Cryptocurrency News

Cryptsy Implodes with Bizarre Blog Statement

High profile online crypto exchange Cryptsy (the subject of much speculation over the last few weeks), finally published a blog ‘addressing’ the issues it has been having. The foremost requirement in the minds of customers was an explanation detailing the reasons withdrawals have not been possible recently.

In a bizarre blog post Cryptsy admitted that the previously published ‘phishing’ attack was not the reason for the current issues and instead claimed that a Hack in 2014 by the Devs behind Lucky7coin had caused the platform to lose thousands of bitcoins. The blog by Paul Vernon also went on (incredibly) to say that it saw no need to inform customers about the hack as it thought it could ‘recover the funds’ through profitable trading conditions!

Vernon is offering a 1000 btc reward for information directly leading to a recovery of the missing funds.

The blog at http://blog.cryptsy.com states that the site is looking for a resolution:

“Here are our options:

1. We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.

– or –

2. Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.

– or –

3. If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.

I’m obviously open to any other ideas people may have on this.

If you have information, you can email reward@cryptsy.com”

Our view:

Another major setback for crypto and a spectacular failure by Cryptsy.

 

Ponzis, Scams, Theft and The Price Of Bitcoin

Christmas 2014 will go down in history as a time when hackers, thieves and ponzis changed everything. As I write this post BTC has sunk to $186 (and was considerably lower earlier in the day), major cloud mining operations have powered down their farms (cex.io and hashnest) and unless the price recovers the whole BTC landscape will irreversibly change.

What has caused the current issues?

Around Christmas Eve several cloud mining operations including PB Mining, Hashie, Hashprofit and LTC Gear suffered hacks or operational issues with a net effect of halting payments to customers. The circumstances and validity of each issue no doubt vary but the consensus seems to be that PB mining could well have been a ponzi although the operators claim the closure was a result of blackmail and personal threats. Hashie claimed a hack although the way they dealt with the aftermath screamed incompetance or ponzi. Hashprofit claimed a db breach although in hindsight this looks like a solid ponzi and finally LTC Gear more believably claimed a hack but the jury is still out as the website has still to recover and they are several weeks behind with payments.

To compound matters, the large exchange Bitstamp had a major breach/hack involving the theft of $5 million worth of Bitcoin. Clearly evoking memories of the Mt. Gox situation, the markets reacted badly to an already depressed value.

So what next?

Some are predicting a crash of epic proportions and the death of bitcoin (many of these doommongers are from traditional financial institutions who are threatened in the extreme by cryptocurrency). Their insecurity is manifesting itself into unprecedented attacks during the ongoing slump. Witness this Guardian article (very naive in it’s assumption that Bitcoin has no use)

Our View

Cryptocurrency is in an embryonic stage similar to the birth of the internet. Such great ideas will always prosper even though the naysayers will do their utmost to put a ‘spanner in the works’. Our philosophy is to sit tight, buy bitcoin and ride out the slump.

 

Show Me The Josh! Garza Lays Out His Blueprint For Paycoin

Fast growing cloud mining site zen miners have been hit by a number of issues over the past 30 days.

All was looking hunky dory in August when Gaw took an $8 million stake in the cloud mining company. It looked like a match made in heaven – the most successful asic mining hardware company jumping into bed with a progressive cloud hashing operation. Coupled with the $1 million purchase of the coveted BTC.com domain it was no wonder that CEO Josh Garza was being touted in some quarters as the next Steve Jobs!.

Josh Garza
Garza has been making all the right noises. Almost evangelical and philanthropic (not unlike Jobs) with his public announcements of new features and a customer first policy.

Customers lapped it up, and why wouldn’t they. The company were innovating cloud mining with ‘Hashlets’ – virtual miners that you could buy through Gaw or Zen and instantly activate into pools that were paying handsome daily amounts of BTC.

Then things started to go ever so slightly wrong. Just after announcing a ton of new features Josh and the team went to a BTC conference in Vegas. At around the same time – the platform (and new features) were hit with a host of new bugs. It was unfortunate for many reasons. Being short staffed back at base, the zen support team were struggling to cope with an increasing number of support tickets and the lack of any ‘announcements’ or updates was causing a PR meltdown.

As soon as the Vegas trip ended, Garza continued with the compulsively premature announcements. Seemingly following the Mark Zuckerberg mantra of ‘move fast, break things’ the CEO made apologies for ongoing bugs at the same time as announcing a raft of new features under his own self titled slogan ‘ignore them and innovate’.

The hashlet marketplace, new prime hashlet features, double dipping all sounded like adventurous but welcome features to the zen cloud. Then the world fell in. Zen suffered a double wammy.

