Coinbase Goes After Wall Street With New Tools For Investors

Coinbase Inc. became the best-known cryptocurrency exchange in the U.S. by bringing Bitcoin to the masses. Now it’s looking to crack Wall Street.

 The San Francisco-based company is developing several tools to lure institutional investors onto its platform. They include custodial services where investors can store large amounts of digital currencies, as well as enhanced trading capabilities, such as risk management and margin trading, which allows customers to use borrowed money.
While some of the products will be available to everyone, most will focus on institutional clients. One such service, called Coinbase Prime, will offer lending, margin financing and over-the-counter trading.

The custody question — how to securely hold digital coins in an era of rampant hacking — has bedevilled money managers ever since cryptocurrencies emerged as an asset class. Coinbase began outlining efforts to provide a solution in November. Coinbase now tells Bloomberg it’s forging a partnership with Electronic Transaction Clearing Inc., a so-called qualified custodian for securities designated by the U.S. Securities and Exchange Commission.

The regulator requires large investment advisers to keep customer assets at qualified custodians to protect clients from theft or losses. Banks and broker dealers are common examples of such safe houses for securities. However, authorities haven’t offered clear rules around what it means to have custody of crypto-assets.

Coinbase’s new partner, Electronic Transaction Clearing, settled with the SEC in March over an alleged violation of customer-protection requirements and was fined $80,000. The agency accused ETC of improperly parking some securities belonging to customers at a clearing firm in late 2015. The firm didn’t admit or deny wrongdoing.



While Coinbase has said it doesn’t consider tokens on its exchanges to be securities, the regulatory view on that is hazy. The lack of clarity from financial watchdogs could explain why Coinbase hasn’t attracted big names to its custody product. The company said it’s holding more than $20 billion in digital assets, and custodial services will be available to investors with at least $10 million in deposits.

Just three years ago, Coinbase was working out of a one-bedroom apartment, and the startup struggled to keep up with the surge in cryptocurrency interest last year. Problems have persisted. Some 1,500 complaints have been filed by customers on the Consumer Financial Protection Bureau’s website since the start of 2018 over slow trading times, delays in processing transactions, high fees and other issues.

Coinbase now has more than $200 million in funding from backers such as Andreessen Horowitz and the New York Stock Exchange. Coinbase recognizes it’ll need to prove the service is reliable if it hopes to win over hedge funds or Wall Street’s elite, said Adam White, vice president of Coinbase Institutional, a division setup to oversee the Wall Street business.

“We realized there is a very different set of expectations between institutions and individuals,” he said. “We just get one shot, one first impression, and we need to make sure it’s a good one.”

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Julie Verhage & Lily Katz
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The owner of the New York Stock Exchange has been reportedly working on a bitcoin exchange

  • ICE, the owner of the New York Stock Exchange, has been developing an online platform to buy cryptocurrency, a report from The New York Times found. 
  • The trading platform would “allow large investors to buy and hold bitcoin,” the report found. 
  • ICE first entered the crypto market via a crypto data feed, which went live in March.     

Intercontinental Exchange, the parent company of the New York Stock Exchange, has been developing an online platform to buy cryptocurrency, according to a report by The New York Times.

The move, which The New York Times first reported on Monday citing documents and people familiar with the situation, is another example of a traditional Wall Street firm diving into the nascent market for digital coins.

Georgia-based Intercontinental Exchange, or ICE, first entered the market for digital currencies via a cryptocurrency data feed, which went live in March. Notably, Wall Street bank Goldman Sachs said it was working on a cryptocurrency trading desk earlier in April, The New York Times earlier reported. A slew of trading firms have been trading crypto, including Chicago-based HFTs such as DRW and Jump Trading.

As per The New York Times report, the potential crypto platform by ICE would “allow large investors to buy and hold bitcoin.”

The exchange operator, according to the report, has also explored swaps, another financial instrument, which would be linked to bitcoin. To be sure, the plan may not come to fruition. An ICE spokesperson was not available for comment.

