Skip to main content

CoinDesk Crypto

Romanian Barber Arrested for Allegedly Stealing $620K in Crypto

5 years 7 months ago

A barber in Romania suspected of stealing $620,000 in cryptocurrency from an unnamed company in the Cayman Islands has been apprehended.

  • Ionel Roman, 38, from the southern city of Craiova, was arrested on March 5, charged with hacking, IT fraud and money laundering.
  • According to a statement by prosecutors, Roman launched a cyberattack on a Cayman Islands-based company, described as “the seventh largest cryptocurrency operator in the world,” in late Janaury.
  • The barber then transferred $620,000-worth of crypto to several people who paid him in fiat currency.
  • Roman withdrew this money in numerous sums of 10,000 lei ($2,449) circumventing the need to provide identity credentials, according to the Directorate for Investigating Organized Crime and Terrorism (DIICOT).
  • DIICOT seized 10,800 lei from Roman’s home along with various items of electronic equipment.

See also: EXMO Exchange Taps Ledger Vault to Help Secure User Assets After 2020 Hack

Related Stories

Argo Blockchain Takes 25% Stake in $40M Crypto VC Fund

5 years 7 months ago

Crypto venture capital firm Pluto Digital Assets has raised a $40 million fund with U.K.-listed Argo Blockchain (LON: ARB) as its lead investor.

  • In an announcement Wednesday, Pluto said it now has $50 million in assets under management after launching earlier this year. Argo Blockchain will be maintaining a 25% stake in the new fund with an investment of $10 million.
  • Pluto’s fundraising effort was and joined by two other publicly traded firms: Pires Investments Plc (LON: PIRI) and Riverfort Global Opportunities Plc (LON: RGO).
  • Pluto will use the funds for “incubating projects, taking equity positions and holding strategic and treasury positions in digital assets,” the firm said in a press release.
  • According to Pluto’s website, the London-based firm holds positions in BTC, ETH, AAVE, DOT, KSM and LINK, along with a number of startup investments.
Related Stories

The Graph to Host Protocol Governance on Decentralized GitHub Alternative Radicle

5 years 7 months ago

Web 3.0 analytics and querying platform The Graph announced Radicle, a peer-to-peer software building stack, will host its governance protocol, the Graph Improvement Proposal (GIP) Process. All future protocol governance will also be hosted on Radicle, which is akin to a decentralized GitHub. 

  • The GIP process is meant to make sure protocol upgrades are frictionless and to allow the decentralized community and stakeholders to contribute to the overall development of the Graph protocol.
  • It lays out how contributors can propose an idea and provides a methodology for the The Graph Council, which governs The Graph Foundation’s Treasury, to assess not only if proposals are viable but also the level of community support from indexers, delegators, curators, and subgraph developers.
  • Radicle can be seen as a decentralized peer-to-peer version of a platform like GitHub, but without the middlemen or, ultimately, centralized control.
  • Radicle does not have any centralized servers and therefore cannot be unilaterally censored.
  • The Radicle protocol participants enable collaborative permissionless code, and the process of editing and merging code requests is decentralized.
  • According to a blog post announcing the development, “the GIP process includes both the stages and acceptance criteria that a proposal hits as it is fleshed out in The Graph’s Radicle repo.”
  •  “Radicle is putting developers back at the heart of code collaboration and providing an alternative to the centralized gatekeepers and data silos that control most git repositories today,” said Brandon Ramirez, co-founder at The Graph, in the blog post.
  • “This strongly aligns with The Graph’s vision of an open internet built on public infrastructure and was the natural choice for the GIP process.
  • The two projects have future plans to collaborate, including “storing subgraph repositories on Radicle and indexing Radicle projects using The Graph.”
  • “Radicle was designed with decentralized communities like The Graph in mind and its core properties of security, sovereignty, and permission-less nature make a great fit,”said Eleftherios Diakomichalis, co-founder of Radicle in the post.

Read more: Web 3.0 Infrastructure Blockchain ‘The Graph’ Now Live on Ethereum

Related Stories

Start9 Labs to Build on Its Self-Sovereign, Private Internet Solutions With $1.2M in Funding

5 years 7 months ago

Most people never even see the server that runs the internet network in their houses. But Start9 Labs is working to change that with its latest upgrades to the Embassy Server, a self-sovereign, private internet server and operating system for your home. 

It’s an ambitious project to make self-sovereign computing viable for consumers, but one that offers a way out of the centralized internet people know. 

To expand on their efforts, Start9 Labs recently closed a $1.2 million funding round spearheaded by Collider Ventures, Ten31 and Erik Voorhees, CEO of the decentralized exchange ShapeShift. The money will drive additional Embassy developments including additional apps for its decentralized app store, further open-source development by contributors and the “killer of all messaging apps.”

Related: Will Central Banks Invest in Bitcoin?

“Self-sovereignty in a digital age is impossible when all applications and data are served by a handful of centralized custodians,” said Voorhees. “Start9 is building an ambitious alternative and it’s arriving upon the world stage at just the right time.”

