Category Archives: Cryptocurrency

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eToro, a social investment and trading network, has announced the launch of its Cryptocurrency CopyFund. This comes shortly after the total market cap of cryptocurrencies surpassed $100 billion.

On June 6, eToro announced the launch of its Cryptocurrency CopyFund, which will allow customers to invest in Ether and bitcoin. Over the last year, the number of eToro users trading cryptocurrencies has grown by a factor of four. Co-founder and CEO of eToro, Yoni Assia, said:

We have been seeing an increasing number of our clients looking for a simpler way to access investments in cryptocurrencies with a view to building a portfolio in the future. They were asking how to allocate their investments between the two largest cryptocurrencies that are traded on eToro, so we have launched an automatically rebalanced investment strategy to simplify their investments into this new exciting asset class.

eToro customers have previously accessed the cryptocurrency markets through CFDs (contracts for difference).

More and more traders and investors are learning about the potential of this market and getting involved. Now they will be able to access a long-term investment strategy that is constantly reviewed and rebalanced, Assia added.

In the Cryptocurrency CopyFund, holdings will be proportional to the market caps of individual cryptocurrencies. Once a month, the fund will automatically be analyzed and rebalanced. Structured as medium-to-long-term investments, CopyFunds require a minimum pay-in of $5,000. While there are no management fees associated with CopyFund investment, eToro does charge transaction fees.

eToro will expand its offerings of cryptocurrencies in the near future to encompass Ripple and Dash among others.

Based in Tel Aviv, Israel, eToro has millions of users in more than 170 countries. In December 2014, eToro raised $27 million from Chinas Ping An Insurance Company and Russias state-owned Sberbank. At the St. Petersburg International Economic Forum, eToro recently presented a pilot blockchain wallet in partnership with coloredcoins.org.

Matthew is a writer living in Los Angeles. He studied international economics at Georgetown University. Matthew is a full time staff writer for ETHNews and holds value in Ether.

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Cryptocurrency CopyFund Launched By eToro - ETHNews

The total market cap for all cryptocurrencies just surpassed $100 billion. The vast majority of these gains have come in just the last few months on April 1st the total market cap was just over $25 billion representing a 300 percent increase in value in just over 60 days.

While some of these gains are from bitcoin itself (BTC is up ~160 percent in the same two-month time frame), other digital currencies like Ethereum are also responsible for the increase, which on its own has increased ~439 percent over the last two months.

Theres perhaps no better way to show this diversity in gains than by looking at a chart of bitcoins dominance i.e. what percent of the entire cryptocurrency market cap is represented by bitcoin. For years this had always hovered around 80 percent, but in the last few months has fallen to below 50 percent with currencies like Ethereum and Ripple taking its place.

Source: coinmarketcap.com

Bubble talk?

Its hard to be an experienced investor, or even an at-home part-time trader, and not think of a massive bubble when you see that some asset has increased more than 400 percent in just a few months. Its just how history works when an asset rises that fast its a near certainty that it will come back down. Markets are irrational, after all.

So dont be surprised if theres at least some type of correction. There already was, a few weeks ago bitcoin pulled back from a high of $2,700 to around $2,000, but, as of today, has slowly climbed back up to a new all-time high of ~$2,850.

That being said, we may look back in 12 months and realize that this two-month period of insane growth was less of a bubble and more of a rebirth of cryptocurrencies as a whole.

The fact that these gains have come from currencies other than bitcoin are a good sign that this is less of a bubble and more of a resurgence of interest in crypto. It makes sense that Ethereum is on a tear the cryptocurrency has technological improvements over bitcoin, including the ability to code smart contracts directly into the blockchain, which in turn allow for things like the ability to build totally new tokens and even host ICOs (initial coin offerings).

And similarly, Ripple, a cryptocurrency based on inter-bank settlements, has signed up more than 100 banks worldwide. Even if this takes a while to implement (which anyone who works in the old-school banking industry will confirm), its still tangible news and a reason for people to get excited about the currency.

