Hodler’s Digest, Jan.7–13: Top Stories, Price Movements, Quotes and FUD of the Week

Top Stories This Week

Altcoin Ethereum Classic Reportedly Undergoes 51 Percent Attack

Earlier this week, the Ethereum Classic (ETC) reportedly underwent a 51 percent attack. In the aftermath, crypto exchange Coinbase noted that upwards of $1.1 million in crypto was double spent during the time of the deep blockchain reorganization. Coinbase and several other cryptocurrency exchanges temporarily paused deposits and withdrawals of the altcoin to prevent loss of funds. Crypto exchange Gate.io confirmed that the attack was carried out and promised refunds, stating that around 54,200 ETC in total (worth around $271,500 at the time) was transferred during the attack. However, Gate.io also reported later that $100,000 was returned to them with no explanation, prompting rumors of participation by a white hat hacker.

Coinbase, Square Cash App Reported Bans Accounts of Social Media Platform Gab Founder

This week, the social media platform Gab announced that both Coinbase and the Square Cash app had banned the personal account of Andrew Torba, the founder of Gab. As reported earlier last year, Gab.com’s business account on Coinbase had already allegedly been closed in December. The blocking of Torba’s Square Cash account occurred after the reported Coinbase block, and also after Gab sent an email to its user base promoting both the Cash App and Bitcoin. Gab is a social media platform that promotes itself as a place for free speech, becoming in effect a draw for those blocked on other platforms for hate speech concerning right wing extremism.

Addition of Monero Payment Option to Fortnite Merch Store Was Accidental

The CEO of Epic Games, Tim Sweeney, said this week that the addition of altcoin Monero (XMR) as a payment option for the Fortnite merchandise store was an accident. The store, called Retail Row, accidentally began accepting the altcoin on Jan. 5, according to tweets from developer Riccardo Spagni. Sweeney, denying the rumors, said this week that the addition of Monero was unintentional, and that staff have since removed the privacy-centered altcoin from the store’s payment option. Sweeney also denied that Epic Games had partnered with crypto payment processor GloBee.

Analysts Say BTC Whale Activity Could Move Market as Dormant BTC Wallets Revive

A number of long-dormant Bitcoin wallet have seen an uptick recently, Bloomberg reported this week, which could mean that major BTC whales might influence the crypto market. According to analysis from crypto analytics startup Flipside Crypto, several long-inactive BTC holders have begun to move their coins, meaning that wallets active over the past 30 days now hold about 60 percent of total BTC supply. Similar wallet movement preceded Bitcoin’s major historical price volatility in both 2015 and 2017 — in the latter year, the coin surged to all-time price highs of $20,000.

Winklevoss Twins Express Commitment to Bitcoin ETF During Reddit AMA

Cameron and Tyler Winklevoss doubled down on their commitment to getting a Bitcoin (BTC) ETF approved during a question and answer session on Reddit’s Ask Me Anything (AMA) subreddit this week. The twins also showed support for specifically Bitcoin, referring to it as “the OG crypto” and calling it “the winner in the long term.” Tyler Winklevoss also underlined the importance of blockchain versus cryptocurrencies, noting that they need each other in order to exist.

Winners and Losers

The cryptocurrency markets are holding steady at the end of the week, with Bitcoin trading at around $3,670, Ripple at around $0.33 and Ethereum at around $126. Total market cap is around $122 billion.

The top three altcoin gainers of the week are BDT Token, CariNet and Simmitri. The top three altcoin losers of the week are SoundDAC, AgaveCoin and WhaleCoin.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story,” — Ardo Hansson, governor of Estonia’s central bank and member of the Governing Council of the European Central Bank, about crypto

“We believe bitcoin is better at being gold than gold. If we’re right, then over time the market cap of Bitcoin will surpass the ~7trillion [sic] dollar market cap of gold,” — Tyler Winklevoss, co-founder of Gemini, during Reddit AMA

“Some self-proclaimed Bitcoin Maximalists are actually Bitcoin Extremists. They think all other coins are scams and will go to zero. Maximalists think Bitcoin is and will remain the dominant cryptocurrency but there is room for altcoins to exist and even do well,” — Charlie Lee, Litecoin (LTC) founder

“Bitcoin has the potential to be worth a lot and to be worth zero,” — Bill Miller, noted Wall Street investor

“Ripple took a contrarian view on a bunch of things pretty early right and that made us unpopular among the die-hard crypto community. In the face of those kind of arrows, though, I still have conviction that we’re on the right path,” — Brad Garlinghouse, Ripple CEO

“You hear all the bulls**t out there, oh, this does 10,000 transactions a second. It’s all crap. We were going to melt TRON. Literally destroy it,” — Simon Morris, former Bittorrent employee, speaking about Tron’s tokenization

Prediction of the Week

“The reality is it’ll probably trade sideways between $3,000 and $5,000 for another month or two while it’s trying to find which way to go,” — Vinny Lingham, CEO of blockchain identity platform Civic

FUD of the Week

Former BitTorrent Executive Claims Tron Won’t Be Able to Manage BitTorrent’s Token

Simon Morris, the former chief strategy officer at BitTorrent, said in an interview this week that Tron doesn’t have the capabilities to manage the transaction volume that will be needed to tokenize BitTorrent. Morris said that his team needed hundreds of transactions per second just to get started, and that Tron would only be able to manage the volume if they manage BitTorrent transactions on a central server and pretend it is Tron-based. A Tron representative told Cointelegraph that “Morris appears to have little insight into BitTorrent operational plans since his departure.”

