The Crypto Market Just Hit a Low for 2018

The Crypto Market Just Hit a Low for 2018

The total market capitalization for all cryptocurrencies just fell to its lowest point in 2018. The developments come after the US Securities and Exchange Commission (SEC) delayed a decision on a proposed bitcoin exchange-traded fund (ETF). The news triggered a market reaction, ultimately sending the total value of all cryptocurrencies down to $227.8 billion on Wednesday – the lowest level since November 2017 – according to data from CoinMarketCap.  The drop to nine-month lows marks a 10.7 percent depreciation on a 24-hour basis. As of press time, the market capitalization had risen back slightly to $228.6 billion. Although the ETF decision is solely in regards to bitcoin, many alternative cryptocurrencies are printing worse losses than the world’s largest cryptocurrency by market cap, signaling worsening risk sentiment in the market. The rise in the bitcoin dominance rate – an indicator that tracks the percent of the total crypto market capitalization contributed by the leading cryptocurrency – to an eight-month high of 48.6 percent also suggests the investors are venturing out of alternative cryptocurrencies and into bitcoin, and then possibly on to fiat currency. The falling spread or difference between the total market capitalization of all cryptocurrencies except bitcoin and BTC’s market capitalization is also signaling reduced demand for high-risk alternative cryptocurrencies. At press time, the total market capitalization of all cryptocurrencies excluding bitcoin is just over $118 billion – an 8.5 month low – whereas the total market cap of bitcoin is topping $111 billion, a figure last seen less than a month ago and above its annual low of $99,915,112,929, according to CoinMarketCap. Meanwhile, the BTC dominance rate is hovering around 48.9 percent and could rise to 50 percent if the risk aversion worsens, boosting demand for well-established cryptocurrencies like BTC. Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing. Image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency…

Swiss Banks Are Onboarding Crypto Clients and Assets

Swiss Banks Are Onboarding Crypto Clients and Assets

News Another Swiss private bank has announced in a statement that it’s open to on-board cryptocurrencies. Maerki Baumann private bank in Zurich is open to accepting assets that were generated with cryptocurrencies, “under the condition that strict regulatory and legal requirements are fully complied with,” Managing Director Stephan Zwahlen told news.Bitcoin.com. Also read: Many Swiss Bankers and Financial Regulators Quit to Join the Crypto Space “Switzerland Knows How to Protect Assets” Assets raised from cryptocurrency transactions are usually rejected by most Swiss banks, but there are a few exceptions. Maerki Baumann has reportedly followed Falcon and officially accepted handling such assets, but it does not offer asset management solutions in cryptocurrencies nor accounts in crypto, the Managing Director of the bank told news.Bitcoin.com. Funds raised from speculative crypto transactions, payments for services rendered, or from mining successes are increasingly growing, together with the popularity of cryptocurrencies. But these assets reportedly often meet rejection from Swiss banks.  Vontobel, another Swiss private bank, together with Falcon, stands among the lenders that are agreeing to handle cryptocurrency-based investments on behalf of their clients. The Swiss Contradiction One of the contradictions about Switzerland which is aiming to become a “crypto nation” is that despite having hundreds of the most famous crypto companies worldwide based in Zug, hardly any of them have a Swiss bank account. The main reasons for that is the fear of black money that has tainted some of the major Swiss banks throughout history, Marc Bernegger, a Swiss Fintech and crypto entrepreneur, told news.Bitcoin.com in an interview in Zurich. Bernegger has been a fintech entrepreneur for close to 20 years, and said he read Satoshi’s whitepaper in 2012. He then immediately felt that Bitcoin had a lot of potential. “I understood from day one the impact that the technology was going to have. Back in the old days, hardly anybody in the traditional financial services industry was even hearing about Bitcoin,” he said.  Marc Bernegger, Board Member at Crypto Finance AG “Nowadays, when it comes to cryptocurrencies, there is an understanding of financial services that reminds [me of] the old banking privacy,” Bernegger said. “It isn’t about replicating that again, but I think Switzerland has a strong reputation and knowledge about protecting assets.” However, the Swiss entrepreneur noted that one…

