Calvin Ayre: Long term value only comes from utility

Hedge your bets, because casino-like speculative trading in the cryptocurrency sector will be over soon. And what will replace these speculative exchanges, according to CoinGeek owner Calvin Ayre, is an exchange model that will be fiat on- and off-ramps into secondary markets for tokens built on top of the Bitcoin SV (BSV) blockchain.

“There’s a lot of confusion around what’ happening with short-term token price, and token price right now is, first of all, a lot of it is artificial, it’s being manipulated by exchanges, exchanges aren’t regulated, a lot of people are getting hurt, and I’m hoping that over the next two years that we’re going to see I think it’s starting already, that governments are going to step in and get some kind of sanity in what’s going on,” Ayre said at the opening of the CoinGeek Seoul Conference in South Korea.

And the end of the day, he said, “long term value only comes from utility.” And as government step in, expect more anonymous tokens to be outlawed globally.

“The real world economy is going to be run by tokens that work inside the law. And BSV as an example not only platform that scales, it’s also dedicated to not changing this protocol which makes it a safer target for developing to, but it’s also designed to work inside regulatory environments,” Ayre noted.

It’s why BSV is the only option in the world today, particularly for application development. BSV, after all, is the only one that currently scales and represent real-world value of some sort—from securities to commodities, or even concert tickets.

“It’s all about scaling. At the end of the day, when you’re looking at these platforms from the perspective of application development whether for startups or enterprises, if it doesn’t scale you’re not going to get microtransactions and you’re not going to be able to create unique business models,” he explained.

The power of scaling takes the center stage at the CoinGeek Seoul Conference, with members of the cryptocurrency and blockchain community gathering at Le Meridien Seoul on Oct. 1 and 2 to discuss all the exciting developments happening on the BSV ecosystem.

“This conference is all about us spreading information about what’s possible on this technology and us wanting people that are involved in some facet or another on these other platforms that have technical challenges telling them that the technical challenges have all been solved here and there’s no need for you to keep over there, stay over there hoping that they can solve them when we’ve got them all solved,” Ayre said.

Read Calvin Ayre CoinGeek Seoul Conference welcome address:

Welcome to CoinGeek Seoul, our fourth technology conference, following our successful events in Hong Kong, London and Toronto. However wonderful those other events might have been, CoinGeek Seoul is unique, as it comes at a particularly extraordinary moment in time.

It’s been nearly one year since the hash war that helped secure the future of Bitcoin, by which I mean Bitcoin’s original protocol, which will soon be locked in place so that companies can focus on development. Early next year, the Bitcoin Satoshi Vision network’s Genesis upgrade will restore all remaining opcodes from Satoshi’s original design, after which the protocol will be locked down. After years of frustration, businesses will finally have a stable and scalable foundation on which to build, and with it the confidence to take risks, knowing that the ground won’t be shifting under their feet.

The past year we’ve seen record-breaking blocks mined both on the STN Testnet (2gb) and in the wild (256mb). The Genesis upgrade will go even further, removing all artificial caps on blocksize, thereby empowering miners to set limits as they see fit in an infinitely scalable environment.

My good friend, Dr. Craig Wright created Bitcoin not as a passive store of value but as a tool. A tool that allows the world to create, to build, to earn and – most importantly – to use. BSV is currently only teasing it’s potential, but in the coming months the world will begin to discover the infinite depths of this potential.

It’s truly an exciting time to be alive.

At long last, the greatest invention of our time is being unchained from its shackles and the commercial world will never be the same. Businesses are being handed a golden opportunity to blaze new paths, to build applications that solve real-world problems through the benefits of blockchain technology, safe in the knowledge that the rules underpinning this technology won’t change after the game is begun.

Given all the disinformation that plagues our industry and the seemingly non-stop emergence of fly-by-night ‘me too’ coins, it’s truly amazing how BSV has managed to achieve such traction in such a short period of time. 

It’s easier than ever to buy BSV as more exchanges offer it for trade and sites like allow people to buy directly with fiat currencies.

Applications like Twetch, WeiBlock and Streamanity are giving people the ability to earn BSV by creating content that engages audiences. Bypassing traditional social and video channels, content creators are now making money directly from their viewers without the need for middlemen.

And how can we forget Unwriter, who has provided a vast array of tools that allow developers to begin building with BSV both swiftly and efficiently.

