SEC’s allegation against Kik is gross mischaracterization and misleading of the facts, says Ted Livingston

Recently, Ted Livingston, the CEO of a Canadian-based messaging startup, Kik, spoke about the reason they were being sued by the United States Securities and Exchanges Commission, in an interview for CNBC Crypto Trader. Livingston also spoke about the famous Howey Test and explained why it would not hold in this case.
Livingston was asked about the exact reason the commission was after Kik: whether it was for raising money via an ICO or for having “an instrument in circulation” that does not comply with the commission’s requirements. To this, the CEO stated that in the Wells notice, which they had received in November, the commission’s emphasis was on both the Kin tokens that were sold during the ICO, its current usage and tokens issued by Kin Foundation.
He went on to state,
“they don’t talk about anything to do with Kin being used to or anything to do with Kin foundation. It’s purely about the token sale in 2017. So, to me that’s exciting, they’ve backed down the idea that Kin, today, being used in dozens of apps by millions of people is a security, they made no comment on that today […]”
This was followed by Livingston speaking about another key factor pointed out by the commission, the firm telling investors that they could expect profits and its appliance to the Howey Test. He stated that this was not “what the Howey Test is”, adding that because an asset could become more valuable does not imply that it was a security.
[…] Just because a group of people have a common incentive, does not make it a security. The Howey test makes it very clear from the 1940s. So to us, the announcement is quite clear and that’s why we got excited when the DAO report came out, saying that the Howey test was the correct test […]
Further, he spoke about the commission’s allegation that the firm “enticed people to purchase a token” by asserting that it was a good investment and that it would grow in value.”
“I think this is a gross mischaracterisation and misleading of the facts. What we did is that we explained basic crypto-economics. The fundamentals of crypto is that you can issue a digital asset that has guaranteed scarcity.”
He went on to state that it was economics 101 that an asset that is scarce, and that which creates demand would become more valuable. He added that the team did not “promise anything”, adding that they could neither guarantee the value of Kin nor guarantee the demand of Kin.
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Source: AMB Crypto

SEC continues to divide and conquer the whole industry, says Kik CEO Ted Livingston

Recently, Ted Livingston, the CEO of Kik, a Canadian-based messaging startup, shed light on the on-going case with the United States Securities and Exchanges Commission [SEC], in an interview with Ran NeuNer for CNBC Crypto Trader.
The discussion on the topic began by Livingston speaking about the first time the team was contacted by the United States regulatory authority. He stated that they first heard from the commission 3 days after the completion of their token sale, which was held over 18 months ago. He further stated that the initial interaction was a ‘friendly’ one, with the commission wanting to know more about what they were doing. He went on to state,
“Then, there were subpoenas and then testimony and finally they issued us what’s called the Wells notice, November last year. We issued our Wells response. We took both those things public in January and then finally we recently said what’s enough is enough, let’s go public. Let’s go to court.”
This was followed by the CEO speaking about whether they were expecting to be sued by the SEC. On this, Livingston stated that that they “weren’t sure”, adding that the one matter they were clear about was that the crypto-industry needed more regulatory clarity “one way or the other”.
He stated,
“we said to the SEC, ‘you’ve let us know that there’s infraction here. We’re going to tell the world that.’ So, one way or the other, you’re going to give us clarity here. Either you chose to go ahead or we’re going to fight this out in court and you back down and that in itself will be guidance.”
Further, Livingston was asked about their decision to go up against the commission. He stated that the commission originally had good intentions. However, he added that they have learned that the commission “continue[s] to divide and conquer the whole industry”, adding that everyone was “in this state of fear of what the SEC [would] think”.
He further stated
 “And at this point, this is having a real impact on our ability to compete on a global stage.”
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Source: AMB Crypto

LocalBitcoins clamps down on services in Iran; official says compliance now a top priority