Judge Advances Securities Class Action Against Tezos Token Creators

Judge Advances Securities Class Action Against Tezos Token Creators

The husband and wife duo behind blockchain project Tezos have faced their latest setback in an ongoing securities class action against their $232 million Initial Coin Offering (ICO), according to a docket report published August 7. U.S. District Judge Richard Seeborg of the Northern District of California yesterday refused to dismiss plaintiff Arman Anvari’s suit against the defendants, which consolidates various prior class action suits filed by other Tezos contributors against Arthur and Kathleen Brietman, their firm Dynamic Ledger Solutions (DLS), and the Tezos Foundation. The controversial case surrounds what Tezos’ creators claim was an online fundraiser, although the docket report chooses to adopt the term ICO “in deference to the language of the complaint,” while noting that the Breitmans were “careful to avoid characterizing the plan” as such. The defendants are thus accused of violating U.S. Securities and Exchange Commission (SEC) regulations through the sale of unregistered securities in the U.S. Judge Richard Seeborg dismissed the Breitmans’ motion against Anvari’s complaint, in which the couple had argued that the ICO did not fall under the U.S. SEC’s jurisdiction because it was administered by the Swiss-based Tezos Foundation. The judge considered that the involvement of DLS “in establishing and aiding the Tezos Foundation rendered the two entities deeply intertwined, if not functionally interchangeable, throughout the ICO process”: “Try as the Foundation might to argue that all critical aspects of the sale occurred outside of the United States, the realities of the transaction (at least as alleged by Anvari) belie this conclusion.” Anvari, a former Perkins Coie associate in Chicago, invested 250 ether, a cryptocurrency part of the Ethereum (ETH) system, in Tezos’ ICO, according to the docket report. The judge notes that Anvari’s transaction was hosted on an Arizona-based server and run by Arthur Breitman in California, adding that Anvari “presumably” learned about the ICO from “marketing that almost exclusively targeted [US] residents,” and his ether contribution “was validated by a network of global “nodes” clustered more densely in the [US] than in any other country.” Two further defendants are named in the court filing. The first is venture capitalist Tim Draper, who publicly backed the project and allegedly purchased a $500,000, ten percent stake in DLS in May 2017, before separately joining a $1…

PR: SoPay App Released, Offering Fast Transactions and SoPay’s Assets Mining (SAM)

PR: SoPay App Released, Offering Fast Transactions and SoPay’s Assets Mining (SAM)

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. SoPay, the blockchain-based payment platform with a disruptive approach to the money market, today announced the achievement of another milestone in its roadmap; the release of the SoPay app. The startup believes that the app is the missing puzzle of mass adoption of the cryptocurrencies. This development comes quickly in the heels of another milestone that saw SoPay land in three significant exchanges in mid-July 2018. The app became ready for download at 2100 (+8 GMT) from August 6, 2018. Check the official download page. The official version of the app improves the operating experience of payment products that are based on the blockchain. User-Friendly Interface and True UseThe SoPay app is clean and concise and allows users to access all the services by just registering with their mobile numbers and a 6-digit password. Also, it is easy to recharge fellow users’ accounts. All a user need is the recipient user’s mobile phone. This new app eliminates the need for elaborate recharge processes such as copying complicated addresses that is the norm in blockchain payment platforms. Most importantly, use of the app attracts zero handling fee. Users experience the same ease when withdrawing cash. Also, the platform offers a subsidized rate that is considerably lower compared to other peer platforms. SoPay wants to support transactions of different digital assets, enable direct transactions involving digital assets on one side, and goods or services from traditional enterprise on the other side, and assist cross-platform transactions. Innovative Mining ModelAside from deposit, locking assets and making payments, SoPay users can create an additional revenue stream by inviting their friends to mine on the platform. The SoPay platform’s deposit lock mining supports both SOP tokens as well as ETH. Technically, SoPay’s mining model, complete with its invite feature, isn’t a promotion. Instead, it is a strategy that gives users a chance to survive effects of the bear market by generating passive income. For instance, a user that has the app running every day doing payments,…

