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Thursday May 3 2018, Daily News Digest

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United States

Coinbase value more than quadruples to staggering $ 8B (CoinGeek), Rated: AAA

Case in point is San Francisco-based exchange Coinbase, which is now reportedly valued at a staggering $8 billion. That’s a jump of over $6 billion from the $1.7 billion valuation it reported less than a year ago—an incredible increase that demonstrates the power of the crypto boom in late 2017.

Coinbase Discloses Corporate Data In Response to NY Crypto Inquiry (CoinDesk), Rated: A

Schneiderman’s office launched a “fact-finding inquiry” into cryptocurrency exchanges in April, sending a detailed questionnaire to 13 firms, including Coinbase.

In the public version of Coinbase’s reply, Lempres addresses the assets kept on Coinbase’s platform ($150 billion in total), the firm’s funding ($225 million to date), its financial position (“a profitable and self-sustaining business”), and its personnel levels (over 300 employees, 1,000 total when you factor in contractors).

Coinbase to Open Chicago Office to Attract Institutional Clients (HiBusiness), Rated: A

Cryptocurrency industry giant Coinbase is set to open a Chicago office offering block trading to draw in more institutional clients to GDAX, which is its professional trading platform.

Goldman Sachs to Open a Bitcoin Trading Operation (The New York Times), Rated: AAA

But Goldman Sachs, perhaps the most storied name in finance, is bucking the risks and moving ahead with plans to set up what appears to be the first Bitcoin trading operation at a Wall Street bank.

Ripple [XRP]’s smart contract platform ‘Codius’ revived (AMBCrypto), Rated: AAA

According to sources, Codius, the smart contract platform established by Ripple is being revived.

It was discontinued in 2015 as the crypto market was still in the early stages. At the time, there was also a lack of a standard for payments using smart contracts, which lead to the project being phased out.


Reddit to Re-Enable Bitcoin Payments, Ethereum and Litecoin Support Coming (CCN), Rated: AAA

Christopher Slowe, the CTO of Reddit revealed that they are working towards bringing back Bitcoin payments on their platform in an interview with Cheddar. He confirmed that they did not have the time to work towards making the Coinbase upgrade because they were focused on the new Reddit Design.

When asked if they intend to accept Cryptocurrencies other than Bitcoin, Slowe said:

“We have been looking at other Cryptocurrencies. We are looking at Ethereum and Litecoin that are provided by Coinbase as well”.

Bitcoin Network Hashrate At All Time High Even Among Market Corrections (CoinTelegraph), Rated: AAA

The Bitcoin (BTC) network’s hashrate is continuing to climb today, May 2, according to data from BitInfoCharts. The continuous growth of the hashrate over the past months signals a constantly increasing level of interest from the miners, in spite of Bitcoin’s inability to break the $10,000 price point after the market crash in February.

The rising hashrate – last recorded on May 1 as 31,590 PH/sec – means that new miners are continuously starting to mine for Bitcoin in spite of market fluctuations. This causes a constantly increasing competition between the miners and the resulting improvement of the network’s overall security.

bitcoin hashrate
Source: CoinTelegraph

3 Things That Could Lift Bitcoin Prices To New Highs (Forbes), Rated: A

After a nasty correction, Bitcoin is back big time. The “people’s currency” has gained close to 1.54% in the last seven days alone, stabilizing around the $9,000 mark.

7d Performance of Major Cryptocurrencies

Cryptocurrency Price %7d Change
Bitcoin $9158.81 1.54
Ethereum     682.70 8.97
Ripple         0.85 4.46

Cryptocurrencies are heading for a 90 percent correction (CNBC), Rated: A

Cryptocurrencies are heading for a 90 percent correction from CNBC.

Tim Draper On The Future Of Cryptocurrency, His New Book And Why Bitcoin Will Hit $ 250,000 by 2022 (Forbes), Rated: AAA

Last month, the famous venture capitalist and inspiring entrepreneur, Tim Draper, made a prediction that Bitcoin will hit $250,000 by the year 2022.

