Tag: Charlie Lee

Based God: John McAfee Owns The Blockchain

By Spencer Kellogg | USA

My dad called me on the phone with a staccato anxiety in his voice: “Do you think I should buy Verge?” – “No, Dad, don’t buy Verge.” He didn’t. You see my father lives on the outskirts of the crypto realm, holding big caps and sprinkling on projects he likes (shoutout $SALT & $OMG). He is not on twitter 24/7 watching in horror as the red-blooded madness unfolds through equally manic fits of delight and terror. He did not know that it was McAfee’s tweet about Verge that sent the coin parabolic and headed on a moon mission without a jetpack. As of this post, Verge is down almost 40% on the day and many in the crypto community are venting their frustration with McAfee in the form of outright condemnation. In a whirlwind of speculation, this past week alone, McAfee has used his Twitter to “highlight” such coins as Electroneum (ETN), Burst (BURST), Reddcoin (RDD), Digibyte (DGB) and today Humaniq (HMQ). While he has every right to his free speech and to discuss what he does and doesn’t like about certain technology on the blockchain, it’s apparent that his opinions on any particular currency carry substantial weight and can cause massive swings in market cap and user consensus. With rumors circulating that McAfee will promote any coin if someone is willing to pay him a fee, many are beginning to question the ethics of a man who simply refuses to be questioned.

Should McAfee know better? Is it a bad look for the entire community if one person is directing pump and dumps with the single click of a button? Does it even matter? Many in the community were floored and excited when they saw the effect of McAfee’s power as he sent Verge flying to heights unseen through a single tweet. Traders spent the next week refreshing Twitter waiting for an update from the cyberpunk guru so they could jump on the next McAfee rocket while others were legitimately concerned and infuriated by the juvenile nature of our unregulated market. This isn’t the first time and this won’t be the last time that an influential market maker sends a coin flying (or dumping) through their opinion alone. With little real adoption to point to, much of cryptocurrency’s life cycle has been predicated on hype and hype alone.

Litecoin founder Charlie Lee has come under both criticism and adoration for his use of language on Twitter when describing his project with many investors and traders unashamedly begging for Lee to promote good news (even if there might not be any at all). One of the reasons I consider Lee a philosophical leader in the space is because of how he has handled this particular situation. Lee has refused to propagandize his coin’s progress and as such has gained much respect in the greater community while providing a stable market cap for his currency. When Lee sold his stack of Litecoin last week and warned investors about both his influence on the coin’s price and the high risk of collapse from an inflated market, he was met with disdain. Roger Ver can also be accused of similar tactics with his tweets regarding the debate over Bitcoin and his support for the forked Bitcoin Cash. Of course, opinions and coordinated pumping are two very different things… Much of this leaves me wondering about the rules and decorum of this space. Should there be any at all? Why are any of these men, who stuck their necks on the line to lead into a territory of global economic resistance, expected to act within the pragmatic parameters of their fathers stock market? What do they owe to anyone?

Perhaps McAfee owes more than he thinks. Some of the shrewder philosophers in the space pointed out that this type of bonanza market leads to FEDS pounding down doors. With greater extravagance comes greater heat from the boys in the blue. Others have pointed to the heavy disruption in flow that a pump without cause can create in the market with many new investors throwing cash at pumped projects only to lose big in the proceeding days and weeks. This does not help create stability in the market and keep investors around for the long haul. This can also create a stain on a coin as much of the market today is built strictly on publicity. Manufactured pumps also lend credence to the skepticism of the global banking elite who believe this a flash in the pan. Serial doubters like JP Morgan head Jamie Dimon can use this as evidence how bare and thin the market really is when it comes to use cause and adoption.

Personally, I like McAfee and his pumps. We are witnessing a once in a lifetime wealth creation that can literally change a person’s life in the span of a few days. Although my brain and portfolio have been tied down in other markets, I wouldn’t feel the least bit guilty about hopping onto one of McAfee’s pumps. McAfee is and will always remain a legend and a pioneer who set the pace while others looked cautiously at the road ahead. His speech at the 2016 Libertarian Convention remains one of the most prolific essays on freedom and liberty wrote by a presidential candidate. The FEDS are going to come no matter what we do. Everyone doubted us anyways. They can keep doubting. This isn’t their market, it’s ours. Fuck them all. Vote McAfee, Based God.

