roadrunner

A crypto forensic analysis reveals that a French donor sent over $500,000 worth of bitcoin (BTC) to far-right activists in the United States. The half-million dollars went to the groups that took part in the pro-Trump riots in the U.S. Capitol. Alt-Right Personalities and Websites Are Included on the List of Recipients According to Chainalysis, the unnamed donor sent 28.15 BTC (worth $522,000 at the transfer time) on Dec. 6, 2020, to 22 separate addresses in a single transaction. Per the report, many of those wallets belong to personalities tied to far-right activists in the U.S. Yahoo News detailed that Vdare (anti-immigration organization), the Daily Stormer (right-wing website), and Nick Fuentes were among the crypto donation recipients. Alt-right streamer Ethan Ralph is also on the list that Chainalysis published regarding the half a million dollar donation. The blockchain analytics firm clarified that there is no evidence yet on Fuentes’ participation in the Capitol’s riots. However, it quoted previous statements from him asking people to protest Congressional certification of Joe Biden’s victory. But Chainalysis still highlighted that a BTC donation worth over $250,000 sent on Dec. 8, 2020, is by far the largest crypto donation Fuentes has ever received. Donor Might Have Committed Suicide After Arranging the BTC Payments Regarding the French donor’s identity, there is information that the wallet used to arrange the payments has been active since 2013. The blockchain analytics firm suggests he could be a “relatively early adopter of bitcoin whose holdings have grown in value significantly.” One of the BTC addresses associated with the donor’s wallet is registered on Nameid — a service that allows users to associate their online identity with their BTC address. Chainalysis found that the crypto donor is a French computer programmer after searching through his email address. After he sent the donations, he published what seems to be a suicide note on a personal blog. The report, which indicates the motivation behind his donations, reads: He mentions that he has ‘bequeathed [his] fortune to certain causes and certain people,’ and cites several alt-right talking points in his analysis of the world today. For instance, he states his belief that ‘Western civilization is declining,’ and claims that Westerners are encouraged to hate their ‘ancestors and heritage.’ According to Yahoo News, Federal authorities and law enforcement agencies are also investigating the source of funds. What do you think about the findings by Chainalysis? Let us know in the comments section below. View the full article

The Venezuelan president, Nicolás Maduro, has claimed that 2021 will be the year of the state-backed petro (PTR) token. He also promised to boost a “100% national digital economy” agenda through a “complete digitalization process.” 77% of Trade Transactions in Venezuela Are Made via Digital Solutions in Bolivar During an annual speech at the National Assembly, Maduro talked about a “revival” for the petro, a cryptocurrency that some analysts have not seen any strong potentials in, at least in terms of adoption. However, the Venezuelan president believes his economy’s agenda should boost the national crypto market and its related remittance service, Patria. He explained: The revival of the use of petro, of all cryptocurrency systems, the use of blockchain technologies, the development of the Patria system, and the generation of new applications will set the tone for 2021. Over the year, Maduro plans to strengthen the usage of contactless payment solutions to ride-off from cash payments. He added: This year, we are going to facilitate the use of means of payment in national currency for public transport and all businesses, through payment systems that do not need an online connection. The president revealed that 77% of trade transactions in the country are made via digital solutions in bolivar and 20% in cash. Moreover, he claimed that the country’s crypto-remittance platform has 21.2 million people registered as of press time. Maduro Promises to Strengthen Blockchain Development in 2021 Maduro also hinted that he will strengthen blockchain industry development in Venezuela as part of its 2021 agenda, noting: National and global cryptocurrency systems will set the tone for 2021, as will the use of blockchain technology in different sectors … and the development of new applications that will provide solutions to specific problems. On Dec. 21, 2020, news.Bitcoin.com reported words from the president of the National Association of Cryptocurrencies of Venezuela (Asonacrip), who praised the bull run seen in bitcoin’s price that month. Jose Ángel Álvarez believes such rally helps the “usability of a very novel crypto asset,” including the petro. What do you think about Maduro’s petro promises? Let us know in the comments section below. View the full article

During the last 12 months, Ethereum-based decentralized finance (defi) solutions and decentralized exchange (dex) platforms have been very popular. Dex applications, in particular, have seen massive demand and during the last 30 days, dex trade volumes have reached $39 billion in swaps. However, one of the biggest issues confronting dex users continues to be the enormous fees associated with interacting with platforms like Uniswap and other dex platforms. Ethereum’s Decentralized Exchange Platforms See Record 30 Day Trade Volumes Dex applications like Uniswap, 1inch, Sushiswap, 0x, Matcha, Kyber, and others have been very popular platforms during the last year. The defi market aggregator defipulse.com shows that there’s over $22 billion in value locked into defi platforms today. A considerable amount of this locked ether value is also represented by dex applications and the growing user base. On January 14, 2021, stats from Dune Analytics shows that during the last month, dex trade volumes gathered $39.86 billion. Dex applications have seen $12 billion in swaps during the last seven days, and the top dex application in terms of volume is Uniswap. The aggregate total of all the decentralized exchanges’ trailing 30-day volume growth has spiked by 103% this month. Uniswap’s trade volume is followed by Sushiswap, Curve, 0x, and Balancer respectively. Every week, Uniswap and Sushiswap are seeing billions in global trade volume and Uniswap is the fourth largest defi application, according to current stats with around $2.77 billion total value locked (TVL). However, even though decentralized exchanges have seen large TVL balances and significant trade volume, the crypto community has been flabbergasted by the fees associated with Ethereum-based dex applications. Crypto Users Complain About Massive Dex Fees For instance, the popular Bitcoin researcher and author, Hasu, recently said that some “defi projects produce nearly as much cash flows from fees as the entire Bitcoin network does.” During the last two weeks, a great number of crypto proponents have been complaining about the massively sized fees associated with dex platforms like Uniswap and Sushiswap. Bitcoin proponent Brad Mills complains about the dex fees stemming from the Ethereum-based platform Uniswap. Moreover, in some cases, people have had to eat the associated onchain trading fee, but the swap ultimately fails. On January 7, 2021, the bitcoin pundit Brad Mills tweeted about paying a $120 dex trading fee. “Just a casual $120 fee to use Uniswap on Ethereum,” Mills said. “Defi is the future of finance for the unbanked,” he added sarcastically. A few hours ago, one individual wrote: “I’m gonna go cry now over the Uniswap fees I just paid.” In another tweet on Friday, one user explained that the “fees on Uniswap are insane— They need to figure out a way to curb this or Uniswap will plateau as a decentralized exchange,” he added while sharing a picture of the Uniswap fees on Friday. The screenshot shows that the slowest transaction will cost $40 in ether fees, and that transaction should settle in 12 minutes. A medium-speed transaction that will settle in a single minute, costs over $58 dollars to interact with Uniswap. Moreover, the fastest confirmation time of under 30 seconds will set a trader back $100 just for the fee. “Oh my god these Uniswap fees are insane…,” another person tweeted on Friday afternoon. Another person complained and said they wanted to trade but dex fees are too high. “I wanna start trading on Uniswap, but I’m not rich yet so….fees. Any alternatives?” the person asked. Of course, throughout all the discussions about the high dex fees, a great number of crypto community members shilled their own favorite blockchain with claims of lower fees. Despite Ethereum’s colossal lead in the decentralized finance (defi) space, many people believe the network will falter if fees are not improved in the near future. One person even compared the Ethereum network to BTC’s fee and transaction congestion issues and referred to both network’s as antiquated tech. “ETH is the Bitcoin of Defi,” explained the Twitter account dubbed ‘Green Eggs-n-Sam.’ “Old tech, failed to scale >10 yrs., fees [are a] fu**ing joke, flawed incentives, running on fumes of first-mover advantage, practically unusable w/o a centralized layer 2, all the while, superior solutions, and off-ramps are appearing left and right.” The crypto proponent’s harsh criticism actually was a fairly popular tweet with 165 likes at the time of publication. What do you think about the recent dex trade volumes and the massive fees associated with dex application swaps? Let us know what you think about this subject in the comments section below. View the full article

