QTUM Surges 24% After Announcement Relating to Apple Pay and Samsung Pay

Siamak Masnavi

On Thursday (March 14th), Qtum (QTUM) surged over 26% after the Singapore-based Qtum Foundation and London-based FinTech startup Zuex delivered some good news: Zuex, which calls itself "The World's First Crypto Mobile Payment and Investment App", would be listing "QTUM tokens in its digital payment wallet, to allow users to spend QTUM for all point-of-sale payments."

On its website, Qtum is described as "a global project that aims to be the bridge between the Bitcoin and Ethereum communities, the real world and blockchain world" that is backed by "some of the most notable blockchain players, traditional Venture Capitalists, and executives from some of China’s largest technology companies."

This is what Abra wrote in July 2018 in its "Ultimate Guide to Altcoins" document about QTUM:

"A rarity in the blockchain world, Qtum is also backward compatible with Ethereum contracts as well as Bitcoin gateways and will remain backward compatible even after updates. This allows for easy platform adoption and a 'plug and play' methodology that leans upon what other technologies in the space have done well."

And this is how Poloniex described Qtum in a June 2018 blog post:

"The Qtum (pronounced Quantum) blockchain is a public smart contract platform that combines aspects of both Bitcoin and Ethereum. The Qtum team chose Bitcoin (and its UTXO model of record-keeping) as the base of the protocol because of Bitcoin’s proven track record of security and stability. On top of this base, Qtum integrates the Ethereum Virtual Machine (EVM) (and potentially other VMs in the future) in order to support a diverse decentralized application ecosystem. QTUM is the native token of the Qtum blockchain, and acts as both gas for Qtum smart contracts and as a reward for securing the network through staking."

As for Zeux, it says that it provides "a simpler way to pay, bank and invest by integrating all these services onto one place — the Zeux app," leveraging "a long list of third-party partners to provide integrated investment products to its customers."

Miguel Palencia, Chief Information Officer of QTUM Foundation, had this to say about the partnership with Zeux:

“We’re excited that Zeux has added QTUM to its app. This adds a tremendous amount of additional utility for our valued community who can now use QTUM for all point-of-sale payments with merchants that accept Apple Pay, and Samsung Pay. Zeux has created a seamless way for people to use crypto in their day-to-day lives without the friction of choosing from a select group of merchants who accept crypto directly.”

Here is the Qtum team announced the news on Twitter at 13:44 UTC today:

The Qtum Foundation's blog post says that "Zeux will launch publicly its multi-function app in April where it will become available in Europe."

The QTUM price surged over 41% from $2.16 at 13:30 UTC to an intraday high of $3.06 at 14:30 UTC, i.e. within 45 minutes of the announcement, but it has slightly come down since then; at press time (17:50 UTC), QTUM is trading at $2.68, up over 24.07% in the past 24-hour period, as you can see in the 24-hour chart below (provided by CryptoCompare):

CC 24 Hour Chart for QTUM - 14 March 2019.png

Featured Image Courtesy of Qtum Foundation 

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Trans-Fee Mining Crypto Exchange 'FCoin' Insolvent After Mistakenly Being Too Generous

One of the first cryptocurrency exchanges to adopt the controversial trans-fee mining (TFM) model, which has been called a “disguised ICO” has paused trading and withdrawals over a shortage of crypto worth up to $130 million.

According to a statement published by FCoin’s founder Zhang Jian, a former Huobi CTO, the exchange is now unable to process withdrawals as its reserves are down by between 7,000 to 13,000 bitcoin, worth over $130 million at press time, over an issue that’s “a little too complicated to be explained in a single sentence.”

Zhang’s statement details the cryptocurrency exchange wasn’t hacked, nor is it pulling an exit scam on its users. He detailed that an internal system error gave users more mining rewards than they should have received, noting the error wasn’t detected for a long period of time.

The transaction-fee mining model, which saw FCoin’s trading volume surpass $5 billion per 24 hours numerous times, sees the cryptocurrency exchange incentivize trading via its own token, FT. FCoin reimbursed users for transaction fees paid in BTC or ETH with FTs until 51% of the coin’s supply was distributed, and redistributed 80% of the BTC and ETH it collected to those holding FT tokens.

The controversial model drew criticism and saw Zhang defend it, claiming it was a misunderstood invention. At the time, he said:

If you look back at history, all new things were not recognized at the beginning. Many were believed to be fraud. Jack Ma was recognized as a fraud when he first promoted the internet in China.

Various cryptocurrency exchanges started adopting the TFM model shortly after, with research showing these platforms had unusually thin order books and low traffic taking into account the trading volumes they had.

According to Zhang, the errors in FCoin’s system gave away too many tokens in mining rewards from mid-2018 to mid-2019, when a complete back-end auditing system was implemented. As throughout 2019 the price of FT kept on dropping, Zhang and his team reportedly used their own funds to buy back tokens and drive up demand, a decision he claims was an error.

This, as it gave users a chance to sell their FT tokens and withdraw as much as possible from their accounts, while FCoin bought up tokens that kept on losing value. Zhang’s announcement came shortly after FCoin suspended its platform over a risk-control issue.

Zhang is now reportedly manually processing users’ withdrawal requests sent via email. The founder of the exchange claimed he will “switch tracks” to start again, and noted he hopes he can use the profits made from new ventures to “compensate everyone for their losses.”

Featured image via Unsplash.