After «Black Thursday» investors withdrew from kryptomere about $2.7 billion in BTC

310 thousand BTC or about $2.7 billion in bitcoin brought with exchanges since March 12, when the exchange rate of bitcoin fell to $3,800, said the experts of the analytical service Glassnode in Twitter account. According to them, this is the largest length of the outflow of funds from the trading platforms in the history of digital money. RBC Crypto.

«Bitcoin the biggest watches for the duration of the outflow of funds from stock exchanges. According to our data, after the «Black Thursday» from the exchanges took more than 310 000 BTC,» wrote analysts.

He said that most cryptocurrencies since March 12 was taken from the stock exchange Bitfinex. It was derived 126 thousand BTC. Second and third place is shared platform Huobi and BitMEX, with them, investors withdrew approximately 95.5 thousand BTC in the same period.

This trend may be several reasons. The first of them — a distrust of trading venues. They can be hacked or funds may be stolen by employees. Also on investors ‘ decision on the withdrawal of cryptocurrencies could affect a series of failures and DDOS attacks, such incidents with well-known exchanges over the past few months happened at least five times.

Another possible reason is the reluctance of holders of the cryptocurrency to sell its stock at current prices. This opinion specialists Glassnode announced in mid-may. They noted that in April the reserves sites decreased by 10% compared to the maximum established in the beginning of the year.



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Twitter user intends to crack cryptococal brute force private keys

Bitcoin’s days are numbered, said the Twitter user MasterChangz who is trying to crack cryptococal the method of selection of the private keys. According to him, the main code of the digital coins will be hacked within 5 years, as the computing power of the equipment is increased by 900% every two years, RBC Crypto.

«Now I’m trying to pick up the key from the wallet with bitcoins, sorted on 600 million keys per second. Every two years the speed of selection increases approximately 10 times due to technological updates. Bitcoin’s days are numbered, he remained 5 years,» wrote MasterChangz.

Technically, to find the private key and to access the cryptocurrency possible. However, this will take time, said Bitcoin Core developer Luke Dashjr. According to his calculations, the hacking is simple, old bitcoin wallet using the graphics card of the middle class will take about 38593493520073954175290747912192 years.

«When the speed of the video card 600 MK/s will need an average of 38593493520073954175290747912192 years to crack the old bitcoin wallet. I’m not sure,» suggested Dasher.

Doubt about the success of MasterChangz also expressed the developer app Cash App Danny Decreaser. He believes that, even if the user will be able to increase the computing capacity of technology a billion times and pick up private keys at this rate 100 years, the chance to stumble upon a suitable and wallet hack will be 0,0000000000000000000000000000000000000000000001%.

In October, Forbes magazine published an article about the development of Google in the field of quantum programming can threaten kriptonyte. It is considered that the computing power of quantum computers will be enough to crack the algorithms underlying the cryptocurrency. But Peter Todd, Bitcoin Core developer, did not agree with this assumption.



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Digital Euro from the ECB: monetary sovereignty for the people and a threat to banks

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Dozens of countries involved in the study state of digital currencies (CBDC), some even carried out the first experiments. Along with USA and China the biggest currency area is the European Union. In January, the European Central Bank (ECB), which regulates the issue and circulation of the Euro, along with several other Central banks joined the working group for the study of CBDC. Now the representative of his management spoke in detail about the ECB. What problems stand in the way of the launch of digital euros, found DeCenter.

The ECB Executive Board member Yves Mersch in an address to the participants of the Consensus conference 2020, held from 11 to 13 may, said that a group of employees of it companies studying the possibility of issuing CBDC. The text of his speech published on the ECB website. The report on the results of this work should appear in the coming weeks, while Marsh said that this work is «mainly analytical».

It is worth noting that Yves Mersch was not sympathy for the cryptocurrency. He had previously called bitcoin a «risky alternative to Euro» and «threat to financial stability,» and last year opposed the project Libra. And yet the ECB is forced to reckon with the modern trends.

In January, the Bank for international settlements (BIS) has released a report which indicated that 80% of the 66 respondents, Central banks are studying the possibility or working on a government digital currency. In the same month, BIS has established a working group in this area, which included the Central banks of Sweden, Canada, Switzerland, England and Japan. A member of this Association is the ECB.

Digital Euro: not necessarily on the blockchain

Mersch noted that the issue of «commercial» CBDC available to a limited number of organizations (companies and banks), would be a «routine approach», whereas «retail» CBDC, in fact, the analogue of Fiat currency, would lead to «radical change». Further the performance of the official is dedicated to retail CBDC — in other words, «digital Euro».

According to him, retail CBDC can be based on the digital token, which is drawn in a decentralized manner. The ECB Executive Board member Yves Mersch avoided the words «blockchain» and «distributed registry».

