First Crypto Index in Hong Kong
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CRYPTONAIRE WEEKLY CRYPTO Investment Journal
CRYPTONAIRE WEEKLY CRYPTO investment journal CONTENTS WEEKLY CRYPTOCURRENCY MARKET ANALYSIS...............................................................................................................5 TOP 10 COINS ........................................................................................................................................................................................6 Top 10 Coins by Total Market Capitalisation ...................................................................................................................6 Top 10 Coins by Percentage Gain (Past 7 Days)...........................................................................................................6 Top 10 Coins added to Exchanges with the Highest Market Capitalisation (Past 30 Days) ..........................7 CRYPTO TRADE OPPORTUNITIES ...............................................................................................................................................9 PRESS RELEASE..................................................................................................................................................................................14 ZUMO BRINGS ITS CRYPTOCURRENCY WALLET TO THE PLATINUM CRYPTO ACADEMY..........................14 INTRODUCTION TO TICAN – MULTI-GATEWAY PAYMENT SYSTEM ......................................................................17 ADVERTISE WITH US........................................................................................................................................................................19 -
Blockchain Law: the Fork Not Taken
Blockchain Law The fork not taken Robert A. Schwinger, New York Law Journal — November 24, 2020 I shall be telling this with a sigh Somewhere ages and ages hence: Two roads diverged in a wood, and I— I took the one less traveled by, And that has made all the difference. — Robert Frost Is the token holder — often the holder of some form of digital currency — always free to choose which branch of the fork to take? A blockchain is often envisioned as a record of a single continuous Background: ‘Two roads diverged in a sequential series of transactions, like the links of the metaphorical chain from which the term “blockchain” derives. But sometimes yellow wood’ the chain turns out to be not so single or continuous. Sometimes situations can arise where a portion of the chain can branch off A blockchain fork occurs when someone seeks to divide a into a new direction from the original chain, while the original chain blockchain into two branches by changing its source code, which also continues to move forward separately. This presents a choice is possible to do because the code is open. For those users who for the current holders of the digital tokens on that blockchain choose to upgrade their software, the software then “rejects about which direction they wish to follow going forward. In the all transactions from older software, effectively creating a new world of blockchain, this scenario is termed a “fork.” branch of the blockchain. However, those users who retain the old software continue to process transactions, meaning that But is the tokenholder—often the holder of some form of digital there is a parallel set of transactions taking place across two currency—always free to choose which branch of the fork to different chains.” See generally N. -
Is Bitcoin Really Untethered?
THE JOURNAL OF FINANCE • VOL. LXXV, NO. 4 • AUGUST 2020 Is Bitcoin Really Untethered? JOHN M. GRIFFIN and AMIN SHAMS∗ ABSTRACT This paper investigates whether Tether, a digital currency pegged to the U.S. dollar, influenced Bitcoin and other cryptocurrency prices during the 2017 boom. Using al- gorithms to analyze blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices. The flow is attributable to one entity, clusters below round prices, induces asymmetric auto- correlations in Bitcoin, and suggests insufficient Tether reserves before month-ends. Rather than demand from cash investors, these patterns are most consistent with the supply-based hypothesis of unbacked digital money inflating cryptocurrency prices. INNOVATION, EXCESSIVE SPECULATION, AND DUBIOUS behavior are often closely linked. Periods of extreme price increases followed by implosion, commonly known as “bubbles,” are often associated with legitimate inventions, technolo- gies, or opportunities. However, they can be carried to excess. In particu- lar, financial bubbles often coincide with the belief that a rapid gain can be ∗John M. Griffin is at the McCombs School of Business, University of Texas at Austin. Amin Shams is at the Fisher College of Business, Ohio State University. Helpful comments were received from Stefan Nagel (the editor); an associate editor; two anonymous referees; Cesare Fracassi; Sam Kruger; Shaun MaGruder; Gregor Matvos; Nikolai Roussanov; Clemens Sialm; and seminar and conference -
Bitcoin's Decentralized Decision Structure
Number 2019-12 July 16, 2019 Bitcoin’s Decentralized Decision Structure Ben R. Craig and Joseph Kachovec* With the introduction of bitcoin, the world got not just a new currency, it also got evidence that a decentralized control structure could work in practice for institutional governance. This Commentary discusses the advantages and disad- vantages of centralized and decentralized control structures by examining the features of the bitcoin payment system. We show that while the decentralized nature of the Bitcoin network “democratizes” payments, it is not obvious that the approach increases the equity or efficiency of markets or that the costs of the decentralized control structure won’t outweigh the benefits in the long run. In 2009, a paper appeared that established the philosophy The lack of central counterparties and regulatory authorities and implementation of Bitcoin (Nakamoto, 2009). Bitcoin in the Bitcoin network is viewed as a key benefit by many introduced an innovative approach to processing payments, of Bitcoin’s users. Indeed, a central revelation of the Bitcoin wherein a trusted third party in a transaction, such as a “experiment” is that a functioning payments system does bank, is replaced by anonymous people who verify the not necessarily need a central authority, such as a central accuracy and trustworthiness of the transaction over the bank, or even a bank of any kind. internet. The functions of a bank in processing a payment What are the possible advantages and disadvantages of a (establishing that the payer has the -
