Day: May 24, 2018

Alexander Vinnik, the alleged operator of BTC-e cryptocurrency exchange, has confessed to the laundering of billions of US dollars worth of Bitcoin. According to Interfax, the admission of guilt has been received by the Prosecutor General’s Office of the Russian Federation and is being transferred to the Moscow police department in the Ostankino district.

BTC-e was a major Bitcoin and cryptocurrency exchange from its launch in 2011 until its forced closure in July 2017. United States authorities seized the website’s domain name and 38% of all customer funds on 28 July 2017, and since then the exchange has been closed. BTC-e was indicted for operating an illegal international money laundering scheme, including laundering of Bitcoins from Japan-based exchange Mt Gox hack, the largest Bitcoin theft in history.

Three days before BTC-e was shut down and customer funds were seized, Vinnik was arrested while on vacation in Greece at the request of the United States. He was accused of laundering between USD 4 billion and USD 9 billion in cryptocurrency. He has already been hit with a fine of USD 12 million from FinCEN in the US.

Although BTC-e originally released a statement saying Vinnik was not an employee of the exchange, he has since admitted that he was a technical consultant for the exchange, and now admits he was in charge. He has sent four letters admitting his guilt to the head of Russia’s ministry of internal affairs, the ministry’s chief investigator, and the Prosecutor General of Russia. He claims responsibility for RUB 750 million worth of damage to Russian citizens between 2011 and 2017 as well as for a large amount of computer information fraud.

He has offered to help Russian authorities with the investigation and this has apparently almost cost him his life. Local media reported that Russian criminals conspired to poison him before he could get to court in Russia and testify. Since the poisoning attempt, he has been put under a special lockdown at the Greek prison where is staying; no one can come into contact with him or give him food besides the prison guards.

The United States and Russia have been fighting for the right to extradite Alexander Vinnik to their respective countries. In January 2018, he submitted an application for asylum in Greece, saying the charges were politically motivated. Before he can be extradited, the asylum request must be decided on by the Justice Minister of Greece.

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Two financial institutions are set to test a regulatory platform set up by the Bank of Russia that aims to make ICOs more transparent and secure.

The U.S. Justice Department has opened a criminal investigation into cryptocurrency price manipulation purported by market participants. In the meantime, Bitcoin continues to move lower towards the $7,000 line in an overall gloomy week for digital currencies.

U.S. Justice Department Launches Criminal Investigation Into Cryptocurrency Price Manipulation

U.S. federal prosecutors are working with the Commodity Futures Trading Commission (CFTC) in a criminal probe that focuses on price manipulation schemes, including spoofing – a widely practiced form of price influence in which traders flood the market with fake orders in order to bait other players into taking the opposite side – and wash trading, in which the cheater trades with themself to create a false impression of market demand and trading volume.

Extreme market volatility and lack of regulatory oversight over trading platforms have led the justice system and financial watchdogs in the U.S. to worry over the cryptocurrency market and potential criminal market plays. China has cracked down on its cryptocurrency ecosystem, particularly Bitcoin miners, trading platforms, and digital currency payments solutions providers, over similar concerns, but also in order to keep its centralized financial system unchallenged.

New regulatory actions promoted in Japan, South Korea, India, Thailand, the Philippines, and other countries, may have helped drown the price of Bitcoin in 2018. Bitcoin came from its all-time highs in the $20,000 area only to be pulled down as the new year promised more government coordination regarding cryptocurrencies.

Gemini Trust, the New York-based digital asset exchange led by the Winklevoss twins, has recently hired Nasdaq Inc. to conduct surveillance of cryptocurrency trading on their platform. Cameron and Tyler Winklevoss have called for the creation of a self-regulatory body made up by trading platforms within the industry.

Cryptocurrency trading is fragmented on dozens of platforms across the globe, many of which not even registered with the relevant financial watchdog. In the U.S., the CFTC is capable of imposing fines on spot market fraud even though the agency does not regulate it.

John Griffin, a University of Texas finance professor who has studied cryptocurrency market manipulation told Bloomberg that limited oversight of digital currency trading makes it a target for crooks.

“There’s very little monitoring of manipulative trading, spoofing and wash trading. It would be easy to spoof this market.”

Price manipulation within the cryptocurrency market, whether it is spoofing or wash trading, could break investor confidence in such a young niche trading asset. Market capitalization has been in decline since early May, having lost nearly $150 billion from those highs. Criminals engaging in such practices profit from market volatility and they may have a direct role in the current market sentiment.