Creating a self-sovereign, private internet network

Start9 Labs’ Embassy server and operating system (OS) creates its own private internet network. It comes with its own operating system as well as an expanding range of services such as bitcoin transactions, messaging and password management that cut out middlemen and use the Tor network to communicate. 

Read more: Start9 Labs Pitches a Private At-Home Server. And It Works

Start9 Labs is not building on Web 2.0; rather, it is hijacking that existing infrastructure so people can run their own private networks. To build a new internet from the ground up would require a physical hardware device in every single home Hill told CoinDesk last year. The Embassy OS and server is hosted on Raspberry Pi delivered preset by Start9, or it can be set up on its own by any user, given the OS is open source. 

Related: Peer-to-Peer Crypto Trading Is Expanding Across the Developing World

What makes the Embassy interesting is it takes a generalized approach to running self-hosted software in an easy-to-use way. While terms such as “sovereign computing” and “self-hosted server” might seem opaque to the general public, the Embassy lets users set up a server and make it easy to use. It’s pretty much a plug-and-play device. 

Internet service providers (ISPs), such as Verizon, for example, have some of the most invasive views into, and surveillance of, network traffic on the networks they provide. They’re hard to escape because there are only a handful of companies in the U.S., for example, that offer internet services. 

Privacy and independence are hard to achieve in such an environment, particularly for people in authoritarian countries where private internet services would be a boon to its citizens. Self-sovereign computing offers one way around these methods of control. 

There aren’t huge profits to be made in this area, and that’s what makes the funding round important. It’s rare to see hundreds of thousands dollars being put behind an entirely new ecosystem like this. 

Where the Embassy is headed

Since launching in January 2020, the availability of services has only expanded. 

“The 0.3.x architecture is radically different from 0.2.x,” said Matt Hill, co-founder of Start9 Labs. “It introduces external drive support, such that Embassy users can choose which service to install on which drive and use as much space as they want. This also results in dramatically faster sync times.” 

A marketplace redesign will also allow users to search for new services by category, such as “Bitcoin/Lightning,” “Messaging,” “Storage,” “Social, and “Blockchains.” Start9 Labs’ software development kit makes it easy for anyone to package a service for distribution on the Embassy Marketplace, meaning Start9 will become less and less involved with the service roadmap. 

“For instance, both Monero and Haven will soon be available, thanks entirely to their enthusiastic communities,” said Hill. “We believe very strongly that people should be able to run whatever software they want to run on their own server.”

See also: Becoming Self-Sovereign: How to Set Up a Bitcoin Node, With Lightning

“Bitcoin’s vision of sovereignty is not complete without a computing platform that makes it easy to run a node alongside other self-hosted software,” said Ofer Rotem of Collider Ventures. “Start9 Labs has developed this platform with great [user experience], and is a great fit for our thesis and portfolio. We are excited by their progress so far, and for what’s to come.”

A hundred services by end of year

Hill expects upward of 100 services to be available on the Marketplace by the end of the year. He said the biggest deal of Q2 is Matrix, “the killer of all messaging apps.”

“Matrix is the holy grail of messaging: an open, federated protocol that can accommodate all the advanced messaging and voice/video features consumers are accustomed to, but with no third-party servers, no middlemen, no chance of corruption in the form of back doors or censorship, totally self-served and accessible over a private, end-to-end encrypted, onion-routed channel,” said Hill. 

Start9 Labs is also planning to introduce Tor relay-node functionality into the Embassy itself, meaning users can choose to have their Embassy serve as a Tor relay node. That would allow users to get fast initial load times when connecting to the websites of their Embassy while simultaneously enhancing the robustness and efficiency of the Tor network itself. 

“We are about to flood the Tor network with thousands of new relay nodes, making Tor bigger and faster than ever,” said Hill. 

Related Stories

Market Wrap: Bitcoin Rallies Near $58K, Stocks Soar to Record Highs

5 years 7 months ago
  • Bitcoin (BTC) trading around $57,572.97 as of 21:00 UTC (4 p.m. ET). Climbing 2.11% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $54,323.61-$57,632.81 (CoinDesk 20)
  • BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.

The bitcoin market is back in bull mode but for one key attribute, almost like a missing tooth: low trading volume. 

Bitcoin’s price on Thursday extended its winning streak to a seventh day as a renewed appetite for risk-taking in traditional markets sent U.S. stocks to new record highs. The catalyst was a U.S. government report on Wednesday showing a slower-than-expected inflation rate in February, which assuaged investors’ concerns that fast-rising consumer demand might send prices shooting higher as the economy reheats.

Read more: Beeple NFT Sold for Record-Setting $69.3M at Christie’s Auction

Related: Start9 Labs to Build on Its Self-Sovereign, Private Internet Solutions With $1.2M in Funding

“Risk sentiment in global markets has been very upbeat in the aftermath of yesterday’s U.S. inflation data,” Joel Kruger, cryptocurrency strategist at LMAX Digital, told CoinDesk. “This has helped to offer additional support to the bitcoin market.”

The one giant asterisk is that spot-market activity has remained muted amid the latest rally, with trading volume on eight major spot crypto exchanges CoinDesk tracks staying relatively flat for more than two weeks.

“There aren’t as many sellers right now after the price was very supported in late February down into the $44,000 area,” Kruger said. “You continue to have buyers, though the buying just hasn’t been as heavy. Overall, that creates upwards pressure.”

Kruger warned that investors should stay cautious in the short term before the Federal Reserve’s meeting next week, when U.S. central bank officials led by Chair Jerome Powell are expected to clarify their latest thinking on monetary policy. 

Related: Jamaica to Pilot CBDC Later This Year

Read more: WisdomTree Files for a Bitcoin ETF

The largest cryptocurrency has been cast by digital-market analysts as both an inflation hedge and a risky asset, but over the past week the price has just kept going up, seemingly indifferent to the swings witnessed on Wall Street. 

“I think bitcoin is going to be sensitive to periods of downturn in stocks right now because it is still a maturing asset and therefore an emerging asset,” Kruger said. “This gives it properties at the moment that are still very much risk correlated.”

Ether almost flat; bitcoin-ether correlation weakens

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up on Thursday, trading around $1,812.13 and climbing 0.26% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

The correlation between bitcoin and ether is trending downward again after rising for about two weeks starting Feb. 21. Compared with the same time period a year ago, the correlation between the No. 1 and No. 2 cryptocurrencies by market capitalization is slightly weaker, dropping to about 0.74 from 0.94.

Read more: ‘Keanu’ Explained: What It Means to Merge Two Ethereum Projects 

Yves Renno, head of trading at crypto payment platform Wirex, pointed out that although bitcoin’s share of the overall cryptocurrency markets has climbed over the past couple days, its market dominance currently stands at just 62.3%, down from a recent high around 72% in January.

“Altcoin traders are taking profits and institution cash is still flowing mainly into bitcoin,” Renno said.

Other markets

Digital assets on the CoinDesk 20 are mixed Thursday. Notable winners as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

  • cardano (ADA) – 2.09%
  • xrp (XRP) – 1.72%
  • eos (EOS) – 1.39%

Equities:

  • Asia’s Nikkei 225 closed in the green 0.60%.
  • The FTSE 100 in Europe closed up 0.17%.
  • The S&P 500 in the United States ended higher by 1.04%.

Commodities:

  • Oil was up 2.53%. Price per barrel of West Texas Intermediate crude: $66.07.
  • Gold was in the red 1.54% and at $1,724.93 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield climbed Thursday and was in the green 1.522%.
Related Stories

Jamaica to Pilot CBDC Later This Year

5 years 7 months ago

Jamaica is planning to launch a central bank digital currency (CBDC) in 2022. 

While giving the annual National Budget Debate address before the national legislature on March 9, Jamaica’s Minister of Finance, Nigel Clarke, announced the CBDC will be piloted in December ahead of launch.

The government of Jamaica views the accelerated transition to a digital society and economy as vital to economic recovery following the COVID-19 pandemic, Clarke said, adding that a CBDC can greatly improve financial inclusion by making financial services available to the Caribbean nation’s unbanked population. 

Related: Start9 Labs to Build on Its Self-Sovereign, Private Internet Solutions With $1.2M in Funding

“It is therefore the policy of this government, Madame Speaker, to introduce a central bank digital currency,” Clarke said, addressing the Speaker of the House. 

He also clarified that a CBDC issued and backed by the central bank of Jamaica (BoJ) is not a cryptocurrency. 

“It is not to be confused with cryptocurrency, which is privately issued and not backed by a regulatory authority,” Clarke said. 

The CBDC will be legal tender and interchangeable with the Jamaican dollar in cash on a one-to-one basis, according to Clarke.

Related: Market Wrap: Bitcoin Rallies Near $58K, Stocks Soar to Record Highs

Last month, the governor of the Bank of Jamaica, Richard Byles, said the bank had been laying the groundwork for cabinet approval of the initiative for the last couple of months. At Tuesday’s budget debate, Clarke said “procurement of the system” had been approved by the cabinet the previous day. 

Jamaica has been working on a CBDC project since early 2020. In May 2020, the Bank of Jamaica tweeted it is researching CBDCs internally as it introduced its new fintech regulatory sandbox. The following month, the bank formally invited interested CBDC providers to “develop and test potential CBDC solutions” in its sandbox.

According to Clarke, with the government-issued CBDC, households and businesses will be able to make payments and store value at no cost, while customers can do business with other people directly using their mobile phones, bringing “tens of thousands of Jamaicans” into the formal financial system. 

“You’re going to be able to pay for the sky juice, Madame Speaker, with your phone,” Clarke said, referring to the colorful shaved ice beverage sold by street vendors in Jamaica.   

Related Stories

WisdomTree Files for a Bitcoin ETF

5 years 7 months ago

Exchange-traded fund (ETF) giant WisdomTree has applied to launch a bitcoin ETF, becoming one of many firms to apply for an ETF by filing an S-1 Form with the U.S. Securities and Exchange Commission.

