Friday, December 27, 2019

The 25 most important crypto stories of 2019

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As we slowly wind down 2019, a look back at the crypto market shows that it has certainly been an interesting one. Looking back at the past 12 months plenty of events have taken place, from several Bitcoin ETF applications, crypto scams and hacks, to the announcement of Facebook's Libra stablecoin. Coin values have gone up, and, ultimately, down, and opinions have been voiced as to where the market is going.

One thing is for sure, as the year comes to an end, many will be looking to see what 2020 will bring.

In no particular order, let's revisit the 25 most important crypto stories of 2019.

As a reminder, Inside.com returns with its regular publishing schedule on Jan. 2.

1. Hackers steal over $500,000 worth of Ethereum Classic

The hackers were able to undertake a 51 percent attack that rewrote the coin's blockchain. As a result, this allowed them to double spend around 88,500 tokens. –ARS TECHNICA

2. Bitwise submits a Bitcoin ETF filing to the U.S. Securities and Exchange Commission (SEC)

Bitwise had initially filed a Bitcoin exchange-traded fund in 2018; however, this was rejected by the commission following concerns about price manipulation. Bitwise claimed that "2019 should be the year" for a crypto ETF. –BITCOINIST

Reviews: CNBC COIN DESK DECRYPT

More: Following the SEC's rejection of Bitwise's ETF application, the commission is taking a second look at its proposal. As part of the review, the general public can comment on the rejection through December 18.

3. The price of Bitcoin dips below $3,500

Trading at its lowest since mid-December 2018, the price of Bitcoin fell to $3,480 per coin. According to experts, they blamed the fall in value to the 51 percent hack on Ethereum Classic, arguing that it scared investors off. –MARKET WATCH

Reviews: COINTELEGRAPH BITCOINIST

More: Since the beginning of the year, the price of Bitcoin has fluctuated in value. In October, it nearly topped $10,000 after a rally in price following China's president, Xi Jinping's endorsement of the blockchain.

4. The Constantinople hardfork

The hardfork, which was scheduled for February 27, had been delayed several times. A previous schedule was on January 16 but was postponed after developers discovered a security bug. The fork continued without EIP 1283, an upgrade that was supposed to make certain transactions on Ethereum cheaper. –MASHABLE

5. QuadrigaCX, a Canadian crypto exchange unable to repay $190 million in client holdings

In December, the platform's founder Gerald Cotten died in India; however, he was the only one who knew the passwords to its cold storage account, meaning there was no way for others to gain access to the locked funds. Speculation, at the time, circulated that Cotton had faked his own death. –GIZMODO

Reviews: COIN DESK BLOOMBERG

More: Lawyers representing the platform's users' have requested that Cotten's body be exhumed to check he is dead and, if so, the cause of his death.

6. Ripple's XRP bonuses

In order to recruit engineers to the company, Ripple offered them millions of dollars worth of the altcoin, along with a competitive salary back in February. According to an anonymous engineer, they had received an email from the company promising a package worth up to $3 million in XRP. –COIN DESK

7. Mercedes-Benz develops a blockchain platform to increase transparency

Partnering with software company Icertis, the platform allows for a sustainable mapping of sorted documents across the supply chain ensuring that each component of the car meets industry standards. –COINTELEGRAPH

8. Miguel Vias, the head of XRP market at Ripple, denies allegations

Back in March, Ripple was accused of bribing Coinbase to list XRP at the end of February. Coinbase had originally taken a cautious approach to the coin's controversial history with Ripple Labs, in particular to a $167.7 million class-action lawsuit. –CCN

9. LocalBitcoins.com implements new security measures

The platform took steps in March to satisfy the European Union's money-laundering rules, making it harder to purchase Bitcoin anonymously. By doing so, it became the first to align itself with the EU's 5th Anti-Money Laundering Directive (5AMLD). –THE NEXT WEB

10. Brock Pierce's crypto-backed mortgage

Brock Pierce, the founder of Blockchain Capital, used his crypto reserves as collateral to loan the money from NEXO, a Swiss-based lender. He then used the money to buy a $1.2 million home in Amsterdam. –BITCOINIST

     
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11. Ripple's Chris Larsen donates $25 million in XRP

The co-founder of Ripple donated the money to the San Francisco State University in April. According to the university, this was the biggest donation ever made to a U.S. university. –CCN

