October 1, 2018
QUOTE OF THE DAY 
“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value”
- Eric Schmidt
| COIN | PRICE | 24H |
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| BTC | $6,607.892398 | -0.28% |
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| ETH | $230.014937 | -2.3% |
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| XRP | $0.567018 | -6.56% |
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| BCH | $534.084174 | -0.85% |
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| EOS | $5.665556 | -3.08% |
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*Information as of 11:00 AM EST
Huobi Denies EOS Voter Collusion Following Leaked Documents
You scratch my back...
Last week, Twitter user @MapleLeafCap released leaked documents that alleged the popular crypto exchange Huobi was colluding with other EOS block producers to do mutually beneficial actions.
Supposedly created by Huobi employee Shi Feifei, the documents revealed two different allegations:
- Huobi and many other block producers mutually vote for each other to cement their block producer position.
- Huobi openly votes for a few block producer candidates in exchange for EOS returns.
These arrangements allegedly earn Huobi 1,116 EOS per day, which is over $6400 at current market prices.
This isn't surprising
To some, collusion among EOS block producers doesn't come as a surprise at all. This is because the EOS blockchain has a controversial structure that critics believe is centralized.
EOS runs on a Delegated Proof Of Stake (DPOS) consensus method which means 21 block producers are chosen by the votes of EOS token holders. Once chosen, these 21 block producers then validate transactions that run through the network.
On a decentralized blockchain this doesn't seem to be an issue, however, over 50% of EOS tokens are held by only 10 addresses. This means these top 10 addresses can control who becomes a block producer by placing far more votes than other addresses.
Commenting on the leak, Ethereum founder Vitalik Buterin shared his 'I told you so' on Twitter:
"Interesting! I mean, it was completely predictable and I did predict it, but I did not expect it to happen so thoroughly and so soon!”
Huobi and EOS community push back
Yesterday, Huobi denied the series of allegations and claimed that it does not do any financial business with other EOS block producers.
Though Huobi has yet to confirm or deny the authenticity of the leaked documents, some EOS enthusiasts believe that even if the documents are real, it doesn't matter because Block.one hasn't even started voting.
Meanwhile, other EOS supporters are calling the leaked documents FUD entirely and say that if collusion were to happen, the price of the token would have to rise significantly so block producers like Huobi can maintain the control they want.
At this time, an investigation is underway to understand the situation further.
New Stablecoins are Entering the Market, But Tether Still Dominates
A look at stablecoins’ market share
According to a report from digital assets tech firm Blockchain Luxembourg SA, Tether accounts for 98% of stablecoins’ trading volume and 93% of the total market value of all stablecoins. Although, stablecoins only comprise 1.5% of the total market value of all cryptocurrencies.
Here is a list of the number of Tier-1 exchanges the biggest stablecoins are listed on:
- Tether - 6
- TrueUSD - 5
- SteemDollar - 4
- NuBits - 2
- BitBay - 2
- Gemini - 2
- Paxos - 2
Stablecoins and competition
Competition is the backbone of economics. As it is in almost every industry, competition is good for stablecoins. With competition, the consumer/investor is the winner.
New stablecoins are flooding into the crypto market. Tether still dominates because of its first mover advantage. Don’t be surprised if Tether’s massive lead begins to shrink.
Tether’s issues have been well documented and are probably the inspiration of these new stablecoins that are being created. Competition will force Tether and all players to become more transparent, which is the most important feature of a stablecoin.
Malta Prime Minister Preaches Crypto’s Potential to UN General Assembly
Malta is probably the most pro-crypto nation
The small island of Malta is progressing towards becoming the blockchain hub of the world. Malta is by far the most friendly when it comes to regulating blockchain startups and cryptocurrencies.
Having such a small size and population allows a country like Malta to be able to adapt to and implement new technologies very quickly.
Malta’s pro-crypto policies have lured some of the biggest crypto companies and initial coin offerings to the country.
Malta’s PM tells the world
At the UN General Assembly, Malta Prime Minister Joseph Muscat preached to the leaders of the world the potential of blockchain technology. Muscat proclaimed the cryptocurrencies will inevitably become the future of money.
The PM insisted that the rest of the world follow Malta’s lead in establishing accommodating crypto regulations. If blockchains achieve adoption, they can disrupt major industries, according to Muscat.
Muscat told the UN General Assembly:
“I passionately believe technology revolutionizes and improves systems. This is why in Malta, we have launched ourselves as the blockchain island. By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money. More transparent it helps filter good business from bad business.”
Chinese Billionaire Investor Causes Controversy After Announcing He's Leaving Blockchain Behind
Turning the page
It seems Chinese (ex) Bitcoin enthusiast Li Xiaolai is fed up with the crypto scene.
Yesterday, the billionaire announced that on Chinese social media Weibo that he will no longer be investing in blockchain projects as he warned the community to avoid any projects that claim his involvement to attract investors.
Though he claims his departure is because of a "career change", others are speculating on the real reasons behind his decision.
Speculating on his departure
Following Li Xiaolai's announcement, the community began to speculate that the reason behind his departure is because of China's crackdown on initial coin offerings and crypto in general.
Others in the space believe that Li Xiaolai's departure is because the blockchain industry is plagued with scams and fraudulent actors.
Either way, though Li Xiaolai won't be investing in any blockchain projects moving forward, his fund still owns a significant amount of Bitcoin and other cryptocurrencies that are estimated to be worth over $1 billion.
- Hong Kong has become the latest nation to introduce an instant payments system as a fintech upgrade for retail payments in the country.
- Tron (TRX) announced that it will launch the world's first idle blockchain game on its network.
- Binance is set to launch a beta version of its decentralized exchange (DEX) by early 2019.
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