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cryptofreak

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Everything posted by cryptofreak

  1. cryptofreak

    Did you cashout your initial investment?

    I'm sorry if this is posted in the wrong section, but I'm new here and this forum seems suitable to ask. How many of you have pulled out your initial investment? If not, why not? I'm in crypto since 2015 and I cashed out my initial investment in early 2017.
  2. As revealed by a press release published in January, Blockchain tech firm, Bitfury is planning to launch mining centers in Paraguay. Bitfury formed a partnership with Commons Foundation, a peer-to-peer knowledge commons research firm based in South Korea to launch some transaction processing sites which will utilize Bitfury’s BlockBox AC mobile data centers in Paraguay. The press release also reported that, the project holds just a fraction of a greater initiative from Commons referred to as “Golden Goose” whose focus is to expand cryptocurrency and blockchain innovation in Spanish-speaking countries. The mining facilities in Paraguay will take around 200,000 square meters and electricity will be provided by a 500MW power station. Bitfury also revealed that the energy used by the mining centers will be renewable as Paraguay is well known to house power plant Itaipu, the largest operational hydroelectric energy producer in the world. Furthermore, Commons Foundation has revealed its plans to open a global crypto exchange in Paraguay later in the year and provide a Golden Goose token for participants. The crypto exchange will be making use of the Crystal analytics platform of Bitfury in order to adhere to the anti-Money Laundering (AML) and the Know Your Customer (KYC) policies. Both parties, including the Paraguayan officials said they strongly believe the new initiatives will attract new investors to the country and play a vital role in building a blockchain ecosystem in Latin America.
  3. cryptofreak

    tradeandholder - web developer, crypto enthusiast

    Hi, tell us something about yourself
  4. cryptofreak

    OKEx is creating a blockchain

    OKEx (a Malta-based crypto exchange) has revealed its plans to launch a decentralized exchange on its own blockchain. OKEx announced that its operations team has been developing OKChain (a blockchain), which will provide the underlying tech required for OKDEx (its first decentralized exchange). According to the company, OKChain is said to be in its final development stage and in June, a test network launch will take place. As a result of demand, the exchange said that, by April ending, it will put OKB onto an Ethereum ERC-20 standard blockchain, and as soon as the network is stable, it will move all tokens to OKChain. The announcement says: It seems exchanges now see decentralized exchange as a necessary thing they must possess. Binance, which is the largest crypto exchange in the world by adjusted trading volume, is also set to launch a DEX on its own blockchain network.
  5. cryptofreak

    The Cosmos Mainnet has launched

    What is COSMOS? Cosmos is a project developed with the idea that, the same way there are so many internet applications, there should also be many blockchains. The focus is to deliver a network of interoperable blockchains for the industry, which will be scalable and independent. With this, Cosmos claims to have found a solution to the hardest problems faced by blockchains. The COSMOS team have the belief that blockchains should be able to communicate with each other. Their network solves this issue and has provided a foundation of the new token economy. How? 5 Years so far The birth of Cosmos can be dated back to 2014 (five years ago) when Jae Kwon observed that the: “Safety-favoring nature of classical Byzantine Fault Tolerant (BFT) consensus algorithms would allow us to use Proof of Stake (PoS) for Sybil resistance in a public blockchain context without the need for external sources of pseudorandomness.” One year later, Ethan Buchman joined him. They set out to accomplish their quest to prove that a secure public blockchain could make use of the BTF system running on Proof of Stake. And to achieve this, the Cosmos Hub was created which was launched officially yesterday. They are focused at providing a robust and scalable infrastructure and developer hub without making use of Proof of Work: “The vision is to enable communication and connectivity among thousands of cryptocurrency systems, allowing the network to scale without utilizing Proof-of-Work.” They both created Tendermint core as a BFT consensus engine to provide the first layer for any PoS blockchain to build on. Cosmos, to be more developer friendly and accessible, created Cosmos SDK claiming to have reduced the barrier to entry for developing DApps. The team said that, Cosmos is not like Ruby on Rails or Django for blockchain. They also said that it is very easy to use and it helps programmers easily customize their DApps for their business. Some vital facts that give Cosmos credibility The Cosmos Hub blockchain has the industry record of being the first public BFT blockchain making use of PoS. In addition, some big names are in support of this project; investors like Bain Capital and Paradigm. The Swiss Interchain Foundation (ICF) has also partnered on R&D with the project.
  6. cryptofreak

