Social media has become a major factor in modern society. What is the relation between them and the cryptocurrency world?
In 2018, this topic became popular due to the announcement of Facebook‘s own stablecoin, Libra, causing a lot of controversies. However, the relation between cryptocurrencies and social media goes beyond Zuckerberg’s approach to the fintech world.
Facebook: the great unknown
We have written enough about Libra on BlockChain24.co since the announcement of this cryptocurrency in the middle of 2018. And even if Facebook’s recent approach to cryptocurrency is most often reviewed in this context, the story of their relationship is a bit older. Before Libra, the social media giant wasn’t favorable to decentralized assets. And in fact, it still isn’t.
Along with the development of the cryptocurrency industry and the growing popularity of Bitcoin, many new entrepreneurs became eager to try their hand in that field. Some of them were honest developers, while others tried to use the new trend to gather money through initial coin offerings (ICO). Facebook apparently didn’t want to have anything to do with such initiatives, so it strictly banned any form of advertisement related to cryptocurrencies.
This gave Zuckerberg the reputation of being a crypto opponent who fights with the ongoing blockchain revolution. Now, this opinion is a bit forgotten due to his efforts to release Libra. The advertising ban, however, is still in force. Is it effective? Looking at various crypto pyramid schemes organized through Facebook groups, or the mass of Bitcoin princes willing to offer amazing deals to innocent people – I rather doubt it.
Twitter: a place for crypto influencers
A completely different approach might be seen on Twitter, which is a commonly visited place for various crypto enthusiasts: from low tier crypto influencer to the CEO of the leading corporation. All of them use it to comment on current events, share the news, or communicate with each other. In contrast to Facebook, Twitter has no problem being a safe space for fans of decentralized money.
And no wonder, since the character of Twitter is quite different from Mark Zuckerberg’s platform. Rather than being a place of maintaining social connections and bonds, it is, from the very beginning, dedicated to business, economy, and policy. This makes it a natural platform for the cryptocurrency industry, and it is likely to stay that way.
It is also the only place where we can witness the discussion between various personalities from the crypto world. As in other industries, various entrepreneurs, influencers, and other “crypto celebrities” frequently get into a discussion. And sometimes, such interaction may even affect the market situation (just like it did when two Bitcoin whales had bet on Twitter).
Telegram: encrypted communication for encrypted technology
Another popular social media channel for the blockchain industry is the one closest to it in terms of technological aspects. Telegram is a messaging service providing encrypted communication. And even if the way the app does so is in some way criticized by cryptography experts, it still matches the nature of the cryptocurrency world.
Telegram allows creating thematic groups and channels for their users. They are, of course, very popular among cryptocurrency enthusiasts who are looking for a place to talk about the new events or share their opinions. However, the encrypted platform still falls behind the real leader in the field of online groups and forums.
Reddit: a voice of people
This platform, together with Bitcointalk and similar forums, has been a cradle of the crypto community since its very beginning. Reddit, in its very nature, is a place of free discussion, allowing users to create various subgroups (subreddits) for separate topics. At first, blockchain enthusiasts gathered in such a group strictly dedicated to Bitcoin.
But with the ongoing development of the crypto industry, various new cryptocurrencies have appeared. They were often associated with splits in a once consistent community. Divided groups find their place on Reddit, by founding related subreddits dedicated to separate projects. And to this day, this platform remains the one which is seen as the first step to create a community around a newly developed cryptocurrency.
Medium: communication for a corporation
This particular example is quite different from previous ones due to its nature. Rather than being an example of traditional social media, it is a social journalism platform, allowing various people to publish their content. While Twitter is a versatile channel of communication, Medium is mainly used as a blog service for corporations, enabling them to share news about their activity. It may be used for giving updates about new projects, informing about airdrops, or simply posting PR articles.
Such an outline fits perfectly into the world of crypto-related corporations. They find Medium as a flexible tool of communication, which helps them to create a consistent vision of professional companies specialized in the high tech sector. But this does not end with the use of Medium for cryptography – there are plenty of bloggers specialized in the topic of blockchain who are eager to publish on Medium
Honorable mentions: Linkedin and Instagram
The list is quite long already, and there are still some examples worth mentioning. The first one is LinkedIn – a commonly used social platform focused on business relations, which allows for creating a network of contacts. The popularity of the blockchain industry has also reached here. Various entrepreneurs are proud to enclose crypto-related experience in their bios, and the blockchain technology itself is the most popular hard skill on the platform.
