Token Exchange to Enable Trading of Nasdaq-Listed Companies

Token Exchange to Enable Trading of Nasdaq-Listed Companies

A Nasdaq-powered crypto startup plans to let its clients indirectly purchase shares of major firms through a token-based platform. Estonia-based DX.Exchange announced Thursday that it would launch its trading platform on Jan. 7, allowing its clients to purchase crypto tokens representing shares in different tech firms listed on the Nasdaq exchange. Customers will be able to use select cryptocurrencies, as well as fiat currencies to purchase the tokens. The company will use Nasdaq’s matching engine to facilitate the trading of digital securities, as well as protect against market manipulation. DX.Exchange customers will not be purchasing ownership of shares directly, but rather, will purchase tokens which represent shares in a company, COO Amedeo Moscato told CoinDesk. “Henceforth, when they become a token holder, they own stocks or portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth,” he explained. MPS Marketplace Securities, Ltd, which DX.Exchange has an agreement with, will purchase the real-world stocks based on customer demand, and generate ERC-20 tokens to represent each share. The actual shares themselves would be stored in a segregated account separate from any of MPS’ internal funds or usage. This is intended to act as a safeguard against the company having issues or filing for bankruptcy, he explained. Moreover, MPS will fall under the supervision of the Cyprus Securities and Exchange Commission, while DX.Exchange will abide by European Union regulations and authorities. At launch, MPS said it will purchase shares in AlphaBet, Apple, Amazon.com, Facebook, Microsoft Corporation, Tesla, Netflix, Baidu, Intel Corporation and Nvidia. In addition to the matching engine, the platform is using Nasdaq’s financial information exchange (FIX) protocol, which is a standard used by a number of options securities trading firms in the U.S. The protocol defines electronic message exchanges for two parties conducting securities transactions. DX.Exchange is also partnering with Bloomberg, with the platform powering Bloomberg’s crypto center in turn. In addition to its stock services, DX.Exchange will offer peer-to-peer crypto trading. Nasdaq image via oleschwander / Shutterstock

Bitcoin Eyes Test of Key Price Hurdle in First Since November

Bitcoin Eyes Test of Key Price Hurdle in First Since November

Bitcoin (BTC) could test a key resistance line for the first time in nearly two months. The widely followed 50-day simple moving average (SMA) line is currently located at $3,940 – $100 above bitcoin’s current price of $3,840 – according to Bitstamp data. The crucial SMA line was last put to test on Nov. 8. Back then, the SMA was located at $6,450 and was serving as a stiff resistance. On Nov. 14, BTC nosedived below $6,000, putting the bears back into the driver’s seat.  As a result, the gap between the 50-day SMA line and price widened sharply in the following two weeks. Notably, on Nov. 25, the 50-day MA line was located at least $2500 above price. That spread, however, has narrowed sharply in the last two weeks, indicating waning bearish pressures. Further, price chart analysis indicates that the bulls have won control, at least for the short-term. BTC, therefore, could test and possibly break above the 50-day SMA line of $3,940 in the next day or two. Daily chart As seen above, BTC ran into offers near the 50-day SMA earlier today. Notably, at 00:05 UTC, BTC was trading $40 short of the 50-day SMA. Despite the pullback from intraday highs near $3,900, the outlook remains bullish, as the positive divergence of the relative strength index (RSI), confirmed on Dec. 18, is still valid. Further, 5- and 10-day exponential moving averages (EMAs) are beginning to curl upwards. The RSI is also biased bullish above 50.00. The 50-day SMA is indeed trending south, indicating a bearish setup. The long-term averages, however, are lagging indicators. As a result, the price action always supersedes the long-term moving average lines. It is worth noting that a break above the 50-day SMA, if confirmed, would open the doors to $4,170 – neckline of the inverse head-and-shoulders pattern. The 50-day exponential moving average (EMA) is also located just below the neckline hurdle. So, $4,170 is the level to beat for the bulls. 6-hour chart The triangle breakout seen in the 6-hour chart indicates that the rally from the December low of $3,122 has resumed. The RSI is printing bullish levels above 50.00. Meanwhile, the stacking order of the 50-candle MA above the 100-candle MA is also a classic…

