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A Wall Street Journal report has recently come out which states that the now expired founder of Canadian crypto-exchange firm QuadrigaCX may have spent a portion of the money entrusted to him on personal expenditures. The WSJ derived this information from reports that were released a week ago by court-ordered investigators.

CEO Gerald Cotton was said to have been suffering from Crohn’s Disease which led to complications resulting in his eventual death in December 2018. The company has said that Cotton was the only person who could access the exchange’s cold storage, which is where client holdings were stored.

CQX Holdings was audited by Ernst & Young when the firm declared bankruptcy in January, this year. The auditing company found that most of these wallets contained a deficit of crypto owed to the clients and were drained approximately 8 months before the CEO’s unfortunate demise.

The exchange that should have had deposits amounting to $214million only had about $33 million at the time of audit. E&Y believes that Cotton siphoned off money from client accounts in Quadriga to accounts he held illicitly under assumed names.

There were instances of some significant transfer of funds to the CEO and his wife’s accounts. Neither of them had any income source outside the crypto exchange and yet did not seem to have filed any tax returns on any income derived from the company. Despite this, the couple frequently took foreign vacations using private jet services and also had multiple assets including real estate.

The transfers that the audit firm discovered had no supporting documents to prove their credibility. They also found cash transfers into QuadrigaCX accounts but couldn’t verify if these transfers were made into user accounts. E&Y said they found no documentation on financial transactions facilitated by the company since as far back as 2016.

 

Reasons For India To Not Ban Cryptocurrencies

India is on its way to coining a digital rupee and yet, at the same time, it is making provisions to outlaw the possession of cryptocurrency. If this law came into being, you could have to serve jail time if you were caught in possession of crypto. As such, the Reserve Bank of India has already banned cryptocurrency. India should be more pragmatic and consider using crypto payments for foreign transactions.

Cryptocurrencies have earned themselves a bad reputation due to their market instability. But not all virtual currency based on blockchain technology are the same. There’s the stablecoin, which is a more reliable alternative as its value is linked to flat currency and is regulated by banks like any other financial asset. With stablecoin, you’d be able to carry out international exchanges where a US stakeholder isn’t involved without having to use the dollar at all.

As much as we may be loathe to admit, no international financial transaction today can be made without using the dollar. Banks too cannot afford to deal without the USD. The Americans can wield this dollar supremacy around and have other nations at their beck and call. The stablecoin enables people here to carry out financial transactions even without using the USD as a medium.

Creating a payment mechanism that can tackle this dollar supremacy is no less than a political task. It is only possible today by using blockchain-based currency. When India refuses to take part in such an exercise, they are in essence making a political statement by not participating in a coalition of non-US nations to overthrow this hegemony of the dollar.

Sure, money laundering and heists are very real threats with blockchain currency, but these can be managed if all heads were to be put together to come up with solutions for the same. India should be a leading voice in decrying such a monopoly of the global financial system than bowing out of the race.

 

California Society of CPAs Demands Greater Clarity in Crypto Accounting and Disclosure Rules

California CPAs have complained against the paucity of clear guidance in U.S. GAAP, which is the base accounting protocol followed in the States. They desire more clarity in accounting and disclosure rules with regard to cryptocurrencies.

The main contention of the committee, which presently consists of 54 members, is the diversity in the reporting methods used by companies who itemize crypto on their financial statements. The committee is unsure if these methods wholly represent the risk of dealing with crypto.

The confusion is the different ways in which digital assets are looked upon. The perception of these assets depends largely on the circumstance in which they are viewed. At fair value, it can be recorded at lower costs in the market or as intangible assets. You can pass off crypto assets as anything really, from working capital to a commodity/investment, says co-founder of Alternate Tax Solutions, Andrew Parrish.

The Financial Accounting Standards Board states that most institutions interpret and define cryptocurrencies as indefinitely-lived intangible assets under ASC 350 or Intangibles – Goodwill and Others. However, this definition isn’t all pervasive across companies and should cause more confusion in the time to come as crypto enters the balance sheets of more and more companies.

