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Tuesday August 28 2018, Daily News Digest

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United States

$ 500 Million In Tether (USDT) Has Made No Impact On Bitcoin (BTC) Price (Ethereum World News), Rated: AAA

While the company behind the most popular stablecoin cryptocurrency, now ranked 8th in total market capitalization with $2.84 billion in circulation, has been the target of numerous investigations, particularly those pertaining to the assets backing the coin, August’s massive influx of new tethers is apparently not swaying the crypto markets. Despite adding an additional $500 million worth to the total market capitalization, a move that has in the past brought accusations of Tether and its partners artificially propping up the price of the industry, Bloomberg reports that the link between new USDT hitting exchanges and an increasing Bitcoin price has eroded over the past year. Whether because of the prolonged bear cycle of 2018, which is already drawing attention for its investor fatigue, or a new market force at work, Tether no longer has the same impact as in the past.

WSJ Crypto Reporter: The SEC’s Bitcoin ETF Concerns Are Valid (Ethereum World News), Rated: A

As such, Vigna, who has become the WSJ’s foremost crypto reporter, recently appeared on CNBC to discuss his opinion regarding the regulatory state of Bitcoin/Crypto-backed ETFs.

Commencing his segment regarding the subject, the reporter stated:

The SEC’s concerns are very valid… for a currency that makes a big deal out of having a public transaction ledger, there is not a lot of transparency with exchanges — what’s going on behind the scenes. You can see the price, the transaction but you don’t really know who is doing the exchanges.

‘Wolf of Wall Street’ warns investors of the next big trap: Bitcoin (CNBC), Rated: A

Former penny-stock broker Jordan Belfort spent nearly two years in prison for scamming investors. Bitcoin, he has no doubt, is the next trap that could leave some retail investors penniless.

“I was a scammer. I had it down to science, and it’s exactly what’s happening with bitcoin,” he told CNBC in a documentary airing Monday. “The whole thing is so stupid, these kids have gotten themselves so brainwashed.”

Don’t believe the ‘doom mongers,’ says bitcoin analyst (MarketWatch), Rated: A

After an early-August selloff, bitcoin and major digital currencies, have, for the most part, righted the ship. For one financial consultant, the decline is over, and it’s onward and upward from here.

“Despite what the doom mongers would want you to believe, the recent selloff was only ever going to be temporary and prices were bound to rise again relatively quickly — as they are now doing,” wrote Nigel Green, founder and chief executive of deVere Group in an email to MarketWatch.

Crypto-Backed Lending Platform Blockfi Approved to Operate in California (Bitcoin.com), Rated: AAA

Back in July, news.Bitcoin.com reported on the cryptocurrency-backed USD lending platform, Blockfi, which raised $52.5m from investors in an investment round led by Michael Novogratz’s Galaxy Digital. On Monday, Blockfi announced the firm is now servicing residents from California and the latest expansion leads to the crypto-lending service being available in 44 states.

The World’s Oldest Blockchain Has Been Hiding in the New York Times Since 1995 (Motherboard), Rated: AAA

Blockchains, insofar as they constitute a chronological chain of hashed data, were first invented by the cryptographers Stuart Haber and Scott Stronetta in 1991 and their use cases were a lot less ambitious. Instead, Haber and Stornetta envisioned the technology as a way to timestamp digital documents to verify their authenticity. As they detailed in a paper published inThe Journal of Cryptology, the ability to certify when a document was created or last modified is crucial for resolving things like intellectual property rights.

As Haber and Stornetta realized, timestamping a digital document would require solving two problems. First, the data itself would have to be time stamped “so that it is impossible to change even one bit of the document without the change being apparent.” Second, it would have to be impossible to change the timestamp itself.

What Haber and Stornetta described in their 1991 research paper is a prototypical version of the blockchains that power most cryptocurrencies today. In fact, when Satoshi Nakamoto first described Bitcoin in a 2008 whitepaper, three of the eight papers cited were written by Haber and Stornetta. When asked how he felt about being the inspiration for Bitcoin, Stornetta told theWall Street Journal that it felt “pretty cool.”

But 14 years before Bitcoin was invented, Haber and Stornetta created their own timestamping service called Surety to put their scheme into action.

CULedger raises 85 percent of initial funding for its credit union-focused distributed ledger platform (CUInsight), Rated: AAA

CULedger, a credit union-owned CUSO that focuses on delivering innovative applications to credit unions through its cross-border global distributed ledger platform, announced today that it has secured $8.5 million in Series A funding. This round of funding will continue through Nov. 18, 2018.

Cryptocurrency “miners,” utilities look for ways to get along (CBS News), Rated: A

It’s not as if the power companies don’t want the additional revenue. But in the case of Grant County in Washington State, more than 100 cryptocurrency miners are requesting power. Combined, they are asking for 1,700 megawatts of new power — that’s the equivalent of two nuclear power plants, or 1.5 times the power needs of the city of Seattle. Grant PUD’s average electric load is about 600 megawatts.

The average cost of electricity in the U.S. is about 12 cents per kilowatt-hour. But Grant PUD sells its electricity for only 1 to 2 cents a kilowatt-hour, Baric said. Grant PUD is a nonprofit, community-owned hydropower utility based in Moses Lake, Washington, about three hours southwest of Seattle. Its power generation facilities cover 2,800 square miles.


Wenatchee, Washington is known in the tour books as the “Apple Capital of the World.” Now some of the famous orchards now have a new neighbor — expansive sets of computer servers that are busy mining cryptocurrency.

Earlier in the month, Bitcoinist reported that Chinese ASIC manufacturer Bitman was getting ready to open a mining and data center in Rockdale, Texas, population 5,861.

The Common Council of Salamanca New York voted to put a halt to applications and the issuance of permits or approvals for virtual currency mining in areas where city electricity was supplied.

Creditors of Defunct Cryptocurrency Exchange Mt. Gox Can Now File Claims (Bitcoin Magazine), Rated: A

Creditors of Mt. Gox, the defunct cryptocurrency exchange, can now start submitting proofs of claim in a newly approved rehabilitation process, according to an update posted on the exchange’s website.

In the update, Nobuaki Kobayashi, the trustee of Mt. Gox, announced that the online claim filing system was now active for creditors. The new system is also opened to creditors who have filed proofs for claims in the previous bankruptcy proceeding.

BitcoinToken: Bitcoin Cash (BCH) Based Smart Contract & Token Creator Tool (Bitcoin Exchange Guide), Rated: A

BitcoinToken is a new tool for developers that are trying to build tokens, and smart contracts, using Bitcoin Cash’s network. The platform works in a very simple way, as writing smart contracts in assembly code.

A Regulated Bitcoin Fork: XBR, LLC Files with U.S. Treasury FinCEN (BusinessWire), Rated: A

XBR, LLC today announced its registration with U.S. Treasury FinCEN (Financial Crimes Enforcement Network) as a money services business (MSB Registration Number: 31000131217273) in the 409 (Money Transmitter) subcategory. This registration confirms XBR, LLC as the official administrator of the bitcoinR network and its native digital currency unit: XBR. The company has also completed its Bank Secrecy Act (BSA) E-Filer status to electronically and securely file discrete and BSA forms to FinCEN; the company began its associated compliance program this week.

First ‘ICO of a Building’ Is Set to Take Place on a Crowdfunding Platform (Propmodo), Rated: A

The posh, $200 million St. Regis Hotel in Aspen, Colorado has announced that it will be selling tokens to accredited investors through crowdfunding site Indigogo. The deal is planned for next month and it is a backup option after plans to do a traditional IPO for the property fell through.

Securities Commissioner issues cease and desist orders to three cryptocurrency companies (CSBJ), Rated: B

The companies that received the orders are Bionic Coin, Sybrelabs Ltd. (also known as CryptoARB) and Global Pay Net (also known as GLPN Coin and GPN Token). Previous orders were submitted to Bitcoin Investments Ltd. (also doing business as DB Capital), EstateX, Bitconnect Ltd. and Magma Foundation (also doing business as Magma Coin), the release stated.


Binance Launches Incubator, Coinbase Adds Info on Top 50 Cryptos (Bitcoin.com), Rated: AAA

The Binance Labs Incubation Program is a ten-week on-site program designed to help teams deliver a product or service with a market fit. It provides each venture with $500k in seed funding in exchange for 10% of their equity.