Whereas ICE’s exchange competitors — Cboe Global Markets and CME Group — have jumped into the crypto market via bitcoin futures, ICE has focused on data, and adding transparency to the marketplace known for its wild price swings and fraud via its data-feed product.

Nasdaq, which entered into a partnership with crypto-exchange Gemini in April, is also planning on launching a futures market for crypto. Also, Nasdaq’s CEO Adena Friedman said the firm could one day launch a crypto exchange.

Still, if ICE were to follow through on its reported plan, it would be the first established equities exchange operator to launch such a venue in the US.

The venture would potentially have a big leg up over existing crypto-exchange venues which lack the mature market structure of equities exchanges like NYSE and Nasdaq.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Frank Chaparro
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EOS (EOS) Leading the Altcoin Rally to New Highs

EOS (EOS) is currently leading the altcoin rally with an unprecedented zeal and excitement. The price rose all the way from $4 even to surpass its previous high of $18.8, to the surprise of many. It made a new high around $23.5 before correcting. Currently, the price trades around $17. What interests most about EOS is the fact that it is perhaps the only coin that has not only fully recovered from the recent correction but also made a new high! The price action looks extremely bullish on the EOS/BTC chart and eyes further gains with room for a short term correction.

EOS just recently introduced EOSIO Dawn 4.0 which was the big catalyst in pushing its price past the previous all time high. Institutional interest in EOS is also on the rise as a more efficient and scalable Ethereum (ETH) competitor. Their team is also one of the most active on social media and frequently updates their Twitter account. They have also gained some following on Facebook recently. EOS is one of those coins that went into coma after its ICO. It was completely on the sidelines and hence ignored by many analysts and investors. There was a lot of hype around its ICO though and those who participated in the ICO and sold last week would have made a killing.

With Ethereum (ETH) in trouble over its possible status as a “non compliant security”, coins like EOS and Ethereum Classic (ETC) have made impressive gains even while Bitcoin (BTC) was in the red. EOS particularly has a lot going on at the technical side currently and it would not be surprising to see Ethereum (ETH) style gains on EOS during 2018. If Bitcoin rises and stays above $10,000, this would give altcoin investors a lot of confidence. One thing we have seen in 2018 is an astronomical increase in the number of altcoin trades which has also led to a decrease in Bitcoin dominance. Most such investors believe that altcoins have a lot more potential for higher gains compared to Bitcoin (BTC). As such, they only look up to Bitcoin for the general direction of the market. When things look stable for Bitcoin (BTC), money flows into Bitcoin at much faster pace. The same is also true of money going out of altcoins as soon as things start to look bad for Bitcoin.

The recent altcoin rally, led by EOS shows that many cryptocurrencies are due for a bull run against Bitcoin. It usually happens around May-June during which time most altcoins reach new highs.  The current scenario points to a pending rally for most altcoins to rise to new highs just like EOS. Some coins like TRON (TRX) and Stellar (XLM) are already half way there. Normally, this would be happening at a comparatively slower pace but this year also coincides with a major bullish scenario for Bitcoin (BTC) projecting its price at $100,000 and higher. The pace of this year’s altcoin rally also indicates that a 2013 style scenario is very much possible which should yield 10x+ returns on most altcoins.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Fakhan
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The Most Likely Next Coinbase Listing

A Coinbase listing is the crypto equivalent of the Holy Grail for the community behind a token. Aside from the obvious benefits – including an exponential spike in the price and volume for any coin lucky enough to make the grade – Coinbase listings expose tokens to a much wider audience, increasing the long-term prospects of mass adoption.

The purpose of this article is to provide an analytical framework for decision-making. Investing purely on the speculation of a listing on any exchange is very short term focused and may be suited for investors with higher risk tolerances, but a Coinbase listing has five immediate benefits for any coin:

Liquidity: GDAX, the trading app owned by Coinbase for professional crypto traders, is a top 8 exchange globally in terms of volume per day. A listing provides immediate liquidity in a cryptocurrency market that does over $310 billion in volume per day.

