Global Payments is working with BitPay to offer Bitcoin option

Weekly Altcoin News Update : Ethereum Presale Approaches 50 Million, a Proof of Stake Mobile Wallet,and More

 This week’s altcoin update covers Ethereum, Shadowcoin, and CoinedUp’s closure.

Welcome to the CCN weekly altcoin news update, where we profile altcoin news topics that have gone under-the-radar. This week’s article discusses Ethereum, whose Ether presale is set to pass 50 million sold, Shadowcoin, who are releasing the first mobile wallet with full staking functionality, and CoinedUp, who are closing their altcoin exchange.

Ethereum Presale Approaches 50 Million Ether Sold

Ethereum’s Ether presale has shattered expectations. Just 16 days into the 42-day sale, Ethereum have sold more than 48 million Ether, raising 24,745 bitcoins, or its USD equivalent of more than $14.5 million.

Vitalik Buterin and Ethereum have sold nearly 50 million Ether in the first 16 days of the sale.

Ethereum is one of several platforms seeking to become the leader in the smart contract and decentralized autonomous organization industry, facing competition from Nxt, Ripple, Mastercoin, and Counterparty, among others.

One thing that remains to be seen is whether the presale will have a significant effect on the Bitcoin price. Ethereum have said they will liquidate up to 5,000 bitcoins during the presale itself to cover research costs and pay employee salaries, which amounts to nearly $3 million per CoinMarketCap‘s current exchange rate. If Ethereum liquidated all the bitcoins at once, it would increase Bitcoin trading volume by a statistically significant percentage. However, it seems more likely Ethereum will sell the bitcoins gradually to avoid disrupting the market.

Shadowcoin Introduces First Mobile Wallet with Staking Functionality

 

Shadowcoin’s staking wallet will release on August 12 for Android phones.

Since its launch on July 19, Shadowcoin has implemented a host of privacy-centric features into its platform, including ShadowSend stealth addresses and ShadowChat, an encrypted messaging system. Shadowcoin’s latest announcement is ShadowGo, the first cryptocurrency mobile wallet with Proof of Stake (PoS) staking functionality. In addition to staking, the wallet supports both ShadowSend and ShadowChat.

One question users have raised about the wallet is how it will affect battery life. Developers conceded it will affect battery life, but users can tailor the configuration to reduce power consumption. Moreover, it will not consume as much battery as power-hogs such as bright screens and data connections.

The wallet will release on August 12 for Android phones. There is no current release date for iOS support, but it is expected to follow soon.

CoinedUp Closes Their Altcoin Exchange

 

CoinedUp is closing their altcoin exchange. Users should withdraw their balances as soon as possible.

After struggling to gain volume, CoinedUp has decided to close their altcoin exchange. They made the announcement in a statement on the CoinedUp subreddit.

“We are closing our markets simply because our volume is too low. At this time, we are exploring our options and may transition the site into a new crypto related project. All user accounts are 100% funded, so we hope that this transition process will be as smooth as possible.”

CoinedUp encourages users to withdraw their balances from their wallets as soon as possible so the developers can shut down the platform.

Though CoinedUp was never able to achieve a significant share of the crowded altcoin exchange market, users were very fond of the platform as well as its management. As one user stated on Twitter:

“Just read that CoinedUP is giving up–nostalgic place…they never got hacked and always kept our coins safe.”

CoinedUp plans to transition their site into a new crypto-related project, though they have yet to announce any concrete details.

That’s all for this week. Have an altcoin news tip you think CCN should feature in next week’s article? Email Josiah at JosiahWilmoth@Gmail.com

Source : http://www.cryptocoinsnews.com

Vogogo Raises $8.5 Million to Boost Bitcoin Exchange Security

 

Calgary-based online payment services provider Vogogo, a platform that automates payment processing, regulatory compliance and risk management for businesses, including clients in the bitcoin and digital currency sector, has raised $8.5m in new funding.

The round was led by Cormark Securities Inc and included Beacon Securities Limited, Canaccord Genuity Corp, Clarus Securities and Salmon Partners, with the capital aimed at helping the company expand its service beyond Canada to the US and Europe.

Speaking to CoinDesk, Vogogo CSO Rodney Thompson said that his firm has become more actively involved in the digital currency space, owing to the need of the industry’s businesses for a partner that can handle fiat compliance and the associated fraud mitigation responsibilities that coincide with these offerings.

