Daily News Digest Featured News

Tuesday June 19 2018, Daily News Digest

money flower
Source: Taxonomy of money

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United States

International

European Union

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News Summary

United States

Coinbase exec: ‘Adding more assets is a very big priority for us’ (Yahoo!), Rated: AAA

Coinbase announced last week its intention to add the cryptocurrency ethereum classic to its exchange. It will be the fifth cryptocurrency added to the site. And based on comments by two Coinbase executives at Yahoo Finance’s All Markets Summit: Crypto in San Francisco last week, Coinbase customers can expect more assets very soon.

Coinbase Estimating $ 20 Billion Crypto Custody Influx (Crypto Coin Spy), Rated: A

Per their reports, a spokesperson for Coinbase Inc. – one of the largest crypto-related companies in the industry – “expects to win approval soon to serve clients requiring a so-called qualified custodian that meets tough U.S. standards for guarding assets.”

Commenting on the financial influx that Coinbase’s custodial service is expecting to attract, once finalized, Sam McIngvale (Product Lead, Custody, Coinbase) went on the record forecasting “about $20 billion in crypto assets.”

Pantera’s 19-Year-Old Whiz Kid Hired by Coinbase Founder’s Fund (Bloomberg), Rated: A

Charles Noyes, an Orange County, California, native who left high school early in 2016 to attend Massachusetts Institute of Technology, is exiting his job at crypto hedge fund Pantera Capital to help two finance titans start a digital-currency fund. He’ll be a partner alongside Fred Ehrsam, co-founder of crypto exchange Coinbase Inc., and Matt Huang, a former partner at venture-capital firm Sequoia Capital, which will be an investor in the new company.

Bitcoin & Litecoin Technical Outlook Continues to Point to Lower Prices (Daily FX), Rated: AAA

Bitcoin not long ago broke a key trend-line running back to February and is now flirting with breaking the low created back then. The 5920 level is considered quite important given it ended the initial plunge off the record high – it was the decline which marked the beginning of the end.

A drop below 5920 could spark acceleration in selling, but as we’ve seen volatility is slowly dying along with the market’s zeal for cryptocurrencies. Acceleration may or may not happen with that said, but breaking below 5920 will still be an important event.

Bitcoin Litecoin
Source: Daily FX

LIFE FOR LITECOIN IS TOUGH UNDER 100
Litecoin declining below 102 was important, it is the comparable level to 5920 on the Bitcoin chart. Then came the psychological level of 100. Right now, price action is weak beneath these key levels and set to continue to weaken.

Litecoin
Source: Daily FX

Your Guide On Bitcoin’s Lightning Network: The Opportunities And The Issues (Forbes), Rated: A

Bitcoin has been around long enough that cycles in the market are starting to emerge.

We saw the same spike in interest occur in 2013. Tons of new Bitcoin applications came out, including my company Bitwage. Bitcoin copy-cats, called altcoins, appeared in droves, and enterprises began to obsess about Blockchain. The Blockchain Warsbetween permissioned and permissionless chain have been going on since 2015.

So what is actually new this time around? If you are a developer or an entrepreneur, where do the new opportunities lie? Today, above and beyond all else, you need to examine the Lightning Network, and decide what it means for your plans.

Why the SEC’s View of Bitcoin Is Bad News for Investors (The Motley Fool), Rated: A

Earlier this week, the SEC’s William Hinman spoke at a summit on cryptocurrencies. Addressing the question of regulation of digital assets, the director of the SEC’s Division of Corporation Finance made an interesting assertion that advocates for crypto tokens took as potentially opening the door to a new groundswell of support for the crypto market. Yet the statement raises major questions for investors, seemingly creating a distinction that will be almost impossible to define in exact terms.

Hinman’s talk centered on the idea of whether digital assets could ever not be considered a security subject to regulation. Under the framework that the SEC administrator laid out, just about every initial coin offering would potentially involve the need for securities regulation, because in his view, the fact that a central business entity was engaged in the ICO and that the token being offered would effectively give the buyer a business interest in that entity was enough to make securities laws apply.

Yet Hinman opened the door to the idea that at some point that situation might change.

