Tag Archives: Cryptocurrency

From Tim Cook to Yuval Harari Disrupting Data Protecting Privacy Building Blockchains and Hacking Humans

From Tim Cook to Yuval Harari – Disrupting Data, Protecting Privacy, Building Blockchains and Hacking Humans

In a recent Time article,

Apple CEO Tim Cook calls for legislation to prevent data breaches and irresponsible collection of user profiles. “I and others are calling on the U.S. Congress to pass comprehensive federal privacy legislation—a landmark package of reforms that protect and empower the consumer.”

In 2018, Cook laid out four principles to guide legislation. The principles presented to a global body of regulators included the right to have data minimized, the right to knowledge of data collected, the right to access data, and the right to collect and delete personal data.Still, he believes that laws alone will not ensure privacy rights are observed. He wants tools that can help protect consumers from the shadow economy where data is sold to data brokers without users’ consent.

Cook explains,

“Meaningful, comprehensive federal privacy legislation should not only aim to put consumers in control of their data, it should also shine a light on actors trafficking in your data behind the scenes. Some state laws are looking to accomplish just that, but right now there is no federal standard protecting Americans from these practices.”

“That’s why we believe the Federal Trade Commission should establish a data-broker clearinghouse, requiring all data brokers to register, enabling consumers to track the transactions that have bundled and sold their data from place to place, and giving users the power to delete their data on demand, freely, easily and online, once and for all.”  In 2018 Cook championed the same principles blockchain developers are prioritizing: efforts to build transparent, decentralized systems that give users greater control over their digital identities.

While Cook proposes the creation of a centralized body to tackle privacy issues on the internet, blockchain developers are working on decentralized projects to solve many of the same issues. But the approach is fundamentally different. Cook trusts that a new group of people can sort out privacy issues; blockchain developers put more faith in math and machines. They’re building automated systems that can operate in cryptographically secure environments to monitor and enforce agreements and data-access privileges.

Different blockchain technologies, both public and private, offer different solutions for various privacy issues.

You can check "Have I Been Pwned" to see if your data has ever been breached.

Privacy focused internet browser Brave, for example, is designed to protect consumer data. Brave works closely with blockchain identity startup Civic, using its verification services to protect users’ identities. Brave reports that it currently has 5.5 million monthly users that avoid data-harvesting intermediaries.

Projects such as Enigma, Dfinity, Ethereum and Tron are building scalable blockchain solutions to create a decentralized internet. The idea is to rethink how data is moving in and out of vast silos that are controlled by corporations and governments. By giving users control of their data, and not clearinghouses, blockchain developers are potentially averting what author and historian Yuval Harari believes is the most challenging dilemma of our lifetime.

Says Harari,

“There is a lot of talk about hacking computers and emails and bank accounts, but actually we are entering into the era of hacking humans. And I would say, the most important fact anybody who is alive today needs to know about in the 21st century, is that we are becoming hackable animals. This is the most important thing….

“It starts on the surface. And this is what we already see today. It starts by having corporations and governments amass enormous amounts of data about where we go and what we search online and what we buy, and things like that. But this is all surface, and outside: how I behave in the world. The big watershed, the big change will come once it starts penetrating inside, inside your body. Once you can start monitoring and surveilling what’s happening inside your body, inside your brain, then you can really hack human beings. And this – we’re very close to it.”

Harari says an external system can eventually learn to know people better than they know themselves. “It will never know you perfectly. There is nothing perfect in the world. There is no such thing as perfect knowledge. Amazon or the government will never know you 100%. But it doesn’t need to. It just needs to know you better than you know yourself. And this is not very difficult, because most people don’t know themselves very well.”

It could take decades before the first human being is potentially hacked. Until then, the focus remains on securing data and eliminating abuses by profit-driven business models. As people try different methods to solve a common problem, from the creation of more centralized bodies or clearing houses, to the proliferation of decentralized blockchains that are both public and private, several outcomes could emerge. And there is no certain way to predict the future. But one question is becoming strikingly clear and increasingly critical as engineers and entrepreneurs move forward to advance various technologies. Which one should we trust more – man or machine?

Article Produced By
The Daily Hodl Staff

https://dailyhodl.com/2019/01/19/from-tim-cook-to-yuval-harari-disrupting-data-protecting-privacy-building-blockchains-and-hacking-humans/

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WordPress Partners with Google News to Launch Open Source Platform for Newsrooms

WordPress Partners with Google News to Launch Open Source Platform for Newsrooms

On January 14, 2019, WordPress announced the launch of Newspack by WordPress,

an Open Source Platform for Newsrooms which will begin operations in mid-2019 with backing from ConsenSys, Civil media and others.

Financial Backing

This new solution is in partnership with Google and the Google News Initiative who contributed $1.2 million to the cause. It is also being backed with financial contributions from The Lenfest Institute for Journalism ($400,000), ConsenSys, the venture studio backing Civil Media ($350,000), and The John S. and James L. Knight Foundation ($250,000). According to the statement, another $200,000 from an unnamed fifth source is expected to be given by the end of the month.

Economic Models

The main goal of Newspack is to create source publishing and revenue-platform for news publications. It is widely known in the publishing industry that maintaining an economically viable financial structure for newsrooms isn’t always easy and this new platform helps to bypass that problem. The new platform will also incorporate the best editorial practices from the industry. When Civil first launched their own platform, they spoke about how journalistic integrity is better preserved when the newsrooms are not at a loss for how to sustain themselves financially, and this comes into play here as well.

This sentiment was echoed by Kinsey Wilson, the president of WordPress.com, who said, “Local news organizations are struggling to find sustainable models for journalism — a crisis that has very real implications for democracy. We’re joining with industry leaders to bring technology, publishing and business expertise together in a single platform that can be shared by news organizations across the globe.” The platform will be launched formally in the middle of 2019 and will accept about a dozen news organizations, though there are plans to accept more by 2020.

