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  1. Stablecoin Tether (USDT) saw its price take a tumble on Monday, October 15, 2018, temporarily hitting an 18-month low as Bitcoin (BTC) spiked to nearly hit $8,000 on Bitifnex. The decline happened at a time when the rest of the market, led by Bitcoin (BTC), experienced a rapid surge in price. Tether (USDT) FUD Following the sharp drop in the price of USDT, many in the community believed it was the end of Tether, however, the price recovery has definitely refuted that claim, at least for now. What happened is that an important trader or group of traders dumped their USDT for BTC without the necessary support on the order books (lack of demand/liquidity). This inevitably led to the temporary price decline. The price decline was further emphasized by a false report that Binance, the leading crypto exchange and largest holder of USDT, was planning to delist Tether (USDT). The false report coincided with a routine Tether wallet maintenance. The false report was refuted promptly by the company, the wallet maintenance was real and confirmed. Lowest level for USDT since April 2017 USDT/USD exchange rates dropped to about $0.86 on Kraken, representing the lowest the ‘price-stable’ cryptocurrency has fallen to since it hit similar levels on April 27, 2017. The leading stablecoin by market capitalization, which may face competition from recently launched counterparts, dropped by 2 percent in the 24-hour trading window yesterday. Increased competition in Stablecoin submarket Recently introduced Gemini Dollar (GUSD) and TrustToken’s TrueUSD (TUSD) incidentally went up as tether plunged, respectively gaining by 1.85 and 4.96 percent in the 24-hour trading period. Tether’s decline caused panic within the market, and though it has since recovered to trade at about $ $0.99, and is up 1.46 percent, it’s still vulnerable as its hour-to-hour charts show it is likely to go south again. Tether panic and Bitfinex premium Tether’s downtrend saw Bitcoin prices surge on the day, climbing as markets reacted to a sell-off in the stablecoin. All top ten cryptocurrencies by market cap recorded upsides except for USDT. The tanking experienced by USDT precipitated an uptick in BTC, which rose by a premium of over $600 on Bitfinex, hitting a high of $7,788. The bitcoin price premium on Bitfinex reached a high of over 11 percent, significantly impacting Bitfinex prices. That prompted the sell-off, as people might have felt the need to get out. At the time, global exchange rates for BTC prices hit an average high of $6,960, the highest in the last five weeks. However, Bitfinex experienced the highest fluctuation in BTC prices, which rose to about $7,788. At one point, the BTC/USD pair traded at $7,055 on the exchange, compared to an average of just over $6,600 across global markets. Bitifinex and Tether relationship Bitfinex has a close relationship with Tether LLC, the developers of the USDT token. And rumors that the crypto exchange is facing “insolvency issues” (Bitfinex refuted this), and a longstanding misgiving about Tether’s actual holdings in U.S dollars, is said to be at the heart of the price decline. It is likely that these misgivings will continue to shadow tether and Bitfinex, with traders rotating funds out of the stablecoin into bitcoin. This scenario may also be the reason that the other stablecoins gained at a time USDT prices dropped. Tether has since released a released a statement, via its Chief compliance officer Leonardo Real urging calm and reassuring the crypto community about the company’s holdings in USDT and U.S dollars to the ratio of 1:1. Real is quoted as having said that tether is listed on most of the major global exchanges and is “the leading provider of tokenized fiat currencies.” He added: “We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.” He also referred to the June 2018 inspection report by Freeh Sporkin & Sullivan, LLP (FSS), which “confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.” Source link: Tether (USDT) Loses Peg To Hit $0.86 Before Bouncing Back To Par As Bitcoin (BTC) Soars View the full article
  2. Retail investors can now trade the 0x Protocol on Coinbase.com, as well as its Android and iOS apps. View the full article
  3. The Gemini dollar has broken its peg, climbing to an all-time high of $1.19 on Tuesday. View the full article
  4. A subsidiary of Abu Dhabi Ports has partnered with Port of Antwerp for a blockchain pilot aimed to facilitate international trade. View the full article
  5. The New South Wales state government is trialing blockchain tech from ChromaWay as part of a bid to digitize property conveyance by next summer. View the full article
  6. Cryptocurrency exchange Bitfinex says it has rolled out a new process for depositing fiat currency after it halted the service last week. View the full article
