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Proof-of-Keys on Bitcoin [BTC] Genesis Block’s 10-year anniversary: Can exchanges win the test of faith?

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Bitcoin [BTC]'s 10-year anniversary of Genesis Block sees mixed reactions to Proof-of-Keys event
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Opinion:

Proof-of-Keys [PoK] is an event that was started by an entrepreneur Trace Mayer to help people in the crypto-space regain monetary sovereignty and spread cryptocurrency literacy to the people that are already a part of the cryptocurrency space or are entering.

The event is scheduled for January 3, 2019, on the 10th anniversary of Bitcoin’s Genesis Block generation. The supporters of the initiative will transfer all or most of their cryptocurrency holdings from exchanges or third parties to their cold wallets, the private keys to which are under users’ control.

Trace Mayer, in a video dated December 9, 2018, spoke about the PoK initiative and elaborated why he wants everyone to actively take part in the event, which would mainly be to educate the users in the crypto-space and help them take control of their funds. Moreover, it would be a stress test for the exchanges to prove if they really hold all of the users’ cryptocurrency funds.

The event gained massive traction as many people in the crypto-community on Twitter added “[Jan/3➞₿ 🔑∎]” to their Twitter handle, showing their support towards the Proof-of-Keys event.

Most of the people who own cryptocurrencies have it stored on exchanges, which means that the users are not in control of their private keys and hence, they are not in control of their cryptocurrencies.

Cryptocurrency exchanges are always susceptible to breaches from hacks and more than a couple hundred million in cryptocurrencies have already been lost to such attacks.

Caitlin Long, a Wall Street veteran and founder of Wyoming Blockchain Coalition, and Nick Szabo, a computer scientist who invented “Bit Gold”, the direct pre-cursor for Bitcoin architecture, also showed their support by changing their Twitter handle.

The major reason that Bitcoin and other cryptocurrencies came to life was to remove third parties that took control of the users’ funds. The aim was to be their own bank. Another important outcome of the event was that it would force exchanges to prove that they actually hold the cryptocurrencies that they claim they have.

However, recent studies have shown that most cryptocurrency exchanges are faking trading volumes of certain assets to attract ICOs to list their tokens on exchanges. Bithumb, a Korean exchange, saw a massive unexplained increase in trading volume as per the study by a firm, CryptoExchangeRanks.

Moreover, according to Blockchain Transparency Institute [BTI], Binance, Bitfinex, and Liquid are the only three exchanges that don’t fake the trading volume of cryptocurrencies.

All of this could spell disaster for users who unknowingly store their cryptocurrencies in exchanges and hence face a risk of losing them. With the cryptocurrency community participating in the PoK event, this could be a step towards the right direction.

Apart from exchanges faking trading volumes, a cryptocurrency exchange HitBTC was accused of deliberately freezing account withdrawals on January 1, two days prior to the event.

In response to this, Trace Mayer tweeted:

John McAfee tweeted saying:

“I warned everyonw more than a dozen times. Don’t sign up. Don’t use it. Withdtaw your funds. I was trashed for calling out HitBT as a corrupt cimpany. Tough shit. You had six months warning from me to withdraw your funds. Do not ask me to help you now.”

The event is said to educate people in the space and also keep the exchanges in check, but many prominent people in the community are still not in favor of the event.

Binance’s CZ and Coinbase’s Brian Armstrong haven’t particularly shown interest in this event. A Twitter user Todor Slavchev[jan/3 🔑], ‏tweeted:

“Why no one of the the crypto exchange CEO’s like @brian_armstrong or @cz_binance don’t support @TraceMayer movement #ProofOfKeys?”

Charlie Lee, aka Satoshi Lite, the creator of Litecoin opined on an interview with CryptoInsider about the event. He said that the initiative was good and that it would educate people and help them be their own bank, and that it would also keep exchanges on their toes to scrutinize their security and protect user funds. Lee added:

“… what I don’t like about this initiative is that it could potentially cause people to make a mistake and lose money right so people a lot of people who keep money on exchanges are those that aren’t very technical and don’t know how to secure their coins… “

He continued that if the users had malware on their system, it could cause them to lose their funds and that a good thing would turn out to be a loss for the users. He also said that a lot of people wouldn’t do it and that it wouldn’t have any “material effect”. According to Lee, it would also further educate people on how to secure their funds.

To this tweet, another user, PBJ #ProofOfKeys🔑, replied:



“‏”do banks support people emptying their bank account”?? by withdrawing your coins from exchanges you’re taking away their liquidity and power to manipulate the market. never store your coins on any exchange be your own bank with a hardware wallet like @LedgerHQ ,@Trezor etc.”