More Details

Applications from potential charter newsrooms have already opened and close by 11:59 p.m. Eastern Time. For the developmental period, which will last till 2020, Automattic will fund the project, after which there will be “operating fee’s” of between $1,000 to $2,000 charged per month to participating newsrooms. Requirements for potential participants include a demonstration of either editorial and financial success in the past or a strong business plan, original content being produced and the meeting of the needs of a distinct geographic region or distinct subject area.

Article Produced By
Tokoni Uti

Tokoni Uti is a writer with several years of experience whose work has appeared in the Huffington Post, The Los Angele Free Press, The San Diego Free Press, Genvieve magazine and Blockchain Reporter. She holds a degree in accounting from Bowen University and lives in Lagos, Nigeria.

https://btcmanager.com/wordpress-partners-with-google-news-to-launch-open-source-platform-for-newsrooms/?

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The Endgame for LinkedIn Is Coming

The Endgame for LinkedIn Is Coming

After two years, Microsoft still hasn’t delivered on its grand vision for LinkedIn. And it may never do so.

   

Every time this LinkedIn commercial pops up on YouTube

I am reminded of how low the company has fallen to. High school standard slides, accompanied by stock music purchased from Shutterstock.How did a company like this managed to sell itself for US$27 billion?—?at a 50% premium over its last traded share price!Dumb-ass buyer? Nope, it was Microsoft, under Satya Nadella’s leadership as CEO.

Nadella is credited with turning around Microsoft, after Steve Ballmer’s US$7.9 billion mistake buying Nokia back in September 2013. (The money was pretty much written off by Microsoft in July 2015.) But did Nadella make the same mistake with LinkedIn, except it would be 3.4x bigger?A classic case of turning a loser into a winner… for one person.

The only clear winner in the whole deal is Reid Hoffman, the founder and Chairman of LinkedIn. Just four months before the acquisition, LinkedIn’s share price plunged 44% in one day after the company announced a bad quarter and lowered forecasts. Hoffman lost over a billion dollars in his net worth, which was about one third of his wealth then. Fast forward to June 13, 2016, LinkedIn announced a merger deal with Microsoft. The stock price shot up by nearly 50%. Hoffman’s net worth went back up by US$800 million. Four months after the merger was completed Hoffman also joined Microsoft’s Board.

‘Inconsistency’ would be the word

By all measures LinkedIn wasn’t a great company; even though it kept boasting about its user growth. Having hundreds of millions of users is pointless if you can’t effectively monetize it. In fact, it becomes a huge cost to keep the platform running and prevent bad user experience due to capacity issues at scale. LinkedIn’s historical ability to make money for its investors is as choppy as its stock price.

But would it be fair to conclude this without taking into account market conditions? Well, the best comparison to LinkedIn would be Facebook, which was listed almost exactly a year after LinkedIn. Since then its earnings and stock price has steadily trended up, whereas LinkedIn was a constant whip-saw.Was LinkedIn’s turbulent performance bad luck, bad times or bad management?

Where were the problems?

In the aftermath of that 44% stock price plunge, much was written about what LinkedIn’s problems were. History is history, but let’s look at four which are pertinent to our discussion later.

?Jack of all trades.
LinkedIn had?—?and still has?—?multiple branded apps: Job Search, SlideShare, Learning, Recruiter, Sales Navigator and something call ‘Elevate”, which purports to “build your reputation by sharing smart content”. A news and publishing app called Pulse was integrated into the main app in May 2017. The idea of selling relevant services to your user base is good, but not if you can’t do it well.

?Bad at integration and scaling.
LinkedIn acquired many companies to introduce various services, but wasn’t so good at making them work. In July 2014 it acquired Bizo for US$175 million to build a B2B lead generation product. That product was scrapped less than a year later. CEO Jeff Weiner said it took “more resources than anticipated to scale”. In April 2015 LinkedIn made its largest ever acquisition?—?US$1.5 billion for Lynda.com, an online video training provider. In Q1 2016 Weiner again “acknowledged that integrating and scaling Lynda will require greater investments than previously anticipated”.

?Ads were expensive and user-unfriendly.
Natalie Halimi, a marketer with 10 years of experience, wrote about LinkedIn ads back in July 2014. She used the headers “high CPC, poor dashboard, poor analysis” and concluded “ LinkedIn need to reassess their pricing strategy to provide better ROI for advertisers”. I too have tried using LinkedIn Ads and compared them to Facebook, Twitter and Google. I have to say I completely agree with Halimi.

?Overvalued, full stop.
Just before the plunge, LinkedIn shares were trading at 50x forward earnings. Twitter was at 30x, Facebook 34x and Google 21x. It was one of the most expensive stocks in tech. Even after the plunge, analysts felt that LinkedIn should be trading at 30% lower to reflect fair value. But despite knowing all these, Microsoft decided to acquire LinkedIn… at a 50% premium.

Why?Microsoft’s prescription: remedy or mistake? In an internal email to employees after the acquisition was announced, Nadella claimed he wants to create “a vibrant network that brings together a professional’s information in LinkedIn’s public network with the information in Office 365 and Dynamics”. By doing this, he said Microsoft would then be able to detect the project the user was working on and help them connect with “experts” via LinkedIn to assist them with the task or serve them relevant articles in their LinkedIn news feed.

This begs two very important questions.

One, anyone who uses LinkedIn frequently will know profiles are hard to trust these days. Many are fluffy or even completely fake. How would the experts be qualified? Two, digging into users’ projects provokes personal privacy and corporate secrecy issues. Microsoft tracking what their users do in Office 365? Sounds like a class action legal suit to me.

Nobody I know in big corporates or government organizations has gushed to me yet about how LinkedIn has served up great articles or experts for whatever they are working on in Office 365. I doubt that vision is going according to plan.

The irony is more than thick

Irony 1: If Nadella’s strategy to attract even more Office 365 users via integrating LinkedIn works, it may face monopoly lawsuits yet again. When Microsoft introduced Office 365, it was to battle Google’s G Suite which appealed to smaller businesses with its cheaper pricing and cloud-based subscription model.

