Category Archives: Cryptocurrency

In the last three days, the cryptocurrency market has experienced a minor reversal of sorts, with more than $31 billion wiped from the total market capitalization of all cryptocurrencies in the last three days.

Much of this loss can be attributed to the recent bearish momentum seen by Bitcoin (BTC), which fell from over $10,300 on February 15 down to briefly touch below $9,500 today as more than $14 billion was wiped off its market cap. Bitcoin has since recovered slightly and currently sits at just south of $9,600.

Other major cryptocurrencies are also experiencing similar, if not greater losses. As it stands, every cryptocurrency in the top ten by market capitalization is in the red today, with Bitcoin Cash (BCH) and XRP currently performing the worst after losing between 7-8% apiece. Likewise, Ethereum (ETH) and EOS are down around 4% each.

Although it is currently unclear why the market has taken a bearish turn, recent performance issues seen by Binance may have contributed to a change in investor sentiment. Nonetheless, despite its recent losses, the global cryptocurrency market is still up by almost 14% in the last month, and almost 17% in the last three months. As such, there is still some leeway before this adverse market movement can be considered a long-term change in market dynamics.

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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Bitcoin touches $9,500 as $31 billion wiped off cryptocurrency markets - Yahoo Finance

Watchers of the crypto space were beside themselves with the recent news that the U.S. Federal Reserve is apparently considering a digital currency. "Every major central bank is currently taking a deep look" at cryptocurrencies, Fed Chairman Jerome Powell said during a congressional hearing on February 11. "I think it's very much incumbent on us and other central banks to understand the costs and benefits and trade-offs associated with a possible digital currency."

The news drove Google searches for the best-known cryptocurrency, Bitcoin, up by 33 percent, and its price surged past $10,000 for the first time in months. Many are suggesting this is the moment crypto comes off the margins to take up its promised role as a mainstream framework for the future of finance. But a closer parsing of the Fed chair's words suggests we should be skeptical.

Powell's mention of cryptocurrency is tantalizing. But it actually represents more of an evolution than a revolution. The central bank is mostly interested in eliminating inefficiencies and increasing visibility into global finance by, effectively, digitizing the dollar. This may well represent a technological leap, but it isn't the same as a federal cryptocurrency, for one obvious reason: It would still be completely controlled by the Fed.

Blockchain-powered currencies such as Bitcoin and the industry's No. 2, Ethereum, are meant to run without central control. This poses real challenges, and the government's apparent interest in crypto is a reminder of the potential pitfalls and false starts the technology faces on the road to broad adoption. Look no further than the bumpy introduction of Facebook's Libra cryptocurrency, which has drawn a fierce backlash from legislators, bankers and even blockchain enthusiasts themselves.

Interestingly, these parties all share the same fear: that Facebook will use Libra to try to create a parallel economy that the company controls. The crypto community has little faith in centralized systems generallyand especially one run by Mark Zuckerberg. The U.S. government also seems reticent to accede to a financial system run by a private corporation or anyone besides itself. What's revealed here is that central banks like the Fed and the crypto community may be more natural allies than first impressions would suggest. But they must traverse a mutual learning curve before they can truly act in a shared interest. One of the first obstacles is understanding what crypto really is.

The fact is, cryptocurrencies are more than just digitized money. They represent an effort to reshape information and financial systems to make them more secure, more transparent and more trustworthy. They are decentralized and self-perpetuating, governed not by powerful individuals or central entities but by market-oriented incentive structures that are written into their DNA.

The scale of the change is as great as the shift from precious metals to paper money or the invention of credit. The blockchain platforms that undergird cryptocurrencies offer a possible future in which finance is no longer opaque and subject to the judgments of middlemen, but is transparent and accessible to everyone. It is no coincidence that so many of the earliest footholds for decentralized finance are in countries, largely in the global South, where governments have mismanaged economies and large segments of the population lack access to basic financial infrastructure such as banks.

