Crypto Market Sentiment Drops Again; Bitcoin Still in the Positive Zone
Crypto market sentiment went for a dive in the first week after the Bitcoin (BTC) halving event on May 11. Crypto market sentiment analysis service Omenics shows that the combined moving average 7-day market sentiment measure, sentscore, for the top 10 coins dropped from last week's 5.67 to 5.08/10 this week.
While the prices have been rising, the sentscores for all but one coin have dropped, most of them in double-digits, and even that one exception - Stellar (XLM) - saw a small increase of 0.3%. Bitcoin remains in the positive zone, though with a lower sentscore, while Ethereum (ETH) got knocked back down into the neutral zone. We find only two more coins with a score above 5, while the rest dropped into the 4-5 range. That said, none are in the negative zone yet, though Bitcoin Cash (BCH) is sitting at the verge of it.
Meanwhile, observing the situation for the top 10 coins in the last 24 hours, we found it somewhat greener. Though their combined score is just 5.07, even less than the 7-day one. Still, six coins have seen an increase in their scores, including Bitcoin and Ethereum, both of which are in the positive zone. There is, however, a coin in the negative zone as well: BCH with 3.8/10.
Sentiment change among the top 10 coins in the past week:
Interpreting the sentscore’s scale:
- 0 to 2.5: very negative
- 2 to 3.9: somewhat negative zone
- 4 to 5.9: neutral zone
- 6 to 7.49: somewhat positive zone
- 7.5 to 10: very positive
The only coin whose sentscore has increased over the course of the past week is our winner. Stellar has two high scores in the positive zone this week: 8.2/10 in news and 6.2 in technicals. Two more scores are in the neutral zone, these being 5.4 in social and 4 in buzz, while its fundamentals got the negative score of 3.5.
The losing coins for this week are those with the highest decreases in their respective sentscores: BCH with -20.5%, Binance Coin (BNB) with -18.2%, and Litecoin (LTC) with -17.9%. BCH has 5.4 in news as its highest score, followed by 4.8 in social, 4 in buzz, as well as 2.8 in technicals, and 2.7 in fundamentals. BNB's got a high sentscore of 6.5 in news, as well as 5.4 in fundamentals, but the rest of its scores are quite low: 3.8 on social and technicals each, and 3.5 in buzz. Lastly, LTC's strongest aspects are social and news, with the scores of 5.5 and 5.4, respectively, followed by 4 in fundamentals, while its weakest aspects are buzz and technicals, which got 3.9 and 2.8, respectively.
When it comes to the other 29 coins rated by Omenics, the week was rough on them too. The scores of only eight have gone up. Still, Nano (NANO) remains in the positive zone with a score of 6, sixteen have scores above 5, and Komodo (KMD) is still the only coin in the negative zone with 3.5.
Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms.
As their website explains, “Omenics aggregates trending news articles and viral social media posts into an all-in-one data platform, where you can also analyze content sentiment,” later adding, “Omenics combines the 2 sentiment indicators from news and social media with 3 additional verticals for technical analysis, coin fundamentals, and buzz, resulting in the sentscore which reports a general outlook for each coin.” For now, they are rating 39 cryptocurrencies.
Crypto market sentiment went for a dive in the first week after the Bitcoin (BTC) halving event on May 11. Crypto market sentiment analysis service Omenics shows that the combined moving average 7-day market sentiment measure, sentscore, for the top 10 coins dropped from last week's 5.67 to 5.08/10 this week.
While the prices have been rising, the sentscores for all but one coin have dropped, most of them in double-digits, and even that one exception - Stellar (XLM) - saw a small increase of 0.3%. Bitcoin remains in the positive zone, though with a lower sentscore, while Ethereum (ETH) got knocked back down into the neutral zone. We find only two more coins with a score above 5, while the rest dropped into the 4-5 range. That said, none are in the negative zone yet, though Bitcoin Cash (BCH) is sitting at the verge of it.
Meanwhile, observing the situation for the top 10 coins in the last 24 hours, we found it somewhat greener. Though their combined score is just 5.07, even less than the 7-day one. Still, six coins have seen an increase in their scores, including Bitcoin and Ethereum, both of which are in the positive zone. There is, however, a coin in the negative zone as well: BCH with 3.8/10.
Sentiment change among the top 10 coins in the past week:
Interpreting the sentscore’s scale:
- 0 to 2.5: very negative
- 2 to 3.9: somewhat negative zone
- 4 to 5.9: neutral zone
- 6 to 7.49: somewhat positive zone
- 7.5 to 10: very positive
The only coin whose sentscore has increased over the course of the past week is our winner. Stellar has two high scores in the positive zone this week: 8.2/10 in news and 6.2 in technicals. Two more scores are in the neutral zone, these being 5.4 in social and 4 in buzz, while its fundamentals got the negative score of 3.5.
The losing coins for this week are those with the highest decreases in their respective sentscores: BCH with -20.5%, Binance Coin (BNB) with -18.2%, and Litecoin (LTC) with -17.9%. BCH has 5.4 in news as its highest score, followed by 4.8 in social, 4 in buzz, as well as 2.8 in technicals, and 2.7 in fundamentals. BNB's got a high sentscore of 6.5 in news, as well as 5.4 in fundamentals, but the rest of its scores are quite low: 3.8 on social and technicals each, and 3.5 in buzz. Lastly, LTC's strongest aspects are social and news, with the scores of 5.5 and 5.4, respectively, followed by 4 in fundamentals, while its weakest aspects are buzz and technicals, which got 3.9 and 2.8, respectively.
When it comes to the other 29 coins rated by Omenics, the week was rough on them too. The scores of only eight have gone up. Still, Nano (NANO) remains in the positive zone with a score of 6, sixteen have scores above 5, and Komodo (KMD) is still the only coin in the negative zone with 3.5.
Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms.
As their website explains, “Omenics aggregates trending news articles and viral social media posts into an all-in-one data platform, where you can also analyze content sentiment,” later adding, “Omenics combines the 2 sentiment indicators from news and social media with 3 additional verticals for technical analysis, coin fundamentals, and buzz, resulting in the sentscore which reports a general outlook for each coin.” For now, they are rating 39 cryptocurrencies.
Researchers Found a Way to Catch Altcoin Pumpers and Dumpers Early
While pump and dump groups can't manipulate prices of bitcoin (BTC) or other major cryptoassets, investors in small altcoins have a way to avoid such traps, according to a new research.
“The fundamental idea is to leverage the abnormal growth of so-called market buy orders, buy orders that are used when the investor wants to buy extremely quickly, whatever the price is,” a group of the researchers from Sapienza University of Rome wrote in their latest report, called Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulation. The paper was published in May.
By looking for these patterns, along with other information about volume and price, it’s possible to detect when a pump and dump scheme starts, they added.
According to the research, this algorithm does this far quicker than any other solution presently available.
“… our real-time detector outperforms the current state of the art in a significant way, improving the expected speed of the detection from 30 minutes to 25 seconds,” the report said while adding, that an exchange can detect a pump and dump scheme better than an external observer. Moreover, “small policy enforcements against the pump and dumps can reduce drastically the amount of these market manipulations.”
The researchers were studying a period from July 2017 to January 2019. They identified eight pump and dump groups, with the biggest ones being Big Pump Signal, Trading Crypto Guide, and Crypto Coin B – all focused on major exchange Binance. According to the report, these groups were all able to generate an average volume in the millions of dollars, with Big Pump Signal being by far the most impactful with over USD 7 million in average volume for each operation.
Meanwhile, a few smaller groups operating on Bittrex, Cryptopia, and YoBit on average generated pump volumes ranging from a few hundred USD to nearly half a million USD for each pump.
Researchers Found a Way to Catch Altcoin Pumpers and Dumpers Early 102
July 2017 - January 2019. Source: Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulation
According to the study, most pump-and-dump groups were managed by a small group of leaders or “admins,” and had members organized into a hierarchy. Most of the time, members higher up in the hierarchy will be able to benefit by receiving a notice of the upcoming pump shortly before the other members, thus potentially getting in early while the price is still low.
“The advantage in terms of time of being at a higher level is usually between 0.5 and 1 second with respect to the next level, and the maximum advantage is in the interval between 3 and 8 seconds,” the report said. It added that the way to climb in the hierarchy usually involves bringing new members into the group.
However, it seems that these groups now operate on a smaller scale. The aforementioned Big Pump Signal group now has less than 27,000 members. Their latest post, published on March 21, stated that, at the time, “the market was not ready for a pump”.
“However, the current situation changed that a lot. Since a lot of people are adviced to stay at home, people are watching the markets. This means that pumping in this time is good. If you guys want a pump (free-for-all) let us know,” they said.
Therefore, small altcoin traders should watch for “the abnormal growth” of market buy orders.
“A more careful investor would use limit buy orders, orders to buy a security at no more than a specific price,” the researchers said.
While pump and dump groups can't manipulate prices of bitcoin (BTC) or other major cryptoassets, investors in small altcoins have a way to avoid such traps, according to a new research.
“The fundamental idea is to leverage the abnormal growth of so-called market buy orders, buy orders that are used when the investor wants to buy extremely quickly, whatever the price is,” a group of the researchers from Sapienza University of Rome wrote in their latest report, called Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulation. The paper was published in May.
By looking for these patterns, along with other information about volume and price, it’s possible to detect when a pump and dump scheme starts, they added.
According to the research, this algorithm does this far quicker than any other solution presently available.
“… our real-time detector outperforms the current state of the art in a significant way, improving the expected speed of the detection from 30 minutes to 25 seconds,” the report said while adding, that an exchange can detect a pump and dump scheme better than an external observer. Moreover, “small policy enforcements against the pump and dumps can reduce drastically the amount of these market manipulations.”
The researchers were studying a period from July 2017 to January 2019. They identified eight pump and dump groups, with the biggest ones being Big Pump Signal, Trading Crypto Guide, and Crypto Coin B – all focused on major exchange Binance. According to the report, these groups were all able to generate an average volume in the millions of dollars, with Big Pump Signal being by far the most impactful with over USD 7 million in average volume for each operation.
