System Error at Korean Crypto Exchange Gave Users Free Coins

System Error at Korean Crypto Exchange Gave Users Free Coins

Exchanges

A South Korean cryptocurrency exchange said it suffered an internal system error which affected withdrawals. The exchange claimed that users were able to withdraw five times the number of coins they requested. It is asking for the coins back, and will seek civil liabilities and damages from users who do not voluntarily return the coins.

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

Internal System Error

New South Korean exchange Cashierest reportedly caused a controversy on Friday when it claimed to have an internal system error which affected withdrawals, according to local media. The exchange, which was launched in March, said that the error allowed users to withdraw more than five times the coins requested. Meanwhile, some users are claiming that they could not withdraw any coins at all during that time.

System Error at Korean Crypto Exchange Gave Users Free Coins

Money Today reported:

The amount of money that has been withdrawn [from Cashierest] is more than the amount that was intended to be sent to another virtual currency trading site. Currently, the trading site is asking investors to return the misdirected virtual currency.

Please Return the Free Coins

The Korean crypto community is saying that users were able to withdraw up to five times the amounts requested from Cashierest, the news outlet conveyed, adding:

An investor said that he moved cryptocurrency totalling 12 million won [~US$11,086] to Upbit, but the amount of 60 million won [~$55,400] was deposited.

System Error at Korean Crypto Exchange Gave Users Free CoinsThe Kakao-backed crypto exchange “Upbit detected the error through the transaction confirmation system and took measures to stop the withdrawal,” Newsis wrote. Sedaily elaborated that at 12:41 PM on Friday, Upbit “temporarily suspended [withdrawals] for some accounts where an overdelivery was detected from a presumed exchange.”

According to Newsis, Cashierest began halting withdrawals at 1:30 PM on Friday. The exchange then claimed that everything was back to normal with deposit and withdrawal services resumed at 4:39 PM.

System Error at Korean Crypto Exchange Gave Users Free Coins
Choi Jong-ku, Chairman of the Financial Services Commission (FSC), talking about the real-name system.

In South Korea, most crypto exchanges currently do not support withdrawals in Korean won. This is due to banks only issuing virtual accounts and providing services to the country’s largest crypto exchanges after the government implemented the real-name system at the end of January.

Upbit is one of the four that allow users to withdraw Korean won; others are Bithumb, Coinone, and Korbit. Users of other exchanges often transfer their coins to one of the four exchanges in order to sell them and withdraw Korean won.

Cashierest subsequently put a notice up on its website regarding this error, as conveyed by Money Today:

If you do not return it [coins obtained by error] within 24 hours, we will seek civil liabilities, and we will claim damages for the interest as long as it is delayed.

Other Withdrawal Problems

System Error at Korean Crypto Exchange Gave Users Free Coins
Notice on Cashierest’s website.

Meanwhile, some Cashierest users claimed that they were not able to withdraw their coins during the commotion, according to Biz Hankook publication.

One user said that “the withdrawal request was completed and then arbitrarily canceled, and the coins were returned to the virtual wallet [at Cashierest].”

Another user told the news outlet that the “Txid (transaction number) has been granted after requesting the withdrawal of the cryptocurrency, but it cannot be found” on the site confirming crypto transactions.

A third user described, “I withdrew the cryptocurrency, but only the transfer completed message was found, and the transaction was not made, and the coins that [I] requested the withdrawal [of] came [back] into the Cashierest wallet again.”

No Virtual Account, No Self-Regulation

According to the publication, an official of the exchange pointed out “that Cashierest is operating without a virtual account.” He believes “that this problem occurs because an exchange staff confirms whether the currency and the payment are matched,” adding that this can lead to “a huge mistake.”

“We have confirmed that it is not an external hack, but it is still necessary to check whether there is any problem with the internal system,” the official of the exchange was quoted, adding that:

The damage amount was estimated to be around 1 billion won [~$924,000]…We are reviewing civil lawsuits and damages for members who do not intentionally return [the coins].

According to Yonhap, the exchange did not join the Korean Blockchain Association to declare self-regulation, which 23 other crypto exchanges in the country have.

What do you think of this “system error”? Let us know in the comments section below.


Images courtesy of Shutterstock, Cashierest, and Korea Herald.


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

Market Analysis Report (25 Apr 2018)

Ubcoin Market, the first ICO of a product supported by Samsung and Fly, is LIVE!

Ubcoin Market is the easiest way to become a crypto investor or to spend crypto coins. A mobile marketplace where anyone can safely and instantly sell or buy real goods in exchange for cryptocurrency.

Ubank’s history began more than a decade ago, which accounts for the company’s credibility. Ubcoin Market is an extension of the Ubank mobile app that:

· exists since 2009
· is the leading mobile payments app in Eastern Europe
· has over 16 million installations worldwide
· is pre-installed on all Samsung and Fly smartphones sold in 9 countries, including flagship Galaxy 9

The current ICO token discount is 20%. Until 26th of April, 13.00 GMT buy Ubcoin Tokens (any amount) and get a chance for a TOP-UP BONUS of 10 000 UBC (= 1ETH)

ONE randomly-chosen wallet that was used to buy UBC tokens from 23rd of April, 18.00 GMT until the 26th April, 13.00 GMT will receive BONUS 10 000 UBC.

Don’t miss the chance — invest now on ubcoin.io! To learn more about Ubcoin check their youtube video and website.

Will WSOP Follow Winning Poker Network’s Cryptocurrency Lead for Land-based Event Payments?

When the World Series of Poker kicks off next month in Las Vegas, the method of buying into any of the 78 events will feel a little bit archaic for those who won their Main Event seat through online poker satellites on Winning Poker Network (WPN) sites. That method? Cash.

For years now, WPN sites have accepted Bitcoin for both deposits and withdrawals. And last year, the online poker network started accepting over 60 of the world’s most popular cryptocurrencies.

Those unfamiliar with the online poker network’s suite of sites that includes Americas Cardroom, Black Chip Poker, and YaPoker might assume that crypto payments are restricted to online poker. But that hasn’t been the case for several years now.

The Winning Poker Network was the first online poker network to offer cryptocurrency payouts to tournament winners at the Punta Cana Poker Classic, an annual land-based tournament it hosted beginning 2011 in the Dominican Republic.

WPN sites have made it extremely easy to deposit and withdraw using crypto. The process is as simple as depositing in cryptocurrency and converting to USD for play at the table. Then, upon winning, withdrawing back to their chosen cryptocurrency.

To learn more about WPN click here

Weekly Price Overview: Cardano, April 24

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

The market data is provided by the HitBTC exchange.

Cardano is the seventh largest cryptocurrency in terms of market capitalization. It has made a stellar comeback in the past few days on the back of its listing on the Huobi exchange and introduction of additional trading pairs on Binance exchange.

Traders also seem to be bullish on the fundamental front as many believe that it can become a major competitor to Ethereum.

So, what does the future look like?

Weekly chart

ADA/BTC

The ADA/BTC pair has a short but volatile history. From the lows of 0.00000254 on November 02 of last year, it skyrocketed to an intraday high of 0.00009180 on January 04 of this year. That’s a staggering return of 3514 percent within a span of about two months.

Thereafter, from there, it entered into a downtrend, which saw it plunge 81 percent from the highs to 0.00001673 on March 18.

What can the investors expect from here on?

For the past five weeks, the digital currency is in a pullback, which has reached close to 23.6 percent retracement of the fall from 0.00009180 to 0.00001673.

After such a sharp decline, a ‘V’ shaped recovery is unlikely because traders who had purchased at higher levels and were watching their portfolio sink to a huge loss would bail out once their buy levels are reached.

Similarly, short-term traders, who have purchased near the lows will also book profits on rallies.

The important levels to watch out on the upside are 38.2 percent Fibonacci retracement level of 0.00004541 and the 50 percent retracement levels of 0.00005427.

The start of a new uptrend can be confirmed only after the next decline towards the recent lows. A range bound action for a few weeks is also possible, which will be a positive sign. Longer the time spent in forming a base, larger will be the ensuing rally.

Let’s see how to use the levels above for trading.  

Daily chart

ADA/BTC

The daily chart shows how the current pullback has stalled right at the 23.6 percent retracement levels. For the past seven days, Cardano has been consolidating near the overhead resistance without giving up much ground. This is a positive sign. We also like the bullish crossover of the moving averages.

We should see another attempt by the bulls to break out of the overhead resistance within the next few days. If they succeed, a rally to 0.00004541 will be on the cards.

If the break out fails, then most of the traders who have purchased at lower levels will book out of their positions resulting in a dip.

The 20-day EMA will be the first support. If this breaks, a decline to the 50-day SMA is also possible.

So, how should one trade it?

How to trade the ADA/BTC pair now?

Long-term traders should accumulate positions on dips towards the 50-day SMA and keep a stop loss at 0.00001600. If prices sustain below the March 18 lows of 0.00001673, the targets on the downside are 0.00000965 and 0.00000560. The target of this trade is 0.000054 and higher.

Short-term traders, who have purchased at lower levels can hold their positions with a stop loss at 0.00003 levels.

Fresh positions by short-term traders should be only considered on a breakout and close (UTC) above 0.000035 levels with a close stop loss. Their first target is 0.000045.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

20% of Financial Institutions Examining Starting Cryptocurrency Trading Soon

20% of Financial Institutions Examining Starting Cryptocurrency Trading Soon

Finance

The cryptocurrency trading market is about to receive an influx of more big banks, hedge funds and other financial institutions within the next few months to a year. A new survey shows that while most are keeping quiet in public about their crypto plans, many are preparing to enter the field.

