Officially confirmed: former head of institutional products at Coinbase Adam White will be joining Intercontinental Exchange’s (ICE) forthcoming platform Bakkt
from Cointelegraph.com News https://ift.tt/2pVIiBe Confirmed: Coinbase Veteran Adam White Joins ICE’s Crypto Platform Bakkt
The demise of Tether has been a car crash in slow motion. An unswervable event that has played out over the course of months, it has reached a crescendo in the past 24 hours, with tether slipping significantly from its dollar peg. It is possible, perhaps even probable, that it will regain parity with the U.S. dollar. But by then, the damage may have already been done.
Also read: The Daily: Tether Sheds Its Peg
A cryptocurrency losing 10 percent of its value in a week would not normally be news. But when that cryptocurrency is a supposedly “stable” coin — and one whose very stability is relied on by a huge tranche of the market — its slippage is big news. One small slip for tether can result in a giant leap for other cryptocurrencies; it is no coincidence that BTC’s climb to $7,500 in the past 12 hours, as well as its subsequent decline, was triggered by tether’s instability.
A precis of the events that led to this state of affairs goes as follows:
Which leads us to where we are today, which is a cryptocurrency market that doesn’t know what’s going on. Tether bears are loving the collapse of USDT, other stablecoins are relishing their time to shine, memers are meming, arbers arbing, and BTC is leading the market on a merry dance from the low $6000s to the high sevens.
On cryptocurrency forums, traders shared apocalyptic predictions of what tether’s demise might do for the ecosystem, and whether it would presage Mt Gox 2.0. Hyperbole reigned supreme. “It took almost four years for people to regain some kind of confidence after Gox,” wrote one. “This is far worse than Gox, and will hurt crypto immensely in the eyes of even the bagholders and basic bitches.” They continued:
Without dumb money entering the system, you can’t offload your shitcoins, thus you’ll all be sitting on bags, and the market will become inert. It’s gonna be a bad, bad turn, regardless of what happens.
I hope some Tether person writes up an insider’s description of what is happening behind the scenes right now as the peg fails; I’m sure there are lessons other “stablecoins” can learn.
— Gavin Andresen (@gavinandresen) October 15, 2018
With tether’s card marked, so to speak, cryptocurrency exchanges have sought to expedite the introduction of alternative stablecoins. Today (Oct. 16), Okex went stablecoin crazy, adding TUSD, USDC, GUDC, and PAX. On Binance, meanwhile, TUSD is trading at $1.12 against tether, having reached a high of $1.24 at one stage. At the time of publication, tether was averaging $0.93 across exchanges, but with some marked disparities between platforms. On Binance and Bittrex, for example, where there is a greater choice of stablecoins, tether has fared worse. On Kraken and Bitfinex, on the other hand, traders have little option but to trust in tether.
It's time to reflect on all the people that were telling you that the Tether situation is all FUD and that it's perfectly normal. Countless of people reached out to me in the past week and criticized me for covering what's going on and calling me a conspiracy theorist
— Larry Cermak (@lawmaster) October 15, 2018
Should Bitfinex succeed in restoring its banking arrangements this week, as the exchange has promised, it is conceivable that the move could restore faith in tether, which may regain the $1 peg it has adhered to so faithfully until this week. Whether tether is backed or unbacked, audited or unaudited, its status — from a technical perspective — has not changed in the past seven days. Psychologically, though, everything has changed. Like a cheating spouse, a stablecoin that’s been caught out once will always be suspected of straying again. While the markets will weather this period of uncertainty, for tether there may be no way back. Where tether and Bitfinex go from here is anyone’s guess.
Do you think this is the end for tether, or will the stablecoin recover? Let us know in the comments section below.
Images courtesy of Shutterstock, 4chan and Twitter.
