Last week, China’s President Xi Jinping said China should hasten the development of blockchain technology and take a leading position in this nascent field. This drove blockchain-related stocks upwards on Monday.
Shenzhen Xunlei Networking Technologies is one of the companies, that sells cloud downloading services and is heavily invested in blockchain, which saw it’s stock market cap doubling over the night. This huge surge was the highest daily rise since the company’s listing on Nasdaq in 2014.
Dozens of Chinese blockchain-related companies listed on the A-share market maxed out their 10 percent daily limit on Monday. It has been expected that more capital flowing into the sector is to follow.
More Gains Coming Soon
Bitcoin price, meanwhile soared 42% last week, going as high as $10,600. At the time of writing, BTC has been trading at $9,383 with a 24 hours loss of 2.78%, as per Coincodex.
An explosion of interest in blockchain and bitcoin is also seen in search data on Baidu and WeChat, with investors correlating the price rise in the flagship cryptocurrency with this surge in interest.
as expected, almost ALL (over 100) Blockchain-related Chinese A-shares hit the daily upper limit (10% intraday gain)
Vitalik Buterin of Ethereum posted a poll on his Twitter account to his followers.
The Ethereum platform will soon be going through a long-term upgrade to resolve issues regarding growth of the network.
Vitalik Buterin, the co-founder of Ethereum, is stirring the pot with cryptocurrency users with a recent poll that he took on Twitter. He asked about the opinions of followers on reversing chain activity, if there was ever a major hack of an exchange or another entity. He remarked, “Suppose a popular smart contract wallet that a large portion of the ETH community users gets hacked. This could be reverted by reverting all chain activity since the hack and doing a DAO-style HF to recover the funds.”
Suppose a popular smart contract wallet that a large portion of the ETH community uses gets hacked. This could be reverted by reverting all chain activity since the hack and doing a DAO-style HF to recover the funds. How much ETH must be at stake for you to support this?
The poll revealed that 61% of the voters stated that intervention is never okay in these situations, leading Buterin to ask how many coins would need to be stolen before followers would be supportive of manually reversing the transaction, but they argued that money shouldn’t even be an issue with the decision to remove the benefits of blockchain in the first place.
Reversing transactions have been done before by the Ethereum developer. One of the most notorious situations involved the Decentralized Autonomous Organization (DAO) hack, back in 2016. At the time, the hacking resulted in $60 million worth of Ether.
Ethereum is presently going through a major change with a long-term upgrade, and any alterations will end up changing the algorithm of the platform. By doing so, the changes will resolve some of the big problems associated with the growth of the network. By August, Buterin had already stated that the blockchain for Ethereum was almost full at this point.
Ethereum remains the largest altcoin, based on its market cap. Still, its performance was rather underwhelming this year, as Bitcoin continues to be at the top spot. Presently, the Ethereum token is priced at $179.35, dropping by 5.24% in the last 24 hours.
The three executives impacted were all in attendance at Consensus 2018.
Seth Shapiro knew something was wrong with his phone when he lost reception at the event.
The cryptocurrency industry is no stranger to hacking, but many hackers choose a hands-off approach, infiltrating systems remotely. However, Seth Sharpiro of VideoCoin recently became the subject of a SIM swapping hack, which he is suing AT&T to resolve. Shapiro alleges that the hack cost him $1.7 million in digital assets and that three executives were targeted in the attack.
Filed on October 17th, the lawsuit states that the hackers were granted repeated access to the SIM card by the cell carrier last May. In the process, the hackers stole over $1.8 million as they cleared out his wallets that he held on 11 exchanges. The complaint elaborates for a total of 58 pages, in which Shapiro lays out the massive web of conspiracies, insiders, and back-to-back SIM swaps. His evidence must be clear because at least two employees at AT&T have already ended up in criminal court.
