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As Nvidia’s Cryptocurrency Mining Sales Drop, ‘Cryptojacking’ Flourishes

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U.S. chipmaker Nvidea (NVDA) has reported a cool down in mining revenue during the third quarter, likely in response to a volatile cryptocurrency market. At the same time, stealth mining or ‘cryptojacking’ is on the rise, with the list of websites leeching off user CPU numbering in the thousands.

Nvidia’s Mining Operations Slide

Nvidia’s recent earnings call revealed a sharp decline in mining-related revenues. The segment generated some $70 million in sales during Q3, less than half of the $150 million generated in the second quarter.

Jens-Hsun Huang, the company’s CEO, said that graphic card sales would continue to benefit from the growth of mining, but that cryptocurrency will remain a “small, but not zero, part of our business.”

NVDA shares have risen dramatically over the past year, setting fresh record highs on a regular basis. The growth and widespread adoption of blockchain technology has been a key cog in the firm’s growth, with some analysts noting a  correlation between bitcoin and Nvidia prices. However, the yang of that relationship is the impact of a bitcoin price collapse on NVDA shares.

Last month, analysts at TD Ameritrade said firms like Nvidia could become the center of a selloff should bitcoin’s market price collapse. So far, that scenario has not come to fruition. In fact, the complete opposite has occurred.

Even with the disappointing drop in mining-related revenues, Nvidia topped quarterly profit and revenue forecasts.

Cryptojacking on the Rise

Despite Nvidia’s recent mining woes, websites are finding new ways to mint cryptocurrency on the backs of their users. There are now 2,500 websites that have been confirmed to mine on users’ CPUs without them their knowledge.

The finding was apparently uncovered by security researcher Willem de Groot, who found 2,496 e-commerce websites using cryptojacking techniques to leverage CPU power for mining purposes. These websites have been confirmed to use the infamous Coinhive, a JavaScript miner for the Monero blockchain.

Of course, the digital currency community has long been in the loop about the pervasiveness of cryptojacking, but may not have known the extent of the practice. Last month, Hacked reported that The Pirate Bay was back to mining cryptocurrency without users’ consent via the same Coinhive program de Groot targeted in his research.

Users who want to block mining from taking place on their CPU should use an adblocker or install an adequate Chrome plugin.

More people are relying on anti-mining software to protect their computing power. Malwarebytes says it blocks 8 million cryptojacking requests per day, a clear indicator of just how popular mining has become. In its recent monthly report, the company said it blocked nearly 248 million requests during October, most of which were for Coinhive. Analysts say this figure likely understates the extent of this so-called mining plague.

Malwarebytes is one of the first major antivirus companies to support the blocking of mining scripts.

Mining has become a highly profitable endeavor as more cryptocurrencies enter the fold. At the time of writing, there are nearly 1,300 cryptocurrencies in existence, a figure that will rise significantly as more businesses issue token raises. Among them, roughly half are not mineable, according to CryptoMarketCap.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 497 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Government of Malta Passes New Cryptocurrency Legislation

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Malta’s embrace of digital currency came full circle Tuesday after lawmakers passed three separate crypto-related bills that could transform the island nation into a blockchain powerhouse.

‘First in the World’

CCN broke the news Wednesday that all three bills have gone through Malta’s legislative process, putting them on track for full implementation. The second reading of the bills was carried out Tuesday night in a plenary session that began at 6:00 p.m. local time, parliamentary records show.

The approved bills include the Virtual Financial Assets Act (VFA),  the Innovative Technology Arrangements and Services Act and  the Malta Digital Innovation Authority Act (MDIA).

VFA deals specifically with the regulation of initial coin offerings (ICOs), ordering new token projects to publish whitepapers and detailed descriptions of the entire project.

The  Innovative Technology Arrangements and Services bill governs blockchain startups and other businesses looking to leverage distributed ledger technology.

MDIA will effectively serve as an industry-specific governing body that will support the development and implementation of blockchain-based regulations.

Parliamentary Secretary Silvio Schembri said the bills were a ‘first in the world’ development and also announced the person heading the newly created MDIA:

“Today Maltese Parliament unanimously approved 3 bills on DLT/blockchain, a 1st in the World. Honored to have driven these bills. Announced that Mr Stephen McCarthy will be the CEO of the new #Malta Digital Innovation Authority.”

Blockchain Island

Malta has quickly emerged as a prominent player in the blockchain industry, having already lured major exchanges and businesses to its borders. Binance has announced plans to relocate to the tiny Mediterranean nation and earlier this month disclosed that it has opened a bank account in the country. OKEx, another prominent exchange, has also announced plans to make Malta its new home.

Binance and OKEx are the world’s largest cryptocurrency exchanges by trading volume, each processing more than $950 million in daily transactions.

