US Regulators Talk Bitcoin’s Generational Impact

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As cryptocurrency evolves, so does its relationship with government. While lawmakers in some countries seek to suppress a financial force they don’t understand, in the U.S., the reverse appears to have started to take hold, indicating an opportunity is at hand for a dialog between the industry and lawmakers. In a Senate Banking Committee hearing … Continued

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How get your PURA Common Node(s) NOW!

As we have already said a short time ago, Pura continues to do great things; with the upcoming Aurora update in the next weeks (specific date will be published soon) PURA will set new benchmarks, that´s for sure. After the upcoming release, th

Polish Financial Authorities Paid Youtuber to Smear Cryptocurrency

Polish Financial Authorities Paid Youtuber to Smear Cryptocurrency

Polish financial authorities have spent taxpayers’ money on a smear campaign on Youtube and Facebook against investing in cryptocurrencies. While issuing warnings or trying to educate the public against what regulators fear are risky investments are not uncommon around the world, in this case they tried to sway public opinion against crypto assets by paying social media influencers to attack them.

Also Read: Half of Large British Businesses Hold Stockpiles of Cryptocurrency

Youtube Propaganda

Polish Financial Authorities Paid Youtuber to Smear CryptocurrencyThe Central Bank of Poland (Narodowy Bank Polski or NBP), in cooperation with the country’s Financial Supervision Authority (Komisja Nadzoru Finansowego or KNF), have paid over 90,000 PLN (Polish złoty) for an online smear campaign against cryptocurrency investments. The money went, among others, to a Polish Youtube content network which represents many popular young local content creators.

A rather silly video with the title “I LOST ALL MONEY?!” depicting investments in cryptocurrencies in a negative light appeared on December 8 on the Marcin Dubiel’s channel, a Polish youtube prankster who has over 900,000 subscribers. The film, which already has over half a million views, is marked with the hashtag #uważajnakryptowaluty, which is associated with a website set by NBP and the KNF to say that “Virtual currency is not money” and similar warnings.

Product Placement

Polish Financial Authorities Paid Youtuber to Smear CryptocurrencyAs the local reports pointed out, the video was not marked on Youtube as “including paid promotion”, and there is also no mention in its description that it is part of the campaign for which the NBP paid. The material paid for by NBP was also published on the Polish Planeta Faktów channel on Youtube. Furthermore, judging by the quality of the content, its distribution channels and its creators, the smear campaign appears to target young kids.

After one individual sent a question to the NBP about campaigns financed by the central bank, the NBP replied in a letter dated 9 February and admitted that it “carried out a campaign on the issue of virtual currencies in social media.” As mentioned above, the campaign cost 91,200 PLN worth about $27,000 in taxpayers’ money. In addition to Google Ireland (which owns Youtube) and Facebook Ireland, its beneficiaries were Gamellon, a Polish Youtube partner network focused on gaming channels.

Can you trust Youtubers and other influencers to voluntary disclose that they are being paid to promote or criticize things? Tell us what you think in the comments section below.


Images courtesy of Shutterstock.


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

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Washington Post Executive Pivots to Blockchain Firm CEO

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Jarrod Dicker is the new CEO of blockchain media company P.oet. Dicker is making the move to Po.et while departing from his position as Vice President of Innovation and Commercial Strategy at The Washington Post. Career Accomplishments Dicker believes Po.et will help put “…the power of written, visual and audio content back in the hands … Continued

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Trading Tip `The Wall´ – Drop Tokens That Suffer From Overtokenization

Trading Tip `The Wall´ - Drop Tokens That Suffer From Overtokenization

It’s said that 90% of all startups fail, and that we should expect nothing more from ICOs. But 10% success rate is still overly optimistic for ICOs, perhaps not for the reason you may think. You’re probably aware of examples of ICO “founders” who turned out to be a bunch of made up Linkedin-profiles. You’re probably also aware of the risks that comes with sending money to people on the Internet you never met, in an asset or token impossible to freeze.

Also read: Disappearing Premiums Signal Bearish Mid-Term Outlook

Drop The Tokens That Suffer From Overtokenization

You’re probably also aware of the industry-specific risks, apart from straight up scams, which include:

  1. ICOs violating securities laws
  2. ICOs using complicated legal structures in order to avoid violating securities laws and having it back-fire
  3. ICO fundraisers using Ethereum smart contracts and imploding (this actually happened to the Ethereum co-founder himself)

In this post, I’m going to discuss a much more daunting problem that very few seem to grasp; overtokenization.