WisdomTree intends to list the shares of the ETF on Cboe’s BZX Exchange. NYDIG applied in February, Valkyrie applied in January, and VanEck applied in December of last year. So far, VanEck has been the only couple to also file a Form 19b-4, kicking off the SEC’s regulatory review process. 

Grayscale may soon be in the process of either applying for a new bitcoin ETF or converting Grayscale Bitcoin Trust into an ETF as it seeks to hire nine ETF specialists. The digital asset investment firm, which is owned by CoinDesk parent company Digital Currency Group, refused to confirm that it is working on an ETF. 

Related: ‘I Guess I Just Don’t Understand …’ Enthusiasts React to $69M Beeple NFT Sale

In June 2020, WisdomTree applied for an ETF that would put 5% of assets into bitcoin futures contracts.

Related Stories

Tron Founder Beaten to Winning Beeple Bid by Mystery Buyer

5 years 7 months ago

Justin Sun almost won the Christie’s auction of a non-fungible token (NFT) that sold for $69.3 million but was outbid in the final moments, a spokesman for the Tron founder said.

Bloomberg reported Thursday afternoon that Sun was the winning bidder in the auction of an NFT tied to a digital work by the artist known as Beeple.

But Tron’s Roy Liu told CoinDesk that Sun did not win the auction, despite bidding $60 million as the clock wound down. “He was outbid by another buyer [at the] last minute,” Liu said via Telegram message.

Related: Be Aware: Crypto Scam Apps Are Lurking in App Stores

(A buyer’s premium accounts for the difference between the winning bid of $60.25 million and the $69.3 million sale price.)

“NFT is definitely a revolution to the art industry for our generation,” the Tron spokesman said. “Both Justin and Tron Foundation are super excited for the technology and will heavily support the ecosystem around that.”

Christie’s auction specialist Noah Davis declined to comment when reached by phone.

Related Stories

Bitcoin Leaves Social Media Stocks ‘in the Dust’ With Market’s Inflation Pivot

5 years 7 months ago

Bitcoin (BTC) is proving its flexibility as an investment, rising along with tech and social-media stocks when those securities are rallying and still managing to eke out gains when traditional-market investors suddenly go cold on the technology trade, according to ByteTree Chief Investment Officer Charlie Morris.

The secret? Bitcoin’s investment narrative deftly shifted toward its potential use as an inflation hedge as a risk-off mood in recent weeks on Wall Street triggered a retreat from tech stocks and related investments such as Cathie Wood’s ARK Innovation exchange-traded fund.

“Bitcoin enjoys the current macroeconomic environment as it is a hard asset that benefits from rising inflation,” Morris wrote Wednesday in a weekly newsletter. “It also likes risk-on conditions, which are reflected by rising bond yields. In contrast, tech prefers risk-on conditions when inflation is low, often described as ‘goldilocks.'”

Related: Be Aware: Crypto Scam Apps Are Lurking in App Stores

The discussion fits into the broader investment questions surrounding bitcoin, a 12-year-old asset (and technology) whose price seems to just keep going up. It’s nearly doubled already this year after quadrupling in 2020 and doubling the year before that. Is it a digital version of gold? An alternative to government currencies? A commodity? A unit for peer-to-peer payment? A decentralized network? Just something to speculate on? Estimating its value or even simply trying to pinpoint its essence can be elusive.

Bitcoin has proven in the past to be remarkably correlated with social media stocks, according to Morris. So it might stand to reason that, recently, as the stocks have retreated amid concerns that higher bond yields might hit earnings or reduce the appeal of risky investments, bitcoin might take a hit as well.

Instead, investors pivoted to reemphasizing bitcoin’s potential worth as an inflation hedge, and prices for the cryptocurrency have continued to rise.

As of Thursday, bitcoin had gained for seven straight days, its longest winning streak this year, with prices currently around $57,500, just shy of the all-time high above $58,000 reached last month.

Related: What Would It Take for You to Switch to a Crypto Bank?

“I have long argued that bitcoin has links to tech and social media stocks in particular,” Morris wrote. “That’s hardly a revelation, nor controversial, because bitcoin is a network effect situation that rose from the internet.”

Will Bitcoin detach itself from tech? This is the most important question.

Charlie Morris, chief investment officer, ByteTree

Investors are now seeing bitcoin as both an inflation hedge and risk asset – a double positive that could break its correlation with tech stocks.

“Tech stocks are expected to make huge profits in the future. If those profits are inflated away, that’s less interesting than in a hard money environment,” Morris says. Bitcoin “benefits from rising inflation. It also likes risk-on conditions, which are reflected by rising bond yields.”

Related Stories

Weibo Suspends Huobi, Binance, OKEx Accounts After Bitcoin Surge

5 years 7 months ago

The Chinese social media platform Weibo suspended the official accounts of Huobi, Binance, OKEx and the upstart crypto exchange MXC on the platform at around 7:15 UTC (2:15 a.m. ET) on Thursday morning. Weibo said these accounts had violated laws and community rules.  

