Is There a Future for Cryptocurrencies in the Online Casinos?

Anyone who has not been living under a rock for the past couple of years has surely heard other people speaking about blockchains and cryptocurrencies. Not surprising, considering they have completely revolutionized the way we process payments over the internet.

The blockchain technology has made its way into a variety of sectors including the online gambling industry. Some of the leading providers of interactive gambling content have already embraced this new form of currency and enable payments via Bitcoin, Ethereum, and Litecoin. The past couple of years also saw the launch of various online casinos that rely exclusively on cryptocurrencies for their payments. 

How the Blockchain Technology Affects Online Casino Players?

This is no coincidence and here is why. First and foremost, cryptocurrencies have become the epitome of safety. Online gambling operators do take all the necessary precautions to ensure their customers’ information is kept out of harm’s way. Unfortunately, hackers have also upped their skill levels so there is no guarantee players’ sensitive data is completely out of their reach.

This is not the case with blockchains which rely on cryptography to safeguard the data. The technology needs no third parties to act as intermediaries and is decentralized. It is not associated with a particular jurisdiction or financial institution.

Thus, cryptocurrency-based online casinos enable gamblers to retain their full anonymity. This is not the case at traditional betting sites where customers are normally required to send some personal documents for the verification of their accounts.

This not only results in inconvenience for the customers but may also hurt the casinos’ business since most players are just itching to jump right into the betting action. The blockchain technology poses as a solution to this problem since it can greatly simplify the sign-up process or even altogether eliminate it. Some crypto-based casinos have completely done away with registration and allow their new customers to start wagering immediately after they send a Bitcoin to the specified address.

As mentioned on SuperCasinoSites, cryptocurrencies enable faster, easier deposits and withdrawals, eliminating the necessity of providing your personal information in the first place. The only things you need to make a cryptocurrency payment are your name and the details of your crypto wallet. The financial transaction takes place with the help of both public and private keys, which further consolidates security.

Since the blockchain technology is not controlled by any financial institution, payments conducted in this manner are either incredibly cheap or entirely void of additional costs. The same cannot be said about some of the widespread conventional methods of payment, which often involve hefty service fees. Additionally, cryptocurrencies allow for larger sums to be deposited or withdrawn from online casinos.

Since no country’s government controls the blockchains, cryptocurrencies pose as the perfect solution for casino fans from jurisdictions with more restrictive legal and regulatory frameworks on online gambling.

Cryptocurrencies Make Things Easier for Casino Operators Too

As you can see, there are various ways in which players benefit from this new technology but can we say the same about online gambling companies? In fact, we can sense the blockchain technology makes things easier for gambling operators in a variety of ways.

Most payment methods that use fiat currencies allow for chargebacks but this is not the case where cryptocurrencies are concerned. When one deposits with a digital currency, they have to be extra careful – once the transaction goes through, it is impossible to reverse it or demand a reimbursement. This makes the lives of online gambling operators a lot easier because it spares them the hassles that result from having to deal with player disputes.

Also, casinos that rely on cryptocurrency may end up attracting a solid player base because they utilize an open-source algorithm that is referred to as the “provably fair” algorithm. This technology is exclusive to cryptocurrency gambling and greatly increases the levels of transparency at the online casinos that implement it.

It enables online casino players to check and confirm the games they are wagering money on are 100% random and therefore, fair. This way, when a player spots a Bitcoin casino, for example, they can instantly tell it is legit and unbiased. It makes sense this increased level of transparency works to the advantage of up-and-coming cryptocurrency-based casinos because it helps them build their customer base much quicker.

The online casinos using fiat currencies still outnumber those that rely on the blockchain technology. However, judging by the huge number of benefits the latter offers, it is only a matter of time before more and more casino operators start veering off in this new direction. So to answer our initial question – yes, we believe there is definitely a future for cryptocurrencies in online gambling and this future is now.


