coinbase

Bitcoin exchange and brokerage service Coinbase is back online following multiple outages that forced the company to suspend trading on Friday as the cryptocurrency markets endured their worst correction in at least a month.

Seemingly out of nowhere, the entire cryptocurrency market entered a severe corrective phase on Thursday, sending nearly every top 100 coin and token into a tailspin and spurring investors with weak hands to scramble toward the exits.

bitcoin price
Source: BitcoinWisdom/Bitfinex

Unfortunately, many traders were greeted with a message that has become all too familiar when they logged into their Coinbase accounts on Friday:

“Due to today’s high traffic, buys and sells may be intermittently offline. We’re working on restoring full availability as soon as possible,” a statement on the Coinbase website read this morning.

According to the company’s status page, the exchange suffered from two trading suspensions during the height of the frenzy, each lasting approximately one hour.

coinbase
Source: Coinbase

This was just the latest public relations headache for Coinbase, which is far and away the most popular cryptocurrency brokerage service in the US but has struggled to scale its operations to match rising consumer demand.

The company has suffered persistent outages throughout the year, including one as recently as yesterday, but the company has also incurred the ire of some bitcoin diehards for its support of the contentious SegWit2x scaling proposal, as well as its seeming reluctance to implement Segregated Witness (SegWit) now that it has been activated on the Bitcoin network.

Just this week, Coinbase garnered significant criticism for its messy rollout of support for bitcoin cash that saw the company suspend trading just minutes after its launch and many community members accuse employees of engaging in insider trading.

As of 4 p.m. ET, Coinbase’s trading platform had been operational for three consecutive hours, likely because traffic congestion tapered as the bitcoin price leveled out.

After dipping as low as $10,700 on Bitfinex, the bitcoin price appeared to recover to a point of relative stability, and at press time it was trading at a global average of $13,744, according to the BlockExplorer Bitcoin Price Index.

Featured Image from Pexels

bitcoin price

Billionaire trader Mike Novogratz said that he had shelved plans to launch a $500 million crypto hedge fund after the cryptocurrency markets entered a $180 billion tailspin on Friday.

Novogratz Shelves $500 Million Crypto Hedge Fund as Bitcoin Price Retraces

Novogratz, a former Fortress principal, had stated on Dec. 12 that he intended to launch Galaxy Investment Partners “by the end of the week,” rapidly moving up a timetable that had originally planned the fund’s launch for the first quarter of next year. With a $500 million target, the crypto hedge fund was expected to be the largest of its kind.

However, on Friday the long-time bitcoin bull revealed that he had not only not launched Galaxy Investment Partners last week as planned but had also shelved the crypto hedge fund indefinitely, according to a Bloomberg report.

“We didn’t like market conditions and we wanted to re-evaluate what we’re doing,” Novogratz said in a phone interview. “I look pretty smart pressing the pause button right now.”

The revelation of the abrupt reversal comes as the cryptocurrency markets have entered a severe correction following a parabolic run-up. After reaching an all-time high of $19,891 on Dec. 17, the bitcoin price plunged to a nearly three-week low of $10,700 on Friday morning, according to data from Bitfinex.

‘When Insiders Sell It Always Is Important’

Novogratz — who recently predicted that the bitcoin price would hit $40,000 in 2018 — said that he now believes the bitcoin price could retrace as far as $8,000 before resuming its bullish rally.

“Looks to me like a short-term top is in,” he wrote on Twitter. “My hunch is we consolidate between 10-16k for a while. Extreme would be 8k. Bull market isn’t over. Just pausing.”

Elsewhere on Twitter, he appeared to lay part of the blame for the correction on Litecoin creator Charlie Lee, who revealed earlier this week that — to avoid a “conflict of interest” — he had sold his entire LTC balance and donated the proceeds to undisclosed organizations.

“When insiders sell it always is important,” Novogratz said.

Featured Image from Bloomberg/YouTube

edward snowden on zcash

Edward Snowden has said on Twitter that Zcash is risky, but certainly has potential. Specifically, he stated: “It’s a moonshot”, ”certain to change everything if it succeeds.” Edward Snowden’s comments on the technology behind Zcash may be part of the reason why Zcash’s price has risen so much in recent days. As of 12/21/17, ZEC is currently trading at ~$679 according to the Block Explorer Market data. 

This is just the latest one of several tweets Snowden has made on the subject of Zcash, referring to its privacy technology, known as Shielded Addresses. In the past, Snowden has even gone so far as to compare Bitcoin and Zcash, stating: “if it’s not private, it’s not safe.”

Snowden’s comments on Zcash prompt privacy debate

As a result of this public “support” from Snowden, Zcash’s opt-in privacy has come under fire by Monero users, who state that Monero is the more private and secure of the two currencies. Whether that’s true remains to be seen. Private transactions are certain to change everything, if successful. Some users criticised the fact that Zcash is maintained by a for-profit company, and whether or not that is the best idea for a privacy-oriented currency. Snowden responded raising concerns about the “founder’s fee” that the Zcash company takes, but otherwise stating that because the cryptocurrency is open source, anyone could fork and remove any issues that the company may add. Multiple other responses pointed out that while Zcash transactions can be private, they are not implicitly, and according to one response as few as 0.3% of all Zcash transactions were of the private type. 