Tim Draper:  As a “hodler” myself, I believe it’s important to sacrifice in the short term for a long-term gain. Having a long-term approach to everything goes a long way – from investing to being an entrepreneur to just living your life.

Wolfson: How did you come up with the number $250,000 by 2022?

Draper: For instance, right now there is about $80 trillion worth of fiat currency in the world. I believe that cryptocurrencies will expand that market. I think that cryptocurrencies will eventually grow to maybe $100 trillion and fiat currencies will fall from $80 trillion to $30 trillion.

I predicted that Bitcoin might end up with a 20% to 30% market share. I sketched that out and I think the asymptote is somewhere around $130 trillion, but only maybe $100 trillion would be cryptocurrency and 20% of that would be Bitcoin. However, it would take 10-15 years to reach that asymptote, so I’m thinking that along the way we are going to see Bitcoin at $250,000 by 2022.

The Blockchain Data Problem Might Be Bigger Than You Think (CoinDesk), Rated: A

A straightforward data point – the total supply of bitcoin hit 17 million.

But as with most things in crypto, it wasn’t so simple.

Every 10 minutes or so, miners find a block of transactions and the network adds 12.5 new bitcoin to the total supply as a reward for the finders. And each reward has been logged on the blockchain since bitcoin launched in early 2009.

The US is approaching a defining moment for cryptocurrency innovation (MIT Technology Review), Rated: A

The central question: It all hinges on whether Ethereum’s developers are in a position to significantly influence its currency’s value the way a company canaffect its stock price. People in the “no” camp argue that the decentralized computer network the currency is based on prevents that kind of influence. Nonetheless, at MIT Technology Review’s Business of Blockchain event last week, Gary Gensler, former head of the Commodity Futures Trading Commission, argued in the affirmative.

Substratum Has Twitter Hacked, Scammers Post Fake Coinbase Listing Announcement (SludgeFeed), Rated: A

The latest victim of the ongoing crypto-related Twitter scamming spree is Substratum, which had its official account compromised, tweeting a fake announcement stating that the project had been “accepted for listing on Coinbase.” In response to the fake post, the price of Substratum (SUB) surged nearly 15% in less than 10 minutes.

Source: SludgeFeed

PropertyCoin Launches Initial Coin Offering for Security Token backed by Real Estate (Crowdfund Insider), Rated: A

Aperture’s PropertyCoin initial coin offering kicked off yesterday as the company seeks to marry blockchain and real estate backed investments. Property Coin is said to be the first opportunity to own a professionally managed real estate portfolio using Ethereum.

Based in Los Angeles, Aperture is a real estate tech and lending company. The company focuses on the fix and flip space claiming they have delivered over 50% un-levered IRRs to date.

Blockchain Media Firm Civil Launches an Ambitious Studio to Build an ‘Open Marketplace for Journalists’ (Fortune), Rated: A

The wildly ambitious media startup, Civil, just got a little more ambitious. On Wednesday, the New York-based blockchain company announced Civil Studios, which aspires to fund a range of big projects—from documentaries to podcasts to news investigations—as part of its plan to redefine the business of journalism.

Blockchain Startup Hires PayPal Co-Founder (PYMNTS), Rated: B

Origin Protocol, a blockchain-based sharing economy startup, has brought a PayPal co-founder on board as a research and development engineer, CoinDesk reported. Yu Pan will spearhead the startup’s research team, according co-founder Josh Fraser.

US Judge Rejects Alibaba’s Copyright Infringement Lawsuit Against Crypto Firm (NewsBTC), Rated: B

A U.S. judge has rejected Alibaba Group Holding Ltd’s bid for a preliminary injunction to block a Dubai cryptocurrency firm, Alibabacoin Foundation, from using the Alibaba name.

Crypto Wallet Provider Blockchain Opens San Francisco Office (Cryptocurrency News), Rated: B

A London-based crypto wallet provider has designated San Francisco to be its new home. More specifically, Blockchain – both a wallet and data provider, announced Tuesday that it will be opening an office in the hilly city.


Bittrex vs Binance Exchange Comparison (Coin Central), Rated: AAA

Bittrex vs Binance: The battle of two of the most popular altcoin trading platforms. Both exchanges are commonly recommended for investors looking to move on to something more advanced than beginner platforms like Coinbase or Gemini.

