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| August 15, 2018

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Trump Issues Warning to Nations That Defy US on Iran

August 7, 2018 |

President Trump issued another warning in regard to Tehran on Tuesday, but this time it’s directed at nations outside Iran. “Anyone doing business with Iran will NOT be doing business with the United States,” Trump tweeted . “I am asking for WORLD PEACE, nothing less!” The message comes as the first…
Newser

NYT Publisher Issues Statement on Meeting With Trump

July 29, 2018 |

The publisher of the New York Times has released a statement following President Trump’s tweet about a meeting the two had together July 20. According to A.G. Sulzberger, the White House requested the meeting, which Trump said Sunday morning centered around the “vast amounts of Fake News being put…
Newser

Hedge Fund Issues Bearish Call on Ethereum and Sides with BTC

July 18, 2018 |

Hedge Fund Issues Bearish Call on Ethereum and Sides with BTC

Hedge fund Tetras Capital has issued a bearish call on ethereum and opined that bitcoin has more upside potential. The New York-based fund has been blessed with perfect timing, with ETH falling in BTC terms following the publication of its report 24 hours ago, while bitcoin has rallied strongly.

Also read: Post-Flood Reflections Reveal Insights Into Lives of Sichuan Miners

Tetras Capital Gives Ethereum the Thumbs Down

Hedge Fund Issues Bearish Call on Ethereum and Sides with BTCSingle-handedly, no investment fund can commandeer the market and short a particular asset. But by issuing an unequivocally bearish call, it can capture the attention of other traders and attempt to convince them of its wisdom. Convert enough of them, and it might be sufficient to make the pessimistic prediction come true. That seems to have been the intention of Tetras Capital, who caught the headlines on Monday after publishing a “Bearish Thesis” on ethereum.

A blog post outlining the fund’s reasons for going short on ETH linked to a comprehensive 42-page report that detailed its case in forensic detail. Tetras Capital was hoping for headlines and its wish was quickly granted. Not only has the hedge fund’s proclamation gained traction, but so far, its call appears to be bearing fruit. Every single crypto asset in the top 100 has rallied in the last 24 hours, with bitcoin predictably leading the charge. Ethereum has slipped in BTC terms, however, dropping from around 0.072 at the time of Tetras Capital’s report to 0.0684 BTC at the time of publication.

Long on Bitcoin, Short on Ethereum

“Just as ETH benefited from irrational exuberance, it will inevitably suffer further as the market sobers up,” claims the hedge fund, before continuing:

We believe that ETH’s current price is still significantly overvalued; still significantly decoupled from the Ethereum network’s current and near-term technological state. Our research has led us to believe that the market and technology is still far too immature to justify current valuations. This nascent asset class has taken off due to speculative narratives, and we believe that the current marketplace is not sophisticated enough to properly evaluate risks or general economic concerns.

In setting its stall firmly in the anti-ETH camp, the New York hedge fund is going against the predictions of ethereum maximalists such as Coinbase CEO, Brian Armstrong, who is firmly in Team ETH. Even Vitalik Buterin has been forced to concede that ethereum has had its problems of late, noting that $ 15m has been wasted on gas recently due to network spam which has caused ETH fees to surpass those of BTC.

Making Bearish Predictions is Good for Publicity

Hedge Fund Issues Bearish Call on Ethereum and Sides with BTC
Bill Ackman

There’s a history of investors making very public calls to short particular assets, and in doing so going against the prevailing market sentiment at the time. Legendary hedge fund manager Bill Ackman, for example, tried shorting Herbalife for years, before eventually calling off his long-running campaign, at great expense to his wealth and reputation. Tetras Capital will be hoping for a greater ROI from shorting ethereum, be it literally or symbolically by putting the bulk of its assets into BTC instead.

The hedge fund’s bearish forecast finishes: “We believe the coming months will be extremely telling for Ethereum’s future. Network strain (from Dapp usage), competition (from alternative Dapp platforms), and regulation (towards ICOs) will test the speculative hype and price of ETH.”

Do you think Tetras Capital is right to be bearish on ethereum? Let us know in the comments section below.


Images courtesy of Shutterstock, and Tetras Capital.


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

The post Hedge Fund Issues Bearish Call on Ethereum and Sides with BTC appeared first on Bitcoin News.

