Bitfinex lists its LEO utility token!

If you like what you read, feel free to share it:

According to a recent blog post by Bitfinex, yesterday Bitfinex listed its own utility token LEO (full name – UNUS SED LEO). Its main mission is to empower the Bitfinex community. The company previously closed a $1 billion initial offering sale. Currently on Bitfinex.com is no information about the new utility token. It will be trading against BTC, USD, USDT, EOS, and ETH. 

UNUS SED LEO raises $1 billion

The original name of the token is rather long, but it is the name of its initial issuer. Judging by recent news, Bitfinex closed its token sale in just 10 days. The company had a private sale in which unknown investors invested sums ranging from $1 million to more than $100 million. However, the raised sum wasn’t just in the form of USD. It was a combination of USD, BTC, and USDT.

“In addition to our excitement around bringing such an unprecedented and powerful token to the heart of our community, the Bitfinex team remains dedicated to continuing to grow and develop core infrastructure for our industry as a whole. We remain invigorated and humbled by the support of our users, personnel, and beneficiaries, and welcome everyone to the era of UNUS SED LEO,” reads their blog post. 

Source:

https://medium.com/bitfinex/unus-sed-leo-to-be-listed-on-bitfinex-on-monday-following-completion-of-1bn-contribution-10e5d56abf9d

Photo by Bitfinex

How to Short Bitcoin? A Beginners Guide

If you like what you read, feel free to share it:

In this article, we will overlook how to short Bitcoin. Most beginner traders think that you can only profit from cryptocurrency price increasing. The basic belief is that if Coin A goes up in price – you profit, but if coin goes down – you lose money. However, this is a very common misconception between underdeveloped financial instrument traders such as altcoin pairs in small exchanges or just inexperienced traders. This brief guide will teach you what is shorting and how you can short Bitcoin.

What is shorting?

The definition of shorting is borrowing any asset or security and selling it with a belief to later sell it for a lower price and after giving back the security keeping the sell-buy price difference. In the essence one is shorting if he believes that the price is going to go down, however, shorting can be used as a tool for hedging. Usually for borrowing assets from a broker for shorting you need to pay some interest, however, some brokers offer a shorting interest free marking it up in trading fees.

Example of shorting

John is grocery shopping at his local market and sees that bag of apples costs 100 USD. John thinks that the price is far from the real value of the bag. He goes to his friend`s house and borrows a bag of apples. Then he goes back to the market and sells his bag. A week later, he comes back to the market and sees that apples now cost 80 USD per bag. He buys a bag for 80 USD brings it back to his friend’s house. The total outcome of this is that John has earned 20 USD due to the fact that he sold the bag for 100 USD and bought it back for 80 which leaves him with 20 USD difference.

You can short Bitcoin on following exchanges

How to short Bitcoin on BitMEX

Lets image that you want to short Bitcoin. The steps that you need to take are as following:

  • Log in or create your own BitMEX account
  • Select your order type: Limit order will let you set exact buying/selling price, market order will execute trade at current market price, Stop market will place a stop-loss at market price when price reaches your target,  Stop limit will do a limit order with stop-loss, Trailing stop will execute order with set price limit from a floating point, take profit-limit will set an opposite order of your current position at your chosen price and amount, Take profit-market will place an opposite order of your current position at certain point and amount within market price.
  • Place your order and you are good to go! Remember to always adjust your margin.

Disclaimer: Always trade with cautions. This guide is for educational purposes only and is not financial advice. Any content displayed is not encouragement for any specific financial decisions e.g. shorting Bitcoin.

Proof-of-keys: The exchanges that failed

If you like what you read, feel free to share it:

Recently, in January 3rd, happened the annual proof of keys event. Created by Trace Mayer, it advises traders to withdraw all their Bitcoins to see the exchanges’ ability to provide solvency. Unfortunately, there were a few precedents which appear to have failed the annual occasion. 

The loudest case: Singapore based BiteBTC.com reports fire three days after the occurrence

On January 3rd, the exchange reported that their data centers experienced a fire during new years eve. Specifically, according to their announcement, the fire happened on January 1st.

They write:

“On January 1, 2019, a fire occurred in the data center where the exchange servers are located, as a result of which part of the data on the main and backup servers was destroyed.
All crypto coins wallets are safe, but we need time to restore the balance sheets and trading history of about 7% of traders from earlier backups.
We ask to fill in the form to the support service with the indication of your recent transactions and operations with wallets.
We apologize and ask to treat this situation with understanding.”

BiteBTC.com provided no further evidence. In the meantime, many users complain about their account status as they neither can withdraw their funds nor access their accounts.

However, users can still create accounts at this time, and suspiciously enough, Bitcoin is trading at higher prices. According to CCN, this is a common exit-scam strategy. Even Coinmarketcap.com updated the status of the exchange saying: “We have received reports that user deposits are being withheld. Please be careful with your funds.”

We advise not to deposit any funds in this exchange while such confusion is in the air. We have sent reporters to Singapore to check out their headquarters for any evidence. More info is soon to come!

Many other exchanges report problems

Poloniex

Some crypto traders know that Poloniex freezes accounts, and locks withdrawals from time to time. This is the main reason why they don’t use that exchange anymore. This is no exception. During January 3rd, many people complained about their transactions taking even up to four days. People share no surprise with the exchanges ongoings.

On the other hand, Poloniex is one of the early bird exchanges in the crypto-sphere. It launched in 2014 and still is one of the largest and popular exchanges there is. Many traders start their trading days exclusively with Poloniex.

Bitfinex and Coinbase

Bitfinex is yet another exchange which reported issues on their platform exactly on January 3rd.

