Tokens Are “Decoupling From Ethereum” Signaling a Potential Bull Run, Analysts Claim

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Tokens Are “Decoupling From Ethereum” Signaling a Potential Bull Run, Analysts Claim

tokens-are-decoupling-from-ethereum-signaling-a-potential-bull-run-analysts-claim

Recently conducted analysis shows that ERC-20 tokens issued on the Ethereum blockchain are now seemingly decoupling from it, meaning their price is no longer mirroring that of ether. Instead, the tokens are creating their own platforms and communities.

According to Santiment, a popular data analytics platform, there are 10 ERC-20 tokens decoupling from Ethereum, and two of them have recently been listed on the popular San Francisco-based cryptocurrency exchange Coinbase.

In its report, Santiment cites three ERC-20 tokens that have decoupled from Ethereum: the Basic Attention Token (BAT), 0x (ZRX), and Maker (MKR). These three cryptocurrencies have, due to various factors, seemingly stopped following ETH’s price, and are now “dancing to their own beat,” the report states.

Ethereum's price compared to that of BAT and ZRX

In the image above, the blue line represents BAT’s price, while the purple one represents ZRX’s price compared to that of ETH, all against the US dollar. We can see that months ago the cryptocurrencies were seemingly following ETH’s trend line, but soon decoupled.

The BAT, as CryptoGlobe covered, surged last month after the Brave browser introduced a Chromium-based version of its software that’s reportedly 22% faster than the previous version. It also surged earlier this week, when Coinbase Pro revealed it was listing the token.

ZRX has also surged when Coinbase Pro announced it was listing it last month. The cryptocurrency, described as a “protocol that facilitates low friction peer-to-peer exchange of ERC20 tokens on the Ethereum blockchain” on its whitepaper, forms the foundation of Paradex, a decentralized crypto exchange being integrated into Coinbase’s trading platform.

The MKR token has likely decoupled thanks to its popular product, the DAI stablecoin. It has become a widely adopted cryptocurrency, that’s seemingly starting to be used as the de-facto stablecoin on decentralized exchanges. It’s algorithmically dollar-pegged, and has seen its market cap increase in the last few years.

Given these developments, Ethereum’s ERC-20 tokens now have a market cap of $12.8 billion, little over 60% of the total market cap of Ethereum itself. Per Santiment, these crypto network “are done waiting for ETH to bounce back: they’re paving their own bull run.”

While the cryptos decoupled from ETH, this doesn’t mean the network is getting left behind. The firm’s analysis adds:

Logically this price movement should eventually find its way to ETH as well. A similar pattern happened in 2016-2017 when ETH launched the explosive bull run and BTC followed. But the market is irrational enough that we prefer to stay in the present moment. And at this moment… the price dynamics of some tokens are now decoupled.

Ethereum, as CryptoGlobe covered, is now down nearly 80% against bitcoin, the flagship cryptocurrency, since the “Flippening” – the scenario in which ETH becomes the number n crypto by market cap – seemed imminent.

Lawyer Invests $300 Million to Build Crypto City in the Nevada Desert

Consumer protection lawyer Jeffrey Berns is the owner and CEO of Blockchains LLC, a company that bought more than 67,000 acres of land in northern Nevada for $170 million earlier this year. On Thursday, he revealed plans to build a crypto city in the desert, claiming to have invested $300 million to make it a reality.

Also Read: Bitcoin Trader Faces Five Years in US Jail for Unlicensed Money Transmitting Business

Welcome to Sandbox City

Lawyer Invests $300 Million to Build Crypto City in the Nevada DesertBerns, who focused primarily on class action suits against big financial services companies during his law career, reportedly made a fortune by investing in Ethereum in 2015. Now he wants to give back to the crypto community and leave his mark on the world by establishing Sandbox City.

The sprawling complex is meant to be a model for running a smart city with a decentralized blockchain infrastructure powering all interactions. It will house a high-tech park for ventures combining blockchain technology with artificial intelligence (AI), 3D printing and nanotechnology. The planned city will include residential units for thousands of people to live in, alongside shops for commerce. The area will also host an esports arena and a studio for creating music, movies and games.

A Friendly Bank and Nuclear Bunkers

Lawyer Invests $300 Million to Build Crypto City in the Nevada DesertBesides giving developers a place to gather, and investors an attractive tax location, Blockchains LLC has a few more offers for the industry.

According to the launch event speech by the CEO, he bought two decommissioned military bunkers in different parts of the United States in order to offer secure physical digital asset storage. For storage outside the U.S., the company also acquired a “fortress” under a granite mountain in Switzerland, and one in Sweden.

Berns also said he bought a bank that he promises to make the most friendly fiat banking solution for the cryptocurrency ecosystem. He explained that he decided to take this move when his own bank blocked all his cards after he outed himself as a Coinbase customer in order to fight in court against the IRS demand for the exchange to hand over all client data.

