New privacy-oriented cryptocurrency, Grin (GRIN) has just recently gone live with a high price of $261 per coin after its first block was mined.
However, in the subsequent 24 hours, the coin lost as much as 98% of its value and currently trades around $7.5 due to the expansion of its coin supply.
This is a known phenomenon that has happened in the past in many other promising projects.
Grin (GRIN), a new cryptocurrency which employes the Mimblewimble protocol, has just crashed in a matter of hours. The coin managed to launch its MainNet only days ago, and while its initial value exceeded $260 per coin after its first block was mined, it lost over 98% of its value in less than a day.
Grin Price Chart, Source: CoinGecko.com
Grin is an innovative, new privacy coin which provides users with a certain level of privacy and anonymity during their monetary exchanges. Grin has governance which can be compared to the cyberpunk ideology; it encourages a community-driven decentralization. The developers are volunteers, and there is no ICO.
Grin is utilizing the Mimblewimble protocol which combines two concepts. The first concept is a Confidential Transaction. A confidential transaction encrypts the value of the transaction, so it is not visible to anyone outside the participants of this specific transaction. The other concept is the Cut-Thorough. In Cut-Through the transactions are merged inside a block, so all intermediate transactions are removed. This concept significantly reduces the size of the blockchain which makes its storage much more scalable.
Why did the Grin value drop?
Grin is a coin that received a lot of attention and hype during its development, and the excitement about the coin only increased as the launch date approached. As a result, as soon as the first block was mined and Grin coins appeared in circulation, the huge demand launched its value to extreme heights. However, as the mining continued and new coins were generated, the supply expanded and the coin started rapidly losing its value.
The current price drop does not mean that the quality of the coin is bad. Instead, the massive demand by those who studied it and followed its development in recent months indicates that the crypto community very much appreciates the coin.
Grin team wanted to position Grin as a real currency and less as a store of value. In contrast with Bitcoin were there is a finite amount. Grin will have an infinite amount of coins with a linear supply schedule. This means that inflation as a percentage of existing supply is very high in the early days but continually lowers over time. In theory, converging to zero percent, but it will never get there.
As mentioned, the initial hype brought the coin’s value to as much as $261.65 when the coin first emerged. At the time of writing the sharp drop which followed has reduced the value of Grin to $7.5.
Grin price change pattern was had already been witnessed
Ever since the hype about Grin was noticed, it was logical that its price would likely skyrocket as soon as it hits exchanges, only to drop down after more coins are generated, which is precisely what investors have witnessed in the previous 24 hours.
However, Grin still received a lot of attention thanks to its privacy features and improvements that allow it to operate more efficiently than some of the older cryptocurrencies. Despite the price drop, a lot of investors remain optimistic about the coin.
Other coins such as Monero, Zcash, and Ravencoin had a very similar pattern to Grin. The inflation rate was very high in the early days of the coins. Therefore, the price dropped until the inflation ratio decreased. From that moment, the fundamental analysis of the coin takes control and moves the price up.
Don't get burnt by MimbleWimble hype.
On the dawn of @grinMW's MainNet launch, we're witnessing the birth of truly fungible, trustless P2P cash.
Despite the long term promise of $GRIN, short term prospects of fair launch PoW coins are grim.
It appears that the cryptocurrency market is mostly moving sideways throughout the first weeks of 2019. Since the start of the year, it has lost about $4 billion which represents a little less than 4 percent of its market capitalization. In general, though, except for the few more severe movements a few days ago, the market is mostly moving sideways.
However, a relatively wide group of mid-cap altcoins have seen substantial spikes over the last few days, begging the question – is altcoin season 2019 here already?
What is an Altcoins Season?
Altcoins Season is a term mainly used among crypto-oriented online communities on social media, to describe a period in the market cycle when altcoins experience a substantial spike in their value against Bitcoin (BTC), which usually also spikes the USD value of the coin.
