Top Crypto News – 16/10/2017

At It Again: Dimon Breaks Vow, Says Bitcoin Buyers Will ‘Pay the Price’

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Jamie Dimon is back on the bitcoin commentary bandwagon.

Just a day after declaring on a third-quarter earnings call that he would refrain commenting on the cryptocurrency, the JPMorgan Chase CEO offered a critical take on those investing in bitcoin.

“If you’re stupid enough to buy it, you’ll pay the price for it one day,” he said today at an event hosted by the Institute of International Finance, according to a report from CNBC. During the event, he reportedly voiced support for the cryptocurrency’s underlying technology – an area in which the Wall Street bank has undertaken a number of notable efforts, including the Enterprise Ethereum Alliance.

Per CNBC, Dimon also reportedly said that he “could care less about what [price] bitcoin trades at.”

A report from Bloomberg includes additional details about Dimon’s latest comments. He reportedly said that bitcoin is “great” for criminals, and that – in a refrain from yesterday – that it would be the last time he would comment on the subject.

“Who cares about bitcoin?” he was quoted as saying.

The remarks are the latest from Dimon, whose now-infamous comment in September that bitcoin is a “fraud” sparked a wave of commentary about bitcoin itself as well as the wider cryptocurrency market. Other Wall Street figures, including Goldman Sachs CEO Lloyd Blankfein and ex-Fortress billionaire Mike Novogratz, have also weighed in on the topic.

His comments also come on the day that bitcoin’s price rose above $5,800 to hit a new all-time high. At press time, the price of bitcoin is trading at about $5,689, according to CoinDesk’s Bitcoin Price Index (BPI).

Image via Wikimedia
Written by CoinDesk

 

Regulators warn retail traders against cryptocurrencies

 

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Online derivatives trading companies are taking advantage of the growth of cryptocurrency markets by allowing retail customers to bet on wildly fluctuating prices, prompting warnings from regulators.

IG Group, the UK’s largest online derivatives trading company by market share, allows retail investors to trade “contracts-for-difference” based on bitcoin and recently added another digital currency Ether. CFDs track the price of an underlying asset and allow investors to leverage their bets, magnifying gains or losses.

CMC Markets, another company in the sector, is assessing cryptocurrency products for the first time, with a view to introducing some “in the next couple of months”, it said.

They join a number of smaller companies that have started to offer CFD trading based on cryptocurrencies over the past three months.

These developments have caught the attention of the Financial Conduct Authority. “We are concerned about the growth in retail clients trading in CFDs, particularly those offered with a cryptocurrency as the underlying asset,” the FCA said. “The price volatility of the asset comes with significant risks to retail investors.”

While this is the first time the FCA has sounded the alarm over crypto-CFDs, it warned last month about another type of cryptocurrency investment: initial coin offerings, where companies issue digital “tokens” in exchange for cryptocurrencies.

Retail investors’ enthusiasm for digital currencies has grown this year as prices have soared. The value of the best-known, bitcoin, has gone from less than $250 at the end of 2015 to a peak of more than $5,800.

“This is not a liquid trading product yet. It’s premature, and not professional, to offer margin trading on cryptocurrencies to the retail segment yet – CLAUS NIELSEN AT DENMARK’S SAXO BANK”

Prices are extremely sensitive to outside events: last month the price of bitcoin fell by a fifth after Jamie Dimon, JPMorgan chief executive, called it “a fraud”.

Iqbal Gandham, UK managing director of eToro, a website that allows people to copy the strategies of other traders, said: “You’ve got an extremely volatile product on top of an extremely volatile product and you’re adding leverage to that — you’ve got to think, will it blow up?” His site added extra protection for customers within weeks of first offering crypto-CFDs last year.

This month, CySEC the regulator in Cyprus, where many small trading companies are based, warned investors that trading the products came with a “high risk of losing all your invested capital”.

It also published a directive to cap the amount customers can borrow to at most five times the amount they have on deposit.

IG offers leverage of 8:1 on bitcoin-based contracts, while another London-listed site, Plus500, which has offered crypto-CFDs since 2013, offers 30:1.

“[The platforms] should require more capital to be put down to protect the least educated traders,” said Javier Paz, an analyst at consultancy Aite Group.

Large operations such as IG Group argue that trading via its regulated service is safer than buying cryptocurrency directly from unregulated exchanges.

Others warned against offering cryptocurrency products until the market has matured. “There’s a lot of interest from active traders and investors,” said Claus Nielsen, head of markets at Denmark’s Saxo Bank, which has no immediate plans to offer crypto-CFDs. “But this is not a liquid trading product yet. It’s premature, and not professional, to offer margin trading on cryptocurrencies to the retail segment yet.”

Written by the Financial Times

Crypto Wallet Eidoo Trolls Jamie Dimon in the Wall Street Journal, Nets 20K Downloads

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Crypto startup Eidoo drew attention to its initial coin offering (ICO) by using a full-page advertisement in The Wall Street Journal to troll JPMorgan chief executive Jamie Dimon, an ardent bitcoin critic.

Last month, Dimon attracted a great deal of media attention by labeling bitcoin a “fraud” and threatening to fire any JPMorgan employee caught trading the cryptocurrency. “It’s just not a real thing, eventually it will be closed,” he said. “It’s worth nothing, he added in a separate interview a week later.

