Sweden Officially Backs a Cryptocurrency, Establishing It As Their Official Coin

It’s finally happened: a major government has just bestowed a huge vote of confidence and legitimacy onto the world of cryptocurrencies. Sweden, in an unprecedented move, just announced that they are officially adopting a certain cryptocurrency as Sweden’s official coin!

The Swedish government just informed us that they have chosen a preferred firm for the purchase and marketing of their new coin – Kryptonex Research Group. The sales of Sweden’s coin officially started on Saturday, May 19th and currently these coins can be bought only from Kryptonex Research Group.

Industry experts weren’t surprised when Kryptonex was chosen by Sweden as their preferred firm for the release of their official coin. They had all seen for their own eyes the cutting edge insight that Kryptonex had brought to the cryptocurrency markets for their clients.

For CryptoCoinHubs, , Kryptonex Research Group is not an unknown company as we’ve received dozens of e-mails from our readers

This is a firm that is widely known as the best in the industry for getting the information that is only available to a select few that lead them to be able to give their clients calls such as the 1734% rise in VEN, or the 540% rise in ETH, or the crazy 3204% increase in EMC2, and the list goes on and on.

The most astonishing part of this news may just be that a Kryptonex representative also informed us that the starting price for the official coin will be only €0.30 CENTS! That’s right, their coin is incredibly inexpensive in comparison to most other coins out there. Bitcoin for example trades at €9,000 at the time of this writing, and Ethereum, trades at around €700.

In fact we were able to get the famed billionaire investor Michael Soros’s thoughts on Sweden’s new coin and this is what he had to say:

Michael Soros states: “Anytime a major corporation announces even a small partnership with an individual cryptocurrency that coin’s value skyrockets. I can’t wait to see what happens when a government officially adopts a crypto. When the name of Sweden’s coin is released many people will become millionaires practically overnight.”

A few of us at CryptoCoinHubs were curious enough to buy a couple coins just to see how everything looks and what the trading fees are like.

It was fairly easy to get the coins, but I will show you the whole process below for those that are interested.

First step was to fill out all the details. As you can see, nothing complicated so far.

Second step, I was taken to a deposit page to fill out my details.

For €250, I received 757 coins at 0.33 cents each. You can see current value of my coins on the same page.

The whole process was simple and I even received a phone call from one of Kryptonex Research Group’s friendly agents, but I didn’t really need any help as the whole process was easy enough.

To my shock literally after about 4 hours of finishing this article I checked my wallet again to see this:

In only 4 hours, the price increased from €0.33 to €0.68. At this point, I was positively surprised. I may either hold onto the coins or flip them for another coin that the people at Kryptonex told me about which they predict will also increase in price by 4 times in less than 48 hours. Their track record speaks for itself, no wonder Sweden chose them.

Kryptonex Research Group was kind enough to give us a 100% accurate coin movement price counter, so everyone can see the increase directly on this page.

OFFICIAL PRICE CURRENTLY
1 COIN = €0.66 CENTS
(Note – price is being updated every 30 minutes)

With a story of this nature news seems to be breaking every so often, we’ll be sure to update the story as needed.

You can find their promo video as well as direct coin sales by clicking on the picture below.

China Ranks Ethereum as the World’s Best Blockchain Network, Bitcoin at #13

On May 17, China’s Ministry of Industry and Information Technology released its public blockchain ratings, ranking various blockchain projects like Ethereum in the global cryptocurrency sector based on three criteria: technology, application, and innovation.

Bitcoin at #13

As shown in the chart below, the Chinese government ranked Ethereum as the world’s best blockchain network at number 1. The top five included Ethereum, Steem, Lisk, NEO, and Komodo, all of which utilize smart contracts to efficiently and securely process information in a decentralized manner.

cnLedger@cnLedger
Replying to @cnLedger

3/ Full list:
1-5: #ETH, #STEEM, #LSK, #NEO, #KMD
6-10: #XLM, #ADA, #IOTA, #XMR, #STRAT
11-15: #QTUM, #BTS, #BTC, #XVG, #WAVES
16-20: #ETC, #XRP, #DASH, #SC, #BCN
21-25:#LTC, #ARK, #ZEC, #NANO, #BCH
26-28: #DCR, #HSR, #XEM

cnLedger@cnLedger

4/ Detailed scores of the first crypto ratings by CCID Research, China’s Ministry of Industry & Information Technology pic.twitter.com/7LiJIWokge

View image on Twitter

The addition of Steem in the top five rankings of the Chinese government’s blockchain network was unexpected by the community because unlike Lisk and NEO, Steem is not a base layer blockchain technology that can be used to create decentralized applications. Steem is a content distribution platform based on the blockchain with a primary purpose of distributing content. Essentially, Steem is like Reddit based on the decentralized blockchain.

