Mark Karpeles, the former Mt. Gox manager, is starting a new drama.
As the author of the new book “encrypted currency 3” (Cryptocurrency 3), Fatah said in an interview this Monday that he supports improving the security of block chains and bitcoin, “if bitcoin continues to use the current encryption technology, it is very dangerous.”
In addition, he became a CTO of a block chain company, hoping to start again.
In February 2014, fatfat announced that hackers had stolen 850 thousand bitcoins from Mt. Gox in the previous year. The website was originally a magical trading place, and later evolved into a formal bitcoin exchange. It was the first place where many famous people in the circle bought and sold bitcoins.
The company is bankrupt. FA fat admitted the mistake, and the Japanese police arrested him. In short, this hacker attack has become an important moment in the industry of encrypted money. In a flash, the industry turned from a smart gadget to a serious and expensive business.
“Although I won the lawsuit in March 2019, I am sorry to have caused great losses to the customers, causing inconvenience to the relevant personnel.”
In the interview, he explained how difficult it was to run a famous exchange in his Japanese office.
“When I took over the management of Mt. Gox in 2011, I worked with members of the field and lawyers from different countries to cope with the system problems, and these problems were discovered one after another, and the volume of transactions increased rapidly. I was watching it for 24 hours. At that time, if I could sleep for two hours, it would be great. Because of jet lag, I sometimes arrange a meeting at 2 or 3 o’clock in the morning. “
“Perhaps now, people who run virtual currency exchanges have learned to deal with this pressure. However, as long as risk management is handled by manpower, human error can not be avoided.
Fatfat set up block chain company
After getting rid of most of the charges in the Mt. Gox case, FA fat revealed that he hoped to start from scratch by a new block chain project.
His new company will develop a security system based on block chaining, which will exceed the existing system.
FA fat will be the CTO of Tristan Technologies Co., a newly established Japanese company.
He seems intent on restoring his reputation in Japan. He said he hoped the technology would help Japan return to its former position as a global technology leader. In recent years, Japan’s advantages have been gradually taken away by Apple giants such as apple, Amazon and Facebook.
“For personal computers, Japan was once a superpower in the engineering field, but now, taking cloud computing as an example, the United States is dominant. But I still believe in Japan’s potential, and I am willing to exploit this potential. “
According to reports, the former chief executive of Mt. Gox said he does not currently have any encryption currency, which is a high-risk asset. “I will not say that I am very rich today,” he added.
Bitcoin security needs to be rebuilt
Fatah now believes that bitcoin security infrastructure must be rebuilt.
“Virtual currency still has the risk of being stolen because personal computers or hardware wallets are likely to be hacked. In other words, it is still impossible to eliminate risks with current mechanisms and technologies. The innovation of cryptography must be done. “
The key is encryption technology. Bitcoin itself has used a technology called ECDSA from the very beginning, and has never been attacked by hackers. However, because of the impact of hacker attacks is very difficult to eliminate completely, you must know that there is no permanent security encryption technology. If bitcoin continues to use the current encryption technology is very dangerous.
Fatter hopes that security is as simple as migrating from the standard “HTTP” to the web site protected by the cryptographic socket protocol layer (SSL) or the transport layer security protocol (TLS) — and visible.
So he announced the establishment of the new company called Tristan Technologies Co, aiming at developing the new technology.
He said he still felt the space of encrypted money was amazing. Some people are still talking about this young man taking over an early exchange and making the world a sensation.
“As I wrote in the book” encrypted currency 3 “(Cryptocurrency 3), I like Japanese animation, but one of the most impressive movies I have seen recently is the the Promised Neverland. This cartoon tells the story of a group of children escaping from their trapped place. How can every child face cruelty and unfriendliness? I watched this cartoon with interest.
The reality of encrypted money is grim. However, I do not think a strong organization can make decisions easily, but I think a system that can provide a choice for each participant is the best. If it succeeds, everyone will wait for an important decision even if there is a security problem, and it is impossible to find a solution immediately. “
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Tencent supported instant messaging App Kik raised $150 million in August 2017 1CO. A few weeks before that, SEC (SEC) issued a guide saying that 1CO might constitute an illegal issuance of securities. Therefore, it was not surprising that Kik received one of the submissions issued by SEC last year to the encryption project.
But in November last year, SEC informed Kik that it was considering enforcement actions against Kik in violation of the US Securities Law. Why is this important? It may reveal some information: how far is the regulator willing to extend the existing laws to reach the encryption project?
There are very few accurate information that can be accessed in regard to the actual mode of work of regulators. I share my findings in the context of the government and technology industry: how the SEC survey took place (all industries, not just the encryption industry), and how the use of the Internet affected the “Kik’s encryption currency whether it is regarded as a securities”, and what will happen next in the industry.
In December last year, Kik submitted an essential legal briefing. Usually, SEC will give people an opportunity to sue before enforcement action. But now, it is not far away from SEC to decide whether or not to take enforcement action against Kik for 180 days.
We are not Kik investors, but Kik’s argument in this process is interesting because they represent the whole industry’s response to emerging technologies, because it is not yet clear which regulations are applicable and how they should be applied.
1. What did SEC do and how did the case start?
As an independent body within the federal government, the main functions of SEC are to protect investors, maintain a fair, orderly and efficient market, and promote capital formation. In order to achieve its goal, SEC has formulated a series of regulations, and its law enforcement departments have jurisdiction over the United States and overseas personnel and companies in order to ensure compliance with these regulations, at least in the case of overseas acts that have a major impact on the United States or take significant measures.
