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An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
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Falling cryptoworld: Cryptolab's OPINION

Falling cryptoworld: Cryptolab's OPINION
Yesterday, the total market capitalization collapsed for almost 14%. Now all everyone is concerned only with two questions: what happened and when will it end?
While the best minds of the cryptoworld still keep silence, Cryptolaboratory is trying to find answers. Let's start with the reasons. Ethereum and Bitcoin Cash could be the main catalysts.
Ethereum is being failed numerous ICOs who have chosen this blockchain for their start. ICOs sell Ethereum collected during the crowdsale, thereby causing the price of ETH is rolling slowly below $200. It has already led to the fact that this cryptocurrency gave the XRP second place in the CoinMarketCap capitalization rating. We think it is not the end.
Bitcoin Cash today is waiting for a hard fork, around which a lot of noise is raised. Most likely, ordinary investors throw off this currency, do not want to risk. Just imagine, two parts of cryptocommunity are trying to divide the fourth in the world (in terms of capitalization) cryptocurrency into two, and this is not a delight for any of the parties. It is not surprising that the sale has begun.
One can also note the long wait for positive decisions from SEC on Bitcoin-ETF, the absence of large investors in the market and other artificial delay of the cryptocurrency revolution. As for Bitcoin (BTC) directly, now BTC/USDT pair took about 60% of all Bitcoin trade. This means that investors are transferring their funds to the stablecoins to avoid additional losses.
Now, regarding the question of when the decrease will stop. We are afraid that we will disappoint, but nobody can not say that reliably. Looking at Bitcoin weekly chart, we can only assume that if it continues to fall, it will meet the nearest resistance near $ 5,000. We hope that it will unfold earlier.
https://preview.redd.it/fkhnvcj8vfy11.png?width=623&format=png&auto=webp&s=70529e4c2abca9766d56892406a17d3c4b641fd8
Cryptolaboratory's Opinion. We don't claim the truth, but the truth is close.
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Hype in an ICO