Bitcoin jumps after New York approves Square’s Cash app for crypto trading (CNBC), Rated: A

The largest cryptocurrency by market capitalization gained more than 4.5 percent to $6,793, its highest since Tuesday, according to CoinDesk’s bitcoin price index. Bitcoin was trading near $6,694 as of 3:56 p.m. ET.

Cash is owned by Square and has 7 million monthly active users, the company said in its first quarter earnings call. On Monday, New York’s Department of Financial Services granted Square a virtual currency license, allowing users of the Cash app in the state to trade bitcoin. Bitcoin trading launched for most Cash users in late January.

Square jumps after receiving New York virtual-currency license (PaymentsSource), Rated: A

Square Inc. shares climbed to their highest price ever after New York granted the company a virtual-currency license, letting customers in the state buy and sell Bitcoin.

Q&A with Rune Christensen, Founder of MakerDAO (cryptovest), Rated: A

We are excited about the launch of multi-collateral Dai. This will increase stability, allowing for expanded use cases for Dai. Right now, you can obtain Dai by using ether as collateral in creating a CDP. We are moving towards expanded options for collateral, which will be determined through the votes of MKR holders.

CV: Tell me a bit about the Dai stablecoin? Is it pegged to the US dollar?  It seems to be similar to a collateralized – derivative contract?

Dai is an asset-backed, hard currency for the 21st century — the first fully-decentralized stablecoin on Ethereum. It’s managed entirely on the blockchain, through an autonomous system of smart contracts, which are specifically designed to respond to market dynamics to ensure that this essential stability property is continuously maintained. Holders of our stability token, MKR, vote and govern decisions such as expanded collateral options for multi-collateral Dai.

Financial reporting, conflict of interest rules for federal employees apply to virtual money, ethics office says (The Washington Post), Rated: A

Virtual money is real enough that federal employees must report it on their financial disclosure statements and is covered by conflict of interest laws, the government’s central ethics agency said Monday.

The Freedom of the Press Foundation now accepts bitcoin cash, ether, and other cryptocurrencies (The Verge), Rated: A

The Freedom of the Press Foundation (FPF) now accepts donations in multiple cryptocurrencies, including bitcoin, bitcoin cash, ether, litecoin, and zcash.

A16z Leads Investors in $ 20 Million ICO for Crypto Assets Platform (CoinDesk), Rated: A

Asset tokenization platform TrustToken just raised $20 million in a strategic token sale with the help of major venture corporations, including Andreessen Horowitz (a16z).

Menlo Park High-End Jewelry Store First In World To Accept Cryptocurrency (CBC Local), Rated: A

Stephen Silver inside the Rosewood Sand Hill Hotel is known for selling rare, ultra-high end jewelry and watches. These days the Menlo Park jeweler is also standing out for doing business in cryptocurrency. It’s the first jewelry store in the world to accept the digital money.

The Cryptomining Craze Largely Skipped Oregon. Why? (Government Technology), Rated: A

Oregon’s electric rates are cheap by national standards but not compared to Washington’s best prices, which are typically lower by 1 cent per kilowatt hour. That doesn’t sound like a lot of money but it is in the world of bitcoin, a digital currency generated by power-hungry computers.

One penny. Or, if you prefer, 0.000001 bitcoin.

Ripple Executive Elected to Lead Federal Reserve Task Force (CryptoSlate), Rated: B

Business Development Head of Research for Ripple Labs, Ryan Zagone, has been elected to the Federal Reserve’s Faster Payments Task Force Steering Committee.

Suspects In $ 2 Million Ethereum Heist Brought To Justice (Crypto Disrupt), Rated: B

When Louis Meza set up his crypto millionaire friend to be robbed last November, New York City prosecutors had no trouble indicting him. However, the three other men who were involved in kidnapping the Ethereum millionaire were able to evade capture, at least until last week.

According to The New York Daily News, three members of a Bronx biker gang have been formally charged in connection to the crime, and if convicted, they could face 25 years in prison.

International

Investors Turn Bullish as Cryptocurrency Market adds Billion 24 Hours (CCN), Rated: AAA

Over the past 24 hours, the cryptocurrency market added $12 billion, as major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash experienced a short-term corrective rally.