Nancy Rix, Chairperson on California CPA’s accounting principles and assurance services committee, stressed in a letter to FASB about her belief that cryptocurrency usage will only gain more mileage with time and expand in volume and the manners in which it is applied.

CalCPA believes that FASB’s current classification model is suited for accounting with foreign currencies. The addition of updated rules would make dealing with other currencies in use already for investment and exchange easier. Rix believes it’s only a matter of time before major public companies begin using crypto as established by the issuance of JP Morgan’s JPM Coin. As such, clear crypto accounting rules will be of utmost necessity.

 

Even those who’ve remained hesitant against believing the efficacy of other forms of currencies have started making efforts to know more about cryptocurrencies and Blockchain technology. The fact is that cryptocurrencies are getting more and popular. Among the many ways to know the latest news or trends in this fascinating market, following the Twitter accounts of well-known masters in the field is an effective one. Let us now look at the top crypto Twitter accounts.

 

1. Andreas Antonopoulos: @aantonop

Even a casual glance at the Twitter account of Andreas Antonopoulos will reveal that he has been one among the well-known advocates of Bitcoins for the past years. It was during the year 2017 that he became highly popular. Recognizing his popularity and great work, he was donated 100 Bitcoins by the crypto community. He hosts a fabulous podcast known as “Let’s Talk Bitcoin” about the cryptocurrency sector.

2. Luke Martin: @VentureCoinist

Among the foremost traders of cryptocurrencies, Luke Martin stands tall and specializes in technically analyzing these currencies. The charts he shares and the commentaries on his Twitter account stand testimony to his prowess in this field. His daily live-webinars are very much sought-after by regular traders.

3. Roger Ver: @rogerkver

You will find Roger Ver’s name among the early investors in Bitcoins. He is also famous for being the creator of Bitcoin Cash. Purists consider Roger Ver as a divisive figure who played a vital role in the “fork war” that erupted during the latter part of 2018 in the realm of Bitcoin Cash. Despite this view of purists, over 500,000 people follow his Twitter account.

4. CoinTelegraph: @Cointelegraph

Those who’re very much eager to know the latest news about cryptocurrencies find CoinTelegraph very much useful. These followers will not only get the latest news they desire to know but will also have the benefit of accessing the opinions of masters in the field.

 

It is a known fact that the popularity of Instagram has been growing by leaps and bounds in recent times. Those who use the platform are able to safely know the latest updates as well as insights about whatever topics they are interested in. To put it differently, some experts use Instagram for influencing others in their fields. Let us now look at a few of the top crypto influencers on this platform.

 

Joseph Steinberg
Apart from possessing expertise in cybersecurity, Joseph Steinberg has been doing tremendous work by offering invaluable advice on Blockchain. His regular contributions to Inc.com, Forbes, and a host of other online platforms are regularly followed by hundreds of thousands of people interested in cryptocurrencies. Joseph Steinberg has been a regular attendee and an active participant at almost all the major events pertaining to Blockchain. He often visits major universities for lectures on the uses of Blockchain technology as well as the issues that may crop up in it. He has over 24.9K followers on Instagram which means that he is a renowned figure in the spheres of cryptocurrencies and blockchain.

 

Armando Pantoja
Apart from being a software engineer, Armando Pantoja is an expert on Blockchain as well. He has given lectures on almost all technological innovations that have taken place in the arena. The recent sale of his website on cryptocurrencies for a huge amount of US$2 million created big waves all over the world. As a tech entrepreneur, Armando stands tall among the most sought-after in the cryptocurrency and Blockchain realms. His follower base on Instagram runs to 7.6K.

 

The Korean Jew Trader aka Jake

Being a successful cryptocurrency trader, Jake shares his success stories and journey on his Instagram platform of 7K followers. His account stands as a testimony as to how cryptos are gaining prominence in the Korean market and how Korea has become a haven for cryptocurrencies.

