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Pushing the legal limits, July 10 to July 17



Every Friday, Law Decoded provides an analysis of the week’s critical stories in the areas of politics, regulation and law.

Editor’s Note

New developments in cryptocurrencies this week are challenging a number of critical limits on legal authority. Accordingly, we are analyzing several cases that promise to establish new lines for the scope and overreach of the government.

Cassius lamented that Caesar took the narrow world as a colossus. While nothing in today’s newsletter will be as dramatic as the death of the Roman Republic, we actually saw a rather mysterious but strangely comical dress rehearsal by bad actors disguised as state leaders. We will also be looking at some national regulators looking to go beyond their obvious borders.

In last week’s Law Decoded, I pointed out that the cryptocurrency industry has a bad habit of forgetting that regulators who manage cryptocurrencies are managing other colossal financial systems at the same time. In a sense, today’s newsletter is a throwback to that sentiment. There is a lot of power at stake.

Elon Musk won’t give you Bitcoin and other harsh realities

By far the loudest news item to come out of the cryptocurrency world this week was the Twitter hack that although it was ingenious enough to access and tweet from the accounts of many of the world’s most powerful people, he lacked the ingenuity to use that power for anything other than a simple scam, that offered to multiply Bitcoin sent to an address.

As many pointed out, This was an extremely elaborate scam and executed on an extraordinary scale. In fact, as the hack expanded beyond the characters known in the world of cryptocurrencies as CZ, and step towards global figures like Barack Obama, Elon Musk and Jeff Bezos, Many They saw Donald Trump’s profile and became desperate.

Given the the President has used Twitter to announce policies, as well as for engage in high-profile conflicts against the leaders of Iran and North Korea, during which the American troops were suddenly forced to plan new mobilizations, the reminder of Twitter’s vulnerability as a centralized platform was sinister.

For the record, Trump’s profile remained intact. But in the last months There has been a lot of talk about limiting the authority of social media platforms because of their importance to public discourse. But this is almost a reverse problem for government figures like, Joe Biden, who can potentially be hijacked from a high-profile public profile. You can expect this recent trick, and the implicit threat to global order, to play a role in future conversations on the subject.. On the other hand, the Blockchain industry use this to promote decentralized analogues to social media giants.

Either way, Keep in mind that whoever was behind this ruse only got about $ 121,000 net. Certainly not great news for the reputation of cryptocurrencies in the public, But it’s hard to see that this event is primarily about instant winnings.

A Supreme Rupee

The author of an infamous proposed cryptocurrency ban in India has spoken, telling the industry that it is not a total ban at all.

Former Finance Secretary Subhash Chandra Garg said the real objection to cryptocurrencies in the bill it is its use as currency. He said that such a measure It would allow investment in cryptocurrencies as a digital product.

If so, this is a message that the media, including Cointelegraph, have confused in the past. But also, that seems like a remarkably fine line to move. If you can exchange cryptocurrencies as merchandise, What about peer-to-peer transactions? How is it possible to leak all of that into categories like “suspiciously like currency”? And so how do you really hold such a responsible criminal accountable?

Garg’s concerns are very common among regulators, who see cryptocurrencies as a threat to monetary sovereignty. In places like Venezuela or Zimbabwe today, avoiding the current government’s monetary authority is a hugely optimistic argument for Bitcoin. But also, it seems clear that The full implications of such a ban in India, a country with almost 1.4 billion people, have not yet been adequately established.

They are not my citizens, they are still my problem

After considerable tug-of-war rounds, the two US federal investment regulators, the SEC and the CFTC, jointly fined crypto-based app Abra, for its synthetic exchange service, which translated price movements into US stocks and ETFs in changes to the guarantee that investors put on BTC and Litecoin.

The fines themselves were quite nominal, totaling $ 300,000, which is unlikely to stop the app, but the case is definitely a loud warning shot for various reasons, between them, the fact that mixed exchanges are one of those areas that trigger action by the SEC and the CFTC. The nature of the jurisdictional limits of US financial regulators is also in doubt.

Abra had withdrawn its synthetic securities service in February 2019 at the behest of the SEC. The company resumed it later that year, after excluding US investors and registering a subsidiary to offer the service in the Philippines. The new intervention of The SEC and CFTC clearly place a flag on new territory: Neither agency suggests the company offer these services to US investors, but they claim jurisdiction over Abra and its subsidiaries, due to the company’s California offices.

Once again, $ 300,000 is not a particularly draconian deal, but it wasn’t either Block.one. He is a precedent for the expansion of authority.

Further reading

Peter Van Valkenburgh from, Coin Center, exposes what recent legislative threats to encryption They mean (and don’t mean) for cryptocurrencies and decentralized networks.

JDSupra has updated your information on state and federal laws when it comes to cryptocurrencies to include, among other things, new licenses in Louisiana.

Patrick Tan reflects on how China’s CBDC could provoke a boost to cryptocurrencies by citizens concerned about their privacy.

Keep reading:



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the response to flood attacks on Bitcoin’s Lightning network


Developers have proposed the “anchor channel” mechanism as a solution to a vulnerability in Bitcoin’s Lightning (LN) network that could put its users’ funds at risk. The proposal seeks to curb possible attacks that take advantage of Time Blocked Hash Contracts (HTLC) by “flooding” the LN channels.

Through his mailing list, developer Alex Bosworth highlighted the proposal for “anchor channels” that has been on Github since mid-April, signaling the reactivation of the process. Bosworth, who works for Lightning Labs, alleged in his email that, while the proposal may not present “conclusive” improvements, it at least points in the right direction and “increases the cost and complexity of attacks.”

“The big change here is to make it easier to drive predictable rate-rise execution through ‘anchor exits’: compromise transaction exits that are designed to help increase these commissions with CPFP.”

Alex Bosworth, developer at Ligtning Labs.

In the publication Available at the repository, Lightning Labs developer and CTO, Olaoluwa Osuntokun (Roasbeef), states that the intention is to ensure that potentially vulnerable transactions, those tied to HTLC, arrive on time to a Bitcoin block to avoid claiming funds from a possible attacker.

HTLCs are used for network operation of Lightning’s pay channels. These contracts establish a guarantee that the intermediate channels used in the process will not maliciously seize the funds, although this process has an expiration period measured in blocks of the Bitcoin chain. In cases like the lnd client, the limit is 10 blocks.

The attack that flooded everything

Recently, researchers Jona Harris and Aviv Zohar of the Hebrew University of Jerusalem published research that explains a vulnerability and possible attack that would endanger funds in the Bitcoin payment channel network.

One of the characteristics of the attack explored by the researchers stems from the impossibility of the owners of the attacked channels to set their own rates for transactions. Victims depend on the commissions set at the time of the channel’s opening, which may not correspond to those necessary in a scenario of high Bitcoin congestion.

bitcoin attack LN network
The attack would take advantage of the inability of channel owners to set their own transaction fees. Source: Rawpixel / elements.envato.com

“Our attack is made even easier as the Lightning protocol allows the attacker to increase the rate offered for their own transactions,” the researchers wrote in their report.

As reported by CryptoNews at the time, Zohar and Harris evaluated in their study possible ways to mitigate risk, among which the anchors method stands out, seeking the guarantee of confirmation of the transactions that the attacker would seek to prevent.

For this mechanism, the use of CPFP would be implemented (children pay by parents). CPFPs allow you to expedite transactions by submitting a new transaction that spends funds from the unconfirmed transaction, but with higher fees that ensure its inclusion in a block quickly.

Anchor Channel Response

The solution lnd developers are currently exploring seeks to ensure that HTLC and channel closings reach their blocks on time even in Bitcoin core network congestion scenarios.

“One of the primary goals of anchor products is to be able to adjust rates to ensure that both the compromise transaction and possibly disputed HTLCs reach the block on time.”

Olaoluwa Osuntokun (Roasbeef), developer.

The main novelty of this proposal, for practical purposes, is the ability to adjust transaction fees to confirm HTLC based on the status of the Bitcoin network to ensure the necessary confirmation. For this, entry time limits would be defined in a block of the HTLC.

Among the comments on the Github, the collaborator yyforyongyu has raised establish standardized action ranges to set commission increases.

In his approach, yyforyongyu commits the possibility of taking three different actions depending on the scenarios. Assuming that the limit block established for HTLC confirmation is still far away, the transaction would not be rushed with new commissions. In case the number of blocks is at an intermediate distance, a gradual adjustment of the commissions could be made. But if too few blocks are missing, it would go up to the maximum commission to guarantee confirmation.

LN bitcoin block transaction
The solution seeks to guarantee the inclusion of transactions in a block of the Bitcoin chain. Source: Gerd Altmann / pixabay.com

One of the problems facing the proposal arises from the total amount of loot that a potential attacker points to. Among the comments, developer Joost Jager (from Lightning Labs) wondered how much the maximum commission would be willing to pay to avoid potential theft.

For yyforyongyu, that amount is set by the user. Although, more than the problem, this collaborator considers the effort of the proposal as a way of increase “the chances of success” in the face of vulnerability scenarios.

Possible arrival of the solution to the Bitcoin Lightning network

Flood attacks are not new to the Bitcoin Lightning network ecosystem. Already in early March, CryptoNews reported the findings of a study that pointed to this vulnerability.

In that report, Zohar himself (co-author of the most recent study) and Ayelet Mizrahi had established LN’s vulnerability to congestion attacks on pay channels. In addition to Lightning, other payment channel networks, such as Raiden, would be vulnerable to these scenarios, the researchers reported at the time.

The anchor channel proposal was created on Github in mid-April this year. But it was not until the beginning of July when various developers began to participate and comment. This activation of the project coincides with the publication of the report by Zohar and Harris.

Previously in June, Roasbeef started developing this solution. That same month, the developer set a goal to have this vulnerability response ready for the next version (0.12.0) of the lnd implementation of the Lightning network.

There is currently no set date for this to occur. And if we see the progress of the project on Github for that lnd update, we find that it is in an early phase.

Being a network still in beta phase, it is common to find errors and vulnerabilities in the Bitcoin Lightning Network. Therefore, updates and solutions are also constant.





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Where, oh where has Bitcoin’s volatility gone? Part 2


At the same time that volatility and short-term implied volatility have been sucked out of the market, options with longer expiration dates (about six months to expiration) are still trading closer to their historical average volatility in the range of 70%. This bias in the structure of the terms of implied volatility suggests one of two things: Investors hope that this period of low volatility will be transitory and that a catalyst in the coming months will shake the markets again, or perhaps option sellers are simply not willing to make a longer-term bet.As such, they are not providing any longer term offer on these options. The result is a steep term structure that could present an opportunity for the volatility savvy trader.

Implied volatility is an interesting asset for trading. Most individual investors who use the options as part of their investment strategy do so for speculation or protection purposes. They could even employ income-generating strategies by selling options against their holdings. They tend to focus on prices: At what level do you think this asset can go before it expires? Where would they be willing to sell or buy it? While the nuances of volatility and option pricing may not be obvious to everyone, every trade a trader makes is implicitly taking a stand on implied volatility.

On the other side of individual investor’s operations are options market makers. These players think almost of nothing but implicit volatility. The goal of a market maker is to keep his net position as flat as possible, while charging a buy / sell spread on each trade. The probability that the order flow is balanced on each option hit and expiration is essentially zero, so they use the implied volatility curves and the term structure to relate the prices of the options to each other, keeping their risks balanced even if your position becomes a mishmash of long and short call and put options on all the different bumps and maturities. Option market makers prefer to have all their risks balanced, but when customer order flow is concentrated in one direction, sometimes that just isn’t possible.

The result of this unbalanced order flow, with investors cheerfully selling short-dated options while reluctant to sell longer-dated options, has led to an extreme tilt in the volatility term structure implicit in Bitcoin’s options ( BTC). At the time of writing this article, according to the Skew data analysis service, the implication in option prices (as illustrated by the implied future volatility, which is the volatility calculated between two specific maturities) shows the expectation that volatility will be 30% in the next week, the last week of July will see a volatility of 50%, the month of August will see 60%, and the month of September will see 70%.

Bitcoin ATM volatility term structure

Perhaps the market is right and has great insight into when the current low volatility environment will end. But the flow of orders is most likely to be so unbalanced between maturities that market makers have twisted the term structure to levels that present some opportunities for positive expectations.

If traders wanted to express the view that the current cycle of low volatility reinforced by continued short-term option selling will continue, they would do well to sell both call and put options with expiration dates in six to eight weeks, right after from the tipping point at which implied volatilities really start to fall.

If the current environment continues, they are likely to see gains not only from collecting the decline in the option premium, but also from the implied volatilities “rolling down” the term surface of the structure. If they wanted, or needed, for margin purposes, they could hedge some of the risk of an unexpected event by buying a few options with much longer maturities and a few contracts with cheap, short-term maturities as well.

No one can predict exactly when the next high-volatility market event will come, but it’s likely not tomorrow. It is more likely to happen within the next month, and even more likely than that – within the next two months.

It is very reasonable that the structure of the volatility term has an upward slope, but the current inclination in that slope implies a specific time frame for the resurgence of the highest volatility that will occur in early August. This implication is very likely to be priced in the Bitcoin options market not because it is the actual forecast, but because there are many investors willing to sell options for two weeks, while there are few willing to sell options for one month and two months. .

If a trader has an appetite for this risk and believes that there is no specific reason for the realized volatility to double in the coming weeks, he could theoretically receive a large premium for selling those options.

This is the second part of a two-part series on Bitcoin volatility – read the first part on the rise and fall of BTC volatility here.

This article does not contain investment advice or recommendations. Every investment and trade move involves risk, readers investigate for themselves when making a decision.

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article was jointly written by Chad Steinglass and Kristin Boggiano.

Keep reading:

Chad Steinglass She is president and co-founder of CrossTower, an exchange. Kristin is an expert in structured products, regulation and digital assets who brings over 20 years of experience as a trade and regulation attorney and over nine years in digital asset trade and regulation. Before founding CrossTower, Boggiano was Legal Director of AlphaPoint, Managing Director of an algorithmic trading platform in Guggenheim, and Special Advisor at Schulte Roth, where he founded the Structured Products and Derivatives Division and led the Dodd Frank Regulatory Group. Kristin is also the founder of the Digital Asset Legal Alliance and Women in Derivatives. She earned her law degree and MBA from Northeastern University and her BA from Sarah Lawrence College.

Kristin Boggiano He is the head of operations for CrossTower, an exchange. He has more than 15 years of experience in trading derivatives, indices and credits. He was the creator of an options market at Susquehanna and Morgan Stanley and chief operating officer of a Guggenheim division. He was also a portfolio manager for capital structure arbitration at Jefferies. He is an expert in market dynamics, market microstructure and automated market and trade creation systems.



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Cryptocurrencies that outperform Bitcoin, BTC mining investment boom and much more



The patient is still asleep. We know that he is alive, because he still has a pulse and there is breathing. But Bitcoin has fallen into Odin’s dream. Neither up nor down, because that sea froze and now we have a flat and infinite line. Gentlemen, we are in an eternal lethargy. There is no other choice but to wait. This does not end until the fat woman sings. Nothing is happening yet, but something will have to happen.

Now let’s talk to the most read crypto news of the week.

No one has ever blocked the tickets in my pocket. However, I did have a couple of issues on crypto exchanges. On one occasion, some funds were temporarily blocked. Again, my account was closed overnight. Of course I’m not going to say the exchange, (brittex). For security reasons, I have lost access to my account for a while, on a couple of occasions. The key invalidates more than three times or something like that. Even though I would love to hit the piñata attacking the dollar at this party, it would feel very strange to do it knowing that similar things have happened to me with Bitcoin. Oh, but it’s not Bitcoin, it’s the exchanges! Well, it’s not the dollar, it’s BBVA.

Custody in the hands of a large bureaucracy (a bank) closely linked to another large bureaucracy (State). Here is the heart of the matter. I have a friend who one day called me desperate, because he opened a wallet to his father-in-law with $ 1000 in Bitcoin and forgot the password. “Gustavo, help me, if I don’t get those funds back, I’m going to have to put that money away,” the poor devil told me. What did I tell you? Take it easy, write to customer support and they’ll give you a new password. ” Problem solved. The man is still invited to eat at the girlfriend’s house, thanks to the fact that he did not have custody of his wallet. I mean, not everything is bad. Trusting a third party also has its advantages. Recall that a market obsessed with not trusting a third party is ironically dominated by centralized exchanges. So we are not so pure.

The custody dilemmas. The flexibility of a market without much regulation. The risks of a market without much regulation. The fragility of individual responsibility. The convenience of trusting a third party. And the danger of trusting a third party. In my opinion, a solution is in better FinTech applications. With good software and a better system, bureaucracy can improve. I mean, technology helps. The solution (or part of it) is better codes and better algorithms. The other is adequate regulations. Not so bald, not even with two wigs.

Predicting the weather has never been easy. No one wants to be that reporter on the channel. People who watch the weather channel to choose their daily outfit know very well what I’m talking about. It is best to forget about predictions and prepare for all climates. It never hurts to have a coat and some umbrellas in the car. Never leave home in a bathing suit due to an optimistic prediction. And much less, if still, it is winter. Here is the detail. Winter does not end with a decree. Winter ends when the heat begins.

The current lateral trend is such that we are almost a song away from calling Bitcoin a stablecoin. Volatility is almost zero. And what is this telling us? If volatility is indecision, stability is decision. Which means that the market is obviously comfortable with the current price. Why is a change announced, if there are no crosswinds? For boredom. But for me, it is not yet a summer but an autumn. In other words, a lateral universe. Neither hot nor cold. It is not winter. It is not summer. But he is not so happy as to say that it is a spring. Autumn? For this to change, something must happen. Give me three hurricanes (rallies) in a row and we can start talking about rises and suns.

When the department store closes, the corner kiosk thrives. And because it is a small business, it can afford higher margins. Obviously it is something that cannot climb very long nor last long enough. But if it is Sunday, there is mass, and the big shops are closed, because, suddenly, it is worth going out to buy an ice cream and the newspaper at the kiosk. The DeFi boom has benefited Ethereum by association. And investors have gone hunting for the next miniboom in the jungle of altcoins. Well, not everything is Bitcoin and suddenly there are a couple of interesting projects out there. Which are? Well, you have to explore.

There is action everywhere except in Bitcoin. Robinhood traders are partying on Wall Street with companies like Tesla, Netflix and Amazon. Gold is about to reach its all-time high. And a waterfall of money is falling from the skies thanks to our fairy godmother, the Federal Reserve.

While all of this is going on, Bitcoin is hibernating in its cave. He doesn’t wake up even with the noise of the rockets. Of course, cryptonnates are very restless to sit and just sit still on the dock of the bay, wasting time. That wild energy must be channeled. The answer so far has been altcoins. It’s something temporary? Is it the beginning of a season? I think we will see that when the beast awakens. When Bitcoin moves, we will know.

Elon Musk is a brilliant startup founder, but it remains to be seen how good he is as an industrialist. That is, he knows how to found a company and that it takes a lot of value. Create a product, sell a dream, and make investors fall in love. But does it generate corporate income? In other words, does the dream translate into company profits for years and decades? Investors are paying for their dream and for possible, probable, hypothetical future. And they do that with a smile. Because they are in love with Elon and love does not listen to reasons.

While it is true that the billions you have on paper have gone up tremendously usefully, it is important to note that it is still too early to claim victory. Tesla is not Amazon, Microsoft, or Berkshire Hathaway. Its rise is much more speculative, because it is based on a future that has not yet arrived. Of course I’m not saying that Tesla is a fraud. Only that future earnings are more risky than past or current earnings. The future changes all the time. We cannot take anything for granted. In other words, regarding the dizzying rise in Tesla’s shares I wouldn’t be surprised to see a dramatic correction in the future.

