Maitland/AMO Cryptocurrency Monitor – 7 November 2019
The Big Read
Bitcoin has reached $1bn in cumulative transaction fees, passing the major milestone on the eleventh anniversary of the world’s first cryptocurrency. Data gathered by analytics firm Coin Metrics revealed that over 200,000 Bitcoin have now been paid in transaction fees since it launched in 2009. The paper notes however, that Bitcoin still faces a number of challenges before it can be considered a legitimate and mainstream form of payment, including regulatory hurdles, price volatility and security issues.
The Stellar Development Foundation has burned 55 billion of its XLM tokens, over half the cryptocurrency’s supply. This was announced by CEO Denelle Dixon from the stage of the Stellar Meridian conference, CoinDesk reports. XLM previously had 105bn coins in existence, with it shrinking to 50bn, with the company claiming the 50bn burnt were not needed. The news was greeted warmly by the crowd, many of whom likely own the token.
The founder of Ethereum has stated that Facebook shouldn’t be driving the libra cryptocurrency project, stating that the coin will suffer from its partnership with the social media giant. CNBC writes that the issues surrounding Facebook regarding trust and personal identity could harm the future of Libra, with Joseph Lubin stating that its only hope now is if it launches in several small and medium sized nations and bide their time. However, Lubin is still positive regarding the future of stable coins, believing numerous other ‘Libra’s’ will pop up in the future.
New Kid on the Block – The Technologies, Funds and ICOs you should know about
The Independent reports that China is preparing for the launch of its own state-backed cryptocurrency by removing online posts claiming that blockchain technology is a scam. China has also passed a new law, which will come into effect on January 1, aimed at “facilitating the development of the cryptography business and ensuring the security of cyberspace and information”. It is understood that the new law will precede the launch of China’s state-backed cryptocurrency, which is expected to be unveiled early next year.
Scams, Sanctions and Suspicious Activity
The trial of Mark Scott, the US lawyer accused of laundering some of the proceeds from the OneCoin cryptocurrency “scam”, has begun in New York. Mr Scott has been accused of laundering approximately $400m (£310m) out of the US while trying to conceal the true ownership and source of the funds, writes the BBC. Prosecutors claim he also spent some of the fraud’s proceeds on a yacht, three homes and a Ferrari car.
Coin Rivet reveals that Brazil seems to be under attack from multiple cryptocurrency scams. Victim’s gave testimonials to Brazilian TV news channel Record, with one interview highlighting an investor who bought Bitcoins to invest in the HPX platform. However, when the man tried to withdraw his funds, he could not complete the process.
Bulls & Bears of the week
“We’ll see many Libra-like projects going forward with different kinds of price-stable currencies offered.” – Ethereum co-founder Joseph Lubin
“It will, however, have a positive impact within the British market, but the degree of which this will affect the global cryptocurrency markets is speculative at this time.” – William Thomas, CEO of peer-to-peer exchange Cryptomate, speaking about the potential effects of a no-deal Brexit on cryptocurrencies