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Dancing With the Devil: ‘Cashing Out’ Cryptos Into Fiat Not So Easy

December 28, 2017 |

Dancing With the Devil: 'Cashing Out' Cryptos Into Fiat Not So Easy

Bitcoin and other cryptocurrency assets are precious and some of them have grown over 1300 percent in value this year. Although, with the price on exchanges being higher than ever before its now a bit more difficult for those who want to ‘cash out’ or make significantly large purchases without being watched by the prying eyes of tax collectors and governments.

Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales

Buying That Lambo May Not Be So Easy

Lately across social media and forums, you can find posts written by individuals who have ‘cashed out.’ Maybe they bought a luxury car like a Lambo, paid off their mortgage, or cleared their student loans with cryptocurrency gains. However some of conversations online concerning how to cash out detail how difficult it is without being watched, or being stopped by the third party payment processors.

Dancing With the Devil: 'Cashing Out' Cryptos Into Fiat Not So Easy
With cryptos so valuable, many people think that they can casually buy a Lambo these days.

For instance exchanges like Coinbase, Bitstamp, Kraken, and many others require a good amount of verification to revert bitcoins to fiat or vice versa. And just because you are approved it doesn’t mean you’ll be able to throw US$ 100,000 worth of BTC down on an exchange and expect to have the funds sent to your bank account without issue. The exchange may cancel the process even after the sale has been made. Furthermore, on the bank side, your financial institution may also stop you from cashing out large sums or freeze your account.

Typically in the U.S. and many other regions, anything between $ 5,000-10,000 deposits and withdrawals are monitored for money laundering and tax evasion. In essence, if you want to exit back to fiat using an online exchange to process $ 5-10K, you have to trust all the third parties will execute the deal as promised. Also if it’s a regulated, exchange trades in amounts mentioned earlier are likely monitored.

Two-Way Bitcoin ATMs and Taking It to the Streets With Localbitcoins

Then maybe you say to yourself, “well I could sell my funds to a two-way BTM.” Well, most of the two-way bitcoin automated teller machines only allow users to sell $ 200-500 per day. At that rate to cash out $ 10,000 worth of bitcoin, you would have to visit the BTM for twenty days straight and pay a 7-10 percent fee as well. Another talking point that always enters the conversation is those who believe it’s simple to use Localbitcoins to cash their BTC into fiat. In some areas of the world it’s easy to do this, but in countries like the U.S., they are arresting large Localbitcoins sellers for illegal money transmission and other charges.

Dancing With the Devil: 'Cashing Out' Cryptos Into Fiat Not So Easy
Selling bitcoin on the streets also has risks.

Further, it takes quite a bit of time and well-executed trades to become a trusted trader on the peer-to-peer platform. Much like eBay, it’s not easy to build robust reputation immediately. Lastly, if you choose to try and get direct cash for your BTC from Localbitcoins traders in person, you have to be completely comfortable with the deal and your surroundings. There have been many instances of street traders being robbed or scammed during a trade.

‘Someday Neo, You Won’t Have To’

It’s true many cryptocurrency enthusiasts have been able to cash out using the methods mentioned above, but there are always risks involved with converting back to fiat. Some people don’t care as they’ve done nothing ‘wrong’ and have no problem shelling out 33 percent for capital gains or other taxes involved. Also, there are many different ways people have found to be a reliable way to sell large amounts of cryptocurrencies as well. This includes people who know someone at an exchange, someone who is friendly with a miner or big over-the-counter (OTC) dealers.

Dancing With the Devil: 'Cashing Out' Cryptos Into Fiat Not So Easy
Some people believe they won’t have to ‘cash out’ into fiat.

Lastly, there are cryptocurrency advocates who just don’t care about the difficulties presented when going back to fiat. These people have the firm belief that digital assets like bitcoin, ethereum, and a few anonymous coins just might be the world’s dominating currencies. The “someday I won’t have to” exit back to fiat people exist in significant number and believe the renminbi, dollar, euro, and yen are doomed.

Do you think it’s difficult to exit back into fiat? Do you think you will never go back to nation state-issued currencies? Let us know about your experiences selling large sums of cryptos and exit strategies in the comments below.


Images via Shutterstock, the Matrix, and Pixabay. 


Make your voice heard at vote.Bitcoin.com. Voting requires proof of bitcoin holdings via cryptographic signature. Signed votes cannot be forged, and are fully auditable by all users.