Another surprising addition to its top 10 rankings was Monero at number 9, given that several governments including the Japanese government and its financial services agency (FSA) have expressed their concerns towards cryptocurrencies like Monero and Zcash that are capable of processing anonymous payments that could be associated with money laundering and criminal activities.

The cryptocurrency community was taken aback by the ranking of bitcoin at 13, which was co-ranked with privacy-focused cryptocurrency Verge. The bitcoin community was understandably outraged by the ranking of bitcoin at 13, considering that bitcoin has the longest track record as the most secure and dominant cryptocurrency in the global market.

The argument that bitcoin’s application is limited to a form of money and payment is illogical, as the Chinese government ranked Steem, which has a single application on its blockchain network that is a content distribution platform, as the 2nd best blockchain network behind Steem.

More importantly, bitcoin has one of the most active open source development communities in the global cryptocurrency sector and it has developed innovative technologies like Confidential Transactions (CT), Bulletproofs, and Lightning Network, which allows developers to enable private transactions, process micro-payments, and with solutions like RootStock, potentially allow bitcoin to function as an Ethereum-like smart contracts platform.

Exceeded Expectations

The majority of the cryptocurrency community expected the Chinese government to rank private blockchain networks and protocols that can assist the government in surveillance or monitoring transactions at the top. Hence, the ranking of the government which placed cryptocurrencies like Ethereum and Monero demonstrate the intent of the government to remain objective in its assessment.

However, analysts have stated that the Chinese government has overlooked the long track record, hashrate, computing power, and accumulated difficulty of major blockchain networks like bitcoin and prioritized next-generation blockchain networks instead.

Earlier this month, South China Morning Post, a major publication based in Hong Kong, reported that China’s public blockchain rankings were developed by China Center for Information Industry Development (CIID), an institute that works closely with the government to advise on policymaking in technology.

The high ranking of Ethereum and smart contract blockchain networks could influence the government to potentially allow some blockchain networks to operate in China.

Chinese Crypto Giant Huobi Launches Billion-Dollar Blockchain Fund

Huobi Labs, a blockchain incubator that is part of the Huobi exchange, has signed an agreement with Tianya Community to build a “Global Cultural and Creative Blockchain Lab” in Hainan Province, China, alongside the launch of a billion-dollar industry fund that aims to back the blockchain industry globally.

Under the background of the “new era of Chinese socialism characteristics,” the government has given Hainan Special Economic Zone a new mission of economic reformation. President Xi Jiping, personally planned, deployed and promoted the national strategy.

Huobi To Support National Strategy

Huobi China will support the national-level strategy and will use its technology, resources, talents and capital in the global blockchain industry to contribute to Hainan Special Economic Zone development and explore the construction of an international free trade port, the company announced on its website.

This year, the Huobi Group will:

1. Move Huobi China headquarters (Not Huobi Global, Nor Huobi Pro) to Hainan in the Hainan Ecological Software Park.
2. Build 10 global blockchain labs in collaboration with top global industry companies.
3. Build a global blockchain research institute with the world’s top universities.
4. Build a 40,000-square-meter blockchain incubator.
5. Create a billion-dollar global blockchain industry fund.

Huobi Seeks Government Partnership

Huobi was among China’s biggest cryptocurrency trading platforms prior to crippling domestic regulations that effectively curtailed the industry. After closing its Chinese trading platform in October, Huobi founder Leon Li summed up China’s curtain call as a “watershed moment” for the industry before launching Huobi Pro, its international trading platform headquartered in Singapore.

Huobi’s recent announcement to offer its own token, dubbed “Huobi Token” (HT), is another step in the former Chinese exchange giant’s diversification strategy, which includes an expansion into major cryptocurrency markets in South Korea and Japan.

The utility token is based on the Ethereum blockchain’s ERC-20 standard and will be capped at 500 million tokens. ‘Huobi Token, short for “HT”, is a token system based on Blockchain launching and management,’ the firm explained in a post on its website.

