Category: Crypto News

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Crypto News Ethereum

Vitalik Buterin Donates $60 Million to Charity After Dumping Shiba Inu

Vitalik Buterin has donated at least US$ 60 million worth of Ethereum (ETH), after dumping massive amounts of three dog-theme coins: SHIBA, AKITA, and DOGELON.

SHIBA Developers Gifted Vitalik The Coins

The SHIBA developers, who are also behind the other dog-theme tokens (AKITA and ELON), had a rather unusual distribution strategy. Presumably, they sent large amounts of SHIB, AKITA, and ELON to Vitalik’s public address. Their idea was to present Buterin as a SHIBA supporter and that a self-made Billionaire like him wouldn’t need them. It seems to have worked as the SHIBA coin soared over 700%.

Shiba Inu’s website stated that the tokens sent were “burned,” so everyone had to buy them on the open market. Despite their plans, it seems Vitalik had a better idea.

Only a few hours later, he sold the tokens in Uniswap in exchange for ETH, selling 660 billion SHIB, 140 billion AKITA, and 43 billion ELON, totalling 15,719 ETH, around US$ 63 million.

Vitalik Sent the Funds to Charity

Vitalik sent the funds in batches to various non-profit organisations, donating the dog-themed tokens and even some of the ETH he made in the sale.

India’s Crypto Covid Relief Fund received 500 ETH and 50 trillion SHIB tokens. The Methuselah Foundation, a non-profit organisation that focuses on making people live longer, received 1,000 ETH and 430 billion ELON tokens, worth US$ 215,000.

The largest batch was sent to Givewell, an American assessment organization, which received 13,292 ETH, around US$ 50 million.

After the move, the three dog-theme coins suffered harsh price drops —around 30% for each— and Vitalik got praised by the crypto community, who called him a role model for everyone in the crypto space.

Categories
Australia Crypto News Scams

Australian BitConnect Promoter Pleads Not Guilty In Ongoing Court Battle

Alleged former BitConnect promoter John Bigatton pleaded not guilty at Downing Centre Local Court, according to his lawyer.

Bigatton, 52, was one of the promoters of BitConnect, a cryptocurrency project that turned out to be one of the biggest Ponzi schemes in the history of crypto.

Bigatton Charged with Defrauding Australian Investors

The Australian Securities and Investments Commission accused Bigatton of ripping off small investors in Australia back in 2017/2018, besides various counts of financial crime. Bigatton is facing six charges that could give him up to 10 years in prison.

Bigatton’s lawyer, Liam Macandrews, told the court his client will maintain his not guilty pleas. Magistrate Jennifer Atkinson approved Bigatton’s pleas, however, he will next appear in the District Court on June 11 to face trial without bail.

BitConnect: Greatest Fraud in Crypto History?

Bigatton was a promoter of BitConnect in Australia before its collapse in early 2018. BitConnect, a cryptocurrency and crypto exchange, had an estimated market cap of more than US$2.5 billion in December 2017.

BitConnect became wildly popular through aggressive propaganda and offering attractive returns to investors. It went from US$0.16 to $436 in 2017 but crashed as soon as U.S. authorities came in as BitConnect was an unregistered exchange.

1 hour of Bitconnect guy screeming – [Youtube]

Carlos Matos, the leader behind BitConnect and famous for the “​yell BITTCONNEEEECCTTTTT!” phrase, disappeared since the platform was shut down, only to reappear in 2018 as a health promoter, trying to leave behind his reputation as a crypto scammer.

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Bitcoin Crypto News Payments

Tesla Stops Accepting Bitcoin As Payment For Cars

Tesla Stops Accepting Bitcoin As Payment For Cars

The world’s renowned electric automobile company Tesla has stopped accepting Bitcoin (BTC) as a payment option for its vehicles, citing the environmental impact of the energy used in maintaining the network.

Tesla is Concerned About Bitcoin’s Intensive Energy Usage

The founder of Tesla, Elon Musk, recently shared the notice, wherein the company asserted that more fossil fuels are being burned as energy for mining Bitcoin. Hence, they decided to discontinue the Bitcoin payment option, as Tesla is keener on the improvement of the planetary condition. 

Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at a great cost to the environment.

the company noted.

At the moment, Tesla said it’s looking at accepting other cryptocurrencies that use less than one percent of Bitcoin’s energy. As for its Bitcoin reserve, the company noted that it wouldn’t sell off its holdings. Tesla might resume Bitcoin payments if/when sustainable energy is used for BTC mining activities, according to the notice.

Crypto Twitter Reaction to Tesla’s Decision

Tesla’s announcement to stop accepting Bitcoin sparked mixed feelings for crypto users. Some argued that the decision was only to impress/support their application to enter into the United States’ renewable fuel credit market. 

