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