From $10M to Zero in 10 Days: ETH Smart Contract FairWin Is Empty

Ethereum smart contract FairWin, recently accused of being the fastest-growing Ponzi scheme on Ethereum, was emptied.

Ethereum (ETH) smart contract FairWin, recently accused of being the fastest-growing Ponzi scheme on Ethereum, was emptied.

According to Etherscan’s data, at press time FairWin’s balance is exactly zero ETH. Yet, the smart contract held over 49,518 ETH just a few days ago on Sept. 26. FairWin’s value also topped at over $10 million on Sept. 21.

The fastest-growing Ponzi scheme on Ethereum

It is unclear whether the contract was drained by its owner, some malicious actors or concerned users, but the multitude of withdrawing addresses suggests the latter.

As Cointelegraph reported on Sept. 27, multiple crypto social media users have been analyzing what they believed to be the fastest-growing Ponzi scheme on Ethereum. Blockchain developer Philippe Castonguay warned at that time:

“The http://FairWin.me Ponzi Scheme contains critical vulnerabilities that put all funds at risk. Spread knowledge (especially in Asia) Users need to withdraw their funds and stop interacting with the contract ASAP.”

Later Castonguay explained that he discovered three main vulnerabilities, "one allowing the owner/admin of the contracts to totally drain, one where the admin can prevent users from withdrawing forever and one where anyone, not just the owner, can steal new deposits."

Mainly shared on Chinese social media and blogs

A detailed allegation from Reddit contributor chutiyabehenchod on Sept. 20 outlined that FairWin was purportedly mainly shared on Chinese social media and blogs, and worked as a 5-day period high yield investment program. Users allegedly deposited 1–15 ETH and got a percentage return of 0.5-1% after five days. The post continued:

“It's decentralized, however only 70% of the amounts deposited actually go back to pay the commissions of the older deposits. [...] 30% is always taken! Once the account is dried out those that entered last will be punished by losing absolutely everything... likely some of them will be reinvestments. Currently with 40k ETH, 12k are already for the unknown scammers.”

The post concludes with the claim that FairWin could “be one of the biggest scams ever seen in Ethereum.”

Recently, Cointelegraph also reported that executives at the Bank of Ireland could join a trial in the case against Mark Scott, who allegedly helped launder nearly $400 million via cryptocurrency scam OneCoin.

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Court Orders Purported Crypto Company Longfin to Pay $6.7M Penalty

The U.S. District Court for the Southern District of New York ordered cryptocurrency company Longfin to pay a total of $6.7 million in penalties.

The United States District Court for the Southern District of New York has ordered purported cryptocurrency company Longfin to pay a total of $6,755,848 million in penalties.

Falsely obtained qualification for Regulation A+ offering

On Sept. 30, the Securities and Exchange Commission (SEC) announced that a New York federal court entered a default ruling against the fintech company for “fraudulent public offering and falsifying revenue from sham commodities transactions.”

According to the SEC, Longfin and its CEO Venkata S. Meenavalli falsely obtained qualification for a Regulation A+ offering by claiming that the blockchain-powered firm was operating within the U.S. However, all of the company's operations, assets and management were in fact outside of the country.

The SEC had filed its complaint in the federal district court, saying that Longfin fabricated close to 90% of its revenue and sold over 400,000 shares of Longfin to insiders and affiliates, and “misrepresented the number of qualifying shareholders and shares sold in the offering to meet Nasdaq listing requirements.”

The SEC has an ongoing action against Meenavalli, as does the U.S. Attorney's Office for the District of New Jersey in a related criminal action.

SEC reaches a $24 million settlement with Block.one 

The SEC made an additional announcement on Sept. 30, as it reached a settlement with Block.one to pay $24 million in penalties for conducting an unregistered initial coin offering (ICO). 

The SEC claimed that Block.one raised the equivalent of billions of dollars but failed to register its ICO as a securities offering in agreement with the U.S. federal securities laws and that the EOS parent firm did not qualify for or seek an exemption from the registration requirements.

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Swiss Digital Exchange Plans ‘Initial Digital Offering’ in 2020: Report

Swiss Digital Exchange, a crypto trading platform by SIX Swiss Exchange, reportedly plans to launch its initial digital offering in 2020.

Swiss Digital Exchange (SDX), a digital asset trading platform by Switzerland’s principal SIX Swiss Exchange, will reportedly launch its initial digital offering (IDO) in 2020.

SDX security token

The not-yet-launched SDX has reportedly set up a global consortium of financial institutions to back its IDO in the middle of 2020, Coindesk reports on Sept. 30.

Thomas Kindler, who took over as SDX CEO on Sept. 1, elaborated that the consortium comprises a group of investors such as banks and market infrastructure providers intending to legitimize the technology and raise capital.

According to the report, the IDO would be similar to a traditional initial public offering, except that the shares will be issued in the form of security tokens on SDX.

Consortium members not revealed

While not specifying the consortium members or the amount expected to raise, Kindler stated that SDX plans to have one large-scale level of investment featuring four or five big investors and another level with 10 smaller potential investors, the report notes.

The firm is reportedly planning to introduce its own SDX security token, shifting from its original plan to first tokenize traditional banking assets to other assets such as real estate. The SDX token will be issued on a blockchain that is based on the enterprise version of R3’s Corda technology.

The news comes a week after SIX postponed the launch of SDX for Q4 2020 after previously projecting to roll out the platform in mid-2019. However, on Sept. 23, SIX launched a prototype of its digital exchange and the central securities depository (CSD), noting that the objective of the prototype is to showcase the future of financial markets to the community as well as to demonstrate the integration of CSD with a central order-book stock exchange model.

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Aragon Expects Ethereum’s Istanbul Hard Fork to Break 680 Smart Contracts

Ethereum’s Istanbul hard fork is expected to break 680 smart contracts on the decentralized management platform Aragon, after its launch earlier today.

The Ethereum network’s Istanbul hard fork is expected to break 680 smart contracts on the decentralized management platform Aragon.

Jorge Izquierdo, CTO at Aragon One, said that the upcoming upgrade will result in the breaking of roughly 680 smart contracts, industry-focused media outlet Coindesk reported on Sept. 30. 

Izquierdo explained that the impetus behind the update is to further ensure frictionless functioning of decentralized autonomous organizations (DAOs) built on the Aragon platform and address affected smart contracts.

