Best TruStories of the Week - #7


#1

Please use the below format:

Claim:

Category: (see below)

Source:

Argument/Evidence:

Status: Unconfirmed or Confirmed or Rejected

For categories, select from one the following:

  • Crypto glossary
  • ELI5 for crypto
  • Projects (Bitcoin, Ethereum, EOS, Stellar, Brave, etc.)
  • Regulation
  • Mining
  • Scaling
  • Use cases
  • Scams
  • Stablecoins
  • Governance
  • Consensus protocols
  • Privacy & Security
  • Enterprise blockchains
  • Crypto funds & fundraising
  • Token Economics
  • Markets

If your claim doesn’t fit into any of these, you can request to add a category and we’ll consider it.


#2

Claim: Cryptocurrencies and blockchains allow for publishing content without a centralized authority. No single point controls what is and is not published. This means that a blockchain will not have any political agendas or special interests which might skew content or restrict it completely.

Category: Use cases (could create new category called Political censorship)

Source: https://toshitimes.com/importance-of-crypto-in-political-censorship/

Argument/Evidence: I agree with Justin Caldwell from Toshi Times and Ivan on Tech. Ivan says if Jordan Peterson does not get a decentralized Patreon-like service, it will fail again since all centralized platforms need to use PayPal and/or banks that has a middleman and they care about what other people say. These centralized platforms reject people who have a bad reputation for having opinions that are far right or left.

Ivan says there is a smart contract on Ethereum and one can create a blockchain based and decentralized platform with subscription feature so that a certain amount of crypto can be paid to an author or content creator once a month.

This could also help content creators like Andreas Antonopoulos who is a big proponent of Bitcoin (writer of Masterin Bitcoin, etc.). He is still not able to accept bitcoin as sponsorship regularly since he says Patreon works better because it’s more consistent and he needs consistency for his employees.

Status: Confirmed


#3

Claim: Bitcoin and Ethereum weekly trading volume reached 7-month highs

Source: https://www.theblockcrypto.com/tiny/bitcoin-and-ethereum-weekly-trading-volume-reached-7-month-highs/

Category: Markets

Evidence/Analysis:

Claim 1: Bitcoin’s weekly trading volume reached $46 Billion while Ethereum reached $18.5 Billion in the week of December 17 to December 23.

Claim 2: The last time weekly trading volume was higher was in early May.

Extracting BTC & ETH daily volume data of year 2018 from CoinMarketCap, I calculated the weekly volume for each weekly interval, shown in the graphs below.

BTC: Week (Dec 17-23) reached ~$46B and the last time higher was Week (May 7-13) ~$50B.
ETH: Week (Dec 17-23) reached ~$18.5B and the last time higher was also Week (May 7-13) ~$21.2B.

Despite the numbers in both claim 1&2 are valid, need to keep in mind that because it is sourced from CoinMarketCap, the volume did not reflect trading in OTC markets.

Status: Confirmed


#4

Claim: At Least 340 UK Crypto or Blockchain Companies Ceased Operations in 2018

Source: https://cointelegraph.com/news/at-least-340-uk-crypto-or-blockchain-companies-ceased-operations-in-2018-report-finds

Category: Use cases

Evidence/Analysis:

From OpenCorporates database, searching UK company names with keyword “blockchain” (37 dissolved), “crypto” (138 dissolved), “bitcoin” (156 dissolved), “ethereum” (12 dissolved) shows that >343 companies have dissolved. However, only what it does not show is whether these companies actually dissolved in the year 2018 or not.

Status: Confirmed


#5

Claim 1: Nvidia hit with class action lawsuits following the cryptocurrency crash

Claim 2: Nvidia stock is now down more than 50% and it is still plummeting.

Source: https://www.techspot.com/news/78060-nvidia-hit-class-action-lawsuits-following-cryptocurrency-crash.htmlate of Claim:
Note* Both claims are in the same source.

