ConsenSys co-founder joins DARMA crypto fund, goes long on Ethereum

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Andrew Keys, the co-founder of ConsenSys, recently joined DARMA capital, a crypto-focused investments fund, as the newest managing partner. Keys strongly believes in Ethereum and is one of the main figures in DARMA’s decision to position their high-net-worth accredited investors for a decade long Ethereum bull run. 

Yesterday, Andrew Keys announced that he is moving from ConsenSys to DARMA capital as the newest managing partner. He joins James Slazas, the former head of capital markets at ConsenSys. At the same time, he stays at ConsenSys at the advisory board.

DARMA (Digital Asset Risk Management Advisors) capital is a CFTC-regulated firm with approximately $100 million in assets under their management. These are the funds of the high-net-worth accredited investors which are meant for the Ethereum “Optimized Long fund”. However, this Ethereum long position doesn’t stop at just being a long-term investment. The main idea for this Ether long-run is to accumulate more Ethereum. Andrew Keys revealed that his goal is to accumulate 1 percent of the total funds per month.

“So if you gave me 100 ether, my goal would be to produce 1 ether a month,” Keys says.

He explains that this is no “hodling”. Ultimately, their plan is to spot the market “highs” and “lows” in order to accumulate more digital assets.

Moreover, Keys has long been rooting for Ethereum. In 2018 he did an interview at the Economic Forum at Davos where he said:

“We will have a decentralized World Wide Web, and it will impact every aspect of our humanity. I’m going to be able to have peer-to-peer transactions with counter-parties without a bank, or a Facebook, or an Uber, an Amazon, an eBay in the middle.”

DARMA Optimized Long-ETH Fund

Or in short – DOL-ETH, is a program which automatically manages investor digital asset portfolios. It is designed to identify the market cycles and not only hold the assets as such. Their main point is to “create alpha”. Alpha is often referred to as an investment strategy, which ultimately means to “beat the market” or spot the edge. It refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole.

Moreover, the company already has plans for the upcoming future, as they won’t stop at an individual Ethereum Long fund. They are in the works to providing a bitcoin long fund as well in the upcoming months. However, an interesting decision is to offer a similar long fund on Filecoin. Andrew Keys explained that investors can expect this sometime next year.

“We believe [those tokens] will be the components of the next-generation internet and essentially there is a new asset class in what I would call crypto commodities. So we’re not interested at the application layer, we’re interested in the protocols that many different applications will use,” clarified Keys.

ConsenSys and DARMA will Work Together

As already mentioned, Keys transitioned from ConsenSys to working full time at DARMA, however, he will stay as an advisor at ConsenSys. ConsenSys is a blockchain software company. Since Joseph Lubin, the co-founder of Ethereum, founded the company, their main field of operations is developing decentralized software services and applications that operate on the Ethereum Blockchain. ConsenSys has invested in DARMA in the past, and it will stay as an investor now.

Additionally, this perfectly aligns with what Andrew Keys has done in the past. He revealed that this shift matches his personal interests. 

“My core competency has been in finance and my secondary competency has been in technology,” he said.

Why DOL-ETH is better than other funds?

Keys explains that there’s a void in the market. He also believes that this Ether long fund is a simple solution and a necessary missing piece of the market.

“I think the investment stage, if you look at the PwC blockchain hedge fund report, over 70 percent of them have less than $10 million assets under management, half of them don’t use a custodian and it’s very immature. We have $100 [million] AUM, we have one of the best custodians in Opus, we have KPMG as an auditor,” explains Keys.

However, at the moment, only accredited investors, family offices and institutions can participate in this fund. 

Source:

https://www.ccn.com/crypto-hedge-fund-long-term-ethereum
https://www.coindesk.com/consensys-capital-co-founder-departs-to-bring-wall-street-money-to-ethereum

Photo by rawpixel.com from Pexels

Is Samsung developing its own Ethereum-based blockchain? Samsung Coin?

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Rumors say that the electronics giant Samsung is about to develop their own blockchain network which would be Ethereum based. This comes from an unidentified person who is “familiar with Samsung’s internal situation”, says CoinDesk. 

