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Buyer’s Remorse? Cryptocurrency Lawsuits Have Tripled Since 2017

Cryptocurrency lawsuits increased threefold in the first two quarters of 2018 compared to the whole of last year.

This is according to a report prepared by Lex Machina, a legal analytics firm. Last year, the number of cases mentioning bitcoin, cryptocurrency or blockchain amounted to just 15, but in the first and the second quarters of this year, the figure has risen to 45. If the current trend continues, this means that the increase will likely be more than six fold by the end of the year.

Of all the cases that have been filed so far in 2018, the U.S. Securities and Exchange Commission was responsible for around a third, according to the National Law Journal. This coincided with the current chairman of the SEC, Jay Clayton, announcing a crackdown on the sector. Clayton was nominated to the position in January last year though he was formally inducted five months later.

The surge in the number of cases seems to have also coincided with the fall in the price of bitcoin and other cryptocurrencies from their record highs. Specifically, there were only seven cases relating to bitcoin, blockchain or cryptocurrency in the fourth quarter of last year but this more than tripled in this year’s first quarter.

“[T]he first two quarters of 2018 saw a significant rise in the number of securities cases relating to cryptocurrency or Bitcoin,” the legal analytics firm wrote in a statement. “Using Legal Analytics’ keyword search functionality, Lex Machina discovered case filings relating to this emerging area surged from seven cases in Q4 2017 to 22 cases in Q1 2018 Q1 and 23 cases in Q2.”

Among the high-profile firms in the crypto space, Ripple Labs and Bitconnect are among the companies facing lawsuits in the United States. Recently, Ripple got a reprieve in one of the lawsuits after it managed to reach a settlement with blockchain tech firm R3.

The dispute between the two firms came after the severance of a partnership deal which had allegedly stipulated that R3 would have the right to acquire XRP tokens totaling up to five billion at a price of US$0.0085 per unit till the end of next year. At the beginning of the year when XRP tokens were trading at nearly US$4 per unit, the value of the legal dispute was approximated to be close to US$20 billion.

In the case of Bitconnect ,which has been accused of running a Ponzi scheme, one of the lawsuits against the firm was filed in the state of Kentucky in January this year. This was after being issued with cease-and-desist orders in North Carolina and…ipled-since-2017/

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China’s Crypto Custody Sector Is Growing despite the Mainland Ban.

The debate on whether the central authorities can ever regulate the cryptocurrency industry intensates further with the launch of a Chinese crypto-startup.

In a right-in-your-face stunt, InVault begins offering its cryptocurrency custody services last week in China despite the mainland ban. The Shanghai startup proposes to attract cryptocurrency exchanges as its primary clients, believing they should avoid the moral hazard of holding clients’ assets.

A custodian, in a traditional sense, holds clients’ securities or cash for safekeeping – in both electronics and physical form. China’s implicit ban on keeping and trading cryptocurrencies could arguably disallow an organization to hold assets that 1) are virtual currencies, and 2) belongs to companies with no legal status in the mainland.

But InVault seems to have found a way to circumvent the ongoing crackdown. The startup offers a decentralized corporate cryptocurrency wallet service, meaning that there would not be a central control over the safeguarded funds. InVault will instead be the custodian of users’ private keys. Local media reports hint that the startup will keep the users’ private keys secured in several Physical Vaults. Only authorized personnel will have access to these safes.


Kenneth Xu, chief executive and founder of InVault, said the only way by which cryptocurrencies can be secured is with the absence of human oversight.

“Today, the vast majority of cryptocurrency exchanges globally still involve their senior management in managing the transfer of digital tokens ordered by clients. Putting the private keys to your cryptocurrency assets in the hands of senior management is akin to putting all your money in their control,” said Xu, speaking to the South China Morning Post.

China’s Crackdown Insufficient to Enforce Crypto-ban

The launch of InVault occurs during tensed times. China’s financial and market regulators had recently stepped up its crackdown against the local crypto operations. During the chase, they blocked access to 124 offshore crypto-exchanges that were providing trading services to Chinese investors, banned events that were to discuss cryptocurrencies and enforced local companies, including WeChat and Alibaba, to monitor and report their users involved in crypto activities.

Chinese crypto companies continue to offer services to Chinese investors from offshore despite the ban. KYC-enabled money exchanges have been replaced by peer-to-peer commerce, which could dampen the regulators’ efforts towards enforcing the crypto-ban overall. Furthermore, fugitive exchanges have started to work under the different domain names, making it difficult for regulators to improve their mouse-chase.


Terence Tsang, the chief operating officer of TideBit, which offers centralized crypto-exchange services in Hong Kong and Taiwan, said in a statement to the local press:

“The latest warning and potentially increased monitoring of foreign platforms is targeted at a batch of smaller exchanges that had claimed to be foreign entities, but are in fact operating in China claiming they have outsourced their operations to a Chinese company.”

Meanwhile, InVault has already scored its first major deal from an undisclosed cryptocurrency exchange for the custodianship of one million Ethereum tokens.

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Samsung SDS to Power World’s First Exports Customs Clearance Blockchain in Korea.

The Korea Customs Service (KCS) has entered an agreement with Samsung SDS to implement the latter’s blockchain technology for an export customs clearance system.

Samsung SDS, the IT subsidiary and technology provider of Korea’s largest conglomerate Samsung, will develop the world’s first blockchain-based export customs logistics service for the Korea Customs Service to enable efficiency and curb fraud in the industry.

A memorandum of understanding between the two entities also sees 48 other organizations and companies including relevant government authorities, shipping operators, logistics firms and insurance providers join the agreement, a press release said.

Samsung SDS will use Nexledger, its enterprise blockchain platform, for the customs platform to fundamentally share export-related documents seamlessly between stakeholders in every step of the export trading process from manufacturing, storage, customs declaration to final delivery of the shipment.

Launched in April 2017, Nexledger acts as a cloud computing solution for corporations and government authorities like the KCS to build their own services as an added layer. The core platform enables real-time transaction processing in scale, smart contracts as well as a management monitoring system developed for various industries including finance, manufacturing and the public sector.

For instance, the Seoul metropolitan government chose Samsung SDS to apply Nexledger tech for the capital city’s entire municipal administration by 2022 to enable transparency and improve citizen convenience.

Since its launch, Nexledger’s biggest impact remains in Korea’s logistics industry. In May 2017, Samsung SDS launched a blockchain consortium with government authorities including the KCS, Korea’s Ministry of Oceans and Fisheries, logistics giant Hyundai Merchant Marine and tech giant IBM Korea.

The endeavor saw Nexledger’s tech successfully power a Korea-China shipment trial a year ago. The 7-month pilot to record and track shipping logistics and documents related to both exports/imports concluded in December 2017.

As reported by CCN in May, the KCS and Samsung SDS began developing the customs clearance platform to issue Certificates of Origin, a crucial international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country, on a blockchain.

The KCS confirmed a full pilot of the dedicated blockchain platform in June.

Nexledger is also being adopted by Korea’s commercial banking industry to power a new customer ID verification platform that improves on a decades-old public certification system.

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SBI Nears Launch Ripple Blockchain Payments App ‘MoneyTap’ in Japan.