Well, it is always great news to hear that the mining industry is going strong. The halving was practically yesterday and there are miners investing in the future. While it is true that everything seems to indicate that the small miner is being crushed by the big ones, that does not mean that it is the end of the world. It is foolish to think of the idyllic past and dystopian future with respect to centralizing mining. After all, how many miners did we have in the early years? We must remember Bitcoin started with a miner: Satoshi. Big or small. Miners, welcome! Thank you for your great work.



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better than DeFi and Yield Farming to generate passive earnings


Diving into the world of investment can be risky, especially considering that cryptocurrency exchanges are fast and highly volatile. However, there is a platform that is changing the game for everyone.

ArbiSmart.com offers crypto investments at almost zero risk, with profits reaching up to 45% per year. The company was founded in early 2019 and has acquired an excellent reputation for safe and transparent investment. In social media, ArbiSmart reviews are extremely positive and the company is getting a positive rating from everyone, with the review site Trustpilot which gave it a five-star rating.

What is ArbiSmart?

ArbiSmart is an automated arbitration platform equipped with an EU-licensed crypto wallet.

Crypto arbitrage is a trading strategy which is widely recognized for exposing the investor to minimal risk. It involves scanning multiple exchanges simultaneously to find and take advantage of price inefficiencies and this is commonly achieved using a bot. The automated system purchases a given cryptocurrency on one exchange at the lowest available price and then sells it instantly on another exchange at the highest available price, making a profit on the spread, before the inefficiency of the price can be corrected.

ArbiSmart

ArbiSmart uses an AI-based machine learning algorithm to perform a huge volume of exchanges at one time. Integrated with over twenty different crypto exchanges, the platform is active 24 hours a day, 7 days a week, monitoring the prices of cryptocurrencies so that you can identify and seize the opportunities of crypto arbitrage as they develop.

How difficult or easy is the investment process?

One of the main advantages of the ArbiSmart system is that in addition to being the platform chosen by countless professional investors, it can also be used by those with zero investment experience.

Since the platform is fully automated, once the registration and deposit is done, the algorithm will do all the heavy lifting, taking over the reins and executing the transactions for you. You can always log in with your account, tracking the progress of your portfolio, and you can withdraw at any time.

Registration is quick and easy, and even depositing funds is effortless. You don’t even need to own cryptocurrencies to get started. You can make a deposit in BTC or ETH, or if you prefer, you can simply send a bank transfer or use a credit card to load your account with fiat.

These funds are then converted into RBIS, ArbiSmart’s native token, the value of which is constantly increasing. However, when you need to make a withdrawal, you can access your monthly profits in euros at any time. The withdrawal process is quick and hassle free. If the money is present, then it can be withdrawn without delay, directly into your bank account or on a crypto wallet.

How much can I expect to earn?

Profits range from 10.8% to 45%, with a variable amount depending on how much you invest. In addition, as stated by ArbiSmart regarding transparency, if you take a look at the account page of the company, you will see the monthly and annual profit band, for each of the account levels.

Obviously, the more you invest, the more you earn. So, for example, let’s assume that in May 2019 you decided to invest 100,000 euros, and then you will have achieved 3% per month and a total of 36% of pure profit in just twelve months. This means that you will have earned € 3,000 in passive income every month, without having to lift a finger and € 36,000 in one year. Within two or three years, you will be rewarded with capital greater than 200%, all with minimal effort and almost no risk.

It is also worth noting that, in addition to your passive income from crypto arbitrage trading, you are also benefiting from the fact that the price of the RBIS token is constantly increasing and, based on its current trajectory, it is on track to increase by 2000. % in a very short period of time. Unlike Bitcoin, which was initially difficult to buy, with little information and no support, if you want to operate with RBIS, you will be able to benefit from a consolidated framework of support and regulation with a huge and constant growth potential.

For your convenience, ArbiSmart offers a smart investment calculator which allows you to estimate your earnings over a certain period of time, or to calculate how much you will have to invest to achieve a specific profit target within a certain period. It takes into account a number of factors that affect your profit potential, such as compound arbitrage profits.

How protected are my savings?

As an EU-licensed platform, ArbiSmart guarantees the integrity of your account. Regulatory compliance involves protecting your account in a variety of ways, including external oversight, rigorous technological security standards, and creating a customer insurance fund to cover investor funds in an emergency. In addition, the KYC requirement and anti-money laundering documentation safeguards against fraud and other forms of criminal activity.

ArbiSmart also establishes itself as a reliable and trusted investment partner by creating open and direct communication channels with customers. It’s possible contact support through different channels.

What else is there to know?

Currently, ArbiSmart is about to launch its EU-licensed wallet, which will be available around August 2020. The wallet will be a separate tool from the ArbiSmart crypto arbitrage platform, offering you a safe place to store your cryptocurrencies, without having to convert your funds into RBIS.

ArbiSmart

ArbiSmart will use your funds for crypto arbitrage operations and in return you will earn interest of up to 45% per year. This is a great way to make a profit from your funds rather than leaving them in a normal wallet.

The process is simple. All you have to do is to deposit fiat or crypto into your wallet and then transfer the money to a savings account to start earning interest. Your profits will depend on the amount you pay and the type of account you choose. If you deposit your capital into a closed account, then you can get more interest, which grows as liquidation times increase. Also, if you convert your money into RBIS, the interest rate increases further.

Basically, what are the highlights?

ArbiSmart ticks all the boxes. It is a regulated and reliable platform, it offers first-class personal support and, above all, generous profits on a monthly and annual basis which can be withdrawn in euros, BTC or ETH at any time. The platform is fully automated, providing constant, passive, guaranteed income with minimal risk and zero effort, while the investment process, from registration to withdrawal, is simple and direct.

To learn more about ArbiSmart, you can consult the website, or you can start investing right away by signing up here.





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Cardano’s ADA price continues to rise as Goguen update approaches


Bitcoin (BTC) volatility, which has reached its lowest level since late 2018, has forced investors to turn to altcoins that could act as more lucrative investments in their portfolios. Cardano (ADA) has been one of the greatest benefactors of this movement. Its price has risen around 400% in 2020; its market capitalization has nearly quadrupled to outperform Bitcoin SV (BSV); and it has become the fifth largest cryptocurrency in circulation by market capitalization.

The recent spike in prices has demonstrated the faith that the community and industry have in Cardano’s roadmap, in his vision and in its founder, Charles Hoskinson. ANDThe project, however, is still in its early stages. There is still much to demonstrate to Cardano regarding the execution of his plans and the recognition of prominent entities such as Ethereum.

However, Ryan Fung, the CEO of Ankr – a firm that provides cloud solutions for Blockchain applications – is more confident in the proven skills of Cardano, the community, and its network. Speaking also of his holdings in Cardano, he stated:

“The price spike has been tremendous as it has broken two levels of resistance. We have been watching Cardano for over a year with his development from testnet to mainnet. The network has emerged a lot, and the spike in The prices have demonstrated the strong market sentiment of the project and the community’s confidence in the project. “

Shelley’s upgrade and staking

The price hike in 2020 skyrocketed following the announcement of the Shelley update on May 25, and even more so when Cordano began releasing the code for Shelley on July 7. This update is said to be unique because Cardano claims it will make the network 50 to 100 times more decentralized than other prominent Blockchains. It has also allowed cryptocurrency staking to reach 1,000 staking pools.

In contrast to Bitcoin’s Proof-of-Work algorithm, Cardano works with a PoS algorithm called Ouroboros. PoS is a method that secures a decentralized Blockchain network by allowing people who have that Blockchain’s tokens to validate transactions and blocks. This process allows stakers to earn tokens, also known as block rewards, proportional to the amount in stake. Fung further commented that the implementation will open competition for consumer adoption, adding: “It is a very bold and challenging move to implement. ETH has been trying to do this for over 2-3 years. But the fact that Cardano was able to achieve the consensus protocol on the Proof-of-Stake algorithm is commendable

Cardano’s incentive testing network was thrown First time in December 2019 to allow rewards for engagement during Shelley’s update trial period. Currently, there are more than $ 13 billion ADA staked on ITN.

Smarter contracts, the Goguen Era

The term “smart contracts” was introduced about 26 years ago by crypto expert Nick Szabo and has been one of the most comprehensive developments in the crypto industry. Smart contracts are computer-maintained transaction protocols that are intended to automatically execute, control, or document transactions according to the terms of the contract.

For Cardano, the implementation of the Goguen era will take smart contracts one step further towards “smarter contracts.” While smart contracts eliminate the need for manual intervention for interactions on a particular Blockchain, the Goguen mechanism will not prioritize ADA transactions and contracts over other tokens issued in Cardano, as Ethereum for Ether (ETH) does. about the ERC-20 tokens.

Related: Here Comes “Shelley”: ADA Price Stands Out With Next Cardano Update

Bakyt Azimkanov, director of communications and marketing for Cardano, told Cointelegraph how the Goguen era will create use cases through decentralized application: “The Goguen era will pave the way for mission-critical and enterprise-level decentralized smart contract application development, which is the crucial first step in building and deploying real-world solutions in Cardano.Sumit Gupta, Co-Founder and CEO of CoinDCX, shared his opinion with Cointelegraph:

“Instead of being a single-asset ledger, Cardano will become a multi-asset ledger that will allow users to define, forge, and transfer their custom tokens across the network. The Goguen update will help developers build decentralized applications on the Cardano Blockchain network with greater flexibility. “

This mechanism is intended to provide developers more security on the network, as all tokens will inherit all the security and smart contract behaviors that Cardano’s native cryptocurrency, ADA, would have. Azimkanov stated in this regard:

“In the deployment of decentralized applications built on blockchain protocols, smart contracts become particularly useful. By virtue of their unreliability, users can interact with Web 3.0 applications without entrusting their sensitive information to the developer of the application, and the developer or creator of the smart contract receives a guaranteed automatic settlement at the expiration of the contract. “

Community interest increases

Cardano has been looking to solve problems that have already been found on other platforms like Ethereum and Ripple. This aspect allows the platform to bring more investors without diluting its base of believers who do not have the currency to speculate or hedge against another bet in their portfolio.