Most SEC surveys start with matters under inquiry or MUI, and SEC can start without reason. They are initiated in a variety of ways: sometimes they are initiated externally, such as complaints from investors or investors.
But they can also come from internal initiatives of law enforcement officers, usually because of media reports or some internal data analysis projects. Or they can be recommended from other agencies or SEC departments, such as compliance inspection and inspection office, FINRA, state securities regulatory body, Congress or judicial or financial department.
The first step of MUI is to publish requests for documents, but it is optional to comply with these requests. In fact, in the MUI stage, SEC staff have not yet obtained the summons. The only person who has to give up information is the entity registered in SEC, such as broker dealers and registered investment advisers.
Within a few months after launching the MUI, SEC staff decided whether to proceed. If they want to do so, SEC management must approve a formal investigation order (rarely rejected). The true meaning of this stage is that the SEC staff are entitled to summons at this time – and can force the investigation of documents and swearing testimony, or may obtain testimony from anyone else who may get information.
Although SEC summons are not popular, it is wrong to equate them with the ultimate law enforcement action. A summons is only a way for SEC to gather information (including collection from third parties), so it can decide whether to take further actions.
The summons receiver can obtain a copy of the official investigation order at any time, but few people use or know that they have the right to obtain the investigation. These investigations do not provide much details, but will reveal the contents of the investigation. SEC staff usually provide some concerns in subsequent discussions.
If SEC staff decide to conduct an investigation, they will want to be as strong as possible in case the court finally appeals. Therefore, they may issue additional summons or interview more witnesses. A former SEC law enforcement director once called it “investigation litigation”.
Two, Wells process, Kik, controversy
If SEC staff decide to take further action after examination of evidence, they usually provide Wells notice. This is basically a letter or a telephone call to let the main body know that SEC has initially decided to recommend enforcement action.
The idea here is to involve participants in a round-trip decision whether to submit a written statement to explain why they are not a particularly good goal, or why SEC may fail in the argument of the case, or to request a higher level meeting.
A striking Wells’s Wells submission actually allows staff to reconsider the original plan of law enforcement action, and it is estimated that the probability of such an occurrence is about 20%. But there are two disadvantages in participating in the process: the Wells proposal may also help SEC to try to solve the weaknesses in the case before deciding to initiate a lawsuit; and the statement of Wells’s proposal can also be used for the theme of future investigation.
Kik took part in the Wells Process (Wells Process), but they made public the submitted reply, and through it let SEC know that their company will take SEC to court.
This is unusual because the Wells process is usually private, and the parties usually do not say to SEC – conversely, the parties usually say that no action should be taken. This is serious and has put more pressure on SEC to decide whether to take Kik as a leading case in 1CO, a test case that tries to solve widely controversial issues.
The arguments presented in this process are interesting because they represent how the whole industry is dealing with a new technology, and it is not yet clear which regulations are applicable and how to apply them.
I find Kik’s submission response very noticeable, especially from the perspective of people who have been observing and co operating with entrepreneurs for some time.
One thing I learned over the years, especially in the work of a federal judge, is that you can read a briefing on one side and think, “this is the case, they obviously have won the argument of victory”, and if you only read the other party’s briefing and think, “it doesn’t matter, in fact, this person has the winning argument”.
At present, we haven’t seen the briefing of SEC to evaluate their arguments. If we appeal later, we will see later.
But Kik did a good job. They stressed:
(1) their encrypted currencies are consumer goods, known as “Kin”, and their integration with millions of active users of Kik, that is, focus on using;
(2) they are trying to find a way to replace advertising based monetization of digital goods and services records, which is a way of competition with FAANG companies.
(3) their good faith compliance efforts – the completion of KYC / AML and OFAC screening, tax payment for token sales, and their self restraints in certain jurisdictions.
Is encrypted currency a real security?
Kik put forward a direct and thorough legal argument that all currencies are not bound by securities law. Kik believes that, since the government has already said that the encrypted currency is money, they can not regulate it as securities. So SEC must let go.
This statement is based on the definition of securities both existing in the trading law and the securities law. Interestingly, the “transaction law” explicitly excludes the currency in the definition of its securities (the term “securities” refers to any bill, stock, stock stock, but not currency), but the securities law does not include or exclude “currency” in its definition of security.
Is money excluded from legal limits? The Kik proposal does not involve some important statutory building codes – the rules of thumb that help the court determine legal significance. You can hardly blame them because SEC has almost no chance to run parallel with SEC on the lack of jurisdiction over encrypted currencies. So, really, Kik is only attacking SEC’s arguments that may be brought to the court on the way ahead.
The more interesting question is whether encrypted money is legally a currency.
Whether or not money can become a securities, the more interesting question is whether the encrypted money is legally monetary. At first glance, given that some of its earlier statements define the currency as “currency”, it seems hard for the government to say that Kin is not a currency.
On the other hand, some courts believe that “currency” means legal tender, which means that if it is provided in the form of debt repayment, it must be accepted. Now, although Kin may be used, Kin is not legal tender. It is expected that the court should pay attention to the simple meaning of the term “currency” when solving this problem.
Where does the Howey test come in?