  7. Decred is handing control of its $21 million treasury and all aspects of the protocol, from consensus through staffing, over to token holders. View the full article
  8. Imagine the liquidity of every crypto exchange, but in one giant pool. That's what Paradigm aims to build, and investors are on board. View the full article
  9. Bitcoin's recovery from three-week lows has kept a key long-term moving average support intact. View the full article
  10. Messaging giant LINE's Bitbox exchange has made its LINK token available for trading against bitcoin, ethereum and tether. View the full article
  11. The Huobi exchange has announced it will add support for four U.S. dollar-pegged cryptos, a day after OKEx did the same. View the full article
  12. The American Association of Retired Persons (AARP) is of the view that Bitcoin is mostly used by criminals. This was contained in a worded article that was published on its official website on Wednesday, October 10. Bitcoin is for criminals, idealists, and speculators The AARP reignited the clash of generations over the subject of Bitcoin and cryptocurrencies by defining Bitcoin and blockchain in a casually dismissive way. The body published a glossary of Wall Street buzzwords with the aim of helping the seniors understand the words used by high-finance big shots. In the article, the group defined Bitcoin as: “[A] bunch of computer code that a bunch of criminals, idealists and spectators agree is worth real money.” They added that the value of Bitcoin is volatile, which makes it difficult to use except by criminal groups, idealists, and traders. This argument doesn’t hold well because criminals, like ‘normal’ people, need money to function the same way. Further, the American Dollar remains by far the most popular form of money for criminal and terrorist financing. The AARP author gave two definitions for blockchain. AARP first defined blockchain as a series of computer software that contains a tamper-proof record of a series of transactions, with the most famous one being the Bitcoin blockchain. Secondly, AARP believes that blockchain is a word that is now uttered by companies who are looking to attract the attention of investors and their funds. The definitions of both Bitcoin and blockchain are dismissive and inaccurate and considering the goals of the AARP, it is highly questionable that these definitions have helped their magazine readers at all. The claim made in the AARP glossary echoes what Jamie Damon, the CEO of JPMorgan, has been saying, that Bitcoin is a fraud. Damon is a long-term skeptic of Bitcoin as he believes only the less intelligent take Bitcoin seriously. Ironically, his firm is moving quickly into entering the space. As an important publication with authority, up to 38 million of its users may have the wrong impression about Bitcoin and blockchain technology. Articles like this will lead to misinformation, further ignorance, and misunderstanding of the potential of such technologies. Generational difference concerning cryptocurrencies Circle Financial, in a survey conducted last month, revealed that 25 percent of millennials have expressed interest in purchasing crypto over the next 12 months. For the elderly, only a few have interest in cryptocurrencies and investing in them, according to the same survey. The younger generation will be the main driving force behind Bitcoin going mainstream and attaining global adoption but nonetheless, elders are an important part of global capital markets, having significantly more savings than the youth. Articles such as this by the AARP and views by the likes of Jamie Damon will continue to do harm to Bitcoin in the short-term but will not matter in the long-term as the benefits of the technology prevail. We hope that the AARP’s authors will cover the subject in a better light, with better facts instead of spreading false propaganda to the elderly who don’t know better, especially when it comes to new technologies. Source link: American Association Of Retired Persons Falsely Tells Readers Bitcoin Is Mainly Used By Criminals And Speculators View the full article
  13. India’s oldest crypto exchange, Unicoin, has announced the launch of Bitcoin and crypto ATM’s across India’s most popular cities to circumvent the ban on banking for cryptocurrency-related companies. The cryptocurrency landscape in India is in dire need of help following a nation-wide ban by the central bank. Recently, the largest Indian crypto exchange, Zebpay, closed their cryptocurrency exchange citing banking struggles. At the moment, Unicoin plans to install several crypto automated teller machines that will make it easier for one to acquire digital assets like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). Unicoin will also sync its ATM’s in real time to its exchange, allowing users to deposit and withdraw funds using Indian Rupees (INR) in real-time. The first of 30 Bitcoin