CoinAlpha Gets SEC on Their Ass

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CoinAlpha got served with a cease and desist order today from the SEC on the grounds of operating as an unregistered entity. The SEC also accuses the company of being sneaky in the way of business operations after raising over $600,000 last year and quickly unwinding the fund once the SEC came calling. Another reason is that when the company filed for an exemption for offering securities, they were deemed ineligible but still sourced investors. The Silicon Valley-based blockchain company had earlier raised close to $3.5 million to create a fully-fledged digital asset management program.

The reason behind founding the company in the first place was the success Ethereum had. Their use of smart contracts changed their whole perspective on transaction obligations and reinforced contractual parties without the influence of a third party. The company has been running two asset funds; Coin Alpha Falcon which deals with machine learning strategy and Coin Alpha Index, which was a market cap index. Now, following the company contravening section 5(a) of the Securities Act, and subsequently unwinding the fund, the SEC slapped the sanction on them today.

Technically, the actual offence is the soliciting of investors without proper relationships between the investors and the company. Interestingly, the website was also accessible to the investors without any passwords. The company, in turn, earned management and incentive fees from the fund, but when called upon by the SEC, halted the fund immediately. The SEC mandated that the company is to pay  $50,000 immediately to cater for the charges. Matter of fact, the website is at the moment inactive.

The SEC is looking for effective ways to manage cryptocurrencies and as such has made it clear that some specific conditions must be met, such as disclosure and securities registration. The power of the SEC is not to be taken lightly. Just have a look at the pending proposal to execute and approve Bitcoin Exchange Traded Fund, a proposal that was initially made by three different ETF providers, but is still on hold.

 

 

The U.S. state of Ohio is poised to become the first of the 50 states to accept Bitcoin (BTC) as tax payment; according to WSJ

WSJ further quotes that the move initially applies only to businesses, with plans to extend the offering to individual taxpayers in the near future. Starting in December, Ohio-based businesses can register to pay all of their taxes in the leading cryptocurrency. The payments shall be processed via crypto payments service BitPay.

The crypto-focused move was advanced  by state Treasurer Josh Mandel, who was quoted as saying:

“I actually see bitcoin as a legitimate form of currency.”

Mandel was also confident that the cryptocurrency initiative will continue” after his term ends this January. It is worth noting that as an elected state official, Mandel is able to decide if  his office will accept the digital currency “without approval from the legislature or governor,”

Other states that are Pro-Bitcoin include; Arizona and Georgia.

LXDX, the high-speed cryptocurrency exchange founded by a former SpaceX engineer, has announced that it will issue stock through a security token offering (STO).

Institutional Crypto Exchange to Issue Stock on the Blockchain

LXDX, which was co-founded by former SpaceX engineer Joshua Greenwald, will become one of the first companies to issue stock through a security token offering, allowing investors to purchase cryptocurrency tokens that represent ownership in the exchange.

Security token offerings are essentially the suit-and-tie version of the initial coin offering (ICO), through which blockchain startups have collectively raised billions of dollars in startup capital while also entering sometimes-murky regulatory waters.

Most ICOs have purportedly issued “utility tokens,” which are functionally akin to service coupons or prepaid gift cards. Nevertheless, many regulatory agencies including the US Securities and Exchange Commission (SEC) have said that many so-called utility token ICOs are actually investment contracts since contributors generally purchase them on speculation that their value will increase in the future, rendering them liable to securities issuance and trading guidelines.

Given that many ICO tokens could be classified as securities anyway, a growing number of companies have decided to comply with securities regulations fully — and embrace the wide range of possibilities that registering as a security provides.

In LXDX’s case, its tokens will represent direct ownership in the exchange, complete with dividend rights. LXDX will issue 5 million tokens that collectively represent a 10 percent ownership share in the exchange and will entitle token holders to 10 percent of the exchange’s quarterly adjusted gross revenue.

Tokens will each be priced at 1 euro, so this financing round will be conducted at a valuation close to $57 million. LXDX co-founder and COO Will Roman said that this was the only STO funding round the firm would conduct in the “foreseeable future.”

‘Million Token Future’

ethereum token LXDX
The LXDX token will be an ERC-20 standard or equivalent, but it will have some trading restrictions.

Roman stated that, bolstered by the advent of cryptocurrency technology, the world is on the cusp of a “million token future.”

“You will wake up one day, on a day not so different and not so far from this one, and there will be tens of millions tokens for trade. You’ll login to your IB, your TD Ameritrade account and instead of 4,000 or so equities to select from, you’ll be in a gateway to direct investment in a truly inconceivable number of opportunities,” he said. “Of course, there will be small businesses, there’s already 5 million of those in the US alone. But, there will also be tech startups, bonds, art collections, real estate projects, usage rights, royalties, and, yes, still funds that aggregate and index all of this coming chaos.”

“As blockchain technology proliferates, we expect to see increased tokenization of tangible assets like real estate, commodities, and even art. The million token future is just around the corner,” added CEO Joshua Greenwald in a press release. “We are excited to provide our community a chance to experience the benefits of a true security token.”

