whales Archives -
In today’s edition of The Daily, we look at the cryptocurrency entrepreneurs who now rank among the richest people in China, the limited return to operations of 1Broker, and a rather amusing attempt to explain Bitcoin to older folks by the AARP.
China’s Wealthiest Whales
The Hurun China Rich List 2018, the Chinese answer to the Forbes 400, was released on Wednesday and for the first time includes a total of 14 people working in the cryptocurrency space. This is the 20th annual ranking of the richest individuals in China, with a wealth cut-off of 2 billion yuan ($ 290 million). A total of 1,893 individuals made the list this year.
Two Bitmain executives — Zhan Ketuan (95th place with 29.5 billion yuan), age 39, and Jihan Wu (204th place with 16.5 billion yuan), age 32 — led the way. The third Chinese crypto whale, 41-year-old Binance founder Zhao Changpeng, took 230th place on the list at roughly 15 billion yuan. The report also noted that the blockchain industry is now officially the fastest-growing source of billionaires in China.
Other well-known crypto personalities on the list include Okex’s founder Star Xu, with 10 billion yuan, who took 354th place, as well as Leon Li of Huobi, who was ranked 556th, with 7 billion yuan.
1Broker to Start Processing
Withdrawal Requests Today
Marshall Islands-registered contracts-for-difference broker 1pool Ltd., which operates the 1Broker brand, has announced that the company will revive some if its functions today. The team tweeted that they will start processing clients’ withdrawal requests at 12:00 (UTC).
Three U.S. agencies took action against the international, bitcoin-funded securities dealer last month, including seizing its website domain for a period. The U.S. authorities alleged at the time that an undercover special agent with the Federal Bureau of Investigation “successfully purchased several security-based swaps on 1Broker’s platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws.”
‘A Bunch of Computer Code’
It can be very difficult to explain the invention of cryptocurrency in a sentence or two, given that it’s a topic involving cryptography, computer science and economics. This is particularly true if one is trying to reach an audience that might be frightened or put off by new technologies and unfamiliar terms.
The AARP (formerly the American Association of Retired Persons) published a glossary of “Wall Street buzzwords” this week to help senior citizens improve their financial literacy and cut away the confusion when talking with high-finance big shots. But the list took a somewhat funny swipe at Bitcoin, while echoing some particularly tired tropes.
The glossary defines Bitcoin as “a bunch of computer code that a bunch of criminals, idealists and speculators agree is worth ‘real’ money. Sadly, its real-money value swings widely, making it impractical except for criminals, idealists and speculators.”
The AARP also defines Blockchain as: “1. A different bunch of computer code containing an unalterable record of a series of transactions. The most famous is a digital ledger recording all bitcoin transfers. 2. A word often uttered by companies hoping to snare investors’ attention — and dollars.”
The rest of the terms were also written in a comical way. For example, one entry defines an ETF as “marry a mutual fund to a stock and this is their baby.”
What do you think about today’s news tidbits? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify 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 The Daily: Whales Join China’s Richest Ranks, Seniors Take a Swing at Bitcoin appeared first on Bitcoin News.
Imagine strolling down the beach and discovering a razor-sharp tooth from a shark twice the size of a Great White. Well, meet Philip Mullaly: “It was an awesome creature, it would have been terrifying to come across,” the amateur fossil hunter and schoolteacher tells the New York Times of his…
2018 might not be the best year for crypto investors so far, but a lot of wealth is still in the hands of long-term holders. The latest example of this comes from Silicon Valley where some people are using bitcoin to buy millions worth of expensive timepieces, diamonds and other luxury items.
Crypto Surpasses Credit Cards
Stephen Silver Fine Jewelry, a Silicon Valley-based ultra-high-end watches and jewelry boutique which implemented cryptocurrency payments back in 2014, reports that crypto transactions have grown to 20% of sales in the past year, helping the company close expensive sales. The company accepts payments in cryptocurrencies such as BTC, BCH and XMR, but only from authorized and approved Bitpay wallets. It started doing so as an easier and more secure alternative to wire transfers, providing much faster transfer times than the old legacy systems.
“Cryptocurrency has surpassed the volume of retail credit-card purchases in the company in a very short time period,” CEO Stephen Silver said. “We’ve created revenue that the company would not even enjoy without being able to accept cryptocurrency…. Large sums of money are where we are finding cryptocurrency to be a huge advantage.”
