BITCOIN and The Cryptos
mga naging Milyonaryo sa ACUDEEN ng panadalian, hehehe, paper gain.
(09-13-2018, 11:05 AM)Gavh1208 Wrote: mga naging Milyonaryo sa ACUDEEN ng panadalian, hehehe, paper gain.

...mga milyunaryo na kayo kaagad sa ACU? naknang  dancing man


...balitang crypto ulit, negative

Cryptocurrency exchanges resort to irregular practices for demand

WITH digital-currency trading volume having plunged, some of the biggest crypto exchanges are turning to unorthodox practices to boost activity and win market share.

Bitfinex, FCoin and OKex are encouraging startups to drive depositors to their online-trading platforms to get coins listed. Other exchanges, such as Binance and KuCoin, are embracing listing fees that can differ by project. Many exchanges are also rolling out their own “native coins,” which traders then use to vote on potential listings.

The practices are in contrast to those at traditional exchanges, which charge lower flat rates and don’t require issuers to direct trading traffic to the exchange. Other bourses don’t poll existing users on which securities get to trade.

The embrace of the unusual comes as crypto exchanges feel the pain that’s swept through the digital currency market after coin prices collapsed 50% on average. Trading volume has plummeted 80% since a January peak, according to data. And new types of coins and exchanges, which are billed as cheaper and easier to use, threaten to eat deeper into fee revenue.

“The market downturn has certainly contributed to an increase in unorthodox strategies by token issuers and exchanges,” Lucas Nuzzi, director of technology research at Digital Asset Research, said in an email.

For coin issuers looking to get exposure to investors, the practices can be confounding. Christopher Franco, co-founder of Washington, North Carolina-based blockchain startup Expanse, said KuCoin quoted him a listing fee of 50 Bitcoins — roughly $315,000 at current prices. Expanse didn’t go through with a listing.

“We can pay for it, but it doesn’t justify the means,” Franco said in a phone interview. Many startups prefer to invest such sums into research and development and marketing.

KuCoin spokesman disputed the 50 Bitcoin listing fee, and said its listing prices vary by startup. The exchange doesn’t disclose them. “The listing fee is not the key factor for listing a project, the project itself is,” spokesman Miles Wu said.

Crytpo exchange fees can be difficult to determine ahead of time, and two startups of the same size applying to list to the same exchange may be charged different rates. In contrast, Nasdaq Inc. charges $50,000 to list a company with up to 15 million shares, and $225,000 to list a company with more than 100 million shares.

The motivation behind the unusual moves is clear enough. Fees have contributed about $1 billion to the exchanges’ revenue to date, according to Lex Sokolin of Autonomous Research. Listing prices at some exchanges in Asia have reached as much as $1 million, according to Michael Jackson, partner at Mangrove Capital Partners.

But such practices raise red flags for industry watchers, especially as many crypto exchanges function as marketplace, broker, custodian and even holder of assets — roles that are generally split in traditional financial market structure.

That “leads to the inherent risk of conflict of interest,” according to the Asia Securities Industry & Financial Markets Association. Its best-practices recommendations suggest charging a flat fee to all applicants “to avoid giving the impression that the exchange’s listing decisions are determined or influenced by the amount of money an issuer is willing to pay.”

The second-largest exchange, OKex, says on its website that a candidate that brings in 50,000 new registered users, with 20,000 of them active with at least one Ether coin in their account, will have a better shot at consideration.

“We are still receiving a lot of applications,” Jesper Cheng, an OKex spokesman, said in an email. He said companies seeking a coin listing still have to meet listing standards and that simply delivering new users isn’t enough. The exchange doesn’t charge a fee. Another exchange, FCoin, tells users to deposit their coins to earn a listing.

Bitfinex is enticing users to trade on its Ethfinex exchange more by awarding tokens in proportion to their account activity. These so-called native tokens can then be used to vote on whether to allow new listings.

Kasper Rasmussen, who heads corporate communications, said the practice gives the exchange’s most loyal traders a say on what coins are listed. In the last six months, Bitfinex tripled its listings to 270 tokens in an effort to offset declines in trading volume.

“We are having a lot of support from new projects,” Rasmussen said. “We are exploring different ways in how the ecosystem might evolve.”

