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EU Budget Amendments Call For Millions in Blockchain Funding

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As many as four blockchain-related amendments, funding various initiatives, could find their way into the European Union’s 2018 budget.

Public documents published yesterday reveal a proposal to use blockchain as a payments rail for an EU-wide free Wi-Fi access project, as well as funding proposals for two working groups dedicated to the tech.

There are actually two amendments related to the idea of using blockchain as part of the “WiFi4EU”, including one from the Group of the Progressive Alliance of Socialists and Democrats political party as well as the Parliamentary Committee on Industry, Research and Energy. The party has proposed allotting €10 million euros to the initiative, whereas the committee has proposed just €1 million euros.

The aim, according to the amendments, is to test “the feasibility and demonstrate the usefulness of using blockchain technology in the interaction between the EU Institutions and the citizens.”

The budget document goes on to explain:

“As a starting point, the project will aim at underpinning the voucher scheme of the Wifi4EU project with blockchain technology, allowing for transparent and traceable payment of EU funds to the private companies, which install the Wifi4EU infrastructure. It will also provide the citizens with the tools to examine the transactions registered in the ledger. It will rely on Open Source software and seek collaboration with Member States for providing blockchain services (also known as Govchains).”

WiFi4EU was first unveiled in May with a budget of €120 million euros, with a goal to offer free connectivity across the bloc over the next three years.

The 2018 budget also includes a proposal to use DLTs as part of humanitarian efforts by the EU to help companies and groups which aid “migrants [and] displaced groups,” among others. CoinDesk previously reported on efforts within the European Parliament to advance this use case.

The €1 million euro investment will also go in part towards companies developing DLT platforms which can aid the union in this effort.

An additonal €1 million euros will go toward the Horizontal Task Force on Distributed Ledger Technology, which aims to analyze how the parliament can effectively utilize DLTs applications. The task force was first announced in 2015, and was originally formed to watch the development of blockchain and DLT platforms.

Dimon Knocks Bitcoin Again: Crackdown Likely on ‘Worthless’ Cryptocurrency

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Jamie Dimon is at it again.

Expanding on his recent criticism of bitcoin, the CEO of JPMorgan Chase bank is again out in the media warning “it will end badly” for the tech. In a fresh round of press interviews, Dimon told CNBC he is concerned about a flood of cryptocurrencies – thanks to bitcoin, ethereum and initial coin offerings (ICOs) – and believes governments will soon crackdown on the phenomenon.

Predicting that the scenario will not be pretty, the CEO reportedly stated that authorities will eventually threaten users with imprisonment, forcing the cryptocurrencies onto a black market.

He told CNBC:

“Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down,”

Speaking to the Economic Times in India, Dimon added some more detail to his thoughts, this time addressing the idea global governments might issue cryptocurrencies.

“We already have digital currencies … you can have digital rupee, so I am not against digital currencies,” he said.

“I am talking about the creation of money and value out of thin air,” he continued. “Governments now look at it like it’s a novelty but the bigger it gets the less of a novelty it becomes.”

The new remarks follow a polarizing statement made by Dimon last week, when he openly called bitcoin a “fraud” and that he would fire any employee for trading it. Notably, Dimon is now being accused of spreading false and misleading information in a market complaint by Blockswater, a company in Sweden.

Malaysia Legalizing Bitcoin? Bank Negara Issuing Guidelines for Crypto

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In the wake of recent and painful Chinese cryptocurrency lockdowns, other countries are beginning to be more open to Bitcoin and others. A recent statement by Malaysia’s Bank Negara governor Tan Sri Muhammad Ibrahim at the Global Symposium on Developing Financial Institutions would indicate that Malaysia may be the next to open its doors to Bitcoin.

The governor addressed a number of different financial sectors but stated clearly that the Bank Negara was working on cryptocurrency guidelines. He said:

“We hope to come out with guidelines on cryptocurrencies before the end of the year: in particular, those relating to anti-money laundering and terrorist financing. We want to ensure that there are clear guidelines for those who want to participate in this sector.”

While not an explicit statement, it is suggesting that the government will legalize Bitcoin as a currency, the statement indicates that, after adding guidelines, the country will allow its citizens to participate in the cryptocurrency market legally.

