It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions. The goal is simply to have a thread we can link to anyone with questions on Grayscaleand its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread.My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers. Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect Everything below will be in reference to ETHE but will apply to GBTC as well.If those two segregate in any way, I will note that accordingly.
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF?
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed?
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created?
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor. Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”) Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product?
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Cash: The investor pays the subscription amount in cash and the Authorized Participant will use that cash to purchase ETH.
ETH: The investor transfers the ETH to the Authorized Participant, which will contribute the ETH in-kind to the Trust.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow?
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there. As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however. Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH?
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself. Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares?
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure?
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset. Source: ETHE’s informational page on Grayscale’s website - Located Here Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE?
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC. ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing?
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC. As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on. Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain?
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good. Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon. Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel?
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.) That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely. IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]…
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0?
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015. Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?”
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
Access to trading within a tax advantaged retirement account
Institutions can easily and safely get exposure to crypto in a more legal-friendly manner
Ease of use for those who are not very technologically savvy
Ease of access for someone who doesn’t want to set up a Coinbase account
Perceived trust in institutional platforms over something like Coinbase or Kraken
Degen traders who just want access to the volatility ETHE provides that have no interest in crypto beyond that
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance. As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium?
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
ETHE is NOT redeeming shares and as such doesn’t have an effective arbitrage mechanism
ETHE has a 1 year wait to be sold on the secondary market, again negating the ability to effectively arbitrage the premium
People may simply be willing to pay a premium for the benefits stated above.
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:
ETHE hasn’t been around as long, so there is less secondary market supply to go around
ETHE was listed at an insanely high premium to begin with
ETHE might simply be more popular at the moment
Could just be sheer stupidity (investors think ETHE is a 1:1 ratio not 1:11)
Are there any other differences between ETHE and GBTC?
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc?
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing. For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH?
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund. In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale?
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know. Per user Over-analyser (in comments below):
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE?
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.
Any reason I shouldn't buy Bitcoin on Bittrex and then sell it on Coinbase?
From what I've seen, there's a pretty consistent $500 gap between what bitcoin sells for on bittrex and what it sells for on Coinbase. If that's the case, is there any reason I shouldn't just buy all my coins on bittrex and then sell them on Coinbase?
Dear CoinEx Users: I am Haipo, CEO of CoinEx. The Chinese New Year has just passed and the coronavirus outbreak casts a shadow on society and our hearts. At this moment, I sincerely hope that everyone stay safe and healthy. From December 24, 2017 to today, CoinEx has been with you for more than two years. Having experienced a rebirth in 2018, CoinEx embarked on a new journey since last year. “Do something that can change the real world with the blockchain.” This is my original intention to create CoinEx, and I hope more people will get to know blockchain through CoinEx. CoinEx always bears in mind the ambition of putting the blockchain to good use and making the world better. 2019 witnessed how CoinEx consolidated the foundation for its ambitions. CoinEx Accelerators, futures, options, CoinEx Lending, CoinEx DEX, CoinEx Chain, the key account privilege system, and a new value system for CET… We have completed what may take others four or five years, but we also know that a complete ecosystem is the first step to achieve our ambitions. CoinEx still has a long way to go, and what we are doing now is just a small part. With the arrival of 2020, the blockchain world has embraced its eleventh year, and CoinEx has also ushered in its third year of growth. I am very grateful to every user who has always been supporting CoinEx. It is your encouragement along the way that makes it possible for me to share with you our progress in 2019 and look into 2020. Now I’m going to explain to you in details of what CoinEx has gone through in the past year and every new breakthrough it has achieved.
First, users are our first priority: 24-hour online customer service and key account privileges
“Users first” is the service principle that CoinEx has always implemented, and the ultimate product experience is our basic practice in abiding by this concept. As the chief product experience officer of CoinEx, I deliver one idea to the team on many occasions, that is, the most important for a product developer is the ability of instantly changing from an expert to a novice so that he or she can judge and design the product from users’ perspective. We want CoinEx to be a product that can be operated with ease even by a novice and a digital asset service platform that serves as a wallet. I believe that’s exactly what CoinEx means to its users as we really did it. In addition, in order to serve users around the world, we have launched versions of ten languages, respectively Arabic, Italian, Malaysia, German, Ukraine, Portuguese, French, Turkish, Vietnamese and Indonesian, in 2019. CoinEx has become a global trading platform with the most languages. High-quality and efficient service represents our efforts to implement the “users first” concept. In 2019, CoinEx’s global customer service team expanded four times on the original basis, and gradually improved the customer service system in practice. At CoinEx, every customer service personnel must be strictly selected and trained from interview to induction. We strive to ensure that each customer service personnel can be timely, meticulous and professional in answering users’ questions so that our users can enjoy high-quality services. As long as you have any doubt, the CoinEx customer service team will be there for you around the clock. On September 26, 2019, after months of user surveys and reference to the VIP service cases of hundreds of Fortune 500 companies, we officially launched a privilege program for key users. We must never be unworthy of every user’s trust, and we want every key user to enjoy his or her privileges at CoinEx. In addition to basic customer service, we provide them with “customized fast services” and “customized value-added services” from three aspects: the account, transaction, and service.
Second, build a complete product system: spot, futures, leveraged trading, options, perpetual contracts, CoinEx Lending, and Accelerator
In order to meet users’ diversified trading needs, we have refined our products carefully, and now we have established a complete product system covering spot, futures, leverage, options, perpetual contracts, wealth management products, and high-quality project accelerators. Spot Trading To enrich the asset classes of the spot market, the CoinEx Research Institute has dedicated itself to exploring and screening of global blockchain projects last year. At the end of 2019, there were 100 asset classes on CoinEx, a success in fulfilling the target set at the beginning of the year. For trading depth, we have introduced preferential policies for market makers, which is to cooperate with excellent quantitative teams in the market and run operating campaigns to increase our asset liquidity. Futures Trading On July 15, 2019, we launched a new trading service — futures contracts, and opened five major trading markets: Binance Coin, Huobi Token, OKB, Polkadot, and Telegram Open Network. At the same time, our original Call Auction along with Short-term/Long-term price limit ensures the stability of Futures market and large fluctuations in futures prices can be avoided. Leverage Trading In 2019, we launched a leverage trading function that allows users to invest more with small funds. Perpetual Contracts In addition to futures trading, we have also developed perpetual contracts to support the trading of digital currency futures such as BTC, BCH, LTC and ETH to meet the needs of professional traders for high leverage and arbitrage, inter temporal arbitrage and hedging. In the long run, such market is of great positive significance for digital assets. Options Trading In August 2019, we successfully launched a new derivatives trading market — options trading, a financial instrument based on futures. Compared with futures trading, options trading features lower risks, helping investors to profit from multiple dimensions. CoinEx Lending We launched CoinEx Lending, a wealth management product, which improves our derivatives services and provides users with an additional option for the pursuit of a stable investment. CoinEx Lending will distribute 70% of the platform’s interest from leveraged. Users only need to transfer the idle assets to CoinEx Lending to enjoy daily revenue, further enhancing their asset utilization. Excavator of quality projects: CoinEx Accelerator For the past decade since the birth of the blockchain, digital assets and projects have been driving the blockchain to realize its value step by step. As an important exploration of the application of blockchain technology, blockchain projects are often In 2019, after rigorous screening and in-depth research by the CoinEx Research Institute, the CoinEx Accelerator screened 13 premium blockchain projects including SEELE and BNN for users. These projects have proved excellent in both technology and asset appreciation. Among the ten projects with the highest return on investment according to media statistics in 2019, technology-based SEELE was included in the list with a 400% increase. At this point, CoinEx has completed the construction of the entire ecosystem for the product system. The cornerstone of the product has been solidified. What we need to do next is to make every function and service perfect.