Not all financiers agree that the CBDC must necessarily be based on the technology of the distributed registry. As explained last year, the head of the Central Bank of Chile Mario Marcel, the blockchain is needed to create trust in transactions between private agents. In the digital currency issued by the government, the trust incorporated by default, and need access to information about the transaction «more than obvious». So, in Uruguay in 2017-2018 did the experiment with the release of «e-peso» instead of the traditional national currencies without using the blockchain.

In addition, the background of the announcement stablon Libra from Facebook in the past year, experts of the International monetary Fund proposed the concept of «synthetic CBDC» (sCBDC), which is that the issue of money — the same tablconv — can engage private companies, but such issue must be provided by the reserves of Central banks, which should create confidence in the system. Analysts even cited existing examples of such cooperation — the national Bank of China requires the largest payment services AliPay and WeChat generate cash reserves that are stored in the Central Bank.

However, now most of the funds from the ECB comes in a digital format, but they are mainly used for lending to commercial banks. The main issue in the debate about CBDC, says Mersch, is whether the new currency available to ordinary people and non-financial organisations, i.e. whether it will become the replacement of traditional Euro.

In the European Union electronic payments unpopular

An important prerequisite for the creation of retail CBDC can serve as the substitution of cash payments to electronic. However, this is not the case of the European Union, Mersch said: «We see no indications that a significant portion of society wants to abandon a valuable and trusted cash benefits. But we are prepared that it will change.»

As the official said, in March of this year 76% of all payments in the Eurozone was made in euros, and the demand for cash exceeds the new level of GDP growth. So, in mid-March, the weekly volume of the new cash currencies reached €19 billion.

Note that these data coincide with the results of a survey by Deutsche Bank, conducted in January of this year, according to which the use of cash is rooted habit of the people of the United States and Europe (unlike Asia and especially China). However, Deutsche Bank predicts a decline in the share of cash payments due to pandemic coronavirus users like to contact with physical banknotes, because they carry bacteria.

Another issue is privacy, which can be reduced in comparison with the use of cash: «Some argue that digital currency may not guarantee complete anonymity. If this is true, it will inevitably raise social, political and legal issues».

Digital Euro a threat to the stability of the financial system

Yves Mersch explained that now the main focus of the study, the ECB aims to study the legal possibilities of using intermediaries to facilitate the turnover of CBDC and processing its transaction. The question is whether the commercial banks to create their own account with «digital Euro» or it could be done directly by the ECB.

Some believe that digital currency will help to strengthen the monetary sovereignty, as it will lead to the elimination of many intermediaries in the financial sector. The less middlemen, the safer the less Finance and the role of banks in creating money.

However, Mersch believes that the direct production of CBDC Central Bank and the disappearance of intermediaries, which are «economically inefficient and legally untenable idea». The ECB aims to stimulate an open, decentralized market, as it helps to «optimize resource allocation». History has shown that the concentration of considerable resources market in the hands of the Central Bank is ineffective, said the representative of the ECB. And this is what, according to him, will the situation in which all operations of the retail digital Euro will control ECB.

In the latter case, the number of accounts that are managed by the Central Bank, will grow from a few tens of thousands up to 300-500 million Also, the ECB will likely have to deal with the issue of consumer loans, which the Department never did. Commercial banks, in contrast to the ECB, able to offer various additional services those loans, payment of bills, or buying insurance.

If you create digital euros ordinary EU citizens will be able to exchange cash on new electronic currency, they will use the opportunity to remove the middlemen of banks: «If households are able to convert their Bank deposits to CBDC in the ratio of one-to-one, then they will be much more attractive to keep [the capital] in Bozrikova CBDC than on account of the Bank.»

Thus, the outflow of clients ‘ money would entail a systemic banking crisis.

How to reduce the risks to the financial system?

Mersch had proposed two possible solutions to the problems of digital euros. The first is to offer the digital deposits in euros at below-market rates, thereby creating incentives for non-banks to use «market alternatives» (probably refers to the traditional Euro), and not the deposits with the ECB. However, in times of crisis, this will require a «highly negative rates», which would entail public criticism and loss of confidence in the Central Bank.

Another option is the system with several «levels» of currency:

 Digital Euro «first level» can serve as a means of payment, as conventional money. For this currency the ECB will not have to set lower rates on deposits.

 The second level is «medium of value», which will benefit financial institutions, and ordinary citizens will set an unattractive rate of return. But this approach will require at the very least set different exchange rates, and the ECB has no such experience.