Crypto Tax and Accounting Software Libra Raises $15M in Series B Funding

Crypto Tax and Accounting Software Libra Raises $15M in Series B Funding

Services Traditional venture capital investors seem to think that the field of crypto reporting apps is appealing. Cryptocurrency tax and accounting software development startup Libra has raised an extra $15 million in its Series B funding round. Also Read: Opera Browser Opens Its Built-in Cryptocurrency Wallet to Desktop Users $24.8 Million in Funding for Crypto Tax App Libra, a provider of middle and back office technology and data services for the crypto-assets ecosystem, has announced the closure of a $15 million Series B round. The funding was led by its previous lead investor, described as a “prominent, multi-billion dollar European family office,” with continued participation from Series A investors, including Liberty City Ventures. This round brings Libra’s total funding to $24.8 million. The company plans to use its new funding to continue building out its core product, the Libra Crypto Office platform, as well as support the release of new products and services later this year. It says that the capital raise not only strengthens the ability for further product growth but also the ongoing expansion into new customer segments such as miners, lenders and custodians. The venture originally started its operations back in 2014, by developing tax apps for average cryptocurrency day traders. It is now focused on transforming crypto transactional data into operational and audit-ready financial information for institutions. Helping Crypto Hedge Funds Meet Reporting Standards “Libra’s mission is to provide a system of record that allows institutions with crypto transactions to meet the reporting requirements of managers, investors, auditors and regulators,” said Jake Benson, Founder and CEO of Libra. “We are very excited our investors have affirmed their continued support for Libra with their contribution to our Series B raise. Their commitment allows us to expand our customer offerings, grow our team and increase our customer base.” Indeed, investors seem to think the field of crypto reporting is worthwhile. Back in November 2017, Libra raised $7.8 million in its Series A funding round, adding to their previously raised $2 million seed round from firms like Fenbushi Capital. Investors who participated in the A funding round included Liberty City Ventures, Boost VC, and early Facebook investor Lee Linden. Another competitor in the space, crypto tax reporting software developer Node40, was acquired for $8…

Markets Update: Crypto-Prices Slide After SEC Announcement

Markets Update: Crypto-Prices Slide After SEC Announcement

Market Updates Cryptocurrencies are dropping in value once again on Wednesday, August 8 as most of the top digital assets are down between 9 to 18 percent over the last 24 hours. Prices started dropping yesterday after the U.S. Securities and Exchange Commission (SEC) extended the Cboe exchange-traded fund decision. Immediately after the announcement, bitcoin core (BTC) values shaved off $400 in an hour and the currency has lost another $300 in spot value today. Also read: CFTC-Regulated Ledgerx Launches Interest-Bearing BTC Savings Platform After the SEC Announcement Cryptocurrency Prices Slide Significantly   Digital currency values are hurting today as the entire cryptocurrency market capitalization has dropped since our last markets update from $250B to $231B on August 8. Despite the drop in value, trade volumes for all 1600+ coins has increased to $15B over the last day. A few days ago, cryptocurrencies saw the first dip before the SEC announcement, which took place after the Intercontinental Exchange (ICE) deal was revealed. However, after the quick dip, BTC/USD prices moved back up to the $7,140 region for a short period of time. The next two significant drops in value occurred after the SEC revealed delaying the ETF decision leading to today’s BTC/USD low of $6,391 per coin. BTC/USD prices over the last 48 hours on Bitcoinwisdom (15M-chart). Bitcoin Core (BTC) Market Action Bitcoin core (BTC) prices at the moment are around $6481 per BTC and the cryptocurrency’s market valuation today is $111B. Daily trade volume is decent but nothing spectacular at $5B USD in BTC traded over the last 24 hours. According to Satoshi Pulse statistics, the exchanges swapping the most bitcoin core this Wednesday include Bitflyer FX, Binance, Bitfinex, Okex, and Coinbene. The top currency traded with BTC currently is tether (USDT) which captures 54.2 percent of trades. This is followed by USD (24%), JPY (11.3%), EUR (3.9%), and KRW (2.6%). BTC is seeing a daily loss of around 8 percent today but the coin’s market dominance among all 1600+ currencies is 49 percent. BTC/USD Technical Indicators Looking at the 4-hour BTC/USD chart on Bitstamp and Coinbase shows bears have a tight grip over markets right now. The chart’s two moving averages (MA) has the 100MA above the longer-term 200MA trendline which means things will…

