News

26 May 2018

Bank of England Governor: Open to the Idea of a Central Bank Digital Currency

Governor of the Bank of England Mark Carney said that he is open to the idea of a central bank digital currency at a conference in Stockholm.

The Governor of the Bank of England Mark Carney said at the Riksbank Anniversary conference that he was open-minded about the prospect of a central bank digital currency (CBDC), Bloomberg reports May 25. Riksbank is the central bank of Sweden.

While he reportedly is not opposed to the idea of implementing a CBDC, Carney stressed that any such adoption of a digital currency would not happen soon. The UK central bank governor stated that cryptocurrencies do not currently constitute money. 

In February of this year, Carney sharply criticized cryptocurrency at an event at London’s Regent’s University, saying that, “It [cryptocurrency] has pretty much failed thus far on... the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange."

Earlier this month, the Bank of England issued a working paper, laying out various scenarios of possible financial risks and instability issues of using a CBDC. The report found that in the scenarios described, there was no reason to believe that adopting a CBDC would negatively impact private credit or total liquidity provision to the economy.

At the 350th anniversary of Riksbank on May 25, Carney stressed that the “past, present, and future” of central banks have and do depend on maintaining public trust in the financial system. He added that, since Brexit, the Bank of England has overhauled their financial system which would make it more resilient to shocks such as those following the brinkmanship of events like Brexit.

Other central banks in Europe have also considered adopting a CBDC. Earlier this month, Norwegian central bank Norges Bank issued a working paper in which they consider developing a CBDC as a supplement to cash to “ensure confidence in money and the monetary system.” The aforementioned Riksbank is also considering an e-krona as the use of banknotes and coins declines in Sweden.

26 May 2018

World’s Largest Diamond Jewelry Retailer Joins De Beers Blockchain Pilot

The world’s leading diamond jewelry retailer has joined the De Beers blockchain initiative aimed at increasing transparency and consumer confidence

De Beers Group has announced that the world’s largest diamond jewelry retailer has joined their diamond supply blockchain platform Tracr, according to a press release published May 24.  Signet Jewelers joined the project, which aims to bring transparency to the industry, in addition to boosting consumer confidence.

Signet will join the Tracr platform in its pilot version, which according to the press release, will enable the platform to complete a “digital link” from diamond production to its retail location. The parties will ensure that the platform corresponds to the needs of manufacturers and retailer, initially focusing on the tracking of diamond jewelry.

Tracr creates a digital certificate for each diamond, which will be registered on the platform and contain key attributes and transactions. This will reportedly let consumers verify that diamonds they purchase are natural and conflict-free. Bruce Cleaver, CEO at De Beers Group, commented on the partnership:

“...Tracr is focused on bringing the benefits of blockchain technology to the full diamond value chain - providing consumers with confidence, the trade with increased efficiency and lower costs, and lenders to the industry with greater visibility.”

Signet Jewelers is headquartered in Ohio and operates in Canadian, American, and British markets, where it holds the number one position among diamond retailers. In 2017 it made over $3.8 bln in diamond jewelry sales. According to their 2018 annual report, Signet Jewelers has a market share of 7 percent of the US jewelry market.

Earlier this month, Cointelegraph reported that De Beers tracked 100 high-value diamonds from the mine to the retailer by means of blockchain technology. This was reportedly the “first time a diamond’s journey has been digitally tracked from mine to retail.” De Beers said that the Tracr platform is expected to launch later this year and will be open to the entire diamond industry.

Yesterday, two leading diamond industry players, KGK Diamonds and Alrosa, agreed to work with blockchain startup D1 Mint Limited to tokenize diamonds. It is believed that the innovation of blockchain can transform the precious gem industry by making natural diamonds into an investment asset class with wider appeal across “various investor groups, driv[ing] higher demand.”

26 May 2018

Shenzhen Gov't Partners With Tencent to Fight Tax Fraud With Blockchain

The Shenzhen government and Tencent have established an “Intelligent Tax” Innovation Laboratory to optimize taxation management and fight tax fraud

The Shenzhen Municipal Office of the State Administration of Taxation has partnered with technology firm Tencent, according to an official announcement May 25. The partnership aims to establish an “Intelligent Tax” Innovation Laboratory focused on tax management modernization and fighting tax fraud with blockchain technology.

On May 24th, the Chinese regulator and Tencent signed an agreement on establishing an “Intelligent Tax” Innovation Laboratory. The newfound organization will reportedly employ cloud computing, artificial intelligence, blockchain, and big data to improve taxation management and find a technological solution to fraudulent fapiao, according to China Money Network.

