I got TRON’d: The TRX Fiasco

TRX & Investors

I don’t normally get this upset. The last time I was this upset, was with FINOM (which I still don’t have my tokens for and may never, and no help from their support or the creator).  I’ve also reached out to the TRON Team and it doesn’t look like there will be a response.

TRX is moving, to Binance.  On April 15th they made an announcement that they would be moving to their own blockchain. They told their Tron investors to move their now useless tokens to Binance, or risk losing their investment.

Migration will occur on June 21st-June 25th.

“you must deposit your TRX to an exchange before June 24, 2018 to avoid any losses”.

This is a quote I pulled from  tron.network and it’s not on the homepage, you have to click on TRX to learn this.

That is extremely dire and stressful when you’ve come upon this after the fact.  I was frustrated to see this, and I’m not alone. There is apparently a lot of frustrated investors venting at Justin Sun on Social Media that demonstrated a lack of respect and care for us investors.  The announcement back in April made no mention of the exact process or even which Exchanges would support this process. To add insult to injury they are causing a direct loss since we all have to pay fees to the Ethereum Network and Exchanger to get our real TRX and if you have get a TRX wallet, pay to take TRX out again.  Whether you have 1 TRX or 120,000 it is yours and they should be protecting your investment and you as an investor and they’ve clearly failed.

I suspect it is completely intentional as this will free up a huge amount of supply once they say “sorry you weren’t watching our social profiles 24/7 your TRX tokens are worthless it’s your fault” which is essentially the response of TRON shills at the moment or that “Binance is EOY”.  EOY (End of Year) is still not a lot of time, but the ‘kind shill’ who told me didn’t point me to where he found this information- just randomly saying that Binance announced it. Oh, so another place I have to go find information from just to figure out how to protect my TRX investment.

Then more assuringly they say “If your TRX is held in a wallet and you were not aware of the migration notice, or saw the migration notice after June 25th, please visit our permanent token-exchange counter to exchange your tokens for Mainnet TRX.

Great!. Where is the permanent exchange counter?  There is no link or information readily available.  I’m sure some shill will point out it is probably buried in some other URL but non-shills or 24/7 supporters like me, shouldn’t have to go through all of this.

Tron-TRX-Scam-Screenshot at 2018-07-09 10-33-34

The Shills & Supporters of Tron
When you go on social media to find information directly and vent your frustrations with the lack of care Tron team put into securing investors money, you’re automatically hammered by shills who think that Tron is God and they did no wrong.

Unsurprisingly, me and others who complained were berated:

Tron-Reddit-Shill

I don’t think they got the point that “normal” users and investors shouldn’t need to watch all of Tron’s myriad of social accounts and websites constantly to avoid a loss. Tron isn’t the only coin I have invested tons into, and cryptocurrencies aren’t my only investments. I shouldn’t have to worry that if I don’t pay attention for a couple of months, my investment might disappear because Justin Sun struck up a pump deal with Binance.

The shills and supporters completely devoid Tron of any wrong, and insist Justin Sun did what was mutually right for Tron and for Investors…How? By screwing investors, that’s how. By forcing us to move to Binance and lose money in doing so, where the potential for scams, fraud and hacks to happen, increase.  All the while Justin Sun’s team could have made a registered account system with the millions of ICO money he collected by Investors. The registered account process would have eliminated any risk of fraud, money spent, and saved time for both TRON and Investors. On top of this, there would be NO potential risk of losing your Tron Token.

The Tron dogs focus only on the sole responsibility of the investor to be watching all of Justin Sun’s and Tron’s multiple social media platforms and websites, instead of calling out Tron’s incompetence and lack of respect for the Investors. It’s this general acceptance of ‘disrespect’ is why cryptocurrency teams do not feel responsible to do the right thing for the Investors, but for themselves.

Conflicting And Incomplete Information
Every one of Tron’s sites has conflicting or incomplete information.  We shouldn’t have to go digging to learn that Binance supposedly honors this until the end of the year (2018, which I learned from a Reddit user, he couldn’t point me to where he got that information from though).

