Day: July 24, 2018

In recent months, crypto exchanges have adopted new business models as they strive to stay ahead of their peers and bring in more users. One of these is the trans-fee mining model, which rewards users with a native exchange token for every ETH or BTC in charges they incur on the platform. This model took the world by storm when Singaporean exchange CoinBene used it to overtake Binance and become the biggest crypto exchange last month. This is one of the reasons that crypto indexing site CoinMarketCap gave for its new approach that will see the site become more inclusive and add more metrics such as 7-day trading volume.

The Shifting Industry Landscape

There were three emerging issues that led the site to rethink its policies, the first being the relatively new trans-fee mining model. This model, which was introduced by Chinese crypto exchange FCoin, has caught on despite condemnation from some industry leaders such as Binance founder Changpeng Zhao. It involves the rewarding of users with a native token which acts as an incentive for them to trade more. Some of the exchanges that have embraced it include CoinBene and the Hong Kong-based Bit-Z, all of which saw a tremendous increase in their trading volumes as a result. According to a blog post on CoinMarketCap, this method may lead to back-and-forth trading and automated trading through the use of bots, all of which could significantly affect its ranking system.

With increased competition among exchanges, some exchanges have been forced to charge extremely low fees to stay relevant and competitive. These fees sometimes fluctuate to reflect the market activity and are in most cases tiered by account type, with the big volume traders getting better rates. This model will be scrutinized by the indexing site moving forward.

There are currently over 1,500 cryptos, making competition for listing fierce. This has led some crypto projects to employ devious and dishonest means to ensure their trading volumes justify their listing. These methods include artificial volume, which is created by the projects themselves, and wash trading, in which traders place orders and then purchase them to give the false impression of a robust market. CMC will closely monitor for such activities to ensure that the data presented to its users is accurate and hasn’t been manipulated.

One of the changes implemented is the removal of a minimum volume requirement for exchanges. Previously used to filter out the smaller exchanges and make the rankings more relevant, the requirement was dropped on Monday, July 16, according to the site. CMC also reiterated its dedication to thorough research and background checks for exchanges to ensure that fraudulent exchanges are not listed.

CMC will also add to its toggles, which allow its users to filter for the data that’s most relevant to them. Users will now be able to search for the exchanges they have accounts with, those that trade specific coins, and those that use certain business models such as the trans-fee mining model. It will also introduce new metrics such as 7 and 30-day volume as well as exchange establishment dates, allowing its users to assess a given exchange’s consistency.

The Chairman of the Wisconsin state Libertarian Party and candidate for state Governor Phil Anderson has announced he is accepting campaign donations in Bitcoin for the 2018 Wisconsin gubernatorial election.

Loosely defined legislature

His position has sparked discussion due to mixed interpretations of Bitcoin and cryptocurrency donations to election campaigns in the United States. Currently, a 2014 advisory opinion from the Federal Election Commission (FEC) offers a loose guideline for the matter.

The FEC concludes that Bitcoin is “money or anything with value”, which allows it to fall within the act that defines contributions as “any gift, subscription, loan, advance, or deposit of money or anything of value made by any person for the purpose of influencing any election for Federal office”.

Furthermore, the Bitcoin received by campaigns can’t be spent directly, it must be “liquidated” and then funds deposited into accounts. However, this hasn’t chimed with the Wisconsin Ethics Commission (WEC) who is of the belief that donations such as this appear to be illegal.

In April, the WEC was approached by the state’s Libertarian Party to provide “formal guidance” on the matter and then later in May, the chairmen of Senate and Assembly election committees were asked by the WEC to “provide clarity to candidates and committees as to whether they may accept contributions of cryptocurrency”.

According to Wisconsin local media outlet Journal Sentinel, the WEC has written “allowing cryptocurrency contributions presents a serious challenge to the commission’s ability to ensure compliance with state law”.

State of affairs

At the end of May, Colorado state had made proposals for a new set of rules regarding financing campaigns, which included a section on cryptocurrencies. In 2017, the Kansas Governmental Ethics Commission ruled out the possibly due to it being highly risky, with Commissioner Jerome Hellmer saying, “It’s totally contrary to the transparency we’re asking for our political system to provide to the public.”

He also cited fears of “unidentified lobbyists” being in the position to influence local elections, which he believed was a strong possibility, also adding, “If you think the Russians affected the presidential elections, just wait. This is what’s going to happen.”