Indispensable Tool at Cradle of Innovation
The company has been monitoring the development of cryptocurrency for years, “Given that Stephen Silver Fine Jewelry is based in Silicon Valley, the cradle of innovation,” president Jared Silver told diamonds industry publication Rapaport News. “In 2014, we felt it had matured to the point that we could bring the technology into our store.” The company also pays its willing suppliers with cryptocurrency, however “this would be contingent on the supply chain adopting the technology,” he added.
At the bottom line, accepting cryptocurrencies is now an “indispensable” payment method according to the jeweler. The average crypto deal is close to seven figures, and the company can offer no limit on the amount it will accept per sale, since bitcoin transactions are irreversible unlike credit cards. The president also revealed that the company recently received a million-dollar cryptocurrency payment.
Is bitcoin a perfect match for buying expensive luxury items? Share your thoughts in the comments section below.
Images courtesy of Shutterstock, Stephen Silver Fine Jewelry.
Verify 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 Silicon Valley Whales Buy Diamonds in the Millions With Bitcoin appeared first on Bitcoin News.
Japan says it killed 333 minke whales, including 122 pregnant females, at its controversial annual hunt last summer. The hunt is, as always, under fire for its lack of apparent connection to legitimate scientific research and for killing whales rather than taking a non-lethal survey (Japan says its aim is…
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Did you know that the flying cars from The Fifth Element and Blade Runner films have already become reality? Or that using a VR helmet allows you to sit in an office meeting with the world’s leading experts and investors without the traveling hassle? Probably not. Well, here’s a chance.
The Futurama Blockchain Innovators Summit held by Coinsbank in Dubai welcomes you to witness the fruits of the three most revolutionary technologies of the 21st century at once: blockchain, artificial intelligence, and virtual reality. We’ll showcase you futuristic solutions, from the new generations tools for managing your personal health data, to a billion dollar trading algorithm that represents the most advanced artificial general intelligence that can reason and theorize.
The summit is one of the most exclusive gatherings of the world’s sharpest crypto minds. “Very excited to be there and participate” – says Brock Pierce, Bitcoin Foundation, Blockchain Capital, who already shone on the previous Coinsbank Blockchain Cruise.
The Futurama Blockchain Innovators Summit will bring together the crème de la crème of the crypto industry:
– Miko Matsumura, Evercoin Exchange & BitBull Capital;
– Dinis Guarda, TOP 30 Most Influential People in the Blockchain;
– Nicholas Merten, DataDash YouTube (283k subs);
– Federico Pistono, Hyperloop;
– James Glasscock, DNA Capital (the world’s premiere crypto venture fund);
– Jonathan Teo, Binary Capital (over 300M under management);
– Stephen Stonberg, Hedge Fund and Investment Bank (Goldman Sachs, J.P. Morgan, Deutsche Bank);
and 20+ top leaders is calling you to join them in the desert. Come join us and change the world together and for the better!
“Futurama can help us create a truly global community that’s passionate about solving world’s biggest problems with the newest technologies and begin taking steps toward a better future by connecting those who want to build together across jurisdictions and countries” – says Henry Liu, Blockchain Venture Capitalist and ex-Facebook E-Commerce.
Connect with the best. Fly with the loftiest. Float like nothing can stop you. We will show you what the best blockchain innovators can do today.
Surrounded by industry whales and futuristic technology within the setting of spellbinding Arabian luxury and the beauty of the Middle East, you will jump from the largest Futuristic Yacht in the Gulf to the ball at a bright Arab Desert Rose Party, a Burning Man-like experience.
“The event looks like it’ll be incredible”- said Nicholas Merten (DataDash Youtube), one of the most respectable blogger in crypto field. Can hardly wait?
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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: Brock Pierce and 25+ Crypto Whales in the Most Expected Coinsbank Event of the Year appeared first on Bitcoin News.
Germany’s VPE Wertpapierhandelsbank AG (VPE) has announced its institutional investor cryptocurrency trading services and claims them to be the first of their kind for the country. Armed with a Bundesanstalt für Finanzdienstleistungsaufsicht (Bafin) license, in expanding its brokerage offerings VPE purports to offer “best-in-class technology” to customers, “secure and regulated.”
VPE Launches Germany’s First Institutional Investor Cryptocurrency Trading Services
VPE Wertpapierhandelsbank AG spokesperson Katharina Strenski stressed, “Until now, institutional investors have faced high entry barriers to crypto trading. Our cryptocurrency trading services offer a much more convenient alternative.”
The world over, institutional investors, or whales, usually control vast sums of capital. They’ve been looking for ways to leverage cryptocurrency markets, but often run up against their own lobbying efforts in wielding government regulatory power to insulate themselves from competition. The consequences thus far include uneven access to a red hot and emerging asset class, arguably the future of finance in one form or another, cryptocurrency.