Anyway, European officials are showing interest in digital innovation and the changing needs of users of the money so that the study of the concept of CBDC will be continued, concluded at the end of the speech Yves Mersch: «We are rethinking their attitude to CBDC — at the level of the ECB, the Eurozone and the international banking community.» But without haste, he said: the ECB adheres to the principle «we serve technology — technology serves us.» Therefore, the digital currency will appear only when the European officials are fully sure that it is necessary to «ensure the stability of our currency.» The final choice of model CBDC is not just a technical issue, it will seriously affect the policy and financial regulation in the Eurozone.

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Staking in Ethereum 2.0: when will he appear and how much it can earn?

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On may 7-8, hosted an online summit Ethereum developers Ethereal Virtual Summit. The most attention it was given the coming upgrade of the network, the second by market capitalization of cryptocurrency — Ethereum 2.0. Among other innovations, the new version of the network will be the ability of staking earnings passive income for delegation of coins. The summit was announced the latest news about the team’s plans regarding the launch of the update. When Ethereum 2.0 will be available for staking coins, how much it can earn and what other opportunities will open before Ethereum users after upgrading to version 2.0, understood DeCenter. Spoiler: to get rich will not work.

Why Ethereum 2.0 will add staking coins

A brief educational program for those who do not follow the update of the project Vitalik Buterin. Ethereum has long been in need of updating and the main problem of the network scalability: the blockchain is overloaded, the transaction is slowing, and the cost of «gas» (Commission per transaction) increases. If you don’t update algorithm, consensus, the network will ever cease to be operational. To avoid this, developers have several years working to transition the network from a PoW algorithm in as 2.0, running on PoS. This should make the network more scalable, faster and cheaper.

In December of last year the network was implemented first phase of updates — Istanbul. And in April of this year I was running a test network of Topaz with the possibility of staking first users have already earned 1%.

In the PoS algorithm, which goes Ethereum, no mining, and validation occurs through the delegation of masternode coins network users. At the time of the delegation of these coins are frozen, and for the provision of its funds to validation blocks users receive part of remuneration. This is taking — this crypto is similar to a Bank Deposit. There are several types of staking: from income from dividends or mastered, but all of them important, not the power of the device, as in a PoW algorithm, and the number of coin miner. The more coins, the higher the income. For crypto investors staking is an opportunity to receive passive income from the blocked coins.

It is expected that the launch of staking:

 Will make the ETH prey more accessible, but less resource-intensive;

 Will make the network more protected and safer attacks will become too expensive;

 Will create a completely new infrastructure of steaks around the platform;

 Will provide increased scalability, which will create the opportunity for a wider implementation DeFi-protocols;

 And, most importantly, show that Ethereum is a developing project.

The first payments to steneram will be one to two years after the launch of updates

Minimum steak validator will be 32 ETH (≈$6092 for today). This is the minimum number of coins that should freeze the holder of the ETN in order to qualify for payment. Another prerequisite is not to disable your wallet from the network. If a user disconnects and goes into automatic mode, he loses his daily income. If at some point the steak will fall below 16 ETH user will lose the right to be a validator.

The Ethereum network must undergo many important stages before the coin holders will be able to earn on its store. Head of product strategy in a startup Ethereum developer ConsenSys Colleen Myers at the summit said that the Genesis block of the new network will not be produced until then, until the total amount of frozen funds will not reach 524 000 ETN ($99.76 million at the time of publication). So many coins should hold 16 375 validators with a minimum Deposit 32 ETH. Up to this point none of them will not receive any percentage of profits.

Myers noted that this event is not tied to a fixed time and depends on the activity of the community. All validators will have to freeze a considerable sum for an indefinite period in a new network without confidence in the growth rate of the coin. It is difficult to say how many people will want. The developers believe that it will take 12-18 or even 24 months. According to a fresh report ConsenSys Codefi, more than 65% of the 300 respondents of the owners of the ETN planning to use the opportunity of staking. This sample is certainly not representative, but it can be assumed that the majority of large holders of coins still to be willing to take the risk.

How much can you earn staking Ethereum

Developers have long been arguing about what the yield should be from validators Ethereum 2.0. Economic model the network maintains a level of inflation below 1% and dynamically sets the scale of remuneration for validators. The trick is not to overpay, but not to pay too little. Yields will be variable, as it depends on the number and size of steaks, as well as other parameters. The less frozen coin and validators, the higher the yield and Vice versa. This is a simple way to motivate users to freeze ETH.

In the October calculations Collin Myers, after the launch of the Ethereum 2.0 validators can get from 4.6% to 10.3% per annum as remuneration for his steak. At the summit he said that the first time after the launch of the Genesis block, it can be up to 20.3%. But the growth in the number of steaks yield will be reduced. So, if it is steak it drops to about 6.6%.

The above figures are not net return. They do not include the costs of equipment and electricity. According to estimates Myers, after the Genesis block the cost of maintaining the node the validator will be approximately 4.75% of the amount of remuneration. They will continue to increase as growth in the number of blocked coins and when the five millionth steak will grow to be about 14.7%.