Bitcoin News

Pussy Riot Issues Demands

July 15, 2018 |

“Hello everyone from the Luzhniki field, it’s cool here!” So tweeted Pussy Riot after claiming responsibility for four people who rushed the World Cup final field Sunday in Moscow, the Washington Post reports. The one man and three women briefly stopped play by appearing in police uniforms, with one getting…
Newser

Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

July 13, 2018 |

Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

The Texas State Securities Board has taken an emergency action to stop a network of crypto-related companies from illegally offering investments in the state. A token offering and a mining firm are among those targeted by the securities board as selling fraudulent “cryptocurrency-related investments.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Emergency Action Taken

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesThe Texas State Securities Board announced Thursday that an emergency action has been taken to “target promoters of crypto-mining investments.” According to the notice published on July 12 by the Board:

Texas Securities Commissioner Travis J. Iles took emergency action July 11 to stop a network of companies from fraudulently offering cryptocurrency-related investments to Texas residents.

Utah-based companies Mintage Mining LLC, Symatri LLC, NUI Social, Social Membership Network Holding LLC, and BC Holdings and Investments LLC are named in the emergency cease and desist order. They are all controlled by Darren Olayan of Lehi, Utah. In addition, NUI Social affiliates, Utah-based Douglas Whetsell and Houston-based Wyatt Mccullough, are also named in the order.

Investment Schemes

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesMintage Mining LLC allegedly issues and offers two different crypto mining-related investments “illegally and fraudulently.” Together with Symatri LLC, they sell “pre-configured computer hardware to mine Kala,” an ERC-20 token which Symatri claims to be “fungible and transferable, and it is expected to be traded on cryptocurrency exchanges in the near future.”

Symatri also claims that more than 13,000 users have signed up for Kala’s ICO, which sold more than 814 million tokens. It supposedly raised over $ 8.5 million and more than 800 BTC. According to the Commissioner:

Symatri is not disclosing material information about the value of its cryptocurrency Kala. Nor is it providing information about the risks of investments in the computer hardware used to mine Kala.

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesNUI Social is a multi-level marketing company that claims to have more than 300,000 members in 140 countries. Members of the scheme recruit individuals for crypto investments and earn commissions for the people that they recruit.

Whetsell and Mccullough were named for publishing “advertisements targeting Texas residents,” the Commissioner explained. According to the document, the promoters made claims such as:

The average weekly rate of interest varies from three percent to seven percent and the annual rate of interest ranges from 180 percent to 250 percent.

The advertisements also represent that Mccullough’s investment grew 500% within 7 weeks while his uncle’s rose 4,000% in 10 weeks.

The Violations

The order “alleges widespread violations of the Texas Securities Act” by all of the entities and individuals named within. According to the Commissioner, “none of the persons offering any of the investments are registered to sell securities in Texas, nor are the investments themselves registered for sale or have qualified for an exemption from registration.”

The Commissioner elaborated:

The violations include making deceptive claims to the public. Olayan and Mintage Mining, for instance, are telling investors that Mintage is ‘in compliance’ with securities laws, ‘works to always stay ahead of cryptocurrency regulation,’ and ‘remain[s] so continually by keeping in contact with legal firms.’

All named parties have been ordered to immediately cease and desist from offering a security for sale in Texas until the security is registered or exempt. They must also cease acting as securities dealers or agents in the state until they are registered or exempt. They have likewise been told that they cannot engage in any security-related fraud in the state.

What do you think of the Texas State Securities Board’s cease and desist order? Let us know in the comments section below.


Images courtesy of Shutterstock and the Texas State Securities Board.


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

The post Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies appeared first on Bitcoin News.

Bitcoin News

Schumer forced to call in after canceling town hall due to plane issues: report

July 3, 2018 |

Sen. Chuck Schumer, D-N.Y., on Monday—citing an equipment issue that grounded his small plane—was forced to cancel a town hall in Brooklyn, annoying some in attendance who waited hours for his arrival in a hot synagogue.
FOX News

TMZ

Heather Locklear to Undergo Long-Term Care for Substance, Mental Health Issues

June 30, 2018 |

Heather Locklear will soon move from the psychiatric ward at an L.A.-area hospital to a long-term facility so doctors, psychiatrists and others can help her deal with serious substance abuse as well as mental health issues … TMZ has learned.…

TMZ.com

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues

June 25, 2018 |

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues

Over the past few months, there’s been a lot of headlines and new wallets created for the notorious Lightning Network — The second layer payment protocol that’s being touted as a solution to the BTC chain’s scaling issues. The project is in its very early stages as the technology is still in beta, but people are actually using the protocol on main-net with real funds. So far this technology still seems very far away, and some people looking beyond the hype are finding individuals and groups who are testing this second layer are running into problems.

