Why Crypto Bot Trading Is Choking Mass Adoption

Regulators are not going to help the industry, until it helps itself.


To a crypto layperson, hearing about Bitcoin price manipulation via sophisticated yet easy-to-procure trading bots may conjure dime-a-dozen conspiracy theories.

The deeper one delves into the intricacies of this exciting and often treacherous crypto industry though, the more sense such talk makes.

Not only is price manipulation very real and – at a closer glance – quite blatantly obvious, it is yet another major hurdle in the path of regulation, institutional adoption, and by extension: mass adoption.

According to CoinList’s Andy Bromberg, such practices “hurt the market’s reputation and they hurt individual investors”.

How do crypto trading bots work and why do people use them?

Long story short: trading bots are algorithmic auto-traders, capable of opening and closing positions, mimicking the activities of several trading accounts and pulling off a number of other hair-raising stunts that squarely put a nail into the coffin of crypto trading legitimacy, every time they’re executed.

These bots can be programmed to push a number of abusive trading strategies long banned in other markets, such as “wash trading” (the artificial generation of seemingly massive trading volumes, through the simultaneous opening of buy and sell orders) and “spoofing” (the opening of fake orders to generate fake buy- or sell-volumes, thereby pumping or driving down the price of an asset) etc.

The goal of such shenanigans is always to make money at the expense of the ‘honest’ trader.

Price manipulation hurts individuals, and it hurts mass adoption

How price manipulation hurts individual traders is self-explanatory: the mini pump-and-dump schemes resulting from abusive trading activity net profits for the bot users at the expense of regular, well-intentioned traders who believe they’re playing on a level field.

The damage wrought upon the overall direction of the crypto industry by these short-term profit-chasers is truly massive. They de-legitimize the very mechanisms responsible for crypto asset price-discovery, compromising the integrity of the market and prompting regulators to squarely deny ETF proposals, citing these issues.

It’s the reason that the CBOE wouldn’t get anywhere with its ETF proposal – and therefore withdrew it from consideration just minutes before publication of this article.

Can the industry self-regulate and rid itself of this “disease”?

The short answer is yes. The Winklevoss twins are already involved in various efforts and initiativesaimed at self-regulation, and the community as a whole acknowledges the need for some sort of market regulation.

But the real problem is that instead of punishing such activities, exchanges often welcome them as means to pump their own volumes. Indeed, some exchanges are known to readily put bots programmed for abusive trading activity at the disposal of their users.

While all this goes on, crypto enthusiasts over at Reddit entertain themselves by dabbling in a bit of attempted price manipulation of their own: a thread aimed at tricking bots into gleaning positive crypto sentiment off internet chatter was launched, and it took off big time.

Unless of course, the bots upvoted it themselves… oh dear God, Skynet.

Author: James West
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Huobi’s Crypto Derivatives Market Has Already Passed $20 Billion in Trades

Huobi Global CEO Livio Weng

Launched in November, Huobi’s crypto derivatives market is growing at a rapid pace. Fifteen days ago they revealed they had hit $10 billion in total volume, and today they announced they’ve seen $20 billion. In a note provided first to CCN, Huobi describes the timeline of the Derivatives Market in this way:

  • November 21: Huobi DM launches in beta mode with BTC contract trading
  • December 5: Huobi DM launches ETH contract trading
  • December 10: Huobi DM exits beta mode and is integrated with Huobi Global, Huobi’s flagship cryptocurrency exchange. Huobi DM’s daily trading volume reaches $195 million for the first time
  •  December 25: Huobi DM’s 24-hour trading volume breaks through $1 billion for the first time
  • December 28: EOS contract trading added. Reaches $10 billion in cumulative trading volume
  • December 31: Huobi DM’s first-month cumulative trading volume reaches $12 billion
  • January 12: Huobi DM’s total cumulative trading volume breaks through $20 billion

Futures Trading for the Crypto Industry

HBDM.com currently offers derivatives on three major cryptocurrencies: Bitcoin, Ethereum, and EOS. Each has weekly, bi-weekly, and monthly markets. It works like any other derivatives market, except the assets are based on cryptocurrency rather than traditional commodities. According to the trading guide, positions can be closed before they’re filled, similar to other markets.