Looking at the composition of the one-year ownership structure, it’s clear that Cardano has seen continued support, with the share of hodlers consistently above 50%. However, the share of traders has also increased significantly in 2020, demonstrating that ADA has begun to see more volatility in anticipation of Shelley’s official launch.

Ownership by time held

Even Ryan Selkis, founder and CEO of Messari, recently stated that Cardano has “a lot of room to grow” and that the recent price increase highlights the excitement surrounding Shelley’s bid for improvement. The announcement that ADA holders could put their assets into Coinbase custody by the fourth quarter of 2020 has further fueled speculation that ADA may be listed on Coinbase later this year.

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Where, oh where has Bitcoin’s volatility gone? Part 1


The first half of 2020 has been crazy for almost everyone in all asset classes. In early March, When it became clear that COVID-19 was a seismic event, asset markets around the world collapsed. An important reason was that Leveraged investors suddenly received margin calls and were forced to liquidate assets to satisfy them.

When the only thing that matters to someone is cash, there is no safe asset or defensive investment. During the crisis, companies rushed to access their revolving lines of credit, reinforcing cash reserves as quickly as possible, fearing that if they did not do so today, that credit would not be available tomorrow. The supply of risk securities plummeted, and prices began to drop. Bitcoin (BTC) and other cryptocurrencies were no different than stocks – just another asset that investors had to sell to get US dollars.

Only after the United States Federal Reserve dumped massive amounts of cash into the banking system did cash hoarding decreaseAnd soon after, everyone rushed to put their cash to work in the financial markets. Cryptocurrency markets stabilized and rebounded along with equities. During this time, Both Bitcoin and stocks were experiencing extreme volatility, and this uncertainty was reflected in the options markets for both.

As markets slowly began to show strength, implicit volatility measured through option prices also began to settle. Implicit annualized one-month forward volatility hit 80% in the S&P 500 stock index, peaking at 180% in BTC at the height of the panic, March 16. Over the next few weeks, volatility was less and less, although it remained high relative to historical averages.

After the madness of late March and early April subsided, traders turned their eyes to the next on the horizon. For BTC, the next big thing was the next halving of mining rewards. There was much speculation on all sides as to what would happen when the clock passed the fateful time of May 11. Would prices skyrocket? Would they collide? Wouldn’t anything happen at all? Was everything included in the price?

No matter which side of the debate investors fell, everyone could agree on one thing – halving could be a catalyst for a market move, and it might be worth having some downside protection or upside exposure to take advantage. her. The fact that this possible event was on the horizon prevented the volatility implicit in the options from falling too quickly, even as the actual volatility began to settle. Essentially, the market seemed to agree that the options must have some additional value because of the uncertainty of the halving. HTowards the end of April, despite the fact that the realized volatility settled in the range of 65% -70%, the implicit volatility in the horizon began to rise as the demand for options increased, reaching 95% immediately before halving.

Bitcoin ATM implied volatility

After the halving passed, and proved anticlimactic, there were far fewer reasons for investors to have options, particularly shorter-dated maturities. Holders of long call and put options began to close their positions, selling those options to market makers, and even more of those holders decided to take short positions. As market makers began to get longer options on short-term maturities, the implied volatility decreased aggressively.

At the same time, market makers were covering their books to the best of their ability. One of the most common coverage strategies in this scenario is gamma coverage. When a position is a long option (either buy or sell, as market makers can easily hedge the sensitivity of the first order to the price of the underlying), and especially with near-date options, the position has a positive gamma or positive convexity. That is, the risk profile appears to be longer and longer as the underlying asset rises, and shorter and shorter as the underlying asset falls. In this case, to balance that risk, market makers had plenty of BTC to sell every time BTC went up, and plenty of BTC to buy every time BTC sold.

This gamma hedging action can lead to a positive feedback loop between implied and actual volatility. As realized volatility falls, investors are comfortable because they don’t anticipate anything crazy happening in the market anytime soon and are more willing to sell options. As they sell more and more options, market makers accumulate long gamma positions, thereby reducing the volatility implicit in their price models. They also actively hedge this long gamma position, selling BTC when it is on the up and buying when it is down. This act of hedging the gamma, in the absence of other external factors (such as big news or a large influx of investors entering or leaving cryptocurrency markets), creates a buffering effect on volatility. This cycle continues, pushing the front of the implicit volatility terms structure continually lower while simultaneously creating upward resistance and downward support for BTC prices.

BTC / USD realized volatility

We have seen this effect develop substantially since the end of May. The realized volatility has fallen below 30%, close to multi-year lows despite the objectively uncertain world we currently live in. However, even slightly longer dated implied volatilities, in the three to six month range, are still trading close to the long-term historical average, in the 60% -70% volatility range. Either the current low volatility feedback loop environment will come to an end soon, or perhaps there are some smart trades to do to take advantage of the disconnect from implied volatilities in the coming months.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you must do your own research when making a decision.

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article was jointly written by Kristin Boggiano and Chad Steinglass.

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Kristin Boggiano She is president and co-founder of CrossTower, an exchange. Kristin is an expert in structured products, regulation and digital assets who brings over 20 years of experience as a trade and regulation attorney and over nine years in digital asset trade and regulation. Before founding CrossTower, Boggiano was Legal Director of AlphaPoint, Managing Director of an algorithmic trading platform in Guggenheim, and Special Advisor at Schulte Roth, where he founded the Structured Products and Derivatives Division and led the Dodd Frank Regulatory Group. Kristin is also the founder of the Digital Asset Legal Alliance and Women in Derivatives. She earned her law degree and MBA from Northeastern University and her BA from Sarah Lawrence College.

Chad Steinglass He is the head of operations for CrossTower, an exchange. He has more than 15 years of experience in trading derivatives, indices and credits. He was the creator of an options market at Susquehanna and Morgan Stanley and chief operating officer of a Guggenheim division. He was also a portfolio manager for capital structure arbitration at Jefferies. He is an expert in market dynamics, market microstructure and automated market and trade creation systems.



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Fun facts about hacking Twitter to steal bitcoins


This Wednesday, July 15, Twitter suffered the largest hack in its history. The direct consequence, beyond the takeover of large accounts within the social network, was the theft of more than $ 100,000 in bitcoin, although other data draws attention to the incident.

Hacking started with the takeover of the account of the renowned trader AngeloBTC. Then followed by the Binance exchange house. Changpeng Zhao, CEO of the exchange site, reported the fact shortly before his own account fell victim to the attack.

Between the first message and the last post, which was made from Kim Kardashian’s account, about 4 hours passed. During all that time, the attackers were able to take control of dozens of verified accounts with up to 120 million followers, such as the case of former United States President Barack Obama.

Another curious fact about the Twitter hack is the alleged panel through which the affected accounts could have been taken control, among which stand out politicians, companies, artists and personalities of the cryptocurrency ecosystem.

Motherboard, technology-focused area of ​​Vice magazine, public screenshots of that control panel. In the images, you can see the panel interface, with data such as the number of followers of an account or its status. Another of the graphs shows directly the visualization in the panel of one of the affected accounts, that of the exchange house Binance.

In total, the attack allowed to steal more than $ 120,000 in bitcoin. According a HackerOne post, one of the most widely used computer rewards sites, Twitter’s rewards program offers no more than $ 7,700 for finding a vulnerability that allows account control. Theft in BTC was about 16 times more profitable.

Trends, implications and “opportunities”

The attack placed Bitcoin among the trends of the social network to U.S and Canada. Also in the Google search engine, the term had a peak of interest from users. At one point, during the night of this Wednesday, the word “bitcoin” reached the maximum interest (100) according to the index from Google Trends.

robbery-bitcoin-hack-twitter
On Wednesday night, there was a spike in Google searches for “bitcoin”. Source: Google Trends

During the attack, someone registered a web domain with the main address used by hackers. In said domain a message is currently housed warning potential victims not to fall for this scam.

warning-hackers-theft-bitcoin
Message published in the domain of the Bitcoin address used by hackers. Source: Screenshot.

One or more Monero fans took advantage of the event to enter messages in favor of said cryptocurrency focused on privacy at the address used by attackers to receive bitcoin from the scam.

messages-bitcoin-monero-hacker
“Bitcoin is traceable”, “why not Monero?” or “you risk using Bitcoin” were some of the messages published. Source: Blockchain.com browser.

The Twitter hack triggered all kinds of reactions. But one of the reflections that stands out is the question of what could have happened if the attackers had not used that power simply to steal money. After all, for four hours they were in control of accounts of highly influential personalities in the world. But they could still have very valuable data.

In that vein, Twitter user @zerohedge proposed a scenario in which the theft of bitcoins would have been nothing more than a parallel for something greater. For the period of time that the attack lasted, hackers were able to gather valuable information from compromised accounts and a next wave of this event could come, targeting the personalities affected during the hack.

Now comes the real fun: extortion of billionaires and presidents by billions in bitcoin in exchange for not leaking their direct messages to the public.

@zerohedge

Another possible future risk would involve future attacks, in case the hackers have left behind doors and logic bombs on Twitter during their attack, which could be exploited later. That is to say, There may be even more consequences as a result of this hack.

Peak trading with the bitcoin market calm

The addresses involved in the scam received over 13 BTC. Total inbound transactions to these addresses barely exceeded 400. However, data from jochen-hoenicke.de show a spike in the Bitcoin transaction pool this Wednesday afternoon, while the massive fraud occurred on Twitter.

It could be two unrelated events, although the theft could also have caused panic among bitcoin holders, due to the possibility of a significant drop in the price.

The truth is that, for a moment, the network was congested with more than 50,000 unconfirmed transactions, although that congestion lasted a short time. The mempool.space real-time trace shows some 28,000 transactions waiting for confirmation in Bitcoin, at the time of writing this article.

increase-transactions-network-bitcoin
On Wednesday afternoon there was a peak of unconfirmed transactions in Bitcoin. Source: jochen-hoenicke.de

The market, however, remains stable. Bitcoin’s price is at the levels of the past few days, holding above $ 9,120, according to CoinMarketCap data. The value of BTC has dropped just under 1% in the last 24 hours.