The company has also signed a Memorandum of Understanding with Nevada’s electricity public utility, NV Energy, agreeing to work together on energy projects powered by blockchain technology.

Does cryptocurrency technology development require a dedicated city? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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Grayscale Investments’ Q3 Report Shows Institutional Investors Are Taking Positions in Bearish Crypto Market

The Digital Currency Group-owned digital currency investment company, Grayscale Investments, has published its quarter three (Q3) 2018 report. The report highlights that institutional investors have made up the majority of its fund inflows in the last three months, which suggests that “smart money” may be buying into digital currencies in anticipation of an upcoming rally.

70 Percent of new Money from Institutional Investors in Q3/2018

Grayscale Investments provide investments trusts that hold digital currencies and, thereby, enables institutions and accredited investors to invest in digital assets through a regulated investment vehicle. Currently, Grayscale offers single-asset exposure to BTC, BCH, LTC, ETH, ETC, XRP, ZEN, and ZEC, and runs a digital asset large-cap fund that invests in a portfolio of composed of BTC, LTC, XRP, ETH, and BCH.

The Grayscale Digital Asset Investment Q3 Report shows that $81.1 million has flown into Grayscale’s digital currency trusts of which 70 percent came from institutional investors. Year-to-date, $329.5 million of new funds have flown into Grayscale’s investment products with a total of 59 percent coming from institutional investors.

This data suggest that financial institutions are increasingly opening up to investing in bitcoin and other digital assets, albeit through a regulated investment vehicle. The data may also indicate that those institutional investors who are brave enough to venture into digital asset investing are buying bitcoin and other digital currencies now in anticipation of a rally in the near future.

What Are Investors Buying?

Grayscale offers eight single-asset funds and one diversified digital asset fund. However, the majority of inflows have been into the Bitcoin Investment Trust as opposed to the company’s range of altcoin funds.

In the third quarter of 2018, 73 percent of new inflows went into the Bitcoin Investment Trust; Year-to-date that figure stood at 66 percent. This suggests that the majority of investors still prefer to invest in the world’s largest and most popular digital currency as opposed to its higher-risk peers from the altcoin market.

The second most popular fund has been the Ethereum Classic Trust, which was the first altcoin-based trust Grayscale, launched in April 2017. The recently launched ZEN Investment Trust was the third most popular fund in Q3/2017 after BTC and ETC.

Roughly an equal number of new funds went to XRP, BCH, ZEC and Grayscale’s diversified digital asset fund in the last quarter while Litecoin and Ether received only very little investor interest.

Who Are the Investors?

Interestingly, Grayscale’s quarterly report also gives an insight into the type of investors that have been buying shares in its digital currency funds. As already mentioned, institutional investors make up the largest segment of investors in Q3/2018 (70 percent).

What may come as a surprise for some, the second largest investor group have been retirement accounts that have also been diversifying into digital currencies. In Q3, 18 percent of new funds came from retirement accounts.

Accredited investors, i.e.high-net worth individuals, contributed to 11 percent of new fund inflows in Q3/2018. Finally, one percent of inflows came from family offices.

The majority of new funds came from U.S.-based investors (64 percent) while 34 percent of the new money came from offshore investors. Finally, “other investors” contributed to two percent of new fund inflows into Grayscale’s products.

Bitcoin Recap: Here’s What Happened the Month BTC Turned 10

October 2018 was the 120th month of Bitcoin’s existence – that’s ten years – and besides important anniversaries, there was plenty going on in the world of Bitcoin.

On the market side of things, bitcoin and the rest of the cryptoasset industry were quite placid. October saw record lows in price movement/volatility for the year – and even beyond – in terms of bitcoin price action, and highs for dormant bitcoin wallets.

In somewhat the same vein, Chainanalysis found that the “role of whales in the Bitcoin market may be overstated,” and that what few real “whales” that exist are mostly supporting Bitcoin’s price – buying not selling.

Bitcoin’s Tech Grew

For what bitcoin transactions remained, however, the use of SegWit reached all time highs of over 50% – which might leave AntPool, hardware miner manufacturer Bitmain’s proprietary mining pool, out in the cold for (politically) passing on mining SegWit transactions.

SegWit is also a prerequisite for using the experimental Bitcoin Lightning Network – an off-chain payments network running atop Bitcoin – which is now running on more than 12,000 open channels. The mobile version of Lightning, Neutrino, is also showing big strides with a running alpha version released this month.

Bitcoin’s core software also got some upgrades, with the new version 0.17 allowing incremental increases in privacy through address-masking, as well as ease-of-use improvements.