Izquierdo added that DAOs will no longer be able to receive Ether (ETH) from one another and continued: “The issue we’re going to have hasn’t been deemed important enough for this hard fork not to happen, which from our point of view is unfortunate [but] it’s a hard balance we understand.”

Ethereum’s system-wide activation of the Istanbul hard fork arrived early today and caused a split of the Ropsten testnet. The community manager of the Ethereum Foundation, Hudson Jameson tweeted that there are miners still relying on the old Ropsten testnet, while others are already mining on the new one.

Wei Tang, a core developer at Parity, a blockchain infrastructure company that runs the core of the Ethereum network, previously cited concerns pertaining to gas issues, cautioning that it would be best to resolve them before implementing a hard fork.

According to Wei, it’s preferable to fix these gas issues before launching a mainnet hard fork, since it will be more complicated to change course once the fork has already occurred. This, in turn, he argued, may actually delay the mainnet’s launch even more.

In August, Ethereum co-founder Vitalik Buterin said that the Ethereum blockchain was almost full, noting that scalability was still a big bottleneck. As for how to improve the situation, Buterin said that networks need to evolve away from the idea that every computer is required to verify each and every transaction to a model whereby a computer on average verifies only a small portion of the transactions on the blockchain.

via cointelgraph.com

SEC Reaches $24 Million Settlement With EOS Parent Firm Block.one

The U.S. Securities and Exchange Commission has settled with Block.one for $24 million for conducting an unregistered ICO.

The United States Securities and Exchange Commission (SEC) has reached a settlement with Block.one to pay $24 million in penalties for conducting an unregistered initial coin offering (ICO).

On Sept. 30, the SEC announced in a press release that it has settled the charges against the firm behind the EOS network and corresponding token in the form of a civil monetary penalty. Block.one settled the charges without admitting or denying the findings.

According to the press release, Block.one’s ICO of 900 million tokens “began shortly before the SEC released the DAO Report of Investigation and continued for nearly a year after the report’s publication.”

Block.one raised the equivalent of billions of dollars but failed to register its ICO as a securities offering in agreement with the U.S. federal securities laws, “nor did it qualify for or seek an exemption from the registration requirements,” the SEC states. Co-director of the SEC’s Division of Enforcement Stephanie Avakian said:

“A number of U.S. investors participated in Block.one’s ICO. Companies that offer or sell securities to U.S. investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer.”

Steven Peikin, co-director of the SEC’s Division of Enforcement added that Block.one did not provide ICO investors with the needed information, saying: 

“The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”

The $24 million fine is not expected to make a significant dent, as it only represents a small portion of the $4 billion initial raise.

Block.one opens headquarters in Washington DC

Cointelegraph reported recently that Block.one opened its fourth global site located in the Washington, D.C. metropolitan region. The office is said to create 170 high-skilled jobs over a period of three years. Block.one CEO Brendan Blumer said at the time:

“Its proximity to the nation’s capital positions us close to the policy innovation around digital assets and distributed ledger technology in the U.S. This expansion opens up important new avenues of talent expansions for us at a time when there is rapidly increasing demand for blockchain-based technologies.”

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US Department of Homeland Security Awards $143K Grant to Blockchain Firm

The U.S. Department of Homeland Security has awarded a $143,000 contract to a Vienna-based firm to develop blockchain security solutions.

The United States Department of Homeland Security (DHS) has awarded $143,478 to Vienna-based Danube Tech to develop blockchain security solutions.

Silicon Valley Innovation Program

On Sept. 26, the United States DHS Science and Technology Directorate (S&T) announced in a press release that Danube Tech was awarded a contract to assist the department in its ongoing fight against forgery and the counterfeiting of certificates and licenses. 

The news release states that services such as U.S. Customs and Border Protection (CBP), the Transportation Security Administration, and Citizenship and Immigration Services can all benefit from blockchain-based security solutions, adding:

“Current issuance processes are often paper-based, do not facilitate data exchange, and use among systems and could be susceptible to loss, destruction, forgery and counterfeiting. S&T is exploring the application of blockchain and DLT to issue credentials digitally to enhance security, ensure interoperability, and prevent forgery and counterfeiting.”

The award is funded through S&T’s Silicon Valley Innovation Program (SVIP) which is a program that funds private sector partners to advance security solutions for DHS. Firms that participate in SVIP can be awarded up to $800,000 to develop and adapt commercial technologies for homeland security use cases.

US Customs and Border Protection trials blockchain

Cointelegraph reported in August that the CBP advisory committee ran tests of its blockchain-based “Intellectual Property Rights Proof of Concept,” which is an attempt to run shipments via blockchain, relying on pre-existing licensor and sublicensee relationships.

The CBP already ran a test for a blockchain-based shipping project in August 2018, which was a combination of CBP’s legacy application and a blockchain-based platform developed by DHS.

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Crypto Markets Showing Signs of Recovery, Bitcoin Hovers Around $8,200

The cryptocurrency markets are showing signs of recovery, with Bitcoin’s price hovering around the $8,200 mark.

Monday, Sept. 30 — Bitcoin (BTC), together with most altcoins, has been trading relatively flat in the last 72 hours, but the overall crypto market seems to be ready to turn around.

Cryptocurrency market daily overview. Source: Coin360

Bitcoin has not yet been able to recover from Tuesday’s double-digit losses, but the coin is showing signs that a recovery phase might be on the horizon.

While billionaire technology investor Mark Cuban said that he would be happier owning bananas than Bitcoin, the most popular crypto coin has been trading around the $8,000 price mark for most of the day. Since hitting an intraday low of $7,835, BTC has been slowly crawling upwards to its current price point of $8,258, up by 2.62% in the last 24 hours.

Cuban claims that Bitcoin is too complicated for the average person, and that the world’s most known cryptocurrency, often called digital gold, is actually really like gold:

“I say it’s like gold. Gold is a religion: people who are really into gold — they’ll tell you that there’s a bad depression and things go to hell in a handbasket, if you own gold then you’ll be okay. No, you won’t! You carry around a gold bar — someone’s gonna hit your ass, knock you out and steal your gold bar and it’s gonna happen again and again and again. I’d rather have bananas, I can eat bananas. Crypto… Not so much.”

Bitcoin 7-day price chart. Source: Coin360

Ether (ETH) in the meanwhile, has been showing an impressive gain of nearly 5% on the day. The altcoin hit its intraday low in sync with BTC and has since found its way to $177 per coin at press time.