12. Vitalik Buterin defends Ethereum

Ethereum's co-founder took to Reddit to defend the progress being made to Ethereum 2.0. In his post, Buterin argued that it had not been delayed "even by a single day." –ETHEREUM WORLD NEWS

13. BitMex CEO claims Bitcoin can reach $50,000 in two years

Mid-April, Arthur Hayes made the prediction that the price of Bitcoin could reach new highs in two years. At the time, the value of Bitcoin was priced at $5,100; however, this didn't stop Hayes from voicing his opinion as to where he thinks it could reach. –CCN

14. Hackers declare Bitcoin as national currency

Sweden's ruling political party, the Social Democrats Party, had their Twitter account hacked, which saw the hackers declaring that Bitcoin was the country's national currency. They also changed the name to "Socialdemokraterna" to the "Bitcoin Democrats" and added a BTC symbol to the party's logo. –BE IN CRYPTO

15. Coinbase shuts its office in Chicago

Late April, the San Francisco-based platform closed the office and laid off 30 employees in the process. More than a year ago, Coinbase opened the office in Chicago to take advantage of the city's financial expertise. –FORTUNE

16. Warren Buffett is no fan of crypto

Billionaire investor Buffett has said that Bitcoin is a "gambling device" and that it has "a lot of frauds connected with it." He'd previously called the coin "rat poison squared." –CNBC

17. Hackers steal $40 million from Binance

Binance found themselves the victim of a hack at the beginning of May, which resulted in the loss of $40 million worth of Bitcoin. The hackers were able to steal 7,047.2 Bitcoin from an internet-connected hot wallet on the platform. –BUSINESS INSIDER

18. Facebook reopens blockchain advertising

In January 2018, the social media platform had banned crypto advertising in order to protect users from initial coin offering (ICO) scams. In June, it then relaxed its rules allowing some ads to be shown after they were reviewed. The following May saw the complete reversal of its ban, permitting blockchain and crypto-related ads to be shown without going through a pre-approval process. –TECH CRUNCH

19. The SEC sues Kik

The commission sued social media company Kik for a securities violation that took place during its 2017 $100 million ICO sale. The SEC stated in June that the ICO was a sale of unregistered securities and that it should give the money back to investors, plus interest and penalties. –WALL STREET JOURNAL

20. Facebook announces Libra

On June 18, the social media platform revealed its Libra stablecoin project, which is projected to launch in 2020. Acting as a stablecoin that is backed by a reserve of assets, Facebook envisages that Libra will be used mainly to transfer money between people. –THE GUARDIAN

Reviews: TECH CRUNCH WIRED THE VERGE

More: Since the announcement in June, Facebook has faced criticism from global regulators about its plans, with many citing legal challenges that it will need to overcome. Facebook's CEO Mark Zuckerberg has said that it won't launch Libra until it has received regulatory approval.

     
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21. President Donald Trump tweets about Bitcoin and Libra

Taking to Twitter, Trump stated that he's not a fan of alternative asset classes, adding that the U.S. dollar is the most dominant currency in the world. –@REALDONALDTRUMP

22. PBoC's central bank digital currency

China's central bank, the People's Bank of China, announced in August that it was ready to launch its cryptocurrency. Research has been ongoing for the asset over the past five years and that it was "said to be ready." –SHANGHAI SECURITY NEWS

Reviews: FINANCIAL TIMES FORTUNE REUTERS

More: A date has yet to be set for when China will launch its central bank digital currency; however, the PBoC has indicated that it will pilot it in the cities of Shenzhen and Suzhou.

23. Default answer should be yes

U.S. Congressman Patrick McHenry (R-North Carolina) has stated that regulators' default answer to crypto innovation should be "yes." In his opinion, those on Capitol Hill should learn as much as they can about the industry rather than trying to stamp it out. –UNCHAINED PODCAST

24. No point in central bank crypto coins

Alan Greenspan, the former chair of the U.S Federal Reserve, is of the opinion that central banks don't need to issue their own central bank digital currencies. In November, he argued that fiat currencies are backed by sovereign credit, something no other organization can offer. –CNBC

25. Russia would back crypto ban

Russia's central bank, the Bank of Russia, has indicated that it would be in favor of a crypto ban. According to the institution, "private cryptocurrencies cannot be equated with fiat money and cannot be legal tender." –COIN DESK

     

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

     
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