👮UPbit Exchange Raided ⚔️Billionaires Battle Crypto — Cryptos for the Rest of Us

The market had a big selloff towards the end of the week, triggered by news that UPbit was raided by the Korean authorities. It’s also worth noting that the Mt. Gox wallet had a large number of coins come out too. In the past, this activity has precipitated market volatility with speculation that the selling from the Mt. Gox wallet triggered the market downturn.

👮Korean Exchange UPbit Raided

What’s the Story?

Korean exchange UPbit was raided on Thursday and Friday by the Korean authorities. The exchange is accused of selling coins it didn’t have to customers.

“UPbit is currently under investigation by the prosecution, and we are working diligently. UPbit services such as all transactions and withdrawals are operating normally. Your assets are kept securely in your account, so you can rest assured that you can use UPbit services.”
– UPbit Website

Why Should I Care?

The news triggered a selloff in the market which has seen Bitcoin drop under USD9,000. This was likely precipitated by people rushing to pull their monies out of UPbit. As UPbit only supports altcoins, this meant that the selloff was let by tokens such as ETH, EOS, and TRON.

It’s worth noting that there hasn’t been an official announcement from the South Korean authorities yet.

We have secured hard disks and accounting books through confiscation. Analysis is expected to take days.
– Prosecutors’ Office

What’s Next?

If the accusations are true then it will be a further blow to the reputation of cryptos in Korea. Three Korean crypto exchanges were raided in March after being accused of illegally siphoning customers’ funds.

This also brings into question the reliability of centralised exchanges. If one of the largest exchanges can’t be trusted to operate correctly it could hasten the move to decentralised exchanges that are transparent.

⚔️ Billionaires Battle Over Bitcoin

🖥️Bill Gates vs. Tyler Winklevoss

As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,
Bitcoin and ICOs, I believe completely [they’re some] of the crazier, speculative things
I agree I would short it if there was an easy way to do it

– Bill Gates on CNBC’s Squawkbox

Tyler Winklevoss is one of the founders of Gemini, a large US crypto exchange. It’s been reported that Tyler and his twin brother Cameron Winklevoss are the first Bitcoin billionaires.

It remains to see if Bill Gates will take up Tyler Winklevoss’ challenge and actually short Bitcoin.

🚀Warren Buffet vs. Elon Musk

There were many criticisms of Bitcoin from Berkshire Hathaway’s annual shareholder’s meeting this year. Both Warren Buffet and Charlie Munger have been vocal critics of cryptos.

Crypto currencies will come to a bad ending. It draws in charlatans. It will come to a bad ending.
– Warren Buffet
I like cryptocurrencies a lot less than you [Buffet] do. To me, it’s just dementia. It’s like somebody else is trading turds and you decide you can’t be left out.
– Charlie Munger

Separately, Buffet and Musk have been disagreeing about the value of economic ‘moats’. Moats are a term coined by Buffet that describes how well a company can protect itself from the competition.

On a Tesla conference call, Musk called moats “boring” saying that in order survive companies needed to innovate in technology. In response, Buffet said at the Berkshire annual meeting “I don’t think he’d want to take us on in candy”, referring to See’s Candy, a Berkshire company.

Which prompted the following series of tweets from Musk;

It’s not clear if Musk is serious, but using cryptos to sell candy would be the perfect way to prove his point that technology can destroy moats quicker than ever before.

📰 Extra Reading

5 Years ago, Wired magazine called Bitcoin an abstraction, destroyed their wallet keys and now can’t access $120k worth of Bitcoin

 If you follow tech news you definitely know what Wired is so I won’t get into that. For a long time, Wired is a great… by proofmaster

24 Lessons I Learned from Interviewing Over 45 Cryptocurrency Projects in Two Months

 Like most of the people who got into the blockchain space in 2017 we all had to wade through a sea of BS, incomplete information, and a whole lot of market fluctuations. About three months ago, we…

QUOINE Launches ICO Platform

 TOKYO, May 6, 2018 /PRNewswire/ — QUOINE launches groundbreaking ICO platform on QRYPTOS.

Huawei adds BTC.com cryptocurrency wallet to AppGallery app store

 Huawei has teamed up with BTC.com to add the latter’s bitcoin wallet to its new AppGallery.

New York Stock Exchange to Start Bitcoin Exchange

 Following Goldman Sachs’s moves to begin trading Bitcoin, the New York Stock Exchange’s parent company is said to be in talks to open a virtual currency exchange.

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