Ether 7-day price chart. Source: Coin360

Ripple’s XRP is showing a gain of almost 7% during the last 24 hours and is trading at around $0.256 at press time. Following today’s trend of the cryptocurrency markets, XRP might be on its way to recover from its weekly loss of 12%.

XRP’s 7-day price chart. Source: Coin360

Altcoins showing much-needed recovery

Altcoins have been reeling since Tuesday’s double-digit losses, but seemingly entered another consolidation phase during the last three days. However, today’s prices are showing green candlesticks across the board.

According to data from Coin360, the top-20 coins are all reporting gains, with Tron (TRX) taking the lead with a more than 7% increase on the day. Bitcoin SV (BSV) is also showing gains around 6% at press time.

The overall cryptocurrency market cap increased from $212 billion to $215 billion, with Bitcoin making up 68.4% of the total.

Keep track of top crypto markets in real time here

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Are Trading Vehicles Dragging Crypto Into Maturity?

Crypto derivatives have significant implications on the young market, but are they positive, negative or too difficult to predict?

Just a decade ago, speculating on cryptocurrency prices meant figuring out a way to buy Bitcoin (BTC) and add it to your blockchain wallet. This was a feat that was worthy of bragging rights: In 2010, there were few exchanges, low liquidity and barely any infrastructure, meaning that crypto was less a financial instrument and more a digital novelty. 

Larger centralized exchanges unlocked the idea that Bitcoin and other cryptocurrencies have relative value and made it possible to speculate on their value versus fiat currency. Since then, a slow proliferation of a variety of crypto derivatives has transpired. This has given traders many new ways to mobilize their capital in the young ecosystem.

The newness of cryptocurrency and its unique decentralized characteristics mean that new financial instruments and their terms are introduced gradually to the ecosystem, and with effects that are hard to predict. It’s actually an excellent experiment in how money markets mature and change when ideas considered old by the fiat market are initiated. 

There are many instruments for enterprise Bitcoin traders that now exist, raising important fundamental questions while giving us a glimpse of where the crypto market as a whole may end up.

Theoretical side to derivatives

A derivative is a financial instrument that can be used by traders to speculate in different ways on the underlying asset. It is literally “derived” from something else. In the case of Bitcoin — a scarce asset that can only be minted by mining blocks to support the blockchain — the notion that one can go long on Bitcoin without directly purchasing or mining has significant implications. 

Not only is much of Bitcoin’s value derived from scarcity due to its mining difficulty but to own BTC means you’d have control over its associated private key. If derivative traders are trading Bitcoin they don’t own, exposure is possible without buying physical BTC. In this case, is the fundamental value of blockchain being mortgaged for the promise of easier speculation?

However, some of the most mature market places, such as equity markets, maintain their integrity despite an enormous and more diverse derivatives market. In fact, the proliferation and maturity of derivatives may even be what’s holding back crypto from achieving the status and market capitalization it deserves. The CEO and founder of a BTC options and futures exchange, John Jansen, told Cointelegraph:

"In the past, traders have been afraid of the impact of incumbent markets launching BTC derivatives. While I can understand where the fear is coming from, I don't agree with it. I truly believe in the benefits of derivatives for the entire ecosystem and that they are essential for institutional adoption. With liquidity on the rise, more 'adoption doors' are finally opening."

What form does adoption take for derivatives?

There are many emerging cryptocurrency derivatives, some launched by well-known financial firms in the fiat money market and some new ones with new value-added blockchain elements. These come in many shapes and sizes and allow various strategies to be pursued in the crypto market. For example, the first derivative milestone for Bitcoin was the launch of futures contracts on the Chicago Board Options Exchange in late 2017. 

The XBT instrument, as well as the other futures offering from CME, are cash-settled contracts that use BTC prices from other sources. This means they’re effectively separate from the blockchain and Bitcoin itself, and so supply of BTC remains untouched regardless of demand for XBT futures.

Related: First Week of Bakkt: Slow Start Unlikely to Dampen Long-Term Prospects

Bakkt is a new exchange venture from Intercontinental Exchange — or, ICE — that recently launched to offer physically settled Bitcoin futures in traditional markets. What this means is that the first brick in the path to institutional investment in BTC has been laid. The pension funds and venture capital firms already investing in the underlying asset can hedge their positions — and instead of realizing gains or losses in cash, the result of their positions simply affects a Bitcoin balance. This means these are the first futures to stimulate the supply and demand equation inherent in Bitcoin’s price momentum.

Options are a newer type of instrument yet to be deployed by big exchanges like CME, but they’re planned for the first quarter of 2020, pending regulatory review. Seed CX has recently announced its intention to take it a step further, with physically settled swap contracts on BTC futures, adding leverage into the picture. 

This will give people who buy futures contracts a way to buy or sell them at specifically executed price points and on margin, expanding the ways in which individuals and institutions manage their capital when crypto is involved.

The future of decentralized derivatives

Half the battle for new derivatives and crypto instruments has been tied to figuring out how to loop in the traditional fiat economy, and it’s a testament to this struggle that it took Bakkt until 2019 to create the first derivative to link these two worlds. However, now that there are enough infrastructure and custody solutions available, as well as transparency about tax liability, institutions have begun dabbling in crypto in larger numbers. 

Related: 10 Global Enterprises Looking to Issue Their Own Cryptos

Soon, new derivative instruments allowing exchanges to settle in physical BTC will be available to the wider public using special products like exchange-traded notes (ETNs). The CEO of asset management firm Iconic Holding, Patrick Lowry, told Cointelegraph:

“An ETN will be the first genuine exchange traded product with crypto as the underlying that we will see in regulated marketplaces. It’s the perfect investment product to facilitate the adoption of crypto as an asset class with institutions as it tracks the performance of Bitcoin or another crypto one-to-one, provides superior liquidity relative to the exchange traded certificates available today, and provides many institutional managers an International Securities Identification Number (ISIN) so they may legally diversify their portfolio into crypto.”

A maturing market and a mysterious future

As liquidity due to derivatives increases, economists have estimated that crypto markets will be less volatile, providing a more enticing lure for funds that wish to expose their capital to inclusive growth strategies. 

At the end of the day, derivatives are meant to control risk as much as they’re good at encouraging speculation, and their comfortability and fast growth in crypto is a characteristic that undoubtedly resembles development. It’s easy to say that incumbent fiat ideas have changed crypto. 