On January 14, Ian Smith, the co-owner of the Atilis Gym in New Jersey appeared on Fox News with the news anchor, Tucker Carlson, and discussed his battle with the state of New Jersey’s coronavirus lockdown orders. Smith and his business partner have defied the state’s lockdown orders and remained open for months. The Bellmawr establishment has been fined $15k per day, as the company does not adhere to enforcing Covid-19 protocols. On Wednesday evening the state of New Jersey allegedly took action and seized $173,613 from the gym owner’s bank account. Atilis Gym Owner Claims the State of New Jersey Seized $173K from His Bank Account The co-owner of the Bellmawr, New Jersey (NJ) establishment Atilis Gym is extremely upset because he says his legal funds were confiscated by the state on Wednesday. Ian Smith and his business partner, Frank Trumbetti, own and operate the gym. Since the start of the coronavirus outbreak, the establishment has refused to follow Covid-19 protocols enforced by the state. The co-owners of the Bellmawr, New Jersey (NJ) establishment Atilis Gym, Ian Smith (left) and Frank Trumbetti (right). For instance, Atilis Gym does not require gym patrons to wear masks inside while working out. After refusing to follow the lockdown protocols assigned by NJ Governor Philip Murphy and the State Health Commissioner, Judith Persichilli, Atilis Gym has been fined $15k per day for remaining open in this manner. In July, NJ law enforcement officials barricaded the Atilis Gym entrance and arrested Smith and Trumbetti for defying court orders. A week later, Smith and Trumbetti filmed themselves breaking down the barricades the state leveraged to block the Atilis Gym’s doors. Smith and his partner stress that there have been zero cases of Covid-19 traced back to the gym. FREE MEN WILL NOT BE SILENCED. FREE MEN WILL NOT BE INTIMIDATED. FREE MEN WILL NOT BE OPPRESSED. — Ian Smith (@iansmithfitness) January 9, 2021 After the $15k daily fines started to add up, the levy against the NJ establishment has climbed well over a million U.S. dollars to-date. This week, Smith tweeted that the state had upped the enforcement on Wednesday by seizing $173,613 from the gym owner’s bank account. Smith said: Moments ago Governor Murphy and his cronies seized 100% of the Atilis Gym legal defense money ($173,613.60) in the middle of our appeals process – effectively and intentionally interfering with our right to counsel. If you think that’s gonna make us stand down, you’re delusional. Cryptocurrencies Are One of Most Frequent Recommendations, Says New Jersey Gym Owner Following the tweet, a few people recommended that the Atilis Gym owner accept cryptocurrencies like bitcoin. Smith also appeared on Fox News after the funds were seized, and he discussed the incident with the news anchor Tucker Carlson. “This is in the middle of an appeals process and ongoing litigation in the matter of the fines and several other matters regarding the state, including a lawsuit against Governor Murphy and [the State Health Commissioner] Judith Persichilli,” Smith explained to Carlson. During the episode, Tucker Carlson also mentioned the subject of cryptocurrencies. “How long do you think they’ll allow cryptocurrencies to exist,” Carlson asked the Atilis Gym owner chuckling to himself. Continuing to laugh, Carlson further said “Sorry, it’s just a thought as they can’t seize it from you…” Smith replied to Carlson’s cryptocurrency comment and said: “No, they can’t [seize crypto].” The Atilis Gym owner further added: That’s actually one of the frequent recommendations for people who want to continue to donate is to set up a cryptocurrency account. It’s uncertain whether or not Ian Smith and Frank Trumbetti will set up a cryptocurrency account in order to accept censorship-resistant donations. Whether the Atilis Gym owners do decide to accept crypto or not, the story still highlights the benefits of crypto assets like bitcoin that cannot be seized in such a manner. This is likely why digital currencies are one of the most frequent recommendations given to the New Jersey gym owners. Despite Smith’s most recent claims on Twitter and Fox News, the NJ Attorney General’s office disputes the money seizure. “This information is not accurate,” an NJAG spokesperson told the news anchor Carlson. “The State has not seized [its] bank account funds. However, the State has obtained judgments against the owners, and intends to collect on them. Whether that affects the entire balance of the gym’s funds is a question to ask the bank,” the NJAG spokesperson added. What do you think about the Atilis Gym owner’s problems with the state? Do you think they should accept cryptocurrencies like bitcoin? Let us know in the comments section below. View the full article

Argentine billionaire and CEO of the e-commerce platform Mercado Libre, Marcos Galperin says bitcoin is a better store of value than gold. However, the billionaire thinks the crypto will not replace fiat currency due to what he terms the high “energy cost required to process its transfers.” Bitcoin Mining Energy Consumption Misconception Galperin, who has an estimated net worth of $7.7 billion, made the remarks when responding to an inquiry from a Twitter user. The user wanted to know if the billionaire was a BTC holder as well as his opinion on the possibility of Argentina adopting cryptocurrencies. Although Galperin dismisses the idea of cryptocurrencies actually replacing fiat currencies, he does, however, think that “quantum computing” can solve the challenge of high energy costs which he believes to afflict the Bitcoin network. However, the billionaire’s remarks about the bitcoin network energy costs prompted a response from bitcoiners. For instance, in their response to the billionaire’s tweet, one user going by the name Martín Morando agrees with the first part of Galperin’s comments. Nevertheless, the user is quick to explain to the billionaire that his understanding of bitcoin mining may not be correct. In his tweet, Morando says, “the energy cost is not a problem (but) it is part of the combo.” He adds that “most of the energy used is renewable.” The Twitter user then refers the billionaire to a website that debunks the theory that bitcoin mining is energy inefficient. On the other hand, another user Ibarra Gustavo poses a question to Galperin: In Mercado Libre and Mercado Pago have they measured how many k.w.h they consume to process money transfers with all credit card and Mercado Pago entities that operate? Still, other users like Matias Walkoski are skeptical of Galperin’s opinion that quantum computing will prove to be instrumental in hastening BTC adoption. Instead, Walkoski thinks all “a quantum computer could do is make BTC’s cryptographic keys hackable.” Another Deluge of Pesos Coming Meanwhile, as Galperin is lauding bitcoin, reports were emerging from his crisis-laden home country that it wants to inject new money. Some experts believe Argentina’s planned injection of $12 billion worth of new money, which is less than the $16.4 billion injected in 2020, will worsen the country’s current plight. As of December 2020, Argentina had a reported inflation rate of 40% while its currency depreciated by as much as 94% against the U.S. dollar. According to one report, economic experts are predicting that the planned injection of new money will result in the significant depreciation of the peso and a higher inflation rate. Therefore, to escape the expected currency depreciation, the experts are encouraging Argentines to use “the crunchy pesos to buy bitcoin.” Do you agree with Galperin’s remarks that BTC will not replace fiat currencies? Tell us what you think in the comments section below. View the full article