Hello!
My name is Dmitrii Skripkin, I am the head of traffic department at Platinum, the company that can attract crypto community to your project, provides best ICO and STO marketing services and can be really helpful in teaching about crypto-economics.
Learn more:
Platinum.fund
As for the teaching… Welcome to the UBAI! Here we gathered all our knowledge to share it with people who just step on the road of crypto success.
If you want to understand the overall influence hype can have on a team and anyone involved with an ICO project, take a look at the summary of our lesson
What is Hype in Cryptocurrency
The English Dictionary defines ‘hype’ as extravagant or intensive publicity or promotion. Therefore it is only right that we define cryptocurrency hype as extravagant or intense publicity and promotion for any kind of cryptocurrency. Recent research suggests there is a 60% chance that people around you have encountered the word ‘bitcoin’, or ‘cryptocurrency’ from one source or another. This widespread publicity was also catalyzed by the stunning and sudden rise of the price of bitcoin in 2017 (and other times as well), which led to a frenzy in FOMO, fear of missing out, which drove otherwise skeptical people to eventually believe in cryptocurrencies. From that point, many people started to believe in the idea and potential of cryptocurrencies. This led to even further growth in optimism among members of the cryptocurrency community, which, in turn, drove demand and hype to absolutely atmospheric levels. There is an ongoing argument among financial experts about the nature and destiny of cryptocurrencies. One school of thought is that crypto is, in fact, the next evolution of money. Other people think crypto is nothing but a bubble or fraud and will eventually fade into oblivion.
Roles of Hype
It is a fact there is hype in the cryptocurrency industry. It is also a fact that investors often trade and hold positions based on that hype. But before speaking about the role and purpose of cryptocurrency hype, let’s take a look at the major causes behind it. Ever increasing media coverage has brought the entire crypto sphere into the limelight. Just the media calling bitcoin “Digital Gold” has coaxed people into buying and hoarding bitcoins for themselves. Increasing groups of cryptocurrency believers have spread the idea that cryptocurrencies are a unique store of value, uncorrelated to other more traditional asset classes. There is also a significant number of individuals who purchased bitcoins before the sudden rise in value and are now hoarding their currency like gold, seemingly unwilling to sell at any price. The money to be made in crypto has attracted a great number of miners. We have previously discussed the key role and value of coin miners to the integrity of the blockchain. These miners help support not only the price and the maturity of bitcoin, but also the blockchain technology on which bitcoin depends.
Common ICO Narratives in a nutshell
An ICO is a funding mechanism that a company uses primarily to raise early stage capital. So far it has largely been blockchain-based technology solutions which employ “Tokens” (cryptocurrencies or digital assets) that are functionally used in the company’s solution, so as to give them a relative value. These days, there are a large number of companies constantly ‘pre’, ‘on’ or ‘post’ ICO. But the first ever recorded ICO was by Mastercoin in 2013. Their campaign lasted for almost a month, with Mastercoin raising up to 5,000 BTC, then valued at $500,000 USD. A year later, Ethereum was launched. And in 2015, the Frontier, an experimental release of Ethereum platform was released. A month later, Augur Token was launched. Since then, many other ICOs have followed. In 2016 alone, ICO sales raised up to $103 million with ICONOMI and SingularDTV leading the sale with $10 million and $7.5 million. In many ways, ICOs were made possible by the ease with which companies were able to create their ICO tokens on the Ethereum Blockchain technology. With the success of bitcoin and the explosive growth of ICOs for various purposes, the market has shifted solely from the topics of blockchain tech and cryptocurrency solutions, to more specific and practical applications of these solutions to actual real world problems. But at the same time, there has also been a large number of scams as a result of the lack of regulation and insufficient oversight. This is something to always keep in mind when you are considering ICO investments.
The Power of Perception
People’s perception of an ICO depends upon several key factors. Due to the incredibly large amount of paper wealth generated by investing in cryptocurrency, people are inclined to invest with less stringent diligence, even regarding their own money. That is, for better or worse, generally more true for crypto as opposed to traditional investors. Intelligent investors pay particular attention to the following details when evaluating an ICO: -The quality and marketable potential of the idea. -The necessity of a blockchain solution to solve this particular problem. -The quality and commitment of the team to the company. -The tokenmetrics and tokenomics. -The ability to actually bring the solution to market as a viable business.
Signs of Market Hype & Anticipation
A solid understanding of the signs of market hype and any resulting hyper-anticipation requires a multifaceted approach to evaluating an ICO. All the circumstances, situations, prevailing market conditions, and other factors contribute in various ways and to various degrees, to each ICO. It is important to also understand why different investors are investing. Some are committing capital because they truly believe in the idea as a viable business and are planning to hold on for a longer term. Some people are pure speculators hoping to multiply their money and take a profit as fast as they can. There is nothing inherently wrong with either one of those approaches or reasons to invest! The point is, you just need to know with whom you are investing so you can make the most advantageous decisions about your own funds.
The following are signs of ICO market hype: The Social Media Factor When an ICO is looking to build momentum among potential investors, social media is at the top of the list of ways to do it. Social media allows projects to market their product directly to investors without relying upon middlemen, and in many cases, basically, for free. Professional marketers have also appeared recently to help projects focus on developing their project-specific technology, or business connections; while the regular marketing team is able to continue building the necessary awareness and hype. Many ICO projects seek to build large Telegram communities, and of course, schedule their ICO at the most opportune time. If you are wondering how a project is being perceived by the market and general community, reading their Telegram and social media posts will give you useful information. You will see how they think, and a get a good look at actual market opinion.
Hype’s Affect Upon an ICO
Over the years, too many crypto lovers invested in hyped and overrated digital assets that promised a 10x ROI (return on investment). This incredibly large rate of return attracted many eager (sometimes a little too gullible) investors. They eventually learned that while the price of ICO tokens may in fact increase 3x or 10x; they can also fall just as much, and just as easily. Many tokens offered as a part of the early ICOs either never went to market, or failed miserably when they did. Of course there are no guarantees in traditional investing either, but crypto is still at a particularly volatile and treacherous stage of growth. Basically, an ICO token price should primarily be driven by business fundamentals, such as cash flow and profitability. But the wild swings in value, and the low barriers to launch an ICO, have grossly amplified the influence hype has upon an ICO token price. Naturally, investors are focused on their own return on investment more than anything else. So, that is where we will focus our attention now too. This return ultimately rests with the token price, and the ability of the investors to buy low and sell high. There are four key attributes or characteristics of hype which directly lead to stronger demand for a token, and thus, a higher price. If the ICO is backed by influential and well-known crypto investors/Venture Capitalists, the team is very likely to have a large investor base to which they can pitch the coin. This is also true for successful entrepreneurs with a good reputation and track record.
Hype’s Effect on the Team Behind ICO
The team structure behind an ICO plays an important role in the hype process. If an ICO is successful, the developers are likely to draw more attention to themselves, thereby becoming key figures in that success. In that way, an ICO allows a project to both fund an early stage idea, as well as to create a reputation among investors for the individuals involved. After having achieved success on previous ventures, as we have mentioned before, investors will be keen to invest based on an established track record. These factors encourage entrepreneurs to try new ideas as a benefit of having a greater funding profile and a tangible resume to use in all aspects of their business, not just fundraising. A strong resume like that encourages confidence that would allow an individual associated with a successful project to partner with larger, traditional firms. Such an individual would also be more valuable on other projects by both providing insight and access to more investment capital.
If you stay tuned, you must have learned a lot about the hype going around crypto, but what are its cons or even Dangers? Bitcoin alone has about a $284 billion USD market capitalization with about 16.4 million bitcoin in circulation. Hype brings out the latent greed in every investor. On any given day, media people may be discussing the endless potential of cryptocurrencies, or the unbelievable returns from crypto investments. While cryptocurrencies have a solid future ahead of them, with strong underlying technological principles, greed and fear will always induce people to create a world of hyperbole. Most investors do not really look as deeply as they should. They do insufficient research, or all too often, almost no research at all, before investing. This is human nature. Most people do not want to feel like they need to do homework again. People also become mesmerized by the success stories, and they just want to get a piece of the pie at whatever cost. It is always important to stay calm and rational. Stay diligent. Keep your mind focused on the long term too, not just the present moment. If you become too enamored with a project, or try to convince yourself nothing matters because “it will all just rise in value anyway” then you have lost your rational decision making ability. You should take a step back and ensure you aren’t being caught up in the hype.
Dangers of Hype Part 2
Hype and speculation give value to a newly launched coin. At that point you will own an intangible functional token in a very early stage company. The value of what you actually have is only what an exchange or someone else is willing to give you for that token on the open market. The price might move in your favor and earn you a fantastic return. But it can just as easily fall to zero. And in fact, this is exactly what has often happened. When you purchase a token without an underlying cash flow positive business, your entire investment is at the mercy of market expectations and the level of hype in a project. Future cash flows and success will either make or break your investment. The dangers of hype in cryptocurrency can never be overemphasized, and never be overlooked. After all is said and done, it is the average individual investor who will suffer most. Possible Downside from Exposure and Attention Speculative Investments Most newly launched ICOs depend upon the frenzy created by the primary cryptocurrencies (particularly BTC and ETH) hype for success. Most consumers/investors these days buy or invest in an ICO based upon speculative ideas about extraordinary returns. The hype can grow so much it does not leave adequate room for actual facts. The most unfortunate result of all this can be seeing your entire investment wiped out by unscrupulous characters selling you fraudulent coin offerings (ICOs) and scams. Hype can dazzle investors into making investment decisions they later regret. But there is no reason for you to ever make such an avoidable mistake in your own crypto career.
Possible Downside from Exposure and Attention §2 Speculative Investments Continued
For example, in January 2017, the Securities and Exchange Commission (SEC) shut down an allegedly fraudulent initial coin offering (ICO) from a company called ‘AriseBank’. The SEC alleged that the ICO was an “outright scam” which falsely advertised and promised FDIC-insured bank accounts to investors through nonexistent banks. The value of the tokens fell to zero. The incredible hype and seemingly limitless potential of cryptocurrencies at the time, as well as this particular idea, led a large number of investors to commit capital to what was determined to be a scam. It is not only that they made grossly fraudulent claims, but there was simply no protection for investors at all. The investors were left with nothing. Some investors were surely all-in on this one project. Some investors had surely leveraged themselves to the max, borrowed too much, and had to stomach an extremely unpalatable loss. These are incredibly important things to keep in mind. Speculative investments will allow you to make a tremendous sum of money, but they can, and all too often will, take away those funds just as easily.
Hype can create Problems Real World Examples
Only a small fraction of the total ICOs being promoted have a working and viable prototype. Yet, every ICO is looking to sell investors on the likelihood of future success on that project. The Bancor ICO is a real-life example from June 2017. It raised up to $153 million in a matter of hours, but since the sale its value has plunged 38%. Some experts have since found big loopholes in their stated plans and intentions. The demise of many ICO projects is caused by such common issues as no viable product, not adhering to timeline, or a team that is distracted and/or not productive. Other coin scams have also successfully skimmed money from investors as a result of cryptocurrency frenzy. Projects like Benebit which scammed investors of up to $4.5 million by claiming to unify customer loyalty programs via blockchain technology. Benebit proved to be an exit scam, despite all of the major review sites rating the ICO positively. It was widely followed across social media, including 9000 people in its Telegram channel. Many people are still in the project’s Telegram attempting to understand what went wrong, and why.
In our previous posts we’ve talked a lot about the cons of the Hype, but have you ever thought if you can take it into your own hands?
Managing Hype for ICOs
You understand what hype is and what it does. You also need to know, what to do about it, how to manage it, either as a seller or investor aiming to be on the right side of price movements. Crypto is a recognized part of our financial landscape already. ICOs and the Blockchain are here to stay. The point of concern is, the course it will chart from here. It is rapidly becoming the new normal for entrepreneurs to get funding from communities of people or investors sharing an important unifying characteristic or value system. This has, as we have discussed previously, completely revolutionized “business” and the approach to starting, funding and growing a company. In 2017 alone, more than $5.6 billion was invested via ICOs. That huge sum brings real opportunity for growth, and equally real possibility for despair. You can learn from examples, how to manage hype for your own benefit and protection. In the whitepaper, the purpose of the ICO should be clearly stated and sufficient information should be given to investors explaining what the project is and why it deserves to be funded. This helps remove or discourage unnecessary speculation. A good and informative whitepaper helps encourage investors to make decisions based on reasonable conclusions as opposed to dreams and desires.
Always Have a Road Map Many ICOs we see on the internet for example, do not really have any long term plan for their product. ICO whitepapers should produce sufficient information on the timeline of the product and the sequence of necessary steps to get there. Questions such as: “When will a marketable product be available to be sold?” “What are the key risks to achieving any goal or aspect of the timeline?” These questions should be explained in the whitepaper, and supplemented with possible plans and alternate avenues to take if certain major issues arise. 6.3e)Managing Hype for ICOs §4 Many whitepapers might tend to overuse technical terms that sound like gibberish to ordinary intelligent people or investors. If you are trying to sell an idea to a broad spectrum of investors, it is important to explain key terms and themes so people are actually able to understand you. If a whitepaper is overly technical, yet seems to appeal to a broad base of investors anyway, it could be a red flag that the investors are confused, and that was perhaps the purpose of the whitepaper. Alternatively, maybe the team just isn’t particularly experienced at marketing their idea. That could also could present either an opportunity or a problem. One way or another, communication with the market will greatly influence the future price of the token.
Scam Projects Real World Examples
Multinational accounting firm Ernst and Young found that $400 million of the $3.7 billion USD raised from ICOs (as of January 22, 2018) had been stolen. That is, up to 10% of all ICO funding is virtually being stolen from investors. Though ICO scams are the most common method of theft in the crypto world, some projects will actually operate for a period of time before disappearing with the money. Like in a Ponzi scheme, an exit scam may be planned for later, sometime after a manipulated pump; or some other time the team believes is most opportune to take the money and run. Giza: Giza marketed itself as a platform within which different cryptocurrencies could be stored securely. But after raising $2.4 million in one month, the team deleted the website and stopped replying to emails. Investors were duped by a very convincing whitepaper, and actors had been hired to appear in photographs promoting the project. No investor funds have ever been recovered. Centra: The SEC put an end to fundraising for the Centra ICO and charged the founders Robert Farkas and Sohrab Sharma with orchestrating a fraudulent ICO after they raised $32 million USD. They were promoting the ability to develop financial products backed by VISA and Mastercard, though it was later found that neither partnership was real. One of the major red flags in the Centra project was the use of celebrity endorsements for publicity, reportedly paying champion boxer Floyd Mayweather a significant sum to promote their project. Who wants to leave their Blockchain investment decisions up to Floyd Mayweather, regardless of his unbelievable skill as a boxer and regardless of his own financial success? He should still not influence where you invest your money!
Ponzi Schemes: Bitconnect: This is the most infamous Ponzi scheme in the history of cryptocurrency, and certainly the most damaging. Bitconnect was a Bitcoin-based project that rose to an all-time high of $463 per token on the back of a fictitious trading bot. The Bitconnect scam operated by paying dividends to users, proportional to the number of tokens they held and the number of referrals they made. The BCC tokens were exchanged for the users’ Bitcoin, and the highly sophisticated and wildly successful trading bot would trade BTC for them and distribute profits as dividends. The value of the dividends offered was approximately 1% of the initial investment per day. In other words, that is approximately 3,780% per year in cumulative gain! The referral system was capitalized upon most heavily by many of the biggest crypto YouTube channels, including CryptoNick and Trevon James, both of whom are now under investigation by the Federal Bureau of Investigation. Shortly after the Bitconnect Token reached its all-time high, they received cease and desist orders from the security regulators of Texas and North Carolina, which caused the owners of the Bitconnect exchange to shut down operations, and the price to plummet.
Davorcoin: Davorcoin was a lending platform very similar to Bitconnect. And Davorcoin was farcically promoted by the same Trevon James crypto Youtuber who promoted Bitconnect, and is currently under investigation by the FBI for promoting Ponzi schemes. The Texas State Securities Board, in likening Davor to Bitconnect, stated that “DavorCoin is telling investors they can earn lucrative profits by investing in a lending program based on a new cryptocurrency known as davorcoin. Investors allegedly purchase davorcoin and then lend it to DavorCoin”. Davorcoin promptly plunged from an all-time high of $180 to very close to zero after a cease and desist order was made against them on the 2nd of February 2018. Useless Ethereum Token: Despite brazenly stating in the name of the project that the token has no use, the UET managed to raise $340,000 in its crowdsale, and saw a significant pump of over 300% on the HitBTC exchange in February of 2018. The scam was an obvious case of pump and dump, with the total trading volume for UET crashing back down to as low as $3 per day, after reaching as high as $350,000 per day during the pump.
Indications of Scam Projects
It is currently an unfortunate consequence of the decentralized nature of cryptocurrency, but there is a distinct lack of recourse for scammed investors. It is wise to become as well-acquainted with the various indicators of good and bad ICOs as you possibly can. In weighing the factors that will allow you to avoid expensive mistakes, ask yourself in whose favor are the terms of the ICO slanted, yours or the teams? To what extent are you actually likely to profit from this investment? Cryptocurrency is inherently a grey area, whether you are investing in it or not. Investing is another inherently grey area, no matter what the area or object of investing might be. Laws and regulations are not always able to keep up. Trying to define and prove what was or was not a scam is not likely to be as simple as the scammed investor would want it to be. A project can be set up in certain ways to avoid being technically classified or provable as a scam, but the unprepared investor can still be burnt or scammed just as badly. Now we look at more individual indicators that can help you form a valid impression whether or not an ICO or even a fully-fledged exchange-listed coin is a scam or a bona fide investment opportunity.
Common Signposts
Contrasting Scam & Legitimate Projects
Presale Bonus/Token Release If the ICO allots massive bonuses to team members, you may leave yourself open to getting dumped on by presale investors if you buy when the project tokens are listed on an exchange. Likewise, if the project has a short lock-up period for developers and founders, you run the risk of them selling as soon as the token is listed on a major exchange. The token release schedule for the founders of a worthwhile project should show long-term team commitment to that project. The Jibrel Network team tokens will be locked up for 5 years before release, and they had no early investor bonus in the main sale. Both of these factors instilled confidence in the JNT ICO investors, and the tokens were sold out weeks before the ICO was due to end. No Presale lock up If Presale investor tokens are not locked up at all for any period after listing, that could easily be a set up for an exit scam after the initial listing. No presale lockup for early investor tokens is a crystal clear warning, the project may be fatally rigged toward those in the inner circle, with little commitment to the long term health or success of that project.
Unsolicited Offers or Unasked for Additions to Groups Characters running scam projects will often add you to Telegram groups out of the blue or send you unsolicited emails with information about their project. Telegram is the most widely used messaging app in the cryptocurrency community and you should familiarize yourself with it to keep yourself in the loop for specific projects in which you invest as well as all kinds of other relevant crypto info. You can adjust the settings on the Telegram app to disallow anonymous additions to cryptocurrency projects if you find yourself bombarded with offers by scammers. Reputable projects at the ICO stage will spread by word of mouth, or by eloquent and meaningful articles posted on their Medium page. A project with serious potential does not need to actively seek participants for their ICO like that. They will often be able to fill their ICO hard cap in a matter of hours, or even just minutes!
Anonymous Team
Alarm bells, again, immediately, if the project has minimal online presence. The individual team members could be mere fabrications. The entire project could be a farce by utterly inexperienced characters. What if the project leaders are simply unaware of the importance of a strong social media profile? That in itself would be too strange to ignore. Top-level projects will have team members with experience in crypto and the LinkedIn accounts for those members will be easily accessible right there on the project website. You should be able to easily see and evaluate each individual’s experience in their field and ascertain what they bring to the project team. Bitconnect’s anonymous team should have been the only deterrent prospective investors needed to discourage them from putting money into that doomed project. Ethhorse, a current project with anonymous founders and operators should be steered clear of at all costs for the same reasons.
Community Atmosphere
The subreddits or Telegram groups of scam projects will often feature moderators that do not allow any kind of criticism in the group chat. If, in the process of your due diligence, you encounter didactic admins that only wish to silence your questioning of certain aspects of the whitepaper or mechanism of the tokenomics, you should be concerned. Similarly if you see a coherent critical reply attacked by many different users who refuse to engage the substance of the point being made, that may be a subreddit infested with bots. Projects that have nothing to hide will allow free debate in the chat. Ideally, they hope to develop a positive community that is itself an asset to the long-term success and overall strength of the project. Good projects do not need to automatically brand all criticism as Fear Uncertainty and Doubt (FUD).
Whitepaper
One common tactic of scammers is to produce a whitepaper that uses too many buzzwords, and deliberately obfuscates and overcomplicates the explanation of the problem and/or its solution. A good whitepaper clearly and concisely lays out the problem and answer, as well as provides compelling arguments why a Blockchain solution is preferable to the current solution. Another point of concern is a whitepaper that gives unrealistic time frames and goals. Bitconnect’s almost comically optimistic profit projections are a prime example of this, as are the 1,354% yearly gains promised by Plexcoin. Respectable projects will set out development timescales in terms of quarters or years, rather than offering immediate profit projections, which are simply a red flag.
Advisors/Connections in the Cryptoworld
The most prestigious projects will already have partnerships made before the ICO stage, and the worst ones, i.e. the scams, will not mention any such partnerships. Icon (ICX) for example was spawned from a South Korean project named The Loop, a collaboration between 3 Korean universities and the DAYLI Financial Group. They boasted an advisory panel consisting of the legendary investor Don Tapscott, Jehan Chu and crowdfunding expert Jason Best. On top of a solid team of advisors, good projects will also be visible at major Blockchain events such as the Consensus, and the World Blockchain Forum, etc. Scam projects will be unable to inspire this same level in confidence. As an investor, you should sense a certain presence and expect a certain feeling of trust that should guide you in your investments. After all, it is actually a people-to-people thing you are doing.
Key Stress points upon the Timeline to Identify Scam Projects Post Whitepaper Release The period in the immediate aftermath of the release of the whitepaper can also be decisive in establishing the validity of a project. How a team copes with the roadmap that they have laid out for themselves is key. Valuable insight into the operational efficiency and commitment to the project can be gleaned from the quality of and amount of code committed to GitHub. If you have any experience in computer programming you can see how clean and orderly the code is, which gives insight into the skill of the developers, and in turn the quality of project leaders’ decision-making in hiring team members. Scam projects will have little or no code committed to GitHub, or at best it will be copied and pasted from other projects just to cover their tracks. Start of ICO Sometimes, a scam project, or other project in which you would be better off not investing, will change the terms of the ICO just before the ICO starts. The Key (TKY) ICO doubled the price of tokens on the day before the ICO was due to take place, because the price of NEO had risen so drastically. Currently, the TKY token price is still only half of its ICO price. Initial investors are faced with the prospect of a 50% loss on their investment.
Key Stress points upon the Timeline to Identify Scam Projects
Exchange Listing
Some particularly greedy scammers will create a scam project with the intent of selling tokens in the ICO for BTC and ETH, and then pumping and dumping their share of the tokens immediately after listing. The team of fraudsters behind Monero Gold used this method after the crowdfunding of their useless ERC-20 token. After listing on CoinExchange.io, the team dumped their tokens until the exchange finally ceased trading. Although it is not uncommon for ICO tokens to sold after listing (just like can happen with shares of stock after an IPO), if the price does not stabilize and massive sell walls are continually placed, a scam is likely taking place and the token is being dumped.
Real World Example of Scam Customers
Fake Ethereum Twitter giveaway
You may have noticed Ethereum creator Vitalik Buterin’s twitter handle has been changed to Vitalik “Not giving away Eth” Buterin in recent months. This is because a group of devious scammers had created fake accounts with almost exact replicas of his profile (deviating by only one character). The fake accounts promised to deposit 1 whole ETH for every 0.1 ETH the potential sucker deposited into the wallet address provided by the scammer. These fake account “Ether giveaway” scam tweets were set up to be sent in just a matter of seconds after the real person tweeted, and usually always appear immediately after the tweet of the real public figure. Fake bot profiles then came into play, thanking the fake Vitalik, or fake Elon Musk, for holding up their end of the bargain and depositing the ETH as promised. One scammer, or group of scammers, managed to fill a wallet up with almost $20 thousand worth of ETH, which they transferred out, never to be seen or heard from again.
Effect of Scam Customers, Upon the Affected Parties
Of course, this is no fun for the targeted public figure either. They need to take steps to avoid being targeted again. This will mean changing their handle, their username, or making their accounts private. However, the injured party with whom we are most concerned is the unfortunate scammed social media user, who has no chance whatsoever of getting his or her funds back, ever. It is a harsh lesson to learn. But it is a fact of crypto reality. Nearly every one that trades crypto will at least be exposed to frauds or scams in one way or another. In this case, we think it is better to learn about scams by studying them, rather than learn from your own unfortunate and expensive experience. In the case of Mr. Buterin, these incidents were awful public relations for the Ethereum project. It had only been a few years since cryptocurrency as a whole was primarily associated with criminality and seedy transactions on the Darkweb. Any connection with unscrupulous behavior is best avoided at all costs. Negative associations could have been particularly damaging for Ethereum’s brand because the vast majority of ICO fraud is committed using the ERC-20 token as the template for the scam tokens.
Effect of Scam Customers on the Market
Any and all the scamming or fraudulent behavior in the cryptocurrency ecosystem is bound to have a negative impact on the speed at which mainstream uptake finally takes place. Cryptocurrencies, as an emerging asset class, will be painted in the worst possible light. Crypto is aiming to, and is in fact in the process of, causing great disruption in traditional centralized finance and business. Mainstream media organizations are also part of that traditional centralized economy. Press coverage will be damning. Something is happening here, but Mr. Jones doesn’t know what it is.
Legal Recourse for Scams
We clearly understand, there is a possibility of being scammed. We know the scams are happening. The SEC has made some arrests and actually charged people for operating fraudulent ICOs. But it is a struggle to deal with the flood of ICOs coming from anywhere at any time. The SEC filed charges against two founders of a purported financial services startup for orchestrating a fraudulent ICO that raised more than $32million from thousands of investors. As you know from the ICOs we have covered so far, the lack of regulation allows for direct contact and dealing between the entrepreneurs, business owners and potential investors. While we believe this is a blessing according to the founding principles of Bitcoin and other alternate Cryptocurrencies, because it frees us from traditional roadblocks, middle-men, and all kinds of time-consuming procedures; it also leaves investors in a place where there is often little to no hope of ever recovering funds lost in fraudulent schemes.
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Trading Cryptocurrency Markets

