Ripple price corrected lower after trading as high as $0.3168 against the US dollar.The price traded below the $0.3100 level, but the $0.3070 level acted as a decent support.There was a break above a key bearish trend line with resistance at $0.3080 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair is likely to accelerate gains once bulls clear the $0.3120 resistance level in the near term.Ripple price remained well bids on the downside against the US Dollar and bitcoin. XRP/USD is climbing higher and it could accelerate once again towards the $0.3150 and $0.3165 levels.Ripple Price AnalysisThis past week, we saw a solid upward move above the $0.3100 resistance in ripple price against the US Dollar. The XRP/USD pair even broke the $0.3150 resistance and settled well above the 100 hourly simple moving average. The price traded as high as $0.3168 and later it started a downside correction. Sellers pushed the price below the $0.3120 and $0.3100 levels. However, the price found a strong support near the $0.3070 level and the 100 hourly simple moving average.A swing low was formed at $0.3070 and recently the price climbed higher once again. It broke the 23.6% Fib retracement level of the last decline from the $0.3168 high to $0.3070 low. Moreover, there was a break above a key bearish trend line with resistance at $0.3080 on the hourly chart of the XRP/USD pair. The pair is now trading nicely above the $0.3080 level and the 100 hourly SMA. On the upside, an immediate resistance is near the $0.3120 level.Besides, the 50% Fib retracement level of the last decline from the $0.3168 high to $0.3070 low is also near $0.3120. Therefore, the price might struggle to clear the $0.3120 resistance area. If bulls succeed in gaining strength above the $0.3120 resistance, the price could retest the $0.3150 resistance. Any further gains will most likely increase the chances of a move towards the $0.3200 barrier.Looking at the chart, ripple price is trading nicely above the $0.3070 support and the 100 hourly SMA. Should sellers clear the $0.3070 support, there could be a downside extension. The next key support is near the $0.3030 level, where buyers are likely to emerge. Therefore, the $0.3070 support holds the key for more gains above the $0.3100 and $0.3120 resistance levels in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD is gaining pace in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 50 level, with a positive bias.Major Support Levels – $0.3080, $0.3070 and $0.3030.Major Resistance Levels – $0.3100, $0.3120 and $0.3150.
Archives for March 2019
Canadian police have frozen assets owned by the founders of blockchain services company Vanbex, as part of a fraud investigation into a 2017 initial coin offering (ICO) that raised $22 million.
According to court documents dated March 13, the company, led by Kevin Hobbs and Lisa Cheng, raised $30 million CAD (about $22 million) worth of fiat and cryptocurrency through the sale of a token called FUEL.
Vanbex told investors that the token would be usable in a forthcoming smart contract system called Etherparty, and that “the value of the FUEL token would increase dramatically,” says the civil forfeiture action filed in the Supreme Court of British Columbia.
However, Vanbex “developed no usable products” and Hobbs and Cheng “did not intend to develop the products they were marketing but rather [acted] with [the] intention to misappropriate the corporately invested funds raised for their own personal benefit,” according to a filing by the director of civil forfeiture at Canada’s Ministry of Attorney General.
“FUEL tokens became virtually worthless in dollar value while not being capable of use in the non-existent smart contracts system or for any product or service other than a cryptocurrency coin creating service called Rocket,” which was different than what the purchasers were promised, the director claimed.
No criminal charges have been filed so far, and when reached by CoinDesk on Sunday evening, Cheng and Hobbs denied the fraud charges and said Vanbex is cooperating with the investigation.
But in response to the government’s application, Justice J.A. Power on March 14 authorized the government to seize the founders’ two Land Rovers; ordered Bank of Montreal to freeze Hobbs’ two accounts there containing slightly less than $1 million; and ordered him and Cheng not to sell, borrow against or damage their Vancouver condominium for at least 30 days, court papers show.
