Stellar's Jed McCaleb: Crypto Doesn't Need More Regulation ...

A Closer Look at Ripple's Distribution of XRP

I consider myself to be an informed member of the XRP community. I have a Twitter feed of all the prominent personalities/researchers to keep tabs on the news. I watch the metrics on utility-scan.com daily and even wrote a calculator to help understand what ODL is doing over time. I regularly check in on global metrics like volume, wallet openings, and the distribution of XRP within wallets.
Up until recently, if you asked me to explain how XRP is distributed out to the public, I would point you to two resources. The first is an article on XRPArcade explaining how Jed McCaleb's XRP sales are structured (not the topic of this post). The other place would be the XRP Markets Reports provided quarterly by Ripple. There you would understand that for the past year Ripple has increasingly slowed the sales of XRP and only is selling in small amounts to facilitate liquidity in markets. Based on this data, I've seen discussions on /cryptocurrency and elsewhere claiming that XRP's inflation rate is lower than Bitcoins and is near 0. Based on publicly provided data I've realized that this is not the case. XRP's distribution rate is very different than the impression painted by the XRP Markets Reports.
TLDR; Ripple is trying to paint a narrative that very little XRP is entering the market. In reality sales of XRP are very low, but XRP entering circulation remains much higher from an inflationary perspective and that rate has remained relatively unchanged from 2016 onward.
Before I dive into the data, I'd like to take a brief pause and state that in no way am I writing this to be FUD. Clear and accurate data is extremely important to me. Much of the recent community conversation has revolved around hopium and dot connecting that is unverified. It's a public ledger, but most people don't take the time to track the numbers. I'm hoping to shed more light on these important factors since there is no doubt that XRP's rate of distribution can effect the price. Ok, soapbox over.
I first was clued in that something was off while listening to a SamIAm video here. Basically Sam is calling out Ripple over their Q1 Markets Report because they didn't mention around $18 million of XRP paid to MoneyGram. Now technically this isn't a sale of XRP, but it's convenient to leave out and we would only know that this was happening because the SEC forced MoneyGram to report it on their Quarterly Investor Report.
Next I was scratching my head over a data discrepancy. Tether flipped XRP on LiveCoinWatch weeks before the other tracking sites like CoinGecko and CoinMarketCap. Upon closer inspection I realized that all these sites retrieve the XRP circulating supply from a single API call and LiveCoinWatch had coded their site incorrectly. They were pulling the XRP numbers from last year.
The API is here and anyone can checkout the data: https://data.ripple.com/v2/network/xrp_distribution. I believe that there is a companion private API Ripple uses to power their pie chart here: https://ripple.com/xrp/market-performance. Notice that the market performance (at the time of this posting) is for May 17th while the public API only goes to April. I don't know why Ripple hasn't updated the public API in a month. Since the public API has a history of postings you can go back and track the "distributed" tag all the way back to the middle of 2016. Here's what I found.
XRP Released into Circulation Yearly Inflationary Rate
2016 (starts mid year) 1,229,851,071 3.5%
2017 2,667,133,033 7.34%
2018 2,035,094,018 5.22%
2019 2,325,833,516 5.67%
2020 (May 1st) 773,689,933 1.78%
2020 End (at current rate) 2,321,069,799 5.35%
The 2016 data starts halfway through the year, so you can make an educated backfill guess for that year's number as well. Ripple has been distributing between 2 and 2.6 billion XRP a year with 2017 being a the high watermark. Interestingly the number distributed in 2019 is not that much different in spite of Ripple touting significantly reduced sales for almost the whole year.
So lets talk about the term "XRP Distributed" versus "XRP Sales" obviously Ripple is providing the data for both stats, but they only talk about sales in the markets reports. Distribution is a much wider term. It can include things like "Business Development" like MoneyGram discussed above. It could be compensation incentives given to Ripple employees. Xpring is known to fund investments using XRP. All of these items aren't reported because they are not sales. Even with some generous guesses to the above categories, I have no idea what Ripple is really doing with the XRP in 2020 if they're not selling it. Even factoring in about 90 million XRP given to MoneyGram, there's still a significant amount distributed and I would love some opinions on what they think Ripple is doing with this XRP.
Some takeaways for me:
submitted by RetirePerspired to Ripple [link] [comments]

Round up of Cryptocurrency News #5 Week 03/08 - 09/08

Welcome again to another recap and the first full week of the new month after breaking the downward trend on the monthly!
 
Firstly, from last weeks uptrend we have seen the market consolidate at this level throughout the week with a steady upward climb at the start of the week to a balance out above $11.5k for Bitcoin towards the end. For the market we have a total increase of $17.5B over the week but a 1% decrease of btc dominance moving mainly toward Chainlink and other altcoins.
 
Closing the week we have had some altcoin action, Ethereum breaking $400 midweek but now staying back in a nice channel between $350-$410 since the start of August. But, Chainlink killing it after breaking $10 and currently sitting comfortably above $13!! Other altcoins that have reaped rewards and I'm keeping an eye on are:
I have picked these as i have noticed they are usually the first movers or the biggest gainers after the market goes red. Chasing those quick gains!
 
What about the news for this week?
 
DISCORD LINK: https://discord.gg/zxXXyuJ 🍕 Bring some virtual pizza to share 🍕
Come have a chat, stimulate a discussion, ask a question or share some knowledge. We are all friendly crypto enthusiasts up for a chat, supportive and want to help each other with knowledge and investments!
Big thanks to our Telegram and My Crypto HQ for the constant news updates! The Gravychain Collective: https://t.me/gravychain My Crypto HQ: https://t.me/My_Crypto_HQ
Links
Important/Notable/Highlights:
Special Mentions:
Other:
submitted by IOTAbesomewhere to Gravychain [link] [comments]

Stellar or Ripple: which coin should you invest in?

Stellar or Ripple: which coin should you invest in?
Stellar and Ripple: two cryptocurrencies that can seem very similar. Ripple has a larger market cap, but Stellar has a lot of advantages of its own. Why should you choose XLM over XRP? Here are a few reasons!
Even though Ripple is no.4 on the CoinMarketCap list of the largest crypto coins (with $1.3 billion) and Stellar is only no. 14 with $500 million, we still believe that XLM will win out in the end. That's also why we created a wallet for lumens, not for Ripple. And if you were to ask us which crypto to buy right now, we'd suggest Stellar.
There are many reasons why we believe that Stellar is a superior project and a better investment. But before we get to them, let's remember one thing: they were both created – rather, co-created – by the same person, Jed McCaleb. Ripple was launched in 2012, but a few years later McCaleb began to get disappointed with where the project was going, so he went his separate way to create Stellar.
Now we've got history out of the way, let's talk about the differences.
Who is it for? In a few words: XRP is for banks, XLM is for people. Actually, Ripple is a protocol that's completely separate from the coin XRP. Those 100+ financial institutions that the company works with don't even use XRP, but just the protocol, in order to facilitate cross-border transfers between different banks.
Lumens was designed as digital money for the unbanked – for those 1.5 billion people who don't have bank accounts. It's easy to create tokenized versions of fiat currencies on the Stellar blockchain, too. In the future, people in Africa, Asia, the Americas, etc. will be able to send money almost instantly, almost for free using Stellar. We feel it's a stronger use case that corresponds better to the purpose of cryptocurrency than what Ripple does.
Can you launch dApps with it? Stellar supports smart contracts, so you can create any sort of decentralized application with this blockchain, just like on Ethereum. But Ripple doesn't have a smart contract functionality, it's just a protocol for sending money. So Ripple will never become a massive decentralized ecosystem – but Stellar can.
What's the consensus model? Both XRP and XML use unique consensus protocols that are very different from Proof-of-Work and Proof-of-Stake. However, since Stellar's protocol came later, it built on the one used by Ripple and improved it. It was actually designed by a famous MIT professor. It's sort of a next-generation consensus model compared to XRP.
How decentralized is it? It's a well-known fact that Ripple is highly centralized. The company decides which financial institutions in its network can participate in the consensus. Simple users like you and us would never be able to play a role. By contrast, anyone can take part in the consensus on the Stellar blockchain.
Yet another aspect of this issue is the control over coins. Ripple as a company controls over 60% of all XRP, and it can sell them as it finds fit. When Jed McCaleb left the company, his holdings were actually frozen, and this caused an uproar in the crypto community. The Stellar Foundation used to control more than 80% of all coins, but then they burned a huge part of their reserves several months ago, so that now the company controls only about 30%.
This last point about centralization is the fundamental reason why many analysts worry about XRP's long-term prospects. It's been growing due to a boost from Bitcoin, but it doesn't have many internal growth drivers. If there's a new downturn in the crypto market, or if the Ripple management conducts yet another sell-off, the price can fall sharply.
On the other hand, Stellar has lots of reasons to grow, such as new partnerships and the sheer fact that it's so undervalued. In the past couple of months the price of XLM surged faster than Bitcoin, Ethereum and almost any other coin from the top 10.
Therefore, our forecast is that XLM will keep growing. As for Ripple, we're not so sure. We don't want to give any investment advice, but if you have any lumens in your XLMwallet, you should definitely leave them there. By the end of 2020, you may be able to get a good profit, while XRP might eventually lose a lot of what it's gained since March.
Do you agree with our analysis? Share your opinion in the comments!
https://xlmwallet.co/
Website — https://xlmwallet.co/
Medium — https://medium.com/@XLMwalletCo
Teletype — https://teletype.in/@XLMwalletCo
Twitter — https://twitter.com/XLMwalletCo
Reddit — https://www.reddit.com/XLM_wallet/
submitted by Stellar__wallet to XLM_wallet [link] [comments]

Hello MLGC people, let's go for updates in our classic newsletter!

Hello MLGC people, let's go for updates in our classic newsletter!
🙅‍♂️Halving Bitcoin Cash did not affect the price
The fifth cryptocurrency in terms of capitalization, Bitcoin Cash (BCH), for the first time passed a fundamental event for the blockchain - halving, but the process will not have a bullish effect on the price.

📉Ripple co-founder withdrew 63.7 million XRP; What will happen?
Ripple cryptocurrency co-founder Jed McCaleb has just transferred 63'704'590 XRP ($ 12'293'769) to his personal wallet. XRP holders are preparing for a price collapse.

🎤A new type of attack uses a voice assistant
Researchers are sounding the alarm about a new type of hack targeting smart digital assistants such as Amazon Alexa or Apple Siri.

🦁MLGC finishing application development.
MLGC application will became available in Q2 of 2020 in Appstore and Google Play. Stay in touch and buy tokens until the moon price.

#gofurther
MLGC.io

https://preview.redd.it/lbxmcgkc9nr41.jpg?width=1280&format=pjpg&auto=webp&s=20b96f06d49e2179186b87262700c7033ed26fe8
submitted by MarshalLionGroup to u/MarshalLionGroup [link] [comments]

How do you feel about Stellar Lumens hyper inflation?

