Status cryptocurrency guide advises where to buy and how to buy Status. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Status as well its status in the world of cryptocurrencies.
Status, Monday, 2021-03-01
- 1 What Is Status?
- 2 Beginner's Guide to Status
- 3 Where and How to Buy Status?
- 4 Status Markets
- 5 Where to Spend or Use Status?
- 6 How Does Status Work?
- 7 Status Regulation
- 8 Is Status Secure?
- 9 History of Status
- 10 Status Videos and Tutorials
- 11 See Also
What Is Status?
This is a mobile operating system that is designed to help users interact more effectively with the Ethereum network. It is created as a special decentralized browser and a private messenger to facilitate accessing the Ethereum network right from a hand held device such as smartphone.
The architecture of the network is designed to ensure it operates as a light client node on the Ethereum system making it easy to access the Decentralized Applications (DApps) in the Ethereum network. This implies that Status has simply opened the door to massive appreciation and adoption of blockchain products especially those located on the Ethereum system.
By operating completely embedded on the Ethereum network, it is important to see it as an extension of the network though with a great deal of independence. With this consideration, users who join the Status on their phones use the Status Light Client that allows them to access and work with the Ethereum Blockchain without having to download the entire Ethereum blockchain.
The Status design is designed to be open source so that any person can participate in its development and growth. Note that this design, especially consensus model is pegged to the Ethereum’s blockchain and therefore bound to change when Ethereum finally shifts from proof of work (POW) to proof of stake (POS) algorithm. Here is the complete review of Status.
Beginner's Guide to Status
Status has revitalized the cryptocurrency niche by providing a new way to take blockchain products to the people. Bitcoin demonstrated that it was possible to operate as a completely decentralized and peer2peer network without involving centralized entities while Ethereum introduced the smart contracts and DApps (decentralized applications). Now, it is time to move on and Status has provided the perfect platform to elevate blockchain network to that next step; taking it to people’s hands.
As a decentralized messenger that facilitates access to the Ethereum blockchain from mobile devices, it is time that everybody gets a feel of blockchain technology. The app makes it easy even for those with little knowledge about cryptocurrencies to join and enjoy related products. You might need an application on the Ethereum network but do not want to get down to downloading the entire chain; Status is there for you. If you thought that WhatsApp was the ultimate messaging app, wait until you try Status.
Many people hearing of Status for the first time want to join and enjoy its many benefits. But hold on. It is important to ensure you understand it and how it works before making own decision to join or not to join. This is why this guide was created. It is a comprehensive analysis of every Status system component to help people make the right decisions. From how it works to advantages and associated risks, all the answers to your questions about Status are right here. Welcome to discover everything you wanted to know and more about Status.
Where and How to Buy Status?
The unique architecture of Status and its highly ambitious team makes almost every person who discovers it want to own some of its native coins. Here are the two main methods you can use to buy Status coins.
- Buy Status coins from the markets: The cryptocurrency markets/ exchanges are the main platforms where you can buy crypto assets such as Status coins. These markets operate the same way forex markets work. However, they deal with crypto assets such as Status coins as opposed to fiat currencies.
- To buy Status coins, you are required to open a trading account with the selected exchange and then verify the account using personal information such as phone number and proof of location. Note that the verification information can vary depending on the selected exchange. Some of the top exchanges that list Status include Liqui and Binance.
- Buy directly from those who already the Status coins: The popularity of cryptocurrencies has been growing steadily over the years. This has resulted in the emergence of clubs that aim at bringing together crypto enthusiasts. As the growing communities come together, the clubs have also become a reliable avenue for those who want to make direct purchases.
- The good thing about these clubs such as London Cryptocurrency Club is that they do not have complex procedures such as those put by the exchanges. For example, you can agree to pay the Status coins using fiat or even hard assets. However, you need to appreciate that getting a person who is interested in selling the exact number of Status coins you need to buy in a club is never easy.
Have you made a decision to join the Status cryptocurrency? Here is where you should start; acquiring a cryptocurrency wallet. Cryptocurrency wallets are locations designed to hold your Status coins (SNT) when you the purchase process is completed. However, it is important to venture deeper into the term cryptocurrency wallet before deciding the actual one to go for.
While the common definition of a cryptocurrency wallet is a digital location for storing crypto coins such as SNT, it is important to appreciate that it is indeed a misnomer. A closer look at digital assets reveals that they only reside in their native networks. They cannot exist anywhere else. Therefore, what exactly does a cryptocurrency wallet store?
The Status wallet stores a set of codes that links and allows you to take control of your SNT in the Status network. These codes are the private keys, the public keys, and the seed. The private keys help to identify your coins, call them to live, and facilitate transactions in the network. Like the name suggests, private keys is a private code and should be kept all the time. Unlike the private keys, the public keys help to point at your wallet. This means that the code is used as an address by those who want to pay you in SNT. Therefore, do not feel worried to provide your payers with the public keys.
