Goldman Sachs Abandoning Crypto Trading Desk is Fake

Goldman Sachs Abandoning Crypto Trading Desk is Fake

Two days later, at San Francisco’s TechCrunch Disrupt Conference, Martin Chavez, Chief Financial Officer from Goldman Sachs, clarified that statement about the bank’s cryptocurrency trading desk plan abandonment as untrue

In September 5, news about Goldman Sachs backing out of their plans for a cryptocurrency trading desk has hit the Internet. It is said to be one of the reasons why the market has abruptly fallen in a span of just a few hours. But today, two days later, this news is labeled as false.

At San Francisco’s TechCrunch Disrupt Conference, Martin Chavez, Chief Financial Officer from Goldman Sachs, clarified that statement about the bank’s cryptocurrency trading desk plan abandonment as untrue:

He explains the bank has not given a timeline on when this desk will happen. He speaks about probing digital assets but its development will happen gradually.

A cryptocurrency trading desk is similar to the traditional trading desk found in trading floors. The transactions of buying and selling securities and other investment products happen on a financial firm’s trading desks. Individuals working on the desks are licensed traders. They the ones who interact with buyers and sellers. Each of them is specialized on a particular form of investment.

The banking giant is already testing the waters of cryptocurrency. It is said to be providing liquidity for CBOE and CME’s Bitcoin futures.

Related news

Binance futures market maker ‘attack’ turns out to be a bug

Binance almost became the victim of a market maker attack in the early hours of Sep. 16. However, the exchange’s CEO Changpeng Zhao soon revealed that the “attack” on the new futures platform was actually the result of a bug, causing the crypto-community to criticize him for making hasty accusations. A “known” market maker allegedly attacks Binance After officially opening for business on Friday, Sep. 13, the eyes of the crypto industry were pointed at Binance’s futures platform. While the weekend went on without any hiccups, the platform saw some serious drama as the workweek began. Changpeng Zhao, the CEO of Binance, announced that a market maker tried to attack the futures platform. In a Twitter post, Zhao said that the attacker was a “market maker” from a small futures exchange, but that no one was liquidated. A market maker from a smaller futures exchange tried to attack @binance futures platform. NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that. — CZ Binance (@cz_binance) September 16, 2019 Zhao shared a screengrab of the futures platform that showed Bitcoin futures briefly dropping from $10,324 to $10,042. In a follow-up tweet, Zhao explained that a “well-known” account was responsible for the failed attack, adding that this was the second time such an attack was tried on Binance. The attacker is a well-known account that trades with @binance, and started their own futures exchange a few months ago. This was the 2nd attempt they tried. Shame! — CZ Binance (@cz_binance) September 16, 2019 The alleged attacker didn’t manage to take advantage of the sudden price dip and force other Binance users to get liquidated. Zhao explained that this was prevented by the fact that Binance’s futures platform doesn’t use the futures price for liquidation, but the exchange’s own index price. Market maker attack actually a bad parameter However, Zhao has been known to be quick on the trigger when it comes to reactions and accusations, especially on Twitter, which is why most of his followers took the announcement with a grain of salt. Many criticized him for posting harsh accusations without investigating the matter first, saying rash decisions like that made them trust Binance less. Imagine being so unprofessional that you publicly call someone out for manipulation without the facts — Ben (@BenLearnsTradin) September 16, 2019 It quickly turned out that the sudden drop in futures prices wasn’t the result of a malicious attack, but a consequence of a bug on the platform. An hour after posting the original tweet, Zhao said that he had a chat with the client he suspected was responsible for the attack and found that it was an accident due to a “bad parameter on their side.” While Zhao has been known to handle situations like these a bit more lighthearted than other exchange execs, few seemed to support the way he handled this. Even Binance Coin (BNB) couldn’t stay immune to the drama—the exchange’s native token dropped 2.2 percent following the news. The post Binance futures market maker ‘attack’ turns out to be a bug appeared first on CryptoSlate.

Spark Swap Brings BTC/USD Trading Pairs to Customers

Spark Swap, the new crypto startup that raised nearly $4 million in a recent seed funding round, has announced its support for USD, allowing customers to purchase bitcoin units directly through their Lightning wallets.  Spark Swap: Harnessing the Power of Lightning The purpose of the funding round was to build a “non-custodial cryptocurrency exchange” atop the ever-popular Lightning Network, which seems to be growing in popularity as of late. Bitcoin is the oldest and most established cryptocurrency in the world, but this comes with a few disadvantages, the first one being its speed. Given its age, bitcoin’s technology suffers in terms of its transaction times, which typically require a few days to complete. Compare this with the transaction capabilities of blockchains like Ethereum and EOS, which both utilize smart contracts to complete transactions within the scope of a few hours or a few minutes. Bitcoin may have given birth to the crypto industry, but in some areas, there’s a lot to be desired, which is where the Lightning Network appears to be gaining momentum. The platform touts its own quickness and claims it can boost the rapidity of bitcoin payment speeds tenfold. The problem, however, is that the Lightning Network is still not a mainstream application, and few businesses have integrated it into their infrastructures. That’s where enterprises like Spark Swap come in. In a recent interview, Trey Griffith, the founder of the company, explains:  We’ve long wanted to support BTC and USD as a trading pair since it’s the most important and popular trading pair. We decided to build it the way we did in order to make it accessible to a much larger group of people who currently lack a convenient option for buying bitcoin without giving up custody. All a person needs to do is download the company’s desktop app and connect it to an LND Lightning Network node. They must complete the company’s identity verification process and transfer USD funds into their account. Once this is done, the customers can initiate trades and receive bitcoins in exchange for their dollars. Brett Gibson, a partner at Initialized Capital, states:  This product delivers on the promise of bitcoin as a self-sovereign currency while still delivering a convenient user experience by building on the Lightning Network. Use Is Up, Up, Up According to one source, use of the Lightning Network has been growing heavily over the past month, with “nodes and payment channels on the rise.” One of the big benefits of the Lightning Network, other than its speed, is the fact that it can handle a wide range of payments, from very small to very large. These payments settle instantly on the network and allows Bitcoin to scale as many as several million payments each day. Thus far, nearly 10,000 Lightning Network nodes are already in play. The post Spark Swap Brings BTC/USD Trading Pairs to Customers appeared first on Live Bitcoin News.
Live Bitcoin News

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.