Paid Network Planning to Redeploy Smart Contract After the Exploit

Paid Network Planning to Redeploy Smart Contract After the Exploit

The token minting feature exploit led the price of the PAID token to crash 97% to $0.1. The team asks not to buy the dip and to pull out the liquidity.

DeFi protocol, The Paid Network that describes itself as a “borderless legal toolkit,” has been exploited. The hackers exploited the contract’s token minting feature to create some 60 million PAID tokens.

This resulted in the price of the PAID token losing nearly 97% of its value to crash to $0.1. Just a fortnight ago, the token made a new all-time high at $5.85, as per CoinGecko.

“The team is planning to deploy the new minting contract then redeploy it to everyone”, said Kyle Chasse, founder of the protocol. In the early hours of Saturday, he tweeted,

“There was some exploit or attack on PAID token contract, Certik is actively helping us identify the issue. Please DO NOT buy or sell PAID tokens right now. This issue will be resolved, be calm, don’t worry. Feeling gutted, but handling it.”

It was during the late hours of Friday when the reports of the hack came, and the team announced that they are investigating the issue.

“We pulled liquidity, are creating a new smart contract, & will be restoring everyone’s original balances to before the hack. Those with staked, Lpool & UniFarm PAID will have their tokens be sent to them manually.”

The team has been asking the community not to buy the dips as it can expose the buyer to negative impacts. Not to mention, the team is planning to reissue the Paid Network smart contract. Users and buyers are urged to wait for the next update. The team said,

“Rest assured Kyle and the whole team is actively investigating, we removed all our liquidity, will take a snapshot right before the first dump happened, and will be restoring balances to that amount.”

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Author: AnTy

Cboe Feeling the Bitcoin FOMO; Will Launch a Crypto Index Next Year With CoinRoutes

Now, CBOE wants in on crypto, too, again.

Cboe Global Markets is planning to launch a suite of tools including crypto indexes, real-time ticks, and historical data by the end of the first quarter of next year, in partnership with CoinRoutes. Catherine Clay, Senior Vice President and Head of Information Solutions at Cboe Global Markets, said,

“Together, we can help bring transparency to the asset class and its market models by using RealPrice data to potentially create indices and tools that help clients better understand cryptocurrencies and encourage their participation in a nascent market.”

As Bitcoin continues to rally, up 175% YTD just blew right through the all-time high, hitting $20,800, along with the rest of the crypto market, institutions have been rushing in to jump on this bandwagon.

Everyone is long on Bitcoin, and earlier this month, S&P 500 revealed its crypto index plans through Lukka in early 2021.

Now, Cboe wants to provide data for the explosive cryptocurrency market. Interestingly, Cboe launched Bitcoin futures, along with CME, at the peak of the last bull market, in December 2017. But only to close its bitcoin futures in March 2019.

Now, Cboe wants back in, although apparently their corporate interest in digital currencies never declined.

Cboe has signed an exclusive licensing agreement with CoinRoutes, a New York-based trading software firm.

One of the largest stock exchange operators in the US, Cboe aims to reach a customer base of at least thousands initially with its real-time index data and then grow it to a global level. Michael Holstein, Chief Revenue Officer, CoinRoutes said,

“We believe existing arbitrarily weighted indices that do not take into account the different fees or actual liquidity available on crypto exchange platforms do not represent the true cost of buying or selling a given cryptocurrency.”

The company’s algorithmic products are built for both spot and derivatives products.

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Author: AnTy

Robinhood in Preparation for a Possible IPO Launch in Q1, 2021; Report

Robinhood might be planning to go public early next year, according to a recent publication by Bloomberg. This trading platform, whose popularity has risen in the past few years, is reportedly seeking advisers in the banking domain to support its Initial Public Offering (IPO) process.

Per the Bloomberg report, Robinhood could go public as soon as Q1 of 2021; sources opted to remain unidentified given this information’s private nature. However, they were also keen to highlight that the firm might change this position and abandon the IPO plan altogether.

While Robinhood’s official sources are yet to comment, this move might be a game-changer for the trading platform, given its value proposition to novice investors. Robinhood has become a darling to millennials and the tech-savvy Gen-Z, giving them exposure to various previously cumbersome assets to trade.

In fact, it is one of the popular trading platforms with access to crypto-assets and enjoys the backing of tech-focused VC’s such as Sequoia Capital. Other prominent investors that have allocated funds to Robinhood include Index Ventures, Andreessen Horowitz, Ribbit Capital, DST Global, and D1 Capital Partners.

The latest Robinhood valuation is $11.8 billion; this was after the firm raised its series G funding, which totaled $200 million. With the murmurs of an IPO, Robinhood could soon be listed in the U.S stock markets, a move that would expose the firm to more market liquidity.

