Tag Archives: Cryptocurrency

Bancor Criticized for Untested Code After $150 Million ICO

Bancor Criticized for Untested Code After $150 Million ICO

The Bancor Network, a blockchain project endorsed

by prominent billionaire investor Tim Draper, recently raised $150 million in an initial coin offering (ICO). However, the development team behind Bancor was criticized for the abrupt extension of investment period and its untested code.

On June 12, Bancor extended the investment timeframe of its ICO by three hours due to supposed attacks on the Ethereum network.

The Bancor team stated:

“BNT allocation event minimum time extended TO THREE HOURS due to massive malicious attacks on network & resulting pending transaction bottleneck.”

The majority of the cryptocurrency community immediately criticized Bancor for the extension as early investors who purchased BNT, the native token of Bancor, either attached incredibly high fees or rely on digital finance brokers such as Bitcoin Suisse to ensure the purchase of BNT went through. “I paid money to be sure I got in via Bitcoin Suisse. Now two more [hours]? Seriously?,” said one of the many early investors who felt that the alterations of the rules of the Bancor ICO were unfair to its investor.

Reputable bitcoin investor and analyst WhalePanda also harshly criticized the controversial decision of the Bancor development team, explaining that the Bancor Network dismissed its early investors by extending the ICO timeframe by three hours. More importantly, George Hallam, Ethereum-based asset management platform Melonport AG’s head of business development, noted that Bancor did not provide real evidence to prove the legitimacy of the attacks. Hallam also emphasized that Bancor decided to extend the deadline when its ICO already raised $60 million, which was already a large amount of capital raised for a software company that had not fully completed alpha testing of its software:

“Pretty ridiculous to extend when there was already $60 million raised. Also, haven't seen any real evidence of actual attacks on the network."

The status of the Bancor Network regarding technical development was a key discussion point amongst experts and developers including Andreas Antonopoulos and Augur founder Joey Krug. Almost immediately after the settlement of a $150 million funding round via its ICO for Bancor, Krug stated that the core software of Bancor was tested in Augur’s beta tests a few years back. Krug revealed that Bancor’s vision did not work out in the early stages of Augur and that the market invested $150 million in an untested project. “Dear God the free market just gave $150M to something we found out didn't work in practice in the Augur beta,” said Krug.

Antonopoulos brought up a similar point as Krug, criticizing Bancor’s untested code and the sheer overvaluation of its ICO. Even on its official blog post dated June 11, Bacor Foundation chief technical officer Yudi Levi explicitly emphasized that it plans to run a one-hour minimum fundraiser. Without the three hour extension, the foundation still managed to secure a $60 million investment, which experts argue was more than enough for a company that had not pushed its software through alpha testing.

Still, despite the criticisms, Bancor aims to continue the development and roll out of its software by storing $150 million multi-sig wallets instead of smart contracts to avoid the DAO case in 2016. “All contributions will be deposited directly into multiple field-tested, industry standard multi-sig wallets in order not to keep too much ETH in any single point of failure. Following the fundraiser, some of the ether will be distributed between several crypto-safekeeping services, again in order to avoid any single point of failure,” said Levi.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

As Crypto Markets See Slowing Growth, Traders Look Long


In the notoriously volatile cryptocurrency markets,

it can be easy to get caught up in small price fluctuations. However, advocates of the technology have advice for those who may have had their interest sparked by the combined market's meteoric rise above $100bn this year. Amidst a broader pullback in cryptocurrencies, investors can benefit from focusing on the technology's long-term trajectory, analysts say.

Iqbal Gandham, managing director at eToro, told CoinDesk:

"If you believe that bitcoin is the future of money, and that ethereum is the future of the internet, then you should be investing in the long term."

Gandham is certainly not the only market observer who advocated long-term investing instead of short-term trading. Jacob Eliosoff, a cryptocurrency fund manager, offered similar input. Accurately predicting what the markets will do in the short term is very difficult, he told CoinDesk, and attempts to time the market are "not for most of us". Eliosoff emphasized that while he has been expecting a pullback in certain cryptocurrencies, he is bullish on the asset class in the long-term.