In a statement provided to CoinDesk, Hobbs and Cheng called the fraud allegations “false,” and said that the investigations were the result of “false claims by a former contractor.”
The Royal Canadian Mounted Police (RCMP) began investigating Vanbex and its founders for fraud in May 2018 and the Canadian Revenue Agency subsequently began a tax probe, according to the filing.
The founders denied that they made any promises about the value of FUEL tokens, saying “the tokens integrate bitcoin and Ethereum and the value of any currency is beyond any company or individual’s control, obviously. … Fuel tokens pay for transaction fees on the network for Smart Contracts deployed through our architecture.”
Vanbex’s business accounts have not been frozen, they added.
They took issue with the government’s characterization of Vanbex in court papers as a shell company. “Vanbex is an operating company, which is easy to establish,” they said, adding that they have been in the crypto space since 2013.
Further, Hobbs and Cheng took issue with the authorities’ claim that Vanbex produced no usable products. “We have had more than 50 clients” – not two, as the court documents allege – “and we have two excellent products.”
Still, the court papers go on to allege that Hobbs and Cheng “acquired sudden and substantial personal wealth” around the time of the ICO, purchasing two condominiums – the one in Vancouver, another in Toronto – for about $3 million each and the two Land Rovers, and leasing a Lamborghini for $375,000 a month.
Further, Hobbs spent some of the misappropriated funds on gambling “domestically and internationally at the high roller level,” according to one of the filings.
From September 2016 to March 2018, he withdrew a total of $1.3 million from casinos in British Columbia, one document alleges. In November 2017, the state-owned British Columbia Lottery Corporation put Hobbs on a “watch list,” preventing him from buying in at any of its casinos without proof of the source of his funds.
When Hobbs and Cheng became aware of the investigation, they started attempting to liquidate their assets, taking out mortgages against the condos and putting one of them up for sale, the document claims.
The court papers also note that Hobbs has a criminal record in Canada. He was convicted of possessing criminally obtained property and money laundering in 2008, for which was sentenced to nine months, and growing and trafficking in marijuana in 2009, for which he was sentenced to 30 months, the documents say.
In addition, he was busted for possession of pot in New York in 2005, for which he was given a one-year sentence, the Canadian government said.
Hobbs and Cheng told CoinDesk that he “has been a professional poker player in the past and has participated in poker tournaments around the world,” and “has never been prevented from [playing at] any casino.”
Employees have been “encouraged to cooperate fully with the investigation and they are,” Hobbs and Cheng told CoinDesk.
“We remain confident that the truth will prevail, and this will be behind us soon,” they said.
“Unfortunately, these things move at a pace beyond our control. In the meantime, we will continue to innovate and deliver quality products. Our counsel are working to put this astern in a fashion that decisively confirms our leading role in this industry, which we intend to maintain.”
They concluded by telling stakeholders:
“Thank you for your loyalty and trust. It is not misplaced.”
Lisa Cheng image via CoinDesk archives.