Bitcoin: The Return of The King

Most of you have seen this little, tiny, minuscule, almost invisible jump in volume that happen on the 12th April 2018. So far, it has been the singular highest jump in volume ever seen as market cap went from ~ $270 Billion to ~ $300 Billion. It means around $30 Billion were added to the market in less than 3 hours.

Bitcoin’s dominance remains over 40% and I suspect it will continue to rise as most money that just entered the market should be institutional. There are some strong contenders, like Ripple, due to the nature of the backers (mainly banks and financial institutions).

Nevertheless, there are two ways of looking at this, in my own personal opinion:

  • Either the money that just entered the market stays with the King, or
  • It’s distributed among preferential projects (top-10 I would bet on).

Because there is currently a huge time gap between technological developments and price, meaning price moves due to pure speculation rather than technological advancements or issues that arise. If you think differently look at the examples of IOTA or Verge which have been hacked, however prices of both coins kept rising afterwards. Heck, think about bitcoin: when did the price hit its maximum valuation? At the same time fees were the highest ever.

Price is dictated by volume and what happened was a grand spike in smart-money coming into the market. Maybe some of the money that left at the end of January is coming back.

 

Should we expect the price to continue rising?

Some technical analysts believe price will continue to rise. Then again, the opposite might happen depending on many factors:

  1. Geopolitical tensions between Russia and the U.S. will most definitely shake-up traditional markets. This will no doubt influence the amount of money available to invest in the cryptocurrency market. I’m just not sure how this will affect all markets as at the end, there might be a surprising shift; people could begin to trust more in bitcoin due to its security, resilience and the fact it’s independent from governments and economies.
  2. Investors going short on bitcoin got destroyed and likely lost a lot of money. What can counter this is the CME Bitcoin contracts futures price, as I expect the futures’ volume to rise exponentially. Why? That’s easy: because it’s profitable for those investing in both markets.

  1. News sources. When many positive news start to arrive we usually see a growing euphoria and hype (check google trends) from dumb-money entering the market leading to massive price runs. I see no reason for this to be different this time. If history taught us something is that it “repeats” itself, going around and around in circles.
  2. Small technological hops (pun intended) will play a massive role in the long-term future, as bitcoin and other cryptocurrencies are being given time to prepare for adoption worldwide. Hopefully exchanges won’t need to block new hordes of users signing up, bitcoin’s lightning network will be fully operational and segwit adopted by most mining agents and trading platforms.

We cannot forget price is crucial to bring new people into the market, but to keep those users technology must answer today’s problems. People do not care if money is centralized, decentralized, distributed, digital, or physical; People care about:

  • How can I get that money?
  • How much do I pay to store and transfer that money?

For truly massive adoption either the bitcoin team thinks of a way to easily distribute it among where is needed, this is, in countries where banking is limited for example, or a benign group of people develops a way to distribute the currency directly to people in exchange for something, other than money (time, attention, services, etc). I understand those who think until this currency is used by business worldwide it’s a joke. I get it, I truly do, however if the purpose of this cryptocurrency is to bank the un-banked and to be successful in connecting communities worldwide by allowing anyone to transfer and store value over the internet, then maybe the right way to do this would be to simply find ways to trade bitcoin for time and services in those places.

–note: i did not mention the question “how long does that money take to get to another account?”as the current banking system needs 3-5 business days for international transfers to take place. When the bitcoin network is clogged, i have personally waited around 24h for a bitcoin transfer to get approved. It still beats the banking system for personal transactions, which is the final aim of this cryptocurrency (in my opinion)–

Easier said than done

The reality, of course, is that acceptance dictates the rules of the game; businesses  have to start pushing cryptocurrencies by accepting them. At the end of the day for cryptocurrency to be used, all intervening agents must participate.

We must not forget there will always be two sides to the same coin:

  • Should we focus solely on price and volume, to master our gains? Or
  • Should we focus in improving technology scalability and marketing, to achieve worldwide adoption?

Doing one alone would be unwise as balancing both seems to be the right way for the market to grow. My only hope is that the entire community keeps improving the consensus in bitcoin (and other cryptocurrencies), never forgetting its true purpose

Ethereum , Ripple and other cryptocurrecies values riseas Bitcoin price spikes

The price of bitcoin rose by $1,000 in less than an hour, sparking massive gains across cryptocurrency markets

Bitcoin’s sudden price rise has resulted in gains across cryptocurrency markets, with ethereum, ripple and litecoin all surging in value.