Some of the main altcoins have fallen between 2% and 3% between this Wednesday and Thursday. But others, such as tezos, stellar lumens and unus sed leo show green numbers, between 2% and 5%.

Representatives or personalities from the political field have not been involved in the issue so far. One notable exception is that of Minnesota District 6 Congressman Tom Emmer. Particularly, because his position It was in defense of the cryptocurrency created by Satoshi Nakamoto: “Bitcoin is not the problem. Centralized control is. “





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COMP launch catapulted DeFi growth into Ethereum, study says


Key facts:
  • The boost of yield farming due to the irruption of COMP adds more attractiveness to DeFi.

  • Amid the huge boom in DeFi, significant security challenges emerged.

Through a tweet from Ethereum co-founder and Consensys founder Joseph Lubin, the publication of the report on DeFi’s growth in Ethereum in the second quarter of 2020 was announced on Tuesday. The report was published by the Codefi unit of Consensys, dedicated to decentralized finance systems.

Among the highlights Of the report, it is noted that the presence of Bitcoin-anchored tokens on Ethereum outnumbers BTC on the Lightning Network and that during the last quarter there were three security incidents that led to the theft of $ 26 million. Also highlighted the launch in mid-June of the Compound governance token, COMP, responsible for the recent fever of yield farming on Ethereum.

According to the report, one of the main indicators of the boom in DeFi’s Ethereum operations, the blocked volume of ETH (including ETH-anchored tokens, WETH). This had reached an all-time high in the first quarterBut with the markets slumping on March 12, that volume fell to stagnate between 2.5 and 3 million ETH.

In mid-June, however, blocked ETHs recorded a 500,000 increase after the launch of the COMP token from the Compound loan platform, to end the quarter with a new all-time high or ATH of 3.3 million ETH blocked.

Following recovery after March 12, blocked ETHs reached a new all-time high in late June. Source: Consensys Codefi.

USD Locked Value Grows

When the $ 1 billion blocked in DeFi on Ethereum was reached on February 6, the total USD value of the blocked ETHs corresponded to 64% of the total, or USD 640,000. The remaining 36% of dollar value corresponded to ERC-20 tokens.

Codefi notes in its report that, for the second quarter, the dollar value of blocked ETHs doubled, from less than $ 400 million in early April to $ 750 million at the end of the quarter. From that increase, the report indicates, some USD 200 million emerged in the last two weeks of the quarter. This boom, he reiterates, can be attributed to Compound.

As for the users of the DeFi platforms, these remained most of the quarter between 3,000 and 5,000 daily users, interacting with the various decentralized protocols.

As of mid-June, however, there is an increase to 6,333 daily users, a figure reached on June 21. Overall, according to the report, 79,648 unique addresses interacted with a DeFi protocol on Ethereum during the quarter.

Daily active users on DeFi platforms on Ethereum. Source: Consensys Codefi.

While blocked ETHs have grown significantly since mid-June, the impact of COMP launch on total users of the DeFi ecosystem was not as noticeable as the growth of Compound platform users, indicates the report.

Compound users went from 30,000 to 40,000 at the end of June, but that increase only represented 3.42% of total users. This suggests that the majority of new Compound users turned to this protocol in the last two weeks of June, motivated by the benefits of yield farming, the document maintains.

Furthermore, the study addresses automated market generators or “makers” (AMMs), which are liquidity pools of two or more assets. These AMMs adhere to a smart contract that determines the price of each asset with respect to another asset in the pool, based on the volumes of each asset.

Uniswap, the report says, is one of the most successful MMAs on Ethereum, while in 2020 others like Balancer and Curve have emerged. In users, Balancer grew from zero to 4,000 users in the quarter, while daily users rose to 1,678. Of 260 ETHs blocked in early April, at the end of the quarter there are more than 45,000 ETHs blocked.

Bitcoin grows on DeFi

As reported by CryptoNews, operations with tokenized bitcoin or bitcoin-anchored tokens on Ethereum, especially WBTC, registered a significant increase in mid-May.

The following chart, which shows the accumulated balance sheets of BTC tokenized in Ethereum, during the second quarter, shows a staggered growth in May towards 5,000 BTC.

The amount of BTC blocked on DeFi platforms on Ethereum. Source: Consensys Codefi.

As of June 16, there is a noticeable boost of BTC in Ethereum, to end the quarter at 11,142 BTC, that is, USD 100 million in value is exceeded at the end of the quarter.

In the second quarter, the capacity of Bitcoin’s Lightning Network channels dropped from 1,093 BTC in early April to 960 BTC in late June, figures from p2sh.info. In WBTC alone, the second quarter started with approximately 1,000 BTC and that amount has been growing ever since. In Lightning Network there are limitations to increase the total capacity of the network, due to the maximum limit of 0.16 BTC per channel.

DeFi Security

The popularity of DeFi platforms is accompanied by a growth in malicious users trying to violate these platforms. When billions of funds are blocked in USD, the interest of hackers increases in search of weak points to exploit.

In the most recent security incident, one of Balancer’s multi-pool pools was affected. A smart contract was in charge of a complicated scheme, which took advantage of the intricate mechanisms of flash loans and a weakness of the smart contract that managed the so-called deflationary tokens, to extract funds from the Balancer pool. The attacker managed to steal, paradoxically following the rules of different platforms, about USD 450,000. Subsequently, Balancer returned the stolen funds.

In April there was another security contingency, as reported by CryptoNews. The Lendf.Me platform was the victim of a hacker that exploited a vulnerability in Ethereum’s ERC-77 standard on smart contracts, which resulted in a loss of around 25 million US dollars. Following the attack, the company reinstated stolen cryptocurrencies to its users.



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Kidnapped accounts and other scams with bitcoin that Twitter has failed to stop


A significant number of Twitter accounts belonging to prominent figures in the United States were hacked this Wednesday, July 15, to spread scams that promised gifts in bitcoin. The attackers hijacked accounts that have millions of followers, achieving 12.86584703 BTC.

Twitter recognized the situation several hours later, referring to it as a security incident. “We are aware of a security incident affecting Twitter accounts. We are investigating and taking steps to fix it. We will inform everyone shortly ”, they commented.

This particular scam has been running for weeks, though some date back months. However, what happened this Wednesday leaves some doubts in the air, who will fall after this? Why couldn’t Twitter stop him in time? Will a scam of such magnitude be repeated? These questions continue to wait for the official answers from the microblogging platform.

The pattern used was of the scam type promoted with the promise of “gift”, which has been evolving on Twitter. In fact, a similar formula has been produced since last October.

The attacker seized a verified account, changed the name to one that would give him the desired focus, altered the profile picture, and then posted a message that allowed him to spread the deception.

Also on Twitter is the scam known as phishing, which consists of sending fraudulent messages that they copy to other accounts, under the technique of identity theft. Their goal is to try to steal private information under deception. The Twitter Help Center has alerted about this modality.

Kaspersky, a company dedicated to computer security he pointed in 2018 that the first cryptocurrency scams that appeared on Twitter They were related to scam artists who pretended to be Elon Musk.

“At some point, Twitter started kicking out accounts that had changed their name to Elon Musk, as a prevention. So the scammers decided to exploit other Twitter celebrities like Bill Gates, Pavel Durov (creator of vk.com and Telegram), Vitalik Buterin (creator of the Ethereum cryptocurrency) and much more. ”

Kaspersky on cryptocurrency scams on Twitter.

Scammers later modified their modus operandi, so they began hijacking verified accounts, using them to increase the reach of their posts.

The British newspaper The Independent published a Article two years ago in which he alerted about scams that have managed to raise hundreds of thousands of dollars by posing as Elon Musk on Twitter in order to trick people into sending them bitcoin.

The article also references other verified Twitter accounts, including those of British retailer Matalan and US publisher Pantheon Books. These accounts were also used to impersonate Musk.

Once the accounts were hijacked, the hackers changed the names and profile photos, then used them to simulate that it was Elon Musk and then shared a tweet asking people to send them cryptocurrencies with the promise of returning double.

“More than 400 people sent bitcoin to an address associated with the scam, all under the false impression that they would receive a share of the fake $ 64 million gift. His transactions totaled 28.2 bitcoins, which are around $ 180,000 at the current exchange rate ”(USD 257,071 at the time of writing this note), said the article in the said media outlet.

In January this year, the Tesla CEO addressed the scams on Twitter when he appeared via video link to answer Jack Dorsey’s question about how to improve the platform.

It was also two years ago when Tyler Florence, a chef and television presenter for various Food Network shows, fell victim to scammers. His Twitter account, with 700,000 followers, was hijacked for 24 hours to share false promises of gifts in Bitcoin, pretending that it was Elon Musk.

The funny thing about the attack on Florence was that in the tweet in which the scam spread, a watermark was read with the word “promoted” at the bottom. This exposed that hackers paid Twitter to share these messages looking to trick followers into making cryptocurrency profit.

A scam that is perfected

Twitter hacker USA bitcoin
This Wednesday, July 15, billionaires Elon Musk, Jeff Bezos and Bill Gates are among the many prominent figures in the US who were targeted by hackers on Twitter in one of the most notorious attacks in recent memory. Source: Pete Linforth / pixabay.com

It was two years ago when a case was presented that is related to the pattern of the event that occurred this Wednesday, July 15. The official account of Twitter of the American store chain Target was kidnapped by scammers who decided to post an ad with their cryptocurrency scam. Also, the official Google G-Suite account was used for the same purpose.

The wording is almost always the same, although the promised bitcoin number differs and some entries have typing errors. “I’m giving 5,000 Bitcoin (BTC) to the entire community!” Reads the tweet promoted from Florence’s account.

“I have decided to make the largest crypto donation in the world, for all my readers who use Bitcoin. I left the position of Tesla director, thank you all for your support! ”Adds the announcement. The message includes an address in Bitcoin to send a payment in order to “verify your address.”

After two years with a history of attacks, the question continues to be left in the air: how is it that Twitter has not been able to stop these scams?