First the market leading mining pool Zenpool was hit by falling daily payouts. This was rationalized by Garza as an issue concerning contract negotiations with a large company leasing hashing power from them. Speculation on some bitcoin forums alleged that Zen/Gaw may have lost a large contract. Miners on the zencloud were less than impressed with a daily reward that almost overnight fell from 0.0006 BTC per MH to 0.0003 BTC per MH.

A few days later the company was hit by an even bigger issue. Resellers of the flagship Prime Hashlets were selling 1MH prime hashlets at around the $50 mark. When buyers activated some of these prime hashlet codes they actually received 25MH instead of 1MH (around $1250 worth). Some users were successful in exploiting the issue by buying more primes and/or splitting the prime into 1MH chunks and quickly selling on the marketplace.

It is unclear how much money Zen lost during the exploit but we can safely assume it was ‘significant’ if the reply and explanation that Garza posted on the hashtalk forum is anything to go by.

Legal action was announced against any miners that had taken part in the exploit unless all monies/hashlets were returned. It is unclear how much of the missing BTC was recovered although Garza claimed that over half the people involved had been traced in his statement.

It was a difficult period for innocent users as the site went offline and withdrawals were frozen for a short time.

In true Maverick spirit, Garza and Zen continued with their plans for Project Prime and Hashbase. A Hashpool was introduced where users could mine Hashpoints instead of Bitcoins. Garza promised that these hashpoints would more than make up for the drop in the Zenpool payouts. A new ‘Hashcoin’ was mooted and speculation began to grow that Gaw’s new coin would be the foundation of Project Prime and Hashbase.

hashcoin.com
The Hashcoin (latterly Paycoin XPY) ICO was finally announced after widespread rumours that companies like Amazon and Walmart were already on board as partners and that the coin would be the biggest crypto coin launch of all time. A coin that would be relatively immune to severe price fluctuations and would have ‘near instant’ transaction confirmations.

So let’s have a look at the details that were included in the launch

Partners

Conspicuous by their absence in the announcement, the rumoured big hitters were not named. it’s possible that negotiations are ongoing and the ‘why hashcoin’ section has a statement reading ‘HashCoin launches with more merchant acceptance than any other cryptocurrency in history.

Transactional Immutability

Yeah, i had to look that up too! This is the explanation behind the near instant confirmation of transactions. The mathematical formulae behind this innovation are beyond the scope of this blog but i’m sure it will be dissected in the coming days. If it does indeed work then it will be a major breakthrough for Gaw’s mission to bring crypto transactions into the realm of widespread adoption. For now if you are brave you could read the white paper here.

Price Fluctuation Protection

This was the claim that interested me the most and I was eager to see the detail. It turned out to be the least interesting section of the launch. The currency will have a Coin Adoption Fund (CAF) with a ‘sole mandate to promote mass adoption for merchants, miners, and the general public’.

In practice this ‘fund’ is likely to be used to control ‘buy’ and ‘sell’ orders to stabilise the price.

Existing miners at Zen and the ICO (initial coin offering)

Here’s the good news for existing Gaw/Zen customers and a delivery on a promise made by Garza a couple of weeks ago. Zen users will get first dibs on the coin along with institutional investors. All the ‘Hashpoints’ mined will be eligible for exchange against paycoins at the rate of 400 points to 1 coin. This second stage of the ICO will enable miners to purchase the coins at a discounted rate (similar to a conventional share option scheme). The public ICO will see the coins priced at around $20 each and (with the help of CAF) the price should be sustainable in the short to medium term.

This represents a very good deal for loyal Gaw/Zen customers and could prove to be a masterstroke by Garza. The plans for the coin are very ambitious and Garza has been forging an almost cult like status amongst zen cloud users. The next few months are going to be incredibly interesting to see if Gaw/Zen can pull off one of the most ambitious projects the crypto currency world has ever seen.

Update: The coin hit the markets mid December. As of writing the coins were trading for around $10 each on Cryptsy ahead of the ‘guaranteed’ $20 per coin buyback floor at Paybase. (Due to launch Monday 22nd December)

The Price Of Bitcoin & Market Manipulation

Bitcoin advocates and the markets in general have been bemused by the recent downward spiral of the Bitcoin price. What is behind the fall?

Bitcoin price graph

Speculation is rife that it is actually Bitcoin investors have been driving down the price with strategic sells.

Coindesk reported that the drop only ‘hard bottomed’ when the price hit $300.

On Sunday October 5th bitcoin’s price plummeted below the 18-month average purchase price of $337.60, causing widespread concern amongst traders. Early Monday when the Asian markets opened a sell order of 26,000 BTC appeared on Bitstamp. The price fell to $300 and then something strange happened. In the traditional stockmarket parlance a ‘Buy, Buy, Buy’ bull market arose with investors eager to snap up the supply.

