Day: July 6, 2017

We have seen many different types of cryptocurrency ICOs over the past few years. Some of these projects focus on instant messaging applications and creating a new native token to be used as the platform’s currency. The GetGems project tried to tackle this industry but ultimately disappeared into obscurity. Status is following a somewhat similar path, yet they face an uphill battle as well. Last but not least, there is the upcoming Kik ICO.

3. GetGems

The concept of GetGems was quite simple and elegant, on paper. The team aimed to build an entirely new social messaging platform on top of the Telegram network. This meant all Telegram users could be contacted by GetGems users and vice versa. A new native currency for this platform was introduced as well, which goes by the name of GEMZ. Being able to send money to other users from within the app makes a lot of sense.

Despite raising 2,633 Bitcoin during the ICO for this project, GetGems never managed to gain any significant traction. Monetizing advertisements on the platform with GEMS would give users a stake in the total monetary value of the system. Unfortunately, that was not enough of an incentive to lure people to GetGems and away from other platforms in the long run. It does not appear the GEMZ token is traded on any exchange these days. Safe to say this project utterly failed, despite having a lot of promise.

2. Status

A few weeks ago, the Status ICO went live and effectively crippled the Ethereum network. Status is all about creating an open source client, which serves as a browser, messenger, and a gateway to a decentralized application ecosystem altogether. The goal is to target mobile users first and foremost by fully embracing available Ethereum technology. Yet another messaging platform is not necessarily something people will look forward to using, though.

During the cryptocurrency ICO, status raised close to $90m worth of Ether. A very respectable amount, even though it seems the SNT tokens are fighting an uphill battle on the exchanges right now. Making the ICO tokens tradeable quickly will always result in market volatility. It also shows quite a few investors want quick profit, rather than a successful social platform to compete with existing rivals.

1. Kik

Quite a few people were surprised to learn the upcoming Kik social messenger platform wants to host its own ICO to raise money. Given the track record of these social platforms-oriented ICOs – including the ones highlighted above – it remains to be seen how the decision will affect the platform’s valuation over time. A cryptocurrency ICO is a great way to raise money, even though these tokens are mainly a tool for speculation, rather than seeing the project succeed in the long run.

What makes Kik different from other projects is how they already have over $100m in VC backing to date. Additionally, the platform is already available to users all over the world, with over 15 million active users to date. This gives the platform a major leg up over any of its competitors in the cryptocurrency ICO space. The team is confident they can merge social interaction with cryptocurrency moving forward. Moreover, they experimented with Kik Points in the past, which provided the team with valuable feedback. Kik is in the best position to make their ICO venture succeed right now, that much is evident.

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Bitcoin.org is currently looking to pay developers and Bitcoin enthusiasts to help find bugs and improve the project.

O-systems have announced the launch of Cryptency, a cryptocurrency trading platform for online brokers. The cryptocurrency trading platform has been released following a dramatic increase in the number of forex and contracts-for-difference (CFD) brokers launching bitcoin and altcoin pairings.

Also Read: Major Russian Forex Broker Alpari Launches Bitcoin Trading Pairs

Cryptency Is Designed to Comprise a Complete Solution for Online Finance Brokers Hoping to Integrate Cryptocurrency Trading Markets

Producer of forex and CFD online brokerage solutions O-systems has launched a cryptocurrency trading platform designed for online brokers. The platform will be launched in cooperation with Vista Brokers, an international investment and brokerage company registered in the European Union and licensed with the Cyprus Securities and Exchanges Commission. The launch of Cryptency comes after the release of O-systems’ new binary options, forex and CFD trading platform, Osysfx.

Cryptency is designed to comprise a complete solution for online finance brokers hoping to integrate cryptocurrency trading markets, offering margin trading in addition to exchange trading functionality. Following six months of development, the platform claims to offer ‘in-built KYC compliance’, and dedicated custom relationship and risk management systems. The platform has been built for cryptocurrency token trading, as opposed to the CFD, binary options and futures trading platforms previously offered by O-systems.

