Ethereum Plummets 10% Overnight: Possible Causes Behind the Dump

Ethereum (ETH) has been one of the many victims of the recent widespread sell-off in the crypto markets, which was sparked when Bitcoin faced a …

Ethereum (ETH) has been one of the many victims of the recent widespread sell-off in the crypto markets, which was sparked when Bitcoin faced a sharp drop that sent it to lows of roughly $9,500.

This latest drop has sent Ethereum reeling down 10% to a major support level at $185, and this latest drop may have been perpetuated by a Chinese Ponzi scheme that scammed a total of 800,000 ETH from unsuspecting investors.

Ethereum Plummets to $185 as Selling Pressure Increases

At the time of writing, Ethereum is trading down just under 10% at its current price of $185, which marks a significant drop from its 24-hour highs of over $200.

ETH’s recent leg down came about as the entire crypto market faced a massive sell-off, which caused many altcoins to dump 10% or more.

This drop came about just prior to Bitcoin facing a period of capitulation that led it to lows of $9,500. BTC has since recovered from this drop and is now trading above the key psychological price level of $10,000.

In spite of Bitcoin’s recovery, most altcoins are still trading at or just above their 24-hour lows, with Ethereum posting a minor recovery from its daily lows of just over $176.

Additionally, Ethereum’s recent sell-off and failure to recover has caused it to shed even more off of its market dominance, which is currently at 7.55%, down from its monthly highs of nearly 9%.

Is a Chinese Ponzi Scheme Behind the Recent ETH Dump?

Recently, news broke that a Chinese Ponzi scheme had swindled investors out of a significant amount of Bitcoin and Ethereum, which has sparked widespread concerns that the perpetrators will at some point dump the 800,000 ETH they currently have.

Dovey Wan, a founding partner at Primitive Crypto, spoke about this scam and their wallet holdings in a recent tweet, noting that they currently have 70,000 Bitcoin and 800,000 Ethereum, which may ultimately be dumped onto the fragile markets.

“JUST IN: as per sir @loomdart‘s request, this thread is abt the on-going sells off made by PLUS Token, the biggest Chinese PONZI which scammed ~70K $BTC + ~ 800K $ETH. I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells,” she noted.

JUST IN

as per sir @loomdart ‘s request, this thread is abt the on-going sells off made by PLUS Token, the biggest Chinese PONZI which scammed ~70K $BTC + ~ 800K $ETH

I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells pic.twitter.com/uIjgrzwHET

— Dovey Wan 🗝 🦖 (@DoveyWan) August 14, 2019

Although it remains unclear as to whether or not this massive amount of Ethereum existing in the hands of known scammers contributed to yesterday’s drop, it is highly likely that the cryptocurrency could soon face a massive panic sell-off that is perpetuated by any movement in the scammer’s wallets.

Featured image from Shutterstock.

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Bitcoin Stabilizes Near $10000 After Falling 20% In A Week

Bitcoin markets have been taking a break from their characteristic volatility, moving within a reasonably tight range after suffering notable losses earlier …

Bitcoin sign with arrow pointing up. Cyptocurrency or digital money concept image. Fintech

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Bitcoin markets have been taking a break from their characteristic volatility, moving within a reasonably tight range after suffering notable losses earlier this week.

The digital currency has been fluctuating between $9,900 and $10,200 since roughly 6 a.m. EDT, CoinDesk figures show.

The cryptocurrency entered this range after falling to as little as $9,682.71 early this morning, down roughly 20% in less than a week, additional CoinDesk data reveals.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin fell to this level, its lowest in more than two weeks, earlier today as markets responded to the latest developments surrounding the so-called trade war between the U.S. and China.

Jeff Dorman, chief investment officer of asset manager Arca, weighed in on this recent drop, emphasizing that the digital currency was “bound to come down when the Yuan stabilized and Trump walked back the tariffs for the time being.”

This makes sense, seeing as how the cryptocurrency shot up last week over the Yuan devaluation, central bank interest rate cuts and Trump tariff threats.”

Conflicting Dynamics

When explaining the relative stability in bitcoin prices that has materialized today, analysts claimed that investors were responding to oversold conditions, buying up the digital currency and helping to counteract bearish factors like the recent news that Barclays was no longer working with Coinbase, one of the cryptocurrency industry’s most highly visible exchanges.

