Inside Cryptocurrency - August 15th, 2019

Inside Cryptocurrency (Aug 15th, 2019)

Bitcoin falls below $10,000 / ASA upholds BitMEX complaint / Developer testifies against Wright

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Market Watch: After falling below $10,000, Bitcoin has rallied slightly back over the $10,000 mark; however, it still remains down over four percent in a 24-hour period. Ethereum has seen the biggest drop in the top five, declining more than 10 percent in the same time.

  • Bitcoin: $10,121 (⬇️ 4.32%) // $180.9 billion market cap.
  • Ethereum: $184 (⬇️ 10.63%) // $19.8 billion market cap.
  • XRP: $0.265 (⬇️ 9.29%) // $11.3 billion market cap.
  • Bitcoin Cash: $305 (⬇️ 9.64%) // $5.4 billion market cap.
  • Top 100 Winner: ICON: $0.240 (⬆️ 22.65%) // $117 million market cap.
  • Top 100 Loser: ABBC Coin:0.130 (⬇️14.47%) // $72 million market cap.

Prices are as of 08:32 a.m. EDT.

1. Bitcoin dropped to below $10,000 and there are various theories about why the number one crypto asset has undergone this downtrend. At the beginning of August, Bitcoin recorded a high of over $12,000, jumping from a low of $9,111 on July 28. At the time of publishing, the asset now stands at under $9,700. The recent rally in Bitcoin's price coincided with a drop in China's yuan, which fell seven percent against the U.S. dollar. Some, such as Bitcoin bull Mike Novogratz, tweeted that trade tensions between China and the U.S. could give the Bitcoin rally "real legs." However, Peter Schiff, an American stockbroker and Bitcoin critic, disagrees. In a recent tweet, he indicated that those who had bought Bitcoin as a safe haven asset based on the yuan were now cashing out. Meanwhile, Jacob Canfield, featured trader on CNBC, believes the price is due to Barclays bank ending its partnership with Coinbase, which has resulted in the delay in fiat withdrawals and deposits for U.K. customers. –COIN DESK

2. The U.K.'s Advertising Standards Authority (ASA) has upheld its complaint against a Bitcoin ad from crypto derivatives exchange BitMEX. In a notice published yesterday, the ASA states that the ad could be misleading to potential investors due to the use of a double spread logarithmic scale, which showed the value of Bitcoin against the U.S. dollar over the past 10 years. The agency noted that it had received four complaints, two of which accused the ad of being misleading for exaggerating the return on investment. The other two highlighted that it failed to illustrate the risk of investment. BitMEX defended itself by arguing that it doesn't buy or sell Bitcoin, but that it provides investors with access to "crypto financial derivatives markets" to aid their trading. The platform also said that the ad was part of a campaign to honor the tenth anniversary of the mining of the Bitcoin genesis block on January 3, 2009. –THE NEXT WEB

3. Throwback Thursday: the arrest of Mark Karpelès

French-born Karpelès was arrested for his alleged involvement in the disappearance of 850,000 Bitcoins at the long-defunct Mt. Gox crypto exchange. The CEO was arrested at the beginning of August 2015 by authorities in Japan.

The loss of the coins was reported in 2014, which eventually saw the company file for bankruptcy in February of that year. In March, the platform said that it had found 200,000 of the lost coins, bringing the number missing down to 650,000.

At the time of his arrest, Karpelès was suspected of gaining access to the exchange's computer system to falsify data on the outstanding balance. In 2017, the former CEO was put on trial for the embezzlement of the lost funds. He faced up to five years in prison. He was handed a prison sentence for two and a half years that was suspended for four.

In what has become a convoluted case, Karpelès reportedly appealed his conviction on data manipulation charges in March 2019. A report noted that he had decided to appeal because he didn't believe the Tokyo District Court had fully looked at the defense arguments.

4. Jonathan Warren, the developer of peer-to-peer messenger Bitmessage, has testified against the alleged creator of Bitcoin Craig Wright, stating that some documents in the David Kleiman v. Wright lawsuit were faked. According to a court document, Warren testified as part of an ongoing lawsuit against Wright, which was filed by the Kleiman estate. During his testimony, Warren, who confirmed his role in developing Bitmessage, said it was likely that Wright and Kleiman had access to the software before its release to the public. Warren's testimony points out inconsistencies in some of the documents that Wright had presented previously in court. Wright is being sued by the Kleiman estate for allegedly defrauding it out of around $5 billion worth of Bitcoin. –COINTELEGRAPH

5. Trader Peter Brandt has accused Ripple of market manipulation regarding the XRP tokens. In a series of tweets, the trader questioned whether the blockchain firm would be able to "manipulate the market" in a bid to keep the altcoin above $0.2400, a figure he noted in his tweet. XRP is currently valued at $0.263, data from CoinMarketCap shows. Many, however, called out Brandt, questioning why he had used the word "manipulate." –TWITTER

6. The U.S. Internal Revenue Service (IRS) has sent out a new batch of letters to cryptocurrency holders stating the amount of tax they own to the agency. It's not known how many have been sent out, but under notice CP2000, those who receive them have 30 days to respond or risk facing penalties. In July, the IRS started sending out 10,000 letters to crypto holders warning them of strict penalties if they failed to report their income or pay tax on their holdings. –THE BLOCK

7. Barclays is no longer in partnership with Coinbase. Last March, the British bank had joined forces with the crypto platform making it easier for U.K. customers to deposit and withdraw funds as it grew into Europe. Before signing a deal with Coinbase, Barclays wanted to make sure that the exchange had the right protocols in place to prevent money laundering. According to a survey by CryptoUK, three-quarters of crypto firms in the U.K. struggle to get banking services onshore. –REUTERS

8. Developers in Iran have created the IranRescueBit platform designed to receive aid donations in cryptocurrencies to assist flood victims. During the spring, an estimated 2 million people needed help after rising waters from heavy showers affected southern Iraq. However, according to the Iranian Red Crescent Society (IRCS), U.S. sanctions were preventing relief efforts from getting to those who needed it. The IranRescueBit platform hopes to solve the aid problem. –AL JAZEERA

9. The Internet and Mobile Association of India (IAMAI) has said that the Reserve Bank of India (RBI) has no authority to ban cryptocurrencies. Speaking in front of the Supreme Court this week, the organization argued that the country's central bank had no standing to make a decision since there is no legislative policy in place for digital currencies. In July, it was reported that an Indian governmental panel had recommended a ban on private crypto assets. The recommendation followed after a draft bill was leaked suggesting the government was considering a blanket ban. –ECONOMIC TIMES

10. Global spending on blockchain is set to rise over 80 percent to $2.7 billion this year, according to new research. The study by research company IDC also noted that spending on the technology will jump to nearly $16 billion in 2023. The banking sector will account for 30 percent, whereas discrete manufacturing and process manufacturing will take 20 percent. –THE IRISH TIMES

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).

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