Author: Cristian Lipciuc

Cristian Lipciuc is a blockchain journalist working with startup companies across multiple domains such as freelancing, app development & cryptocurrency. Cristian specializes in applied blockchain technologies, cryptocurrency integration, the adoption of new technologies by governments, and cybersecurity.

Categories
Bitcoin Mining Cryptocurrency Law Digital Asset Mining

Iran Authorises 30 Mining Facilities Following Mass Seizure of Mining Rigs

Last week, Iranian authorities seized 7000 mining rigs located in the vicinity of capital city Tehran, citing unauthorised energy consumption and illegal operations.

Now, Iran seems to be clarifying that it does not want to follow China’s lead and ban crypto mining altogether – rather, the Iranian government wants to ensure crypto miners abide by the rules and do not cause undue stress to the power grid.

Limiting Consumption During Peak Hours

The abundance of crypto mining farms in Iran – and their associated intensive use of the power grid – is the result of financial sanctions imposed on the country by the US. Since Iran is forbidden from using US dollars and partially restricted from using SWIFT, the government has looked to cryptocurrencies for alternative payment methods.

In order to help local entrepreneurs find their footing, miners were offered a discount of nearly 50% on their electricity bills if they could prove the power was being used for crypto mining.

However, it appears this measure was a little too successful.

Energy Utility Threatens Shutdowns

Government research has revealed authorised crypto mining farms in Iran consume around 300 megawatts each day. However, according to Tavanir – the company that operates Iran’s power grid – illegal mining operations consume an additional 2000 megawatts a day. As a result, Tavanir has announced it will cut off power to mining facilities when the power grid is under stress.

Following crackdowns on illegal operations, 30 mining facilities have been authorised by the government as of June 27. Six of these are in Semnan province. Alborz, Zanjan, Mazandaran and East Azerbaijan provinces are also home to mining operations.

Tehran is home to one newly licensed crypto mining operation – in stark contrast to more than 180 unauthorised operations in the capital region that have been shut down during the past year.

Iran is not the only country to crack down on unauthorised mining. China – a close economic partner of Iran – has also recently called a halt.

Categories
Blockchain Crypto Art NFTs

Jay-Z NFT Goes On Sale at Sotheby’s – This Time, Approved by Jay-Z

An attempted sale of rapper Jay-Z’s debut album Reasonable Doubt as an NFT was recently stopped by the US District Court of New York.

As one of the owners of Jay-Z’s label Roc-A-Fella Records, Damon Dash allegedly attempted to sell a tokenised version of the album. However, Dash stated he was only selling his stake in the company.

No More Doubt About Reasonable Doubt NFT

In any case, NFT artworks of the Reasonable Doubt album will be going on sale at Sotheby’s – this time with the approval of Jay-Z himself.

From June 25, Sotheby’s put up for auction an NFT commemorating the album, just in time for its 25th anniversary. Bidding starts at $1000 and will continue until July 2.

An undisclosed percentage of the sale proceeds will go to the Shawn Carter Foundation, an organisation that provides scholarships to low-income and at-risk students.

The artwork is called “Heir to the Throne” – which was reportedly the original name of the album in its early stages of conception. The artwork was created by Brooklyn-based Afro-American artist and curator Derrick Adams, who has maintained a long professional relationship with Jay-Z.

Over the years Jay has collected and supported my work and so this collaboration is particularly fulfilling. With this NFT project, we jointly embrace the opportunity to further the conversation about how artists of different mediums contribute to a more inclusive society. Jay’s album Reasonable Doubt changed the game 25 years ago, and continues to influence so many of us.

Artist and curator Derrick Adams

This NFT is the first to be created by Adams – and the first to be sold by Jay-Z. The artwork can be viewed at Sotheby’s Decentraland art gallery.

Categories
Crypto News Investing Trading

$1 Billion Valuation for Institutional Crypto Trading Company Amber Group

Amber Group
Amber Group https://twitter.com/ambergroup_io/status/1347683343299563522

Amber Group – a crypto startup focusing on institutional investors and their involvement in cryptocurrencies – has just raised US$1 billion in funding.

