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‘Central Bank Digital Currencies Could Destabilize the Global Economy’ Says Bank for International Settlements (BIS)

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While the central banks of some countries are hoping to be a part of the virtual currency revolution, the Bank for International Settlements (BIS) is concerned about the repercussions of going digital.

A cashless society is definitely the way of the future, a future that some governments and banks are trying to be a part of. Central bank digital currencies (CBDCs) may be an abomination of decentralized cryptocurrencies, but it is happening.

Sweden’s Riksbank is hoping to offer its e-Krona and the Bank of England has a cryptocurrency unit to help it along its virtual currency journey.

BIS Voices its Concerns

However, according to Business Insider UK, the Bank for International Settlements (BIS) has stated that these bank-issued virtual currencies could have dire consequences for the global financial system.

A report written by Klaus Löber, who is a Senior Advisor at the European Central Bank (ECB) and Aerdt Houben, who is the Director of the Financial Stability Division at De Nederlandsche Bank (DNB), details the negative impact it could have on the economy.

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Goldman Sachs Warns Of Bitcoin Going Under $6000

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Goldman Sachs analysts panicked Sunday, March 12 as Bitcoin’s volatility caused them to forecast a return to recent lows below $6000.

Goldman Fears ‘Impulsive Decline’

In a note to clients, the global giant’s technical analysis team led by Sheba Jafari pointed the blame at market uncertainty thought to have begun from Mt. Gox trustee Nobuaki Kobayashi’s recent sell-offs.

Having broken below $9210 Sunday, ultimately reaching closer to $8400, Bitcoin faced a potential freefall to $5922, the team claimed, with little support in between.

“The break is significant as implies potential for a more impulsive decline,” Jafari wrote quoted by Business Insider.

The next meaningful level is down at 7,687-7,198; includes the 200-dma and a 1.618 target off the high.

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South Carolina Declares Cloud Mining Contracts to Be Securities

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The Attorney General of South Carolina has served a cease and desist order on Genesis Mining. In documents filed before its Securities Commissioner, it has declared cloud mining contracts to be securities, in a move that could have repercussions beyond the confines of the Palmetto State.

Attorney General Forecasts Dark Clouds for Mining Contracts

Cloud mining contracts enable individuals to purchase hashing power without the need to get their hands dirty. Rather than have to order, install, and maintain a bunch of miners, capacity can be purchased from a datacenter that’s set up to mine crypto. Genesis Mining is one of the most well established operators in the space. It, as well as companies such as Hashflare, has been plying its trade for years. Now, a cease and desist order looks set to put paid to that, in the state of South Carolina at least.

“Join over 1,000,000 people with the world’s leading hashpower provider,” proclaims the Genesis website. “It’s super simple – Your mining rigs are already set up and running. As soon as you’ve set-up your account you can start to earn your first coins from our bitcoin cloud mining service!” The company operates a datacenter in Reykjavik, Iceland. But in a filing dated March 9, South Carolina Attorney General’s Office has ordered Genesis Mining and Swiss Gold Global to stop targeting residents in the state.

The Company That Lives in the Cloud

Like many web companies, Genesis is everywhere and nowhere. The administrative proceeding document directed to the Securities Commissioner of South Carolina lists Genesis’ last known address as Chinachem Century Tower in Hong Kong. This seems to be a common registration address for businesses and appears in the Offshore Leaks Database that publishes findings from the Panama Papers. Under a section headed Findings of Fact, the Attorney General’s filing states:

Genesis Mining offers mining contracts for six cryptocurrencies: Bitcoin, Dash, Ethereum, Litecoin, Monero, and Zcash, each of which entitles an investor to…a “Mining Contract”…in exchange for investing in a Mining Contract, Respondent Genesis Mining engages in a certain amount of computational effort on behalf of the investors.

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Ripple CEO: Bitcoin ‘Is the Napster of Digital Assets’

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Ripple CEO Brad Garlinghouse recently claimed that cryptocurrencies are solving real-world banking and remittance problems — with future generations set to build and improve on the foundation laid by blockchain technology. In doing so, he also stated that Bitcoin “is the Napster of digital assets.”

Inapt Comparisons

Though the Ripple CEO says that comparisons between his cryptocurrency and Bitcoin are ultimately compliments, he also took the chance to compare the dominant cryptocurrency to peer-to-peer file-sharing internet service Napster — which was revolutionary for its time but failed to maintain any sort of lasting relevance.

