Something is definitely brewing in Facebook’s newly formed department. Early in May, there was a rumor that Facebook was interested in opening a cryptocurrency department within its headquarters. The advertised positions are: Two Software Engineers
China’s Central Bank deputy governor has denounced STOs terming them as illegal activities in China following the slow progress from Initial Coin Offerings to the newer ICO called Security Token Offerings. STOs represent an ICO backed by tangibles such as assets, or profit or revenue of a company. Ultimately more lucrative than an ICO. However, both are still currently banned in China.
Pan Gongsheng, the deputy governor of the People’s Bank of China said that financing activities through STOs and ICOs were illegal, even though the activities continue to be rampant in the mainland following a nationwide crackdown of cryptocurrency markets from 2017.
Companies have been looking at moving to STOs following the lack of success with ICOs recently, companies in China may think that this loophole allows them to promote their business as ICOs are currently illegal in China. However, the governor announced, “The STO business that has surfaced recently is still essentially an illegal financial activity in China, Virtual money has become an accomplice to all kinds of illegal and criminal activities.”
Gongsheng admits that most ICO and STO fundraising projects in China are linked to possible illegal fundraisings and pyramid schemes, among other financial fraud.
China’s crackdown on ICOs in 2017 came after 80% of all ICO financing was taking place in China. The clamp-down in a bid to curb crime within the industry appears to have had a positive effect on the industry. China took steps to stop ICO operations and participation within the country due to the negative effect the potentially illegal activities could have on the countries overall financial industry.
Huo Xuewen, Chief of financial watchdog Beijing Bureau of Financial Work, issued a stern warning to anyone trying to operate an STO in China “I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”
China remains one of the massive players in the cryptocurrency space and is taking steps to prevent companies from taking advantage of citizens and damaging the financial industry in the country.
A Reddit post from today highlights the risks inherent in crypto investment, noting that the poster took the $20,000 loan he got for debt consolidation, put it into cryptocurrency. The post solemnly includes, ‘I’m wondering the extent of the troubles my stupidity will bring me.’
The poster says that in addition to the debt he already took the loan out against, they are now ‘paying a total of $1300 in debt payments and the total interest hitting me is $700 a month.’ While anyone with any investment in cryptocurrency is likely praying to the decentralized gods for a crypto turnaround, this individual sincerely needs something to turn around soon.
The anecdote is yet another reminder that one should absolutely not invest something in cryptocurrency they couldn’t afford to lose. The market is simply too volatile and new for any investment to have any sense of security. Crypto is interesting in this way, as it attracts investors with little experience (and often with little-starting capital) despite being one of the most challenging markets for even veteran investors to make correct predictions in.
While most in the thread called out the poster for essentially gambling away money he sorely needed, some gave advice, and one user noted that ‘You didn’t gamble it, you invested it. Stupidly, perhaps, but all investments are gambles.’ Indeed, all investments on some level are gambles, but sometimes the stakes are just not worth the odds.
Lyoness has been declared an illegal pyramid scheme in Norway, Austria, and Switzerland. A video has emerged that appears to show Hosp presenting an online tutoring session before becoming the face of Tenx.
The emergence of the video points to a damning lack of integrity and a willingness to promote a dishonest project by the TenX President in pursuit of Profit. In the video, Hosp is heard advising potential clients to exploit relationships with friends and family because they “cannot evade” them, and to hide the real reason for requesting meetings with them.
TenX raised over $80 million in its ICO last year on promises to “make cryptocurrencies spendable anywhere anytime” by connecting bitcoin to the real world with a Visa debit card and banking license. According to the TenX whitepaper, the platform native PAY token would qualify holders to dividend payments generated from the use of its cards – a promise which has since been dropped. The bitcoin-linked debit cards is yet to be produced one year Later.
With that said ,some early Investors have concluded that the company is in fact yet another iteration of an ICO exit scam.
Check out the Video:
The video is unlikely to bother Hosp too much because multi-level marketing schemes are not a regulatory priority in the U.S. What will bother him a whole lot more however is the SEC’s current affinity for prosecuting ICOs that sold unregistered securities during the height of the ICO boom last year, one of whom is TenX.