Blockchain and cryptocurrency have already started reshaping our financial and information systems in fundamental ways, but most of these projects don't make headlines on a daily basis. As we continue moving past the industry's collective "trough of disillusionment" brought on by 2017's crypto bubble and subsequent burst, the most exciting crypto projects are still operating largely below the radar. That won't last forever. In just the past several months, my colleagues and I have seen many innovative projects move from design to production, promising to reshape aspects of our digital lives from finance to social media to the Internet itself. This momentum is only likely to continue.

The Federal Reserve and other central banks and regulatory regimes around the world must and will play a crucial role in all this. Someday, national currencies may indeed be superseded by decentralized successors. But it isn't going to happen this year.

What is happening now is the rapid blossoming of blockchain and crypto solutions. In a short period of timeyears, not decadesthese types of projects will begin to rewire our global information channels, finance networks, supply chains and more. Central banks will get to see for themselves just how much benefit distributed ledger technology can have if properly implemented. And in their own time, I believe they will integrate the best of these technologies into their own operations. That really is cause to celebrate.

Sean Medcalf is a co-founder and managing partner of Angle42, a company that provides communications and strategic support to businesses in blockchain and other emerging technologies.

The views expressed in this article are the writer's own.

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The Fed's Cryptocurrency Head Fake | Opinion - Newsweek

This is the web version of The Ledger, Fortunes weekly newsletter covering financial technology and cryptocurrency. Sign up here to receive future editions.

Good morning. The U.S. economy may be going gangbusters, but for those looking for a return on their savings, the picture is less pretty: Even so-called high yield savings accounts offer a pittance in interestGoldman Sachs Marcus product, for instance, currently offers a measly 1.7%.

Thats what makes the new world of decentralized finance, or DeFi, so intriguing. This exotic corner of the cryptocurrency markets has been around for barely two years, but is attracting outsize interest because users boast of earning 4 to 8% interest on deposits.

Those higher interest rates are possible, DeFi boosters say, because there is no bank or other middleman to profit off consumer deposits. Instead, the system relies on pairing individual borrowers and lenders who rely on automated smart contracts to administer loans and pay out interest.

Investors who want to try their hand at DeFi can turn to platforms like MakerDao or Compound, which arrange loan contracts using cryptocurrencies like Ethereum or so-called stablecoins, which are pegged to the U.S. dollar. The platforms are growing quickly and, earlier this month, the fledgling DeFi industry touted the fact that over $1 billion of Ethereum is currently locked up in interest-yielding contracts.

Another reason to take DeFi seriously is the people who are building it. While the industry has its share of crypto cowboys, many others come from the world of mainstream finance. These include Compounds CEO, Robert Leshner, a trained economist who spent years predicting Federal Reserve rates. Another is Richard Ma, who came up trading commodities for Tower Research, and now runs a firm called Quantstamp that audits blockchain projects.

Ma estimates there are only around 50,000 people currently using DeFi products. But he believes this number will soon mushroom thanks to startups like Nuo and Ramp that aspire to be the Stripes and Plaids of the DeFi worldhelping consumers and merchants connect their checking accounts to the new realm of decentralized borrowing and lending. He also predicted 4-8% interest rates will be a spur for investors to cross over to DeFi.

There is, of course, no guarantee any of this will come to pass. The paltry number of current DeFi users underscore that its still a fringe area of finance, and that even sophisticated investors will have a hard time getting their head around notions like automated Ethereum contracts. Meanwhile, an ingenious robbery this weekend, in which a hacker conned a DeFi service out of nearly $1 million, showed the technology is neither as secure or decentralized as its evangelists claim.

But like Bitcoin or the Internet itselfwhich many once dismissed as a fadit feels like Defi is here to stay. The idea of an open financial system beyond the banks is a powerful one, and there are too many smart people building it to think it will be stopped. And that promise of 8% interest rates might be too sweet to ignore.