Malaysia has already been seen as an excellent location for Bitcoin and other cryptocurrencies, and a legalization would create a mass of new investment into the country.


Why Real Estate Industries in Miami and UAE are Embracing Bitcoin

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The Miami real estate industry is gradually embracing Bitcoin as realtors realize the merits and advantages of utilizing the Bitcoin network to facilitate the transfer of large-scale transactions.

For many years, the Bitcoin community and experts within the cryptocurrency sector have debated the fundamental purpose of Bitcoin; whether it should operate more as a store of value or a digital cash system that is capable of processing small transactions with substantially low fees like Visa.

As of current, Bitcoin qualifies as both a store of value and a digital cash system. The integration of the Bitcoin Core development team’s transaction malleability and scaling solution Segregated Witness (SegWit) has significantly reduced Blockchain congestion within the Bitcoin network, decreasing the size of the Bitcoin mempool-the holding area for unconfirmed transactions-and the average Bitcoin block size. More to that, less than three percent of Bitcoin’s transactions are SegWit-enabled. As the ratio of SegWit-enabled transaction increase to over 50 percent, Bitcoin transactions will become even cheaper.

As a result, more merchants, investors and users have started to consider and adopt Bitcoin as a financial and a settlement network that is capable of processing both small and large transactions. Within the real estate industry, the majority of transactions or payments are in the millions. But, to process multi-million dollar transactions, banks require extremely high fees, sometimes up to thousands of dollars per transaction.

Several studies and research papers have revealed that Australian and US banks charge up to $4,000 for a $100,000 transaction. If the payment goes up to a few million dollars, the transaction fee will increase proportionally, potentially to $10,000.

In Bitcoin, such high fees can be avoided. Although transaction fees depend on the size of the transaction, it is possible to send a million dollar transaction with less than $10 with a SegWit-enabled wallet. More importantly, if the Bitcoin Blockchain network is less congested and the mempool size is small, it is possible for senders to attach even smaller fees to process the payment.

For realtors, the usage of Bitcoin significantly eases the process of facilitating large-scale payments. Not only do multi-million dollar bank wire transfers cost thousands of dollars and take weeks to sometimes months of processing time, they also require long paperwork and inefficient process of identity and financial verification.

Thus, Stephan Burke, member of the Master Brokers Forum, a network of real estate professionals in Miami, and realtor associate with Brown Harris Stevens wrote:

“It would seem that an industry like real estate, which already has a high comfort level with technology and the electronic exchange of large sums of money, will be a natural fit for Bitcoin in the coming years. In my opinion, some kind of serious regulation will be needed before Bitcoin hits Main Street. But I do believe that acceptance will happen sooner rather than later. The world changes extremely fast these days.”


ViaBTC Fleeing China’s Shores Amid Ban Fears

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ViaBTC, a large Chinese cryptocurrency exchange announced its plans to open another platform based outside the mainland of China as they face pressure from the government who have cracked down on exchanges and ICOs.

The exchange is urging its customers to withdraw their coins from the platform before Sep. 25 cut off when ViaBTC will stop its domestic service.

There has not been an official time for the relaunch away from mainland China, but ViaBTC obviously sees this as their best option to remain functional as the Chinese government remains hard-nosed to digital currencies.

Enough liquidity to withdraw

“A third of our customers come from outside China, and I believe these overseas users will continue to use the ViaBTC platform, so we can still provide value. We have enough liquidity to support all of our customers’ withdrawals,” Yang Haipo, chief executive of the exchange said.

ViaBTC have heeded orders from Beijing that called for the cease of Bitcoin trading after a small period of speculation following the ICO ban. Other large firms such as BTCChina, OKCoin and Huobi will also close their doors on the Chinese market.

The later two exchanges were given leeway by the Chinese government to operate until the end of October. Upon the closure of them later this year, however, the Chinese Bitcoin exchange market will officially be terminated.

Affecting the global market

There is no mistaking that the news from China has caused a huge ripple in the market.

Bitcoin prices have soared over the past 12 months, jumping from about $595 to an all-time high of $4,950 on Sep. 1. Since China announced its ICO ban and ordered the closure of exchange platforms, Bitcoin prices have plunged, trading at about $3,663 towards the end of this week.