A wealthy Bitcoin wallet which had remained inactive for the last 5 years made a surprising hefty deposit of 66, 233 BTC ($256 million) two days ago. Now, Bitcoin whales (people who hold large amounts of Bitcoin) do exist; basically 1,600 BTC wallets hold about 28% of the coin’s existence. The Financial Times reported that each of these wallets hold up to 1000 coins. Bitcoin whales usually trade on large and liquid bitcoin exchanges. With the evolving market, whales have adopted ways to trade on large sums and stay anonymous while at it.
Last year, the market value of BTC was $20,000 which has fallen to lows of up to the $3,500 mark as of late-November, proving that the market is highly risky (without looking at the potential of price manipulation) even for the early investors. This is not the first time such a deposit has been made by a Bitcoin whale. On 12th November 2017, $159 million worth of Bitcoins were moved to an online exchange. In early 2018, a Bitcoin whale purchased $400 million worth of coins in a single transaction.
The trouble with these moves is that they make the market unpredictable since it may cause huge dumps of coins and panic sales. Selling even a portion of their shares in Bitcoin can cause the prices to plummet. Whales are a huge problem to investors because of this risk, especially now that the market has suffered immense value losses.
This market manipulation stand can be well coordinated among whales and can prop up or drop the market in total. In April this year, Bitcoin whales dumped about $100 million causing a $6,500 drop-in BTC value. Which means the small-time players are always at a disadvantage. Now, with the delay in cryptocurrency regulation, whales and bulls move in the market were still very much open ground and for the most part, legal. It also does not help that the crypto market is still relatively new, still undergoing technological revolution and adoption.
At the time of post, the whale is still unknown. For one to execute such a transaction, they must be a high ranking BTC investor. According to Fortune, there are 32 big players in the BTC whale pool who control 4.5% to 6% of the market. For example, the Winklevoss Brothers own over $1 million in BTC coins, and Satoshi Nakamoto remains to be the one superior whale.
The condition of the crypto market now can be blamed on a steering position by market whales. Other reasons include regulation issues and taxation and legislation regarding fraudulent activities in the crypto world. Although the market might recover, maybe through the introduction of a Bitcoin ETF, it still remains unknown how the future of cryptocurrency will be.
The recent activity remains a mystery since it is not clear what the intention of the coin movement is. If it is a selloff, then the impact on BTC price will surely be devastating and cause prices to stumble further down. It remains to be seen in the run-up to 2019 if the market will recover and by how much of a margin.
A bitcoin-replica launched with an aim to discourage miners from forming pools and gain a monopoly over its network has been compromised.
Mark Nesbitt, a security expert, revealed that the blockchain of Vertcoin, a peer-to-peer PoW cryptocurrency, is under a 51% attack. The Coinbase engineer found that some anonymous cybercriminals rented a large amount of ASIC hash rate to attack the four-year-old cryptocurrency network. They eventually got hold of more than 50% of the mining hash rate which allowed them to own and govern the Vertcoin public chain literally.
The integrity of a PoW cryptocurrency depends on the distributed nature of its network. It is considered decentralized when no miner or mining pool possesses more than 50% of the network hash rate. If a mining entity gains control of the majority of the hash power, then it could create separate blocks from any arbitrary previous block, creating two versions of the same blockchain. And if the alternative blockchain – controlled by a single entity – starts producing more blocks than the rest of the network, then it could lead to a situation termed as chain reorganization.
To worsen the situation, if a miner holds a large number of coins, it can also launch a double spending attack on the network. For instance, a miner can initiate a transaction on the main chain, but it can replicate the same transaction on the alternative fake chain as well. As a result, both the transactions send the same coin, and only one of them can be confirmed while the other remains invalid.
Altcoin Exchanges Vulnerable
Nesbitt warned exchanges involved in the trading of PoW-based altcoins of potential losses, blaming their lack of effective countermeasures.
“This is because exchanges allow deposits to be hurriedly traded into different assets and then withdrawn,” he emphasized. “An attacker can make a soon-to-be-reversed deposit, trade for another asset, move the new asset off the platform, and then reverse the original deposit.”
Nesbitt cited similar incidents that have taken place in the industry this year, naming BTG, XVG, and MONA. They all eventually got delisted from some of the significant global cryptocurrency trading platforms.
“I encourage you to trade on exchanges that place the security of customer funds as their highest priority,” Nesbitt affirmed.