Meanwhile, a few smaller groups operating on Bittrex, Cryptopia, and YoBit on average generated pump volumes ranging from a few hundred USD to nearly half a million USD for each pump.
Researchers Found a Way to Catch Altcoin Pumpers and Dumpers Early 102
July 2017 - January 2019. Source: Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulation
According to the study, most pump-and-dump groups were managed by a small group of leaders or “admins,” and had members organized into a hierarchy. Most of the time, members higher up in the hierarchy will be able to benefit by receiving a notice of the upcoming pump shortly before the other members, thus potentially getting in early while the price is still low.
“The advantage in terms of time of being at a higher level is usually between 0.5 and 1 second with respect to the next level, and the maximum advantage is in the interval between 3 and 8 seconds,” the report said. It added that the way to climb in the hierarchy usually involves bringing new members into the group.
However, it seems that these groups now operate on a smaller scale. The aforementioned Big Pump Signal group now has less than 27,000 members. Their latest post, published on March 21, stated that, at the time, “the market was not ready for a pump”.
“However, the current situation changed that a lot. Since a lot of people are adviced to stay at home, people are watching the markets. This means that pumping in this time is good. If you guys want a pump (free-for-all) let us know,” they said.
Therefore, small altcoin traders should watch for “the abnormal growth” of market buy orders.
“A more careful investor would use limit buy orders, orders to buy a security at no more than a specific price,” the researchers said.
Can a Digital Dollar Save the US? JPMorgan Says...It’s Complicated
“No country has more to lose” than the United States as central bank digital currencies (CBDCs) begin to roll out, claims US-based investment banking giant JPMorgan – which suggests that a “modest” digital fiat investment could potentially help safeguard dollar dominance for years to come.
Per Bloomberg, JPMorgan claims that the United States is currently in a very advantageous position, with the world using the dollar as its global reserve currency. But as digital currency progress continues to intensify, particularly in China and Europe, but also in South Korea and other areas, the greenback’s dominance could be challenged.
The media outlet says that Josh Younger, JPMorgan’s head of United States interest-rate derivatives strategy and Michael Feroli, its chief American economist, co-wrote a report claiming,
“There is no country with more to lose from the disruptive potential of digital currency than the United States. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages.”
However, rather than delivering a fast knock-out blow, JPMorgan says that dollar dominance will likely be undermined in more nuanced ways if and when CBDCs do roll out elsewhere in the world.
Particularly at threat, said the analysts, were “more fragile” aspects of the dollar dependence model, with trade settlements and the SWIFT payment system looking vulnerable.
The EU, which could look to issue a digital euro if French-led plans come to fruition, could be looking to distance itself from American economic dominance, with the analysts stating that SWIFT’s 2018 suspension of access for a number of Iran-based banks may have violated EU law.
SWIFT’s position would look increasingly precarious if digital currencies became the norm in major economies, meaning it would become harder for the United States to enforce economic sanctions on companies, individuals and states.
The report reflected opinions previously expressed by many central banks, with its authors writing,
“For high-income countries and the United States, in particular, digital currency is an exercise in geopolitical risk management.”
The US Federal Reserve has admitted that it is looking into the possibility of digital dollar issuance but has been relatively non-committal in the matter thus far – in spite of calls from some politicians who want an American CBDC in place to fight any forthcoming coronavirus pandemic-induced financial slump.
The authors offered reasoning, writing,
“Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy.”
The JPMorgan analysts concluded that there was a “reasonable case to be made” for central banks to introduce digital fiats, but CBDCs were unlikely to have the transformative impact that some people have previously forecasted.
“No country has more to lose” than the United States as central bank digital currencies (CBDCs) begin to roll out, claims US-based investment banking giant JPMorgan – which suggests that a “modest” digital fiat investment could potentially help safeguard dollar dominance for years to come.
Per Bloomberg, JPMorgan claims that the United States is currently in a very advantageous position, with the world using the dollar as its global reserve currency. But as digital currency progress continues to intensify, particularly in China and Europe, but also in South Korea and other areas, the greenback’s dominance could be challenged.
The media outlet says that Josh Younger, JPMorgan’s head of United States interest-rate derivatives strategy and Michael Feroli, its chief American economist, co-wrote a report claiming,
“There is no country with more to lose from the disruptive potential of digital currency than the United States. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages.”
However, rather than delivering a fast knock-out blow, JPMorgan says that dollar dominance will likely be undermined in more nuanced ways if and when CBDCs do roll out elsewhere in the world.
Particularly at threat, said the analysts, were “more fragile” aspects of the dollar dependence model, with trade settlements and the SWIFT payment system looking vulnerable.
The EU, which could look to issue a digital euro if French-led plans come to fruition, could be looking to distance itself from American economic dominance, with the analysts stating that SWIFT’s 2018 suspension of access for a number of Iran-based banks may have violated EU law.
SWIFT’s position would look increasingly precarious if digital currencies became the norm in major economies, meaning it would become harder for the United States to enforce economic sanctions on companies, individuals and states.
The report reflected opinions previously expressed by many central banks, with its authors writing,
“For high-income countries and the United States, in particular, digital currency is an exercise in geopolitical risk management.”
The US Federal Reserve has admitted that it is looking into the possibility of digital dollar issuance but has been relatively non-committal in the matter thus far – in spite of calls from some politicians who want an American CBDC in place to fight any forthcoming coronavirus pandemic-induced financial slump.
The authors offered reasoning, writing,
“Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy.”
The JPMorgan analysts concluded that there was a “reasonable case to be made” for central banks to introduce digital fiats, but CBDCs were unlikely to have the transformative impact that some people have previously forecasted.
Sberbank to Roll out 5,000 Apple&Google Pay-compatible Blockchain ATMs
Major banks in Russia are looking to do away with plastic card-powered personal finance – and are turning to blockchain to boost contactless transactions in the wake of the coronavirus pandemic. The banks are being led by blockchain-keen Sberbank, which has just bought around 5,000 contactless ATMs that will be compatible with Apple Pay, Google Pay, Samsung Pay and Huawei Pay.
Per Izvestia, Sberbank has forked out USD 108.5 million on the new devices, which will also be compatible with Mir Pay, a contactless payment platform launched by the Central Bank of Russia in May 2017.
The devices, says the media outlet, will be capable of storing at least 14.5 thousand banknotes each, and will be fitted with pattern recognition software, in addition to blockchain technology and will be theft and vandal-proofed. Rather than operating these ATMs using touchscreen interfaces, customers will be able to operate the machines via their smartphones.
Sberbank is keen to cut down on plastic card dependence during the pandemic but says that the new technology will also help reduce costs and attract new customers.
Izvestia adds that its sources have told the media outlet that other major Russian banks are also looking to battle COVID-19-related services using remote and contact-free payments and settlement services.
The bank did not explain exactly what role blockchain technology will play in the new machines.
Sberbank – once the most crypto-keen bank in the nation – has thrown its lot in with blockchain technology in recent months.
Last year it unveiled a cross-border money transfer app that it believes could help “do away with the need” for cryptocurrencies.
The same media outlet quotes a banking expert as claiming that Russian banks are already looking to add new functionality to new ATMs, which could soon allow users to make contact-free loan applications from machines, as well as stock market trades and place e-commerce orders.
While NFC-powered contactless ATM technology is now widespread in many nations, Russian banks appear to be looking beyond this, with Sberbank rival VTB announcing that it intends to launch a cash withdrawal service that also makes use of smartphones, allowing Apple Pay and Google Pay-powered withdrawals.
Major banks in Russia are looking to do away with plastic card-powered personal finance – and are turning to blockchain to boost contactless transactions in the wake of the coronavirus pandemic. The banks are being led by blockchain-keen Sberbank, which has just bought around 5,000 contactless ATMs that will be compatible with Apple Pay, Google Pay, Samsung Pay and Huawei Pay.
Per Izvestia, Sberbank has forked out USD 108.5 million on the new devices, which will also be compatible with Mir Pay, a contactless payment platform launched by the Central Bank of Russia in May 2017.
The devices, says the media outlet, will be capable of storing at least 14.5 thousand banknotes each, and will be fitted with pattern recognition software, in addition to blockchain technology and will be theft and vandal-proofed. Rather than operating these ATMs using touchscreen interfaces, customers will be able to operate the machines via their smartphones.
Sberbank is keen to cut down on plastic card dependence during the pandemic but says that the new technology will also help reduce costs and attract new customers.
Izvestia adds that its sources have told the media outlet that other major Russian banks are also looking to battle COVID-19-related services using remote and contact-free payments and settlement services.
The bank did not explain exactly what role blockchain technology will play in the new machines.
Sberbank – once the most crypto-keen bank in the nation – has thrown its lot in with blockchain technology in recent months.
Last year it unveiled a cross-border money transfer app that it believes could help “do away with the need” for cryptocurrencies.
The same media outlet quotes a banking expert as claiming that Russian banks are already looking to add new functionality to new ATMs, which could soon allow users to make contact-free loan applications from machines, as well as stock market trades and place e-commerce orders.
While NFC-powered contactless ATM technology is now widespread in many nations, Russian banks appear to be looking beyond this, with Sberbank rival VTB announcing that it intends to launch a cash withdrawal service that also makes use of smartphones, allowing Apple Pay and Google Pay-powered withdrawals.
Major Bitcoin Players Lure Large Investors With New Offerings
From exclusive trading services to investment in Bitcoin (BTC) mining farms, major crypto players are expanding their product list in order to attract more large investors.
Today, in an attempt to attract more institutional traders, major crypto exchange Coinbase said agreed to acquire another major player in the crypto industry, Tagomi, a New York-based crypto brokerage. "The acquisition will bolster our offerings for advanced traders and the most sophisticated crypto investors," Coinbase said, adding that they've seen "a swell in demand from institutional investors over the past year."
Also today, major crypto custody company BitGo announced the launch of BitGo Prime, to offer institutional trading services, which come with "increased liquidity, fast execution and competitive aggregate pricing." The company said in their press release that BitGo Prime clients are able to trade directly and anonymously from their cold storage. The assets are held with qualified custodian BitGo Trust and are insured by BitGo’s coverage for USD 100 million.
BitGo claims it is the first digital asset financial services company to offer "a deeply integrated solution with lending, trading and custody." It's also fully integrated with BitGo Portfolio and Tax. The product is initially available to investors with fully funded accounts, and BitGo Prime plans to offer a line of credit through which investors with non-fully funded accounts will be able to trade as well.
“Our challenge was to build an innovative, sustainable trading and lending business that bridges the complex world of technology with the demands of the traditional financial markets,” Nick Carmi, CEO of BitGo Prime, was quoted as saying.
Meanwhile, believing that there weren't many available investment products in digital asset infrastructure for institutional investors and family offices, full-service blockchain technology group Bitfury has launched its institutional investor program, thus offering an alternative investment vehicle for gaining exposure to BTC. Their announcement and website say that the product is designed to help these two groups diversify their portfolios into digital asset infrastructure by enabling them to invest in Bitfury’s data centers, primarily used to mine Bitcoin, situated across North America and Europe, through investment vehicles that include direct investment and indirect engagements, through funds, private equity, etc.
According to their website, the "unique partnership models assumes we don’t make profit on the initial transaction – instead, Bitfury shares the risk, similar to a funds partnership model." The company manages all operations, such as site sourcing, procurement of equipment, deployment of facilities, and data center operations and maintenance. Investors can track the financial progress and profitability online.
There have been quite a few discussions - or rather a single, very long one - over the years about how to bring more of these high-net-worth individuals and firms into the world of crypto. In 2019, industry players talked about big institutions' interest in blockchain, specifically as it relates to cross-border payments and the tracking of transactions and orders. Later, they told that, for crypto to grow, both institutional and retail investments are indispensable, and that in 2020 we'll likely see institutional investors focusing mostly on Bitcoin, while retail investors will be more open to other digital assets but won't be as active in driving market activity.
In May, Nick Prince, Financial Strategy Analyst at major crypto exchange Coinbase, wrote that family offices are the most likely to invest in crypto, but banks/insurance companies are the least likely. Prince said that institutional investors are not homogenous and while some have already invested in cryptoassets, others may never do so. We've also discussed institutional investors in the context of seven main post-halving BTC narratives.
From exclusive trading services to investment in Bitcoin (BTC) mining farms, major crypto players are expanding their product list in order to attract more large investors.
Today, in an attempt to attract more institutional traders, major crypto exchange Coinbase said agreed to acquire another major player in the crypto industry, Tagomi, a New York-based crypto brokerage. "The acquisition will bolster our offerings for advanced traders and the most sophisticated crypto investors," Coinbase said, adding that they've seen "a swell in demand from institutional investors over the past year."
Also today, major crypto custody company BitGo announced the launch of BitGo Prime, to offer institutional trading services, which come with "increased liquidity, fast execution and competitive aggregate pricing." The company said in their press release that BitGo Prime clients are able to trade directly and anonymously from their cold storage. The assets are held with qualified custodian BitGo Trust and are insured by BitGo’s coverage for USD 100 million.
BitGo claims it is the first digital asset financial services company to offer "a deeply integrated solution with lending, trading and custody." It's also fully integrated with BitGo Portfolio and Tax. The product is initially available to investors with fully funded accounts, and BitGo Prime plans to offer a line of credit through which investors with non-fully funded accounts will be able to trade as well.
“Our challenge was to build an innovative, sustainable trading and lending business that bridges the complex world of technology with the demands of the traditional financial markets,” Nick Carmi, CEO of BitGo Prime, was quoted as saying.
Meanwhile, believing that there weren't many available investment products in digital asset infrastructure for institutional investors and family offices, full-service blockchain technology group Bitfury has launched its institutional investor program, thus offering an alternative investment vehicle for gaining exposure to BTC. Their announcement and website say that the product is designed to help these two groups diversify their portfolios into digital asset infrastructure by enabling them to invest in Bitfury’s data centers, primarily used to mine Bitcoin, situated across North America and Europe, through investment vehicles that include direct investment and indirect engagements, through funds, private equity, etc.
According to their website, the "unique partnership models assumes we don’t make profit on the initial transaction – instead, Bitfury shares the risk, similar to a funds partnership model." The company manages all operations, such as site sourcing, procurement of equipment, deployment of facilities, and data center operations and maintenance. Investors can track the financial progress and profitability online.
There have been quite a few discussions - or rather a single, very long one - over the years about how to bring more of these high-net-worth individuals and firms into the world of crypto. In 2019, industry players talked about big institutions' interest in blockchain, specifically as it relates to cross-border payments and the tracking of transactions and orders. Later, they told that, for crypto to grow, both institutional and retail investments are indispensable, and that in 2020 we'll likely see institutional investors focusing mostly on Bitcoin, while retail investors will be more open to other digital assets but won't be as active in driving market activity.
In May, Nick Prince, Financial Strategy Analyst at major crypto exchange Coinbase, wrote that family offices are the most likely to invest in crypto, but banks/insurance companies are the least likely. Prince said that institutional investors are not homogenous and while some have already invested in cryptoassets, others may never do so. We've also discussed institutional investors in the context of seven main post-halving BTC narratives.
Japanese Crypto Exchange SBI VC Trade Offers New Customers Free XRP
Japan’s newest crypto players are getting increasingly aggressive in their marketing efforts – with financial giant SBI now offering all new crypto customers handouts of the XRP token.
SBI operates the SBI VC Trade crypto exchange, and per an official tweet, anybody opening an account between June 1 and September 30 will receive XRP 50 (currently worth around USD 10).
SBI is one of Ripple’s closest partners, and the Japanese company uses Ripple’s MoneyTap solution in its own e-pay platform. Earlier this month, the company announced it wanted to roll out a solution that makes use of MoneyTap in hundreds of Japanese ATMs.
Its CEO Yoshitaka Kitao is a member of the Ripple board, and the company has made multiple XRP payouts to shareholders of its Morningstar subsidiary.
SBI VC Trade also says it has launched an e-KYC (Know-Your-Customer) authentication platform that allows new customers to conduct the entire registration process using their smartphones.
The move comes hot on the heels of another crypto giveaway from a major new player on the Japanese crypto scene. As previously reported, e-commerce giant Rakuten has embarked on a month-long Bitcoin Pizza Day-themed promotion. Its Rakuten Delivery subsidiary is offering pizza delivery customers bitcoin (BTC) handouts of up to around USD 9 – providing they have or open accounts on the business group’s Rakuten Wallet exchange.
Japanese business experts have opined that new crypto regulations, which came into force on May 1, have given the industry more legitimacy – and emboldened marketers, particularly at larger, cash-rich players.
Japan’s newest crypto players are getting increasingly aggressive in their marketing efforts – with financial giant SBI now offering all new crypto customers handouts of the XRP token.
SBI operates the SBI VC Trade crypto exchange, and per an official tweet, anybody opening an account between June 1 and September 30 will receive XRP 50 (currently worth around USD 10).
SBI is one of Ripple’s closest partners, and the Japanese company uses Ripple’s MoneyTap solution in its own e-pay platform. Earlier this month, the company announced it wanted to roll out a solution that makes use of MoneyTap in hundreds of Japanese ATMs.
Its CEO Yoshitaka Kitao is a member of the Ripple board, and the company has made multiple XRP payouts to shareholders of its Morningstar subsidiary.
SBI VC Trade also says it has launched an e-KYC (Know-Your-Customer) authentication platform that allows new customers to conduct the entire registration process using their smartphones.
The move comes hot on the heels of another crypto giveaway from a major new player on the Japanese crypto scene. As previously reported, e-commerce giant Rakuten has embarked on a month-long Bitcoin Pizza Day-themed promotion. Its Rakuten Delivery subsidiary is offering pizza delivery customers bitcoin (BTC) handouts of up to around USD 9 – providing they have or open accounts on the business group’s Rakuten Wallet exchange.
Japanese business experts have opined that new crypto regulations, which came into force on May 1, have given the industry more legitimacy – and emboldened marketers, particularly at larger, cash-rich players.
Russia Sending Mixed Signals: Is China-style Bitcoin Crackdown In Works?
Last week, a leading Russian parliamentarian claimed that Duma financial policymakers were not behind any calls for a ban of cryptocurrencies, such as Bitcoin (BTC). This week starts with worrying news as legal experts and crypto industry leaders have taken aim at a draft bill set to be put before Russian parliamentarians with some warning that it could spell the end for the country’s cryptocurrency industry.
The draft bill for the long-awaited “On Digital Assets” bill has finally been published on the State Duma’s official website after a wait of around 23 months.
But per Kommersant, the bill’s provisions would seek to “disconnect” Russia from the world of crypto, with a total ban on mining on of the most worrying provisions – considering how many miners have set up shop in the country.
Despite issuing words of reassurance last week, Duma finance committee chief Anatoly Aksakov told Kommersant that Russian regulators were now taking a “tough stance” on the “restriction” of cryptocurrencies “in the Russian legal sphere.”
Aksakov stated that although the bill looks to force Russian companies to close down or relocate overseas, Russian “citizens who want to deal with cryptocurrency” may do so “on foreign platforms.”
The media outlet quotes Mikhail Uspensky, a partner at the Taxology law firm, as stating that the bill seeks to “completely block the legal sale of major global cryptocurrencies in Russia.”
Uspensky added that the list of what citizens and companies are and are not allowed to do with crypto has been “poorly developed.”
For instance, the lawyer states, the bill would allow declared cryptocurrency to be inherited, but would not allow donations to a close relative or awarded in divorce settlements.
In an open letter, the Russian Association of Cryptocurrencies and Blockchain (RACIB) wrote to the Ministry of Economy and the State Duma, saying,
“The government’s message to all entrepreneurs whose activities are somehow related to cryptocurrencies is unambiguous: immediately withdraw your business from the country and relocate to other jurisdictions.”
Only time will tell if there will be another twist in the long-running tale of Russian crypto regulations – a matter that has been in flux since 2017, with the first reading of “On Digital Currencies” passing the Duma over two years ago.
Last week, a leading Russian parliamentarian claimed that Duma financial policymakers were not behind any calls for a ban of cryptocurrencies, such as Bitcoin (BTC). This week starts with worrying news as legal experts and crypto industry leaders have taken aim at a draft bill set to be put before Russian parliamentarians with some warning that it could spell the end for the country’s cryptocurrency industry.
The draft bill for the long-awaited “On Digital Assets” bill has finally been published on the State Duma’s official website after a wait of around 23 months.
But per Kommersant, the bill’s provisions would seek to “disconnect” Russia from the world of crypto, with a total ban on mining on of the most worrying provisions – considering how many miners have set up shop in the country.
Despite issuing words of reassurance last week, Duma finance committee chief Anatoly Aksakov told Kommersant that Russian regulators were now taking a “tough stance” on the “restriction” of cryptocurrencies “in the Russian legal sphere.”
Aksakov stated that although the bill looks to force Russian companies to close down or relocate overseas, Russian “citizens who want to deal with cryptocurrency” may do so “on foreign platforms.”
The media outlet quotes Mikhail Uspensky, a partner at the Taxology law firm, as stating that the bill seeks to “completely block the legal sale of major global cryptocurrencies in Russia.”
Uspensky added that the list of what citizens and companies are and are not allowed to do with crypto has been “poorly developed.”
For instance, the lawyer states, the bill would allow declared cryptocurrency to be inherited, but would not allow donations to a close relative or awarded in divorce settlements.
In an open letter, the Russian Association of Cryptocurrencies and Blockchain (RACIB) wrote to the Ministry of Economy and the State Duma, saying,
“The government’s message to all entrepreneurs whose activities are somehow related to cryptocurrencies is unambiguous: immediately withdraw your business from the country and relocate to other jurisdictions.”
Only time will tell if there will be another twist in the long-running tale of Russian crypto regulations – a matter that has been in flux since 2017, with the first reading of “On Digital Currencies” passing the Duma over two years ago.
Four Crypto Exchanges Rake In 90% of Bitcoin Trading Volume
While bitcoin (BTC) is as a decentralized asset, trading in and out of the biggest cryptoasset remains a relatively centralized process, according to a new report from crypto data provider Coin Metrics.
Although bitcoin is traded against a range of fiat currencies, stablecoins, and other cryptoassets across both centralized, decentralized, and peer-to-peer markets, major centralized exchanges still control an overwhelming share of the market.
More specifically, these exchanges include the major players Coinbase, Bitstamp, Bitfinex, and Kraken.
“Distribution of US dollar quoted spot market volume follows a power law where roughly 90 percent of the volume is concentrated in the top four exchanges in our sample,” the report said, adding that institutions interested in getting into bitcoin trading should do so through multiple exchanges “to access the full spectrum of trading activity.”
Further, the report also found that although bitcoin’s total trading volume is still “minuscule” compared to for example the US stock market, bond market, or the global foreign exchange (forex) market, it is growing fast.
If the historical growth in bitcoin trading volume can be maintained over the next few years, bitcoin’s spot trading volume could exceed the entire US stock market in less than 4 years, and in less than 5 years it would overtake the large US bond market, the report pointed out.
On the issue of bitcoin’s relatively small trading volume, Coin Metrics also said that bitcoin at its current stage is more “comparable in size to a large capitalization stock rather than a distinct asset class.” As such, the report noted, institutions that are considering bitcoin may find that the investment is only suited to make up “a portion of the already small allocation to alternative assets,” rather than having a separate allocation for bitcoin only.
While bitcoin (BTC) is as a decentralized asset, trading in and out of the biggest cryptoasset remains a relatively centralized process, according to a new report from crypto data provider Coin Metrics.
Although bitcoin is traded against a range of fiat currencies, stablecoins, and other cryptoassets across both centralized, decentralized, and peer-to-peer markets, major centralized exchanges still control an overwhelming share of the market.
More specifically, these exchanges include the major players Coinbase, Bitstamp, Bitfinex, and Kraken.
“Distribution of US dollar quoted spot market volume follows a power law where roughly 90 percent of the volume is concentrated in the top four exchanges in our sample,” the report said, adding that institutions interested in getting into bitcoin trading should do so through multiple exchanges “to access the full spectrum of trading activity.”
Further, the report also found that although bitcoin’s total trading volume is still “minuscule” compared to for example the US stock market, bond market, or the global foreign exchange (forex) market, it is growing fast.
If the historical growth in bitcoin trading volume can be maintained over the next few years, bitcoin’s spot trading volume could exceed the entire US stock market in less than 4 years, and in less than 5 years it would overtake the large US bond market, the report pointed out.
On the issue of bitcoin’s relatively small trading volume, Coin Metrics also said that bitcoin at its current stage is more “comparable in size to a large capitalization stock rather than a distinct asset class.” As such, the report noted, institutions that are considering bitcoin may find that the investment is only suited to make up “a portion of the already small allocation to alternative assets,” rather than having a separate allocation for bitcoin only.
Russian Companies Upbeat about Metals, Oil & Gas Tokenization Chances
Russian companies remain optimistic about their plans to tokenize the mining and extraction of oil, gas and other natural resources, including precious metals – despite lingering concerns about legislation and regulatory hurdles.
As previously reported, Russia may be sliding toward a crypto crackdown – with a new draft bill proposing to force crypto ventures out of the country.
Kolya, who asked Cryptonews.com not to reveal his surname, works at a major oil Russian exporting enterprise with interests in Europe and Asia. He told us,
“It would be wrong to think that big oil and gas companies think their chances of launching tokens are over because of the new draft bill. We’ve seen the bill change a lot in the past, and it’s quite possible that we can convince the naysayers that stablecoins are just stablecoins – while cryptocurrencies are a whole different ballgame.”
Meanwhile, per RBC, Sergei Gorkov, the Director-General of Rosgeology – a major mining and engineering firm for the energy and metals sectors – stated,
“In Russia, there are currently active 3,000 licenses for mining, including palladium and platinum. These are assets that have strong market liquidity. We have just launched a project with crypto exchange Huobi that will see us create a stablecoin platform based on diamond and gold mining. This will help Russian exploration efforts and will play a significant role in developing the economy.”
RBC also claims Russian firms would be prepared to launch their tokens via overseas subsidiaries in countries with more lenient approaches to crypto-related projects, with Switzerland, Estonia and Gibraltar all named.
Russian experts agree that tokenization would help drive the economy, which has suffered from falling oil prices. Last month, Russian oil-exporting firms reported that they were receiving as little as USD 1 per barrel.
What is more, the tokenization drive has the support of Russia’s richest man, Norilsk Nickel boss Vladimir Potanin.
As reported earlier this year, Norilsk Nickel has already received the go-ahead from the Central Bank – the most vehement opponent of everything crypto-related in Russia – for a forthcoming digital tokens trading platform, with coins pegged to metal mining efforts.
RBC notes that Potanin and fellow industry chiefs have petitioned the State Duma with tokenization proposals, and are hopeful that parliamentarians will listen to their cause in the upcoming autumn session.
Russian companies remain optimistic about their plans to tokenize the mining and extraction of oil, gas and other natural resources, including precious metals – despite lingering concerns about legislation and regulatory hurdles.
As previously reported, Russia may be sliding toward a crypto crackdown – with a new draft bill proposing to force crypto ventures out of the country.
Kolya, who asked Cryptonews.com not to reveal his surname, works at a major oil Russian exporting enterprise with interests in Europe and Asia. He told us,
“It would be wrong to think that big oil and gas companies think their chances of launching tokens are over because of the new draft bill. We’ve seen the bill change a lot in the past, and it’s quite possible that we can convince the naysayers that stablecoins are just stablecoins – while cryptocurrencies are a whole different ballgame.”
Meanwhile, per RBC, Sergei Gorkov, the Director-General of Rosgeology – a major mining and engineering firm for the energy and metals sectors – stated,
“In Russia, there are currently active 3,000 licenses for mining, including palladium and platinum. These are assets that have strong market liquidity. We have just launched a project with crypto exchange Huobi that will see us create a stablecoin platform based on diamond and gold mining. This will help Russian exploration efforts and will play a significant role in developing the economy.”
RBC also claims Russian firms would be prepared to launch their tokens via overseas subsidiaries in countries with more lenient approaches to crypto-related projects, with Switzerland, Estonia and Gibraltar all named.
Russian experts agree that tokenization would help drive the economy, which has suffered from falling oil prices. Last month, Russian oil-exporting firms reported that they were receiving as little as USD 1 per barrel.
What is more, the tokenization drive has the support of Russia’s richest man, Norilsk Nickel boss Vladimir Potanin.
As reported earlier this year, Norilsk Nickel has already received the go-ahead from the Central Bank – the most vehement opponent of everything crypto-related in Russia – for a forthcoming digital tokens trading platform, with coins pegged to metal mining efforts.
RBC notes that Potanin and fellow industry chiefs have petitioned the State Duma with tokenization proposals, and are hopeful that parliamentarians will listen to their cause in the upcoming autumn session.
EOS Developer Block.one Prepares Voice For July
With existing social media platforms increasingly coming under fire for alleged censorship, decentralization proponents may now be one step closer to another blockchain-based alternative that says it will “take social back from big tech.”
Block.one, the company behind EOS, is now targeting an initial launch of their new social media platform Voice on July 4, the Independence Day in the United States. However, users will still need to go through registration in order to publish and engage with content, and this will remain by request only until August 15, Voice CEO Salah Zalatimo tweeted this weekend.
The new launch date marks a change from a previously planned launch sometime this fall, and – according to the company’s CEO – happens because they “simply can’t wait any longer” given the big tech companies’ increasing control over user data and content on their platforms.
The decentralized social media platform, which launched its beta version back in February, aims to be an alternative to existing social media networks by putting an emphasis on having only real human users on its platform, thus hoping to avoid spam, fake users, and misleading content. Further, the platform will feature its own utility token that can be earned as rewards for creating posts, or be spent to boost the visibility of posts.
Block.one has invested heavily in the new social network. As reported, the company last year paid USD 30 million for the Voice.com domain. Earlier this year, the company also announced an additional investment of USD 150 million in capital to kickstart Voice.
The new platform was originally designed to operate on the EOS public blockchain, but later changed this to the purpose-made EOSIO blockchain.
At pixel time (07:20 UTC), EOS, ranked 9th by market capitalization, trades at USD 2.8 and is down by 0.6% in a day, trimming its weekly gains to 3.4%. The is price is almost unchanted in a month and down by 56% in a year.
With existing social media platforms increasingly coming under fire for alleged censorship, decentralization proponents may now be one step closer to another blockchain-based alternative that says it will “take social back from big tech.”
Block.one, the company behind EOS, is now targeting an initial launch of their new social media platform Voice on July 4, the Independence Day in the United States. However, users will still need to go through registration in order to publish and engage with content, and this will remain by request only until August 15, Voice CEO Salah Zalatimo tweeted this weekend.
The new launch date marks a change from a previously planned launch sometime this fall, and – according to the company’s CEO – happens because they “simply can’t wait any longer” given the big tech companies’ increasing control over user data and content on their platforms.
The decentralized social media platform, which launched its beta version back in February, aims to be an alternative to existing social media networks by putting an emphasis on having only real human users on its platform, thus hoping to avoid spam, fake users, and misleading content. Further, the platform will feature its own utility token that can be earned as rewards for creating posts, or be spent to boost the visibility of posts.
Block.one has invested heavily in the new social network. As reported, the company last year paid USD 30 million for the Voice.com domain. Earlier this year, the company also announced an additional investment of USD 150 million in capital to kickstart Voice.
The new platform was originally designed to operate on the EOS public blockchain, but later changed this to the purpose-made EOSIO blockchain.
At pixel time (07:20 UTC), EOS, ranked 9th by market capitalization, trades at USD 2.8 and is down by 0.6% in a day, trimming its weekly gains to 3.4%. The is price is almost unchanted in a month and down by 56% in a year.
East Asia Digital Token Initiative Inspired by Facebook’s Libra Plan
Policymakers in China have suggested creating a joint Japan-China-South Korea-Hong Kong digital currency that would function in a manner not unlike Facebook’s original plan for the Libra project.
Per Seoul Daily, 10 members of the National People's Congress – the biggest and most powerful policy-making organ in China, have suggested creating a token that would be pegged to a basket of four currencies, namely the Chinese yuan, the Japanese yen, the South Korean won and the Hong Kong dollar. The token would help the nations do away with dollar-based cash deals, something Beijing is believed to extremely keen on.
The proposal’s chief architect appears to be Neil Shen, founder of Sequoia Capital and travel agency Ctrip. Henry Tang Ying-yen, the Chief Secretary of Hong Kong between 2007 and 2011 and the Financial Secretary from 2003 to 2007, was named as another major proponent.
The same news outlet claims that Japanese sources believe that the policymakers suggested that each country stump up a portion of the “basket” in their own currency, with Mainland China asked to cough up 60% of the total basket holdings in RMB. Japan would be asked to stump up around 20% in yen.
Political tensions in the region could prove to be a massive hurdle to any such venture, with trade suffering between all four parties in recent years, due mainly to geopolitical and localized disputes.
However, trade officials have been keen for the nations to put their differences aside for the sake of business – particularly in the wake of the coronavirus pandemic, which has already hit the economies of East Asia hard.
Seoul Daily quotes a Nikkei report that states China was spurred into action by the Libra white paper, initially seeing it as a de facto digital dollar. This has led Beijing to step up its own digital yuan project – now in pilot testing – and could well see it at least consider the idea of creating an East Asian trading token.
As previously reported, other international trading partner groups, including the BRICS nations (Brazil, Russia, India, China and South Africa) have explored the notion of creating cryptocurrencies or digital tokens specifically to facilitate international trade
Policymakers in China have suggested creating a joint Japan-China-South Korea-Hong Kong digital currency that would function in a manner not unlike Facebook’s original plan for the Libra project.
Per Seoul Daily, 10 members of the National People's Congress – the biggest and most powerful policy-making organ in China, have suggested creating a token that would be pegged to a basket of four currencies, namely the Chinese yuan, the Japanese yen, the South Korean won and the Hong Kong dollar. The token would help the nations do away with dollar-based cash deals, something Beijing is believed to extremely keen on.
The proposal’s chief architect appears to be Neil Shen, founder of Sequoia Capital and travel agency Ctrip. Henry Tang Ying-yen, the Chief Secretary of Hong Kong between 2007 and 2011 and the Financial Secretary from 2003 to 2007, was named as another major proponent.
The same news outlet claims that Japanese sources believe that the policymakers suggested that each country stump up a portion of the “basket” in their own currency, with Mainland China asked to cough up 60% of the total basket holdings in RMB. Japan would be asked to stump up around 20% in yen.
Political tensions in the region could prove to be a massive hurdle to any such venture, with trade suffering between all four parties in recent years, due mainly to geopolitical and localized disputes.
However, trade officials have been keen for the nations to put their differences aside for the sake of business – particularly in the wake of the coronavirus pandemic, which has already hit the economies of East Asia hard.
Seoul Daily quotes a Nikkei report that states China was spurred into action by the Libra white paper, initially seeing it as a de facto digital dollar. This has led Beijing to step up its own digital yuan project – now in pilot testing – and could well see it at least consider the idea of creating an East Asian trading token.
As previously reported, other international trading partner groups, including the BRICS nations (Brazil, Russia, India, China and South Africa) have explored the notion of creating cryptocurrencies or digital tokens specifically to facilitate international trade
Bitcoin Users Could've Saved Half a Billion USD in Fees - Report
Network fees must be paid, but what if you don’t have to pay as much? Bitcoin (BTC) users could've saved around half a billion USD in network fees had there been a full SegWit and batching adoption, according to Bitcoin startup Veriphi.
Per Veriphi’s latest report, almost half a million blocks of transactions were “scrutinized” to calculate just how much BTC and megabytes would’ve been saved thanks to these technologies.
As a short reminder, SegWit (Segregated Witness) is an optional protocol upgrade to blockchain networks, first activated in 2017, and it basically means “to separate transaction signatures.” It’s useful for cost, speed, and scalability. As for the scaling technique called batching, it signifies having more than three outputs in a transaction, so to make a payment to two different parties at once.
The report explains that in seven years, from January 2012 to March 2020, BTC 205,941 were paid in fees to miners – that could have been batched. Per the current BTC price, this amounts to over USD 2 billion.
Over BTC 20,620 could have been saved by Bitcoin users if they all were using Transaction Batching, the report claims. Instead of the BTC 205,941, users would've paid BTC 185,321 in fees, which is savings of 10%. That (not)saved amount of BTC through batching is currently worth USD 202 million.
It's not the end of the staggering amounts that could've stayed in users wallets. Per the report, if all users utilized SegWit, more than BTC 35,068 could have been saved. Fees would have amounted to BTC 56,142, which is down from BTC 91,210 paid commonly in fees – and that makes it 38% in savings. That (not)saved amount of BTC through SegWit is currently worth USD 344 million.
Together, the saved number was nearly half a billion at the time of writing the report, but per today's prices, it amounts to more than that.
"The advantages brought through optimized fee management techniques such as SegWit and Batching are mostly impressive and apparent during high transactional activity periods,“ writes Veriphy. „A large percentage of the possible savings would have been achieved in only a few months over the spawn of 8 years and 3 months analyzed."
The report advises BTC market actors, such as exchanges, to consider implementing these technologies. "In anticipation of future price appreciation and higher transactional activity, Bitcoin users have to acknowledge that bitcoin transaction fees will continue to rise and prepare consequently."
Room to save fees
SegWit usage today is around 50% and payment batching has been adopted by many exchanges, says the report.
It cites the report by Coin Metrics co-founder Nic Carter and analyst Hasu, per which, from November 2017 to May 2018, batching accounted for c. 12% of transactions, 40% of outputs, and 30%-60% of volume transacted on the Network. Veriphy found that, at the end of 2018, it dropped to 10%, then went up to 17% in March 2019, and even 30% in August 2019. It's back to 10%-12% since October 2019.
By March 2018, the highest SegWit's adoption's been was 20%. It gradually went up to a range between 30%-45%, and stayed there for more than a year. In September 2019, it jumped to 50%-60% range until March 2020, when it dropped to 40%-50%.
At the moment of writing (13:09), BTC is trading at USD 9,734. It's almost unchanged in the past 24 hours and in the past week.
Network fees must be paid, but what if you don’t have to pay as much? Bitcoin (BTC) users could've saved around half a billion USD in network fees had there been a full SegWit and batching adoption, according to Bitcoin startup Veriphi.
Per Veriphi’s latest report, almost half a million blocks of transactions were “scrutinized” to calculate just how much BTC and megabytes would’ve been saved thanks to these technologies.
As a short reminder, SegWit (Segregated Witness) is an optional protocol upgrade to blockchain networks, first activated in 2017, and it basically means “to separate transaction signatures.” It’s useful for cost, speed, and scalability. As for the scaling technique called batching, it signifies having more than three outputs in a transaction, so to make a payment to two different parties at once.
The report explains that in seven years, from January 2012 to March 2020, BTC 205,941 were paid in fees to miners – that could have been batched. Per the current BTC price, this amounts to over USD 2 billion.
Over BTC 20,620 could have been saved by Bitcoin users if they all were using Transaction Batching, the report claims. Instead of the BTC 205,941, users would've paid BTC 185,321 in fees, which is savings of 10%. That (not)saved amount of BTC through batching is currently worth USD 202 million.
It's not the end of the staggering amounts that could've stayed in users wallets. Per the report, if all users utilized SegWit, more than BTC 35,068 could have been saved. Fees would have amounted to BTC 56,142, which is down from BTC 91,210 paid commonly in fees – and that makes it 38% in savings. That (not)saved amount of BTC through SegWit is currently worth USD 344 million.
Together, the saved number was nearly half a billion at the time of writing the report, but per today's prices, it amounts to more than that.
"The advantages brought through optimized fee management techniques such as SegWit and Batching are mostly impressive and apparent during high transactional activity periods,“ writes Veriphy. „A large percentage of the possible savings would have been achieved in only a few months over the spawn of 8 years and 3 months analyzed."
The report advises BTC market actors, such as exchanges, to consider implementing these technologies. "In anticipation of future price appreciation and higher transactional activity, Bitcoin users have to acknowledge that bitcoin transaction fees will continue to rise and prepare consequently."
Room to save fees
SegWit usage today is around 50% and payment batching has been adopted by many exchanges, says the report.
It cites the report by Coin Metrics co-founder Nic Carter and analyst Hasu, per which, from November 2017 to May 2018, batching accounted for c. 12% of transactions, 40% of outputs, and 30%-60% of volume transacted on the Network. Veriphy found that, at the end of 2018, it dropped to 10%, then went up to 17% in March 2019, and even 30% in August 2019. It's back to 10%-12% since October 2019.
By March 2018, the highest SegWit's adoption's been was 20%. It gradually went up to a range between 30%-45%, and stayed there for more than a year. In September 2019, it jumped to 50%-60% range until March 2020, when it dropped to 40%-50%.
At the moment of writing (13:09), BTC is trading at USD 9,734. It's almost unchanged in the past 24 hours and in the past week.
Sender of USD 5.3 Million ETH Transactions Reportedly Revealed
It seems that the sender of last week's USD 5.28 million Ethereum (ETH) transactions has been revealed.
Blockchain analytics and security firm PeckShield claims to have identified the sender - a South Korean peer-to-peer crypto exchange Good Cycle. Furthermore, this small exchange "appears to be a Ponzi Scheme project", claims the firm.
Good Cycle confirms that there have been repeated attacks on the exchange.
Last week we reported on the two transactions with massive fees: first, someone sent ETH 0.55, at the time worth USD 133.93, but paid a whopping ETH 10,669, or USD 2.6 million, in transaction fees. A day later, ETH 350 (USD 86,404) was sent paying the same fee - equivalent to USD 2.64 million.
The transactions went through SparkPool and Ethermine mining pools, which already announced that they will distribute the fee since they hadn't heard from the sender. Several hours ago, two transactions were sent - one to each pool, from the same address the above-mentioned transactions were sent, with a message: "I am the sender."
It's not yet known what the two mining pools plan to do about this. We contacted them both and will update should they reply. Also, it remains unclear who hacked and allegedly "blackmailed" the exchange.
Meanwhile, Bitfly announced that Ethermine will not interfere in the payout of large transaction fees any longer and will stick with their policy to always distribute the full block rewards. Today they announced that a new safety feature has been introduced to prevent accidental high-fee transactions.
It seems that the sender of last week's USD 5.28 million Ethereum (ETH) transactions has been revealed.
Blockchain analytics and security firm PeckShield claims to have identified the sender - a South Korean peer-to-peer crypto exchange Good Cycle. Furthermore, this small exchange "appears to be a Ponzi Scheme project", claims the firm.
Good Cycle confirms that there have been repeated attacks on the exchange.
Last week we reported on the two transactions with massive fees: first, someone sent ETH 0.55, at the time worth USD 133.93, but paid a whopping ETH 10,669, or USD 2.6 million, in transaction fees. A day later, ETH 350 (USD 86,404) was sent paying the same fee - equivalent to USD 2.64 million.
The transactions went through SparkPool and Ethermine mining pools, which already announced that they will distribute the fee since they hadn't heard from the sender. Several hours ago, two transactions were sent - one to each pool, from the same address the above-mentioned transactions were sent, with a message: "I am the sender."
It's not yet known what the two mining pools plan to do about this. We contacted them both and will update should they reply. Also, it remains unclear who hacked and allegedly "blackmailed" the exchange.
Meanwhile, Bitfly announced that Ethermine will not interfere in the payout of large transaction fees any longer and will stick with their policy to always distribute the full block rewards. Today they announced that a new safety feature has been introduced to prevent accidental high-fee transactions.
Hedera Brings HBAR to 5M BRD Wallet Users, Announces Hackathon Winners
Hedera Hashgraph, a public distributed ledger platform and a blockchain alternative for corporations, has announced a partnership deal with the BRD consumer wallet, which it says will bring its HBAR token to 5 million wallet users.
The company also announced the winners of a recent virtual hackathon.
Hedera and BRD have entered a strategic relationship, per a press release from the wallet makers.
The move has made the cryptocurrency accessible "to nearly 5 million wallet users globally across 170 countries," BRD said. It also "enables Hedera to take advantage of the ongoing growth of the consumer market," says the company.
BRD claims it has added over 678,000 users in the United States since March 2020.
Mance Harmon, the CEO of Hedera, claimed that the partnership would bring HBAR to millions of people and spur enterprise adoption.
Furthermore, BRD's blockchain data integration platform Blockset, which powers the wallet and comes with a suite of tools for building blockchain applications, will now support Hedera network data. This will enable read and write functionality, and allow companies to read data and transact on-chain through Blockset's API (application programming interface).
BRD's CEO Adam Traidman said that the goal of the partnership was to "accelerate enterprise adoption of decentralized technologies." He added that integrating Hedera into Blockset "not only showcases Hedera's technology to enterprises around the world, but also enhances the value proposition of the Blockset product more broadly."
Hedera had more news to share: Yesterday the firm announced the winners of the Hedera20 Virtual Hackathon.
The winners are:
1st place: OXILES; an event listener that bridges Hedera with other blockchains and backend microservices.
2nd place: Public Pest Network; decentralized network enabling researchers, farmers, and the public to submit, view, and analyze pest data.
3rd place: 3IEIO Digital Workforce Identity; a self-sovereign identity system that allows for each individual to "own" the cultural/ behavioral assets they give each day to their job.
Other categories: Ocean Plastic Collection & Recycling, Hedera API Portal, HumanKind, Hashgraph World, Nonselective Reporting, Finalpay, and CoFund20.
The hackathon ran from May 1 to June 12, and included a number of challenges related to digital identity, security, charities, healthcare, climate change and more, a press release explained.
With over 800 developers building new decentralized applications (dApps) on the Hedera network, the aim was for projects to "take advantage of some or all of the following Hdera Consensus Service (HCS) benefits: fair ordering, proof of action, and audit logs."
Hedera Hashgraph, a public distributed ledger platform and a blockchain alternative for corporations, has announced a partnership deal with the BRD consumer wallet, which it says will bring its HBAR token to 5 million wallet users.
The company also announced the winners of a recent virtual hackathon.
Hedera and BRD have entered a strategic relationship, per a press release from the wallet makers.
The move has made the cryptocurrency accessible "to nearly 5 million wallet users globally across 170 countries," BRD said. It also "enables Hedera to take advantage of the ongoing growth of the consumer market," says the company.
BRD claims it has added over 678,000 users in the United States since March 2020.
Mance Harmon, the CEO of Hedera, claimed that the partnership would bring HBAR to millions of people and spur enterprise adoption.
Furthermore, BRD's blockchain data integration platform Blockset, which powers the wallet and comes with a suite of tools for building blockchain applications, will now support Hedera network data. This will enable read and write functionality, and allow companies to read data and transact on-chain through Blockset's API (application programming interface).
BRD's CEO Adam Traidman said that the goal of the partnership was to "accelerate enterprise adoption of decentralized technologies." He added that integrating Hedera into Blockset "not only showcases Hedera's technology to enterprises around the world, but also enhances the value proposition of the Blockset product more broadly."
Hedera had more news to share: Yesterday the firm announced the winners of the Hedera20 Virtual Hackathon.
The winners are:
1st place: OXILES; an event listener that bridges Hedera with other blockchains and backend microservices.
2nd place: Public Pest Network; decentralized network enabling researchers, farmers, and the public to submit, view, and analyze pest data.
3rd place: 3IEIO Digital Workforce Identity; a self-sovereign identity system that allows for each individual to "own" the cultural/ behavioral assets they give each day to their job.
Other categories: Ocean Plastic Collection & Recycling, Hedera API Portal, HumanKind, Hashgraph World, Nonselective Reporting, Finalpay, and CoFund20.
The hackathon ran from May 1 to June 12, and included a number of challenges related to digital identity, security, charities, healthcare, climate change and more, a press release explained.
With over 800 developers building new decentralized applications (dApps) on the Hedera network, the aim was for projects to "take advantage of some or all of the following Hdera Consensus Service (HCS) benefits: fair ordering, proof of action, and audit logs."
Cardano and Coinbase Enter Custody Partnership
Cardano has entered a custody agreement with major crypto exchange Coinbase, stating that near the end of the year, holders will be able to store their ADA in Coinbase’s cold storage, as well as stake their funds.
Charles Hoskinson, CEO of Cardano's developer IOHK, has announced the news today, during the second day of the Cardano Virtual Summit: Shelley Addition.
According to the agreement, ADA holders will gain the option to store their assets in Coinbase Custody’s cold storage, but without losing the ability to delegate their stake, the emailed press release said. The feature will be available sometimes in the fourth quarter of 2020.
The press release also said that Coinbase Custody the first to offer staking while also keeping assets stored in cold wallets.
The custody agreement enables IOHK "to offer the same secure storage solutions that can be found in traditional finance to ADA holders, without sacrificing what makes Proof of Stake blockchains special - being able to participate in the network," Hoskinson said.
He added that IOHK hopes that "Coinbase can be the custodian of preference for many institutional holders of ADA and other people who have large amounts" of it.
The companies found that these types of partnerships are "essential" on the path towards widespread adoption of crypto, given that they provide a solution for secure fund management, but one that also adheres to regulatory requirements. "The ability to successfully operate within a regulatory framework is essential for the long-term survival of cryptocurrencies," said Sam McIngvale, Head of Product at Coinbase Custody.
"This will hopefully alleviate concerns from regulators about the security of cryptocurrency which have previously hampered it from being accepted into mainstream finance," said the announcement.
At pixel time (14:40 UTC), the 8th coin by market capitalization, ADA, is trading at USD 0.098. It appreciated almost 3% in a day and 23% in a week.
Cardano has entered a custody agreement with major crypto exchange Coinbase, stating that near the end of the year, holders will be able to store their ADA in Coinbase’s cold storage, as well as stake their funds.
Charles Hoskinson, CEO of Cardano's developer IOHK, has announced the news today, during the second day of the Cardano Virtual Summit: Shelley Addition.
According to the agreement, ADA holders will gain the option to store their assets in Coinbase Custody’s cold storage, but without losing the ability to delegate their stake, the emailed press release said. The feature will be available sometimes in the fourth quarter of 2020.
The press release also said that Coinbase Custody the first to offer staking while also keeping assets stored in cold wallets.
The custody agreement enables IOHK "to offer the same secure storage solutions that can be found in traditional finance to ADA holders, without sacrificing what makes Proof of Stake blockchains special - being able to participate in the network," Hoskinson said.
He added that IOHK hopes that "Coinbase can be the custodian of preference for many institutional holders of ADA and other people who have large amounts" of it.
The companies found that these types of partnerships are "essential" on the path towards widespread adoption of crypto, given that they provide a solution for secure fund management, but one that also adheres to regulatory requirements. "The ability to successfully operate within a regulatory framework is essential for the long-term survival of cryptocurrencies," said Sam McIngvale, Head of Product at Coinbase Custody.
"This will hopefully alleviate concerns from regulators about the security of cryptocurrency which have previously hampered it from being accepted into mainstream finance," said the announcement.
At pixel time (14:40 UTC), the 8th coin by market capitalization, ADA, is trading at USD 0.098. It appreciated almost 3% in a day and 23% in a week.
China Adds New Blockchain Post to List of ‘Officially Recognized Jobs’
Chinese authorities have placed another blockchain-related post on the nation’s official list of jobs.
Per the People’s Daily, the official newspaper of the Chinese Communist Party, the Ministry of Human Resources and Social Security, the State Council body responsible for national labor policies, has added nine new official jobs to its list of officially recognized jobs. Among their number is “blockchain app technician/operator.”
The decision follows on from another announcement earlier this year from the same ministry, which added “blockchain developer” to its list.
The ministry’s move, says the newspaper, comes as part of Beijing’s greater blockchain push. The media outlet wrote,
“The demand for blockchain engineering technicians and app operators will increase in China.”
And the report’s author added that blockchain technology “has broad application prospects.”
State-run companies are reportedly scooping up blockchain talent in China, where startups are already complaining they are having trouble finding enough specialists to fill vacancies. Earlier this year.
Chinese tech giants like Tencent and Alibaba, the operators of two e-pay platforms that have collectively cornered some 15% of the nation’s payments markets, have growing blockchain departments, while several major international crypto exchanges – founded in China prior to the 2017 crypto crackdown – have recently returned to the country in recent months to ostensibly operate large-scale blockchain operations.
Chinese authorities have placed another blockchain-related post on the nation’s official list of jobs.
Per the People’s Daily, the official newspaper of the Chinese Communist Party, the Ministry of Human Resources and Social Security, the State Council body responsible for national labor policies, has added nine new official jobs to its list of officially recognized jobs. Among their number is “blockchain app technician/operator.”
The decision follows on from another announcement earlier this year from the same ministry, which added “blockchain developer” to its list.
The ministry’s move, says the newspaper, comes as part of Beijing’s greater blockchain push. The media outlet wrote,
“The demand for blockchain engineering technicians and app operators will increase in China.”
And the report’s author added that blockchain technology “has broad application prospects.”
State-run companies are reportedly scooping up blockchain talent in China, where startups are already complaining they are having trouble finding enough specialists to fill vacancies. Earlier this year.
Chinese tech giants like Tencent and Alibaba, the operators of two e-pay platforms that have collectively cornered some 15% of the nation’s payments markets, have growing blockchain departments, while several major international crypto exchanges – founded in China prior to the 2017 crypto crackdown – have recently returned to the country in recent months to ostensibly operate large-scale blockchain operations.
Bitcoin Balances on Exchanges Reach New Low
Bitcoin (BTC) balances held on exchanges continued down, reaching a 13-month low today. Meanwhile, a blockchain analyst suggested investors should use caution in how they interpret on-chain data.
The new low in exchange balances was reported by blockchain analytics firm Glassnode, which said on Twitter today that the 13-month low of about 2.62 million BTC held on exchanges is a further step down from June 30, which saw 2.63 million BTC held on exchanges.
As previously reported, exchange balances have been in decline for the better part of 2020. Meanwhile, several theories have been discussed as the reason for the move away from exchanges, with some insiders pointing to over-the-counter (OTC) deals, while others have said an increase in the bitcoin whale population shows that large holders increasingly prefer to take full control of their own coins.
And although 2020 has seen a decline in exchange balances of bitcoin, the downtrend is still a relatively new phenomena for bitcoin, which can be seen when zooming out on the longer-term chart back to 2017. Since then, exchange balances have pretty much been in a continuous uptrend, with relatively minor pullbacks along the way.
Meanwhile, Rafael Schultze-Kraft, Chief Technology Officer (CTO) of Glassnode, suggested in a recent podcast with Stephan Livera that on-chain data should not necessarily be taken at face value, as it is “very difficult” to estimate things like how many people are “hodling” bitcoin.
“This is a question that has been very difficult to answer because what the approximation has been until now is simply to look at addresses,” Schultze-Kraft said, adding that the problem with that is that one user can control more than one address.
“And there’s also addresses that hold funds of multiple users. Think about an exchange address for instance,” the Glassnode CTO explained.
Further, Schultze-Kraft also supported the idea that the reduction in exchange balances is driven by whales taking their coins off exchanges, saying that the growth in whale numbers is “essentially inversely related to the amount of BTC that is being withdrawn from exchanges.”
However, the CTO also warned that the explanation for this is not necessarily as simple as just to say that whales are learning how to do self-custody, saying it’s probably “too easy” to reduce it to that.
“… at least to some extent that withdrawal of funds from exchanges is potentially now a setup of real confidence that you know they will be holding their coins for a large amount of time, you know, in anticipation potentially of a bull market,” he said.
At pixel time (12:00 PM UTC), BTC trades at USD 9,207 and is down by 2% in a day. The price is up by almost 1% in a week, trimming its weekly losses to less than 6%. BTC dropped by 20% in a year.
Bitcoin (BTC) balances held on exchanges continued down, reaching a 13-month low today. Meanwhile, a blockchain analyst suggested investors should use caution in how they interpret on-chain data.
The new low in exchange balances was reported by blockchain analytics firm Glassnode, which said on Twitter today that the 13-month low of about 2.62 million BTC held on exchanges is a further step down from June 30, which saw 2.63 million BTC held on exchanges.
As previously reported, exchange balances have been in decline for the better part of 2020. Meanwhile, several theories have been discussed as the reason for the move away from exchanges, with some insiders pointing to over-the-counter (OTC) deals, while others have said an increase in the bitcoin whale population shows that large holders increasingly prefer to take full control of their own coins.
And although 2020 has seen a decline in exchange balances of bitcoin, the downtrend is still a relatively new phenomena for bitcoin, which can be seen when zooming out on the longer-term chart back to 2017. Since then, exchange balances have pretty much been in a continuous uptrend, with relatively minor pullbacks along the way.
Meanwhile, Rafael Schultze-Kraft, Chief Technology Officer (CTO) of Glassnode, suggested in a recent podcast with Stephan Livera that on-chain data should not necessarily be taken at face value, as it is “very difficult” to estimate things like how many people are “hodling” bitcoin.
“This is a question that has been very difficult to answer because what the approximation has been until now is simply to look at addresses,” Schultze-Kraft said, adding that the problem with that is that one user can control more than one address.
“And there’s also addresses that hold funds of multiple users. Think about an exchange address for instance,” the Glassnode CTO explained.
Further, Schultze-Kraft also supported the idea that the reduction in exchange balances is driven by whales taking their coins off exchanges, saying that the growth in whale numbers is “essentially inversely related to the amount of BTC that is being withdrawn from exchanges.”
However, the CTO also warned that the explanation for this is not necessarily as simple as just to say that whales are learning how to do self-custody, saying it’s probably “too easy” to reduce it to that.
“… at least to some extent that withdrawal of funds from exchanges is potentially now a setup of real confidence that you know they will be holding their coins for a large amount of time, you know, in anticipation potentially of a bull market,” he said.
At pixel time (12:00 PM UTC), BTC trades at USD 9,207 and is down by 2% in a day. The price is up by almost 1% in a week, trimming its weekly losses to less than 6%. BTC dropped by 20% in a year.
South Korean Central Bank Launches CBDC Legal Advisory Unit
South Korea is once again intensifying the pace of its central bank digital currency (CBDC) progress – with a central bank-run team now investigating legal obstacles that might stand in the way of digital won issuance.
Bitter political and financial rival Japan last week took a step closer to launching a digital yen. The country’s central bank launched operations to examine ways of using a CBDC offline. Tokyo is keen to ensure that a digital token could offer universal access and meet a range of stringent tech specifications. Earlier this month, the Japanese central bank also launched a feasibility pilot.
But per a report from Fn News, the Bank of Korea (BOK) is determined to “speed up” the pace of its own CBDC operations. Industry insiders have told that Seoul is determined not to fall behind Japan and China, whose own digital yuan project is reportedly on the verge of a real-world pilot with a private ride-share firm.
As previously reported, the BOK could launch a pilot as early as December this year after completing a technical survey. And, on Monday, the bank has announced the launch of a new legal advisory unit, which it says will work with the BOK until May next year.
The unit will review legal issues related to potential CBDC issuance, and could recommend possible legal amendments, with a progress report due “in the second half of 2020.”
The group will comprise a number of the BOK’s own legal experts, as well as six non-BOK affiliated legal experts, including leading academics. Cryptocurrency- and blockchain-specific law experts from Seoul’s Yonsei University and Sungkyunkwan University were named as members.
Fn News claims that the BOK has changed its interest in CBDC issuance from “passive” to “active,” although the BOK is still non-committal on CBDC issuance. Instead, the central bank insists that it is conducting its research to prepare for issuance “if a need to do so arises.”
South Korea is once again intensifying the pace of its central bank digital currency (CBDC) progress – with a central bank-run team now investigating legal obstacles that might stand in the way of digital won issuance.
Bitter political and financial rival Japan last week took a step closer to launching a digital yen. The country’s central bank launched operations to examine ways of using a CBDC offline. Tokyo is keen to ensure that a digital token could offer universal access and meet a range of stringent tech specifications. Earlier this month, the Japanese central bank also launched a feasibility pilot.
But per a report from Fn News, the Bank of Korea (BOK) is determined to “speed up” the pace of its own CBDC operations. Industry insiders have told that Seoul is determined not to fall behind Japan and China, whose own digital yuan project is reportedly on the verge of a real-world pilot with a private ride-share firm.
As previously reported, the BOK could launch a pilot as early as December this year after completing a technical survey. And, on Monday, the bank has announced the launch of a new legal advisory unit, which it says will work with the BOK until May next year.
The unit will review legal issues related to potential CBDC issuance, and could recommend possible legal amendments, with a progress report due “in the second half of 2020.”
The group will comprise a number of the BOK’s own legal experts, as well as six non-BOK affiliated legal experts, including leading academics. Cryptocurrency- and blockchain-specific law experts from Seoul’s Yonsei University and Sungkyunkwan University were named as members.
Fn News claims that the BOK has changed its interest in CBDC issuance from “passive” to “active,” although the BOK is still non-committal on CBDC issuance. Instead, the central bank insists that it is conducting its research to prepare for issuance “if a need to do so arises.”
Bitcoin Pioneer LN Markets Raising Capital, Building 'Liquidation Killer'
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
BitMEX on Lightning
The platform was founded by a group of ex-traders who left banking for Bitcoin in 2015. After several years of consulting and developing blockchain solutions for financial institutions, Côme Jean Jarry, Victor Afanassieff, and Romain Rouphaël founded the company in 2019 to build an entirely new trading experience with instant delivery versus payments - made possible by the Lightning Network. The team is located in Paris, France.
“When the Lightning Network came, we had the idea to build a type of BitMEX on the Lightning Network, where you could instantly send funds when you enter a position and get them back directly into your wallet when you close it out,” Rouphaël said.
Now, as part of its Alpha testing phase, the web-based trading platform offers CFD (contract for difference) trading on the currency pair BTC/USD with up to 50x leverage. But the platform’s two standout features are authentication via LNURL, and instant trading and settlement.
By signing a transaction using a Bitcoin Lightning wallet, users can create an account and start trading. There is no need for KYC (know your customer) or even an email address.
Depositing, withdrawing, and trading is instant thanks to the Lightning Network.
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
BitMEX on Lightning
The platform was founded by a group of ex-traders who left banking for Bitcoin in 2015. After several years of consulting and developing blockchain solutions for financial institutions, Côme Jean Jarry, Victor Afanassieff, and Romain Rouphaël founded the company in 2019 to build an entirely new trading experience with instant delivery versus payments - made possible by the Lightning Network. The team is located in Paris, France.
“When the Lightning Network came, we had the idea to build a type of BitMEX on the Lightning Network, where you could instantly send funds when you enter a position and get them back directly into your wallet when you close it out,” Rouphaël said.
Now, as part of its Alpha testing phase, the web-based trading platform offers CFD (contract for difference) trading on the currency pair BTC/USD with up to 50x leverage. But the platform’s two standout features are authentication via LNURL, and instant trading and settlement.
By signing a transaction using a Bitcoin Lightning wallet, users can create an account and start trading. There is no need for KYC (know your customer) or even an email address.
Depositing, withdrawing, and trading is instant thanks to the Lightning Network.
Chinese Blockchain-powered Cross-border Trade Pilot Handles USD 4.4bn
Operators of a Chinese blockchain-powered cross-border trade pilot platform are set to expand the platform’s scope – with multi-million dollar trade deals now being conducted in a key testbed area.
Per Haiwainet, the central government is testing the efficacy of the network in the Guangdong-Hong Kong-Macao Greater Bay Area, also known as the Pearl River Delta. Official figures show that the platform has handled USD 4.4bn worth of transactions so far this year.
The platform reportedly allows companies to apply for bank financing faster and more effectively than using conventional financing systems. It also allows customs officials to work on cross-border trade deals at a reportedly much faster rate, boosting the speed of international exports.
However, the government has now given its blessing to the operators’ plans to expand the scope of the pilot, allowing companies to make applications to creditors and prove the worth of their business proposals on the same platform – and make authenticity verification checks.
One company in the Nansha District section of the testbed in Guangzhou recently reported that it had used blockchain-powered authenticity verification solutions to conduct a cross-border trade for a company based in the district. The company used the platform to conduct an international deal in a foreign currency and was worth USD 5.52m.
The same media outlet added that “almost 400” companies in nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area have made use of the platform for payments – and said that the initiative has been “broadly welcomed” by market players in the testbed area.
Operators of a Chinese blockchain-powered cross-border trade pilot platform are set to expand the platform’s scope – with multi-million dollar trade deals now being conducted in a key testbed area.
Per Haiwainet, the central government is testing the efficacy of the network in the Guangdong-Hong Kong-Macao Greater Bay Area, also known as the Pearl River Delta. Official figures show that the platform has handled USD 4.4bn worth of transactions so far this year.
The platform reportedly allows companies to apply for bank financing faster and more effectively than using conventional financing systems. It also allows customs officials to work on cross-border trade deals at a reportedly much faster rate, boosting the speed of international exports.
However, the government has now given its blessing to the operators’ plans to expand the scope of the pilot, allowing companies to make applications to creditors and prove the worth of their business proposals on the same platform – and make authenticity verification checks.
One company in the Nansha District section of the testbed in Guangzhou recently reported that it had used blockchain-powered authenticity verification solutions to conduct a cross-border trade for a company based in the district. The company used the platform to conduct an international deal in a foreign currency and was worth USD 5.52m.
The same media outlet added that “almost 400” companies in nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area have made use of the platform for payments – and said that the initiative has been “broadly welcomed” by market players in the testbed area.
Ant Group Explains What its 100m per Day ‘Digital Assets’ Uploads Are
Alibaba affiliate Ant Group has revealed details about the nature of the 100 million+ “digital assets” it said are uploaded onto its AntChain blockchain network “every day.”
As reported, the Ant Group earlier this week announced that it has launched AntChain, calling it a “new technology brand for the Ant Group’s blockchain-based solutions.”
The company claimed that it “now has the largest productivity blockchain platform in China, with the ability to process and support one billion user accounts and one billion transactions every day.”
Cryptonews.com asked the Ant Group to clarify what these digital assets were, and the Chinese company responded, explaining via email,
“Digital assets are things like transaction records, shipping information, invoices, copyright certificates and so on. They are typically uploaded by companies using AntChain.”
The company added that in the case of shipping-related firms using the platform, multiple “digital assets” can be uploaded to use the platform to enable them to conduct faster and more effective transactions.
The firm stated that shipping companies, logistic sub-contractors as well as last-mile delivery vendors can all upload their records onto the AntChain network, so that each participant can know the status of shipping assignment without having to verify through traditional means, such as making a phone call or sending a fax.
The company also explained that its solution is finding a home in the world of trade and supply chain financing.
In the case of a supplier who “receives a receipt after sending a batch of components to a client factory,” the company noted that “usually the factory won't pay immediately but will pay in a few months’ time.”
Instead, the company stated,
“The supplier can then take the receipt to a bank and ask for a loan. However, traditionally it's very complicated and costly for the bank to verify if the receipt is real or not, but if the supplier, factory and the bank all use AntChain then the moment the factory issues the receipt (which represents a certain amount of account receivable), the bank will know instantaneously that it’s real and can then automatically assign a credit line based on the receipt for the supplier.”
The process of creating digital assets is completed, said Ant Group, when “the supplier can then use the credit line to purchase additional raw materials if another factory places a new order. In this case, every time the upload of a receipt happens, it is considered a digital asset.”
The Ant Group has made no secret of its fast-growing blockchain plans. Earlier this month, media outlets in China reported that its Ant Blockchain subsidiary was planning to build up a talent pool of blockchain specialists from some of the top tech universities in the world to last it “the next 20 years.”
The company is famously the operator of the Alipay e-pay solution, which together with Tencent-run WeChat Pay, has cornered around 15% of the Chinese payments market.
Alibaba affiliate Ant Group has revealed details about the nature of the 100 million+ “digital assets” it said are uploaded onto its AntChain blockchain network “every day.”
As reported, the Ant Group earlier this week announced that it has launched AntChain, calling it a “new technology brand for the Ant Group’s blockchain-based solutions.”
The company claimed that it “now has the largest productivity blockchain platform in China, with the ability to process and support one billion user accounts and one billion transactions every day.”
Cryptonews.com asked the Ant Group to clarify what these digital assets were, and the Chinese company responded, explaining via email,
“Digital assets are things like transaction records, shipping information, invoices, copyright certificates and so on. They are typically uploaded by companies using AntChain.”
The company added that in the case of shipping-related firms using the platform, multiple “digital assets” can be uploaded to use the platform to enable them to conduct faster and more effective transactions.
The firm stated that shipping companies, logistic sub-contractors as well as last-mile delivery vendors can all upload their records onto the AntChain network, so that each participant can know the status of shipping assignment without having to verify through traditional means, such as making a phone call or sending a fax.
The company also explained that its solution is finding a home in the world of trade and supply chain financing.
In the case of a supplier who “receives a receipt after sending a batch of components to a client factory,” the company noted that “usually the factory won't pay immediately but will pay in a few months’ time.”
Instead, the company stated,
“The supplier can then take the receipt to a bank and ask for a loan. However, traditionally it's very complicated and costly for the bank to verify if the receipt is real or not, but if the supplier, factory and the bank all use AntChain then the moment the factory issues the receipt (which represents a certain amount of account receivable), the bank will know instantaneously that it’s real and can then automatically assign a credit line based on the receipt for the supplier.”
The process of creating digital assets is completed, said Ant Group, when “the supplier can then use the credit line to purchase additional raw materials if another factory places a new order. In this case, every time the upload of a receipt happens, it is considered a digital asset.”
The Ant Group has made no secret of its fast-growing blockchain plans. Earlier this month, media outlets in China reported that its Ant Blockchain subsidiary was planning to build up a talent pool of blockchain specialists from some of the top tech universities in the world to last it “the next 20 years.”
The company is famously the operator of the Alipay e-pay solution, which together with Tencent-run WeChat Pay, has cornered around 15% of the Chinese payments market.
