Bitcoin Price Set For The Best Month Since November 2013

Brief Comments on Goguen: Q4 2020, Q1 2021, utility, Marlowe, DSL, Glow, Plutus, IELE, smart contracts, thanksgiving to you, sidechains and Hydra, Goguen rollout and additions to product update

Smart contracts (origins in 80s, 90s vs. 2013 ETH and 2020s Cardano)
We had a pretty interesting product update. We laughed, we cried, we all learned a little bit. Two and a half hours lots of stuff and I hope this gives you guys a good window into all the things that are happening. There's an enormous amount of complexity in Cardano and Goguen is no different. In fact that one slide showing all the interlocking dependencies and the moving pieces for it and just the sheer volume of things that are going on is, is an indication of not only the quality of the team but also the commercial reality of being a smart contract platform. In 2020 when I co-founded Ethereum our reference material was paper. We looked at things that Nick Szabo and people from the 1990s and 1980s wrote about and whether you were a Ricardian contract fan or you had programmed in Eiffel or you understood things like FpML basically it was an open field which gave us kind of a freedom to just do whatever we wanted to do but it also didn't give us a commercial reality of who's going to buy it? Who's going to use it? What do you need to do? The expectations in 2020 are vastly different from the expectations in 2013 and the reality is that there are massive deficits with Ethereum as designed today which is why Tezos exists and Algorand exists and why ETH2 is being constructed . It's why there are so many different players from Polkadot and others on down who have deep and detailed opinions about the things we need to do. If the ICO revolution hadn't happened, there was no notion of an ERC20 token and we were in a just different world.
We didn't have DeFi, any of these things and now in 2020 if you are to be competitive and build great things and actually invite real use and utility at a scale of millions and billions of people or government or Fortune 500 you need to have real good answers about a lot of different threats and things. For example, Marlowe, what it does is it leverages 20 years of history from domain experts like Willi Brammertz and over 30 years of history in domain-specific language (DSL) design from professor Simon Thompson and his team and it puts them together. It says for the first time ever we're going to have semantical clarity between the entrepreneur, the developer, the writer and the financial services infrastructure whether that be the banker, the insurance agent, the exchange, whoever that might be. Up until the totality of human history till today we have never had that semantical clarity. All four of those actors speak different languages and what we're doing with Marlowe as a DSL is an example of how you can unify and create a common language and experience between all of them today.
Marlowe, DSL, Glow, Plutus, IELE
Right now, you guys can go to the Marlowe playground and you can start using it and start building things and start having that semantical clarity and work with us and over a period of six months or so that will continue to evolve. Templates will evolve, applications will be constructed and those applications will work their way into Cardano applications and eventually they'll become cross-platform and work on things like (Hyperledger) fabric and other such things as we see industry and commercial adoption but it requires a starting point and Marlowe has evolved over a four year period through the hard labors of so many people to actually give us a great starting point. You can visually look at contracts and talk about their design. You can write them in JavaScript, you can write them in the Marlowe programming language. There's a Haskell side to things and you can see the power of this approach because of its design. You can prove things are correct, you can use theory that has existed for over 40 years like SAT solvers and reachability to actually show that you're not going to have a parity bug and that's just one example of one DSL of which many more will come. The point of DSLs is to give clarity to people in the industry. For example if we get into the health business and we start talking about medical records that will become a DSL to broker their movement and that same clarity and semantical unification will occur between doctors and hospitals, patients, governments, regulators and business professionals and they will now have a common language. So, Marlowe is an entry point and it's an example of how to build a DSL and evolve a DSL and bring the right people to the table.
When we look to things like Glow, from MuKn, this is an example of a team that's highly motivated and intrinsically across blockchain. When we look to the future and we say what happens when Bitcoin gets smart contracts? What happens when ETH2 comes out? What happens when people want to build cross-blockchain applications? Wouldn't it be nice to have a unification language and that's what Glow is basically all about. By strategic investments in that ecosystem, what Glow does for us is it ensures that we won't be left behind that Cardano has that and all Cardano infrastructure can benefit from that and Glow in turn will benefit from its embedding in our ecosystem. More users, more technology and ultimately because Cardano's the best. If you deploy in that direction it's the best experience. When you look to Plutus, Plutus is the unification language, it's the conductor of the orchestra and it pulls all of these things together and there were a lot of design requirements with Plutus that were quite hard from a theory viewpoint. We really cared a lot about resource determinism. We wanted to make sure that it was always predictable or at least as predictable as it can be to know how much it costs to do things because at the end of the day this is not a science experiment. These are not toys back in 2013. We had the luxury with Ethereum of just seeing what happened and the market makes strategic investments and they have to know how much their operating cost is going to be for their business model. We designed Plutus so that it would be one of the best programming languages on a long arc agenda of being a very practical on and off chain language to unify all the Cardano ecosystem. There are many objects in the ecosystem to operate, manipulate, instruments of value like native assets, identity, smart contracts onto themselves, DAOs, off chain infrastructure and you need a conductor that's capable of living in between all of these things and you need certainty that the code you're writing is going to work.
This is why we based it on an ecosystem that has 35 years of history and we as a company have invested millions of dollars in that ecosystem to modernize it and bring it into the 21st century especially for things like Windows support and working with partners like Tweag WebAssembly support, working on projects like compilation to JavaScript so that we can share that's there and our commitment is going to continue beyond that we are a founding member of the Haskell foundation working with Simon Peyton Jones and we're going to ensure that Haskell has compilation to ARM and that all of the technology that's required to keep that language competitive and actually make the language even more competitive will happen. It's very nice that Plutus is deeply ingrained in that ecosystem and that makes it a perfect conductor language. In the coming months we're going to talk a lot more about our relationship decay in IELE. If you live in the imperative object-oriented world and you want to do things a bit differently than the way things are done in the Haskell functional world then it makes sense to have an option that has the same principles as us which is why we reached out to Grigore years ago and established a commercial relationship with him. It's been the privilege of my career finding a way to resurrect that relationship so in the coming months we're going to talk a lot about how IELE fits into the Cardano ecosystem and the value it's going to bring in addition to the value of Marlowe, Glow, and Plutus.
Native assets
One of the single most important things about all of this is the native asset standard. One of the things we did not anticipate when we created Ethereum is just how pervasive the user's ability to issue an asset would be. We figured this would be an important thing, it's why we put it on a T-shirt back in the Miami conference in January of 2014 and we realized that from the color coin's project in the master coin project and one of the most important things is that we have the ability to issue not just a utility token but non-functional assets, security tokens and a litany of other instruments that hold value. Some ephemeral, some permanent, some with flexible monetary policies, some with fixed monetary policies, some from a central issuer, some from a decentralized issuer, some managed by a foundation, some managed by the community, some managed by fixed code that's immutable and the point of the native asset standard in the ERC20 converter is to establish a co-evolution of the technology and the commercialization of the technology. What we've been doing with ERC20 converter is using that as a way to create a conversation with those who want to migrate or build on Cardano and thinking through how are we going to create practical standards with our native assets. We already have enormous advantages with this standard over Ethereum. In particular the fact that your assets you issue on Cardano are treated the way that ADA is treated whereas in Ethereum you're a second-class citizen or ETH is treated differently from smart contracts. This first class citizen approach means that your assets will have the same governance access layer, to portfolio access and infrastructure that ADA itself has. Easier listing experiences, easier time with hardware wallets, easier time with wallet software. In general better user experience, faster transactions, lower transaction costs and then eventually for higher value tokens even the possibility of paying transaction fees over the long term in the native asset itself as if you were your own cryptocurrency.
Goguen rollout
You just simply cannot do this with the design of Ethereum and Ethereum 2. It's a huge advantage we have in our ecosystem and it's one that will become more pervasive over time now Goguen has already started. As a launch agenda the very first update to enable some Goguen era functionality was the metadata standard which meant that you could go from just moving ADA around to actually a whole litany of applications in the identity space and in the metadata space some of which we're aggressively negotiating on in commercial deals which we'll announce at a later date. The rollout of Goguen in terms of the system as we mentioned in the presentation will be principally done for the first iteration over a series of three hard fork combinator (HFC) events. The first of which is beginning this year in November December time frame and that's going to lay a lot of the foundations that will enable us to get to the second hard fork combinator event which will occur in Q1 of next year and we'll announce that specific date likely at the next product update and then the third one will happen shortly thereafter. They have to be spaced this way because it's just simply too cumbersome on our developers and also our partners such as wallet infrastructure and exchanges to try to do too much too quickly and furthermore there's an enormous amount of work as you've noticed on that slide to roll out Goguen. You have to do two things at once, you have to deploy the infrastructure but then you also have to populate the infrastructure and what's nice about the way that we've done things as you now see with the Marlowe playground the population of that infrastructure is occurring now today and with the ERC20 converter and the mint test net that's coming.
