Mining Pool Threatens Bitcoin Gold, Bitcoin Diamond, and Bitcoin Private With Annihilation

Cryptocurrency mining pool ‘SharkPool’ has recently threatened to annihilate “alts who dare bearing the Bitcoin name.” The pool was launched by a prominent bitcoin cash startup that created it to attack altcoins that it believes doesn’t fulfill Satoshi Nakamoto’s original vision.

The mining pool has revealed through a tweet it’ll attack altcoins by “exclusively” mining empty blocks on their networks and selling the proceeds for BCH. Its attacks will come as “all alts, including forks and splits are acts of war against Bitcoin and are going to be treated as such.”

The mining pool is being operated by BCH startup CashPay Solutions,  which according to some backed the Satoshi’s Vision (SV) side of the recent Bitcoin Cash hard fork, which was also backed by self-proclaimed Satoshi Nakamoto Craig Wright. The firm runs various BCH-related services, including e-commerce platform Cryptonize.It.

As CryptoGlobe covered, Wright implied the BCHSV side would attack the opposing side – Bitcoin Cash ABC – with superior hashrate to mine empty blocks on the network and stop transactions from being processed. It wasn’t able to pull off its attack, as ABC currently has superior hashrate.

According to a recent tweet, SharkPool’s first targets are Bitcoin Diamond (BCD), Bitcoin Gold (BTG), Bitcoin Private (BTCP), and Bitcoin Interest (BCI). Per its tweet, these chains “are unsafe and will cease to exist.”

The BCH startup’s CEO, Ari Kuqi, has via Twitter also claimed that “all alts, including forks and splits” are being considered acts of war against Bitcoin. The mining pool manages to attack different cryptocurrencies as it attracts miners with hashpower in different algorithms with its plan.

Notably, SharkPool’s tweet mentions the sharks “want to sharpen their teeth” and that they are “hunting for appetizers.” This implies that these blockchains are being the first ones to be targeted as it builds up hashrate to attack larger ones – potentially Bitcoin Cash ABC.

SharkPool’s Annihilation Plan

To take down the cryptocurrencies mentioned above, SharkPool’s annihilation plan will see it dominate the hashrate in them to first off start mining empty blocks. Mining empty blocks will stop transactions from going through on their networks.

Over a long period of time, this would create a transaction backlog that would make the cryptocurrency’s network virtually useless. The second part of its plan sees it sell the rewards it gets from mining empty blocks for BCH.

This not only supports BCH by creating demand and potentially driving up its price, but it also creates selling pressure on the attacked cryptocurrency. If all newly created coins are dumped on the market, and existing coins can’t move, the cryptocurrency’s price can plummet and see users abandon it.

At press time, it appears none of the threatened blockchains has reacted. CryptoGlobe has reached out to SharkPool for comment.

Update: SharkPool responded to CryptoGlobe's request for comment:

This week is sharkweek, expect to see the first empty blocks to be mined on an altcoin within 24 hours. It’ll be one of the ‘bitcoins’ (gold, diamond, platinum etc).

BBC: Facebook Planning to Launch ‘GlobalCoin’ in Q1 2020

Siamak Masnavi

Social networking giant Facebook is planning to launch its own cryptocurrency (internally dubbed "GlobalCoin") and crypto-powered global payments network (internally called "Project Libra") worldwide by Q1 2020, according to a report published earlier today by BBC News, the world's largest broadcast news organization.

Project Libra's Origin Story

  • 8 May 2018: In a post on Facebook, David Marcus, the former head of Messenger, who was at that time also a board member (since December 2017) of crypto exchange Coinbase, revealed that he was leaving that role to set up a new group focused on exploring applications of blockchain technology across the whole of Facebook.
  • 13 December 2018: Cheddar reported that Facebook’s blockchain group is planning to "potentially disrupt the entire payments industry":

"At a private dinner Facebook hosted during a recent crypto conference, one attendee told Cheddar that Facebook employees pitched the idea of creating a decentralized digital currency for the social network’s 2 billion users."

  • 21 December 2018: Bloomberg reported that Facebook was creating its own cryptocurrency (a stablecoin) for money transfers within its highly popular messaging app WhatsApp.
  • 28 February 2019: The New York Times confirmed Bloomberg's earlier story, and said that, according to its sources, this project was "far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers."
  • 8 April 2019: Nathaniel Popper, one of the two journalists who wrote the report in the New York Times, provided this update (on Twitter) about Facebook's cryptocurrency project:
  • 2 May 2019: The Wall Street Journal reported that Facebook was "recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system," and that the core part of this initiative (code-named "Project Libra") is "a digital coin that its users could send to each other and use to make purchases both on Facebook and across the internet." Furthermore, this report said that, according to people familiar, Facebook was talking to "financial institutions including Visa Inc., Mastercard Inc. and payment processor First Data Corp." about investing in this project.
  • 17 May 2019: A report by Reuters said that FinTech company Libra Network was registered in the Republic and Canton of Geneva on May 2. Looking at the entry for Libra Networks, which was published on May 7 in the Swiss Official Gazettte of Commerce (SOGC), tells us:
    • Libra Networks LLC (registration number: CHE193533388) has its registered office in Geneva.
    • According to the English translation, the stated purpose of this company is "provision of services in the fields of finance and technology, as well as the development and production of related software and infrastructure, particularly in connection with investment activities, the payment operation, the financing, identity management, data analysis, big data, blockchain and other technologies."
    • The share capital is CHF 20,000 (100 shares, each with a nominal value of CHF 200); all of the shares are owned by Facebook Global Holdings II, LLC.

Facebook's Stablecoin: GlobalCoin

Here is what we have learnt from the BBC News report:

  • Facebook "is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020."
  • The plan is to start testing the new cryptocurrency (some kind of stablecoin), GlobalCoin, by the end of 2019.
  • Facebook has been getting "advice on operational and regulatory issues" from the UK's central bank governor Mark Carney (whom Facebook founder and CEO Mark Zuckerberg reportedly met in April) and from U.S. Treasury officials.
  • Facebook is also in talks with global remittance firms such as Western Union "as it looks for cheaper and faster ways for people without a bank account to send and receive money."

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