It is succeeding. According to a 2018 Bitglass survey, Office 365’s global market share has gone up to 56.3% from 7.7% in just four years. G Suite has stayed at about 25% since 2016.

But…

Success in this strategy will just create the same old legal issue Microsoft had always battled?—?MONOPOLY. Irony 2: Why wasn’t it Google that bought LinkedIn instead? Here’s an interesting tidbit: LinkedIn’s employees were actually using G suite?—?the whole bag: Gmail, Calendar, Drive, Hangouts, Docs, Sheets…?—?before the Microsoft acquisition.

So…

Irony 3: Two years after the integration begun, the Microsoft team was still in the process of moving the LinkedIn team over to Office 365. How could Microsoft possibly convert its worldwide enterprise users to a sophisticated combination of Office 365, Dynamics and LinkedIn when it is struggling itself to move the LinkedIn folks over to Office 365?

And so LinkedIn is facing integration problems yet again with big acquisitions, except now the financial burden is on Microsoft…Could Microsoft succeed as the (super generous) white knight? The acquisition was completed in December 2016. It’s been more than two years. How has it been? According to Microsoft the acquisition is a big success. It has managed to grow LinkedIn’s revenue quarter after quarter since. But revenue is all Microsoft ever talks about in its press releases.

Why?

LinkedIn is still operating at a loss for Microsoft due to the large amount of intangible assets it has to write off on the purchase?—?US$7.89 billion to be exact. In FY 2017, LinkedIn brought in US$2.3 billion of revenue for Microsoft. But after amortizing US$866 of intangible assets, Microsoft made an operating loss of US$924 million on LinkedIn. In FY 2018, the situation was the same. Despite LinkedIn’s revenue more than doubling to US$5.3 billion, after amortization of US$1.5 billion Microsoft recorded an operating loss of US$987 million.

The amortization will continue for another 20 years based on Microsoft’s FY 2018 report. Most of the impact will be felt in the first seven years, after which the amount tapers off to about US$107 million per year. But here’s the REAL kicker. Remember the part earlier where Microsoft paid a 50% premium for a company that was hardly making any profits before the acquisition? Well, that means it pretty much bought a company based on conceptual ‘Goodwill’ and not actual value?—?US$16.8 billion worth to be exact.

In layman terms, what this means for Microsoft is, even after the US$7.89 billion has been completely amortized, it is still making a loss of US$16.8 billion on the acquisition. It doesn’t take any more number crunching to realize that Microsoft has a huge task ahead of it to prove the price it paid for LinkedIn was worth it. And I think Microsoft’s shareholders have came to the same conclusion.

Put your money where your mouth is

In October 2018, Microsoft said in a regulatory filing that activity on LinkedIn will be one of six factors which will be used to determine how much performance stocks Nadella and four other top company executives get. Performance stocks accounted for one-third of Nadella’s compensation in FY 2018. The tracking will take place over a 3-year period and the payout will only be given in 2020. At first glance binding Microsoft’s key leadership to the performance of LinkedIn made perfect sense. After all, it was the largest acquisition the company had ever made.

But consider this:

When the acquisition was first announced, Weiner said that Nadella promised him LinkedIn would be operated as a “fully independent entity”. Well, Weiner reports directly to Nadella under the terms of the deal. How independent can your decisions be when your boss’s bonus depends on you now? So it is indeed strange that this compensation scheme was not imposed on Hoffman and Weiner but Nadella and his C-suite instead. Even more strange is why Microsoft’s compensation board weren’t concerned about user activity not translating into actual profits for LinkedIn.

The metric being used is bizarre. Microsoft will count the “number of times logged-in members visit LinkedIn, separated by 30 minutes of inactivity”. So that’s basically how often me and other LinkedIn members open our LinkedIn mobile app or visit its website. How does that translate into LinkedIn being able to make more money? Other than perhaps create the chance to deliver more ad impressions?

But Cost Per Impression (CPM) is already pretty competitive compared to rival platforms according to one study for 2019. It is Cost Per Click (CPC) that is still stubbornly high for LinkedIn.Indeed, there is no transparency as to how LinkedIn’s revenue has grown quarter after quarter since the acquisition. LinkedIn is now reported as a product under Microsoft’s ‘Productivity and Business Processes’ segment with few financial details given. In any case, the pressure is on for Nadella and his team. 2020 is coming soon, and it could be either pay day, or pain day.

Article Produced By
Lance Ng

I write about business, technology, society and people around the world… Investor | Entrepreneur | Thinker…

https://medium.com/@lancengym/the-endgame-for-linkedin-is-coming-31d4a8b2a76

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Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

  
 

 Binance, a pure crypto-to-crypto exchange,
has been found to still be on top of the cryptocurrency exchange market, at a time in which exchanges using the controversial trans-fee mining model have been gaining a bigger piece of the pie. According to CryptoCompare’s December 2018 Exchange Review, Binance has managed to maintain its status as the number one crypto exchange in the ecosystem last month. The document shows that, on average, $664 million worth of cryptocurrencies changed hands on the exchange per day, for a total of $20.5 billion traded in December.

Binance was seemingly also the most visited exchange, after receiving 2.2 million visitors. Its users are currently able to trade 166 cryptos on the platform, on a total of 427 trading pairs. Behind Binance came OKEx, which traded $19.2 billion in December. While Binance, by itself, represented little over 10% of the cryptocurrency exchange market, CryptoCompare also found that exchanges using the controversial trans-fee mining model, which has been described as a “disguised ICO” revenue model, as it reimburses users’ trading fees with tokens.

Trans-Fee Mining Exchanges Gain Market Share

According to the report CoinBene, the number one cryptocurrency exchange using the controversial revenue model, traded $10.4 billion in December, followed by ZBG and EXX, which traded $5.13 billion, and $4.58 billion respectively. In total, trans-fee mining exchanges traded $23.2 billion, equivalent to 12% of the global spot trading volume, up from 7% in October. It has in the past been found that these exchanges have unusually thin order books, and a relatively low amount of traffic, taking into account the total trading volume they have. Thin order books mean these exchanges can see large price swings if their order books face large orders.