The post Dancing With the Devil: ‘Cashing Out’ Cryptos Into Fiat Not So Easy appeared first on Bitcoin News.

Bitcoin News

PR: mBit Casino Adds Litecoin, Bitcoin Cash and Dogecoin

December 28, 2017 |

mBit Casino Adds Litecoin, Bitcoin Cash and Dogecoin

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

It has just been announced that mBit Casino will now support 3 new cryptocurrencies, making them one of the first major Bitcoin casinos to support Dogecoin as well as 3 of the 5 largest cryptocurrencies based on market capitalization. Starting today, players can gamble online at [mBitCasino.com] using Bitcoin, Bitcoin Cash, Litecoin and Dogecoin.

Before mBit Casino added support for these new currencies, gamblers were limited to playing online with Bitcoin. As cryptocurrencies and altcoins continue to gain popularity, more and more Bitcoin owners are diversifying their holdings with digital currencies like Litecoin, Dogecoin and Bitcoin Cash.

Recent Issues with Bitcoin

All of the recent problems associated with the scaling of Bitcoin (such as increasing TX fees and slower confirmation times) have made it more difficult for crypto enthusiasts to gamble online, as the options for casinos who support cryptocurrencies like LTC, DOGE and BCH is almost non-existent.

A representative of mBit Casino recently commented on their move to support these additional cryptocurrencies:

“This transition has been an important one. We noticed exceptional Bitcoin transaction fees in recent weeks as the blockchain got clogged with unconfirmed transactions. By adding support for cryptocurrencies like LTC, DOGE and BCH, our players will be able to spend much less on transaction fees. We also hope it will lead to faster confirmation times and a more fluent gaming experience.” ~ Philip Aaker, CEO of mBit Casino.

In the beginning of 2018 mBit will be adding even more currencies to their platform beyond BTC, LTC, BCH and DOGE. The most popular cryptocurrency will include Ethereum, which is scheduled to be integrated in mid-January.

Gambling with Cryptocurrencies Made Easy

If you owned Litecoin, Dogecoin or Bitcoin Cash before today and wanted to gamble online, you would often have to jump through hoops to do so. The process involved selling your cryptocurrency for Bitcoin on a third party exchange site, waiting for the trade to clear and sending the BTC to your casino wallet; a long and complicated process.

That process has just been simplified via mBit Casino, because gamblers can now play slots, table games, video poker and other popular games using their favorite digital currencies without having to convert them back and forth to BTC through a third party.

Playing at mBit Casino

This recent move means that mBit Casino’s existing Bitcoin games – including popular slots and table games from a wide range of well-known online gaming providers – are now available to players in each of these new currencies. If you want to use cryptocurrencies to gamble online, you can begin your journey at mBit Casino by signing up for an account and funding it with any of their supported coins.

Once the funds have been sent to your wallet at mBit Casino, your account will be credited as soon as the transaction appears on the blockchain of that currency. After that, you’ll be able to start playing real-money cryptocurrency games instantly!

Cryptocurrency Bonuses at mBit Casino

If you don’t already have an account, make sure you sign up now so you can play with a 110% bonus on top of your first deposit using Bitcoin, Bitcoin Cash, Litecoin or Dogecoin! The welcome bonus is automatic, and is credited to your account virtually instantly upon depositing.

Contact Email Address
steven@mbitcasino.com
Supporting Link
https://www.mbitcasino.com/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: mBit Casino Adds Litecoin, Bitcoin Cash and Dogecoin appeared first on Bitcoin News.

Bitcoin News

Ross Ulbricht’s Fate in the Hands of the US Supreme Court

December 28, 2017 |

Ross Ulbricht’s Fate in the Hands of the US Supreme Court

Ross Ulbricht formally submitted a writ of certiorari to the Supreme Court of the United States (SCOTUS), seeking a hearing for the overturn of a decision upheld this year by the Second Circuit Court of Appeals. Mr. Ulbricht’s double-life sentence without the possibility of parole is at stake.

Also read: Bundesbank Board Member: No Plans to Issue State-Backed Cryptocurrency

Ross Ulbricht’s Fate in the Hands of the US Supreme Court

Ross Ulbricht Files Supreme Court Appeal

“Ross William Ulbricht respectfully petitions for a writ of certiorari to review the judgment of the United States Court of Appeals for the Second Circuit in this case,” read the terse beginnings of a landmark plea to literally the last resort for Mr. Ulbricht.

Writ of certiorari orders the lower court, which upheld Mr. Ulbricht’s conviction and sentence, to deliver its records so that the Supreme Court may review them and decide if further examination is necessary. The SCOTUS is a nine member body which acts as the final arbiter in legal matters. Currently the Court has five members considered more conservative, while four are thought to be on the permissive side. Neil Gorsuch, recently appointed by President Trump, is said to be not bad on 4th Amendment issues, one of the grounds on which Mr. Ulbricht’s appeal is based. Ross Ulbricht’s Fate in the Hands of the US Supreme Court

There’s still a while to go before anything concrete can be known. The SCOTUS is under no obligation to pick-up the petition. In fact, of the 7,000 or so they receive per year, they’ll hear at most 150, a niggardly .02 percent. Very often the Circuit Courts are the final word in the great majority of cases. And of the appellate courts, the 2nd Circuit has a comparatively low reversal rate by the SCOTUS, so even if the case is ultimately heard that is no guarantee Mr. Ulbricht will see relief.

The generally agreed test for the SCOTUS to hear a writ involve cases of national significance, to establish a precedence, or put to rest existing contradictions in decisions. Four of the justices must vote to accept a case. Justices’ clerks are in charge of first reviewing the writ, and it is they who write a summary and recommend hearing. Justices then take their recommendations to a conference for a final decision as to whether full hearing is warranted.

Ross Ulbricht’s Fate in the Hands of the US Supreme Court

Two Questions

Mr. Ulbricht’s appeal focuses on two questions, according to the writ: “1. Whether the warrantless seizure of an individual’s Internet traffic information without probable cause violates the Fourth Amendment. 2. Whether the Sixth Amendment permits judges to find the facts necessary to support an otherwise unreasonable sentence.”

The United States Constitution is odd in the sense the bulk of the document describes what government does, its various functions, and then come amendments to those functions. The first ten are known as the Bill of Rights, and they specifically forbid government from certain transgressions, no matter the excuse. Ross Ulbricht’s Fate in the Hands of the US Supreme Court

The relevant portion of the Fourth Amendment under consideration reads, “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause[.]” The relevant Sixth Amendment portion reads, “In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury[.]”

According to a memorandum obtained by Brian Doherty of Reason, “This case presents two important questions of constitutional law with broader significance for the rights of criminal defendants generally,” writes lead attorney Kannon K. Shanmugam. “First, the Second Circuit affirmed the government’s warrantless collection of Mr. Ulbricht’s Internet traffic information by relying on the third-party doctrine, which the Court is reviewing in a different context this Term in Carpenter v. United States….This case would afford the Court an ideal opportunity to address how the doctrine applies to Internet traffic information,” he claims.

Ross Ulbricht’s Fate in the Hands of the US Supreme Court

Law for the Digital Age is Badly Needed

Mr. Doherty explains, “Shanmugam, a former law clerk to the late Justice Antonin Scalia, has argued 21 previous cases before the Supreme Court, has had at least five wins there, and has a good record of a 36 percent success rate in having cert petitions granted by the Court from 2012-2015 (and a 38 percent such success rate from 2013-2017),” which bodes well for Mr. Ulbricht.

Warrantless searches are at play, potentially, in the case because information used against Mr. Ulbricht was gathered under the “third party doctrine.” This allowed law enforcement to effectively search his IP address and personal laptop, which are presently thought to be available publicly over the internet through a modem or telecommunications company. The doctrine stems from before a time when internet service and laptops and phones were a person’s everyday lifeblood, and as such is in great need of updating. Is this information citizens are knowingly making public? Or, is such information assumed to be private? It’s all the difference in the world.

Ross Ulbricht’s Fate in the Hands of the US Supreme Court
Kannon K. Shanmugam

Also of grave concern is Mr. Ulbricht’s sentencing itself. “Ulbricht’s Sentencing Guidelines range would have resulted in a recommended sentence of, at most, 30 years in prison,” Mr. Shanmugam insists, but the judge took into account, beyond a jury, accusations never proven, including murder, to assess punishment. Mr. Doherty writes, “The Second Circuit in his initial appeal ‘reluctantly affirmed, concluding that the alleged murders for hire separated the case from an ordinary drug crime.’”