    How Initial Coin Offerings came to be

    “Fundraising on the blockchain is one of the main applications for crypto. That's very important for this industry to grow; we got to help entrepreneurs who build things in our industry.” This was said by Binance CEO, Changpeng Zhao (CZ) who might have started a trend that some are referring to as Initial Exchange Offerings (IEOs). Just recently, many were shocked when a token without much recognition jumped in 3 days by 1000%. Somehow, BitTorrent has done the same thing. Chairman of the Securities and Exchange Commission (SEC) Jay Clayton said: However, some seem to have plans to make him irrelevant using a combination of centralized strength in a decentralized ecosystem. At first, projects create a website that market an ICO with virtually no one performing any vetting, asides perhaps a crypto journalist here or there and even then at a surface view. Now through Binance's Launchpad, they've achieved something new. CZ says: We have no idea of any published evaluation criteria, but they plan doing one or two IEOs every month. On Binance, they are normally purchased with the BNB token and at times with btc or eth. This has been very lucrative, with BNB worth some $2.2 billion. Others want in, so now we have a Huobi token. They say, this is not a launchpad. Others refer to it as one. If a token released by a project can be purchased with your own token, then naturally, your token will be in demand and there'll be a use case for it. This is one good reason why BNB has soared in weeks, risen four times or more. Another one included is BitMax. This is completely different from BitMex because they are not related in any way. What we can see here is something entirely different. As a sort of fees rebate, people are given BTMX tokens. We are yet to know if this is a security, but with respect to the quantity of the innovative energy it occupies in this space, it will be difficult to keep up. Some westerners have cowered infront of these old bureaucrats, but this space is a global one and it still has some smart cypherpunks. What we can see is a solution that looks into the problem of any random person putting up some site, since now exchanges will vet, just the same way we see a solution to arcane restrictions since these are global exchanges and would definitely seek to adhere to the crowdfunding laws. Here's something you need to know: “The users from the following countries and regions are prohibited to participate in the DOS promotion: United States, Balkans region, Belarus, Myanmar, Côte d'Ivoire, Cuba, Democratic Republic of the Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syrian Arab Republic, Zimbabwe, Algeria, Bangladesh, Bolivia, Cambodia, Ecuador, Nepal, Afghanistan, Burundi, Central African Republic, China, Ethiopia, Guinea, Guinea-Bissau, Lebanon, Sri Lanka, Libya, Serbia, Somalia, South Sudan, Thailand, Tunisia, Trinidad and Tobago, Ukraine, Uganda, Venezuela, Yemen.” Governments generally, to the surprise of many, have backed this space very strongly. Infact, some of them can be referred to as allies. For example, the government of England before the Brexit mess, Switzerland, Estonia and from our view, even the Trump administration.
  7. Ethstats.net revealed tha Ethereum's Constantinople and St. Petersburg network upgrades took place. In accordance with the schedule released previously, the updates were live at block 7,280,000 of the main network. The two names of the two originally separate updates of the upgrade has now been merged as one. According to ethernodes.org, the update has not been adopted by all the users of Ethereum. Just 22.3% of Geth and Parity clients are currently running the Constantinople-compliant version. Constantinople aims to bring great Improvements to the platform such as lesser fees charged for some transactions performed on the Ethereum network. As reported earlier, there was a delay in the Constantinople hard fork in January because a new vulnerability was discovered. The St. Petersburg upgrade was designed to clear off the initial update, Ethereum Improvement Proposal (EIP) 1283, from the test networks of Ethereum, since some vulnerability was found in the EIP. In January, major crypto exchange in the United States like Coinbase and Kraken were included among those supporting the upgrade of Ethereum. Other exchanges who have been monitoring the process even before the first attempt of implementation are Binance, Huobi and OKEx.
  8. Crypto lovers on Twitter, Reddit and even on etherscan’s comment section are having a field day after an anonymous crypto user had to pay a transaction fee of $308,000 just to send $14.71. Due to this fact, so many have become inquisitive to know what led to such. Some said that the users must have made a mistake paying the high fee, probably someone old that is not used to making crypto transfers. However, taking a closer look at the same public address, we could see that these kind of transactions have occurred before. For instance, an hour before the initial payment, 420 ethers ($61,744.20) was paid to send 0.02 ethers ($2.94). Also 210 ethers ($30,857.40) was paid as fees to transfer 0.01 ether ($1.47) and 840 ether ($122,715.60) to send 0.02 ether ($2.92). Could this error be made despite the fact that the default gas limit has been set to 2100? This sounds absurd. Nevertheless, the wallet used for the transaction currently holds about $86,000 and has already performed 17,694 transactions from it. Money Laundering Obviously, cryptos are usually used as a medium for money laundering, and due to its high occurrence recently, it is not surprising that this thought comes to mind. Therefore, there is an assumption that whoever sent the cash is in search of ways to hold on to the funds which they’ve obtained through illegal means without leaving traces. Concerning this case, the sender must have decided to spend so much in fees, but decided not to broadcast the transaction over the network. Due to this, other miners won’t locate it because they only get rewarded for taking first place in locating the next block. This tells us that, the block is still open and the sender can still claim their $308,000. High speed of transaction Paying such a high amount for fee can also be due to the fact that the sender needed the payment to be delivered within seconds. It is well known that the faster your transaction on the Ethereum or Bitcoin blockchain, the higher the fees. However, this still makes no sense, because the amount involved in the transaction was small. Asides these, Reddit users have recommended some blockchains that offer high transaction speed without charging a fee. Nano is well recognized in this regard as it carries out transactions within 7-8 seconds; however, it still makes use of user's resources like bandwidth and electricity to facilitate such payments.
  9. Afri Schoedon (Ethereum core developer) due to online criticism is withdrawing from the project. On Sunday, he tweeted that he will “no longer respond on Gitter, Skype, Discord, Slack, Wire, Twitter and Reddit.” By saying this, he meant he will no longer give answers to general technical questions or contribution requests directly from the public. Later, he then added that, this will mark his exit from the project completely. Having being a major contributor to the ethereum codebase for over three years now, other developers had to respond to his comments, voicing their outrage over the actions that led to his decision. Hudson Jameson (community relations manager for the Ethereum Foundation) on Twitter stated that: The comments follow the Frank remarks of Schoedon on Thursday, where he drew comparison between Serenity (Ethereum’s scaling technology) and Polkadot (blockchain interoperability protocol). On Twitter, he wrote: “‘Polkadot delivers what Serenity ought to be. Change my mind.” Some took this as a direct attack against Ethereum, and for this, Schoedon was called out on Reddit and Twitter for what some saw as a “conflict of interest.” Schoedon is the release manager for an Ethereum software managed by Parity (a blockchain startup and company behind the building of Polkadot). Schoedon on Friday tweeted denying any allegations of malicious intentions: “I want to clarify that I put out this tweet to stir discussion, not to cement a narrative.” Since then, Yaz Khoury (Ethereum Classic Cooperative director for Classic operations) on Twitter warned that:
  10. cryptofreak