A final note to Ledger readers: Weve already assembled an impressive list of names to join us in Montauk for Brainstorm Finance on June 17 and 18. They include top executives from both traditional finance and crypto companies, and a surprise dinner guest. Well be sharing more details next week.

Jeff John Roberts

@jeffjohnroberts

jeff.roberts@fortune.com

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Cryptocurrency, decentralized finance, and the sweet promise of 8% interest - Yahoo Finance

As the cryptocurrency markets are in freefall, global cryptocurrency regulation appears to be turning bearish as well. While one SEC Commissioner proposes a safe harbor for cryptocurrency projects, the US Secretary of the Treasury announces significant new regulation. So, what gives? Top five countries promising stricter cryptocurrency regulation 1. Brazil The cryptocurrency scene in Brazil []

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Global cryptocurrency regulation is turning bearish in these five countries - CryptoSlate

As Africa continues to advance its fast-paced economic growth, we take a look at global crypto giant Paxfuls priorities for the region.

The world has much to learn from Africa about the future of the crypto-economy, comments Paxful, 2020 will be a landmark year for the African crypto and blockchain industry. In a recent report conducted by Paxful into its operations undercovered that in 2019, worldwide processed US$1.6bn in trade volume and hosted 3mn wallets. Of those 3mn wallets the company confirmed 45% are from Africa.

Strengthen its relationship with Africa

Over the next few years, Paxful plans to ramp up its efforts within the region to increase its customer base and continue to learn from its customers in order to provide the best peer-to-peer finance marketplace.

In addition to its marketplace, Paxful hopes to expand Africas participation in its Global Peer Programme. which encourages bitcoin users to educate each other on the opportunities a crypto-economy can provide.

We are very, very bullish on Africa and believe it is critical to the future of the crypto-economy overall. While many parts of the developed world are fixated on speculative activity in the crypto economy, people in Africa are teaching us about the true use cases of bitcoin and the opportunity it presents for greater financial inclusion of the under-banked. As a company, we want to do what we can to ensure that our platform continues to be a bridge to the global economy for our customers Says Artur Schaback, Co-Founder and COO of Paxful.

Partnership expansion

Over the years, Paxful has partnered with many key players within the cryptocurrency industry, including BitMart, BSpin, AirTM, and CoinLogiq. With this in mind, the company wants to increase its partnerships with African companies.

Africa has tremendous potential and partnerships are essential in this pivotal time within the cryptocurrency industry. We are actively looking to join forces with African-born crypto players who share our passion and vision for the global crypto-economy, says Ray Youssef, CEO and co-founder of Paxful.

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Priorities education and social good

In 2019, Paxful completed a university education drive in East and SouthAfrica. The drive reached over 1000 people, providing practical insights into use cases of Bitcoin, how to avoid falling prey to threats and mitigation speculation.

With bitcoins original mission of financial inclusion in mind, Paxful is committed to reaching as many people as possible to help them better understand the opportunities presented by the crypto-economy. With this in mind, education and social development will always be a priority for Paxful, concludes Youssef.

For more information on all topics for FinTech, please take a look at the latest edition ofFinTech magazine.

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The future of blockchain and cryptocurrency in Africa - FinTech Magazine - The FinTech & InsurTech Platform

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What Exactly Is Facebooks Libra Cryptocurrency? What Are Its Challenges?

The new decade is set to launch with one of the most ambitious cryptocurrencies yet, with the social media giant Facebooks Libra expected to start trading in a few months. The new coin certainly has the muscle behind it: in fact, it has an entire Libra Association that consists of companies such as Spotify, Farfetch, Uber, Lyft, PayU (Naspers fintech arm), and Calibra. Along with a plethora of other venture capital firms spanning the blockchain and telecommunication networks, and some non-profit organisations.

The vision of Libra is put in no uncertain terms on its official website. That is to create: a stable global cryptocurrency built on a secure network enabling a more inclusive global financial system.

