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"Buckle Up" For Bitcoin's Next Bull Run, Cameron Winklevoss Says

Gemini CEO and co-founder Cameron Winklevoss believes that the next Bitcoin bull run coming up will be “dramatically different,” due to the innovative financial resources that crypto investors have access to nowadays and to the current economic infrastructure.

Winklevoss Anticipates Next BTC Bull Run

Compared to previous bull markets, the billionaire crypto philanthropist said that with the rise of infrastructure, the influx of capital, and better projects at hand, Bitcoin (BTC) is set for its next bull run:

“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”

The Winklevoss brothers are on the same page regarding Bitcoin. Last week, Cameron’s twin brother and co-founder of Gemini, Tyler Winklevoss, commented on the US Federal Reserve’s economic stimulus strategy having a positive impact on Bitcoin and its pricing on the crypto market. Winklevoss stated that the Federal Reserve had set the stage for BTC’s next bull run. He referred to the fact that the US government is actively printing money in bulk in order to deliver an economic stimulus package to its citizens, to provide pandemic relief.

Americans Use First-Time Stimulus Check for BTC

What seems to be interesting however, is that according to a report by Coinbase CEO Brian Armstrong, instead of using their funds towards goods and services, many Americans directd their first-time stimulus checks of $1,200 towards investing in BTC funds.

So despite coronavirus and the economic downfall happening worldwide, things appear to be looking up for the cryptocurrency market. Data points hint that crypto investors’ capital have been on the rise. Furthermore, with the increase in regulatory policies and the clarity of them, the infrastructure of the crypto market has been improving considerably.

Why Was More Money Involved In the Last BTC Rally?

Researchers looked at two key points to explain why more money has been involved in the latest Bitcoin rally, where the dominant cryptocurrency underwent a huge surge.

First of all, Tether(USDT), the market capitalization of Tether, the biggest stablecoin on the cryptocurrency market, has surpassed $10 billion in assets. Secondly, Grayscale Investments, the big-time cryptocurrency investment firm, has recently achieved a new high in the Assets Under Management (AUM) department.

Stablecoin Tether On Top of Its Game

Tether has been up to now the biggest stablecoin on the crypto market. Investors worldwide have therefore relied a lot on the stablecoin to trade crypto. Countries with poor regulatory policies revolving around cryptocurrency regulation have favored Tether, as it is a stablecoin. With the rise in market cap of Tether to $10 billion, this may mean that cryptocurrency exchanges might be on the brink of a huge money influx, with more funds being used on them.

As to further explain why more money has been involved in the latest BTC bull run, researchers turn towards Grayscale’s crypto-asset trusts as an explanation. The crypto asset trust funds of the large-scale investment firm are arguably the most utilized investment vehicles employed by businesses and networks looking to gain exposure to cryptocurrencies.

Grayscale Investments Reaches $5.1 Billion

Recently, the assets under management by Grayscale Investments have achieved a new record, reaching an all-time high of $5.1 billion.

On the subject matter, CEO of Grayscale Investments, Barry Silbert, said that Bitcoin has too much support from US government officials to ever be dismissed and shut down. The CEO thinks that blockchain firms’ success with regulatory policies put forth by officials can be attributed to pro-blockchain groups, such as Blockchain Association. The latter is a group who has advocated for digital firms by appealing to the US Securities and Exchange Commission in the past.

Silbert thinks that the blockchain industry has come a long way, with more and more investors looking at Bitcoin as an interesting hedge. In a Twitter post, he spoke about his own personal experience with his cryptocurrency investment firm. Silbert said that in 2013, when his company launched a Bitcoin investment fund, everyone thought they were crazy. “Well, look at us now…,” he added.

This Week’s Bitcoin Bull Run

Overall, projects and companies in the Bitcoin and crypto industry seem to be increasing in quality. With the latest Bitcoin rally that happened earlier this week, there seems to be an indication that the cryptocurrency industry is on the rise. Bitcoin surged past the $10,000 mark on Monday, creating a buzz in the financial industry.

CEO of financial consultancy firm deVere Group, Nigel Green, was even bold enough to state that the cryptocurrency is set to potentially “knock gold from its long-held position” of being a safe-haven asset.

Image source: Shutterstock

Coronavirus Measures in China Delay Crypto Hardware for MicroBT and Bitmain Customers

The coronavirus is causing mass disruption throughout Asia and has now been declared a ‘global health emergency’ by the World Health Organisation. The Chinese government has taken drastic isolation measures, and over 40 million people are effectively on lockdown.