Japanese financial services group SBI Holdings will launch its consumer payments application MoneyTap, on both Android and iOS, using Ripple’s blockchain technology.

SBI Ripple Asia, a joint venture established by SBI Holdings and San Francisco-based FinTech giant Ripple in early 2016, will soon launch ‘MoneyTap’, CEO Takashi Okita revealed on his own Twitter handle.

MoneyTap is the first real noteworthy application of Ripple’s blockchain tech for consumer-ended retail payments in Japan, enabling domestic bank customers to transact instantly 24 hours a day and seven days a week using a QR code, a phone number or a bank account number.

There is no indication – it’s also unlikely – that the technology uses XRP, Ripple’s native crypto token.

Zengin’, Japan’s decades-old national payments clearing platform, only allows domestic money transfers between users of different banks between 8:30 AM and 3:30 PM in Japan, with the added pitfalls of banking fees.

As reported by CCN in March, MoneyTap was initially announced by the SBI Ripple-led banking consortium that comprises of over 80% of Japan’s banking assets. The Japan Bank consortium was first launched in November 2016.

MoneyTap’s website does not provide a specific launch date for the mobile app but does reveal the user interface (UI) while confirming the proposed launch, in fall this year (September-December).

At launch, customers belonging to three members of the consortium will be able to use the service before its eventual rollout to the remaining 59 banks of the consortium. Thee three banks supported at launch are Suruga Bank, SBI Net Sumishin Bank and Resona Bank.

Still, MoneyTap isn’t the first consumer-based retail payments application using Ripple’s blockchain technology.

In April, Spanish banking giant Banco Santander launched a personal payments app for retail customers in Spain, the United Kingdom, Brazil and Poland. The smartphone app enables near-instant transfers, end-to-end tracking of payments with complete transparency of foreign exchange fees, all in “3 clicks and 40 seconds” according to Santander. This particular solution uses Ripple’s enterprise blockchain software xCurrent, a product that does not use XRP.

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Lawsuits Involving Cryptocurrency Hit All-Time High.

Lex Machina, a legal analytics platform, announced Sept. 11 the release of its 2018 securities litigation report that showcases recent trends and insights from its database of over 15,000 securities cases litigated in federal district court since 2009. The new report reveals the first two quarters of 2018 saw a significant rise in the number of securities cases relating to cryptocurrencies, such as bitcoin.

According to the report, the number of cases mentioning bitcoin or blockchain in all of 2017 amounted to a total of 15, but in the first half of 2018 alone, the figure rose to 45. Among its key findings, the report reveals that during the 18 months following the nomination of Jay Clayton as SEC chairman in January 2017, securities case filings were at an all-time high (2,622 cases — a 60 percent increase over the preceding 18 months).

"Securities lawsuits filed over cryptocurrencies or bitcoin have tripled so far this year as SEC chairman Jay Clayton announced a crackdown on that industry," according to the National Law Journal. "The SEC, which has vowed to scrutinize cryptocurrencies and initial coin offerings, was responsible for 30 percent of the cases filed in 2018, that’s the second-most popular filer of such cases, topped only by the law firm Levi & Korsinsky," it added, quoting Laura Hopkins, a legal data expert at Lex Machina.

The increase in the number of cases seems to have also coincided with the fall in the price of bitcoin and other cryptocurrencies from their record highs toward the end of 2017. Specifically, there were only seven cases relating to bitcoin or cryptocurrency in the fourth quarter of last year but that number tripled in this year’s first quarter, according to the report.

Among the high-profile firms in the cryptocurrency space, San Francisco-based blockchain startup Ripple Labs, and Bitconnect, described as a high-yield investment program, were among the companies facing lawsuits in the U.S.

Recently, Ripple Labs reached a settlement over a lawsuit brought against it by enterprise blockchain startup R3. The legal battle started when R3 sued Ripple in September 2017, after a partnership deal between the two sides fell apart. The deal allegedly arranged for R3 to have the right to buy 5 billion XRP tokens, at a price of $0.0085 per token, till the end of 2019, in return for R3 promoting Ripple's blockchain technology to a number of banks. Both sides accused each other of violating the agreement. At the beginning of 2018, when XRP tokens were trading at nearly $4 per unit, the value of the tokens owned by R3 amounted to almost $20 billion.

In the case of Bitconnect, the cryptocurrency was suspected of being a Ponzi scheme. Bitconnect said it would refund all outstanding loans in form of BCC (token name). However, the cryptocurrency's market price declined to less than $10, making the payments worthless. In January, BitConnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina issued a cease and desist order against it.

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Coinbase Plans for Aggressive Hiring in its Institutional Sector The firm plans to increase its manpower by more than seven-fold in its new office in New York.

Coinbase, a digital currency exchange headquartered in San Francisco, is planning a massive hiring spree for its newly opened institutional-focused office in New York. Specifically, the firm expects to increase its manpower by more than seven-fold, from its 20 employees to 150 employees next year.

The company’s New York office was officially opened last Thursday and caters to institutional clients. The reason for the location is obvious – the city is considered to be a large hub for institutional investors with keen interests in blockchain and cryptocurrency.

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Furthermore, New York is also home to the New York State Department of Financial Services (NYDFS), which is the governing body that issues the BitLicense, the common term used for a business license of virtual currency activities, in the country.

The opening of the new office represents a shift in the company’s focus. Previously, retail investors had been the target clients for its operations. However, Coinbase’s head of institutional sales, Christine Sandler, told Coindesk that this new direction won’t conflict with its previous focus.

In fact, she believes that institutional investors are the key to cryptocurrencies becoming mainstream. Specifically, she said: “We want to partner with appropriate institutions to help the whole ecosystem grow. It’s not ‘institutional or retail,’ because a lot of these institutions will be distributors.”

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Adam White, the general manager of Coinbase Institutional added that: “When we saw the market begin to correct, which we all expected, institutions didn’t lose interest. It was exactly the opposite.”

Coinbase plans to expand outside of America

To achieve its goal, the firm needs to bolster its team in New York. During an event on Thursday, which celebrated the opening of Coinbase’s first permanent location in New York White said that New York “is an incredibly deep pool of talent.”

White added: “We have to create a bridge between financial services and technology. In order to do that, we need to pull from some of the best and brightest minds that have worked their whole careers in other kinds of traditional financial firms.”

A decent portion of Coinbase’s current New York-based team is comprised of former employees of traditional financial institutions, such as the New York Stock Exchange, Barclays, and Citigroup.

Its expansion in New York follows a large hiring spree from the company already. So far this year, Coinbase has been building its team at a fast pace and the firm now has more than 500 employees across the world. This is despite the bear market which has been dogging the crypto markets this year.

However, New York isn’t the only location where the firm is building up its institutional clients and recruits. In fact, the company is eyeing expansion into Asia and Latin America soon. Earlier this year, Finance Magnates reported that Coinbase opened an office in Japan. So far the company has hired a small team and has applied for a Financial Services Agency certification in Japan.

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Leaders in tech, government and business are gathering in Bali for XBlockchain summit held in parallel to the 2018 annual meetings of the IMF and World Bank Group.

