Posts by Blumit

    Ether Outlook Improves as Price Pushes Above Key Moving Averages

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    • ETH’s is above the 100-day moving average (MA) with a $180 target along the 200-day MA.
    • ETH/BTC pair has moved above the 200-day moving average (MA) for the first time in 242 days.
    • RSI is beginning to change structure (ETH/USD) forming higher lows and higher highs and is at its highest point since May 2018.
    • Larger than average increase in daily volume for months Nov. and Dec. most in over 12 months.

    The world’s second largest cryptocurrency by market capitalization ether (ETH) has seen a stronger showing from the bulls after rising 36.77 percent in February so far.

    Like bitcoin, ETH has also crossed over a key long-term indicator along the 100-period moving average, a sign that a larger trend change could be in development. Price action peaked along a strong area of support turned resistance at $140-$149 before retracing shortly after Monday’s trading session began.

    Daily chart (ETH/USD)

    As can be seen above, ETH has risen and closed above the 100-period moving average (MA) on the daily chart a sign that price action is changing from bearish-to-bullish while the relative strength index (set to 21 as per Fibonacci theory) reinforces the notion of higher lows after a break from the 12-month lower low market structure in Dec.

    There was a steady increase in total growing volume, especially back in Nov. and Dec. 2018 that backed a break toward the 100-day MA but was eventually unsustainable and prices retraced 35 percent before finding the momentum to rally once more.

    If the direction of the trend is to be sustained the target for the bulls in the short-term would rest along Jan. 5’s peak high of $160.62, previously rejected by the 200-day MA.

    Daily chart (ETH/BTC)

    On the other hand, ETH’s bitcoin denomination has performed exceptionally well so far in the month of Feb. and has crossed over the 200-day moving average (marked blue) for the first time since May 22, 2018, roughly 8 months ago.

    ETH/BTC is considered a fairly decent barometer on gauging the strength of the alt-coin market and has spurred on further gains across the board.

    ERC-20 tokens that leverage off and operate within the ethereum ecosystem such as Maker (MKR) and Binance (BNB) are currently up 70 and 61.88 percent respectively in Feb. a sign that investors are re-entering the ether markets at an exponential rate.

    Other notable tokens such as Holo (HOT) and ChainLink (LINK) are up between 12.96 and 10 percent in Feb. so far and are profiting from ether’s good fortune.

    Developments Affecting Price

    The Constantinople hard fork could also be affecting investor sentiment and thereby ether’s price action.

    The upgrade intends to change the amount a miner is rewarded from 3 ETH per block reward to 2 ETH, which will in effect reduce the total supply of new ETH by around one-third.

    The hard fork activation has been set for block number 7,280,000, landing on the date of Feb. 27th, according to developer Péter Szilágyi.

    Further, ErisX, a US-based digital asset exchange, filed a letter on Feb. 15 to the Commodity Futures Trading Commission (CFTC) in response to questions regarding current ether market conditions that suggested regulated ETH futures as a means to tame chaotic price fluctuations and manipulation:

    “There is a lack of institutional-grade trading and post-trade technical infrastructure and operational capabilities, transparent and regulated operations, secure and compliant custody options, fragmented liquidity, and lack of effective hedging options for commercial actors as well as financial intermediaries”.

    They note the lack of security and assurances from regulatory bodies as the potential reason institutional investors have yet to move money into crypto.

    Disclosure: The author holds no cryptocurrency at the time of writing.

    Ethereum image via Shutterstock; charts by TradingView

    Source: https://www.coindesk.com/ether…or-first-time-in-8-months

    Mark Zuckerberg Considers Blockchain Authorization of Data in Recent Interview

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    Source: https://cointelegraph.com/news…-data-in-recent-interview

    Hardware Wallet Doesn't Store Private Keys to Surpass Cold Storage

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    Hardware Wallet Doesn’t Store Private Keys to Surpass Cold Storage

    A payments technology company has created a hardware wallet that addresses the “flawed approach” used for cold storage — and eliminates the physical storage of private keys.

    Instead of storing private keys on a device — a “potential security problem” — Bitfi says it has developed technology that does not store any data or private keys. Instead, the company’s hardware uses a deterministic algorithm to calculate the private key at the moment of a transaction. This means that the private key comes into existence for a fraction of a second and vanishes immediately afterward. This technology is meant to overcome the risk of total loss should a hardware wallet be lost, seized or stolen.