Bitcoin Throughout the World

In China, the status of bitcoin and cryptocurrency was further clarified, following a ruling of the Shenzhen Court of International Arbitration which ruled that virtual assets are protected under law as general property, even if some monetary capacities are not recognized.

Someone gave Janet Yellen, former U.S. Federal Reserve chair, some bitcoin after she said she was “not a fan” of the seminal cryptocurrency. She apparently responded (apocryphal) maybe “to know it” will be “to love it.”

There was plenty to love for someone, who sent $194 million worth of bitcoin this month for the equivalent of only a $0.1 fee, instead of the thousands it would have cost through the legacy system. Admittedly, fees have been much higher in the past during periods of high network congestion.

While BTC’s price is still flirting with the $6,300 – $6,400 marks, the number of crypto ATMs in the world has surged past 3,900. Finally, arguably the best thing to happen in Bitcoin this month was eToro’s (not) investment advice: HODL.

The Fed’s Looming Interest Rate Hike Could Hit Cryptocurrencies Hard

St. Louis Federal Reserve Bank: 3 Qualities Bitcoin and Cash Share Altcoins

The Fed’s Looming Interest Rate Hike Could Hit Cryptocurrencies Hard


A rising interest rate environment courtesy of the Federal Reserve could hit deflationary cryptocurrencies hard, according to Robert Leshner, who spoke to Fortune about why he started a company called Compound.


Fed Expected to Hike Interest Rate

In the interview, Leshner points out that cryptocurrency has so far only existed in a low interest-rate US economy. As this starts to reverse, a series of rate hikes by the Federal Reserve put crypto in uncharted waters.

Currently, the odds of an increase in interest rates by 200-225 bps at the next Fed meeting scheduled for November 8th is over 90%.

Leshner feels that this could hit crypto markets hard. He says:

We’re finally starting to enter an environment of rising interest rates which crypto has never seen before and it’s going to be potentially challenging to the price of a lot of crypto assets just like it will be for a lot assets in general, including equities.

If we save money in a bank we can earn interest. The bank pays for this by lending our money to other people in return for more interest. This is obviously a very simplified explanation, and in recent times, the amount of interest that we can earn has been minimal.

Perhaps this is the reason nobody has asked the questions, “Why can’t we do the same with our crypto-assets? Why will nobody pay to hold our bitcoin?”

To rectify this, self-proclaimed interest-rates guy, Leshner, formed the company, Compound. It allows token holders to store their cryptocurrency and earn interest.

Although not currently supporting bitcoin 00, it does list four tokens and is looking to include others. It is currently allowing users to vote on which stablecoin to add.

Stablecoins Are In

Leshner predicts an influx of stablecoins onto the market, claiming there could soon be more than 50. He finds it unsurprising that so many companies are vying to enter the space, due to the clear benefits for issuers.

The investors eager to buy these coins are essentially just lending the issuers money at zero interest. And often paying transaction charges for the honor. This is hard to say, but… wouldn’t they be better off going to a bank?

Stablecoin Analysis: Panacea to Crypto Volatility or Disaster Waiting to Happen

Compound provides an interest paying marketplace where listed currencies can be lent or borrowed. Leshner hopes that the increase in fiat currencies getting tokenized will drive traders and arbitragers to his site.

When questioned on the benefits of a marketplace like compound, over the already established forex markets, he had this to say:

The advantage of tokenization is it brings transparency and programability to currency. When dollars are open to blockchain there’s so much more innovation that can occur.

Will rising interest rates hurt deflationary cryptocurrencies? Share your thoughts below!


Images courtesy of Shutterstock

Bitcoin Cash Spikes 20 Percent in the Wake of Upcoming Hard Fork Backed by Binance

 

Sunday, Nov. 4: crypto markets have seen a lot movement today, with most of the top 20 coins by market cap seeing significant growth, and with Bitcoin Cash (BCH) spiking almost 21 percent by press time.

Market visualization

Market visualization from Coin360

Bitcoin Cash, the fourth top cryptocurrency by market capitalization, has grown sharply from $473 at the beginning of the day to as high as $573 as of press time, which is the highest trading point of the cryptocurrency over the past month. Trading around $420 for the most part of the week, Bitcoin Cash started this upward trend on Nov. 2.

The fourth top coin is up around 30 percent over the past 7 days in the wake of the now-second largest global crypto trading platform Binance recent announcement of support for Bitcoin Cash’s upcoming hard fork.

