EOS Suffers “Major Outage” on Coinbase as Network Performance Issues Arise

This month alone Coinbase suffered issues with EOS thrice, the exchange is still investigating the problem. Meanwhile, No blockchain is cartel resistant, but EOS’s the best, commented Block.One CEO on Binance’s research “Decentralisation, governance and EOS – a lost case?”

EOS continues to experience “degraded performance levels” on Coinbase, reported cryptocurrency exchange on Feb. 22. As a result, the exchange has temporarily suspended sending EOS while receiving EOS on the platform will be delayed.

Buys and sells of EOS on Coinbase, meanwhile are “functioning normally.”

It has been the third time this month that EOS had an issue on the exchange. On Feb. 14, Coinbase first announced delayed EOS withdrawal requests but the incident was soon resolved and the exchange stated, “We are actively monitoring this issue.”

The two days after the incident, there was yet again delays encountered in EOS send/receives which has been resolved the same day again. Coinbase wrote at that time,

“We are currently working through a backlog of outgoing EOS transactions. Customers sending EOS from Coinbase to an external address may experience a delay before the transaction appears on the blockchain. Deposits, buys, and sells are unaffected by this incident.”

The most recent one has been on Feb. 19, when the San Francisco-based degraded performance with send and receives to be delayed. The exchange implemented a fix and is currently investigating the issue.

However, out of all the cryptocurrencies, EOS still got the sign of “Major Outage” beside it on the Coinbase website.

No blockchain is cartel resistant, but EOS’s is Best – Brendan Blumer

Amidst this, Binance released a research report on “Decentralisation, governance and EOS – a lost case?”

In its report, Binance shares how the eight largest cryptocurrency by market cap of $3.88 billion, which was also the largest ICO recorded with USD 4.1 billion raised in a year-long ICO that ended in July 2017, has been labeled as “a victim of its governance,” where largest holders have “all the power.”

Taking a look at its governance, the report assesses that it lacks mechanisms to avoid or structure the process of vote trading. The incentive structure actually promotes selfish acts and individual parties have the influence to drastically change votes, states the report. It also found that two-thirds of the block producers (BPs) have the worst performance among the 21 BPs.

Blender Blumer, the CEO of Block.One, the company behind EOS countered this with, “All blockchains are voting machines where votes can be bought, whether by hardware + electricity or token ownership, therefore none are cartel resistant and all have control groups that can change anything. EOS simply better aligns interests between holders and operators.”

Moreover, its problems are aggravated by a number of other issues like changed block rewards, low voter turnouts, little transparency, 1-token-30 votes system, and little resistance to Sybil attacks.

“No blockchain is cartel resistant, but EOS is aligned,” is what Blumer had to say about this.

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Author: AnTy

Coinbase Custody Becomes First Custodian With SOC 1 and SOC 2 Security Evaluations

The crypto custody subsidiary of major US-based crypto exchange Coinbase has managed to obtain 2 new security evaluations.

As per a press release from February 12, Coinbase Custody got a SOC 1 Type 2 and a SOC 2 Type 2 report from Grant Thornton, a major US-based accounting firm. This means Coinbase Custody is now able to prove that it complies with many of the security and reporting regulatory standards.

What Information Do SOC Reports Provide?

The Grant Thornton official website says that SOC reports provide information on how strong and present the financial, information and operational controls are in an organization. SOC 1 gives information related to the financial reporting of any organization and are intended for auditor-auditor communications.

On the other hand, SOC 2 gives more information about availability, security, privacy, processing integrity and confidentiality. The Type 1 SOC 2 and SOC 2 reports describe the controls’ design, whereas Type 2 reports cover the effectiveness of controls for a testing time period of 6 months.

Coinbase Custody Will Renew Reports

Coinbase Custody has stated that it’s going to renew its reports. The news about the evaluations arrives soon after in January, Coinbase has a established an Ireland identity in order to make its cryptocurrency services available to European institutions. There are other crypto services providers that went to obtain SOC certificates. For example, at the end of January, US-based crypto custodian and exchange Gemini was granted the SOC 2 Type 2 evaluation by Deloitte.

What Does Cryptocurrency Custody Mean?

The greatest advantage of crypto assets is that they can be under independent custody. Institutional investors and financial markets need a higher level of security standards in order to achieve self-custody. Rohan Barde Hai, a researcher for Blockchain Zoo, explained in September last year how important custody solutions are for institutional investors. The more the crypto market is maturing, the more traditional institutions decide to join it.

For instance, after the new Anti-Money Laundering laws have been instated, 40 banks in Germany asked regulators to approve their digital asset custody services, which means the adoption of crypto is on the rise.