The complaint states,
“By utilizing their control over Mr. Shapiro’s AT&T cell phone number—and the control of additional accounts (such as his email) secured through that number by utilizing two factor authentication—these third-party hackers were able to access Mr. Shapiro’s accounts on various cryptocurrency exchange platforms, including the accounts he controlled on behalf of his business venture. The hackers then transferred Mr. Shapiro’s currency from Mr. Shapiro’s accounts into accounts that they controlled. In all, they stole more than $1.8 million from Mr. Shapiro in the two consecutive SIM swap attacks on May 16, 2018.”
Two former employees of AT&T in Tucson, Arizona – Jarrett White and Robert Jack – are accused of being the key to the whole operation. From the hackers, the duo received $4,300 and $585.25, individually, from “The Community,” which is a name used for the hackers. These payments were meant to provide the hackers with insider information, which gave them access to Shapiro’s cell phone.
According to Shapiro, $1 million of the $1.757 million belonged to him, while the remaining amount came from other’s who had invested in cryptocurrency projects alongside him. Along with Shapiro, the hackers also took control of the SIM cards of two other executives at the Consensus 2018 event, who were not mentioned in the recent filing.
The three executives impacted are actually partners in several investment funds and crypto PR companies. All three are speaking at a conference with Michael Terpin, the most notable victim of the crypto swapping. Terpin is also suing AT&T for a SIM hacking, with his being more costly at $23.8 million. He is seeking an additional $200 million to cover punitive damages.
Shapiro, Terpin, and Kitze are all part of Pro Top Company Services, which advertises crypto investment funds. The company, made up of nine members, is much like the Alphabit Fund with seven members. When the theft actually occurred, VideoCoin had just announced the end of a $50 million ICO, done through private investments instead of public sales. Some of the investors included Galaxy Investment Partners, Ethereum co-founder Anthony Di Iorio, Akamai Co-Founder Randall Kaplan, Science Blockchain and Alphabit Fund.
When speaking with investigators, Shapiro stated that he was specifically targeted on May 16th, 2018, when he visited an AT&T store in Manhattan to help him after losing cell reception. At the store, salespersons confirmed that a SIM swapping hack occurred, which prompted him to purchase a new phone and SIM card out of fear that his cryptocurrency accounts were in danger. However, “The Community” and their insiders managed to stay ahead, pulling his funds from a Bittrex account.
Though AT&T received requests for comment by CoinDesk, they had not replied by press time.
It is unclear if the 50% control was the result of the work of one or multiple miners.
Some proponents believe that this ability points to an issue with security and liability with Bitcoin Cash.
In the cryptocurrency industry, every platform thrives on a lack of majority control. Decentralization relies on this idea, as it allows the industry to remain free and unregulated. However, a recent article by Cointelegraph points out an issue with the Bitcoin Cash hash rate, which was in control of 50% of the hash rate for a total of 24 hours.
From 10:00am on October 24th to 10:00am on October 25th, the miner appeared to mine 73 blocks. Notgrubles, a crypto Twitter user, stated that this action is proof that “BCH is a security risk and liability,” and that the coin should be delisted.
With this level of control, the miner, or miners, cannot be far from having control of the entire network. One of the crypto proponents on Reddit suggested that this type of control would lead the miner to do “nefarious things.” Another Redditor – Bitmeister – stated that it is more likely that Bitcoin miners are trying to experiment with their BTC hash power by directing their attention to BCH.
Bitcoin’s network hash rate recently had a major dip of 40% at the end of September, which is still unexplained at this point. Considering the massive highs that Bitcoin experienced in their hash rates over the summer, this drop was even more surprising. Cointelegraph even reported that the hash rate passed 102 quintillion hashes, which was a major milestone for the digital asset.
With a higher hash rate comes greater competition to mine new blocks. At the same time, it increases the resources that would be required for a 51% attack, which secures the network.
Along with the sudden rise in Bitcoin’s price, Bitcoin Cash is also seeing some success, though the value of the token has declined since then. At the time of writing, the token was down by 2.45% with a value of $250.12 per BCH.
Teeka Tiwari claims average investors like you can follow the information in the report to make “57x” returns on investment, with as little as $50 to start. This is done by exploiting investing in stocks before they IPO or go public.
