millions Archives -
Lars Mittank spent the first week of July 2014 with friends at a Bulgarian beach resort. He has spent the nearly four years since as one of YouTube’s greatest mysteries. Kirk Pepi has the story at Mel Magazine . Pepi writes that the 28-year-old’s holiday with his five former classmates from…
Welcome to the second instalment of Bitcoin in Brief, a daily feature from the news.Bitcoin.com team. In today’s roundup: examining the ownership of pre-2010 bitcoins, Vitalik Buterin calls out Craig Wright, and John McAfee’s price per tweet sets tongues wagging.
Vitalik Buterin Takes On Craig Wright
Vitalik Buterin is a man of few tweets, except for those times when he isn’t. In a monster 62-part tweetstorm, he covered the live panel debate with Roger Ver and Blockstream’s Samson Mow at Deconomy 2018. The Bitcoin vs Bitcoin Cash showdown, as it was billed, saw both figures let fly. Buterin was broadly supportive of the big blockers, tweeting “I’m on Roger’s side here; $ 50 fees [for BTC] should IMO count as a de-facto liveness failure”.
Buterin also wrote: “I’m ok with the super-big-blocker position [advocated by BCH proponents] but only if sharding techniques…are used to make light client verification easier.” While the technicals of the debate are enthralling to those who care about bitcoin scaling and “Core vs Cash”, the biggest talking point was Vitalik Buterin taking to the floor to call out Craig Wright for being a “fraud”. Buterin really doesn’t like Wright, and the video of the ethereum founder heckling Wright has now been watched more than 129,000 times.
From One Satoshi to Another
Craig Wright is an intriguing character whose research papers have their moments. However, Satoshi’s identity will likely never be known, and his bitcoins may never move, along with a handful of others who amassed a small fortune pre-2010 when coins could be mined on “easy mode”, with a 50 BTC block reward. Earlier today Tuur Demeester dragged up a famous blog post from 2013 which postulated that most of those early coins were mined by Satoshi.
Blockchain researcher Antoine Le Calvez chipped in, adding: “1.76M BTC are still stored in legacy naked pubkey outputs (the same as very early coinbases). So 1/1.7M for a single early miner wouldn’t shock me. Whether it’s Satoshi or not is another question.”
The Price of a Tweet
Major social media stars such as the Kardashians can earn up to $ 400,000 for a single promoted tweet or Instagram post. John McAfee, meanwhile, will shill your ICO for $ 105,000 per tweet. Whether that’s value for money (and whether it’s ethical) is a matter for debate, but other crypto influencers such as Jameson Lopp and Chris Burniske have publicly said they would never sully their reputation by posting promoted tweets. Given the option between a single McAfee tweet or a $ 105k marketing budget to play with, most ICOs would surely plump for the latter.
Gemini Gets Greedy
Gemini exchange has angered customers by upping its trading fees substantially. They’ve increased four-fold for the majority of traders, though there seems to be a workaround of sorts for customers who begrudge going from 0.25% to 1%, which is surely all of them.
Back to the Gold Standard
A bill has been introduced in the House of Representatives seeking to define the U.S. dollar as a fixed weight of gold. The document includes the finding that “The United States dollar has lost 30 percent of its purchasing power since 2000, and 96 percent of its purchasing power since the end of the gold standard in 1913.” If only there were some sort of deflationary digital alternative to the U.S. dollar that could be sent P2P anywhere in the world…
What other bitcoin stories caught your attention today? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
The post Bitcoin in Brief Wednesday: Satoshi’s Millions and the Price of Publicity appeared first on Bitcoin News.
“The single-most powerful explosive event ever witnessed” took place somewhere between 1645 BC and 1500 BC, when the volcano Thera erupted on what’s now the island of Santorini. LiveScience reports its power has been likened to that of an 1883 eruption in Indonesia that could be heard 3,000 miles…
‘Caravan’ marches on unimpeded, despite Obama administration spending millions to help Mexico control borderApril 2, 2018 | dailybusinessnews
Though Mexico claimed just four years ago it had “absolute control of the southern border,” the planned stringent security checks appear to have broken down — or been bypassed — by the caravan of more than 1,000 Central Americans making their way through the country en route to the United States.