Also Read: Barclays Testing the Waters for a Cryptocurrency Trading Desk

Big Players Prepare to Charge

20% of Financial Institutions Examining Starting Cryptocurrency Trading SoonToronto-headquartered multinational information firm Thomson Reuters Corporation (NYSE: TRI), published a survey on Tuesday revealing that 20% of financial institutions are studying the possibility of entering the cryptocurrency trading space within the next 12 months period. Furthermore, 70% of those considering starting trading cryptocurrencies are planning to do so in the next three to six months, according to the survey.

The company says that the survey covered more than 400 of its clients across Thomson Reuters platforms including large asset managers, hedge funds and trading desks at the biggest banks. Over 300,000 financial professionals working in asset management, hedge funds and other institutions get access to cryptocurrency data (including price quotes for BTC, BCH and ETH) via the Thomson Reuters Eikon platform.

“Historically, the banking sector has been notoriously dismissive of the crypto movement. Cryptocurrency has variously been called a bubble, an asset for criminals, and worthless. But today’s survey demonstrates that while financial institutions are saying one thing, they’re doing quite another,” commented Kevin Murcko, CEO of cryptocurrency exchange Coinmetro. “We’re witnessing a gradual institutionalization of the market, and this is sure to drive mainstream adoption. The move to accommodate digital currencies is also a symbolic one; it’s a sign of growing maturity in the market, and represents just how far cryptocurrency has come since its days of relative obscurity,” he added.

Goldman Setting the Stage

20% of Financial Institutions Examining Starting Cryptocurrency Trading SoonThe most talked about major bank as widely considered to be in the process of entering the field is Goldman Sachs, although its CEO has denied in the past the rumors they are setting up a bitcoin trading desk. On Monday it was revealed that the company has recently hired Justin Schmidt, a former quantitative trader, to be the first head of digital asset markets in the company’s securities division.

“In response to client interest in various digital products, we are exploring how best to serve them in the space,” Goldman Sachs spokeswoman Tiffany Galvin-Cohen confirmed in a statement. “At this point, we have not reached a conclusion on the scope of our digital asset offering,” she added.

The bank should be more than aware of the huge demand hedge funds and other big investors have for cryptocurrency trading services. Circle, which is backed by Goldman Sachs, has recently doubled minimum ticket size on OTC bitcoin trades to $500,000 with an average of $1 million. And Chief executive Jeremy Allaire has told Business Insider that some transactions are now larger than $100 million and “That watermark will continue to rise.”

Do you think it’s inevitable that all major banks will enter the bitcoin trading ecosystem? Share your thoughts in the comments section below. 


Images courtesy of Shutterstock.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

Market Analysis Report (24 Apr 2018)

State of the Crypto

Bitcoin is up 3.18% at $9,243.850 with a volume of Ƀ87.5k – $795.8M on the USD pairs.

Ether is up 2.25% against Bitcoin at Ƀ0.07322 per Ether and up 5.72% against the dollar to $676.29 with average volume Ƀ36.8k on the ETH/BTC pair.

Bitcoin Cash is up 5.05% to Ƀ0.1642 with volumes of Ƀ50.5k and up 8.93% against the dollar at $1516.36.

Ripple is up 1.11% to Ƀ0.00009837 with volumes of Ƀ14.9k and up 4.45% against the dollar at $0.9089.

Zcash is up 4.98% for the day to Ƀ0.0327 per ZEC and up 7.61% against the dollar to $302.5 with an average volume of Ƀ3.7k for the 24 hour period.

Litecoin is up 4.85% against the dollar for the day at $159.86 and up 1.17% to Ƀ0.01726 on volumes of Ƀ11.7k.

Dash is up 7.21% at Ƀ0.05697 with Ƀ8.2k volume and up 10.49% against the dollar at $525.38.

Iota is up 0.68% to Ƀ0.0002352 on Ƀ4.3k volume.

Ether Classic is down 0% to Ƀ0.002312 with volumes of Ƀ6.9k and up 3.33% against the dollar at $21.39.

Monero is up 2.57% against the dollar at $289.81 and down 0.45% against Bitcoin at Ƀ0.03131 on volumes of Ƀ5.1k.

Neo is down 1.52% for the day to Ƀ0.008569 per NEO and up 1.54% against the dollar to $79.07 with an average volume of Ƀ4.6k for the 24 hour period.

Waves is up 3.44% to Ƀ0.0006156 on Ƀ2.8k volume.

Stratis is up 3.93% to Ƀ0.0006934 on Ƀ1.2k volume.

Cardano is up 0.44% to Ƀ0.00003212 on Ƀ4.0k volume.

