Category Archives: Cryptocurrency

Investopedia

New Virtual Reality Cryptocurrency Gets $2.1 in Funding Investopedia As the cryptocurrency world expands, it's difficult to say exactly how many other industries it will impact. Nonetheless, one industry that has already been affected by the expanding digital currency realm is gaming. As mining operations have ...

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New Virtual Reality Cryptocurrency Gets $2.1 in Funding - Investopedia

Investopedia

Latest Cryptocurrency Hub: Kazakhstan? Investopedia The Kazakhstan government announced this week that its AIFC will partner with the external financial organizations to make for an accommodating regulatory climate to encourage cryptocurrency, blockchain, and fintech companies to settle in the area.

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Latest Cryptocurrency Hub: Kazakhstan? - Investopedia

Investopedia

How Do You Get Rich Off of a New Cryptocurrency? Investopedia Cryptocurrencies have been the most exciting financial topic of 2017 for many investors, and with good reason. Bitcoin jumped in price, reaching highs of more than $3,000 earlier this year. Ethereum and Ripple, the second- and third-largest digital ... and more »

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How Do You Get Rich Off of a New Cryptocurrency? - Investopedia

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One of the most popular cryptocurrencies in the world is drawing increased attention from hackers, or at least that has been the case this week. For the second time in a span of just three days, hackers have been able to make off with millions of dollars worth of Ethereum, leaving vigilante white hat hackers scrambling to prevent further theft.

In this latest robbery, the hacking group (or individual hacker, we don't know yet) exploited a vulnerability in Parity, a digital wallet service where cryptocurrency miners can store their Ethereum. In doing so, the hackers were able to swipe over 153,000 Ether worth approximately $34 million from three separate multi-signature Ethereum wallets, according to the most recent estimates.

Following the latest heist, Parity founder Gavin Wood issued a critical security notice to users.

"A vulnerability in Parity Wallet's variant of the standard multi-sig contract has been found," Wood wrote. He goes on to advise users to "immediately move assets contained in the multi-sig wallet to a secure address."

In the meantime, white hat hackers have been able to siphon some 377,015 Ether worth more than $85 million to prevent further loss.

"White hat group(s) were made aware of a vulnerability in a specific version of a commonly used multi-sig contract. This vulnerability was trivial to execute, so they took the necessary action to drain every vulnerable multi-sig they could find as quickly as possible," the White Hat Group stated on Reddit.

Those funds will be issued back to their owners after the group is able to create another multi-sig for each individual with the same settings as before, minus the vulnerability that made theft possible in the first place.

This is not the only black eye for cryptocurrencies, or even the only theft this week. Back on Monday, hackers made off with an estimated $10.3 million in Ethereum currency from CoinDash. In that instance, it is believed the culprits simply replaced the legitimate Ethereum wallet address listed on CoinDesk with one that belonged to them.

There are several other examples of thieves stealing large amounts of cryptocurrencies, as Gizmodo points out. Back in June of last year, hackers stole $53 million cryptocurrency from venture capital fund Decentralized Autonomous Organization. And then there was the situation in which $450 million of Bitcoin vanished from trading hub Mt. Gox a few years ago.

Despite the risks, mining for cryptocurrency continues be popular, much to the detriment of PC gaming. If and when things ever settle down, it will likely be due to plummeting values rather than the fear of theft.

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Hackers steal $34 million in second Ethereum cryptocurrency theft this week - PC Gamer

While the movement from traditional banking and financial institutions to cryptocurrency investments has been slow for some, others have been biding their time and waiting for the appropriate moment to make the switch. According to a recent report by Coin Telegraph, John Mack, the former Chief Executive Officer for Morgan Stanley, is in the latter category. Mack is reportedly preparing to enter the cryptocurrency game and is looking to launch an ICO at some point later in the year. Why would Mack be interested in joining cryptocurrency investors in the hottest new trend?

