There’s no doubt Bitcoin investors across the board are worried right; after Wednesday’s 10% flash crash that took BTC from $10,300 to $9,250, cryptocurrency sentiment shared on social media has been relatively muted, with some sharing their opinion that Bitcoin could be subject to a bear trend. Despite this, a key chart, which depicts BTC holding about a crucial level of support, indicates that the bull case remains alive for the crypto market. Whether or not that will be translated to another surge higher, though, is yet to be seen. Bitcoin Bulls Aren’t Giving Up, Not Yet Anyway Popular trader CryptoDude recently posted the below chart, which shows the leading cryptocurrency’s price action over the past few months on a one-day basis. While the retracement that has been seen over the past 10 or so days looks bearish, there is a silver lining: Bitcoin has printed three long daily wicks into the $9,300 to $9,500 region, though failed to close a daily candle under $9,500. This suggests that there remains a large amount of buying demand, adding to the potential for a greater recovery (potentially above $10,000) in the coming days. $BTC Doesn't want to close below pic.twitter.com/m5z0uY0BgN — CryptoDude (@cryptodude999) February 22, 2020 Why $9,500 Is So Important So, this may leave you wondering: why is Bitcoin’s holding of $9,500 crucial for bulls? Related Reading: This Chinese Whale Lost $45 Million in Bitcoin and BCH Overnight: How it Happened Well, Crypto Bullet, a TradingView analyst, broke down this topic in an extensive analysis published Thursday: The region around $9,500 has been a long-time “strong” horizontal level for Bitcoin, often acting as a reversal point for bears when approached from above and a reversal for bulls when approached from below. This level is the 0.5 Fibonacci Retracement level of the drop from $14,000 to $6,400. The 0.5 Fibonacci level is often significant in markets. $9,500 is a high-volume node per the VPVR. The 200 exponential moving average on the four-hour chart is currently sitting around $9,500, just below the current price of the cryptocurrency. Importantly, this level is a moving target as it is a moving average. Not to mention, Filb Filb, a pseudonymous analyst who has been one of the most accurate in the cryptocurrency space for a number of months now, recently remarked that “every time Bitcoin turns $9,500 to support [on a weekly basis], it goes to $11,500.” Featured Image from Shutterstock
The past few days haven’t been kind to the crypto markets. After peaking last week, market leaders Bitcoin, Ethereum, and Ripple’s XRP and smaller altcoins saw their values tank. XRP was hit especially hard by the retracement, falling from its multi-month high somewhere above $0.34 to as low as $0.265 during the flash Wednesday sell-off that brutalized bulls, liquidating millions of dollars worth of Bitcoin positions on BitMEX and other leverage exchanges. Despite this brutal more-than 25% retracement in the price of the third-largest cryptocurrency, analysts remain optimistic, touting a number of indicators suggesting that bulls may soon return to graze in the XRP fields, so to say. Ripple’s XRP Prints Flurry of Strong Signs Popular crypto commentator CJ recently remarked that XRP’s chart setup suggests a strong breakout to the upside may soon occur. In his chart, he depicted the fact that XRP has been building a falling wedge pattern over the past two weeks, which more often than not break to the upside. The wedge CJ drew ends at the top of a demand zone (which may act as a region of support) around $0.24, adding to the potential for the wedge to break upward — something that the analyst suggests will take XRP to $0.35. $XRP – This would be nice. pic.twitter.com/2I1gXOYLyn — CJ (@IrnCrypt) February 22, 2020 This is far from the only technical sign that may support bulls moving forward. Per previous reports from NewsBTC, the indicator of HODL2100K, the IchiEMA, has printed a buy candle on the weekly chart of the cryptocurrency. This signal was seen two weeks before the altcoin began its infamous surge at the end of 2017, during which the asset gained over 1,000% in under a month’s time, rallying from $0.20 to a price above $3.00. Also, eerily accurate trader Financial Survivalism suggested that the asset could hit $0.70 this year. He backed this forecast by looking to the following factors: the Heiken Ashi candles have turned green on a weekly basis, implying reversal, the cryptocurrency has turned a key horizontal into support, and it has broken above a falling wedge pattern, adding to the bull case. Related Reading: This Chinese Whale Lost $45 Million in Bitcoin and BCH Overnight: How it Happened Veteran Trader Warns of Steep Retracement While there are these technical factors, some are not sure XRP is ready to see the strong breakout that CJ and his contemporaries suggested may take place. Veteran commodities analyst Peter Brandt warned his followers that XRP is in the form of printing a textbook a head and shoulders top, marked by two shoulder-like segments of price action and a blow-off top in the middle. It will be interesting to see if this H&S top plays out. If so, the target would be .2071. This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV — Peter Brandt (@PeterLBrandt) February 20, 2020 Brandt remarked that should this textbook pattern play out, the cryptocurrency could fall to $0.2071 — around 23% lower than the current market price around $0.27 — for that is where the measured move of this pattern lies. Featured Image from Shutterstock
XRP’s recent price action has been lackluster to say the least, with its notable surge up to highs of $0.35 being met with significant resistance which, coupled with the bearishness seen across the aggregated crypto market, led it to see a notable retrace. The cryptocurrency now appears to be in a precarious position, as it is currently caught within a bearish technical pattern that could lead it significantly lower in the near-term. This, coupled with the fact that the crypto is expressing multiple bearish technical signs, seems to suggest that further losses could be imminent. XRP Consolidates Around $0.27 as Analysts Eye a Bearish Head and Shoulders Pattern At the time of writing, XRP is trading own over 1% at its current price of $0.27, which marks a notable decline from its weekly highs of $0.32 that were set earlier this week. From this point, the crypto saw some choppy trading before moving up to highs of $0.31 on Wednesday, which is when the aggregated crypto market saw an intense selloff that was sparked by Bitcoin’s flash crash from $10,200 to $9,200. Peter Brandt, a veteran trader and highly respected analyst, spoke about XRP in a recent tweet, explaining that it is a possibility that the crypto is forming a bearish head and shoulders top, which could lead it as low as $0.20 in the near-term. “It will be interesting to see if this H&S top plays out. If so, the target would be .2071. This Tweet poses a possibility. This is not a prediction,” he explained while pointing to the chart seen below. It will be interesting to see if this H&S top plays out. If so, the target would be .2071. This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV — Peter Brandt (@PeterLBrandt) February 20, 2020 These Technical Factors Also Suggest Further Losses Could be Imminent The bearish head and shoulders pattern Brandt references isn’t the only thing currently counting against XRP, as there is a myriad of other technical factors that suggest further losses could be imminent. Cold Blooded Shiller – a prominent cryptocurrency analyst and trader – spoke about these factors in a recent tweet, pointing to growing resistance and its recently formed lower high as two of these factors. “Isn’t XRP just the easiest HTF short right now? Weekly lower high. Weekly SFP. Weekly Resistance. What am I missing aside from pure hopium?” Isn't $XRP just the easiest HTF short right now? Weekly lower highWeekly SFPWeekly Resistance What am I missing aside from pure hopium? pic.twitter.com/CfkdQMwwrX — Cold Blooded Shiller (@ColdBloodShill) February 22, 2020 It is probable that XRP’s price action will be somewhat dependent on that of Bitcoin, as any further BTC downside would likely confirm this bearishness and potentially lead XRP and other altcoins to see significantly further losses. Featured image from Shutterstock.
