Crypto Custodian BitGo Announces EOS Support

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Binance Lists Second BEP2 Community Project TomoChain (TOMO)

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Binance Lists Second BEP2 Community Project TomoChain (TOMO)

binance-lists-second-bep2-community-project-tomochain-tomo

Binance has announced the listing for the second month of the BEP2 Community Listing Program as TomoChain (TOMO), a proof-of-stake blockchain platform that operates a 150 masternode architecture. 

TomoChain Listed on Binance

In June, leading crypto exchange Binance announced the creation of the BEP2 Community Listing program, which aims to support the development of “high quality blockchain projects” in the industry. The program plans to list at least one new project over the course of three months. 

TomoChain represents the second month’s coin listing, selected from a competitive pool of eleven other projects that met the criteria for the exchange. Binance reports in the official update that TOMO was selected based upon the criteria outlined for the program, which includes authenticity of trading volume on their decentralized platform Binance DEX

The projects that were not selected during the most recent round of competition are eleibgible to apply for next month’s listing. Binance also reiterated that zero BNB was collected for the TOMO listing fee, which is supposed to be a community driven competition. 

TOMO seeks to improve upon ethereum’s network by implementing certain features such as double validation and staking smart contracts. The price of TOMO jumped 13 percent following the announcement. 

Sale of Ripple (XRP) Tokens Blamed for Collpase in Value

Sale of Ripple (XRP) Tokens Blamed for Collpase in Value

According to an article published by Bloomberg on August 23, the reason why XRP price has been falling during 2019 could be due to a continuous sale of XRP by Ripple. In response, people have started an online petition on change.org called “stop Ripple dumping”.

What Happened to Ripple?

Bitcoin along with most of the other cryptocurrencies have shown excellent signs of recovery through 2019 so far, according to data from CoinMarketCap. The overall cryptocurrency market rose from around $125 billion from January 1, 2019, to a maximum of $387 billion by June 26, 2019, an increase of more than 200 percent. Though this has changed significantly with the current total capitalization is hovering at $262 billion.

However, not all cryptocurrencies benefited from this recovery. In particular, it seems that the bear market for XRP never came to an end. Even though its market position remained stable in third place with a capitalization of $11.5 billion, the token has recorded a loss of 20 percent since the beginning of the year.

Cause and Effect

XRP is a “cryptocurrency” (only by name) that got increasingly popular as big financial institutions would start to use it as an alternative for international settlements. Apparently, that is what Ripple Labs, the primary firm behind the development of the Ripple Payment Protocol, is working on. They are making dozens of partnerships with financial institutions all over the world in order to establish Ripple technology as a standard for cross border payments.

But then, why is the price collapsing?

To better understand this step we must first analyze the structure on which the XRP token was created.

Ripple was initially conceived in 2011 by Arthur Britto, Jed McCaleb, and David Schwartz with the aim to optimize the weaknesses of Bitcoin, namely the risk of 51% attacks, speed in transactions and transaction capacity. The project was actually implemented in 2012 but the team made very different choices than that of Bitcoin, as set out in the original Bitcoin whitepaper.

The company in fact decided to create the totality of the tokens in advance by distributing:

  • 80 billion XRP to Ripple Labs
  • 9 billion to Jed McCaleb
  • 7 billion to Chris Larsen
  • 4 billion to other founders

One of the fundamental pillars of cryptocurrencies is that they do not have a central issuer or a regulating authority as those two characteristics would make it much more similar to a security that hence would be regulated.

Over time, Ripple has distributed the tokens to its users, but still holds a majority of XRP (around 58 percent) as it uses them as a natural part of its revenue model. This distribution gives enormous power to the company and its creators who could decide from one day to the next to flood the market with a massive sell of XRP and crush its price.

For this reason, the company announced publicly to move 55 billion XRP to escrow in May 2017, with a promise to not manipulate XRP market price. The transition was effectuated in December 2017. To add transparency to the use and sale of XRP, the company publish quarterly XRP market reports, accounting for how much is spent of the escrow fund, on what, and how much is returned to escrow.

But as we can see this requires a certain level of trust towards the company, and this trust is starting to wane.