Ether's appeal

That doesn't mean those involved don't have theories about where the best long bets can be placed. As noted by CoinDesk earlier this week, ether, currently the second-largest cryptocurrency by market capitalization, has been catching up with bitcoin in terms of its total market value. At the time of the report, ether's market cap was more than 80% of bitcoin's, according to data from CoinMarketCap. As such, traders like Whaleclub's Petar Zivkovski suggested those who are new to the markets should do their best to internalize ongoing narratives while attempting to understand the value propositions of any coin. "Ether has also become a true contender over the past few months when it comes to market cap," Zivkovski told CoinDesk. One result of this large market cap is greater liquidity, which has in turn reduced the currency's volatility and made it more appealing relative to many other alternative asset protocols.

Big sell-off?

Of course, looking long is easier said than done given the nascent nature of cryptocurrencies. For example, bitcoin's ongoing scaling debate appears to be intensifying, heightening trader sensitivity over fears the network could fork. Arthur Hayes, CEO of Hong Kong-based exchange BitMEX, for instance, sees this situation as one that could be "bad news" for the market as a whole. "With the 1st August UASF deadline approaching, I believe we will be range bound. There is a lot of uncertainty amongst traders about the event," he said.

Eliosoff also spoke to bitcoin's scaling challenges, describing the tensions that exist within the bitcoin community as "worse than ever" given that efforts like UASF could lead to a blockchain split. He explained how these difficulties have made other assets – particularly ether – even more attractive. "Given those deep hostilities in bitcoin, if I could only hold one coin right now it would be ether – even at these prices," he remarked. Still, in this light, eToro's Gandham noted that the small dips in the price of assets like ether are perhaps best viewed in context,


"Whilst the recent drop in the price may look like a crash … it’s more accurately viewed as a bump in the road."


Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

Venezuelans Continue to Seek Refuge in Bitcoin, Other Cryptocurrencies

Venezuelans Continue to Seek Refuge in Bitcoin, Other Cryptocurrencies


It’s no secret that Venezuela is in an economic tailspin.

The country famously sought to end corruption
(a la India in November 2016)
by removing the 100 Bolivar note from circulation.

The widespread panic that the already nearly valueless currency would now be worthless led to massive lines and protest from citizens seeking the protection of assets. At that time, many Venezuelans began seeking refuge from the economic turmoil by investing in cryptocurrencies. The market responded and Venezuela’s first Bitcoin exchange was opened. However, according to a recent report by Bloomberg this week, the demand for cryptocurrencies in Venezuela has continued to soar. This week’s trading volume on Bitcoin soared again to over $1.3 mln, nearly doubling the levels from two months ago.

The volatility of cryptocurrencies is minimal, compared to the massive devaluation of the country’s local currency (6000 Bolivars to $1). But cryptocurrencies are not only being used for safe haven investments. Consumers are also using Bitcoin and others as a means of settling accounts and continuing business in the uncertain and volatile economy. Because cryptocurrencies are decentralized, they are seen as a simple and safe solution to the need for stable currency in countries where government practices have destroyed currency values.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

Goldman Sachs Predicts Bearish Movement for Bitcoin Once It Reaches $3,100

Goldman Sachs Predicts
Bearish Movement for Bitcoin
Once It Reaches $3,100


Banking giant Goldman Sachs has recently warned its clients

that the Bitcoin may halt in its bullish movement and head for a bearish movement very soon, according to a report by Interactive Investor. While the company that does not regularly monitor cryptocurrency news, it recently expressed its own opinion regarding Bitcoin in its report called Blockchain Unchained on June 12, 2017. According to the bank, once it reaches its high at over $3,100, there would be an expected fall because of its continuous bullish movement.

Bitcoin price slides

According to ZeroHedge, there is an expected reversal once it reaches its all time high. This is because he claims that the oscillator shows negatively which indicates an eventual bear movement. In fact, recent movements in Bitcoin price shows trends of it going lower than the highs that it has accumulated over the past weeks essentially reaching a ten week low of $2,547.