As the global pension crisis worsens, millennials, are looking at novel retirement strategies, to protect their retirement security. Will bitcoin serve the purpose? Millennials’ Financial Situation Is ‘Relatively Dire’ Baby boomers, and then Generation X, popularized inflation-ridden investments and various retirement schemes that now are in crisis. Generation X had less money than baby boomers. And, in turn, millennials have even less. Thus, compared with their parents, their retirement prospects are becoming increasingly alarming. According to the Washington Post, “Millennials haven’t hit the 35 mark yet — that won’t happen until about 2023 — but their financial situation is relatively dire. They own just 3.2 percent of the nation’s wealth. To catch up to Gen Xers, they’d need to triple their wealth in just four years. To reach boomers, their net worth would need a sevenfold jump.” In fact, millennials are already concerned about their retirement prospects. According to the National Institute on Retirement Security (NIRS), half of the millennials doubt they will be able to retire when they want to. And, as they will live longer than their parents, they worry about outliving their retirement savings. And the NIRS adds, “More than ninety percent agree that the nation’s retirement system is under stress and needs reform. Given that this generation has witnessed their parents struggle to make ends meet during retirement, their concerns about achieving retirement security—even though decades away — are warranted.” Indeed, Raoul Pal, CEO, and co-founder of Real Vision, in his video The Coming Retirement Crises, warns that millennials will not be able to fulfill the American Dream of retirement. Tim Draper: Millennials Should Invest in Bitcoin Consequently, many are advising millennials to look at retirement schemes that differ from those of their parents’ generation. For example, billionaire Tim Draper recommends to the younger generation that Bitcoin and other cryptocurrencies are keys to a successful retirement. While accusing the banking industry of putting millennials in hundreds of thousands of dollars of debt, Draper told Fox Business, “Cryptocurrency is the key to a successful retirement savings plan.” In effect, many young people are already doing so. As Rachel Wolfson writing on Bloomberg put it, “Interestingly enough, though, one of the main reasons millennials are investing in cryptocurrencies is to save for retirement funds.” Most notably, millennials can already invest their Bitcoin and other cryptocurrencies in an IRA. Bitcoin IRA allows the transfer of an IRA or 401K fund to a Bitcoin IRA. These Bitcoin-based instruments seem to be gaining traction. In January 2020, Bitcoin IRA announced, “[Bitcoin IRA] exceeded $400 million in cryptocurrency transactions after launching their 24/7 self-trading crypto IRA platform one year ago.” Do you think Bitcoin will soon become a mainstream retirement investment opportunity? Let us know what you think in the comments below. Images via Shutterstock, The Washington Post
Originally from Bitcoinist.com https://ift.tt/2v662so
Another week, another round of Crypto Tidbits. Wow, the past seven days have been quite the trip for Bitcoin, to say the least. After peaking at $10,500 last week, the price of the leading cryptocurrency plunged to $9,700, bounced to $10,300, then took a few hours to crash from that level to $9,250, liquidating hundreds of millions worth of leveraged positions in the process. The weekly data has echoed Bitcoin’s questionable performance. Per data from Coin360, BTC is down 2.6% in the past week. Altcoins, however, (save for Ethereum and Litecoin and a few other projects) have fared even worse: for instance, the two leading Bitcoin forks are down over 10% apiece and XRP has shed 10%. Aside from the tumultuous market, the underlying cryptocurrency industry saw a relatively productive week, with there being a number of news stories showing the growth and adoption of these technologies, though others casting light on issues in crypto. Related Reading: Crypto Tidbits: Bitcoin Slides Under $10,000, JP Morgan & Ethereum, and the US’ Cryptocurrency Crackdown Bitcoin & Crypto Tidbits Coronavirus May Push China to Launch Crypto, Says Ex-Banking Official: Per an article from China Daily — a newspaper owned by the Publicity Department of the Communist Party of China — Lihui Li, a former president of the Bank of China, said that the coronavirus epidemic unfolding will likely accelerate a national digital currency or national crypto. Li purportedly added that a digital currency from the PBOC is likely to benefit retail businesses by decreasing costs and increasing the efficiency of transactions. This was echoed by Fan Yifei, deputy governor of the People’s Bank of China. He said at a news conference held on Saturday that the central bank is going to accelerate its work in the mobile payment field. Bitcoin was not mentioned by these authorities. Bitcoin Fixes This: Danish Bank Introduces Negative Interest Rate: Bitwise’s Hunter Horsley recently shared the below image, showing that clients of Danish investment bank Saxo Bank will soon be subject to negative interest rates. All clients holding cash in EUR, CHF, or DKK will be subject to an annual rate of 0% to -3%. This means that if you’re in the worst bracket of -3%, a $10,000 deposit will see you lose $300. Saxo Bank, backing this decision, cited the European Central Bank’s decision to lower its policy deposit rate to -0.5% to stimulate the economy. Many see Bitcoin as an alternative to cash accounts because some suggest it has store-of-value properties, offering no yield but being a disinflationary asset whose value is mainly derived from scarcity. Saxo Bank sending an email informing the client they will start *charging* to hold cash in deposit accounts. 0-3% fee to hold cash. What a time to be alive — pic.twitter.com/JC4vTia3XQ — Hunter Horsley (@HHorsley) February 21, 2020 Coinbase Becomes Visa Principal Member: Announced in a blog post published Wednesday, Coinbase has become the ” first pure-play crypto company to be approved as a Visa principal member.” This means that moving forward, Coinbase’s crypto-enabled cards will involve better customer experience, “making it easier to spend cryptocurrency in everyday situations.” Mining Startup Begins Massive Bitcoin Operation In Texas: In a press statement shared with industry outlet The Block, Layer1 revealed that it has officially launched its Bitcoin mining operation in Texas, purportedly bringing online several containers that have a 2.5-megawatt capacity each. The exact extent of the farm wasn’t disclosed, though the statement mentioned that Layer1 is likely to control 2% of the entire Bitcoin network’s hash rate in the coming months. By the end of 2021, Layer1 wants to control 30% of all of Bitcoin’s hash rate through the Texas site and others they have control over. IRS Ramps Up Crypto Efforts: According to an IRS communique received by Bloomberg Tax, the IRS is calling upon crypto companies and executives to convene at a March 3rd summit that will discuss how the tax agency can “balance taxpayer service with regulatory enforcement.” The summit will purportedly involve at least four panels, during which information will be shared about crypto exchanges, compliance, and tax returns. This comes shortly after Steven Mnuchin, the Secretary of the U.S. Treasury, said in a hearing held by the Senate Finance Committee last week that the FinCEN branch of the Treasury will soon roll out “significant new requirements” for entities working with Bitcoin and other digital assets. Serenity Is Actively Being Developed, Ethereum Creator Confirms: Vitalik Buterin, the original creator of the blockchain, recently confirmed that the development of Ethereum 2.0 (or Serenity) is going on well. Buterin, during his speech at a recent event mentioned his thoughts on Ethereum 2.0, expressing optimism about the timeline for this blockchain upgrade, which will likely be the biggest upgrade or change made to any blockchain system, ever: [I] definitely think ETH2.0 has been proceeding quite quickly and regularly in the last few months. A member of the team researching and developing ETH 2.0, Justin Drake, wrote in a recent Reddit “Ask me Anything” regarding Ethereum that he has “95% confidence we launch in 2020.” SIM Swap Hack Sees Whale Lose $45 Million: According to a post published to the “BTC” subreddit by a user going by “Zhoujianfu,” they have just been hacked for a large sum of both Bitcoin and Bitcoin Cash (BCH). The addresses attached to the post, confirmed to be owned by the Reddit user through the signing of a message with a Bitcoin private key, suggest that $30 million worth of BCH (around 100,000 coins) and $15 million worth of Bitcoin (1,550 coins) were stolen. Featured Image from Shutterstock