Roy [SwiftoCrypto], commented:

“They want you to keep playing with fantasy figures on their exchange.
Just like banks dont have the money if you want to withdraw a substantial amount, the same goes for a lot of these dodgy exchanges. Whole point of #cryptocurrency is to be in control of your keys”

The event, successful or not, will at least remind people of how Bitcoin was created to take the power away from centralized institutions and authorities and give it back to the people, who are the rightful owners of their own money.



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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

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Ripple

76467|Ripple partner SBI Holdings announces foray into mining space; will compete with giants Nvidia and Bitmain

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Ripple partner SBI Holdings announces foray into mining space; will compete with giants Nvidia and Bitmain
Source: Pixabay

SBI Holdings, Inc. announced the establishment of its chip mining arm, the SBI Mining Chip Co., Ltd or SBIMC. With this development, the Tokyo-based firm will foray into the manufacturing of mining chips, a strategic move to enhance its existing digital asset business.

The official notice issued by the financial giant stated that the SBI Group practiced its digital asset mining business overseas, and now planned to diversify its potential business scope.

SBI group partnered with a US-based semiconductor firm to roll out the new manufacturing unit. The group, which is a strong advocate of a wide range of businesses based on blockchain elucidated,

“The SBI Group will promote efficient, reliable and sustainable mining operations to develop a sound and solid cryptocurrency market.”

SBIMC will be led by Adam Traidman, who was an investor in the company and also served at NASA previously. Among his many accomplishments, Traiman formerly served as the CEO in Chip Estimate and WearSens.



SBIMC will be leading chip manufacturer, Nvidia’s latest competitor. The Taiwan-based firm sustained losses during the crypto-winter, but it recovered after the recent acquisition of Mellanox, a semiconductor player. The Bitcoin mining giant, Nvidia, had predicted a bullish crypto market was confident of clearing its stockpiled mining equipment. The chipmaker was also reported as the worst performer in the S&P 500 list, at the end of 2018.

Another big rival in the mining ecosystem is Bitmain. The Beijing-based mining giant has also been operating poorly after registering a loss amounting to $500 million, owing to the massive crashes in cryptocurrency prices.

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Bitcoin

76216|Anthony Pompliano’s Morgan Creek Digital Capital makes strategic investment propagating mass crypto adoption

Akash Anand

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Bitcoin [BTC] proponent Anthony Pomplaino's Morgan Creek Digital Capital makes new strategic investment to propagate mass crypto adoption
Source:Pixabay

The cryptocurrency market was helped along in its pursuit of mass adoption, with many proponents of the space lending a helping hand. The latest news about the bigger players in the cryptoverse included the tie-up between Morgan Creek Digital Capital and Ikigai Asset Management.

The official release stated,

“Morgan Creek Digital announced today that it will be the lead anchor investor in Ikigai Asset Management’s flagship fund focused on executing systematic and fundamental liquid hedge fund strategies as well as opportunistic venture-stage crypto asset investments. Ikigai is a crypto asset management firm launched in December 2018 by former Point72 Portfolio Manager Travis Kling and partners Timothy Lewis, and Anthony Emtman.”

Morgan Creek Digital partner, Anthony Pompliano, is a voracious supporter of Bitcoin, and has held a bullish viewpoint about the world’s largest cryptocurrency. Post the partnership with Ikigai, Pompliano talked about the company’s  positive devleopments, and claimed that they were well-positioned to capture the outstanding returns brought by cryptocurrencies in the coming future.



Ikigai Chief Investment Officer Travis Kling said,

“DLT and crypto assets are fundamentally changing our world. We are honored to receive this investment from Morgan Creek Digital and look forward to working closely together with Mark, Jason, and Pomp in this exciting arena.”

Pompliano recently sat down with Galaxy Digital’s Mike Novogratz to discuss elements like liquidity, trust and custody that need to be given a boost. Novogratz stated that the cryptocurrency market was presently a booming place of business, especially with the entry of companies like JP Morgan, Telegram and Facebook. He further claimed that it was a big opportunity to invest, with Wall Street sentiments changing. The Galaxy Digital CEO added,

“Wall street earlier thought that you shouldn’t take risks on something small like cryptocurrencies. They are getting close though, not doing anything but are getting really ready. We are anyway working hard on the security token business and I promise you this, the upcoming tokens and ICOs will be a lot bigger but less sexy.”

 

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