Now, as new derivatives like the upcoming OKEx margin futures for Tether (USDT) encroach on similar instruments in the forex market, questions arise about how the small upstart market will affect the old, established one. If we know anything for certain, however, it’s that with crypto, we must learn as we go.

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Early Arrival of Ethereum’s Istanbul Hard Fork Causes Testnet Split

Ethereum’s system-wide activation of the Istanbul hard fork has arrived two days early and caused a split of the Ropsten testnet.

Ethereum’s system-wide activation of the Istanbul hard fork has arrived two days early and caused a split of the Ropsten testnet.

Huge miner pushing the non-forked chain

On Sept. 30, the community manager of the Ethereum Foundation, Hudson Jameson took to Twitter to explain that there are miners mining on the old Ropsten testnet, while others are already mining on the new one.

Cointelegraph previously reported that Jameson said that the testnet launch of the hard fork was scheduled to take place at the beginning of October. He added:

“For anyone listening in who doesn’t know how this works, we pick a block number that we estimate to be around the 2nd of October. [...] However, that might be one or two days behind or forward from that date based on how fast blocks are produced between now and then.”

However, blockchains are complex systems and their updates are difficult to predict precisely. Istanbul arrived two days earlier than expected, which was due to unusually fast block confirmation times, according to Jameson. 

Most of the miners on the Ropsten testnet network were unaware that Istanbul had arrived, which resulted in a split of the testnet between those mining on the newly upgraded chain and those continuing to mine on the old chain.

Team lead at the Ethereum Foundation Péter Szilágyi stated on Twitter that “the Ropsten Ethereum testnet Istanbul forking is a bit unstable due to a huge miner pushing the non-forked chain.”

Jameson further pointed out that this is what testnets are for and that the Ropsten testnet will be unstable until “this all plays out.” It is unclear if this “hiccup” will have any effect on the Istanbul hard fork activation.

Ethereum blockchain almost full?

Cointelegraph previously reported that Ethereum co-founder Vitalik Buterin stated that the Ethereum blockchain is almost full, which seems to keep potential Ethereum contributors from joining. He added:

“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us.”

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Price Analysis 30/09: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, LEO

Most major cryptocurrencies have stopped falling. They can start a pullback, which will offer buying opportunities for aggressive traders.

Various cryptocurrency operators have joined hands to launch a rating system that will define how close a digital asset resembles a security. On a scale of one to five, one will be awarded to cryptocurrencies that are  least characteristic of a security, whereas five will have the most similarities to a security. This rating system will provide clarity to asset managers who have stayed away due to the uncertain legal status of the cryptocurrencies.

When sentiment turns bearish, many negative voices can be heard. Mark Cuban has reiterated his negative stance on Bitcoin (BTC) and has said that he would rather hold bananas. While it is easy to follow the herd and turn negative, we believe that the current fall is showing signs that it might be a bear trap before the trend turns up once again.

Another important point to note is that the current pullback is being led by altcoins as Bitcoin’s dominance has dipped to 67.5%. This shows that bulls are finding a few altcoins attractive after the recent fall. We also find a few aggressive plays, which are counter-trend trades. Let’s consult the charts.

BTC/USD

Bitcoin again found buying support close to $7,700. This is a positive sign as it shows that bulls are keen to defend the critical support zone of $7,451.63–$7,337.78. The RSI continues to be in oversold territory, which suggests that a relief rally is likely. Any attempt to pull back is likely to face resistance at the moving averages, which are sloping down. The next dip toward $7,451.63 will confirm whether the bottom is in place.

Aggressive traders can keep a stop loss of $7,700. The first target objective is a rally to $9,080. A breakout of the moving averages will be a positive sign. The trend will turn positive on a breakout of the downtrend line.

Conversely, if the bears sink the BTC/USD pair below the $7,451.63–$7,337.78 zone, the sentiment will sour and will delay the next leg of the up move. However, we give it a low probability of occurring.

ETH/USD

Ether (ETH) has been trading above the critical support of $163.755 for the past three days. This is a positive sign as it shows buying at current levels. The positive divergence on the RSI also shows strength.

The pair has broken out of the immediate resistance of $176.445, which is a positive sign. It might face some resistance at the moving averages, above which, a rally to $203.708 is possible. Therefore, aggressive traders can buy at $178 and keep a stop loss of $160.

Contrary to our assumption, if the ETH/USD pair turns down from the moving averages and plunges below the $150–$163.755 support zone, it can correct to $122. 

XRP/USD

XRP has risen sharply above $0.24508. This is a positive sign as it shows buying at lower levels and indicates that the recent breakdown was a bear trap. The pullback might face some resistance at the moving averages and above it at $0.27795.

The traders can watch the next dip and buy if it does not break below $0.24508. That will signal a bottom formation. If the bulls can push the price above $0.27795, the XRP/USD pair can quickly rally to $0.34229. Conversely, if the pair turns down from current levels and plunges below $0.22, the downtrend will resume. The next support on the downside is at $0.19. However, we give it a low probability of occurring. 

BCH/USD

Bitcoin Cash (BCH) is trying to form a bottom above $220. Usually, after a breakdown from a critical level, that level is retested. In this case, a rally to the neckline of the head-and-shoulders pattern is probable.

If the bulls can push the price above the neckline and sustain it for three days, it will indicate that the lower levels are attracting buying. A trend change will be signaled after the BCH/USD pair scales above $360.

On the other hand, if the bears defend the overhead resistance and the price reverses direction from the neckline, a retest of $203.36 is possible. We will wait for the buyers to make a comeback before proposing a trade in it.

LTC/USD

Litecoin (LTC) is attempting a pullback, which is likely to face resistance at $62.0764. Both moving averages are sloping down and the RSI is close to the oversold zone, which shows that the trend is down and relief rallies will be sold into. The cryptocurrency will resume its downtrend if it turns from the downtrend line and plummets below $50.

The first sign of strength will be when the bulls sustain the price above $62.0764 for three days. That will suggest buying at lower levels. A breakout of the downtrend line will indicate a probable change in trend. The LTC/USD pair will pick up momentum on a breakout of $80.2731. We will recommend a long position on a breakout and close (UTC time) above the downtrend line.

EOS/USD

EOS is attempting a pullback, which is likely to face resistance at $3.1534. If the bulls can push the price above this resistance, it will be a positive sign as it will indicate that the current breakdown was a bear trap.

The EOS/USD pair will indicate a possible turnaround if the bulls can propel it above the downtrend line. It can thereafter move up to $4.24 and above it to $4.8719. The momentum will pick up on a break above $4.8719. We will recommend a long position on a breakout above the downtrend line. 