$100 Million Added to Amber Group’s Valuation

The investment round was led by Tiger Global – the hedge fund with the biggest Return On Investment (ROI) for its clients in 2020 – and the China Renaissance bank. Arena Holdings and DCM Ventures also took part in the fundraising round and together contributed $100 million to Amber Group’s valuation.

This contribution, worth a 10th of Amber’s total value, is roughly equal to its total capital one year ago, when it was valued at around $100 million. At the time, the group had just finished raising $28 million worth of capital.

The vast majority – between 70% and 80% – of the profit generated by Amber Holdings comes from the net interest margin, which is a measure of lending profitability.

Amber Strategy Seems to be Working Well

To put it briefly, once a customer deposits a sum with Amber Holdings, they are offered an interest rate on their liquidity. Amber then pools the liquidity from multiple customers and lends it out to even more customers at different rates – and, judging by the response from institutional investors, the strategy seems to be working pretty well.

A further 15% of Amber Group’s profits comes from transaction fees. According to CEO Michael Wu, the funding will mostly be put to use hiring new staff and investing in state-of-the-art security measures.

Wu added that although up until now Amber had been focusing mostly on institutional investors, crypto investment solutions for the average Joe were in the works – and the necessary regulatory practices were being looked into.

We don’t advocate heavy speculation or high use of leverage, rather we want our customers to be more long term, focus on risk management and get stable and attractive yield[s] … I think regulation is always a challenge for this industry because it’s a very global industry. It’s always about staying ahead, or at least staying aware of the different regulation. We always take a very conservative approach to that.

Michael Wu, Amber Group CEO

Although Bitcoin has gone through quite a rough patch since May, support from institutional investors hasn’t slowed down – contrasting a similar situation in 2017.

Categories
Crypto News Cryptocurrency Law Europe Investing

Norwegian Government Issues Warning on Cryptocurrencies, Calls For Regulation

Opera building in Oslo
Opera building in Oslo https://unsplash.com/photos/3VCrw7nHH4A

An official statement by Finanstilsynet – the Norwegian entity in charge of financial regulation – has warned consumers to be wary of cryptocurrency investments.

Despite acknowledging the fact that many institutional investors have shown a marked interest in cryptocurrency, Finanstilsynet stated that unlike securities, bonds and other investments, cryptocurrencies are not well regulated within Europe.

Although Norway is not a part of the EU, cooperation between the EU and Norway is very close – and the statement pointed to the EU’s proposed legislation for cryptocurrency that should start providing a general framework for crypto regulation within the EU.

Until such regulations are in place, anyone considering trading in cryptocurrency should think carefully and understand the significant risk that such investments entail. Consumers who want to try this with open eyes should not invest more than they can afford to lose.

Finanstilsynet statement

It’s worth noting that the proposed legislation will not be adopted wholesale, as each EU country controls its own legislative system.

“Certifications” Can Be Misleading

The post also states that many crypto-related businesses in Norway feature a “seal of approval” from Finanstilsynet. However, Finanstilsynet clarified that these businesses are not exactly approved by it.

All businesses functioning in Norway, crypto or not, are required to submit information to Finanstilsynet in order to comply with anti-money laundering (AML) regulations. However, this does not mean that the businesses in question are actually endorsed by Finanstilsynet – only that they comply with rules and regulations already set in place.

The statement also notes there are a number of disreputable sites that are nothing but scams – and that although the Norwegian government is doing its best to get these websites shut down, caution is highly advised.

Overall, the view of Norwegian regulatory bodies on cryptocurrencies is not negative – instead, it stresses the need for regulation and consumer protection similar to those drawn up for other forms of investment.

Categories
Crypto News Cryptocurrency Law NFTs

Sale of NFT Version of Jay-Z’s Debut Album Stopped by Courts

Jay-Z performing

A temporary disposition by New York legal authorities has stopped the attempted sale of an NFT version of US rapper Jay-Z’s first album, Reasonable Doubt.

The NFT auction has been reportedly interrupted after Roc-A-Fella Records filed a complaint against its co-founder Damon Dash.

Record Label Ownership Rights Unclear

The album is owned by Roc-A-Fella Records, established in 1996 by Damon Dash, Jay-Z and Kareem Burke, and released the same year.