That's going to occur in November which means that that gives people time to start building and playing on our ecosystem in a safe sandbox so that when they deploy it to the mainnet they do it right the first time and they don't make an existential failure as we have seen with the DeFi space because at the end of the day once you go live you have a huge adversarial surface and everybody in the world is going to try to break the things you've done. It's very important that you do it right which means that you need time as a commercial partner and an application deployer to do it correctly. Parts of Goguen are indeed shipping this year, some have already shipped and we'll have another HFC event at the end of next month or early in December and throughout the first quarter of next year and likely the second quarter will complete the other two HFC events which will roll out full support for native assets, extended UTxO, the Plutus infrastructure and the Marlowe infrastructure. In the meantime we're also working on strategies about how we can ensure best integration of Glow and IELE into the Cardano ecosystem and as you've noticed there are three parallel teams that are working very hard. The Shelley team continues to upgrade the Shelley experience. Just today we've received a lot of concerns over for example the state pool ranking in Daedalus. Let me be very clear about something. There's no problem with the ranking software, the problem is the k parameter. It needs to be increased and the fact that things are getting grayed out is an indication that the ranking parameter is actually working right for the first time. So, k needs to go up but there are consequences of that and we need to improve the software to reflect those consequences but it is my goal to get k to 1000 before ideally d hits 0 because we really do want to have over a 1000 well-functioning stake pools but by no means is that the end of the story.
Improvements + project Catalyst
We need partial delegation and delegation portfolios. We need means for stake pool operators to communicate effectively and efficiently with those who delegate to them. We need improvements in SMASH. We need an identity center, we need a litany of improvements to Daedalus itself. Right now, today, there are more than four companies working full-time at doing just these things in addition to the Goguen updates that are occurring right now. That research thread and that development thread will continue. We've already seen seven CIPs including CIPs related to the reward function. We take them very seriously, we review them and there's enormous amount of discussion about how to create a fair and balanced system and we appreciate this feedback. It's a process and we ask for patience and we also remind people that we launched Shelley just at the end of July and despite that the ecosystem has more than doubled in size and it's been growing at an incredible pace and it's only going to continue and we're only going to see our best days ahead of us. Good things are coming down the pipe and it's becoming a much more holistic ecosystem from in performance improvements, to usability improvements, to better overall software for everyone.
There's no greater example of that than what we've been able to accomplish in the last three months for the exchanges in general. We're really proud of what we've done with the Adrestia stack and we're really proud of working with great partners like Binance and Bittrex throughout the last few months and we've had some certain challenges there but as a result of overcoming those challenges we have left behind an incredible enterprise grade listening experience that continues to get faster, continues to get higher quality and is secure and reliable 24 hours a day, seven days a week and we'll continue investing heavily to ensure that that only gets better for all of those partners whether they be an external wallet or their infrastructure like an exchange operator. We've had a lot of wins also on the governance side with the Voltaire Catalyst project. We have seen huge wins in participation going from small focus groups to now over 3500 people every single day coming into cardano.ideascale.com competing for 2250000 worth of ADA with fund2. That's just the beginning and every six to eight weeks that's going to increase in scale, in terms of the money and people, the quality... When we ask what is our developer acquisition strategy that's a major part of it because people know that there's money to be made in building on Cardano and that you have the right incentives to go realize your dreams and add value so just as these frameworks like the Marlowe playground and the Plutus playground and other such things like Glow come online and IELE come online the ability to build will be matched by the ability to discuss what to build and fund? What to build through a community driven process that includes greater and greater inclusivity. For example the next fund will include a voting center built right into Daedalus in addition to the cell phone application that we've already launched to vote and we will continue refining that experience relentlessly that's one of our fastest moving teams and I will remind you we are doing this in parallel to the Shelley workstream and the Goguen workstream that we showed you guys today. Finally there's Basho, not the next hard fork combinator event but HFC#3 which we anticipate in Q1 2021.
Sidechains, Hydra
I would like to include a sidechain protocol that allows the movement of value between independent systems through some form of blocking mechanism. We are currently examining and designing a protocol that we think fits very nicely into the way that our system works with mild modifications to the ledger rules. If that and should this be successful then that helps with one of the pillars of Basho interoperability and then the other pillar is scalability. Rob is hard at work working with technical architects and scaling up a team to start de-risking the Hydra protocol and others are hard at work evolving the science behind the Hydra protocol. We have seen great progress on all fronts to de-risk Hydra's roll-out and what's so beautiful about Hydra is it is our belief that the majority if not all of Hydra can be implemented in Plutus. As Plutus rolls out we have a natural constituency to run this infrastructure. The stake pool operators and we have a natural way without an HFC event or special accommodation of rolling out Hydra.
It's not really needed at this level of scaling capacity. We have an enormous throughput already 10 times greater than Ethereum as it is today and room to make it a hundred times greater than what Ethereum is today without Hydra. However as we de-risk this infrastructure solidify the protocols and get out all the kinks. What's so beautiful about it is that we will be able to when the time comes the community can roll out multiple implementations of Hydra so that there is diversity and there will be a natural group of actors to run those channels as we have seen for example with the Bolt spec and the Lightning ecosystem on Bitcoin. The contrasting difference between Lightning and Bitcoin and Hydra and extended UTxO and Cardano is we designed Cardano for Hydra.
Bitcoin was not designed for Lightning and as a consequence it's always more difficult for them to try to make meaningful progress whereas us there's no friction in that relationship. It just fits very nicely through so the roadmap is coming together and Cardano 2020 has definitely started to evolve into quite a mature ecosystem and what's really exciting is we're going from an ecosystem of potential to one of reality and instead of asking what could we do we're showing people what has been done and people are actually doing things every day.
Our commercial team is inundated with requests for coordination and cooperation and deployment. I get numerous emails every single day, well intended to very serious about people wanting to build on the platform and we're really excited about that. We're going to keep this steady systematic relentless march as you saw with the enormity of the news today. It's business as usual and it'll be exactly the same in November only there'll be more and every month. The velocity increases, we burn down the remaining story points to get these things done and things are happening very quickly and we just keep releasing and releasing and releasing and it's a very different time than it was even six months ago.
Community rules
What's so reassuring is we continue to have the best community in all the cryptocurrency space. It's the final point but it's one that I'm most proud of. You see people get to decide where they want to live, what infrastructure they want to deploy, on who they want to work with and when you have a welcoming warm and friendly community that is constructive and productive and their job is to help you get to where you need to go you want to work with those people. When you have a destructive or toxic community that's exclusive hierarchical and not invented here in their mentality people don't want to work with that community. Money can't buy that. I don't care if you have a bank account with four billion dollars or you're a central bank. You can't buy character and you can't buy culture, you have to make it and you have to earn it and if we've accomplished anything over these last five years from the 90 papers now and the million plus lines of code and the incredible releases that have happened and continue to happen we accomplished the greatest thing of all: we built a community to rival that of bitcoin's. I believe with that community we can realize the dream in the coming years of Cardano becoming the financial operating system.
For those who don't have one and giving open prayer and free economic identity to those who need it I am astounded by just how easy it is to roll these things out. They're super hard and complex under the hood but they just feel right and fit right and all the pieces are starting to come together in just the right way and I'm astounded by the fact that when we roll them out community members are there to receive them and take them to the next level.
Thank you all for attending the product update at the end of the month. This was a real good one, just as good as the Shelley one and we are now in the Goguen era with the first HFC event coming in the end of November and we're going to keep pushing them out. Every single one of them will add more capabilities and I encourage everyone to check out the Marlowe playground start building with it. Today things are happening really fast when the mint comes online at the end of November. Start playing around with that, start talking about the multi-token standard. If you're interested in a project our commercial division divisions always' open and you're going to see more and more progress from all entities in this ecosystem and some potentially major announcements before you can think it. Thanks guys it was a good day and thanks to the entire team that made all this happen I'm real proud of all of you.
Video: https://www.youtube.com/watch?v=l5wADba8kCw
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ETHE & GBTC (Grayscale) Frequently Asked Questions