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Major Exchanges
In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem.
Function and History
Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe.
The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people.
Popular Exchanges
Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence.
Bitfinex
Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT).
Binance
Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours.
Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles.
Have you ever thought about what are the types of Crypto exchanges?
  1. Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
  2. Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
  3. Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet.
Regulatory Environment and Evolution
Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold.
The United States of America
A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system.
The European Union
The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology.
Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto.
Behavior of Cryptocurrency Investors by Demographic
Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions.
The Cryptocurrency Market Cycle
Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins.
Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years.
The Influence of Age upon Trading
Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.”
Geographic Influence upon Trading
One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside.
2013 Bull run vs 2017 Bull run price Analysis
In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely.
Fraud & Immoral Activity in the Private Market
Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak.
What are the Exchange Hacks?
The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts.
Hardware Wallet Scam Case Study
In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified).
Hardware Wallet Scam Case Study Social Media Fraud
Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed.
Market Manipulation
It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase.
Examples of ICO Fraudulent Company Behavior
In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”.
Signposts of Fraudulent Actors
The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper.
Signposts of Fraudulent Actors §2
No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out.
Methods to Avoid falling Victim
Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.”
Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not?
If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper.
Is this too good to be true?
All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH.
Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take:
If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees.
Selling Cryptocurrencies
Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time.
Methods of Sale
Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons.
The influence and value of your Trade
There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project.
Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market.
Market Behavior in Different Time Periods
The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order.
Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens.
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LTO NETWORK- A MULTI-LAYER APPROACH TOWARDS BLOKCHAIN

