Why Social Media Platforms Should Be

Turning to the Blockchain

While Facebook and Twitter are banning all crypto-related marketing from their platforms, a new
breed of blockchain-based social media sites is growing. Amazingly, these platforms are gaining
popularity at an explosive rate, with some managing to raise hundreds of millions of dollars for
launching.

Some of the social media platforms turning to blockchain technology have done well in the
mainstream and are now seeking innovative ways to improve users' experience. A good example
is Telegram , a cloud-based messaging app with over 200 million active monthly users and around
700,000 more signing up daily.
According to Bloomberg Technology , the Russia-based social media company managed to
fundraise over $1.7 billion in token sales between February and March of this year. The company
plans to use the proceeds to develop what it calls the "Telegram Open Network" (TON) powered by
its cryptocurrency known as "GRAM."

One of the main reasons social media platforms are pivoting to blockchains appears to be the
mounting urgency for privacy and data security, the threat of which is still fresh in everybody's
minds, thus creating an opportunity for innovation and change. Traditionally, social media platforms
harvest personal data from users for targeted marketing campaigns in exchange for free services.
In many cases, it seems clear to the public that their data is misused, exposing them to harm.

A good example of this is the recent incident in which Facebook allowed the political consulting
firm, Cambridge Analytica, to harvest private data and use it for psychological profiling. According
toBusiness Insider , the firm used an application developed by University of Cambridge academic
Aleksandr Kogan to access Facebook users' private messages for sentiment analysis.

To avoid such incidents, forward-thinking social media sites are shifting from the centralized ad-
based models to blockchain-powered ecosystems. In the blockchain-based social media model,
users will have full control of their data and will be able to choose whether or not to share that data
and with whom.
New York Attorney General Launches Inquiry
Into Cryptocurrency Exchanges

As part of an effort to protect cryptocurrency investors and bring greater transparency into how
cryptocurrency exchanges operate, New York Attorney General Eric Schneiderman has sent letters
to 13 virtual currency exchanges requesting they disclose key information about their operations.

"With cryptocurrency on the rise, consumers in New York and across the country have a right to
transparency and accountability when they invest their money," the attorney general said in
a statementtoday, April 16, 2018. "Yet too often, consumers don't have the basic facts they need to
assess the fairness, integrity and security of these trading platforms."
The letter was part of a "Virtual Markets Integrity Initiative" launched by Schneiderman to shine a
light on the policies and practices of platforms used by consumers to trade virtual currencies and
initial coin offering ( ICO ) tokens.
Tough Times Ahead

In the U.S., cryptocurrency regulation is becoming a tough web to untangle for companies trying to
do business in the space. Not only do cryptocurrency businesses and virtual exchanges have to
deal with federal regulators like the Securities and Exchange Commission, Financial Crimes
Enforcement Network and the Commodity Futures Trading Commission, but they also have to
contend with regulators in each of the 50 states.

Stephen Palley, a lawyer in Washington D.C., known for his work in the crypto space, says he is
not surprised to learn of the New York attorney general's initiative. At the same time, he views it as
a grim sign of what is to come. "This is just the start. There will be a major onslaught. It will shut
down or shut out a bunch of exchanges from the U.S.," he told Bitcoin Magazine .
In a tweet , Palley referred to Schneiderman as an "activist" and noted,"Being in his crosshairs isn't
a great thing."
Bitcoin May Be Running Out of Steam

Be sure to check out our Bitcoin Trading Guide if you're new to cryptocurrencies !

Bitcoin: Retail trader data shows 72.7% of traders are net-long with the ratio of traders long to short
at 2.66 to 1. The number of traders net-long is 0.7% lower than yesterday and 2.1% lower from last
week, while the number of traders net-short is 0.8% lower than yesterday and 1.4% higher from
last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests
Bitcoin prices may continue to fall. Positioning is more net-long than yesterday but less net-long
from last week. The combination of current sentiment and recent changes gives us a further mixed
Bitcoin trading bias.

--- Written by Dylan Jusino, DailyFX Research

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency
markets.
Learn forex trading with a free practice account and trading charts from IG
Coinbase Buys Earn.com, Gaining Top Talent
in the Process

Cryptocurrency exchange Coinbase is buying Earn.com, a social network that allows users to earn
digital currency by replying to emails and completing small tasks online.

Coinbase CEO Brian Armstrong made the announcement in a blog post today, April 16, 2018. In
addition to welcoming the entire Earn.com team, Coinbase has made Earn.com co-founder and
CEOBalaji Srinivasan its first CTO. Both companies are located in the Bay Area.
This is Coinbase's fifth acquisition so far and its most substantial to date. Only last week, the
exchange purchased decentralized app browser and Ethereum wallet Cipher Browser . Coinbase
has not revealed how much it paid for Earn.com, but to offer an idea of the company's evaluation,
Earn.com has raised more than $120 million in a series of funding rounds.

