Experts Issue Warning On Crypto That Will ‘Increase In Value Faster Than Anything Else In History’

If something seems too good to be true, chances are it is.

A new cryptocurrency has entered the market that is “designed to go higher, faster, and retain its value.”

However, currently, it values at $0.00 and is listed on only EtherDelta and Bidesk exchanges and haven’t made it to the market aggregating websites like CoinMarketCap.

This crypto-asset called HEX which is making such a bold statement is a fresh experiment in the market that market commentators are warning people against, calling it a “scam” and comparing it with the Bitconnect.

In 2016, the open-source crypto project Bitconnect was released with a high-yield investment program, a Ponzi, where users were to lend the value of BCC coin in return for interest payments.

Users traded their Bitcoin for Bitconnect Coin on the lending platform, where the interest payout was determined by “trading bot” and payouts were calculated as a fraction of the open and close price of BTC.

After rising to nearly $500 value, the coin plummeted below $1 after the platform administrators closed the learning platform in January 2018.

But What is HEX?

Originally known as Bitcoin HEX, this cryptocurrency is the brainchild of serial entrepreneur and marketing expert Richard Heart. On Dec. 2, 2019, HEX completed the snapshot and is now in circulation.

According to the HEX website, the leading cryptocurrency Bitcoin can be mined, sent, and received but doesn’t allow to earn interest on unless you entrust your BTC to a “centralized third party.”

Here, you need to send your HEX, claimed by the BTC users — 10,000 HEX per BTC — or acquired in exchange for ETH, to the same smart contract that minted the HEX in the first place and it credits you interest.

HEX is a Certificate of Deposit (CD) and the more the holders’ stake, the less the interest. Users who lock up a greater amount of HEX, and for longer periods, get to earn the highest rewards. HEX’s FAQ claim it will always be able to make the payouts.

Unlike Bitcoin’s fixed 21 million supply, the primary factor behind the narrative of it being a store of value, “only guesses can be made” about HEX’s supply as it is a function of “how many coins are staked.” And bonuses will further increase it.

Another issue with this project is its “origin address” that earns as much of the rewards as other users do. Though Hearst says this address is not under his control, the lack of transparency is surely a matter of concern.

As for its long term goal, HEX aims to replace gold as a store of value and credit card and payment companies. However, Bitcoin is the only cryptocurrency that has gained a high level of adoption among retailers and institutions alike and no other cryptocurrency from thousands available in the market has come even close to its level.

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Author: AnTy

Bluebook of Blockchain Report: Over 25,000 Chinese Crypto Companies Tried Issuing Cryptoassets

The Chinese blockchain market seems to be a very powerful driver for cryptocurrency adoption. This time, over 25,000 blockchain firms in China have tried to issue their own crypto tokens. This is according to a recent report released by financial and technology authorities in the country.

Chinese Companies Tried Issuing Cryptocurrencies

The report that was led by the central bank of China, explains that 89% of blockchain companies in the country might have tried to release cryptocurrencies to the market.

The report explains this is equal to around 25,000 companies compared to 4,000 that are focused only on distributed ledger technology (DLT).

China is becoming an important hub for cryptocurrency investment and development. There are several companies in the country that are expanding their services and trying to offer new products.

However, the Chinese market is highly regulated. They have imposed a total ban on Initial Coin Offerings (ICOs) and it has also been against Bitcoin (BTC) trading activities during the last few years.

At the moment, the government didn’t ban Bitcoin mining operations in the country. This is one of the regions in the world with the largest number of miners.

As per the report, there are more than 14,000 DLT-based firms that are located in the Guangdong province. Other companies are also located in Shenzhen, Beijing and Shanghai.

Furthermore, the report shows that the online fraud market in China has surpassed 100 billion Chinese yuan, or over $15.6 billion. Several crypto firms are just scams that aim at stealing users’ funds.

The Chinese government has also been pushing for wider blockchain and DLT adoption in the country. Xi Jinping, the President of China, urged for an acceleration in the adoption of blockchain technology.

This report would also help Chinese authorities understand how to regulate the emerging financial technology market and how to better deal with cryptocurrencies and blockchain technology.

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Author: Carl T

Crypto Trading Enthusiasm Returns in China, Prompting More Scrutiny from Country’s Regulators

The Central Bank in China seems set for another round of crypto crackdowns after President Xi’s latest remarks revived speculation on blockchain technology. Financial regulators in each Shanghai District are required to search and conduct an inspection of all suspected crypto companies and exchanges by 22nd November.

