Bitcoin

Industry Report: Bitcoin Is Still on Drugs, No Detox in Sight

Nick Marinoff | May 22, 2016 | 06:00

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Coinbase undergoes some changes, Bitcoin can’t break it’s drug habit, and Silk Road has a heart of gold. Here’s what you might have missed in this week’s cryptocurrency news:

Also read: Industry Report: Bitcoin Hears Thunder, Ethereum’s Biggest Crowdsale, Kaspersky Kills Crime

COINBASE

Bitcoin exchange Coinbase is changing its name to Global Digital Asset Exchange (GDAX) after announcing support for Ether trading on its platform. Why is Ether suddenly all the rage? Recently, Ethereum has launched the world’s largest crowdfunding campaign for its new DAO project, which is being hyped as the ultimate way to allocate capital. The campaign has managed to raise over $150 million USD, and everyone wants a piece of the action. Coinbase is now aiming to accommodate the growing list of financial institutions eager to trade Ether and bitcoin, respectively.

Ether has been a long-time rival of bitcoin, and now it’s finally earning its big moment in the spotlight. Vice-president of business development at Coinbase Adam White stated confidently:

“We’re very excited about Ethereum. There has been a ton of progress made in the last six to nine months… We have seen hundreds of emerging decentralized apps (applications launched on Ethereum… What’s powerful about ethereum is that I can write self-executing contracts, and I can run them on Ethereum, and it’s not on any central server or computer.”

BITCOIN CAN’T GET OFF DRUGS

ESU student Michael Mancini is spending time behind bars following accusations that he used the dark web to purchase LSD with bitcoin and later sell his drug stash to friends and roommates.

Bitcoin’s reputation has long been tainted by its use in illicit activities. Despite the fall of the original Silk Road and its successors, the sale of drugs and firearms via the deep web hasn’t shown many signs of slowing down.

Things ultimately took a downward turn for Mancini when an informant told ESU police of the drug deals that were allegedly taking place on school grounds. It is believed that Mancini purchased the LSD at $9 a hit, and kept some for himself before dealing the rest to assorted colleagues. One too many orders led to suspicion among authorities, who upon inspecting the contents of the student’s latest delivery, proceeded to arrest Mancini for purported drug trafficking.

SILK ROAD 3.0

In what appears to be an effort to go “clean and sober,” Silk Road 3.0 has returned after a period of non-use and announced a charity drive set for June 8th, 2016. Approximately $5 from every sale will be donated to the Last Door Recovery Society, a drug and alcohol treatment center based in Vancouver. While the site will not necessarily be used for legal services, the owners are attempting to set people in the right direction and encourage “responsible use” among those who engage in “mind-altering substances.”

Additionally, those behind the charity’s operation have stated that they will be donating from their own pockets in an attempt to increase funds and promote bitcoin usage. All the while, the owners aim to silence suspicious parties by stating they are worried less about making money and more about ensuring user privacy.

Know of any good stories that should be included in our next industry report? Tell us about them below!

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