This hardline stance from one of the bigger Bitcoin trading, mining and using countries has seen much of the exuberance around the recent boom lessen as many other countries wait and see what the future holds.


Bitcoin Mining Farms Invited to Russian Leningrad Region

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Alexander Drozdenko, governor of the Leningrad region in Russia, issued a general invitation to miners to use land in the region for mining farms, per 47news.ru. He has offered to utilize the Leningrad Nuclear Power Plant (LNPP) as a space for new cryptocurrency mining.

The announcement came as part of the third annual small and medium-sized business (SMEs) forum, called Energy of Opportunities.  More than 600 business owners and national representatives were present. The governor said:

“For the production of Bitcoins, first of all, large areas for processing and cheap electric power are required. As you know, the construction of LNPP-2 is being completed in Sosnovy Bor, and large areas of the first nuclear power plant are being liberated. The liberated facility of Leningrad NPP can be used as a technopark designed for cheap energy.”

The statements reflect a growing sentiment among the Russian government of adopting cryptocurrency as a means of national growth. Recent announcements of partnership with Ethereum, as well as opening of potential locations for ICOs show the rising embrace of Blockchain and cryptocurrencies.


This Scammer Has Netted Over $100,000 In Ether

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CCN has uncovered an ICO scammer going around various Slack groups for ICO-funded efforts and scamming them by offering “special rates” on tokens and a “special contract address,” all the transactions of which can be downloaded here or for updated data, from which you’ll have to do your own math, go here.

By the time of writing, Etherscan had picked up on the problem by labeling the address Fake_Phishing58.

The tactic used by this scammer is impersonating developer teams, as shown above, and offering “special rates” for a new token sale. The tactic is called phishing and it’s as old as cryptocurrencies themselves. Once the Ether is sent, it’s too late, and unfortunately, if people followed the directions they’re unlikely to get their Ether returned. We didn’t even look at the additional addresses used.

One wonders who is really responsible here. Is it the scammer, who is just doing what scammers do? Is it the consumer, who should know better? Is it the real developer teams, who should inform the consumers of what’s going down? 0X project, shown above, has not mentioned the scammer in their Twitter feed nor their blog.

The real problem is that with each successive scam, people get the impression that it is more legitimate if they are not forewarned. For instance, the alternative Ethereum block explorer Etherchain does not have any sort of scam warning, and there are still others. People in crypto can be impulsive when it comes to investment opportunities, so we hope this warning helps.

Scammers are going to scam. That’s just the way it is, and some things will never change, but hopefully if the reader spreads the word, people will stop sending Ether to this address, at least, and be wary of similar scams in the future.

How Blockchain Technology Will Radically Change Real Estate

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Real estate agents in every country in the world have the same concerns – low-level technology solutions and difficulty in managing contracts. It’s clear that the industry is ready for radical change, and that change will need to come in the short term.

The first sign of coming change is the sudden explosion of the peer to peer model like Airbnb, which allows low-level peer to peer connections, and makes a system that allows users to have more freedom of choice. But Airbnb, as large as it is, is still a tiny blip in the massive $217 trillion global real estate market. Granted, a blip of something massive is still big, but the opportunity for change is clear.

ATLANT is a new Blockchain technology platform designed to change the way real estate transactions take place. The company believes that the peer to peer model is onto a good idea, but that current models can’t take it to the level that the public really wants. The company is creating a decentralized real estate platform where clients have the freedom to buy, sell, and rent property between each other without the intrusion of centralized corporations.

Decentralize it

ATLANT is creating a new platform that will better current peer to peer rental hubs at their own business. The power of a decentralized system is that it eliminates the corporate hub, and, through technology, creates a direct link between clients on either side of a rental agreement.

ATLANT has created a platform where property seekers can find rental properties directly through owners, and can conclude a rental contract without having to leave the ATLANT platform. Without the complexity of a corporate infrastructure, fees for clients will be reduced substantially, and renters and owners are happier. ATLANT’s platform is prepared to disrupt the way rentals are managed without geographical borders.