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Author: Edwin Munyui

IRS to Revise Form 1040 to Make it Harder for Traders to Escape Crypto Tax Obligation

The Internal Revenue Service is planning to change the 2020 tax form and make sure all taxpayers report about their cryptocurrency transactions.

The standard 1040 form will be altered by adding the following questions on the front page:

At any time during 2020, did you sell, receive, send, exchange or otherwise acquire any financial interest in any virtual currency? And the taxpayer is required to check the box “Yes” or “No.”

“This placement is unprecedented and will make it easier for the IRS to win cases against taxpayers who check ‘No’ when they should check ‘Yes,’” says Ed Zollars, a CPA with Kaplan Financial Education.

The Wall Street Journal first reported the adjustment on Friday, noting that the question was previously, in 2019, in a spot that not all taxpayers had to fill out. But now it has been moved just below the taxpayer’s identity.

With this, the IRS is stripping any excuse for ignoring the rules. This also means, whoever fails to pay the taxes they owe on crypto transactions can be subject to penalties and, in some cases, even criminal prosecution.

“Primarily based on what we’re seeing, individuals are beginning to get scared,” said Chandan Lodha, the chief working officer of Cointracker, a software program firm promoting crypto tax-prep providers.

The tax agency has been focusing on virtual currency transactions for some time now. Just earlier this month, the IRS issued guidelines clarifying how cryptos are treated for tax purposes when received in exchange for certain services. An individual has to report the digital currency as ordinary income for receiving it through a crowdsourcing platform in exchange for providing a service, as per the memorandum.

In late August, it had also been affirmed that taxpayers must declare their cryptos as income, which were obtained for “microtasks.”

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Author: AnTy

Abra to Venture Into Global Financial Services Powered by Stellar’s Blockchain

Abra, a popular crypto-fiat wallet along with an exchange application, is planning to create a decentralized global banking solution built on top of Stellar blockchain. The move could be inspired by Stellar’s $5 million investment in Abra earlier this year.

Bill Barhydt, CEO of Abra during the SDF’s digital second quarter review meeting on July 15, talked about the company’s roadmap and emphasized particularly on “interest-earning capability,” which will be one of the most sought after features in coming days. Barhydt while talking about the upcoming services and features and the interest-earning services commented:

“This allows consumers, for example, people who aren’t even familiar with cryptocurrency, to store dollars and earn significant interest on those dollars.”

During the meeting, Barhydt also said that the interest-earning features would also be made available for cryptocurrencies along with the staking services.

How Does Abra Work?

Abra being a crypto/fiat wallet exchange app and now collaborating with banks, exchanges, and other financial entities and acts as a liquidity provider through its platform. Recently it has shifted its focus towards retail players to offer its application and expand its reach.

Elaborating on his plans for introducing interest-earning, Barhydt explained that they would partner with large institutional players who would work in tandem with its backend infrastructure to offer “a very sophisticated lending system.” Talking about their plans and how Abra aims to create the global banking solution, Barhydt said:

“For us to take this to another level, Abra is building an entirely new part of our business to facilitate the movement of funds globally, in real-time, using the Stellar network. What this will enable for us in all forms of global lending.”

He also explained that the success of defi in the past couple of years made him believe that the crypto market is more than ready to accept crypto lending and interest-earning potential that these digital assets posses. He explained:

“We want to take this to another level, and use the Stellar platform to enable traditional banking applications at a global scale truly.”

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Author: Silvia A

China’s Testing its CBDC on Tencent-backed Food Delivery Giant

The People’s Bank of China is now planning to test its state-backed digital currency on the Tencent Holdings backed food delivery giant Meituan Dianping, just days after the reports came that DiDi Cuxing, the Chinese equivalent to Uber will be piloting the DC/EP.

Meituan has been in talks with the research department of China’s central bank on the real-world uses for the virtual legal tender dubbed Digital Currency Electronic Payment. The research wing is also in discussion on trials with another of Tencent-backed company Bilibili that streams video, reported Bloomberg.

Just like Didi, Meituan processes billions of dollars in daily transactions, the perfect stage for government-backed digital currency’s mass adoption. This digital yuan would further offer the government greater control over its financial system. According to some, it could even push the US dollar from the center of the global currency system.

The reports also helped Meituan, whose shares spiked, pushing it out of the negative territory.

Meituan and Bilibili offer various online services ranging from food delivery to e-commerce and video games. Currently, they are using the payment systems of Tencent and Alibaba’s Ant Group.

There is no date on a national rollout, which could still be years away. DC/EP was the result of five years of research and began its pilot program for the digital currency only a few months ago.

Coronavirus pandemic accelerated the development of digital currency in 2020, which combined with China’s progress, has other countries rushing towards developing their own state-backed virtual currency as well.