EOS – like all major cryptocurrencies – has been seeing some turbulent price action over the past several days, with Bitcoin’s sharp drop incurred this past Wednesday sending shockwaves throughout the aggregated market. These shockwaves led EOS – a popular Ethereum competitor – to drop from over $4.50 to lows of $3.80, which is where it was able to find some support that helped bolster its price action. Now, analysts are widely noting that there are a few factors that could suggest EOS will see some notable upwards momentum in the near-term, with one trader forecasting major gains against the altcoin’s BTC trading pair. EOS Enters Consolidation Phase Around $4.00 as Technical Situation Grows Bullish At the time of writing, EOS is trading down marginally at its current price of $4.09, which is around where it has been trading at over the past couple of days. This past Wednesday, the crypto’s intense selloff led it to erase roughly one month of gains, as the crypto climbed from late-January lows of roughly $3.90 to highs of $5.50, before incurring some downwards momentum that led it to the mid-$4.00 region. This bearishness reached a boiling point when Bitcoin plummeted from $10,200 to lows of $9,200, subsequently leading EOS to drop in tandem to lows of $3.80. In the near-term, the cryptocurrency’s technical situation may be shaping up, however, as one prominent analyst’s trading algorithm recently flashed a buy signal for the token. CryptoGainz spoke about this in a tweet from a couple of days ago, noting that longing EOS could be one of the best plays at the moment. “New algo is also long eos, which, if I’m being honest, is probably the infinitely better play,” he explained. new algo is also long $eos, which, if I'm being honest, is probably the infinitely better play. pic.twitter.com/fvtTyXsNF3 — CryptoGainz (@CryptoGainz1) February 20, 2020 The Crypto Could Soon Post Massive Gains Against BTC Besides showing hints of bullishness against USD, the crypto is also flashing signs that it is positioned to see major gains against its Bitcoin trading pair. Livercoin – another prominent crypto trader on Twitter – spoke about this possibility in a recent tweet, telling his followers that EOS could soon rally from its current price of 0.00042 BTC to 0.0007 BTC before it finds any notable resistance. “EOS / BTC TA – Bought some,” he concisely stated. $EOS / $BTC TA – Bought some…#Crypto pic.twitter.com/YRVzXxHTfR — Livercoin (@livercoin) February 22, 2020 As Bitcoin enters a period of sideways trading around $9,600, major altcoins like EOS could start garnering enough buying pressure to further extend the firm uptrends that they have been caught within throughout 2020. Featured image from Shutterstock.
Bitcoin has proven to be by far the most profitable investment of the past decade, and the next ten years offer even more promise. The most successful BTC investors have followed a series of smart principles, which will be even more important for taking profits moving forward. Not Trying to Beat the Markets On the surface, it may appear that traders and market players make the most gains and that trading skills are needed to profit in the crypto space. In fact, the opposite is true. Slow, steady purchases of Bitcoin over the last several years have proven to be by far the best strategy for ordinary investors. For example, a simple monthly Bitcoin investment of USD $100 per month since January 2013 would now be worth well over $1 million. In fact, beginning this same simple strategy when BTC reached its all-time high in January 2018 would also be very profitable by now. Simply put, trading requires great skill, and most amateurs lose. Those that work in traditional financial markets have long understood this fact, and it is especially true for the crypto space. Thus, the best move is to be conservative and stay away from the trading game. Diversifying But With a Hint of Smartness Cryptocurrency is a new asset class, and blockchain technology is poised to revolutionize the global economy. Bitcoin’s ability to remain the top platform remains subject to debate, yet there is no question that other cryptos will find some measure of success. Like conventional investments, a mixed cryptocurrency portfolio is a smart move. Some altcoins have given incredible returns to early investors. Many have amazing long-term potential. Nevertheless, alts are risky, and should only be acquired after a thorough, independent evaluation, In other words, research is very important. A diverse crypto portfolio should still be conservative. More established altcoins should be a priority. Keep newer, less-popular platforms in only very small amounts, if at all. Keeping Bitcoin Funds Secure It is well-known that untold millions of dollars in Bitcoin have disappeared because of lost keys, forgotten passwords, and theft. Virtually all of this loss is due to human error. Smart investors make security a top priority. They never keep their funds on exchanges, and they always fully understand the processes by which their crypto funds are stored in their wallets. The well-known adage “not your keys, not your crypto” should be respected as cardinal truth. To properly store cryptocurrency, establish a clear, consistent methodology. Carefully write down keys and passphrases and store them in a secure location. Do not keep critical information in unencrypted computer files or in the cloud. Importantly, respect the fact that hard drives can crash, and files can become corrupted. The future is clearly bright for blockchain technology, and thus it is incredibly promising for those that seek to enter crypto markets. Nevertheless, following basic, conservative principles is the best means to realize the benefits of cryptocurrency investment. Are you a bitcoin investor or a trader? Image via Shutterstock
Originally from Bitcoinist.com https://ift.tt/37T1yCO
Bitcoin has found itself caught within the throes of a prolonged bout of sideways trading around $9,600 in the time following its recent flash crash that sent it reeling down from the $10,000 region to lows of $9,200. This multi-day period of sideways trading has resulted from the formation of a small and strong trading range between roughly $9,550 and $9,730. Now, one top trader is noting that the long-term significance of this range should not be discounted, as how it resolves could provide insight into where BTC trends in the year ahead. Bitcoin Consolidates as Resistance Begins Building At the time of writing, Bitcoin is trading down marginally at its current price of $9,650, which is around where it has been trading at since its significant drop seen last Wednesday. As this period of sideways trading drags on, it has also decreased the cryptocurrency’s trading volume slightly, suggesting that traders are beginning to move to the sidelines while they wait to see where the crypto begins trending next. It does seem as though the next key level that bulls need to recapture in order to maintain their strength sits at roughly $10,000, as the crypto’s reaction to this level in the past has been quite significant. In the near-term, it is important to keep in mind that Bitcoin is facing mounting resistance between its current price levels and $10,000, with Big Chonis – a popular analyst – noting that he sees “more resistance than support.” “BTC – all I see is more resistance than support weekend price action begins.” $BTC – all I see is more resistance than support…#bitcoin weekend price action begins … pic.twitter.com/WuU0eNndqd — Big Chonis Trading (@BigChonis) February 22, 2020 BTC’s Response to This Range Could Set the Tone for 2020 Another important factor to keep in mind is the fact that Bitcoin is currently caught within a tight trading range that could dictate its mid-term trend. Teddy – a popular cryptocurrency analyst on Twitter – spoke about this range in a recent tweet, explaining that the impact of Bitcoin’s ultimate reaction to this range shouldn’t be underestimated. “BTC: Don’t underestimate the impact of this small sub-range on the trend. A break in either direction will define the next short term direction and sentiment across the board. My short term bias since marking lower highs + lower lows is leaning bearish,” he explained. #BITCOIN | $BTC Don't underestimate the impact of this small sub-range on the trend () A break in either direction will define the next short term direction and sentiment across the board. __ My short term bias since marking lower highs + lower lows is leaning bearish pic.twitter.com/8RKmQFk55B — TEDDY (₿) (@TeddyCleps) February 22, 2020 How the crypto markets trend in the coming days and weeks should offer insight into whether bulls or bears will gain control of BTC, with its resolution of this range offering insight into where the crypto will trend in the months ahead. Featured image from Shutterstock.