LocalBitcoins, one of the most popular peer-to-peer cryptocurrency exchanges in the world, was recently criticized by the community. Last month, it was bought to light that the platform had stopped providing services to customers based in Iran, following which, the exchange placed a ban on in-person cash trading. As a result, the platform is reportedly losing customers to other peer-to-peer platforms in the space.
Currently, LocalBitcoins’ website explicitly states that the platform is not available for services in Iran. Further, Iranian users who already had an account on the exchange before the enforcement of the ban would be able to withdraw their Bitcoins. However, they would not be able to trade.
Source: LocalBitcoins
During an interview on Unchained Podcast, LocalBitcoin’s Community Manager, Vera Xavier and Chief Customer Success Officer, Elena Tonoyan, spoke about the reasons behind the platform’s latest update.
The platform’s representative stated that the reason for banning Iranian customers on its platform was regulations. The official stated that the cryptocurrency market was “getting regulated,” adding that there was a lot of grey area. She further stated that compliance was one of the platform’s top priorities now.
The official added,
“[….] Well, obviously right now, there are quite many regulations coming […] even though we’re a company acting under Finnish law, we have users from all over the world and sometimes for some regulatory reasons we might stop servicing in certain countries […]”
This was followed by the representative stating that she would not be able to provide further comments on the subject as it was beyond her “scope of responsibilities.” However, she did affirm that the main point was that the platform was doing its best to cooperate with regulatory authorities all around the world.

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Source: AMB Crypto

Binance Security Breach: Andreas Antonopoulos explains process, implications if exchange had pursued chain re-org

Andreas Antonopoulos, author of Mastering Bitcoin and a well-known Bitcoin advocate, spoke about the Binance hack and the re-org that was briefly considered, during a Q&A session on YouTube. During the session, the author explained the scenario of what would have happened if Binance had decided to go ahead with the re-org.
Binance, one of the largest cryptocurrency exchanges in the world, fell victim to a security breach that led to the loss of 7000 BTC. Soon after the hack was announced, Changpeng Zhao, CEO of the exchange, discussed the possibility of a chain re-org. This however, was criticized by a majority of the members in the cryptocurrency community, with several well-known influencers standing against this move.
This was followed by Zhao stating that the exchange had decided not to go ahead with the plan, after discussions with a few prominent players in the community. The reason behind the backtracking was that the cons weighed more than the pros.
Antonopoulos explained an outcome where Binance had decided to go the other way around, and do a chain re-org. The author claimed that the exchange was basically proposing a 51 percent attack. He added that the exchange would’ve had to persuade 51 percent or more miners to roll back to the block before the attacker sent the coins to his/her address, and set that block as the parent of the next block and start mining from thereon.
This was followed by the author speaking about a scenario where the exchange decided to do a re-org, a day after the attack. This would require the exchange to persuade miners to roll back around 145 blocks, following which, they would use their hashing power to surpass the remaining 49 percent of the miners who would’ve have been mining from the current block of the longest chains, thereby causing a re-org of the chain.
He went on to explain the majority of the miners’ work during this process,
[…] they would deliberately mine a double spend transaction from Binance, spending all of the outputs that were stolen by the attacker to Binance addresses and once that’s in there then the transaction from the attacker would not succeed those coins will have already been spent on the chain being mined by the miners trying to do the rollback […]”
Further, Antonopoulos stated that 51 percent was not enough, adding that one of the reasons it was not enough was that “at a rate of 1 percent advantage over the chain being mined by the 49 percent, they [rest 51 percent] would only achieve a 1 block gain every day.”
He stressed that miners with 51 percent hash rate would have only a 1 percent advantage over the chain being mined by the rest of the miners. The author added that under such circumstances, it would take the miners almost 150 days to catch up, overtake and rewrite the chain, remarking that it was a “very very long time.” Antonopoulos also stated that if something went wrong during this timeframe, like 1 percent of miners abandoning this process and shifting to the other side, then all the energy spent on this would’ve been wasted.
The author also spoke about one of the possibilities suggested to Binance, in order to get the miners on-board with the plan, which was to bribe them. He went on to state,
[…] one way to bribe them is to make sure that the transaction that they introduce, which spends Binance’s outputs back to Binance, carries very very high fees and therefore the miners are incentive, they’re gonna get paid off for this and those these would have to be more than the rewards of the blocks that the miners would be rolling back […]”
Antonopoulos added that if miners rolled back five blocks, then they have to pay the miners more than 60 Bitcoins. He explained that the reason for this was that miners would’ve made 12 and a half Bitcoins for continuing to mine the blocks on the normal chain, and if they had to roll back the chain, then that energy would be wasted. He further stated that Binance would’ve had to bribe the miners with the entire reward amount and add more to this as this would’ve been a risky undertaking.