Over the next few days, we’ll hear from some of the people behind such success stories, like Paul Chiari, whose on-chain weather app WeatherSV has given us a glimpse into the future of mining profitability. As the block rewards continue to halve, it’s these sorts of apps that will enable continued growth in transaction volumes, ensuring that miners continue to earn a just reward for securing the network.

In the years to come, the continued success of BSV will be down to you, the builders who develop the next killer app, and the investors who empower creators to exploit BSV’s limitless potential.  

The next few days here in Korea will prove both exciting and informative. Your mission, should you choose to accept it, is to take the lessons learned here and spread the gospel of BSV through the fruits of your labours. The future is here, now, and you have a role to play. The platform on which we stand is stable and ready to support whatever you want to build and whatever your imagination can conceive.

And so, ladies and gentlemen, architects of the future, I welcome you all to the fourth CoinGeek conference, Seoul 2019.  

Watch the CoinGeek Seoul Conference Day 1 livestream here.

Watch the CoinGeek Seoul Conference Day 2 livestream here.

3 crypto exchanges suspended in Philippines’ economic zone

Three virtual currency exchanges in the Philippines province of Cagayan have been suspended by local authorities, in order to allow for more thorough due diligence into licensees, ABS-CBN reported.

The Cagayan Economic Zone Authority (CEZA) ruled that its crypto exchange licensees would face temporary suspensions amid a move to Cagayan, with some 40 firms currently holding licenses that would be subject to the suspension.

This includes 25 firms licensed by the authority on an off-shore basis alongside 15 firms holding regular licenses. As of Wednesday, only three of the firms are active.

Golden Millennial Quickpay, Liannet Technology Ltd and Asia Premier are based in Metro Manila. Their licenses will be temporarily halted as they move to oversight by the Cagayan Economic Zone Authority.

A senior official said this would allow the authority to conduct due diligence into the firms, amid reports of fraud in the sector.

Chinese-based offshore firm Golden Millennial Quickpay was raided by law enforcement officers last week, with 270 of the firm’s staff arrested as part of a probe into alleged investor fraud.

As part of the investigation, the firm has had its license suspended for 90 days, with the threat of revocation if wrongdoing is confirmed.

CEZA spokesperson and Fintech and Cryptocurrency business officer Mike David was quoted by the news outlet saying the suspensions would be temporary until the authorities could gain a better understanding of how its licensees operate.

Their operation is temporary. We are pushed by our circumstances because of the lack of our facilities in Cagayan. After the incident, there can be zero tolerance until movement to Cagayan.

Allegedly running a crypto investment scam, David said Golden Millennial Quickpay has alarmed the authority and was one of the main drivers of the licensing review.

“How can an exchange commit fraud? Maybe there are virtual agents or brokers that could have penetrated the exchange. We are alarmed by this incident. There are external factors, elements and we are looking into that also,” David said.

The move shows the challenges faced by regulators in upholding standards in the crypto sector.

Far too many scams and fraudulent companies continue to operate, sometimes even with official licenses to trade, highlighting the importance of effective governance and regulation for the sector.

Bitcoin SV now available in Brazil

Bitcoin SV (BSV) is becoming the cryptocurrency of choice for users and developers worldwide. The ease of use, low transaction costs and developer-friendly ecosystem mean BSV is increasingly the natural choice for consumers, merchants and app developers.

Now, the flexibility of BSV has become available for users in Brazil, opening up access for millions of consumers and merchants for the first time.

The news comes following the decision of local cryptocurrency exchange 3xbit to list BSV, in response to growing demand for access to Bitcoin SV. As a result, exchange customers will now be able to buy and sell BSV through the platform, as well as being able to send BSV from their accounts.

The listing has been welcomed across social media, where the news has been well received by 3xbit users keen to access the technology and utility of BSV locally.

It comes at a time of increasing adoption worldwide, as more people switch on to the benefits of Bitcoin SV in affording low cost microtransactions, mass scale potential and fast processing times.

Bitcoin SV is the only cryptocurrency true to Satoshi’s original whitepaper vision, and the only cryptocurrency capable of handling efficient payments on a global scale. With the Brazilian rollout, BSV comes one step closer to fully global adoption.

In choosing to support Bitcoin SV, 3xbit becomes only the latest exchange to show support for the cryptocurrency. At the time of writing, the currency had jumped over 1.34% on the exchange on the day.

