TronWeekly

Crypto World News

You are here: Home / All Posts

All Posts

Lithuania Set to Issue Own Central Bank Digital Token

by

The first digital token backed by the central bank will soon be launched in the eurozone. According to the Reuters report on 2 July, Lithuania will be the first eurozone nation to issue a digital central bank token. The report notes that 24,000 digital tokens, dubbed LBCOIN, based on the blockchain, will be issued within a week.

Facebook Libra sparking CBDC activity globally

Crypto-friendly Baltic nation will issue LBCOINs as part of its plan to test central bank digital currencies and blockchain technology in day-to-day applications. The news of the launch of the central bank’s digital tokens follows the release of the Libra Whitepaper on Facebook. The development of the new Facebook Libra has forced central banks to accelerate their CBDC plans.

Moreover, the deputy governor of the Bank of Lithuania, Marius Jurgilas, while talking to Reuters on the new digital tokens said:

“No one in the central bank community was thinking about digital currency seriously before we realized that there is a legitimate threat that someone else will take our space… We need to provide society with what it wants.”

Central bank digital token to be exchanged for physical coins

In addition, the Deputy Governor noted that LBCOIN is identical to the central bank digital currency, which is fiat in digital version, issued and administered by the central bank. In particular, the digital tokens of the central bank will be distributed at €99 ($111.28) in a bunch of six. And the bands will have an attached image of one of the 20 individuals who signed the declaration of independence of Lithuania in 1918.

The Bank of Lithuania expects residents to trade a digital token with orders to create a specific set that can be exchanged for a physical silver con the size of a regular credit card. As stated in the report, the physical coin will have a nominal value of €19.18 ($21.55). The holders of LBCOIN may immediately exchange the digital asset with the Bank of Lithuania and the private blockchain infrastructure, as stated in the report.

 

China based Ebang International to Expand into Establishing Offshore Cryptocurrency Exchange

by

The spread of coronavirus has resulted in catastrophic consequences all across the planet, with several companies and organizations feeling the pinch. Cryptocurrency companies have also begun to diversify their portfolios in order to ensure their survival in the coming months.

Chinese cryptocurrency Miner Producer Ebang International Holdings Incorporated was the latest company to offer new services in the midst of a raging pandemic. Ebang claimed that an offshore exchange for digital assets would be launched in the third quarter of 2020 with the hope of expanding out of the Bitcoin ecosystem.

According to sources close to Ebang, the move would help dabble in a sector that was independent of the highs and lows of Bitcoin. Mining companies like Ebang generally depend on price variations for large cryptos like Bitcoin, which is not always a sustainable model. These companies only make a profit when the price of crypto is rising on a bullish ramp.

At the time of the press, Bitcoin traded for $9222.4 with a total market cap of $169.88 billion. A 0.65 percent price increase over the previous 24-hour lifted the daily trading volume to $15.99 billion. This stagnant price increase does not make much of a profit for a large company like Ebang Holdings. New reports on the Hangzhou-based rig maker showed that the new expansion rates could increase the revenue stream by 40%.

Ebang also plans to set up a crypto exchange outside the mainland of China, a road map for which it is still under construction. In a recent interview, Ebang Chief Financial Officer [CFO] Chen Lei stated that foreign exchange could contribute at least 10% to the current revenue stream. Despite new developments, Ebang registered a 14 percent drop in its IPO pricing, raising more than $100 million.

The company reiterated that its services would help counter Bitcoin’s volatility in the wake of the currency’s wild move over the past year. Ebang recorded gross revenue of $109 million in 2019, which is expected to exceed that benchmark by 2020. This predicted spike comes at a time when rivals like Bitmain and Canaan were focusing on a blend of AI and physical technology.

Ebang International also plans to list Nasdaq under the EBON symbol. AMTD Global Markets, Loop Capital Markets and Prime Number Capital are proposed to act as project lead managers.

The Tron ecosystem, SRs and Rewards Systems- How Companies like Cityuptake are Changing the Game

by

Over the last few years, the cryptocurrency market has changed, making it a point for users to leverage ecosystem features. Keeping this changed sentiment in mind, Tron and its affiliates have ensured that customers receive what they have promised with added value.

Cityuptake, one of the most popular companies in the Tron ecosystem, has made news a number of times because of its consistent reward delivery. The ability to actively leverage the Tron Super Representative ecosystem gives CU customers an efficiency that is maintained in a highly volatile cryptocurrency ecosystem.

