Nothing will Stop Bitcoin from Disrupting Gold – Tyler Winklevoss

With the ongoing Bitcoin bull market, many have speculated that the cryptocurrency will soon replace gold as a store of value. Co-Founder of Gemini exchange, Tyler Winklevoss says there is no reason why Bitcoin will not disrupt the gold market.
Source: Twitter
The Bitcoin-gold struggle
Gold has been the top store of value for centuries now. Until now, it has not met any real competition but Bitcoin is about to replace it. This is what many important persons in the cryptocurrency space believe. Keiser Report Host Max Keiser earlier this month in an interview with Kitco News said although Bitcoin is relatively new, it is coming up to a level of maturity that will threaten gold.
Also in a more recent interview with Wells Fargo’s Head of Real Asset Strategy John Laforge cautioned investors against getting too comfortable investing in gold as the price is not performing as expected. According to Laforge, cryptocurrency should not affect the gold price because they are quite new and he expected gold to appreciate despite the surge in Bitcoin price.
Gold, however, has been complacent despite the volatility that has hit the market and that is not characteristic of a good store of value, he added. Although he did mention other metals such as Polonium, crypto enthusiasts still count this as a potential advantage for Bitcoin.
Also Read: Roger Ver Strikes Back at “Dropgold” Proponents, Says Bitcoin is Digital Fool’s Gold
The Dropgold Campaign
Digital Currency Group (DCG) Founder Barry Silbert has been working aggressively on his Dropgold campaign to further the adoption of Bitcoin while reducing patronage for gold. Silbert’s campaign has been quite successful, currently airing on National TV in the United States. With this in place and the skepticism coming from a major gold-friendly company like Wells Fargo, Bitcoin might really have a chance at disrupting the gold industry in the near future.
The post Nothing will Stop Bitcoin from Disrupting Gold – Tyler Winklevoss appeared first on Coingape.
Source: CoinGape

Winklevoss’ Gemini teams up with Harbor to further investment using Gemini dollar [GUSD]

The Winklevoss twins’ Gemini is ramping up the investment avenues for its native stablecoin the Gemini dollar [GUSD] following its recent partnership Harbor, a platform that is pegged on tokenized securities offerings.
According to an official blogpost by Tyler Winklevoss, the co-founder and CEO of the digital assets platform, the partnership will further “novel use cases” which are “native to the world of blockchain.” This partnership could potentially push the use of GUSD in tokenized spheres. In the post, Tyler Winklevoss, added that this partnership would bring stability via the US dollar and private investment through Harbor’s distribution line.
The blog post stated:
“This combination has the potential to bring unprecedented access, liquidity, and capital formation to private investments and investors that was previously not possible before the technological breakthroughs of cryptocurrency.”
In the wake of the recent stablecoin dilemma, Gemini is looking to build its private investment base, as the USDT fallout continues. The cryptocurrency community is displeased with the top stablecoin as a recent statement from a member of the Tether general counsel suggested that the cryptocurrency is only 74 percent backed by the US dollar.
Last week, the New York Attorney General issued a statement indicating that the cryptocurrency exchange Bitfinex covered up nearly $850 million in undisclosed losses using their Tether reserves, sparking fear in the larger market and in the top stablecoin.
Embracing regulation rather than hiding away from it, the Winklevoss twins have been advocating necessary regulation, as a solution to the “trust problem,” within the cryptocurrency space.
The post Winklevoss’ Gemini teams up with Harbor to further investment using Gemini dollar [GUSD] appeared first on AMBCrypto.
Source: AMB Crypto

Mike Novogratz: Another BTC Value Surge is About to Happen

Mike Novogratz: Another BTC Value Surge is About to Happen
As Bitcoin (BTC) is clinging on to its $4,000 price tag, major crypto figures are betting big on a potential bull run. However, it doesn’t necessarily mean that cryptocurrency investors should get too carried away by the recent price uptick.
Mike Novogratz: Another BTC Value Surge is About to Happen

Continue reading at Coinspeaker
Source: CoinSpeaker

Gemini Exchange’s Cameron Winklevoss: Crypto-winter will lead to lasting innovations

Proponents of the cryptocurrency market never fail to make a splash in the cryptosphere, with many speaking about the future of the field, and the implications of existing technologies. In a recent blog post, Cameron Winklevoss, the Co-founder of the popular cryptocurrency exchange Gemini, spoke about the maturity of the market and the growing interest in cryptocurrencies, among people.
He stated,
“…The crypto market has matured significantly since then. Bitcoin’s value has gone from around $400 to $4,000 today. As crypto has grown up a lot, so has Gemini. We’ve grown from 25 to 200 employees and celebrated many achievements over the past three years, culminating with our recent mobile app launch.”
Winklevoss claimed that the brightest people were flocking towards the field of cryptocurrencies, with the aim to build on the decentralized, permissionless, and open system. He further said that previously, the industry was a “niche,” but it is now becoming something bigger and better.
In his words,
“Trust is the gap. Despite the enthusiasm, there remains much more work to be done to change the public perception of crypto. Recent events like the losses at QuadrigaCX have harmed a lot of people and caused reputational damage for our industry at large.”
The Gemini President added that the ongoing crypto winter will lead to lasting innovation, as the hype of late-2017 hid a lot of bad projects in the hype. Right now however, every single project needed match up to a certain standard. According to him, products built in today’s time would “shape what money looks like tomorrow.”
The Winklevoss brother were previously in the news after Tyler Winklevoss claimed that “every Bitcoin issue has never been a Bitcoin problem.” He touched upon the advantages that crypto and its technology possessed, and at the same time, debunked claims that Gemini was self-regulated. He said,
“The protocols have rules based on math and cryptography but the rule what we are taking about is the humans who deal with the value on top of the protocol. So, we are a trust company regulated as a trust company to protect your value and that’s usually where the cons happen, it’s not at the protocol level, it’s at the company level.”
The post Gemini Exchange’s Cameron Winklevoss: Crypto-winter will lead to lasting innovations appeared first on AMBCrypto.
Source: AMB Crypto

Access to Thousands of Institutions: Gemini Crypto Exchange Partners With British Telecom

Winklevoss brother’s crypto exchange Gemini has recently partnered with the financial and infotech services arm of British Telecom in a deal that will open the doors to thousands of exchanges, brokers and fintech institutions.
BT Cloud Broker Community Gets Crypto
In a press release the British multinational telecommunications company announced that New York based leading cryptocurrency exchange and custodian Gemini Trust LLC has joined the BT Radianz Cloud. The UK’s largest telecoms provider has operations in 180 countries globally and serves multinational organizations around the world with security, cloud and networking services via Radianz.

According to the release the move will provide Gemini access to one of the world’s largest, secure networked financial cloud communities with members spanning 50 countries. It continues to state that the network consists of thousands of brokers, institutions, exchanges and clearing and settlement houses. The partnership will provide community members access to the growing cryptocurrency market.
The collaboration will grant BT Radianz members access to Gemini’s trading and investment platform via a secure and professional environment, which is paramount for institutions. According to the BT Radianz website it has already made strategic partnerships with several industry giants including Microsoft, Cisco, Dell, Oracle, Symantec, and Amazon Web Services.
Chief information officer at Gemini, Nick Vigier, praised the move stating “This strengthens our institutional investor connectivity and helps us better scale our offerings in this space,”
The potential for new institutional clients through this collaboration is huge. BT already have decades of experience in the technology and communications sectors and Gemini will be bringing their crypto knowhow to the table. Michael Woodman, managing director of BT Radianz, added;
“Global financial institutions have very specific requirements about the performance, resilience and security of the infrastructure over which they trade. They expect stringent service levels and will only do business under trusted commercial frameworks that help them to meet their own contractual and compliance requirements. This can make it difficult for small or new service providers to grow. By joining the Radianz Cloud, Gemini achieves the reach and scale demanded by global institutions and benefits from an established framework for doing business with them.”
2019 The Year Institutions Enter Crypto
According to the CME profile page, BT Radianz partners consist of banks, corporates, intermediaries, hedge funds, asset managers, proprietary trading firms, and service providers. Radianz is a single, resilient and secure network engineered for the exacting demands of the international financial markets industry with over 400 providers of services crucial to today’s global fintech requirements. Cryptocurrency has now been added to that list.
Despite current market woes, 2019 has been slated by many as the year that institutions enter the crypto world. Partnerships such as this one are a sure sign that this is already starting to happen.
Image from Shutterstock
The post Access to Thousands of Institutions: Gemini Crypto Exchange Partners With British Telecom appeared first on NewsBTC.
Source: New

Winklevoss Twins: If Bitcoin ETF Approval Takes Six Years, So Be It

Among other things, 2018 was a tough year for Bitcoin exchange-traded funds (ETFs) applications. Regulatory entities overseeing such proposals quickly quashed the crypto industry’s dreams, denying applications left and right. Yet, the showrunners behind a denied ETF proposal, Cameron and Tyler Winklevoss, believe they have the chops to continue pushing for a green light, in spite of a handful of shortcomings.
Related Reading: Japan Explores Bitcoin ETF but Demand for Product is Mysterious
Gemini Founders: We Need To Get The Bitcoin ETF Right
The Winklevoss Twins, the co-founders behind the fittingly named Gemini Exchange, have recently embarked on a marketing campaign — taking to the streets of New York clad in branded merchandise, putting company logos on subway cars and taxis alike, and appearing on media outlets to talk crypto.
Most recently, after a revealing Ask Me Anything on Reddit, the two Olympians, who are also Harvard graduates, the two made their way to Fortune’s “The Ledger”, the outlet’s in-house column and show centered around blockchain and cryptocurrencies.
The duo, dubbed the Winklevii (Winklevoss + Gemini), noted that although its Bitcoin ETF venture, which purportedly began six years ago, has stalled, they remain committed. Twin Cameron explained that Gemini intends to see “it through,” even if a fully-fledged regulatory go-ahead takes another six years.
Gemini’s president added that he has acknowledged the U.S. Securities and Exchange Commission’s (SEC) objections over such an investment vehicle, touching on his firm’s recent implementation of Nasdaq’s SMART technology. Cameron added that Gemini’s leading involvement in the Virtual Commodity Association, which may improve market surveillance across the board, could also help to quell the SEC’s qualms.
The Winklevoss twin added that the SEC’s hesitance to accept such a vehicle is actually welcomed, explaining that since a Bitcoin ETF will be the first of many crypto-backed products, “we need to get it right.”
Interestingly, Cameron did note that the crypto spot markets and derivatives markets still need to grow, as financial regulators are still skeptical about the lack of liquidity in this nascent sector.
Crypto Commentators Skeptical 
While the Winklevii seems to be trying their utmost to garner regulatory approval, many pundits are skeptical that a BTC-based ETF is in the cards. Speaking to Ran NeuNer, Meltem Demirors, the chief of strategy at crypto asset manager CoinShares, recently explained that the proposal from VanEck, SolidX, and CBOE will “absolutely not” get approved.
Demirors then noted that a regulatory green light is unlikely to bless any other proposals, whether it be from Gemini, Coinbase, or otherwise. She explained that as it stands, the SEC would get no political, financial, or social tailwind from approving a Bitcoin ETF. Instead, Demirors noted that there is solely downside for the financial regulator, especially considering the tumultuous political climate that Americans face today.
The CoinShares C-suite member then explained that many forget that SEC and CFTC incumbents are appointed, and are mandated to stay in line with their party’s mandate. And, with there being nuances regarding America’s stance on fintech and how the nation’s economy should progress, the advent of a properly-backed crypto ETF is that much more quixotic. This has all only been accentuated by the ongoing government shutdown, slated to enter its fourth week on Monday.
In closing, to put a cherry on the proverbial cake, Demirors explained that from a fundamental viewpoint, approval is likely far off, as there remain underlying security and liquidity concerns about the underlying crypto market.
Arjun Balaji, a contributor to The Block, was also skeptical, but in a different, more optimistic manner. He explained that he expects for the VanEck crypto team to accomplish the impossible first, rather than Gemini or any other competitors. However, Balaji did note that there’s a good chance a single-asset (presumably Bitcoin) ETF gets approved sometime over the next 12 months.
In the same “The Ledger” interview, the Winklevoss Twins doubled-down on their optimism on Bitcoin, drawing attention to the asset’s foremost value proposition. The two preeminent industry insiders explained that Bitcoin is simply a better version of gold, but the precious metal just has a 3,000-year head start. Cameron, breaking down the “Bitcoin is a digital form of gold” argument, remarked that if you boil it down, Bitcoin is better at fungibility, scarcity, portability, and divisible than gold itself.
Featured Image from Shutterstock
The post Winklevoss Twins: If Bitcoin ETF Approval Takes Six Years, So Be It appeared first on NewsBTC.
Source: New

Bitcoin [BTC] is better at being gold than gold; will surpass the $7 trillion market cap, say Winklevoss twins