These fluctuations are driven predominately by traders,” said Chris Keshian, a former cryptocurrency hedge fund manager.

“The market is stabilizing around $10k after the run earlier this year,” he added, stating that some investors were simply buying the dip.

Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, also spoke to the different variables helping drive the price movements of the first digital currency to scale.

He mentioned the U.S. Securities and Exchange Commission’s (SEC) recent decision to delay providing a ruling on three separate proposals involving bitcoin exchange-traded funds (ETFs), emphasizing that this development, as well as the recent news surrounding Coinbase, could certainly be perceived as “short term pessimism.”

In contrast to these bearish developments, some traders have been flocking to bitcoin, causing it to function as a global safe-haven asset.

At any rate, many investors are nervous, said Hayter.

“People are skittish,” he stated.

Disclosure: I own some bitcoin, bitcoin cash and ether.

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Barclays Ends Banking Relationship with Coinbase, GBP Transactions to Slow

Barclays has eventually cut ties with Coinbase according to Coindesk report on Aug. 13. Basically, an unnamed industry source stated that the British …

Barclays has eventually cut ties with Coinbase according to Coindesk report on Aug. 13.

Basically, an unnamed industry source stated that the British banking giant would no longer offer banking services to the United States crypto exchange.

Besides severing the relationship that Coinbase had after it opening a Barclays bank account back in March 2018, the announcement could hit the crypto community hard.

End-users of Coindesk may no longer gain access to the United Kingdom’s Faster Payments Scheme. In effect, the exchange of cryptocurrencies for British pounds sterling will slow down dramatically as the major crypto exchange has lost a crucial traditional banking establishment.

Still, no one knows the precise reason for the split, but an anonymous source has given Coindesk the following speculations:

“It is my understanding that Barclays’ risk appetite has contracted a little — I’m not sure exactly why or what’s been driving that, maybe there has been some activity they are not happy with. But it’s about Barclays’ comfort level with crypto as a whole.”

Meanwhile, Coinbase can use a less established, younger operation Clearbank to continue accessing UK banking.

Barclays has also, at one instance, diminished its involvement in the crypto sphere. After two employees decided to remove information about ongoing digital assets work from their respective LinkedIn profiles in August 2018, the bank later made official denials about opening a crypto trading desk.

In recent months, Coinbase has not undergone any great suffering. Even more interesting, July reports showed that new users amounting to eight million had been registered in the preceding year.

Also, in that month, Brian Armstrong — the CEO of Coinbase — expressed Coinbase plans to promote crypto adoption beyond basically engaging in trading widely.

Source:https://cointelegraph.com/news/barclays-may-be-ending-work-with-coinbase-transactions-in-gbp-to-slow

https://www.coindesk.com/barclays-is-no-longer-banking-coinbase

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New Zealand gives a vote of confidence in bitcoin, while the US remains wary

These include bitcoin, bitcoin cash, bitcoin gold, ether, and litecoin. This doesn’t include filecoin, dentacoin, and CRYPTO20, the tax agency noted.

Kiwis can now get paid in crypto.

Bitcoin faces legal uncertainty in much of the world, but this month the cryptocurrency received a major vote of confidence in New Zealand. In its August tax information bulletin (pdf), the country’s Inland Revenue Department published binding rules approving salaries and wages paid in cryptocurrency.

Digital currency proponents applauded the arrangement as innovative. Many who work in the crypto industry as contractors—often as programmers, community managers, and researchers—accept payment in tokens. In the US, by comparison, crypto enthusiasts have been waiting nearly five years for the IRS to update its guidance on the treatment of crypto transactions.

Although New Zealand approved crypto as compensation for salaried and wage-earning workers, the framework is strict. Crypto payments must be subject to an employment agreement, be for a fixed amount, and comprise a “regular part of the employee’s remuneration.” Furthermore, crypto pay cannot be subject to a “lock-up” period, and the digital currency (or currencies) must be readily convertible into a traditional, government-backed currency like the New Zealand Dollar. New Zealand’s Inland Revenue also notes that crypto payments are subject to normal tax laws, like the country’s Pay As You Earn and Fringe Benefits Tax regimes.

