Self-regulation: US association ADAM draws up code of conduct for crypto companies

Well-known companies from the US crypto ecosystem are joining forces to form the Association for Digital Asset Markets (ADAM). The aim of the association is to establish rules of conduct for companies operating in the crypto market. As one of the first official acts, ADAM therefore announces the publication of a code of conduct.

The matter of regulation is complicated. Because unclear regulatory guidelines and the investigations against a whole series of ICOs in the USA clearly show one thing: the crypto market remains in the Wild West.

A current example of this is the Envion case. After crooked deals and a secret capital increase, the Swiss ICO is insolvent and leaves behind a large number of damaged investors, as BTC-ECHO reported.

Code of conduct planned for the Bitcoin revolution

One of the Association’s first Bitcoin revolution projects is therefore the publication of a Code of Conduct for companies operating on the Bitcoin revolution. The ADAM wants to address above all the topics of responsible trading of digital investments as well as ethical behaviour and transparency of business practices.

Such reports, however, damage the entire crypto landscape. Since the news about failed ICOs has been overturning, the scene has acquired an increasingly dubious image. ADAM wants to change this.

As the association announced on 27 November, it wants to do something about this toxic development. Finally, the association sees an urgent need for action with regard to crypto regulation:

„At best, the regulatory gaps create doubts and ambiguity for market participants. In the worst case, they promote fraud“.

Furthermore, ADAM intends to engage in crypto lobbying. The press release states, „ADAM intends to earn the long-term trust of policy makers. Through such efforts, ADAM will accelerate the formation of fair and orderly markets so that investors can operate in the market.

Galaxy Digital among the Bitcoin revolution members

The founding members of Bitcoin revolution are ten well-known companies from the US crypto environment. These include Cumberland, Galaxy Digital and the Stable Coin Paxos:

However, Duncan Niederauer, former CEO of the New York Stock Exchange, is the most prominent member of the board of directors of the merger. In the press release, Niederauer emphasizes the importance of conglomerates such as ADAM:

„Rules are of fundamental importance for the development of any market. More than 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The emergence of digital assets requires similar efforts that will clarify existing rules and give both investors and regulators the confidence they need to sustain this market.“

According to the merger, the number of members is expected to grow. Membership is open to companies from the crypto ecosystem.

Bitcoin: Google search volume increases despite bear market

The Bitcoin course has definitely seen better times. Nevertheless, public interest in the crypto currency continues to grow. This is confirmed by current figures from Google Trends.

If you let your eyes wander over the course of Bitcoin’s share price, two interpretations predominate: buy the dip before it goes uphill again and/or skim off profits while it is still going downhill.

Bear market or not: Public interest in Bitcoin secret continues to rise

According to Google Trends, search queries in Germany are currently at a level that was last reached in April of this year. During the months of sideways movement, the search interest for Bitcoin secret decreased steadily, while it is currently rising again.

Bitcoin secret search queries on Google: Germany is in the global trend
This puts Germany in line with the worldwide trend: here, too, search queries rose again for the first time to the levels of April of this year. As you can see from the Google Trends statistics, most search queries come from South Africa. This is followed by the Netherlands, Slovenia, Australia and Singapore. Germany ranks 19th, with Russia, Taiwan and Japan occupying the last three places in terms of Bitcoin search volume.

Correlation cannot be equated with interest in cryptosoft

However, the correlation between fluctuations in the Bitcoin rate and Google search queries is not necessarily equivalent to an interest in cryptosoft currencies in terms of content. Thus it is above all the returning volatility on the crypto market that makes the crypto currency currently interesting. This ultimately brings interest back into the focus of mainstream media without a crypto focus.

Added to this are the ongoing trench warfare in the Bitcoin cash camp, in which former friends Craig Wright and Roger Ver do not always fight each other at the highest level. In addition, as you can see from our Newsflash, everything revolved around the question of when the much sought-after bottoming out and thus the end of the sell-out would be reached. And when this will give investors a good (re-)entry opportunity.

Can Bitcoin hold its current position? Analysts say yes!

After a dry spell of over a month, the Bitcoin price rose to almost 950 EUR (about 1,023 USD). According to analysts, this should be a stable development.