What Facebook and the other giants hope to achieve is to connect everyone in possession of a mobile phone to the global financial infrastructure. These are what Facebook considers the unbanked, those who do not have access to a bank, but who do have a mobile phone.

Libra would give these unbanked masses the ability to transfer money across the world instantly, on a secure network and at a low cost. If implemented, Libra would be an example of leapfrogging technology, in which developing societies bypass what traditionally would have been a necessary technological evolution (i.e. the establishment of more banks) in order to get to an end point.

Current proposals put Libra on a blockchain that encompasses around 100 computer servers, at least thats the ambition. The blockchain algorithms will be programmed to work as whats known as a command-line programme, something that will make scripting and interactive usage possible; with an interface of consistent options and file formats. For further security, Libra is also thought to be using Byzantine fault-tolerant consensus approach. This means that, in theory, the wider blockchain cannot be compromised even if one of the servers is disrupted.

But not everyone has faith in the new cryptocurrency, even with all the financial backing it has. Again, in theory, it should be almost impossible for a cyberattack to disrupt Libras blockchain, as a third of its 100 servers would have to be disrupted before such an attack could even be launched.

The Libra Association has also stressed that each of its members will have their own server, and that it will be supported independently by them and secured. Furthermore, the blockchain will have its own consensus-based algorithm. Meaning that transactions must be approved by two-thirds of all the servers before going ahead. This should make transactions more measurable and efficiently processed. Facebook has even said that Libra would be capable of processing a thousand payments per second, which would make it about 500 times more efficient than Bitcoin is today.

Despite the proposed ambitiousness of Libra, the United States and European Union regulatory bodies are yet to be won over. They already do not like the strength of pre-existing cryptocurrencies. Some countries have even outright banned them.

To get round this problem, the Libra Association has marketed its currency as one that has been specially designed to be friendly to regulators from the get-go. They insist, for example, that Libra is a stablecoin. If true, then this should alleviate some national fears for its potential implications on monetary policies. Still, there are concerns that if the Libra is very popular, it could become Too Big To Fail, which of course is a phrase still haunted by the 2007-08 economic crises.

The reason for these TBTF anxieties lies in the fact that Libra is intended to be collateralised by other currencies and some debt obligations. If there was ever a run on Libra, it would lack a centralised bank to mitigate the damage.

Libras special status means it will be a global currency and not specific to any one nation. So it is only natural that some national governments have expressed concerns about how it will impact on their unilateral monetary policies. Libras global status assures that it will fluctuate differently to any one other currency, meaning it will be shaped by its underlying assets, and may even resemble something like an index in volatility.

One way to address these fears may be found in a report conducted by the Association of German Banks. The AGB has suggested restricting Libra for payment transfers only, and not giving it the ability to provide loans. this would prevent the cryptocurrency from becoming a money creation system in its own right.

Cryptocurrencies have enjoyed successful investment status and investment is predicted to keep increasing until 2020 at a minimum. Blockchain investments in the Libra cryptocurrency should be considered as a hedge in a diverse portfolio to protect against falls in other types of investments. Of course, at the moment Libra is not an asset that can be invested in yet. But once it comes online, theres no reason it wont enjoy the success of others (not including the decline of Bitcoin, which may be in response to more competition from other cryptocurrencies).

Once online, Libra should be safe to invest on optimised cryptocurrency trading platforms that can handle automated and manual trading.

iven other fears including loss of tax revenues and transaction fees, traditional banks have already acknowledged that change is coming. In its Future of Finance report, the Bank of England has already said that hard infrastructure needs to make room for, and can work with, soft infrastructure (cryptocurrencies). But what needs to be in place is a well-respected judicial and legal system, along with clear regulations, standards and rules.

As for the Libra cryptocurrency, no one can doubt the ambition of such a project. But whether it is something that the market actually needs is still a question that no one as of yet has an answer for.