The last code generated by a cryptocurrency wallet is the seed. This code is not used for daily operations. Rather, it is used to help regenerate the private keys in case of a loss. It is very important that you store the seed carefully because it might be the only link for helping you recover lost SNT. The main wallets that support Status include;
- The Status Hardwallet: This is a unique hardware wallet introduced in November 2017 by the Status development team. Unlike others such as Trezor, it allows users to make transactions without connecting to a computer.
- The Ledger Nano S: This is another hardware wallet that has won the hearts of the cryptocurrency community because of its unique security features. For example, there is a physical button that must be pressed when initiating transactions. This means that even if someone hacks the wallet, siphoning the tokens will be impossible without physical access to the wallet.
- MyEtherWallet: This is an online wallet that allows users to interact directly with the blockchain right on the computer browser. It is a light option for interacting with the Status network and run transactions with ease.
- Other wallets that support Status include Trezor and Parity.
Where to Buy Status with Credit Card?
Do you have some cash and want to buy Status coins? Most of the exchanges that list SNT do not accept credit cards. Therefore, you have to follow two steps. First, you need to buy an alternative coin such as Bitcoin from a platform that accepts credit cards such as Coinmama. Then, use the Bitcoins to buy SNT from exchanges such as Binance and Bittrex.
Where to Buy Status with PayPal?
There is no method that can be used to buy Status with PayPal. PayPal considers the exchanges as direct competitors and, therefore, discourages payment to their networks. Therefore, those who have cash in their PayPal are only left with one option of following the longer route; withdrawing to the credit cards or banks. Then, start the process of buying Status from there.
How to Buy Status with Wire Transfer?
To buy Status using bank wire transfer is relatively direct when using an exchange that accepts wire transfer such as Bitfinex or UPbit. However, note that UPbit only accepts fiat for South Koreans only. To but from an exchange such as Bitfinex or UPbit, the first step is creating a cryptocurrency wallet. This is the location that will hold the coins after the transaction process is over. Then, follow the following procedure.
- Open and verify a trading account.
- Select the number of Status coins to purchase.
- Select pay with wire transfer and provide bank details.
- Wait for 3-4 days for the Status coins to hit your trading account.
- Transfer the Status coins to your Status wallet.
If you want to buy Status coins from a market that does not accept wire transfer, the process will have to start from a different exchange such as CEX.io. Visit CEX.io to buy Bitcoins and then use them to buy Status coins at the preferred exchange.
Where to Sell and Trade Status?
Do you have some SNT and have been thinking of the best way to optimize return on investment (ROI). One of the top options is trading in the markets. Cryptocurrencies are traded in the crypto exchanges in the same manner that fiat currencies are traded. The exchanges are platforms that bring buyers and sellers together so that the price of SNT and other digital assets are driven by forces of the markets.
When selecting the platforms to trade and sell SNT, it is important to appreciate that they have become the easiest targets by attackers in the crypto industry. The interest for hackers is driven by the fact that the exchanges are centralized and pool together a lot of digital assets. Some of the platforms that have been hacked recently include YoBit of South Korea and Coincheck. With the threats that are targeted at the exchanges growing year after year, people are left wondering about the best exchanges to use. Here are some useful tips you can apply to select the top cryptocurrency exchange.
- Only go for the cryptocurrency exchange that has been in the market for some time and the community can talk positively about it. Some communities to consider include Reddit and Bitcoin Talk.
- Go for the exchanges that have low transaction fee so that all the profits do not get gulped by the exchange.
- Look for the trading platform that provides advanced trading metrics that allows even new traders understand the markets easily and trade like experts.
- The best exchange should have good focus on security through features such as 2-factor authentication and use of cold storage.
By mid-2018, the number of trading and selling platforms that had accepted to list Status had grown significantly. Here are some of these exchanges; Huobi, OKEx, Idax, and Binance.
How Much Are the Transaction Fees of Status?
The average transaction fee of Status is $0.00026. This means that the cost is lower than what most networks including the host Ethereum charge. Because the fee follows the price trend, it is likely to shift upwards if the price goes up in the coming days.
As the society continues to appreciate the roles of cryptocurrencies, the demand has taken an upward shift. Now, enters Status network that is taking the blockchain solutions and products to the people’s phones. Its appeal has made a lot of markets agree to list it even though it is still very young. Here is a sample of top Status markets.
This is a Hong Kong-based cryptocurrency market that was started in mid-2017 by Changpeng Zhao. Zhao was concerned that insecurity and the high cost of transactions were making it difficult for more people to join and use cryptocurrencies. Therefore, he launched the exchange and also introduced the native token, BNB.
The biggest advantage of using Binance when trading and selling Status is its low transaction charges. The transaction cost at Binance is only 0.1%. This makes it one of the cheapest trading platforms in the industry today. But this is not all. If you pay the incurred transaction charges with BNB or trade BNB with Status, the cost comes down to 0.05%.