Order Book Depth Drops on Top Exchanges

Per CryptoCompare’s report, top cryptocurrency exchanges would have to, on average, face a $2.56 million sell order to see bitcoin’s price crash 10%, a figure that has dropped since November, and is lower on trans-fee mining exchanges.

The report reads:

Bitfinex, Kraken and Bitstamp maintained the most stable markets in December, while exchanges CoinBene, Bitforex, IDAX showed thin markets combined with high volumes.

It adds that on Bitfinex, where an average of $68.5 million were traded in December among its top 5 trading pairs, it would take a $9.5 million order to crash the price 10%, while on CoinBene it would take only a $13,600 order. An analysis of the crypto exchanges’ web traffic showed that these exchanges attracted “significantly lower daily visitors than similarly-sized exchanges.” CoinBene, for example, received 48,000 visitors per day, and traded $10.4 billion in December, while exchanges like Bitfinex and HitBTC with “similar high volumes” attracted over 360,000 visitors.

Article Produced By
Francisco Memoria

News Reporter

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2019/01/binance-is-still-the-dominant-exchange-and-trans-fee-mining-exchanges-are-gaining-market-share/

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Ex-Soviet State Uzbekistan Considers New Crypto Move

Ex-Soviet State Uzbekistan Considers New Crypto Move

Uzbekistan cash.
The country’s new Digital Trust fund is studying raising funds via security token offerings.

The former Soviet state of Uzbekistan, finally under new leadership after decades of Islam Karimov running the show, has discovered cryptocurrency at a time when no one seems to want it. No, they are not launching a cryptocurrency like Venezuela’s Petro coin or the breakaway province of Abkhazia’s coin plans over in the nation of Georgia. New president Shavkat Mirziyoyev says crypto is legitimate tender, at least for cryptocurrency traders. He legalized exchanges in the Central Asian nation in September and created a fund that same month to invest in blockchain-related startups and research and development called Digital Trust. Other than being an investment vehicle for new technology, Digital Trust is stepping on the crypto bandwagon in trying to bring security token offerings (STO) to a country few in the crypto world have even heard of.

Uzbekistan may not be on anybody’s radar, but its foray into STOs are another testament to crypto being akin to a potential godsend for raising capital in emerging and frontier nations like Uzbekistan. “We are looking very carefully at STO and just starting to build the framework for it,” says Bobir Akilkhanov, investment director at Digital Trust. “We understand that ICOs were a hype tool for investors, with no assets to back up those coins. STOs are more of a legitimate investment because you can tokenize your assets. We are working on the laws to build the market. We don’t want to hurry through it and make all these mistakes and have something that is not useful.”Uzbekistan’s President Shavkat Mirziyoyev launched a blockchain fund in September, two years into his presidency. Crypto exchanges and trading is legal in Uzbekistan. (AP Photo/Alexander Zemlianichenko) photo credit: ASSOCIATED PRESS

He did not disclose the funds assets under management. And they have no STOs or cryptocurrencies in the portfolio. Right now, this is just Uzbekistan testing the blockchain waters, which is separate from the muddy crypto waters, of course. Neighboring country Kazakhstan is doing the same with blockchain so as not to miss anything. One of their core holdings in the fund is Delta City, a large scale real estate project in Tashkent with all the smart-city bells and whistles … and no tokens.

Uzbekistan traditionally attracts investors from South Korea, China and Russia. For crypto and blockchain, the ones showing interest are from China, Hong Kong, Japan, South Korea and Singapore. STOs are sort of like the grown-up, Wall Street-ish version of the initial coin offering, the cryptocurrency market that ushered in the euphoria for crypto between 2016 and 2017 until that bubble burst in 2018. Coindesk, one of the premier publishers of crypto/blockchain news, hasn’t published a story about an ICO since December 5, and before that … November 14. If cryptocurrency investing is ever to professionalize, it needs traditional investors, and traditional investors seem to prefer the STO.

Digital Trust says it ideally wants to see if they can raise money for Uzbekistan assets in STO offerings, either belonging to private or public companies. The fund is currently looking to establish partnerships with leading blockchain service providers where they can test drive a homegrown STO market.Workers operate sewing machines at the Platinum Moynaq Cotton Cleaning Factory in Uzbekistan in March 2018. Proponents of cryptocurrency say that poor countries will have an easier time raising money from foreign investors via cryptocurrency. Photographer: Taylor Weidman/Bloomberg photo credit: © 2018 Bloomberg Finance LP© 2018 Bloomberg Finance LP

“Companies can raise money the old-fashioned way too, through bond offerings. But STOs are an interesting avenue because it makes some of your state assets more readily accessible to foreign investors,” says Igor Khmel, CEO and founder of BankEx in New York, a fintech company providing STO services. “For the same reason you are using a smartphone instead of a rotary phone, STOs are faster, cheaper and more efficient because of the blockchain-based securitization of assets. They are easier than an initial public offering, easier than venture funding and more accessible than the bond market."

Some are suggesting that STOs could help $1 trillion of assets migrate onto various blockchain platforms before the end of the decade. Like the dying ICO market, STOs have true believers. “If it plays out the way I think … it is likely to be the greatest investment opportunity humanity has seen in this era,” CEO of Polychain Capital in San Francisco, said during a panel discussion at the Web3 Summit in Berlin in October.Olaf Carlson-Wee, founder and chief executive officer of Polychain Capital. STOs are “the greatest investment opportunity” in crypto. Photographer: David Paul Morris/Bloomberg photo credit: © 2017 Bloomberg Finance LP© 2017 Bloomberg Finance LP

According to a report in Longhash, a blockchain news and information portal with offices in Shanghai and Hong Kong, OpenFinance Network and tZERO are STO-focused exchanges set to offer a flood of listings in 2019. Coinbase recently acquired a broker-dealer license and an alternative trading system license, along with a registered investment advisor license, out of the expectation that cryptocurrency investing and fundraising is far from dead. Binance plans to launch an STO trading platform with the Malta Stock Exchange. And in Uzbekistan, BankEx is the early entrant in an otherwise tiny crypto market. Digital Trust brought them there.

