Category: Crypto

The price of bitcoin and several other major cryptocurrencies have dropped dramatically over the last 24 hours, wiping billions from their value.

Bitcoin fell by more than 10 per cent to take its price below $7,400 (£5,700) for the first time since May, with no sign of the current crash slowing down.

Ethereum, ripple, bitcoin cash and ripple all saw losses of between 5 and 15 per cent over the last day.

The market movement comes in stark contrast to bitcoin’s generally positive year-to-date, which has seen it rise from below $4,000 in January 2019

Recent positive developments in the cryptocurrency space had some investors hoping that bitcoin would continue to see gains, especially after both China and the EU appeared to endorse the notion of blockchain-backed digital currency.

Last month Chinese president Xi Jinping described it as an “important breakthrough”, prompting a state-run newspaper to publish a front-page story about the success of bitcoin.

It came after years of China taking a hardline stance towards the industry and comes amid rumours that the country is preparing to launch its own cryptocurrency next year.

One possible explanation for bitcoin’s mysterious crash could be further developments in China that saw a fresh crackdown on illegal exchanges.

The country’s public endorsement of cryptocurrency seemed to fuel an increase in trading activity on illicit platforms, resulting in a response from the People’s Bank of China.

“Once it is discovered, it will be stopped immediately,” the bank stated.

The price of bitcoin is closing in on its 2019 high, after shooting up by $500 (£400) in less than 10 minutes.

The latest surge in value on Monday follows several months of significant gains for the world’s biggest cryptocurrency, which have seen its price more than treble since the start of the year.

Its current price of $11,800 (£9,400) remains a long way off its all-time high of close to $20,000 (£16,000) that it reached in late 2017, but some analysts believe the record is in sight.

The notoriously volatile digital currency has been boosted in recent weeks by news that Facebook plans to launch its own cryptocurrency.

Interest from the tech giant should push forward much-needed regulation in the space, which should add legitimacy to bitcoin and the exchanges it is traded on.

Cryptocurrency experts have noted some key differences between the remarkable surge of 2017 and the price rally in 2019.

“Bitcoin has reacted much differently in its revival phase this year, after waking up from the crypto freeze of 2018,” Christel Quek, chief commercial officer of blockchain firm Bolt, told The Independent.

“While bitcoin increased by a staggering 215 per cent so far this year, its revival and growth has been quite mature and logical in comparison to 2017.”

Market analysts have described the dramatic price gains of 2017, which saw bitcoin rise from around $1,000 (£800) to close to $20,000 over the course of 11 months, as having the characteristics of a bubble.

This was fuelled by investors seeking to make a quick profit from the market frenzy.

“In contrast, 2019 has seen a more mature movement, while the revival has also been a natural reaction to a changing crypto-friendly atmosphere in mainstream finance,” Ms Quek said.

“For instance, Facebook and JP Morgan’s entry into the space was a major endorsement to the idea of digital currencies.”

Ms Quek predicts that bitcoin’s current momentum will continue, at least in the short term, with the 2017 record the next major milestone to pass.

GlobalCoin could do what bitcoin has failed to do in its 10-year history by achieving mainstream adoption.

Facebook is weeks away from launching its own cryptocurrency, with reports suggesting it will be available within its suite of apps, as well as through ATM cash machines.

Rumours of the bitcoin-style currency have been circulating since early last year, when Facebook created a new blockchain division within its company.

The social network, which is used by more than two billion people around the world, is yet to officially reveal any details but various leaks have given an indication of what to expect.

Most recently, TechCrunch spoke with numerous investors briefed on the project, codenamed Libra, about how the cryptocurrency will be rolled out across the technology giant’s social media and messaging apps, which include Instagram, Messenger and WhatsApp.

Users of the apps would even be able to buy the GlobalCoin cryptocurrency, as it is reportedly called, from physical locations like ATMs.

Music producer DJ Khaled and boxer Floyd Mayweather Jr. were charged by the Securities and Exchange Commission with promoting investments in initial cryptocurrency coin offerings without revealing that they’d been paid.

The SEC has said that cryptocurrency coins sold in initial coin offerings (ICOs) may be considered securities and subject to federal securities laws.
Both Khaled and Mayweather settled with the SEC and agreed not to promote any securities, even digital ones, for two years and three years, respectively, the SEC said Thursday. They also agreed to give the money they’d received to the SEC and pay penalties and interest.
Mayweather failed to disclose that he’d received $300,000 from three different ICO issuers, including $100,000 from Centra Tech. Khaled failed to disclose a payment of $50,000 from the same company.
Centra has separately been charged by the SEC, which alleged that its ICO was fraudulent.
Centra could not immediately be reached for comment.
Both Mayweather and Khaled promoted Centra’s ICO on their social media accounts. Khaled called it a “game changer” while Mayweather encouraged his followers to get in on the ICO, saying he’d taken part.
Mayweather also commented on another ICO, saying he was going to make a lot of money.
“You can call me Floyd Crypto Mayweather from now on,” he tweeted.
The SEC, which has made it clear that ICOs can be fraudulent, encourages would-be investors to be wary of those ICOs that are endorsed by celebrities.
“With no disclosure about the payments, Mayweather and Khaled’s ICO promotions may have appeared to be unbiased, rather than paid endorsements,” said SEC Enforcement Division co-director Stephanie Avakian.
“Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds,” said Steven Peikin, another SEC enforcement division co-director.
This is the first time the SEC has brought charges against individuals for promoting ICOs and the investigation is ongoing.