Speaking to Bloomberg Asia ahead of his participation in the Millennium 2020 conference in Singapore, Garlinghouse stated:

Some may look back at Bitcoin and say that it is the Napster of digital assets. What I mean by that is that Napster was the first to digitize music and demonstrate that you can do a lot of cool things with that. But ultimately they were circumventing trademark laws, they were circumventing royalty payments and then government stepped in and Napster wasn’t successful. But Spotify, iTunes, and Pandora were successful.

I think what you will find is that maybe the next generation of digital assets will end up solving some of the problems that Bitcoin set out to solve.

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Japan Urges G20 Officials to Introduce Unified Crypto Regulation

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Regulating cryptocurrencies can be done in many different ways. Japan’s government has paved the way for a positive approach in this regard. The same country is now urging the G20 to maintain a positive approach as well. However, they do want the G20 to address potential money laundering issues.

The G20 and Crypto Regulation

It is not the first time the G20 and cryptocurrency regulation is mentioned in the same breath. French and German officials urge this governing body to take a harsh stance against this new form of money. The lack of official regulation and accountability is considered to be a big threat to financial stability. Cryptocurrency allows everyone to be their own bank, which poses challenges and risks.

At the same time, cryptocurrency introduces a lot of new opportunities. Making the most of those potential changes is equally as important. Finding the middle ground between over-regulation and allowing for innovation is not all that easy. In fact, it is a regulatory puzzle the G20 will have to address a lot sooner than they might like.

Japanese officials want to have some form of crypto regulation by the G20 as well. However, their focus is more on preventing money laundering efforts altogether. Protecting consumers is of great importance as well. None of this indicates the organization wants to ban cryptocurrencies and limit the trading possibilities. Instead, they will focus on the actual matters at hand, while still allowing these new currencies to thrive accordingly.

Determining the Fate of Cryptocurrency

Building a proper regulatory system for cryptocurrency is very difficult. It isn’t easy to do in one country, let alone for the G20. As powerful as this entity may be, every country tends to approach these matters differently. Finding common ground has proven to be a hassle more often than not, regardless of the topic at hand. One common feeling among the member states is how too strict regulation for cryptocurrency would have an adverse effect first and foremost.

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World’s First Bitcoin Monument Unveiled in Slovenia

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The Slovenian city of Kranj has installed a giant circular Bitcoin logo near the city center, making it the first official monument dedicated to the world’s first decentralized cryptocurrency.

Slovenian City Erects Bitcoin Monument

Slovenia has been known as a hot spot for Bitcoin and cryptocurrency-related activities for several years now. It was the original home of the Bitstamp exchange, one of the most popular cryptocurrency trading platforms in the world.

Now, a giant installation of the famous Bitcoin ‘B’ logo has been placed by city authorities at one of the roundabouts near the center of the city of Kranj.

The metal construction was created by Aleksander Frančeškin and Selman Čorović and paid for by the Slovenian-based tech design company 3fs and the Luxembourg-based Bitstamp.

It appears that Bitstamp, one of the oldest cryptocurrency exchanges in the space today, remains a staunch supporter of Bitcoin, paying homage to the world’s first cryptocurrency.

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Litecoin Price Analysis: LTC/USD Consolidates above $170?

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Litecoin price is trading in a range above the $170 level against the US Dollar. LTC/USD may rise in the short term, but it is facing sellers near $185 and $195.

Key Talking Points

Litecoin price is currently consolidating losses above the $170 level (Data feed of Kraken) against the US Dollar. There is a contracting triangle forming with resistance at $192 on the hourly chart of the LTC/USD pair. The pair must stay above the $170 support, else there is a risk of a downside break.

There was no upside break above the $190 and $195 resistance levels yesterday in litecoin price against the US dollar. The LTC/USD pair declined and moved below the $180 support.

The pair also settled below the $180 level and the 100 hourly simple moving average, which is a bearish sign. The recent low formed was at $173.93 and the price is currently trading in a range.

It seems like the price is consolidating losses above the $170 level, but it is also facing many hurdles on the upside. An initial resistance is around the 38.2% Fib retracement level of the last decline from the $192.80 high to $173.93 low.

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Ethereum Classic Price Technical Analysis – Can ETC/USD Hold $20?

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Key HighlightsEthereum classic price is finding it hard to hold a major support at $20.00 against the US dollar. There are two key bearish trend lines forming with resistance at $21.00 and $23.00 on the hourly chart of the ETC/USD pair (Data feed via Kraken). The pair must break above the $23.00 resistance and settle above the 100 hourly simple moving average.