Thompson told CoinDesk that most of his firm’s partners are digital currency exchanges that have turned to Vogogo to handle their risk management, know your customer (KYC), anti-money laundering (AML), fraud mitigation and dispute resolution needs, explaining:

“Our banking partners are willing to work with us so we can put our payment processing behind that. It’s been proven that [the digital currency industry] is trying to put its best foot forward, but people are having a difficult time with managing the platform side of it.”

Thompson indicates that Vogogo has become a valuable third-party partner that allows digital currency businesses to mitigate fraud in real time, without having to build in-house systems that meet this need.

Now, Thompson indicated, his firm is looking to build on this success to perform similar services to digital currency companies operating outside of Canada, adding:

“For us, it’s just about growth, taking what we’ve been doing in Canada and expanding out globally. From our side, we’re specializing this piece of what we do for the crypto industry, for crypto businesses.”

Early market entrance

Thompson indicated that though Vogogo and its employees have had an internal interest in bitcoin for some time, as the company’s CTO was an early and active bitcoin miner.

Despite the familiarity, it wasn’t until the June 2013 closure of LibertyBit, then the second-largest exchange in Canada, that the company became convinced it could serve a real business need in the budding industry.

Thompson recalls:

“LibertyBit really stands out to me, because they were ran into a problem where they were doing online bank maintenance and they thought they were indemnified, and of course there really is no such thing as an indemnified payment, and they went down. So, it was then that you were just starting to see the issues around it.”

This development, as well as similar shutdowns from other major exchanges, pushed Vogogo to look more closely at the opportunity. After about three months of development, Vogogo tailored its offering to the digital currency space and began serving the market.

How Vogogo works

Thompson revealed Vogogo is currently working on a new product release that will allow it to handle KYC, AML and compliance requirements for digital currency exchanges.

“We [will] do the ongoing fraud mitigation. So, we will set the customer with their payment and all the ongoing fraud mitigation around it,” Thompson said. “What that means is we’ll manage all your bad debt, any fraud scenarios that happen, we manage all that.”

Vogogo doesn’t actually handle bitcoins or altcoins for its clients. Instead, Vogogo ensures that fiat payments are managed correctly, limiting its clients’ risk for chargebacks and the other previously mentioned issues that come with the responsibility for customer funds.

Thompson added: “When an end user gets to that exchange to deal in bitcoin or altcoin, that’s on the exchange. When they want to take whatever they’ve sold and move the fiat back into the currency of their choice, that’s also on [the exchange."

No pivot needed

Thompson said that while Vogogo is happy to serve clients in the digital currency space, extending its services to this community doesn't necessitate a fundamental change in its business. Vogogo had historically served e-commerce platforms, and continues to do so.

Rather, Thompson indicated that all Vogogo needed to do was gear its existing offerings to the needs of the space while capitalizing on existing expertise.

He continued:

"We've always dealt in secondary payment options, and that being payments that aren't credit card related, and because of that, we've always had a risk engine in front of those payments."

When asked about potential upcoming digital currency regulation in Canada, the CSO said that this, too, won't require Vogogo to shift or change its product offering.

"For us, we have a really strong payments team, we have a really strong risk management team, legal team, so we're constantly adapting what we do on the shifts, regulatory or other. If there is a change on the regulatory side that we need to address, it's pretty easy for us to make those changes and to make our platforms compliant."

Expanding to new markets

As for the funding, Thompson indicated that it will be necessary given the company's desire to enter new markets in Europe and North America, especially owing to the expense of expanding a risk platform globally.

This expansion, Thompson said, will require Vogogo's payment solutions to be customized and integrated with domestic banks.

Thompson concluded:

"We take working with our banking partners and any regulatory requirements very seriously, we don't cut any corners. [If] we’re set up to be somewhere, it’s all set up properly.”

Source : http://www.coindesk.com

Avalancha Opens Online Store to Argentina’s Bitcoin Shoppers

 

Argentina-based e-commerce company Avalancha has announced it will now accept bitcoin through a new strategic partnership with bitcoin merchant processor BitPagos and Latin America-focused bitcoin exchange Bitex.la.

Launching this May, Avalancha aims to provide Argentinian consumers with a convenient buying option for electronics and home appliances, and it sees bitcoin as a key investment that will help it better serve its growing customer base.

