Altcoin Season, Crypto Movie, Ethereum not a Security | Hodler’s Digest


Hey there, I’m Molly Jane and this is your
weekly Hodler’s Digest. If you’re watching this for the first time
– click the subscribe button to get weekly roundups, market updates, funny videos to
lift your mood, documentaries about some of the most crypto-friendly places in the world,
and lots more. But what’s new in the
crypto space this week? There is the usual FUD, it seems that the
CBOE has decided not to list Bitcoin futures this March, citing a need to assess its approach
to digital assets in a blog post that didn’t really say anything at all. On the other hand, for once some of the crypto
scammers that people love to make fun of online actually got some real life justice, as the
one of the two Bulgarian siblings responsible for the multi-million dollar OneCoin pyramid
scheme were swooped up and arrested by Los Angeles police this week. In a quick recap of other news that didn’t
make the cut for our roundup, it seems like Tether isn’t actually backed 1:1 to the
US dollar (and I doubt many people are surprised), the QuadrigaCX debacle has continued with more court
appearances and requests for reimbursement (but no one seems to care, based on how many
views our articles about that actually get), and Monero may no longer be the cryptojacker’s
coin of choice after their ASIC-resistant mining update. For all other news, some interviews and some
pretty fast graphics, stay tuned and remember, I’m Molly Jane, and stick around for this
week’s Hodler’s Digest. Let’s take a look at the markets. Up to 88% of crypto trading volume registered
in February on exchanges may be totally fake. That is the main outcome of a recent report
published by Crypto Integrity, a research organization focused on detecting fraud and
fostering integrity in the cryptocurrency market. According to the report, maliciously inflated
trading volumes were detected on a number of well-known crypto exchanges such as OKEx,
CoinTiger, HuobiGlobal and HitBTC. The analysis took into account 11 among the
most prominent crypto exchanges, which counted for 33% of total adjusted
volume in February 2019. As pointed out by Crypto Integrity, the exchanges
were selected because of their suspicious trading activity, thus they are not representative
of the whole market. However, the study still aims at giving a
sense of the scale of “wash trading”, the practice of selling and buying the same
asset to create fake demand. As the business model of crypto exchanges
highly depends on trading volumes, many of them have been engaging in wash trading to
survive the bear market, it seems. As some analysts noted on social media, trading
volumes have been suspiciously increasing since October, despite the failing, or at
best stagnating Bitcoin prices. If the report proves to be accurate, it could
mean a major blow to analysts who predicted the next crypto rally to happen on the back
of these high volumes. We talked to the authors of the report, who
agreed to comment on the findings under condition of anonymity. You may look at the chart of some liquid samples
of the exchange and compare the volume during some period of time. One minute, one hour or one day. If the volume is approximately the same regardless
of the drops or increases in price of the underlying asset, it does look suspicious
and it makes us investigate further into this exchange. So we compare the price of a trade with the
best ask or best bid price at the moment when the trade happened. If a trade is outside or inside the bid-ask
spread, we mark it as an in-spread or out of spread trade,
for us this is a suspicious trade. I hardly can imagine a situation where the
trade can occur within the spread without actually limit order and be within the order
book before this trade happened. The only way I can justify it, is that the
exchange has some OTC desk and they report OTC volume in their on-the-counter volume. But they should disclose this information
and exchanges that we’ve covered in our research have not disclosed it. A simple idea that came to our mind is that
they want to increase their volume in order to increase the attractiveness of an exchange
and also be high in the rankings and to have higher value in the eyes of the major
stakeholders of coins. This crypto winter seems to be
slowly turning into alt season. The term indicates when the price of altcoins,
usually correlated to Bitcoin’s price, display independent behavior. Which is exactly what’s been happening in
recent weeks, when a number of altcoins rallied, some of them with double digits gains, despite
Bitcoin’s more or less stable trend. In particular, analysts draw attention to
Litecoin, Binance Coin, Tron and Maker, which have been trading above their 200 Day moving
average, a sign commonly interpreted as indicating healthy markets. The trend is also visible in terms
of year-to-date gains. For instance, while the main cryptocurrency
is up a modest 4% since the start of the year, Litecoin registered over 80% year-to-date
gains while Binance Coin and Holochain went up by 140%. A growing interest towards altcoins can be
noted by looking at Google Trends’ charts, where altcoin-related searches have never
been so frequent since the last crypto Bull Run. The equivalent graph for Bitcoin shows a far
