Today we’re getting super political, so Karim is all excited. Don’t worry, we’re talking about it being related to Crypto. The House had a hearing and we break down some opinions of some people in Congress. We also go on to talk about a couple of scams from across the globe. It’s Flagship Friday-ish on the CryptoBasic Podcast.
Rapid Fire
All Kinds of US Policiking about Libra.
This was 7 hours long.
Warren Davidson said - There's bitcoin and there's shitcoin. (R) Unclear stances
(Market Cycles)500
Simplified market cycle - peak,trough, contraction, expansion
(Tether’s $5 Billion Error Exposes Crypto Market’s Fragility)
Thats a scam!
For $15k You Can Fake Trading Volume
A 20 year old at Moscow State University, Andrey Andryunin, (Let's go MSU!!)
talks about his company that he co-founded called Gotbit. It inflates trading volume on obscure crypto exchanges for a fee to ultimately get listed on Coin Market Cap. Programs a bot to trade tokens back and forth with each other (what do we call that Karim??) wash trading.
Exchanges know about it but don't care too much to stop it.
Hotbit based in Shanghai and BitForex out of Hong Kong are two exchanges that Gotbit uses. Gotbit was found to be one of 14 exchanges that basically had zero genuine trading outside of wash trading in a report by Alameda Research, a crypto trading firm.
A lot of the coins are top 300-500 market cap trying to appease their investors, maybe make an exit eventually, but ultimately only 2 or 3 of the 30 or so Gotbit clients have a working business model and have reached the point of building an actual product.
Adryunin does go on to say that this isn't exactly an ethical business and that if this was on NASDAQ he knows it would be a financial crime. Both him and his cofounder understand there is incoming regulation from the Financial Action Task Force which will regulate crypto related services and exchanges so they are pivoting to other more legitimate things like offering IEOs