Miguel Klurfan, CEO of Avalancha, told CoinDesk that his company is focused on giving online shoppers a greater degree of convenience, and that Argentina’s credit card processors simply add too much friction to the buying process.

He explained:

“Paying with bitcoin is seamless, while [...] payment processing companies in Argentina are not so well prepared for online business. That’s why we are very interested in developing bitcoin as soon as possible.”

Klurfan went on to express his hope that Avalancha’s decision will be as beneficial to bitcoin, which has grown increasingly popular in the region amid concerns about the country’s financial status.

“For Argentinians that may be hesitant about bitcoin, hearing the news that you can buy a refrigerator with bitcoin will encourage them to increase the adoption of the currency,” Klurfan noted.

Avalancha has earned $10m pesos in revenue since its launch, with the goal of earning $25m pesos by the year’s end.

Inside the partnership

As part of the deal, Avalancha will use BitPagos as its payment processor, providing bitcoin users in South America with the ability to purchase a wide range of goods with bitcoin from major brands that include Nintendo, Samsung, Whirlpool and more. Bitex.la’s role will be to help sell some of the bitcoins Avalancha receives for US dollars at the company’s request.

Members of Bitex.la and BitPagos say that Avalancha sees bitcoin as a payment tool that will help encourage consumer spending, and one that positions the company for long-term growth.

Klurfan was also optimistic about his selection of partners and their enthusiasm for the project, saying:

“We see ourself as a technology company and everyone on our team is young and an early-adopter. We made a really good match with the guys from Bitex.la and BitPagos.”

BitPagos raised $600,000 earlier this year from investors including bitcoin hedge fund Pantera Capital, Bitcoin Investment Trust CEO Barry Silbert and Silk Road auction winner Tim Draper. Likewise, Bitex.la launched in May with a $2m investment to provide bitcoin exchanges services to Latin American markets.

Competitive advantage

Christian Nubis, chief product officer at Bitex.la, explained that the move benefits Avalancha by providing the company with a compelling way to attract new consumers, explaining:

“The entire consumer electronics and appliance space is very competitive and they always want to be ahead of the curve. A lot of these retail chain stores have been looking into bitcoin in order to have a competitive advantage over the competition.”

Fran Buero, the company’s chief operating officer, elaborated further, suggesting that the partnership will allow Avalancha to receive money faster than if it waited for credit card payment, while protecting the company from inflation.

Nubis added:

“If Avalancha sells a washing machine and the consumer pays with credit card, inflation is so high they might end up losing money, because with the money they get 20 days from now, the washing machine might be more expensive, at least with the current situation in Argentina.”

Argentinian consumers have been said to be turning to bitcoin as a solution to inflation in recent years, although figures for adoption in the country aren’t widely known.

Still, while consumer adoption has been allegedly strong, merchant adoption has lagged behind owing to uncertainty around potential bitcoin regulation and worries that Argentina could crack down on bitcoin in moves that echo recent decisions in Bolivia and Ecuador.

Ready to spend

However, given that many Argentina-based bitcoin consumers are using bitcoin as a way to guard against inflation, it remains to be seen whether they would be comfortable spending it given the opportunity.

Klurfan, however, is optimistic about the new initiative, dismissing suggestions that Argentina’s consumers might be seeking to simply preserve value in bitcoin, saying:

“I know that there are not so many Argentinians holding bitcoin right now, but I believe those who do would be really really excited about it.”

Nubis suggested that this concern may be unwarranted. Bitcoin, he asserts, will actually provide a powerful incentive for spending by making it easier for consumers to tap wealth that may be stored outside of Argentina:

“It will be very compelling for people to spend bitcoin for a number of reasons. [...] If you have to bring money into the country, it’s very expensive if you want to bring small amounts, whereas buying bitcoin overseas is quite cheap and using that directly for payment is also very convenient.”

He added: “We think a lot of people are going to find bitcoin a more convenient way of buying electronics and home appliances.”

Source : http://www.coindesk.com 

Wikipedia Raises $140,000 in First Week of Bitcoin Donations

 

The Wikimedia Foundation, the non-profit that owns and curates noted online encyclopedia Wikipedia, has received more than $140,000 in bitcoin donations since it began accepting contributions in the digital currency last week.

