Daily News Digest Featured News

Wednesday June 6 2018, Daily News Digest

Source: CryptoRecorder

News Comments

United States


European Union



News Summary

United States

Judge Reopens Cryptsy Customer Class Action Against Coinbase (CoinDesk), Rated: AAA

A judge in the U.S. District Court for the Southern District of Florida has reopened a case involving cryptocurrency startup Coinbase and the now-defunct exchange service Cryptsy.

Read the motion to re-open here.

How This Cryptocurrency Innovation Will Transform Traditional Investment Offerings (Entrepreneur), Rated: AAA

Combining ERC20 compatibility with the SEC’s blessing to act as a legal brokerage, Coinbase would be in a position to offer tokenized securities to more than 10 million users on their platform.

Meanwhile, companies such as TemplumOpenFinance NetworkSharespost and the Gibraltar Stock Exchange have been working diligently to build bulletproof platforms for the issuance and secondary trading of security tokens. Even Nasdaqrecently stated that they wouldn’t be opposed to becoming a crypto exchange.

How Bittrex Does Crypto-to-Fiat Trades When Other Cryptocurrency Exchanges Can’t (CCN), Rated: AAA

“For us, it is primarily about innovation. That’s what we are excited about. We have a very rigorous review process to go ahead and find the most innovative blockchain projects out there in the world. And a part of that process is not just making sure that the technology and the business models are innovative, we also look at the founders and principles behind the project,” Shihara said.

Shihara added that Bittrex works closely with every project listed on the platform and their lawyers alongside third party or independent law firms to prevent any potential regulatory conflict in the future between investors and local financial authorities.

Currently, Shihara explained that BIttrex is directly working with US banks to process deposits and withdrawals and once the system is successfully tested, Bittrex will expand to many markets.

Request Highlights Need For More Tax Guidance On Cryptocurrency (Forbes), Rated: A

Finding yourself confused about the tax treatment of virtual currency? You’re not alone. The perplexing and often onerous tax rules have not been simplified (or clarified), even as the numbers of investors and available virtual currencies have exploded. The last time that the Internal Revenue Service (IRS) issued specific guidance on the tax treatment of virtual currency to taxpayers was on March 25, 2014, at a time when about $14,020,100 worth of Bitcoin was trading at around $585. As of this writing, volume share is approximately $4,631,500,000 trading at around $7,500 a pop. And that’s just bitcoin (BTC). It doesn’t include other virtual currencies like Ripple or Ethereum.

Read the 2014 tax guidance here.

Cryptos stage rally as bitcoin volatility gauge touches 1-year low (MarketWatch), Rated: AAA

Major digital currencies erased declines and were trading higher in early afternoon Tuesday action.

The 30-day bitcoin volatility index, which tracks the standard deviation of returns for the past one -month and two month periods, recently put in a one-year low, trading at 2.77%, the lowest level since May 2017 and is down from 8.02% since the beginning of 2018, according to the Bitcoin Worldwide Index.

Bitcoin volatility index
Source: Bitcoin Worldwide and MarketWatch

Failed Breakout Revives Bitcoin’s Bull-Bear Tug-of-War (CoinDesk), Rated: A

Bitcoin’s retreat from Sunday’s high of $7,779 has poured cold water over the bull mood generated by the weekend’s positive price action and neutralized the immediate outlook.

However, bitcoin suffered a rising wedge breakdown (bearish pattern) in the U.S. hours on Monday, signaling that the corrective rally from the recent low of $7,040 had ended.

At press time, the cryptocurrency is changing hands at a four-day low of $7,426 on Bitfinex, down 2.5 percent over 24 hours.

bitcoin daily
Source: CoinDesk

Lowering Year-End Bitcoin Price Estimate To $ 12,500 Due To Weaker Transaction Volume Outlook (Forbes), Rated: A

Bitcoin prices saw a sharp decline over the month of May – falling from nearly $10,000 at the beginning of the month to a low of almost $7,100. Although the cryptocurrency reversed some of its losses over the last few days of the month, there has been a notable reduction in total transaction volume across exchanges. Adjusting our forecast for transaction volumes in our interactive Bitcoin Price Estimator now leads to a year-end price target of around $12,500 – down from our earlier estimate of $15,000.

bitcoin price speculation
Source: Forbes and Trefis

Magic Number? Chart Data Hints at June 6 Bitcoin Boost (CoinDesk), Rated: A

A major reprieve just may be in the offing for the battered bitcoin bulls in the next 36 hours – if, that is, historical patterns repeat themselves.