It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions.
The goal is simply to have a thread we can link to anyone with questions on Grayscale and its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread. My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers.
Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect
Everything below will be in reference to ETHE but will apply to GBTC as well. If those two segregate in any way, I will note that accordingly.
What is Grayscale? 
Grayscale is the company that created the ETHE product. Their website is https://grayscale.co/
What is ETHE? 
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF? 
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed? 
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created? 
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor.
Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”)
Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product? 
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow? 
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there.
As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however.
Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH? 
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares? 
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure? 
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset.
Source: ETHE’s informational page on Grayscale’s website - Located Here
Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE? 
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC.
ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here
For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing? 
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC.
As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on.
Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain? 
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good.
Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon.
Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel? 
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.)
That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely.
IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]… 
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0? 
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015.
Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?” 
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance.
As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium? 
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:

Are there any other differences between ETHE and GBTC? 
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc? 
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing.
For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH? 
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund.
In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale? 
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know.
Per user Over-analyser (in comments below):
Coinshares (Formerly XBT provider) are the only similar product I know of. BTC, ETH, XRP and LTC as Exchange Traded Notes (ETN).
It looks like they are fully backed with the underlying crypto (no premium).
https://coinshares.com/etps/xbt-provideinvestor-resources/daily-hedging-position
Denominated in SEK and EUR. Certainly available in some UK pensions (SIPP).
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE? 
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.

submitted by Bob-Rossi to ethfinance [link] [comments]

Huobi Exchange Review

A HISTORY OF HUOBI
Huobi was founded in 2013 by their current CEO and chairman, Leon Li. Li’s background includes having attended Tshingua University, specializing in Automation. Before starting the Huobi Group, Li spent time as a computer engineer at Oracle. In December of 2013, Huobi was named as the largest digital asset exchange operating in China. 2017 saw Huobi extend their limbs into Korea, Singapore, and Japan.
Currently, Huobi has headquarters of various financial sectors based in: Singapore; South Korea; Japan; Australia; Indonesia; Russia; Argentina; Thailand; and China. The company has strived to give customers not only a great exchange, but a great resource for any service one may need. Despite the many difficulties faced with Chinese government in regards to cryptocurrency laws, Huobi has managed to adapt to the changes and thrive globally, eventually branching off into various sectors including venture capital, a cryptocurrency wallet project, and a division dedicated to working with mining pools.

HUOBI'S PLATFORM
spot trading : Huobi offers several different platforms to serve any customer’s needs. For starters, Huobi offers a standard spot trading platform that operates similarly to many other spot trading platforms in the industry. The platform features a multi-timeframe chart, a depth chart, and integration with TradingView (including their tools). Customers are able to view the order book and the asset trading history, as well as their own personal order history. Limit orders, Market orders, and Stop-Limit orders are all available options for traders.
margin trading : For the trader that prefers to trade with a little more volume or risk, Huobi offers a Margin trading platform. Customers can apply for loans through Huobi to trade a greater quantity of cryptocurrencies and profit from the price spread. The original loan must be paid back, and accounts can be liquidated if the risk ratio falls below 110% (calculated as: [(Loaned Amount + Tradable Balance) Total Asset] / [(Interest Payable + Loaned Amount)] x 100%.) Traders can margin trade with Bitcoin; Ethereum; XRP; Litecoin; Bitcoin Cash; and EOS. These assets can be traded with USDT or BTC.
futures trading : Huobi also offers a Futures trading platform. While margin trading can be risky, trading contracts is said to be very high-risk. With that being said, Huobi offers Weekly, Bi-Weekly, and Quarterly contracts in Bitcoin; Ethereum Classic; Ethereum; EOS; Litecoin; Bitcoin Cash; XRP; TRX; and Bitcoin SV.
OTC(P2P) - The OTC, or over-the-counter, section of Huobi offers potential buyers and sellers a way to move large quantities of coins without exposure to the fickle exchange market. Certified merchants can register here, and slippage can be minimized by matching buyers and sellers directly instead of creating market orders.


HUOBI APPS
While you do have the online trading interface, Huobi does have computer programs and mobile apps that you can use.
I found that the PC programmes were more functional as they did not have to rely on the PC browser and were hence much faster. They also have better charting and you are in more control of your trading parameters. These programs are available on Windows and Mac devices.
However, if you are a trader that is always on the go, that is where the Huobi mobile apps come in. These were developed for the main exchange but you can switch to the derivative markets on the futures and swaps platform.
This was a pretty well designed application and you have one-touch ordering as well as some basic charting functionality. The app is available in iOS and Android and you can head on over to the respective app stores to get a sense of the feedback.


EXCHANGE SECURITY
Huobi operates a hot and cold wallet storage procedure. This means that they keep the vast amount of their coin holdings in an offline environment away from hackers. They then have a smaller percentage in “hot” wallets with multisig capability.
They also operate a decentralized server structure around the world which can ensure uptime irrespective of whether one of the servers goes down. You can think of this as effective load balancing.
Finally, they have anti DDoS measures in place. We all know that crypto exchanges are prime targets for Denial of Service attacks and it can be quite frustrating when these are perpetrated in peak market times.


IS HUOBI TRUSTWORTHY?
Huobi, like many exchanges in the space, has had, at one time, some shady history, but for the most part, has managed to maintain a clean reputation. Historically, Chinese exchanges have shown to operate in accordance with different standards, with many exchanges having to suffer at the will and whim of the Chinese government. Some of the controversy Huobi has seen in the past has been a result of this (particularly with the Chinese ban on ICO tokens). It should be noted that in 2017, the exchange did invest into “wealth-management products” using idle customer funds. This sort of activity shouldn’t be taken lightly.
However, with that being said, the exchange continues to turn over a large amount of volume. For the most part, the exchange can be considered a trustworthy platform to trade popular and exotic cryptocurrencies. This does not mean it is entirely safe to store user funds on the exchange, as the exchange (or the user funds) can be susceptible to risk at any given moment. No matter how comfortable one may be with the internet, one should always remember that the internet is not as safe as many would like to believe. Huobi does have measures in place in the unfortunate event that an account is breached, and if verifiable, the customer may be able to retrieve lost funds.
A unique feature offered on Huobi is their Official Media Authenticator. This essentially lets users enter the URL of a content channel to see if the channel is authentic. A feature like this, while seemingly simple, could save anyone from potentially losing their funds due to a scam or phishing website.


HUOBI REVIEW VERDICT
Huobi Global offers a signficant host of features to its users and has maintained its credibility over a long period of time. This is largely one of the main reasons it a ranked as a top 4 exchange by liquidity as its users trust their funds there.
After establishing itself in Asia, Huobi is trying to branch out and take on other areas of the globe which is great news for Western traders. Additionally, the Huobi prime platform could provide some great opportunities for the exchange users moving forward.