A notice issued by the Shanghai Internet Finance Rectification Agency noted that the regulators are expected to hand in their reports to the central bank by close of business on that day. The notice which first appeared on the web on Friday morning was later confirmed by Caixin, the Chinese Business Publication.

Emerging Decentralized Technologies

This latest move taken by the financial regulators has underscored the complicated relationship that China has with blockchain technology and other emerging technologies. In a speech made at the start of November, President XI asked his fellow countrymen:

“To help accelerate the development of blockchain technology.”

It’s worth noting that China has for many years been considered a top destination for crypto miners. But the government has also been persistent on issuing blanket bans on initial coin offerings and crypto-to-fiat trading, a move that began nearly two years ago. The blanket ban means that a majority of the population in the country has not been able to use crypto trading facilities.

Social Media Ban

Weibo, the China equivalent of Twitter has also gone ahead and banned its platform users from posting or publishing blog posts and content that contain the terms “crypto trading, “and “Blockchain.”

It went on to add that posts of this nature contained details that were in complete violation of local laws, which means that users posting the content were contravening Weibo’s community terms. As of Friday, it was not clear when this restriction was enforced, as users could still publish content containing the two phrases, as long as the terms were not used together.

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Author: Daniel W

Popular Bitcoin Buying App from Square Cash is Now Tacking On Fees

Jack Dorsey may claim that he loves Bitcoin, but it seems that he’s not letting his clients purchase Bitcoin for free. Starting now, Square Cash will start to charge fees that can go as high as 1.76% on any BTC purchase made on the app.

According to the company’s official website, fees can be charged when making transactions with BTC. All fees should be listed before the transaction is confirmed, so the users will be able to know how much they will end up paying this way.

No one seems to know for sure when the fees started. Back in March, no fees were charged, but this has changed recently. Coindesk was the first to point out that fees are being charged and, so far, the company has not verified whether all users are being asked to pay the fees or if they have not rolled out to all of them.

Fees Are Still Smaller Than The Ones From Coinbase

Despite the fact that nobody likes to pay fees, Square is still charging less than Coinbase. The largest American crypto exchange has fees ranging from $0.99 USD for any purchases below $10 and sometimes the flat fees can be as high as 6% in some cases.

This has surely made the company profitable, as Coinbase earned over $2 billion USD since 2012, but it did at the expense of its customers.

As Square Cash is getting more customers, fees were expected. This is how companies make money, anyway. Fortunately, there are many other services out there with smaller fees if you wish to pay less.

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Author: Hank Klinger

CoinShares CSO: Wall Street Using Bitcoin May Not Be A Win-Win Situation

Most of the crypto community seems to believe that institutional traders adopting Bitcoin can be a huge thing for the market. Surely, prices will go up, but is that the right way for the network to grow? During a recent interview with RealVision, the Chief Strategy Officer of CoinShares, Meltem Demirors, has affirmed that this might not be the win-win situation that most people believe.

According to her, big financial players are set to transform how Bitcoin is seen around the world. Bakkt, the futures exchange of the giant Intercontinental Exchange (ICE), is set to change how the market operates and the same can be said about other successful companies such as Grayscale, for instance, which is having a pretty good year.

This will impact the market. Demirors, however, was somewhat skeptical about the centralization that this could cause. If half of the supply was stored somewhere and people now had receipts to prove that they owned BTC, how different would it be from fiat currency? How decentralized? Would Bitcoin still be the same? This is how she put it:

“If we take 50% of the world’s Bitcoin and we put it in custody with a custodian that’s regulated… and we take these Bitcoins, and we put them in a vault somewhere… and then we issue Bitcoin depository receipts — pieces of paper that allow us to trade the underlying Bitcoins sitting in a vault somewhere — but we never actually exchange Bitcoin on the Bitcoin network, is that still Bitcoin?”

These are important questions that need to be addressed. Bakkt did not have a great launch and it started slowly, but it would be naive to believe that this kind of platform does not slowly change how the market operates.

With so many asset managers in the game (including CoinShares), won’t Bitcoin stray away from what it was created to be? At the moment, we can only speculate, but we’ll probably have the answer to the question in a few years from now.

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Author: James W

Newly Proclaimed, Satoshi Nakamoto, Claims to Break the Silence by Revealing Themselves

It seems like a new unknown individual has proclaimed themselves as the creator of Bitcoin [BTC], Satoshi Nakamoto. Interestingly, the official reveal is expected to be made on Sunday August 18 at 4:00 PM EDT, where they plan to expose the reason for not having moved their 980,000 Bitcoins.

