Ep209: ICO Elevator Caps Because Moar, Crypto Trading Common Sense, Ethereum and China

In this episode we talk at length about cryptocurrency trading and the perils that it could involve. Our show should not be considered investment advice to buy or sell or hold anything. The coming sea change will include a lot of success and at least some failure. Using the term “Investing” is a misnomer. Contributing to blockchain start-ups and projects ought to be better described as “Gambling”. We also talk about: The Brave Browser’s BAT token sells out in the space of 3 Ethereum blocks raising $36 Million in 24 seconds. Elevator Caps seem to be the new trend with token sales. The difference between Initial Coin Offering and Token Generation Event. This website keeps track of the success of tokens and coins against ETH and BTC. The Status Network might just be the glue that bonds the ethereum users, dapps, and more. Two massive chinese Bitcoin exchanges Huobi and OKCoin add Ethereum trading. The Ethereum Network has three times as many nodes as the Bitcoin network.

All this and more on the Neocash Radio podcast, episode 209 — Wednesday, May 31th, 2017!

Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from JJ, Darren, and Pedro!


Stream this podcast episode:

or Direct Download this episode as an MP3 – Neocash Radio cryptocurrency podcast ep209


Tune in to Neocash Radio every Wednesday night and
RETWEET ALL THE THINGS @NeocashRadio!

Subscribe to the Neocash Radio podcast
on iTunes/ Soundcloud/ Stitcher/ YouTube/ Google Play & iHeartRadio!
We’re also on Tunein, Player.FM, Overcast.FM, Podcast Addict, Blubrry, LBRY and more!


ICO Madness as BAT Sells out in 24 Seconds

We talked about Brave Browser’s recent switch from BTC to ETH on Ep200, and we first discussed Brave Browser on Ep167 way back in August!

Most notably was the incredibly small number of participants. The Token Generation Event raised $36 Million in 3 Ethereum blocks and blocks were found fast: just 24 seconds! The entire 1 Billion tokens are consolidated among just 190 addresses.

Leading up to the TGE there were some on reddit upset at the numerous last minute changes. Over a month ago the BAT team announced the fundraising goal of $15 Million with a cap of 1 Billion tokens. The goal was changed to $24 Million 9 days out with the reason being, ‘why not moar?’. Two days prior to the sale date the contract was deployed with an exchange rate based off 1 ETH = $153 of 1 ETH for 6400 BAT. In the end they raised $36 Million worth of ETH and presumably rising, more than 2 times their original goal.

This trend of token sales with elevator caps has seen Mystereum raise their cap from 10 to 14 million and sell out in 40 minutes. Storj raise their cap just prior to the token sale, Status had initially planned a cap of $10 million but that has changed to a $12 Million soft cap with hidden hard caps?

One thing is for certain, as overall market cap of cryptocurrencies crests $80 Billion there is a lot of funding available for a myriad of blockchain-based ventures. Especially if you can hype and have friends in high places.


I just want to take a moment and point out that an ICO is the term used for the launch of a new blockchain. The launch of a new token is actually termed a Token Generation Event. These are distinctly different events. Initial Coin Offerings refer to new blockchains spawning – these sort of events often require more resources and commitment. Token Generation Events often the creation of a mass of tokens that will be used on top of an existing and often well-established blockchain. The case of the tokens we talked about earlier in the show, Ethereum is the blockchain they are on.


ICO vs ETH

Some of the ICO/TGE are looked at as get rich quick schemes. In fact, a chunk of investors buy big into the initial offering only to sell it for double or more as soon as it is on the market. This site looks at the historic data and compares Bitcoin and Ether to dozens of other blockchains and tokens.


The Status Network

A ‘socio-economic network’ based off of a private messaging platform. The network runs on a Mobile OS built for Ethereum and the coming Token Sale will sell off the Status Network Token starting June 17th.

SNT will be used to power the Status Client, including:

  • Governance of the Status Client
  • A Decentralized Push Notification Market
  • Community Curation of Content, powered by UserFeeds.io
  • Fiat-to-crypto ‘Teller Network’
  • DApp Directory
  • Sticker Market
  • Access to new features such as Tribute to Talk
  • Powering the Status User Acquisition Engine

The Status network aims to connect users, apps, market functions and more all through a discrete messaging service.


