Binance Report: Is The Worst Over?

With Bitcoin flying the past few weeks, a lot of people have argued that it has finally found its bottom. The popular Binance exchange has released a comprehensive report on the state of the crypto market. They have found that the worst for the space is most likely over which indicates that from here on out it’s going to be all green with prices flying high. Of course, this is news for investors and traders who are eager to see blockchain technology reach mainstream appeal.
The Binance report states:

“Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.”

On top of this, Binance published another report which goes on to explain the internal correlations.

On the other hand, not everyone in the crypto space ecosystem has such a bullish outlook. The popular derivatives trader Tone Vays has a rather pessimistic belief (but perhaps realistic outlook, when looking at the year-long bear market) that a new bottom could still be formed.

There is NO magic price that turns a bear trend to a bull trend, it’s about how $BTCUSD gets to a price. I can see a scenario where I say:”I was wrong, #Bitcoin did bottom at $3k, now that we are at $8k”But I can also say:”I know $BTC is $10k, but I don’t think we bottomed” https://t.co/wQ26ypfV2C
— Tone Vays [#UnderstandBit] (@ToneVays) 9 April 2019
With the price of Bitcoin reaches the $5,000 mark recently, it seems more and more likely that Binance is right and there will not be any lower lows.
Retail
Although it does seem that retail investors still dominate trading in the crypto market.

“The cryptomarket’s frequent periods of extreme correlation are inseparable from the market’s highly retail-driven participation.”

The Binance report compares the dynamics in crypto to that of the Chinese stock market, suggesting that both markets are mainly packed full of retail investors.
Two years ago, “retail investors accounted for more than 99.8% of the Chinese stock market by number of accounts, more than 40% by market value, and more than 80% by trading volume.”
Both cryptocurrency and the Chinese stock market also suffer from high turnover rates.
The cryptocurrency market is comprised of around 700 crypto funds that combined show “a total of just under $10 billion in assets as of January 2019.”
In such a example in which their portfolios are wholly comprised of Bitcoin, “this would account for an upper bound of only 14% of the total market value of bitcoin.” Getting altcoins involved with this scenario would change the results so that the “institutional proportion overall could be less than 7% for the cryptoasset market.” This is just a small fraction of the dynamic in the stock market.

“Meanwhile, crypto’s estimated 7% institutional participation rate represents only one-thirteenth of that for the U.S. stock market.”

On a positive spin though, institutional investment is more than likely to rise as new Bitcoin trading platforms launch such as the regulated Bakkt.
The mind of the investor
The report later went onto discuss the trading that takes place in crypto:

“Generally speaking, non-professional investors are prone to becoming overconfident or overly pessimistic in reacting to market trends, leading to higher potential transaction volume, more volatile prices, as reported in numerous studies.”

On the flip side, a lot of crypto investors are more likely to hold their assets during a market decline.

“In the face of market downtrends, unlike many momentum-driven institutional investors, most investors in the crypto asset market may prefer to ‘HODL’ through a prolonged decline in prices.”

Bitcoin SV
Meanwhile, Craig Wright of Bitcoin SV is looking at a lot of hate from some of the bigger names in the following his move to sue Holdanaut and Peter McCormack, two popular crypto enthusiasts.
Yesterday, Binance announced a capital decision to delist Bitcoin SV after they received a lot of ill feelings from the cryptocurrency community in regards to the nChain scientist and founder of BSV who has claimed that he is Satoshi Nakamoto.
The popular crypto enthusiast, John McAfee has had his words on Wright saying,

“Enough is enough! There at least a dozen crypto adherents who know the true identity of Satoshi. I can assure you, 100%, it is NOT Craig Wright. This absurd claim of Craig’s is incomprehensible. Mr wright: Have you no shame? Seriously sir! Have you no shame?”

Source: Crypto Daily

When Will Crypto Overtake Cash?

Picture this. One day, in the not so distant future, cash will disappear and be a thing of the past. But without cash, what do we then rely on to pay for our day to day items?
There are two routes that can be taken, one of which is already being done in across a lot of nations, credit card/debit card payments. So for example, people could leave their wallets at home and just bring their cards out with them instead. The other route is cryptocurrency.
The first route is something that we are very much on, with contactless payment being very popular due to their simplicity and ease. But cryptocurrency payments are getting more popular across the globe, granted at a snail’s pace but even so, it is gaining traction in some parts of the world.
Blockchain technology seems to be the best promoter for this ‘cashless’ lifestyle. Nonetheless, the transition is already happening even without its help. Perhaps using the NFC (near field communication) function inside your phone is not that popular but simply swiping with a card is something even that older generations have caught on to.
Everyone knows of where payment systems are heading in the future, and it’s certainly not cash or any other physical assets. No, instead it’s all electronic.
Take a look at Sweden for example, only two percent of transactions are currently made in cash. Restaurants in New York’s Amazon Go stores are refusing to accept cash and companies are preparing for the future where cash remains mute. The NEXXO projects helping to speed up the transaction with a blockchain-powered solution for smaller firm’s and their customers while being in full compliance with local banks, law enforcement and local governments. Could this actually be real?
Ridding Cash
Ridding the use for cash is something that a lot of countries are already doing. A lot of big global hubs are preparing for a digitised future but could a nation be actually reaching 100 percent.
United States
It seems the United States is going in another direction though.
The United States is looking to introduce laws which would see this kind of store, that rejects cash payments, banned. Hackernoon’s Kirill Shilov has said that the main reason behind this is that they are “promoting racism and elitism”.
Of course, this is a controversial thing to say and as a councilman from the city of Philadelphia, William Greenlee puts it:

“Most of the people who don’t have credit tend to be lower income, minority, immigrants. It just seemed to me, if not intentional, at least a form of discrimination.”

These aren’t just words either as Massachusetts, along with the city of Philadelphia, have already banned stores that are rejecting cash as payment and it won’t be a surprise if New York or New Jersey will impose similar measures.
Even though this new legislation hasn’t been properly introduced yet, a lot of companies have found what could be a potential loophole. As Jim Kenney gave the green light for the change to outlaw stores that outlaws stores that don’t accept cash, a store is still able to use an app-based transaction if a paid membership is required to shop there.

Sweden
As we mentioned earlier, Sweden is right at the forefront of being a cashless economy. The percentage of cash in circulation in Sweden has significantly fallen, representing less than 1.2 percent of the nation’s GDP.
In fact, only two percent of transactions are made in cash and it is believed that said number will decrease to less than half a percent by next year!
A professor of economics at the University of California, Rod Garrett explained:

“Cash is really disappearing in Sweden. It’s not accepted at many businesses and many banks won’t deal with cash anymore.”