Myers stressed that the yield will be higher in those who will work on their own equipment, and not to rely on cloud services. The latter, according to his calculations, at current prices, can incur a loss of up to minus 15% per year. This, he believes contributes to true decentralization.

At the end of April Vitalik Buterin said that the validators will be able to earn 5% per annum with a minimum stacking 32 ETH — ETH 1.6 per year, or $304 at the time of publication. However, given the cost of freezing funds, the real return will be at the level of 0.8%.

How to calculate the yield from staking ETH

The easiest way to calculate the expected yield of staking Ethereum is to use a special calculator. For example, online services or EthereumPrice Stakingrewards. The service takes into account the past profitability of the network as well as additional characteristics: the nodes in the network, the coin price, share blocked ETN and so on. Depending on these values, the profit of the validator can vary greatly.

For example, you block 32 of the ETN on the current price of the coins — $190, 1% of the coins locked, as Noda works 99% of the time. According to the calculator EthereumPrice, in this case, your return will be 14.25% per annum, or 4.56 ETH.

Earnings validator in the example above for 10 years, according EthereumPrice. Source.

Change data. You have the same steak, but the proportion of blocked coins is 10%. Now it’s your annual yield — total 4.51%, or 1.44 ETH.

Earnings validator from the second example in 10 years, according EthereumPrice. Source.

It is important that it yields without considering the costs. The real return will be much lower and in the second case can be negative. In addition, it is necessary to consider the fluctuation. Even assuming a yield of 14% in ETN, the yield in dollar terms can be negative in a bear market.

When will start the transition to Ethereum 2.0

Ben Edgington from Teku, operator Ethereum 2.0, at the last summit said that the transition to PoS can be launched in July this year. These deadlines unless a new delay, called and experts of the crypto currency exchange BitMEX, in his recent report on the transition of the Ethereum ecosystem to the stage of 2.0. However, on 12 may acne Buterin denied the ability to run an Ethereum 2.0 in July. The network is not ready and is unlikely to be launched before the end of the year. On 30 July will be 5 years after the launch of Ethereum. Unfortunately, to start the update for the anniversary, apparently, will not.

Full deployment will consist of several stages.

«This is my rough idea of how to look for the next ~5-10 years for Ethereum 2.0. The road map below reflects my own views, other developers may be a different point of view (I can change my mind)! Details, of course, can change as new information or the development of new technologies», — commented on the timing of network updates acne Buterin in March of this year.

Phase 0. Beacon chain. The «zero» phase, which could be launched in July this year. In fact, this is just a test network and test a PoS without economic activity, but it will use the new coins ETH and will have the opportunity of staking. The «zero» phase will test the first layer of the architecture of Ethereum 2.0 — Lighthouse. It is the customer Ethereum 2.0 on the Rust language, developed in 2018.

Phase 1. Sharding (Sharding) — the refusal of full nodes in favor of distributing the load among all the nodes (shards). This should increase network capacity and solve the problem of scalability. This is the first full stage Ethereum 2.0. Will initially be deployed with 64 shards. Because of sharding the network transition to a new state so difficult — the existing smart contracts cannot be transferred to the new network. So the first time, years probably, will simultaneously exist both networks.

Phase 2. State execution. In this phase you earn a variety of applications, and you can enter into smart contracts. This is a complete working network Ethereum 2.0.

After the second phase will be to work in parallel two network — Ethereum and Ethereum 2.0. Holders of coins will be able to translate ETN from first to second without the ability to translate them back. To stimulate network support issue coins in both networks will continue to grow until they are merged. Read more about the phases of the transition to 2.0 as can be read in the aforementioned report BitMEX.

As the upgrade of the network to Ethereum 2.0 will affect the market of staking and price coins

The transition of the second capitalization on the PoS coins will dramatically increase the proportion of staking on the market. Deposit 32 ETH is too large for most users. So expect a growth of supply in staking from the exchanges.

So, the launch of such service in November announced the largest Swiss crypto currency exchange Bitcoin Suisse. It will not have a minimum Deposit, and the Commission will be 15%. At the October analysts ‘ estimates Binance Research, the transition to the stage of Ethereum 2.0 can increase the coin value and the proportion of staking on the market twice, as it will make the ETH the most popular currencies in the PoS algorithm.

Adam Cochran, partner MetaCartel Ventures DAO and the developer DuckDuckGo, in his blog cited arguments in favor of the fact that the transition to the state of Ethereum 2.0 will be the «biggest event» of the stock market. He believes that a yield of 3-5% will attract the capital of large investors and fear loss of profit (FOMO) among retail investors will push them to active buying coins. Planned burning mechanism of coins in each transaction will reduce the potential oversupply.