Let’s be clear: ICOs as a concept is not at all a bad way to fund the development of a new cryptocurrency. However, the ICO space today is overwhelmed by projects that are not even cryptocurrencies. ICOs have moved from covering cryptocurrencies, to apps that use an existing cryptocurrency as its platform, to regular companies doing something cryptocurrency related, to regular companies doing nothing related to cryptocurrency at all. What many ICO investors seem to forget to ask is: why exactly do these projects need to have a “token”? Somewhere along the way, everything suddenly having a token became normal, and no one barely questions it anymore. This is going to cause a huge problem in the future, and I’m going to explain why.

There are very few cryptocurrency projects that legitimately necessitate a coin or a token from a technological perspective. The known examples that do are the following: actual cryptocurrencies (e.g. Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Monero), and certain protocols involving some kind of game-theoretical token usage (i.e. staking).

 

One of the few projects from the latter category I can come to think of is Augur. Augur isn’t a cryptocurrency, but a product that uses a cryptocurrency as platform. It’s a decentralized prediction market (currently in beta-stage), consisting of as a set of smart contracts on the Ethereum blockchain. In Augur, its REP token (an ERC20) is integral to the process of resolving bets. It provides Augur with a way to financially reward and punish the actions of honest and dishonest actors, and creates incentives for a specific category of users (REP holders) to be proactive on the platform.

Augur Project

Augur perhaps isn’t a project without flaws, but what we know is that it isn’t practical to try to create Augur without a token. The token is–from the ground up–integral to the functions of the platform. The token itself is also defensible as an investment: as the popularity of the platform increases, the more revenue will there be for REP holders to earn on fees from resolving bets. I would argue that these ingredients are pretty unique to Augur (and perhaps also similar projects like Gnosis). In fact, there are an extremely limited number of cases of non-cryptocurrencies where a token is both technologically necessary and useful as an investment.

But the allure of launching a project like Augur is tantalizing; you don’t have to plan to create a whole cryptocurrency to launch an ICO, you just need a product that somehow utilizes a token that in some manner economically motivates people to hold it. If you figure out that, then you can launch an ICO too.

Because of the insane amounts of money investors poured into ICOs, every entrepreneur in the industry has quickly decided that whatever project they’re working on should probably  involve some kind of token. Because not all projects are launching a new cryptocurrency, and they do not involve game-theory or staking that necessitates a token like Augur, most projects have settled with a model where a specific token is required to utilize its services.

Trading Tip `The Wall´ - Drop The Tokens That Suffer From Overtokenization

Golem plans to build a decentralized market for computing power.

A Token-Critical Perspective

This is where the industry is running into a problem. Instead of an ecosystem of services being built around cryptocurrencies, you will now have to first purchase a specific token in order to utilize those services. Whether its storage space for rent, processing power for rent or something else, you won’t be able to pay for those things directly in your favorite cryptocurrency, you’ll have to use the specific token they’ve restricted their service to accepting, in order to raise money from you in their token sale.

This restriction severely diminishes the utility of the service they are creating. In the Golem example, its participants will be forced to accept payment in GNT rather than bitcoin for instance. It’s very unlikely that GNT is going to be as liquid as bitcoin, and therefore it is much more likely that the value of GNT will fluctuate spectacularly in comparison, which isn’t very convenient for its users. Furthermore, some sort of micro-economy will have to evolve around the GNT token, that relies on GNT tokens to purchase services later resold to the market. That opens up a whole new attack surface of the service, where the entire platform could essentially be hijacked in a coordinated act of market manipulation. This is why absurd constructs such as Bancor have appeared, in order to solve this ridiculous problem.

This doesn’t necessarily mean that Golem and the likes of it will be useless; however, there’s a very real chance that something else eventually comes along and builds a platform where computer resources can be rented in the currency of its users choosing. Such a competing platform, without the friction of being restricted to a specific token, has a very big edge on its ICO-launched competitor. In the end, while it may be true that an ICO could be the thing that gets a project off the ground that wouldn’t have otherwise, it may also be the thing that kills it.

My trading tip this week is to go through your portfolio and evaluate your investments from a token-critical perspective. Get rid of those tokens that add no benefit to the product or service they are providing, and in many cases are a down-right handicap.