The Bank of Sweden is actively exploring “e-krona” while the US Federal Reserve is studying digital currencies but says it has no plan to issue a digital dollar.

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Author: AnTy

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year.

Crypto lender BlockFi is looking for a veteran financial professional (CFO) that could help the company “guide and position the finance team for late-stage investment, acquisition, and/or IPO.”

The company is looking for someone with over 15 years of experience as a corporate financial leader in public markets and financial markets. It further mentions in its job posting that the person also needs to have an IPO experience and scaling teams for SOX compliance and IPO ready.

BlockFi had a successful Q2 2020, and in the same quarter, the company hired former American express vice president, Wittney Rachlin to launch the bitcoin credit card that could come in the 4Q20.

In Q1 of this year, the company raised $30 million in a Series B funding led by Peter Thiel’s Valar Ventures along with Morgan Creek Digital, Castle Island Ventures, Arrington XRP Capital.

NYSE-backed Crypto Exchange

The other company planning to go public is crypto exchange Coinbase.

For now, the company is planning to file for an IPO with the SEC but hasn’t registered with the agency yet. It is, however, actively pursuing investment banks and law firms to assist with the process. The listing could come as early as this year or next year.

Interestingly, the NYSE is one of the exchange’s investors along with the likes of Y Combinator, Andreesen Horowitz, Union Square Ventures, and Tim Draper.

Coinbase was valued at about $8 billion during its last round of venture funding and had over 1000 employees and 35 million users in over 100 countries.

The good thing is they are not going the usual IPO route but DPO, which means they bypass institutions and banks and give retail the same access as everyone.

“The real irony is that, if they did a token sale, it would only be available to accredited investors,” commented analyst Ceteris Paribus.

An Opportune Time?

San Francisco-based Coinbase is a popular cryptocurrency exchange that has the highest amount of BTC balance, and no other exchange comes any close to it. It has been close to surpassing 1 million BTC in balance only to slide down after the March sell-off but remains above 900k BTC.

Founded in 2012, Coinbase has contributed a lot to the advancement of the crypto ecosystem. And the news of it going public that is taken as a bullish narrative by the market has come at a time when the market has been rallying amidst the COVID-19 pandemic.

The Fed is pumping in trillions of dollars, which is popping the prices of almost every other asset, from the share of bankrupt companies to the latest IPOs.

Lately, altcoins have also been surging, giving off the vibes of 2017, with many expecting it to be the start of an altcoin season. During the 2017 bull run, Coinbase boasted $1 billion in revenue.

But Coinbase also faces criticism in the bitcoin community for listing the “shitcoins” and not supporting projects that are bitcoin-related such as Lighting Network.

Not to forget, the tons of controversy that continue to surround Coinbase. Recently, it came under fire for selling its customer data to the IRS and DEA, the exact opposite of what bitcoin stands for — censorship-resistant.

So, it would be interesting to see how this IPO affects Coinbase and the market in terms of mainstream adoption and attracting new investors and institutions.

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Author: AnTy

Bitcoin to Roar Higher on PayPal Selling BTC? Time to Buy the Rumor

Yesterday, the news of fintech giant PayPal planning to roll out cryptocurrency buying and selling for Paypal and Venmo got the crypto market excited, and bitcoin went up to $9,800.

Reportedly, the company plans to build in wallet functionality for users to store their crypto in the app as well. The service could be rolled out as soon as in the next quarter.

To source liquidity, Coinbase, which has a relationship with PayPal going back to 2016 and Bitstamp, are the likely contenders.

The 300 million users base of PayPal is the reason behind this excitement as the online payments company would immediately broaden the potential investor base of cryptos. Also, Venmo comes with 50 million users, the largest consumer finance application in the US.

PayPal is also the company that froze WikiLeaks accounts, which then went the Bitcoin route. So, “It only took a decade for this to come full circle,” said developer Jimmy Song.

PayPal supporting Bitcoin no doubt will be “amazing for adoption,” but Jesse Powell, CEO of crypto exchange Kraken, warned, “don’t expect PP to change their policies on account closures. They’re still a centralized choke point, and the government will continue to commandeer the financial system for extrajudicial sanctions. Not your keys.”

On being countered by crypto exchanges being the same thing, Powell advised, “don’t leave more coins on Kraken than you need for your activity,” either.

“If we get a legit government order to close your account and hand over the coins, you can say goodbye to your precious savings. Great thing about crypto is you can self custody,” Powell said.

“Buy the Rumor, Buy the News, Sell the Implementation”

For now, the news of PayPal and Venmo looking into selling crypto-assets directly to their customers is based on some industry sources, and there is no knowing if it will be true.