Popular YouTube crypto analyst, Benjamin Cowen, has been considering the logarithmic regression band for the total cryptocurrency market cap in his latest video, and based on his analysis, thinks that the total digital asset market cap could hit $10 trillion during the next bull run. What’s A Logarithmic Regression Band? While it may sound like AI-generated musicians for psychotherapists to relax to, the logarithmic regression band is actually the range of values to which the crypto market tends to fall back when it is not in a bubble. It is represented by the green band on the chart below. The line forms a smooth curve overtime when plotted against a logarithmic value scale. At the peak of the 2017-2018 bubble/burst cycle, the total crypto market cap came very close to $1 trillion. However, it has since fallen back to the regression band and currently stands at around $290 billion. Diminishing Returns Each Crypto Market Cycle Plotting the difference between the total market cap and the lowest point of the regression band over time shows that the peak levels are becoming lower with each market cycle. This supports the theory of diminishing returns over time. Assuming this behavior continues, we can project a potential peak level above the regression band for the next major bull run. As an example, Cowen projects this happening in 2022, but of course, it could be earlier or later than this, if it happens at all. The potential outcome of this would be a total cryptocurrency market cap of around $10 trillion at the peak of the next bubble. In this scenario market cap is likely to oscillate within the regression band for a while before starting its climb. But What About $100 Trillion Bitcoin? Ah yes, according to PlanB’s stock to flow (S2F) model, the Bitcoin market cap alone is projected to go to $100 trillion. Cowen’s $10 Trillion market cap peak for the entire crypto market doesn’t sound so impressive against that prediction. Of course, the $100 trillion Bitcoin is still some way off in the future. The projected price increases in the S2F model happen because of the artificial limiting of supply over time. The next halving will happen in May this year. However, the $100 trillion projection isn’t due until another two halvings after that, or sometime in 2028. So, for now, a $10 trillion market cap by 2022 will have to do. At current Bitcoin dominance levels, a $10 trillion total crypto market cap gives a BTC price of around $330,000, so that’s something to look forward to. Do you think the total crypto market cap will hit a $10 trillion valuation in 2023? Share your thoughts in the comments below! Images via Shutterstock, YouTube: Benjamin Cowen
Originally from Bitcoinist.com https://ift.tt/2Pe8nZc
A 2013 video depicting a EU minister's tirade against the global banking system has gone viral and it's more relevant now than ever.
The post ‘The Banks Are Broke’: This Viral Video From 2013 Is More Relevant Than Ever appeared first on CCN.com
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Ethereum (ETH) is on a rising spree in 2020 w.r.t price. But its network is also established and increasingly proving quite significant. Bitcoin Supporters Should Own Some ETH for Upside Potential BTC blogger, Sylvain Saurel, looked at the reasons Ethereum is here to stay, and why Bitcoiners should not diss the project outright. Saurel believes Bitcoin (BTC) remains unique, but there are also good reasons to start owning at least some ETH tokens.
Saurel also believes ETH prices reflect the overall sentiment of the entire altcoin market and serve as a proxy for overall altcoin investment. “By buying and then hodling ETH from Ethereum, you ensure that you benefit from the significant potential success of many Altcoins based on Ethereum,” he explained. Instead of being spread to many illiquid altcoins, owning ETH may be a way to get exposed to any unpredictable altcoin season gains.
Distributed Apps, DeFi Boost to ETH Use Cases ETH is also a leader in the distributed app space, and thus, owning the token gives exposure to the growth in that sector. Granted, growth has been relatively slow, and there is yet to be a “killer app” to compete in the mainstream space. But owning ETH is a tool to potentially benefit from the growth of unexpected winners in the dApp space. “The dApps market is expected to grow in the future. The fact that Ethereum is a hegemonic leader in this field is another reason why you should seriously consider Ethereum for the future,” wrote Saurel.
A special class of distributed apps, the Defi space, is also highly promising. The space depends entirely on the Ethereum blockchain for its tokens and smart contracts. ETH as an asset is also highly important, as collateral and in pairings within decentralized exchanges. Growing activity in that space may regenerate demand for ETH, which fell after the ICO craze washed away. Defi is still a young and risky sector, as seen by the latest exploits in smart contract logic, which led to fast gains for the attacker. But Saurel believes the centrality of ETH is a good reason to add the asset to one's portfolio. The upcoming ETH 2.0 ecosystem, which will allow the staking of coins, becomes the last reason to avoid ETH just for the sake of being a Bitcoin maximalist.
Since its ICO and the initial stages of trading, ETH has established itself as one of the most powerful and long-running projects in the crypto space and has overcome multiple setbacks. Now standing at $260.63, ETH is also reigniting interest as once again entering a growth stage. What do you think of the potential of ETH to fulfill uses beyond Bitcoin? Share your thoughts in the comments section below! Images via Shutterstock, Twitter: @ssaurel
Originally from Bitcoinist.com https://ift.tt/2HIcxob
One often heard comment is how no banks will ever use Ripple or XRP. The recent addition of Bank of America to RippleNet seems to change that narrative significantly.
The RippleNet ecosystem connects hundreds of banks and financial service providers around the globe.
Bank of America Sees Merit in RippleNet
Getting more members on board remains an ongoing process.
Participants of RippleNet will be able to benefit from Ripple’s technology, including the XRP-powered On-Demand Liquidity solution.
The latest member to join the ranks is none other than Bank of America.
Given this company’s position in the US financial industry, it is a pretty big addition for Ripple.
To date, the company primarily noted big successes in Asia.
Expansion in the Western world has been relatively slow going, for some reason.
It is not the first time that Bank of America and Ripple join forces.
Both firms have successfully conducted pilot projects, albeit there were never turned into full-fledged services or products.
Given the evolving needs of customers, embracing innovative solutions is crucial for any financial institution.
It appears that BoA sees merit in RippleNet for its US-Mexico payment corridor.