Conversely, if the pair turns down, either from $3.1534 or from the downtrend line, the bears will attempt to resume the downmove. A break below $2.4001 will be a negative sign.

BNB/USD

Binance Coin (BNB) has been trading in a tight range for the past three days. The bulls are trying to form a bottom close to $14.2555. A rise above $16.50 can carry the price to $18.30. The 20-day EMA is also located just above this level, hence, it is likely to act as a stiff resistance. With both moving averages sloping down and RSI in oversold territory, the advantage is clearly with the bears.

If the BNB/USD pair turns down from current levels and plummets below $14.255, it will resume its downtrend and can drop to the support line of the descending channel. The pair will turn positive after the price scales above the descending channel. Until then, every minor rally will be sold into. We will wait for a new buy setup to form before recommending a trade in it.

BSV/USD

Bitcoin SV (BSV) has been trading close to $85 for the past five days. The intraday range has shrunk, which shows that both the bulls and bears are waiting for a directional trend to form. If the price rises above $90, a pullback to $107 will be in the cards. We expect a stiff resistance at $107.

If the bears sink the BSV/USD pair below $78.506, a retest of $66.666 will be in the cards. The downsloping moving averages and the RSI in oversold zone show that bears have the upper hand. We will wait for a large range day to indicate the start of a pullback to the upside before suggesting a trade in it. 

XLM/USD

The bulls are again attempting to push Stellar (XLM) above the 20-day EMA. We like the way the small range days have resolved to the upside and it is being supported by a positive divergence on the RSI. If the price can rise above the 50-day SMA, it can move up to $0.088709, with a minor resistance at $0.072545. Aggressive traders can buy above the 50-day SMA and keep a stop loss of $0.051. 

Our short-term bullish view will be negated if the XLM/USD pair reverses direction from the 20-day EMA or the 50-day SMA and plummets to the recent lows of $0.051014. A breakdown to new lows will resume the downtrend. 

LEO/USD

UNUS SED LEO (LEO) has broken down of the minor support at $1.0467. It can now drop to the next support at $1.0075. With both moving averages sloping down and the RSI in the negative zone, advantage is with the bears.

However, we anticipate buyers to step in and defend the lows at $1.0075. The bounce off it is likely to face resistance at the support-turned-resistance of $1.0467. But if the bulls can push the price above it and the moving averages, it is likely to pick up momentum.

Contrary to our assumption, if the bears sink the LEO/USD pair below the support of $1.0075, it can lead to long liquidation. The next support on the downside is at $0.80. We will wait for the pair to form a reversal pattern before proposing a trade in it.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Bitcoin Price Bounces Back to $8.4K but Bearish Bias Remains

Bitcoin bounces back from the drop to $7,800 but bulls are unsure whether the crypto market bottom is in?

Bitcoin (BTC) price has had a volatile start to the week. Asia kicked off the trading week with a 4% selloff that brought Bitcoin price from $8,050 to $7,700. The ball was then passed to the Europeans who started a rally which continued through to the New York trading session. By the end of the day, Bitcoin had rallied 8% from the bottom to highs of $8,325, which was near a 3.5% gain for the day. 

Altcoins have also been moving higher on the same basis, with Ethereum and XRP being notable gainers of 6% and 9% respectively. 

The crypto market has largely been following the risk-on price action today, with traditional markets moving higher and commodities moving lower. We will take a closer look at the key timeframes to try and examine if Bitcoin is nearing a bottom.  

Daily Crypto Market Performance. Source. Coin360.com

Weekly Bitcoin price chart

BTC/USD Weekly Chart. Source: TradingView.com

Bitcoin closed the week decisively bearish, breaking and closing below the 20-week moving average (WMA) for the first time since breaking earlier in March. This was of particular note given that this is something that did not occur in 2016/2017 and is typically seen as being a very bearish indicator on the weekly chart. 

Despite this, Bitcoin has returned towards the weekly support at $7,600 and is in the proximity of the 61.8% retracement of the 2019 run-up. This is also a key area for Bitcoin and should act as an intermediate support. At the very least it is an ‘auto-buy’ zone for many investors.

It remains to be seen what the real market sentiment is. Bears will see the 20 WMA as lost, and the descending triangle breakdown could be interpreted as a sell the rally scenario. Meanwhile, the bulls will see the retracement into support as being a buy the dip opportunity, so it is unsurprising that Bitcoin is experiencing volatility. 

Daily Bitcoin price chart

BTC USD Daily Chart. Source: TradingView

A closer look at the daily chart reveals that today’s drive lower was bought up very swiftly demonstrating a swing failure pattern (SFP) which occurs when new lows are made but the candle closes higher than the open. This is typically a bullish indicator and once the daily closes and confirms this to be the case, it may see some continuation as a result.

Bitcoin has been stopped dead at the 200 daily moving average (DMA) which was lost last week and now acts as resistance. If the bulls can break this key level and find support it will go some way to confirming that the bulls are back in business. 

Despite the bullish start to the week, it’s important to note that the bulls must regain the 200-DMA quickly.

Looking at the order book can be of some use as it helps to determine if there is any pent up demand. It can be somewhat misleading as large traders are unlikely to ‘show their hand’, but generally speaking it is useful to see if there is growing demand versus supply. 

Combined Bitcoin Order book. Source: data.bitcoinity.org

Looking at the books, there is clear buying interest at Coinbase, Bitstamp, and Kraken, all of which are notable fiat onramps. Market participants rarely get what they desire and with the narrative of many being that they are looking to buy the weekly support or the 61.8% retracement in the low $7,200s, it could be that the opportunity simply gets front run. Time will prove to be telling this week, with the initial objective for the bulls being to regain the 200-DMA.

BTC USD Daily Chart. Source: TradingView 

Bearish scenario

While Bitcoin is off to a good start to the week, there is still the possibility that the 61.8% retracement fails and sellers pile on in significant size. There is also some confluence at the 78.6% retracement at $5,400 which aligns with the descending triangle breakdown measured move and the next high volume node for 2019 which is also in the vicinity of the 200- WMA.

As it currently stands, many investors refuse to believe that these levels could be revisited and it would be seen as unprecedented in a Bitcoin bull market. With that said, it’s still worth bearing in mind.