Fourth Indian Suspect Arrested After $70 Million Cryptocurrency Scam

Police in India have arrested a member of a group that has been accused of conducting a cryptocurrency scam involving 5 billion rupees (around $71.6 million) this week. The case is ongoing, and this is the fourth arrest in connection with the alleged scam involving a token, dubbed Money Trade Coin (MTC). According to the police, the group artificially inflated the price of the token in order to prop up investments, leaving investors unable to sell the token when the price fell.

Hackers Take Over Belgian Non-Profit Twitter to Tweet Fake Coinbase Giveaways

The Federation of Enterprises in Belgium (FEB) had their Twitter account hacked this week and made to resemble an affiliate account of major United States crypto exchange Coinbase.  After the hackers tool control of the FEB’s Twitter, they proceeded to tweet scam giveaways, offering followers a large amount of crypto if they send a small amount first. In this case, the hackers offered both 3,000 BTC and 30,000 BTC in an apparent typo to their followers. The Coinbase branding has since been removed from the Twitter account.

Best Cointelegraph Features

Ethereum Classic 51% Attack — The Reality of Proof-of-Work

In the wake of the confusing and sometimes contradictory media coverage of the 51 percent attack on the Ethereum Classic network this week, Cointelegraph’s looks at the questions brought up over how security and power of proof-of-work (PoW) algorithms should and do function.

What We Know About Yellow Vests’ Bank Run and How Crypto Could Help It

As the protests in France against the government continue, a call for a run on the banks has brought up parallels between the protestors’ goal to show the vulnerability of those in traditional positions of power, and crypto’s aim to create a parallel financial structure unconnected with traditional finance.

From Bitconnect to SIM-Swap Swindling: 2018’s Biggest Scams

In the beginning of 2019, Cointelegraph takes a look back over the past year’s most memorable scams, including the fall of Bitconnect and the rising phenomenon of SIM-swapping.

Article First Published here

Hodler’s Digest, Dec. 24–30: Top Stories, Price Movements, Quotes and FUD of the Week

Top Stories This Week

Nvidia Faces Class Action Lawsuit Over Losses After Lower GPU Mining Demand

Graphics processing unit (GPU) producer Nvidia is currently facing a class action lawsuit over losses that the company reported when lower crypto prices lowered demand for GPUs by miners. The Schall law firm announced the lawsuit this week, with the complaint alleging that Nvidia made false and misleading statements to the market. Schall noted that since the GPU producer claimed that drop off in demand for GPU on miners would not negatively affect the business, the lawsuit has merit.

Altcoin Bitcoin Private Team Confirms 2 mln Additional Coins Were Secretly Premined

The development team for altcoin Bitcoin Private (BTCP) has confirmed this week that 2.04 million units of BTCP were created that were never intended to exist on the altcoin’s blockchain. Following a report in late December from a digital asset analytics website that revealed the discrepancy, the BTCP team launched an investigation that eventually found that the extra coins had been mined, but they do not yet know who created the coins and for what reason.

South Korea Rules in Favor of Bithumb After Investor Lawsuit Over $355,000 Hack

South Korean court has ruled in favor of crypto exchange Bithumb in a lawsuit in which an investor had sued the exchange for his loss of around $355,000 in an alleged hack. Ahn Park alleged that he had been the victim of a hack of his Bithumb account on Nov. 20, 2017, which resulted in the aforementioned loss, and cited Bithumb’s lack of security safeguards as befit a financial services firm. However, the court did not find Park’s claims that Bithumb’s activities were similar to that of services offered in the financial sector to be true, and ruled against him.

– Vitalik Buterin Defending the Lightning Network

New Indian Governmental Committee Supports Crypto Legalization, Media Reports

Local India media reported this week that a governmental committee has suggested that cryptocurrencies be legalized within the country. An unnamed senior official who reportedly attended the panel’s meetings on cryptocurrencies stated that there was a “general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders.” The government reportedly set up this panel after the Reserve Bank of India’s ban on banks dealing with crypto businesses and persons in April this year.

Major US Magazine Time Column Reports on the Freeing Potential of Bitcoin

Time magazine published a column this week that praised the liberating potential of Bitcoin, mentioning Venezuela as an example of a country where the citizens can benefit from the cryptocurrency. According to the article, Bitcoin is a valuable financial tool for avoiding censorship, specifically noting that Bitcoin can help Venezuelans avoid inflation, as a government cannot simply print more Bitcoin. The currency can also be used to bypass mass surveillance in places like China.

Winners and Losers

The crypto markets are looking steady today, with Bitcoin trading around $3,874.67, Ripple around $0.37 and Ethereum at $138.85. Total market cap is around $130 billion.

The top three altcoin gainers of the week are SoundDAC, Bitspace and HondaisCoin. The top three altcoin losers of the week are RabbitCoin, Accelerator Network and CatoCoin.

Winners and Losers

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“Block-chain [sic] technology. No joke. Super powerful stuff, and the first one to figure out how to hack it, manipulate it or bring it down wins.” — Andrew Bustamante, reportedly a former CIA intelligence officer, speaking of the biggest threats to national security

Most Memorable Quotations

– Andrew Bustamante on the Future of U.S. National Security

“Once there are new issues, then Ether will rebound aggressively. When the ICO market returns, Ether will quickly test $200. The timing of the ICO rebirth is 12 to 18 months out,” — Arthur Hayes, BitMEX CEO

“Yeah no, I have my disagreements with the bitcoin roadmap, PoW, etc but they’re trying to do something that’s genuinely cool tech. BSV is a pure dumpster fire,”  — Vitalik Buterin, Ethereum (ETH) co-founder

“At some point, yes, it will drive a profound shift in how we communicate and collaborate, but we’re not there yet,”  — Lance Braunstein, E*Trade Financial Corp. CIO, speaking about “blockchain” as a buzzword

FUD of the Week

Hackers Steal Almost 1 Million in Phishing Attack on Electrum Wallet

A hack that reportedly took place this week against cryptocurrency wallet Electrum allowed a malicious party to steal almost 250 Bitcoin (BTC), commentators on social media reported. The hack was then confirmed by Electrum, which explained that it consisted of the creation of a fake version of the wallet that fooled users into providing password information. Affected users reported on social media that they failed to log onto their wallets after providing two-factor authentication code, which Electrum does not actually request during login.