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Speculation and possibilities after the massive Twitter hack to steal bitcoin


There are several possible reasons behind the massive hacking of Twitter accounts that has led to the theft of more than $ 100,000 in bitcoin, during the attack perpetrated this Wednesday, July 15, on the social network. But there are more speculations and reflections that this incident has unleashed. Despite the fact that Twitter has already stated that it was “a coordinated social engineering attack”.

Among the affected accounts we find cryptocurrency exchange houses, such as Coinbase or Binance, in addition to the latter’s CEO, Changpeng Zhao. But the attack covers personalities of all kinds. Elon Musk, Kanye West, Kim Kardashian, Barack Obama or Bill Gates stand out, as reported by CryptoNews this afternoon.

There are several theories that personalities have managed on the same social network. Highlighted in the list are a massive hack to the Twitter database, a possible vulnerability against users with a double verification factor or external services with access to the platform’s system, tools such as Tweetdeck or Hootsuite. Another thesis is that of an internal work, which seems to support the statements of Twitter, reported on Thursday morning by CryptoNews.

Andreas Antonopoulos, renowned Bitcoin evangelist, I consider that the magnitude of the incident and the accounts involved in the hacking are signs that the attack went directly to the Twitter system and it is not data compromised by an external factor with access to the social network.

Larry Cermak, head of research at The Block, was initially inclined towards a vulnerability associated with the double factor of authentication. However, also ended up considering a total attack on Twitter. “No one is safe,” he wrote on the Cermak social network. He compiled all the tweets affected, posting:

Also the bitcoiner Jameson Lopp Manifested about the massive theft of bitcoin after the Twitter hack. In his view, the hack allowed the attackers to be in a kind of “God mode” and virtually take control of the platform.

In another messageLopp added: “not your database, not your tweets”, in reference to the bitcoiner slogan against centralization: “not your keys, not your bitcoins”.

Precisely, centralization is questioned among users of the platform following the event. Sarah Jamie Lewis, crypto specialist, assured In this regard, what happened with Twitter could basically happen with any application.

“There is nothing you, as a user, can do about it other than not using the app. Centralization, maximum vulnerability. ”

Sarah Jamie Lewis, crypto specialist.

Twitter responds and blocks messages with scam addresses

The attack began with the publication of messages from accounts in the cryptocurrency environment, inviting you to visit the website of an alleged “fund” for relief from the COVID-19 pandemic, called CryptoForHealth. On that site, a Bitcoin address appeared to which people had to deposit and then receive double.

Address hack scam Twitter
This was the first Bitcoin address that the scammers published on Twitter, you can see the total of scammed BTC that the account has. Source: mempool.space

The official account of the exchange house Binance, and that of its CEO, were among the first to publish the message. Then, accounts of personalities outside the cryptocurrency environment joined the wave.

Already when celebrities arrived, such as Obama, Kanye West or Elon Musk, the published message provided the address of Bitcoin directly. At that time, the website had been tagged by CloudFlare as a potential scam. But Twitter’s response took about three hours, when the theft already exceeded the equivalent of USD 100,000.

In a first message, the platform indicated to be aware of what was happening. Minutes later, alerted on his response to the attack: “You may not be able to tweet or reset your password as we review and address this incident.”

Finally, Twitter blocked the publication of messages with the direction Bitcoin involved in the scam. During the writing of this note, Twitter published a new message indicating that they would keep limited “the ability to post online, reset your password and some other functionality” while handling the situation of the attack.

The attackers began to launch a second direction, although this was also blocked from Twitter. This one, quickly. But in total, between both addresses, hackers received more than 13.41 BTC. The amount stolen is equivalent to more than USD 120,000, according to the reflected bitcoin price at CoinMarketCap at the time of writing this article.

address fraud hack Twitter
This was the second Bitcoin address they used to scam yesterday, July 15. Source: mempool.space

Finally, in a first report on what happened, Twitter alleged the case of social engineering. In her words, the attack was carried out “by people who successfully targeted some of our employees with access to our internal system and tools.”

This has led to another questioning. among the tweeters: Why might a Twitter employee have the power to manage another user’s account? What kind of powers or privileges does the company have over the data of its users?

What happens – or will happen now – with Bitcoin?

A reflection that has gained strength as a result of this incident revolves around the value of Bitcoin. Jameson Lopp noted that the attackers decided to use the power they gained on the platform to search for BTC: “[tenían un ‘modo Dios’ y] Their main choice was to trick you into separating you from your precious bitcoin. ”

The @WhalePanda account posted a thread with several elements that it found interesting about the attack. More than what hackers did, what they didn’t do.

According to his vision, the attack could have generated much more profit if the power obtained by hackers was used to manipulate the market instead of posting “an obvious scam that only a small percentage of people fall in love with.” Furthermore, it alleges, it is a long-standing scam mechanism.

Several bitcoiners see the event as a positive event for large-scale Bitcoin. Some, like Samson Mow, Blockstream CSO, even foresee a rise in price “soon”.

Others, like Lopp, simply look favorably on Bitcoin’s exposure to what happened. The world’s first cryptocurrency came to trends Twitter in the United States, showing the scope of the event outside the community of cryptocurrency enthusiasts.

But not everyone sees the event as necessarily positive. About this, Andreas Antonopoulos wrote simply: “I told them that ‘mainstream’ was a double-edged sword.”





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Governments’ weapon against Bitcoin



Before starting this article I want to apologize to bitcoiners readers because through This text could show an attack on the almighty, Alpha and Omega, omniscient, omnipresent Bitcoin, however, I ask you to try to think outside the box to what was raised.

With the above mentioned, I continue with an introductory idea that I think we should be quite clear about.

Governments are not friends with Bitcoin

Yes I know. It is a hard statement and difficult to digest, but it is logical.

Why would governments be friends with something that involves giving up their power?

Why would they want something to exist that prevents them from managing their monetary policy as they please?

As Kiyosaki (someone who is not a saint of my devotion) has well said, Bitcoin is the people’s money. But, to say money of the people does not imply that it is the money of the governments. Because after all my friends, the government is not the people.

With the exception of honorable exceptions such as those we have seen in Venezuela and the Caribbean islands or with Bulgaria’s funds in BTC, Bitcoin is designed to be an enemy to governments.

And the idea is not under discussion.

In fact, the idea was already discussed a long time ago in Bretton Woods. The resounding rejection Bancor went through, the British proposal that Keynes designed to propose a single international monetary unit, is a sign of the resistance that governments may have to the idea of ​​giving up “their” financial sovereignty.

When the leak emerged that Donald Trump ordered Steven Munchin to go against Bitcoin, everyone in the community laughed and thought it was a slapstick which the character usually shows off, when the reality is that this is a logical move by part of a government that holds the scepter and crown of the world economy. Or do you seriously believe that the United States intends to give up the hierarchy of the dollar?

I could focus on explaining the same with the case of the Euro with the European Union, the Yuan in China, the Ruble in Russia, the Rupee in India or the Yen in Japan, but they would all lead me to the same conclusion: Governments are not willing to lose “their financial sovereignty” to leave it in the hands of something they do not understand and cannot manage.

The utopia of governments storing Bitcoin as national reserves, just as if they were gold bars, is typical of the world of Mouse Pérez, Santa Claus and Cinderella. Does not exist.

Gold and its industry can be manipulated or affected by governments, while Bitcoin cannot.

Secret weapon

Having made clear, or so I pretend to believe, the idea that governments are not friends with Bitcoin, I am going to talk about what they could do against Bitcoin.

First of all, I must mention that, at least from my point of view, governments cannot directly affect Bitcoin.

The Bitcoin Blockchain with its code makes it somewhat impassable. The computing power dedicated to keeping the BTC network secure is higher than any existing supercomputer on the market. No existing quantum computer on the market today can break the SHA-256 elliptic curve digital signature algorithm behind Bitcoin. Bitcoin is Superman and in this story there is no Kryptonite.

However, This does not prevent Lex Luthor (governments) from trying to affect you indirectly by attacking your reputation.

After all, governments know that they cannot destroy Bitcoin, but, I think they also understand that they do not need to, at least directly. SThey just need to destroy people’s trust in him. An important part of the Bitcoin equation that is not entirely dependent on cryptocurrency.

As a decentralized currency, with no central authority or company to back it up, Bitcoin is kept on the shoulders of the people. On the confidence that we all have in our champion.

However, this trust is somewhat foreign to Bitcoin. Trust is not protected by SHA-256 or Elliptic Curves. There are no private keys to shield our trust.

This trust can be bombarded and attacked through narratives, something governments are adept at doing. The United States led the world to believe that an invasion of Iraq was necessary and the Russians have fooled people for years about the benefits of communism. Do you really think that they have a hard time putting together narratives that are convincing among the population?

A narrative in which Bitcoin comes out as the main currency that financed a terrorist attack on a kindergarten. The currency that economically keeps a dictatorial regime that sprays sarin gas on its population. The payment method used by North Korea to buy enriched uranium from Iran. They are samples of those that we call Narratives.

Stories that allow you to induce the masses to think that they are facing a criminal currency.

Narratives that give you moral authorization to enact laws that prohibit its use, close exchanges and imprison whoever uses it.

Rumors that spread among people to discourage its use making them see it as a source associated with evil.

Machiavelli already reviewed in his work “The Prince” justifying the use of ignoble means for necessary purposes, about a teaching by Virgil about Queen Dido: Res dura, et regni novitas me talia cogunt moliri, et late fines custode nuti. Translated into Spanish as: The grave moment and the novelty of the kingdom compel me to use such means and to defend my confines.

How would Bitcoin look at this? At the code level it would be intact. Blocks would continue to be generated every 10 minutes. Its emission cap would not be damaged and its halving would continue to be scheduled for 2024.

However, at the confidence level it would not be the same. The perception of the currency would be affected before the public.

And no friend Bitcoiner, as I mentioned earlier, think outside the box and don’t think like someone who is already inside the “rabbit hole”, Think like the flat population, the one that you intend to one day use Bitcoin in order to achieve worldwide adoption that will take us to $ 300,000 for 1 BTC. Do you think that if this scenario occurs they would trust Bitcoin?