ATMs According to Unocoin, the India-based company will roll out crypto ATMs in three major locations in the country. Unocoin CEO Sathvik Vishwanath said that the startup would deploy the first 30 ATMs in three cities, with the first already operational in the 12-million people city of Bangalore. The firm tweeted: Apart from Bangalore, the firm also has plans to launch additional crypto teller machines in New Delhi and Mumbai within the next few days. Users at the ATMs can make deposits or withdrawals beginning with a minimum of 1,000 rupees or $13.5. These amounts will increase by 500 rupees or $6.75 at every account level. The firm has made it clear that users will access all the digital assets and tokens available on the Unocoin platform as well as its subsidiary crypto-crypto Unodax exchange. According to Vishwanath, their devices do not have any direct connection with local banks. The ATMs are “stand-alone” devices that have been designed to accept deposits and withdrawals. He added: “These ATMs help people to cash in and cash out which was not possible before due to RBI restriction on banks to not provide bank accounts.” Crypto crackdown in India Blockchain adoption in India is on the rise, with many companies and institutions looking to blockchain solutions in various sectors. It includes the RBI that earlier said it was open to a central bank-issued digital currency (CBDC). However, the same cannot be said of India’s stance on cryptocurrency, despite an increasing number of crypto users in the country. The country’s central bank, the Reserve Bank of India (RBI) has imposed financial restrictions aimed at crypto exchanges. In April, the RBI asked all banks to cease from advancing any banking and financial services to the local cryptocurrency exchanges. A ban on the same came into effect in July, essentially cutting off any services banks would offer to crypto exchange platforms. The move caused uproar within the crypto community, with prices across exchanges in the country experiencing flash crashes. Cryptocurrency enthusiasts petitioned the country’s Supreme Court, challenging the central bank’s blanket ban. But on the ground, there was damage to the exchanges as the prohibition meant platforms could not accept deposits or offer withdrawals in the local Rupee. The ban also forced some cryptocurrency exchanges to simply shut down, while a few had to adopt new business models to skirt the ban, including operating as exchange-escrowed P2P platforms. The Supreme Court could not determine the matter and pushed it to a later date, initially scheduled for September. Meanwhile, the RBI filed an affidavit declaring that Bitcoin and other digital assets do not qualify to be declared as money. India’s crypto exchanges have thus been grappling with reduced volumes as a direct result of the RBI ban. A good example is the country’s leading platform Zebpay, which has seen its volumes dwindle considerably since April to a complete shutdown. According to data on XBT.net, Zebpay currently ranks 203 in the world and although active, has no volume reported in the last 24 hours. The ban on financial institutions is still in force. However, the launch of the ATMs is a big boost to the crypto community in India. Enthusiasts can now make deposits or withdraw funds in Rupee. As Unocoin’s CEO said, “…the gap is now completely filled by these ATMs.” The only inconvenience would be that users will have to access a crypto ATM to complete these transactions physically. Source link: India To Rejoin Crypto World As Startup Plans To Rollout Crypto ATMs Across Major Cities View the full article
  14. A new study conducted by Crypto Fund Research has revealed that 20 percent of all the hedge funds launched in 2018 are crypto-focused and that crypto funds now represents 3% of all hedge funds. Crypto hedge funds gathering steam despite the bear market The findings from this research show that the crypto hedge fund sector is gathering steam despite the bear market affecting the prices of cryptocurrencies since the start of the year. According to the research, there is a 90 percent increase in the number of cryptocurrency hedge fund launches in the first three quarters of 2018, and the number is expected to surpass 120 by the end of the year. Since the start of the year, a total of 600 hedge funds have been launched of which cryptocurrency based funds account for 120. The three leading cryptocurrencies, Bitcoin, Ethereum, and Ripple are the main targets of these funds, the researchers noted. Crypto hedge funds have seen a significant increase over the past 2 years as it recorded 18 percent and 20 percent in 2017 and 2018 respectively. This is far better than the 3 percent recorded in 2016 when only 21 crypto hedge funds were launched in total. Explaining the findings of its research, Crypto Fund Research stated that the number of crypto hedge funds has skyrocketed