Ep 229: Bitcoin Gold Flop, Bitfinex Wash Trading, Singapore Won’t Regulate Crypto

All that glitters isn’t Bitcoin Gold. Wash trading helps explain fishy smell at Bitfinex. Putin wants crypto regulations. Singapore takes wait and see approach. Tezos founders fight for control of third most successful ICO in history.

We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren, Pedro and JJ!

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Traditional Financial Markets Cryptocurrency Markets
Gold $1,277 Bitcoin (BTC) $5,573
Silver $16.92 Ethereum (ETH) $299
Oil $52.22 DASH $289
Dow Jones 23,329 points Litecoin (LTC) $55.44
30Y UST Yield 2.946% Bitcoin Cash (BCH) $330

Bitcoin Gold — Even Worse Than Expected?

The Bitcoin Gold (BTG) fork happened on Tuesday — we discussed whether it was a viable chain or a cash grab (and leaned toward the latter) on Neocash Radio cryptocurrency podcast ep227. We have more information this week, and BTG now appears even more questionable than before.

Here are some examples of how major exchanges and wallets are dealing with BTG:

Coinbase: “At this time, Coinbase cannot support bitcoin gold because its developers have not made the code available to the public for review — This is a major security risk.”

The company says it may decide to provide distribution support for the split tokens at a later date: “If Coinbase were to enable support for bitcoin gold at a future date, customers would be able to withdraw bitcoin gold associated with their Coinbase/GDAX bitcoin balances at the time of the bitcoin gold fork.”

Satoshi Labs (Trezor): “Once there is a safe way, we will let you know.”

Ledger: “Ledger will add immediate support for the bitcoin gold fork if/when the code is available, with replay protection, and if it’s successful/valid — Bitcoin Gold will fork on block 491407 – just hold your BTC in a Legacy or Segwit address before. Nothing else [is] necessary.”

Coinomi says it will be supporting the bitcoin gold tokens. After the fork when the network goes live on November 1, split tokens will be credited to Coinomi wallet users.

Bittrex says it will be crediting users with bitcoin gold if they held bitcoin on the exchange prior to block 491,407 occurring approximately on October 24, 3 am PT (10 am UTC). However, the exchange may not list the forked token within the platform’s markets, as the business has concerns.

Bitfinex Wash Trading Appears to Explain Bitcoin Price Manipulation

For months now we have been watching the activity going on at Bitfinex and to call it fishy would be an understatement. Bitfinex has openly taken USD and Bitcoin from their customers. They have blatantly inflated the supply of Tethers without a shred of proof of asset backing or a method by which one could exchange the Tether for the backing asset. The Bitfinex management is also running crypto hedge funds and trading on Bitfinex — an ethical quagmire given the amount of private information they have access to.

Even after all that, they still manage to have this massive ‘reported’ trade volume. I’ve been scratching my head as to how this could be. By massive I mean the most of any exchange in the world. Bitfinex often reports twice as much bitcoin volume as any other exchange. This is not logical given their horrible reputation. Thanks to the efforts of Bitfinex’d, we want to point out that Bitfinex allows wash trading and self-funding shorts. Wash trading is when the exchange engine matches one of your bids with one of your asks. It’s illegal for obvious reasons. This practice is one of many reasons Bitfinex will have banking troubles. In fact, I would vote the staff at Bitfinex the most likely to spend time in jail given the depth of their fraud and malfeasance.

Wash trading, USDTether vaporTokens, spoofing, insider trading, what’s next? I am calling on coinmarketcap.com and other crypto market watch sites to delist bitfinex, Tethers and distance yourself from the toxic company.

Related listening: Scam Warnings About Bitfinex, Tether, and Empire Card—Neocash Radio cryptocurrency podcast Ep219

Vladimir Putin Requests Legislation On ICOs and Cryptocurrency

In an October 21st press release, Russian President Vladimir Putin instructed his government to begin working on legislation that would regulate the blockchain industry.

Dmitry Medvedev, Russia’s Prime Minister, along with Elvira Nabiullina, the head of the central bank, are tasked with having certain changes to Russia’s legal code completed by July 1.  These include official definitions of digital tools and assets, smart contracts, cryptocurrency, distributed ledger technology, and “digital letters of credit.”  There will also need to be legislation for how crypto miners would be registered and taxed as well as regulation of Initial Coin Offerings so they are more in line with the sale of traditional securities.

There is a deadline of December 20, 2016 set by Putin for Russia’s government and central bank to define proposals for a Bank of Russia backed sandbox where “innovative financial technologies, products and services” could be used to help develop any additional required regulations.

Lastly, Putin requested the government and central bank to create “the formation of a single payment space for the member states of the Eurasian Economic Union” using “new financial technologies” by March 30, 2018.

This latest news from Russia seems to confirm what we at Neocash Radio have been observing coming out of Russia — that blockchain, cryptocurrency, and fintech are looked favorably by Putin and his government, provided they are in control and this space is heavily regulated.

Did you know? Neocash Radio recently launched a Russian-language cryptocurrency podcast! Listen in to archive episodes here!

Singapore Won’t Regulate Cryptocurrencies

Singapore is not planning to regulate cryptocurrencies, but instead will remain alert to money laundering according to the country’s central bank.

Monetary Authority of Singapore managing director Ravi Menon was quoted as saying “As of now I see no basis for wanting to regulate cryptocurrencies” and that the central bank’s focus should be to “look at the activities surrounding the cryptocurrency and asking ourselves what kinds of risks they pose, which risks wuold require a regulatory response, and then proceed from there”.

On the topic of ICO’s, if they include the promise of a dividend or other economic benefits, they can resemble regular securities and thus be covered by Singapore’s Securities and Futures Act.

So it appears except for securities, Singapore is taking a hands off & monitor approach with cryptocurrencies.

Tezos Founders Fight For Control Of Company

The fate of over $400 million in not-yet-issued “Tezzies” hangs in the balance as Tezos cofounders Arthur and Kathleen Breitman battle against Johann Gevers for control of the company. Gevers worked with the couple to establish the company in Switzerland and promoted the ICO, which was, three months ago, the most successful ICO in history. (It has since been superseded by EOS and Filecoin.)

Reuters published a detailed investigative report into the debacle.

Unsurprisingly, a class action lawsuit is already in the works, and the futures price of Tezzies has tumbled.

NeoWare Apparel NeoWare Apparel aims to provide you with the finest crypto-themed clothing and accessories! Is there a certain coin or token you want to see designs for? Email us at neowareapparel@gmail.com

An Important Disclaimer

We would like to remind you that any content on the Neocash Radio podcast and/or website should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest/gamble more than you are willing to lose and always safeguard any digital currencies you own by keeping them in a wallet whose private keys you control.

Contact Us
JJ – jj@neocashradio.com
Co-Founder, Producer, Managing Director

Darren – Darren@neocashradio.com
Co-Founder, Technical Writer

Pedro – pedro@neocashradio.com
Ethereum and Crypto-mining Expert

Randy – randy@neocashradio.com
Former Co-host and Cool Dude

Tips Appreciated!

BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
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BCH Address: 173ADKUvvRcSmb9tnKiYAMQAoB6RhsgQQd

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