A Cryptocurrency Spectrum Short Analysis
Journal of Risk and Financial Management Review A Cryptocurrency Spectrum Short Analysis 1 2 3 Mircea Constantin S, cheau , Simona Liliana Crăciunescu , Iulia Brici and Monica Violeta Achim 3,* 1 Faculty of Automation, Computers and Electronics, University of Craiova, 200585 Craiova, Romania; [email protected] 2 Simona Liliana Crăciunescu, The Bucharest University of Economic Studies, 010374 Bucharest, Romania; [email protected] 3 Faculty of Economics and Business Administration, Babes, -Bolyai University, 400591 Cluj-Napoca, Romania; [email protected] * Correspondence: [email protected] Received: 30 June 2020; Accepted: 11 August 2020; Published: 17 August 2020 Abstract: Technological development brings about economic changes that affect most citizens, both in developed and undeveloped countries. The implementation of blockchain technologies that bring cryptocurrencies into the economy and everyday life also induce risks. Authorities are continuously concerned about ensuring balance, which is, among other things, a prudent attitude. Achieving this goal sometimes requires the development of standards and regulations applicable at the national or global level. This paper attempts to dive deeper into the worldwide operations, related to cryptocurrencies, as part of a general phenomenon, and also expose some of the intersections with cybercrime. Without impeding creativity, implementing suggested proposals must comply with the rules in effect and provide sufficient flexibility for adapting and integrating them. Different segments need to align or reposition, as alteration is only allowed in a positive way. Adopting cryptocurrency decisions should be unitary, based on standard policies. Keywords: cryptocurrencies; fraud; algorithms; correlations; impact; risks; regulation; blockchain 1. Introduction In the area of influence of computer science, the terms undergo rapid mutations, both in sense and interpretability. -
Bitcoin and Cryptocurrencies Law Enforcement Investigative Guide
2018-46528652 Regional Organized Crime Information Center Special Research Report Bitcoin and Cryptocurrencies Law Enforcement Investigative Guide Ref # 8091-4ee9-ae43-3d3759fc46fb 2018-46528652 Regional Organized Crime Information Center Special Research Report Bitcoin and Cryptocurrencies Law Enforcement Investigative Guide verybody’s heard about Bitcoin by now. How the value of this new virtual currency wildly swings with the latest industry news or even rumors. Criminals use Bitcoin for money laundering and other Enefarious activities because they think it can’t be traced and can be used with anonymity. How speculators are making millions dealing in this trend or fad that seems more like fanciful digital technology than real paper money or currency. Some critics call Bitcoin a scam in and of itself, a new high-tech vehicle for bilking the masses. But what are the facts? What exactly is Bitcoin and how is it regulated? How can criminal investigators track its usage and use transactions as evidence of money laundering or other financial crimes? Is Bitcoin itself fraudulent? Ref # 8091-4ee9-ae43-3d3759fc46fb 2018-46528652 Bitcoin Basics Law Enforcement Needs to Know About Cryptocurrencies aw enforcement will need to gain at least a basic Bitcoins was determined by its creator (a person Lunderstanding of cyptocurrencies because or entity known only as Satoshi Nakamoto) and criminals are using cryptocurrencies to launder money is controlled by its inherent formula or algorithm. and make transactions contrary to law, many of them The total possible number of Bitcoins is 21 million, believing that cryptocurrencies cannot be tracked or estimated to be reached in the year 2140. -
Exploring the Interconnectedness of Cryptocurrencies Using Correlation Networks
Exploring the Interconnectedness of Cryptocurrencies using Correlation Networks Andrew Burnie UCL Computer Science Doctoral Student at The Alan Turing Institute [email protected] Conference Paper presented at The Cryptocurrency Research Conference 2018, 24 May 2018, Anglia Ruskin University Lord Ashcroft International Business School Centre for Financial Research, Cambridge, UK. Abstract Correlation networks were used to detect characteristics which, although fixed over time, have an important influence on the evolution of prices over time. Potentially important features were identified using the websites and whitepapers of cryptocurrencies with the largest userbases. These were assessed using two datasets to enhance robustness: one with fourteen cryptocurrencies beginning from 9 November 2017, and a subset with nine cryptocurrencies starting 9 September 2016, both ending 6 March 2018. Separately analysing the subset of cryptocurrencies raised the number of data points from 115 to 537, and improved robustness to changes in relationships over time. Excluding USD Tether, the results showed a positive association between different cryptocurrencies that was statistically significant. Robust, strong positive associations were observed for six cryptocurrencies where one was a fork of the other; Bitcoin / Bitcoin Cash was an exception. There was evidence for the existence of a group of cryptocurrencies particularly associated with Cardano, and a separate group correlated with Ethereum. The data was not consistent with a token’s functionality or creation mechanism being the dominant determinants of the evolution of prices over time but did suggest that factors other than speculation contributed to the price. Keywords: Correlation Networks; Interconnectedness; Contagion; Speculation 1 1. Introduction The year 2017 saw the start of a rapid diversification in cryptocurrencies. -
What Keeps Stablecoins Stable?
