Investigating MMM Ponzi Scheme on Bitcoin Proceedings of ...

Stablecoins Are Not as Safe as You Think. How Your USDT, PAX, BUSD Get Frozen in a Moment

Stablecoins Are Not as Safe as You Think. How Your USDT, PAX, BUSD Get Frozen in a Moment
Being created on the basis of blockchain, stablecoins were considered to be a safe haven for investors… until recently. Why is their immunity elusive and how does the Financial Action Task Force (FATF) plan to control them?
Established in 1989 by the G7, the FATF inter-governmental organization develops policies to resist money laundering and financing of terrorism. It sets standards and implements legal and regulatory measures to combat illegal financial transactions.
They developed recommendations for the monitoring of money laundering and keep revising them regularly. In case of non-compliance, law enforcement is executed via regional financial organizations. As of 2019, there are 39 full members of FATF, including the USA, UK, Australia, most EU countries, Singapore, India and the Russian Federation.
Since 1st July, the FATF organization has been headed by Marcus Pleyer. During the last FATF meeting, the new president expressed his concerns about global stablecoins and organizations that issue them. Although the organization had already dealt with these cryptocurrencies, it highlighted that, “it is essential to continue closely monitoring the ML/TF risks of so-called stablecoins, including anonymous peer-to-peer transactions via unhosted wallets”.
Is it ever possible to control crypto wallets that are not hosted on online exchanges? – you’d ask. We’re used to the fact that cryptocurrencies are outside the reach of banks and governments. However, when it comes to stablecoins, things are different.

It’s in the code

What makes stablecoins special is that they are pegging to fiat currency, for example, 1 TUSD = $1 USD. This means that such assets should be backed up by real money stored in the bank accounts of the issuing organization. Consequently, stablecoin creators need to comply with the requirements of the SEC, FATF and other controlling agencies, if they are to operate in the cryptocurrency sphere and be authorised to sell stablecoins. Transparent reports are not the only requirement, stablecoins must also provide the possibility of account blocking.
Surprisingly, this feature is implemented in each stablecoin. The experts from QDAO DeFi are covering several stablecoin protocols that enable this function.

OMNI-based USDT

Issued by Tether Limited, USDT is a stablecoin that was originally created to be worth $1 with each token backed by a $1 real fiat reserve. The currency was successfully promoted and added to major cryptocurrency exchanges but stayed a controversial asset. Despite the claims of Tether Limited, they failed to provide any contractual right or other legal claims to guarantee that USDT can be swapped for dollars or be redeemed.
In April 2019, Tether’s lawyers explained that each USDT was backed by only $0.74 in cash or equivalent assets. No audit of dollar collateral was done. A month before that, it changed the backing to include loans to affiliate companies. The scandal also involved the Bitfinex exchange that was accused of using USDT funds to cover $850 million in funds lost since 2018. They were also accused of manipulating USDT to push the BTC price.
Tether is available on five blockchains: Omni, Ehereum, EOS, Tron and Liquid. Only the latter does not have a freezing feature. Omni was the first protocol for USDT. Blocking of users’ accounts is possible, thanks to the following piece of code:

https://preview.redd.it/uqho45l33om51.png?width=690&format=png&auto=webp&s=c0feebdae086b0deeccde05278eaf3cc760f9e2b
Apparently, it’s used to blacklist addresses and contracts.

PAX

The concerns about PAX were centered around the notorious MMM BSC Ponzi scheme. Before the widespread adoption of DeFi services, it was the second-largest gas consumer after Ethereum. Out of 25,000 daily transactions, 5,000 were performed by MMM BSC. It was reported to be a scam but none of the accounts were frozen. Does it mean PAX lacked the resources to regulate illicit activities?
Evidently, not. The protocol code has a LAW ENFORCEMENT FUNCTIONALITY function that allows for the freezing/unfreezing of contracts or burning assets on blacklisted accounts. It turns out, anyone risks having their PAX coins destroyed during an investigation process while their accounts stay blocked.

History of frozen accounts

In 2019, the ZCash Foundation and Eric Wall conducted research on the privacy of stablecoins and revealed several frozen addresses. It’s not clear why exactly they were blocked. Most probably, it happened shortly after the exchange withdrawal – users took this action after witnessing platforms being hacked.

https://preview.redd.it/pkbruqm83om51.png?width=838&format=png&auto=webp&s=b068c5b8c5e5439892eaf5feefa3fbc93c694c8c
USDT was implicated at least twice in scandals to do with freezing. In April 2019, about $850 million in Tether dollars sent by Crypto Capital Corp. were frozen by a New York court. Tether and Btfinex were accused of participating in a cover-up to hide about $850 million worth in clients’ funds. By July 2020, Tether had frozen 40 Ethereum addresses with millions of USDT (some of them are shown in the screenshot above).
The Centre Consortium was the next to follow their lead; about a month ago, it blacklisted an address with USDC worth $100,000. That was done in response to law enforcement.
Yet, it’s not only Europe and the USA imposing control over cryptocurrencies. Since June 2020, the Chinese government managed to block several thousands of users’ bank accounts. It was done to resist illicit activities, especially money laundering. On some of those accounts, no activity had been detected for several months. Meanwhile, prior to April 2020, Chinese residents moved over $50 billion worth of crypto outside the country borders – more than is officially allowed (a maximum of $50,000 per person).
The authorities claim that USDT and other stablecoins are often used in illegal activities. Together with the People’s Bank of China (PBOC), they are developing new ways of investigating digital crimes and money laundering operations involving exchanges and crypto wallets. Local financial bureaus and police are working tight-lipped about investigating startups and crypto exchanges. And they are succeeding at it.
In July 2020, Chinese authorities confiscated BTC, ETH and USDT worth $15 million from people who allegedly ran a fake cryptocurrency scheme.
By the way, not only corporate accounts are being closed. One investor claims his account had been frozen after using yuan to purchase crypto. Also, users who transfer illegally obtained money outside of the mainland in large amounts are under suspicion. Does it mean the Chinese government has started tightening the screws on cryptocurrency users?

DAI, USDT on Liquid and USDQ are the main options for stablecoin deposits

So, where can you store your crypto assets? USDT on Liquid and DAI are not the only solutions available. Consider making a deposit in USDQ, the stablecoin of the QDAO ecosystem. Like other stablecoins, it’s 1-to-1 pegged to USD. However, it cannot be frozen by a government, financial organization or anyone from the QDAO team. You can check it yourself by reading our Smart contract and USDQ Audit.
In QDAO, users’ accounts are never frozen by a single person – all account issues are solved by the entire QDAO community, with the help of a QDAO governance token.
In case of blocking (the chances of which are almost non-existent), you can address the QDAO community and get timely help.

Bottom Line

With FATF taking this new course of action, we might witness serious pressure on stablecoin providers. Some projects will resist it, but it’s still not safe to store your assets in popular stablecoins, especially USDT. Your account can be frozen by authorities for dozens of reasons without the possibility of retrieval.
Yet, there are a number of reliable alternatives and USDQ stablecoin is one of them. QDAO DeFi platform users feel free to manage their crypto reserves and make profitable deposits.
Want to be the first to hear QDAO DeFi news and updates? Visit our website and stay in touch with us on social media: Twitter, Facebook, Telegram and LINE (for the Japanese-speaking community).
submitted by QDAODeFi to u/QDAODeFi [link] [comments]

What do regulators say about BitQT ?

What do regulators say about BitQT ?

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Live trading with BitQT

https://preview.redd.it/zrxveikvhim51.png?width=975&format=png&auto=webp&s=524850e4ff5890df2a7c25e4213090444bf46255
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What we have a tendency to suppose concerning BitQ
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BitQT BQ could be a laptop program that trades bitcoin CFDs automatically. The program claims to rely on advanced AI technologies to conduct trading research execution with a supposed win rate of up to 99p.c. BitQT BQ appears widespread with passive on-line investors, providing it is easy to use for all and doesn’t require a lot of your time to operate
It's conjointly said to require solely a tiny minimum capital deposit ($250) and reportedly generates up to $1k in daily profits from such a little account. However is BitQT BQ legit and if so, does it earn its users the said profits
As usual, we tend to have conducted a thorough investigation to determine if this bot is legit. We have a tendency to will gift our findings in this review and offer tips to assist you get started with it
https://preview.redd.it/4my2soawhim51.png?width=1046&format=png&auto=webp&s=515978aeca1497910fb83c4168326888697ef07a
BitQT BQ App reviewWhat is BitQT App?How will BitQT App work?Getting started with BitQT BQ
STEP ONE: Register a free accountSTEP 2: Verify ID with the underlying brokerSTEP 3: Deposit at least 250 USD as trading capitalSTEP FOUR: Trade with a demo accountSTEP FIVE: Live tradingIs BitQT BQ legit? The verdict!FAQsWhat is BitQT BQ App?Is BitQT App a Ponzi scheme?How much ought to I invest with BitQT BQ?How do I withdraw the supposed profits from BitQT BQ app?