Intriguingly, the cryptocurrency tends to take a significant change of direction on the sixth day of every month, or at least it has so far in 2018.

BTC June 6
Source: CoinDesk

The above chart (prices as per Bitfinex) shows:

  • Bitcoin bottomed out or turned higher from $6,000 on Feb. 6 and $6,500 on April 6.
  • The lower highs – $11,700 and $9,990 – were created on March 5 and May 5, respectively.
  • The yearly high of $17,252 was also set on Jan. 6.


For many early cryptocurrency adopters, bitcoin has been the most innovative financial advancement since gold coinage. On the other hand, traditional investors like Warren Buffett see bitcoin as a highly speculative asset that is poisonous. But for many business owners, bitcoin can be the beginning of a financial evolution that can redefine your growth potential.

Bitcoin (BTC), Litecoin (LTC) and EOS Price Analysis: EOS leads recovery, up over 4% on the day (CryptoRecorder), Rated: AAA

Bitcoin price is rising within a descending channel while the intraday upside movements have been capped below $7,500. The largest virtual asset by market capitalization is trading marginally above $7,450. Similarly, it is up a subtle 1% on Tuesday.

That aside, if Bitcoin breaks above the short-term resistance at $7,500, the upside will be limited by the bearish trendline as observed on the chart. The 100 SMA will also hinder movements slightly below $7,600. The breakout for BTC/USD is at $7,600, which will pave the way for retracements heading to $7,700, before attacking the psychological $8,000.

Source: CryptoRecorder

Litecoin (LTC) Price Analysis

Litecoin price has approached the breakout at $18.00 and there is a bullish trend in progress. LTC/USD is testing the short-term resistance at the 50% Fib retracement level with last swing high of $127 and a low of $110.5. The price is still trading below the ascending trendline, however, indicators are pointing towards a short-term breakout.

Source: CryptoRecorder

EOS price analysis

Eos price is one of the biggest gainers on the day surging by over 4%. The crypto has breached the resistance from the 38.2% Fib retracement level with the last high leg at $15.1 and a low of $11.87. The buyers are pushing the price towards the breakout position at $15.00 but first, they must overcome the resistance at $14.50.

Source: CryptoRecorder

Litecoin Adoption Spreading, Surf Air Is the Latest (Blokt), Rated: A

Charlie Lee’s digital currency was in the spotlight throughout May. After partnering with Abra and Bookmaker, Litecoin is now usable at VRPorn, TapJets and Surf Air.

Ripple CEO says ‘dozens’ of banks will use its cryptocurrency product in 2019 (CNBC), Rated: A

Ripple will have “dozens” of banks using its blockchain product that requires a digital currency known as XRP to work, the start-up’s CEO told CNBC on Tuesday.

Ripple Brings Former SEC Heavy Hitters to its Defence Team (cryptovest), Rated: B

As Ripple’s court date approaches, the company has decided to go beyond the usual lawyers and brought former SEC chairwoman Mary Jo White and Andrew Ceresney—her enforcement chief—into its defense team.

This decision came after a lawsuit was filed against the company from a jilted investor who argued that XRP functions much like a security.

Decred Seeking to Create Binance and EtherDelta Hybrid as New Exchange Model (ICO Examiner), Rated: A

A proposal published this morning by Jake Yocom-Piatt, one of the project leads behind the Decred cryptocurrency, has outlined the architecture for a new trust-less cryptocurrency exchange platform.

Acknowledging the pain points and frustrations of both existing centralised and decentralised exchanges, Yocom-Piatt is proposing a client-server model for hosting currency pairs with servers then integrating P2P atomic swap nodes to ensure users retain control of funds at all times.