Throughout this period, it’s not uncommon for many altcoins to enter a reasonably parabolic state, enabling them to grow at unparalleled rates.
Now, it’s important to note that this is generally an anticipated period in the market cycle because it can grant serious profits to the coin holders. At the same time, though, it can also be disastrous for those who are unable to time the market precisely, causing them to buy “the top” – to purchase an altcoin at its peak value and stay with the bags. This is also referred to as pumps and dumps.
Someone said once that Doge is the official opener of the Altcoin season. As can be seen, Dogecoin didn’t move much over the past days.
So, is the first Altcoin Season of 2019 here already?
Let’s have a look at a few top-performing altcoins as of the time as of writing this post:
Leading the march is Apollo Currency (APL). It’s currently 109.17% more expensive than it was yesterday. It’s worth noting that the project’s Twitter’s feed is full of announcements which may have triggered the price increase. For example, they announced an integration with cryptocurrency wallet Bitfi.
The second project which went through decent gains over the last 24 hours is Augur (REP). REP is currently up 32.69 percent. However, at some point during the previous 24 hours, it was up with more than 65 percent. The rapidly declining price might signal for a pump and dump move. There was a recent announcement on the project’s official Twitter page that they’ve launched some updates of their app.
Tierion (TNT) is another altcoin that went up 100% yesterday. However, it’s currently trading in the negative compared to yesterday’s price, signaling that it’s most likely a pump and dump.
Loopring (LRC) is currently trading about 20% in the positive. No apparent news might have triggered the increase, as LRC rocketed with more than 60% yesterday. Most of it is going away, however, which might yet be a signal for a pump and dump.
At the same time, looking at the top-20 altcoins, none of them had shown any significant signs of a rally. This is perhaps a sign that an altcoin season is yet to be seen in 2019. Additionally, for it to be categorized as an altcoin season, the period should see a decrease of Bitcoin’s dominance index. Not only hasn’t it decreased – in January it has marked a very slight increase of about 0.7%.
Bitcoin dominance: The relation between Bitcoin’s market cap to that of the entire cryptocurrency market cap (in percentage).
Over the past 24 hours since our previous price analysis, Bitcoin has been moving sideways, with not much of a change.
However, as time goes by and buyers are not showing up, weakness can be witnessed around Bitcoin. Some other signs could also signal on a higher chance for a coming up breakdown following these sideways movements.
Looking at the bigger picture for the short-term: from above, the $3700 serves as a key-resistance including the daily 50 days moving average line along with resistance line. From below there is the $3480 – $3500 area, which is the weekly low.
Both mentioned resistance and support levels were tested twice during the past week. We can assume that the next time the levels will be tested we will see a breakout in that direction. As of now, it seems more likely that $3500 will be tested next, but in crypto, you never know.
Looking at the 1-day & 4-hour charts
As said before, from above, the next resistance levels are $3600, $3700 (MA-50 1-day chart), $3750 (4-hour MA-50 and MA-100) and $3850.
From below Bitcoin is getting supported by an ascending trend-line nearby, before the $3480 – $3500 weekly low. The next support levels lie at $3400 and beyond – $3300.
The Daily Chart: The RSI indicator is still on top of the major support line at 43. This could be a positive sign unless it will break down shortly.
As sideways action goes by, the trading volume is very low.
I’ve promised signs of weakness, so looking on BitFinex’s open short positions, the open positions (21.9K) are at their lowest point since Nov.18, while long positions are slowly climbing up. As we know, this is usually a set-up for a long squeeze. The last time we’ve seen this set-up occurred seven days ago when Bitcoin ended up dropping more than 10% on that day (losing the $4000 support, recording a daily low at $3503 Bitstamp).
The phrase “Mimblewimble” has been trending in the crypto community in the last few weeks. If you are a Harry Potter fan, you have probably come across this word. Mimblewimble is the tongue-tying curse that binds the target’s tongue to keep them from talking about a specific topic or subject.