ETH price corrected lower recently and tested the $39 support area against the US Dollar.The price found a strong buying interest near $139 and it recently bounced back.There was a break above a declining channel with resistance at $141 on the hourly chart of ETH/USD (data feed via Kraken).The pair is currently trading above the $142 level and it may continue to rise towards the $145 resistance.Ethereum price stayed above important supports against the US Dollar and bitcoin. ETH is moving higher once again and it seems like bulls are eyeing a break above the $145 swing high.Ethereum Price AnalysisRecently, ETH price started a downside correction after testing the $145-146 resistance area against the US Dollar. The ETH/USD pair corrected below the $143 and $142 levels. The price even broke the $140 support level and tested the key $139 support area. Buyers emerged near the $139 support and the 100 hourly simple moving average. After a downside spike, the price started a fresh upward move and traded above the $140 resistance level.Later, there was a break above a declining channel with resistance at $141 on the hourly chart of ETH/USD. The pair spiked above the 50% Fib retracement level of the recent decline from the $145 swing high to $139 swing low. Ethereum price settled above the $142 level, but it faced hurdles near the $143 level. The 61.8% Fib retracement level of the recent decline from the $145 swing high to $139 swing low also acted as a resistance. At the moment, the price is currently consolidating gains above $142 and it may dip a few points.On the downside, the $142 and $141 support levels might prevent declines. On the upside, a clear break above the $143 resistance could push the price towards the $145 resistance area. Above $145, the next target for buyers could be near the $150 level. On the downside, if there is an increase in selling pressure, the price may revisit the $139 support and the 100 hourly SMA.Looking at the chart, Ethereum price is clearly holding key supports above the $139 level and the 100 hourly SMA. If bulls fail to defend the $139 support, the price may move into a bearish zone. The next key support is near the $137 level (the previous pivot level). Overall, as long as the price is above $139, it could continue to rise towards $145 and $150.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.Hourly RSI – The RSI for ETH/USD is currently moving higher towards the 70 level.Major Support Level – $139Major Resistance Level – $143
What challenges have you faced building projects within the blockchain industry?
Siegel understands the need for innovation and disruption within economies, and he can get more done in the UK and Europe than he can in the US. His frustration is that institutional legacy mindsets are holding society back at the precise point when we have the ability to leap forward. I can hear the frustration in his voice as we talk.
“Building projects in crypto and blockchain is a lot like building projects in the regular business world. One of the biggest challenges we have is finding top coders. Cryptographers are easy to come by these days, but top-tier coders remain scarce.”
How has the “Crypto Winter” has impacted project funding?
The Crypto Winter has pushed the global crypto market cap into the toilet. When questioned about the implications of this prolonged bear market, Siegel paused for a moment before sighing and responding flatly:
“This Crypto Winter is the death of an era. For about 18 months between January 2017 and August 2018, open-source projects—smart people with no other fundraising opportunities—could build infrastructure for a new century of progress, and now that window is closed, probably forever.
Siegel continued, laying the blame at the feet of the US Securities and Exchange Commission:
“The SEC is largely responsible for what has happened, and should be doing more to foster innovation, not starve it. They created a self-fulfilling prophecy: by expressing their concerns that this would be bad for investors, they made it very bad for investors. Unless the US can enact new legislation to promote blockchain and decentralization, the US will be left behind. Other countries are more than happy to accept digital nomads and refugees who want to bring the world into the 21st century.”
How is Pillar navigating this hostile regulatory environment?
Siegel explained that his team made the decision not to list on exchanges—a risky move with token holders. This same move, however, has helped keep regulators on their side. If the system doesn’t yet accept tokens, then 100 percent of exchange activity is speculation. Investors cannot speculate on something if there is no primary means of exchange.
The crypto economy seems weakened by the prolonged bear market, but with advice coming from all sides, the ecosystem may become stronger with time. ICOs as a source of fundraising are gone, but they may still be viable for helping launch systems that have already been developed and are operational.
All-in-all, Siegel’s outlook seems positive but retains the temper of experience. The ICO market may be gone, but some projects are moving forward. Only time will tell if the SEC flexes their regulatory might on infrastructure and open-source projects within the five-year statute of limitations.
“We’re finally hitting our stride. We’ve launched several new features in the past few weeks, we are getting strong attention from the Ethereum and open-source blockchain communities, and we are collaborating with more industry players. We’re starting to realize the dream of our ICO, so it’s very exciting. I think we’ll be one of the few ICO projects that becomes part of the blockchain ecosystem.”
VKontakte (also known as “VK”), which is Russia’s version of Facebook, is planning to issue its own cryptocurrency. The project is currently under development, but a final decision has not yet been made.
The social media firm wants to create a cryptocurrency that all its users can implement, according to Russian news website RNS.
VKontakte claims it has 97 million active monthly users.