A fapiao is an official invoice issued by the Chinese Tax Bureau for goods and services purchased in the country, which helps the government to track tax payments. However, there is a large underground market in the country for counterfeit or copied fapiao. Buyers use fraudulent receipts to evade taxes or defraud employers, claiming falsified expenditures for which they are reimbursed.

According to China Money Network, vendors for fake fapiao can be found easily in crowded urban areas, such as subway exits, and outdoor marketplaces.

The digital invoice solution based on the Tencent blockchain will reportedly be the first product of the laboratory, as well as the nation’s first blockchain-based research on the application of invoices. Li Wei, deputy director of the Shenzhen Municipal Bureau of State Taxation, said:

“The digital invoice based on blockchain technology has features such as complete traceability of the whole process and non-disruptive information, which consistent with invoice logic, can effectively avoid false invoices, and improve the invoice supervision process.”

Since 2015, Tencent has used its technology to aid local tax bureaus in China. Shenzhen residents can use the vastly popular app WeChat to declare and pay taxes, as well as to get fapiao.

Earlier this week, China’s Ministry of Industry and Information Technology published a Blockchain Industry White Paper, revealing that the domestic blockchain industry saw “exponential” growth in 2017. The report states that “blockchain technology has risen to the level of a national science and technology strategy,” noting that China’s policy and regulatory framework for blockchain has “gradually improved”.

25 May 2018

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, TRON: Price Analysis, May 25

Latest technical analysis on top 9 cryptocurrencies from an expert trader

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The market data is provided by the HitBTC exchange.

Larger players always have an unfair advantage over the retail traders as they have the money and the resources to manipulate prices. Many crypto investors have been complaining against the manipulation in the markets, which hurts small investors.

If the U.S. Department of Justice (DoJ) can identify and nail the culprits, it will immensely benefit the cryptocurrencies in the long-term. Many other traders also agree that these crackdowns will have positive influence on the markets.

A study by Weiss Ratings showcases that if the US Federal Reserve dilutes the “Volcker Rule” - which restricts the banks from indulging in risky assets to earn profits - Americans are likely to turn to cryptocurrencies.

Considering the flow of positive news in cryptos, we have been bullish for a while but are waiting for the opportune time to buy. Due to the highly volatile nature of digital currencies, we want to identify our risk before buying.

Let’s see if we get some low-risk buy setups today?

BTC/USD

Bitcoin is sliding towards its lower target objective of $7,000. The attempt by the bulls to pull back on May 24 could not find buyers at higher levels, and prices have turned down once again. Currently, the digital currency is trying to hold the trendline support. If successful, a relief rally to $9,000 is probable.

If the trendline breaks, the next major support zone is between $6,075.04-$7,000, which will be strongly defended by the bulls. Due to the strong support just beneath the trendline, we are disregarding the formation of a symmetrical triangle.

BTC

Any sharp decline below $7,000 can offer the traders a good buying opportunity for the long-term. If purchased, the position should be protected with a stop below the February 06 lows of $6,075.04 because if this level breaks, we may see some panic selling.

Traders should avoid buying when the BTC/USD pair is plummeting. The purchase should be made when it shows signs of stabilizing in the 4-hourly chart.

We are suggesting a buy because we believe that the virtual currency will remain range bound between $6,075.04-$12,12172.43.

ETH/USD

Ethereum fell to the 61.8 percent Fibonacci retracement levels of the recent rally on May 24. The bulls attempted a rebound from this level, but it fizzled out at the 50-day SMA. If the bears break below the intraday low of May 24, a decline to $464 will be on the cards.

ETH

If the bulls hold the supports, the ETH/USD pair can rally to the neckline of the head and shoulders pattern, which also coincides with the resistance line of the descending channel.

Aggressive traders can attempt this trade, but the risk-averse traders should wait until a new buy setup forms.

XRP/USD

Ripple is taking support at the bottom of the range at $0.56. On May 24, it attempted to bounce off the supports but met with selling pressure at higher levels.

XRP

Currently, the XRP/USD pair is again retracing the previous day’s pullback. If the $0.56 level breaks down, a fall to $0.45 is likely.

If the support holds, aggressive traders can take a long position above $0.65 with a stop just below the recent lows. This is a very risky trade because the moving averages will offer a stiff resistance on any rally. Hence, the trade should be attempted only with about 30 percent of the usual position size.