Bitcoin SV’s enhanced Capacity means it will in future be capable of hosting billions of people on a daily basis according to project’s lead engineer Daniel Connolly.
As a member of the SV development team, Daniel told Cryptocoinjunky that billions of people will be able to use the payments protocol. As the block size slowly increases, hopefully to 2 GB by Q4 2019, more people will be able to use Bitcoin SV without putting too much strain on the network.
“We aim to have 5 billion people [using BSV] on a daily basis”, said Connolly, at a CoinGeek conference in London. “We still have a long way to go, but it will become possible so far as we scale.”He added.
Bitcoin SV (‘Satoshi Vision’) was a proposed protocol implementation for the Bitcoin Cash (BCH)network upgrade, which took place Mid –last Month. BSV doubled the block size from 64 MB to 128 MB. Supporters of the Upgrade included Calvin Ayre, the founder of CoinGeek, and Craig Wright from nChain.
Initially a proposal for BCH(Bitcoin Cash), not everyone agreed with Satoshi Vision. Most notably, Roger Ver(Bitcoin.com) and Jihan Wu (Bitmain) who proposed their own implementation, known as Bitcoin ABC.
Within a week, a majority of the Crypto exchanges and data aggregators had accepted ABC as Bitcoin Cash. But followers of Satoshi Vision stayed on their own network. Bitcoin SV blockchain network is currently valued at over $1.7bn.
The main priority for Bitcoin SV is scalability. Connolly says that the plan is currently for the block size to increase to 512 MB in May and then to 2 GB by next November. Within 18 months they want to remove a limit on block sizes and allow miners to decide for themselves the size of blocks they wish to mine.
Scalability is the main aim. Satoshi Vision was able to handle 1.6million transactions during a four-hour stress test, conducted in early November. But as the name – Satoshi Vision – implies, the project wants to remain truthful to what they see as the only fully decentralized and viable blockchain. This is encapsulated by Satoshi Nakamoto’s Bitcoin whitepaper according to them.
Simit Naik, nChain’s Director of Business Services, explained that SV was a way to restore Bitcoin back to what was originally imagined. Bitcoin SV wants to be a decentralized alternative to Visa or Mastercard but it needs to convince its target market according to Simit Naik.
He further stated that enhancing the network capacity, one with smaller transaction fees and faster payments is the answer. Also Targeting parts of the world that still lack access to modern financial services will improve mass-adoption.
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.
The past week has seen the cryptocurrency bear market thrive on its position with prices plummeting to their lowest since October 2017. In August 2018, Bitcoin prices had started the downward freefall with prices threatening to hit below the $5,000 mark, and they eventually did in November. Cryptocoinjunky has posted articles on the reasons behind the Bitcoin crash which had been highly anticipated due to the splitting up of Bitcoin SV and Bitcoin ABC.
Back in August, cryptocurrency experts were markedly optimistic about Bitcoin prices recovery. Meltem Demoirs of CoinShare actually compared Bitcoin to internet stock prices. According to him, new technologies that capture the attention of many usually tend to face incredibly challenges severally before being fully utilized and prospering. He envisioned crypto technology as such an invention.
Since Bitcoin took off in 2009, cryptocurrencies have made significant strides in the digital currency world. But the question still lingers on the worth of digital assets investments in the future. Let us have a look at a few comments and market predictions from crypto experts on the current cryptocurrencies state.
Bitmex’s crypto expert Arthur Hayes believes that Bitcoin prices will hit $50,000 by the end of the year. This is despite the severe plummet of prices across the board that has been experienced in the last few months.
A sitting panel put together by investment company Finder analyzed the top performing coins by market cap. The predictions were set on an overview of 2018/2019 market price analysis.
In summary, the panel was optimistic that XRP, ETH, and EOS will increase in value by almost 200% by the end of 2019. Bitcoin will follow suit by an increase of 177% and Bitcoin cash by 77%.
Jeet Singh boldly compared crypto to Apple and Microsoft stating that it is completely normal that cryptocurrencies fluctuate by 70-80%. The volatile market may be unappealing to most investors but according to the investment portfolio manager, the more stable business models and crypto technology becomes, the more confidence it should inspire. Is he right? Is it a short term or long term prediction?