One of the leading manufacturers of crypto mining hardware, MicroBT recently notified customers via WeChat that their shipments would be delayed at least a week because of the coronavirus quarantine in China. One of the preliminary measures by Beijing was to extend the Chinese New Year holidays to keep citizens at home.

The notice said that customers of Shenzhen based mining hardware manufacturers should expect delays in “the production, delivery, after-sales service, and send and receive documents and other arrangements.”

In an article published yesterday by CoinDesk, Artem Eremin, Product Manager, 3Logic said that Bitmain and Canaan had also notified himself and other customers of similar delays.

Coronavirus Could Disrupt Entire Crypto Market

Traditional markets have been suffering since the discovery of the Coronavirus on Dec. 1. As previously reported by Blockchain.News, crypto research firm Chainalysis believes that the outbreak of the virus could have ripple effects throughout the crypto market. China is a notable crypto investment hub, as it houses the most crypto exchanges in the Asia-Pacific region, which has 40 percent of the world’s top 50 exchanges.

Jason Wu, the CEO of crypto lender DeFiner, admitted to canceling a dozen meetings with his crypto clients in China after the outbreak. He said, “We planned a 10-city tour to talk with potential clients in China. Nobody wants to attend any crypto-related conferences or any meetings at all because of the virus. We have to rearrange everything.” The coronavirus’ potential disruption of business may have an impact on crypto prices, as professionals such as Wu are concerned.

The coronavirus has reportedly killed 213 people so far, with more than 9,817 infected worldwide.

Image via Shutterstock

Hong Kong Blockchain Startup Bitspark Announces Closure Amid Coronavirus Outbreak and Protests

Bitspark, a blockchain remittance startup based in Hong Kong, recently announced its abrupt closure, stating internal restructuring issues.

The company was co-founded by Bitspark CEO George Harrap and COO Maxine Ryan, a college drop-out in 2014, and quickly became one of the major blockchain-based financial services firm in the Asia Pacific region, serving countries such as Vietnam, Philippines, and Indonesia. Ryan was also named as one of the 30 under 30 in the Asia Finance and Venture Capital category in 2018 by Forbes.

Harrap emphasized the company’s excellent performance a year prior, with the release of its Cash Point product, which has seen 400 percent month-over-month growth.

Although the company mentioned the reasons behind the closure was due to internal restructuring issues, Harrap added, “While the HK protests and now virus epidemic haven’t affected us much, it hasn’t helped either.”

Ryan announced her intention to step down as her position as the Chief Operation Officer. She stated that she made the decision a month ago, she explained, “This paired with the landscape of Hong Kong with protests and the coronavirus where Bitspark HQ is located. The team and shareholders decided this was the best way forward to prevent integrity decay of the company.”

Bitspark users would be able to withdraw their cryptocurrencies from Feb. 3 to Mar. 4, as the company stated that its platform would be available during this period. After this period, account logins will be disabled, and users will only be able to withdraw their funds using the Bitspark customer support.

Image by Tim Mossholder via Unsplash

What Solutions Can Blockchain Bring in Response to the Deadly Coronavirus Outbreak?

The Wuhan coronavirus death toll hit a daily high, with 565 deaths, and 3694 confirmed cases, a slightly lower number than the day earlier. 28,261 cases of infection have been reported worldwide, with most cases confirmed in Hubei province in China.

Syren Johnstone, the Executive Director of the Masters of Law (Compliance and Regulation) Program the University of Hong Kong published a post at the Oxford University Faculty of Law Department blog, stating that blockchain and artificial intelligence (AI) could be the “call to arms for the tech industry.”

Chinese President Xi Jinping previously mentioned that opportunities have been presented by blockchain technology and that the nation should accelerate its development to utilize its full potential. How can this apply to the current crisis?

Donations for coronavirus vaccine research

World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus said a “window of opportunity” exists “to bring this outbreak under control,” given that only 190 cases are confirmed outside of China.

As a part of the WHO’s request for $675 million in global contributions to stop the spread of the disease, Bill and Melinda Gates donated $100 million for coronavirus vaccine research and to protect at-risk populations in Africa and South Asia.

Chinese conglomerate Alibaba started a $144 million fund to purchase medical supplies for Wuhan, the city of the epicenter of the outbreak while offering AI computing power to research organizations for creating vaccines and treatments. Tencent also created a $42.7 million fund for medical supplies to be used in Wuhan.

