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Coinbase: The Best Startup of 2018

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Headquartered in San Francisco, Coinbase emerged as the leading digital currency wallet service that allows traders to buy and sell cryptocurrencies.

Headquartered in San Francisco, California, Coinbase emerged as the leading digital currency wallet service that allows traders to buy and sell cryptocurrency like bitcoin.

The interest, as well as the amount of investment that was put into cryptocurrencies, hyped up in the past year and there emerged the need of a secure facility of exchange to allow the buying, selling and execute other transactions related to crypto- at such a time Coinbase emerged as one of the safest portals to deal in cryptocurrencies.

 

Things You Should Know

Coinbase was launched in Fransico, back in 2012 and is currently functional in as many as 32 countries and serves over 12 million customers with over 40 billion dollars in digital currencies. When 2013 was reached, Coinbase came out to be the most funded Bitcoin startup and was also the largest portal for the exchange of cryptocurrency in the world. It is different than other exchanges in the market that require users to trade in a market- Coinbase, on the other hand, allows them to exchange their cryptocurrency at a set price that is based off the market value, which makes the whole transaction much faster than any other exchange. It also just happens to be one of the few portals that accept credit cards (in addition to bank transfers).

Coinbase went on to gather some real high-browed backers as investors, including the Bank of Tokyo and BBVA, which is proof of its legitimacy.

Some people wonder whether the facility of Coinbase is safe or not- well, among its competitors, Coinbase is probably the safest that there is. It is important to note here that Coinbase is based In the USA and it complies with all of US’s State and federal laws- thus making it much more secure than other exchanges that have a loose law system.

 

Safety Measures

As far as storage of funds is concerned, the methodology of Coinbase is highly transparent- it categorizes and separates customer finds from company’s  operational funds and it has mentioned on its website that any funds that they hold on behalf of their customers are kept safe in custodial bank accounts and in case a financial crisis does occur, neither Coinbase nor its creditors would have any rights or claims to the funds of their customers. Coinbase also guarantees that 98% of customers’ cryptocurrency finds are stored offline by the means of hardware wallets and paper wallets that are further secured in vaults and safety deposit boxes around the world. The security is further boosted with Coinbase claiming that the left percentage of the cryptocurrency which is stored online is insured and in the event of any hacking that is near to impossible, customers will have a claim to receive any funds that they may have lost via their insurance policy.

 

Recognition Received

Coinbase found worldwide substantiation for their efforts and for some of our amazing colleagues. Ultimately, these awards highlight the efforts of every single employee, and  Coinbase was highly grateful to all its employees and staff members for making it such an amazing place to work. Top highlights include:

  • LinkedIn went on to rank Coinbase as the #3 most desirous and profitable startups in the US.
  • Fortune’s prestigious publication- The Ledger featured four members of Coinbase in its list- 40 under 40
  • Major personalities working with Coinbase such as Tariq Meyers and Emilie Choi have been recognized by many international magazines and newspapers, like The Root.

 

Customer Service

Coinbase is not going to leave you stranded alone in this cyber world, for it offers customer support via email and you can easily find a knowledge base on its website along with FAQs that are available for customers. Although the time that you will be spent in waiting for customer support may vary, Coinbase makes sure that all its users are left with their questions answered no matter how busy or caught up they are.

And so we can say that something so novel to have reached the heights of success so soon is truly a tremendous achievement for Coinbase; it is indeed the best startup that 2018 bore!

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German’s Giant Derivatives Exchange to launch BTC, ETH and XRP futures.

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Eurex, a Germany based derivatives exchange is all set to launch cryptocurrency futures contracts tied to Bitcoin, Ethereum and XRP.

Eurex, a Germany based derivatives exchange is all set to launch cryptocurrency futures contracts tied to Bitcoin, Ethereum and XRP.

Eurex’s parent organization, Deutsche Börse, has allegedly been wanting to present crypto futures since December of 2017 when Bitcoin price was close to its record-breaking high of $20,000.

Addressing German news outlet Wirtschaftswoche, a Deutsche Börse representative stated,

 

“We are thinking about futures, with which private investors and institutional investors can protect existing investments in Bitcoin or set for falling prices of the cyber currency.”

 

Eurex crypto futures is one piece of Deutsche Börse’s endeavors to extend its blockchain-based applications. In Spring of 2018, the exchange declared cooperation with HQLAx, a fintech organization that has some expertise in providing liquidity solution for institutional customers. The organizations are building up a securities loan offering dependent on R3’s business blockchain product, Corda.

Deutsche Börse says the activity is gaining noteworthy ground with six banks affirming they’ll join the stage at dispatch date, which is planned for the starting months of the current year itself.