With this in mind, Bitcoin is expected to further drop in value as the weeks go by. Bitcoin is not the only cryptocurrency that hit a low. In fact, other cryptocurrencies have hit a low red mark including the the second contender to Bitcoin, Ethereum, which has also reached a low of $361 after it went over $400 in its last all time high. In fact, almost all the cryptocurrencies experienced lows this week so it could be a market correction which frequently happens in other financial markets such as the stock market. However, with this movement, it does seem that the prediction of Goldman Sachs may be right on cue with their prediction of a bearish market.

The Ethereum takeover?

While Ethereum has also been experiencing price correct along with Bitcoin, it seems that Bitcoin’s drop is much lower than that of Ethereum. This might be an indication that Ethereum is set to overtake the Bitcoin this year. According to report by Market Watch, the value of Ethereum is rapidly increasing in an uptrend although there are occasional drops. The Bitcoin, on the other hand, is remaining quite steady with a big price drop which may be a chance for Ethereum to take over.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

Recovery Begins: Cryptocurrencies Regain Chunks from Thursday Bloodbath

Recovery Begins:
Cryptocurrencies Regain Chunks from Thursday Bloodbath



Cryptocurrencies staged a recovery yesterday

following the massive fallout that occurred the day before. The top 100 cryptocurrencies all posted gains except for five, none of which have more than $130 million in market capitalization. Cryptocurrency prices continue to follow market leader bitcoin. The post-fallout correction began early Thursday around the time Bitmain announced it said the bitcoin network was at a high risk of being split. Bitcoin’s price recovered around from its $2,150 low yesterday to $2,521.28, but it is still almost 20% below its all-time high at $3,000.

Bitcoin’s Market Share Slips

Bitcoin’s market share fell to a historic 40% low, with Ethereum now above 30%, according to coinmarket.com. Ethereum’s recovery was stronger than bitcoin’s, moving to $372.79, gaining 13.82 points in the last 24 hours, almost fully recovering the 16.04 points in lost in the prior 24 hours. Ripple, a distant number three with a $10 billion market capitalization, posted one of the weaker recoveries, gaining only 3.78 points after losing more than 12% the previous day. NEM, number four posted a 7.91 point gain after falling 17%. Litecoin, number five, had one of the healthier recoveries at 15.11 points, more than recovering the 7 points it had lost. Ethereum Classic, number six, gained 7.33 points after losing 13.77.

IOTA, number seven, posted the biggest 24-hour recovery at 18.77 points, but that was after suffering the biggest loss of all currencies in the previous 24-hour period, falling 36.5 points. Dash, number eight, the only other cryptocurrency with more than $1 billion market capitalization, regained 9.22% after losing 13.62%. Total market cap today was $107.691 billion.

How Serious A Correction?

Bitcoin saw a massive drawdown of $850 since the all-time high on Monday. So far, the correction is actually pretty tame considering there was a $920 correction just three weeks ago, noted analyst Mate Cser. Bitcoin looks bearish compared to Ethereum, Dash, and Litecoin, with the $2,450 level and the short-term trendline at $2,500 providing resistance. Ethereum is likely to outperform bitcoin, even if the correction has more fuel in the coming days, Cser noted. Ripple continued its consolidation during the correction, falling below the 0.22 support and testing the 0.20 level in the process. Litecoin quickly recovered to the key $30 level once again, proving its relative strength against bitcoin, and the strong support below the current price. The coin is in a new uptrend after breaking out from the long-term consolidation pattern.

Market Correction Was Expected

Some observers have credited this week’s market correction to Bitmain’s announcement the bitcoin network is at a high risk of being split, but the correction has been predicted for several weeks. Analyst Nicola Duke of Forex Analytix predicted big corrections for both bitcoin and Ethereum in late May. Duke said bitcoin could experience a 46.5% price correction at $2,800 after witnessing a record $2,791.70 high in late May. After reaching $2,800,

Duke predicted it would fall and reach as low as $1,470, marking a 46.5% drop from the late May price. The analyst expects the correction to be temporary, with the price recovering, and continue its upward movement through 2018. An analysis called the Fibonacci retracement examines the peaks through different periods of up and down movements to determine future asset prices. Short-term traders are advised to wait until the correction runs its course and the short-term trend turns higher again, while long-term investors should prepare to add to their holdings heading towards the targets of the move and buying opportunities emerge.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.