Many investors believe that the 2019 price drop is mainly due to an increase in monthly XRP sales which prevented a price recovery. The company denies this, but according to a report by Coin Metrics, Ripple’s reports have differed from actual sales numbers at least twice and the unspent funds that should have been returned to the escrow were used differently.

According to Eric Turner, director of research at Messari:

“Ripple has been more aggressive in their selling lately…Last quarter’s $251.5 million was up almost 50% from the $169.4 million sold in Q1.”

This implies that the company violated the promise made in 2017 which pledged that Ripple would have access to a maximum of one billion XRP per month.

Control over Money Supply

Despite that Ripple has been on a mission to dispel the notion that it is responsible for the XRP currency it issues, this latest dose of reality indicates that the company has control over the token and its supply.

This sheds some light on an astonishing facet of the technical accomplishment that is Bitcoin. Bitcoin’s supply is strictly limited, no matter how many people use the network, how much its value rises, or how advanced is the mining equipment, there can only ever be 21 million bitcoins in existence. That is why Bitcoin is an asset that is well-suited for playing the role of a store of value.

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Bitcoin (BTC) Price Weekly Forecast: Remains Sell Until This Changes

  • There was a downside extension in bitcoin price below the $10,000 support against the US Dollar.
  • The price is currently consolidating and is facing many hurdles on the upside near $10,400.
  • There is a crucial bearish trend line forming with resistance near $10,400 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • There could be a strong upward move if the price surges above $10,400 and $10,500.

Bitcoin price is facing an uphill task near $10,500 and $10,680 against the US Dollar. BTC remains in a downtrend unless the bulls gain strength above $10,500.

Bitcoin Price Weekly Analysis (BTC)

In the last weekly forecast, we discussed the chances of more downsides in bitcoin price below $10,500 against the US Dollar. The BTC/USD pair did extend its decline and traded below the $10,200 and $10,000 support levels. The decline was such that the price even spiked below the $9,800 support level. Moreover, there was a close below the 100 simple moving average (4-hours) and the last swing low was formed near $9,757.

The price recovered above the $10,000 level plus the 23.6% Fib retracement level of the recent drop from the $10,964 high to $9,757 low. However, the upward move was capped near the $10,400 and $10,500 resistance levels. Moreover, the price struggled to gain momentum above the 50% Fib retracement level of the recent drop from the $10,964 high to $9,757 low.

Clearly, there is a strong resistance forming near $10,400 and $10,500. More importantly, there is a crucial bearish trend line forming with resistance near $10,400 on the 4-hours chart of the BTC/USD pair. Above the trend line, the next key resistance is near the $10,680 level and the 100 simple moving average (4-hours). It also coincides with the 76.4% Fib retracement level of the recent drop from the $10,964 high to $9,757 low.

Therefore, an upside break above $10,500 and $10,680 could spark a strong upward move in bitcoin. The next stop for the bulls could be near the $10,900 and $11,000 levels. Conversely, if the price struggles to gain traction above $10,400 and $10,500, there could be a fresh decline. An immediate support is near the $10,000 level. However, the main support is near the $9,800 area, below which the price could tumble.

Bitcoin Price Weekly Analysis (BTC)

Looking at the chart, bitcoin price is facing an uphill task near $10,400 and $10,500. Until there is a close above $10,500, the bears remain in action

Technical indicators

4 hours MACD – The MACD for BTC/USD is struggling to move into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Level – $9,800

Major Resistance Level – $10,500

Ethereum Price Weekly Forecast: ETH Trading Near Crucial Juncture

  • ETH price remained in a bearish zone and even tested the $180 support area against the US Dollar.
  • The price is currently correcting higher, but it is facing hurdles near $192 and $195.
  • There is a significant bearish trend line forming with resistance near $192 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • An upside break above $192 and $195 might trigger a solid recovery in the near term.

Ethereum price is currently facing a strong resistance against the US Dollar and bitcoin. ETH remains at a risk of more downsides until there is a daily close above $200.

