Bit News Live

DeFi carnage, Chef Nomi’s admission, $625K prize for cracking Monero: Hodler’s Digest, Sept. 7–13

Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!

Top Stories This Week

Schiff buys more Bitcoin — But there’s a twist

Crypto skeptic Peter Schiff is probably wishing he hadn’t put a poll on Twitter right now.

On Monday, he explained that his 18-year-old son Spencer had just bought more Bitcoin.

He asked his followers: “Whose advice do you want to follow? A 57-year-old experienced investor/business owner who’s been an investment professional for over 30 years or an 18-year-old college freshman who’s never even had a job.”

Just 18.7% of the 82,906 respondents supported the “experienced professional,” while 81.7% backed “the kid.”

Many people were approving of Spencer’s decision, with Quantum Labs CEO Usman Majeed writing: “Your son will be a multimillionaire at least by the time he’s 57 if he keeps buying Bitcoin.”

Morgan Creek Digital co-founder Anthony Pompliano also thought the father and son double act was a work of genius. He wrote: “Using your son to hedge your gold bet is a great idea. Gold goes up, you benefit. Bitcoin goes up, your son benefits. Clever way to be long [on] both assets without publicly capitulating on gold.”

Winners and Losers

At the end of the week, Bitcoin is at $10,316.65, Ether at $367.77 and XRP at $0.24. The total market cap is at $339,174,021.634.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are IOST, and Flexacoin. The top three altcoin losers of the week are SushiSwap, Celo and Arweave.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“Just convinced @jimcramer to buy Bitcoin. Reply to this tweet with your best meme or GIF to welcome the world’s newest Bitcoiner.”

Anthony Pompliano, Bitcoin bull

“The crypto people, just about the most enjoyable group of people I’ve ever met. They are f—— crazy. They are crazy on social media, they are crazy on Twitter, they have the same f—— personality I do, they are gamblers at heart, they slant, they laugh at themselves, they just want to make money. I will be in crypto. My heart is crypto. But I just gotta figure it out.”

Dave Portnoy, Barstool Sports founder

“History indicates that we may have ample room for higher volatility and gains in the months ahead.”

Kraken report

“We have journalists all over the world who care deeply about this industry and the technology and philosophy of blockchain.”

Jon Rice, Cointelegraph’s new editor-in-chief

“Against my advice my son @SchiffSpencer just bought even more #Bitcoin. Whose advice do you want to follow? A 57-year-old experienced investor/business owner who’s been an investment professional for over 30 years or an 18-year-old college freshman who’s never even had a job.”

Peter Schiff, crypto skeptic

Prediction of the Week

Remember, remember Bitcoin tanks in September: Kraken report

The U.S.-based cryptocurrency exchange Kraken has predicted that September will bring excessively negative returns for Bitcoin.

According to its new report, September is historically Bitcoin’s worst-performing month, with an average return of -7%. And given how BTC has underperformed in its average returns for most months of 2020 so far, this month could be even worse than usual.

Moving away from the short term though, it isn’t all doom and gloom. Kraken said a record share of BTC’s supply has not moved in more than 12 months, and “historically, this dynamic has foreshadowed a new bull market.”

However, Kraken’s crystal ball isn’t necessarily what it’s cracked up to be. The exchange recently predicted that a BTC rally of between 50% and 200% was imminent on Aug. 10 when Bitcoin was trading for between $11,500 and $12,000. (Spoiler alert: nothing happened.)

FUD of the Week

Bank of France: Stablecoins could impact EU financial sovereignty “for decades”

The governor of the Bank of France has warned that Europe cannot afford to lose momentum in tackling the challenges posed by private sector global digital assets. 

François Villeroy de Galhau’s warning came as five EU governments — Germany, France, Italy, Spain and the Netherlands — called for tough action from the European Commission as it drafts regulations for stablecoins.

All of this could be rather bad news for Facebook’s Libra, which has had little luck in persuading politicians, bankers and regulators in the U.S. and Europe that it’s got what it takes to launch a private currency in a way that wouldn’t destabilize the global economy.

Villeroy de Galhau also stressed that the European Central Bank can’t afford to “lag behind on a CBDC.” This could serve as a hint that we may see some more movement from the eurozone fairly soon.

Chinese authorities charge six people over $5.8 billion PlusToken Ponzi scheme

Six of the 109 people recently arrested by Chinese police in connection with the $5.8-billion PlusToken Ponzi scheme have been charged.

According to officials, they are “suspected of organizing and leading criminal pyramid schemes.”

Of the 109 arrested in July, 27 were believed to serve as executives for the scam, while the remaining 82 were described as “key” promoters. 

PlusToken published its white paper in February 2018, claiming to be a South Korean crypto exchange offering interest-bearing accounts generating returns of between 10% and 30% per month in the form of its native token PLUS.

The scam took in more than 200,000 BTC, 789,000 ETH and 26 million EOS from approximately 3 million unsuspecting investors.

Banks failing to identify up to 90% of suspicious crypto transactions

Financial institutions around the world have reported 134,500 suspicious transactions related to virtual currencies over the past two years. But according to CipherTrace, this may just be the tip of the iceberg.

The blockchain forensics firm says many financial institutions have developed inadequate “home-grown” systems for identifying cryptocurrency-related accounts and transactions.

Current strategies result in “many false positives and misses significant, large amounts of funds flows,” its report warns.

Many banks use lists of the names of crypto exchanges to flag transfers associated with cryptocurrency, but CipherTrace estimates that 70% of trading platforms may not be on these lists, meaning up to 90% of actual transaction volume isn’t accounted for.

The problems don’t end here. Many crypto exchanges operate under a business name that differs from their branding, and few financial institutions screen for exchanges outside of the top 100.

Best Cointelegraph Features

DeFi: A shrinking window of opportunity

With regulators unlikely to change old-fashioned rules in favor of the emerging market, DeFi might be burdened under fraud and new portions of restrictions, writes Oleksii Konashevych.

Ethereum 2.0 is coming, unlikely to speed up enterprise DeFi adoption

Ethereum 2.0 is coming this year, and while enterprises won’t use it immediately, Rachel Wolfson says the rise of DeFi will play a significant role for organizations.

Bitcoin price balances at $10,000: Discussing BTC’s next big move

As BTC shows stability above $10,000, what’s next for the world’s biggest cryptocurrency? Joseph Young takes a look at what traders are thinking.


Live Price

powered by Coinlib

Crypto Converter

powered by Coinlib

Your Header Sidebar area is currently empty. Hurry up and add some widgets.

%d bloggers like this: