What Saves the Instability of Crypto?

What saves the instability of crypto space? That is Rchain, a blockchain architecture which is born to salvage the instability situation. The developer built up a constructional design in 2016 that can take more advantages of other existing designs via its ability to keep secure, catch up with the speed and restrain scalability. In this way, it turns out to be the blockchain that can deal with tens of thousands of transactions per second.

Rchain (RHOC) establishes a decentralized, economical and applicable public computing infrastructure and blockchain for investigation. It can build a variety of completely scalable decentralized applications through smart contract, which will be trustworthy. The platform architecture offers a high-level blueprint of the Rchain decentralized, economically sustainable public compute infrastructure. It is formed after a branch of mathematics whose goal is to maximize the extension of the platform. It can support various blockchains both in public and private. The multi-chain construction allows other blockchains to run in the way of coordination and parallelism. With the development of the platform, nodes can manage the load only when it initialize RhoVM, which enable it to get linear expansion as well as maintain the performance while the consistency and code complexity do not vary.

According to Rchain charts from citicoins, its price to USD was growing until Jan 2018. It then has fluctuated ups and downs. But this dosen’t mean that it loses stability. The Rchain platform can create community atmosphere that everyone is able to influence its future.


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Blockchain redefined cross-border remittances as it only takes 3 seconds from HK to the Philippines

When it comes to cross-border remittance or payments, we must first think of Ripple, of which the cross-boarder remittance based on cryptocurrency-xrp. With its characteristics of “fast, low cost, and reliable technology”, ripple has achieved very good results in the financial industry, especially cross-border payment. But the financial industry is a big and spectacular pie. It can't be swallowed by ripple. So except ripple, there are many other blockchain technologies that are coveting this pie, such as the Ant Financial which is not based on cryptocurrency and we are talking about today.

On June 25th, the world’s first blockchain-based e-wallet cross-border remittance service was launched in Hong Kong. Users of Hong Kong version of Alipay- AlipayHK can transfer funds to Philippine wallet Gcash via blockchain technology. This means that the application scene of the blockchain ushered in new breakthroughs.

The first remittance was completed by Grace, a Filipino who worked in Hong Kong for 22 years. It took only 3 seconds and it used to take 10 minutes to several days.

With the support of blockchain technology, cross-border remittances can now be handled in the same way as local transfers, arrive in real time, save money, save trouble, and be safe and transparent. This is another innovation and exploration of Ant Financial in the blockchain application scene after public donation, food traceability, and rental management.

There are many shortcomings in the traditional cross-border remittance business: due to more involved organizations, laws, regulations, and exchange rates, the process of remitting is very complicated, and it usually takes 10 minutes to several days to arrive. If you remit after 7 PM, it won’t arrive until the next day at the soonest. If you go to the counter for remittances, you must pay attention to the time of work. It will take longer to return the money if there are something wrong and you may even lose it.

In order to solve these problems, Alipay HK and the e-wallet GCash in the Philippines are looking for ways until they meet the block chain team of Ant Financial. In 2017, Ant Financial was the world's largest patent company applying for blockchain, and it has been continuously exploring the boundaries of blockchain applications.

According to reports, banks had previously achieved cross-border remittances within the internal blockchain, but did not cross organizations, and the transfer between users and banks was still a traditional model; There are also cross-border remittances based on cryptocurrencies, but because the supply and demand of currencies and currency values may fluctuate rapidly in a short period of time, it is difficult to make large-scale commercial use.

However, this time, AlipayHK collaborated with Gcash to become the world’s first e-wallet to use the blockchain across the entire cross-border remittance chain, and Standard Chartered Bank is responsible for day-end fund settlement and foreign currency exchange. Gcash users can consume immediately upon arrival. Cross-border remittances can also be credited in real time as if they were domestic transfers. The 7×24-hour uninterrupted, cost-effective, safe and transparent way can be described as redefining “cross-border remittances”.

From Hong Kong to the Philippines, blockchain cross-border remittances take the first step, and in the future it will be possible to benefit more users in countries and regions. All in all, there are infinite possibilities in the field of blockchain finance. At present, there are hundreds of flowers in bloom. In the development process, we predict that this area will become the beginning of large-scale application of blockchain, and will also have a group of representative blockchain companies.

What makes Bitcoin and Ethereum prices go up and down?

Bet you have bombarded by the front page reporting about recent fluctuation in the Bitcoin price and the stunning price move of the whole market. Whereas what I want to mentioned here is being highly-volatile is in crypto-industry’s nature.

