Market Bets Big on Polkadot (DOT), the Already Here ETH 2.0

Stocks splits are all the rage nowadays. Although they don’t “change a thing in a world of fractional shares,” and happen particularly during the bull market, they bring irrational enthusiasm in the market as we saw with Apple and Tesla, and most recently with Eicher Motors.

This trend seems to be spilling into the crypto market as well. As we reported, the YFI community made an informal proposal for a 10:1 split. YFI’s yet to come but Polkadot (DOT) recently had its redenomination in a 1: 100 ratio.

After the split, DOT became the 7th largest crypto asset by market cap of $4.9 billion, as per CoinGecko. And some are expecting more from DOT, to replace even the third-largest digital asset XRP.

This is because “Polkadot is arguably the most important crypto project since the launch of Ethereum in 2016. Think of it as ETH2.0 without all of the activity that Ethereum currently has yet,” said Spartan Black of crypto fund The Spartan Group.

As DOT went past Bitcoin SV, Litecoin and others, trader Red said, “expecting all dead weight coins in the top 10 like LTC and BSV to get kicked out by legit and functioning projects.”

In just four days, the token jumped a whopping 105% to its all-time high of $5.75 yesterday. At the time of writing, DOT has been trading at $5.43.

Over the weekend, the most highly anticipated competitor to Ethereum was listed on Kraken and Binance. Similar to other platforms within the DeFi space, it offers incentive staking yields and Kraken announced support for it with a 12% annual yield.

However, the listing wasn’t without issues as the exchanges enacted redenomination before the agreed-upon Denomination Day by the Polkadot community, resulting in “the apparent price at approximately 100 times lower than the actual market price.”

Polkadot founder Gavin Woods, who also co-founded Ethereum called the exchanges “unscrupulous,” for making such a move as their actions put the community at risk.

Back in July, the project completed its final private token sale, just prior its launch in which it raised $43 million.

The network facilitates cross-chain communication and interoperability by connecting multiple blockchains with the advantages of sharding, scalability, transparent governance, upgradeability, and cross-chain composability.

Several DeFi projects are also integrated with Polkadot including the leading decentralized data oracles network Chainlink (LINK), lending and earning project Mantra DAO (OM), Ankr (ANKR), Ocean Protocol (OCEAN), and others.

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Author: AnTy

Elon Musk to JK Rowling: Massive Money Printing by Central Banks Making Bitcoin Look ‘Solid’

Yesterday, author J.K. Rowling asked that question, “I don’t understand bitcoin. Please explain it to me,” and about the entire Crypto Twitter jumped in to share their two sats.

Even founder and CEO of SpaceX and Tesla CEO Elon Musk chimed in to explain while attacking banks in the process, making the perfect case for Bitcoin.

“Massive currency issuance by govt central banks is making Bitcoin Internet money look solid by comparison.”

In a separate tweet, he also stated, “I still only own 0.25 Bitcoins btw.”

Apparently, “Elon gets it” every time!

Bitcoin… blah blah blah something

According to The Tie, immediately post-halving, the most dominant bitcoin narrative on Twitter is JK Rowling and Harry Potter.

This immense support the crypto community showed in explaining bitcoin, however, might have turned out to be overwhelming for her.

All that she has understood in the haze of her fourth “Old Fashioned” was,

“It’s blah blah blah collectibles (My Little Pony?) blah blah blah computers (got one of those) blah blah blah crypto (sounds creepy) blah blah blah understand the risk (I don’t, though.)”

But this didn’t deter the community. Here are just a handful of the responses.

And Justin Sun wanted to send some Bitcoin to help her better understand the world’s leading digital currency.

Some are even anticipating Bitcoin to be a part of the Harry Potter world now.

“The fact J.K. Rowling is tweeting about bitcoin show the inevitability of it. I guess she is still a “muggle”, FOR NOW, lol. Sooner or later, we will see bitcoin in a new Harry Potter book. Inevitable,” said Binance CEO Changpeng Zhao.

While some like Gabor Gurbacs, digital asset strategist at VanEck says, “Bitcoin isn’t for everyone anyway” and that over time it draws the best and brightest itself.

However, she did thank everyone who came to help, and no she does not own any bitcoin, yet.