Cryptency features charting capabilities, indicators, widgets, and can support dynamic content such as social news streaming. Although the platform will be able to facilitate both fiat and cryptocurrency deposits, Cryptency supports cryptocurrency/cryptocurrency pairs only.

The Introduction of Cryptency Follows Numerous Forex and CFD Brokers Launching Cryptocurrency Trading Pairs in Recent Months

The platform serves as a single interface for trading 860 different cryptocurrencies via bridge connectivity to many major exchanges, including Bitfinex, Kraken, and Poloniex. As such, some within the cryptocurrency community have suggested that there is little incentive to use a third party in order to access major cryptocurrency exchanges, presenting a significant potential barrier to the success of brokers who attempt to enter the cryptocurrency markets via Cryptency.

The introduction of Cryptency follows numerous forex and CFD brokers launching cryptocurrency trading pairs in recent months. In a recent interview, CEO of Blockex, Adam Leonard, discussed many of the risks associated with cryptocurrency CFDs, arguing that cryptocurrency token integration comprises a far less risky way for brokers to introduce virtual currency trading.

With Apari, Panda Trading Systems, Henyep Capital Markets Group, Ayondo, Plus500, Avatrade, FXOpen, XTB, JFD Brokers, Instaforex, and many other CFD and forex brokers introducing cryptocurrency trading pairs in recent months, it is likely that platforms such as Cryptency will lead to many more brokers offering cryptocurrency trading in a bid to avoid falling behind their competitors.

Do you think that retail cryptocurrency trading platforms will be popular among online brokers? Share your thoughts in the comments section below!

Images courtesy of Shutterstock and O-Systems

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A team of developers for game projects in eSports has undertaken to solve the problem currently faced by millions of gamers online by issuing a single token dubbed SkinCoin. This cryptocurrency could be used for trading in-game skins and clearing transactions at third-party platforms.

The project develops an exchange service with an API so that third-party websites could integrate it.

Skins are essentially in-game alterations of visual appearance of items of characters that don’t influence actual gameplay. First introduced at Steam platform as rewards, they soon became an economic phenomenon.

According to Bloomberg and analytics by Eliers & Krejcik Gaming, in 2016 alone the turnover of in-game items at third-party services has exceeded $7 billion, with some rare skins becoming collector’s items and costing up to $15,000 a piece.

Some websites even allow their users to employ skins as chips when making eSports bets or in online gambling. While this might give them a chance to make their inventory even more plentiful and increase its cost, it also poses some threat. There are known instances of skins stealing.

It all began when Valve launched a marketplace dubbed Steam Community Market so that players could trade skins for various popular games like Counter Strike: Global Offense or Team Fortress 2. It was complete with an API that third parties could use to integrate the service at their platforms.

This resulted in emergence of thousands of third-party websites that offered skin trades without harsh restrictions imposed by the official Steam’s administration. This involved applicability of skins and their prices. This, in its turn, resulted in uncontrollable expansion of the market, which, of course, invited some elements of risk.

Some users lost real-life money on skins and even attempted to sue Valve for letting third parties do what they do and indirectly benefit from their operations. Valve, on their part, started sending out cease and desist letters to such sites, but to no avail. Still, even though the entire industry could be completely eliminated by Valve discontinuing the API, the corporation opted not to do so.

All those problems caused the SkinCoin team to proceed with developing their solution. They believe that introducing blockchain to this chaotic and hardly regulated industry, they could provide security and transparency to all players involved in skin trades.

“We plan to solve the issues of skin trade on all video game sites. SkinCoin will provide security to players’ in-game assets and protect skin trade platforms from Valve’s claims. Unlike fiat money, SkinCoin is not a means of payment according to legal definition in most countries. Third party sites will be able to process trade transactions with the help of SkinCoin and still perfectly conform to Steam policies,” SkinCoin CEO Igor Solomatin stated.