The suspension came several hours after news that bitcoin reached the $1 trillion market cap became the 10th-most popular topic on Weibo. Another topic about a semiconductor chip shortage leading to the bitcoin price surge became the 25th-most popular on Weibo at around the same time. Weibo has 511 million monthly active users, according to its latest quarterly report.

The ranking is determined by a number of factors, including likes, comments, searches and reposts generated by certain content over a 24-hour period, according to Weibo.  

Related: Be Aware: Crypto Scam Apps Are Lurking in App Stores

Chinese authorities do not ban bitcoin itself, but restrict the activities of centralized cryptocurrency exchanges. The government’s attitude towards bitcoin can be difficult to understand. While some regulators would characterize bitcoin as a threat to China’s financial stability, state TV also featured the cryptocurrency’s recent bull run.  

Weibo has shut off influential crypto accounts before. In 2019, the platform shut down the accounts of Tron founder Justin Sun and Binance executive Yi He. 

Read more: YouTube Suspends CoinDesk’s Channel (UPDATED)

Another Chinese social media platform, WeChat, permanently shut down several public accounts in 2018, claiming the accounts were creating content related to initial coin offering or promoting crypto trading.   

Related: What Would It Take for You to Switch to a Crypto Bank?

As press time, the official accounts of these exchanges’ chief executives remained accessible on Weibo.

Related Stories

People Keep Tokenizing Other Users’ Art. Here’s How Artists Can Protect Their Work

5 years 7 months ago

Art theft is nothing new: As long as artists have posted their work online, thieves have appropriated them to try and profit off others’ work. Now, non-fungible tokens (NFTs), in theory a tool to give artists greater control over their creations, might be making it easier for malign actors to sell other people’s art.

This matters, not least because there is real money at stake. NFTs continue to draw headlines, with one selling for nearly $70 million Thursday in an auction on Christie’s. Smaller sales on various platforms continue as well, with NFT creators selling everything from jokes in tweet format to pieces of art – including art they didn’t actually create. 

Numerous Twitter users have reported seeing their art appear on NFT platforms, minted by “fans” online.

Related: Be Aware: Crypto Scam Apps Are Lurking in App Stores

While NFTs may look like the WIld West, artists do have legal protections when their work is stolen, said Collins Belton, managing partner at Brookwood P.C. 

“There’s your standard copyright and [intellectual property] laws that apply to these things,” Belton said. Users who believe their art is being appropriated can try filing Digital Millennium Copyright Act (DMCA) takedown notices against the sites selling these NFTs, Belton said. 

The DMCA was passed in 1998 for the specific issue of addressing the dissemination of copyrighted material online. 

“If these content creators do own valid copyrights … then they could just go to these platforms and send them DMCA takedown requests. Eventually, people would decide it’s not worth dealing with right now,” he said. 

Related: What Would It Take for You to Switch to a Crypto Bank?

Olta Andoni, an attorney with Zlatkin Wong LLC and an adjunct professor at the Chicago-Kent College of Law, noted that artists or other copyright holders have to make sure they file these takedown notices to the right parties, whether that is to the creator of the NFT or to the platform facilitating the sale. 

Read more: State of Crypto: It’s Time to Talk About NFTs and Intellectual Property Law

“It is up to the platform to ensure that the transfer of rights between the artists and the creator still protects the artists’ rights,” she said.

Belton said that while he believes tokenizing others’ art is unlikely to last as a trend, NFTs as a unique unit will continue. 

“I don’t think selling isolated tweets of random 20-follower accounts is the future of this technology. Out of the absurd often comes real innovation. Just like CryptoKitties led to [NBA] Top Shot, I imagine tokenized tweets will lead to something else,” he said.

Legal protections

For those who do own the rights to the work they’re selling, it’s important to specify what it is they’re actually giving to buyers, Andoni said. For example, do buyers own the rights to the underlying art or just to a digital representation? And how can they resell the NFT or transfer the rights to it?

That could mean the platforms facilitating NFT sales have to structure their smart contracts to clearly include the rights that are being transferred. 

“If we do not have an agreement on what the creators are giving and what the buyers are buying, this space is not going to offer the benefits we expect to,” she said. 

Buyers and sellers should watch for both contractual and statutory rights, said Belton. 

At present, it is legal to sell physical artworks if you own or have purchased, for example, a painting, Andoni said. Under the first sale doctrine enshrined in copyright law, anyone can sell an artwork after they’ve purchased it, without the artist’s permission. However, this might not apply to NFTs, as they are intangible, not tangible works.

Read more: NFTs: A Legal Guide For Creators and Collectors

It’s not just art that is being tokenized, and users have more than just copyright law to watch out for.

Those creating NFTs should also watch out for the terms and conditions on the various services they use. Twitter, for example, would appear to prohibit others from permanently archiving tweets in its developer terms. 

It’s unclear whether or how the platform would enforce these rules when it comes to tokenizing tweets, particularly given Twitter CEO Jack Dorsey’s auctioning of his first tweet as an NFT.

“If you look at Twitter’s terms, there’s a pretty good argument that even Jack’s activity was probably prohibited,” Belton said. “Obviously he’s the CEO but … if you squint you could say it’s not a commercial use, it’s a personal use but I’m not really sure how strong that argument would be or should be.”