And then, if we already glimpse a possible attack, What should we do? Should we sit back trusting in the superiority of BTC and wait for a “truth” bombardment, or will we take the necessary steps to shield the truth and maintain confidence in the soundness of the system? I think it is time to start and move forward in battle, because war has already been declared.

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A curious message among the noise of the hacks to Twitter


Recent Twitter account hacks have been a boom in the social network, with several hacked accounts such as Coinbase, Binance, Bill Gates, CoinDesk and even Twitter Support itself. All this makes it clear that the attack has been a well-coordinated and well-worked attack, with the aim of carrying out a large-scale scam that so far it has taken more than 100,000 dollars and has left several victims. Victims who have trusted verified profiles that were used illegally to promote this scam.

However, the attack that is still under investigation by Twitter and those affected, has brought with it another curious fact that has been recorded forever on the Bitcoin blockchain. We are talking about two transactions that carry a curious message between the noise of hacks on Twitter. The first transaction and second transaction they carry the same message recorded in the Bitcoin addresses, of the Vanity Address type to which a few satoshis have been sent.

https://lh3.googleusercontent.com/xoHllsUtJyE0dUPA8jywcTpDtdGOe_gKrdJHd-J-527pUc-esOociECTTHQ7JUlocMQ01bviae2ZAGHErv15SUKKwVgHpC729jH-Hp_qmyolZMXSowd3iYVJVipPOkclTgA8JrmT

https://lh4.googleusercontent.com/CXT1o-5iB2_mIFUNO2FaQamKvTvYgUZGMfjHAIVfvZ88i_x6S724K4CxdVQ8zTbFRA8PiewdZaSQmcLsoQMwnp_0ucL7Z0jt7Zv_Fin_3KDpg3ynju73d8wT7GLd7fMrzF5tqWC3

The message in question is clear and says the following:

“Just read all transactions output as text, you take risk when using Bitcoin for your Twitter game, Traceable Bitcoins, why not Monero”

What in Spanish can we translate it as:

“Just read all the transactions as text, this risks you when you use Bitcoin for your game on Twitter, bitcoins are traceable, why not use Monero?”

The message is certainly curious enough to pay close attention to it, but the most curious thing is the way it was sent, using clearly generated Bitcoin addresses containing the words for this message.

A curious way to send a clear message to hackers

For those who have been in the Bitcoin world for a long time, it will be easy to recognize these types of addresses, but for newcomers, we are talking about Vanity Address. Vanity addresses are a type of Bitcoin address that we can generate on demand using some special service or software for it. The purpose is very simple: create a Bitcoin address that has a pattern chosen by us as a form of customization.

Vanity addresses can be generated free of charge in some services up to a certain level, but at one point, these addresses have a cost. The reason? Generating these addresses requires enormous computational power and lengthy brute force work to generate both the address and the associated public and private keys. Because after all, a Bitcoin address without a public and private key is a key with no use.

Of course, you can download the software and generate the key with your own computing power, but if the direction to generate is very complex, that could take you from a few days to millions of years if you don’t have the necessary computing power to create them.

However, The strange thing is that this message sent to hackers has used several Vanity addresses ranging from 11 custom characters (1JustReadALL1111111111111114ptkoK) up to 25 custom characters (1YouTakeRiskWhenUseBitcoin11cGozM). A situation that quickly opens the question Do those who created these Vanity Addresses have the necessary computing power to generate these personalized keys in a matter of hours? If so, how does this affect the security of Bitcoin and its users?

Cheating generated addresses

The answer to the first question is that this may doubtfully be true. Bitcoin addresses are generated using a very secure cryptographic process that could doubtfully have been broken. We talk that the genesis of every Bitcoin address is an ECDSA private key that then generates a public key.

This public key goes through an encryption process in which the RIPEMD-160 and SHA-256 hashes are used, in order to reduce its size and prevent the public key from being seen directly. Throughout the process, highly proven cryptography is used with widely recognized security, and it is what has kept the Bitcoin balances of its users safe for more than 10 years.

But this generation process can be avoided, to generate valid Bitcoin addresses, to which we can send money, but which we can never use because this “trap” does not generate the public key or the ECDSA private key of that address. To test this point we will use the following string as an example “1MyVanityAddressxxxxxxxxxxxxxxxxx”. As you can see this chain is a custom chain, and we will apply the process to make it a valid Bitcoin address.

First, we will use a Base58 decoder which will give us the following result: “0003F77A201F20EDFABA39DCB6FB20D7DEDAC6D5A9F521DC11”. From this string I will put aside the last eight characters “0003F77A201F20EDFABA39DCB6FB20D7DEDAC6D5A9” and on this result I will apply a SHA-256 binary type. The result obtained is this SHA-256 hash, “ceeb665e3f12dfac7ab540c920558c81e2a1adcab04ffd28fd378f47f4d9895f”. On this same hash I apply the same SHA-256 again and I get “F197f8f57097c8017415ddee702f675ba743f093bfbbbd155e88ea2d43577c0e”

Continuing with the process, the last hash took the first eight characters “f197f8f5”, these will be my checksum. These characters will be added to the end of this string “0003F77A201F20EDFABA39DCB6FB20D7DEDAC6D5A9” and I will have “0003F77A201F20EDFABA39DCB6FB20D7DEDAC6D5A9F197F8F5”. Finally, I can only take this string and encode it using Base58, which will result in my valid Bitcoin address, the address “1MyVanityAddressxxxxxxxxxxxxsigrx”. As you can see a vanity address generated by hand, of which we have no public or private key, but which is equally valid for the network.

https://lh4.googleusercontent.com/H5N_09OJUI-s2DgmA7CY9HR2-bVUnrEJEJYR7nhddd9S0V29y_tDiQp58xWnhpfx7_xHDoN1pFsNAQETcJQ6ZuN9FEkZ4Mu5-VqyJw_UpBBN9scNrdZlqzDTEV5UMuKE3kwKmf_X

This is the trap that people who have sent this curious message have used through these two Bitcoin transactions. This also means that these addresses can only receive money, but it can never be withdrawn, since, without the private keys, managing the funds within those addresses is impossible.

The answer to the second question is that this has no impact on Bitcoin’s security. Generating addresses in this way does not give us access at any time to the ECDSA keys that gave rise to it, so we can rest assured, Bitcoin has not been hacked, nor is its security currently in danger.

The worst case, however, is that the vanity addresses of those transactions come to mobilize that money, in which case, we could say that Bitcoin’s security has been fatally wounded. But that is something very unlikely to happen,

Of what there is no doubt is; than Those who send the message do so with the knowledge that this Twitter hack and subsequent scams have left an impossible trail to erase. Every transaction in Bitcoin is public and is kept unalterable, and that is an important point to find the identity of who or who have carried out this attack. The fact will surely be investigated by the community and will get to the bottom of the matter, meanwhile the Bitcoin community has been left with a message to think about. Is privacy and anonymity sufficiently protected in Bitcoin?

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Bitcoin: the Twitter hack does not shake BTC


Not even the Twitter hack that took place yesterday affected the sleepiness of Bitcoin who saw the day end with one swing between open and close levels of just over $ 50.

As in these cases, the scam that has perpetrated seems to have Bitcoin as a motive, while instead it is a real hole in Twitter security.

To date, at the time of writing, the hacking portfolio that is collecting the amounts sent records a total of 13 Bitcoins for a higher value to 110 thousand dollars.

The hack against Twitter looks like a demonstration attack more than serious for the intention of the theft. Previously, we have witnessed even more serious hacker attacks that have involved not only the Bitcoin community and cryptocurrencies.

Initially yesterday’s first alarms involved large exchange companies or influencers and direct participants in the crypto world, including Vitalik Buterin, Justin Sun, Charlie Lee, Changpeng Zhao. In the minutes that followed, the attack extended to big political figures, government and fintech, such as Apple and Uber.

The biggest losses occurred in the first two hours of this serious attack, in particular for a transfer of the equivalent of $ 42,000 from a single Bitcoin address.

coin360 2020716
Source: COIN360.com

But the news does not particularly weigh on the cryptocurrency sector. 70% are falling, but this is part of the ordinary.

Scrolling through the list of the top 20, only a handful of increases emerge. Keep getting noticed chainlink (LINK) which, although with a more contained leap in recent days, consolidates its position among the top 10 and today reaches 8th position, the highest level recorded since its listing in the autumn of 2017.

LINK 20200716

Chainlink yesterday, after breaking the absolute historical record recorded the day before, managed to jump even higher touching the 9 dollars, level where hedges prevailed which do not affect the upward trend, which sees Chainlink’s prices gaining more than 500% from the lows of mid-March. A value that has multiplied 5 times in 4 months.

Chainlink is among the best hikes in the past week. From last Thursday’s levels, it has registered a gain of over 30%, the best rise in the top 30.

ADA 20200716

Cardano (ADA) consolidates the 7th position in the standings, even if it remains the head to head for the conquest of the 6th position that also yesterday managed to take in some sections of the day. Between Cardano and BSV there is a difference of about 30 million dollars, so oscillations of a few cents make the sixth position exchange between these two.

Cardano tries to consolidate the quotations above 12 cents, and now he aims to attack the 14 cents, the level reached last July 8, the top of the last two years, a quote that has not been registered since August 2018.

Other positive signs are of Crypto.com (CRO), + 1%, like Monero (XMR), cited in messages covered with some transfers of a few cents that occurred during the hack, an ironic transaction that seems to mock and alert the authors of this hack.

The purpose was evidently to send the message that it cites as as text within the hashing:

“You risk when you use bitcoin to play on Twitter. Bitcoin is traceable, why not use Monero ”.

This is the message of 7 transactions that started from a single wallet, for a total of 50 cents with a total of 11 dollars in commission.

Twitter Hack 20200716

In each transaction is written what would seem to be more an anagram game that highlights how risky it is to use Bitcoin to launch this type of scam as Bitcoin is traceable. As a sign of challenge, the question is asked “why not use Monero?”.

