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Crypto News: Provident Accepts Deposits, ATMs to Sell Bitcoin



The traditional financial world has had a rocky relationship with cryptocurrency-related businesses. That’s to be expected, as crypto and blockchain technology could potentially disrupt a huge swath of the current global financial system.

But some forward-thinking financial companies are willing to provide much-needed services to this fast-growing industry. Read on to learn more about one bank that could enjoy a massive inflow of deposits thanks to its new crypto-related services, as well as a fintech company seeking to use ATMs to bing crypto to the masses.

Provident wants to be the crypto industry’s bank

The Provident Bank is now offering deposit services for cryptocurrency-related businesses. The Massachusetts-based commercial bank, which is a subsidiary of Provident Bancorp, Inc. (NASDAQ: PVBC), has become one of a select few U.S. banks to offer banking services to cryptoasset companies and investors. 

“The Provident Bank is proud to be entering the digital asset space because it’s largely unbanked and clients want deposit services,” CEO Dave Mansfield said in a press release. “The Provident team developed robust measures to ensure our strategy will not only be effective from a regulatory compliance perspective, but will also allow for our clients to have certainty in a long-term banking relationship.”

Provident will use Bitfury’s Crystal Blockchain analytics platform for client onboarding and anti-money laundering (AML) transaction monitoring. “The cryptocurrency and blockchain industries represent a growing sector that is increasingly important as companies adopt digital assets,” Crystal Blockchain CEO Marina Khaustova said. “We are honored to be partnering with The Provident Bank to extend banking services and compliance platforms to this industry through the use of our leading compliance and AML platform.”

Notably, Provident’s customer deposits will be insured in full thanks to the bank’s affiliation with the Depositors Insurance Fund, which is available only to mutual savings banks chartered in Massachusetts. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000, and the Depositors Insurance Fund insures the rest, “down to the last penny.”

Access to legitimate banking services has been a major challenge for crypto companies for most of the past decade. The ability to access insured deposit services and other banking solutions offered by the likes of Provident Bancorp should help to further legitimize the crypto industry — and fuel its growth.

You may soon be able to buy Bitcoin at your local ATM

While Provident wants to bring banking to the crypto world, Coinsquare wants to bring crypto to ATMs. 

The Canada-based cryptocurrency trading platform obtained a controlling investment stake in Just Cash, a financial technology software provider. Just Cash’s software enables any ATM to sell cryptocurrency — such as Bitcoin and Ethereum — to customers via debit card transactions. The feature can be added to ATMs via a routine software update and requires no additional hardware. Moreover, Coinsquare says users will be able to “buy cryptocurrency through the safe, familiar, and trusted process of an ATM transaction.”

“Right now, there is a lack of mainstream cryptocurrency adoption because most people are intimidated by the process to acquire it,” Coinsquare CEO Cole Diamond said in a press release. “By using the millions of existing ATMs around the world, we can now bridge the gap and give new users the easiest and most familiar experience to purchase cryptocurrency.”

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Coinbase Releases New Data Tools for ‘First-Time’ Crypto Investors



Coinbase is rolling out new tools to help entry-level crypto users understand what seasoned traders are up to.

The exchange announced Wednesday the availability of a new suite of signaling tools. One such tool broadcasts the activity of Coinbase’s top traders.

“The top holder activity signal is the percentage of Coinbase customers with large balances of an asset (top 10%) who have net increased (bought) or decreased (sold) their positions in that asset through trading over the last 24 hours,” an official Coinbase blog post explained. “This is updated approximately every 2 hours.”

Speaking to CoinDesk, a Coinbase spokesperson further detailed that top holder activity would be aggregated from all individual Coinbase accounts across the exchange – excluding those set up by institutions.

Beyond sharing metrics on Coinbase power users, the San Francisco-based company is rolling out other data tools to help retail users make more informed decisions.

Coinbase customers will also be able see the median number of days an asset is held by traders on the exchange before being sold or moved to another address. Another tool gauges the popularity of assets on Coinbase, as well as relative price correlations to other crypto assets.

All these “exclusive” data tools are available to any user for free starting today, according to Coinbase.

Speaking to the goals behind adding the new tools, a Coinbase spokesperson told CoinDesk:

“For individual investors, especially those new to crypto, we hope these new signals will encourage more informed management of a diversified crypto portfolio. We want trading signals to help first-time investors build the right portfolio to suit their investment goals.”

Selling point

Having done some early analysis with these tools, Coinbase senior engineer Will Drevo says Coinbase’s top crypto accounts have a tendency to buy rather than sell their portfolio positions.

In another blog post, Drevo wrote:

“Historically, when top holders are either unusually bullish or bearish this has been indicative of changing market conditions, but not always.”

In sum, leveraging a strictly signal-based investment strategy, Drevo writes, is not always beneficial to traders and should not be taken directly as investment strategy or advice. Rather, users are encouraged “to create and manage their own crypto strategy” based on a user’s own needs, financial means and risk tolerance.

“If in doubt, consider consulting a financial professional,” Drevo writes.

Founded in 2012, Coinbase snagged an $8 billion valuation late last year after raising $300 million in venture capital. As reported last week, the exchange may soon set up its own insurance company with the help of brokerage Aon.

Coinbase CEO Brian Armstrong via CoinDesk archives


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Top-5 Crypto Tokens Pronounced ‘Dead’ — NEM and BCC Head the List



In 2017, the cost of Bitcoin (BTC) reached almost $20,000, and in December 2018, its rate fell to $3,187 per token. Nevertheless, it is a solid price movement for a currency, which was created from nothing about 10 years ago. Bitcoin still dominates the portfolios of most crypto investors and is by far the most popular cryptocurrency, meaning its price is less prone to drops than the rest of the market. This is also indicated by the CoinMarketCap dominance chart. But what about the rest of the cryptocurrencies that have appeared over the past couple of years?

In 2017, the cost of Bitcoin (BTC) reached almost $20,000, and in December 2018, its rate fell to $3,187 per token. Nevertheless, it is a solid price movement for a currency, which was created from nothing about 10 years ago. Bitcoin still dominates the portfolios of most crypto investors and is by far the most popular cryptocurrency, meaning its price is less prone to drops than the rest of the market.This is also indicated by the CoinMarketCap dominance chart. But what about the rest of the cryptocurrencies that have appeared over the past couple of years?

In 2018, CNBC reported that approximately 800 cryptocurrencies, which appeared as a result of initial coin offering (ICO), can now be called “dead,” because they are traded at a price below $0.01. In 2019, this figure continued to increase.

Resources that specialize in “dead” cryptocurrencies have launched, such as Deadcoins and Coinopsy, according to which, in 2018, about 1,000 different cryptocurrencies failed. Many “dead” crypto projects were scams organized as ICOs and some could not stand the pressure of the bearish market in late 2018. That is how Jay Richler, co-founder of Coinopsy, described to Cointelegraph the huge number of failed coins listed in different exchanges: 

“Before 2016, most failed due to just making a coin for fun, and then developers just gave up of pulled a small scam or pump-and-dump. After 2016, market got saturated with coins, so exchange listings now cost large amounts of $$$, for example Binance is like 1 million to get listed from memory. So after 2016, it was either well planed scams with funding and marketing or coins that started just didn’t have the funding and direction.This is most but not all.”

The Deadcoins’ team responded to Cointelegraph by saying that it is convinced that the main reason for cryptos failing is the lack of utility on their behalf:

“Many of the altcoins most probably to fail for many reasons, but the main reason will be the lack of utility and the use case or overlapping with other altcoin or their use case is already satisfied by BTC or other major coins.”

Here are our top-five cryptocurrencies that have been deemed “dead” by some — which were terminated by their founders, that turned out to be scams or had low trading volumes for three months. Some entries in this list may come as a big surprise.

Top cryptocurrencies presumed "dead"


BitConnect tops this list of “dead” coins, as it is believed to be a fraudulent scheme — one of the largest in the history of crypto. The BitConnect project was accused of creating a large-scale financial pyramid.

BitConnect’s blistering invasion of the CoinMarketCap top-10 list, with a capitalization of $2 billion shortly after the launch of the project in January 2017, stunned many, and rumors of a dubious scheme began to spread rather quickly. However, only by the end of 2017 did cryptocurrency investors decide to publicly accuse the project of organizing an investment scam — a so-called Ponzi scheme.

One of the more prominent critics of the project was billionaire and well-known Bitcoin investor Mike Novogratz, who stated on Twitter that BitConnect really looks like a Ponzi scheme that hurts the image of the entire industry: “BitConnect really seems like a scam. an old school ponzi… bad actors hurt the community. period.”

The reason for all this resentment is the BitConnect lending program. The project promised significant bonuses for deposits in Bitcoin. But according to disgruntled users, the bonus payment mechanism remained opaque, and the nature of its origin was unknown. This led the community to suspect that the project represented a financial pyramid built on top of a multilevel referral system.

Many critics pointed out that the only possible source of bonus profits are deposits from new investors, but that information was kept secret by the founders of the project, whose identities were unknown. However, in early 2018, BitConnect was beginning to collapse. Texas and North Carolina regulators forced the founders to close the lending program and their cryptocurrency exchange, making the BitConnect (BCC) token redundant and subsequently causing it to depreciate. Then, one by one, collective lawsuits started to be filed against BitConnect, and United States authorities came to grips with investigating the activities of the project — whereby a U.S. court decided to freeze its assets.


NEM, or New Economy Movement, is a cryptocurrency that launched in March 2015. The active development of the NEM cryptocurrency began in 2016. The uniqueness of NEM lies in the fact that its development was carried out on original open-source code, thanks to which the cryptocurrency was able to initiate many useful innovations. The entry, withdrawal and exchange of the NEM cryptocurrency takes place on exchanges.

NEM is used to make instant transfers and payments worldwide without large commissions. It can be purchased both online and for cash, as well as be used for exchange operations among other currencies. NEM has become a very popular cryptocurrency and now is in the top-30 currencies by the market capitalization indicator, according to Coin360.

However, one of the largest cryptocurrency exchanges in Japan, Coincheck, confirmed in January 2018 that a large scale theft of funds from the platform has taken place. A total of $123.5 million in the form of NEM tokens (XEM) was claimed. At the time, Coincheck suspended all operations with NEM and other altcoins. Meanwhile, unconfirmed reports were received that unknown attackers stole further $600 million worth of NEM from the exchange.

Shortly afterward, Coincheck representatives officially reported the total losses of 58 billion yen ($123.5 million). The exchange filed a statement with the Financial Services Agency of Japan (FSA) and local law enforcement agencies regarding the cyber attack. Also, representatives of Coincheck assured that they were studying ways to compensate users for the lost funds. Despite assurances from the NEM Foundation, the news of the Coincheck hack and the theft of such a large amount led to a sharp decline of XEM: The coin dropped sharply in a short period of time, and by February, its value was about $0.60 and is still floating around that level.

Price of NEM since its drop from all time high of $2.05



According to the latest Global Public Blockchain Technology Assessment Index of the CCID conducted by China, on which Cointelehraph reported, NEM retains the last spot in the index. The state-sponsored index evaluates projects based on their technology, application and innovation.


The Russian-based project Universa attracted $28 million during its token sale in December 2017. The stated goal was to create a blockchain platform for business applications based on the high-speed Universa blockchain protocol, with a capacity of up to 22,000 transactions per second (TPS). An important fact for the promotion of the project was the partnership with Ernst & Young (EY) — and one of the top Russian banks, Alfa Bank — and has certainly strengthened Universa’s image as a domestic blockchain industry pioneer.

The founder of MGT Capital Investments and the creator of anti-virus software McAfee Security, John McAfee, became a member of the advisory committee of the Russian blockchain project, headed by businessman Alexander Borodich. McAfee spoke about this at the time on Twitter:

“I am proud to become an advisor @Universa_news and build McAfee Coin on the fastest blockchain. Join the revolution/ICO today!”

However, as soon as the markets cooled down, a conflict among the members of the project’s management became evident, which resulted in legal proceedings being filed following the accusations of damaging the business’s reputation among the founders of the project. But while the management of the company was figuring out their differences, the daily trading volume of tokens hardly managed to reach $42.000, the liquidity was almost absent and the HitBTC exchange delisted this cryptocurrency. 

Bitcoin Diamond

Bitcoin Diamond (BCD) is a fork of Bitcoin. This cryptocurrency was created in November 2017 as a result of the separation of the mainchain of Bitcoin after block #495866. The purpose of the cryptocurrency is the same as the original Bitcoin, as a means of payment that is convenient for online purchases. The BCD token was credited to all Bitcoin token holders automatically after the fork. The accrual was carried out at a ratio of 1 BTC to 10 BCD. Thus, the maximum number of BCD tokens cannot exceed 210 million tokens, while 170 million tokens were released immediately and distributed among Bitcoin holders.

Bitcoin Diamond differs from the original Bitcoin in several key areas:

  • Block size was increased to 8 MB, eight times larger compared to Bitcoin.
  • A new encryption method was implemented, solving issues of confidentiality.
  • Increased speed of each block, reducing delays in confirming transactions and their costs.

The roadmap of the project promised that, by the beginning of 2020, Bitcoin Diamond should surpass Bitcoin in terms of its use cases. But the development plan has left a lot of uncertainties, with the main question being: When will work on the BCD token be competed? 

As per Coin360, Bitcoin Diamond’s capitalization is at around $140.5 million, and the cost of the tokens from the moment of listing has almost constantly been decreasing. At the time of the fork, BCD’s price reached $85 per token. Currently, one coin costs in the region of $0.80, marking a drop of almost 100%. Major players in the crypto market have voiced their concerns regarding the project — with Ledger, for example, stating that Bitcoin Diamond was involved in fraudulent schemes at the end of 2017:

“SCAM WARNING — multiple sites claim to let you collect Bitcoin Diamond. They’ll steal your assets. Never enter your mnemonic into a third party website.”

According to the statement, customers switched to websites related to cryptocurrency, on which they were asked to enter a password, and their BCD tokens were subsequently stolen in a classic case of website cloning. 


It may seem surprising that a traded token is on this list, but Emercoin can be attributed as a loser in the world of cryptocurrencies.

The project started in 2013, but it appeared on the lists of popular exchanges only in 2014. The Emercoin cryptocurrency was conceived as a payment tool on the internet. Presently, Emercoin serves only as a means of payment. In other words, this is money for buying goods — such as games, clothes, programs, etc. But this didn’t offer anything interesting or present attractive options for buyers. However, the developers are claiming that, in the near future, Emercoin will become a unique platform that will protect websites, copyright, etc. 

Despite the efforts of the creators, Bittrex announced at the end of June 2019 the withdrawal of several low-liquidity altcoins, including the Emercoin token — EMC. According to Coin360, the coin is at the 493 line, per the capitalization indicator.

Only the strong survive

No matter how low the price of a cryptocurrency falls, it can go even lower until it reaches zero, as was the case of BitConnect. Under the conditions of a downward market trend, all levels of support can be broken through on the way to full depreciation. That is why investors should stay away from low-liquidity instruments, which do not possess a stable influx of money, especially when those instruments begin to fall. Those who invest in it fall into a trap: Even if investors want to sell a falling crypto currency, they cannot — due to the lack of buyers — and are forced to watch their funds melt away. Richler Vanierwitz from Coinopsy told Cointelegraph how some nonliquid coins can come to life for a while, but then die:

“We were working on uncovering a big scam around local wallet with cryptocurrencies. There were around 500 coins in the wallet, but over time owners of this coins lost 80-90% of funding on these coins, but they kept making more. Through the time the owners revived this coins as new ones and listed again in some exchanges and for a short time the cost of these coins grew again but soon died. So I would not recommend buying any revived coin. Some other coins just get removed from one exchange then few months later get on a new one. Many reasons of the fall.”

Peter Brand, a financial analyst and trader, who correctly predicted an 80% drop in the cost of Bitcoin last year, takes a harsher stance, saying that only a few cryptocurrencies have a future ahead of them:

“Cryptos developed because of BTC. The cryptocurrency story is a Bitcoin story. It is difficult for me to specifically name those coins that will be worthless, but I genuinely believe that 99% will become worthless because their origination was driven by an attempt of a person, company or consortium to ride the coattails of Bitcoin. I believe that LTC and ETH have a good chance to retain value because of their already mass acceptance. On the other hand, I believe that niche coins (developed to address very specific purposes) and coins largely controlled (such as XRP) face an uphill journey.”


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Zygot joins forces with Matic Network to assure a secure P2P invoice exchange and more



Zygot has partnered with Matic Network to ensure safe invoice exchange for users, higher throughput, faster transaction, and reduced transaction fees.

Zygot has got some amazing news to share with its users and the crypto community. The leading ERP provider has recently started integrating crucial parts of its blockchain-powered ERP software ZERP with Matic Network. One of the first features which are currently being tested is a secure P2P invoice exchange for its clients.

Matic Network sidechains are Plasmafied EVM sidechains which have assured easy migration of Zygot to Matic Network.

As per the sources, Zygot’s first mission behind the partnership was to facilitate the ability to exchange invoices in a decentralized manner for its existing clients. And Matic’s blockchain, along with PGP encryption, and IPFS technology solves the bill elegantly.

Denko Mancheski, CEO & Co-Founder at Zygot stated,

“We are excited to partner up with Matic Network. Our vision is to create a system where parties can exchange invoices in a secure manner and Matic will help us to realize that. Additionally, using PGP’s asymmetric encryption, the data will be accessible solely by the recipient company. Also, the invoice data and its current status [invoice received, paid, requires modification, etc..] will be live on the Matic blockchain backed by a permission-driven entry. Such an ecosystem will help to prevent unauthorized access to your invoice data.”

Speaking further, Mr. Mancheski said,

“Matic partnership will enable Zygot to further migrate their core ERP engine on the blockchain along with a marketplace of enterprise apps.”

Mr. Mancheski also mentioned about the problem of low throughput given its traditional Ethereum base. The company covers over 400 client companies and it calls for high throughput blockchain with low [close to zero] fees. This is another area where Matic is able to help Zygot with its decentralized plasma operator mechanism that assures instant scalability.

Matic is able to command incredible scalability by using sidechains for off-chain computation. It also ensures asset security simultaneously using the Plasma framework and a decentralized network of Proof-of-Stake [PoS] validators.

In the words of Matic team,

“We beat the problem of low transaction throughput by utilizing a Block Producer layer to produce the blocks. Block Producer facilitates much faster production of blocks compared to traditional Ethereum blockchain ecosystem. We can guarantee 2 16 transactions per block, per second for a single Matic sidechain which will help Zygot to achieve higher throughput for its vast client base. We will also help Zygot to attain a massive reduction in transaction fees.”

For faster and low-cost confirmations Matic offloads transactions onto its sidechains which have 1-second block times. Then, the Network batches proofs of sidechain blocks with Merkle root of the blocks to a decentralized mainchain [Ethereum], utilizing decentralized PoS Stakers.

Source: Stoked

[In Frame [From Left] Sandeep Nailwal, COO, Matic Network, and Pankaj Kurumkar, CMO from ZygotERP]”About Matic

Matic Network is developed with a decentralized portal which uses an adapted version of Plasma framework that assures quicker and highly low-cost transactions with finality on the main chain. Matic represents an improved version of Ethereum and is devoid of the typical problems of traditional Ethereum.

About Zygot

Zygot is a reputed ERP solution provider with clients all over Europe. The company is currently developing a blockchain-based ERP software which is modular, decentralized, open-source, community-oriented, marketplace-facilitated and more secure and affordable than conventional ERPs. ZERP is powered by ZYGOT token. ZERP is aimed to help ERP users to beat the market monopoly imposed by big-scale ERP companies and bootstrap a new distribution channel for small and medium enterprise software providers.

More information can be found on the Zygot’s website, and by following their social media accounts: Telegram, Twitter, Reddit, Medium and for Media Contact.

Source: ambcrypto

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