For the broader bitcoin community, Ross Ulbricht is someone many feel a debt is owed. Silk Road, according to many, provided a safer environment for buyers and sellers of products disliked by governments. The earliest use cases of bitcoin, cryptocurrency, were proven viable and, it’s not too far to claim, valuable due to such fearless experimentation. A great many enthusiasts view Mr. Ulbricht as someone who the government picked-on to send a horrible message.  

What do think of Ross Ulbricht’s chances? Let us know in the comments section below.


Images courtesy of Pixabay, FreeRoss.org.


Keep track of the bitcoin exchange rate in real-time.

The post Ross Ulbricht’s Fate in the Hands of the US Supreme Court appeared first on Bitcoin News.

Bitcoin News

South Korea Outlines New Attempts to Dampen Crypto Markets

December 28, 2017 |

South Korea Outlines New Attempts to Dampen Crypto Markets

The government of South Korea held a meeting on Thursday to discuss measures to deal with the growing trend of cryptocurrency speculation. The regulators clarified the clampdown on virtual accounts as well as other measures to end anonymity. In addition, the Ministry of Justice suggested an even more extreme measure.

Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales

Clampdown on Virtual Accounts

Much of the discussions on Thursday centered on the subject of virtual accounts that are issued by banks for cryptocurrency exchanges. The government announced, according to Yonhap:

It [the government] is banning the use of anonymous virtual accounts in cryptocurrency transactions as part of efforts to curb virtual currency speculation.

South Korea Outlines New Attempts to Dampen Crypto MarketsThis follows the regulators’ previous announcement on the virtual account clampdown that is part of the “emergency measures” on cryptocurrency regulation, which news.Bitcoin.com reported earlier this month. Even before the emergency measures were announced, banks anticipated the ban and already stopped issuing new virtual accounts, news.Bitcoin.com also reported. This would effectively put some exchanges out of business.

Ending Anonymity

Hong Nam-ki, the minister of the Office for Government Policy Coordination, explained at the Thursday meeting, as reported by Yonhap:

Under the measure, only real-name bank accounts and matching accounts at virtual currency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned…The Financial Intelligence Unit and the Financial Supervisory Service will carry out joint inspections to make sure that such real-name transactions will take root at an early date.

South Korea Outlines New Attempts to Dampen Crypto MarketsThis announcement followed the government’s efforts to make banks identify virtual account owners. When the regulators released their emergency measures, they asked banks to confirm the identity of virtual account owners, as new.Bitcoin.com previously reported. However, banks said at the time that they could not comply, citing that they “only issue virtual accounts to the exchanges and do not know whom the virtual accounts are issued.”

To comply with the regulation in the future, banks are now building a system to identify virtual account owners in collaboration with the Korean Blockchain Association. The association has been working on self-regulation with 40 companies, including 14 crypto exchanges.

Ministry of Justice’s New Attempt

Despite repeated warnings by the government of the risks of cryptocurrency trading, Hong pointed out that:

Speculation has shown little signs of abating, with values of many cryptocurrencies excessively higher at home than abroad.

South Korea Outlines New Attempts to Dampen Crypto MarketsThe Ministry of Justice, which heads the task force to spearhead regulations, has been a proponent of extreme measures. Earlier this month, the ministry suggested a blanket ban on cryptocurrencies in South Korea. However, this proposal was not adopted in the emergency measures.

During the Thursday meeting, Hong mentioned that the Justice ministry suggested “shutting down cryptocurrency exchanges.” However, the meeting’s minutes do not indicate whether other ministries support this idea.

Furthermore, Hong reiterated that the government will strengthen requirements of local exchanges to prevent money-laundering and toughen punishments for crypto-related crimes. The government will also put restrictions on cryptocurrency advertisements.

What do you think of the Korean government’s new attempts to discourage crypto trading? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post South Korea Outlines New Attempts to Dampen Crypto Markets appeared first on Bitcoin News.

Bitcoin News

PR: EtherZero — a Revolutionary Ethereum Hard Fork, Forking on 19th Jan 2018

December 28, 2017 |

EtherZero - Ethereum Hard Fork

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Although there are many bitcoin fork outside, there are only few Ethereum fork on the way. The two already announced Ethereum fork had some trouble with its fork height and changes several time, which lead to a result that many trade platform’ trust has been lost.