I think common sense says the communication was horrible on this one and they’ve made it a lot more stressful and difficult than it had to be.  This shakes investors like me very quickly since there are so many scams even with ‘good ICO projects’.  It doesn’t matter if it’s “Justin Sun” behind the project, in fact it makes it worse.  How is he managing any of this if this is the best he can do?

The Tron supporters who ignore these glaring responsibilities that Tron has to its Investors, reminds me of Bitconnect. Many people called it out for what it was, a scam and pyramid scheme, but Bitconnect shills and supporters ruthlessly defended it as a trustworthy project.  Bitconnect, unpredictably came to an end.  It was a coin that produced nothing and who’s sole value was derived from shills who pumped and dumped it as part of the pyramid scheme/scam. Making millions and screwing real investors in the process.

The shills would have you think something is wrong with you for being upset or out of the loop for a few months but clearly there has been nothing but confusion and frustration since the start of the very unclear path forward:

Justin Sun Announces Tron Migration, Confusion Reigns

https://medium.com/tron-foundation/trx-migration-notice-34de281ebbbd

I’m not saying TRX or TRON is a complete scam but it operates in a very shady way in my opinion.  I’ve taken a blasting by their supporters (AKA shills who find it unreasonable that I am not on multiple social platforms every day glued to see if I can potentially lose my investment).  That’s ridiculous and I don’t think anyone should accept this.

On top of this, I and many Investors do not like keeping things on Exchanges where hacks are often. If you have never lost from a hack, then you don’t know what it feels like, so I’d like for you to sit back down. But Luckily there is a TRX wallet at least to move your real TRX to once you have moved it to Binance.

So Why Did Tron Do This?
Here’s what happened.  In April the Tron Team announced the move to MAINNET or essentially their own cryptocurrency blockchain separate from Ethereum tokens (the worthless ones they gave us in place of the real TRX).  I think it’s wrong to do it this way, since their website has a dire prediction that if you don’t move your tokens to an exchange like Binance, then you’ll lose your investment because they are literally burning and killing the Ethereum tokens they sold you.  What if you don’t have Binance or can’t get on? They didn’t take that into consideration or care.

This is completely wrong!

The Way It Should Have Been Done?
They should have registered all of their investors and token holders in their own system and simply e-mailed everyone or based it on the Ethereum blockchain token holders.

It’s like the bank telling you they closed your account, now you have to exchange all your money for real money at a cost to you, and you should have known because you should have been following their multiple social profiles and websites, all with differing and conflicting information.

Yes, Tron’s literally telling Investors ‘ you should have been able to piece it altogether after some detective work because we struck a deal with Binance and couldn’t be bothered to make a registration system, which would have been at no cost to you and at no risk to you….And yes Tron supporters are literally saying this with gusto, even hashtagging Justin Sun to garner attention for their undying and blind support.

The Good News Though?
It looks like you have until the end of the year with Binance to do this, but as mentioned their site says if you didn’t do it in June you’re done for. So if you haven’t done it already, do it now. Since I don’t like keeping stuff on Exchanges, I’ll be moving it into a wallet quickly.

It’s really simple, all TRON had to do was create a unified system that would just directly e-mail their users this information.  They surely collected enough of our coins to the tune of millions to have the resources to make that system. Besides that, I think a few months is completely inadequate notification. What if someone went overseas or on vacation?  I imagine there will be some in this category who come back in 2019 and ask how their TRON tokens disappeared and they didn’t get their TRX.

I think it could be argued it was ill-thought, ill-mannered and essentially negligent to force users to move their tokens with such short notice.  If they were going to do it this way, they at least should given an unlimited amount of time to exchange the worthless Ethereum tokens to the real TRX.

Justin Sun
This move is a a huge security issue.  How on earth do they go and ask people to move their tokens to an exchange where they could be hacked?  How about all of the typical phishing scams which I am sure we will see, that will be tricking people into sending their tokens and coins into the hands of hackers.  By encouraging people to only go on Social Media which is insecure and commonly hacked, it is simply inexcusable that Justin Sun’s team would do things this way.  The website doesn’t make things clear enough and it should be the main or primary source of easy to find information about these issues.

I think people look too much at “Justin Sun” is behind this and don’t actually look at how the project is being managed.  It’s definitely lost my confidence now.

