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BTCP Plunges After Exposé, Team To Hard Fork Bitcoin Private

CoinMetrics Exposes Bitcoin Private 

On Sunday, Coin Metrics, an open-source crypto asset analytics team, released a damning report about Bitcoin Private (BTCP), a fork of both Bitcoin and ZClassic (which itself is a fork of ZCash). In the report, titled “Don’t trust, verify” in an evident nod to the popular saying in the crypto community, it was revealed that the project, which was painted as a private version of Bitcoin (BTC), could have potentially created two million tokens out of thin air, which wasn’t mentioned in the whitepaper.

More specifically, there were 102 “extra-large blocks” during the BTC “supply import” into BTCP, which created “400 unexpected outputs.” Per Coin Metrics, each of those mysterious block outputs contained 50 BTCP apiece, meaning that with 102 “extra-large blocks,” which contained 400 unexpected outputs, 2,040,000 BTCP was falsely minted out of thin air.

These tokens were reportedly routed to shielded addresses (a feature in ZCash), subsequently going unnoticed for a large period of time, due to the fact that block explorer sites didn’t take notice of this influx of fraudulent BTCP.

Then, between mid-July and mid-August, the individual behind the minting began to empty his/her holdings, withdrawing 300,000 BTCP from the shielded pool to presumably dump them en-masse. In all, per Coin Metrics’ estimates, the individual probably made away with $1 million to $3 million in profits.

At first, the crypto community at large, who has always had a penchant to detest Bitcoin forks, quickly bashed the Bitcoin Private team, claiming that they left a vulnerability on purpose. Some took to bashing Rhett Creighton, a controversial figure in the industry and a purported BTCP supporter. Others, like leading Bitcoiner Peter Todd, claimed that the founders of the project did it. Mike Dudas, the founder of The Block, took the time to double-down on his support for Bitcoin, claiming that this debacle only accentuates the fact that BTC is genuine, not a fork of any kind.

This sentiment was issued all throughout the cryptosphere, as notable industry insiders took to their Twitter pages to call out the project.

Chain To Be Hard Forked

However, since this report arose, those behind the project have since issued a lengthy response by the way of a Medium rebuttal. The response, which was posted just an hour or two ago, reveals what purportedly happened, accentuating that it isn’t the team’s fault that two million BTCP were premined.

In fact, it was explained that a non-core developer gained contributor access to BTCP’s GitHub, which allowed him/her to omit a pertinent line of code potentially accidentally. During the fork, an anonymous bad actor (maybe the developer under a guise) “exploited this bug” to generate the sum in question.

Keeping this in mind, the Bitcoin Private team has decided that it will be advantageous to hard fork its mainchain, removing all shielded coins from existence (only ~20,000 of which are legitimate, the other 1.7-1.8 million were falsely generated). The solution, which is being coded as this is written, will fix the over-supply issue on the chain and ensure that the bad actor cannot liquidate any fraudulent BTCP tokens.

BTCP Plummets

Regardless, in spite of the quick response from the Bitcoin Private team, the damage has already been done to BTCP markets. Following the release of the exposé piece, the asset plummeted, falling from $2.42 to $1.9 within a matter of a few hours. And even upon the release of the response, BTCP maintained its foothold around $1.95, failing to move higher or lower in step with the overarching crypto market.

At the time of writing, BTCP is worth $1.96 a pop, with its 24-hour performance amounting to a 17.2% loss. Interestingly, this move comes on the back of an influx of volume, so tumultuous price action is likely to continue moving into the near future, especially as this controversy continues to unfold. 

Moody Window Title Image Courtesy of Glenn Carstens-Peters on Unsplash

The post BTCP Plunges After Exposé, Team To Hard Fork Bitcoin Private appeared first on Ethereum World News.