After holding stable at almost 850 EUR (approx. 915 USD) since mid-January, the share price has been rapidly pushed in the last few days, passing the 1,000 USD and currently standing at 945.45 EUR (1018.08 USD).

Analysts, however, are not only enthusiastic about this development and wonder whether there will be further price movements beyond the 1,000 dollar level. Some say that it would take some more work (and breaking through an important resistance) for Bitcoin to remain stable at this level.

According to Petar Zivkovski, COO of the Bitcoin Trading Platform Whaleclub, $1,000 is a huge level to be broken in a truly sustainable way.

Many traders will take the opportunity to profit from the price development. This behavior will shape the next trading sessions: Some will be motivated to trade between $1,000 and $1,200 Bitcoin for fiat currencies. According to Zivkovski, this will make the upward path even steeper.

The cryptosoft market: an emotional roller coaster ride

Yesterday afternoon, the thousand dollar barrier was broken for the first time and this was not a scam. The crypto currency fluctuated around values slightly above thousand dollars and rose partially to 948 EUR (1,021 USD). What in the Western Hemisphere the $1,000 limit is a significant cryptosoft resistance is, according to analyst Tim Enneking, the ¥7,000 level in China.

This resistance has now also been breached: since tonight, 1 o’clock in the morning, the price has risen to over ¥7000. Enneking is therefore extremely optimistic:

„If the price breaks through these two resistances (the USD 1,000 and Yuan 7,000 limits), it becomes strong support!

Crypto Trader Markets in Concern

This enthusiasm is countered by the concern of crypto trader that the share price could fall again as dramatically as we were able to observe a few weeks ago: Within an hour, the price fell by EUR 130.

Arthur Hayes, co-founder and CEO of the BitMEX trading platform, blames the Peoples Bank of China for its decision to strongly regulate the Chinese Bitcoin exchanges.

Despite these developments, he has a positive view of the current situation.

„The market is calming down from the shock of the Peoples Bank of China regulations. And as this shock eases, the price will recover and approach an all-time high.“

Data from the market should confirm this cautious positive assessment. Data from Whaleclub confirms that the market has chosen 89% long positions, which is now the third trading session in which over eighty percent were bullish about Bitcoin.

The market has therefore – for the time being – recovered from the shock at the beginning of January.

The DAO Hack sequel – what’s next?

What happened to the thief after the DAO hack? A question you want to avoid even now, weeks after the big theft.

Questions from CoinDesk suggest that the Ethereum community has finally abandoned the search for the criminal individual or group – the money is now refunded.

Let’s remember: the DAO Hack has motivated a large part of the Ethereum community to become Hard Forks. The idea was that all Ethereum users would quickly switch to the new fork, so the DAO attacker would sit on his now worthless coins.

But what didn’t happen: the old blockchain was maintained by people who were critical of the Bitcoin loophole

Two weeks went by and Ethereum Classic – the Ethereum without Hard Fork – has reached a market capitalization of 200 million dollars. The market has given the Bitcoin loophole tokens, which used to be called ETC, the value of the fifth largest digital currency.

This development is not only interesting for investors and traders, but of course also for the DAO hacker…

In the event of a successful sale, the thief would get away with $8.5 million.
Sure, it’s small compared to the original stolen funds, but it’s still huge.

Currently you can see that the hacker has recognized the value of his stolen property: in recent days the funds have been moved within Ethereum Classic.

DAO Funds on the news spy

So onlinebetrug asks the question if and when the hacker wants to sell his values stored in ETC. The rules concerning the DAO regarding the the news spy of funds have not changed, so that the 27 days countdown, which is needed to remove the DAO funds after a split, came into effect again at Ethereum Classic.

Nick Johnson, software developer at the Ethereum Foundation (which supported the Hard Fork), explained how the DAO hacker could make a profit by converting the funds into another digital currency.

He suspects, but admittedly without further investigation, that the attacker was not among the curators. He therefore had to open another DAO in order to transfer the funds there in order to be able to control them.

The same interviews explain the desire to deprive the DAO hacker of his profit. But there are often no more than wishes.