These recent developments certainly dont justify increases of 400 percent in 60 days. Both Ethereum and Ripple have been around for a lot longer than a few months. Soif these were publicly traded companies, there would be (almost) no reason for drastic rise in value. But cryptocurrencies are new most of the world has no idea what bitcoin is, let alone Ethereum and Ripple and other currencies.

The public has never been able to put their money directly into a technology that has so much potential but is still developing.

For example, a technology enthusiast in the 1990s may have foreseen the rise of the internet, but had no way to directly take a stake in the technology.The idea of applying cryptography to the storage and transmission of data is still very new. And the fact that anyone can directly buy the currency that powers these cryptographically securedblockchains is much like the public actually getting a chance to invest in the internet during its infancy.

There is one rational explanation that, if true, would totally justify this rapid increase in price across some of the major cryptocurrencies. And that is, maybe these currencies are actually worththese high prices, and maybe even worth many times more than that at which they are currently trading.

But the problem is we have no way to figure out their value. Cryptocurrencies arent public companies with earnings and expenses and EPS. For example, we can look at Apples financials and determine its book value what the companys assets would be worth if hypothetically liquidated today. Of course, stocks trade at a premium to this, because people are enthusiastic that Apple will continue to perform well and this book value will continue to rise.

But we cant do this with cryptocurrencies. We could guess and compare it to things like the total money or gold supply in the U.S. For example, if youre someone who thinks of cryptocurrencies as a store of value, the total estimated value of all gold in the world is more than $8 trillion dollars meaning if bitcoin would ever replace or supplant gold, its current value is pennies on the dollar.

If youre someone who thinks of cryptocurrencies as a genuine currency, you could compare the market cap to M2, which is the total money supply in the U.S. cash and checking accounts, as well as near-money accounts like savings, mutual funds and money-market securities. The total value of M2 is about $13.5 trillion, also meaning cryptocurrencies are just a small fraction of that.

Ive long cautioned readers (and friends) from buying cryptocurrencies because they have seen it rise and just want to make a quick buck. The past two months have led to a tremendous surge in public interest, with mainstream news like CNBC and CNN explaining how to invest in bitcoin and other cryptocurrencies.

Just make sure youre doing it for the right reasons. Buy cryptocurrency to learn about it and transact with it. Or buy it because you are betting that this new technology will change the world by:

These are just a few options, and if youre in tune with the cryptocurrency world, youll know the opportunities are endless. So if youre going to buy cryptocurrency, do it because you see the long-term vision (and sure, ostensibly the financial gains that may come from them), not because you think it will blindly appreciate and give you a good return on your investment.

The author holds bitcoin and Ethereum and other smaller cryptocurrencies.

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What the hell is happening to cryptocurrency valuations? - TechCrunch

The blockchain and crypto industry is currently replete with innovations looking to advance the technology and bring about the best results. But could there be a missing link, which when identified can lead to better investments and proper mitigation of risks?

A section of the industry insiders believe that Derivatives could be that missing link, and introducing derivatives to the blockchain could possibly enable investors to better mitigate risks involved in trading cryptocurrencies and allow them to hedge their bets. The success of derivatives has already been proven in the world of securities trading, which can be replicated in the crypto world as well.

The benefits of derivatives will be wide ranging as they will include non-stop trading, instantaneous transactions for fraction of the current fee, nearly no need for third parties except for traditional assets, no downtime, no DDOS type attacks, anonymity and the possibility to execute trades without logging in.

The process of bringing the power of derivatives to the blockchain community is being spearheaded by DCORP. DCORPP has created a platform that will allow derivatives trading in the form of smart contracts on the Ethereum blockchain where the exchange exists. Users will be provided with a friendly interface and since the exchange is decentralized and operates autonomously there is no need for intermediaries like market makers, bankers or third parties.

The exchange will generate value for the investors, the proceeds of which can be used by DCORP to carry out its venture capitalist activities. DCORP being autonomous and democratic, will, in turn, lead to the democratization of venture capitalism.

Derivatives trading has the potential to unleash revolutionary change in the way cryptocurrencies are traded today, as more investors are bound to be attracted by the opportunity to use hedging mechanisms, which will only enhance the value of blockchain.

