LedgerX launched first long-term Bitcoin option

Fresh born New York exchange now supports new interesing Bitcoin related offers
20 November 2017   441

New York swap exchange LedgerX offered long-term options for bitcoins at a price of $10,000 and expiration on December 28, 2018. This is reported by the CoinDesk.

Under the terms of the deal, the buyer has the right to buy bitcoin at a price of $10,000 at that date, or almost a 30 percent premium on today's price.

In an interview, LedgerX CEO Paul Chou said that such investments speak of the "growing up" of the crypto-currency market and will attract even more institutional investors.

There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018.

Paul Chou

CEO, LedgerX

Two large investors immediately became interested in new options a day after the launch, which surprised even the CEO of LedgerX.

Under the terms, the buyer agreed to a price of $2,250.25 for the trade, meaning the seller collects that money if the price is less that $10,000 by the end of next year, and the buyer gets to purchase bitcoin at the strike price if it is higher.

Unlike a futures swap however, the buyer is not obliged to purchase the asset.

If the price goes to zero, you don't have to pay $10,000 for it. But if a year from now it's at $20,000, then you can exercise your options.

Paul Chou

CEO, LedgerX

Based on LedgerX's own researches (made using the Nobel-prize winning Black-Scholes financial markets model), the startup believes there is a 25 percent chance that bitcoin will reach that level in the allotted time. 

NSA Tracks BTC Users, Snowden Says

According to the documents from former NSA agent, BTC transaction monitoring is one of the main priorities of the agency
21 March 2018   218

The US National Security Agency monitors actions in the bitcoin blovkchain in order to identify users of crypto currency. This is reported by The Intercept, which received a set of documents from a former employee of the NSA Edward Snowden, according to which the monitoring of BTC transactions is one of the main priorities of the agency.

They also say that the work of the NSA in this direction may not be limited to analyzing the blockchain and include the detection of crypto users.

The published document indicates that the NSA has become more likely to collect passwords of bitcoin users, data about their activity on the Internet and the identity of their devices.

According to the report, the NSA monitors bitcoin users from 2013 through a program code-named OAKSTAR, as well as the MONKEYROCKET program, which is the OAKSTAR project. The data collected over the years can allow the NSA to accurately identify participants in crypto-currency transactions.

For information on bitcoin users, the NSA can use XKeyScore, a powerful system for monitoring Internet activity, which became known in 2013, when Snowden revealed information about the surveillance of the NSA.

The document says that the information collected by the Agency is stored in the file "Provider user full.csv", and details of identification of time stamps and Internet addresses of users for the purpose of determining their location are given.