Bitfinex Premium on Bitcoin Reminiscent of Mt. Gox’s “Good Old Days”: Vinny Lingham

Vinny Lingham, a leading trade analyst recently suggested a very ominous theory about the ‘Bitfinex Premium’ being charges for over a week now. It refers to the surcharge on Bitcoin being explicitly charged on the Exchange.
The ‘Bitfinex Premium‘ at 12: 40 Hours UTC on 4th May 2019 is around $320 w.r.t Coinbase and Bitmex. It is about 5% of the weighted average of the price of Bitcoin on Exchanges. While this has attributed to the rise in the price of Bitcoin [BTC], it makes traders apprehensive due to its consistent abnormality.
BTC/USD 1-Day chart on Bitfinex and Coinbase (TradingView)
It signified that the demand for Bitcoin on Bitfinex is exceeding sell orders will w.r.t. FIAT and other altcoins. Moreover, the arbitrage traders have not been able to sweep the profits from the difference, or they choose to abstain from the Exchange altogether.
Reminisce of the Issue at Mt. Gox?
Either way, while the price is in the green, the abnormality reminisce of one the biggest and most popular Exchange Theft in the history: Mt. Gox.
A lot has changed since then, like significant trading volume, better price discovery methods, and a more significant number of institutions and researchers including Governments that are tracking the blockchain and its price. Nevertheless, in accordance with the economic principle of ‘law of one price‘ of freely traded goods, it raises concerns about the situation at the particular Exchange.
Vinny Lingham, a leading chart analyst, and cryptocurrency trader reiterated this fact in a recent tweet. He said,
“Who remembers when a market premium started forming on Mt. Gox? Ahh, the good old days… “
The tweet is riddled with an ominous irony. The “good old days” Lingham is suggesting points to the early days in Bitcoin from July 2013-January 2014. During the time, the premium at Mt. Gox ranged above 10%. During that time, the price was letting a good story. However, it slowly built up to the destructive crash of 2014; the bear market extended for a year post the event.
Bitcoin Price from July 2013 to February 2014 (CoinMarketCap)
Nevertheless, the percentage of trading at Mt. Gox at that time was considerably higher than Bitfinex’s trade volume when compared to other Exchanges presently. However, the premium issue must be resolved soonly before the market is misled toward a disaster once again.
What do you think are some of the other views and theories about the Bitfinex Premium? Please share your views with us. 
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Source: CoinGape

Bitcoin [BTC]: CoinLab’s Mt. Gox civil rehabilitation claims are ‘utterly shameless’, says WizSec Research

Mt. Gox, the defunct Bitcoin exchange, has been making headlines with news pertaining to its civil rehabilitation proceedings. Now, the exchange is back in the spotlight after WizSec Bitcoin Research released a report on the entire Mt. Gox – CoinLab “behind the scene” story.
The report titled ‘CoinLab v Mt. Gox: The imaginarium of Peter Vessenes,’ gives insight into the $16 billion claims made by the firm. Kim Nilsson, a researcher at WizSec, “acquired a copy of the last round of petitions to the Tokyo District Court”. The report revealed that the civil rehabilitation trustee, Nobuaki Kobayashi, decided to delay proceedings due to the ongoing case with CoinLab, stating that it was “the elephant in the room causing this delay”.
The report stated that CoinLab “steadfastly refused” to lower the amount claimed, adding that it was “now almost two and a half times as large as the sum total of all approved claims combined”.  It further stated,
“Basically, if you had bitcoin in MtGox you’ve already lost 80%+ of your money, and now CoinLab is doing their best to finish the job.”
Claims made by CoinLab | Source: WizSec
Apart from these claims, CoinLab also demanded that Mt. Gox cover its legal fees. However, this was outrightly dismissed by the Trustee as he asserted that the claims should be “assessed as 0 JPY” and that the firm should cover its own legal fees.
Further, the Trustee also considered the claims and the calculation behind the claims to be “impossible” and “completely groundless”. More so, according to the calculation made by the Trustee, CoinLab’s claims close down to $6,100,000 [Six million, one hundred thousand], “suggesting that CoinLab’s figure for the same time period was 40 times too large”.
CoinLab claim calculation | Source: WizSec
The report concluded,
“To continue to argue this frivolous claim at the direct expense of tens of thousands of people who actually lost their own money is utterly shameless. Peter Vessenes and anyone currently associated with CoinLab are blatantly trying to rob honest creditors and deserve to be publicly shamed until they do the right thing and drop this claim.”
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Source: AMB Crypto