The news follows the announcement of the organization’s partnership with California-based payments processor Coinbase to accept bitcoin on 30th July, a development that was widely seen as a validation of bitcoin’s potential to impact non-profit fundraising.

Coinbase revealed the fundraising milestone in a new blog post, saying that the $140,000 – an amount worth approximately 237 BTC – is a sign that bitcoin and the open-source site will continue to prove to be a powerful combination.

The company added:

“We were particularly excited to enable the Wikimedia Foundation to accept bitcoin donations because we feel that the decentralized, inclusive nature of Wikipedia is well aligned with bitcoin and we wanted to help the bitcoin community contribute to the democratization of information.”

The Wikimedia Foundation had been internally discussing the addition of a bitcoin donation option for months as grassroots support within its community grew.

Notably, Coinbase announced on 1st August that it had dropped all processing fees for the non-profits it serves, including the Wikimedia Foundation.

Sign of success

The bitcoin acceptance – and the ability to raise a significant amount – suggests the staying power of digital currency donations, owing to the combination of tax benefits and transaction cost savings.

In the past, the Wikimedia Foundation has said that the decision was made only after strong internal debate about the legal and financial implications of doing so.

The company previously said:

“Using Coinbase, a bitcoin exchange, we’re able to immediately convert bitcoin to US dollars, requiring minimal technical implementation on our end. Since we now also have guidance on how to account for bitcoin, there is a clear understanding of how to legally manage it.”

The Wikimedia Foundation was unavailable for comment at press time.

Source : http://www.coindesk.com 

XAPO Debit Card Exclusive Interview - Fees Reimbursed in Bitcoin

XAPO Cat is watching you…

You may have heard about how XAPO is charging excessive previously undisclosed fees on their Xapo Debit Card, but what you may not know is that they will reimburse you for the third-party monthly fees, in Bitcoin! Though, aside from the $15 shipping fees, XAPO included a few other hidden fees they consider to be “customary fees just as with any other debit card.”

XAPO Debit Card Fees

XAPO has been under a lot of PR stress lately as they released the fee schedule from their debit card supplier. On August 4th, XAPO posted an update on their news feed which stated that not only are the third-party card supplier’s monthly fees reimbursed, but that they will not ship to you if you’re in the USA or India. Due to financial regulations in those countries, if you’re in the USA or India, your XAPO debit card pre-order will have to wait for XAPO to find a legal way to distribute cards to your country before you’ll receive your card.

XAPO seems to be sealing its own fate with the newly introduced ATM fees and their program not being compatible with certain countries, but at least there won’t be any monthly fees. No one wants to pay monthly fees and not everyone plans on using an ATM with similar fees as that of a cryptocurrency exchange. People can still get their balance online, and many people have a smartphone to go online while mobile.

In the USA, I’ve never heard of a bank charging for a debit card replacement, but other companies might have that fee if someone steals your card. It seems more like a fee for the “pleasure” of being robbed. Now, if you lose your card, then the fee makes more ethical sense. The fee is just labeled “Card Replacement,” so it sounds like they charge it either way.

In case you missed the fee schedule from earlier in the week, here it is again.

 

In their words…

In a support email, Fernando of XAPO stated the following:

To be clear, there is a one-time $15 fee we will collect when users complete the invitation process. This fee will be debited from your Xapo Wallet. There will not be monthly service fees associated with the card. In other words, if you simply do not use the card you will not be charged anything.

There [are], however, customary fees just as with any other debit card. [That] includes ATM withdrawal fees, replacing a card that was lost or for foreign currency conversion. Those customary fees would be charged to you as [a] user. Refer to the Fees & Limitations Schedule to see what they are (don’t forget that Monthly Service Fee will be reimbursed).

Exclusive Interview with Ted Rogers, Chief Strategy Officer

XAPO stated in an email to me that you will only charge a one-time fee of $15 and that any third-party fees from your payment processor will be refunded to the customer’s account as BTC. Will these fees be credited transparently or will they potentially hinder usage of the card until you credit them? When will the fees be credited to the account?

The Xapo Debit Card will charge a one-time fee of US$15 when the card is ordered by [the] customer. This amount will be debited from your Xapo Wallet in bitcoins. We do not, however, intend to charge monthly fees or fees for everyday spending.
Xapo will reimburse users for any monthly service fees charged by our third party service provider, directly to their Bitcoin account. We are currently working through the details to make this as seamless as possible for our customers and will provide an update when more information is available.