“God bless every single one of you now earnestly explaining bitcoin to me as though I’ll grasp it if you break it down properly. Things like this are white noise to me. I cannot and will not ever understand Bitcoin, but I love you for thinking that I can or will,” said Rowling.

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Author: AnTy

MakerDAO Faces Another $28 Million Class Action Lawsuit Over Black Thursday Meltdown

The Maker Foundation’s troubles don’t seem to fade away, as it faces a class-action lawsuit after its protocol malfunction on March 12th. This meltdown contributed to a massive fall in the crypto market, which saw a 50% fall in the price of Bitcoin, for example.

A group of investors has filled another class-action lawsuit against the Maker Foundation and its associate in the Northern District Court of California. The class-action lawsuit aims to obtain more than $28.3 million in damages.

The lawsuit alleges that the Maker Foundation, along with Maker’s Ecosystem Growth Foundation, the DAI Foundation and the Maker Foundation both intentionally downplayed the risks involved with Collateralized debt positions (CDPs). Resulting in investors losing $8.5 million on March 12th. The complaint states:

“While misrepresenting to CDP Holders the actual risks they faced, The Maker Foundation neglected its responsibilities to its investors by either fostering or, at the very least, allowing the conditions that led to Black Thursday, all after actively soliciting millions of dollars of investment into its ecosystem.”

The main plaintiff in the case – Peter Johnson – will be represented by Harris Berne Christensen LLP, has filed three counts, which include: negligence, intentional misrepresentation and negligent misrepresentation in connection with the losses incurred by the investors.

MakeDAO has not tried to downplay the incident and has promised to look into the issue and address all the queries as directly as possible. However, they denied commenting on any of the lawsuits filed against the firm.

[Also Read: Top 11 Crypto Companies Face NY Class Action Lawsuit for ‘Unlawful Selling Of Securities’]

The Black Thursday Mayhem

The DeFi ecosystem works on top of the Ethereum ecosystem, where Ether is used as the main digital asset for collateral in the MakerDAO protocol, and DAI stablecoin is minted against the collateralized Ether.

On March 12th, just like any other asset, Ether’s price dropped suddenly and significantly leading to congestion on the Ethereum network. This simultaneously liquidated thousands of Collateralized debt positions (CDPs) on the DeFi platform.

Johnson has alleged that the project’s white paper assured investors that their collateral would be returned in case of a 13% drop. However, that did not happen, and a majority of these CDPs were completely liquidated contrary to assurances.

He further claimed that not just MakerDAOs Defi protocol, but its products including the popular decentralized application, Oasis claimed 13 percent penalties, being the highest strike for liquidation.

The complaint also mentions the Maker Foundation’s recent push for attracting investment through these CDPs in the form of educational efforts in association with the crypto exchange – Coinbase.

“The Maker Foundation and other third-party user interfaces informed users that, because their CDPs would be significantly overcollateralized, liquidation events would only result in a 13 [percent] liquidation penalty applied against the remaining collateral, after which the remaining collateral would be returned to the user,”

Johnson asserts that these advertisements for CDP investment intentionally excluded the risk involved with CDPs, which led to a personal loss of $200,000 in ETH.

Maker Foundation Call For Compensation of Liquidation Losses

The investors might have filed the lawsuit against the Maker Ecosystem for not revealing the risks associated with CDPs. However, the Maker community is working on partial compensation of losses for investors.

The foundation also conducted a governance poll on April 13 which led to the decision of partial refunding. Another governance poll in the coming week could decide the mode of currency through which the refunding will be initiated.

Johnson also revealed that he was aware of the refunding governance vote, but said that he was skeptical whether the vote would result in any form of real compensation.

Here is the full document:

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Author: James W

Here’s Why Big Fund Managers Won’t Be Buying Bitcoin Until it Passes Trillions

Quick Look:

  • Institutions don’t come until it gets big enough
  • Just keep on HODling and you get to rake in huge gains

The best way to weather the crypto market and earn serious gains on Bitcoin is HODLling.

All that an individual Bitcoin investor can do is HODL and they know it well and they do it well. As we reported, 11,580,000 Bitcoin hasn’t been moved in more than a year. This has been despite an 85% increase in BTC price during that time.

As Bitcoin enthusiast Rhythm Trader said, “Hodlers of last resort are insane.”

But this insanity can pay off extremely well because “Professional fund managers literally can’t hodl,” points out analyst Ceteris Paribus.

This deduction was highlighted in the Wall Street article “How You Can Get Big Gains That Wall Street Can’t.”

It reveals the “dirty secret” of the investment business that fund managers just don’t hold stocks and not because they don’t want to but because they simply can’t.

It has been found that small investors actually ave a “big edge” over the giants of Wall Street when it comes to capturing the gains. The reason is,

“to earn such superior long-term results, you have to withstand bone-cracking short-term downdrafts along the way—something most fund managers can’t do.”

It’s all about HODLing

The insight emerged from the analysis between a little known Jack Henry & Associates company and Warren Buffett’s Berkshire Hathaway.

If you’d invested $1,000 in Jack Henry stock at its closing price on Sept. 1989, you would have had a whopping $2,763,000 on Sept. 30, 2019.

Now, the same $1,000 invested in Berkshire Hathaway would have only grown to $36,000 and $16,000 in the S&P 500.

However, this would have only been the result of the determination, in other words, HODLing.

Because HODLing means weathering through the brutal winter of price drops and crashes. In the case of Jack Henry, it was in June 2001 through Oct. 2002 when the company’s shares fell 67% and then the stock underperformed the S&P by 72% points between Oct. 1996 and August 1999.

Also Read: Bank of America Merrill Lynch Calls Bitcoin (BTC) The Best Asset Class In The Last 10 Years

But why can’t professional investors withstand this kind of pain?

David Salem, co-chairman of New Providence Asset Management, who has been behind this analysis says,

“It’s potentially career-ending for a manager to hold such big interim losers.”

As for small managers, they have to sell if the position gets too large and dominate their portfolios.

Small stocks actually earn their highest return when they migrate to large.

Institutions don’t Come Until it gets Big Enough

As we saw in Jack Henry’s case, the company first sold its shares to the public in 1985, 9 years after it was founded. But as of 1996, 41% of the stocks were owned by insiders and it wasn’t until 2006 did about 5% of the shares were owned by institutional investors.

It was in Nov. 2018 that the company grew to a size large enough to join S&P 500, where it currently ranks at 402nd. Now, 94% of its stocks are held by institutions.

This is yet another best-case scenario for buying and HODL.

As such, professional fund managers will “buy Bitcoin once it passes a couple Trillion” says Paribus. This means individual investors are in the best position to rake in gains by just keep on HODLing.

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Author: AnTy

Transaction Fee Mining Exchanges Are Decreasing, Says CryptoCompare

  • The community involved in the crypto industry don’t typically like transaction fee mining.
  • CryptoCompare was established to bring more transparency into the cryptocurrency market.

The cryptocurrency community isn’t exactly a fan of transaction fee mining, criticizing this process heavily for quite some time. CryptoCompare recently released a report,  Exchange Review October 2019, which showed that TFM is slowly declining. In fact, between September and October alone, it seems that the exchanges that implement this type of mining has dropped 3.8%. The report noted,

“Exchanges that charge typical taker fees represented 66% of total exchange volume in October, while those that implement trans-fee mining (TFM) represented 32%.”

In October, a total of $370.3 billion was traded by crypto-platforms that charge a fee to do so, which is 9.8% higher than what was recorded in September. The exchanges that use TFM traded less than half of that amount ($181.42 billion), though they only showed a decline of 3.8% from September to October. Based on the data shown in the report, the rest of the volume accounted for the exchanges that don’t charge much of a trading fee, totaling $6.69 billion.

BitForex was at the top of the list for TFM exchanges, recording $34.8 billion for October’s total volume alone, showing an increase of 37.35% since the month prior. The second in the list was CoinBene, recording a 19.65% increase from the month prior for a total volume of $32.96 billion. Previously, CryptoCompare stated,

“Zero-fee exchanges as well as transaction-fee mining exchanges present a problem when it comes to assessing whether trading volume as well as pricing are legitimate due to the well-known criticisms of exchanges engaged in these practices.”

Of all of the transaction fee mining exchanges, transaction fees are 100% rebated with the use of exchange tokens from the exchange that allow it. Realistically, this opportunity can encourage traders to participate in more activity on the exchange in the hope of getting more tokens. The blog added that this frequently has features or dividends, which put exchanges at risk for hosting wash trading.

The Exchange Benchmark at CryptoCompare was developed as a result of concern regarding crypto exchanges getting involved in wash trading and other schemes to pump up volume. By publicizing these reports, traders in the market can have the transparency desired for the smartest activity.

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Author: Krystle M

Is There A Point In Running Your Own Ethereum Node Now?

  • “If we don’t stop relying on Infura, the vision of ethereum failed.”
  • This was Afri Schoedon, former Ethereum Core developer who quit the project in early 2019, describing the technology in October 2018.

As of last year, Infura was reportedly handling around 13 billion code requests per day and underpinning the majority of decentralized applications (dapps) in the Ethereum ecosystem.

However, Infura has been operated by a single provider, ConsenSys. As such, there were concerns about a single point of failure for the entire network.

Also, Joseph Lubin, the co-founder of Ethereum who also founded ConsenSys is an investor in Infura.

Now, on Oct. 4, ConsenSys fully acquired Infura announcing,

“…We’ve decided that a future inside ConsenSys is the best future for our team, our users and this rapidly emerging ecosystem.”

Back in 2018, Michael Wuehler, the co-founder of Infura, told CoinDesk,

“If every single dapp in the world is pointed to Infura, and we decided to turn that off, then we could, and the dapps would stop working. That’s the concern and that’s a valid concern.”

He further stated at that time that any dapp that uses Metamask is also “inherently” dependent on Infura, as a matter of fact, “nearly all dapps potentially depend on Infura.”

And this raises the bigger concern, decentralization applications are basically built on centralized services.

Centralization Issues Go Deeper

Moreover, more than 60% of the Ethereum nodes are running on the cloud, with the majority of them on Amazon Web Services (AWS). It operates almost 25 percent of all Ethereum nodes.

Comprised of 8,933 nodes, only just over 34 percent are hosted independently while the top 10 cloud hosting providers amount to over 57% of all Ethereum nodes. Furthermore, Alibaba Cloud, Google Cloud Platform, DigitalOcean, and Hetzner together host a major chunk of the network.

In such a case, if one day Amazon wants Infura no more, 25% of the network will be suddenly working no more. And if the rest of the cloud provider were to do the same, over half of the network will go dark.

Recently, cryptocurrency exchanges like Binance had problems with withdrawals due to AWS failures. Last year as well, South Korean exchanges were forced offline after AWS servers suffered nationwide failure.

This is certainly a real risk for a blockchain that is supposed to be decentralized but only seems to be making a move to centralization.

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Author: AnTy

Planned Sell-Off Causes XRP Prices To Crash By 40% On Beaxy Exchange

The crypto market is prone to manipulation. If you don’t believe it, you can just check the many examples that can be easily found. The latest one was a coordinated sell-off of Ripple’s XRP tokens on the Beaxy Exchange.

This new crypto exchange platform was just launched, but it had to suspend its activities for being targeted by manipulators. According to the reports, soon after the launch, the exchange suffering a massive XRP dump with a lot of people selling the asset at the same time.

In order to deal with this obvious market manipulation situation, Beaxy had no choice but to shut down the platform for a few days. It has been a rough start for the exchange, which was launched back in June. So far, technical issues, manipulation and the lack of infrastructure are getting in the way of the company.

Action was taken very quickly, as the abnormal volumes were pretty easy to spot. The prices tanked pretty fast and now all token wallets are frozen, so the manipulators are unable to pull their funds away from the exchange, which prevented more issues from happening.

Fortunately, the exchange will be able to identify the manipulators soon. The company had a Know Your Customer (KYC) system ready since its launch, so the people who caused the crash can be found. However, the exchange did not determine whether it will take action against the scammers or not.

Ripple, the responsible for XRP tokens, has not commented on the situation at the moment.

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Author: Bitcoin Exchange Guide News Team

Enraged South African Bitcoin Scam Victims Burn Down The House Of Alleged Scammer

Enraged South African Bitcoin Scam Victims Burn Down The House Of Alleged Scammer

You don’t mess with Bitcoin investors from Ladysmith or, maybe, well, you do, but your house gets torched. After several South Africans lost their money to a Bitcoin Ponzi scheme in the rural town of Ladysmith, they decided to torch the house of the alleged mastermind of the crime, Sphelele “Sgumza” Mbatha.

According to reports, a group of angry investors decided to loot and set on fire the house of the man who operated the alleged Ponzi scheme. Some people took electronics from the house, but it was unclear whether they were investors or not. The local firefighters were called to the house and ended the fire, but most of what was there was lost. Other items that were damaged included a luxury car.

According to a local community leader, Mbatha was “unreachable” so they decided to take matters into their own hands.

The crowd of angry protesters included around 1,500 people. Most of them, however, were not directly involved in the fire. The same community leader quoted before also affirmed that these people gathered in front of the Bitcoin Wallet (the alleged scam) office before they decided to torch the house.

These people decided to go to the police because it was falsely reported that the alleged scammer was arrested, but they didn’t find him there, so they decided to leave.

He affirmed that most of these people were very angry because they believed that the scam would make them rich. In fact, the truth could not be more different. The scam promised them a return on investment of 100% in only two weeks but it delivered nothing instead.

As soon as Mbatha ran out of money to pay the investors, he simply decided to shut down the company and they were left without any kind of support. He affirmed that this happened because hackers infiltrated his site and stolen his money, however, this is not very likely.

He was clearly operating a Ponzi scheme with returns that were simply too big to be true. The “hack” was probably just an excuse to run away with the money. Mbatha also lied that he was only an employee in the company when there was proof that he was actually the director of Bitcoin Wallets Achievers, the official name of the company.

The community leader also affirmed that the whole situation was very sad. A lot of people who invested were very poor and lost the little that they had in the shady business. Some people are claiming that Mbatha has decided to run away, but no one has either denied or confirmed that so far.

While Mbatha was still not being chased, he got known as the “Lord of Ladysmith”. People called him that because he was often seen in the streets with an expensive car and living an ostentatious life in the small town.

At the moment, Mbatha is not only being hunted by the mob, as the police are also after him in order to determine if he really robbed the money or not.

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Author: Gabriel Machado

Australian Central Bank Doesn’t Expect Bitcoin To Hit Mass Adoption Due to Payment Fees

Australian-Central-Bank-Doesnt-Expect-Bitcoin-To-Hit-Mass-Adoption

The Reserve Bank of Australia has ruled that Bitcoin and other cryptocurrencies don’t threaten Aussie dollars or other forms of fiat payment. After a review on cryptos, they think it’s “difficult to envisage” an outbreak of Bitcoin users in the country.

They think that if they have the fundamentals of the Australian dollar in place, they have nothing to worry about, as stated:

“As long as the Australian dollar continues to provide a reliable, low-inflation store of value, and the payments industry continues to work on the efficiency, functionality, and resilience of the Australian payments system, it is difficult to envisage cryptocurrencies presenting a compelling proposition that would lead to their widespread use in Australia.”

The article details out that there have been a lot of interesting innovations in terms of cryptocurrencies in recent times but ultimately concludes that, despite the various innovations and developments in cryptocurrencies, none are currently functioning as money in the economy.

They Join Blockchain Not Bitcoin Group

The recent evolution of cryptos to overcome the shortcomings has been acknowledged by them. However, they think that no cryptocurrencies currently function as money in Australia, or as widely used payment methods. They think that these developments and improvements in the crypto ecosystem have not added sufficiently to the overall reliability, functionality, and credibility of cryptocurrencies to make them an attractive alternative to established payment systems for everyday payments for the population at large.

They say:

“DLT is likely to continue to evolve, including in ways that are unrelated to cryptocurrency. For example, there are several private-sector initiatives focused on ‘private permissioned’ DLT systems, for example, Corda and Quorum, which – while not suitable for a widely used cryptocurrency – are being explored for use in financial market infrastructure and wholesale payments. Accordingly, the Reserve Bank will continue to study the implications of cryptocurrencies and DLT for the financial system, and the economy more broadly.”

The Reserve Bank of Australia and the government still consider crypto as high-risk assets and continue to inform the public of the risks affiliated with them in addition to driving for proactive taxation and data collection policy.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Sritanshu Sinha