The largest exchange by trading volume, Binance, says startups that incorporate its coin into their ecosystem have a better chance of getting listed. The exchange, which lists 380 coins, doesn’t have a standard fee but invites startups to make offers, the company said in a blog post.

“All of these will definitely increase your priority of review and chance of listing,” Binance CEO Changpeng Zhao wrote. “We remember people who help us.”

Driving depositors to exchanges can be warranted.

“That’s a perfectly reasonable practice,” Emin Gun Sirer, co-director of the Initiative for Cryptocurrencies and Smart Contracts at Cornell University, said in an email. “There are too many coins, most of them of questionable value, and the exchanges are in a position to pick and choose. It’s not surprising that they would make demands for the coins to bring in something tangible to the exchange.”

Gil Luria, director of institutional equity research at DA Davidson & Co., said investors should be wary of investing in native tokens.

“The goal of a crypto exchange is to serve as an on-ramp into crypto from government currency, or between different crypto assets,” she said. “Adding an exchange token layer may be adding an unnecessary step, which should raise investor concerns.”


(09-13-2018, 01:29 PM)Ollie Wrote:
(09-13-2018, 11:05 AM)Gavh1208 Wrote: mga naging Milyonaryo sa ACUDEEN ng panadalian, hehehe, paper gain.

...mga milyunaryo na kayo kaagad sa ACU? naknang  dancing man

panandalian lang, saka paper gains lang. hahaha. 

May proposal saken si boss Mags ha, nag text ako sau. tara inum tau, hehehe Big Grin Big Grin Big Grin
nagregister ako sa BTCEXA baka malift na ung lock tokens haha
(09-14-2018, 08:43 PM)AndrewSG Wrote: nagregister ako sa BTCEXA baka malift na ung lock tokens haha

hahaha, sana ma relaease na. baka makausap namen ni Commander may ari ng ACU tignan nten kung anu proposal nila sa atin. hehehe.  banana banana banana
(09-17-2018, 09:51 AM)Gavh1208 Wrote:
(09-14-2018, 08:43 PM)AndrewSG Wrote: nagregister ako sa BTCEXA baka malift na ung lock tokens haha

hahaha, sana ma relaease na. baka makausap namen ni Commander may ari ng ACU tignan nten kung anu proposal nila sa atin. hehehe.  banana banana banana

ayus go $ACU Smile

...cashing out should not be a problem dapat dito para hindi kami matakot mag-invest

Crypto’s open secret: Its multibillion-dollar volume is suspect

FOUR months ago, BitForex was just one of many obscure exchanges offering users the ability to trade cryptocurrencies like Bitcoin.

Today, the Singapore-based platform is regularly reporting daily transactions that exceed $5 billion — nearly matching turnover on London’s 217-year-old stock exchange.

How did BitForex — and other startups like it — expand so quickly despite tumbling digital-asset prices and slowing activity on more established venues?

Many market participants say they suspect these fast-growing exchanges are either offering incentives that encourage users to inflate volumes, or not doing enough to stop abuse on their platforms. One red flag at BitForex: Its reported volume is by far the biggest among 219 platforms tracked by, despite traffic on its website amounts to a tiny fraction of most peers.

For individual investors lured to exchanges with inflated volumes, the risk is that cashing out at prevailing market rates may prove much harder than the reported figures suggest. Doubts about the integrity of crypto markets have deterred some professional money managers from investing in virtual currencies and prompted regulators to take a closer look at exchanges, even as some venues go to great lengths to avoid manipulation.

“Some exchanges will say ‘everyone’s doing it, so I’m doing it,’” said Neil Woodfine, a former crypto exchange executive who now runs Clavestone, a Bitcoin key management service. “New traders will get feedback very quickly from engaging with the market on trades not executing at the price they want.”

If the coins distributed by BitForex retain their value, customers can effectively earn free money by using automated programs, known as “bots,” to swap cryptocurrencies back and forth between accounts under their control. (Not all trade-mining exchanges offer rebates that exceed the value of trading fees paid by customers.)