Earlier in July 2018, 12 Russians were indicted for interfering with the 2016 US presidential elections; the alleged hackers supposedly stole the information of over 500,000 voters and hacked email accounts of volunteers and employees of Hilary Clinton’s campaign.

In this instance, it was revealed that over USD 95,000 was allegedly laundered via Bitcoin to fund the operation, purchasing hardware and utilized to buy servers, registry domains and other preparations.

It comes as no surprise that now the WEC will be approaching the matter with a greater cynicism than before, and is challenging the integrity as well as the security of Bitcoin donations. Though this hasn’t deterred Anderson who says that he and the Libertarian Party will “push all the way back” should the WEC file a complaint.

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In case you haven’t noticed, Bitcoin is rallying pretty hard right now. For Brian Kelly of BKCM LLC, these moves are likely to lead to a renewed bull run.

Brian Kelly: BTC Price Driven by Speculation on ETFs, Institutional Money, and Web 3.0

After a pretty lousy start to the year, Bitcoin prices appear to be resuming an upwards trajectory. The price has surged from below $6,000 in late June to over $8,243 at the time of writing.

Crypto investment and trading expert Brian Kelly believes the gains are likely to continue too. The BKCM LLC founder and CEO spoke to CNBC’s “Fast Money” on Monday. During the segment, he touched upon the bear market that some in the space are saying is now over:

“There were a lot of big sellers out there… That appears to be over.”

Kelly went on to claim that the digital asset market was a “reflexive one”. By this he means that when the value begins to climb, more people want to buy Bitcoin and this leads to higher prices along with even greater demand.

According to Kelly, there are three reasons behind the current price moves:

• Bitcoin ETF.
• Greater murmurs from institutional players.
• Web 3.0.

First and possibly most important to the immediate price rally is renewed optimism for a potential Bitcoin ETF. It’s widely believed that the U.S. Securities and Exchange Commission (SEC) will decide if they will approve the most promising of the many proposals they have received. Whilst Kelly doesn’t think that the U.S. financial regulator will green-light the VanEck proposal he does go on to state:

“But that doesn’t stop speculation on that.”

Another important factor playing into Kelly’s belief that an even larger price move is on the horizon is increased institutional interest. He told CNBC:

“I can tell you from the calls that I’m getting, people that looked at [bitcoin] in December and didn’t like the price are coming back now and saying, ‘Alright, this thing is not going away. We need to understand what it is. Where does this asset class fit in to our portfolio?’”

Finally, Kelly believes that cryptocurrencies are an important factor in creating what he and many others call a “Web 3.0”. He refers to the outcome of the current transformative process as “a new internet, an improved internet.”

Cryptocurrencies will be a crucial part of this. They are already allowing the sending of value across global networks. The CEO continued:

“And that is exactly why institutions are starting to get into this. They’re seeing how this fits into a portfolio of web 3.0 stocks.”

Featured image from Shutterstock.

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This article originally appeared on Bitcoin Magazine.

Insurance companies cover all sectors of the economy, from the manufacturers to the financial industry and even personal property. They have, however, steered clear of the crypto industry, and with good reason. The unpredictability of the industry is comparable to none, from the volatile nature of cryptos which shed and gain billions in minutes, to a worryingly increasing number of hacks that have seen billions of dollars lost without a trace. This is all changing now, with insurers recognizing a huge untapped market that has billions of dollars at its disposal and whose unpredictability makes their services even more relevant. While still in its infancy, crypto insurance is rapidly attracting some of the biggest names in the insurance industry.

The Reward Justifies the Risk

Crypto insurance would have sounded insane just a year ago, what with the wild market in which gaining or losing a billion dollars took just minutes. Some huge heists in which hackers made away with billions of dollars also led many to believe that only a fool would offer insurance products for this industry. This has rapidly changed, and according to a report by Bloomberg, some of the biggest names in the industry are engaged in a tight race to become the market leaders in this new field.

The world of insurance is all about placing bets that one can get gains while avoiding pitfalls. Aon, a London-based insurance firm, is convinced that it can do so. The firm boasts of being the market leader in this sector, with at least 50 percent of the market for crypto insurance. Aon has in recent days made changes to its policy form to speed up the underwriting process for companies. It has also amended some of its general company policies to include crypto companies.

German insurance giant Allianz has also been offering such services for over a year now, with the company’s spokesperson Christian Weishuber stating that this is going to be a huge market.

Digital assets are becoming more relevant, important and prevalent on the real economy and we are exploring product and coverage options in this area.