The LXDX STO is being made available to the general public under Malta’s crypto-friendly regulatory framework, though investors will have to comply with their local regulations. This means that US investors, for example, must secure accreditation to purchase LXDX security tokens.

Due to regulatory restrictions governing securities trading, the token will not be freely-tradable. The firm hopes to initially facilitate trading between investors who contributed to the STO, deploy a smart contract to manage trading “in a Bancor-like manner,” and ultimately list the token on secondary markets in six months.

LXDX: ‘We Don’t Crash’

The exchange, which will begin signing up customers in mid-November ahead of a December launch, aims to compete for the attention of the increasing number of institutional investors who are diversifying into the still-nascent cryptocurrency space.

The platform will offer a wide range of cryptocurrency derivatives, including some that Roman said “are not available anywhere else.” Significantly, the exchange won’t feature automatic liquidations or “socialized losses,” whereby a platform forcibly recoups profits from winning traders to cover losses that are too large for it to cover. This occurred at major exchange OKEx in August when a trader lost an “enormous” gamble in the exchange’s bitcoin futures market.

“We don’t like auto-deleveraging and we don’t like socialized losses,” Roman said. “We’re going about that differently than others in the crypto space; we don’t do auto liquidations.”

He further claimed that LXDX would operate with “radical transparency” to avoid accusations of market manipulation, wash trading, and other ethically-dubious practices that some analysts believe are pervasive within the cryptocurrency exchange market.

“With respect to ethos, we operate under radical transparency and operate according to all applicable regulations. We don’t secretly trade on our platform or sell your order flows to high frequency shops. We take a ‘seriously, don’t even try it’ attitude with respect to wash trading, pumps, and other market abuses.”

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Platform development has been led by CTO Steven Thomas, a former US Navy cryptologic technician who most recently ran the performance and experimental technology teams at Tower Research Capital.

“Between our software, hardware custody solutions, and real-time trade surveillance, we are setting the standard for security and trust in the industry,” Thomas said in the announcement. “We’ve structured the LXDX system to enable ultra-secure information compartmentalization.”

Roman told CCN that the platform would offer a basic feature that has nevertheless proven to be elusivefor cryptocurrency traders: “we don’t crash” during periods of peak volatility, he said, adding that the exchange can handle “massive amounts of orders and assets” with “very low latencies.”

“On the tech side, we do everything on our, custom-tuned hardware in our own data centers. Coded from scratch in C++, best possible NIC cards and servers you can buy,” he said. “We push orders through our entire network in single digit microseconds.”

Regarding security, he said that “where possible,” every LXDX wallet is secured by multi-signature technology, geographic distribution of private keys, layers of redundancy to prevent unauthorized withdrawals. LXDX’s core systems are housed in a company-run data center, not the cloud, and he said that the firm would “run our own clusters to protect against double spends and eclipse attacks.”

Exchanges Compete for Institutional Attention

In August, LXDX announced that it had received funding from a group of investors including Dymon Asia Venture Capital Fund and Arianna Simpson of Autonomous Partners. Nevertheless, Roman said that the competitive nature of the space necessitated a second round of financing to ensure that LXDX is well-positioned to become a market leader.

That competition is indeed stiff, and increasingly so. ErisX, launched in 2010 as a traditional futures market, recently rebranded as a cryptocurrency exchange with backing from TD Ameritrade and Virtu Financial. Bakkt, the crypto subsidiary of Intercontinental Exchange (ICE), is just weeks away from launching its first bitcoin trading product. Goldman Sachs is preparing to roll out its first crypto derivative, and Fidelity has spun-off a cryptoasset subsidiary — though at present it is focused on custody, not trading.

“The space in which we operate is competitive, and given all the moving pieces, both technically and regulatory, expensive. We are not looking to be another exchange to trade crypto assets; we’re here to win,” Roman said in an emailed statement. “We will be the crypto exchange on which to trade and to do so requires the appropriate capitalization.”

Season 6 of the ever popular Fortnite videogame series has inspired the development of a Bitcoin stealing malware that is disguised as a Fortnite cheating tool.

Recently discovered by Malwarebytes Labs, the malware which is disguised as a cheat tool has the ability to steal data in Bitcoin from Fortnite gamers. Malware labs first stumbled upon this pesky bug on YouTube videos offering “free season passes” and other various offers for Android versions of the game.

Many Steps to This Scam

Detecting the malware included going through numerous steps of subscribing to YouTube channels, getting various prompts from newly built websites, filling out an online survey and then downloading the malware as a “reward” for the tasks completed.

Videos titled “Fortnite Cheat”, “Fortnite Hack Free Download”, and “New Season 6 Fortnite Hack Cheat Free Download “ were found to lead to this malicious bug. One such video had accumulated over 120,000 views before you to removed it for violating their spam policy.

Data Vulnerability

Once the initial executable file has been run, it reports details of the infected computer. Once that has been completed, it sends data by means of a POST command located within the Russian Federation. A lot of data can be stolen as the malware examines Bitcoin wallets, steam sessions, browser history, cookies, and other private information stored on the victim’s computer. There’s even a readme file that comes with the malware which allow the victim to purchase additional “Fortnite scams” for $80 worth of Bitcoin.