Image from Shutterstock

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Bitcoin markets are under a bearish market sentiment with prices undergoing strong selling pressure.  Today’s trading session had traders experience major breaches in Bitcoin’s price, with prices continuing to be following a downward spiral.

The day’s signals

1. Bitcoin markets continue experiencing breach after breach with no sign of support being present.
2. BTC/USD levels now reach USD 7,300 price levels only a day after USD 8,000 price levels were breached.
3. Markets aren’t appearing to take much consideration for positive price movements. Resistance appears to be bringing selling pressure even after price falls.

GDAX BTC/USD charts are showcasing the disdain traders have towards any and all positive movements. The market’s sentiment has worsened considerably, and traders don’t seem to think twice when giving in to selling pressure. Large sell offs have dominated the day’s course, making up a significant portion of the day’s trading volumes in spite of the largest spikes happening momentarily. It’s no wonder that periods through which the most selling pressure was expressed accounted for the bigger chunk of the day’s trading volumes.

OKEX BTC/USD weekly futures charts are showcasing how futures markets are pricing in for Bitcoin at lower prices than spot trades. This is a trend that was kept up throughout the day. Larger downward spikes continue being reflected with accuracy on futures markets. All that while futures markets appear to show hesitation when it comes to following. It is clear that the shift in the market’s sentiment has also lead to an overturn of the mood in futures markets.

Overall, a very sharp shift in the market’s sentiment is now being embraced by traders. Bitcoin markets are struggling to maintain any level of support that could prove viable with each bearish breakout followed by another. Markets are not looking good with traders drifting away from the potential of a recovery.

For an improvement in the market’s outlook, a lot of liquidity would have to come in the form of support. The need for such moves becomes apparent in trading sessions like the more recent one. Lower trading volumes are known to  leave markets susceptible to further breaches.

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On Wednesday, May 23 the San Francisco based exchange Coinbase announced the acquisition of a decentralized digital token relay-trading platform called Paradex. Alongside adding the decentralized exchange (Dex), the firm has also revealed it is retiring the name GDAX and that platform will soon be known as ‘Coinbase Pro.’

Also Read: Markets Update: Stormy Weather Continues to Plague Cryptocurrency Traders

Coinbase Exchange Acquires Decentralized Token-Relay Platform Paradex

Coinbase has revealed some interesting decisions today as the cryptocurrency exchange and brokerage service purchased a peer-to-peer Dex that allows users to swap “hundreds of tokens” like ERC-20s. According to various reports, Coinbase plans to “enhance” the Paradex protocol and launch the service to international customers located outside of the U.S. Reuters details that Coinbase purchased the platform for an undisclosed sum.

Basically, the Paradex development team of ten, explains the platform allows the peer-to-peer relay of ERC-20 tokens on top of the Ethereum blockchain. The system is entirely decentralized by utilizing the 0x protocol which provides “handling settlement without necessitating user accounts or taking custodianship of users’ funds,” explains the Paradex team.

Today the Paradex website states:

We know we’ve been a little quiet, but we’ve been hard at work, and we’re incredibly excited to share that Paradex is joining Coinbase — While we work to integrate with Coinbase, the Paradex app will be temporarily unavailable, starting today, May 23, at 3pm ET. This doesn’t change our commitment to our users — We’re still working hard to build the best relayer, now with a larger team and more resources.

GDAX Will be Overhauled Into ‘Coinbase Pro’

Coinbase also told the press it would “eventually” provide Paradex services to U.S. customers but it needs to make compliance changes first. The firm headquartered in San Francisco also announced the same day that it was completely overhauling and rebranding the GDAX exchange. This summer GDAX will be known as ‘Coinbase Pro’ the company explained on Wednesday.

David Farmer, the General Manager of Coinbase Pro, detailed the trading platform will be more intuitive with a simplified deposit and withdrawal process. Further, the exchange will offer improved charts and access to historical data while also offering a new portfolio feature called ‘My Wallets.’

“As the decentralized ecosystem advances, we expect there will be many more opportunities for customers to interact with digital assets in new and unique ways,” Farmer states.

The news follows the trading platform’s plan to offer institutional custody services, and purchasing the website Earn.com.

