of being first to market, compared to the comparative value of your product. Despite the continuing criticism and scrutiny of Tether, it maintains a market share that its competitors are all vying for.

Stablecoins Aren’t Going Anywhere

Stablecoins are certainly divisive. The touted benefits are questioned as often as they are lauded. Are they just the answer to a problem that nobody really had in the first place? Or are they a necessity in the evolution of crypto?

Either way, they are fast becoming a permanent fixture in crypto-news and shaping the current crypto-landscape. As more and more players continue to move into the market, stablecoins are clearly the current craze in the nascent industry that has struggled as a whole against the USD in 2018.

What remains to be seen is the ongoing impact of this on Tether. Will each new project continue to nibble away at its market share? Will a plucky young upstart find enough popular support to launch a serious uprising and eventually usurp the king? Or will the overcrowded throng of hungry contenders start to cannibalize each other’s piece of the pie?


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Pro 04

Binance to Launch Binancechain For ‘Millions of Coins,’ CEO Confirms

The world’s largest cryptocurrency exchange by means of traded volumes will be launching its own public blockchain in “a couple of months or so,” according to its CEO, Changpeng Zhao. 


‘There Will be Millions of Coins and Thousands of Blockchains’

Speaking at the stage of Forbes Asia Forum: Decrypting Blockchain, the CEO of the Binance Changpeng Zhao (CZ) revealed that the company’s public blockchain dubbed Binance Chain will be released very soon – within the next “couple of months or so.”

Covering CZ’s talk at the event was Forbes’ staff reporter, Michael del Castillo, who quoted the CEO saying:

We are launching Binancechain very soon, in a couple of months or so, and you will be able to issue tokens on that… I think there will be millions of coins and thousands of blockchains.

Naturally, CZ’s words immediately provoked a wave of users questioning the need of so many cryptocurrencies and blockchains. It’s will also be interesting to see how Binance will handle and vet the “millions of coins” given CZ’s previous statements. In August, Zhao stated:

We don’t list shitcoins even if they pay 400 or 4,000 BTC. [Ethereum, NEO, Ripple, EOS, Monero and Litecoin and more] listed with no fee. Question is not ‘how much does Binance charge to list?’ but ‘is my coin good enough?’ It’s not the fee, it’s your project! Focus on your own project!

Binance Tatoo Shows ‘Commitment’

CZ also refused to provide any predictions on the price of Bitcoin 00 under the pretense that his words will be taken as manipulation. He said:

I try not to predict the future bitcoin price because anything I say will be seen as manipulation. So I lost that part of free speech.

Meanwhile, Zhao revealed getting a tattoo of the Binance logo on his forearm as a sign of absolute commitment.

In a Medium post explaining the idea behind the logo and CZ’s decision to get the tattoo, he also shared his thoughts on listing coins on Binance and how founders’ dedication is one of the things they are looking for in order to have a coin listed.

Apparently, permanently marking one’s body and infusing it with ink with the Binance logo should inspire confidence that the CEO is committed and in it for the long haul.

What do you think of Binance chain? Don’t hesitate to let us know in the comments below!


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Pro 01

WePower (WPR) – Why It’s Poised to Outmuscle Bitcoin in December

WePower (WPR) is in the spotlight this week for bridging green energy and blockchain technology. WPR looks like a solid contender to outperform Bitcoin returns in December.


Niche Cryptocurrencies

Every week provides new opportunities to find undervalued cryptocurrencies. These cryptocurrencies can produce returns far in excess of BTC. As BTC looks to recover from recent slumps many altcoins should trend with it. This week is no different as WePower (WPR) stands out for numerous reasons.

Cryptocurrencies that solve an issue plaguing society by integrating the blockchain are the most successful. BTC 00 has been the dominant digital currency but many others have emerged that do specific things. These ‘niche’ cryptocurrencies have a tendency to provide the highest returns.

Here’s a look at what is expected of the top three digital currencies for the remainder of 2018, to help you make an informed trading decision.

