October 2018 News Report

In Short

In the last month, current cryptocurrency trends have continued with the overall market dropping from 223.2B to 203.4B according to CoinMarketCap. Bitcoin has dropped from $6619 too roughly $6323. Cryptocurrency projects and companies have continued to boom however though with many new innovative ideas/projects still coming to light which makes the future of cryptocurrency bright.

 

Bitcoins White Paper is now 10 years old

October has celebrated the 10th anniversary of the original Bitcoin whitepaper. The original paper can be read here and was written by Satoshi Nakamoto who as we know is anonymous. Bitcoin has given a chance for people to compete with centralized financial services such as banks, and allow for a global digital currency. Although Bitcoin has changed since its first paper release in 2008, it has survived and boomed to a peak of roughly $19,000 USD. Bitcoin has come a long way and will continue to grow and work with innovative applications as the market has called for change.

 

Bank of America lanches a new blockchain patent

On October 30th Bank of America announced its plans to move its private key storage forward. The patent states the reasoning is such that “A need exists for a secure means for storing private cryptography keys. The desired storage means should reduce the risk of misappropriation of keys due to the keys being stored internally within a computing node that is frequently or, in some instances, continuously accessible via a public communication network, such as the Internet.” This is very important for blockchain technology as Bank of America, although a centralized company shows signs of real world use and application. Security has always been a concern in the blockchain/cryptocurrency market and so BoA could actually make some good advancements if they are able to complete what they aim to. Oodlebit which is launching in early 2019, is also taking the initiative of prioritizing security.

Coinbase Cuts Employees

According to Yahoo Finance Coinbase has recently cut an undisclosed amount of workers in the customer support, compliance, and fraud departments. Cryptocurrency exchanges should pride themselves on customer support which has been an issue with past exchanges like Poloniex. Fraud detection and compliance is also a big challenge for cryptocurrency exchanges as regulation has recently been a huge concern. So by cutting some important roles, Coinbase is going to face many challenges moving forward. At Oodlebit we want to put the customer first, and so we offer state of the art customer service that is dedicated to supporting any needs.

Possibly a new Hardware wallet

 

On October 23rd, Sony announced plans to create a new hardware wallet that could have many new use cases. The smart card technology would be able to communicate with Bitcoin and allow for safer transactions when dealing with it. This isn’t the first time Sony has worked in the blockchain sector, Sony has launched two different patents. (1 and 2 ) It is not guaranteed that Sony would launch a cryptocurrency product since it has not publicly announced, but if Sony does decide to launch the product it would greatly increase the utilization of cryptocurrency.

September 2018 News Reports

In short

September has been a very active month for cryptocurrencies, as prices have seemed to be soaring rapidly in both directions. Regulation seems to have been moving at a slightly slower pace which is typical, and some big fortune 500 companies have announced plans to develop blockchain experiments.

 

Austria and Ethereum

On September 25th Kleinezeitung announced that the Austrian government will be using the Ethereum blockchain to facilitate the opening of over $1,000,000,000 worth of purchasable government bonds. The Oesterreichische Kontrollbank or OeKB bank plans on opening this transaction. This news is very important because it shows the interest in blockchain technology as financial instruments being used by top global banks. In order to grow the advancement of cryptocurrency, institutions need to be adopting the technology and so this is certainly a good step in the right direction.

Wall street Journal Study

 

On September 28th the Wall street Journal conducted a study which found that over $88,000,000 of illegal funds have been exchanged through cryptocurrency exchanges. The Wall Street Journal conducted their study by looking at over two thousand “blacklisted” addresses and then following the links between the transactions. There are a number of different problems that could arise from this experiment though, one being the purchase of legal goods. If a hacker has stolen 1 BTC and then sends it to a vendor which in return sends the coin to an exchange after sending the product/service to the hacker. The money is not being funneled or hidden using an exchange, but rather being traded legally at that point. So the extent to which the coins are used is not clearly defined. Using exchanges to facilitate illegal transactions has been proven to be minimal, with regulatory laws such as the KYC/AML. At oodlebit we take the regulatory laws very seriously and you can check out our policies and procedures on our website.

 

 

Regulatory Clarity needed

CNBC reported that members of the United States Congress are asking for more clarity around cryptocurrency regulatory practices/rules. These regulatory clarifications are not simply aimed at Bitcoin, but all cryptocurrency as Congress has identified the practice of ICO’s and other forms of cryptocurrency coins/tokens. Different government entities classify bitcoin and other cryptocurrencies differently, like the IRS, CTF, CFTC and SEC all have different ideas. This puts businesses and customers wondering what will actually happen to cryptocurrencies from a regulatory state. It is good that some sort of regulatory urgency coming from Congress at trying to understand the exact classification of cryptocurrency since it is damaging everyone who is involved.

 

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Introducing our Commitments

Our priority at Oodlebit is to create an open global market for crypto assets. We know that in order to do this, we are going to have to work with many different customer needs. This is why we have been busy creating advanced charting tools and the latest financial API’s to ensure you have the best experience.