Although you can transfer any supported cryptocurrency to either platform, we recommend you deposit the coins that have trading pairs. Those are:

  • Binance: Bitcoin, Ethereum, Binance Coin, Tether
  • Bittrex: Bitcoin, Ethereum, Tether

Bittrex includes the typical graphs that you see on a trading platform (candlestick, depth chart, volume bars) as well as the order books all on the same page. You can quickly switch between coins for easy analysis.

Source: Coin Central

Similar to Bittrex, the Binance interface shows candlesticks and volume data. However, you need to click a separate tab to see the depth charts. Binance also makes switching between coins simple. Once again, you can set market, limit, and stop-limit orders on the exchange too.

Source: Coin Central

Bittrex charges a flat trading fee of 0.25% on all trades.

Binance has a 0.10% fee for each trade. However, if you pay your trading fee in Binance Coin (BNB), the fee is only 0.05%.

Some cryptos don’t meet these two criteria… so they’re coming back (Stansberry Churchouse), Rated: A

There are two reasons that the price of an asset collapses and never recovers…

1. It’s a scam. The asset never should have been treated like an actual object of value, or asset worthy of a valuation greater than zero, in the first place.

2. A structural shift. There’s permanent, structural change in the market – when the cycle itself is broken. This hardly ever happens. It’s when climate change means that the cycle of seasons no longer applies, for example. Or if the demand for horse buggies evaporates – forever – when cars come along. Or in 2006 or so, when Chinese demand for commodities meant that commodities prices would be “stronger for longer” indefinitely. In general, if you think that it’s different this time in the context of structural change, you’re probably wrong.

Where we are today With Cryptos In The Boom Bust Cycle (ValueWalk), Rated: AAA

As my friend and crypto colleague Tama Churchouse hasn’t tired of telling subscribers to Crypto Capital, most ICOs (initial coin offerings… kind of like an IPO, only in for crypto assets) fall into the bucket of 1 above: They’re toxic garbage.

This is what a bubble looks like

1. Stealth Phase. The initial bubble stage is where a new market opportunity, or paradigm, is cautiously recognised by early smart money investors.

2. Awareness Phase. As market prices rise, more investors are attracted to the new investment story.

3. Mania Phase. Now everyone notices the rising prices. The media is touting “the investment of a lifetime.” Price becomes detached from underlying economic reality. Euphoric, irrational investors project recent price gains into the future. Enthusiasm spreads like a contagion between investors. A feedback loop ensues – rising prices amplify stories that seem to justify high valuations, which attract an ever-increasing number of buyers.

4. Blow-off Phase.

crypto bubble

bitcoin bubble 2017

Cardano (ADA) Wants its Place on Coinbase (Global Coin Report), Rated: A

Cardano (ADA) has stated recently that their goal is to become the next coin to be listed on Coinbase. According to them, the announcement from Coinbase which will confirm this is about to come soon.

The Economic Impact Of Smart Ledgers On World Trade (CryptoRecorder), Rated: AAA

In line with Cardano (ADA)’s goals of providing the structural highways for supporting and facilitating international trade and leveraging developing countries in the process, the Cardano Foundation has sponsored a research paper (authored by The Centre for Economics and Business Research, one of the UK’s leading economic consultancies and published in early April 2018) that examines the overall potential impacts of smart ledger technologies on world trade.

“The Centre for Economics and Business Research (Cebr), with assistance from The International Association for Contract & Commercial Management (IACCM) and Z/Yen, have estimated the potential impact as anything from a ‘modest’ rise in global trade of 35 billion per annum to perhaps as much as 140 billion. The lower estimate of 35 billion USD may not justify ‘revolutionary’, yet as Cebr notes even this conservative estimate would be associated with 3 to 6 USD more gross domestic product per average global worker in a world where many still earn below 2 USD per day.”

smart ledgers
Source: Long Finance and Cardano Foundation

Read the full report here.