NEM is up 0.57% to Ƀ0.00004382 on Ƀ706.371 volume.

EOS is up 12.25% to Ƀ0.001457 on Ƀ20.6k volume.

Tron is up 8.19% to Ƀ0.00000647 on Ƀ24.8k volume.

Stellar is down 0.31% to Ƀ0.00004156 on Ƀ3.3k volume.

Russian Government Concerned Crypto Bill Inadequate in Many Ways

Russian Government Concerned Cryptocurrency Bill Inadequate in Many Ways

Regulation

The Russian government has officially provided a response to the bill that seeks to outline the legal framework for cryptocurrencies. Many flaws and inadequacies were pointed out including unjustified restrictions on Russian residents and foreign investors.

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

Response to Crypto Bill

The Russian government published its official response on Saturday to the draft federal law no. 419059-7 “On Digital Financial Assets” which aims to regulate cryptocurrencies, crypto mining, as well as initial coin offerings (ICOs).

Russian Government Concerned Cryptocurrency Bill Inadequate in Many Ways
The House of Government, Russia.

In its response, the government outlined numerous concerns and suggested some amendments to the bill. The first change suggests relates to Article 2 of the bill which defines digital financial assets including cryptocurrencies.

Citing the definition of a digital financial asset as “a property in electronic form created using cryptographic means,” the government says this definition does not distinguish crypto-assets from “other objects created using means of cryptographic protection of information, such as certificates of enhanced qualified electronic signature, session keys generated in the process of establishing connections during the implementation of information exchange protocols in information and telecommunications networks.”

In addition, the response states:

The draft law does not contain the regulation of legal relations arising in connection with the circulation of cryptocurrencies, which may entail difficulties in law enforcement practice.

Furthermore, the government finds “it necessary to regulate accounting issues” of crypto-assets as well as “introduce corresponding changes in the legislation of the Russian Federation on taxes and fees” in order to tax crypto transactions.

No Mechanism to Identify Miners

Russian Government Concerned Cryptocurrency Bill Inadequate in Many WaysThe definition of mining also needs additional work. The document suggests expanding the list of criteria to qualify as a crypto miner “since the energy consumption indicator does not provide an unambiguous basis for such a conclusion.”

Some Russian ministries previously said that they were confident miners could be tracked and identified using electricity consumption. However, the government contradicted this belief in its response to the bill, noting:

The government believes that activities aimed at creating a cryptocurrency may not be directly related to the formation of a transaction register, but rather to provide energy, technical capacities, including areas where the equipment necessary for mining is located, and therefore this activity cannot be attributed to mining. In view of the foregoing, the government considers it necessary to clarify the definition of the proposed concept of ‘mining’.

Unjustified Restrictions

For both cryptocurrencies and ICOs, the government commented, “from the provisions of the bill it is impossible to establish how their primary emission is regulated,” elaborating:

The provisions of the draft law, as well as an explanatory note to it, do not contain a justification for introducing a number of restrictions imposed on residents of the Russian Federation.

Russian Government Concerned Cryptocurrency Bill Inadequate in Many WaysCiting Article 3 of the draft law as an example, the government interpreted, “residents of the Russian Federation cannot invest in digital financial assets in foreign jurisdictions.” However, “such a restriction is not justified.”

Russian residents will not be the only group restricted by this bill; foreigners will also face unnecessary restrictions. The document points out that the bill says a crypto wallet is opened by an exchange “only after passing the procedures for identifying its owner in accordance with the federal law on countering the legalization (laundering) of criminally obtained incomes and the financing of terrorism.” However this will “significantly” hamper the participation of foreign investors as well as local residents, the government declared, adding:

The government proposes to envisage in the bill the possibility for the operator of the exchange of digital financial assets to simplify identification by remote means.

The rights of foreign investors also need to be adjusted in the bill since “the government considers it expedient to further regulate the issue related to the rights of foreign investors to transfer cryptocurrencies to the issuer’s wallet in exchange for Russian issuer tokens.” It says “such a measure will increase the investment attractiveness of Russian projects.”

Trade Control and Identifying Crypto Owners

One proposal the government explicitly supports is ensuring control over the exchange of cryptocurrencies for Russian rubles or other foreign currencies above a certain size. The document conveyed:

It seems necessary to provide for mandatory control over the operations on the exchange of cryptocurrency for the currency of the Russian Federation or for foreign currency in an amount equal to or exceeding 600,000 rubles [~US$9,776] or the equivalent in foreign currency.

Nonetheless, the government is still concerned about “the absence of a mechanism for establishing the owners of digital financial assets and persons responsible for the operation of digital financial asset systems.” It says the bill as written “will not allow countering the criminalization of this sphere and the use of the said assets for illegal purposes, as well as ensuring the protection of the corresponding property rights,” noting “the definitions of the concepts used in the draft law should be adjusted from a technical point of view.”

