Daily News Digest Featured News

Tuesday August 14 2018, Daily News Digest

Bitcoin price
Source: Bloomberg

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United States

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European Union

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News Summary

United States

Bitcoin Slips Under $ 6,000 As Rout Resumes — Here Are The Horror Stories (Forbes), Rated: AAA

Bitcoin has given up its support above $6,000 and fallen below the waterline for the second time in 2018, and cryptocurrency investors — including those who got into ethereum and ripple — have been sharing their stories of woe.

Bitcoin
Source: CoinDesk and Forbes

The ‘R’ And ‘C’ Words Enter The Vocabulary Of Bitcoin Enthusiasts (Forbes), Rated: A

Rehypothecation. Commingling. These two words are entering the vocabulary of bitcoin enthusiasts. Soon, they will roll off tongues as freely as the term “fiat currency” does today, thanks to the entry of Wall Street incumbents into bitcoin, because rehypothecation and commingling are pervasive Wall Street practices that enable the financial system to create more claims to an underlying asset than there are underlying assets. This can offset Bitcoin’s algorithmically-enforced scarcity and, all else equal, suppress its price.

New Bakkt Venture Could Make Bitcoin As Mainstream As Starbucks (Forbes), Rated: A

Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility.

The first part of Loeffler’s sentence bears highlighting: Bakkt aims to serve (1) institutional investors; (2) merchants; and, (3) consumers.

XRP Cryptocurrency Now Down 90% From 2018 Price High (CoinDesk), Rated: AAA

At 00:01 UTC, just after Monday’s close, the cryptocurrency dropped to $0.27 cents for the first time since December 12, 2017, according to CoinDesk price data. XRP was last seen trading at $0.2705, marking roughly a 2.95 percent decline since the day’s open.

At press time, XRP is one of the biggest losers among the top 10 cryptocurrencies by market capitalization and is reporting a 7-day loss of 36 percent, according to data from CoinMarketCap. Its individual market capitalization also fell by more than $5.4 billion within that period.

Ripple XRP
Source: CoinDesk

US Federal Court Denies Motion to Remand Against Ripple (CoinTelegraph), Rated: A

The U.S. District Court, Northern District of California has ruled to deny a motion to remand against Ripple, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse, according to an official document issued August 10.

The original lawsuit was first initiated by XRP investor Ryan Coffey in a San Francisco court on May 3, 2018, claiming that he lost $551.89 while trading XRPtokens. The class action was filed by law firm Taylor-Copeland, alleging that Ripple sold XRP tokens in violation of both the U.S. the Securities Act and the California Corporations Code. The plaintiff also claimed that XRP is not genuinely decentralized.

Coinbase Index Fund Reduces Annual Fee to ‘Attract Institutional Investors’ (CoinTelegraph), Rated: AAA

The U.S.-based platform stated that it will reduce its Index Fund’s annual management fee “for all new and existing investors” from 2 to 1 percent, explaining:

“We’re reducing our fee in order to attract investors who are familiar with lower-fee index funds in other asset classes. This will help introduce a new category of institutional investors into the cryptocurrency space.”

How Coinbase Handled Scaling Challenges on Their Cryptocurrency Trading Platform (InfoQ), Rated: A

Coinbase, a digital currency exchange, faced scaling challenges on their platform during the 2017 cryptocurrency boom. The engineering team focused on upgrading and optimizing MongoDB, traffic segregation for hotspots to resolve them, and building capture and replay tools to prepare for future surges.

The Mystery Behind Tether, the Crypto World’s Digital Dollar (WSJ), Rated: AAA

A fast-growing digital currency that claims to be backed by U.S. dollars has become a cornerstone of the volatile cryptocurrency market. The problem: There isn’t hard evidence the cash supporting it exists.

Tether, whose main selling point is its tie to the U.S. dollar, has grown dramatically over the past year—its daily trading volume of around $3 billion trails only bitcoin’s $5 billion. Tether has also become a “crypto bank” for cryptocurrency businesses that have trouble maintaining real-world banking relationships, providing liquidity and a place to park assets, according to a new study from blockchain research firm Chainalysis.

