Overstock’s tZERO Closes Its Security Token Offering Tonight

Overstock’s tZERO Closes Its Security Token Offering Tonight

tZERO, a blockchain subsidiary of e-commerce retail giant Overstock, announced today Aug. 6 that its Security Token Offering (STO) will comes to an end Monday night, with no further extensions. tZERO said that its STO will close at 11:59 PM EDT, whereas investors with fully executed Simple Agreements of Future Equity (SAFEs) have to remit funds to tZERO by 5 PM EDT Wednesday. The startup will reportedly reveal the results of the STO on Thursday, August 9, during Overstock’s earnings call. While tZERO originally limited the maximum amount of tokens to $250 million, it is currently unclear how much it raised during the round. The company initially introduced the STO in the form of an Initial Coin Offering (ICO) in December last year, having attracted strong crypto and traditional institutional interest that reportedly resulted in $100 million committed to the platform during the first 12 hours. In March, tZERO’s ICO fell under scrutiny from the U.S. Securities and Exchange Commission (SEC), causing Overstock’s share price to drop. Prior to that, Overstock had filed for its ICO to be classified under Regulations D and S instead of as a traditional securities filing. This meant that U.S. citizens must be accredited investors to have invested in the ICO, and that offshore transactions could not involve U.S. citizens. In June, tZERO signed a letter of intent with Beijing-based investment company GSR Capital for the purchase of $160 million in tZERO Security Tokens at a price of $10.00 per token. Per the statement, tZERO also “entered into executed SAFEs in excess of $168 million for Security Tokens, of which over $95 million had been already funded.” While Overstock announced its intentions to build an alternative ICO token trading platform late last year, tZERO initially introduced the prototype of its security token trading platform in April. Developers aimed to present a means of trading security tokens which are backed by real assets and are somewhat an interlink between blockchain and the traditional financial sector. The platform will purportedly allow traders to exchange tokens “in an easy, compliant, and user-friendly manner” with features such as risk management software, an order management system, matching engine, and others.

China: Trader Sues Exchange OKCoin for Failing to Release Bitcoin Cash

China: Trader Sues Exchange OKCoin for Failing to Release Bitcoin Cash

A Chinese Bitcoin (BTC) investor has sued local crypto exchange OKCoin for allegedly preventing him from getting Bitcoin Cash (BCH) after the BTC fork, local news agency Legal Weekly reports July 31. The case is reportedly the first legal action in China that involved last year’s fork of Bitcoin. The investor, known under the pseudonym Feng Bin, filed a lawsuit against OKCoin, accusing the exchange of blocking him from receiving 38.748 BCH that he was due after Bitcoin’s hard fork in August 2017. In the lawsuit, Feng Bin states that he attempted to sell the Bitcoin Cash when the digital currency reached its all-time high of around $4,000 in December, 2017. However, when the investor tried to withdraw the BCH after the fork, he reportedly “found that there was no ‘button’ to extract the [BCH] that the platform promised.” Following a complaint to the platform’s customer support, OKCoin stated that Feng Bin could not extract any Bitcoin Cash because the platform’s program for claiming the forked crypto has expired. The investor in turn claimed that the crypto exchange had not made an official announcement about the deadline for claiming Bitcoin Cash: “I have been paying attention to the announcement of the OKcoin currency release. In all the announcements, there is no declaration of the deadline for receipt and the removal of the program.” OKCoin has reportedly challenged Feng Bin’s claim, citing inconsistencies between his story and the records of his account balances. Bitcoin Cash is one well-known example of a hard fork, which is a permanent split in a blockchain protocol, wherein nodes running in the previous version will no longer be accepted in the new version. Bitcoin forked on August 1, 2017, leading to the presence of two completely different digital currencies, while users who held Bitcoin prior to the fork received an equal number of Bitcoin Cash. BCH celebrated its “first birthday” earlier last week. Bitcoin Cash has been the subject of some controversy throughout the year. Roger Ver, one of the biggest promoters of BCH claimed that Bitcoin Cash is the “real Bitcoin” in November 2017. Ver said that BCH will “have the bigger market cap, trade volume and user base in the future.”