Let’s take the time and review what is inside Teeka Tiwari’s Red Folder, catered towards taking advantage of private placement investments that were once walled off by the SEC and financial elite. Teeka says it is now time to use it for your own gain and turn the tables on Wall Street and capitalize on the pre-IPO market by using this 30-year old secret play.
The report focuses on private placements and pre-IPOs. Tiwari claims the world’s richest investors use private placements and pre-IPOs to capitalize on trends early.
By signing up for The Palm Beach Letter today, you will get the “Make Millions in the Private Placement Market,” eBook along with a handful of other research reports.
Let’s take a closer look at Make Millions in the Private Placement Market eBook to determine whether or not it’s worth your time.
What is “Make Millions in the Private Placement Market”?
Make Millions in the Private Placement Market is a new eBook created by Teeka Tiwari and the team at Palm Beach Research. Like other reports released by the company, this report claims to give you an “inside edge” over other investors.
Some of the key lessons contained in Make Millions in the Private Placement Market include:
What a private placement is and how private placements work
How private placements fit into an asymmetric asset portfolio
How to use the SCALE system to evaluate deals
How to uncover the top opportunities
So what exactly are private placements? How do pre-IPOs work? Tiwari claims a new SEC regulation” 30 years in the making” now lets ordinary investors take part in pre-IPOs.
Tiwari claims the pre-IPO market is “how I made most of my fortune”, and it’s the market he used “to see a small $1,000 investment reach as much as $1.6 million.” By following Tiwari’s investment advice in this report, you can expect similar gains. The sales page is filled with claims of people making 5,700% ROIs, 14,000% gains, and other ridiculous investment returns.
How Do Private Placement Deals and Pre-IPOs Work?
So what’s the big deal with pre-IPOs and private placements?
A few years ago, the SEC adopted new rules allowing non-millionaires to invest in private companies. These are called Regulation A+ (Reg A+) deals. In December 2018, the SEC adopted the final rules. Today, these A+ deals are now being approved by the SEC.
By investing in the right company during the private placement or pre-IPO phase, you can earn significant returns when the company goes public. Tiwari brags about buying stocks for “pennies…before a company goes public at $1…$10…$100.”
Better yet, Tiwari claims there’s “zero downside risk” by following his investment advice. How can there be no risk by investing in private companies? Well, venture capital firms often sign private placement deals that include warrants. When you buy stock shares in private companies, you can also get this “warrant kicker”. Essentially, this gives you extra shares for free. You might buy 1,000 shares, then receive 1,000 warrants you can sell if the stock exceeds a certain price in the future. You can sell half the shares for a quick 2X, 4X, or 8X profit early on, then hold onto half the shares for greater returns.
“These warrants can cut your risk to zero…and boost your profits even higher,” explains Tiwari.
What’s the Catch with Private Placements and Pre-IPOs?
Obviously, investing in Uber, Facebook, or Amazon during the pre-IPO phase would have been an amazing decision. Tiwari makes it seem like every pre-IPO company is going to be the next Uber or Amazon.
In reality, of course, things are different. For every Uber or Amazon, there are 1,000 companies that go bankrupt. Some never end up going public. Others hit public markets and tank.
How to Analyze Private Placement Deals and Pre-IPOs
Tiwari reports using his “SCALE” method to analyze companies during the private placement and pre-IPO phase:
S – Structure: Every private placement deal is structured differently. Tiwari recommends looking for deals where your shares are the same price that company insiders paid. You don’t want to pay $1 per share when company insiders paid $0.05 per share. Tiwari also recommends looking for deals with the warrant kicker mentioned above, giving you free bonus shares if the stock hits a certain price.
C – Cash: Tiwari identifies companies that have a good business model, but just need cash to grow. When you’re buying stock in a company, you’re giving the company cash. Some companies know how to utilize that cash, while others do not.
A – Advantage: Find companies with a durable competitive advantage. Does the company hold patents, licenses, or proprietary technology that its competitors do not?