If successful, an expansion to European markets is not out of the question.
All of these developments paint a very interesting picture for the future of Ripple.
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The number of new Bitcoin addresses with a non-zero balance is at an all time high, surpassing the number of new addresses hodling BTC when prices hit $20K back in 2017. Bitcoin’s Richest addresses: Not as many as you might think Twitter user @IncomeSharks shared charts from Bitcoin onchain metrics API and Data site Glassnode Studio today, which show a logarithmic representation of address growth across a range of different metrics. One chart shows that Bitcoin’s price is directly correlated with both the creation of new addresses and new addresses that are already actively hodl’ing. $BTC addresses with non-zero balances are at an all time high. What's more surprising is that we are even higher than when we near $20,000. Hard to not be bullish on this kind of distribution and adoption. @glassnode pic.twitter.com/bNvt78C5rD — Income Sharks (@IncomeSharks) February 21, 2020 The total number of Bitcoin addresses is 615,463,205 addresses, as of February 20th, the most recent data point. There are 28,728,292 addresses that currently have a balance above zero. Of these 28 million addresses, only 788,101 are addresses of wholecoiners, or having a balance of at least 1 Bitcoin. There are 154,689 wallet addresses with a balance of 10 or more Bitcoin. Wallets with a balance of 100 BTC or more, are even more scarce, still, with 16,247 containing 100 or more coins. The very elite Bitcoiners of the world are far fewer in number still, with only 2,156 addreses containing 1000 BTC or more The Bitcoin illuminati, the addresses with a 10K or more BTC balance are only numberes at 105. (Looking at you, Trace Mayer and Roger Ver) Also to note the number of addresses with more than 1 $BTC have continued to go up. There are lots more charts like this at https://t.co/4PBxBQ7S12 pic.twitter.com/ftNYzTOgS6 — Income Sharks (@IncomeSharks) February 21, 2020 As halving hype increases, so do new addresses New users have been onboarding to Bitcoin in record numbers recently, but the amount of high balances on those addresses are extremely small. While there is 7,806,710 addresses that contain a balance of 0.01, there are only 708K with a balance of 1 bitcoin. Even though Bitcoin at $9721.5 (at the time of writing) is expensive, and possibly unattainable for the majority of the inhabitants of developing economies, $9,700 is well within the grasp of many middle class investors, and those with a higher amounts of income. The fact that Bitcoin has the potential to become the world’s standard for value transfer, and only 28 million addresses are holding non-zero balances right now, shows that the investment side of things is still extremely asymmetric even a decade later. Those who believe they have missed the boat still have a very real second chance, especially with the hype surrounding the halving in May. Bitcoin’s value is tied to the laws of supply and demand, and, according to a popular stock to flow ratio chart, the event should deliver a promising surge. Do you think the rise in non-zero balance Bitcoin wallet addresses is a bullish sign? Let us know in the comments below! Images via Shutterstock, Twitter @Incomesharks
Originally from Bitcoinist.com https://ift.tt/3bRRs8F
There have been plenty of rumors regarding Sweden issuing a CBDC. The testing phase of the E-Krona has now officially begun, which is rather interesting to keep an eye on.
Many countries want to create a CBDC in the near future.
The Swedish CBDC is Very Real
The big question is whether there is a first-mover advantage to doing so.
In Sweden, the E-Krona CBDC is coming to fruition a lot quicker than anticipated.
In fact, Riksbank is preparing to begin a first pilot project for this new currency.
It will involve the use of blockchain technology, albeit no further details are provided in this regard.
Rather than replacing cash, the E-Krona will be complementary to cash in the country.
That is a remarkable decision, considering how Sweden is one of the countries where cashless payments rule supreme.
Riksbank will embark on this trial run with Accenture.
It is expected that this trial will run for a full year, until late February of 2021.
Given the length of this experiment, it would appear that this CBDC is further ahead in its development cycle than most people anticipated.
Based on the data collected from this trial, more CBDC ventures may pop upall over the world.
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The company has created a page on its website where foul-play can be reported. This move represents the increasing attempts by Ripple to establish itself as a key player in global finance. FRAUD CAN BE REPORTED, BUT FUNDS NOT REVERSED The reporting website gives consumers the ability to make the company aware of fraudulent behavior involving the XRP token. This behavior could include theft, scams, or unauthorized gateways/exchanges. The site makes clear that Ripple cannot reverse transactions, owing to the decentralized XRP ledger. Also, XRP users are not Ripple customers. Thus, an “unusual activity report” can be used to help identify and stop fraud, but not necessarily compensate victims. Interestingly, Ripple encourages users to report “potential sanctions violations, money laundering, unauthorized transactions and/or other financial crime.” In other words, it calls on the Ripple community to self-police, and inform the company of possible illegal activity. This fact underscores the close relationship between Ripple and XRP use, and the company’s firm desire to prevent any foul play with the token. RIPPLE PUSHING TO BECOME LEADER IN FINANCIAL SPACE This move is the latest in a series by Ripple in its goal of becoming a key player in global finance. The company has long asserted that it has major plans for expansion. CEO Brad Garlinghouse recently compared the company to Amazon, and noted that moving forward it would explore other services beside cross-border fiat transfers. To achieve its goals Ripple will need cooperation from regulators, politicians, and law enforcement on a scale yet to be seen in the blockchain sector. In this context, opening up a tool for fraud reporting, and demonstrating a strong willingness to fight crime, is a sensible move. Importantly, Ripple has not drawn the ire of the leaders that it needs to win over. For example, unlike Facebook’s Libra, which has been met with a torrent of opposition from world leaders, Ripple has received almost none despite being just as disruptive. Ripple’s position is, however, controversial among crypto advocates. Many blockchain purists have long criticized the company for its willingness to work with banks and regulators, asserting that the technology is designed to replace these institutions, not compliment them. Ripple and its executives disagree, claiming that cryptocurrency can only achieve mainstream use if it cooperates and enhances the existing financial infrastructure. Regardless of what one thinks of Ripple’s vision, its success in the blockchain space is without dispute. It now counts over three hundred banks as partners, and experienced over 500% growth in the fourth quarter of last year alone. What do you think about Ripple’s new fraud reporting procedure? Add your thoughts below! Images via Shutterstock
Originally from Bitcoinist.com https://ift.tt/2v94qyf
