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March 2007

Bitpoint Hacked for $32 Million, Another Example of Crypto’s Volatility

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Bitpoint

Bitpoint

A Tokyo-based cryptocurrency exchange called Bitpoint has suspended operations after it lost $32 million to a hacking last night.

The company that runs the exchange, Remixpoint, discovered that ¥3.5 billion worth of various digital currencies had disappeared under its management.

Bitpoint Hacked and Suspends Operations

According to the exchange, the funds went missing from a hot wallet (a wallet connected to the internet), but other funds held in cold wallets or offline haven’t been affected. The hacking was brought to light when an error appeared in the exchange’s outgoing funds transfer system.

Roughly ¥2.5 billion worth of the missing currency is owned by its customers; the rest is owned by the firm. The company has said it will compensate the customers for the loss. Soon after the announcement, shares in Remixpoint plunged almost 20%.

Though we know the amount taken, Bitpoint has not detailed what exact virtual coins were stolen; however, it holds various cryptos including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

At present, Remixpoint is analyzing the hack and has given no further details.

Cryptocurrency Hacking

The Bitpoint hack is further proof of the danger with cryptocurrency. So far in 2019, there have been eight large-scale crypto exchange hackings resulting in the loss of millions of dollars.

The most recent hack happened on June 27, when Singapore-based exchange Bitrue had $4.2 million stolen.

Prior to that, on June 6, crypto exchange GateHub was also a victim of a hack whereby nearly $10 million worth of Ripple (XRP) was stolen.

In May, major exchange Binance faced its second major hacking. The hackers withdrew 7,000 Bitcoin, valuing approximately $40 million USD at the time.

>> Ripple (XRP) Slips Below $0.34 Mark as Selling Intensifies

Hacking is a notorious issue in the crypto-space; hacks claimed $1.7 billion USD in 2018 alone.

Hacks have even managed to shut down exchanges completely. In 2017, the South Korean exchange Youbit shut down and filed for bankruptcy after two separate hackings.

Tokyo-based MtGox exchange faced the same fate. At one time, it handled almost 80% of all global Bitcoin transactions; however, it was shut down in 2014 after 850,000 Bitcoins (worth half a billion US dollars at the time) was stolen from its wallets.

What do you think about the Bitpoint hacking?

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China’s Cryptocurrency Rankings | EOS Comes Out on Top

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China's Cryptocurrency Rankings

China's Cryptocurrency Rankings

EOS still maintains the top spot in China’s cryptocurrency rankings list. The superpower updated its list last week, proving that EOS is still the favorite. Bitcoin has climbed up three places and now sits in 12th position.

Considering Bitcoin is up 10% to press time and approaching the $9k mark, its a wonder why it hasn’t ranked higher on the list. Well here’s why:

China’s Cryptocurrency Rankings

The rankings list assesses three criteria: technology, application, and innovation.

The top five were as follows: EOS, TRON, ETHEREUM, STEEM, and ONTOLOGY.

Despite the original cryptocurrency Bitcoin being the leading coin by market cap, it only managed to place in 12th. It scored well for creativity but lacked in basic technology.

The rankings are funded by China’s Ministry for Industry and Information Technology and were released by the Center for Information and Industry Development.

Moving forward, the body plans to update the list once every two months instead of monthly.

Eos has held the top spot since June 2018, while Tron has managed to stay in second place since February 2019.

Crypto’s In Green

The entire cryptomarket is experiencing double-digit gains today. China’s cryptocurrency rankings favorite, EOS is up 17.67% and selling for $7.45 per coin.

As stated, Bitcoin is holding firm above $8k—it is currently selling for $8,863 and up 10.87%.

The original cryptocurrency has been on a continued bull run this month. May has seen it pack on whopping gains of 65%.

Will The Gains Continue?

Recently, Bitcoin enthusiast and crypto fund manager, Brian Kelly, spoke to CNBC’s Fast Money and predicted that Bitcoin price will continue to rise. One reason for this is the approaching “halvening” that will see Bitcoin mining rewards cut in half. The halvening won’t happen until 2020, but until then, miners are expected to hoard BTC and this increasing demand will see Bitcoin price rise as the supply becomes lessened.

