Bitcoin News in Review: GAW, Winklevoss ETF, Mt. Gox Fraud, Bitcoin Price Drop, and More

January 4, 2015 23:31 UTC

With the end of another week, it’s time for the Bitcoin News in Review, where we feature some of the top stories of the week here on CryptoCoins News. This week, GAW Miners and PayCoin fell under heavy criticism, the Winklevoss twins’ bitcoin ETF submitted another filing draft to the SEC for the issuance of 1 million ‘COIN’ shares on Nasdaq, the bitcoin price fell below $300 USD, and more. Keep scrolling for this week’s biggest news.

GAW Miners and PayCoin

This week, the community accused Josh Garza of GAW Miners for running a scam with PayCoin. For those who don’t know, PayCoin is an altcoin created by GAW Miners that was supposed to have a minimum price of $20. With PayCoin, GAW also launched PayBase, a platform for trading PayCoin. However, the security of PayBase was soon called into question after reports of a security issue. According to GAW, the issue was a glitch with CloudFlare, and no coins or private data were lost. However, since then, PayCoin has fallen below the promised $20, and was delisted from altcoin exchange ShapeShift.io. The community has also expressed concerns about unfulfilled promises of merchant adoption of PayCoin and claimed but unproven $100 million investment. Garza plans to address these concerns at The North American Bitcoin Conference in Miami. Garza also posted an apology on /r/bitcoin, though deleted it soon after posting.

Winklevoss Bitcoin ETF Files for Shares on Nasdaq

On Thursday, the Winklevoss twins’ bitcoin ETF (exchange-traded fund) formally filed for shares on Nasdaq. The Bitcoin Trust filed with the SEC to apply to sell 1 million shares. However, a specific launch date has not been announced, suggesting that the ETF is still months away from seeing the public.

As explained in the SEC filing, the objective of the ETF is:

“The investment objective of the Trust is for the Shares to reflect the performance of the price of Bitcoins, as measured by Winkdex, less the expenses of the Trust’s operations.”

The Winklevoss twins (Winklevii?) will speak more about the ETF at the Inside ETFs conference in January.

Bitcoin Price

Towards the end of this week, the bitcoin price fell below $300 USD, and is currently at $265. It’s likely that as the price approached $300, sell pressure drove the price down to the mid-high $200’s. For now, (as always), it’s difficult to predict where the price will go next, but you can check out our in-depth price analysis here.

Japanese Police Suspect Mt. Gox Bitcoins Missing Due to Fraud, not Transaction Malleability

According to sources in the Japanese Metropolitan Police Department (MPD), only about 7000 Gox bitcoins were lost due to cyber attacks. The remaining 650,000 bitcoins (about 99%) are “highly suspected” to have gone missing due to fraud from an “unknown” party. Of course, most bitcoiners already suspected that the Gox bitcoins were stolen and not lost due to transaction malleability. The MPD suspects someone “familiar with the exchange system,” though it is unclear whether or not Mt. Gox’s former CEO Mark Karpeles is a suspect. Since leaving Mt. Gox, Karpeles has launched other services with his company Tibanne in an attempt to rejoin the community.

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That’s it for this week. Be sure to follow CCN on Twitter to stay up to date with the latest cryptocurrency news.

Images from Shutterstock.

Last modified: January 4, 2015 23:41 UTC

@@neilsardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.