L – Leverage a Trend: Tiwari recommends investing in a sector of the market that is about to experience growth. Take advantage of a trend just about that trend is about to become mainstream. If you time it right, then investor money will pour in after you’ve already entered the market.
E – Executives: Finally, Tiwari recommends finding a company that can execute its plans. Some companies have all of the above items in place, yet never execute their plan to completion. Analyze the team and executives and verify that they’ve done this before.
Make Millions in the Private Placement Market Pricing
As part of the recent promotional deal with The Palm Beach Letter, however, you will get the report for free after signing up for an annual subscription to The Palm Beach Letter.
What is The Palm Beach Letter?
The Palm Beach Letter is an email subscription service offered by Palm Beach Research Group, an alternative financial analysis firm based in Florida. Teeka Tiwari is a key member of the Palm Beach Research Group team and serves as editor for several of the company’s flagship newsletters and products.
As part of the recent promotion with “Make Millions in the Private Placement Market”, you can buy an annual subscription to The Palm Beach Letter for $49 for your first year. Then, your subscription is renewed for $129 automatically every year after that.
What’s Included with The Palm Beach Letter?
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Make Millions in the Private Placement Market
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The Palm Beach Letter Pricing
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If you request a refund, your subscription will be canceled, although you’ll still be able to keep the free bonus reports you received above.
Palm Beach Research Group has unveiled a new report called, “Make Millions in the Private Placement Market”. The report explains how to take advantage of pre-IPOs and private placement market deals.
According to the report’s author, Teeka Tiwari, investors can use this information to earn returns of 5,000% to 14,000% with limited risk.
The report is available for free with a subscription to The Palm Beach Letter, which costs $49 per year for your first year and then automatically renews for $129 per year.
An increase in the internet searches for the term blockchain is much higher than bitcoin
On Oct. 25, Bitcoin price took flight, going from around $7,300 to $8,600 level that further continued the next day when it jumped to as high as $10,600. This surge marked the 3rd largest one day gain in Bitcoin’s history.
As Bitcoin jumped to early September level, after dropping to the 5-month low, the interest in Bitcoin also edged up.
Economist and trader Alex Kruger shared on Twitter that Bitcoin internet searches on Google, Baidu, and WeChat have seen a spike of 233%, 200%, and 145% respectively.
This spike in internet search is the result of price and not the other way around. However, an increase in the internet searches for the term blockchain is much higher.
On Oct. 23, the term blockchain saw 77k searches in comparison to Bitcoin’s 572k on WeChat. But two days later, on Oct. 25, these figures changed drastically, as while Blockchain registered 9.2 million searches, the term Bitcoin accounted for only 1.3 million, as per the data provided by Cole Kennelly.
This is because of China’s latest move towards blockchain technology. President Xi Jinping recently talked about seizing the opportunity and take the “leading position” in the emerging field of blockchain technology.
Then as we reported, China passed a new law to regulate cryptography that will be implemented from January 2020.
Detailing the Price Action
But how did the interest in blockchain transferred to Bitcoin? Kruger explains that Xi Jinping endorsing blockchain had investors buying Bitcoin as “many in China associate blockchain with bitcoin.” Now, speculators speculate on that and front-run it or use the news to drive price.
This, Kruger says is just like the fake China macro hedge narrative, further explaining that there was no actual hedging going on, just speculation on such hedging that drove prices up.
But, “this narrative has more weight than the macro one, as odds of it creating mainland flows are higher,” he added.
Nic Carter, founding partner of Castle Island Ventures also found fault in this narrative as he says, “Much of the time it’s a big ol fund no one has heard of liquidating /buying in.”
Dovey Wan, the founding partner of Primitive Ventures, further provides an insight into the price action.
The CCP meeting where Xi gave the talk was held on Oct. 24 which was broadcasted to the billions the next day.
As a result, WeChat, where mostly industry people come to know about news on first hand, saw a significant spike in Blockchain but Bitcoin didn’t saw a hike until the next day. Baidu, which is usually visited by newbies, saw an increase of 1300% in Blockchain surpassing BTC.
