Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

Bithumb Plan to Compensate Customers. South Korean crypto exchange Bithumb has announced the 11 cryptocurrencies stolen in last week’s theft and the amount of each coin missing. A compensation plan has also been unveiled for the equivalent value of the lost coins in an undetermined cryptocurrency.

Only Half As Much Crypto Missing

Bithumb officially announced Thursday the details of the cryptocurrency theft which it reported on June 20. Since then, the exchange has been cooperating with the authorities to investigate the cause of the theft.

Initially, the exchange estimated that the “damage caused by the cyber-attack was about 35 billion KWR [~US$31 million],” but that amount was revised to “about 19 billion KRW instead [~$17 million]” after undergoing a “continuous recovery process.” The exchange elaborated:

The main reason for the reduction of the damage is due to the ongoing participation, support and cooperation of cryptocurrency exchanges and cryptocurrencies foundations across the world. Also our quick response to the cyber-attack by removing cryptocurrencies from hot wallet to cold wallet effectively contributed to reducing the overall damage.

At the time of this writing, Bithumb is South Korea’s largest crypto exchange with a 24-hour trading volume of $136,432,719, followed by the Kakao-backed Upbit with $110,435,824 trading volume in the same time period, according to Coinmarketcap.

Which Coins Were Stolen?

Bithumb has provided a breakdown of the 11 cryptocurrencies that it claims were stolen. They are BCH, BTC, ELF, ETH, ETHOS, GNT, HSR, KNC, OMG, VEN, and XRP. The largest damage is in BTC, which had about 13.9 billion won (~$12,377,255) stolen. According to Bithumb, the total amount stolen is 18,945,911,857 KRW or $16,892,614.

Compensation Plan

Bithumb has also revealed its plan to compensate all affected users. Reiterating that it takes full responsibility, the exchange announced that it is organizing “a compensation airdrop event.”

Members must apply for compensation from the theft to be eligible for the distribution.

For the inconvenience of keeping customers’ coins tied up, the exchange is offering interest between the time of application to the date they are fully compensated. “The annual interest rate of 10% will be prorated over the [compensation] period, hence the longer you hold, the higher compensation becomes,” Bithumb emphasized. “The amount of cryptocurrencies held will be calculated from 8:00 PM ~ 9:00 PM (UTC+9) each day starting from the date of application until the end of the [compensation] period.”

However, the eventual selection of which cryptocurrency customers will be reimbursed in has not yet been determined, Bithumb detailed, stating:

The equivalent value of cryptocurrencies will be given away in a form of an airdrop (the type of cryptocurrency is not decided yet).

Commission Fee-Free Coupons

In addition, Bithumb is offering commission fee-free trading coupons for all interested customers for the inconvenience caused to them, starting on June 28.

“Commission fee-free coupons will be available for purchase each day (the coupon is zero cost, useable for 1 day and it can be purchased once UKevery day),” Bithumb detailed, adding that once it is purchased, it does not stack and can only be purchased when another coupon expires@BPI

The great alt-coin migration On June 30th

Great Alt-coin Migration. On the 30th of June major networks Vechain and Ontology will shift from existing as sub-tokens, operating as smart-contracts on parent networks, to their own proprietary networks.

The final day of June 2018 is significant in the crypto world given the mainnet transitions of a number of prominent tokens. Vechain, for example, will move from being an ERC-20 asset on the Ethereum blockchain, while Ontology will say goodbye to NEO and NEP-5.

In addition to these to major migrations, Fusion (FSN) a network with a $177 million market cap,  will also shift from an ERC-20 smart contract to a main network, on the 30th of June.  

While mainnet transitions such as these bring opportunities for the protocols to blossom on their own terms, they can also come with logistical challenges. For example, All Vechain VET token transactions were previously handled by miners from the Ethereum network, which is large, decentralized and possesses immense processing power.  

The Vechain blockchain will now have to depend on its own native miners to provide processing power, handle block production and achieve network consensus for securing transactions. As we have seen with EOS this can be a challenging transition to make.

On the flipside of this, Vechain will be switching to a Proof-of-Authority consensus algorithm — a system said to allow more straightforward network governance and fewer mining bottlenecks. If faster transactions times and greater efficiency is achieved via the new consensus method, this could potentially bring more investors, Dapp developers and enterprise partners to the network.

How a mainnet begins its life

The process of switching ‘temporary’ ERC-20 token to a new network, can be a challenging. It requires a high level of coding literacy from the dev teams behind the networks, as well as coordination, particularly given that a vast majority of switching tokens sit on third party platforms such as wallets and exchanges.

In this sense, mapping to a new network can happen in two broad forms. Token holders can be made to shift their tokens away from sitting in third party addresses like exchanges or wallets, to an address controlled internally by the switching network (manual switching).

However, the process of shifting tokens between addresses is at the very least inconvenient for token holders who have chosen to leave their assets with secure third parties. In a number of cases, third parties support the switching and handle the network mapping on behalf of the transitioning blockchain. This means token holders can leave their tokens sitting on external exchanges and all switching will be handled for them, and the network, by infrastructure within the third parties (automatic switching). TRON during its switch, took this approach and mapping for all token holders could only occur via a third party exchange, a fully automatic token swap.

The ONT approach

Alternate approaches are an option, however. With Ontology, for example, the network lets users choose between leaving their funds with supported third parties, like Binace, Huobi Pro, Upbit, KuCoin, Gate.io, and CoinEgg, or switch manually via a secured Ontology address to be released after the mainnet launch on the 30th of June.

For Ontology (ONG) token holders, there is an additional consideration regarding its upcoming mainnet launch. Ontology post-launch, will be a smart contract network and as such, requires ‘Gas’ to operate. Similar to NEO, Ontology will separate the network and will have two operable tokens. ONT will represent an ownership stake in the network, which will reward the holder with ONG, which will then be used as the Gas to confirm smart contracts.

With the mainnet launch, there is a question of how best for ONT holders to receive ONG on the new network. The most efficient method would appear to be via a native Ontology native, which will deposit new ONG daily for ONT holders, and is run by the Ontology team. However, if a holder prefers, Binance has announced that it will also deposit ONG gas for ONT holders.

Binance handles millions of dollars worth of funds daily, and holders may feel safer with them being their fund’s custodian, versus a new network early in its lifecycle.

Vechain Thor launch - a staggered timeline

With Vechain, similar to TRON before it, the mainnet launch and migration will be two separate events. On the 30th of June, the main network will be launched. Interested developers and the Vechain team will explore code, test for bugs and establish new nodes, before a full migration set for mid-July.

Currently, a few exchanges including Binance and Huobi Pro, have announced support for the Vechain network launch. It should be expected that more will sign-up to handle the switch before mid-July. There will also be a Vechain Thor mobile wallet released before the migration, and it is likely that token holders will be able to choose the mobile wallet for the token swap, rather than use a third party.

For Vechain, the network move will signal a significant shift in the utility and tokenomics of the protocol. Holders should be wary of this. For purely aesthetic purposes, the VEN ticker will change to VET. Additionally, the tokens will be mapped 1 VEN to 100 VET, a psychological decision indicating that Vechain expects their market to expand in the future.

At the time of the launch, if 1 VEN =  $2.50 then 1 VET will equal $0.025. Holders should be assured that their coins are not being diluted and the market cap of the Vechain network will not be changing. They are not being made richer or poorer as a result of the token swap. Any profit or loss for investors will be based on market views of the launch and if the new network is seen as offering novel solutions.

Similar to Ontology, The network is broken up into two tokens. In this case they are separately used as a stake in the network (VET), and as a medium to access more complex smart contracts run on the blockchain (THOR).

Holding VET will ensure that a specific amount of THOR will be allocated to a Vechain address. Unlike Ontology, where nodes will decide the conversion rate for tokens, THOR allocation is based on a static rate that can change monthly. As specified in the Vechain whitepaper, the THOR rate, based on its equation, will adjust to ensure there will always be partners wanting to participate in the network.

The launch also provides an opportunity for token holders to become involved with mining on the Vechain network. There are number of different types of block producers on the network, with each a tiered block reward program. For the highest level, authority masternodes, 25 Million VET will need to be staked (After 1:100 split). At current market rates, this equates to an approximately $650,000 worth of collateral.

The other altcoins switching

Also set to switch to their own mainnets are the smaller networks, Fusion (FSN) and Credits (CS).

Fusion will have a unique method for mapping, and will use its internally developed LILO (Lock in-Lock out) methodology.

In this system, private key information is sharded and spread out across different nodes in the network. Fusion’s algorithm is designed so that during a transaction, nodes holding shards of the private key are online and available during the verification process. Once each node has suitably confirmed the signatures of the shards of the original key making the transaction, the original transaction is confirmed and processed.

Because of the perceived security of the LILO system, Fusion has decided to handle all token-swapping via its own addresses, and not use any third parties.