Huobi Website: https://www.huobi.com/topic/invited/?invite_code=q7g23
Huobi Indian Community: https://t.me/huobiglobalindia
Huobi Global Community: https://t.me/huobiglobalofficial
submitted by chamithasro to u/chamithasro [link] [comments]

HUOBI – THE EXCHANGE BUILT FOR THE FUTURE - A HONEST REVIEW BY AN USER

HUOBI – THE EXCHANGE BUILT FOR THE FUTURE - A HONEST REVIEW BY AN USER
HUOBI – THE EXCHANGE BUILT FOR THE FUTURE
A HONEST REVIEW BY AN USER
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Leon Li founded Huobi in 2013, a former computer engineer at Oracle. Huobi Global is a digital asset and crypto currency exchange headquartered in Singapore. Huobi also has local exchanges in South Korea, Japan, and through its strategic partner, the United States.
The Huobi Group, the parent company of Huobi Global, has received venture capital finance from prominent Beijing based ZhenFund and American VC firm Sequoia Capital.
The Huobi Global exchange serves traders in 130 countries. Through Huobi Global, traders can access almost 200 crypto and stable coin assets. Huobi users can download trading clients on both mobile and desktop devices.
Huobi has traded over US$1.2 trillion in digital assets, and at one time it was the world’s leading exchange by volume, capturing 50% of all global trading volume.
In terms of security, Huobi has adopted a decentralized exchange structure, which helps to resist DDOS attacks. However, Huobi has implemented the ‘Huobi Security Reserve, in which Huobi has set aside 20,000 BTC reserved for users who have lost funds either due to hacks, or exchange failures.
Ease of use
The UI is clean, user-friendly and perfectly designed with all the basic requirements for a crypto-trader. The charting software is provided by Tradingview, which is exactly what you want.
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Huobi OTC
Huobi’s OTC exchange is a good initiative. The Huobi OTC exchange allows users to trade funds peer-to-peer which doesn’t affect the market price of the underlying asset. The OTC trading-desk, with transfer options like bank-transfers, PayPal, WU, Paytm, UPI, IMPS, Alipay & many others, is an easy to use payment gateway. With a secure exchange to diversify your investment, right next door, too with effective list of Buy and Sell options for BTC, ETH, USDT and EOS coins.
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Huobi Lite
Huobi Lite App provides a convenient channel for everyone to buy cryptocurrencies at the best prices. Tailor-made for beginners, traders, and users.
We can download the App directly from the respective iOS Store or Google Play Store. Alternatively, we may access via the link: https://lite.huobi.com/download
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On Huobi Lite, you can buy Bitcoin with your local currencies, credit card, or exchange cryptocurrencies tokens, with zero fees at competitive prices. Huobi Lite currently supports MYR / HKD / VND / USD (Credit Card deposit only), with more to come in the future.
Huobi Derivative Market (Huobi DM)
Margin Trading
Huobi Global launched Huobi Derivative Market (Huobi DM) exchange to selected countries. It provides margin trading, with very low daily loan interest rates of 0.1%. Margin Trading allows users to increase their investment exposure given a limited base principal to enjoy multiple returns.
3-Steps taken in Margin Trading:
  1. Request for Loan
  2. Trade on Margin (Long/Short)
  3. Repay Margin Loan and Interest
With the introduction of Cross Margin on Huobi, users will have to explicitly input the respective margin type before executing the above 3 steps. Balances on the Cross Margin balance does not show on the Isolated Margin balance.
Huobi Futures
Huobi Futures is a kind of digital currency derivatives. Users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment.
The Huobi Futures Contract adopts spread delivery. When the contract expires, all open positions will be closed at the index-based last-hour arithmetic average price, instead of physical delivery.
BTC/ETH/EOS/LTC/XRP/BCH/TRX/BSV/ETC Contracts are available on Huobi DM. Contracts are priced in USD, with corresponding digital currency (BTC/ETH/EOS/LTC/XRP/BCH/TRX respectively) as margin to open positions, and PnL is also settled in corresponding digital currency.
Weekly, bi-weekly and quarterly contracts are available in Huobi DM. Weekly contracts will be settled on imminent Friday; Bi-weekly contracts will be settled on next Friday; Quarterly contracts will be settled on the last Friday of March, June, September and December.
Choices of leverage: 1x, 5x, 10x, 20x
Huobi Perpetual Swap
Huobi introduced Perpetual Swaps on March 27, 2020 (GMT+8). Huobi Perpetual swap is a kind of digital currency derivatives. Users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment. Similar to a margin spot market, its price is close to the price of the underlying reference index. The main mechanism for anchoring spot prices is the cost of funds. Perpetual swap have no delivery date. Users can always hold it. Perpetual swap are settled every 8 hours. After each settlement, the realized profit/loss and unrealized profits/losses are transferred to the user account balance.
Partial Liquidation
Huobi Futures adopted partial liquidation to help position holders reduce liquidation risk. Users with large positions and high leverage bear high risk. Huobi Futures releases partial liquidation with the aim to lower possible losses due to high price volatility thus giving users better trading experience.
Under partial liquidation mechanism, when liquidation is triggered, instead of liquidating all positions at once, the system reduces positions gradually till a grade whose margin ratio is great than 0. Full liquidation will only occur when the margin ratio of tier 1 upper limit net position still fails to be great than 0.
Trading Fees
The Huobi exchange has a fair trading fee structure. Every asset traded via Huobi Global is subject to a 0.2% trade fee, for both market makers and takers. Further, Huobi Global has introduced a tiered fee system which offers competitively lower fees for high volume traders. VIP membership gives access to various fee reductions and other benefits.
Huobi Prime
Huobi Prime, the Launchpad platform which we can call Direct Premium Offering (DPO), does share some similarities with initial exchange offerings (IEO) like Binance Launchpad, but it is unique as it is not a fundraising platform, and any coins purchased on the platform are immediately deposited into the users’ wallets and tradable on Huobi Global. Huobi Prime offers its users early access to the coins of premium projects, which can be bought using its native crypto currency, the Huobi Token. To avoid dumping, Huobi has implemented an innovative idea of a period of tiered price limits.
Huobi FastTrack
Huobit FastTrack, rebranded from Huobi Prime Lite, is a new listing model. Wherein, all participants will have a direct say in what projects are listed on Huobi Global and when. In addition, winning voters will get access to quality tokens at below market rates. The program also provides much needed exposure and a straightforward listing process.
Huobi Wallet
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Huobi Wallet is the official mobile wallet of Huobi Group, a leading global digital asset financial service provider. It is a multi-chain asset management tool that provides native support for various types of blockchains and all of the ERC20 tokens. So far Huobi Wallet supports BTC, BCH, LTC, ETH, ETC, USDT and all ERC20 tokens.
Huobi wallet is the first wallet to expand support to cover seven stablecoins including, Paxos Standard Token (PAX), TrueUSD (TUSD), USD Coin (USDC), Gemini Dollar (GUSD), Dai (DAI), Stasis EURS (EURS), and Tether (USDT).
Huobi Wallet is built based on the core principle of security-first. The wallet gives back its users, complete control of their private keys. In simple terms, You own your assets. The wallet is backed up with mnemonics, so in future when you want to import your wallet, it’s just simple few clicks.
Currently, the wallet is compatible with both iOS and Android devices and you can download both from here (www.huobiwallet.com/en)
Huobi Chain
Huobi launched Huobi Chain’s Testnet (“the Testnet”) on February 29th 2020 (GMT+8). Huobi Chain is China’s autonomous cum compliant-ready blockchain platform, and is committed to providing a global, blockchain-based, digital asset infrastructure. Huobi Chain is committed to providing a high-performance, blockchain-based, global digital asset infrastructure. Once the Mainnet goes live, Huobi Chain will announce HT- related events: e.g. pledge HT to be a Super Node, etc.
HT Lock & Mine (Huobi Pool)
Huobi launched HT Lock and Mine operations on 25th July 2019 (GMT+8). Users who lock HT tokens receive daily HPT rewards. Specific reward quantity will depend on lock option period selected, quantity locked and Huobi Pool’ s mining hash power and daily float.
DPOS Rewards: All Huobi Global users with more than 1,000HPT holdings in their HBG account will receive DPOS mining rewards. Currently, token reward received under DPOS mining include EOS, TRX, CMT, ONG, IOST, ATOM, IRIS, LAMB。
Huobi Support
Users of the Huobi exchange can access 24/7 live chat and Huobi help center. Those facing issues can also open a support ticket to have their issue resolved by an expert representative immediately.
The Huobi Group has a very active YouTube channel, featuring Huobi Talk, where it posts user tutorials, detailed guides, and crypto currency information for traders.
What I like the most about Huobi
  1. An established platform that’s been operating since 2013, which is a long time in the crypto world.
  2. Highly secured with decentralized exchange structure, which helps to resist DDOS attacks. Huobi has never suffered a large hack.
  3. Huobi Security Reserve of 20000 BTC to compensate users’ loss of funds.
  4. Dedicated, fast and 24/7 customer support.
  5. Regulated in major jurisdictions.
  6. User interface is very smooth and clean.
  7. Over 230 crypto assets are available.
  8. User education program is good initiative.
  9. Separate trading desk for institution and firm size users.
  10. Very transparent about its operations, listings and projects.
  11. Huobi Wallet is secured and very easy to operate.
  12. Huobi mobile app is smooth and very easy to use.
  13. Competitive fees.
  14. Has taken serious steps towards avoiding wash trading.
  15. Impressive array of trading pairs.
  16. Has given more important on community participation, like voting for listing, mining pool, Huobi Knights program etc.
  17. I like Huobi Prime because of following reasons: -
(a) Purchased tokens are immediately deposited into user’s accounts,
(b) As projects launch exclusively through Huobi Prime from day one, all users get assets at the best price.
(c) Tiered price limits on the platform protect both investors and projects from immediate dump.
  1. Huobi screen projects and launches which are only the best. I don’t have to worry about poor or scammy projects.
  2. Burning of HT is a great move and it would benefit long term holders.
Join Huobi by click here: https://www.huobi.com/en-us/topic/invited/?invite_code=7zkb4
Visit
Huobi Global: https://www.huobi.com/en-us/
Join Indian Group: https://t.me/huobiglobalindia
Global telegram Channel: https://t.me/huobiglobalofficial
Join Huobi by click here: https://www.huobi.com/en-us/topic/invited/?invite_code=7zkb4
submitted by VinayTM to HuobiGlobal [link] [comments]