Featured image by Tim Bennett on Unsplash.

This article was written by Neil Wright of Oakmount Partners Ltd, an investment consultancy firm based in Essex, UK.

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What Exactly Is Facebooks Libra Cryptocurrency? What Are Its Challenges? - CryptoGlobe

The 2017 cryptocurrency bull market will go down in history as one of the most remarkable and extraordinary events in financial markets.

It saw Bitcoin rise to $20,000, Ethereum to $1,420 and a plethora of newly-launched ICO projects experience gains of up to 3,000%.

More than two years later, Bitcoin has failed to breach its previous all-time high while the likes of Ethereum continue to trade 80% lower than it once was.

However, 2020 has caused a newfound sense of optimism across the industry, which has been highlighted by a dramatic rise in prices across the board in the first six weeks of the year.

With a number of altcoins right on the brink of a major breakout, it does seem as though a bull market is currently in effect for the cryptocurrency sector.

Whether it has become a safe haven amidst economic uncertainty due to the coronavirus, or simply a move to anticipate leading up to Bitcoins halving, the overall level of cryptocurrency sentiment is brewing towards euphoria.

In May, Bitcoin will undergo a third halving in its 10-year history, which will see block rewards for miners slashed from 12.5BTC to 6.25BTC per block.

The theory is that the mining industry will be more incentivised to hold onto the extra coins mined until the halving, thus drying up supply.

When the supply is reduced, the price naturally begins to rise which, in turn, causes a new wave of demand from both new and old investors.

The previous two halvings in 2012 and 2016 both came before a series of bull markets that saw Bitcoin surge to two consecutive all-time highs with altcoins eventually following.

Global markets have experienced a decline since the turn of the year as concerns begin to mount in regards to the coronavirus outbreak in China.

Companies have begun removing foreign workers from Chinese offices and factories in light of recent concerns, which is expected to hit the worlds second largest economy hard over the coming months.

As uncertainty reigns over the far eastern manufacturing hub, traders and investors are beginning to fear a global bear market, which naturally causes people to turn towards traditional hedges like gold and Bitcoin.

For more news, guides and cryptocurrency analysis, click here.

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Is the cryptocurrency bull market finally here? - Coin Rivet

The World Economic Forum (WEF) in Davos, Switzerland, ended yesterday with a significant mark on the cryptocurrency market. On the last day, WEF announced the first global consortium focused on designing a framework for the governance of digital currencies, including stablecoins.

The World Economic Forum for 2020 took place at Davos the past week, and cryptocurrencies received a lot of attention.Yesterday, during its last day, the Forum announced the creation of the first Global Consortium for Digital Currency Governance. It will consist of financial institutions, government representatives, academics, international organizations, leading companies, technical experts, NGOs, and members of the Forums communities on a global level.

The report indicates that if digital currencies are to receive proper financial inclusion, they need to be paired with good governance. Therefore, the Consortiums purpose will be to establish a framework of regulations by implementing innovative approaches. To achieve their goal, the participants will use efficiency, speed, inter-operability, inclusivity, and transparency.

The Consortium will work with both the public and the private sectors to explore the presented opportunities.

According to Klaus Schwab, Founder and Executive Chairman of the WEF, digital currency, a cross-cutting topic that requires input across sectors, functions, and geographies, is a key area of interest for the Forum.

Mark Carney, Governor of the Bank of England, also spoke on the matter:

Governance is the core pillar of any form of digital currency. It is critical that any framework on digital currencies ensures security, efficiency, and legitimacy of payments while ensuring fair and open competition. We welcome the WEFs platform to help develop a robust governance framework for inclusion through digital currencies.

As CryptoPotato recently reported, the efforts of establishing regulations on the cryptocurrency market are getting more and more serious. As of January 10th, the European Union introduced an updated version of its 5th Anti-Money Laundering Directive (5AMLD) with increased regulatory focus.