Going back to the top 20 list, another noteworthy hike is Tezos (XTZ), + 3%, like the token Leo (LEO), are the two that rise most of all in this first part of the ranking.

Scrolling through the top 100 Swissborg (CHSB) ed Elrond (ERD) rise by more than 10%.

On the opposite side, among the most obvious discounts, there are Waves (WAVES) Zilliqa (ZIL), Matic (MATIC), which drop by more than 10%.

The first 7 are all in red with low discounts: Bitcoin yields 0.5%. They suffer more Ethereum -2.5%, e Ripple -3%.

The DeFi also today records a record gain of a few million higher than yesterday’s levels with the TVL at 2,530 billion.

Resumes altitude Maker which goes as a total of token collateralized to $ 625 million. Compound remains at 693, a difference that is increasingly narrowing. Compound and Maker hold just under 60% of total dominance.

The market cap fluctuates around $ 270 billion.

Bitcoin yesterday recorded the midweek day with the lowest trading volume, just over $ 1 billion, since the end of January, when BTC was just below current levels.

Today, daily volatility on a monthly basis drops below 1.4%, lower levels since December 2016 and which has not been seen for about 4 years.

BTC 20200716
Bitcoin chart by Tradingview

Bitcoin Price (BTC)

With low volumes and low volatility, Bitcoin does not experience substantial changes. Prices remain in the range from early July. For a few minutes today prices have pushedi under $ 9,100, threshold then recovered.

Trading volumes can trigger oscillations of hundreds of dollars, but with low volumes the resistance at 9.450 and then at 9.700 dollars remains valid, these are the first levels that could shake upwards.

On the downside, the $ 9,000 area hold remains crucial, which corresponds to the double minimum last seen on June 27 and July 5.

Unlike the volumes, the use of the word Bitcoin on Twitter rises, with the hashtag #Bitcoin among the trend topics of the day, followed by #twitterhacked.

ETH 20200716
Ethereum chart by Tradingview

Ethereum Price (ETH)

Today’s drop of -2.5% brings Ethereum quotes back to test the 230 dollars, last seen on July 6. ETH fails the attempt to break the 245 touched in the last week, highlighting how the lack of new purchases has missed the break of the 245-250 dollars, levels that are central to the coverage of professional operators who see in this target the first wall of break down where the call covers are located.

The options continue to give clear signs of wanting to cover any reductions that for Ethereum are positioned at 225 and then at $ 215, a fateful level, which has seen more and more hedges since the end of June, when area 215 was a near-level area with the downward movement of 27 June.





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We could expect a rally in the price of Bitcoin if a second wave of Coronavirus breaks



COVID-19 has become a defining moment in the course of our society, but the impact of the pandemic can be seen through its effects on the economy and society in general. From the perspective of a Bitcoin (BTC) investor, there are many things to consider.

Coronavirus appearance patterns determine how the infection spreads and they put society on a particular course into the future. The impact of the new coronavirus on consumer society has been tremendous. The effect has been seen above all as the closure of workplaces, which has resulted in people working from home, being fired or, in some cases, being laid off.

Unemployment figures have set records in western countries, especially in the U.S. The path to economic recovery is still unknown. The current situation seems to indicate that companies need new types of fundraising to fully recover or to restructure.

The gap between infection cases and deaths is about Two or three weeks: This means that when the epidemic reappears, according to the data obtained from the first wave, this happens predictably, in the risk groups and at the regional level.

Blockchain technology could help deliver COVID-19 vaccines

Exposure to Blockchain-based assets is concentrates in young male professionals in their 30s. If we look at the new participants in the Blockchain asset classes among the consumer segments, we can see that the largest number of new users has come geographically from countries where the local currency is experiencing high inflation, concentrating approximately on Africa and Latin America. Socioeconomically, they are middle-class professionals. While most are Bitcoin maximalists, there has been increasing interest in the altcoin markets.

Recently, a shopping spree fueled by videos shared on the social media app TikTok caused a significant price increase in the value of Dogecoin (DOGE). The buyers were almost exclusively teenagers and young adults who are currently cryptocurrency holders. Although Dogecoin has long been known as an asset whose value is entirely based on its virality, the recent phenomenon suggests that there are many new entrants to the broader cryptocurrency market. It should be noted that this Dogecoin rise only took hours to complete, compared to the other eight times that the coin had gained significant value. This indicates an impulsive movement.

Retail investors in risk groups typically do not invest in assets based on Bitcoin or Blockchain. The wealth held by those over 70 is usually in real estate, bonds and indices. The investors themselves, who are the most likely to contract and die from the novel coronavirus, are the most established in our society. Meanwhile, statistics show that deaths are largely concentrated among working-class individuals, ethnic minorities, and those without access to quality health care. Residents of care homes have been particularly vulnerable.

This is significant because statistics indicate that most victims of the new coronavirus are unlikely to have significant wealth in traditional or Blockchain-based assets. Thus, The impact of the coronavirus on the crypto and blockchain-based markets can be quite insignificant, while in traditional markets the outbreak is likely to unlock the assets that are often in the hands of victims. Among the elderly members of the working class, most of the wealth was maintains in residential real estate and pension funds.

This shows that the impact of the coronavirus can do Make cheap real estate even cheaper, particularly in the countryside, even though people are temporarily seeking relocation there.

The effect on Bitcoin in this regard would be practically nil.

Its influence on institutional money has been twofold. On the one hand, the institutions have enjoyed unprecedented support from the government through the rescue of their debt through the purchase of stock-backed bonds, and on the other hand, Funds like Grayscale Bitcoin Trust have seen their volumes increase.

Institutions are traditionally considered to be swing traders; They bet on long-term market movements. Institutions’ interest in cryptocurrencies and Blockchain-based assets as an asset class has been growing constantly, and the number of investment instruments has increased in the last five years. Institutions are typically hedged with Blockchain-based cryptocurrencies and assets with a narrow focus on a handful of tokens and sophisticated trading techniques, such as leveraged trading and options.

On the technical front, Institutions have implemented Blockchain technology to support their existing services.

This means that institutions see Blockchain as a tool to facilitate lag and cryptocurrencies as a way to cover their portfolios outside of traditional markets. Arguably, this makes the influence of institutions with respect to Blockchain-based assets a factor. stabilizer instead of a market engine.

Bitcoin’s fundamentals have shown signs of transition to the next growth cycle in the coming years. Halving has limited supply and placed assets on a par with the major fiat currencies for inflation, at around 2% annually.

The stock-to-flow ratio is an indicator that shows Bitcoin’s overall historical trends. Currently, the indicator suggests an imminent long-term increase in value. Bitcoin has increased in value sometime after halving due to increased pressure caused by declining supply.

Cycle lengthening is an assumption based on the halving code feature of the Bitcoin supply. With each cycle, halving takes longer to occur, prompting a longer cycle of onset in asset value. The data supports this assumption, as each cycle so far has taken longer to realize its potential.

Startups in the crypto industry have exponentially increased both in number and in total initial capital raised throughout market cycles. The 2017 ICO bubble has proven to be an impulsive move rather than an isolated event. According to ICORating, there are still a considerable number of projects that are raising funds through ICOs. The issue cited during the 2017 market bubble around due diligence has led to the acquisition of ICOs by trusted third parties. Increased government regulation has strengthened the foundations of the average ICO, fueling interest especially among expansion companies and Startups whose product ideas benefit from a Blockchain-based asset, either as a regulated value or as a utility for the consumer. Consequently, another larger ICO bubble could start to grow in the next market cycle.

Organic consumer demand bottomed out during the first wave of COVID-19 in Western countries, causing a significant drop in the price of Bitcoin. This drop was caused by the initial panic: sales hit the 200-week moving average and fell below it, followed by a rapid recovery in v shape. The data suggests that while institutions were selling, retail was buying the fall.

According to modern portfolio theory, rapid V-shaped recoveries indicate solid asset fundamentals. It’s safe to suggest that the coronavirus at least acted as an event confirming the general uptrend.

The next bull market is likely to be fueled by consumer demand. Although retail investors are restructuring their personal portfolios in the world outside of cryptocurrencies, they are likely to become more interested in the asset class over time. The motivation to enter the market is dominated by hedging against inflation and exposure to assets that can be used across national borders.

Alex Althausen, the CEO of StormGain – a cryptocurrency trading and exchange platform – said:

“Today, we see the correlation of Bitcoin’s price with the 66% S&P 500, but we have to consider that it is the bull market. If, or when, the price of traditional assets like stocks falls due to a second wave of COVID-19, investors will more actively use protection assets such as gold and Bitcoin. “

Bitcoin is considered a safe haven asset, in particular because it is easier for consumers to access than traditional financial instruments. There are no minimum investment amounts, there are no rules on accredited investors, and the increased availability of exchange services makes the asset class attractive to the average consumer.

Smart money is invested right from the start in promising projects, while dumb money is often hooked on an established trend near the top. Therefore, the distinction can be made by the amount of work required to do market research, as well as by exposure to creators. Smart money represents the early adopters. Recently, we have seen an explosion in decentralized finance, non-expendable tokens, and more traditional security and utility tokens. The main traditional brands, such as European football clubs, They have entered in the market through their own tokens and platforms.

The broader cryptocurrency market is poised for an explosion of assets in the Cambrian and a market comparable to the creation of the Internet itself. Since COVID-19 acts as a catalyst in dismantling old institutions and traditional financial systems, it will pave the way for cryptocurrencies and tokens to take their place.

Bitcoin has laid the foundation for the future of finance. As Binance CEO Changpeng Zhao stated:

“The pandemic has changed the world as we know it; it will never be the same again. And in this new world, we believe that cryptocurrencies will play an increasingly important role.”

The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Tuomas Santakallio He is a cryptocurrency enthusiast, Blockchain developer, and serial startup entrepreneur with experience in international development and grassroots innovation. Tuomas is also a co-organizer of the Smart Technology Summit on Blockchain protocols, tokenization, artificial intelligence, smart cities, drones, smart energy, legal and biomimic technology.



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