The news comes ahead of the upcoming Quasar upgrade, scheduled for July 24. The upgrade is set to make BSV truly unique in its utility model, and will minimize the need for cryptocurrency exchanges altogether. With access to an on and off ramp to fiat, the upgraded protocol is expected to help BSV reach mainstream traction even sooner, with its unique scaling potential setting BSV apart from the rest.

The decision from 3xbit to list BSV is already proving to be a good decision, at a time when numerous other exchanges worldwide are in the process of onboarding BSV for their users.

Messaging giant Line announces crypto exchange plans

Messaging giant Line announces crypto exchange plans

In the latest embrace of cryptocurrency exchange by a mainstream company, messaging service Line announced on Thursday its plans for a new cryptocurrency exchange.

The service, which is Japan’s leading chat app, currently sees over 168 million users a month, and is expected to leverage its customer numbers in launching its proposed cryptocurrency exchange.

According to reports, Line has already established a subsidiary, called Line Financial Corporation, to work on the proposals.

“Going forward, Line will use this new company as a base as it proceeds with preparations to provide a variety of financial services, including a place to exchange and transact virtual currencies, loans, and insurance—all from the Line app,” the company stated.

Notably, the company already runs Line Pay, a corresponding payments service that already processes over JPY450 million (USD4.10 million) as of last year. As part of their Line Pay service, the company has secured partnerships with over 30 different banks and financial institutions, giving Line a strong foothold in the financial and banking ecosystems.

While it is not yet clear whether the new exchange business will integrate with Line Pay, some analysts have highlighted the clear opportunities for synergy the exchange business could provide.

According to Japanese regulations, domestic cryptocurrency exchanges now require the approval of the financial regulator before they can open their doors. According to the statement from Line this week, that process is already well underway.

“The application process for registration as a virtual currency exchanger has already been started with the Financial Services Agency, and it is currently under review,” Line stated.

The FSA review process is thought to take an average of around two months, which could see Line gaining approval before the end of March on current timelines—and potentially sooner.

The application comes at a time of intensifying scrutiny of cryptocurrency exchanges in Japan and elsewhere in the world, as regulators and governments look to tighten their grip on cryptocurrency regulation.

Nevertheless, the move has been seen as an attempt to replicate the success of their South Korean rivals, Kakao, which launched Upbit, now the country’s leading cryptocurrency exchange.

It remains to be seen whether the Line offering can win the approval of regulators, and go on to capitalise on their strong reach within the Japanese market.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Investors call ‘Crypto-Wonderland’ BitConnect a Ponzi scheme

Investors call ‘Crypto-Wonderland’ BitConnect a Ponzi scheme

Cryptocurrency exchange BitConnect is embroiled in a legal battle with a group of investors who accused the company of operating a “wide-reaching Ponzi scheme.”

According the class action lawsuit filed at the federal court in West Palm Beach, Florida, BitConnect and its associated marketers promoted an idea which has “illogically promised” monthly returns of 40%, with a 1% compounding daily interest, disregarding market performance. The plaintiffs also claimed that “things at BitConnect weren’t what they seemed to be.”

However, the cease-and-desist letters that BitConnect received from the states of Texas and North Carolina only discontinued its lending platform, shutting down the alleged Ponzi scheme, leaving investors with unusable tokens as the coin crashed 90% of its average value, depreciating further as its own executives hastened its demise.

Claiming to have lost a total of $771,000 to BitConnect, the plaintiffs accused the company, its directors, as well as all its associates of violations of state and federal securities laws and deceptive trade practices, among other claims.

The investors compared BitConnect’s narrative to “Wonderland” a story based on Lewis Carroll’s Alice stories. Convinced that its fictive elements present a danger to the investing public, the plaintiffs said their goal was “to prevent the wrongdoers from simply turning off the lights and dancing away singing: ‘Ciao, baby, gotta run!’”

Signing for the litigation was David Silver, a Florida-based lawyer who specializes in cryptocurrency-related cases. The case dossier does not list any lawyer for BitConnect or any other defendants.