WSJ: Hundreds of Crypto Projects Show Signs of Fraudulent Activity

Research published by the Wall Street Journal this week has revealed that hundreds of crypto offerings show signs of fraudulent activity, improbable returns and plagiarism. For its research, the WSJ downloaded the whitepapers of 3,291 crypto projects that had announced initial coin offerings (ICO), conducting an analysis of the documents. The research found that 16 percent — or 513 — of the aforementioned white papers showed signs of plagiarism and identity theft, and that 2,000 contained sentences with turns like “nothing to lose, guaranteed profit, return on investment, highest return, high return, funds profit, no risk and little risk.”

FUD of the Week

– Arthur Hayes on Ethereum and the Future of ICOs

Chinese Media Reports Jihan Wu and Jenke Group to Set Down as Bitmain CEOs

Unconfirmed media reports in China this week wrote that Jihan Wu and the Jenke Group will be reportedly soon retire as CEOs of leading mining ASIC producer Bitmain. According to unnamed sources, Bitmain is currently in a transition period, and employees are allegedly unhappy with the outcomes of the double-CEO system. The Chinese local media outlet also noted that their successor has the surname of Wang, without providing further information.

Japanese Giant GMO Internet to Stop BTC Miner Production After Losses in Q4

Japanese internet giant GMO Internet Group announced its intentions to leave the Bitcoin mining hardware sector. Citing major losses in Q4 of this year, GMO, which began its foray into BTC mining in 2017, has written in a public document that it will no longer develop, manufacture or sell miners, citing difficulties in the current business environment. The document also noted that GMO will relocate its mining operation “to a region that will allow us to secure cleaner and less expensive power supply.”

Best Cointelegraph Features

From Blanket Ban to Its Own Stablecoin: How Facebook’s Relationship With Crypto Changed Over 2018

Facebook often made the news this year in the FUD sense, as it banned, and then partially unbanned, advertising from cryptocurrency-related companies. In response to the rumors that the social media giant would be creating its own cryptocurrency, Cointelegraph looks at the history of how Facebook has interacted with crypto this year.

From “Obsolete” Blockchain to Bitcoin at $1 Mln: Predictions of 2018

As the year comes to a close, Cointelegraph looks at different predictions made this year about crypto, from the very accurate to the wildly off. As Bitcoin drops below $4,000 at year’s end, who was right?

Article First Published here

Hodler’s Digest, Dec 10-16: Top Stories, Price Movements, Quotes and FUD of the week

Top Stories This Week

CEO of Defunct Mt. Gox Exchanges Faces Ten Year Jail Sentence Over Embezzlement

Mark Karpeles, the former CEO of now-defunct Japanese Bitcoin exchange Mt. Gox, could be facing a ten-year jail sentence over charges of embezzlement. Karpeles, who headed the exchange during the major hack in 2014 that resulted in the loss of 850,000 BTC ($2.87 billion at press time), has denied any wrongdoing. Prosecutors in a Tokyo court this week have claimed that Karpeles had stolen around $3 million worth of funds from the exchange, in a case not connected to the hack.

Only Two ASIC Mining Rigs Remain Profitable in Current Crypto Markets

During this week’s cryptocurrency market crash, crypto mining machines are having trouble making a profit for their operators, according to data from a mining profitability site. At one point this week, ASICMinerValue.com  — which calculates real-time profitability for ASIC miners — found that only two were currently making any profit. Both of the profit-reaping miners were released in October 2018 and were making $0.58 and $0.21 in profits at the time. At press time, however, more than two miners are now in the green.

Canadian City of Calgary Launches Digital ‘Calgary Dollar’ for Intracity Transactions

The Canadian city of Calgary, located in the province of Alberta, has launched its own digital currency: the Calgary Dollar. The digital currency will allow citizens, using an app on their devices, to support small businesses and nonprofits by keeping funds within the city. The Calgary Dollar can be used at shops and restaurants that participate in the program and can be earned in various ways, such as by inviting friends to the app or posting an ad for goods and services priced in the digital currency.

US SEC Chairman Speaks Positively of Initial Coin Offerings as Capital Raising Tool

The chairman of the United States Securities and Exchange Commission (SEC), Jay Clayton, said this week that Initial Coin Offerings (ICOs) “can be effective” instruments for raising capital. During a speech given this week, Clayton noted that there are a “number of concerns” related to ICOs, but that they can be “effective” ways to raise capital providing that securities laws are followed. Clayton also mentioned the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub), which will facilitate the agency’s involvement in fintech.

Samsung Refutes Rumors of Plans to Add Crypto Cold Wallet on Galaxy S10 Smartphone

Korean-headquartered transnational tech conglomerate Samsung has refuted rumors this week that it plans to launch a crypto cold wallet on its Galaxy S10 smartphone. The rumors began after the company filed three E.U. trademarks for blockchain- and cryptocurrency-software. SamMobile confirmed to Cointelegraph that the trademarks are part of the development of a Samsung proprietary cold wallet, which “may be launched” with the Galaxy 10 smartphone.