A Twitter spokesperson did not return a request for comment.

Related Stories

Institutional Crypto Startup FalconX Raises $50M in Round Led by Tiger, B Capital

5 years 7 months ago

Cryptocurrency trading startup FalconX on Thursday leveraged 12 months of staggering growth into a $50 million raise.

  • Now valued at $675 million, according to Bloomberg, FalconX trading volume increased 12 times over and its net revenue spiked 46 times in the past year, the company told CoinDesk.
  • Institutional investors contributed mightily to the growth, FalconX said. In a statement, it attributed the spike to “traditional allocators” who seek out “white glove services.” That’s a market positioned for continued growth, according to the round’s co-leader Tiger Global Management.
  • B Capital Group co-led the round with participation from Accel, Accomplice VC, American Express Ventures. Coinbase Ventures, CMT Digital, Flybridge Capital Partners, Lightspeed Venture Partners and Fidelity affiliate Avon Ventures.
  • “We believe FalconX is positioned to be an industry leader in the institutional cryptocurrency market with many years of sustainable and profitable growth ahead,” said Scott Shleifer, a partner at Tiger Global.
Related Stories

Binance Has No Plans to Go Public, CZ Says

5 years 7 months ago

Binance CEO Changpeng “CZ” Zhao said the world’s largest cryptocurrency exchange has no plans to follow Coinbase’s path and go public anytime soon.

Speaking to CoinDesk TV in a wide-ranging Thursday morning interview, the CEO said his exchange is comfortable with its cash reserves and growth figures and sees no reason to rock the boat with an initial public offering in the near future.

“We’re not really short on funds. We’re surviving OK and we’re growing very healthily and organically so we don’t have any plans for an IPO,” he said.

Related: Be Aware: Crypto Scam Apps Are Lurking in App Stores

He did, however, commend market competitor Coinbase for its fast-approaching debut on the public markets. CZ even said Coinbase’s $100 billion valuation is probably too low. “I think [Coinbase] should be valued much higher to be very frank,” For context, Goldman Sachs has a current market cap of around $118 billion.

He also struck back at Coinbase’s sniping of Binance as a fly-by-night operation running below regulatory radar. “I actually believe we have the strongest KYC (know your customer), AML (anti-money laundering) and geofencing technologies in place,” CZ said.

The CEO who has reportedly clashed with local authorities in China and sued publications for running allegedly defamatory stories on whispers of the exchange’s regulatory arbitrage tactics admitted Binance’s stringent controls are “somewhat counter to popular perception.” He nonetheless pressed: “We have the best [regulatory] controls.”

Binance further moved to strengthen its policy hand Thursday by hiring former U.S. Senator Max Baucus as its first government relations adviser.

Related: What Would It Take for You to Switch to a Crypto Bank?

When asked about the “Tai Chi” arbitrage documents, a set of regulatory strategies that appeared to skirt the line of legality and prompted Binance to sue Forbes, which ran the story, for defamation (a lawsuit Binance later dropped) CZ said he has “clear evidence” that Binance rejected what he said was a third-party proposal.

“We actually have an email from myself to some of our lawyers saying we are not going to pursue that approach,” CZ said.

On growth, CZ said Binance is outpacing even the heady onboarding rates of the 2017 bull run. New signups are flocking on despite the bitcoin market still being in “the dip,” CZ said.

Related Stories

Crypto Fund CoinShares Jumps 33% in First Day on Nasdaq’s Swedish Exchange

5 years 7 months ago

CoinShares, a European digital asset investment firm, jumped 33% in its first day of trading on the Nasdaq First North Growth Market in Sweden.

According to the exchange’s website, the shares (under the ticker CS) started the day trading around 81.9 Swedish krone (SEK) and ended at 109.12 SEK, implying a market capitalization of 7.3 billion SEK ($860 million).

As reported earlier by CoinDesk, the shares were initially offered at 44.90 SEK, so the exchange’s closing price implies that holders at that price level have already doubled their money, and then some.

Related Stories

Firm’s Website Breaks After It Says It Will Mine Dogecoin

5 years 7 months ago

Vancouver-based tech firm Hello Pal International said Thursday its website suffered a temporary outage due to overload after announcing it’s going to start mining dogecoin and litecoin.

  • In an announcement, Hello Pal International said following its dogecoin-related announcement its company website experienced a surge in traffic of over 1000%, which resulted in the website server being overloaded and causing a temporary outage.
  • On March 8, the firm announced the acquisition of an initial 15% interest in a dedicated dogecoin and litecoin mining facility, and the acquisition of an initial 51% of at least 12,500 mining rigs dedicated to mining both cryptocurrencies.
  • “The sharp increase in activity on our website and the Hello Pal app validates the clear position we have taken on dogecoin as well as on cryptocurrency in general,” said KL Wong, founder, and chairman of Hello Pal.
  • Dogecoin has seen a resurgence in popularity after celebrities including Elon Musk, Snoop Dogg and Gene Simmons have tweeted about the cryptocurrency and as prices surged during the WallStreetBets trading mania.