Eurex was established in 1998. It is the seventh-biggest derivatives exchange around the world, as per information by Statista, and the fifth-biggest exchange by a number of single stock futures contracts exchanged in 2017, as per information by the World Federation of Exchanges.

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The Mt.Gox Story: Where has it reached? What’s the future?

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A survey conducted on the users of Mt.gox revealed that nearly 70% of users have not received their funds yet even after complaining and placing the request

Mt.Gox was a Japanese based bitcoin exchange program, which stands for “Magic: The Gathering Online Exchange”. It handled over the 70% bitcoin transactions of the world. It was the largest ever bitcoin exchange. It held in 2014. In the February end, it was bankrupt. It was a massive hack happened ever in the history of transactions. It was the monetary massacre which has ever happened in history. On average, it lost about 740,000 bitcoins which is 6% of the total existence at that time. The monetary tangible value of that lost 740000 bitcoin was 460 million euro and above $3 billion of the amount had no records in the bank transactions. After meticulous sleuth somewhere near 200000 bitcoins got recovered but till date, there is no record of 650000 bitcoins, it has not been recovered yet.

 

Mt.Gox was hacked in the year 2011 June. The source is reported to be the computer of an auditor of the company. The hacker manipulated the monetary value of the bitcoin to one cent artificially and transferred 2000 bitcoin on an aggregate value and sold it. It was not just for once rather it was the spatial skulduggery of the hacker. Not just this, later on, the hacker purchased around 650 bitcoins from the exchange by artificially manipulating the price to be lower than that of the actual value and till date, the amount has not been returned.  

In spite of such a massacre, Mt.Gox re-established itself and turned up to become the largest bitcoin exchange in the world. It came to be the largest bitcoin exchange in the world but apparently, the event was facing the disturbing struggle. The security structure became poor on when it had to be strongest and it was disorganized in many of its sectors.

 

How did U.S.A react?

The US Department of Homeland Security sleuthed the matter meticulously and ramified that one of the subsidiaries operating in US of Mt.Gox was illegal and was operating on the not registered monetary transmitter. After the US discovered the skullduggery it seized $5 million from the company’s bank account. And Mt.Gox announced the temporary suspension of transactions in US dollars. This mischief leads to certain delays in the transactions and lost its position of the largest bitcoin exchange in the world. After the suspension of dealings in US dollars, Mt.Gox incurred significant losses because of credit deposits.

In February Mt.gox had to halt all the bitcoin withdrawals in order to receive the clear picture and identify the massive loopholes in the operations to draw the structured report and get a technical display of issues. The company after scrutiny stated that massacre was the result of transactional malleability. The company after such massacre was trying to grow gradually and one such concern reported again was of a security breach. After the accumulation of data the financial status of the investors still displayed the disparity. Coindesk indicated that 3000 customers reported that 68% were still waiting for the funds from Mt.Gox.

 

Where has Mt.Gox reached?

After the survey conducted by CoinDesk on the users of Mt.gox revealed that nearly 70% of holders have not received their funds yet even after complaining and placing the request. The wait has not finished yet still people are waiting to receive returns of their amounts invested. After the mischief, that survey reported that Mt.Gox has lost many of its high-level executives vanished. This issue was faced not only by customers and but the banking associated faced the same concern too. After so long hold on Mt.Gox now it has become somewhat stable. But after such massive felonious transactions reported the Mt.Gox lost its credibility in the market of bitcoin exchange. There had been multiple prices reported in the nominal value of bitcoin. Too many fluctuations in the value of bitcoin is a breach and are considered a flagrant violation of the law of uniform price. In economics, the persistence difference in price is atrocious for the flow of bitcoin in the market. But according to the CoinDesk survey, the spatial failure of withdrawal of funds has been reported yet.  

Later on, it was transpired that Mt.Gox along with its founder Mark Kerpeles are ensnared in the US lead operation. The escalated volume of bids for bitcoin on Mt.Gox apparently the bitcoin price began to rise gradually. The way transactions are propagated in the network the company has lost its customers. And the scalability issue has exacerbated.

After the scrutiny, Mt.Gox’s books seem to have plenty of fiat currencies in the bank. But after so much of instability Mt Gox managed to stabilize itself and called the new customers on the platform by reintroducing its market credibility. It will definitely take a lot of time for the brand to be recovered completely. The impact of this skullduggery was gigantic on the operations of bitcoin exchange because of which Mt.Gox lost its title of largest Bitcoin exchange in this world.

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Gerald Cotten faked his death? QuadrigaCX story fully uncovered.

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$190 million in cryptocurrencies may be lost forever. The owner of the QuadrigaCX died while he was in India due to complications from Crohn's disease.

$190 million in cryptocurrencies may be lost forever. The owner of the QuadrigaCX died while he was in India due to complications from Crohn’s disease and he was the only person with access to the cold wallets. What’s highly suspicious and insane here is that they did not have a multi-signature wallet set up for $190 million worth of customer’s cryptocurrency. 115,000 users are left without their money and that is tragic. Some of these users had very large balances on the exchange with one user apparently having up to $70 million worth of cryptocurrency on the exchange. The exchange has now filed for bankruptcy.

The exchange has been granted an order for creditor protection in Nova Scotia. This is basically a 30-day stay of proceedings in a way to stop any lawsuits from proceedings against the company at this point. It’s a tragic situation when someone dies, a company goes under, thousands of people lose their cryptocurrencies and thousands of bitcoin disappear forever. But then it starts to get weird because the QuadrigaCX case has got a lot of strange things going on in the background. These may be just rumors or things that people are talking about right now when it comes down to what’s going on with this exchange. The reality at the end depending upon what the investigation turns up may prove to be different.

 

The Series of Coincidences around QuadrigaCX and the death of Gerald Cotten:

Gerald Cotten, who was the only person who knew the passwords for the cold wallets. Before his sudden death, there were also quite a few reports of long delays in getting withdrawals. That itself is a bit of a red flag. There are of course acquisitions that basically you could only withdraw your money when someone else deposited their’s which means that there were serious solvency issues at the exchange if of course, that was true. The accounting of the exchange has been really bad which may be just bad business practices but the company was also hit with cease trading order for failing to file financial statements. Cotten’s wife has also said that she has been unable to find any corporate records.

It is unclear whether or not QuadrigaCX had all of the cryptocurrencies that they say they do which was millions in cryptocurrency at the time of closure and at the time of the founder’s death. QuadrigaCX never disclosed their cold storage wallet addresses. Taylor Monahan, the CEO of MyCrypto has been investigating the Ethereum’s side of this situation. She said that the company didn’t possess a significant amount of its Ethereum to make it liquid and the cold storage Ethereum addresses may not have existed at all. Then it comes to litecoin. It is unconfirmed whether these are the addresses of QuadrigaCX, research has indicated that QuadrigaCX’s litecoin cold storage wallets are moving litecoin after the claim that the keys were lost. However, it is not confirmed whether that is company’s litecoin addresses or not because they are not disclosing that information even now.

The Co-founder Michael Patryn might be a famous conman going by the name of Omar Dhanani who is a convicted scammer. Dhanani was a member of the shadow crew and pleaded guilty to numerous counts of identity fraud back in 2005. He also used the name Omar Patryn in a forfeiture case. These company corporates are the guys who have the KYC information of more than 100,000 users. So this proven identity scammer now have access to all this KYC information which would make it so easy for him to open up new accounts in other exchanges, cashing out using fake id’s. Michael Patryn apparently left QuadrigaCX back in 2016 but considering how fishy the rest of the story is, it would not be surprising if he maintained an influence or a relationship with
Gerald Cotten.

Some have speculated that Gerald Cotten faked his own death and basically got a knock-off death certificate in India or perhaps he was killed by his business partners but even the death itself is incredibly suspicious. Dying from Crohn’s disease when only 1.6% of sufferers from this disease die of it and to happen to die from Crohn’s disease in such a young age is incredibly rare. Gerald Cotten was cremated and his ashes were dumped into a river in India and to make it even better he filed a will 12 days before his death. In that will Gerald Cotten accounted for things like his dogs to be taken care of, his house etc. but he casually forgot to include any information about how to release the $190 million in user funds on his exchange which he had the sole access to. Also, QuadrigaCX did not announce his death or the missing keys for a month. With so many coincidences it’s crazy.

QuadrigaCX worked with CryptoCapital who also work with companies like EXMO and CEX which have been having withdrawal issues recently as well, Coinapult which basically stopped business overall on 10th December last year and Bitfinex. All of these have reported withdrawal issues in the recent past. In fact, Cryptocapital on the day of the announcement about QuadrigaCX delisted Bitfinex from their website. This adds to the fishiness of this whole story.

A court-ordered lawyer will be getting a hold of the encrypted laptop from QuadrigaCX and that laptop might actually provide access to $190 million worth of customer funds. An independent third party will be the one taking over the custody of that laptop during the bankruptcy procedures.

Maybe the official story is exactly what happened. Maybe the founder really died and no one has the access to the user’s funds and it’s just a case of coincidences about Dhanani, cremation of the body etc. but if the worst rumors prove to be true and the scammers get caught maybe some people will get a bit of their money back assuming that the lawyers are not able to get it out of the laptop. There is still some hope out there for people.

 

What are your thoughts on Quadrigacx and the death of Gerald Cotten? Tell us in the comments section below.

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