What do you think about Coinbase purchasing Paradex? What do you think about GDAX turning into Coinbase Pro? Let us know your thoughts in the comments below.

Images via Shutterstock, Coinbase, Paradex, and GDAX blog. 

Been looking for a cryptocurrency exchange? Look no further, Bitcoin.com has you covered with our comprehensive list of global exchanges.

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The U.S. Department of Justice is reportedly investigating cryptocurrency traders who may have manipulated the markets using old-school tricks.

Regulatory changes will affect the cryptocurrency and blockchain ecosystems in the future. The Monetary Authority of Singapore is looking to make some changes. A consultation paper has been presented to make the exchange ecosystem more competitive. This is positive news for the cryptocurrency ecosystem as a whole.

Improving The Position of Singapore

When Singapore introduced its blockchain-related exchange regulation, an important first step was taken. The introduction of one set of rules for every company allows the industry to boom in the country. However, there are still a fair few improvements to be made in this regard. These existing rules are somewhat harsh when dealing with smaller players.

As such, the Monetary Authority of Singapore wants to shake things up. Their new consultation paper discusses a three-tiered system of regulation. Different market operators pose different risks and have different requirements to adhere to. Making this regulatory ecosystem more competitive and attractive will bring more companies to Singapore.  The MAS explains its decision as follows:

“MAS has observed the emergence of new business models in trading platforms, including trading facilities that make use of blockchain technology, or platforms that allow peer-to-peer trading without the involvement of intermediaries. As the current RMO regime has been in place since 2002, it is timely to review the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”

Improving the Cryptocurrency Exchange Ecosystem

Under the current rules, there are two categories. On the one hand, there are the approved exchanges. Additionally, there are recognized market operators. With the new tiers, smaller market operators will have an easier time setting up their business in the country.

More specifically, tier 3 exchanges will have reduced capital requirements. Additionally, they will have far less red tape to deal with, which can only be considered to be a good thing. These tier three operators can also engage overseas regulated clearing houses to expand their operations. These changes have yet to be approved by the government prior to becoming law, though.

Any market operator growing in size will need to deal with the next tier of regulatory measures. It is an interesting structure which will allow for more competition. Singapore is taking interesting steps in this regard. Other Asian countries such as China and India aren’t as forward-thinking when it comes to cryptocurrency and exchanges. As such, the region may attract more companies in the near future.

Image from Shutterstock

The post Singapore Looks to Attract More Crypto Exchanges With Regulatory Revamp appeared first on NewsBTC.

New York, 24 May 2018 –  Elinext, a blockchain solutions developer and a highly reputed IT company shares its view on the ICO market potential for the rest of the 2018 year. With cryptocurrencies dominating a global market and every possible media channel bursting with tempting numbers as a result, it is hard to stay indifferent to the topic these days.

Although people who are getting hooked on the idea of starting their own crypto journey become discouraged rather quickly. While major players are getting even further ahead, it seems like the market is overcrowded and it is already late to book your ticket to the “business of tomorrow”. Even though we are not denying that this business requires deep knowledge for successful navigation, we are actually very positive about anyone who is following the topic and wants to finally sit in the driver’s seat.

Since we live in the era of startups and crowdfunding campaigns, ICO as an actual successor that follows many of the same basic principles. Therefore, no one should be intimidated by it. To clear many questions a lot of newcomers may have, we present you five tips to help you launch a successful ICO.

5. Set your goals

Every campaign has its objectives, and ICO is not an exclusion. If you want to get ICO investors’ attention and build their confidence in your project, you should make your goals clear and easy to understand. The best way to do it is by preparing a white paper and a roadmap.

• White paper — this blueprint contains all important technical features of your project: goals, timeframe, etc. This way investors will be aware of your aims, as well as help them to value the potential of your company.
• Roadmap —  this is a document that captures the timeline of all your project’s activities. It marks every step of your future campaign: from budgeting and PR to price determination and security audits.