Read more: Decentralized Exchange Launches for Dogecoin Swaps

Related Stories

SEC Brings Enforcement Action Against Alleged $6.9M Ponzi Scheme

5 years 7 months ago

The U.S. Securities and Exchange Commission (SEC) has brought emergency enforcement action against an Idaho man who allegedly raised $6.9 million for a fraudulent digital asset investment pool.

  • According to a document filed March 5, since October 2017 defendant Shawn Cutting represented himself as an experienced financial adviser to raise funds from over 450 investors.
  • Having no such experience, in fact, Cutting used the $6.9 million to purchase cars, improve his home and pay for his daughter’s wedding.
  • He also paid hundreds of thousands of dollars in “Ponzi-like payments” while communicating false updates to investors, often describing gains of over 50% in a single month.
  • Since February 2020, Cutting has been ignoring investors’ requests to withdraw their funds.
  • In December 2020, he also defied an SEC bid to access his record, arguing his right to financial privacy.
  • Along with Cutting’s wife Janine, a stream of different companies including Crypto Traders Management and Golden Cross Investments are listed as relief defendants by the SEC.

See also: Self-Help Firm That Mostly Took Bitcoin as Payment Mostly Just Helped Itself, SEC Charges

Related Stories

Foundry Ends Bitcoin Mining Pool Beta Phase, Adds More Institutional Clients

5 years 7 months ago

Foundry, the cryptocurrency mining firm owned by Digital Currency Group (DCG), is opening its mining pool to additional institutional customers, emerging from a five-month beta phase during which the company has already grown into one of the industry’s largest players. (DCG, a cryptocurrency-focused investment conglomerate, also owns CoinDesk.)

Foundry’s North America-based pool ranks among the 10 largest with over 4 exahashes per second of mining power, according to network data collected by BTC.com. An exahash represents a quintillion computations, or computer-generated guesses at the cryptographic puzzles that must be solved every 10 minutes or so to keep the Bitcoin blockchain running.

CEO Mike Colyer said his company wants to offer an experience “tailor-made to fit the needs of institutional mining companies.”

Related: Crypto Fund CoinShares Jumps 33% in First Day on Nasdaq’s Swedish Exchange

Concurrent with the end of its beta phase, Foundry’s pool has added Texas-based Blockcap to its growing list of clients. Using roughly 10,000 mining machines in Foundry’s pool, Blockcap represents over 0.9 exahashes of computing power.

In mid-January, Foundry teamed up with Minnesota-based Compute North to launch a 14,000-machine mining facility, also targeting institutional miners.

The past six months of growth puts Foundry “a step closer to its ultimate aim of securing a spot among the top 5 pools, which has historically been dominated by strictly China-based pools,” according to a statement.

Last month, Foundry’s pool mined 35 blocks, per the website BTC.com, and it’s on pace to beat that pace in March, having already mined 22 blocks.

Related Stories

Tether Stablecoin Expands Its Reach to Another Blockchain

5 years 7 months ago

Tether, the world’s largest stablecoin by market value, is now live on the Solana network.

  • In an announcement Thursday, Tether CTO Paolo Ardoino said he believes USDT’s expansion to its eighth blockchain will support “a dazzling array of projects” in decentralized finance (DeFi), Web 3.0 and blockchain gaming.
  • Tether is already live on seven other blockchains – Algorand, BCH, EOS, Ethereum, Liquid Network, Omni and Tron – with a total market cap of at least $37 billion.
  • The stablecoin is linked 1:1 to the price of the U.S. dollar and widely used in cryptocurrency markets as a way to quickly move funds to and from assets and platforms without using traditional finance rails.
  • There have been controversies over the assets backing tether, with the issuing firm not providing regular professional audits.
  • Solana’s “high-speed” blockchain will allow holders of USDT to transmit their tokens quickly and cheaply – “often for less than $0.00001 per transaction,” according to the announcement.

See also: What a Transparent Tether Means for Bitcoin

Related Stories

Nano’s Network Flooded With Spam, Nodes Out of Sync

5 years 7 months ago

A transaction spamming attack has disrupted operations on the Nano network. Node operators throttled their bandwidth to deal with the issue but the network is out of sync and some transactions are obstructed, according to social media and Discord reports.

NANO is a cryptocurrency that uses so-called direct acyclic graphs (DAG), not blockchain, to settle transactions across the network. Unlike a blockchain, which includes one unified and continuous transaction history, Nano’s DAG ledger consists of multiple branches of asynchronous transaction histories.

The coin’s design guarantees very low transaction fees. But as evidenced by this attack, this comes at of decentralization and Sybil resistance.

Related: Crypto Fund CoinShares Jumps 33% in First Day on Nasdaq’s Swedish Exchange

In Nano’s Discord on Thursday morning, users complained about unconfirmed transactions and out-of-sync block explorers.

“I’ve [sent] some nano this morning. Nault [wallet] reports it as sent. Destination hasn’t confirmed it yet. ‘While the account address is valid, no blocks have been published to its chain yet. If NANO has been sent to this account, it still needs to publish a corresponding block to pocket the funds.’ What does this mean? Normally it shows up within minutes,” one user asked Nano’s Discord support channel.