The ability to enter derivatives contracts anonymously will also provide additional value to investors and they will also be able to trade existing derivatives contracts by sending Ether to them.

Investors stand to benefit by harnessing the power of derivatives. Traditional derivatives like futures and options will be available, and the investors will also benefit from Futures with Ascending Stakes. The whitepaper elaborates upon the type of derivatives that will be made available on the exchange.

There is also a plan to use the blockchain and smart contract technology to enable talented entrepreneurs and ventures to gain access to funding. DCORP will make it possible for anyone to join the organization either as a shareholder or as a talented contributor. Investors can also participate in the ongoing DCORP crowdsale.

The DCORP exchange promises complete transparency in its operations as the Board of Directors will comprise of 7 elected individuals. Frank Bonnet, the founder of DCORP who will also be a member of the Board of Directors, explains that the voting behavior of the members will be recorded on the blockchain, public and immutable. The members can also be replaced by submitting a proposal and getting the token holders to vote in favor of it.

DCORP intends to carry out a streamlined democratization of venture capitalism, which is not only an interesting idea but also novel, as it enables even non-technical persons to benefit from it.

The introduction of derivatives to crypto can only generate further investor interest as it brings in an element of risk management to venture capitalism.

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Derivatives The Missing Link in The Cryptocurrency World? - newsBTC

Imagine an online gambling ecosystem that is decentralized, meaning that it cuts out the typical middleman between a game-maker or betting operator and the player or bettor. Thats the pitch of Russian company DAO.Casino, a decentralized platform for online gambling operators that runs on the Ethereum blockchain.

In its white paper on the developer site Github, DAO.Casino says it can solve common headaches of online gambling that afflict both game developers and game players, such as: fraud risk; hidden fees; high cost of entry for game developers; operational overhead; player access to funds; player withdrawal delays; and general lack of trust.

If that sounds like a mouthful, lets take a step back. In the cryptocurrency world, much of the press and attention right now is around bitcoin, since the price of bitcoin is flying: its up 200% in 2017 so far.

But the price of a rival cryptocurrency, ether, has seen a bump as well: its up 174% in the past month, to $263. Ether is the currency of the Ethereum network, which is a blockchain for smart contracts.

Price of ether in 2017. (CoinMarketCap)

While bitcoin runs on the bitcoin blockchain, a decentralized, permissionless ledgerand blockchain technology originated with bitcoin in 2009Ethereum runs on its own blockchain specifically designed for smart contracts.

Smart contracts are coded agreements that live in a permanent address on the Ethereum chain. These agreements can interact with other contracts to automatically enact functions.

In other words, smart contracts is a fancy way of saying computer programs. For example: on Ethereum, we could exchange the title deed to a car, directly from seller to buyer. In a recent Cognizant survey of 578 financial service firms, 78% of respondents said their firm is exploring multiple blockchain platformsof those, 49% listed the bitcoin blockchain, 42% said Ethereum.

While bitcoin is soaring as a speculative investment, there arent yet obvious mainstream uses for the currency beyond trading and holding it; many in the industry await the killer app for bitcoin.

There is arguably more excitement right now around the uses of Ethereum, since it was created specifically for smart contracts (not for the currency, which is just an incentive token for developers). TechCrunch writes that Ethereum is poised to overhaul open-source development. And Ethereum founder Vitalik Buterin (just 23 years old) met with Vladimir Putin this week, who praised Ethereum.

That brings us to DAO.Casino, one of the many startups that believes it can solve a problem using Ethereum. On June 29, DAO.Casino will launch an ICO (initial coin offering), a popular new way of raising money for cryptocurrency startups in which investors buy up the startups own coin and pay for it with a more established coin. Ethereum did its own ICO in 2014, in which investors bought ether using bitcoin. An ICO typically lasts for a month. Think of an ICO as the equivalent of a VC round for cryptocurrency startups. In DAO.Casinos ICO, it will sell BET, its own token, in exchange for ether.

Just dont associate DAO.Casino with The DAO, a leaderless, decentralized network that launched in May 2016 (via an ICO that exchanged tokens for ether) as a platform for Ethereum-based projects and was quickly hacked, one month later, to the tune of $50 million. The entire Ethereum blockchain had to perform a split known as a fork in order to restore all the funds stolen in The DAO hack.

DAO.Casino is not an actual casino itself, but an open protocol for online gambling companies (like an online casino, blackjack game operator, or sports betting site) to build on. (DAO.Casino will also build its own branded games.) It isnt aimed at the end userif an online betting site were to use it, the bettor wouldnt have toknow or see that theyre using a system built on Ethereum. (I could even develop my own gambling site on top of DAO.Casinos protocol and pay out users in BET tokens, but rename them Dancoins.) The companys hope is that online betting sites will integrate with its network to offer games without the casino, a middleman that takes a big cut and may not always be trustworthy.

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If youre confused, dont feel bad. In a blog post back in March, the company addressed the confusion its name creates. Many people wonder why do we have DAO in our name, when the term has previously been associated with a hacked investor-directed venture capital fund. They think and we dont blame them for it that is somewhat an extension of an organization whose security loop couldve cost them millions worth of ether. The post goes on to acknowledge that using the DAO acronym is somewhat giving us bad publicity.

Nonetheless, the company embraced the DAO acronym because of what it stands for, a decentralized autonomous organization (which any blockchain-based project is), even if it now carries the stink of The DAO.

Of course, online betting operators may be hesitant to jump on an Ethereum-based protocol for reasons that have nothing to do with DAO.Casinos name.

For starters, the entire cryptocurrency space still has an air of distrust to it; blame the high-profile Silk Road drug market trial, or periodic hacks of bitcoin exchange sites, all of which stoke negative headlines. As one West Coast bankruptcy lawyer, who wishes to remain anonymous, tells Yahoo Finance, I get clients all the time that say, I want to take X and make it better by using cryptocurrency, and its always either a way to try to get around something illegal or it solves a problem that really didnt exist.

Keep in mind also that online gambling (or iGaming) is still illegal in most states in the US, even when the website taking a bet is based outside the US. But online gambling thrives outside America, and is a $46 billion market globally.DAO.Casino could face regulatory scrutiny in the US, even though the company would likely make the argument that it is just an Internet protocol, not the gambling operator.

As of January, nearly 25% of all smart contracts on Ethereum were game-related. Thats why DAO.Casino CEO Ilya Tarutov honed in on a gambling protocol. Traditional server-based online gambling sites dont engender enough trust, he says, but using a decentralized network can add transparency.

Tarutov explained it to Coin Telegraph thusly: Game outcomes are determined by equally unpredictable pseudorandom values, and anyone can audit this. Once the game software is audited and deployed, no one can fiddle with it and change it.

To ensure fairness of games, DAO.Casino implements randomness through PRNGs (pseudorandom number generators), and incentivizes users who develop new games, fund the development of new games, operate casinos, and contribute random-number algorithms by rewarding them in BET tokens. The games built on DAO.Casino will operate in BET. (Grossly simplified, Tarutov explains, BET is a security measure.)

For now, DAO.Casino is in beta, and offers a simple dice game as an example of what it can do. More games are coming, Tarutov says, from online gambling operators ready to put their games on DAO.Casinos testnet. In the next few days, the site will add a blackjack game.

You can register right now and youll get a free token to try these games. But their real purpose is to show developers, Tarutov says, that it is possible to implement serverless and fast PRNG methods on Ethereum. It shows that theres hope and direction. Were confident that we can implement one more method before the end of this year which is suitable for multiplayer games. But this is just a start.

Daniel Roberts closely covers bitcoin and blockchain at Yahoo Finance. Follow him on Twitter at @readDanwrite.

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DAO Casino wants to use cryptocurrency to disrupt online gambling - Yahoo Finance

The consequences of allowing a cryptocurrency takeover, or trying to head one off FT Alphaville (registration) In this guest post, economics professor and former Bank of England economist Tony Yates talks about the potential for cryptocurrencies to compete with government-backed money, and what central banks can do about it. The total value of all ...