Category: Markets

Evidence/Analysis:

Evidence for Claim #1: Class action taken, but not legally certified: https://www.businesswire.com/news/home/20181224005122/en/EQUITY-ALERT-Rosen-Law-Firm-Announces-Filing

Evidence for Claim #2: A screenshot showing USD value on Nov 1, 2018, at $289.36 and on December 31, 2018, at $133.50

Link:

Status: Confirmed


#6

Claim - ICE Exchange’s Bitcoin/Crypto startup raises $182.5 mn to build a global digital assets platform and bitcoin futures product

Category – Crypto funds and fundraising

Source - https://www.coindesk.com/182-million-ice-exchanges-bitcoin-startup-bakkt-announces-massive-fundraise

Evidence

Status - Confirmed


#7

Claim: Georgia senator busted for lying about mining crypto at his campaign offices

Category: Mining

Source: https://www.ccn.com/georgia-state-senator-arrested-for-lying-about-stolen-crypto-mining-equipment/

Argument/Evidence: A republican senator from Georgia turned himself into officials because he lied about stolen computer equipment at his campaign offices, which was being used for crypto mining as well as non campaign related business, his investment company.

Williams had said servers with a value of $300,000, which had been used to mine unnamed cryptocurrencies, had disappeared from his office premises, local daily news outlet reported Dec. 20. He was eventually accused of lying to policemen and investigators and filing a false insurance claim concerning the case.

Status: unconfirmed (case still pending. waiting for evidence from prosecutors)


#8

Nice find. I find the 1st link has to be updated.


#9

Claim: Government of Abkhazia Cuts Off Power to 15 Cryptocurrency Mining Facilities

Category: Regulation

Source: https://cointelegraph.com/news/government-of-abkhazia-cuts-off-power-to-15-cryptocurrency-mining-facilities

Evidence/Argument:
As per the official page of RUE “Chernomorenergo” facebook page. This news is confirmed.

Status: Confirmed

Reference: https://www.facebook.com/chernomorenergo/posts/2346169215611293


#10

Claim: Fortnite Store Accepts Crypto – But Only Monero

Category: Use cases

Source: https://www.ccn.com/fortnite-store-accepts-crypto-but-only-monero/

Evidence/Argument:
The FAQs from both the platform does not list cryptocurrency payments.

From Fortnite FAQ:

BILLING

What payment methods do you accept?
We accept all major payment methods, including but not limited to Visa, Mastercard, Paypal, Yandex.Money, QIWI and more.

From Fortnite Retail Row FAQ:

WHAT FORMS OF PAYMENT DO YOU ACCEPT?
PayPal
Google Pay
Credit cards accepted: MasterCard, Visa Credit, American Express, and Discover cards

I created an account on Fortnite and Fortnite Retail Row to check this claim and find Fortnite Retail Row does have option to pay via Monero through Globee.

Fortnite Checkout:

Fortnite Retail Row Checkout:

Status: Confirmed


#11

This might have been covered before, however there has been a new development in the form of a circular from the govt. of India, hence thought putting it here is important.

Claim: Cryptocurrencies are illegal in India

Category: Regulation

Source:

There are other such articles in India. Most articles start of with - “even though crypto is illegal in India…”

Argument:

The govt. of India submitted a report on Cryptocurrencies in Lok Sabha (House of Commons). The details are in the tweet:

They specially mention again that crypto is “not a legal tender” and the govt. is still evaluating how to regulate it effectively. Trading or holding crypto is not illegal.

Status: Rejected


#12

Greetings ShreyasJothish,

I just tried to click on the article link, the result is the screenshot in this post. Thank you for noting that the article I posted a link for is no longer available. Here is another article on the topic: https://www.legalreader.com/nvidia-sued-cryptocurrency-fallout/


#13

Claim: Senator Warren voices concern over crypto as she enters the 2020 Presidential Race

Category: Regulation

Source: https://cointelegraph.com/news/senator-and-crypto-critic-elizabeth-warren-enters-2020-us-presidential-race

The senator is known for her criticism of cryptocurrencies, having repeatedly expressed concerns that cryptocurrency consumers could be hurt by scam initial coin offerings (ICOs) while also stating that crypto is “easy to steal.”

Speaking at a Senate Banking Committee hearing in October, Warren asserted that “the challenge is how to nurture productive aspects of crypto with protecting consumers.” The Senator also outlined that American consumers are falling victim to cryptocurrency scammers.

Argument/Evidence: Senator Warren Asks SEC Chairman about Virtual Currency and Initial Coin Offerings

Back in October, we reported that Warren had commented negatively on crypto, expressing her belief that digital currencies are too easily stolen, and that initial coin offerings lead many small investors into scams. In February, Senator Warren outlined a lack of sufficient crypto regulation following the SEC’s decision to consider certain currencies to be securities, noting that companies had raised “over $4 billion” in unregistered ICOs.

