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Korean Crypto Exchange Sued for Controversial Token Schemes

Korean Crypto Exchange Sued for Controversial Token Schemes

A lawsuit has reportedly been filed in South Korea against a local cryptocurrency exchange over its price-pumping schemes involving token issuance. The suit alleges that Cashierest’s token which pays dividends and rebates transaction fees to investors violates the country’s capital markets law.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

The Lawsuit

South Korean law firm Aone filed a complaint with Seoul Central District Court on Oct. 5 against Newlink Co. Ltd., the owner of crypto exchange Cashierest, according to local media. Lawyer Kim Dong-joo at Aone’s Seocho branch explained that his firm is pursuing charges against the crypto exchange for deviating from the public interest in order to restore the health of the cryptocurrency market, Zdnet Korea conveyed.

Korean Crypto Exchange Sued for Controversial Token Schemes

The publication described one of the schemes used by the exchange as “Criminal pumping, the so-called ‘cage pumping,’ which induces price increases while restricting the withdrawal of cryptocurrency.”

Korean Crypto Exchange Sued for Controversial Token SchemesThe suit alleges that Cashierest has committed two illegal acts by issuing its “dividend coin [called] cap (CAP)” on the capital market, according to the news outlet. The first is a “violation of the securities issuance procedure,” as defined in Article 119 of the country’s Capital Markets Act. The other is a violation of Article 178 which prohibits unfair trading. The publication emphasized that the exchange engages in unfair practices to pump the price of its token.

According to Money Today, the law firm plans to expand the lawsuit to other exchanges such as Bithumb, Coinbit, and Coinzest.

Dividends, Trade Mining, Referral Mining

At the heart of the lawsuit is CAP, the exchange’s own token. First issued in August, the token has three features: dividends, trade mining, and referral mining. CAP’s whitepaper reads, “By possessing CAP, you can receive 100% of profits of Cashierest’s exchange charges. Regarding charges issued with each market (KRW, BTC, ETH, TUSD), the refund of charges will be 100% refunded in each applicable currency.”

Korean Crypto Exchange Sued for Controversial Token Schemes

Under the dividend section, Cashierest’s website explains that the coin “pays the first dividend in KRW,” adding that it also pays “100% of the Cashierest transaction fee revenue in KRW in proportion to the customer’s CAP reserves by two snapshots a month.”

Under the trade mining section, the website states that “The transaction fee is 100% refunded, and returns 70% of the transaction fee to the trader.” Trade mining has been called controversial and a scam. Binance CEO Changpeng Zhao, for example, said in July:

The cleverly masked selling of coins through enticing words like trade-mining… these models are simply scams to sell their coin(s), and not great innovations.

The last of CAP’s features is referral mining which allows referrers to receive 30 percent of the transaction fees paid to the exchange by their referees, the exchange detailed.

In April, news.Bitcoin.com reported on Cashierest having a computer system glitch that allowed customers to withdraw more coins than intended.

What do you think of this Korean exchange’s token schemes? Let us know in the comments section below.


Images courtesy of Shutterstock and Cashierest.


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The post Korean Crypto Exchange Sued for Controversial Token Schemes appeared first on Bitcoin News.

Suspected Mastermind Behind Kassh Coin Arrested

Suspected Mastermind Behind Kassh Coin Arrested

The New Delhi Police Branch has arrested Asif Ashraf Malkani – a thirty-five-year-old man accused of operating Kassh Coin – a multi-million dollar scam that duped Bollywood celebrities, among scores of Indian investors.

Also Read: ‘Crypto Fund’ Approved to Manage Cryptocurrency Investments in Switzerland

Operator of Crypto Scam That Duped Bollywood Celebrities Apprehended

Suspected Mastermind Behind Kassh Coin ArrestedAsif Ashraf Malkani, the accused mastermind behind a multi-million-dollar scam that targeted scores of prospective Indian cryptocurrency investors, has been arrested by police in New Delhi.

