Category Archives: Cryptocurrency

In just 24 hours, the new cryptocurrency Wifecoin, 'wife' and clone of Dogecoin, increased its market capitalization by more than 3,000%, should you buy?

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September3, 20214 min read

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Last July they launched the cryptocurrency Wifedoge , which is presented as the 'wife' of Dogecoin , but in essence it is a clone of it. In addition to being a curiosity of the 'crypto' world and having the 'like' of Elon Musk , the token surprised everyone this week with a growth of more than 3,000% in market capitalization in just one day, according to data from CoinMarketCap .

This Tuesday, August 31, the Wifedoge exceeded 2.32 million dollars in market capitalization , a figure 3,294.29% higher than the 68,350 dollars with which it began on Monday morning.

However, the 'wife' of the Dogecoin failed to sustain the streak and for this Thursday, September 2, its capitalization fell to $ 301,406 .

Source: CoinMarketCap.com

Wifecoin represents the 'inception' of cryptocurrencies , as it emerged as a parody of a digital currency (the Dogecoin ), which in turn was inspired by a meme to parody Bitcoin , so surreal!

The creators ensure that the value of each Wifecoin token will be equivalent to one Dogecoin . Excellent news, considering that the DOGE increased its value by 4.600% in one year and both Elon Musk and Mark Cuban see it as the strongest cryptocurrency.

In addition, they announced that they would reserve 5% of the Wifedoge units for Elon Musk .

"We will give them to you at the right time, otherwise 5% of the tokens will be forever blocked," reads a tweet from the Wifecoin account.

In fact, the developers of the new cryptocurrency 'meme of the meme' are so sure they have the endorsement of Elon Musk , that they thanked him for his support on Twitter.

Thank you Elon Musk. I am Wifedoge. Doge's wife! Now is the fourth launch day on Pancakeswap! Thanks for tweeting to cheer on Wifedoge. Trust us, we will soon surprise global investors even more. Our team is working hard, reads another tweet.

Should you invest in Wifedoge?

Experts assure that these vertiginous 'ups and downs' are caused by fraudulent manipulations of the crypto market, which generates multiple victims.

"The sharp ups and downs in the price of low liquidity assets are often the result of fraudulent manipulations known as 'pump and dump' and that consist of inflating their value and then selling it at overstated prices. The lack of regulations in the crypto market causes many investors become victims of this scheme, " said RT en Espaol .

The decision to invest or not in Wifedoge is like with any other cryptocurrency : if you have extra money that you are willing to lose in case things go wrong, then go for it. It never hurts to have some tokens in your cryptocurrency portfolio that could skyrocket more than 3,000% in 24 hours .

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What is the Wifedoge? Meet the cryptocurrency 'wife' of Dogecoin that grew more than 3,000% in one day and Elon Musk already 'liked' it - Entrepreneur

Cryptocurrencies are potentially looking at a new change in India as the government is planning on defining it as per a report by Economic Times. It was suggested that the government of India was proposing a new bill to segment cryptocurrencies on use cases sources informed ET. This would be a first for cryptocurrencies as they have never been categorized by the technology used. However, the governments focus, for the time being, is on the end-use of the asset for regulatory purposes the report mentioned.

This new bill is expected to outline the tax treatment of these digital assets and will define how they are classified in the book. It remained ambiguous as to whether the cryptocurrencies were considered currencies, commodities services or more equitable said the report. It eventually comes down to a matter of law, as the main concern with the ambiguity is in regards to how the asset is taxed or regulated. Till now, that has not been the case with cryptocurrency in India.

The first goal of the government in this matter is then to define the cryptocurrency sources told ET. It was also suggested that India should recognize crypto tokens as digital assets as opposed to a currency, while simultaneously clarifying the policies on exchange ownership parameters, KYC, accounting and reporting standards and so on, said the report.

It was also reported that only the cryptocurrency assets that were classified and defined by the government would be allowed to trade in India. The crypto coins would then be taxed accordingly. It was suggested that the government might apply a tax similar to the Security Transaction Tax (STT) going forward. In another line, these digital assets could also be subject to income tax if they are indeed classified as commodities. The income could be taxed as business income in the hands of the investors at the normal rates of income tax.

In the past the Reserve Bank of India had flagged the issue of cryptocurrency as it was not regulated nor did it have any prior framework in place. Having said that, this move by the government could be seen as a morale boost for Indian cryptocurrency investors. It could also see a rise in the spread of knowledge of the previously mysterious digital asset and could promote better investment opportunities.

