Daily TL;DR - January 17th (Your One Stop Daily News)

DAILY TL;DR W/ CHESLINK
JANUARY 15TH – 19TH
January 17th

1. BTC NEWS
2. IN OTHER NEWS
3. DECENTRALIZED BANKING

MARKETCAP ANALYSIS

Recap from 11/20
Market Cap: $243,311,416,536
24h Vol: $7,403,167,283
BTC Dominance: 56.2%

As of 12/11
Market Cap: $462,879,608,891
24h Vol: $25,098,117,991
BTC Dominance: 61.7%

As of 12/31
Market Cap: $592,941,301,681
24h Vol: $33,207,433,786
BTC Dominance: 38.0%

As of 1/8
Market Cap: $743,509,110,252
24h Vol: $49,897,768,988
BTC Dominance: 34.2%

As of 1/15
Market Cap: $644,874,662,903
24h Vol: $38,996,461,258
BTC Dominance: 34.4%

As of 1/17
Market Cap: $547,619,005,202
24h Vol: $58,838,546,348
BTC Dominance: 34.9%
BTC NEWS

Bitcoin Manipulation Explain by Charlie Lee
• https://www.express.co.uk/finance/city/905222/bitcoin-price-news-latest-manipulation-cryptocurrency-surge-plummet-stock-exchange

Today's 4pm ET auction: 0.07 BTC (~986.0 USD) @ $13,411.490 (0.05% off mid).
This is extremely low volume. Cboe futures settlement is based on Gemini auction price. This is easily manipulated, so I would be wary of trading BTC near settlement time of 1/17 4pm ET. Note: CME futures settlement is based on an index of exchanges. Much harder to manipulate.

Let's say someone has a huge long Cboe futures position and he's underwater before settlement time of 1/17 4pm ET, it will be smart for him to buy BTC on Gemini auctions to push the auction price up, which will make him lose less or even make money on his futures trade.

On the flip side, someone shorting futures will do the opposite. So the auction price is going to be manipulated but we don't know which way and how much. This will affect Gemini spot exchange and also other exchanges due to arbitraging. Prices could be very volatile around then.

Bitcoin Crash Centered Around CBOE/CME Futures
http://www.cmegroup.com/trading/equity-index/us-index/bitcoin_product_calendar_futures.html

Bitcoin sell off for CME Futures on 1/31/2018 for January contract

http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures

Bitcoin sell off for CME Futures on 1/17/2018 for January contract

Marx and Bitcoin
• https://www.coindesk.com/understand-bitcoin-studied-karl-marx/
Marx and Satoshi approached their respective problems in a somewhat similar way. Marx advocated for a stateless system, where the worker controlled the means of production. Private property would be abandoned for the notion of communal property, and the state would "wither away," in the phrasing of Marx's frequent co-author Friedrich Engels.

Obviously, this withering did not happen in the countries where communists took over the state – the opposite happened, with horrific results.

Satoshi sought to remove financial intermediaries  –  the banks and credit card companies that controlled the world's flow of value. Instead, a peer-to-peer network would be established, with no central authority. The network would be carefully crafted so that no single actor could influence transactions wrongfully.

Satoshi failed to predict bitcoin's difficulty scaling to billions of transactions. The fees for buying and selling bitcoin, as well as the inability of the network to quickly process transactions, have changed its very nature. It is now used less as a payment method, and more as a store of digital wealth.
Bitcoin's main use cases today are as a speculative instrument (many traders are enticed by the large price swings) and as a "digital gold." That's not how Satoshi originally envisioned its adoption.

Marx, as noted above, similarly failed to anticipate how his own ideology could be used to manipulate and exploit populations. The idea of a stateless economy became, in practice, totalitarianism. Populists who claimed to have the workers' best interests at heart would succumb to the temptation of power. That does not mean that they knew or could control how those ideas would spawn to life. We can honor their gifts, while acknowledging that they do not have the full, perfect answer.

IN OTHER NEWS

Alibaba Cloud Mining - Fake News
• https://www.ccn.com/alibaba-quietly-launches-cryptocurrency-mining-platform-unconfirmed-local-report/
This has since been claimed to be fake news:

Chinese e-commerce and tech conglomerate Alibaba has quietly launched a cryptocurrency mining platform, according to an unconfirmed local media report.

According to Tencent News, Alibaba registered the platform, which is called “P2P Nodes,” on Oct. 10, 2017 with the relevant local authorities in Nanjing.
“Alibaba has recently launched a virtual currency mining platform “P2P node”, from the terms of the service agreement terms platform, the main operating platform is Alibaba East China Ltd.. It is reported that the company on October 10, 2017 has been completed registration, registered in Nanjing,” the report reads, according to a very rough translation.