With the two states prohibiting BitConnect’s sale of securities, falsely led investors in the crypto scene quickly reacted with major sell orders, effectively abandoning the coin. As of writing, BitConnect’s market cap has dwindled from $2.6 billion to a mere $57 million, according to

Without a whitepaper describing its business structure in detail, the people involved with BitConnect’s shady business are reportedly on the run. Despite all these, the infringements done by BitConnect and its associates are not enough to make it stop, according to reports. After its announced shutdown, BitConnect is still operation, with an offshoot called BitConnectX holding an ICO reserved for U.S.-based buyers.

Other coins that appeared to improve as a result of the shutdown surfaced almost instantly in the crypto market. Scheming new ways to obscurely advertise a Ponzi scheme, Davorcoin (DAV) and other altcoins continued the same strategy employed by BitConnect: pose as lending platforms in which users may lock their funds for a certain time, and thereafter receive daily returns for doing so. Such opportunist overtones are often seen in recent forking frenzies over crypto, and the continuation of what is exactly the same Ponzi schemes is alarming.

With all the heat brewing in the crypto world, it’s best for new users, particularly, to place their trust on major networks like Bitcoin Cash whose stability and scalability has been proven by its passionate community backed by decentralized development. As the true remaining version of Satoshi Nakamoto’s vision for peer-to-peer digital cash, Bitcoin Cash is poised to take on the future.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Hacked Japanese exchange Coincheck to repay depositors $425 million

Hacked Japanese exchange Coincheck to repay depositors $425 million

Should this proceed smoothly, it would be the most graceful handling of a crypto-heist to date.

Friday last week, Japanese cryptocurrency exchange Coincheck suffered the biggest theft in world history after hackers stole around 523 million NEM tokens (XEM) from its hot wallet, effectively dethroning the infamous Mt Gox hack.

Yesterday, the exchange has issued a statement saying “all affected users will be repaid in JPY via Coincheck Wallet” using their company funds.  The reparations policy indicates that 260,000 users will be repaid based on NEM trading value pulled from cryptocurrency exchange Zaif—at 88.549 JPY per NEM. On top of investigating the heist, the company still has to determine how to roll out the repayment, and for how long.

“We realize that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humblest apologies to all of those involved. In moving towards reopening our services, we are putting all of our efforts towards discovering the cause of the illicit transfer and overhauling and strengthening our security measures while simultaneously continuing in our efforts to register with the Financial Services Agency as a Virtual Currency Exchange Service Provider.”

Meanwhile, the Japanese Federal Services Agency (FSA) has ordered Coincheck to improve its practices based on the Payment Services Act, they posted in another release today. The order, which Coincheck “earnestly accepts,” requires that the company submit a report by February 13 containing details on the investigation of the incident, support of its customers, and stronger mitigation and prevention measures.

In a Tweet, NEM President Lon Wong extended his support to Coincheck, saying they are doing everything they can to help. He clarified, however, that NEM will not be forking.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Kraken re-enables margin trading after rocky system upgrade

Kraken re-enables margin trading after rocky system upgrade

The exchange is also imposing zero fees on trading until January 31.

The last few months of last year have been rocky for the world’s fifth largest cryptocurrency exchange Kraken as massive surge of new users hoping to cash in on the cryptocurrency trade brought their system down to its knees, prompting the exchange to undergo a few rounds of upgrades to help cope with growing demand.

“The recent, unexpected explosion in demand has been overwhelming.  Each of the past few days has produced 50,000 new account registrations and 10,000 new support tickets — an order of magnitude above where we were just last quarter.  Concurrent users, daily trades and volumes are also hitting new all-time highs.  We are struggling to keep up,” they wrote in their blog in December.

Since then, there have been two rounds of upgrades, each stretching to around a week or two to fully implement due to certain issues. Following their January 13 upgrade, the exchange froze new margin positions as a security measure.

The downtime has been frustrating for users, especially since the expected duration had to be extended a few times—which meant that users could not proceed with their trading activities for longer periods of time. Withdrawals have also been problematic. And as we know of the cryptocurrency trade, every hour could possibly translate to thousands of dollars per coin.

Yesterday, Kraken released another post saying margin and free trading will be re-enabled by 10am PT. And seemingly to appease users who have been affected by the downtimes, the exchange is not charging any fees for trading, and reduced fees for margin positions.

According to the post, the system works the same way as before, but only smoother.

“Margin trading works exactly as it did before, only with the system upgrade the experience will now be even smoother. Clients unfamiliar with margin trading who want to get started can begin with our video tutorial and check out our support center for more detailed information on margin trading.”

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.