Coinbase has announced it started experimenting with new ways for customers to explore and view the top 50 cryptocurrencies by market cap . Some customers can now view historic trading data, current market cap, a description of the asset, and links to relevant white papers and project websites. The company wants to test various formats and types of information to display. It emphasizes that these new asset pages, most of which covering coins not available to trade on the exchange, do not mean that Coinbase intends to support any specific asset in the future.

Crypto Markets Keep Fluctuating: Most Top 20 Coins Back in Green, Bitcoin Above $ 6,700 (CoinTelegraph), Rated: AAA

Monday, August 27: crypto markets have seen another recovery attempt, with all of the top 20 coins by market cap in the green, according to data from CoinMarketCap.

After suffering a slump yesterday, crypto markets are back to green, with IOTA(MIOTA), Cardano (ADA), and EOS (EOS) seeing the biggest gains among the top 10 coins, while Bitcoin (BTC) has broken back above the $6,700 point. Most of the top ten coins are seeing only slight gains between 1 and 2 percent on the day.

crypto markets

The top cryptocurrency Bitcoin is trading at $6,744 at press time, up less than half a percent over the past 24 hours, but seeing weekly gains of about 4 percent.

Top altcoin Ethereum (ETH) has experienced similarly modest growth today, with its price up just under one percent over the 24 hour period. Ethereum is trading at $275 at press time, up 1.5 percent over the past 7 days, but down a jolting 41 percent on the month.

total market capEthereum Community Debates Consensus Algorithm Targeting ASIC Miners (ETHNews), Rated: AAA

ETHNews recently reported on the resurgence of concerns surrounding ASICmining rigs ahead of last Friday’s core devs call. In that coverage, we voiced some skepticism about the potential for the inclusion of an ASIC-resistant protocol so soon before the implementation of Constantinople. While the developers in the most recent call dismissed the possibility of ASIC-resistant measures in the October hard fork, it appears that they are taking the concern seriously. There is now discussion about the inclusion of a “programmatic proof of work” in Istanbul, the hard fork set to follow Constantinople. The algorithm, dubbed “ProgPOW,” has been in development for at least the last year and is described in-depth on GitHub:

“ProgPOW is a proof-of-work algorithm designed to close the efficiency gap available to specialized ASICs. It utilizes almost all parts of commodity hardware (GPUs), and comes pre-tuned for the most common hardware utilized in the Ethereum network.”

How Much Electricity Do Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Monero Use? (Bitcoin Exchange Guide), Rated: AAA

That’s true! If you ranked bitcoin against the rest of the world in terms of energy consumption, it would be the 47th largest energy consumer in the world, according to a recent series of tweets from Tim Swanson.

Swanson looked at the hashrate of the bitcoin network, which is about 50,000,000 terahashes.

This is the equivalent of 3,846,000 S9s, or over 3 million S9s.

The S9 draws about 1500 watts. Swanson multiplied 1500 watts by 24 hours a day to get an approximation of 36 kWh per machine per day. When you multiply that by the number of S9s securing the network, you get:

  • 138.4 million kWh of energy consumption on the bitcoin network per day
  • 50.5 billion kWh per year

Bitcoin Cash (BCH) Energy Consumption

BCH’s network hashrate has been hovering around 4 to 4.5 exahashes the past month, or 4.25 exahashes. When you do the math – similar to the BTC math above – you get a total of 327,000 S9s mining BCH while consuming 1080kWh per month. This gives you 11.77 million kWh of energy consumption per day or 4.30 billion kWh of energy consumption per year.

Ethereum (ETH) Energy Consumption

Swanson did similar math with the Ethereum network. He estimated there were 10 million GPUs mining on Ethereum.

Even if you assume every miner is using the most efficient Ethereum miner, the Innosilicon A10 scheduled to be released next month, you get a daily energy consumption of 12.6 million kWh consumed by 618,557 A10 machines.

Ethereum and EOS Only Have 8 dApps Combined with 300+ Active Users (CCN), Rated: A

According to Kevin Rooke, a cryptocurrency researcher, Ethereum and EOS currently have a combined eight decentralized applications (dApps) with more than 300 active users.