    Bitfi recommends creating a seven-word passphrase by using its Diceware method, which offers greater entropy. However, the company says that those who own its wallet have the option to memorize their passphrase. It encourages users to leave 24-word mnemonic seeds behind in favor of a seven-word alternative. Combined with no physical storage of private keys, the company argues this better protects users against attacks — as memorizing a shorter phrase eliminates the need to write down a seed, something a malicious actor could access.

    The company says it eliminates the possibility of wallet funds being lost if a physical device is stolen by ensuring that no data is stored on the hardware itself, meaning that hacking the wallet is “fruitless.” This approach also offers greater protection to users in the event that their wallet is damaged or lost following natural disasters such as fires, floods or earthquakes.

    Bitfi argues the practice of storing private keys on hardware wallets and connecting such devices to a computer creates an unacceptable risk of this sensitive information being obtained by hackers or malware, especially during physical attacks.

    Making amends

    Last year, Bitfi described its hardware wallet as the “world’s first unhackable device” — but the company has now withdrawn this claim.

    The company had established a bounty hunt — initially offering a $100,000 prize, but which was then raised to $250,000 — for the first person who managed to hack its device. As reported by Cointelegraph this summer, this initiative was spearheaded by infamous investor John McAfee.

    Although reports began to emerge that security experts had unearthed vulnerabilities, Bitfi claimed that these breaches did not satisfy the conditions of the six-figure bounty, which required researchers to extract funds from the device — and the company then went on to create a second bounty hunt with a smaller reward of $10,000 for “man-in-the-middle” vulnerabilities. Both bounty programs have subsequently been closed, but the company says it will soon introduce a new program with the launch of the new DMA-2 wallet.

    Bitfi has described the incident as a disagreement with the infosec community, and says that the initial model that was the subject of the bounty program is no longer being shipped, as it has been superseded by a new model with additional features.

    Simple, yet secure

    Bitfi says crypto wallets need to offer a blend of high security and user friendliness, as otherwise, inexperienced owners of crypto assets risk losing their funds by accident. The company says no technical skill is required to use its product, and the device itself receives new features and security updates automatically from Bitfi’s node in real time.

    This helps to reduce the chance of a user downloading corrupt software — and it also means users will be able to benefit from new features, such as support for additional cryptocurrencies, instantly. Overall, the company says that this ensures its devices are “never outdated or obsolete.”

    In January, Bitfi integrated an all-in-one privacy cryptocurrency known as Apollo, and a blog post written by the coin’s team says it “combines mainstream crypto features into an unregulatable platform.”

    Bitfi says that worries about safe cryptocurrency storage are a major hurdle in the quest for mainstream adoption — and it hopes that its solution, combining security with a device that is as “easy to use as an ATM,” will help drive growth for Bitcoin and other important assets.

    Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

    Source: https://cointelegraph.com/news…s-to-surpass-cold-storage

    ETH Futures Case: The Industry's Feedback to CFTC, Reviewed

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    On Feb. 17, the United States Commodity and Futures Trading Commission (CFTC) stopped accepting public comments regarding the Ethereum (ETH) mechanism. Previously, as 2018 was drawing to a close, the agency requested the feedback on the cryptocurrency to better understand the technology and how it compares to Bitcoin (BTC).

    The CFTC, which oversees the futures and options market in the U.S., has long determined that Bitcoin is a commodity, and therefore falls into its regulatory purview. In December 2017, the agency allowed two major regulated exchanges — the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) — to list BTC futures on their platforms.

    Now, given that Ethereum, like Bitcoin, has been cleared of being classified as a security, the watchdog might be preparing to greenlight Ethereum futures contracts.

    Around 30 public comments were submitted in response to the CFTC’s request: Coinbase, Circle and Craig Wright were among respondents

    On Dec. 11, the CFTC announced it was seeking public comments and guidance regarding the Ethereum network. Specifically, the agency required the feedback to better understand the cryptocurrency and its underlying technology, as well as the differences and similarities between Ethereum and Bitcoin, including the “opportunities, challenges, and risks” associated with the altcoin.

    Further, on Dec. 17, the regulator followed up on its initial statement and published a respective Request for Information (RFI) with the Federal Register in order to collect the information. The CFTC requested public comments on 25 different questions regarding Ethereum — namely its security and market features, as well as use cases of applications based on its network. The agency also noted that it oversees the commodity futures markets as per the Commodity Exchange Act (CEA), meaning that the CFTC will most likely use the comments to assess the possibility of approving Ethereum futures. The watchdog wrote:

    “The Commission is seeking public feedback in furtherance of oversight of these markets and regulatory policy development. The input from this request will advance the CFTC’s mission of ensuring the integrity of the derivatives markets as well as monitoring and reducing systemic risk by enhancing legal certainty in the markets.”

    Moreover, the CFTC noted that the results of the RFI will also be used by its fintech initiative dubbed LabCFTC. Founded in May 2017, LabCFTC is a dedicated hub for “engagement with the fintech innovation community,” aiming to examine “new regulatory fintech developments in the marketplace,” as previously explained by CFTC Chairman Christopher Giancarlo.

    Finally, the 60-day deadline was announced as well, as the document stated that comments must be sent not later than Feb. 17, 2019.

    According to the CFTC website, a total of 43 entries were submitted by the public before the deadline. After taking a closer look, it becomes clear that 14 of those entries are either advertisements, generally irrelevant comments or identical copies of other statements. Hence, only 29 RFI entries represent comments on Ethereum submitted by the public. Those were filed by industry participants such as Coinbase, Circle, ConsenSys and Craig Wright, among others.

    Here is the list of selected, generalized questions proposed by the CFTC, along with answers from certain crypto companies and trading associations.

    How do the current functionalities and capabilities of Ether and the Ethereum Network compare to those of Bitcoin?

    The Ethereum Foundation: Switzerland-based nonprofit organization comprised of global team of developers

    The Ethereum Foundation argued that, on the Bitcoin blockchain, each account simply stores a certain amount of Bitcoin as well as “a script in an ultra-minimal programming language that determines how to verify who has the right to spend these bitcoins.” Ethereum, on the other hand, supports the creation of smart contracts, the foundation argued. Smart contracts, in turn, are featured in applications that are “not financial in nature but simply use the blockchain as a source of high-assurance computation and data storage.”

    Circle: Goldman Sachs-backed startup focused on making instant money transfers

    Circle compared Bitcoin and Ethereum in the context of payment transactions, also explaining that, unlike Bitcoin, the Ethereum network supports additional tokens that utilize its smart contracts feature:

    "As with bitcoin, Ether can be used to pay for transactions and can be used for payments. Unlike bitcoin, tokens on the Ethereum network can be generated using smart contracts and can be used in smart contracts and transfers."

    The Futures Industry Association: international trade organization for the futures industry with around 180 corporate members

    The Futures Industry Association (FIA) also suggested that Ethereum is generally more versatile than Bitcoin, but warned the CFTC to measure additional risks caused by this difference. The association stated:

    "With the Ethereum Network’s architecture, risk management is potentially more complicated than for Bitcoin by orders of magnitude. Whereas Bitcoin is a payment unit on a shared and distributed ledger for transactions, Ether is a unit of work on a distributed functionality tool that offers super-computing power on the Ethereum Network, in exchange for value.”

    Craig Wright: leader of Bitcoin SV, nChain chief scientist and self-proclaimed “Satoshi Nakamoto”

    Craig Wright also reached out to the CFTC with a comment. Notably, in the introduction, he reiterated his previous claim that he is actually the original inventor of Bitcoin.

    Further, Wright harshly criticized Ethereum while arguing that Bitcoin can also support smart contracts in theory, but that ability was allegedly damaged by its core developers:

    "Ethereum is a poorly designed copy of bitcoin designed with the purpose of completing the promise of smart contracts and scripting that were delivered within bitcoin but which were hobbled by the core developers of bitcoin."

    Would transitioning ETH to a proof-of-stake (PoS) consensus make it more prone to manipulation?