“All users are contributors to this exchange” and should be rewarded, Jin said by email, adding that BitForex “opposes” all kinds of manipulation and that the incentive program is set to end soon. He didn’t elaborate when asked whether the venue has tools to monitor and prevent abusive trading. Jin said it’s “technically possible” for users to trade with themselves using two accounts, and that the exchange is working to address the issue.

Exchanges including DOBI Trade, FCoin, CoinSuper and CoinBene, which offer or have offered similar transaction mining incentives, didn’t reply to requests for comment., which compiles its data from the exchanges, publishes an “adjusted” ranking that excludes volume from trade-mining venues and some other platforms. “We have multiple automated alerts detecting anomalies in the data,” spokeswoman Carylyne Chan said in an email.

Like other crypto exchanges in Singapore, BitForex isn’t directly regulated by the Monetary Authority of Singapore. “Digital tokens are mainly traded on opaque markets, with no regulatory protection for investors,” MAS said in an emailed response to questions. “There may not be enough active buyers or sellers and consumers may not be able to exit their token investments easily.”

U.S. authorities have expressed similar concerns. Bloomberg reported in May that the U.S. Justice Department has opened a criminal probe into suspected illegal practices in crypto markets, including wash trades. In a report last week, New York’s attorney general said the industry has generally failed to adopt serious market surveillance measures to detect and punish suspicious trading, though it didn’t single out any venues for wrongdoing.

Market participants say quantifying the scale of suspected volume exaggeration is difficult. But Calvin Cheng, a Singaporean entrepreneur who bought a stake in China’s first Bitcoin exchange in January and founded another venue in April, estimated in an interview that most of the trades recorded by crypto platforms globally are bogus. Combined volumes at all exchanges tracked by totaled about $15 billion over the past 24 hours.

Even the largest exchange operators can’t be trusted, warned Asim Ahmad, who recently left BlackRock Inc. to start Eterna Capital, a blockchain investment firm. He based the assessment on his own trading experience and time spent watching exchanges’ order books.

Both Ahmad and Clavestone’s Woodfine said automated, high-frequency trading strategies are likely fueling inflated volumes. Automated trading is widely used in traditional markets under regulatory oversight, though it can facilitate manipulation when unmonitored. The report from New York’s attorney general said it’s “of particular concern” that many platforms have no formal policies governing automated trading.

BitForex may just be “one of the worst offenders in this parade of inflated volume,” said Dmitriy Budorin, chief executive officer of cybersecurity firm Hacken and founder of Crypto Exchange Ranks, which scores venues on metrics including liquidity and security.

As a rough check on exchanges’ numbers, some traders have started comparing reported volumes to website traffic. On that metric, DOBI Trade, BitForex and Liquid stand out as having reported transactions many times larger than website visits (see the above chart for more details).

Liquid, operated by Japan-based Quoine, said its volume doesn’t correlate with website traffic because of users who deploy automated trading programs. Quoine CEO and co-founder Mike Kayamori said clients who have attempted wash trades have been banned from the platform and that the exchange, which is regulated by Japan’s Financial Services Agency, adopts “stringent compliance measures.”

Almost 40 percent of trades at the top 30 exchanges ranked by came from the eight venues with the highest volume-to-visits ratio, data compiled by Bloomberg show.

CoinFi, a cryptocurrency research firm co-founded by former Goldman Sachs Group Inc. analyst Timothy Tam, performs a similar analysis comparing exchanges’ reported volumes to the value of assets held in their crypto wallets. High volume-to-asset ratios can be red flags, Tam said, adding a caveat that some of the data on exchange wallets may be incomplete.

Of course, not all digital currency exchanges are raising concerns among investors. Major venues in the U.S. appear to be reporting “pretty accurate” figures and are willing to work with regulators, said Michael Kazley, a Goldman Sachs and Cedar Lake Capital Ventures alum who co-founded Crescent Crypto Asset Management in New York.

Gemini Trust Co., the New York-based crypto exchange owned by Cameron and Tyler Winklevoss, has hired Nasdaq Inc. to conduct market surveillance for Bitcoin and Ether trading as well as the auction that helps price Cboe Global Markets Inc.’s Bitcoin futures. The twins, famous for their early role in Facebook, have also set up a self-regulatory organization called the Virtual Commodity Association to root out bad behavior in the industry and work with the government.

