A month after India announced strict restrictions on cryptocurrency transactions, trading volumes have surged
Archives for May 6, 2018
Chinese state media outlet, Voice of China, has published reports criticizing the efforts of Chinese cryptocurrency exchanges and initial coin offerings (ICOs) to continue operations in spite of the central government’s 2017 crackdown.
State Media Criticizes Cryptocurrency Exchanges’ Defiance of Crackdown
Voice of China’s reports state that “On September 2017, seven ministries and commissions of the Central Bank issued the ‘Announcement on Preventing the Risk of Issuance of Coinage Offerings’, requiring that any institution not engage in the interaction between legal currency, tokens, and ‘virtual currency’.”
One of the reports states that despite the official ban, companies operating in the cryptocurrency sector sought “to take advantage of the rising tide of rising bitcoin prices,” and alleges that many of China’s cryptocurrency exchange “platforms immediately set up overseas websites and continue to provide digital currency services to mainland users as overseas companies.”
Voice of China Targets Okex
The Voice of China reports pays considerable attention to Okex, accusing the company of using shell companies to obfuscate its Chinese operations, in addition to offering unlicensed securities.
The report states that “After the national ban was issued, OKCoin transferred all user data and digital currency to the OKEx Exchange, which was established outside China.” Voice of China also quote an Okex customer who believes that the company “is only nominally moving the company overseas, claiming to be headquartered in Belize, and the team is Hong Kong, but in fact, still operates the entire company in Beijing, and the users are almost all Chinese.”
State Media Claims Number of Chinese ICOs Increasing Despite Ban
Voice of China also published a report focusing on initial coin offerings that accuses many Chinese ICOs of operating in clear defiance of the central government’s directives.
The report states that the September document issued by various Chinese government institutions declared the “issuance of tokens is essentially an unauthorized and illegal public financing.” The document accused many ICOs of violating financial laws through “illegally issuing tokens, [the] illegal distribution of securities, and illegal fundraising,” in addition to “Financial fraud, pyramid schemes and other illegal and criminal activities.”
Professor Criticizes “One Size Fits All” Cryptocurrency Regulations
Despite the critical description of ICOs, the report quotes Deng Jianpeng, a professor at The Law School of the Central University for Nationalities who is purported to possess extensive experience in observing and analyzing cryptocurrencies. Mr. Jianpeng advocates for a dynamic, global. and flexible regulatory apparatus that caters to the fostering of innovation, and criticizes “one size fits all” and prohibitive legislative proposals regarding cryptocurrencies.
According to a rough translation, Deng Jianpeng stated: “digital currency has a very typical global character, resulting in a simple prohibition of no effect in the physical space. Therefore, if we think about fine-tuning the regulatory rules, it is absolutely not allowed to do public offerings. Fraud is absolutely necessary to crack down on criminal law, but if it is private equity is also true entrepreneurship. Is it possible to have some special channels, such as approval by a specific agency, to avoid the embarrassing situation of supervision? This thing is worth rethinking.”
Do you think that China will be able to crackdown on the continued operation of cryptocurrency platforms that are based offshore yet target Chinese investors? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Okex
Need to calculate your bitcoin holdings? Check our tools section.
The post Chinese State Media Accuses ICOs and Exchanges of Defying Crackdown appeared first on Bitcoin News.
In the top 10, EOS tops the losers list after shedding 14 percent last week. Technically, it seems like EOS might add up their losses especially if prices fail to breach $18.55 in the coming days. On the flip side, IOTA leads the toppers after gaining 15 percent and news of Porsche partnership is definitely buoying prices. This and Litecoin recovery is what we should be looking at today.
Let look at these charts:
So, over the weekend Weiss Cryptocurrency Ratings ended up praising EOS. This is not a surprise because considering the accelerated work going on with EOSIO. Of course they are preparing to launch next month so many would be lauding the good work going on at EOS GitHub.