Kristjan Dekleva, a Swiss-based financial analyst and asset investment expert seems to see the future in crypto will be a long time coming; a decade, but will surely be worthwhile. He seems to echo the sentiments by Meltem Demoirs as far as cryptocurrency market stability is concerned. According to him, crypto downfalls have ‘been caused by emotions and misinformation where small rumors have a big impact.’
Kenneth Rogoff shades the sentiments of Kristjan and says that the price of Bitcoin will be worth $100 in ten years. Rogoff based his argument on the regulation of cryptocurrencies that he is sure will cause the market to plummet. In his expert opinion, governments and regulatory bodies hardly seem to grasp the technology behind digital assets and for this reason, the market will be hard hit as financial bodies come up and design regulatory frameworks regarding crypto transactions.
Gemini co-founder, Cameron Winklevoss is also optimistic, although on the drawn outside of things. He is sure that the price of Bitcoin could go up by 40%, in a decade or so. He also stated that the crypto market is highly underappreciated and it is one of the reasons why the market is so volatile.
Bobby Lee, co-founder of BTCC made a lauding comment on twitter regarding the value of Bitcoin compared to that of gold. On November 20th, 2018, he tweeted that Bitcoin is currently 1/8 the value of gold. He predicts that Bitcoin’s ‘rise to the top’ will not come easy but is definitely an outcome to look forward to. Only ‘true believers’ will survive to reap exceedingly great profits from Bitcoin after the bear season subsides.
John McAfee, the ever bullish supporter of Bitcoin came out hard on panic sellers today and asked them to relax or just get out of the market altogether. His tweet is unprintable (the cursing alone) but he has a point. According to him, the cycle of investment markets is always the same. Cyclical. It has ups and downs; at times the down being brutal and it does not help that investors are panicking. ‘Bear markets are like winter, it’s always followed by a glorious spring.’ He points the recent crash on fear, ignorance, misinformation, and uncertainty.
With the sentiments above and numerous others not posted, I think it is safe to say that yes, indeed the market is notoriously volatile, unpredictable, but not uncertain. Bitcoin prices will rise. For one, the crypto market is in constant expansion. For example, Saudi Arabia and the UAE are developing a cryptocurrency that will be launched mid-2019. Intercontinental Exchange, owner of the NY stock exchange has plans underway to open a Bitcoin futures product, the Bakkt Bitcoin Daily Futures Contract, which will be launched in early 2019.
Cryptocurrency regulation will aid the digital assets market to stabilize, even though short term, it will and is currently causing prices to drop (refer to recent developments in South Korea and China).
Francesco Fusetti CEO of AidCoin stated today that the drop in prices is actually beneficial to the market as it weeds out weak performers and strengthens knowledge of digital assets trading. Bitcoin has been the top performing coin in blockchain technology since its inception and has set a standard for virtual currencies.
Bitcoin is the single pioneer into digital assets and has attained high values of billions of dollars in virtual assets. The transaction system itself is still going through regulation processes in most of the global economies, where financial institutions advocate for governments to back digital currencies.
The delay in regulation opened up Bitcoin trading to incredible and innovative fraudulent activities. Also, the fact that the notion of digital assets was and still is fairly unfamiliar cripples a lot of ‘green investors’ and opens them up to losses through fraud. Another reason is the technology behind digital transactions. Basically, the value of Bitcoin is based on a technology that very few understand. Needless to say, all of Bitcoin fraud happens online and Cyber criminals use these innovative technological operations to serve their own purposes.
Majority of Bitcoin fraud victims are usually unsuspecting novices and occasional seasoned traders. I will highlight the most common ways in which Bitcoin scams are carried out and how to protect yourself.
1.Fraudulent Bitcoin Wallets
Fake wallets were the easiest way for scammers to defraud investors. These wallets first appeared as mobile applications on the Apple and Google Stores. Granted the majority of users are completely confident in the authenticity of the applications. And they do not engage in sale or purchase of coins. It’s difficult to detect fake wallets and investors should avoid using third party wallets without verifying the links and adverts of such wallets on the main websites.
If you are unsure of the wallet, ask for help from someone who understands Bitcoin and wallets specifically. Looking at the reviews might also be helpful but not guaranteed.