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Author: Adriana Midrigan
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Signs That China Is Bullish On Cryptocurrency Future

Over the last two or three years, China’s relationship with blockchain technology and cryptocurrencies can be easily regarded as a love-hate one.

However, as of late, there have been numerous reports hinting at the incredible attention the Chinese government towards cryptocurrencies. In fact, there have been numerous reports of a cryptocurrency launched by the Chinese communist government.

Considering China’s economic power, its international prowess, and its immense population, there’s no wonder that such a cryptocurrency could very well surpass Ethereum and even Bitcoin in popularity.

Before we dive deeper into the subject and analyze all the signs that China is bullish on cryptocurrencies, we will discuss China’s past events related to crypto, to the country’s current stance regarding cryptocurrencies and blockchain, as well as previous developments regarding legislative decisions.

Past Legislative Decisions Regarding Cryptos

If you’ve been passionate about crypto for the last two years, you probably remember that one of China’s most controversial legislative decisions regarding cryptocurrencies was to ban ICOs and any activity if any entity is raising virtual currencies.

The Chinese government declared then that the selling and distribution of tokens is an illegal fundraising method and, hence, a form of financial fraud punishable by law. Things didn’t stop here, as the Chinese government also blocked all websites related to crypto trading and ICOs, including foreign platforms. Still, regulatory bodies have been more favorable.

Following these decisions, advertisements for cryptos were also removed from the mainstream media. Back in April 2018, China put a halt to hosted blockchain events as well. So, considering all these aggressive and extreme decisions that display a rather bad stance on blockchain technology and cryptocurrency, it’s surprising that China is, in fact, bullish on blockchain and cryptocurrency developments.

China’s Current Stance On Cryptocurrencies

According to People’s Bank of China (PBOC), cryptocurrency investments (at least uncontrolled ones) can harm the Chinese economy and potentially pose a risk for the Yuan.

In short, the government has made its stance on crypto very clear: it doesn’t want them, and will not tolerate them, especially if they are external and not entirely controlled by the ruling power of China.

Be that as it may, the PBOC also released various statements saying that the research and development of cryptocurrency and blockchain technology is a top priority for China. This means that China’s central bank acknowledges the fact that crypto will replace paper money inevitably and this requires some research in order to take the best possible decision.

Interestingly enough, it is said that the Chinese government has invested and backed up various local crypto projects, such as Xiong’An Global Blockchain Innovation Fund, which supports many blockchain startups. According to several sources, the government offered at least $3 billion to fund emerging blockchain projects.

President Xi Jinping has also made a public televised appearance and called blockchain a “breakthrough” technology.

Why China Might Need Its Own Cryptocurrency

Despite all the bans and the controversial attitude towards blockchains, the national cryptocurrency started to circulate in two Chinese cities (Shenzhen and Guiyang). The national cryptocurrency in China is far from being a secret, as Zhang Yifeng, the chief of science and technology at the Banknote Blockchain Technology Institute admitted on numerous occasions that China is working on it.

The PBOC needs a digital coin in order to bring all cryptocurrencies back under the state control. It’s worth noting that, before the ban, China actually had one of the largest trading volumes of all countries. Not only that, but China also has a big number of crypto enthusiasts and crypto miners, not to mention crypto mining farms.

Ether and Bitcoin (as well as other cryptos) are still used in China to conduct illegal transactions and money laundering operations. The Chinese government wants to introduce its own cryptocurrency to solve these problems and also to make miners switch to mining a government-backed cryptocurrency. With these moves, the Chinese government hopes to reinstate control over all financial operations within the country.

There’s still not much information whether the coin will be ChinaCoin or CryptoYuan, but one thing is for sure: China will join the ranks of Russia and Venezuela who both have the same types of financial aspirations.

One interesting point of view is related to what effect will this cryptocurrency have on the crypto market once it hits mainstream adoption in China. There are those who are afraid that this Chinese cryptocurrency will actually crash the Bitcoin, Ripple, and Ethereum-powered market.

Conclusion

Considering everything that’s been said, it’s safe to say that China is not truly bearish or bullish on cryptocurrencies. The government does indeed accept the inevitability of crypto dominance over other traditional payment systems, but it still wants to retain full control over all transactions within the country.

In fact, China is very bullish on blockchain development and the government seems to have a long-term plan that started with the banning of cryptocurrencies last year. China’s authority finance institutions have announced that cryptocurrency and blockchain development will be a top priority for 2018 and, so far, everything acted out accordingly.

Many crypto experts agree that China will either “break” the crypto market or lead the charge towards a new bull market. It’s important not to forget that China’s influence on the international cryptocurrency market is immense.


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Author: UseTheBitcoin
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SEC Slaps $50,000 Fine on Delaware-Based Crypto Investment Fund

On December 7, 2018, the United States Securities and Exchange Commission (SEC) issued a cease and desist order and a penalty of $50,000 against Delaware-based crypto assets fund firm CoinAlpha Advisors LLC.

SEC Hits Crypto Fund for Violating Securities Law  

According to the filing published on the commission’s website, the SEC charged CoinAlpha Advisors LLC for acting as an unregistered securities dealer. Additionally, the filing highlights that the accused company violated SEC laws by offering securities through interstate commerce.

Reportedly, CoinAlpha LLC was established in July 2017 to act as manager of the investment fund dubbed CoinAlpha Flacon LP. The fund was launched in October 2017 with the sole purpose of investing in digital assets.

From October 2017 to May 2018, the investment fund managed to raise over $600,000 from twenty-two investors spread across multiple U.S. states. As part of the investment, investors gained limited partnership interest in the crypto-focused investment fund. The SEC filing states:

“Through this offering, the investors purchased limited partnership interests in the Fund in exchange for a pro rata share of any profits derived from the Fund’s investment in digital assets.”

The order notes that CoinAlpha filed for a “Notice of Exempt Offering of Securities” a month after it was set up. However, the request for exemption was turned down by the securities regulator citing that the firm was not eligible for such an indemnity.

Additionally, the agency pointed out a number of irregularities in the CoinAlpha’s know-your-customer (KYC) system. The SEC states that the investment fund failed to ensure the status of the accreditation status of its investors.

CoinAlpha Cooperates with the SEC

Notably, CoinAlpha agreed to halt its offering after being contacted by the securities regulator in October 2018. Furthermore, the Delaware-based fund cooperated with SEC to get its website, offering strategy materials, and social media posts audited.

The commission reached an agreement with CoinAlpha by imposing a $50,000 fine and instructing the firm to reimburse all its investors, to which the company has agreed. The filing read:

“Respondent further voluntarily reimbursed all fees it had already collected, surrendered all rights to future management and incentive fees, unwound the Fund, and made payments to ensure that no Fund investor suffered a loss. During the Commission staff’s investigation, Respondent retained a third party who determined that all 22 investors were accredited investors.”

Recently, the SEC has been aggressively pursuing crypto-related firms and individuals. Just a week back, the commission fined American professional boxer Floyd Mayweather Jr. and music producer DJ Khaled for illegally promoting crypto projects. Both celebrities paid a combined penalty of over $750,000.


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Author: Pratik Makadiya
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Microsoft Knocks out IBM for Enterprise Blockchain Crown: Report

Microsoft’s Blockchain-as-a-Service (Baas) platform has taken the top spot in a ranking compiled by market foresight advisory firm ABI Research.

Per the report , Microsoft managed to beat competitors in the ranking owing to the advantage it has on the actual implementation front where a wide range of platform services are offered.

It also helped that Microsoft’s BaaS platform is deeply integrated with its Azure cloud service, which commands the second-largest market share in the public cloud services market globally.

Big Blue

IBM came second after Microsoft, and the two firms were leagues ahead of other vendors such as Oracle, Amazon, Alibaba, Baidu, Cisco, SAP, HPE, Huawei, and Tencent. ABI Research assessed the tech companies based on a wide range of innovation metrics.

“Each vendor was analyzed on innovation metrics such as market penetration, proof of concepts and pilots, and ecosystem support, and implementation metrics such as platform diversity, primary features, developer resources, and integration with their own solutions,” wrote ABI Research in a press release.

Part of the reason for Microsoft’s and IBM’s dominance is the fact that they have been in the blockchain space for longer than most of the other vendors, such as Chinese telecommunications giant Huawei and enterprise software behemoth Oracle.

Huawei launched its BaaS platform last month, while Oracle unveiled its blockchain platform in May.

$7 Billion Market

IBM blockchain

This comes at a time when the BaaS market is expected to balloon to US$7 billion in the future, according to a research analyst at Bank of America, Kash Rangan. As CCN reported in October, Rangan projected that the multi-billion dollar opportunities presented by the expansion would be reaped by marrying blockchain with the current cloud computing infrastructure and enhancing some parts of the Software-as-a-Service (SaaS) platforms.

At the time, Rangan gave the example of Microsoft’s cloud computing platform Azure as a service that stood to benefit by integrating BaaS. Other vendors that Rangan highlighted included Amazon, which he noted was positioned to gain from blockchain technology both as a vendor of cloud services and as an online retailer.

“Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient,” CCN reported Rangan as having written in a client note.

Rangan’s forecast of how much the BaaS market will be worth in the future assumed that 2 percent of servers would be allocated to running blockchain at an annual cost per server of US$5,500.

Some of the tech firms that Rangan listed as likely to be major beneficiaries of the expansion of the BaaS market but were not analyzed by ABI Research when compiling the BaaS platform rankings included VMware and Salesforce.

Images from Shutterstock


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Author: Mark Emem
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CNBC’s Ran Neuner sums up the reasons why Bitcoin is “about to explode”

In a recent flurry of confident tweets, CBNC’s Cryptotrader Ran Neuner has summarised why investors should be “accumulating” cryptocurrencies as soon as possible.

In a tweet from last week, CNBC’s Cryptotrader Ran Neuner summarised the more positive news that the cryptocurrency industry had seen.

He followed the summary with an optimistic claim that investors should be accumulating cryptocurrency before the prices spike.

Included in his tweet was the report that Ivy League University Yale had invested in a multi-million dollar cryptocurrency fund. The news is remarkable as the financial strategies are headed up by David Swensen, a notable groundbreaker in institutional investment. Neuner also made note of the Winklevoss twins’ cryptocurrency trade exchange Gemini gaining insurance coverage. When the news broke, the Cryptotrader remarked at the time that it was “huge news”.

Also included in Neuner’s optimistic tweet is the news that retail brokerage firm TD Ameritrade started backing a cryptocurrency exchange in a “strategic investment“. Finally, Neuner added that the US Securities and Exchange Commission (SEC) had filed for a rule change for the Bitcoin Exchange-Traded fund decisions (ETF).

With these factors, Neuner has expressed that it is “too obvious” that the cryptocurrency markets are going to swell and he advocates to buy into cryptocurrencies sooner rather than later.

Other cryptocurrency figures have expressed similar optimism, such as Coinbase CEO Brian Armstrong, who thinks that the markets are going to see exponential growth.


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Author:  REBECCA LEIGHTON
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While Major Crypto Exchanges Flourish, Minor Platforms Struggle in Bear Market

The world’s largest crypto brokerage Coinbase is reportedly close to finalizing a $500 million funding round at a valuation of $8 billion, and Binance has started to become more active in the investment sector, funding blockchain startups internationally.

While major cryptocurrency exchanges like Coinbase, Binance, and BitMEX are seeing their businesses flourish with lucrative business models and high profit margins, minor exchanges are struggling in the bear market.

This week, the UK’s oldest exchange, Coinfloor, has slashed the number of its employees after recording a decline in its revenues as a consequence of the drop in daily trading volume of major cryptocurrencies and the emergence of many cryptocurrency exchanges in the local market.

Hard to Deal With Competition

As CCN reported, on Sept. 6, Coinbase integrated the British pound sterling into its exchange, officially expanding into the UK cryptocurrency market.

Coinbase entered the local cryptocurrency exchange market of the UK, which has stagnated over the years due to the lack of infrastructure and user demand, by eliminating exchange rates and appealing to local users that have been awaiting a reliable cryptocurrency exchange in the region.

Coinbase UK CEO Zeeshan Feroz told CCN in an interview:

“We have been working to introduce Faster Payments for as long as we’ve been operating in the UK. Customers not only benefit from increased speed, but reduced cost as well. By no longer having to convert funds from Pound Sterling to Euros and vice versa to add and remove funds, there will be no more exchange rates. This will make crypto easily accessible to most people in the UK.”

This week, possibly due to the increase in competition in the UK market fueled by the entrance of Coinbase and, reportedly, Bithumb, Obi Nwosu, chief executive at Coinfloor, announced that it is reducing its employee count in the weeks to come.

The significance of Coinfloor’s cut of its employee count cannot be dismissed, particularly because of the strategic partners and investors the UK based exchange has secured over the years.

TransferWise founder Taavet Hinrikus, venture capital firm Passion Capital, and Adam Knight, a former managing director at Goldman Sachs and Credit Suisse, invested in and supported the exchange since its launch.

Yet, despite the involvement of high profile investors and venture capital firms, Coinfloor has not been able to face stiff competition and is undergoing restructuring.

“Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies,” Coinfloor CEO Obi Nwosu said.

Possibly a Good Sign

Perhaps the establishment of large-scale exchanges and companies in the cryptocurrency sector is beneficial for the long-term growth of the cryptocurrency market, as it allows the strengthening of infrastructure.

In South Korea, for instance, cryptocurrency exchange backed by the country’s biggest commercial banks, Internet conglomerates, and technology corporations including Upbit, Gopax, and Korbit have imposed dominance over the local market throughout the past two years.

The fact that even an exchange in the magnitude of Coinfloor cannot sustain high-cost operations demonstrates that, for startups to compete in the market, they need strong infrastructure and backing from major investors and conglomerates.


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Author: Joseph Young
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Abra Now Lets You Invest in a Cryptocurrency Index Fund Token

Cryptocurrency wallet and exchange Abra have unveiled their collaboration with Bitwise Asset Management, allowing Abra customers to invest in a cryptocurrency token that tracks Bitwise’s large-cap crypto index.

Abra, Asset Manager Collaborate on Cryptocurrency Index Token

Users of the Abra app now have the ability to buy and sell the Bitwise 10 Crypto Index Token (BIT10). BIT10 is a cryptocurrency token based on the Bitwise 10 Large Cap Crypto Index run by Bitwise Asset Management. The BIT10 token enables customers to own tokens whose value tracks an index of 10 different large cap cryptocurrencies. Professionals at Bitwise oversee the index the token is based on, ensuring that the combination of crypto assets is up to specifications.

BIT10 is only available on the Abra app, with each token representing price action based on the above-mentioned index of 10 separate crypto assets. The 10 assets are picked by Bitwise, according to their status as high market cap assets. The chosen assets are managed and adjusted on a monthly basis, so as to provide the most effective combination of criteria.

There is only a $5 minimum investment in the BIT10, with no limitations as far as time periods for buying and selling. The index token provides the public with an accessible way to become involved in cryptocurrency markets, and gain exposure to the price movements of many different significant crypto assets, without the need for time-consuming research and constant portfolio management.

Matched with Simplicity and Accessibility

Source: Abra/Twitter

Pairing BIT10 with the Abra platform may prove to be an optimal combination for gaining further mainstream interest — which the crypto space needs more of at the moment, based on a report showing that only 8% of Americans and 9% of Europeans owned some type of cryptocurrency as of March 2018.

The Abra app is a place where individuals can go to easily buy or trade 28 different cryptocurrencies via 50 different fiat currency options. Abra envisions “an open, global financial system that is easily accessible to everyone.” Abra also utilizes the ability for users to control their own private keys — unlike many cryptocurrency investing apps — giving them added security and control.

Cryptocurrencies are complicated, with much of the public seeing the whole sector as confusing. Abra places importance on simplicity, with a greater likelihood of public involvement if things are clear and straightforward. Abra Founder and CEO Bill Barhydt explained, “We created the BIT10 token to allow greater access to cryptocurrency investing by making the experience simple and accessible.”

If there’s one thing that’s certain, it’s that simplicity helps market growth. Apple, for example, has heartily shown the effectiveness of simplicity time and time again, taking a potentially confusing device like the smartphone, and making it mainstream, achieving a profit share of four times the size of its closest smartphone competitor.


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Uzbekistan Looks to Lure Crypto Exchanges With New Tax Benefits

The Uzbekistan government is welcoming cryptocurrency exchanges to set up shop within the country.

An order issued by president Shavkat Mirziyoev on September 2 gives foreign exchanges a number of benefits to begin operating in the country. The document states that cryptocurrency-related income will not be taxed, licensed exchanges running operations with cryptocurrencies and foreign fiat currencies are not subject to existing foreign currency regulations and crypto exchanges are not subject to the country’s securities and exchanges regulations.

However, foreign entities can only get a license for a cryptocurrency exchange after they open a subsidiary in Uzbekistan.

Further, the terms for getting such a license may be restrictive: an exchange must have an authorized capital of no less than 30,000 times the average minimum salary, which amounts to roughly $700,000; servers must be located in Uzbekistan; exchanges must utilize anti-money laundering procedures for users and they must store users’ transaction and personal data for at least five years.

There are also benefits for miners: the document orders federal and local government officials to provide industrial miners using more than 100 kWh of power with land without requiring an auction (which is normally required to acquire land) on “specially designated territories.”

The move comes months after the government announced a goal to develop new regulations for cryptocurrencies in the country. In February, the government also announced its intention to create a state-funded innovation center for exploring the opportunities of blockchain in the state capital of Tashkent, the news agency Fergana.ru reported.

Editor’s note: Statements in this article have been translated from Russian.


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Author: Anna Baydakova
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80% of Americans are Aware of Bitcoin, Study Reveals

Millennials are more optimistic about the chances of cryptocurrency being widely accepted, and nearly half of who think this would prefer using cryptocurrency over the U.S. dollar, according to a recently conducted consumer survey on awareness of and attitudes about cryptocurrency.

Nearly 80% of Americans (79%) are aware of at least one type of cryptocurrency, according to the study by YouGov Omnibus, a research firm that conducts online nationwide surveys.

Bitcoin leads the field in terms of awareness, with 71% of participants recognizing it by name. The next closest contender, Ethereum, garnered 13% recognition. The survey, which was fielded on Aug. 29 and 30, listed 16 cryptocurrencies: bitcoin, Ethereum, Litecoin, Zcash, Dash, Ripple, Monero, Cardano, Stellar, NEO, EOS, NEM, Dogecoin, Midseason/SafeCoin, Lisk and Storjcoin X.

Cryptocurrency awareness was higher among men than women for nearly all types of cryptocurrencies mentioned. Twenty-seven percent of women were unfamiliar with any cryptocurrency, compared to 16% of men.

More than a third (36%) of all respondents said they believe cryptocurrencies will become widely accepted for legal purchases in the next 10 years. Millennials, more than any age group, were more likely to believe this (44%), compared to 34% of GenXers and 29% of baby boomers.

A nearly equal number (34%) said cryptocurrencies are not likely to be widely accepted in 10 years.

Millennials More Likely To Use Crypto Than Dollar

Among those believing cryptocurrencies will become more accepted, millennials are nearly evenly split between using cryptocurrency in place of U.S. fiat (48%) and not doing so (50%). This makes them the most likely group to use cryptocurrencies in place of the U.S. dollar.

More than a third (36%) of all respondents who think cryptocurrencies will become more accepted said they would be more likely to use a cryptocurrency in place of U.S. fiat. The majority (57%), however, said they would not choose to use cryptocurrency over the U.S. dollar.

Also read: Global blockchain adoption still low, Gartner survey finds

Usage Remains Low

A hefty 87% of those who are aware of bitcoin have not used it in any way. Nearly half (49%) of those who are aware of it said they were glad not to have purchased it and have no plans to do so. Fifteen-percent said they regretted not buying bitcoin at an earlier time, but think that time has passed. People 35 to 54 years of age were more likely to express this sentiment, as 21% of them said they wish they had purchased bitcoin, compared to 11% of those 55 years of age and older.

The perception of cryptocurrency’s use for illicit activity continues to cloud the way many people view it. A quarter of the suvey respondents said they believe cryptocurrencies are more often used for illegal purchases, compared to 17 who think they are more often used for legal purchases and 19% who say they are used both legally and illegally.

Hispanic Americans more often believe cryptocurrencies are used for legal purchases.


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Author: Lester Coleman
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Ethereum Price Falls to 12-Month Low as Altcoins Suffer

Ethereum’s price fell to a 12-month low of $228.8 today, falling below the $255.05 of Sept. 17, 2017, fulfilling expectations of those who have predicted a weakening of support that ICOs have bestowed on the second largest cryptocurrency since early last year.

Source: CCN

Ethereum’s price has been on a roller coaster since it began climbing above the $20 range in March of 2017. The price reached $1,377.72 on Jan. 13, 2018, according to Coinmarketcap.com, riding the cryptocurrency market growth at the time. Some analysts credited a surge to ICOs on the Ethereum blockchain.

Source: Coinmarketcap.com

After January, the price fell, hitting $386.59 on April 7, 2018, then rose to $830.02 on May 5 before falling to its current low. The price began the current year in the upper $200 range, reaching $283.29 on Sept. 10, 2017.

Source: Coinimarketcap.com

Mid-August Rally Unsustained

On Aug. 16, Ethereum moved from $250 to $280 following a 20% drop on Aug. 14 as the crypto market posted a recovery from bitcoin’s drop below the $6,000 mark on Aug. 14. That corrective rally did not continue, however.

The mid-August rally occurred in tandem with $120 million worth of tether tokens, signaling an influx of capital.

Price Fall Wipes Out Market Share Gains

Ethereum’s recent fall has wiped out most of the gains it made in its share of the cryptocurrency market resulting from bitcoin’s decline this year. On June 19, 2018, Ethereum accounted for its largest share ever of the total cryptocurrency market, holding 30.63% of the market to bitcoin’s 37.82%, according to coinmarketcap.com. As of Sept. 5, Ethereum’s share had fallen to 11.48% to bitcoin’s 54.99%.

Arthur Hayes, CEO of BitMEX, postulated in mid-August that Ethereum’s price was being supported by the ICOs that occurred starting in early 2017. Hayes said the ICO investments come from VCs that will dump their Ether in response to the bear market. He predicted Ethereum will fall below $100.

Others analysts have also predicted ICO startups will sell off their Ether.

Crypo Market Struggles

Meanwhile, the overall market struggles, as bitcoin suffered one of its worst days since February, losing over $38 billion in market capitalization.

Will Woo, an analyst who since May of this year expected bitcoin to fall below the $6,000 mark, predicted another market decline before its next rally. He said bitcoin will test $6,000 in the near term, even if it the market rebounds in the meantime.


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Author: Lester Coleman
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