Yet, both blockchain networks have multi-billion dollar market valuations with Ethereum at $28 billion and EOS at $4.6 billion.

ethereum eos DApps

John McAfee Leads Bithemoth Exchange’s Top Five Crypto Influences (Bitcoin Exchange Guide), Rated: A

Cryptocurrency influencers, individuals who continuously stand for the crypto sphere, have had a great impact on many investors’ decision-making processes. The expertise levels of said figures typically varies, as it can include celebrities, investors, analysts and much more. To keep the list short and simple, Bithemoth Exchange has come up its respective top five and here is a quick breakdown:

Cryptocurrency influencers, individuals who continuously stand for the crypto sphere, have had a great impact on many investors’ decision-making processes. The expertise levels of said figures typically varies, as it can include celebrities, investors, analysts and much more. To keep the list short and simple, Bithemoth Exchange has come up its respective top five and here is a quick breakdown:

Ethlend vs Salt: Which is the Better Crypto Lending Platform (Coin Central), Rated: A

Every crypto loan requires two different assets for the smart contract to be valid. It stands to reason then during the period of the loan there is a very big possibility of exchange rate risk.

Let’s illustrate with an example: A user needs to borrow $500 for an emergency. He has 2 Eth which can be used as collateral (currently trading at ($275 per Eth). The loan-to-value ratio = $500 / $550 ($275 per Eth) = 90.9%.

SALT has a more centralized feel to the project. That does not, however, make it inferior. In fact, it is a far more polished network than Ethlend and with a top-quality team and advisors to boot, it also has the greater pedigree.

Ethlend, on the other hand, will appeal to users worldwide because it is far more decentralized. Aspiring entrepreneurs who have traditionally been excluded from an elite banking system may for the first time have access to capital. It wouldn’t be a surprise to hear of people building new virtual businesses with only a few Ethereum and a dream.

What The Mueller Investigation Says About Compliance For Cryptocurrencies (Forbes), Rated: A

Crypto just can’t catch a break. The news of Robert Mueller’s indictment of the 12 Russian military intelligence officers who were accused of using bitcoin to fund their hacking efforts during the 2016 presidential elections meant more bad news for cryptocurrencies. The officers are accused of conspiring to launder $95,000 through cryptocurrency transactions to avoid detection and these events have left both Russia and cryptocurrency under scrutiny.

84% of companies are dabbling in blockchain, new survey says (CNBC), Rated: A

In a new report published by PwC on Monday, 84 percent of executives surveyed said their companies are “actively involved” with the technology.

“Everyone is talking about blockchain, and no one wants to be left behind,” according to PwC’s 2018 Global Blockchain Survey, which included 600 executives from 15 territories.

Busting The Myths And Understanding The True Potential Of Blockchain (Forbes), Rated: A

In reality, blockchain is one of several key technologies — along with the internet of things (IoT), artificial intelligence and fog computing — that are revolutionizing businesses and transforming entire industries. Together, these four technologies can drive new business models and deliver new value propositions while solving longstanding challenges with transparency and security in transactions that involve multiple parties and large amounts of data.

European Union

EOS (EOS) Supported by $ 1 Million Order on Binance (cryptovest), Rated: AAA

The EOS (EOS) market price received substantial support that sent it above the $5 mark, after a $1 million order was noticed on Binance earlier this Monday:

EOS Binance

EOS jumped from $4.94 to $5.20 within 20 minutes at around 3:00 UTC, and has achieved a net gain of about 5% in the past 24 hours. EOS still trades around $5.20, which is a level that was once seen as relatively low, but is now greeted as a sign of recovery. EOS trading volumes hover around $451 million in 24 hours, with a large share of trading happening on BitMart. More than 45% of EOS volumes are achieved against Tether (USDT).

Coinbase Launches Crypto Gift Card Service in Europe (Hibusiness), Rated: AAA

Coinbase, the US-based cryptocurrency exchange presently offers a route for clients to buy retail products and services utilizing crypto resources, thanks to the association with a digital gift voucher startup.

Long-Term Outlook For Ethereum: August 24, 2018 (Seeking Alpha), Rated: AAA

Ethereum (ETH-USD) shed more weight in this week’s trading, on the back of reduced demand (lesser number of ICOs) and also from potential ICO cashout effects. Many investors who earned bonuses from ICOs launched in 2017 and early 2018 are still selling off their excess holdings for ETH, and then converting ETH to liquid cash. So what does the next week of trading hold for ETH?