less enthusiastic trend. As eToro’s senior market analyst Mati Greenspan
told Bloomberg, despite Bitcoin having recovered around 20% of its price in the last three
months, “investors are seeing more potential in some of the smaller tokens.” Popular trader Nik Patel, author of
“An Altcoin Trader’s Handbook”, expects altcoin prices to continue rallying until Bitcoin’s
price breaks above its current range. At that point, he said, altcoins will be sold
off to fuel the larger Bitcoin move towards $6K. The U.S. Security and Exchange Commission
does not consider Ethereum and similar cryptocurrencies to be securities. At least, that was how many interpreted a
recent statement by SEC chairman Jay Clayton. Last year, SEC director of corporation finance
William Hinman had said that Ethereum did not exhibit the properties of a security,
as he could not identify any central group managing the cryptocurrency. Replying to congressman Ted Budd, who asked
him whether he agreed with the statement, Clayton said: “I agree with Director Hinman’s explanation
of how a digital asset transaction may no longer represent an investment contract if,
for example, purchasers would no longer reasonably expect a person or group to carry out the
essential managerial or entrepreneurial efforts”. He also said that the designation of a cryptocurrency
under U.S. law is not immutable, and can change over time depending on the way
it is offered and sold. Clayton did not mention Ethereum directly
and his circumvoluted statement caused a heated debate to spark on social media. While Morgan Creek’s Anthony Pompliano interpreted
it as a clearcut statement defining Ethereum as a non-security, Bitcoin maximalist Tone
Vays is convinced that this cannot be considered the SEC’s official position on the issue. The U.S. SEC seeming to define Ethereum as
non-security is seen as a bullish sign by many in the industry, as it would mean that
investors don’t need to be accredited in order to purchase the underlying asset. The SEC possible clarification is also a step
forward towards forming a clear cryptocurrency regulatory environment in the United States. The brother and sister behind the now infamous
OneCoin have been charged with wire fraud, securities fraud, and money laundering. OneCoin made over $3.7 billion in sales and
made about $2.5 billion in profits, rivaling Bitconnect for the title of biggest ever crypto
Ponzi scheme. Konstantin Ignatov, the brother, was arrested
at the Los Angeles International Airport according to New York prosecutors. His sister, who hasn’t been seen in over
a year, is still at large. The scheme described by prosecutors as “smoke
and mirrors more than zeroes and ones” was founded in 2014 in Bulgaria and raised around
$4 billion from investors all over the world. As recently as this February, Konstantin was apparently
in Las Vegas berating investors for even thinking of cashing out, accusing them
of not understanding the project. Investors were lied to by the fraudster siblings
in order to inflate the value of a single OneCoin from $0.56 to about $33.65. The siblings apparently described their exit
strategy in an email exchange, writing: “take the money and run and
blame someone else for this.” Konstantin, although he’s the one arrested,
is only charged with one count of wire fraud; his sister, on the other hand, has been charged
with wire fraud, conspiracy to commit wire fraud, securities fraud, conspiracy to commit
securities fraud and conspiracy to commit money laundering. All those charges combined amount to a maximum
prison sentence of 105 years. Mark Scott, a third suspect, was arrested
back in September and faces a potential 20 years behind bars for laundering over $400
million as part of the scheme in the Cayman Islands and the Republic of Ireland. Last year, when I heard there was a film coming
out called “Crypto” starring Kurt Russell and an ex-Gilmore Girl, I was excited; finally,
I thought to myself, a film that explores the incredible potential of crypto and blockchain,
from a filmmaker who knows what he is talking about. Sadly, this appears to not
exactly be the case. “Crypto” is a B-list thriller set in the
financial world, and has very little to do with cryptocurrency at all. It tells the story of a guy who works on Wall
Street at first, but ends up as an AML officer that discovers his company is involved in
money laundering for, you guessed it, the Russian mafia. They combine a hacky trope from the film world
with a hacky trope from the crypto world; the villains are always Russians and crypto
is only used for money laundering. There is, however, a subtle hint that the
filmmaker may be a hodler after all. In this screenshot, you can see only Ethereum,
Waves, Stellar, NEO – the leading crypto is not on screen, so perhaps he only holds Bitcoin. If you guys want to attend one of the top
crypto events out there, we have prepared a special offer with our partner Blockshow,
who are organizing the top crypto conference this November in Singapore. Use the promocode HODLERS88 and get the ticket
for only $88 instead of $488. Hurry up while this offer is active. The link is in the description below. In the comments below give us your elevator
pitch for a crypto movie! Include basic plot, actors and director. And as always remember
to like, subscribe and hodl.