Also read: Bitcoin and Mnemonics: The Art of the Secret Phrase 

Lightning Network Tipping Turns Out to be Not So Easy

For a while now in the cryptocurrency space people have been hearing about the Lightning Network (LN), new LN wallets, and areas on the internet that allow users to test the technology using both Bitcoin Core’s (BTC) testnet and mainnet. A percentage of individuals and cryptocurrency users have been using the second layer protocol on the main BTC network as there are 2,307 LN nodes today, and 5,036 open channels. According to statistics, the Lighting Network shows over $ 142,000 USD worth of BTC locked in channels or being used on the network right now. There has been a lot of noise about using LN and posts can be seen on social media channels and forums almost every day with people demonstrating the LN protocol. However, even though there seems to be a lot of action on the pixelated graphics website ‘Satoshi’s Place’ people are experiencing lots of issues with this protocol and there are many LN problems without solutions.

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues
Lightning Network June 25, 2018.

For instance on a Reddit post stemming from the subreddit r/bitcoin called “Lightning Network Submarine Swaps,” shows an interesting interaction between two LN users. One user named ‘Windsok’ wants to tip another Reddit user with five bucks worth of BTC, and he asks the recipient to create an LN node and send him an invoice for $ 5 worth of BTC.

“Oh goody, a tip! You made me finally download and install a lightning node,” explains the hopeful recipient. “Now I’ve got it up and running and some funds in a channel for the first time — but, alas, I can only receive $ 5 via that channel once I’ve spent $ 5.”

The Common Answer to LN’s Problems: Custodial Services, Watchtowers, and Centralized Hubs

The problems get worse for the two as the invoice expires for the user trying to receive the money. Then he creates an invoice with a longer expiry which also has issues. But one problem observers took issue with was the fact that a new user must use some of the BTC on the LN network, before being able to receive funds. Further, the person trying to receive the BTC explains he never got the tip and users may have to utilize a custodial service to benefit from LN.  

“I never got the tip because his node couldn’t find a route to mine,” explains the user.  

Partly this is likely due to my node being often offline, as it is on my laptop. For tips and receiving small amounts I think laptop users like myself will need to use custodial wallets once they are available, and withdraw from them to a self-hosted node whenever we have an opportunity.

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues
An interesting post on trying to receive an LN tip.

Sorry This Channel Has Closed, Try Again Another Time

This isn’t the only time people are seen on the internet complaining about the LN protocol not working correctly. With a quick Google search, anyone can find lengthy studies about LN’s topology concerns, discussions about centralized hubs, watchtowers, and routing problems. For instance, downloading an LN node is a long process and for the non-technical people in the world, it is difficult and a hassle. Alternatively, using light client wallets like Eclair and others also have connection issues, and people are always losing access to their channels that are constantly opening and closing.

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues
Eclair wallet.

LN users using the ‘lnd’ client will find issues with Satoshi’s Place (SP) because SP uses ‘c-lightning’ and there are issues with incompatible fees. LN Nodes have difficulties finding routes so then some people recommend connecting to more centralized nodes like Yalls or Acinq’s nodes in order to find a route. And even with these methods channels close often, usually after 10-15 minutes and sometimes immediately.

Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues

The problems and bugs revolving around LN most definitely begs the question — Will the Lightning Network provide a solution to network congestion if it happens again? When will LN help with the rising network fees? Some skeptics believe even from the current vantage point that this second layer protocol is way more than “18 months away,” and even further than that when it comes to non-technical users otherwise known as mainstream adoption. Even worse is the theoretical chance that LN could lead to significant centralization, and KYC/AML regulations because major hubs in this hub & spoke environment could end up being the very banks we tried to avoid.   


Images via Pixabay, reksplorer, Eclair wallet, and Reddit.


erify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Looking Beyond the Lightning Network Hype: Every Day Users Experience Issues appeared first on Bitcoin News.

Bitcoin News

Disney Issues Seizure Warning for Incredibles 2

June 18, 2018 |

After anecdotal warnings circulated on social media , Disney has issued an official seizure warning for Incredibles 2 . Both the film and the trailer contain flashing or strobe light effects, which can cause seizures for some epileptic viewers; the Epilepsy Foundation spoke out about the issue, and a petition called for…
Newser