The U.S. has sentenced a cryptocurrency exchange owner to 10 years in prison. He “knowingly and intentionally engaged in business practices designed to both assist fraudsters in laundering the proceeds of their fraud and to shield himself from criminal liability,” the Department of Justice alleges. Crypto Exchange Owner Sentenced to 10 Years in Prison The U.S. Department of Justice (DOJ) announced Tuesday that a bitcoin exchange owner has been sentenced to 121 months in prison “for his role in a transnational and multimillion-dollar scheme to defraud American victims.” Following his conviction in September last year, Rossen G. Iossifov was sentenced “for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit money laundering.” The DOJ explained that the 53-year-old Bulgarian national owned and managed a cryptocurrency exchange headquartered in Sofia, Bulgaria, called RG Coins. Allegedly, he “knowingly and intentionally engaged in business practices designed to both assist fraudsters in laundering the proceeds of their fraud and to shield himself from criminal liability.” The Department of Justice claimed that at least five of his principal clients “were Romanian scammers, who belonged to a criminal enterprise known in court records as the Alexandria (Romania) Online Auction Fraud (AOAF) Network.” Iossifov and his co-conspirators “engaged in a large-scale scheme of online auction fraud that victimized at least 900 Americans,” the DOJ detailed, adding that once victims sent payment: The conspiracy engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers. “Iossifov was one such foreign-based money launderer who facilitated this final step in the scheme,” the DOJ noted. The Department of Justice further alleged that “Iossifov designed his business to cater to criminal enterprises by, for instance, providing more favorable exchange rates to members of the AOAF Network,” elaborating: Iossifov also allowed his criminal clients to conduct cryptocurrency exchanges for cash without requiring any identification or documentation to show the source of funds, despite his representations to the contrary to the major bitcoin exchanges that supported his business. According to the DOJ, Iossifov laundered nearly $5 million in cryptocurrency for four scammers in less than three years. He also defrauded over $7 million from American victims and made over $184,000 in proceeds from these transactions. What do you think about this case? Let us know in the comments section below. View the full article

A man has accidentally thrown away a hard drive containing 7,500 bitcoins. He is now offering his city 25% of the value of the bitcoins stored in the hard drive for permission to search the city’s landfill site. His bitcoins are now worth almost $300 million at the current price. In Search of Hard Drive Containing 7,500 Bitcoins James Howells, an IT engineer, mistakenly threw away the hard drive of an old computer containing 7,500 bitcoins. The coins, worth almost $300 million at the current price, is now in a landfill site in Newport, South Wales. The 35-year-old explained that he threw out the hard drive that contained his bitcoin private keys in summer 2013 when he was clearing out his desk. After he realized his mistake, he asked the council for permission to search the city’s landfill site but his requests have been denied so far. He admitted: I had two identical hard drives and I threw out the wrong one. The Newport resident is now offering his city council 25% of the bitcoin stored in the hard drive, worth about $72 million at the current price, in the form of a Covid Relief Fund for the city’s residents. “I’ve got backing from a hedge fund who are willing to put up the funds for the project. We are happy to put money in an escrow account,” he noted. “If I could access the landfill records, I could identify the week that I threw the hard drive away,” he shared his plans. “I could identify the serial number of the bin that it was in, and then I could identify where the grid reference is located. We only want to search in one specific area. We want to employ an inflatable structure to create an air-tight seal around that area to stop landfill gases escaping.” Despite years in the landfill, Howells said he is confident that his bitcoins are recoverable, stating: There is no guarantee that it’s still working because of the environment it’s been in, but there are things that give me confidence. “The outside case might be rusted. But the inside disk, where the data is stored, there should be a good chance that it still works,” he elaborated. “I believe there still will be a chance. But the longer this drags on though, it’s less likely to be a possibility.” A Newport City Council spokeswoman confirmed that the council “has been contacted a number of times since 2014 about the possibility of retrieving a piece of IT hardware said to contain bitcoins.” According to the city council’s spokeswoman: The cost of digging up the landfill, storing and treating the waste could run into millions of pounds – without any guarantee of either finding it or it still being in working order. “The council has also told Mr. Howells on a number of occasions that excavation is not possible under our licensing permit and excavation itself would have a huge environmental impact on the surrounding area,” the spokesperson described. “Even if we were able to agree to his request, there is the question of who would meet the cost if the hard drive was not found or was damaged to such an extent that the data could not be recovered. We have, therefore, been clear that we cannot assist him in this matter.” Do you think Howells will be able to recover his bitcoins? Let us know in the comments section below. View the full article

A South Korean court has sentenced the former CEO of the defunct crypto exchange Coinnest to 18 months in prison. The court also fined him over $61,000, who also was charged for fraud in 2020. Prosecutors Accused Coinnest Executives of Receiving 110 BTC in Bribes According to Fn News, the Supreme Court of Korea determined that Kim Ik-hwan should spend time in jail, as the authorities previously indicted him in 2018 for accepting bitcoin (BTC) bribes. The investigation unveiled that he and other executives received almost $771,270 worth of BTC (at the time) for arranging the listing of an unnamed altcoin — referred to by the court as “S” coin. However, the former Coinnest CEO and its former operating director, Jo Mo, claimed there was “no unfair solicitation.” The prosecutors commented in the first trial: The defendants acknowledged or promoted the situation that they were taking unreasonable gains by manipulating the market price on the exchange after listing the cryptocurrency. (…) This crime greatly undermined fairness and trust in cryptocurrency transactions. This is bad. Although the Supreme Court, chaired by judge Noh Jeong-hee, didn’t reveal details on the “S” coin, prosecutors said the altcoin was issued by K Group. The prosecution also accused Coinnest’s executives of receiving 110 BTC in bribes for the purpose. Jo Mo’s sentence is still pending confirmation by the Supreme Court. Former Coinnest’s CEO Court History The former CEO of the now-defunct crypto exchange has additional sentences on his CV. Alongside two unnamed executives, Kim was found guilty in February 2020 of fraud and embezzlement. A South Korean court gave him a three-year prison sentence, but it was suspended for four years. Moreover, the appeals court sentenced Kim to pay a $2.5 million won fine, and also to serve 100 hours of community service. The judge ruled that Kim and the other executives misappropriated “billions” of won, transferring client funds to employee accounts. At that time, the executives denied any wrongdoings. Coinnest closed its crypto exchange operations in April 2019. What do you think about this sentence? Let us know in the comments section below. View the full article

One of the world’s biggest bitcoin mining machine manufacturers is preparing to go public in the United States. China-based Whatsminer is reportedly looking to obtain additional funds to buy Samsung chips with the initial public offering (IPO). Whatsminer’s Revenue Could Hit $1 to $2 Billion in 2021 According to Chinese media outlets and Asian journalist Collin Wu, the company’s market value can exceed “tens of billions.” Citing three sources familiar with the matter, Wu says that such a move could help the mining giant obtain more funds to increase its production capacity. The founder of Whatsminer, Yang Zuoxing, is a former employee of Bitmain, and he claims to be the pioneer of the S9 mining devices Bitmain produces. Back in 2019, Bitmain sued him for “infringement of trade secrets.” Whatsminer’s IPO plans include going public, on Nasdaq. The US public listing plans have been in the works since 2019. However, the aforementioned legal issues with Bitmain ahve delayed the listing. Per Weixin, due to the surge in mining machines’ price, Whatsminer’s revenue could hit $1 to $2 billion in 2021. That’s why the expectations around the company are high in anticipation of the IPO, said Wu. Although a timeline is not set yet, Weixin forecasts that both Whatsminer and Bitmain could be listed in the U.S. in the next two years. Latest Moves in the Crypto Mining Industry Overall, the crypto mining world has been quite lively in the last few months, especially in the manufacturing industry. 500.com Ltd reached an initial agreement to acquire mining machines from an unnamed non-U.S. seller. The transaction will allow the company to acquire mining machines, including such models as the M20s from Microbt S17, T17, and S9 from Bitmain. On December 16, 2020, news.Bitcoin.com reported that the latest generation mining rigs’ prices have gone up 35% since the beginning of November. What are your thoughts on Whatsminer’s IPO plans? Let us know in the comments section below. View the full article

