Monthly Report of GMO Internet and Its Cryptocurrency Mining Business Published

GMO Internet Inc., a major Japanese company investing in Internet-related businesses and listed on the first Section of the Tokyo Stock Exchange, has been publishing monthly reports on its earnings and suchlike from the mining cryptocurrency business it has been conducting since December 20 last year.

Established in 1991, GMO Internet is engaged in the Internet advertising and media, Internet securities, and mobile entertainment businesses across the entire GMO Internet group, centering on the Internet infrastructure business. Furthermore, GMO Internet established GMO Coin, Inc. as a group member, and from May 2017 GMO Coin, Inc. has been providing services that enable the foreign exchange trading of cryptocurrency, and buy and sell transactions of cryptocurrency.

In its monthly report, GMO Internet announces the amount of Bitcoin (the units of Bitcoin and the ticker symbol are BTC) and Bitcoin Cash (the units of Bitcoin Cash and the ticker symbol are BCH) acquired by the company by mining. For reference, GMO Internet also announces the rates as of the end of the month of BTC/JPY and BCH/JPY, and the hash rate, the speed at which a computer completes an operation in the Bitcoin code. GMO Internet reports that these amounts and rates only started to be announced from the 20th in the case of December 2017, and as a result the figures were slightly smaller. However, the hash rate has been increasing from January to February due to the increase in the number of mining computers being operated. In the future, the number of computers being operated will be increased as planned.

December 2017
Bitcoin mining reward: 21 BTC
Bitcoin Cash reward: 213 BCH
Hash rate: 22 PH/s

January 2018
Bitcoin mining reward: 93 BTC
Bitcoin Cash reward: 25 BCH
Hash rate: 27 PH/s

February 2018
Bitcoin mining reward: 124 BTC
Bitcoin Cash reward: 287 BCH
Hash rate: 108 PH/s

GMO Internet also announced that it will start the cloud service Cloud Mining from August 2018. Currently, GMO Internet is accepting advance applications from those who wish to use the service, and from March 2018 the company has been holding briefings about the service in nine cities around the world. Moreover, to realize a next generation mining board computer for high-performance mining, GMO Internet is moving forward with the research and development of state-of-the-art semiconductor chips (mining chips) together with partner companies that possess semiconductor design technology.

In Japan, many listed companies such as major financial services firms and Internet-related companies are planning to participate in the cryptocurrency business. Japan was the first country to develop various legal frameworks such as registering as a licensed cryptocurrency exchange operator by the Financial Services Agency, and in the future attention will focus on how the major players in Japan develop, along with any future initiatives concerned with Japan’s laws and regulations.



Subscribe to our newsletter

A lot of people made a lot of money out of Bitcoin. Most of them invested in the early stages many years ago and sold recently near the top. Industry experts are predicting the next big thing may not be Bitcoin but Ripple. The company has made a lot of news lately with new partnerships and adoption across the financial industry. But could it really be bigger than Bitcoin?

A number to crypto experts were recently interviewed by Forbes during which they predicted that Ripple and its cryptocurrency, XRP, could be the thing to invest in now. One prediction is that larger gains would be possible due to its low price below a dollar. Bitcoin is already trading at around $10,000 so to go up significantly from there it will need a lot of in-flowing cash.

Ripple Already has a Foot in the Door

With Ripple’s faster transaction speeds and lower fees it offers an easier way for financial institutions to embrace the digital currency, and over a hundred of which already have. That is according to Craig Cole from Cryptomaps who also attributes this to XRP’s monumental rise year on year. This time last year Ripple’s cryptocurrency was trading at just $0.006, it has risen over 14,300% to its current levels today. Cole also went on to say;

“Ripple just might be the catalyst in making cryptocurrency more mainstream. The virtual currency is certainly on the rise and has the potential to be the first token to truly disrupt an industry, and if it does, expect XRP to reach Bitcoin-like levels of ubiquity in the near future.”

John-Paul McCaffrey, Associate Director at Long Island University, added that “Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think,” fueling the rumors that Coinbase may list the altcoin later this year. Another industry expert, Roman Guelfi-Gibbs, Director of Operations at Pinnacle Brilliance, thinks it will take another year before Ripple makes the big-time;

“Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place.”

