Posted on

The Guangdong Provincial Public Security Bureau dismantled a criminal network this week operating websites dedicated to illegal gambling.

According to Xinhua News, the group was active on the Internet, with clients from all over the world generating revenues of over $10 billion.

The operation of the security agencies was named “Net Security No.9” and aims to combat cybercrime related operations in Chinese territory.

According to reports, the criminal network ran several websites and online casinos, accepting Bitcoin (BTC), Ethereum (ETH), and Litecon (LTC) as international payment methods.

Xinhua says the operation had some pretty surprising results:

“The network took off more than 20 involved gangs, arrested more than 540 suspects, smashed more than 70 gambling apps and websites, shut down more than 250 online social platform chat groups, and frozen more than 260 million yuan of funds involved in the seizure. A group of servers, computers, mobile phones, bank cards and other items involved.”

Security agencies started the investigations in May. After their research, they were able to see the high organizational level of the group and the massive amount of operations they were able to perform.

“The gambling platform has been in operation for more than eight months, and it has developed more than 8,000 agents at two levels and 330,000 members, involving many countries and regions. Since the platform recharge only accepts virtual currency, the general members will not operate. Therefore, many internal hedge groups of the winning and losing transactions are derived, and the agency funds flow exceeds 10 billion yuan.”

It is important to note that China prohibits the use of cryptos as a substitute for money, and this type of operation is therefore considered illegal. However, the country also has one of the most critical cryptomarkets in the world.

According to Coindance data, most of Bitcoin’s mining power is linked to Chinese companies, along with several significant cryptos such as Tron, Neo, Qtum, and Vechain.

Beyond the betting operations, the network’s M.O. Included a series of faultless operations including Ponzi schemes, Pump and Dump, and pure fraud:

“The dealer behind the game analyzes the gambler bet, manipulates the odds according to the betting ratio, allows a small number of people to win, most people “float,” and the dealer gets the difference and makes a profit. Some of the gambling personnel were deeply involved, resulting in bankruptcy and even illegal crimes such as theft and robbery.”

The FIFA World Cup always attracts a large number of enthusiasts and gamblers. According to Sportytrader, over £236 million is spent on each match on internet gambling. The bets are not just on the winner, but on practically any aspect of a match.

loading…

Posted on

China Dismantles Network Using Cryptocurrencies to Ilegally Bet on the World Cup Results

The Guangdong Provincial Public Security Bureau dismantled a criminal network this week operating websites dedicated to illegal gambling.

According to Xinhua News, the group was active on the Internet, with clients from all over the world generating revenues of over $10 billion.

The operation of the security agencies was named “Net Security No.9” and aims to combat cybercrime related operations in Chinese territory.

According to reports, the criminal network ran several websites and online casinos, accepting Bitcoin (BTC), Ethereum (ETH), and Litecon (LTC) as international payment methods.

Xinhua says the operation had some pretty surprising results:

“The network took off more than 20 involved gangs, arrested more than 540 suspects, smashed more than 70 gambling apps and websites, shut down more than 250 online social platform chat groups, and frozen more than 260 million yuan of funds involved in the seizure. A group of servers, computers, mobile phones, bank cards and other items involved.”

Security agencies started the investigations in May. After their research, they were able to see the high organizational level of the group and the massive amount of operations they were able to perform.

“The gambling platform has been in operation for more than eight months, and it has developed more than 8,000 agents at two levels and 330,000 members, involving many countries and regions. Since the platform recharge only accepts virtual currency, the general members will not operate. Therefore, many internal hedge groups of the winning and losing transactions are derived, and the agency funds flow exceeds 10 billion yuan.”

It is important to note that China prohibits the use of cryptos as a substitute for money, and this type of operation is therefore considered illegal. However, the country also has one of the most critical cryptomarkets in the world.

According to Coindance data, most of Bitcoin’s mining power is linked to Chinese companies, along with several significant cryptos such as Tron, Neo, Qtum, and Vechain.

Beyond the betting operations, the network’s M.O. Included a series of faultless operations including Ponzi schemes, Pump and Dump, and pure fraud:

“The dealer behind the game analyzes the gambler bet, manipulates the odds according to the betting ratio, allows a small number of people to win, most people “float,” and the dealer gets the difference and makes a profit. Some of the gambling personnel were deeply involved, resulting in bankruptcy and even illegal crimes such as theft and robbery.”