“Cryptocurrencies such as Bitcoin, Litecoin, Ethereum and others have become a promising asset class in recent years,” Ms. Strenski detailed. “To date, trading digital tokens has been restricted to crypto exchanges and online marketplaces. We are pleased to be the first German bank to offer our customers cryptocurrency trading services.”
VPE is a German centric exchange-based OTC trader. Financial corporations, private investors, and institutional investors (whales) get brokerage services, investment advice, and portfolio management. Under that umbrella, the bank offers clearing services, settlement of transactions in securities, contracts for difference, options, and futures.
Germany Is an Economic Powerhouse
Germany is an economic powerhouse, and so any entry its companies make into the crypto space will undoubtedly move the needle. It ranks as Europe’s economic engine and its largest economy, is a constant innovator, and is a giant exporter of goods. Routinely the country can boast Europe’s lowest employment rate, and its citizens average over $ 50K per capita.
All this could point to a boost for the digital asset sector as German institutional investors are among the most profitable companies in the world. For its part, as a “securities trading bank,” the bank’s press release continues, “VPE has an impressive trading track record and has access to the appropriate networks and technical requirements for processing individual transactions. VPE also meets all necessary KYC (Know your Customer) and AML (Anti-Money-Laundering) requirements.”
VPE also offers automated crypto trades, “developed in partnership with Solarisbank, the first banking platform with a full banking license, and with support from leading banking and legal crypto experts. VPE’s virtual currency trading account is held in escrow by Solarisbank. Customers will also receive access to an individual virtual currency wallet hosted by VPE. This will make trading fast and simple while ensuring the highest security standards,” the company insists.
Do you think German institutional investors will be a boost for crypto markets? Let us know in the comments section below.
Images courtesy of Shutterstock, VPE.
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At least 140 whales have died after becoming stranded on a beach overnight in Western Australia, the AP reports. Over 150 short-finned pilot whales were first spotted on the beach at Hamelin Bay by a fisherman on Friday morning. By Friday afternoon, all but 15 had died. According to the…
Crypto whales are generally thought of as wealthy traders with the ability to move markets via a single sell order. Yet the greatest whales of all aren’t traders but ICOs which own millions of ether worth billions of dollars. Over 3% of the total ethereum supply is estimated to be in the hands of ICOs, and when those projects cash out, as periodically happens, the effects can be dramatic.
Ethereum Is at the Mercy of ICOs Cashing Out
On Sunday, while the crypto markets were enduring yet more turmoil, ethereum took a sudden nosedive, going from $ 516 to $ 464 in under two hours. Up until then, it had been one of the more stable coins compared to alts still in the experimental stage, which have absorbed the worst of the losses. Ethereum’s flash drop made it one of the worst performers in the cryptocurrency top 100 yesterday, shaving around 16% off its valuation. The cause of the sell-off has been attributed to one of last year’s ICOs offloading a significant portion of its ethereum reserves. If so, it’s not the first time something like this has happened, and it certainly won’t be the last.
Deducing the total amount of ethereum that has been invested in ICOs is relatively straightforward. Around two thirds of the $ 5.7 billion raised by crowdsales in 2017 was in the form of ether. These projects are obliged to sporadically cash out their holdings for fiat currency, to cover expenses that can’t be paid in crypto. And when they do, it makes sense for those projects to withdraw a lump sum. What’s good for them isn’t necessarily good for the market though, especially traders whose longs are rekt by a sudden dump of ETH.
Fear of the Whale
Cryptocurrency markets are much less liquid than traditional financial markets. When hundreds of thousands of ether is sold on the open market, typically via an exchange such as Bitfinex or Kraken, it will instantly depress prices. Traders, ever alert to even the slightest signs of market movement, are skittish creatures, and even the possibility of a coming dump can be a case for concern, as evidenced by the recent fears over the Mt Gox whale dumping BTC en masse – even though those fears have since been assuaged.
12 hours before ethereum dropped on Sunday, EOS moved 50,000 ETH to a Bitfinex address. It is impossible to determine when an entity sells the funds they have moved to a cryptocurrency exchange; the deposit only indicates intent to sell. The contribution addresses of major ICOs are monitored by discerning traders, however, and thus when a crowdsale transfers ETH to an exchange, it can become a self-fulfilling prophecy that serves to deflate prices.