Winners and Losers

The cryptocurrency markets are holding steady, with Bitcoin (BTC) trading at around $3,275, Ripple (XRP) at around $02.38, and Ethereum (ETH) at around $86,29. Total market cap is about $104 billion.

The top three altcoin gainers of the week are Bolenum (BLN), Vestoria (VSTR) and SURETY (SURE). The top three altcoin losers of the week are BitF (BITF), KWH Coin (KWH) and DACH Coin (DACH).

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“I believe that ICOs can be effective ways for entrepreneurs and others to raise capital. However, the novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed,” — Jay Clayton, United States Securities and Exchange Commission (SEC) chairman

“We’re totally at home in winter,” — Tyler Winklevoss, speaking about the crypto bear market

“The audience is more sober now—the drug is gone. […] But it’s not going to zero. We’re at the methadone clinic,”  — Mike Novogratz, founder of Galaxy Digital

Prediction of the Week

Tom Lee: Bitcoin’s Fair Value Price Could Reach as High as $150,000

Crypto bull and co-founder of Fundstrat Global Advisors Tom Lee said this week that Bitcoin’s (BTC) “fair value” is much higher than its current price. In a note from this week, Lee also said that the coin’s fair value is between $13,800 and $14,800, also adding that the value could reach as high as $150,000. Lee added: “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”

FUD of the Week

China: Central Bank Governor Defines STOs as ‘Illegal Financial Activity’ in the Country

The People’s Bank of China (PBoC), the country’s central bank, highlighted the illegality of Security Token Offerings (STOs) in the country in a statement this week. Pan Gongsheng reportedly told a summit in Beijing this week that both STOs and ICOs were “rampant” in the mainland, despite the “nationwide clean-up” of the crypto markets in China last year. In regards to the “STO business” in China, Gongsheng added that cryptocurrencies are still associated with crime.

Major Stablecoin Profit Basis to Shut Down and Return Funds to Investors

Major United States-based stablecoin project Basis will shut down operations and return most of its funds to investors. The algorithmic stablecoin project will return the majority of its $133 million in funding that it raised during a private placement in April, according to a report.

Bloomberg later reported that Basis’ CEO Nader Al-Naji confirmed that the impetus to close the project came from regulatory concerns over a type of token in Basis’ — as well as other algorithmic stablecoins’ — a system known as a “secondary token,” which helps keep the coin’s price stable. Al-Naji noted that there was no way to “escape” classification as a security.

Head of Largest Romanian Crypto Exchange Arrested for Fraud on US Warrant

Vlad Nistor, the CEO of Romania’s largest crypto exchange Coinflux, was reportedly arrested on a warrant from the U.S. for fraud, organized crime and money laundering. Coinflux is an online digital currency trading platform, with reportedly more than 200 million euro worth of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP) in transactions. Nistor was allegedly arrested in Romania at the behest of the U.S.

After this arrest, CoinFlux posted an announcement about a temporary suspension of all digital currency exchanges, noting that the investigation has also restricted its access to some parts of the platform.

Best Cointelegraph Features

Europe Takes Serious Steps Toward Blockchain Adoption

Cointelegraph explores how Europe is orienting itself towards blockchain and digital ledger technology as a whole. Looking at several initiatives, including the European Blockchain Partnership and the blockchain-based healthcare project, the analysis examines how Europe is working to become a “global leader” in DLT.

From South Korea to IBM Food Trust – How Blockchain Is Used in the Food Industry

In this analysis, Cointelegraph looks at how different companies and areas in the food industry use blockchain technology to bring transparency to their food chains, and why that the traditional use of blockchain doesn’t always work here.

Article First Published here

Bitcoin Price Drops, IPO’s and an NYSE Bitcoin Market: This Week in Crypto


Make sure you check out our previous edition here, now let’s go over what happened in crypto this week. Also, make sure you subscribe for this week’s edition of The CCN Podcast on iTunes, TuneIn, Stitcher, Google Play Music, Spotify or wherever you get your podcasts.

Price Watch:

  • The bitcoin price is down 15% this week following strong gains of 9% last week and 18% the week before that. The coin had been hovering around the $8,000 mark since it first hit the crucial price level on August 24th. The $1,200+ price drop has largely been blamed on the SEC’s rejection of the Winklevoss’ second ETF rejection. On its way down, the price flirted with the $7,800 support level before failing to maintain that level. The bearish pattern has continued all the way down to the $7,000 level.
  • Ethereum is down 14% this week hovering around the $400 level. The coin has been moving in tandem with bitcoin as far as down moves go recently, but not mirroring up moves. As we discussed on last week’s podcast episode, ethereum is representative of lots of altcoins that have mostly taken heavy losses.
  • The entire coin market cap is down 14% this week. The cap fell below the crucial $300 billion level earlier this week and fell to the $255 billion level mid-week. The price drop falls despite nice gains by major currencies such as tezos.