Vodafone, the UK-based cellular provider, recently showcased Bitcoin in their latest German advert which debuted on the company’s Facebook page on Feb. 17th. Many perceive this to be a low blow towards Facebook, after Vodafone left the Libra Association earlier this year. Is Vodafone sending a message to Facebook’s Libra? Future Friday | Bitcoin Gibt's bald Bitcoins statt Taschengeld? #FutureFriday Posted by Vodafone Deutschland on Wednesday, February 12, 2020 Vodafone is capturing attention from Bitcoiners with the new Bitcoin Ad on its Facebook page. Vodafone was one of the companies who were willing to pay $10 million to run a node on Facebook’s Libra cryptocurrency, as a member of the Libra Association. Libra’s network was initially planning on having partner companies run the PoS validation nodes for the crypto’s network for a healthy fee. After Facebook’s regulatory entanglement paused the forward momentum of Libra, 8 of the 10 companies who had signed up decided to walk away from the project. Vodafone was one of these companies who walked away, and they did so in January of this year. Some see the debut of a Bitcoin-centric Vodafone ad on the company’s Facebook profile as a veiled insult aimed at Facebook. Vodafone insists it left Libra to focus on the company’s M-Pesa peer to peer payments system, which has 17 million users worldwide. M-Pesa has revolutionized financial inclusion in Kenya and Tanzania, with plans for expansion many other developing nations. Banking the Unbanked M-Pesa has been extremely successful. It’s a system that allows users to load funds on to their mobile device and pay almost any kind of purchase, even for those without a bank account. M-Pesa uses sms-text messages and a PIN system to offer banking-like services to millions of consumers in developing economies. M-Pesa’s goals align with what many cryptocurrency enthusiasts see as “banking the unbanked”. So it makes sense that Vodafone would be interested in cryptocurrency as a way to improve the service, and bring costs down for its users. Since Vodafone has said itself that it is trying to focus on creating financial inclusion in developing economies, its possible that it sees Bitcoin’s open source and permissionless nature as the way forward. After seeing the amount of red tape facing Libra, the leading cryptocurrency may be a better option after all. What do you think of Vodafone’s Bitcoin ad on their FB profile? Let us know in the comments! Images via Shutterstock
Originally from Bitcoinist.com https://ift.tt/2V9AZGK
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The US Internal Revenue Service (IRS) is expected to ramp up its cryptocurrency-related enforcement actions, a tax law office warns. US Revenue Agency Looking to Crack Down on Crypto Tax Evasion The IRS has not been explicit on how would it treat taxes related to cryptocurrency transactions. On the other hand, the agency has made it clear that it intends to criminally investigate those who are knowingly ignoring to report such activities. US-based tax law office, Klasing Associates, concluded that cryptocurrency examinations and criminal tax prosecutions are likely to surge in the near future. The new Form 1040, updated last year, introduces a question on Schedule 1. It asks taxpayers whether they had received, sent, sold, exchanged, or acquired in any other way a financial interest in cryptocurrency, which the IRS calls virtual currency. That inquiry proves that the IRS is closely monitoring who are responsible among taxpayers and who are not. Why would they do that? The chances are that the revenue agency is warming up before seriously chasing after those who don’t comply with the reporting requirements. The IRS Criminal Investigation division admitted that crypto tax enforcement would become one of its main priorities from now on. Given that increasingly more US taxpayers have exposure to cryptocurrencies in some way or another, the IRS becomes more motivated to crack down on those who’re not interested in accurately reporting their crypto transactions on their annual tax returns. IRS Fails to Clarify on Crypto Guidance Last week, the US Congress watchdog Government Accountability Office (GAO), released a report carried out as a result to a request from Republican Kevin Brady, which touches upon the IRS’ current practices and public guidance related to crypto. The GAO recommended the IRS to clarify that some of the revenue agency’s guidance was not authoritative or binding. However, the IRS rejected this recommendation. The GAO report reads: Part of the 2019 guidance is not authoritative because it was not published in the Internal Revenue Bulletin (IRB). IRS has stated that only guidance published in the IRB is IRS’s authoritative interpretation of the law. IRS did not make clear to taxpayers that this part of the guidance is not authoritative and is subject to change. The GAO report supposes that returns from crypto trading might be underreported because the revenue agency had failed to clarify what should be reported. Thus, before the IRS intensifies its crypto-related enforcement actions, it should first improve its definition of virtual currency and clarify about the reporting process. It seems that the agency is trying to achieve this right now. Earlier this week, it has reportedly invited several cryptocurrency startups to take part in a summit scheduled for March 3. What do you think about crypto taxes in the US? Share your thoughts in the comments section! Image via Shutterstock
Originally from Bitcoinist.com https://ift.tt/2HK6krW
Changpeng Zhou, CEO of Binance, has strongly rebuked Maltese officials that have claimed his exchange is not authorized to operate in the island nation. Zhou asserts that Binance is not headquartered in Malta, but rather is a decentralized company. BINANCE CEO GIVES SHARP REPLY Zhou’s comments are surprising, as Binance has had an office in Malta since 2018. The company has also taken a series of steps that indicate integration with the Maltese economy, such as funding a malta-based cryptocurrency bank, and working with the Maltese stock exchange. Zhou addressed Binance’s status in a series of tweets: There are misconceptions some people have on how the world must work a certain way, you must have offices, HQ, etc. But there is a new world with blockchain now. Again, some of our community understands this, and some don’t. Hence, lots of confusion. — CZ Binance (@cz_binance) February 21, 2020 He has made it clear that he does not consider Binance to have a central headquarters: https://t.co/9rMMAmc1G9 has always operated in a decentralized manner as we reach out to our users across more than 180 nations worldwide. As well as pushing the envelope in experimenting how to become a true DAO (decentralized autonomous organization). — CZ Binance (@cz_binance) February 21, 2020 It is worth noting that the announcement by the Malta Financial Services Authority does not criticize Binance. Rather, it merely states that Binance does not presently have operations in the country that fall within the “realm of regulatory oversight.” It also notes that it is assessing Binance’s activities to determine their regulatory status. Thus, it is reasonable to assume that the Maltese government remains welcoming to the exchange, yet more should be done to ensure proper regulatory compliance. Binance was initially based in China, but left after the Chinese government became hostile to crypto exchanges. It also attempted to establish an office in Japan, but chose not to after clashing with Japanese regulators. ISSUE HIGHLIGHTS DIFFICULTY IN REGULATING BLOCKCHAIN TECH Zhou’s assertion that his exchange is a decentralized company may be technically correct. It has servers around the globe, many in secret locations. It operates almost everywhere, with employees in many countries. This type of organization is not unusual. Many large corporations have a multinational presence, yet still base themselves within the borders of one state. Should Binance continue down the path of seeking legitimacy on a global stage, it is all but certain that it will need to do the same. Binance, is, of course, unique in that regulating blockchain assets is a very difficult issue for global leaders. Until today it has been considered a Malta-based company due to the island nations’ crypto-friendly policies. Nevertheless, the extent to which this is the case is now unclear. Maltese regulators will likely clarify their stance on Binance in the coming days. They are no doubt aware of the tremendous potential of having a close relationship with the world’s largest crypto exchange. Exactly what this relationship will look like moving forward remains to be seen. What do you make of the latest breaking Binance news? Add your thoughts below! Images via Shutterstock, Twitter @cz_binance
Originally from Bitcoinist.com https://ift.tt/3bVPOTt
