Altcoins See Slight Uptick While Bitcoin Is Stuck Around $10,400

Sunday, Sept. 8 — The price of Bitcoin (BTC) is holding around the $10,400 price mark, while altcoins are showing slight gains across the board.

Market visualization. Source: Coin360

Market visualization. Source: Coin360

Bitcoin has shown little price movement in the last 24 hours, hitting an intraday high of $10,580 while stabilizing close to $10,400 for the last part of the day. At press time the world’s most popular cryptocurrency is trading at $10,381, down 1% on the day.

Bitcoin’s 24-hour price chart. Source: Coin360

Bitcoin’s 24-hour price chart. Source: Coin360

During the weekend, Bitcoin seems to have lost some of its traction with what some call a classic “buy the rumor, sell the news” reaction to Bakkt’s soft launch of its digital-asset custody warehouse.

In a “buy the rumor, sell the news” trade, investors buy an asset expecting a positive outcome from a certain event in the future. However, when the actual event takes place it often does not impact the price, which subsequently drops back to its original levels. When Bakkt tweeted about its soft launch opening, Bitcoin’s price fell from $10,900 to $10,200.

The number one altcoin Ether (ETH) is seeing some upward price movement and is currently trading at $180 per coin, up 0.43% on the day.

Ether 24-hour price chart. Source: Coin360

Ether 24-hour price chart. Source: Coin360

Ripple’s XRP token is showing similar upward price movement and is registering a slight gain of around 0.24% on the day. At press time, the world’s third-most popular coin is trading at $0.262.

XRP 24-hour price chart. Source: Coin360

XRP 24-hour price chart. Source: Coin360

A green day for the top-20 altcoins

The top-20 cryptocurrencies are showing mostly green candlesticks today, with Binance Coin (BNB), Monero (XMR), Ethereum Classic (ETC), and Bitcoin SV (BSV) being the only top-20 altcoins that are registering a slight loss of less than 1%.

The biggest top-20-gainer is EOS, up 4.64%, which is followed closely by and Tron (TRX) at 4.60%.

Market capitalization of all cryptocurrencies is currency $266.8 billion, down from $268.2 billion at the beginning of the day.

Market capitalization of all cryptocurrencies. Source: Coin360

Market capitalization of all cryptocurrencies. Source: Coin360

Keep track of top crypto markets in real time here

Source Cointelegraph

Crypto Exit Scams — How to Avoid Falling Victim

A couple of years back, the term “exit scam” became synonymous with the crypto industry. This was at a time when the market (at large) was replete with a number of cash grab ventures that looked great on paper but had little to no substantive value to back them up.

In its most basic sense, an exit scam can be thought of as a fraudulent scheme wherein the organizers of an initial coin offering (ICO) or a similar fundraising avenue disappear with their investors’ funds after acquiring a sizeable sum of money. 

In this regard, during November 2017 — a time when the crypto market was at its apex — the owners of an escrow-related crypto startup called Confido vanished overnight after acquiring a sizeable sum of $175,000 from their backers. As a result, the market capitalization of Confido’s associated crypto offering (under the ticker CFD) dropped from $6 million to a paltry $70,000 within the span of just seven days.

Related: What Are the Biggest Alleged Crypto Heists and How Much Was Stolen?

Other notable cases include Bitconnect and OneCoin, with the former probably being the most famous altcoin scam of all time. The aforementioned ploys each cost gullible investors in excess of $3 billion — with Bitconnect’s native token offering, BCC, even becoming a top-10 crypto in terms of total market capitalization. 

Hence, in order to gain a better understanding of exit scams and how best to steer clear of them, Cointelegraph reached out to Ben Samocha, the founder and CEO of CryptoJungle, a leading Israeli digital platform for how-to guides. According to Samocha:

“You can never know when it’s truly about to happen. For example with BitConnect if I had to bet, I would’ve said they should’ve exit-scammed way before the time they did.”