Kin is not a more predictable argument for securities, which is now a familiar Howey test. The test shows that, if there are the following conditions, it is considered as securities: (1) investment funds, (2) the common enterprise, (3) gain the profit expectation through the efforts of others.
The best argument for Kik seems to be (2) that there is no common enterprise between them and Kin buyers. The court believes that the sale of something rather than more promises will not produce a common enterprise. In accordance with the public information I have examined, Kik’s obligation to the buyer is not obvious except for the delivery of tokens.
Once the delivery occurs, Kin holders control their tokens and use them according to their wishes – whether they are buying goods or other ways, and so on. Kik created an open market to achieve real communication among participants, so Kik is not necessarily a participant in all transactions.
So, (3) what is the expectation of profit through others’ efforts? In his Wells response, Kik tells a good story about consumption, because it integrates with the communication platform, and the communication platform has millions of users in token sales.
Apparently, 20% of Kin buyers link their wallets with Kik to buy everything from games to digital products and services. Some participants bought only 9 cents at Kin, which seems to be “using” rather than “investing”.
If I am defending the case, I want to know how many people have bought such a sum of money, because this is a strong evidence of “consumption rather than investment”. I will also collect the statements of several purchasers of Kik, in order to use them to explain in detail how they use it.
SEC is also likely to have more evidence against this argument – as we know, they have interviewed dozens or hundreds of people who only buy Kin for investment purposes. Of the 10000 Kin purchasers, there are bound to be two categories: investment and use.
But anecdotal evidence about the reasons why buyers buy Kin is not related to the evidence that Kik guides buyers. This is because the case law pays little attention to the idea of the particular buyer at that time, and pays more attention to the contents of the seller’s “offering or undertaking” the purchaser.
So the key is what Kik can be attributed to before sales, which is a good example of how public relations, marketing and other company building functions are really important in many encryption projects.
The focus of the law is not on the idea of a particular buyer at that time, but more about the seller’s “offer or commitment” to the buyer’s content.
Kik says its main marketing information is focused on the use of Kin rather than Kin as an investment, which makes sense because the project is effective only when people actually use Kin. If this is true, SEC will need to deal with some of the facts:
(1) 50% of token sales participants bought less than $1000 of Kin, which seems to be more in line with the debate over consumption and investment purposes.
(2) the way Kik builds things encourages widespread participation and discourages speculation, for example, limiting the amount of personal purchases to ensure that more participants use their networks.
(3) it delays the sale of tokens to ensure that the functions of the network are first ensured and that it can now be used for the future.
(4) since the sale of token money, the use of Kin has increased.
Of course, we do not know what additional facts, documents and witness statements SEC has gained as part of its own investigation process. Is there an e-mail or witness to confirm the fact that it is contradictory to the Kik document? Even the video of the conference is talking about the planned 1CO, just like the CEO. If SEC wins in the Howey test, it is best to have more evidence in this regard.
Three, what’s next?
In a typical Wells process, many people choose to close their cases, whether they know they will fail or because they think that fighting with SEC will be costly and distracting, or because they do not want to fight major regulatory agencies and face more severe sanctions.
Facts are objectively bad. For example, the e-mail of Equifax insider is about how he can exercise all his options before reconciliation. The vast majority of cases have been resolved, which is what SEC knows and relies on, because if everyone chooses to sue, there is not enough resources to solve all cases.
Reconciliation is usually submitted as an administrative order and automatically takes effect. Reconciliation is not common in court. These reconciliation applications are subject to very few court reviews and are usually approved.
Kik told us in Wells’s reply that it did not reconcile.
Therefore, if neither side reconciled – or SEC was not persuaded in the Wells process – SEC staff suggested enforcement action. The reason why I say “recommend” is that SEC law enforcement departments can not act on their own initiative. Most of the 5 members must vote before proceeding.
The law enforcement department wrote a memorandum to the committee, recommended action, attached the views of Wells’s proposal, and had to prepare to answer the Commissioner’s question. Most of the votes are identical, but there are only 4 members, so there may be a split vote.
If SEC staff propose to implement and there are 2-2 split votes, the implementation action will not be carried out. Although this is a good result for Kik, it will leave the possibility of taking enforcement actions against similar facts in the future, and will not provide meaningful guidance for the encryption industry.
In the case of 3-1 voting, action will be taken, but we may also see different opinions – objection may produce an important signal effect, that is, there is sincere disagreement between the public, the Congress and the facts or laws of the public.
What other potential outcomes are there? SEC staff can convince Kik’s Wells to reply that the case is not the best tool for action (based on open facts, which I think is not the case), and therefore chooses not to recommend action.
The whole point of Wells process is to make full use of argumentation. Such a result is a good result for Kik, and is also true for the wider field of encryption, especially if the reports issued by SEC provide prior reasoning.
In theory, the compromise is another possibility, but it seems unlikely that the Kik declaration will bring the struggle to court, and Kik has the financial resources to do so, unlike some start-up companies. Nevertheless, the settlement plan is not a good result here because it will leave unsolved important legal issues.
The solution is not law. Only the court can tell us what the law is.
Why should we solve problems for entrepreneurs and other technicians working in emerging fields? Because for the identified cases, SEC has great influence in drafting the solutions, which will divide the law into black and white. The solution to SEC is not law. Only the court can tell us what the law is.