Mimblewimble is a famous phrase in the crypto world as it is the name of a newly trending protocol. The Mimblewimble protocol relies on strong cryptographic primitives. Therefore, it provides an excellent framework for a blockchain that has good scalability, privacy, and fungibility.
Today, we are going to explore this innovative protocol. We’ll talk about what it is, how it works, its main applications, and the top players who’ve already implemented it.
What is Mimblewimble?
Tested for decades, Mimblewimble uses elliptic-curve cryptography that requires smaller keys than other cryptography types. In a network that is using the Mimblewimble protocol, there are no addresses on the blockchain, and the network’s data storage is highly efficient.
Mimblewimble needs about 10% of the data storage requirements of the Bitcoin network. This makes Mimblewimble highly scalable for storing the blockchain, significantly faster, and less centralized. Furthermore, the nature of the protocol allows for private transactions that are highly anonymous (more about this later).
The birth of Mimblewimble
Rejoice, Harry Potter fans! Another reference is coming from the movie fan world. The Mimblewimble Whitepaper was first published on July 2016 in the Bitcoin research channel under the anonymous author name of Tom Elvis Judisor – the French name for Voldemort.
Soon after the whitepaper was published – at the end of 2016 -, another anonymous user with the pseudo name “Ignotus Peverell” (the original owner of the invisibility cloak from the Harry Potter universe) started a Github project with the application of the Mimblewimble protocol. This project is called Grin, which released its mainnet on January 15, 2019. There’s also another implementation of Mimblewimble, Beam, that has been already released. We will talk about Grin and Beam later in this article.
How does it work?
To understand Mimblewimble, we’ll first have to explain Bitcoin’s UTXO (unspent transaction output) model. If you are paying with fiat – using the Alice and Bob example below. If Alice gives Bob 1 USD, it will look like this:
Alice: -1 USD
Bob: +1 USD
It’s not the same in the Bitcoin network. BTC transactions are made of several inputs and outputs that go from the sender to the receiver. If you’ve checked your recent Bitcoin transactions, You’ve probably seen both inputs and outputs on the website of the blockchain explorer.
So, Bitcoin works as follows. Alice wants to send 1 BTC to Bob. Instead of just deducting one Bitcoin from Alice’s wallet, the network bundles up multiple inputs from previous BTC transactions that were sent to Alice to equalize the one coin Alice sends to Bob. Therefore, this Bitcoin transaction could look like this:
Alice: – (0.1+0.25+0.35+0.3) BTC where A+B+C+D are all inputs that have been bulked up
Bob: + 1 BTC
In this example, Alice’s 1 BTC was made up of four inputs. But there are cases in the Bitcoin network when one transaction has hundreds of inputs. Furthermore, if the sum of the inputs is greater than the transaction amount, the transfer will create an additional output. This way, the first output will include the exact amount that will go to the receiver, and the rest will be returned to the sender. As every transaction has to be individually signed by wallet software, the network has to process tons of data. This process is highly inefficient.
This is the point where Mimblewimble comes into the picture. As mentioned before, the protocol proposes a much more efficient system, eliminating inputs and outputs. The UTXO model is replaced by one multisignature for all inputs and outputs which are called Confidential Transactions. If Alice wants to send Bob a coin, both Alice and Bob create a multisignature key that is used to verify the transaction.
Confidential Transactions use the Pedersen Commitment scheme; there are no addresses. Instead, the parties share a “blinding factor”. The blinding factor encrypts the inputs and outputs of the transaction along with both parties’ public and private keys. This blinding factor is shared as a secret between the two parties who were engaged in the transaction. Due to the blinding factor replacing addresses, only the two parties know that they were involved in a transaction. This keeps the privacy of the network at a high level.
The Pedersen Commitment scheme works as follows. Full nodes deduct the encrypted amounts from both the inputs and outputs, creating a balanced equation that proves that no coins were produced out of thin air. And during the whole process, the node does not know the actual amount of the transaction.