    Making money with ETH-based games

    Blockchain can transform the gaming industry with the use of NFTs- (non fungible tokens). Of recent, ConsenSys media outlined 16 NFT-based games which users can play and generate some funds for themselves. They revealed that, as the blockchain community is seriously talking about upgrades for the network, scalability and adoption, blockchain-based games are quietly offering some proof that the blockchain tech can transform an industry. ConsenSys went ahead to present a list of games making use of non-fungible tokens and bringing in new and unique tokens to purchase, sell and trade on Ethereum. They listed some category of games, starting with “Collectible and Trading Games.” An example here is CryptoKitties, a well-known Ethereum-based game that permits users to purchase, breed and trade unique digital cats. Ethermon is another. Players of this game capture, train and sell creatures referred to as Mons. Another is PlasmaBears, a game where digital bears can be built, sold and traded, or sent on adventures to find wearable assets. 0X Universe is another game in this category that permits players to build a spaceship and explore the Galaxy, colonize new planets and sell resources. Another category highlighted was “Battling games” like Chibi fighters where users can fight and trade digital warriors and get weapons. Others in this category include: Hyperdragons where players breed and train digital dragons and MyCryptoHeroes whereby players train and combat historical figures. Other well-known games in this category include Blockchain Cuties, God’s unchained, Axie infinity and world of ether. The third category is “Strategy games” like Decentraland. Here users acquire a plot of land where they build and trade assets. CryptoAssault is another, where players can command an army of their own in a 3D world, and the last in this category is CryptoBaseball where players can make use of tokens to play baseball. The last category listed by ConsenSys was “Artwork Trading” where non-fungible tokens are utilized in artwork trading apps like SuperRare and CryptoSketches to purchase, trade and sell unique digital art.
  11. We are in a crypto market meltdown for a year now and we've all been taken from one extreme to the other. We've got to a point where any talk about tokens, bad or good, struggles for money and legitimacy. Finding the middle ground Token-economics is not a concept with meaningless activity, and we can see some proof in the incentive systems of Bitcoin and Ethereum which have sustained decentralized communities in creating products and exchanging value. To think people will make use of similar models across different mainstream industries, when their means of securing life’s necessities depend on compulsory centralized systems is also misplaced. Casting away token economics in total would be a big shame. The fact that there is a general doubt in online media data, and that the building of independent solar microgrids are obstructed by electric utilities, a lot has gone wrong around the globe which needs to be overcome. If digital asset system can make communities enter into exchange without the need of placing their trust on intermediaries. Make the wise choice This is a double-edged challenge: Getting to know the most viable models as a starting point and possible ways of bringing them to the market. A very good place to begin are industries where the traded product is already a formed item of digital value like entertainment, gaming or online media. Lots of projects would do well to build a market that initially makes fiat money, but with plans to bring in a token model as times go on. This is to say that, a good number of token startups who have generated nothing near a critical mass of users should make plans to first of all create a pre-token community or build a token model on top of an existing community. This will lead to real-world questions related to gaining access to financial resources and sustaining self-funded growth. Harsh Reality ICO issuers, especially those that either failed to raise more than enough funds or those that kept too much of their funds in devalued cryptos or both, are faced with some tough questions: At first, how do you fund business development? Venture Capital? Loans? Founder Money? etc. These options facing them were highlighted in two stories that occurred last week. One happened with Michael Novogratz's crypto-dedicated merchant bank Galaxy Digital. To offer credit to upcoming crypto firms, they created a $250M fund. In hard times, as long as your product is viable, credit will always be an option. The second story has to do with BEE Token, whose ICO promised a decentralized platform, has diverted from a token appreciation model to one that requires a fee for services to be rendered. It's now obvious that crypto companies, in order to survive hard times, are pivoting on their funding and revenue models. What we can hope for is that those utilizing the traditional methods can hold back the pressure from investors both within and outside, to simply hold on to the more centralized models required by these approaches.
  12. Alistair Milne, co-founder and CIO of Altana Digital Currency Fund (ADCF) said in January that he remains bullish on Bitcoin, and he gave reasons to back up his idea. Altana Wealth Ltd also called Altana is "a London-based asset management company based in London with an affiliate company based in Monaco." The company is regulated by the UK Financial Conduct Authority and it assists professional clients as well as eligible counterparties to manage their assets. The company, initially founded by Lee Robinson in April 2009, offers two crypto-focused funds for now: Altana Digital Currency Fund (ADCF): This fund aims to capture high volatility and outperform a passive investment. It invests much in Bitcoin as well as Cryptocurrencies having a market cap higher than $20M. Altana Cryptocurrency Trade Finance (ACTF) Lee Robinson and Alistair Milne co-founded ADCF and began trading in May 2014. ADCF won the award for the Best cryptocurrency/blockchain hedge fund, while Alistair Milne won the award for “Rising star (hedge fund or FoHF individual)” category, during the Hedge Funds Review’s European Performance Awards 2018 held in London on November 22nd 2018. Milne, on Saturday explained via his Twitter account why he remains bullish on Bitcoin. He revealed that from the start (2014), his firm saw Bitcoin as an asymmetric investment opportunity. Clarifying further, he said that Bitcoin’s asymmetric nature still holds true till today, just the same way it did when ADCF first invested in Bitcoin. This means that the price of Bitcoin could drop further and also could reach its all-time high of almost $20,000 which it attained in December 2017. He went on to say that he will not sell when next Bitcoin attains the all-time high. He said: Milne then noted that as a result of Bitcoin’s wide recognition, the next comeback for Bitcoin will lead to a lot of retail investors buying the coin due to fear of missing out (FOMO): Finally, he said that Bitcoin is the only cryptocurrency will surely survive the next 100 years:
  13. On 3rd of February, Parity Technologies (Ethereum Blockchain infrastructure developer) in a blog post revealed that, it faced some security issues and advised nodes to carry out an urgent update. Parity revealed that it was notified of the loophole that will give attackers easy access to shut down nodes. Officials have a summary of the situation: Parity took to social media to announce that efforts are being made to fix the vulnerability. A tweet read: At the end of 2017, a Parity Ethereum wallet owner out of carelessness, wiped off 513,774.16 ETH (which is approximately $54M). The following April, an Ethereum Improvement Proposal (EIP) submitted to help restore a disabled contract to unlock the funds was turned down. In January, Parity got a grant worth $5M from the non-profit Ethereum Foundation to help fund the development of Casper, infrastructure and Sharding.
  14. cryptofreak

