ASIC Bitcoin Miner Manufacturer, Ebang, to Launch Crypto Exchange Outside China

  • Ebang International Holdings to launch an offshore crypto exchange that can potentially double their income to $200 Million. This, alongside their new consultancy venture which, will supplement their dwindling revenue by 40% in 2020 will work to reduce their overreliance in the ever-volatile cryptocurrency.al

News has now surfaced that Bitcoin equipment manufacturer; Ebang International Holdings intend to unveil a crypto exchange to operate outside China’s jurisdiction. This is in an attempt to generate more revenue for the firm.

The BTC rig manufacturer could see a revenue increment of up to 40% by the end of this year emanating from their new consultancy business that involves managing datacenters for clients. Chief Financial Officer, Chen Lei in an interview with a media outlet remarked at the potential of doubling their earnings to $200 Million with the launch of the crypto exchange. This timeline could potentially be stretched to 2022.

Dwindling Fortunes

Notably, their 2019 revenue of $109 Million was significantly dwarfed by an excess of $300 Million they generated in 2018. Generally translating to net losses in both 2018 and 2019. This is due to their overreliance in the ever-volatile BTC which, has plummeted significantly well below $4000 before stabilizing. The BTC is currently trading at $9154.21 enjoying a market volume of $15911378811 as per this writing.

The Hangzhou-based ASIC rigs manufacturer filed a $100 Million IPO with SEC this year, April. Their share price after, however, shrunk by almost 4% after June 26th IPO to fall below the projected $4. Most of the funds from the IPO would go into the production of next-gen rigs and their overseas expansion campaign.

According to Mr. Chen, almost 10% of the total revenue generated would go to facilitate transaction fees as they seek to set up a regulatory compliant exchange outside China. This was partly due to ongoing purge on crypto activities in China as they march towards realizing their own CBDC, the digital Yuan.

However, it is yet to be seen how the escalating rows between Beijing and Washington will affect Ebang’s access to US capital markets.

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Author: Lujan Odera

Major Crypto Projects Help Launch, PayID, An Open Source Payment Tech Simplifying Sending Money

  • The challenges of double, triple confirming crypto addresses could be solved by the new PayID system launched by the Open Payments Coalition – Ripple’s Xpring developers, Blockchain.com and Brave.
  • The platform aims at enhancing sending money, making it to be as easy as sending an email number.
  • The platform will replace the long alphanumeric wallet address with simpler, memorable, and human-readable addresses/ IDs.

Over the years, users have lost their funds over a human error in typing or copy-pasting their lengthy blockchain wallet IDs. With this new technology, all users will need is an email like username to send money across blockchains and later fiat currencies as well. An official Xpring developer account tweeted,

“Sending money should be as easy as sending an email. With #PayID, sending payments across any network and with any currency has never been easier.”

A global presence

According to reports from Ripple, the Open Payments Coalition currently boasts of 40 customers and partners, including payment processor BitPay, Flutterwave, Mercy Corps, and GoPay. Furthermore, with over 100 million customers in the coalition, the adoption of the PayID is expected to be swift.

Several banks, payment service providers, digital wallets, custodians, or remittance providers will be able to instantly send value across the globe through a peer to peer platform. The PayID system will, however, need to compete fiercely with the launch of Facebook’s Libra, also targeting to offer similar services to billions of customers.

Ripple’s PayID also complies with the FinCEN requirements and FAFT directives to provide a safe and regulated platform.

Is the lack of fiat gateways risky?

Despite the hype surrounding the payment solution, there remains a black spot in the coalition – a lacking representation of traditional financial companies as partners. PayID website describes the platform as a “peer-to-peer platform with no central authority,” which maybe scares these heavily regulated fields from participating in the coalition.

The consequence? For a start, the platform will remain a crypto-only transaction platform despite the website saying otherwise. To take over the globe in payments and settlements, PayID will need to offer a direct fiat channel, similar to PayPal, to banks and financial institutions. Not only the crypto companies.