 

Though everyone is ready to believe that there are a number of people or institutions that have created legacies worth billions of dollars in the money market, not everyone will believe that there are people or financial firms that have invested in cryptocurrencies and have amassed wealth. Let us now find out more on some of the top Asian crypto investors.

 

1. INBlockchain

INB is one of the top investment groups in the blockchain space in China. The partners of the group find a place in the list of the single largest investors and holders in the Bitcoin space. In fact, their holdings have increased more than nine thousand-fold till date. The investor group runs an incubator as well as a product-studio.

 

2. Node Capital

Node Capital stands among the earliest investment institutions of the world that focus on the Blockchain industry. The aim of this China-based institution has always been to build a robust ecosystem in the industry. They have invested in almost 200 enterprises and this number has only been growing at a rapid pace. Their investment portfolio covers almost every nook and cranny of the industry’s ecosystem that includes exchange, media, crypto asset wallet, and so on.

 

3. HyperChain Capital

Hyperchain Capital is also one among the first asset management companies that have been focusing on Blockchain-based projectsThey have also been offering consultancy services for the benefit of Blockchain-protocol projects. The asset management company participated in the first ICO of 2013 as well.

 

4. Marvelous Peach Capital.

Marvelous Peach Capital is a cryptocurrency-focused investment firm. Other areas on which they focus include Blockchain technologies, digital assets, and decentralized applications. The firm has been co-founded by Discus Fish of F2Pool and Taiyi Capital. F2Pool finds its place among the world’s most comprehensive and largest mining pools and has major shares of hash rates in a number of cryptocurrencies. Taiyi Capital provides financial services to many A-share listed companies.

 

More and more crypto traders are taking to social media to share their crypto market predictions and investment advice. Some have managed to gain themselves millions of followers, turning them into influencers in the cryptosphere. If you are interested in making investments into cryptocurrency or blockchain, following what these influencers have to say is a good idea. Here’s a list of the top social media influencers in the cryptocurrency sector to watch out for –

• Nicholas Merten – Nicholas Merten is a data analyst and successful crypto trader who runs his own YouTube channel by the name of DataDash. He posts a video everyday and is a reliable source for new policy updates and chart analysis of trends in the cryptospace.
• Chris Larsen – Richest person currently in the crypto industry as per Forbes, Larsen is the chairman and co-founder of Ripple. He has a modest follower base of 20k users on Twitter. However, this modest number in no way impacts the influence Larsen commands over the industry. XRP – Ripple’s very own digital currency has consistently found pride of place in every Top 10 list of cryptocurrencies in the last two years.
• Eric Choe – Choe has a Twitter followership of around 116k people. An Economics graduate, he is a well renowned crypto expert who is sought out for his knowledge and experience. He started trading in crypto during the crypto boom and found success based on his skills. Eric also runs a website at cryptochoe.com which you may refer to for more of his thoughts and insights.

CryptoDaily and CryptoYoda are some other interesting and easy-to-understand crypto influencers you can find online. Any information that you may need for your crypto investments, you will find on their pages. Crypto market knowledge sourcing has gotten so much easier now – all you need to do is follow these influencers and you’re good to go!

Franck Muller, the Swiss luxury watch maker has begun to sell Bitcoin watches. The Encrypto Watch comes with its very own public address that is etched on the dial and a sealed USB contains the private key. Owners of this watch will be able to add BTC to their wallet and keep a watch over their balance through this dial.

Muller partnered with crypto investment company, Regal Assets to come up with this unique watch. The watch’s cold storage wallet depends on offline-generated non-deterministic True Random Numbers Generated or TRNGs to ward off hackers.

Every model of the watch contains a dial which has a QR code of Satoshi’s Genesis Block address and a custom-designed “B” inside the emblem of the circuitry.

The watches are available for both men and women and are priced between $10,780 to $55,880.