Binance also features a long list of cryptocurrencies that users can pair with Status to optimize profitability. Whether you prefer to pair Status with older cryptocurrencies such as Ether or newer ones such as Bitcoin Cash, Binance is a great option to consider. Note that the exchange has moved some of its servers away from Mainland China to guarantee its users of seamless operations even as China continues with the onslaught on crypto networks.
While Binance is a great option for Status traders, it is not without a few issues. The exchange operates as a cryptocurrency only platform. This implies that those with fiat currencies cannot directly access the market. Instead, they have to start from another platform such as Kraken or Changelly to buy an alternative coin and exchange for SNT at Binance.
Bittrex is one of the leading cryptocurrency markets in the globe today. It was started in 2014 by Bill Shihara who was concerned that trading was becoming unreliable and could compromise uptake of cryptocurrencies. Therefore, he teamed with other crypto enthusiasts to create a trading market that was simple, reliable, and highly secure.
To achieve the espoused wide mandate, the cryptocurrency focused on strictly adhering to the local Nevada laws and US anti-money laundering rules. It is because of this focus that all traders on the platform are required to provide a lot of personal information before a trading account is created. You will need to provide name, date of birth, email address, and phone number before your account can be verified. Interestingly, it only takes about 30 minutes to have a trading account created once all the info is provided.
The transaction fee at Bittrex is relatively higher than the average industry rate. You will be charged a flat of 0.25% for every traded volume. Note that unlike other markets that provide rebates for high volume or special discounts on transaction fee, Bittrex has none of them. Despite this, the exchange has been attracting many users because of its commitment to offering optimal security to their assets.
To guarantee users of utmost security, reduce the danger of loss, and win their trust, Bittrex uses three methods. It employs 2-factor authentication and a multistage wallet strategy that ensures 80%-90% of the traders' coins are stored offline in most of the time. Besides, it comprehensively reviews all the assets being listed on the platform to ensure that only the stable coins are listed. Some of the coins that Bittrex was hesitant to list because they were thought unstable include ZenCash and Bitcoin Private.
This is a Hong Kong-based cryptocurrency exchange that was started in 2012 by a cryptocurrency enthusiast, Raphael Nicolle. The primary goal of Nicole was to reach the US market and take advantage of the fast-rising demand for digital assets.
The strongest selling point for Bitfinex is that it lists very many trading assets. This means that every trader is sure of getting many options to pair with Status and optimize profitability. To enjoy higher returns, make sure to review the potential of such assets before pairing them with Status.
Having been in the market for about six years, Bitfinex has mastered the art of supporting traders to ensure they make the right speculative decisions. Therefore, it provides comprehensive features including Stop orders, Trail stop, One cancels others, and Post-only limit orders among others.
The transaction fee at Bitfinex starts at 0.1-0.2%% of the traded volume for both the taker and maker. This fee only goes down after transacting the first 500,000 dollars in the exchange. Note that additional features such as margin trading, and using wire transfer attract additional fees. If you move very large volumes of more than $10 million, the maker is not charged anything, whole the taker fee also goes down to 0.18%.
Other great features that make Bitfinex a great market include a high margin trading of 3:1 leverage. This trading is further supported by margin loans granted through the lending market using a system referred to as Swap.
The biggest challenge of using Bitfinex is that though a lot of efforts are directed to perfecting it, hacking has been very rampant. In May of 2015, Bitfinex was hacked and a lot of crypto coins siphoned away. In 2016, another hacking was successful and coins worth 72 million stolen. Now, a lot of people have been wondering whether it is really safe to trade at Bitfinex.
This is among the latest cryptocurrency markets that have attracted a lot of following especially in South Korea and the Far East. It was started in the last quarter of 2017 by Kakao. Kakao is known for developing one of the largest messaging applications. When Kakao developed interest crypto markets and teamed with Bittrex to launch UPbit, the community was optimistic that the trading platform would be a great one.
The main focus of UPbit is helping to bring as many cryptocurrencies as possible to traders. For example, Kakao indicates that when UPbit opened, there were more than 100 listed crypto assets. The platform also picks new assets promptly to ensure that traders always have new opportunities to invest and see them grow with time.
The transaction fee at UPbit is 0.25%. This is considered average compared to other exchanges such as Bittrex. However, it still lags behind when compared to other exchanges such as Binance and KuCoin that charge as low as 0.05%. To make the exchange more appealing, UPbit allows users to make deposits and withdrawals in fiat currencies.
The biggest challenge for using UPbit is that the only fiat currency accepted in the system is South Korean Won. This makes it a sort of South Korea thing. If you are from outside South Korea, you are required to use cryptocurrencies to trade Status.