Mastercard: Crypto Card Bans A Factor in Q1 Volume Decline (CoinDesk), Rated: A

Moves by major banks to ban their customers from using their payment cards to buy cryptocurrencies led to a dip in cross-border transaction volume during the first quarter of 2018, Mastercard’s chief financial officer said Wednesday.

Martina Hund-Mejean said that the company’s cross-border payments volume rose 19 percent during the first part of 2018 overall – however, that volume was down 2 percent when compared to the last quarter of 2017 “in part due to the drop [in] crypto wallet funding,” she said, according to an earnings call transcript published by Seeking Alpha.

As the EU Strengthens Cryptocurrency Regulations, the US is Just Getting Started … (Payments Journal), Rated: A

The EU has taken many steps in the last several years to reduce potential funding for terrorist activities and with the implementation of the Fifth Money Laundering Directive (“MLD5”) it has taken another step. MLD5 amends the Fourth Money Laundering Directive (“MLD4”) to include Cryptocurrency exchanges and custodian wallet providers.

The US is moving in the same general direction as the EU, but is only just beginning get public attention and is currently regulated under numerous laws including the SEC, Fincen, the Bank Secrecy Act and Anti-Money Laundering regulations to name a few.

Four of the world’s largest automakers want to bring the ‘blockchain’ to your car (CNBC), Rated: A

Four of the world’s largest automakers are part of a new group working to bring blockchain technology, which underpins bitcoin and other cryptocurrencies, to your car.

BMW, Ford, Renault and General Motors are among the 30 companies in the Mobility Open Blockchain Initiative. Founding members also include IBM, Bosch and Blockchain at Berkeley, MOBI said Wednesday.

EEA Releases Standardized Architecture Stack For Privacy-Focused Web Apps On Ethereum (CoinTelegraph), Rated: B

The Enterprise Ethereum Alliance (EEA) has released their Enterprise Ethereum Architecture Stack (EEAS) today, May 2. The new software stack standardizes the specifications for Ethereum-based business applications for the Web 3.0 era.

European Union

IOTA Starts Month Strong, Climbs 25% In First Two Day (Forbes), Rated: AAA

The IOTA token, which powers a blockless distributed ledger called the Tangle, reached $2.31 today, according to CoinMarketCap.

At this price, it was up more than 25% from the beginning of May, additional CoinMarketCap figures show.

People in Sweden barely use cash — and that’s sounding alarm bells for the country’s central bank (CNBC), Rated: A

It’s already considered to be the most cashless society in the world. More Swedes have access to a payment card than to cash, according to data from the country’s central bank, the Riksbank. And the overwhelming majority of the nation — 85 percent — have access to online banking.

Just 2 percent of the total value of transactions in Sweden consist of cash, and this is expected to decline to less than half a percent by 2020, according to research by Capgemini and BNP Paribas.

Aerospace suppliers look to blockchain for parts tracking (Yahoo! Finance), Rated: A

Aerospace suppliers are starting to explore blockchain technology to keep tabs on their supply chain, potentially tracking parts such as those identified as the cause of a Southwest Airlines accident last month.

Moog, a U.S. manufacturer of flight control systems, is working with partners to create a blockchain-based solution called VeriPart, which will initially be used to track 3D printed components.

United Kingdom

Telegram cancels its much-hyped initial coin offering (The Verge), Rated: AAA

Secure messaging service Telegram is canceling its initial coin offering (ICO), an anonymous source told The Wall Street Journal today, and it won’t be opening up its digital coins for public sale. The cancellation is a blow to public investors who hoped to get in on the ground floor of one of the largest cryptocurrency investment opportunities in history, with an estimated $1.7 billion already raised.

Telegram is scuttling its public ICO. Here’s why. (recode), Rated: A

One reason why this makes sense:

  • Telegram doesn’t need the money, and likely doesn’t want the scrutiny. Telegram’s CEO, Pavel Durov, only initially secured $850 million from a global base of investors early in 2018 — from some established venture capital firms like Benchmark and Sequoia Capital. But then Telegram collected a second tranche of $850 million in what has to be one of the quickest fundraising events in tech.