Ethereum Price Weekly Analysis

This past week, there were bearish moves in ETH below the $210 and $200 supports against the US Dollar. Moreover, the price settled below the $200 level and the 100 simple moving average (4-hours). Additionally, there were bearish moves in bitcoin below $10,000 and ripple price settled below the key $0.290 support level. At the moment, the market is correcting higher, but facing many hurdles such as ETH near the $192 and $195 levels.

Ethereum price traded as low as $180 recently and it is currently correcting higher. It recovered above the 50% Fib retracement level of the recent decline from the $204 high to $180 swing low. However, the upward move was capped by the $195 resistance area. Moreover, the 61.8% Fib retracement level of the recent decline from the $204 high to $180 swing low acted as a resistance.

It seems like there is a strong resistance forming near $192 and $195. More importantly, there is a significant bearish trend line forming with resistance near $192 on the 4-hours chart of ETH/USD. The main resistance is near the $198 and $200 levels. The 100 simple moving average (4-hours) is also positioned near the $200 level. Therefore, an upside break above the $200 level might trigger a strong recovery.

Conversely, if there is no upside break above $195 or $198, the price could is likely to continue lower. An immediate support is near the $185 level. However, the main support is near the $180 level, below which there is a risk of a sharp decline in the near term.

Ethereum Price Weekly Analysis ETH Chart

The above chart indicates that Ethereum price is clearly trading near a crucial juncture at $192. If there is an upside break, the price could start a decent recovery. If not, there are chances of another bearish wave below $180.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is showing no positive signs in the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently near the 45 level, with a bearish angle.

Major Support Level – $180

Major Resistance Level – $198

CNBC Analyst Explains Why He is Bearish on Bitcoin

Earlier this week CNBC Fast Money host Brian Kelly said he is short-term bearish on Bitcoin price based on a drop in daily active addresses. Does this mean BTC will drop lower? 


Bitcoin bobs and weaves

Bitcoin has spent the last week bobbing and weaving at the $10K line. $10,350 stood as a stiff resistance level for nearly 3 days, then when overcome, $10,500 delivered the uppercut that smashed BTC back to a former resistance turned soft-support. 

Unsurprisingly, Bitcoin price failed to find firm footing at $10,350 and overnight the digital-asset tripped and fell below $10k again. 

At the time of writing, BTC is mustering up strength and attempting to have another go at the resistance level at  $10,200 but the lack of bull volume calls the sincerity of this move into question.   

Brian Kelly says, keep an eye on active addresses

Investor sentiment is growing increasingly bearish regarding Bitcoin price action and since the fall from $13,800 and repeated rejections in the $12k zone it seems a drop to low 9s and below is becoming a real possibility. 

CNBC Fast Money host Brian Kelly seems to agree. Earlier this week Kelly said Bitcoin has been in this correction for a while and the lack of “supporting fundamentals” is why the digital asset has failed to retake $13,000

Kelly explained that he assesses Bitcoin’s price action by keeping an eye on daily active addresses. Since June / July the 30 daily moving average for active daily addresses have dropped sharply.

BK says this metric is just as important as the daily and monthly active user rate for social media platforms. 

He posits that this data supports his belief that Bitcoin’s price “got ahead of itself” and is cooling off after a high energy parabolic run from $4,000 to $13,800.

With this said, Brian believes that there will be a chance for investors to buy Bitcoin as what he describes as a “generational buy” but he doesn’t consider the current price point a bargain.

When asked to elaborate on this “generational buy”, Kelly said: 

Number 1 we will see the price going down and active addresses going up. That’s what we saw in December and January. We saw the price continuing to crash down and active the activity on the network was really increasing.

Second thing is sentiment, in terms of does everyone think Bitcoin’s dead, again? When people start saying that then I’ll get real interested. 

But what if this time it’s different? 

When asked whether or not things could turn out differently this time, Kelly conceded that the growing number of institutional investors trading Bitcoin derivatives and these institution’s don’t necessarily represent a ‘spot address’ like a bank account.

This means that Bitcoin’s price action could spike in either direction without there being a noticeable difference in daily active addresses. This could impact Bitcoin’s future price action.

Do you think Brian Kelly’s tactic of monitoring active Bitcoin addresses is accurate? Share your thoughts in the comments below! 


Images from Shutterstock, Twitter: @CNBCFastMoney

 

Binance KYC Hack: Exchange Offers Lifetime VIP Compensation for Victims

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Binance KYC Hack: Exchange Offers Lifetime VIP Compensation for Victims

binance-responds-to-kyc-hack-offers-lifetime-vip-compensation-for-victims

The world’s leading cryptocurrency exchange Binance has announced a compensation plan for victims of the KYC hack that surfaced earlier in the month. 

Lifetime VIP for Victims

According to the official blog post published on Aug. 23, the exchange is offering a lifetime Binance VIP membership to users who were affected by the KYC hack. The membership will include preferential trading fees, support and “more services,” with the exchange encouraging users to contact the exchange about their possible security breach. 

Binance calls the investigation into the hack “ongoing,” and says that they are still pursuing leads in relation to the source of the images that surfaced online matching the exchange’s user information. 

Binance also puts some of the responsibility for the hack on third-party vendors and points out the inconsistencies between the leaked KYC data, 

During our review of the leaked images, there were multiple photoshopped or otherwise altered images which do not match the KYC images in our database and are being accounted into the comprehensive investigation. In addition, every image processed through Binance for KYC purposes is embedded with a concealed digital watermark, which was notably absent from all of the leaked images.

In a similar situation, crypto platform Huobi also pointed to hackers using third-party vendors to obtain client information, as opposed to a direct breach in the exchange. 

Binance calls security their “top priority,” and is committed to “protecting our users in all possible circumstances.” The exchange claims to use an AI-based facial verification function first introduced in 2018, while upgrading their indexing of KYC data in 2019. 

Huobi Processed 50% of All PlusToken Withdrawals This Month: Report

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Bitcoin History Part 16: The First Mt. Gox Hack

Bitcoin History Part 16: The First Mt. Gox Hack

No one remembers the first Mt. Gox hack. It was a small sum, even by 2011’s standards, and the exchange reimbursed all users. The incident was to prove significant, however, for it set in motion a string of attacks on other bitcoin platforms that began the very next day. By the time the dust had settled six weeks later, four separate thefts had occurred, culminating in the loss of more than 178,000 bitcoins.

Also read: Bitcoin History Part 15: Silk Road Is Born

The First Bitcoin Exchange Hack

Summer 2011 was a heady time for the internet. Twitter was still good, deplatforming had yet to become a thing, and free speech was taken for granted. Back then, you could say what you liked, how you liked, to whoever you liked, and if that person didn’t like it, they could turn off their computer and go for a long walk in the sunshine, which solved the problem. Anyone with any sense wasn’t walking anywhere in mid-2011, however, because everything that mattered was happening on the internet, and it was riveting.

Bitcoin History Part 16: The First Mt. Gox Hack

For purveyors of the illicit, the insurrectionary, and the innovative, June 2011 might just go down as the most exciting month on the internet yet. It began with Gawker blowing Silk Road wide open on June 1, and would culminate, on June 25, with hacker group Lulzsec releasing its last data dump, comprising millions of passwords and sensitive data from scores of corporations. Sandwiched in between all this chaos were two noteworthy bitcoin hacks that weren’t of Lulzsec’s doing. The first, on June 19, was the first exchange hack in Bitcoin history, with the second occurring a day later as a direct result of this incursion.

Mt. Gox Gets Goxxed

Before Mt. Gox became so synonymous with failure as to spawn a verb describing the act of getting rekt, it was a successful exchange that was at the heart of everything that was happening in Bitcoin. It was to suffer its first hack, however, a little over a year into its life as a bitcoin exchange, and just three months after Mark Karpeles had taken over its operations. The incident occurred as a result of this ownership change, which entitled the former owner to a share of revenue, and with the administrator access to audit their earnings.

Bitcoin History Part 16: The First Mt. Gox Hack

On June 19, someone hacked into the admin account and generated vast amounts of BTC on the Gox orderbook. Doing so drove the price of BTC from dollars all the way down to a cent. The hackers then bought the cheap BTC with their own accounts and withdrew their cheaply gotten gains. They weren’t the only ones to profit from the BTC flash sale going on, with other Mt. Gox users making the most of the opportunity.