21 Inc
Earn.com began life as 21 Inc, a startup best known for creating the 21 Bitcoin Computer ,
essentially, a Raspberry Pi connected to a bitcoin-mining ASIC, with the idea of building bitcoin
miners into devices people already use. The computer first began shipping in November 2015.
In October 2017, 21 Inc rebranded itself as Earn.com and notified customers it was ending support
for its Bitcoin Computer to focus on allowing users to monetize their email and social media
channels instead.
Currently, Earn.com pays users in bitcoin, but the company has also developed its own Ethereum-
based ERC20 token, dubbed the "Earnable Token," so that when people complete tasks in
Earn.com, they can earn rewards in tokens. The company stated before , there will be no initial
coin offering. Users earn tokens for simply signing up on the platform.
Coinbase does not support ERC20 tokens yet, but last month, the exchange announced plans to
addsupport for ERC20 technical standards to all its trading platforms. Earlier this month, Coinbase
also entered into talks with the U.S. Securities and Exchange Commission to become an
alternative trading system (ATS), which would enable it to trade security tokens.
Talent

Aside from all that, Coinbase acquired Earn.com for its talent. Srinivasan himself comes with an
impressive skill set. Prior to serving as the CEO at Earn.com, he was general partner at venture
capital firm Andreessen Horowitz, where he still sits on the board. He has a B.S., M.S., and Ph.D.
in electrical engineering and an M.S. in chemical engineering at Stanford University.
In a blog post , Srinivasan details how he took over the gasping 21 Inc in May 2015 and turned it
around from a company that was more than $80 million under water to what it is today, "a fast-
growing, cash-flow positive business with a multimillion dollar revenue run rate," he said.
The plan is to take Earn.com and " scale it up across Coinbase's massive user base," Srinivasan
said. Although the new Coinbase CTO was equally tight-lipped on how much Coinbase paid for
Earn.com, he added, "And with this deal, the total value of cash, cryptocurrency and equity
returned to our shareholders is now in excess of the capital invested in the company."
What Is Ether?

Ether is the underlying token powering the Ethereum blockchain, but it serves a slightly different
purpose than bitcoin does to the Bitcoin blockchain. Although ether is traded on public markets and
has displayed price appreciation similar to bitcoin, they are quite different by design. Ether is not
intended to be a unit of currency on a peer-to-peer payment network; rather, it acts as the "fuel" or
"gas" that powers the Ethereum network.

At the highest level, Ethereum is an open-source platform that runs smart contracts. When smart
contracts are run on a blockchain, they become self-executing when certain conditions are met.
The execution of smart contracts requires computational resources that must be paid for in some
way: this is where ether comes in.

Ether is the crypto-fuel allowing smart contracts to run. It provides the incentive for nodes to
validate blocks on the Ethereum blockchain, which contains the smart contract code. Every time a
block is validated, 5 ethers are created and awarded to the successful node. A new block is
propagated roughly every 15-17 seconds. Some nodes may find the correct solution to a block
without having it included in the network. The Ethereum network rewards these nodes with 2-3
ethers.
Is Ether Inflationary?

The total supply of ether is not capped like the total supply of bitcoin. 60 million ether were created
during the initial crowdsale, 12 million of which went to early backers and the Ethereum
Foundation. Most of the money raised will be used to fund future development initiatives.

Ether's issuance model is unique in that it does not emphasize deflation like most other popular
cryptographic assets. Initially, issuance of ether was capped at 18 million per year, which is 25
percent of the initial supply raised in the crowdsale. But more recently, Vitalik Buterin said that
issuance levels will be contingent on security rather than a predetermined schedule. Although this
rate is fixed each year, the monetary inflation rate actually decreases every year, making ether a
disinflationary currency. Disinflation occurs when the rate of inflation shrinks over time.

Ether is expected to be lost each year because some users may forget their private keys, some
may pass away without transmitting their private keys, and some may send ether to an address
without a corresponding private key. As the network grows, it is expected that the annual rate of
ether lost will equal the annual issuance rate. The hope is that ether will be deflationary in 2140,
around the same time that Bitcoin ceases issuing new coins. For an in-depth analysis of
Ethereum's issuance model, read Joseph Lubin's piece .

These calculations are not set in stone. Ethereum is expected to switch its consensus algorithm
from proof of work to proof of stake, which in theory is supposed to be more efficient and require a
smaller mining reward. This change has produced some uncertainty within the ecosystem. The
Ethereum Foundation is currently researching potential monetary effects and claims that all
changes to the network will be handled by smart contracts, as opposed to individuals who may
have ulterior motives.
Bitcoin Magazine’s Week in Review: Startups
Are Making Progress

Golem has lumbered in from the wilderness now with its first beta release, the Brass Golem,
bringing the notion of Airbnb for computers to life on Ethereum. Also in Ethereum news, Ether
Capital seeks to be a steadying and calming force in the Ethereum technology and ICO space.

Samsung has now confirmed that it is manufacturing ASIC chips for Halong Mining, while the
ASIC-resistant hashing algorithm that is part of Ravencoin has peeked its head above the clouds
with a new white paper and detailed roadmap.