A fall to the bottom of the range should be purchased when it shows signs of a rebound, hence, we believe that this trade can be attempted if the buy levels are reached.  

BCH/USD

Bitcoin Cash has completed a breakdown from a head and shoulders pattern that has a lower pattern target of $650. However, for the past two days, the bulls are trying to provide support at the $1,000 levels. If this level holds, the digital currency can pull back to the $1,200 levels, which is a major hurdle as both the moving averages are located close to this level.

BCH

If the BCH/USD pair breaks below $950, it should slide to $750, which is the next minor support. We suggest waiting for the decline to end and a new setup to form before initiating any long positions.

EOS/USD

EOS is trying to rebound from the $10 levels but is facing stiff resistance at the top trendline of the descending channel and the 50-day SMA.

If the bulls succeed in breaking out of these overhead resistances, long positions can be initiated. Traders can wait for the price to scale above the moving averages and the recent swing high of $14.19 on May 20. Positions can be initiated above $14.25 with a suitable stop loss. The target objective of this trade is a rally to $18.67.

EOS

On the other hand, if the bears force a breakdown below $10, the EOS/USD pair can sink to $7.8 and below that to $5.961.

Long positions should not be attempted inside the channel.

LTC/USD

Litecoin has formed a bearish descending triangle pattern, which will complete on a breakdown and close (UTC) below $107. This level has not been breached since December 09 of last year. Therefore, we consider this to be strong support.  

LTC

On May 24, the bulls tried to pull back from the immediate support of $115 but could not break above the overhead resistance of $127.

Below $115 the LTC/USD pair will slip to $107. The first sign of strength will be when prices sustain above $127. Until then, it is best to take no action.

ADA/USD

Cardano is looking weak because the pullback attempt from the $0.19 support level on May 24 did not sustain the higher levels. If this support level breaks, a fall to $0.13 is likely.

ADA

If the price slides to $0.13 and holds, it will confirm the formation of a large range, which can be traded by buying on a rebound from the lows and selling close to the upper end of the range.

A break above the descending channel will be the first sign of a probable change in trend. Currently, the ADA/USD pair is falling. We shall wait for prices to stabilize and turn around before proposing any buys.

XLM/USD

For the past few days, we have been watching a probable head and shoulders top in Stellar. However, after the previous two days of price action and realigning the trendlines, we find a falling wedge pattern developing. This is a bullish setup that will complete on a break out of the upper resistance line. As traders, we should be quick to identify any new setup and change our opinion according to the charts.

XLM

Considering the overall negativity, we suggest waiting for the price to break out and close (UTC) above the 20-day EMA before buying. The minimum price target is $0.44, which is close to the overhead resistance of $0.47766719. Traders should keep a close stop loss, preferably below the recent lows because if the break out fails to find buyers at higher levels, the digital currency can slump to $0.184 levels.

If the XLM/USD pair moves contrary to our expectation and breaks down, instead of breaking out, traders should not initiate long positions. They should remain on the sidelines until a new buy setup forms.

TRX/USD

The bulls are trying to hold the 50-day SMA on TRON while the bears are defending the 20-day EMA. The price has been stuck between these two moving averages for the past two days.

TRX

We believe that the zone between $0.0565 and the 50-day SMA will act as strong support. However, we want to see buying emerge at the critical support levels before recommending a long position because if the support zone breaks, the TRX/USD pair can plunge to $0.04 levels.

On the upside, the small downtrend line may act as a resistance. The digital currency might remain range-bound for a few more days before making a decisive move.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

25 May 2018

Czech Energy Company to Crowdfund Projects, Sell Gas With Crypto

A Czech gas company plans to accept cryptocurrency as payment for its services and contribution to energy projects

A Czech gas and energy company Pražská plynárenská is planning to crowdfund energy projects in and around Prague with cryptocurrency, local news outlet Hospodářské noviny reported May 25.

The gas company is looking to establish a new investment platform in the field of green and gas projects in the country, allowing interested parties to contribute both in Czech koruna and digital currency. In addition to making crowdfunding in crypto available, the company will also accept digital currencies as a form of payment for their services.  

Pavel Janeček, chairman of the board at Pražská plynárenská, said the company’s initiative is a means to attract a younger generation of customers, saying:

“We are trying to go to the young customers across the street, we do not want to be perceived as old dysfunctional moths.”

According to Janeček, the company will have an operational payment gateway as soon as June. Digital currencies which are used for payment will be automatically converted into fiat currency. Janeček said, “...we will not speculate on the development of crypto. But if someone wants to pay [with] an alternative, we want to make it possible."