Where does XAPO get the funding from to pay for these fees for every last customer they have? If that is quite costly for XAPO, will XAPO eventually start charging fees to it’s customers for their services in order to be more like an expensive bank? If so, this will almost undoubtedly result in many customers closing their accounts as one of the main goals of Bitcoin is to get away from excessive fees. XAPO is an expendable convenience.

We believe that [six] billion unbanked people worldwide deserve and will eventually have access to basic financial services because of bitcoin, in part because transactions using bitcoin are less expensive than existing methods.
Nevertheless, while bitcoin payments are virtually free, card programs are not.  We are willing to cover a large portion of the expenses of the debit card program because we view the debit card not just as a key feature for our users but one that will help [broaden] adoption of bitcoin.  Our card program bridges traditional merchants (that do not touch bitcoin) with Xapo users.

In what country is XAPO located? Does it treat international accounts any different than domestic accounts? Are fees different for international and domestic accounts?

Xapo is headquartered in Palo Alto, California and incorporated in Hong Kong.
The card will be denominated in US Dollars, Euros or British Pounds when issued. Similarly to using your local debit card when traveling abroad, purchases made in a different currency will be subject to an additional 3% Foreign Exchange fee.
We have worked hard on providing a way for users to conveniently transact with bitcoin and will continue to work towards this goal while complying with all levels of local and international regulations.

How do you feel about XAPO? Do you own a XAPO card or is yours on pre-order? Leave a comment below or discuss this in the CCN forums and let me know what you think.

Disclosure: I own an account with XAPO and I have a pre-ordered debit card, but I’m in the USA, so who knows how long it will take for me to get my card…

Source : http://www.cryptocoinsnews.com

From Hackers to Hipsters: Social Media’s Influence on Bitcoin Price

 

A new study carried out by ETH Zurich, Switzerland’s leading technology university, has found that the public perception of bitcoin is changing.

Rather than being a mysterious cryptocurrency for geeks or criminals, bitcoin has transformed into a much bigger phenomenon.

David Garcia, a postdoctoral fellow at the ETH Zurich Department of Systems Design, said the image of bitcoin has changed fundamentally:

“Previously bitcoins were something for hackers and computer nerds. Today hipsters pay for their drinks with it.”

The  research paper, which is entitled ‘The Digital Traces of Bubbles: Feedback Cycles Between Socio-Economic Signals in the Bitcoin Economy’, looks at how the social dimensions of the users of bitcoin and their interactions with social media affect its price.

The authors say:

“Amidst the hype surrounding the cryptocurrency, it is difficult to recognize which factors participate in its growth and influence its value. Bitcoin’s decentralised structure, based on the contribution of its users rather than a central authority, implies that the dynamics of its economy may be strongly driven by social factors, which are composed of interactions between the actors of the market.”

Spikes in the data

Garcia and his colleagues examined the spikes in Google searches for bitcoin, and postulated that the increase in value was accelerated by online activity, especially social media.

To test their hypothesis the researchers analysed four different socioeconomic parameters: the development of the user base, price fluctuations, search trends and interactions on social media platforms like Twitter.

The researchers found strong correlations between price development, the number of new bitcoin users, Internet searches and tweets related to bitcoin. They also identified two positive feedback loops. In the first, the increased popularity led to growing demand, which in turn stimulated activity on social media. The second loop relates to the user base: the more users join the network, the higher the price.

However, there is also negative feedback: before a significant drop in prices, the level of activity on the Internet skyrockets. The researchers concluded that big changes in online and social media activities lead to major price fluctuations.

The power of the network

Garcia’s colleague and co-author Nicolas Perony sees great potential in the quantitative analysis of social phenomena.

“With digital currencies we can examine certain aspects of the economy which cannot be observed with cash,” said Perony. “That way we can better understand how the market really works.”

Perony argues that the same methodology can be applied to other areas of society, thanks to block-chain technology. He points out that the bitcoin network is 300 times more powerful than the 500 most powerful supercomputers combined.

“The big question is how one could use such a powerful system for collaborative activities that go beyond the production of money,” said Perony.