The only verification needed in the Mimblewimble protocol is to check that no new coins were created and that the parties taking part in the transaction have ownership of their keys. Both verification processes use the blinding factor to keep the transaction value private. Let us show you the process:
5+5=10 — 5+5-10=0
The above simple example shows that no new coins were created – indicating that the net balance is zero.
A secret number (10) – the blinding factor – is added to this calculation, which is multiplied by all variables. This is used to obscure the original values.
In this equation, both the blinding factor – which was 10 in the second equation – and the values remain private while still allowing others to verify that no new coins were created in the transaction.
In Mimblewimble, the blinding factor is a combination of the public and private keys. This way, in addition to proving that no new coins were created, the parties can prove that they are the owners of their keys.
The parties of the transaction are both given a multisignature header at the end of the transaction. This multisig header consists of all the inputs and outputs of the transactions that are merged.
The important feature of Mimblewimble regarding scalability is “Cut Through”. A single block consists of hundreds of transactions as well as plenty of information that needs to be stored on the blockchain. However, these blocks can be compressed with Mimblewimble’s Cut Through feature as a large part of the info can be removed from the blocks without risking the security of the blockchain.
Here’s a simple example:
Alice sends 1 BTC to Bob.
Bob sends 1 BTC to Charles.
In this case, a typical block has two UTXOs. The first UTXO will hold the input for that 1 BTC which reflects how it got to Alice. The output for the first UTXO is the result of the transaction, which verifies that the Bitcoin is now owned by Bob. The second UTXO consists of the output of the first UTXO – which is now the input of the second UTXO – and the output of the second transaction to Charles.
This means that Mimblewimble eliminates the output of the first transaction and the input of the second transaction. So, we’ll only have one input and one output – that verifies how Alice got this 1 Bitcoin and how Charles received their 1 BTC -, instead of having two of each.
This compresses the size of the blockchain, making Mimblewimble much lighter regarding the data storage.
Grin and Beam vs. Zcash and Monero
As of January 16, 2019, two ASIC-resistant coins have implemented the Mimblewimble protocol. Grin has been in development since late 2016. The developers launched the mainnet on January 15, 2019. On the flip side, Beam already has its working mainnet.
hile the two coins use the same protocol – Mimblewimble -, they have grand differences. Beam has a corporate structure; the company has collected VC funding and hired a development team, which allowed them to win the development time race against Grin. Beam’s Foundation relies on the part of the block rewards it gets to support the development of the network. On the flip side, Grin has governance that is similar to the cyberpunk ideology that empowers a community-driven decentralization. There’s no ICO, token pre-mine, and the developers are volunteers.
The two coins differ in usability and audiences too. Beam has a more professional stance in regards to the cryptocurrency’s use-cases; the team has built a simple wallet interface that is aimed at being user-friendly, with implementations for different operating systems, including Mac, Windows, and Linux. This way, the ordinary crypto enthusiast can access the Beam blockchain. On the other hand, Grin is not so user-friendly, because the coin only offers a command-line wallet which is accessible by more technical users.
Grin is using the Rust programming language, while Beam was coded in C++. This is not a significant difference between the two cryptos. The same can’t be said of the economic models. While Beam’s goal is to be used as an anonymous store of value, Grin developers argue that Grin should be used as a “currency”, instead of a store of value. Grin supporters don’t want to “unfairly reward” early adopters, they want to increase adoption instead.
In regards to mining, both cryptocurrencies use the modified versions of the Equihash algorithm. While both coins are ASIC-resistant, their goals are different. Grin seeks to fully implement their version of Equihash (Cuckoo Cycle) in two years, while Beam wants to use an ASIC-resistant mining algorithm for 12 months, to give GPU miners a head start.
Now, let’s see how these two coins compare to the three most popular privacy coins: Zcash, Monero, and Dash. According to critics, Zcash’s ring signatures and zk-SNARK’s are too computationally intensive, which results in slow and expensive transactions (compared to Beam and Grin).