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The consequences of allowing a cryptocurrency takeover, or trying to head one off - FT Alphaville (registration)

Cryptocurrency enthusiasts all over the world are keeping a close eye on the way things are evolving as of late. The world of Bitcoin and other currencies is nothing short of amazing right now. At this rate of growth, the entire cryptocurrency market cap will surpass US$100bn in the coming days or weeks. That is absolutely unprecedented, and perhaps only a sign of things to come.

Everyone is well aware of how Bitcoin and other currencies have seen their share of ups and downs. It would be rather strange to see things go up all the time, as that would ultimately result in a massive cryptocurrency bubble. Sometimes, a good correction will pave the way for future value gains, which is exactly what the cryptocurrency world is showcasing right now. As a result, we are getting very close to the illustrious US$100bn market cap.

To put this into perspective, the cryptocurrency market cap has never been worth US$100bn to date. To some people, that may come as a surprise, given the thousands of coins, assets, and tokens in circulation right now. The blatant truth is how the vast majority of cryptocurrencies have been considered to be worthless for quite some time now. Even though a lot of coins still dont have any major value, the ones that actually offer something interesting are finally getting some positive attention.

Bitcoin is still the dominant cryptocurrency in terms of market cap, with US$42.1bn. It is quite interesting to note the ENTIRE cryptocurrency market cap was worth less than that just a few short months ago. Ethereum is not too far behind, with a US$22.5bn market cap at the time of writing. The top five is completed by Ripple with their XRP asset as well as New Economy Movement and Ethereum Classic. Litecoin is very close to ETC, and their market cap positions switch quite regularly in favor of one or the other.

Despite Bitcoin still being the top dog, the Bitcoin Dominance Index is changing in favor of alternative solutions. Bitcoin represents 44.5% of the entire cryptocurrency market cap, a number that seems to drop lower and lower every single week. That is a good thing, though, as it shows a lot of investors are diversifying their portfolio. There are many baskets to put eggs in, even though Bitcoin is often considered to be the safer investments compared to alternative options.

All of this results in the cryptocurrency market cap being a hair away from US$95bn. For an industry which has only been around nine years, that is quite amazing. It also goes to show all of the negative media attention has done nothing to discredit Bitcoin and other cryptocurrencies in the slightest. Albeit there is no mainstream adoption to speak of right now, things are slowly evolving in a rather interesting direction. It will be intriguing to see how things evolve next.

Once the cryptocurrency market cap surpasses US$100bn, all bets are off. We have seen a lot of money flowing into cryptocurrency over the past seven to eight weeks. This rate of growth is simply unprecedented, and there is no point in trying to predict the future. It is certainly possible this is only a glimpse of what the future may hold for cryptocurrency as a whole. The bigger question is which coins will surprise us next, as we have seen some spectacular value changes over the past few weeks already.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

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Total Cryptocurrency Market cap Will Reach US$100bn Very Soon ... - The Merkle

Cryptocurrency ICOs are quite popular these days. Not only are they accessible to the general public, but there is also a good chance to buy cheap tokens and see them appreciate in value over time. That does not mean ICOs are not without risks, though, as there are always some potential drawbacks when making investments. Below are some advantages and disadvantages related to cryptocurrency ICOs.

As the name somewhat suggests, an ICO is an initial coin offering. This means investors are often buying coins or tokens for a project that does not even fully exist yet. In most cases, the team will have some degree of code to show what the project will look like. However, there is no guarantee of projects ever being completed or even being embraced by mainstream users. This is a risk people need to be willing to take, as it may take years until there is an actual market for the project in question.

Speaking of investors, the majority of ICO investors are enthusiasts, rather than people with expertise. Backers have a financial stake in the process, but an ICO is not regulated or registered. This means users will not be reimbursed if something were to go wrong. This is something a lot of people tend to overlook these days, even though it has become less of an issue ever since smart contracts were used to lock up ICO funds.

