Tuesday, November 13, 2018

Ripple moves

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November 13, 2018

HIGHER COURT: An ongoing legal battle between XRP investors and payments startup Ripple is entering its next phase.

Attorneys for Ripple Labs and affiliated defendants have filed to move a consolidated class-action lawsuit from its previous venue at the San Mateo Superior Court to the U.S. District Court, Northern District of California, court documents indicate.

Simply the act of seeking to move the case to district court means the case will now be seen there, said Stephen Palley, a partner at the D.C.-based law firm Anderson Kill, although plaintiffs can try to move the case back to a state-level court by filing a motion to remand.

The consolidated class action combines several previous class-action lawsuits filed by plaintiffs. One of the individual suits states that there are “thousands” of individuals who lost money after buying the Ripple-affiliated token XRP. The plaintiffs are also asking the firm to pay $167.7 million in damages. Full Story

BITMAIN'S BITCOIN: Bitmain is suing an unidentified individual for allegedly stealing 617 bitcoin from an account it held with Binance. The lawsuit, filed last week in a Seattle district court, claims that the thief gained access to Bitmain's account in April and used the company's bitcoin to purchase an altcoin called MANA at highly inflated levels. 

The attacker then created a sell order for MANA they held in another account at Binance, essentially swapping their tokens for Bitmain’s bitcoin. The attacker later reportedly transferred the bitcoin from their Binance account to a Bittrex account.

Overall, Bitmain is claiming $5.5 million in damages, as the price of bitcoin was nearly $9,000 at the time of the theft. Full Story

BCH BETS: Asian investors have been rushing to buy bitcoin cash (BCH) in anticipation that Thursday’s contentious network software upgrade, or hard fork, will leave them owning two coins with a combined value greater than the current price.

James Quinn, head of markets at cryptocurrency and blockchain investment firm Kenetic Capital, said even some institutions have gotten in on the act.

As a result, Hong Kong-based Kenetic has seen a significant uptick in BCH trades. “We are doing multiples of what we’d normally be looking at,” Quinn said.

And Kenetic is not alone. According to data from CoinMarketCap, overall daily BCH trading volume has seen significant growth since early November, climbing to as high as $1.4 billion on Nov. 4 – more than 6 times the $228 million seen on Nov. 1. Full story



CoinDesk Research tracks many different metrics in the crypto economy. Social interest is important in determining the engagement of various coin communities.

We observed Reddit post volume on each cryptocurrency's unique subpage for Monday, Nov. 12. Bitcoin cash (BCH) had the highest amount at 29 percent followed by BTC at 27 percent and VET at 8 percent.

BCH has only 23 percent of the subscriber base as BTC but is over-performing by 263 percent based on that base. This is most likely caused by the controversial hark fork potentially happening on Nov. 15. A general hypothesis is that as consensus-constrained developer activity rises, social activity will follow.

For more research insights, check out the CoinDesk Research section here.
 


Jay Clayton
Chairman of the SEC


Kelly Loeffler
CEO of Bakkt


Dr. Mohamed A. El-Erian
Chief Economic Advisor at Allianz


Jeffrey Sprecher
Chairman of the New York Stock Exchange & Chairman and CEO of
Intercontinental Exchange, Inc.
 
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BULLS WEAKEN: Bitcoin's drop to two-week lows near $6,250 may have opened the doors for a slide towards $6,113 – the support of the trendline connecting the June 24 and Aug. 14 lows. However, the bearish pressure would weaken if prices invalidate the falling-tops pattern seen in the hourly chart with a move above $6,383. Full Story

BEST OF THE BEST

MOTHERBOARD: A hacker who hacked a hacking firm has gotten away with it, according to a Motherboard feature.

Back in July 2015, Italian spyware company Hacking Team – which specializes in selling intrusion and surveillance tools to governments, law enforcement and corporations – suffered a breach that saw a 400-gigabyte torrent file containing a huge number of sensitive internal files, including spyware source code, made public. 

A “vigilante hacker” called Phineas Fisher claimed responsibility for the attack, even posting a description of exactly how the hack was carried out, says the piece. But this summer, an Italian judge ruled that the investigation into the identity of the hacker should be ended as the trail has led nowhere.

With Hacking Team even having tried to finger employees for the attack, Phineas Fisher told Motherboard, afterwards “I'm glad to hear they've stopped their pointless investigation that was mostly just being used as a tool by [the firm’s founder and CEO] to harass ex-employees that he didn't like.”

THE REST

THE NEXT WEB: Public blockchains like bitcoin and ethereum could have a big “privacy poisoning” problem in the coming years, says a piece from The Next Web. The issue comes down to what happens when personal data is added to a public blockchain, potentially bringing the network into conflict with privacy laws.

One of the key regulations of the EU’s General Data Protection Regulations or GDPR is the so-called “right to be forgotten” – that is, you can by law demand to have your public online data deleted. But, as public blockchains can’t be amended after data has been written to them, they could potentially end up contravening the GDPR.

However, the EU isn’t very clear on how GDPR should apply to blockchains, and their decentralized nature begs the question, who should be held responsible for any infractions, and how? Further, the piece argues, the lack of clarity opens the system up to “potential abuse.”

BLOOMBERG: Customers of the Swift banking network are fleeing to blockchain payments startup Ripple, the firm’s CEO Brad Garlinghouse says in a Bloomberg piece.

Technologies used by banks today, that were developed by Swift “decades ago,” have fallen behind the times, Garlinghouse argued in an interview with Bloomberg TV. Pointing out that Swift has previously said it doesn’t regard blockchain as a good solution to correspondent banking, he added, “We’ve got well over 100 of their customers saying they disagree.”

However, while Ripple now claims to have over 100 banks and payment providers on its RippleNet network, Swift has more than 11,000 customers around the world, the article states. And while there have been rumors of a possible tie-up between the two entities, Garlinghouse also said that was not the case.

WHO WON #CRYPTOTWITTER

Consensus: Invest Keynotes



Jay Clayton
Chairman of the Securities and Exchange Commission


Dr. Mohamed A. El-Erian
Chief Economic Advisor at Allianz
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