Lastly, the government sees the need to correlate the provisions of other relevant bills: draft law no. 424632-7 “On amending part one, second and fourth of the Civil Code of the Russian Federation” and draft law no. 419090-7 “On alternative ways to attract investment (crowdfunding).” The response also calls for a “further study of the provisions of the draft law, taking into account the inexpediency of excessive regulation of civil and legal relations,” before concluding:

The government of the Russian Federation supports the bill provided it is finalized for the second reading in accordance with the said observations.

What do you think of the Russian government’s response and concerns? Let us know in the comments section below.


Images courtesy of Shutterstock.


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

Market Analysis Report (23 Apr 2018)

Transforming Agriculture With Blockchain

Pavo is a transformative IoT Blockchain platform for the Ag-Tech ecosystem, enabling:

• Provenance and radical transparency
• Mobile payments, credits, and decreased transaction fees
• Real-time management of supply chain transactions and financing.

The Pavo project is anchored in two major components that meet the needs of agriculture:

1) A fee-based hardware and software platform for growers, designed to increase the yield, quality, and purity of their product, create product differentiation, and maintain regulatory compliance.

2) A cryptocurrency for the agriculture ecosystem – including growers, wholesalers, manufacturers, and suppliers – to be used for secure, safe, and reliable payments

The Pavo software solution helps farmers:

● Record and monitor production practices in real time via the Pavo IoT gateway
● Record, report and analyze activities from planting to spray records to shipping
● Track labour costs and productivity to optimize human resources and related costs
● Easily measure and track the entire cultivation operation from anywhere in the world.

The Pavo token (PAVO) is a cryptocurrency payment system that enables agriculture market participants, such as growers, producers, innovators, retailers, and service providers in our network to accept digital payments from their customers and community members. The token will also facilitate smart contract execution between market participants and the data sharing across the entire supply chain.

Read more here

Press Release

Crypto Ads Ban Is Temporary, According To LinkedIn’s Co-Founder

Cointelegraph had a chance to talk to Eric Ly, Chinese-American investor and businessman and co-founder of LinkedIn, where for years he also served as founding CTO.

In the beginning of his career Eric held technical positions at prominent companies such as Steve Job’s NeXT, IBM or General Magic, before co-founding LinkedIn with his Stanford classmate and other colleagues in 2002. There, among other things, Eric was responsible for developing software integrations with software such as web browsers and Microsoft Outlook. Eric left LinkedIn in 2006 to develop his own projects.

Now Eric is launching a reputation system around the initial coin offering (ICO) ecosystem that aims to help people make trustful decisions while buying and selling something.

We talked about Eric’s new project, the role of reputation for everyday communications, social media, and cryptocurrency development.

On the recent crypto ads bans by social networks and Internet giants like Facebook, Google, Twitter

I believe that these kind of platforms are conservative protective approach for themselves. Recently, the Securities and Exchange Commission (SEC) has been asking a lot of questions and subpoenas for information from people and companies. I believe that is a protective measure from a lot of these companies to not engage in new form of not advertising, but activities by ICOs, they probably want to avoid potentially uncertain interactions with SEC.

But I do believe that this is a temporary period because like many domains, advertising has an incentive to support as many domains as possible. So when regulatory clears itself up, I believe there will come a time again when advertising of this nature around token sales will be re-permitted on these platforms.

On protective measures against scams and other motivations behind these bans

This is the only one that I can think of because back in the early 2000s there was this Digital Millennium Copyright Act, which allowed all of the online platforms to disassociate themselves from the responsibility of the content that their users would put onto their platforms. So that is very key act made it possible for web 2.0 to really flourish. Advertising really should be covered under that regardless of whatever domain is advertising.

But I do believe that the ban is fundamentally around just kind of a conservative protective measure that these platforms have to not have to be entangled with the answering the SEC’s potentially interesting questions, which they don’t have to deal with.

On cryptocurrency related ads on LinkedIn

I don’t believe LinkedIn has yet made a decision, you know, like the other social platforms, and it remains to be seen whether they will go in that direction. I wouldn’t be surprised if they made a similar decision based on similar reasons. But at this point we’re just conjecturing what the reason might be.

Eric Ly left LinkedIn in 2006, founded an event app platform in 2007, and now is developing a sophisticated project for the crypto community. He is CEO and founder of a Blockchain based trust protocol Hub.

Hub protocol in a glance

I have many simplified versions – I am trying to pick the best one. Hub is trying to put reputation on the Blockchain. What we believe is that trust and reputation are really valuable to people and right now they’re all locked up in centralized databases. What we’re trying to do is basically put that information onto a Blockchain so that people can control that information, so they can bring it from one marketplace or a community to another and really derive the economic benefits from it. We believe that in the coming years, billions of people around the world are going to be creating trustworthy relationships with each other using a Blockchain.