Huobi Global CEO Livio Weng said:

This reinforces our belief that Huobi DM truly caters to our user’s needs. We’ve been getting positive feedback from our clients on our lack of clawbacks as well as Huobi DM’s capacity to help sophisticated traders manage the risk of spot market fluctuations. I believe this explains our platform’s exploding growth, even in the midst of the ongoing bear market.

The positive response will likely lead to the addition of other markets. As a whole, Huobi is one of the largest crypto exchanges in the world by volume. At the time of writing, Huobi had done over $290 million over the 24-hour period.

All of these metrics come amid an overall down cryptocurrency market. Huobi’s US partner, HBUS, recently took over Huobi.com as part of its strategic marketing push. Huobi volume is representative of its trading pairs. Despite desktop clients and innovative trading platforms, those who capture the most of the crypto market are those with the most listings. This is fundamental to the success of Binance.

Author: P.H. Madore 
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As Dow Jones Rallies, Trading Bots Tell Investors to Short Everything

The Dow Jones Industrial Average is rebounding, but computer trading bots are alerting investors to short everything.

Trading Bots Suspicious of Dow Winning Streak

Kathryn Kaminski (AlphaSimplex)

According to quantitative investment firm AlphaSimplex, algorithmic trading bots suggest shorting three major asset classes: stocks, currencies, and commodities.

“Pretty much any way you run the models, you end up net short a lot of asset classes,” Kathryn Kaminski told the Wall Street Journal. “This is like the chaos bet.”

Kaminski is the chief strategist at AlphaSimplex Group in Massachusetts. She says the last time the trend-following computer trading bots reversed positions so dramatically was in 2007 and 2008.

According to Kaminski, the algo trading bots have moved from holding long positions in stocks, currencies, and commodities in the third quarter of 2017 to shorting them by 2019.

In other words, the bots are betting that those asset classes will drop, signaling a potential sell-off.

Mathematical Models Not Infallible

However, the trading positions of the bots were assessed based on bearish economic data from late-2018.

At the time, the stock market was roiled by escalating US trade wars with China, as well as the Federal Reserve’s fourth rate hike in 2018.

While many analysts believe algo trading is the wave of the future, others say quantitative analysis has its limits. They note that mathematical models cannot always predict where the markets will move.

“The story has been sold almost like a 2008 protection trade,” says Chris Solarz, a managing director at Cliffwater LLC. “But it’s not necessarily true that they will offset the next crisis, because we don’t know what that’s going to look like.”

Jamie Dimon: Chill Out, No Recession Ahead

Meanwhile, many on Wall Street believe the market plunge in late-2018 was an overreaction, and that the mass sell-off is over.

The Dow Jones closed Wednesday (Jan. 9) at 23,878, up 91 points, posting a four-session winning streak.

The Dow Jones is rallying after being decimated in late December 2018. (Yahoo Finance)

JP Morgan CEO Jamie Dimon says the media-hyped anxiety about an impending global recession is overblown. Dimon insists there is no recession on the horizon, as CCN reported.

The billionaire banker says everyone needs to take a chill pill and calm down. The global economy may be in a “slowdown,” but a recession is not around the corner, he says.

It’s very possible we have a slowdown. People [should] take a deep breath.  It’s not like we’re going into a global recession.

Meanwhile, investment managers like hedge funder Bill Miller say an uncertain stock market could be good news for bitcoin investors.

“Bitcoin basically has no statistical correlation with stocks or bonds, which makes it an excellent diversifier,” Miller says.

Author: Samantha Chang
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Coinbase Opens Up To Altcoins, Launches Crypto-To-Crypto Trading

Coinbase Surprises Users With Monday’s “12 Days Of [Christmas]” Feature


Last Monday, Coinbase, the world’s most valuable crypto company, revealed that it would be launching a “12 Days of Coinbase” initiative, an obvious reference to the age-old holiday song of a similar title. In an announcement pertaining to this program, the San Francisco-headquartered platform divulged that 12 Days was a culmination of its development efforts for 2018.