The idea is fairly simple: players could use SkinCoins to trade skins for any game they like, and use the same tokens as chips or bets. In other words, SkinCoin could replace actual skins as a means of payment, which hardly was its intended function. The sale of tokens is currently in progress, and will end on July 22.

A distributed ledger task force convened by the European Union’s top securities watchdog has been extended.

Source

Bitcoin, the popular cryptocurrency has got many people coming up with different price forecast almost every other day. The price estimate ranges from a meager $1000 increase to trade at close to $4000, to $5000 in the next few months. Not to forget the overly optimistic prediction that puts Bitcoin price at $50,000 in the … Continue reading Positive Bitcoin Price Forecasts Paint a Rosy Future for the Popular Cryptocurrency

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As investors and financial planners, the market players are always looking for the most promising asset classes which can adjust trading risks and ensure good returns. One of such asset classes which can no longer be disregarded is cryptocurrencies — as the surge in their value has been complemented by an equally surging institutional adoption … Continue reading Digital Developers Fund Announces ICO for Digital Investment Fund

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World Economic Forum needs ample time to prepare to be able to lead the Blockchain revolution according to its Managing Director Richard Samans.

Two major South Korean bitcoin and digital currency exchanges were hacked in 2017. Yet, users, traders and investors continue to store their bitcoin and other cryptocurrencies such as Ethereum, Litecoin and Ethereum Classic on custodial exchanges and centralized platforms.

There exists a fundamental difference between a custodial and a non-custodial platform. Custodial wallet platforms and exchanges include centralized platforms such as US-based Coinbase and South Korea-based Coinplug, that have absolute control over user accounts, private keys, passcodes and other relevant information.

Non-custodial wallet platforms include Blockchain, the second largest wallet platform in the world with over 15 million functional wallets, popular hardware bitcoin wallet Trezor and Mycelium, that do not hold private keys for users. Any sensitive data and cryptographic keys are held by the user which can’t accessed and retrieved by platform operators.

Hence, even during an event of a security breach or a severe hacking attack wherein the platform’s security is placed under jeopardy, user accounts and wallet platforms remain safe and invulnerable to hackers. For instance, Blockchain’s wallets can be backed up with passphrases, which users can utilize to recover funds in the event of a security breach.

South Korea’s Largest Exchanges Hacked

Earlier this week, Bithumb, the largest digital currency exchange in South Korea was hacked, leading to the loss of hundreds of thousands of dollars worth of user funds in bitcoin, Litecoin, Ethereum, Ripple and Ethereum Classic.

Bithumb is one of the largest exchanges in Asia, which processes around $700 million worth of cryptocurrency trades on a daily basis at its peak. According to various bitcoin market data providers, Bithumb holds 55.1 percent of the South Korean bitcoin exchange market share, processing around $31.2 million in bitcoin trades in a day.

The official announcement from the Bithumb team revealed that the employee PC at the company was hacked, not the head office server. Personal information of around three percent of users were leaked. More importantly, $870,000 worth of bitcoin was stolen.

Bithumb’s official announcement read:

“The employee PC, not the head office server, was hacked. Personal information such as mobile phone and email address of some users were leaked. However, some customers were found to have been stolen from because of the disposable password used in electronic financial transactions.”

Don’t Store Bitcoin on Centralized Platforms, Use Non-Custodial Wallets

Centralized trading and wallet platforms such as Bithumb have severe security flaws; upon the successful execution of a hacking attack, bitcoin and other cryptocurrencies can be stolen, along with sensitive personal information of users.

Analysts and security experts encourage bitcoin traders and investors to utilize digital currency exchanges for what they are, to trade fiat to bitcoin, and move bitcoin to safer and more secure wallet platforms that do not control the private keys of users.

One major advantage of bitcoin over other currencies and assets such as fiat and gold is that users can always maintain full control over their money and wealth. Bitcoin is a decentralized peer to peer financial network and there exists no reason to store bitcoin with intermediaries and third party service providers that may jeopardize the security of user accounts and most importantly, user funds.