Within the space of an hour on Thursday, 12 April, bitcoin rose by more than $1,000 – breaking above $8,000 for the first time since March.

The movement’s of the world’s most valuable cryptocurrency is usually reflected across other virtual currencies, and this unprecedented spike was no exception.

Ethereum, which boasts a market cap of around $45 billion, shot up in price by 10 per cent, taking it close to $500. At its peak in January, one ether was worth more than $1,300.

Similar percentage gains were experienced by ripple, which has the third highest market cap behind bitcoin and ethereum.

The altcoin EOS saw the largest gains out of all the top five most-valuable cryptocurrencies, rising by over 30 per cent to take its market cap above $7 billion.

The market-wide shift follows several months of steadily sliding prices for bitcoin, which peaked at nearly $20,000 in December 2017.

Dramatic market movements are not unusual for the notoriously volatile cryptocurrency, which can often be triggered by positive or negative news surrounding regulation and laws.

The latest surge does not appear to be related to any significant news within the cryptocurrency space, however, with some analysts suggesting the gains come from a change in sentiment amongst investors.

“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.

“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle.”

Despite the gains, Cooper advised investors to be cautious about betting on a positive direction of the market beyond the short term.

“We’d need to see a sustained rise over a number of weeks to signal the end of the bear market,” Cooper said. “We’re definitely not there yet.”

UK Watchdog to Publish its Review on Cryptocurrencies Later this Year

Britain’s financial regulator and markets watchdog outline its policy thinking on cryptocurrencies with a review to be published later this year.

In revealing its business plan for the coming financial year, the Financial Conduct Authority (FCA) underlined cryptocurrencies as ‘an area of increasing interest for markets and regulators globally’. While admitting that cryptocurrencies do not directly fall under its regulatory scope, the FCA stressed that certain models of their usage bring them under its purview in a ‘complex’ landscape.

Pointedly, the FCA confirmed it would reveal its own take on cryptocurrencies, policy-wise, later this year. The regulator said:

We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.

The FCA is notably a member of the ‘Cryptoassets Task Force’ established by the British government in March 2018, consisting of the regulator, Her Majesty’s Treasury and the Bank of England (the central bank). The working group will explore and study the benefits and risks of cryptocurrencies, UK Chancellor of the Exchequer Philip Hammond said last month, helping the UK’s fintech sector to ‘grow and flourish’ in a regulatory climate that has broadly been supportive of blockchain technology and cryptocurrencies over the years.

On Friday, the FCA mandated firms offering cryptocurrency derivatives to comply with all applicable rules to be authorized, stating it would be a ‘criminal offence’ otherwise.

Earlier in February, the UK’s Treasury Select Committee, an influential group of cross-party members of parliament (MPs), launched an inquiry into cryptocurrencies in an effort to better understand them.

While the Treasury Committee confirmed it would look at risks and threats posed by cryptocurrencies to ‘consumers, businesses and governments’, committee chair Nicky Morgan stressed the group would “also examine the potential the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”

Committee member Alison McGovern added that the inquiry would help UK lawmakers and politicians to better educate themselves on cryptocurrencies before enforcing policies. “It is time that Whitehall and Westminster understood cryptocurrency better and thought more clearly about the policy environment for blockchain technology,” she stated.

Cryptocurrency news: Will Litecoin ever overtake Bitcoin?

LITECOIN is currently ranked as the fifth cryptocurrency on the market, it has grown more than 3855.16 percent over the past year and has shot from $4.26 this time last year to a price of $168.49. So why has it experienced this remarkable growth and could it overtake the number one cryptocurrency bitcoin?

Litecoin was founded in 2011, two years after bitcoin was born.

The token is often referred to as the ‘silver to bitcoin’s gold’, as it was launched using the same code as bitcoin and its aim was to improve on the transaction speed of bitcoin.

Instead of using bitcoin’s SHA256 network, Litecoin used scrypt functions which helped to improve transaction speeds.

Bitcoin creates a block of information with data encrypted in 10 minutes, whereas Litecoin does it in two and half minutes per block.

As a cryptocurrency, it is favoured by traders as it is considered to be not as congested as bitcoin and is a lot cheaper as a result.