You may never have been to Sweden but if you have you may have noticed ‘no cash accepted’ signs throughout the nation’s variety of stores. There are even big banks that don’t deal with cash any more.
I can’t stress enough how forward thinking the Swedes are in this regard.
UK
Compared to ten years ago a lot of Brits won’t carry as much cash around with them. Maybe a bit of change here and thee for the bus but even then a lot of buses take contactless payments in 2019.
Seven in ten transactions are made digital, without cash. Granted, Sweden is a bit further afield with this but even so, it’s clear they are making progress.
The government might be going through a tough time right now with Brexit but with cashless payments, they have seen the trend and they are pushing towards a cashless future.
I suppose a cashless society isn’t a question of if but when? Debit cards just surpassed their cash equivalent in 2017 so the fight is nearly won.
Source: Crypto Daily

The Future Of TRON’s Ecosystem

TRON and Ethereum are two of some of the biggest cryptocurrencies in the cryptocurrency space and the professional rivalry between the two projects is talked about a lot in the industry.
That rivalry specifically comes from the founders of the two projects, Justin Sun (TRON) and Vitalik Buterin (Ethereum). Depending on who you support, Sun seems to be winning this battle and with the official launch of USDT-TRON, the question lingers as to whether TRON could be propelled strides ahead of Ethereum.
According to Sun, TRON’s main focus is to surpass Ethereum in dApps and smart contracts. So far though, Sun has put numerous things in place which includes acquiring BitTorrent, launch several projects and partnering with several big names in the industry. In a recent tweet, Sun announced that TRON owns more than 265,000 dApp users at that time with 16236 active dApp users. Next on the list is EOS with just under 200,000 and then Ethereum with just over 150,000 users within the period. Sun has taken this information from one of the leading dApp ranking websites, DappReview. As a result of this, the popular blockchain protocol has officially become the number one dApp platforms in the world.
Volatility
Of course, we all know that the value of a lot of cryptocurrencies, Bitcoin especially changes on a daily basis. According to Hackernoon, hedging with stablecoins is the only way to manage extreme price fluctuations.
The founder of TRON also mentioned that the goal is to move USDT from its Bitcoin-based protocol called Omni to a better network: TRON. On top of this, he added that the move will benefit not just TRON but its competitors, Bitcoin and Ethereum. This has the potential to lead to an overall performance boost in the whole blockchain ecosystem.
Sun has previously stated:

“The stablecoin is the most important thing when we come to the infrastructure and the whole industry. I think it will benefit the whole industry. Most of the congestion and the bad experience of the stablecoin comes from the Omni blockchain because this is an obsolete solution with extremely expensive, slow and also unreliable infrastructure for the stablecoin.”

Enter the Real-World
So even though, it’s still in its early stages, stablecoins have the potential for real-world applications. A few examples include things like TRX as a currency, P2P payments, TRX remittances and more, which we will go through in this video.
Remittances
The potential that stablecoins have is phenomenal. They have the power to change the lives of millions in developing countries with migrant worker have to send remittances through businesses like Western Union to get money back to their families and loved ones.
Even though this is a slow process, families will end up losing a big chunk of their funds to high fees.
TRX
As a currency, TRX could be used just like any other currency for commerce reasons, with the added benefits of being a digital currency. Stablecoins are also especially beneficial for cross-border payments which remove the need for conversion of different fiat currencies and instant transaction. As USDT-TRON will be a TRC20 token but this can massively increase TRX usage.

Value Crash
In the event that a fiat currency plummeting in value, the public could exchange the failing currency for USD-backed or EUR-backed quickly before they lost their savings due to hyper-inflation. This will also apply to TRX users.
P2P Payments
Stablecoins will also allow the use of smart financial contracts that can be enforceable over time. Smart contracts are self-executing contracts that exist on a blockchain network, without the need for a third party or central body to control it.
These autonomous and automatic transactions are traceable, irreversible, transparent and with this, they make them ideal for loan payments, taxes, salary, subscriptions and more.
Lending
dApps have the potential to utilise stablecoins for peer-to-peer lending. And so with this, a borrower can call for funding through a lending dApp, based on their risk profile and reputation, can negotiate a rate of return on the borrowed funds.
The Future of TRON
With a stablecoin like USDT-TRON, payments and trades will be a lot smoother and seamless. Based on the TRC20 protocol, the smart stablecoin on TRON will be able to support smart contracts and it will introduce a privacy option as well.
Sun has said:

“We’re getting lots of interest from these institutional investors. I think we’ll do everything to fulfill their requests because when the institutional investor gets into this industry they have lots of requests. Lots of institutions don’t want people to know they’re buying cryptocurrencies. They don’t want people to know their accounts or how much money is in their accounts.”

Source: Crypto Daily

What’s Happening With BTC, TRX, ETH & XRP?!

Another week, another crypto! These past few weeks have been very exciting for the crypto space with Bitcoin moving up past $5,000 and the majority of other cryptocurrencies following in its footsteps.
This week saw a lot of news stories surface but today we’re going to focus on the top three. Ripple’s new partnership could see XRP surge, China is moving towards banning BTC mining and Justin Sun hints at a potential partnership between TRON and Ethereum.
Ripple
With Ripple’s popularity continuously growing, the firm’s customer base is on the rise. They seem to be making partnerships with a lot of different companies across the globe and this week is no different.
The global IT giant, Tata Consultancy Services (TCS) has just joined forces with Ripple in order to boost worldwide remittance services to another level.

TCS is the company behind the cross-border payment solution of integrating with several other payment systems.
RippleNet has already got the advantage of lowering transactions fees for customers using its systems and now that cost could be pushed further down with the implementation of Quartz.
And in case you don’t know, Quartz is able to facilitate fast and cost-effectiveness remittances.
This partnership with Ripple could have an impact on the XRP price. Ripple’s native token could be greatly increased but only if some of the institutions using RippleNet are also using xRapid which would result in the usage is increasing.
China & Bitcoin
Even though the BTC was rising this week, bad news came with it for miners in China.
China’s central planning agency announced plans to ban Bitcoin mining and currently, they are undergoing soliciting comments before making a final determination. The news has ticked off a lot of miners and crypto experts.
Two of the biggest miners in the industry, Bitmain and Canaan Mining are both based in China so this would most likely hit them hard.
And according to some new research, just over 70 percent of Bitcoin’s network hashrate is sourced from Chinese-managed pools.
In order to stay secure, it’s crucial that no single party controls more than half of the Bitcoin network’s hashrate. With this, the same research says that the Chinese government could have a knock-on impact on these mining pools to censor specific users or miners.
But yes, earlier this week, the National Development and Reform Commission announced that it was planning to ban Bitcoin and cryptocurrency mining.
The Commission’s Guidelines for Industrial Adjustment Categories industries the country wishes to encourage, eliminate or restrict.
The Commission’s recent draft of guidelines, Bitcoin and cryptocurrencies mining was added to the list of activities slated for elimination.