The Bitcoin price rebounded from $6,300 to $6,700, breaking a descending trendline since May 3, when BTC achieved $10,000. While it is too early to conclude that BTC has entered into a mid-term rally given that it is still likely for BTC to fall below the $6,000 mark in the short-term, the cryptocurrency market has gained a breathing room from the recent major correction that began in early May.

crypto market
Source: CCN

New Exchange Listings: Siacoin, Cardano, IOTA, Ethereum Classic, and Decred (CryptoSlate), Rated: AAA

Several new top 35 cryptocurrencies received major exchange listings in the past week, including Binance listing Siacoin, Coinbase planning to list Ethereum Classic, Bithumb listing Cardano, Bitpanda listing IOTA, and OKEx listing Decred.

Siacoin, currently ranked #32 by market cap, is up 1.66% over the past 24 hours. SC has a market cap of $454.98M with a 24 hour volume of $14.47M.

SiaCoin

Ethereum Classic, currently ranked #18 by market cap, is up 4.69% over the past 24 hours. ETC has a market cap of $1.54B with a 24 hour volume of $223.62M.

Ethereum Classic

Bithumb Lists Cardano

Announced on June 13, Bithumb exchange will open trading forCardano (ADA) on its public platform. The official listing and public trading launch will occur on June 14.

Bitpanda Lists IOTA

Launched on June 14, European exchange, Bitpanda will list IOTA (MIOTA) on its platform and open trading to the public.

The Real Reason Cryptocurrency Players are Receptive to Funding by Ripple and Binance (CoinFrenzy), Rated: AAA

Startups in the cryptocurrency space are not just after disrupting the status quo, they are aiming at providing venture capital, competing with traditional early-stage investors. Early this month, Binance, the leading cryptocurrency exchange in terms of trade volumes declared that it was setting aside $1 billion in a Social Impact Fund to finance cryptocurrency and blockchain startups.

According to Binance Labs Division Head, Ella Zhang, the company will utilize a flexible approach to help form new funds. To achieve this, Binance plans to engage fund managers who have experience in managing assets valued at more than $100 million.

At the same, Ripple has announced the setting up of a $50 million fund conducting academic research on cryptocurrencies, the blockchain, and digital payments. Through this fund, Ripple will target 17 universities including MIT and the University of North Carolina, Chapel Hill.

Cryptocurrencies like bitcoin cannot replace money, says Bank for International Settlements (ABC), Rated: AAA

The venerable Bank for International Settlements, a 90-year-old institution based in Switzerland, has issued a research report concluding that cryptocurrencies are afflicted with inherent contradictions that make their widespread use as money impossible.

Cryptocurrencies fail the test of stability

There’s no doubt that current cryptocurrencies fail spectacularly on the test of stability.

crypto price instability
Source: ABC.net.au

$57 to buy a cup of coffee

“If you bought a $2 coffee with bitcoin you would have had to pay $57 to make that transaction go through.”

Bitcoin transaction fees
Source: ABC.net.au

Cryptocurrencies ‘become an environmental disaster’

cryptocurrencies power
Source: ABC.net.au

Lack of trust will limit cryptocurrency adoption, says BIS (MarketWatch), Rated: A

While hard-core proponents like the Winklevoss twins say those who can’t see the potential of bitcoin and other digital currencies as a global currency, lack imagination, the BIS, which provides services to the world’s central banks, concluded that adoption of decentralized technology lacks one crucial component: trust.

money flower

Furthermore, central banks have made money transfer cost-effective and safe; once a payment is made it is final, something digital currencies have not. Over the past 12-months, bitcoin transaction fees have been both volatile and high. In December 2017, the average transaction fee was more than $50, according to bitinfocharts.

No, Bitcoin Won’t Use Up All The World’s Energy (Forbes), Rated: A

Let’s have a quick look at banking’s footprint. According to the world bank there are 12.5 bank branches per hundred thousand people in the world.

The world population is 7.6 billion so there are, at least, according to the World Bank (and they should know), just shy of 1 million bank branches. The have 3 million ATMs, roughly the same number of machines as there are ASICs mining bitcoin. As such, bitcoin uses the same amount of energy as the banking sectors ATMs, leaving that business to boil the oceans with 1 million branches and the resource drain of 60 million people and their associated overheads. (Yes, a bank like HSBC does employ 228,000 and have 3,900 offices.)