Jed Mccaleb says 85 billion lumens will be released over 10 years which equals roughly 8 billion lumens added to the circulating supply each year. This is what keeps me from going long on XLM. It's useful for making quick payments but it's something I pick up and use when I need it, then go back to Bitcoin for a store of value. If we learned anything from ZCL/BTCP fork, we saw what happens when you jack up the circulating supply, you hurt the price considerably
Let's look at the numbers (rough estimates). Theres a total supply of 104 billion (increasing by 1 billion every year due to normal inflation) with a circulating supply of about 19 billion and about 85 billion more to be released over a period of 10 years (according to the creator of XLM). In one years time if they release about 8 billion into the circulating supply, that's about a 33% inflation rate for the year which is very high. You hold XLM for 1 year and they lose about 30% of their value (19b -> 27b). The next year another 8 billion is released and they lose 25% of their value (27b -> 35b). 3rd year is about a 20% loss ( 35b -> 43b) 4th year about a 15% loss (43b -> 51b) and so on. So as you can see, overtime the hidden hyper inflation does get lower and lower but is still very high for the first few years, making XLM a bad store of value, and a better tool to use when needed. Now, if you think mass adoption will save you, it won't. It will certainly help but that just means those big gains you got are gonna take heavy losses.
This isn't intended to be fud, as i'm a fan of XLM because of it's performance and I use it when necessary because it's so quick cheap to send. But by no means would I consider XLM a store of value until most of the supply has been released. BTC is a store of value because it's supply is released so slowly. And I assume most people know XLM isn't a store of value but I'm sure there are still people out there who believe it is.
EDIT: Solution? Demand more clarification on the distribution of XLM and/or demand a coin burn. 85 billion lumens over a course of 85 years sounds a lot better. Or burning 50 billion lumens would be good as well. I like comparing Lumens to Dollars and Bitcoin to Gold. Lumens make a great everyday currency but not a store of value. Gold is impractial for everyday use but is a great store of value. I actually believe XLM has one of the best shots at becoming the future of digital cash, although i think digital gold will be worth a lot more.
submitted by jman76358 to Stellar [link] [comments]

Who is Sunlot Holdings? Can this proposal be a trick? planned by the big the guys in collaboration with Mark Karpeles.

First of all i don't give a fuck (actually I do) about what's happening with mtgox, but I keep thinking what if this is a frame-up made by the big guys? For them to be able to buy cheap coins and sell them later for a lot of money. Can this be possible?
I see Mark Karpeles a greedy sly person, a person who made a fortune from nothing, a person who would not say NO to an opportunity to earn some more millions.
submitted by pikios63 to Bitcoin [link] [comments]

Brief History Of Bitcoin

Brief History Of Bitcoin
Bitcoins have been classed as the world's originally decentralized cash, and for as far back as ten years, they have become all the more notable and keep on developing in notoriety.

The following is a concise history of how the Bitcoin began and what has occurred since.

2007 - It was in 2007 that the idea of the Bitcoin started. It is accepted that it was begun by Satoshi Nakamoto, in spite of the fact that very little is thought about him, other than the reality he is on record as living in Japan. Truth be told, many conjecture this may very well be a pen name more than one individual. Albeit soon, this character totally evaporated from the world.

August 2008 An application for an encryption patent application was recorded by three people who denied having any association with the supposed originator of the Bitcoin idea. They were Neal Kin, Vladimir Oksman and Charles Bry.

Around the same time, they namelessly purchased and enlisted the space bitcoin.org.

October 2008 In October of 2008, only two months after the space was enlisted, a paper titled, 'Bitcoin: A Peer-to-Peer Electronic Cash System', was distributed on a cryptography mailing list, apparently composed by Satoshi Nakamoto.

The paper laid out the establishment of how the Bitcoin would really work, and takes care of the issue of cash being duplicated, which permitted Bitcoin to develop genuinely.

November 2008 A month after the white paper was distributed, the Bitcoin venture is enlisted on a network joint effort site, SourceForge, which centers around the improvement and circulation of open source programming.

January 2009 In mid 2009, the principal square, which was nicknamed 'Beginning' is propelled, which permitted the primary adaptation of Bitcoin to be discharged.

There was further hypothesis that Bitcoins were created by more than one individual, as it had been accumulated with Microsoft Visual Studio for Windows, yet needed order line interface. It was anticipated as of now that a Bitcoin age framework would make a sum of 21 million Bitcoins during that time 2040.

Later on, right now, first exchange occurred among Satoshi and Hal Finney, a designer and cryptographic lobbyist.

October 2009 In October, New Liberty Standard distributes a Bitcoin swapping scale. The worth was built up and they distributed a pace of a Bitcoin at 1USD = 1,309.03 BTC. This was chosen utilizing a condition that incorporated the expense of the power to run the PC that produced Bitcoins.

Later on this month, the #bitcoin-dev channel is enrolled on freenode IRC, which was a conversation arrange intended for nothing and open source advancement networks.

December 2009 In late 2009, the second form of the Bitcoin was created and discharged; anyway later on in the month, they acquired their first trouble increment.

February 2010 In mid 2010, the Bitcoin money trade was conceived, and the Market was built up by the now ancient organization dollar. Later on in the month, and 18 months after the application was documented, the encryption patent was distributed and endorsed.

May 2010 This month would end up being an achievement for Bitcoins, because of the way that the primary genuine exchange occurred. A software engineer named Laszlo Hanyecz, who lived in Florida pays 10,000 Bitcoins on a pizza, that was initially purchased from Papa Johns by a volunteer in England. The conversion scale at the time put the price tag for the pizza at 25USD.

https://preview.redd.it/93tj7l1248g41.jpg?width=750&format=pjpg&auto=webp&s=ddd04f2fc86eaf33bc9894dd98f30781511c4f42
Given the present swapping scale, today the pizza is esteemed at 1,961,034GBP.

July 2010 The third form of Bitcoin is created and discharged. Later on that month, there were an enormous number of new Bitcoin clients, on account of a notice of the new form on Slashdot.

During a multi day time of this current month, the trade estimation of Bitcoin expanded multiple times, from 0.0008USD/BTC to 0.080USD/BTC which the prompted Jed McCaleb building up a Bitcoin money trade showcase named MtGox.

August 2010 August 2010 end up being a sad month for the Bitcoin, and the framework was hacked. A defenselessness in the framework caused Bitcoins to be inappropriately checked, and accordingly abused, which brought about the age of 184 million Bitcoins. The made the worth drop radically.

September 2010 This was a bustling month for Bitcoins, as they attempted to recoup from the hacking the earlier month. An offer was made by jgarzik as 10,000BTC, which was proportionate to 650USD at that point, to open source their Windows-based CUDA customer. Later on that month, they took this offer and discharged the source, under the MIT permit.

October 2010 Bitcoins confronted a ton of investigation this month, when a between administrative gathering named The Financial Action Task Force gave a report on tax evasion, notice about the utilization of computerized monetary standards to fund fear based oppressor gatherings.

In spite of this report, the Bitcoin swapping scale, which had slowed down, started to climb once more. This came after the principal open adaptation of an OpenCL digger is discharged.
submitted by Bitcoin12investment to u/Bitcoin12investment [link] [comments]

Jed McCaleb's role in XRP sell-off

Ripple Co-Founder’s Token Selloff Accelerates Crypto entrepreneur Jed McCaleb, now with a rival startup, has sharply stepped up sales of his billions of dollars in XRP holdings XRP, which was created by Ripple, is worth more than $22 billion, making it the cryptocurrency market’s third-most valuable token after bitcoin and ether. XRP, which was created by Ripple, is worth more than $22 billion, making it the cryptocurrency market’s third-most valuable token after bitcoin and ether. PHOTO: KACPER PEMPEL/REUTERS 0 COMMENTS By Tomio Geron Sept. 24, 2018 7:30 a.m. ET One of the co-founders of crypto startup Ripple holds billions of dollars worth of the company’s digital token, but his continuing sales of the token have dramatically risen over the past few weeks.
Jed McCaleb, who left Ripple a few years ago and is now co-founder of a competing outfit called Stellar, could put pressure on the cryptocurrency by increasing sales of the tokens, called XRP.
XRP, which was created by Ripple, is worth more than $22 billion, making it the cryptocurrency market’s third-most valuable token after bitcoin and ether. In the frenzy of the crypto market that crested early this year, XRP climbed as high as $118 billion. But since the start of the year, the crypto market has plunged about 74%.
Mr. McCaleb’s increased sales of XRP could be another factor that drags on the token, which Ripple has used to fund its growth and is intended to help run its payments-protocol software.
A founder’s increasing sale of XRP could be a negative for the token’s value, just as it would be if a CEO of a publicly traded company suddenly started dumping shares in the company’s stock.
Mr. McCaleb’s selloff also highlights the complications that early-stage crypto startups can face when their fortunes depend so much on the value of a publicly traded token.
A representative for San Francisco-based Ripple declined to comment. Mr. McCaleb wrote in an email, “I’m not selling more than I have agreed to with Ripple,” but he declined to comment further.
Mr. McCaleb, who also started early crypto exchange Mt. Gox, left Ripple in 2013 amid a falling-out and went on to start Stellar in 2014.
Ripple, which was founded in 2012 and later renamed Ripple Labs Inc., specializes in global cross-border money transfer technology. Not counting the roughly 60 billion XRP tokens ($23.6 billion) held by Ripple as of January, the company previously raised about $93 million in venture capital from firms like RRE Ventures, Andreessen Horowitz and Founders Fund, according to PitchBook Data.
Ripple has been buoyed by the dramatic rise of the price of XRP tokens over the past year or so. The company holds the majority of XRP and has publicly talked about funding Ripple with proceeds of token sales.
It has also capitalized on the high value of XRP to fund various projects including a venture fund called Xpring. Ripple’s founders have even used XRP to invest in directly startups such as Omni.
Under an agreement he reached with Ripple in 2014, Mr. McCaleb’s sales of XRP have been limited to a daily cap, which was revised in 2016 based on a set percentage of the average daily volume of XRP. This was done to facilitate an orderly market for Ripple.
Mr. McCaleb and his children retained about 5.3 billion XRP when the agreement was signed, not including 2 billion XRP in a donor-advised fund. In 2016 McCaleb and the fund held 7.3% of XRP, a fortune that would be worth around $4 billion, though he has sold a portion since then.
Mr. McCaleb, now in the third year of the agreement, previously was selling at or below the 0.75% cap, according to the XRP ledger and his publicly-known XRP address. However, starting in late August, his sales dramatically rose by the day.
In July, Mr. McCaleb was selling 20,000 to 40,000 XRP a day. However, starting in August, according to a public clearinghouse of token trades, he started selling 499,312 XRP a day, and at one point sold 752,076 a day. In other words, each day he moved and sold about 35 times the limit outlined in his 2016 agreement with Ripple. For example, over six days ending Wednesday, Mr. McCaleb sold more than 500,000 XRP a day, or about $150,000.
The average daily trading volume of XRP on the Ripple consensus ledger—which is how Mr. McCaleb’s cap is calculated—hasn’t changed considerably in recent months and not enough to account for the change in his daily sales.
Mr. McCaleb can’t make these changes without Ripple’s approval, according to the 2016 agreement. His XRP was placed in a custodial account at Ripple, according to the agreement. It says that although he owns the XRP, Ripple controls the releases of the tokens to him.
Write to Tomio Geron at [email protected]>
I've been a long-time Ripple enthusiast, and always brushed off us being "ripplebois" or "fanbois". But after posting this in the Ripple sub, and reading the comments, I can't help but to agree with those nicknames.
submitted by ripple4me to CryptoCurrency [link] [comments]