Access: Over 85% of GDAX’s volume is on USD pairs. It gives a market opportunity to exchange fiat for cryptocurrency, and Coinbase is arguably considered the most responsible platform to do so. Coinbase has been described as the platform you’d share with your grandmother to get into cryptocurrency for the first time due to their exceptional Ux design. There are few avenues for a green, inexperienced, non-technical investor to buy cryptocurrency for the first time, and Coinbase is often the place they are directed.

Familiarity: Having USD pairs makes it easier for your average investor to conceptually understand their investments. People are more familiar with pricing assets in dollars versus satoshis (the smallest denomination of bitcoin), and therefore they are more comfortable using USD as their baseline. For example, buying Cardano (ADA) at $0.35 USD per coin is conceptually easier to interpret than buying ADA at 4000 satoshis.

Advertising: A listing will inherently attract the attention of all mainstream crypto media outlets. In addition, since Coinbase is generally a new investor’s first interaction with crypto, it gives a new group of crypto investors an introduction to the currency. It’s also a cyclical effect that benefits from word of mouth marketing.

Legitimacy: Coinbase aims to be the most trusted cryptocurrency company in the space according to their Chief Compliance Officer, Mike Lempres. A fundamental component of reaching that goal is compliance, and a listing on Coinbase confirms the integrity of a coin to the public. They’re a trusted entity and it’s expected that they’ve done their due diligence in the process of listing.

Let’s take into consideration four examples that show the short-term influential power that Coinbase has over the market.

    1. Litecoin (LTC): Coinbase added support for LTC on May 3rd, 2017. In the next 5 days LTC jumped approximately 57%.
    2. Bitcoin Cash (BCH): Went up over 300% in one day once it was added to Coinbase. This infamous hour of trading saw BCH priced at $8500 on Coinbase and as low as $3800 on other exchanges, such as Binance.
    3. Ripple (XRP): XRP listing rumours are very common, but the coin still hasn’t been listed. Information surfaced that Ripple offered to pay Coinbase to list their coin and they declined. The latest rumour in early March saw XRP spike almost 20%.

Every Telegram channel and Reddit page has someone arguing that their coin is going to be the next listing on Coinbase, but it’s important as an investor to use an analytical lens when making financial decisions.

There are rumours every day, and with the recent announcements of the launch of Coinbase Ventures, added support for ERC20 tokens, the acquisition of Earn.com, filing Form D paperwork with the SEC to sell regulated securities, and high-profile hires to scale their team, speculation of the next coin listing has been extremely rampant.

Below is a framework that investors could use to educate themselves and empower their own decision-making on what they think the possibilities are for the next Coinbase listing.

These questions contain objective and subjective variables for investors to answer, and different investors may come to different conclusions, but it establishes a structure to avoid the erroneous noise that crypto media is famous for.

The weighting of each criteria can be changed based on personal preferences.

These are the important criteria that an investor needs to ask:

  • Does the coin meet the GDAX framework?
    • Coinbase announced their listing requirements for a coin in Q4 of 2017, but the company still retains full and absolute discretion for listing or delisting any asset, so meeting the requirements is just step 1 of the framework. These requirements include: strong alignment with Coinbase’s mission and values, engineering and product quality, short & long term operating expectations, ability to scale, liquidity, global exchange representation, token demand, and economic incentives to encourage for participating parties.
  • Is the coin considered a security?
    • The asset cannot be classified as a security in accord with US Securities Law. However, Coinbase has filed to become an SEC licensed exchange, and if that does happen I assume they will change their framework to accommodate coins that are classified as securities.
  • Does the asset meet compliance obligations?
    • These obligations include an Anti-Money Laundering Program.
  • Is the coin an ERC20?
    • Coinbase added support for ERC20 tokens in late March. Allocating resources on a task like this suggests that the next listing could likely be an ERC20, but this is not definitive. It’s important to evaluate whether or not the coin has plans to move to their own mainnet in the near future (such as EOS).
  • Does the token reward users for participation?
    • When Coinbase acquired Earn.com, Brian Armstrong, Coinbase’s CEO, tweeted about his interest in investing in platforms that directly rewards users for participation.
  • Are there any Y-Combinator connections?
    • Coinbase is a Y12 alumni and Y-Combinator has a strong alumni network.
  • Are there any employee relationships?
    • Charlie Lee, creator of Litecoin, was the former Director of Engineering at Coinbase. Personal connections to Coinbase are definitely considered to be an added bonus when considering the chance of a listing.
  • Any other considerations?
    • Some other important considerations are geography and the fact that Coinbase announced last month that listings will not merely be according to the market capitalization of a coin, which means it’s likely that coins over a certain threshold all have an equal playing field when evaluating their probability of being listed. There is also no reason that Coinbase only needs to add only 1 asset at a time, and there could potentially be a bundle of ERC20 coins listed.

