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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Oodlebit does not participate in proprietary trading

 

Our Commitments

At Oodlebit we are a peoples exchange, and so we pride ourselves with being open and transparent. In order to comply with our values, we would like to make it clear that in no way shape or form do we proprietary trade. The foundation in which the exchange was created on, are still core and principal values that have continued and will be honored.

Read: Our commitments are important, read more about what we are prioritizing.

 

Investopedia defines proprietary trading as

when a firm or bank invests for its own direct market gain instead of earning commission dollars by trading on behalf of its clients. This type of trading occurs when a firm decides to profit from the market rather than from the thin-margin commissions it makes from processing trades.

Oodlebit is an exchange in which allows customers to find buyers on a liquidated platform. Oodlebit helps facilitate the trades between different cryptocurrency pairings and does not trade any money for the benefit of the company. So in short, Oodlebit will not be making any proprietary trades or trades against customers. Money avenues that are earned will be directly outlined and transparent, available for all customers to read. When trades are completed and executed they are done so after an order from a customer has been made.

 

 

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Cryptocurrency Markets are back up after some heavy weeks

Hodlers see some good days 

According to CoinmarketCap Bitcoin has been able to move past $6700 while Ethereum holds above $220. Ripple has seen some huge gains as it is up over 50% today. This is all good and well, but where is the cryptocurrency market actually headed?

*At Oodlebit we do not pressure or recommend investments in cryptocurrency, we simply offer an innovative tool to facilitate transactions/exchanges.

Tim Draper’s bold prediction

Dealstreetasia reports that Tim Draper (a cryptocurrency venture capitalist) believes the cryptocurrency market will reach $80 trillion within 15 years. Tim is quoted as saying

The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here (with bitcoin)”

 

Currently, the cryptocurrency market is evaluated at $224.8B which means that the market will need to 356X in 15 years to meet the expectations of Tim.

 

In a Bloomsburg Interview Vitalik Buterin (co-founder of Ethereum) stated

If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.

Vitalik Buterin then went on to clarify saying that in order to have growth we need some utility. Only a small fraction of the investors in cryptocurrency today are using ETH tokens on Dapps, but rather holding them as an investment.

A new governance in Ethereum?

ERC777 is a new model that could replace the standard ERC20 tokens on the Ethereum platform. This plan was created by Jordi Baylina, Jacques Dafflon, and Thomas Shababi. This new model would give tokens an easier transaction function but would allow smart contract coders a way to step into transaction disputes. This new system would allow a “hook” to block certain addresses, and allow owners to handle disputes. This proposed system isn’t new though, it was introduced back n November 2017, and is still being debated today by the community.  This is certainly a debate and topic that investors/cryptocurrency enthusiasts should not overlook.

 

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Investors want more cryptocurrency

Image result for cryptocurrency love

 

In today’s blog, we are going to take a look at a recent survey by Sharepost that may suggest that investors are more interested in cryptocurrency in 2018. Cryptocurrency has had a rough start in 2018, while most are down from their 2017 highs. However, the survey reported that

59 percent of investors and 72 percent of consumers plan to increase their holdings over the next 12 months.

This is really good news for the cryptocurrency economy as most of the users and transactions are coming from the investing section. It was no secret that the top three cryptocurrency coins/tokens that were most likely to succeed according to the survey were Bitcoin, Ethereum and Ripple. (Which are currently the top three cryptocurrencies right now in terms of market cap)

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Companies launching crypto related services/products/research

In order for cryptocurrency to be adopted real-world utility needs to exist. Right now hundreds of thousands of products/services can be purchased using some form of cryptocurrency, however, to compete on a competitive level cryptocurrency will need to be accepted by millions of different retailers. The Sharepost study suggested that

49 percent of consumers say employers are planning to roll out Blockchain in the near future.

Even during rough patches, light can be seen when companies are entering the blockchain space to try and innovative and release beneficial services/products.