Therefore, if more courts weigh the content of the securities law applicable to the field of encryption, it may actually benefit the encryption industry and eliminate some regulatory uncertainties. After all, what is the relevance of the case law of 1944 – for companies before the software age – and what we are now doing to centralization of autonomous organizations in 2019?
The Kik case is an early example of interesting issues in the field of encrypted money, and we will soon find out what SEC stands for.
One of the most common misconceptions I hear is that “SEC will put them in prison clothes”. This is not true, because SEC can only bring civil cases. But they can submit questions to the Ministry of justice. Sometimes these two agencies will bring parallel cases (such as Theranos).
However, this is rare because criminal cases require criminal intent and are more burdened by evidence beyond reasonable doubt. SEC only needs to prove the advantage evidence, which means that SEC’s statement does have a probability of over 50%.
All this is not to frighten anyone to create interesting things. This is just to let entrepreneurs know about the process of the securities and Exchange Commission. So what can you do besides observing how this particular situation works?
If we appeal to the courts, we will see various projects, foundations, non-profit organizations and scholars participating in the amicus briefing. “Amicus” refers to people who are not interested in the subject but are part of the case. This briefing is very common, especially in important cases that raise new questions. A good Amicus briefing is very convincing for the judges.
But in addition to observing this situation, the best way of thinking for uncertain navigation is to consider how events should deal with facts. You always want to prove your sincerity, common sense and rationality. But when people can do this, they are extremely unlikely to become the best (or winning) tool of the government, so we should look at everything from this perspective.
Author: Katie Haun
Translator introduction: ELO ox, block chain research society contributing author.
Statement: This article is an independent view of the author and does not represent the position of block chain Society (public number), nor does it constitute any investment advice or suggestion.
Original link: https://a16z.com/2019/05/15/kik-and-the-sec-whats-going-on-and-what-does-it-mean-for-crypto/
Author: Martha card
Last weekend, Bloomberg said in an article that bitcoin prices were rising again, but it was hard to hide a disturbing fact that few people used bitcoins other than speculation.
Bloomberg’s argument is mainly due to a small survey by Chainalysis, a block chain data company. Only 1.3% of the bitcoin transactions in the first 4 months of 2019 came from merchants, which is basically the same as the previous two years.
For this reason, Bloomberg has thrown the pot to the HODL of bitcoin: “bitcoin has been widely publicized to make it believe that it can be a substitute for currency, but now it has formed a” Hodler culture “that encourages hoarding rather than consumption.
That is why bitcoin can’t go into daily payments and can’t be used by more people because Hodler is too much? I think what Bloomberg may have misunderstood about Hodler or the special currency.
Has Hodler hindered the development of bitcoin?
In the past ten years, bitcoin has not become a popular payment method, it has nothing to do with the quantity of Hodler, and it has no causal relationship with the behavior of buying and selling.
For hoarding people, they are concerned about prices, the higher the better; for those receiving payment, they are concerned not with price, but volatility, convenience and cost. Because of the existence of the lightning network, the latter two factors can be ignored, so volatility becomes a key factor.
I believe that any businessman who normally does business will not think much of the money he has just received, and will be beaten ten percent off in the next minute. Although there are many businesses that accept bitcoin payments, they usually choose to exchange bitcoins from bitcoin to cash to avoid losses caused by currency fluctuations.
More than Bloomberg, there are many people in the reality of “alternative currency to become the mainstream means of payment” as a sign of success or failure of bitcoin development.
Although the mainstream payment method can make bitcoin more mobile, but “hard to become a means of payment” is a big pit compared with the special currency.
At least, it seems that in the daily life, the use of bitcoin payment can not only provide a variety of options, but it is no more convenient than the mainstream payment methods such as Alipay and UnionPay (of course, transnational transfers and transfer of assets are no longer discussed).
If it is now artificially interfering with market options, it may be counterproductive, making bitcoin a lame thing.
So, even now that Starbucks, Amazon and Apple support bitcoin payment, it does not mean that bitcoin has been squeezed into the mainstream payment tools. At the very least, we need to put “bitcoin into a daily payment tool”.
Value storage or payment means?
In fact, bitcoin today is more like a value storage tool.
Venezuela is a good example. When a country has very high inflation and the depreciation of the French currency is serious, bitcoin will become an excellent hedge. Venezuela’s legal tender, Bolivar, now has nothing to do with waste paper. How can bitcoin fluctuate again, and it is impossible to achieve a depreciation rate of 10000000% a year?
The reason why more and more people join bitcoin HODL group is because they believe that the price of bitcoin will continue to rise in the future, although there will be no change in magnitude within one or two years, but five or ten years will probably reach an unattainable price.
It needs to be clearly pointed out that the 21 million ceiling is not the main reason why bitcoin has become a means of value storage. Rather than deflationary monetary policy, the centralization, corruption and tampering of bitcoin is the key to protecting bitcoin as a valuable storage tool.
But will bitcoin always be a “value store”? The answer is also negative. Accurately, bitcoin will have two functions of value storage and payment in the future.
The two are not opposites. Gold as a value store also has the function of payment in history, and bitcoin as a value storage tool can also help it become a payment tool. It can be said that only when most of the people in a society recognize the value storage of bitcoin, bitcoin can become one of the mainstream payment tools.
In this article, Bloomberg said: “the future of bitcoin, which is conceived by China, can be used in daily transactions, buying coffee or paying for car rental.”
And no matter what Zhong Ben has never said, bitcoin has been developing for ten years. Today’s form is the result of market choice. Although bitcoin is a point to point electronic cash system, it does not necessarily have a “payment function” like cash, which represents the success of bitcoin.
Translator Wang also
Editor Lu Xiaoming
Produce Odaily planet daily
In June 5th, according to the Japan daily news, the former CEO, Mark Karpeles, now declared bankrupt of the virtual currency exchange Mt. Gox (the “Mentougou exchange”), revealed that he would register a new block chain technology company Tristan Technologies Co. (referred to as “Tristan”) in Japan and served as the company’s chief of CTO (Chief Technology Officer).
According to Karpeles’s external statement, Karpeles aims to help Japan become a global leader in the field of block chain technology. Tristan plans to design an updated, safer and more high-speed block chain operation system, which is better than most of the existing block chain operating systems.
In addition, the 34 year old French man said in public speech: “my love for Japan has not changed. Taking laptop computers for example, Japan was once a superpower in the engineering field, but now, taking cloud computing as an example, the United States is dominant. But I still believe in Japan’s potential, and I am willing to exploit Japan’s potential. “
According to the daily news, Karpeles said that the new company Tristan will start from scratch and confirm his confidence in the potential of new areas such as cashless chain payment, cloud solutions and building intelligent contracts. However, when asked whether he owned the encrypted currency, he said no, and claimed that the risk of encryption currency was very high.
As reported by the external media, Karpeles is a computer wizard who has a strong interest in comics and games, and moved to Japan in 2009.
In 2011, Karpeles bought Mt. Gox and turned it into a 70% head exchange that once occupied the world’s bitcoin trading volume. Soon after February 28, 2014, the Mt.Gox exchange filed for bankruptcy protection, and declared that the hacker had stolen 850 thousand bitcoins due to hacker theft. At that time, the value of the bitcoin was about $475 million (200 thousand were recovered in March), and the Tokyo District Court began to go bankrupt in April. In August 2015, Mt.Gox CEO was arrested by Japanese police. From 2015 to now, the court still did not make a final judgement on it.
In March 15th this year, Japanese prosecutors formally announced the verdict on Mt.Gox CEO Mark Karpeles, and the “Mentougou” case finally settled.
According to Bloomberg news, the Japanese court of Tokyo confirmed that the Mt.GOX Mark Karpeles, the head of the digital currency exchange, was convicted and sentenced to 2 years, 6 months and 4 years’ probation. It was convicted of tampering with financial records, but was charged with corruption.
The collapse of Mt. Gox brought a series of butterfly effects to the market at that time, causing a plunge in the price of digital money for more than two years and weakening people’s confidence in the exchange. Even after the 2017 digital asset boom, the legacy of Mt. Gox continues to affect investor sentiment. In 2018, the collapse of bitcoin was partly attributed to the custodian of Mt. Gox remaining assets selling about 60 thousand bitcoins, and plans to allocate the remaining funds to investors affected by the closing of bitcoin exchanges.
The news of the 2019 Buffett benevolent luncheon was recorded at the record price of the new generation of “90 million dollar circle”.
After more than a year of silence, bitcoin prices rose strongly in May, and the highest increase was more than 70% in the month. Compared with the low of 3500 US dollars at the beginning of the year, the increase is even 150%, which is one of the best investment targets this year.
At the beginning of June, bitcoin prices fell sharply. As of press release, the gate.io platform offered a price of $7750. In the eyes of the outside world, there seems to be no logic in the rise and fall of the currency price, but in the eyes of the industry, everything is traceable. Admission of mainstream institutions, stronger consensus and USDT are signs of market transformation from bear to cattle. With the rise in the price of money, the price volatility is also increasing.
Bitcoin’s best assets in adulthood
Compared with $3500-4000 at the beginning of the year, bitcoin’s highest growth rate has exceeded 150%, making it one of the best investment targets this year.
In May 1st, the lowest price of bitcoin was $5320. In May 4th, it broke through the $6 thousand mark, and then broke through the 7000 and 8000 US dollar pass. In the early morning of May 31st, it broke through again by a sharp break of 9000 US dollars, and dropped rapidly after 15 minutes.
Demand side force and price rise complement each other. When prices begin to bottom up, there is a distinct upward trend in approach capital. At present, the price of USDT is US $7.16, which is 3.5% higher than the US dollar and RMB exchange rate. Investor Chen Yan believes that at present, there is a lack of substantial investment targets on the global scale, long-term volatility of commodities and relatively high stock prices. At the same time, bitcoin prices are relatively low, and $3000 will be considered an excellent entry point.
The contract emperor COO duwan told a broker China reporter that from the historical trend, bitcoin rebounding from $1150 to US $150 in 2014, it has springback six times in the vicinity of US $300-400, and has fallen to 150 US dollars seventh times. In 2018, six US dollars from 20000 US dollars were tested for 6000 US dollar pressure, and then seventh fell to more than 3000 US dollars. In 2015, bitcoin tried to break through $300 from $150 for two consecutive times, but failed to rise to $520 third times. The difference is that the first time it broke through 6000 dollars.
