It was only a matter of time until regulators caught up with cryptocurrency ICOs. These coin offerings have gone unregulated for quite some time now, while raising millions in funding. Anyone buying into these token sales in the US is according to the law buying securities, which require special licenses from the company holding the ICO. With US regulators aiming to venture into the cryptocurrency ICO world, things could get quite interesting moving forward.

Various aspects of cryptocurrency will never be subject to traditional regulation. Virtually all of these projects are decentralized, with no single entity responsible for issuing the coins or controlling the majority of funds circulating on the network. The only entity regulators can go after are the third-party service providers found within the world of cryptocurrency. Wallet providers, exchanges, and investment schemes are bound to see more attention from US regulators moving forward.

Which brings us to cryptocurrency ICOs, the modern-day crowdfunding efforts without regulation or oversight. Everyone in the cryptocurrency world knows how ICOs are growing in popularity and seemingly raise more money than ever before. Projects raising over US$10m in funding are slowly becoming the norm rather than an exception right now. However, there are a lot of legal questions regarding the ICOs and how the tokens are distributed.

It is believed the SEC is currently taking a very close look at any cryptocurrency ICO on the agenda. This does not bode well for most of the projects out there, as very few of these teams have someone with the necessary legal knowledge on board. It is only normal US regulators want to pay close attention to what is going on in this regard, as ICOs can be seen as a way to launder money, in their opinion. A group of people raising millions of dollars overnight without regulation or oversight is suspicious, regardless of how you want to look at it.

The bigger question on peoples mind is whether or not they buy tokens or securities. According to the US legislation, a cryptocurrency token can quickly turn into a security, which causes all kinds of legal issues. If a security is created voluntarily or by accident it needs to be overseen and regulated by the SEC, regardless of its ties with cryptocurrency or otherwise. This confusion needs to be avoided at all costs, but for now, there are no clear regulatory guidelines whatsoever.

Rest assured it will not take all that long until the SEC will introduce some form of cryptocurrency ICO regulation moving forward. For now, it remains anybodys guess as to what we can expect from such a decision. If ICOs are put on the same level as IPOs, things will look very dire for cryptocurrency companies looking at this mechanism as a way to quickly secure funding. Although the SEC is apparently investigating this matter, it may take years until they come to a conclusion.

Moreover, there is the topic of trading these ICO tokens across cryptocurrency exchanges. A lot of tokens can be traded against fiat currencies, which can pose some new challenges as well once regulation materializes. For the time being, the cryptocurrency ICO sector has nothing to worry about just yet. However, this situation could change at any given moment, and a lot of teams will find themselves in an awkward position because of it.

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SEC may be Looking for Ways to Regulate the Cryptocurrency ICO Market - The Merkle

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.

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 its likely that bitcoin and Ethereum will dictate the trend of the coming days, with small cap coinsfollowing the majors lower.

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 afterwitnessing arecord $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.

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.

Featured image from Shutterstock.

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Terror Thursday: It's a Cryptocurrency Bloodbath - CryptoCoinsNews

In a 43-page whitepaper titled Blockchain: Unchained? , Morgan Stanley stated that both investors and regulators view cryptocurrencies as assets than actual currencies.

Morgan Stanley released the whitepaper on Tuesday, however, since the report was not distributed publicly, CCN was unable to get it, for now. Were coveringtakeaways from it, nonetheless, includingMorgan Stanley analysts take that bitcoin needs regulation totake off. Meanwhile, the likes of Bloomberg, Business Insider, and Barrons, analyzed the paper and summarized the most important parts of it.

The analysts, including James Faucette, stated that BTC and other cryptocurrencies, such as Ethereum and Ripple, are more like investment vehicles than fiat currencies that people can spend on products and services. Additionally, Morgan Stanley analysts added that bitcoin represents a marginally more inconvenient way to pay and there are only a handful or reasons to use the cryptocurrency instead of a credit or debit card. The Morgan Stanley report goes by:

Most regulators and investors view cryptocurrencies more as assets than actual currencies. Their values are too volatile and too hard to actually use for payment for most to consider them currencies. Our conversations with some merchants indicate that, while cryptocurrencies might actually be attractive for them to operate their businesses, they find that the cryptocurrencies are far too volatile to be used.

Morgan Stanley reported on both the factors that had driven the value of bitcoin down and up.

One of the main factors, according to the financial institute, is that theU.S. Securities and Exchange Commission (SEC) rejected the Winklevoss twins objective to launch the first-ever bitcoinexchange-traded fund (ETF).