It is not clear from the report whether the platform has officially begun registering users. The news was first brought to the attention of Western audiences by cnLedger, who said that, according to its translation of the report, sources say that Alibaba may eventually incorporate the mining operation into its e-commerce platform. A separate Tencent report indicates that the operation will be a “third-party” platform, presumably meaning that it will function as a cloud mining service that allows users to rent hashpower from the company.

Bitconnect Finally Dumps for Good
• https://cryptoinsider.21mil.com/bitconnect-ponzi-scheme-crash-team-cashes-out/
While most major cryptocurrencies have seen a correction of 20-30%, Bitconnect has crashed over 90%, going as low as $19 and falling entirely out of the Top 100 in Coinmarketcap rankings. Pending confirmation, it also appears that the Bitconnect team have begun to execute a classic ponzi scheme exit strategy.

Twitter pundits and financial advisers alike have also been calling the imminent crash of the Bitconnect house of cards for years. It appears the past 48 hour market correction was the gust of wind it took to knock the cards down and for the orchestrated Bitconnect exit scam to become glaringly obvious.

One fear in the cryptocurrency community is that the BitConnect crash will appear to justify “nocoiner” claims of a Bitcoin or cryptocurrency bubble, failing to differentiate between or intentionally conflating censorship resistant stores of value and ponzi schemes.

Stellar Lumens Hacked from BlackWallet
• https://www.equities.com/news/bitcoin-bounces-from-10-000-as-stellar-lumens-hack-plunges-all-crypto
The timing was impeccable, as the news started to circulate that the "Hack" was small in size at only $444,000 and all coins immediately reversed, whipsawing most day traders and confused market watchers.

Nikhilesh De wrote correctly on the Coinbase site on Jan 15, 2018, at 19:37 UTC, "An unidentified thief has reportedly stolen more than $400,000 in Stellar Lumens (XLM) after hacking the digital wallet provider BlackWallet." He credits his source saying, "According to cybersecurity reearcher Kevin Beaumont, the attacker hijacked BlackWallet’s domain name server (DNS) over the weekend, adding a piece of code which transferred any deposits of 20 or more lumens into another wallet." De went on to write, "Bleeping Computer also reported that the attacker secured nearly 670,000 lumens, worth about $444,000 at press time." Stellar Lumens are the ninth largest cryptocurrency by market cap.

Stratis Partners with Gluon for ICO
• https://stratisplatform.com/2018/01/17/stratis_partners_with_gluon/
We are thrilled and excited to announce that the Silicon Valley based corporation, Gluon, will be joining the Stratis family as one of our flagship verified ICOs.

We have developed a patent pending device and app which plugs into the vehicle and allows the user to not only monitor the vehicle outputs (fuel, mileage, range, temperature, etc.), but unlike any other device in the market, our device allows reprogramming of the actual ECU unit on a vehicle through the mobile app. Our ecommerce connectivity plays off of the monitoring aspect of the device. We want our customers to know exactly what issues their vehicle is facing, when a service is due and how much it will cost. Gluon will allow you to find service providers in your area based on your location and requirement. If you need a tire rotation, brake job, or a car wash, we can provide you with current, live offers and specials around you. Business owners can send targeted ads and advertisements for Gluon users seeking specific jobs or products such as an oil change for all Ford F-150 models or tire rotations for any car.

South Korean Military Not Allowed to Trade Crypto
• https://www.ccn.com/south-korea-military-blocks-access-cryptocurrency-trading/
As Korean financial officials ponder a wider clampdown on domestic cryptocurrency trading markets, the country’s military is already weighing up and enforcing its own measures to keep soldiers from trading cryptocurrencies like bitcoin, the Korea Times reports.

The cited ‘internal rules’ categorize cryptocurrency exchanges alongside online gambling and pornographic website which are also blocked under Korean military regulations. Further, the defense ministry is also working toward developing and introducing regulatory curbs against crypto trading, beyond blocking access to trading platforms.

MUFG Bank will Launch Exchange
• https://coindelite.com/news/japans-largest-bank-will-be-launching-its-own-cryptocurrency-exchange/
Since Bitcoin trading becomes the new mainstream in Japan, the top financial firms are stepping in to offer services to preserve their market share. MUFG, the largest bank in Japan, has planned to introduce its own exchange, a secured cryptocurrency, and bitcoin separated accounts which can be used by clients of other exchanges.