The Real Reason Token Issuers Are Fleeing the US (CoinDesk), Rated: A

Recognizing that this shift to a new Decentralized Era is underway, numerous countries are positioning themselves at the forefront of this transition so as to reap the economic, financial and geopolitical benefits that come with being the go-to jurisdiction for global capital formation.

Unfortunately, the United States is not yet among these countries, as it has instead taken a short-sighted and enforcement-heavy approach that fails to expand beyond Industrial Era thinking.

Former NBA Commissioner Emerges From Retirement To Back Ethereum-Based Cryptocurrency (Forbes), Rated: A

Yet despite issues around the untethered value of various cryptocurrencies, the former NBA commissioner, who is credited with increasing the popularity of the NBA in the 1990s and 2000s, has chosen to back FanChain.

An old Alcoa plant to be converted into the world’s largest bitcoin mining center (CNBC), Rated: A

Despite bitcoin’s price decline this year, a cryptocurrency “mining” company is moving ahead with plans to repurpose a 1,300 acre plot once used by Alcoa for aluminum smelting.

Coinmint said Tuesday it would invest up to $700 million in the upstate New York location, which it expects to be the biggest bitcoin mining center in the world. The project will create an estimated 150 jobs over the next 18 months.

Cryptocurrency Capital Gains And How To Calculate Them (Crypto Briefing), Rated: A

Cryptocurrency capital gains taxes are becoming a point of interest for governments.  In 2017, which will likely come to be known as the year crypto went mainstream, the combined market cap for all cryptocurrencies rocketed up from 15 billion to over 600 billion dollars.  This kind of growth isn’t hard for just the day-traders and blockchain evangelists to ignore, but for governments as well.

Blockchain offers cure for patients’ fragmented medical records (Financial Times), Rated: A

Data is to modern medicine what the microscope was to enlightenment physicians, expanding our understanding of human biology and helping us to more skilfully heal the sick. Its biggest drawback is fragmentation.

Hospitals, general practitioners and specialist clinics all use different electronic records systems, giving each one an incomplete visibility into a patient’s health history or treatment record. Blockchain has emerged as a possible solution to this problem.

Distributed ledger technologies, such as the ones that underpin cryptocurrencies like bitcoin, have no inherent connection to money. They offer a way of decentralising information without compromising integrity and security.

High potential, remaining obstacles in blockchain for social impact (ImpactAlpha), Rated: A

ConsenSys, the Brooklyn startup behind the Ethereum blockchain platform, and PeaceTech Lab convened in Washington, D.C. to debate the potential for blockchain applications to improve everything from delivery of refugee aid to supply chain transparency to media credential verification to impact reporting. Here’s the video stream.

Blockchain Hype Reaches YouTube Space (Forbes), Rated: A

When it comes to YouTube, the blockchain hype has hit hard. There are at least 11 blockchain startups (probably more but I gave up looking because *snore*) vying for viability and the chance to take on YouTube as the decentralized, peer-to-peer competitor online content creators so desperately want and deserve.

POPchest, relaunching this month, “hopes to empower creators with more opportunities to gain distribution, viewers, and earn just compensation.”

POPchest joins the ranks of DECENT GO,  Flixxo, Lino, SLATE, StreamSpace, STREAM, Steemit.com, The 21million project, verasity and Viuly, to name more than a few.

Digital Currency Platform Dash Hires New CTO Bob Carroll to Lead Product Development (Crowdfund Insider), Rated: B

Dash, a digital currency for payments, has added IT industry veteran Bob Carroll as the new Dash Core Group Chief Technology Officer.  As CTO, Carroll will be in charge of leading the continued development of the Dash network and its products, including the development and launch of Dash’s Evolution payments platform.

DNotes 2.0 Now Listed on Stocks.Exchange (PR Newswire), Rated: B

DNotes Global, Inc. has announced that its DNotes digital currency is now listed for trading on stocks.exchange. The recently upgraded version of DNotes will join major cryptocurrencies like Bitcoin, Ether, and Litecoin, as well as a host of altcoins that are actively traded on the exchange.