In regard to how investors can assess when an exit scam is about to go down, Samocha pointed out that it can be extremely useful for all stakeholders to actively pursue information related to the project (such as confirmations of partnerships, licenses, etc.) by following the company’s blockchain wallets as well as their media engagement levels. 

For example, if a project’s online media output suddenly starts to drop — or stops a month or two after its inception — this can be taken as a definitive sign that something shady is going on.

Obvious red flags to be wary of

The principle behind an exit scam is quite simple. First, the promoters launch or propose a new crypto platform that is based on a promising concept. Through an ICO, the organizers are then able to acquire a decent sum of money, following which, they proceed to make their getaway — thereby leaving their investors in the lurch. 

Along the way, there are usually a number of red flags that investors should keep an eye out for. Here are a few prominent examples:

Shoddy white paper

A lot of exit scams tend to feature white papers that are either under-researched or are of extremely poor quality. For example, they may feature full sections that have been directly copied from other established projects or come laden with a number of spelling mistakes and basic grammatical errors.

Unrealistic profit projections

Another surefire sign that a project is shady is if it makes bold, outlandish claims related to its financial returns. For example, upon its release, Bitconnect promised its core clientele a daily revenue stream of 1% — a figure that would eventually transform one’s initial $1,000 investment into a little over $50 million within a period of just three years. 

Related: Exit Scam in Wonderland: Bitconnect’s Tentacles From Texas to Gujarat

At the time, Ethereum co-founder Vitalik Buterin was highly critical of the project and called it a Ponzi scheme — and rightly so, because within a few months time (January 2018, to be exact), BitConnect closed down all of its lending and exchange services, which resulted in the project’s market cap falling from $2.7 billion in December 2017 to around the $17 million mark by the end of March 2018. On the subject, Samocha pointed out:

“Conduct proper due diligence, do not believe unsustainable false promises such as 6%+ profits guaranteed, look for the fundamentals and the proofs: they claim to have a partnership? Ask for transparency, approach the partner and verify it, etc. In addition, take extra care for MLM models that have several layers of profits (meaning, you gain commissions not from the people you recruit, but from their recruits as well).”

Team details

Back in 2017, a number of ICOs were able to raise substantial sums of money from investors, despite the organizers not providing any tangible details regarding the project’s key personnel. 

Not only that, a host of established ventures in the past have even resorted to buying likes, tweets and followers across various social media platforms to increase their online credibility. Thus, it is of utmost importance that people carry out their own research in regard to the promoters and backers of a particular ICO that they might be interested in. 

No working product

If a crypto project is backed only by a concept and not a working model, it is quite likely that the envisioned final product may never see the light of day. And while it is true that there are some technologies that have been developed from scratch, when it comes to crypto, any groundbreaking idea should ideally come backed by some sort of operational platform at the time of raising funds.

How to best avoid exit scams

It is quite clear by now that most crypto scams are usually centered around an ICO. However, it is worth pointing out that there have been more complex cases in the past — e.g., Bitsane, a scammy venture that was able to operate for a few years before finally being forced to shut down. 

To better understand some of the security-related aspects of exit scams, Cointelegraph reached out to Robin Singh, the founder of Koinly — a crypto portfolio tracker and tax calculation platform. Regarding security, he explained:

“As with all investments you really need to do your due diligence when investing in a crypto product or company. Do you understand the product? Can you corroborate the numbers showcased by the promoters from independent sources? Is there any evidence of demand for the product? Is the team behind the product ‘real’? Most scam companies use fake linkedin accounts to avoid accountability so it is always a good idea to validate their existence.”

Additionally, Singh also pointed out the following aspects that he believes can be useful for crypto investors in general:

  • Investors should ensure that they are being offered a working and validated product that already has some traction. 
  • Investors should avoid investing in an idea-only product with a multiyear roadmap. 
  • Investors should keep in mind that, though global investor sentiment usually decreases after an exit scam is revealed, people still seem eager to invest in Bitcoin – evidenced by the price reaching the $10K mark recently. 

In a similar vein, Nischal Shetty, CEO and founder of WazirX — India’s largest cryptocurrency exchange — pointed out that the most important thing to remember when investing in a nascent crypto venture is whether its founders have a good track record or not. 