Cryptocurrency exchange Coinbase published a statement addressing their U.K. and E.U. customers, apologizing for system outages and account restrictions. The company also recognized their customer support “has not been at the levels” expected. High Flow of Incoming Customers According to the public apology, the U.S.-based crypto company said customers from both regions have been facing transaction restrictions. However, Coinbase didn’t make a direct mea culpa for its global issues, that occured precisely when volatility and velocity increased in the crypto markets. Coinbase blamed the recent “sustained market rally that has brought a significant number of new customers” onto the platform. Moreover, Coinbase claims that the regulatory environment is not helpful in this situation: Evolving regulatory requirements mean that we have to collect additional information from some of our customers, which has meant temporary restrictions being placed on their accounts as we request that information. But the firm admitted that they could do “a better job in communicating” regulatory obligations and requirements to their customers. However, they didn’t provide full details on the matter in the statement. As additional measures to deal with the issues, the crypto exchange detailed that they’ll prioritize pending customer information requests. Also, Coinbase will send push notifications and emails, asking for additional information to more quickly remove restrictions. Another of the changes rolled out by the firm is the re-enabling of a feature exclusive for their U.K. customers: We have re-enabled a feature that allows U.K. customers to directly convert crypto into fiat currency (GBP/EUR) and transfer it into their Paypal accounts. Coinbase’s Background on System Outages Coinbase’s system reliability is often on the radar when bitcoin (BTC) volatility heats up, especially when it reaches new all-time highs. Over the last weekend, the San Francisco trading platform had an issue with “delayed transfers.” The day prior, it suffered from “delayed transfers and elevated error rate.” In another instance on Monday, the analyst Willy Woo tweeted about the San Francisco exchange Coinbase and stated that “buys on Coinbase are not completing.” The issue this time happened amid a larger bitcoin price drop. As of press time, while the platform is working well, some customers have been experiencing a delay with ID verification, according to Coinbase’s status page. What are your thoughts on the Coinbase mea culpa? Let us know in the comments section below. View the full article

The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to launch the first federally chartered digital asset bank in the country. In a statement on Jan. 13, 2021, the OCC said the company received the national trust banking charter, which allows it to create Anchorage Digital Bank, following a thorough review of its operations. With the approval, Anchorage will now be expected to comply with the capital and liquidity requirements of the OCC and certain risk management procedures. The firm signed an agreement with the banking regulator to this effect. “By bringing this applicant into the federal banking system, the bank and industry will benefit from the OCC’s extensive supervisory experience and expertise,” said the regulator, a unit of the U.S. Treasury Department. “At the same time, the Anchorage approval demonstrates that the national bank charters were provided under the National Bank Act are broad and flexible enough to accommodate evolving approaches to financial services in the 21st century,” it added. Founded in 2017 by Nathan McCauley and Diogo Mónica, Anchorage provides crypto custody and trading services to institutional investors. The firm reportedly manages around $100 billion in transactions per year. Anchorage filed for a national banking charter last year, hoping, among other things, to make it easier for conventional banks to offer crypto services via what it calls sub-custody with the company. In a blog post on Wednesday, McCauley and Mónica detailed: Having a national bank charter places Anchorage Digital Bank firmly on the same regulatory footing as other national banks in the country. Since our founding, we’ve been credited numerous times with blurring the lines between crypto and traditional finance. Today, we’re happy to see those lines begin to be erased. Anchorage becomes the first cryptocurrency entity to receive a federal charter. However, last year Kraken and Avanti were both licensed to operate as digital asset banks by Wyoming state. The state charter allows the duo to go national, but there are limits. The Anchorage banking charter is being hailed as an important development in the growth of the crypto industry in the U.S. Under Acting Comptroller Brian Brooks, the OCC has shown some progress in building the nascent sector. Last year, the regulator allowed banks to use stablecoins and public blockchains for settlement. The OCC also gave the green light for U.S. banks to hold stablecoin reserves for issuers. What do you think about Anchorage’s national banking charter? Let us know in the comments section below. View the full article

Nigeria, one of the biggest cryptocurrency markets in the world, recently emerged as the country with the highest number of bitcoin searches globally, according to Google Trends data. The data shows that the West African country has a search score of 100, which is more than double that of its nearest rival. Youth-Driven Interest According to one local report, Nigeria’s rise to the top of bitcoin search rankings signals the growing utility of the crypto in that country. The report also explains that country’s youth have been the decisive force behind this surge in bitcoin searches. This assertion is supported by Senator Ihenyen, the new president of the Stakeholders in the Blockchain Technology Association of Nigeria (SIBAN). In his reaction to Nigeria’s new status, Ihenyen insists this is hardly surprising for a country with a “median age of 18.4.” He contends that in such a scenario, “interest in bitcoin and its adoption should be expected.” As the Google Trends data confirms, the Nigerian interest in bitcoin is also decentralized with the Delta State ranked first in that country. Lagos, the “most populous city” in Africa is ranked a distant 17th. According to the SIBAN leader, this decentralization of interest suggests that BTC is seen by the youth as “represent(ing) the democratization of access to global wealth.” Decentralized Interest Meanwhile, Ihenyen points out that while institutional investor interest in bitcoin is taking hold in countries like the United States, interest for BTC “in Nigeria is as decentralized as the cryptocurrency itself.” The SIBAN president explains: Nigerians are experiencing the level of financial inclusion that many have expected for too long. The freedom of money is a powerful thing, especially in a borderless, digital economy. Whether for remittances, e-commerce, bitcoin trading, more and more Nigerians are taking interest in bitcoin daily. According to Ihenyen, this growing interest be cannot be stopped but “can it be maximized and managed.” He adds that policymakers and regulators should therefore be searching for ways to maximize and manage this interest instead of “looking for the red button.” In the meantime, the Google Trends data also shows that two more African countries, namely South Africa (2) and Ghana (5), make it into the top five of the rankings. The next highest-ranked African country to feature on the list is Kenya at number 14. What does it mean for Nigeria to be ranked number on the bitcoin search list? Tell us what you think in the comments section below. View the full article

Etoro, a trading and investing platform, has warned its customers to brace for possible limitations on their buy orders this coming weekend. The company says it might be forced to take this and other steps if the anticipated and unprecedented surge in demand for cryptos occurs. Unprecedented Demand and Limited Liquidity The Israeli company’s warning follows its curb of European investors’ “ability to trade cryptocurrencies on margin” in the past week. The company had reportedly made this decision in “response to soaring risks in the market.” Etoro’s notice, which implies that customer demand for cryptos remains high, comes less than a week after the BTC price plunged by more than 20% in less than 48 hours. This plunge caused the value of the entire cryptocurrency market to drop from over $1.1 trillion to $854 billion. Meanwhile, this recent BTC plunge occurred shortly after the crypto set a new all-time high (ATH) of over $41,900. Still, in its notice, Etoro suggests that demand for bitcoin and other cryptocurrencies is outstripping the supply. In the email sent to customers on Jan. 13, Etoro says: The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support buy orders over the weekend. In light of this, it may be necessary for us to place limitations on crypto buy orders over the weekend. Therefore, as part of the steps to curb this unprecedented demand, Etoro says it may set a “maximum exposure per crypto-asset per client.” Additionally, the trading platform might consider “temporarily suspending the ability to place new crypto buy orders.” Incredible Volatility Furthermore, one report quotes an unnamed Etoro spokesperson saying “crypto markets are incredibly volatile at the moment and the weekends present the greatest challenges.” This market volatility is epitomized by bitcoin which on Jan. 13 had regained 10% of value in 24 hours of trading. At the time of writing, bitcoin is trading at about $39,341 and its market capitalization is about $733 billion. What are your thoughts on Etoro’s limitation plan? You can share your views in the comments section below. View the full article