    cryptocurrency market cap
    Source: CoinMarketCap

  • Bulls:
    • Bill Miller’s Bullish – Billionaire Bill Miller, the founder, and CIO of Miller Value Partners compared bitcoin to gold and was bullish.
    • Hedge Fund Manager: Bitcoin Price Headed to $500,000 – Mark Yusko, the founder of North Carolina-based Morgan Creek Capital Management, said that he is sticking by his year-end bitcoin price target of $25,000. Yusko originally made this prediction in April, adding that he expects bitcoin to march to $75,000 by 2020, $200,000 by 2022, and ultimately eclipse $500,000 by the end of 2024.
    • Bitcoin Could be ‘First Worldwide Currency’: NYSE Owner – Speaking with Fortune, ICE founder, Chairman, and CEO Jeffrey Sprecher explained that he believes that — bolstered by Bakkt’s (ICE’s crypto subsidiary) infrastructure — bitcoin could become the currency of choice for global payments.
    • Bitcoin Price Headed to New Highs: Crypto Hedge Fund Manager Spencer Bogart –  Speaking on CNBC’s Fast Money, Spencer Bogart of Blockchain Capital reinforced his prediction that bitcoin is bound for higher price levels in the near future as he thinks that the pullback momentum may have been exhausted.
    • Tom Lee: Bitcoin Price Recovering from Winklevoss ETF Rejection a Positive Sign – On July 27, upon the rejection of the Winklevoss bitcoin ETF by the U.S. Securities and Exchange Commission (SEC), the price of BTC fell from $8,300 to $7,800, by more than six percent in a three-hour period. Tom Lee says the quick recovery is a sign of a bullish sentiment.
  • Bears:

Startups:

  • Factom Files Patent for Validating Documents on the Blockchain – Factom (FCT) has filed a new patent with the U.S. Patent & Trademark Office that allows verification of documents on a blockchain with multiple digital signatures.
  • Hedera Hashgraph Raises $100 Million At $6 Billion Valuation – Hedera Hashgraph, a U.S. based distributed public ledger that plans to offer a cryptocurrency, a file storage service, and a smart contract platform, has raised $100 million. The company is looking to raise another $20 million in a crowdsale.
  • High Times Launches First Ever IPO to Accept Bitcoin, Ethereum – High Times, a prominent New York publication advocating cannabis usage, is breaking new ground in the cryptocurrency world by accepting crypto during its IPO, the first ever stock offering to do so.
  • Coinbase Brings Crypto Payment Option to Millions of Online Businesses – Coinbase Commerce, a cryptocurrency payment provider, has announced a series of initiatives to support crypto commerce, including a WooCommerce plugin to give millions of merchants the option to accept cryptocurrencies, the ability to send bitcoin and litecoin directly, and other new capabilities.
  • Canaan Unveils First-Ever Bitcoin Mining Television – Canaan Creative has launched what it hopes will be the future of the blockchain and the first of a series of releases that will improve its position as it battles for increased market share in the bitcoin mining device market. Critics insist that the device is little more than a self-promotion gimmick as the company prepares for it’s IPO, offering no real utility to users.
  • Cryptocurrency Bank Galaxy Digital Which Lost $134 Million in Q1 Is Going Public – According to Bloomberg Galaxy Digital LP — will be listed for trading on the Toronto-based TSX Venture Exchange on August 1st. The company is using a reverse takeover of an existing firm to be listed.

Exchanges:

  • Biggest Stock Exchange Operator to Launch Bitcoin Market – Intercontinental Exchange, the owner of the New York Stock Exchange, has announced that will list a physically-settled bitcoin futures contracts and form a new company whose mission is to make bitcoin a mainstream financial asset.
  • OKEx Initiates ‘Clawback’, Injects 2500 BTC  – OKEx has moved to protect its futures market with an injection of 2500 BTC into the exchange’s insurance fund from its own capital after a forced liquidation on July 31st threatened to destabilize its operations. The futures contract amounted to a staggering $420 million worth of BTC. OKEx moved swiftly to counter this liquidation with a series of measures that were announced on its website.
  • Coinbase Adds British Currency Support – Users at Coinbase will now be able to deposit and withdraw funds in British Pound, the company announced on Wednesday.  Coinbase, being an exclusive digital currency firm, has obtained a bank account in the U.K. The company already has an e-money license issued by the U.K.’s Financial Conduct Authority (FCA).
  • Robinhood Opens Crypto Trading to Georgia Residents – Robinhood, a commission-free stock trading platform, announced that residents in the state of Georgia can now invest in cryptocurrency through the app. The move follows the app’s launch of Robinhood Crypto in early 2018, its subsequent rollout in four states, and comes in the wake of a $363 million funding round.
  • Coinbase Bug Prevents Canadian Users from Withdrawing Funds – An issue with Coinbase systems recently prevented users from Canada and a number of other countries from withdrawing funds, leading to frustration and concern among many customers. In a statement to CCN, Coinbase claimed the issue was a bug.
  • Ex-FBI Director Louis Freeh Opens up about Tether Investigation – In a recent interview with Yahoo Finance, former FBI Director Louis Freeh (of FSS) answered questions about the Tether investigation and the public’s reactions to the firm’s work. He discussed the “transparency update” that was compiled by FSS after they were granted full access to bank accounts, statements, and spoke with some employees at banks holding Tether assets and responded to criticism that the investigation did not constitute an official “audit.”
  • UPbit Comes Out Clean in Audit after Raid – UPbit, currently the biggest crypto exchange in South Korea, came out clean in an audit report which proved the exchange had 100 percent of the amount its balance sheet demonstrated. The audit comes following a raid by local authorities under the suspicion of balance sheet manipulation and inflated volumes.
  • Thai Bond Market Association to Incorporate Blockchain Technology – The Thai Bond Market Association (TBMA) plans to implement a new registrar service platform combining financial technology with blockchain technology. There are ongoing plans to put it to practice during the current year to improve the growth of the secondary market.
  • Binance Buys Ethereum Wallet Service in First-Ever Acquisition –  Binance, one of the world’s two largest cryptocurrency exchanges, has just completed its first-ever acquisition of TrustWallet. According to TechCrunch, the Malta-based exchange operator acquired Trust Wallet, creator of the eponymous mobile Ethereum wallet that includes support for ether, as well as ERC-20 and ERC-223 tokens. Terms of the deal have not been disclosed, but Binance confirmed that it included a mixture of cash, Binance stock, and Binance tokens.