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Source: AMB Crypto

Ethereum’s Vitalik Buterin says, ‘Bitcoin SV is a complete scam; Binance has a lot of power’

Recently, Vitalik Buterin, the creator of Ethereum [ETH], the leading smart contract platform and the second largest cryptocurrency, spoke about Bitcoin SV and the famous episode of the coin being delisted from Binance. Buterin also elucidated about his opinion on centralized exchanges, in an interview for The Great Ave podcast.
The creator, who previously stated that “BSV is a pure dumpster fire“, remarked that the Craig Wright backed digital currency was “obviously a complete scam”, adding the coin being delisted from one of the biggest exchange was “interesting”. He further pointed out that there were arguments that were in favor of the step taken by Binance and also the other way around, where the argument was that it was an exchange “wielding a lot of centralized power.”
This was followed by Buterin stating that Binance, in reality, does have “a lot of power” and that it was “wielding it in a lot of ways”. Under this, Vitalik highlighted the points of the exchange asking for “big listing fees” and its influence over tokens, where the exchange “influences which coins win and lose” by choosing its trading pairs.
Buterin went on to state,
“it’s weird to kind of criticize like that one decision without looking at all their others […] the more long-term thing is, […] I do really want to decentralize exchanges to succeed and at least kind of offer enough of a level of service that coins tokens can exist and do well like even regardless of what centralized exchanges do”
In October 2018, Binance released an official statement on its blog post, declaring that all its listing fee would be donated to its charity initiative, Blockchain Charity Foundation. Additionally, the exchange had stated that it would donate 100 percent of listing fee and also make the process transparent. This move was made by the leading exchange in order to “increase the use of blockchain for greater good”. The exchange had stated,
“Project teams will still propose the number they would like to provide for a ‘listing fee’, or now more appropriately called a ‘donation’. Binance will not dictate a number, nor is there a minimum required listing fee”

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Source: AMB Crypto

SEC strikes down Kik Interactive days after Kin Foundation announced Defend Crypto initiative