Earlier this week, crypto startup Eidoo fired back at Dimon with a full-page advertisement in The Wall Street Journal. The ad, which was also posted on the news outlet’s website, said “Maybe Jamie will fire you. But you will be free to trade in the crypto world.”

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“Maybe Jamie will fire you,” Eido told Wall Street Journal readers, “but you’ll be free to trade in the crypto world.”

Below the fold, Eidoo included a QR code link to the smartphone app for its multicurrency wallet and hybrid exchange.

The ad did not come cheap. Full page ads in The Wall Street Journal can cost more than $350,000. However, PR stunt paid off.

“The response has been amazing,” an Eidoo spokesperson told CCN. “We have received more than 20,000 more downloads” since the ad ran.

That’s a more than 65% increase since Monday when the startup reported it had reached the 30,000 download mark. Moreover, the ad earned the startup coverage in numerous mainstream media outlets, including Business Insider and CNBC.

The ad also provided a shot in the arm to Eidoo’s initial coin offering (ICO), which is scheduled to end on October 16. At the time of writing, the Eidoo ICO has raised more than 81,700 ether, worth $26.5 million at current exchange rates.

“Jamie has not replied yet,” though, the Eidoo spokesperson added.

Featured image from Shutterstock.
Written by Crypto Coin News

 

Bitcoin use grows in Philippines, regulators flex muscle

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MANILA – The Bangko Sentral ng Pilipinas has released guidelines on cryptocurrencies including bitcoin, as transactions involving digital coins grew, an official said.

Cryptocurrency transactions have grown to $6 million daily from $2 million to $3 million a few years ago, BSP deputy director Melchor Plabasan told ANC’s On the Money.

“The main objective is to balance the interests of harnessing innovation, at the same time, managing attendant risks,” Plabasan said of the central bank circular released in February, the first of its kind in Asia.

Digital currencies can be used for money laundering but this can be countered by anti-money laundering controls and KYC or know-your-customer practices, said Plabasan.

Virtual wallets should be protected like physical wallets using multi-factor authentication and securing the email linked to the cryptocurrency account, he said.

“It’s like any other monetary instrument. There are risks but essentially, it can be managed. If you want something that is fast, near real-time and convenient then there’s the benefit of using (cryptocurrency),” Plabasan said.

Remittance costs can be reduced to 2-3 percent from 8-10 percent when coursed through firms that employ crytocurrencies, said Satoshi Citadel Industries chief community officer and co-founder Miguel Cuneta.

Satoshi Citadel, a financial technology company, uses blockchain, a cryptocurrency trading platform.

“I would liken it to the internet back in the 90s. Back then, the internet is so new people were afraid of it… Now, everybody has the internet, we don’t go online anymore, we live online,” he said.

Cuneta said the BSP was “very progressive,” involving stakeholders while drafting the cryptocurrency rules.

“We already knew what it was gonna contain. We are happy that it happened finally,” he said.

Written By News ABS – CBN

Why A Poker Site Will Start Accepting Over 60 Forms Of Cryptocurrencies

 

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Americas Cardroom (ACR) subsidiary Winning Poker Network (WPN) started using Bitcoin as a currency in 2014, which had been the largest endorsement of the cryptocurrency from an online poker room to that date. Fast forward to today, and ACR is about to start accepting over sixty different types of cryptocurrencies, making ACR the first poker site to take so many forms of digital payments.

The intention is that ACR will soon thereafter not only allow the vast number of cryptocurrencies to be deposited and used on its site, but also withdrawn in those cryptocurrencies as well. It seems like an important element to the equation, but is not promised in conjunction with the implementation of the new cryptocurrencies.

ACR’s spokesperson says that it has thus far received great feedback from its player base with regard to Bitcoin, as there is often faster processing time and smaller fees than with transactions that use traditional governmental-backed currencies.

“With such a positive response, it only made sense that we further expand our payment processing options,” says the spokesperson. “That being said, we don’t pretend to be cryptocurrency experts, and won’t recommend one coin over another.”

ACR will convert the amount of cryptocurrency into USD, which can be used to play poker, and it claims to be the only U.S.-facing site to offer it to consumers.

ACR warns that users take caution when converting money to cryptocurrencies for use on poker sites. It points to many Bitcoin poker sites that were available in 2014 that no longer exist.

There is also a recognition that the anonymity attached to use of cryptocurrencies can cause headaches for major corporations and businesses of all size no matter where the entity may be based. And then there are the cryptocurrency-based attacks, such as a DDoS attack, which ACR had to deal with in the recent past. Cyber terrorists sought a random and ACR responded with giving them the virtual finger.

“Crypto-sites come and go very quickly, especially the smaller ones, so it’s best to be careful out there,” states the ACR spokesperson.

In September, I covered how ACR has rapidly risen up the ranks on the online poker traffic site PokerScout.com, going from forty-fifth on the site roughly three years ago to seventh in the world, where it remains today. Its CEO Phil Nagy explained how the use of a particular management process called Agile allowed him to re-work the company from the top-down.

Now Nagy is looking to further revolutionize his company and the poker industry through the incorporation of a wide gamut of cryptocurrencies. Whether it will work is to be determined, but Nagy has noticed many other entrepreneurs testing the cryptocurrency waters and decided that if he was going to make a splash, he wanted to do it by entering the space through accepting a wide array of monies, beyond the popularized Bitcoin alone.

Written by Forbes.

 

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