Comes every sunday Hodler’s digest Follows all of the major crypto news from the past week. Basic reading for all hodlers!
Top Stories This Week
CFTC charges BitMEX with illegally operating derivatives exchanges
The US Commodity Futures Trading Commission has accused the derivatives exchange BitMEX of operating an unregistered trading platform and of violating anti-money laundering regulations.
Law enforcement proceedings have been filed against five companies and three people who allegedly own and operate the exchange – including Arthur Hayes, CEO of BitMEX.
The CFTC accuses the exchanges of failing to adhere to “the most basic compliance procedures” and is seeking the return of all “improper profits,” civil fines, permanent trade bans and orders against future violations.
BitMEX attacked the “persistent” charges. The exchange said it is planned vigorously defend themselves against the allegationsand stressed that his platform continues to function normally.
Even so, data from Crystal Blockchain points to an unprecedented one 45,000 BTC (with a market value of $ 475 million) have been withdrawn from BitMEX since the fees were charged.
KuCoin CEO claims to have hacked suspects
Now let’s take a closer look at what happened at KuCoin. It is estimated that the Singapore-based exchange lost more than $ 200 million in client funds as a result of a major hack in late September.
Hot purses for BTC, ETH and ERC-20 tokens were hit by the incident, and analysts have claimed that most of the funds stolen were ERC-20 tokens and the illicit profits could easily be laundered through DeFi protocols.
On Saturday, KuCoin CEO Johnny Lyu said a “thorough investigation” uncovered “substantial evidence” that enabled him to identify some suspects.
“Law enforcement officers and police are officially involved to take action,” he wrote on Twitter.
Lyu added that KuCoin is slowly back to full functionality and has reopened deposits and withdrawals for 31 tokens. Services for BTC, ETH and USDT will follow.
Chainalysis and the Texas-based company win a $ 1 million IRS contract to crack Monero
For chain analysis, it triples all around. The IRS gave the blockchain analytics firm a cool $ 500,000 upfront as it tried to develop tools to track transactions made with the Monero privacy coin as well as Layer Two protocols.
Another company, the lesser known Integra FEC, has also signed a deal on identical terms. If its technology is proven successful and approved for use, it will receive an additional $ 125,000.
The American Treasury Officer received a total of 22 suggestions when he set out to curb privacy coins, fearing that they would be increasingly used by cyber criminals. It said “comparative analysis was used” to decide which companies should win the contract.
Chainalysis is a leader in cryptanalysis and routinely wins such contracts with a number of government agencies.
Global economy saved: Reddit’s MOON token has a market capitalization of $ 2.64 million
The coronavirus tore the global economy to pieces – but don’t worry … Reddit may just have saved the day.
Merchants have apparently found a way to exchange the crypto-based “Community Points” tokens of the social network for Fiat.
According to Etherscan, more than 30 million MOONs have been distributed to 7,800 addresses. Given that these tokens changed hands from Honeyswap at one point for $ 0.088 xDAI, that would result in a market cap of $ 2.66 million. In contrast, the entire global economy was worth around $ 133 trillion in 2019.But don’t pop the champagne just yet. It seems more than possible that this is just a poorly written smart contract. The offering stated by MOON is actually 30 million tokens, which gives the project a market capitalization of just $ 2.64 million. That’s barely enough to get the good times rolling again.
According to a Cambridge study, 100 million are using crypto-based assets worldwide
This next story illustrates the Everestian challenge Bitcoin faces.
A new study by the Cambridge Center for Alternative Finance recently found that 100 million people worldwide currently own Bitcoin and other blockchain-based assets.
That is a 189% Increase compared to 2018, when there were an estimated 35 million identity-verified crypto users worldwide.
The numbers from the third quarter of 2020 also showed that it was up to 191 million Accounts on crypto exchanges – a number that does not contain any self-hosted wallets.
Winner and Loser
At the end of the week, Bitcoin is at $ 10,614.21, Ether at $ 348.89 and XRP at $ 0.24. The total market capitalization is $ 339,870,924,686.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week Celsius, Arweave and Zilliqa. The top three altcoin losers of the week are Longing financing, PumaPay and SushiSwap.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“KuCoin acts quickly and transparently to deal with it. We are trying our best to mitigate the impact of the incident by working with many blockchain projects, security firms and crypto exchanges. “
Charlie Cai, KuCoin Media Manager
“Tonight @FLOTUS and I tested positive for COVID-19. We will start the quarantine and recovery process immediately. We’ll get through this TOGETHER! “
Donald Trump, American President
“I think once and for all we can all agree that #btc is not correlated to gold and stocks, no hacking and changing whenever it suits our bias. So it is now.”
