Crypto News Weekly 23.11.18: North Korea Announces Blockchain Week as SEC and Bitcoin Cash Wars Take Their Toll on the Market
SEC and Bitcoin Cash Wars take their toll on the market
In one week the overall market cap for cryptocurrencies has dropped from $210 billion to under $150 billion, taking it to its lowest levels for the year as SEC increases its actions against ICO projects and Bitcoin Cash spends millions in its hashrate wars.
As the two opposing developer camps involved in Bitcoin Cash, Bitcoin Cash ABC (Roger Ver) and Bitcoin Cash SV (Craig Wright - the man who claims to be the creator of Bitcoin - Satoshi Nakamoto) failed to reach agreement, the currency forked into two different chains or versions thus sparking a hash war. As each side moved more and more resources onto mining their version of Bitcoin Cash to make it the dominant version, major resources were redirected from mining the original Bitcoin and huge amounts for money spent leasing resources for unprofitable mining operations. Bitcoin ABC seems to have come out the winner with many exchanges now listing Bitcoin Cash as the ABC version and starting a new ticker for Bitcoin SV, but all parties are essentially losers including the crypto market as investor confidence gets badly shaken. There is talk from the Bitcoin SV camp that seems to indicate they are getting ready to admit defeat and become a new minor currency, which has replaced the talk of a long war of attrition until the financial death of one or the other.
The SEC has recently targeted two American based ICO projects, Paragon and Airfox, forcing them to register as securities and pay back the investors from the ICO fundraising. The actions were seen as important as they now form a template that the SEC can apply to many other previous ICOs. Important points to note, were that the defense that the utility token was not a security could not be true especially if the actual platform for use did not exist at the time of fundraising, and release tokens to the secondary markets, i.e., exchanges, before product launch was also a further sign of speculative behavior. Combining the above with recent actions against Delta Exchange, a decentralized crypto exchange that had to agree to a third of a million dollars in fines for listing tokens that the SEC considered to be securities, and the market is set for a rocky time in the short term.
North Korea to host blockchain conference week
The Democratic People’s Republic of Korea is throwing open its doors to international visitors in April 2019 for a week-long excursion and blockchain conference in Pyongyang, as long as you are not from South Korea, Israel, Japan and are not a journalist. For a price of 3300 Euros you will be can attend the Science Park and also excursions to the demilitarized zone, skating, bowling, shooting and a visit to a secondary school, from the “ the safest country in the world, as long as you have basic common-sense and respect for the culture and belief of other nations,” the website advises.
The actual promotional picture of the conference is unusual and not clear whether this is the layout for attendees or the security personnel that will be monitoring the guests. As a country with a reputation for hacking crypto markets and using virtual currencies to circumvent international sanctions, it will be interesting to see which type of guests they are hoping for.
New York sim swapper arrested for $1 million crypto theft
Sim swapping is the name for a fooling mobile phone call systems with a false identity to get the operator to “port out” the number to their sim card and hijack your digital identity after calls and messages are redirected to the new location. AT&T is already being sued for $220 million after they redirected phone communications to a scammer who stole $23 million worth of cryptocurrencies.
Nicholas Truglia, is a 27-year-old New Yorker who has been arrested in connection with sim swapping and targeting Silicon valley executives to get to their digital assets, and in particular the theft of San Francisco-based Robert Ross, who lost a half million dollars from his Coinbase account in seconds and then an equivalent amount from his Gemini exchange account. Mr. Truglia was in the press earlier this year, after he claimed he had been tortured by rich acquaintances he had met while drunk in a bar who he invited back to his apartment and who tried to gain access to his digital wallets.
Tron $1 million giveaway for developers
Tron has announced it is giving away $1 million to developers under its accelerator program to encourage the development of dApps on the Tron blockchain. Applications are invited until January to be able to win one of the 56 prizes, with the top slots being $200,000, $100,000, and $50,000 for boosting the Tron Dapp ecosystem.
Tron CEO Justin Sun has recently been tweeting that Tron’s transaction rate is massively growing and surpassing other networks such as EOS and Ethereum, but, considering his past reputation for exaggeration, there has been widespread skepticism.