Bitcoin Cash 7-day price chart

Bitcoin Cash 7-day price chart. Source: CoinMarketCap Bitcoin Price Index

While most top cryptos have seen an influx of gains, Bitcoin (BTC) is one of few coins that suffered some losses today. As of press time, the major cryptocurrency is down some 0.4 percent and trading at $6,327. The coin is down around 2.2 percent over the past 7 days, and Bitcoin’s dominance on the market has slightly dropped over the day from 53.3 percent to its current 52.5 percent.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap Bitcoin Price Index

Ethereum (ETH), the second cryptocurrency by market cap, is up almost 1.5 percent over the past 24 hours and trading at around $203 at press time. The coin is down around 0.7 percent over a 7 day period.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: CoinMarketCap Ethereum Price Index

Ripple (XRP), the third top cryptocurrency by market cap, is seeing similar gains, up around 1.3 percent and trading at $0.46. The cryptocurrency is balancing its weekly gains, up around 0.8 percent over the past 7 days.

Ripple 7-day price chart

Ripple 7-day price chart. Source: CoinMarketCap Ripple Price Index

Total market cap has seen a significant rebound up to about $209 billion at press time. Earlier this week, the total capitalization of crypto markets had dropped to as low as $201 billion. Daily trade volume has seen a sharp spike from yesterday’s $10 billion, amounting now to $13 billion.

Total market capitalization chart

Total market capitalization chart. Source: CoinMarketCap

Other altcoins that have seen sufficient growth today are Litecoin (LTC), Cardano (ADA), and Dash (DASH). All the coins are up more than 7 percent over the past 24 hours, and trading at $55, $0.08, and $166 respectively at press time.

Another coin that has experienced some losses on the day along with Bitcoin is NEM (XEM), which is down around 0.6 percent and trading at $0.09 at press time.

Major global crypto exchange Binance had confirmed on Nov. 2. they will support the upcoming Bitcoin Cash hard fork, which will take place when “the median time past [1] of the most recent 11 blocks (MTP-11) is greater than or equal to UNIX timestamp 1542300000.”

The exchange notified its users that deposits and withdrawals of Bitcoin Cash will be suspended starting on Nov. 15, claiming that users should leave enough time for deposits to be processed in “full prior to this time.”

Meanwhile, tomorrow, Nov. 5, the U.S. Securities and Exchange Commission (SEC) will face a deadline for reviewing proposed rule changes related to a series of applications to list and trade various Bitcoin exchange-traded funds (ETFs).

Kik’s Native Cryptocurrency, KIN, Is Now Usable on 12 Mobile Apps

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Kik’s Native Cryptocurrency, KIN, Is Now Usable on 12 Mobile Apps

kiks-native-cryptocurrency-kin-is-now-usable-on-12-mobile-apps-1

Over the past few weeks, 10 new mobile apps that use the native cryptocurrency of the popular Kik messaging app, KIN, were launched. were launched. The cryptocurrency was created last year after Kik held a $98 million ICO.

On these apps, users can spend the token to buy features and even earn KIN for performing tasks. For example, Blastchat is a social networking site that in a way similar to Steemit, rewards users with tokens for posting, and curating content on the platform.

The KIN token was originally launched on the Ethereum network, but was later moved to Stellar so that it could take advantage of zero-fee transactions. There are currently eight Android apps that have integrated the cryptocurrency. These include a social goals app called GoChallenge.me, a mental health one called Vent, and a social tipping one called Kinny.

There are also two new apps being launched for iOS devices. One is Blaschat, an instant messaging app referred to above, while the other one is called Pause For and is set to help users’ productivity.

These aren’t the first apps launched using the KIN token. KIN has previously partnered with beauty app Perfect365, an app that delivers an augmented reality experience to its users, to incorporate rewards on its platform. There’s also the Kinit app, which is “Kin’s rewarding app.” This app allows users to make money for completing tasks, such as surveys and quizzes.

Despite these issues, KIN is running into technical issues. Currently, users cannot deposit or withdraw KIN tokens from the apps, but KIN’s team says that they’re working on it.

Ayelet Laub, product manager for Kin, explains: “the app needs to reveal the user’s public wallet address. We need to figure out how to do it in the easiest way and most user-friendly way,” Laub also commented on the direction KIN is trying to take with the token.

Hodler’s Digest, Oct. 29 – Nov. 4: Rapper T.I., Charlie Shrem Sued Over Alleged Pump-and-Dump, BTC Theft Respectively

 

Top Stories This Week

Coming every Sunday, the Hodler’s Digest will help you to track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.

Top Stories This Week

US Rapper T.I. Sued for $5 Million After Alleged Failure of FLik Token

U.S. rapper T.I. is being sued for $5 million by a group of 25 persons who have alleged that the rapper’s promotion of FLiK tokens led to a loss of around a $1.3 million investment. The plaintiffs allege that T.I. and his business partner Ryan Felton promoted the “now worthless securities” on social media, creating a false impression of a “valuable liquid investment.” The lawsuit writes that T.I. and Felton defrauded them by driving the token’s price up with money from the investment, and then dumping the token when the price dropped.