Bitcoin Breaking the Internet Is a Cry for Help (Bloomberg), Rated: A

But amid all the righteous indignation, there was something missing: What exactly does BIS suggest we should do about regulating crypto?

Six Alternatives to an Initial Coin Offering (Bitcoin.com), Rated: A

A Security Token Offering (STO) is a fully regulated ICO which proceeds with the SEC’s blessing.

The Interactive Initial Coin Offering (IICO) was first proposed in a paper by Vitalik Buterin as a fairer model of ICO. It’s designed to prevent the sort of FOMO and gas wars that can result in whales getting all the tokens and squeezing out investors of humbler means.

Decentralized justice protocol Kleros has become the first project to trial an Interactive Initial Coin Offering.

“The Initial Supply Auction utilizes a descending price auction, where the price starts intentionally high and ticks down incrementally toward its intentionally low price floor as long as the auction is open.”

A Simple Agreement for Future Tokens provides a means of overcoming the risk that tokens sold for a project that is under development could be classified as a security. To circumvent this, investors contribute funds on the understanding that they will receive their tokens once the network is operational and the tokens are usable.

Most ICOs now allocate a portion of their tokens to an airdrop –  i.e a giveaway – to onboard a distributed community in the hope that these individuals will become users of the platform. It’s standard practice to distribute less than 5% of tokens via an airdrop, but there is a bolder approach: to give away the majority of your tokens in this manner, retain a portion for the team as a reserve, and then hope that the market assigns value to the token once it starts trading.

Kleros-Blue Frontiers Partnership: Decentralized Justice for Floating Cities (Medium), Rated: B

We are proud to announce that Kleros has partnered with Blue Frontiers to provide decentralized justice for transactions in Seastead communities.

George Friedman: Blockchain Will Be “Obsolete” (Ethereum World News), Rated: B

George Friedman, a respected geopolitical analyst, famous for being the author of “The Next 100 Years: A Forecast for the 21st Century”, mentioned that blockchain technologies will eventually become obsolete.

European Union

Binance Decentralized Exchange Coming Soon – And Just About Every Coin Is Welcome (The Daily HODL), Rated: AAA

The decentralized exchange is called Binance Chain. According to a new report, nearly anyone will have the freedom to list a coin.

“On the decentralized exchange we’ll have less control,” says Zhao. “More likely anybody can list any coin. That’s the philosophy of the decentralized exchange, it’s freedom of choice, freedom of investments. But with freedom there will be people who are scammers. That’s not something we can control.”

Zhao says Binance Chain will require much more processing power than Binance, and will be slower, with higher fees.

Binance Implements New Features To Help Improve User Experience (NewsBTC), Rated: A

However, Binance has taken the initiative to support three airdrops from the recently launched EOS mainnet, pleasing many users in the process.

Binance will only be supporting the IQ, DAC and EON airdrops, three of the most notable projects launched on the EOS blockchain.

Ethereum Price Analysis: No less than 24 technical barriers clustered in a dense $ 30 range (FX Street), Rated: AAA

The ETH/USD moves slightly below the $500 level, showing how weak it is due to the psychological influence of not being capable of conquering the round level. Our technical confluences indicator indicates that there are 24 technical components in a wide range of price.

Ethereum
Source: FX Street

Looking at the detail, the time range of the indicators do not exceed 1 Day, with the 1 Hour and 15 Min as the most common time frames.

Ethereum confluence
Source: FX Street

Ethereum Has a Few Catalysts in Its Future That Could Move Its Price Higher (cryptovest), Rated: A

For one crypto in particular, Ethereum, there are some specific happenings that could play in its favor. Bitcoin guru Brian Kelly pointed them out recently.

One of the catalysts that could move Ethereum’s price higher relates to Augur. It’s one of the oldest ICOs, and has been in development for about two or three years, Kelly said.

Last week, the U.S. Securities and Exchange Commission announced that it would not regulate Ethereum and Bitcoin as securities, essentially clarifying that the two cryptos were not securities.

Ethereum miners are looking forward to upgrades that are thought to be more catalysts to moving the crypto’s price higher.

Crypto trading software firm Ibinex receives licence in Estonia (Verdict.co.uk), Rated: A

Ibinex, a US-based provider of white-label solutions for cryptocurrency exchanges, has secured a licence to operate in Estonia.