However, experts BitMEX in the above-mentioned report believe that the network refresh will not be as important event as it appears to many, and will not have a significant effect on the rate of coins and the market staking. Initially it will be more testnet PoS system, not a full-fledged network. It would not be economic activity, and smart contracts, and interest on the steak will be paid immediately. Therefore, the majority of economic activity is still enclosed in the original Ethereum that will work in parallel with the new.

Stock exchange analysts stressed that because of the addition of staking the first time (short, in their opinion) a large number of ETN will be blocked in the network. Most likely, this will limit the offer for the coins and will lead to higher prices. However, this can also release some locked in smart contracts ETN, and then the price rises. The authors of the document do not believe that the demand for the coins will be long term and sustainable. To make this happen, PoS and sharding have to prove that they work consistently and provide the benefits for which the upgrade was started. But, if this happens, the network will face a wave of coins from the developers of smart contracts and DeFi-protocols. In any case, rapid changes can be expected. Full transition to Ethereum 2.0 will take years and will not be smooth — network outages are inevitable.

We also believe that hope for staking Ethereum as the next panacea for all problems of the coins and the market is not worth it. Most likely, the transition network at PoS will not have a significant impact on the market staking, but may have a positive effect on the price of the coin. However, rely on rally ETH in anticipation of this too optimistic.

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Media: digital the yuan will start ahead of schedule due to US sanctions and COVID-19

The Chinese authorities accelerate the development and implementation of their own digital currency to stimulate the economy after the pandemic COVID-19 and possible sanctions from the United States. This reports the Global Times.

The publication gives a review insider of a blockchain-industry of Beijing, Cao Yin:

«Though the United States and did not include Chinese financial firms to your list States pose a serious threat to Chinese institutions and the status of the yuan in the international arena. In this regard, national digital currency of China may be running ahead of schedule, to counteract possible action by the United States.»

He added that the digital currency will help in fight against economic crisis after the pandemic COVID-19. The money will come from the sectors of the economy and firms that need the most support.

The official launch date of the digital currency is not installed. The head of the people’s Bank of China And Gan announced on the Agency’s website, at the moment its tests are carried out in four cities. He added that the digital currency will be used during the winter Olympics in Beijing in 2022.

Earlier media reported that the digital yuan will distribute Chinese officials in may.

To develop the project also connected the Agricultural Bank of China and Alipay.


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In China can legitimize the transfer of bitcoin by inheritance

For consideration by the authorities, China has received a bill that proposes to include in the list of inherited assets, Internet property and cryptocurrencies. It is reported Bitcoinist.

Presented at the annual session of vsekitajsky meeting of national representatives of the change may enter into the Civil code, together with regulations on the protection of private property and contractual obligations.

The current version of the law of inheritance applies only to civil income, property, cultural relics and copyright.

With the entry into force of the amendments, the digital assets will fall into the list of inherited property. The latter will be distributed according to the will, or the accepted norms of succession.

According to managing partner, Primitive Ventures Dowie van, owners of bitcoins need to take more care of the secret keys, rather than on the laws.

«I would prefer protection by key, not by the law. The problem with the law is enforcement, not legislation,» she said.

Professor of Renmin University of China’s Lixin Zhang in an interview with Chinese TV channel CCTV said that the old version of the bill did not meet the needs of modern society, which increased in conditions of industrialization and the onslaught of technology.

We will remind, in July of last year, the court of Hangzhou has recognized bitcoin as «virtual property». A month ago, a court in Shenzhen ruled that Ethereum is protected by the law of property, and citizens are not prohibited to own and operate a cryptocurrency.


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Binance has delistyle credit tokens FTX, following a significant loss of users, and a month later added clones

In late March, the bitcoin exchange Binance removed from listing credit tokens FTX site. Then Chanpen CZ Zhao stressed that users do not understand these tools, so Binance forced to defend them. On 12 may, she added in a listing similar tokens under its brand.

Shortly before the delisting, the group of customers Binance lost more than $1 million on the liquidation of credit tokens. Users believe that the problem was on the side of the court.

ForkLog understand what a credit token, what happened to Binance and why exchange in the end changed its position.

«We’re sorry to hear of your loss»

Operator derivative exchange is a company FTX FTX Trading LTD registered in Antigua and Barbuda (offshore area, in which you can online gambling). Its founder is a former trader Jane Street Capital, Sam Bankman-fried. In 2017, he founded the cryptocurrency Alameda Research firm, currently managing a portfolio of digital assets at more than $100 million From the FTX also has a U.S. branch, but the credit tokens left.

