Another Hard Fork, Will Bitcoin Cash Tank or Soar in Response? 8556

  • Bitcoin Cash (BCH) up 6.8 percent
  • Schnorr Signatures implementation ahead of the more decentralized OG

Six months after a contentious hard fork, Bitcoin Cash developers plan to upgrade the network to include Schnorr signatures that require less space while simultaneously promoting scalability, security, and privacy. Meanwhile, Bitcoin Cash (BCH) prices are stable, up 6.8 percent in the last week.

Bitcoin Cash Price AnalysisFundamentals

Roger Ver maintains that Bitcoin Cash (BCH) is the real “Bitcoin” and knows little about Craig Wright’s Bitcoin SV. Although Bitcoin Cash is a fork of Bitcoin, supporters claim that their big blocks make the network more scalable and therefore, there is no need for implementing layer-2, off-chain solutions like Lightning network.

Despite Roger Ver and Bitcoin Cash proposal, adoption levels are low and compared to Bitcoin or even the second most valuable network in Ethereum (ETH), Bitcoin Cash is lagging. Even so, it is popular in Japan where “Bitcoin Jesus” resides, and the Kraken acquisition of Crypto Facilities did boost trading volumes around BCH derivatives which is positive.

However, a stand out is their ability to integrate solutions that make the network more resilient and private. Planning for a hard fork on May 15, Bitcoin Cash developers will upgrade the system, replacing the Elliptic Curve Digital Signature Algorithm (ECDSA) with a new signature protocol, the Schnorr Signatures that introduce privacy while making the network faster, secure and scalable.

Unlike the ECDSA, Schnorr signatures require less space, cutting down bandwidth requirement by a massive 25 percent.

Candlestick Arrangement

At the time of press, Bitcoin Cash (BCH) is stable and up 6.8 percent in the last week. Despite the dragging effect of Bitcoin and their direct correlation, we expect BCH prices to be resilient.

Notice that BCH is within a bullish breakout pattern against the USD as the asset trade above a critical resistance level—now support, at $230. Because prices are reacting at the 61.8 percent Fibonacci retracement of the week ending Apr-7 high low, the underlying moment is intense.

Typical of Fibonacci retracements, the reaction from such level would most likely lead to a retest of previous highs. In that case, risk-off, aggressive traders should be angling for $350. After that, any clearance would see BCH retest Nov-2018 highs of $400 in a classic retest.

Any breach above $400 cancels the bear breakout of Nov-18, spurring the next wave of higher highs toward $650 or Oct 2018 highs.

Technical Indicator

Ideally, any break above $300 should be with high participation level above Apr-3 volumes—462k. That’s a tall order unless there is a fundamental spark that increases demand for BCH whose average volumes stand at 57k

Chart courtesy of Trading View

 

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6 ARRESTED IN THE UK AND NETHERLANDS IN €24 MILLION CRYPTOCURRENCY THEFT 3694

Today, the UK’s South West Regional Cyber Crime Unit (SW RCCU) in a joint operation with the Dutch police (Politie), Europol, Eurojust and the UK’s National Crime Agency (NCA) has arrested 6 individuals after a 14-month long investigation into a €24 million cryptocurrency theft.

The five men and one woman were arrested in simultaneous warrants this morning at their homes in Charlcombe, Lower Weston and Staverton (UK) and Amsterdam and Rotterdam (the Netherlands).

The theft, which targeted users’ Bitcoin tokens, is believed to have affected at least 4 000 victims in 12 countries, with the numbers continuing to grow.

The investigation relates to typosquatting, where a well-known online cryptocurrency exchange was ‘spoofed’ – or recreated to imitate the genuine site – to gain access to victims’ Bitcoin wallets, stealing their funds and login details.

This case was referred to the European Cybercrime Centre (EC3) and the Joint Cybercrime Action Taskforce (J-CAT) hosted at Europol after the British authorities identified possible suspects living in the Netherlands. Operational support delivered by EC3 since February 2018 allowed the J-CAT to coordinate the international cooperation between the different EU Member States involved.

In addition, operational meetings were organised at Europol’s headquarters between the British and Dutch authorities, allowing for the smooth exchange of intelligence and evidence which led to these successful arrests. A coordination meeting was also held at Eurojust to prepare for the action day.