Many Bitcoin experts such as Adam O’Brian of BTC Solutions have speculated that the 26,000 BTC sell order was the work of an individual investor trying to lower the market price so that they could buy the BTC back for a bargain price. This form of manipulation is not uncommon in FIAT currencies and if true it does give BTC enthusiasts some comfort in that the underlying causes of the drop are not based on wider issues or problems.

PoolAxe could be the answer to your mining software woes!

Configuring your mining array can be fiddly and frustrating. I’ve personally used cgminer, bfg miner and UI’s such as macminer and Asteroid with varying degrees of success.

Fall over pools sometimes don’t kick in or overclocking can be difficult to set up. To solve these endless configuration headaches Cryptaxe have come up with an all-in-one miner monitoring, configuration and control suite.

The exciting part is that the software is available (in beta form) for LINUX, OSX and WINDOWS.

You can also monitor your configuration and miners with the accompanying Android app.
Join in with the beta at www.cryptaxe.com

Is the Hashlet The New Route To Mining ROI?

Gaw Miners recently introduced the scrypt mining hashlet, temporarily causing their shopify ecommerce engine to crash – such was the demand.

So what are hashlets? Billed as the worlds first digital cloud miners, it is reasonably safe to assume these are a matrix of vaultbreaker style mix & match modules. Instead of worrying about expensive hardware and electricity consumption, you simply buy hash power (a virtual machine if you will).

The big difference between the hashlet and the hashing power available on other cloud mining sites, is the claim by Gaw that each hashlet gets more efficient as more of the modules are added to the grid. This, they claim will actually reduce maintenance costs over time!

Judging by the clamour for Hashlets it seems like the public agree. Find out more at Gaw Miners.

Scrypt Mining In The Cloud – Best Bang For Buck at Gaw Miners!

With the launch of myriad asic scrypt miners the days of mining at home seem to be disappearing in favour of cloud mining. Gaw Miners offer a variety of hardware hosted through the zen cloud mining site.

There are many factors to consider and with such a wide array of hardware on offer it can be difficult to make the right choice. Gaw currently offer 1 month of free hosting with their current range but what miner is the most profitable once the daily maintenance charges kick in?

We looked at the full range and took into account the upfront cost and 3 months maintenance charge to find the best deal per Mh for each machine. As hardware is often obsolete within 4-6 months this guide effectively lets you know how much the costs will be for 4 months (including the 1 month free)

Asic Scrypt Cloud Mining Hardware - Best Deals At Gaw
Miner Hash Rate (Mh) Cost $ per Mh Maint/Day Maint/Mh (90 Days) Total $ per Mh Link
War Machine 54 $1049.99 $19.44 $4.41 $7.35 $26.79 More Info
The Boulder 43 $939.95 $21.86 $2.40 $5.02 $26.88 More Info
Silverfish 2 28 $839.95 $30 $1.18 $3.79 $33.79 More Info
The Falcon 27 $734.95 $27.22 $2.20 $7.33 $34.55 More Info
The Ratchet 19 $599.95 $31.58 $1.10 $5.21 $36.79 More Info
G Black 25 $839.95 $33.60 $1.22 $4.39 $37.99 More Info
The Cliff Jumper 9.5 $309.95 $32.63 $0.61 $5.78 $38.51 More Info
Black Widow 13 $419.95 $32.30 $0.98 $6.78 $39.09 More Info
The Fury 1.3 $44.95 $34.58 $0.11 $7.62 $42.19 More Info
Gridseed Blade 5.2 $209.95 $40.38 $0.34 $5.88 $46.26 More Info
The Bee 3.6 $154.95 $43.04 $0.24 $6.00 $49.04 More Info
A2 80 $4199.95 $52.50 $1.54 $1.73 $54.23 More Info
Silverfish 5 70 $3834.95 $54.79 $2.69 $3.46 $58.24 More Info
A2 Mini 28 $2519.95 $90 $0.49 $1.58 $91.57 More Info
Gridseed 5 Chip 0.3 $29.95 $99.83 $0.11 $33 $132.83 More Info

Key:
Column 4 $/Mh = Cost per Mh based on purchase cost only
Column 5 Maint/Day = Maintenance Charge for full Machine per day
Column 6 Maint/Mh (90 Days) = Maintenance charge per Mh for 90 days (120 days if you include first month free)
Column 7 Total $ per Mh = The total cost per Mh over 90 days including purchase cost and maintenance (120 days if you include the first month free)

Conclusion:

Best High End Stealth Machine:

The War Machine 54Mh $1049.95 – Cost Per Mh over 4 Months = $26.79

Gaw Miners War machine

Best Mid Range Buy:

Silverfish 2 28Mh $839.95 – Cost Per Mh over 4 Months = $33.79

Gaw Miners Silverfish

Best Budget Buy

The Fury 1.3Mh $44.95 – Cost Per Mh over 4 Months = $42.19

Gaw Miners Fury

We have a limited number of promotional codes for Gaw Miners.