Enterprise:

  • Bitmain Made $1.1 Billion in Profit in Q1 – Citing an email obtained from a source close to the China-based firm, Fortune reports that Bitmain — best known for manufacturing bitcoin mining equipment — raked in $1.1 billion in profit during the first quarter of 2018. Conservatively, the company expects to earn $2 to $3 billion in profit for the fiscal year. Remarkably, those figures place Bitmain nearly on par with chipmaking giant Nvidia, who reported a net income of $1.2 billion during the first quarter and has a ~$150 billion market cap.
     
  • Walmart Files Patent for Smart Appliance Management – Walmart has filed another patent application in the blockchain sector entitled “Managing Smart Applications Using Blockchain Technology.” The filing follows a number of previous applications for blockchain patents including blockchain package delivery systems, medical record storage systems, food safety, and a blockchain-based digital marketplace — some of which we dove into on the third episode of the CCN Podcast.
  • Report: Blockchain to ‘Reach $2 Trillion by 2030’ – IHS Market, a data analytics firm in the fields of finance and technology, released a July report that forecasts blockchain technology could lead to a business activity value of $2 trillion by 2030. The report includes all value that blockchain adds as an entire vertical (not specific coin market caps). Many think this is too conservative considering the market’s proximity to $1 trillion during the 2017 bull run.
  • Bitcoin Price Must Hit $213,000 to Become Viable USD Replacement: UBS – According to a new report from Swiss investment bank UBS, Bitcoin’s price must reach $213,000 to replace the estimated $3.63 trillion worth of USD in circulation, commonly referred to as the M1 or “narrow money” supply.
  • Square Seeing Growth in BTC User Base: CFO – Square Inc. Chief Financial Officer Sarah Friar has hailed the impact of bitcoin support on the company as it continues to record strong growth driven primarily by its flagship Cash App, also known as Square Cash.
  • Rogue Qiwi Employee Lost 500,000 Bitcoins in Attempted Theft – In 2011, the Qiwi Group CEO learned that his company computers minted 500,000 bitcoins, unbeknownst to him at the time. At the time, he did not know what bitcoin was, let alone bitcoin mining. After an investigation, he learned his chief technical officer minted 500,000 coins worth $5 million in three months, an amount that is now worth billions of dollars. The story came to light this week in a lecture at the Moscow School of Communications

Governments:

Hacks & Security:

Featured Image from Shutterstock

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Bitcoin (BTC) Price Watch: Bulls Defending Correction Level

Bitcoin Price Key Highlights

  • Bitcoin price is still in correction mode but appears to be finding support at the nearest Fib.
  • A bounce from current levels could take it back up to the swing high and beyond.
  • A move lower, on the other hand, could indicate that a deeper pullback from the uptrend is in order.

Bitcoin price has pulled back from its rally and could be due to resume the uptrend if the 38.2% Fib holds as support.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. However, the 100 SMA appears to be turning from its climb and is narrowing the gap between the 200 SMA. This could be indicative of slowing bullish momentum.

For now, bitcoin price appears to be finding support at the 38.2% Fib but has yet to show more bullish traction on the bounce. A larger pullback may be in order, possibly until the rising trend line connecting the latest lows and the 200 SMA dynamic inflection point. This is also around an area of interest or former resistance at $6,800 to $7,000.

RSI is already indicating oversold conditions, though, or that sellers are tired and ready to let buyers take control. Stochastic is also pulling up from the oversold region to signal a return in bullish pressure.

BTCUSD Chart from TradingView

Bitcoin price was weighed down by a number of factors earlier in the week, namely news of stricter regulation in South Korea, the outage on HitBTC, and Paul Krugman’s negative remarks on cryptocurrencies.

However, this might not be enough to derail the positive sentiment among most investors as it has been previously reported that institutional interest is picking up. Besides, the dollar could also be under pressure due to worsening trade tensions between the U.S. and China, so alternative assets like bitcoin could be poised to take advantage.

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Bitcoin (BTC) Price Watch: All Eyes on this Area of Interest

Bitcoin Price Key Highlights

  • Bitcoin price busted through its short-term channel and the top of a longer-term descending triangle.
  • Price is now making its way to the area of interest around $8,000 that might make or break the rallies.
  • Strong bullish momentum could take it past this former support region, paving the way for an extended uptrend.

Bitcoin price has climbed enough to reach the area of interest at $8,000 and might need another catalyst to sustain its rally.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect strengthening bullish momentum.

However, RSI is slowly making its way down from the overbought territory to reflect a return in selling pressure. This could spur either a quick retest of the broken triangle top around $7,200 or a dip all the way back down to the triangle and channel bottom at $6,500.

Stochastic, on the other hand, appears to have some more room to climb. In that case, buyers still have the upper hand and could push for more gains until the oscillator turns from the overbought region to reflect bullish exhaustion.

BTCUSD Chart from TradingView

Institutional interest and regulation have lifted bitcoin over the past week, and the market attention now turns to the SEC for its decision on the bitcoin ETF. An approval could mean more money flowing into the industry, which could lead to further gains and be enough to sustain the much-anticipated rebound for the year.

On the other hand, rejection could put regulators back in the negative light, likely leading to larger retracements or dips for bitcoin. Dollar demand seems to be taking some hits recently on the US spat with China, although the advanced GDP release later in the week could fuel rate hike expectations again.

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Bitcoin Price Booms, App Launches and Acquisitions: This Week in Crypto


Make sure you check out our previous edition here, now let’s go over what happened in crypto this week. Also, make sure you subscribe for this week’s edition of The CCN Podcast on iTunes or wherever you get your podcasts.