Remember, EOS objective is all about creating this perfect DApp architecture where horizontal and vertical scaling is possible. With Dawn 4.0, there is improvement and patches on last release with exciting features as Ram allocation Model, Exchange Integration Support and others.
— EOS (@EOS_io) May 5, 2018
Besides this release, Etoro account holders can now trade EOS against fiat and other cryptocurrencies as BTC or ETH.
From our chart, EOS is down 16 percent in the last seven days. Despite that we remain bullish, we need prices reverse last week losses and if possible print new all time highs. For that to happen, bulls must push and close above the most recent resistance line at $18.55 as we said on our last projection. If not, then wait until a stochastic buy signal prints ideally at around $14 and $15.
Nothing much on the fundamental end this weekend but the good thing is that Litecoin is up 12 percent for the week. Going forward, I expect Litecoin prices to recover and keep up with the expansion we are seeing in other coins as EOS and Tron.
In our entry chart, there is a stochastic sell signal turning from deep the overbought territory meaning sellers might continue pressing prices down today. In that case and especially if sell pressure break below the middle BB then our potential support line should be at the 61.8 percent Fibonacci extension line anchoring on last week’s high low. That would be at around $160.
If at that level there is a simultaneous print out of a stochastic buy signal print out and bullish reversal patterns then the better for buyers.
XLMUSD (Stellar Lumens)
Following EOS in the losers list is Stellar Lumens. In fact Stellar Lumens is down eight percent for the week and this is understandable considering the slow correction and accumulation that has been happening for the better part of last week. From the chart, we remain bullish and searching for buy opportunities anywhere between 40 cents on the upper end and 36 cents on the lower end.
Two scenarios can happen here. Either Stellar Lumens prices shall reverse and add to that double bar reversal patter at 40 cents or bears break below it and edge towards 36 cents. In both cases, waiting for a shift of momentum is essential and as such, waiting till a stochastic buy signal prints before loading longs can be a good strategy. Either that or waiting for a bull break out above 50 cents in line with our last Stellar Lumens price forecast.
It’s a hallmark for Tron. Statistics shows that the Tron Network now has more than 1 million users and as the countdown to mainnet launch continues, you should be massing more coins in my view. Well, Tron is a long time buy especially if it lives up to its expectations.
As such, our previous trade recommendation still holds true now that we have that cool double bar reversal pattern forming right at 8 cents, our immediate support line. However, if Tron sellers increase their ramp and drive prices below our support line then trade with the trend. In that case, selling with targets at 6.5 cents and later 5 cents would be ideal.
Regardless of the last three day slide, IOTA is up 14 percent in the last seven days and if current news is our steer then buying IOTA on dips would all be but a good strategy.
The IOTA foundation continues to form important partnership with leading tech companies and the latest tech leader to join in the IoT bandwagon is Porsche. Together with IOTA they shall advance the project dubbed Program 4 project which seeks to improve smart mobility and a vision of a start up, Autobahn.
The @PorscheLab is looking forward to work together with @iotatoken & @Porsche on a @StartupAutobahn Project. #StartupAutobahn is the ultimate innovation platform that unites tech companies with the tech expertise of #SiliconValley & the best of German engineering. #Porsche #IOTA pic.twitter.com/xMU7BSuX8r
— IOTA News (@iotatokennews) May 5, 2018
From the chart, price action is correcting an over-valuation visible after May 4 close. There you see that whole bear candlestick closing above the upper BB and that’s not all, there is a sell signal. So, despite our upbeat view of prices, chances are IOTA might continue trickling down today with targets at $1.65 especially if there is a push below $2.15.
The post IOTA, Stellar Lumens, Tron, Litecoin, EOS: Technical Analysis for May 7, 2018 appeared first on NewsBTC.