What are your thoughts on market manipulation? Let us know in the comment section below!


Images via Shutterstock, Twitter.


Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

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ShapeShift Gets Pulled Into BTC/BCH Debate Over Partnership With Bitcoin.com Wallet

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ShapeShift, a cryptocurrency exchange, has been pulled into the Bitcoin Cash (BCH) versus bitcoin (BTC) debate by partnering with the @BitcoinCom wallet that exchanges BTC for BCH. ShapeShift has stated via a tweet there was a miscommunication in its latest announcement concerning its partnership with the @BitcoinCom Wallet. ShapeShift stands by its offering to provide

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PR: Vadim Nareyko, CTO PlayHall – Technical Aspects of the PlayHall Platform

PlayHall Gaming Platform

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

PlayHall is a blockchain platform for holding regular skill-gaming tournaments and matches between users. In skill-games, your success does not depend on luck but on your skills and intelligence. In matches and tournaments held on the platform gamers will be able to win liquid cryptocurrency, which today can be quickly exchanged for fiat money. All this makes it possible to monetize your time and skills.

Because of the financial dimension of the game, the developers have covered the security issues and possible vulnerabilities in a serious way. The PlayHall team uses blockchain technology and smart contracts as well as the effective decentralization principles to ensure security and reliability of the platform.

The team is launching a demo version of the platform with a limited number of games even before the start of the token sale. Everyone will be able to test the convenience, safety and relevance of the platform.

Platform Decentralization Principles

The PlayHall team uses the principles of decentralization and smart contracts for creating an innovative gaming platform. These principles and the decentralized escrow technology will help to avoid any fraud and forgery of the results of tournaments and matches on the platform.

The full transparency of the platform, its consistency and an easily cryptographically verified software, which provides automation of all processes and transactions in the project ecosystem, guarantee the complete safety of the entire system.

The team’s goal is to eliminate the need for a trusted party or administrator. This will significantly reduce the operational costs of maintaining the system, reducing the commission and increasing the level of payments to gamers. This will also help to eliminate any fraud in the stages of payments to the winners.

Token Types and their Functions

Along with the main PHT, which is an ERC-20 token based on Ethereum Blockchain, the platform provides several types of tokens that will be used by the community members to make decisions by voting. This will provide a virtually perfect meritocratic project management system.

The voting, in which token holders can participate, will address key issues related to business processes and the future vector of project development on the platform: changing the terms of cooperation with game developers and attracting new developers, adding new games on the platform, changing the commission, allocating additional grants to developers, changing voting parameters, developing new functionality and addressing other important issues.

There are eight types of tokens for voting: a common PHT token, a weight token, a time multiplier token, a delegate token, a token committee, game score and games count score tokens and a developer token. Each type of token reflects a user’s membership in a particular community. The proportion of tokens is established depending on the type of voting. Dividing tokens into several groups is necessary in order to take into account the first place the opinion of the holders’ category that has the best knowledge of the subject matter and is directly related to the issue discussed at the current voting.

User Accounts

The user account consists of registration data, optionally including a phone number for additional safety, age verification, consent to the conditions of participation, and a safe multicurrency crypto wallet. The wallet is created and assigned to users automatically after registration. The wallet allows you to transfer PHT tokens and all the cryptocurrencies supported by the platform between PlayHall users, make purchases, sell, exchange and withdraw their assets. In addition to its own tokens, the platform will work with popular currencies: ZCash, Litecoin, Dash, Bitcoin and Bitcoin Cash, Ethereum and Ethereum Classic.

To enhance the security of user accounts on the platform, there will be provided a two-factor authentication, which enables creating white and black lists of IP addresses to prevent unauthorized access to the account, as well as a disabling blocking function that prohibits the withdrawal and transfer of cryptocurrency from all IP addresses except for selected ones.

The platform will become a bridge between the stable game industry and the emerging crypto economy, which will give it an opportunity to reach to a huge target audience. PlayHall is going to become the first blockchain platform, on which users will be able to monetize their time and intellect by earning a popular and liquid cryptocurrency for every victory in a regular match or tournament. By the end of 2019, the principles of decentralization will allow 12 million users to earn cryptocurrency using their intelligence and game skills in any of the 200 exciting skill-based games.

Contact Email Address
info@playhall.com
Supporting Link
https://playhall.io

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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