Our criteria for determining the legitimacy of BitQT BQ took under consideration multiple factors, together with transparency, reputation, safety, simple use, and client service. The findings are summarized below.

BitQT BQ creates a transparent trading ecosystem through the coveted blockchain technology. This technology makes it possible for users to watch their accounts in real-time and raises disputes through smart contracts.
The robot has an glorious reputation with a rating of on ForexPeaceArmy when nearly 6k reviews.
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What is BitQT App?
cribes itself as a highly specialised and powerful pc algorithm that automatically conducts the trading functions of an skilled BTC CFDs trader.
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submitted by Anteater_Same to u/Anteater_Same [link] [comments]

Summary of Tau-Chain Monthly Video Update - July 2020

Karim
Agoras Live: Five functionalities complete: 1. Registration 2. Login 3. User Profile Page 4. Calendar 5. Categories List 6. Wallet Screen Payments: Decided that implementing lightning would be too complex. Instead, we decided to implement our own micropayment mechanism using the native BTC multisig addresses. We are going to use the Omni wallet for payments. TML: Continued debugging, getting a TML demo and test cases ready. Hiring: More hiring efforts to increase team size. Timelines: Committing ourselves to a release of Agoras Live and a basic version of discussions in TML in 2020.
Umar: Been working on making improvements to the context free grammar parsing. We now are able to add constraints to productions in the grammar, allowing us to recognize grammars that are context sensitive. Developed test cases for that, too.
Tomas: Fixed issues in TML and ran several steps in a TML program. Now adding more tests to make sure everything is stable and won’t break. Also been working on a TML tutorial, a recorded script based on the intro to TML which was contained in the TML Playground. Also new features are going to be covered such as arithmetics.
Kilian: More outreach & follow-ups to potential partner universities. Positive response by a professor based in Toronto, presented to him our project. Also, response by KULeuven, Belgium, who unfortunately don’t see a good fit in our project. We’ve had one applicant for the IDNI Grant program and currently are evaluating his proposal. Also, we’ve had an applicant from Bangalore, India for the IDNI Ambassador program and we also have been discussing his proposal. Translation Bounties: We’ve had the blog post “The New Tau” translated to Chinese and have been reviewing the translation. We are going to publish the translation on our website and on the Bitcointalk Chinese forum section. Still to be claimed: German translation of “The New Tau”. Done more effort on reach out to potential tribe channels: Research groups, LinkedIn groups, Facebook groups. Most represented keywords: Complex Adaptive Systems, NLP, Computational Linguistics. Usual feedback: Likes but no further interaction. Created an FAQ answering all possible questions surrounding IDNI, Tau & Agoras Idea: Hosting a virtual panel to spread the word about our project among the scientific community, as well as to create some visual content for our community. Two professors are interested in participating, one from Argentina with a focus in semantic parsing, the other one from the University of Washington with a focus on human-computer interaction and social computing. First step: organizing a pre-panel discussion where in 1on1 calls with the professors we get an opinion of them about what we are doing.
Andrei: Agoras Live: Implemented mail system so users now get their mails (e.g. registration email). Improved UX together with Mo’az, e.g. user profiles. Token creation for accessing calls to identify and charge users. Customized Jitsi interface to suit our needs: E.g. display of how much time passed in a call and how much it costs. Next up: Further improve UX; make sure everything works as intended.
Mo’az: Almost finished the IDNI website. Added two more pages: Events & Bounties in collaboration with Fola & Kilian. Agoras Live: Finetuned all the website’s components in collaboration with Andrei.
Juan: Continued working on the payments system for Agoras Live. Had some delays due to the complexity of debugging such applications. Still, we made significant progress and got the funding transactions implemented over the Lightning network through the Omni layer. Spent time analyzing the minimum amount of BTC to pay for the fees associated to the Omni transactions. We aren’t using segregated witness native addresses and instead are using embedded segregated witness. So transaction sizes are enlarged and transaction fees are a bit higher. So there is a bit of finetuning analysis needed in order to enable the multisig address to pay for the closing & refund transactions. So to provide payment channels over the Omni layer, the main remaining technical detail we have to solve at this point is the closing transaction & the refund transaction.
Fola: Have been continuing to look for great talent in different areas. Continued working on website with Mo’az and Kilian. Been working on the branding for Tau & Agoras. Been getting external support to make sure the branding for Tau & Agoras will be as professional as it can be. Working on marketing efforts needed for the release of Agoras Live to get the media pack for marketing ready. Working together with external people to put a plan together for listing the Agoras token on more prominent exchanges as we get closer to release of Agoras Live.
Ohad: Continued working on restricted versions of second-order logic to understand how to implement them. There is a translation in the literature about how to convert second-order logic by Horn into Datalog. Also, I have been revisiting papers that deal with descriptive complexity of higher-order logic. They mention that they have a translation from second-order logic to QBF. I wasn’t able to find where they explain this translation but I wrote one of them and he said he will send me the paper. If so, that will be very good because we already have a QBF solver. Any binary decision diagram is already a QBF solver, so we can just translate arbitrary second-order logic formulas into QBF. This will be very helpful for us to implement second-order logic. Also, those papers mention several aspects that are relevant for self-interpretation, the laws of laws. Apparently, they suggest that certain fragments of higher-order logic may also support the laws of laws. But this is part of the papers that I didn’t have access to, so I have to wait to get further clarification. I also pushed the whitepaper significantly this month and hope we will be finishing it soon. Also, I was thinking about some optimizations for the parser and also was looking into the Lightning network. It was my mistake that I haven’t done so beforehand and if I had done it beforehand, I would have understood earlier, that Lightning is too much. It is too drastic of a change to how traditional payments work and there apparently is no reason to believe that it is secure. So I’m glad I discovered better now than later that it’s not something we’d like to rely on, although we can have it as an optional feature.
Q&A:
Q: With the project development taking longer than other projects such as Tezos, when can AGRS holders expect something to be released and, how can you reassure us that we made the right decision?
A: With regards to when we see some releases, it seems that we will see some releases in 2020. For comparing to Ethereum and Tezos: Let’s first talk about funding. Both projects had a lot of money. For Ethereum, the reason for is that it has probably done one of the most aggressive marketing campaigns in history. It was completely lacking any kind of honesty. It was simply aggressive. None of Ethereum’s visions and promises became true. It simply became an insecure platform for scams. None of their vision of creating a world computer, of creating a better society, a better currency, became true. Because of this aggressive marketing, they not only raised a lot of money, they also took the price to be so high in the market. If you remember the campaign of the flipping, they did a whole campaign on how they would overtake the marketcap of Bitcoin. For Tezos, they made maybe the largest ICO in history in terms of money, mainly because they came at the right time, at the top of the bubble in 2017, and also their promises for better coordination didn’t come true. Their solution is based on voting and based on Turing completeness and the only reason why they managed to gain such a market cap as of today, is not because they offer better currency, better society, better anything. It basically is a Ponzi-scheme because they offer very high interest rate by very high inflation (5,51%). The only reason why people buy Tezos is to get into this Ponzi-scheme. Because both Tezos and Ethereum lack any true economical or technological substance, their value will not sustain and this is true for almost all projects in the cryptocurrency world. In the software, high-tech market, if you come up with good tech and you do all the right things, you succeed big time. But if you don’t have it and you are purely relying on brainwashing people, it will not sustain. Of course, our solution is so disruptive and sustainable. We offer to do advancements for humanity and for economy.
Q: What three subjects would you first like to see discussed on Tau?
A: Of course, picking three subjects now is a bit speculative, but the first thing that comes to mind is the definitions of what good and bad means and what better and worse means. The second subject is the governance model over Tau. The third one is the specification of Tau itself and how to make it grow and evolve even more to suit wider audiences. The whole point of Tau is people collaborating in order to define Tau itself and to improve it over time, so it will improve up to infinity. This is the main thing, especially initially, that the Tau developers (or rather users) advance the platform more and more.
Q: What is stopping programmers using TML right now? If nothing, what is your opinion on why they aren’t?
A: There is nothing essentially missing in TML in order to let it release. And in fact, we are now working towards packaging it and bringing it towards a release level. For things like documentation, bug fixes, minor features, minor optimizations. We indeed actively work towards releasing TML 1.0 and then we can publish it in e.g. developers channels for them to use it.
submitted by m4nki to tauchain [link] [comments]