The Winklevii Sue Charlie Shrem for Alleged Theft of 5,000 BTC in 2012

Tyler and Cameron Winklevoss have claimed in a new lawsuit that Bitcoin Foundation founder Charlie Shrem has “stolen” 5,000 Bitcoin (now $31.7 million) from them in 2012. According to a recently unsealed lawsuit, the Winklevii allege that Shrem failed to repay the twins as part of their investment in his extant project BitInstant. Shrem’s lawyer has called the claims “erroneous,” noting that his client will “quickly clear his name.” The judge overseeing the case has “agreed to freeze” some of Shrem’s assets in response to the case.

BTC Wallet Xapo Founder Says Bitcoin’s Current Stage Compares to 1992 Internet

Bitcoin “Patient Zero” Wences Casares, the founder of BTC wallet startup Xapo, said that Bitcoin may take years to become successful. In an interview this week with Bloomberg, Casares said that Bitcoin “may work, it might not work,” noting that the currency is in the early stages of its development, similar to that of the Internet in 1992. Casares gave a rough seven-year timeline for determining whether Bitcoin is successful, noting that if it is, it will become a non-political global standard of value and settlement.

Crypto Exchange and Wallet Coinbase Raises $300 Million in New Funding Round

Major U.S. crypto exchange and wallet Coinbase has raised $3 million in its latest funding round, bringing its post-money valuation to about $8 billion. Tiger Global Management reportedly led this recent Series E equity financing round, with participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, and Polychain, among others. Coinbase noted that the funds will be used for the purpose of “accelerating” crypto adoption, noting plans to support regulated fiat-crypto trading worldwide, and laying the foundation for supporting “thousands” of cryptos in the future.

Climate Change Report Finds Bitcoin Usage Could Raise Global Temperature by 2 C

A new reported published by climate change scientists has raised warnings about the effects of Bitcoin’s carbon footprint on global environment. According to their research, which is based on the existing data for BTC’s electricity consumption in conjunction with different projections for the crypto’s future adoption, the cumulative emissions of BTC usages would “cross the 2 C threshold within 22 years.” Even if Bitcoin follows a faster adoption path, it could cross that threshold in just ”11 years.” The report notes that while more efficient hardware could reduce BTC’s carbon footprint, one can’t relay on “yet-to-be-developed hardware.”

Most Memorable Quotations

Most Memorable Quotations

Ella Pamfilova

“The word ‘block’ is immediately associated with something closed. In Russia, where a third of the population was held behind bars… Next you have ‘chain’. ‘Block’ and ‘chain’ — it works on a subconscious level,”  — Ella Pamfilova, the head of the Russian Election Commission

Jamie Dimon

“I never changed what I said, I just regret having said it. I didn’t want to be the spokesman against Bitcoin. I don’t really give a sh*t, that’s the point. Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency,” — Jamie Dimon, JPMorgan CEO

John McAfee

“[Crypto is] all I’m going to talk about. See, I don’t want to be president. I couldn’t be… no one’s going to elect me president, please God. However, I’ve got the right to run,” — John McAfee, crypto enthusiast

Laws and Taxes

Laws and Taxes

Ukraine Development, Trade Ministry Creates State Policy for Legalizing Crypto

Ukraine’s Economic Development and Trade Ministry announced this week that it has initiated a “state policy” for the classification and legalization of crypto-related activities. According to the ministry’s press release, the purpose of the policy is to “create understandable conditions for conducting activities in the field of virtual assets and virtual currencies,” and to usher in “adoption of the concept of a state policy” for crypto. The policy specifically suggests creating legal definitions for key terms like “virtual currency” (“cryptocurrency”), “virtual assets,” Initial Coin (or Token) Offerings (ICOs or ITOs), cryptocurrency mining, “smart contracts,” and “tokens.”

Brazil’s Tax Regulatory Creates Draft Regulation for Crypto Taxes

The Department of Federal Revenue of Brazil (RFB) wants to receive monthly reports on crypto assets operations, according to recently released draft legislation. In the draft bill, the RFB would require Brazil-based crypto exchanges to send them detailed reports on all crypto-related operations on a monthly basis. The bill also notes that legal entities and individuals living in Brazil would be required to report all transactions with foreign crypto exchanges if they are over than R$10,000 (about $2,700) per month.

Adoption

Adoption

Crypto Investment Firm Greyscale Reaches $330 Million in Revenue

Crypto asset management firm Grayscale Investments Inc. has reported around $330 million in revenue in 2018, according to its third quarter investment report, despite the currently prevailing bear market. In the recently released report, Grayscale notes that they have raised $81.1 million over the last three months, representing an increase of almost 1,200 percent from the same period in 2017. Grayscale writes that this is the strongest calendar year the firm has experienced since the beginning of its activity.