VK Launched Money Transfer System In 2018
If VKontakte is successful in rolling out its own cryptocurrency, users will be able to earn crypto for sharing interesting posts and accumulating “likes.”
They can also use the digital currency to buy and sell goods to each other and to transfer funds using VK Pay. VK Pay is the cashless money transfer system that VKontakte launched in June 2018.
However, it’s unclear how VKontakte’s cryptocurrency would be received in Russia, which has a lukewarm attitude toward virtual currencies.
As CCN reported, Russian president Vladimir Putin is a bitcoin skeptic, although he has warmed up to crypto a bit.
— DigitalCashNews (@DigitalCashNews) February 28, 2019
Putin recently set a July 2019 deadline for crypto regulations to be established in Russia. However, it’s questionable whether these rules will be rolled out this year since this initiative was previously delayed.
Last year, Putin set a July 2018 deadline for the implementation of guidelines for bitcoin trading, initial coin offerings, blockchain, and crypto mining. But those regulations never materialized.
Duma Rep: Russia Won’t Adopt Crypto for 30 Years
Moreover, Elina Sidorenko of the State Duma says Russia will probably not adopt cryptocurrencies for at least the next 30 years.
Sidorenko is the chairwoman of an interdepartmental working group of the State Duma for managing the risks of cryptocurrency turnover.
“The Russian Federation — like any other country in the world — is simply not ready to combine its traditional financial system with cryptocurrencies.”
“And to say that this idea can be implemented in Russia for at least the next 30 years is unlikely.”
Scandal-Ridden Facebook Wants to Launch its Own Crypto
Facebook sent shock waves through the cryptocurrency industry when a report exposed its ambitious plans to create a proprietary stablecoin that will enable its 2 billion monthly users to transfer value to each other.
Because of the massive size of the global Facebook network, the social media monopoly could actually operate like a small, independent economy.
However, Facebook has been roiled by scandals amid revelations that it has been selling private user data for years — without users’ consent.
As a result, the U.S. Federal Trade Commission is considering slapping Facebook with a “record-setting” fine.
Given the uproar over accusations that Facebook has repeatedly violated user privacy, it’s unclear how willing its users are to entrust the platform with their financial data.
Facebook May Be Slapped with ‘Record-Setting’ FTC Fine for Data Breach Scandal https://t.co/CiPrhZHJ3U
— CCN.com (@CCNMarkets) January 18, 2019
Moreover, a former Harvard classmate of Mark Zuckerberg claims that Facebook has grossly inflated its user statistics and actually has 1 billion fake accounts.
So in addition to violating user privacy, the social media monopoly has committed mass fraud, according to his bombshell allegation.
“If, as we allege, Facebook is lying about its fake accounts, that means that it could be liable to its advertising customers for billions of dollars in ill-gotten gains — over and above what advertisers have already sued over.”