Chinese Digital Currency Exchanges Huobi And OKCoin To List Ether

ethnews.com

Starting May 31, Ether will be offered on both the Huobi and OKCoin exchanges in China.

The Huobi digital currency exchange has announced that Ether will be available for trading on its platform starting May 31, 2017, at 12:00 (GMT+8). The first of China’s “Big 3” digital currency exchanges to offer Ether, Huobi’s announcement on May 27 could potentially have already contributed to the recent spike in the price of Ether, which saw a same day recovery of 40 percent. Per Huobi’s official twitter account, “There are many aspects of Ethereum that could outperform bitcoin, such as scalability, cost, [and] speed.”

OKCoin, Huobi’s main rival, will begin offering Ether at 22:00 (GMT+8) on May 31 as well; while Ether trading will officially commence on June 1. Last year’s decision by China’s Big 3 (BTCC being the third) to forgo listing Ether prompted many Chinese investors to use workaround trading strategies, such as buying bitcoin and using ShapeShift or other exchanges to convert it into Ether. If true, this type of buying might have created an artificial relationship between bitcoin and Ether which could potentially dissolve now that Chinese consumers can purchase Ether directly.

GDAX is a US based exchange that has recently added EUR/ETH and EUR/LTC pairs


Ethereum now has three times more nodes than Bitcoin

Trustnodes.com

The ethereum network has nearly 25,000 reachable nodes, spread across the globe, less than two years after its launch, while bitcoin currently has only around 7,000 nodes that verify the network.

Scan to Donate Bitcoin
Like this? Donate Bitcoin to at:
Bitcoin 1FBrMCMX2Gme6GaLn94rE9odudBJPTpJFe
Donate

Storing Ethereum-based tokens (Golem, REP, etc.) on a hardware wallet

If you’ve been loyally listening to the Neocash Radio podcast over the past four years, you’ve undoubtedly heard us talking about using hardware wallets for cryptocurrency security. Near the end of Wednesday’s podcast, Randy made mention of some tools that Pedro showed him which allow users to hold Ethereum-based tokens—like Golem Network Tokens (GNT), Augur (REP) tokens, SingularDTV (SNGLS) tokens, etc.—on a hardware wallet. Randy said he’d make a post about it for the blog later in the week and well, here we are!

Comparing Bitcoin hardware wallets: KeepKey, Ledger Nano S, Trezor. Generating offline wallets for DASH, Ethereum, Bitcoin, Zcash, and more. Secure cold storage with plausible deniability.

KeepKey hardware wallet for BTC, ETH, DASH, and other cryptocurrencies

Trezor, KeepKey, and Ledger are the most popular brands of hardware wallets currently.

Tokens built to utilize the Ethereum blockchain conform to a “token standard” called ERC20; this standard ensures that wallet apps, exchanges, etc. can accept and interact with any ERC20 token, all without having to code unique integrations for each new token system.

Some of these tokens can be purchased using ShapeShift.io or OpenLedger; others can be found at decentralized exchanges like cryptoderivatives.market. When you purchase these tokens, a smart contract grants ownership of them to your Ethereum address. But as of the writing of this post, the wallet apps provided by the hardware wallet manufacturers don’t display token balances as part of your ETH holdings. Continue reading

Scan to Donate Bitcoin
Like this? Donate Bitcoin to at:
Bitcoin 1FBrMCMX2Gme6GaLn94rE9odudBJPTpJFe
Donate

So Bitcoin Might Fork. Here’s What to Expect…

It is with some lament that I write this. If everyone agreed on a path forward, then there would be no need for this post, but here we are. There is a strong likelihood that we will need to know what will happen if Bitcoin forks (again). There is a chance that the protocol of Bitcoin will fork, which will cause a chain fork as well. (I discussed hard forks & soft forks from my perspective in a previous post.)

Some Bitcoin miners are signaling that they would accept one of two competing Bitcoin protocol changes: one protocol is Bitcoin Unlimited (BU), which would increase the maximum transactions that Bitcoin can process by 100%. The other protocol, called Segregated Witness (SegWit), is expected to increase this maximum by 70%. As of this writing, 35.9% of blocks are signaling for Bitcoin Unlimited while 26.8% are signaling for SegWit.