Think Ethereum (ETH) going back a few years. ETH 00 was one of the original ICO platforms, which filled the niche of launching blockchain cryptocurrencies and projects. The presale ICO price was $0.30. That means every $30 ETH goes up from $0.30, the presale purchasers make 100x. At a price of $300, the ICO purchasers made 1000x. For every dollar invested they made $1000. Returns like this should not be anticipated. However, returns far in excess of BTC’s are more simple to attain if focusing on niche markets.

Previously cryptocurrencies like GoChain were highlighted and subsequently returned in excess of 200%. Many other niche cryptocurrencies were highlighted in the weeks prior and will be analyzed in weeks to come.

One thing became increasingly clear, niche cryptocurrencies, on large exchanges, with depressed market caps have a tendency to pump strongly against BTC.

This points to one specific cryptocurrency this week: WePower (WPR).

What is WePower?

 What is WePower? WePower (WPR) 00 is a blockchain based green energy trading platform. WPR fuels renewable energy production by enabling developers to raise capital by selling their production up front in the form of tradeable Smart Energy Contracts.

WPR is one of the few cryptocurrencies that enables corporate energy buyers to contract energy directly from green energy producers at below-market rates. What is most impressive is their next generation trading platform. Eventually, this platform will allow P2P (person to person) instead of just B2B (business to business) transactions.

To access the WePower platform, the native token WPR must be used. WePower created a niche market for the transmission of green energy and to interact with the platform the WPR token must be used. This creates actual utility for the WPR token. WePower has the platform, the utility, the niche, a market, and the necessity the world faces to counteract raising global temperatures.

Many complain that blockchain technologies are destroying our environment. Recent estimates predict more than 1% of global electricity is going toward ‘mining’ digital currencies. However, WPR is the blockchain niche that is different. They are facilitating the trading of green energy in a transparent manner.

Quarter 3 & Quarter 4

Quarter three saw WPR conduct a countrywide energy tokenization test across Estonia, successfully. The WePower platform also underwent significant testing in July and can now be interacted with online.

Quarter four is more exciting with WePower becoming operational in Spain, Estonia and Australia resulting in WPR soaring to above 700 Satoshis. BTC almost immediately fell and WPR corrected with it. The most important quarter four event and news is yet to come, which is specifically why WPR is in the spotlight this week.

WPR plans to distribute donated green energy amongst their token holders in December. For those interested in WPR the timing to accumulate would be prior to this event as it comes with ‘free’ green energy. WePower wants to demonstrate their platforms functionality and utility.

What better way is there than donating energy to token holders to demonstrate the actual utility of the WPR?

WePower’s team is composed of over 60 individuals and they are currently concentrating their business in Australia. Even as this bear market has stifled progress in the space, making financing increasingly difficult to come by, WPR has been hiring and building. Out of thousands of cryptocurrencies that let their projects become obsolete in prior months, WPR has done the opposite.

In the last two months, WPR has added a Chief Information Security Officer, Michael John, the former Director of Operations at the European Network for Cyber Security. The engineering team in Tallinn added Head of Products along with engineers from the top energy projects in Europe. Beyond engineers and security officers, WPR also added data scientists and advisors to guarantee they are prepared with their platform.

While most projects have remained stagnant through this bear market WPR has positioned themselves for success in December and quarter one of 2019. With WPR peaking above 700 Satoshis following operations beginning in Spain, Estonia and Australia this number should be well within reach as the date of energy distribution approaches.

WPR is one of the niche cryptocurrencies that if they can continue to meet their roadmap deadlines should see their minuscule market cap trend upward. With a target of 700 Satoshis by the end of December WPR could be in line for over a 50% climb in the short term.

Conclusion – WePower the Future 

When all the attention is focused on one aspect of cryptocurrency, divert yours to another. This week Floyd Mayweather and DJ Khaled made headlines for their promotion of ICOs. Individuals fascinated with cryptocurrencies have been puzzled with BTC’s retraction to under $4,000. This is the ‘news’ that is meant to distract.

The next few months have major events including almost every major U.S. exchange getting involved in the trading of Bitcoin and cryptocurrencies. Now is the time to DYOR (do your own research) and find the needle in a haystack cryptocurrency.

