Cryptocurrencies

‘Risk of TOTAL LOSS’ Deutsche Bank warns investors AGAINST cryptocurrency

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– ‘Risk of TOTAL LOSS’ Deutsche Bank warns investors AGAINST cryptocurrency:

DEUTSCHE BANK has warned customers against investing in cryptocurrencies as one of its global heads has said: “We do not recommend it.”

Markus Müller, global head of the chief investment office at the firm, said he does not support the new trend of cryptocurrencies.The bank itself has criticised the high volatility and potential data theft cryptocurrencies bring with it.

Mr Müller said: “It is only for investors who invest speculatively. There is a realistic risk of a total loss.”

He went on to explain that he believes the recent price increases were due to a lot of imagination, driven by the current situation on the market.

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‘Without this Bitcoin price would collapse’: Fears grow over tether ‘printing press’ as auditors part ways

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– ‘Without this bitcoin price would collapse’: Fears grow over tether ‘printing press’ as auditors part ways:

BITCOIN’S price could crash by up to 80 per cent if this scheme unravels, experts have warned. And the signs aren’t looking good.

BITCOIN could crash up to 80 per cent if it turns out the price has been artificially pumped up by controversial crytpocurrency tether, analysts have warned.

Tether, a so-called “stablecoin” which aims to maintain a value of one US dollar per tether, has been described as the “ticking time bomb” of the cryptocurrency world which could trigger the next “bloodbath” similar to the 2014 collapse of the Mt. Gox exchange.

Read more‘Without this Bitcoin price would collapse’: Fears grow over tether ‘printing press’ as auditors part ways

How To Launder $500 Million In Stolen Cryptocurrency

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– How To Launder $500 Million In Stolen Cryptocurrency:

An unknown hacker or group of hackers perpetrated the “biggest theft in crypto history” Friday morning when they stole what at the time were $500 million worth of NEM tokens – formerly one of the ten most popular digital currencies.

The hack was only the latest in a series of security breaches at digital currency exchanges that have resulted in hundreds of millions – if not billions – of dollars in customer funds’ being taken.

But how exactly do hackers continue to get away with these hacks?

Bloomberg has published a handy guide explaining how hackers are able to pull off these digital heists, and then launder the money

Read moreHow To Launder $500 Million In Stolen Cryptocurrency

$500 MILLION Crypto Heist: Japanese Exchange Coincheck Halts Trade, ‘Deeply Sorry’ For Users’ Loss

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– $500mn crypto heist: Japanese exchange Coincheck halts trade, ‘deeply sorry’ for users’ loss:

The Japanese cryptocurrency exchange Coincheck has suspended trading and withdrawals, saying it “deeply regrets” the loss of tokens worth some $500 million in what appears to be the biggest crypto heist in history.

Coincheck confirmed late Friday that the unknown hackers might have stolen some 500 million NEM tokens (worth up to ¥58 billion or around $532 million at the time of the incident), which makes it the biggest ever theft from a cryptocurrency exchange. The previous record-holder was Mt.Gox, a world leading bitcoin exchange, in February 2014 when some 850,000 bitcoins (worth $390 million at the time) were stolen from the platform, preceding its eventual demise.

Read more$500 MILLION Crypto Heist: Japanese Exchange Coincheck Halts Trade, ‘Deeply Sorry’ For Users’ Loss

‘Doomsday Clock’ Moves Again, Is Everything Lining Up For An Event?

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FYI.

– ‘Doomsday Clock’ Moves Again, Is Everything Lining Up For An Event?

H/t reader squodgy:

“Interesting dot joining exercise that opens a hornets nest regarding the coming Superbowl.
32mins

G4S is israel connected and were involved in the London Bombings.”

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“Biggest Theft In Crypto History”: Over $400 MILLION Stolen From Japanese Crypto Exchange

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– “Biggest Theft In Crypto History”: Over $400MM Stolen From Japanese Crypto Exchange:

Earlier today we reported that cryptocurrencies tumbled  overnight after one of the most popular – if unlicensed – Japanese exchanges, Coincheck, halted withdrawals of funds and cryptos amid broad confusion as to what prompted the halt. Additionally, Coincheck said it had stopped deposits into NEM coins, a hint that something was very wrong with what until last night was the 10th-largest cryptocurrency by market value, and which tumbled nearly 20% overnight, dragging the rest of the sector lower as news of the Coincheck fiasco spread.