BALI, Indonesia, Sept. 16, 2018 /PRNewswire/ -- Leaders in blockchain technology are only three weeks away from assembling in Nusa Dua, Bali for Asia's pre-eminent summit on blockchain technology promising to change traditional industries and forge new ones. The event will occur on October 9 - 10 which is the same week as the annual meetings of IMF and World Bank, also this year in Bali.

This summit is being organized jointly by the Indonesian Blockchain Association (ABI) and XBlockchain. It will cover similar themes, such as international wealth transfers and financial inclusion, to the IMF-WBG, but it will be devoted to exploring real-world instances of the application of blockchain, which has been heralded with so much potential.

The XBlockchain Summit 2018 will host debates with global leaders from the United Nations, IBM, Deloitte, Stellar, Pundi X, and leading blockchain representatives and experts from various Asian industries, countries and government. Global leaders will speak to topics spanning every use of blockchain: healthcare, financial inclusion, supply chain management, high finance, music, gaming and much more.

The Minister of Finance for Lithuania, Vilius Sapoka will provide the European Union's views on regulation and share his views on how forward-thinking and friendly regulation in addition to suitable infrastructure can accelerate the adoption of blockchain technology for progressive nations.

Speakers of the summit will include Susan Oh of United Nations' Blockchain for Impact, Inge Halim of IBM Indonesia, Paul Sin of Deloitte's Asia Pacific Blockchain Lab, Chia Hock Lai of the Singapore Fintech Association and many more from the USA, Europe, Australia and Asia region.

Stellar's founder McCaleb will cover the future adoption of blockchain technology, and how his establishment of new global infrastructure for cross-border transfers allowed him to reach the general public. Pundi X CEO and Co-founder Zac Cheah will reveal the next generation of blockchain technology for real world implementation.

Entrepreneur-turned-legislator Jason Hsu of Taiwan will talk about The State of the Digital Economy, Blockchain, and Regulations as he draws from an extensive background in policymaking, having authored such laws as the Fintech Sandbox Act and Angel Investment Law. Hon. Dharmendar Sesungkur, Minister of Financial Services and Good Governance, Republic of Mauritius, will also address his work in making Mauritius a global blockchain centre.

Networking sessions will take place during the 2-day summit including an invite-only exclusive high-level meeting taking place as well called "Blockchain on the Yacht" atop the Bali sea.

"Just weeks out we are thrilled to announce that we will be having global speakers, exhibitors and high-level discussion sessions at the summit," said Steven Suhadi, Chairman of Asosiasi Blockchain Indonesia. "The Summit has indeed become one of the most anticipated events in the realm of digital technology not just in Indonesia, but in the Asian region as well,"

With slots quickly filling up, those interested to join the Summit are encouraged to purchase their passes as soon as possible. Ranging from $150 to $250, participants will get access to the Main Conference, Business Matchmaking Tools, XBlockchain Awards & Party, XBlockchain Lounge, and Exclusive Access to the XBlockchain Leader's Dinner.

About Xblockchain

In its inaugural year, XBlockchain is committed to building the region's most influential platform for blockchain innovators.

With our extensive network of international and domestic partners, XBlockchain promotes communication and collaboration, and provides an open innovation platform to connect enterprising individuals, developers, startups, established organizations, government agencies and investors who seek to foster a spirit of positive disruption in the field of blockchain.

XBlockchain creates the blockchain industry's flagship event - the XBlockchain Summit, which is a global, top-level, private, invitation-only network for attendees spanning blockchain innovators and representatives from different industries and government

XBlockchain seeks to highlight the positive developments being made by the blockchain industry and believes that technology can enhance the traditional order and make it more effective and efficient.

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5 Promising Cryptocurrencies under $10 to invest in for 2018–2019 From Zero transaction fees to helping content creators. Can these cryptocurrencies perform well into 2019?

The question of the “best” cryptocurrency to invest in over the next 2 years is not a simple one, there are a lot of great cryptocurrencies in this market.

What we can look at are some of the cryptocurrencies which look very promising.

Promising Cryptocurrencies:

NANO?—?Nano has zero transaction fees, 2 second transaction times and the whole network is built on a unique “Block Lattice” instead of a Blockchain or Tangle.

With Block Lattice, every user has their own blockchain which speeds up transactions by reducing the number of transactions a single blockchain has to make.

In fact with more users on the network, the faster transactions are processed and this solves one of cryptos biggest problems, SCALABILITY.

BAT?—?Basic Attention Token is a cryptocurrency founded by the creator of Javascript and co-founder of Mozilla Firefox, Brendan Eich.

BAT can be used by content creators, advertisers and viewers/users in a new ecosystem that will take place on the Brave Browser.

Brave is an already released web browser that automatically blocks adverts and BAT is intended to be used on this browser in many ways which include:

  • Supporting your favourite content creators through donations or Patreon style subscription services.
  • In-app purchases
  • Receiving BAT after watching an advert
  • BAT could be implemented by popular browsers like Chrome or Firefox to compensate advertisers and creators affected by AdBlock software and YouTube demonetisation.

BAT could help content creators to continue their online businesses whilst keeping advertisers and viewers happy, allowing viewers to be rewarded in BAT for watching an advert and advertisers continuing to promote their products.

XLM?—?Stellar Lumens has 2 second transactions and transaction fees cost a fraction of a cent, on top of that Stellar can be used as a blockchain based development platform like Ethereum.

Since Stellar’s blockchain is faster and cheaper to use than Ethereum, some companies have moved their projects from the Ethereum blockchain.

Since XLM can be quickly and cheaply transferred, companies like IBM as well as some banks have been using XLM to transfer money.

Wild Cards:

XVG?—?I know Verge has some haters but at the end of the day this coin has performed, I invested in Verge last summer when the price was around $0.002 and took some profits when it reached 19 cents ($0.19) in December.

To top it all off Verge has made a partnership with PornHub which could be an additional gateway to mass adoption.

Okay, enough about Verge’s performance, here it was it does. Verge obscures the IP Address and location of its users, however the thing about Verge is that they use an open ledger instead of a private one.

The reason for this is so companies can can see the transaction amounts, thus leading to mass adoption, this is the explanation given by the Verge developers.

So basically Verge just hides the location and identity of the users but transactions themselves are not hidden.

EOS?—?EOS plans to position itself as a competitor to Ethereum, being able to enable the development, hosting and deployment of commercial scale decentralised applications (dApps).

The developers of EOS claim that it will solve scalability and usability problems with cryptocurrency.

EOS plans to achieve this through parallel processing, rules that require a consensus to be approved, 5% inflation and a decentralised operating system.

They have bold ambitions and were rumoured to be an “Ethereum Killer™” in it’s early days.

Now I’m not too sure about the Ethereum Killer™ thing but if they can deliver on their plans then I believe they will have a place in crypocurrency’s future.

You can use BitPanda to invest directly in BAT, XLM and EOS with cash if you live in Europe.

If you don’t live in Europe, you can use Binance to buy Nano, BAT, XLM, XVG and EOS using Bitcoin or Ethereum which you can get from CEX (You can also find Stellar XLM here).

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Ethereum Co-Founder Invested in Bitcoin at $1 in 2011, What’s Changed?