Tyler and Cameron Winklevoss conducted an AMA on Reddit on r/IAmA subreddit, where they spoke about a plethora of topics and mostly about Bitcoin and its future. The topic even included questions from users regarding Gemini’s fee structures.
A Reddit user, YRuafraid referred to Winklevoss’ AMA of 2014 when the brothers predicted that Bitcoin price would hit $40,000 per BTC. The user asked if the same was still true.
Winklevoss replied to this question:
“Our thesis around bitcoin’s upside remains unchanged. We believe bitcoin is better at being gold than gold. If we’re right, then over time the market cap of bitcoin will surpass the ~7 trillion dollar market cap of gold.”
The Reddit users quickly calculated that if this were to happen [assuming the circulating supply of BTC at 21 million] it would put the price of Bitcoin at $333,3333 per BTC.
A user, Noeel asked:
“Do you think Bitcoin will allways be Crypto #1?”
To the above, Winklevoss replied:
“Bitcoin is certainly the OG crypto! It’s hard to defeat network effects — so in terms of ‘hard money’ (i.e., store of value) Bitcoin is most likely the winner in the long term.”
The users moved from price predictions to a much more intense question regarding Gemini exchange. A user Vinyl_Steelworks asked:
“If you’re so committed to Bitcoin, why hasn’t your exchange implemented the latest Bitcoin technology yet? Things like implementing Segwit and transaction batching would not only benefit both your exchange and your customers but also the network as a whole.”
Winklevoss replied that their hot wallet was developed before SegWit was up and running and that trying to “retrofit” SegWit into existing wallets would be a tedious job. He continued that there was a new hot wallet in development which would support “SegWit”, “transaction batching”, “bech32 addresses”.
Winklevoss even added that there would more features available for the users which are still in the development stage. Moreover, Winklevoss confirmed that the SegWit implementation was already tested on Litecoin, Zcash, Bitcoin Cash. As for Bitcoin’s SegWit implementation, Winklevoss confirmed that it will be by Q1 of 2019.
The AMA took a serious turn when a user asked about their views on the future of crypto ETFs and Security Token Offerings [STOs]. The user RealOzSultan asked:
“What’s your short term plan to gain approval on Crypto ETFs and longer term where do you see STOs?”
Bitcoin ETF is one of the most discussed and awaited product that is yet to be launched or even approved by the authorities. Bakkt, which was supposed to launch the ETF on January 24, 2019, has postponed the launch date to an unspecified time in the future.
Winklevoss appreciate the question and replied:
“We understand the Commission’s concerns and are working hard to address them (i.e., increased marketplace surveillance) w/ the following steps:
1. Marketplace Conduct Rules – we implemented this to foster a rules-based marketplace.
2. Marketplace Surveillance – we have partnered with Nasdaq to implement Nasdaq’s SMARTS Market Surveillance technology to monitor the Gemini marketplace.
3. Market Surveillance Team – we have built an in-house team to monitor out marketplace for manipulative and deceptive practices.
4.Virtual Commodities Association – we are helping stand up an industry-sponsored self-regulatory organization for virtual commodity exchanges.
We are committed as ever to making an ETF a reality!”
Winklevoss twins have pushed the ETF twice for approval by the U.S.’ Securities and Exchange Commission [SEC], once in July 2018 and the other in March 2017.
The post Bitcoin [BTC] is better at being gold than gold; will surpass the $7 trillion market cap, say Winklevoss twins appeared first on AMBCrypto.
Source: AMB Crypto