Christopher Boyd, the leader malware intelligence analyst at Malwarebytes labs stated that …”

“Offering up a malicious file with the pretense of cheating a video game is about as old-school as it gets. Would be cheaters suffer a taste of their own medicine through a chain of clickthroughs and which eventually results in malware as a parting gift. Winning is great however it’s not worth risking a massive chunk of your personal data income in order to get the job done.”

If you’re like me and hate giving up your credit card information to some of these potentially shady online casinos or live in the United States where dealing with online casino transactions can oftentimes be a difficult and painful process. That’s where Bitcoin casinos come into play.

Not only can you gamble with complete anonymity, but you can rest assured that your private information is not released to more nefarious sources, where your information (email, address, phone number) is released but your bank account and credit card information can be sold. Cryptocurrency is perfect for this sort of thing.

Now the only problem is, with so many Bitcoin gambling sites out there today, it’s easy to get lost in all the hype of some of the more “unscrupulous” portals. This is why I’ve composed an updated list of the very best and most noteworthy Bitcoin casinos on the net.

Whether you’re a total novice or experienced gambler, playing on the sites I listed for you below are not only beginner friendly but highly addictive.

To all my US residents…

bitcoin casino gambling sites review cryptocurrency gamingYou’ll realize how relatively aggravating it can be to send over bank wire transfers, while submitting several forms of ID (sometimes including billing statements), taking selfie’s like you’re a self proclaimed convict, to only have your online verification turned down.

Due to the overwhelming demand for bitcoin gambling sites, you can use your money and start enjoying a round of blackjack within a matter of minutes. For those of you more experienced gamblers who have gone through the same arduous process, you’ll really appreciate speed at which you can get started playing your favorite online casino games.

There’s Comfort in Blockchain

With the inclusion of blockchain technology and digital ledgers, online casinos can’t rob us blind like some of the more nefarious ones in the past as everything is recorded on blockchain. This enables players like yourself to check and see if the games are provably fair.

This is truly an amazing time for players who would like to get started playing their favorite casino games, quickly and easily, without all the troubles you have to go through from fiat based casinos.

Sifting Through the Clutter

If you’ve done any research as of late, you’ll realize there are quite a few “suspicious” Bitcoin gambling sites out there. However, there are only a few that are worth mentioning. Many of these casinos are plagued with programming errors, unfair game tactics, lack of customer support, and just look downright cheap.

I’ve created this review in order to clear out all the clutter and differentiate the portals that will stay honest and fair, so you don’t have to filter through all the nonsense I had to before finding a few that were worth their weight in gold.

Here is some of the criteria that I  used to review each site…

  • Provably fair (very important)
  • Available to US residents
  • Payment terms including minimum payouts, accepted payment methods, fees, withdrawals, and deposits.
  • Top-notch customer support. This includes fast ticket response times, open social media channels, as well as online chat support.
  • Ease-of-use. Games load quickly without any glitches or errors.
  • Quality content, selection, and graphics.
  • Anonymous registrations allowing the ability to play without registering your name, address, etc.
  • Deposit and Withdrawal Bonuses/Giveaways

Now that I’ve covered the basic requirements I use to review, let’s take a look at the top 5 Bitcoin gambling sites according to my personal analysis and user reviews.

#1 FORTUNEJACK

FortuneJack was established in 2014 and is the most trusted Bitcoin casino out there. Not only are they provably fair , but they are also regulated by the Curacao government.

The online crypto casino is developed and maintained by Eastern Europe’s top software professionals. They offer the very best when it comes to a high-end, secure online gaming experience.

The developers at FortuneJack created this casino for both newcomers and veterans alike by designing a unique and carefree environment that would ensure consistent entertainment no matter what your gambling preferences might be.

It’s currently one of the most visited Bitcoin casinos to date.

The casino welcomes US gamers with over 720+ various games to play. One things for sure, you’ll never lack from the selection of games or suffer from boredom. If there’s anything bad that I can say about this casino is that they may have too many choices, which can be a bit overwhelming to novice players (34 blackjack variations, 19 live games, 900 slots, etc, etc).

With FortuneJack you can bring the online gaming experience to your smartphone as this casino is compatible with any iPhone, Android, and Windows based smartphone.

Deposits/Withdrawals

Deposits can be made through various cryptocurrency’s like Bitcoin, Ethereum, Bitcoin Cash, Monero, Zcash, Litecoin, Dash, and Dogecoin. Their list of acceptable cryptocurrencies is beyond what any other online Bitcoin casino offers at this time.

Your crypto deposits show up within minutes after a single confirmation. Payouts are processed in a few hours, but I’ve seen these show up as quickly as 30 minutes.

Your initial deposit gets a 100% match bonus up to 0.5 BTC and monthly reloads of 1 BTC.

Customer Support

The company includes a comprehensive online ticketing platform along with online chat. The also stay very active on their social media channels in case you like to get in touch with them there. You’ll even be provided with your own customer support rep as soon as you register.