“The main thing about these markets is you have to have open networks, which makes it kind of borderless, so it doesn’t matter where you are anyway,” says Diego Gutierrez Zaldivar, founder of RSK Labs in Argentina and a well-known bitcoin guru throughout Latin America. “Blockchain is just the combustion engine to all these things related to cryptocurrency, but you need the full car. You need an internet of value for all of these investment plans to come to fruition,” he says, adding that countries where economies are volatile are more apt to see crypto thrive over time, so long as the infrastructure exists to make it happen.

The Uzbek currency, the som, is relatively stable. It was allowed to free-float under the new government and lost over half of its value in the process. But since September 2017, it’s been relatively steady between 8,000 and 8,300 to the dollar. Their GDP growth rate has been over 5% since 2004, according to the World Bank. It’s poorer than India, with a GDP per capita of less than $1,600. It would take the average Uzbek a year to buy half a Bitcoin.

“Our goal is to starting our STO platform in niche markets, or niche regions like Uzbekistan,” says Khmel. BankEx is also present in the crypto havens of South Korea and Japan. They are moving into Thailand mainly for digital-asset custody. “Uzbekistan is different. We will be doing STOs there. The government wants to become a blockchain-centric government,” he says. “Each country has something unique to offer, I think. They can become one of the main markets in the region for companies considering STOs. We are taking the first steps with them to make it happen.”

Article Produced By
Kenneth Rapoza

Kenneth Rapoza

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All About Security Tokens Landscape With The Founder Of Polymath

All About Security Tokens Landscape, With The Founder Of Polymath

Security tokens are an intriguing development,

that function as a bridge between blockchain networks and legacy financial assets. Following the rapid and blessed decline of the ICO, security tokens – particularly the security token offering (STO) – have started gathering momentum among financial institutions, service providers and regulators.

To understand STO's betters, I recently sat with Trevor Koverko, founder of Polymath who offers a look at the current state, and future, of security tokens. In 2017, Trevor wanted to tokenize a private equity fund he was running, but found it hard to do for an existing financial security, especially on the technical and legal side. This drove him to launch a security token launchpad for himself and other STO projects. He grew to raise around 60 million USD in funding.

YV: Can you provide some context on the ST-20 security token standard, for the audience that may be unfamiliar with what exactly a security token is and how they function?

TK: If you look at how important the standardisation of ERC-20 was for Ethereum, it's clear that security tokens similarly need a common set of functions that we all agree upon. Even the NYSE had to standardize its tech stack before it could truly scale. Built into the ST20 standard are transfer restrictions such that only authorized individuals can buy, sell, and hold the token. There are features that restrict trading for a defined period of time, or that limit the number of shares any one individual can hold.

YV: What do you view as the current stage of the security token market?

TK: I believed STO's would overtake ICO's, but didn't expect adoption to happen so fast. 

The infrastructure needed to support things like institutional-grade custody, licensed security token exchanges, and regulatory clarity is progressing faster than I could have imagined. Many players are creating tools for this ecosystem. 2019 is on pace to be a pivotal year for security tokens.

YV: What can security tokens add to financial assets?

TK: One of several things that security tokens bring to the table, is that they unlock liquidity. LP shares, startup equity and even fine art are all typically illiquid assets. STO's have the potential to unlock this value. They can make small, private non-liquid securities more accessible for everyone.

The technology is open and transparent, so international trading becomes trivial. It’s open 24/7. It’s the concept of a global, national agnostic market that never closes. It’s faster and cheaper to make trades. It’s the idea that security tokens are programmable, whereas many legacy stocks are not. You can command security tokens to do things like automating corporate governance, proxy voting and dividends — all perfectly documented on the immutable blockchain

YV: What regulatory progress is being made with security tokens?

TK: STO's are simply securities. They live in an upgraded format than a traditional security, but they are still a security.  

We are fortunate that financial securities have very clear definitions, with enormous bodies of case law and precedents behind them, that tell us what the SEC considers a security. So, you have to follow all the registration forms, secondary trading rules, and for most offering types, investors need to be accredited. The beauty of the blockchain is that code can automate a lot of those rules.

YV: Is there a specific financial asset that you think will initially emerge from the rest with STO's?

TK: We are very bullish on the ownership of funds tokenizing – think LP shares, REIT units and so on. I’m seeing many people choose real estate as a first mover, and I tend to agree.

However, I like to take inspiration from other decentralized projects that have reached scale -for example with Ethereum. I noticed the team didn’t choose which vertices to attack first – instead they opened it up for the world, and let the market decide how to use it. It was community driven. Like Ethereum, we are going to see a lot of small companies that need the money, or struggle to raise capital traditionally turn to STO. But once bigger, well-funded projects see the possible benefits of tokenization, they won’t be far behind.

YV: Ethereum is also very developer-driven. How can more developers be drawn into the STO market?

TK: An active and engaged community of developers isn't just important for decentralized projects, it literally is the project.  

That is what made Ethereum an unstoppable force, the 30k plus of volunteer crypto engineers that self-organized within dozens of meetups globally. Without an army of talented, open-source developers, it hard to make consistent progress in this rapidly evolving ecosystem. It's important to incentivize for-profit developers to build products on top of your platform.

They are expensive and elusive compared to other professions, and the 2017 bull market certainly did cause some dislocation in terms of scarcity of talent and salary expectations. However, 2018 caused the crypto labor market to clear and now is a great time to be aggressive building a deep technical bench of senior engineers.

YV: How do you view the role of broker-dealers, and other service providers, evolving in the STO market?

TK: The thing about security tokens is that it’s not necessarily anything new. Securities laws have an enormous amount of precedents and established case law to guide issuers. Security tokens aren’t looking to skirt regulations; they are looking to embrace and follow regulations in this new environment.