6000 dollars was once considered an important resistance to currency prices. After the first breakthrough in May 4th, the market generally thought it would be callback, but only three days later, it was firmly in the position and continued to go up. “This is a process of bargaining chips.” Du Wan said that there was a large number of empty seats in the position of 6000 dollars, 6500-7000 dollars exploded the high leverage, and the lower leverage broke out in 8000 US dollars, so it was normal for the main force to pull up to nearly 9000 dollars.
“Many people are surprised that this increase is so rapid. In fact, the logic is very clear.” Ren Wenhao, a senior digital currency trader, told Chinese reporters of securities business that first, when the bitcoin price was around us $3000, there was a large amount of funds to absorb chips. We must profit by pulling up the shipment. Two, the main force was to attract attention and money through a rapid increase.
Chen Yan believes that the logic of the rise of the current round of subtle changes, mostly hype before, but recently from the transaction time and disk observation, the current round of rising driven by overseas markets, “the recent several pulls occurred in the early morning, and all started from the Bitstamp platform. China’s trading partners are basically in the currency or OK. This exchange has fewer users in China. It is very likely that the main force of this wave is driven by foreign countries. Chen Yan said.
Xiao Lei, a senior digital currency analyst, told broker China reporters that the rise in bitcoin prices was not a geek’s utopian vision, nor a dream of the riches of grass-roots retail investors. Instead, many international rich clubs began offering bitcoin services to the super rich.
Xiao Lei said that since the beginning of last year, Goldman Sachs has been involved in the bitcoin market in a high profile. First, it asked users to compare the price of special currency, and then began to use its own capital trading bitcoin futures on behalf of customers. In September last year, Morgan Stanley planned to introduce a price returnswap bitcoin derivative to its customers. In March of this year, FDAS, a digital asset trading and trusteeship group under the fortune trillions of the world, began to support the hosting of bitcoin assets. In the future, the allocation of digital assets by mainstream institutions is a noteworthy highlight.
Buffett again detonated coins in lunch
In the early morning of June 4th, Sun Yuchen released a message through micro-blog, saying, “I officially announced that I won a record 20 Buffett charity lunch auction. I will also invite the leaders of the block chain industry to meet the investment leader. I hope this will benefit everyone.
You know, Sun Yuchen won the Buffett charity lunch for $4 million 567 thousand and 888 and set up a Buffett charity lunch auction record. This move, in addition to let Sun Yuchen fame, the money circle once again returned to the public view.
However, from the perspective of reaction, block chain and encryption community seem to be not very popular. The Chinese reporters of securities companies have noticed that on the same day, whether WeChat group, circle of friends or micro-blog commentaries, many people think that this is another marketing behavior of Sun Yuchen. A circle of media people in the circle of friends said, “Sun boss spent about 30000000 RMB to eat a meal with Buffett, do a round of communication, pull a plate, cut a wave of leek, and came back. Indeed, he admires sun boss’s courage, and every time he decides the input output is very strong.
More interesting is that Buffett and his old partner Munger are not the supporters of virtual currencies such as bitcoin. On the contrary, Buffett has publicly criticized bitcoin in many occasions, and has clearly stated that bitcoin is not investing two in gambling, and it will not invest 10 Fen in it.
When bitcoin was more than 100 dollars, Buffett said bitcoin was a rat poison. When a reporter asked him, bitcoin rose from $more than 100 to $more than 9000. What’s her view on this? Buffett replied, “it may be the square of rat poison.” At the fifty-fourth annual general meeting of Boxill Hathaway, held in May 4, 2019, Buffett said bluntly that bitcoin speculation reminded him of gambling in Las Vegas.
So when the news came out, the first reaction was how to eat this meal. And how Sun Yuchen “sold” bitcoin to Buffett has also become the focus of attention.
Bitcoin is not a risk aversion asset.
Compared to the unilateral rally in May, bitcoin prices began to fall after the high inflation trend in June, and the price has fallen below 8000 US dollars.
In the view of Du Wan, bitcoin has been rising four weeks at the weekly level, and there is a demand for callbacks in terms of technology. “The cost of entering the capital is about $7400-8000. If the volume falls below US $7000, the new short-term or speculative capital will probably be cut off. If this kind of clearing occurs, the price of bitcoin will be reduced to $6000.” Ren Wenhao told reporters.
It is worth noting that although bitcoin rose in May, the once popular Shanzhai coin did not keep up with the rise of bitcoin. Most currencies had little fluctuation in price. In this regard, duwan believes that the cottage money is originally lacking in value and consensus, and that the market is transformed from bear to cattle. Ren Wenhao believes that the cottage coin is a highly manipulated market, whether the price will rise depends on whether the dealer has the desire to pull the plate.
The rise of prices is likely to cause market speculation. Along with this round of rising prices, one voice is that bitcoin has become a hedge asset. The main logic of this view is that bitcoin will become another asset allocation option when other assets are not performing well. “Bitcoin is still a risky asset.” Chen Yan believes that the current price of bitcoin is still the main factor of speculation, and can not be equivalent to gold, but because this year bitcoin gains beat other targets.
Zhao Jian, Dean of the Cesar Research Institute, believes that in fact, the pricing power of bitcoin is still US dollar, so there is still no absolute escape from this system. Zhao Jian said bitcoin issuing discipline and gradual strengthening of the rules of consensus, making it more and more similar to hedge assets gold. But unlike gold, bitcoin has no practical value. The digital assets of bitcoin form a rule consensus through algorithmic technology, thus forming a predictable growth curve. With the strengthening of consensus, assets are formed – traders in the current period need not worry about not having the next “receiver”.