Bitfinex to Complete Platform Upgrade on June 26 4128

bittt

On Wednesday June 26, both Bitfinex and Ethfinex will be offline for up to seven hours as we commence a platform upgrade designed to enhance the stability and scalability of the iFinex matching engine.

The platform upgrade will require taking all iFinex trading platforms offline for the duration of the maintenance period. This means that traders across both Bitfinex and Ethfinex will be unable to trade, view or access their wallets during the update.

We kindly ask all our traders to plan ahead accordingly and make the necessary account adjustments prior to the start of the platform upgrade.

What this means for traders

The June 26th update is designed specifically for us to be able to deliver a more sophisticated trading experience, further separating Bitfinex from the remainder of the digital asset trading space. This includes, amongst other things, laying the foundation for the launch of derivatives trading on Bitfinex.

Traders across both Bitfinex and Ethfinex will not be required to take any actions:

  • All funds will remain safe and unaffected throughout the platform upgrade, and will not be at risk at any point.
  • No orders will be executed during downtime. All open orders will be kept (regardless of price movements) and resume once the platform is back online.
  • Users will not be liquidated during downtime. However, traders should be aware that if the price moves significantly during this time, they are at risk of liquidation as and when the platform is reopened. In line with this, we kindly ask all traders to review their margin requirements and assess the risk of market movement on their open margin positions before entering the maintenance window.

Whilst the platform upgrade is set to take place on June 26th, this date is largely dependent on broader cryptocurrency market conditions and the chance exists that the upgrade will be postponed if market movements are deemed too volatile.

We appreciate that up to seven hours is a significant length of time in digital asset trading, but we ensure our active user base that we have taken every measure to make this upgrade as seamless as possible.

For more information on the day of the upgrade, please refer to the Bitfinex status page and Twitter account for official progress. We will let our users know 5 minutes before the platform re-opens. Trading will start 10 minutes after the platform is accessible again.

The eToroX Libra Implementation 4353

Facebook’s announcement this week about its cryptocurrency Libra has far-reaching potential. eToroX’s Labs Blockchain Science team, comprising Chief Blockchain Scientist Dr. Omri Ross, Peter Emil Jensen, and Johannes Rude Jensen, was quick off the mark to investigate how our eToro tokenized assets (and the technology behind them) would work on Libra’s initial prototype, and how well it suited our specifications.

By exploring Libra’s capabilities, and using Move IR (the intermediary representative layer of what will eventually be the final programming language), they successfully managed to implement an initial version of eToro tokenized assets on the Libra Network.

Using a previous incarnation of an implementation that targeted Ethereum as a basis, the team wrote and executed a basic implementation for creating digital asset infrastructure (tokenization capabilities) on Libra.

Our Top Two Takeaways

1. In Move, resources (data structure types) cannot be moved or copied — an extremely constructive and beneficial capability, especially for digital assets, since it prevents accidental duplication and loss.

2. Contrary to other blockchain languages, Move does not allow publishing data on behalf of other users. Because of this, it requires users to acknowledge this beforehand, thereby giving users full control of which data is associated with them.

Read the full report of eToroX’s Libra Implementation on Github.

AI and blockchain solution for insurance industry BlockClaim raises seed funding 5437

BlockClaim

BlockClaim, the first hybrid artificial intelligence and blockchain technology solution developed for the insurance industry, has successfully completed its seed funding round with a £500,000 investment.

Developed at Imperial College London, BlockClaim uses the very latest advanced data science techniques to provide insurers with AI-powered fraud filtering and blockchain claim automation. It allows insurers to simultaneously detect fraudulent claims and process claims in record time thanks to groundbreaking capabilities such as intelligent claims-routing and self-learning fraud detection.

Features such as an image recognition AI module can be used to automatically detect damage to vehicles in the event of an accident claim and validate whether it’s genuine or fraudulent. The system can also scan phone and email conversations for inconsistencies and irregularities, helping insurers automatically weed out fraudsters, resolve claims faster and offer a better standard of customer service. BlockClaim delivers a cost per claim reduction of 20% along with significantly reduced settlement times.

The seed funding round attracted investment from global technology investor, Amadeus Capital Partners, whose previous investments include Graphcore. Amadeus is known for its focus on AI and machine learning, cybersecurity, healthcare and SaaS. It has invested over $1 billion since 1997 and specialises in taking high-growth companies global. A number of highly successful insurance executives and business angels also backed BlockClaim in its seed round.