Tether
Source: Chainalsysis, Kaiko, and The Wall Street Journal

Litecoin Price Analysis: LTC/USD Could Decline To $ 50 (Ethereum World News), Rated: A

This past week, there were heavy declines in litecoin price from well above the $65.00 level against the US dollar. The LTC/USD pair tumbled and broke the $65.00, $64.50 and $60.00 support levels.

LTC price was clearly under a lot of pressure as it traded below $58.00. The price traded as low as $55.12 and later it started an upside correction.

It moved above the 50% Fib retracement level of the last drop from the $65.02 high to $55.12 low. Buyers even pushed the price above the $60.00 level, but they failed to hold declines that resulted in a rejection.

Litecoin Price
Source: Ethereum World News

Charlie Lee Says Litecoin Is Effectively Bitcoin’s Sidechain (Daily HODL), Rated: A

Litecoin founder Charlie Lee claims that the Lightning Network can utilize Litecoin as Bitcoin’s sidechain via atomic swaps. Seamless transfers promise to be faster, cheaper and more secure.

Blockchain Social Network Minds Is Migrating to Ethereum for Launch (CoinDesk), Rated: A

Blockchain-based social network Minds is migrating its platform to the ethereum network, the startup announced Monday.

The platform already sees around 500,000 daily page views, CEO Bill Ottman told CoinDesk. The platform also claims roughly 1.25 million registered users, about 75 percent of whom have already earned test tokens. These users will be eligible to receive the platform’s live token via a free “airdrop” distribution as a result.

Should You Be Considering The Use Of Blockchain To Power Your Customer Loyalty Program? (Forbes), Rated: A

Their research had identified nearly a dozen companies from around the world that have announced an intention to launch either blockchain-based customer loyalty programs or branded crypto-tokens in order to encourage customer engagement.

In Rare Decision, ICO Founders Will Delay Crypto Paydays – For a Decade (CoinDesk), Rated: A

In an industry that’s become synonymous with fast cash, patience can be a rare commodity.

That makes a little-discussed announcement last week by the Nebulas project, powered by the top 100 cryptocurrency NAS, all the more remarkable. The team behind the protocol, today valued at $64 million, will now voluntarily wait a decade before they can get their hands on the blockchains’ tokens they’ll earn for their labor – seven years longer than they had originally planned.

FinCEN Eyes Cryptocurrency Amid 1,500 Monthly Complaints (PYMNTS), Rated: A

1,500 complaints about suspicious activity per month.

That’s the tally that FinCEN Director Kenneth A. Blanco told a conference last week that FinCEN, which operates as part of the Treasury Department, sees as cryptocurrency gains traction.

Facebook: We’re Not Building a Cryptocurrency on Stellar (CCN), Rated: A

Social media conglomerate Facebook denied reports that its blockchain task force is considering launching a cryptocurrency project through a partnership with Stellar.

Playboy Enterprises sues cryptocurrency company, alleging fraud and breach of contract (Los Angeles Times), Rated: A

Playboy Enterprises, the parent company behind the legendary adult magazine, is suing a cryptocurrency technology company on allegations of fraud and breach of contract, claiming that it failed to live up to an agreement to integrate blockchain technology into Playboy’s online media channels.

The lawsuit, recently filed in Los Angeles County Superior Court, claims that Playboy reached an agreement in March with the Canadian company Global Blockchain Technologies, under which GBT would implement the third-party cryptocurrency Vice Industry Token on Playboy’s sites. Playboy said GBT hasn’t made good on the deal and also failed to pay the $4 million it promised as part of the agreement.

$ 100 billion retirement risk: SEC issues new warning about IRA fraud and cryptocurrencies (CNBC), Rated: A

In its August 8 Investor Alert, the SEC warned that assets in traditional IRAs — stocks, bonds and mutual funds — generally fall under the agency’s oversight, but that is not the case with self-directed IRAs, which lack transparency.