New York Regulator Grants BitLicense to Bitcoin ATM Operator Coinsource

The New York State Department of Financial Services (NYDFS) has granted a virtual currency license, the BitLicense, to Bitcoin ATM operator Coinsource. The regulatory approval means that New Yorkers can use cash to buy or sell Bitcoin using Coinsource’s “Bitcoin Teller Machines (BTMs),” of which there are 40 machines currently deployed across the state in three counties. This is the first BTM operator to receive the BitLicense, and the regulator notes that its decision came following a comprehensive review of Coinsource’s application and requirements for AML and CFT measures.

Morgan Stanley Report Classifies Cryptocurrency as New Institutional Investment Class

A new report from investment bank and financial services firm Morgan Stanley notes that Bitcoin and altcoin have been a “new institutional investment class” since 2017. According to the document, the “surprises” to be seen in crypto in 2018 are a “strong” formation of new funds targeting the nascent sectors, as well as the “growth” of crypto-tied futures. The report also touches on decentralized technology, noting that it makes the world “better.”

Crypto Exchange and Wallet Coinbase Executive Reveals Plans to Add up to 300 Coins

Major U.S. crypto exchange and wallet Coinbase may offer as many as 300 more coins in the future, according to an interview with the company’s president and COO. Speaking to Bloomberg, Asiff Hirji said that Coinbase planned on avoiding complex U.S. regulations on crypto tokens by offering more assets to non-residents, noting that the number could jump from its current seven to “200-300” over the next year. Moreover, Hirji noted that the company will not perform an IPO “any time soon.”

Mergers, Acquisitions, and Partnerships

Mergers, Acquisitions, and Partnerships

Chinese Retail Giant JD.Com Partners With Tech Institutes for Blockchain Research Lab

Chinese e-commerce firm JD.com will launch a research lab for blockchain in partnership with two technology institutes: the Ying Wu College of Computing at the New Jersey Institute of Technology and the Institute of Software at the Chinese Academy of Sciences (ISCAS). According to the release, the lab aims to develop solutions for efficiency problems and examine new applications and uses cases of blockchain tech, as well as specifically researching consensus protocols, privacy protection, and security in DApps.

Nasdaq to Integrate Microsoft’s Azure Blockchain Tech Following Partnership

American software firm Microsoft will integrate its Azure blockchain technology into stock exchange Nasdaq Inc.’s Financial Framework (NFF). According to this week’s announcement, Microsoft will collaborate with Nasdaq to develop a “ledger agnostic blockchain capability” that will allow for operability across multiple ledgers. The release also notes that the new product can facilitate easier buyer and seller matching, management of delivery, and payment and settlement of transactions, as well as allow NFF customers to deploy various blockchain through one common interface.

Belgian-Based Investment Firm Acquires Crypto Exchange Bitstamp

Crypto exchange Bitstamp has been acquired by Belgian-based investment firm NXMH in an “all cash deal” this week. The CEO of Bitstamp told Reuters that the exchange was valued at $60 million in 2016, up from $39 million in 2014. NXMH is a subsidiary of South Korean-based media giant NXC Corp., which bought a 65.19 percent stake in South Korean exchange Korbit last year. NXMH now has an 80 percent stake in Bitstamp, with the CEO retaining his 10 percent ownership interest and staying on as CEO. The exchange noted that it is looking towards “global expansion” with the new deal.

Report: Bithumb Signs Deal With US Fintech Firm to Launch Securities Token Exchange

South Korean crypto exchange Bithumb has reportedly signed a deal with American crowdfunding platform SeriesOne in order to open a securities token exchange. A South Korean news outlet was told by its sources about the partnership, with at Bithumb official reportedly adding that the exchange plans to increase its efforts to develop into a worldwide financial firm. The sources also told the news agency that the exchange will be established by SeriesOne in the U.S. during the first half of 2019, with Bithumb to provide investment and the technical support for the exchange’s operations.

Controversial Stablecoin Tether Releases Letter Confirming New Banking Partner

The issuer of cryptographic stablecoin Tether has released a statement this week, confirming that it will now be banking with Bahamas-based Deltec Bank & Trust. Tether had previously been the subject of rumors about its ability to back up its tokens 1:1 with fiat after it parted ways with previous financial institution Noble Bank. This week’s statement, purportedly from Deltec Bank, reads that the USDT in the market are “fully backed by US dollars that are safely deposited in our bank accounts.”

Funding Rounds

Funding Rounds

Berkshire Hathaway Invests $600 Million in Two Fintech Payment Firms

Multinational holding conglomerate Berkshire Hathaway, whose CEO and chairman is crypto critic Warren Buffett, has invested about $600 million in two fintech payment firms that focus on emerging markets. The investments are reportedly headed by Todd Combs, one of Berkshire’s two portfolio managers, and go outside the purview of investments normally made by the company. The first is a roughly $300 million stake in the parent company of India’s largest mobile-payments service Paytm, and the second is a purchase of shares in an IPO for Brazilian payments processor StoneCo.