Based on this framework, the three most probable token listings: 0x (ZRX), Augur (REP) and Quantstamp (QSP).

0x could be the most probable listing. 0x meets the digital asset framework, it has been rumoured that 0x executives have visited the Coinbase office (and their offices are an 8-minute drive from one another in San Francisco), both 0x and Coinbase filed for Form D paperwork with the SEC back-to-back within 2 weeks time, Coinbase could use the 0x protocol to exchange its ERC20 tokens, 0x is an ERC20 token, and they are a top-50 market cap coin.

To top that off, 3 out of 4 of 0x’s advisers listed on their website are ex-Coinbase employees: Fred Ehrsam was a co-founder, Olaf Carlson-Wee was the first hire, and Lina Xie was a project manager.


ICO of the week:
Vanywhere.com:
Working product – ✅
Major player involved – ✅
Experienced team – ✅
Active community and social channels – ✅
Potential of mass adoption – ✅


It may seem strange to list a coin on their platform that could be perceived as a future competitor as Coinbase, but in the announcement of Coinbase Ventures, the company announced that they may “invest in companies that ostensibly look competitive with Coinbase”. Coinbase Ventures investments may not be directly correlated with listings in their exchange, but they also mentioned that they would like to invest in projects that are in everyone’s interest to see the ecosystem innovate by taking a long-term view of the space.

It seems as though Coinbase lists a new coin approximately every 9 months based on the timeline history of listings. With that in mind, one may believe the listing could be soon – but don’t keep your hopes up.

Dan Romero, General Manager of Coinbase, indicated that the company wants to increase its offerings, but the regulatory uncertainty when classifying security and utility tokens is keeping them from rushing into anything. It’s almost certain that no coins will be added until the SEC develops a framework to classify tokens.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Andrew Macdonald
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Coin Picking in 2018: What are the Weaknesses of Some of the Hottest Digital Assets?

The market for both Bitcoin and altcoins is pointing toward a recovery, barring another bout of panic. At this point, newcomers may be more aware that assets do not only appreciate, but go through painful corrections. Still, there are several coins and tokens with increased appeal, which, however, may hold pitfalls.

Bitcoin, possibly Ethereum, and Litecoin, may be considered mainstream enough, and with a different risk profile. But other hot assets deserve a second look, as weaknesses in their technology or adoption may lead to losses.

Here are some of the most hypes digital assets, with their respective weaknesses:

Ripple (XRP): The network relies on a system of servers, which are nothing like miners. Server operators are hardly known in the community, and the project is targeted toward banks. Ripple has no suitable wallet, and either relies on Ledger Nano S, or storage on exchanges. In terms of trading, the market price is severely affected by hype, and the weight of Asian trading is overwhelming.

EOS: Seemingly going against the market, this coin is currently in the stage where investors are preparing for a snapshot coming in May. Afterwards, balances will not be counted toward the main net. There have been talks of concerted market manipulation for EOS, as well as a connection between auction and market prices. There is also the accusation that the EOS token will serve no purpose on the EOS network, except for buying staking rights.

Cardano (ADA): The platform promises a lot, but for now, only its blockchain layer exists, without the complex functionalities promised for the future. Also, ADA is in the spotlight for Western investors, but is still mostly available on Asian exchanges, and the volume on Binance is relatively low. The asset fluctuates in price, and has added 55% in a week in April, getting to $0.24. The ADA asset has a proprietary wallet, but some problems, glitches, and scams with the mobile wallet have discouraged users.