Keeping this in mind, the firm explained that it would make one pertinent announcement each day, whether it be a new feature, company program, or anything in between. Just one week after the launch of this holiday-inspired initiative, on day 8, the upstart valued at $8 billion has arguably released the most exciting feature of 12 Days so far.

At noon on December 17th, Coinbase took to its Twitter page to unveil a feature that its retail users have been clamoring for since Ethereum (ETH) added to the multinational platform. Per a blog post released in tandem with Coinbase’s tweet, this feature, dubbed “Convert.” will allow users to trade one cryptocurrency to another on the firm’s consumer-focused offering.

Convert will allow traders to issue crypto-to-crypto instantaneously, and purportedly at a “lower than if done via two separate transactions.” The startup will be charging a targeted spread of 1%, but the fee incurred may vary, specifically due to “market fluctuations.” This feature will be “gradually” rolled out to Coinbase’s clients in the 34 countries that have access to “native payment access.”

In closing, the firm maintained that this newest feature is part of Coinbase’s mission to build a open financial system for the world.

Coinbase Opening Up To Altcoins 

This move only underscores Coinbase’s newfound affection for altcoins, which has shocked the industry at large, as formerly, the startup expressed copious amounts of hesitance towards listing non-Bitcoin digital assets. Still, the fact of the matter is that amid 2018’s bear market, the American juggernaut likely weighed its options, and decided to move its business in a unique direction.

Per previous reports published in September, Dan Romero, Coinbase’s general manager, took to CNBC’s “Fast Money” segment to discuss the matter. Romero, who has quickly risen to the top of the startup’s pecking order, explained Coinbase’s vision for its altcoin-friendly plan:

Ultimately, crypto is a global phenomenon. You have software developers and entrepreneurs around the world building products on top of crypto, and it’s unlocking a lot of use cases, particularly in emerging markets. I think we need to shift as a company to a more global perspective.

Just months after this revelation, the platform has remained true to its word, listing an array of altcoins, some well-known, others not so much, in rapid succession. At the time of writing, Pro, the startup’s testing ground for altcoin support, currently lists the “Coinbase Five” (BTC, BCH, ETH, LTC, and ETC), ZCash (ZEC), 0x (ZRX), BAT, Decentraland (MANA), LOOM, Civic (CVC), and district0x (DNT).

The startup has also expressed that it intends to “explore” offering support for an extensive list of altcoins, namely Stellar Lumens (XLM), XRP, Cardano, NEO, and Tezos (XTZ). Seeing that the company has made good on its “exploration” of assets previously, it can be assumed that the tokens on the list, partially conveyed above, will be added in due time.

Author: Nick Chong
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Cryptocurrency Exchanges Have a Bot Problem

On Tuesday, Oct. 2, the WSJ released a report claiming that trading bots, a popular tool for both cryptocurrency and fiat investors, could be at the heart of the crypto market’s infamous volatility.

Bots are commonly used, and you can buy them yourself online or create them if you have the know-how. The problem, the WSJ report contends, is regulation.

More oversight needed to combat fraud, says report

The lack of or irregular regulation of cryptocurrency exchanges is an oft-cited reason for cryptocurrency’s lack of mainstream acceptance, and the leeriness of even savvy investors to take the plunge. Companies like Coinbase and Bakkt are definitely stepping up to help solve this problem—Bakkt is an arm of Intercontinental Exchange—but it does still exist. The WSJ claims:

“While established markets like the New York Stock Exchange monitor for illegal trading and punish rule-breakers, crypto exchanges vary widely in their surveillance efforts. Most crypto exchanges are regulated lightly, if at all. The result is that crypto bots can be used to execute abusive strategies on an industrial scale.”

When New York State Attorney General (AG) Barbara Underwood’s office released its Virtual Markets Integrity Initiative Report, it echoes these concerns. The report gathered information by sending letters to several cryptocurrency exchanges asking them to voluntarily disclose their practices, and while some did have policies in place to stop abusive practices like users opening multiple accounts, many still do not.


