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Ether

Chicago Mercantile Exchange to change Ether-reference rate; ETH-Futures on the horizon?

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If there is one true harbinger of the onrushing bulls in the cryptocurrency market, it’s regulated futures exchanges, particularly the last of the two initiators, the Chicago Mercantile Exchange [CME].

Hence, their possible leaning towards Ether Futures contract should be looked at with glee.

The CME group announced that the reference rate tied to the Ether-Dollar Reference Rate is set to change. The notice stated that the confirmation of the same will come about by July 15.

Three cryptocurrency exchanges have been included to prove pricing data for the Ether index in question, Bitstamp, Kraken, and itBit. The notice stated,

“Major cryptocurrency exchanges Bitstamp, Kraken, and itBit provide the pricing data to bring our dependable rate to the market.”

Although there was nothing apparent about the regulated futures exchange hinting at the possibility of an ETH-Futures contract, other sources emerged. According to The Block, the inclusion of itBit suggests that a derivative contract with the underlying asset being the second largest cryptocurrency could be a possibility.

The report quoted the source as saying,

“I think this is prep for an Ether future. They have to improve the robustness of their index.”

Volatility is a precursor in the cryptocurrency market, add onto that the lax-and betting-esque concept of a futures contract, could spell a ‘speculative disaster,’ for the cryptocurrency-futures market. Hence, the reliability of the data at the back of these contracts is pertinent to prevent price manipulation.

The source added that an “implicit limitation” of CME’s futures which are cash-settled is the need for “data from spot exchanges,” and credible ones at that.

Despite not giving anything away, the CME Group stated that they are ‘focused’ on their Ether Reference rate and Index, when questioned about ETH-Futures.

Futures contracts, especially those pegged on notable exchanges like CME and the late-Chicago Board of Options Exchange [CBOE], have come a long way since 2017. However, after their launch sparked the Bitcoin bull run, ending with Bitcoin close to $20,000, the aftermath has been brutal.

After an incredibly bearish 2018, spot markets as well as their futures’ counterpart turned for the better in 2019. The volume of XBT, the Bitcoin Futures contracts traded on the CME have been skyrocketing off-late. In the month of May, the average daily volume of XBT contracts on CME was over 13,600, a 250 percent growth since May 2018.

Source :ambcrypto


Ether

CFTC Chairman says “Ether is a commodity”

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CFTC Chairman Heath Tarbert has said in an interview that he thinks ether is a commodity. Ethereum is the worlds second-largest cryptocurrency behind Bitcoin.

Mr Tarbert said he believes ether is not a security when speaking at the Yahoo! Finance All Markets Summit. In a strong opening statement Tarbert said he wants America to lead in the game of blockchain he then went on to say:

“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now,” Tarbert said. “It is my view as chairman of the CFTC that ether is a commodity.”

In May, a senior CFTC official confirmed in a report with CoinDesk that the agency was ready to approve an Ethereum futures contract if it met the correct conditions. There are also plans to introduce a BTC options contract too. Tarbert went on to say:

“It stands to reason that similar assets should be treated similarly. If the underlying asset, the original digital asset, hasn’t been determined to be a security and is therefore a commodity, most likely the forked asset will be the same. Unless the fork itself raises some securities law issues under that classic Howey Test.”

So there you have it Ether is a commodity and will be on the CME exchange product list soon. Ethereum has moved higher in the last couple of hours but in general over the session is broadly flat. Sentiment in crypto’s is mixed today after the SEC rejected the latest EFT proposal from Bitwise.
 
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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Ether

United States Indicts two suspects in the EtherDelta hack two years later

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  •  victim of the EtherDelta exchange hack lost about $800,000.
  • Chinese authorities suspect that EtherDelta new owners pull an exit scam strategy.

The United States attorney’s office for the Northern District California documents show that a couple of suspects have been indicted. The two Elliot Gunton and Anthony Tyler Nashatka are suspected to have been involved in the hack attack on EtherDelta platform.

According to the documents Gunton also known as “Glubz” is 20 years old and resides in the United Kingdom. He is said to have taken part in another attack on TalkTalk. On the other hand, Nashatka is also known as “psycho” and lives in New York.

The hack on EtherDelta, a trading platform for Ethereum based tokens was executed in a span of two weeks starting on December 13,2017. The hackers illegally bought personal details from one of the employees of EtherDelta. The particular employee is documented as Z.C in the documents and is believed to be Zachary Coburn, the then CEO of EtherDelta.

The documents do not mention the exact extent of the hack, however, mentioned one of the victims lost around $800,00. Meanwhile, the Chinese authorities are said to be looking into an alleged exit scam likely to have been pulled by new owners of the EtherDelta. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source fxstreet

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Early Ethereum supporter charged with extortion scheme

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  • Steven Nerayoff may face 20 years in prison if convicted.
  • He is accused of extorting money from ICO startup.

The US authorities arrested  Steven Nerayoff, an early supporter of Ethereum project and an attorney and founder of blockchain consulting company Alchemist. U.S. law enforcement agency charges Nerayoff of extortion. The FBI also arrested an Alchemist associate Michael Hlady, who was allegedly involved in the scheme.

If convicted, Nerayoff and Hlady may spend the next 20 years in prison.

“As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency.  This Office and our partners at the FBI are committed to protecting businesses from extortion, whether the demands are for U.S. dollars or cryptocurrency,” United States Attorney Donoghue stated.
The authorities emphasised that the defendants exploited an age-old extortion scheme with a modern twist.  

Thus, according to the U.S. Attorney’s Office of the Eastern District of New York, Nerayoff’s firm was hired to promote an initial coin offering (ICO) for a blockchain-based startup for 22.5% of the  cryptocurrency tokens sold during the ICO and 22.5% of all the funds raised by the company. However, right before the ICO he demanded an additional 17 000 ETH otherwise he threatened to ruin the company’s reputation. The founders of the company conceded while the total amount of the fee reached 30 000 ETH.

Meanwhile, a spokesperson for Casper Labs confirmed to CoinDesk that Steven Nerayoff was no longer a member of its team.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source fxstreet


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