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Author: Oana Ularu

UK Crypto Financial Service Provider Becomes First ‘Authorised Payment Institution’ By FCA

A British crypto company similar to Bitstamp, Galaxy Digital and Coinbase was awarded a license for payments by the UK Financial Conduct Authority (FCA).

The announcement was made on Monday, by the BCB Group. It’s saying that BCB Payments Ltd., a subsidiary of BCB Group, is the first and only UK crypto company to be registered as an Authorized Payment Institution.

Banks in UK Aren’t Too Keen on Crypto Firms

Since British banks don’t really want to work with crypto companies, BCB stands as the only option for cryptocurrency enthusiasts. It has mentioned that it provides B2B payment services like cryptocurrency market liquidity and business accounts for some of the largest crypto financial institutions in the world. This is what the CEO and founder of the BCB Group, Oliver von Landsberg-Sadie, had to say about the latest FCA license award obtained by BSB Payments:

“This regulatory approval for our firm, a leading crypto-dedicated payment service provider, is a testament to how we’re able to push ahead with digital asset innovation while remaining in full compliance with some of the most stringent regulations in force globally.”

BCB Payments Already Registered as a Small Payment Institution

BCB Payments hasn’t been a stranger to the FCA, as it has been registered as a Small Payment Institution with the regulator ever since June 2018. Becoming an Authorized Payment Institution is more like an “upgrade”. The Swiss BCB OTC Trading SARL has also been regulated by an organization which is self-regulated, with the supervision of the Swiss Financial Market Supervisory Authority (FINMA). With the new license, BCB Payments expects to gain new international clients from both Switzerland and the UK.

BCB Group Working with ClearBank

The problem with banks in UK being reluctant to the crypto space came into attention in July 2019, when Coinbase had to put the transactions denominated in the British pound on hold because it was dropped by Barclays. In October, it reinstated its services, after closing a partnership with ClearBank. The BCB Group is also collaborating with ClearBank to offer British clients the UK Faster Payments scheme. In July last year, BCB started to provide this service for the crypto exchange Bitstamp.

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Author: Oana Ularu

Crypto Rating Council Adds eToro, Radar and OKCoin, Will Release Framework Before Year-End

Crypto Ratings Council which is a group being led by Coinbase and is hopeful of coming up with a framework to analyze if various cryptos can be classified as securities as per the US law, has announced the addition of new members, CoinDesk reports.

The council announced that Radar, eToro as well as OKCoin US are the new entrants to the group which aims at coming up with standards that will be used by the exchanges to assess if different cryptos are a security or not. According to Juan Suarez who is Coinbase’s counsel working with the CRC, the new entrants will help in enhancing both the technical and legal aspects within the group.

Suarez also revealed that each CRC member is given the priority of reviewing the rating prior to being made public while each asset must be listed by one member.

Suarez also explained that assets are rated using a scale of 1-5 where 1 shows that the crypto in question does not have the qualities of a security as per the US laws. On Thursday, the group rated five new assets where cosmos (ATOM) as well as livepeer (LPT) were to have a score of 3.75. Meanwhile, DASH as well Horizen (ZEN) both received a score of 1 with the Ethereum Classic (ETC) scoring a 2.

CRC is also set to refine the explanations given in its present list. Suarez explained that although the ratings will remain intact, the reasoning denoting whether an asset is a security are set to be condensed. He went ahead to state that it is only the operations of the firm that will be altered to make the bullets more explicit.

CRC stated that it is not in any way affiliated with the SEC which has the mandate to assess and announce if a crypto is a security and has only so far said that Bitcoin as well as Ethereum have no security characteristics.

CRC has come under sharp criticism for lack of transparency about how they asses the assets with various people on Twitter calling for the release of the framework.

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Author: Joseph Kibe

Cryptsy Exchange Users To Receive $962,500 Payout In Coinbase Class Action Settlement

Coinbase has just settled the former Cryptsy crypto exchange lawsuit and agreed to put $962,500 into an escrow agent that handled class action claims on a previous Cryptsy lawsuit.

The plaintiffs’ lawyers have announced the settlement on Monday and won 11,325 BTC in the previous case. Meanwhile, the plaintiffs created a special webpage for Cryptsy victims that got scammed before 2015. On this webpage, they explained how claims can be submitted and listed upcoming important dates for the suit. The settlement comes after 3 years of legal action that almost ended up being trialed by a jury.

A Preliminary Settlement Agreement to be Held in April

Another hearing for either approving or rejecting the preliminary settlement and making needed modifications is going to be held in April, this year. The designated class representative of the lawsuit, Brandon Leidel, will be given $2,500 for his efforts, as he was the one to bring the suit in 2016, and to say that Crypty’s CEO, Paul Vernon has done money laundering with millions from user funds.

Silver Miller and Wites Designated Class Counselors

Both Silver Miller and Wites law firms were designated as class counselors and originally filed the suit. Attorney Mark Wites said in a statement that both the Cryptsy and Coinbase cases were difficult to resolve. This are his exact words:

“When companies go out of business, founders flee the country, and the amount at issue is relatively small, most plaintiff law firms would decline to pursue the case. We were the only lawyers in the country to pursue a case against Cryptsy or Coinbase, individually or as a class action; and we were able to obtain multiple meaningful recoveries for victims who would have otherwise been left without any recourse.”

Silver Miller’s David Silber had this to comment:

“This case shows that businesses in the cryptosphere bear a large measure of responsibility, from with whom they decide to do business and with whom they choose to associate.”

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Author: Oana Ularu

Coinbase Earn a “Huge Success” for Crypto Projects

  • Coinbase Earn led to the creation of 10,000 CDPs on the weekend
  • The growth has been sustained one and not just new initial users effect
  • The exchange also tackled several challenges posed by the decentralized finance apps

According to Coinbase’s latest report, Coinbase Earn launching the Dai Advanced Task resulted in users creating more CDPs (Collateralized Debt Positions) than ever.

Coinbase Earn is a platform that allows users to earn cryptos while learning about them via educational videos and performing tasks. It also helps foundations like MakerDAO by helping them expand user participation and found new users to distribute their dedicated tokens.

Given that the US-based exchange pulled the traffic of more than 16 million in December, down from 28 million in July, it offers a huge opportunity for the projects to reach out to a much bigger audience.

MakerDAO is a decentralized app that allows users to use ETH as collateral to create CDP in its USD-pegged stablecoin DAI.

In the previous 11 months, Coinbase reports that about 9,000 CDPs were created with MakerDAO.

The crypto trading platform launched the service on Friday, July 26, 2019 and on the weekend more than 10,000 CDPs were created however, debt positions haven’t changed significantly.

The effect wasn’t lost right after that, Coinbase says, “It’s shown sustained growth for the network far past the initial new user effect.”

Tackling the Challenges

Coinbase finds that decentralized financial apps pose two major challenges to their users, fear of losing initial deposits and difficult to use.

Through Coinbase Earn, the exchange itself provides users with funds to complete the lesson such as in case of MakerDAO, a very small amount of ETH needed as collateral and to pay the network fee was given to the users wanting to learn about MakerDAO.

Coinbase also took the volatile gas prices into consideration and checked the ETH network for its users. If the prices are too high, it asks its users to come back later to complete the task.

In the case of MakerDAO, there has also been the problem of its UI not being designed for mobile. Here, Coinbase worked with the Maker team to make the Maker app mobile-friendly. As for determining whether a user has successfully created a CDP, they created a crawler that subscribes to all DAI events.

With this success, Coinbase provides the projects a bigger user base, with many of them being first time users.

“The DAI Advanced lesson has been a huge success for token development teams and for our community of users. By completing this task, many users directly engaged with a blockchain for the first time,” stated Coinbase.

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Author: AnTy

Coinbase To Remove DApp Browser From Its Crypto Wallet App Due To Apple Store Compliance

Coinbase is considering removing the DApp browser component from its crypto wallet application in order to continue being hosted on the Apple app store. The San Francisco based crypto exchange noted that it will implement this move for compliance purposes as per Apple’s policy.

This action by Apple is not the first against DApp browsers by the existing tech giants. Just recently, Google removed the Ethereum Metamask browser from its Android store portfolio citing that the application violates its ‘no mining’ policy. Brian Armstrong, Coinbase CEO, confirmed via a reddit post,

According to Armstrong, the situation can be salvaged by DApp users who use Apple devices. They could request the phone manufacturer to accommodate such applications in their policies as more people embrace decentralized tech and digital currencies. Developers who currently have millions worth of crypto tokens tied up for DeFi projects however face the risk of losing value if they do not find efficient alternatives to operate in.

A War Against DApps and Crypto?

The ongoing policy hurdles against DApps could be a war to protect Google and Apple’s existing market given the potential of disruption by web3.0. Metamask which was removed from Google Play wouldn’t permit mining although this was the main reason cited for its elimination. Other crypto stakeholders are also complaining of unfair treatment by Google’s subsidiaries like YouTube.

A number of digital currency influencers raised complains that YouTube had removed their content from the platform in the course of December, 2019. Omar Baham, one of the popular crypto influencers, said in a tweet,

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Author: Lujan Odera

Coinbase Plans to Sunset $100 Million ‘Earn.com Portfolio’ to Focus on Coinbase Earn in 2020

Coinbase is planning to phase out Earn.com from their product portfolio and users have up to February, 2020 to make all withdrawals. The exchange had acquired this micro-task platform back in 2018 at around $100 million which was considered a significant investment within the crypto industry at the time.