Bitcoin [BTC]: experts expect 20% of exchanges to be compromised to a hack by 2020, says report

Bitcoin [BTC], the largest cryptocurrency by market cap, saw a drastic price drop through-out 2018, with the coin even losing over 80 percent of its value since its all-time high. A report released by Adamant Capital listed a few major catalysts that could influence a price drop of the largest coin.
The first reason stated in the report was the hack of exchanges or its failures. The report stated that “experts” were concerned about Bitcoin exchanges as they expect around 20% of the exchanges being compromised to a hack before summer 2020. The report said,
“While cryptocurrency custodians were perceived to be the least risky, our experts still estimated that before the summer of 2020 an industry wide 10-15% of custodians would suffer from loss of funds due to a hack”
Source: Adamant Capital
The second reason for the slump was stated to be a macro-economic downturn. The report stated that Bitcoin has “relatively” high liquidity, which could be used as a proxy for cash if equity or bond markets were to drop. It said,
“This could lead to a situation similar to the 2008 paradox of the gold price declining by over 30% coinciding with a record high demand for coins and bars […] we don’t see a financial crisis as a long term headwind for Bitcoin, on the contrary […] we believe that Bitcoin is of compelling value for investors looking to diversify their portfolios […]”
The report further listed Bitcoin miners and Mt.Gox to also be one of the main catalysts. Mt. Gox, a defunct Bitcoin exchange that controlled over 70% of Bitcoin transactions, was still undergoing its civil rehabilitation proceedings. The report stated that a significant amount of the Bitcoin that would be redistributed by Mt. Gox to creditors could be sold, thereby influencing the price of the coin. It added, “Finally, a regulatory crackdown should be considered a permanent risk factor, given the disruptive nature of Bitcoin.”
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Source: AMB Crypto

Top Trending Cryptocurrency News of the Week: Coinbase and Mt. Gox Among Major Newsmakers

Key highlights

Ex-Mt Gox Head Will Serve No More In Jail
Hong Kong’s Gatecoin exchange shuts down
Central Bank of Russia Plans on Limiting Cryptocurrency Trading
Basel Committee Issues Warning to Banks for Cryptocurrency Risks
Coinbase Custody Unveils New Cold Storage Cryptocurrency Trades

Ex-Mt Gox Head Will Serve No More In Jail
Well, another turn in the Mt Gox exchange hack case. A court in Tokyo has handed Mark Karpelès, the former chief executive of the collapsed Bitcoin exchange Mt. Gox, A 2.5 years of the prison sentence on Friday. This means Mark Karpelès will not be serving any additional time in the jail if he remains on good behavior. This verdict bought an end to more than a 5-year ordeal for Mr. Karpelès who was charged for falsifying data
Hong Kong’s Gatecoin exchange shuts down
Gatecoin, the Hong Kong-based cryptocurrency, has finally announced that it will be calling curtains to its operations after a court order and the bank account freeze. Last week, the court had granted a winding-up order against the company. Gatecoin stated that it will assist in the liquidation process in order to expedite the realization of its assets to the creditors.
Central Bank of Russia Plans on Limiting Cryptocurrency Trading
Apart from standing by innovation, the blockchain, and cryptocurrency, the Russian regulators especially the country’s central bank has planned to put a yearly limit on so-called “unqualified investors” who are willing and able to buy cryptocurrencies as reported by the media house RBC’s. The central bank also plans to change the existing draft digital currency bill, known as ‘On Digital Financial Assets,’ that passed the second reading in parliament – State Duma.
Basel Committee Issues Warning to Banks for Cryptocurrency Risks
Another news coming from the world banking authority, the Basel committee, which after citing the growth of cryptocurrencies as a risk to banks, has issued a warning to banks around the globe. Having released a statement this week, The Basel committee which is the part of Bank for International Settlement (BIS), released a statement stating that, the important risks the banks will be facing which were listed by a Swizz based think tank includes credit and market risks, money laundering risk, liquidity risk, terrorist financing risk, operational risk, and legal and reputational risks.
Coinbase Custody Unveils New Cold Storage Cryptocurrency Trades
Coinbase is back in news and this time for its Coinbase Custody service. According to the latest announcement, Coinbase Custody service is now directly integrated with the company’s newly launched OTC desk. Custody clients will be able to complete trades directly from cold storage, the company said in its release, adding that it was a service many of its users requested.
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Source: CoinGape