Coinsilium Invests in Blockchain-Based Professional Network Indorse

Coinsilium Invests in Blockchain-Based Professional Network Indorse

Singaporean blockchain startups are continuing to attract more investors

to this emerging sector. On June 9, early-stage startup accelerator Coinsilium announced a SGD$100,000 ($72,500) investment in Singaporean blockchain-based Linkedin-like professional network Indorse.

According to the official press release, the deal was secured with the issuance of a convertible loan which granted Coinsilium an undisclosed number of the native tokens of the Indorse blockchain network. Essentially, the deal was settled in a way similar to how Initial Coin Offerings (ICOs) are conducted within the cryptocurrency market except in a private manner. In a publicly disclosed ICO, a certain number of native tokens of a blockchain network are up for sale within a limited timeframe. For instance, most recently, the Bancor Network deployed on top of the Ethereum network raised $150 million within a three-hour timeframe by issuing its unique native tokens to investors.

Instead of conducting a public ICO like most Ethereum-based blockchain projects and companies have done in the past few months, Indorse opted to carry out a private ICO-like deal with an early-stage accelerator to facilitate its growth and scale proportionally in the Singaporean market. Eddy Travia, the CEO of Coinsilium, revealed that Indorse will serve professionals as a monetizable platform. Users on the Indorse blockchain-based professional network will be able to earn reward tokens by sharing their skills and activities.

More to that, 21 Inc, which raised $116 million from an all-star team of early-stage investors, switched its main service or product from 21 Inc computer-based applications to a bitcoin-accepting inbox that allows users to receive an email response from other users in the network by paying a reward at a price set by the email respondent. The company released this service due to the lack of incentive provided by existing platforms such as Linkedin when responding to messages and invitations. Indorse can also include 21 Inc’s bitcoin-based inbox product by utilizing its native tokens and its blockchain network. If its blockchain focuses on flexibility rather than security like the Ethereum network, it will be able to introduce a wide range of applications and features for professionals.

“Indorse will also allow users to profit from sharing their skills and activities on the platform via reward tokens. This is a new and game-changing model in a multi-billion-dollar social media industry, and we are confident that Indorse has the requisite skills and talent to propel Indorse to become one of the world’s most popular decentralized social platforms,” said Travia. David Moskowitz, Co-Founder, and CEO of Indorse explained that the long-term vision of Indorse is to position itself at the forefront of tokenization and decentralization. It aims to target the Singaporean market in the beginning and gradually expand


“Indorse has the aim to revolutionize professional social networking using new models of tokenization and decentralization and we believe that Coinsilium’s expertise and deep knowledge in this space will be a strategic advantage to reach our goals."

On March 6, CB Insights released a report entitled “Global Ledger: Mapping Bitcoin & Blockchain Startups Around The World” which revealed that Singaporean blockchain market stands behind US and UK as the third largest blockchain industry in the world. If Singaporean blockchain and bitcoin startups such as Indorse continue to raise the interest of early-stage investors in both Asia and internationally, Singapore will continue to lead the Asian market as the continent’s blockchain hub.

The Few Ways To Fund Your Blockchain Project

The Few Ways To Fund Your
Blockchain Project

The success or failure of an entrepreneurial venture

is closely tied to how much liquidity the startup has. That is no different in the bitcoin economy. You can be developing the most innovative world-changing technology but if you run out of funding you will have to close shop no matter what. Fortunately, nowadays, there are several ways to fund your blockchain project that does not involve begging your bank for a loan.

Here, you will be introduced to these popular alternative ways to fund your blockchain venture that could make the difference between your project failing or succeeding.


The easiest and most hassle-free way to fund your startup venture is by bootstrapping it, if you and your team of developers are in the position to pool your own funds together to get the project off the ground. The benefits of funding your startup yourself is that you have no outside shareholders or private investors to answer to. Furthermore, by bootstrapping your project you are not diluting your share in the company, which may one day be worth a lot of money.