But here’s one big reason why this doesn’t make sense:

  • Telegram, like other social messaging companies, claims to be on a mission to connect the world. And initial coin offerings as a concept claim to offer more and more everyday people the chance to financially support and profit off a good idea. That’s not happening here: Only people who qualify as “accredited investors” — the wealthy, the well-connected institutions — are eligible to buy into the Telegram ICO at a discount.

Blockchain insiders tell us why we don’t need blockchain (Financial Times), Rated: AAA

Yesterday, a panel of blockchain experts gave evidence on the technology to the British Parliament’s Treasury Select Committee. The panel included Ryan Zagone, director of regulatory relations (yes, that’s apparently really a job title) at Ripple, the company behind the ultimate leap-of-faith-demanding centralised digital currency, XRP.

Mr Zagone gave the committee the usual spiel about the need for a bridging currency for cross-border payments (which we’ve previously debunked). He also told us that 120 financial institutions had signed up to “the Ripple network”. And then he said:

The banks we see on the network are not using XRP. Right now we’re looking down the road at how they can expand their reach through XRP.

That’s right! No bank is using the digital currency designed for banks. That doesn’t stop it currently being assigned a market value of $32.5bn (more than Twitter’s market capitalisation).

Here’s How Ripple Faced Up to Questioning at a UK Parliament Blockchain Hearing (CCN), Rated: A

Zagone clarified the last statement by pointing out that smaller businesses had difficulty keeping up with the complex 4-day payment cycle, and instead of expanding internationally focused on their domestic efforts instead due to the difficulty of making cross-border payments. He describes Ripple’s first products as solutions to this problem, allowing banks to do real-time payments that take four seconds instead of four days and including real-time tracking with the fee outlined up front, seemingly a vast improvement over the current system.


BeatCoin Shows How To Steal Private Keys For Cold-Storage Crypto Wallet (Bitcoin Exchange Guide), Rated: A

Most experts encourage protection of cryptocurrency wallets through storing them in Air-gapped networks. Air-gapped networks are software wallets that are stored on an air-gapped PC, making it more secure when compared to hot wallets that are always online. The PC is not connected to any other device in order prevents sensitive data from leaking.

However, how secure are they? A group of Israeli researchers from Israel’s Ben Gurion University led by Dr. Mordechai Guri has just proven that cold storage of cryptocurrency wallets is not as secure as we might have thought.

Cambridge Analytica Commence Insolvency Proceedings (CA Commercial), Rated: A

Earlier today, SCL Elections Ltd., as well as certain of its and Cambridge Analytica LLC’s U.K. affiliates (collectively, the “Company” or “Cambridge Analytica”) filed applications to commence insolvency proceedings in the U.K.  The Company is immediately ceasing all operations and the boards have applied to appoint insolvency practitioners Crowe Clark Whitehill LLP to act as the independent administrator for Cambridge Analytica.

Additionally, parallel bankruptcy proceedings will soon be commenced on behalf of Cambridge Analytica LLC and certain of the Company’s U.S. affiliates in the United States Bankruptcy Court for the Southern District of New York.

Talenthon, a UK Based Start-up Selected as the Best ICO to Invest in for 2018 (PR Newswire), Rated: B

There are thousands of Initial Coin Offerings (ICOs) on the market today but only a few would get the public trust. According to CoinTelegraph, Talenthon, a UK based Recruitment Platform, is the best ICO project for 2018 and is undoubtedly the ultimate ICO to invest in this year.

On A Budget? Try These Top Five Cryptocurrencies (CryptoDaily), Rated: B

Cardano, at the time of writing, Cardano is valued at $0.356, coming in way below the budget threshold of $1.00.

Next up is Zilliqa, at the time of writing Zilliqa is valued at $0.104 so again, way below the $1.00 threshold.

In third place, is Power Ledger, at the time of writing, Power Ledger is valued at $0.564 so therefore could be a seen as slightly more expensive than the previous two coins. Either way, it still balances way below the $1.00 budget mark.

In forth place, we have Achain, at the time of writing Achain is valued at $0.381 so again, this falls well below the $1.00 budget mark.

