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February 2013

Gartner Blockchain Study | 90% of Current Blockchains Obsolete By 2021

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Gartner Blockchain Study

Gartner Blockchain Study

According to a study executed by Gartner, 90% of the blockchains in use today will be obsolete or need complete replacing in only a couple of years. The Gartner blockchain study doesn’t sound too good, but it’s not all bad news.

The Gartner Blockchain Study

Gartner’s study says the following:

“By 2021, 90% of current enterprise blockchain platform implementations will require replacement within 18 months to remain competitive, secure and avoid obsolescence.”

However, although the technology will need constant updating, the value it adds to regular business will be almost $200 billion by 2025. More impressive is how this figure is expected to soar to $3.1 trillion by 2030.

Fail by 2021

Gartner predicts that 90% of current enterprise blockchain uses will fail by 2021 due to a fragmented market and “unrealistic expectations.” 

However, as stated, those that do persist will potentially add trillions in value.

Adrian Lee, senior research director at Gartner, said the following on the matter:

“Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology […] Many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals.”

>> GlobalCoin: Facebook in Discussions with CFTC but Uncertainties Continue

Gartner Blockchain Study: Fragmented Systems

Currently, according to Lee, the market is made up of fragmented systems, and blockchain providers are “overlapping their offerings.” This will get worse before it gets better. Gartner goes on to say that existing blockchains will need replacing to remain secure and updated.

Traditional business, especially in the financial sector, is increasingly expanding its use of blockchain technology. When used correctly, blockchains offer a plethora of advantages. It is first class in terms of security measures and speed when considering the transferring of money and other important data.

Have the results of the Gartner blockchain study surprised you? Did you think that 90% of current blockchains will be obsolete in a few years? What are your thoughts on this?

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Bitfinex Denies Money Laundering as Crypto Capital President Arrested

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Bitfinex

Bitfinex

Bitfinex has denied accusations of money laundering and claimed that it was a “victim of fraud” after the president of Crypto Capital was arrested in Greece yesterday.

Ivan Manuel Molina Lee was arrested in Greece and extradited to the Polish capital of Warsaw yesterday, where he has been charged with being part of an international drug cartel and money-laundering operation that allegedly siphoned funds between South America and Europe. Crypto Capital has been described as a “shadow bank” at the center of a fraud investigation into Bitfinex and its sister company Tether, both of which are controlled by parent company iFinex.

Missing Millions

The arrest comes just days after Bitfinex filed an application for discovery in an attempt to recover a “missing” $880 million USD held by Crypto Capital. The subpoena filing notes that Crypto Capital “provided services as a payment processor to [iFinex], transferring funds to and from [iFinex] and its customers,” since 2014. However, since December of last year, Crypto Capital has failed to remit the funds, claiming its bank accounts in PolandPortugal, the United Kingdom, and the United States had been seized or frozen by the various authorities.

In a statement today, Bitfinex has moved to distance itself from Crypto Capital, arguing that the exchange was a victim itself. Bitfinex says that any claims that Crypto Capital laundered funds on behalf of the exchange are “categorically false.” Further, in the statement, the exchange said that these developments will not deter it from recovering the missing $880 million USD.

>> Bakkt is All Set to Launch Options on Bitcoin Futures in December

More Controversy for Bitfinex

The arrest of Lee is an unusual turn of events in the ongoing controversy regarding Bitfinex and Tether. Both companies are accused of creating “the largest bubble in human history” in a lawsuit filed in New York last month, which claims the companies manipulated the crypto market out of $1.4 trillion USD. The suit’s allegations center around long-standing claims that Tether essentially printed billions of dollars worth of tokens to artificially inflate prices and convince investors that demand was far greater than in actuality.

It is difficult to judge just how aware Bitfinex was of the shady ongoings at Crypto Capital, or if the exchange will ever recover the missing millions, but it will be interesting to see how this develops over the coming weeks.

Featured Image: DepositPhotos © ezthaiphoto

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Bitfinex and Tether Lawsuit Revised After Plaintiffs Drop Action

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Bitfinex

Bitfinex

Controversial cryptocurrency exchange Bitfinex and its sister stablecoin issuer Tether have had a lawsuit against them withdrawn by two plaintiffs and re-filed with the addition of a new plaintiff.

The two companies were accused of creating “the largest bubble in human history” in a lawsuit filed in New York in October, which alleged that Bitfinex and Tether manipulated the crypto market out of up to US$1.4 trillion. A second, similar case was then brought against the two companies by Eric Young and Adam Kutz, who claimed that Bitfinex and Tether “monopolized and conspired to monopolize the Bitcoin market,” as well attempting to manipulate the market and making inaccurate claims.

Both cases were built upon longstanding claims that Tether essentially printed billions of dollars worth of tokens to artificially inflate prices and convince the market that there was a far greater demand for cryptocurrencies than was the reality.

A document filed on Tuesday, January 7, in the US District Court for the Western District of Washington shows that both Young and Kutz agreed to the voluntary dismissal of their case against iFinex, the parent company of Bitfinex and Tether. The suit was refiled the following day with the addition of David Crystal as plaintiff. It is not yet known why Young and Kutz decided to refile the case, and US law states that cases which have been voluntarily dismissed can never be brought to court again if it is dismissed a second time.

Both companies are steadfast in their denial of the accusations, describing the claims thrown at them as “meritless and mercenary.” Stuart Hoegner, general counsel to Bitfinex, said that the refiled case was also baseless and “will be disposed of in due course.”

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Tether had emphasized that its coin is backed 1:1 with the US dollar but flip-flopped on this stance in February when under investigation by the Department of Justice, changing its position to say its reserves “from time to time may include other assets.” Tether then made another walk back from this claim in April, when one of its lawyers admitted in court that the USDT was actually only 74% backed by cash or cash equivalents.

Featured Image: DepositPhotos © ezthaiphoto

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Facebook Crypto Ad Ban | Platform Loosens Restriction on Crypto Ads

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Facebook Crypto Ad Ban

Facebook Crypto Ad Ban

According to CNBC, Facebook said on Wednesday that it will loosen its ban on cryptocurrency advertising on its platform. The result will allow businesses related to crypto and blockchain to promote their projects on the social network. The Facebook crypto ad ban first came into effect in January 2018.

Facebook Crypto Ad Ban

The social media giant first started blocking ads on initial coin offerings, saying it had concerns for its users’ welfare. It was afraid that many would fall for scams and fraudulent crypto products.

But earlier this year its stance began to change. In January 2019, it began allowing ads from projects that had received prior written approval.

Was it coincidental that around the same time there were murmurs that Facebook itself was going to venture into the cryptocurrency space with its own coin?

Now, the social media giant has gone another step further, making it so that crypto-related ads will no longer require prior written approval.

In a blog post released yesterday the media giant said:

“We’ve listened to feedback and assessed the policy’s effectiveness […] While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.”

The company’s initial ban was met with ire from many businesses that felt the new policy was unfair. The restriction on advertising meant several projects lost hundreds of thousands of dollars because their ad campaigns were suddenly banned.

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It also is a convenient time for Facebook to change its opinion of cryptocurrency advertising as it is reportedly working on its own blockchain project.

According to several sources, the company is building its own stablecoin that will allow WhatsApp users to send cryptocurrency payments to one another. Further, last week it was reported that Facebook has been in talks with financial firms and e-commerce companies to support its project.

Are you happy to see the Facebook crypto ad ban reversed?

Featured Image: DepositPhotos © Kesu01

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