“Benjamin Blunts, ”Pseudonymous dealer
“NBA Top Shot on a scalable blockchain like Flow is the first time fans can own some of the action on the pitch.”
Aaron Gordon, professional NBA player and Dapper Labs investor
“The Bitcoin market has always reacted negatively to major stock market problems or government confiscations. In the past, this has always been a great buying opportunity for Bitcoin. The Justice Department’s action against BitMEX will be no different. “
Vijay Boyapati, Bitcoin researcher
“In public statements and at public events promoting Kin, Kik praised Kin’s profit potential. Kik’s CEO explained the role of supply and demand in increasing the value of Kin: Kik only offered a limited supply of Kin, so Kin’s value would increase as demand increased. “
Alvin Kellerstein, U.S. District Judge
“We are seeing an increase in the activity of new entrants to BTC that is not yet reflected in the price. This does not happen often.” This is what traders refer to as divergence. In this case, this is obviously bullish. “
Willy Woo, On-chain analyst
“DeFi is the new hyped concept in Ethereum. The noise is too much so everyone is like walking around trying to figure out what the next big thing is and then putting a ton of money into it without doing enough research. “
Kosala Hemachandra, CEO of MyEtherWallet
“Apparently there is some kind of bitcoin buying race between MicroStrategy and Grayscale. Continue to play.”
Barry Silbert, Grayscale CEO
FUD of the week
Court rulings Kik’s ICO 2017 violated US securities laws
A judge joined the U.S. Securities and Exchange Commission and ruled that Kik’s initial $ 100 million coin offer violated federal securities laws.
Judge Alvin Kellerstein concluded that the ICO participants had a reasonable expectation of profit.
“In public statements and at public events promoting Kin, Kik praised Kin’s profit potential,” he said.
The SEC filed its complaint against Kik in June 2019, alleging that the company violated securities laws by selling $ 55 million Kin tokens to U.S. investors (and the rest to overseas investors) in 2017 have.
In a statement, Ted Livingston, CEO of Kik, said the company was “obviously disappointed” with the verdict and confirmed that it was open to appeal.
More than half of all crypto exchanges have weak or no ID verification
According to a new CipherTrace study, 56% of exchanges worldwide have weak KYC identification protocols, and platforms in Europe, the US and the UK are among the worst offenders.
The blockchain analysis company analyzed more than 800 decentralized, centralized and automated market maker exchanges for its research.
Although Europe is known for stricter regulations, it has also been found that it has the highest percentage of virtual asset service providers with poor KYC practices. The US, UK and Russia are the three countries with the highest number of exchanges with weak KYC.
Given the results, Dave Jevans, CEO of CipherTrace, warned that he doesn’t think DeFi will be able to escape regulations for long.
DeFi is too loud, says the CEO of MyEtherWallet
It looks like the CEO and founder of MyEtherWallet, Kosala Hemachandra, has a bad view of the decentralized financial industry.
In an interview with Cointelegraph, he said: “DeFi is the new hyped concept in Ethereum. The noise is too much so everyone is like walking around trying to find out what the next big thing is and then putting a ton of money into it without doing enough research. “
Hemachandra also warned that DeFi is to blame for the fact that gas prices in Ethereum have skyrocketed in recent weeks. Sometimes they cost users anywhere from $ 40 to $ 80 per transaction.
Best Cointelegraph properties
Open Sesame: Will the Monero “crack” reveal treasure or fool’s gold?
Three blockchain analytics companies reportedly have Monero tracking capabilities that could affect the price of XMR. Can anyone actually track this? This is Benjamin Pirus.
PwC’s global crypto tax report shows that more regulatory guidance is needed
The majority of global jurisdictions have guidelines for taxing crypto assets, but Rachel Wolfson argues that additional frameworks are needed to keep up.
Cashless future ahead? Utopian digital dream with dystopian inequality
A society without paper money could be a less just society, and Andrew Singer warns that those who lack digital connectivity will suffer.