Stellar (XLM): An asset being attractive for its potential for speedy transactions. Stellar is, in fact, the open-source, user-oriented alternative to Ripple. While Stellar has a blockchain, it will also have a series of validators. This is the biggest risk, since the Stellar consensus plans to re-introduce trust and control in a system supposedly trust-less. That is, in the Stellar network, nodes will have a form of collision, or even a form of node cartels, to vote on the correct ledger version. Some believe this is the biggest weakness of the project, which indeed may ensure fast transactions, but defeats the purpose of crypto coins.

IOTA (MIOTA): With the hot promise of the Internet of Things, MIOTA is an in-demand coin. However, the hype has fallen away, and even trading is sporadic. For now, IOTA remains risky, as wallets are uncomfortable, trading is limited to Bitfinex and Binance, and the real-world adoption is in fact years away. IOTA is only used as a means of payment on niche services.

TRON (TRX): The coin is in-demand, for its up and coming main net. In the future, TRX may have a dual-coin structure, and build an entire ecosystem not unlike NEO, or QTUM. However, at the moment, TRX is in its token phase, and its price is led by speculation. Also, the TRON network is still in development, and the project may take years to deliver results, while the price fluctuates and leads new buyers into losses.

Verge (XVG): This is the second wild run for the coin, this time leading only to $0.09. XVG showed it is prone to hype, and while the project is active, it has yet to prove itself as delivering results. Network problems, big promises, as well as speculative greed, make this project potentially very harmful for newcomers, especially buying at a relatively high price, later to see losses.

For the community, almost any digital asset can be said to have faults and be overrated. With the rapid price growth in December, some coins gained prominence way beyond the strength of the project, and another bull rally may cause the same phenomenon. It is best to do your own due diligence, for risk-free handling and trading.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Christine Masters
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What investors should look for in an Initial Coin Offering

An initial coin offering (ICO) is a fundraising method that trades future crypto coins for cryptocurrencies which have an immediate, liquid value. Usually, a percentage of the tokens is sold to ICO participants and a percentage kept for the company’s needs (private investors, etc. Terms differ from one ICO to another). An ICO allows both big and small investors to fund the projects they like. The recent year carried thousands of successful ICO stories. The motivation for the project is obvious. The motivation for the investors of the ICO is that the price of the token would be higher (or much higher) than the token’s price during the ICO.

ICOs are really hot among the crypto investors. Recently, Hdac and Filecoin collected respectively astonishing amounts of $258 and $275 million. The success of an ICO is influenced by many aspects. Investors should bear in mind following key elements discussed in this article.

At this point it is right to mention less successful stories like the Mycelium ICO. Its team members just disappeared after raising the money, and later it was reported they used the funds to pay for their own vacation. The lack of regulation might be one of the reasons it happened. Just days ago, $7 million were stolen as CoinDash’s ICO started. Right before the start of the token sale, their website was hacked and the ICO wallet address was changed to the hacker’s address.

This article will discuss the main keys to pay focus on when evaluating an ICO investment.

* Important warning before we start: ICOs are a high-risk way of fundraising. Never invest anything you can’t completely afford to lose. Keep in mind that due to a lack of regulation, you will have difficulty getting back your lost money in case of any failures.

1 – Team Composition

Find out everything you can about the team, especially the development team and the advisory board. Look up each team member for relevant experience. Google their names. Visit their LinkedIn profiles. Look for famous  names among the advisory board of the project. Find out if the team has any crypto experience and more importantly – in which projects, or ICOs, they were involved with and the impact they had. 

2 – Bitcointalk.org Thread

A good starting point is the project’s announcement (ANN) thread on BitcoinTalk.org, as Bitcointalk is the biggest forum for Bitcoin and crypto related issues. It is strongly recommended that you read the messages carefully. Investor’s concerns will be answered (or may be unanswered) in this thread. It is a bad sign when the developers avoid answering certain questions or aren’t collaborating. Sending devs a personal message to see how responsive they are is also a good idea.