Other markets that list Status include Latoken, Gate.io, and Liqui. Note that it is important to always check whether the selected market is available to people from your jurisdiction.
Value of Status
Status is one of the top cryptocurrencies in the market today. Though the price has not gained much since its release in mid-2017, its market capitalization thrust it to the top 50 cryptocurrencies by 19th June. On June 19th, the market capitalization of Status was $256,422,000 at a price of $0.0740. This growth put the cryptocurrency well ahead of other top networks including Nebulas and Ardor that took positions 52 and 62 respectively based on market capitalization. The community is highly optimistic that the value will keep going up in the coming days.
Is It Profitable to Invest in Status?
While the Status development team indicates that the design of the Statius was meant to help users make payments in its system, it is now emerging as one of the most desirable investment options. For investors, the primary target is trying to establish whether the price of the native tokens will increase.
Though the price has not changed much between launch and mid-2018, the features lined by the development team makes the network highly desirable. For example, more people are expressing the desire to join the network to grow together with it as features such as Status Teller Network, and Sticker Market release nears. With more people holding a positive view of the network and purchasing the native tokens, the price is expected to continue growing and yielding higher ROI. Always remember that crypto tokens profits will depend on many factors including the looming regulations and new crypto networks. For example, if the regulations are harsh to the cryptocurrencies, profitability of Status is likely to recede.
Where to Spend or Use Status?
The primary goal of most cryptocurrency out there is to become accepted for direct payment for goods and services. This can be seen from the top networks such as Ethereum and Bitcoin. However, no trader or store had come out to indicate it accepts payment in SNT by mid-2018.
Can Status Grow to Become a Major Payment Network?
Yes, Status can grow into a major payment network. However, this is a lengthy and bumpy road full of stiff competition. Because of its current great appeal, low transaction cost, and great security, Status can grow into a major payment network. However, the following will be needed to make the growth possible;
- Expanding the focus on payment from simply targeting messaging to include direct payment to stores.
- Focusing on working with payment services and banks that have a lot of clients targeting to facilitate payments.
- Focusing on building partnerships with many companies and influential stakeholders such as social networking companies.
How Does Status Work?
Status network is being referred to as a revolution in the blockchain network. It has created a new way of looking at blockchain applications by ensuring that more people can join and participate in their development and progressive growth.
The Status Network
The Status system is designed to be an open source and completely free for any person willing to join. The network operates using the native tokens referred as SNT. This is the utility token designed to help power the Status network. From a general viewpoint, Status is free because you can join and communicate with it. However, SNT are needed to access various features of the system.
Those who hold the coins are also part of the system and help to steer the network. They are called to make suggestions when there are conflicting issues or a major decision about the network development is being made.
- Besides the native tokens, Status Network also uses usernames to help prevent spam. The development team used the Ethereum Name Service to ensure that all those who hold SNT can be identified with a username. Well, look at it the same way Facebook requires people to use names in its system or Twitter recognizes badges. To hold your username, you are required to deposit some SNT to act as premium.
The Status Mobile Ethereum Client
The Status Mobile Ethereum Client is designed for both iOS and Android systems. Users are required to download from the Status website to access the system and all the features. The main features of the client include;
- The decentralized push notification markets: This is feature is designed to help replace the legacy social network design where the network owner and advertisers were the drivers and the users are only passive/ powerless. The push notification markets help to take power and control to the user; call it reinventing the system.
- This is achieved by allowing the user to select the node that provides services to him/her. It also permits the user to choose the nature of push notifications they would like to see. This is not all. The user is also provided with the option of selecting the level of preferred privacy.
- Note that unlike the current social media services that provide push notifications for free, you will be required to pay for it in the Status system.
- The community curation: This model works like the common upvoting and downvoting system used at Reddit. At Status, the users spread in the network can opt to curate what is displaying in the apps. The Status system employs an algorithm that factors stake that a user holds when he/she is expressing a like or dislike for the content.
- The Status tribute to talk: The stakeholders spread in the Status system can set the minimum SNT that users need to pay as a tribute in order for others outside the system to reach and communicate to them. When a user from outside the network deposits the tribute and communicates, the amount is added to the original messenger.
The Status design has greatly excited the community because of the many applications they can access on the Ethereum system. Some of these include Gnosis, Etherisc, Ujo, and Oasis Exchange. The development team plans to add other features including Status Teller Network, Sticker Market, and Decentralized Application Directory.
Does Status Use Blockchain Technology?
Yes, Status employs blockchain technology. As a primary system, the main focus is providing users with a decentralized platform that allows them to operate on a peer2peer basis. Because Status works attached to the Ethereum system, it is important to appreciate that there are two blockchain networks involved; the Ethereum and Status.
The Status system seeks to provide users with complete influence over the decisions on the network for notifications, software development, and key decisions. Any person holding SNT can propose a decision on the system. Then, the nodes in the system will decide whether it should proceed through a vote.