For Credits (CS), news of its main network launch comes from a roadmap published in 2017. However, there has no been no mention of protocol, or nature of the switch from the official Credits twitter or medium accounts. It is unclear, therefore, if a token swap will actually occur on the 30th of June.

The importance of a testnet

Before a main network is launched, there is normally a test version of the network released where integral new features are trialled. Zilliqa (ZIL) a token with a marcap of $ 812,934,234, will release its testnet v1.0, in preparation for an eventual mainnet arrival in Q3 2019.

 Zilliqa is a network vaunted for its transaction speed capabilities generated by a unique sharding protocol. Based on most recent closed testing, the network may be able to achieve speeds as high as 2,500 transactions per second. 

 The new testnet will begin the process of embedding a new security-focused smart contract coding language, Scilla. Zilliqa is hoping to cut out any potential hacking risks when hosting on the network, at the language level. Safe smart contracts are a recurring  issue within blockchains given flaws such as those in the infamous DAO contracts and more recently found by bounty hunters within EOS’s code@BPI

Bandara Internasional Belanda Pasangkan ATM Bitcoin

ATM Bitcoindi Belanda. Untungnya, bandara internasional Belanda sekarang akan memungkinkan penumpang dan pengunjungnya mengubah “sisa euro ” untuk Bitcoin dan Ethereum. Untuk melayani kebutuhan pelancong yang lebih baik, bandara telah memasang Bitcoin ATM.

ATM Bitcoin Baru di Bandara Schiphol, Bandara Internasional Belanda

Bandara tersibuk ke-11 di dunia, Bandara Schiphol Amsterdam telah merilis Siaran Pers pada 20 Juni, bahwa bandara telah memasang mesin ATM yang menawarkan BTC dan ETH. Namun, Schiphol adalah bandara Eropa pertama yang menawarkan pertukaran crypto melalui ATM.

Direktur Produk & Layanan Konsumen di Bandara Schiphol Amsterdam, Tanja Dik mengatakan;

“Schiphol terus mencari cara untuk berinovasi dan memberikan layanan optimal kepada penumpang. Dengan Bitcoin ATM, kami berharap dapat menyediakan layanan yang bermanfaat bagi penumpang dengan memungkinkan mereka bertukar dengan mudah. Jadi, ‘lokal’ euro untuk ‘global’ BTC dan ETH. Itu bisa bermanfaat jika, misalnya, tidak mungkin menghabiskan euro di negara asal mereka ”.

Namun, mesin ATM terletak di Ruang Kedatangan 2 di Bandara Schiphol dan juga dari jalur menuju Departure Hall 1 dan 2, serta Schiphol Plaza.

Pendekatan baru ini telah diperkenalkan dalam kemitraan dengan Perusahaan Belanda, ByeleX Data Solutions BV. Selain itu, perusahaan menyediakan layanan integrasi pembayaran cryptocurrency untuk bisnis.

Herman Vissia, direktur Byelex mengutip;

“Kami senang bahwa Schiphol bersedia untuk bergabung dengan kami dalam mengeksplorasi cara-cara untuk memperkenalkan penumpang ke cryptoreality baru”.

Provinsi ini mendukung total dunia kelima ATM, meskipun sebagian besar tetap di Amerika Utara. Namun, Belanda memiliki 20 ATM kripto operasional saat ini.

Sebelumnya pada bulan Mei, Bandara Brisbane yang berbasis di Australia telah mulai menerima berbagai aset digital dan melabelinya memiliki salah satu bandara crypto yang ramah secara global@BPI

Coinbase CEO Unveils Crypto Charity for the Unbanked

Coinbase Crypto Charity. Coinbase CEO Brian Armstrong wants to help unbanked individuals around the world gain access to financial services.

On Wednesday, the exchange's co-founder announced he was launching a nonprofit organization to financially empower people and donate cryptocurrency to the unbanked worldwide. GiveCrypto.org aims to partner with other nonprofit entities to find potential recipients who could benefit from these cryptocurrency donations.

In a release, Armstrong wrote that "most people I respect and know in the crypto ecosystem believe we have a moral responsibility to shepherd this technology forward in a way that allows it to reach its full potential." He cited lower fees, reduced transaction times, micropayments and mobile device-friendly payment systems as some of the advantages for blockchain technology.