Mack's project at this time is Omega One, a platform which he says "is going to be transformative because it benefits the entire ecosystem--making crypto assets cheaper and easier to access," according to the report. Mack claims that he has been following and investing in digital currencies for several years, and he feels that Omega One is uniquely prepared to transform the industry. His investments in the startup were reportedly made via Venture One, a portfolio company which he backs privately. The goal of Omega One seems to be to push digital currencies into broader public view, making them more available and attractive to potential investors. Mack is currently the sole investor in this project, although his status as a finance legend will likely draw in other interest as time goes on.

According to Alex Gordon-Brander of Omega One, his company provides "the bridge between traditional capital markets and the crypto markets." Omega One, he says, "will provide everything from balance sheet intermediation and a trusted counterparty." He points to the "very first signs of institutional adoption of crypto markets" as a sign that his company has an interested and eager audience, as well as room in which to make an impact.

Analysts at Coin Telegraph suggest that Mack's move into the cryptocurrency space has been strategically timed, as the cryptocurrency market itself has grown and matured significantly over the past year and a half. With a clear sign that institutional investors are interested in entering the field, there remains a bit of mystery as to how these investors could best make use of their assets. This is where a company like Omega One could come in, or at least that's what Mack and the company's leaders hope. Regulation and education regarding the digital currency world are some of the largest barriers at this point. Experienced financial professionals like Mack may hope that their background in trading securities and assets of all kinds will allow them the benefit of being able to learn about and improve upon the way that cryptocurrencies are bought and sold, too.

Omega One will reportedly offer clients the opportunity to hold native tokens. It aims to launch via an ICO at some point later this year, after August and before December.

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Morgan Stanley Ex-CEO to Launch Cryptocurrency Game-Changer - Investopedia

News world

Governor of the Austrian Central Bank Ewald Nowotny warned users about the speculative nature of virtual currency. Nowotny also serves as a member of the governing council of the European Central Bank (ECB).

On July 19, governor of the Austrian Central Bank (German: Oesterreichische Nationalbank) Ewald Nowotny warned against cryptocurrency usage in an interview with newspaper Kleine Zeitung. Nowotny worries that the general public fails to grasp the potential psycho-social ramifications of a virtual currency correction. When asked about Japans recognition of bitcoin as a means of payment, Nowotny expressed his reservations.

Bitcoin is not a currency, he said. Bitcoin lacks the one thing that makes a good currency, namely stability. Instead, he classifies bitcoin as an object of speculation.

His hesitation is understandable, especially in light of bitcoins impending User Activated Soft Fork. Nonetheless, cryptocurrency has taken root in Austria. sterreichische Post, Austrias official postal services provider, recently announced its partnership with a Vienna startup to allow the exchange of euros for bitcoin.

Significantly, Nowotny is not completely pessimistic about cryptocurrency. He explains that Austria does not ban it as a banknote, but acknowledges that you have to let the people know what they are doing. Previously, he had compared cryptocurrencys popularity to the Tulip Crazeof the 16th century Holland.

Nowotnys measured approach is exactly what a concerned public would hope for in a central banker. He recognizes the inherent dangers and seeks to insulate the Austrian economy.

[Bubbles] can have negative psychological effects, he said. This is the danger we see but I would not overrate it either.

As a member of the European Central Banks governing council, Nowotny may inform the approach of his colleagues. In May, ECB president Mario Draghi encouraged the close study of distributed ledger technology.

Quotes translated from German using Google Translate.

Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles.

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Governor of Austrian Central Bank Advises Cryptocurrency Caution ... - ETHNews

- Recent cryptocurrency losses have been pulled back.

- Volatility remains until new proposals come into force.

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Fears that blockchain may split into two, creating two different bitcoins (BTC), have lessened in the past two days as bitcoin miners have begun to support a new bitcoin improvement proposal (BIP) that would help solve the long-running scaling problems. The proposal BIP 91, would introduce SegWit2X to the blockchain to help speed up the transaction time from the current limit of 1 megabyte every 10 minutes. According to many in the industry, BIP 91 would make implementation of SegWit2X less risky and would decrease the probability of a blockchain split (hard fork).