It’s sort of like a meta social network if you will. Our project is building a protocol. It’s underlying many different kinds of applications, both new and existing. So we’re not necessarily building one social network. We’re trying to enable a trust layer that can work across many different social networks and many different marketplaces, so that people can use their reputation across multiple of these networks or communities.

We have the initial protocol implemented and nearly ready for release – and we’re working on finishing the first proof-of-concept on the protocol, which will be a reputation system around the ICO ecosystem. We figured that was a great place to start and, you know, it provides a really great opportunity for us to kind of showcase the value of the protocol itself.

On sharing information in everyday interactions

We definitely see a lot of use cases around buying and selling and that exists across many different industries and different domains. We believe that transactions actually start with just interactions: people interacting with each other and basically sharing information and engaging with each other in conversations. There also needs to be an element of trust and reputation as well.

How do you know that the information that you are reading or somebody that you’re interacting with is a trustworthy source? We want to solve that problem as well. Because that is really the basis on which people make sometimes very important decisions about what they’re going to buy, what they’re going to sell.

So the whole process starts much sooner than just a transaction itself. So that’s what we want to cover the interaction part of it.

On tokens in a trust establishment

Tokens are really designed to incentivize trustworthy interactions and the building of reputation data on the Blockchain, which hopefully further creates trustworthy interactions. One of the design goals that we had for our token was that it is impossible to buy trust. We really wanted to design that in – you cannot buy the tokens and have more trust.

So what the tokens allow you to do is staking mechanism for various kinds of interactions that people might have – we define interactions very broadly. But you can imagine a buyer-seller scenario or a people sharing information with each other. Across all of this – the idea is that people can stake tokens on the interaction. It’s almost like a bond that says I’m going to act in a trustworthy way in this interaction. If I do that and the other parties agree, I’m going to get those tokens back, I’m going to get my bond back and I’m going to get rewarded with some additional tokens that I can take for some future interactions. But if things don’t go well, then the tokens that I have staked, might be at risk and might be given to somebody else who sort of lost out on a certain transaction, for example. So, that’s how the token works.

How to measure reputation

The important point is that you cannot buy your reputation. Otherwise, the whole purpose of the reputation system is defeated. So the way that we measure reputation is really on all of those granular interactions that are happening with the staking going on. So we remember, on the Blockchain, all the different interactions and transaction builds up a reputation history. That could be scored by different kinds of scoring systems.

So imagine a FICO score in the US that is designed for credit worthiness. Now we can have scores across multiple domains, even beyond credits and worthiness, where reputation and trustworthiness make a difference.

How this whole idea should work

One of our favorite scenarios is a kind of a service marketplace, where maybe somebody is a designer and they’re offering website design services, and then there’s a client who wants to find the right designer to build up their website. So, we can capture this transaction in a smart contract that records the participants and most importantly – it records the outcome. At the beginning of this transaction, both sides stake their tokens and say: we’re going to act in a trustworthy way. For the consultant, this means: “I’m going to do a good job, I’m going to successfully deliver the design”. For the client, this means: “I’m going to pay for that once I believe that this is a good outcome”.

So the participants will go through the process and the project, and they’ll come up with the results of the design. If everything goes well – both participants act in a trustworthy way. Somebody delivered, somebody paid – and they both get their tokens back, and a little bit more from the reward function that’s built into the protocol. When things do not go well – there’s a dispute and in this case it’s maybe not clear which side was correct: maybe the design was delivered correctly but the client just wasn’t happy for some reason. 

On disputes

So we have a mechanism where disputes can be handled by an arbitrator which can basically decide and is a trusted source for both parties to figure out who was right. In the arbitrator might, actually, have reputation himself or herself in the protocol. So however it gets decided: whether it’s the vendor, the consultant or the client – they get the tokens that have been staked on this transaction. There’s one party that basically loses out on that token.

There is basically an incentive that’s built into the overall process to incentivize people to act in a trustworthy way. Again, the reputation comes out of the history of that interaction and the outcome, and that it actually goes on to both the consultant and the client in terms of how they interacted. So, in the case of the consultant, if they do a lot of great projects then they build up a really great reputation for themselves – that maybe can reflect very effectively for them and get them new projects in a marketplace.

On losing tokens in a dispute

Maybe people might not always be able to perform perfectly, and that’s fine. The scoring algorithms and so forth will consider those situations and make sure that people have a fair chance to improve the reputation over time if in some cases they did not do it perfectly. So, we believe in designing a fair system that works in a fair and maybe even slightly generous way for people.

It is a professional network but it is falls into the broad category of a social network.

This interview was conducted at the Global Blockchain Forum, in Santa Clara, US, by Cointelegraph news editor, Olivia Capozzalo, in collaboration with Cointelegraph managing editor Lucrezia Cornèr.