If this ban does end up happening its more likely to push BTC prices up than down.The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price.It would also serve to kill the FUD that Bitcoin mining is centralized.https://t.co/OhVh8fUaXv
— Mati Greenspan (@MatiGreenspan) 9 April 2019
The price of Bitcoin is surely to see an impact because of this. Despite this, eToro’s Mati Greenspan said that the mining ban will more likely see a surge in the BTC price following the news so maybe there is still hope despite the ban?
TRON & Ethereum
We’ve all heard of Justin Sun, he’s one of the most prominent names in the crypto space and he is also the CEO and founder of TRON. He recently took part in a podcast making comments that TRON will “officially collaborate” with Ethereum.
Sun specifically said that “within this year we will see Tron even collaborate, officially collaborate, with Ethereum.” This was a response to a question on Ethereum co-founder Vitalik Buterin’s recent tweets about TRON with Sun saying that competition brings in a better product.
He later added, “I think in the future we will even collaborate with lots of Ethereum developers and also the enterprises built on Ethereum before to make the industry better.”
Interesting times for TRON as the Sun Network is on its way to the crypto space too.
If TRON and Ethereum do collaborate, the possibilities are endless so it will be exciting to see what could happen if the two protocols team up.
Source: Crypto Daily

China Could Be Preparing To BAN Crypto Mining

Cryptocurrency and China have had a rough history and over the past two years, things haven’t gone as smoothly as you’d hope. The top economic entity in the nation has pushed forward some new rules that would see government close down all cryptocurrency mining facilities across the country.
The act of crypto mining died down a few months ago, as the bear market meant it was essentially unprofitable to do so. Now, in China, crypto mining is one of the industries that has been put forward for immediate elimination, labelling crypto mining as a backward process and that they are a massive waste of resources.
Crypto Shut Down
The top economic body in China, The National Development and Reform Commission (NDRC), has revealed the proposed amendments to the country’s industrial structure, the paper contains three categories for industries that should be either restricted, eliminated or encouraged.
The government body recommended that cryptocurrency mining should be eliminated in the nation. Their reasoning behind this is that it pollutes the environment and that is a severe waste of resources. Now it is true that mining relies heavily upon energy in fact, some countries and regions across the globe putting in numerous measures to curb the activity.
According to the post:

“The elimination categories are mainly backward processes, technologies, equipment and products that do not meet the requirements of relevant laws and regulations, do not have safe production conditions, seriously waste resources, pollute the environment, and need to be eliminated.”

The rules were enacted in 2005 in China which makes it illegal for the Chinese public to invest in the eliminated industries. During the elimination period though, authorities have the right to raise electricity prices to force those firms to shut down their operations. On top of this, the manufacturing, sale and use of products related to the eliminated industries are also prohibited.
So if the government goes onto approving this recommendation, then cryptocurrency and the manufacture and sale of mining hardware would be prohibited in the nation. This would, of course, be a big blow to the space since China is currently home to some of the biggest crypto mining farms in the world due to the low electricity cost in the nation.
Miners in China would have to move their operations to other countries with cheaper electricity, which I suppose could be a good thing but you’d have to think of the human component, having to move your whole life to another country in order to keep mining which isn’t an easy decision. Currently, the accumulation of mining farms in China makes the industry centralised and by venturing to other countries would make it a more decentralised sector.
The Environmental Factor
Before the market succumbed to the bear market in November 2018, there was a huge demand for Bitcoin mining. This demand could single-handedly derail the efforts to limit the effects global warming is having on the planet.

According to research published in the Journal of Nature Climate Change, producing the leading digital currency with a speed of growing demand could completely defeat the aim to prevent global warming by 2033.
Co-author of the published work, Katie Taladay spoke on the matter and said, “Currently, the emissions from transportation, housing and food are considered the main contributors to ongoing climate change. This research illustrates that bitcoin should be added to this list.”
In recent months though, the act of mining has basically become mute since it is no longer profitable following the markets crash.
Tough Love
The Chinese government and cryptocurrency have a messy history. In September 2017, the People’s Bank of China declared that initial coin offerings and other token sales are banned in the nation as they are disruptive to China’s economic and financial stability.
Before the ICO ban, China was the leader of the cryptocurrency space, so to speak. But investment in the emerging market dropped massively following the decisions made by the government. The government later went on to ban all cryptocurrency related activities in the country too with authorities in Beijing’s Chaoyang district prohibiting all commercial venues from hosting crypto events.
The ban led to cryptocurrency exchanges moving their headquarters to countries like Singapore and Malta which have pro-crypto regulations. Xinhua Net, a state-backed media house bragged that China’s crackdown on everything crypto saw Bitcoin trading drop below one percent of the world’s total from a very high ninety percent.
Source: Crypto Daily

Buterin Tries To Encourage South Korea For Crypto Adoption

The popular co-founder of Ethereum, Vitalik Buterin and a bipartisan group of lawmakers have tried to persuade the government in South Korea to deregulate the blockchain space. According to them, the current laws are overly restrictive and therefore inhibit innovation.
These comments were made by Buterin while he was speaking at a meeting of the South Korean parliament where he stated, “Blockchain is a technology that can be run without cryptocurrencies, but there is no crypto without blockchain. Public blockchains rely heavily on cryptography. Therefore, cryptocurrencies are absolutely necessary.”
“Blockchain, not Bitcoin”
The South Korean government’s stance on blockchain is something that Buterin disagrees with. The government’s stance goes, “blockchain, not Bitcoin” with officials repeatedly trying to push the promotion of blockchain but they simultaneously are undermining cryptocurrencies and even banning ICOs.
In response to this, Buterin said that both crypto and blockchain are one in the same thing and cannot be separated from each other. In addition, he then goes on to say that ICOs are starting to slowly recover from their less than favourable image they garnered over the past year due to a significant number of scams that were in relation to initial coin offerings.

“ICOs have certainly improved, and will continue to improve in the future.”

Crypto Winter
The crypto winter has seen a lot of investors go through hard times. The price of Bitcoin sunk near the $3,000 mark and the whole market seemed almost… dead,
Despite this, Buterin highlighted the recent crypto winter and said that it was actually a blessing in disguise because it chased out a lot of the con-artists and revealed which projects are here for the long-term.

“The recent crypto scandals and market recession have [uncovered which projects] turned out to be scams and which projects are going to be sustainable.”

The founder of Reddit, Alexis Ohanian is becoming a well-known figure in the crypto space and mirrors this sentiment of Buterin’s.
Earlier this year, the Reddit founder said that Bitcoin investors shouldn’t be put down on the prolonged bear market because the mass purge was good for the long-term health of the crypto space.
“The speculators have fled and that’s great. Because the people who are now building on crypto are true believers. They’re actually building the infrastructure that it’s going to take to really make this happen.”