Now, according to the record label, Damon Dash was allegedly attempting to auction off an NFT version of the album – alongside its copyright – on an NFT marketplace named SuperFarm, co-founded by crypto YouTube personality EllioTrades.

It’s unclear whether the owners of the NFT marketplace knew about any of the controversy – or even if the alleged auction attempt actually took place. However, according to Roc-A-Fella Records, another listing on a different marketplace has also been attempted.

The claims against Dash include breach of fiduciary duty, unjust enrichment, and conversion. Roc-A-Fella also stated that the album had already been minted as an NFT.

The bottom line is simple: Dash can’t sell what he doesn’t own. By attempting such a sale, Dash has converted a corporate asset and has breached his fiduciary duties.

Statement from Roc-A-Fella Records

The Attempted Sale ‘Never Happened’: Dash

Dash, however, stated that the sale attempt never happened, and that he was only attempting to sell off his personal stake in the company.

There wasn’t an announcement at all. Don’t you think that if I made an announcement that I’m selling Reasonable Doubt you would’ve heard about it? What they’re accusing me of is minting a whole album. So if it’s already minted, it’s already on the blockchain, that means it’s already there. [The sale] never happened, and they know it never happened.

Damon Dash

A court hearing is set for July 1 in which Roc-A-Fella will be claiming “nominal damages, punitive damages, the cost of the lawsuit and attorney fees, and the enjoinment of Dash from selling any interest in the album”.

Jay-Z is not the first rapper to show interest in NFTs – Eminem’s “ShadyCon” was announced earlier this year.

Categories
Cryptocurrencies Investing Trading

6 Important Lessons Learnt from Real Crypto Traders

Over the years, people have made a lot of money from crypto – most of whom have done lots of research so they know what they are getting into.

Unfortunately, a lot of promoters, mainly on social media such as Twitter, Facebook and YouTube, feature enthusiastically small cap coins they found profitable and lead plenty astray.

Here is a quick list of six important things to keep in mind while trading crypto (with quotes from real traders via Redditors):

1. Don’t Invest What You Can’t Afford To Lose

Trading crypto is a fundamentally risky endeavour – so only invest what you can afford, as these crypto traders found out.

This crypto trader lost all his crypto while he was sleeping.

I woke up this morning realising that I just lost all of my hard earned money and savings in about 2 hours. Someone got access to my private key (or at least I think so) and everything was gone.

Crypto Trader on Reddit

This crypto trader lost his all his savings by “mistakes”.

Right now I am sick to my stomach, I cannot sleep, and can barely function. After losing money left and right, I finally tipped last night and lost the last bit of a big chunk of my savings that I had ‘invested’ in Cryptos. This story is very hard for me to tell, because I am ashamed. Ashamed of how naive I have been, and how I made mistake, after mistake, after mistake. Saving the dumbest mistake for the last.

Crypto Trader on Reddit

This crypto trader explains the pain of losing money you can’t afford to lose.

For real guys, DON’T put money you can’t afford to lose, it hurts mentally and physically because you get depressed, really thought I was prepared to do that.

Crypto Trader on Reddit

2. The Bear Market Can Strike At Any Time

Over the years, we have seen plenty of bear markets, and they can hit at any time, as these crypto traders found out.

This crypto trader explains how quick the bear market can hit.

Obviously hindsight is 20/20 but I think it’s important to realise that things can seemingly look normal and suddenly you find yourself in a bear market. Some of these were pretty spot on, others not so much.

Crypto Trader on Reddit

This crypto trader explains why “this time is not different”.

Please, please, please be aware that this time is not different. The bear market will return, and it will destroy all of your gains, and at first you’ll tell yourself that it’s just a small correction, and then everyone on Reddit will say it’s just the Chinese new year or something like that, and then you’ll kick yourself for not selling sooner and you promise you’ll sell as soon as there’s another price increase, but it never comes, and you finally give up and accept that you lost a ton of money because you thought this time was different and you thought you could time the market. But it’s not and you can’t.

Crypto Trader on Reddit

3. Partly Cashing Out Can Pay Off

As these crypto traders found out, once you’ve made enough to recoup your initial investment, a partial cash out can pay off, especially in an unpredictable market.