New Zealand’s tax authority names a few examples of cryptocurrencies that are okay to use, because “a significant purpose of the crypto-asset is to function like a currency.” These include bitcoin, bitcoin cash, bitcoin gold, ether, and litecoin. This doesn’t include filecoin, dentacoin, and CRYPTO20, the tax agency noted.

Cryptos “pegged to one or more fiat currencies,” such as Tether and the Paxos Standard, are also okay for use as wages and salaries. Only stablecoins that are readily convertible into fiat money on an exchange satisfy the rules, the agency stressed.

Altogether, New Zealand’s approach to crypto pay could encourage more mainstream adoption of crypto assets, under certain conditions. In a country known for monetary innovation, the move could serve as a model for other regulators.

🇺🇸🏦💸

REGULATORY WATCH

The US Securities and Exchange Commission postponed a decision on exchange-traded funds linked to bitcoin once again. If approved, a bitcoin ETF could allow the cryptocurrency to be listed alongside stocks on many brokerage platforms. On stock trading websites today, bitcoin is sometimes listed through Grayscale’s GBTC, a fund that typically trades at a 20% premium or more to the prevailing bitcoin price.

Many crypto traders believe a bitcoin ETF would help introduce digital currency to the investing public, but SEC chairman Jay Clayton has expressed reservations about the vehicle due to frequent theft and apparent price manipulation. The SEC has until mid-October to make a final decision on bitcoin ETF proposals from asset managers Bitwise and VanEck. The repeated delays in coming to a decision may not be a good sign for the funds.

🔑🔑🔑

BITS AND PIECES
  • Barclays is no longer banking Coinbase (CoinDesk)
  • Jeffrey Epstein reportedly claimed to work on crypto issues for the US Treasury (WSJ)
  • China’s central bank says its own cryptocurrency is “close” to release (Bloomberg)
  • BitMEX was hit by UK’s ad regulator for “misleading” bitcoin graph in a newspaper (The Block)
  • What happens when bitcoin bros talk cryptography (FT Alphaville)
  • Getting our heads around Facebook money (Radio New Zealand)
  • An attempted heist at Coinbase was scary good, even though it failed (MIT Tech Review)

Please send news, tips, and crypto pay slips to privatekey@qz.com. Today’s Private Key was written by Matthew De Silva and edited by Jason Karaian. Know what you own, and know why you own it.

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Bitcoin Daily: Nevada Tightens Regs On Crypto Kiosks; Barclays And Coinbase Call It Quits

In other news, sources have told Crypto Vest that Barclays has ended its partnership as banking provider for Coinbase UK. There are reports that …

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Nevada is enforcing stricter regulations on cryptocurrency kiosks, and will now require them to have a state money transmission license.

BitAML Senior Advisor Annelise Strader told CoinDesk that the state’s regulatory team recently changed its interpretation of what is considered a money transmitter within the state. As a result, the $5,000 kiosks need to be licensed by the state and will require a surety bond requirement of $10,00 upfront plus $5,000 for each location. Bond requirements max out at $250,000.

In other news, sources have told Crypto Vest that Barclays has ended its partnership as banking provider for Coinbase UK. There are reports that ClearBank will take over the services.

The change means that UK buyers won’t have access to crypto coin ZCash, which uses a native protocol to obscure transactions. It will still be available to US-based and EU-based traders.

Switching to a smaller bank seems to be par for the course for crypto companies in the UK as regulations get tighter and big service providers decide to cut their losses. Wells Fargo dropped Bitfinex, while Bitpanda actually received a payment service provider license so it could handle its own payments in Europe.

And Singapore startup Limestone Network is using blockchain to run a smart neighborhood in the Cambodian capital.

The 100-hectare mixed-use development in Phnom Penh is made up of residential properties, offices, retail centers, schools and a large-scale exhibition hall. There are 10,000 business tenants and a daily population of 190,000. A blockchain-powered ID system creates a digital passport for residents and commuters via the Limestone mobile app.

“Most cities try to become smart cities by installing hardware like sensors and cameras, but our starting point begins with the software,” said Eddie Lee, the firm’s co-founder and managing partner, according to Tech in Asia. “Building on a hybrid blockchain infrastructure, the smart city collects information through residents’ multiple daily touchpoints. These create an understanding of how the city moves, lives, and functions.”