Thai Government Agency Develops Blockchain Tech for Elections Voting

Thai Government Agency Develops Blockchain Tech for Elections Voting

A Thailand government agency has developed a blockchain-based solution that’s set to digitalize elections voting in the country. According to a report from Bangkok Post on Thursday, Thailand’s National Electronics and Computer Technology Center (NECTEC), a unit of the Ministry of Science and Technology, has already completed the development of the system for blockchain-based voting and is looking for trial partners. Chalee Vorakulpipat, head of the cybersecurity laboratory at NECTEC, was quoted as saying in the report: “Nectec developed blockchain technology for e-voting that can be applied to national, provincial or community elections, as well as business votes such as the board of directors. The goal is to reduce fraud and maintain data integrity.” At this stage, the agency is looking to test the blockchain system on a smaller scale, such as for elections in universities, provinces and communities, and is seeking partners for the test. For large-scale implementation, such as for general elections, the agency will require more time as “every voter needs to have an affordable mobile internet connection and identity verification,” Vorakulpipat said in the report. Several countries have been looking to use blockchain technology for more efficient voting processes. Back in November, South Korea announced that it was set to test a blockchain system in an effort to improve the reliability and security of online voting. In August, the municipal government of Japanese city Tsukuba tested a blockchain-based system that lets residents cast votes to decide on local development programs. The U.S. state of West Virginia also planned to roll out a blockchain-based mobile voting app to all of the state’s 55 counties so that military personnel stationed overseas can more easily cast their ballots in the 2018 midterm elections. Voting box image via Shutterstock

144 ICOs Launched During 2017 Failed Last Year

144 ICOs Launched During 2017 Failed Last Year

Altcoins Coinopsy, a website that maintains an active catalog of “dead” cryptocurrencies, currently estimates that 264 altcoins failed to survive the 2018 bear market. Of the projects that did not survive to see 2019, more than half were launched in 2017 through an initial coin offering (ICO). Also Read: Last Year’s Altcoin Army Have Become This Year’s Bitcoin Brigade 264 Altcoins Failed to Survive 2018 According to Coinopsy’s catalog of dead coins, 264 cryptocurrencies that were active at the start of 2018 have since failed. The website defines a dead coin as comprising “a token or coin that has been abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project.” Two of the projects that died last year did so for the second time, with both Philosopher Stones and Scorecoin having launched in 2013 and failing the following year, before apparently resurrecting as a response to the 2017 bull market. 55% of 2018’s Failed Projects Were Launched Through ICO in 2017 Coinopsy divides dead coins into four categories determined by whether a failed cryptocurrency comprised an initial coin offering, a joke, a scam, or an abandoned project. Of the 264 cryptocurrencies that failed to survive 2018, 144 comprised ICOs that launched during the preceding year, highlighting the risks associated with investing in initial coin offerings. The list predominantly comprises ICOs that either outright failed or comprised scams, such as Dimoncoin, a project that “had a loophole in the smart contracts that allowed the creator to mint unlimited tokens.” The second largest category of cryptocurrencies that died during 2018 were projects that were abandoned by their developers, comprising 27 percent of the year’s death toll. A total of 73 altcoins were abandoned last year, including Rare Pepe Party, Masternode Community Coin, and India Coin. 20 percent of last year’s failed cryptocurrencies are suspected of comprising scams, with 55 projects accused of fraudulent activity. Do you think that the ICO sector will continue to see widespread failures throughout 2019? Share your thoughts in the comments section below! Images courtesy of Shutterstock At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction…