A Hybrid-blockchain

The unidentified, unofficial source tells that Samsung is building a blockchain mainnet based on Ethereum. However, this work is still at the “internal experimentation” stage. Additionally, it is quite unclear whether they are already working on a blockchain, or they are just about to figure out on what they are working. The source says:

“Currently, we are thinking of private blockchain, though it is not yet confirmed. It could also be public blockchain in the future, but I think it will be hybrid – that is, a combination of public and private blockchains.”

Judging by this quote, it’s clear that Samsung hasn’t yet figured out on what exactly they are working.

Samsung Coin

While they haven’t yet started working on their blockchain project, they are already claiming that they could be needing a Samsung Coin token. The source says that “the market expects Samsung Coin to come out, but the direction has not yet been decided”. This token could be used on its payments app Samsung Pay, however, at this point, it’s just speculation.

Moreover, Samsung says that their blockchain task force has been working on number of projects for “at least a year”.

At this point, all this is just speculation. It’s quite the same as all the rumors about a Facebook Coin and Facebook blockchain developers. When looking at it with a philosophically practical view, it is highly unlikely for such giant corporations like Samsung and Facebook to develop it’s own token/coin, not even talking about it being able to trade on a traditional crypto exchange. Facebook has revealed that even if they would be making a cryptocurrency, it would be a stablecoin.

Why would Samsung’s strategy differ much? Companies of such scale cannot allow the risk of implementing a highly volatile asset within their services. They are interested in a stable currency.

At the same time, it’s not impossible. I believe that almost everyone in crypto has pictured how that could affect the whole cryptocurrency market as such. 

Source:

https://www.coindesk.com/samsung-developing-ethereum-based-blockchain-may-issue-own-token

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ConsenSys Seeks for $200 Million From Outside Investors

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Recently reported by The Information, a Brooklyn-based blockchain company ConsenSys is seeking for additional $200 million from outside investors. It was founded by Joseph Lubin, the co-founder of Ethereum. 

ConsenSys Grew too Quickly

During the bull market of 2017, ConsenSys reached near 1,200 employees. However, at the end of 2018, they came to a decision to lay off 13% of their staff, because of the long-lasting bear market. Now they have approximately 900 employees. Judging by recent reports, ConsenSys revenue last year was around $20 million. That could be the main reason why they are seeking an additional investment. When comparing to other large blockchain companies ConsenSys seems to be using a different business model. For example, Ryan Selkis, the founder of Messari, tweeted a data slide from the annual DCG summit showing off the company’s numbers:

When comparing to yearly revenue reports on DCG (Digital Coin Group) we see that they managed to do over $100 million in revenue in 2018 with only 8 employees in the parent company and less than 100 total employees. Anthony Pompliano says that Coinbase is rumored to have done over $1 billion in 2018 revenue. However, Binance showed $78 million in revenue in only the first quarter of 2019. Binance has approximately 500 employees across the world.

While many say that these are not comparable companies, we can compare different business approaches.

ConsenSys Revenue Mostly is Coming from its Enterprise Consulting Business.

The Information had gathered fundraising documents from ConsenSys. These documents revealed that most of the 2018 revenue comes from their consulting services. This year, they plan their revenue to be around $50 million with $40 million coming from their enterprise consulting business. Moreover, these documents reveal that ConsenSys has a substantial share in blockchain companies.

While their primary business revolves around building blockchain infrastructure, it might seem that they are not using it efficiently. Anthony Pompliano says in his daily newsletter:

“ConsenSys has focused on less infrastructure though and more on the applications, along with driving majority of their revenue through consulting with governments and large enterprises. It remains to be seen if the strategy will pay off in the long run, but the pressures of a deep bear market expose the difficulties with this model.”

However, he wouldn’t want to count ConsenSys out. While up to this date ConsenSys might have lived with one man funding the company – Joseph Lubin, this is just the effect of the ever-lasting bear market. Pompliano believes that when the bull market will return – ConsenSys wide range of crypto assets will explode, thus driving more revenue.