Additionally, potential investors should look up a project’s founders on Twitter, LinkedIn (and possibly even Facebook) to verify whether they have been active in the crypto realm for at least a few years. Additionally, on the topic of what to do in case one falls prey to an exit scam, Shetty outlined to Cointelegraph:

“Raising a complaint in your country’s cyber crime division is a good first step. Cyber crime teams can try to trace the location of such scamsters. Most times, if the scamsters are smart then they’ll employ techniques that allow them to be completely anonymous or use a different identity. The best way to curb is to ensure there is enough public information about the founders. Founders with a good social standing will not pull an exit scam and even if they do, it’ll be easy for law enforcement to catch them.”

It is all down to common sense?

It should be made abundantly clear that the safety of financial assets is entirely the responsibility of the individual. Making money via crypto trading or investments requires a lot of due diligence by the investor and it thus is always desirable that investors do their homework before going in big on a particular crypto project.

Source Cointelegraph

Market Mostly Trades Sideways as Bitcoin Price Holds Above $10,300

Monday, Sept. 9 — Cryptocurrency markets are largely trading sideways with most changes among the top-20 coins not exceeding 1% on the day.

Market visualization. Source: Coin360

Bitcoin (BTC) has been trading sideways for the better part of the day and seems to be holding above the $10,300 price mark. The coin saw a low of $10,080 earlier before moving to an intraday high of around $10,400, and is currently trading at $10,354, showing a small loss of 0.41% on the day.

In a crypto price analysis for Cointelegraph earlier today, Rakesh Upadhyay stated that the Bitcoin price could stay relatively stable as traders are setting themselves up ahead of the launch of Bakkt’s long-anticipated Bitcoin futures platform. 

Bitcoin’s 24-hour price chart. Source: Coin360

As Cointelegraph reported on Sept. 9, United States Securities and Exchange Commission Chairman Jay Clayton said that, although significant steps have been taken to address regulatory concerns vis-a-vis a Bitcoin exchange-traded fund, there is still work to be done.

The number one altcoin, Ether (ETH), is not doing any better than Bitcoin today as it is showing little to no price movement. The coin is currently trading at $182.52, up 0.83% on the day.

Ether 24-hour price chart. Source: Coin360

Ripple’s XRP token has continued to trade within a range this week and is currently showing a loss of around 0.82% on the day. At press time, the world’s third-most popular coin is trading at $0.259, which is around the exact same price as seven days ago.

XRP 7-day price chart. Source: Coin360

Other coins in the top-20 fared slightly worse, with Bitcoin SV (BSV) dropping 4.5% and Tezos (XTZ) dropping 5.52%, while EOS (EOS) is the only top-20 coin that is generating gains above 5%.

The total market capitalization of the cryptocurrency market sits at $266.4 billion at press time, with Bitcoin’s dominance of total market cap dropping below 70% to 69.8% of the total.

Keep track of top crypto markets in real time here

Source Cointelegraph

Blockchain Startup CasperLabs Raises $14.5M for Scaling Development

Blockchain company CasperLabs has raised $14.5 million in a Series A funding round led by Terren Piezer, an international financier and chairman of Los Angeles-based investment company Acuitas Group Holdings.

Investment to develop products and hire engineers

In a news release shared with Cointelegraph on Sept. 10, the blockchain protocol research and development company CasperLabs announced the results of the Series A funding round led by Piezer, also known as the “Zelig of Wall Street,” through his personal holding company.

Other major investors include Arrington XRP Capital, Consensus Capital, Axiom Holdings Group, Digital Strategies, MW Partners, Blockchange Ventures, Hashkey Capital and Distributed Global. 

CasperLabs, a company that is trying to develop the so-called correct-by-construction Casper Proof-of-Stake Ethereum (ETH) consensus algorithm, will allocate the newly invested funds into further development of its products and hiring of new engineers.