LTO NETWORK- A MULTI-LAYER APPROACH TOWARDS BLOKCHAIN

LTO (Liquid Task Orchestration) Network is a fascinating new approach to hybrid blockchain for decentralized workflows. I’ll dive deeper into that in a minute but to take a graphic from one of their articles on "https://medium.com/ltonetwork/lto-network-the-business-pitch-39564e15bb94", LTO has created a nice chart to show what different blockchains exist and some examples of the coins/tokens running on them.

https://preview.redd.it/kbvnoy0fkld21.png?width=768&format=png&auto=webp&s=6ab40fc7c20eaca548d9464b1ae641fea3accb29
As you can see, LTO has positioned itself in a unique area of the blockchain chart shown above. It falls under a private-permissionless layer where individual nodes (computers) will connect to one another rather than an entire network (like bitcoin) in order to maintain same-state records of a work-flow process. To put it simply, they have developed a way for teams to work on their projects in a congruent and seamlessly-updated system, especially when it comes to workflow layout. Since a picture is worth a thousand words, this will save me a lot of typing; here is what a simple workflow looks like within an organization:

https://preview.redd.it/txjsp47ikld21.png?width=768&format=png&auto=webp&s=5833cbe0d80945dea896cd1ce1f889f61445a263
I want to highlight the workflow above and turn it into a use-case built on the blockchain, but not just any blockchain, LTO’s public blockchain (which effectively acts as the “anchor”) and utilize a private blockchain within the model as I want the information above to be specific and accessible to my organization (hypothetically speaking). We are going to work with the following assumptions:
  1. The workflow chart above is already in place
  2. I want to implement this workflow process on the LTO blockchain
  3. I want to make this information private so that only members of my organization can see it
With the three pieces of information provided above, we can see the current state of the project and where we want to take it… to a private blockchain on the LTO network. This is done by creating what LTO has termed “Ad-hoc miniature private chains”, instead of explaining that one ten times over here is a great infographic from the same "https://medium.com/ltonetwork/lto-network-the-business-pitch-39564e15bb94" article referenced above:

https://preview.redd.it/muztm3ikkld21.png?width=1024&format=png&auto=webp&s=53adb05cf0237e2a0782893ebbc88d9649393ee3
Let us break down this image, on the left we see the public LTO blockchain or network and on the right are the individual nodes that make up the private blockchain for my organization. Each node contains a piece of information but no single node has ALL of the information, as indicated by the red lines flowing in and out of the three nodes in the image above. This is an important part of the validation process and is done internally on the private blockchain then sent out to the LTO public blockchain to become “anchored” which means that the workflow process will be facilitated and backed up on the main LTO network. This is one example of how LTO’s technology can be used in a business setting.
Setting a larger stage, let us take a look at governments and global organizations and how LTO fits into the picture. One thing most governments have is many organizations that are collecting information individually and not sharing it efficiently or completely causing miscommunication/misinterpretation. The question was asked, “How do we collaborate on the but keep the data ourselves?” The answer comes in two parts by LTO and is not-so-simple, but brilliant!
  1. Horizontal Scalability
    1. To quote part of one of their "https://www.youtube.com/watch?v=gmICZHtLt00" videos “Nodes can simultaneously hold and handle numerous Live Contracts. Since every Live Contract forms a private chain, nodes can spin up more VMs to handle bigger loads”
  2. Data privacy and GDPR
  3. “Only the nodes of a particular private process have access to a particular private chain, if required by law, the entire workflow with all related data can be erased.”
The LTO team is extremely robust and speaking specifically about the CEO, Rick Schmitz, this is not his first time starting a company. In fact, he created Firm24 in the Netherlands which does about 10% of the legal work in the business aspect of the law. Firm24 was created from the needs of individuals and companies and created a revenue-stream before without using blockchain. Rick is now able to take that experience and apply his entrepreneurial successes (and corporate ones) to the forefront of the blockchain industry thanks to an incredibly capable team of experts. They are not shy about who they are and what they have done, all team members have LinkedIn profiles and some even have Github links, a great sign of confidence in a project is being proud of your past and demonstrating a track record of success, something that LTO has done quite well.
LTO is born out of a history of success starting in 2014 when "https://lto.network/index.html#meet-the-team" was created, along with Firm24. The ball kept rolling from there, with a white label release of Legalthings in 2015 and a software buildout of Firm24 in 2016 to include automation of corporation procedures. In September 2016 the Legalthings team began exploring blockchain use-cases and seeing how they could apply it to the work they were doing (digital signing and verification of real estate contracts, amongst other documents). In May 2017 Proof of Concept was achieved on the Ethereum platform using a Smart Contract to self-enforce agreements between parties. However, they still had not solved the problem of legally binding contracts as there are inherent constraints in smart contracts (take a look at point 1a where “Live Contracts” are mentioned). These Live Contracts were born out of a combination of "https://en.wikipedia.org/wiki/Finite-state_machine "Smart Contracts. This is no small feet and in September 2017, They took first prize in a hackathon sponsored and organized by the Dutch Ministry of Justice and Security, not surprisingly, by demonstrating that a whole legal procedure can be digitized as an FSM and stored on the blockchain. This prestigious award came with the task to put Dutch legislative procedures on the blockchain and in February of 2018 after a successful seed round, they presented their Proof of Concept following up from the hackathon win.
Needless to say, LTO has been a smashing success in both government and corporate environments. They have formed some incredible partnerships, attained GDPR compliance, and hit every goal on their roadmap throughout 2018
In 2019 after a crowdsale conditto fine we expect a rosy future.
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Competitive Analysis: Top DEXs Under The Microscope

Competitive Analysis: Top DEXs Under The Microscope
As we are on the verge of our mainnet release (Aug 20, 2018 — don’t miss!), we have decided to take a quick look at the leaders of the decentralized cryptocurrency exchange market. We have no intention of establishing a rating, so the positions taken in this review do not signify that one platform is better or worse than the other. Also, if you would like to have a deeper engagement in DEX thematics, check our previous article.
https://preview.redd.it/eadi08ak4cf11.png?width=800&format=png&auto=webp&s=ea2a954efab4c12f87a255b20f592cb8ca3b967b

The IDEX: EtherDelta Smart Little Brother

It would be no exaggeration to say that today the IDEX is the most well-known decentralized cryptocurrency exchange. The IDEX is a product of Aurora DAO, part of the decentralized financial system, which consists of the IDEX exchange, the Boreal stable currency, the Snowglobe decentralized exchange protocol, and Decentralized Capital, a digital banking solution for the cryptocurrency community. Launched in January 2018, it now brandishes a $1,7M daily amount of trade at the time of this article’s publication. The IDEX works on Ethereum network and only supports ERC-20 tokens. The trading volume of the site is mostly dominated by the tokens fresh from their ICOs. Among the main advantages are a high level of security, an elaborate interface for experienced traders and a high-level of technology used for exchanges. As for security, the IDEX supports both Metamask and Ledger Nano hardware wallets acting as a smart contract, a trading engine, and a transaction processing arbiter at the same time. Leading traders can take advantage of the TradingView trading charts and their useful features. Being decentralized, the IDEX delivers a full range of centralized and hybrid services. Among the disadvantages is an absence of Bitcoin and fiat currencies, low liquidity (the scourge of all DEXs), and a beginner unfriendly interface.
IDEX is on the threshold of entering the top-100 exchanges trading the no-name-coins.

Waves DEX: ‘Blockchain For The People’

Just like IDEX, the Waves DEX is part of a complex financial system built by the Waves Foundation. Launched in 2016, it was initially designed to combine the best features of centralized and decentralized exchanges. The Waves DEX is able of executing exchanges between its own WAVES token and all the tokens built on the Waves platform, so it can be called a ‘proxy-token’ DEX like its prototype, the NXT. It is important to mention that the easiest way to issue your own token is by using Waves: you just need to fill in a form and your token is ready to be launched on the Waves platform. By the way, this DEX has a lot of strong suits, such as a user-friendly interface, its own secure and easy-to-use wallet, some exotic features like direct trades from Visa and MasterCard (only 20 to 300 USD), and equivalents for fiat currencies (wUSD, wJPY, even Turkish Lira). This DEX is well-known due to its low and fixed transaction fee (some 0.01 USD for a transaction in WAVES equivalent). With Waves, there is a little to judge: maybe the only point of note is a short list of trading pairs, as well as strong binding to the WAVES token.

EtherDelta: Still Holds Its Place

During the last year, the EtherDelta trading platform was primarily mentioned in negative headlines. In December 2017, the attackers gained access to the DNS-server of EtherDelta and stole more than 300 ETH, while leaving the smart-contract of the exchange untouched. In January 2018, a group of unknown individuals organized the supposedly fraudulent ICO of EtherDelta. Some tokens were not sent to their purchasers. This crowdsale raised $69M with no information being made available about the exchange’s owners and beneficiaries. Finally, in February 2018, the fork of EtherDelta, the ForkDelta took place. The administration of the latter persuaded users that they still work on the EtherDelta smart-contract and send transaction fees to EtherDelta.
Despite this series of gossips, EtherDelta is still afloat. Maybe, this is so due to the two points: the ultimate functional of trading with Ethereum (250+ trading pairs) and a simple means of listing ERC-20 tokens on it. EtherDelta became the first platform our SWAP tokens are traded on. Moreover, this platform is familiar to the generation of traders who are using it from the summer of 2016. The weaknesses of Etherdelta are the stuff of legend: a confusing interface, very slow operations, ERC-20 as the only type of token to trade, relatively high transactional fees etc. Nevertheless, Swap.Onlinesupposes it’s a bit early to call for the funeral of EtherDelta.
It is not so easy to deal with the EtherDelta interfacе

Bitsquare: Not Like Anyone Else

Bitsquare was founded in the distant year 2014 with live beta trades launched in April 2016. Its CEO Manfred Carrer planned to maintain the initial idea of the Bitcoin network in decentralized systems. The Bitsquare team intentionally refrained from an ICO in 2016, disseminating the BSQ tokens among the 200 to 400 first contributors of the project. Bitsquare still has some attractive features: a lot of fiat currencies available, ridiculously user-friendly interface, clear and beautiful philosophy, etc. By the way, there are some remarkable weak points, which have sent Bitsquare (or Bisq) to the middle of the second hundred of Coinmarketcap’s top-list. First of all, to trade via the Bisq, you need to have the application installed. Only then can one see the poor list of trading pairs, the complicated system of trading fees, and the small limits of withdrawal through traditional banking systems. For most bank-based payment methods like SEPA or Zelle, the trade limit is 0.25 BTC per trade. For the recently added payment methods like Venmo, Cash App, Revolut, Popmoney and MoneyBeam, the trade limit is 0.16 BTC. The trade limit in the first month is 25% of the full trade limit. As such, the Bitsquare seems to be the most controversial product in our review.

Stellar DEX: All in One

The Stellar Network, well-known for the popular cryptocurrency XLM (lumens), presented its own DEX where only trades in XLM are supported. Users can gain access to the trading features via the Stellar Term client (serving as a wallet at the same time). Every user creates a key pair, which consists of a public key used to identify the account and for receiving funds, and a secret key used for accessing the funds. The Stellar DEX delivers the services of the exchange with fiat money, the USD and EUR, as well as fiat remittances. For now, there are 15 live trading pairs with XLM. More than half of the daily trade amount is made through the XLM/CNY and XLM/EUR pairs. To publish the offer, one needs to deposit 20 XLM on the account. Among Stellar DEX’s more interesting features is the possibility of cross-asset trading. The cross-asset payment feature allows the user to look for the best path that offers the best rate of conversion for their assets at any given time. This involves the user scrolling through the orders in the current order books to find meaningful conversations that provide the best rate. The Stellar DEX also plans to use the Lightning Network, a second-layer scalability solution for the Bitcoin Network. The main limitation to project development is the fact that it is strictly pegged to the XLM cryptocurrency.

