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Huge Worries As Some Coinbase Customers Express Dissatisfaction Over $10 Maximum Daily Limit

According to ongoing reports and speculation from some quarters in the cryptocurrency world, as regard allegations being brought against Coinbase, the United States San Francesco based cryptocurrency giant exchange and wallet service of restricting some clients to a maximum withdrawal of $10 per day.

A Coinbase user first reported this issue on Reddit about the restriction from Coinbase on Feb. 2. The post on Reddit with the handle of the owner showing Unholy_Crab1 claiming that he reached out to Coinbase to ascertain the reason for the restrictions and to seek an increase for his withdrawal limits, which was duly turned down by the exchange giants.

While sharing proof to back up his claim via screenshot of his transactions and previous attempts to make a withdrawal, The screenshot clearly shows that the maximum withdrawal allowed to him in Bitcoin (BTC) gateway was actually $10.

As at the time the claim was reported,the thread of the post from the Redditor has garnered 40 plus comments, although the majority of comments from other Redditors seem to be tilted in support of the claim while also expressing doubts and skepticism towards Coinbase terms of service so far.

Some users are showing signs of inconvenience as they speculate Coinbase might put into place more related restrictions if prices of cryptocurrency continue to cross the all-time high (ATH) threshold. Other users commented that a withdrawal limitation capped at a meager $10 per day is quite outrageous and could be seen as a total rip off by customers or users of the titanic cryptocurrency exchange.

Coinbase has been duly asked to provide an official statement of their side of the stories to gain clarity into the matter. The Coinbase representatives are yet to respond as users continue to wait to bring the report to closure.

Image via Shutterstock

Reddit Ethereum-Based Rewards Rolled Out on r/Cryptocurrency and r/FortniteBR Subreddits

Reddit has officially begun trials for its Ethereum-based Community Points on two of its subreddits.

Reddit, the popular content aggregating website has created the Community Points to incentivize users to create high-quality posts and comments.

The reward system was first revealed by Reddit user, “MagoCrypto” and will allow each subreddit community to decide how many Points a user receives.

As stated by Reddit administrators, “Community Points are a way for Redditors to own a piece of their favorite communities. As a unit of ownership, Points capture some of the value of their community.”

The Points will help build the reputation of a user in the Reddit community and they can be traded for premium features like badges, custom emojis, and GIFs on comments.

Rewarding Quality Redditors

According to a slideshow presentation published on May 13, it can be difficult for members of the Reddit community, known as Redditors, to know how much other members have contributed.

The total balance of Community Points earned by a user will be displayed next to their name, making it easy to distinguish high-quality contributors from the pack.

Users who wish to contribute and earn will need to create their own ‘Vault’ which comes with a private encryption key. The Vault is stored locally on a Redditor’s smartphone or computer and the Reddit administrators have warned that they will be unable to help if a user loses their key without first creating a back up.

r/Cryptocurrency and r/FortNiteBR

While the rewards are Ethereum-based they are not in the form of its native cryptocurrency, Ether. The Community Points instead leverage the ERC-20 token standards and are managed through “smart contracts”. Transactions are still calculated in ‘Gas‘ which are the smallest units of Ether, but the website has determined that it will cover those costs for now as the majority of its users do not hold any cryptocurrency.

While Reddit did not officially name the subreddit in the slideshow, new posts today on subreddits r/Cryptocurrency and r/FortNiteBR revealed that new tokens, moons and bricks respectively, have been added to those threads.

At the time of writing, r/Cryptocurrency has over 1 million members and r/FortNiteBR has over 1.2 million people in their subreddit community.

Reddit Invites Developers to Submit Ethereum Scaling Proposals for its Token Project

Reddit invited developers to submit Ethereum scaling proposals that can be used to bring Community Points to the site’s mainnet. Reddit, the American social news aggregator made this announcement while confirming it has partnered with the Ethereum Foundation in a bid to create its Ethereum backed Community Points.

The company highlighted the goal of the project which is to find a solution that will support hundreds of thousands of Community Points users on mainnet today and can eventually scale to all of Reddit’s 430 million monthly users.

Key demands for the project

With a lot of hype, the company specifically laid down requirements for its preferred scaling solution. Drawing from the Reddit’s announcement, it read:

Most existing scaling solutions focus on the exchange use case, which favors optimizing for transfers, many of these designs don’t take into consideration the costs of obtaining tokens or entering the scaling system, which can be significant.