“Still, the headline itself is more than enough to add fuel to this massive risk-on rally. So in the words of Louis Jordan. … Let the Good Times Roll,” wrote analyst Mati Greenspan in his daily newsletter.

Though a rumor currently, speculation around Facebook launching Libra started similarly in February 2019. And when the social media giant announced the launch in June, “the market roared higher,” said economist and trader Alex Kruger.

He also pointed out how several pieces of news paid handsomely in the past two years in the crypto space. In 2017, ETF rejection, China banning bitcoin, CME futures launch, the likes of CFTC sending subpoena Bitfinex and Tether, and fake news of ETF confirmation was such news. Then in 2019, we saw the market reacting to Libra and Chinese President Xi Jinping supporting blockchain technology.

Instead of ‘Buy the Rumor, Sell the News,” the right thing to do is ‘Buy the News’ as well, and ‘Selling the implementation’ is best, he said.

“Crypto going mainstream! This would be massive and should help prices run over those pesky call sellers,” Kruger said.

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Author: AnTy

After Raking in $200M, Kazakhstan Now Plans to Attract $740M Investment from Crypto Mining

Kazakhstan is planning to attract 300 billion tenge (about US$740 million) of investments from cryptocurrency mining in the next three years, said the Minister of Digital Development, Innovation, and Aerospace Industry Askar Zhumagaliyev.

Last week, while addressing the Senate, the minister shared his plan, as per the local media reports.

A draft bill regarding the regulation of digital currencies was also discussed on the floor which bans the issue and circulation of digital currencies “except as otherwise provided by law.” It doesn’t ban crypto mining though.

While addressing the bill, Zhumagaliyev pointed out the growth of the cryptocurrency sector in the United States, Sweden, and South Korea. He also noted the 14 digital farms in Kazakhstan, mostly located in the country’s northern regions and in Pavlodar, East Kazakhstan Regions, and Uralsk.

These farms are built near energy sources and have already brought in 82 billion tenge (just over US$200 million) of investment in the country. Zhumagaliyev said,

“According to the report that we have prepared with international experts, we expect another 300 billion tenge (US$738.4 million) in the next three years as digital investments and in general, the further development of digital mining.”

Back in December 2019, there have been reports that Kazakhstan lawmakers won’t be taxing income generated from crypto mining.

This was because the country considers crypto mining as technological progress and tax liabilities are applied to the income made in “real money.” But at the same time, it noted that mining farms using mining hardware to offer crypto mining services will be susceptible for taxation just like data centers.

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Author: AnTy

FSA Registered SBI Holdings Backed Crypto Exchange FXcoin Ready to Start Trading

The Japanese crypto exchange FXcoin Ltd. is now planning to offer trading services as Bitcoin makes a recovery after coronavirus-fueled turmoil.

In March, Bitcoin recorded one of its biggest drops of about 50% by falling to $3,850. Since then, we have recovered over 85%, currently trading just under $7,200.

As we reported, in the past month, despite the violent sell-off, retail investors flooded in to buy the dips. Bitcoin whales are also surging to 2017 levels while long-term investors are increasing their positions and accumulating more BTC.

A previous Deutsche Bank AG veteran is ready to begin offering BTC transactions on their platform next month, with these signs of market restoration, and over 2 years after it was founded, reported Bloomberg. FXcoin just began approving requests from potential clients that want to open new accounts.

Planning for the Future

FXcoin, funded by SBI Holdings Inc. is one of the 23 crypto exchange operators that are enrolled with the Financial Services Agency (FSA) after Japanese authorities began securing industry failures from several hacking incidents in the country.

Currently, the company has about 36 staff members and hopes to add more employees to around fifty by the end of 2020 and hopes to begin gaining in profits by the end of 2021.

FXcoin also has future visions of growth by adding more affiliates of SBI Holdings including Litecoin (LTC) and Ripple (XRP).

The company is planning to eventually build a swaps market to allow investors to hedge against the high volatility persistent in the market.

Bullish on Digital Currency Prices

During the recent sell-off, however, Bitcoin was not the only one affected by the coronavirus pandemic, the world markets were hit and now a recession seems very likely.

However, central banks have injected liquidity into the market and announced trillions of dollars worth of stimulus measures in an effort to battle the economic backlash by firing up their money printers. According to FXcoin’s CEO Tomoo Onishi,

stimulus measures to fight the economic fallout from the pandemic will flood global markets with cash, causing some money to flow into digital currencies.”

Despite Bitcoin plunging in line with conventional assets and putting a question mark on its safe haven status, Onishi is “bull on virtual currency prices.” He also said “There is no asset that’s absolutely safe,”  and “there is evidence that digital currencies don’t move in tandem with conventional assets over the long term, making them worth including in a portfolio to diversify risks. “I’m a bull on virtual currency prices,” he said.

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Author: AnTy