A solution for peak social media - The Omeganet distributed database protocol

I have found a solution that solves social media. The idea is to use a shareable database with atomic additions secured by proof of work. It is similar to bitcoin but is not a ponzi scheme. There are no coins. There is no way to invest. I cannot ask for money. There is no singular version of the database that all participants must agree on. Whatever part of the database you've personally collected is what you will use to rank topics.
The database tracks ever shifting ownership of participants who have made additions to the database. Each addition requires some amount of computation time. There are many networks, each with a different security requirement and thus different amount of computation time required to make additions to it. Higher security networks will have less data traffic. Lower security networks will have more traffic. You will connect to the network that has the 'just right' amount of traffic, enough to not tax your computer and network resources.
When voting on a topic a user will place a weight (like 10) on a target. When voting again, another weight (-5) is placed, and another (15). The user's accumulated voting power is then distributed among the all their placed weights. A user can place as many weights as they wants but their voting power is cut down by total amount of weight they've placed. To vote on everything is to vote on nothing.
Acquiring voting power is done by expending resources and making additions to the database. As time progresses, voting power is lost by exponential decay. In other words, if old users do not continuously expend computing resources to maintain their voting power, it is lost. Voting power is thus distributed proportionally to users based on their expense into continuously updating the database.
If you want to read more, here's a document that fills in most every question you could possibly have. It takes about 2-4 hours to read. https://docs.google.com/document/d/1DJsIFCIFpRrWrl1GvbhkYlzU7JRJqwinUIsPQSJjtQI/edit
submitted by Ghudda to realsolutions [link] [comments]

51% attacks are morally justifiable

In this short post I want to set out my case for the moral justifiability of 51% attacks against proof of work cryptocurrencies. In the past, a 51% attack was a theoretical construct that most people didn´t seem to think would be practically achievable or lucrative. This has now changed, as hashpower can be rented on sites like Nicehash and Mining Rig Rentals for a few hours at a time. The attack delivers the attacker two prominent opportunities:
-You can orphan blocks of ¨legitimate¨ miners. This essentially means that whatever work was produced by legitimate miners during your attack became worthless. Mine a secret chain of two hours worth of blocks, release it and you orphaned 2 hours worth of blocks by your competitors. By the time most of the miners have noticed their blocks were orphaned in an attack, their nodes will have been automatically mining on your own chain for a while and it will be too late for them to do anything about it. The amount of money they lost would be equivalent to the amount you had to spend to produce your chain. Because mining is an industry with tight margins, the economic impact on these miners can be very big. The cost may be sufficient in case of a very long attack, to persuade them to quit their endeavor and get a real job.
-The more important opportunity is that you´re able to double spend your coins. This is potentially, incredibly lucrative. How lucrative it is tends to depend primarily on the inflation rate of a cryptocurrency. A low inflation rate means relatively little ¨work¨ is done to maintain the security of the system. A high inflation rate on the other hand, turns the cryptocurrency into a very poor long-term investment. As a consequence, most cryptocurrencies face declining inflation rates, that delay the problem of their ultimately unsustainability into the future. The bank of international settlements explains this issue here.
When it comes to the moral justification of a 51% attack, we first have to ask ourselves why proof of work is morally unjustifiable. There are two main reasons for this:
-Proof of work has an enormous environmental impact, that ensures future generations will have to deal with the dramatic consequences of climate change. There is no proper justification for this environmental impact, as it delivers no clear benefits over existing payment systems other than the ability to carry out morally unjustifiable actions like blackmail.
-Proof of work is fundamentally unsustainable, because of the economic burden it places on participants in cryptocurrency schemes. Cryptocurrencies can´t produce wealth out of thin air. The people who get rich from a cryptocurrency becomes rich, due to the fact that other people step in later. In this sense we´re dealing with a pyramid scheme, but the difference from regular pyramid schemes lies in the fact that huge sums of wealth are not merely redistributed, but destroyed, to sustain the scheme. The cost of the work to sustain the scheme is bigger than you might expect, because the reality is that relatively little money has entered bitcoin. JP Morgan claims that for the crypto assets at large, a fiat amplifier of 117.5 is present, as a purported $2 billion in net inflow pushed Bitcoin’s market capitalization from $15 billion to $250 billion. You have to consider that the Digiconomist estimates that $2.6 billion dollar leaves the Bitcoin scheme on an annual basis, in the form of mining costs to sustain Bitcoin. The vast majority of retail customers who entered this scheme ended up losing money from it. In some cases this lead to suicides.
The fact that proof of work is morally unjustifiable doesn´t directly lead to a moral justification for a 51% attack. After all a sane society would use government intervention to eliminate the decentralized ponzi schemes that are cryptocurrencies. There are a few things that need to be considered however:
-Governments have so far failed in their responsibility to address the cryptocurrency schemes. Instead you tend to see officials insist that proof of work might suck and most cryptocurrency is a scam, but ¨blockchain technology¨ will somehow change the world for the better. Most libertarians who saw these schemes emerge insisted that it´s stupid to participate in them because the government would eventually ban them and round up the people who participated in them. This didn´t happen because of the logistical difficulty of suppressing these schemes (anyone with an internet connection can set one up) as well as the fact that suppressing them would lend credence to the anti-government anarcho-capitalist ideology on which these schemes are based. Goverments might say ¨these schemes facilitate crime, ruin the environment and redistribute wealth from naive individuals to scammers¨, but anarcho-capitalists would insist that governments have grown so tyrannical that they want to ban you from exchanging numbers on computers.
-Because cryptocurrency is fundamentally an online social arrangement, governments have very limited influence over the phenomenon. Binance seeks to become a stateless organization, not subject to the jurisdiction of any particular government. Just as with regular money laundering and tax evasion that hides in small nations that can earn huge sums of money by facilitating these practises, governments are dependent on the actions of individuals to address these practices. Whistleblowers released the panama papers and the tax evasion by German individuals through Swiss bank accounts. Through such individuals, the phenomenon could be properly addressed. In a similar manner, cryptocurrency schemes will need to be addressed through the actions of individuals who recognize the damage these schemes cause to the fabric of society.
-The very nature of a 51% attack means that it primarily punishes those who set up and facilitate the cryptocurrency scheme in the first place. The miners who pollute our environment to satiate their own greed are bankrupted by the fact that their blocks are orphaned. The exchange operators are bankrupted due to double-spend attacks against the scams that they facilitate. When this happens, the cryptocurrency in question should lose value, which then destroys the incentive to devote huge sums of electricity to it.
Finally, there´s the question of whether 51% attacks are viable as a response to cryptocurrency. There´s the obvious problem you run into, that the biggest and oldest scams are the most difficult to shut down. In addition, cryptocurrencies that fell victim to an attack tend to move towards a checkpoint system. However, there are a few things that need to be considered here:
-51% attacks against small cryptocurrencies might not have a huge impact, but their benefit is nonetheless apparent. Most of the new scams don´t require participants to mine, instead the new schemes generally depend on ¨staking¨. If people had not engage in 51% attacks, the environmental impact would have been even bigger now.
-51% attacks against currencies that implement checkpointing are not impossible, if the checkpoints are decentrally produced. What happens in that case is a chain split, as long as the hostile chain is released at the right time. This would mean that different exchanges may get stuck on different forks, which would still allow people to double spend their cryptocurrency.
-There are other attacks that can be used against proof of work cryptocurrencies. The most important one is the block withholding attack. It´s possible for people who dislike a cryptocurrency to join a pool and to start mining. However, whenever the miner finds a valid solution that would produce a block, he fails to share the solution with the pool. This costs money for the pool operator, but it can be lucrative for the actor if he also operates a competing pool himself. In the best case it leads to miners moving to his pool, which then potentially allows him to execute a 51% attack against the cryptocurrency.
-It´s possible to put up a 51% attack bounty, allowing others to do the work for you. This works as following. You make transaction A : 100 bitcoin to exchange X, for a fee of 0.001 BTC. Once this transaction has been included in a block, you immediately broadcast a conflicting transaction with another node: You´ŕe sending those 100 bitcoin to your own wallet, but you´re also including a 50 bitcoin fee for the miners. The miners now have a strong incentive to disregard the valid chain and to start mining a new chain on an older block that can still include your conflicting transaction. Provided that pool operators are rational economic agents, they should grab the opportunity.
-Selfish mining in combination with a Sybil attack allows someone to eclipse the rest of the network, while controlling less than 51% of the hashrate. Your malicious nodes will simply refuse to propagante blocks of your competitors, thereby giving you more time to release your own block. Selfish mining will always be possible with 33% of the hashrate and as far as I can tell there are no pathways known currently to make the scheme impossible for people with 25% of the hashrate. This potentially makes a 51% attacks lucrative without having to carry out double-spend attacks against exchanges. Although double spending is a form of theft, it´s not clear to me whether a selfish mining attack would get you into legal trouble or not.