A recent email was sent out to Coinbase investors whereby they were notified of the move. Coinbase noted that they will put more focus on ‘Coinbase Earn’ than the Earn.com, which has been in operation for quite a while. The product was designed to create an avenue for the learning and earning of individual cryptocurrencies as more industries integrate FinTech.

According to Coinbase, the new strategy for the “sun-setting” of Earn.com will probably yield better results given the potential of their newest alternative focus. Coinbase says millions of dollars have been distributed to Coinbase Earn participants since the initiative kicked off. In addition, users from 115 countries have been part of the program in which they not only learned but also could earn cryptocurrencies.

In 2019, Coinbase Earn had equipped its users with the skills to create MakerDAO CDPs. Furthermore, there has been knowledge dissemination on blockchain basics together with operating Brave browsers. This is instrumental to the growth of digital ledger technology (DLT)  as well as expanding the Coinbase market share in the crypto exchange space.

The San Fransisco based digital currency platform said that they have plans to make bigger moves in 2020 as we head for the long-awaited Bitcoin halving. Most notably is an intention to scale the Coinbase Earn portfolio by adding more campaigns that will promote blockchain technology. This also will involve linking blockchain platforms and bringing crypto closer to potential users through their interactive campaigns under Coinbase Earn.

Latest Coinbase News and Updates

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Author: Lujan Odera

New Patent Approval From Coinbase CEO Allows Users To Send Bitcoin To Email Addresses

Brian Armstrong, the CEO of Coinbase, has come up with the technology that makes sending Bitcoin (BTC) as easy as sending an email.

The patent was filed back in 2015 and granted on Tuesday. It’s a system that allows users to make crypto payments with their emails corresponding with their wallet addresses. Once one offers to send cryptocurrency to an email address, the amount introduced is sent automatically, as long as the sender has enough balance.

The Transaction Takes Only 48 Hours

It takes the system only 48 hours to clear after the receiver has verified the transaction. Cryptocurrencies that aren’t in use are kept in a vault, which can be retrieved only using the email address connected to the wallet. Since 2012, Coinbase has managed to make over $2 billion from transaction fees, but this email system doesn’t charge any fee. As the patent shows, the exchange will pay itself for the mining fees. It will be possible to make transactions to an external wallet address, but a fee will be charged for this option.

The Patent Refers to Only BTC

The only cryptocurrency mentioned by the patent is Bitcoin. It’s not yet sure if other coins will be supported. It seems that email providers won’t have any restrictions, so the users will be able to use their already existing email addresses if they want to. The system will also include a special exchange facility for those who want to make trades in fiat currencies from one of their linked bank accounts. It’s not yet clear if the exchange is planning to base a new service on the patent.

Coinbase Was Granted 2 Other Patents

Coinbase was granted 2 other patents on Tuesday. One is an app that makes sure the users’ accounts are complying with the local and international laws, while the 2nd is an enforcement protocol which shuts down accounts when they aren’t compliant. The system will most likely make crypto transactions easier for newbies. Back in August, Armstrong mentioned that he would like to develop an comprehensive financial system for people and businesses to have more financial freedom.

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Author: Oana Ularu

Coinbase’s Visa Debit Card Available In UK and EU, Adds First Stablecoin Support in Maker’s DAI

The Visa debit card offered by the crypto exchange Coinbase now has Ethereum-based DAI stablecoin support.

The news was released on Friday, when Coinbase Card made the announcement that DAI is the first stablecoin to be included in its offering. The debit card was launched in April this year and it allows UK and EU customers to spend the crypto they’re holding in their Coinbase accounts.

Coinbase Card added Support for Other Crypto Assets Last Month

In November, Coinbase Card added Brave’s token (BAT), Stellar (XML), Augur (REP) and 0x (ZRX). Besides, it furthermore supports Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) and Ether (ETH). The Coinbase UK head of marketing, JD Millwood, said in a recent commentary the offering of the debit card has managed to help many users spend crypto just as easily as they’re spending money from their traditional bank accounts, and that the Coinbase Card is going to be more in demand now that Christmas is coming.

10 More European Countries Added Last Month to Coinbase Card’s Portfolio

In November, Coinbase Card has expanded to 10 new European countries, making a total of 20 countries in which it operates. The newly added ones were Denmark, Liechtenstein, Sweden, Romania, Iceland, Norway, Bulgaria, Poland, Croatia, and Hungary.

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Author: Oana Ularu