Oaktree Capital co-founder Howard Marks is warming up to cryptocurrency. Once a crypto skeptic, he now says “thankfully” his son is “quite positive on bitcoin” and “owns a meaningful amount for our family.” Howard Marks Warming up to Crypto Howard Marks, co-founder and co-chairman of Oaktree Capital Management, talked about bitcoin in a memo published this week. He has been discussing investment strategies with his son, Andrew, a professional investor who focuses on growth and technology companies. In one section of the memo, Marks admitted that he had “a high level of skepticism” towards cryptocurrencies. The Oaktree Capital Management co-founder noted: This view has been a source of much discussion for me and Andrew, who is quite positive on bitcoin and several others and thankfully owns a meaningful amount for our family. “In the case of cryptocurrencies, I probably allowed my pattern recognition around financial innovation and speculative market behavior – along with my natural conservatism – to produce my skeptical position,” he explained. “These things have kept Oaktree and me out of trouble many times, but they probably don’t help me think through innovation.” Marks continued: “I’ve concluded (with Andrew’s help) that I’m not yet informed enough to form a firm view on cryptocurrencies. In the spirit of open-mindedness, I’m striving to learn.” He proceeded to direct any questions and comments about cryptocurrency and bitcoin to his son. The Oaktree Capital executive is not the only one who recently softened his view on bitcoin. Earlier this month, economist David Rosenberg pleaded “ignorance on bitcoin,” admitting that the cryptocurrency exceeded his expectation. In November, Bridgewater Associates founder Ray Dalio admitted that he may be wrong about bitcoin and has since gained a better understanding of the cryptocurrency. What do you think about Howard Marks’ view on bitcoin? Let us know in the comments section below. View the full article

Goldman Sachs’ global head of commodities research sees the bitcoin market becoming more mature. “The key to creating some type of stability in the market is to see an increase in the participation of institutional investors,” he detailed. Meanwhile, the price of the cryptocurrency soared on Thursday, regaining much of the losses from the beginning of the week. Goldman Sachs Sees Maturing Bitcoin Market Jeff Currie, global head of commodities research at Goldman Sachs, told CNBC this week that the bitcoin market is becoming more mature. Noting that it is “very difficult to forecast” bitcoin’s price due to the level of volatility and uncertainty in the market, the Goldman Sachs head of commodities research remarked: I think the market is beginning to become more mature. I think in any nascent market you get that volatility and those risks that are associated with it. The price of the bitcoin has just returned to the $40K level after taking a nosedive Sunday night, shedding billions off its market cap. It climbed from a low of $36,811 to a high of $40,015 on Thursday, gaining about 8.7%. At the time of writing, BTC is trading $39,583 and its market cap has surpassed $736 billion. Bitcoin’s price chart showing a low of $36,811 and a high of $40,015 on Thursday. Source: markets.Bitcoin.com. Currie further opined: The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small. Currie added that “institutional money” only accounts for “roughly 1%” of bitcoin’s market cap. Meanwhile, Bitcointreasuries.org, the site which lists known companies holding bitcoin, shows that a total of 1,171,889 BTC are held by public companies and investment funds. This amounts to more than $46 billion or approximately 6% of bitcoin’s total market cap. Nonetheless, the number of institutional investors with bitcoin in their portfolios has been increasing. Several reports suggest growing institutional demand for BTC, such as a survey by Fidelity, which found that almost 80% of 800 institutional investors surveyed find crypto assets appealing. Among recent institutional buyers of bitcoins are Microstrategy, Ruffer, Skybridge, and Massmutual. Do you agree with the Goldman Sachs analyst? Let us know in the comments section below. View the full article

Crypto asset markets have seen some significant gains over the last 24 hours recapturing much of the losses suffered a few days ago. The entire crypto-economy valuation is now back over the $1 trillion mark and bitcoin has jumped above the $40k handle on January 14. Bitcoin (BTC) and a number of other digital assets have experienced some nice price gains during the last day. Gains that have almost erased the losses felt on Sunday and Monday. Bitcoin’s market capitalization today is around $734 billion, and the crypto asset has gained over 11% during the last 24 hours. At the time of publication, BTC is exchanging hands for prices between $39,200 to $39,700 per unit, and has $23 billion in global trade volume today. Ethereum (ETH), the second-largest market cap has gained over 11% today as well and is swapping for $1,236 per ether. On January 14, 2021, the BTC/USD price touched a high of $40,113 per unit. At press time the price is exchanging hands for above $39k per unit. The fourth-largest market valuation belongs to XRP, but the position is awfully close to being taken by the polkadot (DOT) crypto asset. XRP is trading for $0.30 per unit on Thursday and has a market valuation of around $13.6 billion. Following XRP, is polkadot’s (DOT) market, which has gained a whopping 21% during the day. DOT is trading for $12.79 per unit and has a market cap of around $12.1 billion. Behind DOT is litecoin (LTC), which is up as well gaining 11% today and swapping for $154 per LTC. Bitcoin cash (BCH) has gathered 12% in gains on Thursday jumping to $535 per BCH. Currently, BCH is trading for $526 per coin at the time of publication. The crypto economy has recaptured a $1 trillion market cap. The last three top ten contenders include ADA (up 8%), XLM (up 7%), and BNB which has gained a touch over 6% today. Today’s biggest gainers include hedgetrade (HEDG +296.88%), idle (IDLE +81.56%), insights network (INSTAR +62.47%), coinmeet (MEET +47.68%), and keeperdao (ROOK +46.24%). The biggest losers on Thursday are coins such as fuzex (FXT -49.46%), robotina (ROX -45.05%), dragonchain (DRGN -42.81%), neuroChain (NCC -25.88%), and bitcore (BTX -25.30%). The recent value spike has added confidence to many cryptocurrency advocates after last Monday’s losses. “Welp, that was a quick bear market,” tweeted the bitcoin proponent Anthony Pompliano on Thursday. “Bitcoin back to $40,000. Stop listening to fools with no skin in the game,” Pompliano added. Plan B’s stock-to-flow (S2F) chart shared on January 14, 2021. The creator of the stock-to-flow bitcoin price model, Plan B, also tweeted about the price jump after the crypto asset crossed $38k. Plan B stated: Bitcoin $38k is nice, but I am still waiting for that larger monthly jump that usually marks the phase transition / the point of no return (red arrows). The Civic founder Vinny Lingham, otherwise known as the ‘Oracle,’ also discussed the price on Thursday and made another prediction. “If bitcoin breaks $42k, it’s going to run to test $50k pretty quickly,” Lingham tweeted. “If it doesn’t, then most likely we’re going to be stuck below $40k for a while, with some sideways consolidation [and] this may trigger a big run on altcoins. Keep an eye on ETH, FIL, SOL for major breakouts,” Lingham added. What do you think about the recent cryptocurrency gains and bitcoin’s jump during the last 24 hours? Let us know what you think about this subject in the comments section below. View the full article