Charles Hoskinson, the co-founder of Ethereum and Cardano, entered the cryptocurrency sector when Bitcoin was valued at just over $1. Since then, the infrastructure supporting the market and blockchain systems has changed drastically, at an exponential rate.

Bitcoin price in 2011, chart provided by 99Bitcoins

In an interview with Mpho Dagada, Hoskinson, the CEO of IOHK, a technology company that leads the development of Cardano (ADA) and Ethereum Classic (ETC), said that he first engaged in the cryptocurrency sector by mining Bitcoin in 2011, when the dominant cryptocurrency was worth about $1.

In 2013, as the price of Bitcoin increased by 250-fold from $1 to $250, Hoskinson decided to be involved in the sector, with passion to lead major projects.

Meeting Vitalik Buterin, After Differences With EOS CTO Dan Larimer

Initially, Hoskinson revealed that he was approached a Chinese entrepreneur to create a stablecoin for $500,000 in funding. At the time, Tether (USDT) was not around, and there were no stablecoins in the market investors could utilize to hedge the value of cryptocurrencies to that of the US dollar.

After rejecting the offer, Hoskinson met Dan Larimer, the creator of BitShares, to work on the first decentralized cryptocurrency exchange platform. However, Hoskinson eventually left the company due to the differences between himself and Larimer, and met Anthony Di Iorio and Vitalik Buterin to create Ethereum.

Hoskinson said:

“[Anthony told me] There’s this kid called Vitalik, at that time he was 19, and he’s writen this great white paper. I can’t really make heads or tails of it. Can you read it? Let me know what you think. And I said sure, Anthony. So I read the paper, was very rough but I said, there’s something here and that’s how I met Vitalik Buterin.”

In 2014, at the North American Bitcoin Conference in January of 2014, Hoskinson and the rest of the founding members of Ethereum including Buterin, Di Iorio, Joseph Lubin, and Gavin Wood met, to officially develop and launch Ethereum.

“The North American Bitcoin conference in January 2014. So Anthony rented a beach house, we all bought her own way. There we met everybody, Joseph Lubin, Gavin Wood came, a lot of the big guys now who were not so big guys back then came and that was really the birth of a Ethereum,” Hoskinson added.

4 Years of Exponential Growth

Since 2014, the cryptocurrency sector has demonstrated exponential improvement in market infrastructure, blockchain systems, and scalability. The launch of Ethereum in 2014 paved the first path towards decentralized applications (dApps) and the first decentralized computing system in the world.

Ethereum also enabled the initial coin offering (ICO) market, which enabled blockchain projects to raise billions of dollars to develop blockchain protocols. Interestingly, EOS, the biggest ICO in history having raised over $4 billion, was led by Dan Larimer.

After founding Ethereum, Hoskinson launched Cardano in 2015, the first Proof-of-Stake (PoS) blockchain protocol, built specifically to handle dApps and payments with two seperate layers to maximize scalability.

In parallel to massive progress in development, the price of Bitcoin achieved a new all-time high at $19,500. Although Bitcoin has fallen to $6,500 in the past nine months, since 2011, Bitcoin has demonstrated a 6,500-fold return.

The largest regulated financial institutions like Citigroup, Morgan Stanley, and Goldman Sachs have started to commit to cryptocurrencies, with increasing interest from investment firms and institutions.

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BitGo Receives Approval to Operate as Regulated Cryptocurrency Custodian

Blockchain security startup Bitgo has announced that it has received regulatory approval in the U.S. to offer cryptocurrency custody services. With the move, BitGo becomes the latest company to throw its hat into the crypto custody ring as the market prepares to welcome large institutional investors who have previously been put off by crypto’s substantial custody risk.

BitGo announced on Thursday, Sept. 13, that it had received this regulatory approval in the form of a state trust company charter from the South Dakota Division of Banking. With the move, it now becomes the only regulated custody service available on the market that is offered exclusively for digital asset storage.

‘Missing Piece’

While the crypto market has been in a downturn for much of 2018 and BitGo is potentially opening itself to a level of regulatory scrutiny that other cryptocurrency startups do not face, co-founder and CEO Mike Belshe believes that the market reception for a regulated crypto custody offering will make any sacrifices worth it.

In his words:

“This is the missing piece for infrastructure — it’s a treacherous environment today. Hedge funds need it, family offices need it, they can’t participate in digital currency until they have a place to store it that’s regulated […] This is early stages in an industry that’s volatile right now. We’re in a down cycle in terms of where we’re going, but the institutions see an opportunity. It’s going to progress quickly.”

With the approval, BitGo is now required to regularly file financial audits and comply with AML and KYC regulations in addition to monthly disclosure filings. According to Belshe, the plan is for BitGo to eventually become a broker-dealer, but at the moment there is no set timeframe for this to happen.

Cryptocurrency Custody is a Growing Opportunity

BitGo joins a growing number of companies with cryptocurrency custody offerings including Citigroup, Coinbase and Gemini, all of whom are targeting the same institutional investment market ahead of the expected entry of traditional investment. Bernstein analyst Christian Bolu belives that there is sufficient space for new market entrants to operate.

Quoted by CNBC, he said:

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms to engage in the eco-system. These include the provision of custodial and asset management services as well as traditional brokerage functions like market-making.”

In January, CCN reported that BitGo acquired the $12 billion digital asset management firm Kingdom Trust, which at the time was at the time one of a small number of regulated custodians offering digital asset custody to institutional investors.


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Bitcoin $6479.260 – CryptoCurrency Trading Report – 16.09.2018 13:59

These changes have happened in the last hour.

In the last hour, Bitcoin is leading the cryptocurrency rank. A fall in the exchange rate was seen from 6479.260 dollars to 6479.260 dollars a -0% change.BitcoinNext in rank to Bitcoin is Tether, with a recorded rise on its exchange value of 0.41% compared to its previous price at 0.995 dollars now at 0.999 dollars.TetherThe third place is occupied by Ethereum, with a standing value of 216.508 dollars from its previous rate of 218.254 dollars a -0.8% decrease.EthereumEOS is the fourth place on the most popular currency in the crypto trade market, currently valued at 5.338 dollars from a -0.19% decrease in its previous 5.348 dollars rate in the last 60 minutes.EOSTop 5 on the list among the most popular crypto currency is Bitcoin Cash. It has -0.23% downfall in the last one hour making it 438.594 dollars from its previous 439.605dollar value.Bitcoin CashIn the sixth position on the most popular digital currency is Litecoin, it has a risen value of 0.1% compared to the last trade rate of 56.331 dollars now at 56.387 dollars.Litecoin

The biggest stock raisings of the last one hour are:

  1. RabbitCoin – 964.15%: rose from 0.000002 dollars to 0.000023 dollars.
  2. Vulcano [OLD] – 414.22%: increased from 0.00227 dollars to 0.0117 dollars.
  3. Olympic – 135.16%: is standing by 0.000771 dollars after the previous 0.00181 dollars rates.
  4. Mindexcoin – 114.46%: according to the 0.0556 dollars from earlier it is going up to 0.119 dollars.

The biggest share falls of the last one hour are:

  1. Abulaba – -77.83%: rose from 2.578 dollars to 0.571 dollars.
  2. Webcoin – -39.79%: increased from 0.0346 dollars to 0.02081 dollars.
  3. Vivid Coin – -34.12%: is standing by 0.0645 dollars after the previous 0.0425 dollars rates.
  4. Stellar Holdings – -29.19%: according to the 0.000183 dollars from earlier it is going up to 0.000130 dollars.

Join our party in the next hour too.

Date: 16. September 2018 01:59 PM (GMT)

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Hard Forks Are a Threat to Cryptocurrency Stability, Study Suggests

Cryptocurrencies like Bitcoin have the potential to transform the way international transactions are performed. Yet, due to their high volatility, most users do not see these currencies as reliable.

recent study in Springer's journal Environment Systems and Decisions, by Benjamin Trump, an ORISE Fellow at the United States Army Corps of Engineers, looked at why this is the case.

He examined a wide range of software updates - or “forks” - to understand how these can lead to the governance challenges that cryptocurrencies face. Using sources such as Map of Coins and crypto news outlets, Trump and his team examined 800 publicly recognized soft forks, source code forks or altcoins, and Bitcoin hard forks.

What they found was a significant amount of new blockchains emerging from the initial Bitcoin platform. While some of these lasted multiple years, as is the case of LitecoinDogecoin, and Vertcoin, many hardly survived a few months.

 Experts have predicted that forks are going to become more commonplace in 2018, with some saying that up to 50% are possible. This is problematic as such forks could be the principle obstacle to widespread adoption of cryptocurrencies, they argue. Trump noted:

Hard forks are a threat to maintaining a stable and predictable operating platform that is essential if cryptocurrencies are to be adopted for daily financial transactions.

In order for Bitcoin to become a more trusted currency for global transactions, it needs to be able to prove its reliability through good governance measures, the paper claims. This could require the various stakeholders, such as cryptocurrency miners and developers, to put mechanisms in place to prevent forks from happening.

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Dropping Bitcoin Volumes Brings Minor Market Retreat, Where Next?

The valuation of the crypto market has dropped from $205 billion to $199 billion, as Bitcoin dropped below the $6,500 mark once again.

In the past three hours, the crypto market has rebounded by $2 billion to $201.5 billion, demonstrating some resilience in the $200 billion region.

Crypto market valuation, chart from

ETH, the native cryptocurrency of the Ethereum blockchain network, showed strong momentum over the past three days, achieving a monthly high at $227. While other major cryptocurrencies fell by 1 to 4 percent, ETH managed to record a slight 0.5 percent gain.

Market’s Volatility

The crypto market may seem volatile to most investors but given the tendency of cryptocurrencies to increase or decline in value by more than 10 percent on a daily basis, the market has been relatively stable in recent weeks in comparison to the past several months.

In previous reports, CCN noted that the cryptocurrency market is going through a bottoming out process, recovering from its 80 percent correction since February of this year. Bitcoin has been showing stability in the $6,400 to $6,500 range and has rarely dipped below the $6,400 mark.

While ETH experienced a massive 50 percent drop in its price since September 5, it has recovered relatively quickly throughout this week and has started to stabilize in its low price range.

Undoubtedly, the cryptocurrency sector is still going through a bear market. But, the oversold conditions of the market portrayed by Williams Percent Range and other technical indicators suggest that cryptocurrencies have started the process of stabilizing in a low price range, which is beneficial for the mid-term growth of the market.

As expected, Tezos (XTZ), which experienced a 52 percent surge in price ahead of its mainnet release on Monday, experienced a minor retracement on its price, dropping by around 5 percent against the US dollar.

Nano, Qtum, OmiseGo, and Dragonchain, which recorded solid gains against Bitcoin earlier this week as Bitcoin neared $6,600, demonstrated losses in the range of 4 to 10 percent, struggling to show momentum in a lackluster period.

Generally, after a slight decline in price, a minor corrective rally occurs and major cryptocurrencies increase by small margins. But, the low volume of Bitcoin, which is currently at $3.3 billion, can be considered as a concern for traders.

Earlier this week, the volume of Bitcoin hovered at around $4 billion. In the past few days, the volume of BTC has dropped by 17.5 percent. In contrast, the volume of Ethereum has remained stable at the $1.7 billion mark.

Lack of Volume

If BTC fails to see a spike in volume in the upcoming 24 hours, BTC is unlikely to experience any major movement on the upside. ETH in contrast, which has seen decent gains in the past few days, is expected to continue its momentum on the upside, especially if it can maintain stability above the $220 resistance level, which it has not been able to achieve.

The next resistance level of Bitcoin is seen at $6,600 and $6,800, and BTC will need to comfortably break out of the two levels to achieve $7,000 in the short-term.

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Brazilian Avaí Football Club is kicking into cryptocurrency with new ICO

Brazilian Avaí Football Club has announced that it will be launching its own digital currency.

The club revealed the news in a press release stating that it will be launching an initial coin offering (ICO) to sell the token and to raise funds. In order to develop the cryptocurrency, the club has teamed up with SportyCo and Blackbridge Sports.

SportyCo is a sports-focused community and seems a good fit for the project. Similarly, Blackbridge Sports, as a football investment platform is well suited to the fundraising scheme. Avaí FC, together with the two partners, has a goal to raise a total of $20 million USD in the ICO.


We have a major announcement today! The first ICO by a football club! @AvaiFC @1Blackbridge #cryptocurrency #ico #sports #football …

1:13 PM - Sep 12, 2018

Major new project: Avaí FC, welcome to the SportyCo family! – SportyCo News

We have just announced a major partnership with Campeonato Brasileiro Série B football club Avaí Futebol Clube at a press event in Florianópolis in Brazil: the first Initial Coin Offering (ICO) in...

Twitter Ads info and privacy


The co-founder of SportyCo, Marko Filej, expressed his enthusiasm at the new partnership:

We look forward to working with Avaí FC and see how they intend to launch their new digital currency with the SportyCo platform that has always been leading innovation in the world of sports finance and sportsmanship. With this initial money offer, we are opening a new chapter in football and the sports industry in general.”

Coin Digest

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Francisco José Battistotti, the president of Avaí FC also chipped in on the matter. Battistotti highlighted that he thinks of the club with a global attitude. He sees the club making an international impact, but stressed the importance of paying attention to the Brazilan fanbase:

With our ICO, we are actively seeking to reach a global football fan base, and we are attentive to everything that surrounds Avaí’s environment in Florianopolis and Brazil. That is why we are working together towards our goals, that is, making the club a stable member of the Brazilian Serie A Championship and reaching the Copa Libertadores.”

Start trading cryptocurrency with Coindirect.

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Economic Calendar - Top 5 Things to Watch This Week - The U.S.-China trade spat will likely remain a key driver of sentiment in the week ahead after reports said U.S. President Donald Trump wants to move forward with tariffs on $200 billion in Chinese goods.

U.S.-Sino trade-war fears have been simmering for months. Neither side is showing any signs of backing down, fueling worries that world's two largest economies are spiraling towards a trade war that could shake the global economy.