Conclusion

One of the most updated, comprehensive, aesthetically pleasing Bitcoin gaining sites out there, FortuneJack offers a plethora of gaming options regardless of what your particular poison is.

The site navigation is extremely easy to use, with games that are categorized very well making it as straightforward as they come.

The casino has one of the most comprehensive game selections out of any online casino on the net today, let alone Bitcoin casinos. With your choice of live games, video games, betting games, casino games, lottery games, and many other subcategories of gaming experiences, you’ll undoubtedly never suffer from a variety of choices.

This was one of my personal favorite Bitcoin gambling sites as they simply offered everything that I could possibly look for within an online casino and make it very easy for you to get started. Their support was also top-notch and eager to please, making you feel right at home from the very get-go.

#2 BETCHAIN

betchain bitcoin cryptocurrency gambling site casino players and gamblers gaming
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Another more established Bitcoin gambling site,  BetChain was established in 2014, and was one of the pioneers to the online Bitcoin casino industry, when this phenomenon was relatively new. They recently decided to open their doors to other fiat currencies however the site is still widely regarded as one of the “early adopters” of the Bitcoin casino industry.

The company is also fully licensed by the laws and regulations of the Curacao government. Their security and anti-hack protocol is some of the best in the industry.

Welcome Bonuses

BetChain offers their newer players a nice welcome bonus. They now offer 100% welcome bonus up to 1 Bitcoin + 200 free spins. A minimum deposit of 0.05 BTC is required in order to qualify for this offer.

Deposits/Withdrawals

BetChain gives its players the chance to play using Bitcoin, Ethereum, Litecoin, and Dogecoin currencies. For those outside of the US, you can use both euros and the Russian ruble.

There is no minimum or maximum limits to deposit or withdrawal your funds. They even allow the ability to withdraw to other fiat currencies like the Euro and Russian ruble.

Withdrawals are typically subject to a 24 hour waiting period before processed. This is due to the fact that the casino employees employ a secure socket layer encryption system to ensure that all funds are protected from online threats.

Customer Support

The customer support over at BetChain has been fairly good. I never had to wait more than 24 hours for a response, however there has been a few negative reviews regarding lackluster support as well as wait times for verification.

Regardless if this is true or not, the casino has responded to these negative reviews with an explanation or an apology. This says a lot for their online reputation.

Conclusion

This well established and highly reliable Bitcoin gaming site should be placed high on your list if you love Bitcoin gambling sites as much as I do. They have an extremely large selection of slot machines (probably one of the largest selections out there) and are worthy enough to be considered one of the top online casinos offering both crypto and fiat funding options.

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#3 BITSTARZ

Welcome package bitstarz

One of the most popular Bitcoin casinos as of this release, BitStarz, offers 1200+ high quality games. Much like the other 2 Bitcoin gambling sites mentioned above, they were established in 2014, have provably fair games, and are regulated by the Curacao government.

This online casino is powered by the SoftSwiss gaming technology which provides an enhanced gambling experience. These games range from traditional casino games to highly addictive video games. The casino also offers live dealers, where you play in real time and compete against other live players. BitStarz  is also one of the most appealing Bitcoin casinos out there in terms of design.

Deposits/Withdrawals

There are many different ways to fund your BitStarz account. This online casino is to offer multiple currencies including Euro, USD, AUD, and British pound. Take note that there are processing fees involved with depositing funds into your account. Most of the payment outlets charge a 2.5% processing fee which allows your deposit to be processed immediately.

However, you’ll be happy to know that Bitcoin, bank transfers, and SoFort wire transfers do not deduct any transaction fee from your balance. This is yet another reason to utilize Bitcoin for your online crypto gaming needs.

Once you’re ready to withdraw your funds, you can choose whichever payment processor you’d like to have your funds sent to. This is what makes BitStarz  stand out among other online crypto casinos as it has the ability to process your transactions through various payment methods (much like BetChain).

Also worth noting, unlike the deposit fees, BitStarz doesn’t charge you anything for the withdrawals. You simply need to have at least 5 mBTC in order for a BitStarz to process your payout.

Welcome Bonuses

This Bitcoin casino offers their players a 100% match bonus of up to €100 or 1 BTC. That means if you deposit €100, you’ll receive €200 to gamble with. However that’s not all! BitStarz will award your second deposit with a 50% bonus which will be instantly credited to your account.

We’re not done there folks…

They also have a 3rd and 4th deposit bonus as well. As you can see it pays to be a low loyal customer of BitStarz as the more you play, the more bonuses you’ll receive. You can read more about their promotions and bonus specials located here.

Customer Support

BitStarz offers several support channels including live chat support, social media and email support. The company also has a sub Reddit where they quickly respond to user complaints which shows that they care about their customers and are willing to publicly help when called upon.

Conclusion

Overall the online gambling experience over BitStarz is beyond most other online Bitcoin casinos with regard to gaming features and the vast array of payment methods they offer. This company has been around for a very long time so you can rest assured that your gaming experience is not only secure but provably fair.