Whatever be the reason, some people believe it’s for a good cause and that it can influence more usage of renewable energy for Bitcoin and cryptocurrency mining. 

Meanwhile, Bitcoin took a hit after the announcement. About $2 billion USD in BTC futures were liquidated as the cryptocurrency declined below $50,000 USD. At the time of writing, Bitcoin was trading at $48,066 on CoinMarketCap.

Related: Two Australians Lose $130,000 To Tesla Scam While Buying The Electric Car Online

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Crypto News Tether

Tether Finally Reveals Its Breakdown of USDT Reserve Backing

Tether Inc., the company behind the largest USD-backed stablecoin (USDT), has published a breakdown of asset categories that make up the stablecoin reserve. This is actually the first time the company reveals its reserve assets since the inception in 2014. 

Only 3.87% of USDT Reserve is Held in Cash

In the publication, Tether broke down its reserve assets into four categories. The majority of USDT reserves (75.85 percent) are held under the “Cash & Cash Equivalents & Other Short-Term Deposits  &  Commercial Paper” category. Further breakdown of this particular category shows that the company holds less cash reserve for the stablecoin. 

The allocation in this category is as follows:

  • Commercial Paper (65.39%) 
  • Fiduciary Deposits (24.20%) 
  • Cash (3.87%) 
  • Reverse Repo Notes (3.60%) 
  • Treasury Bills (2.94%)

The remaining 24 percent are held in Secured  Loans (12.55%), Corporate Bonds, Funds & Precious Metals (9.96%), and 1.64 percent in other investments that include cryptocurrencies.

Tether Commits to Ensuring Transparency of USDT

Having suffered several criticisms of market manipulation and shady reserve, Tether has since committed to ensuring transparency of its stablecoin. 

Today’s publication reflects our continued dedication to making this information public as part of our ongoing commitment to transparency and setting the standard in our industry. We embrace that commitment to our community.

Tether wrote. 

In March, Tether also released a transparency report which claimed that all USDT in circulation is fully backed by the reserve, as audited by Moore Cayman.

According to CoinMarketCap, there are currently 57,755,893,177 USDT in circulation, meaning that Tether holds over $57 billion USD in reserve for the coins.

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Bitcoin Crypto News Cryptocurrency Tax Europe Investing

Bitcoin Trading Tax In Hungary Drops 50% In 2022 COVID Program

Hungary has had a year rougher than most due to the ongoing pandemic. Looking for ways to attract capital in an effort to get back on their feet, they’ve decided to slash taxes on crypto by half.

While Australia is looking at targetting crypto investors, Hungary is taking the opposite approach, by reducing its crypto taxes.

Crypto Taxes Down To 15% in Hungary

In a video posted on Facebook, Hungarian Finance minister Mihály Varga announced that the taxes on capital gains made through cryptocurrencies would be cut from 30.5% to a mere 15%.

Currently, cryptocurrencies are taxed as “other income” in Hungary, as regulations around Bitcoin and other cryptos are less developed than in other EU states.

However, this tax cut would make Hungary one of the most attractive destinations in the EU for crypto investors, alongside countries such as Germany, whose legislation rewards you for HODLing – if tokens are held for more than a year, cryptocurrency is no longer subject to taxation.

Crypto Tax Rates by Country Comparison

Here’s how Hungarian crypto taxes will measure up to other countries:

AustraliaSubject to CGT rates – up to 47%
USASubject to Property Tax – can be up to 37% in the first year
New ZealandSubject to rates for individuals and businesses
Germany0% if held for over a year – 0 tax if transaction is worth less than 600 EUR and tokens were held for less than a year
Hungary30.5% currently, soon to be reduced to 15%
Italy26%, provided profit is over 51,645.69 EUR for 7 days in a row
Spain19% to 23%
Belgium33%
Denmark55%
Israel30%
UKSubject to UK CGT – Income tax may also apply if trades are done frequently
Argentina15%
France33.33%, to be reduced to 25% in 2022
NetherlandsSubject to progressive income tax
Crypto Tax Rates Per Country

While Hungary may not be as far on the road to crypto adoption as states like Estonia, the country is taking important steps toward becoming crypto-friendly, which should attract fintechs and investors from around the globe.

If you’re in Australia and need some help with your Tax then check out the following guides:

Categories
Bitcoin Bitcoin Mining Crypto Exchange Crypto News Cryptocurrencies

Bitcoin Supply Rises After ‘Unprecedented’ Year-Long Decline

Bitcoin coins
Bitcoin coins https://unsplash.com/photos/4KJJezDyo3M

The supply of Bitcoin available on exchanges has risen after a long slide that started more than one year ago.