Source: Seeking Alpha

Oxford Researcher Wants to Open World’s First Blockchain University in Malta (NewsBTC), Rated: A

Researcher Joshua Broggi envisions a new university powered entirely by blockchain technology, and is seeking accreditation in Malta to establish what will be a world’s first.

IOTA Leads the Next Generation of Crypto Investments (Filthy Lucre), Rated: A

In 2017, IOTA was dubbed by many to be the next big thing. By the end of the year, interest in IOTA had certainly peaked as large corporations like Volkswagen and Bosch signed on to develop applications based on it. With the investment of those large corporations and others, IOTA’s total market value dramatically increased from $1 billion to over $12 billion. However, the success and extended market value were short-lived as the valuation fell back to $1 billion in early 2018. The sharp decrease came in large part from concern voiced by Vitalik Buterin, the founder of Ethereum, and the internal turmoil within the IOTA Foundation. Internally, they refused to work with security researchers and experienced fighting and disagreements among their board members.

European Parliament Member Calls for New ICO Crowdfunding Guideline (BlockchainNews), Rated: B

The European member of parliament, Ashley Fox, who represents the United Kingdom in Brussels, is looking to reopen a previously muted draft proposal for initial coin offerings (ICOs). The draft was written by Fox with hopes to impose new rules for crowdfunding platforms across Europe and for other operators.

United Kingdom

$ 31 Million NEX Project Could Be Biggest Casualty of Blockchain Cuts (CoinDesk), Rated: AAA

Project Infinity, launched in May 2017 by NEX Group (formerly ICAP), could be the biggest bloodletting the distributed ledger sector has seen to date, having cost roughly $31.7 million and hemorrhaged dozens of jobs, former employees say.

In a blow for the nascent project, the results statement specifically said the investment in blockchain had reduced margins by 4 percentage points.

UK Courts Start Pilot Blockchain Evidence System (Investopedia), Rated: A

Blockchain continues to find new kinds of usage and adoptions with each passing day. While secure storage of any format of data has been tried and tested time and again on blockchain technology, the United Kingdom’s Ministry of Justice is possibly the first government authority to pilot a blockchain-based project in a bid to secure digital evidences.


Baidu, Alibaba, and Tencent block cryptocurrency forums and trading in China’s latest crackdowns (The Next Web), Rated: AAA

China is showing no intention of slowing down its cryptocurrency crackdown. In the latest, Baidu, Alibaba, and Tencent (BAT) — the three largest technology companies in  the country — are banning cryptocurrency-related activities from their platforms.

China Blocks Access to Over 120 Offshore Digital Currency Exchanges (Blockonomi), Rated: A

China is continuing its crackdown on bitcoin and cryptocurrency-related ventures. One of the leading countries in the cryptocurrency and blockchain arenas, the nation is now actively blocking access to more than 120 offshore cryptocurrency exchanges used by mainland clients.

Cryptocurrency tycoons are about to learn how rich they really are (Calgary Herald), Rated: A

The secretive bosses of Bitmain Technologies Ltd., Canaan Inc. and Ebang International Holdings Inc. — three of the largest makers of cryptocurrency mining gear — are all facing the prospect of public-market scrutiny for the first time as they pursue stock listings in Hong Kong. Bitfury, another industry heavyweight, is open to the idea of an initial public offering, though it doesn’t yet have any concrete plans.

McAfee Joins Weibo to Reach Out to Chinese Crypto Investors (cryptovest), Rated: B

Self-proclaimed ‘cryptocurrency king’ John McAfee announced he would join Chinese cryptocurrency social media platform Weibo with the aim of “softening his landing” to reach out to digital currency investors in the region.


India’s Central Bank Quietly Forms New Cryptocurrency, Blockchain Research Unit (CCN), Rated: AAA

The Reserve Bank of India (RBI) has reportedly established a new internal unit dedicated to researching and regulating new emerging technologies, specifically cryptocurrency, blockchain and artificial intelligence (AI).