Changelly: Cryptocurrency Moneychanger

As Swap.Online is not only a DEX, but also an OTC-marketplace delivering the services of accepting cryptos to the startups via the Swap Button Widget, we need to have a look at centralized services as well. One of them, Changelly, seems to be one of the most convenient and rapid ways of exchanging your cryptos into fiat money and your altcoins into other altcoins. You need to submit your e-mail to start the trade. The average time of one trade is some 10 to 30 mins. By the way, there is one massive caveat you should take into account when sending your cryptos to Changelly. The transaction fee for fiat/crypto exchange can vary in the dozens of percentage points. It depends on a series of factors including the network workload, trading pair popularity etc. Finally, the owners of Changelly are still anonymous. Nevertheless, it is one of the fastest and safest ways of exchanging your cryptos.

In Place Of An Epilogue: Atomic Swap DEXs Coming Soon

To finish this review, we need to say a few word about Atomic Swaps DEXs. Among the most anticipated are Altcoin.io and BarterDEX by Komodo. Both of them are still under development: the release of the Altcoin.io mainnet is scheduled for Q4, 2018, when the BarterDEX reaches the Beta phase and can be downloaded as a desktop application. The latter is of particular interest, as the Komodo Platform is a pioneer of Atomic Swap technology itself. Both teams have announced safe, decentralized, user-friendly products based on state-of-the-art technology.
https://preview.redd.it/etn8fpum4cf11.png?width=800&format=png&auto=webp&s=52007df41f9c54badf2513ce39b6df43e6ff857f
Coinmarketcap is eyeballing the Komodo’s Barterdex even before its release.

What’s the tally?

Swap.Online is in good company. Having so many worthy adversaries, we will build an interesting and revolutionary product

Swap.Online Essential Links

Website: https://testnet.swap.online GitHub: https://github.com/swaponline Email: [email protected] Telegram: https://t.me/swaponline Facebook: https://www.facebook.com/Swaponline Twitter: https://twitter.com/SwapOnlineTeam Wiki: https://wiki.swap.online/ Bitcointalk: https://bitcointalk.org/index.php?topic=4636633
submitted by noxonsu to SwapOnline [link] [comments]

Falling cryptoworld: Cryptolab's OPINION

Falling cryptoworld: Cryptolab's OPINION
Yesterday, the total market capitalization collapsed for almost 14%. Now all everyone is concerned only with two questions: what happened and when will it end?
While the best minds of the cryptoworld still keep silence, Cryptolaboratory is trying to find answers. Let's start with the reasons. Ethereum and Bitcoin Cash could be the main catalysts.
Ethereum is being failed numerous ICOs who have chosen this blockchain for their start. ICOs sell Ethereum collected during the crowdsale, thereby causing the price of ETH is rolling slowly below $200. It has already led to the fact that this cryptocurrency gave the XRP second place in the CoinMarketCap capitalization rating. We think it is not the end.
Bitcoin Cash today is waiting for a hard fork, around which a lot of noise is raised. Most likely, ordinary investors throw off this currency, do not want to risk. Just imagine, two parts of cryptocommunity are trying to divide the fourth in the world (in terms of capitalization) cryptocurrency into two, and this is not a delight for any of the parties. It is not surprising that the sale has begun.
One can also note the long wait for positive decisions from SEC on Bitcoin-ETF, the absence of large investors in the market and other artificial delay of the cryptocurrency revolution. As for Bitcoin (BTC) directly, now BTC/USDT pair took about 60% of all Bitcoin trade. This means that investors are transferring their funds to the stablecoins to avoid additional losses.
Now, regarding the question of when the decrease will stop. We are afraid that we will disappoint, but nobody can not say that reliably. Looking at Bitcoin weekly chart, we can only assume that if it continues to fall, it will meet the nearest resistance near $ 5,000. We hope that it will unfold earlier.
https://preview.redd.it/gjadtw0u2gy11.png?width=623&format=png&auto=webp&s=c54a575d5a370041bf85d643a18d9709e3c1691d
Cryptolaboratory's Opinion. We don't claim the truth, but the truth is close.
Website Cryptolaboratory
Cryptolaboratory Facebook
Cryptolaboratory Twitter

|Cryptolaboratory team|
submitted by Crypto-Lab to ICOAnalysis [link] [comments]

Falling cryptoworld: Cryptolab OPINION

Falling cryptoworld: Cryptolab OPINION
Yesterday, the total market capitalization collapsed for almost 14%. Now all everyone is concerned only with two questions: what happened and when will it end?
While the best minds of the cryptoworld still keep silence, Cryptolaboratory is trying to find answers. Let's start with the reasons. Ethereum and Bitcoin Cash could be the main catalysts.
Ethereum is being failed numerous ICOs who have chosen this blockchain for their start. ICOs sell Ethereum collected during the crowdsale, thereby causing the price of ETH is rolling slowly below $200. It has already led to the fact that this cryptocurrency gave the XRP second place in the CoinMarketCap capitalization rating. We think it is not the end.
Bitcoin Cash today is waiting for a hard fork, around which a lot of noise is raised. Most likely, ordinary investors throw off this currency, do not want to risk. Just imagine, two parts of cryptocommunity are trying to divide the fourth in the world (in terms of capitalization) cryptocurrency into two, and this is not a delight for any of the parties. It is not surprising that the sale has begun.
One can also note the long wait for positive decisions from SEC on Bitcoin-ETF, the absence of large investors in the market and other artificial delay of the cryptocurrency revolution. As for Bitcoin (BTC) directly, now BTC/USDT pair took about 60% of all Bitcoin trade. This means that investors are transferring their funds to the stablecoins to avoid additional losses.
Now, regarding the question of when the decrease will stop. We are afraid that we will disappoint, but nobody can not say that reliably. Looking at Bitcoin weekly chart, we can only assume that if it continues to fall, it will meet the nearest resistance near $ 5,000. We hope that it will unfold earlier.
https://preview.redd.it/diq2iek5wfy11.png?width=623&format=png&auto=webp&s=9b7eb7605b961ebdbe3d4586d1437d246a5d73e1
Cryptolaboratory Opinion. We don't claim the truth, but the truth is close.
Website Cryptolaboratory
Cryptolaboratory Facebook
Cryptolaboratory Twitter
Cryptolaboratory Telegram
Cryptolaboratory Instagram
Cryptolaboratory Medium
submitted by Crypto-Lab to Cryptolaboratory [link] [comments]

Falling cryptoworld: Cryptolab's OPINION

Falling cryptoworld: Cryptolab's OPINION
Yesterday, the total market capitalization collapsed for almost 14%. Now all everyone is concerned only with two questions: what happened and when will it end?
While the best minds of the cryptoworld still keep silence, Cryptolaboratory is trying to find answers. Let's start with the reasons. Ethereum and Bitcoin Cash could be the main catalysts.
Ethereum is being failed numerous ICOs who have chosen this blockchain for their start. ICOs sell Ethereum collected during the crowdsale, thereby causing the price of ETH is rolling slowly below $200. It has already led to the fact that this cryptocurrency gave the XRP second place in the CoinMarketCap capitalization rating. We think it is not the end.
Bitcoin Cash today is waiting for a hard fork, around which a lot of noise is raised. Most likely, ordinary investors throw off this currency, do not want to risk. Just imagine, two parts of cryptocommunity are trying to divide the fourth in the world (in terms of capitalization) cryptocurrency into two, and this is not a delight for any of the parties. It is not surprising that the sale has begun.
One can also note the long wait for positive decisions from SEC on Bitcoin-ETF, the absence of large investors in the market and other artificial delay of the cryptocurrency revolution. As for Bitcoin (BTC) directly, now BTC/USDT pair took about 60% of all Bitcoin trade. This means that investors are transferring their funds to the stablecoins to avoid additional losses.
Now, regarding the question of when the decrease will stop. We are afraid that we will disappoint, but nobody can not say that reliably. Looking at Bitcoin weekly chart, we can only assume that if it continues to fall, it will meet the nearest resistance near $ 5,000. We hope that it will unfold earlier.
https://preview.redd.it/cigufd5k3gy11.png?width=623&format=png&auto=webp&s=75bf5d12ec69ef8006c9172fcff716abf740dddd
Cryptolaboratory's Opinion. We don't claim the truth, but the truth is close.
Website Cryptolaboratory
Cryptolaboratory Facebook
Cryptolaboratory Twitter

|Cryptolaboratory team|
submitted by Crypto-Lab to ico [link] [comments]