since the beginning of 2017. Currently, roughly two-thirds of all currently operational crypto funds have launched in the last seven quarters, through the third quarter of this year. Despite crypto funds rising in number over the past two years, the overall market picture is still bleak. The data provided by Crypto Fund Research shows that there are 303 crypto hedge funds at the moment. This is relatively low considering the financial markets has more than 9,000 hedge funds. Also, the crypto funds comprise of just $4 billion in asset value which is a meager amount compared to the $3 trillion controlled by the hedge funds in all markets. The rise in crypto hedge funds this year dismisses the theories by some who believe that funds, along with similar opportunities, see an influx of interest and investment in bull markets, but not in bear markets. Crypto hedge funds break from the norm Joshua Gnaizda, the founder of Crypto Fund Research, while commenting on the findings of the research stated that in 2018, explains that there has been a decrease in the launch of traditional hedge funds this year, however, crypto hedge funds have been an exception to the trend. He added that the bear market has been in play since the start of the year and regulatory uncertainty persists in much of the world. All those challenges haven’t stopped managers from launching new crypto hedge funds at a record pace. He went on to add that they don’t believe that the rate of new launches is sustainable long-term as there are some few signs that point to a possible slowdown. Crypto Fund Research meanwhile identified emerging markets in Australia, China, Malta, Switzerland, the Netherlands and the United Kingdom to rival traditional markets in the United States. Source link: 1 In 5 Hedge Funds Launched In 2018 Are Cryptocurrency Funds View the full article
  15. The Chairman of CFTC, J. Christopher Giancarlo, believes that the launch of Bitcoin futures has contributed immensely to the increased stability of the cryptocurrency. He further added that there has been a sizeable increase in institutional participation in the space and that this trend will help the crypto markets improve and mature. Bitcoin futures helped the market stabilize During an interview with Fox Business’s Maria Bartiromo, Giancarlo stated that the launch of Bitcoin futures and his agency’s do no harm strategy in allowing those products to begin trading in the face of criticism helped in stabilizing the market. He noted that those two moves played crucial roles in pooing the Bitcoin price bubble and stabilizing the market over the past few months. He stated on Friday, October 12 that according to the San Francisco Fed, it was the bitcoin futures emergence that actually busted the bubble in prices that started towards the end of last year. It has led to Bitcoin achieving a more sustainable level than it experienced last year. He was citing a research that was carried out by the San Francisco branch of the Federal Reserve which revealed that the Bitcoin futures launch triggered the decline in prices. It made that possible by providing institutional investors the opportunity to short BTC price. Most crypto enthusiasts thought that the launch of CBOE and CME Bitcoin futures towards the end of last year would lead to the massive entry of institutional investors and propel the market toward even greater highs. That hasn’t been the case though as the bear market has affected the prices of all the cryptocurrencies. Bitcoin has been trading around the $6,000 region over the past few months, leading to most analysts decreasing their end of the year price target for the cryptocurrency. Crypto market will mature with the help of institutional investors Giancarlo went on to note that there has been a noticeable increase in the number of institutional investors that are coming into the cryptocurrency market. He added that at the current pace, the crypto market will mature in no time and institutional investors should be thanked for that. He cautioned that there is still a long way to go as there are some issues that have to be resolved. The spot exchanges, the lack of transparency, multiple conflicts of interest, the absence of systems and systems safeguards are all causes for concern. Giancarlo, however, believes that with time, the market will mature and he expects that maturity to come sooner than expected. Talking about the role of the CFTC, Giancarlo stated that the agency has intensified its effort at identifying scammers and fraudsters and taking them out of the marketplace as soon as possible. Giancarlo also called for more innovation around blockchain-related products within the U.S as he believes that the industry has the potential to become a very huge one in the future. Source link: Crypto Market Will Keep Maturing As Institutional Investors Continue To Enter Crypto Market View the full article