KYC, AML, accreditation attestations, secondary trading restrictions, broker-dealers – these are all things we had to think about during the architecture phase of our company. While security tokens offer hope for the crypto market, is it important to do your own consideration before investing or participating in any type of funding, especially in the crypto market.

Article Produced By
Yoav Vilner Contributor


Crypto & Blockchain.. A serial startup mentor and CEO. Veteran blockchain advisor.

https://www.forbes.com/sites/yoavvilner/2019/01/17/all-about-security-tokens-landscape-with-the-founder-of-polymath/#23b823e860f0

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Crypto Winter Isn’t Fatal For All Picks and Shovels’ Makers

Crypto Winter Isn't Fatal For All ‘Picks and Shovels’ Makers

  

Executives say key infrastrucute is continuing to be built
Dropping equity valuations also attractive buying opportunity

The crypto winter that’s seen major digital assets crash by as much as 90 percent hasn’t been bad for all of the firms building infrastructure or investors looking to pick up equity in projects that dropped appreciably. "This is the most productive phase we’ve ever been in," said Konstantin Richter, chief executive officer of Blockdaemon, a firm that creates and hosts the computer nodes that make up blockchain networks. That’s because various efforts in the space need to deliver on their ambitions and are turning to firms like Blockdaemon for help. "Projects now need to show their colors. The time is up of raising a lot of money and talking a lot of talk," Richter said at a panel discussion hosted at the Los Angeles bureau of Bloomberg News.

After seeing cryptocurrency prices soar to records in late 2017 and early 2018 — Bitcoin peaked near $20,000 and Ether traded over $1,300 — the market had a disastrous time last year. Bitcoin is down about 80 percent with Ether having dropped about 90 percent. Investors and the public appear to have major concerns about what blockchain technology can actually deliver in the real world after hearing promises of its transformational potential.

 

"The skepticism is warranted in many ways because this technology is nascent and untested at an industrial scale," said Adam Jiwan, CEO of Spring Labs, which is using blockchain technology to build a decentralized credit-reporting system. He said the shakeout has been good for picking up employees who have seen their funding dry up or been cut loose from development firms. "Our hope is this presents us with a great opportunity to recruit talent," he said during the discussion.

The rise and fall of digital currencies validated the approach at Maco.la, a Los Angeles based investment, advisory and recruiting firm, said co-founder and principal advisor Sheri Kaiserman. That’s because the firm decided at inception last year to make equity investments rather than buying initial coin offerings, she said.

"We felt like the best way to make money is to buy the infrastructure companies — the picks and shovels — that are helping build the foundation," she said. "They are coming down in valuation, which is the best part of the crypto winter for us," Kaiserman said. Maco.la is looking to invest in projects that avoid the repetitious work being done in the space at the moment as well as ones that have a high likelihood of being acquired, she said. "That’s why we focus on ones where we think Microsoft might be interested or that Google might be interested."

Blockchain, originally developed as the ledger technology that powers Bitcoin, is promising for corporations, if they can figure out how to use it. Proponents predict billions of dollars in savings by handling data and transactions more efficiently and rapidly. Yet most corporate efforts are still in early development or testing. Still, depending on when a blockchain startup raised funding, it could still have plenty of money to spend on development, Richter said. "There are projects that are so well funded they’ll last for years," he said. Any ICO that went before the summer of 2017, for example, may have been able to buy Bitcoin at $600 compared to its current value of about $3,600, he said.

Health Care

Kaiserman said blockchain has the potential to radically change how global payments are made, specifically remittance payments when you factor in that Western Union charges 8 percent to 10 percent to send money compared with "a nominal cost" of Bitcoin transactions. There is also the chance to use it to give 1.1 billion people a digital identity around the world who currently lack a documented existence. Her favorite use is in health care, she said.

"I would love to be able to go to a doctor and the knowledge of my insurance is on the blockchain" so that "the insurance company knows that’s a covered diagnosis and there’s no need for reconciliation because we’re all sharing this one ledger," she said. Spring Labs is advised by former Federal Deposit Insurance Corp. Chair Shelia Bair and former Goldman Sachs president and Trump administration chief economic advisor Gary Cohn. The firm avoided an ICO because they thought it would hurt adoption and risked regulatory scrutiny, Jiwan said. It’s working closely with regulators like the Securities and Exchange Commission to understand how to transition from a firm backed by equity to issuing a token that would be used on its network, he said.

In November, the SEC announced its first civil penalties against two crypto companies for allegedly violating securities offering registration rules with their ICOs. Both Airfox and Paragon Coin Inc. will need to pay $250,000 in penalties and register the digital tokens they sold through their ICOs as securities to resolve the matters against them, the SEC said Nov. 16. A few weeks later, commission Chairman Jay Clayton said cryptocurrency entrepreneurs should get their “act together” and register their initial coin offerings with the SEC if they want to avoid problems down the road. "There’s some important issues in terms of straddling the transition from security tokens to utility tokens," Jiwan said. "The SEC’s primary concern is speculation ahead of actually delivering a functional technology, which, by the way, is reasonable," he said.

Article Produced By
Matthew Leising

https://www.bloomberg.com/news/articles/2019-01-16/crypto-winter-isn-t-fatal-for-all-picks-and-shovels-makers

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Volume of Crypto is Dropping is Bitcoin Headed Below 3000?

Volume of Crypto is Dropping, is Bitcoin Headed Below $3,000?

  

In the last 48 hours,

the volume of the crypto market has dropped from $15 billion to $13 billion as the Bitcoin price fell below the $3,600 mark. Analysts have started to demonstrate concerns regarding the declining volume of digital assets and the potential scenario of cryptocurrencies free falling without significant sell pressure from bears.

Is $3,000 Inevitable For Bitcoin?

Generally, traders in the crypto market expect a lackluster year with low volatility, at least until cryptocurrencies escape the last stage of a 12-month-long bear market and initiate a strong accumulation phase. In the short-term, however, many traders envision most cryptocurrencies including Bitcoin testing key support levels in a low price range.