Credit tokens BULL, BEAR, and ETHBULL ETHBEAR from FTX appeared in the listing Binance in January 2020. They are allowed to earn the triple x’s on the rise or fall of exchange rate of bitcoin and Ethereum. For example, each 1% of growth/fall rate of the BTC BULL/BEAR accordingly grew by 3%. Later was added the same token to EOS and XRP.

However, on 12 March about 15:00 GMT tokens are no longer correlated with BTC, ETH, EOS and XRP in proportion and x3 dropped in price from 30% to 65%, which led to the liquidation of positions at a number of clients.

They told ForkLog that with the growth EOSBEAR from $32 to $177 (in 5.5 times), EOSBULL fell to 46 times from $72 to $1,57. The price of the underlying asset EOS changed only in 2.4 times, from $3,60 to $1,50. Similar reports can be found in Twitter.

BULL/USDT fell more than 40% when the underlying asset BTC have changed in just a couple of percent. ETHBULL declined by more than 65% when the change ETH 9%. XRPBULL lost more than 31% by reducing the price of XRP is less than 2%.

Affected users have created a Telegram-chat in which discuss ways of solving problems and the possibility of obtaining compensation. At the time of publication it is 96 users. Estimates of the owner of the Telegram-chat, at least 200 people lost more than $1 million.

«In most cases, a lost an average of $5000-6000. I lost about $30 thousand. There are people, the damage of which amounted to $86 thousand, $100 thousand», – he said in comments ForkLog.

After user complaints Binance attached warning message for each pair with FTX, focusing on the dangers of trading on those markets. Also from the site site disappeared mention strict adherence to FTX tokens for the price of the underlying asset in a ratio of X3.

Users managed to make a screen copy of the message on the listing in the online archive, but at the moment, this snapshot is unavailable. If you compare the text in the image and the current version of ads, in the last paragraph about missing price moves in strict proportion x3.

A screenshot of the version page of 7 March 2020

A screenshot of the current version of the page

The customer service representative in response to the appeal of one of the victims said that the price of credit tokens depends on the «trading behavior of all users» and not from price movement of the underlying asset as it was stated originally.

A letter from the representative Binance one of the clients of the exchange

«We’re sorry to hear of your loss. However, the price depends on the trading behavior of all users, which can be seen in the result of the fact that they buy/sell orders ordered, or depends on the Maker and the Taker in our platform».

March 28, two weeks after the incident, Binance has delistyle all tokens FTX. Chanpen Zhao explained the decision by saying that users do not understand the principles of operation of the asset.

«We found that many users do not understand the specifics of the data token and don’t pay attention to pop UPS with a warning. FTX-tokens are among the most actively traded, but to protect users in the first place».

CZ added that although these tokens «rarely lead to the elimination, they eventually depreciate and therefore are not intended for long-term storage».

In response to the request of the affected technical support FTX announced that the credit tokens do not work as a static leverage x3 and sometimes their price is no longer correlated with the price of the underlying asset. In FTX noted that knew about the problem with 2019.

In FTX explained that retention of the leverage and avoid liquidations in need of rebalancing. If ETH is growing at 10%, the credit token will increase 2.53 times. If ETH will fall by 10%, the credit token will fall by 3.85 times. For rebalancing are made of purchase/sale of ETH, this allows you to control risk and to return to three time the shoulder, said representatives of the exchange.

The rebalancing occurs daily at 00:02 UTC or during the day if leverage exceeded x4. Thus, depending on the time of the last rebalancing, the movement of credit tokens can deviate from the stated shoulder.

New or well forgotten old?

12 may Binance has announced the launch of its own credit and token BTCUP BTCDOWN. On the American site Binance US these tools are not available.

«Binance Leveraged Tokens (BLVT) was developed after careful consideration of the requests of users and evaluation of existing credit products. They provide lower risk and fee than other tokens with a credit shoulder.»

New tokens drew the attention of the crypto analyst edition The Block Larry Cermak:

«We’re not going to talk about what Binance salistie your own credit tokens, six weeks after the delisting of credit tokens FTX? And that, according to CZ, it was done to protect users?»

Cermak noted that the listing BLVT was made on 11 may, the day of Kalinga.

«Tokens were quietly released on the day of halving to avoid unnecessary conversations, and CZ was ashamed to even tweet about it», – said Cermak.

According to Binance, tokens BTCUP and BTCDOWN do not support fixed leverage and adapt to changes in the nominal value of positions indefinite contracts in the range of values between x1. 5 and x3. This property of the asset supposedly allows you to «reduce the influence of a lateral trend and not allow the price to exceed the market fluctuations.»

«Target leverage is constantly changing and is hidden from external observation», – said in a press release.