Deposits and withdrawals were always credited fast along with bonus opportunities that were beyond any that I’ve seen from some of the other Bitcoin gambling sites.

I highly recommend this casino to both novice and advanced gamers as they have a ton to offer both. The graphics and gameplay are beyond any that I’ve seen so far. You can check out some of their Bitcoin games located here.

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#4 CLOUDBET SPORTSBOOK

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CloudBet isn’t necessarily known for their online casino, however seeing that the 3 casinos mentioned above do not contain a sportsbook, I thought I’d include this in the mix as it’s one of the most noteworthy Bitcoin sports betting sites around.

You can clearly see that the company put a lot of time and money into the product as they not only contain sportsbook betting, but also a full Bitcoin casino and wide selection of live games.

CloudBet was established in 2015 and is one of the most impressive Bitcoin sportsbook gambling sites around. Both online players and industry experts alike agree… CloudBet is one of the best regulated fiat as well as crypto based sports betting sites around. You just can’t compete with the packages that CloudBet offers (covered below).

The company offers one of the most advanced Bitcoin sports betting sites on the planet. Everything about it is authentic, which many other sports betting sites seem to lack. The graphics, gameplay, and interface are just as polished as some of the world’s most elite online sports betting casinos, like William Hill and Pinnacle.

Sports betting includes all major leagues like EPL, Champions League, NFL, NHL, NBA, Cricket, Tennis, and even UFC.

Deposits/Withdrawals

CloudBet sportsbook is one of the very few to offer both Bitcoin and Bitcoin Cash deposits and withdrawals. All deposits are received directly into cold storage where your keys are kept safely off-line and away from potential hackers.

The company maintains a hot wallet which contains enough funds so that players can quickly withdrawal their amounts each day. Withdrawals are instant and typically processed within the same day.

Welcome & Deposit Bonuses

CloudBet offers some of the largest deposit bonuses available for any Bitcoin sports book on the internet today. First time deposits receive a 100% match bonus up to 5 BTC.

This is easily the largest match bonus limit across all online sports betting sites as it can easily award you with thousands of EUR, USD, GBP, or BTC. To top it off, players have a total of 365 days to clear the bonus once it has been applied to their account.

You’ll also be awarded bonuses by earning loyalty points, which CloudBet rewards for using both the sports betting and casino games. An award of 0.01 BTC will be released for every 800 loyalty points earned. As you can see the potential for large bonus amounts are extremely rewarding. This is yet another reason why CloudBet is a cut above the rest of the competition.

Mobile Betting

Even though CloudBet doesn’t offer a particular smart phone app, I found it extremely easy to view on both iPhone and Android devices. The pages are very mobile responsive and fits well within the layout of the screen.

The interface was very well developed to provide players with the best possible experience. All their games can be tested for free on your smartphone before making any deposits.

Conclusion

CloudBet offers the best Bitcoin sports betting platform out there. It’s very hard to find another Bitcoin sportsbook that even comes close to CloudBet offers with their various sports betting options and large deposit bonuses.

Support and live chat are very responsive and get back to you within a timely manner. The company clearly understands the importance of what sportsbook gamblers truly want… convenience and hassle free access to their most coveted sporting events.

Highlights include…

  • Instant withdrawals so that your winnings go straight to your account with the push of a button.
  • Every sport imaginable is covered.
  • The most impressive deposit and wagering bonuses around with a 100% match bonus of up to 5 BTC.

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Have Something to Add?

Post a comment below and let us know if you found any hidden gems or newer sites worth mentioning.

Also, let us know about some of your experiences with the sites mentioned above. If you had a negative experience, I highly recommend you take that up with support (or a corresponding subreddit) as most of these grievances can be taking care of internally.

Good luck and happy gaming!

 

Cannabis culture media organization High Times Holding Corp. will accept cryptocurrencies in its Initial Public Offering (IPO), High Times reports Aug. 2. In doing so, it will reportedly be the “first traditional stock offering ever to accept investments” in cryptocurrencies.

The “preeminent source for cannabis information since 1974” will accept Bitcoin (BTC) and Ethereum (ETH) in an effort to cast a wider net in attracting investors to the company. High Times CEO Adam Levin said:

“While we didn’t believe that the ICO [Initial Coin Offering] process was the right move for our brand, it would’ve been foolish to leave this emerging investor base out as we continue to transform into a diversified media, events and merchandise giant.”

Ahead of the IPO, High Times has filed a Regulation A+ report with the U.S. Securities and Exchange Commission (SEC). The report details $29 million dollars of reduction of negative equity, debt reduction, and decreases in operating losses.

Following an SEC rule change in 2015, Regulation A+ allows startups and small companies to “use a ‘mini’ [IPO]” to attract customers to become potential investors. Under the regulation, small businesses can crowdsource up to $50 million from members of the public.

Previous to the rule change, private companies could only seek investment from accredited investors, who are often the smallest and wealthiest portion of the population. Investors will be able to purchase shares in High Times for $11, a price the organization claims is a 10 percent discount on the strike price when it becomes listed on the Nasdaq later this year.