A cryptocurrency trader Josh Rager wrote:

As the volume continues to slowly descend Bitcoin could see more sideways ranging This could last for days or weeks until a decrease in buyers, currently holding up the market, at these levels. Nice support below $3,000 with lots of buyers waiting there.

Currently, following an intense sell-off on January 11, the crypto market is demonstrating stability in the range of $122 to $124 billion. But, the combined valuation of all cryptocurrencies in the global market is down nearly $100 billion since November 2017 and the asset class is struggling to demonstrate signs of a trend reversal. Considering the lack of momentum of cryptocurrencies and the inability of dominant digital assets in the likes of Bitcoin and Ethereum to breakout of important resistance levels, a cryptocurrency technical analyst DonAlt suggested that 2019 may turn out to be a boring and a low volatile year.

“I’ve been relatively inactive this year – for one reason – there just hasn’t been too much to trade. I wouldn’t be surprised if ’19 plays out like this, boring, choppy and frustrating to trade. The worst thing you can do is force trades when your system doesn’t give you any,” the analyst said. As Bitcoin approaches the low $3,000 region, similar to its corrective rally in mid-December, it may initiate a relatively sharp recovery triggered by big buy walls on major cryptocurrency-to-fiat exchanges such as Coinbase and Bitstamp.

How About Other Cryptocurrencies?

If Bitcoin continues to fall below $3,500 and possibly to its 12-month low at $3,122, cryptocurrencies with low market caps and daily volumes are expected to experience intensified downward price movements against both Bitcoin and the U.S. dollar. Digital assets that have shown strong upward price movements in the past several weeks due to product launches and protocol upgrades including TRON and Ethereum have already begun to drop in value, affected by the negative sentiment surrounding the short-term trend of the cryptocurrency market.

The price movement of Bitcoin, until the January 11 correction, was seen as a positive short-term breakout above $4,000. But, based on the intensity of the sell-off over the past week, it will likely have a minimal impact on the performance of the asset class in the weeks to come.

Article Produced By
Joseph Young

Hong Kong-Based Finance and Cryptocurrency Analyst. Contributing regularly to CCN and Hacked. Providing unique insights into the crypto and fintech space since 2012.

https://www.ccn.com/volume-of-crypto-is-dropping-is-bitcoin-headed-below-3000/

TP

Bitcoin Has Jumped 82000 Percent over the past Seven Years and Declared Dead for 91 Times in 2018

Bitcoin Has Jumped 82,000 Percent over the past Seven Years and Declared Dead for 91 Times in 2018

   

Bitcoin was declared 91 times as dead this year alone,

and 337 times so far. But despite the current bear cycle, data show that Bitcoin has grown more than 82,000 percent over the last seven years.

Bitcoin “died” 91 times in 2018

According to the website Bitcoin Obituaries, there were 91 publications in 2018 that announced the demise of Bitcoin (internationally even much more). Interestingly, even in 2017, the number was 125, the number actually increased after Bitcoin reached its all-time high of about $20,000 in December. Altogether, the black painters, according to the website, Bitcoin since 2010 for 337 times declared dead. But how dead can it be if it works around the clock with near-full availability and has been operating for over a decade now?

82,000 percent growth in the last seven years

It is true that the continued bear market has been steadily adversely affecting Bitcoin price. Bitcoin is currently trading more than 80 percent below its all-time high so far. However, if you measure Bitcoin only in terms of its price in dollars, it turns out that Bitcoin not only that is not dead but has actually grown by more than 82,000 percent in the last seven years. In addition, the basics are still intact, while other metrics, such as hash rate (network security) and layer 2 scaling solutions (such as the Lightning Network) are actually experiencing unprecedented growth.

Bitcoin acceptance is a real

Regardless of how often the black painters have announced the sinking, so does the number of investors own or use Bitcoin. Four separate studies by the Ontario Securities Commission and the Central Bank of Canada show that three to five percent of Canadians own Bitcoin.

Another survey conducted by the market research institute YouGov revealed that up to nine percent of British residents own the cryptocurrency, while 90 percent have since heard of Bitcoin and cryptocurrencies. In addition, the state of Ohio accepts Bitcoin for tax payments. And for what is supposed to be “dead”, over $410 billion was transacted in 2018 over the Bitcoin network or an average of $13,000 per second (despite its falling value). After all, this is not the first time the cryptocurrency has suffered 80 percent loss. However, as it turns out, Bitcoin came back every time and reached an even higher level.

Article Produced By

Vidrih Marko

I love writing, and that is why I do it. A passion for not only providing the information but for helping people understand.

https://medium.com/@VidrihMarko/bitcoin-has-jumped-82-000-percent-over-the-past-seven-years-and-declared-dead-for-91-times-in-2018-77da724c6397

 

TP

THE RESULTS of the reddit cryptocurrency survey – a comparison of opinions demographics and portfolios of redditors from different subreddits

THE RESULTS of the reddit cryptocurrency survey – a comparison of opinions, demographics and portfolios of redditors from different subreddits

  

One month ago I posted a survey of over 40 questions

to a range of different cryptocurrency subreddits and collected just over 300 responses. Since then I have processed the data and taken a look at the different demographics, opinions and portfolios of different users as well as comparing the results from different subreddits. This post is the results of this survey.

In this post I have condensed the results to a number of key stats and graphs. If you want to take a look at the graphs or read the discussion, they can be found in the full report. For the graphs, just scroll down to each section in the report and you will see them.

How do steemit users compare to reddit users?

I don't know so I have set up an almost identical survey for all steemit users to respond to if they like. If I can collect enough responses then I will make a comparison post like this one comparing reddit users and steemit users! If you would like to fill out the survey, you can do that here.
The live raw data collected from this survey can be found here:

Key Stats:

Section 1: Reddit and social media use

• Two thirds of cryptocurrency subreddit users frequently browse non-crypto related subreddits.

• Over 70% of cryptocurrency subreddit users used reddit previous to finding out about cryptocurrencies.

• For 1 out of every 8 cryptocurrency subreddit users, reddit is the only social media platform they use to keep up with crypto.