Stellar Lumens HODL alert: 2017 Round up, Partnerships, Lumens vs. Other Cryptos

Welcome everyone! The future of Stellar Lumens is bright! Today we will look at the accomplishments of Stellar.org in 2017.
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2017 Round Up
IBM / Stellar Partnership
• Kik Messenger’s KIN coin to move from Ethereum to Stellar in 2018
• Stellar ATM introduced in Singapore
• Jed McCaleb confirms IBM/Stellar has 30 banks on board (Youtube Video)
Lightyear.io enables forward thinking financial entities to easily join the Stellar ecosystem.
• IBM adds 8 new validators from 8 different countries onto the Stellar network (article)
Forbes calls Stellar “venmo, but on a global scale - and for larger bodies like banks and corporations.”
• Stellar Lumens Is Up 6,300% Since March and Is Aiming for Big Blockchain Partners (article)
• Many new partnerships (listed below) that will be using the Stellar network in 2018.
Binance and GoPax Exchanges Adds Stellar
Ledger Nano S support is now available for Lumens (XLM)
• The next coin to break into the top 10 cryptos (article)
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2017 Partnerships & Financial Institutions
IBM - is an American multinational technology company headquartered in Armonk, New York, United States, with operations in over 170 countries. IBM partnered with Stellar to help financial institutions address the processes of universal cross-border payments, designed to reduce the settlement time and lower the cost of completing global payments for businesses and consumers.
SatoshiPay - a web payment system that helps online publishers monetize digital assets like news articles, videos, or PDFs in tiny increments without friction.
EXCH.ONE - is a FinTech software company based in Switzerland currently working to integrate its platform and its first technology adopter Euro Exchange Securities UK Ltd. into the Stellar network. This addition to the Stellar network will bring access to currency markets of South and Central America,UK and a number of EU countries.
Novati (ASX:NOV) - is an Australian-based software technology and payment services provider. Novatti is currently working to integrate it’s platform into the Stellar network with the ultimate aim to build a global money transfer solution to provide cross border, cross currency and cross asset payments.
Pundi X - is an Indonesia based fintech company that provides POS device, debit card, multi-currency wallet that empowers individuals to buy and sell cryptocurrency at any physical store in the world. They say "buying cryptocurrency should be as easy as buying a bottled water."
MoneyMatch - is a Malaysia based fintech startup that provides a fully-digital peer-to-peer currency exchange platform for customers to transfer and exchange foreign currencies with complete ease and at great value. The company plans to integrate with the Stellar network and enable pay in and pay out from Malaysia.
Streami - is a Korea based fintech company that offers blockchain enabled cross-border remittance service and recently launched a cryptocurrency exchange. The partnership extends both on the exchange side and remittance operations.
Neoframe - is developing and marketing trading solutions for big brokerage firms in Korea and extends its business to blockchain based applications. Neoframe developed high performance centralized cryptocurrency exchange as well as secure wallet solutions and is working with big financial players. The company is planning to launch a remittance business for ASEAN countries (Thailand, Vietnam, Indonesia, Malaysia, Philippines, Singapore, Myanmar (Burma), Cambodia, Laos, Brunei) using Stellar.
SureRemit($RMT) - is a Nigeria based global non-cash remittances company. SureRemit leverages the Stellar blockchain platform to connect immigrants abroad directly with merchants that provide the services needed by their loved ones back home. With Remit tokens, immigrants all over the world can access digital shopping vouchers that can be spent on goods and services at accepting merchants wherever they are.
Cowrie Integrated Systems - is a Nigerian based Value Added Service Provider. Cowrie provides services at the intersection between telecoms and finance. Cowrie recently joined the Stellar network to bring novel fintech services to the African market.
Smartlands - is a Stellar-based platform designed to create a new class of low-risk tokens, secured by real, profitable assets in the real-world economy. Smartlands is designed to promote investments in the agricultural sector by allowing investment in individual projects, agricultural companies or indexes of groups of projects. These investments will be fully collateralized by agricultural real estate, other productive assets such as fruit or nut trees or, in some cases, the actual crop.
Klick-Ex - is an award winning regional cross-border payments system delivering financial infrastructure for emerging markets. It has been responsible for dramatic uptake in digital financial services in unbanked regions of the world, and lowering costs for banks, central banks and consumers in low liquidity currencies. Its key presence is in the Pacific and Europe, and it is a founding member of www.APFII.org processing more than 775,000 transactions per second, per billion of population (source).
Mobius - Mobius connects any app, device, and data stream to the blockchain ecosystem. Our simple and easy to use bidirectional API allows non-blockchain developers to easily connect resources to smart contracts and more. The Mobius MVP acts like Stripe for Blockchain by introducing innovative standards for cross-blockchain login, payment, smart contract management, and oracles. The Mobius Team includes David Gobaud, Jed McCaleb (Stellar.org founder), Jackson Palmer (creator of Dogecoin), and Chandler Guo (notorious Bitcoin & blockchain investor).
Chaineum - Chaineum, the first French ICO Boutique, will use the Stellar network for upcoming ICOs. “Chaineum is positioned as the first “ICO Boutique” in France, providing a range of end-to-end services to companies and international start-ups wishing to develop with this new funding mechanism. Chaineum is preparing 8 ICOs by the end of 2017, for European, North American and Asian companies, of which cumulative amount could reach € 200 million." (source)
Poseidon Foundation - Poseidon will simplify the carbon credit market with the creation of an ecosystem built on Stellar.org’s blockchain technology. This technology will prevent double counting of carbon and will be consistent across jurisdictions, making it easier for companies to deliver and measure progress towards their climate targets or other goals such as deforestation-free commitments.
Remitr - Remitr is a global platform for cross border payments, licensed in Canada. Remitr uses the Stellar network for international settlements for businesses as well as other payment partners. Remitr’s own payout network of 63 countries, comprising several currencies, is extended onto the Stellar network.
MSewa Software Solution (MSS) - MSewa Software Solution (MSS) Payments provides a one-stop digital payment service available across the Globe. MSS Payments aims at serving the consumers (Banked, Unbanked and Underbanked) with mobile banking facilities on the move from anywhere by transferring funds in their mobile phone.
PesaChoice - PesaChoice is a leader in international bill payment services for the African diaspora. PesaChoice aims at making international bill payment process easy, seamless, secure, with reasonable and competitive service fees, and up to date technological advances.
SendX - Singapore based SendX, in partnership with Stellar, is the better way to move money worldwide. The SendX team believes that the future of transactions is decentralized and distributed, bringing true equity to everyone across the value chain.
VoguePay - VoguePay, with offices in the United Kingdom and Nigeria, is partnering with Stellar to become the cheapest and most efficient way to send money between the United Kingdom and Nigeria. In the coming months, they expect to expand this service to other selected African countries.
HashCash - Hashcash consultants build financial solutions for banks and financial institutions over blockchain. We leverage the Stellar platform to build products that vastly improve the remittance and payments experience for banks and their customers. Transfers happen lightning fast at a fraction of current rates and operational cost is significantly reduced. HashCash is headquartered in India, with operations across South Asia and the Gulf.
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Stellar Lumens vs Other Cryptocurrencies
Lumens vs. Bitcoin: Jed McCaleb spoke at Distributed Markets in 2017 about the advantages, but more importantly, the disadvantages of Bitcoin. Listen to the talk here. Jed said, “Bitcoin is this awesome innovation. The first thing it does is converts a real world resource, electricity, into a digital asset. So it takes something from the real world and puts it into the digital realm. The second thing it does is provides immutable public record. It’s basically a database that everyone can see but no one change arbitrarily… That’s great, Bitcoin solves the double spin problem [ of proving possession and transmitting volume]… [However, to fix the problems of bitcoin] you might think well maybe we’ll just kind of keep adding [software] to Bitcoin until we get there, but that’s not really the way software works. You want to have the design from the beginning and solve these simple issues. Bitcoin was designed to be a new currency, it wasn’t really designed to be this unifying universal payment network. So that’s what Stellar does. It solves these three remaining issues.”
Lumens vs. Bitcoin #2: According to wired.com, "Bitcoin mining guzzles energy - and it's carbon footprint just keeps growing." Wired says "Today, each bitcoin transaction requires the same amount of energy used to power nine homes in the US for one day... The total energy use of this web of hardware is huge—an estimated 31 terawatt-hours per year. More than 150 individual countries in the world consume less energy annually. And that power-hungry network is currently increasing its energy use every day by about 450 gigawatt-hours, roughly the same amount of electricity the entire country of Haiti uses in a year." Because Stellar is based on a consensus algorithm rather than mining, it takes much less energy to run the Stellar network. The Poseidon Foundation decided to build their platform on Stellar rather than Ethereum or Bitcoin because of this (twitter source).
Lumens ICO tokens vs. Ethereum ICO tokens: According to Stellar.org, "traditionally, ICO tokens have been issued on the Ethereum network in the form of ERC20 tokens. ERC20 tokens are easy to issue and are infinitely customizable using Ethereum’s smart contracting language. However, recent events have highlighted and exacerbated some weaknesses of the network, including slow transaction processing times for the network during ICOs and increasingly expensive gas prices (by fiat standards) for transactions and smart contract execution. Moreover, many organizations require only basic tokens; they adopt the risk of Ethereum’s Turing complete programming language without taking advantage of many of its benefits."
"While Ethereum has the most expressive programming capabilities, we believe Stellar is the best choice for ICOs that do not require complex smart contracts. Stellar’s primary goal is to facilitate issuing and trading tokens, especially those tied to legal commitments by known organizations, such as claims on real-world assets or fiat currency."
Stellar vs. Ethereum #2: The median transaction time on Stellar is 5 seconds, compared to approximately 3.5 minutes on Ethereum (source). Stellar has a negligible transaction fee (.00001 XLM ~= $0.0000002) with no gas fee for computation, while depending on the complexity of the computation, the median cost for a transfer on the Ethereum network is $0.094. Security: While both Stellar and Ethereum run on a decentralized network, the Stellar network has fewer security pitfalls. Stellar uses atomic transactions comprised of simple, declarative operations while Ethereum uses turing complete programming capabilities which produces less auditable code and greater risk of exploitable vulnerabilities (source). Recently, a security flaw in the Ethereum network froze millions of dollars. According to Mobius ariticle written by David Gobaud, "On November 6, 2017, Github user deveps199 'accidentally' triggered a bug in Parity, a popular Ethereum mult-sig wallet, that froze more than $152 million in Ether across 151 addresses. The bug impacted several token sales including Polkadot, which has had ~$98 million out of its recent $145 million sale frozen."
"Mobius had none of its ongoing pre-sale Ether frozen because we do not trust Ethereum’s Smart Contract based multi-sig wallets given the vast Turing complete attack surface and did not use one. Security broadly is one of the main reasons the MOBI token that powers the DApp Store is a Stellar Protocol token and not an Ethereum token."
Lumens vs. Ripple: According to Wall Street Bitcoin Exchange, "Many investors like to compare the company [Stellar] to Ripple, and there are a lot of similarities, being that some of the founders worked on the Ripple team. In what can now be looked at as another blockchain development drama that plays out on chat boards and in interviews all across the globe. Stellar declared they fixed Ripple’s problems with their hard fork, however, Ripple has failed to admit to any of the flaws in its design that the Stellar team has pointed out." The article concludes by saying, "We Choose XLM Over XRP For 2018. That is why we are going with Stellar Lumens over Ripple in our portfolio for the rest of 2017 and 2018. After holding Ripple for a long time this year, it just never seems to make the big break like other names with bigger market caps like Bitcoin Cash, Dash, and Litecoin have. While we are holding on most all our larger market caps, we feel that Stellar Lumens will be one of the break out coins for 2018."
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Conclusion
The stellar.org team is doing an amazing job making partnerships and pioneering the use of blockchain technology for various types of transactions. What we are seeing is a new technology that can actually be used to solve real-world problems. As a community, we need to continue supporting Stellar and we will quickly see it power transactions across the world. What are your thoughts about Stellar? What do you see in the future of Stellar? Any important news you want to share? Comment below.
submitted by chargingerman to Stellar [link] [comments]