Over the past couple of days, bitcoin miners have begun signalling support for BIP 91 by adding a piece of code to each new block transaction. If the required 80% support is reached before August 1, the new protocol would be locked-in, lessening the chances of a hard fork. The activation window is 336 blocks and if the 80% target is hit, BIP 91 locks-in and after another 336 blocks are mined it becomes activated.

The latest signalling rate is seen just under 80% of the last 144 blocks mined with several of the largest BTC miners already showing their support for the new proposal, including AntPool, BitClub, Bixin, BTC.com and BitFury.

With the chances of a blockchain split lessening, the price of BTC and most other digital currencies have recovered from Sundays heavy sell-off. The future though may be less certain with the recent volatility underscoring the need for cryptocurrency traders to tread carefully in the weeks ahead. The chart below shows BTC still trading below its 100-day ema with a potential resistance level around $2419.

Chart: Bitcoin Four Hour Timeframe (June 14 - July 19, 2017)

Chart by IG

Ether (ETH) in the meantime has seen even sharper swings than peer bitcoin slumping from $225 on Sunday to a $137 low before rebounding to trade over $257 late Tuesday.

Chart: Ether Three Hour Chart (July 7 July 19, 2017)

Chart by TradingView.

Ethereum however, may soon come under increasing State regulation, over the recent surge in Initial Coin Offerings (ICOs), the cryptocurrency markets equivalent of traditional equity Initial Public Offerings (IPOs).

Market Moves/Capitalizations July 14, 2017.

Cryptocurrency

Price/Change%

Market Cap

BITCOIN

$2307 -0.94%

$37.971bn

ETHEREUM

$221.4 +9.5%

$20.68bn

RIPPLE

$0.176 -3.21%

$6.765bn

LITECOIN

$41.93 -4.84%

$2.183bn

ETHEREUM CLASSIC

$15.45 -2.03%

$1.448bn

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

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Cryptocurrency: Bitcoin Retains Gains as Hard Fork Fears Recede - DailyFX

Cryptocurrency mining is the process of using GPUs, or graphics cards, to invest in, and profit from, the value of digital encrypted currencies. In recent times there has been something of a boom in the value of cryptocurrencies, meaning that miners have been snapping up GPUs.

However, in the last few days there has been a swift decline in the value of both Bitcoin and Etherium, leading to many miners selling their GPUs. According to CoinDesk, there have been 260 entries on Ebay for 'Etherium mining rig', all bar three of which appeared online after July 11.

That date is significant because thats the day after Etherium hit its peak of $400 to put that in context it was only worth $10 a unit on January 1. The value of cryptocurrencies plummeted after that, with the market losing $10 billion over the weekend and Etherium hitting a low of $133, although it's since recovered to around $200.

If you want to take advantage of the sudden glut of GPUs on Ebay, youre going to have to know what youre looking at, as they are definitely packaged for the purpose of mining, even though they're essentially just powerful gaming GPUs.

It's worth bearing in mind that months (or years) of mining could shorten the life expectancy of graphics cards if they've been used a lot, but the savings you get may be worth the risk. As the rigs usually contain a number of GPUs specifically calibrated for mining, it will require a few friends and a little expertize to get your cheap GPU.

If plowing through mining rigs sounds like a lot of work, you may still see a discount in the price of GPUs in the coming months as the diminishing demand may well have a knock-on effect on GPU cost.

If we see any change in GPU prices, we'll let you know.

From CoinDesk

Via PC Gamer

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Now could be a good time to pick up a secondhand graphics card as ... - TechRadar

Hackers hijacked cryptocurrency trading platform CoinDash on Monday just as it was in the middle of its initial coin offering, or ICO. It's the first known breach of an ICO, this season's hottest fundraising method.

CoinDash, an Israeli startup, planned to raise capital by selling its own digital tokens in exchange for the cryptocurrency Ethereum , which is similar to Bitcoin . But just 13 minutes into the token sale, which began at 9 a.m. ET Monday, an "unknown perpetrator" hacked CoinDash's website and changed the address for sending investments to a fake one, the company later announced on its website . That diverted millions of dollars in contributions to the attacker.