‘I’m Kevin, Here’s My Side’

In an account of how they capitalized on the mishap, Bitcointalk user “toasty” wrote on June 20, 2011: “I’m Kevin and I’m the guy who bought 259,684 BTC for under $3,000 yesterday. I really wanted to keep this as quiet as possible, but I don’t feel I can anymore. Here’s my side of what happened.” He went on:

“I was watching, like many of you, a gigantic sell order burning through the bids. Mt Gox doesn’t execute trades very quickly, so we were watching this huge order slowly eat up every buy order on the books. The price started at around $17.50, and within minutes was below $10. At this point, I realized this wasn’t merely a large seller willing to accept some losses. This was someone attempting to crash the market by selling a huge percentage of the market’s total bitcoins at once.”

Despite the exchange “running slower than molasses at the time,” toasty eventually “got a buy order in, offering to buy as many bitcoins as I could for $0.0101. The site stopped responding completely for a while, probably from so many people hitting refresh to see what was going on. When I got back in, I saw in my account:

06/19/11 17:51 Bought BTC 259684.77 for 0.0101

“I had just purchased over 250,000 bitcoins for $2613. At the trading price immediately before this large sell order happened, that number would have been worth nearly $5 million. After I regained my breath, I tried to figure out what to do.”

Two Strikes in Two Days

Despite withdrawal limits that were meant to be in place, both toasty and the real hacker managed to withdraw significant quantities of coins – toasty alone made off with 643 BTC. There followed an intense debate on the Bitcointalk forum about who was to blame for the theft, and whether toasty was entitled to his bargain bitcoins. The value of the 2,643 BTC Gox lost in the hack was valued at $47,000 at the time, and the exchange made full restitution to users who lost funds in the incident. It was powerless, though, to prevent a second hack which occurred within 24 hours of the breach.

On June 20, 2011, as toasty was confessing to his opportunistic trade and pondering what to do with his riches, the Bitcoin community was rocked by a second strike. Users of wallet service Mybitcoin.com reported that their accounts had been breached and their BTC stolen. It quickly became clear that the Mt. Gox database had been accessed during the hack, and that identical passwords and usernames on Mybitcoin had been plundered.

The pseudonymous operator of Mybitcoin acknowledged: “We’ve concluded that around 1% of the users on the leaked Mtgox password file had their Bitcoins stolen on MyBitcoin.” In total, 4,019 BTC worth $72,000 were stolen, with Mybitcoin covering their losses.

Bitcoin History Part 16: The First Mt. Gox Hack

The Summer of Lulz

June 2011 was a dramatic month, as the world began awakening to Bitcoin, set to a montage of Lulzsec hacks complete with heavy trolling of the three-letter agencies that were on their tail. The action didn’t let up either, for the next month there was more drama in these intersecting worlds (Lulzsec accepted donations in BTC, and were as enamored with bitcoin as many bitcoiners were with them). On July 18, the Anonymous-affiliated group exited retirement to hack the website of British newspaper The Sun, planting a fake story that owner Rupert Murdoch had died after ingesting palladium.

On July 26, Polish exchange Bitomat lost its wallet file containing 17,000 BTC. Three days later, Mybitcoin, the wallet service that had been breached along with Mt. Gox in June, exit scammed with 154,406 BTC, only half of which were ever recovered. To cover its 17,000 BTC losses, meanwhile, Bitomat was put up for sale, and in August 2011 a buyer was found: Mark Karpeles. The Mt. Gox CEO agreed to cover its debt, and welcomed Bitomat’s users to his Tokyo-based exchange. The deed was performed partly to restore faith in the still fragile Bitcoin ecosystem. Subsequent bitcoin hacks involving Mt. Gox would prove larger and harder for its CEO to absorb, but all that was still years away.

Bitcoin History is a multipart series from news.Bitcoin.com charting pivotal moments in the evolution of the world’s first cryptocurrency. Read part 15 here.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

Kai Sedgwick

Kai’s been playing with words for a living since 2009 and bought his first bitcoin at $12. It’s long gone. He’s previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs.

Crypto News From the German-Speaking World: Week in Review

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.