Mark Karpeles is responsible for failing to protect funds, says Bitcoin Cash’s Roger Ver

Roger Ver, the CEO of Bitcoin.com and a well-known Bitcoin Cash proponent, recently spoke about Mark Karpeles. Karpeles, the former CEO of Mt. Gox – the infamous Bitcoin exchange, made headlines this week after he received a suspended sentence from the Tokyo District Court.
Karpeles was found guilty of altering numbers in the firm’s financial records and was acquitted of all other charges, including embezzlement of funds. The verdict came as a relief for the CEO as he would have faced up to ten years in prison if the alleged embezzlement charges had been proven. He was charged with the embezzlement of around $3 million in customer funds.
The Tokyo District Court ruled that “he had acted without ill intent,” reported Bloomberg. Additionally, he was given a two-and-a-half year suspended sentence, which he will have to serve if he committed another crime within the next four years.
The court also stated,
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement […] there is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts.”
Roger Ver, in an interview with Decrypt, stated that Karpeles was “responsible for not doing a good job protecting the funds from the hackers”. Nevertheless, the Bitcoin Cash proponent also clarified that he held the hackers responsible for stealing the funds.
Mt. Gox was once the biggest Bitcoin exchange platform in the world, controlling over 70% of all BTC transactions. However, the exchange fell victim to a hack, and subsequently lost control of over 7% of all Bitcoins in circulation. This resulted in the platform shutting down its operations and declaring bankruptcy.
Presently, Mt. Gox is undergoing a civil rehabilitation program under which victims of the platform will be repaid their losses with the Bitcoins that were discovered by Karpeles in cold wallets. Ver is noted to be one of these victims, holding “life-changing amounts of Bitcoins” on the exchange, reported Decrypt.
Further, with respect to Karpeles’s suspended prison sentence, Ver said that it was only for “those who are physically dangerous towards others”. He also suggested that people should be punished after they were convicted, not before, in light of Karpeles being interrogated for 50 days in a row.
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Source: AMB Crypto

Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

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Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term
Mark Karpeles, who presided over the dramatic 2014 collapse of the world’s biggest cryptocurrency exchange Mt. Gox, was found guilty of tampering with financial records but will likely avoid jail time after receiving a suspended sentence.
Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

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Source: CoinSpeaker

Mt. Gox: Tokyo Court acquits Mark Karpeles on embezzlement charges; finds him guilty of electronic data tampering

Mark Karpeles, owner and CEO of the now-defunct Bitcoin exchange, Mt. Gox, has been convicted of falsifying electronic data, but was acquitted of embezzlement charges by Tokyo District Court on 15 March.
The French businessman was found guilty on charges of record tampering, and was subsequently granted a suspended jail sentence for two and a half years. This means that Karpeles wouldn’t have to serve time in prison if he does not commit any crime for a period of four years. Additionally, the court also ordered Mark Karpeles to compensate for trial costs.
Yuji Nakamura, a Bloomberg tech reporter, summarized the Tokyo District Court’s verdict on Karpeles,
“In summary, the court found that the way he ran Mt. Gox was a total mess and that he tampered with records to hide the fact it was missing a lot of Bitcoin, but he did not do it for personal gain or have ill intent.”
According to his translations, the court stated that the use of tampered data involving a large sum of funds caused severe damage to the customers of Mt. Gox. However, there was no criminal evidence of the serious allegations Karpeles was charged with. He also stated that the defendant’s criminal responsibility cannot be undermined.
Tokyo prosecutors had previously accused Karpeles on multiple accounts of fraud, including embezzlement and aggravated breach of trust, demanding a 10-year prison term for him. Maintaining his innocence since the very beginning, the CEO of the infamous exchange said that he was happy to be found not guilty of the serious charges of embezzlement and breach of trust.
The Mt. Gox fiasco accounted for a loss of 850k BTC, out of which only 200k coins have been recovered. The breach resulted in a loss of over 7% of the entire Bitcoin circulation in early 2014. Later, the company filed for bankruptcy and ceased its operations.
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Source: AMB Crypto