On Wednesday, the popular musician and Youtuber, Alicia Dawn “Ali” Spagnola, made a new video and tweeted about how she got “accidentally bitcoin rich,” after taking a request for her project called Free Paintings. After getting a bitcoin in 2013 and checking her account eight years later, Spagnola said: “I just found out that I am bitcoin rich— This is my attempt to use it for joy.” Ali Spagnola is a well known artist, musician, and Youtuber with over 325,000 subscribers today. During one of her more recent videos, she explained how she accidentally got “bitcoin rich” from an individual who donated $50 in bitcoin to her in 2013. A few months ago, Spagnola realized that her Free Paintings project website accepted bitcoin donations and she tried to remember why she decided to take bitcoin donations back in 2013. The email Spagnola received in 2013. In 2008, the artist and Youtuber started her project Free Paintings, where she takes requests via email so she can create a 12×12” acrylic painting for them. Spagnola has always created the artwork for free, and sends the artwork in the mail for free as well. To-date, Spagnola has created 2,700 paintings for people and over the years people have donated money to her as well. She still does the Free Paintings project to this day whenever she has time, as the waitlist is reported to be over 1,300 individuals long. When Spagnola decided to look at her email inbox, she realized that an individual convinced her on June 25, 2013, to accept the digital currency. The original email said: “I would like to pay you $50 (in bitcoins) for your interpretation of a bitcoin- a new virtual currency that makes it super easy to send/receive money over the internet.” The individual convinced her and so Spagnola painted him a 12×12” bitcoin painting and in the video, she shared the picture of her artwork that she designed at the time. When Spagnola originally checked the exchange rate of BTC it was well over $11k. Months later, Spagnola checked the exchange rate again, and the single bitcoin that the individual donated to her was worth $39k. The picture on the upper left side is the original 12×12” bitcoin painting Spagnola created for the individual who paid her a bitcoin. Moreover, Spagnola connected with the individual that sent her the bitcoin, and he sent her a recent picture of the painting she made framed on his wall. So the artist and Youtuber decided to blast some of her bitcoin riches on lots of art supplies and started a new project. With an expensive wood-backed canvas Spagnola created a much larger bitcoin painting as a thank you for her gift back in 2013. Spagnola decided to create a new piece of art for the individual, met him in Las Vegas, and thanked him for the bitcoin donation. The popular Youtuber has also decided to pay it forward and gave away $50 in bitcoin to ten people who commented on her recent Youtube video. “The original point of my Free Paintings project is that I want art to be for everyone, not just the elite, so I started giving it away and then people started donating for it,” Spagnola said. The popular Youtuber further stressed: The bitcoin [payment] part adds another layer,” Spagnola added. “Was it a $50 painting or worth thousands? Am I giving him something worthless right now? Perhaps Youtuber’s works will be in museums in the future? Then Spagnola traveled to Las Vegas to meet the individual who paid her in bitcoin back in 2013, in order to give him the newer and much larger painting. When she met the individual at a coffee shop, he told her that the original “picture was one of his most prized possessions.” Additionally, since Spagnola “got so lucky” she decided to “pay it forward” and do exactly what he did ten times. “I will be giving $50 in bitcoin to ten random commenters on this video,” Spagnola declared on her channel. The Youtuber Ali Spagnola’s recent bitcoin video follows a number of other popular Youtubers discussing the crypto asset phenomenon on the video-sharing platform. Pewdiepie recently told his 107 million channel subscribers he’s been getting into cryptocurrencies and non-fungible token (NFT) asset games. The renowned Youtuber Andrei Jikh published a video in November to his 978,000 subscribers and explained that he invested over $100,000 in crypto assets. Jikh also said he also plans to follow up with that investment video. What do you think about Spagnola’s video about her 12×12” bitcoin painting and the bitcoin payment she got increasing in value? Let us know what you think about this subject in the comments section below. View the full article

A survey reveals that the number of U.S. financial advisors allocating to crypto in their clients’ portfolios surged significantly from 2019. The figures show that it rose 49% in 2020, from 6.3% to 9.4%. A Vast Majority of the Advisors Also Have Personal Crypto Investments According to the San Francisco-based asset management firm Bitwise, 58% of advisors allocating to crypto are independent Registered Investment Advisors (RIAs). The report says that the finding is not a surprising one. In fact, RIAs do not have restrictions on which type of investments they can include in portfolios. The study also reveals that the vast majority of advisors with clients investing in crypto had personal investments in the sphere. According to the report: 82% of advisors reporting client allocations to crypto also reported a personal investment in the space. Advisors Are Still Interested in Increasing Their Crypto Positions The report further notes that 78% of the surveyed advisors are thinking about increasing their clients’ crypto allocation in the next 12 months. However, 12% of them will keep “steady,” said the study. Moreover, no advisors reported plans to decrease or remove their current crypto positions. The survey also adds: The percentage of advisors planning to increase their clients’ allocation to crypto rose substantially this year; last year, just 42% of advisors with client allocations reported plans to increase that allocation. Regarding the reasons for adding crypto-asset exposure to clients’ portfolios, the survey found a “sharp uptick” in advisors praising crypto’s “high potential returns.” Also, they pointed out crypto’s role in “inflation hedging” as an attractive feature for the asset class. Bitwise noted: Thirty-eight percent (38%) of advisors highlighted ‘high potential returns’ as an attractive feature of crypto, up from 30% in last year’s survey … The biggest increase by far, however, was for ‘inflation hedging,’ which 25% of advisors highlighted as an attractive feature, up from just 9% in last year’s results. There has been a significant rise in interest in inflation-hedging tools over the past year, and a number of well-known institutional investors publicly highlighted bitcoin as a potential hedge against inflation risks in the past year. What are your thoughts on the survey? Let us know in the comments section below. View the full article

Grayscale Investments is shutting down its Grayscale XRP Trust and liquidating its XRP holdings in order to distribute cash proceeds to the trust’s shareholders. The firm cited difficulty in converting XRP into U.S. dollars following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple. Grayscale Axes XRP Trust Grayscale Investments announced Wednesday that it is commencing the “dissolution of Grayscale XRP Trust.” The company detailed that on Dec. 22, the U.S. Securities and Exchange Commission (SEC) decided “to file a federal court action against certain third parties asserting that XRP is a ‘security’ under federal securities law.” It added: In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms. This has resulted in Grayscale’s “conclusion that it is likely to be increasingly difficult for U.S. investors, including the [Grayscale XRP] Trust, to convert XRP into U.S. dollars, and therefore continue the trust’s operations.” Grayscale further explained that it “has liquidated the trust’s XRP and intends to distribute the net cash proceeds to trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding.” The company emphasized: The trust will terminate following distribution of the net cash proceeds. After removing the XRP Trust, Grayscale now offers nine crypto investment products: the bitcoin trust, bitcoin cash trust, ethereum trust, ethereum classic trust, horizen trust, litecoin trust, stellar lumens trust, zcash trust, and the digital large-cap fund. On Jan. 13, the total assets under management across its crypto products total $24.7 billion. Do you think Grayscale did the right thing in closing down its XRP product? Let us know in the comments section below. View the full article

