Welcome to this week’s market report. It’s been another interesting week and we have plenty to write about. We start by having our usual look at the current market capitalizations. Since the last market report NXT has decreased in price by 6.5%. Additionally the trading volume, according to coinmarketcap, has been on a downtrend – it reached its high at about USD 100’000 (21 August) before shrinking to a daily average of about USD 40’000 during the last few days. The sharp fall in trading volume is explained by Bter’s hack last week as a result of which traders don’t trust Bter anymore and have either switched to a different exchange or to the Multigateway (which has experienced a considerable uptake in its use as a result of the hack). Moreover, Bter announced it would be charging a fee of 3% on all NXT withdrawals, which is understandable since Bter is still missing 4.5m NXT. There’s more detail regarding this story below.
UPDATE: Hack of Bter’s main account
A week ago Bter was still missing 8.3m NXT and even though it was an internal fault of the exchange, the NXT community nevertheless assisted Bter in any way it could, see this thread to read the whole discussion. Initially, as mentioned above, Bter announced an increased NXT withdrawal fee of 3%. This increase was intended not only to fill the 8.3m NXT hole but also to prevent a bank run! A number of different whales (users with a big stake in NXT) came up with proposals to smoothly restore the ‘old’ Bter, as a result of which the following agreement has been made: Bter is to provide a year of free NXT trading on its exchange in return for a loan of 2m NXT, enabling Bter to reduce the withdrawal fee to a more reasonable 1%, albeit this is still double the old rate.
In another major development, Dom P, a well-known member at nxtforum.org, started a hunt for Bter’s hacker, which has already been successful: another chunk of the missing money has been recovered, some 3.8m NXT! Good news undoubtedly but this incident has clearly shown the downsides of centralized exchanges and the advantages in trading instead with the Multigateway.
Teleport: A new attempt to achieve privacy
Teleport is one of the many projects jl777 is working on. The goal is to make transactions off the blockchain so nobody is able to identify the user behind it. There are already different approaches by competitors like Darkcoin or Monero but jl777’s Teleport is a completely new one. Here’s how jl777 explains it:
Teleport is a different approach to privacy that seeks to use one of the very features of cryptocurrency networks that limit anonymity under normal circumstances: transaction linkage. Teleport occurs off the blockchain but is verified using the blockchain, utilising the benefits of a public record without suffering its drawbacks.
Teleport uses ‘telepods’ – packages of information containing everything required to make a transaction – to transfer funds securely and outside of the blockchain to the intended recipient.
jl777 is also core developer of BitcoinDark, with which he aims to make Teleport a reality. He explains it thus:
“Nxt Inside” is something I am reaching out to other coins to do. Each new coin with Nxt Inside is a totally new community that instantly becomes NXT users. Their coin gets the advantage of all the NXT 2.0 features, NXT gets more nodes and users for AE, Marketplace, InstantDEX, etc. The first step is to get the coin traded in MGW, then there is a direct reason for them to want reskinned NXT GUI. Maybe they strip out everything but the AE for their coin, or maybe they keep all of NXT. Doesn’t matter, it is all good as NXT is helping them by being a platform.
Now people are hesitant to be the first, so I make BTCD do this as example and then other coins will copy, especially if BTCD does well.
Advertised as “Nxt inside” jl777 aims to create a network of different coins using NXT as platform. This is huge since NXT will get lots of new users as well as publicity (also have a look at BitcoinDark’s price chart). Teleport is included in jl777’s asset NXTprivacy, something to consider investing in if you would like to be part of this story.
What’s going on in the Asset Exchange?
InstantDEX: InstantDEX is an asset managed by – who could it be? – jl777. The primary aim of InstantDEX is to offer realtime trading of NXT as well as Instant Transactions. In addition, InstantDEX will be a piece of the puzzle for Teleport, which is no doubt why it has experienced a doubling in price over the last week.
Nxttycoin: This coin is the official crypto currency of the Nxt Mobile Applications Company (NMAC), click this link to have a look at the announcement thread. The holders of Nxttycoins are understood to be the owners of NMAC. Nxttycoin is already listed on coinmarketcap and has an amazingly big community for an application which has not even launched yet (Facebook, Twitter). Over the last few weeks Nxttycoin’s value has increased by over 100%! As a bonus Nxttycoin has a reward program: on the last day of each month you receive an amount equalling 5% of your current holdings (Example: You hold 100’000 Nxttycoins. On the 31st of August you receive a reward of 5’000 Nxttycoins). The official launch date of the app is the 26 August 2014.
That’s it for the NXT market report this week; hope you enjoyed it!
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