While this does capture the attention of the industry experts, investors and crypto exchanges alike, one would have to wait and see what the new bill spells for crypto going forward in the country.

The global crypto market had seen some major fluctuations over the past few months. At present, the global market cap stood at $2.26 trillion, which was a 1.15 per cent increase over the day. The total crypto market volume over the last 24 hours was $131.49 billion, which pointed to a 2.52 per cent increase.

Bitcoin which is the leading crypto coin had a price of $49,927.54 on Friday. It maintained a market dominance of 41.51 per cent, although it did see a drop of 0.63 per cent over the course of the day. Other popular coins in the market include Ethereum, Cardano, Binance Coin and Tether.

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Crypto as Commodity: Government to Issue New Cryptocurrency Bill. Know the Details - News18

The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalise virtual currencies on the basis of their use cases, three people aware of the development told ET.

Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case payments, investment or utility.

This would be the first time cryptocurrencies will be categorised as per the technology they use, but the governments focus would be based on the end-use of the asset for regulatory purposes, sources said.

Whether for tax or for other purposes, there is no clarity as to whether crypto assets are currency, commodity, service or closer to equity.

This is a lacuna in the law, as unless an asset is defined, ambiguity of how it should be taxed or how it should be regulated becomes a question.

According to the people close to the development, the government is looking to first define cryptocurrency.

Crypto assets can be either categorised on the basis of the technology they use or they can be defined on their end use. So, before talking about how the regulations should work, the government has to spell out what it means by cryptocurrencies, said a person aware of the development.

ET had recently reported that crypto exchanges had made policy recommendations for regulating cryptocurrencies, including defining cryptocurrencies as digital assets and introducing a system to register home-grown exchanges.

They had suggested that India needs to recognise crypto tokens as digital assets, rather than currencies, and clarify policies in regards to exchange ownership parameters, KYC, accounting and reporting standards, among others.

There are more than 5,000 different cryptocurrencies, each with its own different legal characteristics. Therefore, rather than the cryptocurrency technology alone, regulation should be tailored according to the end-use or activity of a particular token, said Jaideep Reddy, leader - technology law at law firm Nishith Desai Associates.

People in the know said only the cryptocurrencies that are covered under the governments definition will be allowed to be traded in India.

These crypto assets will then be taxed accordingly, said people aware of the development.

The government could apply something similar to security transaction tax (STT) on the trading of cryptocurrencies as well, sources said.

Apart from that, if crypto assets are categorised as commodities, the returns could be taxed as business income in the hands of the investors on the returns at normal income tax rates.

The Reserve Bank of India (RBI) had flagged off issues around cryptocurrencies in the past.

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Govt plans to bring a bill, cryptocurrencies to be treated as commodity - Economic Times

Priya, a young engineering graduate, has been watching the craze for cryptocurrency investing boom in India. The popularity and growth of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Tether, Dogecoin have compelled investors and sceptics to take a second look. Around 15 million Indians are said to have invested in private crypto assets. Young investors like Priya are excited about the prospects of strong returns. She is planning to open a crypto trading account. However, she would like to understand each and every aspect of the crypto market before she starts investing in earnest.

A cryptocurrency (or crypto) is a non-physical, digital and decentralized currency that is issued by private systems and remains out of the purview of the government. It is a peer-to-peer system that can enable anyone anywhere to send and receive payments. Priya will need to store her cryptocurrency in a digital wallet. There were over 4,000 different cryptocurrencies in circulation worldwide, including the market giants Bitcoin, Ethereum, Litecoin, and Dogecoin. Much of the interest in these unregulated currencies is to trade for profit, with investors/speculators at times driving prices skyward.

Cryptocurrencies work using blockchain technology, a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security. Transactions cannot be altered or deleted and are hard for hackers to tamper with. In addition, transactions require a two-factor authentication process. The investor can add more and more digital transactions and the blockchain gets updated automatically.

While crypto trading is the current rage and may even yield potentially high returns, Priya must understand that cryptocurrency is an incredibly speculative and a volatile buy. The market is still in its infancy. Investing in something thats new comes with challenges, so she must be prepared for ups and downs, including some dramatic swings. If her investment portfolio or risk appetite cant handle that, cryptocurrency might not be a wise choice for her.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

Excerpt from:
Should you invest in cryptocurrency? - Economic Times

For new investors, cryptocurrency is the buzzword. As much as it is promising in terms of giving returns over a short time, it is also volatile and risky. The whole idea of cryptocurrency is based on a distributed ledger that stores information on every transaction or trade. Also, the trade is protected by high-grade cryptography. The simplest way of investing in cryptocurrency is by trading (buying and selling) of any crypto coin like Bitcoin, Ethereum, Dogecoin, Cadence, etc. These are done through online exchanges where investors open an account and start the trade.