The FIFA World Cup always attracts a large number of enthusiasts and gamblers. According to Sportytrader, over £236 million is spent on each match on internet gambling. The bets are not just on the winner, but on practically any aspect of a match.

loading…

Posted on

Augur Is Live: Decentralized Prediction Market Launches After 2-Year Beta

Augur is finally live.

The decentralized platform for betting on real-world predictions was one of the first applications built on top of the ethereum blockchain, and its creators  sold “reputation” (REP) tokens for over $5 million in 2015 – a time when few were talking about “ICOs” or “utility coins.” A public beta version of the platform came out the following year, and its team published a revised version of its white paper in January.

Now, the Forecast Foundation, the not-for-profit behind Augur’s development, has announced the launch of the long-awaited platform, which was accompanied by the release of the final version of the Augur application as open-source software.

The years-long delay in reaching this point may have been frustrating for token holders, but it has allowed the Augur team to aggressively vet their code through internal audits and a generous bug bounty program. Notably, Augur offered $200,000 for bugs that qualified as “critical” (though the team hasn’t announced any rewards larger than $5,000).

The project has good reasons for being so circumspect.

As Tom Kysar, operations lead at the Forecast Foundation (which was created to support Augur), told CoinDesk in February:

“We’ll probably be the largest and most complex application to be attempted to be deployed on ethereum.”

At the same time, he added, “Once Augur is live on the mainnet” – that is, once it’s live on the ethereum blockchain – “we have no more control over Augur than anyone else does.”

So, the risk that a serious vulnerability could cripple a complex decentralized application like Augur aren’t just academic. After all, the entire DAO saga – ICO, launch, hack, ethereum fork and ensuing divisions – unfolded in the time between Augur’s token sale and its launch.

How it works

Augur allows participants to bet on anything.

As long as the outcome can be verified in the real world, users can create a prediction market for anything from ether’s price, an election in Brazil or the outcome of Iceland v. Argentina in the World Cup.

What distinguishes Augur from a traditional betting market is that no single party sits in the middle, meaning that users are likely to pay lower prices.

Removing the centralized intermediary from a betting market presents a problem, however: how to bring dispersed, financially interested parties into agreement about the actual outcome of the predicted event?

In Augur’s system, the creator of a prediction market designates a “reporter” to vet the outcome. This designated entity puts down a deposit of REP tokens, which they lose if they incorrectly report the outcome and other REP holders challenge them. The reporter is compensated through fees.

Day-to-day betting is not done in REP, but in ether, the native token of the ethereum blockchain (though, eventually, the plan is to support other ethereum-based tokens). Users can buy and sell shares in particular predictions, which are priced according to the likelihood the market attaches to each outcome.

More than just cheap bets

Augur’s white paper argues that fees on the platform will go “as low as market forces can drive them,” providing those placing bets with an attractive alternative to current offerings.

The platform will also likely be difficult for governments to block or censor if, as Kysar argued, no single party is in control of it – even the Forecast Foundation. That could make Augur appealing in jurisdictions where sports gambling is illegal, for example.

Augur’s creators see it as more than just a rival to gaming sites such as Paddy Power, though. The project’s website suggests its usefulness for forecasting – whether elections or quarterly product sales – and hedging against high-impact, low-likelihood events such as natural disasters.

Forecast Foundation co-founder and senior developer Joey Krug summed up the team’s ambition last year, when he wrote:

“If Bitcoin gave us decentralized currency and Ethereum brought decentralized computation, Augur will enable a decentralized financial system.”

Another CryptoKitties?

Before Augur can overhaul the global financial system, though, it has to attract users.

Kyle Samani, co-founder and managing partner of the cryptocurrency investment fund Multicoin Capital – which he said does not currently own any REP tokens, but is following the project closely – told CoinDesk that the Augur team wants a “slow and steady” launch – nothing “loud [and] crazy.”

“Not sure how much demand there will be,” he continued, given that “they are not doing mainstream consumer marketing.”

That said, if demand does materialize, Augur could put considerable strain on ethereum, according to Corey Miller, an investment analyst at cryptocurrency investment firm BlockTower Capital.

Echoing Kysar, Miller said Augur would be “the most complicated dapp to ever launch on ethereum.”

But he added:

“Ethereum doesn’t handle complicated so well.”

In Miller’s view, even modest demand for Augur could lead to a situation similar to the one caused by CryptoKitties at the height of its popularity, when the ethereum network slowed to a crawl and transactions became inordinately expensive.