I do think TRON is a good project and a good idea.  Will it last and succeed? Maybe and I hope my investment will succeed.  But it reeks of the typical issues that a lack of common sense is being used to handle the very basic aspects of this project. Not to mention of lack of respect for the Investors, and anyone who calls them out is automatically bashed, or accused of spreading FUD.

Cryptocurrency companies and teams have to start valuing the investor and do things in a simple and common sense way that protects us and makes us feel confident in our investment.  TRX has lost my trust over this and clearly a lot of others who are frustrated (at least the normal ones who don’t monitor the TRON social accounts 24/7).

The future is bleak for Tron if this kind of ‘care’ is given to investors. But I’m hopeful that this will be the last time something like this will be handled in such a poor way.

Dogecon 2018: Vancouver

Such Wow! Much Conference!

Amongst the sea of self serving blockchain conferences, and large scale multi-million dollar Internet of Things conferences and expo’s, was a refreshing Dogecon held in Vancouver that captured the heart of cryptocurrency. The meme essence came to life.

What started off as a fork of Bitcoin, and a running meme joke, became the largest most dedicated community of cryptocurrencers ever. More than Bitcoin, more than Ethereum, Dogecoin’s strong and proudly loved. It’s community strong, not just about value, but about substance. From tipping to charity, to car racing, the Dogecoin is actually the most viable coin out there. And to celebrate the ‘such wow’, Dogecon was held in Vancouver BC.

A conference where nobody talked about panic selling or the market crashing, instead dance parties, rap shows, dinner and a freaking puppy parade- that’s right, a freaking Shibu Inu parade, was held. You can only wish in your dreams that you had seen it in real life, it was just that amazing.

It wasn’t ‘tradition’, with high rolling investors in thousand dollar suits, no this conference was down to earth, honest and genuine- something you don’t see often in the superficial world of Instagram cryptocurrency.

No twitter cryptoinvestors and enthusiasts had lots of good genuine things to say. Four days of celebrations, real discussions, and Dogecoin worship took place in Vancouver British Columbia. And the reviews are in: It was awesome.
Yes Rocco, this is what it should look like.

Even the sponsors proudly stood by Dogecon with ETH Classic joining in.

Just over 200 participants attended Dogecon, and tickets were sold out by the time I posted about it- sorry about that…  It was a breath of fresh air from the stuffy blockchain conferences, it was relaxed and real, and showed what this amazing Dogecoin community is.

So if you’re looking to invest in a good coin, Dogecoin is it.

Why do I say this:
1. Dogecoin is used more frequently than even Bitcoin cash
2. 40th in Market Cap
3. Has been in use since 2010 for tipping, charities, to car racing etc etc
4. It’s the 4th most popular cryptocurrency (yes that’s right, Dogecoin is the 4th)
5. More viable since the community even after the Creator abandoned it, kept it up.
6. Unapologetically a joke currency that became seriously serious.
7. Doesn’t fall under SEC regulations as a original coin
8. Faster and cheaper to use
9. Dogecon!!!
10. It’s a freaking Shibu Inu, who doesn’t like dogs!
11. It’s not all about ‘Bitcoin level value, or pumping and dumping’, its about the coin itself.

Such wisdom! So get yourself some Dogecoin, and bow to Lord Doge.

It’s safe to say that Dogecon 2019 is going to be even larger and better! What do you think of Dogecoin? Is it still a joke coin to you or are you showing some Doge love! I personally mined and owned Dogecoin, and I’ve easily used it, and it’s honestly one of my top 5 favorite coins. If I had to pick something to invest in, I’d skip the ICO’s and Ethereum tokens, and go straight to Dogecoin.

Cheers!
A. Yasir

Does the CIA know Or Not?

Who Is “Satoshi Nakamoto”

A video titled, CIA Project Bitcoin: Is Bitcoin a CIA or NSA project? made by a group calling themselves the “CIA Project” surfaced on youtube. This group is dedicated in finding all the governments secret projects and making it public. And in this latest video, they are claiming that Bitcoin is actually the creation of the US National Security Agency (NSA).