Maybe I can answer this question from a broader perspective, that is, what makes the price of cryptocurrency go up and down.

1.Manipulation or speculative activity

In May,2018, the price of Bitcoin headed down to a lower price range, down from $8000, then the trend lasted for nearly a month: Bitcoin continues to fall to lower than $7000 and now lingers around $6500( (data from citicoins.com）, close to the cost to mine a Bitcoin, which is $6000.It actually begins to bounce back a little.


Then on last Wednesday, according to NewYork times a paper released by John Griffin, an expert on spotting financial fraud, showed that nearly half of the rise of Bitcoin are artificially manipulated: players use another tokens, called Tether to buy or sell Bitcoin to control the price move. So did Ether or Zcash.

2.Scandals on the currency

About ten years before, Bitcoin and Blockchain technology came out as the system that avoid hacking or money manipulation. However, it seems that things don’t work the way like they want. Days before, a cryptocurrency exchange suffers hacking and $31 Million was stolen. That’s always been a problem with the cryptocurrency market, and every time scandals come out, a sudden slump is soon showed on the price chart.It somehow decreases people’s confidence to the tokens.

What’s more, it’s said that it’s not cryptocurrency that collapse after launch now, but exchanges. It may be difficult for people to credit with their coins are safely kept within such trend. Therefore, they may withdraw their money from cryptocurrency or sell out, which could definitely cause change in price move.

3.Supply and demand
The Bitcoin is born to be deflated. It gradually head down to deflation when the difficulty and cost to produce a Bitcoin is increasing. In today’s crypto-market,less Bitcoins are to be mined and more Bitcoins are concentrated among big players, thus less coins are in circulation, in the words, the supply is scare whereas the demand is ample. Therefore, the valuation of Bitcoin skyrockets in the short term.

4.Regulation or tolerance
Although the whole crytocurrency system is created to delegate governments’ and traditional institutions which tends to be monopolic and dominated in most of the fields, the latter still pose strong influence on the former one. It means the attitudes of the government in one country decides, to some extend, the future of the system. Even a little touch from the government can caused slump in the market, let alone crackdown. However, power from government’s or institution is not necessarily bad, it can also provide a relatively favourable circumstance to the industry. Then the price move may shows signs of strong momentum.
To sum up, what make Bitcoin or other coins so volatile in their prices? Manipulation, regulation, deflation nature and management.

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Does Tether finally get rid of the controversy over the dollar reserves?

After nearly six months of tearing off with the auditors, Tether cryptocurrency finally published a third-party report, Transparency Update, which claimed that the tether (usdt) was fully supported by the US dollar and made some additional detailed explanations.

For several months, Tether’s dollar reserves have been controversial. Critics on the Internet claimed that the company issued more tokens than its dollar reserves at the bank — an act that is essentially printing money. Tether has always denied this, but there is no conclusive evidence that it was issued at 1:1. until last Wednesday, a large three-party report was published to update its transparency.

However, this report may not allow this controversy to settle, because its disclaimer is too long, but the substance is very limited, there are three main doubts:

1.The report is not an audit
The report was written by a law firm called Freeh Sporkin & Sullivan, LLP (FSS). This is clearly not an accounting firm, so this report is not an audit.

Tether’s general counsel, Stu Hoegner, stated that “the obstacles to auditing are too great. These barriers include the need for auditors to seriously comprehend the emerging industry knowledge; accounting standards before the appearance of cryptocurrencies, and uncertainty about the application of the rules and so on. Since these obstacles cannot be overcome at all. So we chose FSS Law Firm to do it.”

Hoegner said that although FSS employs a different procedure than auditors, he believes that “its key conclusions are almost the same as those produced by the audit”—a snapshot of bank balances at a certain moment.

2.The information of the report only covers a limited time
This report covers only the time of June 1st. The law firm said that it "fully believes" that Tether had more deposits in the bank than the circulating USDT tokens on that day (specifically, the two independent institutions held a stock of 2.55 billion U.S. dollars，which is more than USDT's circulation value- 2.54 billion U.S. dollars).

However, this report does not state the level of mortgage before or after any date. In other words, it does not indicate that the USDT has always been safe, or it is now fully endorsed by the US dollar.


3.The inspection procedure performed by FSS does not provide any guarantee
The law firm emphasized that the confirmation documents it made should not be mistaken for audit results and should not be conducted in accordance with generally accepted auditing or accounting standards.

The law firm emphasized that the confirmation documents it made should not be mistaken for audit results and should not be conducted in accordance with generally accepted auditing or accounting standards. It did not make any statement about the adequacy of the information provided to the FSS, and pointed out that this information came from Tether and its bankers.