The needle in a haystack found this week was WPR. One of the few cryptocurrencies poised for success with a functioning platform, impressive team, continuous expansion, and an actual niche market.

There are plenty of sh*tcoins and scams in crypto. Instead of spreading animosity in the space it is better to focus on strong products with teams that represent leadership in the blockchain industry.

WPR demonstrates leadership in both blockchain and green energy.

To read the Crypto King’s prior articles or to get in contact directly with him, you can on Twitter (@JbtheCryptoKing) or Reddit. The King is the founder of ANON and actively trades cryptocurrencies.

[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice.]


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Lis 29

Simplicity Language to Give Bitcoin Ethereum-Like Smart Contract Capabilities

Simplicity, a combinator-based, typed, and functional language for blockchain applications can reportedly enable Bitcoin’s Script language to handle more complex yet reliable smart contracts.


Bitcoin Script Language is Limited, For Now

According to a new research from Blockstream on Simplicity – a blockchain applications language – distributed ledgers pose a range of unique challenges, which make traditional programming languages unfit.

What’s more, Bitcoin’s Script language is limited to certain combinations of signature checks, hashlocks, and timelocks. Second layer solutions, on the other hand, such as the Lightning Network, for example, have been built on these primitives and, hence, lack the necessary expressiveness for more complicated smart contracts.

The paper also cites a recent upgrade failure of Ethereum’s EVM (Ethereum Virtual Machince), caused by a disagreement of implementations on the results of a certain computation, resulting in lost funds.

When Smart Contracts Act Stupid: Is Your ICO Smart Contract Safe & Secure?

Simplicity: Complex Bitcoin Smart Contracts

According to the research, Simplicity is capable of providing the necessary flexibility for a wide range of computations, while, at the same time, allowing users to verify the security, costs, and safety of smart contracts.

Furthermore, the low-level programing language is also purportedly capable of solving certain previously required tradeoffs between reliability and expressiveness.

As it stands now, developers are either able to build a complex yet unreliable smart contract (think The DAO) or they are able to build a basic but reliable one. Thus, Simplicity would make make it easier to write complex smart contracts that are more reliable.

It’s also worth noting that this isn’t the first project which aims to enable effective smart contracts for Bitcoin’s network.

The potential solution has already caught the attention of Bitcoin investor Trace Mayer who said the Simplicity language “can help take things to a whole new level.”

You can check out the technical detailed report on Simplicity here.

Earlier in May, Bitcoinist reported that the RSK project, which intends to build Turing-complete smart-contract capabilities for Bitcoin. RSK has partnered up with iExec in order to deliver off-chain computing and to enable dApps to access on-demand cloud computing resources.  

What do you think of Simplicity’s ability to enable complex smart contracts on Bitcoin’s network? Don’t hesitate to let us know in the comments below!


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Lis 27

FCA Investigations Into Crypto Businesses Have Doubled Since May

FCA (Financial Conduct Authority), UK’s Financial watchdog, has doubled the number of investigations into cryptocurrency companies to 50 since May 2018.


FCA Increasingly Looking at Crypto Firms

According to Top Ten accountancy firm, Moore Stephens, the Financial Conduct Authority (FCA), has doubled the number of investigations into crypto related businesses in the UK since May of this year. This takes the total number up to 50 as of October 2018 against a backdrop of increased regulatory scrutiny.

FCA Urges UK Banks to Adopt Robust Security Measures Against 'Risky' Cryptocurrency Business

According to the UK’s 9th largest accountancy firm, failure to correctly address existing problems in the crypto community could lead to heavy regulation in the future.

Moreover, the latest plunge in the price of bitcoin 00 and a massive drop in the value of all major cryptocurrencies has further shed light onto concerns that the market is not properly regulated. This has also caused a surge in the number of complaints to the FCA.

The FCA Isn’t Messing Around

Often accused of regulatory indifference or moving at a glacial pace, it seems that the FCA is finally taking a serious approach to cryptocurrencies. One of the key focuses of their investigation is on closing down unauthorized businesses. These are the types of companies that hold ICOs to raise vast sums of money by using unregulated loopholes.