My Bitcoin story, if you are interested

Hello, I heard about Bitcoin a few years ago thanks to Roger Ver. It was in a Youtube video. He sounded familiar because we share the same opinions and ideas. And I liked the idea of being my own bank. My single mother is quite poor, and banks always treated her like a dog. I hate banks. But I was a student (broke) and you could hardly buy anything with Bitcoin in France anyway.
When I got my first job (as a dev), I bought some Bitcoin and heard about the UASF and UAHF "war". Well, I'll be honest, I sold my Bitcoin Cash right after the fork. "Everyone" was saying that the forked coin would fail miserably. Which didn't happen.
Then I discovered that the main Bitcoin devs were backed by a company named Blockstream. That Blockstream had AXA as an investor, among others. Then I heard about what they did to Bitcoin. I remember trying to pay for my VPN with Bitcoin. And the fees were 20$. Ridiculous. And I heard about the censorship. I was myself banned from /Bitcoin (and /politics). I found the Bitcoin community to be immature, greedy and selfish. All you could see was price meme gifs. It was like a primary school. I was so angry because of that I moved away from Bitcoin in general. Converted to Stellar as I liked Jed McCaleb's vision. I was lucky to do this right in time, as I made great profits. Enough to pretend that I never sold my Bitcoin Cash, as I could buy back the same amount. It was like a fantasy, I didn't do it. But the idea remained til a few weeks ago when I actually did it. It was the fact that Twitter removed @Bitcoin because of Bitcoin Core trolls that triggered some anger inside of me. Maybe that's silly, but I'm driven by ideology. And Bitcoin Core is not Bitcoin. Its only use as of today is to buy alts. Lightning Network? Come on. Why add a pile of crap on top of something that could work? I know the answer. That's why I'm here. I'd like to thank Satoshi, Roger Ver, Jihan Wu, Gavin and Rick for their hard work. And also the community. Let's spread this and get rid of banks.
submitted by puppetcountry to btc [link] [comments]

My Lumen FAQ

The following are my OPINIONS ONLY, based on my understanding of various sources I have come across. This is NOT intended to serve as investment advice or any kind of advice, and I am not an expert of any kind. You must do your own research. The first place you should visit is the Stellar official website, and more specifically their Lumen FAQ.
Lumens are available on these exchanges: exchange list
There are two ways to purchase Lumens on the exchanges: buy directly using your country’s (fiat) currency, or buy another established cryptocurrency (such as Bitcoin, Ethereum, or Litecoin) and then use that cryptocurrency to purchase Lumens (on the same or different exchange). As of January 2018, there are not many exchanges where you can buy Lumens directly, but several promising projects are in the works and those exchanges could be up and running in the very near future (example: FairX.io, yicex.com, and peerex.co).
A small group of cryptocurrencies, including Lumens, are built for a “higher purpose” than just replacing hard currency or as investments. This select group aims to solve certain problems in the world. In the case of Stellar Lumens, the Stellar organization’s mission is to connect people to low-cost financial services, which will help everyone and especially the billions of underbanked people in the developing world. What separates Stellar from the rest of this group is that Stellar has progressed very far toward its goal of global adoption and continues at a fast pace. It has formed major business partnerships, including IBM, Deloitte, and Stripe. Stellar is already running a blockchain banking network in a 12-currency region which includes Australia and New Zealand. Since the technology is open source, the Stellar organization seeks input from tech professionals all over the world to build and continuously improve the technology, the result of which is an explosion of new apps and use cases all operating on the Stellar network. Also, since Stellar.org is a non-profit organization, we don’t have to fear a corporate overlord. The Stellar team is top notch, including Jed McCaleb (founder of Stellar, Ripple, and the first major Bitcoin exchange Mt. Gox). The team travels all over the world, showcasing what the technology has to offer and establishing new partnerships.
In summary, Lumens are more than just a cryptocurrency or investment. As the underlying currency of the Stellar network, Lumens are a necessary part of what will likely be a globally-adopted technology that serves an unmet need. The more valued the technology becomes, the more valued Lumens become. All other cryptocurrencies that are not attached to impactful technologies or have slow adoption will likely lose value over time or even disappear.
A lumen is a unit of cryptocurrency that is the native (built-in) currency of the Stellar network. Its symbol is XLM (formerly STR). As of January 2018, approximately 18 billion are in circulation. It is planned that there will be a total of 100 billion Lumens distributed worldwide (it will take a few years for this to be completed). There is a built-in 1% annual inflation rate, which means that 1% is added to the total number of Lumens each year. By the way, Ripple’s cryptocurrency also has a planned total circulation 100 billion XRP’s.
Lumens are built into the Stellar network; they are required for any transactions performed on the Stellar network. Lumens serve two purposes: security (anti-spam), and bridge currency.
One way lumens provide security is that each transaction on the Stellar network costs a small amount of lumen (about 0.00001 lumen), which prevents bad actors from flooding the network with small transactions (called a DoS attack). A second way Lumens provide security is the requirement that every account on the Stellar network must hold a minimum balance of Lumens (currently 20 Lumens, soon likely to be reduced to 10 Lumens), helping to ensure that all accounts are genuine.
For transactions that involve two different currencies (or two different assets), the Lumen facilitates the transaction by acting as a bridge. For example: US Dollar to Lumen to Chinese Yuan. It is important to note that, as a universal bridge currency, the Lumen must have real value (purchasing power) anywhere in the world. That is why Lumens are traded on global exchanges; people and businesses will be actively converting their specific currencies to Lumens and vice versa every day, thereby establishing the Lumen’s value.
Since Lumens are openly traded on global exchanges, investors may see Lumens as a store of value. As more applications using the Stellar network become adopted, the volume of transactions performed on the network increases. Since Lumens are a necessary part of the system, Lumens become more “valuable” and the price of a Lumen may rise on the exchanges. As with any other cryptocurrency right now, there is also an element of speculation that can affect the price of a Lumen.
The mission of the Stellar network is to provide low-cost, high-speed transactions for anyone in the world, including the unbanked billions of people in developing countries. As Lumen prices rise, it would seem reasonable that Stellar will keep pace by reducing the minimum balance requirement and even the per-transaction lumen cost. In this way, the real cost to open a Stellar account and to transact on the Stellar network can continue to remain low.
Ideally, the two parties involved in a transaction would want the value of the bridge currency to remain stable until their transaction is completed. The value of Lumens is determined by the market and is therefore subject to fluctuation (as with any currency, whether digital or fiat). Fortunately, each transaction on the Stellar network only takes about 2 to 5 seconds to complete, so stability of Lumen price may not be a significant issue anyway.
The two parties involved in a transaction only care that the transaction gets completed successfully. Assuming sufficient stability during the transaction (as mentioned above), the actual price of a Lumen should not matter. For example, if the two parties are exchanging 10 US Dollars into 65 Chinese Yuan, each of these is equally possible: (10 US Dollars = 10 Lumen = 65 Yuan) , or (10 US Dollars = 0.5 Lumens = 65 Yuan).
Stellar adds 1% to the total Lumens each year, apparently to account for Lumens that are accidentally lost (for example, lost wallet info or errors during transfers). This 1%, as well as all Lumen fees paid for transactions on the Stellar network, are added to an “inflation pool” each year. Each holder of a Stellar account gets to vote for another account (or even their own account) that they want to receive the inflation pool, and any account holder that receives at least 0.05% of the votes will receive a pro-rated amount of the Lumens from the pool for that year (the pool Lumens are actually distributed weekly). The inflation pool is apparently an incentive for account holders to become good citizens of the Stellar ecosystem, making them popular enough to receive votes.
For the sake of argument, let’s assume the entire supply of 100 billion Lumens has already been distributed. As mentioned earlier, Lumens are used to pay for transactions on the Stellar network (currently 0.00001 Lumen per transaction), and Lumens act as a bridge currency. For the purposes of transaction fees, the supply of Lumens is probably more than enough to meet that need. For the purposes of bride currency, it’s a different story. One source estimated that the worldwide total number of non-cash transactions (checks, credit cards, etc.) in 2011 was over 400 trillion US dollars, or roughly 1.1 trillion US dollars per day. Even if Stellar were to handle only 25% of all those transactions, Stellar would need at minimum 275 billion US dollars of bridge currency available each day, which would set the price of a Lumen at $2.75 each. However, for things to run smoothly, there must be adequate reserves of bridge currency, especially in times of crisis. It has been suggested that banks have a 30 day supply of reserves, so we could expect the same of the bridge currency. Since the Lumen supply is fixed at 100 billion (not including 1% inflation), the Lumen price should be 30 times $2.75, or $82.50 for each Lumen. Throw in other factors that further restrict the circulating supply of Lumens, like people holding onto Lumens as investments instead of spending Lumens, and the price of each Lumen will increase further. And since Lumens are purchased on exchanges, market forces may drive up the price even more. You get the idea.
This is just a hypothetical case to explain why I believe the value (price) of the Lumen will be much higher than it is today, even with the large supply. Whether you agree with that explanation or not, it is reasonable to expect that the inherent value of Lumens will increase as adoption and use of the Stellar network increases.
submitted by SaneObserver to Stellar [link] [comments]