Right when everything seemed to be going well between the United States Securities and Exchanges Commission [SEC] and the cryptocurrency space, the SEC released a press statement on charging Kik Interactive Inc. for issuing a token, Kin, without registering it as a securities offering. The SEC also pointed out that the $100 million securities offering took place six weeks after the commission released The DAO report, advising issuers to comply with the securities law.
Robert A. Chen, the Chief of the Enforcement Division’s Cyber Unit remarked,
“Kik told investors they could expect profits from its effort to create a digital ecosystem. Future profits based on the efforts of others is a hallmark of a securities offering that must comply with the federal securities laws.”
The press release briefly explained all the stance taken by the commission to sue Kik Interactive. The commission “alleges” that Kik was incurring a loss for years on its messaging app, with the firm’s management “predict[ing] internally that it would run out of money in 2017.” Following this, the firm raised money via the sale of one trillion Kin tokens, $100 million in cash and Ethereum out which, $55 million was raised from U.S investors.
The press release stated,
“The complaint alleges that Kin tokens traded recently at about half of the value that public investors paid in the offering. The complaint further alleges that Kik marketed the Kin tokens as an investment opportunity.”
This was followed by the commission stating that Kik “allegedly told investors” that the value of the token would increase with the demand while promising to do the groundwork to ensure an increase in its demand. This includes integrating the token on the messaging app, paving the way for transaction service and introducing a reward system that would incentivize companies adopting the token.
The commission also “alleges” that the firm did not have these services when it offered the sale of these tokens to investors, adding that “there was nothing to purchase using Kin”. Other allegations include enlisting the coin on exchanges/ secondary markets for trading purpose, and “Kik would profit alongside investors from the increased demand that it would foster.”  More so, the commission also highlighted that the value of the token has seen a significant decrease in comparison to its value during the token sale.
Steven Peikin, the co-director of the SEC’s Division of Enforcement stated,
“By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of information to which they were legally entitled, and prevented investors from making informed investment decisions. Companies do not face a binary choice between innovation and compliance with the federal securities laws.”
Stephen D Palley, a well-known lawyer in the cryptocurrency space stated,
“SEC v. KIK: One of the challenges inherent in defending an SEC investigations is that they give the commission the ability to do significant discovery before filing a lawsuit, as this one shows. If you poke the bear better have bear proof arguments to muster in response.
Interestingly, this announcement from the commission comes in days after Kin Foundation announced the launch of Defend Crypto initiative, where the foundation raised around $5 million. The sole purpose of this initiative was to get better regulatory clarity from the SEC in terms of the classification of security tokens.
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Source: AMB Crypto

Bitcoin’s biggest advantage is its network effect, says Monero’s Riccardo Spagni

Bitcoin [BTC], the largest cryptocurrency by market cap, marked the first decade of decentralization this January 2019 by celebrating the 10th anniversary of its genesis block generation. Over the years, Bitcoin grabbed the attention of retail investors, institutional investors, regulating bodies and even powerful government bodies across the globe.
Speaking with Shannon Grinnell for ‘Speaking of Crypto’ podcast, Riccardo Spagni aka fluffypony listed the coin’s ten years of existence as one of its advantages, adding that in these ten years, the coin proved to be robust. Meanwhile, the core developer of Monero also stated that the coin’s biggest advantage was its network effect, which no other currency has been able to achieve.
He went on to state,
[…] you can’t beat that without also being around for 10 years […] it’s a little bit to late for anyone to try and beat that because anyone who trusts bitcoin right now, trust it because of its 10 years of history and anyone who trusts something new will not have 10 years of history that they can rely on […]
Spagni further stated that the digital gold has achieved a level of dominance, which according to him, would not be beaten. At the same time, fluffypony also asserted that Bitcoin would not be the only cryptocurrency in existence, adding that there would be other coins that would survive.
To prove this, Spagni used the analogy of cars, where most of the cars use either petrol or diesel, however, they are not the only kinds of cars in existence as there were electric cars and LPG. He stated that this does not imply that petrol or diesel was the only way to power a car, but that it was just the dominant one, at present. However, with Bitcoin, “the dominance will continue indefinitely”, he added.
Further, Spagni spoke about Ethereum, explaining one of his previous analogy about the leading smart contract platform. Spagni had previously remarked that Ethereum’s “boil the ocean strategy has accomplished nothing” on Twitter. Spagni stated that the ‘boil the ocean’ analogy was “more around Ethereum itself rather than things that are being built on top of Ethereum”. He went on to state that the strategy was that “it must be able to do everything”, wherein one can build ZCash on Ethereum or build Monero on Ethereum because “Ethereum can do anything.”
Spagni stated,
“[…] And what I’ve realized over time is that it’s true. Ethereum can do everything, but it can’t do all those individual things particularly well […]”
This was followed by Spagni stating that if Monero was to be built on Ethereum, then it would have a very limited utility, adding that there were aspects of Ethereum that would limit the ability of creating large ring signatures.
He further stated,
“[…] you learn to build on this thing that could do everything, then you end up with this […] watered down version of the focused thing. And everything becomes mediocre, performance becomes mediocre, the scaling become mediocre, everything becomes mediocre because it’s too de-focused and you can’t build everything on it […]
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Source: AMB Crypto