This tweet raised a lot of suspicion among traders. However, this was a very short issue. They resolved it in an hours time. So technically this does not apply as a failed Proof-of-keys issue. But weirdly enough, Coinbase also reported issues with BTC/USD trading pairs on their exchange Coinbase Pro. Tweeters started exchanging opinions about this weird coincidence. There was only a half hour between Bitfinex and Coinbase tweets. Go figure. All their services are back up and running now.

Robinhood

Trace Mayer’s proof of keys twitter thread became a place where people posted their observations about several exchanges failing Proof of keys. A Twitter user @ansalhar Ben Westgate posted a reply to Trace Mayer saying:

“@RobinhoodApp Failed Proof of Keys 2019 Promised and Did Not Deliver. “Coin Withdrawals At this time we don’t support coin withdrawals, though we plan to do so in the future.””

Moreover, Robinhood still is yet to answer to this accusation as their Twitter activity ends on January 2nd.

Purse.io

Although PurseIO is not an exchange, you can deposit Bitcoins within their platform. Purse allows users to buy things with Bitcoin via Amazon Prime. A Twitter user @crypto_senior posted that they have halted withdrawals “with no reasonable explanation”.

However, PurseIO’s support manager, with a Twitter username @Codiox quickly responded that everything within the site, including Bitcoin withdrawals, are working fine.

HitBTC

As we recently reported many complaints arose blaming HitBTC for freezing customers’ accounts. Lots of FUD were shared around the crypto-sphere, but now it looks like HitBTC is backing all these claims, and says they have responded to everyone in Reddit and Twitter as well. They blame Cointelegraph for creating articles in a biased manner, with a series of compiled quotes, saying: “We’re always in touch”.

HitBTC started replying to users on Twitter


Proof-of-work shakes up the crypto ecosystem.

All these precedents, except BiteBTC mysterious fire issues, are minor. All users’ funds are safe. But people have some thinking to do right now. You should ask yourself, whether you trust these exchanges. Because this year, you could say that Proof-of-keys was not that big of a movement. Trace Mayer is not that familiar within China-based traders and Asia in general. It could take time for this movement to reach that side of the world. But one thing is for sure – this movement will become larger and larger with every New Year approaching. Maybe this is the time when to switch to Decentralized Exchanges?

This subjective tweet sums this occasion up pretty well:

Source:

https://goo.gl/oYARoJ
https://www.proofofkeys.com/#failures
https://goo.gl/zH3AbZ
http://archive.vn/lME4K

Photo by Luka Siemionov from Pexels

The next morning after the BCH fork

If you like what you read, feel free to share it:

Yesterday, November 15, 2018, the Bitcoin Cash network had a hard fork. As a result, now the chain has split up in two different coins, as expected, BCHABC and BCHSV. The fork occurred at block 556,766. 

The fork got postponed.

The fork was expected to happen at 16:40 UTC, but it got delayed and occurred several hours later. Twitter and social media sites were blowing up because of this event. Everyone had an opinion and wanted to share it with the world.

The world was watching.

There were a series of live streams on Youtube. Tone Vays hosted one where the top BTC supporters gathered to talk about what’s happening. Giacomo Zucco, Willy Woo, David Silver, Charlie Lee, Nick Core, Francis Pouliot, Ven Zen, and many many more popular Bitcoin defendant figures were just a small part of the video.

There was another video on CoinSpice channel, where similarly, a lot of Bitcoin Cash supporters gathered along to wait for the fork to happen collectively. Vitalik Buterin and Roger Ver joined them as well. Both of those videos turned out to be longer than seven hours.

That would have been a regular fork if both leaders of both camps hadn’t engaged in a severe hash-war. It was almost like following a sports game of some sort. It was something the crypto-space had never experienced before. Such media coverage and unknown outcomes had never rustled with cryptocurrencies.

Conclusions

You can check the technicalities and specification on both forks in our previous articles about the fork itself, and one where Roger Ver comments on it.

It all got so far that the supporter behind Bitcoin Cash SV, Craig S. Wright, started vowing that he would destroy the Bitcoin Cash ABC network. Although just minutes before the fork took place, it looked like Bitcoin Cash SV had the most hash-rate support, it turned out to be in favor of Bitcoin Cash ABC. As a result, BCHABC had a significant lead over the BCHSV hash-rate. Approximately 75% of all BCH nodes were running the ABC network, while only 8% were supporting the SV network. Consequently, the Bitcoin Cash hash-rate war winner is Bitcoin Cash ABC. Some exchanges have already clarified that soon they will replace the BCH ticker with BCHABC, thus making Bitcoin Cash Bitcoin Cash ABC.

As for Bitcoin Cash SV, it looks like mining at a loss will not be an option and they will switch to a different network.

At the time of writing judging by the statistics of Coin Market Cap, BCHABC is trading at $287,41 with a +3% gain, whereas BCHSV is trading at $112.73 with a -29.85% downtrend occurring.

BCHABC chart on CoinMarketCap
BCHSV chart on CoinMarketCap

Both are being traded on Poloniex, Bitfinex and HitBTC. Available pairs are BCHABC/BTC(Poloniex, HitBTC); BAB/USD(Bitfinex); BAB/BTC(Bitfinex); BCHABC/USDC(Poloniex), and BCHSV/BTC(Poloniex, HitBTC); BCHSV/USDC(Poloniex); BSV/USD(Bitfinex); BSV/BTC (Bitfinex).

Source:

https://goo.gl/FpY5Tf
https://goo.gl/Wg4ze1

Photo by rawpixel.com from Pexels.