Perony believes it would be possible to use the system to manage ownership of certain goods or to help collaborative research efforts, as the network could be used to conduct research on various collaborative concepts.

Source : http://www.coindesk.com

Bitcoin Monthly Technical Analysis Courtesy of EddieTofpik, ADM Investor Services

It’s no secret that Wall Street has been warming up to the potentials of bitcoin, whether as a traded asset for customers, market making, or providing trading technology, many in the financial industry view digital currencies as here to stay.  We have also seen the emergence of traditional asset analysts beginning to create both fundamental and technical research on bitcoins.

For today’s Bitcoin Technical Analysis column, DC Magnates presents research from Eddie Tofpik, Head of Foreign Exchange at ADM Investor Services.   Covering bitcoin is a first for Tofpik, who is known around the industry for providing daily FX and commodity market commentary, longer term technical analysis, and writing about how new financial regulations will affect the industry.  The bitcoin commentary occurs as the digital currency was added this week onto Thomson Reuters Eikon charting platforms.  If you like deep technical analysis, Eddie Tofpik’s research has got you covered.

A first for me, a regular monthly Technical Analysis of a cryptocurrency… Bitcoin!

Looking at the longer term charts coming in-on the Monthly Chart, after an Indecisive Spinning Top Formation, the market tried lower last month and this was reflected in the Weekly Chart with two Indecisive Dojis followed by and Open and Close Black Marubozo that showed the bearish action well.

On the Daily Chart above we have what looks like two failed patterns- the longer Reverse Head and Shoulders (H+S) from Fed to data and the failed Double Bottom Pattern of the June running into July move!  The drop down was halted somewhat in late July with an ‘almost’ Key Reversal Up but then again it was an ‘almost’ pattern in a bear move so it doesn’t look like it will hold to scrutiny. What was interested was the bounce happened from the 38.2% Fib of the April to June move, the late June low at 552.10 and to a minor extent it seems the Medium MA (currently 567.72).

What is also interesting is that we are resting upon the 50% Absolute Fib support as support at 582.13! Now we have been under 582.13 in recent times and we have even had two consecutive closes underneath but we have reversed up each time… so watching this be important as a continuation of the bearish move will require at least (now) three consecutive closes underneath!

Finally, we also have a Dead Cross of the Short MA down through the Short/Medium MA.. this can be viewed as a minor bullish indicator but it is the first Dead Cross for quite some time! So if there was a target for the downside where would it be-well the recent 50% Fib at 511.48 might suit but this might not happen.  Topside, look for consecutive closes over the recent Downtrend (currently 634.07) to signal a change…Perhaps

Overall, Tofpik has Bitcoin rated as a ‘Trend Down?’ which he defines as “Any one or more of the following may occur! Market has turned down/fallen and is likely to carry on, usually till at least the next Monthly FX Commentary.  Moving Averages are pointing lower of have either crossed, formed a ‘Dead Cross’ or topped out.  Chart patterns and trendlines (Channel, Support, Andrew’s Pitchfork etc..) point lower.  Non appreciable support levels (Fibs, Historical, etc) are noted.

Source : http://dcmagnates.com

Global Payments is working with BitPay to offer Bitcoin option

Global Payments, considered one of the largest worldwide providers of payment solutions, announced this week that it has signed a referral agreement with the crypto-payment processor BitPay. The new partnership allows Global Payments to offer a Bitcoin payment option to all its merchants across the world.

“We focus on delivering innovative products and services to our global customer base, and this relationship provides us the ability to offer our merchants an integrated digital currency payment choice”, said David Mangum, COO for Global Payments.

We are pleased to partner with BitPay to provide next-generation payment solutions to our customers.

“This partnership with Global Payments allows ecommerce and retail merchants to easily accept Bitcoin payments“, confirmed Tony Gallippi, BitPay’s chairman.

 

 “The cross-border demands of global merchants present a great opportunity for Bitcoin acceptance and will allow us to reach more customers in emerging markets”, he added.

This deal means a lot to the Bitcoin ecosystem, since Global Payments is a Fortune 1000 company.

The brand, known as one of the largest worldwide providers of payment solutions, works with hundreds of merchants, resellers, financial institutions, government agencies multi-national corporations and independent sales organizations located throughout North America, South America, Europe and the Asia-Pacific region.

Source : http://bitcoinexaminer.org