Other companies that have begun to provide such services include AIG, Chubb, XL, and Marsh and McLennan. According to Bloomberg’s report, this is a service that not many are willing to talk about, with most of the companies declining to comment on their current arrangements. AIG revealed that it’s held several meetings with crypto trading platform providers and crypto custodians to discuss policies, but declined to comment on how much in crypto-related premiums it’s taken in.

Alluring as insurance may be for crypto startups, it’s still very expensive. This is because the industry is considered to be one of the riskiest, and the insurers only cover crypto startups when they are certain the cost justifies the risk. In some cases, crypto startups are charged up to five times as much as other companies. This hasn’t stopped the startups, though, with Aon as well as Marsh and McLennan revealing that business has been booming this year.

The insurance companies also have to be selective with the startups they insure, as they run the risk of these companies overstating the amount of crypto insurance they have.

According to Aon’s practice leader, Jackie Quintal:

Quite honestly, it’s something insurers are aware of and cautious about too. They don’t want an advertisement to say, ‘We are insured with ABC insurance company’ and for it to be inaccurate or misleading. It’s definitely a concern.

Despite an increasing number of cases of crypto theft and exchange heists, no insurer has had to pay out any policy claims this year.

The Earth Nation Alliance is a movement of paradigm shift communities embodying sustainability and permaculture. Its proponents believe that our world can gracefully transition from scarcity based economics, non-consensual governance, and pyramidal corporate structures into a planetary culture that truly supports and provides for all people, regardless of color, class, or creed. To help alleviate environmental damage, exploitative resource extraction, extreme poverty, urban pollution, and a lack of thriving wage jobs, Earth Nation has introduced enterprise business solutions for systemic issues with 30-100% annual return on investment.

Bolstering this mission, Earth Nation has launched EarthCycle (ECE) Coins on a decentralized platform, backed by the exponential growth rate of real world business revenues. There is commitment to use 100% of profits from ECE’s Coin launch for investment into profitable businesses that are solving systemic issues, fast tracking the long term vision of a clean green planet with happy, healthy inhabitants.

The ECE Coin pre- sale has started on July 1 and will commence until July 31, 2018.

Cryptocurrency Backed by Something Real

Earth Nation has four primary pilot businesses ready to establish additional branches with EarthCycle funding and many more businesses after that. All of these businesses have agreed to all EarthCycle terms and have been in profitable operation for many years. The annual return on investment from each business is from 25% to 50%+.

Pilot 1: Pesco-Beam. An international oil processing company that converts dirty toxic oil into clean reusable oil without creating toxic emissions or pollution of any kind. Oil processing plants run in the 10 to 30 million dollar range and produce 6-18 million annual profit after 6 years of operation. Click here for more information on Pesco-Beam.

Pilot 2: Carbon-Cycle. A USA based company that is a part of an overall umbrella corporation specializing in business solutions for water, energy, and food. CarbonCycle has created a series of patented technologies that maximize the output of each CarbonCycle facility while reducing all toxic emissions to 0%. The annual ROI on our 1 to 3 Million dollar facilities runs from 25-70%. Click here for more information on Carbon-Cycle.

Pilot 3: Ecobuilt. By utilizing the leading edge of vertical aquaponic and greenhouse technology we are able to produce multiple times the food at a fraction of the cost of traditional agriculture. Each Ecobuilt installation pays for itself in 6-12 months in most western countries with the exact ROI being relative to the price of food in the region around each installation.

Pilot 4: Chrysalis. A modern medical treatment facility that uses Harvard research backed proprietary technology along with stem cell therapy, scalar and plasma technology in combination with a full spectrum of holistic care practices to treat a wide array of disorders as well as to increase longevity and overall health. Treatments are covered by 95% of insurance in the USA. Existing treatment centers of similar nature charge $1,500 to $2,500 a night per patient with less than $300 in costs per night.

Play the video to get convinced on the EarthCycle advocacy: https://www.youtube.com/watch?v=12QqZZ3CYtM&feature=youtu.be

Exponential Growth Rate Without Speculation

EarthCycle is investing all of the profits from the ECE Coin sale into ECE businesses, and in the future, other businesses that match their criteria. They are using 80% of returns from ECE businesses to invest in more businesses that are helping the world while making great returns.

ECE will use 20% of all returns from ECE businesses to buy the ECE Coin off the market and burn/destroy it. This market factor in combination with demand stimulated by ECE businesses and ECE voting platform gives the currency the potential for an exponential growth rate without speculation.