    The Futures Industry Association Principal Traders Group: FIA’s lobby group that represents principal traders

    The FIA’s Principal Traders Group suggested that, hypothetically, if Ethereum fully migrates to the PoS model, a participant could open up multiple validator accounts on its blockchain to their benefit. However, the community will still hold enough instruments to deal with such manipulation, the trading association argued, citing Vitalik’s views on the proof-of-stake design:

    “If a malicious group of validators attempted to prevent others from joining or executed a 51% attack, the community would simply coordinate a hard fork and slash the offending validators’ deposits. See Vitalik’s proof-of-stake design philosophy, where he addressed this issue, here.”

    ConsenSys: blockchain tech company led by Joseph Lubin, Ethereum co-founder

    ConsenSys argued that, “under the current proof‑of‑stake plans for the Ethereum Network,” the risk that someone succeeds in manipulating the Ethereum Protocol is low, and even lower than under the current proof-of-work (PoW) system:

    “In particular, any party that stakes ether to validate blocks on the Ethereum Network will have less of an ability to directly impact the network, even relative to their proportional ‘staked wealth,’ than miners on proof‑of‑work protocols relative to their proportional hash power. In fact, [...] under the Ethereum Network’s planned proof‑of‑stake protocol, even if a validator controlled 1/3 of the entire ether staked in the protocol, the validator’s probability of obtaining enough control to do damage is less than one in one trillion.”

    Circle

    Circle also agreed that the PoS-based network is generally safer than PoW, arguing that the community would notice any suspiciously rapid increase in the token’s value:

    “Additionally, there may not be enough of a given PoS-based token’s supply on exchanges, so sourcing the liquidity necessary to purchase a majority of tokens may not even be possible.”

    Craig Wright

    The self-proclaimed Satoshi Nakamoto argued that “there is no working proof of stake-model,” and that “all proof of stake mechanisms collapse into single-user control and allow alteration
    rather than the creation of an immutable record.” He cited his experience of testing “the equivalent a proof of stake mechanisms” in 2003-2007 to support those statements.

    What impediments or risks exist to the reliable conversion of Ether to legal tender?

    ErisX: Chicago-based, Wall Street-backed crypto exchange

    ErisX noted that Ethereum owners face certain problems like price volatility and liquidity risk related to finding ready counterparties with offsetting interest when looking to cash out on their tokens, “which is similar to other assets that are not legal tender.”

    Further, the exchange compared Ethereum to gold in the sense that it is difficult to convert both of those assets into the legal tender physically, while future contracts significantly simplify that task:

    “The efficiency that futures contracts introduce into the gold market enables gold owners to convert their assets into legal tender more efficiently and at better prices than may otherwise be available in the absence of the futures contract. Regulated futures markets can be similarly expected to benefit the Ether market.”

    Coinbase: major U.S. crypto exchange

    Coinbase essentially used this question to remind the agency that most risks associated with the conversion of cryptocurrencies into legal tender exist due to the unregulated nature of the crypto market. Ideally, the exchange continued, all trading platforms must follow thorough Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, among other factors.

    “As with any freely-traded asset, the price of Ether can fluctuate based on a variety of factors. The greater the percentage of volume trading on the exchanges with capabilities listed above, the more that the market price will reflect true supply and demand for the product.”

    Circle

    Circle appeared more confident about the conversion of Ethereum into legal tender:

    “There are not many impediments or risks associated with converting Ether to and from legal tender. Ethereum is one of the most liquid crypto assets available on spot trading platforms, and there are numerous trading platforms that also contain fiat on-ramps, including Coinbase, Gemini, Kraken, Bitstamp, itBit, HBUS (Huobi), and others.”

    How would the listing or trading of derivative contracts on Ether affect the cryptocurrency itself?

    ErisX

    ErisX stressed that the introduction of a regulated futures contract on Ethereum “would have a positive impact on the growth and maturation of the market,” adding:

    “The introduction of standardized futures contracts [...] may have the effect of making the market more accessible, at lower risk, with lower volatility, for a larger, broader diversity of actors. This includes the potential for greater liquidity, more effective price discovery, and more efficient risk transference. A higher quality market invites greater participation, which can lead to increased quality in a positive feedback loop.”

    Circle

    “Generally, we believe the listing and trading of derivative contracts would be orthogonal to the functionality of the Ethereum Network, as networks are designed to be used independent of the existence of trading markets for their respective tokens,” Circle noted.