South Korea: Police Raid Firm Whose Alleged Crypto Scam Promised Investors Shipwreck Gold

South Korea: Police Raid Firm Whose Alleged Crypto Scam Promised Investors Shipwreck Gold

South Korean police have raided the office of a local firm whose alleged crypto scam promised investors the spoils of a sunken Russian warship, The Korea Herald reported August 7. The Seoul Metropolitan Police Agency reportedly sent 27 investigators from its white collar unit to to collect evidence from the premises of Shinil Group in Yeouido, western Seoul, and seven other locations on Tuesday. In mid-July, Shinil had released submarine footage of what it claimed was the wreckage of the Dmitrii Donskoi, an armored Russian cruiser that sank in 1905 in the midst of the Russo-Japanese war, alleging it had been found beneath the waters off Ulleung Island, east of the Korean peninsula, The Korea Herald writes. Meanwhile, Shinil’s Singapore-based affiliate is said to have enticed investors to purchase the firm’s own cryptocurrency, Shinil Gold Coin, based on the rumored value of the shipwreck. The company allegedly exploited circulating claims that the ship had gone down with 200 tons of gold worth 150 trillion won (around $134 billion). At a subsequent press conference, Shinil admitted the reports were unverified, adjusting the figure to 10 trillion won (around $9 billion). At the same time, the firm is alleged to have submitted an internal document to the maritime ministry for excavation approval that estimated the spoils at just 1.2 billion won (around $1 million), The Korea Herald writes. The firm allegedly further promised investors that the value of the Shinil Gold Coin would skyrocket from its current 200 to 10,000 won (around $0.18 to around $9) by the end of September. According to a local news report August 1, Shinil Gold Coin has raised 60 billion won (around $54 million) in investments from around 100,000 investors since its launch. Shinil CEO Choi Yong-seok been banned from leaving the country as the investigation continues. As Cointelegraph previously reported, authorities are also pursuing the head of the firm’s Singapore-based affiliate, Yu Ji-beom, who allegedly created a crypto exchange dubbed Donskoi International and spread posts about the shipwreck on social media. According to his acquaintances, Yu has previously been convicted of real estate fraud and has fled to Vietnam to elude the investigation.