Mrinal Manohar, CEO of ADAPtive Holdings Ltd., parent company of CasperLabs, said that they are humbled by the enthusiasm and financial support for its Series A from leading traditional and blockchain investors to build enterprise-grade, decentralized blockchain infrastructure. He added: 

“We look forward to delivering several interesting technical updates in the coming months and welcome any and all feedback via our open source code repository on Github.”

Piezer said that he has been waiting for a company that can build the strength and decentralized aspects of a public chain with the speed, security, and scalability of a next-gen platform, adding:

“Scalability of a product and company is the leading driver of value creation. Consistently, the most proficiently scalable company becomes the industry leader.”

CasperLabs hires Ethereum researcher Vlad Zamfir

Cointelegraph reported in February that CasperLabs has appointed Ethereum Foundation researcher Vlad Zamfir as lead consensus protocol architect. Zamfir infamously stated in March 2017 that Ethereum is not safe, scalable and is an immature technology, while urging the community to not rely on it for critical applications when it’s avoidable.

Source Cointelegraph

Market Continues to Trade Sideways as Bitcoin Price Dips Below $10,300

Tuesday, Sept. 10 — Cryptocurrency markets continue to largely trade sideways with Huobi (HT) token being the only top-20 coin that is showing above-average gains.

Market visualization

Market visualization. Source: Coin360

Bitcoin (BTC) saw an intraday high of around $10,390, while slowly trading downwards up to its current trading price of $10,204 according to data from Coin360. The world’s No.1 crypto is showing a small loss of 0.5% on the day.

In a Twitter debate with Primitive Fund co-founder Dovey Wan on Sept. 9, Blockstream CEO Adam Back had said altcoins’ previous supremacy was a temporary feature of the cryptocurrency space and that Bitcoin is reverting to its historical 90%+ market dominance at altcoins’ expense.

Bitcoin’s 24-hour price chart

Bitcoin’s 24-hour price chart. Source: Coin360

Many have voiced similar sentiments on Bitcoin’s market dominance. In recent weeks, veteran trader Peter Brandt and RT host Max Keiser have shared their criticism of altcoins over and over again, expressing their believe alt markets have boomed and burst.

The number one altcoin, Ether (ETH), is showing similar trading trends today and is showing little to no price movement. The coin is currently trading at $180.6, down 0.6% on the day.

Ether 24-hour price chart

Ether 24-hour price chart. Source: Coin360

Ripple’s XRP token continues to trade completely flatly, showing a loss of a negligible 0.05% on the day. At press time, the world’s third-most popular coin is trading at $0.259 — the same price as 24 hours ago.

XRP 7-day price chart

XRP 7-day price chart. Source: Coin360

While most top-20 coins are trading sideways within a 1% range, Huobi token stands out with above-average gains of more than 4%, followed closely by Litecoin (LTC), up 3.2%.

Other coins in the top-20 which fared slightly worse are Bitcoin SV (BSV) dropping almost 3% and Dash dropping just over 2%, while EOS (EOS) is taking the largest beating, at 4% down.

The total market capitalization of the cryptocurrency market sits at $263.3 billion at press time, with Bitcoin’s dominance dropping slightly to 69.7% of the total.

Keep track of top crypto markets in real time here

Source Cointelegraph

Ethereum Dev Firm ConsenSys Now a Premier Member of Hyperledger

Ethereum-focused development firm ConsenSys becomes a premier member of blockchain development project Hyperledger, according to a press release shared with Cointelegraph.

Software already submitted

Per the release, ConsenSys also submitted its Pantheon Java-based Ethereum client to Hyperledger as the project ​Hyperledger Besu. Besu, which is reportedly the first public chain compatible blockchain submission to Hyperledger, is the fifteenth Hyperledger project. 

Hyperledger executive director Brian Behlendorf commented on the submission, saying:

“By submitting the code for Hyperledger Besu right out of the gate, ConsenSys is showing its support for our mission to build a broad coalition for advancing enterprise blockchain.”