Mt. Gox Case Verdict: CEO Karpeles Will Not Serve Jail Time

Mt. Gox CEO, Mark Karpeles was found ‘not guilty’ of the fund embezzlement charges imposed on him. However, he was found guilty of submitting falsified records to the Japanese District Court.
The Tokyo District Court has passed a 2-year 6-month sentence suspended for 4 years. Hence, Karpeles has been laid off with a warning and a probation period of four years. If he repeats his felony or is found guilty in the future again he would have to serve 2.5 years in prison after the judge’s discretion.
Proceedings of the Case And Final Statements
Karpeles’ chief lawyer Nobuyasu Ogata has had to clear the doubts around cryptocurrencies and Bitcoin in order to make Karpeles’ stand. He argued that Karpeles was actually ‘the victim’ of the Mt. Gox heist in February 2014.
The Japanese District Court has acquitted Karpeles of ‘more serious crimes’ that he was allegedly accused of: Fund Embezzlement and Fraud. It was noted that Karpeles was humble and listened to the verdict humbly.
Acquittals are rare in Japanese courts, where the conviction rate is higher than 99 percent. Karpeles also noted that, he was interrogated for months without a lawyer and bullied into signing a confession, a “nightmare” process during which he lost 77 pounds over 11 months.
Karpeles swore that he never utilized any customer fund and Mt. Gox was a security breach, for which he is deeply apologetic.
The post Mt. Gox Case Verdict: CEO Karpeles Will Not Serve Jail Time appeared first on Coingape.
Source: CoinGape

6500000 Bitcoins Lost Forever, Mt. Gox Owner to Meet His Fate in Court on Friday March 15

The infamous Mt. Gox saga will finally meet an end in the Japanese Courts on 15th March 2019. The owner of the exchange, French Mark Kerpeles, 33, is accused of ‘faking digital data and embezzling millions of dollars ($3 million).’; If found guilty he will be heavily penalized and might serve a sentence of ten years. Here is a small recap of the entire episode:
2014 Mt. Gox Shutdown
In February 2014 Mt. Gox had stopped withdrawals and trading on its exchange reportedly due to maintenance issues. However, on 28th February 2014, it filed for bankruptcy claiming that the most significant exchange of the world at the time had been hacked of 850000 Bitcoins.
The Bitcoin market soon plummeted, and investors lost around $425 million worth of Bitcoins at the time. The case was brought to light at the Japanese Court, and Mark Karpeles, the owner of the exchange, was held accountable.
In March 2014, a public release on the website announced that they had recovered 200000 Bitcoin from the cold storage wallets of Mt. Gox Exchange. The funds were held in ‘trust’ by the Japanese Authorities for credit protection.
2015 Case Proceedings: 650000 Bitcoins Lost Forever?
After the revelation of the 200,000 Bitcoins, the investigation reached a dead-end due to lack of KYC and ALM compliances at the time.
Mark Karlepes was later arrested in Japan in August 2015. Kerpeles is alleged to have manipulated the exchange data for years during the running of the exchange embezzling almost $3 million. He served one year of imprisonment until July 2016 when before he was released on bail.
This is a very small amount with respect to the value of 6500000 Bitcoins still reported missing at the exchange. Nevertheless, if found guilty, he would be penalized heavily.
Satoshi Mihira, chief attorney at Mizuho Chuo law firm, said: “If it was an outside hacker who stole the currency, it’s a problem. But if he stole even part of the money, it would be embezzlement.”
How Much Did The Investors Actually Lose?
The proceedings against Mark Karpeles could add some funds to total credit amount, however, the illicit owner of 6500000 Bitcoins from Mt. Gox still looms at large.
Nevertheless, all is not lost for its investors. In June 2018, when the price of Bitcoin was $6200, the Tokyo District Court had initiated a credit reimbursement program known as civil rehabilitation. Funds to the tune of 170,000 each of Bitcoins and its hard fork Bitcoin Cash, worth roughly $1.2 billion were credited back its ex-customers and debtors. The amount is still almost three times the amount that was reportedly lost during the heist.

“Enormous assets…will be returned to creditors of Mt. Gox,” Shin Fukuoka, a leading attorney, and partner at Japan’s Nishimura & Asahi law firm, he also wrote in a statement. “This is the creditors’ victory.”