Global Block Chain Technologies president, Shidan Gouran, said that the dollar volume separating the top three market capacities would need to be closer for XRP to improve. Additionally consumer awareness needs to increase and it needs to be available to the masses on the same level as Bitcoin and Ethereum which can be bought in fiat.

Company CEO Brad Garlinghouse stated in a separate interview with CNBC that the crypto industry needs to work with regulators to go forwards.

“It’s incredibly important that the entire industry recognizes that we have to work with the regulators, we have to work with the system. The blockchain revolution is happening from within the system it’s not going to happen from outside the system.”

He went on to state that There are some within the bitcoin community that really advocated not just down with banks but down with governments, we have been a contrarian relatively speaking in that regard,”

Naturally being a private and centralized company Ripple will have a different take on the ethos of cryptocurrencies. However, being of that nature has provided it more partnerships and adoptions than any other similar digital currency. As these continue, its role in the future of blockchain technology and mainstreaming cryptocurrencies will no doubt expand.

Japanese government regulators shuttered two cryptocurrency exchanges in the long-awaited aftermath of the massive Coincheck hack when hundreds of millions of dollars in digital currency were lost.

FSA Suspends Two Exchanges

Japanese Financial Security Agency (FSA) released a statement outlining regulatory steps it was taking against cryptocurrency exchanges earlier today. Most prevalent is the order that both FSHO and Bit Station temporarily suspend their business for a month starting today March 8.

The statement alleges that FSHO “does not have a proper system to monitor trading and has not given training to its employees,” and that an employee at Bit Station has used customer funds for his own trading purposes.

In addition, five other exchanges, including Coincheck were ordered to improve their business practices. These steps have been months in the coming and were prompted by the massive Coincheck hack that resulted in the loss of 530 million worth of NEM cryptocurrency.

The hack was ruled in part to have been a result of lax security practices at the company where customer coins were held in online wallets making them easily accessible to cyber-criminals.

At the time Coincheck said it had planned on moving the coins to a more secure offline wallet but were understaffed and hadn’t yet had the time. The FSA searched Coincheck’s offices and handed down sanctions at the time, promising more to come on March 8.

Effects of Coincheck Hack Linger on

Though Coincheck has been promising to reimburse $400 million to all 260,000 customers since the time of the hack nothing has been paid out yet and it is still unclear how the funds will be found to do so.

Cryptocurrency exchanges are required to register with the FSA in Japan but at the time of the hack Coincheck was given an exception to do business while the FSA reviewed it’s application as it had grandfathered the ruling.

In February seven plaintiffs – two companies and five individuals – filed a lawsuit against Coincheck seeking compensation for their lost NEM coins. These actions by the FSA follow a lot of speculation in the country’s crypto community over security issues within the exchanges. Japan has been home to the two largest recorded hacks, Coincheck and the now legendary Mt. Gox. 

A more recent controversy over the amount of advertising that Japanese exchanges are engaged in showed that some companies were earmarking much more for billboards and television advertisements than for personal training and security protocols.

Japan is one of the leading countries implementing cryptocurrency at point of sales with over 10,000 business accepting it. The countries most popular exchange bitFlyer has over a million users.

Key Highlights

  • Ethereum classic price was under a lot of pressure and it broke the $25.00 support against the US dollar.
  • There is a major bearish trend line forming with resistance at $22.40 on the hourly chart of the ETC/USD pair (Data feed via Kraken).
  • The pair remains at a risk of more declines as long as the price is below $25.00.

Ethereum classic price fell further against the US Dollar and Bitcoin. ETC/USD is now well below the $25.00 level and it eyes more declines in the near term.

Ethereum Classic Price Resistance

There was no major upside move above $30.00 in ETC price recently against the US dollar. The price started declining and it broke a major support area near $25.00. It ignited further declines and the price even broke the $22.00 support. Looking at the current trend, there is a lot of pressure since the price is well below the $25.00 handle and the 100 hourly simple moving average.

The downside move was such that the price traded close to the $20.00 handle. The recent low formed was $20.27 from where an upside correction was initiated. It tested the 23.6% Fib retracement level of the last decline from the $29.55 high to $20.27 low. However, the upside move was capped and the price seems to be struggling to move above $22.30. There is also a major bearish trend line forming with resistance at $22.40 on the hourly chart of the ETC/USD pair.

Ethereum Classic Price Technical Analysis ETC USD

The most crucial resistance on the upside is around $25.00. It is also close to the 50% Fib retracement level of the last decline from the $29.55 high to $20.27 low. On the downside, the $20.00 handle is a major support and a buy zone.