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The post The Fall of Tether and What It Means for the Cryptocurrency Markets appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2yDZMpM The Fall of Tether and What It Means for the Cryptocurrency Markets
Binance will officially launch its fiat-to-crypto branch in Uganda this week, where the national currency will be traded with Bitcoin and Ethereum pairs.
from Cointelegraph.com News https://ift.tt/2QOK56o Binance Launches Its First Fiat-Crypto Exchange in Uganda
The Financial Crimes Enforcement Network has warned U.S financial institutions that the Iranian government might be dodging economic sanctions by using cryptocurrencies. The document highlights challenges arising from peer-to-peer virtual currency exchanges and encourages banks to monitor blockchain ledgers for transactions tied to the country.
Also Read: Church Mining Cryptocurrency to Pay Higher Electricity Rates
The U.S. organization, known as Fincen, issued the warning in an advisory to assist U.S. banks and other financial actors such as cryptocurrency exchanges in identifying “potentially illicit transactions related to the Islamic Republic of Iran.” The document includes a lengthy section relating to crypto, as well as an estimate that “since 2013, Iran’s use of virtual currency includes at least $3.8 million worth of bitcoin-denominated transactions per year.”
Fincen noted that “while the use of virtual currency in Iran is comparatively small, virtual currency is an emerging payment system that may provide potential avenues for individuals and entities to evade sanctions.”
While reports have indicated that the Central Bank of Iran has prohibited domestic financial institutions from touching cryptocurrencies, Fincen stated that “individuals and businesses in Iran can still access virtual currency platforms through … Iran-located, internet-based virtual currency exchanges; U.S.- or other third country-based virtual currency exchanges; and peer-to-peer (P2P) exchangers.”
Fincen said that P2P cryptocurrency exchangers are a significant means through which Iran can bypass economic sanctions. It defined such individuals as people who offer to purchase, sell or otherwise exchange virtual currencies, either face to face or through websites. It added that “P2P exchangers may operate as unregistered foreign (money services businesses) in jurisdictions that prohibit such businesses; where virtual currency is hard to access, such as Iran; or for the purpose of evading the prohibitions or restrictions in place against such businesses or virtual currency exchanges and other similar business in some jurisdictions.”
Fincen also said that U.S financial institutions should remain aware of the “highly dynamic” nature of the global market for cryptocurrencies.
“New virtual currency businesses may incorporate or operate in Iran with little notice or footprint,” it explained. “Institutions should consider reviewing blockchain ledgers for activity that may originate or terminate in Iran.”
Fincen urged institutions to use technology to keep an eye on open blockchains and monitor P2P transactions. Examples of the latter could include “wire transactions from many disparate accounts or locations combined with transfers to or from virtual currency exchanges.”
In addition, the organization reminded institutions and individuals in the U.S. that handle virtual currencies to refer to a list of frequently asked questions on international sanctions that was published by the Office of Foreign Assets Control earlier this year. “Financial institutions and virtual currency providers that have (Bank Secrecy Act) and U.S. sanctions obligations should be aware of and have the appropriate systems to comply with all relevant sanctions requirements and (Anti-Money Laundering/Combating the Financing of Terrorism) obligations,” Fincen said.
Do you think regimes such as Iran will increasingly turn to cryptocurrencies to dodge economic sanctions? Or do you think the concerns outlined in the Fincen document are overblown? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Fincen Claims Iran Using Crypto to Evade Sanctions appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2NHT7jI Fincen Claims Iran Using Crypto to Evade Sanctions
Major cryptocurrencies are seeing solid growth, but “stablecoin” Tether has dropped well below its usual trading price
from Cointelegraph.com News https://ift.tt/2AbPu2a Tether Tanks as Traders ‘Lose Trust,’ Other Cryptos See Price Boost
Sony’s internal partnership with Sony Music Entertainment Japan and Sony Global Education will work on solving rights management falsification through blockchain
from Cointelegraph.com News https://ift.tt/2NFGkhH Sony Develops Blockchain Solution for Rights Management with Internal Partnerships
What kind of a world are we living in when bitcoin and tether, two of the stablest currencies in the cryptosphere, break out at the same time? Bitcoin is headed north while tether has taken a tumble in events that are closely linked. Of course, there’s other news in this edition of The Daily, like an NBA star selling his sneakers for bitcoin, but there’s only one story that’s got everyone talking: the crazy, topsy-turvy tale of tether, the stablecoin that couldn’t keep its peg.