According to local media, Mr. Malkani ‘launched’ the fictitious cryptocurrency ‘Kassh Coin’ during 2016, before promoting the coin during December 2017 at “a grand function held at a farmhouse in Chhatarpur” that saw “Bollywood celebrities and models” enlisted to “perform and market the coin” at the event. Investors paid 3.5 Indian Rupees ($0.047 USD) per Kassh Coin.

Mr. Malkani is said to have sought to go into hiding after many of the scammed investors contacted police, however, he was caught after relocating to Uttar Pradesh and attempting to launch another cryptocurrency called ‘V-flix’.

Investigations have revealed that Mr. Malkani was also seeking investment to launch a “commercially viable video streaming website” called V-Tube, and has been identified as moving a significant sum of money through a firm named “Puneet Enterprise.”

Malkani Organizes Multiple “Youth Seminars” to Promote Kassh Coin

Suspected Mastermind Behind Kassh Coin ArrestedPolice Commissioner, Ajit K Singla, stated that the arrest and investigations into the operations of Mr. Malkani and his companies were carried out by a team led by Deputy Commissioner of Police, Bhisham Singh.

Commissioner Singh has stated that Mr. Malkani began operating a multi-level marketing scheme in 2015 after joining advertising Unetnet alongside his wife, before becoming interested in cryptocurrencies the following year.

The investigations also uncovered that Mr. Malkani and company organized a number of “youth seminars” across India and Nepal following the success of their farmhouse event in 2017. Since then, Mr. Malkani made his way through Goa, Chennai, Kolkata, Kanpur, and Pune whilst attempting to evade law enforcement.

Do you think that increased regulatory action is reducing the presence of scammers within the cryptocurrency industries? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


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Japanese Internet Giant GMO to Launch Yen-Pegged Cryptocurrency

Japanese Internet Giant GMO to Launch Yen-Pegged Cryptocurrency

Japan’s GMO Internet Group has announced plans to issue a yen-pegged stablecoin called GMO Japanese Yen. Already in the crypto exchange and mining hardware businesses, the company plans to launch its third crypto enterprise with this stablecoin.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

Yen-Pegged Stablecoin

Japanese Internet Giant GMO to Launch Yen-Pegged CryptocurrencyGMO Internet Group announced Tuesday that it “will start full-scale preparations to issue stable coins of virtual currency, with an eye to enter into the ‘settlement’ area of virtual currency business.” The company detailed:

‘GMO Japanese Yen (ticker symbol: GJY)’ [will be launched] through the unified brand (global brand) ‘Z.com’ in the overseas strategy of the GMO Internet Group. [It will be a] ‘yen-pegged currency’ linked with the Japanese yen.

Noting that there are already 57 stablecoins in the world, 23 of which are already in circulation, GMO disclosed that “We plan to start issuing [the stablecoin] for the Asian region around the fiscal year 2019.”

Third Crypto Business

Currently, GMO has two businesses in the crypto space: the exchange business which started in May last year and the mining business which started in December. In its earnings presentation published in August, the company outlined another crypto business area it seeks to enter called “cryptocurrency payment.”

In Tuesday’s stablecoin announcement, GMO revealed that it has been “investigating and researching whether the virtual currency could be the settlement currency from the viewpoint of volatility.”

Japanese Internet Giant GMO to Launch Yen-Pegged Cryptocurrency
GMO’s crypto businesses. Source: GMO Internet Group

GMO’s Hope for Its Stablecoin

Japanese Internet Giant GMO to Launch Yen-Pegged CryptocurrencyAccording to GMO, in order to solve the hyperinflation problem seen in many developing countries, “issues such as true non-centralization need to be overcome.” The firm asserted that stablecoins can be a solution to this problem “as a currency to replace low-credit domestic currencies.” The firm also believes that even in developed countries, stablecoins have “a potential to become a global standard innovative financial infrastructure.”

Referring to its yen-pegged crypto, GMO described:

One of the tasks is to stabilize price fluctuation (volatility), which is a risk to remittance and settlement, in order to increase the spreading and development of the virtual currency.

What do you think of GMO issuing a yen-pegged stablecoin? Let us know in the comments section below.


Images courtesy of Shutterstock and GMO Internet Group.


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‘Crypto Fund’ Approved to Manage Cryptocurrency Investments in Switzerland

Crypto Fund Gets Go-Ahead to Manage Cryptocurrency Investment Funds in Switzerland

Emerging Swiss virtual currency fund, Crypto Fund AG, said on Tuesday it had been given an asset management license by the Financial Market Supervisory Authority (Finma). The license allows the company to manage crypto-related investments within Switzerland and to solicit for others elsewhere. Crypto Fund will also be authorized to provide investment advice to corporate investors.

Also read: Online Automotive Parts Retailer Newparts Now Accepts Bitcoin Cash

Crypto Fund to ‘Accelerate Maturity’ in Crypto Markets After Getting Finma License

“The authorization represents our professional work over the last 12 months and is a major milestone for us,” said Mathias Maurer, chief operating officer of Crypto Fund, in an emailed statement to news.Bitcoin.com. “This [license] puts…[the company] on the same playing field with other globally recognized and regulated Swiss fund managers,” he wrote.

Crypto Fund Gets Go-Ahead to Manage Cryptocurrency Investment Funds in Switzerland

Without the license, issued under the Swiss Collective Investment Schemes Act, activities of crypto firms in the Alpine country will be limited and only “subject to fulfilling compliance with money laundering,” Maurer noted.

Founded in June 2017, Crypto Fund is the financial arm of Crypto Finance AG. The Zug-based company facilitates the implementation of blockchain technology through services such as asset management and brokerage, building bridges between investors and businesses that seek to utilize the technology.

Switzerland has taken a progressive stance towards cryptocurrency, legalizing its use and formalizing crypto transactions in various contexts. But some crypto projects still find it difficult to open bank accounts and regulatory clarity to cryptocurrency-focused bankers and investors is still not as clear as it might be.

In June, Finma licensed Crypto Finance to distribute collective investment schemes and funds to qualifying investors.

Jan Brzezek

“The importance of crypto assets is growing and our aim is to accelerate maturity in these markets,” Crypto Finance chief executive officer Jan Brzezek said in an online statement.

He noted that the license was important in building confidence “for crypto assets around the world.” Brzezek is looking to seek approval for a passive investment fund in the future.

Progressive Switzerland Continues to Expand Crypto Space

Along with countries such as Gibraltar, Isle of Man, Cayman Islands and Mauritius, Switzerland has welcomed cryptocurrencies like bitcoin core and bitcoin cash, going against other governments’ sceptical view of digital coins as being opaque, volatile and speculative.

Uncertainty by legacy Swiss banks on the policing and implementation of initial coin offerings (ICOs) in the financial market made them cautious, and reluctant to issue participants in the nascent market with company accounts, leading to the departure of at least two major players this year. However, banks have started to open up. The 86-year-old private bank Maerki Baumann now accepts crypto assets.

Crypto Fund Gets Go-Ahead to Manage Cryptocurrency Investment Funds in Switzerland

Faced with competition from crypto-affirming rivals including Liechtenstein, Gibraltar and the Cayman Islands, whose banks are more welcoming, Switzerland’s financial regulator got to work with lawmakers this year to provide clarity on the policing of the ICO market. The Crypto Fund license is the latest high-profile effort to build seamless synergies in the area.

Crypto-related businesses employ hundreds of people in Switzerland, with cryptocurrency legal tender in certain contexts. Switzerland sees virtual money and blockchain as a strategic innovation in global finance and is intent on maintaining and growing the jobs it has to offer in this field. The country’s tax regulatory authority considers cryptocurrencies to be assets, subject to wealth tax and declared on annual tax returns.

According to reports, Zug, also known as Crypto Valley, ranks favorably among the most crypto-friendly cities in the world, boasting more than 400 crypto businesses. Four of the 10 biggest ICOs in 2017 were registered in Switzerland, greater than any other country, according to a PwC report.

What do you think about crypto-related investment funds? Let us know in the comments section below.


Images courtesy of Shutterstock and Crypto Finance


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First Major Bitcoin Cash ICO Raises $30M in Record Time

First Major Bitcoin Cash ICO Raises $30M in Record Time

On Oct. 8, 2018, the blockchain firm and mining pool Viabtc finished the first high-value initial coin offering (ICO) using the Wormhole protocol and Bitcoin Cash chain. According to exchange data, the Viabtc Token ICO raised US$3,700 per second capturing a total of $30 million in 2.2 hours.