Should be able to raise the money

Many believe that ConsenSys should be able to raise the capital they need. The company is led by some of the smartest people in blockchain industry. Additionally, the large basket of crypto assets that they have acquired during the company’s existence should be enough of a reason for a potential investor. Wayne Vaughan tweeted a prediction that Microsoft will invest in or acquire ConsenSys in 2019.

Source:

https://www.theinformation.com/articles/consensys-seeks-200-million-from-investors-after-bumpy-year?
https://cointelegraph.com/news/report-blockchain-startup-consensys-seeks-200-million-from-outside-investors
Anthony Pompliano newsletter

Photo by ConsenSys.net

Vitalik Buterin spoke about Ethereum 2.0 in the South Korean Parliament

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Vitalik Buterin, the creator of the second largest cryptocurrency Ethereum, had a speech in the South Korean Parliamentary session. The main theme was the future of blockchain and the global economy. Min Bjung Du, the chairman of the South Korean National Policy Committee, also took part in the session.

14k transactions per second

“The purpose of Ethereum 2.0 is to reach 14,000 transactions per second, which is equivalent to 2.8 MB,” said Buterin. He explained that this is due to the transition to PoS and implementing sharding, which is still a major priority.

“We will use our Ethereum verification algorithm Casper as Ethereum 2.0-based technology,” said Buterin. “The technological progress helps to solve the initial problems of blockchain technology,” he said. “Over time, various blockchain technologies such as Proof-of-Identity will be used.”

Developing wallet security

Buterin noted that the key technology in the blockchain must meet the requirements of scalability, confidentiality and security. In reality, the speed of blockchain transactions is too small for it to replace the financial market safely.

Also, Vitalik Buterin said there is a need to develop ways to enhance wallet security. As far as private information is concerning, the users should probably not enter it into the blockchain. Given its specificity because such information can be disclosed.

He mentioned the Metadium project as an example that can work with identification data and successfully address security issues.

Bad performing ICOs

He also addressed the bad performance of ICO projects in recent years. Buterin said that, in general, innovation companies would probably suffer from a drop in stock prices after listing. Also, he was pointing out that in the future, the investors will determine the growth and viable financing models of these companies.

Buterin noted that in 2019 the quality of ICO projects has improved significantly, and the demand for certain blockchain applications is now becoming more apparent.

Source:

https://kripto.media/vitaliks-buterins-dienvidkorejas-parlamenta-sede-pastastijis-par-ethereum-2-0/#respond

Photo by flickr.com

Constantinople upgrade is live!

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Yesterday, on February 28, 2019, the long-awaited Ethereum “hard fork” or “network upgrade” Constantinople finally went live! As planned, it occurred on block 7,280,000 and although the plan anticipated two upgrades: Constantinople and St. Petersburg, both were combined in one. 

Client Adoption

Not to mention the success in upgrading the network, yet not all Ethereum users adopted the new network. At the time of writing, the total percentage of users that have their clients ready is 28% equivalent to 3088 clients. This includes 24,5% of total Geth nodes and 42,3% of Parity nodes. However, this is very early to point out, since the update is only a couple of hours in.

Source: https://ethernodes.org/network/1/forkwatch/overview

Constantinople and St. Petersburg upgrade

As mentioned before in our previous article, the new upgrade – Constantinople, will integrate 5 new proposals, also known as EIPs (Ethereum Improvement Proposal). These proposals will affect the speed and functionality of the network, its members’ costs and, of course, the miners.

At the same time, with the Constantinople “hard-fork”, St. Petersburg upgrade is also active. Its task is to disable the EIP-1283 protocol, which identified vulnerability issues such as Reentrancy. That is why the update was canceled in January.

The price of Ethereum

During the update on February 28, the price of Ethereum remained significantly stable.

ETH/USD on tradingview.com
ETH/BTC on tradingview.com.