This crypto trader was in relief that he cashed some out before a dip.

I sold a small amount to recover my initial $3000 investment as the price rose; this was a strong psychological barrier for me as now I was purely playing with house money, [so] I literally cannot lose as long as I don’t go chasing losses […] I cashed out $200k yesterday, enough to make an impact in my life while still holding on to a majority of my HODLings. This was literally minutes before yesterday’s dip happened so the sense of relief that came over me was only further reinforced by the dip that soon followed.

Crypto Trader on Reddit

This crypto trader took his family on a holiday with the profits he took.

For the first time … tonight … I took profit!! I didn’t want to do it. I didn’t want to take money away from the investment. I’m thinking long term with what I put in.

We don’t take many vacations as a family. We cut the month tight with bills and our planned vacation got REAL tight. So I sold some profit, not a lot. Enough to enjoy time with my fam!! I thought I may regret it, but I didn’t!! It was totally worth it.

Crypto Trader on Reddit

This crypto trader did not take profits and was feeling the pain of “losing his gains”.

I lost 250k gains and now at losses. 🙁 I joined crypto around March and I was proud that I bought coins that gave me 70% gains because of HODL. But I was too greedy that I didn’t take profit because I didn’t want to let go of the coins I bought for cheap. Now those coins are back to my entry price and even lower. All my gains gone. I don’t know what to do 🙁 If I sell now, what haunts me is that I could’ve sold with all the gains but instead, I’m now selling with losses. I feel bad about this huhu.

Crypto Trader on Reddit

4. Sometimes HODLing Is The Best Strategy

I think we’ve all seen a coin boom after we just sold it. Sometimes just HODLing a coin can pay off, especially when the market follows cycles, as these crypto traders found out.

This crypto trader feels the pain of not HODLing and what might have been if he did, just, HODL.

I watch another bull run happen without being on board, in Dogecoin, the one I got rid of. My holdings would have been worth over $1 million if I held. I track down my old doge wallet info desperately hoping I’m remembering wrong and that I’m still holding some, but it’s empty. The ETH I traded it for is up nicely, but a small fraction of what the doge would have been worth. Strange how upsetting it is to be up 1000% on an investment when you realise you could be up 10,000%.

Crypto Trader on Reddit

This crypto trader’s plan was to just HODL until the next bull run.

I had been through enough bull cycles by this time to know that if/when the next one would eventually came it would dwarf all others. And by the time that happened, what I had learned was that I needed to have a solid plan in place so I could execute it without making irrational decisions.

Crypto Trader on Reddit

5. Day Trading Is A Dangerous Game

Timing the market is not an easy thing to do and trying to predict the bottoms is like “trying to catch a falling knife”. Day trading cryptocurrencies is not an easy game as these crypto traders found out.

It’s really hard to predict which direction the market is going short term. You might see a quick spike up sell a bit and wait for the correction. Then it comes back down and you buy it back. What goes wrong is when you wait a little too long and it starts going back up again, and your buy order never goes thru bc the price is rising / holding / rising / etc….. You bid a penny below value and it just doesnt dip back until it’s past your sell point anyway, now you lost.

Crypto Trader on Reddit

This crypto trader’s friends all lost trying to day trade.

A friend of mine made 400K with day trading. All my other friends lost an insane amount of money trying to do the same. Unless you have the time to become pro I wouldn’t recommend it.

Crypto Trader on Reddit

This crypto trader was trying to “revenge trade” to recoup his losses.

It got to the point where my bank account had no money left to fund my Bitmex account and that’s where I made my biggest mistake. I decided to “borrow” funds from my BTC and ETH cold storage to try to recuperate everything I’ve lost so far on Bitmex. And as I now know, revenge trading never works. Today marked the end of my crypto career, all my alts were liquidated when BTC broke 9k and pretty much dumped right after.

Crypto Trader on Reddit

6. Keep Your Crypto Safe

If you hold your crypto on exchanges, then they control the wallets’ private keys, so they effectively “own” the crypto. Having your crypto stored in a safe location can pay off in the long run, as these crypto traders found out the hard way.

