Binance Burns More Than 1.6 Million BNB Coins But Price Drops

The world’s largest cryptocurrency exchange by volume Binance had completed its 5th scheduled token burn. The price has reacted negatively so far, however, despite the reduction in BNB supply. 1,643,986 Binance Coins (BNB) Destroyed In an official release dated October 17, Binance announced that it has successfully completed its 5th quarter token burn, as per its whitepaper. Exactly 1,643,986 BNB were destroyed, which is the rough equivalent of $17 million. The move caught the attention

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Binance Increases Anti-Fraud Measures With Chainalysis Partnership

Binance is using Chainalysis’ AML/KYC product to grapple with multiple international jurisdictions’ regulations.

Crypto compliance provider and research firm Chainalysis announced it had partnered with exchange Binance in a press release Wednesday, Oct. 17, in order to improve its detection of suspicious transactions.

Binance, currently the world’s largest cryptocurrency exchange by volume, continues to expand into various international markets, being required to comply with each jurisdiction’s anti-money laundering (AML) and know-your-customer (KYC) rules.

Chainalysis eases this process, the firm claims, through the use of real-time monitoring to track the provenance of each transaction made on Binance’s platform.

The solution, known as know-your-transaction (KYT), saw its initial release in April, the press release notes.

“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,” Jonathan Levin, co-founder and COO of Chainalysis commented in the press release, adding:

“We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”

2018 has seen various well-known exchange platforms — including P2P ecosystem Localbitcoins — introduce additional compliance measures, some of which have jarred with cryptocurrency users that value anonymity. As well, in September, crypto exchange ShapeShift introduced a membership program that will gradually become mandatory and require the provision of “basic” personal information.

Explaining its own implementation of AML and KYC rules, Binance implied such measures were necessary to permit further expansion.

“Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve,” Binance CFO Wei Zhou said.

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Annual List of China’s Richest Includes Crypto Entrepreneurs

China’s Hurun Research Institute has released a catalogue of the richest individuals in the country, listing cryptocurrency entrepreneurs among others.

The annual Hurun China Rich List, a catalogue of individuals in the country with a net worth over 2 billion yuan ($209 million), has listed several crypto entrepreneurs among China’s financial elite, according to a release published Oct. 10.

The Hurun Research Institute released the 2018 Hurun China Rich List of the richest individuals in the country, with at least 13 entrepreneurs whose business is related to cryptocurrency mining and trading.

The ranking includes such industry players as Micree Zhan Ketuan, co-founder of computer chip manufacturer of and software firm Bitmain Technologies, in the top 100 richest people in China, with an estimated wealth of 29.5 billion yuan ($2.4 billion). The next richest crypto entrepreneur is Bitmain co-founder Wu Jihan, taking the 204th place, with a personal worth of 16.5 billion yuan ($2.3 billion).

Zhao Changpeng, the founder of the largest cryptocurrency exchange Binance, was ranked 230th, with an estimated wealth of 15 billion yuan ($2.1 billion). Zhao is followed by OKCoin crypto exchange founder Star Xu and founder of Huobi Li Lin.

Zhang Nangeng, founder of computer hardware manufacturer Canaan Creative, and Hu Dong, founder of Bitcoin (BTC) mining machine producer Ebang International Holdings are listed in the Hurun report as well.

The list also includes BTC whale and serial investor Li Xiaolai, with an estimated wealth of 7 billion yuan ($1 billion). Recently, Li said that he will no longer invest in future blockchain projects. “So, if you see ‘Li Xiaolai’ associated with any project (I have been associated with countless projects without my knowledge, 99% is not an exaggeration), just ignore it,” Li warned.

In recent months, Bitmain has been making headlines, claiming to have the participation of high-profile investors like Chinese tech conglomerate Tencent, investment firm DST Global, and Japan’s SoftBank, in the firm’s pre-IPO in August. The companies have subsequently denied their involvement. A Softbank official told Cointelegraph that “neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.”

Singapore-based investment company Temasek also officially denied its participation in Bitmain’s IPO, stating that “Temasek is not an investor in Bitmain, and has never had discussions with, or an investment in Bitmain. News reports about our involvement in their IPO are false.” DST Global also confirmed that it had “never invested” in Bitmain’s pre-IPO.