However, in the previous day on February 27, there was a slight dump in the price, and it went from $141 to $132. This probably was the effect of uncertainty from investors and users because of previous delays of this upgrade. Once they got affirmation that the upgrade is actually going to take place, they bought back in.

Ethereum 7 day chart on coinmarketcap.com. What happened before Constantinople.

The Ethereum Network and PoS

The daily issuance now will be at 13400 ETH, with one block time of 14 seconds. Even more, the block reward will decrease from 3 to 2 ETH (EIP 1234). Overall Ethereum’s inflation rate will be around 4%. Also, the update optimizes the use of gas in the network and creates conditions for activating the Casper protocol, which will transfer Ethereum to the consensus PoW / PoS hybrid algorithm.

Useful links:

List of all Ethereum historic hard forks

The day before the upgrade

The previous postponement

The first delay

The current stats on the Ethereum Network

Source:

https://cointelegraph.com/news/ethereums-constantinople-st-petersburg-upgrades-have-been-activated/amp
https://kripto.media/ethereum-hardfork-jau-sodien-atlidziba-samazinasies-bet-vai-maineri-aizies/
https://etherscan.io/blocks?l=HardForks
https://ethernodes.org/network/1/forkwatch/overview

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The Ethereum “network upgrade” is today! Is this the end of ETH mining?

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The long-awaited Constantinople network upgrade is finally here! It will happen today in block 7280000. As a result, mining rig owners will start this spring not only in the sun – after all, the cost of a block will fall from 3 to 2 ETH. Will it make the miners to move, and the network hashrate – collapse, respectively? Let’s try to understand it.

Hardfork “Constantinople” on the Ethereum Network

Let’s put theory in first. Constantinople is the name of the next Ethereum’s system update. The developers planned to update the blockchain already on January 16, but due to the vulnerabilities found in the code, they decided to postpone the hardfork. However, Constantinople is not a controversial issue – developers, stock exchanges and other community members support it. Also, you should not wait for a chain split and the appearance of new coins.

By the way, it did not stop the fraudsters/scammers. They were trying to get some HOLDers coins by promoting coins like Ethereum Nova and other scam projects. This issue was partly responded by Vitalik Buterin. On January 10, he offered to accept the Zcash terminology to start calling such “hard forks” “network updates”.

What’s new in the Ethereum network update?

Constantinople needs to integrate five proposals, also known as EIPs, to improve Ethereum. They will affect the speed and functionality of the network, its members’ costs and, of course, the reputable ones. Let’s remember them.

EIP 145

The component will add bit shifting instructions to Ethereum Virtual Machine (EVM). It will allow bits of binary information to move left and right. It all sounds complicated, but the point is simple. Thanks to the EIP 145, changes in smart contracts will become 10 times cheaper.

EIP 1052

The upgrade will teach smart contracts to approve each other using only one hash. Before Constantinople, this was done by checking the entire code, which is long and expensive.

EIP 1014

Vitalik Buterin’s proposal activates so-called state channels. Ethereum scaling will be implemented through transactions outside the chain.

EIP 1283

The update reduces gas costs for SSTORE operations and makes transactions cheaper.

EIP 123

The proposal consists of two parts: the postponement of the difficulty bomb for 12 months and the reward for block reduction. The block reward will decrease from 3 to 2 ETH. The reduction will not be the first: activation of the hardfork “Byzantium” at the end of 2017 reduced the reward from 5 to 3 coins.

At the same time, Constantinople will also activate St. Petersburg. Its task is to correct previous errors in the protocol.

Why Constantinople was postponed?

The day before the update, ChainSecurity specialists found a hole in the code that allowed them to steal user funds. There was not enough time to fix the problem – so developers postponed the update to another date.

What happened with the network after Constantinople was postponed?

The update was announced a few hours before the scheduled time, so not all members of the community knew about it. Sources say that about 10 percent of the advertisers did not update the software and stayed in the wrong chain.

But the most important event here is the activation of the difficulty bomb, which Constantinople had to move. Remember – this word combination means a mechanism that gradually increases the complexity of the PoW acquisition to complete the blockchain operation. The bomb was introduced for the future transfer of Ethereum to PoS – as originally planned.