The last example might be surprising. Instagram, although now being used to a somewhat limited extent for crypto promotion, has enormous, dormant potential for the industry. It’s not only because of the great influence which the platform has over young generations (especially millennials and gen Z, which are promising targets for cryptocurrencies). The real power of Instagram lies in the potential for developing trends and lifestyles. In the world ruled by feelings and emotions, it might be crucial for the blockchain technology to use this power.
Artykuł Social Media And Crypto: Friends Or Foes? pochodzi z serwisu Blockchain24.co | portal with cryptocurrency bitcoin & blockchain news.
Decentralized Ethereum Dapp Ocean Pauses Contract After Kucoin Hack
An ethereum dapp that describes itself as “the decentralized Ocean data sharing network” turns out to not be very decentralized. “On Sep 25/26, over $150M worth of tokens were stolen…
An ethereum dapp that describes itself as “the decentralized Ocean data sharing network” turns out to not be very decentralized.
“On Sep 25/26, over $150M worth of tokens were stolen from KuCoin exchange, and as part of the theft, over 21M Ocean, worth over $8.6M, were taken,” they say, further adding:
“Since yesterday, we have been working to find a solution and ongoingly consulting with KuCoin.
As a first action to protect Ocean token holders, we have paused the OCEAN contract. We will update the community with more information in the coming hours.”
The hot wallet of the Asian exchange Kucoin was hacked in still unclear circumstances. Following it, Tether froze some $20 million USDt residing in the hacker’s known address.
Online commentary wondered why the hackers had not shifted through Uniswap. That’s what they did, selling chunks of 10,000 Ocean tokens on Uniswap.
That reduced the price by about 10% even though it was just 200,000 tokens out of some 20 million. So the project has now taken the unprecedented step of just freezing the contract.
The problem is there’s significant liquidity in the Uniswap market, much of it from ordinary users, with it unclear what happens to them now as the token has been frozen.
Uniswap as you might know is all on the blockchain, so the hacker can exchange assets, but all can see what he is doing and where these assets are going.
Presumably however his aim for now is to not be frozen out rather than to cash out undetected.
He might try and turn these into eth which doesn’t have a backdoor like this Ocean contract, but still can freeze his address if the entire network upgrades.
Such freeze would just deny him the assets. It wouldn’t bring them back to the rightful owners. So this is more a case for competent authorities to follow this guy and catch him after he slips somewhere. Then the assets can be returned.
Kucoin is incorporated in Seychelles, but they’re a South Korean exchange with it unclear whether South Korea’s authorities have developed the capabilities.
If this was a European exchange, Europol would probably have taken over by now and you’d think would have wanted to show its worth.
In America there would be an alphabet of agencies which do generally have the capabilities, but by comparison South Korea is small with it unclear whether they’ve had the resources to have some of their boys specialize in this sort of thing. So they might need some help.
Bullish? On-Exchange Bitcoin Declines While Whales Accumulate (Report)
A recent report suggests that the amount of Bitcoin stored on exchanges is declining while BTC whales increase their holdings and that’s bullish for Bitcoin’s price.
The paper also highlighted that investors have a much larger time horizon for their holdings now compared to previous years.
Bitcoin Stored On Exchanges Drop
In its latest report shared with CryptoPotato on Bitcoin investors’ behavior, the popular research company Digital Delphi explored the number of bitcoins stored on cryptocurrency exchanges. The document indicated that if the BTC stock on platforms increases, it could put sell pressure.
However, this isn’t necessarily the case during bull runs, as retail investors often “leave BTC on exchanges and traders use BTC as margin collateral.” Alternatively, in case the asset price rises while the stock on exchange decreases, this typically implies an accumulation trend.
The report indicated that Bitcoin stored on exchanges marked an all-time high of 2.96 million in mid-February. Since then, the trend has reversed, and the number has dropped to below 2.6 million.
Digital Delphi argued that the reason behind this decrease of BTC on exchanges is because investors are most likely preparing for a longer-term holding period. More importantly, though, the paper highlighted a substantial decline in speculative trading interest in Bitcoin, while the HODLing mentality has increased.
