In what may go down as the least surprising news of 2018, Bitconnect is shutting their doors. This system has long been called a Ponzi scheme, though people continued to buy into their promises of easy profit for years.
In the announcement, the company said, “We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD” (Yes, that is the poorly written announcement)
They will continue to operate as a wallet service, news source, and educational site they say, though it is hard to imagine many people will want to use this system after this.
Their coin, BCC, has so far dropped from about $425 down to $31.80 as of this writing, and will likely continue to plummet since there is very little reason for anyone to want to hold this coin at this point.
While this is unfortunate for anyone holding BCC or using the Bitconnect system, it really was inevitable, and hopefully those involved knew the risks. In the crypto-industry, there are many ‘too good to be true’ ‘opportunities’ out there, and as we are learning, they almost always fail. This is why we here at Decryptofied continue to recommend all investors do their own research and only invest in coins that have value and potential unless you are simply attempting to day trade.
The popular sock trading platform, Robinhood, has announced that they are launching an app that will allow users to buy certain cryptocurrencies. At least to start with, they will be allowing customers to buy Bitcoin and Ethereum, but the selection will likely go up from there. This puts them in direct competition with CoinBase, which is very popular but often has a lot of issues due to their inability to keep up with demand.
CoinBase also has significant fees involved, which can quickly eat away at the average investor’s money. Robinhood’s new system won’t have any fees associated with buying crypto other than those that are imposed by the exchanges or the network. This can save users a lot of money over time, and make it much easier to start buying small amounts of crypto on a regular basis.
The system is available as a ‘monitoring’ tool only at this point, but in February it will open up for live trading. Another limitation at launch is that it is only available to residents of California, Massachusetts, Missouri, Montana and New Hampshire. This is where Robinhood is licensed, but they are working to expand the service to other states, and hopefully globally, as quickly as possible.
This is just one more example of how the crypto investing industry is quickly catching on, and becoming much more mainstream.
EtherDelta is one of the best-known exchanges for cryptocurrencies because of the fact that it has so many different coins available, and you can trade completely anonymously. With millions of dollars’ worth of assets being traded on the platform each day, it is one of the most popular options as well. Unfortunately, it looks like it has been hacked.
According to early reports, EtherDelta’s DNS servers were hacked, which allowed the hackers to direct all traffic to a fake site, which would gather public and private keys from users. As soon as the keys were given, all their assets would be transferred to the hacker’s address.
As of this writing, they have stolen at least $165,000 in crypto-assets.
EtherDelta confirmed the attack on Twitter, where they said, “Dear users, we have reason to believe that there had been malicious attacks that temporarily gained access to @etherdelta EtherDelta.com DNS server. We are investigating the issue right now – in the meantime please DONOT use the current site.”
As always, we here at Decryptofied recommend you do not keep any assets on an exchange unless you are actively trading. Move all assets to a hardware wallet, or a paper wallet, as soon as possible to avoid these types of risks.
DASH is a well-known asset in the crypto world, and one of the top 10 coins in terms of market cap. They are working to allow instant payments that will go through the blockchain. One of the best things about them is that they have extremely higher security, even for crypto standards. Anyone holding 1000 DASH coins will be able to operate as a Masternode as well, which many holders will love.
The coin has long been a strong performer, with a bright future due to it being positioned well to become an actual replacement (or more likely, a complimentary currency) to cash. It is very fast and easy to use, which gives it the same advantages as buying with a local fiat currency, and is designed to be fairly simple to begin accepting by businesses. The name itself, DASH, is for ‘digital cash’ which it really can function as.
While the real world uses for DASH make it a promising coin both in the short and the long term, there is something more immediate that make this a likely strong buy right now. We’ve seen Bitcoin rocket up over the past several weeks, even hitting $20,000 on certain exchanges. Litecoin then had its turn, making incredible gains of 200% or more. Ethereum even overcame their ‘cryptokitty’ issues to give very strong returns.
It isn’t like cryptocurrencies ‘take turns’ going up, but for lack of a better phrase, it is soon going to be DASH’s turn. It is currently trading around $1000, which is quite a bit lower than it was in comparison to Bitcoin. Many investors will likely see this as a great opportunity to ride this coin up as it stabilizes against Bitcoin. The fact that it is a strong concept even without factoring Bitcoin in makes it a real obvious choice.
I don’t have any specific price predictions, but over the next few days or weeks, we could see some real strong movement in a positive direction.
Patrick Byrne is the CEO of Overstock.com, an online retailer that is estimated to be worth between $1.5 and $2.5 billion at the moment. While he has done a great job at helping to build up this iconic online retailer, it seems that his real passion is in crypto. Overstock was one of the earliest major companies to accept Bitcoin as payment, but for Byrne it seems, that is just the beginning.
He has recently come out and confirmed that Overstock is looking at several different options for turning the company over to a new leader, so he can focus on blockchain related interests.
Specifically, Byrne told CNBC, “My goal is [within] 60 to 90 days we walk away from this.” When he leaves Overstock, he will be focusing on De Soto Joint Venture, a new opportunity that he is working on that is all about a blockchain-based global property registry. When talking about this new move he said, “we think we can change the world for 5 billion people.”
The options that he is looking at for Overstock are as follows:
Sell to a traditional brick-and-mortar business that could run the popular site.
Sell to a strategic investor. They have already had interest from a wealthy Asian investor.
Go with a private equity company.
Whatever happens with Overstock itself, it will be interesting to watch what Byrne does with his new focus on blockchain technologies.