Ethereum daily block rewards chart.

The recent record-low volumes of new coins in the network are directly related to the difficulty bomb. Moreover, the mechanism increased the block time from 14.5 to 20 seconds.

In addition, an anti-record was recorded on February 17, with 12989 coins on the day. However, during autumn, the indicator remained stable at 20,000 ETH.

The coins from block rewards became less and less, and therefore changing the Ethereum network became even more disadvantageous. However, the miners knew what was happening and gradually got off the network. Look at the hashrate changes.

Is this the end of Ethereum mining?

In other words, the situation seemed hopeless. Miner’s profits already are low, and now comes Constantinople with a reduction in its block rewards. As the reward falls from 3 to 2 ETH, everyone is expected to lose 33 percent. Does this seem logical?

In addition, for example, boys from Epool have joined a small hysteria and conducted a Twitter survey. They asked users to predict where will the 154 TH go – namely the entire Ethereum network – after the update.

Most of the tweeters voted for Ethereum Classic. 53% – it’s serious. Is everything really so bad?

No. Firstly, as correctly pointed out by Josh J White, the survey was similar to the dreams of other coin shillers to gain a significant hash rate increase on their networks.

Secondly, what is particularly important, is that the reduction in block rewards in the current circumstances will be almost unnoticeable. You should thank the difficulty bomb for that.

After yesterday’s results, the average block time is 20.9 seconds. So, 2.87 blocks per minute, 172.24 per hour, and 4133.97 per day. Let’s round the score to 4134 and multiply it by 3 reward coins for each block. We get 12402 ETH.

Now let’s make the same calculations for 14.5 seconds, which will lead to the postponement of the difficulty bomb. 4.13 blocks per minute at 248.27 per hour and 5958.6 per day. Round off to 5959 and multiply by 2 (coins) – we get 11918 coins. Excluding ankl-blocks, the reduction will be approximately 3.9%. In a global context, it can hardly reduce the networks hash rate. The result is that the situation with Ethereum mining will hardly change. The balance of power will remain, mining rigs will continue to function.

Conclusion

The Constantinople update will not kill Ethereum’s mining niche – compared to February – profits will still be almost the same.

If we remember what happened in November, there will be less ETH coins to produce. Taking into account the base law of demand and supply, theoretically, it is even able to increase the price of ETH, but the overall trend of the market still plays a big role.

Overall, Constantinople is not about the price of Ethereum. The update will be another step towards Ethereum 2.0 and the consensus of Proof of Stake. Also, this will obviously bring more benefit to the community and humanity rather than yet another chance to meet speculative interest a few times.

This article is done in cooperation with our Latvian media partners Kripto.Media

Photo by flickr.com

Crypto Market Update February 19, 2019

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In today’s crypto market update, we’re going to look at the past top gainers, top asset trend lines, market cap and daily volume of the most popular exchanges. In the past days, the crypto Gods have blessed us with quite notable gains, so let’s look at the most giving assets in the past days. The color green in yet again taking over and a slight smile is forming onto traders faces across the crypto globe. The total crypto market cap has risen in the past days by $13 billion. Bitcoin dominance fell below 52%, now being at 51,6%. The total volume of crypto markets is $36 billion.

Top Gainers in the past days.

EOS

The top gainer from the Top 10 coins and tokens in the past 7 days definitely is EOS. EOS experienced +31.1% in the past week, but mainly in the past couple of days. Who said you can’t profit in a bear market? Well, of course, if you’re not the hodler from August 2017.

I couldn’t find a particular reason why exactly EOS is pumping so hard, but lot’s of traders on Twitter are sharing their wit that they knew this ahead of time. Of course, what else they could say. However, today EOS managed to go past the target at 8830 sats, and now is continuing its way up. Also, there are two ways you can look at these charts: the market against Bitcoin or against USD. If you’re willing to sell and accumulate more BTC, then look at the EOS/BTC chart, but if you’re willing to sell immediately to USD, then EOS/USD chart would fit best for you. Although when comparing these two charts, we see a drastic difference:

EOS/BTC chart
EOS/USD chart
EOS chart on coinmarketcap.com

But an interesting question is sneaking around Twitter:

I’m sure a lot of that money is used in product development, but that is a huge amount. I mean $4 billion… It’s needless to say that EOS has had some troubles explaining this in the past.