However, this time, a new Ethereum hard fork, EtherZero, wish to change the current situation , it may become the most successful Ethereum hard fork that the history has ever had.

So now let’s find out together what the EtherZero really is and what on earth outstanding charateristics they have:

Important things comes first:

Fork height: 4936270 block
Time: Jan 19th 2018 GMT 19:00-21:00
Allocation: Total supply is about 116 million ETZ
Each ETH distributes 1 ETZ
Reserve 20 million ETZ for subsequent development
Newly increased: about 6 million ETZ per year (about 5% inflation and declining year by year)

About the team:

Currently EtherZero team is made up by 20 people, these people are from different country, also we are cooperating with many famous DAPP development workshops from India and East Europe, most of our team member are professional DAPP developers, although we are not famous for now, the techniques are no questioning here.

Innovation point:

You may be curious about the masternode sytem, here is a more specific explanation of it:

Our idea is to improve and stabilize the market value of ETZ, and we are trying to get ETZ’s market value at 10% of the Ethereum in the short term. The masternode can benefit more cash users. We expect the initial access node to be 10 thousand ETZ, 45% of the rewards to the miners, 45% to the masternodes, and 10% to the self-governing communities.

If EtherZero made its market value up to 10% of the Ethereum, the unit price would reach 70 US dollars theoretically. We welcome those who are interested to join EtherZero node system.

Developer friendly:

Based on the DAPP in the Ethereum, the deployment of the ETZ chain can be completed after a few changes. The ETZ team will give a detailed technical change plan in the future.

Road map:

We are also sincerely inviting those who has resource superiority to join our team , or our EtherZero foundation. Let’s work together to make a career. For the outstanding contributors, we will give ETZ gifts generously later.

Besides, EtherZero team also warmly welcome those big merchants and board game companys who wish to cooperate. Don’t miss the chance to see how great EtherZero are!

Contact us at:

Facebook: https://www.facebook.com/EtherZero-554760518194015/
Twitter: https://twitter.com/etherzero_org
Github: https://github.com/etherzero
Telegram: https://t.me/joinchat/HUFB8hDQEH127gOPou8JBQ
Bitcointalk: https://bitcointalk.org/index.php?topic=2607526.0

Contact Email Address
support@etherzero.org
Supporting Link
http://etherzero.org/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: EtherZero — a Revolutionary Ethereum Hard Fork, Forking on 19th Jan 2018 appeared first on Bitcoin News.

Bitcoin News

EU Central Banker: “Stop Calling the Bitcoin a Coin”

December 28, 2017 |

EU Central Banker: “Stop Calling the Bitcoin a Coin”

European Union central bankers are becoming increasingly vocal on the subject of the world’s most popular cryptocurrency, bitcoin. Its precipitous price increase this year seems to coincide with wide-ranging statements, including the digital asset’s threat or lack thereof. Recently, the governor of the National Bank of Belgium (NBB) explained that more people should be warned about the decentralized currency and how it isn’t a currency at all.

Also read: Bundesbank Board Member: No Plans to Issue State-Backed Cryptocurrency

Jan is Not a Bitcoin Fan

“We have to embrace the innovations and the efficiency gains that this can generate for the payment system,” NBB governor Jan Smets explained when asked about the possibility of a state-backed crypto for the Union. His answer came after a barrage of disparaging comments regarding cryptocurrencies’ market leader.

The NBB is Belgium’s central bank and part of the of the Eurosystem which comprise members of the European Central Bank. Mr. Smets, 66, has been its governor since 2015 after serving under two prime ministers as a cabinet chief. In addition to his NBB duties he participates in a dozen boards, academic and financial.  

Quoted in De Vrije Markt, Mr. Smets explains, “We need to warn people about the bitcoin, and people who invest in bitcoins can lose a lot.” With its being woven into new financial products, the digital currency could potentially be catastrophic for wider economies due to its volatile nature.  “Even if the risks are small at the moment,” Mr. Smets acknowledges.

EU Central Banker: “Stop Calling the Bitcoin a Coin”
Jan Smets of the EBB

Not a Coin

The last time a memorable statement was made by NBB regarding bitcoin came back in Summer of 2014 during a joint statement with its Belgian Financial Services and Markets Authority. In it, they warned about its not being legal tender, hacking, fluctuations and the usual litany of risks bitcoiners are all too familiar with. Prior to that statement, Belgium was thought to be at the forefront of crypto in Europe, at least in some circles.

