The prices of most cryptocurrencies have stabilized as the market recovered from the raging bear’s attack. However, the market movement threw people off from noting several alarming numbers of large Bitcoin [BTC] transactions taking place in the market between prominent exchanges and unknown wallet addresses.
Whale Alert informed the community about these transfers and after looking into these alerts, it was found that approximately 40 transactions had taken place in the past 24-hours where BTC was transferred in large numbers. Kraken, Bittrex, Bitstamp, Poloniex, Bittrex, Huobi, Bitflyer, and Coincheck were noted to be the exchanges which transferred large BTC sums and many transferred them to unknown wallet addresses.
Bittrex, a prominent exchange transferred 999 BTC to an unknown wallet address on June 1 at 04:26:20 UTC. The transaction details noted multiple senders’ addresses to an unknown wallet, 37dbS3wEaEVccRUDmtqQTD9MdhyPFncb4f. The hash of the transaction was 8130e2f0dffd421726695d8f14330abfbd4f8892bcda0f1f8f0eb144efbd3304. The transaction details were:
Similarly, Bittrex received 717 BTC from multiple Unknown wallet addresses in one transaction. The transfer, which was carried out to an address, 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, had an OP_code that read “People! Help”, followed by an offer to buy their BTCs.
Numerous transactions were carried out by Unknown wallet addresses to these exchanges. According to one of the alerts, on May 31 at 18:15:55 UTC, 900 BTC, worth $7,634,312 USD, was carried out by an unknown wallet address to Houbi [Exchange]. The sender’s wallet address was 3BMEXfWfZe6fTJRNn2CjvjRK1NTrUZs9qL and the receiver’s address was identified to be 33LjX6NywVE2Lnbuk5BZjTvTbQt8cNNe1A [Huobi Exchange].
The hash for the transfer was f8ea46d36c45a666917ff21a0ea9fcdf2d06181354071d196ad15c8a644efc83 and the details were:
After investigating further, it was found that most of the funds were getting accumulated in one particular wallet address, 1PXYPhRA4owVkUKWdfxnVJNbbNaoyfwufk.
Such Bitcoin [BTC] transfers are reported on a daily basis, where users and hackers could put their hacked/stolen BTC in a pool and later mix drop it in an exchange. The market awaits a bull run as BTC registered a 3% growth over the past day. At press time, the coin was valued at $8,565.45, with a market cap of $151.91 billion. The 24-hour trading volume of the coin was noted to be $23.95 billion as it noted 6.60% growth in the past week, but the coin slipped by 0.38% within an hour.
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Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder
Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.
The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,
“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”
In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,
“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”
Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”
However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,
“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”
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