The Tron Super Representative [SR] ecosystem is highly competitive, and each member is promising multiple benefits and rewards. Members of the SR ecosystem are acting as guardians of the Tron Blockchain. One of their main tasks is to ensure that the blockchain works seamlessly without any hindrance from investors or organizations. Cityuptake has gone beyond and beyond to make sure customers get what they promised when they entered the ecosystem.

Super Representative Rewards

The super-representative program has been a success for the Tron ecosystem, garnering appreciation from the Tron Foundation as well as its founder Justin Sun. Twenty nineteen was a landmark year for the SR world, with the implementation of proposal 27 and proposal 22 increasing the SR rewards to 16 TRX. At the same time, the rewards for the first 127 SRs increased to 160 TRX.

In order to make sure that both the SRs and the users involved are rewarded, Tron decided to donate 50 million TRX to the SR world. According to the Foundation, this donation would “help to strengthen further collaboration.” The 50 million rewards were divided between the 27 SRs that included members like Skypeople, Sesamesed and CryptoGuyInZA.

Alternative options in the Tron ecosystem

Decentralized applications or dapps as they are more popularly known works on the basis of basic applications on the blockchain. Since the start of the dapp concept, Tron has been on the podium, beating the likes of competitors like EOS and Ethereum. Tron’s surge in the dapp department has also made it possible to gain mainstream access, as some of the Tron dapps are now available on the Samsung App Store.

When it comes to risk tolerance, the dapps fall on the riskier side due to the way in which profits are based on user activity on the site. While some proponents of the concept claim that the rewards outweigh the risks, there have been instances in which many have lost their holdings due to volatility.

Cityuptake’s approach towards a more seamless reward system 

What sets Cityuptake apart from the rest of its competitors is its balance of risk and reward. An in-depth analysis of the Cityuptake ecosystem showed that over 13.22 million TRX had accumulated over the second week of June alone, with a gain of 3.08 per cent. This figure was noteworthy because the company’s trading desk overturned the reward gain dip in March, when the gain rate had dropped to 2.7%.

A healthy reward gain system makes it possible for companies like Cityuptake to bring more customers to their fold. For those who are not accustomed to the system, the Cityuptake token functions as a basic utility that opens doors to goods , services and the content of its parent company. Another reason why CU’s customer base has grown is the company’s stringent security and privacy watch. Each individual CU is backed by 1 TRX that can be used to gain rewards from the connected Super Representatives.

cu

 A basic reading of the reward gain percentage also paints a positive picture for Cityuptake. When it comes to the Cityuptake tradedesk, it is evident that its magnitude had rocketed up since inception.

traders

A projection of the current growth pattern shows even more benefits in the CU ecosystem with more rewards left to be reaped. The numbers shown are all for the benefit of the users with multiple options available to them in this rapidly developing cryptocurrency environment.

Companies like Cityuptake provide a safe foundation for trading but the onus is on the trader to conduct through background checks so that their capital is in the right hands. As the cryptocurrency ecosystem expands, companies like CItyuptake give users the chance to direct their holding onto the right path. This would pave the way for a safer and much more inclusive virtual asset world. 

Bitcoin Could Reach $500,000 Amidst U.S ‘Hashrate Wars’ : Max Keiser

by

Price forecasts are the basic commonality in the world of bitcoin and digital assets. Although most predictions are based on market indicators and analysis, at times various socio-economic or geopolitical events have an impact on the valuation of the BTC.

Speaking of extravagant predictions, popular financial analyst, and Bitcoin proponent, Max Keiser recently stated that a tussle between nations over the Bitcoin hash rate may eventually inflate Bitcoin’s valuation by more than $500,000.

In his recent segment of the Keiser Report, the analyst stated that the United States “hash-rate war” with Iran and Venezuela may create an extremely strong scenario where Bitcoin’s price may sky-rocket over $400,000-$500,000.

YouTube video

At present, China is the current leader in controlling the global hash for Bitcoin, amassing nearly 60 percent of it. Given that Iran currently owns 3 % of the world, Keiser believed that it would not be long before the U.S. dips its toes into the hashrate pool. He said

“Iran has already got 3% of global hash rate, so now I think Venezuela will get 3%–5% pretty quickly. And then at some point America will say, ‘We’ve got to enter the 21st century space race of mining Bitcoin,’ and then they’ll try to seek 20% of the hash rate, and then security goes up dramatically, and the price goes to $400,000, $500,000.”