>>Is Facebook Launching its GlobalCoin Cryptocurrency Next Year? BBC Says Yes

Of course, Bitcoin remains as volatile as ever. Only one day after the coin passed the $8k mark, it plunged 10% back to $7,200 USD. While it has indeed paired those losses once again, never become too comfortable in this market. Another major dip is easily around the corner, especially if Bitcoin has been on an extended bull run.

What do you think of China’s cryptocurrency rankings list? Is EOS your favorite?

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Bitmain Co-Founder Starts Legal Battle to Regain Control

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Bitmain

Bitmain

Bitmain co-founder Micree Zhan Ketuan has initiated legal proceedings to regain control of the company with the filing of a summons in the Cayman Islands.

Bitmain Technologies is one of the largest crypto mining firms in the world and has been caught in turmoil since October when the company’s other co-founder, Jihan Wu, announced Zahn’s departure from the firm, saying, “Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately.”

Zhan responded by saying he had been ousted from the company he had helped found in 2013, saying, “I didn’t realize until then that those scenes in TV shows, where you get stabbed on your back by those partners you trusted and ‘brothers’ you fought together with, can really happen in real life. […] Bitmain is our child. I will fight for her till the end with legal weapons.”

Zhan lost his voting say in Bitmain in November when shareholders voted to convert the company’s Class B shares to only one vote per share, having previously been worth 10 votes per share. Zhan reportedly owned nearly 4 million Class B shares, almost twice as much as Wu, who is the only other holder of the special Class B shares.

The legal wrangle comes at a difficult time for Bitmain, which is reportedly weighing up laying off half of its staff ahead of the Bitcoin halving later this year. Every four years, the reward granted to Bitcoin miners for adding a block to the blockchain is cut in half as a measure to keep Bitcoin’s inflation in check. As a result of the reduced returns, Bitmain is considering implementing what it describes as a “personnel optimization plan.” The company will hold its AGM on January 17, by which time the layoffs are already expected to have been announced.

>> Ripple Intends to Expand Further in Brazil Later This Year

Bitmain had previously abandoned plans for an IPO in March after the company’s Hong Kong stock market proposal listing expired earlier this week. The company plans to reapply at an appropriate time in the future, but an exact date remains unclear.

Featured Image: DepositPhotos © Grey82

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Ripple’s XRP Outperformed in Q2 2019 as the Token Seeks More Transparency

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Ripple

Ripple

The crypto winter kept cryptocurrency markets in the grip for almost two years until sometime this year, but in this period of grey, one asset stood out. Ripple’s XRP continued to perform well within expectations.

XRP’s Strong Performance in Q2

Ripple has indicated that XRP sales in the first and second quarters of 2019 have increased, which furthers asserts XRP’s immunity to the wild fluctuations in the cryptocurrency industry. Despite the company having large hoards of XRP, they have been restricting sales for the most part. Even still, in Q2 2019, the company managed to sell more than $250 million worth of XRP. Ripple has indicated that it will further reduce future XRP sales.

The last 18 months have been interesting for cryptocurrencies, assets, and tokens. There have been discussions about the possibility of having fake trading volumes, confusion of market information, as well as improper supply calculations by CoinMarketCap.

As a result of the issues arising from data provided by CoinMarketCap, Ripple has now shifted to CryptoCompare for information as the XRP benchmark as a way of addressing the problem of fake trading volumes. It appears this is a jab at CoinMarketCap, but more likely, Ripple is simply seeking transparency in providing market volume information.

>> Ethereum (ETH) Falls 86% Relative to Bitcoin Since the 2017 Build-Up

The Disparity in Data on Trading Volume

Statistics indicated that there is a huge disparity between CoinMarketCap and CryptoComapre that cannot be overlooked, especially regarding total XRP trading volume and total sales as a proportion of the trading volume. This further asserts that the data provided in Q1 2019 from CoinMarketCap might have been misleading by a huge margin, although that has not been confirmed officially.

XRP is being held in the escrow system and in the quarter, around 3 billion XRP was made available for sale, but 2.1 billion was reinvested in locked contracts. Most crypto tokens suffer from price devaluation, but it appears like XRP is immune to the fluctuation.

Featured image: DepositPhotos © adriantoday

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