WELCOMETOGAW – $10 off orders over $150

GAW25 – $25 off orders over $200

GAW3FOR3000 – 3% off orders over $3000

GAW4FOR4000 – 4% off orders over $4000

GAW5FOR5000 – 5% off orders over $5000

*Note – Prices correct as of 5th August 2014 and may be subject to change. Errors and omissions excepted.
 
By
 

Get 50,000 Satoshi Free Now

How to Get 50,000 Satoshi Free Now

Step One

Latium is the first and only truly FREE cryptocurrency.
Sign up today and get 5 FREE coins…and they say nothing in life is free, well they’re wrong! LATIUM is totally free!

latium-sign-up-button-png-i2

Step Two

Download the Windows/Mac/Linux client that you see after registering on the latium site

latium wallet client

Now launch the wallet and let it sync. Then click ‘receive coins’ at the top.
Copy your latium address as shown below then proceed to step 3.

latium-client

Step 3

You should be logged into your Latium account on the website. In the left had menu click ‘Reports’ then “Payouts To Me’. Add your copied wallet address and then click request payment.

LatiumScreenShot2

That’s it! You can now trade your Latium for Bitcoin, Leave it in your wallet to accrue interest or you can get more latium by using your referral link and spreading the word. See below:

1. Open an account at Coinswap to trade in your Latium for Bitcoin.

2. Get referrals buy advertising on BTC Clicks or CoinAds.

3. Leave Latium in your wallet to earn interest (see screenshot below)

Latium Earnings

* Please note: only valid referrals will credit you with Latium and are subject to approval before being credited to your account. Price of Latium will vary and go up or down. 50,000 satoshi for 5 Latium was the price quoted on CoinSwap on 1/8/2014.

Beware Bitcoin Scams!

How to avoid bitcoin scams

The Bitcoin community is a fairly solid one but like anything gathering traction, rogues will infiltrate at will. The anonymity of Bitcoin with the benefit of decentralization can also be it’s weakness.

Scam sites can remain undetected and once your cryptocurrency leaves your wallet there isn’t a great deal you can do to get it back. One site looking to change all that is Badbitcoin.org which lists dubious websites.

Kosher sites can ask to be delisted from the site if a mistake has been made, but the site is worth a scan before you dive in to any double your money schemes. One such site currently advertising heavily is doubleurbtc.com. It promises quick returns on your investment with daily payouts. The only problem is that once you’ve received the first few payments, your account suddenly disappears and you’ve been scammed!

Bitcoin Magazine

Bitcoin Magazine (Photo credit: zcopley)

 

What’s the fuss about Latium?

Latium Coin Crypto Logo

Anybody who reads this blog will know that I’m a big fan of cryptocurrencies that have something different to offer.

Latium is one such currency. Like another favourite of mine NXT, Latium can’t be mined and relies on 2 channels for value and growth. The first channel is the affiliate or referral network. Nothing much new there unless you dig a bit deeper.

[Edit July 5th: The Latium system had a big problem with bogus sign-ups and many genuine referral campaigns had their earnings approved before the loophole was detected. In many cases these ‘approved’ earnings were removed from existing users wallets, leaving a lot of bad feeling on the forums. If you do use a referral campaign to acquire affiliates then please bear this in mind. The admins claim the system has been improved]

Firstly you get 5 coins just for creating an account and downloading the wallet and then you accrue coins by referring others up to a maximum of 99 levels. Don’t forget the first 5 coins are free so this can’t be considered a pyramid scheme.

Secondly and perhaps crucially, if you choose to store the coins in your downloaded wallet rather than trade them they will accrue interest for you. This is clever as it creates a value/need for the coin.

This minting is explained on the website

Minting is performed automatically by the Latium wallet only if the wallet is online and connected. There is no additional work or requirements to mint your Latium. Once your Latium has been confirmed, you will start generating “coin age.” Once your coin age exceeds six hours, your coins will be available to mint new blocks. When you mint a block, the coins used will be placed “at stake” and will remain at stake until 48 blocks have minted. Coins that are at stake are unavailable for transfer. After the 48 blocks have been minted, your initial coins along with the interest gained by minting will be available in your balance.”

At the moment on coin-swap the value of 1 Latium is 0.00009000 BTC – not a bad start – although with a new pre-mined coin the value could fluctuate wildly and any artificial buy orders could soon have an effect.

With any take up or online transaction traction we could see Latium becoming another Doge but with less draw on energy bills because of the absence of any mining need. Definitely one to watch.

Read more on Latium and sign up here.