And experts claim Litecoin has asserted itself as a cryptocurrency which deserves to be in the top five, but does it have the potential to ever overtake bitcoin?

Will Litecoin ever overtake Bitcoin?

Litecoin has experienced remarkable growth this year, increasing in price by 3855.16 percent, compared to bitcoin’s 593.39 percent.

Bitcoin has been plagued by extended transaction speeds as users flood the network – many have said it has become a victim of its own success and has become too congested.

Despite this, experts do not predict Litecoin overtaking bitcoin any time soon.

Bitcoin was the first cryptocurrency on the market so has first advantage and is recognised as a well-know cryptocurrency name, Nicholas Cawley, analyst at Daily FX explained to Express.co.uk.

The number one cryptocurrency managed to garner a critical mass and drew in investors and traders, and Mr Crawley said he does not envisage Litecoin ever outshining bitcoin.

However the analyst also predicts Litecoin will overtake another cryptocurrency this year, which is currently fourth on CoinMarketCap.com.

“I think Litecoin will overtake Bitcoin cash but in market capitalisation terms will struggle to overtake Bitcoin,” Mr Cawley said.

Bitcoin Cash has just under 17 million tokens in circulation against a maximum of 21 million, while Litecoin has 55.5 million of a maximum 84 million in supply, so if prices remain the same litecoin’s market cap will grow faster than Bitcoin Cash.

“I also like the Litepal payment system and when we eventually see the launch of the Litepay debit card, then I can see Litecoin overtaking Bitcoin Cash.”

Kristjan Dekleva, head of product development at Blocktrade was in agreement and did not forsee Litecoin taking the number one spot on the cryptocurrency market.

Mr Tekleva said: “I don’t believe that Litecoin will overtake bitcoin. Litecoin does its intended job well for certain intents and purposes and has somewhat wide market penetration.

“But one it lacks the name recognition that Bitcoin has, which helps it stay where it is despite its flaws, and two there are numerous other altcoins that do Litecoin’s intended job, quick and cheap transactions, much better.

“Ultimately, it functions ok, but not well enough to break out of mid-market in the long run.”

While Andrei Barysevich, Director of Advanced Collection at Record Future, believes Litecoin has the capability to overtake bitcoin at some point, but not in the current climate.

“Bitcoin is not going anyway, everybody knows about bitcoin, in my view, it is going to remain as a gold standard. People will continue to use and continue to store money in bitcoin,” he said.

“However in day to day operations, I think Litecoin is to become more dominant currency, as soon as we start to see established e-commerce websites accepting Litecoin, that’s the time when i think Litecoin is going to dominate bitcoin cash.”

Mr Barysevich added to say he believes Litecoin will continue to experience growth in 2018 and will add on the success it is already experienced.

 

Israel: Steps Toward Cryptocurrency Support

In terms of technological innovation, Israel has been labeled by some as “The Startup Nation”with Israeli ventures raising over $5 billion in capital in 2017. This is almost 10% of China’s yearly fundraising total. While there’s a number of popular applications, platforms, and products including USB flash drives, the Waze navigation app, SodaStream carbonation machines, the country has set its foot in the crypto industry as well.

Back in 2017, Hapoalim, Israel’s largest bank, partnered with Microsoft to create a Blockchain-powered platform to “make the process of signing up guarantors simple and quicker.” And in February 2018, the Israeli Tax Authority (ITA) stated that cryptocurrencies will be taxed by the capital gains as properties.

On February 26, 2018, the country took it even further, when the Israeli Supreme Court handed down a decision that would temporarily block Leumi Bank, limiting a local broker, Bits of Gold, from facilitating the sale of cryptocurrency.

Though many were quick to laud the temporary ruling as ‘precedent-setting,’ it still leaves ample room for further developments. The judge ruling the case, Anat Baron, said that her decision was “not intended to harm the bank’s rights to analyze with specificity every transaction that takes place with the bank account or to take any actions that are related to minimizing risks.” This likely means cryptocurrency brokers and exchanges putting transparency first will be regarded as lawful—for now

Founder and CEO of Bits of Gold Yuval Roash sees this decision as justified, saying,

“Regulation is one of the things that has been important to us since the beginning. From the very beginning, we saw the problem with Bitcoin in terms of its anonymous characteristics, and we wanted to receive a currency service certificate—and we received it in August 2013.”