Besides trade rhetoric, the U.S. will see a relatively quiet week in terms of economic releases, with a report on the housing sector expected to draw the most attention.

Meantime, in Europe, traders will be able to get their teeth into the latest snapshots of UK inflation and retail sales for further indications on the continued effect that the Brexit decision is having on the economy.

This week's calendar also features flash survey data on euro zone business activity for September, which should give some indication of how the region's economy is coping with global trade conflicts, Italian politics and messy Brexit negotiations.

Elsewhere, in Asia, a monetary policy announcement from the Bank of Japan will be on the agenda, though no change is expected.

Ahead of the coming week, has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.

1. U.S.-China Trade Developments

Market focus will largely be attuned to the next potential steps in the tit-for-tat trade dispute between the U.S. and China.

U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, a senior administration official told Reuters on Saturday, despite Treasury Secretary Steven Mnuchin's attempts to restart trade talks with China.

The tariff level will probably be about 10%, the Wall Street Journal reported, quoting people familiar with the matter. This is below the 25% the administration said it was considering for this possible round of tariffs.

The decision comes despite a Treasury invitation last week to senior Chinese officials, including Vice Premier Liu He, for more talks to try to resolve trade differences between the world's two largest economies.

Trump has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring U.S. technologies and intellectual property and roll back high-tech industrial subsidies.

Investors fear an escalating trade war between the world's two biggest economies could hit global growth and damage sentiment.

2. U.S. Housing Data

The Commerce Department is to publish a report on building permits and housing starts for August at 8:30AM ET on Wednesday.

The data is expected to show that permits dipped 0.1% slightly to 1.310 million last month, while housing starts are forecast to show a gain of 5.8% to 1.240 million.

Besides the housing data, this week's rather light economic calendar also features surveys on manufacturing conditions in the Philadelphia and New York regions.

Fed speakers are also quiet ahead of their Sept. 25-26 meeting, where they are expected to raise interest rates.

On Wall Street, there is a late-quarter lull in earnings news, with just a handful of reports due in the week ahead, including FedEx (NYSE:FDX) and Oracle (NYSE:ORCL) Monday, General Mills (NYSE:GIS) on Tuesday and Micron (NASDAQ:MU) Thursday.

3. UK Inflation Figures

The UK Office for National Statistics will release data on consumer price inflation for August at 0830GMT (4:30AM ET) on Wednesday.

Analysts expect annual CPI to inch down to 2.4%, a tad slower than the 2.5% increase seen in July, while core inflation is forecast to dip from 1.9% to 1.8%.

In addition to the inflation report, traders will focus on monthly retail sales data due on Thursday for further hints on the health of the economy.

The Bank of England (BoE) kept interest rates on hold last week and highlighted greater financial market concerns about Brexit.

Brexit talks are set to intensify over the coming week, with the first of three summits that European Union leaders hope will settle an agreement for departing Britain within the next two months.

EU officials will get an update on negotiations in Austria on Thursday and also decide whether to hold a special summit on Brexit in November, now that they no longer expect to clinch a deal at their regular gathering scheduled for Oct. 18-19.

The timing of the meetings tallies with EU Brexit negotiator Michel Barnier's suggestion that an exit deal could be struck in six to eight weeks if negotiators are realistic in their demands.

Most economists do not expect the BoE to raise rates again until after Britain has left the EU.

4. Flash Euro Zone PMIs

IHS Markit's composite flash Purchasing Managers' Index (PMI) for the euro zone is due at 0800GMT (4:00AM ET) on Friday, amid expectations for a slight decline to 54.4.

The index measures the combined output of both the manufacturing and service sectors and is seen as a good guide to overall economic health.

Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 0700GMT and 0730GMT respectively.

The European Central Bank also kept its policy unchanged as expected last week, staying on track to end bond purchases this year and raise interest rates next autumn.

5. Bank of Japan Policy Meeting

The Bank of Japan (BOJ) is widely expected to keep its short-term interest rate target at minus 0.1% and the 10-year government bond yield target at around zero percent at the conclusion of its two-day meeting on Wednesday.

The central bank is expected to debate whether escalating global trade tensions could undermine its confidence that the export-reliant economy will sustain a moderate expansion.

Japan and the U.S. will likely hold a second round of trade talks on Friday between Economy Minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer.

Tokyo wants to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement.

Stay up-to-date on all of this week's economic events by visiting:

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Binance to launch a “live money beta testing” of Singapore Fiat Exchange

The CEO of the world’s largest cryptocurrency exchange Binance, Changpeng Zhao is in the cryptocurrency industry conference “Cumberland Summit” (September 14th – 16th) in Singapore. The summit consists of major names of crypto space like Thomas Lee from Fundstrat, Tyler Winklevoss, representatives from Binance and many more.

On Saturday, 15th Sep, CZ announced on Twitter that Binance is going to launch a “live money beta testing” of Singapore FIAT exchange, starting from Sept 18th. He tweeted on the second day (out of three) of Cumberland summit, occurring in Singapore:

“I just slipped that we will begin #Binance Singapore fiat exchange live money closed beta testing on Sept 18th, in 3 days. Invitation only first. Exciting!” 

It can be assumed that before the year’s end, Binance would support Singapore Dollar (SGD) pairs including foreseen alternatives like SGD/ETH pair and SGD/BTC pair.

Currently, the SGD pairs will be solely accessible in closed beta, i.e. this feature is relied upon to be available on the basis of invitation only, beginning on September 18. Well CZ did not declare that when will the rest of the Binance community get access to these pairs.

Binance progress report month 14

Binance has established in 2017, and within one year it turned into the largest cryptocurrency exchange in the world. It increased its daily trading volume to nearly $822 Million, and as of January 2018, it was largest crypto-exchange with a BNB market capitalization of $1.3 billion.

The organization was established in China, however, moved its servers and central station out of China and into Japan ahead of time of the Chinese government prohibition on cryptocurrency trading in September 2017, and recently it relocated to Malta.

Recently, Binance released its monthly audit report for the Month 14 (August 15 to September 14). In the report, the organization declared the noteworthy changes and upgrades that occurred throughout the month.

Recently, it listed GoChain (GO), the token that was the victor of the Round 9 of the Binance Community Coin of the Month and was listed on September 12 on the platform.

It presented bolster for the Polish dialect on its site and included a Polish Telegram station as well.

The organization had updated the Android and iOS applications to let users convert the dust to BNB straightforwardly from the Binance Android and iOS apps.

Binance Opened Deposits and Withdrawals choices for Bitcoin Diamond (BCD).

Binance Labs has propelled the Binance Labs Batching Program to help groups in the early stages of development put their best ideas to work.

Binance launched an academy to educate people about cryptocurrency and blockchain.

Binance, announced its launch of fiat-to-crypto exchange, Binance LCX in Liechtenstein.

IPO specialist Wei Zhou joined Binance as CFO. Beforehand Wei was serving as CFO of and Charm Communications and drove these organizations through their IPO listings on the NYSE and NASDAQ.

Binance has marked an MOU with Malta Stock Exchange to launch a security tokens exchange platform.