First creditors meeting since Civil Rehabilitation completed today for #MtGox – next one will be on March 20th 2019. Remember, deadline for filing Civil Rehabilitation claims is on October 22nd 2018, so if you have a claim against MtGox, remember to file on time!
— Mark Karpelès (@MagicalTux) September 26, 2018

Prosecutors’ Claims Against Kerpeles
The prosecutors against have filled for a 10-year sentence and reimbursements to creditors from his personal assets. According to the prosecutor, they have reports of extravagant spending and investments by Mark Karpeles which might indicate that the funds were ill-founded.
They have found considerable investment in a 3D-printing software business that had nothing to do with the exchange. Furthermore, a $54,000 worth canopy bed, thousands of dollars on overseas trips for his distanced wife,  and spent thousands of dollars on living a luxurious life (reportedly $120,000 annually).
Karpeles’ Defence
The owner of the disputed exchange has been active on social media ever since his release. Although he has been accused of fraud, and the investors and ‘Twitterati’ have bad mouthed Karpeles; He continues to maintain a non-guilty stand.
“Most people will not believe what I say. The only solution I have is to actually find the real culprits,” he told reporters after the hearing.”
 

When you lose an argument, what better way to score a win than to attack the person themselves rather than the argument. There’s a word for that thankfully: argumentum ad hominem. Look it up.https://t.co/jA1Zp4Atrh
— Mark Karpelès (@MagicalTux) February 10, 2019

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Source: CoinGape

Bitcoin Jesus: Don’t Delete Coinbase, No Other Firm Does More for Crypto

Roger Ver is among the most polarizing characters in the crypto industry. He often goes against the grain, even if it earns him notoriety. Such is the case with recent comments made by Ver, defending San Francisco-based Coinbase in the face of the ongoing #DeleteCoinbase boycott.
Few people have done more to further the adoption of Bitcoin and cryptocurrencies than Ver, so while his defense of Coinbase carries much weight, he’s been wrong in the past in his support of cryptocurrency exchanges and it’s cost crypto investors dearly.
Roger Ver: Coinbase Pushes Crypto Adoption, Don’t Support #DeleteCoinbase
This past week, a scandal at Coinbase over the recent acquisition of Neutrino has led to an angry mob situation in the cryptocurrency world. As part of the acquisition, Coinbase absorbed employees from Neutrino that were tied to a controversial software company called Hacking Team, that was responsible for providing governments, law enforcement agencies, and dictator regimes with tools to surveil individuals.
The Hacking Team’s work goes against much of the values cryptocurrencies were built upon, such as privacy, and removing the control governments have over individuals, which called Coinbase’s integrity and commitment to the space into question. The community’s distaste and unrest quickly turned into taking action, launching a ferocious social media campaign dubbed #DeleteCoinbase, where crypto investors are encouraged to ditch Coinbase for other alternatives across the market.
Related Reading | Why Did Major Crypto Exchange Coinbase Suddenly Add XRP?
However, Bitcoin.com CEO Roger Ver has come to the defense of Coinbase, suggesting that few other companies can claim to have done as much to push crypto adoption forward as the San Francisco-based crypto giant.

Coinbase has done more to drive crypto currency adoption than just about any other company. We should be grateful despite a few poor decisions along the way. Don’t #DeleteCoinbase
— Roger Ver (@rogerkver) March 7, 2019

Ver, as an investor, has done more to promote cryptocurrency adoption than any other individual. It’s earned himself the nickname Bitcoin Jesus due to his early evangelism in the space. His defense of Coinbase is likely to hold a lot of weight, however, Ver has been wrong about defending crypto exchanges in the past.
Roger Ver Famously Claimed Mt. Gox Was Solvent, Is His Defense of Coinbase an Omen?
While Ver’s support of Coinbase makes sense, his defense of a now infamous cryptocurrency exchange caused a lot of investors much loss and grief.
Ver is quoted as claiming the now defunct crypto exchange Mt. Gox, which was among the first exchanges to bring Bitcoin to the masses, was solvent prior to the exchange’s eventual collapse only months after the comments were made.
Related Reading | Roger Ver’s Bitcoin.com is Reportedly Under Government-Sponsored Attack
Months before it was revealed that Mt. Gox had lost 850,000 BTC of its customer’s funds, Ver filmed a video defending the exchange. Ultimately, Mt. Gox went bankrupt and the case has since moved to civil rehabilitation in hopes of returning some of the lost funds to early Bitcoin investors.
Ver and his high school friend Jesse Powell, who is also co-founder of crypto exchange Kraken, had gotten involved with Mt. Gox in 2011 during the Bitcoin bear market. Calling Ver’s defense of Coinbase further into question, is his long-time friend’s negative comments about Coinbase.