Monero uses “mixins” to make transactions private. However, according to an analyst, 64% of all inputs do not contain mixins, so those transactions are not private. Other researchers argue that about 80% of Monero transactions could be traced.
And finally, Dash is considered the most centralized of all privacy coins, which makes the cryptocurrency less private. Though Dash has advantages in regards to scalability, people who want to remain entirely anonymous will be discouraged from using the coin because of its increased centralization.
While Monero and Zcash are popular privacy coins that are widely used in the crypto community, their networks can be improved with new technology, such as Mimblewimble.
If the creators of the coins’ (which can include non-anonymous currencies, such as Bitcoin) thoroughly analyze and follow the development of Grin and Beam, cryptocurrencies can become more private and anonymous again.
Not much has changed since our last price analysis for XRP: If we take a quick look over the BTC chart, we can notice that in the previous few days since January 11th, BTC has been trading around the 0.618 Fibonacci retracement level, which acted as a support level.
XRP chart is trading the same and is currently getting supported by the 0.764 Fibonacci retracement level.
As we anticipated in our previous analysis, XRP had dropped precisely to the $0.31 price level where it found support and bounced back 7.5% to the $0.34 price level. From there, it got rejected and tested the support zone one more time.
Looking at the 4-hour chart:
XRP is currently trading at the $0.327 price level while the 55 EMA is acting as a short-term resistance level.
In case of a bullish break-out above the 55 EMA (the yellow lone on the attached chart), XRP could re-test the $0.35 price level at the middle part of the trading-channel, the point where the 200 EMA (the white line on the attached chart) is awaiting as resistance.
On the other hand, if XRP breaks below the $0.31 support level, then the next target could be found at the $0.2935 level or even lower at the $0.277 support level which is the lowest price point of the last decline.
The RSI indicator moved back into the neutral zone in the middle part of the channel after a drop to the oversold zones.
Notice that the BTC chart is currently showing lack of strength and in case that the bears manage to pull the price of BTC down toward the lower support levels, then it will affect the all crypto market, as always.
About $5billion remain out of the $24.2 billion raised due to loss of coin value.
Billions of dollars worth of coins remain in ICO founding teams wallets
The data highlight the need for lockup clauses or vesting schedules to ensure founders are motivated to complete projects post funding
BitMEX recently published a report in partnership with Token Analyst detailing the whereabouts of the $24.2 billion in ICO tokens issued (currently worth about $5 billion after the market crashed).
The report details a lot of interesting points about the money raised from this crazy fundraising period:
About $5 billion remain out of the $24.2 billion raised due to loss of coin value. However, that is still $5 billion worth of tokens that ICO teams currently own, of which many would say was raised out of thin air, or based on lofty expectations to revolutionize industries with concepts that were not yet fully fleshed out and could never be realized.
Of this $5 billion, about $1.5 billion in gains were realized from selling these tokens while the market was still healthy.
USD values of these tokens are subject to scrutiny because liquidity was and continues to be an issue for large ICO token holders. It’s more likely that a significant portion of the $24 billion raised was either kept in ETH or transferred to Bitcoin, where it may have stayed long past the time in which the market was healthy (some funds may have been transferred to stable coins like Tether).
Veritaseum and Noahcoin, two cryptocurrencies that don’t seem to be gaining much attention these days, each issued over $4.5 billion in tokens to team-controlled Of the ~$4.8 billion issued by Veritaseum, the team experienced a ~$3.1 billion loss in value.
In fact, the top 10 proportional losses in the value of coins in team-controlled address clusters was an average of ~95%, with SALT losing ~97% of its value.
Huobi Token seems to have been the wisest of all ICO projects, transferring out over $350 million (more than half) of the ICO funds it raised out of team-controlled wallet clusters.
Today, Veritaseum still has the most significant current value of coins in team-controlled address clusters, at slightly over $1.5 billion.