This is significant progress from December of last year, when a Tel Aviv district court ruled in favor of Leumi Bank, who had refused service to Bits of Gold because of Bitcoin’s inability to meet anti-money laundering standards. Bank Leumi had also been piggybacking on the Bank of Israel’s June labeling of exchanges as “websites that facilitate gambling transactions”, which is a sore spot for Israel especially. The country proved to be careful about upsetting the balance within its borders, and even blocked popular ride-sharing application Uber from an Israeli debut.

After examining the last five years of Bits of Golds’ operations, Judge Baron determined Leumi’s previous assumption that violations of the law would occur if Bitcoin were left unchecked were false.

In relation to the ruling, Yair Geva, head of the Hi-Tech Department of Israeli law firm Herzog, Fox & Ne’eman, remarked:

“It should be emphasized that the Court did not rule on the fundamental question—which has not yet been decided—whether Bank Leumi is entitled to refuse banking services for cryptocurrency trading. Although the final decision is still pending, it seems that this recent verdict of the Supreme Court will continue to give tailwinds to the tremendous growth of the crypto industry in Israel particularly, and to hi-tech as well as the financial industry in general. One of the reasons for this is that the Supreme Court clarified that Bits of Gold operated transparently and did not violate any statutory provision. In other words, the Supreme Court determined that currently there is no direct legal prohibition on cryptocurrency trading in Israel. It remains to be seen how regulators in Israel will respond to this landmark decision.”

Regardless of how regulators will respond, it’s already clear that progress on Israeli blockchain innovations hasn’t slowed.

“As with any new and promising technology, jurisdictions that instate well-balanced policies to promote innovation and adoption, will find themselves attracting talent and business to their ecosystems on grand scales. The best frameworks will be the ones that take a learning approach, allowing entrepreneurs and institutions to deeply understand how these technologies affect all stakeholders and develop the policies which are beneficial to most while educating the public on tradeoffs and accountability. Israel has always seen the advancement of technology as a strength and opportunity, and is well positioned to lead in Blockchain development and applications,” said Galia Benartzi, Co-founder of Bancor.

Itay Nagler, Israeli citizen and CEO of blockchain-driven travel startup Cool Cousin, says that Israelis, as a default, undercut the perception that things can’t or shouldn’t change.

“We are almost raised to believe that there is always a better, more efficient way to do things. That is one of the main reasons such a small country is home to many great innovative companies and individuals. This is also an explanation to why Israelis were among the firsts to adopt blockchain technology and crypto. A lot of us see it as a wonderful solution to many problems and our mentality of “no fear” to change, and relatively easy access to quality human resources and funding allows us to act on it. This, I believe, helped us during the past decades to position ourselves as pioneers and experts in many industries.”

Even though there were no concrete regulations of the industry before, it didn’t stop entrepreneurs from launching blockchain projects of their own. Bancor was one of the first major ICOs, raising over $150 million in mere minutes, and has its origins in Israel. IOTA , an IoT-focused Blockchain solution, recently opened an office in Tel Aviv, noting that the city is “a well-established tech hub, always ranking in the top 10 of start-up reports.”

These positive changes, however, go contrary to the recent decision by the Israeli regulators of not including companies involved in the crypto industry in the TASE, Tel Aviv Stock Exchange indices, due to its ‘trading volatility.’

Israel appears to be setting itself in the Blockchain ecosystem, along with the rest of the world, but tries first guarantee that the market’s grey areas be limited while its most useful attributes allowed to flourish

Bittrex Will Remove 82 Tokens Due to Lack of Liquidity in Small Cryptocurrencies

Bittrex, one of the largest cryptocurrency exchanges which also powers UpBit, South Korea’s second biggest exchange operated by Kakao subsidiary Dunamoo, has stated that it will remove 82 tokens from its trading platform.

Token Removal

“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange,” said the Bittrex team. “We will be removing the wallets included in the list below on March 30, 2018. Once these wallets are removed, we will no longer be able to recover these coins. Users must withdrawal their coins before March 30, 2018, in order to keep them.”

The Bittrex team also stated that several cryptocurrencies have broken blockchains that have disabled users from withdrawing their balances.

“The coins marked with an asterisk (*) have broken blockchains or wallets that will not allow withdrawals,” said Bittrex, referring to cryptocurrencies like CRYPT.