Each message on Bitcointalk contains the rank and activity degree (number of past messages) of the sender. Be aware of newbies and low-ranking writers. Reputation has become very important and significant.

Be aware of experienced writers comments, and also look for negative messages, sometimes it could be a warning sign. Use Select [All] to see all comments in the thread and use CTRL + F (Windows) to search for red flag words like ‘scam’, ‘con’, ‘MLM’. See the relation between the search results and the total number of replies.

3 – Stage of the project and VC investments

Evaluate the stage of the project. Does it only have a whitepaper? A beta version? Is there a launched product with limited functionality? Prefer projects which have “some lines” of working code, however, many ICOs have proven they can become success stories without any code written.

VCs (venture capital) tend to invest and support projects from early stages. Look for this information usually on the main page of the project’s website. It’s likely to be considerable if a well-known crypto VC is involved, like Blockchain Capital or Fenbushi (belongs to Vitalik Buterin – founder of Ethereum).

4 – Community and Media

It is crucial to have a wide open supporting community like a public Slack for all investors. Openness is as crucial in gaining our trust as the Github code. Try to grasp the atmosphere within the community. Look at the size of the community and its activity.

Other sources like Reddit, Twitter or Facebook can be relevant when evaluating the project. Be aware of bounty posts. It is a common practice to launch a bounty thread to reward users for spreading positive information about the project to increase media coverage, or to help out with translations. These bounty threads can stimulate the hype around the project but they are not very objective. On the other hand some investors participate only for some tokens.

5 – What do they need the token for? Is the blockchain necessary?

ICOs mean the creation of a new dedicated token for the project. One of the most important questions each project needs to answer is what is the token for? Why isn’t Bitcoin or Ethereum enough to serve as the project’s token? Yes, many projects just make up a scammy story. Hey, an ICO can’t be an ICO without a dedicated token. The same question needs to be asked regarding the use of the blockchain technology behind the project.

6 – Unlimited / Hard cap

In the early days of crypto ICOs, the difference between open and hard cap didn’t have the same impact as today’s ICOs. An open cap allows investors to send unlimited funding to the project’s ICO wallet. The more coins are circulating, the less unique your tokens become for the trading afterwards – through less demand.

As ICOs become mainstream within crypto land, enormous amounts are collected. Take a look at Bancor, this project raised an astonishing $150 million in just three hours. This resulted in no percentage gain for the investors. Keep that in mind when participating in ICOs with no cap.

On the other hand, you don’t want to be the only one investing in the project. Exchange’s have much less interest in projects that raise very little, which makes it harder to sell these tokens after release.

7 – Token distribution – when and how

Greed can be defined by a high token distribution to the team members, let’s say, more than 50% of the tokens is suspicious. A good project will link its token distribution to the roadmap. Because each phase or milestone of the project requires a certain amount of funding.

Watch for the token distribution stage. Some projects just release their tokens hours after the ICO has ended. Some projects need to develop a beta version before sending out the tokens. If you look at the percentage gain of Etherium (one year between ICO and token distribution, around 500% gain), Augur (1+ years, 1500%) and Decent (8 month, 350%), sometimes this break creates a very positive hype around the project.

8 – Evaluating the Whitepaper

Most typical investors actually don’t read through the whitepaper, even though it contains all the necessary information about the upcoming project and the ICO.

Don’t hesitate to read it, or at least the majority of it. Note the strong and negative aspects and add in some of your own research. In the end, the whitepaper is the silver platter to potential investors. After reading it you should be able to answer a simple question – what kind of value does this project bring to our world? You’ll also learn what you’re investing in.

9 – Quality of the code – Meet Github

If you have a little bit of programming experience, you should be using it here. The quality of a developer can be understood by analyzing some of their code. As a non-techie, it is still possible to evaluate their quality by looking at the consistency of the code. Another good indicator, is the usage of proper commenting. Avoid messy developers. A piece of code reflects the attitude of a developer.

Next, the length of a function is another indicator. A function containing more than 50 lines of code should raise a red flag. Modularity is important and makes the code more readable and maintainable.