The voting system on the Status network follows a unique model that closely mimics that of the POS (proof of stake) system. For every decision made on the network, the respective user’s Status tokens get cloned into decision tokens. The tokens held by the user to decision tokens received on the network are directly proportional, 1:1. Note that to vote on any proposals, there is no cost incurred. Being able to decide how much people pay to reach you is considered very important especially for those who are high in demand such as freelancers and celebrities.
There is no mining in the Status network. Indeed, the Status whitepaper does not mention anything about mining. If you want to earn from the system, you can participate in the network development or use the Status Tribute to Talk to set a cost for those who want to talk to you on the Status system.
What Are the Advantages of Status?
The Status network is one of the new entrants into the cryptocurrency industry. The network has received praise from every corner of the industry because it builds on the existing technologies instead of reinventing the wheel. This has allowed the developers to concentrate on the next generation features. Here are some of the key benefits of Status network.
- Status allows the user to join, own, develop and own the network
If you have a bank account, there is a tendency to feel passive. You only go there to seek services while decisions including those that directly affect you are made by other parties. It is different when it comes to Status. The network is owned by users in the system. You are free to join, own the coins, develop apps, and become part of the decision-making group.
- The cryptocurrency has managed to finally take blockchain technology to people’s phones
By operating as a node on the Ethereum system, users are able to access the decentralized applications in the network. This is like having the entire Ethereum network in one’s hand. It is a great method of advancing the blockchain technology. For example, even people with no intention of diving deeper into cryptos can still use the different applications for messaging or using various applications.
- The Status network is built on the Ethereum system
While this consideration can be risky because of dependence, it also has some great advantages. By building Status on the Ethereum network, it means that clients have access to a large pool of applications and better security. This has acted as a launch pad driving the growth of Status well ahead of others including more established networks.
- The cryptocurrency community and experts are highly optimistic that Status will grow progressively
A cryptocurrency is as good as the supporting community. If the community is small because of disinterest, that network is doomed. However, the community and cryptocurrency experts are of the view that the potential of Status is enormous. This coupled with positive publicity about the network is helping to drive the current high demand for Status coins.
- The system provides users with an opportunity to invest without worrying about third-party seizures
When you buy the native Status tokens, there is no third party that can know about it. Even if a court battle hauls itself to your doorsteps, it will be impossible to know about your investment or even freeze it.
What Are the Risks of Status?
If you are looking forward to joining the Status network, do not stop after reading through the advantages. You need to equally understand the risks associated with it and make an informed decision to join it or not. Here are the main risks to expect after joining Status.
- The danger of the looming regulations
Many administrations are feeling threatened by cryptocurrencies and, therefore, committed to passing very harsh regulations. If they make true their threats and pass harsh regulations, there is a risk of Status value and current popularity receding. It could even fade off completely.
- Status is a relatively new cryptocurrency
The Status network is one of the new projects in the cryptocurrency niche. By mid-2018, the cryptocurrency was about one year old. Indeed, most of the features were still being tested. This means that additional time will be required to ascertain the stability of the cryptocurrency.
- The threat of new cryptocurrencies entering the network
Today, the race to becoming a better cryptocurrency is on. Just like Status introduced a new concept, newer cryptocurrencies are lined up with better and more appealing inventions. When such cryptocurrencies hit the market, the appeal of Status is likely to shift downwards.
- The danger of getting attacked
Hackers have found cryptocurrencies increasingly attractive because of the expected rapid growth. Since launch, hackers have been trying to break into the Status network to siphon away users’ coins. Indeed, you can be attacked even at the wallet or exchange levels and the Status coins siphoned away.
- The price of Status has been very sluggish
Though the architecture of Status is very impressive, it is interesting to note that the price has not followed a similar trend. For example, the price only grew from $0.05 in June 2017 to $0.07 in June 2018. This is indeed sluggish when other top cryptos have been hitting very high growth rates.
- High volatility
One characteristic of cryptocurrencies such as Status is that they are not backed by assets. This means that in reality you are holding digital signatures and expecting their prices to grow continuously and deliver high ROI. It is this nature that has made them become highly volatile. Whether you are holding Status coins for speculation or making payments, be ready for sudden price swings every time something touching on crypto niche happens.
What Happens if Status Gets Lost?
One of the main risks associated with cryptocurrencies is the danger of loss. Every other day, reports of people who have lost their digital assets keeps hitting the headlines. To help keep your Status coins safe, it is important to start by understanding the nature of crypto coins and how they operate.
First, you need to appreciate that crypto assets such as Status coins are not minted or printed like standard fiat. Rather, they are digital assets that can only exist in digital format. Do not be cheated by the lovely images of Status coins you see posted on different websites. The coins can only exist in the native networks. Even when lost, they are still in the network but with a new owner.
