Recap of recent cryptocurrency events

Cryptocurrency is a new and innovative field that is changing every day, something new can be something outdated tomorrow. In this blog, we will be taking a look at some recent cryptocurrency events.

 

Regulation in Crypto

 

Bill Huizenga a Congressman in the United States asks for more cryptocurrency regulation and more rules regarding ICO’s. The main issue Bill pressed was the lack of transparency that ICO’s have with their investors and potential investors. Unlike traditional investments in the stock market, cryptocurrencies bring a grey area of regulation where some aspects of insider trading and other activities that would otherwise be illegal are present. Currently, in the United States, there are mixed feelings from government agencies as to what cryptocurrencies should be categorized as such that the IRS, SEC, and CFTC all have different classifications. Regulation often times can hurt innovation, and pinning cryptocurrency to the same rules as traditional markets can be harmful so finding a middle ground or new standards would be more beneficial.

Long Blockchain Corp. which was a beverage company has been subpoenaed by the SEC. The Securities exchange commission has taken a stance on companies that change their business plan to enter the blockchain space. Companies like RIOT blockchain have also been subpoenaed after their stock pumped after the name and business change into blockchain. Since the booming of ICO’s and the peaked interest of blockchain technology and cryptocurrency in general, companies have found that announcing their interest in blockchain has had a tremendous effect on their business and in some cases stock price. Restaurants like KFC have done promotional campaigns around cryptocurrency to spark conversation and deploy marketing antics.

 

Celebrities in Crypto

Bill Clinton who is a former United States president will be speaking at a Ripple conference. Ripple has used celebrities at conferences before as they brought in rapper Snoop Dogg for a performance. The conference will be held in October according to the blog post and notes that Bill Clinton has helped companies get past the “digital divide”. Ripple is heavily criticized as their company owns a large stake in the cryptocurrency XRP, and some argue that the interaction between the company and the cryptocurrency itself is very limited. Celebrities and public figures do have a positive impact on the cryptocurrency community, as they can reach a large audience and potentially introduce them to cryptocurrency.

Kim Kardashian West who is a popular TV celebrity was invited to a Poker Charity Event where she was given a Bitcoin. Kim posted an Instagram story of her poker chips with a physical representation of a bitcoin on the table with the caption “we moved onto bitcoin”. Kim has over 100,000,000 followers on Instagram which reaches a huge audience and is good for the overall cryptocurrency community. Many people that have never heard of bitcoin will certainly be enticed to look into it after seeing the support of Kim Kardashian West.

 

Non cryptocurrency celebrities are not the only people that are admired and have a pull. Celebrities like Vitalik Buterin although in the cryptocurrency community, have a large pull. When Vitalik tweeted about liking the staking economics of the project Omisego, the coin pumped over 10% within hours. Projects or coins that are then endorsed or talked about by Vitalik are then greatly looked at or purchased without much research.

 

Get in Touch

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.

 

Get in Touch

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

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.

 

Get in Touch

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

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.