Facebook Has 1 Billion Fake Accounts, Mark Zuckerberg ‘Greatest Con Man in History’: Researcher https://t.co/3mqsNk4Ux7
— CCN.com (@CCNMarkets) January 24, 2019
After rapidly surging to above $4,200 before plummeting back below $4,100 on Saturday, Bitcoin (BTC) has been able to incur some upwards momentum that has allowed it to tepidly move above $4,100.It is important to note that Bitcoin’s strongest level of resistance exists at $4,200, but analysts are expressing cautious optimism regarding the current state of the cryptocurrency’s price.Bitcoin Breaks Above $4,100 After Yesterday’s Volatility At the time of writing, Bitcoin is trading up marginally at its current price of $4,105. Over the past couple of weeks, $4,100 has proven to be a level of resistance for BTC, and it is unclear if the crypto’s bulls will garner enough buying pressure to flip this price into a level of support going forward.Yesterday, Bitcoin experienced large volatility that entailed a sudden surge to $4,230 that was immediately proceeded by a drop to below $4,100. This price surge was strikingly similar to one seen in late-February, where BTC surged from $3,900 to $4,200 before spiraling downwards towards $3,700.These two price moves have made it clear that $4,200 is a strong level of resistance, and that Bitcoin will require a significant influx of buying pressure to propel its price above this level.Chonis Trading, a popular cryptocurrency analyst on Twitter, recently shared his thoughts on Bitcoin’s price action in a short video, noting that BTC faced resistance at its upper Bollinger Band, but still is technically in a bullish trend.“$BTC – quick update on #bitcoin daily chart… Current rejection off upper BB, with spinning top candle formed after finding support from previous range rejection area now turned support…RSI Stoch, MACD, still bullish trending with slowing momentum,” he explained.$BTC – quick update on #bitcoin daily chart-current rejection off upper BB, with spinning top candle formed after finding support from previous range rejection area now turned support
-RSI Stoch, MACD, still bullish trending with slowing momentum
Week Month Quarter close Sun. pic.twitter.com/eRLabyc1A0— Chonis Trading (Crypto Mentor) (@BigChonis) March 30, 2019Bitcoin Struggles to Break Above Yearly Downwards Resistance LevelOver the past year, Bitcoin has been caught below a downwards resistance level which has continued to put bearish pressure on BTC’s price.The Cryptomist, a popular cryptocurrency trader on Twitter, discussed this resistance level in a recent tweet, noting that she expects the crypto to face one more downwards break before it garners enough buying pressure to break above this resistance level.“$BTC Weekly resistance right on the money! The daily candle is being rejected by the downtrend resistance that has held us in for a year… Double top on RSI suggest we may not break right now… My gut feeling – need 1 more leg down before break… When we do break, long green candle,” she explained.$BTCWeekly resistance right on the money!
The daily candle is being rejected by the downtrend resistance that has held us in for a year
Double top on RSI suggest we may not break right now
My gut feeling – need 1 more leg down before break
When we do break, long green candle! pic.twitter.com/VBaGN4saOZ— The Cryptomist (@TheCryptomist) March 30, 2019As the new week begins, it is likely that traders and analysts alike will discover whether or not $4,100 will be established as a fresh support level, and whether Bitcoin will continue to struggle to break above $4,200.Featured image from Shutterstock.
Binance Coin (BNB) has led the top ten cryptocurrencies in terms of quarter performance.The Binance crypto exchange’s native asset surged 185 percent in the first quarter of 2019, jumping from $6.069 to $17.335, according to data provided by Messari. On the whole, BNB was the sixth largest gainer in the said period, beaten only by PCHAIN’s PI (+787%), Ravencoin’s RVN (+337%), Everex’s EVX (+313%), Enjin Coin’s ENJ (+287%), and Numeraire’s NMR (234%). None of these cryptocurrencies were in the top ten list.BNB Q1 2019 Performance | Source: MessariThe three-month long bullish performance followed a considerable debacle last year, which saw BNB’s market capitalization dropping by over 75-percent from its historic high. Part of the collapse was due to crypto market’s overvaluation, which saw some major bearish corrections throughout the top and tail coins. However, almost all the significant cryptocurrencies seemed to have established their bottom levels, which somewhat explains why BNB had an impressive fiscal quarter.Fundamentally StrongBinance Coin (BNB) remained one of the few coins that traders included in their crypto portfolio. What backed it through the rough waters, and eventually to a decent recovery, is reputation. Binance’s success as a cryptocurrency spot exchange helped BNB attaining more legitimacy as a well-backed token. Binance ventured into other business territories that hinted more demand for BNB tokens in real-time, which included a decentralized exchange and token launchpad for blockchain projects.Looks like continuation to me.$BNB pic.twitter.com/2P8dJ3FHbJ— The Crypto Dog📈 (@TheCryptoDog) March 31, 2019While on one hand, Binance promised more demand for BNB, on the other it kept reducing the token’s supply rate.In retrospect, Binance spends 20-percent of its profits every quarter to buyback BNB tokens for destruction. That systematically reduces the supply rate of BNB tokens, leading investors to remain bullish based on the classic more-demand-less-supply scenario.What’s Next for BNB?Technically, the BNB price is now close to testing a crucial resistance area. Have a look:BNB Price Technical Analysis | Source: TradingView.comThe area near $353 has historically capped the BNB upside action from maturing any further. The price is once again testing the same level, supported by a moderate trading volume on the daily chart. If the BNB/USD rate manages to break through $353, then it could allow the pair to extend its bullish momentum further towards $400, a psychological resistance level.If BNB/USD fails to spark a breakout action, then the pair could see a sharp pullback towards the 50-day exponential moving average. This MA has lately provided support to the ongoing BNB uptrend.The Relative Strength Index, which indicates the asset’s momentum, is close to entering the overbought area, which means the ongoing uptrend might exhaust for a short time. There is momentum support at 96.82 that could allow BNB to bounce back and continue its uptrend as before.