If you lose Status coins by forgetting the private keys or damage to the wallet, it implies that they are still in the network but in a dormant state. This means that the coins can be recovered if you reinstall the right wallet or get the correct private keys.
For those who lose their Status coins through hacking or sending to the wrong address, it means that they are still actively circulating in the network. However, they have a new owner and cannot be recovered whatsoever.
Since 2009 when Satoshi Nakamoto introduced Bitcoin, it has been a hasty race for blockchain networks and cryptocurrencies. The administrations feel that cryptocurrencies are out to usurp their powers and install a new order. As decentralized and peer2peer systems, cryptocurrencies such as Status have become direct threats to many organizations such as banks. Note that because they are decentralized, they do not have central entities that are responsible for compliance and even paying taxes. Therefore, cryptocurrencies are networks, very popular systems, which are edging out tax-paying institutions such as banks. This is one of the reasons currently driving administrations to rush and craft legal frameworks for cryptocurrencies.
A closer look at other reasons why many countries feel uneasy reveals a complex correlation between fintech and governments. For about ten years, many countries have been pushing their financial systems to come-up with new solutions that can help lever the financial sector. In Hong Kong, the administration formed a Fintech Facilitation Office (FFO) that has been working with developers to come up with revolutionary developments to keep it ahead of others. Now, part of the product of this liaison is crypto networks such as Status.
In the US, the Federal Bureau of Investigations (FBI) was among the first to note the threats that come with cryptocurrencies. Years later, the EU has come out to outline the same threats. The EU Commission has expressed deep concerns that cryptocurrencies are setting on fire the systems that the union took so long to build. Some of the risks cited by the EU include price volatility, the danger of complete loss, operational risks, the risk of complete loss, manipulation, and many liability gaps.
The interesting thing about these regulations is that though countries appear very clear, they do not appear in a hurry to come-up with requisite laws. Despite this, it is important to appreciate the resolve by these countries to create the crypto laws. Indeed, most of them are at different stages of creating crypto regulations. Take a look at the next section to appreciate where different countries have reached in drawing legal frameworks.
Is Status Legal?
Yes, Status is legal in most countries because there is no jurisdiction that had passed a crypto framework by mid-2018. Note that this does not give you a platform to operate in every country. There are those that have probably seen the regulation route is too complex or lengthy and opted for shortcuts. A good example is China. China has opted for direct gag orders instead of a legal framework or buying time for a legal framework.
This is one country that is not perturbed by the fast growth of cryptocurrencies. Unlike China or United States among other nations that feel greatly threatened by cryptocurrencies, Switzerland is welcoming crypto networks. The country’s administration holds the view that cryptocurrencies are the apex of the fintech and every effort to block them will only slow the developments down but not block them.
Speaking to Financial Times in January 2018, the Swiss Financial Minister, Johann Schneider-Ammann expressed his administration’s goal of becoming a crypto nation. He indicated that they had started with the ICOs. The Economics Ministry created an ICO working group that is mandated to craft tech-neutral recommendations for the country. The group is expected to provide its recommendations by the close of 2018.
While the Swiss administration is seeing the positive side of cryptos, this is not always the case with other networks. Take a look at the next case of Venezuela.
The approach that Venezuela has taken with cryptocurrencies is a unique one. The country has a national blockchain referred as petro-blockchain. But hold on. This is not anchored on the nation’s preference for cryptographic solutions. Rather, the country is using the blockchain as a way of circumventing international sanctions.
For years, the country has suffered severe restrictions because of the oppressive regime under the leadership of President Nicolas Maduro. As a peer2peer network, the petro blockchain allows Venezuela to still link and sell its petroleum anonymously. Even those who have imposed restrictions cannot know who Venezuela is trading with.
While Venezuela was seen to have resorted to Petro blockchain as a measure of last resort, it is now emerging that it could be the first country to adopt the cryptocurrency as a legal tender. On April 2018, the Venezuela Constituent Assembly approved the presidential decree that allows the oil-backed cryptocurrency to be used as a legal tender. This approval has taken the globe with a storm and started dividing the otherwise smooth push for regulation into some sort of a snag. For example, some stakeholders are now wondering; perhaps the cryptocurrencies are not as bad as they are thought to be.
China, unlike Switzerland, has preferred to hit the crypto issue straight at the core. The administration has indicated that cryptocurrencies are direct threats to its operations and, therefore, opted for direct gag orders. The country's leadership indicated that its people faced serious problems of getting defrauded because over 90% of ICOs issued there were scams. It also pointed out that many people trading in cryptocurrencies were also evading taxes. Therefore, the administration banned ICOs, froze accounts of supporting exchanges, and banned mining.
On April 2018, the administration indicated that it was going to block even the exchanges based outside the country. This was aimed at helping to prevent cash outflows and corruption. Though the country appears to be softening on the cryptocurrencies operations, some experts have indicated that it is only buying time to come up with a clear legal framework.