For Keiser, Bitcoin is far-more important than a booming technology that transfers value. He believed that Bitcoin will leave a lasting impact on the wider society and establish a sense of financial freedom for its users. The influence of central banks on the larger economy could be broken according to Keiser, as he stated,

“The truth is if you want individual sovereignty, if you want justice, if you want uncensorable, unconfiscatable, indestructible wealth, there’s only one way to go — and that’s Bitcoin.”

Max Keiser’s previous $100,000 prediction update

Keiser has never been the one to shy away from preposterous price predictions as eight years back, he stated that Bitcoin will be worth over $100,000. Although the prediction has not panned out yet but in a recent interview with “Infowars”, Max Keiser decided to take his prediction up a notch and mentioned that Bitcoin will reach $400,000.

With the asset enjoying a rather turbulent year in 2020, it is highly unlikely that Keiser’s current prediction will come to fruition in the near future.

UK High Court Forces Cryptocurrency Platform Shutdown as Fraud Charges Emerge

by

Despite increased acceptance for the cryptocurrency industry, there are still some governments and mainstream institutions that have kept a close eye on the ecosystem. The spotlight was recently on the United Kingdom when the government shut down an online cryptocurrency trading platform for fraudulent activity.

On 30 June, the High Court in the United Kingdom proceeded to dissolve GPay Ltd for misleading investors and flouting capital controls. The company was formerly called Cryptopoint and had investors from the United Kingdom and several countries outside the jurisdiction of the ERU jurisdiction.

The initial complaints arose when customers were repeatedly asked to use GPay’s online trading platform through ads and banner placements. The biggest issue was that the company falsely claimed to be associated with big-shot entrepreneurs in the field. According to a release from the government:

“The company, which traded as XtraderFX and formerly as Cryptopoint, targeted people in the UK and abroad, advertising its services online and via social media channels. Following complaints, however, the Insolvency Service conducted confidential inquiries into GPay’s activities before investigators uncovered that at least 108 clients claimed they had lost in total just under £1.5 million while using the company’s online trading platform.”

Platform analysis showed that clients were faced with issues with their withdrawals if they did not participate in trading on a routine basis. David Hill, Chief Insolvency Investigator, had a few comments on the entire situation. Hill claimed that GPay had persuaded customers to part with substantial sums of money to invest in cryptocurrency trading platform.

The decision of the court was accepted by legitimate sources as this would prevent other investors from being affected by false pretenses. Initial investigation reports said that almost 108 clients had suffered losses of almost $1.5 million due to the organization. In some cases, clients have lost their capital despite having insurance cover.

GPay ‘s controversial turn of events has made other investors and companies sit down and take note of liabilities related to unchecked ecosystems. The UK Government has urged both new and existing customers to make thorough run-throughs whenever it involves hard-earned capital.

Ethereum’s High Fees over Bitcoin is not “Bullish” for Ether

by

Bitcoin and Ethereum are at the top of the digital asset industry, and regardless of the major difference in market caps, the respective communities continue to nitpick on each other’s performance. The Ethereum community is currently operating at an elevated level of optimism as the advancement of ETH 2.0 continues to pick up the pace.

Image

Now, according to a recent analysis by Glassnode, Ethereum’s blockchain is reportedly being used more than Bitcoin’s network as well.

The chart above illustrated that for the third straight week, Ethereum incurred higher transaction fees with respect to Bitcoin. Over the course of their co-existence, ETH fees were higher than Bitcoin’s only on a separate occasion back in May 2018.

While many began to run away from the above narrative, linking another bullish narrative to Ethereum, the background story behind Ethereum ‘s rising transaction fee might be entirely different.

Is Ethereum’s high transaction fees actually being used by ETH users?

A recent report covered an in-depth analysis of how ETH fees are distributed across various transactions. Over the past few years, user addresses have often been identified as EOAs. EOAs are defined as accounts that are controlled by private keys and do not have associated code with the blockchain. A higher percentage of users are usually EOA accounts.

Ehtereum 1

In light of that, the above chart indicated that only 34.2% of the network transactions were used by EOAs to transfer ETH, and only 10.7% of the total fees were spent on actual transactions in 2020. The above chart is clear evidence that a majority of ETH fees are haven’t been used for ETH transfers.