What Is A Cryptocurrency Exchange?

These platforms facilitate cryptocurrency trading in exchange for digital and fiat currencies. They act as an intermediary between a buyer and a seller and charge a commission or transaction fee. CoinDCX, CoinSwitch Kuber, and UnoCoin are some examples of online exchanges operating in India. An investor can also use an online exchange to convert their crypto coins back into fiat currency (Indian Rupee or US Dollar) for withdrawing the amount from their bank account later.

How Does It Work?

A cryptocurrency exchange acts like an intermediary a brokerage firm between a buyer and a seller of cryptocurrency. It allows a buyer to deposit money using several methods like direct bank transfer, UPI, using debit or credit cards, etc. It charges a set commission or fee for every transaction done using its services.

The first thing a buyer (or investor) will need to do is to find the right online exchange. This step will require a fair bit of research about the platform's history, credibility, and what benefits it will offer you for trading. The next step is opening a trading account, which is fairly simple.

Download an app of the exchange you have selected and create an account. It will ask you for some information like your email address. It will then send a verification email to that address and may also ask for KYC details. Verify the address on your email id and complete the KYC process. Then set a password on the app and you are set to launch yourself in the world of cryptocurrency.

Do not lose any passwords related to the app, wallet, or exchange. They may not be recovered.

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What Is A Cryptocurrency Exchange? How To Start Trading In It? - NDTV Profit

Cream Finance has lost over $34 million in cryptocurrency after a cyberattacker exploited a vulnerability in the project's market system.

The decentralized finance (DeFi) organization is the developer of a lending protocol for individuals, with yields on offer for some cryptocurrency stakes. Assets on the platform include Ethereum (ETH), the AMP token, CREAM token, USDT, and COMP.

Cream said an attacker managed to exploit a vulnerability on August 31, leading to the theft of 462,079,976 in AMP ($24.2m) tokens and 2,804.96 ETH tokens ($9.9m), according to an update posted on September 1.

At current prices, this amounts to over $34 million.

In an analysis of the attack, with the assistance of PeckShield, Cream said an error in how the platform integrated AMP, leading to a reentrancy bug, was the source of the exploit.

"While unfortunate and disappointing, we take ownership of the error," the developers say.

Cream is now working with law enforcement to try and trace the attacker -- or, attackers, as the platform says a "copycat" was also in play at the time of the main attack. The second individual has a transaction history with Binance.

The organization has paused AMP supply and borrow functions until a patch can be deployed. The stolen ETH and AMP will be replaced, with 20% of protocol fees now earmarked to repay customers.

Cream says that if the attacker is willing to return the stolen cryptocurrency, they can keep 10%, without any consequences as a form of bug bounty payment. However, if others are able to provide a lead on the identity of the cyberattacker leading to their arrest and/or prosecution, 50% of the value of the stolen funds is on offer. as a reward

If neither offer is successful, "we will forward all relevant information to law enforcement authorities and prosecute to the fullest extent of the law," the company says.

This is not the first time Cream has fallen foul of a cyberattack. In February, the platform lost $37.5 million due to a flash loan exploit made via IronBank.

Earlier this month, DeFi platform Poly Network said an attacker exploited a vulnerability in the platform to siphon away roughly $610 million in cryptocurrency, including BSC and ETH. The thief has since returned the funds and is signed off as "Mr. White Hat" in Poly blog posts.

The company has returned assets to its rightful owners and is currently in the process of restoring cross-chain services.

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Cream Finance platform pilfered for over $34 million in cryptocurrency - ZDNet

The Department of Justice made a startling claim in a legal filing last week that cryptocurrencies or virtual currencies are not in all instances property for U.S. tax purposes.

The DOJ filed a formal answer on Aug. 27 to a complaint from Joshua and Jessica Jarrett, which they filed May 26 with a Tennessee federal district court (Case No. 3:21-cv-00419), seeking a refund of taxes they had paid in connection with their generation of Tezos digital tokens through their proof-of-stake activities.

By way of background, in 2014 the IRS issued Notice 2014-21, which was the agencys initial official guidance on the treatment of transactions involving virtual currencies. Using a FAQ approach, the IRS provided that virtual currencies are property and not fiat currency:

Q-1: How is virtual currency treated for federal tax purposes? A-1: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency."