    The startup, however, continued by stressing that, under sufficient scrutiny provided by the CFTC, the risks associated with Ethereum derivative contracts should be mitigated.

    Coinbase

    The U.S. exchange argued that financially settled futures products “would not likely have a substantial impact on the Ethereum network.” In fact, Coinbase added, it could reduce price volatility, which, in turn, could result in “greater commercial usage.”

    Conclusion: CFTC received mostly positive comments, large crypto players ask to regulate the industry

    Overall, the CFTC received mostly positive feedback from crucial crypto and futures industry participants. The negative comments were provided mostly by a private individual — who put “Ethereum Fraud” under his company name, arguing that listing ETH futures would “validate fraud,” among other things — and Craig Wright.

    The message from major U.S. crypto players such as Circle and Coinbase was clear: The industry needs more definite regulatory measures from the watchdogs. Interestingly, last week, CFTC Commissioner Brian Quintenz suggested that participants in the cryptocurrency market should create a self-regulatory structure, citing the CFTC’s lack of crypto statutory oversight capability.

    As Cointelegraph previously reported, the CFTC’s progress in reviewing Ethereum could have been significantly delayed due to the U.S. government shutdown in January.

    Source: https://cointelegraph.com/news…feedback-to-cftc-reviewed

    Global Cryptocurrency Trading Volumes Jump to 300-Day Highs

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    The total volume of all cryptocurrency trading as tracked by market metrics leader Coinmarketcap hit a 300-day high Tuesday, reaching $33.85 billion, the most observed in 10 months.

    As such, the data point is the latest to suggest that trading activity in the cryptocurrency markets is increasing – Coinmarketcap tracks the aggregate trading volume of 2,074 cryptocurrencies, including data about how they are being bought and sold across exchanges worldwide.

    Daily cryptocurrency trading volume

    But, the data hints that there may more nuance at work than simply a market-wide surge; a large majority of yesterday’s trading volume came from the 10 largest cryptocurrencies by market cap.

    The aggregate trade volume from the top 10 alone was roughly $30 billion, or 88 percent of all trading volume seen Tuesday. Bitcoin (BTC) and tether (USDT) recorded 24-hour trade volumes above $9 billion, each accounting for roughly 27 percent of the 24-hour total.

    Still, the uptick in trading volume shows a renewed investor interest in the market, which perhaps should not come as a surprise seeing as the value of the broader cryptocurrency market has increased roughly 12 percent in the last seven days.

    That said, trading volumes are still a fraction of what was seen toward the end of the most recent bull market in 2017. The most trading volume ever recorded in a single day occurred on Jan. 4, 2018, when just over $68 billion traded hands, an amount equal to less than half of yesterday’s total.

    Trading volumes are off to another strong start today, recording $29.8 billion at press time. Since the beginning of the week $96.9 billion in total has been traded which is already 68 percent of the volume recorded in the prior week, which at the time was a near nine-month high.

    Disclosure: The author holds BTC, LTC, ETH, ZEC, AST, REQ, OMG, FUEL, ZIL, 1st and AMP at the time of writing.

    Trading image via Shutterstock; charts from charts.cointrader.pro by TradingView

    Source: https://www.coindesk.com/globa…mes-jump-to-300-day-highs

    Bitcoin Price Looks North As Trading Volumes Hit 9-Month Highs

    bitcoin-image.jpg

    • Bitcoin witnessed an inverse head-and-shoulders breakout on Monday and rose to $4,000 yesterday, confirming a bullish reversal on the daily chart.
    • The trend change is backed by a jump in trading volumes to levels last seen in May 2018. The rally, therefore, looks to have legs and December highs above $4,200 could come into play, albeit after a minor bout of consolidation or pullback, as the indicators on the 4-hour chart and daily charts are reporting overbought conditions.
    • A break below Monday’s low of $3,614 would invalidate the bullish setup, although that looks unlikely, as longer duration charts are beginning to align in favor of the bulls.

    Bitcoin (BTC) could revisit December highs above $4,200 in the near-term as the recent rally is backed by a surge in trading volumes.

    The leading cryptocurrency by market value is currently trading at $3,930 on Bitstamp, having clocked a 5.5-week high of $4,000 yesterday.