Williams Martini Racing, one of the world’s leading Formula One teams, is known for its relentless innovation, and the motorsport team relies heavily on technology to gain an edge on its rivals. Now, the team has announced that it is looking at blockchain technology to help deliver a competitive advantage. Williams has won 16 FIA Formula
The post Leading Formula One Team Williams Martini Taps Blockchain to Gain Edge on Competition appeared first on CCN
Yoon Suk-heun, the new governor of South Korea’s Financial Supervisory Service (FSS), said that the country’s top financial regulator will consider easing cryptocurrency regulations. “Regarding cryptocurrencies, there are some positive aspects,” Yoon told reporters after President Moon Jae-in approved his nomination to lead the government agency. His nomination was submitted by the Financial Services Commission […]
The post S Korea: New FSS Governor To Ease Cryptocurrency Regulation appeared first on Coinjournal.
Bitcoin price has failed to secure momentum in the $10,000 region and has fallen by more than $400 over the past 24 hours, Alternative cryptocurrencies (altcoins) and tokens have followed the price trend of bitcoin, dropping in the range of 5 to 20 percent. Where Does Bitcoin go From Here Analysts were optimistic in regards
The post Bitcoin Price Fails to Test $10,000 Again, Alternative Cryptocurrencies Also Drop appeared first on CCN
In the current gradual climb in the price of bitcoin, a trader has exited a short position worth a blistering $119 million. As bitcoin slowly regains both respectability and value with almost genteel trading over the last few weeks, previous short positions are evaporating. Although the price rise has been gradual, it was enough for the holder of a massive short position to have to cash in.
A short position is a common trading ploy, and virtual coins and virtual exchanges are not exempt from the tactic. In essence, “shorting” involves betting on a price dipping and thus borrowing stock of whatever nature (in this case bitcoin) and replacing it later for cheaper, after that price tumble. The short position never has to outlay buying capital as the assets are borrowed, but can score handsomely when their replacement value dips by pocketing the difference.
The Risks of Short Selling
The margins and futures market is risky because there are other considerations to any short position. The owner may call the deal at any point, and in the worst case scenario, prices actually go up, not down, and the short position holder then is obliged to replace the borrowed goods at whatever current market value might be, even at a personal loss.
Source: BTCVIX Twitter
The OKEx exchange was launched by OKCoin and has maintained a clean bill of health, in spite of rumors that forced it to halt trading on occasion.
The top-listed short spot on OKEx has now bailed on any further HODL strategies and exited the position, possibly losing substantially.
Trader, in this case, would have lost $1.9 million if leverage was 100x or $19 million if leverage was 10x. In either case, that’s a lot of money to lose.
The second weightiest short position on OKEx was worth $73 million and has also closed with bitcoin now hovering around the $10,000 mark. In the far more volatile altcoin market, short positions become even riskier than they typically are in other markets. Shorting sees a trader borrow bitcoin at, say, $8,000 in the anticipation that it will still plummet to $4,000 in value.
The trader sells the bitcoin immediately at the prevailing price, even though it is borrowed, and waits for the price to plummet. Once the price has dipped substantially, from the proceeds of the original sale, the trader will buy and replace the borrowed bitcoin and declare a profit of whatever is left, as a difference between what they made selling borrowed goods and what they spent replacing them.
Will Hong Kong Rival Pamplona With a Bull Run?
In the example above, it’s easy to see that the short seller’s theory held and the value plummeted to $4,000, they would have made $4,000 when they sold at that predicted point. Conversely, had the market moved against short positions, and the price rose to anything from $8,001 and up, the short position trader would have immediately started losing.
With such massive figures, there has been speculation that some of the players in the deal were institutional. That remains unclear, but it has been noted that in spite of the weight of the two largest shorts, demand is rising and moving against the doomsayers. Managing to largely avoid extreme volatility and without much of the fanfare of 2017, bitcoin is rising in value. That the bitcoin price rode roughshod through the heavy shorts could be indicative of a bullish sentiment forming. The price of bitcoin is currently trading at $9,502.
The post Largest Ever Bitcoin Short Trade ($119 Million) Closes on OKEx appeared first on BTCMANAGER.