The president of the European Central Bank (ECB), Christine Lagarde, has called for the global regulation of bitcoin. She said that bitcoin is a highly speculative asset and has “conducted some funny business.” Emphasizing the need for countries to work together to regulate bitcoin, she suggested that the crypto regulation could be “initiated by the G7, moved into the G20 and then enlarged.” ECB Chief Calls for Bitcoin Regulation Globally ECB President Christine Lagarde said in an interview at the Reuters Next conference Wednesday that bitcoin is “a speculative asset by any account.” She added: “I mean, when you look at the most recent developments upward and now the most recent downward trend, it’s for those who had assumed that it might turn into a currency. Terribly sorry, but this is an asset.” The ECB chief elaborated: It’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity. “I think that there are criminal investigations that have taken place that I’m sure will continue to take place that demonstrates it very clearly. And there has to be regulations. And this has to be applied and agreed upon,” she continued. However, she did not clarify what investigations she was referring to. Calling for regulation specific to bitcoin, Lagarde said: It’s a matter that needs to be agreed at a global level, because if there is an escape, that escape will be used. So, I think … that global cooperation, multilateral action is absolutely needed, whether it’s initiated by the G7, moved into the G20 and then enlarged. “But, it’s something that needs to be addressed,” she emphasized, adding that the Financial Action Task Force (FATF) “is clearly an organization that has expanded in that respect.” Lagarde’s remarks about bitcoin drew many comments. Financial analyst Dan Tapeiro wrote, “Embarrassing for Lagarde. Please do some reading.” Morgan Creek Digital partner Anthony Pompliano made a video explaining why “Bitcoin is the most regulated currency in the world” and why it “is already more regulated, and used less often for illicit purposes, than any other currency.” Several commenters pointed out that it is the ECB and other central banks that are doing “funny business” with all their money printing activities. Many people noted that Lagarde herself is a convicted felon. A Twitter user opined: “Why are all the people trying to regulate bitcoin incredibly sketchy themselves? Lagarde was ‘found guilty of criminal charges over massive (400m euro) government payout.'” While serving as the managing director at the International Monetary Fund (IMF), Lagarde was convicted in 2016 on negligence charges over a state payout made while she served as France’s finance minister in 2008. Nonetheless, she escaped punishment and kept her job at the IMF. Meanwhile, Lagarde also said Wednesday that she hopes it would take no more than five years to launch a digital euro. What do you think about Lagarde calling for global bitcoin regulation? Let us know in the comments section below. View the full article

The government of Khyber Pakhtunkhwa (KP), the third largest of Pakistan’s four semi-autonomous provinces, is setting up two state-backed bitcoin mining farms, local media reported last week. Ziaullah Bangash, advisor to the chief minister of KP on Science and Information Technology, said the provincial parliament passed a bill allowing the KP government to use its own money to establish the mining facilities. The province, which has since legalized crypto mining, will be mining bitcoin (BTC) for profit, BOL News, a local media organization, reported. No details were given about the capacity of the mining farms nor the funds that the state intends to invest in the project. This particular province has previously advocated friendly crypto laws in Pakistan. According to Bangash, the KP Assembly also passed a separate no-objection certificate allowing individuals to mine cryptocurrency and issue their own digital assets. The development coincided with the launch of a private bitcoin mining farm by Waqar Zaka, a long-time crypto enthusiast who has worked to develop the Pakistani crypto industry. “After years of struggle, I am launching the biggest crypto mining farm in KPK where you all can invest & earn,” Zaka said in a tweet. He thanked Bangash for his legal backing. Replying, Bangash stated that “in future, the help of Waqar Zaka will be sought” in the KP administration’s crypto mining plans. Profits from bitcoin mining may help prop-up Pakistan’s ailing economy, but KP must first overcome the country’s long-running electricity crisis. Pakistan is facing severe electricity shortages, with power cuts a common occurrence. Last Saturday, the entire country was thrown into darkness, the Financial Times reports. Authorities blamed the blackouts on a “technical fault” at one of the country’s main power plants in the south. Pakistan only started to restore power in bits on Sunday. Now BTC mining — the process by which new bitcoins are created using sophisticated, super-computers — is not only an energy-intensive venture but also one that demands consistent power supply. Situated in north-western Pakistan, a mountainous, cool region along the border with Afghanistan, KP might have the best weather for bitcoin mining. But will it have enough energy to sustain a profitable operation? What do you think about the Khyber Pakhtunkhwa government’s bitcoin mining plans? Let us know in the comments section below. View the full article

The U.S. President-elect Joe Biden is set to name Gary Gensler as the new chairman of the U.S. Securities and Exchange Commission (SEC) to replace Elad Roisman. During Obama’s administration, Gensler led the U.S. Commodity Futures Trading Commission (CFTC) from 2009 to 2014. The Former Banker Became Part of Biden’s Transition Team in November According to Reuters’ two unnamed sources, Biden has finally decided on his final pick to lead the SEC, following the stepping down of Jay Clayton as chairman in December. Gensler is a well-known figure in the crypto industry, specifically in the academic sphere. During Trump’s administration, the former Goldman Sachs banker taught courses on crypto assets and blockchain at MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could aim for “tougher regulations,” raising concerns among Wall Street firms. If confirmed by the Senate mostly controlled by Democrats, Gensler would also be leading the regulator’s fight against Ripple Inc. The former banker also headed Biden’s financial policy transition team in November. Such fact increased the odds that the Wall Street veteran would be likely appointed to take an SEC role. Former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for his initial coin offerings’ pursuing agenda. During his tenure, the regulator also released a report declaring digital assets could be treated as securities. How Will the Legal Fight With Ripple Be Resolved With Gensler as Chairman? Under the leadership of Gensler, the SEC vs. Ripple saga could have a negative impact for the blockchain firm due to the previous statements made by the former banker. During a speech at an MIT conference in 2018, Gensler said there is a “strong case” for XRP being classified as a security. In fact, the Wall Street veteran claimed that Ripple “is doing a lot to advance the value of XRP.” On Jan. 7, Ripple CEO Brad Garlinghouse addressed some of the allegations made by the SEC. At the time, he said that the firm would be filing its initial legal response “within weeks.” Do you agree with the nomination of Gensler as SEC chairman? Let us know in the comments section below. View the full article

PRESS RELEASE. Bityard recently launched the copy trading system for CFD (contract for difference) trading, allowing users to copy trading activities from advanced traders, which greatly reduces the difficulty of crypto investment for beginners. Via Bityard copy trading system, beginners can learn how to trade correctly from the experts, and traders who get copied and followed can receive extra profits from each successful trade while getting copied. Right now, Bityard copy trading service is available on different devices including mobiles and PCs. Cryptocurrencies are different than many types of asset since the prices are much more unstable, which makes it much harder for junior investors to establish proper investing strategies for crypto CFD trading. The invention of copy trading system of trading service providers makes it much more convenient for investors to copy other traders since the copy trading process can be completed on one place online. Investors don’t need to go to different online groups for signals then trade somewhere else anymore. Bityard, a fast-growing crypto exchange, also has developed a professional copy trading system which will greatly benefit both copiers and signal providers (or, advanced traders). On Bityard, when a user wants to copy a trader, the user only needs to find one among all the traders with good performance, and complete the trading setting to start copying. The process is pretty simple and easy. Bityard copy trading system allows users to flexibly manage the position settings, which includes their position margins. A copier can increase the position margin when the copier has confidence in a trader, and can also limit it to avoid huge losses due to possible forcedly closed positions. There is a great number of top traders on Bityard. These traders all have been approved by Bityard so that the users can copy them without worries. All traders must complete a series of strict verification processes on Bityard before they get copied by other users. Once Bityard makes sure a trader is qualified enough, the trader will become “listed”, and the performance data of the trader will become visible to all Bityard users. Those data include profit rate, win rate, P/L ratio which shows the overall trading performance of the listed traders on Bityard. Also, Bityard users can find different types of traders on Bityard via the trader tag function. Those tags are related to trading styles of the traders including “short term”, “aggressive”, “mainstream” and so on. Bityard copy trading system doesn’t only benefit copiers. For listed traders, the copy trading system also brings them extra incomes. Any listed trader will get at least 8% commission from the profits of each successful trade while getting copied. In addition, Bityard has brought more social features to its copy trading system. A listed trader on Bityard has their own personal homepage, where the trader can leave short self-introduction on the page. This will help other users to know more about the trader. Bityard copy trading system has easy-to-understand user interface design with sophisticated functions, which makes trading much easier for copiers and crypto beginners. The system was developed with the service concept “Complex Contract, Simple Trade” by Bityard in order to bring more convenience and simplicity to users. Media contact: bd@bityard.com This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