The blockchain company that shared “My Reveal” date is Satoshi Nakamoto Renaissance Holdings. Apparently, spokesperson for the proclaimed, real Satoshi, Ivy McLemore, spoke with news outlets and shared that the “break in his silence” will be done in three parts, adding that

“the truth will be known.”

So what types of information will be disclosed in the reveal? In addition to the unmoved BTCs, the individual plans to share more about themselves including their real name, where they were born, educational and professional background and the “rebirth of BTC,” with the latter having to do with a project called ‘Tabula Rasa’ – a clean-slate version of BTC.

Obviously, consumers can expect to learn more about the bitcoin creation process, with emphasis placed on the “Chaldean numerology” and the contributions made by cyphers and encryption.

The three parts will be delivered one after the other, that is, once the first has been completed, the second and third have been scheduled for the same times but on August 19 and 20 respectively.

Given said shocking claims, people are bound to naturally doubt its likes. An example of this is Litecoin’s Charlie Lee, as reported by Daily Hodl, who argued that if the real Satoshi really planned for a reveal, then he would have done so by “sign[ing] a message with the genesis key,” adding that,

“anything short of that is most likely fraudulent.”

August 18 was chosen as a symbolic move, as this was the initial date back in 2008 when bitcoin.org was registered. The revelation would commence as a way to celebrate the eleventh anniversary of bitcoin.org.

So the question is… With Satoshi reveal himself (not likely) or is this some big PR stunt by a blockchain company?

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Author: Nirmala Velupillai

PIVX And 200 Other Proof of Stake Blockchains May Be Vulnerable, Lunar Digital Assets Affirms

It seems that PIVX, a popular private transactions crypto, may be vulnerable to attacks together with 200 other chains. According to a recent report made by Lunar Digital Assets, there is a vulnerability of the system that can be currently exploited. Every chain using PIVX or its variants is possible to be attacked this way.

Basically, the attacker could exploit this specific vulnerability in order to get impossibly high staking rewards using the proof of stake system of the network.

This is not the first that this vulnerability is exploited. As soon as the PIVX devs found out about it, they rushed to fix the issue. However, another developer, BitGreen, has noticed that the problem was being exploited once more. Someone has probably figured how to undo the progress made by the team and started to use the exploit.

As soon as the developers discovered it, they notified all related companies of the bug and now PIVX is working once more to solve it and stop the attacks.

People Are Accusing the PIVX Team

The situation got heated recently after some people started to claim that the PIVX team might be behind the attacks. According to critics, the team knew of the bug and did nothing about it or failed to fix it properly.

Some others criticized the team for not having a timely response for the problem and simply standing still while the problem was still out there. This led some critics to theorize whether people from the company were exploiting the bug for money and used this inside source in a malicious way.

At the moment, the PIVX team has not explained publicly why the problem was not fixed months ago.

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Author: Bitcoin Exchange Guide News Team

The Coordinated Crypto Crackdown Continues: NASAA Has 130 New Cases This Year

Bitcoin’s Use In Illegal Marketplaces Expected To Rise in 2019, Chainalysis Predicts $1 Billion Spent

Operation Cryptosweep is moving forward at full speed. It seems that the people at the Administrators Association (NASAA) are really taking seriously their latest operation to sweep unlawful cryptos out from the market.

According to the organization, 130 new crypto-related cases were opened and are being investigated in 2019. At the beginning of the year, the agency only had 35 cases open.

The Operation Cryptosweep was originally launched last year and the aim was to go after illegal ICOs in the U.S. and Canada.  NASAA representatives have recently confirmed that their latest investigations involve mostly securities fraud and scammers.

Michael Pieciak, the President of the NASAA, blames Facebook for the “environment” that is being created right now. According to him, the eminent launch of Libra is calling the attention of several bad types who are promoting illegal investments and scams across the country.

The president also affirms that people should be extremely careful when dealing with ICOs and cryptos, as there are many scammers out there. His advice was to always check with the authorities before any money is invested.

Crypto Companies Are Moving Away

As part of this effort to put down any kind of operation that is now fully regulated, most crypto companies are leaving the U.S. This is, obviously, both a good and bad thing. For instance, it means that the NASAA is doing a good job and weeding out the scammers. On the other hand, innovation is possibly stifled when there are so many companies leaving for overseas markets.

According to data presented by the NASAA, most companies are now choosing to move to Malta, the so-called Crypto Island. Other popular locations are Switzerland and Eastern Europe.