Also Read: Electron Cash Developer Reveals In-Wallet BCH Fundraiser Prototype

Viabtc Launches Token Sale and Distribution Phases

First Major Bitcoin Cash ICO Raises $30M in Record TimeThe firm Viabtc had recently launched a new token called the Viabtc Token (VIAT) using the Wormhole protocol. The company refers to viat as a value-added service and privilege token that can be used as “gas” or a method of value transfer. When viat was issued on the Wormhole network a fixed supply of 2 billion tokens was set by the developers. On Monday Viabtc raised $30 million during the first major ICO issued on top of the Bitcoin Cash blockchain. Then on Oct. 9, Coinex users who trade the viat token will receive an airdrop from the firm’s stash of CET tokens.

First Major Bitcoin Cash ICO Raises $30M in Record Time
According to the Coinex accelerator page, the Viabtc Token ICO sold 750M VIAT raising US$30M on Oct. 8, 2018.

Viat will be used for a process called ‘Duo mining’ which gives miners normal pool payouts but also an added payout of viat as well. The viat mining payouts will be released in four phases and will give miners extra incentives to join the pool. The mining pool says that users can invite friends to mine with Viabtc and with a referral link they can receive more payout rewards. Viat owners can also use the currency for discounts toward pool fees and “exclusive customer support.” The tokens will be able to purchase mining accessories, Viabtc souvenirs, and the company’s BTC transaction accelerator.

“[The] Viabtc Token can be used as ‘gas’ and value transfer tool,” explains the mining pool. “We will add more application and privileges to it so that its holders can participate in the planning of Viabtc operations, building and improving Viabtc ecosystem together with the Viabtc team.”

First Major Bitcoin Cash ICO Raises $30M in Record Time
The Viabtc Token can be found on a token-supporting block explorer.

Crypto-Companies Launching Incentive Tokens for Service Discounts Is Trending

Besides trading, viat will solely be used for Viabtc services only in order to bolster the firm within the blockchain industry. The Viabtc Token project is lead by the mining pool’s founder Haipo Yang, and the firm’s COO Huimin Ouyang. Viat will also be subject to a repurchasing plan and a burning process according to the viat ICO’s whitepaper.

“Viabtc will buy back and ‘burn’ viat with 20% of its quarterly revenue at the end of each quarter — This will reduce the total amount of viat steadily on a benign deflation model,” the whitepaper details.

Viabtc adds:   

The repurchase details will be announced timely and the ‘burning’ transactions are available for checking on the blockchain to ensure transparency.

Cryptocurrency companies who have created incentive-based tokens for certain services and privileges have done well over the last year. For instance, the trading platform Binance and it’s BNB token has managed to position itself at the top 14 highest market valuation out of 2,000+ digital currencies.

First Major Bitcoin Cash ICO Raises $30M in Record Time
VIAT is available for trade with the following trading pairs; USDT, BCH, CET, and BTC.

Viabtc’s exchange Coinex and its CET token also use these coins for incentives and CET is currently worth around $0.03. According to the trading platform’s data this Tuesday, viat is trading for $0.04 per coin and has over a million USDT in trade volume.

What do you think about the Viabtc Token (VIAT)? Do you think there will be more big ICOs using the Bitcoin Cash network? Let us know what you think in the comments section below.


Images via Shutterstock, Viabtc, and Coinex. 


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Cashtippr Plugin Allows Money Button Integration on WordPress Sites

Cashtippr Plugin Allows Money Button Integration With WordPress Sites

On Sept. 13, a new application called the Money Button launched, giving content creators the ability to embed bitcoin cash (BCH) payment buttons into websites. Not long after the release, a developer named Ekliptor published Cashtippr, a plugin that integrates the Money Button into WordPress-themed websites, so content creators can earn BCH tips.