Ethereum

Next, surprisingly, comes Ethereum with +22.4% in the past 7 days. ETH went past the 1st resistance mark and now is resting at the edge of the second resistance mark at $146. Of course, the main target is at around $210, so we have a long way to go. Also, the daily volume has set new highs, being the highest ETH has seen in the past four months or so. Although that depends on where you are checking your charts. As you can see coinmarketcap.com compared to Tradingview paints a bit of a difference.

Ethereum volume on tradingview.com
Ethereum chart on coinmarketcap.com

This pump may be because of the near Constantinople update, but, however, it might be postponed again due to security issues. On the other hand, in the past couple of days, many coins are pumping so this could be just a temporary market uptrend.

Bitcoin

Bitcoin, on the other hand, is testing new “highs” at $4000, but now still sitting at $3,926. Will we break through the next two target points? The 7 MA (green) moved past the 77 MA (orange) and bravely is continuing its way up. The 231 MA is on an uptrend in the past hours and 77 MA has crossed it upwards. Are we looking towards a bull market?

Bitcoin trend lines. Source tradingview.com

However, Murad Mahmudov has a different point of view:

Volume in the past 24h

Judging by this measure, we should get an approximate picture of the most popular daily used assets. And as we can see in the picture below, Bitcoin is the number one asset, followed by a stablecoin Tether. Both accumulating around $10 billion. Only after them comes Ethereum with half as much volume at $5 billion, and after Ethereum comes EOS, also with half as much volume as Ethereum – $2 billion. As we can see, Litecoin in the past 24 hours has had more volume than Ripple, so it is safe to say, that Ripple (XRP) is losing its positions. Could it be because of the latest JP Morgan stablecoin? Another interesting position in the top 10 is Qtum, which is accumulating $356 million in the past day, getting ahead of Dash.

Top assets by the daily volume. Source: coinmarketcap.com

Top Exchanges

When looking at exchanges, this becomes pretty mind-boggling. Coinmarketcap.com and Coingecko.com show a completely different picture. As we can see in the pictures below, the information completely differs from each other. This might be because we are measuring them by USD daily volume. One thing is for sure – Binance is at the top of both websites, but as we all know – Binance is not a regulated exchange, so anything can happen. But when it comes to the second position or any other in the top 10, this is where it gets tricky. Coinmarketcap.com shows that Bit-Z is second with $1,2 billion adjusted volume. However, coingecko.com shows that ZB.com is second with $1,4 billion volume. On the other hand, coinmarketcap.com lists ZB.com at rank 13 with $525 million adjusted volume… What gives? Well, one thing is that these both statistics websites are tracking exchanges by different measures, but I wouldn’t have imagined that the overall picture would be so mind-blowingly different.

Statistics on coinmarketcap.com
Statistics on coingecko.com

I couldn’t stay still with such confusion on crypto exchanges, so I went on https://exchangewar.info to find some clearance. When sorted by top BTC volume I kind of got my answers I was looking for. This might be the main difference between these statistics websites and the USD daily volume. In some of those exchanges Bitcoin is not covering the main daily volume, so that is why the statistics are different.

Statistics on exchangewars.info

Source:

coinmarketcap.com
coingecko.com
exchangewar.info
coin360.com

Ethereum Daily Block Rewards are Down by 25%

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A so-called “mini-ice age” for Ethereum miners sets in as the new difficulty bomb is live. Due to that, the Ethereum daily block reward now is down by approximately 25%. It went from 20,000 to roughly 15,000 ETH per day. 