The current issues with donations and learning from past mistakes

The Charity Law of China was introduced in the country in 2016, to enable the establishment of private charities, to develop the charity field and the interests of stakeholders.

However, there has been concern that the millions of dollars being donated for the public, as well as the protective equipment, are not being put to use where needed, and it has been reported that the equipment has been misdirected.

Beijing has ordered all public donations for the Wuhan coronavirus outbreak to be funneled to five government-backed charity organizations, which automatically assumes that these government-backed charities are all fit for purpose, and would be able to manage in a centralized manner of the recent outbreak.

The Red Cross in China has previously mishandled billions of dollars donated for the Wenchuan earthquake in Sichuan province in Western China in 2008. The Red Cross in China reflected, “One of the lessons learned was that emergency response must be better developed at the local level.”

Johnstone added, “When crises occur they are by their nature large scale, happen quickly and unexpectedly, and become increasingly tragic the longer it takes for an effective response to emerge. The striking concern about the present situation in the Hubei Red Cross is the degree of opacity involved given that the charities receiving donations have a fiduciary and moral duty to apply donations effectively and for the purposes intended.” He suggested that currently, news reports are the only available source of information on how the donations are used, which is not enough.

With the issues in the chain of donations, the public in China has been angered as their contributions have not ended up where they expected, which diverts the objective of addressing the crisis. This, in turn, also impacts the public’s willingness to donate in the future.

How can blockchain help?

According to Johnstone, a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and donees, as well as authorities.

Johnstone, describing blockchain as a “superior tool” for tracking and verifying the origin and the journey for products, made the conclusion that it could be applied to “pretty much anything.” He added that blockchain could also solve the issue of substandard vaccines being mishandled and delivered to Chinese hospitals.

VeChain and DNV GL have been looking into using blockchain technology to enhance drug traceability since 2018. In November 2019, the National Medical Products Administration in China will launch a vaccine tracking system in Q1 of 2020 that covers the whole medical supply chain. Together with President Xi’s endorsement of the technology, blockchain could become essential for finding a suitable solution for the current issues.

Blockchain to ease the fight of patenting the cure of the coronavirus

China has been desperately looking into different solutions looking to cure the coronavirus. Although there has not been any effective cure for the virus, which has taken over 500 lives, progress has been made, where remdesivir is now believed to be the acceptable treatment of the virus.

Remdesivir was originally developed to treat the Ebola virus; however, it was not effective. Preclinical tests suggested that the drug may be effective against the coronavirus, and was given to a US patient for “compassionate use” and the patient’s condition was improved the next day.

The Wuhan Institute for Virology in China has applied to patent the drug, which is being developed by Gilead Sciences and is currently in Phase III of its clinical trial to assess the use of the drug for the treatment of the coronavirus.

However, a spokeswoman for Gilead Sciences said that the company invented the drug, and filed patent applications for the drug to be used against coronaviruses globally, including China, in 2016.

In situations like these, where there may be a contest in a patent or in securing intellectual property rights, blockchain could become the answer for the management of these rights. An immutable record of events, where the first entity to create the drug, could be added on the blockchain to avoid the duplication of patents for the same drug.

Could Bitcoin and Blockchain Be Affected by the Coronavirus?

As blockchain has spread in the global industry, the coronavirus has begun to follow. Unfortunately, rather than offering freedom and independence, the disease brings uncertainty and risk.

To help stop the spread of the virus, many businesses are implementing measures to aid and help employees avoid contact with others, as the disease is said to be passed on through body substances found in sneezing and coughing. Large companies have been asking people to work from home and even ask if anyone would like to leave certain high-risk countries and work remotely from their birth country. People in Hong Kong, China, and other Asian countries would be largely at risk, and the offer to leave is certainly important to factor in.

With workforces all feeling the effects of the problem, it is certain that businesses will be feeling slowed down processes and overall performance as well.

Blockchain mining and the Bitcoin platform

Economies will be hit hard, feeling effects from staff and sourcing as well as customer dips in spending. Major businesses including even Apple, are expected to incur massive losses to growth and overall earning during this period, with a senior analyst stating, “Were it not for the coronavirus, the sustainability of the performance in China would not be called into question … (It) is an important risk that investors need to monitor.”

Businesses expect to see major roadblocks and problems from the virus, but this is not just a problem for the very best and rich companies. Small to medium businesses are most at risk, as cash flow and month to month income can be crucial to survival. Some businesses were already struggling in the current economy and a setback in spending from customers due to fear would be the final nail in the coffin.