Sequoia USA Participates in $30 Million Funding Round for Israeli Blockchain Startup

Israeli blockchain startup StarkWare Industries has ended a $30 million funding round with participation from Intel Capital and Sequoia USA. The funding round, which was led by crypto hedge fund Paradigm — founded by Coinbase co-founder Fred Ehrsam — also included Atomico, DCVC, Wing, Consensys, Coinbase Ventures, Multicoin Capital, Collaborative Fund, Scalar Capital and Semantic Ventures. StarkWare Industries develops software and hardware, with applications including transparent privacy in blockchain, increased transaction throughput, as well as off chain computation.

Winners and Losers

Winners and Losers

Winners and Losers

The week has seen continued relative market stability, with Bitcoin at around $6,371 and Ethereum at about $200. Total market cap is at around $208 billion.

The top three altcoin gainers of the week are Etheera, Mero, and Mindexcoin. The top three altcoin losers of the week are YENTEN, empowr coin, RusGas.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

FUD of the Week

FUD of the Week

CryptoTrader Host Ran NeuNer Rescinds Claim That BTC Will Hit $50K in 2018

Ran NeuNer, the host of CNBC’s CryptoTrader, has retracted his earlier prediction that Bitcoin will reach $50,000 by the end of 2018. Speaking privately to Cointelegraph, NeuNer stated that he changed his prediction due to the recent state of the market, noting that the bear market status and the lack of “good news” moving the market made him lower his expectations. NeuNer had originally tweeted in February of this year that Bitcoin will finish 2018 at $50,000, and has updated it with a new pinned tweet that Bitcoin “will not” finish 2018 at $50,000.

Former US Federal Reserve Chair: Bitcoin Is “Anything But” a Useful Store of Value

Former U.S. Federal Reserve chair Janet Yellen said this week that Bitcoin is “anything but” a useful store of value. Speaking during an interview at the 2018 Canada FinTech Forum in Montreal, Yellen noted that Bitcoin’s failure to be a stable source of value means that it is not a useful currency, adding that it’s “very slow” at payments and has difficulty “because of its very decentralized nature.” Yellen is known in the Bitcoin community due to an incident when a Bitcoin fan held up a handwritten “Buy Bitcoin” during her televised speech on interest rates and reserve policies last July.

“Godfather of ETFs” Says Bitcoin Exchange-Traded Funds Will Not Be Approved Soon

Reggie Brown, the so-called “godfather of ETFs,” said this week that Bitcoin exchange-traded funds (ETFs) will be certified “no time soon.” Browne, who is a senior managing director and head of ETF trading at financial services firm Cantor Fitzgerald, noted during a speech that BTC ETFs will only be approved after the development of a robust regulatory framework in the industry. Browne noted that it is “very difficult” for the SEC to “wrap their heads around a positive approval” due to a lack of data.

Report Finds Lack of Diversity in Ethereum Smart Contracts Could Pose Risks

A report from a group of analysts at Northeastern University and the University of Maryland said this week that a lack of diversity in Ethereum (ETH) smart contracts poses a risk to the ETH blockchain ecosystem. According to the researchers, since they found that most Ethereum smart contracts are “direct- or near-copies of other contracts,” the risk arises if copied smart contract contains a vulnerable or buggy code. The study, which was partially supported by the U.S. National Science Foundation, analyzed Ethereum smart contracts’ bytecodes during its first 5 million blocks over an almost three-year timeframe from the cryptocurrency’s inception in 2015.

American Faces 5 Years in Prison for Operating Unlicensed Business via LocalBitcoins

A U.S. citizen has pled guilty this week in federal court for operating an “unlicensed money transmitting business” through LocalBitcoins.com. Jacob Burrell Campos allegedly admitted selling “hundreds of thousands of dollars” in BTC to more than 1,000 customers from January 2015 to April 2017, meaning that he operated an unregistered “Bitcoin exchange.” According to the court, it is illegal in that Burrell did not register his business operation with the U.S. Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and failed to apply AML regulations on the sources of his clients’ funds.

Prediction of the Week

Prediction of the Week

Crypto Winter Could Last 12 to 18 Months, Says CEO of Top Derivatives Platform BitMEX

Arthur Hayes, the CEO of major crypto derivatives platform BitMEX, said this week that “based on previous experience,” the low volatility and volume trading climate could continue for “another 12 to 18 months.” Hayes noted that he has been in the Bitcoin space since 2013, and based his current predictions on his experience in the 2013-2015 “nuclear bear market.”