Crypto projects tend to have open-source code. This creates trust among the project’s community, encouraging devs from the community to make suggestions or improvements. An open-source project provides the opportunity to look at the commit logs. A commit is essentially developer slang for pushing a piece of code to the Github code repository.

 You can see each commit by clicking on the text saying “366 commits”. This allows you to investigate each change. The “Insights” tab gives you a more general summary of the developers activity. This tab shows a graph with the amount of commits daily. Beneath the graph, you can see the activity of each developer individually. This information is key for investigating the development team. It is even possible to see how popular the project is by looking at the amount of stars it receives.

Ask yourself why the project chose to run on the specific blockchain. Whether it’s on the Bitcoin’s blockchain, Ethereum’s (smart contract), Waves, and more. Recent months have shown the rising popularity among the ERC-20 Ethereum based smart-contract’s ICOs. These tokens can be stored easily on Ether’s based wallets (like MEW – Myetherwallet), sometimes they don’t require exchanges to be traded, and they usually have high liquidity.

10 – The Bottom Line

ICOs will become more and more ‘mainstream’ as a method for raising funds. There will be plenty of projects to choose from, hence it will become even harder to assess these projects.

It is key to investigate and read as much information as possible and write down all the important aspects, positive and negative, before making an investment decision.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Michiel Mulders
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The World’s Biggest Porn Site Now Accepts Cryptocurrency

The adult website Pornhub has of late taken pride in being something of a pioneer. A year ago, it implemented HTTPS encryption, making it safer for users to click without being snooped on. Last fall, it introduced a suite of accessibility features for its blind and visually impaired users. And Tuesday, it began accepting Verge, a privacy-focused cryptocurrency

Pornhub is not by any stretch the first adult site to accept cryptocurrency. Dozens already do, as do mainstream companies like Microsoft, Overstock, and Expedia. But the significance of the move lies less in the marriage of cryptocurrency and pornography than it does in the legitimization of cryptocurrency as tender generally. After all, Pornhub’s not just the largest site of its kind. It’s one of the largest sites on the web, period.

On the Verge

Accepting Verge does have specific value to Pornhub users, of course. Not everyone wants their credit card statement to have mature content on it, even pseudonymously. And while Verge cryptocurrency isn’t an infallible cloak of invisibility, it does incorporate more anonymity tools than traditional tender.

“It’s an anonymous additional form of payment,” says Pornhub vice-president Corey Price. “Offering privacy-focused payment options is something we have been looking to do for a while.”

Pornhub’s move is also notable because it chose to use Verge, a relatively unknown cryptocurrency, over cryptocurrency frontrunners like Bitcoin and Ether. It does, though, offer a few privacy-focused attributes that might make it particularly appealing to Pornhub clientele.

As for the specifics of how Verge offers that anonymity, it’s an open source project that leverages Tor, which hides your IP address by encrypting your traffic and bouncing it through a chain of computers around the world, and I2P, which differs in practice but offers the same broad strokes peer-to-peer routing. And using the so-called Wraith Protocol, Verge users can make either public or private blockchain transactions.

That last bit merits some unpacking, since that’s where the real privacy promises come into play. “Tor and I2P are great. The problem is if you’re using the public blockchain, you are leaving tracks that are completely traceable,” says Matthew Green, a cryptographer at Johns Hopkins University who is also affiliated with another privacy-focused cryptocurrency, Zcash. “Even if you connected through Tor, when you eventually cashed those coins in, people could track you.”

By putting some transactions on so-called stealth addresses, rather than the public blockchain, you can ostensibly cover your tracks. But you also expose yourself to some potential pitfalls.

“This may superficially hide the payment on the blockchain, e.g. you can donate to Wikipedia without being publicly seen on the blockchain to be donating to them,” says Emin Gün Sirer, a computer scientist at Cornell University who focuses on distributed systems. “But typically, what happens next is that the recipient groups transactions, either when organizing their wallet or when paying someone else, so the fact that you donated to Wikipedia becomes public anyway. Worse, there is nothing the sender can do to avoid this outcome.”