Another reason is the declining trade volume of the cryptocurrency, while the analysts also listed the inspection of Chinas Central Bank on bitcoin exchanges in the country (which involvedBTCC, OKCoin and Huobi).

Morgan Stanley could only list some guesses about the price increase of bitcoin. According to the report, the analysts do not have a clear reason why the cryptocurrency has been on a massive surge.

It is not clear why cryptocurrencies are appreciating so rapidly (apart from the appreciation itself drawing in more speculation against a potentially inefficent ability to sell), the bank said in a note.

The financial institute listed three guesses for the increase of bitcoin. The first one is Initial Coin Offerings (ICOs), which are used by some companies to offer investors digital tokens in exchange for cash. Some firms received loads of fundings using ICOs, for example, the Ethereum-based enterprise management platform Aragon raised $25 million in just 15 minutes.

Secondly, the strict limits on the currency outflows in China makebitcoin popular in the country to bypass such limits, according to Morgan Stanley analysts.

Finally, the increased investments in Japan and Korea also contributed to the surge of the cryptocurrency. Morgan Stanley explains the rising investment in Japan by the recent regulations, however, the bank writes that in Korea, however, there is not a clear explanation for the surge.

Featured image from Shutterstock.

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Cryptocurrencies More Assets Than Actual Currencies, Says Morgan Stanley - CryptoCoinsNews

There are now four times as many cryptocurrencies in circulation as fiat currencies.

That's amazing. And encouraging.

According to the Swiss Association for Standardization, which maintains the International Standards Organization database, there are 177national currencies currently in use. That list generously includes four precious-metals and four bond-market units (codes XBA to XBD, for the curious).

Number of digital currencies

753

TheCoinMarketCapwebsite lists 753 cryptocurrencies, all the way from Bitcoin and Ethereum down to StrongHands and Paccoin (current value: $0.00000014).

With a retired basketball star promoting one such incarnation -- tied to marijuana -- on a recent trip to a repressive Asian nation lying to the north of South Korea, I'm tempted to call Peak Crypto.

But let's not kid ourselves: The madness is far from over. Bitcoin skeptics have been eating their words ever since the leading digital currency reached $1,000. January seems like such a long time ago now that Bitcoin is trading above $2,700.

Bruised Bears

Betting against Bitcoin when it reached $1,000 would have been a costly mistake

Source: Bloomberg

Although Bitcoin has climbed 300 percent in the past 12 months,giving its "coins" in circulation a value of $45 billion, Satoshi Nakamoto's brainchild is actually declining in relative importance. From more than 95 percent in late 2013, Bitcoin now accounts for 39 percent of the value of all cryptocurrency in circulation. Ethereum has caught up fast, from 3.9 percent at the start of the year to 31 percent of the total now, according to CoinMarketCap. Ripple is inthird place at around 8.8 percent after briefly overtaking Ethereum last month.

Virtual Value

Bitcoins in circulation are now worth more than $45 billion with Ethereum close behind

Source: CoinMarketCap

The other 20 percent of cryptocurrency value is unevenly distributed among the 750 wannabes alonga very long tail. It's possible some will rise to a level of legitimacy that will make them viable in the long term. Many are betting not on mass uptakebut on niche acceptance -- one pitches itself as thepayments platform for online games;another limits the amount of coinsto the number of kilometers between Earth and its moon; one seeks to be the official currency of a fictitious nation.

Market Force

Bitcoin remains the world's biggest cryptocurrency, but its dominance has waned

Source: CoinMarketCap

Yet Bitcoin itself remains so nichethat the WannaCry hackers reaped a minuscule harvestafter infecting more than 200,000 computers, because they insisted on being paid in the cryptocurrency.

Just because the boom is ridiculous doesn't mean it lacksmomentum -- it just tells you that consolidation also is inevitable. Not in the traditional M&A sense, but in the way that messenger apps like AIM,ICQ, Yahoo and MSN quietly gave way to WhatsApp and WeChat, which then led to the ubiquity of instant-messagingtechnology.

Morgan Stanley posited last week that government acceptance will be key to Bitcoin's continued rise, with the flipside being some kind of regulation of the currency. That's probably right, and if proponents of cryptocurrencies think they'll achieve widespread uptake without a nod from the authorities, they're probably smoking something.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

To contact the author of this story: Tim Culpan in Taipei at tculpan1@bloomberg.net

To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net

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Getting High on Cryptocurrencies - Bloomberg

Just as Wall Street is paying more attention to bitcoin, a rival is increasingly threatening to become the top dog among cryptocurrencies.