LedgerX Claims ‘Record’ July for Bitcoin Options Trading

LedgerX Claims ‘Record’ July for Bitcoin Options Trading

Bitcoin derivatives trading provider LedgerX says it saw a “record” amount of trading volume over the last two months. The firm cleared $50 million in derivatives volume in July alone, president and chief risk officer Juthica Chou told CoinDesk. Earlier this month, the firm also executed its largest trade to date for a December $15,000 strike call. Partly in response to increased client demand, LedgerX launched a new bitcoin purchasing system last month. Called one-click bitcoin, the service acts as a “one-stop shop” for institutional or high net-worth clients to buy bitcoin easily through a federally-regulated platform, Chou said. The service is built on top of the LedgerSavings platform LedgerX debuted in May. The demand for this type of product is high, Chou said. “[One-click bitcoin] was born out of a lot of the customer demand that we’ve seen. I think it’s showing that derivatives and options are really useful long-term products and they can offer killer solutions to a wide variety of participants,” she said, adding: “June was one of the record months for us and July was a record month by far. If you look at how we’ve been doing our transactions, a third of the value has been over the last month, we’ve seen a lot of healthy activity.” The platform is available to all of LedgerX’s clients, she said, which include roughly 130 institutions as well as high net-worth individuals. The company has already begun conducting transactions with the system, and one client will see at 15 percent per annum return on their bitcoin for the next six months. This figure will remain steady, even if bitcoin’s price drops or stays stagnant in that period. Going forward, LedgerX hopes to add ethereum products. The firm is working with regulators to receive approval, but Chou is confident that the company will receive this approval as all of its products are “full collateralized.” LedgerX 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.

“People’s Money” Crypto to Outlast Fiat “Scam” – Rich Dad, Poor Dad Author

“People’s Money” Crypto to Outlast Fiat “Scam” – Rich Dad, Poor Dad Author

Featured The author of the best-selling book ‘Rich Dad, Poor Dad’, Robert Kiyosaki, has spoken in favor of virtual currencies during a recent podcast. Mr. Kiyosaki described the United States Dollar (USD) as comprising a “scam” and predicted that precious metals and cryptocurrencies will outlast fiat currencies. Also Read: Many Swiss Bankers and Financial Regulators Quit to Join the Crypto Space Mr. Kiyosaki Predicts “Biggest Crash in World History” The author of the best-selling personal finance book ‘Rich Dad, Poor Dad’, Robert Kiyosaki, is predicting that the mainstream financial system is heading toward a crisis of unprecedented size and scale. Speaking to News.com.au, Mr. Kiyosaki recently stated: “Unfortunately we had a big crash in 2000, they called it the dotcom crash, then in 2008 it was the subprime real estate crash. The next is going to be the biggest of all. When it’s coming I don’t really know, but the foreshocks are sounding right now.” Fiat Money is “Fake” Money Mr. Kiyosaki criticized fiat money, stating: “There’s so much fake money. In 1971 Nixon took the dollar off the gold standard and the US dollar became fake money.” Mr. Kiyosaki added that “The problem is it also became invisible, so they could print as much as they wanted. That’s why savers got wiped out.” “For the average person,” Mr. Kikyosaki asserts, the easiest way to hedge against the oncoming crisis is to “just buy some Aussie gold or silver coins from the Perth Mint. When the dollar goes down, gold goes up.” Cryptocurrencies Will Outlast Fiat Currencies In an interview with Sane Crypto Podcast, Mr. Kiyosaki recently praised cryptocurrencies, expressing his expectation that virtual currencies will supersede fiat currencies within the near future. During the podcast, Mr. Kiyosaki describes three forms of money: “government money […] which is fiat currency,” “God’s money, which is gold and silver, [which] will be here after the cockroaches go extinct,” and people’s money, which is [virtual] currency.” “I think the dollar is toast because gold and silver and cyber currency are going to take it out […] The US dollar is a scam,” Mr. Kiyosaki stated, adding, “I think we’re watching the end of the dollar.” What is your reaction to Mr. Kiyosaki’s predictions? Share your thoughts in the comments…