7 Legal Questions That Will Define Blockchain in 2019

7 Legal Questions That Will Define Blockchain in 2019

Jenny Leung is an Australian attorney (New York Bar admission pending) who will be starting as a blockchain attorney at Blakemore Fallon in 2019. Formerly, she was an attorney at the Australian Securities and Investments Commission (ASIC) and a privacy consultant at PwC. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review.  7. Will the SEC define ‘sufficient decentralization?’ The SEC delivered some of its most important regulatory guidance of 2018 through conferences, interviews and personal statements. With each pronouncement, the SEC representative stated their views did not necessarily reflect the views of the SEC. Looking back at the greatest hits, from “Every ICO I’ve seen is a security” to “If the network on which the token or coin is to function is sufficiently decentralized … the assets may not represent an investment contract” and “current offers and sales of ether are not securities transactions,” the SEC has not officially confirmed any of these statements and has instead clarified that staff views are non-binding and create no enforceable legal rights. Although the SEC does not make law, it may release official guidance on these areas that will effectively set up goalposts for blockchain networks to achieve “sufficient decentralization.” Even if some level of decentralization could bring token sales outside of the SEC’s jurisdiction, was SEC Commissioner William Hinman correct in saying that the ethereum network is sufficiently decentralized? At what stage would offers and sales of a token transform from a security to a non-security? 6. Will a crypto ETF be granted? The last remaining cryptocurrency-based ETF application, the VanEck/SolidX Bitcoin ETF, may see an answer on February 27, 2019. Some key questions that remain are: The scope of the term “significant markets.” To quote the VanEck SolidX Bitcoin Trust Presentation, “As issuers we are concerned the SEC staff have created a moving target in their use of the word ‘significant.’ The Staff have never provided guidance as to what ‘significant’ means, enabling them to move their goal post indefinitely.” The correct interpretation of Securities Exchange Act of 1934 Section 6(b)(5), which requires that the rules of “the exchange” are designed to prevent fraudulent and manipulative acts and practices. Does “the exchange” refer to the national securities exchange where the ETF would trade,…

From Dorian Nakamoto to Elon Musk: The Incomplete List of People Speculated to Be Satoshi Nakamoto

From Dorian Nakamoto to Elon Musk: The Incomplete List of People Speculated to Be Satoshi Nakamoto

Ten years ago, on Jan. 3, 2009, the Bitcoin (BTC) network was created as Satoshi Nakamoto mined the genesis block, also known as block number zero. However, the identity behind the Bitcoin creator has remained one of the biggest mysteries in the crypto community since the original white paper was published by Satoshi in October 2008. Various journalistic investigations have attempted to unveil the person or group of individuals responsible for creating the top digital currency, but Satoshi’s real identity remains unknown to date. On his P2P Foundation profile — which went inactive in late 2010 — Nakamoto identifies as a 43-year-old male who lives in Japan, but he almost never posted on the Bitcoin forum during local daytime. Other clues, like the British spelling of words like “colour” and “optimise,” suggest he was of Commonwealth origin. So far, the media and community have come up with numerous results of who might be the real Satoshi, none of which have been confirmed. On June 14, 2018 the United States Central Intelligence Agency (CIA) said that it could “neither confirm nor deny the existence” of Nakamoto after a Motherboard journalist requested information on his identity through the Freedom of Information Act (FOIA). Here’s the (incomplete) list of potential candidates. Vili Lehdonvirta Suspect credentials: a 38 year-old Finnish professor at the Helsinki Institute for Information Technology Source: Joshua Davis, The New Yorker One of the first attempts to reveal Satoshi’s identity dates back to October 2011, when journalist Joshua Davis wrote a piece for the New Yorker. During his quest to identify the Bitcoin creator, Davis found Michael Clear, a young graduate student in cryptography at Trinity College in Dublin, who had worked at Allied Irish Banks to improve its currency-trading software and co-authored an academic paper on peer-to-peer technology. Clear denied he was Satoshi, but offered the journalist the name of “a solid fit for Nakamoto” — a thirty-one-year-old Finnish researcher at the Helsinki Institute for Information Technology named Vili Lehdonvirta, who used to be a video game programmer and studied virtual currencies. However, after being contacted by Davis, Lehdonvirta also claimed he was not Satoshi. “You need to be a crypto expert to build something as sophisticated as bitcoin,” he said. “There aren’t many of…