Green also notes that transactions on the private blockchain require a certain level of trust. “It could work well,” he says. “I guess you just wouldn’t know until something bad happened.”

Going Legit

Pornhub, along with several other major adult sites, is owned by a Luxembourg-based company called MindGeek; its sister sites Brazzers and Nutaku will accept Verge as well, with more to follow. But both they and their customers might want to brace themselves.

Other companies, after all, have been burned by cryptocurrency before. Microsoft bowed out of bitcoin briefly in January, but reversed course a few days later. Payments startup Stripe began accepting bitcoin in 2015, only to drop it earlier this year, citing extreme volatility. Both moves followed a huge spike and subsequent drop, a pattern all too familiar to bitcoin observers. In December, a single bitcoin was worth nearly $20,000. Today, it’s closer to $8,000.

“Bitcoin has evolved to become better-suited to being an asset than being a means of exchange,” wrote Stripe CEO Tom Karlo at the time, appending a host of reasons for its transactional decline: slow confirmation times, high fees, and that seemingly never-ending roller coaster of value.

Verge, too, has seen a roughly 40 percent swing over the last week. And earlier this month, a vulnerability in its code apparently allowed an attacker to mine as many as 15 million coins, worth about $780,000, in the course of about three hours. The patch the Verge team pushed in response also appears to have had issues of its own.

“Other privacy coins supported stealth addresses already, and any cryptocurrency can already be operated on top of Tor,” says Sirer. “So, overall, Verge never offered a unique set of features not offered elsewhere.”

“There are inherent risks associated,” says Pornhub’s Price. “Nonetheless, we are excited to take this next step to keep current with our community’s payment preferences and offer them this viable alternative.”

And if customers take Pornhub up on the offer, that could help cryptocurrencies in general go more mainstream. “Transactions with crypto are no big deal now,” says Campbell Harvey, an economist at Duke University who studies blockchain technology, citing the big-name retailers who accept bitcoin.

The next step after offering a cryptocurrency payments system, though, is getting people to actually pay in cryptocurrency. “Bitcoin has been accepted, but nobody uses it,” says Johns Hopkins’ Green.

Which is where Pornhub might be able to make the most impact, not because of its content, but because of its scale. It’s the 32nd biggest site on the web, according to Alexa site rankings, putting it just behind Netflix and Twitch. Its customers are likely more motivated than others to seek anonymity online. As long as they’re clear-eyed about the potential downsides of Verge and other cryptocurrencies, they could help the new payment systems in general find a place in transactions, rather than being just an asset to collect.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Brian Barrett
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IMF Chief: Cryptocurrency Could Have ‘Significant’ Impact with Potential ‘Large-Scale Shift Away’ from Government-Issued Fiat

The head of the International Monetary Fund says cryptocurrency could have a “significant” impact on the way we save, invest and pay our bills – and eliminate the need for certain financial intermediaries altogether.

“Banks and other financial institutions will face challenges to their business models, should there be a large-scale shift away from government-issued currencies toward crypto-assets,” says Christine Lagarde in a new blog post.

If the cryptocurrency market remains volatile, Lagarde says banks may also decide its in their best interests to issue their own forms of digital money. Although Lagarde thinks many cryptocurrencies won’t last in the long run, those that do survive have the power to “enable fast and inexpensive financial transactions, while offering some of the convenience of cash.”

Because cryptocurrencies could have a transformational effect on the world economy, Lagarde stresses the need for a global consensus on the new technology.

“What are the implications for financial stability? Our preliminary assessment is that, given their still-small footprint and limited links to the rest of the financial system, crypto-assets do not pose an immediate danger. Even so, regulators should remain vigilant: crypto-assets have the potential to magnify the risks of highly leveraged trading, and to increase the transmission of economic shocks should they become more integrated into mainstream financial products…

Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities. An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”

Lagarde says governments and financial institutions should stay on top of rapid developments in cryptocurrency markets and technology to avoid potential pitfalls in the era of digital currencies. She’s recommending an even-handed approach that aims to guard against risks without stifling innovation.

 


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: DHS
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