Winklevoss Twins Believe Bitcoin Will Surpass Gold, Remain Leading Crypto

Save for Trace Mayer, Roger Ver, Jed McCaleb, Andreas Antonopoulos, and a mere handful of other early-stage Bitcoin (BTC) entrepreneurs, the Winklevoss Twins, Tyler and Cameron, are some of the most dedicated crypto believers out there.
Following a successful lawsuit against Facebook’s very own Mark Zuckerberg, the two pocketed dozens of millions. And eventually, after the two competed at Beijing’s Summer Olympics in 2008 and attended Oxford University for MBAs, they went on to allocate much of their settlement to the flagship crypto asset.
The Twins claimed that they purchased 1% of all BTC in 2013, a rumored 100,000 BTC. And, even while the two had ample time to liquidate their holdings well above their cost-basis, Tyler and Cameron have only doubled-down on this industry, time and time again. Their recent candid appearance on Reddit, the web’s most popular forum, only accentuated the duo’s unbridled optimism.
Gemini Founders’ Bitcoin Thesis Remains Unchanged
On Monday, Winklevoss Twins, the founders of the Gemini Exchange, took to Reddit’s “Ask Me Anything” subreddit for a candid question & answer discussion, which aimed to provide consumers with a look into the two’s business dealings, personal thoughts, and global outlook. Although the Twins garnered the attention of non-crypto fans, who know the two due to their involvement with the Olympics and Facebook, the so-called “AMA” session was focused around cryptocurrencies.
After some banter regarding “The Social Network,” a movie centered around the origins of Facebook, and the duo’s fastest erg (rowing) records, the Winklevii, as the two are often affectionately called, were asked about their thoughts on the market. Unsurprisingly, the Twins, who have evident vested interests in this nascent sector, explained that they remain bullish on Bitcoin’s value proposition.
Tyler explained that his and Cameron’s “thesis [on] Bitcoin’s upside remain unchanged,” even in spite of the bear market that ravaged cryptocurrencies and their respective communities throughout 2018. Their investment thesis, for those who missed the memo, is that Bitcoin is “better at being gold than gold itself” — a sentiment held by many long-standing cryptocurrency investors. So, Tyler noted that as this industry continues to develop, Bitcoin will continue eating up bits of gold’s market capitalization, until the cryptocurrency passes its physical counterpart.
Related Reading: Prominent CEO: Bitcoin Isn’t Digital Gold Yet, But $10,000 Is Still Possible
The Gemini founders aren’t alone in pushing this thought process. Messari CEO Ryan Selkis explained that Bitcoin is a great hedge in a traditional market “inflationary recession,” which he predicted is right around the corner. Selkis noted that investors will “flock” to stores of value, like a digital gold, in trying times. Just weeks later, Crypto Oracle founder Lou Kerner divulged that Bitcoin could breach $100,000, specifically due to its inherent characteristics of being scarce, relatively portable, decentralized, and censorship-resistant — a perfect digital store of value.
Cameron explained that the aforementioned features, which allow Bitcoin to be classified as “hard money,” will allow the digital asset to maintain its unquestioned hegemony in the cryptocurrency world for years to come. The Winklevii half noted that “Bitcoin [will] most likely [be] the winner in the long-term… it’s certainly the OG crypto!”
In spite of the duo’s opinion on Bitcoin’s de-facto classification as a digital gold, Cameron noted that Gemini is currently looking into working with the Lightning Network, which will allow BTC to be used as digital cash more seamlessly.
Crypto Revolution Will Succeed When Money Works Like Email
Although the Winklevii seemed bullish on Bitcoin only, the two explained that they’re optimistic on the crypto revolution at large. When queried about what would prove that the innovation of truly decentralized technologies was successful, Tyler noted that bonafide “success” is a future where the Internet is decentralized and open, compared to the paywall-rife, censorship-heavy, and bad actor-filled that is present today.
In terms of the monetary system, the Winklevoss twin noted that when “your money does things that your current money cannot do,” specifically drawing attention to email-esque money, that will be a clear indicator that this revolution actually pulled through. Explaining his nebulous “email” comment in-depth, the Gemini head noted that when the financial system is open 24 hours a day, seven days a week, and all 365 days of the year, all while facilitating instant, basically free micropayments, that’s when cryptocurrencies will have properly flourished. Tyler quipped:
“Imagine if your email worked like your money, that is to say it was available from 9-5pm Mon-Fri and it took sometimes up to 3-5 days for someone in another country to get your message?”
Featured Image from Shutterstock
The post Winklevoss Twins Believe Bitcoin Will Surpass Gold, Remain Leading Crypto appeared first on NewsBTC.
Source: New

Gemini Launches Mobile App, Says Crypto Is Here to Stay

The Winklevoss twins-owned Gemini crypto exchange is using the current bear market to “build,” and has launched its official mobile app for iOS and Android smartphones.
While a battle rages between Coinbase and Jack Dorsey’s Square Cash app for the top spot on the Apple App Store for iOS, a new contender has thrown their name in the ring. Gemini, the cryptocurrency trading platform led by Cameron and Tyler Winklevoss, has launched an official mobile app for iOS and Android devices.
Gemini Mobile App Now Available for iPhone and Android Devices
The new app offers many of the same experiences found when accessing Gemini from a web browser, including the ability to buy,  sell, send, and receive cryptocurrencies like Bitcoin and Litecoin, a portfolio to track gains and losses, the firm’s Buy the Cryptoverse bundle feature, and much more.
The app is now available for download on the Google Play Store for Android and Apple App Store for iPhone and iPad.
Related Reading | Square Cash Tops Apple App Store: Can Coinbase Reclaim Its Throne?
In an interview with Bloomberg, Gemini co-founders Cameron and Tyler Winklevoss explained their motivation for rolling out a mobile app now, while in the midst of a “crypto winter,” as many are calling the current bear market. Other companies such as rival exchange Coinbase, and even the $15 million-valued mining giant Bitmain have been struggling to maintain business operations in key areas.
“We’re totally at home in winter,” said Tyler Winklevoss. “It gives us time to build internally, and refine and kind of catch our breath,” added his brother Cameron.
Related Reading | Winklevoss Twins Launch Stable Coin to Compete With Tether
In addition to the mobile app launch, the Winklevoss twins have their sights set on expanding into Asian markets in 2019, and are continuing to push for an approval from the United States Securities and Exchange Commission to green light a Bitcoin ETF.
Winklevoss Twins Undeterred By Bear Market: Crypto Is “Here to Stay”
Despite the continued downtrend the overall cryptocurrency market is experiencing, and the continued resistance from the SEC to launch a Bitcoin ETF, the Winklevoss twins are undeterred in their approach.

“We’re in this for the long haul,” Tyler said. “We think it’s a space that’s here to stay.”

While many investors point to institutions – a demographic that Gemini currently caters to – as the catalyst to spark the next bull run, Cameron believes that the “retail story is just beginning.”
At the tail end of last year, retail investors flocked to the Coinbase app to buy Bitcoin, causing the price of cryptocurrencies to go parabolic. Gemini is hoping that their new mobile app will help lure in new retail investors.

Featured image from Shutterstock

The post Gemini Launches Mobile App, Says Crypto Is Here to Stay appeared first on NewsBTC.
Source: New

Bitcoin’s Biggest Congress Enthusiast Introduces a Pro-ICO and Crypto Legislation


Bitcoin’s Biggest Congress Enthusiast Introduces a Pro-ICO and Crypto Legislation

Warren Davidson, the biggest bitcoin enthusiast in Congress is set to introduce a new pro-ICO and crypto legislation. He believes that cryptocurrencies can thrive in a Federal-regulated environment.

Bitcoin’s Biggest Congress Enthusiast Introduces a Pro-ICO and Crypto Legislation

Continue reading at Coinspeaker
Source: CoinSpeaker

Charlie Shrem Wins His First Battle with Winklevoss Twins, Order to Freeze Assets Lifted


Charlie Shrem Wins His First Battle with Winklevoss Twins, Order to Freeze Assets Lifted

On hearing both sides of the story, the judge has recently given a decision to release Shrem’s assets while not disclosing the explanation behind it.

Charlie Shrem Wins His First Battle with Winklevoss Twins, Order to Freeze Assets Lifted

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin [BTC] millionaire sued by Winklevoss brothers over missing funds

Charlie Shrem, co-founder of Bitinstant, and an early Bitcoin millionaire is facing legal problems caused by the Winklevoss brothers, the founders of a leading cryptocurrency exchange, Gemini, according to a report by New York Times.
The history behind the lawsuit dates way back to the initial days of Bitcoin [BTC], when the cryptocurrency was trading just above $11. More so, Shrem is the reason the Winklevoss brothers stepped into the cryptocurrency space, as it reported that he helped spark the brothers’ interest in Bitcoin and was their first cryptocurrency adviser in 2012.
Shrem is also quite popular for being arrested over money laundering accusation. He was accused of knowingly helping people exchange their fiat to Bitcoin through his company, Bitinstant, one of the first Bitcoin exchange in the US. The twist here is that these people used the same Bitcoin to avail services on Silk Road, an online back marketplace which had services sold everything ranging from drugs to assassination contracts.
During his time as an advisor to the now Bitcoin billionaire brothers, Shrem was asked by the brothers to buy $750,000 worth Bitcoin on their behalf from investors. However, he failed to give all the Bitcoins to the brothers. This was then followed by the brothers giving their advisor $250,000 in September to buy more Bitcoins, wherein he again failed to deliver them the whole amount, transferring only $189,000 worth of Bitcoin.
This is when the Shrem faced his first legal problem caused by the Winklevoss brothers. According to the report, nearly 5000 Bitcoins were missing, and there was no accounting for the Bitcoins purchased by Shrem. This led to the brothers hiring an accountant, who then documented the missing Bitcoins. Post this, the brothers cut their ties with Shrem in 2014, the year of his arrest for his involvement with Silk Road.
Now, Shrem is living a life of luxury, with two Maseratis and power boats, and a $2 million house in Florida. This drew the attention of the Winklevoss brothers, who then hired an investigator to look for their missing Bitcoins. The investigator discovered 5000 BTC, which were sent to Xapa and Coinbase wallets through addresses connected to Shrem in 2013.
This has resulted in the brothers freezing the funds Shrem has in his companies as they got the permission by Jed S. Rakodd, a judge at the Federal District Court.
In an interview with The New York Times, Cameron Winklevoss said:
“When he purchased $4 million in real estate, two Maseratis, and two power boats, we decided it was time to get to the bottom of it.”
The post Bitcoin [BTC] millionaire sued by Winklevoss brothers over missing funds appeared first on AMBCrypto.
Source: AMB Crypto

Gemini Exchange Hopes to Appeal to Institutional Cash with Asset Insurance

The Gemini cryptocurrency exchange platform has managed to secure insurance for its customers’ cryptocurrency holdings.
The development should help the firm avoid the kind of hacks that have occurred against some of the industry’s other big names in recent years.
Gemini Ramps Up Security Measures for Crypto Custody
The news of Gemini’s new digital assets insurance was sent out via press release, as well as announced in a post on Medium.
The release states that the new security measures will be provided by a group of established insurers, which has been made possible by risk management specialists at Aon. It goes on to state that the conglomerate were willing to provide coverage for the Winklevoss-twin-owned exchange since it has proved itself a leading custodian of digital assets.
The supporting Medium post states that the exchange’s online hot wallet will be covered under the policy, before going on to say that the inclusion of digital asset insurance will complement the existing fiat fund coverage provided by the Federal Deposit Insurance Corporation (FDIC). It continues:
“This furthers our mission to build the future of money by bolstering our commitment to providing you with a safe and secure platform to buy, sell, and store your digital assets.”
Adequate custody is one of the factors that many believe is causing hesitancy amongst institutional investors wanting to enter the digital currency market. Gemini hopes its increased security measures will be able to alleviate many of these legitimate concerns from those who do not trust themselves to secure their own cryptocurrencies.
The post on Medium also states that many insurance companies have been reluctant to provide their services to the cryptocurrency industry. This is largely down to the frequency of cyber attacks that have seen their perpetrators make off with millions from various exchanges’ coffers. This, coupled with inadequate security measures from the platforms themselves, has encouraged insurers to steer clear of the space.
According to Yusuf Hussain, Gemini’s head of risk, the company was able to demonstrate sufficient security practices to allow insurance companies to provide the cryptocurrency held in the company’s hot wallet with coverage. Hussain concluded that the news was a boon for both the exchange and the wider space:
“Not only is this a tremendous win for Gemini customers but this is also a win for the broader crypto industry in furthering consumer protection. Onward and upward.”
Despite the bear market of 2018, the Gemini exchange continues to improve aspects of the underlying digital currency infrastructure.
It recently announced the launch of a stable coin designed to reduce reliance on the hugely controversial U.S. dollar Tether coin. Such upgrades should allow for greater investor confidence when the market finally turns and money begins to pour in as it did at the tail end of 2017.
Featured image from Shutterstock.
The post Gemini Exchange Hopes to Appeal to Institutional Cash with Asset Insurance appeared first on NewsBTC.
Source: New

Buterin: Bitcoin, Ethereum ETFs are Good, But Need Easier Ways For Public to Buy

On July 29, Ethereum co-founder and renowned blockchain developer Vitalik Buterin discussed the necessity of infrastructure around Bitcoin and Ethereum, and the need to create better ways for the public to invest in major digital assets.
Easier Methods of Purchasing Crypto
Specifically, Buterin addressed the more institutionally-connected Bitcoin exchange traded funds (ETFs). In his Tweet, Buterin inferred that the institutional direction is not where the cryptocurrency industry needs to go. Instead, he said that the industry needs to focus more on the practical applications for digital currencies for people on the street, to make crypto as widely available as possible, and make digital asset purchases as easy as it is to buy gift/debit cards today. The Tweet reads as follows:

I think there's too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.
— Vitalik Non-giver of Ether (@VitalikButerin) July 29, 2018

In contrast to this statement by Buterin, General Counsel and CCO of Huobi UK, Josh Goodbody, spoke with NewsBTC earlier this month about the importance of institutional investors and related ETFs for the crypto industry.
Goodbody said that the crypto industry cannot mature if investors do not have confidence in the infrastructure they are using, commenting on both the importance of decentralized operations and larger investors. In relation, he said that recent news from the Securities and Exchange Commission (SEC) that more Bitcoin ETFs are on the way is a “natural progression in the cryptocurrency industry.”

Goodbody said: “Bringing in asset classes and financial vehicles into the crypto space will give investors the exposure they’re comfortable with. Not everyone wants to hold private keys. As long as it’s launched by a reputable market participant, we think it’s a positive development for the industry.”

Going back to Buterin, he is focusing more on the “actual adoption” of cryptocurrencies. Looking at both arguments, it’s easy to see that, in fact, both parts are necessary to complete the whole. Consider, for example, that a Gallup poll from last year that indicated that only 2% of Americans currently own Bitcoin.
In relation, and even more telling, is CareerBuilder’s 2017 survey, which revealed that around 80% of American workers live paycheck to paycheck. What’s worth considering is that, for these folks, “ETFs” and “Bitcoin futures” may as well be a foreign language.
Over the past week, Bitcoin rallied to a two-month high of over $8,300. Some within the cryptocurrency community believe that the price increases were related to speculation that one of the several ETF proposals submitted to the SEC recently was soon be accepted.
Unfortunately, that wasn’t the case. What happened? The U.S. financial watchdog rejected the ETF proposal of Cameron and Tyler Winklevoss – owners of the Gemini Exchange platform.
As noted by NewsBTC, whilst the Winklevoss effort wasn’t the most anticipated application for a Bitcoin ETF, the ruling from the SEC could be seen to be directed at the cryptocurrency industry itself rather than a specific proposal. It therefore seems possible that other high-profile applications, like those from the VanEck and SolidX partnership, could also be rejected on similar grounds. August 16 is the SEC’s deadline to act on these specific proposals.
The post Buterin: Bitcoin, Ethereum ETFs are Good, But Need Easier Ways For Public to Buy appeared first on NewsBTC.
Source: New

Some Cryptos Trading 500% Higher on Bithumb, Market Manipulation Woes

Bithumb traders have recently experienced an abnormal surge in the price of some crypto, with tokens like Ethos trading six times over its average value only on the South Korean exchange. Many traders began to attribute these ludicrous prices to the Kimchi Premium, which local cryptocurrency traders have grown accustomed to over the most recent months.
Kimchi Premium Surges Bithumb Due To Low Liquidity
For those who are unaware, the so-called “Kimchi Premium” is a term used by some to describe the gap between cryptocurrency prices on South Korean exchanges and foreign exchanges. As noted in a recent NewsBTC report, Bitcoin values on Korean exchanges were over 30% higher than average market prices as the cryptocurrency reached all-time highs in December. To put this figure into perspective, Bitcoin traded at ~$19,500 on exchanges like Coinbase, while Korean exchanges saw the cryptocurrency trade at upwards of $25,000.
However, as noted in a statement from the Vice-Chairman of S. Korea’s Financial Services Commission, the premium has since been reduced as a direct result of governmental practices. Kim Yongbeom stated:
“The government’s practical policies led the ‘Kimchi Premium’ to disappear in South Korea. At its peak, the ‘Kimchi Premium’ in the local cryptocurrency exchange market reached 50 percent, due to unusual spike in demand and speculation. As of current, the price of cryptocurrencies is nearly identical to other markets, demonstrating stability in the South Korean cryptocurrency market.”
While this may be the case for other Korean exchanges, for Korea’s foremost exchange, the issue has only been magnified.
In June, Bithumb suffered a devastating hack, with the exchange noting that exchange-owned hot wallets were breached by an anonymous hacker. Immediately after receiving news of the hack, the Bithumb team shutdown deposits and withdrawals, which remain closed even one month after the ~$30 million security breach.
The shutdown of these two key features, which are essential for the operation of any exchange, has likely caused a situation where there are not enough sellers to match the orders of buyers. As the laws of supply and demand show, a lack of supply for high levels of demand will only push prices higher.
For cryptocurrencies like Ethos, this problem has hit especially hard, with Bithumb posting prices that are almost 600% higher than the average cost displayed on CoinmarketCap.

Other cryptocurrencies on the exchange have experienced similar issues, albeit not as severe, as Bithumb users continue the rush to buy undersupplied cryptocurrencies. Looking at the list of Bithumb-listed cryptocurrencies, it seems that there is a pattern with the coins experiencing atypical prices, with cryptos that have seen positive developments since the hack grow greatly in value. Some notable developments include Etho’s Universal Wallet, Augur’s platform release, and 0x’s potential Coinbase integration.

As a result of these absurd figures, CoinMarketCap, a leading cryptocurrency statistics site, has removed Bithumb’s pricing statistics from the volume-weighted figures displayed on their platform.
Manipulation Worries Remain For Regulators 
While this was likely not the result of direct manipulation by malicious individuals, Kimchi Premium events may be of interest to some regulators.
The Winklevoss Twins’ most recent ETF proposal brought up many concerns with regulators. Upon the announcement revised proposal’s denial, the SEC released an extensive document highlighting the reasoning behind the verdict. The American regulatory body noted that there were fears of manipulation with the value of the Winklevoss ETF, which would have been based off prices seen on Gemini.
While Gemini hasn’t run into any glaring issues regarding price manipulation yet, the most recent worries expressed by regulators may have led some to ask “what if Gemini had a similar experience to Bithumb or other Korean exchanges?”
In its current state, the Winklevoss-owned Gemini exchange has relatively low liquidity in comparison to a fiat-supported exchange like Coinbase Pro. If Gemini was to stop accepting deposits and withdrawals, who’s to say that investors on the exchange won’t take advantage of the opportunity and pump prices sky-high? Additionally, if a Bitcoin “whale” were to issue a large deposit onto the exchange now, they would likely be able to quickly manipulate the prices, driving the cost of an asset in any direction in which they deem necessary.
Keeping these points and scenarios in mind, it would have been easy for any market manipulator to artificially inflate, or deflate the price of a Gemini-backed Bitcoin ETF.
As pointed out by Joseph Young, editor at NewsBTC and long-time crypto analyst, the issues with manipulation may not be as pertinent of a worry in the upcoming VanEck and SolidX verdict, as the two ETFs are “structurally different.”
Featured Image From Shutterstock
The post Some Cryptos Trading 500% Higher on Bithumb, Market Manipulation Woes appeared first on NewsBTC.
Source: New