Conclusion:

The dreaded 51% attack is a morally justifiable and potentially lucrative solution to the Nakamoto scheme.
submitted by milkversussoy to Buttcoin [link] [comments]

r/Bitcoin recap - August 2019

Hi Bitcoiners!
I’m back with the 32nd monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you an overview of what happened in bitcoin over the past month.
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in August 2019
Adoption
Development * Bitcoin Core Developer Andrew Chow is straming his code tests on Twitch (7 Aug)
Security
Mining
Business
Education
Regulation & Politics
Archeology (Financial Incumbents)
Price & Trading
Fun & Other
submitted by SamWouters to Bitcoin [link] [comments]

Adoption: A big reason its not happening

As someone who has been extremely involved in the cryptocurrency space the past 2 years, and 6 as an investor I want to point some things out.
  1. The whole space is full of egomaniacs
When I first got involved as an investor in 2013 buying 2.5 BTC I thought very little of where it could go. It was a small tight group of believers back then. As the space evolved you found there were more and more Craig Wright's. What I mean by that is there were tons of people with massive egos who did not care what others said. It was okay before 2016-2017 as I wasn't so closely following what was going on.
Once I got involved in the space more quit my job and went deep into the space I noticed something. I saw a tom of egomaniacs pretending they really knew what they were talking about, I saw people acting like they knew everything about everything and I saw CEOs who had little to not hope other then big talk and hopium.
In my opinion we need more humble leaders in the space, people who truly care about it more than making as much money from people as they can. People who aren't showing off watches during a hash war that ended with zero winners, and led us into the longest crypto winter in the spaces history.
The egos need to go in the space and all that big timer, know it all, bickering needs to take the back seat. Guys like Roger Ver, Jimmy Song, and Craig Wright need to stay focused and deliver. How can they do they always competing and putting each other down? It all seems very childish and like the space it is very immature.
  1. Scams, Faulty Exchanges, Faulty Volume
The sickening amount of scams I have seen and that still somehow go on have put a serious dent on the goal for adoption. When one thinks deep enough about this they realize that for us to move forward cryptocurrencies can't be seen as a rabbit hole or a giant scam/Ponzi scheme.
There are already options out there like www.trustedintrading.com that make everyone do KYC to be on the platform. They provide insights into projects, they do serious Due Diligence on all projects including (KYC on all members of the team/advisory, Company and business registration checks, location checks etc they verify the company is real. The only issue is many do not even want to do their KYC and that in itself is a bit silly.
Scams are easy to pull off if you have ever been to a network marketing / MLM event you will see how they do them in crypto. My issue is the people are still being scammed into this. Just recently evencoin was saying they partnered with some of Thailands top hospitals, then the hospitals denied it, but for many it was too late. So this is a huge burden that seems to have a solution ready made that people will soon use. I just think this has really caused adoption to feel like it won't happen as there have been countless exits.
We just saw Quadriga, we have seen Bitgrail, we have seen My.Gox and the list goes on. Why does this keep happening and will dex's be the answer in the short term the answer to that is not really, long term potentially. My huge issue is there are so many scam exchanges that currently exist in the space, using bots and market makers to create approximately 87% of the volume in crypto to be fake. We have seen centralized exchange after centralized exchange be hacked, lose funds most recently Quadriga is a prime example everyone feels it was an exit scam.
My point here is who wants to put money on a crypto exchange? Most do not have insurance and most are giant scams with less than 100k of daily volume. Many don't feel secure and think if I can lose everything I better stick to fiat then take this risk. The volume issue is bad enough for a report that was recently completed by bitwise to show, really only 10 real crypto exchanges exist, a scary thought for someone thinking to adopt especially the institutions and several traditional investment firms/banks, VCs and Hedge funds.
  1. JP Morgan and Other haters
We have seen over time big institutions call Bitcoin a scam over and over. We have need Nouriel Roubini bashing on it and several other institutional investors and also the likes of Warren Buffet. Some of them believe that crypto truly is a scam, and that it has very little value for example.
We see guys like Jamie Dimon says things like crypto is a scam, I regret saying that to going on saying that hey guys look at JPM coin within the last 3 years. That alone should tell you something, along with the likes that when Jamie said it was a scam the price dropped almost 25%. What's even more ridiculous is the fact that JP Morgans Asian branch bought 100m worth of BTC after that happens what a nice 25% discount right?
This hurts and helps adoption actually, in one way many think it still is a scam in another people will think hmm if they have bought maybe it isn't so bad. Also Marc Faber just bought some BTC so this side of things may be improving, but still several people like Roubini and Buffet maintain their stance. We all also know of Jack Dorsey Twitter's CEO buying tons of BTC weekly so sediment might be changing.
I recently spoke at the DS Summit in Bangkok, and I saw something eye opening. Several people at their first conference ever as we were focused on STOs at this conference. I spoke at this conference and after when I was outside chatting I met several investment banks, credit Swiss VP of Asia and even banks looking to learn about the space. This was about 3 weeks ago and what it showed me was there is a shift among us where digitized assets are being taken seriously.
For this one it's not all bad, but still tons of growth and education is needed for these players to even entertain the market place, or understand why they should even do it in the first place.
  1. People in the space including influencers
This is the big one I'd like to address as I believe this is the biggest issue in the whole blockchain and crypto space. The constant social media keyboard warriors, they know everything, nobody knows better than they do, they won't listen to anyone and when you present good hard facts you are either a fudster or a scammer.
The whole space needs to mature I have seen project argue with users via telegram, I have seen projects argue with people face to face in an environment that was totally unacceptable. I have seen influencers screaming on live feeds at conferences at projects they don't like. Constantly I have seen one after another event happen which totally makes everyone in the space look bad. There is a reason so many call scams in this space and it's mostly to do with the fact that we as investors, influencers, educators etc need to stop attacking everyone.
When I say this I mean it in the way that I see people make a typo and get crap for it, I see people with good points attacked because someone disagrees I see so much crap everyday like this. I have at several times told people how bad this is for outsiders looking in. We all have a responsibility to evolve and mature the space, but right now it feels like a middle school with kids arguing for the sake of it to be right or be cool.
I am so sick of the daily attacks on influencers trying to help for free, this makes it even worse because if you can't even learn without being attacked why would you want to be involved in crypto. I know there are fakers but we all can weed them out together. Why don't we all work together more or at least practice what our moms taught us that if you don't have anything nice to say, say nothing at all? Imagine if people treated each other not with big egos and were truly friendly and wanted adoption to happen how different the landscape would be!
To end I would love to see some real adoption of cryptocurrencies worldwide. I know if we started to really help that and focus less money and more on usecase and creating tools to make it easier to get started that would be truly what would be beautiful. I have a friend who says let's get the children out of the way and let the adults do the work. I don't agree if we talk about age but I do agree with her, because she's talking about just mature adults not adults acting like children. Let's start truly helping each other, teams, and supporting real exchanges and real projects with use cases for adoption. Let's see the bad projects die off and lets get the space ready for true adoption. It's time to stop arguing and start building the foundation this space truly needs. Without that nobody I have met from the traditional finance world is truly going to consider this other then for monetary reasons.
If you want to connect with me or have any questions please comment below.
Joel - Coach K
submitted by Crypto_edu to CryptoCurrency [link] [comments]

What coin is your "sleeper" coin that has a promising future?