 

Today, we will discuss Oodlebit’s commitment to community members all across the world.

 

Priority One: Create a fair and working environment to trade

 

Our Steps:

  • Launching a Fast trading platform with multiple liquid trading pairs such as Bitcoin, Litecoin, and EOS among others
  • Fair Trading Fees with OODL coin benefits
  • Hiring talented and motivated C# developers

Priority Two: Protecting customers with advanced security protocols, and good infrastructure practices.

Our Steps:

  • Offering multiple personal security measures such as Master Pins, and 2FA authentication
  • Monitoring suspicious activity using powerful software development applications, such as unusual trading patterns, unusual withdraws, and other malicious activities.
  • Saving automatic backups of our data, and saving it in multiple locations for safe keeping.

 

Priority Three: Communicating Clear and Precious Rules

Our Steps:

  • Publishing educational content surrounding our fee structures
  • Staying consistent on social media and updating the community with new integrations or problems
  • Recording all problems that occur with the trading application or uptime of any application
  • Publicly announcing rules regarding prohibited trading practices
  • Promote an active list of Company Policies and Procedures(Including Insider Trading Policies)

Get in Touch

In an ongoing effort to expand and grow our exchange, we are giving away 50 OODL coins with 60 days of free trading to the first 30,000 users. Visit https://www.oodlebit.com to learn more about our amazing offers.

Follow our progress and updates on Twitter, Facebook and Telegram.

 

A cryptocurrency downtrend might not be bad

According to CoinMarketCap the cryptocurrency market lost a collective $11,420,496,785. This might seem devastating at $11B is a lot of money even in a market like cryptocurrency. However, there are many positives that are coming out of the cryptocurrency market.

 

One thing to take a look at is the recent ICO funding trend which is currently mooning, new projects are still entering the market every single day. This shows that creating blockchain startups is still profitable and that dapps or decentralized applications are still of value. With the creation of ICO’s and decentralized applications, news projects have been able to appear and it is apparent that people are still interested in investing in startups.

Often times people will look at cryptocurrencies and shame it based on its volatility. Many known traditional investors warn others to not get involved into cryptocurrency because of this. Cryptocurrency is a very speculative market, however, when someone doesn’t understand something they oftentimes pin it to something they do know. So outside investors might look at cryptocurrency as a stock, and many will say cryptocurrency is in a bubble or over evaluated. On July 26th, 2018 Facebook’s stock saw a drop from $217 to $174. This is important because it shows that even traditional investments in “safe” companies can have violent swings. Facebook does have their stock tied to the company’s earnings however it yields a high P/E ratio. This makes an investment in Facebook even more speculative because the stock’s value is coming from innovations or partnerships that have yet to exist. Many features of the stock market are criticized that the cryptocurrency market potentially fixes like the cost of premium stocks, and pre IPO investments.

 

Cryptocurrency like other innovative technologies and assets need time to adopt. In order for cryptocurrency to become adopted, more projects need to enter the market and build platforms that can be utilized with the benefits of blockchain technology. This means more companies are going to need to accept payment assets like Bitcoin and more decentralized platforms will need to run on assets like Ethereum in order to make the cryptocurrency space scale. This comes at a number of different avenues including building on the actual blockchain themselves and developing more efficient ways to scale and perform.

 

Cryptocurrency is slowly developing and working towards mass adoption, but can’t get there without good development. When prices jump the gun without the advancement of the underlying technology downtrends occur. In times of downtrends, more coins can be purchased at lower prices which will, in turn, make a profit if the market for that asset recovers. If cryptocurrency is to be the future then the prices day to day won’t matter to those who are investing in the technology and are supporting its value long term.

 

Our Commitment

 

A huge barrier to entry is the exchange market and the usability of transferring ownership between people whether it be buying or selling orders. If cryptocurrency is going to be adopted it needs to start with the usability, and people need to be able to exchange seamlessly without faulty problems. Bad technology and usability will drive more people away from getting into the market, and poor security and mismanagement of user funds will cause more people to leave the market. At Oodlebit we strive to push the innovation and drive for cryptocurrency because it starts as a passion for us. We believe in cryptocurrency and want a safe and trusted platform to help facilitate trades.

 

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Making a good cryptocurrency exchange

A cryptocurrency exchange is a medium that allows users to facilitate buy and sell orders. The exchange site can facilitate these trades using fiat pairings and use liquid cryptocurrency assets like Bitcoin and Ethereum. These transactions come at a cost and normally are set in a progressive fee bracket which allows the exchange to make a profit and run its service.

 

A recent article on Coinsulta explains what traits to look for when searching for an exchange. Currently, hundreds of different exchanges exist that are producing millions of dollars in transactions a month. Cryptocurrency has been on a steady incline ever since Bitcoin was mined in 2009. In a market that is growing at a fast pace like cryptocurrency one might think the technology and exchanges that are facilitating these trades are advancing and growing as well. In our last blog, we explained how the exchange market hasn’t really changed much and hacks and exploits are getting more and more frequent.