According to one Cornell professor proficient in computer science and an advocate for Bitcoin, Emin Gun Sirer, crypto will be unable to surmount a $1 trillion collective valuation until certain requirements are met. He believes that with industry developments, “crypto winter will end” — eventually.Crypto Needs Scaling, Real Use-Cases, Decentralized SolutionsSirer recently wrote on Twitter that the cryptocurrency market surpassed $700 billion with “inherently unscalable technologies,” referring to 2017’s seemingly hype-based rally. While some were sure that $1 trillion was in crypto’s sights then, the market obviously pulled back drastically.Crypto winter will end.We reached $700B with inherently unscalable technologies.We will surpass $1T when we figure out how to scale, how to build non-custodial solutions, how to layer apps that people want to use and that bring net positive outcomes to society.— Emin Gün Sirer (@el33th4xor) March 28, 2019However, Sirer is under the belief that with scaling solutions, potentially like the Lightning Network or Ethereum’s Proof of Stake; a surge in non-custodial solutions, thereby mitigating the risk of hacks (just look at DragonEx & Bithumb); viable use cases that bring “net positive outcomes to society,” this market could finally begin to rally again.Related Reading: EOS Scaling Issues and Their Impact on the BlockchainBitcoin To Surpass $1 Trillion With Halving AloneWhile Sirer is making a case that the cryptocurrency market needs technical development to surpass the $1 trillion milestone, a number of pundits have recently claimed that this may not be the case.PlanB, an industry researcher, recently claimed that 2020’s block reward reduction could be the sole catalyst that hoists BTC above $50,000 apiece. As reported by NewsBTC previously, the analyst noted that if Bitcoin follows a linear trend that relates the stock-to-flow ratio (SF) to asset valuation, the mentioned auspicious event will allow the aggregate value of all BTC to reach $1 trillion.While $55,000 for each BTC seems irrational for most, PlanB writes that money from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will eventually flood into this space. This in and of itself may seem like a pipe dream, but some are sure this is likely, especially with the increase in hyperinflation, fiscal mismanagement, and speculators looking for alternative investment opportunities.Although many are sure that the halving event will create waves, Messari’s Ryan Selkis recently drew attention to another catalyst that could be responsible for creating a $1 trillion Bitcoin. The chief executive of Messari explained that with millennials inheriting billions from their to-be-deceased parents over the coming decades, much of that money could theoretically find itself in the crypto market, pushing up prices as a result.Featured Image from Shutterstock
The week is ending on a hugely positive note for the Tezos cryptocurrency.
Tezos Races Ahead of Wider Crypto Market
The blockchain project’s native asset XTZ today established a new weekly high towards $1.08 – up more than 17 percent in the last 24 hours. The latest push also brought the coin’s weekly gains to 57 percent, bringing the price a few steps closer to its November 19 high at $1.09.
No other top-20 cryptocurrency came close to matching the breakneck Tezos rally.