Best Cointelegraph Features

Best Cointelegraph Features

Bitcoin White Paper — 10 Years Since Satoshi’s Vision Was Brought to Life

Cointelegraph celebrates the 10 year anniversary of Satoshi Nakamoto’s release of the Bitcoin white paper with an overview of the white paper’s influence, a brief history of the cryptocurrency, and an interactive quiz to find out how “expert” our readers’ knowledge of Bitcoin is.

Trend of Global Crypto Mining: Despite the US-China Trade War, Activity Surges as Samsung and GMO Enter

As the crypto markets see the fourth worst correction in their nine-year history, the hash power of the Bitcoin network continues to increase. Cointelegraph contributor Joseph Young delves into how crypto mining manufacturing giant Bitmain will compete with the emergence of products from Samsung and GMO into the market, as well as the effects on mining due to the ongoing U.S.-China trade war.

Skirting the Great Wall: The Chequered Saga of Crypto in China, 2018

Part two of Cointelegraph’s series on China and cryptocurrency gives an in-depth analysis of what exactly is going on in China in the aftermath of the country’s ICO ban, and why regulators continue to attempt to curb the rise of crypto trades.

Turkish Police Arrest 11 Suspects in Alleged Hack of Cryptocurrency Wallet Accounts

The Cybercrime Department of the Turkish National Police has arrested 11 suspects in an alleged hack of crypto accounts, with victims reporting more than $80,000 in losses, major Turkish newspaper Hürriyet reported Friday, Nov. 2.

According to the article, 14 individuals have reported to local prosecution authorities that their crypto wallets were hacked with their Bitcoin (BTC) transferred to other wallets. Following the complaints, the Istanbul police launched an investigation against a group of hackers that had allegedly compromised users’ emails, crypto wallets’ accounts data, and passwords.

On Oct. 26, cybercrime unit agents detained 11 people in multiple locations in Istanbul as a result of joint raids with special operations department Harekat police. Ten suspects were taken into custody, with one of them reportedly released on the condition of then remaining under further “judicial control.” Police have also seized from the alleged hackers two fake identity cards, as well as a number of devices allegedly used in the hacks such as 18 mobile phones and SIM cards, 22 memory sticks, and other items.

According to Turkish prosecutors, the amount of stolen Bitcoin is worth around 437,000 Turkish lira, or more than $80,000. The group of attackers allegedly moved the stolen crypto to multiple accounts in an attempt to cover their tracks before subsequently selling it for fiat.

During the investigation, the cybercrime unit identified some suspects by tracking new SIM card numbers registered to crypto exchange accounts by the hackers. Police agents also tracked the suspects who tried to withdraw the stolen assets from ATMs and banks based on records by multiple security cameras. The article says that the investigation is ongoing, with policemen looking for more victims of the hackers.

In August this year, Cointelegraph reported on the Turkish lira’s collapse, triggering more interest by the Turkish people in buying decentralized cryptocurrencies like Bitcoin (BTC). The lira dropped by 50 percent against the U.S. dollar by August 2018, seeing the all-time lows due to geopolitical factors.

On Aug. 22, police in California detained an alleged hacker who stole Bitcoin worth more than $1 million by hijacking cellphones. The attacker, Xzavyer Narvaez, reportedly used the “SIM swapping” method, also known as a “port out scam,” to steal crypto from victims’ devices.

In October, Vice Media-backed U.S. tech news agency Motherboard reported that Oklahoma City authorities arrested a man allegedly considered to be one of the “most infamous” SIM swappers, who had reportedly stolen cellphone numbers and used them in cryptocurrency thefts. The hacker Joseph Harris, 21, is accused of stealing $14 million in crypto from blockchain startup Crowd Machine.

Tron (TRX) Long-term Price Analysis

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Tron (TRX) Long-term Price Analysis

tron-trx-long-term-price-analysis

TRXUSD Long-term Trend – Ranging

Distribution territories: $0.040, $0.050, $0.060

Accumulation territories: $0.015, $0.010, $0.005

At around August 3, the price of TRON’s TRX token entering a ranging position that it has since not been able to get out of, between the $0.03 and $0.02 territories. The cryptocurrency briefly managed to rise above its indicators on two occasions, but remained within the range

Tron, TRXUSD, Cryptocompare chartTron Chart by TradingView

TRX’s price went down to about $0.016 on August 13, and this has been the support line it has been maintaining. Its price has been ranging along the 14-day SMA’s trend line, close to the 50-day SMA.

The Stochastic Oscillators have moved from the oversold zone to point north-east below range 40. This could mean that the market doesn’t have a clear path for the near future. It appears the cryptocurrency will go through ranging movements in the next few days or weeks, until it eventually breaks the territories stated above.

Some believe a bullish reversal may come when TRX gets close to the $0.02 price territory.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.