One Trustworthy Bitcoin wallet is Blockchain.info
You can also Store your Bitcoins in an Exchange such as Bittrex.com
2.Non-existent Bitcoin transactions
Believe it or not, one can learn how to do fake Bitcoin transactions right from the internet: not because it’s the easiest thing to do, but Bitcoin greedy miners/scammers are very innovative in how they do these transactions. It’s practically ‘impossible’ to duplicate a Bitcoin transaction. This is because once you transfer Bitcoins from one account to another, the distributed ledger network registers it as a submitted transaction and prevents you from doing it again and again.
The verification process alone is enough to discourage counterfeiting a Bitcoin transaction. Unfortunately Bitcoin transactions are not free of loop holes. In brief, it is a Bitcoin flipping trick, offering exchange of Bitcoins for cash and they are able to advertise the same offer to as many people as possible in a very short period of time. But the other end of the bargain is never held up.
Unsecured websites offering Bitcoin at discount prices
Temporary offers to sell Bitcoin for Paypal
3.Bitcoin phishing impersonators
Bitcoin fraud gave rise to one of the largest money laundering cases in 2017 when Russian citizen Alexander Vinnik was accused of laundering an estimated sum of $4 Billion in Bitcoin, part of which was obtained from a hacking scheme of a failed Bitcoin exchange Mt. Gox.
One of the easiest ways this is done is through running fake adverts on social media or impersonating the Bitcoin brand itself. The issue is that the scammers are so good at this that they even ask you to check your Bitcoin key on their website to confirm its existence. That is how Finish millionaire Aarni Saarimaa lost over 5,000 Bitcoins to fraudsters in Thailand, after falling victim to a casino project and the idea of an upcoming cryptocurrency.
4.Bitcoin Pyramid schemes
This is the oldest trick in the investment book. The working principle here is multi-level marketing. Selling an idea based on minimal investments for higher yields by signing up as many people as possible. Then like dominoes the original scammer always walks away with all the investment and the scheme collapses.
Bitcoin on Wednesday challenged new highs as price against the US Dollar surged 1.42 percent within a few hours.
The BTC/USD pair built upon the near-term bullish scenario after breaking above the interim resistance explained in our previous analysis. A breakout action above 6421-fiat started attracting long positions towards 6500-fiat as the primary upside target. The pair rallied and established a new intraday high towards 6515-fiat before retreating across the exchanges. It is now trading at 6507-fiat.
The Dollar meanwhile slumped very little ahead of the US midterm elections. As of now, the Democratic party has announced its victory after winning 218 seats to control the House. The results could particularly weaken the dollar further, allowing US stocks to breathe a bullish air after the markets open today. In parallel, Bitcoin – a 24/7 open market – is already showing signs of a strong bullish bias in near-term.
The previous resistance at 6421-fiat is now taking up the role of a support after the BTC/USD rally. The pair is hinting a small bearish correction already, with its RSI and Stochastic Oscillator situated around the overbought area. The volume nevertheless has dipped as of now, meaning the new few hours could exhibit a stable price action before a downside correction attempt.
The BTC/USD pair is already trending inside a near-term rising wedge that is usually considered bearish for the same timeframe. The pair, now testing the upper trendline, should reverse and bring the lower trendline in view of the correction. That certainly is a decent short opportunity for day traders. Both the trendlines are almost parallel, so the price should start losing volume as they begin to converge. It could be the foremost signal of a breakdown scenario below the lower trendline. That also indicates that rallies taking place inside the rising wedge will prove to meaningless unless a sharp breakout above the upper trendline changes the technical dynamics overall.
Our intraday analysis enables us to make profits regardless of the direction of the Bitcoin price action. The range we are watching today has 6513-fiat serving as interim resistance and 6421-fiat serving as interim support. The range is wide enough to apply our intrarange strategy. Therefore, a pullback from resistance enables a short position towards support and a retracement from support enables a long position towards resistance. It’s that simple.
Nevertheless, the real profits lie in the breakout targets. As we are already near the resistance level, a weak US dollar is allowing us to enter a long position towards 6640-fiat, our next upside target. Meanwhile, we are also maintaining a stop loss order just 3-pips below the entry point to exit the market on a small loss, in the event of a pullback action.
Looking towards the south, a break below 6421-fiat will have us enter a short position towards 6372-fiat, the bottom of the November 5 trading session. In this position, maintaining a stop loss order just 4-pips above the entry point would ensure that our risks stay lesser.
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