Volume-wise, crypto exchanges listing XTZ-enabled pairs reported trading activity worth a little above $8.2 million. Among those were Gate.io, a China-based cryptocurrency exchange, that posted 27 percent of the total XTZ daily volume. Aside from that major slice, Tezos trading appeared well-distributed.
Interestingly, Tezos attracted considerable volume from fiat markets. On Kraken, a regulated US exchange with international markets, the euro contributed 9.23 percent of the coin’s total daily volume. At the same time – and on the same trading platform – USD accounted for $477,000, according to a 24-hour adjusted timeframe.
XTZ Rally: Fake or Genuine?
Genuine, no doubts about that.
On March 29, San Francisco-based Coinbase announced that it would allow its clients to stake their XTZ holdings and earn attractive annual returns. The new service – offered via Coinbase Custody – would enable investors to participate in the running of the Tezos blockchain by staking their holdings and validating blocks.
What reportedly made the Coinbase staking service attractive is fund security. The firm confirmed that it would keep all the staked XTZ tokens in fully-insured cold storage. Moreover, Coinbase will issue necessary bonds to Tezos validators out of its pocket. The move would ensure 100% security to clients’ funds.
$ETH played a lead role in the last bull run (retail ICO craze). $XTZ and Coinbase’s custody staking will excite retail in the same way. Casual investors will buy for the 5-8% returns. They’ll be shocked when they start seeing $XTZ go 5x, 10x, 20x.
Fuel for the next bull run.
— Godfather (@GodfatherCrypto) March 29, 2019
That explains why speculators in the Tezos spot markets are preparing their upside positions. They expect big investors to purchase XTZ tokens to stake via Coinbase Custody, thereby fueling the coin’s demand against its limited supply.
That’s theoretically bullish, but time will test whether those speculations are correct.
There’s no question that the crypto industry has been growing by leaps and bounds over the past year, regardless of persisting bear trend that has sent overall market sentiment towards rock bottom.One indication of this growth has been the large and growing trend of social media giants entering the industry, and because social media companies operate on the forefront of the general public, their quickness to adopt crypto may signal a bigger trend of growing mainstream adoption.Report: Russian Social Media Giant VKontakte (VK) Developing Own CryptoAccording to a recent report from Russian news outlet RNS, VKontakte (VK) – which is the most popular social media platform in Russia – is in the process of developing their own cryptocurrency, which will be placed directly before all of the site’s nearly 100 million active monthly users.According to an unnamed source familiar with the company’s plans, the final decision on whether or not to launch the crypto has not yet been made, but if they do move forward with their plans, the current configuration of the project entails having a crypto account created for each individual user’s account on the site.“According to [the unnamed source], the current configuration of the project involves the creation of individual accounts for the accumulation of cryptocurrency to all users of the social network,” the report explains.The addition of the new crypto will also add a host of new features to the platform that allows users to easily monetize content, as users will be able to receive the crypto for publishing interesting content, and for receiving likes, comments, and reposts.It is important to note that VK has not yet confirmed or denied the rumors regarding this new crypto product.Growing Trend of Social Media Companies Turning to Crypto VK certainly isn’t the first social media company to turn towards crypto in order to enhance user’s experiences, and their decision to possibly release a cryptocurrency comes on the heels of news regarding US-based social media giant, Facebook, working to develop its own cryptocurrency.The Facebook crypto will be a coin associated with WhatsApp, which would allow users to facilitate nearly instant transfers between users, but information regarding this project is scarce.Other major companies, including Telegram and Signal, have also forayed into the crypto industry, with Telegram making headlines throughout the past year regarding the messaging platform’s highly coveted and publicized Initial Coin Offering (ICO).Because the success of social media is based entirely off of user experience, it is clear that the respective companies believe that the public is ready to begin heavily interacting with cryptocurrencies, which may signal that widespread adoption is right around the corner.Featured image from Shutterstock.