When the Treasury Deputy Director, Sigal Mandelker, was in China in January 2018, the suggestion made by Chinese administration that crypto information that stole the show. The crypto community interpreted that China is intending to push for sharing crypto information to mean abolishing anonymity. If this is the case, a similar law could edge closer to the OECD Common Reporting Standard (CRS) framework.
Up to the end of 2017, Russia had indicated that it would not draw any regulation on cryptocurrencies. Indeed, the administration considered it tantamount to recognizing the crypto assets like legal tenders. However, things changed in 2018 when the ministry of finance indicated that it was impossible to tell whether those who accepted payment in cryptocurrencies were committing offenses.
By the close of January, the finance ministry and central bank released the digital financial assets draft bill. This draft bill is considered the most comprehensive crypto law in the globe today. The crypto assets under the law are considered properties. This implies that they are not legal tenders.
The bill sets out the legal framework for conducting ICOs (initial coin offering) and releasing digital tokens. Like with the standard shares and bonds, the bill seeks to protect investors by requiring comprehensive scrutiny to appropriately fix the price. Besides, only registered entities are allowed to run ICOs and issue tokens. But the draft does not stop there.
According to the draft law, miners are considered to be involved in generating properties such as Status. Therefore, they are required to also be registered entities or individuals. For the exchanges, the draft law requires them to implement comprehensive Know Your Customers (KYC) efforts to protect investors.
What the draft law signifies is sure commitment to stifling of cryptocurrencies anonymity. You must be properly known and licensed to issue cryptocurrencies, miners must be registered, and cryptocurrency exchanges handling assets such as Status have to know their traders. If this type of law is replicated in other nations, a consideration that is highly probable, the entire crypto landscape could change completely.
5) The United States
While Russia has made its first step towards coming up with the crypto regulations, the US is still unsure of the approach to take. Even after being the first jurisdiction to note the numerous threats that come with cryptocurrencies, it still appears an uphill task to come-up with local crypto guidelines. After possibly seeing it an uphill task to craft local laws, the deferral administration is now looking for a global solution.
In January 2018, the federal administration reached to countries that have a huge influence on cryptocurrencies. The Deputy Treasury Director, Sigal Mandelker visited South Korea, China, and Japan to seek a common front in crypto regulation. Speaking to the press in Tokyo, Sigal indicated that the threats that face the countries are a monster that is fast growing and risking becoming uncontrollable. The US is especially concerned about the cryptocurrencies becoming avenues for fraud and funding crime.
With the federal administration not showing signs of providing the right legal framework for cryptocurrencies, the individual states have opted to march ahead. In Arizona, the Senate Bill 1091 was passed into law allowing residents to pay their taxes in cryptocurrencies such as Status. Under the new law, when a resident pays tax using Status, the assets are converted to USD and credited into the individual’s account.
Now, other states such as Nebraska, New York, and Georgia are reported to be working on similar laws. The effect Arizona law, Russian draft Digital Financial Assets bill and Venezuela focus on petro-blockchain has made many administrations to finally accept that crypto laws can be passed and implemented.
Status and Taxes
Many administrations have expressed the fear that anonymous cryptocurrencies such as Status have created special unreachable locations that allow users to operate without paying taxes. Because it is an anonymous system, users feel that they are out of reach and, therefore, can operate without paying taxes. However, experts hold a different option.
The original reason for discovering cryptocurrencies was to help address gaps and inefficiencies of the current systems. However, they were never designed to help people evade taxes. In the United States, only a very small percent of people in cryptocurrencies pay taxes. Other countries faced by the same problem of tax avoidance as people troop to cryptocurrencies include China, the EU, and Russia. It is because of this that most countries have threatened to slap cryptocurrencies with harsh laws.
According to experts, the current cover provided by cryptocurrencies cannot last forever. When newer technologies are finally unleashed, many people could end up having chains of lawsuits for tax avoidance. But it does not have to be this way. Here are three things you can do to enjoy all the benefits of Status network without breaking the law.
- Consider all revenue from trading Status as taxable income.
- Make sure to always include the trading and revenue generated from Status (both loss and profits).
- If you accept payment in SNT, work with a professional accountant to redefine and balance the books.
Does Status Have a Consumer Protection?
No, Status does not have consumer protection. Like other cryptocurrencies, Status is a decentralized network owned and operated by users spread in the network. Decisions on the networks are done through consensus. What this implies is that people who have complaints or issues with the network do not have anyone or anywhere to turn to. This situation is made worse by the fact that Status and other cryptocurrencies are not regulated. You cannot even rush to a court of law for help. To put it differently, you are on your own when working in Status network.
At this point, one cannot help but ask the question; how can one operate securely on the network? Here are some great tips to help you operate safely on the Status system.
- Make sure to always keep the core client and your operating system updated.
- Ensure to always triple check the public address when sending value on the Status network.