Also make sure you check out last weeks interview with Bridge CEO Stephen Hyduchak.

Price Watch:

  • Bitcoin increased nearly 18% this week after months of slow decline. The price peaked at just over $7,500 Opinions are mixed on wether or not this trend will continue. BitMEX CEO Authur Hayes said in an interview with CNBC this week that prices would likely go higher, but not hit $10,000. He further explained that he “would like to see us test $5,000” for the currency to really bottom out. The opinion sharply contrasts with that of long time bear Barry Silbert who speculated that Bitcoin’s price had finally bottomed. He’s attributed this to a large influx of institutional money, which now makes up 56% of the nearly $248 million invested in the GBTC. Other bulls include former Goldman Sachs executive Christopher Matta who speculated that Bitcoin could see $15,000 this year and Billionaire Marc Lasry who speculated Bitcoin could see $40,000 within a few years.
  • Ethereum is up 5% this week to $466.65. The currency hit the crucial $500 level before falling back down to $466.65 resulting in the respectable gain we saw this week.
  • The Entire Market Cap is up 11% this week following large price increases by Bitcoin and a mini-bull run across the entire market. Stellar, which was also awarded Sharia certification this week, increased by nearly 35% before sliding nearly 10% as the market receded. This phenomenon is representative of a larger trend across the market which affected TRX, XRP, ADA, and EOS among others. It’s also noteworthy that CoinMarketCap has removed it’s volume requirements for cryptocurrency exchange listing.

Government:

  • Chile to re-open Exchange Orionx’s Bank Account: Chilean Court of Appeals has recently ruled that state-owned Banco Estado has to re-open the account of bitcoin exchange Orionx, after it seemingly illegally shut it down.
  • G20 Watchdog develops ‘Vigilant’ monitoring framework: The Financial Stability Board, a global finance monitoring watchdog created by the G20, has published a new framework for monitoring cryptocurrencies. The framework aims at” identifying financial stability concerns in a timely manner”.
  • Dogecoin listed on Robinhood Crypto: Dogecoin, the parody cryptocurrency created in 2013, became the fifth currency to be listed on the app. Current currencies include Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The coin is an odd choice considering it’s low market cap and rank, and the fact that it’s own creator doesn’t support it.
  • BitPay receives 8th BitLicense: Cryptocurrency payment processor BitPay has become the eighth firm to receive a “BitLicense” from the NYDFS. BitPay becomes the first standalone payment processor to be allowed to process cryptocurrency payments for New York merchants and residents.
  • Brazilian Police Bust Gang Who Used Bitcoin to Launder Millions of Dollars: Brazil’s Federal Police has recently arrested 12 individuals connected to a gang that allegedly used bitcoin to launder “millions of dollars” earned smuggling drugs into Europe, Asia, and Africa.
  • Hong Kong Trade Finance Will Fight Fraud With a Blockchain-Based Platform: The Hong Kong Monetary Authority has partnered with Chinese Ping An to release a blockchain-based trade finance platform. The joint effort is expected to speed-up the process and prevent fraud. The effort now includes 21 enterprise participants.
  • SEC Shutters Kodak-Branded Bitcoin Mining Rig ‘KashMiner’: The developer behind the purported and much-publicized Kodak-branded bitcoin mining equipment has officially halted operations. The company, which originally claimed to be a licensee of the Kodak brand, has been exposed as having no ties to Kodak and having a product which was simply a Bitmain miner with Kodak branding.

Enterprise:

  • MLB to Launch “MLB Crypto” dApp game: Major League Baseball announced this week that it would be launching a dApp for buying and selling digital avatars representing moments in baseball games. The move comes as a way to attract younger crowds to baseball who have largely shunned the sport.
  • Go Blockchain Game to Launch: Lee Sedol The Go World Champion who lost to Google AI AlphaGo in 2016 has announced a blockchain based version of Go, in collaboration with The Blockchain, Inc. The project, named GoBlock will run on the Ethereum network and follow in the steps of other Ethereum based games such as MLB Crypto, CryptoKitties, and CryptoZombies.
  • Thai Bond Market Association to Launch ‘Bond Coin’: The Thai Bond Market Association has announced that it will create “Bond Coin”:  a custom token on a private blockchain between permissioned participants including issuers and investors alongside regulators and registered firms.
  • BlackRock Exploring Crypto: BlackRock, the largest exchange traded fund provider with over $6.3 trillion assets under management, is reported to have created a working group to look at ways to gain exposure to blockchain. and cryptocurrencies
  • EURS Onboards First Institutional Client: STASIS, the crypto ecosystem which recently launched the stablecoin EURS that is paired exactly against the Euro recently announced that it had onboarded its first institutional client. This marks a major milestone for Malta based STASIS and stable coins as a whole.
  • Messaging Giant LINE’s Cryptocurrency Exchange Begins Global Operations: Japanese mobile giant LINE has officially launched operations of its Singapore-based cryptocurrency exchange BITBOX with support for 30 cryptocurrencies including bitcoin. The exchange, announced on Tuesday, will support crypto-only trading pairs.
  • PwC Director Quits, Joins Cryptocurrency Exchange as CEO: A director at ‘big four’ accounting giant PWC  in Australia has quit the firm to join crypto exchange bitcoin.com.au as its newest CEO. The company hopes to bring crypto products to corporate pension plans and capitalize on millennia’s love of crypto and a trend toward self-managed funds.
  • Boeing to Use Blockchain to Track Unmanned Air Vehicles: Boeing is partnering with artificial intelligence firm SparkCognition to develop a decentralized blockchain based platform capable of ‘tracking unmanned air vehicles in flight and allocate traffic corridors and routes’ to ensure secure transportation, the company said in an announcement on Tuesday.
  • Kik Beta App ‘Kinit’ Goes Live on Google Play after $100 Million ICO: Kik rolled out its much anticipated standalone app, KinIt this week. Kin has raised over $100 million so far and this app is the first standalone app to utilize Kin.
  • Oracle Launches Blockchain Cloud Service Platform: Oracle has formally launched its much-anticipated blockchain service, and many global organizations have already jumped aboard the platform. The platform, originally reported in May, is based on Hyperledger Fabric and includes a full featured IAAS.
  • Mastercard Files Patent to Link Cryptocurrency With Fiat Accounts: The patent describes a method for the storing of both fiat and cryptocurrencies under one profile. The patent follows patents by Mastercard for anonymous transactions, travel itinerary bidding, and coupon authentication. It remains unclear wether these patents are meant to maintain Mastercard’s hold over the payment space or if they intend to do anything with the patents.
  • $20 billion Hedge Fund Joins Coinbase: A$20 billion hedge fund — whose name was not disclosed by sources — began using Coinbase Prime following its launch earlier this year, perhaps a sign that cryptocurrency is preparing to emerge as a mainstream asset, at least among alternative investments.