While Powell and Kraken are in direct competition with Coinbase, and are likely using the moment of weakness to capitalize, there’s no denying that there’s validity in Coinbase appearing to be actively destroying the brand equity they’ve worked so hard to build. 
Featured Image from Shutterstock
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Source: New feedNewsBTC.com

Winklevoss’s Twin Conviction Towards Bitcoin Becomes Stronger Than Ever

Billionaire Bitcoin Investors and founders of Gemini Trust, Tyler and Cameron Winklevoss, recently addressed the on-going issues related to ‘protection of cryptocurrency wallets’ and ‘delayed regulations.’
‘Carcasses on the road of Crypto’
The security, feasibility of access and regulatory approval around an asset class, determines the FUD (Fear, Uncertainty, and doubt) characteristics around the pattern. Bitcoin was conceived to address the problem of centralized banking which holds controls over the funds of their customers.
However, ever since the Mt. Gox hacks in2011, it became apparent that the exchange which holds the private key for their customers are no different than the banks which act as custodians of their user’s funds. Recently, eight years after the hack, and numerous frauds and Ponzi schemes the demons of centralized exchange have come to surface with the QuadrigaCX issue.
The sudden death of the CEO of the Canadian Exchange, who was the sole holder of the private keys of the exchange’s cold wallet has unfortunately locked the funds of thousands of users. The total amount of the funds secured in cold wallets is approx $190 million.
“There are a lot of carcasses on the road of crypto that we’ve seen and learned from,” Cameron Winklevoss said Friday at the South by Southwest conference in Austin, Texas. “At the end of the day it’s really a trust problem. You need some kind of regulation to promote positive outcomes.”

“With a #crypto address and a smartphone, all of a sudden you are in the system. We are really just trying to extend the financial system, so you can send dollars anywhere in the world.” Our President Cameron @winklevoss on reaching the 1 billion people who unbanked #SXSW2019 https://t.co/VZk9fxwayQ
— Gemini (@Gemini) March 9, 2019

Not Deterred from their Original Goal 
Winklevoss Twins support cryptocurrency and eventually found the Gemini Trust to provide an efficient payment system to the 1 billion ‘non-banked’ people of the world.
“With a crypto address and a smartphone, all of a sudden you are in the system,” he said. “We are really just trying to extend the financial system, so you can send dollars anywhere in the world.”
However, the systems around the blockchain and cryptocurrencies which are the end providers of access to Blockchain including Bitcoin must be diligently designed to address unforeseen circumstances as well. The community has suggested that multi-signature wallets and personalized education around public and private keys is the best way to go.
The twins also reaffirmed their conviction towards the revolutionary economic system,
“You want to have a couple of layers of checks and balances,” Tyler Winklevoss said. “We are here for the long haul.”
The post Winklevoss’s Twin Conviction Towards Bitcoin Becomes Stronger Than Ever appeared first on Coingape.
Source: CoinGape