Swiss multi-national investment bank, USB introduces Fnality International with investment of $63.2 million

USB Group AG, a Swiss multi-national investment bank and financial services company, will be using its own digital currency for cross-border payment settlements. A report published by MarketWatch stated that a total of fourteen firms have developed a coin named, Utility Settlement Coin [USC], and among those firms includes leading banks of the United States, Europe, and Japan. The digital currency would be backed by “bank-owned currency held at the central bank.”
The project includes prominent industry players such as Barclays, Nasdaq, Bank of New York Mellon Corp., Canadian Imperial Bank of Commerce, Banco Santander, Lloyds Banking Group, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp., Credit Suisse Group AG, ING Groep NV, State Street Bank & Trust Co., Commerzbank AG, and KBC Group NV.
Notably, a total of $63.2 million has been invested in Fnality investment and it took the firm over four years for the development of the virtual currency. More so, the firm has been working with regulatory bodies of different countries in order to obtain the necessary regulatory documents.
The head of strategic investment at UBS, Hyder Jaffrey stated,
“You remove settlement risk, the counterparty risk, the market risk. All of those risks add up to cost and inefficiencies in the marketplace.”
The report stated,
“The USC token would function both as a payment device and messenger that carries all the information required to complete a trade, potentially cutting down on a transaction’s time and cost.
Interestingly, Brad Garlinghouse, the CEO of Ripple had spoken about this utility coin in a blog post on LinkedIn in August 2016. Garlinghouse had highlighted two major problems with a bank-issued digital currency, one among them being the coin backed by a “basket of currencies”. Garlinghouse had stated,
“Once backed by cash, it’s no longer an asset; it’s a liability. Trading liabilities then ultimately requires moving cash across borders, re-creating today’s system but adding more friction! We strongly believe banks need an independent digital asset to enable truly efficient settlement and we believe XRP is best positioned for that role.”
John Whelan, Head of Digital Investment Banking at Banco Santander, stated on Twitter,
“Stablecoin for wholesale purposes. After 3 years of R&D, Utility Settlement Coin becomes Fnality International.”
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Source: AMB Crypto

Monero’s [XMR] Riccardo Spagni: Facebook, JPMorgan Chase launching their own coins is really interesting

Riccardo Spagni, the lead maintainer of Monero [XMR], recently spoke about one of the most controversial centralized cryptocurrencies making a debut in the cryptocurrency market. In a conversation with Shannon Grinnell on Speaking of Crypto Podcast, Spagni remarked that the steps taken by JPMorgan and Facebook to launch their own digital coin were “really interesting”.
Spagni went on to explain that this step was interesting because it would reach millions, and probably even billions of people, particularly because of Facebook being one of the most popular social media platforms in the world. He added that these centralized entities would have to launch their own coins [JPM Coin and GlobalCoin] in a “highly regulated fashion.” Spagni also stated that through Facebook, people would eventually find their way to Bitcoin. He added,
“[…] what I’m hoping will happen is people will be exposed to cryptocurrencies through something like Facebook and then they will become interested in it and will want something that’s a little bit more, something that gives them more control and more freedom, and then they will start like Bitcoin.”
This was followed by Spagni speaking about the mass adoption of Bitcoin and other cryptocurrencies. Fluffypony stated that he had two perspectives on the subject; mass adoption was “definitely” within grasp, considering all the main factors contributing to the adoption of crypto. Bitcoin could go on to become a “reserve currency,” instead of achieving mass adoption, he added.
“I don’t know if I’m convinced that we will achieve mass adoption and instead we will achive something like Bitcoin being the global reserve currency, which is not the same thing as mass adoption.”
He further explained,
“Reserve currencies are super useful and become like the underlying currency for like most of the cross border economic transaction in the planet, but it’s not the same thing as being used by a bunch of human beings to buy coffee and pay for their cab fare.”
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Source: AMB Crypto