Crypto Giants:

ICOs:

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Worst Not Yet Over for Bitcoin Price: BitMEX CEO Arthur Hayes


Seems like that anticipated trip to the Lambo dealership will have to be put off for later.

According to the co-founder and CEO of Bitcoin Mercantile Exchange, Authur Hayes, the rally that bitcoin has experienced this week was accompanied by healthy volumes, making it possible for higher levels to be reached. However, prices could reverse and test the US$5,000 level again.

“I don’t actually think we’ve seen the worst. I think this is a very strong rally on good volume and we definitely could see $8,000 … $9,000 … and maybe just shy of $10,000 … we’ve been here before where we rallied from $5,800 to a high of $9,000 level but didn’t quite crack $10,000. I think similar action will happen this time and I would like to see us test $5,000 to really see if we put a bottom in,” Hayes told CNBC’s Fast Money.

Strong Support to Offer Launching Pad

bitcoin price chart
One-month bitcoin price chart

In his view, Hayes expects that after finding a strong support level, the flagship cryptocurrency could then rally to $50,000 by the end of the year. Hayes also disclosed that he expects more volatility after the end of summer.

“Given that it’s a summer and everyone is in the Hamptons, or the French Riviera or in Asia at Bali, I think people are taking a little bit of a chill time… come back in Q3, Q4 is when I think the party is going to start again,” Hayes said.

The remarks by Hayes are in contrast to some of the bullish sentiment floating around indicating that bitcoin had bottomed out. On Tuesday, for instance, Digital Currency Group’s founder, Barry Silbert, stated that bitcoin bears had run out of steam.

FUD not Working Anymore?

According to Silbert, one of the reasons that was giving him confidence was the fact that Jerome Powell, the chairman of the U.S. Federal Reserve, had criticized cryptocurrencies but this did not place downward pressure on prices.

“When the chair of the Fed says negative things about bitcoin, and Howard Marks [Oaktree Capital’s co-chairman] says negative things about bitcoin, and Ken Griffin [Citadel’s founder and CEO] says negative things about bitcoin, and bitcoin doesn’t move, I think that’s a bullish sign,” Silbert said.

The Charts are Calling the Shots

Others who have expressed bullish sentiment include the managing director of Forex Strategy at BK Asset Management, Boris Schlossberg, who predicted that the bitcoin price could break above $8,000 soon. Schlossberg pointed out that at this point technical analysis was driving the price of bitcoin rather than the fundamentals.

Avenue Capital Group’s co-founder, Marc Lasry, also predicted an upward movement for bitcoin and expects the flagship cryptocurrency to hit the $40,000 mark in the next couple of years.

Featured Image from Shutterstock

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NEO Price Watch: Longer-Term Reversal Pattern?

NEO Price Key Highlights

  • NEO could be in for more gains as it forms an inverse head and shoulders on its 4-hour chart.
  • Price has yet to break past the neckline around $40 to confirm the potential uptrend.
  • Technical indicators are giving mixed signals at the moment, with oscillators suggesting another dip.

NEO price could be in for a reversal from its downtrend as it forms an inverse head and shoulders pattern.

Technical Indicators Signals

The 100 SMA just crossed above the longer-term 200 SMA to suggest that the path of least resistance is to the upside. In other words, the uptrend could gain more traction from here as bullish momentum returns. These moving averages could also hold as near-term dynamic support levels in this current pullback.

However, RSI has room to head south after turning from overbought territory, indicating that selling pressure could stay in play for a while. Stochastic is also heading lower so NEO price could follow suit.

A bounce off the moving averages and area of interest closer to $32 could still lead to a test of the neckline. A break past this could spur a longer-term climb that’s the same size as the reversal formation, which spans $27 to $41.

NEOUSD Chart from TradingView

Sentiment in the cryptocurrency industry has been mostly positive, following a strong start to the quarter and a pickup in institutional interest reported earlier this week. Some dismiss this as a dead-cat bounce or a short squeeze on profit-taking, but it looks like the mood has been mostly positive.

For one, investors appear to be welcoming regulatory developments in Japan and South Korea instead of previously using these as reasons to close out positions. After all, this could increase security and legitimacy in a growing industry.

Looking ahead, headlines on regulation and investments could continue to impact NEO price action, along with overall sentiment in the financial markets.

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