Bitcoin Flash Crashes: Historical Context As BTC Recovers Losses

Bitcoin Flash Crashes: Historical Context As BTC Recovers Losses

https://preview.redd.it/51y34zrhmi131.jpg?width=1080&format=pjpg&auto=webp&s=bf73268bb846ef383904a0760e3c0a2faae43704
Will the latest Bitcoin flash crash spook crypto hodlers?
A bitcoin flash crash put a (temporary) end to the recent bull run, with bitcoin losing ten percent only days after doubling in price for the year. The result was another market panic, with $21 billion shredded from the total market capitalization in 24 hours.
And just two days later, we are almost right back where we started – bitcoin is hovering around the $8,600 mark at the time of writing.
These flash crashes happen regularly in the crypto world, where whales and news cycles drive price more than value (perceived or otherwise). And while there have been occasions when the flash crash drove a catastrophic market collapse – as in early 2018 – the more seasoned bitcoin investor might be tempted to ride these dips.
A few of the more devastating crashes are mentioned here – but there have been dozens of corrections over the years that have, as yet, failed to crush the King of Cryptocurrencies.
What Caused The Bitcoin Flash Crash This Time?
A large sell order of 5,000 BTC was placed on Bitstamp for $6,200 – around 30 percent below the then-market price. Panic ensued, with Bitstamp leading the charge downwards for bitcoin. That sentiment quickly spread market-wide.
Influential crypto identity @DoveyWan suspects manipulation, making the argument that nobody with 5,000 bitcoin would leave it on an exchange to innocuously sell.
Flash Crash? Ha! Crypto Sneezes At Ten Percent Drops!
But as mentioned above, many cryptocurrency veterans hardly sneeze at a ten percent dip. In the heady days of Mt. Gox, bitcoin saw flash crashes that put a ten percent fall to shame. Probably the most famous of all was the plunge from $32 to one cent in June 2011.
That was the result of a malicious hack of Mt. Gox founder Jed McCaleb’s account. McCaleb retained admin rights on the exchange, having sold it to Mark Karpeles three months prior. (McCaleb has also been deeply involved in both Ripple and Stellar – the latter of which he still serves, as CTO.)
Mt. Gox dramas were again behind – or correlated with – another bitcoin plunge when the exchange shut in February 2014. Just after it announced its closure on February 10th, large sell orders were placed on the two other crypto exchanges, Bitfinex and BTC-e.
The sell orders were filled, bringing bitcoin down from $620 to $102 within mere seconds. It remained at that price for only a few minutes but the crash retains a storied place in bitcoin history.
Market Dips – Traders Just Love That Volatility
Those flash crashes, of course, were related to hacks and price manipulation. But the news-driven crashes are bordering on ‘frequent’.
On April 25th, the price of bitcoin dropped by around 10%, from $5,500 to just under $5,000. On February 24th, it dropped from ~$4,100 to ~$3,700. On January 20th… well, you get the picture.
Even as BTC began its long recovery, last December saw bitcoin fall around 11 percent in a day.
But what has mired the community more, perhaps, has been the prolonged bear markets the OG crypto has endured. Generally, crypto veterans recognize three prolonged bear markets.
From June to November 2011 bitcoin lose 93 percent of its value – falling from $29 to around $2. Traders took six months to regain confidence in the emerging digital asset.
December 2013 to January 2015 was an 18-month bear market that saw bitcoin correct around 85 percent. Over the period bitcoin fell from well over the psychologically significant $1,000 mark to eventually bottom out around $177. It would not breach its all-time high again until April 2017.
And Then There Was The Winter…
Just when crypto was attracting significant mainstream media interest and impending institutional investment, we encountered a significant short-term price surge toward the end of 2017 (the famous bubble), after which prices began falling and have yet to recover.
One could note the recent price upswing and suggest that the latest bear market has finished. Others may need to see bitcoin, at the very least, above all-time highs to suggest a new bull has been born.
That price is a long way north of where we are. But there is little doubt that 2019 has offered if not a full reversal, then at least a reprieve, for bitcoin bulls.
submitted by iTradeBit to bitcoin_crypto [link] [comments]

Highly Centralized Ripple (XRP) a Contagion not a Cryptocurrency

Highly Centralized Ripple (XRP) a Contagion not a Cryptocurrency

https://preview.redd.it/vy1x2grt1a421.png?width=690&format=png&auto=webp&s=4887d58c413c8162fdf4757d4e437538249213a6
https://cryptoiq.co/highly-centralized-ripple-xrp-a-contagion-not-a-cryptocurrency/
The War On Shitcoins Episode 5: Ripple (XRP). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
At this time, Ripple (XRP) is ranked as the number two cryptocurrency on CoinMarketCap with a market cap of $12.2 billion. However, when diving into Ripple’s actual technical details, it is clear XRP is not a cryptocurrency. XRP has no blockchain. Rather, it depends on a centralized distributed ledger system known as the Ripple Consensus Protocol. XRP has a built-in account freeze feature that most users are unaware of. The supply of XRP, and therefore the XRP market itself, is highly centralized. Based on all of this, Ripple (XRP) is clearly a shitcoin, and its spot near the top of the CoinMarketCap list is misleading.
For starters, there is a total of 100 billion XRP, with 59 billion XRP under the centralized control of Ripple Labs and 41 billion XRP in circulation. All 41 billion XRP that are in circulation were purchased from Ripple Labs, with a small amount being given away to charity each year, possibly so Ripple Labs does not have to pay its full tax bill. Each month, Ripple Labs sells up to 1 billion XRP, which is released from an escrow contract. This applies constant downward pressure on the XRP market and leads to a much higher than usual inflation rate for XRP versus other cryptocurrencies. This fact alone makes XRP a bad investment choice. There are much better, more decentralized cryptocurrencies to invest in that are not subject to overt market manipulation.
Another way to look at it, which makes the awful XRP market situation quite clear, is that the market cap of XRP is $12.2 billion, but Ripple Labs holds $17.7 billion XRP. Therefore, Ripple Labs holds more than enough XRP to suck the market completely dry. Also, there is no proof that Ripple Labs cannot simply print more XRP.
The centralized market conditions for XRP is a serious issue, but the centralized nature of the Ripple Consensus Protocol is even more concerning. There is no blockchain involved, rather it is a group of servers that validate each other. BitMEX Research deeply investigated this issue and found that Ripple Labs controls the servers. This makes the Ripple platform and XRP 100% centralized, and users must trust Ripple Labs. This is the opposite of the trustless decentralized blockchain that fuels Bitcoin.
Further, the Ripple Consensus Protocol has a powerful account freeze feature, which they built-in for regulatory compliance. This means that Ripple Labs can freeze any Ripple account. This was supposedly done so they would not get in trouble with the government, which is bad enough since that means the government can demand that Ripple Labs freeze user’s accounts. Even worse, Ripple Labs has exercised this power to freeze accounts in at least one case for their own motives, and it ended up being illegal.
One of the children of Ripple’s Co-Founder, Jed McCaleb, sold $1 million of XRP on Bitstamp, in a deal that was organized with Ripple Labs. After the deal was complete and Ripple Labs had acquired the XRP, Ripple Labs proceeded to use this account freeze feature to seize the USD. Bitstamp took this case to court, and it was ruled that Ripple Labs had to unfreeze the money and pay all legal fees. The case was found to be even more greasy than expected since this particular sale of XRP was meant to manipulate the price of XRP by setting the sale price of the XRP too high.
Just to show how centralized XRP is, one of the Founders of Ripple Labs, Jed McCaleb, received 9.5 XRP when the currency was first created. McCaleb was basically forced out of the company, and he went on to sell about 2 billion XRP before his account was frozen. A long court battle ensued in which Ripple Labs tried and failed to get the XRP back, and ultimately, it was decided that McCaleb must donate 2 billion XRP to charity and is only able to sell a small amount of his XRP per year.
If one of the primary Founders of Ripple cannot even use his XRP as he wishes, how can anyone else expect to have full control of their XRP? The reality is no one has full control of their XRP holdings since Ripple Labs could freeze their account at any time. This is the equivalent of Satoshi Nakamoto having his Bitcoins frozen after he left the development team, which is fortunately impossible.
It is crystal clear that Ripple (XRP) is not a cryptocurrency, but really just a balance in a centralized ledger system that is 100 percent controlled by Ripple Labs. Since the Ripple Consensus Protocol is run on a centralized set of servers there is no technological barrier to changing the rules. Already, it is profitable enough for Ripple Labs since Ripple Labs controls most of the supply and can freeze anyone’s account. They probably won’t change the rules.
It is absolutely baffling that some cryptocurrency users think Ripple (XRP) is awesome and defend it despite all of its issues. XRP is absolutely set up to fail since it has a single point of failure: Ripple Labs. Currently, Ripple Labs is in an intense court battle over whether XRP is a security, even though it is obviously a security.
The only thing delaying the necessary SEC announcement that XRP is a security is Ripple Lab’s well-paid legal team. When the SEC finally cracks down on Ripple Labs, it could be historically harsh, since the SEC has the ability to retroactively penalize Ripple Labs for all of its unregistered and unsanctioned security issuances since it launched. XRP is the crypto space equivalent of really contagious athlete’s foot that has infected the entire family, and the SEC has a big tube of Lotrimin that they can douse XRP with at any time.
submitted by turtlecane to CryptoCurrency [link] [comments]