Blockchain mining, despite all of the problems, is operating and expected to continue at close to normal due to machines being the main source of power providing Bitcoin and all other cryptocurrencies the foundation to run.

Mining factories require and usually have limited employees, leading to quick turn around and machine maintenance. Reports did share that some businesses waiting on new computing chips and supplies have needed to adjust, but that most facilities have operated as normal.

If the coronavirus does continue to cause shortages and provide more restrictions, it is certainly possible that all areas of mining would come under attack, due to the upkeep of machines and parts.

During the past few weeks, the crypto markets have continued to grow. Bitcoin, as well as other top currencies, continue to hit yearly highs in spite of viruses and health fears.

With the cryptomarket showing strength, maybe it will be able to outlast this latest health scare and not follow other traditional stock markets that have seen a sharp decline, showing a 9% drop across Chinese Indexes.

Image via Shutterstock

Positives Out of the Wuhan Coronavirus: Blockchain Educators in the City

For many outside of China, the city of Wuhan is now identified as being ground zero for the recent outbreak of the coronavirus, but some amazing innovation has come out of China’s seventh biggest city in recent years.

Already established as a major motor manufacturing hub, the region is also making waves in the blockchain space and pressing ahead with educating about the technology in centers.

Based in Wuhan, Tech4 Blockchain is going from strength to strength, supporting the vibrant blockchain community in the province and it has formed close ties with the blockchain center of the Zhongnan University of Economics and Law Wuhan.

Local governments in cities like Wuhan are eager to boost innovation and cultivate the next big technology unicorns, pledging millions to build high-technology parks and offer tax exemptions to big companies willing to open up offices and bring talent to the region.

Even before President Xi Jinping’s support of blockchain was revealed, over ten universities in China have launched blockchain courses including a research center in Hainan province which is working with University College, Oxford in the UK to jointly promote technology and develop expertise. This joint approach is fantastic news for both countries however for the dissemination and sharing of knowledge to truly prosper, more cooperation between public and private sectors is needed. China’s digital currency will be a key enabler, not just for a new host of financial products but by bringing never seen before levels of automation, between suppliers, manufacturers, and consumers.

This, combined with the fantastic opportunities to digitize trade finance and supply chains that will emerge from the Belt and Road Initiative is extremely exciting.

Image by CDC via Unsplash

Legend of Wuhan Coronavirus Whistleblower Will Live Forever on Ethereum Blockchain

Li Wenliang was an ophthalmologist at Wuhan Central Hospital who became something of a national hero amidst the turmoil of the Coronavirus. His legend has only been further galvanized following his recent death where he succumbed to the dreaded virus.

According to the Washington Post, the Chinese doctor was silenced by police and charged with “rumor-mongering” after he tried to share news of the Coronavirus outbreak prior to Chinese health authorities coming to terms with the severity of the spread of the disease. Here is a copy of the original letter he received from the Wuhan police.

While Li’s attempts to warn his country about the deadly disease was met with anger from the Chinese Communist Party, there was an equally vicious outcry by the people who grow tired of the CCP’s censorship solutions to most of their problems.

Immutable Ethereum Monument

On Jan. 31, someone honored the late Dr. Li Wenliang when they created a smart contract on the Ethereum blockchain, aligning the source codes in the shape of a monument in his memory.

The source code of the Monument describes the life of Dr.Li and honors him for his defiance of the CCP censorship to alert the public to the dangers of the virus.

The monument that now exists on the Ethereum blockchain will serve as Dr. Li’s last act of defiance, as his memory will now be preserved in blockchain immutability. The story of his courage and compassion for his people at his own risk will now live forever beyond the scope of those who would seek to censor the truth.

Blockchain for Greater Transparency in China

As previously reported by Blockchain.News, there has been concern that the millions of dollars being donated for the public, as well as the protective equipment to combat the outbreak are not being put to use where needed, and it has been reported that the equipment has been misdirected.

Syren Johnstone, the Executive Director of the Masters of Law (Compliance and Regulation) Program the University of Hong Kong has recently suggested that a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and receivers, as well as authorities.

Image via Hong Kong Free Press

Insurance Firms in China and Hong Kong Count on Blockchain to Fast Track Coronavirus Claims Amid Outbreak

With 27 mainland Chinese cities on lockdown, insurance providers have been relying on blockchain technology to fast track claims payouts during the coronavirus outbreak,which has taken over 800 lives, surpassing the death toll of the severe acute respiratory syndrome (SARS) in 2003.