 

Democrat President Hopeful Welcomes Crypto Donations

Eric Salwell, the presidential candidate for Elections 2020 from the Democratic Party has declared that he will be happy to accept cryptocurrency donations in support of his campaign.

Blockchain firm – White Company will help the Bay Area congressman facilitate the donations and align them with Federal Election Commission regulations.

A Stellar-based stablecoin is being used by the crypto payment platform so that every individual donation can be verified separately. Salwell can gain instant access to the funds gathered in his favor as the transaction fees are literally less than a penny and the funds settle in a matter of three seconds.

Salwell is appreciative of the technology and believes that US regulatory policy too needs to be inviting of such new technology innovations. He says that since most of our world today exists online, there is no reason our economics shouldn’t transfer online too.

 

Bitcoin broke free from the $8000 market it had been restrained to on Sunday and shot all the way up to $8,750 to everyone’s surprise. The bullish momentum may have lost pace for the time-being but crypto experts are convinced that the number will only go higher with the week ending.

 

BTC Gain Catches All Unawares

When BTC crossed the $8,200 mark and then the $8,400 and $8,600 mark one after the other – investors believed that this was a ploy to trick bulls into thinking that the market would close strong at $8,400 i.e. the figure the market closed at amidst the bear market rally in mid-2018 and also where it double-topped in early-May.

It was beginning to be feared that BTC was going to scale back just as rapidly as it had climbed. However, these worries were put to rest when Bitcoin’s weekly candle closed at midnight with a significantly strong performance over the last week. LiveCoinWatch has stated that BTC is up 6.75% on the week.

Investors and crypto traders are now hopeful after this bullish end to last week that BTC may actually rise up to $9,600-$10,000. Noted analyst Josh Rager reinforced the same opinion. He said that the strong close indicates that BTC may actually move up to $9,600. He tweeted in favor of the same.

Tuur Demester of Adamant Capital is even more optimistic. He opines that if BTC continues with its current trend, it may rally by 40% or around $3,000 to reach $11,000 by the time June rolls around.

 

Is Crypto Winter Over?

The question on everyone’s lips now is this – Is Crypto Winter finally over then? If we are to believe Fundstrat Global Advisors, that may actually be the case!

 

CoinMarketCap is a six-year-old website which keeps track of the market capitalization of cryptocurrencies such as bitcoin and 2100 and more altcoins. People rely on this website as a valid way to measure the market.

Although CoinMarketCap has been a go-to website in the cryptocurrency space, it is hard to argue that it is not complicit in reporting false crypto volumes. A report published in Bitwise affirmed that 95% of all the Bitcoin volume in the cryptocurrency exchanges was actually fake. According to a report in Wall Street Journal, prices for some of the most popular cryptocurrencies dropped sharply when CoinMarketCap changed its data. CoinMarketCap came under fire for relying on faulty data when calculating exchange trading volume.

 

Luke Wagman’s stand against Bitwise report

Luke Wagman, the Chief Evangelist at CoinMarketCap stated that fake trading volumes are not specific to CoinMarketCap. He said that it is an industry-wide issue without an easy solution.

Wagman also mentioned that the website would provide more information to users so they can draw their own conclusions. He said that by giving control, users could evaluate the exchanges rather than actively policing. He also added that from a business point of view, delisting exchanges with fake trade volumes was not a solution as it would be met with criticism. It would also make CoinMarketCap a mediocre source of information source.

Wagman added that there is no simple or easy solution for such a big problem. But CoinMarketCap announced an initiative with Data Accountability & Transparency Alliance in an effort to calm the damage caused by the fake trade volume allegations. In addition, all exchanges listed on CoinMarketCap were given a 45-day deadline to send live trading and live order book data. This data would be used to determine liquidity, order book depth, and spreads.

In an attempt to repair the tainted image, CoinMarketCap DATA will promote accountability, greater transparency, and disclosure from projects in the crypto space. To make it easier and more intuitive to explore and interact, it will also introduce a new blockchain explorer for a more down-to-earth interface