Third, optimize the team structure and do something interesting with great minds
I once said that I wanted to create a company that is very fun, interesting, and awesome where some great minds are working on something exciting together. I have created the fun and interesting part. The main task of the past year is to find those great minds to join me. In 2019, the team went through a period of confusion and groping. There are some problems in terms of both staffing and department collaboration. Fortunately, such troubles have been greatly relieved after two organizational structure adjustments. In September 2019, Eddie, former Marketing Director at Bitmain, officially joined the CoinEx team. Eddie is an all-rounder with extensive experience in market operation and team management. I believe with him working with us, CoinEx will make greater breakthroughs in team management and brand building in the future. In addition, we have attracted increasing outstanding talents for the past year, and have grown to a team with nearly 100 members. At present, we have established a complete team management system, incentive system and training system. I always believe that only when the team members are united as one and all do a great job, can we provide better services for users.
Fourth, it is the mission of a digital asset service platform to screen high-quality projects: to launch 100 high-quality projects
The abundant types of trading assets serve as the foundation of a digital asset service platform. In the past year, the CoinEx Research Institute has been committed to exploring and screening high-quality projects worldwide, increasing the types and number of tradable assets for users. I am proud to say that, as of December 31, 2019, CoinEx has launched 100 high-quality blockchain projects. We ensure that every project has undergone in-depth research and investigation by the think tank of the Research Institute, and is finally strictly appraised by the coin issuance decision committee before it goes online. We hope that each CoinEx user can avoid unnecessary risks and rest more assured in investment. In 2020, we will continue to improve the asset list on CoinEx and provide users with global high-quality blockchain projects to further realize the vision of global and professional cryptocurrency exchange service provider.
Fifth, build the most solid cornerstone of the blockchain: CoinEx Chain, CoinEx DEX, and CET
At present, the public chain, the cornerstone of the blockchain industry, remains the bottleneck of the industry’s development, and the key still lies in technological breakthroughs. In 2019, CoinEx also explored the third generation of public chains. Our solution is three dedicated chains in parallel to achieve both performance and flexibility. On Nov.11 last year, ViaBTC, Bitmain, Matrixport, and Bitcoin.com jointly launched the Mainnet of CoinEx Chain, a milestone in our journey towards the ambition. CoinEx DEX is the first application scenario of CoinEx Chain. It is the world’s first DEX dedicated public chain developed on the Tendermint consensus protocol and Cosmos SDK, under the leadership of my good friend Jiazhi Jiang, a senior blockchain technology expert. CoinEx DEX is friendly to ordinary users who have zero experience in digital assets, and has made many innovations in applications and wallets. After CoinEx Chain and CoinEx DEX went online, CET was also given higher value and mission. As the basic currency of the public chain ecosystem, it has more value sources than the income of the CoinEx platform. Now we can use CET to develop tools at CoinEx DEX, to open accounts, to purchase and modify account names, etc.
Sixth, CoinEx’s ecosystem and partners
In the past year, besides the fruitful results in products and ecosystem improvements, CoinEx has also gained many like-minded partners. Market liquidity team In 2019, CoinEx further upgraded the market maker’s preferential policies. Market makers on other platforms or other excellent maker strategy teams can directly match CoinEx market makers and enjoy privileges at a negligible rate in CoinEx. CoinEx Chain nodes On October 16, 2019, CoinEx Chain officially launched the global Node Election plan. We set off from Shenzhen to places such as Beijing, Shanghai, Hangzhou, and Singapore to host offline campaigns. It’s easy to make new acquaintances, yet those who share the same ideals with you are hard to find. So we really cherish the cooperation with dozens of peers such as Matrixport, Hoo, TokenInsight, BTC.com, Bitcoin.com, Ant Mining Pool, Wayi, and NNB in the construction of the CoinEx Chain ecosystem. CoinEx Ambassadors Of course, CoinEx cannot grow without a group of special partners around the world — CoinEx Ambassadors. They commit themselves in work such as community building, promotion and product translation. They all contribute their share to CoinEx. I would also like to take this opportunity to express my gratitude to the CoinEx Ambassadors.