Lawmaker Wants New York State to Pilot Local Cryptocurrencies (CoinDesk), Rated: B

Bill A11018, if passed, would amend the New York urban development corporation act to launch 10 pilot programs creating local community currencies, which could be cryptocurrencies or other forms of alternative digital forms of money, according to public documents. The programs would hopefully encourage residents of a particular community to spend locally, thereby supporting their neighborhood ecosystems.

Md. commission considers case for regulating cryptocurrencies (The Daily Record), Rated: B

Maryland will have to consider how its current laws interact with the new and occasionally wild frontier of cryptocurrencies and blockchain technologies, a state commission was told Tuesday. More than 200 cryptocurrency exchanges operate within the United States and there have been more than 3,400 initial coin offerings to date.

You can use Bitcoin and other cryptocurrencies to buy or sell a home; here’s what to know (The Denver Channel), Rated: B

Given a median home price in metro Denver of $420,000, one would need a little more than 55 Bitcoins in order to buy the typical home today.


Bitcoin vs Ethereum from the Trader’s Point of View (Use the Bitcoin), Rated: AAA

Bitcoin (BTC) and Ethereum (ETH) are the two most important cryptocurrencies according to their market capitalization. Indeed, both of them account for 55% of the total cryptocurrency market, which is quite impressing considering the number of ICOs and projects out there that are competing with these virtual currencies.

According to Blockium’s traders’ statistics, during the last week, 4.84% of the respondents shorted bitcoin, while 3.96% did so with Ethereum. At the same time 42.7% of the individuals that answered were holding BTC during the last 10 trading tournaments while 63.96% held Ethereum.

A study  created by Blockium analyze both cryptocurrencies from the trader’s point of view:

Bitcoin vs. Ethereum
Source: Use the Bitcoin

Crypto Whales Own Almost Half of the Tokens From the Biggest Ever ICO (Bloomberg), Rated: AAA

Beware of the EOS whales.

The top 10 holders of the digital tokens from the largest initial coin offering ever own nearly 50 percent of the coins, according to tracking service Etherscan. Block.one, the private company behind the project that completed the more than $4 billion offering last week, is the biggest holder, with 10 percent of the total. The names of the other large holders are anonymous and could be individuals or even exchanges.

Arabian Business Podcast: Cryptocurrencies – from Wild West to widespread adoption (Arabian Business), Rated: A

So, where are we right now? The signs, according to Gary Sheynkman, a crypto economics expert with Dubai-based Leyden Ventures, remain positive, with greater adoption, more institutional investment and greater central bank enthusiasm for the possibilities of cryptocurrencies – even if that means their original utopian purpose becomes a dim memory.

Listen to the podcast here.

How Blockchain Makes It Easy for Diverse Platforms to Interface (BlockchainNews), Rated: A

With centralized systems, players often have to basically collect their own data, either because those who have the same data can’t trust them or the authenticity of the data is questionable.

Consumers essentially have no say as to how their data is used once it is stored in third-party-owned servers. And when it is moved from one platform to another, little guarantee exists that its authenticity is maintained.

European Union

Binance Exchange Adds SingularityNET To Trading Platform (Bitcoin Exchange Guide), Rated: AAA

The most used platform in all of cryptocurrency exchanges is Binance – so getting your coin/crypto-asset listed there is a pretty big deal if you want more trading volume and interested investors and users to have direct access to your project and tokens.

And now that has become a reality for SingularityNET (AGI Token) who just got a big boost by being included in Binance’s cryptocurrency trading exchange platform today.

Binance teams up with ChiliZ for tokenization of sports industries (CoinGeek), Rated: A

Malta-based ChiliZ announced that it has received a sizeable investment from cryptocurrency exchange Binance for its new tokenization platform. ChiliZ’s platform was created specifically for the eSports and sports industries, and allows entities within the segments to tokenize their voting rights to fan bases.

Binance Lists Nexus (NXS), Here’s Why It’s a Unique Digital Asset (cryptovest), Rated B

Binance has listed Nexus (NXS), one of the older, minable coins, which launched back in 2018. Over the years, NXS rose from sub-penny positions, to a peak above $12, but later crashed to the current levels.