‘Coindaddy’ Another Crypto-Rapper Rhymes About Bitcoin Life

'Coindaddy' Another Crypto-Rapper Rhymes About Bitcoin Life

News

Just last month news.Bitcoin.com chatted with the hip-hop artist ‘Lil’ Windex’ the Canadian rapper who made headlines last month for his rhymes about bitcoin cash. Now there is another rapper, from San Francisco, called ‘Coindaddy,’ an artist who has been coined a “Weird Al Yankovic” of cryptocurrency rap.

Also read: An In-Depth Interview With Rob Hustle

The ‘Crypto Castle,’ Fur Coats, Lambos, and Bitcoin

Arya Bahmanyar is a 28-year-old former commercial real estate broker turned hip-hop artist after allegedly becoming a millionaire from his cryptocurrency investments. According to a recent interview with the columnist Melia Robinson, Bahmanyar decided to devote his time to becoming a new rapper called ‘Coindaddy,’ and he started his own Youtube channel to release his music.

“I’m going to make songs that aren’t that good,” Bahmanyar explains in his recent interview recalling how he got started toward creating his ‘Coindaddy’ persona.

In his songs “Holding the Bag,” Coindaddy raps about a variety of cryptocurrencies and uses slang like ‘hodl,’ ‘Buying the dips,’ and ‘moon.’ Alongside this, the rapper likes to sing about lavish lifestyles, ‘Lambos’ and checking the price of BTC while getting laid. Coindaddy also does a duet with the well-known cryptocurrency musician Tatiana Moroz as well. In “Holding the Bag,” Coindaddy’s lyrics state:

If you want the ride and you want the riches then just buy more coin and get the bitches — Cuz bitcoin about to go straight through the roof it’s got the PBOC shaking in their boots.    

'Coindaddy' Another Crypto-Rapper Rhymes About Bitcoin Life
Arya Bahmanyar AKA ‘Coindaddy’

Many Artists Try to Bring Swagger to the Crypto-Game

Coindaddy already made headlines earlier this year for his New York Times appearance in the story “Everyone Is Getting Hilariously Rich and You’re Not,” which features newly made cryptocurrency millionaires and the infamous hangouts the ‘Crypto Castle,’ and ‘Crypto Crackhouse.’ Coindaddy was featured during his performance at the at the San Francisco Bitcoin Meetup’s Holiday Party at the bay-area club ‘Runway Incubator.’ Coindaddy detailed at the time he plans on releasing other songs called ‘Lambo Party’ and ‘Crypto Mom.’

“Right now all our entertainers come from outside crypto culture — not inside crypto, and we’ve got to change that,” Coindaddy explains.

'Coindaddy' Another Crypto-Rapper Rhymes About Bitcoin Life
From left to right: Coindaddy, Lil’ Windex, YT Cracker, Gramatik, and Chris Record. All of these artists have incorporated cryptocurrencies into their music tracks. 

The crypto-millionaire turned rapper says he plans to continue his illustrious career by utilizing his music to educate newbs about cryptocurrency. Coindaddy is not the only individual trying to break through as a cryptocurrency rapper who spits rhymes about bitcoin and the digital currency lifestyle. Other crypto-rappers who have made ‘bitcoin-esque hip-hop’ videos include Chris Record’s ‘Hodl Gang,’ Keem Ibara ‘Digital Gold,’ Gramatik ‘Satoshi Nakamoto,’ Team Hodl ‘Lambo Land,’ YT Cracker ‘Bitcoin Baron,’ Lil Windex ‘Bitcoin Ca$h,’ and many more artists.

What do you think about ‘Coindaddy’ or other rappers rhyming about crypto-life? Do you think more hip-hop artists will continue to rap about bitcoin? Let us know what you think about this subject in the comments below.


Images via Pixabay, Medium, and Youtube.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Market Updates

The cryptocurrency markets have enjoyed a strong week, with BTC, BCH, and many altcoins generating significant gains in recent days. There is considerable uniformity shared among major altcoin markets, with many cryptocurrencies recovering to test the 0.236% retracement areas after breaking above descending trendlines.

Also Read: Kraken CEO Condemns “Hostile” Questionnaire Issued by New York AG

BCH Gains Over BTC

Whilst bitcoin (BTC) has made gains of 10%, this past week has seen Bitcoin Cash (BCH) perform with considerable strength, ramping up to gain nearly 50% against the dollar in just 7 days. Yesterday, the markets surged past resistance at $1,000 USD, breaking into the four-figure threshold for the first time since March. As of this writing, BCH appears to be consolidating above $1,000, with current prices sitting at roughly $1,080.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

When measuring against BTC, BCH has gained 40% in a week – bouncing from a low of approximately 0.092 BTC to the current levels of roughly 0.13 BTC. When measuring from 2018’s high of 0.25BTC, BCH is currently consolidating at the 23.6% retracement area. Bitcoin Cash is currently the fourth largest cryptocurrency by market capitalization, with a total capitalization of approximately $18.5 billion according to Coinmarketcap.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Altcoin Markets Begin to Reverse During April

After months of sustained downward price action that saw many markets lose upwards of 80% – 85%, many altcoins have produced substantial gains over the course of recent weeks after breaking above major descending trend lines against both BTC and the dollar. Many markets are now testing their respective 0.236% retracement areas when measuring from 2018’s highs.

