A Different Look at Crypto Market and Top Assets, How Dominated Is It?

A Different Look at Crypto Market and Top Assets, How Dominated Is It?

With Bitcoin regaining market dominance of over two-thirds of the entire combined cryptocurrency capitalization, discussions regarding market share of prominent altcoins have largely left the dominant cryptocurrency discourse. Here is a different outlook on the market and on how the top cryptocurrencies stack up with the rest. Market dominance flows from alts to BTC since 2018 Market dominance between the top cryptocurrencies by market capitalization has changed over the last year. As of Aug. 19, 2018, as seen in the chart below, the three largest coins comprised 71.95% of the combined cryptocurrency market — an 8% difference to the figures seen now. Meanwhile, the top 15 cryptocurrencies of 2019 are still seeing more dominance than the top 20 of 2018, which represented 90.53%, and the top 25, which came to 91.53%. One year ago, the 18 largest markets, comprising 1% of the 1,770 cryptocurrencies that were then-listed on CoinMarketCap, represented 89.85% of existing cryptocurrency wealth, while the remaining 99% comprised 10.15% — an 80% greater share than the 5.60% represented by 99% of the digital currency markets today. Compared with 12 months ago, the crypto markets show a redistribution of market dominance from altcoins back to Bitcoin (BTC), with the four largest altcoins among crypto assets posting the largest decline in market dominance.  Currently, the four largest altcoins comprise 15.7% of the combined crypto market cap, a 42% drop from the 27.07% represented by the top four altcoins in August 2018. Additionally, the market share represented by the fifth- to the 14th-largest alternative cryptocurrencies has slipped from 9.85% of the total crypto value to 8.03%, while the 15th- to 24th-largest altcoins has fallen from 2.97% to 2.26% BTC, ETH and XRP comprise 80% of combined crypto market cap Bitcoin currently boasts a capitalization of roughly $179.55 billion, comprising 68.41% of the combined crypto capitalization of $262.45 billion. BTC’s market cap is up by 60% from $112,03 billion 12 months ago, with market dominance gaining by roughly one-third from 51.64%. Roughly $21 billion worth of BTC changed hands during the previous 24 hours, comprising 33.02% of the combined cryptocurrency trade volume and ranking it as the second most traded crypto asset.  Ether (ETH) is the second-largest market by capitalization, currently representing 7.55% of the combined crypto market…

Chainzilla and Pundi X to Enable Retail Bitcoin Payments in Panama

Chainzilla and Pundi X to Enable Retail Bitcoin Payments in Panama

Cryptocurrency startup Pundi X announced that its point-of-sale payment gateway (XPOS) will soon be launched in Panama and its surrounding regions. Blockchain development company Chainzilla joined the initiative as a local distributor. Combining cryptocurrency and traditional payments in one terminal On Aug. 14, Cointelegraph in Spanish spoke with Chainzilla CEO, Charles Gonzales, to find out more details. According to Gonzales:  “Recently, Pundi X integrated its module into the Verifone X990. This is an important development because this payment processor is compatible with both cryptocurrency and traditional payments. […] That means that a seller can process crypto payments alongside other Visa and Mastercard payments, it’s all in one device.” As well as acting as the distributor of the XPOS terminals in Panama, Chainzilla will launch tools for merchants to immediately convert their Bitcoin (BTC) and other cryptocurrency payments into the local currency or stablecoins. Opportunities through education The first of the new payment processors will arrive in Panama in two weeks and will be demonstrated by Chainzilla at Revolve Summit for entrepreneurs. Chainzilla will also offer the first blockchain course in the country with the help of Panama’s Chamber of Digital Commerce and Blockchain, along with education startup The Blockchain Space, in October 2019. When asked about the fintech scene in Panama, Gonzales replied:  “The fintech sector is fragmented in Latin America. Each country acts as an island that has its own regulations, which are often different from those of its neighboring countries. This creates difficulties in developing international services. These challenges are difficult and they will take time to resolve but it all starts with education. That’s why we’re focusing on educating the people, companies, and government entities we interact with.” As Cointelegraph reported, it was only last month that Pundi X integrated its crypto payment module into the Verifone device.