Speculation was rife: “Coincheck is a very well-known exchange in Japan,” said Hiroyuki Komiya, Chief Executive Officer of Tokyo-based Blockchain Technology Consulting. “We’ve seen several outages at various crypto exchanges recently, so the extent and seriousness of Coincheck’s halt isn’t yet clear. We’re all very eagerly awaiting to hear more detail on what’s happening.”

We didn’t have long to wait: shortly after the halt, theories started to emerge as to what may have happened, with some speculating that the exchange may have been hacked after noticing that a massive ($110 million) transfer from Coincheck’s Ripple wallet:

And then, the worst case scenario was confirmed by Coincheck itself told financial authorities that it had lost 500 million NEM cryptocurrency coins in today’s cyberheist, which at the current exchange rate amounts to roughly $400 million, according to Nikkei.

Read more“Biggest Theft In Crypto History”: Over $400 MILLION Stolen From Japanese Crypto Exchange

Theresa May: We’re “Very Seriously” Considering Action On Bitcoin

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– Theresa May: We’re “Very Seriously” Considering Action On Bitcoin:

“Action on crypto-currencies may be needed precisely because of the way they are used, particularly by criminals…”

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Speaking of criminals…

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More Than 10% Of $3.7 Billion In ICO Profits Has Been Stolen By Hackers

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– More Than 10% Of $3.7 Billion In ICO Profits Has Been Stolen By Hackers:

Investing in ICOs – and the cryptocurrency space more broadly – has frequently been compared to investing in penny stocks, like those sold by Jordan Belfort’s Stratton Oakmont – the firm from “The Wolf of Wall Street.”

But this is a facile – though convenient – comparison. A more precise analysis of the risks associated with ICOs will find that most of more than 800 coins that have been created over the past 18 months will inevitably confirm that ICOs are far more risky than the average penny stock.

Indeed, incompetence and outright fraud aren’t just rampant in the ICO space: They’re the norm; even the largest – and purportedly most credible – ICOs – have been tainted by scandal. Offerings like Tezos, which raised more than $230 million and was backed by widely respected VCs like Tim Draper – have been hit with dozens of lawsuits from investors alleging negligence, embezzlement and fraud, according to Reuters.

By some estimates, up to 90% of these offerings will lose money for their investors.

Read moreMore Than 10% Of $3.7 Billion In ICO Profits Has Been Stolen By Hackers

“I’m So Proud Of Me”: 50 Cent Makes Millions From Album Sales In Bitcoin

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– “I’m So Proud Of Me”: 50 Cent Makes Millions From Album Sales In Bitcoin:

It’s “Get Rich or Die Tryin”, the Crypto edition.

Rapper and actor 50 Cent recently revealed that he made one of his best business decisions a few years back when he decided to accept payment in bitcoin for his new album, Animal Ambition, released in June 2014, back when a single coin was worth about $660.

50, i.e. Curtis James Jackson III, eventually amassed around 700 bitcoins from the album, totaling about $400,000 in sales during the time frame. That sum has since swelled to roughly $8 million (depending on what time of day one checks).

Read more“I’m So Proud Of Me”: 50 Cent Makes Millions From Album Sales In Bitcoin

Cryptocurrencies Leg Lower After South Korean Tax Headlines

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– Cryptocurrencies Leg Lower After South Korean Tax Headlines:

Update 1100ET: Headlines from South Korea’s Yonhap news regarding new tax rules for cryptocurrency exchanges appear to have sparked the latest leg down in cryptocurrencies… As CoinTelegraph reports,

Local news agency Yonhap reports that South Korean government has announced Monday, Jan. 22 that it will be collecting a 22 percent corporate tax and a 2.2 percent local income tax from the country’s cryptocurrency exchanges.

The tax announcement comes right after the conclusion of an unprecedented anti-money laundering probe into six major South Korean banks that showed a 36 times increase in commissions from virtual accounts linked to crypto exchanges, from 61 mln won ($57,340) in 2016 to 2.2 bln won ($2 mln) in 2017.

Yonhap reports that South Korean exchange Bithumb made 317.6 bln won ($295,368,000) last year in total, so is expected to pay about 60 mln won in taxes, according to the tax percentages announced Monday.

The announced tax percentages are in line with the South Korean tax code for all corporations that make a yearly income of over 20 bln won ($18.7 mln).