BitMEX reports WebSocket API latency because of spikes of traffic in trading engine during Bitcoin’s price move

Bitcoin [BTC], the largest cryptocurrency by market cap, saw a dramatic price action yesterday, with the coin breaking through an important milestone – $9000 mark, and also losing around $1000 in its value within a few hours. Taking into this sudden increase and massive decrease, it was reported that both longs and short approx. to $32 million was liquidated on BitMEX, one of the leading margin trading platform.
Notably, during the same timeframe, BitMEX experienced a WebSocket API latency, as reported by the exchange earlier today. The timeframe was reported to be 16:00 and 17:00 UTC on 30 May 2019, and the reason behind the “substantial lag” was stated to be “spikes of traffic” in the trading engine “during large market moves”, however, the exchange did not mention the exact time latency it experienced.
A blog post by Teamtreehouse described WebSocket as,
“WebSockets provide a persistent connection between a client and server that both parties can use to start sending data at any time”
This issue could have led to a lag in the actual price displayed on the website, thereby resulting in a possible disruption of trade among the customers. The exchange further stated that this problem would be solved in the coming few days as the team is planning to lower the overall latency of the WebSocket feed with its Testnet release this week, following which it would be released to the main platform.
The exchange stated,
“During this period some WebSocket connections also experienced dropped market data updates as memory limits on an internal messaging layer were hit, forcing reconnections.”
Cuban, a Twitter user said,
“This happens very regularly every day. Your horizontal scaling effort makes sense to address the overload but why on earth is your price feed constantly inconsistent? I hope the team realises why you are losing liquidity and market share to competitors.”
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Source: AMB Crypto

Tron [TRX] and DAI move forward in the e-commerce ecosystem as WSWC announces support

Tron [TRX], the twelfth largest cryptocurrency in the market, takes another step in terms of its adoption to an e-commerce platform, We Shop with Crypto [WSWC]. Notably, Tron was not the only cryptocurrency to be added to its payment list, DAI, a leading stablecoin, was also added on the platform.
We Shop with Crypto announced on Twitter,
“#DAI Stablecoin now accepted on (link: http://WeShopwithCrypto.com) WeShopwithCrypto.com Buy & sell everything with #DAI on the marketplace dedicated for #Cryptocurrency Users!
#TRON $TRX now accepted on (link: http://WeShopwithCrypto.com) WeShopwithCrypto.com Buy everything with #TRX on the marketplace dedicated for #Cryptocurrency Users!”
We Shop with Crypto is an e-commerce site that has over 200 products on sale and accepts only cryptocurrencies for payments. With the addition of these two cryptocurrencies, the platform now accepts around 35 cryptocurrencies for payments. The other notable cryptocurrencies accepted for payments includes Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], Ethereum Classic [ETC], Monero [XMR], Stellar [XLM], and NEM [XEM].
We Shop with Crypto stated on its website,
“We also offer a wide range of Seller Services and tools that help creative entrepreneurs start, manage and scale their businesses. Our mission is to re-imagine commerce in ways that build a more fulfilling and lasting world, and we’re committed to using the power of business to strengthen communities and empower people.”
Tron was also in the limelight recently because of news concerning the development of the BitTorrent ecosystem. Justin Sun, the CEO of Tron Foundation, unveiled BitTorrent’s new project BitTorrent File System, a protocol and network implementation “that provides a content-addressable, peer-to-peer mechanism for storing and sharing digital content in a decentralized file system.”
Sun stated on Twitter,
“#BTFS is a continuing step in our mission to create a decentralized internet that allows everyone to share in the wealth of web commerce.”
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Source: AMB Crypto