Estimated projections based on our ECE business profit history and historical market data indicate a potential ECE Coin growth rate of over 100 times in the next 20 years.

During the ECE pre-sale lasting until August 1, 2018, Coins will be sold from for 0.76 USD Equivalent in BTC or ETH for volume orders under 10000 ECE Coins. For orders over 10000 ECE, Coins price per Coin is 0.72 USD Equivalent.

Starting 1st of August 2018, the price of ECE Coins will be $0.80 Equivalent. The price will increase every 7 days by $0.03 until the end of the Coin sale on 1st of February, 2019.

EarthCycle funding will be allocated to tried and tested businesses that are already in profitable operation. Earth Nation will provide each company the opportunity to develop international franchises that are indefinitely connected with the EarthCycle Coin and the EarthCycle nonprofit organizations. This element is further described in the Franchise-like Branches section of the ECE whitepaper.

For more information read their whitepaper and/or checkout EarthCycle.io.

EarthCycle is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high-risk tolerance. Only participate in a token event with what you can afford to lose. This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest

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With Bitcoin now at USD 8,219 at time of writing, it appears that the flagship digital currency could finally be back on a bull run. The predictions abound, but with 20% back on its price after a week, Bitcoin is making up some fast ground.

As with most things, the good news is always a boon for morale and the two months have certainly seen plenty of motivating factors capable of pushing the coin upwards. CoinMarketCap gives Bitcoin a 47% dominance rate, unseen since December last year when the landmark USD 20,000 valuation was reached.

Some of the factors contributing to the bull run must start with the US Securities and Exchange Commission’s (SEC) Bitcoin Exchange Traded Fund (ETF) talks which look set for approval, according to an unconfirmed report last week. According to Forbes, two sources at both the SEC and at the US Commodity Futures Trading Commission (CFTC) see the green light being given in mid-August. If so, purchasing of Bitcoin would become far simpler, which is bound to meet with crypto public approval.

As Bitcoin News reported last week, asset managing giant BlackRock is rumored to be considering moves into cryptocurrency. The company, which is the world’s largest asset manager with assets under management of over USD 6.3 trillion as of November 2017, is said to be putting together a team of experts in the field to investigate blockchain and cryptocurrencies.

Despite a denial of the rumors from its management, BlackRock did not rule out a future involvement. Its status as a hugely successful company will ensure that any move into the cryptocurrency arena is sure to have ramifications, with expectations that the company’s global assets could double by 2022.

Another jolt in the arm for the crypto space was the appointment of David Solomon as the next CEO of Goldman Sachs – a man who has publicly discussed the financial benefits of cryptocurrency trading. This, of course, on top of the announcement by Sachs itself in May that it plans to use its own money to trade in Bitcoin futures, after a decision by the investment bank’s board of directors following customer pressure.

In June, Sachs revealed that cryptocurrency trading could be a possibility in the future under its “evolve and adapt” policy. Former vice president of the Investment Management Division at the bank, Christopher Mattis, said in an interview on CNBC that he would invest his mother’s money into Bitcoin.

Regulatory news has also been good for Bitcoin in the last week with comments from G20 members of the international financial watchdog, the Financial Stability Board (FSB), reporting that cryptocurrencies posed no risk to the global financial system.

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The Gibraltar Blockchain Exchange (GBX) has announced the launch of its cryptocurrency exchange, GBX Digital Asset Exchange.

After a trial period with only 300 customers, the operator has gone live and open to the public in a mission towards large-scale adoption of crypto and institutional investment in digital assets. Headquartered in U.K. territory bordering Spain, the firm allows registered users to fund their account in USD.

GBX Launches Cryptocurrency Exchange with Fiat Currency Accounts

Similarly to a few other micro-states, Gibraltar has become attractive to players within the cryptocurrency ecosystem for its tax haven status coupled with booming industries substantially affected by blockchain, financial services, and online gaming. The state is also home to multiple financial institutions familiar with anti-money laundering (AML) and know-your-customer (KYC) requirements.

Nick Cowan, CEO of the Gibraltar Blockchain Exchange, finds the timing of the launch of the GBX Digital Asset Exchange – following months of regulatory initiatives worldwide and a cryptocurrency market cap growth of nearly 400% YoY – as an advantage.

“Today marks the most exciting development on the GBX journey thus far and is a significant indication that Gibraltar is open for business. The launch comes at a time when the cryptocurrency and token markets are reaching a new stage of maturity.”