Make sure you check out last weeks post here, now let’s go over what happened in crypto this week. Price Watch: Bitcoin is up 5% again this week to $9,990. The price was all over the place this week dropping to $9,200 and losing support at that level before briefly dipping below the $9,000 level. The price made
The post Ethereum Sharding and Anonymity under Attack: This week in Crypto appeared first on CCN
Billionaire Warren Buffett, a notorious bitcoin bear, blasted cryptocurrencies again at the 2018 Berkshire Hathaway annual shareholder meeting on May 5. Buffett reiterated his earlier warning that “cryptocurrencies will come to bad endings,” the Wall Street Journal reported. “If you had bought gold at the time of Christ and you figure the compound rate on
The post Billionaire Warren Buffett Trashes Bitcoin Again: ‘It’s Rat Poison Squared’ appeared first on CCN
If mass adoption is the holy grail for cryptocurrency, then Verge’s recently announced arrangement with MindGeek is a major milestone on the way to the widespread use of digital, non-state issued currencies in our everyday lives.
Like a Vergean – XVG Takes a Bite of the Pornhub Cherry
Sure, the price of XVG plummeted by around 30 percent within hours of the April 17th announcement that the Verge team had inked a deal with MindGeek, the Luxembourg-based, Canada-operated company that owns a suite of adult websites including Pornhub, YouPorn, Redtube, Brazzers, Digital Playground, Men.com, Sean Cody, Reality Kings, and MyDirtyHobby – which bills itself as the adult social network.
Some among the VergeFam may have been disgusted by the relatively insalubrious nature of the corner of the internet in which Verge had hedged its bets. Some may have been disappointed the partnership was not with TokenPay, as was widely rumored. Others perhaps predicted it would toxify the currency for any other would-be retailers. And others still were simply plying the tried-and-true trade of buying the rumor and selling the news.
One Day We’ll Find It, the Pornhub Connection
Regardless of the ultimate fate of Verge itself, its Pornhub & Co tie-up speaks to the promised emergence of cryptocurrencies as a means of exchange in the wider community. Take-up of cryptocurrencies, with the primary exception of Japan, has been slow. Many jurisdictions are battling to define cryptocurrencies, let alone permit their use, whereas others, such as China, have outright banned them. Malta is the most actively welcoming jurisdiction for cryptocurrency enterprises such as trading platforms, with Binance’s plans to move to the Mediterranean archipelago evidence of both the warmth of the Maltese embrace and the gradual encroachment of mainland China on Hong Kong’s prized autonomy.
The U.S. market is enduring an ongoing struggle among authorities to formalize a unified position on digital, non-state issued currencies. The SEC deems tokens sold during ICOs to be securities. Yet once on exchanges, those tokens, when traded, are treated by the IRS as property, and taxable as capital gains. A number of states in the U.S. accept major cryptocurrencies like bitcoin to pay tax bills. But some don’t. Progressive Japanese-style adoption of cryptocurrencies and acceptance of their inevitability has proven elusive at the global level.
From Silk Road to Main Street… the Path to Legitimacy Is Paved by Criminals, Casinos, and Pornographers
A nominal glance at the history of the internet suggests that the adoption of new technologies capable of offering a degree of anonymity tends to follow a pattern of early adoption among marginal or downright illicit industries before heading toward mass adoption in mainstream society. Criminal syndicates, petty thieves, casino operators, and pornography producers were the first to take advantage of the internet’s potential to allow them to operate and reach customers (or victims) discretely and outside the purview of any single nation-state regime.
As Star Trek producer Rick Berman famously said:
“Without porn and Star Trek, there would be no Internet.”
Phillip Elmert-Dewitt’s 1995 Time Magazine cover story, “Cyberporn”, asserted that over 83 percent of the images on usenet (where the origins of internet surfing culture can be traced) were pornographic. Porn sites pioneered advertising and click-bait techniques that would become the envy of online shopping sites a decade later.
Shut down and seized by the FBI in 2013, Silk Road, the online black market that became popular for buying and selling narcotics and weapons anonymously, stands as