The SEC said there wasn’t a single event that led the agency to issue the new warning, but Lori Schock, director of the SEC’s Office of Investor Education and Advocacy, told CNBC, “Now that some self-directed IRAs include digital assets — cryptocurrencies, coins and tokens, such as those offered in so-called initial coin offerings — we think it is important to alert investors about the potential risks and fraud involved with these kinds of investments that may not be registered.”

Banks and Retailers Are Tracking How You Type, Swipe and Tap (The New York Times), Rated: A

The way you press, scroll and type on a phone screen or keyboard can be as unique as your fingerprints or facial features. To fight fraud, a growing number of banks and merchants are tracking visitors’ physical movements as they use websites and apps.

Some use the technology only to weed out automated attacks and suspicious transactions, but others are going significantly further, amassing tens of millions of profiles that can identify customers by how they touch, hold and tap their devices.

Microsoft’s Two New Patents Fuse Blockchain Tech With Trusted Computing Techniques (CoinTelegraph), Rated: B

Two new patents from Microsoft reveal that the tech giant is looking to bolster its blockchain solutions with the use of trusted execution environments (TEEs), according to two filings published by the U.S. Patent and Trademark Office (USPTO) August 9.

What are the limitations of smart contracts, and how can service-based organisations address these? (Yahoo! News), Rated: A

However, not everyone is this positive about smart contracts. Dr Gideon Greenspan, founder and CEO of Coin Sciences, a company behind the MultiChain platform for private blockchains. He believes that while many ideas around smart contracts usage are being generated, most of them are futile.

International

Cryptocurrency Market Loses $ 43 Billion In Five Days (Ethereum World News), Rated: AAA

Between Wednesday (August 8, 2018) and Sunday (August 12, 2018) the cryptocurrency market lost about $43 billion. During the weekend alone, the loss was a whopping $8 billion as the prices of many cryptocurrencies tanked considerably.

Bitcoin chart
Source: Ethereum World News

Ethereum Crashes to 9-Month Price Low Below $ 300, While Bitcoin Shows Resilience (CoinTelegraph), Rated: AAA

Ethereum (ETH) is currently trading at $288, down a stark 9.77 percent on the day. Having traded sideways most of the day to hold close to the $320 mark, the top altcoin saw a vertiginous plummet in the two three hours up to press time.

Ethereum’s losses on its daily chart are the most severe among the top ten cryptos on CoinMarketCap’s listings. On the week, the leading altcoin’s losses are over 28 percent, with monthly losses pushing 33 percent.

Ethereum
Source: CoinTelegraph

Ethereum’s falling price splits the crypto community (TechCrunch), Rated: A

The drop also marks the first time ever that the price of an Ether has fallen below its valuation over one year: one Ether is worth $266 right now at the time of writing, versus $304 on August 14 2017. The token has been steadily falling since early May, when its peak value was $808, and as the lynchpin for many ICO project tokens, its demise has sent the value of most other tokens down, too.

Just looking at Coinmarketcap.com this morning, all but two of the top 100 tokens are down over the last 24 hours with many losing 10-25 percent of their value over the past day. Bitcoin,  too, has dropped below $6,000, having topped $8,000 for a time last month.

ethereum chart
Source: TechCrunch

Stellar Lumens, Litecoin, EOS, IOTA, Tron Technical Analysis (NewsBTC), Rated: AAA

Despite the stable prices in some altcoins as EOS and Litecoin, most coins under our review are yet to recover. IOTA for example is last week’s top loser shedding more than 50 percent on a weekly basis and is down 12 percent in the last day.

EOS Technical Analysis

EOS
Source: NewsBTC

Litecoin (LTC) Technical Analysis

Even though Litecoin is down 20 percent in a weekly basis, prices have been a tad bit stable in the last 24 hours.

Litecoin
Source: NewsBTC

Stellar Lumens (XLM) Technical Analysis

Stellar is the top performing coin in the top 10. Not only did bulls drive prices above 22 cents—our previous buy trigger—but there have been a convincing reversals of Aug 8 losses.