“When companies don’t register their tokens as securities, they can hide information and the SEC does not have the information it needs, to monitor this market.” she said in a video posted earlier in February.

Status: Confirmed


#14

Claim: Crazy price manipulation movement (pump and dump) on Paragon

Category: Cryptocurrency

Source: https://coinmarketcap.com/currencies/paragon/

Arg/Obv: Paragon is a cryptocurrency that targets the cannabis payment market, kinda similar to Potcoin, plus they have a coworking space division.
Source: https://paragoncoin.com/

Arg/Eval: Paragon raise $70millions usd during the 2017 ICO boom, alot of action been show in marketing, not much on the dev side, all their dev team is in Ukraine. I work with Ukranian too so is no problem, but when they are not reachable through their LinkedIn profil that kinda raise a flag.

Arg (-): Paragon as receiving a multiple class action with the SEC and some token holder.
Source:https://bitcoinist.com/paragon-cannabis-down-96/

Arg (+): Apparently they settle their lawsuit with the SEC and as new partnership with cannabis players.
Source :https://cannabislifenetwork.com/paragon-reaches-settlement-with-the-securities-and-exchange-commission-for-prg-token/

Arg/Act: The bullish momentum (SEC settlement) could explain the move a bit, but to have those kinds of extreme move you need some market manipulation. The price already comeback to the previous level which make the case for market manipulation on low volume confirmed.

Status: Confirmed


#15

Claim: A new yen-pegged stablecoin developed by Japan’s second largest bank, Mizuho, will be free to users and retail shops.

Category: Stablecoins

Sources:

Argument/Evidence: There are conflicting reports about the fees (or lack thereof) related to transacting with yet-to-be-created or named stablecoin. The article from Finance Magnets above clearly states that "users and retail shops will not be charged a fee on the cryptocurrency transactions, including transferring funds between their smartphones and bank accounts or sending funds to other users or the shops’ corporate bank accounts. They later confirm the lack of fees by adding that “in return for providing the service for free, the banks would benefit by collecting more data on consumer spending patterns.”

However, the reporting on this by Cointelegraph, Asia.Nikkei. and others, state some variation of “retail shops using the currency will be charged fees significantly lower than for credit card services.”

From what I gather, purchases by consumers will be free. And coin-to-coin and coin-to-fiat transactions will be free for consumers and retailers, but retailers will pay a fee to in order to accept payment via the new coin. Although the coin won’t launch until March of this year, and changes in the fee details may take place by then, as it stands now, this claim is rejected.

Status: Rejected


#16

Hey Bruno, this reads more like an analysis for a prospective investor. That’s valuable work but I don’t think it’s a valid TruStory claim.

“Paragon’s price increases by 7000% after an SEC settlement” is a claim you can support. It’d be tough to attribute the meteroric rise to just that activity, but until we have more intel (which we can always go back to add that later), this seems valid for TruStory.

Curious what others think.


#17

I agree. The claim “Crazy speculative (DLH +7000%) move on Paragon” would get Flagged for ambiguous. Your suggested updated claim “Paragon’s price increases by 7000% after an SEC settlement” is better and a validatable claim.


#18

Claim: ““Mining” for Bitcoins is just as energy intensive as mining for gold and other precious metals, a new study finds.”

Category: Mining

Source: https://cosmosmagazine.com/technology/mining-bitcoin-is-as-energy-intensive-as-mining-gold

Argument/Evidence: “It takes between seven and 14 Megajoules (MJ) of energy to create a US dollar’s worth of cryptocurrency, more than the energy required to physically mine for a dollar’s worth of copper or gold, say Max Krause and Thabet Tolaymat, from America’s Oak Ridge Institute for Science and Education, in a paper published in the journal Nature Sustainability.”

Status: Confirmed


#19

Claim: Blockchain technology brings two specific feature innovations to networked computer systems:

(A) a decentralized immutable environment

(B) a tokenized program of incentives

Category: Scams

Source: https://blog.goodaudience.com/identifying-decentralization-60a2ae03280f

Argument/Evidence: It’s important to understand true blockchain technology requires that there be complementary implementation of both features within an open-source framework. This is because a cryptographically secure environment spread across various computer systems (laptops, desktops, etc.) must use some mechanism for infrastructure maintenance. The only program that currently incentivizes such maintenance is the cryptographically secure token model.

Status : Confirmed


#20

I know… those kind of claim are just fun to be catch in real time, after the fact is a bit boring.