AG Underwood’s report also states that exchanges aren’t required to register with the federal government or the government of the state in which they do business, meaning they aren’t regulated by anyone but the users of the system and the developers of the exchange. This allows bots, says the WSJ, to “execute abusive strategies on an industrial scale.”

A lot of these shady market manipulation moves are already banned on the stock market. These strategies include executing buy and sell orders simultaneously from the same person in an effort to make it look like there’s more activity on a certain currency than there actually is, called “wash trading.”

Other bots are even more subtle. They’re programmed to manipulate price changes by posting sell orders at lower rates than other people, knowing that people watch the market for that kind of price dip as a signal to buy. Then, once someone tries to buy that currency, the bot cancels the sell order, boosting the price of a certain cryptocurrency like Ethereum. A similar tactic in the stock market called “spoofing,” where traders would use fake orders to trick their peers into buying and selling, was outlawed in 2010.

Working to change the system

There are forces working to change this behavior and bring more order to the crypto markets, however. Regulated cryptocurrency exchanges built on the backbone of the current futures trading system are in development. Over 40 state securities regulators have joined Operation Cryptosweep in an effort to crack down on shady investment and trading practices. Just this week, three such scammers were shut down in the state of North Dakota alone.

The U.S. Justice Department and the Commodities Futures Trading Commission (CFTC) are also investigating cryptocurrency manipulation, and the Securities and Exchange Commission (SEC) is helping to crack down on investment scams, sometimes with help from inside the crypto trading industry.

Author: John Bogna
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Crypto Trading 101: An Introduction to Support and Resistance

Are you a crypto trader struggling to find a footing in a volatile crypto market?

If yes, then the first thing you need to master is the art of identifying support and resistance levels.

Imagine bouncing a ball inside your house. There are two barriers that will limit the flight and fall of the ball – your floor and ceiling. In trading, there are similar barriers that limit the movement of price action known as support and resistance.

Such barriers in trading can have long-lasting effects on an asset, since price action rarely forgets its past. If traders regard a certain price level as a great entry or exit point, it will likely continue to act as a barrier for prices until all of their respective needs are satisfied.



For example, buyers will generally continue to buy at a specific price, given the asset is perceived as undervalued, until all of their demand is fully absorbed by the market. So, if buyers engage at X price and the price moves upward only to later return, the same buyers will look to defend their positions at X and potentially add more to their positions.

New buyers will see that price fell no further than X before, so are likely to consider it a safe entry. This concentration of buy pressure will prevent price from falling any further, creating a temporary floor known as support.


On the other hand, if an asset is perceived as overvalued at a certain price level, sellers will be sure to take advantage. Here, those large buyers from before will look to exit their position and take profit. It’s also possible traders will enter “short” positions at this level, given the perceived over-valuation, increasing the market’s sell pressure.

Just like when there was high buy pressure, this concentration of sell pressure will force the price level to act as a barrier, except this time it will act as a ceiling, rather than a floor, known as resistance.

Horizontal Support & Resistance

The most important and easiest to identify support and resistance levels take the shape of horizontal lines as a result a trend being rejected repeatedly at a very similar price point.

Horizontal support or resistance lines can be created by simply “connecting the dots” between trend peaks or valleys as seen in the chart below.

In the upper frame of above chart, sellers of XMR/BTC continually push down price from the 0.00451/BTC area, establishing it as strong resistance. Simply put, traders continued to take advantage of this area of concentrated sell pressure.

In lower the frame, buyers continually held up the price of XLM/USD at $0.17 fortifying it as strong support.

Once again, traders repeatedly took advantage of the level given the chart has told them time and time again price is more likely to bounce than fall through.



So, what happens when these levels are eventually surpassed?

As mentioned earlier, these barriers do eventually break once either the buying or selling efforts have been completely absorbed by the market. When this occurs, a major shift in sentiment can take place – a concept known as polarity.