He wrote:

"Many who invested early in cryptocurrencies understood it could make the financial system more efficient, lower fees, and reduce transaction times. Early adopters saw the potential to unlock widespread innovation if the internet had a native currency. And almost everyone I met in the community early on believed cryptocurrency could finally bank the unbanked of the world—the billions of people who are locked out of the financial system and trapped in poverty as a result."

The nonprofit aims to raise $10 million by the end of 2018 and increase its funding to $1 billion within the next two years, he said. He plans for the organization to "give away less than the amount that the fund grows each year," ensuring its longevity.

Initial recipients will live in "emerging markets who are going through financial crisis," Armstrong said@BPI

Harga Anjlok ke Rp 81 Juta, Valuasi Bitcoin Hilang Rp 286 M

Harga Anjlok Valuasi Bitcoin Hilang.  Investor Bitcoin sekarang mengalami penurunan. Karena di tahun 2018 ini trend Bitcoin sudah tidak sebesar dulu.

Dalam 24 jam terakhir, harga Bitcoin sudah turun 4,17%. Menurut Coinbase, sekitar 8.446 Bitcoin yang diperdagangkan. Hari Jumat (29/6) sampai pukul 9.40 WIB, harga Bitcoin diperdagangkan US$ 5.869,57 per koin atau setara dengan Rp 81,59 juta (asumsi US$1 = Rp 13.900).

Harga Bitcoin

Harga Bitcoin telah turun sebesar 17,61% dalam satu bulan terakhir ini. Penurunan yang drastis ini telah membuat harga pasar Bitcoin turun dari US$ 121,55 juta menjadi US$ 100,96 juta. Yang berarti ada US$ 20,59 juta (Rp 286,2 miliar) yang hilang dalam sebulan terakhir. Ini sangat membuat para pengguna bitcoin merasa kecewa.

Faktor-faktor yang memengaruhi harga bitcoin mengalami penurunan disebabkan oleh peraturan baru-baru ini di seluruh dunia tentang bitcoin, langkah-langkah pemungutan pajak pemerintah yang terhadap dari bitcoin, munculnyacryptocurrency (teknologi membuat mata uang digital) lainnya yang mengduplicate bitcoin, dan menurunnya minat media terhadap Bitcoin.

“Bitcoin akan turun hingga ke US$ 5.350 dalam satu atau dua minggu mendatang” Trader Cryptocurrency Ran Neu-Ner mengatakan akan banyak hal buruk yang akan dihadapi Bitcoin@BPI

The Biggest Asset in the Ethereum Classic (ETC)

Biggest Asset in Ethereum Classic. Ethereum Classic (ETC) has been the center of attention for the last few weeks. That's after Coinbase announces that they will list it on their exchange. This announcement seems to have surprised many people and some investors are wondering why Coinbase chose Ethereum Classic (ETC), on top of many other better known crypto in the market.

Is there anything valuable about this crypto that has been largely ignored in the past? The answer is big. This may not be the same as other projects on the market, but the ETC is actually a very valuable project. The key value lies in its eternity.

For the layman, eternity means that nothing is inserted on the modified Ethereum classic blockchain, no matter what the situation. All information on this blockchain is permanent, and can always be used as a reference point, at any point in the future. This means the only reason Ethereum can be used is to remove bugs from the system

So does this mean that information can be changed in another blockchain, such as Ethereum (ETH)? To answer this, one must return two years ago, when Ethereum branched out to form Ethereum (ETH).

The reason for the fork is the DAO hack which, more than $ 50 million is lost. Through the ETH fork, information about blockchain is changed, thus returning investors. Investors and miners fighting this fork hold the original Ethereum and call it Ethereum Classic (ETC).

The principle of binding them is that blockchain can not be changed to change entries no matter the situation, whether good or bad. If it's bad, those involved have no choice but to deal with it.

The eternal Ethereum Classic is increasingly seen by many as an asset, its resurrection as an upscale crypto project. That's because, if companies use blockchain to generate contracts, they must be confident that the contract can stand the test of time.

Just to give you context, assuming company A sells the property to company B and this contract is done through blockchain. It would be in their best interest if the information is permanent and irreversible.

That's because if there's a legal case in the future, they can always look back at this deal on blockchain. Consequently, eternity is a huge asset to the blockchain platform, and Ethereum classic (ETC) has successfully used it as an asset. In fact, this can be a key determinant feature that will determine which blockchain projects will be adopted in the future, and which ones will wither.