Also Read: Electron Cash Developer Reveals In-Wallet BCH Fundraiser Prototype

A Revenue Incentive for Content Creators

A few weeks ago, news.Bitcoin.com tested the Money Button, but at the time there wasn’t a WordPress plugin available. Then soon after the Money Button launch, Ekliptor released the third-party Cashtippr application, which enables Money Button compatibility with the popular blog hosting service WordPress.

Cashtippr Plugin Allows Money Button Integration With WordPress Sites
An example of the Money Button on a WordPress site. It has a few customizable options to choose from before embedding.

Cashtippr is an open source plugin for WordPress-themed sites that have the ability to integrate software modules created by third-party developers. Content creators can install the Cashtippr plugin to receive BCH tips or charge money for hidden or paid content. For instance, if an individual runs a website devoted to their art, they can add a Money Button to the site and collect tips from people who appreciate their work. Additionally, the plugin doesn’t require any coding skills to set up and it can be installed through the WordPress plugin store or the cashtippr.zip file on the Cashtippr project’s website.

Cashtippr Plugin Allows Money Button Integration With WordPress Sites
The Cashtippr console.

A Range of Different Use Cases

After installing the plugin, users can simply add their BCH addresses in the WordPress admin-panel. Tip buttons can be added to front pages or posts by adding a shortcode: [tippr_button]. If the content creator wants to create a hidden paid content page they can just type: [tippr_hide]your hidden text[/tippr_hide]. The two features only represent the very basics of Cashtippr, but they have a wide variety of use cases, such as selling digital media and unlocking blurry photos or secret video content.

The Cashtippr plugin offers a number of options and advanced settings.

Cashtippr also includes advanced features that allow WordPress website owners to set limits on how many hidden posts new users can view by using cookies. They can set a range of full access passes to specific hidden content, or set up a “donations goals” button. Hidden content can also have expiry times for when the posts age and readers can then view them for free. Users can embed a link to a bitcoin cash faucet on the bottom of the page or show hidden content to search engines.

The Cashtippr WordPress plugin is free and the receiving address can be set to any wallet, but people who want to pay with the Money Button need to register. In the future, the Money Button creators may charge a fee for high-traffic publications and popular applications.

In order to enable Cashtippr and the Money Button in Safari, the privacy settings have to be configured in iOS or desktop browsers.

Safari users will initially have a problem using the Money Button and the Cashtippr plugin due to Apple’s privacy guidelines. However, if they disable the “Prevent Cross-Site Tracking” option on iOS, the Money Button can then be used in the Safari mobile browser. Safari desktop users will have to use the “Preferences’” option in the browser and navigate to the “Privacy” section. From there, they can disable the “Prevent Cross-Site Tracking” software, so the Money Button is available to use.

What do you think about the Cashtippr plugin? Let us know your thoughts about this subject in the comment section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned company/product or any of its affiliates or services. The author and Bitcoin.com are not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images via Shutterstock, Cashtippr, and the Money Button.


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Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most Staff

Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most of Staff

Recent updates show that with the cryptocurrency markets performing far from how they did a year ago, some exchanges have failed to adapt to the current situation. For example, one U.K. firm is reportedly set to fire most of its employees. Yet other exchanges are still going strong, breaking into new territories and adding new trading instruments.

Also Read: The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC

Weak Quarterly Trading Volumes

Diar, an analysis service for the global digital currency industry, has issued a report highlighting the extremely weak performance of popular crypto exchanges during the third quarter of the year. For example, total USD trading volumes on Coinbase reached their lowest point in a year and total USDT trading volumes on Binance fell from $235 billion in the first quarter to just $106 billion.

Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most of Staff

As the report shows, one way the exchanges are looking to secure growth for the future is by moving toward tokenized securities.

“Having made bank on the trading bonanza in the past year, cryptocurrency exchanges are also acutely aware that, for the most part, the tokens they list don’t currently satisfy a utility purpose,” Diar explained. “Diving into deep pockets, exchanges are diversifying their portfolio by investing in various parts of the ecosystem to support the long-term growth of an industry stuck in development. But most notably, exchanges have amped up their investment interest for the possible issuing and trading of tokenized securities.”