On leading trading platforms, it is difficult for exchanges to sustain a stable order book if a cryptocurrencies does not have enough liquidity and demand from users of the platform. Lack of liquidity leads to price manipulation, which can be initiated with funds as little as $50,000, as shown in the recent study done by cryptocurrency trader Sylvain Ribes.

By using a method called slippage–a process of selling $50,000 worth of a particular cryptocurrency on a trading platform to measure its impact on the price–, Ribes evaluated the liquidity of digital assets on major exchanges like OKEx and GDAX. While GDAX had a slippage of less than 1 percent, on OKEx and other cryptocurrency-only exchanges with low market cap or volume cryptocurrencies, each sale of $50,000 led to a 2 to 10 percent drop in the market value of cryptocurrencies.

“A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market. What I did not expect was the magnitude of the fraud,” said Ribes. “Many pairs, albeit boasting up to $5 million volumes, would cost you more than 10% in slippage, should you want to liquidate a mere $50k in assets,” he added.

Wash trading and price manipulation is common on major trading platforms with small cryptocurrencies or low-volume cryptocurrency pairs. The US Securities and Exchange Commission (SEC) recently warned investors against pump and dump schemes that are often seen in the cryptocurrency market.

“Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. These frauds include ‘pump-and-dump’ and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies,” SEC’s statement read.

SEC’s Involvement

Earlier this month, the SEC requested cryptocurrency exchanges to either de-list ICO tokens or register with the agency in order to continue providing support for tokens. For US-based cryptocurrency exchanges like Bittrex, it is mandatory to register with the SEC before processing trades involving tokens.

Throughout next few months, many major exchanges will likely de-list or remove small cryptocurrencies that are prone to pump and dump schemes, and market manipulation.

Could Ripple, Bitcoin and Ethereum return to previous high?

CRYPTOCURRENCIES such as Bitcoin, Ripple and Ethereum are all in the green today after a turbulent start to the year. But could all three top tokens return to their previous record highs? Here are the latest price predictions.

Bitcoin had a good weekend after a poor start to 2018, dropping to under $6,000 at the start of February.

As of Marsh 17, CryptoCoinHubs  highlights a peak up to $8,150  at the time of writing.

Ethereum is up at $600  with Ripple  at $0,66. While LiteCoin , a Litecoin is currently worth $160

The rises come after a damaging month for cryptocurrencies as a whole. After peaking at about $834billion on January 7, the market plunged an eye-watering 66 percent, wiping out some $553billion, according to CoinMarketCap.

But with Bitcoin, Ripple and Ethereum all back in the green today, many crypto experts are confident that the market can reach new heights this year.

Could Ripple, Bitcoin and Ethereum return to previous high?

Thomas Glucksmann of GateCoin told CNBC: “Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year.”

He added bitcoin, the biggest and best-known cryptocurrency, could be “pushing $50,000 by December”.

Jamie Burke, CEO at Outlier Ventures, is bullish about the cryptocurrency market, insisting it has the potential to reach $1trillion.

He told CNBC: “We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”

And Panos Mourdoukoutas, writing for Forbes, suggested that after “ being in a deep correction for a few weeks, Bitcoin, Ethereum, Ripple, and Litecoin have been coming back nicely over the last week, gaining 19.87%, 10.48%, 30.57%, and 53.90% respectively”.

He added the crypto turnaround after the recent crash comes as equity markets rebounded from the sell-off early in the month.

And he also wrote the cryptocurrency “technicals” remain strong, saying “83 cryptocurrencies [are] advancing and only 17 declining among the top 100 listed currencies.”

Dennis de Jong, managing director of UFX, says he believes cryptocurrencies remain strong and will not plummet for good in 2018.

He told Express.co.uk: “It may not capture the headlines like the volatility of bitcoin has in recent months, but there have been considerable advances in the underlying technology of the blockchain.

“Many industries are already live with, or in the process of testing, blockchain use cases that have potentially huge knock-ons for data management and security advancements.

“The relationship between crypto usage and investment in the space underpins bitcoin’s value to an extent, and for this reason I can’t see it going anywhere soon.”

But as central banks attempt to kickstart regulation – Citibank India being the latest financial authority this week to ban cryptocurrency payments on debit or credit card – some investors believe the market slump could be an indicator of an overall crash in all financial markets.

Bleakley Financial Group CIO Peter Boockvar said: “If bitcoin resumes its decline here, I think that equity investors should pay attention.”