Tighter regulation in the future is a concern to many in the industry as it is widely believed that restrictive regulation could be inhibitive to innovation. Partner at Moore Stephens, Andrew Jacobs, explains:

The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA.

He goes on to add that the rise of Bitcoin and other altcoins’ prices had attracted interest from many “enterprising firms” who aren’t conducting themselves by the book. Now the market has all but bottomed out, this is a problem.

Now that prices have collapsed, fraud and other suspicious activity are likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly, with investor protection embedded at its heart. The FCA is now clearly looking to get out in front of potential issues related to cryptocurrencies in order to more effectively manage their risk.

A Properly Regulated Environment

Regulation is still a topic that splits the crypto community down the middle. While many argue that lack of regulation causes problems, Jacobs believes that an environment that is correctly regulated is crucial to building confidence in cryptocurrency for both retail investors and institutions alike. He says:

It is important that any new regulations don’t choke competition in the market to the point where cryptocurrencies become ineffective. Walking this line will be key in helping to establish the UK as a cryptocurrency hub in Europe.

The UK’s FCA released its Cryptoassets Taskforce report in October. The report includes the actions that it will take to mitigate risks with cryptocurrencies, including the correct classification of cryptocurrencies–and which ones fall into the perimeter of the FCA, whether or not the FCA will need to regulate all cryptocurrencies, and an extra section on the need for regulation of e-wallet providers and exchanges.

Will a regulated environment benefit the cryptocurrency industry? Share your thoughts below! 


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Lis 24

Cryptocurrency Winter Special: Two to HODL and One to FODL

This week provides another opportunity for a cryptocurrency HODL vs. FODL analysis. With Black Friday having just passed this is the perfect opportunity to do some shopping.


Cryptocurrency Winter is Here

BTC 00 having fallen more than 30% in the prior week has brought many cryptocurrencies lower with it. However, with a lower BTC comes cheaper cryptocurrencies. This week two cryptocurrencies are highlighted as HODLs: DOCK and VET. With DOCK likely to have the most significant gains of those on this list in the short term. Unfortunately, Bitcoin Gold is highlighted as the FODL of the week.

As the cryptocurrency market progresses through 2018 it is important to distinguish which cryptocurrencies are HODLs (acquisition targets) vs FODLs (possible sells).

The prior months have seen niche market cryptocurrencies trading on major exchanges highlighted. This week 2 HODLS are highlighted: a small cap cryptocurrency and larger cap both in their own respective niche market.

DOCK is one of the smallest market cap cryptocurrencies on Binance providing platform users with ownership of their data. VET is a Top 20 Cryptocurrency by market cap, which specializes in supply chain management.

Both of these coins represent the HODLs of the week. DOCK with a market cap a fraction of VET is likely to post higher returns than VET. VET is the ‘safer’ play while DOCK is more ‘high risk, high reward.’

Bitcoin Gold represents the FODL of the week. BTG is a hardfork of Bitcoin, which allows GPU miners to ‘mine’ the BTG fork instead of the ASICs that are used to mine BTC. GPU mining capability is the predominant benefit of BTG, though that is not enough to keep it relevant in the crypto space.

When analyzing cryptocurrencies, it is important to determine if they are acquisition targets (HODL) or if they are relatively irrelevant in the space (FODL).

DOCK would be the cryptocurrency for those wanting a higher risk, very high reward potential coin. VET is a much lower risk given its substantial list of partnerships but is likely to return a lower percentage based on its market cap. BTG seems to be fading into irrelevancy as their sole purpose is GPU mining of a Bitcoin fork.

DOCK

DOCK 00 has landed on the HODL radar for a plethora of reasons. With a $5.5 million market cap, DOCK has one of the lowest market caps on Binance. DOCK was added to Binance at the end of July during the height of the bear market. It is almost as if the public did not even notice.

When DOCK was added to Binance the price shot up to over $0.07. With the price currently hovering around $0.01 that is an 86% correction since July 30, 2018. Having corrected such an astronomical amount in just the last two months DOCK seems to be poised for a breakout.

What makes DOCK qualify as a niche coin among many cryptocurrencies is what their platform stands for. DOCK gives individuals ownership of their data, specifically rewarding them in DOCK. This allows the user to connect multiple social media accounts through one portal while securely storing your personal data in the cloud. The information you wish to share from the cloud will be rewarded based on what it is.

Currently, we provide free internet data to many corporations by just browsing. Why not be paid for that same data?

The benefits of the DOCK platform are not just for the user. Yes, it is more simple to have all your social media accounts logged in via one platform. Yes, it saves time to be able to pick and choose which aspect of your data can be seen by the public wishing to pay for it. However, the benefits are far greater than one would imagine.

Advertisers can tailor adverts to their consumers without wasting money on uninterested demographics. Users will not be bombarded with adverts unrelated to their lives. Time and money are saved by all parties with platform users receiving the most benefits.

DOCK is an ERC-20 token that has found a way to pay users for the data they had previously shared anyways. It is essential to be able to protect your private information in the cloud, DOCK not only protects it, but it also allows you to profit from of it. If there was a high risk, high reward cryptocurrency to accumulate prior to the bull run, DOCK is one of the top contenders!

This week’s market correction has forced DOCK down another 30% positioning it perfectly for a rebound and this week’s top cryptocurrency.

VeChain (VET)

VeChain (VET) 00 is one of the larger cap cryptocurrencies that has solidified itself as a ‘niche’ specialist.

VET specializes in supply chain management and for the majority of 2018 had a market cap in excess of a billion. Unfortunately, VET has corrected with the rest of the cryptocurrency space and has fallen to the #20 spot on CMC with an impressive list of partnerships.

Partnerships and platforms result in long-term relevancy. VET has an impressive platform, and a more impressive list of partners: DNV (specializing in audits), PriceWaterhouseCoopers (Big 4 Accounting Firm), National Research Consulting (Fortune 1000 Company), Chinese Government (Gui’an New Economic Area), Republic of Cyprus, and BMW. VET has aligned with the largest manufacturers, governments, and companies to ensure the world can take advantage of blockchain supply management technology.

Even with a list of partners who dominate industry VET has continued to slide down the list of largest market cap cryptocurrencies. VET is #20 while BTG is #19. VET has a bigger community, better partnerships, and more niche platform than the majority of cryptocurrencies, especially in the Top 20. Of the cryptocurrencies that make up the Top 20, VET seems most poised for a break out when BTC price stabilizes.

A niche market, partnerships that would make Fortune 500 companies jealous, being on the cutting edge of technology, and a market that has just fallen 70+% all make VET a highly attractive cryptocurrency. Will the returns be as high as DOCK’s? It is unlikely. VET will likely remain a Top 20 Cryptocurrency for years to come while DOCK could fade into oblivion following a major bull run.

Bitcoin Gold (BTG)

It is never fun to discuss cryptocurrencies that one should FODL, but this week it is Bitcoin Gold (BTG).

BTG 00 exists because miners of the BTC network wanted to use GPUs instead of ASICs. BTC went through a hard fork (similar to what they experienced with Bitcoin Cash) resulting in BTG, allowing GPU mining.

However, the cryptocurrency space already has thousands of coins and the ability to mine a BTC knockoff using GPUs is not an important enough reason for BTG to exist.

Any person with GPU miners could mine the highest paying GPU coin, sell the underlying coin for BTC and voila! Problem solved.

The miner is, in essence, mining the real BTC by mining an altcoin and having the user sell it for BTC. There is no need to mine BTG directly instead of a higher paying altcoin and then selling the altcoin for actual BTC.

Recently people have been discussing how Bitcoin has no value because it is infinitely replicable. But this is not true.

Designer purses are also infinitely replicable but each purse that is not ‘genuine’ is fake, a replica, and their value is subsequently impacted. BTG is not BTC regardless of similarities. Mining BTG using GPUs provides the same benefit as mining any other cryptocurrency using GPUs. BTG has no real purpose and is another of BTC’s many unnecessary forks.