Hourly MACD – The MACD for ETC/USD is about to move back in the bearish zone.

Hourly RSI – The RSI for ETC/USD is currently below the 40 level.

Major Support Level – $20.00

Major Resistance Level – $22.40


Charts courtesy – Trading View

Blockchain technology is a great technological innovation. Any features built on top of blockchain are also of great interest. More specifically, smart contracts are quite popular as of right now. Fujitsu has come up with a new technology to assess any issues or risks associated with smart contracts in their current form.

Smart Contracts are Great but Risky

No one will deny the potential of smart contracts is certainly there. They allow for automating many different aspects of business models being used today. However, there are also some risks associated with this new technology. As we have seen in the past, these contracts can be manipulated by hackers if the code is not secure.

Unfortunately, most of these contracts are not audited in the slightest. That causes a big problem and concern for anyone working with this technology. Addressing such problems at an early stage is of the utmost importance. Surprisingly, it seems Fujitsu has a viable solution in this regard. The Japanese ICT company wants to address risks associated with smart contracts at an early stage.

This is a pretty positive development for the blockchain industry as a whole. With these contracts automating transactions and data sharing on blockchain platforms the potential is virtually unlimited. At the same time, addressing reliability concerns with smart contracts is not easy by any means. The new in-house developed algorithms by Fujitsu will identify risks on the Ethereum blockchain. It is unclear if other blockchain systems will be supported in the future.

A Foolproof Solution is Born?

According to Fujitsu, their new algorithms can detect 100% of the risks associated with Ethereum-based contracts. There are a few exceptions though, but those will be ironed out eventually. So far the solution’s overall accuracy is close to 88%, which is more than respectable. Improving this percentile will be a challenge, but Fujitsu is confident they can keep refining this solution. The company explained their train of thought as follows:

“Because over-identification of risk is rare, this technology will enable more efficient smart contract development, and combined with the risk location identification technology, it is also expected to reduce the workload involved in tasks such as specification comprehension, code evaluation, and fixing the code. This technology will contribute to the efficient application of blockchain technology to a wide variety of fields.”

For now, the plan is to further develop these verification technologies. Fujitsu will continue to focus on Ethereum, but Hyperledger Fabric is also of great interest. It is possible the detection algorithm will be commercialized at some point. Building a more secure blockchain and smart contract environment is a positive development for everyone. Doing so will take a lot of time and effort, though.

Bitcoin sunk beneath the key $10,000 mark to a recent low amidst rumor-mongering of a Binance hack that compromised investor accounts.

Nothing Was Hacked

Rumors that apparently began with a Reddit thread questioning whether Binance customers where being hacked spread across the net resulting in an overall drop in the cryptomarket. It may have all started with this comment on Reddit;

“Binance just sold all my alts at market rate and I have got just the Bitcoin now. Is it because of account getting hacked or Binance bot issue? Have raised a ticket 715903 for this.”

To which Binance responded that they were investigating issues that some customers were having with their funds and that the only confirmed victims had registered with API keys (used for trading with bots). They finished by commenting that there was no evidence the platform had been compromised.

Some users continued to dispute the reply saying that they had not used API keys and were missing funds. Giving legs to the rumor so that it quickly spread across social media platforms and began to affect trading across all cryptocurrencies, perhaps further fueled by Binance temporarily disabling withdrawals.

Binance CEO Changpeng Zhao took to Twitter to try and stem the panic tweeting that all funds were safe but some accounts may have been compromised by phishing. He followed that with tweets that showed the accounts that had been compromised with messages restating that the issue had been recognized and fixed.

Recent news of major hacks resulting in huge loses may have added to investor reaction. Binance has since published a blog post explaining the incident;

“As withdrawals were already automatically disabled by our risk management system, none of the withdrawals successfully went out. Additionally, the VIA coins deposited by the hackers were also frozen. Not only did the hacker not steal any coins out, their own coins have also been withheld. After a thorough security check by Binance, we resumed withdrawals. Trading functionality was never affected.”

Regardless of Binance’s fast reaction though, the damage was done and the market dropped in reaction to the initial scare in addition to further regulation in the US. Bitcoin hit a recent low of $9,468 and the rest of the altcoins tumbled as well.