Evencoin self-mining smart-contract

Unlike Bitcoin where energy & infrastructure is required to mining coin EvenCoin is a self-mining currency in conjunction to even numbers of Ethereum block.Hard core genesis collected from top 4000 crowd sale contributors. All genesis gets equal mined coins over a time period. of 15 years. EvenCoin can be accessed using any of Ethereum wallets including EvenCoin own Web based & Mobile wallets.evencoin.io as well evenchain.io can be used to transact worldwide with transaction cost as low as 0.03$ with average transaction time of just 30 seconds! much better than Bitcoin.
As stated earlier EvenCoin being self-mining smart contract does not require any mining hardware, the mining runs parallel to Ethereum even numbers of blocks for over 15 years by 4000 pre- selected miners only.
From all contributors towards crowdsale only 4000 top contributors / coin holders would be considered as hard core genesis and would receive mining share of 85% remaining supply mined at each Ethereum even number of block as for 15 years, as show in below chart, so mining of EvenCoin never depreciates.
Each miner gets rewards per even number of Ethereum block to his ether address immediately and this is how the best ever smart self-mining works.
EvenCoin mining makes complete fair distribution of mining rewards towards all genesis accounts.
submitted by skm742 to CryptoCurrencyTrading [link] [comments]

Sirin Labs FAQ

What features make FINNEY™ "a blockchain phone"?
FINNEY™ smart devices will create an independent blockchain network using a distributed ledger consensus mechanism. This enables fast payments between the network peers without the need for mining (fee-less). FINNEY™ devices will feature a cold storage crypto wallet compatible with the most common cryptocurrencies. The UI/UX will be developed to solve the technical pains of exercising crypto transactions by providing a platform for friendly and secure payments.
How will you decide what the total supply of SRN tokens will be? Will the supply increase over time?
The total supply of SRN tokens will be fixed relative to the number of tokens distributed in the uncapped crowdsale. The number of tokens distributed in the crowdsale will equal 40% of the total supply with the remaining 60% allocated as described in the crowdsale website and whitepaper.
Will I be able to trade the SRN token through regular cryptocurrency exchanges?
Yes. SRN is an ERC20 token, which can be bought and sold just like Bitcoin, Ethereum etc. We are in advanced conversations with a number of the largest cryptocurrency exchanges, we will provide an update shortly.
Where is Sirin Labs located?
SIRIN LABS AG is a Swiss Company with headquarters located in Schaffhausen, Switzerland. In addition, we have offices and R&D centers around the world (e.g. London and Tel Aviv).
Was your previous product a success?
SOLARIN was and still is a success. SOLARIN continues to sell well worldwide and is leading the charts in Harrods luxury technology department. SOLARIN and its accessories will be available for sale using the SRN token (with a 10% discount off the list price).
How can I be sure Sirin Labs doesn't get hacked, like in recent ICO events?
We are the developers of SOLARIN, the most secure smartphone in the world. At Sirin Labs we take pride in our significant expertise in cyber security. Nonetheless, Sirin Labs is being audited by several external penetration testing companies to ensure ultimate security.
Will the FINNEY™ be launched globally? Or through retail?
Sirin Labs’ products will be shipped globally.
What Android version will run on FINNEY™ ?
Our products will run the most recent version of Android including Sirin Labs’ SIRIN OS, enabling secure blockchain features.
How can a smartphone have a cold wallet?
Just like Solarin, Finney™ will feature a physical toggle (switch) that will immediately turn off all unencrypted communications. Thanks to this mechanism the crypto wallet inside Finney™ will effectively be offline unless intentionally activated, functioning as a “cold wallet”.
How long will it take for the tokens to have liquidity?
SRN token will be liquid directly after the crowdsale. In fact, it will have unlimited liquidity as the SRN token is compatible with the Bancor Protocol.
Will I be able to buy Sirin Labs’ products only with SRN?
Yes. Sirin Labs products are made to fully explore the advantages of blockchain. By encouraging the SRN economy, we are creating a homogeneous eco-system for both devices and services.
Are there any smart contract restrictions, such as gas price etc.?
Yes, there are restrictions. Once the crowdsale terms are published, we will also publish the gas and gwei recommendations.
Is there a minimum investment required to join the crowdsale?
Sirin Labs’ contributors will be able to purchase any amount of tokens during the crowdsale.
What makes Sirin Labs more attractive than other blockchain projects out there?
Sirin Labs’ team has a successful track record of delivering high quality consumer electronics products. Our product proposition is the future of consumer electronics, prioritising security and compatibility with the crypto-economy. The SRN token has various use cases within the Sirin Labs’ ecosystem which gives it a significant value. Indeed, we would encourage contributors to run their own checks and make an independent judgment.
Developing a smartphone is a big deal, has Sirin Labs done this before?
Yes! You are welcome to check out www.solarin.com to see Sirin Labs’ first smartphone, SOLRIN, the world’s most ultra-secure smartphone.
I am an American citizen; can I contribute to the crowdsale?
Yes, you can! We’re thrilled to announce that after extensive legal consultations, we are able to say that US investors can participate in the crowdsale. The SIRIN LABS token (SRN) is not considered a security while it can be utilized to purchase SIRIN LABS devices (such as SOLARIN, an ultra-secure mobile phone) and services right after the crowdsale event, including pre-orders of the FINNEY™ smartphone with a significant discount.
How to contribute to the Crowdsale?
A step-by-step user guide will be added to the SIRIN LABS website before the Crowdsale begins. Please follow the instructions to ensure safe contributions.
I have contributed the crowdsale, but I cannot see my SRN balance in my wallet. What should I do?
You can see your SRN balance by going to the following URL Wait a few seconds for the “Read Smart Contract” tab to populate and then scroll down until you see “5. > balanceOf “. In the field that follows, enter your wallet public address and click on “Query”
How many SRN have been generated so far?
As of Sun Dec 24 2017 00:48:22 GMT-0600 (Central Standard Time)
214,320,169 SRNs have been generated and distributed to crowdsale contributors, and represents 40% of the total supply. 321,480,254 SRNs which represent the remaining 60%, will be generated and allocated to the SIRIN LABS reserve. Those tokens are dedicated to our strategic plans related to the creation of the products, services and the entire SIRIN LABS ecosystem, as specified in the whitepaper and crowdsale Terms and Conditions. Please note! All values mentioned above are not final and constantly changing, as Token sale is still in progress…
What is the rate of exchange between ETH and USD used to calculate the total dollars contributed?
We use the exchange rate from CoinMarketCap, and the value is refreshed every 15 seconds.
submitted by MeSewCorny to SirinLabs [link] [comments]

Reasons why I'm holding EXP.

If you’re new to Expanse and looking for an interesting small cap coin to hold, then this post might be of interest. If you're looking to buy and sell coins quickly, then this probably isn’t for you.
I've recently started holding Expanse and wanted to share with the community some of my research and some of the reasons why I like the exciting project. (disclaimer: not financial advise, please read the whitepapers and DYOR).
— Expanse team are soon to launch TokenLab (pre-sale is in 10 days). TokenLab will essentially offer ICOs as a service. So if your business has an idea for a token ICO, the team will handle all legal, technical, fundraising etc at tokenlab.io, which could be huge.
The team already has some exciting partners on-board: CHCK-N (CHECK-IN BAR) - http://www.chck-n.com/ JAXX - https://jaxx.io/ GAMEBOARD - http://gameboard.site/ HONGICO - http://www.hongico.com/portal.php CENTURYLINK - http://www.centurylink.com/ MICROSOFT AZURE - https://azure.microsoft.com/en-us/blog/azure-blockchain-update-7/ MICROSOFT BIZSPARK PLUS - https://www.microsoft.com/bizspark/startup/profile.aspx?startup=693057 CHANGELLY - https://changelly.com/exchange/BTC/EXP/1?ref_id=expanse CHANKURA - http://chankura.com/ COINOMI - https://coinomi.com
The team, vision, tech and the community are all great. EXP launched 9/14/2015 so is still a relatively young business but has very exciting prospects. It’s a risky project, but I like to have some outsiders as a portion of my portfolio. Don’t just chase coins. Read the Expanse and TokenLAB whitepapers and if you believe in the projects longevity then consider getting into it.
submitted by cryptoTKL to ExpanseOfficial [link] [comments]