ETH daily block rewards chard. Source: https://etherscan.io/chart/ethersupply

The “Mini-Ice Age”

As we reported earlier, the Constantinople upgrade was already delayed a couple of times before, so this is putting a rather large question mark on whether the “Difficulty Bomb” could last longer than expected. The upgrade plans to be live at block 7,280,000 or around February 27th. With Constantinople setting in, the issuance reduction from 3 ETH to 2 ETH will kick in. Also, the Difficulty Bomb will be suspended for a year. This, of course, can put a large pressure on Ethereum mining economics.

Ethereum at high risk

The ice age protocol automatically initiated the difficulty bomb and now every two weeks the daily block rewards will fall for about 2,000 ETH. This is because of an increase of block times. This puts Ethereum at high risk because no one knows whether the upgrade won’t be postponed again. If Constantinople won’t go live again the difficulty can rise to such levels that it will be impossible to mine a single block. At the moment ETH block time is about 18 seconds, previously it was around 15. However, the last time difficulty bomb was delayed back in 2017. And then the block time reached a high of 30 seconds per block. Additionally, network fees stay at the same level – at around half a cent.

Some useful links:

Ethereum daily block rewards chart
The transition to PoS (Proof-of-Stake)
Ethereum faces security risks after a technical audit
The first delay of Constantinople

Source:

https://www.trustnodes.com/2019/01/28/ethereums-new-supply-drops-by-25

Photo by Pexels.com

Cryptopia hack continues!

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Recent news show that the Cryptopia hack is continuing to cash out Ethereum. Previously we reported that Cryptopia encountered a security breach which resulted in $16 million worth of Ethereum stolen. Since then Cryptopia closed their website, as this is notified to government instances. 

New Zealand police comments

Since the previous hack, New Zealand police is working on solving the crime. They are in talks with Cryptopia, to gain further understanding. “A dedicated investigation team is being established in Christchurch including specialist police staff with expertise in this area. Police are also liaising with relevant partner agencies in New Zealand and overseas,” says in the report.

Hacker continues to steal funds

Toady, judging by recent reports, the hacker stole a little more than 1,675 ETH. These funds, from around 17,000 Cryptopia user wallets, the hacker sent to these addresses. Among these 17k addresses were around 2k wallets that featured in the previous hack. Also, it included 5,000 wallets which users’ had even topped up since the previous theft.

These funds are sent back and forth using the aforementioned addresses, and now the address with most funds is “Cryptopia_Hack2” with 30,789 ETH. As you can see these addresses are flagged by etherscan.io.

Cryptopia no longer has control of their Ethereum wallets

It seems apparent that the hacker or group of hackers now have full control of Cryptopia’s Ethereum wallets.

They can operate at free will with the funds. A Twitter user @notsofast says that Cryptopia have to rebuild the entire hot/cold wallet system before recovering the rest of system’s assets.
Also, in January 28th, they tweeted this image:

Image from Cryptopia’s twitter

Users still depositing funds

Signs of users still depositing funds within the Cryptopia wallets happened just two hours after the second hack. <- Tweet this!
Elementus, a universal Blockchain query engine, reports that these funds are coming from mining pools. Probably these users forgot that they have a designated mining address, where all the mining payments go straight to Cryptopia.

Let’s hope that Cryptopia solves this issue with private keys. Moreover, Cryptopia hasn’t communicated today about the second security breach.

Source:

https://elementus.io/blog/cryptopia-hacker-strikes-again-15-days-later/
https://cointelegraph.com/news/report-new-zealand-cryptopia-exchange-hack-continues
https://ambcrypto.com/cryptopia-compromised-in-another-attack-by-hackers-loses-180k-worth-of-ethereum-eth/
http://www.police.govt.nz/news/release/investigation-involving-crypto-currency-company

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Crypto Market Update January 24, 2019

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Let’s look at another crypto market update today. In the past 24 hours markets are back again in the red area. The total market cap is falling, Bitcoin dominance is falling and it looks like we are heading towards yet another drop.