HODL alert: The future of Stellar is bright! CONCLUSIONS of Michael Dowling AMA

Michael Dowling, the Group CTO and Chief Architect for Blockchain Financial Services at IBM, held an AMA yesterday under the name i_love_golang for Stellar redditors interested in the direction of Stellar.org in 2018.
Here are the main takeaways from the AMA:
Question asked by siaubus: "Why did you pick Stellar for the project?"
Answer by i_love_golang: 1: People Our team at IBM believe that people, not technology, make for solutions. More importantly, having the right people, with the right mindset, with the right incentives, with the right subject matter expertise, make for solutions that bring actual value to the world. In our experience working with the Stellar team, we saw a perfect match. The folks at Stellar, like us, want to see the world move past the 40+ year old fragmented system that we all suffer in today, but move towards a system that is more fair and equitable for all. 2: Asset Class XLM/Lumens market, while relatively small today, is growing, and growing fast. More and more people are buying Lumens and trading them, albeit for other cryptocurrencies, actively. Along with our partners at KlickEx, we have a strong desire (and requirement!) to also open the market for fiat (traditional currency) to XLM at the institutional level. Also important to us was knowing up front the full ownership structure of Lumens with respect to the founders and the development foundation managing XLM. The process is completely transparent and we (and you!) know the founders’ holdings of XLM. This helps us to ensure there’s as little financial conflict of interest as possible. 3: Technology The choice of tech, our team needed to take into considering some of the future capabilities and participants on the network. A very unique capability with Stellar is the ability to issue an asset directly on the network, and specify how that asset is managed on the network and what nodes validate and confirm transactions. That means we can work with other parties - such as traditional fiat currency issuers (stay tuned :) ) - and help them feel safe about issuing on-chain. Together with the technology we developed at IBM using Hyperledger Fabric, the ability to clear transactions with very fast settlement using Lumens was a no-brainer and a perfect match. Together, traditional - and non-traditional - Financial institutions can settle using a cryptocurrency/digital asset, with those transactions directly tied to counter-terrorism financing, AML, and KYC processes required by regulators around the world. Basically, its the missing piece those institutions need to move forward transacting with digital assets.
CONCLUSION #1 One reason Stellar is a valuable company is because of its team. Jed McCaleb, the founder and visionary of Stellar, has been a disrupter since 2000 with eDonkey, one of the largest file-sharing network at the time. He created the first Bitcoin exchange Mt. Gox, co-founded Ripple, then took his experience from Ripple to create the company we now know as Stellar. Jed has built a strong team of software engineers, innovators, researchers, scientists, businessmen and businesswomen, relationship builders, financial advisers, and so on to bring Stellar to life. His board members are diverse, including people from Stripe, Apache Software Foundation, WordPress, AngelList, and now IBM. The resources that are available for Stellar to grow are rich and diverse. Will Jed’s disruptive track record prove once again with Stellar? Mr. Dowling goes on to say “XLM/Lumens market, while relatively small today, is growing, and growing fast.” He has inside information and can clearly see the direction of the XLM market. This should be an indicator of what will happen to XLM in 2018. Mr. Dowling said IBM invested in the technology because assets can easily be issued directly on the network and be easily managed. According to Jed McCaleb in https://youtu.be/GIMOrsPxlZg at 5:25, he talks about Bitcoin and Stellar and the flaws of Bitcoin that Stellar fixes (I highly recommend watching the video) “Bitcoin is this awesome innovation. The first thing it does is converts a real world resource, electricity, into a digital asset. So it takes something from the real world and puts it into the digital realm. The second thing it does is provides immutable public record. It’s basically a database that everyone can see but no one change arbitrarily… That’s great, Bitcoin solves the double spin problem [ of proving possession and transmitting volume]… [To fix problems of bitcoin] you might think well maybe we’ll just kind of keep adding [software] to Bitcoin until we get there, but that’s not really the way software works. You want to have the design from the beginning and solve these simple issues. Bitcoin was designed to be a new currency, it wasn’t really designed to be this unifying universal payment network. So that’s what Stellar does. It solves these three remaining issues.” Jed has watched Bitcoin rise and knows the strengths and flaws of Ripple, and with that knowledge, he built Stellar.
Question asked by sintax_: "When does IBM plan to start using Lumens for transactions?"
Answer by i_love_golang: Immediately. The week of the announcement, we transacted with a few tightly monitored real-world value transfers. Through this year, you’ll see that traffic increasing gradually as more transactions are allowed to move through without tight monitoring. Basically: this is real money, affecting real people. There is zero room for error, so we’re making damn sure the system is built for scale.
CONCLUSION #2 It’s already in use. So far It works! Expect heavy traffic in the future. They are creating a platform that will be scaled to a large network.
Question asked by FuckJimmyFallon: "Is the partnership with Stellar temporary or long term? Will the network be integrated with IBMs cross border payments permanently?"
Answer by i_love_golang: This partnership is not just long term - it’s tight. Stellar joined the Hyperledger Foundation in addition to partnering on this project. There are many upcoming projects coming up this year about to be announced. Stay tuned :)
CONCLUSION #3 The IBM partnership is permanent and secure! I was wondering how involved IBM would be with Stellar and this sums the question up. Also, more projects = more real-life use cases = more money transfers by XLM = higher market cap and traffic on the network. Don’t forget that the value of XLM increases as people place more intrinsic value of the stellar project as a whole, which comes along with disruptive projects and partnerships.
Question asked by who_dat_swag: "How many partners from finance are on board with the project? How long do you expect to be using the stellar network and what might replace it?"
Answer by i_love_golang: We have 1 major market maker (right now - again, stay tuned VERY soon), and 14 major institutions involved in direct or indirect capacity on the network. Starting in Q12018, you should see more of those institutions redirecting payment traffic on the network. This will be a slow, gradual increase over time. That’s the right way to do this kind of things.
CONCLUSION #4 MORE PARTNERSHIPS! I remember watching Ethereum and Ripple in early 2017 before they announced large partnerships such as the Enterprise Ethereum Alliance (BP, Cisco, Intel, J.P. Morgan, Microsoft) and Ripple with financial institutions. Ethereum was $20 and Ripple was $.006. Look where they are today as they are more developed with a variety of partnerships. XLM have not hit this growth spurt in price and it is something that will happen within the next couple years. Remember, “this will be a slow, gradual increase over time” so this is for all of you noobs wondering why the price of Stellar hasn’t reached the moon. He also restates that there WILL be more traffic on the Stellar network. He has vision to the Stellar project that allows him to tell us this and I’m very optimistic.
Last Question asked by macjesu: "Any other cool partnerships coming for the future?"
Answer by i_love_golang: Oh, oh yes there are. Stay tuned.
CONCLUSION #5 MOON.
What are your thoughts about Stellar? What questions do you have about XLM/Stellar? Where do you expect to see Stellar next year at Q3 of 2018?
submitted by chargingerman to Stellar [link] [comments]

No mean to Fudle, but things that worry me as a Ripple 'Hodler' (a mixture of facts and feelings)

Some point from the Dark Side Of The Hodl.
Intentions = discussing and learning.
• If you are not being an a) inside trader, b) a genius neural network algo day trader or c) a whale manipulator then you probably are a (clueless) hodler like me. • When XRP price went up in December I remember Ripple CEO Brad Garlinghouse spoke about seeing a trend of Bitcoin and XRP price de-coupling. Looking at recent correlation charts (https://bitinfocharts.com/correlation.html and https://www.sifrdata.com/category/correlations/) there unfortunately still is no real de-coupling. I have faith in Ripple’s vision and technology, but I wonder what level of financial trading knowledge there is inside the company (knowledge of financial markets and financial derivates and manipulation tactics). • Speaking of financial weapons of mass destruction, why do financial derivates even exist? I know how investor Warren Buffet (the third wealthiest person on earth) feels about them. I also know derivates are invented and built by people with rocket science level IQ. These instruments recently infiltrated the cryptocurrency market (futures, ETF, options, swaps etc.). I guess that means “bye” to the original bitcoin philosophy of giving people more control over their own finances and keeping out those who were responsible for the last big financial crisis (https://www.bloomberg.com/news/articles/2018-03-29/barclays-agrees-to-pay-2-billion-to-settle-u-s-rmbs-suit). But of course, nobly trying to reduce the impact of financial scandals and crisis on the economy and our everyday life is something only Don Quixote would endeavor. Still, we should be grateful to people trying to do the right thing. • Recently Ripple chief cryptographer David Schwartz admitted (on Twitter) he couldn’t explain the recent rise and fall of XRP price (and other cryptocurrencies). For me that adds to uncertainty. • The fact that a large concentration of XRP holdings is in a few hands makes me a little uncomfortable. I am not talking about the escrow part here, which is fine by me. But, I could imagine that ‘the powers that be’ almost got a heart attack when they found out that some relatively small crypto company went from doing financially all right to financially catching up with the wealthiest people on earth. In just a few weeks: https://www.investopedia.com/news/ripple-execs-get-superrich-xrp-success-new-billionaires/ • A large XRP holding in de hand of Ripple rival (and Ripple co-founder) Jed McCaleb from Stellar doesn’t give me peace of mind either. Still, after reading some specifics about Jed McCaleb and Ripple (http://observer.com/2015/02/the-race-to-replace-bitcoin/), I rather support Ripple than Stellar. • Ripple Labs Inc. versus. R3 court case of course also has discomfort potential: https://www.xrpchat.com/topic/18838-ripple-labs-v-r3-update-w-court-documents/ • If these points don’t make you uncomfortable, good for you. But how about others average investors? Or more importantly, how about institutional investors and other big players? • Lastly, (not specific to Ripple or crypto), can somebody explain why anybody should be able to ‘naked short sell’ whatever, with leverage up to 100 times? Or how about 1000 times? Most of the time I just hear the usual hedging, risk management and liquidity nonsense as excuse arguments. https://en.wikipedia.org/wiki/Naked_short_selling Perhaps price levels only moving in one direction (mostly upwards because of seeing potential in a company or coin but also because of FOMO), is not making enough money for some people. So, let’s make price moving in two directions (instead of one) to double profit potential. Moving in waves around different price levels seems like a money-making cycle that can go on forever. Furthermore, it is just saver to let the price fluctuate at price levels where some people won’t feel threatened too much for losing power status quo. https://ambcrypto.com/price-manipulation-of-bitcoin-btc-okex-announces-rollback-of-futures-contract-data/
TL:DR version: finance sucks, still hodling on…….
submitted by CreditDefaultSlap to XRP [link] [comments]

bitcoin, XLM, XRP - is Jed McCaleb Satoshi Nakamoto? Why I think so

I have been invested in Cryptocurrency for the past six months. Over this time, I have formed the opinion that the cryptos with the greatest intrinsic value are Stellar Lumens and Ripple. Also, I believe that these are two of the only coins that - in the long run - could thrive if bitcoin crashes (Short term bitcoin pull backs = large decrease in ALL altcoin price/per as we have seen this past week). The technology these coins possess and the service they provide almost conflict with the idea of bitcoin, right? Benefiting banks and large corporations by eliminating (maybe too strong of a word) the need-fopurpose of a decentralized currency.
Bitcoin was created to serve as a peer to peer exchange, however, many will argue that most of bitcoins’ founding principles have been thrown out the window.
Early in the history of bitcoin, Satoshi basically stated that he did not like the direction bitcoin was heading, and that he was moving on to other things.
And that’s exactly what Jed McCaleb did.
Surely, one cannot assume that this Satoshi figure only created bitcoin, and then was never to be heard from again. No, a genius like that does not have just one jackpot invention.
That being said, Jed McCaleb created eDonkey in the year 2000, Mt. Gox, Ripple, and Stellar, all of which (besides stellar) provide(d) a revolutionary service. Is it that crazy to assume this was the same man who created bitcoin?
I would love to hear any thoughts on this theory that Jed McCaleb is Satoshi Nakamoto
submitted by Farm_Town_Savage to Bitcoin [link] [comments]