Brutal Bitcoin Winter is Great for Crypto Industry: Reddit Founder Alexis Ohanian https://t.co/vfbc7eEpdY
— CCN.com (@CCNMarkets) 21 February 2019
As the crypto winter is in a stage of recovery at the moment, communities are growing. The South Korean government has banned ICOS under the liberal President Moon Jae-in. They have also stripped crypto companies of tax breaks in response to the high volume of crypto scams in recent times.
This harsh legislative approach to digital currencies has caused an uproar in South Korea’s continuously increasing crypto community, which grew despite the nation’s draconian anti-growth policies.

Blockchain adoption
In other parts of the world, lawmakers are trying to encourage their governments to start embracing blockchain and crypto, saying the innovative technologies can boost their economies.
In France, members of parliament want the country to invest around 500 million euros in programs related to blockchain in order to make France a ‘blockchain nation’.

Pro-Crypto French MPs Want to Invest 500 Million Euros to Make France ‘Blockchain Nation’ https://t.co/H4gxrZQKwJ
— CCN.com (@CCNMarkets) 13 December 2018
On the other side of the world in the United States, lawmakers just brought in a legislation with the idea to promote cryptocurrency adoption across the nation in mind.
In December last year, congressmen Darren Soto and Ted Budd released a joint statement which highlighted the importance and ‘potential’ of cryptocurrencies and blockchain.

“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront.”

So with Vitalik Buterin speaking in South Korea this week, he also had a chance to speak with Nouriel Roubini, a well-known troll when it comes to Bitcoin.
You can see what went down here.
Source: Crypto Daily

The State Of Decentralised Exchanges On The ETH Network

For us involved in the crypto space, we’ve all heard of decentralised exchanges. They are an interesting and promising part of the ecosystem for the industry. Over the past ten years, millions upon millions have been stolen from centralised cryptocurrency exchanges. If we take a look at the infamous Mt. Gox exchange hack, six percent of all the Bitcoins in existence were stolen. A lot of significant figures in the industry have ganged up against centralised exchanges, with the Ethereum co-founder Vitalik Buterin stating that he hopes “centralised exchanges go burn in hell as much as possible” and one of the cryptos pioneers, Nick Szabo calling trusted third parties “security holes”. In fact, the will to move away from the trust-based model is a founding principle of Bitcoin according to BTC’s whitepaper.
The solution to all the glaring flaws of centralised exchanges has been seen as decentralised exchanges which offer a trustless process for virtual asset deposits. Even so, three years after the initial start of them, the volume of cryptocurrencies traded on decentralised exchanges is currently less than one percent of that reported to be traded on centralised exchanges according to Hackernoon.
Throughout this article, we’re going to give an overview of the state of decentralised exchanges on the Ethereum network.
DEX
Decentralised exchanges are something that isn’t fully agreed-upon between crypto enthusiasts and industry leaders. The idea of decentralisation is something that is best regarded as a spectrum.
As Stephan Boguslavsky writes for Hackernoon:

“If we consider the core functions of exchanges to be capital deposits, order books, order matching and asset exchange, then few exchanges which are commonly deemed ‘decentralised’ decentralise all four aspects. However, the majority of ‘DEXs’ decentralise capital deposits.”

Ethereum Network
There are at least four dozen different protocols currently in use by operating decentralised exchanges and around a hundred protocols.
There’s certain terminology when it comes to DEXs such as the following:
 

“Market Maker: a user who places an order (a limit order) in the orderbook for someone else to take

Market Taker: a user who takes the market maker’s order (through an instant order)

Off-chain orderbooks: limit orders placed by users are kept off the blockchain

On-chain order-matching: limit orders and instant orders are matched on the blockchain

On-chain settlement: the exchange of tokens is settled on the blockchain, rather than by an off-chain ‘I-owe-you’ basis, which occurs on centralised exchanges”

 
When it comes to the Ethereum network, DEX’s can be divided into the following categories:
“Off-chain protocol/0x protocol: protocols with on-chain settlement, on-chain order-matching and off-chain orderbooks
Includes 0x protocol and relayers using the 0x protocol (e.g. Radar Relay)
Also includes EtherDelta/ForkDelta and exchanges which use similar smart contracts (such as token.store)
Fully on-chain: On-chain settlement, on-chain order-matching and on-chain orderbooks

Oasis DEX
Semi-decentralised/hybrid exchanges: on-chain settlement, off-chain order-matching and off-chain orderbooks
IDEX, DEx.top, DDEX, Bithumb DEX
Liquidity pools: on-chain settlement, but trades are not peer to peer, but between traders and a liquidity pool
Bancor, Kyber Network”
Issues that DEXs Face
Despite all this, DEXs aren’t perfect and they do face some issues but here are the main two:
Usability
When it comes to trading volume, centralised exchanges like Binance destroy DEXs in terms of trading volume of ERC20 tokens. This is mainly down to traders currently preferring the simplicity and speed of off-chain trading to security.
For beginners, DEXs aren’t that easy to use. Some of the exchanges lack the automatic order-matching and have relatively complicated ways of depositing to the smart contract such as wrapping ETH
Single-blockchain
There is a reason as to why only a small fraction of cryptocurrency is traded on DEXs. The main reason is that simple to use DEXs only offer trade on one blockchain with most of the top ten cryptocurrency pairs like BTC and ETH not able to be traded on user-friendly DEXs.
Conclusion
Decentralised exchanges are much needed for the secure trading of digital currencies. By their very nature, centralised exchanges have one huge flaw and that is human error.
The Ethereum network has a variety of DEXs built on it with differing architectures. Even so, fully trustless exchanges on the Ethereum network lose out to centralised exchanges when it comes to the functionality of the EOS network.
In the end, trustless exchanges are yet to facilitate cross-chain exchanges in a user-friendly fashion.
Source: Crypto Daily

How Europe Is Paving The Way For Adoption

The adoption of Bitcoin and cryptocurrency is something that is highly anticipated by almost everyone involved in the industry. Now, it seems that adoption is getting a boost in Slovenia and Croatia with the number of stores that are accepting cryptocurrencies being on the rise.
Starting with merchants in one of the largest shopping and entertainment complexes in Europe, Elipay has now been implemented in three hundred stores in Slovenia and has started to expand into Croatia following approval by the nation’s central bank.
The adoption of cryptocurrency has been growing at a fast rate in Slovenia. Elipay by the Eligma startup is a crypto payment mobile app for iOS and Android devices. Several stores at one of the biggest shopping and entertainment complexes in Europe, Bitcoin City have implemented Elipay which currently supports Bitcoin, Bitcoin Cash and the ELI token.
The CEO of Eligma Dejan Roljic spoke to Bitcoin.com at the end of last week saying, “we have reached another Elipay milestone this week – 300 locations … About one third of them are in Bitcoin City.”
As described by Eligma, Bitcoin City is “the result of infusing one of Central Europe’s largest and most important commercial, shopping and logistic areas, BTC City,” with cryptocurrencies and other innovations. It’s also worth noting that there are more than five hundred stores in Bitcoin City.
According to Roljic, across the nation, “the number of Elipay locations is constantly increasing.” Following on from this, he said:

“Elipay now covers most service and product categories: food and drinks, fashion, electronics, services, sports and leisure, entertainment, home and garden, toys and kids, pets, auto and moto, travel, adult, online stores, and other.”