There’s a new type of token gaining popularity in the crypto space with the launch of coins that are backed by a specific amount of proof-of-work (PoW) hashrate. On January 6, 2021, Binance launched a new project called the bitcoin standard hashrate token (BTCST), a coin that represents 0.1 terahash (TH/s). Furthermore, the mining operation Poolin has also revealed a hashrate token called pBTC35A and each token represents 1 TH/s hashrate with pre-determined SHA256 processing power. Tokens Backed by Proof-of-Work The Bitcoin (BTC) network has seen the protocol’s hashrate increase significantly during the last few weeks, despite the network mining difficulty being so high. There have also been substantial numbers of mining rigs added to the network in recent months and exchanges like Binance and Huobi have joined the mining fray. With bitcoin mining showing significant upside potential, a couple of crypto industry heavyweights have introduced tokens backed by PoW hashrate. Last week, Binance unveiled a new project called the bitcoin standard hashrate token (BTCST), a coin that’s claimed to be backed by 0.1 terahash (TH/s). “BTCST sets off to solve the problem of limited exit options by bringing exchange-grade liquidity to Bitcoin mining, and in secondary trading,” Binance announced last Wednesday. “BTCST will perform as a leveraged Bitcoin token free from liquidation risk. BTCST will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin.” The crypto trading exchange added: BTCST is collateralized by 0.1 TH/s of real-world Bitcoin mining power, which is historically proven to be positively correlated to the performance of the digital gold, and hence the value of BTCST climbs along with the current skyrocketing Bitcoin market. Poolin Launches the Mars Project, Binance PoW Token Audited However, Binance is not the only business looking to offer a PoW mining token as the mining operation Poolin has also introduced the Mars Project. On January 11, 2021, Poolin tweeted “Join the first Ethereum-based standardized hashrate protocol, earn wBTC and LP reward. Infinite possibility when PoW mining steps into [an] Ethereum smart contract,” the mining pool further said. Currently, Poolin is the fifth largest bitcoin pool capturing around 9.4% or 14 exahash per second (EH/s) today. The Poolin minted ERC-20 token is called pBTC35A and the company says each coin is backed by the firm’s PoW hashrate. “The protocol consists of pBTC35A tokens and [the] MARS token,” Poolin’s announcement explains. “Each pBTC35A token represents 1TH/s hashrate with a pre-determined power ratio, mining rigs would be in Poolin Superhashrate’s custody during life cycle. While net profit on wBTC would be distributed per block.” Poolin says the first batch will be “50,000 pBTC35A (approximately 50PH/s) tokens for Bitcoin (output with wBTC) mining in this protocol and locks up more than 50PH/s machines physically.” Poolin notes that people can obtain the tokens using the inhouse shop ((Basic KYC needed) or via the token’s Uniswap contract. The company further detailed that Ethereum and other PoW mineable coins will be also created, but Poolin doesn’t have a confirmed schedule. According to Binance Launchpool, the PoW token (BTCST), the organization recently launched has also passed an audit from the blockchain security company Certik, and scored a “98 out of 100 in a security audit.” Users will be able to stake BNB, BUSD, and BTC in separate pools in order to farm BTCST tokens, Binance Launchpool also said. “Compared to conventional cloud mining, BTCST portrays the decentralized spirit of blockchain, with all mining rewards distribution done by smart contracts that are onchain with full transparency,” Alex Zhao, the cofounder, and CTO of BTCST said last week. What do you think about the new tokens backed by PoW hashrate? Let us know what you think about this subject in the comments section below. View the full article

The Bitcoin network’s hashrate has been operating at very high processing speeds during the last few weeks, as the overall hashrate touched a whopping 171.2 exahash per second (EH/s) on Monday. Moreover, the network’s mining difficulty has also touched an all-time high (ATH) at 20.61 trillion, the highest difficulty the network has ever experienced in the last 12 years. One aspect of the Bitcoin (BTC) network that people look at to measure the protocol’s overall health and growth is the hashrate. At the time of publication, the BTC hashrate is processing at speeds of around 165.38 EH/s and the miner’s collective hashpower has been nearing all-time highs again. For instance, on December 30, 2020, the network hashrate spiked to a colossal 178.6 EH/s and 12 days later the hashrate hit 171.2 EH/s. What has surpassed its ATH is BTC’s network mining difficulty or difficulty adjustment algorithm (DAA). This week the mining difficulty is the highest the difficulty has ever been in Bitcoin’s lifetime to-date. After the significant price dip on Monday and the accelerated hashrate the same day, the protocol pushed the mining difficulty to 20.61T. Bitcoin (BTC) mining hashrate is operating at 165,376,566,182,178,200,000 H/s on Wednesday, January 13, 2021, at 8:00 p.m. (EST). Because the hashrate is so high entering the second week of January 2021, the Bitcoin network’s difficulty will increase +9.98% or 22.66T, another ATH in less than two weeks. This will take place in roughly nine days from now, give or take, depending on the average output of blocks per day. Bitcoin (BTC) mining difficulty is approximately 20,607,418,304,385 (20.61T) on Wednesday, January 13, 2021, at 8:00 p.m. (EST). The BTC hashrate has increased a great deal over the years, as the entire network’s hashrate was only one exahash per second back in January 2016. On May 8, 2017, news.Bitcoin.com reported on the BTC network hashrate touching 4,216,797,036 GH/s or over 4 EH/s. Since then and through the 2018 and 2019 bear market, the Bitcoin hashrate has grown over 3,700%. Before the May block reward halving, bitcoin miners got 12.5 BTC per block found but these days, a bitcoin mining pool only gets 6.25 BTC per block reward. Today’s 165 EH/s is the aggregate hashrate of all 18 bitcoin mining pools putting in “work” in the SHA256 “proof-of-work” consensus algorithm. With a block reward found every ten minutes or so, the Bitcoin block inflation rate per annum is only 1.78% during the first month of 2021. So far, even with this week’s BTC price drop miners are still profiting a great deal by dedicating hashrate to the chain. Statistics show at even $0.12 per kilowatt-hour (kWh) more than 200 application-specific integrated circuit (ASIC) devices that process the SHA256 algorithm are profiting today. Bitcoin proponents are quite confident with the overall hashrate and security of the cryptocurrency network. In a thread about BTC confidence, the bitcoiner Pierre Rochard explained that if people are “confident about Bitcoin’s fundamentals, then the exchange rate volatility is just— a joyful melody.” Rochard also said: Confidence in being able to send bitcoin. Bitcoin’s global peer-to-peer network of nodes and the massive mining hashrate ensure that your bitcoin gets to where you are sending them without foreign interference. Meanwhile, a number of dominant cryptocurrency exchanges are joining the mining industry. On Wednesday, the reporter Colin Wu (@Wublockchain) discussed how Huobi is entering the mining economy. “China’s largest exchange Huobi is about to start the sale of BTC mining machines,” Wu said. “Investors can purchase machines + custody services. The lock-in period is two years. Chinese exchanges are entering the mining field more. The Binance mining pool, which was launched in 2020, once ranked second in the total BTC network, surpassing a large number of traditional mining pools,” the finance reporter from China added. What do you think about Bitcoin’s increased hashrate and the difficulty’s all-time high? Let us know what you think about this subject in the comments section below. View the full article