Cryptocurrency News: Roundup #1
Welcome to the first episode of ‘This Week in Cryptocurrency’, episode #1, a roundup of the news, comings and goings of the cryptocurrency world.
Well, this was a week of real frenzy in the cryptocurrency world. The roller-coaster ride of all major altcoins including Bitcoins, Ethereum and the rest of the pack continued throughout the week, leaving much of the interested parties scratching their heads or hitting their foreheads on the wall.
Crypto Losses and Gains
The week started with the crypto currencies taking a huge dive in terms of worth. Until the wee hours of Monday, the worth of all cryptocurrencies combined declined more than $10 billion in less than 24 hours previously. Overall the market capitalization had declined more than 50% after all-time high figures of June this year. From a record $115 billion worth on June, we were looking at $61 billion worth at the start of this week. It improved to around $93 billion as the week is nearing its end and thus the see-saw ride has continued.
Due to this mini-collapse and subsequent rise, we know what happens. The altcoins doubters, haters and pro-paper currency advocates start taking swipes at the crypto world, calling it a fraud and predicting the market would collapse. Well, guess what? The market didn’t collapse and rather recovered strongly in the end. We are all quite used to these tactics and the currency traders don’t scare off easily.
The truth was that the market was overvalued for some time and needed to correct itself. It did correct itself and now looks towards settling, but due to the over expectations of the investing crowd, it might shoot up again. This process will definitely continue on and might take some time before the coins start stabilizing.You don’t have to worry about it. Cryptocurrencies are the future and there should be no doubt in my mind regarding it.
How Bitcoin fared in the market
Although cryptocurrencies are generally regarded as highly volatile when it comes to their valuation and trading circles, even then the early shocks of the week were substantial. Bitcoin dived lower than $2,000 mark for the first time in many months. It hit its lowest value since May in the process reaching the unreal figure of $1866 on Monday. But, immediately as this lower benchmark hit, the currencies revived the very next day. By tuesday, the market was value was back at $80 billion and bitcoins witnessed another crazy surge with the $2,000 milestone easily crossed within a matter of hours.
The steady climb continued throughout the week, eventually resulting in the $94 billion current market capitalization of all the currencies. Ofcourse some performed better than most but Bitcoins, Ether and Litecoins, all had their worth resurging as the week progressed. All in all, a very interesting week for the trading community and us enthusiasts.
Charles Hoskinson with the bomb, well kinda!
On the other hand in the crypto world, the Ethereum founder Charles Hoskinson was widely misquoted around the blogosphere with his words “Coin Market is a time-bomb”. He made this statement in an interview and as expected, major news outlets were quick to misquote him and draw conclusions of their own.
What Charles Hoskinson was talking about was Initial Coin Offerings for Ethereum only. He was talking about how companies like Bancor and others are offering ICOs one-time just to make money out of it. People are blinded by the urge to make fast and easy money and the ICOs often receive overwhelming response. He believes that same tasks can be achieved using existing blockchains of currencies and you don’t need ICOs every single time. He said this because altcoin companies raised more than $1.3 billion dollars this year alone. It is more than six times from last year even though the market cap or activity hasn’t increased by that much. It is simply a case of over-tokenization for him. But, the sensational media had to make headlines and that’s what they did here.
Crypto Wallet Hacked
In other news, a crypto wallet started by an Ethereum founder was found to have major breaches in the system. Parity, co-founded by Gavin Wood the Ethereum co-founder posted an alert on their blog warning of a vulnerability of its 1.5 version or later in its crypto wallet system. It goes as far as to advising the clients to immediately move their funds to a secure address.
Users were scrambling to do that, but even then, the wallet software has had 150,000 Ether (around $34 million) reported as stolen. Parity had claimed of being the most secure way of interacting with the Ethereum Network. The irony!
Elsewhere, the crypto world is eagerly waiting for the CoinDash, a new social crypto network that has promised to do things much more differently. It consists of three layers and is designed for the Ethereum platform.
Layer 1 consists of Portfolio management tools, Layer 2 consists of social trading and layer 3 is the marketplace. Some users were however, not happy with the way layer 3 was described. It was not clear in their opinion and since it is the cornerstone of any crypto social system, you should tread carefully here.
There is an ICO for the project because it needs funds. It is currently going on right now and was started on 17th July with a goal to raise $12 million.The coins will be sold with the name CoinDashTokens (CDT) and can be used for a variety of useful purposes around the platform. Experienced traders can also earn CDT by sharing their knowledge, expertise and sales.
But, in a new twist, the website of CoinDashtokens was hacked and more than $7 million worth of ETH was sent to a malicious address. Now the company has hired internet forensic investigators to look into the matter. The affected customers are reportedly going to be compensated in CDT. So who did it? Some jealous competitor maybe? It still doesn’t eclipse the $50 million heist of the DAO project from last year!