On the day of start-up credit tokens Binance representatives FTX condemned the opaque mechanisms of the exchange:

«Maintaining an open financial ecosystem with competitive markets and transparent products is critical to their effectiveness. Nothing is perfect, but sometimes it means the difference between a product that is sold at a reasonable price, and the product of undue cost or the difference between a product that you can use to your advantage, and that which is not.»

This view was supported by a well-known researcher su-Ju:

«The recently launched credit tokens Binance have indefinite rules of rebalancing, and this may be the cause of the accident. A third-party company will not be able to carry out the arbitration regarding the fact, true or false has been implemented rebalancing», said Zhu.

Administrator Whalepool.io conducted a comparative analysis of credit tokens Binance and FTX. He noted that every time when the underlying Fund is rebalancing, with the position fee is charged for financing, which reduces the net asset value (NAV) for its holder.

The expert added that because of the poor methodology of rebalancing is impossible to check the accuracy of tracking the net value of the asset, making it difficult for traders.

Comparative table of credit tokens from the Binance and FTX

«The worst in the credit Binance tokens that you just depend on the algorithm. You can’t check whether Binance charge any hidden fees – you just have to trust the algorithm. Binance is the sole Issuer of BLVT, that makes you wonder whether the low fee for the management of that exchange makes a market-making, and the opacity of rebalancing?»

Compensation and confidentiality agreement

In response to the request ForkLog representatives Binance announced that on March 12, the strong volatility of the market triggered a rebalancing token BULL/BEAR: they have deviated from their fair value and adjusted to the correct value with a delay.

The exchange asserts that, due to the considerable overload of Ethereum liquidity providers were not able to translate Binance credit tokens, so the demand for some trading pairs was not satisfied.

«Exchange FTX has agreed to pay a certain amount to users Binance who were holders or traded tokens BULL/BEAR that day. In accordance with this decision within 14 days Binance was credited to the users account tokens BUSD in the amount equivalent to the cost of credit token in the accounts at the time of delisting», – reported in Binance.

They also added that it had repeatedly warned clients of the high risk of transactions with the credit tokens.

«We always inform users about the necessity of careful transactions. However, users must understand the risks and take responsibility for their losses as a result of their trading strategy and changes in the market price of the underlying asset».

The owner of the Telegram chat for the affected traders told ForkLog that users have received offer from Binance compensation in the amount of 10% -30% of the losses and the provision for one or two months of VIP access to the services of the exchange.

Later Binance sent to the victims of its representative, ostensibly to resolve the problems. Customers were asked to fill in a form with data ticket, the amount of loss, email address and nickname in the Telegram. According to the interlocutor ForkLog, they promised 100% refund.

«From the Binance were set conditions that we must sign a non-disclosure agreement (NDA) after the adoption of the adjustments. Many participants began to quiet, a request to delete the ticket number from our list, we realized that they signed the contract.»

The representative of the Binance in Russia Gleb Kostarev ForkLog confirmed the presence of NDA agreements:

«Yes, the users were asked to sign an NDA to confirm their consent to the settlement of the situation and the amount of compensation».

Later, the owner of Telegram chat found that many of the signatories have not paid. As explained Gleb Kostarev, this situation could arise for users who violate the terms of use Binance:

«Yes, [user, signatory the NDA, did not receive compensation, if during the audit it was discovered, that the user has violated our terms of use, for example, is linked to your account not for themselves but for a third person», – he explained in comments ForkLog.

The user initially received a letter from the representative of the exchange offer to compensate him 5000 USDT, but subsequently this amount was reduced in 10 times – up to 545 USDT. The total damage of the user from incorrect rebalancing of credit tokens according to him, amounted to approximately $30 thousand.

A screenshot of the letter from the representative of Binance client exchange

A screenshot of the letter from the representative of Binance client exchange 2

At the moment the client has not received any compensation:

«There have been many instances in the group: people first took an intermediate gift, and then they were sent. I didn’t get anything: if I do accept it will lose the right to claim the full amount».

Lena Jess


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Acne Buterin: stabilini can successfully pass a value between blockchains

Ethereum co-founder Vitalik Buterin invited developers tablconv to add as uscaca their use as «instant bridges» between the different blockchains. It is reported by Cointelegraph.

In dialogue with Baleriny leading bitcoin podcast, Reckless Review UDI Wertheimer noted that such options are actually already there, if you use the infrastructure of cryptocurrency exchanges. Thus, the user can Deposit an Ethereum version USDT on Binance and make instant withdrawals in the same stabilise in its implementations on Tron or Omni.

Buterin explained that implied they «bridge» should not rely on bitcoin exchange:

«I would be satisfied if the developers USDC and other stable coins were able to agree on a standardized API (probably creating a «bridge contract», ERC); to not have to spend time authorization on Binance to move the coins.»