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Binance vs. DigiByte — The Gloves are Off

Binance vs. DigiByte - The Gloves are Off

Binance’s announcement yesterday that it would henceforth donate all listing fees to charity was met with derision from some. Notably DigiByte founder, Jared Tate, who questioned the legitimacy of Binance’s new internal ‘charity’ division. Binance CEO Changpeng Zhao was quick to respond. 😂 while we try to not publicly commenting on any coin, good or bad, some just don’t leave us much choice. I feel bad for the people who honestly tried to help with dgb

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Bitcoin Hovers Near 6,600, While Most Top Coins See Little Price Volatility

Crypto markets are seeing little price movement today, with only Ripple seeing a more substantial loss of close to 3% among top coins.

Friday, Oct. 5: cryptocurrencies are seeing little volatility over the past 24 hours to press time, with the majority of losses and gains of top coins capped within a 1 percent range on the day, as data from Coin360 shows.

Market visualization by Coin360

Market visualization by Coin360

Ripple (XRP) is the only outlier in the top ten coins, down a little over 3 percent on the day to trade at $0.52. The asset – which in September briefly outflanked Ethereum to seal the second spot ranking on CoinMarketCap listings – has had a shaky start to the month, and is currently trading almost 15 percent lower than its intra-week high at around $0.61 September 30.

On its rolling weekly chart, however, Ripple is a more modest 4.6 percent in the red. On the month, Ripple is up an impressive 57 percent.

Ripple 7-day price chart

Ripple 7-day price chart. Source: Cointelegraph Ripple Price Index

Bitcoin (BTC) is seeing negligible price change on the day, trading around $6,580 as of press time. Since trading above $6,600 at the start of its weekly chart, the top coin has seen two subsequent price corrections (Sept. 29 and Oct. 3).

Having briefly dipped below the $6,500 threshold during the latter of these, Bitcoin has reclaimed some ground and is back pushing a slightly higher price point.

On its weekly chart, Bitcoin is just over one percent in the red. Monthly losses are also mild at 2.5 percent.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Cointelegraph Bitcoin Price Index

Taking note of Bitcoin’s relative price stability recently, twitter personality and crypto trader WhalePanda tweeted today: “With everyone launching their own stablecoin Bitcoin decided to be the ultimate stablecoin.”

Ethereum (ETH) is down a marginal 0.15 percent on the day to trade at $222 at press time. After a steep plummet Sept. 29 to trade as low as $215, the leading altcoin briefly recovered to push above $235 Sept. 30. Throughout early October, Ethereum has seen renewed losses, although its lowest Oct. price point has been at around $218.

Ethereum’s market cap is around $22.8 billion, slightly widening its margin ahead of Ripple (XRP), which today has a market cap of $20.5 billion.

On the week, Ethereum is almost breaking even, up 0.6 percent; on the month, the altcoin is down around 2.8 percent.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: Cointelegraph Ethereum Price Index

The remaining top ten coins listed on CoinMarketCap are seeing red, almost all capped within a 1 percent range.

Bitcoin Cash (BCH) is down 1.14 percent at $511.51, whereas EOS (EOS) is down only 0.33 percent at $5.73. Just as fractionally, Dash (DASH) is up only 0.10 percent on the day to trade at 180.94.

In the context of the top twenty coins, 24-hour price fluctuations are similarly slight, though more mixed red and green. Crypto exchange Binance’s native token Binance Coin (BNB) is the only exception, up a strong 3.14 percent to trade at $10.61 at press time.

At the start of October, Binance Labs revealed it had made a multi-million dollar investment in decentralized digital content ecosystem Contentos.

After strong growth and volatile price action earlier this week, NEM (XEM) is up just a fraction of a percent on the day: the asset is trading at $0.105 as of press time.

NEM’s 7-day price chart

NEM’s 7-day price chart. Source: CoinMarketCap

Ethereum Classic (ETC) is down an above-average 1.19 percent, trading at $10.97 per coin at press time.

Total market capitalization of all cryptocurrencies is around $218.2 billion as of press time, after seeing an intra-week low Oct. 3 at around $214 billion.

7-day chart of the total market capitalization of all cryptocurrencies

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

Earlier today, reports emerged that the  U.S. Ivy League university Yale is said to have been one of the investors that helped to raise $400 million for a major new cryptocurrency-focused fund. The fund, dubbed ‘Paradigm,’ was reportedly created by Coinbase co-founder Fred Ehrsam, former Sequoia Capital partner Matt Huang, and Charles Noyes, formerly of stalwart crypto fund Pantera Capital.