"Q-2: Is virtual currency treated as currency for purposes of determining whether a transaction results in foreign currency gain or loss under U.S. federal tax laws? A-2: No. Under currently applicable law, virtual currency is not treated as currency that could generate foreign currency gain or loss for U.S. federal tax purposes.

In Revenue Ruling 2019 24 and additional FAQs posted on the IRS website at the same time in 2019, the IRS provided further guidance as to the treatment of virtual currencies. Q&A 2 in the FAQs posted on the IRS website reiterates what was stated in Q&A 1 in Notice 2014-31, which is that virtual currencies are property for U.S. tax purposes.

So, lets go back to the IRSs formal answer to the legal complaint from the Jarretts. In Item 30, responding to Paragraph 30 of the complaint, the Jarrets stated, Virtual currency is property for purposes of U.S. federal tax law. Given Notice 2014-21 and Q&A 2 of the FAQs, this statement would not have been expected to generate any controversy.

However, the DOJ response was that Paragraph 30 states a legal conclusion and that to the extent a response is required, the United States denies that virtual currency is in all instances property for the purpose of U.S. tax law. This statement directly contradicts Notice 2014-31 and the FAQs currently posted on the IRS website, and raises a number of questions.

One interpretation of this denial is that in the view of the DOJ and the IRS, despite the prior guidance to the contrary, virtual currencies can now be classified as something other than property or fiat currency and instead could fall into some third category. It is very unclear as to what that third category could be.

Another interpretation is that virtual currencies should be treated as fiat currency in some cases. If that is the case, then presumably the virtual currencies would be classified as a foreign currency since they are not U.S. dollars, such that the foreign currency provisions of Section 988 would apply. Note that under Section 988, foreign currency gains are generally taxed at ordinary income rates, not at capital gains rates. If Section 988 applies, could active traders take the position that a particular cryptocurrency is the functional currency for their trade or business? Does the $200 per transaction involving foreign currency held for personal use apply? Classifying virtual currencies as fiat currency likely raises far more questions and creates far more uncertainty than classifying them as property.

Time will tell as the DOJ addresses this issue in more detail in the pending litigation. Hopefully, any additional guidance will provide clarity rather than additional confusion and complications for holders of virtual currencies.

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Are the DOJ and IRS backpedaling on considering cryptocurrency as property? - Accounting Today

Curtis Sliwa, a beret-wearing Republican running to be the mayor of New York City, said one of the goals of his campaign is to focus on crypto.

In a Wednesday tweet, Sliwa said he would be focusing on creating greater financial inclusivity in New York City by opening more crypto ATMs and incentivizing businesses to accept cryptocurrency. According to his campaign website, however, the mayoral candidate currently only accepts donations in U.S. dollars using personal checks or credit cards.

Sliwa announced his intentions for the adoption of cryptocurrencies in NYC in June, before winning the Republican primary in the citys mayoral race. The founder of the crime-prevention group Guardian Angels and reportedly the owner of 16 rescue cats, he will face off against Democratic candidate Eric Adams in November.

Adams, who has also taken a seemingly pro-crypto stance by pledging to make New York City the center of Bitcoins, won the Democratic primary against former presidential candidate and crypto advocate Andrew Yang in July. Yang also claimed he wanted to make the city a hub for BTC and other cryptocurrencies.

Related: Miami mayor aiming for 'the most progressive crypto laws'

Some mayors of U.S. cities large and small have been pushing for the adoption of cryptocurrencies or otherwise taking a position in favor of digital assets. In August, Mayor Jayson Stewart of Cool Valley, Missouri proposed giving away more than $1 million in Bitcoin (BTC) to the citys roughly 1,500 residents. Miami Mayor Francis Suarez has also said he is a hodler and wants to make the Florida city attractive to those in the crypto and blockchain industry.

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Mayoral candidate pledges to make NYC 'most cryptocurrency-friendly city in the nation' - Cointelegraph

CHIAYI, Taiwan, Sept. 3, 2021 /PRNewswire/ --In what is likely the biggest digital theft in the history of decentralized finance in Taiwan, hackers have stolen about US$3.1 million worth of the cryptocurrency Tether from an antique dealer in Taiwan named Liu Kun-Hung.

According to local law enforcement officials in Chiayi, Taiwan, this cryptocurrency was being held in two Tether accounts in the United States, after Liu had made a US$3.1 million payment to the trader in that cryptocurrency.

