Initial Miner Offerings: China's new trend. 🔨
In my humble opinion...
boy wonder Erik Finman has spoken!
"Bitcoin isn't real, it's just numbers on a computer screen!"
So are the dollars in your bank account. Bitcoin is just as real as fiat money, except Bitcoin can't be printed endlessly.
— Erik Finman (@erikfinman) January 14, 2018
Coin of the Day
NEO's Lightning Network
(CRYPTO: TNC) As cryptocurrencies are slowly gaining public adoption, networks are quickly becoming congested and as such, scaling has become a core concern for the developers. Trinity is to NEO as the Lightning Network is to Bitcoin, and as the Raiden Network is to Ethereum. It will allow for real-time transactions with low fees and privacy. It’s NEO’s off-chain scaling solution which will allow for microtransactions and high-frequency privacy transactions. It was founded by David Li, who led NEO’s overseas token sale campaign and envisions Trinity attaining mainstream adoption and building a strongly decentralized platform for payments. With more than 30,000 people signing up for the whitelist and crashing the NEO network, Trinity has most certainly demonstrated the need for NEO's scaling. (Its whitelist has since been closed.)
Cringy Kraken: "Yes, this is our new record for downtime since we launched in 2013. No, we're not proud of it."
One of the most recent debacles the crypto community's been facing has been the good old exchange debate: to centralize or decentralize. And we're starting to get some signs that the answer may not be the exchanges we're using today. Kraken, the San Francisco-based crypto exchange, went dark for over two freakin' days to install a new trading engine after giving their users only a few hours notice. Even though the exchange's offline updates were only supposed to last two hours, Kraken's website was down for over 48 hours, with the company choosing to send their developers home to "rest" after less than a day of the site being down (ever heard of Red Bull, guys?). Naturally, this down period happened during the bear market, preventing Kraken traders from selling off any tokens they had as the market began spiraling at the end of last week. The exchange went live again on Saturday, and fell victim to a whole range of online responses. On the plus side, Kraken's apology now includes zero trading fees for all clients for a month...so that's some kind of a win.
If the Kraken Exchange isn't working perfectly when I wake up tomorrow morning, I am calling the FBI to request that they get involved in this situation. Your recent status update is unprofessional and shocking. PS - I am 25+ year lawyer. #kraken @krakensupport @krakenfx
— Clay Crawford (@Crawfordtx) January 12, 2018
I got 100 ripple on my account , my life is at stake 😩
— Ripplesteeltje (@Be_Fit_Store) January 12, 2018
Kraken has never been hacked and still remains unhacked. We are one of the only exchanges that can say this with confidence. There is no doubt we dropped the ball on the upgrade, and we are ashamed. But all funds are still safe. Please visit https://t.co/vVBZXxn0I1 for updates.
— Max Kaplan (@maxekaplan) January 13, 2018
At this point, it seems that crypto enthusiasts must choose the lesser evil when it comes to exchanges. While Kraken may not be the most reliable site for withdrawing money, they're one of the few that have never been hacked. The market environment has been less than favorable the past several days, with the entire cryptocurrency market cap losing $100 billion in three days, and tokens such as Ripple making a minor comeback after the false reports of South Korea's government shutting down crypto trading. The rumors are still going strong, but our sources think that the likelihood of a whole shutdown is very unlikely. Phew.
Let's quickly catch you up on the global crypto situation: it's full of chaotic, fear-mongering, and some impressive loopholes.
Now that we've already established that South Korea is not banning crypto trading of any kind (and probably won't at all), let's take a short survey of what's happening in the world this week with crypto.
- China's back at it again with the weird new crypto trends, this time, it's Initial Miner Offerings (IMOs), which have sprung up after China cracked down on crypto and Initial Coin Offerings (ICOs). An Initial Miner Offering is the intent to buy mining hardware to mine specific currencies. Essentially, it's disguising ICOs under the pseudonym of IMOs.
- The central bank of Indonesia warned its citizens against buying any currencies that are not legal within the country, following up Bank Indonesia's previous statement that they won't accept Bitcoin (oh, burn!), and banning all FinTech firms using any kind of digital currency.
- The Russian Ministry of Finance is currently drafting a bill that would legalize crypto trading on government-approved exchanges (surprise, surprise).
- Venezuela wants 10 other countries to adopt its oil-backed cryptocurrency (which has some very serious issues in the form of likely money laundering), even after the country's Congress declared it illegal. Cringy.
- It's about time: Japan's DMM Group, a popular e-commerce and entertainment conglomerate, has launched its own crypto exchange, DMM Bitcoin. They're planning to launch another one for less experienced investors later this Spring.
Stupid article of the day: "Bitcoin and cryptocurrencies are just the Beanie Babies of the moment". I don't remember BBs having a revolutionary technology behind them, weird!
Is it creative or just...offensive? Japan's newest pop girl group is Kasotsuka Shojo, AKA "Virtual Currency Girls". They wear crypto-themed Mexican wrestling masks and sing about the benefits and detriments of investing in crypto.
Coin to Watch
Spend your crypto on...
one of Mark Bern's beautiful Pixel Art pieces. He's been accepting Bitcoin as payment since 2012, and makes some pretty compelling works of art. Email email@example.com for details.
— REAL_BTC (@Real_BTC) January 14, 2018