4. Develop a pricing strategy

There are four basic pricing methods that all depend on your company’s personal strategy:

• Fixed price — the price for tokens is set, but investors can only trade them after a freezing period.
• Undetermined price — the price for tokens is not set, and every investor receives a specific amount of tokens, depending on their initial contribution.
• Dutch auction — the very first coins are the most expensive ones, but their price gradually reduces during the investment period.
• Price rise ICO — the most nimble investors are getting the best price for your tokens

3. Make investors happy

We all know that “nothing ventured, nothing gained”, however risk-assessment is something investors take seriously. Make them feel safe, by using one of these precautionary techniques:

•    Bonuses — investors who were supporting you at the very beginning of the campaign, should always get additional discounts or benefits in the future. The more they give, the better return they get.
• Fund return — it is obvious that you cannot promise a 100% return on someone’s funds, but you should think about some kind of return mechanism for your company.
• Escrow wallet — multi-signature digital wallet that displays the names of all key holders, like project outsiders, and serves as guarantor of other members’ investments.

2. Topnotch team

While building a competent team of professionals is a necessity for any successful business, it could not be truer if we are talking about an ICO. By gathering a group of highly skilled individuals with deep knowledge of the industry, not only you raise your chances for success but also become more trustworthy in investor’s eyes.

Your team should also be respectfully represented on your website. Every member has to have his photo and job position as well as some small bio and their previous projects. Also, add their links to social media (LinkedIn and Twitter preferred) — this way your website becomes more transparent. If you convince partners to trust your team, the crowdsale phase will not be a problem.

1. PR is the key

Since there is a plenty of active ICO campaigns currently on the market, PR strategy should be your striking force. Here are the examples from a huge pool of reliable actions that can help you stand out:

• Often updates — this shows that you are constantly following your project and always open for communication.
• Publications in professional communities – take a huge part in specialized forums, thematic subreddits, and quora discussions.
• Separate yourself from negative — due to the lack of regulations, many ICO scams are getting exposed every day. Remain consistent and transparent in order to differentiate yourself from that type of businesses.

Additional recommendations

• In your pitch, try to create a FOMO (fear of missing out) to strike a successful round of funding.
• Find a domain on resale that already has some strong domain authority.
• Initial investment from another blockchain investor could lead to a rewarding round.
• If you find a unique solution to a real-world problem, it will be easier to get additional attention and support.

Practice makes perfect, and you will need to work hard if you want your name to become big. We advise you to always experiment with your strategy but also build it on the strong cases of the past. This way you will not repeat any previously made mistakes while remaining innovative and outstanding.

Bitcoin looks set to test $7,000 in the next 24 hours, courtesy of a bear flag breakdown on the technical charts.

People looking for any positive momentum in the cryptocurrency industry may not be all that pleased with how things are going right now. Everything is in the deep red, with some currencies noting rather spectacular losses. The biggest concern is the Bitcoin price, which has effectively dropped below $7,500 for the first time in five weeks.

The Bitcoin Price is Getting Battered

It is evident things are not going according to plan as far as the Bitcoin price is concerned. While there has been some interesting momentum in early March and throughout late April and early May, things have fallen apart once again. More specifically, the Bitcoin price has roped below $7,500 for the first time since April 12th.

This is not a positive development by any means. While the bears are thoroughly enjoying this new trend, the rest of the cryptocurrency community isn’t necessarily happy with this current development, for obvious reasons. At this point, it seems highly unlikely the Bitcoin price will hit $10,000 anytime soon, even though it successfully did so in late March.

Due to this latest Bitcoin price decline of 5.76%, it remains to be seen where the bottom lies exactly. Some people speculate the Bitcoin price will drop to $5,500 or even lower in the coming days, although it remains to be seen whether or not this can effectively be reached. Most cryptocurrency holders don’t hope to see such a low Bitcoin price in the near future, but it is evident there isn’t much that can be done about this current trend.

Even though the Bitcoin trading volume isn’t declining all that much lately, it seems the sellers are in full control of this market for quite some time to come. With $6.33bn in trades over the past 24 hours, the sellers vastly outweigh the number of buyers. It is still possible this situation will turn around in the coming days and weeks, but for now, the momentum will remain bearish.

Looking over the exchanges ranked by Bitcoin trading volume, Bitfinex is clearly in the lead right now. Binance is not that far behind with its USDT pair OKEx closes out the top three with another USDT market. Huobi and bitFlyer are also in the top five, which means there are two fiat currency pairs and three USDT markets in this top five. An interesting mix, although not something that will improve the Bitcoin price anytime soon.

It is evident volatility remains the name of the game in the world of cryptocurrency. With the Bitcoin price in the dirt, all alternative currencies are suffering as well. It will be interesting to see how things evolve in this regard. With all of the panic selling taking place right now, there will be a lot more losses to contend with moving forward, for obvious reasons.