Ethereum [ETH] continues its way to the top as it crosses new milestones

The cryptocurrency market seems to be back on the track alongside the bull, since a majority of the coins have displayed upward trends this year. Many of these coins have recorded massive returns when compared to their 2018 lows, including leading altcoins such as Ethereum [ETH] and Litecoin [LTC].
Notably, Bitcoin [BTC], the largest cryptocurrency in the market, was the highlight of the cryptocurrency space after it smashed through the $9000 ceiling yesterday. This breach was however, short-lived as the coin almost immediately fell below this key-point, losing over $400 within minutes. This slump further continued until the coin reached a low of $7972 on Coinbase, losing nearly $1000 within a few hours.
Bitcoin was not the only cryptocurrency in this journey down south, as other major currencies also had to bear the brunt, with some losing their value by double digit percentages. Ethereum [ETH], the second largest cryptocurrency in the market, recorded a drop of over 10 percent in the last 24 hours, according to CoinMarketCap. The coin that reached a yearly high of $288.77, dropped to a low of $235.44 on the same day, 30 May 2019.
This aside, Ethereum continues to march forward in terms of on-chain transactions and active addresses. Binance Research pointed out on Twitter that active addresses on Ethereum were reaching a 10-month high, the market cap was nearly at its 8-month high and the daily on-chain transactions at a 12-month high.
Source: Binance Research
Source: Binance Research
Source: Binance Research
Sean Supplee, a Twitter user, stated,
“[…] The amount of work being done on Ethereum and the amount of LARGE cap dApps that continue to use ETH over other cryptos is huge.”
Additionally, a Redditor, Twigwam, highlighted that Ethereum’s network marked another milestone after its total daily gas used reached an all-time peak on 29 May 2019.
Source: Etherscan
ConscjousEntity_, a Reddit user, said,

“This just indicates that the network is running near capacity. Block times are fixed, and max gas per block is fixed, so there is a fixed limit on the amount of gas that can be used per day. Any increase in actual gas used per day just brings us closer to that limit.”

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Source: AMB Crypto

Cryptopia releases first liquidators’ report; exchange does not confirm date of completion yet

After being granted an extra ten days to release the first liquidators report by the New Zealand Court on 23 May 2019, Cryptopia, at last, released the report filed by Grant Thornton. The report also gave an insight into the background on the events that occurred over the past few months. Notably, the report also listed out the secured and unsecured creditors, with Coca Cola and Dell New Zealand Limited being listed under secured creditors, and 69 unsecured creditors with a claim of $2.439 million.
The Twitter announcement by the exchange stated,

Liquidators’ First Report on the State of Affairs of Cryptopia Limited (in Liquidation) is now available: https://t.co/h2fZvVBL1A #Cryptopia
— Cryptopia Exchange (@Cryptopia_NZ) May 31, 2019

The report stated that the exchange, which had over 2.2 million registered users around the globe, scaled its business towards the beginning of 2018 because of the massive surge in the price of Bitcoin and other cryptocurrencies. Due to this, the exchange had “entered into a number of long terms, high-cost contracts to provide the infrastructure” required for trading by its customers.
However, as the market slumped through-out 2018, the firm was also affected because of the significant drop in trade volume. This, in turn, resulted in the firm reducing “its expense in an attempt to minimize trading losses.” This was followed by the exchange falling victim to a security breach that resulted in a loss of over $16 million in cryptocurrencies, and the firm opening an investigation on the case alongside the New Zealand Police, which is still ongoing.
The report further stated,
“The company then decided to reopen the exchange for the trade of certain crypto-assets in March 2019 and continued to trade through the date of Liquidation. However, trade volumes were insufficient for the Company to meet its debts as they fell due and it was decided the appointment of liquidators was in the best interest […]”
More so, another court order dated 29 May 2019 has allowed the firm to convert the Bitcoins that were “held in the company wallet outside of known clients funds” to fiat in order to fund the liquidation process and protect customers’ cryptocurrency holdings.
Further, the report also revealed that the liquidators are yet to start the audit and the customer’s verification process. Additionally, the liquidators have also not gained access to the database that is required to re-fund the platform’s customers. The report stated,
“Until the user balance database is reconciled with the crypto-asset wallets operated by the company, we cannot confirm the value of Customer holding.”
Spencer ellis, a Twitter user said,
“TLDR; We haven’t done anything to give people their crypto back, but we are going to sell Cryptopias 344 BTC to cover the costs of the liquidation.”
Troy, another Twitter user stated,
“Well we can at least be thankful that management of funds has been taken out of @Cryptopia_NZ hands, who were clearly incompetent with managing funds + security”
The post Cryptopia releases first liquidators’ report; exchange does not confirm date of completion yet appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin breaks $9000 momentarily as it falls back almost immediately