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The Great Coinbase “Disaster” Of 2017: Bitcoin Cash Murders The Blockchain

By Spencer Kellogg | USA

What the hell just happened? Alleged insider trading at Coinbase, Roger Ver blasted for having practical visions of the future of cryptocurrency and Charlie Lee attacked as a parasite for cashing in (rightfully) his stack of Litecoin. What a mess the past few days have been leaving some in the Bitcoin and cryptocurrency community feeling shell-shocked from a new presence of egoism and narcissism in the once generally positive community. Furthermore, hard questions are arising about Bitcoin’s dominance as ‘king of crypto’ leaving many consumers upset in its wake. Money is a bastard and the past 48 hours have been a shining example of how greed and playground groupthink have diluted the overarching philosophical goals of the space and split a massive userbase into argumentative factions while leading even the most sophisticated lemmings straight off the cliff.

Bitcoin has a problem. For all of the talk about it being the world’s new reserve currency, it doesn’t move very well. It requires an expensive fee and the time delay for receiving the coin has been virtually eradicated by other competing digital currencies in recent years. The strongest thing Bitcoin has going for it at the moment is its first mover advantage in the space and its dominating presence on every major exchange in the world. Bitcoin Cash is a ‘fork’ of Bitcoin meaning that Bitcoin Cash is of the same origin as Bitcoin but possesses functional and technological differences. Just like a forked path presents two new roads so too does a forked currency and the route that users choose to take determines the viability of the product. Bitcoin Cash promotes faster payments, lower fees and secure development from a centralized leadership. It also has Roger Ver, aka ‘Bitcoin Jesus’ (or Judas depending on your opinion), one of the great controversial figures in all of cryptocurrency. Ver sent the currency and overall markets into a feeding frenzy as he appeared on CNBC yesterday to discuss Bitcoin Cash as the currency entered into the connected crypto exchanges GDAX and Coinbase.

With Bitcoin Cash coming online at Coinbase (the major exchange in the USA) markets and consumers around the world flooded in to purchase the asset before its listing. Allegations of insider trading were rife leading to Coinbase¬†halting the trading of the currency as they investigated their employee’s purchases leading up to the event. In the greater community, opinions were split with some users pointing at the “disaster” and using this event to call for greater regulation and even lawsuits for what they perceived to be cheating while others grinned and accepted the practice for what it is; a fully free, unregulated market that does not play by your grandfather’s Wall Street rules. All Bitcoin wallet addresses that held BTC during the August fork were given the exact same amount in Bitcoin Cash and in the month’s leading up to the New Year, there had been confusion regarding whether or not Coinbase would add Bitcoin Cash as a trading option with many believing that Coinbase would only provide withdrawal of the currency from its website. The decision regarding whether or not Coinbase would allow active trading of the commodity is important because it has a major effect on the wider adoption of the currency. As it stands now, the continued shenanigans from Coinbase is leading to a loss of faith from its consumers who suspect manipulation and lies on the part of the leadership. Until a better option is available many US-based crypto customers will have no choice but to use the major on-ramp platform for enter/exit trading.

In the world of Litecoin, founder Charlie Lee laid out his reasons for selling off his portfolio of Litecoin in a Reddit post that can be read here:¬†Charlie Lee Sells His Litecoin. He pointed to his presence as a social and cultural figure in the cryptocurrency market overall and his interest in divesting from the coin that he has such an immense influence upon. This led to fingerpointing insinuating that Charlie Lee was using Litecoin simply to get rich or even that this had been done to take advantage of the Bitcoin Cash listing on Coinbase. Lee also made clear that the currency has seen a remarkable run up from four dollars in the springtime and that many investors should be careful in this new high-risk and unstable territory. In the past year, I have witnessed Charlie Lee act as an agent of good over and over again and I was surprised by the level of hostility aimed at Lee in the following days. The aggression towards one of the true white knights of the space speaks to the level of mistrust and resentment that some consumers are feeling in this grey area of ‘bubble’ uncertainty.

The Wild West of crypto is an enthralling business but the ailments of big money and uninformed speculators are beginning to rear their ugly head. I always thought the major hurdle of crypto’s mainstream adoption would be a belligerent Congress but after what I’ve witnessed this week I am beginning to believe it will be the low IQ newcomers who demand greater centralization and regulation to protect their interests. I suppose the trending backlash can be seen as a bullish sign because it signals that a mass userbase has collected with desires and opinions and a real stake in the game. The bickering, however, is difficult to listen to and reminds me most of the Sunday’s I spent as a child watching grown men smash into each other on the football field. We are still years away from true adoption of these services and much can be changed in the proceeding time. Do your own research, form your own opinions, strap in and get ready for the moon, just be careful which rocket you choose.


Image credits go to @Crypto_God