With over 42,000 consumers, Pražská plynárenská is reportedly the only Czech company in the industry to accept cryptocurrency for the services it provides.

The announcement comes shortly after the company reported record profits. Helped in part by the hard winter, net profit rose by 30 mln koruna to 1.19 bln koruna ($53.9 mln), while sales totalled nearly 12 bln koruna ($544 mln). The company forecasts higher turnovers and more customers this year, but expects overall profitability to be lower.

In August last year, the Czech National Bank claimed that cryptocurrencies like Bitcoin do not pose a threat to the conventional banking system. A statement posted by the bank entitled “Don’t be afraid of Bitcoin,” argues that fiat currencies are still more suitable for commerce.

25 May 2018

Mining Pool of Hyundai-Related Blockchain Platform HDAC Suffers Hack

The mining pool of Hyundai-related IoT blockchain platform HDAC has been hacked, forcing the company to temporarily halt withdrawals.

The mining pool of HDAC, a Korean blockchain-based IoT platform and issuer of the Hyundai-DAC token (DAC), has been hacked. This forced the company to temporarily halt withdrawals, TokenPost reported Thursday, May 24.

HDAC’s founder Chung Dae-sun is the nephew of the CEOs of Hyundai Group and Hyundai Motors, the globally renowned car manufacturer. HDAC’s ICO was launched in 2017 by a conglomerate that includes Dae-sun’s software and construction firm Hyundai BS&C and its fintech and blockchain subsidiary HyundaiPay.

According to TokenPost, HDAC’s mining pool server was breached by attackers who gained access to the pool’s internal system. In the wake of the hack, HyundaiPay told TokenPost that:

“The HyundaiPay team does not intervene in the operations of the [DAC token] mining pool. HyundaiPay’s servers and the HDAC blockchain itself are not impacted by the breach… not all of the [299 mining pool] participants have been affected. While HyundaiPay cannot provide exact details in regards to the reach of the hack, the team estimates that the vast majority of miners have been affected.”

Although HyundaiPay states that it is not involved in the DAC token mining pool, according to TokenPost it is one of the official developers of the HDAC platform, which aims to use its blockchain-based IoT technology to improve security for smart factories and homes, among other IoT-related applications.

The HDAC team suggested in a recent interview that the Hyundai-DAC token “could be used to pay for a car rental, toll roads, car parking fees, and gas.” They explained that the platform’s “family ties” to the internationally renowned Hyundai Motors are helping initial growth, as well as influencing the project.

Porsche came out in February of this year as “the first” car manufacturer to test blockchain systems for use by drivers, as well as for driverless cars. Earlier this month, Cointelegraph reported on the launch of the Mobility Open Blockchain Initiative (MOBI), which involves thirty participants, including BMW, GM, Ford, Renault, Hyperledger, IBM and IOTA.

Ford has also filed a blockchain patent this year aiming to influence driver behavior by using the exchange of crypto tokens to facilitate traffic flow between cars.

25 May 2018

Stormy Daniels Plays Crypto Card to Trump Adult Industry Competition

The adult entertainment site of famous star Stormy Daniels will now accept Vice Industry Tokens as a form of payment for premium content.

StormyDaniels.com will now be accepting the Vice Industry Token (VIT) as payment for viewing the website’s premium adult video content, PR Newswire reports today, May 25.

The Vice Industry Token raised $22 mln in Ethereum (ETH) in 24 hours during its Initial Coin Offering (ICO) in February. The token, which can be earned by watching and interacting with videos on StormyDaniels.com and other sites on the VIT network, can then be used to purchase premium content across the network.

CEO of Vice Industry Token Inc. Stuart Duncan said of the move to accept VIT that "even Stormy Daniels understands the value of cryptocurrency:”

“We are thrilled that she chose our blockchain technology to implement on her site."

Darkreach Communications, which manages StormyDaniels.com, will also be adding a VIT option for all of the over 20 adult content sites in its repertory.

Rob Murray, the president of Darkreach Communications, called the decision to add a crypto option to the company’s adult entertainment sites a “no brainer for me:”

"With VIT, everyone is going to make money – from the users on my sites, to myself and the performers. The way the VIT blockchain works, we all get a piece of the token, and the guaranteed genuine data is the icing in the cake."

Cryptocurrency has shown up in the adult industry sphere before. In mid-March, Playboy announced plans to release a crypto wallet that would allow viewers to use VIT to pay for their premium video content. And in April, privacy-centered altcoin Verge announced that it could be used on adult entertainment video site Pornhub.