As was announced on 5th April, the latest addition was for Intaxi which allows taxi rides in and around the capital city to be paid for with cryptocurrencies.
Roljic went on to say, “In addition to the use of crypto for shopping with the Elipay system, the Bank of Slovenia has also approved euro value to be added into Elipay by means of credit / debit cards and SEPA.”

Eligma has been working on its worldwide expansion by starting with Croatia. The company tweeted out on 1st April, “the Croatian National Bank has confirmed that Elipay can legally operate in Croatia.”

In explaining the new to Bitcoin.com, Roljic said that after the central bank “confirmed the legality of Elipay operating in Croatia, the localization of the system started taking place,” emphasizing that it “will actually be completed in the course of next week.” He also revealed that his company is “already in contact with ERP [Enterprise Resource Planning software] providers as well as individual merchants and service providers, so that the first integrations can be expected as early as next month.”

He then went on to say:

“We will initially test and adjust the expansion model. In that phase, our goal is to enter the first 20 stores … If the testing is successful and a decision is made to fully expand throughout Croatia, then we anticipate that over 200 locations could integrate Elipay by the end of the year.”

One of the biggest ERP and prospective payment system providers in Croatia is dubbed as ‘Billy’. ‘Billy’ is in the process of integrating Elipay into its system. The CEO explained that after this is finished, the system will “be tested and re-evaluated. This will be followed by a review of the technical documentation in order to prevent any potential issues with future updates.” On top of this, Eligma has also been negotiating with another ERP provider in the nation.
Adoption
As the adoption rate rapidly increases in Slovenia and Croatia, the CEO of Coinbase, Brian Armstrong has had his say on what three things are going to help push adoption.
Speaking in an AMA session on 2nd April, Armstrong was asked several questions by the community but the first and most pressing matter seemed to be what the industry needed to achieve the most, adoption. In the AMA session, the CEO highlighted the three things that are crucial to both crypto and Bitcoin growth which is scalability, volatility and usability.
Source: Crypto Daily

SEC Accept That Not All ICOs Are Securities

Even though there will be some strict conditions, one business travel company will be allowed to sell cryptocurrency tokens. The United States-based company received a published letter from the SEC earlier this week which was a response to a prior letter from the firm’s lawyer. This is an “about face” for the SEC as their director (Jay Clayton), in the past has claimed that almost every token he has ever come across is security but Jay Clayton recently softened his stance on Ethereum.
The letter, sent to the firm TurnKey Jet, outlines the conditions under which the SEC has decided to recommend “no enforcement”, agreeing that the tokens the firm has are not securities.
For those that don’t know, TurnKey Jet is a private airline firm that is one of the leaders in private aviation. As it says on their website, their mission is “To provide our clients with the ultimate service in safety, security and reliability.” Going on to say that they take pride “getting you where you want to go – when you want to go – is only one reason to join the TurnKey Jet family. With Turnkey Jet, you get more than just the plane. When you partner with us, you are guaranteed the total experience.”
The Catch
So it seems that the most difficult condition placed on TurnKey is that tokens must be non-transferable. The Securities and Exchange Commission state that “TKJ will restrict transfers of Tokens to TKJ Wallets only, and not to wallets external to the Platform.”
Although it seems that limiting transferability isn’t an easy thing to do, not just for TKJ but for any blockchain platform. The letter sent to TKJ by the SEC described that the firm’s blockchain program as centralised and permissioned.

“The proposed TKJ Tokens will operate and be deployed on the Platform and Network consisting of a private, permissioned, centralized blockchain network and smart contract infrastructure operated by TKJ. TKJ will run the Platform and Network and use third-party service providers, as necessary, to meet operational requirements, including providers of internal tools for developers, user-facing app interfaces, wallets, smart contract infrastructure and private network and token management services.”

Of course, there is another condition of non-enforcement is that the firm must not use the proceed from sales of tokens for developing the platform. Furthermore, it must also only buy back tokens at a discount. Those who hold TKJ must always take a loss though if they opt not to use the tokens.

TKJ Tokens
The new TKJ token from Turnkey has been presented as a means to cut down on the friction of sending and receiving global write payments for flights. They go on to say that the use of a blockchain will assist in fight ‘fraud’. The firm is hoping that by offering prepaid tokens, people will use their private jet service a lot more than before by arguing that the issues related with traditional payment methods for the more pricey services are what drive people away from using the airline.
Although the company only operates two jets at the time of writing, they are getting ready to add another one at some point in the near future. Although the company’s website isn’t anything too flashy, it seems that their service is. The firm is based in Delaware but it’s main operations take place in Florida.
Even though the crypto/blockchain/ space is currently confused about the difference between a utility token and security, TurnKey is the first business to receive a ‘no-action’ from the SEC.
The securities commission seems quite a contempt with the airline issuing utility tokens as long as the firm meets the list of requirements.
The whole idea of TKJ tokens is basically a single-use stablecoin, being worth $1 and it will keep on that price for throughout the life of the program. While the SEC currently recommends no enforcement, they are expressing their regulatory power by dictating the future price of the token and the nature of its use. If people start buying TKJ tokens and want to redeem them without using them, they aren’t allowing them to get the full value back.
In the end, the non-transferable nature of the TKJ tokens means that their actual utility is very limited. Holders can do two things with them, use them for air services with a single company or sell them back to the same firm for a loss.
Source: Crypto Daily

Is Coinbase Bias Towards XRP?

One of the biggest cryptocurrency exchanges in the world has just started to offer international remittance services with Ripple’s XRP and USDC which has been considered a controversial move as some believe that it is just a plain and obvious advertisement for the xRapid service and project’s native token, XRP.
You may have already heard about it by now but yes, Coinbase has launched free international remittance services with XRP. The United States based exchange announced earlier this week that it will now allow its users to send money across the world using XRP and USDC, all for free.

Furthermore, the firm has confirmed that there won’t be any extra fees involved when users transfer these cryptocurrencies to each other in all parts of the globe. Coinbase posted on their new webpage:

“You can now send money to any user with a Coinbase account around the world using XRP or USDC. By using cryptocurrencies that are optimized for cross-border transmission, you can send and receive money virtually instantly by sending those cryptocurrencies and having the recipient convert them into local currency. There’s zero fee for sending to other Coinbase users and a nominal on-chain network fee for sending outside of Coinbase.”

