Daily: Crypto Markets Rally! Pyramid scheme operators sentenced
Description
The markets continue to push up with Ethereum, Ripple, Bitcoin cash and EOS taking the lead. 2 Pyramid scheme operators were sentenced in South Korea for scamming 20M. Speaking & Meetups in Dubai Fu...
AI Analysis
The cryptocurrency markets are showing strong upward momentum, with the overall market cap pushing higher. Key news topics include the sentencing of crypto pyramid scheme operators in South Korea, a government scientist debunking claims of Bitcoin's widespread use in illicit activities, major investment firms lobbying the SEC for token exemptions, Walmart's exploration of blockchain for payment data, and the South Korean exchange Bithumb launching its own token.
Here's a breakdown of the key developments and insights:
* Market Rally Continues: The cryptocurrency market cap is steadily climbing, now reaching $374 billion. A significant price surge, particularly in Bitcoin, initiated this rally last Thursday, with prices generally pushing higher on Thursdays and Fridays. This week's gains are concentrated among the top 10 cryptocurrencies, with Ethereum up 10%, Ripple jumping 20%, Bitcoin Cash seeing an 18% increase, and EOS gaining 15%. This contrasts with previous days where significant gains were often seen in smaller, more volatile "outlier" projects.
* Pyramid Scheme Operators Sentenced in South Korea: Two individuals in South Korea were sentenced for operating a cryptocurrency pyramid scheme that defrauded investors of nearly $20 million. Pyramid schemes have been a persistent problem in the crypto space, with past examples including BitConnect, Bitcoin Trust and Savings, and more recently, "Proof of Weak Hands." These schemes thrive because many people don't take the time to understand the underlying technology, making it difficult to distinguish legitimate projects from scams. Pyramid schemes inherently offer no long-term value; they rely on a continuous supply of new investors ("suckers") to pay off earlier ones, eventually leading to a massive collapse when the new money runs out, similar to what happened with BitConnect. The strong advice is to conduct extensive research into any project, and if a project promises "free money" or "guaranteed returns," it's a red flag – there's never a free lunch in cryptocurrencies. The hope is that as more people educate themselves about the technology, they will be less susceptible to such schemes, though they are unlikely to disappear entirely.
* Debunking Bitcoin's Role in Illicit Activities: A government scientist from Quebec, Remy, has released research directly countering reports from outlets like Forbes that claim Bitcoin is heavily involved in illicit trading. There has been a lot of FUD (Fear, Uncertainty, Doubt) in mainstream media linking Bitcoin to drug trafficking and money laundering. However, Remy's research indicates that only a minuscule 0.6% of funds, equivalent to just 30 Bitcoin, was possibly used for illicit purposes. This figure is comparable to the illicit use rates of traditional fiat currencies. This research is significant because it dispels the fear-mongering that often surrounds new technologies, where some attempt to associate them with negative activities like terrorism funding to prevent their adoption or growth.
* Major Crypto Investors Seek SEC Exemption: Andreessen Horowitz and Union Square Ventures, two prominent investment firms, are engaged in private discussions with the U.S. Securities and Exchange Commission (SEC). Their aim is to persuade the SEC to create an exemption for certain cryptocurrency tokens, preventing them from being classified as securities. They argue that the crypto space is highly innovative and would greatly benefit from a more relaxed regulatory oversight. This ongoing dialogue is crucial to watch, as the SEC's stance could significantly shape the future of crypto regulation and innovation in the United States.
* Walmart Explores Blockchain for Payment Data: Walmart is looking into blockchain technology, filing patents to store payment data on a distributed ledger. Enterprises are realizing that blockchain offers an excellent method for data storage because it allows for easy setup of multiple nodes, efficient data feeding, and transparent, trackable alterations. While Walmart's initial exploration might focus on private, internal blockchains, it's foreseen that they will eventually need to integrate with public blockchains to communicate information externally with partners like delivery companies or auditors. This move by a major corporation highlights the growing enterprise adoption and recognition of blockchain's utility beyond just cryptocurrencies.
* Bithumb to Issue New Token in Singapore: Following the success of Binance, which pioneered building a strong community around its exchange token, the South Korean exchange Bithumb is planning to issue its own token in Singapore. Bithumb is a major player with significant exchange volumes in South Korea. The token sale might be primarily aimed at private investors. This development is interesting as it suggests Singapore is potentially relaxing its stance on Initial Coin Offerings (ICOs), a field it had largely put a ban on in September 2017. If successful, it indicates a more open regulatory environment in Singapore, particularly for tokens not classified as securities.
Overall, the crypto market is in a positive trend, but the industry continues to grapple with the challenges of scams and regulatory uncertainty, even as legitimate research and enterprise adoption demonstrate the technology's growing potential.
Transcript
Hey everyone and welcome to Box Mining Daily where we take a look at what's happening on the cryptocurrency markets and the biggest cryptocurrency news. So in terms of news, what we have today is that two people are arrested in South Korea for running a pyramid scheme and conning almost $20 million. We also have Bitcoin is not an instrument for the black markets. This is coming from a chief scientist of Quebec and offers a counterpoint to all that FUD news surrounding cryptocurrencies. We also ...