Coinfloor to Fire Over Half its Employees

Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most of StaffCoinfloor is in the process of firing most of its staff, according to a report by the Financial News, citing two people familiar with the matter. Founded in 2013 with backing from Transfer Wise founder Taavet Hinrikus, venture capital firm Passion Capital and Adam Knight, Coinfloor was estimated to employ about 40 people before the newly planned cuts.

Coinfloor CEO Obi Nwosu told the London-based newspaper that the company has “seen significant change in trade volume across the market.” He also stated that: “Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies.”

Israeli Exchange Looks Abroad

Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most of StaffAccording to Israeli media reports, Tel Aviv-based exchange Bit2c is looking to offer its services into foreign markets. The exchange has reportedly acquired a Gibraltar-based firm, Eyos, that is said to be in advanced phases of receiving a distributed ledger technology (DLT) license from the local regulatory authorities that can be used to accept clients from across the EU.

“This is a significant breakthrough in making unique Israeli technology more accessible while providing a professional and experienced service to the whole of Europe, and all in the framework of a license that will enable a range of trading activities, payment options and cooperations with traditional financial institutions such as banks, credit companies and insurance companies,” Bit2c CEO Eli Bejerano said. “We continue to examine other markets, and in the future we will act to get additional licenses around the world.”

Bequant Launches EUR Stablecoin

Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most of StaffBequant, a London-based global exchange, has announced the launch of Stasis’ stablecoin EURS. The company explains that the launch of the token, meant to be backed 1-for-1 by the euro, will allow safe investing for its European institutional investors in a reliable asset.

“The cryptocurrency sector is constantly striving for ways to encourage transparency, reliability and trust from investors — both institutional and individuals. Doing so not only builds trust within the industry, but also establishes clear regulation and controls that make crypto-assets a desirable choice for any investor’s portfolio. Stablecoins hold huge advantages in making this goal possible, tying themselves to a more traditional asset,” said CEO George Zarya.

“STASIS EUR’s work in creating a more reliable asset will help build the credibility of cryptocurrency in the wider financial market through its improved processes aimed at providing a more secure asset for investment. Its listing on BeQuant presents a huge opportunity for investors to get involved with a currency that is already giving previously cautious investors access to the world of crypto.”

Should we expect more exchanges to cut staff as trading volumes drop? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

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Bitcoin Core Developer Advocates Credit Card Payments Over BTC

Bitcoin Core developer Jimmy Song has caused controversy by suggesting that bitcoin enthusiasts would be better off using credit cards as a means of payment. He described this strategy as being “more rational and convenient” than making multiple onchain transactions. His advice flies in the face of the rationale behind Bitcoin and has provoked a strong response.

Also read: Credit Card Cartels Landed With $6.2 Billion Price-Fixing Bill

Jimmy Song Sings the Praises of Fiat Currency

Bitcoin Core Developer Urges Credit Card Payments Over BTCBitcoin Core developers are expected to advocate the use of the cryptocurrency protocol they help to maintain. Jimmy Song’s invocation to use credit cards, where possible, has thus been greeted with incredulity in some quarters. “If you want to use bitcoin as a method of payment,” he began his tweet, implying that there was something odd about wanting to make payments with a cryptocurrency whose whitepaper is titled “a peer-to-peer electronic cash system.”

Song went on to describe his proposal for using credit cards to fund day-to-day payments and then paying off monthly bills in bitcoin. The justification for doing so was that such a mechanism would entail performing a single onchain transaction, rather than multiple ones for each purchase. Song’s tweet, liked by various Bitcoin Core developers and assorted cheerleaders, is not uncharacteristic. Blockstream CSO Samson Mow has previously opined that bitcoin “isn’t for people that live on less than $2 a day,” and asserted that such individuals may not even be computer literate enough to safely transact with cryptocurrencies.

Core Developers Dissuade Daily Use of Bitcoin

Credit Card Cartels Landed With $6.2 Billion BillA number of Bitcoin Core developers have voiced similar opinions to Song, including urging members of a meetup not to use their BTC to pay for dinner. The notion that the bitcoin ledger is sacrosanct, and that users should avoid sullying it with trifling transactions for everyday purchases, is an odd one to espouse, especially by figures who effectively serve as ambassadors for BTC adoption.