Bitcoin Loses $7,000 Support After ETF Delay, Altcoins Suffer Large Losses

Bitcoin Loses $7,000 Support After ETF Delay, Altcoins Suffer Large Losses

Bitcoin (BTC) prices broke below the $7,000 support level late August 7 to hit lows on Wednesday, August 8 not seen since mid-July, as 99 out of the 100 coins on CoinMarketCap see red. Market visualization from Coin360 At press time, BTC was trading around $6,499, down around 8.5 percent on the day and capping a turbulent three weeks in which the largest cryptocurrency gained and lost up to 20 percent. Bitcoin’s weekly price chart. Source: Cointelegraph Bitcoin Price Index Tuesday’s move below $7,000 means the coin has almost come full circle since it rapidly gained over $1,000 over a two-day period ending on July 17. While commentators were unclear as to the motive behind the sudden upwards move, Bitcoin prices continued rising throughout the last month, reaching multi-week highs of around $8,450 two weeks later. In August, despite news of a regulated digital assets platform from Intercontinental Exchange and moves by Goldman Sachs to plan a crypto custody offering, markets began deteriorating, with Bitcoin losing around 15 percent over the past seven days. The latest lows came hours after U.S. regulators announced they had extended a deadline for approving a Bitcoin exchange-traded fund (ETF) proposal from SolidX and VanEck. This, sources suggest, triggered a more precipitous price drop, while others such as ex-Morgan Stanley senior executive Caitlin Long argued the increasing adoption of Bitcoin-based products was leading to price suppression, tweeting on August 6, “We have entered the era of fractional-reserve bitcoin.” Altcoins have also suffered high losses this week. Ethereum (ETH), having failed to match Bitcoin’s July rise, nonetheless fell harder, sustaining around 10 percent losses on the day as of press time and monthly losses around 35 percent. ETH is trading around $3,666 at press time, matching 2018 lows seen in early April. Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index Of the top ten coins listed on CoinMarketCap, IOTA (MIOTA) and EOS have seen the biggest losses, both down over 17 percent over a 24 hour period to press time, and trading at $0.65 and $5.90 respectively. Ripple (XRP) is also down around 16.3 percent on the day, trading at around $0.34 by press time. Total market cap is now at around $229 million by press time, a number last…

Blockchain for Music Startup Raises $5.5. Million in New Funding

Blockchain for Music Startup Raises $5.5. Million in New Funding

Decentralized music-sharing protocol Audius has raised $5.5 million in a Series A funding round led by General Catalyst and Lightspeed Capital the firm announced Wednesday. The project seeks to use a blockchain platform to help artists control the music they share, according to a press release. While a release date is not yet clear, the musician-owned platform would allow artists to publish their work and interact with fans, rather as platforms like SoundCloud operate today. However, Audius would provide artists with a greater degree of control over their intellectual property than existing systems do today, the release claims. The startup boasts advisers including BitTorrent chief architect Greg Hazel, Augur co-founder Jeremy Gardner and musician 3LAU, among others. 3LAU, who is notably headlining what’s been dubbed a blockchain music festival later this year, said in a statement that it is important for artists to be a part of running their content distributors. He said: “Artists need decentralized models for music sharing, and a stake in the platforms they contribute content to. Blockchain allows Audius to do this with tokens and decentralized voting-based governance so artists have a say in how the platform evolves. It’s a very elegant model and one which, as an artist, I find immensely attractive.” The platform was conceived by musician Ranidu Lankage and co-founders Roneil Rumber and Forrest Browning, according to the release. Also participating in the investment round were Kleiner Perkins, 122West, Ascolta Ventures and Pantera Capital. Headphones and keyboard image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

ShapeShift Acquires Tool That Quickly Swaps Bitcoin for Other Cryptos

ShapeShift Acquires Tool That Quickly Swaps Bitcoin for Other Cryptos

ShapeShift has acquired a startup that developed a tool for exchanging cryptocurrencies more efficiently. The company said Wednesday that it acquired the Texas-based Bitfract after it made the tool – allowing for the exchange of bitcoin for “dozens of digital assets in a single transaction” using the company’s API. The idea is that the tool makes it easier for crypto-buyers to switch up their portfolio without having to execute numerous transactions. “This demonstrated a great alignment of strategy and thinking, and their execution was so exceptional that we wanted to bring their talented team and technology on board,” CEO Erik Voorhees said in a statement. The tool works by letting investors choose what percentage of their holdings should be in a particular asset, add the destination wallet addresses and send bitcoin in a single mass transaction. ShapeShift intends to continue operating Bitfract’s tool in its present form “as a demonstration of the power of ShapeShift’s open API.” However, the exchange will also integrate the platform’s mechanism into its own platform, creating a native “multiple output transactions” function. “We believe in a decentralized future where individuals freely control their digital wealth, and our team is honored to work alongside Erik and everyone at ShapeShift to make this a reality,” Bitfract co-founder and CEO Willy Ogorzaly said of the acquisition. The move comes just less than a year after ShapeShift announced the acquisition of KeepKey, a bitcoin hardware wallet startup. ShapeShift raised a $10.4 million Series A funding round in March 2017. ShapeShift image via Piotr Swat / Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.