SEC Announcement Added to Drop

A more justifiable factor that has compounded the market drop was due to an SEC ruling that mandates cryptocurrency exchanges register or face possible jail time. This came after weeks of subpoenas and evidence gathering as the securities commission still struggles to define what cryptocurrencies are and how to regulate them.


Relative to Lumens-whose prices are “calm”, the depreciation in LTC, NEO, Monero and EOS has been astounding.

While we expected this to be the norm especially after prices broke below the middle BB and $200 in LTC daily chart, it is NEO that is turning out to be interesting.

Over the past 2-3 days, NEO FUDs were being spread and while at it we had ONT air drop and that might have dragged down prices a little bit. At the moment, $85 remains a key support line while $4.2 is the next bear target line for EOS sellers.

Let’s have a look at these charts:


Lumens Technical Analysis
XLM/USD Daily Chart for March 8, 2018

The last couple of hours have been volatile for Lumens and it continues to be especially if there is a breach of $0.30 main support-clear in the daily chart.

At the moment, we expect the same reaction as it is in the 4HR chart-that of rejection of lower lows as the stochastics shows.

Both the daily and 4HR stochastics are turning from deep the over-sold territory and the fact that both have buy signals means there is momentum building up from the bottom up.

In my opinion, if a bullish candlestick prints anywhere between $0.28-March 7 lows and $0.30 then we can have a reason to buy. Otherwise, any further depreciation might see prices hit the 78.2% Fibonacci retracement level at $0.22.


Monero Technical Analysis
XMR/USD Daily Chart for March 8, 2018

Besides the bear divergence pattern between price action and stochastics, sellers can remain positive now that there is a clear sell pressure confirmation after yesterday’s bear candlestick.

If we extract some details from our previous analysis then we notice that not only is the middle BB at around $300 our first support line but any strong collapse of Monero valuation below it will open the door for a retest of $250.

From price action, that’s likely to happen and as such bears should in selling opportunities in lower time frames to sell this coin ahead of their MoneroV hard fork and Air Drop.


EOS Technical Analysis
EOS/USD Daily Chart for March 8, 2018

It’s evident that sellers are in charge and while we maintain our short term support at $5.8, price erosion has been strong.

In this regard, we shall move our 2nd level of support and bear target to $4.2, the 78.6% Fibonacci retracement level.

Chances of this happening is also high and we should borrow from the way EOS prices are diverging away from the middle BB and the fact that candlesticks are actually banding along the lower BB. This means bear momentum is high.


LTC Technical Analysis
LTC/USD Daily Chart for March 8, 2018

Referring to yesterday’s forecast, we can see that LTC is actually trending at around the 1st Take Profit level and the 68.2% Fibonacci retracement level.

Because of yesterday’s bearish confirmation, LTC sellers can move their stops to break even while those who didn’t get in earlier can wait for stochastics sell signals in lower time frames. Then again, LTC bear candlesticks are now banding along the lower BB meaning sell momentum is high.

Even if there is an appreciation of prices, our immediate resistance is March 7 highs of $200. Otherwise, yesterday’s forecast remains pretty much the same.


NEO Technical Analysis
NEO/USD Daily Chart for March 8, 2018

Sell momentum is high and according to our earlier trade plan, it’s better to take NEO sells only and aim for $60.

For that to be applicable, traders can actually zoom in and check the 4HR chart or less for stochastics sells and ride with the wave.

Today, I will watch what happens at the 61.8% Fibonacci retracement line at around $85. Any bull candlesticks say in the 4HR chart might dilute this sell pressure.

All BitFinex, Bittrex and CoinBase charts courtesy of Trading View

Key Highlights

  • Ripple price fell sharply and declined below the $0.8500 and $0.8200 support levels against the US dollar.
  • There is a major bearish trend line forming with resistance near $0.8600 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair remains in a bearish zone and it may decline further towards $0.7800 in the near term.

Ripple price fell sharply against the US Dollar and Bitcoin. XRP/USD is now well below $0.8500 and it looks set for more losses in the short term.

Ripple Price Decline

There was a sharp downside reaction from the $0.9200 swing high in Ripple price against the US Dollar. The price declined and broke a major support area near $0.8500. It ignited further declines and the price even traded below the $0.8000 level before recovering. It is now trading well below the $0.9000 resistance and the 100 hourly simple moving average.