[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: Hank Klinger

Facebook’s Project Libra Gets Demolished By BitMEX’s Op-Ed By CEO Arthur Hayes

Facebooks-Project-Libra-Gets-Demolished-By-BitMEXs-Op-Ed-By-CEO-Arthur-Hayes
  • Facebook’s Libra seems to be an ETF rather than a digital currency
  • Arthur Hayes seems to be bullish about the effect this can have on Bitcoin

Facebook has recently released a new project called Libra that aims at helping users transact funds between borders, make payments and purchase things, including goods and services. However, there are many crypto enthusiasts that are not so excited about Facebook’s new project. One of them is Arthur Hayes, the CEO of the cryptocurrency exchange BitMex, that wrote a very hard op-ed regarding Facebook’s Libra project.

Arthur Hayes Demolishes Facebook’s Libra

The article that Mr. Hayes wrote is titled “Libra: Zuck Me Gently.” He starts by saying that Libra is not decentralized or censorship resistant, thus, it cannot be considered a stablecoin. This is a point that has been addressed in different occasions since the virtual currency will be controlled at all times in order to be compliant with regulations around the world.

In addition to it, Libra is going to be backed by different fiat currencies around the world, which would make of it a so-called stablecoin. Hayes explains that Libra is going to be destroying all stablecoins in the market.

Hayes went on explaining that the digital currency is going to be working in a similar way as central banks, which is going to be damaging the power that states and central authorities have over individuals around the world. And he believes that this is a good thing.

On the matter, Hayes wrote:

“The speed at which government officials rushed to admonish Libra tells you there is some potential positive value to human society embedded in the project.”

He considers that Libra is not a threat to financial privacy, which has been already gone in the past. The new digital currency and project is going to encourage people to understand that there is a new system that could work as an alternative. He also considers that this is positive for Bitcoin (BTC) because there are going to be several new users learning about the most popular digital asset that could eventually start using it.

Nevertheless, the article that Hayes wrote tries to show that Libra looks like a new investment tool rather than a cryptocurrency. The author of the article says that Libra works in a similar way as an exchange-traded fund (ETF), a recognized financial instrument that pays out interest from a basket of assets.

At the moment, the U.S. Securities and Exchange Commission (SEC) has not approved the first Bitcoin ETF in the market, and there were several proposals already presented in the market that none of them was approved.

In a recent article that was written by Dave Nadig, the managing director of ETF.com, explained that Libra is indeed an ETF rather than a digital currency. He explained that resellers will integrate with exchanges and other institutions that buy and sell cryptocurrencies to users, and will provide liquidity for users that want to convert from cash to Libra and back again.

The CEO of BitMEX said that the most significant disadvantage for Libra is that holders do not appear to be entitled to receive the investment income.

Currently, there are several countries around the world that are trying to understand how to better regulate Libra. The United Kingdom, the United States, France and Singapore are just some of the countries that are evaluating which is going to be the impact of the digital currency in their countries.

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Author: Carl T

Tether Tops Bitcoin’s Trading Volume Again as USDT Plays Its Part in ‘2019 is the Year of Stablecoins’ Motto

Tether-Tops-Bitcoins-Trading-Volume-Again-as-USDT-Plays-Its-Part-in-2019-is-the-Year-of-Stablecoins-Motto

The speculation that 2019 will be the year for all stablecoins seems to have begun already as Tether (USDT) recorded transaction volumes matching the ‘King Coin’ Bitcoin (BTC).

On the 28th of May 2019, the cryptosphere witnessed USDT’s 24hr transaction volume surpass that of Bitcoin (BTC) by about $1 billion, USDT recorded a volume of $27.2 billion, while BTC saw a volume of $26.7 billion.

Factors Of The Fall And Rise Of USDT

This hike in Tether trading volume came as a surprise to most as the stablecoin struggled out of the crypto winter. The main cause of this was the recent scandalous Bitfinex and Tether legal issues, which caused a drop in USDT user confidence and investor trust.

The present Tether surge is possibly linked to their announcement of the printing USDT worth about $300 million and also an improved effort to introduce new ICO listings as well as new trading pairs to attract potential new cryptocurrency enthusiasts.

‘whale trading’ could also be a factor to this Tether surge, which could also lead to a huge drop in the future.

Notably, a Twitter user, @lawmaster, a crypto researcher tweeted :

“Something really interesting is happening – there is now a 0.6% discount on Tether, which means that Tether is actually more expensive than USD on all the major exchanges. This started happening late at night yesterday and the discount has been sustained since”

USDT May Surpass BNB

Although Tether has not given any official statement about the stablecoins trading predictions, there is obviously a rise in the stablecoin market.

If the stablecoin keeps on the current rising path, there is a possibility of USDT taking the position of the Binance Coin (BNB) as the 7th largest digital currency on Coinmarketcap.

[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: Osahon Okodugha