It’s a case of the Tuesday blues for bitcoin. These are the stories you need to know in crypto for Tuesday, July 10.
Price Falls Flat
Bitcoin stumbled more than 4% by afternoon action Tuesday as bulls hoping for a bid toward $7,000 lost momentum. The top cryptocurrency by market value fell close to $6,320 after nearing $6,800 just a day earlier. Technical analysis pointed out that bitcoin’s 10-day moving average remains biased toward the bulls on an upward trajectory. If bitcoin can find support above the 10-day moving average near $6,585 before the end of Tuesday, this weekend’s push higher could return. On the contrary, though, a Tuesday move below about $6,300 could open the door to further losses as low as $6,000, which would bring bitcoin to a February low and a major psychological threshold.
ICOs Have Enormous Rate of Failure
A new study from Boston College found that 55.8% of all initial coin offerings (ICOs) fail within the first five months. To date, about 4,000 ICOs have raised close to $12 billion through token sales that often find significant traction on social media and around the web. The team investigating ICOs for the Boston College study used mentions of the projects on Twitter to gauge their health – no mentions in the fifth month deemed the project over and done with, per Boston College’s research criteria. “Breaking it down by category, 83% of the 694 ICOs that don’t report capital and don’t list on an exchange are inactive after 120 days,” the study read. “For the 420 ICOs that raise some capital but don’t exist, this figure falls to 52%, and for the 440 ICOs that list on an exchange, only 16% are inactive in the fifth month.”
Token creation platform Bancor is now officially offline after a security breach resulted in the loss of about $13.5 million in cryptocurrency on Monday. Bancor said on its Twitter account that no user wallets were compromised, but head of communications Nate Hindman said that the platform lost about $12.5 million worth of ether and $1 million of NPXS tokens. The firm was, however, able to block the transfer of roughly $10 million worth of BNT tokens before the hackers could successfully orchestrate the transaction. “It is not possible the freeze the ETH or any other stolen tokens,” Bancor said. “However, we are now working with dozens of cryptocurrency exchanges to trace the stolen funds and make it more difficult for the thief to liquidate them.”
YouTube Named in Fraud Case
Alphabet Inc. subsidiary YouTube was named in a class-action lawsuit related to the January collapse of BitConnect, a cryptocurrency lending platform that was previously accused of fraud. BitConnect has faced a number of suits from investors who lost money in its dramatic downfall. Now, a class-action suit allegedly claims that YouTube was negligent in not policing content on its site that promoted BitConnect. The suit’s plaintiffs wrote that BitConnect and its affiliates “published over 70,000 hours of unedited content, generating 58,000,000 views and luring hundreds if not thousands of victims.” The case continued, “By enacting policies designed to prevent bad actors (such as those soliciting investments in fraudulent Ponzi schemes) from disseminating harmful, offensive or inappropriate content through its platform, YOUTUBE owed, by its own assumption, Plaintiffs and the Class a duty to reasonable care to prevent such content from harming its users.”