21 thoughts on “Altcoin Season, Crypto Movie, Ethereum not a Security | Hodler’s Digest”

  1. CBOE dropping Bitcoin futures is not FUD! It is good news! Bitcoin futures should be banned because that is how Wall St. rigs all markets!

  2. Of course all the volume on exchanges are fake! Very few of those trades are recorded on the blockchain! Only if you remove the coins you bought on that exchange will be recorded on the blockchain! If you keep your coins on the exchange, all you are buying is a claim check on whatever coin you are buying. That is the same way legacy stock purchases are. You never get the stock…just a claim check on how ever many shares you bought. If you demand delivery of your certificates, which few if any do, you do not own it unless you hold it in your hand or if it is on your hardware wallet.

  3. You know how I know the bear market is over? I mentioned Bitcoin to a girl and she didn't immediately lose interest :-D!

  4. My movie is about a boy and his dream to be a space explorer set in the year 2034 in a utopian 4D society where crypto is well intergrated part of society with holograms and teleporters and robot pets. He has worked real hard in the cargo Bay growing up. He would see the ships comming to and from space. He helped him load the ships with trade goods for the solar system and extra terestrials. He saved his crypto from that and odd jobs like helping a lady with her electric food 3D printer machine and his relatives with reiki healing as well. His goal and always has been from since he could remember was to pilot one of those cargo ships. And by golly gee he did just that. His name was Benjamin Cxyrto. ๐Ÿ˜‚๐Ÿ“Š๐ŸŒ•

  5. Can't believe you're referring to Tone Vays as if he is an authority in anything. He is an ordinary btc trader who got in early and accumulated cheaply. His views on security definition is as valuable as his views on astrophysics.

  6. A movie trama: A guy in his mid-20 works in McDonald. He live in a middle-low family and live life in resignation of his economic condition. Colleges are too expensive and his parents should strive to arrive at the end of the month. Is like for casuality that one of his high school friends speak about bitcoin and and this new market. Bitcoin has broken the price resistance of 1000$, big psychological resistance and speculation about blockchain start running. Our protagonist (we can call him John) doesn't understand anything of informatic, and he understand only the basic concept of blockchain. Entering out of curiosity, greed and hope he will quickly discover all the aspect of crypto market and community, including scammers, pump and dump, volatility and fomo, and it will suck him in out of enthusiasm and fear. In really little time it will have more crypto groups in his discord/telegram account than friend in his phone. He will read all about technical analysis, becoming near to an expert, however continuing to struggling to control his emotional imbalances, do to the market volatility. The film will explore the crypto world, or at list the bull run from 8k till 19k. It should be done with a tone of humor, without forgotting also his informativ goal. It focus on the blockchain per-se as invantion and possible innovation, but also in intreging fact such as Satoshi Nakamoto anonimity, and what is like to be a common man trader in this market. It should explore sentiment as Fomo and panic, not only as market sentiments but also observe as the intimate condition of the protagonist, to look how market moves influence also individual feelings and perception. The film will end with the 19-20k crash with a question mark on the btc(blockchain) issue. Considering crypto as a part of whole internet/technological/digital revolution we are living in and that is changing our society. To give a model of the protagonist should be more or less the film about the crypto pink-man, icon of the crypto community: https://www.youtube.com/watch?v=DMonlRsJ5hY.
    possible director: me ๐Ÿ˜‰

  7. Honestly, I dont care who directs the movie or what actors are involve, so as long as the movie is only about crypto and how blockchain is used for creating innovating products. Sounds boring, but compare it with something like the Silicon valley series where they end up doing a freaking PiperCoin. You know, it may be soemthing comedial or thrilling.

  8. Altcoins are running like crazy,I made some good profit on Binance by trading.
    Almost doubled my portfolio.
    Thanks to @satosicollector telegram channel

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