Seventh, keep moving forward in 2020
The year 2020 is a very special year. A considerable part of the important national strategic goals are set to be achieved in this year. Based on an intergenerational interval of a decade, we have entered the third generation of the 21st century. It is also a year of special significance for CoinEx. This year we will comprehensively upgrade our products to further enhance users’ experience, keep launching high-quality assets online at a steady pace to meet users’ more diversified demands for trading assets, accelerate globalization and compliance across the world, and launch a new Ambassador Program to drive the construction of CoinEx’s community. As for the CoinEx Chain, we will focus on the development of the Smart Chain, perform two hard fork upgrades on the DEX Chain, and introduce high-quality stable coins, Defi and other applications.
Blessings for the Future
The blockchain industry is still in its early stage of development, and huge room for growth is expected in the future. What we have to do is to continuously improve our product and service quality, as well as to enrich asset types to better meet user needs. Again, I would like to express my gratitude to the users who have shown great patience and support to CoinEx, to the CoinEx Chain nodes who have trusted us enough, to the CoinEx Ambassadors who have contributed a lot to our development, and to partners who have been working with us along the way. I wish you all the best in the new year! Haipo Yang, CoinEx CEO February, 2020 https://preview.redd.it/im4kwke3wtg41.jpg?width=1092&format=pjpg&auto=webp&s=7bb452833f2fa827f06a80c034dca1fa71025c73
Absolutely fed up trying to get my head around Arbing and fees.
Noticed that GDAX often trades a little higher than Bitstamp, so put together a little bot to try and arb between the exchanges. Simply, Sell Bitcoin on Stamp and Sell Litecoin on GDAX. What is completely ruining my head, is that in my mind, the spread must be over 0.55% ... that is GDAX's 0.30% fee and Bitstamp's 0.25% fee (In spot USD terms, which I'm calculating), between Bitstamp's ASK and GDAX's BID. Yet, when that criteria is met and a trade is made, orders are placed and filled at the amounts expected... it's consistently at a loss. On paper, these trades are always positive. Am I missing something? My sums are correct and match the completed orders/fills on GDAX and on Bitstamp, there are no extra fees being charged etc. Any insight would be appreciated, Thanks.
[uncensored-r/Bitcoin] Daily Discussion, February 11, 2018
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Revolution!! *Prelaunching* Alert! HitPay Wallet & Token Global Launch will be on 1st February’2020.
HitPay: The nextGen Multi-crypto wallet No No No its not 1000X or 100X token, but definitely it will be 10X to 20X in the next 30 to 60 days. Just Store Your Cryptos in HitPay Wallet & Earn Daily rewards in HitPay Tokens. Current TOKEN VALUE 0.10💲 Visit: https://www.hitpaywallet.com?ref=774159 Free Airdrop for early bird user. 💦 World’s First biometric secured Ethereum Block Chain Based Crypto-Currency Wallet with own HitPay oken which will be potentially worth $1-$10 a coin in next 90days is unbeatable. A lot of people made a FORTUNE with Bitcoin or other cryptocurrencies… now it’s YOUR time and MY TIME to do it with another Decentralized Crypto Wallet… That pays us for HODL our Crypto. You Can Earn As Much As $100/Day To Even $10,000 Per Day By Sharing This Opportunity. 🔹 Developed by one of the biggest payment solution company ‘HitPay’ just prelaunch their multi crypto wallet — ‘HitPay Wallet’ with Intelligent arbitrage trading bot HitMan AI. HITPAY-The NextGen multi crypto wallet with biometric security. Totally different strategy with their own HitPay(HITT) Token — will be launch on external exchange also. HitPay is an all-in-one online fingerprint enabled secured crypto wallet which supports multiple cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and others. HitPay wallet offers free multi-cryptocurrency accounts, which are accessible 24/7 worldwide on your Android, iOS device and web wallet also. 🔸 HitMan AI Arbitrage Trading: 👉 Monthly profit : it can be average 6%-15% monthly(Profit Share distributed daily) 👉 Minimum Holding on HitMan AI : 350$ 👉 Level Profit Share: 100% Level Profit Share from Level 1 50% Level Profit Share from Level 2 👉 Matching Profit Share: 10% Matching Profit Share on Dual Team Matching Profit Share Own blockchain explorechain: https://hitpaychain.com Own AI platform: https://hitmanai.com Visit: https://www.hitpaywallet.com?ref=774159 for HitPay web wallet or download the HitPay App from play store. Use Referral user I’d: 774159
Why does trading still seems to be tied to BTC China?