“Unlike the 2019 price uptrend, which coincided with BTC stock increasing, this current trend has seen a divergence between BTC stock and price. This suggests a more sustainable move upwards for BTC, in comparison to that of 2019, as data indicates a holder base with longer time horizons.”
Bitcoin Whales Haven’t Slowed Down Accumulating
Digital Delphi’s data reaffirmed previous reports that Bitcoin whales, meaning addresses containing between 1,000 and 10,000 BTC, continue to accumulate large portions. The company outlined that whales have been on a shopping spree since the start of 2020, as their holdings have increased by 9% YTD.
Moreover, the US Federal Reserve’s actions to print extensive amounts of dollars since the start of the COVID-19 pandemic have accelerated whales’ accumulations.
“Since the USD M2 supply expansion in March, there has been a 7% increase in whale holdings.”
According to the document, this only emphasizes the narrative that Bitcoin serves as a hedge against dollar inflation, and “the smart money is clearly betting on this.” It’s worth noting that prominent US investor Paul Tudor Jones III purchased BTC earlier this year to protect himself against precisely the rising inflation.
US Crypto Tax Avoiders Beware: The IRS Updates 1040 Tax Form
The Internal Revenue Service (IRS) seems to have found a way to block crypto tax evasion, following an update of its tax form.
IRS: No Excuses for Crypto Traders
According to the Wall Street Journal on Friday (September 25, 2020), the IRS is planning to alter its 1040 tax form. The revised tax form will see cryptocurrency holders give a straight answer about their crypto activities.
The IRS has been relentlessly pursuing crypto investors to disclose transactions, as it suspects that many taxpayers were guilty of tax evasion. However, the tax administrator looks like it has found a way to make all Bitcoin holders accountable.
Presently, the tax form will mandate crypto traders to answer a” yes or no” to the following question:
“At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”
What makes the update interesting is the placement of the above question. Prior to the revised tax form, the question appeared in a section where taxpayers were not mandated to fill the answer. However, the question’s position in the altered tax form just below the taxpayer’s name and address leaves no room for excuses or oversight on the part of the crypto trader.
Reacting to the altered form of 1040 was Ed Zollars:
“This placement is unprecedented and will make it easier for the IRS to win cases against taxpayers who check ‘No’ when they should check ‘Yes”
There have been complaints in the past about the lack of a robust regulatory framework for crypto tax filings. In October 2019, the IRS published new tax guidelines that would supposedly make it easier for crypto investors to file taxes. The U.S. tax agency also sent reminder letters to crypto holders. Earlier in September, the IRS announced a payment of $625,000 to anyone who could crack Monero and Bitcoin’s lightning network.
Governments Keen on Crypto Taxation
While the IRS seems to have devised a means to trap crypto holders, more countries are introducing crypto tax laws and clamping down on offenders.
As reported by CryptoPotato in April, Spain’s tax administrator sent out notices to 66,000 crypto investors, as against the 14,000 notices sent in 2019. South Korea, on the other hand, has been unsteady about taxing cryptocurrency.
Earlier in 2020, South Korea’s Ministry of Finance and Strategy revealed that there were no intentions to tax crypto profits. However, reports emerged that the Ministry was considering imposing a 20% tax on profits from crypto trading. In June, the country’s Finance Minister called for the imposition of tax on cryptocurrency trading gains.
Australia’s tax agency, the Australian Taxation Office (ATO), sent out reminders to 350,000 crypto traders in March about their tax obligations. According to the ATO, crypto investors were to keep a comprehensive record of their trading activities for ease of tax payment.
Blockchain1 month ago
Market Wrap: Bitcoin’s Powell-Induced Price Swing; Ethereum Still High on Gas
Blockchain1 month ago
The US Post Office Files a Patent for a Blockchain-Based Voting System
Blockchain4 months ago
How to Identify the ‘Third Wave’ of Cannabis Investments
Blockchain3 weeks ago
Blockchain Bites: Is DeFi an Inside Deal?
Blockchain2 months ago
Wealthfront Lures Millenials With Crypto Memes and Tactics
Blockchain2 months ago
Top Five Most Advanced Cryptocurrencies
Blockchain4 months ago
5 Tips to Interest the Press in Your Cannabis Business
Blockchain3 months ago
Top 5 Most Effective Cannabis Marketing Strategies