Now don’t scoff it off as a conspiracy theory or ‘FUD’ and run away. Lets have a gander at what this group is claiming to be their biggest proof.

Satoshi Nakamoto- the name itself.

Now I do touch on this subject a little in my post here, so have a read of that as well to put some other very important pieces of this together.

Satoshi (meaning ‘clear thinking, or intelligent). Nakamoto is a common Japanese surname meaning “central origin or one who lives in the middle) This surname is commonly found in Ryukyu Islands of Japan, which is strongly associated with the Ryukyu Kingdon, a highly centralized kindgom that originated in the Okinawa Islands.  This Island in particular was known as the ‘the place where cannibals lived’….not sure if this gives any weight to Warren Buffets fantastic quote, where he equates Bitcoin mining to harvesting baby brains…

Combined, both names could be interpreted as “Central Intelligence”- could be, loosely. There is in fact a real Satoshi Nakamoto (well Dorian Satoshi Nakamoto) but he vehemently denies he’s the Bitcoin creator and even hired a lawyer to clear his name. How badly do people want to know who this guy is?

The next claim is that no one has actually met Satoshi Nakamoto in person or spoken on the phone with him or her or even them.  Even Gavin Bell (known as Gavin Andresen), who only has contact by email, never in person or over the phone.

Other evidence includes the fact that Bitcoin uses a common PRNG (crypto program) to create secure keys, which is itself believed to have an NSA backdoor. Numerous Reddit threads linking Bitcoin or Satoshi Nakamoto with the NSA have been removed; and that Bitcoin is not decentralized as it is being controlled by a small group which is led by Gavin Bell. Which is true, I’ve said it before that cryptocurrencies are not decentralized in the sense people assume, there is a central body controlling it, and right now with Bitcoin it’s the 80% hashing power Chinese mining farms and Gavin Bell.

But do the CIA Project’s claims have any merit? I think there is- even just a little, is still too much.

The NSA creating Bitcoin has been rumor for many years. People have questioned why it uses the SHA-256 hash function- which by the way we designed by the NSA and published by the National Institute for Standards and Technology..

The fact that the NSA is tied to SHA-256 leads some to assume it’s created a backdoor to the hash function that no one has ever identified, which allows it to spy on Bitcoin users.

“If you assume that the NSA did something to SHA-256, which no outside researcher has detected, what you get is the ability, with credible and detectable action, they would be able to forge transactions. The really scary thing is somebody finds a way to find collisions in SHA-256 really fast without brute-forcing it or using lots of hardware and then they take control of the network,” cryptography researcher Matthew D. Green of Johns Hopkins University said in a previous interview.

This alone makes it worrisome for Bitcoin users or Cyber security specialists. Snowden is very harsh on Bitcoin and says it’s being watched by government agencies- more on that in a different post.

And of course this comes just at the heels after the CIA refused to confirm or deny if they knew who Satoshi Nakamoto is- leaving many to speculate, if they know.  And like Snowden says, ‘they know’.

I myself didn’t want anything to do with Bitcoin in 2009 when my wife told me about it- because of the sheer nightmare that is security and fraud. (Of course I’m glad I reconsidered it and mined as much as I could back then), but it did have the distinct smell of ‘government’ even back then.

Then there’s recent news of 21e8….that’s for another post.

What do you think? Does this prove that Satoshi Nakamoto is actually the NSA? Or does it simply just add another layer of conspiracy theories to an already large mystery.

We may never know.

Cheers,
A.Yasir

The Dark Web Bust

2000 Bitcoins, Hard Cash & Gold Bars

I think we can lay rest the claim that Bitcoin is used for crimes only, considering cash and gold bars (fiat system) seems to be thriving in the latest Dark Web crimes bust.

The US Department of Justice, together with multiple government agencies such as the Homeland Security, The Secret Service, Postal Inspection Service, and the DEA have busted over 35 dark web drugs and arms dealers across the nation.

To be clear, these are the drugs and arms the government didn’t deal themselves, but notorious crime syndicates on the Dark Web (which is why this is a bust and not a government investigation into their own operations).