Venture Capital

One of the more traditional ways for startups to receive funding is to pitch their idea to venture capital funds that are looking to invest in promising startups. Access to venture capital funding for tech firms, especially fintech firms, has been relatively easy in the last few years. Not only because there has been in a boom in both tech and fintech, but also because investors are looking for higher returns than they can currently get in the stock and bond markets.

Venture capital funding from leading blockchain VCs such as the Digital Currency Group, Blockchain Capital, Union Square Ventures, and Ribbit Capital, would not only give your project a financial boost but would also give your startup a certain degree of industry approval. This, in turn, can help to secure further funding down the road. Having said that, having venture capitalists as investors also means that you will have to generate a profit sooner than later as investors want to see returns. Also, some VCs like to take a more hands-on approach with their investments, which could mean you as a founder may not be calling all the shots anymore.


If your own funds will not suffice to get the project off its feet, however, then you need to look at other options. One of these options is crowdfunding. Crowdfunding refers to the raising of capital from a number of private individuals who contribute small amounts to the project, usually through the use of an online crowdfunding platform. When it comes to crowdfunding, there are three main types: reward-based crowdfunding, donation-based crowdfunding, and equity-based crowdfunding.

Rewards-based crowdfunding as the name suggests rewards those who fund the project or startup with rewards. Rewards can come in the form of a handwritten thank you letter to a mention on the startups websites to early access to the startups upcoming product. One of the most popular rewards-based crowdfunding platforms is U.S.-based Kickstarter. Donation-based crowdfunding is usually found in the non-profit sector and is a way for individuals or NGOs to fund a charitable project that they are launching. In the for-profit space, donation-based crowdfunding is rather rare.

Equity-based crowdfunding rewards investors with a small share in the company that they are funding. Hence, instead of having to go public to raise money from private investors, startups can leverage online equity-based crowdfunding platforms such as Crowdfunder, CircleUp, and WeFunder. Interestingly, the crowdfunding platform WeFunder has started to accept bitcoin as a payment method for making contributions to crowdfunding campaigns, which makes it an interesting funding source for those looking to tap into the bitcoin community to raise capital.

Peer-to-Peer Loans

If you do not like the idea of giving away a share of your company to outside investors and are comfortable to take on debt to fund your project, you could apply for a peer-to-peer loan. Peer-to-peer loans are a form of debt financing that involves several individuals lending money to a startup or an SME via an online peer-to-peer lending platform.

To secure a peer-to-peer loan you have to apply to have your funding requirements listed on a peer-to-peer lending platform such as LendingClub and Prosper. Once your funding requirements and terms and condition are agreed upon by both the startup and the P2P lending platform, the loan is listed and individual investors can fund it. Once the loan is fully funded, the startup receives the funds and repays the money plus interest over the term of the loan in monthly installments. All payments are handled through the peer-to-peer lending platform. Peer-to-peer loans are an excellent form of financing for those who are struggling to receive a bank loan, which is the case for many bitcoin startups, and for those who prefer not to give away equity in their new company.

Initial Coin Offerings

Finally, probably the most popular method of funding a new blockchain project today is through an initial coin offering. Initial coin offerings, also known as token sales, crowd sales, and initial public coin offerings, are a new way of funding startup ventures through the sale of a digital token. These digital token, also known as cryptocurrencies or cryptoassets, then act as an indirect stake in the project and, therefore, indirectly tracks the performance of the startup. In that sense, ICOs are similar to stock IPOs with the key difference being that the investors do not hold actual equity in the company. Instead, a digital token that is indirectly linked to the project’s performance.

From the company’s point of view, ICOs are an excellent way to raise funds without actually having to give away equity in the company while not having to resort to debt financing.  While launching your own digital token may seem daunting to some, there are platforms such as TokenMarket that will handle the entire process for you for a fee. Thereby, making fundraising via an ICO accessible to anyone looking to launch a new blockchain project.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

Stockholm will Host the First Large Conference on Cryptocurrency and Blockchain

Stockholm will Host the First Large Conference on
Cryptocurrency and Blockchain

On September 7, for the first time,

the Swedish capital will host a large conference dedicated to blockchain technology and cryptocurrency.
The event is a part of Blockchain & Bitcoin Conference, which is the first and the largest network of crypto conferences in Europe. Organizer is Smile-Expo that holds similar events in the Czech Republic, Estonia, Russia and Ukraine. Key topics include implementation of blockchain technology in business, legal regulation of cryptocurrencies (practices of various jurisdictions), increase of living standards using new technologies, development of smart contracts in the decentralized economy.