When the selling behind an established resistance level is fully absorbed, it is no longer perceived as an optimal point to take profit, rather it is viewed as a good entry point for buyers due to the disappearance of sell pressure, as a result turning the resistance level into support.

Conversely, when the buying pressure behind a support level is fully absorbed, it will turn to a resistance level given traders are no longer interested in buying at this price.

It’s important to note that when price breaks through major support it is regarded as bearish development, that is, an asset usually drops further until sellers reach a point of exhaustion. The subsequent rebound due to profit taking or bargain hunting ends up creating a new support level.

Conversely, surpassing resistance is bullish in nature and price tends to follow the breakout until its next resistance level is identified.

The above chart depicts the effect polarity had on the price of XMR/USD once its resistance level of 0.00451/BTC was broken. You can see that what was once established as strong resistance, given it rejected price action on several occasions, became weaker the more it was tested until it could no longer hold down prices.

Price rose emphatically once the resistance was breached due to the large shift in market sentiment that was taking place. Even after prices action cooled off, it fell to the prior resistance left, but this time it held as support – the essence of polarity.


Price trends are expected to take a breather when coming in contact support or resistance lines due to the concentration of buying or selling pressure that awaits. While the levels can act as a barrier to price action for a lengthy period, they don’t last forever as the market will eventually absorb their efforts.

Once this occurs, polarity takes effect and converts the support to resistance and vice-versa.

Long story short, support and resistance levels help identify areas of strong supply and demand. So, identifying major supports and resistances is perceived by many to be the most important aspect of trading.

Here at Dollar Destruction, we endeavor 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!

Author: Sam Ouimet
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Wall Street Demand For Crypto Rises as Exchange Activity Thrives in Bear Market

The interest of Wall Street firms towards opportunities in crypto custody and asset management has continued to increase despite the 80 percent correction the market experienced in 2018.

Sanford C. Bernstein & Co. analysts refuted recent reports about the struggle of cryptocurrency exchanges and stated that digital asset trading platforms have been recording solid volumes, generating large revenues.


The analysts added that the strong performance of cryptocurrency trading platforms in a bear market or a downtrend led the demand for crypto from Wall Street firms to increase.

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms,” the analysts [said].

Will Banks Join the Crypto Sector?

Already, some of the world’s largest banks including Goldman Sachs and JPMorgan have disclosed their ongoing initiatives to serve clients interested in cryptocurrencies as an asset class.

In June, David Solomon, the newly appointed CEO and chairman of Goldman Sachs, said that the bank has been exploring the possibility of providing cryptocurrency-based derivatives. At the time, Solomon acknowledged, for the first time, that Goldman Sachs have been clearing Bitcoin futures on behalf of their clients.

“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too,” Solomon said.

It is possible, given the thriving business models of cryptocurrency exchanges, that Wall Street firms, hedge funds, and investment companies begin facilitating cryptocurrency trades, targeting US markets.

Twitter CEO Jack Dorsey’s Square and major stock brokerage platform Robinhood have been offering cryptocurrency trading services since early 2018, and have continued to express their optimism towards the increasing demand for the crypto market.

Both multi-billion dollar conglomerates have opted to maintain the profit margin of their cryptocurrency ventures as low as possible, most likely to appeal to investors in the cryptocurrency market first knowing that the two companies can monetize their cryptocurrency trading services at their demand.

Two months ago, Robinhood co-CEO Vlad Tenev, which secured a $5.6 billion valuation after the integration of its cryptocurrency business, said that the company is intentionally not making money on its digital asset trading app and will not do so in the foreseeable future.

“We don’t intend to make very much money on it at all for the foreseeable future. We intend to operate it as a breakeven business. The thinking behind that is what we’re really doing is building an ecosystem. Right now the products are investing products, so crypto slots in very nicely alongside the 10,000 plus other instruments that people can trade,” Tenev said.


When Will Wall Street Firms Enter?

Considering the confidence shown by Robinhood and Square in the cryptocurrency market, analysts have suggested that it will be difficult for Wall Street firms to prevent forming a venture related to the cryptocurrency market, as a long-term bet.