US: Chair of House Judiciary Committee Discloses Ownership of Cryptocurrency

US: Chair of House Judiciary Committee Discloses Ownership of Cryptocurrency

The chair of the Judiciary Committee of the U.S. House of Representatives may be the first member of Congress to disclose that he owns cryptocurrency, Sludge reports Aug. 6. Congressman Bob Goodlatte (R-VA) reported that he owns between $17,000 and $80,000 in digital currency in his annual Financial Disclosure Statement. Goodlatte filed the statement on May 10, a month before the U.S. Ethics Committee issued new rules about disclosing digital currency holdings. Per the new rules, all House Members must disclose their own and their spouse’s crypto holdings valued over $1,000, and report over $1,000 worth of crypto transactions within 45 days. According to the statement, the Congressman has principally invested in Bitcoin (BTC), with some holdings in major altcoins Ethereum (ETH) and Bitcoin Cash (BCH). Goodlatte’s son, Bobby Goodlatte Jr., is reportedly an angel investor in San-Francisco-based crypto exchange Coinbase, however it is unclear when and how much he invested in the company. For some lawmakers in the U.S. Congress, cryptocurrencies are an object of suspicion or outright derision. At a hearing this spring, Representative Sherman of California went so far as to call cryptocurrency “a crock” adding that they can only serve to “help terrorists and criminals move money around the world.” While some regulators and lawmakers have called for tightening regulations on digital currencies, there are several members of Congress who are proponents for the industry. Bitcoin-friendly Congressman Jared Polis is known for the establishment of the Congressional Blockchain Caucus, a group that aims to further expand blockchain technology and promotes a laissez faire regulatory approach. Senator Mark Warner earned a reputation as a crypto-bull in forecasting the market’s capitalization to exceed $20 trillion by 2020. “I was an early investor in cell phones back in the ’80s, and I believe blockchain has the potential to be just as transformational as cell phones. As our government begins to look at crypto, I don’t think you can separate cryptocurrencies from the technology they’re based on,” he said.

Exchanges Round-Up: Coinjar Launches Aussie Crypto Fund, Square Trades OTC

Exchanges Round-Up: Coinjar Launches Aussie Crypto Fund, Square Trades OTC

Exchanges In recent news pertaining to virtual currency exchanges, Coinjar has launched Australia’s first cryptocurrency index fund; Square’s latest quarterly report has revealed that company is executing its crypto trades via the over-the-counter (OTC) markets rather than “public cryptocurrency exchanges;” and Poloniex has launched EOS pairings. Also Read: SEC Has No Jurisdiction to Look at Bitcoin for ETF Decision, Admits Commissioner Coinjar Launches Australia’s First Crypto Index Fund Coinjar, a financial and cryptocurrency services company based in Australia and the United Kingdom that claims to have processed over $1.2 billion in virtual currency transactions, has announced the launch of Australia’s first cryptocurrency index fund. The “Coinjar Digital Currency Fund” is an index fund targeting wholesale investors. Eligible investors must have net assets of at least $2.5 million AUD or have a gross income of no less than $250,000 AUD for the previous two years. Minimum contributions from new investors have been set at $50,000 AUD, whilst current investors are able to make incremental payments of at least $10,000 AUD. The fund has two “classes”; ‘Bitcoin Class’ – “which provides exposure to Bitcoin (BTC) only”; and ‘Mixed Class’ – which “aims to track the performance of four digital currencies, weighted by fixed supply – Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC).” The fund does not incur “establishment costs, contribution fees, or performance fees,” however, “Management fees are 1.3% per annum for Bitcoin Class and 1.8% per annum for Mixed Class plus normal operating costs.” Jordan Michaelides, institutional head at Coinjar, stated: “We are launching the Coinjar Digital Currency Fund to handle the custody risks, simplify the investment process and provide industry best practice in security for wholesale investors.” Quarterly Report Shows Square is Trading Crypto Via OTC Markets Rather Than Exchanges Financial and merchant services company, Square, Inc., has revealed in its most recent quarterly report that the company is trading bitcoin via “private broker-dealers” rather than “public cryptocurrency exchanges.” Analysts have speculated that the move will facilitate Square providing a cryptocurrency platform with reduced price volatility when trading larger volume. Meltem Demirors, chief strategy officer at Coinshares, stated, “Working with a broker likely gets Square better pricing and better execution services than floating orders on the open market, as well as more confidentiality.” Hunter Horsley,…