Ripple enthusiasts of course welcomes this new with open arms as there is now a big belief that the service could assist the cryptocurrency in gaining massive adoption. Users of the Coinbase platform in supported nations like India, Philippines and Mexico will be able to make use of this service instantly while other countries will have to transfer their funds to other exchanges to allow for a much easier conversion.
All this hype has been building but Coinbase haven’t officially stated that the remittance tool it would be making use of despite the high chance that it’s going to be xRapid. The remittance tool by Ripple makes use of XRP to settle cross-border transactions in a quick and effective way whilst also lowering the costs that are involved.
This is the newest development which comes a month after XRP was added to Coinbase’s directory of supported cryptocurrencies. By making use of Ripple’s XRP and xRapid, the chances are high that Coinbase is very bullish on the cryptocurrency.
There are some enthusiasts though that think that the latest move by Coinbase is almost an advertisement for Ripple and its products which has left others wondering.
One cryptocurrency analyst who goes by the name of, C3|Nik is a believer that the promotion of XRP on Coinbase makes sense when you consider the fact that the crypto exchange is backed by investors who only have money in mind. As an exchange, money is what will incentivise Coinbase but the technologies behind XRP will allow them to transfer funds across the world in real-time and this is something that could bring more users to their platform.
There are some crypto enthusiasts that found it odd that Coinbase chose to support XRP in such a way and not any of the other cryptocurrencies. The analyst went on to say, “CoinBase did not endorse the buggy Lightning network or the slow and expensive on-chain #Bitcoin #BTC transactions for cross-border flows. They endorsed #Ripple #XRP instead.”
Some people are even surprised by teh Coinbase promotion of XRP and were praying that it was just an April Fools joke but some believe that things change in the cryptocurrency space as long as there is a mutually beneficial relationship to be explored.
The Coinbase/XRP service is mainly available in Mexico and Asia but it is expected to face some hard competition in that area too. On the same day that Coinbase made the announcement (April 1st), a platform owned by Viamericas, Vianex announced that it is offering thousands of convenient cash payout locations throughout Mexico, central and South America, India and Philippines. This is an interesting development due to viamericas makes use of xRapid and is partner to Ripple.
Source: Crypto Daily

Bitcoin Isn’t Money, It’s A Protocol

Even though it’s still in its infancy, Bitcoin is a popular asset in the world of modern financing but the concept behind it is over a decade old. The double spending problem has been fixed meaning that it is possible to use a digital certificate to replace money and be sure that no one else can spend that certificate as long as you hold it. This is an unprecedented paradigm shift, the implication of which are not yet fully understood and for which the tools do not yet exist to fully take advantage of this emerging idea.
This kind of new technology will need some thinking when it comes to developing businesses that are built on it. It’s kind of similar to that of the original pioneers of email that didn’t fully understand what they were offering but they were selling for year. With Bitcoin, what is needed is people who have the correct way of thinking and will emerge so that it is able to reach its full potential and becomes ubiquitous.
Bitcoin is something that needs to be understood, but on its own terms as long as people keep calling it ‘online money’, I don’t think it will ever get the respect factor that it needs. In addition to this, as reported by Beautyon for Hackernoon, “thinking about Bitcoin as money is as absurd as thinking about email as another form of sending letters by post; one not only replaces the other but it profoundly changes the way people send and consume messages.” It isn’t a simple replacement or a “one dimensional improvement” of an existing idea or service.
Beautyon has previously made the argument that Bitcoin isn’t money and that it is instead a protocol. If you see it in this way, with the correct assumptions, you are able to start the process of putting bitcoin in a proper context and it will allow you to make well-thought through suggestions in regards to the sort of services that might be profitable based on it.
Protocol, not Money
So if Bitcoin isn’t money and is instead classed as a protocol, then setting up crypto exchanges that mimic real world money, stock and commodity exchanges to trade in, is not the whole means for discovering its price. You would not have to set up an email exchange in order to discover the value of email services and the same thing applies to Bitcoin.
Beautyon goes onto say:

“Staying with this train of thought, when you type in an email on your Gmail account, you are inputting your ‘letter’. You press send, it goes through your ISP, over the internets, into the ISP of your recipient and then it is outputted on your recipient’s machine. The same is true of Bitcoin; you input money on one end through a service and then send the Bitcoin to your recipient, without an intermediary to handle the transfer. Once Bitcoin does its job of moving your value across the globe to its recipient it needs to be ‘read out’, i.e. turned back into money, in the same way that your letter is displayed to its recipient in an email.”

Using email as an example, once the email is sent and received, it doesn’t have any other use other than to be a record in history for the information that you (or someone else) was sending. Bitcoin will do all that accounting work for you on the blockchain and so a good service built on it will store its extended transaction details for you, all locally.

But what you need to have as the recipient of Bitcoin is good and services not actually Bitcoin itself.
Here to Stay
Bitcoin has a lot of good ideas behind it and most of them will be here to stay. With the volume of people downloading and using it increases, such as Hotmail, it will eventually reach mainstream adoption and spread like a virus (but a good one) throughout the ether to everyone’s digital device. Whenever this happens, the correct business models will, all of sudden, come out of nowhere as they will become obvious in a similar way to Gmail, Hotmail and the social media giant, Facebook.
To finish off, Beautyon says:

“In the future, I imagine that very few people will speculate on the value of Bitcoin, because even though that might be possible, and even profitable, there will be more money to be made in providing easy-to-use Bitcoin services that take full advantages of what Bitcoin is.”

Source: Crypto Daily

BTCs Big Price Surge Sparks Hope For The Future

Now we all know what the last year has been like for Bitcoin but if you are unaware it hasn’t been great to say the least.
2018 started on a pretty decent note with Bitcoin just losing a bit of its value from its $20,000 all-time high but then throughout the rest of the year, things just took a turn for the worse. By mid-December 2018, the price of the leading cryptocurrency was below the $4,000 mark following a devastating crash. This led to a lot of investors leaving the industry thinking that the bubble had burst once and for all.
And maybe it had burst… for 2018. At the start of this year, things started to be a bit more green rather than red and the past day is no exception. We saw Bitcoin surge past $4,500 on Tuesday which left a lot of people happy, excited, confused, bullish and more.
New Highs
So Bitcoin has burst to its highest level of the year and in just over five months yesterday. This sent Bitcoin towards the $5,000 mark and a lot of other smaller cryptocurrencies seemed to follow in its footsteps. Not on the same levels as BTC but they still made some decent gains with Litecoin seeing 15 percent increases and Cardano going up by nearly 20 percent by Tuesday afternoon.
So yes, Bitcoin saw some pretty big gains yesterday, and in Asian trading, it soared as much as 20 percent which saw it surpass $5,000 for the first time since mid-November 2018. Later in the day, the digital asset was priced around $4,700, which was around a 15 percent increase. According to Reuters, this was the biggest one-day gain since April last year!
So why did BTC surge?
The Chief Executive of the London-based crypto company, BCB Group, Oliver von Landsberg-Sadie has said that this big surge was most likely caused by an algorithmic order which is worth around $100 million spread across some of the bigger major exchanges such as Kraken and the United States based, Coinbase.
The Chief Executive said, “there has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC.” Following on from this, he went on to say, “if you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”
Although it’s to early for analysts to point out any specific news or developments in the cryptocurrency sector that could explain the unknown buyer’s big order.
Outsized price moves of this kind are rarely seen in traditional markets but are something that is quite common when it comes to the crypto space, where liquidity is thin and prices are relatively blurry.
So orders of a big magnitude always tend to trigger buying by algorithmic traders. At least, that’s according to the founder of the popular site CryptoCompare, Charlie Hayter.

