Australian ICOs, Brave Browsing, and Dubai's Payments

Monday, September 24th

🌈 Happy Monday everyone! Hope you all had a great weekend. The market hasn’t moved much, and neither has the news.

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3 things you need to know:

One: Australia’s securities regulator has blocked 5 ICOs since April 2018. Some of these token sales “will be restructured to comply with the applicable legal requirements.”

  • Trial run: The crypto capital markets are still in their formative days, and regulators globally are in the preliminary stages of figuring out how to regulate and oversee digital asset markets. In fact, these rejections are promising, as the watchdog will work to restructure some of these token sales into regulatory compliant investment vehicles. The regulatory body is demonstrating openness to ICOs, albeit compliant ones.

  • Obligations and responsibilities: Australian securities commissioner, John Price, says that ICOs have an obligation to fully disclose all required information and to make an effort to protect investors.

    “If you raise money from the public, you have important legal obligations. It is the legal substance of your offer - not what it is called - that matters. You should not simply assume that using an ICO structure allows you to ignore key protections there for the investing public and you should always ensure disclosure about your offer is complete and accurate.”

  • Read more…

Two: Brave Browser reaches 4 million users amidst privacy issues surrounding market-leading browsers. Yes, that Brave browser. The one that integrates BAT, and gives individuals more control over the types of ads they see.

  • Chrome update: A recent chrome update authorizes chrome to ship your local browsing data to Google, which used to require opt-in consent. This policy could have big privacy implications. Zcash scientist, IOTA hater and John Hopkins Professor, Matthew Green, had this to say:

    “In short, Google has transformed the question of consenting to data upload from something affirmative that I actually had to put effort into — entering my Google credentials and signing into Chrome — into something I can now do with a single accidental click. This is a dark pattern. Whether intentional or not, it has the effect of making it easy for people to activate sync without knowing it, or to think they’re already syncing and thus there’s no additional cost to increasing Google’s access to their data.”

  • Brave Browser: Enter Brave Browser, a privacy browser that allows users to opt-in to unobtrusive advertisements that compensate publishers in BAT which are automatically converted to fiat through trading platform Uphold.

  • Read more…

Three: Dubai will be integrating blockchain into its retail payments app DubaiPay. This will enable the settlement and reconciliation of transactions in real time.

  • An upgrade in efficiency: The current system is built on physical checks and manual reconciliation that includes fees, migrating the process to the blockchain would result in increased speed and cost efficiency.

  • A big trial run: The DubaiPay portal is pretty massive; it includes over 40 entities, both government and non government. The system has already been tested in over $5mm in transactions with two other agencies, so it will be interesting to see how this works out on a larger scale.

  • Read more…

Also in the news:

Market Outlook:

Quick Take

Direction: Bitcoin experienced a slight pullback this morning, trading down at 6600 from the 6700 level it was flirting with over the weekend. I’m expecting some consolidation around this 6600 support, and sideways trading for some time. Based on the strength of the altcoin market, and volumes flowing back, I’m expecting another bounce here to the 6800 level. I’ll be watching the 6520 level as resistance turned support. Unless we break below that level, I’m expecting bullish movements over the coming weeks.

Key Support:  6600, 6520

Key Resistance: 6700, 6780

Fear & Greed

Here’s a reminder of what these criteria mean

CoinSavage: Truth in Crypto

There’s a big problem with crypto trading. Too many fraudulent actors. People actually take trade signals from random people in twitter— with no way to vet anything.

CoinSavage is the platform to change all of that. They have built a fantastic (and free) platform where all portfolios, trades, and ideas are open sourced and timestamped. No more hindsight TA, now you can actually see for yourself if people are performing, or prove to your audience you know what you’re talking about.

Around the corner:

What I’m thinking today:

The Bitcoin Bug - A Story of Negligence

On September 20th, one of the most significant bugs in Bitcoin history was revealed to the world. Known as CVE-2018–17144, it was an exploit that allowed the abuser to both shut down the entire Bitcoin Network (a DoS attack), and create new coins out of thin air, inflating the coded hard cap of 21M Bitcoin.

It was originally reported that the bug was just a DoS attack. While bad, the initial reporting paled in comparison to the truth of the matter. The bug essentially amounted to allowing a double spend on the Bitcoin network, which would have fundamentally broken the trust in Bitcoin.

The origin of the bug was a pull request in 2016, that saved 600 milliseconds when it came to block processing times. The bug lived in Bitcoin Core clients for 2 years before being discovered by Awemany — a Bitcoin Cash developer.

There are a few things to take away from this experience, both equally important.

  1. Tribalism is bad for cryptocurrency. Focusing our efforts on which cryptocurrency is going to win is a waste of energy. If the end goal is decentralization of money and disintermediation of the current system, it shouldn’t matter which currency wins out. All that matters is we have the best solution possible.

  2. Cryptocurrency is still entirely experimental, and Bitcoin is still a long shot. There are many solid arguments to be made in favor of both Crypto and Bitcoin, and I happen to believe them. This does not mean that I believe them blindly. It’s important to consistently test assumptions in this space — and to realize that there are no truly “correct” answers yet.

I’ll end this with a quote from Awemany:

“I simply want to take the opportunity now to urge caution for everyone here. Bugs lurk everywhere. Everyone is imperfect. Myself included, of course. I started to like Jihan Wu’s credo of ‘Don’t play hatred, don’t wish competing coins ill. Just wish and try to make BCH better’ and see BCH and BTC in fierce but still civil competition. Civil competition obviously meaning no violence, including no violence like attacking each other’s nodes.”

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