Crypto Space Over The Past Week From 7 To 13 Of May, 2018
At the end of the week, we resume everything that the crypto community talked about over the past seven days. This week there were rumors about plans of Facebook to create own cryptocurrency, the Moscow court recognized digital currency as property, and Warren Buffett called bitcoin rat poison squared.
On May 8, Vice President of Facebook, David Marcus, wrote that he is creating a team of experts who will study and implement the blockchain technology in the social network. Then there were rumors that social network's plans to create its own cryptocurrency.
The famous investor Warren Buffett didn't have any kind words about cryptocurrencies again at the Berkshire Hathaway 2018 annual shareholder meeting. Buffett said that "bitcoin is probably rat poison squared," and Bill Gates attributed investment in bitcoin to the "greater fool theory". In response to the criticism of Buffett, Jesse Lund, vice president of IBM's published on Wednesday a post entitled "Warren Buffett is not an idiot."
CEO Binance Changpeng Zhao considers that the ICO model is more preferable than schemes of venture financing despite the risk of fraud. He criticized venture financing, in particular, writing that "the collection of money through the ICO is about 100 times simpler than through traditional VC."
Tom Lee predicts a serious bitcoin price rise against the backdrop of the Consensus 2018. Lee estimated that the number of participants in the event could exceed 7,000, while last year there were about 2750. The last time the number of participants doubled, bitcoin grew by 69% during the conference and by 138% over the next two months. According to Fundstrat Global Advisors bitcoin price may rise to $ 36,000 by the end of 2019. Adena Friedman, Head of Nasdaq, also looks to the future of digital money with optimism.
The founder of the Reddit, Alexis Ohanyan, said that bitcoin and cryptocurrencies are able to "support the new Internet" even with a high level of their volatility. He believes that the real value of digital currencies lies in their ability to ensure the safety of money and transfer them across national borders, especially for countries that are less stable economically.
Intercontinental Exchange, the owner of the New York Stock Exchange, develops an online platform for purchasing cryptocurrencies, and representatives of the KuCoin exchange reported on the official website that its users will have to verify accounts.
Employees of the Prosecutor's Office of the southern district of Seoul on 10-11 May inspected the UPbit cryptocurrency exchange office. The exchange is suspected of transferring users' funds to an account that may belong to one of its executives.
Blockchain startup Circle on May 7 announced its intention to include in its investment application anonymous Monero cryptocurrency. The company took this step a week after adding Zcash support.
The Bytecoin rate jumped 32 times after the announcement of the listing for Binance. The announcement led to the fact that Bytecoin's market capitalization temporarily increased by $ 3.4 billion. Also, the exchange started supporting Augur in several trading pairs.
Robinhood, a free trading application, raised $ 363 million. The reasons for the growth were unexpected launches of new products since November last year, including the web version of the Robinhood application, interest-free option trading and, most importantly, free trade in bitcoins and ether.
After the appearance and rapid spread of the message that US regulators are due to meet on May 7 to decide the futures of the ethereum, recognizing it as ether a security paper or an official token, the price of the ether began to grow rapidly. The rally ended on Monday, May 7, when it became clear that the news of the meeting was a fake.
The Moscow court for the first time in history recognized the bankruptcy property belonging to the cryptocurrency and decided to include it in the bankruptcy estate (that is, in all the debtor's property available at the time of opening bankruptcy proceedings - the procedure used in bankruptcy cases). The case, the plaintiff for which stands Alexei Leonov, has been running since October 2017, when someone Ilya Tsarkov was declared bankrupt. Earlier, the arbitration refused the request, not recognizing the cryptocurrency property or asset.
The representative of the Ministry of Taxes of Azerbaijan, Nijat Imanov, said that the country will introduce income tax for individuals for transactions with cryptocurrencies and a profit tax for legal entities.
The Japanese Financial Services Agency (FSA) presented five steps to improve cryptocurrency exchange markets. Cryptocurrency exchange platforms will adhere to high security standards, they must implement KYC security procedures, advanced methods of asset management, create a clear organizational structure and abandon "too private" coins.
Microsoft Corporation announced Azure Blockchain Workbench, which is a "full-fledged resource for the blockchain application" and can be configured "in a few clicks".
Messenger Telegram created Telegram Passport - the first service for the future blockchain platform of its TON cryptocurrency - and tests it in closed mode. Telegram Passport will allow to identify the identity of the users of the messenger, collecting photos, passport data, international passports, driver's license, certificates of bank accounts and other documents. The final list of mandatory data is still unknown.
According to the creator of the ethereum Vitalik Buterin, 1,500 broadcasts are required to participate in the testing of the Casper update. The high price is partly due to the problems of the current scaling of the etherium (the consensus protocol simply can not support more than a certain number of nodes). Nevertheless, the implementation of shading should reduce this figure to 32 aether ($ 25,856).