Ethereums market capitalization is nearing bitcoins, as shown in the chart below from CoinMarketCap.

As of Wednesday, bitcoin BTCUSD, -0.93% (shown in orange on the chart) accounted for 39% of the combined market capitalization for all cryptocurrencies, down sharply from 87% on Feb. 25.

Blame the erosion on ethereum (shown in purple), which now makes up 31% of the total market cap, up from just 5% less than four months ago.

If ethereums market cap overtakes that of bitcoin, then The Flippening will have happened. That is the term that many people are using to refer to that shift, according to a post at the Flippening Watch blog.

Bitcoins market cap on Wednesday was around $45 billion and its price was just below $2,800, according to data from CoinDesk and CoinMarketCap. Ethereums market cap recently stood at $36 billion and its price at around $390.

Read more: Cryptocurrencies top $100 billion in market capitalization

Dont miss: 3 reasons why bitcoins surge may not be a bubble

By some metrics, ethereum already has eaten bitcoins lunch.

It has almost five times as many nodes in its network as bitcoin, meaning more people are using their computers to support it, a Motherboard report notes. Ethereum also has more transactions per day, the report adds.

Check out: Ethereum has soared but is it ready for prime time?

But some traders remain skeptical of ethereum:

In the screenshot in the above tweet, ICO refers to an initial coin offering, a new way to raise money. One startup reportedly raised nearly $150 million this week via an ICO.

As their prices have soared, cryptocurrencies increasingly have attracted the attention of Wall Streets analysts.

A Goldman Sachs technical analyst issued a bearish take on bitcoin earlier this week, leading the Zero Hedge financial blog to quip that probably means that bitcoin is set to make new all-time highs shortly.

Meanwhile, Morgan Stanley analysts have predicted that cryptocurrencies will not rally that much more unless they get governmental acceptance, including more regulations.

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How cryptocurrency ethereum looks set to overtake bitcoin in one chart - MarketWatch

ATB Coin offers investors a unique opportunity with its ongoing ICO

With the wildly successful press reception of ATB oins U.S. introductory launch last Thursday, the companys Management Team is reporting over $12 million has been raised within the first fifteen minutes of the cryptocurrencys highly-anticipated ICO.

According to CEO Edward Ng, the companys technologically revolutionary cryptocurrency has already attracted excited investors from the United Stated, Canada, and China. Edward Ng further elaborated the company is pleased with such a high level of interest and optimism from investors; adding that the ICO will be ongoing for the next four weeks, with a targeted amount of $50 million.

ATB oins ambitious plans for global growth are already in place and are moving forward. This cryptocurrency is developed with the worlds most advanced protocols built-in such as SegWit, Lightning Network, and Smart Contracts. Borderless micro payment transactions are recorded in as little as microseconds. Our team is well-positioned to move forward with our intermediate goal of opening offices across the U.S., Canada, Latin America, and Asia, said Herbert W. Hoover III, ATB Coin co-founder.

Crowdfunding of ATB Coin tokens began June 12, 2017, and will continue for the next four consecutive weeks. Potential investors are offered bonuses up to 10%, which will motivate an investor for an additional capital investment. Altogether, the maximum tokens issued will number 333 million, of which 50 million will be assigned to the Crowdfunding ICO.

Information about ATB Coin and ATB Coin ICO can be found on the official website: https://atbcoin.com

Continued here:
ATB Coin Cryptocurrency ICO Now Underway Across Globe - newsBTC

Ethereum founder Vitalik Buterin speaks at TechCrunch in December of 2015.

By John Phillips/Getty Images.

After catching the eye of both the Singapore government and Russian President Vladimir Putin, Ethereumthe second-biggest cryptocurrency in the world, after Bitcoincontinues to skyrocket. On Monday morning, the cryptocurrency was trading at a record-high level of $407.10, more than a 5,000 percent rise since the beginning of 2017, when it was trading at $7.98.