Cryptos legged lower…

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Ethereum traders joke about buying “Lambos,” but Lamborghini just reported record sales

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Related info:

– Meet Urus: Lamborghini Presents its First Ever Super SUV (0-100 Km/h in 3,6 Seconds – Video)

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– Ethereum traders joke about buying “Lambos,” but Lamborghini just reported record sales:

Lamborghini, the Italian maker of racy luxury automobiles, reported record sales today. It delivered 3,815 vehicles to customers last year, its seventh consecutive year of sales growth.

Now, correlation is not causation, but Quartz would like to point out that as Lamborghini sales have surged, so has the price of ether, the digital token used by the ethereum cryptocurrency network. Ether traders prize Lamborghinis (half-jokingly) as the ultimate status symbol in their world.

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H/t reader kevin a.

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Crypto Carnage Continues – Ripple Now Down 40% Year-To-Date

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– Crypto Carnage Continues – Ripple Now Down 40% Year-To-Date:

Overnight reports from South Korea started it; European regulator comments extended it this morning; and Shanghai “scrutiny” headlines just sparked another slam as cryptocurrencies are getting hammered today…

We detailed the anxiety over a more widespread crackdown on crypto-trading overnight, and since the US came back from its MLK-Day vacation, things have got worse.

It started with a repeat of South Korean finance ministry shutdown headlines.

Then Steven Maijoor, chairman of the European Securities and Markets Authority, said investors “should be prepared to lose all their money” in bitcoin, in a Bloomberg TV interview in Hong Kong. “It has an extremely volatile value, which undermines its use as a currency,” he said. “It’s also not broadly accepted.”

Read moreCrypto Carnage Continues – Ripple Now Down 40% Year-To-Date

Welcome To The “Crypto Castle”: This Is How Bitcoin Millionaires Spend Their Fortunes

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– Welcome To The “Crypto Castle”: This Is How Bitcoin Millionaires Spend Their Fortunes:

Lamborghinis. Diamond-encrusted jewelry fashioned into the shape of the bitcoin logo. Large homes converted into communal living spaces. These are just some of the things that the newly minted bitcoin millionaires of San Francisco spend their fortunes on – well, the comparatively small fragment that they feel comfortable spending.

In a feature story for the New York Times, longtime tech reporter Nellie Bowles chronicles the lives of some of bitcoin’s earliest and most fanatical devotees. Many of these people – men in their earlier 20s (men control more than 90% of extant bitcoin wealth, the Times notes) – are committed to furthering the “blockchain revolution” that they believe will reshape the world.

But for now, at least, many of them are hunkered down in living spaces with nicknames like “The crypto castle”, where they’re working on startups and telling anybody who will listen to invest.

Read moreWelcome To The “Crypto Castle”: This Is How Bitcoin Millionaires Spend Their Fortunes

New Survey Reveals Staggering Number Of People Are Buying BitCoin On Their Credit Cards

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– New Survey Reveals Staggering Number Of People Are Buying BitCoin On Their Credit Cards:

A few weeks ago we presented anecdotal evidence from Joseph Borg, director of the Alabama Securities Commission, suggesting that people are taking out home equity loans and cash advances on credit cards just to purchase BitCoin in the hopes of getting rich quick (see: “It’s In The Mania Phase”: Securities Regulator Warns That “Mortgages Are Being Taken Out To Buy Bitcoin”)

“We’ve seen mortgages being taken out to buy bitcoin. … People do credit cards, equity lines,” said Borg, president of the North American Securities Administrators Association, a voluntary organization devoted to investor protection. Borg is also director of the Alabama Securities Commission.

“This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be invested in.”

“You’re on this mania curve. At some point in time there’s got to be a leveling off. Cryptocurrency is here to stay. Blockchain is here to stay. Whether it is bitcoin or not, I don’t know,” Borg said in an interview with “Power Lunch.”

Now it seems that the speculation by Borg has been confirmed by a new survey conducted by LendEDU which found that, among other things, nearly 20% of people who have purchased BitCoin have done so using their credit cards.

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Warren Buffett: “I Would Buy A Five-Year Put On Every Cryptocurrency”

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– Buffett: “I Would Buy A Five-Year Put On Every Cryptocurrency”:

“[Cryptocurrencies are] something I don’t know anything about… [but] I can say with almost certainty that they will come to a bad ending…”

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