Binance had Worldwide Meetups in Hanoi(Aug. 16), Ho Chi Minh City (Sep. 8), Lodz, (Sep. 9), and again in Ho Chi Minh City (Sep. 14), Jeju (Sep. 15).

Their upcoming Global Meetups scheduled as Istanbul (Sep. 19), Guatemala City (Sep. 22) and many more.


The news of launching a “live money beta testing” of Singapore FIAT exchange is exceptionally energizing for traders in Singapore who have been sitting tight for Binance to support the Singapore Dollar (SGD).

Since most cryptocurrency exchanges rely upon ETH or BTC as a base resource for liquidity, the posting of crypto tokens combined with FIAT will without a doubt be another remarkable step towards crypto adoption.

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Ripple partners with SBI to launch a Remittance Application “MoneyTap”

Ripple is again in the news! It seems that Ripple is a hot favorite among everyone. Last time MUFG Bank praised Ripple and TransferGo introduced its payment system using Ripple Solution. This time, Ripple is currently heading into an association with SBI by providing affordable, instant and a transparent remittance system.

In March, SBI Group of Japan declared that it would launch a Remittance Application “MoneyTap” and uncovered that for the banking infrastructure, the task is upheld by the Japan Banking Consortium while Ripple will deal with the innovative foundation.

On Sep. 12, Mr. Takashi Okita of SBI Ripple Asia released an official site of MoneyTap on Twitter. He tweeted:

Since the venture is in its underlying stage, the exact launch date has not yet been uncovered. However, the site shows that the application will be made accessible in autumn.

Ripple blog

Japan has been in Ripple’s line of sight for some time now and in their most recent blog titled, “The Power of Instant Remittances: RippleNet in Japan,” Ripple is sharing what precisely it is doing in the nation.

As per its blog post,

A number of pioneering banks and providers are using RippleNet’s global payments network to give workers an instant, affordable and transparent way to send needed cash to their families.” 

As indicated by Ripple, SBI is at present the biggest money transfer provider in Japan with 10 billion JPY in aggregate regularly monthly payment volume. SBI is expanding its work on the success of its administration and the prevalence of instant remittances by extending its work with Ripple through the jointly launched Japanese Bank Consortium. Recently, they divulged a mobile app, MoneyTap that is powered by RippleNet.

Features of the Application

SBI Holdings and “SBI Ripple Asia” will launch a payment application “MoneyTap” for smartphones iOS and Android outfitted with Ripple’s xCurrent technology of virtual currency ripple (XRP). It will be offered to 61 Japanese banks including megabanks.

The application will enable users to conduct domestic transactions 24 hours a day and seven days a week. It has a remittance function by which user can easily remit locally and abroad using a bank account number, mobile phone number, QR code, and by combining with biometric authentication by fingerprint.

The application will be commercialized earlier in the three companies, Shumishin SBI Net Bank, Suruga Bank, Resona Bank. After an official launch, it is anticipated that it would extend the support of another 58 members of the banking consortium.

Money Tap is associated with the cutting edge financial platform “RC Cloud 2.0” which handles domestic and foreign exchange centrally by using the Distributed Ledger Technology (DLT), created with the participation of Nomura Research Institute.

What is Distributed Ledger Technology (DLT)?

A distributed ledger is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. There is no central administrator or centralized data storage.


SBI Ripple Asia has accomplished great success with this new technology. However, its payment application isn’t the primary customer-driven application powered by Ripple’s DLT. Santander, a Spanish banking giant, was the first which launched this kind of payment system.

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Categories of cryptocurrency news to ignore

Despite the recent downturn in the cryptocurrency market, there is still a multitude of news articles on cryptocurrencies. These articles range from exposés by financial media companies to blogs of armchair speculators.

Because the quality of articles differs considerably, we should be discerning with what we read regardless of the source.

High-quality articles can valuable in keeping us updated about the technological advancement of blockchain projects, future business use cases and financial regulations from governing bodies.

Low-quality articles on cryptocurrencies are like junk food. Reading them is comparable to eating empty calories. At best, we waste time and get an entertaining hit of dopamine. At worse, the misinformation takes a toll on our financial health.

Some recurring themes in cryptocurrency articles to avoid reading are:

Theme 1: Price predictions

We see a lot of price predictions for cryptocurrencies. Common predictions appear in the form of:

Bitcoin will reach 50 000 USD by the end of 2018

The reason there are so many predictions is that it is an easy way to gain eyeballs on the articles. It feeds off the dream of getting rich fast and easy.

For those speculating in cryptocurrencies, reading predictions allow them to validate their actions. They will seek out articles that reinforce what they want to believe.

Illustration by Bruce Flow

The thing with the internet is that basically anyone can call themselves an expert and publish a prediction. There are no gatekeepers to check the credibility of authors.

Some of these predictions are backed by “technical analysis” charts. Lines and triangles are supposed to make the numbers more believable.

Just like the stock market, it is incredibly hard to make accurate predictions.

Companies like Bridgewater Associates spend hundreds of millions every year on predictive algorithms and hire highly intelligent people to increase their chances of being right in investment predictions.

What makes us think some guy in his mom’s basement with a YouTube channel can make accurate predictions? He might get lucky. You know what they say: a broken clock is right twice a day.

If a person could accurately predict price changes, there is no reason to release the information. More realistic reasons to publish predictions are:

  • to gain web traffic
  • pump and dump schemes

Be skeptical when you come across market predictions. Do not seek them out just to validate what you desperately want to believe.

Theme 2: Crypto celebrity quotes

Another common theme in cryptocurrency articles are quotes from crypto celebrities. Readers are frequently drawn to those articles because of the famous name in the title.

Such articles usually chronicle a famous person who has made hundreds of millions from cryptocurrency. Common headliners include the likes of Michael Novogratz or the Winklevoss twins.

Many are influenced by such articles to make cryptocurrency speculation decisions. When a crypto celebrity says something like “Cryptocurrency will be a 20 Trillion Dollar market”, the quote is reposted with euphoria in Reddit threads.

Crypto celebrities like Michael Novogratz play in an entirely different league. They have access to early information from having connections to tech companies and investment firms. They have the resources to hire highly intelligent analysts to make very informed decisions.

It is futile to make investment decisions based on a single crypto celebrity quote without knowing the bigger picture behind what the celebrity is doing.

The power that crypto celebrities wield is undeniable. As of today, John McAfee has more than 800 000 Twitter followers. He has revealed that he charges $105 000 per promotional cryptocurrency tweet. Let that sink in.

It is might be interesting to hear what crypto celebrities have to say, we just have to be careful about what we do with the information.

Theme 3: Price change justifications

Cryptocurrency prices are very volatile compared to other markets such as stocks, real estate or metal commodities. Price movements of 20% a day are fairly common.

Many websites try to profit from volatility by offering opinions on why the price has risen or fallen. Common price justifications include policy changes by the government, technological updates or market rumors in Asia.

Just like the stock market, the cryptocurrency market is driven by human emotion and is not always based on intrinsic value.

Illustration by Bruce Flow

There is no real way to know if a major price change is caused by a singular event.

In reality, price changes could be triggered by:

  • a singular event
  • multiple events in a chain or in parallel
  • wrong assumptions out of ignorance
  • price manipulations
  • who knows what else?