4 Hour Chart

BTC USD Daily Chart. Source: TradingView 

The 4-hour chart illustrates that Bitcoin rebounded off lower lows into the 200-DMA and off the back of a bullish RSI divergence. A bullish divergence occurs when price makes lower lows but the oscillator makes higher lows. 

Today’s rebound is coupled with a low timeframe W-Bottom pattern, which nicely coincided with the 200-DMA resistance. If this is broken, the bulls will target a move higher towards $9,000 which will be a critical level for the bulls to break. 

The prior multi-month support in the $9,000s will be a tedious task for the bulls to overcome should they make it to those levels. A rejection would most likely set the tone for a move to retest the $8,000 level once more. 

Looking forward

Overall, the Bitcoin market is in a state of uncertainty. There is clearly buying interest in the low $7,000s, but the weekly timeframe illustrates a critical technical breakdown. It is likely that there will be significant volatility ahead given the situation. 

Bears will be looking to aggressively short bounces and bulls are appearing to be patiently waiting to buy the dip.  

If the bullish buying is to be exhausted and absorbed by the bears, there will likely be continued downside. As the block reward halving looms, miners might begin sweating as the higher cost of production could result in lower realizable marginal revenue. 

What is certain is that the next couple of weeks will be decisive for the remainder of the year and possibly longer.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

via cointelgraph.com

Bittrex Announces New Trading Platform Based in Liechtenstein

Cryptocurrency trading platform Bittrex has announced Bittrex Global, a new platform headquartered in Liechtenstein.

Cryptocurrency trading platform Bittrex has announced Bittrex Global, a new platform headquartered in Liechtenstein.

Per a press release shared with Cointelegraph on Sept. 30, Bittrex is expecting to roll out Bittrex Global at the end of October in the city of Vaduz, Liechtenstein. A fundamental reason for Bittrex’s choice to set up a new trading platform in Liechtenstein is the country’s regulatory clarity toward digital currencies and blockchain technology.

New products in accordance with European Union law

Bittrex Global is planning to develop new features and products, including customer reward programs, credit card interoperability, private token sales under EU law and a mobile app for trading cryptocurrencies. Following its launch, Bittrex Global also intends to register under the Transaction Systems Based on the Trustworthy Technologies Act, also known as the Blockchain Act.

As part of the platform’s launch, Bittrex Global made new appointments, with Kiran Raj as the first chief executive officer and Stephen Stonberg as chief operating officer. Prior to joining Bittrex Global, Raj was a partner at Los Angeles-based law firm O’Melveny & Myers LLP and served as the Deputy General Counsel of the U.S. Department of Homeland Security. Stonberg has a 25-year career in financial markets.

Liechtenstein’s approach to regulating crypto and blockchain

The government of Liechtenstein passed the Blockchain Act this spring. Alongside stringent rules on Anti-Money Laundering and Know Your Customer requirements, the act essentially provides a clear legal basis for the ownership, transfer and safe storage of security tokens.

Following that, the government passed the Token and VT Service Providers Act, which aims to improve investor protection, combat money laundering and establish clarity. The government expressed confidence that the new regulation will create an adequate regulatory environment that counters the risks, provides regulatory clarity and facilitates the development of the token economy.

via cointelgraph.com

Launch of Binance US Can Have Far-Reaching Effects on Crypto Market

Will Binance’s entry into the U.S. market pave the way for other prominent exchanges as well?

From the outside looking in, the United States seems to present a host of amazing financial opportunities. However, when it comes to launching cryptocurrency exchanges or altcoin trading platforms, these possibilities start to dwindle and fade quite rapidly. 

In this regard, over the past few years, the U.S. regulatory landscape has seemed so hostile toward the crypto industry that a number of prominent exchange operators have preferred not to serve U.S. citizens at all — a case in point being Bancor, a decentralized liquidity network, that recently decided to block American citizens from using its website to convert its tokens.

Related: US a Crypto Exchange Scarecrow — What Needs to Change?

All of these negative developments have their roots traced back to America’s lack of clear regulations — especially when it comes to securities legislation. However, despite all these hurdles, Binance recently announced the launch of its U.S. trading desk, a decision that has been welcomed by many from within the global crypto community. Speaking on his company’s recent launch, CEO Changpeng Zhao (better known as CZ) was quoted as saying:

“The U.S. has always been a very important market; globally it's one of the biggest markets for any business, including in cryptocurrency. We want to be fully compliant.”

With Binance finally making its long-awaited plunge into the U.S. market, the question that now begs an answer is: “Will other established ventures will now follow?” On the subject, Cointelegraph reached out to Dmitriy Berenzon, research partner at Zenith Ventures, a multistrategy venture fund for blockchain and cryptocurrency. 

Berenzon believes that Binance’s entry into the market will open new doors for other similar firms for the simple reason that the U.S. market is too large for any crypto exchange to ignore. Berenzon pointed out that almost 30% of the world’s spot Bitcoin volume takes place on U.S.-based exchanges, so it’s more of a question of which exchanges have the resources to meet the country’s regulatory requirements than anything else. He further added:

“Exchanges and crypto firms have left the U.S. primarily due to the lack of regulatory clarity. While regulators are taking it slow with consumer protection in mind, they are continuing to lay the groundwork with clearer rules and expectations. I think it’s a question of “when” rather than “if” around regulatory clarity for this new asset class, and it's important for firms and exchanges to continue proactively engaging with regulators to expedite the process.”

Lastly, the launch of Binance US is currently restricted to only 12 states (including New York, Texas and Florida) and it seems that it may take some time for the company to expand its operations geographically. However, just the initial launch in itself should provide other exchanges with the impetus needed to enter or re-enter the U.S. crypto market.

Are more exchanges set to enter American soil?

Even though America’s regulatory regime currently treats crypto assets more like commodities rather than currencies, the country’s finance market is too important to be ignored in the long run. 

Christophe de Courson, CEO of Olymp Capital, an asset management fund dedicated to blockchain and crypto, told Cointelegraph that even though a lot of exchanges have previously left (or encounter difficulties) with U.S. regulators — with many of them having to delist their digital offerings in the past — in the end, everyone realizes the immensity of what the U.S. has to offer, and thus they will all look to, in one way or another, re-enter the market in a compliant way.  

In the past CZ has been quite reluctant to subject his company to U.S. regulations, so if he has had a change of heart, it will most likely prompt a number of other operators to reconsider their positions. In this regard, Daniel P. Simon, the CEO and co-founder of Vested, an integrated communications firm, pointed out:

“Crypto may be a global phenomenon but no country can compete with the liquidity and demand from the U.S. market. There’s no doubt investors are keen to get into this space, but the digital currency industry still has a lot of growing up to do before these folks feel comfortable jumping in.”