In regulatory news, the EU has formally launched blockchain initiatives with 22 member countries
joined in cooperation to develop education and regulation for the industry.

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industry.Subscribe to our newsletter here .
Golem, the "Airbnb for Computers," Launches on Ethereum Mainnet in Beta

On November 11, 2016, Golem raised 820,000 ether - worth $8 million at the time - in 29 minutes.
Golem was one of Ethereum's earliest ICOs, and this week their beta, known as Brass Golem,
went live on the Ethereum mainnet.

Initially advertised as an "Airbnb for computers," the Golem idea is to create a global market for
your idle computing power. You can rent out your unused computing power and be paid for it in
cryptocurrency. Ultimately, the goal for Golem is to make just about anything that requires heavy
computer lifting, such as CGI rendering, scientific calculation, machine learning and more - both
affordable and accessible.
Samsung Is Building ASIC Chips for Halong Mining

It's now confirmed that Samsung has been producing high-capacity memory chips for GPUs for
years. The company has now confirmed that it is providing ASIC chips to mine bitcoin, ether and
assorted cryptocurrencies for hardware manufacturer Halong Mining. Its partnership with Halong is
expected to bring heavy competition to the ASIC industry, primarily to China's Bitmain, which, up to
this point, has largely dominated the chip-development arena.
Cryptocurrency Project Ravencoin Gets Back to P2P Asset Transfer Basics

Officially launched at the beginning of 2018, Ravencoin (RVN) has a stated aim "to implement a
use-case-specific blockchain, designed to efficiently handle one specific function: the transfer of
assets from one party to another."

According to founder Tron Black, RVN bears several resemblances to Bitcoin, with many of its
advantages being extended to assets. In the future, he says Ravencoin will also bear features
similar to Ethereum's ERC20 and ERC721 contracts. The company's road map shows that they
are on Phase 2 of 6, but no dates are associated with deliverables.

Taking Ether Public: An Interview with Ether Capital CEO Michael Conn
Ether Capital is positioning itself to be the first Ethereum-focused publicly traded company. Having
already raised $45 million through a private placement, the Toronto-based firm is now close to
finalizing the reverse takeover (RTO) of a Vancouver shell company by mid-April.
"We want to create accretive value by building a true business, rather than acting as a venture
capital firm that makes 10-15 investments and is pleased if two or three appreciate in value," said
CEO Michael Conn in an interview with Bitcoin Magazine . "We are really looking to be a
meaningful alternative to both ICOs and venture capital. We are not precluding ourselves from
collaborating with VCs or private investors in any of our investments, but ultimately [we] need to
see how a business fits in to our broader vision of interoperability."
22 European Nations Come Together with Blockchain Partnership
The European Union has been active this year in exploring blockchain technology and assessing
potential regulation and growth. On April 10, 2018, 22 European countries joined forces to
cooperate on blockchain regulation and education. The European Blockchain Partnership "will be a
vehicle for cooperation amongst Member States to exchange experience and expertise in technical
and regulatory fields and prepare for the launch of EU-wide blockchain applications across the
Digital Single Market for the benefit of the public and private sectors," states the European
Commission press release.
$3.5 Million in Bitcoin Missing From India’s
Coinsecure Exchange
In what may be the biggest virtual currency exchange heist in India to date, 438 bitcoin (BTC),
currently worth $3.5 million, have gone missing from Coinsecure, and the exchange thinks an
employee has run off with the money.

In a statement posted on the exchange's website on April 12, 2018, Coinsecure said the exchange
was not hacked, but that bitcoin disappeared when bitcoin gold ( BTG ), a "coin" resulting from a
split in the Bitcoin blockchain, was being extracted to distribute to Coinsecure customers.

Bitcoin are kept securely in a wallet, the firm said, and only two people, the company CSO and
CEO, have access to the private keys.

"Our Bitcoin funds have been exposed and seemed to have been siphoned out to an address that
is outside our control," the Delhi-based exchange said.

According to a first information report (FIR) filed with the police by Mohit Kalra, CEO at Coinsecure
and director at the exchange's parent company Secure Bitcoin Traders Pvt, on April 9, 2018,
Coinsecure CSO Amitabh Saxena reported that the funds were missing from the wallet due to an
"attack." Coinsecure thinks Saxena actually took the money for himself.

"As the private keys are kept with Dr. Amitabh Saxena, we feel that he is making a false story to
divert our attention and he might have a role to play in the entire incident," the report said. It added
that since Saxena has an Indian passport, "his passport should be seized so he cannot fly out of
the country."

According to a news report in the Economic Times of India , police have since seized the
company's servers to investigate the extent of the system breach. They are checking to see if more
wallets have been compromised and are calling in the company's senior security officials for
questioning.

Meanwhile, Coinsecure is attempting to reassure its customers, stating that they will be paid back
through the exchange's personal funds.

The person who took the funds may have trouble converting them to fiat inside the country. Last
week, the Reserve Bank of India (RBI) banned banks and other regulated financial entities from
dealing with digital currencies.