I think that the bots doing automatic trading are still influenced by trends of BTC China, why is that? If the regime desires to isolate their market is not something that foreigners should care about much in my opinion, there would still be volume in the rest of the world without them
I recently introduced a friend to our humble, little subreddit and they quickly pointed out that the language spoken here did not appear to be English. I suppose we do toss around a fair amount of acronyms, memes, and slang. I put together a quick glossary of terms for them and figured I should post it here in case any other new ethtraders can benefit from it:
Exchange Websites where you can buy and sell crypto-currencies. Some popular exchanges in North America are: Coinbase GDAX Gemini Bittrex Poloniex Quadriga Kraken
Whale Someone that owns absurd amounts of crypto-currency.
limit order / limit buy / limit sell Orders placed by traders to buy or sell a crypto-currency when the price meets a certain amount. They can be thought of as 'for-sale' signs. These orders are what are bought and sold against when traders place market orders.
market order / market buy / market sell A simple purchase or sale on an exchange at the current price. Market buys purchase the cheapest ETH available on the order book, and market sells fill the most expensive buy order on the books.
margin trading The act of 'magnifying' the intensity of your trades by risking your existing coins. (NOTE: Very risky, only for experienced traders and only on certain exchanges even then)
going long A margin trade that profits if the price increases.
going short A margin trade that profits if the price decreases.
bullish An expectation that price is going to increase.
bearish An expectation that price is going to decrease.
ATH All-Time-High. We've gotten a lot of these the past couple months.
Altcoin Generally any crypto-currency other than Bitcoin or Ethereum. (Though some Bitcoin folks would probably still say Ethereum is an altcoin)
ETH The crypto-symbol for Ether. Kind of like stock market symbols. (i.e., the crypto equivalent of AMZN meaning Amazon stock)
Symbols of some other crypto-currencies that are regularly discussed/shilled around here: BTC - Bitcoin LTC - Litecoin ANS - Antshares SC - Siacoin XRP - Ripple ETC - Ethereum Classic FCT - Factom (described as a software license more than a coin, but can still be traded)
Tokens Refers to the 'currency' of projects built on the ethereum network that have raised money via issuing their own tokens. Some common tokens discussed on this sub: GNT - Golem REP - Augur BAT - Basic Attention Token ICN - Iconomi
ICO Initial Coin Offering, somewhat similar to an IPO in the non-crypto world. Startups issue their own token in exchange for ether. This is essentially crowdfunding on the ethereum platform.
Shilling / pumping Someone essentially advertising another crypto-currency. If a coin is promised to cure cancer or be the second coming of Jesus, it's being shilled.
stable coin A crypto-currency with extremely low volatility that can be used to trade against the overall market.
arbitrage Taking advantage of a difference in price of the same commodity on two different exchanges. Often mentioned when it comes to comparing ETH prices on Korean exchanges against US exchanges.
FOMO Fear Of Missing Out. The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket.
FUD Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.
FUDster Someone that is spreading FUD.
Pump And Dump The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.