This cost minimization factor is crucial as Reddit currently depends on donations from people who believe Reddit will turn profitable in the near future. The company believes there are different solutions to creating a scalable solution and requires developers to prioritize decentralization, usability, interoperability, and open-source designs.

Finding essence in Reddit’s project

With its numerous subreddits, Reddit has been able to help people build communities for obtaining facts and getting reviews about almost any subject. The development of the Ethereum modeled Community Points will help in creating a highly functional community with its own unique structures and operations.

Reddit’s proposed application of the ethereum network negates any doubt that blockchain will find its use in every aspect of life.

Reddit $MOON Tokens Can Now Be Sold For Fiat

Reddit, the social network built upon the interest of its users, launched the $MOON ERC-20 token in May this year. The token is rewarded to users of the cryptocurrency part of the platform for their participation and contribution. These tokens can now be sold for cash, it emerged recently.

Similar to the crypto-based social network platform Relevant, Reddit users earn more $MOON by posting high-quality content to the platform, with $MOON distribution based on the quality and quantity of your contribution.

Users in the r/CryptoCurrency subreddit can use $MOON to unlock exclusive features and have ownership in the community in a governance type utility.

The $MOON ERC-20 tokens run on a testnet version of the Ethereum blockchain, and therefore can’t be swapped for other cryptocurrencies of real value. However, in July, Ethereum developer Austin Griffin devised a method to extract the tokens from one blockchain and place them on another.

This weekend, a Reddit user posted instructions on how to withdraw $MOON tokens and turn them into cash.

By moving tokens from the Rinkeby testnet to the Ethereum sidechain xDai, users can convert $MOON tokens into fiat. The process requires an amount of DAI, ETH, and Metamask to convert the tokens with the use of the xMOON exchange and xMoon tokens.

The news has brought a sense of joy across the Reddit community, with $MOON now being freely exchanged across decentralized exchanges. Decentralized exchange Honeysway has seen More than $402,387 in trading volume of $MOON over the past 24.

Ethereum User Pays $9,500 In Transaction Fees to Send $120 of ETH

A user of the Ethereum blockchain has paid $9,500 in transaction fees to send just $120 of ETH. The user made such a transaction to swap only $120 worth of Ether for a DeFi token.

“ProudBitcoiner”, a pseudonymous account, narrated his plight on Reddit social media platform. The user stated that he mistakenly typed in the wrong transaction fee while trading.

The Redditor used MetaMask, a popular in-browser Ethereum wallet, to swap 0.2922 wrapped Ether (WETH) for 531 Chi Gastoken (CHI) worth about $120 on the Uniswap exchange. He, however, paid an abnormal fee – 23.517 ETH, which is equivalent to about $9,500.

Ethermine mining pool processed the transaction within 30 seconds and collected the fees as miners prefer prioritizing transactions that users have paid higher fees.

Any trading mistakes during cryptocurrency transactions normally are costly and final in nature. The user admitted that he made a costly error.

The Ethereum user said:

“MetaMask didn’t populate the “Gas Limit” field with the correct amount in my previous transaction and that transaction failed, so I decided to change it manually in the next transaction (this one), but instead of typing 200000 in “Gas Limit” input field, I wrote it on the “Gas Price” input field, so I paid 200000 Gwei for this transaction and destroyed my life.”

Gas limit or gas price is the total cost or price that a user is willing to pay for the submitted transaction to be mined on the Ethereum blockchain. It is denoted in Gwei (1 GWei is 10-⁹ ETH).

The Reddit user has contacted the Ethermine mining pool for assistance. He said:

“I contacted Ethermine on Twitter, I contacted their CEO Peter Pratscher on Twitter, I made this post here … I am out of ideas.”

However, Ethermine has not given any response to the user’s request. But the mining company has no obligation to do that. The company would only revert the money back only if they wish to do so.

ProudBitcoiner has still not lost hope. He said:

“Ethermine, because they mined the block my transaction was part of and it’s their goodwill if they want to return this or not.”

‘Dumb Mistakes’ Leading to Costly Crypto Losses

In June, Sparkpool crypto mining company faced a similar scenario when an Ethereum user paid over $2.6 million as transaction fees just for sending 0.55 ETH worth about $133. Such a mysterious incident left the crypto community wondering whether it was the customer’s mistake or there was something fraudulent behind. The customer accidentally mixed up the field on the value of the transfer and fee and eventually paid 10,668 ETH in fees or $2.6 million as transaction fees mined by Sparkpool.