Mitsubishi UFJ Financial Group, Inc. (NYSE:MTU), the fourth largest bank in the world is planning to launch its own cryptocurrency exchange this financial year. The reports say that MUFG has already announced the Financial Services Agency (JFSA) regarding the decision of launching its own cryptocurrency.

Sidenote: Omise has raised over $20 million in VC money — the ICO was for its Omise Go (OMG) division — but this new financing is strategic in nature. The deal itself isn’t likely to be huge — Krungsri’s new fund is $30 million in total, while Omise is sitting on significant digital funds after its token appreciated beyond $1 billion market cap — but the investment is significant because the bank is part of the wider Mitsubishi UFJ Financial Group (MUFG), which is valued around $19 billion and present in 50 countries worldwide. Speculation leads some to believe OMG may be integrated in some way into the background of MUFG exchange.

Chinese Officials Call for Wider Crypto Ban
• https://www.coindesk.com/pboc-official-calls-for-wider-ban-on-chinese-crypto-trading-report/
A senior official at the People's Bank of China is reportedly calling for a wider ban on services related to cryptocurrency trading in the country.
Pan Gongsheng, vice governor of the central bank, said, to prevent market risk, the government would apply more strict regulation to end all cryptocurrency trading-related activities and services. The news comes via a Reuters report today, citing an internal memo reviewed by the news agency.

Weiss Ratings for Crypto
• https://ripplenews.tech/2018/01/17/us-rating-agency-will-issue-letter-grades-cryptocurrencies-next-week/
Weiss Ratings, the nation’s leading independent rating agency of financial institutions, will issue letter grades on cryptocurrencies, including Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, Monero, Bitcoin Gold and many others.

The new Weiss Cryptocurrency Ratings, to be released January 24, are the first by a financial rating agency. They are based on a groundbreaking model that analyzes thousands of data points on each coin’s technology, usage, and trading patterns.

Weiss Ratings, which began in 1971, rates 55,000 institutions and investments. Unlike Standard & Poor’s, Moody’s, Fitch and A.M. Best, Weiss never accepts compensation of any kind from the entities it rates. Its independence and accuracy have been noted by the U.S. Government Accountability Office (GAO), Barron‘s, The Wall Street Journal, and The New York Times, among others.

First Country with Own Crypto? Sweden.
• https://www.thelocal.se/20180115/sweden-predicted-to-become-first-country-with-own-cryptocurrency

The Riksbank revealed in November 2016 that it was researching the possibility of launching its own digital currency in the form of an "e-krona". Now, HSBC global economist James Pomeroy predicts Sweden will be the first country in the world to do so, and could launch within the next few years.

"I get the sense it's inevitable the Riksbank will do something, the question is what form does it take? Is it, as they put it, a value-based system, or is it a register-based system, which is like Blockchain. The Riksbank said the latter allows you to do more, but they don't know if the technology works yet. If they have to rush into doing something, it's more likely they'll do the value-based system, but if they take longer to do it and see how the technology progresses, you could see the register-based system, which is essentially a central bank cryptocurrency," Pomeroy explained.

Korean FSS Insider Trading
• http://news1.kr/articles/?3210443
• http://www.yonhapnews.co.kr/bulletin/2018/01/18/0200000000AKR20180118067800002.HTML?input=1195m

SEOUL, Feb. 18 (Yonhap) - Financial Supervisory Service employees have invested in virtual money, and the government has taken measures to sell the stocks just before the announcement of the countermeasures.

Exchanges and Banks Making… Bank
• http://kr.cointime.com/blockchain/11101.html
Last year, domestic banks' revenue from providing virtual accounts to the cryptographic exchange turned out to be 2.2 billion won. Of which one above and the Industrial Bank of Korea 2 above, the Agricultural Bank won. In the case of an exchange, a user receives a commission upon withdrawal of a fund, while a domestic large exchange receives a 1,000 won commission every time a withdrawal of less than 10 million won. Instead of offering a virtual account to the exchange, commercial banks have made a profit from receiving a commission of 200 to 300 won per deposit from the exchange.

In the case of the bank commission income on the cryptographic exchange, submitted by the Financial Supervisory Service to the Democratic Party of Korea, Park Yong-jin of the National Assembly Committee, six banks including Nonghyup Bank, Industrial Bank of Korea, Kookmin Bank, Shinhan Bank, Woori Bank, Last year, the commission revenue from the cryptographic exchange increased to 22.21 billion won, 36 times more than the previous year.