Thank you all for sharing! A summary of results and findings to be posted here within 24 hours!
Update 9/2/17 (Not organized):
Mentions:
2 Tierion, 7 Vertcoin, 2 Pied Piper, 9 ARK, Binance Coin, 2 LoMoCoin, OMG, 17 District0x, 7 Monero, 8 IOTA, DeepOnion, 5 Agrello, 10 Factom, 1 Metal, *3 Nexus, NoLimitCoin (NLC2), Ember, 4 signatum, 4 Funfair, 3 Rise, groestlcoin (grs), bitquark, 2 bitquence (BQX), bitsend, 5 nav, datum, 2 0x exchange (zrx), 3 BAT, 2 Peercoin, 1 bytom, sys coin, 2 sia, 1 stox, 2 tenx, 2 decred, 3 ripple XRP, oxycoin, 4 OMG, 2 IOC, 3 ASCH, Oxycoin, 2 Lisk, 3 *Zcoin, 2 BLOCKNET, komodo, 2 pivx, game, mgo, linx, viacoin, xspec, qrl, voise, *bitbean, bitbay, 3 ubiq, 3 iconomi, 2 taas, bet, shift, crown, *singulardtv (sngls), myst, maidsafe, synereo, particl, 2 *cat, nem, lykke, *adex (adx), 2 verge (xvg), *raiblocks (XRB), suncontract (SNC), *diamond (DMD), mooncoin, *cloak, walton (WTC), counterparty (XCP), sickcoin, MEMETIC, wild beast block (WBB), civic, ponzi, biblepay, gene-chain, aragon, gulden, byteball, patientory, 2 stellar lumens (XLM), qtum, EOS, WBC, 23 skidoo, stealthcoin, digibyte, coss ico, dobbscoin, opus (OPT)
Tierion: FCT competitor Vertcoin: lightning network & Atomic swaps, longterm mining drama solution via asic resistance useful 3-5 years from now, ltc fork. "If I understood LN + atomic swaps correctly, I can see BTC users atomic swapping to the ridiculously cheap VTC chain to transfer their coins to the intended party, then that party swaps back to BTC later. I mean, this is what I would do if the fees made sense. While this might take away some utility from LTC, few people know about VTC, and the total of both coins (2 x 84 million) will never be enough for the world if you take future growth and adoption into consideration." - corpski Pied Piper: those guys fuck ark: easy way to build blockchain apps, no good marketing yet, so will be big after that Binance Coin: Binanc exchange's coin LomoCoin: Chinese pokemon go geocaching app with new v2.0 coming out OMG: Best way to spend your crypto, will be around despite success of any crypto *Agrello: Legal stuff Factom: Adopted and funded by bill gates, DHS, used in the real world, few other competitors with this much current use. probably slow but steady growth though with better utilization of blockchains. Metal: consistenly doubled ~every month, new signatum: "About to get PoS, a roadmap that is being quickly ticked through and constant development. Dedicated and fair. It's a literal steal right now and once people realise staking will just make money for them, the more holders and the less sellers, unlike now with many miners selling. It's reliable and honest, a fresh reality in the ICO scam filled marketplace. " -skeetskeet172 Nexus: "former spacex founders launching cube-sats around the world to decentralize the dectranlization" -Raynre + soon to boom after conference ~mid september Rise: lisk copy warnings district: "once the masses adopt and wrap their heads around the idea of ethereum and other app based platforms, they'll need a way to implement into real world applications. E-commerce, social platforms, blogs that pay directly for views, etc. DNT is paving a way for everyone (without programming knowledge) to take part in the decentralization world. In my opinion this is huge for the long run." - sdot123 *Bitquence: bring investments to the masses Nav: Polymorph and staking, risky but ambitious 61,000,000 limited supply, ~flavor of month in december. zrx: can't find a good reason why this decentralized exchange will succeed and purpose of the token? BAT: founder of javascript despite the sour ICO Peercoin: long long history of failures and innovation but not giving up bytom syscoin: merge mining with bitcoin tenx: omg partnership, few credit cards, backed by vitalik decred: open structure, governance, only vote for a hard fork ripple: $5+ trillion transferred using SWIFT, $50 mil FEDWIRE, 1.5 bil on CHIPS ASCH: any coding language side chain creation, very active big team, pending big exchange approval bitbean: due for name change soon, staking, funny/moniker name (bean) zcoin: better than zcash/monero once roadmap is done: better POW, incentivizd nodes, trustless setup, permanent anonymous addresses, faster times, currently only $35mil market cap, used bitcoin code, asic resistant bitbay: valued <5x sys coin competitor, novel rolling peg, pos, dedicated underdog dev who was screwed over by his own team shift: decentralize the web crown: digital commodities, and more, neither POS or POW but ATOMIC in 1 month CAT: Creating ethereum smart contracts visually raiblocks: is like IOTA, close to coming to bittrex, 0 transaction fees suncontract: buyign and selling electricity. Will eb used for solar market.. Really good cause! mooncoin: in one year cloak: closed source, said to be better than monero/dash when goes open source *walton: NEW, chinese site but patents and samsung vp on board, patents for integration of iot and rfid and blockchain, only one binance right now and will balloon afterwards, https://twitter.com/Waltonchain counterparty: extends bitcoin to create assets *MEME: blockchain secured images. but how do they afford image hosting costs? wild beast block PonziCoin: definitely not a ponzi scheme of sorts... biblepay: religion ftw gene chain: sleepiest sleeper of sleepers. a very very specific sue case in bioinformatics, made first node sale to a genomics lab and about to publish a paper soon. gulden: send money but every new user causes gulden value to go up. can buy with cash on website right now. ubiq: said to be throttled by bittrex/killed. *OPUS: NEW
submitted by mannanj to CryptoCurrency [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to CryptoICO [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to ico [link] [comments]

'Bitcoin only is a store of value' is a false narrative. Broadly speaking, crypto as a whole is a store of value.

Pertaining to the investment side of the cryptocurrency space, I believe the biggest mistake that has been made is letting the Bitcoin community monopolize the narrative that they, and only they, can be considered a 'store of value'. Having been convinced that crypto diversity is bad, the unthinking portions of the market have exonerated Bitcoin from having to prove any functional superiority while simultaneously applying scrutiny to other projects that Bitcoin itself would not live up to.
Anyone who understands anything about public blockchain technology that was started by Satoshi Nakamoto understands that it's made possibly by the combining of a blockchain data structure with a consensus algorithm that uses a token of economic value (simultaneously stored in the data structure) to incentivize network security, without which the network could not survive. This is true of all legitimately decentralized public cryptocurrencies.
Ethereum is essentially a superset of Bitcoin. Again, anyone who understands how the technology works must understand that at its basic level, Ethereum is a decentralized public cryptocurrency like Bitcoin and as such has 'store of value' characteristics every bit as much as Bitcoin. In Ethereum's case, ETH is valuable not only because it's a store of value bounded by network effect, just like Bitcoin, but in addition because ETH has the added utility of being able to purchase computation on the future world's computing surface. Imagine if your car could run literally by burning $20... just put a $20 bill in your gas tank and it's full. Would that make the dollar more valuable or less? More obviously.
I'm constantly seeing this argument in social media that all the 'shitcoins' are going to zero. But this is an unfounded and irrational talking point. Sure there will be some cryptocurrencies that rightfully drop substantially like Bitconnect (a full-on ponzi scheme), and yet even Bitconnect trades non zero still today. There is actually no mechanism that I can see for a cryptocurrency to 'go to zero' apart from being delisted from every exchange in the world at the same time.
The cryptocurrency space acts by analogy like a comet, with Bitcoin being the center gravity, and the remaining cryptocurrencies forming a long tail behind it. As the market moves toward the bottom of its cycle the tail rarefacts, lengthens and spreads thin with 'altcoins' going down in value faster than Bitcoin and of course it's during this time that all the bears and trolls come out to spread the message that everything is going to zero. But as the market moves toward the top of its cycle, as money pours into the center of gravity, value flows back into the now compressing tail, tightening it back up, 'altcoins' rising faster than Bitcoin. Assets that were decreed to 'go to zero' now suddenly are shooting stars comparatively (though with initial relatively low liquidity).
Why is this? Why don't all the little cryptocurrencies on the long tail just die off as all the trolls in the media are suggesting they should? Aside from there being little mechanism for a cryptocurrency to go to zero (as mentioned above) it's because generally the tech of all public cryptocurrencies gives them 'store of value' characteristics and therefore they act together as a collective store of value over the long term.
There are now thousands of cryptocurrencies trading, many from past crypto epochs. And there will be thousands more to come. Apart from basic diversification, I believe the fact that the crypto space as a whole acts as a store of value is another major reason why crypto index funds/ETFs are going to be popular over time. Big money is not going to fall for the false narrative that Bitcoin is the only legitimate cryptocurrency... they are too smart for that and will seek ways of harnessing the value of the long tail of crypto.
TL;DR
It's time we rebut this "Bitcoin is the only store of value" false narrative. The truth based on how blockchain technology works intersected with how markets work is that the whole cryptocurrency space essentially acts as a store of value with cyclical tail compression and rarefaction.
submitted by silkblueberry to ethtrader [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to Crypto_ICO_Investing [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The Greatest Fails: 10 Dead Coins You Didn't Know About

https://preview.redd.it/emng7fiq8ym31.jpg?width=1920&format=pjpg&auto=webp&s=7a65d49fb1cbdd6a73da62f4eb5ac81fb3b92808
The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to cryptoall [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The Greatest Fails: 10 Dead Coins You Didn't Know About

https://preview.redd.it/bpdx4oj4eym31.jpg?width=1920&format=pjpg&auto=webp&s=8c762cdfae9c9d4829082dcd429eb1dbcf2d6413
The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to CryptoCurrencyTrading [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The Greatest Fails: 10 Dead Coins You Didn't Know About

https://preview.redd.it/inxpnmn2eym31.jpg?width=1920&format=pjpg&auto=webp&s=c2c2ff15c1abaebfcfee97264de3ab36bcb60943
The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to CryptoCluster [link] [comments]