The mining pool company responded to the incident and confirmed their commitment to conducting investigations to understand what led the customers to approve such an overcharged transaction. But Sparkpool revealed that they received the funds after holding them for four days. The mining pool company later clarified that any similar issues in the future would not be subject to any refund or investigation.

Bitcoin is the Answer to True and Free Capitalism, Following Wall Street Bets Short Squeeze

Bitcoin’s price has made a swift recovery after plunging below $30,000, dropping into the $29,600 region. Bitcoin managed to swap the $30,000 back into a support level, and even reached $34,000 earlier today. Bitcoin is currently trading at $32,224 at the time of writing, after having consolidated during the Asian trading hours.

Crypto analytics firm Santiment noted that while Bitcoin dipped below $30k, BitMEX funding rates told the story with their data. Santiment explained:

“Yesterday, as #Bitcoin dipped below $30k, we showed how its funding rate on @BitMEX revealed an increasing amount of traders betting against $BTC. Our data suggested a string of panic sell-offs & bearish sentiment. Read about how the FUD led to the bounce!”

With the recent Gamestop stock soaring due to the Wall Street Bets (r/wallstreetbets) group on Reddit, this brought up a lot of discussion regarding Bitcoin and decentralized finance in the community, especially on Twitter. Anthony Pompliano, the founder of Morgan Creek Digital recently explained in an interview on CNBC’s Fast Money that retailers were right about Tesla, Gamestock and Bitcoin.

Pompliano further elaborated that the retail market participants “aren’t as stupid as Wall Street thinks they are,” after witnessing the soaring of the Gamestop stock, led by the group of Redditors.

While comparing the 2017 cryptocurrency market bull run, it was noted in the interview by Pompliano that at that time, the technology has not caught up to the surge in new market participants in crypto, and that many platforms could not handle it. According to the Morgan Creek Digital founder, the recent “short squeeze” ban from platforms like Robinhood was a specific ban to stop investors from pumping the specific stocks.

With an entire new generation of young people with internet connection who believe that the “system is rigged against” them, Pompliano believes that this cohort would eventually move to a digital and decentralized platform. Pointing to the cryptocurrency market as the new financial system, he added that there are no “circuit breakers,” no specific hours of operation, it is a free market that operates 24 hours a day, and 365 days a year.

Cryptocurrency is a free market, and that’s what true capitalism is, said Pompliano. As a large portion of people in America are looking for a truly free capitalistic market, they are going to find it in the digital and decentralized world, Pompliano concluded.

Ethereum Tapped by Reddit to Bring Blockchain and Scaling Technology to the Online Forum

Ethereum will be leveraged by Reddit, bringing blockchain technology to the online network for the first time ever through their partnership.

Reddit and Ethereum Foundation have partnered up to bring blockchain and scalability to the online forum. Reddit’s admin announced it through a post on the social platform. The partnership is exciting for both Ethereum and Reddit, as the latter has a huge user base, growing by more than 50 million users on a daily basis. Reddit’s admin posting under “u/jarins” explained the goal of the partnership:

“Through this partnership, we will be increasing our commitment to blockchain, accelerating scaling and resources for the Ethereum ecosystem, and bringing the value and independence of blockchain technology to millions of redditors.”

The platform said that it was already pretty decentralized, as users can post, create, and govern their own communities within the network. Additionally, Reddit said that it aimed to “help accelerate the progress being made on scaling and develop the technology needed to launch large-scale applications like Community Points on Ethereum.”

Reddit’s own crypto

Previously, Reddit had dipped its toe in the cryptocurrency realm, having formulated Ethereum-based tokens for two of its subreddits, r/Cryptocurrency and r/FortniteBR. Last May, it launched its native token “MOON”. The token was formulated to reward users of Reddit’s r/Cryptocurrency for their participation in the communal forum.

These tokens could be converted to cash. Redditors could earn more MOON tokens based on the quality and quantity of their content. The higher the quality of their contribution, the more MOON tokens they were able to receive.