2019 in Review: Community, Crime, Courtcases, Craig & Consolidation

2019 in Review: Community, Crime, Courtcases, Craig & Consolidation

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2019 has been a tumultuous but amazing year for the development and advancement of blockchain technology. Following the rally to the all-time-highs at the end of 2017 and the intense infrastructure development and ongoing Bear Market of 2018 it was clear things were changing quickly. We are about to enter a new decase and the team at Aelf wanted to look back at 2019 and reflect on some of the events that occurred over the last year to see where the industry might be headed in 2020.

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Although the year has been considered a continuation of the 2018 bear market, it didn’t stop development, progression and a myriad of crazy events from occurring. This included the challenges associated with global regulations, the upcoming Bitcoin halving event in May 2020, announcement of the Facebook Libra and Telegram Open Network’s (TON) launch delay. This year also saw a myriad of debacles from self-proclaimed Bitcoin creator Craig Wright, the Justin Sun and Warren Buffet lunch situation, the recent claim of Twitter CEO Jack Dorsey’s goal to modify Twitter into a decentralized version of the platform, and President Trump’s Bitcoin statement, among others. Now let’s examine more of what took place during 2019 as we approach the start of the New Year in 2020.
The SEC, Telegram, Facebook Libra, Kik and Blockchain’s Global Regulatory Environment
Many of the world’s governments have been harsh towards blockchain technology in recent years. Particularly, the US Government and the Securities and Exchange Commission (SEC) have been very reluctant to ease the regulatory framework for blockchain development in the country. This has become more evident in 2019, with the SEC combatting many blockchain projects this year including the $1.7 billion-dollar token offering of the Telegram Open Network
and the Facebook Libra project. As well the SEC created controversy in a gruesome battle with Kik over its alleged illegal token offering that Kik has sworn to fight to their last breath.

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Many proponents of blockchain technology accuse the SEC of unfair policies to put a stranglehold on the development on blockchain in order to prevent the devaluation of the American monetary system. The reluctance for crypto exchanges to set up shop in the US is also becoming more prevalent because of the supposedly biased and unfavourable approach of the SEC. Nevertheless, there are also several major countries including China that have for the most part embraced the advancement of blockchain technology in 2019. China has also nearly finalized the development of the digital Chinese Yuan and announced that that country is going all in on blockchain development despite its sometimes anti-Bitcoin approach.
The Bitcoin Halving Event and its Ongoing Effect on Market Conditions
With the end of 2019 nearly upon us and the upcoming Bitcoin halving event set to take place during May of 2020 the market could be overdue for a bull market of mass proportions. Remember, the last bull market that took place was 2 years ago during December 2017 and was followed by an incredible dump from the all-time-high price of 20 thousand US Dollars to just 3300 USD in December 2018. For the most part, 2018 was a blood-bath for crypto markets and 2019 has not been all that much better. The price did briefly rally up to 14 thousand US Dollars during mid 2019 but has since been reduce by half with the Bitcoin price presently at just over 7000 US Dollars. Bitcoin was designed by its original creators with code written to mitigate the negative effects of inflation. In order to curb inflation, once every 4 years (or 210,000 blocks) the mining rewards that the network automatically generates are reduced in half.

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3 Additional Stories to Watch in 2020
In June, the CEO of Tron, Justin Sun purchased tickets through eBay for a charity auction to have lunch with Warren Buffet. Sun paid a record $4.56 million US Dollars in the process becoming the highest bid in the 20-year history of the event. The purpose of the lunch from Sun’s standpoint is to change Mr. Buffet’s viewpoint towards crypto and blockchain tech by inviting several blockchain industry leaders to help sway the famous investor’s perspective. Sun subsequently missed the lunch he scheduled in September because of a sudden bout with kidney stones. At this time, the community will have to wait and see when Sun and Buffet will meet in 2020. Stay tuned.
Back in December of 2015, Craig Wright claimed publicly to be the creator of Bitcoin, Satoshi Nakamoto. Most believe Wright was lying to gain more fame and recognition in the industry. On November 18th, 2018 Bitcoin SV hard forked from the Bitcoin Cash Network to create it own chain. As noted above, the disgruntled CEO of Bitcoin SV, has for years maintained he led the initial development of Bitcoin. During February 2018, Wright was the subject of a 5.118-Billion-dollar lawsuit by Dave Kleiman claiming that Wright defrauded Kleiman of Bitcoin while working on the initial development of the Bitcoin Network between 2009 and 2013. In August 2019, Wright was ordered by a court of law to pay half the 5.11 Billion in Bitcoin back to Kleiman. Throughout 2019, Wright launched lawsuits against Ethereum founder Vitalik Buterin, Bitcoin Cash’s Roger Ver and others for calling him a fraud. It seems likely Wright will continue his ongoing Satoshi rhetoric in 2020.

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The CEO of Twitter, Jack Dorsey recently stated that he has hired 5 full-time employees to modify the Twitter platform and make it increasingly decentralized. This may seem like a small step initially, but this project could be expanded easily by someone of Dorsey’s reputation and wealth in the technology industry. Dorsey himself has been a long-term proponent of blockchain technology and an investor in Bitcoin. Binance CEO, Changpeng Zhao, recently offered to help Dorsey make this dream come to fruition. Additionally, Morgan Creek Capital founder Anthony Pompliano supported Dorsey’s statement noting that, “Jack Dorsey may understand the future better than any entrepreneur on the planet right now.”
Conclusion
This year we saw Kik, Telegram and Facebook Libra face fierce backlash from the most powerful regulatory body in the world, the SEC. We saw the Chinese government announce that they are all in on blockchain development and declare the upcoming launch of their own centralized digital Chinese Yuan. Justin Sun postponed his 4.56-million-dollar lunch with billionaire investor Warren Buffet because of health issues, while Jack Dorsey the CEO of Twitter proclaimed a more decentralized and open version of Twitter to prevent some of the abuse on the platform.
In 2019, the 4-year long Craig Wright and Satoshi Nakamoto saga continued, and we finally are moving closer to the much-anticipated Bitcoin halving event of May 2020 that could change the trajectory of the Bitcoin price for much of 2020 and 2021. It is clear 2019 has been an incredible year for the blockchain industry. With no shortage of uncertainty and scepticism in the short-term, it is likely that 2019 will pale in comparison to the developments of 2020. As we approach 2020, the industry will continue to expand towards mass adoption and the mainstream evolution of blockchain technology. Nevertheless, with the global regulatory blockchain environment evolving in many areas across the world, the uncertainty in the United States remains stronger than ever. There is no telling what will happen in this regard and what will happen with Bitcoin and this amazing revolution in 2020 and beyond.
Merry Christmas and Happy Holidays from the Aelf Blockchain team and a Happy 2020 to all our community members!! Thank You
submitted by Floris-Jan to aelfofficial [link] [comments]