Stellar Lumens
Source: NewsBTC

Tron (TRX) Technical Analysis

TRX is down 23 percent and perched outside the top 10 with a $1.46 billion market cap.

Tron
Source: NewsBTC

Cryptocurrency exit scams have conned people out of almost $ 100M (The Next Web), Rated: AAA

Almost $100 million in cryptocurrency has been stolen by exit scammers, as ICO tokens continue to plummet in value.

Indeed, the figures suggest that ICO scams over the last two years total at least $96.8 million in value, according to data compiled by blockchain intelligence firm Diar. For context, data suggests that blockchain startups have raised over $6.3 billion from ICOs in 2018 alone.

ICO exit scams
Source: The Next Web and Diar Report

Consider TRON, even though their current value is 92 percent less than its all time high, it is still up on its ICO price – the same can be said of Status.

TopPublicICO
Source: The Next Web and Diar Report

5 Cryptocurrencies Expected to Grow in Late 2018 (Coindoo), Rated: A

Bitcoin (BTC) is the apex cryptocurrency and the standard by which other currencies are often compared and measured.

Ripple (XRP) was the most impressive performer during the cryptocurrency boom of late 2017 and early 2018. The price of the currency surged by over 36,000% at its peak and it attracted a large number of investors.

Ethereum Classic (ETC), which was created after the Ethereum fork of 2015 has been a rather slow-moving and dormant name for the past two years. However, the currency is all set for a major growth in late 2018.

Verge (XVG) has matured over the course of the year. While the currency was tested against many challenges, including a major market collapse that lasted almost half the year – Verge has shown that it could stay afloat by itself, without the backing of any “influencers”, which has been a major controversy for the company over the past year.

Litecoin is always a ‘safe bet’ when it comes to investing in cryptocurrencies.

Are Cryptocurrencies the New Money Laundering Frontier? (The National Interest), Rated: A

Where would international crime be without money laundering? The quick answer is that criminals would have their ill-gotten gains stuck in one economy, those profits would be unable to be converted into legal tender and assets, and they would be less powerful and wealthy. Without the ability to place, layer and integrate “dirty money” into “clean money,” international criminals would find their business all that more difficult. But money laundering, an ever changing enterprise, has helped keep the crooks in business. Indeed, money laundering has been able to ride the back of technological change, financial innovation and globalization. And cryptocurrencies are the most recent instrument for the advancement of money laundering.

Weiss Ratings Encourages Nations To Embrace Privacy-Centric Digital Currencies Such As Monero (Smartereum), Rated: A

Governments across the globe are waging fiat currency war. They want all liquid assets to be under the covering of financial institutions. This is a major issue for a lot of people under corrupt, authoritarian regimes. Two crucial risks being an invasion of personal privacy and seizure of assets. This problem is solved by the non-monetary application of privacy-centric digital currencies.

At the time of writing, Monero [XMR] has moved one step higher on the list of top digital currencies in the world. The digital currency is on the 10th position with a market cap of 1.54 billion and a trading volume of $19.97 million over the past twenty-four hours. The current value of the digital currency is $95 after a decrease of less than 0.5 percent over the past twenty-four hours.

Monero
Source: Smartereum

A Decentralized Reputation System: How Blockchain Can Restore Trust In Online Markets (Forbes), Rated: A

Internet connectivity has reinvented how consumers interact with information. Consumers now rely heavily on online reputation systems for browsing and researching products before making online purchase decisions. Social media platforms like Facebook enable us to share ratings and recommend good finds to our online networks. Meanwhile, many online marketplaces have built-in review and rating systems for both vendors and customers.

Altcoins This Week: CoinMarketCap Had A Price Calculation Error, Coinbase Newest Addition And More (Cryptocoin.News), Rated: A

Today on Altcoins This Week we comment on the recent calculation error CoinMarketCap experienced, which caused altcoins to show in green; we comment on Coinbase plan to add in up to 40 new coins and much more.