    The 20 percent appreciation witnessed over the last 12 days is accompanied by a 28.4 percent rise in daily trading volumes, according to CoinMarketCap.

    Notably, total trading volumes across all exchanges jumped 40 percent to $9.91 billion on Monday, validating BTC’s bullish breakout above $3,800. Further, investor interest in the cryptocurrency has increased post-breakout. This is explained by the fact that volumes rose to $9.93 billion yesterday – the highest level since May 3, 2018.

    Put simply, the recent rally is backed by strong hands and so, prices could rise further towards $4,236 (Dec. 24 high) in the near-term.

    Daily chart

    Both the inverse head-and-shoulders breakout and the triangle breakout seen in the above chart indicate a bearish-to-bullish trend change.

    The 5- and 10-day MAs are trending north, indicating a short-term bullish setup. The 50-day MA has bottomed out (shed bearish bias) and the 100-day MA hurdle has been scaled.

    While the path of least resistance is to the higher side, the rise to the Dec. 24 high of $4,236 may not happen immediately, as the 14-day relative strength index (RSI) has moved into overbought territory above 70.00. The long upper shadow attached to the previous day’s candle is also echoing a similar message.

    4-hour chart

    On the 4-hour chart, the RSI is reporting overbought conditions and has diverged in favor of the bears (has not confirmed higher highs on price). However, the stacking order of the 50-candle MA, above the 100-candle MA, above the 200-candle MA is a classic bullish indicator.

    So, pullbacks, if any, could be short-lived – more so, as longer duration charts are looking increasingly bullish.

    3-day chart

    BTC’s current 3-day candle looks set to close well above $3,711. That would add credence to the bullish outside reversal candle created in three-days to Feb. 8 and open up upside towards $4,429 (38.2 percent Fibonacci retracement).

    Supporting that bullish case is the bullish crossover between the 5- and 10-day MAs, confirmed earlier this month and the RSI of 51.00.

    Disclosure: The author holds no cryptocurrency assets at the time of writing.

    Bitcoin image via Shutterstock; charts by Trading View

    Source: https://www.coindesk.com/bitco…volumes-hit-9-month-highs

    Wyoming Lawmakers Pass Three Bills in Boost for State's Crypto Industry

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    The U.S. state of Wyoming has passed several bills aimed to make the state a top destination for cryptocurrency and blockchain businesses.

    The Wyoming House of Representatives approved bill SF0125 last week, which recognizes digital assets as property and clears the way for banks to act as crypto custodians. The bill passed a House vote 54-2 and was concurred in the Senate a day later, with 29 votes for and none against.

    The bill defines a digital asset as “a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.”

    Once the bill is approved and signed by the state Governor Mark Gordon, it will officially become law effective July 1, and would classify digital assets as property within the Uniform Commercial Code.

    According to the bill:

    “Digital consumer assets are intangible personal property and shall be considered general intangibles, as defined in W.S. 34.1‑9‑102(a)(xlii), only for the purposes of article 9 of the Uniform Commercial Code, title 34.1, Wyoming statutes.”

    The bill also includes a provision for allowing banks to provide digital asset custodial services providing they comply with all accounting, internal control and other standards. It was first introduced last month by a bipartisan group of the state legislators.

    Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told CoinDesk at the time that the bill is a big step forward for the state, and could prove a boon for crypto startups and users alike.

    Stocks and banking too

    And that’s not all. Wyoming House of Representatives also passed two other major bills on cryptocurrency regulation last Friday – House Bill (HB) 0074 and HB0185.

    HB0185 was introduced last month and enables securities to be issued in tokenized form. “Normally, a stock certificate is a piece of paper. … If you want to use a blockchain token to represent a stock certificate, [that would be] legal in Wyoming. [It would be] a legally issued security,” Long told CoinDesk.

    Meanwhile, HB0074 is designed to address one of the major challenges to the blockchain industry in Long’s eyes – that “banks have not been banking the [crypto] startups.”

    “There was a crackdown in the fall of 2017 and a number of banks went through and did a big compliance review that closed every account that was connected to digital assets at all. A lot of businesses when out of business because they lost their bank accounts,” recounted Long. “This [bill] is designed to be an industry utility. It’s designed to serve a very important need that wasn’t been served by the mainstream banking industry.”