The Greatest Fails: 10 Dead Coins You Didn't Know About

The Greatest Fails: 10 Dead Coins You Didn't Know About

https://preview.redd.it/6mr1ig5s8ym31.jpg?width=1920&format=pjpg&auto=webp&s=907b49a959fdf15a47ed433d2ef46797c6d089b1
The population of cryptocurrencies continues to increase almost on a daily basis. While new projects emerge with their coins, the previously created ones are in different stages of development.
Blockchains are created to solve specialized problems, and to do so, their underlying tokens are employed. In the process, the tokens are supposed to have increased demand and become elements of value.
Many tokens have not been able to live up to this expectation, as a result they lose value and fade into oblivion. The reasons for these failures vary and depend on what happens before, during or after they are distributed.
Some blockchain tokens are products of outright scams, while some are unable to compete with bigger projects that are already offering similar solutions. Others fail simply due to lack of capacity. In the end, these coins that depreciate to irrecoverable levels are classified as “deadcoins”. Here is a list of 10 deadcoins that you didn’t know about.
10. Swisscoin
With no data on its daily volume and no network activity, Swisscoin is regarded as one of the deadcoins in the cryptocurrency ecosystem.
Although some of the infrastructure used to operate Swisscoin are still in existence, many people in crypto space consider it as a scam coin due to lack of a genuine use case.
During its hay days, Swisscoin (SIC) was propagated more as a tool for networking. It was a ponzi scheme that sucked in as many ignorant users as it could. The people behind it took advantage of the crypto frenzy of 2016/2017 period, after which activities surrounding the coin dropped significantly.
At a price of $0.000104 and no network activity or trading volume of any kind, Swisscoin qualifies as one of the failed coins within the cryptocurrency space.
9. SpaceBit
By failing to deliver on the promise of using blockchain to launch nano-satellites into space, Spacebit joins the list of deadcoins. Despite becoming popular among crypto users between 2014 and 2015, the project never really came to life and anyone holding the coins at the moment does not really see any value in Spacebit.
8. Enigma
Enigma (ENG) is a crypto platform that’s trying to solve the problem of privacy on the blockchain by giving access to data storage and privacy while remaining scalable. Enigma aims to extend Ethereum Smart Contracts by introducing secret contracts.
Although not completely extinct, this project has struggled probably due to competition from similar projects that are offering better solutions in the industry.
The Enigma (ENG) token, having reached an all time high of $8.30 in January 2018, has struggled to bounce back from the market slump that followed. The coin currently trades below $0.5.
7. DAO
This is one failure that took the industry by storm. This product of Ethereum arrived with so much promise and expectations from the industry. This was reflected in the huge success recorded during the crowdfunding exercise by Ethereum.
A breach of the DAO protocol by hackers in 2016 lead to a massive sell-off, the aftermath of which caused a disagreement within the Ethereum community, and an eventual chain split. This gave rise to the two different versions of Ethereum that exist today, and the demise of the DAO.
6. Zest
Zest is a typical example of what most people regard as scamcoins. On the blockchain, there is absolutely no activity and its history has no data, this is based on information from CoinmarketCap (CMC).
On creation, users were able to generate ZEST through the process of mining and the last known price for Zest is $0.081716. The website is gone, and there is no network activity either for the coin. That is a classic example of a deadcoin.
5. Internet of Service Token
The Internet of Service (IOST) project set out to solve the scalability problem within the blockchain industry. With so much promise for what appeared to be a genuine problem in the industry, the lack of activity on this project over a long period of time qualifies it as a deadcoin.
Even on the projects website, which is still live, data on all the key parameters that could qualify it as a living project are all in NIL. No network activity, no project.
4. PossCoin
The stats on PossCoin are some of the most ridiculous that you will find in the cryptocurrency marketplace. Here are a few that might interest you:
MarketCap - No Data
All time high - $0.00008142
24 hour Volume - No Data
Current price - $0.00000002
This is a classic description of an inactive coin, a failed coin or a deadcoin. With 30,059,347,897 of the 31,999,303,031 total supply of POSS already in circulation, holders of the coins are certain that no value exists in their holdings.
3. Linda Health Coin
Not many people would have heard of this coin, or the project behind it either. LindaHealthCoin (LNDA) is supposed to be a cryptocurrency used to purchase a CryptoHealthInsurance offering an Artificial Intelligence Virtual Medical Assistant App. Today, it counts as one of the projects that did not make it out of the 2017/2018 ICO era.
Midway into the projects ICO, securities regulators in the U.S. state of Colorado issued a cease and desist order halting the initial coin offering (ICO) of Linda Health Coin (LNDA), which they deemed an unregistered security.
This is a hit that the project never recovered from.
2. CryptoCopy
CryptoCopy set out to design a social trading and investing platform that will allow traders and investors in the crypto industry to copy the activities of other successful participants. The idea behind this creation was for “Copy” holders, which is the platform’s native coin, to implement it in accessing the platform for valuable information.
A post on BitcoinTalk described this project to have been reported as a scam by a number of users. Apparently, the Copy community went into oblivion shortly afterwards, confirming every suspicion of it being one of those deliberate exit scams in crypto.
1. BitConnect
BitConnect failed after it was discovered to be operating a classical ponzi. It was an open source cryptocurrency that was connected to a high yield investment program. Many people were sucked in, especially those who did not have a proper understanding of cryptocurrencies. In the end, like every other ponzi scheme, it ran out of life and crashed. Leaving coin holders in the middle of nowhere.
Conclusion
Deadcoins do exist, and as already indicated, the reasons for the demise of projects behind these coins vary. While there are outright scams and unserious projects, there are those who started out with genuine intentions, but could not cope with the demands of the industry.
Holders of deadcoins at the moment consider them of no value. However. The innovation by CoinJanitor has a goal of restoring value for industry participants that hold deadcoins in their portfolio.
Coinjanitor does not revive the projects, rather it swaps its JAN native tokens with the deadcoins that are held by industry participants. This happens when certain conditions are met by the project owners and the community of the deadcoin in question.
Coinjanitor retrieves these deadcoins in the swap and burns them, while the original holders are given fresh and viable JAN coins that introduces them to an active network with a lot of value. This system restores value for coin holder, and at the same time cleans up the industry while getting rid of coins that have no use.
https://coins.newbium.com/post/28199-the-greatest-fails-10-dead-coins-you-didn-t-know
submitted by OliAustin101 to ICOAnalysis [link] [comments]