What Keeps Stablecoins Stable? Richard K. Lyons and Ganesh Viswanath-Natraj∗ First version: December 21, 2019 (posted SSRN) This version: May 3, 2020 Abstract We take this question to be isomorphic to, "What Keeps Fixed Exchange Rates Fixed?" and address it with analysis familiar in exchange-rate economics. Stablecoins solve the volatility problem by pegging to a national currency, typically the US dollar, and are used as vehicles for exchanging national currencies into non-stable cryptocurrencies, with some stablecoins having a ratio of trading volume to outstanding supply exceeding one daily. Using a rich dataset of signed trades and order books on multiple exchanges, we examine how peg-sustaining arbitrage stabilizes the price of the largest stablecoin, Tether. We find that stablecoin issuance, the closest analogue to central-bank intervention, plays only a limited role in stabilization, pointing instead to stabilizing forces on the demand side. Following Tether’s introduction to the Ethereum blockchain in 2019, we find increased investor access to arbitrage trades, and a decline in arbitrage spreads from 70 to 30 basis points. We also pin down which fundamentals drive the two-sided distribution of peg- price deviations: Premiums are due to stablecoins’ role as a safe haven, exhibiting, for example, premiums greater than 100 basis points during the COVID-19 crisis of March 2020; discounts derive from liquidity effects and collateral concerns. Keywords: Cryptocurrency, stablecoins, fixed exchange rates, monetary policy, intervention JEL Classifications: E5, F3, F4, G15, G18 ∗UC Berkeley Haas School of Business and NBER ([email protected]), and Warwick Business School ([email protected]), respectively. -
From Tether to Libra: Stablecoins, Digital Currency and the Future of Money
From Tether to Libra: Stablecoins, Digital Currency and the Future of Money Alexander Lipton1, Aetienne Sardon2, Fabian Schar¨ 3, and Christian Schupbach¨ 2 1Sila, The Hebrew University of Jerusalem, Massachusetts Institute of Technology 2Swisscom, Digital Business Unit, Fintech 3Center for Innovative Finance, University of Basel [email protected], [email protected], [email protected], [email protected] I. INTRODUCTION of new technologies, such as Distributed Ledger Technology What first started as a niche phenomenon within the (DLT), has subtly diverged our focus away from ”how can cryptocurrency community has now reached the realms of we create value” to ”how can we use this technology”. multinational conglomerates, policy makers, and central banks. In order to prevent falling prey to deceptive innovation, From JP Morgan’s Jamie Dimon to Facebook’s Mark policymakers, incumbents, challengers and the general public Zuckerberg, stablecoins have made their way onto the alike should have the interest to develop a sound understanding agenda of today’s top CEOs. As projects like Libra have of stablecoins. enjoyed broad media coverage they are also increasingly III. WIR: A STABLECOIN PRECURSOR scrutinized by regulatory authorities, [1] [2] [3]. And as the term “stablecoin” spread, its meaning started to blur. This is The concept of devising a supplementary currency system problematic. An unclear definition may make us susceptible is not a new one. One of the most successful examples is to deceptive innovation, that is, reintroducing existing services the Swiss WIR Bank, formerly known as the Swiss Economic but in a different appearance. We ought to ask ourselves: are Circle. -
The Lightning Network - Deconstructed and Evaluated
The Lightning Network - Deconstructed and Evaluated Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) professionals, especially those working in the blockchain and cryptocurrency environment, may have heard of the second layer evolution of Bitcoin's blockchain - the Lightning Network, (LN). This exciting new and rapidly deploying technology offers innovative solutions to solve issues around the speed of transaction times using bitcoin currently, but expandable to other tokens. Potentially however, this technology raises regulatory concerns as it arguably makes, (based on current technical limitations), bitcoin transactions truly anonymous and untraceable, as opposed to its current status, where every single bitcoin can be traced all the way back to its coinbase transaction1 on the public blockchain. This article will break down the Lightning