In early July, Liu noticed that three transfers had been made from his Tether accounts to an unknown cloud wallet. However, neither he nor any of his associates who had access to Liu's accounts had made any such transactions.

Liu immediately changed the passwords to his accounts several times, but even that didn't stop the unauthorized transfers. He then reported the cyber theft case to the police. By that time, however, hackers had already relocated the stolen cryptocurrency to 5 different cloud wallets and emptied US$500,000 in cryptocurrency from one the accounts.

"They (the hackers) can steal our personal information from anywhere: from staff or employees, from the communication apps that we use, or even from the platform used to open the account in Taiwan," stated Liu. According to Liu, despite the fact that he changed his passwords several times and that an authorization code is required to make a transaction, the hackers were still able to access his accounts and conduct the heist.

Liu also filed a notice about the unauthorized activity with Tether. Eventually, representatives there were able to freeze the remaining US$2.6 million in the 4 unknown cloud wallets.

According to Taiwan's Criminal Investigation Bureau, investigators have already identified the hacker's internet protocol address, and this address is linked to a cloud-service provider in New Taipei City, Taiwan.

The police have stated while the case is still under investigation, based on the information obtained in the initial probe, it appears that the hackers stole the password and vital account information by hacking into the cell phone(s) of Liu's and/or his employees.

"I won't be the last victim," Liu declared. "Digital currency uses the most advanced technologies and is supposed to be resilient and powerful in protecting vital informationsecurity is one of the top reasons that we invest in it." He continued, "But apparently that is not the case here. So far, I've been very disappointed and frustrated, and I strongly urge Tether and its related operators to help protect others, especially foreign investors like me."

Like Bitcoin, Tether is a cryptocurrency. In fact, it's the world's third-biggest digital coin by market value. Tether, however, is very different from other virtual currencies. Launched in 2014, Tether is known as a "stablecoin," which is a type of digital currency that is tied to real-world assetssuch as the U.S. dollarin order to maintain a stable value.

Media ContactGeorge Hu886-919563599[emailprotected]

SOURCE Liu Kun-Hung

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In Tether Hack, US$3.1 Million Worth of Cryptocurrency Stolen from Taiwanese Antique Dealer - PRNewswire

Bitcoin fell back below $50,000 on Monday after reclaiming that threshold over the weekend.

The cryptocurrency traded at roughly $49,400 by the afternoon session, still shy of its all-time high above $64,000 set in April.

The space has seen a boost in the past week on increasing adoption. PayPal said Monday it would open its platform in the U.K. to crypto buying and selling, and Coinbase said last week that it would buy $500 million in cryptocurrency on its balance sheet.

Bill Baruch, president of Blue Line Capital, is a bitcoin bull but remains wary of jumping in right here.

"I think it needs to be in your portfolio, but is $50,000 the place to be buying it? I wouldn't chase it," Baruch told CNBC's "Trading Nation" on Monday.

Bitcoin fell below $30,000 during a summer sell-off. Weakness in recent months was largely tied to a regulatory crackdown in China wherein some mining operations were forced to close. Since a June low of $28,600, it has rallied 73%.

In a separate email to CNBC, Baruch said he owns bitcoin but began to trim his holdings once it bounced back to $45,000 roughly the same level as its 200-day moving average and a 50% retracement level measured from its April peak and its June low. He said that level could prove a good entry point if bitcoin falls back to it.

"Again, I think it's a great space to be in, but don't chase it just because you see $50,000 in the headlines. Pick your spots and stick to your game plan," he said.

John Petrides, portfolio manager at Tocqueville Asset Management, said there are more ways to play the bitcoin bounce than just through the asset itself.

"If you put your long-term investment hat on, there are two ways to look at this space one is cryptocurrency the asset class and then the second one is an investment in the blockchain. For our team specifically, from a long-term theme perspective, we think that blockchain has a lot of value to it," Petrides said during the same interview.

He plays the space specifically through the ETHE Grayscale Ethereum Trust, which solely invests in ethereum open source blockchain, and mirrors the value of the ethereum held by the trust. It has risen 105% this year.

"As the world moves to more non-fungible tokens, NFTs, as we see more big players like PayPal and Visa and others start moving and converging in this space, we think that's going to lead to more activity on the blockchain, and ethereum is the largest open source blockchain out there," Petrides said.

Disclosure: Blue Line Capital holds bitcoin. Petrides holds ETHE.

Disclaimer

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Bitcoin at $50,000: Traders on how to play the space after cryptocurrency briefly reclaims marker - CNBC