Mt. Gox: Exchange’s key challenge was getting fiat, says Stellar’s Jed McCaleb

Mt. Gox, a Bitcoin exchange platform, continues to linger in the minds of several investors and traders. This is mainly because of the exchange’s part in Bitcoin’s adoption and the hack that led to its doom.
Originally, it went by the name, ‘Magic: The Online Gathering Exchange,’ a platform for trading ‘Magic: The Gathering’ cards. This platform was soon re-modified in order to enable the trade of Bitcoin, the largest cryptocurrency by market cap and also the very first coin in the space. Soon after this, the exchange rose to popularity as it enabled Bitcoin to US Dollar trade.
Moreover, Bitcoin also witnessed one of its major bull runs under the aegis of Mt. Gox. However, Bitcoin’s fall was also under the aegis of the exchange platform. In the year of 2014, the exchange platform lost over 7% of the total Bitcoins in circulation due to a hack.
750,000 of the stolen BTCs were owned by customers of the platform while 100,000 BTCs were owned by the exchange platform. The total worth of the hack at that point in time was approximately around $475 million, making it the biggest ever hack to take place in the cryptocurrency space.
Currently, the exchange platform is undergoing a rehabilitation program, in an attempt to give Bitcoins back to their creditors. Apart from this, Brock Pierce, a former director of Bitcoin Foundation, and a venture capitalist, has begun a project pertaining to Mt. Gox, known as Gox Rising, claiming that his firm has acquired all the rights of Mt. Gox from Mark Karpeles. However, Karpeles has shot down these claims on his Twitter handle.
Recently, Jed McCaleb, the co-founder of Ripple and the CTO of Stellar, spoke about the infamous exchange platform, in an interview with WhatBitcoinDid. Apart from being a part of these leading cryptocurrency projects, McCaleb was also a key contributor to the rise of Mt. Gox and the platform was one of Jed McCaleb’s early projects in the cryptocurrency space.
During the interview, McCaleb elucidated on the key-challenges faced by the exchange in its early days. He said,
“One main like challenge with exchanges then and still today is just getting fiat, you know, on and off the exchange. Like, that’s kind of like, the roadblock for like how successful you can be and like how much money people can put through there, it’s just all like how much fiat you can deposit and withdraw.”
He further said,
“Like, that’s by far the main challenge and and that’s not a very fun one because you’re you’re dealing with like APIs of banks that are like old and crappy and like and you know or just like random like integrations to different payment networks and something that is just not very fun work”
This was followed with McCaleb speaking about the solution the platform came up with in order to tackle the problem. He said,
“We used PayPal Liberty Reserve I can I think there’s another one I think we would take bank wires yeah I think those are the three ways”
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Source: AMB Crypto

Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

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Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

Brock Pierce wants Mt. Gox creditors to receive 100 percent of whatever they’re owed. He’s also fought with former Mt Gox CEO and majority shareholder Mark Karpelès on Twitter about the feasibility of his plan and whether it’s even legal.

Brock Pierce Set to Make Mt. Gox Great Again, and Here’s How

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Source: CoinSpeaker

MtGox Currently Controls Bigger Bitcoin Market share than the Gold Reserves of the Swiss Central Bank

Bitcoin has been characterized as the digital gold that according to some bitcoin proponents is better at being gold than gold itself. Bitcoin is also predicted to surpass the $8 trillion market cap of gold and emerge as the store of value.
Now, Tuur Demeester, the Founding partner at Adamant Capital, has calculated the Bitcoin circulating supply in equivalence of Central banks’ gold reserves and shared the following data.

“The current value of Dutch Central Bank gold is about $25 billion, so in order to buy 69k BTC (the mined Bitcoin equivalent of the Dutch gold reserve) it would only need to sell 1% of its gold, i.e. 492 gold bars,” shared Demeester.
He further did a comparison of the Bitcoin still left with Mt Gox with that of the central banks’ gold reserves.
“Allows for fun comparisons, e.g.: The MtGox Trustee currently controls 137,891 BTC, which is bigger in terms of market share than the gold reserves of the Swiss central bank.”
Currently, a group of Mt. Gox creditors has banded together to create a movement called “GoxRising” with the goal of reviving the exchange and present a detailed Civil Rehabilitation plan.
The movement has been proposed by Brock Pierce who reportedly bought 12 percent stake owned by Jed McCaleb, founder of Mt. Gox for 1 BTC. “We have the rise, the fall, and it’s been in liquidation and bankruptcy in Japan for over five years. But the story is not over,” Pierce had been quoted as saying,
“Like Game of Thrones, the last season of Mt. Gox hasn’t been written. What kind of ending do we want to make for it? I’m a Joseph Campbell fan, so I’m obviously going to go with a hero’s journey, with a rise and a fall, and then a rise from the ashes like a phoenix…”
Reportedly, Pierce has no interest in the past gains of Mt. Gox but wants a happy ending of this story. Pierce also wish to start a new chapter by relaunching Mt. Gox. He further plans to offer its 20,000 creditors a stake in the future of the company.
The post MtGox Currently Controls Bigger Bitcoin Market share than the Gold Reserves of the Swiss Central Bank appeared first on Coingape.
Source: CoinGape

Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

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Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

Pierce charts the new plans of repaying the Mt. Gox victims through the creation of a new company under the same brand and its native cryptocurrency Gox Coin.

Famous VC Brock Pierce Unveils His Unbelievable Plan to Remedy Notorious Mt. Gox Theft

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