Facebook Inc. has suspended Cambridge Analytica, a data company that helped Donald Trump win the presidential election, for receiving and failing to delete as many as 50 million Facebook profiles without their owners’ permission.
Facebook said in a blog post Friday that Cambridge Analytica received…
As sports fans are swept up in the March Madness college basketball craze, it’s a good time to consider the madness of the coaches’ salaries.
Running a major cryptocurrency exchange is a lucrative business. Coinbase is reported to have made over $ 1 billion last year, and Binance is on course to pull in $ 850 million annually. While the bulk of these profits come from trading fees, they’re not the only revenue stream: exchanges are also pocketing millions from the fees ICOs and altcoin developers must pay to have their token listed.
Exchanges Are Making a Pretty Penny
Most cryptocurrency exchanges don’t publicly advertise their listing fees, though these are known to run into the hundreds of thousands of dollars, and the millions in some cases. The bigger the exchange, the higher the price that must be paid for tapping into its liquidity pool and army of existing users. Business Insider reports on ICO founders who claim to have been asked for between $ 50,000 and $ 1 million for having their token listed. Binance CEO Changpeng Zhao questioned these numbers, and also defended listing fees, tweeting “most investment banks charge 7% for just underwriting an IPO deal”, by way of comparison.
It’s not just centralized exchanges that can hold ICOs hostage with hefty listing fees: the same is true of major cryptocurrency mobile wallets too. One altcoin developer told news.Bitcoin.com that they were quoted a fee of $ 3.5 million for being integrated with a popular mobile wallet. They declined. Exchanges such as Bittrex and Bitfinex assert that they do not charge a listing fee, though some people question this. With exchanges requiring ICOs to sign highly restrictive NDAs before token listing can even be discussed, firm figures are hard to come by.
A License to Print Money
It is rumored to cost up to $ 1 million for a listing on Binance, with the only exception being the community coin of the month that’s voted in by platform users. (One source has placed Binance’s listing fee at closer to $ 350,000, but expresses uncertainty over whether this is a one-off or annual fee.) For many altcoins and ICOs, the cost of a ticket to the high liquidity league is simply too much, limiting these projects to smaller exchanges such as Gate.io and Tradesatoshi. Viacoin developer Romano wouldn’t confirm how much he paid to get VIA on Binance, but conceded that had it not been for a successful crypto trading career, he would have been unable to afford it.
For all their associations with decentralization, cryptocurrencies are still heavily reliant on centralized platforms. Securing support from big exchanges and major hardware and software wallets isn’t essential, but without such adoption, altcoins risk being marginalized and inaccessible to the masses. It’s one of many paradoxes within the crypto space: for crypto to go mainstream, it needs to be on mainstream platforms. Exchanges like Binance and Coinbase are the Facebooks of the cryptoverse; virtual monopolies with the power to make or break projects.
Do you think cryptocurrency exchange listing fees are excessive or immoral? Let us know in the comments section below.
Images courtesy of Shutterstock.
Get our news feed on your site. Check our widget services.
The post Cryptocurrency Exchanges Are Making Millions from Just Listing Coins appeared first on Bitcoin News.
Jerry and Marge Selbee had sold the convenience store they’d operated in Evart, Mich., for more than 15 years, but still stopped in on occasion to check in on the new owners. On one morning in 2003, Jerry left with a brochure that ended up spurring an endeavor that would…
Norma Diaz and her husband, Joseph Garcia, have dedicated their careers to running a nonprofit health insurer that covers some of California’s neediest residents.
For three decades, they have worked for a Medicaid managed-care plan, Community Health Group, serving nearly 300,000 poor and disabled…
Late 2017 will long be remembered as the time when bitcoin went mainstream. Prices were mooning, and the general atmosphere was one of fear of missing out. That sentiment was especially true in trading circles, and more traditional outlets were experimenting with cryptocurrency divisions in order to take advantage. One such experiment went sour, as a trader attempted to play upon relative company ignorance by shorting bitcoin and covering personal margin calls, with the affair ending in million dollar losses and a first of its kind federal prosecution.