Developing Community Points with Ethereum

As Reddit had previously already leveraged Ethereum to create ERC-20 tokens, their partnership now comes as an inevitable development that they both are excited about. Reddit revealed that Community Points, which it introduced last year, will enable users to gain rewards and ownership of their posts and comments. Community Points will be built using Ethereum’s blockchain technology. Reddit now revealed:

“This project is our first attempt at utilizing decentralized technology to empower individuals to have a sense of accountability and more ownership in the communities that they create and contribute to.”

Walls Street's GameStop Battle With Reddit Page r/wallstreetbet Highlights Need for Decentralized Bitcoin

There has been an ongoing frenzy on social media in the past days as the stock market is experiencing an outburst in the valuation of certain stocks including video game retailer GameStop, and AMC Entertainment Holdings amongst others. The shares of these firms have been giving the institutional short-sellers a bit of a headache as the Reddit chatroom r/wallstreetbets (r/WSB) with over 2 million subscribers formed a unifying front to pump the shares of these companies onto profitability, at the expense of the big money Wall Street firms.

The rally has yielded more dividends than can be imagined as GameStop shares have risen by over 1,600% this year, dwarfing the volatility seen in any cryptocurrency including Bitcoin (BTC), and Ethereum (ETH) in the same time frame. The retail rally being spurred by the r/WSB chatroom has also garnered the backing of Bitcoin proponents including billionaire Chamath Palihapitiya, and Gemini Exchange founder, Tyler Winklevoss.

Wall Street is Enraged

Prominent hedge fund managers who are renowned short sellers of the GameStop shares are already at loss amid the growing retail buyup of the shares. The development has spurred an outcry amongst this set of investors who are calling for government intervention into the activities of the r/WSB chatters.

As Justin Amash rightly described it, the big money guys are intolerant to the average man being in control, which is exactly what is ongoing with the GameStop and AMC shares pump. He tweeted;

“The elites don’t want a free market; they want a controlled market that protects their profiteering and keeps you subdued.”

One of the ways the elite are aiming to frustrate the efforts of the r/WSB retail army is first, to shut down the chatroom which is already being attempted, and secondly, by a halt in the trading of these stocks on major Wall Street brokerage firms such as TD Ameritrade. These two moves are such that are backed by the federal regulators who work tirelessly to keep the rich afloat.

The Bitcoin and Crypto Revolution

The GameStop situation gives huge credence to the inherent potential of Bitcoin and cryptocurrencies, in general, to usher in financial and investment equality. The latest bullish rally in the market that saw the market capitalization of the global cryptocurrency industry shoot above $1 trillion was triggered by an upsurge in the activities of both institutional investors and retailers with little or no government interference.

The design of the Bitcoin blockchain to self function has even garnered the praise of Peter McCormack who recently debunked some misconceptions about the cryptocurrency by Bank of England Chief, Andrew Bailey. With what is ongoing on Wall Street today, better advocacy is needed to make more investors see the censorship-free nature of digital currencies and decentralized markets.

Is Dogecoin (DOGE) the New GameStop?

The events happening with respect to the run in the price of the shares of American video game retailer, GameStop has moved many to see the power of owning cryptocurrencies. As Congress moves to hold hearings on the current market conditions, Dogecoin has made a flash bull charge over the last 24 hours with the DOGE crypto price rallying nearly 400%.

What started as a duel between institutional short-sellers and a group of ambitious Redditors organized in the chatroom r/wallstreetbets (r/WSB) has stirred the authorities to back the big money guys on Wall Street at the expense of the guys on ‘main street’ as a Twitter user puts it. This move has angered the Redditors much more.

As the share price of GameStop ballooned to unprecedented highs in 2020 up over 1800%, many brokerage firms and trading apps began halting the trade of the stock, citing the need to protect their customers from imminent losses. The short-sellers had already lost over $5 billion on GameStop since the unifying push by the r/WSB chatters to pump the stock price and the authorities could not have any more of the big money guys lose more cash.

Now the trading platform most trusted by the people, Robinhood has joined the others in halting the trade of GameStop, bringing a remarkable blow to the r/WSB retail army to push the stock price to $500 per share.

The Turn to Crypto and Dogecoin

Seeing the state is coming to the rescue of the short-sellers, the retail army on r/WSB and Twitter apparently decided to turn to cryptocurrencies, the emerging investible asset class that is free from censoring. In a double twist, Dogecoin seems to be the coin the angered investors decided to pump its price.