ATLANT has an ICO starting September 7, and ending on October 7. Those interested will be able to acquire the ATLANT token, called ATL, which will be utilized as the currency for transactions within the platform. Investors in the token can receive up to a 19% bonus for participating in the first 10% of tokens.

Tokenizing the market

Selling property is clearly a more complex process than renting. Whenever an owner wants to sell a property, especially of major value, the property must be placed on the listing service, advertised, and, when a buyer is produced, then sold. The process of transfer after sale also requires extensive time and money.

ATLANT is building a platform that allows owners to tokenize their assets, effectively creating a stock sale, and liquidating that asset through a sale of tokens within the ecosystem. The tokens the owner earns can be exchanged for fiat currency outside the ecosystem, and the buyers can own a percentage stake in the asset.

Brokers, escrows, and closing costs are all virtually eliminated. The process is quick and simple, and the transfer is managed within days rather than months like a traditional sale. Staffed with excellent technological resources, the ATLANT team is more than just another ICO. It is a revolutionary marketplace for exchanging real assets in a smooth way.

Ethereum Price Plunges to Two-Month Low as Market Turns Sour

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The crypto markets took a bearish turn on Wednesday, as 98 of the top 100 cryptocurrencies experienced price decreases. The ethereum price was not immune to this movement, and it has pulled back to a two-month low.

Ethereum Price Plunges to Two-Month Low

The etheruem price was expected to increase leading up to the release of Metropolis, its latest protocol upgrade. The first phase of this upgrade is set to take place in latter September, so there was speculation that the ethereum price would challenge its all-time high if the markets continued their uptrend or at least remained stable.

Unfortunately, this has not been the case. First, traders initiated at sell-off when bitcoin approached $5,000. This corrective wave dropped the ethereum price from $390 to $350. Before the markets could attempt a recovery, the People’s Bank of China (PBoC) ruled that initial coin offerings were illegal. The ensuing flash crash forced the ethereum price below $300, although it quickly recovered to about $330. A few days later, unconfirmed reports that the PBoC was preparing tomove against bitcoin exchanges began to surface. This pushed the ethereum price lower still, this time to $290. When no ban came, the markets began to rally, and ethereum advanced past $310 on September 12.

But this progress was short-lived. Tuesday afternoon, industry leaders including Charlie Lee and Bruce Fenton publicly stated that credible–though unnamed–sources had told them that the PBoC bitcoin exchange ban rumors were true.

ethereum price

ETH Price Chart from Bitfinex

The markets immediately turned sour, and every major cryptocrurrency began to decline. The bitcoin price dropped close to $3,800–it’s lowest point since August. Ethereum’s trajectory was even worse; it fell 12% to about $265. This brings the ethereum price to a two-month low and reduced its market cap to about $25 billion.

ethereum price

ETH Trading Volume Chart from CoinMarketCap

The downturn affected U.S., European, and Chinese exchanges relatively equally; ETH/USD,ETH/EUR, and ETH/CNY are all trading at $261-265. Significantly, however, ethereum is trading at a $10+ premium on Korean exchanges. Bithumb, Coinone, and Korbit all price ETH/KRW above $275.

Dubai Financial Regulator Issues Warning on ICOs

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A financial services regulator in Dubai has issued a warning on initial coin offerings (ICOs) to investors.

The Dubai Financial Services Authority (DFSA), in a new statement, became the latest markets regulator to urge caution to prospective investors, a list which include agencies from Russia, Canada and the US, among others.

One notable difference is that the DFSA said that it “does not currently regulate these types of product offerings” or give licenses to firms within the Dubai International Financial Centre – a special economic zone within Dubai that the DFSA oversees – that offer such products or services.

The agency said:

“The DFSA wishes to highlight that these types of product offerings, and the systems and technology that support them, are complex. They have their own unique risks, which may not be easy to identify or understand; such risks may increase where offerings are made on a cross-border basis. These offerings should be regarded as high-risk investments.”

For now, it’s unclear whether the DFSA will take additional steps to regulate any kind of related activity within the economic zone.

As it stands, its statement only focuses on the risk to investors and does not offer any insight into whether the agency considers some ICO-derived tokens to constitute securities, as other regulators have done.