Another, who runs two separate Nano nodes, noted a discrepancy in network data.

Per an unverified Reddit post, the trouble began when Nano’s network was flooded with near-zero value transactions. In response to this, Nano’s creator, Colin LeMahieu, told node operators to lower their bandwidths to accept fewer incoming transactions.

Related: The Node: COVID-19 and the Need for Web 3.0

This has resulted in effectively stymying the network, one Nano user, hanzyfranzy, suggests in the post:

“So yes, the network is globally down right now. Probably unlikely to change until node operators change their configs. Some transactions are getting through, but it’s a small trickle.”

Nano creator Colin LeMahieu told CoinDesk that node were first knocked out of sync by the attack which stressed “cpu and disk limits” for nodes.

“Lowering the bandwidth limit,” he said, “preserves disk and cpu resources so they can stay in sync.”

“The network was at a sustained 70+tps over a week and nodes were falling out of sync. When representatives lower the bandwidth cap it effectively reduces the network tps which allows them to catch up. Unfortunately the attacker was also exploiting a poor performance case in the node so resyncing is slow,” LeMahieu continued.

LeMahieu believes the attackers targeted Nano, which has team of full-time team of 5 working on it, during its v.22 release. The attackers have stopped for now and LeMahieu told CoinDesk that the network is “slowly recovering” but did not stipulate when it might be fully healthy again.

Updated Thursday, March 11, 2021, 16:12 UTC: Additional comments from Nano creator Colin LeMahieu describing the attack were included.

Related Stories

Bitcoin Winning Streak Now at 7 Days as Fresh Stimulus Keeps Inflation Bet Alive

5 years 7 months ago

Bitcoin was higher Thursday, extending this year’s longest winning streak to seven days. Investors bid up the cryptocurrency as a potential hedge against future inflation despite data showing little to worry about from the current pace of price increases.

As of 14:39 coordinated universal time (9:39 a.m. ET), bitcoin (BTC) was changing hands around $56,849, up 1.6% on the day near a two-week high. The price is approaching the all-time-high of $58,332 reached last month, and some analysts predict this rally could push bitcoin past $60,000 for the first time.

The European Central Bank on Thursday said it would accelerate a plan to buy as much as €1.85 trillion ($2.2 trillion) of bonds to keep bond yields from rising so fast that the region’s economic recovery is derailed. The announcement came a day after the U.S. House of Representatives passed a $1.9 trillion relief bill, sending the bill to President Joe Biden’s desk for his signature. 

Related: Crypto Fund CoinShares Jumps 33% in First Day on Nasdaq’s Swedish Exchange

The largest cryptocurrency is viewed by a growing number of investors as a hedge against the potential inflationary impact of trillions of dollars of coronavirus-related economic stimulus, pumped into financial markets over the past year from governments and central banks around the world. But a recent climb in government bond yields in the U.S. and Europe had raised the question of whether central banks would tighten monetary policy to address the underlying inflation concerns, or merely use bond purchases to push yields back down. Bond yields move in opposition to their price, so extra purchasing demand for the securities usually puts downward pressure on the yields.

Read more: ECB Speeds €1.85T Stimulus Program as Lagarde Frets Over ‘Premature Tightening’ 

“With the floodgates now open in terms of new liquidity for the market, we expect fresh record highs to be set for the major cryptoassets in short order,” Simon Peters, an analyst with the trading platform eToro, said in emailed comments.

The cryptocurrency’s price has almost doubled already this year after quadrupling in 2020 and doubling the year before that. The performance has garnered the attention of big investors because it’s been so starkly superior to that of U.S. stocks, where the Standard & Poor’s 500 Index is up just 0.7% on a year-to-date basis. Wall Street heavyweight Goldman Sachs has ranked bitcoin as the year’s best-performing asset category, and the firm’s chief operating officer, John Waldron, recently said that “demand is rising” from clients.

Related: The Node: COVID-19 and the Need for Web 3.0

On Wednesday, a soft U.S. reading on consumer price increases for the month of February allayed any concern that higher inflation is imminent, prompting a drop in 10-year U.S. Treasury yields to around 1.5% and sparking a rally in assets viewed as risky, including stocks.

Despite its recent popularity as an inflation hedge, bitcoin gained, too, since it’s still usually seen as a risky asset, due to the 12-year-old digital asset’s notorious price volatility.

Read more: Why the CEO of New York Life Just Joined the Board of One of Bitcoin’s Fastest-Growing Companies

“Worries over inflation eased as consumer prices rose lower than expectations, causing markets to rebound,” Lennard Neo, head of research for the cryptocurrency-focused Stack Funds, wrote Thursday in a weekly report. “Bitcoin is no exception as its upward trajectory remains strong.”

Related Stories
Checked
18 minutes 11 seconds ago
CoinDesk Crypto
Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance and Web 3.0 news with analysis, video and live price updates.
Subscribe to CoinDesk Crypto feed