With Bitcoin making some significant gains, there were more than six million trades in around an hour. According to Hayter, up to four times the usual amount with the order having a main focus on Asian-based exchanges. “You trigger other order books to play catch up, and that creates a buying frenzy.”
Altcoin Season
The surge that saw Bitcoin make big gains also saw the altcoins of the market follow in its footsteps. Some worth noting include Ethereum and Ripple’s XRP which both saw surges of around ten percent.
Some of the price moves of smaller coins, outside of the top ten, still seem to have a connection to Bitcoin as they all account for more than half of the crypto markets value.
A popular analyst at eToro in Israel has spoken on Bitcoin before saying “usually bitcoin is the leader of the market and altcoins tend to follow, as far as direction and sentiment is concerned. Today bitcoin is in the driving seat.”
So far in 2019, the markets have been relatively calm. Bitcoin has been trading below the $4,000 region for the majority of the first quarter of the year but now, it seems that the prices are making a move.
When Bitcoin moves in a significant fashion, there are always some experts or analysts that try to make sense of why it happened. In this case, it seems that an unknown buyer is behind this one.
That being said, we can only hope that this is a sign of good things to come for Bitcoin and the market.
Source: Crypto Daily

HUGE News From SEC, Is The BTC ETF Approval Finally Here?

In what seems to be some very exciting news for the cryptocurrency space, the United States Securities and Exchange Commission has made the decision to approve not one but two applications for Bitcoin-based exchange traded funds. Early next month, Bitcoin ETFs will be launched by Bitwise Asset Management and investment management firm VanEck.
Before we go any further, we should probably say Happy April Fools Day!
Yes unfortunately, the United States SEC has not approved two ETF applications, in fact they haven’t even approved one as of yet but it is on the Commissions to do list for things to do over this next year.
Fun fact though, we aren’t the only news source to attempt to catch out the reader today as so have Finance Magnates going on to say that not only did the SEC approve two ETF applications but that the price of Bitcoin rose up past the $6,000 mark over the weekend too.
With all these jokes and laughs in mind, let’s talk about what we know so far about the SEC and the journey they have taken us on to approve the Bitcoin ETF.
The Road to Approval
The Bitcoin ETF is all but here at the moment but hopes are still high that it is on the way for sometime in 2019, and if everything goes to plan then it will also help boost the price of Bitcoin which will help it reach the highs that it reached back in December of 2017.
An interesting story that came out earlier in the year was that of a solicitation notice that was issued by the SEC. with institutional finances getting ready to flood into the market and save cryptocurrency, the chairman of the SEC, Jay Clayton has spoken out about the lack of surveillance as well as an instance fraud at the Consensus Invest Conference. On top of this, Clayton spoke on how he isn’t prepared for the occurrence of a Bitcoin ETF approval this year.

“It’s an issue (manipulation) that needs to be addressed before I would be comfortable. We’ve seen some thefts around digital assets that make you scratch your head. We care that the assets underlying that ETF has good custody and that they’re not going to disappear.”

Earlier in the year, a solicitation notice was issued with the hopes that cable companies would provide viewable data of the most common blockchains in a sense that there isn’t any “there is no loss in data completeness and accuracy due to the data transformation tools and processes applied.”
The US SEC said that potential firms will aim to:

“Provide blockchain data to support the SEC’s efforts to monitor risk, improve compliance, and inform Commission policy with respect to digital assets. The SEC is seeking information for potential sources to support the goal of acquiring data for the most widely used blockchain ledgers, including the universe of available information and transaction details.”

It seemed to be just like a coincidence that this very notice came in when the Office of Compliance Inspections and Examinations (OCIE) made cryptocurrencies the top of their list for assets to make sure they look deeper into the emerging asset class over this next year.
A report published by the OCIE said “will continue with their mandate, complementing and advising the SEC in their effort to protect the American people.”

Second ETF
For the first time since August last in 2018, the SEC has got a second Bitcoin ETF proposal to put under review. This news came as they started to look at the resubmitted VanEck-SolidX proposal filed on 31st January.
The Bitcoin ETF proposal now appeared on the Federal Register which officially kicks off the 45-day period the regulator has to make an initial decision.
Within this time, SEC has three choices.
They can either approve the proposal, decline the proposal or put another delay on the proposal. The public is looking to file responses and they now have three weeks to comment.
The director of digital asset strategy at VanEck, Gabour Gurbacs has highlighted that he believes the Bitcoin ETF will be in the best interest for the public.
As per his words, he has been working with regulators and other market participants to bring “simplicity, transparency, and professional market standards to digital assets.” Following on from this, Gurbacs added, “I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.”
So whereas our April Fools might not have gone down as well as we’d hoped, there is still a lot of hope for when the Bitcoin ETF will get approved.
Source: Crypto Daily

WhatsApp To Adopt BTC? Plus Exciting News From TRX & XRP

Another week in the crypto space and there’s plenty of news to go around. This week saw numerous news stories including TRON getting newfound support on eToro, WhatsApp getting ready to support Bitcoin and the popular US lawyer, Jake Chervinsky has said not to hold your breath when it comes to a Ripple security ruling.
TRON
Let’s start with TRON.
One of the biggest cryptocurrencies in the space is TRON (TRX) and it is about to join fourteen other digital currencies on the multi-asset exchange and social trading community known as eToro.
With this support from eToro, TRON will be available to buy and trade by more than ten million active users alongside other high volume cryptocurrencies such as EOS, Dash, Ethereum and Bitcoin.
In case you didn’t know, eToro empowers people to invest in their own terms. The platform allows the user to trade and invest in the assets that they want to from stocks and commodities to crypto assets.
According to a recent announcement that was published on Medium by the TRON Foundation, TRX will be also included on eToro’s CryptoPortfolio which enables investors to diversify across all available digital assets with just one click.