Moreover, Marc Bhargava, President of Tagomi — a digital asset prime brokerage, which is integrated with nine different crypto exchanges and several different over-the-counter (OTC) desks in the U.S. and abroad — pointed out that large funds, index products, venture capitalists and family offices simply can't afford not to participate in U.S. markets, especially if they want to be viewed as global players. Bhargava further told Cointelegraph:

“I think the key is to map out a regulatory strategy early and plan for significant spend there in terms of hiring the right people and for the various applications and filings. One thing that would make the US more regulatory friendly would be an increased standardization of rules and regulations across the different states."

In order for other exchanges and trading platforms to make their way back into the U.S. market, they will have to emulate Binance’s way of doing things — which is basically registering as a money services business with the U.S. Financial Crimes Enforcement Network (FinCEN) and comply with all of the state laws in which the proposed venture will be operational. 

The core difficulty, however, for exchange operators that will continue to persist is how they will distinguish between cryptocurrencies or tokens that are securities under existing laws as opposed to those that are not. On the subject, Ken Witt and Marc Staines of Kutak Rock — a U.S. law firm — told Cointelegraph:

“Securities can’t be traded unless the exchange is registered with the SEC and FINRA as a securities exchange.  Although there has been some progress, because of the inaction of Congress and the SEC, U.S. law on this point is still based on a 1946 Supreme Court Case — SEC v. W. J. Howey Co.”

Has the U.S. regulatory landscape become more welcoming for crypto?

Another thing important to determine in this case is whether the U.S. government has made any significant changes to its existing legal framework surrounding cryptocurrencies. To the average person, the position of U.S. regulatory agencies seems to have stayed the same. 

However, one aspect that has definitely changed over time is the way in which exchanges are beginning to understand which cryptocurrencies they are able to trade under certain specific conditions.

Related: A Clear Path for Ethereum

To understand the situation, Cointelegraph approached Dixon Gardner, an attorney at Madison Law APC. He pointed out that the Securities and Exchange Commission (SEC) now requires private issuers of digital currencies to register their offerings as securities unless the issuer agrees to repurchase the assets at less than their original issuance price to avoid any possibility of a buyer realizing gains on his/her purchase. Gardner further added:

“See the SEC No Action Letter to Turnkey Jet, Inc. dated April 3, 2019. This decision will promote private issuers to issue a digital currency that functions more like money with a set value than a commodity and/or a security. This will support demand for existing digital currency (i.e. Bitcoin, EOS, Ethereum, Litecoin).”

Similarly, the SEC's approval of Blockstack and Props under Regulation A+, as well as FinCEN's guidance on crypto regulations, has set important precedents for token-based projects fundraising or operating in the U.S. However, in the long run, the U.S. government will have to create a conducive ecosystem at the federal level that offers clear guidance, as well as preempts all 50 states from creating a regulatory tower of babel, as Witt told Cointelegraph:

“The Token Taxonomy Act that has been introduced in the U.S. House of Representatives may be a good start, but it wont see any action in the near-to-mid term, now that Congress is consumed with impeachment”. 

Looking ahead

While the U.S. government and various other agencies have been moving forward to implement necessary rules and regulations to govern the crypto industry, it is also important to note that many pertinent changes have been slow to come by. 

On the subject, Mitesh Shah, CEO of Omnia Markets, told Cointelegraph that despite some early negative indications of clamping down on the industry, local authorities have yet to take any draconian steps, such as outright banning cryptocurrencies. Essentially, Shah believes that the go-slow, thoughtful approach of the SEC has been very positive for the industry — a sentiment that might not be shared by many from within the global crypto community. 

Additionally, there are still many people that believe that as time goes on, the SEC’s rules and regulations combined with the increase in protective protocols will allow for the industry to continue to grow and become a safe place for investments and fundraisers.

via cointelgraph.com

BitPay Undergoes Security and Confidentiality Certification Audit

Major cryptocurrency payment services provider BitPay has undergone a security and confidentiality compliance audit, the Service Organization Control 2.

Major cryptocurrency payment services provider BitPay has undergone a security and confidentiality compliance review, the Service Organization Control 2 (SOC 2).

Per a Sept. 30 press release, business advisory company Aprio confirmed BitPay’s compliance with the SOC 2, a tech audit and a requirement for technology companies that assures that customers’ personal data is kept secure and confidential.

Passing an SOC 2 review means that the firm has met criteria set by the American Institute of Certified Public Accountants in regard to confidentiality, security, privacy, processing integrity and availability. Commenting on the evaluation, Dan Schroeder, partner-in-charge of information assurance services at Aprio, said:

“After thorough review, we have confirmed the design and application of BitPay’s payment system meets the standards set forth in SOC 2 for protecting customer data. SOC 2 reporting is an industry best practice standard that evaluates a company’s controls relative to matters such as securing transactional and other sensitive customer data.”

In mid-August, BitPay introduced new security measures on its platform, where users are required to undergo a one-time verification process that requires the input of data such as their Social Security number or passport number, as well as a photo ID. The measures were met with some skepticism, given the resistance that many in the cryptocurrency community have toward seeing their personal data stored in centralized troves.

SOC 2-compliant crypto and blockchain projects

In January,  cryptocurrency exchange Gemini announced that it had completed an SOC 2 Type 1 certification.

In April, blockchain security firm BitGo, which last year gained an SOC 2 Type 1 certification from Deloitte, upped its procedures to conform to the Type 2 requirements of the same standard.

Last month, about 15 global jurisdictions, including the G7 countries, announced that they will reportedly develop a system for tracking crypto transactions to prevent illicit uses of cryptocurrencies by collecting and distributing personal data on individuals.

via cointelgraph.com

Attorneys Seek Bank of Ireland Execs’ Testimony Against OneCoin Scammer

Executives from the Bank of Ireland have been asked to testify in the case of a OneCoin crypto scam money launderer.

Executives at the Bank of Ireland (BOI) could join a trial in the case against Mark Scott, who allegedly helped launder nearly $400 million via cryptocurrency scam scheme OneCoin.

Four BOI witnesses to testify remotely

On Sept. 29, the government of the United States submitted a court motion seeking the testimony of four witnesses via closed-circuit television from a remote location in Ireland.