Network - analyzing how it works and how it compares to Bitcoin’s current system, the need for the technology, its money laundering (ML) and terrorist financing (TF) risks, and some thoughts on potential regulatory applications. Refresher on Blockchain Before diving into the Lightning Network, a brief refresher on how the blockchain works - specifically the Bitcoin blockchain (referred to as just “Bitcoin” with a capital “B” herein) - is required. For readers with no knowledge or those wishing to learn more about Bitcoin, Mastering Bitcoin by Andreas Antonopoulos2 is a must read, and for those wishing to make their knowledge official, the Cryptocurrency Certification Consortium, (C4) offers the Certified Bitcoin Professional (CBP) designation.3 Put simply, the blockchain is a growing list of records that can be visualized as a series of blocks linked by chains. Each block contains specific information - in Bitcoin’s case, a list of transactions and their data, which includes the time, date, amount, and the counterparties4 of each transaction. -
Cryptocurrencies and Their Impact on Crime a Brief History of Bitcoin/Crypto
Cryptocurrencies and their impact on crime A Brief History of Bitcoin/Crypto • 2008 Satoshi Nakamoto publishes the Bitcoin whitepaper • 2009 First Bitcoin transaction • 2010 Lazlo Hanyecz paid 10,000 bitcoins for two delivered pizzas • 2011 Bitcoin reached parity with the U.S. dollar for the first time (1 USD = 1 BTC) • 2012 First Bitcoin Halving Day observed • 2013 Total bitcoin market capitalization exceeded $1billion USD for the first time 2 A Brief History of Bitcoin/Crypto • 2014 Tokyo-based bitcoin exchange Mt. Gox begins to collapse • 2015 European Union issued its first ever ruling on bitcoin • 2016 Bitfinex was hacked • 2017 Japan categorized bitcoin as legal tender • 2018 Bitcoin the price dropped 60% • 2019 Hackers stole $41 million in BTC from Binance • 2020 The third bitcoin halving occurred 3 Characteristics of Bitcoin and other Cryptocurrencies • Private • Decentralized • Digital • Cryptocurrency 4 Classic bank payment / BTC payment 5 Bitcoin Blockchain • Highly durable • Highly portable • Highly fungible • Highly divisible • Highly resistant to counterfeiting 6 Bitcoin and Cryptography • A decentralized peer-to-peer network • A public transaction ledger (the blockchain) • Distributed mining and the “Proof-of-Work” consensus algorithm • A decentralized transaction verification system • Cryptographic hash functions • Public Key Cryptography (i.e. ECDSA) 7 Generating a Bitcoin Address https://bitcoinpaperwallet.com 8 Cryptocurrencies • Bitcoin • Bitcoin Cash • Litecoin • Privacy Coins (Monero, Zcash, Dash, Grin) • Ethereum -
Bitcoin Lightning Network
SED 605 Transcript EPISODE 605 [INTRODUCTION] [0:00:00.3] JM: Big blocks or small blocks? This is the fundamental question of Bitcoin scalability. The argument for big blocks is also known as on-chain scalability. Under this strategy, each block in this append-only chain of Bitcoin transaction blocks would grow in size to be able to support lower transaction fees and higher on-chain throughput. A set of Bitcoin users who supported this idea forked Bitcoin to create Bitcoin Cash, a version of Bitcoin that has a larger block size. The argument for small blocks asserts that scaling Bitcoin does not require a larger block size. Under the model of the small blocks, the scaling demands of the Bitcoin blockchain will be handled by sidechains. A sidechain is a network of person-to-person payment channels that only reconcile with the Bitcoin blockchain to checkpoint batches of transactions. These sidechains can be connected together to form the Lightning Network. Lightning Network is hard to implement. To implement a Lightning Network requires solving real- world distributed systems problems that are unprecedented. It's much more complicated than deploying a blockchain with a larger block size. In addition, opponents of Lightning Network suggest this will lead to a centralized banking system of being constructed on top of Bitcoin. Opponents of Lightning Network fear that instead of a decentralized payments network, the world of a Lightning Network would be a lower-cost version of the present-day financial system; a world in which JP Morgan and Blockstream would partner up to battle Coinbase in a decentralized, but actually centralized war for control of the unbanked.