Also read: Citibank India Bans Bitcoin
Bitcoin Trader Faces 20 Years in Prison
Consolidated Trading, LLC’s Joseph Kim, according to federal authorities, emailed, “Until the end I was perversely trying to fix what I had already done. I can’t believe I did not stop myself when I had the money to give back, and I will live with that for the rest of my life. You have every apology I have to give, I am sorry to betray you all like this.”
John R. Lausch Jr, United States Attorney for the Northern District of Illinois in conjunction with the Federal Bureau of Investigation (FBI), insists Mr. Kim “worked as an assistant trader for…a Chicago trading firm that recently formed a cryptocurrency group to engage in cryptocurrency trading…Over a two-month period in the Fall of last year, Kim misappropriated at least $ 2 million of the firm’s Bitcoin and Litecoin cryptocurrency for his own personal benefit, and he made false statements and representations to the company’s management in order to conceal the theft.”
According to reports, Mr. Kim had previous experience in cryptocurrency by way of working in South Korea for a time after graduating from the prestigious University of Chicago. He joined Consolidated in the Summer of 2016 as an assistant bond trader. Employees describe him as having gone by the online name “degen,” as in ‘degenerative gambler’.
It’s the first federal criminal prosecution of its kind in Chicago, and Mr. Kim, 24, is being charged with one count of wire fraud punishable by up to 20 years in prison. U.S. v. Kim, 18-cr-107, states “from September through November 2017, Kim transferred more than $ 2 million of the trading firm’s Bitcoin and Litecoin to personal accounts to cover his own trading losses, which had been incurred while trading cryptocurrency futures on foreign exchanges.”
Attempting to Cover Tracks
By Fall of 2017, Mr. Kim was made part of a cryptocurrency wing of Consolidated, moving from its bond division. That was a heady time for crypto, especially bitcoin, and price action steeped to unheard of highs. Mainstream trading outlets were itching to be part of the market. Shortly after, the complaint alleges, Mr. Kim moved nearly 1,000 litecoin from company coffers to his own, an “intermediary holding space” he reportedly offered as excuse for the unorthodox maneuver due to Bitfinex exchange issues. Something like that, according to prosecutors, was also done with bitcoin, to the tune of 3.2 million USD, as a way to cover personal losses (1.2 million USD was eventually returned).
When questioned at the time by company officials, Mr. Kim is reported to have claimed he returned at least the litecoin (his alleged dealings in bitcoin hadn’t been discovered). When Mr. Kim was suspected of mishandling bitcoin, he again offered excuses that the company increasingly worried were not adding up, though Mr. Kim seemed to assure all was well. By late November, 280 bitcoin were suspected missing.
What seems to be clear is Mr. Kim used bitcoin for personal trading, and Consolidated and federal authorities believe he stole over 280 bitcoin at one time or another. Though he did manage to transfer some back, inevitably losses began to add up. Mr. Kim reportedly admitted to the company he indeed transferred 55 bitcoin from the company to his personal wallet. He also allegedly came forward to explain he was trying to short bitcoin, at times converting litecoin for that purpose. There are also allegations he used company bitcoin accounts to help cover margin losses.
As it stands, Consolidated was able to recover some 144 bitcoin, but claims to have lost as much as 600,000 USD as a result of Mr. Kim’s doings. Mr. Kim and his attorney have not been made available for comment. He is expected to face a federal judge today, 16 February 2018, in order to enter a plea.
What are your thoughts on this federal case? Let us know in the comments section below.
Images courtesy of Pixabay, LinkedIn, DOJ
Need to calculate your bitcoin holdings? Check our tools section.
The post Trader at Chicago Firm Stole Millions in BTC – Faces 20 Year Sentence appeared first on Bitcoin News.