QuadrigaCX Users Request Details on How EY Lost 103 Bitcoins

QuadrigaCX Users Request Details on How EY Lost 103 Bitcoins

Users of now-defunct Canadian cryptocurrency exchange QuadrigaCX are requesting further information concerning the recent loss of 103 Bitcoins (BTC) during the funds’ recovery. An unfortunate loss As Cointelegraph reported in February, one of the Big Four accounting firms — EY (formerly branded as Ernst & Young) — was appointed by QuadrigaCX as an independent third party to monitor the proceedings in a creditor protection case. Ey announced at the time that “Quadriga inadvertently transferred 103 Bitcoins valued at approximately $468,675 to Quadriga cold wallets, which the Company is currently unable to access.” Currently, the coins would be worth $1 million. Industry news outlet Coindesk reported on Aug. 16 that — six months after the accident — the auditor has not yet given any insightful information concerning how the loss occurred.  According to the article, all the information disclosed came from the report released by EY in February, in which the company declares that the loss was caused by a platform setting error. QuadrigaCX creditor Ali Mousavi told the outlet: “This sounds like gross negligence to us and many of us want to hold EY accountable for what happened. […] Instead of giving us the details, they [struck] a deal with [law firm Miller Thomson] to keep the details confidential and [are] making it harder for us to hold EY accountable.” Creditors want a different legal firm Creditor Xitong Zou also said that “EY does not seem like they want to explain what happened when that’s the very least they could do” since “it was our money, after all.” He also claims: “A lot of people want [Miller Thomson] replaced. […] Although I don’t think that’s going to happen.” EY has reportedly recovered about $25 million, with a judge awarding $1.6 million in fees and costs to all the firms involved in the case. The auditor also aims to raise another $9 million by selling assets of the exchange’s CEO. As Cointelegraph reported in a dedicated follow-up piece, the crypto community has recently been actively discussing the fate of QuadrigaCX’s 30-year-old founder, Gerald Cotten, who reportedly died in India from a fatal disease in December 2018. Recently, Cointelegraph also recounted the biggest alleged crypto heists.

This ICO Startup Didn’t Die During Crypto Winter. It Has DAI to Thank

This ICO Startup Didn’t Die During Crypto Winter. It Has DAI to Thank

The Takeaway: Monolith turned a $16.9 million ICO into $25 million-worth of assets by riding the bull market of 2017 then taking out DAI loans. This DAI strategy is increasingly common among ethereum-centric startups. MakerDAO and Monolith are now collaborating to connect DeFi loans to a European Visa debit card. Ether fans can spend crypto with a Visa debit card because Monolith liquidates designated funds on the back-end, providing the merchant with fiat. Monolith CEO Mel Gelderman told CoinDesk he wants to promote an “ethereum lifestyle,” starting with the way he runs his London-based token startup. From his perspective, that lifestyle is about seeking financial solutions beyond traditional banks. Since Monolith was funded by an initial coin offering (ICO) of TKN tokens that raised $16.9 million from retail investors in May 2017, Gelderman said his team turned the ICO proceeds into roughly $25 million worth of assets through prudent trading and collateralized debt positions (CDPs), using ether as collateral to take loans denominated in dollar-pegged DAI tokens. “We’ve started to use the MakerDAO platform to hedge instead of selling our ether,” Gelderman said. “We’re deploying the economy itself to get [our goals].” While a slew of ICO-funded startups ran out of steam in 2018 when the price of ether crashed, Monolith’s strategy provided the startup with plenty of runway. The startup’s current assets include 80,000 ether (about $14.6 million) and a $10 million treasury of both 16 million TKN and approximately $3 million in fiat holdings. Lately, Monolith stopped trading and started collateralizing ether for DAI loans instead. And Gelderman is hardly the only entrepreneur taking this road. Treasury management trend MakerDAO business development representative Gustav Arentoft told CoinDesk he’s spoken with five startups, such as Axie Infinity and Balance, that have used DAI loans to help pay for office space and salaries. Beyond MakerDAO CDPs, he’s also known startups that utilize similar loans from lending firms like Compound, which can earn 11 percent interest according to LoanScan.io. This buoys the broader system, at least for now, as people pay money back into these DAI loans rather than strictly liquidating DAI for fiat. “There’s a lot of velocity of funds going back and forth,” Arentoft said. He added that smart-contract-fueled services like Compound loans and Monolith wallets carry significant risk,…