Also read: Report: Barclays Drops Plan for Cryptocurrency Trading Desk
After enduring months of scarcely moving — BTC because it was trapped within a tight range and USDT because that’s its job — both coins have made big moves over the past 12 hours. BTC began to soar around 2 a.m. EST, hitting $7,500 per coin before settling around the $6,900 mark. Tether, meanwhile, began to slide on Bitfinex, flash-crashing to as low as $0.88 after struggling to maintain dollar parity all week.
“Watching tether die,” tweeted constant critic @Bitfinexed, who had likely been waiting for this moment all his life. In the midst of all the drama, Bitfinex issued a clarification, stating that fiat deposits should be re-enabled by Tuesday, Oct. 16. Meanwhile, the Kucoin exchange temporarily stopped USDT deposits and withdrawals due to “wallet system maintenance.” Needless to say, the movements of BTC and USDT are closely correlated, with traders seeking to escape the uncertainty of tether in favor of a safer haven. We’ll have more on this story, and what it means for Bitfinex, Tether and the cryptoconomy as a whole, later today.
too much FUD.
— CZ Binance (@cz_binance) October 15, 2018
A new everyday wallet for storing and sending bitcoin core has been released in beta. Muun is now available on Google Play, with an iOS version to follow soon. “Muun is designed for people who use at least a small portion of their bitcoins. Some use cases are introducing new people to cryptocurrencies, sending money to friends, paying for online services, or getting paid for a remote job,” its developers explain.
In action, the wallet is easy to use, but is short on the sort of features that more advanced users might desire. There’s no ability to paste in wallet addresses, for instance — it only works with a QR code — and users are obliged to register an email address upon signup. For sending and receiving BTC to friends and family, however, Muun looks just the ticket. That said, for a more feature-rich wallet that’s equally user-friendly, and accepts BTC and BCH, the Bitcoin.com Wallet has got you covered.
Brooklyn Nets star Spencer Dinwiddie is big on three things: height, basketball and cryptocurrency. The first two go hand in hand for the 6-foot-5-inch NBA point guard — or hand on rim, rather. Since buying his first bitcoin at $3,000 last year, Dinwiddie’s been hooked. This season his signature K8IROS sneakers, developed in cooperation with a company called Project Dream, will be buyable in bitcoin.
Dinwiddie also had some interesting comments to make about cryptocurrency, and bitcoin adoption in general.
“Blockchain in essence is transparency. So if as humans we’re looking, searching for transparency, we’re gonna get there eventually,” he said. “Now, what does that mean for the price? I don’t know. Is it a $10K bitcoin, $5K, $500K? Nobody knows; I think everyone’s guesstimating. But the tech base in general, if we as a people — all seven-and-a-half or eight billion of us — say we want truth and transparency, it’s the next step.”
What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.
Images courtesy of Shutterstock, Twitter, Blockmodo, and Bleacher Report.
Need to calculate your bitcoin holdings? Check our tools section.
The post The Daily: Tether Sheds Its Peg appeared first on Bitcoin News.
from Bitcoin News https://ift.tt/2OsjsYa The Daily: Tether Sheds Its Peg
IBM’s 89 blockchain patents, or how the company has set an impressive pace to catch for tech giants in the decentralized space
from Cointelegraph.com News https://ift.tt/2yFwgA1 IBM’s Blockchain Patents: From Food-Tracking and Shipping to IoT and Security Solutions
A blockchain-based startup which aims to make crypto payments more prolific has embraced a no funding strategy – launching with an array of features #SPONSORED
from Cointelegraph.com News https://ift.tt/2yFfocz ‘Too Many Disappointing ICOs’. Crypto Payment Startup Launches With ‘No Funding’ Strategy
The chairman of Hong Kong’s securities watchdog — who is about to retire — announces possible regulation for crypto exchanges
from Cointelegraph.com News https://ift.tt/2NJe2mJ Hong Kong’s Security Watchdog to Propose Crypto Regulation, Chairman Says