Three and a half years laster, Mr. Smets worries about the purchasing power of the decentralized currency, pointing to its lack of stable backing such as that which the euro has with its tether to the European Central Bank. Bitcoin’s price moving from 1,000 USD at the beginning of 2017 to around 15,000 USD only buttresses his argument, he believes.

Finally, the EU central banker urges: “Let’s stop calling the bitcoin a coin. Unlike the euro, the bitcoin is not guaranteed by a central bank or government as a means of payment, so the bitcoin is not a currency,” he explained. 

What do think about the EBB governor’s comments? Let us know in the comments section below.


Images courtesy of Pixabay.


Keep track of the bitcoin exchange rate in real-time.

The post EU Central Banker: “Stop Calling the Bitcoin a Coin” appeared first on Bitcoin News.

Bitcoin News

Huobi CEO Announces 100 Million RMB to Compensate WAX Investors

December 28, 2017 |

Huobi CEO Announces 100 Million RMB to Compensate WAX Investors

Huobi CEO Li Lin said on Tuesday that he will use 100 million CNY to compensate users for their investment losses in the WAX project. 

Also Read: Several Bitcoin Exchanges Are Closing Their Doors to New Traders

Huobi CEO Announces 100 Million RMB to Compensate WAX Investors

A Pump-and-Dump Incident

Huobi.pro launched an ICO token, WAX, on December 20. The opening price of the token was about 10,000 CNY (0.09 BTC) and was pumped up to over 40,000 CNY (0.36 BTC) on the very first day, gaining 6,000% more than its ICO price (6.6 CNY). Users at Huobi felt excited to buy more WAX, believing that the token could be the star of 2017 in the crypto world. But their investment turned out to be a disaster, as the price fell in the following five days to as low as 2 CNY per WAX.Huobi CEO Announces 100 Million RMB to Compensate WAX Investors

When the price dumped, and enthusiasm declined, investors began to do their homework. They noticed that Huobi.pro deleted the project overview and whitepaper of WAX on its website by the 22th. Worse still, when they visited the WAX blog, they realized that Huobi.pro under-reported he total amount of WAX in circulation. On its website, Huobi said WAX was capped at 180 million in total, but investors claim to have discovered a ten-fold inflationary 1.8 billion total in WAX.

News.bitcoin.com entered a Huobi.pro Telegram group and found that some investors even bought WAX at the highest price of 0.36BTC. Group members subject to losses formed an alliance to collect evidence that Huobi.pro deliberately manipulated the token price. So far, over 100 investors went public with their real names and have reported Huobi.pro’s potential misconduct to local police.

Huobi’s Two Announcements

On their website, Huobi announced on 24th:

“The WAX project suddenly increased their token size without informing users and the platform, we will do our best to assure they compensate our users.”

The announcement was deleted right away. Later that night at 9:00pm, Huobi.pro released another announcement, saying WAX is a promising project that met all conditions to be listed at Huobi.pro. “The Wax team made the expansion split, and the original total amounts split to ten-fold, about 1.85 billion. In the Medium post, the Wax project announced that the change was for smaller deals which will support more applications in the future. This change was from WAX’s blog, but the WAX team had not informed Huobi Pro through a formal business procedure,” says Huobi.pro. “And the Wax team has indicated that they are willing to compensate users’ loss due to the temporary expansion. Huobi Pro will also make compensation to the users who are affected by this split. And the specific compensation details are still under negotiation.”

Questions Remain Unanswered

But investors have more questions about this potential pump-and-dump incident. WAX ICO participants revealed that they didn’t receive any WAX until 21st. If true, who was it selling WAX a full day before? What kind of role did Huobi play?Huobi CEO Announces 100 Million RMB to Compensate WAX Investors

Instead of answering these questions, Huobi CEO Li Lin on the 26th announced that the company would spend 100 million CNY to compensate WAX investors. He said, “Huobi will always puts users first. I, as operations department of Huobi.pro, should learn from the incident to better service our users.” WAX price increased 17.55% in reaction to the announcement.

What do you think of the pump-and-dump? What role did Huobi play in the incident? Let us know your comments below. 


Images courtesy of Shutterstock, Huobi.pro. 


Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

The post Huobi CEO Announces 100 Million RMB to Compensate WAX Investors appeared first on Bitcoin News.

Bitcoin News

Israeli Regulator Investigating Public “Bitcoin” Company for False Claims

December 28, 2017 |

Israeli Regulator Investigating Public "Bitcoin" Company for False Claims

Bitcoin mania has taken over the business world. Companies from India to Long Island are rushing to add bit, coin, crypto or blockchain to their names. As that is the case it would not be a big surprise if some have also stretched the definition of what they do too far just to have some connection to cryptocurrency. Now Israeli financial authorities have to decide how much hype is too much.  

Also Read: Israeli PM Netanyahu Says Bitcoin Is Rising as Banks Are Destined to Disappear

Israeli Regulator Investigating Public "Bitcoin" Company for False ClaimsLast week we reported about a new trend among firms whose shares are listed on the Tel Aviv Stock Exchange (TASE) – declaring they have some connection to bitcoin. Among those was a solar energy technology company, Apollo Power (TASE: APLP), which announced it carried out a “successful test” of mining cryptocurrency with the system it’s developing.

This company was able to push its stock value up 150% in early trading by basically just mining half an hour for an insignificant amount of ether (about 4 cents worth), details it did not initially disclose. The share price has since come crashing down to reality, but management might have bigger concerns right now. The Israel Securities Authority (ISA) is reportedly investigating the firm for making false claims to investors. Beyond the specific matter at hand, this move is very likely also another attempt by the ISA to make it clear it will not welcome bitcoin to the TASE in any way.

Israeli Brokers Want Bitcoin Options

Despite repeated ISA warnings, Israeli investors are apparently still clamoring for some exposure to bitcoin or its derivatives. An “ultra-secure” new crypto phone promoted by soccer star Leo Messi has raised over $ 157 million from VC and ICO investors. The local ecosystem for ‘blockchain startups’ is thriving with many new entrants, and even the government is thinking about possibly joining the action with a new crypto shekel.

And all this excitement did not pass by stock brokers unnoticed. The head of the brokers’ association, Julien Assous, said: “There is definitely room for listing options on bitcoin and other cryptocurrencies on the TASE. It’s an opportunity for the local stock exchange to take the lead on a global level. What is good for the CME and CBOE stock exchanges, which are the world’s largest derivatives exchanges, (which now offer bitcoin futures) is also good for our stock exchange.”

Assous, who is also a TASE director, added: “Instead of sending the public to unsupervised entities to buy these currencies, action could have been taken in the familiar channels. This is a once-in-a-decade opportunity to revive the TASE and attract investors here from all over the world. Moreover, since bitcoin belongs to no one, no permission from anyone is needed in order to list options on it.”

Israeli Regulator Investigating Public "Bitcoin" Company for False ClaimsShould investors trust anyone that claims to have some connection to bitcoin? Tell us what you think in the comments section below.


Images courtesy of Shutterstock.


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

The post Israeli Regulator Investigating Public “Bitcoin” Company for False Claims appeared first on Bitcoin News.

Bitcoin News

How a 2014 Bitcoin Project Will Pay an Alaskan Schoolgirl’s College

December 28, 2017 |

How a 2014 Bitcoin Project Will Pay an Alaskan Schoolgirl's College

In 2014, a schoolgirl decided to do her class project on bitcoin. As part of her presentation, she distributed 30 paper wallets containing BTC to her classmates. Three years later and half of her peers still have their wallets, with some planning to use the windfall to help pay for college. The girl at the center of the story has benefited the most however: years of performing chores, paid in bitcoin, have seen her pocket money swell to over 3.5 BTC.

Also read: Twenty Years Ago, Two Men Predicted Bitcoin

Smart Kids Get Paid in Bitcoin

Clever kids don’t badger their parents for a pocket money raise: they simply request a change in currency, from fiat to crypto. That’s what one sixth grader did back in 2014, but the enterprising girl didn’t stop there. The 12-year-old sought to educate the rest of her class on the wonders of bitcoin, which formed the topic of her science fair project.

How a 2014 Bitcoin Project Will Pay an Alaskan Schoolgirl's College

Armed with some bitcoin, kindly donated by members of r/bitcoin, and the support of her bitcoin-mad parents, the girl created an information stand which addressed what bitcoin is, how it works and how it can be used. Her submission evidently pleased the judges, who awarded her first place in the Interior Alaska Science Fair. Some kids would have accepted their rosette and moved on, but not this one. Today, the now-15-year-old remains a big fan of bitcoin – which has been very good to her in the intervening years.