Xiang Hu Bao, an online mutual aid platform, a subsidiary of Ant Financial, is a “collective claims-sharing mechanism built on blockchain that offers basic health plans to its 104 million participants.” Most of its users are Chinese citizens from lower-tier cities, and in rural areas. By utilizing blockchain technology, settlements have been made more efficient, and fraudulent claims have been reduced.

The platform is also available on Alipay, another product owned by Ant Financial. The payout for coronavirus claims will be funded with Ant Finacial’s capital, apart from the other 100 critical illnesses that the users of the Xiang Hu Bao are eligible for.

According to the South China Morning Post, an Ant Financial representative from Beijing said,“Xiang Hu Bao has been able to process claims and make payouts to participants quicker, due to the decentralized, trust-free nature of blockchain technology. Claim applicants can submit their supporting documents as evidence while investigation firms can get immediate access to them on the blockchain. All parties involved can see the entire process.”

Blue Cross: Helping to ease pressure on healthcare services in Hong Kong

With over 30 confirmed cases in Hong Kong and one death, Blue Cross Asia Pacific Insurance, a subsidiary of the Bank of East Asia has been shortening the time spent on data verification. Its blockchain-based platform, which is able to handle more than 1,000 concurrent transactions in one second without human interaction has been helping to ease pressure on healthcare services in Hong Kong.

The platform has been launched since April 2019, there has been a record of double-digit growth of the number of policyholders using the app. By helping medical service providers to reduce the time spent on administrative duties, blockchain has been proven to be essential during the Wuhan coronavirus outbreak.

“Our blockchain-backed claims service has played a key role during the outbreak of the coronavirus by totally eliminating the paper process and the need for back-and-forth documents delivering to clinics. This really helps to mitigate the risk of infection from face-to-face contact,” said Patrick Wan, Managing Director of Blue Cross.

Insurance and blockchain go hand in hand

CB Insights Research indicated that although it is too early to tell whether blockchain technology can overcome the “legal and regulatory hurdles” to be adopted in the insurance industry, the “possibilities are endless, and insurance companies and startups alike are exploring insurance applications for the technology at full throttle.”

Insurance fraud has been costing the industry $40 billion a year, leading to higher premiums and worse coverage for consumers. By moving insurance claims from paper contracts onto a distributed and immutable ledger, blockchain can enable the elimination of fraud in the industry, which has been costing $40 billion a year.

Etherisc is a blockchain-based insurance product, powered by smart contracts, which was launched in October 2017, allowing passengers to purchase travel insurance using cryptocurrency or fiat (USD and Euros). Payouts were automatically transferred to the participants after a qualifying incident.

Blockchain used for coronavirus donations

Chinese conglomerate Alibaba starteda $144 million fund to purchase medical supplies for Wuhan, the city of the epicenter of the outbreak while offering AI computing power to research organizations for creating vaccines and treatments. Tencent also created a $42.7 million fund for medical supplies to be used in Wuhan.

According to Syren Johnstone, an academic at the University of Hong Kong, a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and donees, as well as authorities.

Red Alert: Ripple Effects of Coronavirus on Chinese Electronic Manufacturers and Bitcoin Miners

The scourge of the coronavirus has led to the temporary closure of factories in China with the electronic industry supply chain being hit the hardest forcing an extension in the Lunar year holiday following the outbreak of the virus.

Despite quarantine and several measures being actively employed to halt the spread of the virus in China, the outlook is looking bleak for Chinese manufacturersas the year 2020 continues to evolve, with factories seemingly extending the holiday season due to uncertainty surrounding the spread of the virus.

Factories in China are showing their concern about how the situation of the virus could cause a drastic effect on their company. Andre Neumann-Loreck, founder of On-Tap Consulting, a Silicon Valley firm offering advice to hardware companies and startups building products in Asia said, “Clients are making lots of inquiries on ways to address the epidemic.” The effect of the virus is showing huge strain on companies who build hardware or physical products irrespective of the goods being built in China or reliance on China for components and subassemblies to finish the products.

How the uncertainty might unfold

A risk analyst at Resilience360, Shehrina Kamal is of the opinion that the risk and the effect emanating from China is totally unprecedented and such has never been witnessed before, which occurs due to the supply chain already witnessing a week-long setback to reopening of factories.

Getting new workers is seen as a likely issue to arise which could take a while longer to be resolved even after the outbreak has been put under control due to the fact that the majority of the workers of factories in China often travel from the countryside to factories in urban areas.