Jim Bai, CEO of EverMarkets Exchange, says he’s optimistic crypto venues will become more trustworthy as the industry grows.

“Fake volumes are unfortunately all too common in today’s crypto-exchange ecosystem,” he said. “The industry will mature of course. As it does, more legitimate exchanges will come along and provide enough real, beneficial structural incentives so that people won’t be misled into trading on questionable venues. It will be a healthier marketplace.”



...nice read

Bitcoin runs on paranoia, and that’s the beauty of it: Elaine Ou

Traditionally, the only sort of financial system that works at scale is one decided by courts and enforced by threat of violence. Even back in the days of primitive firepower, deposit and lending activities took place in temples consecrated to the ancient gods, to underscore the idea that dishonesty would be punished.

Widespread belief in the threat reduces the need for active enforcement. The IRS relies on a system of voluntary compliance, meaning that individuals are responsible for reporting and calculating their own tax obligations. The IRS doesn’t have time to check everyone’s work, and less than 1 percent of tax returns are audited. Given the odds, one might expect rampant tax fraud. But we don’t see that. Our tax system functions reasonably well — because Americans fear their government.

In fact, Americans are so inordinately obedient that Indian phone scammers have made hundreds of millions of dollars impersonating government officials. Last year, the New York Times profiled an IRS scammer from Mumbai, who gave this charming quote:

“I think they actually are really afraid of their government,” he said. “In India, people are not afraid of police. If anyone wants to come and arrest, they say, ‘Come and arrest.’ It is easy to get out of anything. But in America they are afraid. We just need to tell them, ‘You are messing with the federal government,’ and that is all.”

A system of deterrence works only as long as the threat is credible. The Holy Island of Lindisfarne held substantial unguarded wealth — or guarded only by God, one might say — until the heathen Vikings showed up and ransacked the place.

From the eighth-century English countryside to the modern global financial system, the only security has been the security of threatened violence. No longer.

Now there are public blockchains, designed to support a global financial system without the need for violence or threats. Rules aren’t enforced under duress, but by consensus between computers all over the world. There’s no way to add exceptions or conditions without the approval of every computer in the network.

While the humans behind the computers are still vulnerable to violence, any coercive threat would have to be applied to thousands of independent individuals, many of whom reside in sanctioned countries or ones without extradition treaties.

Oops! Some might consider this a flaw. When it comes to decentralized digital currencies, the U.S. can’t leverage its banking laws to advance foreign policy; participants in sanctioned countries are unlikely to enforce sanctions against themselves.

It’s also a feature. Decentralized jurisdiction has allowed Bitcoin to endure where previous attempts at privately issued digital money were quashed. Bitcoin’s value comes from its resistance to human arbitration.

That’s the theory, anyway. Decentralization is used to keep the network secure against collusion, but that security can be difficult to quantify until it is breached.

Bitcoin has the longest record of resisting intervention, and even its decentralization may be illusory. Last week, a critical software bug was quietly discovered and reported. The Bitcoin software maintainers quickly developed a patch and notified the largest businesses and miners before releasing the information to the public. Within 72 hours, over half the miners had applied the fix.

While it’s reassuring that a potential attack vector was repaired before exploitation, that sort of coordinated effort runs contrary to the idea that Bitcoin is made up of independent unyielding users. “Coordination” is just a socially acceptable form of collusion. And if collusion is possible, then is Bitcoin really immune to meddling?

Concentration of power has been a concern ever since the first Bitcoin mining chip was fabricated. Miners are responsible for arranging transactions into blocks, and majority control of mining power could selectively censor participants or rewrite portions of recent history.

Despite the potential for abuse, it hasn’t happened yet. No one wants to display outsize influence if a network is supposed to be decentralized. In 2014, one mining group became responsible for 51 percent of the total hashing power. Instead of taking advantage of the situation, the group backed off and promised to keep future power below 40 percent.

Confidence in a network’s decentralization is critical to a cryptocurrency’s value. Public blockchains remove the need for mutual trust between participants because everyone independently audits every transaction. In fact, sweeping distrust is necessary to motivate users to perform their own verification. A healthy paranoia is what keeps things running.


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