What about the other 89% transaction fees?

current fees dist 1

According to the report, a majority of the fees(52.4%) have been used in “other contracts” in 2020. These other contracts transaction do not utilize the functionality of ERC20 or ERC721 standards, meaning that ether has been barely used. The analysis further stated,

“USDT which has increased from virtually zero at the beginning of 2019 to currently almost 20%. Other ERC20 contracts amount to 12.6%, and ETH transfers between EOAs 11.5%. Zero-value ETH transfers to EOAs (1.9%), other stablecoin transactions (1.4%), and ERC721 contracts (0.8%) take a back seat.”

avg fees

Additionally, it was also noted that with respect to average fees per category, the most expensive transactions were zero-value ETH transactions sent between various ETH EOAs (Externally-Owned Addresses). Although it was common for zero-value transactions to take place in the ETH blockchain while initiating smart contracts, such high levels of fees were not expected.

Ethereum’s high transaction fee; not a good indicator of progress?

In the hindsight, it is legitimate to state that Ethereum’s blockchain is being used more in Bitcoin’s network but the above data would suggest an absence of positive implications for Ether tokens. With higher issuance of USDT on the Ethereum blockchain, the native token is currently facing a stagnancy in terms of valuation in its own parent blockchain.

Cardano Rules the Roost as Altcoins such as Bitcoin Cash and Tron Show Slow Bullish Movements

by

Over the last few days, the cryptocurrency market has been slow, with several of the top assets clinging to their previous support. Bitcoin, which was expected to hit the $10,000 mark, was still trading close to the $9000 range.

While bigshots like Bitcoin did not meet expectations at the beginning of July, other altcoins showed who the boss was. Bitcoin Cash, which held its 5th position on the charts, ensured that it would compete against its closest rival, XRP.

Bitcoin Cash

At the time of writing, Bitcoin Cash was trading for $223.61 with a total market cap of $4.125 billion. A 0.51 percent price increase over the previous 24-hours had elevated the daily trading volume to $1.127 billion. Many BCH supporters still expect a rise in the price after a strong performance in June.

Bitcoin Cash

The Chaikin Money Flow indicator for BCH showed that the amount of capital coming into the BCH ecosystem was much higher than the capital leaving the market. This signified a renewed interest in the altcoin industry as more developers joined the fray. The RSI was closer to the overbought zone now as more investors were holding onto their BCH rather than sell it.

Cardano (ADA)

The Charles Hoskinsion founded cryptocurrency has always claimed that it focusses on creating a wholesome ecosystem where users can easily transition from the mainstream financial world. The cryptocurrency has not had much success in 2020 when it came to price but it was still enough to keep it in the top 10 club. At press time, Cardano (ADA) was trading for $0.09 with a total market cap of $2.478 billion.

cardano(ADA)

Cardano (ADA) was one of the biggest gainers over the past day as the 10 placed cryptocurrency rose by a respectable 3.2 percent in the space of 24-hours. This also increased its daily trading volume to $190 million. IOHK and Charles Hoskinson have both stated that ADA will be used for technical purposes rather than being used as a form of transaction like XRP, ETH or BTC.

Tron

The Justin Sun founded digital asset has not had a great 2020 as the cryptocurrency is still struggling to break into the top 10 club after six months into the new year. Despite announcing various updates and developments, the cryptocurrency is yet to find its stride when it comes to the trading sphere. Currently, Tron was struggling to climb above privacy-oriented Monero which held the 16th place on the charts.

Tron TRX

Tron’s latest trade value was $0.017 and held a total market cap of $1.143 billion. A feeble 0.5 percent increase did not do much to elevate its status but its 24-hour market volume had climbed to $714.042 million. Although the cryptocurrency was not one of the best performers, hardcore Tronics still rallied behind the cryptocurrency and expected it to surge at any moment.

 

Wirecard to Resumes Operations After FCA Lifts Restrictions

by

The U.K. Financial Conduct Authority ( FCA) announced on 29 June that it would lift the restrictions imposed on the German payment firm Wirecard AG, allowing Wirecard to resume operations. The watchdog noted that it had provided a written agreement to Wirecard ‘s subsidiary, Wirecard Card Solutions, to resume its e-money and payment services, although some limitations remain.

The UK financial watchdog ordered the e-payment firm to halt operations on 26 June, following the submission by its parent company of an insolvency application in Germany. The move to lift the ban allows the users of the firm to access the financial services they have been locked out.

Wirecard’s clients can now access financial services

The limitations imposed on the fintech firm include not being able to dispose of any assets or money, not to run any regulated activity, and put a statement on its official website notifying users that it is no longer authorized to carry out regulated activities. Nevertheless, clients can now use their debit cards freely without interruptions. A statement by FCA reads:

“We know that some people may have faced difficulties over the weekend and we worked with DWP, HMT and the Home Office in order to help anyone suffering financial distress. Anyone who is still in difficulties should see our website for more details.” 

