Top Stories This Week:
Kik Launches $5 Million Crypto Funding Campaign for Lawsuit Against U.S. SEC
Kik, a Canadian tokenized social media startup, has launched a $5 million crypto initiative in order to fund a lawsuit against the United States Securities and Exchange Commission (SEC). Kik CEO Ted Livingstone, also the founder of Kik’s crypto project the Kin Foundation (KIN), announced the formation of the Defend Crypto fund, which plans to legally challenge the SEC to get regulatory clarity surrounding the definition of securities in regard to cryptocurrencies. The fund will use major U.S. crypto exchange and wallet Coinbase’s custody service. The DefendCrypto campaign comes in the wake of the SEC’s actions against Kik’s $100 million initial coin offering (ICO) sale held in 2017, after which the regulator said that it had violated securities laws.
Circulation of Facebook’s Crypto Could Face Demographic Challenges
Facebook’s payment-focused cryptocurrency, reportedly called GlobalCoin, could face demographic challenges, according to research from crypto analysis firm Diar. According to Diar, Facebook’s long-rumored native cryptocurrency that will reportedly launch in 2020, could face the aforementioned challenges due to the aging demographics of the social media giant’s user base. The older generation that uses Facebook reportedly does not have enough awareness about digital currencies, and Facebook’s younger user base purportedly is not wealthy enough to use the rumored coin in a significant way. Diar also noted that Facebook will need to enter into partnerships with traditional financial institutions.
North Korea Launched Cryptocurrency Attacks in Response to Sanctions, Says FBI
According to a senior FBI official, U.S. sanctions incentivized North Korea to launch cyberattacks involving cryptocurrency. Tonya Ugoretz, deputy assistant director of the FBI’s cyber division, said at an event this week that the financial strain brought on by sanctions meant that North Korean state actors had turned to cybercrime as a way of bringing in money. Pyongyang is suspected to be behind several major campaigns involving cryptocurrency ransomware and theft in recent years. Erin Joe, director of the Cyber Threat Intelligence Integration Center under the U.S. Director of National Intelligence, said at the same event that there is a “huge effort in the FBI, and also several other entities across government, looking at ways to stop malicious activity (surrounding) cryptocurrency.”
Cryptocurrency Broker Client Reportedly Aims to Acquire 25% of All Bitcoin Supply
Forbes reported this week that digital currency investment firm Dadiani Syndicate was reportedly approached by a wealthy client to buy as close to 25% of the bitcoin supply as possible. The firm, a peer-to-peer network where people trade with each other in crypto, made news last year when it put 49% of Andy Warhol’s 1980 work “14 Small Electric Chairs” up for sale for bitcoin and other digital currencies. This week, the firm’s founder said that “one of our clients approached us and said they were interested in acquiring 25% of all bitcoin currently available. There are a number of entities who want to dominate the market.” However, Dadiani noted that acquiring a quarter of the current 17.7 million BTC supply would not be possible without significantly affecting the market.
Winners and Losers
The crypto market is slightly down, with bitcoin at around $7,721.19, ether at US$ 243,65 and XRP at $0.42. Total market capitalization is at about $247 billion.
The top three altcoin gainers of the week are crystal token, doge token and mindexcoin. The top three altcoin losers of the week are cyberfm, soundac and agrolot.
Prediction of the Week:
Kenetic Co-Founder: Bitcoin to Trade at $30,000 by Late 2019, Regardless of Bitcoin ETF
Jehan Chu, co-founder of Hong Kong-based blockchain investment firm Kenetic, predicted that bitcoin (BTC) will rally as high as $30,000 by the end of 2019. Speaking in an interview with Bloomberg Markets: Asia, Chu said that bitcoin will continue its bullish direction in line with the rest of the crypto market in 2019 due to three factors: mass adoption by institutions like Facebook, JPMorgan, Rakuten and Fidelity, the crypto industry’s ability to become a “better tech story” about the Uber and Lyft IPOs, and the upcoming bitcoin halving.
President of Germany’s Central Bank Warns of Serious Outcomes of Digital Currencies
Jens Weidmann, the president of Germany’s central bank, the Deutsche Bundesbank (BBk), has warned central banks about the potential risks of introducing digital currencies. Weidmann, who is the BBk president as well as chairman of the board of the Bank for International Settlements (BIS), reportedly said that banks adopting digital money could potentially destabilize the financial system during periods of crisis. In his opinion, easy access to digital currencies could facilitate a collapse of lenders, and would even “fundamentally change the business model of banks” in a good economic environment. He also put forward the idea that easy access to digital money has the potential to lead to increased volatility.
Researchers Say 50,000 Servers Worldwide Infected With Privacy Coin Cryptojacking Malware
An analysis by international hacker and cybersecurity expert group Guardicore Labs has revealed that as many as 50,000 servers worldwide have allegedly been infected with an advanced cryptojacking malware. The malware in question mines privacy-focused, open-source cryptocurrency turtlecoin (TRTL). The campaign was first detected in April, with Guardicore Labs finding that the malware has infected up to 50,000 Windows MS-SQL and PHPMyAdmin servers over the past four months worldwide. The expert group states that the malware campaign is not the usual crypto-miner attack due to its reliance on techniques commonly seen in advanced persistent threat groups, including fake certificates and privilege escalation exploits.