Stellar Lumens HODL alert: 2017 Round up, Partnerships, 2018 Road Map

THIS ARTICLE IS STILL UNDER CONSTRUCTION!!!!!
Stellar Lumens HODL alert: 2017 Round up, Partnerships, Lumens vs. Other Cryptos
Welcome everyone! The future of Stellar Lumens is bright! Today we will look at the accomplishments of Stellar.org in 2017.
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2017 Round Up
IBM / Stellar Partnership
• Kik Messenger’s KIN coin to move from Ethereum to Stellar in 2018
• Stellar ATM introduced in Singapore
• Jed McCaleb confirms IBM/Stellar has 30 banks on board (Youtube Video)
Lightyear.io enables forward thinking financial entities to easily join the Stellar ecosystem.
• IBM adds 8 new validators from 8 different countries onto the Stellar network (article)
Forbes calls Stellar “venmo, but on a global scale - and for larger bodies like banks and corporations.”
• Stellar Lumens Is Up 6,300% Since March and Is Aiming for Big Blockchain Partners (article)
• Many new partnerships (listed below) that will be using the Stellar network in 2018.
Binance and GoPax Exchanges Adds Stellar
Ledger Nano S support is now available for Lumens (XLM)
• The next coin to break into the top 10 cryptos (article)
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2017 Partnerships & Financial Institutions
IBM - is an American multinational technology company headquartered in Armonk, New York, United States, with operations in over 170 countries. IBM partnered with Stellar to help financial institutions address the processes of universal cross-border payments, designed to reduce the settlement time and lower the cost of completing global payments for businesses and consumers.
SatoshiPay - a web payment system that helps online publishers monetize digital assets like news articles, videos, or PDFs in tiny increments without friction.
EXCH.ONE - is a FinTech software company based in Switzerland currently working to integrate its platform and its first technology adopter Euro Exchange Securities UK Ltd. into the Stellar network. This addition to the Stellar network will bring access to currency markets of South and Central America,UK and a number of EU countries.
Novati (ASX:NOV) - is an Australian-based software technology and payment services provider. Novatti is currently working to integrate it’s platform into the Stellar network with the ultimate aim to build a global money transfer solution to provide cross border, cross currency and cross asset payments.
Pundi X - is an Indonesia based fintech company that provides POS device, debit card, multi-currency wallet that empowers individuals to buy and sell cryptocurrency at any physical store in the world. They say "buying cryptocurrency should be as easy as buying a bottled water."
MoneyMatch - is a Malaysia based fintech startup that provides a fully-digital peer-to-peer currency exchange platform for customers to transfer and exchange foreign currencies with complete ease and at great value. The company plans to integrate with the Stellar network and enable pay in and pay out from Malaysia.
Streami - is a Korea based fintech company that offers blockchain enabled cross-border remittance service and recently launched a cryptocurrency exchange. The partnership extends both on the exchange side and remittance operations.
Neoframe - is developing and marketing trading solutions for big brokerage firms in Korea and extends its business to blockchain based applications. Neoframe developed high performance centralized cryptocurrency exchange as well as secure wallet solutions and is working with big financial players. The company is planning to launch a remittance business for ASEAN countries (Thailand, Vietnam, Indonesia, Malaysia, Philippines, Singapore, Myanmar (Burma), Cambodia, Laos, Brunei) using Stellar.
SureRemit($RMT) - is a Nigeria based global non-cash remittances company. SureRemit leverages the Stellar blockchain platform to connect immigrants abroad directly with merchants that provide the services needed by their loved ones back home. With Remit tokens, immigrants all over the world can access digital shopping vouchers that can be spent on goods and services at accepting merchants wherever they are.
Cowrie Integrated Systems - is a Nigerian based Value Added Service Provider. Cowrie provides services at the intersection between telecoms and finance. Cowrie recently joined the Stellar network to bring novel fintech services to the African market.
Smartlands - is a Stellar-based platform designed to create a new class of low-risk tokens, secured by real, profitable assets in the real-world economy. Smartlands is designed to promote investments in the agricultural sector by allowing investment in individual projects, agricultural companies or indexes of groups of projects. These investments will be fully collateralized by agricultural real estate, other productive assets such as fruit or nut trees or, in some cases, the actual crop.
Klick-Ex - is an award winning regional cross-border payments system delivering financial infrastructure for emerging markets. It has been responsible for dramatic uptake in digital financial services in unbanked regions of the world, and lowering costs for banks, central banks and consumers in low liquidity currencies. Its key presence is in the Pacific and Europe, and it is a founding member of www.APFII.org processing more than 775,000 transactions per second, per billion of population (source).
Mobius - Mobius connects any app, device, and data stream to the blockchain ecosystem. Our simple and easy to use bidirectional API allows non-blockchain developers to easily connect resources to smart contracts and more. The Mobius MVP acts like Stripe for Blockchain by introducing innovative standards for cross-blockchain login, payment, smart contract management, and oracles. The Mobius Team includes David Gobaud, Jed McCaleb (Stellar.org founder), Jackson Palmer (creator of Dogecoin), and Chandler Guo (notorious Bitcoin & blockchain investor).
Chaineum - Chaineum, the first French ICO Boutique, will use the Stellar network for upcoming ICOs. “Chaineum is positioned as the first “ICO Boutique” in France, providing a range of end-to-end services to companies and international start-ups wishing to develop with this new funding mechanism. Chaineum is preparing 8 ICOs by the end of 2017, for European, North American and Asian companies, of which cumulative amount could reach € 200 million." (source)
Poseidon Foundation - Poseidon will simplify the carbon credit market with the creation of an ecosystem built on Stellar.org’s blockchain technology. This technology will prevent double counting of carbon and will be consistent across jurisdictions, making it easier for companies to deliver and measure progress towards their climate targets or other goals such as deforestation-free commitments.
Remitr - Remitr is a global platform for cross border payments, licensed in Canada. Remitr uses the Stellar network for international settlements for businesses as well as other payment partners. Remitr’s own payout network of 63 countries, comprising several currencies, is extended onto the Stellar network.
MSewa Software Solution (MSS) - MSewa Software Solution (MSS) Payments provides a one-stop digital payment service available across the Globe. MSS Payments aims at serving the consumers (Banked, Unbanked and Underbanked) with mobile banking facilities on the move from anywhere by transferring funds in their mobile phone.
PesaChoice - PesaChoice is a leader in international bill payment services for the African diaspora. PesaChoice aims at making international bill payment process easy, seamless, secure, with reasonable and competitive service fees, and up to date technological advances.
SendX - Singapore based SendX, in partnership with Stellar, is the better way to move money worldwide. The SendX team believes that the future of transactions is decentralized and distributed, bringing true equity to everyone across the value chain.
VoguePay - VoguePay, with offices in the United Kingdom and Nigeria, is partnering with Stellar to become the cheapest and most efficient way to send money between the United Kingdom and Nigeria. In the coming months, they expect to expand this service to other selected African countries.
HashCash - Hashcash consultants build financial solutions for banks and financial institutions over blockchain. We leverage the Stellar platform to build products that vastly improve the remittance and payments experience for banks and their customers. Transfers happen lightning fast at a fraction of current rates and operational cost is significantly reduced. HashCash is headquartered in India, with operations across South Asia and the Gulf.
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Stellar Lumens vs Other Cryptocurrencies
Lumens vs. Bitcoin: Jed McCaleb spoke at Distributed Markets in 2017 about the advantages, but more importantly, the disadvantages of Bitcoin. Listen to the talk here. Jed said, “Bitcoin is this awesome innovation. The first thing it does is converts a real world resource, electricity, into a digital asset. So it takes something from the real world and puts it into the digital realm. The second thing it does is provides immutable public record. It’s basically a database that everyone can see but no one change arbitrarily… That’s great, Bitcoin solves the double spin problem [ of proving possession and transmitting volume]… [However, to fix the problems of bitcoin] you might think well maybe we’ll just kind of keep adding [software] to Bitcoin until we get there, but that’s not really the way software works. You want to have the design from the beginning and solve these simple issues. Bitcoin was designed to be a new currency, it wasn’t really designed to be this unifying universal payment network. So that’s what Stellar does. It solves these three remaining issues.”
Lumens vs. Bitcoin #2: According to wired.com, "Bitcoin mining guzzles energy - and it's carbon footprint just keeps growing." Wired says "Today, each bitcoin transaction requires the same amount of energy used to power nine homes in the US for one day... The total energy use of this web of hardware is huge—an estimated 31 terawatt-hours per year. More than 150 individual countries in the world consume less energy annually. And that power-hungry network is currently increasing its energy use every day by about 450 gigawatt-hours, roughly the same amount of electricity the entire country of Haiti uses in a year." Because Stellar is based on a consensus algorithm rather than mining, it takes much less energy to run the Stellar network. The Poseidon Foundation decided to build their platform on Stellar rather than Ethereum or Bitcoin because of this (twitter source).
Lumens ICO tokens vs. Ethereum ICO tokens: According to Stellar.org, "traditionally, ICO tokens have been issued on the Ethereum network in the form of ERC20 tokens. ERC20 tokens are easy to issue and are infinitely customizable using Ethereum’s smart contracting language. However, recent events have highlighted and exacerbated some weaknesses of the network, including slow transaction processing times for the network during ICOs and increasingly expensive gas prices (by fiat standards) for transactions and smart contract execution. Moreover, many organizations require only basic tokens; they adopt the risk of Ethereum’s Turing complete programming language without taking advantage of many of its benefits."
"While Ethereum has the most expressive programming capabilities, we believe Stellar is the best choice for ICOs that do not require complex smart contracts. Stellar’s primary goal is to facilitate issuing and trading tokens, especially those tied to legal commitments by known organizations, such as claims on real-world assets or fiat currency."
Stellar vs. Ethereum #2: The median transaction time on Stellar is 5 seconds, compared to approximately 3.5 minutes on Ethereum (source). Stellar has a negligible transaction fee (.00001 XLM ~= $0.0000002) with no gas fee for computation, while depending on the complexity of the computation, the median cost for a transfer on the Ethereum network is $0.094. Security: While both Stellar and Ethereum run on a decentralized network, the Stellar network has fewer security pitfalls. Stellar uses atomic transactions comprised of simple, declarative operations while Ethereum uses turing complete programming capabilities which produces less auditable code and greater risk of exploitable vulnerabilities (source). Recently, a security flaw in the Ethereum network froze millions of dollars. According to Mobius ariticle written by David Gobaud, "On November 6, 2017, Github user deveps199 'accidentally' triggered a bug in Parity, a popular Ethereum mult-sig wallet, that froze more than $152 million in Ether across 151 addresses. The bug impacted several token sales including Polkadot, which has had ~$98 million out of its recent $145 million sale frozen."
"Mobius had none of its ongoing pre-sale Ether frozen because we do not trust Ethereum’s Smart Contract based multi-sig wallets given the vast Turing complete attack surface and did not use one. Security broadly is one of the main reasons the MOBI token that powers the DApp Store is a Stellar Protocol token and not an Ethereum token."
Lumens vs. Ripple: According to Wall Street Bitcoin Exchange, "Many investors like to compare the company [Stellar] to Ripple, and there are a lot of similarities, being that some of the founders worked on the Ripple team. In what can now be looked at as another blockchain development drama that plays out on chat boards and in interviews all across the globe. Stellar declared they fixed Ripple’s problems with their hard fork, however, Ripple has failed to admit to any of the flaws in its design that the Stellar team has pointed out." The article concludes by saying, "We Choose XLM Over XRP For 2018. That is why we are going with Stellar Lumens over Ripple in our portfolio for the rest of 2017 and 2018. After holding Ripple for a long time this year, it just never seems to make the big break like other names with bigger market caps like Bitcoin Cash, Dash, and Litecoin have. While we are holding on most all our larger market caps, we feel that Stellar Lumens will be one of the break out coins for 2018."
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Conclusion
The stellar.org team is doing an amazing job making partnerships and pioneering the use of blockchain technology for various types of transactions. What we are seeing is a new technology that can actually be used to solve real-world problems. As a community, we need to continue supporting Stellar and we will quickly see it power transactions across the world. What are your thoughts about Stellar? What do you see in the future of Stellar? Any important news you want to share? Comment below.
submitted by chargingerman to u/chargingerman [link] [comments]