Levin said that accepting crypto is part of the organization’s mission to be “at the forefront of popular culture… not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”

Cryptocurrencies have previously been regarded as a tonic to the U.S. cannabis industry’s banking woes. While state ballot initiatives have made marijuana usage legal in a number of states, federally backed banks refuse to offer services to cannabis businesses. While customers prefer to pay with cards, dispensaries are confined to only accepting cash, which also makes them a target for robbers.

Last year, the Dash network began implementing Dash as a payment option in the cannabis industry’s point of sale (POS) devices. In doing so, Dash reportedly aims to save the industry 10-15 percent, as the decreased flow of paper money will stymie the need for armored cars, cash boxes, safes, and guards.

With all the available choices of altcoins in circulation today, choosing the right balance between risk and reward isn’t always as easy as it seems. What makes matters even more challenging is the fact that there are hundreds of projects which have already been labeled as “dead coins” by researchers who track the lifecycle of cryptocurrency beyond their initial coin offering (ICO).

Although there are many investors that are content with sticking to the top 10 altcoins regarding their investment portfolio, there are still plenty of others that are looking for the next “diamond in the rough” to bring them in the type of ROI beyond their wildest dreams.

In order to find these potentially lucrative altcoins, we have to look beyond the top 10 largest cryptocurrencies by market cap. It’s difficult to say if the points mentioned below will generate an ROI of 100X that would mirror the rapid rise in value like Bitcoin, Ethereum, Neo, Litecoin, but they have proven to be rock solid companies with utility technologies that far surpass your average cryptocurrency.

With that being said, the five altcoins we list below show an incredible investment opportunity as their project specifications suggest solid fundamentals.

Deepbrain Chain (DBC)

deepbrain chain logo cryptocurrencyCurrently valued at less than a dollar per coin, Deepbrain Chain is considered a bargain regarding his role it plays in artificial intelligence in order to lower computing costs. DBC is included in one of the fastest-growing market (AI) to date. This explains it’s undervalued status as the company explains within their white paper that 5000 AI startups came into existence within a four year (2012-2016).

Also worth noting, they collectively raised over $22 billion and unlike other crypto companies DBC has already established a partnership with NEO. The company is also considered to be one of the leading artificial intelligence projects within the blockchain space.

You can currently purchase this coin on the Kucoin exchange.

Power Ledger (POWR)

power ledger crypto coin tokenThis token is located just inside the top 100 (90 at the time of this release) in relation to its market cap, however the platforms value proposition is as valuable as they come.

Power Ledger platform allows users to trade electricity to one another in exchange for real time payments recorded on the blockchain. The company labels itself as “P2P marketplace for renewable energy” due to the fact that it allows consumers to select clean energy sources and receive payment for the excess power using a technology called “low-cost settlement”.

Much like other altcoins, PWR experienced explosive growth during the fourth quarter bull market of 2017. Tokens are currently at a bargain around $0.28 per coin at the time of this release.

You can purchase this coin on the Binance exchange.

Verticoin (VTC)

verticoin crypto coin token currencyThe next cryptocurrency on the list will catch your attention with its  outstanding development team, transparency, and ASIC resistance standard, making it one of the most decentralized cryptocurrencies on the market.

Heavy proponents of decentralization will find plenty of agreeable aspects to this token. Interestingly enough, Verticoin is one of the oldest cryptocurrencies on the market. It was founded back in 2014 as an alternative to Bitcoin and Litecoin. The project was even mention it Litecoin’s white paper is a candidate for atomic swaps and is on the forefront of Lightening Network development.

The long-term prospect of this cryptocurrency is about as solid as they come. You can purchase the coin on the Bittrex exchange.

DragonChain (DRGN)

dragon chain crypto coin token currencyThis project emerged out of Disney back in 26th. It has since been developed as an open source business platform that allows for the creation of secure and scalable blockchain.

DragonChain is part marketplace, part incubator, and provides a smart contract infrastructure with a heavy focus on development, security, and scalability.

Given its potential to transform small business adoption of blockchain, DragonChain is considered to be extremely undervalued due to the limited number of listings on current cryptocurrency exchanges.

The coin can be found on such platforms like Kucoin and EtherDelta. Look for its value to explode once it reaches some of the more mainstream exchanges like Bittrex and Binance.

The token is currently ranked at #134 with a market cap of $55 million.

Ark (ARK)

ark crypto coin token currencyThe Ark platform is a smaller Alternative to ICON, that carries huge potential in connecting networks. This token connects all cryptocurrencies through a virtual spiderweb of endless use cases.

The company employs a Delegated Proof Of Stake (DPOS) protocol which includes a universally accessible programming language as well as decentralization. Ark can be categorized as a platform coin, which means it’s a great currency to hold for a buy and hold strategy.

Ark token can be found on Bittrex, Binance, and Upbit. It’s currently ranked at #84 at the time of this release and has a total market cap of $104 million.

 

With so many cryptocurrency altcoins being touted as the next hottest investment since Apple stocks, Bitcoin definitely gets a run for its money. There are currently more than 1,200 cryptocurrencies at the time of this release. The choices are overwhelming, which makes it that much harder to decipher which one is actually going to get you that lambo or not. 

Two of the most popular questions, on the internet, regarding cryptocurrency are “What is the best cryptocurrency to invest in” and “What are the best trading strategies to use once I invest?”

Fortunately, I’m going to go over 7 of the most effective cryptocurrency investment and trading strategies in order to quickly fatten up that crypto wallet  of yours. 

So let’s cut to the chase and get straight to it shall we?

Trading Strategies to That  Actually Work

Let’s talk about investing in ICOs (Initial Coin Offerings)….

ico-initial-coin-offerings-cryptocurrencyWhy is investing in an ICO a smart move? An ICO is at its beginning stages of life, and this means you’re getting in on the ground floor. What does this mean for you? You’re able to purchase a coin much cheaper than when it’s released to the general public and therefore the potential to generate a huge profit can be rather significant. We’re talking 300-2500% profitable. Do your research on any of the coins that interest you. Below are a few points to look for before you invest.

  1. First check out some of the newest upcoming ICOs here for a nice selection and review on each one.
  2. What is the utility behind the coin, does it have a large supply and demand?
  3. Who’s the team behind the project? Have they worked on other cryptocurrency coins? What is there entire project mission?
  4. Do you have a continually expanding community of optimistic members (check forums)?
  5. There should be legal framework between the developers and the contributors. The terms and conditions set forth for the ICO should be clear.
  6. ICO funds should be held in an escrow wallet. One of the private keys needs to be held by a neutral third party to ensure all distribution is fair.

You should plan on purchasing several different ICOs , so don’t go putting all your “eggs into one basket”. If you don’t see an initial spike on the coin, upon initial release, wait until you see at least a 50%-100% return before selling.

Accumulating at the Lowest Price

It’s a smart idea to stick with a coin and accumulate it during its lowest price as it drops in value. It’s a common practice for traders & investors to withdraw some if not all of their investment, which essentially drives the price down. 

If this is a project you believe in, stick with it and hodl. A smart tip is to buy a coin that has already hit its first dip, as this will sometimes drive the price down to even cheaper than its initial ICO price.

Common reasons for a dip, once the ICO hits an exchange, can usually be linked back to the presale investors, along with the initial team and developers, who typically receive the coins for free. Be aware and cautious of those coins that are overly dumped.

Taking Advantage of Breakouts

This strategy can provide limited downside if done correctly. It is used by investors who actively trade, and are getting in on the initial stages of a trend. 

You want to invest at a precise entry, where you can identify resistance or support areas that are about to break out in a new direction. The coin either breaks upwards past a resistance (ceiling) or it breaks downwards past a support (base).

trading-pattern-breakout-cryptocurrency

Your best bet is to look for a clear breakout above resistance, and then wait for the bounce off that resistance which would be your new support. As soon as the coin starts trading beyond that new support, volatility in the market tends to increase which means prices will generally follow through the breakout direction.

These types of breakouts are important because they set up a new starting point for future volatility, thus increasing price action substantially. Chart patterns like head and shoulder patterns, flags, and triangles are a few to research when it comes to the most expansive types of breakouts.

The “Dollar Cost Averaging” Strategy

Here’s a strategy that doesn’t take a lot of time or knowledge to participate in. Dollar cost averaging is when you purchase a fixed amount of cryptocurrency at certain intervals while the price action is either moving up or down. 

dollar-cost-averaging-cryptocurrency-trading

What’s happening here is, you’re averaging out all the purchases within those set intervals (usually months) which can be averaged out to one average price. This price typically ends up being a much higher or lower price point then if you were to purchase in one lump sum at a single interval in time.

So for example, you plan on investing $2000 in Bitcoin, however you don’t want to just throw out your entire wad in one sitting.  Instead, you’re going to spend $500 at the 1st of each month for the next 4 months. This would look a little something like this…

– Month 1 – the price of Bitcoin is 9k. You purchase $500 worth. 
– Month 2 – the price of Bitcoin is 7k. You purchase $500 worth. 
– Month 3 – the price of Bitcoin is 8.5k. You purchase $500 worth. 
– Month 4 – the price of Bitcoin is 10k. You purchase $500 worth. 

Your total spend is $2000 at the price action of $8,625

As you can see, you were able to purchase Bitcoin at a much lower price than what you would have purchased at if you purchased in one lump sum on the first month. 

Now, you “always” want to make sure you’re doing your due diligence, by checking charts for proper technical analysis, in order to ensure you have the best chance of averaging down on a coin that will rally back to previous resistance lines (peaks).

Check at least 3-6 months history to ensure the currency has previously recovered, on several different occasions. I highly recommend you do this with a cryptocurrency that has been established over a longer period of time (BTC, ETH, NEO, OMG, LTC to name a few).

What you DO NOT want to do is “catch a falling knife” by dollar cost averaging your way down on a coin that holds no history of ever recovering to previous highs. Please make note of this.

The Balanced Portfolio Strategy

If you need balance in your life this may be the strategy for you. A balanced portfolio strategy includes purchasing various crypto coins, for the same amount across the market. 