#liqnet

LIQNET A CRYPTOCURRENCY EXCHANGE WITH THE UNIQUE LIQUIDITY POOLING TECHNOLOGY
LIQNET SPECIFICS
THE LEN MECHANISM (LIQUIDITY EXCHANGE NETWORK) LEN (Liquidity Exchange Network) is what makes our exchange unique. This mechanism allows collecting and aggregating buy/sell orders through APIs of 1,2...n exchanges located anywhere in the world and forming a unified order book.LIQNET is a cryptocurrency exchange that uses a unique liquidity gathering mechanism. Find out how it works today in our review.What Is LIQNET?
LIQNET, found online at LIQNET.com, gathers liquidity from other exchanges and allows traders to access this liquidity through a single dashboard. You can take advantage of arbitrage opportunities between exchanges. Or, you can simply use LIQNET to access more liquidity.
The system revolves around the united limit order book, or LOB. You access this order book through the professional LIQNET interface. LIQNET was announced on April 24, 2018. The company is expecting to launch a token sale in May or June 2018.
How Does LIQNET Work?
LIQNET revolves around its limit order book, or LOB, and its LEN mechanism. The Liquidity Exchange Network, or LEN, mechanism prevents liquidity fragmentation by pooling bids and orders from different exchanges. Instead of accessing liquidity from a single cryptocurrency exchange, you can access liquidity from multiple exchanges using the same professional LIQNET dashboard. The main benefit of this higher liquidity is that traders can enjoy a lower bid/ask spread. LEN collects and pools orders from exchange customers like you. Then, it connects those orders with orders from other platforms, creating a single depth of market panel. Orders are collected and then made available for trading to all LIQNET exchange customers.
Using the public APIs of cryptocurrency exchanges, LEN polls them for purchase and sale bids, forming a single depth of market panel for its customers and allowing traders to find the best prices at minimal spread.
You can access LIQNET through your desktop browser or a mobile app.
LIQNET Features & Benefits
LIQNET emphasizes all of the following features and benefits:
No Slippage: High liquidity allows users to reduce or fully eliminate the costs of slippage. Expenses Reduction: The higher the market liquidity is, the smaller the bid/ask spread will be, which thereby lowers the cost of trading.
Trust: LIQNET’s liquidity “reflects the presence of a mass of people whose actions are much easier to predict than the actions of a single person,” explains the official website, which means that a single entity can’t dominate the trading market. Decentralization: LIQNET claims to be built on a decentralized system because their physical hardware is located in two different data centers, including centers in France and Canada. This isn’t what we typically mean by “decentralization”, although we understand what LIQNET is getting at.
Security: LIQNET holds customers’ funds in multiple locations, including hot wallets, multi-signature wallets, and cryptocurrency exchanges. This reduces the risk of theft. Multiple Trading Options: LIQNET supports direct trading from the financial chart and scalping trades (including post limit and stop orders right from the order book). Multiple Order Types: LIQNET supports stop order trades, stop limit trades, TP & SL trades, trailing stop trades, Iceberg, IFD, OCO, IFDOCO, valid till day/time trades, AON, IOC, and FOK trades.
Financial Charts: LIQNET provides a suite of analysis tools. Users can also customize their dashboard with 100+ different trading indicators. Multiple Currency Pairs: Right now, LIQNET lists just four cryptocurrency pairs, including LTC/BTC, ETH/BTC, BCH/BTC, and PPC/BTC. However, they allow users to deposit more currencies, including bitcoin, Litecoin, USD, Ethereum, Bitcoin Cash, DASH, and Peercoin (PPC).
LIQNET Fees A number of cryptocurrency exchanges aggregate liquidity from across different exchanges. So what makes LIQNET special? What kind of fees can you expect to pay? Here are some of the notable fees as listed on the LIQNET fees page: Trading Fees: 0.2% taker fee, 0.1% maker fee Deposit Fees: 0 (0% deposit fees on all deposit options, including bitcoin, Litecoin, USD, Ethereum, Bitcoin Cash, DASH, and Peercoin). Withdrawal Fees: 0.0001 BTC, 0.01 LTC, 0.01 USD, 0.01 ETH, 0.01 BCH, 0.01 DASH, and 0.01 PPC.
The LIQNET ICO LIQNET is expecting to launch a crowdsale in May / June 2018. That crowdsale will consist of a closed pre-sale and an open ICO. Further details of the token sale have not yet been announced. LIQNET has partnered with Como Capital to launch their ICO. It’s unclear how LIQNET tokens will work. However, tokens launched by other cryptocurrency exchanges typically provide a discount on trading fees. You might only pay 0.1% or 0.5% trading fees when paying with LIQNET’s tokens, for example.Who’s Behind LIQNET? LIQNET was created by a team of finance, law, and technology professionals with a proven track record in traditional investments and forex trading.
Key members of the team include Roman Shirokov (CEO), Evgeny Tarasenko (CTO), and Vyacheslav Kasatkin.
LIQNET was incorporated in 2015. The company is registered to an address in Singapore (10 Maxwell Road, Singapore).
LIQNET Conclusion LIQNET is a cryptocurrency exchange that aggregates liquidity from a number of different exchanges across the internet. The goal is to reduce the bid/ask spread while offering users the highest liquidity across multiple order types and markets. Right now, LIQNET is in the early stages of launch. The exchange is not yet available online, although a desktop and mobile app are preparing to launch in the near future.
submitted by Sl1mXgod to u/Sl1mXgod [link] [comments]

INCREDIBLE BITCOIN CHART SHOWING A HUGE MOVE AND THIS $1,000,000,000 WHALE IS GETTING READY!!! Bitcoin Chart Technical Analysis for 07-17-2020 WARNING TO ALL BITCOIN BEARS!!!!!!! THIS CHART WILL BLOW YOUR MIND!!!! INSANE!! BITCOIN CHART MIGHT GET REKT?!! Crypto Analysis TA Today & BTC Cryptocurrency Price News Daily Crypto Update - Babb Crowdsale, Bitcoin Drops, 3 To 6 Strategy

Crypterium (CRPT) is a cryptocurrency token built on top of Ethereum platform, launched in November 2017. Crypterium (CRPT) Price for today is $0.2915651, for the last 24-hours 129,831 CRPT's were exchanged with a trade volume of $37,854.It's currently traded on 4 exchange(s) and has 6 active market(s), the top two exchange pairs are bitcoin & ethereum. CrowdSale Network - US Dollar Chart (CSNP/USD) Conversion rate for CrowdSale Network to USD for today is $0.06826754. It has a current circulating supply of 0 coins and a total volume exchanged of ? Donate Bitcoin. Donation Address. Bitcoin Exchange Guide is a hyperactive hybrid of heavy-handed cryptocurrency content curation creators from christened community contributors who focus on delivering today's bitcoin news, cryptoasset user guides and latest blockchain updates. SwissBorg (CHSB) is a cryptocurrency token built on top of Ethereum platform, launched in November 2017. SwissBorg (CHSB) Price for today is $0.0913813, for the last 24-hours 30,623,506 CHSB's were exchanged with a trade volume of $2,798,417.It's currently traded on 4 exchange(s) and has 6 active market(s), the top two exchange pairs are bitcoin & ethereum. The DRP Crowdsale is going on… The DRP crowdsale, launched on June 1 st 2017, is going on to raise DRP tokens. Interested participants or investors can participate via their wallet.

[index] [14448] [19158] [18015] [29162] [695] [11493] [15849] [30520] [27046] [17499]

INCREDIBLE BITCOIN CHART SHOWING A HUGE MOVE AND THIS $1,000,000,000 WHALE IS GETTING READY!!!

Learn how to read stock charts and identify technical patterns as ClayTrader does a quick stock chart review on Bitcoin (Bitcoin). Watch more Bitcoin Technical Analysis Videos: https://claytrader ... This bitcoin chart could change everything (critical level on BTC). In this video we explain the important of a key level on the higher timeframe chart of bitcoin and we focus on the likely wave ... Learn how to read stock charts and identify technical patterns as ClayTrader does a quick stock chart review on Bitcoin (Bitcoin). Watch more Bitcoin Technical Analysis Videos: https://claytrader ... Bitcoin will be the new store of value and crypto will be the new technology evolution and I want to be a part of that trough this channel. I will be sharing my ideas about the future of Bitcoin ... 20th June 2018 - Babb Crowdsale, Bitcoin Drops, 3 To 6 Strategy ... Trading 201: How To Read Stock Charts Properly & Develop a Market Bias - Duration: 54:18. Live Traders 34,628 views. New;

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