Data from the blockchain analysis firm Glassnode shows that the balance of Bitcoins on exchanges has experienced a recovery to hit 2,461,801.581 BTC – the highest level in a month.

This rise comes after a supply decline that started in March 2020, when the total balance on exchanges soared to more than 3,000,000.

Over-The-Counter BTC supply decline

In a recent weekly report, Glassnode also found that the Bitcoin supply at Over-The-Counter (OTC) exchanges has declined to just 6,000. OTC desks allow investors to buy crypto without making orders on the public exchange and causing price disruptions.

The total balance held by the three OTC desks we track has continued to decline throughout 2021, reaching local lows of only 6k BTC this week. This suggests demand by larger buyers exceeds available supply at these OTC desks. Furthermore, this trend clearly commenced starting in Dec 2020 at which time miners were distributing heavily. This aligns with the strong growth in institutional interest in the asset as a macro scale investment.

Glassnode

In other words, Glassnode analysis suggests that institutional adoption of Bitcoin has increased, as confirmed by multiple banks and big companies getting involved in the crypto space.

What Does The Drop In Bitcoin Balance On Exchanges Mean?

It is hard to say exactly why the supply on all exchanges has been dropping. Investors may be holding onto their Bitcoins, which could mean that another bull run is on the way.

As previously discussed, it is also important to remember that the Bitcoin protocol include halvings, which by definition reduce the issuance of new coins.

All of the above factors could be linked to the price of Bitcoin (BTC) increasing over the same period to reach a price of around $65,000 AUD.

Post by Guest Author – Jasper Hamill

Categories
Crypto News Dogecoin

Dogecoin Fans Are Trying To Rig Google’s “One Dollar” Search Results

Dogecoin DOGE on Reddit
Dogecoin DOGE from Reddit https://www.reddit.com/r/dogecoin/comments/na0r8c/one_dollar_interact_with_this_post_and_image_so/

A group of Dogecoin (DOGE) fans have launched a bid to influence Google’s search rankings so that a picture of the popular canine cryptocurrency appears whenever someone performs an image search for “one dollar”.

The call was made on a Reddit page with the title: “One Dollar. Interact with this post and image so it will be shown in searches for one dollar.”

Dogecoin DOGE on Reddit
This is the image that Dogecoin fans are trying to send up the Google Image Search rankings [Reddit]

The post refers to hopes that Dogecoin will eventually be worth one dollar, in a one-of-a-kind competition between crypto evangelists who would often speculate about Bitcoin replacing the dollar as a global currency.

Worth about 50 cents AUD at the time of writing, Elon Musk’s favourite meme coin is now the fourth largest cryptocurrency and its journey seems definitively moonbound. Yet its astronomical growth does not seem to be enough for some Doge fans.

Is It Working?

The bid to engineer the search results appears to be working. When we searched for “one dollar”, a Dogecoin image was indeed riding high in the rankings.

Doge appearing for "one dollar" search images on Google
Doge appearing for “one dollar” search images on Google

Despite the recent fluctuations in price, enthusiasm seems to be running high between Doge supporters, with Reddit user comments like “When Tesla accepts Doge, 1 Doge = $35,000, take it or leave it” or “Waiting for Tesla to accept doge since the announcement of Elon’s appearance on SNL…” where he discussed all things DOGE.

On the Reddit page advertising the stunt, users were also talking about Elon Musk’s recent poll in which he asked if Tesla should start accepting the currency. Results are in and almost 80% in favour of DOGE payments, leaving not much room for interpretation of market sentiment.

No one say whether or not Dogecoin will hit the one dollar milestone, or go to the moon – maybe even literally.

Categories
Bitcoin Mining Crypto News Cryptocurrency Law Mining Regulation

Texas Senate To Approve Bill #4474, Amid Bitcoin Mining Rush

A live broadcast was scheduled for 12 May for the discussion of H.B. No. 4474 to take place. This bill aims to get cryptocurrency recognised under commercial law, to enable superior blockchain innovation and virtual currency regulation in Texas.

Clearing Up Regulatory Uncertainty

The bill is intended to clarify a few key definitions and concepts of virtual currency:

  • The definition of “virtual currency”
  • Control of a virtual currency
  • Rights of purchaser that obtains control of a virtual currency

Representative Tan Parker first introduced the bill in March, and the bill will now go to the Texan Senate to see if there are any proposed amendments, thereafter a final vote. Should the crypto legislation pass the senate, Texas Governor Greg Abbott can sign the bill into law.

The self-proclaimed crypto supporter seems to also stand behind Bitcoin mining initiatives in Texas.