Source: Bitmex Blog
An Opportunity For The ICO Issuers To Get Rich From Air
Ultimately, the report points out what many had already suspected about the ICO market, which is true for the majority of founders. It provided an opportunity to enrich themselves by dropping their brand-new tokens to the market in exchange for ETH, driving the price of their self-issued tokens up, as giving them access to more ETH that could be held or cashed out for BTC or USD.
The report also highlights the complete lack of lockup clauses or vesting schedules, which are restrictions placed on founders in traditional markets to ensure that their goals are aligned with those of their investors.
Another goal of the lockups is that they cannot be rewarded with wealth before doing the hard work it takes to develop a revolutionary new technology solution that positively impacts the market.
Instead, the data shows us that in a free fundraising market, what we get are hundreds of issued tokens with no real value assigned, no concrete plans to achieve real value and minimal prospects of actualized gains.
Britain’s protracted and problematic Brexit from the European Union, coupled with China’s falling exports and America’s record trade deficit, has deepened fears of a recession at the start of 2019.
Those looking beyond the doom and gloom believe the case for universal basic income (UBI) is getting stronger by the day – and now technological advancements are making it a viable option, moving it from theory to reality.
UBI is a revolutionary economic concept whereby every individual is granted a fixed, minimum wage to cover basic needs. With the threat of global financial crisis, projects that explore distribution mechanisms to assist the poorest in society are gaining interest and support.
For instance, GoodDollar, a research hub that is experimenting how decentralised cryptocurrencies and blockchain technology may enable models based on UBI with the central aim of reducing global wealth inequality, is generating interest from all over the world.
In mid-January, French crypto-finance website VideoBourse spoke at length with Yoni Assia, eToro Co-Founder and Chief Executive, who launched GoodDollar at Web Summit in Lisbon in November 2018.
GoodDollar Official Announcement - Yoni Assia, Web Summit Lisbon, Nov 07 2018 - YouTube
“GoodDollar is a non-profit project eToro is supporting,” said Mr Assia in the VideoBourse interview, acknowledging that his multi-asset investment platform has committed an initial $1 million. “The idea behind GoodDollar was that there needs to be a disruption to how money is being distributed and generated.
“One of the biggest issues in the world is a very simple thing: the rich get richer and poor get poorer. That leads to a growing inequality in society, and eventually that leads to very bad things. The way the system works leads to inequality – it’s how money is being distributed, and how money is being generated.”
Mr Assia explained: “For example, let’s assume interest rate plus inflation is 10 per cent a year. We know that 10 per cent of the global population own 90 per cent of the wealth. So 9 per cent of the 10 per cent generated in interest rates would go to the richest 10 per cent. Meanwhile, the remaining 1 per cent would go to the other 90 per cent of the population.
“That’s basically just because of how interest rates and inflation work, and that is because money has never been on the blockchain. If you could create mechanics within cryptocurrency that creates better wealth distribution potentially you could improve significantly inequality. By making the world more equal then more people can participate in the economy.”
Hence the launch of GoodDollar. In the months leading up to the announcement at Web Summit, a growing team of digital pioneers, economists and builders started experimenting and exploring what might be possible in this space, at the intersection between UBI and blockchain. The early momentum has been very encouraging.
In late November, GoodDollar helped establish an OpenUBI ecosystem with a number of other partners. The OpenUBI was launched to foster collaboration and discussion around UBI and its technological implementation. There is an OpenUBI meet-up in Berlin at the end of January, and in February there will be a GoodDollar hackathon event at eToro’s Israel office.
“A lot of our efforts are going into researching how to build GoodDollar in a purely decentralised way,” Mr Assia continued in his VideoBourse interview. “On the one hand we’re trying to build a simple user interface so people can connect to it … on the other hand we want to build something that’s truly decentralised. We understand that for something like this to succeed, it needs to scale on a much wider scale than eToro.”