In other industry news, the U.S. Securities and Exchange Commission (SEC) has outlined a time frame for reviewing proposed rule changes related to a series of applications to list and trade various Bitcoin (BTC) exchange-traded funds (ETFs). The review period affects nine separate ETFs that have been proposed by three different applicants, and the SEC has set a deadline of Oct. 26 for parties to file statements in support or rejection of the proposals.

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Binance Labs Invests ‘Millions’ in Decentralized Digital Content Monetization Startup

Blockchain tech incubator Binance Labs has made a “multi-million” dollar investment in a startup which aims to build a decentralized digital content ecosystem.

Binance Labs has reportedly invested millions of dollars in decentralized digital content ecosystem Contentos, according to a press release published October 1.

Founded by the largest cryptocurrency exchange Binance, Binance Labs is an initiative that seeks to support early-stage blockchain and digital currency projects and entrepreneurs by making direct investments, as well as mentoring and providing technical advice to projects.

Per the press release, Binance Labs made a “multi-million” dollar contribution to decentralized digital content ecosystem Contentos, but the exact amount of secured investment was not disclosed.

Within the investment project, Contentos will reportedly develop a decentralized ecosystem, which it says will offer transparency and monetization of content, without third-party censorship or removal of content. Ella Zhang, Head of Binance Labs, said:

“We are dedicated to identifying the real use cases to implement blockchain technologies. Through direct investments, collaborations with other industry partners, and the Labs incubation program, Binance Labs is committed to helping [firms] jump start their ideas and realize the full potential of blockchain technologies.”

In June, Binance Labs participated in an “Ask me Anything” (AMA) session on Reddit, where Zhang said that decentralization is “the core value of Bitcoin and blockchain,” stating that the company had launched a number of initiatives in this direction.

Earlier that month, Zhang suggested that if the Initial Coin Offering (ICO) bubble bursts, it would be a “good thing for the industry.” She said that current valuations are “high and unreasonable” and that truly valuable products will only come into fruition once the market evens out.

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Nevermind the Stagnating Market, Binance Is Pushing Further in Its Expansion

Starting an exchange in Singapore is an ambitious step — the most recent in a series of Binance’s summer activities.

Sept. 15 came with the announcement from the Binance co-founder and CEO Changpeng Zhao (also referred to as ‘CZ’): One of the largest global crypto exchanges will start testing a crypto-fiat exchange in Singapore.

While no further details have been specified, the crypto-fiat Singapore-based exchange will presumably support the local Singapore dollar. A closed beta testing was conducted on Sept. 18, after that CZ shared a hope the platform could start its work within months.

Starting an exchange in the third most favorable country in the world for Initial Coin Offerings (ICOs) is an ambitious step — the most recent in the series of activities Binance engaged in the last few months.

Conquest into Europe

Previously in September, Binance had signed a Memorandum of Understanding (MOU) with the Malta Stock Exchange’s fintech and digital asset subsidiary, MSX PLC. The main goal of the collaboration is the forthcoming trading platform. The official press release didn’t give away many details but highlighted that the future platform will benefit from the Malta Stock Exchange’s “26-year track record of operating as a regulated stock exchange.”

It’s worth noting that on July 19, Neufund — an equity fundraising platform on the blockchain — revealed it’s partnering with both MSX and Binance “to create a regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets.” The company’s press release stated that Neufund will become the first end-to-end primary issuance platform for security tokens and equity tokens, in particular. Binance CEO confirmed the announcement:

“We are glad to partner with Neufund over the pioneering idea to create a complete ecosystem for issuing and trading securities on blockchain. Today’s announcement marks a new chapter for Binance’s development, with the goal to tokenize traditional financial assets.”

This isn’t the first business experience in Malta for Binance. It has steadily been expanding its presence in a country whose pro-crypto regulatory stance has earned it the moniker of “Blockchain Island.” The first time the company announced the opening of its office in Malta was at the end of March, after receiving a warning letter from Japanese financial authorities about its unregistered status.

Earlier this summer, Changpeng Zhao told Cointelegraph in an exclusive interview that the exchange had opened a bank account on the island, paving the way for the introduction of fiat-crypto pairs. Company representatives subsequently hinted at the exchange’s plans to open a Malta-based platform to this end. Changpeng Zhao also praised the “active and transparent crypto regulations” on the island:

“Malta […] has become a global hub for blockchain technology through active and transparent crypto regulations. This partnership will allow Binance and MSX to host traditional financial assets on blockchain technology through security tokens.”  