Source: China Securities Broker
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On Wednesday, encrypted currencies generally fell, with bitcoins falling below 8000 dollars.
The 24 hour data show that up to 20:40 Beijing time (08:40 a.m. EST), bitcoin fell 2.32%, to $7779.2, down 15% from the 9100 US dollar hit last week.
At the same time, the Swiss currency fell 3.32% to 0.40025 dollars; the ethereal side fell 1.14%, which was quoted at 245.05 dollars; EOS fell 4.68%, and reported 6.3937 dollars.
On the previous day, the encryption money market plummeted, and the main encryption currency fell by over 10%.
The reason for the decline is not yet clear, but some people blamed the collapse on “bitcoin whale” high selling and low buying, that is, selling lots of bitcoins at high prices, but then buying at a price after a big drop.
Bitcoin whale refers to those who own 10000 bitcoins. Because of its large number of bitcoins, bitcoin whale is notorious for its huge influence on price movements and its ability to cause sharp fluctuations in the market.
In other news, the SEC filed a lawsuit against Kik, a social media start-up company, which accused the company of violating the securities law in 2017. The ICO of about $100 million has also affected the mood of the money market.
Meanwhile, the recovery of risk assets also inhibited the rise of the encrypted currencies. Earlier, Federal Reserve Chairman Powell suggested a cut in interest rates to boost global stock market rebound, with the US stock market hitting its biggest one-day gain since January.
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Media: Wu Chi Han will launch Matrix before the end of July, bit mainland or the main user.
The former CEO, Wu Chi Han, will launch a new start-up company Matrix by the end of July. It is reported that Matrix was first hatched inside the bit continent, and bit continent will then become a major customer of the company. According to sources, as the main partner of bit mainland, Matrix may become “the largest OTC platform in the world” overnight. Details about Wu Chi Han’s latest joint venture have not yet been disclosed. (The Block)
Kik response: the accusation of SEC is based on a defective legal theory, and the allegations are highly selective and misleading.
Kik Interactive responded to the lawsuit filed by SEC against illegal securities sales. Ted Livingston, chief executive of Kik, said: “we hope that this case will make people understand that the securities law should not be applied to a currency that is used by millions of people in dozens of applications. For the fact and situation of Kik’s pre-sale and token issuance activities in 2017, SEC’s allegations also present a highly selective and misleading picture. We look forward to telling the whole story in court. ” Earlier, the US SEC announced the prosecution of Kik Interactive, which was suspected of issuing $100 million in illegal securities issuance (Newsletter).
Reddit users: BSV may face 51% attack risk
According to Reddit’s article, a group of ore pools recently controlled more than 51% of BSV’s computing power, up to 52.78%, which is very close to being attacked. A few weeks ago, similar things happened in BCH. At that time, a BTC.top mine controlled nearly 54% of the calculation. (AMBCrypto)
Mt. Gox pre CEO Mark Karpeles plans to launch new encryption related businesses in Japan
In June 5th, Mt. Gox former CEO Mark Karpeles attended the press conference of the Japanese Foreign Correspondents Association in Tokyo, Japan. Karpeles is now developing new businesses around the encrypted currency that led him into legal trouble. Karpeles told reporters at the conference that he wanted to make Japan a global leader in block chain technologies such as bitcoin and other encrypted currencies. (The Bellingham Herald)
Bithumb Global announces that its stable currency is about to come out.
On June 5th, Will, head of Bithumb Global, Bithumb international station of Korea exchange, said in an interview that BG’s compliance stability currency will soon be available. In the interview, Will also revealed that because of South Korea’s supervision, Bithumb did not plan to issue platform currency, but BG had a platform currency plan. (Babbitt)
Diar: US market stability currency trading share is decreasing.
The Diar report shows that demand for stable currencies is rising in the Chinese market. However, the trend in the US market is just the opposite. The trading share of the stable exchange traded in the US exchange has dropped from 44% in 2017 to less than 10% in 2018. (Finance Magnates)
Block chain application
Lotte co operates with Japan’s largest railway company to promote cashless payment.
Japan’s e-commerce giant Lotte has worked with Japan’s largest railway company JR East to promote cashless payment, which is expected to be launched in the spring of 2020. According to the 2018 earnings report released by Lotte, the update of Lotte payment application may help to support the payment of encrypted money. (Cointelegraph)
Dixy, Russia’s third largest retailer, uses Ethernet technology to streamline trade financing processes.
After six months of pilot phase, Factorin, a Russian block chain start-ups, announced on Tuesday that it will work with Dixy to launch its new trade finance platform. Dixy, the third largest retailer in the country, has become the first major customer of Factorin. The new system is developed on the private version of the Ethernet site, allowing Dixy suppliers to receive payment within one working day instead of the first two weeks. (CoinDesk)
Analysis: AMD will cooperate with Samsung to promote cipher currency and smart phone mining.
Samsung and the US multinational IT Advanced Micro Devices (AMD) announced the establishment of a long-term strategic partnership. The former will get the graphical IP authorization for mobile GPU from the latter. Beincrypto article analysis this may promote the development of smart phone encryption money mining business, although mobile mining is not yet realized, but the development of low power GPU may stimulate mining enthusiasts to carry out experiments. (Beincrypto)
Japan’s Internal Revenue Service: at least 50 people and 30 companies are missing billions of yen in virtual currency transactions.