Live avec Yoni ASSIA, PDG d'eToro : GoodDollar / eToroX / Evolution des Crypto Monnaies en 2019 - YouTube
After a positive first few months, there are many more exciting things to look forward to in 2019 for the GoodDollar project. Mr Assia, who will be speaking at Paris Fintech Forum 2019 later in January, revealed that “we’ll be launching the first GoodDollar experiment within the next six to nine months”.
He added: “We definitely look at this as something that’s experimental, based on code and a lot of research that we’re doing. We have a few academics on the team, and experts in legal and regulation and economics.
“I am a very big believer in a new type of innovative asset – like GoodDollar – that creates a paradigm shift in terms of how we think about money, and how money is being generated.”
As the markets remain volatile and global financial uncertainty looms, projects like GoodDollar could well revolutionise how money is distributed at scale – and sooner rather than later.
Join GoodDollar. The project needs builders, scientists and experts in identity, privacy, and financial governance, as well as philanthropists and ambassadors. Email GoodDollar at email@example.com, contact us via our social media channels (Twitter and Telegram), or join the OpenUBI movement.
Following our previous price analysis, the significant Stochastic RSI oscillator had crossed over at the oversold area.
This led to the anticipated positive correction, which produced a nice move to re-test $3700 tough resistance area. The mentioned resistance includes the 4-hour chart’s 200 days moving average line and the daily chart’s 50-day moving average line.
From there, Bitcoin got rejected, and along with the bad news which came from Ethereum, broke down the $3600 one more time, to find support on the ascending trend-line.
Looking at the 1-day & 4-hour charts
Bitcoin is now trading between a descending and an ascending trend-line (marked in orange on the following 4-hour chart), which forms up a triangle. The apex of the triangle is nearby. Hence, we do expect a move to either direction during the next couple of hours.
From above, the next resistance levels are $3600, $3700 (as described above) and $3800 (along with the 50 days moving average line of the 4-hour chart).
From below, $3480 – $3500 is the weekly low. The next support levels lie at $3400 and beyond – $3300.
The Daily Chart: The RSI indicator found support on top of the 43 RSI line. This could be a positive sign unless it will break down shortly.
The trading volume is still pretty low. However, the average volume is still twice the volume traded before the breakdown of the $6000 level.
BitFinex’s open short positions dropped again to 22.4K, which is the lowest level since November 14 (the day when Bitcoin broke down the $6000 support line). A long squeeze coming up? Remember – when shorts are at their high – expect a short squeeze, and vice versa. This is why the bulls don’t like the current situation here.
Ethereum Constantinople upgrade delayed due to ‘reentrancy’ attack vulnerability discovered by ChainSecuity
This is the second time the Constantinople upgrade is delayed
Another hacking scandal has plagued the Ethereum community, this time on the eve of the highly anticipated Constantinople upgrade.
A smart contract auditing firm named ‘Chain Security’ discovered an “unwanted side effect” to the new Constantinople upgrade; mainly that it opens the door for ‘reentrancy attacks’ when using Solidity smart contracts.
Hackers could exploit the systems ‘secured treasury sharing service’ to continuously send funds to themselves unnoticed. The vulnerability is made possible because the code simulates a secured treasury sharing service, meaning that two parties can jointly receive funds, decide on how to split them, and receive a payout if they agree.
The attacker exploits the treasury sharing code by making one address their contract, and the second address their account. The attacker then deposits some money and calls the attack function on their contract. Next, they use the split function in a way that allows their contract address (the first address) to receive all of the funds.
There are a few other more complicated steps in between, but what ultimately happens, in the end, is that the attacker can steal other people’s ETH by reentering the same split function multiple times without others ever being updated about the unauthorized transfers.
As a result of this discovery, Ethereum co-founder Vitalik Buterin, as well as other core developers decided that they would not execute the hard fork on its scheduled date of January 17th at 4 AM UTC.