Only 27 out of 100 banks got ‘Honor Roll’ status during the online security test by OTA which means less than half of top 100 banks in the US scored the acceptable rating of 80% when it comes to security.

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Darknet criminals are becoming more crafty when it comes to tricking and extorting people into giving them money. Ransomware, malware, ad phishing schemes are thriving. It now appears a new darknet email spam service will stop harassing users if they pay a small Bitcoin fee. This is an interesting model, but its success remains to be seen.

Paying Criminals to Stop Spamming

Most consumers around the world have dealt with email spam campaigns before. Very few consumers know how their email addresses got into the hands of a spammer. Spam emails are a lucrative business and they are now a primary distribution method for ransomware along with other types of malware. Some criminals are trying to take things to a different level.

The All Base service, which resides on the darknet, is new project. The “company” specializes in sending out global spam email campaigns for a fee. Services such as these are not all that uncommon, as the spam-as-a-service industry is increasingly popular. All Base is also providing a secondary service, which effectively allows recipients of spam emails to have their email address “removed” from the campaign.

The All Base service is the main source of XMPP email spam on a global basis. This is remarkable considering how the darknet platform has only been around for just over three months. Criminals are attracted to this platform because it is capable of sending out more spam emails than any of its competitors. Competition in the spam-as-a-service industry is heating up.

People who use the All Base spam service can target four main types of users. This degree of customization shows there is a growing demand for this type of service. Sending out email campaigns to these groups of users will cost up to $100, which needs to be paid in Bitcoin. Considering how Monero provides more anonymity and privacy, it is surprising that operations like this still choose Bitcoin.

Now the recipient of these spam emails can unsubscribe from the list. It costs $25 – to be paid in Bitcoin – to ensure this happens. Considering how people on the spam list can receive over 100 spam messages on a single day, it may very well be worth paying this small amount of Bitcoin to no longer get harassed. This particular project tries to make a profit by catering to both senders and recipients of spam emails.

However, there is no real reason to pay the Bitcoin amount right away. Most XMPP email clients allow users to block incoming spam, as documented by BleepingComputer. This should prevent most, if not all, spam messages from getting through. If things do not improve after turning on this setting, paying the $25 worth of Bitcoin is still an available option. We see some very intriguing trends in the world of cybercrime these days.

Bankers and industry leaders in the Texas panhandle have recently been discussing what to do about blockchain technology and bitcoin. They are curious how they can get banks involved in leveraging cryptocurrencies, because they do not want to be left in the dust. However, some of them are also scared for the banking industry. In their eyes, bitcoin has the power to undermine the banking system and reshape the financial landscape.  

Also read: Major Darknet Marketplace Alphabay Goes Down, Exit Scam Speculations Arise

In an Amarillo Local News article published yesterday, Bank of Commerce President Alex O’Brien commented on bitcoin. “I’m scared for the banking industry because I think that Bitcoin and Litecoin, the concepts behind them and the way the blockchain works, is something that could knock banks out of the game.”

But even though O’Brien is worried about the future of banking, he mentioned he really likes the concept of blockchain-based currencies.

It’s a really right-minded concept if you think about it — it’s international currency,” There are no borders and it’s not controlled by anyone, which is neat too. I’m a fan and hopefully we can find a way to get involved.

To Fear or Not to Fear Bitcoin; Average Nerds on the Street Versus Bankers

Another banker at the Amarillo National Bank does not harbor the same fears. He recognizes the future potential of digital currency, though. Vice president Stewart Dodson of Amarillo Nation Bank said the dark, shady roots of bitcoin will be a deterrent for future adoption. He said bitcoin’s past use to facilitate dark web transactions have tainted the currency’s appeal. Now it will harbor that stigma forever.

Even though Dodson sees bitcoin as tainted, he admitted a “digital currency” will eventually be adopted by the mainstream. He mentioned various payment apps like Venmo and Applepay could win the race, even though they are not cryptocurrency-based platforms.