Blockchain analysis company, Chainalysis, will provide crypto exchange CornField with its Know-Your-Transaction (KYT) software, in a partnership announced yesterday. Chainalysis Extends its Reach CoinField will use the KYT software to identify high-risk cryptocurrency transactions in real time, receiving in-depth insights into the origins of each. Transactions can be traced on different blockchains, providing a graphical mapping of cryptocurrency transaction flow. The exchange will also use Chainalysis’ Reactor to further investigate suspicious activity or transactions which violate risk typologies. Chainalysis’ technology increases CoinField’s ability to exceed anti-money laundering requirements, proving its commitments to compliance. But the partnership also benefits Chainalysis, as Chief Revenue Officer, Jason Bonds, explained: CoinField’s mission to make cryptocurrency more accessible globally complements our mission to build trust in blockchains. We both believe compliance is critical to the mainstream adoption of cryptocurrency, and we look forward to partnering with CoinField to promote the safe use of cryptocurrencies globally. AML Implementation Growing In Crypto Space As Bitcoinist reported, Chainalysis previously partnered on an AML solution with Bitfinex cryptocurrency exchange. Bitfinex Chief Compliance Officer said that the “comprehensive compliance solution,” would help them, “to keep bad actors off of our platform, while protecting the privacy of our users.” Stablecoin Tether also got on board with Chainalysis this month, using the firm’s AML technology to “monitor the stablecoin’s usage across its blockchain, enabling the real-time tracking of suspicious transactions.” Anti-money laundering regulations are becoming increasingly tough for the cryptocurrency industry. Since the European Union’s 5th Anti-Money Laundering Directive (AML5D) went into force in January, digital assets have been specifically targeted. European nations have also implemented the regulations in slightly different interpretations, so rules vary across the bloc. Crypto firms in Austria, for example, could be fined €200k for failing to register for a license-application before the cut-off date of January 10. AML Is Not Just For Cryptocurrency… …although you might think so, with all the noise around anti-money laundering being directed at the crypto space. But AML rules have applied to (and been broken by) banks since before Bitcoin was a twinkle in Satoshi Nakamoto’s eye. And they continue to be broken by banks… rather a lot. Bitcoinist recently reported that the second biggest bank in Australia managed to break AML laws more than 23 million times in the period from 2013 to 2019. 23 Million… They must hardly have had time to do anything else. What are your views on Coinfield’s latest partnership with Chainalaysis? Add your thoughts below! Images via Shutterstock
Originally from Bitcoinist.com https://ift.tt/2SMpEeb
New Jersey lawmaker Yvonne Lopez is concerned. There is a lack of consumer protection in the crypto space and she wants to put that right by introducing new regulatory measures. A Bill Regulating Crypto in New Jersey New Jersey Assemblywoman Lopez is the prime sponsor of new legislation labeled the “Digital Asset and Blockchain Technology Act” (A-2891). In a release this Wednesday, Lopez explained that the bill has two main purposes. Primarily, it aims to protect consumers who “are not quite sure what [crypto] is.” At the same time, it proposes to establish “licensure requirements” for virtual currency businesses operating in the State. Lopez maintains that she wants the crypto industry to grow in New Jersey. However, this can only happen in the right regulatory environment. She stated: We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey. The innovation economy keeps New Jersey competitive, however we must also ensure consumers remain protected. This Digital Asset and Blockchain Technology Act accomplishes both of these goals and creates an infrastructure for the virtual currency industry to thrive in NJ! https://t.co/SiEEAuMz8q — Yvonne Marie Lopez (@AswLopez) February 18, 2020 New Jersey has recently become home to many small digital asset businesses forced out of neighboring New York. The recent capital expenditure requirements required to operate in the State are too difficult for many companies to meet. While Lopez welcomes emerging industries, she believes their activity must not go unchecked. There are currently no state regulations for the growing industry in New Jersey. Lopez commented: If we want to keep our economy innovative and competitive, we must welcome emerging industries to do business here in New Jersey. It’s also important that we establish fair and reasonable requirements for this new sector that will protect businesses and consumers alike. The Digital Asset and Blockchain Technology Act Under the new bill, for crypto-related businesses to operate in New Jersey they must acquire a license from the Department of Banking and Insurance. Failing that, they must be licensed in another state with which New Jersey has a “reciprocity agreement.” Cryptocurrency businesses must disclose their full legal names as well as any fictitious name that the individual applicant may use for conducting business. They must also provide a list of any prior attempts to gain a license elsewhere. This includes any revocations, suspensions or rejections. The bill also requires digital asset businesses to disclose any criminal convictions or pending proceedings against the applicant. They must also demonstrate that they have full AML and CFT policies in place. Lopez’s proposed legislation appears to aim at weeding out criminal activity rather than crippling companies’ growth with unreasonable demands. Co-founder of the Blockchain Association of New Jersey Guillermo Artiles expressed his support of the bill, saying: Those with businesses connected to these novel technologies are eager to ensure there are protections against questionable activities for the sake of the industry’s legitimacy. As a new industry, image is important… Everyone agrees that the industry has an exciting future — one right here in New Jersey. New Jersey’s Answer to BitLicense? If companies are starting to draw parallels between New Jersey’s bill and New York’s onerous BitLicense, it seems they can breathe a sigh of release. The requirements of Lopez’s bill appear to be a lot less intrusive and better-intended. Crypto businesses operating here will have to disclose the terms and conditions of a consumer’s account. However, this is only at the time when the consumer contracts the service. The disclosure must include all charges and fees involved and state whether the account is protected by the Federal Deposit Insurance Cooperation. It should also include extensive information for consumers about the risks associated with investing in digital assets. Lopez said: With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency. Do you think the proposed New Jersey crypto regulations are a good idea? Add your thoughts below! Images via NJTV, Twitter @AswLopez
Originally from Bitcoinist.com https://ift.tt/39TKhLa
There is always some degree of controversy in the cryptocurrecy space. This time around, the TRON community is on fire, albeit not necessarily for a positive reason.
The TRON ecosystem operates very differently from most other cryptocurrencies.
Juicy TRON Drama Emerges
Some users are representatives, but there are also Super Representatives.
One such SR is Justin Sun, the founder of this ecosystem.
He allegedly voted on two Tron Foundation apps.
Although that is not illegal by any means, it is something the community tends to frown upon.
Sun has always claimed he would never get involved in community voting, nor would the TRON Foundation.
As such, the “approval” of these two new apps raises a lot of questions.
Many community members are not too amused about this situation, for obvious reasons.
Until an official explanation is presented, there will be ample speculation.
Using the tokens belonging to the Zion account for community votes is simply unacceptable.
Elections are supposed to be community driven first and foremost.
Incidents like these highlight that this is not always the case by any means.
This will not affect the two applications in question, however.
Their “relation” to the Zion address voting remains unclear at this time.
For the TRON project, this can easily turn into a major PR nightmare.