While the CoinDash ICO still managed to raise $6.4 million from early investors, the hacker stole $7 million worth of Ethereum before the company was forced to pull the plug on the token sale. Despite the losses, CoinDash promised to dole out its tokens accordingly to everyone who participated in the ICO before it was shut down, whether or not they sent funds to the correct address.

"Reminder: We are still under attack. Please do not send any [Ethereum] to any address, as the Token Sale has been terminated," CoinDash said in the statement.

The incident is likely to put a damper on the enthusiasm surrounding ICOs. The offerings are similar to stock market initial public offerings, or IPOs. But there are two key differences: ICO investors receive cryptocurrency instead of equity, and the offerings face far less regulation.

ICOs have had a banner year. In 2017 alone, such token sales have raised at least $540 million, my colleague Jeff John Roberts reported in a recent Fortune Magazine story, "Why Tech Investors Love ICOsand Lawyers Dont." A month ago, a single ICO raised as much as $147 million; another raised $35 million in just 30 seconds .

The CoinDash hack is reminiscent of another large-scale Ethereum heist last year, when attackers breached a blockchain organization called the DAO and stole more than $50 million that had been raised in an ICO a month earlier. But the DAO hack occurred after the token sale had already ended.

To CoinDash, which hyped its ICO with modified promotional imagery for HBO's Game of Thrones , the breach is a blow both financially and in terms of its relationship with customers, some of whom suggested on social media that the attack could have been an inside job.

For its part, CoinDash pledged to investigate the breach and move on. "This was a damaging event to both our contributors and our company but it is surely not the end of our project," the company said in its statement.

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Hackers Just Stole $7 Million in a Brazen Ethereum Cryptocurrency Heist - Fortune

By Noel Randewich

SAN FRANCISCO (Reuters) - Shares of Advanced Micro Devices surged nearly 9 percent on Tuesday boosted by strong demand for its chips from cryptocurrency miners, leaving short sellers at a loss for the year.

A rally in cryptocurrency Ethereum has boosted demand for graphics chips used by people to "mine" it and other digital currencies, with some of AMD's processors sold out on Amazon.com and other retail websites.

Mining for cryptocurrency involves using networks of computers to validate transactions and prevent counterfeit by solving complex mathematical problems. New currency is generated as a reward to the computer operators.

The emergence of Bitcoin in 2009 made cryptocurrency mining popular. Recent rallies in the price of Bitcoin and newer digital currency Ethereum have rekindled interest.

Ethereum miners spending as little as $2,000 to build mining computers using graphics processing units, or GPUs, from AMD or its rival Nvidia could break even within three or four months, estimated RBC analyst Mitch Steves in a note to clients on Tuesday.

"We think economics suggests that GPUs continue to be sold out," Steves wrote. "We think GPU demand will remain robust as long as the return is under (about) one year."

As of Monday, AMD short sellers had been up about $15 million for 2017. But Tuesdays share surge left them at a loss of $125 million on paper for the year, according to S3 Partners, a financial analytics firm.

That follows losses of over $700 million for AMD short sellers last year, when the stock tripled.

The stock last traded up 7.3 percent at $12.06.

"There are going to be a lot of traders saying, 'This is the last straw. I'm out,'" said Ihor Dusaniwsky, S3's managing director of research.

AMD spokesman Drew Prairie acknowledged that interest from cryptocurrency miners was contributing to demand for the company's chips, but he stressed that game enthusiasts are the core market.

JPMorgan Chase, Microsoft Corp, Intel Corp and more than two dozen other companies have teamed up to develop standards to make it easier for enterprises to use technology related to Ethereum.

Adding to support for AMD's stock, Apple on Monday refreshed its lineup of Mac personal computers, including upgraded graphics chips from AMD.

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AMD rallies as cryptocurrency miners snap up graphics chips