25 May 2018

Bitcoin’s Falling Price Nothing More Than Perception, Or Is There Manipulation?

Bitcoin’s price seems low, but many traders are unfazed by its movements, while some see manipulation.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, so you should conduct your own research when making a decision.

The past few months in Bitcoin’s history have been very interesting to watch, especially when honing in on its price fluctuations as a gauge of where it is going next. From about November 2017 to now, Bitcoin has almost come full circle as its price skyrocketed to $8,000 and beyond to $20,000 before falling back to the $8,000 mark.

Taking the time frame from November 2017, when people were cheering its groundbreaking move beyond the $8,000 mark, to today, when people are petrified that it will fall below that price, we can see very different perceptions in trader confidence.

However, traders in the know are less concerned with these movements of price and are not letting the typical Bitcoin fluctuations get to them. Some are explaining the current price as still massively positive, especially if one zooms out on the charts and looks at where Bitcoin is in the bigger picture.

There are others, though, that are pointing towards market manipulation as a potential cause for why Bitcoin’s price keeps shedding its gains between $8,000 and $10,000.

Returning to its range

Part of the reason for the concern over the Bitcoin price is that many investors only got into the market in and around the time the price was hovering around $20,000. The hype and adoption was massive at that stage, with Coinbase boasting about adding 100,000 users in 24 hours at the beginning of November last year.

That spike in price was unprecedented and unusual. As Anthony Pompliano, the managing partner at Full Tilt Capital, explained to Cointelegraph, the Bitcoin price is simply returning to its range.

“The day to day fluctuations aren’t very interesting to me. As your perspective zooms out, you notice that BTC will go through market volatility within a range. The Q4 parabolic run last year broke out of that range, so naturally the market will return to the range.”

“I think we’re back in the natural market range now and we should continue to see growth through 2018. I’m more bullish today than I’ve ever been.”

Pompliano also adds that Bitcoin does react to positive news, and that there are often spikes associated with that, but there has not been that much positive news of late.

“Additionally, I don’t think there is any specific positive news to drive a bull market. We’re seeing a hangover feeling among retail investors because of regulatory concerns, along with the last few months of bear market. Once we get a few positive news items, we should see quick inflection points,” he concluded.

There has been some good news relating to blockchain adoption, and while it is not being separated from Bitcoin, the technology adoption may not play in to the price of Bitcoin directly, as Pompliano adds, but it is still exciting to see.

“I don't think many people correlate ‘Blockchain adoption’ with ‘Bitcoin price’ or other cryptocurrencies. If they do, they shouldn't. It is exciting to see these companies leveraging blockchain technology and I anticipate this trend will accelerate.”

Zooming out

Pompliano mentions in his assessment that those who are concerned about the price of Bitcoin should zoom out a bit. Another figure who reiterates this idea is Mati Greenspan, senior market analyst at eToro:

“Anyone who thinks the crypto-market is falling should probably zoom out a bit. The total market cap of all digital assets is up 330 percent over the last year. Though it's not as high as it was during the peak, this is still unprecedented growth for any asset class, to say the least.”

“The price of Bitcoin on May 24, 2017 was $2,250, and at the time many thought it was a bubble and the price was too high. Today we're seeing lows of $7,300, which isn't as strong as the $20,000 peak but certainly still in a strong upward trend despite the sizable pullback."

Manipulating the market

Recently, the U.S. Justice Department said it had opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies.

This in itself indicates that perhaps where there is smoke there is fire, and it also means that there will be a dramatic ratcheting up of U.S. scrutiny of these markets that critics say are rife with misconduct.

Another trader who for a while now has been calling market manipulation a cause of Bitcoin’s fluctuations has been vindicated by this investigation. Ronnie Moas, a stock picker who has turned his attentions towards cryptocurrencies as well, believes the Bitcoin price is being manipulated.

“I always mention manipulation, and regulation. When we broke below $9,000, $8,000 and $7,000, I said the price was being manipulated. The government is starting to crack down on this right now.”

Moas goes on to explain how easy it is to manipulate the Bitcoin market, as long as a person, or group, has large sums of money:

“If you have $2 bln, you want a diversified portfolio, and for me diversified is a $200,000 position, but there can be a position that is $200 mln, because you want 10 percent of your money in Bitcoin. But you don't want to pay $20,000 for a Bitcoin, so what you do -- and you can call it a Whale, a cartel, a shark, a consortium, a trading group -- you dump $20, $30, $40 million dollars on the market, and create selling pressure. People see those orders on the books, and they jump in front of them, because they are afraid you are going to move and shake the market down, and this feeds off itself.”

