Unbankd Newsletter: 10/01/2018 -
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<div style="color:#fff;font-family:Helvetica, Arial, sans-serif;font-size:15px;font-weight:bold;background-color:#60e1c1;padding-top:3px;padding-bottom:3px;padding-right:7px;padding-left:7px">SCANDAL</div>
<h1 style="font-family:Arial;font-size:23px;color:#000000;font-weight:bold;line-height:25px">Huobi Denies EOS Voter Collusion Following Leaked Documents</h1>
<img src="https://coinjournal.net/wp-content/uploads/2018/04/Huobi-696x480.jpg" width="100%" style="margin-bottom: 5px;margin-top: 5px" alt="102369471-187884864.jpg?v=1530908433"><br/>
<h4 style="font-family:arial;font-size:18px;color:#000000;margin-bottom:0px;font-weight:bold">You scratch my back...</h4>
<p style="font-family:arial;font-size:16px;line-height:20px">Last week, Twitter user <a style="color:#000;text-decoration:none;border-bottom:.1em solid #60e1c1" href="https://twitter.com/MapleLeafCap/status/1044958649188327429">@MapleLeafCap</a> released leaked documents that alleged the popular crypto exchange Huobi was colluding with other EOS block producers to do mutually beneficial actions.<br>
<br>Supposedly created by Huobi employee Shi Feifei, the documents revealed two different allegations:</p>
<ol style="font-family:arial;font-size:16px;line-height:20px">
<li>Huobi and many other block producers mutually vote for each other to cement their block producer position.<br>
<br>
</li>
<li>Huobi openly votes for a few block producer candidates in exchange for EOS returns.</li>
</ol>
<p style="font-family:arial;font-size:16px;line-height:20px">These arrangements allegedly earn Huobi 1,116 EOS per day, which is over $6400 at current market prices.</p>
<h4 style="font-family:arial;font-size:18px;color:#000000;margin-bottom:0px;font-weight:bold">This isn't surprising</h4>
<p style="font-family:arial;font-size:16px;line-height:20px">To some, collusion among EOS block producers doesn't come as a surprise at all. This is because the EOS blockchain has a controversial structure that critics believe is centralized.<br>
<br>EOS runs on a Delegated Proof Of Stake (DPOS) consensus method which means 21 block producers are chosen by the votes of EOS token holders. Once chosen, these 21 block producers then validate transactions that run through the network.<br>
<br>
On a decentralized blockchain this doesn't seem to be an issue, however, over 50% of EOS tokens are held by only 10 addresses. This means these top 10 addresses can control who becomes a block producer by placing far more votes than other addresses.<br>
<br>Commenting on the leak, Ethereum founder Vitalik Buterin shared his 'I told you so' on Twitter:</p>
<p style="font-family:arial;font-size:16px;background-color:#8CEFD6;padding-top:6px;padding-bottom:6px;padding-left:12px;padding-right:12px;text-align:center;line-height:20px">
<i style="color:#000">"Interesting! I mean, it was completely predictable and I did predict it, but I did not expect it to happen so thoroughly and so soon!”
</i>
</p>
<h4 style="font-family:arial;font-size:18px;color:#000000;margin-bottom:0px;font-weight:bold">Huobi and EOS community push back</h4>
<p style="font-family:arial;font-size:16px;line-height:20px">Yesterday, Huobi denied the series of allegations and claimed that it does not do any financial business with other EOS block producers.<br>
<br>Though Huobi has yet to confirm or deny the authenticity of the leaked documents, some EOS enthusiasts believe that even if the documents are real, it doesn't matter because Block.one hasn't even started voting.<br>
<br>Meanwhile, other EOS supporters are calling the leaked documents FUD entirely and say that if collusion were to happen, the price of the token would have to rise significantly so block producers like Huobi can maintain the control they want.<br>
<br>At this time, an investigation is underway to understand the situation further.
</p>
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<h1 style="font-family:Arial;font-size:23px;color:#000000;margin-bottom:0px;font-weight:bold;line-height:25px">New Stablecoins are Entering the Market, But Tether Still Dominates</h1>
<h4 style="font-family:arial;font-size:18px;color:#000000;margin-bottom:0px;font-weight:bold">A look at stablecoins’ market share</h4>
<p style="font-family:arial;font-size:16px;line-height:20px;margin-top:10px">According to a report from digital assets tech firm Blockchain Luxembourg SA, Tether accounts for 98% of stablecoins’ trading volume and 93% of the total market value of all stablecoins. Although, stablecoins only comprise 1.5% of the total market value of all cryptocurrencies.<br>
<br>Here is a list of the number of Tier-1 exchanges the biggest stablecoins are listed on:<br>
</p>
<ol style="font-family:arial;font-size:16px;line-height:20px;margin-top:10px">
<li>Tether - 6</li>
<li>TrueUSD - 5</li>
<li>SteemDollar - 4</li>
<li>NuBits - 2</li>
<li>BitBay - 2</li>
<li>Gemini - 2</li>
<li>Paxos - 2</li>
</ol>
<h4 style="font-family:arial;font-size:18px;color:#000000;margin-bottom:0px;font-weight:bold">Stablecoins and competition</h4>
<p style="font-family:arial;font-size:16px;line-height:20px;margin-top:10px">Competition is the backbone of economics. As it is in almost every industry, competition is good for stablecoins. With competition, the consumer/investor is the winner.<br>
<br>New stablecoins are flooding into the crypto market. Tether still dominates because of its first mover advantage. Don’t be surprised if Tether’s massive lead begins to shrink.<br>
<br>Tether’s issues have been well documented and are probably the inspiration of these new stablecoins that are being created. Competition will force Tether and all players to become more transparent, which is the most important feature of a stablecoin.
</p>
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<br /><center><hr/><em>Posted from my blog with <a href='https://wordpress.org/plugins/steempress/'>SteemPress</a> : https://whalereports.com/unbankd-newsletter-10-01-2018/ </em><hr/></center>
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