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Zcash (ZEC) Leads the Privacy Coin Pack, Surging 45% on the Day

Privacy coin Zcash has surpassed all other altcoins in the top 100 during today’s trading by surging 45% on the day. The pump was initiated around 18 hours ago when news emerged that the Gemini Exchange would become the first fully licensed Zcash trading platform.

Analytics website coinmarketcap.com reports that ZEC has surged 45% over the past 24 hours. It is currently trading at $355 which is up from $248 where it traded the same time yesterday. The exchange owned by the Winklevoss twins is fully approved by the New York Department of Financial Services (NYDFS). In addition to Zcash, Litecoin was also listed on the exchange however price action for LTC has been lackluster.

Zcash has been traded across most major exchanges over the past 24 hours with Binance leading the way with over 20% of the total. The trade volume in ZEC has jumped over 1400% in the past day from around $30 million to over $460 million at the time of writing. That surge in volume has pushed the total market capitalization up over $1.4 billion which has pushed the altcoin above Lisk, Bitcoin Gold and the recently pumped Zilliqa.

Cameron Winklevoss stated;

“Our approval makes Gemini the first licensed Zcash exchange in the world. It also makes the NYSDFS the first regulatory agency in the world to supervise Zcash,”

The twins also acknowledged some of the privacy coin’s features such as the use of a combination of unshielded and shielded addresses. Gemini will initially allow deposits from both forms of addresses but only unshielded withdrawals will be permitted.

Other coins listed by the exchange have had a slow day but Zcash has literally taken off on the news. According to a Forbes report, Gemini users will be able to buy and sell Zcash on May 22.

Zcash is one among a number of privacy based altcoins all vying to be the standard. Among them is the hacker’s favorite, Monero, which has had a slow month rising only 10% while Zcash has jumped almost 60% in the same period. Dash has also had a slow month rising only 14% while Verge has actually lost 33% over the past month. Bitcoin Private has also lost ground in the past month falling over 12% and rival Zcoin has had a slightly better gain of 17% over the past 30 days, similar gains have been posted by PIVX.

Zcash is currently the king of the privacy coins out performing all of its competitors largely by the grace of Gemini Exchange.

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Bitcoin Private Price Spikes 20%, More Gains Possible?

Bitcoin private price surged higher recently and settled above $50.00 against the US Dollar. BTCP/USD remains supported on the downside for more gains.

Key Talking Points

  • Bitcoin private coin price started a nice upside move and traded above $70.00 (Data feed of coinmarketcap) against the US Dollar.
  • There is a major bullish trend line in place with support at $48.00 on the 7-day chart of the BTCP/USD pair.
  • The pair is currently in an uptrend and it could break $65.00 once again in the near term.

Bitcoin Private Price Forecast

There were heavy movements in bitcoin private coin price from the $25.00 low against the US dollar. The BTCP/USD pair started a solid upside move and traded by more than 150% higher to clear the $50.00 resistance level.

It even traded above the $70.00 level recently and formed a high at $77.15. Later, it started a downside correction and traded below the $60.00 level. There was also a push below the 23.6% Fib retracement level of the last wave from the $28.46 low to $77.15 high.

Bitcoin Private Price Analysis BTCP

However, the decline was protected by the $48.00-50.00 support area. Moreover, the 50% Fib retracement level of the last wave from the $28.46 low to $77.15 high also acted as a support.

The price formed a base around the $48.00 level and is currently trading 20% higher to $55.00. On the downside, there is a major bullish trend line in place with support at $48.00 on the 7-day chart of the BTCP/USD pair.

Therefore, bitcoin private price remains supported on the downside near the $50.00 and $48.00 levels. As long as the price is above the $48.00 support, it could continue to move higher.

On the upside, an initial resistance is near the $60.00 level. A successful close above the stated $60.00 resistance may perhaps open the doors for a push above $65.00 or even $70.00.

Overall, the current price action is very positive for BTCP and its price remains in an uptrend above $48.00.

Trade safe traders and do not overtrade!