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Tokenizing the Future

This data could possibly show a future in which many different companies roll out their own native cryptocurrency token and that the future could be a tokenized market.  Whether the tokens will represent some sort of equity within a particular company/business, function as a store of value, or even a medium of exchange this data has some promising notations. In a tokenized economy people will need to be able to interact with the tokens effortless in order to make the incentive models realistic. This means that exchanges will need to allow users to effortless exchange their tokens with many different trading pairs.

 

 

This sort of tokenized world is however many years away and will not be built overnight. More companies need to roll out research plans or even plans to develop blockchain related services/products. Many more years of research will be needed to give confidence to smaller companies and sole proprietorship (the largest groups of businesses in the US are sole proprietorship’s.) Companies like Wal-Mart, IBM, Oracle, and Goldman Sacs are considering or even exploring blockchain technology right now. These dominate companies have the resources to test out the industry, and once the projects are finally present other smaller companies will begin to follow suit.

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People using cryptocurrencies

Currently, around 40 million people around the world are using cryptocurrency and at the current rate within the next 7 years, this market could reach 1,000,000,000 people. This, however, cannot increase rapidly if exchanges and storing precautions are not taken. Most people who are early innovators have taken a look into cryptocurrencies, and these are the people that are willing to deal with the uncertainty in wallets and exchanges. The majority of the world will not be willing to enter the cryptocurrency market without an increase in security measures. This is why Oodlebit is dedicated to creating the most secure yet efficient trading platform. Together we can form the best cryptocurrency exchange and invite the next 40 million users to enjoy it with us.

 

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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)

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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.

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Bitcoin ETF

What is an ETF? –

Cryptoren explains that an ETF or exchange-traded fund

 

 “Is a passive investing instrument that tracks underlying benchmark indexes (such as the NASDAQ-100 Index, S&P 500, Dow Jones, and others), commodities, bonds, or portfolios of assets and replicates their performances. ETFs can be traded like a common stock on exchanges, combining the diversified holdings of a fund with the low cost and tradability of a share.”

 

A Bitcoin ETF would allow investors to get into Bitcoin without actually buying the asset themselves. This means that investors don’t actually need to hold bitcoin, go through the purchasing process, or even safely store their private keys. An ETF would also allow investors to short shares if they believe that bitcoin will go down and so it gives more avenues for investors to make money. One of the biggest reasons institutional investors are not getting into Bitcoin is because of the security aspect of it. Institutional investors with millions of dollars, don’t want to get hacked and lose their irreversible bitcoin. So instead, having a platform for these investors that will allow them to invest without actually dealing with the coin is an incredible opportunity.

 

Market Effect –

 

Yesterday on August 7th, 2018, the SEC has delayed its decision on the Bitcoin ETF until September 30th which has the market shaking. The VanEck and SolidX Bitcoin Trust is set at $200,000 to market towards institutional investors and away from individual seasonal investors. As a result of the uncertainty that bitcoin will be accepted the market has taken a huge dive with Bitcoin dropping almost 9% and Ethereum dropping over 10%. The investing strategy of buying the rumor and selling the news has certainly been played.

 

How bad is this really? –

The ETF would help bring in a lot of money from institutional investors and would help the bitcoin community and cryptocurrency community in general. The ETF would potentially bring in more interest from people when bigger investors enter the market, and people see interest from “whales”.  As a Bitcoin community and as enthusiasts this delay in a decision by the SEC shouldn’t really be a huge downfall. The core values of Bitcoin is resistance and moving away from the regulatory traps in the fiat world. Delaying the Wall Street institutional investors from buying into Bitcoin and its core beliefs shouldn’t have to be rushed. These institutional investors will bring in a lot of money, however, will also be a part of something that they have tried to destroy. As an enthusiast or current investor, the ETF delay should not be a scary sight as the play on Bitcoin in the long term won’t have a negative effect. Short term Bitcoin has taken a big hit, but if the value and utility of Bitcoin remain the same, then this downfall will clear up in time. Keeping institutional investors out and building on the technology will not be harmful to the market in the long run, timing the institutional investor’s entry will be key.

 

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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.

 

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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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