 

What to Look For:

 

Ease of Usage

The first important thing to look for in an exchange is the ease of usage, some exchanges are hard to operate and sometimes the user might end up sending cryptocurrency to the wrong addresses because of the confusing UI. If cryptocurrency adoption is going to occur everyone needs to be able to access these exchange platforms without hours of learning. Which is why at Oodlebit we have taken the initiative to make the exchange platform easy for anyone to understand and start trading within minutes, with tools available for more advanced users to keep everyone active.

 

Security of Funds

 

As we have seen in countless exchanges in the past that were in control of millions, security hasn’t always been a top priority. This gives a bad taste to others who are on the fence about getting into cryptocurrency and is hurting the users that are involved in cryptocurrency directly. Most of the cryptocurrency hacks/exploits could have been avoided and the carelessness of private keys was astounding. Oodlebit has a strict policy on security and is transparent with our users with our policies and handling procedures.  Two Factor authentication will be available for everyone accessing the platform to ensure an extra layer of security. Our advanced system will monitor unusual activity, including log in location, trading patterns, and other activities. Cold storage’s are often used lightly on exchanges, and store a small percentage of the funds. However, at Oodlebit a majority of user funds will be safely secured in cold storage wallets.

Performance

When dealing with user funds, exchanges should act seamlessly and run smoothly to give the users the best experience possible. Unfortunately, that is not always the case with the top exchanges. Having near perfect up time is something that Oodlebit strives for and maintain innovating trading software/tools is something that we pride ourselves over. In order to give a good performance and first experience, we are giving away 50 OODL coins with 60 days of free trading to the first 30,000 users. Our customers and their loyalty are priceless and to show our continued support to the community we are always running promotions/events to engage the community that we share.

 

Oodlebit believes in low fee trading in order to boost performance, and when trading personal funds the users should have fair fees. This is why we are committed to competitively pricing our fees to other exchanges.

 

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History of cryptocurrency exchanges

Cryptocurrency exchanges have been a very important aspect to the community and economy. Exchanges have helped millions of people transact with their favorite assets whether it was a buying or selling facilitation. According to CoinMarketCap the total market value is pushing $300,000,000,000. In an enormous market like this, one might think simple standards like high liquidity, internal audits, fair fees, and good customer support is an industry practice. However, it all started in 2014 with the rising prices of Bitcoin, when greed and thoughtlessness took place.

 

Timeline

February 2014, exchange giant Mt. Gox files for bankruptcy stating that 850,000 bitcoins were stolen and are unable to pay back creditors. Fraud and severe mismanagement of funds belonging to the users of the platform clouded over Mt. Gox. To this day people are still waiting to receive their liquidation share from the disaster.

 

Fast forwarding to January 2015 the exchange Bitstamp which was a direct competitor of Mt. Gox, was hacked resulting in a loss of over $5,000,000. The amount stolen was far less than Mt. Gox however, the way in which the coins were stolen was outrageous. Bitstamp executives were phished with concert tickets and other fake email requests.

 

August 2016 Bitfinex made history with the second largest cryptocurrency exchange hack with over $70,000,000 stolen. There are many critics with this hack since accounts that were not affected directly got 36% of their funds automatically exchanged for BFX tokens. (BFX tokens were held in place for Bitfinex to payback customers ) The unique hack was able to occur with the help of the mismanagement in their multisignature wallet which was blindly signed when API keys were hacked to send off 120,000 bitcoins.

 

July 2017 exchange site BTC-E was fined $100,000,000 while the owner Alexander Vinnik was arrested on the accusation of laundering more than $4,000,000,000. Some reports also suggested that 95% of ransomware attacks were sifting coins through BTC-E. Alexander Vinnik was named in connection to the Mt. Gox hack which resulted in a net loss of $2.2B. Users on the platform were given a choice after a few weeks to either take a native token ( similar to that of Bitfinex) or take a large percentage loss of their tokens.

 

Most of these hacks and exploits occurred because private keys were misplaced and carelessly managed. Exchanges should be a safe place for users to transact, and if cryptocurrency is to go mainstream this is essential. Cryptocurrency technology has allowed companies to avoid a lot of traditional financial barriers, however traditional business strategies in security and internal control should not go ignored.

 

A New Standard Has Been Created

 

 

oodlebit crypto exchange

Which is why in 2018 Oodlebit, the next generation exchange that aims to take care of funds and keep security a priority was created. In a market where private keys have been misplaced, and executives have fallen for email phishing attempts, we are confident to take customer experiences to the next level. Customers will be given top support as deserved since a community without users isn’t one at all.

Get In Touch

In an ongoing effort to expand and grow our exchange we are giving away 50 OODL coins with 60 days of free trading to the first 30,000 users. Visit https://www.oodlebit.com to learn more about our amazing offers.