For those who discovered bitcoin early, bought cheap coins, and then watched their wealth skyrocket once the rest of the world caught on, the “store of value” narrative must be appealing. Such early adopters, especially those living in Western lands, have little incentive to spend their precious coins. For the rest of the world, however, seeking refuge from corrupt and permissioned fiat systems, bitcoin can be a lifeline.

Those earning under $2 a day don’t have the luxury of making purchases on credit cards before paying it off later in BTC. Moreover, as long as people are encouraged to prop up corrupt credit card cartels, bitcoin will change nothing. Criticism for Jimmy Song’s stance came in thick and fast and from all quarters:

Andreas Brekken may have put it best, though: “Get paid in bitcoin and convince your suppliers to accept bitcoin. That’s how you escape fiat. As a bonus you won’t be fueling the unwinnable war on drugs/terrorism.”

What are your thoughts on Jimmy Song’s tweet? Do you think onchain transactions should be minimized? Let us know in the comments section below.


Images courtesy of Shutterstock, and Twitter.


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The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC

In today’s edition of The Daily, we look at a group of major cryptocurrency venture funds teaming up with a new startup hub, some good news for Israeli investors, a new platform launched in open beta and an FX broker that is adding bitcoin cash (BCH)/bitcoin core (BTC) to its platform, as well as 15 other trading instruments.

Also Read: Binance Exchange to Replace Token Listing Fees With Donations

New Startup Hub to Support
Privacy-Focused Projects

Oasis Labs has announced a new partnership with a16zcrypto, Accel, Binance Labs, Pantera Capital and Polychain Capital to launch a program to accelerate the development of privacy-focused projects. The Oasis Startup Hub will provide developers with guidance from top venture capital investors, dedicated technical support from its engineers and other additional benefits. The team said that several companies have already joined the program at launch, developing applications that range from decentralized credit scoring to distributed data marketplaces for artificial intelligence.

“Oasis has impressed us with technical acumen and business leadership, and working closely with their team on this project reflects the depth of our commitment,” said Paul Veradittakit, partner at Pantera Capital. “The Oasis Startup Hub offers a unique opportunity to share expertise and relationships to solve key issues around blockchain scalability and privacy, and move toward widespread adoption.”

Israel May Lighten Tax Burden on Crypto Traders

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTCSpeaking at an event in Tel Aviv, the deputy director general of the Israel Tax Authority said that the agency will not insist on calculating the taxation of crypto by FIFO (first-in, first-out), which can simplify reporting for investors and may result in lower tax assessments.

CPA Roland Am-Shalem, the deputy director general of the agency, clarified that the exact tax calculation, which relates to profits explicitly accrued for each cryptocurrency, would be acceptable to the Israeli authorities. Asked whether the tax could be reported by a non-FIFO method, he replied: “Yes, we will not insist on FIFO, subject to the fact that you can identify the currencies and be consistent with yourself.”

Jeremy Dahan, co-founder of Hello Group Software, which offers a diamonds-backed stablecoin, commented: “The significance of the announcement is that the assessments are much lower than in the FIFO method, so even those who submitted reports according to this method will be able to submit revised reports that may reduce the assessment.”

Gidi Bar Zakai, a former deputy director general of the Israel Tax Authority, added that “the acknowledgment by the tax authority in calculating accurate profits in digital currencies will result in a true tax calculation, which will lead to increased collection and profit of hundreds of millions of shekels for the state over the years.”

Roboforex Adds BCH/BTC and
15 Other New Instruments

Roboforex, a financial broker licensed by the International Financial Services Commission of Belize (IFSC), has expanded the range of crypto instruments available for trading through its R Trader multi-asset platform. It has added 16  new trading instruments to the platform, including BCH/BTC, BTG/BTC, BTG/USD, EOS/BTC, ETC/BTC, ETC/USD, GNT/USD, IOTA/BTC, IOTA/USD, NEO/BTC, NEO/USD, OMG/BTC, OMG/USD, QTUM/USD, XMR/BTC and XMR/USD. In total, 26 crypto instruments are available for trading on the platform at the moment, with leverage of up to 50:1.

