Digital Currency Update: Zcash Executes Hard Fork
Written by Token Authority Research Team
Posted June 25, 2018
It’s been a turbulent week in the digital currency world. Investors started to sweat as cryptos hit lows not seen since the start of the year.
But it isn't all doom and gloom. Even as the market pulls back, the blockchain technology powering it has not. In fact, this technology is still moving ahead full tilt.
We're going to look at a few stories that demonstrate that this week, including a new digital currency miner IPO and Zcash's first hard fork.
Let’s get started.
Zcash Executes its First Hard Fork
A few weeks ago, our team wrote an update informing investors that the Zcash token would soon be available on the Gemini platform. This was big news, making Zcash the third token available on the platform, joining peers Ether and Bitcoin.
And the team behind Zcash has just taken another big step: executing its first hard fork.
The name of this hard fork is "Overwinter," and during it, Zcash's $800 billion network switched over to a new software.
Overwinter is a simple step intended to improve the core attributes of the network's code before a much bigger and far more crucial upgrade called Sapling. Sapling is currently accepted by the Zcash community and will likely take place in October. The goal behind Sapling is to eliminate the weight of the protocol's private transaction types, which will in turn allow the network to scale more effectively and accommodate more users.
The Overwinter fork went off without a hitch, which is a relief since similar hard forks have proven problematic to other digital currencies.
There is always the chance with any hard fork that a segment of the user base will not accept the new token.
This will create a new rival token and often create disagreement in the community. Bitcoin Cash and Bitcoin are a perfect example.
Some Bitcoin users didn’t like the decisions made by the Bitcoin community when it came to scaling solutions, and it was that disagreement that produced Bitcoin Cash.
We will keep investors up to date on the Zcash hard fork and the upcoming fork, Sapling.
Is Crypto Tourism Really a Thing?
I know, I know. You may be rolling your eyes, but the crypto tourism industry is real. And it’s booming.
In just the last year, dozens of businesses have cropped up around cryptocurrencies. Out of those, some of the more notable include Cryptonation, Blockchain Cruise, and CryptoCribs.
These tourism channels provide investors and crypto enthusiasts with a way to spend cryptocurrency. Beyond that, some of the events actually double as conferences.
Recently, a cruise organized by Blockchain Cruise announced it will feature headline speakers John McAfee and Roger Ver. So how do you get onboard?
Well, it turns out that landing a spot on a crypto cruise is harder than many people think.
While it's expected that over 2,300 will actually board the cruise, half of those tickets are already reserved. The remaining tickets will be sold for between $1,000 and $3,000 a piece. So it would seem pickings are slim.
What do we think of crypto tourism? To be honest, the team at Token Authority has mixed feelings about it. On one hand, crypto tourism will increase digital currency use and acceptance by providing investors with a way to interact with the market.
On the other hand, it also provides opportunities to make money in a heavily hyped market, and when it comes to crypto education, not all sources are created equal. If you want to partake in this kind of event, make sure to read all the details.
What in the World is Going on With TRON?
At this point, many investors have already started asking questions about the digital currency TRON. As one of the top 10 tokens on CoinMarketCap, the token and its project have managed to attract plenty of attention and speculation.
Last week, TRON began a token migration, moving all of the current TRON tokens from their host Ethereum blockchain to a new proprietary blockchain. The migration came to a close on Monday, causing many TRON supporters to call the day “Independence Day.”
And this migration could be more than just a milestone for the company, whose history can be described as murky at best. If successful on the new blockchain, the migration will set a positive note for TRON moving forward. If it fails, then this will likely damage the company’s reputation
Over the last year (TRON was founded in July 2017), the company has often wooed investors with the promise of “decentralizing the internet,” without actually indicating how this would happen. The company is headed by Justin Sun, a former representative of Ripple.
Most recently, TRON has come under fire for its acquisition of BitTorrent, a move that has many crypto enthusiasts worried. The fear is that TRON is using the technology to back its own, which may not be as substantial as the company claims.
At this point, many critics in the space have pointed out that TRON's code is a compilation of code from other blockchain projects, including Ethereum. While TRON has denied any coding plagiarism, even experts fear that it could cause issues for the blockchain during launch.
We will keep investors up to date on TRON as the story develops.
Chinese Bitcoin Miner Prepares for IPO
On June 25th, Ebang Communication filed an application for an initial public offering (IPO) on the Hong Kong Stock Exchange. Currently, Ebang is one of China’s biggest Bitcoin mining hardware manufacturers.
Ebang did not note how much it seeks to raise through IPO, but the company seems to be going big. Back in May, Reuters reported that the company was looking to raise over $1 billion to fund future growth.
In 2017, Ebang’s revenue was the equivalent of $141 million. In the heat of the crypto boom, the company’s revenue increased 18-fold.
Beyond that, in its latest filing, Ebang suggested that the proportion of its revenue raised through Bitcoin miners has been increasing over the years, growing over 90% between 2016 and 2017.
Currently, Ebang’s competition in the Chinese markets are Bitmain and Canaan Creative, which have also both seen dramatic growth in the last year.
Those are our updates for this week. Our team will provide you with more updates on all of these events as they become available.
Urgent Update: Facebook Lifts Crypto Ban!
As we were preparing to go to press, the news hit that social media network Facebook had lifted its crypto ad ban.
Facebook enacted a crypto ad ban a few months ago alongside its peers, Twitter and Google. The updated policy will now allow "ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings."
Of course, this doesn't mean Facebook is once again a crypto free-for-all. Companies that wish to advertise crypto content will still have to submit an application outlining the advertisement.
That said, this is still a big step. There is no denying that the loss of crypto ads on social networks impacted market growth, hurting many of the small companies and information providers dedicated to the digital currency and blockchain space. This new policy will hopefully help ferret out malicious and fraudulent players while allowing real digital currency companies to reach their audience.
We will provide you with updates as the situation develops.
For Digital Currency, 2017 Was a Landmark Year…
The price of Bitcoin, the world's first digital asset, soared. And that turned many first-time investors into millionaires within a matter of months. Beyond Bitcoin, other digital assets also gained national attention and the support of massive corporations like Intel, Microsoft, and IBM.
But today, investors are looking at a different digital currency landscape…
A whole new wave of valuable blockchain companies is giving investors a second chance at Bitcoin-level profits.
At Token Authority, our goal is to provide investors with the actionable research and news that they’ll need to profit from this groundbreaking market. Sign up below to receive our free e-letter and a report detailing the top three digital currencies that you should be keeping an eye on in 2018.Sign up to receive your free report. After signing up, you'll begin receiving the The Token Authority e-letter.