Last Year’s Altcoin Army Have Become This Year’s Bitcoin Brigade

Last Year’s Altcoin Army Have Become This Year’s Bitcoin Brigade

Altcoins This time last year, altcoiners were jubilant at the soaring value of their respective cryptos, while gloating at BTC’s diminishing dominance. “Penny coins” such as Ripple, Iota, and Verge were rocketing, with fanboys decrying any media outlets that dared to “FUD” them. One year later, and most of those altcoiners have crawled back into the woodwork or returned to their first love – Bitcoin. Also read: Over 900 Retailers Worldwide Now Accept Bitcoin Cash What a Difference a Year Makes 2018 is commonly perceived as having been a bad year for Bitcoin, but a closer examination of the facts shows that isn’t necessarily the case. As Jameson Lopp noted in his ‘Bitcoin By the Numbers: 2018 Recap’: “2018 was the worst year for Bitcoin. Also, 2018 was the best year for Bitcoin. It just depends upon which metrics you’re focused.” One lesser documented way in which 2018 benefited BTC was through the death, to all intents and purposes, of many altcoins, leading their apostate acolytes back to the Church of Bitcoin. In 2018, BTC may have lost the boomers – the mom and pop investors who bought near the top and then ran a mile when the market crashed – but it won over a good proportion of altcoin investors. Those with the perspicacity to recognize the huge difference between an 80 percent and a 95 percent drawdown have sheepishly rediscovered their love of Bitcoin. One year ago, for instance, Twitter user “The Coin Dad” was taking aim at news.Bitcoin.com for publishing a “MAJOR FUD ARTICLE” about verge (XVG), in which the altcoin was described as vaporware. One year on and The Coin Dad’s tweets show that he is firmly back in Casa Bitcoin. While Some Flit Towards the Light, Others Retreat While The Coin Dad has had the good grace to regret his dalliance with Verge in the heady days of early 2018, many of his kind have simply withered away and left the crypto scene altogether. The replies tweeted at news.Bitcoin.com and other media organizations, one year ago, for publishing unflattering coverage of altcoins was littered with expletives and invective. In hindsight, it is safe to assert that these individuals were less concerned with the accuracy of the reporting than with the effect…

How to Last the Crypto Winter? Seek Simplicity, Manage Complexity

How to Last the Crypto Winter? Seek Simplicity, Manage Complexity

Jake Yocom-Piatt is the Project Lead for Decred, a hyper-secure, adaptable and self-funding digital currency. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review. In 2018, we have seen the cryptocurrency market cap go from all-time highs in January to falling over 80 percent by December, despite little changing in the context of the technological fundamentals. If little has changed with the fundamentals, then there must be other factors driving the manic buying and panic selling cycles present in these markets? A persistent pattern I have observed in the context of investors and projects in the space is one of information asymmetry. This information asymmetry manifests itself in various contexts, e.g. either being a very informed or a very uninformed investor, the ability to determine if a project has overpromised on its technological deliverables or not. Another way of viewing this asymmetry is that it arises from hidden complexity, whether we’re talking about perceiving the value in an asset or implementing a new piece of software. While I can describe bitcoin in a single phrase as “gamification of time-stamping,” describing and delivering a working system that implements that concept is a serious technical challenge. With Decred, we experienced this hidden complexity firsthand while building Politeia, a time-ordered filesystem, for use as our proposal system. Making cryptocurrency markets less volatile and projects more substantive is a matter of doing what we can to eliminate the information asymmetry that arises from technological complexity, both with investors and software alike. Complexity for Investors I have observed a very bimodal distribution when it comes to the extent to which cryptocurrency investors are informed. There is a minority that is incredibly well informed and a majority who are quite uninformed. This knowledge gap often benefits the well-informed at the direct expense of the uninformed, so the former are incentivized to maintain this arrangement. Similar to many other markets, the less-informed chase the carrot of easy profits dangled in front of them by the better-informed. When this herd-like behavior is combined with relatively thinly traded markets, it creates serious volatility, which has much in common with over-the-counter (“OTC”) stocks. The perception of value drives investor decision-making, so the collective psychological state of investors determines the value of an asset.…