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With a market cap over $250 million, BTG makes up the #19 spot on CMC. This is surprising as it is one spot ahead of VET. BTG has no long-term viability and minimal partnerships when compared to VET.

Solutions exist to mine using GPUs and earn returns in BTC too. There is no reason BTG needs to be that ‘solution’ leading to a market cap larger than VET’s.

The Verdict

Cryptocurrencies that are focused on niche markets that need a blockchain solution are those that are most likely to survive. Those that have partnerships with thriving Fortune 500 companies are the blockchains of tomorrow. The smaller, lesser-known ones, are the cryptocurrencies that could pull off the next 20-100x.

DOCK is the cryptocurrency on this list that has true ‘moon’ potential. If DOCK’s market cap rivals VET’s that means HODLers of DOCK would enjoy a 50x (comparing market caps). Smaller market cap cryptocurrencies are the ones that have the ability to penetrate the Top 20 while having a huge rise in market cap.

Verdict: HODL

VET is perfect for those that enjoy lower-risk cryptocurrencies but want to remain well diversified in unique blockchain niches. Already having a market cap over $250 million VET has the potential to provide significant returns. As VET continues to partner with companies many are familiar with expecting the price to begin to appreciate with the turn of the market.

Verdict: HODL

BTG is a cryptocurrency maintaining a Top 20 spot among all cryptocurrencies when it is fairly irrelevant. The benefits BTG provides are minimal and those that wish to mine BTC using GPUs can mine a more profitable alternative, and sell it for BTC.

Verdict: FODL

[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice.]

To read the Crypto King’s prior articles or to get in contact directly with him, you can on Twitter (@JbtheCryptoKing) or Reddit. The King is the founder of ANON and actively trades cryptocurrencies.


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Lis 22

Kraken ‘Named’ in SEC Investigation, Calvin Ayre Claims as Bitcoin Cash Forks Go Live

The controversy surrounding the Bitcoin Cash (BCH) hard fork is increasingly engulfing cryptocurrency exchange Kraken as the altcoin’s proponents take aim at its treatment of its two forks.


Deposits, Withdrawals And Up To 30 Confirmations

After BCH split into ABC and SV forks, Kraken opted to keep the BCH ticker to describe ABC, crediting users with SV tokens while describing it as an “extremely high risk investment.”

SV has suffered a tumultuous first few days as a standalone fork of BCH, a blockchain reorganization sparking claims of overt centralization from some of Bitcoin’s best-known names.

Since trading opened on Kraken, SV tokens have changed hands for less than $30. Deposits and withdrawals begin today, subject to 15 confirmations for ABC and 30 for SV.

Ayre: Kraken ‘Mentioned’ in SEC ‘Investigations’

Retaliating on social media, SV proponent Calvin Ayre hit back at Kraken’s decision to use the BCH ticker for rival chain ABC, further claiming that both entities were part of unnamed legal proceedings by US regulators.

“(My) current prediction is that ABC chain will collapse and BCH will remain Satoshi Vision as the most likely outcome of the hash war,” he wrote on Twitter November 21.

Criminal and SEC investigations are under way in the US based on docs leaked to us. Kraken named also.

bitcoin cash calvin ayre

Ayre did not provide evidence for the accusations, which he’s promising to release “next week.”

While Kraken has yet to publicly react, Ayre’s words could well end up buried beneath the mountain of rhetoric, which has emerged on social media from all parties in the BCH debacle over the past week.

SV sources have been particularly vocal, nChain chief scientist and self-proclaimed Satoshi Nakamoto Craig Wright accusing ABC’s lead figures of myriad transgressions.

“You are my enemy,” he allegedly told Bitcoin.com owner Roger Ver in an email before the hard-fork.

BCH recorded the biggest drop of all the top twenty cryptocurrencies by market cap over the past 24 hours at around 7.5 percent, data from Coinmarketcap shows.

What do you think about Calvin Ayre’s accusations? Let us know in the comments below!


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