Bitcoin miners signaling for Bitcoin Unlimited and SegWit blocks

Bitcoin blocks found by miners signaling Bitcoin Unlimited support vs. miners signalining SegWit support

Bitcoin Unlimited vs. SegWit: Abstractly, what is happening?

Let’s make a hypothetical situation where the proportion of Bitcoin Unlimited to SegWit votes stays the same, but is extrapolated out so that ALL Bitcoin miners MUST choose either Bitcoin Unlimited or SegWit. That would mean around 55% of miners would be supporting Bitcoin Unlimited and 45% of miners would be supporting SegWit. (There is an incentive to go with the “winning” majority chain, so this division of hashing power could be even more severe at the time of a hard fork.)

If Bitcoin Unlimited activated and a block over 1MB was mined, then the SegWit part of the network would reject this block and build off the previous block. With a drastic drop in hashing power but no change in the difficulty target, it would take the Bitcoin network longer to find the winning solution that confirms a new block to the blockchain. With our hypothetical numbers, blocks for Bitcoin Unlimited would come out approximately every 18.2 minutes and SegWit blocks would come out approximately every 22.2 minutes. Any transaction capacity increase promised by Bitcoin Unlimited and SegWit would be delayed until the difficulty target adjustment shakes out. As more blocks were found, the difficulty of each chain would adjust and after about a month (a little longer for SegWit), the 10-minute block time target would be restored.

How would this hard fork affect Bitcoin users?

A Bitcoin user with coins before the hard fork would then be considered to have a positive balance on both ledgers/blockchains after the hard fork. (The Ethereum blockchain forked after last year’s DAO debacle, yielding ETH tokens and ETC tokens (Ethereum Classic) for users who owned ETH before the fork.) But without taking care, a user could intend to spend coins on one chain and unintentionally spend on both chains; this is known as a replay attack, though it’s really not an attack if it’s done unintentionally. Maybe that should be called a replay error so as to not be confused with an intentional replay attack meant to defraud.

How does one guard against a replay attack after a hard fork?

Continue reading

Scan to Donate Bitcoin
Like this? Donate Bitcoin to at:
Bitcoin 1FBrMCMX2Gme6GaLn94rE9odudBJPTpJFe
Donate

Episode 171 – Steemit Skepticism, Federal Reserve Interest, and BlockStream Won…

Here are the TL;DR headlines from today’s show:

The Federal Reserve is playing with interest rates. Steemit introduces promoted content and we are looking for a wallet to HLOD Steem currencies off the platform… is Steemit decentralized? Civil asset forfeiture is too hard to give up for Police in New Mexico. Lots of Ethereum news, you should give a listen! Imagine if Ethereum and Steemit had a baby blockchain, you may end up with Synereo. One prominent Bitcoin Miner proclaims Blocksteam has won the Block-size debate and we lament the fall of Bitcoin. More details on Monero.

All this and more here on Neocash Radio episode 171! Recorded August 31st, 2016 in Manchester, NH!

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 JJ, Darren, and Randy!

Stream this episode of Neocash Radio here: 

Direct Download – Neocash Radio episode 171 (MP3)
Subscribe to the Neocash Radio podcast on iTunes!

Continue reading

Scan to Donate Bitcoin
Like this? Donate Bitcoin to at:
Bitcoin 1FBrMCMX2Gme6GaLn94rE9odudBJPTpJFe
Donate

Episode 76 – Get Surgery With Bitcoin and Gold in Oklahoma

Jon Matonis is stepping down from the Bitcoin Foundation. The 1970 US Bank Secret Act is declared obsolete. Crypto Passports could offer more online identity solutions. BTC Guild was set to shutdown in three months but now may be sold instead. Blockchain.info raises $30.5 million. FinCEN declares bitcoin payment processors and exchanges as “money-transmitters”. Amanda writes about buying surgery with bitcoin and gold. Mattheus writes about the bitcoin scene in New Hampshire. Home loan applications are the lowest since February.



Direct Download

Scan to Donate Bitcoin
Like this? Donate Bitcoin to at:
Bitcoin 1FBrMCMX2Gme6GaLn94rE9odudBJPTpJFe
Donate