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After releasing an update for their compromised Trinity wallet, the IOTA Foundation is directing users to change their passwords. More steps will soon be announced to ensure funds are secure. MANY IOTA ACCOUNTS MAY BE COMPROMISED Last week the Iota Foundation stopped its network, the Tangle, after hackers stole funds from at least ten high-value accounts. The foundation soon tracked the vulnerability to the desktop version of Trinity. The foundation states: Trinity users – If you opened #Trinity between Dec 17th 2019 – Feb 18th 01.30 CET 2020, you will need to use the seed migration tool to protect your tokens. Further details about the tool and migration period soon. All updates at https://t.co/3blzUVGJTE or https://t.co/vbg93hQBiG — IOTA (@iotatoken) February 20, 2020 The foundation is confident that only users that opened desktop Trinity during the specific date range are at risk. Nevertheless, it has also released an update for the mobile wallet, and is calling on those users to change their passwords out of an “abundance of caution.” Ledger Nano users do not need to use the migration tool, but it is strongly recommended that you change your password. — IOTA (@iotatoken) February 20, 2020 The password change is only the first step in resolving this issue. Users will also need to acquire new seeds, which are the 81 character keys that hold Iota tokens on the Tangle. The foundation promises soon to release a seed migration tool to enable this process. The network will not be restarted until after the tool has been made available. FULL REPORT PROMISED The IOTA Foundation promises a full report on this hack. The vulnerability appears to be connected to MoonPay, a service recently integrated into Trinity that enables users to purchase IOTA directly from within the wallet. The MoonPay feature does not appear in the patched version. Regardless of the cause, this is a serious breach of the IOTA platform. Although it appears that the hackers did not compromise the core protocol, they may have acquired a large number of seeds. Thus, users that do not use the migration tool will remain vulnerable. IOTA holders that have lost funds are encouraged to contact the foundation through its Discord channel. The foundation has stated that it is working on a remediation plan for the theft victims. It is unclear, however, if this plan will involve direct compensation or a chain reorganization. The foundation is also working with law enforcement to help locate the perpetrators. This event is one of many incidents of theft that have become common in the crypto space. It is proof positive that blockchain technology remains a work in progress, and that even very secure platforms can be made vulnerable. Before this incident, Trinity had been independently audited and was widely considered extremely safe to use. What do you make of IOTA’s recent wallet hack? Add your thoughts below! Images via Shutterstock, Twitter @iotatoken
Originally from Bitcoinist.com https://ift.tt/2wzMeOG
South Korean crypto exchange, Upbit, started to block withdrawals for its foreign users back in December 2019. Initially it was thought to be in response to the hack that took place, but now it seems it may have something to do with the company’s outstanding tax fine. Was the Upbit hack worse than initially reported? Over 6300 Chinese crypto traders have been prevented from withdrawing their funds held on Upbit since December when initial reports started coming in. The month prior, on November 27th, Upbit was hacked for 342,000 ETH. Many Chinese investors assumed that Upbit froze withdrawals while the hack was being investigated. As new information comes to light, however, this may not be the case at all. Now it seems that Korean customers have been able to withdraw funds again, while foreign customers have not. Foreign investors have speculated that perhaps the Upbit hack was actually much worse than reported. The account freeze may actually have to do more with fellow S. Korean exchange Bithumb’s recent $70 million dollar tax fine from S. Korea’s tax collection agency. Victims have speculated that their funds may have been used to pay taxes to avoid a Bithumb style “tax bomb”. Another factor, might be an Upbit executive’s recent prison sentence for fraud. Song, an Upbit Senior Executive, and a gang of accomplices used fake IDs to simulate 122 billion Korean Won worth of trading volume on the exchange. The whole situation for now is still unknown, as Upbit has failed to respond to inquiries regarding the circumstances of the frozen funds. Upbit has told foreign traders that they are implementing “stronger AML/KYC” for FATF compliance, and that customers who have already completed AML/KYC, can no longer withdraw funds in Korean Won. Foreign account holders may have to wait for an official decision from S. Korean tax authorities on whether or not they will be granted access to their funds again. This could take a long time. Foreign account holders are having a hard time mounting a defense Since Korean Upbit customers can still use the exchange without the same restrictions as foreign account holders, it is possible that Upbit is being forced to comply with new regulatory burdens, as they have stated. Foreign account holders have formed into several groups to try to collectively demand their funds back from Upbit, although it is difficult since they are scattered and are having trouble organizing a coherent response. Victims state that immediately after the hack they were asked to resubmit all AML/KYC information, which many had already submitted as early as 2017. The documents demanded were ID, Domestic proof of residence, Alien fact of landing certificate, and Alien landing certificate. As common with many AML/KYC account freeze scams from insolvent exchanges, they required the documents a second time under the excuse of “customer safety”. Customers with frozen accounts, who had already provided the information, and are stuck without their money, are wondering how they are any safer? Did the Upbit hack, S. Korea’s new tax burdens for crypto exchanges, and fraudulent trading by a Senior Executive create a perfect storm to leave one of S. Korea’s largest exchanges insolvent? Only time will tell. Do you think Upbit will give investors their money back? Let us know in the comments! Images via Shutterstock, Twitter
Originally from Bitcoinist.com https://ift.tt/2vMuUWd
A series of large-scale transactions confused the markets today, after a unusual movement of 300M USDT tokens took place. Tether and Binance Cooperated on the Whale Transaction and Token Burn The Tether minting wallet that generated a transaction of 300 million USDT was immediately caught by whale watchers today. The transaction arrived at a time when Bitcoin (BTC) was once again sliding below $9,600, and the initial minting was viewed as a possible attempt to rescue the markets. 300,000,000 #USDT (300,321,318 USD) minted at Tether Treasury Tx: https://t.co/0pAllfCsO2 — Whale Alert (@whale_alert) February 20, 2020 But the Tether wallet went on to move the tokens, and eventually ended up burning the entire amount only a few moments later. 300,000,000 #USDT (300,731,687 USD) burned at Tether Treasury Tx: https://t.co/xcJaGhifRb — Whale Alert (@whale_alert) February 20, 2020 Twitter commenters noted the burned tokens diminished the supply of Tether on the TRON network by 300 million tokens. With this move, the TRON network now carries a significantly lower amount of tokens, around 536 million at the time of writing. Previously, the supply on TRON grew almost unrestricted, closing in on one billion tokens at its peak. At last, the transaction was identified as originating on Binance. The exchange assisted USDT in switching platforms for the 300M tokens, thus growing the supply of ETH-based USDT to a record level. .@Tether_to and @binance have completed a chain swap of 300,000,000 $USDT from #Tron to #Ethereum. This brings the total number of minted ERC20 $USDT to 2,658,282,552. https://t.co/bBLA9HfT4n — glassnode (@glassnode) February 20, 2020 The current supply of Tether tokens has now fallen to about 4.62 billion. Of those tokens, 2.62 billion are now on the Ethereum blockchain. The newly activated Algorand-based USDT so far shows no activity. The newly minted tokens managed to fool the market for a few minutes when BTC recovered slightly, but then the exact intentions of the transaction started to emerge. Falling Supply Suggests No Bailout for Markets With the latest move, the crypto markets are entering a period of potential corrections with a much lower supply of USDT than before. The USDT stablecoin is more widely spread across exchanges. Binance, which at one point held above 700 million tokens, now has one identifiable wallet with about 300 million tokens. Other markets show lower amounts of USDT. USDT held much higher significance for the BTC market, before the arrival of futures markets. The inflows of USDT on spot markets are not as influential in setting the price direction. Still, heightened USDT activity draws the attention at a time when cryptocurrency markets are stood at another crossroads. What do you make of the recent Tether activity? Add your thoughts below! Images via Shutterstock, Twitter @glassnode @Whale_alert
Originally from Bitcoinist.com https://ift.tt/2wr71DR