Crypto Recap March 6: BTC Sellers Take Control, Support at $10k Back in Focus

Market Summary
As seen in CoinLive News Terminal.
A reality check for crypto traders, as the return of Bitcoin sellers sent a reminder of the state of affairs in the market. An environment dominated by unconvincingly feeble buy-side interest as we've been flagging up in recent times, with Google searches for Bitcoin and other related keywords at depressed levels, where a Bitcoin transaction takes one block to confirm and with a network value assigned to Bitcoin incongruent to the number of transactions through the network.
It looks as though the damage done to the multitude of retail accounts buying into the hype of the irrational exuberance in December has forced many to jump ship on the idea of re-engaging in buying cryptos even at current discounted prices. Throw into the mix the unclear regulatory landscape, and the absence of sufficient institutional capital flows, not yet coming in the amounts to make a distinctive difference, and it's easier to understand why the overall interest in cryptos has been on the decline.
Scanning through the top cryptos, as repeatedly mentioned, Bitcoin remains the magnet the rest of the Alts complex follows, and as a result, the 6% drop in BTC value led to similar negative percentage moves, with the exception of Vechain, up 4%. The total market value saw a slide from near $470b to currently stand at $440b. Despite the reduction in Bitcoin prices, the asset's dominance holds steady above the 40%, highest in 2018, which firms up the notion of a Bitcoin cycle phase.
* Headlines below are listed in chronological order, as seen in CoinLive News Terminal
Top Headlines Industry / Regulations
Top Headlines Crypto-Asset Fundamentals
Key Events on Top Cryptos for Mar 7 (Wed)
submitted by Ivo333 to BitcoinMarkets [link] [comments]

Five biggest Bitcoin disasters of all time; read why should not invest in virtual currency

The frenzy around world's biggest virtual currency, Bitcoin, has reached a level where it's impossible for you not to think about investing in it. Every day Bitcoin is setting up a new benchmark, luring you to become a part of this unpredictable financial cycle. At the same time, some financial institutions such as JP Morgan Chase and Berkshaire Hathway have debunked the "bitcoin mania", calling it a "fraud" and warning people against falling for the "Bitcoin trap". Being the most popular and an unregulated, or independent currency, Bitcoin is vulnerable to online sharks - hackers - waiting for the right time to dig in their claws to steal money. A recent example: hackers stole over $80 million in Bitcoins by breaking into Slovenian-based virtual currency mining marketplace NiceHash on Wednesday. As per Coindesk, a similar virtual currency exchange, one third of the two third Bitcoins mined are lost forever. Reuters says more than 9, 80,000 Bitcoins have been stolen from exchanges since 2011, roughly around $1, 57, 780, 04900 as per the current price. The reason for disappearance can be anything like hacking, or hardware failure. So is Bitcoin a monetary revolution - and you must be a part of it - or should you keep a distance? Bitcoin advocates swear by its anonymous founder Satoshi Nakamoto's super complex algorithm called Blockchain, an online distributed ledger system that maintains the data related to every single Bitcoin transaction. Bitcoins are stored in an open online decentralised ledger where every single transaction is verified by the cryptocurrency miners spread all over the world, competing with each other for a bitcoin reward. Every miner can access the ledger and the system reflects each small development. They say the system is impossible to hack as it's not centralised like Federal Reserve Bank of the US, or any other central bank. The mainstream institutions pose the same argument saying since there's no solid system to back it up if things go haywire, so it's not reliable. In entirety, it seems like a zero sum game. But before you take the plunge, read these five biggest financial disasters associated with Bitcoin that pose serious questions on its reliability.
Silk Road that was full of rocks Ross Ulbricht, the pseudonymous proprietor of the website Silk Road, used Bitcoin for illegal transactions in drugs and arms. For two years between 2011 and 2013, Silk Road became a favourite online marketplace - completely anonymous from law enforcement agencies - for drug mafias, and a headache for authorities. People sold drugs worth millions on the website, and all transactions were done using Bitcoin. Drug mafias could easily buy any contraband imaginable at a single platform, just like Amazon or eBay. Within months, the website became the leader of the "darknet", with over 900,000 users and the annual turnover of $1 billion. Ulbricht was arrested in October 2013, and the site was shut down. But soon, it was surpassed by similar "darknet" websites that operated secretively, using domain names like .onion. Ulbricht was convicted for life on drug trafficking, criminal enterprise, aiding and abetting distribution of drugs and money laundering.
Instant rise and fall of BitInstant The chief executive officer (CEO) of Bitcoin exchange, BitInstant, Charlie Shrem, a 27-year-old young ambitious entrepreneur was fascinated by the idea of having a currency with no third party control after he heard about it from a friend at the age of 19 in 2011. After he bought a couple of bitcoins - at a dirtcheap price at that time - he started Bitcoin exchange from his home and soon caught the attention of young investors like Winklevoss brothers who pumped in over $1.3 million in his company. It was a meteoric rise for, and so was its fall. After he moved to a nice office with over 30 people working for him, the company partnered with giants like Walmart, Walgreens, and Duane Reade where anyone could buy Bitcoins through BitInstant. The business was good and growing with revenue reaching over $1 million in a month, but greed has no limit. Shrem started facilitating transactions on 'darknet' leader Silk Road, and soon he was in the FBI net. After he was arrested in 2016, he pleaded guilty in the court. He claimed he facilitated one customer, BTC King owner Robert M. Faiella, whose customers (or drug mafias) were using Silk Road. They both were accused of the sale of Bitcoins worth $1 million to Silk Road. Shrem was sentenced to two years in jail. This incident sent shockwaves in the Bitcoin world, and people started associating the virtual currency as a means to launder money.
Mt Gox's $460 million 'gift' to investors Tokyo-based Mt Gox was another large exchange company for the virtual currency that met the same fate as BitInstant. The company had already lost over 80,000 Bitcoins, as per the Daily Beast, when Mt Gox CEO Mark Karpeles bought it from Jed McCaleb in 2011, but Jed hid these details from Karpeles. Initially started as an online space for trading of cards for a game called 'Magic: The Gathering', Mt Gox soon shifted to Bitcoin trading. The company was in trouble from the start, but Karpeles kept the secret under carpet for long. February 2014 brought doom for Mt Gox when Karpeles informed the authorities that over 850,000 Bitcoins worth $450 million had disappeared; hackers must be super rich if you compare it with current Bitcoin price. After this, people across the world started believing that perhaps Bitcoin needs to be regulated like fiat currencies to rid such fiascos. Karpeles was found guilty of the improper use of electronic funds and embezzling a total of $2.7 million of customer funds. 'WannaCry' wreaked havoc in 150 countries WannaCry virus hit computers of major corporations in over 150 countries in May this year. Panic spread across the world as message saying "Ooops, your files have been encrypted!" popped up on the compromised computers. The cryptocurrency faced another backlash when hackers demanded "ransom" money in Bitcoins to open the encrypted files. The hackers sought $300 ransom in Bitcoin from every compromised computer, giving people three-day time failing which they threatened to delete the locked files. Bitcoin allows users to make anonymous transactions and remain anonymous. This makes the system sophisticated to crack in case of such attacks, and equally favourable to cyberattackers.
$80 million Bitcoin heist at NiceHash Bitcoin mining marketplace NiceHash reported on Wednesday that hackers stole nearly $80m in Bitcoins from the exchange. Ever since the company informed the law enforcement agencies, the operation has been stopped and users have been told to change password and other personal details. It was "a highly professional attack with sophisticated social engineering", NiceHash head of marketing Andrej P Skraba told the Guardian. The company has so far lost around 4,700 Bitcoins worth about $80.02 million at current prices. The official website of the exchange says the service is currently unavailable and that the matter is being investigated. "Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days. In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency," the company said in a statement.
submitted by mjayrocks_7 to u/mjayrocks_7 [link] [comments]

Should one make sure to stay away from the next "Big Secret Bitcoin Project" by Mr Jed McCaleb?

As the clear pattern now emerging, I am just wondering if to create a project and then make sure that it dies, is the way Mr. Jed McCaleb prefers to do things in general? Here is the pattern and why I am wondering:
  1. He created MtGox and soon left it (sold it). As we now know, MtGox became a number one disaster and a major failure for the whole Bitcoin community and its supporters/investors.
  2. He co-created Ripple network and (again) soon left the team about a year ago. BUT, as Ripple began gaining some solid grounds, Mr. McCaleb now decided to practically devalue the XRP (the native Ripple network currency) by selling all of his holdings and thus artificially driving the XRP market price down to next to nothing. This really comes out as "My way or no way", as if he was expecting the project to die after he left.
  3. Today, he is working on a new "Big Secret Bitcoin Project". So, would it make sense to assume that this new project will be done in some buggy, unfinished, basic "proof of concept" manner (as in the past) and that he will then either sell it oand take a big steak in it (..in order to to veto it later, if he feels like it)?
submitted by Ponulens to Ripple [link] [comments]

Ripple XRP: THEORY About Jed McCaleb’s XRP & Price Action ... RIPPLE NEWS Jed McCaleb... about RIPPLE & STELLAR - YouTube Jed McCaleb Dumping XRP - Or Just Selling Assets he Got For Free XRP Selling by Jeb McCaleb - Mike Bloomberg Crypto Regulations - IRS Crypto Summit - BitGo Harbor Jed McCaleb about XLM Stellar, Blockchain future, Stellar ...

Jed McCaleb, the co-founder of Ripple, has reportedly sold over $175 Million worth of XRP tokens. The possession of such resources relates to the period when McCaleb awarded with 9 Billion XRP. McCaleb mentioned that his sale doesn’t seem to have caused a significant impact on the price levels of XRP. Jed McCaleb, the co-founder of major cryptocurrencies Stellar and Ripple, is thought to be selling off his Ripple tokens (XRP) every day, earning some USD 100,000 now that XRP is in the midst of a huge rally. When Ripple was founded, McCaleb received XRP 9 billion. In 2014, he announced his intentions to dump all of his XRP on the open market; this caused XRP’s price to crash 40% in 24 hours ... Jed McCaleb wears many, many hats. Before he co-founded Stellar (of which he is the CTO), he also founded and served as CTO of Ripple until 2013. Even earlier than that — which goes back to the very origins of cryptocurrency — McCaleb founded the now infamous Mt. Gox after reading about Bitcoin online, creating the wildly successful (and then wildly unsuccessful) first Bitcoin exchange in ... Ripple Price Analysis: Ripple's Co-Founder Jed McCaleb continues dumping his XRP holdings Cryptos Sep 16, 19:40 GMT XRP has been struggling to follow other major coins during 2020. A publication in Medium speculates on the cause behind the price depreciation that XRP has seen over the past 3 years. Written by a user who only identified himself as CryptoWhalle, the publication theorizes that the downward trend from XRP is a consequence of sales by Ripple‘s co-founder Jed McCaleb.. As reported by CNF, McCaleb was Ripple’s CTO until 2013.

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Ripple XRP: THEORY About Jed McCaleb’s XRP & Price Action ...

Heute sprechen wir über folgende Themen: Bitcoin-Gebühren schießen in die Höhe, Tezos (XTZ) will Chainlink (LINK) Oracles nutzen & Ripple Co-Founder Jed McCaleb XRP Abverkauf. 1.) Bitcoin ... Your stellar starts with xlm stellar lumens a xlm airdrop. The Jed allows you to safely xlm akon and McCaleb your xlm price prediction, along with other Bloc... Jed McCaleb Dumping XRP - Or Just Selling Assets he Got For Free Love For Crypto. Loading... Unsubscribe from Love For Crypto? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 17.8K ... acompanha matéria em www.startupi.com.br BITCOIN DUMP THEN BIIIG PUMP!!! CHAINLINK & CARDANO will do something CRAZY! [crazy price targets..] CHAINLINK & CARDANO will do something CRAZY! [crazy price targets..]

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