EU Blockchain Observatory and Forum Creates Blockchain Map, Highlights Growth of Cryptocurrencies (Dash Force News), Rated: B

The EU Blockchain Observatory and Forum, which is an initiative by the European Commission, has developed an interactive map for all cryptocurrency and blockchain startups and events.

UBS CEO: Blockchain Is ‘Almost a Must’ for Business (CoinDesk), Rated: B

The CEO of Swiss financial services giant UBS Group AG endorsed blockchain technology in an interview, suggesting that it is “almost a must” for business.

United Kingdom

BIS: Initial coin offerings should be regulated like IPOs (FN London), Rated: AAA

So-called initial coin offerings are no different from floating a company on a stock exchange and should therefore be treated the same by regulators, according to the Bank for International Settlements.

The BIS, which is the bank for global central banks, pre-released a chapter from its annual economic report on Sunday in which it echoed warnings from national regulators about cryptocurrencies and ICOs, which are used by firms to raise funds through the sale of digital tokens.

eToro Adds Cardano to Expanding List of Cryptocurrencies (PR Newswire), Rated: A

eToro, a global trading and investment platform with over ten million users, has today added Cardano onto its platform, bringing the total number of cryptocurrency assets available on the site to eleven.

China

Internet Cafes Hacked to Mine $ 800k in Siacoin Cryptocurrency (CoinDesk), Rated: AAA

According to a local news report on Saturday, police in Rui’An city in Zhejiang province arrested 16 suspects who, it’s claimed, have gained 5 million yuan ($800,000) by hacking more than 100,000 computers in internet cafes across 30 Chinese cities since July of last year.

Australia/New Zealand

Pros and cons of issuing central bank digital currency (Scoop), Rated: AAA

The key finding is that, on balance, the pros and cons are mixed across the range of central bank functions; and there is a clear need for central banks to better evaluate and understand the implications for both monetary policy and financial stability, relative to any digital currency they might issue.

Asia

Bank of Korea opposes the idea of central bank digital currency  (FX Street), Rated: AAA

In a report published on Monday, the Bank of Korea said that it was against the idea of issuing its own digital currency, as reported by The Korea Times.

Japan’s SBI Crypto Exchange Adds Two Major Cryptocurrencies (Bitcoin.com), Rated: A

Japan’s SBI Virtual Currencies has added support for two major cryptocurrencies in addition to the one trading pair that its crypto exchange service, Vctrade, launched with. Users who pre-registered prior to the launch can now trade BTC, BCH, and XRP against the Japanese yen.

This Japanese Village Is Planning Its Own ICO (CoinDesk), Rated: B

Nishiawakura – a village of approximately 1,500 people in the Okayama prefecture in Japan – revealed its plan last week to launch a regional initial coin offering as a way to secure funding. The municipality, in particular, relies on forestry to support its economy – about 95 percent of the town is made up of forest area, according to the village’s official announcement.

Africa

Bancor Launches Community Token Network to Combat Poverty in Kenya (Coin Telegraph), Rated: AAA

Bancor is launching a network of blockchain-based community currencies in Kenya aimed at combating poverty, according to a press release shared with Cointelegraph June 18.

Latin America

New Coffee Machine Created By Brazilian Entrepreneur Powered By Bitcoin (Market Exclusive), Rated: AAA

Blockchain and cryptocurrencies have enabled a lot of innovation over the past few years and they still continue to do so. The latest is a Bitcoin (BTC)-powered coffee machine that was invented by a Brazilian entrepreneur named Ricardo Reis.

Eurasia

Trial of ‘Lightning Fast’ Protocol That Can Handle 60,000 Transactions Per Second Has Begun (Coin Telegraph), Rated: AAA

A blockchain-based digital asset exchange network has launched a “lightning fast” protocol which is capable of processing more than 60,000 transactions per second.  

#MetaHash says its protocol, known as #TraceChain, takes no longer than three seconds to approve each transaction. A trial of its geographically-distributed network has begun and a free browser is available on Windows, Linux and Mac OS X platforms, with mobile-based apps for iOS and Android to follow shortly.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor

About the author

Allen Taylor

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