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Author: Lujan Odera

bZx Changes Its Dev Framework After Hack; Integrates Chainlink Decentralized Oracles

bZx exchange releases changes to its platform in light of the recent double attacks on Valentine’s Day. In an announcement released on Tuesday, the co-founder and CEO of the exchange, Kyle Kistner, further apologized for the $2.5 million hack on 1inch.exchange caused by a bug on its Fulcrum platform.

In a bid to prevent future troubles on the platform, the bZx dev team is reworking its oracle design, development framework, and review processes for new code.

bZx exchange loses over $2.5 million in hacks

In a widely covered bZx exchange double hack on Feb. 14, a user exploited a bug on the system and made away with $365,000 USD in ETH leading to widespread panic. Less than 72 hours later the platform experienced yet another exploitation of over $645,000 USD in ETH too.

While the first hack was an exploitation of the smart contract code, the second hack originated from a bug in the oracle system. In order to prevent this in the future, the exchange is adopting new oracle designs by integrating decentralized oracle, Chainlink to its system. [Not the first time bZx has partnered with Chainlink]

The company is currently planning on integrating Band and Uniswap v2.0 oracles to its platform in the future.

“Chainlink’s Price Reference Data Contracts are decentralized oracle networks made up of multiple independent, security reviewed, and Sybil resistant node operators.”

Furthermore, the exchange released a newly refactored code that will be implemented once economically audited to prevent such cases of exploitation.

“We will transition to an EIP-like system for cataloging new features and improvements to the protocol. This will make the process of how new code gets added completely visible to the public. Features should not be added as a surprise or at the last moment.”

He further added,

“We will never again publish unaudited code, no matter how few lines or trivial.”

bZx to pay for the losses

All the losses during the hack will be absorbed by the bZx exchange and protocol stakeholders. Currently, the company is working towards directing the profits towards the insurance fund to be able to repay the debt owed on the platform. The post reads,

“Given the current value of the insurance fund and its annualized rate of growth, it should be more than able to cover the loss at the time it needs to be realized in the year 2285 AD.”

Kristner apologizes for 1inch.exchange bounty reward

About three weeks before the two successive exploitations, 1inch.exchange came forward complaining that they found over $2.5 million from a vulnerability on the Fulcrum exchange. However, bZx never paid the devs their bounty fee or communicated the issue to the users.

Kristner came forward on his blog post to apologize for the time wasted in paying the bounty. He remarked,

“Rather than simply pay the full bug bounty immediately, with extreme gratitude for finding such a serious exploit, we tried negotiating. This was a serious mistake that we need to take responsibility for. Under no circumstances should this have happened, and we sincerely apologize.”

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Author: Lujan Odera

Vitalik Buterin Back on Dumping his Ethereum? It Could Crash ETH into Double-Digits

  • Ethereum co-founder Vitalik Buterin keep on dumping his Ethereum
  • Chances of ETH even crashing to double digits
  • Etherem 2.0 puts its under regulators’ scrutiny

A total of 214,953 Ether worth about $26.8 million has been sent to cryptocurrency exchanges on Dec. 25.

ViewBase, blockchain analysis company reported 99,987 of these Ether has been sent to Huobi, 89,058 ETH to Kraken, and 25,908 ETH to Binance.

The 90k of Ether sent to Kraken particular originated from a single whale which received most of its Ether from Ethereum co-founder Vitalik Buterin’s wallet address. This wallet still has a balance of 350,000 Ether left.

The firm deduced that the whale is likely to be an Ethereum developer or Buterin himself.

Is Buterin dumping his Ethereum?

According to the Reddit post, Buterin previously revealed that he received a total of 630,000 ETH, 553,000 out of which has been from the genesis pre-mine and 150,000 from the developer purchase program.

In April 2016, he sold 25% of his ETH position as he divulged, “I’ve sold about a quarter of my ETH. Meh, I am not going to apologize for sound financial planning.” As per this, he sold about $1.1 million’s worth.

Just like other founders, such as Charlie Lee of Litecoin who sold all of his LTC during the last bull run, Buterin than sold another of his 30,000 ETH around the top in December 2017.

As we reported, Buterin also persuaded Ethereum Foundation to sell 70,000 of their ETH at its peak.

Now, 90k ETH has been moved by Buterin again.

Chances of crashing to double digits

Eth currently is trading at $125, down 8% on a year-to-date basis and down 92% from its all-time high of $1,570.

But such a huge amount of ETH, if dumped in the market, would put selling pressure on the second-largest cryptocurrency that could see its price sliding even more.

Currently, analysts and traders aren’t feeling very bullish about it either.

Ethereum price chart, Analyst CryptoDude says, “looks like utter shit.”

“Don’t get your hopes up until it reclaims $365 – if it does so then we can talk about 1k+ targets. Until then this is a short every bounce setup,” explained the analyst.

However, until we move back to $160, there are even chances for crashing to double digits.

However, not everyone is bearish…

Ethereum 2.0 Puts It Under Regulators’ Scrutiny

But Ethereum’s pain isn’t limited to just price. Its much-anticipated 2.0 Proof-of-Stake (PoS) transition will also put it under SEC’s scrutiny.

Last month, US CFTC Chairman Heath Tarbert indicated that the agency and US SEC is undertaking a careful analysis of Ethereum 2.0 that fintech attorney Grant Gulovsen says could have

“significant negative implications for the Ethereum Network’s planned upgrade as well as the wider cryptocurrency market.”

Gulvosen says he isn’t trying to create FUD, but encourage those who develop digital asset-based technology to accept that laws apply to their products and developments and they need to proactively engage with regulators, so as not to “run afoul of applicable legal and regulatory frameworks.”

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Author: AnTy

Ethereum Classic (ETC) Announces Astor Network Testnet Mining is Ready in Response to 51% Attack

Ethereum-Classic-ETC-Announces-Astor-Network-Testnet-Mining-is-Ready-in-Response-to-51-Attack

Ethereum Classic network faced a double 51% attack on its platform in the month of January which led to a loss of $1 million. The attackers were able to accumulate 51% of the hash power required to manipulate the network and continued the attack for several days. The attackers used their control on the ETC blockchain to manipulate a series of deposits on several cryptocurrency exchanges by reversing them. As a result of the attack, Coinbase had to halt ETC trading on its platform.

The developers on the ETC blockchain has come up with the Astor testnet based on ECIP-1059 in response to the 51% attack on the network. The Astor testnet make use of SHA3 or Keccack256 cryptographic signature, as it is a Proof-of-Work [PoW] method. The official Twitter handle for ETC also released a statement on the release of the testnet.

How Would the New Astor Testenet Help in Avoiding 51% Attack in Future

Astor Testnet which leverages ECIP-1059 can recognize the need of the network to branch out from the similar algorithm used by its forked sibling Ethereum (ETH). The importance of ECIP-1059 was explained by Alex Tsankov, DApp Direct’s operator in the blog post. The blog went on to talk about the transparency in the hashing algorithm of the network and noted that the use of SHA3 protocol would promote equal opportunity to the miners around the globe.

Although Proof-of-work consensus is known to prefer those miners who have better and more powerful mining equipment, the community believes that the latest protocol would promote equality in the mining community. SHA3 has been designed by the Keccak team and being touted as a

“safer block production,”

by many.

Tsankov seems to be a big fan of SHA3 as he tweeted,

“SHA3 Mining on Astor Testnet has begun! My 2 CPU miners are currently putting out a combined 435,000 hashes per second. A remarkable performance from SHA3 – a true mark of quality.”

At the time of writing, the average block time for the ETC network stood at 38.80 seconds, and the average network hashrate was at 434.5 KH/s, with the difficulty at 16.84 MH.

[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: Bitcoin Exchange Guide News Team