All cryptocurrency-related businesses operating from Europe have to follow the rules. They include a more in-depth Know-Your-Customer process, transaction monitoring, and filing suspicious activity reports (SARs) with law enforcement.

One of the aftermaths came shortly, as the popular exchange Deribit announced its upcoming relocation from the Netherlands to Panama.

With the creation of the Global Consortium, world watchdogs will try to establish a framework of regulations on cryptocurrencies. Its particularly interesting to see whether this will be beneficial for the space as a lot of the market participants remain unregulated.

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Regulating Bitcoin: WEF2020 Announced A Global Consortium For Cryptocurrency Governance - CryptoPotato

Recent research shows that Ether (ETH) was the cryptocurrency most correlated to the rest of the crypto market in 2019.

In a report published on Jan. 22, the research arm of major cryptocurrency exchange Binance suggests that throughout 2019, ETH had an average correlation coefficient of 0.69. The paper, which compared correlation data of 20 top cryptocurrencies, reads:

Ether (ETH) is the highest correlated asset. With an average correlation coefficient of 0.69 throughout 2019, it is consistently among the most correlated assets. The coefficient started at 0.69 in Q1 and rose to 0.72 in Q4 (Q2: 0.65; Q3: 0.74).

Per the report, Ether was much less correlated in the first half of 2019 and became the most correlated in the second half. Interestingly, the paper points out that programmable blockchains such as Ethereum, NEO and EOS often showed higher correlations with each other than with non-programmable assets.

Other crypto assets that have shown a high correlation with the rest of the market include Cardano (ADA), EOS, Litecoin (LTC), XRP and Binance Coin (BNB). Furthermore, the researchers observed that correlation is typically higher among cryptocurrencies with the highest market caps.

Comparison of quarterly average correlation coefficients for the five most correlated assets. Source: Binance

The assets with the lowest correlation to the rest of the market, on the other hand, are Cosmos (ATOM), with a correlation of 0.31, followed by Chainlink (LINK) and Tezos (XTZ) with respective coefficients of 0.32, 0.4. Overall, the median correlation between large cryptocurrencies slightly decreased over the last quarter of 2019

Another interesting phenomenon pointed out by the researchers is the Binance Effect, which refers to the fact that cryptos listed on Binance displayed higher correlations than with the assets not present on the exchange. The firms research also claims that, among the top ten cryptocurrencies by market cap, its own crypto asset Binance Coin is the one that has seen the highest returns.

Comparison of quarterly price changes for the ten largest assets by market cap. Source: Binance

While the correlation between crypto assets has been widely observed, the correlation between Bitcoin (BTC) and traditional assets especially gold is still subject to debate. Nonetheless, new data suggests that BTC is less correlated to gold than many believe it to be.

In the past, some also observed that Bitcoin had an inverse correlation to the stock market. As Cointelegraph explained in a market analysis piece at the end of October 2019, at the time this trend broke.

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Research: Ether Was the Cryptocurrency Most Correlated to Other Coins in 2019 - Cointelegraph

Your favorite altcoins path to becoming the next Bitcoin is a lot more treacherous than you think.

The CEO of uPlexa (UPX) told CCN.com about the financial and ethical minefield faced by upstart altcoin projects in the cryptocurrency industry. Kyle Pierce the projects co-founder and lead developer paints a miserable picture of an industry that may already have been taken over by its worst people.

The king-making ability of centralized exchanges is no secret. The CEO of DigiByte (DGB) claims he was asked for $300,000, plus 3% of his 58th ranked altcoins entire coin supply, to get listed on Binance.

The demands made of the 1,371st-ranked uPlexa were equally outrageous. According to Pierce:

Weve had offers for 50% of the premine to get listed on an exchange. 50% of our premine thats allocated to exchange listings, marketing, hiring, founding team, core members, security audits, etc. They somehow believe that one hour of their time is worth nearly 6,000+ of our current man hours into this project.

