Blockchain and Cryptocurrency News Roundup

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  • August 31, 2020
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31 August 2020.

Jump into a short summary of some of the biggest headlines in Crypto this week. Police search of South Korean Coinbit Crypto Exchange finds 99% trade volume manipulation, Filecoin tests pave way for Ethereum fee restructure, Fidelity’s Chief Strategist starts Bitcoin index fund and Fidelity Digital Assets validates model that predicts Bitcoin price at $1 million.

Police search of South Korean Coinbit Crypto Exchange finds 99% trade volume manipulation

Coinbit, the third-largest crypto exchange in South Korea, has found itself in trouble with the authorities for alleged arbitrage manipulation of Bitcoin (BTC), Ripple (XRP), and Ethereum (Eth) transaction volume.
The Seoul Metropolitan Police Agency alleges that Coinbit has gained unfair income to the tune of 100 billion won, approximately $84 million following 99% trade volume deceit of cryptocurrencies like Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC). Following an insider’s tipoff about the malicious ongoings at Coinbit in May, the police sprung into action by confiscating hardware and searching Coinbit’s properties, including the exchange headquarters office. The authorities revealed that they gathered concrete evidence against Coinbit’s owner Choi Mo and the management team for manipulating the market price and inflating trade volume using a tactic called bicycle transactions, whereby multiple ghost accounts were used in buying and selling coins inside the exchange. This deception was unraveled after 99% of the total sales emerged to be transactions without withdrawal and deposit details.

Blockchain.news

Filecoin tests to pave way for Ethereum fee restructure

Filecoin has been testing EIP 1559 which aims to tackle high network fees on Ethereum.A long anticipated Ethereum Improvement Proposal (EIP) which aims to tackle high network fees is currently being tested on the Filecoin network. A proposal to change Ethereum’s fee structure has been in the pipeline since first being suggested in April 2019. A surge in network fees in recent months has brought the spotlight back on to EIP 1559, and it is being trialled on the digital storage platform Filecoin.
Ethereum co-founder, Vitalik Buterin, tweeted an update as more information and research is piled into the proposed upgrade.Filecoin software engineer, Jeromy Johnson, said the EIP code ‘appears to be doing its job’ on an ongoing test on the network. He added that there had been a couple of spikes in “base fee”, which is the new network fee architecture, but there was very little delay in messages making it into the chain. Filecoin is a decentralized storage platform that is in the testnet phase. It has targeted September for the mainnet launch according to its August progress update. Sharing technology with Ethereum makes it a good testbed for EIP 1559.

Cointelegraph

Fidelity’s Chief Strategist starts Bitcoin index fund

Fidelity Investments’ chief strategist is heading a new bitcoin index fund that appears to be Wall Street’s latest play for high-dollar institutional crypto bets.”Wise Origin Bitcoin Index Fund I, LP” has a $100,000 minimum buy-in and a high-ranking executive officer to boot: Peter Jubber, head of strategy and planning for the increasingly crypto-friendly investments giant Fidelity. Disclosed in a Wednesday morning filing with the Securities and Exchange Commission, the fund is the latest example of Wall Street veterans warming up to bitcoin. Fidelity, one of the largest mutual fund firms in the U.S., is also leading the Street in bitcoin research and services. Wise Origin links back to Fidelity Investments via Jubber and Fidelity’s brokerage service and distribution subsidiaries, both of which are set to receive sales compensation from the new fund. It also shares a Boston office building with Fidelity. While it is not known how the fund will approach bitcoin investing, Jubber waxed bullish on blockchain in a 2017 podcast sponsored by Fidelity. At the time he said his firm had sketched out 10 years of potentialities for the institution-disrupting tech.

Coindesk

Fidelity Digital Assets validates model that predicts Bitcoin price at $1 million

Asset management firm, Fidelity Digital Assets, has recently published a report analyzing the stock-to-flow valuation model created by Plan B. The report was created as a way to examine the reasons that attract interest in Bitcoin as an investment. As Fidelity Digital Assets notes Bitcoin is increasingly integrated in traditional investment portfolios.
In this sense, the report points out that Bitcoin has two characteristics that make it a store of value. Firstly, Bitcoin is a scarce economic good and therefore in the long run a means of protection against “real loss of value”. This is now emerging more strongly than ever as companies like MicroStrategy migrate to Bitcoin to protect themselves against the Federal Reserve’s inflationary policies. Another feature that makes Bitcoin a store of value is that its scarcity at the time of its inception was built into the protocol and cannot be changed. Moreover, Bitcoin’s monetary policy is enforced in a decentralized manner, transactions are checked decentrally by network users, so there is no central power that can change the fundamental design.

CryptoNewsFlash

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