• 94% of cryptocurrency subreddit users check the price of their cryptocurrencies daily!

• Over 40% of cryptocurrency subreddit users check the price of their cryptocurrencies over 10 times per day and 80% check the prices at least 3 times per day.

Section 2: Demographics

• 95% of cryptocurrency subreddit users are male.

• The median age of cryptocurrency subreddit users is between 26 and 30 years old.

• Almost 50% of cryptocurrency subreddit users are from Europe and another third are from North America.

• Over 75% of cryptocurrency subreddit users either have a University degree or higher or are currently studying at University (University is the same thing as college for any Americans reading this).

• More cryptocurrency subreddit users are living off money they made from crypto than there are users who work in the blockchain industry.

• Over 20% of cryptocurrency subreddit users are students, of these students, 60% of them are at University.

• Nearly 40% of cryptocurrency subreddit users consider themselves gamers.

• 2 of the 331 cryptocurrency subredditors sexually identify as an attack helicopter. It is fair to say that I have learned not to add an “other” gender option in future surveys!

Section 3: Experience and interest in cryptocurrencies

• 70% of cryptocurrency subreddit users consider themselves HODLers.

• Decentralisation is the main ideological reason for cryptocurrency subreddit users to be into crypto and blockchain tech.

• 36% of cryptocurrency subreddit users got into cryptocurrencies in 2017 and 27% got into crypto in 2013.

• 45% of cryptocurrency subreddit users have previous experience in the stock market.

• The average cryptocurrency subreddit user is into crypto for the money but still has a significant interest in blockchain tech.

• Most cryptocurrency subreddit users consider themselves very likely to mention cryptocurrencies to a friend.

Section 4: Crypto Portfolio

• The median cryptocurrency subreddit user has somewhere between $5,000 and $20,000 invested in cryptocurrencies.

• Nearly 45% of cryptocurrency subreddit users have invested either less than 10% or more than 90% of their total savings in crypto.

• Nearly 10% of cryptocurrency subreddit users would rather not share what price category the size of their investment in crypto fits into for this semi-anonymous survey.

• 80% of cryptocurrency subreddit users have made a profit off their crypto investments.

• 60% of cryptocurrency subreddit users who invested in crypto after June 30th 2017 have made a profit off their crypto investments.

• 60% of cryptocurrency subreddit users own altcoins outside the top 10 coins by market cap.

• 50% of cryptocurrency subreddit users own 3 cryptocurrencies or less.

• Nearly 30% of cryptocurrency subreddit users have invested in an ICO before.

• The average (median) cryptocurrency subreddit user is signed up for 3 cryptocurrency exchanges.

• For just one third of cryptocurrency subreddit users, altcoins outside the top 10 coins make up more than 10% of their portfolio.

Section 5: Cryptocurrency Knowledge

• Most cryptocurrency subreddit users believe that they understand blockchain technology quite well.

• More than 50% of cryptocurrency subreddit users have fully read a whitepaper.

• Over 75% of cryptocurrency subreddit users know of Satoshi Nakamoto, Vitalik Buterin and Charlie Lee and who they are.

Section 6: Opinion

• Most cryptocurrency subreddit users think that 3-5 of the current top 10 cryptos will still be in the top 10 in 3 years.

• Nearly 40% of cryptocurrency subreddit users don’t support SegWit2x.

• Just 10% of cryptocurrency subreddit users have an unfavourable opinion of Bitcoin.

• Nearly 70% of cryptocurrency subreddit users have a favourable opinion of Ethereum.

• More participants have a favourable opinion of Ethereum than Bitcoin.

• More than 55% of cryptocurrency subreddit users have an unfavourable opinion of Bitcoin Cash.

• Almost 75% of cryptocurrency subreddit users have an unfavourable opinion of Bitcoin Gold.

• 50% of cryptocurrency subreddit users have an unfavourable opinion of Bitconnect while a further 47% don’t know how they feel about it or don’t know enough about it to have an opinion.

• 45% of cryptocurrency subreddit users have an unfavourable opinion of Ripple.

• Nearly 55% of cryptocurrency subreddit users have an unfavourable opinion of Ethereum Classic.

Final Section: Subreddit Comparisons

• Over 70% or r/Bitcoin users are opposed to Bitcoin Cash while just under 20% of r/BTC users are opposed to it.

• Over 25% of r/ETHTrader users don't have an opinion of Bitcoin Cash.

• 80% of r/BTC users approve of SegWit2x while just 6% of r/Bitcoin users approve of it.

• Over 50% of both r/Ethereum and r/ETHTrader users don't have an opinion of SegWit2x.

Which Subreddit has the highest rate of ICO investment?
The highest rate of ICO investment by users from r/CryptoCurrency where 38% of users have invested in an ICO.

Which subreddit has the most compulsive price checkers?
The two trading oriented subreddits (r/BitcoinMarkets and r/ETHTrader) had the most compulsive price checkers, with r/BitcoinMarkets having a significantly higher percentage of compulsive price checkers.

Which subreddit rates their crypto knowledge the highest?
r/Cryptocurrency, r/Bitcoin and r/BitcoinMarkets all have similar distributions with the same averages (median of 7 out of 10 and very similar mean values just below 7). r/ETHTrader rated their crypto knowledge the lowest with a median of 6 out of 10 and a mean just above 6 which as about 0.7 lower than the mean values of other subreddits.

Closing Words

That's it! If you want to read through the full report I made or want to see the rest of the graphs, I have left a link to the report where you can find them near the top of this post. I will also leave the raw data and the spreadsheets I used to process the data below if any of you are interested. Finally I’d like to thank everyone who participated and especially those who gave criticisms and feedback on what I covered in the survey and how I formatted it. I’m open to any recommendations for next time and criticisms of this survey so that I can make my next survey better.

Article Produced By
trickybits

https://steemit.com/cryptocurrency/@trickybits/the-reddit-cryptocurrency-survey-a-comparison-of-opinions-demographics-and-portfolios-of-redditors-from-different-subreddits

TP