The second largest crypto by market cap, Ethereum, has made gains of approximately 60% over the last fortnight, rallying from the local low of approximately $370 USD during early April to test the $600 area in recent days. After a strong initial bounce, ETH has made consistent gains over the past week, gaining approximately 20% in the last 7 days.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

When analyzing the ETH/BTC charts, we can see that ETH has gained roughly 28% from April’s lows of approximately 0.054. As of this writing, ETH is testing the 0.236% retracement area of approximately 0.069 BTC and boasts a market capitalization of $59 billion.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Ripple Among Top Gaining Markets

Ripple is currently the third largest cryptocurrency with a market capitalization of $33.25 billion. In the last two weeks, XRP has made significant gains of over 80%, rallying from a low of $0.45 to test resistance at the approximately $0.90 area. As of this writing, the price of XRP is roughly $0.86.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

When measuring against BTC, XRP has bounced by approximately 40% since it’s April low of approximately 0.00007 BTC. As of this writing, XRP is consolidating just below the 0.236% retracement area of 0.0001, when measuring from Ripple’s early 2018 record highs.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Top Ten Crypto Markets Produce Significant Gains

Coinmarketcap’s list of the top ten cryptocurrency markets by capitalization has remained fairly steady during April, with all leading altcoins markets posting substantial gains.

EOS and Litecoin have been vying for the position of the fifth largest crypto market, with EOS leading with a nearly $9 billion market capitalization as of this writing. EOS has gained almost 90% in just two weeks, quickly surging from below $6 to the current price levels of $11.15. When priced against BTC, EOS has gained over 45% in the last fortnight, with current prices at around 0.0012676 BTC, and is currently testing a key resistance area.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Litecoin is currently the sixth largest crypto market with a total capitalization roughly $8.4 billion. In the preceding fortnight, LTC has gained over 30%, bouncing from $115 to $150. Measuring against bitcoin, LTC has made modest gains of roughly 10% from it’s April low. As of this writing, the price of LTC is approximately 0.017 BTC. LTC is the least correlated of the major altcoin markets, having spent the majority of 2018 channeling within a 30% when paired against BTC.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Cardano, Stellar, and IOTA Double During April

The price of Cardano has nearly doubled during April, with the ADA markets rallying from a low of $0.145 two weeks ago to now be testing resistance at $0.285. ADA has gained roughly 47.5% over BTC in the last fortnight, bouncing from roughly 0.00002200 BTC to the current prices of 0.00003250 BTC. Cardano is currently the seventh largest crypto market, boasting a market capitalization of $7.4 billion.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Stellar has also nearly doubled during April, surging from a low of $0.19 to test current levels at $0.37. When paired against bitcoin, Stellar has gained roughly 46.25% in two weeks, bouncing from 0.00002900 BTC to 0.00004250 BTC. Stellar is the eighth largest crypto market with a capitalization of $6.91 billion. Stellar rallied as high as the 0.618% retracement when measuring against BTC, and is now consolidating at the 0.5% retracement area.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

IOTA is currently the ninth largest crypto market with a capitalization of $5.25 billion. IOTA has doubled in two weeks, bouncing from $0.095 to the current levels price are of $1.89. IOTA has gained 49% over BTC in the last fortnight.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

NEO has gained 60% in two weeks, bouncing from roughly $46 to $74. Against BTC, NEO has gained 25%, rallying from 0.000675 to 0.000847. NEO is the tenth largest crypto market with a capitalization of $4.8 billion.

Markets Update: Altcoins Rally During Week of Bullish Action for Crypto

Altcoins Are Back?

Markets Update: Altcoins Rally During Week of Bullish Action for CryptoAlthough the cryptocurrency markets have produced impressive performance during April, whether or not the markets can sustain the bullish momentum in the medium term remains to be seen.

With so many altcoin markets breaking above descending triangles and rallying to test the 0.236% fibonacci retracement areas, many analysts are waiting for the markets to pull back and produce a higher low on larger time frame charts before proclaiming that the first altcoin season of 2018 is indeed kicking off.

Do you that the altcoin markets will continue to rally in the coming weeks, or are altcoins just experiencing a dead cat bounce? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Trading View


Want to create your own secure cold storage paper wallet? Check our tools section.