Recently, the price traded as low as $0.7877 before it recovered. It moved above the 50% Fib retracement level of the last drop from the $0.9236 high to $0.7877 low. However, the upside move was protected by the $0.8870 level. Moreover, there was close above the 61.8% Fib retracement level of the last drop from the $0.9236 high to $0.7877 low. It seems like the price failed to move above the maintain gains above the $0.8600 level. On the upside, there is a major bearish trend line forming with resistance near $0.8600 on the hourly chart of the XRP/USD pair.

Ripple Price Technical Analysis XRP USD

Therefore, a major recovery above $0.8600 won’t be easy. On the downside, the $0.8000 level is a decent support. Below the mentioned $0.8000, the price may retest the $0.7800 level in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD is slightly in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently recovering from the 30 level.

Major Support Level – $0.8000

Major Resistance Level – $0.8600


Charts courtesy – Trading View

FOMO Moments

The rout has intensified during this morning’s Asian trading session and the bears are fully in control. As was witnessed this time last month a huge selloff is occurring and all crypto currencies are falling sharply, led by Bitcoin which has lost 9% in the past day. There are no altcoins in the green in the top 25 so we can only focus on ones that have not been hit that badly.

At the moment we are not sure if the bottom will be as far down as the February 6 dip. Total market capacity has fallen below $400 billion – or 17% in just two days. It currently stands at $395 billion whereas the low last month was at $280 bn, if things continue on this steep trend it will be there by the weekend.

There have been a number of factors causing the current selloff including more regulation in the US, a huge selloff by a Bitcoin whale linked to Mt Gox funds, and FUD over a Binance hack that never happened. Markets are still very immature and very reactive to these things and it will take a long time before things settle down and crypto traders have a little more confidence rather than repeatedly panic selling.

In the top ten Stellar Lumens has been the most resistant by only dropping 5% and Cardano has taken the biggest hit losing almost 16% in 24 hours. Looking out to the top 25 Lisk has been resilient and has only lost 3% while VeChain, Icon, Qtum, and Tron have all been hammered losing over 14% since this time yesterday.

Looking for an altcoin in the green is not easy this morning, there is only one though further down the list at 29th. Waves is up 4% and is the only one in the top 100 to be showing a gain this morning. CMC reports that Russian based blockchain platform Waves has recovered within 24 hours and is trading a little higher than this time yesterday. It has been relatively flat for the past seven days, discounting the spikes in either direction, and is up 16% on the three month chart.

The bears are running the show today which leaves the rest of us looking for the bottom and reversal.

FOMO Moments is a section that takes a daily look at the top 25 altcoins during the Asian trading session and analyses the best performing one, looking for trends and fundamentals.

In the ongoing saga of how U.S. regulators will ultimately handle cryptocurrency the SEC yesterday said it will require digital asset exchanges to register causing Bitcoin to dip below $10,000.

Cryptocurrency  Defined as Securities

The SEC released a statement that said online platforms trading in digital assets are considered securities under existing guidelines and therefore must register with the agency.

The SEC statement reads as follows

“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”

The SEC’s statement may have triggered fears among Bitcoin traders of further regulation to come. The statement from the regulatory commission follows some tense weeks of subpoenas and demands of information from exchanges as the commission strives to take some control over crypto trading.

Nothing the SEC has demanded is new policy, rather these are existing regulations that it is trying to fit to the as yet undefined crypto market. “The SEC continues to draw a line in the sand between securities and non-securities but without going so far as to name names,” said Spencer Bogart, partner at Blockchain Capital.

SEC Definition May Help Protect Crypto Exchanges

While that may be true up until now bonafide exchanges have relied on developing a steady reputation and their lawyers protecting their cause in order to separate themselves from being linked to scam operations or getting labelled as Ponzi or pyramid schemes.

In this way, a final and consistent ruling from the SEC naming cryptocurrency as securities may be a good thing. As the level of existing regulation may work to protect the exchanges and ultimately investors from further and possibly more difficult regulatory interference.

Whether or not an investment is legally a security generally relies on what is called the “Howey Test”.  This defined by a 1946 supreme court ruling that says a security involves the investment of money in a common enterprise, in which the investor profits primarily from others’ efforts.

Bitcoin suffered a bit from the Securities Exchange Commission announcement by dropping to $9,500 but recovered back to nearly the $9,800 mark by the end of the day.