New York Assemblyman Announces Creation of ‘First’ US Cryptocurrency Task Force

New York Assemblyman Announces Creation of ‘First’ US Cryptocurrency Task Force

An assemblyman of the New York state (NYS) legislature announced in a Facebook post on Jan. 3 that the state will have the nation’s “first” cryptocurrency task force. In the post, Clyde Vanel, an NYS assemblyman and Chair of Subcommittee on Internet and New Technologies, stated that New York became the first state in the United States (U.S.) to create a cryptocurrency task force aimed at studying the regulation, use, and definition of digital currency. The governor Andrew Cuomo signed the bill dubbed “The Digital Currency Study Bill” into law on Dec. 21, 2018. Back in June, the banks committee of the NYS legislature voted to progress the bill to create a digital currency task force. The members of the task force — including technologists, consumers, investors, blockchain companies and academics — appointed by the governor, Senate, and Assembly will reportedly have to submit relevant reports by Dec. 15, 2020. The report will study the impact of regulations on the development of digital currencies and blockchain industries within the state, the use of cryptocurrencies’ effect on local tax receipts, and the transparency of  the digital currency marketplace. Commenting on the initiative, Julie Samuels, executive director of a nonprofit organization representing New York City tech companies, Tech:NYC, said that “cryptocurrencies and blockchain technology will, without a doubt, greatly impact finance and many other industries across the globe for years to come.” Vanel stated: “New York leads the country in finance. We will also lead in proper fintech regulation. The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.” Other states in the U.S. have introduced legislation to create government bodies to study the potential impact of the blockchain and crypto industries on state commerce. In June, Connecticut governor Dannel Malloy signed SB 443 into law, which established a blockchain working group to study the technology. The law also established time-frames for investigating and providing reports on the potential use of crypto in criminal activities.

What we accomplished at Coinbase in Q4 2018

What we accomplished at Coinbase in Q4 2018

Last week, I sent a note to the Coinbase team about what we accomplished in Q4. I’m sharing it here with our customers and the crypto community more broadly as I’ve done in the past . Team, I spent time at the last All Hands of the year reflecting on 2018 as a whole. This year we added a lot of headcount. As expected, this put some strain on communication, decision making, and even trust. We’re a largely new team that still needs to come together and gel, and this will be a major focus of 2019. At the same time, we had incredible successes including everything we launched (see below), outstanding hiring, and a well timed fundraise that sets us up for success. Below, I’ll do my best to capture everything we accomplished in Q4. WE LAUNCHED: In Q4, we launched everything from new products to requested features to integrations that scale our ability to serve customers. Together with the assets, rails, and geographies we’re adding, we’re building the infrastructure to continue our role as the bridge from fiat to crypto for people all around the world: Consumer crypto-to-crypto trading: Giving customers the ability to trade crypto pairs directly on our platform. News on Consumer: Showcasing relevant news to help our customers learn about the crypto space. Watchlist: Simplifying the customer experience by allowing them to personalize their Coinbase dashboard and take in information at-a-glance. Address book and whitelisting for Pro: Streamlining customers’ ability to safely send crypto, and more easily add bank accounts. PayPal integration: Giving US customers the opportunity to make fast, free withdrawals to PayPal accounts. USDC: A digital, programmable dollar, launched in partnership with Circle. Coinbase Earn: Creating opportunity for more people to understand and use crypto by learning about it and earning it. WE ACHIEVED: There is so much work that goes on at Coinbase that enables us to launch features, products, and add assets, all while ensuring we live up to our reputation as most trusted and easiest to use. The following are just a few examples of this kind of work from Q4: We put security first — we successfully completed an on-blockchain migration of approximately $5 Billion (as valued the week ending Dec. 7, 2018) of cryptocurrency from Generation…