The news of the Binance listing boosted NXS to $2.6, adding more than 18% overnight. NXS volumes remain extremely low, and the activity on Binance might give the coin a boost.

Testing for Ethereum’s Coming Consensus Change Is Moving Ahead (CoinDesk), Rated: AAA

A hotly anticipated change aimed at ridding ethereum of its bitcoin-inspired mining process is moving forward in testing, with the platform’s popular software clients now participating in review.

Following on an April software release that saw the idea formalized in code, the upgrade looks to transition the world’s second largest blockchain into a new way to keep those running its software in sync. However, the current iteration of the idea (called Casper FFG) finds ethereum’s developers proceeding with a plan that would enable both its new and old consensus algorithms to work together to protect the network from unexpected attack vectors that may arise during the transition.

Under the proposal, smart contracts will link miners that secure the network with a new set of participants called “validators.”

Payments Race Shows How Far The Likes Of Bitcoin And Ripple Have To Go (Forbes), Rated: AAA

Cash has been dying for a long time, according to some. It’s probably died more times than Bitcoin, over the years.

The Money20/20 Europe Payments Race — something the conference has done in other parts of the world with significantly different results — pitted Team Cash, Team Card, Team Crypto, Team Wearables (using a Curve Ring and Apple Watch), and Team Mobile against each other to find the fastest route from Istanbul to Amsterdam.

In the end, the results were:

  • (Joint) 1st – Team Cash / Team Card
  • 3rd – Team Wearables
  • 4th – Team Crypto
  • 5th – Team Mobile

Last year the European Central Bank (ECB) said there were some 804 million payment cards in the European Union in 2016, representing around 1.6 payment cards per EU inhabitant, as well as around 54 billion transactions processed by retail payment systems that year, totalling €41.8 trillion ($48.7 trillion).

Slovenia Plays Host to the World’s First “Bitcoin City” (Bitcoin Magazine), Rated: A

Slovenia has announced that its largest shopping center — coincidentally known as BTC City — will transform into a complete bitcoin city, in which every store and venture will accept cryptocurrency and operate via blockchain technology.

Belgian Government Launches Site to Warn Crypto Investors About Scams (CoinDesk), Rated: A

Belgium’s government is backing a website that seeks to warn cryptocurrency investors about the signs of potential fraud.

The new site, entitled “Too Good to Be True,” is run in part by the Belgian Federal Public Service Economy and the Financial Services and Markets Authority. Saying crypto assets “are the hype of the year,” the site warns that because they are extremely easy to develop, these tokens may be used for illegitimate purposes, including “scams, drug trafficking, terrorism or any other criminal activity.”

A Book ICO? Publica Will Make That Happen (Altcoin Buzz), Rated: A

Have you ever wanted to write a novel but were afraid to be turned down by a fussy publisher? Or maybe you are tired of paying extra money to Amazon for selling you the piece you love? Well Publica, an upstart blockchain publisher, is about to revolutionize the whole concept of publishing and book distribution. And tomorrow it will launch an ICO which will allow Matthew Kepnes, a.k.a Nomadic Matt ,to pre-sell his travel guide “Backpacker’s Guide to Europe” on an Ethereum-based platform.

Denmark Joins EU Blockchain Partnership, Plans to Implement Tech in Shipping (Coin Telegraph), Rated: B

Denmark has signed a declaration to join a total of 24 European Unionmember states that support pan-EU blockchain standards and solutions, local news outlet Finans Watch reported June 4.

The EU blockchain partnership was formed on April 10 as part of the European Commission’s Digital Day with the intention of enhancing cooperation among member states for developing blockchain tech.

ZAP Launches Ethereum API on Zap.tech (PR Newswire), Rated: B

Zap.org, a platform that empowers smart contracts with data, today announces the alpha release of its Ethereum API, developer bug bounties, and technical docs on Zap.tech — leading up to the rolling release of an SDK for bootstrapping data-driven services.

United Kingdom

ThinkCoin Partners with GMEX Group to Develop “Multi Asset Exchange” (Crowdfund Insider), Rated: AAA

ThinkCoin has entered into a partnership with GMEX Group, a crypto exchange and post-trade solutions platform. ThinkCoin is in the midst of an initial coin offering (ICO) with a hard cap of $30 million.