In the years up to March 2019, at least 50 people and 30 companies in the trade with virtual currencies have reported a tax leak in the confirmation process, with a total of about 10 billion yen, the Japan National Tax Bureau said. (Asahi Shimbun)
The European Commission: Malta needs to improve its preparation for the crime of encrypting currency.
According to Malta Today, the European Union has indicated to Malta that Malta needs to improve its existing resources to combat potential financial crimes because of the popularity of the encrypted currency. In addition, in the aspect of corruption, we should also solve conflicts of interests that may exist at all levels of government, and at the same time, we should re evaluate the duty of taxation. (Cointelegraph)
The Reserve Bank of India denies participation in drafting a bill against currency encryption.
In the written reply from the Reserve Bank of India (RBI) to the recent RTI application, the Reserve Bank of India said: “they have not received any letter from any department, nor have they sent any letter to any government department related to drafting the bill.”
Israeli central bank executives: Israel will not issue national digital currency in the near future.
On Tuesday, Sigal Ribon, head of the Monetary Policy Department of the Israeli central bank, stressed that Israel did not intend to become the first developed country to issue the national digital currency at the annual summit of Bit2C, Israel’s encryption currency exchange. The reason is that Israel is relatively lacking in technical structure, and our infrastructure is far from being able to contribute to this. (Finance Magnates)
Sun Yuchen: I’ll bring a HUAWEI mobile to lunch with Buffett.
Coming and going (Sina micro-blog CEO Wang Gaofei) said in micro-blog, “Buffett is not using Samsung to flip the non intelligent machine, it can’t install App.” In response, Sun Yuchen said in micro-blog, “I take a HUAWEI mobile phone to go.” Odaily Star Daily Note: Sun Yuchen, the founder of the wave field TRON foundation, has said that I might make a small request at luncheon, that is, I hope to install the first digital money wallet on Buffett’s mobile phone, and then I hope to be able to give him a little bit of currency. It is possible that the wave money will become the first virtual currency in Buffett’s life. Odaily I want to teach Buffett how to send and receive virtual currency, and how to use these virtual currencies in the world of centralization.
Jimmy Song: for Buffett, it’s too early to accept encrypted money.
Jimmy Song, the core developer of bitcoin, said that in his view, the current (accepted encryption currency) was 10-15 years before Buffett. Those who need to be persuaded are those who are tired of ICO, hyped up venture capital companies, pension portfolios who want to diversify their portfolios, and a family management room that considers bubbles in real estate and stocks. (AMBCrypto)
BB:B1 has hundreds of millions of advertising budgets and plans to attract KOL to Voice.
In the evening of June 4th, Block.one CEO BB continued to answer the community’s questions about Voice in telegraph group, expressed the hope that Voice could be used in various countries, and said that B1 had hundreds of millions of advertising budgets, and plans to attract KOL to join, and would launch marketing and promote Voice when ready. (MEET.ONE)
On the 4 of this month, Sun Yuchen photographed Buffett’s lunch ticket with a record high of about 4 million 650 thousand. Sun Yuchen expressed his hope to enhance the understanding and friendship between top traditional investors and digital money. However, it is ironic that Buffett used to bitten bitcoin as “the square of rat medicine” and “gambling equipment”. Buffett thought bitcoin was related to many fraudulent practices, and publicly disclosed “coins” many times.
On June 6th, Sun Yuchen and Buffett received a wide attention from the media and the masses. Buffett has been skeptical about the special currency and other virtual issues before, and has repeatedly reported “endless currency”. Sun Yuchen, as a money lair, is naturally highly praised by bitcoin. What kind of sparks can these two opposing people get together for lunch? Will Buffett, the stock god, change the special currency?
In response, media daily economic news launched a vote to see netizens’ views on the lunch. There are four options, which are to see the change of the stock god, the change of the special currency, the courtesy dinner, the stock god’s opinion, and the expectation that the stock god will continue to bite bitcoin. I only care about eating melon. By the end of the press release, 2643 votes had been accumulated, of which 305 were considered to be better than the special currency, and the rest accounted for 88.5%.
What does Sun Yuchen think of it? If Sun Yuchen photographed lunch with Buffett at a high historical price, there would be no purpose for anyone. No one would believe that vanity is a goal even in a simple show. Recently, Sun Yuchen told the media the real purpose of letting Buffett accept bitcoin.
Sun Yuchen said in an interview, “I also hope that I can become the best friend of Buffett in the block chain industry. If he knows that he wants to know about the world of chain blocks, he can contact me for the first time.” And then form a long-acting block chain. Encrypted currency community 。 Buffett also said that the understanding of this industry (block chain) may only stay in bitcoin in 2009, and it is unaware of the development in the following years.
In February 25th this year, Buffett said in an interview with CNBC that bitcoin is a fantasy. Buffett believes that although the technology block chain behind bitcoin is very important, the success of this technology does not depend on the encrypted digital currency. Therefore, the industry analysis, Sun Yuchen photographed Buffett lunch, nothing more than to his own speculation behavior “renown”.
Buffett lunch can be asked to carry 7 people, Sun Yuchen has said that it will invite bitcoin stakeholders to help out, do you think Sun Yuchen can let the stock Buffett compare with the special currency change? Welcome to the message below.
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