At Least 3.4% of All ETH Is Locked Up in ICOs
One crypto trader professes to have seen figures showing that 3.4% of all ETH, or around 3.4 billion coins, are in the possession of ICOs. When these projects have bills to pay, or fear that the market is likely to deflate further, they feel obligated to cash out. These whales are under no obligation to sell OTC; using a trusted exchange is generally the preferred route. All of this creates downward pressure on ethereum on a scale far higher than that faced by any other crypto asset.
For so long as ethereum remains the preferred fundraising platform for ICOs, the cryptocurrency will remain concentrated in the hands of 100 or so projects, each with the power to offload on the market at any time. In each instance, the market will recover, but not before some traders, especially those using leverage, have absorbed heavy losses. Every cloud has a silver lining though, and when major dumpage occurs, it’s a prime opportunity for other traders to scoop up cheap coins before the price rebounds.
Do you think ethereum is hostage to the large amounts of coins in the possession of ICO whales? Let us know in the comments section below.
Images courtesy of Shutterstock and Coincodex.
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Last year bitcoin had a phenomenal run leading up to its all-time high of $ 19,600 per BTC this past mid-December. The price over the past few weeks had since dipped to a low of $ 5,900 on Monday, February 5, losing close to 65 percent of its value in a short period. The dip has ‘rekt’ a lot of cryptocurrency traders but the ‘richest bitcoin holders’ have gained thousands more BTC taking full advantage of these significant price variances.
Bitcoin Whales Use Big Price Swings to Accumulate More Wealth
Cryptocurrency enthusiasts understand that digital currencies often fluctuate in price and over the years many traders have been able to take advantage of these swings. Essentially if a trader can guess the top and sell their bitcoins, then follow that maneuver by buying back in at the bottom, that individual can gain a lot more coins. One particular group of BTC holders that have taken advantage of these swings time and time again — are the top 100 richest ‘bitcoin whales.’ The individuals or groups of people known as bitcoin whales hold vast quantities of cryptocurrency and they can sometimes use their assets to ‘move the market.’ According to data collected from Bitinfocharts.com most of the 100 richest BTC addresses haven’t lost any money during the last 65 percent dip — In fact, their stacks of BTC increased exponentially.
The Richest Address Has Gained An Exponential Number of Bitcoin’s Since 2016
Take for instance the owner of the most substantial amount of bitcoins located in one address which currently holds 167,000 BTC at the time of writing. The wallet started collecting BTC approximately two years ago when the address recorded its first deposit of roughly $ 840 dollars worth of BTC. Now there is $ 1.4 billion USD worth of BTC held in the wallet as thousands of coins have been collected since its inception. Coincidentally this bitcoin whale has been able to acquire a lot more BTC during each meteoric rise in value, and the typical dumps that follow soon after. In 2017 there have been six ‘major’ corrections that have seen BTC lose over 30 percent or more of its value, and this particular whale has gained more funds every single time.
‘Whale Sightings’ and Speculating Collusion
Many of the wealthiest bitcoin addresses besides wallets that have been dormant for years have followed the same pattern. These bitcoin whales have been able to accumulate more bitcoins due to catching the highs and lows at precisely the right time. Perusing through the top 100 richest addresses shows many of them sold thousands of BTC at once between November and December 2017. Bitcoiners have had many ‘whale sightings,’ and you can often see forum posts and Twitter conversations concerning these market movers during big price spikes and subsequent dumps. For example, on November 12, 2017, when cryptocurrencies were reaching new price highs, blockchain spectators noticed 25,000 BTC was sent to the exchange Bitfinex.
The most affluent bitcoin holders have been a controversial subject for quite some time. Mainstream media likes to assume that 1,000 addresses own more than 40 percent of the market. Some speculators believe whales can even contact each other, which could lead to enormous BTC market movements. Kyle Samani, the managing partner at Multicoin Capital, believes this theory and states:
I think there are a few hundred guys — They all probably can call each other, and they probably have.
The Data Collected from the Richest Addresses to Depict Wealth Distribution Always Fails
However, a research report published last fall reveals that the assumption that “1,000 people own 40% of the BTC market” is false. According to data collected by the Bambou Club, many models of the current distribution of bitcoin wealth that analyze wallets and addresses usually “always fail.” Bambou Club says that the issue with most data estimates is they fail to recognize the relationship between the owner, wallet, and address. “It is not necessarily 1: 1: 1,” explains the report.
“That is to say, it is not true by definition that one person has one wallet that uses a single bitcoin address,” the trading analysis group Bambou Club notes.
For a start, a person may hold many bitcoin wallets. And a wallet can make use of many bitcoin addresses. (Indeed it is advisable to generate a new address every time you use your wallet for reasons of anonymity.) So the relationship can be 1: Many: Many.
Whales Are Getting Bigger, But It Only Takes 15 BTC to be In the Top One Percent
Essentially using a different method of data collection, Bambou Club derived the distribution of global wealth and the global ownership of bitcoin numbers, then the researcher mapped the wealth distribution to calculate a better bitcoin distribution analysis. According to the study, there are more than 25 million bitcoin owners, and it only takes 0.153 BTC to be placed in the top 30 percent most affluent bitcoin owners. Moreover, you only need “15 BTC to be in the top 1 percent,” the data reveals.
While it’s true bitcoin whales are continuing to accumulate BTC over time, mainstream media’s portrayal of the 1 percent is a bit skewed according to a different method of analysis. We don’t know if the whales work together to move the price other than mere internet speculation. But we do know that over the course of various market fluctuations over the years, and especially this past 70 percent dip, many of them have become much larger fish in the sea of bitcoin wealth distribution.
What do you think about bitcoin whales taking advantage of large price spikes and corrections to accumulate more BTC? Do you believe the BTC wealth distribution is too concentrated or do you think that Bambou Club’s analysis is more correct? Let us know your thoughts on this subject in the comments below.
Images via Pixabay, the Great Wall of Numbers, Bitcoin.com, Bambou Club, and Bitinfocharts.com.
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Sunday’s historic opening of Chicago Board Options Exchange (Cboe) bitcoin futures proved almost too much for the legacy market maker. The world’s most popular cryptocurrency, however, remained resilient, and contracts went long, assuming its price would continue to rise, bullish. As its crosstown rival Chicago Mercantile Exchange (CME) readies for its bitcoin futures this coming Monday, the only major broker offering such futures reversed course and is now allowing its monied-clients, whales, to also short bitcoin, an expensive and risky trade for bulls.
Interactive Brokers Bows to its Whales, Permits Bitcoin Shorts
Irony is racking up. Bitcoiners have momentarily ditched their almost religious reverence for Satoshi Nakamoto’s white paper, and are cheering the very institutions the peer-to-peer electronic cash system was designed to thwart. Furthermore, institutional financial media chided bitcoin’s ecosystem for not being able to scale, for its lack of readiness leading up to futures markets…and within literally minutes, it was Cboe that crashed under the weight of the supposed newbie. The final ironic example happened Tuesday in an interview with Buzzfeed.
No person less than bitcoin’s number one Cassandra, the man who took out a full-page Wall Street Journal advertisement to proclaim economic apocalypse should the decentralized currency be permitted on CME, turns out to head the only major brokerage offering bitcoin futures. And he insisted his firm would only allow long contracts, … until they changed course.
“Many of our clients asked us to make trading available for them,” Thomas Peterffy, founder of Interactive Brokers, told Matthew Zeitlin. “Why am I allowing my clients to buy Tesla? Don’t forget that 20 years or even ten years ago, why would you allow people to buy Amazon? I remember when it [went] down to $ 2 [per] share,” Mr. Peterffy analogized, comparing bitcoin to other famous forms of speculation.
Interactive Brokers is considered a pioneer in electronic trading, and routinely ranks highest in the U.S. among such brokerages and foreign exchange brokers. The four decades-old firm has been enjoying its own bull run the last year or so, with revenues as high as 1.4 billion USD.
“Currently,” Mr. Zeitlin explained, “there’s a large premium in the futures market for bitcoin — right now the contract to buy bitcoin on January 17 is worth $ 18,450, compared to the $ 17,460 listed ‘spot’ price for bitcoin itself.”
Bears Can Short as Long as They’re Whales
Mr. Peterffy puts the difference into perspective: “That says to me that there aren’t enough brokers allowing shorting because, if there were, there would be people that buy the cash and sell the futures,” he said.
In his open letter to regulators last month, Mr. Peterffy stressed, “Cryptocurrencies do not have a mature, regulated and tested underlying market. The products and their markets have existed for fewer than 10 years and bear little if any relationship to any economic circumstance or reality in the real world.”
He also notes bitcoin’s price volatility in the letter, and as such went on to initially restrict Interactive Brokers customers from going short.
To have it both ways, essentially, the firm is now requiring 100,000 USD minimum, well beyond proposed CME requirements, many times above the actual contract.
“It’s not the little people,” he told Buzzfeed. Such contracts will be of interest to what the industry refers to as whales, large investors: hedge funds, institutions, etc.
What do you think about bitcoin futures being shorted in the coming CME market? Let us in the comments below.
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