How we’re scaling our platform for spikes in customer demand

How we’re scaling our platform for spikes in customer demand

Lessons learned from 2017 Our traffic patterns in 2016, the year before the explosion in cryptocurrency popularity, had been remarkably consistent. Ahead of this boom, if we had drawn a red line where we expected our platform to experience issues, we would have put it somewhere around four or five times our typical daily maximum traffic of about 100,000 backend API requests per minute. Here’s a quick look at backend requests per minute in 2016 before the price of ether skyrocketed.However, in May and June of 2017, the price of ether skyrocketed and traffic exploded past that red line. There were several days during this period where we experienced sustained traffic in this red zone, during which we experienced periods of downtime. During the early heavy traffic period in 2017, here’s what backend requests per minute looked like.To solve these scalability issues fast, the Coinbase engineering team started by focusing on the low-hanging fruit in our environment. We worked around the clock to perform tasks like vertically scaling, upgrading database versions to take advantage of performance improvements, optimizing indexes, and splitting out hotspot collections into their own clusters. Each of these improvements bought us headroom, but these low-hanging fruit were beginning to dry up, and traffic was continuing to climb. During each outage, the pattern was the same: our primary monitoring platform would show a 100x spike in latency, along with a strange 50/50 split between Ruby and MongoDB time. As our primary datastore, it made sense that MongoDB time would experience this high-latency during periods of heavy traffic, but the Ruby time wasn’t adding up. In earlier monitoring systems, this is how “the Ghost” appeared.We affectionately began to refer to this issue as “the Ghost,” as our existing monitoring tools were unable to provide clear answers to some of our most critical questions. Where were these queries coming from? What did they look like? Why was there a correlated spike in Ruby time? Could the issue be originating on the application side? Simply put, our existing monitoring services were not able to utilize all of the context available to us inside our environment. We needed a framework for answering and visualizing the relationships between our environment’s components. We began to further instrument database queries by modifying…

Crypto Trading App Robinhood Adds Support for Ethereum Classic

Crypto Trading App Robinhood Adds Support for Ethereum Classic

  Commission-free crypto trading app Robinhood has listed Ethereum Classic (ETC), according to an official announcement Monday, Aug. 6. Robinhood customers can also invest in Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Dogecoin (DOGE), as well as monitor market data for ten other cryptocurrencies. Currently available in 19 states of the U.S., Robinhood crypto trading app was launched in February, 2018, initially listing Bitcoin and Ethereum, and available only in four states. On July 12, Robinhood launched support for Bitcoin Cash and Litecoin, just a few days prior to the introduction of Dogecoin. Robinhood originally intended to operate its zero-fee business “on break even basics” and does not “plan to profit from it for the foreseeable future,” giving priority to expanding its customer base instead. In May, Robinhood raised $363 million in a series D funding round to expand its business, tо а valuation of $5.6 billion, which is a fourfold growth from the previous year. In late June, Robinhood was rumored to be considering the launch of their own cryptocurrency wallet after posting a job listing for crypto engineers. Ethereum Classic is seeing the most gains over the past 24 hours among the top 20 cryptocurrencies by market capitalization according to Coinmarketcap. The altcoin is ranked 12 and is trading at $18.34, up almost 5 percent over the 24 hour period. In June, ETC jumped 25 percent after major U.S. crypto exchange Coinbase announced it would list ETC on its platform in the near future. Final testing for ETC support began last week, with the exchange announcing that Coinbase Pro would be ready for inbound transfers of ETC tomorrow, Aug. 7.