“The technical analysts then kick in with their sell signals, and there is panic and capitulation, and when the market capitulates, those people quietly come back in and buy five to ten times what they dumped for pennies on the dollar.”

Don’t panic

People still fear that Bitcoin can drop to zero, but that fear is waning somewhat, especially with the adoption of Blockchain and cryptocurrency technology happening outside the financial and trading realms. Amazon, Microsoft, the entire banking ecosystem, and even some governments have all shown an interest in keeping the technology around for a long time.

The volatility of Bitcoin may not be as dramatic -- both up and down -- and that is something people have to come to grips with, but as the experts above mention, there has still been positive growth over a relatively short period of time.

25 May 2018

Chinese Blockchain Accelerator Offers Startups $ Mlns in Subsidies

The Blockchain Industrial Park in the eastern Chinese city of Hangzhou has announced subsidies for individuals and startups in the blockchain space worth mlns of dollars.

The Blockchain Industrial Park in the eastern Chinese city of Hangzhou has announced subsidies for startups worth millions of dollars, in an announcement Thursday, May 24.

As shown by the new policy, the industrial park is aiming to attract blockchain space talent by offering individuals and startups generous incentives. Highly-qualified blockchain specialists, for example, are being offered resettlement allowances of up to $490,000 and MA and PhD maintenance grants.

Startups will also be able to avail themselves of maintenance grants alongside project-specific funding. These include $230,000 in rent assistance and $1 mln for research and development for early stage blockchain startups, with more advanced startups receiving up to $480,000 for housing and $780,000 for research.

As previously reported by Cointelegraph, a $1.6 bln blockchain innovation fund was announced during the park’s opening in April this year, with 30 percent of the total funds notably coming from local government. A research institute was also established in April to provide academic support for the development of blockchain tech in Hangzhou.

While outlining extensive and available funding, the new subsidy guidelines do not yet indicate specific criteria which must be met for candidates to apply to benefit from the initiative.

Although Chinese government policy remains notoriously tough on cryptocurrency trading, momentum in China’s blockchain space has been gathering pace in recent months. In March, a government memorandum was leaked detailing plans to create an “International Blockchain Investment Development Center,” and in February, news broke of a patent filed by the state-run Bank of China for a solution to scale blockchain technology systems.

Earlier this year, Beijing-based retail giant JD.com announced the first four startups selected for its own Al Catapult Blockchain incubation program. Last month, a $79 mln Blockchain venture capital fund to support local Blockchain startups was announced at Shenzhen city’s Blockchain Expo.

25 May 2018

TRON Founder Reportedly Acquiring BitTorrent Inc.

Justin Sun, the founder of TRON, is reportedly in the process of acquiring BitTorrent Inc. (a.k.a. Rainberry).

BitTorrent Inc., operator of torrent client uTorrent, is reportedly in the process of being acquired by TRON founder Justin Sun, TorrentFreak reports Friday, May 25.

Earlier this year, Justin Sun had sued BitTorrent Inc. - which changed its name to Rainberry last year - for reportedly violating a “No Shop” clause from a letter of intent he had signed in January. Sun’s lawsuit notes that after the letter of intent was signed, BitTorrent’s David Chao told Sun that the company had received three “superior” bids from other companies with which they had communicated.

Sun’s request for a restraining order for BitTorrent to cease communications with other potential buyers was dismissed in court.

TorrentFreak writes that at the same time the exclusivity period of the letter of intent ended at the end of February, Sun had registered a holding company called “Rainberry Acquisition.”

BitTorrent confirmed with TorrentFreak that the acquisition has not been finalized yet, while Justin Sun has not responded to Cointelegraph’s request for comment by press time.

TRON, which will launch the Tron Mainnet in five days, has a market cap of around $4.6 bln and is currently ranked ninth on Coinmarketcap, down a little over 2 percent over a 24 hour period and trading for around $0.07 by press time. TorrentFreak notes that the TRON’s mainnet aim to “decentralize the web,” with torrents mentioned directly in the TRON whitepaper, aligns with that of BitTorrent.

Unrelated to the TRON cryptocurrency, BitTorrent creator Bram Cohen announced last fall that he planned to create his own cryptocurrency, Chia, that would fix the “centralization problems” of Bitcoin (BTC).