Home / Archive / JP Morgan Launches Fake Cryptocurrency, Coinbase Releases Bitcoin SV Hostages and Coinmama Exposes User Data: This Week in Crypto

JP Morgan Launches Fake Cryptocurrency, Coinbase Releases Bitcoin SV Hostages and Coinmama Exposes User Data: This Week in Crypto

Last Updated March 4, 2021 2:53 PM
P. H. Madore
Last Updated March 4, 2021 2:53 PM

This week, JP Morgan Chase launched a blockchain-based IOU system that definitely isn’t a cryptocurrency. Waves Platform and Coinbase both released any Bitcoin SV they were previously holding. Two public pension plans invested in blockchain technology. And let’s not forget, Coinmama, an alternative to Coinbase for easy acquisition of cryptocurrency, suffered a breach.

Not much to speak of on the market front, this week. We consistently find the Bitcoin price somewhere between $3500 and $3700, no matter where you look, besides some esoteric perhaps unsavory markets with low volume. In other news, however, it was a rich week.

JP Morgan Launches JPM Coin

Our top story this week in crypto has to be JP Morgan Chase’s entrance into the blockchain technology sector. The story is particularly interesting due to JP Morgan CEO Jamie Dimon’s years-long stance on cryptocurrency. (In case you were unaware, he’s called it a “fraud” and eventually vowed “not to talk about it anymore.”)

JP Morgan Blockchain Fintech
JPMorgan’s new token, labeled a ‘cryptocurrency’ by many, will be used for payments. Source: Shutterstock.

America’s largest bank has rolled out an internal product to reduce the friction in its movement of over $6 trillion per day. The platform lacks all of the properties of a traditional blockchain – it’s more of a tokenized distributed ledger with censorship and centralized governance.

This reporter sounded off on the subject and wondered about the implications for Ripple Labs. Joseph Young wondered the same. Ripple CEO Brad Garlinghouse addressed such concerns later in the week.

Coinmama Breach Exposes 450,000 Users

Joseph Young broke the news to CCN.com readers that Coinmama’s more than 450,000 users had their e-mail addresses and passwords exposed in a wide-ranging security breach that included other sites like MyFitnessPal. Young writes:

The official statement of the exchange disclosed that 450,000 email addresses and passwords were leaked in a massive global hacking attack involving 24 websites and some 747 million records.

Unique to Coinmama in the breach, however, was the potential for theft. Users who had not enabled 2-factor authentication and had their accounts breached before detection would have been subject to withdrawals. Potentially, through social engineering, the hackers could have acquired further financial information about the users, as well.

Still a developing story, no losses have yet been reported.

Coinbase Unleashes the Phantom Bitcoin SV

In analysis of Bitcoin SV, this reporter has frequently pointed out that a good deal of its tokens have never seen the light of day.

One major reason was that one of the world’s largest retail exchanges in Bitcoin Cash and Bitcoin, Coinbase, had yet to release Bitcoin SV to its users.

Coinbase app cryptocurrency exchange
Coinbase finally released Bitcoin SV to its users for withdrawals into other wallets, more than three motnhs after the Bitcoin Cash hard fork. 

This week, that changed. So far, though, the price hasn’t taken a significant dump, indicating that BSV may have found a bottom in the $60s.

In other Coinbase news, an Israeli NGO is threatening to sue the company over its facilitation of fundraising for Hamas.

Two Virginia Pensions Invest in Blockchain

The police and public employees pension plans in Fairfax County, Virginia led the over-funding of a new $40 million investment fund launched by Morgan Creek Digital. In a first, the two unions contributed a collective $21 million.

Fervent news on the subject led the person responsible to reveal the motivations for investing in the fund – which will not be wholly about buying cryptocurrencies.

Instead of investing in cryptos, the money goes blockchain companies. (Mostly.) Two companies got mention: Bakkt and Coinbase. However, the fund can spend up to 15% of its $40 million on cryptos.

Indonesia Officially Unfriendly to Crypto Futures

Indonesia has made it clear, through strict regulations, that the country isn’t overly excited about the emergence of crypto markets within its borders. CCN.com’s Mark Emem brought the scoop:

Cryptocurrency exchanges, on the other hand, will be required to have a minimum capital of 1 trillion rupiah ($70.9 million). A minimum paid-up capital of 800 billion rupiah ($56.7 million) will also be required. Additionally, the regulations are bound to increase operating costs. Traders dealing in cryptocurrency futures will be mandated to employ client support personnel. And at least one of these employees must be a certified security practitioner.

Amaury Sechet Trolls Craig Wright With Satoshi Nakamoto Claim

Lastly, Amaury Sechet is not Satoshi Nakamoto.

If you’re going to be sarcastic online, it’s important that people know you’re doing so. Amaury Sechet, the lead developer of Bitcoin ABC (the primary implementation of Bitcoin Cash), graced our headlines for claiming to be Satoshi Nakamoto.

We had a suspicion he was kidding, so we tracked him down and eventually got an exclusive interview. It was a joke, intended to illustrate the ease with which a competent individual (like Craig S. Wright) can claim to be Satoshi Nakamoto.