Price Analysis 17/08: BTC, ETH, XRP, BCH, LTC, BNB, EOS, BSV, XMR, XLM

Price Analysis 17/08: BTC, ETH, XRP, BCH, LTC, BNB, EOS, BSV, XMR, XLM

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision. Market data is provided by the HitBTC exchange. The global amount of debt with negative yields ballooned up to $15 trillion, according to Deutsche Bank. Though yields in the United States are still in the green, President Donald Trump has been pressing the Fed to cut rates aggressively. If the US also joins the negative yield bandwagon, cryptocurrencies are likely to surge.  Coinbase CEO Brian Armstrong said that institutional investors are taking a great interest in cryptocurrencies. According to him, $200–$400 million in crypto deposits are made every week. This is only a very small portion of the institutional money, but if global geopolitical issues and currency wars escalate, we expect a greater inflow down the line.  Fundstrat Global Advisors’ Tom Lee believes that Bitcoin (BTC) “is just resting,” and potentially could make a dash toward new highs by the end of 2019. Bitcoin’s uncorrelated nature to equities and bonds nature makes it an attractive bet for anyone who wants to hedge their portfolio. So, should traders buy the current dip or will prices fall further? Let’s analyze the charts. BTC/USD Bitcoin (BTC) bounced back from $9,517.57 on Aug. 15, which is a positive sign. It shows that bulls are keen to buy on dips closer to strong support. While aggressive bulls might have purchased the first dip, it would be interesting to see whether the rebound withstands or fizzles out. If the BTC/USD pair does not scale above both moving averages within the next couple of days, we might see another dip to $9,080. Repeated dips to a support level weaken it. If this level cracks, the next level to watch on the downside is $7,451.63. Such a move will dampen sentiment and might delay the next leg of the upward movement. However, if the next dip to $9,080 will be aggressively bought, we might suggest long positions once again because it will offer a low-risk buying opportunity. The first target on the upside is $12,000, above which a retest of the yearly high is likely to…

How Coinbase Quietly Became the World’s Biggest Bitcoin Bank

How Coinbase Quietly Became the World’s Biggest Bitcoin Bank

On August 15, the San Francisco-based digital currency exchange Coinbase announced that it had acquired the cryptocurrency custody service Xapo’s institutional branch. The business move puts Coinbase in the limelight, making it the largest custodial service for digital assets worldwide, with more than $7 billion under custody. Also Read: Hong Kong Protest Leader Hopes to Incite Run on Chinese Banks Coinbase Acquires Xapo’s Institutional Arm and Now Commands $7 Billion Worth of Digital Assets As early as 2010, Bitcoin supporters such as Hal Finney predicted that someday most BTC transactions would occur between massive bitcoin-backed banks. Finney believed that if a digital currency like bitcoin was to gain mass adoption, the network would not be able to include every single financial transaction in the world. The renowned cryptographer said that large bitcoin-backed banks would fill the void and “work like banks did before the nationalization of currency.” Fast forward to today, where firms like Coinbase are holding massive amounts of digital assets in custody. On Thursday, the California exchange announced that it had acquired Xapo’s institutional crypto operation and established itself as one of the largest crypto custodians worldwide. Coinbase published a blog post in regard to the acquisition and stated: In just over one year since launch, Coinbase Custody has grown to over $7 billion in Assets Under Custody (AUC) stored on behalf of more than 120 clients in 14 different countries, making it the largest, most globally recognized and most trusted institutional custodian in the world. Coinbase Growth Since 2012: $8 Billion Valuation, $600 Million in Annual Revenue Coinbase has come a long way since Brian Armstrong and Fred Ehrsam started the company back in 2012. That year Coinbase allowed users to buy and sell BTC using a bank transfer and quickly became one of the biggest BTC providers next to Mt. Gox. Throughout 2012 and 2013, investors and venture capitalists started seeing potential in Armstrong and Ehrsam’s company and began to invest. The founders participated in a Y Combinator startup incubator, received $5 million from Fred Wilson in May 2013, and $25 million from Andreessen Horowitz, Union Square Ventures (USV), and Ribbit Capital in December 2013. By 2014, Coinbase users grew to more than one million accounts and the assets under the…

Biggest Crypto Hedge Funds and What They Tell About the Market

Biggest Crypto Hedge Funds and What They Tell About the Market

The total market cap for all cryptocurrencies stands at $293 billion, and while much of this value has been generated by individual traders buying and selling their own private stashes of crypto, it’s also largely the result of big investment funds. These are companies that have crypto assets under management worth as much as $1 billion or upward, with most of them qualifying as the whales the cryptocurrency community often talks about after every market movement. Yet, aside from simply trading Bitcoin, Ether or many other cryptocurrencies, funds also often invest venture capital (VC) in blockchain — and crypto-related startups. This makes them doubly important for the growth of the cryptocurrency industry, given that they support not only the currencies of the future, but also the platforms and companies that will harness these currencies to build entirely new financial ecosystems. That said, most of funds have been backed by traditional venture capital, such as Andreessen Horowitz and Sequoia Capital. So, even though they are supporting the emergence of the new crypto economy, it will be one that will have strong, foundational links with the financial system — something many in the community think crypto will replace. The top five Obtaining reliable, standardized data on the assets under management of each major crypto fund is very difficult, if not impossible. Accordingly, this top five doesn’t claim to be completely authoritative, given that it gleans available data from a variety of sources published at a variety of times. Nonetheless, it provides a fairly robust account of the five firms that are most likely the biggest funds operating in crypto today, in terms of digital assets under management and investments in crypto-related startups. Digital Currency Group/Grayscale Investments Digital Currency Group was founded in 2015 by Barry Silbert, who had previously invested in such early cryptocurrency companies as Coinbase, Ripple and BitPay. It already has invested in nearly 130 crypto-related projects, with the average size of seed rounds it was involved in between 2016 and 2018 being $3.24 million. Given that it has more investments than pretty much every other fund in the industry, it will be no surprise to hear that it has backed some of the most well-known crypto projects and companies, including Circle, Chainalysis, Blockchain, Shapeshift, Parity, Ledger, Luno, Kraken,…

These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

Summa co-founder James Prestwich wants to bridge the great divide: bitcoin vs. ethereum. Now his firm is teaming up with fellow blockchain startup Keep to launch the Cross-Chain Working Group, which aims to create a protocol for using bitcoin on ethereum-based systems. The group hosted its first meeting on Thursday with more than 40 participants, including curious representatives from interoperability protocol Cosmos and Ripple’s investment arm, Xpring. “The goal is to provide a platform for developers, other than those employed by a base chain, who work across chains,” Prestwich told CoinDesk. He said nearly 10 other companies have applied to join this group making tools for developers to work across blockchains, although official membership is yet to be determined. “It’s a wrapper but it’s a fully decentralized wrapper. I’d actually call it a new sidechain mechanism,” Matt Luongo, CEO of Keep’s parent company, Thesis, told CoinDesk. “It gives your a trustless peg, a supply peg, between the two chains.” In short, the bitcoin is deposited with a smart contract that requires multiple signatures to unlock funds. Key holders lock up crypto collateral, like ether, which the depositor can seize if the holders misbehave. In the meantime, the depositor is essentially given a crypto equivalent of ethereum-compatible tokens that represent the bitcoin, called tBTC. As such, the user can conduct ethereum transactions like taking a collateralized debt position with MakerDAO’s stablecoin DAI, yet eventually cash out the results as bitcoin. There is clearly demand for dollar-pegged DAI loans, which are generally liquidated for fiat then paid back to unlock the crypto collateral. According to DeFi Pulse, there is roughly $256 million worth of crypto locked in MakerDAO loans alone. “Now bitcoiners can get loans and get access to DAI,” Luongo said. “All of us being able to get access to the equity of our bitcoin holdings would be pretty powerful.” It takes a village Summa investor Charlie Noyes of Paradigm told CoinDesk tBTC represents “a meaningful improvement over previous efforts to make bitcoin more extensible,” without compromising on bitcoin’s security or decentralized ethos. The working group’s goal is to launch an ethereum-based tester app with access to bitcoin this fall and a tBTCmainnet by Q4. Keep investor Olaf Carlson-Wee of Polychain Capital told CoinDesk he sees…

Post Mortem: A closer look at a password storage issue affecting 3,420 customers

Post Mortem: A closer look at a password storage issue affecting 3,420 customers

We recently began emailing 3,420 Coinbase customers to let them know that a bug on our signup page resulted in some registration details being stored in clear text in our internal web server logs. While we are confident that we’ve fixed the root cause and that the logged information was not improperly accessed, misused, or compromised, we are requiring those customers to change their passwords as a best-practice precaution. Here’s what happened Under a very specific and rare error condition, the registration form on our signup page wouldn’t load correctly, which meant that any attempt to create a new Coinbase account under those conditions would fail. Unfortunately, it also meant that the individual’s name, email address, and proposed password (and state of residence, if in the US) would be sent to our internal logs. If the individual reloaded the page and then submitted the form for a successful registration, their registration information would (correctly) not be logged, and the password would be securely hashed. However, in the 3,420 instances referenced above, the user successfully registered using a password with a hash that matched the one previously logged. Here’s how we responded After we identified and fixed the bug, we traced back all the places where these logs might have ended up. We have an internal logging system hosted in AWS, as well as a small number of log analysis service providers. Access to all of these systems is tightly restricted and audited. A thorough review of access to these logging systems did not reveal any unauthorized access to this data. Additionally, we triggered a password reset for impacted customers, even though a password alone is not sufficient to access a Coinbase account — our device verification emails and mandatory 2FA mechanisms would both have been triggered and blocked any unauthorized login attempts. The technical details The Coinbase front-end web app is built using the React.js framework and leverages React’s Server Side Rendering (SSR) for key pages (including /signup). SSR means that, instead of sending a barebones HTML page and depending on React to fully populate it in the browser, we send a partly rendered page from the server and let React put the finishing touches on in the browser. We use SSR in order to…

Coinbase Reveals Password Glitch Affecting 3,500 Customers

Coinbase Reveals Password Glitch Affecting 3,500 Customers

Crypto exchange Coinbase disclosed a potential vulnerability Friday, announcing that a tiny fraction of its customers’ passwords were stored in plain text on an internal server log. However, the information was not improperly accessed by outside parties, the exchange said. In a post-mortem shared with CoinDesk, Coinbase outlined “a password storage issue,” impacting less than 3,500 customers (out of more than 30 million worldwide) that briefly resulted in personal information, including the passwords, being stored in clear text on internal logging systems. “Under a very specific and rare error condition, the registration form on our signup page wouldn’t load correctly, which meant that any attempt to create a new Coinbase account under those conditions would fail,” the post explained. “Unfortunately, it also meant that the individual’s name, email address, and proposed password (and state of residence, if in the US) would be sent to our internal logs.” In 3,420 instances, the potential customers used the same password on their second signup attempt, which would be successful but would result in their having a password that matches the hashed version on the company’s logs. Those customers were notified by Coinbase via email on Friday. The bug occurred due to Coinbase’s use of React.js server-side rendering on the signup page. Essentially, when a user visits the page to sign up for an account, React helps display the form that needs to be filled out. “Any user attempting to register needs to have JavaScript enabled, and needs to have that JavaScript load correctly,” the post explained, adding: “In virtually all circumstances, both of these things are true, and React handles form validation and submission to the server. However, if a user had JavaScript disabled or their browser received a React.js error when loading, there was enough pre-rendered HTML that a user could fill out and attempt to submit our registration form.” Because the HTML form “was extremely basic,” no “action” or “method” attributes were set. Due to default behaviors, this resulted in some browsers defaulting to “GET,” which encoded form variables as part of the log data. The exchange fixed the issue by switching the default form method to “POST,” to ensure data is no longer logged. While Coinbase searched for other forms “with that problematic behavior,” the…