Prices rise because people buy out of greed. When the price rises more, people get greedier. Prices drop because people sell out of fear. When the price drops more, people get more fearful.

We should not to so naive as to believe every price justification we read.

Theme 4: False technical facts

A large number of articles written about cryptocurrency come from authors with little or no technical background. Their false assumptions are written as facts in the articles.

One obvious example is describing different blockchain projects as “rivals”. Articles compare prices between different cryptocurrencies such as ETH and XRP as if they are technically equivalent to each other.

The reality is that different blockchain projects are created for different purposes.

The Ethereum project is built as a decentralized blockchain platform to run smart contracts. Smart contracts are distributed applications that are executed with the goal of not having any downtime or being able to be manipulated. Ether(ETH) is the currency to fuel the applications. The more complex an application is, the more ETF is used up.

Ripple Labs Inc. is a company that works on blockchain solutions to transfer funds in real time. One of their solutions is xRapid, which uses XRP to transfer value. In layman terms, the goal is to transfer money faster and cheaper by transferring XRP.

ETH and XRP couldn’t be more different than each other. Yet, they are referred to as “rivals”.

The list of false facts due to the wrong assumptions in crypto articles are endless.

One way to mitigate the risk of consuming false technical facts is to go straight to the official websites of the blockchain projects.

We should consume hard facts to form our own opinions, rather than based on the views and false assumptions of others.


The information we gain by reading will influence the way we feel and how we act. For this reason, we should be aware of the quality of the articles we read, especially on hot topics such as cryptocurrency and blockchain.

“I cannot remember the books I’ve read any more than the meals I have eaten, even so, they have made me.”
? Ralph Waldo Emerson
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Nerdy’ Australian PM Pushes Blockchain ‘Agenda’ to Take On Big Banks.

Australia’s newly-elected Prime Minister Scott Morrison is pushing his agenda of backing blockchain technology to disrupt and bring “much tougher competition” to the big banks and other sectors in the country.

Speaking to reporters within weeks of being sworn in as Australia’s newest prime minister, Scott Morrison was asked [full clip below] about his position on cryptocurrencies in the financial system.

The question: “Would you accept the innovation of cryptocurrencies to ease some of the inefficiencies in the banking sector?”

In response, the former treasurer claimed to have done his research into cryptocurrencies but stopped short of deeming it the cure for the industry.

“No, I don’t think that’s the answer,” he stated. “I looked a lot at cryptocurrencies when I was treasurer.”

“Let me be nerdy for a sec,” he told the assembled reports, switching gears as he threw his support behind blockchain tech, the core innovation powering cryptocurrencies, instead.

“What has been done with distributed ledger technologies and blockchain, working in the financial sector, that’s going to open up massive opportunities,” Morrison said. “Consumer data right, the open banking reforms and the legislation coming forward….that’s going to transform the Australian banking system,” he added.

Notably, he opined:

“But the thing I like about it most – it’s going to deliver much tougher competition to the big banks. ‘Business as usual’ for the big banks won’t be continuing…Smaller banks and new technologies can be used to give greater power to customers.”

A FinTech Proponent

While not directly endorsing cryptocurrencies, Morrison has previously pushed favorable laws for domestic cryptocurrency adopters. In early 2016, the then treasurer confirmed the government was working toward removing the double taxation of transactions involving cryptocurrencies like bitcoin.

For several years, Australians were taxed twice for crypto transactions – first the goods and services (GST) tax on the product purchased and another GST levied on the cryptocurrency used in the payment.

“If you pay $4 in bitcoin for a coffee, you will pay 40c GST for the coffee, and 40c again for the bitcoin you used to pay for the coffee,” explained Daniel Alexiuc, CEO of Australian bitcoin startup Living Room of Satoshi, speaking to CCN in 2016.

A year ago, nearly to the day, the government introduced the bill to remove the double tax.

“The Bill will ensure that Australians are no longer charged GST on purchases of digital currency, allowing it to be treated the same way as physical money for GST purposes,” Morrison said at the time. “The law change will retrospectively apply from 1 July 2017, in line with the 2017 Budget announcement.”

The following month, the government published draft laws for introducing a regulatory sandbox, labeled a “game changer” by Morrison.

Before walking away from the interview as now-prime minister, Morrison is bullishly backing blockchain technology to disrupt industries beyond finance.

He stated:

Whether it’s in electricity prices or in banking, that’s my agenda. I believe in it. My team believes in it. Australians can trust me on it.


Featured image from Flickr/Australian Embassy Jakarta.

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Surrender or Else: Thai Authorities Slap Mastermind of $24 Million Bitcoin Fraud with Deadline.

The prime suspect in Thailand’s multi-million dollar bitcoin fraud case now only has a few days to make plans for his surrender or else efforts to extradite him will kick off.

Thailand’s Crime Suppression Division has given Prinya Jaravijit, who is believed to be the mastermind behind the fraudulent scheme in which a Finnish investor named Aarni Otava Saarimaa lost 5,564 bitcoins worth nearly 800 million baht (approximately US$24 million) at the time, until September 17 to surrender.

Initially reported by the Bangkok Post, Prinya had previously been summoned by investigators for a meeting on September 14 but he failed to show up. His lawyer instead requested a postponement arguing he needed more time to compile evidence for his defense.

Extradition Proceedings

According to the deputy commander of the Crime Suppression Division, Chakrit Sawasdee, failure to surrender on Monday will see extradition proceedings started against Prinya Jaravijit. Per Sawasdee, this was not the first time summons had been postponed.

“The suspect was then asked to come in on Monday and if he still ignores it, relevant agencies will be contacted to try to bring him back to face prosecution,” said Sawasdee.

Prinya, who is thought to be holed up in the United States, is currently the only suspect on the run. Other suspects in the bitcoin fraud case including Prinya’s siblings and parents have already appeared before the police. Prinya’s younger brother, Thai actor Jiratpisit ‘Boom’ Jarajivit, has already been charged in court, released on a US$60,000 bail and banned from traveling outside the country as CCN reported.

Jiratpisit’s bank account allegedly received US$649,000 from Prinya but he continues to plead innocence saying his elder brother used his bank account without his consent. Prinya also wired US$4.2 million to his younger sister, Suphitcha, but she has also pled innocence and indicated a willingness to transfer the amount back to her brother.

Keeping it all in the Family

Additionally, the police are also considering summoning Prinya’s father Suwit Jarajivit and his mother Lertchatkamol since there is evidence showing that they received approximately US$1.8 million from their son.

Other suspects who had been mentioned in the fraud case include famous stocks trader Prasit Srisuwan and businessman Chakris Ahmad. In an agreement he had reached with Prinya, the Finn was to invest his money in companies listed on the Stock Exchange of Thailand as well as in Expay Software where Ahmad is a major shareholder. However, once Saarimaa transferred the bitcoins to Prinya’s wallet, the money was diverted to the bank accounts belonging mostly to the family members of the alleged mastermind.

Earlier in the month, Saarimaa reached an agreement with Srisuwan and Ahmad where he withdrew the complaint against them, setting them free from the charges that had been drawn against them.

Featured image from Shutterstock.

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