How Anonymous Transactions work in Zcash

Zcash gives its users opt-in privacy on the blockchain through its Shielded Address. A transaction between two shielded addresses is completely private, meaning that on the blockchain, all that is visible is that a transaction happened, the source, destination, and amount transferred are all hidden. When sending from a Shielded address to a transparent address, the target and the amount the target received are visible on the blockchain, while the sender and the amount sent are not, the inverse is true for sending from a transparent address to a shielded address. And transactions between two transparent addresses are similar to those on the bitcoin blockchain, both the source and destination are visible, as is the amount transferred. It’s worth noting though, that at the time of writing, only a very small percentage of Zcash is stored in shielded addresses.

coinbase

Bitcoin exchanges Coinbase and GDAX added full support for bitcoin cash on Tuesday evening, and the rollout did not go smoothly.

Bitcoin Cash Price Explodes After Coinbase Listing

Earlier today, Coinbase announced in a blog post that it had added full support for bitcoin cash, the third-largest cryptocurrency by market cap, enabling users to buy, sell, send, and receive the coin on both Coinbase and GDAX, its professional trading platform. Customers who had coins stored on the exchanges at the time of the fork also received access to their airdropped funds.

The bitcoin cash price surged to record levels in response to the announcement, reflecting the fact that Coinbase’s brokerage service is one of the primary ways in which new users in many countries — the U.S. in particular — purchase cryptocurrency. Some analysts attribute the recent litecoin and ethereum rallies, for instance, to their presence on Coinbase amid an explosion of new user registrations.

bitcoin cash price
Source; CoinMarketCap

Within hours, the global average bitcoin cash price had jumped from $2,300 to $3,000, and it swelled as high as $3,813 before settling down to a present value of $3,224, according to the BlockExplorer price index. This movement represented a single-day increase of 47 percent and lifted bitcoin cash’s market cap to nearly $55 billion.

A Messy Rollout

The news was a huge boon for bitcoin cash proponents, as it further cemented the coin as a top-tier cryptocurrency and made it more accessible to new investors, many of whom likely remain unfamiliar with it.

However, for the company, the rollout could not have gone much worse.

Coinbase’s pricing data comes from GDAX, where the bitcoin cash price quickly — and inexplicably — shot up to $8,500 before the exchange shut down BCH trading and cleared the order books just minutes after their launch.

bitcoin cash price
Source: Coinbase

At press time, GDAX’s BCH markets remained offline, with the last posted trade priced at $9,500. Coinbase, however,  had adjusted the bitcoin cash price down to $3,193, a level that corresponded to the global average.

The rollout left users confused — and enraged — and scores of frustrated users took to social media channels to vow that they would cease to use either Coinbase or GDAX.

It is likely that cooler heads will prevail once GDAX corrects whatever issue caused the price to leap to $9,500 and launches stable BCH markets. Nevertheless, the incident marks yet another public relations headache for Coinbase following a year of unprecedented expansion that has been accompanied by significant growing pains.

Featured Image from Pexels

The Global Digital Asset Exchange (GDAX) is a trading platform launched by Coinbase.com in May of 2016. GDAX trades Bitcoin (BTC), Ether (ETH), and Litecoin (LTC), and accepts USD, EUR, and GBP Deposits. GDAX owned by the Coinbase Inc, which is based in San Francisco, California.

GDAX is suited to the needs of traders with mid-level experience in crypto trading, as well as institutional and professional investors. GDAX is fairly easy to understand once you get the hang of it, but may be slightly confusing for a first time trader. Customer USD funds in GDAX are FDIC insured, meaning your balance up to $250,000 is protected.

GDAX currently ranks #3 on the BlockExplorer Top 25 Cryptocurrency Exchanges List.

GDAX Bitcoin Exchange Summary:

gdax cryptoName: GDAX
URL: https://www.gdax.com/
Total trading pairs: 9
Founded: 2016
Deposit fees: no
Withdrawal fees: no
Trading fees: 0.00% – 0.25%
Margin trading: yes
USA accepted: yes
Verification levels and withdrawal limits:

Verification Level

Limits

Verified Algorithmic

GDAX Exchange Verification Process:

Users who are already registered on Coinbase don’t have to create an account from scratch and can log in with their Coinbase credentials.

GDAX has two levels of verification. Note: They do not have an unverified tier available for use. Verification is required, and users are not allowed to deposit or trade until the verification is completed.

The verification process is straightforward and is different depending on the country. This is due to the differing regulatory atmospheres in different countries. Some are friendly and some are not. In fact, in some countries, like the United States (US), there are differing regulations depending on state.

US users will need to provide a copy of their driver’s license, residential address, and SSN. Please note that GDAX isn’t currently allowing every American state so they won’t accept US passports as an identification document, they need to see and verify what state you are living in to be compliant. As noted previously, some American states are not allowed. US states not yet supported by GDAX include Wyoming, Hawaii, and Minnesota.

UK users will need a photo of an ID card, driver’s license or Passport as well answers to several identity questions

Users from other countries such as Singapore, Australia, Canada and European countries are required to provide a photo of an ID card, driver’s license or Passport and another photo of a different ID document.

Once you are verified: Happy trading!