Although fully functional companies have emergency measures in place to deal with disruptions in production and with adequate planning they should be able to keep production active though at a slower rate than expected with a delay expected in the design and prototyping process well into the holiday season as stated by Swaminathan.

The effect on cryptocurrency mining

The coronavirus outbreak in China may impose a longer-term impact on the Bitcoin network’s mining activity considering the fact that an estimated 65 percent of its Bitcoin computing power is located there.

While Chinese miner manufacturers see rising demand for new equipment ahead of Bitcoin’s scheduled halving in May, it is estimated that the disease may limit growth in Bitcoin mining power if the situation isn’t resolved in the near future because it is difficult to expand or build new machines, according to Kevin Shao, general manager of Canaan Creative’s blockchain arm.

So far, almost every Bitcoin miner maker in China–Bitmain, Canaan, MicroBT, and InnoSilicon – faces delays in production and delivery. Bitmain and Canaan, the world’s top two miner makers by market share, have published notices saying the delay of after-sale services until Feb. 10 due to the outbreak of the disease.

According to crypto research firm Chainalysis, China has the status as a crypto investment hub, as it houses the most crypto exchanges in the Asia-Pacific region, which has 40 percent of the world’s top 50 exchanges.

As the situation lingers, work is expected to start soon as the government, organizations continue the battle to curtail the virus.

Image via Shutterstock

The Birth of the Coronavirus-Backed CoronaCoin Amid Quarantining Banknotes in China

The novel coronavirus, also known as COVID-19 has spread to at least 25 other countries and caused 5 deaths outside of mainland China. Restrictions in Hubei, of the epicenter province of the outbreak, have been imposed further on its citizens. In Wuhan, the city where the coronavirus originated, has been banning its citizens from leaving their homes.

The World Health Organization announced that the future path of the epidemic is “impossible to predict.”

China has also started disinfecting and isolating used banknotes, aiming to stop the spread of the coronavirus. By using ultraviolet light and high temperatures to disinfect bills, banknotes are sealed and stored for around 14 days before recirculating them to the public. The nation’s central bank made an emergency issuance of the four-billion-yuan worth of new bills for the province of Hubei prior to the Lunar New Year holiday.

The birth of a CoronaCoin

Amid the climbing death toll in China due to the coronavirus, the cryptocurrency community has seen the emergence of a new coin–a coronavirus-backed token.

Published first on Reddit, the primary purpose of the token is to spread awareness of the health issue across the board. The CoronaCoin (NCOV), will be an ERC-20 token, and the total supply of the token is based on the world population. With one NCOV token per each person alive globally (7,604,953,650), the token is burnt every 48 hours, according to the number of infections and casualties from the virus.

Controversy over the CoronaCoin

The cryptocurrency community on Reddit also commented on the creation of the token. The community has skewed toward the end of the skeptical spectrum regarding the features of the coin, as the post indicates that investors would be able to benefit from the spread of the virus. A user on Reddit called the token a “shitcoin,” and deducted that “it must be a bull market” as this token made an appearance. Another user had the opinion that the token would “do the opposite” of incentivizing people to spread the disease for the token to gain value.

The token’s website states that a portion of the funds will be donated to Red Cross for “nCov relief,” however, it does not state the precise portion. The crypto community also suggested that Bitcoin would remove the need to quarantine cash.

Red Cross: The issues with donations and how blockchain can help

There has been concern that the millions of dollars being donated for the public, as well as the protective equipment, are not being put to use where needed, and it has been reported that the equipment has been misdirected.

Beijing has ordered all public donations for the coronavirus outbreak to be funneled to five government-backed charity organizations, which automatically assumes that these government-backed charities are all fit for purpose, and would be able to manage in a centralized manner of the recent outbreak.

Blockchain.News previously reported that the Red Cross in China has previously mishandled billions of dollars donated for the Wenchuan earthquake in Sichuan province in Western China in 2008. The Red Cross in China reflected, “One of the lessons learned was that emergency response must be better developed at the local level.”

According to Syren Johnstone, the Executive Director of the Master of Law (Compliance and Regulation) Program at the University of Hong Kong, a private blockchain network would “enable the recording and tracking of anything that is donated, from donation dollars to N95 masks.” By holding the person or organization accountable, donations for delivery could be tracked from the donor all the way to its final-use. Blockchain would also enable transparency for the general public to understand how their donations have been used and its progress. While a private blockchain is strictly controlled, it can also allow for public transparency for donors and donees, as well as authorities.