    Komodo - all about it

    Komodo is a privacy blockchain with open-source infrastructure that helps businesses and developers with end-to-end blockchain solutions. With this platform, developers create their own blockchain projects, crowdfund, launch or partner with other projects in the crypto industry. The platform enables decentralized initial coin offering (DICO) and Decentralized exchange- BarterDEX. Decentralized Initial Coin Offering (DICO) With two easy commands, the Komodo platform can launch new independent blockchains. The new coin then exists on a separate chain which is backed up on the main chain of Komodo. DICO makes it possible for coins to be distributed across many nodes found on the Komodo blockchain, which reduces the possibility of the possession of larger fraction of the coins by a very few. To make trading easy after the crowdfunding, DICO links directly with BarterDEX (the decentralized exchange). Furthermore, with privacy feature Jumblr, DICO participants can be anonymous. Komodo doesn’t host more than one DICO at a time; mobile e-banking platform Monaize will be the first project to use the service. Decentralized exchange- BarterDEX BarterDEX is the decentralized exchange of Komodo. It makes crypto trading possible without counterparty risk. BarterDEX, in a bid to solve the liquidity issues that faces decentralized exchanges, has two different nodes that run the network. The BarterDEX supports coins based on the Bitcoin protocol, ERC-20 tokens and SPV Electrum-based coins. Consensus The Consensus algorithm used by Komodo is the Delayed Proof-of-Work (dPOW) which was developed by the Komodo developers. The dPOW has two types of nodes: Normal and notary. Normal nodes read and validate transactions in the dPOW chain while Notary nodes publish transactions on the bitcoin blockchain, which is the backup consensus chain. Jumblr The Komodo whitepaper reveals that Jumblr (the privacy feature) is a tech that permits users to anonymize their cryptos as well as their transactions. The average fee to make use of Jumblr is 0.3%, which is paid using KMD tokens. Komodo history Komodo’s history can be traced back to the SuperNET project which was created to build services on the Nxt blockchain. Unfortunately, the SuperNet team were not informed of changes made on the Nxt blockchain which led to James "Jl777" Lee (SuperNET’s lead developer) cutting off himself from the Nxt blockchain. Komodo began in 2016 with James Lee declaring independence from “any single blockchain” after an event that frustrated his SuperNET project. Due to this experience, Komodo was created on the principles of freedom and autonomy. Komodo is an evolution of the BitcoinDark cryptocurrency. Initially, the platform was forked from Zcash. About the team The Komodo team is composed of the administration, management, support, development and marketing teams. Members of the management team are Ben Fairbank (General Manager), Steve Lee (CMO), Kadan Stadelmann (CTO), and Saddam Hossain (Support Manager). Founder, James “Jl777” Lee leads the development team and working with him are 23 other developers and engineers In the marketing section, Komodo has a team of eight members while in the administration and support section, we have 10 people. Komodo advisors include ex VP of Microsoft Michael J. Toutonghi and Dr. Sajib Datta. Also, Komodo has the support of dozens of volunteers. The KMD Coin Komodo’s official cryptocurrency is the KMD coin. Its fixed supply is 200 million euros. During the ICO, 100 million of this was pre-mined and distributed (10 million for the development of the platform and 90 million for investors). The remaining 100 million is still in the mining process. Every month, holders of the KMD coin get up to 5% interest on whatever amount they hold. You only need to send the coins from one address to another to activate this interest, and to earn this interest, the coins must be held in a wallet. KMD coins can be purchased and traded on Bittrex, Binance, Upbit and others. The coin can also be stored on Agama (the Komodo wallet).
  15. cryptofreak