Bitcoin Falls Short of Breaking $7,000, Other Altcoins See Slight Losses

Bitcoin Falls Short of Breaking $7,000, Other Altcoins See Slight Losses

August 6: Bitcoin (BTC) is making several attempts at breaking back above the $7,000 mark, staking its recovery after a sharp market tumble this weekend. Many major cryptocurrencies continue to see minor losses, as data from Coin360 shows. Market visualization from Coin360 Bitcoin (BTC) is trading around $6,974 at press time, down 1.17 percent on the day. The leading cryptocurrency has made several attempts to break above the $7,000 threshold, trading as high as $7,127 in early trading hours. These fleeting spikes failed to hold as of press time however, and the coin’s losses on the week now tally above 14 percent. On the month, Bitcoin is still up almost 5 percent. Bitcoin’s 24-hour price chart. Source: Cointelegraph Bitcoin Price Index Ethereum (ETH) has seen negligible fluctuation on the day to trade around $403, despite several attempts at breaking to a higher price point early this morning. The top altcoin is still down over $50 in value by its weekly chart, equating to a 11.42 percent loss. Most of these losses were posted during a steep decline late July, with the asset subsequently trading sideways through most of August. On the month, Ethereum is down around 13.7 percent. Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index On CoinMarketCap’s listings, most of the top ten coins are seeing small fluctuations within a 3 percent range, with only IOTA (MIOTA) seeing a more significant price change, losing 6.5 percent to trade around $0.85 at press time. Yesterday, the alt decoupled from the wider market to grow over 7 percent, with an apparent retracement setting in today. Cardano (ADA) and Litecoin (LTC) are trading stably at press time, both just edging into the red, with the former trading at $0.13 and the latter at $0.73 at press time.   Among the top twenty coins by market cap, Ethereum Classic (ETC) continues to claim further gains, up a further 6.3 percent on the day to trade at $18.44 at press time. The asset is still riding on positive momentum triggered by news of its imminent listing on popular U.S. crypto exchange and wallet service provider Coinbase, set for August 7. Ethereum Classic’s 7-day price chart. Source: CoinMarketCap Total market capitalization of all cryptocurrencies is around $252 billion at press…

Overstock’s tZero Wraps Up Months-Long Token Sale

Overstock’s tZero Wraps Up Months-Long Token Sale

Overstock.com’s token platform subsidiary tZero is officially ending its security token offering (STO) on Monday night. TZero announced that its STO would end at 11:59 p.m. Eastern Daylight Time, or 03:59 UTC. Further, the platform said “there will not be further extensions,” according to statements. The statement added that “investors with fully executed Simple Agreements of Future Equity (SAFEs) have until 5 PM (EDT) Wednesday, August 8 to remit funds to tZero. The company plans to report on the results of the STO this coming Thursday, August 9, 2018, during Overstock’s earnings call.” It was not immediately clear how much tZero raised during the round. A spokesperson for tZero declined to provide additional details when reached, telling CoinDesk “results will be announced during Overstock’s earnings call on Thursday.” The STO was originally announced as a more traditional initial coin offering (ICO) late last year, almost immediately seeing some 2,000 investors and $100 million committed to the platform, according to Overstock.com founder Patrick Byrne. The startup later claimed that it raised $100 million as part of its token presale, which ended in March and preceded the rest of the STO, as previously reported by CoinDesk. Overall, the firm had planned to raise as much as $250 million through the sale. Abacus 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.