With this in mind, it is quite clear that Ethereum Classic (ETC) is one of the most valuable and highly undervalued crypto projects in the market. After entering Coinbase, the volume will soar, and so will its value. ETC's chances of closing the year at over $ 100 are quite high, based on a strong brand as a lasting blockchain @ BPI

How to Hold Cryptocurrency in a Retirement Account without Feeses

Hold Cryptocurrency without Fees. More and more, savvy investors are sewithout feeseking to diversify retirement funds into nontraditional assets. It’s natural then, that many are considering cryptocurrency. With a potential for tremendous appreciation, it can make sense to invest in cryptocurrency through an IRA so that those gains will escape taxation.

With a potential for tremendous appreciation, it can make sense to invest in cryptocurrency through an IRA so that future gains will escape taxation.

However, holding cryptocurrency in a retirement account has traditionally been difficult. When you hold funds in an IRA (or Roth IRA), the Internal Revenue Code prohibits “direct holdings”. All retirement funds must instead be held by a custodian, which must be a bank or a “nonbank custodian” approved by the IRS under Treas. Reg. 1.408-2(e).

The first obstacle many investors hit is that most custodians will not permit cryptocurrency within retirement accounts. There are a few “Bitcoin IRA” custodians out there which will allow investments in Bitcoin, however, they typically hold the private keys and charge large fees for doing so. Often these custodians operate a multi-sig wallet for the funds, meaning they don’t have complete control, but even then the fees charged make this option unrealistic for many investors.

The good news is that there is a way to hold cryptocurrency directly that eliminates almost all of these middleman fees. You can even be in control of your private keys. This type of retirement account is a “checkbook IRA”. With a checkbook IRA, the custodian maintaining your IRA holds only one asset: an LLC owned solely by the IRA.

The IRA is 100% owner of this LLC, however, the manager of the LLC is you. As manager, you handle the day to day affairs and investing of the LLC. When fiat currency is invested into the IRA, the IRA immediately turns around and contributes it to its wholly owned LLC. 

Perhaps the most important step in the process is to find an attorney with expertise in “checkbook IRAs”. 

From there, as manager, you control how those funds are invested. This includes the ability to invest in cryptocurrency. No approval from the custodian is required, as the investment is legally held by the LLC, not the IRA. The IRS does issue some “prohibited transaction rules”. These rules outright prohibit IRAs (and LLCs owned by IRAs) from investing in certain assets.

The good news is that cryptocurrency is not one of those asset classes.  There are additional “prohibited transaction” rules that may apply to your situation, however, so be sure to consult with an expert to avoid violating them on accident.

Perhaps the most important step in the process is to find an attorney with expertise in “checkbook IRAs”. An experienced attorney will not only set up the IRA and LLC for you, but also draft the operating agreement needed for this setup and provide assistance with opening the LLC’s checking account (which will be important, as described later). It’s very important to note that under IRS rules, all contributions to an IRA must be made in US Dollars, not cryptocurrency.

After receiving the US Dollars, the IRA custodian then transfers those funds into the LLC’s checking account. From the LLC’s checking account, the US Dollars can be used to purchase cryptocurrency. An obstacle here is purchasing cryptocurrency in the name of the LLC, rather than in your personal name.

One option is to purchase directly from a private party. There are numerous websites that connect private party sellers to buyers. Many such sites require you to add “real name” to your Buyer profile. To be extra careful with regard to the prohibited transaction rules, I suggest listing your name like this “Joe Smith, as Manager of ABC LLC”. It is also important that the LLC not purchase any cryptocurrency from a party which is “related” to you, as this is a prohibited transaction under IRS rules.

The other method is to use one of the cryptocurrency exchanges which allow opening accounts in the name of an LLC rather than in the name of an individual. Not all exchanges will allow this. Be extra sure that the account is in the LLC’s name (not yours) and that the linked bank account is an account owned by the LLC (not you).

You’ll also need a wallet for holding your cryptocurrency. If your cryptocurrency holdings are small, you may choose to leave them in your exchange trading account. But if they’re larger, you may wish to transfer them to a more secure external wallet. The LLC must own the wallet, not you personally. This is because any exchange of assets between you and your IRA (or your IRA LLC) is a “prohibited transaction” under IRS rules.

 The best solution is probably cold storage, which is easily “owned” by the LLC and is also very secure. A hardware wallet, or even a paper wallet can fulfill this function. Important: This article is provided is for educational purposes only. Readers should consult with a tax professional and are solely responsible for their own due diligence not only with regard to tax issues, but also in making investment decisions and choosing a custodian and exchange@BPI