    As stated on Long’s official website, HB 0074 creates “special purpose depository institutions to serve businesses which may not be able to access traditional banking services, including blockchain businesses.”

    Speaking to CoinDesk, Republican member and majority whip of the Wyoming House of Representatives Tyler Lindholm commented:

    “[With HB0074,] it’s not required to have FDIC insurance in place, so that means they’re not obligated to listen to [certain] federal government [requirements] … Blockchain-type industries, gun industries, all sorts of industries down the line get discriminated against. So, that’s what we’re targeting here.”

    Leading the pack

    The passing of all these bills “surpasses anything we did last year,” adds Lindholm. “I think you’re going to see institutional customers such as Fidelity looking at this.”

    Agreeing with this sentiment, Long told CoinDesk:

    “There’s going to be an influx of a financial services industry to the state of Wyoming, both from the special purpose depository institutions that we talked about today – these are the non-FDIC insured banks – as well as separately there’s going to be digital asset custodians coming into the state of Wyoming.”

    All three bills are currently awaiting signature by the state governor.

    “Obviously it’s not done until it’s done so we’re careful to say they’re not law yet but they are heading there most likely,” highlighted Long.

    Back in January, the state also approved a fintech sandbox bill, aiming to let startups, including those in the blockchain space, test new technologies and determine how they might function within existing regulatory regimes.

    “I think right now Wyoming is the standard. We’ve got other states running in one form or another our legislation … so they’re trying to play catch-up. The unfortunate part of that is we passed the bills this year too, so that puts us out a little bit farther out front,” boasted Lindholm.

    Wyoming State Capitol image via Shutterstock

    Source: https://www.coindesk.com/wyomi…or-states-crypto-industry

    New Survey Indicates Businesses Unprepared to Deploy Blockchain Technology

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    Source: https://cointelegraph.com/news…loy-blockchain-technology

    Bets on Declining Bitcoin Price Drop to 6-Month Low

    shutterstock_36037615.jpg

    The amount of money allocated to short bets against bitcoin fell to a more than 6-month low during Tuesday’s trading session, data from the popular cryptocurrency trading platform Bitfinex reveals.

    At 13:00 UTC today, the total funding in BTC shorts, or positions that would profit from a decline in the price of the underlying bitcoin asset, fell beyond the recent low of 18,992 BTC set this past November to reach 18,888 BTC – the lowest amount seen since Aug. 4, 2018.

    The development comes a day after bitcoin’s price increased 8 percent, which likely trapped investors with a bearish outlook on the wrong side of the market, causing them to cover a large number of short positions.

    Current figures show a 28 percent drop in the amount of funds in bitcoin shorts since the beginning of the day yesterday.

    Interestingly, bullish bets on Bitfinex, known as “longs,” have also witnessed a sharp decline in the past 48 hours.

    Data from Bitfinex further reveals the amount of BTC/USD longs have dropped by a similar 29 percent from yesterday’s high, which is likely a sign of investors are deleveraging, or taking profit after bitcoin’s near 18 percent price increase over the past 11 days.

    As it stands, the ratio of long to short positions is 1.42 to 1, meaning there are 1.42 BTC in a long position per every 1 BTC is a short position on Bitfinex. The ratio is a slight decline from the most recent high of 1.54 to 1 set on Feb. 15.

    As previous analysis from CoinDesk notes, an unusually high long/short ratio can be a sign of an impending “long squeeze,” or rapid covering of long positions which increases the rate at which price declines. However, the current ratio of 1.42 is lower than both the ratio of 1.8 to 1 set in August and the all-time high ratio of 3.74 to 1 set in February of 2018.

    Disclosure: The author holds BTC, LTC, ETH, ZEC, AST, REQ, OMG, FUEL, ZIL, 1st and AMP at the time of writing.

    Teddy-bear-ill image via Shutterstock; charts by TradingView

    Source: https://www.coindesk.com/bets-…price-drop-to-6-month-low

    CEO of Japanese Finance Giant SBI Vests His Crypto Industry Hopes in Ripple and R3

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    Source: https://cointelegraph.com/news…ry-hopes-in-ripple-and-r3