In this remark Wertheimer argued that decentralised solutions need more such shapes as he acne, whereas most users are very puzzled how to operate the system and how they are interrelated.

A different perspective on this issue from the technical Director Bitfinex Paolo Ardoino. He believes that lack of interoperability is a problem that affects all digital tokens, but it should be addressed by third-party developers:

«There are many projects that are already working on a solution… Tether advises projects that try to solve this problem. We play an active role in this process, but do not write code».

According to Arduino, the most important challenge faced in the development of a Protocol for interoperability, the need to more fully understand all the security implications of each of the blockchains.

Confirmation of this position acts as the recent incident with the suspension of work provided by the bitcoin token tBTC due to a detected vulnerability, although this was preceded by six weeks of the audit.

Behind the development of the Protocol Syscoin Bridge, which provided compatibility networking Ethereum and Syscoin, Jagdip Sidhu confirmed how difficult it is to have developers of such interoperable solutions.

«Projects are easier to make sacrifices to speed-to-market, or to establish basic interoperability for market trading mechanisms or liquidity providers. All only to eventually experience many «discoveries» or to detect obstacles due to regulatory and legal requirements.»

Sidhu, in his words, is open to cooperation with issuers tablconv in the implementation of such decisions. However Ardoino believes that developers of such «bridges», as Syscoin Bridge, you can implement them yourself.

«Tether is on the public block chain, and the community can create and use these crosscanonby products to move the Tether from one network to another. In this-and the beauty», — concluded the CTO Bitfinex.

We will remind, in April, Bitfinex has announced the addition of listing crosscanonby token pBTC for the formation of gateways between the blockchains of bitcoin and DeFi-ecosystems on the basis of the EOS and Ethereum.


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For growth, bitcoin needs to gain a foothold above $9100

Bitcoin is currently adjusted to a level of $8’645, coming up from the bottom to $9k, but the price needs to break resistance $9’100, to avoid a significant decline.

Bitcoin price continued to decline below the support level of $9’000, dropping below the 100-hour simple moving average and is trading to new multi-week low of $8’645.

Currently, he corrected higher and is trading above 8’ $ 800. The bulls pushed the price above level 8’ $ 900, but struggled trying to overcome resistance in 8’975 — 9’000 dollars. It seems that the level of Fibonacci 50% from downward movement from a high of $9’307 to a low of $8’645 acting as resistance.

There is also a key bearish trend line formed resistance around $8’950 on the hourly chart of the pair BTC/USD. The trend line is close to the Fibonacci correction level of 61.8% of the downward movement from the high of $9’307 to a low of $8’645.

Technical indicators: 1-hour MACD is currently losing momentum in the bullish zone; the relative strength Index (RSI) for BTC / USD is increasing and is slightly above the level 50.

The scenario of growth

More importantly, the 100-hour simple moving average, located near the trend line and 9’, $ 100. If the bulls manage to overcome resistance trend line, 100-hour SMA and $9’100, there is a possibility of strong upward movement.

The next key resistance is near the level 9’ $ 330 (key area breakdown), above which the price may continue to grow in the direction of the resistance 9’800 and 9’950 dollars in the short term.

Scenario reduction

If the price of bitcoin will not be able to overcome the resistance 9’ $ 100 and 100-hour SMA, it can resume the decline. Initial support is visible at the bottom around 8’ $ 800.

A downward break below the support 8’ $ 800 could push the price to levels 8’650 8’ $ 500. Any further losses can perhaps open doors to more significant reduction in future sessions up to 8’200 8’000 dollars.



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Monero developers have released a new version of the client

Confidential cryptocurrency Monero moves to a new version 0.16.0.0 called Nitrogen Nebula with Protocol support Dandelion++.

The team reported that the new version of Monero fixed many bugs and improved network performance. In particular, thanks to the technology Bulletproofs increased the speed of customer verification and confirmation of transactions from devices Ledger and also reduced the amount of data in the blockchain. In addition, Nitrogen Nebula 0.16.0.0 supports Dandelion++ Protocol distributes transactions in the network so that it was impossible to track the origin of the transaction and enter a specific IP address.

On updating worked 49 developers. New version available for download with the command line interface (CLI). Soon to be released wallet with a graphical user interface (GUI).

It is the privacy Monero is the reason for the removal of this coin from different cryptocurrency exchanges, aspiring to meet international standards on combating money laundering and the requirements of local regulators. For example, the exchange BitBay had planned to eliminate the XMR from the list of trading pairs in February, and in 2018 Monero was removed from the Japanese stock exchange Coincheck under pressure from the financial regulators of the country.

The developers of Monero think that the recommendations of the Network on struggle against financial crimes of the USA (FinCEN) should apply only to regulated assets and not to anonymous cryptocurrencies.



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