The Biggest Scams In The Crypto History: Part 2

Here’s the sequel of our previous article. You wanted — you got it. Let’s roll!
OneCoin
OneCoin is a good example of a Ponzi scheme. In 2015, the Indian company One Coin Limited began to issue digital currency without a blockchain and decentralization. The old-school MLM (Multi-Level Marketing) strategy was used for the distribution of coins.
The company was selling a wide range of training packages on crypto trading, mining and successful life. There were textbooks, presentations, and other rubbish, among which were OneCoin tokens. They were supposed to allow users to get even more tokens. But the thing was that only One Coin Limited had exclusive rights to issue of coinage. So there were no other options for mining this coin.
On the international conference the founder of OneCoin, Ruja Ignatova, presents these tokens as the Bitcoin killer. See how easy it is to fool users?
Over the years, the company has spread its network globally. And only in 2017, the project gets into a number of investigations and restrictions. Owners and employees of the company more and more often could not answer questions from investors and carried on with the nonsense about “a bright crypto-future.”
Finally, regulators and banks in Italy, Germany, Hungary, Belize, Thailand and other countries have banned the trade of OneCoin and warned users not to get engaged with this company.
In early March 2019, the current OneCoin cryptocurrency leader Konstantin Ignatov, brother of Ruja Ignatova, was arrested at Los Angeles airport. He is accused of fraud and creating a financial pyramid.
According to the United States Attorney’s Office, Ignatov and his sister misled investors all over the world, and as a result, the people invested billions of dollars in a fraud scheme. They are accused of building a billion-dollar cryptocurrency company, based entirely on deception.
FBI Assistant Director-in-Charge William Sweeney, Jr. said:
“OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators. Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators.”
Despite all hardships, One Coin Limited continues to work. If you check out their website you will find everything there: a meaningless text about the benefits of a “revolutionary” token and other signs of a high-quality international project that deceives people.
QuadrigaCX
It’s not possible to take your savings to the grave, right? More than 100,000 clients of QuadrigaCX are ready to argue with that. So let’s try to recount the details of this strange story.
QuadrigaCX was created in 2013 and was Canada’s largest cryptocurrency exchange.
In December 2018, Gerald Cotten (founder and CEO of the QuadrigaCX) and his wife — Jennifer Robertson, were in India on their honeymoon. During this trip Cotten suddenly passed away from Crohn’s disease. After his death, it turned out that Gerald was the only one who had access to cold wallets of the exchange platform.
Changpeng Zhao (Binance CEO) comments this situation on Twitter:
“That’s sad. There are many solutions to split private keys or signing to achieve 3/5, 5/7 etc. Never neglect security. Also, never have CEO carry private keys. Bad on many levels.”
On January 25, 2019 (that is, almost two months after Cotten’s death) a special meeting was convened to appoint QuadrigaCX’s new directors. As a result, the inconsolable widow Jennifer Robertson, her stepfather Thomas Beazley and Jack Martel were elected to take charge of a company. By the way, this meeting was held by a conference call as the widow was very busy by hastily selling the property of her deceased husband. Indeed, there was something to deal with: a yacht, a plane, and several houses. Also, dearly departed managed to take care of his Chihuahuas by opening a special trust account for them in the amount of $100,000 (which is interesting, as Cotten did not show such forethought about the clients of his company).
It’s worth to mention that the clients of QuadrigaCX had problems with the exchange for a long time — mainly related to the withdrawal of funds. The first wake-up calls took place in March 2018, when press reports negatively about delays in the withdrawal of funds the total amount of which exceeded $100,000. But that’s all just moonshine compared to the fact that in June 2017 the exchange platform lost about 15 million Canadian dollars — as explained to the community, due to a bug in the smart contract. As a result, the Canadian Imperial Bank of Commerce (CIBC) froze about $22 million in QuadrigaCX accounts. This happened in November 2018, and for all users, it would have meant the end of a remarkable business but Mr. Cotten wasn’t explaining the problems to customers, wasn’t trying to solve them, and so on. He had just married and went on a honeymoon trip to pass away exactly two weeks after freezing the accounts.
As the inconsolable widow stated in her testimony:
“To the best of my knowledge, most of the businesses of these companies was being conducted by Gerry whenever and wherever he and his computer were located”.
In February 2019, the head of Coinbase — Brian Armstrong unveiled the results of an independent investigation into the QuadrigaCX. He reported on his Twitter account the following:
“Sequence of events suggests this was a mismanagement with later attempt to cover for it.” “This implies that at least few people inside Qadriga knew that they were running fractional. If so, then it’s possible that untimely death of their CEO was used as an outlet to let the company sink”.
Brian Armstrong stressed that QuadrigaCX users started complaining about problems with withdrawing money long before Gerald Cotten’s death. Thus, the company management decided to invent a story about private keys on the laptop of the CEO to hide the financial insolvency, one of the reasons for which could be inefficient management.
Nowadays, the Canadian cryptocurrency exchange QuadrigaCX is officially bankrupt. Users of the closed Quadriga are now leading legal battles in order to recover their funds. The total amount of which is about $190 million in crypto. The exact circumstances of the disappearance of user deposits remain uncertain.
Do you think the story with QuadrigaCX was Exit Scam or Mismanagement?
Bitfinex
One of the largest crypto scandals of the year broke out on April 30, 2019. The New York State Attorney General’s Office has filed serious accusations against the biggest exchange platform — Bitfinex. According to Leticia James, the exchange platform used the reserves of Tether, an affiliated company to cover up a loss of $850 million.
Questions to Tether have been in the air for a long time. In January 2018, the critics of the main stablecoin assumed that the company, in fact, produced more coins than it actually could sustain. Some critics accused the Bitfinex in fraud and manipulation of Tether’s rate and influenced through it on the price of Bitcoin.
So what’s up with the Bitfinex? Investigators of the prosecutor’s office claim that the lost money belonged to the clients and iFinex corporation. That is why, back in October 2018, Bitfinex started having problems with the withdrawal of the funds: the clients complained about long response time and a delay in receiving currency. According to the authorities, Bitfinex transferred $850 million to Crypto Capital Corp., the payment company. The Tether reserves were used to fill the gap, but this information was not disclosed to the public. According to the first data, Tether provided funding in the amount of at least $700 million for this purposes. Withdrawing this amount of currency severely shook faith in the idea that Tether tokens are indeed fully backed by dollars.
And then Bitfinex had extraordinary difficulties in satisfying the withdrawal demands from the platform since Crypto Capital refused to process withdrawals or simply could not return any funds. One of the senior Bitfinex executives opened a can of worms by writing the following:
“Please understand all this could be extremely dangerous for everybody, the entire crypto community. BTC could tank to below 1k if we don’t act quickly.”
Soon after it was known about the serious accusations against companies, Bitfinex’s users began to panic. They started buying Bitcoin and trying to get rid of their assets in USDT. As a result, BTC was trading $350+ (6.75%) more expensive than the crypto market average.
Tether and Bitfinex published a joint statement on their official blogs in response to the allegations of missing funds. The posts allege that the companies did not receive any preliminary warnings, as well as that lawsuits from the New York Prosecutor General’s Office were “riddled with false assertions”.
According to the latest information, Bitfinex is supposed to release its own token and attract $1 billion in Tether through IEO.
What do you think about these scandals and scams? Tell us your thoughts in the comments below.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to BitcoinCA [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to btc [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us onMedium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to CryptoMarkets [link] [comments]