Initially set for Oct. 7, 2019, the trial has been recently adjourned to Nov. 4, 2019, while a final pretrial conference is scheduled for Oct. 28, as reported by fintech publication FinanceFeeds in early September.

All four witnesses are current or former employees of the BOI, where Scott had corporate bank accounts through which he has allegedly laundered over $300 million in OneCoin fraud proceeds. 

The list of witnesses includes Diane Sands, the head of BOI’s Anti-Money Laundering team, BOI foreign direct investment team member Deirdre Ceannt, former executive VP and relationship director Derek Collins, and Greg Begley, who is reportedly expected to provide evidence for Scott’s involvement in the fund transfers.

Fenero funds

Specifically, Scott is charged in a one-count indictment with conspiracy to commit money laundering. At the upcoming trial, the government will try to prove that, from 2016–2018, the defendant laundered almost $400 million in proceeds from OneCoin in a series of private equity funds in the British Virgin Islands with accounts at banks in the Cayman Islands, known as Fenero Funds. 

Six unserved defendants as of Sept. 3

Established in 2014, OneCoin is known as a major crypto exit scam along with famous crypto scam BitConnect. After a U.S. District Attorney charged OneCoin founders Konstantin Ignatov and his sister Ruja Ignatova in March 2019, a number of defendants in a lawsuit brought by OneCoin clients reportedly remained unserved as of Sept. 3. The six unserved defendants reportedly included OneCoin, Ignatova, Sebastian Greenwood, Irina Andreeva Dilinska, David Pike and Nicole Huesmann.

via cointelgraph.com

Bitcoin Magazine Week in Review

Bitcoin Magazine’s Week in Review brings you the most critical, interesting and popular news stories affecting Bitcoin this week.

With New Exchange Features, Wallets Aren’t Just for Storing Bitcoin Anymore 

The functionality of cryptocurrency wallets has been rather limited to straightforward asset storage, with a few branching out to asset transfers as well. However, a revolution is coming and it could transform how they operate completely. Developers are beginning to integrate exchange functionalities into hardware cryptocurrency wallets, essentially making it possible for inter-currency trading to be done.

Bakkt Opens Bitcoin Futures Trading, Clocks 29 Contracts in First 12 Hours

After months of speculation, cryptocurrency trading platform Bakkt launched its bitcoin futures contract offering this week.

The contracts essentially enable investors to place speculative bets on the price of bitcoin in the future, and while these aren’t the first such products to be launched, the distinction here is that the contracts offered by Bakkt will be physically delivered — allowing traders be paid in bitcoin upon the maturity of the contracts, as opposed to in cash equivalents.

With 4.3 Million Bitcoin Mining Machines, Hash Rate to Hit 120 E by 2020

The bitcoin mining industry has continued to log new milestones, with miners riding this year’s cryptocurrency price rally, growing mining difficulty and the imminent reward halving in 2020.

An industry report from China-based ASIC miner manufacturer Innosilicon has revealed that there are currently 4.3 million bitcoin mining machines on the network, with a demand for another 1.5 million yet to be filled. Once this market gap is filled, the report estimates that the total Bitcoin hash rate could increase by 75 exahashes by the end of the year. 

Sure, the Bitcoin Price Flash Crashed, but Hash Rate Is Fine

On Wednesday, reports surfaced that the Bitcoin hash rate dropped about 30 to 40 percent, following a price flash crash in bitcoin’s price from $10,000 to $8,300. 

Given the gravity of the fall in both metrics, speculations arose that the fall in price could be directly tied to the drop in the hash rate. Well, as it turned out, the hash rate is fine. The issue was a deviance in the block times that was being mined, nothing else.

“It was just regular random fluctuations in block times. The longer time period over which you estimate hash rate, the more accurate your estimate is likely to be … and vice versa,” Jameson Lopp, the cypherpunk CTO of Casa, explained on Twitter.

Bitmain to Play Matchmaker Between Mining Farms, Miners With New Service

Bitmain, the largest manufacturer of bitcoin mining equipment in the world, is continuing to take advantage of the surge in the mining space. This week, the company launched the World Digital Mining Map (WDMM), a service which will essentially connect miners and mining farms together.

With the WDMM, individual miners who need a cost-effective way to host their hardware can access a directory of mining farms close to them, complete with details of their efficiencies, their mining capacities and a host of other relevant specs. 

Bitcoin in Africa: Offering ‘New and Better Ways of Exchanging Value’

Appreciation for cryptocurrencies in Europe and the Americas is relatively high compared to attitudes in Africa. On that continent, knowledge about cryptocurrencies is sparse at best, but this can’t stop those Africans who are interested in cryptocurrencies from embracing them.

In an interview with Owenize Odia, the country manager for Luno Nigeria, Bitcoin Magazine unearthed details about the current push for cryptocurrency adoption in Africa and how effective it has been so far.

25,000 Points of Sale in France to Accept Bitcoin Payments

News broke this week that France could see up to 25,000 points of sale within the country accept bitcoin as a means of payment next year.

The initiative will see retail software provider Global P.O.S. leverage its wallet application EasyWallet and payment processor Easy2Pay to enable the payment option. Cosmetics giant Sephora, sports gear company Decathlon and others are expected to be part of the program, which will be launching in 2020.

The post Bitcoin Magazine Week in Review appeared first on Bitcoin Magazine.

via bitcoinmagazine.com

Binance Introduces Its Market Maker Program for High Volume Users

Major cryptocurrency exchange Binance launches a market maker program for its high volume users.

Major cryptocurrency exchange Binance announced in a blog post published on Sept. 30 that it is launching a market maker program.

Per the announcement, users whose monthly trading volumes exceed 1,000 Bitcoins (BTC) — or can reach such volumes — and who also have quality market making strategies can immediately join the program. Binance explains that the aim of the initiative is to bring more liquidity to the exchange.

A bid for more liquidity

The firm notes that the program is limited to the spot markets of the trading platform on a “market maker pair list” that will be periodically updated. Each market maker will be given a score based on their performance across various markets, depending on which the exchange will calculate their fees.

More precisely, the score will take into account maker volumes, bid/offer spread, total order size, order duration, weight adjustment on specific pairs. Binance requires applicants to prove their trading volumes. For example, by providing data from another exchange or by talking with their key account manager.

As Cointelegraph reported in April, competing crypto exchange OKEx also announced its market maker program, with incentives for participants in the form of lower trading fees and reduced transaction costs.

via cointelgraph.com