    Komodo - all about it

    I didn't find any subforum about komodo, so I posted it here.
  16. Overstock's portfolio company, tZERO has started giving investors the control of their tokens purchased during a completed sale by the firm in August last year. On Thursday, Saum Noursalehi, CEO of tZERO sent a letter to investors highlighting the first steps required to take full control of the tZERO security tokens. Back then, a press statement revealed that, tZERO finalized the $134M offering in August, and in October, said that it had completed the issuance of the tokens, which were then secured in a custodial wallet till 10th of January 2019. Noursalehi wrote: Also included in the letter is that, two alternatives are open to investors: Either they open a brokerage account with Dinosaur Financial Group (tZERO partner and broker dealer) or hold the tokens in a private wallet. The firm said: What we are yet to know is the exact time tZERO will commence trading the security token on its platform. tZERO informed investors to look out for another tZERO update regarding the commencement of security token trading.
  17. Block.one, who is responsible for the creation of EOS VC and EOS, has been referred to as the leader in providing high-performance blockchain solutions. Block.one has revealed its two main products as cryptocurrency and the VC arm, but explained that the company is putting in much effort to offer available dApps, the strongest infrastructure. The Block.one team is focused at offering end-to-end solutions to bring to the blockchain, various companies, institutions and investors through different services. Block.one has deployed a business-centric philosophy for decentralized systems. This is one good reason why people feel EOS is competing with Ethereum; they both aim to further enterprise adoption and usability of decentralized systems. EOS ICO Block.one is well known for its EOS ICO, where more than $4 billion was raised. Instead of perform the same way many ICOs did, where tokens were kept in smart contracts until the sale of the token was completed, EOS kept operating in the open as well as maintaining market placement. When its ICO was officially completed, EOS took the title of “biggest ICO completed” and still holds it till date. Due to this news, the EOS price made the top five among cryptocurrencies ranked by market cap. Since it peaked, its price has dropped by 75%, however the Block.one team is still determined to reveal the full potential of the project. Leadership and Management The Block.one team, despite the controversy has risen to include several programmers, bankers, scientists and entrepreneurs. Brendan Blumer, CEO and founder of the company established Block.one for blockchain solutions, after getting some inspiration from his first company startup. Blumer also established Okay.com, which is the largest digital property agency in Hong Kong. In the crypto community, Daniel Larimer who is the CTO of Block.one maintains a complex aura. The Chief Technology Officer is also a co-founder of both BitShares and Steemit. Block.one Development As we’ve seen in results from TRON, Ethereum, and EOS, smart contracts may be the best way to expand a project through its developers as well as its community. Block.one on countless occasions has reported its passion and involvement for smart contracts. Developers should consider that, what solidity gives to Ethereum, Block.one makes it possible for developers to create their singular smart contracts or EOS-based dApps through its development kit. Although, there has been an argument over which infrastructure can offer huge outcomes for decentralized programs, the major arguments in favor of EOS smart contracts includes: Better scalability potential, no fee required, and greater TPS can be processed.
  18. cryptofreak

    Crypto Exchanges rankings

    The Blockchain Transparency Institute (BTI) released their report for November 2018 with some findings that reveals how crypto exchanges have fared in 2018. One important finding here is the total number of active users on exchanges on a daily basis all over the world. Rankings by total daily users were as follows: Coinbase - 422000 users Binance - 313000 users Okex - 105000 users Huobi - 101000 users Rankings by average transaction volume: Bitfinex - $3560 Binance - $2140 Coinbase - $190 The crypto industry is experiencing a lot of stress from the fall in prices, which can be seen in the low visitor count for most of the top crypto exchanges in the world.
  19. As young stars find their way to Hollywood, and IT companies flood the Silicon Valley of California, blockchain startups have chosen their own base, which is Switzerland. This small country has long been known to have safe banks, chocolate and watches; now as a result of its openness towards cryptos, blockchain companies and Initial Coin Offerings (ICOs), it is now referred to as the Crypto Valley of the world. Why is it Switzerland? Crypto projects have chosen Switzerland due to the country's low taxes, also its regulations are business-friendly. In January last year, Crypto Valley (a world-wide hub for virtual currencies) was established in Zug, which has made Switzerland one of the leading countries in the world for crypto and blockchain technologies. Already, dozens of crypto companies and organizations have been attracted which includes: Ethereum, Bitcoin Suisse, ShapeShift, Tezos, Monetas, ConsenSys and Xapo. The regulatory authorities of Switzerland were among the first to give details of how STOs and ICOs can be treated legally. The Swiss government’s Federal Council released a report on virtual currencies explaining their economic importance, risks as well as legal treatment. Importantly, they agreed that crypto takes on the role of money, but is not regarded as legal tender and therefore should be classified as an asset (property). Switzerland's Tokens classification The Swiss Financial Market Supervisory Authority (FINMA) is in charge of the supervision of blockchain-related companies as well as the financial market. FINMA, during the assessment of ICOs, focuses on two primary factors to classify them: Economic function and purpose of the tokens. Underlying purpose of the tokens and whether they are already tradeable or transferable. The guidelines of FINMA on ICOs, classifies tokens into different categories. Payment tokens should be used for both present and future purposes, as a form of payment for acquiring goods or services or as a method of money transfer. Here, rights are not stipulated towards the issuer. Utility tokens are meant to give digital access to a service or application through a blockchain-based infrastructure. Asset tokens deals with assets like debt or equity claim on the issuer. For instance, asset tokens assure a share in the future earnings of a company or future capital flows. Regarding their economic use, these tokens can be taken as equities, derivatives or bonds. Included in this category are tokens that allow the trading of physical assets on the blockchain. Asset and utility tokens can also be grouped under Payment tokens (also called hybrid tokens). In this case, the tokens are required to perform two functions: a security and a payment method. Swiss law has said that these asset tokens are referred to as securities. Tokens representing an uncertificated security, which are standardized and useful for mass standardized trading. Asset tokens referred to as a derivative. A close look at AML and KYC While utility tokens do not require a license to become securities dealers, digital assets will need to meet some legal rules before they can be referred to as securities. Most importantly, crypto exchange into fiat money, securities dealers, banks and asset managers are usually subject to requirements of Anti-Money Laundering, which includes supervision, registration, and recognition of counterparty obligations. The Anti-Money Laundering Act seeks to safeguard the financial system from money laundering risks as well as financing terrorism. In a decentralized blockchain-based system, the risks are usually very high, whereby the transfer of assets can be done anonymously without requiring regulated intermediaries. Companies that issue and trade asset tokens should carry out a form of procedure referred to as Know Your Customer (KYC), and get a security dealer license. Securing a License as a securities dealer Anyone grouped within the asset tokens category should put in an application for the securities dealer license. If the startup meets the requirements concerning the capital, organization, as well as the reporting and trading activities, the license will be granted. Organizational requirements A securities dealer should have an efficient organization that helps it carry out its activities effectively. A securities dealer must also have a management team as well as board of directors. The management team members will have to be very efficient in carrying out their respective duties. There has to be enough separation between asset management, trading and administration. An internal control system will need to be established by the securities dealer, which will consist of internal audit, risk management and compliance. The appointment of an external regulatory audit firm must be made. Capital requirements At least, a minimum capital of at least CHF 1.5 million ($1.517 USD) must have been paid fully by any securities dealer. Any shareholder, either directly or indirectly holding over 10% of the voting rights or capital of a securities dealer, or in any way can influence the securities dealer’s business activities must meet FINMA’s fit and proper criteria. The same provisions applying to banks concerning their own capital and accounting in general also applies to a securities dealer. Clients’ deposits are subject to a stronger protection. Information, reporting and approval obligations All securities dealers must comply with information, multiple reporting and approval obligations on an ongoing basis. Any change to the requirements for a license grant, like regulations, articles of association, management, material change of business activity and external audit firm, as well as investments, build-ups and divestments of foreign operations, must first of all get the approval of FINMA. Any direct or indirect acquisition or stake sale in a securities dealer getting to, surpassing or going below thresholds of 20%, 33% or 50% of the capital or the votes, has to be reported to FINMA. High frequency and algorithmic trading Participants in Swiss trading locations involved in high frequency and algorithmic trading activities have recording requirements, and their systems must function effectively and adequately. Future law amendments you must know Switzerland Frequently enhances its crypto legislation. On 14th December, 2018 the Federal Council of Switzerland and FINMA announced an improved legal framework, with a published report titled "Legal Foundations for Distributed Ledger Technology and Blockchain in Switzerland." They have plans to include these adjustments: Concerning banking law – examining the corresponding adjustment of bank insolvency law provisions as well as submission of adjusted proposals. With this, investors will not fall prey to fraudulent organizations. Regarding the financial market infrastructure law – bringing in an added category of authorization for exchanges and traders, functioning with financial assets that are blockchain related. FINMA will be empowered to interfere with their activities, if required. n the AML law – making adjustments so as to regulate decentralized crypto exchanges managing the digital assets of users. Collective investment schemes law – making chances to the Collective Investment Schemes Act so as to make way for a new category of funds (referred to as limited qualified investment funds, L-QIFs). By this, the placement of new and innovative products on the market can be done more quickly and cost-effectively in the future.
  20. cryptofreak

    Guide for mining Litecoin

    Mining Requirements Some conditions have to be met before one can get involved in mining, and not everyone is suited to crypto mining. Today, mining requires great investment from the miner. From the onset, anyone could mine using their PCs, but as mining difficulty increased coupled with more miners coming in to compete for block rewards, the mining hardware has suddenly become performant. To stand a chance of getting some rewards through mining, two things must be invested: A reliable and effective mining computer and electricity that will power it. How is Litecoin mined? First, a wallet will have to be downloaded and installed, where your Litecoin will be stored. The Litecoin core is the best for mining, which was developed and still has the support of the Litecoin development team. Next, you get your hardwares. You can either purchase a specially-made crypto miner or assemble a mining rig yourself. One big manufacturer of mining equipment is Bitmain. The Antminer L3 of Bitmain is a very powerful ASIC miner that utilizes Scrypt to mine Litecoin. With some technical expertise, you can create one yourself by making use of three major components: A fan setup or cooling unit (this presents overheating of the machines). A type of Scrypt mining software. One or more advanced graphics processing units (GPUs). Steps required in setting up your miner 1. Plug in all the necessary cords (power cord, Ethernet cable, 9 PCI-e connections) 2. Access the interface of the miner and log in. 3. Download Angry IP Scanner (the free IP scanner tool) 4. Install and run it 5. Click on start in order to scan and locate devices present on your local network. 6. On the top menu bar, click Go to and then next alive host 7. From the Hostname column, right click on Antminer and choose Copy IP. Then paste the IP into the URL line of your browser. 8. Log in using root as your username and password. Litecoin Mining Pools Those days are gone where you can set up a mini mining operation right at home and make some profit. Today, individual miners have to compete with large mining organizations. However, for those lacking the necessary resources to create a commercial-level operation, some alternatives are open to them. One of this is to join the mining pool. This is where miners combine their computing power to find solution to mathematical problems and earn block rewards. Although, rewards are shared among the participants, individuals can mine with a much lower investment. Another option is investing in shares in a mining operation. With this, companies operating the mining rig will be able to create larger startups that are more competitive, therefore creating higher returns.
  21. cryptofreak

    Trezor adds native Ethereum support

    The development team of the Trezor Wallet announced that the beta firmware of the device will now be offering native support for Ethereum Classic, Ethereum and ERC20 tokens. On the Trezor blog, an announcement was made that, third party integrations like MetaMask, MyCrypto, and MyEtherWallet will continue to work parallel to the new functionality. Operational details of the Trezor Beta The company revealed that it has added Coinswitch (an instant crypto exchange platform) as a new wallet exchange partner, along with Changelly and Shapeshift. The announcement says that, accessing the new functionality requires users selecting either Ethereum Classic or Ethereum in the currency selector. Then the option "Go to Trezor Ethereum Wallet" is selected. After successfully following these steps, the user may start making use of the new beta interface. Users of the aforementioned third party Trezor integrations will immediately be able to view their balance. The summary view gives them an overview of their account balance and assists them in selecting the tokens of their choice. The tab also permits users to see the current exchange rate and the total balance. The tab can also be used to make deposit of a selected crypto token to their wallet, and for each token selected, balances as well as transactions can be monitored. Talking about the receive and send functions, a section from the announcement says:
  22. cryptofreak

    Analysis tools

    Great tool analyzing ethereum. For instance, everything that happened to Ethereum in 2018: https://2018.ethereuminreview.com/
  23. Blockchain Technology, though still young is making progress in transforming the way industries function. This innovation has touched several areas such as payment services, file sharing, finance, business management, logistics and transportation, with very new sectors yet to be addressed by the innovation. This revolutionary tech has its own flaws, which has led to the slowing down of its overall effectiveness and mass adoption. Some of these issues, include: lack of interoperability between different blockchains, the inability to scale, and energy inefficiency. Polkadot and Cosmos are two great projects currently leading the race to solve the biggest problems of Blockchain, with each having its unique solution. While Polkadot aims to link multiple blockchains into a single and fully decentralized internet referred to as Web 3.0, Cosmos on the other hand wants to build a network of decentralized blockchains that will exchange data and payments among themselves. However, the Polkadot project with less goals, still managed to raise more than $350 million during its ICO, giving the project the upper hand in terms of security. Cosmos Vs. Polkadot Though, picking one project over the other is virtually not possible, as they respond to different user base, contrasting and comparing both networks might give a better understanding to both users and investors. According to a forum discussion on the Cosmos Network Website, the Polkadot network has one global order of blocks, and until they are ordered by the master chain, no transaction can be completed. On the other hand, the Cosmos Network has several hubs in which data submission can only be possible when the IBC packets are being exchanged to each other. These projects have their native cryptocurrencies, and Polkadot collators must stake their DOT coins to create valid updates to the Turing-complete parachains. Cosmos' main benefit is that the platform is developer friendly which makes the development of dApps very easy due to its Tendermint-based toolkit. Polkadot on the other hand, offers a straight forward and minimal functionality, and generally, it is a user-friendly platform which will be appealing to users that are less experienced.
  24. Ethereum developers are quietly planning an undisclosed upgrade which will aggressively boost the tech's capabilities in the short-term. At the Devcon4 conference four private meetings took place with minutes where they were revealing that by June 2019, an upgrade referred to as "ethereum 1x" could be activated. Though initially undisclosed, an attendee at the meeting who chose to remain anonymous, confirmed the minutes of this meeting. He told CoinDesk that, developers feel the proposals are still at the planning stages and therefore shouldn’t be publicly discussed yet. Afri Schoeden (release manager for the parity ethereum client) wrote on GitHub that he had no idea that such developments for an impeding upgrade were ongoing. Attendants at one of the meetings include Vitalik Buterin (Ethereum founder), Joseph Lubin (founder of Brooklyn-based Consensys systems), and well known community developers and organizers like Hudson Jameson, Peter Szilagyi, and Lane Rettig. This series of upgrades will include replacing the underlying virtual machine (EVM) of Ethereum. This EVM is responsible for processing smart contract code. In addition, it will introduce storage fees for smart contracts, which would seek to strengthen the growth of the Ethereum Blockchain. Although the upgrade is still in its planning stages, developers have initially discussed an alternative to EVM, which is to implement eWASM, which will provide a faster as well as a better approach to Ethereum computation. Buterin, stressing the importance of transparency in this upgrade, has said that he is "uncomfortable with institutional private calls and absolutely against private forums." Schoeden, reacting to the minutes of the meeting, disapproved the idea if planning the upgrade without involving the public. He said: Responding to the meeting, at least three working groups have been formed, each with its own focus: One to look into the changes to the cost of smart contracts, another to focus on the EVM changes and another to aim at stimulating and modeling the impact of such alterations.
  25. cryptofreak

    SEC and Bitcoin ETFs

    On 5th November, part of the crypto community was waiting to hear from the US SEC concerning their decision made on nine Bitcoin ETFs. However, no statement was released as 5th November was the deadline for the submission of public’s comments to the U.S Securities and Exchange Commission, so as to assist the agency in reviewing the case. This deadline was meant for the nine Bitcoin ETFs earlier reviewed in August The SEC has rejected nine Bitcoin ETFs on 22nd August. Those ETFs were from: Two from GraniteShares, five from Direxion and the remaining two from ProShares in conjunction with the New York Stock Exchange (NYSE) ETF exchange NYSE Arca. The SEC, explaining why it decided to decline these proposals, said that: Then the day after, on 23rd August, the agency decided to reconsider stating that in the future, it will once again review all the nine ETFs. Specifically, Hester M. SEC Commissioner explained through Twitter that the SEC officials came to the resolution, after they were assigned the task by Chairman and Commissioners, who then thought of reconsidering their decision. The deadline was simply meant for public comments On 4th October, a corrected order was issued by the regulator scheduling a filing on the nine Bitcoin ETFs rejected earlier, where it explained that “by November 5, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.” It is been a regular thing for the SEC to request comments from the general public. However, some members of the community were quite confused about the rumour that the date for SEC’s decision was 5th November, and expected an official statement to be published by the agency. The community takes decisions on ETFs very seriously, due to the fact that a lot of legitimacy could be added to the crypto market if the regulators give a greenlight. Will those ETFs get the SEC’s approval? This may not happen, but there’s always a chance. Since March 2017, when the Winklevoss twins Bitcoin ETF was disapproved, all crypto-related ETFs have been declined by the agency, with the agency worried “that significant markets for Bitcoin are unregulated.” Asides this batch, one very promising ETF is that powered by VanEck (an investment firm) and SolidX (a financial service company), with an added emphasis on insurance. With no set deadline for the nine Bitcoin ETFs, the watchdog will be reviewing the VanEck SolidX Bitcoin ETF until February 2019. By then, the industry might be well prepared for the scrutiny by the SEC. Thus Brian Kelly, crypto analyst at CNBC initially argued that, Chicago Mercantile Exchange (CME) derivatives marketplace gave statistics revealing that the futures market is experiencing a quick evolution and we might probably have a better chance at Bitcoin ETF approval by 2019:
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