The company also expects that its fiat currency accounts will be sufficiently attractive for investors wanting to enter the cryptocurrency space they will be able to go around one of the biggest hurdles at the moment. After completing the KYC requirements, GBX Digital Asset Exchange customers will promptly be able to trade fiat pairs – RKT/USD, ETH/USD, and BTC/USD – as well as exchange Bitcoin (BTC), Ethereum (ETH), Rock Token (RKT), Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC).

“We are already looking forward to making significant additions to this offering in the future as we continue to make sustained progress in offering users the most comprehensive trading options possible. As a part of our continued work towards facilitating greater cryptocurrency trading accessibility and reliability, we shall be launching the official GBX mobile application in the near future, bringing a world-class Digital Asset Exchange to the fingertips of our community of users.”

The primary medium of exchange for trades on the GBX platform will be the GBX-generated Rock Token (RKT). Customers who use this utility token for settling their fees in RKT will be offered a reduction in trading fees. A discount will also be provided to those holding a specific minimum amount of RKT. Investors signing up before 17th August will enjoy Zero-Fee Trading from now until 14th September 2018. The GBX Digital Asset Exchange is also setting up its Exclusive Trading Competition with a prize pool at an outstanding 1,000,000 RKT.

Featured image from Shutterstock.

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First sparked by CryptoKitties, the Ethereum community has taken a liking to a motley crew of decentralized applications (DApps) built on the network. Recently, the network has seen huge volume spikes due to an unlikely niche: Ponzi DApps.

At the time of writing, Fomo3D and PoWH3D were leading 24-hour DApp activity by a massive margin, with approximately 10,500 and 4,500 daily users, respectively. For reference, all other Ethereum DApps combined had under 5,000 users within the last day, making these two applications three times bigger than the rest of the Ethereum network.

Each DApp has its own flair that differentiates it. PoWH3D (Proof of Weak Hands 3D) was the original Ponzi DApp to see significant popularity, and the explosion of Fomo3D has led to a rekindling of P3D, too. With P3D, users simply purchase tokens meant to increase the price; the more that are bought, the higher it goes. A percentage of each purchase is split among all existing token holders as dividends. The appeal of P3D, however, lies in the ability to sell tokens at any time. There is about a 20% margin between buys and sells, and selling alternatively does lower the price, so the strategy of most players is to buy when they think many will be buying, and sell before many others are selling.

Fomo3D (Fear of missing out 3D) is the newer of the two, and offers more of a gamified experience. Instead of buying tokens, F3D players purchase keys. Fomo3D is supposed to replicate an “honest” ICO, where each key represents an investor’s private keys. Unlike P3D, which is a perpetual buy-and-sell, F3D is played in rounds, with a winner-takes-all conclusion. Essentially, each key contributes to the global “ICO fund”. If there are no purchases for 24 hours, the last buyer gets to “exit scam” and run with the money. Each key purchase resets the timer, and similar to P3D, a portion of each purchase is distributed as dividends to existing key holders. There are four teams which players can also choose to join, each of which offers different perks, such as increased dividends or larger contributions to the main pot. The current value of the main pot is close to 20,000 ETH (US$9.3 million) and constantly growing.

Why the Appeal?

It’s no secret that humans can be greedy, and exciting, high-risk opportunities like these Ponzi DApps have historically drawn significant attention. Even in cryptocurrency, coins like Bitconnect and Paycoin soared to great heights before shutting down and running with the money.

However, much of the success of these two DApps can be attributed to the transparent nature of the events. Both Fomo3D and PoWH3D are orchestrated in an automatic, decentralized fashion via smart contracts. Rather than textbook scams, these platforms are more akin to gambling games, as metrics like odds, payout criteria, and fees are public knowledge and immutable. Players feel that while these DApps are certainly high risk (and labeled as such), they are safe in the sense that they recognize what they are getting into.

Others also suggest that there is educational merit behind these projects in gamifying smart contract components and providing a more simplified environment where blockchain novices can learn about concepts like smart contracts and DApps.

Regardless, these games’ wide appeal cannot be denied. The contracts of both DApps are growing well into the tens of thousands of ETH, and they may achieve six-figure ETH deposits shortly. The games’ Discord channel has grown beyond 12,000 members, with over 1,000 online and chatting away at any given time. For one reason or another, players love these 3D Ponzi DApps.

“Big Four” financial firm PriceWaterHouse Coopers Switzerland will audit the Tezos Foundation, the latter announced Monday.