College roommates convinced me to buy bitcoin back in 2010, i ended up buying 10,000 bitcoins for $60-80 and storing them on my laptop, forg[o]t about it until 2014 when my friend randomly mentions it hitting $1k and a good buying opportunity, i rush home to look for my old broken laptop which had the bitcoins on it in the hard drive to discover my mom threw it out and the bitcoins were gone forever, i become severely depressed and affected by this and til this day cant help but think what if i had those bitcoins.

Crypto Trader on Reddit

This crypto trader lost his crypto he had stored on his phone.

Lost .5 BTC off my phone which is a lot to me :(, I recently switched from blockchain wallet to the bitcoin wallet by andreas schildbach which i backed up, but the file was on my phone. I got a new phone HTC one m8 and was excited, had the people at ATT factory reset my note 2 without even thinking in excitement… And its all gone. I cannot find the private key 🙁

Crypto Trader on Reddit

This crypto trader’s hardware wallet is now swimming with the fishes.

It was a tragic boating accident. I just moved all my bitcoin to a hardware wallet, when it happened to slip my hands and into the ocean. Any further transfers done on that wallet are because of Poseidon.

Crypto Trader on Reddit
Categories
Bitcoin Mining China Ethereum

Sichuan Officials Order Shutdown of Crypto Mining Facilities

According to Chinese media reports, the government of Ya’an – a city in the Sichuan region – has started shutting down crypto mining operations by force and redeploying the hydroelectric plants used to power them.

The news follows that of the China crackdown on Bitcoin mining we reported on a few weeks ago.

Ethereum Hashrate Down By 7%

The government order has apparently caused Ethereum’s hashrate to drop by 7%. It’s safe to assume the hashrate of Bitcoin has also gone down – although at the time of writing, there was no data to back this up.

The cease-and-desist orders started going out on June 18 as the local Ya’an government decided that the hydroelectric power being used to fuel these mining farms could be put to better use elsewhere.

A total of 26 big-league mining plants were identified and shut down. Although lesser mining farms seem to have been passed up by the order, it’s unclear whether these smaller operations will be allowed to remain open.

There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will be shut down in the short term.

PANews, China

Hydropower Means Green Energy is Not an Issue

This isn’t about green energy, either – according to Jiang Zhuoer, the founder of mining pool BTC.Top, all crypto miners in Sichuan are running their operations off hydropower. This mirrors the overall situation across China, where up to 90% of mining operations allegedly run on hydropower as well.

Following the document served on June 18, law enforcement agencies immediately began to shut down the identified mining operations. Furthermore, a report to local government authorities is due on June 25 regarding the success of the operation.

This could mean one of two things:

  • First, it could mean the government simply wants to see the exact impact of large-scale mining operations on the local power grid, after which a more permanent decision can be taken
  • However, this could also mean the mining operations have shut for good – and that the requested report is merely a formality.

With China shutting down its mining operations, we may see other countries such as the US and El Salvador take up the hashpower by running eco-friendly crypto mining operations.

Categories
Bitcoin Bitcoin Mining Industries

Green Bitcoin Mining Company Bitfarms to Start Trading on the US Stockmarket

Bitfarms, a Quebecois company in charge of one of the largest crypto mining operations in North America, will be listed on NASDAQ on June 21. It will also continue to be listed on the Toronto Stock Exchange (TSX) as BITF.

The company had been waiting for its DTC eligibility check to be passed but is now cleared to enter the US stock exchange.

More Than 99% Clean Energy

The company, soon to be listed as $BITF, is committed to using green energy – and more than 99% of the power it uses to run its operations comes from hydroelectric energy.

Bitfarms Fulfils Long-Range Ambition

Argentinian entrepreneur Emiliano Grodzki – founder and CEO of Bitfarms – commented on the news, stating that a NASDAQ listing had been in the company’s sights for a while. Now that it’s finally achieved this goal, he said it was proud to be largest publicly traded eco-friendly mining farm:

This belief has guided us as we worked to build one of the largest Bitcoin mining operations worldwide. When Bitfarms begins trading on the NASDAQ, it will be the largest publicly traded Bitcoin miner in North America using greater than 99% hydroelectric renewable electricity. We are proud to be a leader in the industry in setting the highest standards for ourselves and our mining operations and to be uplisting to one of the most prestigious stock exchanges in the world. Having reached this milestone we are even more excited about where it will take our company next.”