Major Australian Exchange Expands to Singapore for Crypto-Friendly Regs

Major Australian Exchange Expands to Singapore for Crypto-Friendly Regs

https://preview.redd.it/udcjgyuzauc41.png?width=710&format=png&auto=webp&s=017f75489d2cd2c34ea58824ff771959bdfaf90c
Independent Reserve, one of the largest cryptocurrency exchanges in Australia, is expanding to Singapore after an "overwhelmingly positive" response from the regulator.
Adrian Przelozny, CEO and founder of the Sydney-based exchange, announced Friday it had expanded its trading services to users in Singapore, saying in a statement that his team "felt the time was right to make this move."
Przelozny referenced "a number of positive moves by Singaporean regulators" as part of his reasoning.
Independent Reserve offers a host of retail and institutional trading features, including a spot marketplace and over-the-counter (OTC) service. The exchange introduced insurance coverage against theft or loss of digital assets held in a client's account in February 2019.
Established in 2013, Independent Reserve claims it has more than 120,000 customers and 8,000 self-managed super funds (SMSFs), a private superannuation fund operated by its members and regulated by Australian law.
Singapore adopted an open-arms approach to cryptocurrency regulation when the Monetary Authority of Singapore (MAS), the country's de facto central bank and financial regulator, created a legal framework – the 2019 Payment Services Act – that effectively brought all cryptocurrency payments providers under its jurisdiction.
The Payments Services Act was one of the main factors that influenced the Independent Reserve's decision to move to Singapore, according to Przelozny.
"Having worked closely with Australian regulators, and as the only Australian exchange to have insurance on crypto assets, the response we’ve received so far from the Singapore market has been overwhelmingly positive," Przelozny said.
A number of other exchanges, attracted to Singapore's regulatory regime, have also expressed an interest in moving to the country. Binance announced plans to set up a new fiat-to-crypto exchange in the country last year. A group of ex-Morgan Stanley bankers launched a crypto derivatives exchange in December after MAS published a proposal to regulate these types of financial products.
New Singapore users will now have access to an institutional trading platform for cryptocurrencies including bitcoin, ether, litecoin and XRP. Singaporean dollar trading pairs will be integrated into its platform and will operate as a wholly separate entity from the Australian-based platform, Independent Reserve confirmed.
submitted by Oleg0330 to u/Oleg0330 [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us onMedium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to BitcoinAUS [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us onMedium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to bitcoin_uncensored [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to Anarcho_Capitalism [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us onMedium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to CryptoCurrencies [link] [comments]

The Biggest Scams In The Crypto History: Part 2

Here’s the sequel of our previous article. You wanted — you got it. Let’s roll!
OneCoin
OneCoin is a good example of a Ponzi scheme. In 2015, the Indian company One Coin Limited began to issue digital currency without a blockchain and decentralization. The old-school MLM (Multi-Level Marketing) strategy was used for the distribution of coins.
The company was selling a wide range of training packages on crypto trading, mining and successful life. There were textbooks, presentations, and other rubbish, among which were OneCoin tokens. They were supposed to allow users to get even more tokens. But the thing was that only One Coin Limited had exclusive rights to issue of coinage. So there were no other options for mining this coin.
On the international conference the founder of OneCoin, Ruja Ignatova, presents these tokens as the Bitcoin killer. See how easy it is to fool users?
Over the years, the company has spread its network globally. And only in 2017, the project gets into a number of investigations and restrictions. Owners and employees of the company more and more often could not answer questions from investors and carried on with the nonsense about “a bright crypto-future.”
Finally, regulators and banks in Italy, Germany, Hungary, Belize, Thailand and other countries have banned the trade of OneCoin and warned users not to get engaged with this company.
In early March 2019, the current OneCoin cryptocurrency leader Konstantin Ignatov, brother of Ruja Ignatova, was arrested at Los Angeles airport. He is accused of fraud and creating a financial pyramid.
According to the United States Attorney’s Office, Ignatov and his sister misled investors all over the world, and as a result, the people invested billions of dollars in a fraud scheme. They are accused of building a billion-dollar cryptocurrency company, based entirely on deception.
FBI Assistant Director-in-Charge William Sweeney, Jr. said:
“OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators. Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators.”
Despite all hardships, One Coin Limited continues to work. If you check out their website you will find everything there: a meaningless text about the benefits of a “revolutionary” token and other signs of a high-quality international project that deceives people.
QuadrigaCX
It’s not possible to take your savings to the grave, right? More than 100,000 clients of QuadrigaCX are ready to argue with that. So let’s try to recount the details of this strange story.
QuadrigaCX was created in 2013 and was Canada’s largest cryptocurrency exchange.
In December 2018, Gerald Cotten (founder and CEO of the QuadrigaCX) and his wife — Jennifer Robertson, were in India on their honeymoon. During this trip Cotten suddenly passed away from Crohn’s disease. After his death, it turned out that Gerald was the only one who had access to cold wallets of the exchange platform.
Changpeng Zhao (Binance CEO) comments this situation on Twitter:
“That’s sad. There are many solutions to split private keys or signing to achieve 3/5, 5/7 etc. Never neglect security. Also, never have CEO carry private keys. Bad on many levels.”
On January 25, 2019 (that is, almost two months after Cotten’s death) a special meeting was convened to appoint QuadrigaCX’s new directors. As a result, the inconsolable widow Jennifer Robertson, her stepfather Thomas Beazley and Jack Martel were elected to take charge of a company. By the way, this meeting was held by a conference call as the widow was very busy by hastily selling the property of her deceased husband. Indeed, there was something to deal with: a yacht, a plane, and several houses. Also, dearly departed managed to take care of his Chihuahuas by opening a special trust account for them in the amount of $100,000 (which is interesting, as Cotten did not show such forethought about the clients of his company).
It’s worth to mention that the clients of QuadrigaCX had problems with the exchange for a long time — mainly related to the withdrawal of funds. The first wake-up calls took place in March 2018, when press reports negatively about delays in the withdrawal of funds the total amount of which exceeded $100,000. But that’s all just moonshine compared to the fact that in June 2017 the exchange platform lost about 15 million Canadian dollars — as explained to the community, due to a bug in the smart contract. As a result, the Canadian Imperial Bank of Commerce (CIBC) froze about $22 million in QuadrigaCX accounts. This happened in November 2018, and for all users, it would have meant the end of a remarkable business but Mr. Cotten wasn’t explaining the problems to customers, wasn’t trying to solve them, and so on. He had just married and went on a honeymoon trip to pass away exactly two weeks after freezing the accounts.
As the inconsolable widow stated in her testimony:
“To the best of my knowledge, most of the businesses of these companies was being conducted by Gerry whenever and wherever he and his computer were located”.
In February 2019, the head of Coinbase — Brian Armstrong unveiled the results of an independent investigation into the QuadrigaCX. He reported on his Twitter account the following:
“Sequence of events suggests this was a mismanagement with later attempt to cover for it.” “This implies that at least few people inside Qadriga knew that they were running fractional. If so, then it’s possible that untimely death of their CEO was used as an outlet to let the company sink”.
Brian Armstrong stressed that QuadrigaCX users started complaining about problems with withdrawing money long before Gerald Cotten’s death. Thus, the company management decided to invent a story about private keys on the laptop of the CEO to hide the financial insolvency, one of the reasons for which could be inefficient management.
Nowadays, the Canadian cryptocurrency exchange QuadrigaCX is officially bankrupt. Users of the closed Quadriga are now leading legal battles in order to recover their funds. The total amount of which is about $190 million in crypto. The exact circumstances of the disappearance of user deposits remain uncertain.
Do you think the story with QuadrigaCX was Exit Scam or Mismanagement?
Bitfinex
One of the largest crypto scandals of the year broke out on April 30, 2019. The New York State Attorney General’s Office has filed serious accusations against the biggest exchange platform — Bitfinex. According to Leticia James, the exchange platform used the reserves of Tether, an affiliated company to cover up a loss of $850 million.
Questions to Tether have been in the air for a long time. In January 2018, the critics of the main stablecoin assumed that the company, in fact, produced more coins than it actually could sustain. Some critics accused the Bitfinex in fraud and manipulation of Tether’s rate and influenced through it on the price of Bitcoin.
So what’s up with the Bitfinex? Investigators of the prosecutor’s office claim that the lost money belonged to the clients and iFinex corporation. That is why, back in October 2018, Bitfinex started having problems with the withdrawal of the funds: the clients complained about long response time and a delay in receiving currency. According to the authorities, Bitfinex transferred $850 million to Crypto Capital Corp., the payment company. The Tether reserves were used to fill the gap, but this information was not disclosed to the public. According to the first data, Tether provided funding in the amount of at least $700 million for this purposes. Withdrawing this amount of currency severely shook faith in the idea that Tether tokens are indeed fully backed by dollars.
And then Bitfinex had extraordinary difficulties in satisfying the withdrawal demands from the platform since Crypto Capital refused to process withdrawals or simply could not return any funds. One of the senior Bitfinex executives opened a can of worms by writing the following:
“Please understand all this could be extremely dangerous for everybody, the entire crypto community. BTC could tank to below 1k if we don’t act quickly.”
Soon after it was known about the serious accusations against companies, Bitfinex’s users began to panic. They started buying Bitcoin and trying to get rid of their assets in USDT. As a result, BTC was trading $350+ (6.75%) more expensive than the crypto market average.
Tether and Bitfinex published a joint statement on their official blogs in response to the allegations of missing funds. The posts allege that the companies did not receive any preliminary warnings, as well as that lawsuits from the New York Prosecutor General’s Office were “riddled with false assertions”.
According to the latest information, Bitfinex is supposed to release its own token and attract $1 billion in Tether through IEO.
What do you think about these scandals and scams? Tell us your thoughts in the comments below.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to Anarcho_Capitalism [link] [comments]