Similarities with 2016 DAO Hack
It should also be noted that this vulnerability resembles the one discovered in the DOA hack of 2016, which lead to the Ethereum blockchain hard forking to create Ethereum Classic and Ethereum.
This is not the first time the Constantinople upgrade was delayed. Last year the upgrade was postponed due to issues on the Ropsten Testnet. So far, no new date for the upgrade has been announced.
It’s been a routine week in the crypto market. Bitcoin’s volatility continues to shake the market up and down, and it seems that it is still leading the market, and a cryptocurrency that manages to take its place as “better than Bitcoin” has not yet been born.
This week we saw a decline of 13% on average on the major cryptocurrencies. Most of the leading Altcoins have dropped, but have not reached the floor yet, in what looks like a technical correction. Most alternative currencies seem to be stabilizing, although some of them seem to have changed the trend in trading against Bitcoin. This can also be clearly seen in the dominance of Bitcoin in the market.
The first two weeks of 2019 can be summed up as very weak in terms of trading with a low trading volume that does not remind you of the hype around the same date last year. However, even though the weaker hands have evaporated from the crypto space, developments continue as usual, and we expect to see new trends such as the stable currencies we saw in 2018 or the STO phenomenon that is raising its head, and the results of these trends have not yet been fully seen. Also, one has to remember that the projects where money was raised during the ICO craze may still surprise with useful products that will change the market as it looks today.
MimbleWimble is gaining momentum. Last week, Beam was launched based on the new technology that excited the crypto community and today a parallel project will be launched that meets the name Green and uses similar technology. The path of these projects is long and full of question marks and bugs, as we have seen at the beginning of Beam. However, it is quite possible that such projects will awaken the market.
In conclusion, the Crypto market has lost a lot of its value in the past year, but is still alive, kicking, and growing up. There are those who mention the Dot-com bubble of 2001 as an analogy that proved that the survivors and the visionaries were the ones who led the market later on.
World’s 23rd Richest Man Invests in Cryptocurrency Exchange Bakkt’s First Funding Round. Li Ka-Shing, a Hong Kong billionaire, has been identified as one of the notable investors in Bakkt’s first funding round which ended on December 31, 2018.
Li Ka-Shing. Photo by Reuters
Cryptopia Admits Being Hacked: Stolen Amount is Unknown, a $2.5M Transaction Could be Revealing – The details of the hack, including the stolen amount, remain unknown for the moment, although there are indications that the theft includes nearly $2.5 million of Ethereum coins.The exchange has gone offline since then for investigation.
Russia to Buy Billions of Dollars Worth in BTC Next Month, Russian Economist Says. As the unilateral economic sanctions war between Russia and the US continues, Russia is reportedly considering the conversion of $470 billion fiats into Bitcoin.
Ethereum Classic’s 51% Attacker Has Mysteriously Sent Back $100,000 To Gate.io Exchange. Strange things are indeed happening in the crypto space. The anonymous hacker behind the recent Ethereum Classic 51% has reportedly returned $100k worth of ETC to crypto exchange Gate.io for unknown reasons.
Chinese Mining Giant Bitmain Is Closing Another Overseas Office. Crypto winter has hit Bitmain once again, as the mining company forcibly shut down two offices in less than 40 days citing “ongoing business adjustment.”
Steemit Social Network Bans Users Amid Censorship Resistance. The supposedly decentralized social media platform has banned some of its users for trying to leak documents that contain what they tagged as “hidden truths of 9/11.”
Ethereum Jan.16 Fork Constantinople Upgrade: Everything You Need to Know. The most significant event in January – Ethereum Constantinople Upgrade – is upon us, and if you’re still confused, then here’s all you need to know about the upcoming hardfork.
Bittrex Opens OTC Desk Supporting Close to 200 Digital Tokens. The American crypto exchange has officially launched its over-the-counter (OTC) trading desk with support for 200 digital assets. However, only approved customers are eligible to trade with the OTC.