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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How An Ancient Stone Money System Works Like Cryptocurrency

Digital currencies, such as Bitcoin, and the blockchain technologies used to record digital transactions on a public ledger may not be so revolutionary.

At least several hundred years ago, islanders on Yap in western Micronesia used principles at the heart of cryptocurrencies to conduct business, says archaeologist Scott Fitzpatrick of the University of Oregon in Eugene.

“Stone money transactions on Yap were the precursor to Bitcoin and blockchain technologies,” Fitzpatrick says. At April’s annual meeting of the Society for American Archaeology in Washington, D.C., he explained the connection between the carved stone disks, some weighing more than a Honda Accord and standing taller than a man, and today’s cyber-tokens floating in digital space.

Based on studies of rock sources and dating of sites on Yap and nearby islands, Fitzpatrick thinks that, before European contact in 1783, inhabitants of Yap sailed about 400 kilometers to other islands in Micronesia to quarry limestone from caves and rock-shelters. Sea voyagers negotiated with local leaders for access to limestone deposits.

Stone carvers went along for the ride and formed stone disks on site. A central hole was cut into each circular chunk of rock so men could run a wooden pole through the opening to hoist the rock. These weighty pieces of currency, called rai, were transported to Yap on rafts.

Arriving back home, travelers presented newly acquired rai to their fellow community members at a public gathering. Everyone heard which individuals or clan groups took ownership of particular disks. Each rai was assigned a value based on size, evenness of shape, stone quality and risks taken on the journey. After being inspected and verified by a local chief, rai were displayed at communal spots, such as ritual dancing grounds.

Ownership of a disk could be transferred, for instance, as a wedding gift, to secure political allies or in exchange for food from residents of nearby islands after a severe storm. These deals also occurred in front of the whole community. No matter who acquired a rai, it stayed in its original location.

Bitcoin and blockchain work in much the same way, Fitzpatrick says. Bitcoin “miners” solve complex mathematical puzzles to release units of currency. Those units are transported and securely stored across the public blockchain ledger. Full transaction histories for each bitcoin are available to all network participants. Bitcoins can be exchanged for goods or services or given away at any time by participants in the digital system.

A comparison of stone money on Yap to blockchain technology “is legitimate,” says anthropological archaeologist Kathryn Sampeck of Illinois State University in Normal. Yap islanders pioneered a public, oral system for securely tracking and exchanging rai. Blockchain does the same by maintaining digital histories and updates about units of cryptocurrency.

Others disagree. Researchers such as anthropologist David Graeber of the London School of Economics and Political Science, who view money as the product of government taxation and debt, don’t think Yap disks qualify as currency. For instance, rai can’t be divided into smaller parts to make purchases or easily carried from place to place.

Digital currencies don’t live up to their name either, the same group argues. Bitcoin and its cousins are unregulated exchange units with wildly fluctuating values. That makes these digital creations unlikely to catch on among consumers and tax collectors, critics predict.

The fate of cryptocurrencies is, for now, cryptic. “Not a whole lot of people buy stuff with Bitcoin and the concept of cryptocurrencies is very abstract,” says anthropological archaeologist Joanne Baron of Bard High School Early College in Newark, N.J. Stone money’s future on Yap is also up in the air, Fitzpatrick says. Although rarely exchanged for anything these days and often abandoned in the jungle, rai are now being rescued and renovated by islanders interested in their past.

Limestone vs. Blockchain

Archaeologist Scott Fitzpatrick and finance professor Stephen McKeon, both of the University of Oregon in Eugene, see parallels between the public, decentralized way in which rai limestone money on the island of Yap was valued and distributed and the modern-day blockchain technology used for Bitcoin and other digital currency transactions.


Rai: Yap residents traveled to nearby islands where limestone was mined and carved into circular rai. At home, the miners described each item’s manufacturing history to the community so that everyone knew a rai’s worth.

Bitcoin: A Bitcoin miner solves a complex mathematical puzzle to release units of the cryptocurrency. Blockchain technology verifies the transaction for all those in the network to see.