Pierce says the saturation of centralized exchanges is making matters worse. Over 1,500 exchanges now compete for the same territory. As that number increases, the desperation of each rises accordingly.

Theres 1500+ centralized exchanges that offer the exact same service, and theyre starting to lose volume. So they artificially boost the volume and hire VAs to go around soliciting every team member of every project in hopes to quickly make a quick buck before their watering hole dries up.

These exchanges have become a choke-point for the cryptocurrency industry. The only way to get listed is to play their game. That means new cryptocurrency projects have their development plans dictated to them before theyve even begun.

For projects who did not participate in the IEO/ICO stages and have no funding, it is nearly impossible to get listed on an exchange. So, firstly, not only are people predominantly trading on centralized exchanges in a decentralized area, but the exchanges that are making huge sums of money are killing off the potential for real-world technologies to get noticed/adopted.

Another exchange told Pierce they would be happy to list his project, if only they moved away from the whole privacy thing.

Pierce told us that when uPlexa finally got listed on its first exchange (for around 1 BTC), even more scammers emerged from the woodwork. Pierce says he was contacted by someone asking to buy 20 BTC worth of UPX over-the-counter for 30% less than its market price.

The stated plan was to become invested in the coin, and then get behind its marketing efforts for their own benefit and that of the community. Pierce was suspicious, but he directed the buyer towards a miner with large UPX holdings.

After promoting the coin for two days and then moving on, Pierce realized the buyer was basically a pump and dump artist, who buys coins at a markdown then sells them for profit.

At this time, I had pretty much told them to f*ck off with their pump & dump scheme after reading about other groups who participated in major supression of other coins and then trying to sell to their group of investors who they make calls to on a daily basis.

According to Pierce, these solicitations are not uncommon. In fact, he thinks the cryptocurrency industry is largely dominated by these market manipulators.

Most of the time, when you see people talking about cryptos, its because they already got their bag at a cheap price and are looking to unload their bag at a quick 2x profit on you. Investors come into the market looking to make 5-10x (which, yes, may be unreasonable in most circumstances), only to be eaten alive by these types of manipulators.

Pierce states that even cryptocurrency influencers are twisting the screw as hard as they possibly can. When reaching out to Twitter and YouTube content creators, he found that every one demanded close to half a Bitcoin just to talk about uPlexa.

Every single one expected to be paid anywhere from 0.35-5BTC to talk about our technology. It became very clear to me at that moment, that 99% of all media regarding cryptocurrencies is paid by projects with massive amounts of funding. Little to nothing in the crypto world is organic.

Almost every service imaginable seems to be hidden behind a paywall in the cryptocurrency world. Even those which are free, such as CoinMarketCap listings.

we had a flock of different users advertising new services to us: CMC listings (even though this is free), exchange listings, supposed market making services, and even dumping strategies. One user even went so far to say they could help us sell our entire premine on the exchanges without market selling, which was obviously not in our interest.

Every service offered by exchanges comes at a cost. If an update is required, they charge 0.25 Bitcoin. If you want a new trading pair added, it costs another quarter of a Bitcoin. Thats despite the widespread use of modern technologies that make these services a five-minute job.

Pierce says he does see the industry changing over time, and his outlook for the future remains optimistic. But in the meantime, he says centralized exchanges will continue to reign as the banks of the crypto world.

I want to see everybody have a chance at succeeding and for ground-breaking technologies to run wild. Instead, centralised exchanges have become the new banks of the crypto world, and are just as greedy and corrupt. If youre not partnered up at the top 1% with them, its going to be a very long journey for your project.

Disclaimer: The opinions in this article do not represent investment or trading advice from CCN.com.

This article was edited by Josiah Wilmoth.

Last modified: January 22, 2020 2:53 PM UTC

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The Dark Side of Becoming the Next Bitcoin - CCN.com