It’s Never Too Early to Talk About Bitcoin

In a post to r/bitcoin this week, the girl’s mother provided an update on the legacy left by the winning science project. She wrote:

Those 30 kids are all now about 15 and they all have their wallets, so cool. My daughter made sure they added little bits to their wallets in the bitcoin lows (and highs – haha). Some have never spent and are saving for college or gonna hold for the long haul.

She finished: “Little Alaska group of crypto kids talking about decentralized banking, forks, and the current issues with bitcoin now when they hang out. All from this little science project in 2014.”

How a 2014 Bitcoin Project Will Pay an Alaskan Schoolgirl Through CollegeAt the time of the project, one bitcoin was worth about $ 850. Pupils who were disciplined enough to hodl – and to retain their paper wallets – are now sitting on a healthy lump sum. The wallet that the girl used to collect donations to fund the 2014 project now contains 3.45 BTC. The mother explained that she’s stored the private key in a safe place and will give it to her daughter when she turns 18, whereupon she’s free to use the funds to pay for college.

As this story illustrates, it’s never too early to teach your kids about money and to give them a measure of financial freedom. If bitcoin fees are preventing you from issuing your kids with micropayments for washing the car, there are always alternatives – bitcoin cash for one. Alternatively, create a virtual ledger on a whiteboard in the kitchen displaying “off-chain transactions”, before rounding them up and issuing them at the end of the month. For parents who are big on bitcoin, there’s a wealth of ways to incentivize the next generation to take an interest in cryptocurrency.

How have you tried teaching your kids about bitcoin? Let us know in the comments section below.


Images courtesy of Shutterstock and kimberlitepipes.


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Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors

December 27, 2017 |

Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors

The Russian finance ministry has unveiled its proposals for the regulation of initial coin offerings (ICOs) in the upcoming bill to be submitted this week. They include the maximum amount an ICO can raise as well as an investment limit for unqualified investors.

Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales

Proposed Limits on ICOs

The Russian Ministry of Finance has prepared a bill to be submitted on December 28. Deputy Finance Minister Alexei Moiseev described the bill, as reported by Tass on Wednesday:

A maximum of 1 billion rubles [~ USD$ 17.3 million] can be raised through an ICO, and each unqualified investor will be able to invest a maximum of 50,000 rubles [~$ 864].

Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors
Russia’s Deputy Finance Minister Alexei Moiseev.

He clarified that a qualified investor can invest any amount. “We want to make the bill as direct as possible and minimize the reference to the norms of the Bank of Russia so that the regulation of ICOs does not become another currency control,” Moiseev emphasized.

Currently, ICOs and cryptocurrencies are not regulated in Russia. However, President Vladimir Putin has mandated the government to create a regulatory framework for them by July 1 of next year.

Market Participants’ Comments

Russia Unveils Proposed Regulation Putting Limits on ICOs and InvestorsFollowing Moiseev’s announcement, market participants reportedly welcomed the proposals, according to Ria Novosti.

“I think this is an excellent starting position for the market, that there are some restrictions on the amount of general investment and qualification of investors,” said Eugene Gordeev, the founder of Decenter portal. For “an ordinary user,” he was quoted by the publication, “50 thousand rubles is more than enough” to start investing in an ICO. Based on his experience with token sales, he noted that retail investors usually invest one thousand dollars.

Mansour Hüseynov, director of the Cryptolife Investment Fund, commented:

The proposals for regulating ICOs look logical, [however] the threshold of 50 thousand rubles seems to be understated, I would propose 500-600 thousand rubles [~$ 8,635-104,400].

Earlier this week, the country’s finance minister Anton Siluanov told Russia 24 TV channel in an interview that only “professional traders should work with cryptocurrencies,” not ordinary citizens who may see bitcoin as a way to get rich quick.

According to the chairman of the State Duma Financial Markets Committee, Anatoly Aksakov, the bill for the regulation of both cryptocurrencies and ICOs is expected to be adopted by the end of March.

What do you think of Russia’s proposed ICO regulation? Let us know in the comments section below.


Images courtesy of Shutterstock and Euronext.


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