Storage (custody)

Rai: By displaying rai in public places, villagers and others could verify the quality and features of each item.

Bitcoin: Sets of bitcoins are held in a digital ledger where network participants can check the accuracy of ownership and value claims.

Peer-to-peer negotiation

Rai: A Yapese group worked out a deal with nearby islanders to quarry certain limestone deposits.

Bitcoin: This process occurs when a Bitcoin miner receives a digital request for Bitcoins.


Rai: After verification and placement in a public place, rai could be exchanged for various goods and services.

Bitcoin: After verification and placement on the blockchain, Bitcoins can be exchanged between owners or given for various goods and services.


Rai: Oral transaction histories for each rai were available to all community members on Yap.

Bitcoin:  Full transaction histories for each Bitcoin are available to all those in a blockchain network.

Here at Dollar Destruction, we endeavor 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!

Author: Bruce Bower
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Uber Co-Founder and E*Trade Alum Launch No-Fee Cryptocurrency Trading

More competition is coming to the commission-free cryptocurrency trading market. Voyager, a startup backed by an Uber co-founder as well as an early investor in the ride-hailing company, revealed plans Wednesday to offer no-fee trades of at least 15 different cryptocurrencies, including Bitcoin, Ethereum and others.

The company will function as a sort of aggregation engine for cryptocurrency prices across more than a dozen trading venues, allowing customers to buy and sell Bitcoin and other digital assets at the best value available among them. By waiving commission fees—the bread and butter of most cryptocurrency trading businesses—Voyager expects to compete with Robinhood, the stock trading app that also currently provides zero-free trading of five cryptocurrencies.

“We saw an opportunity to build a dynamic smart order router that can take advantage of the marketplace and also offer customers no commissions,” Voyager CEO Stephen Ehrlich tells Fortune. In lieu of trading fees, Voyager will make up the difference in revenue “by beating the average price of the coins at the point in time we execute the trade.”

By simultaneously connecting to and showing prices from 10 cryptocurrency exchanges plus three additional market makers—including those based in the U.S. as well as abroad—Voyager believes it can consistently execute buy and sell orders at better prices than customers would often get by just visiting one exchange, such as Coinbase or Binance.

“Sometimes you go to trade on a certain exchange, but there’s no liquidity there,” explains Ehrlich, the former CEO and founder of retail brokerage Lightspeed Financial who also previously ran the professional trading arm of online stock broker E*Trade after Lightspeed acquired it. Ehrlich says he became interested in cryptocurrency about a year ago, and now plans to bring his experience catering to both individual and professional investors in the traditional equity market to the crypto industry.

The startup’s other co-founders include Oscar Salazar, the founding architect and chief technology officer of Uber, who serves as Voyager’s main tech advisor as well as an investor in the company, which has so far raised “”significant capital” from only friends and family, Ehrlich says. Gaspard de Dreuzy, Voyager’s chief product officer, and board chairman Philip Eytan, an early Uber investor, are also co-founders.

Voyager is entering beta testing later this week, and aims to release its no-commission mobile trading app to the public by the end of October. It also plans to offer additional functionality for hedge funds and other institutional investors, as well as cryptocurrency news and analysis features in its mobile app to help regular investors make buying and selling decisions.

While the list of 15 digital currencies Voyager will trade is still being finalized, it will include the lion’s share of the top 25 most valuable cryptos on the market today, as listed by Coinmarketcap.com, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic and others. “If you see it being traded today by some of the most prominent players, we will definitely have those plus some,” says Ehrlich, adding that Voyager is “leaning towards” listing certain other major cryptocurrencies, such as XRP and Stellar Lumens (which are not listed by major U.S. exchanges like Coinbase and Circle), but first must ensure that they can be stored securely.

The rollout of Voyager’s free trading product will be gradual, as it secures the necessary state licenses in the U.S. It currently is approved in a handful of states including California, Massachusetts, Missouri, New Hampshire, and Montana. It also has applications pending with regulators in other states such as New York (where a so-called BitLicense is required for cryptocurrency exchanges to do business), with a goal of operating in at least 40 U.S. states.