Ethereums founder, Vitalik Buterin, recently met with Putin during the St. Petersburg International Economic Forum, a signal that the country may be interested in using digital currency to move its economy beyond gas and oil. The digital economy isnt a separate industry, its essentially the foundation for creating brand-new business models, Putin said at the forum. (Russian entities, like the state development bank VEB, have agreed to use Ethereum to help implement blockchain technology in the country). As investors look for a place to put their assets amid mounting geopolitical instability, some are turning to cryptocurrency. Singapores government has released a report saying it has carried out a test using ethereum blockchain technology to create a national digital currency. Regulators in Japan are issuing new rules that make cryptocurrencies like Ethereum a valid form of payment. And companies such as Toyota and Microsoft, which are members of an organization called the Enterprise Ethereum Alliance, are throwing their weight behind the cryptocurrency, too.

Ethereum, which has a total valuation of $36 billion, trails only Bitcoin (valued at $49 billion) in terms of market capitalization. Bitcoin has been rallying all year, reaching a high of above $3,000 for the first time on Sunday as a growing number of people turn to virtual currencies as a safer, faster way to exchange money. But Ethereums rally may still have a ways to go: Pavel Matveev, the co-founder of banking start-up Wirex, tells CNBC that Ethereums price could reach $600 by the end of the year.

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A Mysterious New Cryptocurrency Is Surging After Being Endorsed by Putin - Vanity Fair

On June 12, 2017, from Zug, Switzerland, Crypto Fund AG announced it is launching the Cryptocurrency Fund, based on the Cryptocurrency Index, to be registered with FINMA (Swiss Financial Market Supervisory Authority).

The Cryptocurrency Index is calculated by an index provider known for investing in virtual currencies with significant market caps, including Ether, bitcoin, Ripple, and other cryptocurrencies. The index's diversification reduces volatility for investors reacting to the surge of emergent currencies in the marketplace, and its growth rate easily outpaces that of traditional equities and securities markets.

Jan Brzezek, CEO of Crypto Fund AG and former business manager of the president of UBS Asset Management and UBS Group EMEA, spoke of the differences between the new fund and predecessors, which failed to gain approval from regulators:

"We recognized the growing demand of qualified investors for a regulated and transparent gateway to cryptocurrencies and realized that we need a proven and recognized legal framework allowing qualified investors to invest in cryptocurrencies. Unlike the Winkelvoss-ETF, which was rejected by the SEC, we use the regulated and proven Swiss fund structure according to KAG [Swiss Collective Investment Schemes Act], where the asset manager, the fund management company and the custodian bank are legally separate from each other. The Fund will be highly diversified and will not list on an exchange and exclusively target qualified investors.

In March 2017, the U.S. Securities and Exchange Commission (SEC) rejected an application by the Gemini Exchange founders, Cameron and Tyler Winklevoss, to launch the first ever bitcoin exchange traded fund (ETF). However, since then, the SEC reopened the matter for public commentary and continues to deliberate on the fate of the fund. The SEC is also currently considering a similar application of an Ether-based ETF proposed by EtherIndexEtherTrust.

For this endeavor, Brzezek has teamed up with Dr. Tobias Reichmuth, who acts as chairman of the board for Crypto Fund AG and is the founding investor. In addition, FinTech expert Marc P. Bernegger joins the board, providing his expertise.

Reichmuth expressed that desires to invest in cryptocurrency come from across the board. He said:

"Private and institutional investors alike show a keen interest for cryptocurrencies as a deflationary value storage medium independent of central banks. Access via a regulated vehicle, to execution and safe storage were so far missing. The Cryptocurrency Fund will be the first regulated fund globally which provides a safe and easy access to the rapidly growing cryptocurrency world.

Bernegger noted that it is no coincidence Zug Valley was chosen as a base, citing regulatory clemency and overall regional stability.

"The term Crypto Valley has quickly gained acceptance and demonstrates the concentration and growth of Cryptocurrency companies and foundations in the region of Zug and Zurich. It is also important to mention that Switzerland with its good reputation in asset management and stable regulation has already accepted virtual currencies as an asset class. In addition, the Swiss mountains offer safe and tested warehouses for digital assets.

Crypto Fund AG is advised by the law firm MME Legal, which specializes in blockchain technology and token offerings. The fund is slated to launch in Q4 2017 and an initial dialogue with FINMA has been established.

Updated 6/13/17:An earlier version of this article incorrectly stated that Crypto Fund AG was the first regulated cryptocurrency fund.

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.