However, according to government measures, banks stopped issuing new virtual accounts and adding new members to existing virtual accounts. In addition, the company announced plans to convert existing traders into real names, which should result in less commission income from banks.

DECENTRALIZED BANKING

Crypterium
• https://crypterium.io/
Imagine the world where you can pay in any currency — fiat or crypto — without hesitation for exchange. Actually, in this world you don’t need plastic cards — cause your phone has NFC. And for every payment, you will get cash back that you can use to pay for anything. This is the world with Crypterium.

Also, the project will offer cryptocurrency acquiring solutions: integration with existing POS software and hardware, specialized solutions for accepting payments in e-commerce, retail, HoReCa, SMB and many others spheres, in-built marketing and loyalty services and online accounting.

Monaize
• https://monaize.com/#/uk/ico
Monaize allows users to benefit from a technology driven, partner-agnostic and personalized approach. At the core of their offering, a business current account with a Monaize Business Mastercard. However, by working with 3rd parties Monaize users also get access to service providers who can bring products like insurance, payment solutions and peer-to-peer finance.

AriseBank
• https://www.arisebank.com/
• https://medium.com/@michaelx777/bitshares-and-arise-team-up-the-worlds-first-decentralized-bank-and-exchange-join-forces-db5b81369aa7
• https://bitcoinexchangeguide.com/arisebank/
AriseBank is the first decentralized banking product ever created and features one of the largest cryptocurrency platforms ever built, with services like AriseID, aEx, aiExchanger, aTransfer, AriseCard, aTMs, aPocket, and aPay. aBank is completely decentralized, which means it’s never hosted in their data center and they never touch your money. It’s entirely hosted on the user’s desktop and mobile devices.
AriseBank is a start-up banking company that promises that you will have safe and quick transactions using its platform. The company promises a level of anonymity that you will not find in any traditional bank and the practicality of cryptocurrency banking features.

Using blockchain and decentralized services, the platform plans to work globally to transform the landscape of the cryptocurrency economy and make the cryptocurrency economy more prosperous.

The company already has global partners like VISA, Marqeta and has real offices in Dallas and Dubai. The motto of the company is that it is already more than just an idea.

BABB
• https://getbabb.com/
Businesses and developers can create applications to plug seamlessly into the BABB platform. From freelancers employed in the gig economy to global corporations, BABB’s borderless integrated payment systems can reduce the cost of doing business.

Anyone around the world will be able to open a UK bank account. All you need to do is download the BABB app, take a selfie and read a passphrase for your voice print. With this account, you can access an almost limitless choice of banking services at low cost.

Central banks can leverage BABB's technology to start implementing local digital currencies for the micro-economy in a regulated ecosystem. This will enable them to offer citizens access to international remittances and payment gateways.

Bankex
• https://bankex.com/en/
• https://cryptorated.com/ico-reviews/bankex/
BankEx defines itself as a “Bank-as-a-Service on blockchain”, which somewhat cryptically refers to a platform that enables banks to exchange products via smart contracts. The BankEx platform is based on its main product and development – the Proof-of-Asset (PoA) protocol. PoA compliant tokens are backed by actual, real-world assets, and provide liquidity for those assets. Unlike other specific asset-backed tokens, BankEx’s PoA protocol has a modular structure and allows tokenization of different types of assets.

Change Bank
• https://getchange.com/
• https://bitcoinexchangeguide.com/change-bank/
Change is a global bank based around cryptocurrency. The company is currently preparing for its ICO.

The goal of Change is to provide “a revolutionary service to people from all over the world.” They want to remove borders in the financial sector and ensure that every citizen can access alternative financial services, “finally ending the artificial monopoly created by local regulators and traditional banks.”

Global Crypto Bank
• https://globalbank.io/
• https://bitcoinexchangeguide.com/global-crypto-bank/
This company wants to find solutions to linking cryptocurrency to credit cards and ways to avoid fraud. This company plans to solve, on a global scale, all the problems related to the use and integration between fiat and cryptocurrencies in a decentralized way with low cost of services.

With the services promised by the Global Crypto Bank, a user could really integrate and use their currency independently of in which currency it would be. For this, the company aims to create a system that allows its users to use their bank cards in any ATMs or systems like MasterCard or Visa around the world.

The official website claims that the bank was founded “by experienced professionals and experts in the field of finances and blockchain technologies.” The website also mentions passive income opportunities, stating that investors who buy BANK tokens today can “get a significant interest from the company’s profit” in the future.