Favoring open and interoperable blockchains

As a Hyperledger member, ConsenSys plans to explore interoperability across blockchains and help drive standards to support enterprise-grade blockchain environments. Behlendorf praised the advantages of a big collaborative community in the space. He explained: 

“As a new premier member, ConsenSys is now an active part of the Hyperledger community and the open-source, open governance approach to blockchain. […] The more technologies and members we have working together, the stronger the foundation we can collectively build for blockchain-based solutions.”

Furthermore, ConsenSys founder and Ethereum co-founder Joseph Lubin will join the governing board of Hyperledger, which now counts 22 members. 

As Cointelegraph reported in July, technology behemoth and semiconductors manufacturer Intel has co-sponsored a new blockchain programming project by major blockchain tech firm Hyperledger.

Source Cointelegraph

Warner Music to Build Token on New Blockchain by CryptoKitties Creator

Global media giant Warner Music Group will be creating digital assets using new public blockchain backed by CryptoKitties creator.

Warner Music’s to create assets on Flow

According to a Forbes report on Sept. 12, Warner Music has joined an $11.2 million investment in CryptoKitties creator Dapper Labs in order to collaborate on the deployment of the company’s new blockchain network called Flow as well as building tokens on top of it.

While Warner has reportedly invested less than $1 million in the form of a convertible security, other contributors included major industry investors such as Andreessen Horowitz, Digital Currency Group, Union Square Ventures and Venrock, the report notes.

Flow’s potential in the music industry

Jeff Bronikowski, senior vice president of business development at Warner Music, reportedly stated that Dapper Labs’ CryptoKitties technology could be used to create unique and tradable merchandise featuring its superstar talent in case if the transaction volume issues can be solved. 

According to the report, Flow is claimed to be capable of processing transaction volumes many times more than Ethereum blockchain, on which the famous CryptoKitties game is based.

Bronikowski reportedly hinted that the new investment intends to unlock a new method for sharing Warner Music’s content as well as a new type of engagement with artists. He said:

“The main goal is to create new avenues where the fans of our artists can explore their fandom and engage with the artists in new and different ways that they haven’t done before.”

According to Forbes, the first round of fundraising will be spent exclusively on finishing the Flow blockchain and building apps on it, while the accredited investors will receive a cut of company stock. 

The investors will also have a bonus option to convert the securities into tokens that can be spent on the network as soon as the firm gets regulatory approval from the United States Securities and Exchange Commission.

Additionally, Warner Music is reportedly looking into how cryptocurrency could be used to enable a new method for tipping artists on the network and testing two different blockchain platforms for directly connecting musicians with their fans without the need of intermediary distributors.

On Sept. 4, Korean pop music giant SM Entertainment revealed plans to create its own crypto and blockchain in partnership with tech organization CTIA Labs.

Source Cointelegraph

Crypto Brokerage Tagomi Makes Shorting Bitcoin and Ether Easier

New York-based cryptocurrency brokerage and trading platform Tagomi allows its users to lend or borrow Bitcoin (BTC) and Ether (ETH) to facilitate long or short trades.

Bloomberg Quint reported on Sept. 12 that the exchange aims to make shorting easier by offering immediate access to multiple counterparties from a single platform.

The state of shoring in crypto

Per the report, to short crypto assets, traders currently have to “call a host of brokers and trading desks to find the best rates for borrowing and risk the market moving against them during the time it takes to put on a trade.” Tagomi’s chief operating officer Kevin Johnson commented on the difficulty of applying such strategies to crypto:

“In other asset classes this would be done with one click, but in crypto it’s very long and tedious to try and put a short on. ”

Shorting: part of the puzzle

Dennis Chou, director of trading at Pantera Capital, noted that the ability to short is important to traders. He noted that it is not only useful to those wanting to bet against crypto, but also to those looking to apply quantitative strategies, relative-value trades and hedging. He commented:

“The crypto space is volatile, so if you can’t short, you’re missing part of the puzzle.”

As Cointelegraph reported at the end of March, the New York State Department of Financial Services has granted a BitLicense to Tagomi.

Source Cointelegraph