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Ethereum Co-Founder Says Tether Backed By USD

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Joseph Lubin, one of the co-founders of Ethereum, has thrown his weight behind the controversial stable coin of Tether (USDT). In an interview with Yahoo Finance, Lubin elaborated why he believes that USDT is backed by actual US dollars in a one-to-one ratio. He added that:

“Tether’s an interesting project. Based on our analysis, which involves just talking to a bunch of people in the space, we do believe that tethers are backed 1-to-1 by U.S. dollars in bank accounts… With respect to market manipulations, I’m not sure that market manipulations are related to Tether directly, if they do exist.”

Tether Market Manipulation

The market manipulations Joseph Lubin is referring to, are claims by a research paper by faculty at the University of Texas (Austin) stating that USDT is used to prop the value of Bitcoin (BTC) during times of turmoil. The co-authors of the paper, Professor John M. Griffin and Ph.D. Candidate Amin Shams of the same institution, stated that USDTs are minted whenever the value of BTC is declining significantly. The newly minted Tethers are then used to prop the value of BTC in the markets.

The paper goes on to conclude that:

“Our analysis centers on examining potential manipulation of Bitcoin and other major cryptocurrencies. We examine whether the growth of a pegged cryptocurrency, Tether, is primarily driven by investor demand, or is supplied to investors as a scheme to profit from pushing cryptocurrency prices up. By mapping the blockchains of Bitcoin and Tether, we are able to establish that entities associated with the Bitfinex exchange use Tether to purchase Bitcoin when prices are falling. Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention. These effects are present only after negative returns and periods following the printing of Tether.”

According to Lubin, the manipulation in the crypto markets might stem from the fact that most trading platforms are relatively unregulated when compared to traditional securities exchanges. He would add:

“Ideally we’ll get a little better regulation of those centralized exchanges, at least, and we’ll see less sloshing around in price.”

Ethereum’s Difficulty Bomb Delayed

In other news, Ethereum’s core developers have decided to delay the network’s ‘Difficulty bomb’ by agreeing to include the code for such a change into the upcoming Constantinople fork.

The ETH difficulty bomb refers to the increasing difficulty level of puzzles in the mining algorithm used to reward miners with Ethereum on its blockchain. As the puzzles become more difficult to solve, there is a lag in the production of blocks on the ETH network. This lag will continue to slow down the network resulting in a scenario that has been referred to as an ‘Ice Age’ where rewards will not be based on Proof-of-Work but on Proof-of-Stake.

Per the agreement by the Ethereum core developers posted on Github, the difficulty bomb will be delayed for about 18 months and there will be a reduction in the block rewards with the Constantinople fork. The summary decision stated that:

“Starting with `CNSTNTNPL_FORK_BLKNUM` the client will calculate the difficulty based on a fake block number suggesting the client that the difficulty bomb is adjusting around 6 million blocks later than previously specified with the Homestead fork. Furthermore, block rewards will be adjusted to a base of 2 ETH, uncle and nephew rewards will be adjusted accordingly.”

This decision and plans for a hard fork, further provide hope that the Ethereum core developers will also come to a discussion with regards to the scalability issues evident on the Ethereum network.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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How Can Foreigners Get Loans in Singapore

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Foreigners who are residing in Singapore and looking for financing could do so in the form of a payday loan. It is good to find out that you can borrow the money from a reputable lender and that the interest rates are low enough for it to be a viable option. Online lenders that specialize in doing business in the country can certainly help one. These online companies are not only reliable, but their service is fast.

At the same time, many cannot afford a high standard of living. Many individuals cannot afford essentials, such as a car or a house. It can be difficult for the majority of the working class to scrape through on their basic salary. 

What defines a foreigner in Singapore? 

A foreigner in Singapore means that you are not a permanent or natural citizen there. As a foreigner, you will not be holding a Singaporean passport. The rules can differ a little for foreigners and residents. Singapore, being a multinational hub, houses many foreigners within the city. Foreigners come to Singapore for the many attractions it offers. Many people come to Singapore for Work-related purposes. A lot many also come for vacations or to visit a friend or a relative. Some foreigners come with a plan to move to Singapore permanently, attracted by their lavish lifestyle. Singapore also…

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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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