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Senators have questions for Facebook over in-game payment policies
Recently unsealed court documents revealed that Facebook employees were aware children were running up massive tabs spending money on games. Now lawmakers have some questions for the social networking giant. Senators Ed Markey (D-Mass.) and Richard Blumenthal (D-Conn.) sent a letter to Facebook CEO Mark Zuckerberg looking for more details about how Facebook handled game payments.
Razer suspends 'Paid to Play' rewards over negative feedback
Last March, Razer put forth a way to earn points that could be redeemed for the company's peripherals like keyboards and mice. All you needed to do was to launch games via Razer's Cortex desktop software and play up to five hours of eligible games each day. Unfortunately, this "Paid to Play" initiative is now at an end, at least temporarily. Razer will suspend the program beginning on March 1, based on what the company calls negative feedback from the community.
People are mortgaging their houses to buy Bitcoin
Bitcoin is sitting at $16,674 at the time of writing, after rocketing from $1,000 to more than $19,000 in the course of this year. Those types of eye-catching numbers (and the resulting media hype) are bound to draw the interest of casual folk. But, unless you've got money to burn (like Bitcoin billionaires, and Zuck's Harvard-era nemeses, the Winklevoss twins), most analysts will tell you the same thing: steer clear of the hyper-volatile currency. (Even those dabbling in it have lost tons of cash to cyberattacks on Bitcoin wallets).
US regulator accepts bitcoin as a commodity
Virtual currencies like bitcoin just came one step closer to legitimacy in the US. As part of its first action against an unregistered bitcoin options trading outfit, the Commodity Futures Trading Commission has determined that digital currencies are commodities subject to its regulations. The move both puts cryptocurrency on the same level as conventional commodity derivatives (like futures contracts or swaps) and rejects the notion that they're 'just' securities, like stocks. This isn't a shocking move when the CFTC had already hinted that it would rule this way, but it could mean a lot if it both gets bitcoin exchanges off the ground and reduces the potential for abuse. [Image credit: Thomas Trutschel/Photothek via Getty Images]
Dorian Nakamoto is raising money to sue Newsweek
March was a busy month for Dorian Satoshi Nakamoto -- Newsweek named him as the "face behind Bitcoin," a cryptocurrency the California resident claims to have only heard about a few weeks before the article's publication. Nakamoto hired a lawyer and issued a unconditional denial of allegations. Now it seems like that lawyer is about to go to work: Nakamoto has launched a legal defense fund to help pay for an impending lawsuit against Newsweek. The fund's URL and official Twitter account are bluntly named, and to the point: "NewsweekLied."
World's first government-backed digital currency to launch in December
It doesn't yet have a name, but Ecuador's new government-backed virtual currency is coming. That's the thrust of a new report from the Associated Press, anyway -- the country's Central Bank is said to be gearing up for a launch sometime in December, though the juicy technical details and the mechanics of how citizens can get their metaphorical hands on these things are still shrouded in mystery. What does seem clear at this point is that Ecuador's current cash (in the form of US dollars) isn't going anywhere, and that people will be able to conduct transactions with each other from their mobile phones without big fees eating into them. If everything goes according to plan, this'd be the first time a national government has launched its own official digital currency, though that's not to say some cryptocurrency nuts haven't aimed to affect change on a national scale. Enthusiasts in the Czech Republic launched the CzechCrownCoin a few days ago in a bid to bolster online business in the country, and the Auroracoin folks made the virtual equivalent of $380 available to all the fine folks of Iceland... only to see its value tank over time.
New York wants Bitcoin exchanges to be heavily regulated
Popularity just isn't easy. That's something cryptocurrencies, like Bitcoin, are starting to grasp. Yes, they're now being accepted as a formal method of payment by more and more places, but some government entities still can't figure out how to treat them properly, particularly in the US. Case in point: the state of New York, which is proposing that companies exchanging virtual currency with consumers go through a regulatory process. BitLicense, a plan that's been in the works for nearly a year, would require these cryptocurrency banks to verify the identity of customers and, in some cases, ask for more information from "high-risk customers, high-volume accounts, or accounts on which a suspicious activity report has been filed." But that's not necessarily a bad thing, not for everyone anyway. "These regulations include provisions to help safeguard customer assets, protect against cyber hacking, and prevent the abuse of virtual currencies for illegal activity, such as money laundering." Benjamin M. Lawsky, superintendent of New York's Department of Financial Services, stated in a press release about to the proposal.
Some companies are already paying employees in Bitcoin, but it's complicated
Direct deposit, stock options and the traditional paycheck are all outmoded: the future of employee wages, apparently, is Bitcoin. At least that's how Bitwage, a virtual currency payroll firm, feels about it. Bitwage reached out to 150 Bitcoin-friendly companies to see how they felt about implementing a Bitcoin-based payroll; of the 38 that responded, nearly half have considered it and about ten percent (read: four companies, after the math) have already done it. It's a novel idea, but the payroll company's own survey highlights some of the problems: the virtual currency isn't recognized as legal tender in most countries, which makes it incompatible with several European wage regulations. Companies would have to deal with the cryptocoin's curious tax status, too -- though Bitwage helpfully points out that there are firms (wink wink, nudge nudge) that can help with that sort of thing.
Bitcoin's elusive founder reportedly discovered living in California (update: maybe not)
There have been many theories bandied about as to the true identity of Satoshi Nakamoto, the creator of Bitcoin. Nothing conclusive has married the name to an individual or group, but now Newsweek claims to have found the Nakamoto, a 64-year-old Japanese-American man of the same name residing in California. Allegedly living an understated life, Nakamoto's said to no longer be connected to the digital currency he's implicated in making. We know this all sounds annoyingly cut and dried (a story's often more exciting than the reality, after all), but there's still Nakamoto's name changes and classified government work, among other things, to keep things mysterious. Whether this truly is the father of Bitcoin is still up for discussion, too -- there's still been no clear admission as such -- so we'll just point you to the Newsweek piece and let you make your own mind up. Update: After an eventful day of dodging reporters and engaging in a multi-car chase through Los Angeles, Nakamoto has sat down with the Associated Press to strongly deny he has anything to do with the digital currency. Indeed, he told the AP that he's never even heard of Bitcoin until three weeks ago when his son told him a reporter called to ask questions about it. However, the Newsweek article itself quotes Nakamoto's brother as saying that "he'll never admit to starting Bitcoin" and that "he'll deny everything." All of which is to say the true identity of Bitcoin's founder remains very much unconfirmed. Update 2: Apparently the genuine Satoshi Nakamoto has just posted on to the P2P Foundation (a forum for peer to peer currency) stating that he is not Dorian Satoshi Nakamoto, the person whom Newsweek fingered as Bitcoin's founder.
Bitcoin exchanges shut down after threat from India's central bank
Bitcoin is quickly beginning to attract the attention of regulators in a number of countries. After a flat-out ban in Thailand and restrictions on banks in China, now several Indian Bitcoin exchanges have suspended operations following a warning from the Reserve Bank of India concerning digital currencies. Issued December 24th, the statement outlines the risks of a purely electronic wallet, unregulated transactions and value fluctuations. It also contains what could be considered a threat, however, stating that virtual currency users could be breaking money laundering and terrorism financing laws -- one report from the subcontinent suggests the government has carried out the first raid on a Bitcoin exchange, too. Thus, some sites have decided to close for the time-being, leaving notes on their homepages expressing the need for clear legal guidelines before trading can resume. Undoubtedly we'll see more countries take steps towards regulation, especially as the price of currencies rise. Nothing decreases something's worth like outlawing it, after all.
Amazon announces Coins, a virtual currency coming to the Kindle Fire in May
Jeff Bezos, whose fortune is probably built upon real money, has decided to invent a fake one for his customers. Amazon is launching a virtual currency, called Amazon Coins, which is designed to encourage Kindle Fire users to buy apps, games and in-app item purchases. When it launches in May, Amazon plans to give away tens of millions of dollars worth of free coins to consumers, just to get 'em hooked -- before pulling the old switcheroo and demanding users stump up their hard-earned in order to be able to buy things from Farmville.
Oregon Scientific MEEP! tablet ships for $150, gives kids a safe, exclamation-filled place to play
For all the enthusiasm Oregon Scientific put into launching (and naming) its MEEP! tablet, the company has been a bit timid about getting the kid-friendly Android device into the market -- we're just seeing it go on sale eight months after it was first shown to the world. Now that the slate is here, it may be worth the patience from parents. The 1GHz ARM Cortex-A8 chip, 512MB of RAM, 800 x 480 screen and 4GB of storage won't have the adults regretting their Kindle Fire purchases, but the MEEP! does come in a smash-resistant form with remote parental control and an allowance-based store that lets kids 'buy' apps with virtual coins. Oregon helps its case through the use of Ice Cream Sandwich, preloaded games like Angry Birds and a raft of accessories for games and music. The $150 asking price is just low enough that we can see a few families starting their youngest technophiles on a MEEP! before graduating them to bigger, badder tablets with less punctuation in the name.
MasterCard denies BitCoin card rumors, BitInstant says it's still on track
Well, BitInstant is insistent that it will launch a BitCoin debit card, but MasterCard is claiming it will not be part of the plans. After a mock up of the plastic made the rounds featuring the company's logo, the financial powerhouse felt it necessary to reach out to us, clarifying its non-involvement. "MasterCard has no relationship with BitInstant. There are issuers who allow the conversion of Bitcoins to US dollars and other currencies, delivered on prepaid cards. However, we're not aware of this particular programme from BitInstant." Of course, if you read the transcript of Charlie Shrem's chat announcing the plans, he never actually names MasterCard. The logo was likely meant as a placeholder -- one that some outlets took a little too literally. Interestingly, this doesn't actually mean that MasterCard won't be involved... just that the company isn't at this point in the process. BitInstant released its own statement, just hours after the card house contacted us, saying that it has been working with MasterCard affiliates, but had yet to submit to the financial firm directly. "The card program is moving forward and the arrangement with MasterCard will be handled in due time at the proper stage of the process by the partners who work directly with that company." So, what have we learned today? Not a whole heck of a lot actually, other than the fact that putting out a debit card is a complicated business. You'll just have to stay tuned to see how this shakes out.
Compromised account leads to massive Bitcoin sell off, EFF reconsiders use of currency
Bitcoin, for those not aware, is a completely digital currency -- one where exchanges between individuals are largely anonymous and secured through cryptography, and one that has seen its hype-meter go off the charts in recent months. That, inevitably, has had some people waiting for a fall, and it took a big one this week. While things have since bounced back, the value of the currency on the so-called Mt. Gox exchange dropped from around $17.50 to just one cent in a matter of moments during the early hours of June 20th -- a drop that's since been attributed to a compromised account. Thanks to a daily withdrawal limit, however, that apparently only resulted in $1,000 actually being stolen, and a claims process has now been set up for those affected. While not directly related to the sell off, the Electronic Frontier Foundation (or EFF) also dealt a bit of a blow to the upstart currency this week, when it announced that it would no longer be accepting Bitcoin donations. According to the organization, that's both because it doesn't "fully understand the complex legal issues involved with creating a new currency system," and because it doesn't want its acceptance of Bitcoins misconstrued as an endorsement of Bitcoin. Head on past the break for an account of the aforementioned plunge as it happened. [Thanks, Zigmar; image: Wikipedia]
GDC 2010: Ngmoco justifies the freemium model
We have a lot of questions for the company, and we'll be asking even more of them coming later this week. But first things first: we cornered Ngmoco producer Allen Ma here in their suite at GDC 2010 and asked him to try and tell us why Ngmoco is so insistent on "freemium," and how they feel about some of the adverse customer reactions to their model. Read on to hear why free-to-play, pay-to-play-more is the model that they're betting their business on.
GDC 2010: Ngmoco previews We Rule and GodFinger
We stopped by Ngmoco's suite at GDC 2010 on the afternoon of the first day of the show, and got a chance to preview two upcoming titles they're working on testing and releasing soon. Both of the games follow Ngmoco's popular (and yet much-maligned) "freemium" model, in which you download the game for free with the option to buy in-game items or currency that can change up or speed your gameplay. Still, while the model might turn some players off, the games we saw were the kinds of games Ngmoco is slowly becoming known for: polished casual experiences that bring an established genre squarely into their business model. The first game we saw was called We Rule -- it's currently "beta testing" in the Canadian App Store and will be available to users in other App Stores soon. It was described to us as "Farmville meets Age of Empires," but what we saw was much more like Farmville rather than the more combat-based RTS title. The game opens on a screen full of "realms," each one developed and grown by one of your Ngmoco Plus+ friends, and you can zoom into your own to start building it up.