The Low-Hanging Fruit

The Low-Hanging Fruit
The evolution of Kin has brought about an opportunity for financial success that is rarely encountered. The term “once in a lifetime” gets overused, but I argue that it is applicable to those early adopters who either contribute to the Kin Ecosystem, or those who invest in the currency and hold.
And while the upside is debatable, the downside is not… the reality is that investments of this kind could fall to zero worth. The emotions of people in this situation is evident, and we are seeing the results of that lack of emotional control. Fear is very, very powerful.
I do not believe that Kin is going to fail, and in fact I believe that Kin is a transformative technology that will create a new financial paradigm. This isn’t about buying stickers, chat access or emojis… and though these are the beginning of Kin, I strongly doubt that it will be the extent of its influence. I believe that ordinary people will have the option to work and earn from home, and will be able to build their own success in ways we’ve never seen before. The value of this to ordinary people around the world should not be underestimated. This is the future, and I believe it’s coming, quickly. When we look back on these days, the fears and concerns of the current day will be a distant memory.
Back to present, though, and the reality is that the family of Kin investors is filled with some number of “experts” who may have made money in the insane bubble that was crypto in 2017, and who lament now about slow returns and price manipulations by holders of large amounts of currency. The diametric opposing doppelganger of the “When moon/When Lambo” crypto investor is the “It’s going to ZERO/I’ll laugh when you losers are broke/The Kin Foundation is lying-cheating-defrauding all of us” crypto investor and reddit contributor.
I’m betting you could come up with a half dozen names of these people without trying very hard at all.
I’m not writing this to belabor the basics of Kin, or the value of Kin, or how well I think we’re going to do, or why Kin isn’t led by a bunch of pump and dump shillers out to make a quick $100 million bucks.
I’m writing this to ask you what your expectations are, and just exactly what are you willing to go through to meet your goals? How badly do you want this?
Bitcoin was available for about $0.11 each in 2009-10, or about $0.79 in 2010-2011. It’s easy to think about having bought tens of thousands.. Hell, hundreds of thousands... of BTC, and now sitting on your 100 meter yacht, moored off the coast of the French Riviera, getting your “champagne and caviar” on.
And a few, very notable people actually did exactly that. You know who they are (mostly), and today, they are lauded as “geniuses” who’ve struck it rich beyond any comprehension. We, modern people, who worship financial excess/prowess/success, want nothing more than to elevate ourselves to the position of being one of those “geniuses.”
Of course. That’s what I’d love to see happen… and to see the name Hiker2Mtn elevated to the same level as Vitalik, Satoshi, and McAfee (oh, no, wait… scratch that), though I’d settle for simply becoming more financially secure and able to retire on my own terms. But back to my primary question: What are you willing to go through to get there?
In the past, especially 2016-17, it seemed like making money in Crypto was as easy as painting by the numbers. Buy, sell, buy, sell, read a bunch, buy and sell some more. Trading currencies became analogous with trading stocks, except without those silly regulations, protections, restrictions, and poaching by the monolithic Wall Street oligarch traders… but this was the wild west. Fortunes were made and lost daily. The swings were terrific… and terrible.
Those days are, for now, behind us. They may well return, but at the moment, it’s in the past. Crypto is depressed, significantly so, in large part because of its own success. ICOs have proliferated, and let’s face it, many of them are simply scams. And they’ve take hundreds of millions of dollars in funds from investors.
And this is because those investors, like us, are looking for the next Bitcoin.
And what did those early Bitcoin adopters and holders have to go through?
Incredible swings, including 90%+ depressions in price. Bitcoin being linked to criminal, black market activity, including drug sales, human trafficking and prostitution. Bitcoin being lambasted in the media as a ponzi scheme, as a fraud, as a criminal enterprise.
So I’ll ask again: What are you willing to go through to become one of those early adopter “geniuses” who saw the potential, who invested, and worked, and refused to buy into the FUD and the naysayers and the crapposters and the abusively emotional rekt-speakers?
The low-hanging fruit no longer exists. The days of “easy money”... of day trading into a quick double, or triple or 10x… those days are not today. They are only observable in our rearview mirror, and the subreddits are chock full of guys who claim to have made millions last year, and now issue proclamation after proclamation of insight and knowledge and inside info.
Those guys aren’t real, and there is no fact-checking on a crapposter’s past performance.
If you believe in Kin, in the Foundation’s purpose, and in the changes in the purpose, value and velocity of money, you’re in the right place. If you have legitimate criticisms, great, air them. But if you have never publicly supported this project, have always projected FUD and a Chicken Little mentality, are abusive and mocking and demeaning to those who are working towards the success of Kin… I’m going to go out on a limb and tell you you aren’t welcome here.
For everyone else, what are you willing to go through to be successful? How much FUD are you willing to dispute and counter? How easy did you expect it to be? Wake up and pay attention… things are moving quickly now, and the foundation is moving the chess pieces around the board. While some cite these changes as “proof” that Kin is failing, the reality is that Kin is responding to changing situations, and we should all be grateful that they are.
Don’t mistake Kin’s refusal to show it’s inner workings and secrets to the masses as proof of fraud. That’s ignorant and absolutely false. Just because we aren’t in the loop with decision making doesn’t mean Kin is set to fail. Some very smart people have recently been quite upset that they aren’t kept in the loop, and we’ve seen the results of this. Not everyone can be a General in the war for the future.
So here we are, basically on the cusp of an entirely new financial system. A disruptive financial system. A new paradigm that could change the way all humans on the planet interact in Social Media. Are you willing to support this, even when a handful of naysayers try to convince you that they know everything, and what you’ve already known all along is wrong?
We aren’t here for the quick buck. We aren’t here to bash Kin. We aren’t here to kiss anyone’s ass, either; but the reality is that no one should be here that doesn’t want to be, and by the same token, no one should be here whose goals are to damage and destroy Kin, the Foundation, and the opportunity it represents. Long term, only, with the foreknowledge that there will be ups, and downs, and it won’t be easy to topple the entrenched system.
Hang in there.
submitted by hiker2mtn to KinFoundation [link] [comments]

SEC Chairman Jay Clayton: Statement on Cryptocurrencies and Initial Coin Offerings

https://www.sec.gov/news/public-statement/statement-clayton-2017-12-11
The world’s social media platforms and financial markets are abuzz about cryptocurrencies and “initial coin offerings” (ICOs). There are tales of fortunes made and dreamed to be made. We are hearing the familiar refrain, “this time is different.”
The cryptocurrency and ICO markets have grown rapidly. These markets are local, national and international and include an ever-broadening range of products and participants. They also present investors and other market participants with many questions, some new and some old (but in a new form), including, to list just a few:
The answers to these and other important questions often require an in-depth analysis, and the answers will differ depending on many factors. This statement provides my general views on the cryptocurrency and ICO markets[1] and is directed principally to two groups:

Considerations for Main Street Investors

A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.
Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies.[2] If any person today tells you otherwise, be especially wary.
We have issued investor alerts, bulletins and statements on initial coin offerings and cryptocurrency-related investments, including with respect to the marketing of certain offerings and investments by celebrities and others.[3] Please take a moment to read them. If you choose to invest in these products, please ask questions and demand clear answers. A list of sample questions that may be helpful is attached.
As with any other type of potential investment, if a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost.
Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge. As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.
To learn more about these markets and their regulation, please read the “Additional Discussion of Cryptocurrencies, ICOs and Securities Regulation” section below.

Considerations for Market Professionals

I believe that initial coin offerings – whether they represent offerings of securities or not – can be effective ways for entrepreneurs and others to raise funding, including for innovative projects. However, any such activity that involves an offering of securities must be accompanied by the important disclosures, processes and other investor protections that our securities laws require. A change in the structure of a securities offering does not change the fundamental point that when a security is being offered, our securities laws must be followed.[4] Said another way, replacing a traditional corporate interest recorded in a central ledger with an enterprise interest recorded through a blockchain entry on a distributed ledger may change the form of the transaction, but it does not change the substance.
I urge market professionals, including securities lawyers, accountants and consultants, to read closely the investigative report we released earlier this year (the “21(a) Report”)[5] and review our subsequent enforcement actions.[6] In the 21(a) Report, the Commission applied longstanding securities law principles to demonstrate that a particular token constituted an investment contract and therefore was a security under our federal securities laws. Specifically, we concluded that the token offering represented an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.
Following the issuance of the 21(a) Report, certain market professionals have attempted to highlight utility characteristics of their proposed initial coin offerings in an effort to claim that their proposed tokens or coins are not securities. Many of these assertions appear to elevate form over substance. Merely calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security. Tokens and offerings that incorporate features and marketing efforts that emphasize the potential for profits based on the entrepreneurial or managerial efforts of others continue to contain the hallmarks of a security under U.S. law. On this and other points where the application of expertise and judgment is expected, I believe that gatekeepers and others, including securities lawyers, accountants and consultants, need to focus on their responsibilities. I urge you to be guided by the principal motivation for our registration, offering process and disclosure requirements: investor protection and, in particular, the protection of our Main Street investors.
I also caution market participants against promoting or touting the offer and sale of coins without first determining whether the securities laws apply to those actions. Selling securities generally requires a license, and experience shows that excessive touting in thinly traded and volatile markets can be an indicator of “scalping,” “pump and dump” and other manipulations and frauds. Similarly, I also caution those who operate systems and platforms that effect or facilitate transactions in these products that they may be operating unregistered exchanges or broker-dealers that are in violation of the Securities Exchange Act of 1934.
On cryptocurrencies, I want to emphasize two points. First, while there are cryptocurrencies that do not appear to be securities, simply calling something a “currency” or a currency-based product does not mean that it is not a security. Before launching a cryptocurrency or a product with its value tied to one or more cryptocurrencies, its promoters must either (1) be able to demonstrate that the currency or product is not a security or (2) comply with applicable registration and other requirements under our securities laws. Second, brokers, dealers and other market participants that allow for payments in cryptocurrencies, allow customers to purchase cryptocurrencies on margin, or otherwise use cryptocurrencies to facilitate securities transactions should exercise particular caution, including ensuring that their cryptocurrency activities are not undermining their anti-money laundering and know-your-customer obligations.[7] As I have stated previously, these market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.