But Malta isn’t the only tax haven that Binance took interest in. On Aug. 12, Binance LCX — a joint venture between Binance and Liechtenstein Cryptoassets Exchange (LCX) — announced the launch of a fiat-to-crypto exchange. The new trading platform will offer trading between Swiss francs (CHF) and euros (EUR) against major digital currencies pairs, subsequently adding more trading pairs following regulatory approvals.

The Binance team promised to provide and maintain the technology platform, while Binance LCX would take on customer support, legal requirements, due diligence, Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance and communication with the government. For that particular aim, Binance LCX immediately started the hiring process to build up a team of 10-15 people for its Liechtenstein office. The opening even got a commentary from the nation’s prime minister, Adrian Hasler:

“We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LCX and other blockchain companies to provide exceptional services here in Liechtenstein.”

Binance’s acquisition history

Binance broke into the media space in the first day of summer, revealing the plans to create a $1 billion cryptocurrency-based fund. The exchange decided to use its BNB tokens as an investment vehicle under the governance of its incubator spin-off Binance Labs. The fund stated it would onboard only significant heavyweights as partners, members requiring at least $100 million in asset management. As Ella Zhang, the head of Binance Labs, put it during an online conference:

“We do proper asset management. We like to lock in long-term projects. Investors and entrepreneurs are locked together. Non-believers do not enter.”

Further details were provided by the Binance Labs in August. The program will take on around eight-10 companies per batch for a 10-week period, and Binance Labs will hand out $500,000 to each program participant in exchange for a 10 percent stake in the business. Beyond money, Binance Labs is going to provide its projects mentoring, technical advice, access to the Binance network and support on non-technical, organization-building activities. The last deadline for applications expired on Sept. 14, and the maiden program will be held in San Francisco starting Oct. 9.

Meanwhile, on July 31, Binance made its first public acquisition. The company paid in a mixture of fiat money, Binance stocks and its own BNB token for Trust Wallet, a United States-based, open-source, anonymous and decentralized wallet that supports Ethereum (ETH) and over 20,000 different Ethereum-based tokens (ERC-20, ERC-223, and ERC-721).

CZ stressed that Trust Wallet is a strong team in terms of technical knowledge but requires assistance with their marketing strategy:

“They haven’t done much marketing, which is where we can help. They are strong technically but don’t like doing marketing, HR, etc. […] Now, merging with us, they don’t have to worry about money.”

Apart from boosting the service’s business development, Binance plans to list Trust Wallet as a default wallet on the highly-anticipated Binance decentralized exchange. Zhao said that Binance is considering further acquisitions. Trust Wallet founder Viktor Radchenko lauded the acquisition as an opportunity to return to focusing on developing the app and the technology.

Another major investment came in August, when Binance Labs — along with their rivals from OKEx and Huobi Capital — made a contribution to the $32 million funding round of a new stablecoin project out of South Korea. Dubbed Terra, the stablecoin is going to be integrated into the payment systems of the so-called Terra Alliance, a group of global ecommerce partners that includes, among others, South Korean ecommerce marketplace Ticket Monster (TMON), which boasts a considerable $4 billion in total sales.

Explaining the impetus behind its contribution, Binance Labs head Ella Zhang highlighted Terra’s existing network of partnering companies already waiting to use the token:

“While we see many stablecoins coming out, Terra’s journey is especially meaningful, as they are designing one of the few price-stable protocols with [an] existing, working and strong go-to-market strategy and usage.”

It began in Africa

Before Malta, Lichtenstein and Singapore was Uganda. In an exclusive interview with Cointelegraph on June 28, Changpeng Zhao shared the details about the new platform, Binance Uganda, the company’s first foray into fiat-crypto trading — supporting the Ugandan shilling, alongside major cryptocurrencies. It had been said that Binance Uganda would be an independent structure but with a “strong business cooperation” with the existing platform.

Highlighting that Binance is interested in expanding into Africa’s market “in general,” CZ said that work on the Uganda venture has been “progressing really fast,” thanks to strong support from government, regulators and the industry:

“Uganda [is a] really interesting situation, only 11 percent of the population has bank accounts. It’s both a challenge and an opportunity. So it may be easier to adopt cryptocurrency as a form of currency instead of trying to push for bank adoption. It’s an interesting experiment — Africa’s a big market, that’s why we’re there.”

At the recent Consensus Singapore Zhao explained the Binance focus towards the small markets, from such well known tax havens as Malta to the not so obvious African choice as Uganda:

We are willing to work with any government that wants to work with us. Smaller ones are much easier to work with, because you can talk to the prime ministers directly.