Bagholder Someone still holding an altcoin after a pump and dump crash. Can also just refer to someone holding a coin that is sinking in value with few future prospects.
Market Cap The total value held in a crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit. This site shows a great run-down of each coin's market cap: http://coincap.io/
ROI Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
TA Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.
Crypto-currency related, but not really specific to Ethereum:
blockchain The classification of technology that Ethereum falls into. Blockchains are distributed ledgers, secured by cryptography. They are essentially public databases that everyone can access and read, but the data can only be updated by the data owners. Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide. More detailed information available at: https://en.wikipedia.org/wiki/Blockchain
node A computer that possesses a copy of the blockchain and is working to maintain it.
mining The process of trying to 'solve' the next block. It requires obscene amounts of computer processing power to do effectively, but is rewarded with ether.
mining rig A computer especially designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high-end graphic processors (GPUs) to maximize their processing power.
Fork A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new 'governance rules' are built into the blockchain's code. Some more information available at: https://en.wikipedia.org/wiki/Blockchain#Hard_forks
POW Proof-of-work. The current consensus algorithm used by Ethereum.
POS Proof-of-stake (not piece of shit). The proposed future consensus algorithm to be used by Ethereum. Instead of mining in its current form, people that own ETH will be able to 'lock up' their ether for a short amount of time in order to 'vote' and generate network consensus. The plan is that these stakeholders will be rewarded with ETH by doing so.
sharding A scaling solution for blockchains. Typically, every node in a blockchain network houses a complete copy of the blockchain. Sharding is a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
software wallet Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources. MyEtherWallet (MEW) is one of the popular. (more on MEW below)
hardware wallet A device that can securely store crypto-currency. Hardware wallets are often regarded as the most secure way to hold crypto-currency.
Ledger Nano S / Trezor Two of the most popular hardware wallet models.
cold storage The process of moving crypto-currency 'offline', as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used: ---Printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box. ---Moving the files of a software wallet onto a USB drive and storing it somewhere safe. ---Using a hardware wallet.
Terms more specific to Ethereum
smart contract Code that is deployed onto the Ethereum blockchain, often directly interacting with how money flows. Not my quote, but: "A normal transaction allows you to send money from A to B. Smart contracts allow you to send money from A to B, on the condition that C happens."
Dapp Decentralized Application. This refers to an application that uses an Ethereum smart contract as it's back-end code.
The Flippening A potential future event wherein Ethereum's market cap surpasses Bitcoin's market cap, making Ethereum the most 'valuable' crypto-currency. This site shows the progress of the Flippening in real-time: http://www.flippening.watch/
gas A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
gas price The amount of ether to be spent for each gas unit on a transaction. The initiator of a transaction chooses and pays the gas price of the transaction. Transactions with higher gas prices are prioritized by the network.
Wei The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (1018)
Gwei Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (109)
Raiden Network An upcoming protocol change to Ethereum that will enable high-speed transfers across the network. It is similar in some aspects to Bitcoin's planned Lightning Network. The name, I assume, comes from the Mortal Kombat character named Raiden that can shoot lightning. More reading available at: https://themerkle.com/what-is-the-raiden-network/
Frontier, Homestead, Metropolis, Serenity The four planned stages of the Ethereum development roadmap. We are currently in the Homestead phase. The Metropolis update is likely to be available sometime in the next year.
MEW MyEtherWallet. A free site that can generate ethereum software wallets for you.
EEA Enterprise Ethereum Alliance. A coalition of startups and corporations trying to figure out the best way to use this dang thing.
DAO Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016. The hack stole about a third of the DAO's funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum's biggest stumbles thus far.
I've seen lots of posts about people complaining about the "hidden" cost of buying bitcoin between Coinbase Mobile and Coinbase Pro. Here is my stupid little calculator that will compare the cost of various buys and sells against pro.coinbase.com. It can run in any python console or on android as well with the help of a launcher
Coinbase Mobile seems to run at about a 3.5 % premium compared to Pro which usually only has about a 0.15-0.20 % premium.