Craig Wright: The Real Satoshi Or The Real Scammer

Today we will focus on Craig Wright, the person who took the liberty to declare himself as true Satoshi Nakamoto and who tries to take all the credit of the creator of Bitcoin, the main cryptocurrency.
Bitcoin is considered to be one of the progressive forms of payments — absolutely transparent, distributed and resistant to external influence. Its creator must be at least a genius, and most importantly, a billionaire — because a significant amount of Bitcoins mined in the early stages of the project is concentrated in his hands. It is known that Satoshi Nakamoto retired from the project around 2010 and no one knows exactly who is he really is.
In December 2015, two American publications — Gizmodo and Wired — published huge investigations aimed at finding a man who has been hiding under the name of Satoshi Nakamoto since 2008. Clues led journalists to Craig Wright, a 45-year-old entrepreneur from Australia, which on many grounds could be reckoned as a true Satoshi. For example, there were publications about the ideas of a decentralized payment system similar to Bitcoin in Wright’s blog in 2008, a year before Satoshi Nakamoto himself created BTC. Another interesting fact is that in 2013 he invested more than one million BTC in the project to create his Bitcoin Bank — supposedly only the creator of Bitcoin could own such amount of coins.
In correspondence with the publications, Craig indirectly confirmed that he is Nakamoto. At the same time, in December, 2015, Wright said that he was not going to talk about himself publicly. But almost six months later Craig Wright appeared on the front pages. Unexpectedly for many, Craig decides to give an interview to the BBC and The Economist, in which once again, but already publicly assures that he is Satoshi Nakamoto. As the main proof, Wright provided a “cryptographic signature” from the private key used in the first Bitcoin transactions by Satoshi Nakamoto himself.
Since then, Dr. Wright did not give up his words and continued to tell everyone that he is Satoshi. Later Craig said that he would sue anyone who slanders him and generally denies his merits in the creation of Bitcoin.
And while he was just talking around declaring himself as the creator of BTC — all this was tolerated and ignored. But when Wright began to threaten all who disagreed with his lies, the crypto-community decided to teach him a lesson.
Binance CEO Changpeng Zhao wrote the following on his Twitter:
“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
His example was followed by some other exchanges, like ShapeShift and Kraken, which also announced the delisting of BSV.
Blogger and ex-hacker Nik Cubrilovic and cybersecurity researcher Dan Kaminsky published their own investigations in which Wright is exposed as a great deceiver. Enthusiasts also investigated the activities of Wright and his companies. It turned out that the purpose of the existence of many of them was to draw tax refunds and the operation of other benefits that are provided to companies focused on research activities.
When an entrepreneur’s business started to decline and companies have earned an unpleasant reputation, Wright decides to appear before the public as Satoshi Nakamoto. According to Cubrilovic’s opinion, this could improve Craig’s affairs, attract new investments and add excitement since it is known that Nakamoto owns large amounts of Bitcoins.
Craig’s opponents also notice one detail: Satoshi Nakamoto would certainly stand on the side of the Bitcoin community that would like to leave the BTC system in its original form. However, in a conversation with The Economist Wright drew a different picture: if Bitcoin power can be repeatedly scaled, then it will be able to replace not only all banking systems but many others, becoming a truly mainstream currency.
In this case, the regulation and support of such cryptocurrency would have to be taken up by large organizations — from banks, already interested in using blockchain technology, to entire states. If this happens, Bitcoin will really replace conventional currency but will lose its independence — the main reason for its creation.
Here are some interesting facts about Craig Wright:
  1. In the early 1990s, worked as a sauce cook at a French restaurant.
  2. Wright filed about 114 Blockchain-related patents since 2017
  3. Craig Wright has his own companies, for example, the Tulip Trading company, which has been very successful in developing supercomputers, as well as DeMorgan Ltd and Panopticrypt Pty Ltd, engaged in various operations with cryptocurrencies. But Wright’s main project is, of course, his own Bitcoin SV (Satoshi Vision), which appeared as a result of the fork of Bitcoin Cash in November 2018. The fork’s reason was the dissatisfaction of developers and miners with a size of the blockchain that was originally written in code. Transactions were processed very slowly, so Bitcoin Cash ABC appeared, where the size was increased to 8 megabytes. But this was not enough for Craig Wright, and he initiated the second fork, setting the block size to 128 megabytes in the currency he was in charge of.
  4. In February 2018 Wright was sued by David Kleiman — a computer scientist and cyber-security expert suspected to be one of the developers behind the Bitcoin and the blockchain tech. Kleiman said that Wright stole between 550,000 and 1,100,000 BTC.
  5. In 2018, Craig Wright was sued, accusing him of forging contracts and signatures in order to assign Bitcoins in the amount of $5 billion.
  6. In October 2017, Cointelegraph published a list of the most influential individuals from the blockchain industry. Not finding his name in it, Craig Wright appealed to the media with a comment about their negative mood regarding his personality. At the same time in the Cointelegraph ranking was the name Satoshi Nakamoto. This situation was noted as Wright’s recognition that he is not the creator of Bitcoin.
  7. Craig is suspected of repeatedly conducting operations to cash large amounts of BTC. During one of the checks, he brought the family from his native Sydney and moved to London to continue working and creating his own business.
What do you think about Craig Wright? Write your opinion in the comments below!
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us onMedium,Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to CryptoNewsandTalk [link] [comments]

You are being LIED TO about BITCOIN 🚨DON'T BE FOOLED ... BITCOIN & GLOBAL MARKETS FALLING!! Is the Pandemic to BLAME?! $250k Still Possible? Cryptocurrency News 3rd December Doge Coin now on Binance - World's Favourite Crypto - Review in Hindi [URGENT] Binance US Block Soon - Alternative Exchanges To Use How to SHORT or LONG Bitcoin with Leverage  BINANCE FUTURES TUTORIAL  EXPLAINED for Beginners CRYPTO NEWS:JP MORGAN/CZ BINANCE APOLLO DEC 3RD!!APOLLO AFRICA EXPLODING! This Line Is Critical For Bitcoin + Binance Scandal BINANCE HACKED!!  $40,000,000 STOLEN!

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