“The Blockchain shill from Xi definitely helps Bitcoin awareness as well, the two concepts are interrelated, hard to isolate one from each other,”
Latest Bitcoin Price News and Crypto Market Updates
The seventeenth-largest cryptocurrency records a more than 50% jump
Other China-based crypto assets enjoying a good hike too
The market is enjoying a bull rally that has the world’s leading cryptocurrencies surging 42%, the third-largest increase in BTC price ever.
Altcoins also saw a huge uptick in their price that added more than $55 billion to total market capitalization. However, the spike in altcoins hasn’t been as much as the flagship cryptocurrency because we saw BTC dominance yet again sailing pass 70%.
Having said that, there have been a few cryptos that registers a much higher percentage of gain than that of Bitcoin.
Recording a 50% Jump
The one cryptocurrency that pumped the hardest during this green market has been NEO.
The seventeenth-largest cryptocurrency by market cap of $738 million recorded an increase of more than 51%.
The day before the pump, NEO was trading at $6.80 that jumped above $7 on Oct. 25, the day BTC went from $7,300 to $8,650. The real sparks flew on Oct. 26 when the price came close to touching $9.
While after surging to $10,600 level on Oct. 26, Bitcoin took a dive and has been since trading around $9,200, NEO is still on the up and up.
Today, NEO recorded another spike and jumped to $10.70, a level that was last seen in mid-August. At the time of writing, NEO has been trading at $10.50 with 24 hours gains of more than 24%, as per Coincodex.
However, the digital asset is still down 35.8% in the past year and down 94% from its all-time high of $198.
China-based Crypto Assets Enjoying a Good Hike
This spike has been driven by Chinese President Xi Jinping talking about becoming a leader in blockchain technology and passing a crypto law that will go into effect on January 2020.
So, it makes sense that NEO, a crypto asset founded by Da Hongfei and Erik Zhan in China is leading the gains.
NEO was designed to be a regulator-friendly digital asset by having every individual, business or entity operating in the NEO platform a unique digital identity that can be verified.
As such, it has also been among the top 10 cryptos in China’s CCID Global Public Blockchain Technology Assessment Index.
Ontology (up over 38%), Qtum (over 30%), and VeChain (24%) are other China-based crypto assets that are registering huge gains.
China is all-in in blockchain technology. President Xi Jinping stressed that China should “seize the opportunity” and take the leading position in the field of blockchain technology.
This news has the leading cryptocurrency surging 42%, the third largest Bitcoin spike ever in its history.
Now, the Standing Committee of the 13th National People’s Congress in China has passed a new law on Oct. 26 to regulate cryptography. The law will be implemented from January 2020, reported local news channel CCTV.
The central cryptographic agency will have a unified leadership over the national cryptographic work and will formulate major guidelines and policies for national cryptography.
The law is aimed at standardizing the application and management of passwords, promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized and legalized level of password management.
The Article 9 of the law, as shared by a think tank platform, Safe Internal Reference, the state encourages the research and exchange of cryptographic science and technology, protects cryptographic intellectual property rights, and promotes the progress and innovation of cryptography and public/private key technology.
China Pushing Out Political & Legal Foundation For the Upcoming Digital RMB
Though it nowhere explicitly mentions cryptocurrency, it is focused on the application of cryptography, a component that underpins cryptos like Bitcoin.
“The key takeaway is – the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all “encrypted” behaviors, which can be VERY broad, from mining to block propagation,”
shared Dovey Wan, founding partner of Primitive Crypto.
In a nutshell, Wan notes this is about,
“pushing out the political and legal foundation for the upcoming digital RMB, which will roll out by the end of this year or early next year.”
China’s move came just a few days after Facebook CEO Mark Zuckerberg during his testimony before the Congress regarding this crypto project Libra warned,
“China is moving quickly to launch a similar idea in the coming months. We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate.”
