Newsletter June 20th 2018

Newsletter June 20th 2018

Blockwolf Weekly Newsletter
June 20, 2018 by matthewrobinson
954
In this newsletter BlockWolf reviews the latest stories from EOS, Tron, Circle/Poloniex, Bithumb, and Square. EOS Mainnet Goes Live (June 14th) BlockOne released the software for EOS on June 2nd but it took 12 days for the EOS community to launch its blockchain. The EOS mainnet launch is a milestone for cryptocurrencies because the EOS
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In this newsletter BlockWolf reviews the latest stories from EOS, Tron, Circle/Poloniex, Bithumb, and Square.

EOS Mainnet Goes Live (June 14th)

BlockOne released the software for EOS on June 2nd but it took 12 days for the EOS community to launch its blockchain. The EOS mainnet launch is a milestone for cryptocurrencies because the EOS platform is fast and also free on the user’s side. However, EOS is a controversial blockchain in the cryptocurrency industry because some people think that the platform is too centralized, or can be controlled too easily by a small number of people. EOS’s centralization made headlines when EOS block producers froze 7 EOS accounts on June 19th for violation its constitution.

Takeaway: BlockWolf views EOS as a viable competitor to Ethereum and other platforms for decentralized applications. EOS is not as decentralized as Ethereum and there may be some censorship on the EOS platform but BlockWolf thinks that is okay. In terms of centralization it will likely fall in between a centralized organization like Facebook and something like Ethereum, which could serve as a valuable niche in the cryptocurrency industry.

 

Justin Sun Acquires BitTorrent – Does Not Plan To Integrate TRX (June 16th 2018)

Justin Sun, the founder of TRON, acquired BitTorrent on June 12th but a recent article indicated that BitTorrent does not plan to change its framework to use the TRX coin.

Takeaway: Despite not using a cryptocurrency, BitTorrent is one of the most successful decentralized applications. It would make some sense for BitTorrent to use the TRX coin to incentivize users to seed their files to support their network, but it does not look like that will happen soon. Maybe we will see a change in BitTorrent’s policies as the TRON blockchain becomes more developed, but for now it seems too early for Tron fans to get excited about a potential integration with BitTorrent.

 

Circle Reveals How They Will Add Coins To Their Trading Platform (June 19th)

Circle announced that they will be adding coins to their Circle Invest and Poloniex platforms based on fundamentals, technology, people, business model, and market dynamics. Circle also revealed that they will release a feature called “Buy the Market” that would enable investors to easily buy a diversified portfolio of several cryptocurrencies at once.

Takeaway: The Circle/Poloniex standards seem more arbitrary than Coinbase’s standards but at least it seems like they do have some standars, opposed to other exchanges that will list any cryptocurrency that offers them enough money. BlockWolf expects Circle to support more mature and respectable cryptocurrencies but we understand that cryptocurrency exchanges are businesses who may be inclined to support coins to receive listing fees.

 

Bithumb Hacked For ~$30,000,000 (June 20th)

Bithumb made a change in their wallet system and a $30,000,000 hack against Bithumb occurred in less than 12 minutes of their update. We do not know which cryptocurrencies were stolen but Bithumb announced that they intend to cover lost funds for their users.

Takeaway: Attacks on big exchanges frequently occur and those attacks demonstrate the importance of not storing money on an exchange and they also foreshadow the future use of decentralized exchanges. Note that there are some exchanges that have not been hacked (Coinbaese, Binance, Gemini, UpBit, Huobi) but the safest place to store cryptocurrencies is in a hard wallet, not in an exchange, and the safest way to trade cryptocurrencies is through a decentralized exchange.

 

Square Obtains New York BitLicense (June 18th)

Square is now licensed to support cryptocurrency trading in the state of New York, which means that its users from New York can now buy and sell Bitcoin through its Cash App. Square is the ninth company to receive the New York BitLicense and can now compete with companies like Coinbase, Circle, and Gemini.

Takeaway: Square getting licensed to trade Bitcoin in NY is good for cryptocurrencies because 1) it makes it easier for the millions of Cash App users to acquire Bitcoin and 2) it puts more pressure on companies like Coinbase to improve their product offerings.