Top 10 coins and tokens

Bitcoin (BTC) stabilized again in the past days at $3,5k. A couple of days ago it saw a slight increase in price when it went up to $3,7k, but that wasn’t for long. But overall Bitcoin is in a constant downtrend. As we can see in the picture below, Bitcoin experienced a couple rather awkward price pumps and dumps. They seem very similar to each other. Ultimately this raises suspicion whether somebody is manipulating the price.

Bitcoin monthly chart. Source: coinmarketcap.com

Ripple (XRP) also is in a constant downtrend. As well as BTC, you can see small similarities in the monthly chart. XRP also is following the same pattern of a suspicious pump and dump (P&D) activities, but with much less activity. Especially when looking at the XRP/BTC line. It is almost intact.

XRP monthly chart. Source: coinmarketcap.com

Ethereum (ETH) saw a little bit of a different movement chart-wise, but also in a downtrend. In the past couple of days, it stabilized in the range of $116 to $119. As we can see, Ethereum also was a victim of a possible P&D manipulation around the same time as BTC and XRP.

Ethereum monthly chart. Source: coinmarketcap.com

Other coins and tokens in the Top 10 are experiencing a similar pattern. However, we found a small, but at the same time large difference between coinmarketcap.com and coingecko.com.

Top 10 coins and tokens. Source: coingecko.com
Top 10 coins and tokens. Source: coinmarketcap.com

When looking at coinmarketcap.com the Top 10th position belongs to Bitcoin SV with a market cap of $1,311,997,025, and at the 11th position is Cardano with a market cap of $1,114,076,369. But when looking at coingecko.com statistics we see a slightly different view. Coingecko reports that Cardano is at the 10th position with a market cap of $1,330,353,604 and Bitcoin SV is following in the 11th place with a market cap of $1,299,806,455. As for us, these are just numbers on our screens, this is quite a big difference between these two statistics websites. This raises an obvious question – which you should trust and which should you not?

Coingecko vs CoinMarketCap

The total market cap is calculated by multiplying the current total supply with the price (Current Total Supply * Price). Since CoinMarketCap and Coingecko calculate their prices on their own, this could be an issue of sources used. Coingecko reports that there are 275 exchanges, while CoinMarketCap reports that there are only 234. This could be the reason why we see such small but at the same time a large difference between these two statistics websites. Coingecko goes through a slightly bigger amount of exchanges, therefore, they will have a larger number of daily volume which then gets multiplied with the asset price.

Daily volume leaders

Top daily volume coins. Source: coingecko.com

When looking at the top coins sorted by their daily volume, we see quite a different picture if comparing with the top 10 coins and tokens in general. The daily volume could be a better measure to define which asset is currently the most popular in means of usage. We see that obviously, Bitcoin is the ultimate leader with almost twice as more volume as the nearest follower – Ethereum. However, the picture gets interesting when looking at lower places. EOS in third with $759 million in daily volume, followed by Zcash in 5th with a very close number of $732 million. Litecoin and Dash coming next and the surprise of the day – XRP sits only after them with a $336 million daily volume. These are hundreds of millions of dollars we are speaking about. Of course, we could speculate that a few whales could be manipulating the market, but that is very unlikely.

Top 100 Gainers

Top 100 gainers. Source: coinmarketcap.com

Holo (HOT) is the leader of the Top 100 coins and tokens, flying with +33% and a daily volume of $23 million. It looks like they have revealed their product prototypes of HoloPorts. Otherwise, there is not much info about it on Twitter, only a few trader signals.

PundiX is gaining hard with +13%. They recently had a stand in the Binance Blockchain Event. Reports of very good feedback in Reddit
No other significant news on the top gainers today.

The overall market situation

It looks like we are testing new grounds, hence the sideways movement for the last couple of weeks. Just like when Bitcoin was at $6k we experienced a heavy drop to $3,5k. Many say that we are prepping for a similar action, falling to $2k or even lower. There are a few indicators on this as the total market cap and the top assets have an overall downtrend in the last month. There was an opinion that the bear market is going to continue for about 60 days more. Also, we are soon going to be in the longest bear market crypto ever experienced. 

Source:

coinmarketcap.com
coingecko.com
coin360.com