Jon Laur, chief technology officer for EnergyNet — an Amarillo-based oil and gas auction and sealed bid transaction service also chimed in on the discussion. He said banks need to get ahead of the game. He mentioned that if banks do not have someone on the payroll who knows more about cryptocurrency than “your average nerd on the street,” they will be left behind.

Future of the Banking Industry

In the final analysis, the bankers concluded digital automation could change the face of the industry. The convenience of digital currencies makes jobs expendable, and could replace some banking roles. The article detailed, “In a region with 6,600 financial sector employees as of 2014, according to the Texas Workforce Commission, lower-level positions could be eliminated or simply not added as banks invest more in Internet services.”

Do you think the banks will adopt bitcoin, or are some of these bankers right in believing bitcoin will displace them?  Let us know in the comments below.

Images via Shutterstock 

Bitcoin is cool, and you know everyone wants in – even the ones who say they don’t. Show the world how cutting-edge you are with a bitcoin T-shirt, hoodie, bag, key-ring, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, a payment system that makes people say “wow!”

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Although Ethereum’ s future is still uncertain, several indicators show that its core technology is moving in the right direction.

The world of Bitcoin and cryptocurrency is always filled with interesting surprises and turnarounds. Earlier this week, most of the cryptocurrencies suffered from a major downturn. Luck has turned in favor of the patient holders, as nearly all currencies in the top 20 have turned green again. Not all of the top currencies and assets recorded equal gains as we will explain below.

The Cryptocurrency Markets Cannot be Kept Down Forever

It is not uncommon for cryptocurrency markets to see highs and lows in the same week. Even though Bitcoin volatility has become less of a factor over the past few years, the Bitcoin price still dictates what happens to the rest of the markets. Last week, the Bitcoin price trend was bearish, and all other major currencies recorded small to significant losses. However, these setbacks are only a momentary snapshot of how cryptocurrency markets behave over time.

When we look at those same charts today, it almost looks as if there were no losses a few days ago. Nineteen out of the top twenty cryptocurrencies are in the green, with the exception of EOS. That is not a big surprise as EOS only recently concluded its ICO and immediately got added to multiple exchanges. The token will see some major volatility until everything calms down in a few weeks from now. Other than EOS, everything is looking rather peachy for the top currencies.

Not all of the top currencies record equal gains. Bitcoin is going up in value, which often allows other currencies to do the exact same. However, Ethereum “only” gained 0.91%, whereas NEM shot up by 19.22%. The biggest gain in the top 20 belongs to BitShares, with a 22.74% value increase. Most currencies are in the single-digit gains before the decimal.

Looking at the bigger picture, there are other currencies going through a value decline right now. Most people will have never heard of SaluS, yet it is worth $26.59 despite a 36.29% loss over the past 24 hours. Even fewer people know about Veritaseum, let alone why it would gain 79.98% in value. This just goes to show there is a lot more to cryptocurrency markets than just supply and demand. Lesser coins and tokens will often go through pump-and-dump cycles. It is possible that is exactly what is happening to some smaller currencies with large gains and losses.

This is also an illustration of why trading based on emotions is a bad idea. Markets can turn sour for days and recover all losses within the next day. They can equally double in market cap and see the gains wiped in a few hours. Events like this make it difficult to trade rationally. However, there is no reason to panic just because the market is having a less-than-stellar day. If the currency or token belongs to a promising project, things usually will recover with time.

Cryptocurrency ICO tokens should never be traded based on emotion either. Despite EOS showing a double-digit price decline right now, a lot of investors will hold onto their balance for quite some time. Most of the projects go up in value as time progresses. Selling tokens right when they hit an exchange is a decent way to make a quick buck. However, if you were to hold on to these tokens for a few months, they might double, triple, or quintuple in value. Cryptocurrency markets are constantly evolving, and price shifts will take place on a nearly daily basis.