Emiliano Grodzki

The company was founded in 2017 and controls five mining facilities in Quebec. Rated as a “Rising Star” by the TSX in February, Bitfarms apparently mines nearly 1% of all Bitcoin currently in circulation.

Bitfarms is just one of several eco-friendly Bitcoin projects, with Texas crypto mining rush and El Salvador volcano Bitcoin mining, working on ways to make Bitcoin less of a problem for the environment.

Categories
Crypto Exchange Crypto News Korea Regulation

South Korea Exchanges Stop Trading of Certain Cryptos Amid Regulation Pressure

In order to operate in South Korea, exchanges now need an ISMS certificate issued by the Korea Internet and Security Agency (KISA). After receiving this certificate, 11 out of 20 crypto exchanges have either delisted certain coins, or issued warnings about them.

Although it’s been easier for high-volume crypto exchanges to find banks willing to vouch for them, smaller exchanges have been struggling to get their papers in order. The deadline for compliance is early September, by which time all crypto exchanges operating in South Korea must obtain the certificate or cease operations.

Dodgy Exchanges On Notice

According to The Korea Times, banks are now required to treat crypto exchanges as high-risk clients and will be required to deny service to crypto exchanges deemed dodgy. In addition, fines worth a total of US$89,519 have been issued to cryptocurrency exchange employees who trade on the platform they are employed by, in a bid to reduce unfair advantages.

Among the platforms delisting tokens are Upbit, Coinbit and Huobi.

Upbit has delisted tokens such as Paycoin, Maro, Observer, Solve.Care and Quiztok:

Upbit will always do its best for your safe transactions.

Coinbit Suspends Eight, Warns 28 More

Meanwhile, Coinbit has suspended the trade of eight other cryptocurrencies and set in place a warning for 28 more that will appear if a potential customer wants to trade those cryptocurrencies.

Huobi Token Delisted, but for How Long?

A curious case of delisting is Huobi. Despite being one of the first companies to get the necessary paperwork done, Huobi has halted the trade of its proprietary Huobi Token. There is no information on whether this is a temporary delisting or not.

The delisting of coins deemed risky by exchanges in South Korea seems to be part of a bigger trend in the APAC region, with Thailand also banning “meme coins” and some NFTs, and China subjecting cryptocurrencies to the usual scrutiny.

Categories
Bitcoin Cryptocurrencies Investing

$43 Billion of Bitcoin is Locked Up in Trusts and Global Investment Funds

A report by Financial News London shows that over US$43 billion worth of Bitcoin is currently held by investment companies.

These funds are spread across hedge funds, ETFs and wrapped Bitcoin (wBTC).

19 Firms Declare $6.5 Billion Share of Investments

Another report by Nickel Digital shows that of this total sum, around $6.5 billion worth of BTC has been declared by 19 companies, such as Goldman Sachs, Blackrock, Deutsche Bank and JPMorgan.

MAJOR DEVELOPMENTS IN DIGITAL ASSETS – Report by Nickel Digital

Commenting on the reports, Nickel Digital CEO Anatoly Crachilov said that not only can BTC serve as a hedge against inflation, its adoption by financial institutions may reduce its overall volatility in the near future.

The cryptoassets space remains volatile as it is going through the early stages of an adoption curve. [This is] a very important endorsement for Bitcoin’s emerging functionality of the hedge against inflation. Increasing allocations by large-scale institutional investors and corporate players is expected to lead to a reduction of [Bitcoin’s] volatility over time, due to a longer-term, stickier type of capital brought by those investors.

Nickel Digital CEO Anatoly Crachilov

The same report estimates that $4.3 billion was spent by these companies purchasing the BTC, bringing a profit of over $2 billion.

The vast majority of these companies are based in the US, with a few other publicly declared Bitcoin investors located in Europe, Australia and Asia. However, another survey by Nickel Digital shows that 81% of European institutional investors believe the amount of crypto purchased by wealth management firms is about to sharply increase.

Although the wind may be blowing in favour of mass crypto adoption, it’s important to remember that in the financial world things can change on a whim – so, as always, Do Your Own Research.