Bitcoin [BTC], the largest cryptocurrency by market cap, has been on an upward trend for the past few months, with the coin having an astounding breakthrough with its major resistance points. One of the most awaited breach points was the $9000 mark as the majority of the community was prepared to celebrate the breach with their Vegeta meme.
Today, the community’s long-awaited moment was realized when Bitcoin finally smashed through the $900 mark, reaching a high of $9090 on Coinbase. This, in turn, had the community rejoicing the coin’s achievement, as several members in the community, including well-known influencers like Charlie Lee, greeted this new level by posting the Vegeta’s GIF once again after over a year.
Source: Trading View

It’s Over 9000?!?! $BTC pic.twitter.com/F3cpltnps4
— Nye (@MrMichaelNye) May 30, 2019

Source: Charlie Lee Twitter
This, however, lasted momentarily as the coin tumbled back to its $8000 zone almost immediately, crashing everyone’s hope along with it. The coin fell from a high of $9090 to a low of $8550 within an hour.
Source: Trading View
According to CoinMarketCap, at press time, the cryptocurrency was trading at an aggregated value of $8698.41 with a market cap of $154.23 billion. The trading volume of the cryptocurrency was $25.711 billion and the coin had dropped by over 2 percent in the past one hour. Notably, during the same timeframe, both short and long positions were liquidated on BitMEX, a leading margin trading platform around the globe.
Source: Big Rekts Twitter
Source: Big Rekts Twitter
According to a Reddit post by Coinsmash, around $32 million worth of Longs and shorts were liquidated on BitMEX, in the past few minutes.
Source: Reddit
The post Bitcoin breaks $9000 momentarily as it falls back almost immediately appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] breaches $9000 mark on Coinbase; takes another step towards $10000

Following the recent surge past the $8500 mark, Bitcoin [BTC], the largest cryptocurrency by market cap, has smashed through yet another milestone for the year. The digital gold has finally marched beyond the $9000 mark on Coinbase, taking another step closer to $10,000. The cryptocurrency achieved this milestone within 45 minutes.

According to CoinMarketCap, at press time, the cryptocurrency’s aggregated value was $9004.13 with a market cap of over $159 billion. The coin’s trading volume was recorded to be $25.343 billion and the coin gained over 16 percent over the past seven days. The coin’s dominance over the entire cryptocurrency market was recorded to be 55.5 percent.

Hey guys side note. Meme time! Been waiting months!
Bitcoin::: pic.twitter.com/lPG6CFc7FN
— LaughingMan Crypto #FreeAssange! (@CryptoLaughing) May 30, 2019

Dean Pierce, a Twitter user said,
“Yay! The 9k memes came and went so quickly last time that I feel like we didn’t really get to enjoy them.”
TradeHODLer, another Twitter user said,
“It’s just the beginning! #HODL“
Roush14, a Reddit user said,

“I honestly do not care if it crashes at this point. Bitcoin’s recovery has been so satisfying”

The post Bitcoin [BTC] breaches $9000 mark on Coinbase; takes another step towards $10000 appeared first on AMBCrypto.
Source: AMB Crypto