Following this unprecedented promotion of DOGE, the coin has soared in the past 24 hours, rallying as much as 374% to an intraday high of $0.056 according to CoinMarketCap. Doge is currently trading at 0.043 at the time of writing.

The push in the price of DOGE has zoomed it past a number of the top digital currencies and it is now ranked as the 10th largest cryptocurrency by market capitalization.

Attempts to pump the price of Dogecoin have been made before and perhaps, the zeal of the r/WSB and Twitter retail investors may push Dogecoin to hit $1 in the coming days.

Image source: Blockchain.news

Bitcoin Subreddit Surges as Hedge Funds Short BTC, A Coordinated Crypto Buying Attack?

Will Bitcoin be the next target of a coordinated buying attack as new data reveals Bitcoin subreddit’s astronomical growth as well as huge institutional shorts on the cryptocurrency?

Bitcoin price has come down from its weekend surge to $38,000 following Tesla founder and CEO Elon Musk giving the cryptocurrency his endorsement.

The surge allowed Bitcoin price to finish last week slightly higher. Despite a rebound in strength for the US dollar, the new weekly session has begun on a positive outlook. Bitcoin was up 1.47 percent, trading slightly above its short-term support level of the 20-day exponential moving average of $33,461.

While there are no big events coming up for Bitcoin, some interesting data reveals that BTC may be in for a WallStreetBets style coordinated buying attack—as hedge funds have shorted Bitcoin and one of the most well-known online Bitcoin communities passed two million subscribers in a surge of activity on Friday.

r/Bitcoin Grows Exponentially

Coordinated buying attacks are multiplying and spreading throughout the cryptocurrency sector inspired by members of a Reddit Forum called WallStreetBets.

Source: Metrics for Reddit

As WSB traders put the short squeeze on hedge funds with their coordinated buying attack on GameStop and AMC stock last week, exchanges came under pressure to halt retail trading. The Reddit discussion group r/Wallstreetbets, then focused its army of investors put the squeeze on silver and a selection of decentralized cryptocurrencies starting with Dogecoin (DOGE), then XRP and it appears Bitcoin is building momentum on Reddit as well.

Source: Metrics for Reddit

Since the 2017 Bitcoin bull run, the growth of the subreddit r/Bitcoin has been gradual—however following the media attention over the r/Wallstreetbets subreddit the Bitcoin subreddit membership has risen exponentially with more than 250,000 accounts subscribing to the page between Jan. 26 and Feb.1, from 1,982,681 to 2,221,348.

Additionally, hedge funds have been increasing their Bitcoin short positions—effectively bets that the price of an asset will fall—since the Bitcoin price began surging in October. New data has revealed hedge funds are short bitcoin to the tune of more than $1 billion, even as retail traders pile into bitcoin and other cryptocurrencies. According to the CFTC’s latest Traders in Financial Futures report the net short position in Bitcoin futures is now the biggest it has ever been—making the market more attractive to groups like WSB for a coordinated buying attack on Bitcoin.

Bitcoin May Be Going into a Rapid Ascent

While Musk’s endorsement sent the Bitcoin price surging briefly it has also more importantly added a concrete price floor above $30,000. And the possibility of day traders’ army attempting to manipulate other cryptocurrencies into growing higher, as they did with Dogecoin. The question remains: will the frenzy hit the Bitcoin market, sooner or later?

Paolo Ardoino, CTO at Bitfinex shared his thoughts on Bitcoin’s continued ascent over the weekend:

“Bitcoin may be going into another rapid ascent. An increasing recognition of Bitcoin’s distinctive traits should outlast the current GameStop interest. While nascent, cryptocurrencies have the potential to invert the power structure of inequitable financial markets that are weighted against retail investors.”

Ardoino also spoke with Blockchain.News on the chaotic market conditions exposed by WSB and its attack on GameStop and AMC:

“A little ignored fact is that technology underpinned the financial crisis of 2008. It was technology that linked the sub prime debt to the esoteric derivatives products that so spectacularly blew up. In a similar vein, it is the democratization of technology that has accelerated the GameStop short squeeze. The cat is out of the bag. I won’t speculate on whether this is a one-off event or not, but I’m confident that these types of social channels have the potential to cause further disruption to the status quo and challenge the financial elite.”

With no big events set for Bitcoin this week, will the market frenzy be enough to send the Bitcoin price higher? BTC is currently trading at $33,783 and is up 0.26% in the last 24 hours according to CoinMarketCap.