Additional Discussion of Cryptocurrencies, ICOs and Securities Regulation

Cryptocurrencies. Speaking broadly, cryptocurrencies purport to be items of inherent value (similar, for instance, to cash or gold) that are designed to enable purchases, sales and other financial transactions. They are intended to provide many of the same functions as long-established currencies such as the U.S. dollar, euro or Japanese yen but do not have the backing of a government or other body. Although the design and maintenance of cryptocurrencies differ, proponents of cryptocurrencies highlight various potential benefits and features of them, including (1) the ability to make transfers without an intermediary and without geographic limitation, (2) finality of settlement, (3) lower transaction costs compared to other forms of payment and (4) the ability to publicly verify transactions. Other often-touted features of cryptocurrencies include personal anonymity and the absence of government regulation or oversight. Critics of cryptocurrencies note that these features may facilitate illicit trading and financial transactions, and that some of the purported beneficial features may not prove to be available in practice.
It has been asserted that cryptocurrencies are not securities and that the offer and sale of cryptocurrencies are beyond the SEC’s jurisdiction. Whether that assertion proves correct with respect to any digital asset that is labeled as a cryptocurrency will depend on the characteristics and use of that particular asset. In any event, it is clear that, just as the SEC has a sharp focus on how U.S. dollar, euro and Japanese yen transactions affect our securities markets, we have the same interests and responsibilities with respect to cryptocurrencies. This extends, for example, to securities firms and other market participants that allow payments to be made in cryptocurrencies, set up structures to invest in or hold cryptocurrencies, or extend credit to customers to purchase or hold cryptocurrencies.
Initial Coin Offerings. Coinciding with the substantial growth in cryptocurrencies, companies and individuals increasingly have been using initial coin offerings to raise capital for their businesses and projects. Typically these offerings involve the opportunity for individual investors to exchange currency such as U.S. dollars or cryptocurrencies in return for a digital asset labeled as a coin or token.
These offerings can take many different forms, and the rights and interests a coin is purported to provide the holder can vary widely. A key question for all ICO market participants: “Is the coin or token a security?” As securities law practitioners know well, the answer depends on the facts. For example, a token that represents a participation interest in a book-of-the-month club may not implicate our securities laws, and may well be an efficient way for the club’s operators to fund the future acquisition of books and facilitate the distribution of those books to token holders. In contrast, many token offerings appear to have gone beyond this construct and are more analogous to interests in a yet-to-be-built publishing house with the authors, books and distribution networks all to come. It is especially troubling when the promoters of these offerings emphasize the secondary market trading potential of these tokens. Prospective purchasers are being sold on the potential for tokens to increase in value – with the ability to lock in those increases by reselling the tokens on a secondary market – or to otherwise profit from the tokens based on the efforts of others. These are key hallmarks of a security and a securities offering.
By and large, the structures of initial coin offerings that I have seen promoted involve the offer and sale of securities and directly implicate the securities registration requirements and other investor protection provisions of our federal securities laws. Generally speaking, these laws provide that investors deserve to know what they are investing in and the relevant risks involved.
I have asked the SEC’s Division of Enforcement to continue to police this area vigorously and recommend enforcement actions against those that conduct initial coin offerings in violation of the federal securities laws.

Conclusion

We at the SEC are committed to promoting capital formation. The technology on which cryptocurrencies and ICOs are based may prove to be disruptive, transformative and efficiency enhancing. I am confident that developments in fintech will help facilitate capital formation and provide promising investment opportunities for institutional and Main Street investors alike.
I encourage Main Street investors to be open to these opportunities, but to ask good questions, demand clear answers and apply good common sense when doing so. When advising clients, designing products and engaging in transactions, market participants and their advisers should thoughtfully consider our laws, regulations and guidance, as well as our principles-based securities law framework, which has served us well in the face of new developments for more than 80 years. I also encourage market participants and their advisers to engage with the SEC staff to aid in their analysis under the securities laws. Staff providing assistance on these matters remain available at [email protected] .

Sample Questions for Investors Considering a Cryptocurrency or ICO Investment Opportunity[8]

[1] This statement is my own and does not reflect the views of any other Commissioner or the Commission. This statement is not, and should not be taken as, a definitive discussion of applicable law, all the relevant risks with respect to these products, or a statement of my position on any particular product. Additionally, this statement is not a comment on any particular submission, in the form of a proposed rule change or otherwise, pending before the Commission.
[2] The CFTC has designated bitcoin as a commodity. Fraud and manipulation involving bitcoin traded in interstate commerce are appropriately within the purview of the CFTC, as is the regulation of commodity futures tied directly to bitcoin. That said, products linked to the value of underlying digital assets, including bitcoin and other cryptocurrencies, may be structured as securities products subject to registration under the Securities Act of 1933 or the Investment Company Act of 1940.
[3] Statement on Potentially Unlawful Promotion of Initial Coin Offerings and Other Investments by Celebrities and Others (Nov. 1, 2017), available at https://www.sec.gov/news/public-statement/statement-potentially-unlawful-promotion-icos; Investor Alert: Public Companies Making ICO-Related Claims (Aug. 28, 2017), available at https://www.sec.gov/oiea/investor-alerts-and-bulletins/ia_icorelatedclaims; Investor Bulletin: Initial Coin Offerings (July 25, 2017), available at https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings; Investor Alert: Bitcoin and Other Virtual Currency-Related Investments (May 7, 2014), available at https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-alert-bitcoin-other-virtual-currency; Investor Alert: Ponzi Schemes Using Virtual Currencies (July 23, 2013), available at https://www.sec.gov/investoalerts/ia_virtualcurrencies.pdf.
[4] It is possible to conduct an ICO without triggering the SEC’s registration requirements. For example, just as with a Regulation D exempt offering to raise capital for the manufacturing of a physical product, an initial coin offering that is a security can be structured so that it qualifies for an applicable exemption from the registration requirements.
[5] Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO (July 25, 2017), available at https://www.sec.gov/litigation/investreport/34-81207.pdf.
[6] Press Release, Company Halts ICO After SEC Raises Registration Concerns (Dec. 11, 2017), available at https://www.sec.gov/news/press-release/2017-227; Press Release, SEC Emergency Action Halts ICO Scam (Dec. 4, 2017), available at https://www.sec.gov/news/press-release/2017-219; Press Release, SEC Exposes Two Initial Coin Offerings Purportedly Backed by Real Estate and Diamonds (Sept. 29, 2017), available at https://www.sec.gov/news/press-release/2017-185-0.
[7] I am particularly concerned about market participants who extend to customers credit in U.S. dollars – a relatively stable asset – to enable the purchase of cryptocurrencies, which, in recent experience, have proven to be a more volatile asset.
[8] This is not intended to represent an exhaustive list. Please also see the SEC investor bulletins, alerts and statements referenced in note 3 of this statement.
https://www.sec.gov/news/public-statement/statement-clayton-2017-12-11
submitted by modeless to BitcoinMarkets [link] [comments]

Bitconnect Ponzi Scheme Exit Scams with CryptoNick! NEWS! What is a Ponzi scheme in cryptocurrencies? Robert Kiyosaki: Cruz on Social Security: “Ponzi scheme” Why Social Security Is NOT Like a Ponzi Scheme - YouTube

While those results resoundingly reject “we earned it” rhetoric for Medicare, the Social Security results, with new retirees getting less than they paid in, could be spun as “proving” Social Security is not a Ponzi scheme. However, that would be false. The reason is that Medicare is still in its expansion phase, as with Medicare Part D, piling up still bigger future IOUs. However ... When you already have a presumption that BITCOIN is a ponzi scheme, you are eliminating half of the people who think otherwise to answer your question. Let me answer this question by trying to understand your intention in asking such a presumptuou... Enter the bitcoin amount you would like to donate: ... Social Security is not a Ponzi Scheme. By Taylor Pace from The Free Mind link Nov 11, 2015 . It’s worse than a Ponzi scheme. I’ll explain, but first I’ll give a brief history of how this form of fraud got its name. The name comes from Charles Ponzi, an Italian immigrant living in Boston who found a clever way to make money through ... Finally, in one important respect a classic Ponzi scheme is less dangerous than Social Security: It relies on fooling people into voluntarily handing over their money. Once the fraud is detected, the danger is eliminated. In contrast, American workers have no choice but to "contribute" to Social Security, whether they like the deal or not. "It’s just one big Ponzi scheme," Portnoy told bitcoin and cryptocurrency investor Anthony Pompliano on the popular Pomp Podcast this week. "You get in, and you just have to not be the one left ...

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Bitconnect Ponzi Scheme Exit Scams with CryptoNick! NEWS!

If you have found the video insightful please like and subscribe and share with your friends and social media! If you would like to thank me through coins you can donate to one of these wallets ... Social Security is a Ponzi Sheme. Social Security is a Ponzi Sheme . Skip navigation Sign in. Search. Loading... Close. This video is unavailable. Watch Queue Queue. Watch Queue Queue. Remove all ... Is Social Security a Ponzi Scheme - Steve Savant’s Money, the Name of the Game – Part 2 of 5 - Duration: 11:07. Steve Savant Recommended for you. 11:07. A liberal accidentally explains why she thinks Social Security is nothing like a Ponzi scheme. Watch more conversations with a liberal at: http://Battlefield... Robert Kiyosaki sits down with Kurt Carlton, CEO of Sherman Bridge Lending and Andrew Welker, CEO of New Western. Kiyosaki states he mainly invests in distre...

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