The importance of clarifying cryptocurrency laws and adding to legislation is paramount if a country wishes to house new and upcomming blockchain initiatives. With this move, Texas would be inviting companies to open up shop by reducing regulatory uncertainty.

Texas is already home to crypto mining firms BlockCap and Riot Blockchain. Both companies are also planning to expand their mining ventures in the state with the purchase of new facilities and equipment in the future. Texas is moving toward becoming a crypto-friendly state like Wyoming.

Texan Power Problems

Texas needs to sort out more than just its regulatory framework to become a crypto friendly state. If they want to increase the amount of Bitcoin mining initiatives they will also need to sort out issues with the power grid. Harsh winters in Texas usually have major repercussions for those on the grid.

Categories
Crypto News Dogecoin

More DOGE Inspired Tokens Flood The Market – Husky, Akita, MoonPaw, Shib

Iba Shinu dog photo
Iba Shinu dog photo https://unsplash.com/photos/Aka2x2D4Ph0

More dog-themed cryptocurrencies are flooding the market, following the surprising success of Dogecoin (DOGE), which was considered only a joke cryptocurrency at the early stage.

The growing interest in Dogecoin seems to have inspired the launch of similar cryptocurrencies on the Binance Smart Chain (BSC), including:

SHIB: from Dogecoin Killer to COVID Relief

SHIB has the largest market capitalization amongst these coins. It’s known as “DOGECOIN KILLER” and recently took rank 23rd on CoinMarketCap, with a $9.5 billion USD market cap. Fifty percent of the maximum supply was burned to Vitalik Buterin, the co-founder of Ethereum, while the remaining percentage was locked on the decentralized exchange, Uniswap.

However, its price tanked shortly after Vitalik donated his SHIB to Indian charity CryptoRelief – a donation worth about $1 billion USD.

DOGE Surged Over 4,300% YTD 

Many crypto users are increasingly stacking up these dog-themed coins with the hope of replicating the profits from Dogecoin. However, it remains unknown how well these new coins can play relative to DOGE.

Dogecoin was trading at $0.4602 USD during the time of writing. It’s down by 8.78 percent on a 24-hour count. 

Dogecoin price chart from CoinMarketCap

It is currently the fourth-largest digital currency, with a market capitalization of over $58 billion. The price of DOGE is up by over 4,300 percent on a year to date (YTD). Notably, the crypto gained mainstream popularity this year as many prominent personalities, including the billionaire founder of SpaceX Elon Musk, showed interest in it.

On several occasions, Elon Musk tweeted about DOGE and recently talked about it on a TV show, bringing attention to the coin.

Categories
Bitcoin Crime Crypto News Cryptocurrencies

Man Pays Hitman In Bitcoin To Kill His Wife

Hitman or assassin holds pistol with silencer in hands
Hitman or assassin holds pistol with silencer in hands https://www.dreamstime.com/stock-photo-hitman-assassin-holds-pistol-silencer-hands-image77972286

A man from Tennessee attempted to hire someone to murder his wife, paying in Bitcoin. Fortunately, his plans have been ruined by the BBC, who promptly informed the authorities.

A Nefarious Crypto Plot

According to FBI Special Agent Clay Anderson, Nelson Replogle allegedly paid Bitcoin to someone in an effort to get rid of his wife. The recipient contact came from a murder-for-hire forum, buried in the more obscure corners of the Internet.

After finding a person allegedly willing to carry out the crime, things were set in motion. The hit on his wife Ann was supposed to be carried out while she was on her way to the veterinarian with their pet.

It is not known how staff members of the British Broadcasting Corporation (BBC) learned of the plot, nonetheless they informed the authorities. The sheriff of Knoxville, TN in turn involved the FBI. Investigations quickly led from the crypto transaction, identified to have happened on Coinbase exchange, to Nelson Replogle – separate warnings have been sent to both him and his wife.

Crypto Transactions Not So Anonymous After All

Cryptocurrency transactions seem to have a degree of anonymity depending on the specific platforms and procedures used. Commercial exchange services require their customers to comply with KYC (Know-Your-Customer) regulation.

That might be the reason why the FBI managed to retrieve a lot of data related to the transaction, including name, photos and bank account of Mr Replogle, as well as a confirmation from the Internet Service Provider that the connection happened from his home.

On the contrary, the identity of the hitman remains a mystery at this stage – possibly due to using a personal wallet, disconnected to exchanges requiring KYC and detached from personally-identifiable information.

Criminal Activities Using Bitcoin

Stories like this one show once more that cryptocurrencies could be used for illegal activities, for example involving drugs or guns. Criminals however don’t seem to always know how blockchain technologies work.

It seems also worth mentioning that the portion of the crypto market used for such purposes is relatively quite small and has dropped significantly over the years.