CashApp Buy $100 BTC
CoinbaseMobile Buy $100 BTC
CoinbaseMobile Buy $100 in ETH
CoinbaseMobile Buy $100 in LTC
CoinbaseMobile Convert BTC->ETH
CoinbaseMobile Convert BTC->LTC
Basically, Coinbase Mobile seems to be running a 3.5% premium over just using Coinbase Pro. The "Free Conversion" feature runs about a 1% premium over just doing it on the Coinbase Pro exchange. If you have to use mobile, CashApp is substantially cheaper. Note: I'm only referencing Coinbase Pro. Most of the time, most of the US exchanges BTC/USD order books are within 0.10% of each other. There is arbitrage, but for the numbers I'm looking at, I consider it mostly insignificant. Enjoy! Disclaimer:Costsoccurinmanyforms.Thecostsonthefeescheduleareoneofthosecosts,butothersmayincludethesizeoftheorderbookspreadororiginationcosts.
EcomToken: The Ecom Platform Born To Simplify The Operation With Crypto
Global adoption takes its course and continues to expand a new trend shift. In the age of data, privacy, and other Internet-related issues, we are witnessing a progressive crypto boom during 2019 that focuses on simplifying and expanding ecosystem services and applications. In this line of events, the Ecom platform presents version 4.0 of its wallet. For those interested in downloading, it can be found in the App Store (iOS), Google Play (Android), and APK File (Android). The wallet is compatible with the storage, reception and sending of contrasted cryptocurrencies and tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Binance token (BNB), 0x (ZRX), Maker (MKR), Basic Attention Token (BAT), Huobi Token (HT) and VeChain (VET). It also has secure, stable tokens (stablecoins) such as True USD (TUSD) and USD coin (USDC). In addition to offering a range of pairs that will grow progressively, the wallet is compatible with cash withdrawals, receipts, and other functions including exchanging with the ECK token quickly. All complicated operations become waiting-free and straightforward for users, thanks to a system managed by artificial intelligence (AI) and EcomToken’s smart contracts. Automated technology for fast order management with BotTrader Through the Ecom wallet, the platform can tokenize all products bought and sold in the system; mainly thanks to the exchange pair in its native ECK token. The ECK/BTC swap pair will provide a good part of the liquidity and will activate the artificial intelligence gear that makes quick exchanges happen. This type of automation guided by smart contracts will feed an entire order network that will make the BotTrader service possible. BotTrader offers an easy way to manage a wide range of orders. From placing a single order to thousands of them; by this, we mean wholesale orders (whether buy orders, sell orders or both). By offering this service, scanning low point purchases on all pre-programmed exchanges are automated. Combined with automatic market scans, BotTrader also scans the upside outlets on those exchanges. When there is a price difference, the opportunity to arbitrage the price appears, and BotTrader performs thousands of trading orders at both ends with the price difference. Therefore, BotTrader not only facilitates maximizing the profit potential for the users but also has liquidity characteristics for the user’s portfolios. Virtual and physical cryptographic card By obtaining a reliable and instantaneous liquidity base, the system will support the payment network planned in the technical documentation. On society, we can see how the cash in bills and coins is beginning to be margined. Smart device wallets and personal bank cards capture a large percentage of the total spend on normal operations. It is for this reason that a system designed to support thousands of operations needs simplification in the use of stored funds. The ecosystem is designed to be able to withdraw funds from the portfolio at any time. Either through withdrawals or payments. When it comes to payments, Ecom’s virtual and physical cryptographic card offers the versatility and convenience of everyday life. Linked to its platform account, it provides the comforts of traditional systems; so the adoption barrier seems to fade over time. The distribution and technology of the ECK native token The native token of the project is the ECK token, being a utility type token. The platform focuses on trade and therefore will not own a blockchain itself, has