Niels Thoné, CEO of BlockClaim, says, “BlockClaim brings the insurance industry into the digital age with state-of-the-art engineering which couples the power of machines and distributed ledger technology with over two decades of industry experience. The rapid advancement of data science allows us to provide unprecedented objectivity and context automatically in areas that were hitherto only subjective. This makes it much harder for fraudsters to pass through the net.”

DrawBridge Lending Offer Bitcoin SV Non-recourse Loans with No Margin Calls 5099

Bitcoin SV

In another cryptocurrency first, you can now secure loans against your BSV. Chicago-based DrawBridge Lending now offers BSV non-recourse loans with no margin calls. Not in the future but today, as DrawBridge CEO Jason Urban explains: “Recently, we loaned an entity a seven-figure sum secured by BSV and BTC posted with a third party regulated custodian. The interest rate on this transaction was 3%, well below standard market rates. We are able to lend the money at this rate by putting the collateral to work with the use of standard derivative option strategies.”

The main benefit of DrawBridge’s loan product is that the borrower can keep their BSV coin but generate sufficient returns to pay down the cost of funds. The borrower is free to deploy the cash proceeds for its own needs while retaining ownership, and potential price upside, of their coin. In this particular case, BSV price rallied 150% after the loan and the client retained the price appreciation which they would not have been able to do if they had simply liquidated the coin.

This is a noteworthy milestone for the BSV ecosystem for a couple of reasons. Firstly, it demonstrates that trade desks are willing to engage in options trades with BSV coins. This speaks volumes of how BSV is perceived by the professional trading community. Secondly, as the trading of derivatives on the coin becomes more widespread in the BSV ecosystem, finance professionals will create more useful products to deploy and unleash the full potential of the asset.

Calvin Ayre, owner and founder of the Ayre Group and CoinGeek, and supporter of BSV added: “When I first heard about how DrawBridge Lending were expanding into BSV, I was blown away by how obvious the business model was and, obviously, delighted to see further real-life business utility for the only coin that does it all.”

NB: The options are traded on the basis of a standard legal agreement called ISDA Master Agreements. These are common in the traditional financial world but are in the early stages of adoption in the digital world.

Which Coins Will Likely To Be Affected By The Binance Shutdown By The US? 6242

Binance has recently announced that they will no longer allow access of US traders to the exchange, starting September 12, 2019. Although Binance has stated that they will be partnering with Bam Trading to create a US compliant exchange, there is still no time frame on when this will be active – and we can also assume that it will be a minimal function, to begin with for US customers.

In the meantime, we can assume that the volume for the majority of cryptocurrencies that were available to US customers on Binance will now suffer significantly over the next few months as US customers have limited options to trade the cryptocurrencies elsewhere.

The following chart shows which of the coins which are listed on Binance are also listed on other US exchanges. Those include Coinbase, Bittrex, Poloniex, Kraken, HuobiUS, and eToro.

The research is very eye-opening as it shows how the majority of cryptocurrencies will now struggle to find liquidity after the Binance US closure.

bin

Cryptocurrencies such as AE, HOT, LINK, NANO, ONE, VET, and WTC will have nowhere to trade for US customers. These cryptocurrencies should see a significant drop in volume during the upcoming months as they have nowhere for US customers to trade from, as of writing this. Of the above, Harmony (ONE) was the latest IEO on Binance Launchpad.

Binance Coin (BNB), the native token of Binance, will only be available to trade on eToro. In fact, there are quite a few top-flight coins that will be available to trade on just one US compliant exchange, including ARK, BTT, IOTA, PIVX, and ZIL. These cryptocurrencies are lucky to have one exchange but will still see a significant fall in volume coming from US customers after the Binance anticipated shutdown.

Veteran Altcoins At Less Risk
Although the previously mentioned cryptocurrencies may be in trouble, there is still a handful of cryptocurrencies that will be available on a range of US compliant exchanges that will not be affected by the recent Binance closure. These include cryptocurrencies such as XRP, DASH, XLM, ETC, ZRX, and ZEN – which are all on more than 4 US compliant exchanges.

The bottom line is that the recent Binance closure will send ripples throughout the entire cryptocurrency industry. Binance is the worlds largest cryptocurrency exchange with the highest reported volume. However, a large proportion of this volume is coming from US customers. After the US customers have been restricted, we will most certainly see a substantial drop in the amount of volume coming into the market. What is for sure, is that CZ, the CEO of Binance, is already working on a solution for his US customers.