Finally, Quantstamp. At the time of writing, Quantstamp is valued at $0.213.


Binance beats Twitter’s profit by $ 89M – The Element Group (AMBCrypto), Rated: AAA

According to various sources, Binance is 3 times more profitable than Twitter as seen in the first quarter of 2018. Binance has not yet announced their profits publicly for this year yet, but the market analysts put up some rough figures from the Binance Coin [BNB] burn that happened recently. 2.2 million ($30 M) worth Binance Coin was burnt on 15th  April 2018, which defines Binance’s profit to be somewhere near $150 million, according to the statistics.

The Element group tweeted this earlier today:

binance twitter
Source: AMBCrypto

Cryptocurrency Exchange Binance.com Lists Loom Network (ABN Newswire), Rated: A

Cryptocurrency Exchange Binance.com (CRYPTO:BNB) advise that LOOM/BNB (CRYPTO:LOOM), LOOM/BTC and LOOM/ETH trading pairs are now available on Binance for trading. You can start depositing and trading LOOM now.


Historic Korean Peace Declaration Recorded on Ethereum Blockchain (CoinDesk), Rated: AAA

The historic moment when leaders from South and North Korea met on April 27 and signed an agreement for peace between the two nations has now been permanently recorded on the ethereum blockchain.

According to a report from CoinDesk Korea, Ryu Gi-hyeok, a 27-year-old game developer from South Korea, has coded the Panmunjom Declaration, which includes the line “there will be no more war on the Korean peninsula,” in both Korean and English and stored both versions in two ethereum transactions.

Bank of Korea to Announce Guidelines on Cryptocurrencies by June, Hints At Central Bank Digital Currency (Coin Journal), Rated: A

The Bank of Korea (BoK) has announced that it is planning to reveal its guidelines on cryptocurrencies before the summer is out. A plan on a possible central bank-issued digital currency will also feature, according to a report.

Blocnation to Launch World’s First Decentralized Initial Coin Offering (Coinspeaker), Rated: A

The future of digital payment processing is just days away as Blocnation prepares for the launch the world’s first decentralized Initial Coin Offering (dICO) on April 17th. Operating on its own blockchain built with the Komodo Platform, the Blocnation token (BNTN) will be used to unlock cryptocurrency-payment capabilities across PouchNATION events and venues and provide payment solutions for those unserved by traditional finance.

Gujarat Bitcoin Extortion Case: The Story Goes Way Deeper (Crypto-News), Rated: A

Last month, a high-profile abduction and bitcoin extortion case from Surat, made the rounds when it emerged that most of the accused involved were policemen.

Apparently, this was not an isolated case. Given the priority of the case, it was taken over by the Crime Investigation Department (CID). The CID is now investigating, how Shailesh Bhatt, the Surat-based businessman came into the possession of the bitcoins. The abduction that took place in February this year is tied to an earlier case of kidnap and extortion of bitcoins that happened sometime in 2017.

Binance Bounce for “Ethereum Saver” Loom Token as Price Surges 30% (ICO Examiner), Rated: B

The Loom Network token has jumped 30% in the ten hours following its listing on the world’s leading cryptocurrency exchange, Binance.

Two held over illegal business of digital currency (The News), Rated: B

Cyber Crime Circle of FIA on Wednesday arrested two people Ahmed Butt and Malik Irfan over the charges of running an illegal business of digital currency.

The team unearthed the racket operating in the name of First Coin, One Coin, Eagle Bit and Euro Coin.


Crypto Exchange Coinmama Starts Bitcoin Cash, Litecoin & Cardano Support (Bitcoin Exchange Guide), Rated: AAA

Coinmama, a financial service that allows individuals to purchase Bitcoin (BTC) and Ethereum (ETH) packages, has recently announced that it will also support other cryptocurrencies including Litecoin (LTC), Cardano (ADA) and Bitcoin Cash (BCH).


Bank of Canada paper offers advice on digital currency policy (Central Banking), Rated: AAA

Researchers at the Bank of Canada have proposed a framework for evaluating the costs and benefits of new forms of money, including the possibility of issuing a central bank digital currency (CBDC).


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