Ethereum classic price is struggling to recover against the US Dollar and Bitcoin. ETC/USD has to move above the $21.00 and $23.00 resistances to gain upside momentum.

There was no substantial recovery above $24.00 in ETC price during the past few days against the US dollar. The price tested the $16.50-20.00 support zone on many occasions, and succeeded in avoiding declines. It is currently trading just above the $20.00 and is consolidating losses. It seems like the price is finding is very hard to recover above the $21.00 resistance area in the short term.

On the upside, there are two key bearish trend lines forming with resistance at $21.00 and $23.00 on the hourly chart of the ETC/USD pair. The 23.6% Fib retracement level of the last drop from the $31.18 high to $19.61 low is near $22.34 to act as an intermediate resistance. Once there is a proper break above $22.35 and $23.00, there could be more gains. The next resistance could be around 50% Fib retracement level of the last drop from the $31.18 high to $19.61 low around $25.40.

Moreover, the 100 hourly SMA is sitting near $21.00. A break above the $21.00 level and 100 SMA could be a positive sign in the short term. On the downside, the price has to stay above $20.00 and $16.50 to avoid further declines.

Hourly MACD – The MACD for ETC/USD is mostly flat in the bearish zone.

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Services Bridging Cryptocurrencies and Investors Are Emerging

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In the week starting Monday, March 5, some topical services emerged to bridge cryptocurrencies and investors.

The first service is that the U.S. company Coinbase has announced that it will develop and launch its own cryptocurrency index fund with a large market capitalization. Coinbase will list this cryptocurrency index fund on its own digital currency exchange GDAX and prepare for investment trading in the index fund. Four digital currencies will be included in the index fund, and they will be weighted by market capitalization. This means that at its launch the index fund will be comprised of 62% Bitcoin, 27% Ethereum, 7% Bitcoin Cash, and 4% Litecoin. Investors can easily invest in expected-to-rise cryptocurrencies by purchasing assets in Coinbase’s cryptocurrency index fund.

Another similar service will be provided by Grayscale Investments Inc., which had previously been selling investments in Bitcoin funds to institutional investors, and which has now decided to newly establish four new cryptocurrency funds. The four cryptocurrencies are Bitcoin Cash, Ethereum, Litecoin, and Ripple. Investments in these funds will be sold to qualified accredited investors who possess a certain level of investment experience and asset size. Investors can invest in one of these Grayscale Investments funds in the expectation that the value of the fund will increase without having to manage the cryptocurrency fund themselves.

Originally, it was important that the owners of some cryptocurrency could control their own assets. However, the entities such as institutional investors and hedge funds that are expected to enter cryptocurrency trading in the future will not necessarily have an appropriate cryptocurrency storage system, therefore it is important that they have such capabilities as a fund that stores the cryptocurrency for them on their behalf.

It seems that the business of providing services that enable existing investors to access cryptocurrencies more conveniently will significantly grow in the future.

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Coincheck Clients Compensated from Crypto Heist, XEM Soars

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When a crypto exchange or digital wallet provider is compromised, the digital loot is often moved away so fast that there is no chance of recovery. This is what happened to Coincheck in January when 523 million XEM tokens were pilfered from the exchange. As promised, however, the Tokyo-based exchange has just completed reimbursing its clients for the loss.

According to a report in the WSJ, Coincheck claims that it has completed the compensation it promised to its customers for the loss. A total of 46.3 billion JPY ($433 million USD) was spent from the company’s own funds to reimburse 260,000 customers that stored NEM on the exchange.

Coincheck executives apologizing for the hack.NEM Accounts Refilled

Customers received XEM at a rate of 88.549 JPY per token as previously advised by the exchange. This equates to approximately $0.83, which is almost double NEM’s current trading price and is closer to that at the end of January when the hack took place.

A spokeswoman for the exchange said that the total payout was completed on Monday. Trading has also resumed at Coincheck this week after a month’s suspension to reevaluate security protocols. A number of customers took to social media to express their relief.

Japanese authorities are still investigating the incursion at the exchange but have yet to report any conclusions. Regulators are still waiting for Coincheck to acquire the appropriate licenses and improve its governance and controls. Hong Kong exchange Binance, meanwhile, has offered a bounty for any information on a recent attempted hacking and phishing effort that was thwarted.

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