Special attention will be paid to the blockchain development in FinTech. Participants will analyze already existing blockchain-based projects in the banking sector; there will be a lot of analytics and discussions. In autumn 2016, the Central Bank of the country announced its plans for the development of a national crypto currency. These plans may be implemented in two years. The Swedes use traditional money more rarely; since 2009 the amount of coins and cash in Sweden was reduced by 40 percent.

Blockchain development in the country is supported by the government; in 2016, there was an experiment on transferring records on land ownership right in the digital format. The project involved the blockchain-based technology of smart contracts. In addition, Nasdaq Stockholm exchange issued the first bitcoin-based security. The Bitcoin Tracker One asset received a certificate of the governmental financial regulator and was accepted for trading. In June, the Swedish project on blockchain implementation in energy sector was launched. A department of government corporation Vattenfall together with 20 European companies started the development of a blockchain platform for electricity trading.

These and other blockchain projects will be discussed by the participants of Blockchain & Bitcoin Conference. According to the organizers, participation in the conference is already confirmed by Eric Benz, the Managing Director at the Bitcoin debit cards issuing company Cryptopay, Frank Schuil, CEO at Safello bitcoin exchanges and Karolina Marzantowich, the Leading Developer of Polish branch of IBM. Together with the conference, there will be an exhibition of crypto hardware, software and services for the industry.

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

Bitcoin-Ethereum Flippening Fervor “Makes No Sense,” Claims Vinny Lingham

Bitcoin-Ethereum Flippening Fervor “Makes No Sense,” Claims Vinny Lingham


Both bitcoin and ether prices fell today,

putting off what many traders consider inevitable—the “Flippening.” The Flippening, of course, refers to the potential future date when Bitcoin could lose its status as the largest cryptocurrency by market cap. Many coins have tried to usurp Bitcoin through technical innovations, corporate partnerships, and marketing strategies, but Bitcoin has continued to reign supreme.

Only recently has the Flippening become a real possibility. As the ether price has surged to a high of more than $400, Ethereum has become the first cryptocurrency to get within striking distance of Bitcoin’s market cap. Many crypto-pundits have begun to ponder what will happen if the Flippening does occur. Will it be the beginning of the end for Bitcoin? Will the Ethereum platform finally take the blockchain mainstream?

The Flippening “Makes No Sense”

Others, such as Gyft co-founder and Civic CEO Vinny Lingham, believe those questions are meaningless and irrational.

As he stated on Twitter:

Bitcoin is better money, deflationary & scarce. Ether is not really money, inflationary & abundant. The flippening makes no sense[.]

What Lingham’s tweet alludes to is that, strictly speaking, Bitcoin and Ethereum are not competitors. Bitcoin is designed to function as a currency (which is why Bitcoin nodes validate addresses), while ether is meant to serve as fuel for Ethereum’s decentralized smart contracts platform; this is why the developers of Ethereum refer to ether as a “token” and advise it is not intended to be used as a currency. However, that warning has not stopped people from treating ether like a currency.

Lingham notes bitcoin derives its value from its scarce and deflationary nature. Ether, in contrast, is inflationary. Ether issuance is capped at 18 million per year (the move to Casper should decrease that number further), so the rate of inflation will decrease every year, but the token will remain inflationary to some degree. Ether’s inflationary nature has proved unpopular with some Bitcoin proponents, many of whom were first attracted to cryptocurrency because of Bitcoin’s “digital gold” nickname. Flippening numbers on Thursday.Additionally, as Lingham points out, there are already far more ether in circulation than bitcoins (~92.5 million ETH to ~16.4 million BTC).

What is Money?

Lingham’s tweet triggered a litany of replies (more than 130 at the time of writing). Lightning co-founder Elizabeth Stark ascribed the Flippening to short-term ether speculation. She stated that “Users and real use cases are what will matter,” not short-term market cap rankings.