- Avoiding visiting risky sites that can easily give the attackers access to your system.
- Do not share the private keys with third parties.
- Select the trading and selling platforms that have demonstrated commitment to users’ security through advanced features such as 2-factor authentication.
Illegal Activities with Status
Many criminals have demonstrated their love for cryptocurrencies especially the anonymous ones. They believe that the cover provided by the network is ample to help them evade getting caught by authorities. However, no illegal activity had been reported with Status by mid-2018.
Is Status Secure?
A cryptocurrency network is as good as its security. The development team wanted to create a system that users could rely on to communicate, send value, and invest without worrying that their assets would be stolen. Here are some of the methods to keep the network secure.
- By operating on top of the Ethereum system, Status enjoys an added layer of security.
- The development team works progressively to identify and fix gaps as well as release newer more secure versions of the network.
Is Status Anonymous?
Yes, Status is an anonymous network. The anonymity is in line with the Ethereum operational requirements targeted at enhancing the integrity of the network and users info. The main method used to keep the network secure is advanced encryption.
Has Status Ever Been Hacked?
When reports of hackers gaining access to networks and siphoning the stores native coins hit the news, the effects send shockwaves in the entire crypto industry. The community wonders whether they will fall victims in the coming days. However, the Statius development team has been very active in identifying gaps and fixing them before they can get exploited by criminals. By mid-2018, no successful hacking had been reported at Status network.
How Can I Restore Status?
If you lose Status coins, there is a possibility of successfully restoring them depending on the nature of loss. This means that you need to be prepared well before the loss strikes by securing the wallet, private keys, and the seed.
- Loss through damage to the Status wallet: You can only restore the coins by reinstalling a new wallet.
- Loss through forgetting the private keys: The lost SNT tokens can only be restored through regeneration of the private keys using the seed phrase.
- If you lost the Status tokens through hacking or sending to the wrong address, the loss is permanent.
Why Do People Trust Status?
The rising number of cryptocurrencies has made it very difficult for many people to easily pick the cryptocurrency of choice. For example, almost all the 1500 cryptocurrencies in the market by mid-2018 allows users to send value on a peer2peer basis. To know the right network to join and use, everything has shifted to winning trust. Here are the main reasons why people have a lot of trust on Status.
- The network is marketed as a better option compared to others already in the market. This narrative is easily bought by users because they do not have to wait to go back to their computers to access their accounts and DApps. They have the access right in their hand.
- The Status network is led by a highly enthusiastic tech team. Starting from the founders, Carl Bennets and Hope Jarrad, the entire team has wide experience in the blockchain sector. The community hopes the team will help to take the cryptocurrency to the next level.
- The cryptocurrency is marketed as the better option. Its unique design and ability to provide users with full control especially on communication. This means that users can optimize the amount they want to make with the network.
- The cryptocurrency has demonstrated the capacity to provide users with total security for their information and assets. Unlike Bitcoin Gold network that was hacked in the first few days of launch, Status was more than one year by mid-2018 and its security was admirable.
History of Status
The history of Status can be traced back to mid-2017 when the founders, Carl Bennets and Jarrad Hope decided to take blockchain networks to the community. They decided that the best route was using a more established network for enhanced security and efficiency. Here are the main events that have taken place during the Status history.
- The Status ICO started on June 20th, 2017 and was expected to run for weeks. However, it was completed in less than one day with a total of 99 million getting raised. A total of
- On November 2017, the Status team announced the creation Open Bounty program. This program creates a new system for open source collaboration at the developer and organization levels to facilitate faster completion of various projects.
- The Status development team also released the Status Hardware wallet. Unlike other hardware wallets such as Ledger Nano S and Trezor that requires users to connect to a computer with USB cable, the Status wallet has a built-in-NFC.
- On January 30th, 2018, Status announced the release of their Status Alpha version 0.9.13 on both Android and iOS. The new version comes with new features such as ERC-20 token support, improved developer experience, and whisper offline inboxing.
- After the ICO, Status started trading at the exchanges in July at a price of $0.05. The subsequent five months saw the token price plummet and hit $0.03. From early December, the price grew steadily hitting an all-time high of $0.6 on January 4th, 2018. Then, the price took a downward trend hitting a loss of $0.08 in April before recovering slightly in May and further slowing dipping to $0.073. It will be very interesting to see how the price will go amidst high optimism from the crypto community.
Who Created Status?
Status was created by Carl Bennet and Hope Jarrad in 2017. The two computing experts wanted to come up with something unique that could help people join and enjoy all the benefits of blockchain technology. To help them run the network, they brought in Nabil Naghdy who operates as the COO. Nabil is famed for his role at Google especially the Google Flight Products and Google Maps. Other important personalities in the development team include Viktor Tron, Bo Shen, Joe Urgo, Lous Cuende, and Owen Barnes.
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