Company shows a good spirit, but NY’s Attorney General has some questions

Binance surely isn’t alone in its activities toward embarking into new jurisdictions. Huobi launched in Australia on July 5, with plans for its London-based operations to commence trading in Q3 and U.S.-based operations in the near future. Coinbase, meanwhile, is eyeing Japan and securing a U.S. banking license.

But the company definitely enjoys the optimistic results amid the market crisis and stagnation, which has already been compared to the dot-com bubble burst. Figures compiled by cryptocurrency industry newsletter producer Diar on Aug. 20 show that Binance’s volume increased 21 percent in July compared to June. The exchange currently occupies the fourth spot on CoinMarketCap, with about $1.2 billion in trades over the past 24 hours, as of press time.

In his interview on July 6, CZ shared his expectations of Binance’s profits to reach $1 billion in 2018. In an exclusive interview with Cointelegraph, CZ appeared unfazed by the falling trade volumes — both on Binance and other crypto exchanges — throughout 2018, noting that “markets always overreact” — both when things are going well, and when things cool off — and that he’s “seen this many times: five or six times, on a yearly cycle.”

We may even consider the market crisis a catalyst for the Binance activity. As CZ has put it, preparing for “the next uptick,” Binance is improving its systems to allow for more volume — 100 or 1000 times more than it supports at present. “I don’t know when it’s going to happen, but we’ve got to be ready for it.” Another company representative, freshly hired CFO Wei Zhou told Bloomberg that 300 people from 39 different countries, working for the Binance structures at the moment, will not be enough to support the firm’s ambitious plans for the near future.

At Consensus Singapore, CZ further explained that he wants the company to launch five to 10 fiat-to-crypto exchanges — two per continent — in one year. He also confirmed that Binance stays in a good financial health regardless of the market dip, with $200 million in profits during the first quarter of 2018 and $150 million in the second one.

But one important thing the loquacious Binance CEO didn’t comment on is the possible allegations from the New York State attorney general’s office. On Sept. 18, Attorney General Barbara Underwood released a report, which, among other things, states that Binance, Kraken and Gate.io could be in violation of a series of cryptocurrency-focused regulations and rules — and as such, they should be referred to the New York Department of Financial Services (NYDFS):

“As our report details, many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity and security of their exchanges. With this report, we hope to give New Yorkers the tools they need to make educated decisions on whether to entrust their money to a cryptocurrency platform and to help protect themselves against theft, fraud and abuse.”

The report represents the results of the “Virtual Markets Integrity Initiative” that was launched in April, when then-New York Attorney General Eric T. Schneiderman sent letters to 13 crypto exchanges, requesting information on their operations, internal controls and other key issues.

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Nailed It? Cryptocurrency Chart Exactly Follows ‘Bottom’ Call By Mike Novogratz

Serial investor and Bitcoin bull Mike Novogratz perfectly called the “bottom” in cryptocurrency, data reveals as markets trend upwards September 14. Novogratz: September 12 Was ‘Low’ As Bitcoinist reported Thursday, cryptocurrency market indices hit 80 percent versus all-time highs this week, outperforming the dotcom boom implosion of the early 2000s for the first time. At the time, Novogratz eyed the Bloomberg Galaxy Crypto Index chart, noting current levels mirrored those at which the ascent to

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Crypto Exchanges Turn to Dubious Tactics to Offset 80% Volume Plunge

With trading volumes a whopping 80% lower than their January peak, some of the biggest trading exchanges are implementing controversial practices to stay profitable.  Exchange Listing Fees:  Pay to Play From the ‘stick’ of listing fees to encouraging ‘carrots’, the crypto exchanges are finding ways to get their money. Exchanges such as Binance (the world’s largest by trading volume) and KuCoin, have implemented a system of variable listing fees. They both claim that the listing fee

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Binance Follows OKEx In Setting Up Malta Security Token Exchange

malta binance stock exchange

Cryptocurrency exchange Binance has signed a deal with the stock exchange of its new home Malta to host traditional assets using blockchain-based security tokens. Malta ‘Taking The Helm’ In a press release September 11, MSX, the fintech and digital asset subsidiary of the Malta Stock Exchange confirmed it had signed a memorandum of understanding (MoU) with Binance to launch the security tokens trading platform. “Malta is taking the helm of regulating blockchain technology and cultivating

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