“Until recently, one could trade of a large set of different cryptocurrencies only at exchanges, but now traders have new options,” said Kiryl Kirychenka, head of R Trader. “If we’re talking about convenience of products and services, trading conditions and security, brokers’ offers are competitive to crypto exchanges, but in many aspects they are even better.”

Coinmetro Launches Professional
Platform in Open Beta

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTCCoinmetro, which secured two licenses for crypto trading activities from the Estonian government earlier this year, has launched an ongoing open beta of its new trading user interface, featuring multiple order and execution types, as well as charting tools and trade history with rapid order processing. Developed for experienced and professional traders, the platform joins the two interfaces that are already available in beta and offer a more basic experience. The full launch of the platform, expected later this year, will feature multiple cryptocurrencies (BTC, ETH, XRP, LTC and BCH) as well as fiat currencies (EUR, USD, JPY, GBP).

“The tiered layout of the CoinMetro exchange, all the way from our ‘Simple Exchange’ right up to our new comprehensive trading platform, has been developed with users in mind, making it straightforward to trade crypto, no matter what their experience level is,” said CEO Kevin Murcko.

“We’ve streamlined the investing process for beginners, but we’re also offering the rich functionality that professional and experienced currency traders will expect. We’re grateful for all the support and feedback we’ve received so far during our open beta period. Thousands of users have now tested out the platform, and we’re keen to implement many of their suggestions into our final product.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.


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Mischief-Maker Promises to Livestream a 51% Altcoin Attack

Mischief-Maker Promises to Livestream a 51% Altcoin Attack

“On Oct 13, 3:00 CDT I will be doing a 51% attack against the cryptocurrency Einsteinium,” began the call-to-arms. As promises go, this one was as bold as it was brazen. The anonymous attacker has promised to assume majority hashrate control of an altcoin to demonstrate how easy the process is. As proof, they’ve not only given fair warning of the attack, but have promised to livestream the event.

Also read: You Can Now 51% Attack a Coin for as Little as $500

51% Attacking Altcoins Is Now a Spectator Sport

Mischief-Maker Promises to Livestream a 51% Altcoin Attack51% attacks, in which a malevolent attacker gains majority control of a cryptocurrency’s hashrate, and then potentially uses this advantage to fraudulently double spend transactions, have been a recurring motif in 2018. During the course of three months, a string of altcoins were 51% attacked including bitcoin gold and verge, the latter succumbing twice. Now, another scrypt-based coin, einsteinium (EMC2), is in the spotlight after being singled out for attack.

The entity responsible, operating under the handle of “piracy1”, has disclosed extraordinarily precise details as to when and how the attack will go down. The reasons stated are to “1. Demonstrate how easy these attacks are for anyone to do. 2. Generally teach people about the nuts and bolts of these attacks and potential mitigations.” For interested parties, a livestream link has been provided, with the action scheduled for 4am EST on October 13.

Low Hashrate Altcoins Have Become a Joke

In selecting EMC2, the aspiring attacker could hardly have chosen an easier target. The altcoin is this year’s third worst performer, down 97% from its all-time high. Devalued PoW coins typically have a hashrate commensurate with their price, making them vulnerable to malicious or bored attackers. The monetary rewards to be derived from 51% attacking a coin such as einsteinium are likely to be negligible. In fact, all indications suggest that the would-be attacker has no interest in attempting to confirm double spent transactions. As a consequence, the attack is likely to cost piracy1 money in renting the necessary hashrate to complete their assault.

“I’m putting in $50 of my money and if you want to donate you can,” they explained. This derisory figure demonstrates the cheapness with which a low hashrate altcoin can be owned. According to crypto51.app, scrypt-based alts can be attacked for an hour using rented hashpower for as little as $22 in the case of florincoin. Should EMC2’s attacker make good on their promise, they won’t have proven anything that wasn’t already known: attacking low cap altcoins is easy and most Proof of Work cryptocurrencies outside of the top 10 are sitting ducks.

Would you watch a livestream of an altcoin being 51% attacked? Let us know in the comments section below.


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