Insolvency proceedings

Despite the lifting of the restrictions by the FCA, experts suggest that the issue could have permanent damage to people’s trust in fintech firms. In particular, firms such as Curve and Anna rely on their e-money licenses to manage payments but do not hold banking licenses to hold client funds. The funds are instead ring-fenced with a third party financial institution.

Germany-based Wirecard has stated that it will continue to operate despite insolvency filings last week. The company also stated that it is exploring whether its subsidiary firms will also be required to apply for insolvency. In addition, the American subsidiary of the company which it acquired from Citigroup in 2016; stated on 29 June that it was looking for a buyer.

BHP Group Completes First Blockchain-based Iron Ore Trade with China’s Baosteel

by

According to a report by Reuters on 29 June, the BHP Group completed its first blockchain-based iron ore trade with China Baoshan Iron & Steel Co Ltd in a deal worth around $14 million. The transaction was carried out through a blockchain platform created by a Canadian-based technology company called MineHub.

Per the two separate statements by both MineHub and BHP Group, using blockchain technology, the spine that structures digital currencies like BTC and ETH would strengthen efficiency and transparency. However, the statements did not indicate whether the BHP Group had used blockchain technology in the past.

Blockchain-based iron ore trade scales down paperwork

The trade in iron ore involved a transaction linked to iron ore, a commodity that the firm regularly trades.  The MineHub blockchain platform was used to digitally process trading terms, exchange documents, and provide updates on real-time cargo transport.

Notably, the use of blockchain technology by BHP Group is part of the firm’s plan to digitize its commodities trading sector. According to BHP Group’s sales and marketing officer Michiel Hovers, blockchain technology will help scale down the burden of manual paper documentation processing.

Blockchain technology to enhance efficiency

In the past couple of years, commodities firms have been seeking blockchain solutions to save money. The commodities sector is known for its over-reliance on paperwork and large-scale documentation, which brings up other complications. According to Hovers:

“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.” 

The blockchain-based iron ore trade was the first of a string of transactions on the MinerHub Technologies Platform; involving outside partners. According to MinerHub Technologies chief executive Arnoud Star Busmann:

“Current pandemic events and fraud cases in the commodity trading industry are causing a step-change; in the adoption of digital solutions.”

Furthermore, the Canadian blockchain firm outlined that it was creating a blockchain-based system; for base metal concentrates, structured finance, and emissions tracking.

US Charges Dutch National With Running Crypto-Funded Child Porn Site

by

The Spanish authorities have indicted a number of individuals with the ongoing investigation of crypto-funded child porn websites on the dark web. The Spanish Civil Guard reportedly brought down a dark web-based crypto-funded child porn gang that used cryptocurrency transactions to subscribe to the contents.

According to the Spanish Civil Guard, the operation known as “Jekyll” nabbed three individuals connected to the “Welcome 2 Video” platform. However, the Spanish authorities have received additional reinforcement from the US authorities to take down the crypto-funded child porn gang.

Crypto-funded child porn business on the dark web

Users of the platform would pay using digital currencies such as bitcoin or any other privacy token to access content on the dark web. And the platform rewarded members for uploading their videos and photos to the dark web-based website. The examination of thousands of cryptocurrency transactions led to the final arrest of individuals connected to the site.

Additionally, Spanish law enforcement reportedly detained an individual in Bilbao, Spain, during operation “Kugantxu.” As per the police, the person was arrested for purchasing and streaming for pornographic content where minors were sexually violated live on-demand. The name of the website has not yet been revealed.

International co-operation against child pornography

Notably, the Civil Guard claims that the dark web site is operated by people based in the Philippines. Once the Philippine Transnational Criminal Investigation Unit was informed, they were able to recognize the content shared by individuals.  The Spanish authorities also carried out an operation called “kiru,” which resulted in the arrest of a man based in Madrid for defiling his 16-year-old stepdaughter.

The large international operation led to the identification of 20 individuals based in the U.S.; Colombia, Argentina, Chile, Brazil, Ecuador, Mexico, Panama, and Peru. Furthermore, earlier this month, a South Korean court ordered all the crypto assets and digital wallets owned by Cho Ju-bin to be frozen, the suspect behind Nth Room, a child porn channel based on Telegram.