A trusted source has confirmed that the Internal Revenue Service is going to conduct audits on cryptocurrency activities. The source said that the tax collection agency is planning to unleash a batch of audit notices. These new notices will be follow-ups to 10,000 letters that were initially sent in August.
The IRS has been focusing their attention on the cryptocurrency industry, and soon, audits will be done in the industry. Not many Americans were sure of what was entailed in the 10,000 letters sent in August.
However, multiple reports emerging show the IRS is increasing its review and investigations on substantial crypto investors. A statement by BeInCrypto stated that there was a new checkbox on 1040 form that asked individuals to avail information on whether they had exchanged, sent, or received any digital currency since 2013.
It was also well noted that failure to answer that question with utmost honesty would be a criminal offense. Many people were amazed because not only did this kind of study target the traders, but the holders also seemed to be a target here.
Audit Notices to Crytpo Users
Crypto Tax Girl reported that Judith McNamara who works with the IRS confirmed that the tax collection agency is going to send more audit notices. It is, however, uncertain whether everyone who received the August letter will secure an audit notice for the second time.
Per Judith McNamara of the IRS, based on new data that the IRS has, it will likely be sending out more audit notices soon in addition to the initial 10,000 letter campaign that was sent out in August.
Letters sent out in August differed in what they required the recipients to do. Some were a kind of notification that the IRS was aware they were holding the cryptocurrency. Other letters demanded a proper response from the recipients and immediate action. This time around, however, it is expected that audit letters will dictate that there must be a response to the letter.
The IRS has been heavily criticized for using the old laws on new concepts and technologies such as cryptocurrencies. Clearly, the IRS is not welcome in the digital currencies space.
What does this mean for BTC price? Are we are still in a bear market?
Despite Bitcoin recording the 3rd highest one-day gains in history, Will Woo says we are in the first “accumulation” phase.
Bitcoin has been on a tear, going from about $7,350 yesterday to well above $10,000. On some exchanges, it went as high as $10,600.
This has been the 3rd largest one-day gain in Bitcoin’s 10-year long history. According to analyst Willy Woo, the leading cryptocurrency in this cycle is trading like it did in the 2011-2013 cycle.
“The liquidity of the pro funds are the new oversized whales we had in the 2011 days. Expect volatility and chart shapes like a low liquidity shitcoin or early BTC,”
But What Does This Mean For BTC price?
Woo explains in a tweet,
BTC is still in consolidation and blow-off. 4k->14k was an unprecedented series of short squeezes. In other words the price run up was dictated by on-exchange trader games without sufficient organic investment volume to justify a long term climb.
The short liquidated on BitMEX has been approaching $300 million, which is a significant part of $700 million open interest on the BitMEX contract.
As such this sudden and strong price movement to the upside, Woo says was dictated by,
“on-exchange trader games without sufficient organic investment volume to justify a long term climb.”
So now, for at least the next three months, and well into next year, he is expecting Bitcoin to range-bound sideways before the organic investment volume, that has been missing this time, flips Bitcoin into a bullish structure.
But economist and trader Alex Kruger argues that this organic investment is taken as to be reflected on-chain which is “incorrect” as most investors don’t care about “not your keys, not your coins”.
Woo counters that on-exchange supply has increased 4x since last bull run in 2017 and still the majority of HODL is still on-chain. So, these movements provide “a lot of behavioral information that can be extrapolated to on-exchange HODL.”
Does This mean, We Are Still in a Bear Market?
Woo explains, “it’s in a local bear structure, inside a macro bull market.”
But it’s not a bad thing, in any way, in fact, the analyst states,
“the longer this consolidation lasts, the higher the price target for the bull market top.”
The first phase is a “pop out of accumulation,” which we are still playing out. The second phase is a long, steady climb with low volatility. The last phase is the “mania” when the volatility simply goes out of control.
Currently, we are in the accumulation phase and will enter the second phase a few months before the reward halving in May 2020, he said. Towards the end of Q1 of 2020 is that time when “a bullish on-chain structure should coincide with halvening front running.” That, Woo says will be the “best time to deploy capital and go long with high certainty.”