In other words, the launch could turn out to be loud and crazy after all.

Ribbon-cutting via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

ICO Explores Completely Uncharted Waters of Sports Betting

More than 80 countries have laws that legalize gambling. Sports betting occupies the largest market share in the global gambling market. In fact, it makes up for 40 percent of the revenue that is generated worldwide according to the Global Sports Betting Market report by Technavio. The report states that annual revenues are in the region of $400 bln each year. Certainly sports betting is a popular pursuit; a Statista survey indicates that half of people 18 years or older have placed a bet on a sports event at least once during their lifetime.

Online bookmaking has certainly taken off, but the element of trust needs work. New developments such as Blockchain technology and smart contracts can redefine sports and other betting. Blockchain has proven itself time and again in critical areas such as finance, banking and even medicine. The benefits it has lent to these sectors allow for trust to be created in areas where it has been missing.

Early bird gets the worm

However, as of now there is no crypto bookmaker on the market. This means that a pioneer has the complete opportunity to capture and create the market. The success of the project would create an option for potential investors, who will be tempted by the reliability, verifiability and transparency that Blockchain and smart contract technology provides. The new entrant could leverage technology and leap ahead, while opening up new horizons for players, who have access to ‘online betting’ but are still unsure if they are getting a raw deal.

The key is transparency

Ethereum’s powerful smart contract features are ideal for building a crypto-betting solution. The Ethereum Blockchain presents opportunities that span investing and conducting transactions online. It can be scaled to betting applications with ease. Payments could be guaranteed by smart contracts and would increase transparency significantly.

Risks against embezzlement are also minimized due to the restrictions on access to the investment funds. The payout amount can be locked on the account of the smart contract at the time of placing the bet and cannot be expended or spent prior to the settlement. None of the parties can make changes to the bet that has already been placed or spend the prize fund.

Full control and total safety

The XWIN platform has been developed on the Ethereum Blockchain and is the first crypto-betting service that provides full control over investments and provides complete access from any corner of the world 24 hours a day, 365 days a year. Customers are assured their privacy and confidentiality would be maintained.

There has been a complete redefinition of the relationship between players and gambling resources. Investors would have far greater control while betting than they have ever had before. As to the safety of the bets themselves, XWIN’s whitepaper states:

“XWIN smart contract performs the functions of an arbitrator that autonomously and completely independently fulfills the terms of agreement. In other words, if the bet was made using the smart contract, the conditions prescribed in the smart contract should be met 100 percent regardless of the desires of the parties. The better who places the bet with XWIN, receives information about all conditions, and subsequently these conditions cannot be changed since they are written in the smart contract.”

An emerging crypto-betting token

The XWIN token will facilitate crypto-betting and bookmaking. It allows for co-ownership in the world’s first crypto-bookmaker where investors receive 100 percent of the net income without the need for much interaction. The tokens are available for sale in an initial coin offering (ICO), which is stated to begin on Jan. 1, 2018. A total of 100 mln XWIN tokens will be issued, out of which 80 percent are being put on open sale. Purchasing tokens is easy and investors can head to their website and register.

An economic model in place

Bookmaking is immensely profitable business. XWIN would be keeping a margin range of 6-20 percent of the betting rate. There are plans in place to make the margin from the better’s bet to be credited to the account of the smart contract, which would be managed autonomously. Margins would be distributed in the manner illustrated in the chart. Notably, investors stand to gain 20 percent of the margins.

Margin Distribution

Once again Blockchain has proved its utility in a new industry. Players will gain the convenience of 24 hours betting and will know their funds are protected.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Posted on

Mark Cuban-Backed Unikrn Raises $31 Million in E-Sports Token Sale

E-sports betting startup Unikrn has raised roughly $31 million in an initial coin offering.

The firm collected 112,720 ethers – an amount worth approximately $31.4 million at press time – in a token sale that took place in two phases, including 56,000 ETH (roughly $15.6 million) in a presale backed by celebrity investor Mark Cuban. In an email, Rahul Sood, chief executive of Unikrn, said that the company had sourced contributions from 112 countries, characterizing them as “mostly small purchasers.”

The ICO’s completion also follows Unikrn’s receipt of a gambling license in Malta, a significant boon for a company looking to apply the tech to the electronic sports betting space.

The idea is that Unikoin Gold, the token that was up for sale, will act as a common medium of exchange for bettors to use on the platform, which allows for placing wages on games like League of Legends, Defense Against the Ancients (Dota) and CounterStrike, among others.

