n A constitutional appeal will be filed in South Korea over its ICO ban by a local blockchain startupn
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BCH/USD Price Analysis: Bitcoin Cash Wars Force Giga Watt to File for Bankruptcy
Earlier, Jihan Wu had warned that re-deploying hash rate from Bitcoin network to support Bitcoin Cash ABC could lead to a massive sell off across the market more so in BTC. We are already seeing that print and as BCH/USD prices drop days after forking, Giga Watt is unable to pay creditors.
Latest Bitcoin Cash News
Not only are payment processors, chip-set manufacturers and coin hodlers bleeding but the situation is so dire, Giga Watt is has cash flow problems. It has already filed for bankruptcy under Chapter 11 Bankruptcy Protection meaning the law shall take its course allowing for proper reorganization of Giga Watt’s affairs, assets—of around ,000 and debts whose estimates place at around million to million.
Read: Markets Steady After Yesterday’s Plunge, Analyst Says Bitcoin Is Nearing a Buy Zone
Under the law, the mining firm won’t be liquidated. Instead as the law dictates–the management or a trustee might step in to operate on behalf of 20 unsecured creditors claiming million. At the moment, we aren’t sure whether Andrey Kuzenny—one of the company’s directors owning 10 percent of the firm will continue calling shots or if someone outside the company will take over. However we know the meeting announcing their bankruptcy filing protection was convened by him.
Interesting Read: Huobi Plays Party Line in China, Creates Communist Committee
Although worsening market conditions are obvious contributors, Giga Watt’s plans are grand if not over ambitious. Describing themselves as the Best home for Computing Power the Washington based “world’s first full-service specialized compute power provider” aim was to be a major player in North America crypto mining.
Boosting an impressive resume with 50MW of infrastructure power capacity in operation, complete transparency and offering extraordinarily low effective electricity cost of around 2.8 cents per KWH for mining different coins including BCH via S9 miners.
BCH/USD Price Analysis
Weekly Chart
While most exchanges as BitFinex are yet to re-activate BCH/USD trading, losses are huge all thanks to this expensive ABC and SV hash war. From statistics, BCH is down 55 percent in the last week and is now trading at new lows at 5.
Of course, fading the market is the last thing on our mind and though prices could recover, it mostly depends on how the hash rates between CSW and ABC diverge.
Should the gap narrow or CSW eclipse that of ABC as the number of full nodes running the SV client increase then BCH could drop to super new lows—perhaps below 0.
Daily Chart
What we have in the daily chart is a bear break out pattern. In the aftermath of the hard fork, BCH prices almost halved dropping from 0 to 0 but are now stable.
Nonetheless, this shouldn’t be interpreted as positive because as long as prices are trading below this resistance previous support at 0, sellers are in charge. Therefore, as price action dictates, we recommend selling BCH on every pull back in lower time frames and let the trade run in exchanges that allow BCH trading.
For safe trading, fitting stops should be around 0. In case they are hit then traders would revert back to neutral waiting for convincing pull backs triggering sells and subsequent drop of BCH prices below Nov 20 lows.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
The post BCH/USD Price Analysis: Bitcoin Cash Wars Force Giga Watt to File for Bankruptcy appeared first on NewsBTC.
Mt Gox’s Corporate Creditors Can Now File Claims for Bitcoin Refunds
Corporate creditors of the long-defunct bitcoin exchange Mt. Gox can now enter online claims for refunds of trapped bitcoin assets.
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Mt Gox’s Bitcoin Creditors Can Now File for Rehabilitation Claims
Creditors of the defunct bitcoin exchange Mt. Gox can now start to submit proofs for claiming refunds in the exchange’s rehabilitation process.
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Long Blockchain — Formerly Long Island Ice Tea — Fails to File 2017’s Annual Report, Large Losses Expected
Long Blockchain Corp., — formerly Long Island Iced Tea — expects to report a wider net loss for 2017, but has said it will be late in filing its annual report. The company expects to report a net loss of about .9 million for 2017, compared to a net loss of about .4 million in 2016.
Following the announcement, shares of Long Blockchain fell 8.1% today, closing at .93. These numbers followed a 9% drop on Tuesday. Of note is that the stock’s decline in recent months has paralleled a decline in the value Bitcoin, from almost ,000 in December to under ,000 today.
The filing, signed by chief executive officer Shamyl Malik, said that Long Blockchain would not be able to file the annual report on time “without unreasonable effort and expense.”
Rebranding: From Beverages to Blockchain
Over the past few months, Long Blockchain has been attempting to rebrand itself, shifting focus from beverages to blockchain technology. Apparently, investors aren’t buying. Earlier this year, the company was issued a delisting notice (its second) from Nasdaq for failing to keep its market cap above million.
In December, when the company announced its name change and diversification, it experienced a near tripling of its share price overnight. These numbers didn’t last. The problem is that Long Blockchain’s filings don’t back this new direction up: according to its most recently filed balance sheet (from November) the company currently owns no blockchain assets.
Long Blockchain has also failed to follow-through with seemingly concrete plans to move into the crypto-space announced earlier this year. In January the company revealed plans to spend .2 million to buy 1,000 cryptocurrency mining machines. Less than a week after the announcement Long Blockchain abandoned plans to sell stock to finance the purchase, and by the end of the month, it had abandoned the mining proposal entirely.
Further, in late-February, the company announced a change in leadership. Shamyl Malik, who previously ran the firm’s blockchain efforts, took over as CEO, replacing Phillip Thomas. “Shamyl has shown great initiative and leadership since joining the team, and his appointment as CEO and our planned spin-off will allow the Company to execute on a clear, focused Blockchain strategy,” Thomas said in a statement. As noted, this “blockchain strategy” has yet to actually materialize.
Long Island Ice Tea wasn’t the first company, nor will it be the last, to try to take advantage of the media attention that cryptocurrencies and blockchain technologies have commanded as of late. Others, like Kodak and Atari, have diversified their platforms too, with both companies recently putting forth plans to develop their own tokens. Like Long Blockchain, these fledgeling companies have been met with some skepticism from experts and industry insiders.
Image Courtesy of Shutterstock
The post Long Blockchain — Formerly Long Island Ice Tea — Fails to File 2017’s Annual Report, Large Losses Expected appeared first on NewsBTC.
Investors File Class Action Against BitConnect Following Abrupt Closure
A class action suit has been filed against exchange and lending platform BitConnect, which recently closed following U.S. cease-and-desist orders.
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Prosecutors File Charges in Alleged $250 Million Crypto Mining Fraud
Authorities in South Korea have reportedly filed suit against a U.S. cryptocurrency mining firm, alleging a multi-million dollar fraud.
CoinDesk
Two Firms File Bitcoin ETF Applications in Wake of CBOE Futures Launch
&8230nThe post Two Firms File Bitcoin ETF Applications in Wake of CBOE Futures Launch appeared first on CryptoCoinsNews.n
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ETF Firms File to Create Blockchain Investment Products
Two companies filed partial prospectuses to launch blockchain-related exchange-traded funds in the last week.
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Blockchain Firms Ripple, R3 File Dueling Lawsuits Over Crypto Contract Dispute
Distributed ledger startups Ripple and R3 have become embroiled in a new legal battle over a cryptocurrency options contract dispute.
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