been chosen Ethereum, being the most adopted for platforms of its kind. As a utility token under the ERC20 standard, it offers general uses to release every one of the platform’s functions. For a fair and equitable distribution, a token acquisition plan and percentages assigned to the token sale, reserve, reference program, core team, partners, and advisors have been devised. The total market offer is 101 million ECK tokens distributed based on the following proportions: · Tokens are offering — 38%. · Referral Program — 25 · Reserve — 22%. · Team, partners, advisors — 15 Allocation of the funds collected in the sale of the token An internal fund allocation plan accompanies the distribution of the tokens described above. This plan is posted both on the website and in the corresponding technical documentation. We proceed to break it down: · Technological development 15%. Technology, products for the platform, new products, and updates of ecosystem characteristics. · Commercial development 15%. This is one of the pillars of the project, even more so in the newly created company phase. It is orienting to implement a brand image recognized, respectable, modern, and backed by an active user base and constituting business development by building value-added joint ventures with industry leaders. · Marketing 10%. Global promotion and orientation of the EcomToken ecosystem. It also ensures visibility in the sector. · Operations 40%. Active financing of the necessary operations and legal bases, as well as advice, are required to start. The planned robust infrastructure will lay the groundwork for a stable future for the ecosystem in the medium and long term. This ranges from liquidity for automated operations to the maintenance of excellent performance, legal assistance, and customer support. · Ecosystem development 20%. The secured funds guarantee the complete development of the Ecosystem offer the peace of mind of remaining outside the funds allocated for liquidity and other diverse goals. Therefore, developers and ancillary teams will be able to stay focused on the development and implementation of a seamless global ecosystem. Can the native ECK token be mined? The issue model of the ECK token is not linked to PoW mining. Instead, Token Holders will be encouraged to maintain them through a daily interest. Platform users can deposit ECK tokens into EcomToken’s portfolio to enjoy the resulting calculated interest regularly. This model promotes the adoption of the token by withdrawing it from the markets to the user’s portfolios. This and other initiatives seek to establish a strong base of users and early holders. To calculate the daily interest to be received, the value of the conversion to US dollars (USD) will be taken as a reference; that is, the ECK/USD pair will be calculated. According to this exchange rate, the daily interest to be received will be calculated. Note that the reference source for obtaining the price will be taken from the metrics publicly exposed in Coinmarketcap.com. Partners: ECK Tokens will list on big Exchanges on Coinmarketcap as: Sistemkoin, BTC-Alpha, Bancor, WhiteBit, Probit, Token.Store… Investors and traders can trade ECK when listing · EcomToken Web — https://ecomtoken.com/ · Telegram — https://t.me/globalecomtoken · Twitter — https://twitter.com/TokenEcom · Facebook — https://www.facebook.com/global.ecomtoken · Youtube- https://www.youtube.com/channel/UCKyjFWsd1VNxZx_wgCO4WzA BOUNTY : Video Review and make Pictures Get 5 ECK for make Pictures with Screen ecomtoken website/EcomToken app Get 8 ECK for make Pictures with your friends (from 3 friends) with screen ecomtoken website/EcomToken app Get 10 ECK for make Pictures with your friends (from 5 friends) with screen ecomtoken website/EcomToken app Get 20 ECK for make video review ecomtoken projects (say where are you from, how old are you, and why you interesting in EcomToken Special: Top 3 awards for the most votes from the organizers: In Pictures 1 Prize 1: 100 ECK 2 Prize 2: 50 ECK 10 Prize 3: 10 ECK In Video Review 1 Prize 1: 500 ECK 2 Prize 2: 200 ECK 10 Prize 3: 100 ECK Please submit your works in the submission form: https://drive.google.com/open?id=1niidisZ2wRMaMZaPtqKNL6N9XyX6NUVSlvagwEUgZgk Spreadsheet: https://drive.google.com/open?id=1ymfm58X0eiIsljD1duCLSl2KkLMcn0hrlkXPdB8mMNs
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