“With our listing on eToro, we’re giving TRX holders another great platform on which to manage their assets,” said TRON’s founder, Justin Sun. “These steps will help grow the blockchain community and expand our reach around the world.”

The eToro platform is one of the biggest and leading investment platforms in the world which has a history of closely researching the progress, technical potential and fundamentals of each token before investment. The platform will only include cryptocurrencies whose projects are deemed to show promise.

“TRON is making fast progress towards lofty ambitions, and has rightly garnered the attention of the crypto community,” said eToro CEO Yoni Assia, in the announcement. “Given the relative youth of blockchain technology, investors in crypto-assets are investing in big ideas and seeking out companies that execute on big ideas.”

WhatsApp
Onto the next topic which is in regards to the globally famous WhatsApp who could be getting ready to adopt Bitcoin sooner rather than later.
This might be what happened through the new crypto wallet service developed by Wuabit which will allow users of the the popular app to access their crypto holding from within WhatsApp. Wallet functions will include, sending, receiving and trading but in the future, more crypto related tasks are going to be added.
Furthermore, the team is planning to bring the service to other social media platforms like Facebook Messenger, Viber and Telegram. The rumours indicate that the public beta will get going next month too.
The company has confirmed that Artificial Intelligence (AI) will be a big part of the new service and users will be able to type statements like “send 1 BTC to John” (if you have that much to spare of course), this is a very convenient way for non-tech savvy people to send and receive cryptocurrency as well as it will help boost adoption.

Wuabit has described itself as a “cryptocurrency wallet accessible via a chat interface.”
Bitcoin Cash, Litecoin and Ethereum have also been considered as cryptocurrencies for being implemented:

“We are near completing the wallet core service starting with BTC. By using WhatsApp/SMS/Telegram you can access that wallet easily. Crypto payments via WhatsApp can introduce greater numbers of new users who only know how to chat to this complicated space. Usability is key in user adoption and a great enabler.”

Ripple
Last but not least, let’s talk about Ripple.
The popular United States lawyer, Jake Chervinsky works for the equally popular Kobre & Kim law firm. Chervinsky has recently said that the crypto industry shouldn’t expect a decision to be made on Ripple XRP’s status as a security.
Furthermore, Chervinsky took to Twitter last week to express his feelings towards the Ripple lawsuit and laid out what we can expect over the next year.
Whereas the lawsuit is still in its early stages, it has been talked about for a while now:

“Even though we’ve been talking about the Ripple securities litigation for almost a year, the case basically just started this week, and it’ll be a very long time – another year or more – before anything truly interesting happens.”

The lawsuit was filed to determine whether or not the XRP token should be classed as a security. The plaintiff has argued that Ripple misleads investors about the potential future price of the digital asset as well as believing that XRP was acting more like a stock than the currency they thought they were getting involved with.
In the end, Chervinsky said that enthusiasts shouldn’t hold their breath for a decision to be made anytime soon saying:

“So when will we know if XRP is security? Probably not in 2019 unless Ripple decides to change course & voluntarily treat XRP as security (which I sincerely doubt). Class actions are good for many things, but quickly resolving complex securities issues isn’t one of them.”

Source: Crypto Daily

Ex-Quadriga Lawyer Exposes Canadian Exchange

One of the biggest stories to come out of this year was Quadriga CX exchange disaster. Just as a quick recap, the exchange had a long and successful run as Canada’s biggest and best Bitcoin trading exchange. The CEO and founder of the exchange recently died and he took the password to all the accounts with him. Not his wife knew these keys and when they tried to get into his computer they couldn’t find anything in regards to the required details to get into accounts leaving the exchange useless and millions of dollars worth of cryptocurrency safe but just out of reach.
The exchange had a good time as the biggest exchange in Canada. Christine Duhaime is the former counsel to the exchange and has recently spoken to CoinDesk to give her thoughts on the exchange and her history at the company.
Duhaime has said in a blog post that the firm was among the only exchanges to publicly publish audits or obtain cold storage insurance.
Both choices were laudable and rare among exchanges in 2015 after she was sacked following six months of providing advice on regulatory issues. The lawyer said that the CEO, Gerald Cotten, wanted to move away from being publicly listed company and shook out all the law and order types. She has said that the firm is composed of four companies in total and therefore four sets of shareholders have a stake in the assets of Quadriga.
Being her firm’s hiring Quadriga, the firm believed it had been inadvertently involved in a pump and dump scheme.

“It is my belief that the whole QuadrigaCX team came to believe that the company may have unwittingly become involved in a Vancouver pump-and-dump scheme. Whether it had been drawn into a pump-and-dump is not for me to say because it was before my time, but I can say that QuadrigaCX was run by tech geeks, who were competitive, ambitious and smart but who were unfamiliar with the capital markets ecosystem in Vancouver.”

Following this, the Canadian exchange bought its way out of many shareholder agreements. Simultaneously, some shareholders never received a penny of their money back.

“There were few shareholders left by the time we exited in early 2016, and the shareholder lists publicly available do not appear to be up-to-date. Three shareholders have recently told me that they have never received notice of any annual general meetings and didn’t receive so much as a $1 dividend from QuadrigaCX in three years, despite how profitable it appears to have been.”

To take the firm completely private, the CEO eliminated everyone that was in relation to compliance or regulatory oversight. This way, the company moved on from being as regulated as possible to lawlessness, in the regulatory sense according to Duhaime.

“From that moment onwards, Mr. Cotten solely took over QuadrigaCX and operated the exchange as if it had no investors, no shareholders, no regulatory agencies and no law that applied to it – no corporate law, no securities law, no anti-money-laundering law and no contract law. I don’t know why Mr. Cotten decided to eschew regulatory law but I never spoke with him after that day.”

According to previous reports, the CEO himself controlled a big portion of the exchange’s virtual wallets. This was the final straw in the security model that allowed an alleged massive loss of funds following his death in December last year. More than $250 million (CAD) in outstanding claims by more than a hundred thousand people exist against Quadriga and its former lawyer wonders why certain legal actions have yet to be taken to ensure that whatever funds left are actually protected for the future.

“I don’t know if there is $137 million parked in a few wallets; I don’t know why the bitcoin addresses that were supposed to be holding $92.3 million turned up empty; I don’t know why the wallet address holding $44.7 million of other cryptos can’t be disclosed; I don’t know why no law firm has applied for a Mareva injunction to preserve assets; I don’t know why the litigation is in Nova Scotia when British Columbia Courts have jurisdiction and the witnesses and evidence are in British Columbia”

Duhaime has said that she was reluctant to author a blog post on the subject of Quadriga CX but has the hope that doing so will raise awareness around the need for improved regulations on the exchange.
In the end, Quadriga’s story and other centralized exchanges that have all suddenly been unable to service withdrawals shouldn’t be taken lightly. Furthermore it will highlight the need for decentralised exchanges.
Source: Crypto Daily