European Union

Ether Tumbles as Concern Increases That ICOs Are Cashing Out (Bloomberg), Rated: AAA

Initial coin offerings using the Ethereum blockchain are seen as one of the main catalysts for sending Ether’s price surging last year. Now they’re being blamed for its decline.

Ether, the cryptocurrency of the distributed-ledger network, tumbled by as much 17 percent Monday, the biggest drop since March. The price slumped to as low as $285, pushing it below $300 for the first time since November. The digital coin is down about 60 percent this year, compared with Bitcoin’s 54 percent slide.

ether
Source: Bloomberg

Pressure from ICOs cashing out is compounding with generalized bearishness in the cryptocurrency market, with market capitalization dropping to about $200 billion from a high of over $800 billion in January, on concern about tightening regulation and slow adoption.

Lite.im – Send Litecoin via Text or Email With Zulu Republic (Crypto Disrupt), Rated: A

A new project launched by Zulu Republic is endeavoring to make litecoin transactions available to anyone with a cell phone, with a feature called Lite.im. Zulu Republic is a blockchain ecosystem which aims to make it easier for all people to access the benefits of DLT.

Cardano launches Smart Contract Testnet for IELE VM (Cryptonewsz), Rated: B

The ADA Cardano has released a Testnet for the IELE Virtual Machine (VM). This is the second testnet released by Cardano, the first was KEVM testnet. The new Testnet is being developed for testing smart contracts and for refining any potential flaws in the system. The IELE virtual machine was built by collaborating with IOHK.

China

A $ 40 Billion Plan to Cash Out Of Bitcoin (Bloomberg), Rated: AAA

The 1980s cyberpunk novels that predicted today’s internet failed to conceive of anything as outlandish or contradictory as Bitcoin: A digital currency that’s spent nowhere, a commodity that’s used for nothing, and a libertarian dream that’s effectively run by elites.

Power Pool
Source: Bloomberg News

Now, after its 66-percent price drop from December highs, comes yet another fantastical plot twist. The Chinese company that makes most of the world’s Bitcoin-mining rigs — as well as a big pile of mining and crypto-trading profit — is thinking about a stock-market listing. The proceeds would be used to develop the kind of sophisticated hardware that would let it compete head-on with tech giants like Google in areas way beyond Bitcoin.

Bitcoin price
Source: Bloomberg

Tether Prints 50 Million USDT, The Controversy Continues (Ethereum World News), Rated: AAA

On Saturday morning, the Tether organization issued $50 million new USDT tokens amidst a bearish market. This information comes via the Omni block explorer (Omniexplorer), which helps track Omni-based assets, such as USDT tokens. With this move, Tether now has a $2.4 billion market cap, which has brought it to become the 9th most valuable cryptocurrency.

Tether
Source: Ethereum World News

Hong Kong University Receives $ 20 Mln Research Grant for Payment Systems, Blockchain (CoinTelegraph), Rated: A

The Hong Kong University of Science and Technology Business School has received a $20 million research grant to improve the security capabilities of electronic payment systems, China News reported August 12.

The Hong Kong University of Science and Technology (HKUST) Business School has reportedly partnered with the University of Hong Kong (HKU), the Chinese University of Hong Kong (CUHK), and the City University of Hong Kong (CityU) to work on the research project.

China’s Communist Party Publishes DLT Primer (CCN), Rated: A

People’s Daily Publishing House, led by the Chinese Community party, has published a book on blockchain technology titled Blockchain – A Guide for Officials, which will cover all aspects of the new technology and serve as a guide for bureaucrats. The news was first reported by local media outlet People’s Network.

Last month, South China Morning Post reported that from Jan. to July 2018, 3,078 Chinese companies had registered with blockchain in their names. The number was only 555 in 2017 — a 454% increase when compared to last year’s filings.

Asia

EOS (EOS) Continues To Attract New DApps And Those On The Ethereum Platform (Ethereum World News), Rated: AAA

The EOS (EOS) cryptocurrency has never looked this attractive for purchase in a very long time. The last time it was hovering at current values of $5 was back in mid March when it was valued at $4.34 before it set itself for a bull run that was catalyzed by the Mainnet launch that was scheduled to happen on the 2nd of June.