Singapore Taps Blockchain Platform for Selling Tokenized Securities (CoinDesk), Rated: A

The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) are looking to blockchain to create a secure platform for selling tokenized securities.

Technology firm Anquan, consulting giant Deloitte and stock exchange operator Nasdaq will work with the MAS and SGX to develop a Delivery versus Payment (DvP) platform for tokenized assets, including tokenized digital currencies and securities assets, according to a press release. The DvP platform will be able to simultaneously transact the securities asset being traded with the funds being used to pay for it.

Securities Commission Malaysia Reviews LavidaCoin ICO for Possible Breach of Securities Laws, Project Seeks $ 1.5 Billion (Crowdfund Insider), Rated: A

According to a report in the Independent, the cryptocurrency is the creation of a controversial Malaysia socialite who is well known in the country for here battles with the tax authorities and her “excesses.” Datuk Seri Vida, aka Datuk Seri Dr Hasmida Othma, LavidaCoin is in the “pre-mining” phase now offering 153 million coins at 1 LVC  to $0.66. This will be followed by a second stage in October of offering 100 million LVC at $0.85 per coin. Total supply is pegged at 766 million, according to the “whitepaper.” The document states;

“Of course, if the entire $1.5 billion is raised in a single round of funding, then all three projects will be run concurrently.”

Zuckerberg (not Mark) signs on to advise a major cryptocurrency exchange (The Next Web), Rated: B

Mark Zuckerberg’s sister, Randi, is apparently all about the blockchain, more so than her little brother is, anyway. She has featured prominently in Huobi’s announcement of its new “expert advisory team,” alongside controversial Bitmain CEO Jihan Wu.

Latin America

Latin Americans can now spend Dash [DASH] using KRIP phones (BCFocus), Rated: AAA

Dash [DASH] is stepping up its crypto game in Latin America. Dash recently announced an exclusive partnership with Kripto Mobile Corp (KRIP), which makes cryptocurrency-enabled phones, to provide Latin Americans with an affordable way of using digital coins for daily transactions.


Iran Reveals National Cryptocurrency Features as U.S. Sanctions Sting (CCN), Rated: AAA

According to Informatics Services Corporations (ISC), a central bank-affiliated body, Iran’s future cryptocurrency is backed by Rial and is developed on the Linux Foundation-led open-source Hyperledger Fabric technology. In contrast to decentralized cryptocurrencies such as Bitcoin that are issued in compliance with a mathematical formula, Iran’s digital Rial is released based on the decision of their central bank. That said, Iranian digital currency cannot be mined, and its transaction records can only be accessed on a private blockchain.

ISC also clarified its intention to use the digital rial as an interbank payment instrument in Phase One and local payment medium in Phase Two.

Israel May Adopt Cryptocurrencies to Prevent Tax Evasion (CryptoSlate), Rated: A

The Bank of Israel (BOI) and Israel’s Finance Ministry are exploring the digital token version of a physical shekel, the country’s official currency.


Gazprom, S7 Airlines use blockchain to buy aircraft fuel (PaymentsSource), Rated: AAA

Russia’s S7 Airlines implemented its first blockchain-based smart contract for the refueling of one of its aircraft.

Gazpromneft-Aero, the aviation refueling arm of state-owned oil giant Gazprom Neft, and S7 Airlines conducted the first refueling of an S7 scheduled flight at Tolmachevo airport in Siberia, using a jointly developed blockchain-based aviation fuel smart contract (AFSC). The smart contract was completed along with Russian banking partner, Alfa Bank.


The next bitcoin gold rush is brewing — and it’s in the last place you might expect (CNBC), Rated: AAA

The next bitcoin gold rush may be brewing in the last place you’d expect from CNBC.


80 Bahamians Buy Into Crypto Start-Up (Tribune 242), Rated: AAA

BAHAMIANS are “eager” to explore cryptocurrency opportunities, a local businessman says, suggesting this was highlighted by 80 locals purchasing tokens from a cryptocurrency start-up’s Australian offering last week.

Wayne Johnson, who with Parrish Simmons is a corporate manager for the Zucaz Group that launched its Zucoin cryptocurrency token on August 15, told Tribune Business the token had increased in value by between 233-300 percent since he began promoting it last year.


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