The six things you need to consider before launching an ICO (Elite Business Magazine), Rated: A

  1. Make Plans
  2. Convey your story
  3. Build a community
  4. Pay for promotion
  5. Get out there
  6. List, list, list
China/Hong Kong

Cryptocurrency Exchange Bitfinex Resumes Services Following Cyberattack (NewsBTC), Rated: AAA

A Hong Kong-based cyptocurrency exchange briefly halted its services today due to a cyberattack, causing the platform to be under an extreme load.

In the case of Bitfinex, it appears that the DDoS attack occurred after it relaunched the platform, according to its website.

Chinese Central Bank Develops Blockchain System to Digitize Paper Checks (Coin Telegraph), Rated: A

The People’s Bank of China (PBoC) has revealed a blockchain-powered system to digitize paper checks, local media Financial News reports June 5. The system aims combat financial fraud as well as reduce expenses for printing checks.


Getting Into Japanese Market Won’t Be Easy For Coinbase (Coin Telegraph), Rated: AAA

Indeed, Coinbase has been obedient with US regulatory bodies. For instance, in January 2017, the company obtained a BitLicense to operate legally in New York, and notified approximately 13,000 of its customers that it was turning their information over to the IRS in February. However, Coinbase has also been critical of US regulation. In March, the company voiced its concerns regarding the patchy state of regulation in the US and how it is “chilling” the market.

Japanese market and the FSA pressure

Japan is arguably the world’s largest market for cryptocurrencies. According to Japan’s FSA, the country’s major regulatory body gathered data from 17 local cryptocurrency exchanges and found that as of the end of March 2018, there were at least 3.5 million crypto traders. Various trusted Bitcoin market data providers, such as CryptoCompare, show that the Japanese’ Yen accounts for about 55% of global Bitcoin trades at the time of reporting, and local reports show that 14 percent оf country’s young male workforce has invested in cryptocurrencies.

Foreign players move in

While Coinbase plans to establish their operation in Japan “within the year,” the Japanese arm of the internet giant Yahoo! will reportedly open their own exchange “in April 2019 or later,” albeit through buying 40% of BitARG Exchange Tokyo instead of creating a new outlet.

India: Multi-Million Cryptocurrency Scam Busted After Investors Alert Police (CCN), Rated: A

The crime branch of India’s financial capital busted a multi-million cryptocurrency scam on June 5, 2018.

Operating under the guise of a real estate company since 2016, The Flintstone group sold a lifestyle of Carribean homes and promised citizenships in African countries to disgruntled investors on the pretext of letting them in on a “soon-to-be-legal” cryptocurrency – the MoneyTradeCoin (MTC).

OJK Asserts Cryptocurrencies, Bitcoins Barred for Trade (Tempo.co), Rated: B

Financial Service Authority (OJK) board of commissioner chairman Wimboh Santoso asserted that the financial industry is barred from actively participating in cryptocurrency transactions such as Bitcoin.


Waves and TMT Blockchain Fund Team Up For Crypto Investment Fund (Bitcoin Exchange Guide), Rated: AAA

TMT Blockchain Fund has announced this week that they are partnering with the Waves Platform. The partnership is with the intention of developing a major infrastructure project.


Digital currency good for Kenya – Ndemo (The Star), Rated: AAA

A digital asset registry would require small businesses to key in all their images, logos, video’s, websites and text stored online to be used a portfolio for interested parties looking to invest in their business.

“Blockchain mitigates trust. What has been lacking is that government did not have an infrastructure to ensure trust in Blockchain technology,” said the teams chairman Bitange Ndemo.

Ndemo said once a trusted registry is established small enterprises would have an alternative source of funding other than banks.

The Reserve Bank says its Project Khokha was a success (Business Insider), Rated: A

The Reserve Bank ran a large test of distributed ledger technology involving seven banks. The results were good, the bank says, and as a test, Project Khokha was a great success. But it is not yet time for interbank use of the kind of blockchain technology underpinning bitcoin.


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