The different agencies confiscated military grade weapons, drugs and drugs manufacturing equipment.  On top of this they also seized over $30 million dollars in cash, gold bars and around 2000 Bitcoins (which alone totals to over $12 million)

The Department of Justice said in their press release that it was “a year long coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet”.

Agents from the HSI acted as money launderers on the dark web marketplace such as the Silkroad, AlphaBay, Hansa and others, exchanging cryptocurrencies for cash.

Yes you read that right, the government itself used cryptocurrencies in crimes in order to lure in criminals. With this tactic the different levels of federal agencies were able to root out the network of black market dealers.

“Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors,” the press release states.

Nearly all the charged individuals used bitcoin or other cryptocurrencies to some degree in their operations. In one case, the federal officials are seeking the forfeiture of an additional 4,000 bitcoin that they suspect to be tied to online drug sales. If seized, the supplementary stash will put the government’s cryptocurrency requisitions to just over $40 million.

“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit, HSI Acting Executive Associate Director Derek Benner states in the official press release. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”

This investigations findings came after Congress’ own efforts to police crimes online trafficking and the use of cryptocurrencies. The findings went public just a day after the House of Representatives passed the “Fight Illicit Networks & Detect (FIND) Trafficking Act of 2018 (H.R.6069). It’s a bipartisan bill : “to study how virtual currencies and online marketplaces are used to facilitate sex or drug trafficking and propose regulatory and legislative actions to put an end to these illicit activities.”

Rep. Juan Vargas who proposed the bill, expressed in a press release that the House’s approval is “an important first step in helping Congress understand the full extent of how virtual currencies are being used to facilitate drug and sex trafficking and will help us propose effective legislative solutions to fight these crimes.” As the bill moves up to Congress’ upper house, he “[hopes] to see the same level of support for this legislation in the Senate.”

In a 2017 National Drug Assessment, the U.S. Drug Enforcement Administration found that cryptocurrencies like Bitcoin, Dash, ZCash and Monero —(with Dash, Zcash & Monero being relatively anonymous) — have become increasingly popular payment options for dark web trade. Along with fueling the human trafficking market, they are also funding marketplaces that are contributing to America’s growing opioid crisis, the administration claims.

This though implies that fiat and other methods such as wiring funds wasn’t also prominently used in human trafficking, drug trafficking and other crimes on the Dark Web. Cryptocurrencies aren’t new just this year, and have existed since 2009, Bitcoin being the most prominent. But of course the Deep Web existed before 2009, and was active and full of crimes and trafficking prior to Cryptocurrencies birth.

This investigation also implies that governments like the US don’t sell weapons to Dictators and genociders ,which we have seen a track record of throughout history. So the governments readiness to blame cryptocurrencies solely for crimes on the Dark Web is biased set to fit a narrative that ‘only the government can commit illicit crimes’.

The growing American opioid crisis also comes after the US illegal invasion and occupation of Afghanistan (which they remain in to this day).

What do you think? Yes cryptocurrencies are being used to commit crimes, but Fiat and gold bars also have track records of being used to commit crimes, both on the Dark Web and on the government level. Should we not then first deal with Fiat’s crisis with money laundering and crimes deals?

Cheers,
A.Yasir

John McAfee’s Not Dead

He’s Alive & McAfee’ing It

The crypto internet was a buzz these last few days after Cyber Security & crypto-expert John McAfee posted a picture of him at the hospital, after what he says was an attempted poisoning to end his life. He went on to say:

“My enemies managed to spike something that I ingested,”
“However, I am more difficult to kill than anyone can possibly imagine. I am back.”

johnmcafeescreenshot2

He’s been tweeting from the hospital, to let his fans and supporters know he’s alright and in stable condition in typical John McAfee style- strong, ‘no shit’ and in your face.

He bashed on panic sellers and continues to promote Docademic and even sent out a mini witch hunt for this guy.

johnmcafeescreenshot1

In all, John McAfee is in good spirits, back in the comfort of his home, and keeping it real for the cryptocurrency community. It’s left to see if this ‘assassination’ attempt pans out with any evidence given to the general public. But if this was indeed an assassination attempt, the implications are horrendous. It gives weight to McAfee’s position in cryptocurrency and his declaration for 2020 presidential candidate.

For now, I’m wishing Mr. McAfee a full recovery.

Cheers,
A.Yasir

BITCOIN’S VALUE WAS FRAUD?

 The Coordinated Manipulation
According to research done by Professor John Griffin of Texas Finance, last years epic rise for Bitcoin was actually done by coordinated market manipulation.

Professor Griffin goes on to explain that he examined millions of transactions on cryptocurrency exchange Bitfinex, and says that “the US dollar pegged cryptocurrency Tether was used to buy Bitcoin at the times that the latter was falling- which helped ‘stabilize and manipulate’ the price”

First I’ll explain what Griffin’s said, and then I’ll explain why he’s wrong about Bitcoin but right about Tether. And it boils down to his understanding of how Exchanges work and how Bitcoin works.

Griffin said “Fraud and manipulation often leave footprints in the data and it’s nice to have the blockchain to track things,” Griffin told CNBC. Whenever bitcoin fell, Tether was used to buy it to prop up the price again.

“It was creating price support for bitcoin and, over the period that we examined, had huge price effects. Our research would indicate that there are sophisticated people harnessing investor interest for their benefit.”

Bitcoin started 2017 at below $1,000 and by Dec 2017 hit 20,000. But as if February to June 2018 it’s been jumping back and fourth from it’s lowest at $6k to the highest $10k (which didn’t even last)  Tether is the 11th largest cryptocurrency and is pegged to the US dollar. Some critics say Tether owners don’t have enough fiat currency to back its $2.5 billion market capitalization.

Bitfinex CEO J.L. van der Velde told CNBC that neither the exchange nor tether helped to boost bitcoin prices. “Bitfinex nor tether is, or has ever, engaged in any sort of market or price manipulation. Tether issuances cannot be used to prop up the price of bitcoin or any other coin/token on Bitfinex,”

Now here’s what I think:

I’ve personally used Tether but I do worry about it. A lot of people have accused Tether of fraud, and Tether certainly hasn’t proven the naysayers.  Do they have the 2.5 billion USD and how are they raising funds?  Essentially as far as I can see, Tether is a non-backed, way of essentially printing virtual USD.  I think Griffin is way off on this one.  USDT (Tether) is a convenient trading pair that can be used with some of the top cryptocurrencies to trade and exchange directly for other coins.

The issue is that a lot of people don’t realize most tokens and currencies are not directly convertible or tradeable for others on exchanges.  Generally you’ll have to sell your ABC alt-coin or tokens for Bitcoin, or USDT and then use the major currency you sold or exchanged to buy say another coin such as Ripple, Litecoin, Lisk etc..  So this is where USDT comes in, if Griffin thinks it propped up Bitcoin I think he is misunderstanding how the exchanges work.  Yes a lot of people are using USDT to buy other currencies but is USDT a market factor?  No, I don’t think so, it’s just simply convenient and I agree with Bitfinex that it doesn’t appear they are using it to prop up Bitcoin.

However, USDT could not be used in such a way if it wasn’t given prominence and primary trading pairs like Bitfinex and other major exchanges have used.  Could some of the exchanges be in cahoots with currencies like USDT and others?  Absolutely, and this is the more likely scenario of market manipulation in the sense that they essentially largely control which currencies fail and flourish.

Any coin that is used as a primary trading pair or in other words directly convertible has more value and will intrinsically be used more as a vehicle to buy coins like Bitcoin.

I think Griffin just raises the simple question about USDT being a fraud and this is the biggest concern but I highly doubt USDT’s existence or trading patterns are responsible for Bitcoin fluctuations directly.  He may derive this from trading patterns but I really just think USDT is a convenient and easy to understand intermediary trading pair vs how you wrap your mind around how many BTC another coin like Ripple, Ethereum or Litcoin is worth etc…

What do you think?

Cheers!
-A. Yasir

Ripple Wants Government Regulation of Cryptocurrency

I have always believed regulation was inevitable and this is actually one of the reasons I invested in Ripple.  It’s no surprise that they are calling for regulation as they benefit the most.  As worried about them as I am (saving for another article) this is an excellent hedge against this inevitability.  Ripple stands to profit from this as it already has very good relationships with big finance and governments.  Any regulation is very likely to benefit Ripple the most.

Ripple’s, Ryan Zagone, ironically titled, “head of regulatory relations” has called on the UK to adopt 3-regulatory moves and has suggested they take a cue from Japan.  This is both good and bad, regulation, if fair and easy to follow can remove uncertainty and strengthen the countries that do it right.  I think Japan is a good example of regulation that has gone right and helped cryptocurrency flourish.

Zagone has called on the three issues to be regulated “namely consumer protection, financial stability and anti-money laundering “.  Consumer protection is a given and I wonder why no one has also said “insurance coverage” as this would take most of the risk out of holding cryptocurrency and the risk of theft and hacks.  When it comes to “financial stability” it depends on what he means and what the UK government would take it to mean?  I would take it that this would be the part that would help out Ripple and possibly stunt the growth of competitors to Ripple.  When it comes to anti-money laundering this is a given but again, how do you do it without harming or offending law abiding citizens?  Or will these laws and regulations be a pretext for both Ripple and Big Banking to squash the abilities of everyone else?

The UK Central Bank’s, Mark Carney has said the following about cryptocurrency.

  • “The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system. Being part of the financial system brings enormous privileges, but with them great responsibilities,” Carney said in a speech on Friday.
  • “A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system,” Carney said.
  • Carney also slammed the ability for cryptocurrencies to fulfil the role of money, saying they are “failing” as a medium of exchange and are “proving poor short-term stores of value.”
  • “This extreme volatility reflects in part that cryptocurrencies have neither intrinsic value nor any external backing. Their worth rests on beliefs regarding their future supply and demand —ultimately, whether they will be successful as money.”
  • “At present, in my view, crypto-assets do not appear to pose material risks to financial stability,” Carney said.

Well, Mr. Carney was as honest as he could be, from the banking sphere and without losing his job.  I agree that there is almost nothing backing most cryptocurrencies, aside from mining investment.  However, this is about the same, if not better than fiat which is printed without any backing of assets since the gold standard has long been abandoned.  But let’s read between the lines, he wants regulation and he wants cryptocurrency held to the same standards as traditional finance, but at the same time slams it as being a poor store of value (like Soros who now says he’s investing).  Regulation will be tricky, because you are then giving all cryptcurrency legitimacy as currency by regulating it as such or even to traditional financial standards.

Everyone has their own interest in all of this but it will be interesting to see how this plays out.  The game is different now and governments cannot easily seize crypto assets, nor can they shutdown major players who can move away from their jurisdiction with the click of a button.  If smart people are in charge of regulation they will do it right, but if bankers alone are involved, and continued to feel threatened, I predict carnage, and that it will ultimately harm or even topple our current financial system.

Let’s hope things go smooth and that regulators are not influenced too much more when it comes down to it.

 

NEM Gives Up Chase for $500M USD in Stolen Coins

For no apparent reason NEM has given up the chase for these coins.  In all fairness I don’t think it was ever their issue, the stolen coins were the fault of the Coincheck Exchange’s security and not due to any flaw in the NEM client or network side.  Of course naturally they were interested but one bold prediction is that “hackers would not be able to launder the coins due to lack of liquidity”.  I am not sure if the NEM developers really believed that or if they thought heat on the exchanges would dissuade or slow the thieves down.  I suspect they exchanged the NEM for other coins and then sold them back again clean through multiple exchanges.

I would say this isn’t bad for cryptocurrency because bank heists occur each day and nothing stops one from spending or exchanging the money in real life.  It’s really no different than the initial fears of “e-commerce sites were hacked” just as real life stores have theft and holdups everyday.  It is just a matter of mitigation whether physical or virtual.

But with that aside NEM clearly said they were ending the chase and wouldn’t say much more due to the “sensitivity of the investigation”.  This is something I find a little strange, is it that they did find something but the authorities have forbidden them from disclosing it?

Was this an inside job on the part of Coincheck in Japan or was it something else explosive that they found?  Could it have been a rival currency, bankers or government behind the hack?  Anything is possible and speculation will rightfully run abound until more details emerge.