As mentioned above, even if the information is assumed to be correct, it is only responsible for the balance of the day. The firm stated in the report:"The FSS did not implement any procedures or draw any conclusions on the activities before or after the completion of the business on June 1, 2018."

In fact, the report of a law firm is unlikely to be as weighty as an audit firm's report, not only because their skills are significantly different. This is because, at least according to U.S. law, auditing companies usually not only have to be accountable to customers, but also to third parties. The decisions of these third parties depend on their integrity.

Michael K. Shaub, a professor of accounting at the Texas A&M University’s Mays Business School at Texas A&M University, said: “Compared with lawyers, auditors have greater responsibility for the reports they publish"

In this case, usdt tether has not become completely transparent due to this report. Tether's choice of a law firm to update its transparency proves nothing. If tether is responsible for the entire cryptocurrency market and all investors, it must be audited by an authoritative organization.

2018 World Cup Game-Blockchian Lottery Failed

As early as May 13th, there were investors in the waykichain community bluntly: waykichain has prepared so long, but fell in front of the World Cup.

In December 2017, Waykichain issued it’s token -WICC, and the issue price is 2 yuan.

The issue price of the WICC issued in December 2017 was RMB 2. With the selling point of sports lottery, WICC price reached RMB 17 ( the highest peak) on May 6. The team of waykichain has done a lot of work, but in the past 46 days, the market value of waykichain has shrunk by 75%, which goes against the fiery market.

According to common sense, during the World Cup, anything related to the World Cup will be popular, but only WICC, the world up-themed blockchain not. And even worse, wicc price collapsed during the World Cup. Why did this happen?

1.Token lottery is completely invalid at the present stage
Why I’m saying that? I’ll explain it with a simple example. You purchased 13 WICCs (RMB100) on June 12 and put the WICCs into sports lottery. After several successful lottery, the number of WICCs has won 26 on June 19, your WICC yield, the profit reached 100%. However, wicc price fell from RMB7.8 on June 12 to RMB4.7 on June 19. You only get RMB122 if you exchange WICC to RMB.

Although the lottery won, the earnings lost. This means that when you use Token for lottery, you are participating in two lottery games at the same time. The discrepancy of RMB 80 is the way that token value floats, and it evaporated in the "Casino" of the currency market.

No one is willing to pay for a more uncertain casino when the game is full of uncertainties. So no one would use Token to gamble until the Token price is stable for a long time, that’s why wicc market is not so good as we expected.

2.Exaggerated and wrong promotion
In the waykichain’s website, wicc’s positioning is a public-chain system that can provide all game developers and companies worldwide with lottery games, asset transactions, and foreign exchange transactions. It has also been launched to support football lottery, basketball lottery, and events.

As a blockchain product that focuses on sports lottery, the promotion of the waykichain does not start from the sports community. Instead, it devotes more energy to the renewal of currency players through the exchange.

After the ICO, waykichain has conducted more than a dozen events for various marketing campaigns within six months and keen on all kinds of simple and crude but mentalistic promotion methods. For example, hired the African children dressed in festive clothes, holding a small blackboard, followed by the photographer to read "Bitcoin changed the firecoin, waykichain changed the lottery."

Before the start of the World Cup, Waykichain began to aggressively promote news related to World Cup betting, such as announcing the signing of Ronaldo as the global ambassador for Waykichain. However, on Ronaldo's twitter, we did not see any information related to the waykichain. And on the waykichain's official microblog, the information about signing Ronaldo has also been deleted.

3.Limited development time
Like other ICO projects that rushed to go line at the beginning of this year, to issue it’s tokens, waykichain must find a new concept, otherwise it would lose hot spots in the market where a large number of new coins went online and could not obtain investors.

But the sports lottery concept didn’t leave enough time for the development time of the waykichain team, only 6 months away from the biggest hot world cup. Although Waykichain has developed a decent and exciting sports APP in this 6 months, users can gamble on their APP, but the gambling chips cannot be traded and withdrawn, so that the waykichain APP becomes less valuable.

Except for waykichain, SOC, DPY, BOT and other lottery theme projects, all these currencies have seen a decline of more than 60% (compared to the highest historical price).

Centralized, insecure, opaque, and other shortcomings of traditional gambling seem to be resolved in the blockchain, but in the end it did not move in the direction that everyone expected. No one thought that the project that flaunted blockchain football lottery fell into the biggest spot of the World Cup.