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Diversified Cryptocurrency Fund Launching From Zug Valley ... - ETHNews

Dennis Rodman is back in North Korea, the former NBA star announced this week, with help from a marijuana cryptocurrency startup. Rodman, who has made several controversial visits to North Korea, tweeted a photo of himself holding an airline ticket for the state-owned Air Koryo on Tuesday. In a subsequent tweet, he thanked PotCoin, a digital currency for buying and selling weed, for sponsoring my mission.

The purpose of Rodmans visit remains unclear, though it comes amid heightened tensions between the US and North Korea over Pyongyangs nuclear program. Four Americans are also currently detained in North Korea.

In a press release announcing the visit, PotCoin said Rodman will provide more details about his historic trip upon returning to the US. The weed startup also described him as having long-time friendships with both President Donald Trump and Kim Jong Un, the autocratic leader of North Korea. Rodman has previously appeared on the Trump-hosted reality show The Apprentice, and endorsed Trump during the 2016 presidential campaign. He also described Kim as a friend for life after visiting North Korea in 2013, and has drawn criticism for his public appearances alongside the dictator.

Speaking to CNN before boarding his flight, Rodman said hopes to do something that's pretty positive during his trip, though he said he did not intend to bring up the detained Americans during any discussions with North Korean leaders. Well that's not my purpose right now... My purpose is to go over there and try to see if I can keep bringing sports to North Korea," the former Chicago Bulls forward told CNN.

Rodman, wearing a PotCoin-branded t-shirt and baseball cap, said in a short video released Tuesday that the trip is all about peace. One of Rodmans previous trips to North Korea was sponsored by an Irish betting company. The value of PotCoin surged following Rodmans announcement early Tuesday.

Speaking to reporters in Tokyo, Under Secretary of State Thomas Shannon said that the US was aware of Rodmans visit, and that he is traveling as a private citizen. We are aware of his visit. We wish him well, Shannon said, as reported by Reuters. But we have issued travel warnings to Americans and suggested they not travel to North Korea for their own safety.

Continued here:
A cryptocurrency for weed is sending Dennis Rodman back to North Korea - The Verge

Some interesting things are happening in the world of cryptocurrency faucets. Up until a few weeks ago, anyone running a faucet could earn a lot of money by showing Google Adsense advertisements on the website. If the traffic is high enough, this could have been quite a lucrative business. However, it appears Google has made some drastic changes, which makes faucet owners earn a lot less money.

Over the past few years, many people have opted to run a Bitcoin faucet website in the hopes of making some good money for displaying banner advertisements. Since faucets are visited by thousands of people every day, there is a good chance to make decent money from a faucet website. Unfortunately, that is no longer the case, as Googles Adsense program has undergone some big changes regarding what types of sites can display advertisements in the first place.

To be more specific, the Google Adsense program now prevents faucet websites and other platforms not focusing on unique content from showing advertisements. Even if people do so, they will earn a lot less money from doing so. In a way, this chance was only a matter of time. Faucet sites present nothing unique in the world, as they all revolve around letting users click a few buttons to collect small amounts of Bitcoin or other cryptocurrencies.

Any website displaying advertisements without providing quality content should not make as much money from Google Adsense as people who work hard to make their site stand out. That is only the normal way of doing business. Faucets get a lot of visitors, but the traffic itself is quantity-oriented, rather than focusing on quality. Anyone clicking ads on faucet websites has no real interest in the advertisement itself but mainly do so due to a misclick.

It is only normal faucet operators will see their Google Adsense earnings go down dramatically. Google Adsense is a tool designed for content creators and not people who copy-paste an existing faucet script linked to a cheap domain name. Making money with online advertisements requires time, dedication, and effort. None of those traits can be associated with cryptocurrency faucets, even though some operators put a fair amount of work into designing a unique layout.

The bigger question is whether or not there is any intrinsic value to cryptocurrency faucets these days. These platforms used to be quite valuable in the early days of Bitcoin, but their success has tapered off in recent years. Moreover, faucet operators will only pay out small amounts of Bitcoin due to their site earnings being even lower. It is evident something will need to change, and faucet operators will need to start looking for alternative solutions to make money. Adding a news section with unique content to a faucet, for example, could do wonders.

It appears to be only a matter of time until faucet operators will be put out of business entirely. That is, unless their business models evolve accordingly. There are no easy ways to make money these days, and cryptocurrency faucets are slowly losing their appeal. It is good to see Google take such an aggressive measure where their Adsense program is concerned, that much is certain. Rest assured a lot of faucet operators will not be too happy about this decision.

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Google Adsense Drops Cryptocurrency Faucet Operators - The Merkle