But all is not lost. Underneath the news of Bitcoin ETFsRipple lawsuits and Stellar being listed on Coinbase, EOS is slowly but surely attracting DApps (decentralized Applications) that were initially on the Ethereum platform as well as changing the minds of any that were planning to develop on ETH.

EOS DApps
Source: MeetDotOne on Twitter

India’s cryptocurrency regulations will likely come by end of 2018 (Quartz), Rated: A

The long-awaited regulations for the Indian cryptocurrency ecosystem are now likely to come only by the end of the year.

Kucoin To Start Supporting Institutional Investors (Market News), Rated: A

KuCoin digital currency exchange has launched an institutional investor program through which the exchange will start offering discount to institutional investors who undertake bulk transaction on the platform.

22-year-old crypto millionaire scammed out of 5,500 bitcoins (Mashable), Rated: A

According to Bangkok Post, a 22-year-old Finnish man called Aarni Otava Saarimaa lost a total of 5,564.4 bitcoins (worthroughly 24 million dollars at the time) to scammers in Thailand.

Famous Thai Actor Arrested For Being Allegedly Involved in 5,500 BTC Worth Crypto Scam (Coinspeaker), Rated: A

As it has been informed by the Thai media, Jiratpisit Jaravijit, also known as Boom, was arrested after allegations of his involvement in a money laundering scheme with Bitcoin. As a result of such a scam, a Finnish man lost $34 million.

Y Ventures Group becomes first public firm to launch an ICO in Singapore (Money Control), Rated: A

Singapore-based e-commerce firm Y Ventures Group has become the country’s first public entity to hold an Initial Coin Offering (ICO) in Singapore to raise about USD 50 million.

Energi Mine announces Hotel Cappuccino partnership (Retail Tech Innovation), Rated: B

Energi Mine is set to provide its blockchain-based reward platform to South Korea’s Hotel Cappuccino, issuing EnergiTokens (ETKs) that will be distributed by the hotel to its guests as a financial reward for energy saving behaviour.

Eurasia

Where Roads Can’t Reach, Blockchain Drones Just Might Travel (CoinDesk), Rated: A

According to its makers, the drone can carry up to 880 pounds, travel as far as 220 miles and work up to 8 hours. And everything that happens to these drones is going to be recorded on the project’s own blockchain, SKYFchain.

The SKYF team is trying to crack into a rapidly growing ecosystem, with PwC valuing the emerging global market for drones at over $127 billion in 2016. As of today, drones can only carry small objects, but the SKYF team aims to open a totally new market for heavy-duty cargo drones.

MENA

Turkey Meltdown Propels Lira Volatility Above Bitcoin (Bloomberg), Rated: AAA

The 10-day swings in the lira relative to the U.S. dollar now exceed those for Bitcoin amid Turkey’s escalating currency crisis.

Lira bitcoin
Source: Bloomberg

Turkish Residents Turn To Cryptocurrency As U.S Triggers ‘Economic War’ (Yahoo! Finance), Rated: A

Turkey finds itself in a ferocious economic meltdown on President Donald Trump approving a 20% tariff increase on the country’s Aluminum export and a 50% tariff increase on Steel. The turmoil has increased the appeal of most cryptocurrencies with Bitcoin (BTC) adoption on the rise.

Cryptocurrency Trading Is Illegal In Saudi Arabia (Ethereum World News), Rated: B

State officials in Saudi Arabia have reminded citizens that trading in cryptocurrency is illegal in the country. This reminder comes following the recent emergence of virtual currency trading promotions in the Arab nation.

Caribbean

Bitcoin.com CEO Roger Ver Eyes ICO as Token Issuance Protocol Comes to Bitcoin Cash (CoinTelegraph), Rated: AAA

Bitcoin.com CEO Roger Ver has hinted his publication may launch an ICO as he unveiled a new tool allowing developers to issue tokens on the Bitcoin Cashblockchain in a Bitcoin.com video August 11.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor

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Allen Taylor

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