While Robinhood currently dominates in no-fee crypto trading, after launching the product earlier this year with ambitions to take on Coinbase as the market leader, Ehrlich believes there’s still room for Voyager to flourish, in part by offering a greater selection of crypto assets as well as additional services to help investors get comfortable trading cryptocurrencies for the first time.

“We don’t think crypto has been adopted yet by the masses in the United States,” he says. “I believe the market space itself is extremely large…We think the opportunity for both retail and institutional is vast, and we want to be part of that, and help the industry grow, and be good citizens to the industry, and help people get more knowledgeable in crypto assets.”


What Are Your Favorite Ways To Trade Crypto or Stocks? Please Feel Free To Comment And Let Us Know

Here at Dollar Destruction, we endeavor 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!

Author: Jen Wieczner
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Exploring Zero Commission Cryptocurrency Trading Platforms

Cryptocurrency exchanges have long been criticized for charging exorbitant trading fees on every single transaction. As a result, the zero commission business model is gaining popularity, as is evident by the rise of new digital exchanges such as Robinhood, COBINHOOD, and now, Change.


New Zero Commission Exchanges

According to a study, only eight percent of Americans have invested in cryptocurrencies. This is in spite of a larger proportion of the population having taken interest in digital currencies. People abandon the idea of investing in the cryptocurrency sector because of a range of factors, including market volatility, high transaction costs, and trading fees associated with cryptocurrency exchanges. Zero commission exchanges are seeking to overcome trading fees as a deterrent to participation in the cryptosphere.

Most recently, on July 18, 2018, Singapore-founded cryptocurrency company, Change, announced the launch of its zero-fee digital currency exchange. The company has developed a mobile application that makes buying and selling digital currency more accessible. At this time, the platform allows its customers to invest in a number of currencies, including Bitcoin, Ether, Ripple, Litecoin, and Tether.

The trading application, named Change Wallet, can presently only be downloaded by European citizens. The slow rollout is likely in place to ensure that the platform complies with laws and regulations specific to certain geographies. Nevertheless, the exchange is rather disruptive, especially when one considers that other companies charge a typical fee of around five percent per transaction.

Zero Commission: The Future?

Change isn’t the only cryptocurrency exchange to offer a zero-fee trading model to its users. The term was first introduced by Robinhood, one of its competitors. Launched by Vlad Tenev and Baiju Bhatt in 2013, the Menlo Park based company revolutionized the traditional equity trading industry and became the first to introduce a zero trading fee business model. Despite critics being skeptical of the company’s business model and cash flow, it has managed to become a market leader with time.

After finding success with its zero trading fee business model in the securities market, the company launchedRobinhood Crypto in February 2018. Given that the strategy was well received by the cryptocurrency community, new exchanges also pivoted to a similar business model. Criticizing other digital currency exchanges, Tenev said that Robinhood Crypto does not seek to make large profits. Instead, the company’s aim is to merely break even.

Robinhood has diversified since its inception and offers its customers a wide variety of investment options. Tenev said of Robinhood, “It’s the only place right now where you can trade crypto, stocks, and options all in one place.” He also expressed the challenges of creating an exchange with such capacities that is also user-friendly, saying,

“For us to construct an experience that feels seamless and natural for customers, that for example want to sell an equity and use the proceeds to buy crypto, seamlessly, that’s been challenging not just from a product and design standpoint, but also infrastructure standpoint. There’s complexity under the hood, and our goal is to make it as seamless as possible in the process and make that complexity go away.”

Likewise, COBINHOOD is a relatively new cryptocurrency exchange that claims to be the first high volume exchange with zero trading fees. The company’s website also states that crypto assets are insured and largely stored in an offline vault. Given the relative frequency of exchange hacks, the extra security measures, along with a policy of 100% transparency and the zero-fee model, are likely contributing to the growing success of this exchange.

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Author: Rahul Nambiampurath
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