Trade association says shortage of new coins means they will continue to accept existing version.
Thousands of shops are likely to ignore the Royal Mint’s deadline of Sunday to stop accepting old £1 coins.

A trade organisation representing 170,000 businesses has advised its members to continue taking the coins, because the changeover period with the new coins has been so short.

Mike Cherry, the national chairman of the Federation of Small Businesses , said companies had embraced the new £1 as an invaluable way to reduce counterfeiting. Many had modified coin-operated equipment, while others separated out millions of old coins to be melted down.

“But the changeover period has been fairly short,” he said. “While no business is obliged to accept the old coins beyond the deadline, it would help if small firms knew they were allowed a short transition period to collect the old coins if they wish to, and are willing to bank them, but not give out to customers.

“This would provide a useful community service, allowing customers a few weeks to get rid of the final few pound coins in circulation.”

From midnight on Sunday 15 October, the coins will lose their legal tender status. After this date, shops and restaurants should no longer accept them. With a week to go, about 500m are still in circulation.

Poundland said more than 850 of its UK stores would continue accepting the coins until 31 October.

Barry Williams, the discount store chain’s trading director, told the Telegraph it was a “no brainer” to continue to accept the old coins.

“Providing an extra convenience for shoppers to lighten their pockets while doing the weekly shop, rather than making a separate trip to the bank or post office, will come as good news,” he said.

Advice for retailers on the Royal Mint website says: “You are under no obligation to accept the round £1 coin from your customers and you should not distribute the round £1 coin. Please update your staff on what they need to do.”

A Treasury spokesman said: “We will have received more than 1.2bn round pound coins by the time they cease being legal tender. We have worked with industry for over three years to ensure a smooth transition to the new more secure £1 coin.”

While major banks are encouraging customers to allow enough time to hand in their old coins, they have said they will continue to accept deposits of round £1 coins after 15 October.

The new coin, which resembles the old threepenny bit, entered circulation in March and has security features to thwart criminals.

The production of the new coins followed concern about round pounds being vulnerable to sophisticated counterfeiters. About one in every 30 £1 coins in recent years has been fake.

German police arrested at least 2 people, but the coin hasn’t been found.

Hundreds of German special police raided several buildings in Berlin early Wednesday, arresting four suspects in connection with the brazen heist of a 100 kg Canadian gold coin stolen from one of the city’s museums earlier this year.

Heavily armed masked police arrested the suspects, one wearing a hood over his head, in Berlin’s Neukoelln neighborhood. Another nine people are being questioned in the case. All suspects are related to one another and aged between 18 and 20, police said.

The raids of 13 different buildings lasted several hours, but the gold coin was not recovered.

“We assume that the coin was partially or completely sold,” Carsten Pfohl of the Berlin state criminal office told reporters at a press conference. He added that police also confiscated clothes and cars to comb for traces of gold.

​Massive ‘Big Maple Leaf’ gold coin worth millions stolen from German museum

The Canadian “Big Maple Leaf” coin, worth several million dollars, was stolen from the Bode museum in March.

Police say the three-centimetre thick gold coin, has a diameter of 53 cm, and a face value of $1 million. By weight alone, however, it would be worth roughly $5.8 million at market prices.

Experts think the coin may have been melted down already to cash in on the gold. Police also searched a jewelry store in the Berlin neighbourhood, saying they had indications the store may have been involved in the possible sale of the gold.

The thieves were most likely tipped off to the existence of the enormous coin by an acquaintance who worked at the museum as a guard, police said.

THE CURRENT | How did thieves steal gigantic $1M Canadian gold coin from Berlin museum?
At least two burglars broke into the museum at night on March 27, using a ladder to climb to a window from elevated railway tracks. They grabbed the coin, loaded it onto a wheelbarrow and then carted it out of the building and along the tracks across the Spree River before descending into a park on a rope and fleeing in a getaway car.

Police had published footage from surveillance video asking the public for help in finding the thieves.

The coin, which has an image of Queen Elizabeth on one side and maple leaves on the other, was on loan from a private, unidentified person, it has been reported. It’s one of only five that were made by the Royal Canadian Mint.