Binance’s decision to relocate was largely driven by its desire to enable fiat-to-crypto deposits and withdrawals, something Malta says it will accommodate through local bank partnerships.

Changpeng Zhao, Binance’s CEO, has described Malta’s regulatory stance toward blockchain and cryptocurrency as “logical, clear and forward-thinking,” adding that “dozens” of similar exchanges are planning to relocate to the country.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 497 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Bithumb Hack Prompts South Korea to Hasten Cryptocurrency Regulation

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South Korea’s second-largest cryptocurrency exchange suffered a security breach on Wednesday, prompting local authorities to hasten their adoption of stricter regulations.

Bithumb Hack

Bithumb confirmed Wednesday that cyber criminals “seized” 35 billion won ($31.6 million) worth of digital cash in an apparent attack targeting user accounts. The exchange halted deposits at approximately 00:53 UTC and began a wholesale transfer of funds to cold storage to prevent further theft.

“We checked that some of cryptocurrencies valued about $30,000,000 was stolen,” Bithumb tweeted Wednesday. “Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet.”

The exchange has confirmed that it will fully compensate affected users.

An earlier update on Bithumb’s Twitter account reveals that a security upgrade was being carried out last week where it transferred to a cold wallet for safe storage. However, it is unclear whether the upgrade is linked to the theft.

In terms of trade volume, Bithumb is the world’s sixth-largest cryptocurrency exchange. The platform processed more than $355 million worth of digital currency transactions in the last 24 hours, according to data provided by CoinMarketCap.

Bithumb is the second South Korean exchange this month to have been hacked. Less than two weeks ago, more than $37 million was compromised in a coordinated attack on Coinrail. The attackers went after the exchange’s coins and lesser-known ERC-20 tokens.

South Korea to Boost Regulation

South Korea’s financial regulators have announced plans to implement stricter guidelines for virtual exchanges, and to do so more expeditiously than previously planned. The announcement, which came on the heels of the Bitthumb attack, follows months of deliberation about whether to regulate cryptocurrency exchanges like banks and other financial institutions.

As CCN notes, cryptocurrency exchanges are presently regulated as “communication vendors,” which means virtually anyone can launch an online trading platform. This designation prevents direct oversight of digital currency exchanges by financial regulators.

New crypto regulations are expected to be rolled out in the coming months, which will put South Korea’s financial authorities on par with their counterparts in the United States and Japan. In those countries, cryptocurrency exchanges must comply with laws pertaining to security and consumer protection.

Park Yong-kin, a committee member of the National Assembly, has championed stricter regulations since last year. According to local media, his views are now being echoed by other government officials.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 497 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Chinese President Xi Jinping Comes to Terms With Blockchain

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Chinese President Xi Jinping may not like cryptocurrencies, but he is a fan of the blockchain. For a nation that has cracked down on the cryptocurrency industry more than any other jurisdiction, as evidenced by a ban on initial coin offerings (ICOs) and bitcoin trading in the mainland as well as a target on bitcoin mining, the process by which more coins are created, his acceptance of the blockchain is surprisingly refreshing. He reportedly said:

“A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications.”

While President Xi Jinping’s celebration of the blockchain is juxtaposed by the country’s intolerance for cryptocurrencies, it’s a step in the right direction. He said he wants China to “become the global center” for technological innovation.

China has seemingly been able to separate the blockchain from cryptocurrencies considering that in spite of the broader ban in Beijing blockchain startups and government officials have been working together to unlock the potential of the technology in the region, as CNBC reported. Meanwhile, as anecdotal evidence, hundreds of Chinese locals attended a recent blockchain conference in the United States where a pair of sessions were given in Mandarin.

But Bobby Lee, who is the co-founder of China’s maiden bitcoin exchange BTCC, which has since rebranded and whose China trading capabilities have been shuttered, suggests that the lines surrounding blockchain technology often get blurred.

Technological Revolution

President Xi Jinping in his speech to the Chinese Academies of Sciences and Engineering acknowledged the feverish pace at which technological innovation has been unfolding in the 21st century, saying: “A new round of scientific and industrial revolution is reconstructing the global innovation map and reshaping the global economic structure.”

But in key ways, Xi has shut the door to that innovation by clamping down on what once comprising the lion’s share of bitcoin trading. But if you ask Lee, he reportedly believes that at some point, the ban on bitcoin trading will be eased and China could adopt a licensing process, he’s just not sure when.

Blockchain pioneers including the likes of Wences Casares and Joseph Lubin have offered perspective on cryptocurrencies that might serve Xi well, with Lubin recently saying that “cryptocurrencies should remain unfettered” as it relates to regulation. Casares, the CEO of blockchain startup Xapo, once described the harmony in which the blockchain and bitcoin are designed to operate, saying: “If you were to remove the bitcoin, miners would disappear and so would the blockchain.”

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 23 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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