Additionally, not everyone will be able to partake in every ICO these days. This is especially true on the Ethereum network, as a lot of ICOs sell out in less than 30 minutes. Partaking in such an event means users need to send a transaction at a much higher fee to ensure their transfer is picked up in a network block. This higher cost just to participate in an ICO is not a positive development by any means. Then again, it is only a minor drawback to most people, albeit still important to keep in mind.

The fact that ICOs are open to the general public means anyone in the cryptocurrency industry can partake if they can get funds transferred on time. This means the projects can raise funds in a completely decentralized manner, which is quite important. More investors from all over the world means there is less centralization, which is what cryptocurrency is all about.

Moreover, the concept of cryptocurrency ICO means people can help shape the future of this entire ecosystem. There is a wide range of different projects raising funds through an ICO, and every single project aims to bring something new to the table. Moreover, virtually all of these projects raise a lot of money in the process of their ICO taking place. Multi-million dollar projects are very common in the world of cryptocurrency ICOs.

Perhaps the biggest advantage to speculators, that is is how the tokens can be bought at a low price. Most exchanges will eventually enable trading of these tokens, where they can be sold for a profit if the project is successful. Ethereum-based tokens have a habit of appreciating in value by quite a magnitude. Value gains of over 1,000% over the course of a year or less are quite common, regardless of the projects being finished by that time. From a speculative point of view, cryptocurrency ICOs are more than worth getting involved in. This could ultimately become the downfall of these projects as well, though, but only time will tell if that is the case.

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Cryptocurrency ICOs Advantages vs Disadvantages - The Merkle

Quartz

The new cryptocurrency gold rush: digital tokens that raise millions in minutes Quartz The cryptocurrency world has gone mad for token offerings. These launches, popularly known as ICOs or initial coin offerings, have already raised more than $150 million this year, according to research firm Smith + Crown. They are seen as a disruptive ... Bitcoin rival ethereum hits another record high, marking a more than 2800% rally this yearCNBC Luno's plans for Ethereum and the future of BitcoinMyBroadband all 3 news articles »

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The new cryptocurrency gold rush: digital tokens that raise millions in minutes - Quartz

New York Post

How to get a start in the cryptocurrency game | New York Post New York Post As bitcoin reaches for $2500 again, I thought this would be a good time to let readers know exactly how digital currencies work and how to get more information. Cryptocurrency: An idea whose time has comeThe Hindu Small-Ticket Investments from Individuals Flood Asian Cryptocurrency MarketnewsBTC Cheap cryptocurrencies you can buy - Blasting News USBlasting News Forex Crunch -International Business Times -The Sun Daily all 30 news articles »

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How to get a start in the cryptocurrency game | New York Post - New York Post

As more and more people from around the world are turning to cryptocurrency trading, sending many blockchain tokens to all time highs, companies in the field are apparently trying to capitalize on the massive rally and draw new investments while the subject isdominating mainstream financial news.

San Francisco-headquartered Bitcoin wallet and exchange Coinbase is set for another funding round, this according to a report in the Wall Street Journal.

The London Summit 2017 is coming, get involved!

Coinbase is reportedly seeking to secure at least another $100 million for its global operations. The valuation by which the firm is offering the investment opportunity gives it the biggest ever price tag for anycryptocurrency firm $1 billion.Coinbase has previously raised approximately $116.5 million from investors including Andreessen Horowitz, Union Square Venture and more, divided between several rounds.

Back in March, New Yorks financial regulator, the state Department of Financial Services (DFS), announcedthat Coinbases licensing application to offer Ethereum and Litecoin wasapproved.Coinbase thus joined four other rivals that previously gained BitLicenses from the DFS to operate in New York.

The firm also recently announced that it is takingnewsteps in its transition to a truly global organisation with big plans for the year ahead.

The first step itrevealed isthe opening of a new office in London, whichwill serve as the hub for Coinbases European operations.

Additionally, it announced the addition of two new trading pairs at GDAX, its institutional digital asset exchange. Customers in Europe can now trade Ethereum and Litecoin on Coinbases ETH/EUR and LTC/EUR books.

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Coinbase is Seeking Another $100m, Biggest Round for a Cryptocurrency Firm - Finance Magnates