Before long, the thread had devolved into arguments about the fundamental nature of money. BitPoint CEO Aaron Foster, for instance, argued that Ethereum will surpass Bitcoin’s market cap and that to deny that ether is money is “stupid,” even though Ethereum nodes do not validate addresses. “What is money?,” he asked. Olivier Janssens rejected the assertion that Ethereum cannot serve as a store of value.  Others compared ether to the U.S dollar (both favorably and unfavorably) and pushed back against Lingham’s assertion that deflation is a positive attribute for a currency to have. In any case, the Flippening frenzy should serve has a reminder that no matter how technologically-advanced humanity becomes, it will likely never reach consensus on one of the society’s most fundamental questions: “What is money?”

Chuck Reynolds

Marketing Dept

Please click either Link to Learn more about -Bitcoin.

It’s a Cryptocurrency Bloodbath

It’s a Cryptocurrency Bloodbath



The market correction that a number of analysts have predicted

has hit, with leading cryptocurrencies losing in double digits in the last 24 hours. Market leaders bitcoin and Ethereum were not among the biggest losers, dropping 12.81% and 16.04% in the last 24 hours, respectively, but their market cap losses were in the billions, falling to $37.4 billion and $28.9 billion, respectively.

Ripple, a distant number three in market capitalization at just under $10 billion, lost over 12%. NEM, number four, lost over 17%, while Ethereum Classic, number five, lost 13.77%. Litecoin, number 6, suffered the least among thbillion-dollarar players, losing just over%. Eighth placed IOTA was the biggest loser among the cryptocurrencies with more than $1 billion in market capitalization, falling 36.5% when its price fell to $0.38.

Survivors A Few

All top 100 cryptocurrencies tumbled in the last 24 hours, according to marketcap.com, except for four: Quantum Resistant Ledger, the number 41 cryptocurrency with $81.4 million market capitalization, jumped 19.43%; LBRY Credits, number 57, posted an 18.24% gain; Xarum, number 62, gained 10,4%, and ZCoin, number 69, gained 9.58%. The correction that began Monday continued after a breather yesterday, as bitcoin failed to launch a new rally towards all-time highs and rolled over after the bounce. Correlations are high once again, as is usual for a correction, and it’s likely that bitcoin and Ethereum will dictate the trend of the coming days, with small cap coins following the majors lower.

Further Losses Expected

Bitcoin continues to trade near its lows from Monday, and it will likely head for a test of the $2375 level, as it clears its overbought momentum readings. The rising long-term trendline is found near $2200, providing further strong support. The long-term picture remains bullish, but there is room for further correction after the strong rally since the end of March.

A 30%-50% correction, that has been the normal for bitcoin in the past, is a huge psychological burden that makes a panic sale likely, usually just before the bottom. Because of this, buyers are advised to wait for the correction and oversold readings, even for those planning to buy it at a higher price later on. Analyst Nicola Duke of Forex Analytix predicted hefty price corrections for both bitcoin and Ethereum in late May. Duke said bitcoin could experience a 46.5% price correction at $2,800 after witnessing a record $2,791.70 high in late May. After reaching $2,800, Duke predicted it would fall and reach as low as $1,470, marking a 46.5% drop from the late May price.

Duke expects the correction to be temporary, with the price recovering, and continue its upward movement through 2018. An analysis called the Fibonacci retracement examines the peaks through different periods of up and down movements to determine future asset prices. In “wave two,” in the fall of 2013, bitcoin bottomed out in January 2015 before rebounding for several months and then declining again. It rebounded again in January of 2015. Duke said bitcoin is now in a third wave.

Recovery Expected

Duke expects the fourth wave will see bitcoin stay at 61.8% of the time the second wave lasted. This means the rally following the correction will begin in January. Short-term traders are advised to wait until the correction runs its course and the short-term trend turns higher again, while long-term investors should prepare to add to their holdings heading towards the targets of the move, and buying opportunities emerge. This holds true for long-term investors who plan on holding on to the coins and adding to their core holdings on the dips. Short-term traders should still wait for the short-term trend to turn higher before buying.

Chuck Reynolds

Marketing Dept

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