Continue to the Rabbit Hole
The whole story’s gonna get more complicated anyway. Before the Hard Fork, an attempt was made to gain control over the funds as part of a White Hat hack. At the time of the fork, there were several DAOs, which in turn contained finds that could be stolen from the hacker’s DAO. Finally, these DAOs and their finds still exist on the Ethereum Classic Blockchain.

ETH has a total value of about 17 million dollars in two White Hat DAOs. It is still unclear how these values could be sold, who is behind each DAO and whether any efforts are being made to involve the original Token Holders.

Ethereum lead developer Fabian Vogelsteller and UX designer Alex Van de Sande both said they don’t know what to do with the resources or who owns the corresponding private keys. Ultimately, however, that’s not where their interest lies, which is entirely on the post-hard fork blockchain.

According to them, the hacker will get away with his stolen property. Van de Sade comments on it maliciously:

„I don’t know what will happen to the White Hat DAOs. But the people behind the Dark DAO got away with a lot of Ether Classic. And that’s what Ethereum Classic was about, right?“

The goalkeeper
For the hacker, this leaves the Ethereum Exchanges as a possible final boundary between the funds and his profit. However, there are problems here: although it is quite easy to exchange money for the currency of your choice via Exchanges, the hacker will be disturbed by the AML and LYC rules.

According to Tristan D’Agosta, the founder and CEO of Poloniex, the next step would be to
the hacker’s conversion from ETC to BTC. However, if there is movement in these funds, the attacker will have difficulty hiding – which will be difficult on a public blockchain.

Kraken, the second largest Ethereum Exchange, did not want to answer the questions.

Europol: Monero, Zcash & Dash hinder our work

Monero, Zcash and Dash are Altcoins with a focus on preserving the anonymity of users. They pose a major problem for Europol investigators. In contrast to Bitcoin, it is not possible to follow the trail of money from the merchants to the customers of the online marketplaces in Darknet and elsewhere. However, according to security researchers, most transfers take place via Bitcoin in the grey area.

In a recently published annual report for 2017, the European police authority Europol complains about the increased use of certain old coins in the grey area. In the PDF document, Zcash and Monero even had their own paragraph dedicated to them. Monero was issued for the first time in 2014 and is now regarded as the preferred choice in the grey area. When in summer 2017 the illegal trading centres Hansa Market, and AlphaBay were taken off the net by Europol, this was the test of example for the Monero. Despite all their efforts, the police have still not succeeded in tracing the payments of these marketplaces for e-books, drugs, forged passports or weapons. The policemen have to follow other tracks in their research.

The Monero protects users‘ privacy by default, which is not the news spy

In contrast to the Bitcoin, you cannot view the scam publicly as proven by onlinebetrug. Also nobody can get out the Wallet address of the senders or receivers. According to the security researcher Tom Robinson from the company Elliptic, most transactions are nevertheless carried out by criminals in Bitcoin. It may be due to the news spy convenience of the well-known procedures or to the fact that there are many more trading places that accept Bitcoin. The pseudo-anonymous BTC transfers, however, involve some risks, as most crypto portals require you to register with a copy of your identity card and deposit your current address. Many in Darknet believe that they are being clever with their Bitcoin payments, Europol employee Jarek Jacubcheck told colleagues at the Business Insider. But the truth is that they leave permanent traces that can be easily traced, Jacubcheck said. As we have already reported, there are attempts to link the wallet addresses with data from social networks, underground forums and Darknet marketplaces in order to establish connections with regard to the owners of the wallets.

This is not so easy with the Bitcoin secret

Since the coins are automatically mixed during dash, they are popular with many criminals despite the Bitcoin secret. Still others have their Bitcoin wallet mixed by a mixing service in order to remain unrecognised. However, this costs them 1 to 3% of their credit. Trading venues with Monero, Zcash and Dash in their portfolios are not very cooperative with official enquiries, which is not surprising. Tim Court of the Bitcoin secret said publicly that such trading venues actively obstruct investigators‘ work by steadfastly refusing to disclose any information about their clients. So it remains to be seen whether Monero & Co. will remain as secure for its owners as they are today. Whether the strong data protection is morally reprehensible, each user must decide for himself.