Say you invest in-

  1. Litecoin
  2. Bitcoin
  3. Monero

You have a budget of $900. You’d invest $300 into each coin distributing your investment evenly. This way you’re spreading the risk across the board.

This is a good way to test different coins, when you’re unsure of which ones will do well for you or not. You’ll quickly find out which coins have the best shot in succeeding. From there you may want to only invest in one or two coins that have given you the lion’s share of profit.

The only downside to this strategy is that, for example, one of the coins produces a 10% gain while the other two lose 5%, you would be stuck with no profit, however this is rarely the case. Of course this would work in reversethe opposite could happen as well, so again, you’re essentially spreading out your risk across several coins with this strategy.

Tip: Make sure each coin you invest in are utilize different utilities. For example: one privacy coin, one security coin, one equity coin, etc.

The Unbalanced Portfolio Strategy

unbalanced-crypto-coin-stack-strategyThis is simply designating a percentage of crypto for investment into each coin solely on how well you think it will perform. You’ll allocate the highest percentages to the ones you think will perform the best.

If Litecoin has proven itself to you as the most profitable, then that’s the coin you invest the most into.

For Example:
Litecoin – 60%
Dash – 15%
Ethereum – 15%
Ripple – 10%

Predetermined percentages are what you would go off of, for each subsequent buy.

This is best suited for those that have done extensive research into each coin. Percentages for each coin can be changed, but make sure you have an educated reason before doing so.

Main downside for this strategy is predicting percentages incorrectly and missing out on the best gains.

Investing Your Profit into Other Coins

investing-in-other-cryptocurrency-coins-bitcoin-litecoin-ethereumSo you’ve made some steady profit on the strategies covered above and have had success in building your wallet full of those nice, shiny cryptocurrency nuggets. Now is the time to pick up other potential coins that showcase huge potential.

You want to take half of the profit you have made on each coin, and start investing it into other coins with high profit margins. This will help leverage your investment in order to produce more gains on your return and create a well-diversified portfolio. Look for times when your profits go parabolic (spike in price). This typically means the price is unsustainable and would be a good time to cash out and reinvest into another cryptocurrency before the price drops.

Remember, when you’re first starting out, it’s a good idea not to invest in too many coins at one time. You want to be able to keep a steady hand on the pulse of your coins for the very best growth potential.

So Which Strategy Will You Use?

With all the strategies I covered above, choose one and stick to it. You can later try others later once you have a bit more experience under your belt. All your strategy to change and grow over time.

If you have any cryptocurrency investing questions, leave them in the comments below. I love to hear feedback from others. Thank you!

When cryptocurrency development firm Block.one concluded its initial coin offering (ICO) and released the first version of the EOSIO software, it didn’t just raise a record ~$4 billion in crowdfunded contributions — it also received 100 million of the 1 billion EOS tokens distributed through the network’s Genesis block. Now, the well-funded blockchain startup is vowing to use those tokens to stave off any block producer voting cartels, whether they are present now or arise sometime in the future.

Writing in an official statement published on the company’s blog, Block.one CEO Brendan Blumer stated the firm intends to use its EOS stake to ensure that the network’s on-chain governance model is characterized by a “free and democratic election process.”

He wrote:

“We are aware of some unverified claims regarding irregular block producer voting, and the subsequent denials of those claims. We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process. We continue working on our potential involvement with the goal of empowering the intent of the greater community through a transparent process that incorporates community feedback.”

Blumer’s statement was prompted by allegations, first circulated on Chinese social media platform WeChat, that a group of block producers was operating a voting cartel.

EOS cryptocurrency

Unlike Bitcoin and other Proof-of-Work (PoW) cryptocurrencies, EOS does not use mining to secure the network, verify transactions, and introduce new coins into circulation. Rather, it uses a Delegated Proof-of-Stake (DPoS) consensus, through which users can “stake” their tokens to vote for a group of 21 entities — called “block producers” — who take turns validating transactions and adding blocks to the blockchain. According to an unverified document allegedly leaked by an employee of a top 21 block producer, node operators have formed a cartel to circumvent that democratic process.

Per the document, various block producers have inked mutual voting pacts, through which they agree to stake their tokens to vote for a group of candidates in exchange for the other candidates voting for them in return. The document further purports to show that at least one cryptocurrency exchange is also operating a pay-for-play scheme, voting for certain block producer candidates in exchange for a percentage of their revenue or outright EOS payments.

China-based cryptocurrency news source cnLedger reports that this exchange — Huobi — has denied having a financial relationship with other block producers.

Block.one first announced in June that it planned to use its EOS tokens, which still account for nearly 10 percent of the cryptocurrency’s circulating supply, to participate in block producer elections.

However, those funds account for an even larger percentage of the network’s votes, since many token holders decline to stake their tokens and participate in on-chain governance. According to data compiled by block producer candidate EOS Authority, 54 percent of EOS tokens are currently staked, though — because votes “decay” over time to encourage users to remain active in network governance — actual voting power is much lower, at just under 26 percent.

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