Unikoin Gold is actually replacing a previous in-house virtual currency, dubbed Unikoins, that was used in conjunction with government-issued currencies on the site. The startup was founded in 2014 with backing from investors like Elisabeth Murdoch and Ashton Kutcher.

According to Sood, the coming months will see the release of additional applications to build on the Unikoin framework, including tools that allow users to garner more tokens.

“We have plenty of applications that allow users to use and earn tokens — we will start to release them in November through February,” he said.

Image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Posted on

Two Stories, Same Betting on Bitcoin, Ethereum and ICOs Gamble Going ALL-IN

Hedge fund legend, former Fortress hedge fund manager Michael Novogratz, father of four.
Didi Taihuttu, owner of a company offering computer courses, father of three.
Both of them has put all what they have, all their wealth, and beyond that, betting on Bitcoin-Ethereum-ICOs, betting on BLOCKCHAIN Revolution.

What life has in store for this two families, will also be the family story of a hundreds of thousands anonymous investors throughout the world in the next couple of years.


Related Articles:

Blockchain, Bitcoin, Ethereum, ICOs: Beginning Of The End Of Wall Street And Banking System As We Know!?


BITCOIN PRICE MORE THAN $10,000

Former hedge fund manager Michael Novogratz is predicting the Bitcoin price in next six to ten months to climb over $10,000 largely because as he had seen in many investment hubs around the world there is rising interest of heavy investors to invest in Bitcoin and in all range of digital currencies through ICOs.

Even as he says, there are signs of a bubble, but almost all the bubbles during the history has resulted at the end in a very positive change in the way people live, and in born of hugely successful companies out of the bubble. The same will be with Blockchain revolution, Decentralized revolution. So 10 years from now Blockchain, decentralized systems will be everywhere, in everything and fundamentally change the way we live, and change the way how we do the business.

Novogratz is starting a $500 million fund through Galaxy Digital Assets Fund. 

From total amount, the $150 million is his own money and the rest plans to raise from outside sources, wealthy individuals, family members, and fellow hedge fund managers. So this project to be ready until the January to invest in Cryptocurrencies, ICOs and Blockchain related technologies.

Novogratz plans to take advantage of this blockchain, decentralized revolution that is taking place currently all over the world and he will invest and spread bets on the all ecosystem, broad range of spectrum of cryptocurrencies and ICOs, but mainfield to be Bitcoin and Ethereum, as it will be public utility of this new space.(As world computer, with its internet of value and internet of things).

As for the bubble popping Novogratz thing it’s too early, there is much more space and time until at one point inevitably will be a major corrections in this market. Let’s remind of the internet bubble of 1999, in which it was invested whopping $6,5 Trillion so imagine the discrepancy and the space between today’s total market cap of cryptocurrency industry is less than $200 Billion.

Bitcoin is digital gold and it’s becoming a digital store value for more and more investors and this is from every point of view very sensible in this digital age revolution.

BY 2020 THE WEALTH TO BE QUADRUPLED

Didi Taihuttu, the owner of the company offering computer courses, has decided to make the betting of his life, and as a believer in Bitcoin in a big way, he has invested everything what he and his family had on – bitcoin and other cryptocurrency.

“We are an adventurous family and are going to gamble for a moment to live minimalist lives.” – Didi Taihuttu

Selling his house, the car, the motorbike, electric bikes, the children’s toys, clothing, shoes…

“People will say, ‘You’re crazy’,” Taihuttu told Business Insider. “But we are an adventurous family and are going to gamble for a moment to live minimalist lives. If you never take a risk, life is boring.”

He is firm in his believe that this investment in Bitcoin and other cryptocurrencies until the 2020 will become fourth time higher in value and make him and his family very rich.

“The Internet was a revolution for information. I think that blockchain and cryptocurrency are revolutionising the monetary system,” says Taihuttu. “In five years’ time, everyone will say: ‘We could have seen it coming.’ I am responding to this change now.”

On the overall it is expected to be a tsunami of investments, implosion of Bitcoin, from people of all the world participating on this new revolutionary blockchain based industry, I can hear the herd coming, (the bulls running in wild west)!?

Still the main concern of these two investors and millions other will be to have so called macro skill or sixth sense and to feel the right moment to pull out of the game.

Of course many will meantime lose the money, but at the end the society will make a huge social profit, and have much, much better way of living and doing business.

Read Also: