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Huobi’s V2.0 ‘Stablecoin for Stablecoins’ Aims to Close Arbitrage Loophole

Stablecoins are increasing their visibility within the crypto space as the universe of stablecoins expands and they become easier to trade. Now, digital exchange Huobi Global offers, as a trial, the HUSD Solution V2.0 to provide traders with support for interchangeability between various stablecoins. All Stablecoins Seek to Lower Volatility But They are Not 1:1 Interchangeable Stablecoins’ purpose is to minimize price volatility by being pegged to a fiat currency or an exchange-traded commodity, such as a precious or industrial metal. The HUSD Solution V2.0 offers support for interchangeability between four stablecoins: Gemini Dollars (GUSD), Paxos Standard (PAX), True USD (TUSD), and USD Coin (USDC). These four coins are represented by one token, the HUSD. Users can deposit any PAX, TUSD, USDC, or GUSD, and then withdraw any of these four tokens, regardless of which token was initially deposited. Neutral’s article entitled “Case Study of Huobi’s HUSD Solution,” explains, When you deposit any kind of stablecoins, they will be shown as HUSD in your account. You may withdraw any kind of stablecoin; when the balance amount of a certain stablecoin is not sufficient in your account, you may choose any other stablecoin with enough balance amount to withdraw. When announcing the launch of HUSD (V.1) in October 2018, Huobi Global claimed that the HUSD aimed to facilitate traders’ decision-making processes among various stablecoins, while saving trading costs. However, design flaws were detected in the first HUSD version. According to Neutral, the problem with the original version stemmed from the fact that it allowed for 1:1 interchangeability between PAX, TUSD, USDC, and GUSD. That is, any of these coins could be exchanged for USD 1. However, Neutral notes that Huobi Global overlooked the fact that “stablecoins are not interchangeable on a 1:1 basis even though they are equivalent in redeemable value.” These slight price discrepancies contributed to the issuance of various tokens to people at a rebate to increase liquidity. As a result, Traders then took advantage of the situation, using the HUSD solution to redeem and arbitrage for full price. In this situation the 1:1 ratio between stablecoins offered by HUSD did not hold, and market makers took advantage to earn a quick profit. HUSD Solution V2.0 now removes the fixed 1:1 exchange rate, basing the values between stablecoins not only on pricing but also on various other factors. For example, among other factors, the underlying stablecoin price is now set by data obtained from various mainstream exchanges. And, “Users have to designate time and amount independently to interchange stablecoins, going from an automatic exchange to a manual one.” Is There a Stablecoin Craze? The stablecoins universe is expanding. For example, in October 2019, GMO Internet announced the launch of a Yen-pegged stablecoin. And, last month, Cryptogarage joined forces with Tokyo Tanshi to launch the Liquid sidechain based SETTLENET suite, which aims to be the first application Yen-pegged stablecoin. In January 2019, KRWb also announced the upcoming launch of the KRWb, which is going to be a 1:1 Korean Won-pegged stablecoin. This past week saw JPMorgan unveil its JPM Coin stablecoin that will be used in securities transactions and as part of the bank’s treasury services features. Moreover, Facebook, according to a Bloomberg report, wants to issue its own stablecoin to allow WhatsApp users to exchange money. For many, stablecoins represent the future. As CoinJar co-founder Asher Tan put it, “It’s a craze right now.” Do you think stablecoins will become mainstream crypto assets shortly? Let us know your thoughts in the comment section below. Images courtesy of Shutterstock The post Huobi’s V2.0 ‘Stablecoin for Stablecoins’ Aims to Close Arbitrage Loophole appeared first on Bitcoinist.com.
Bitcoinist

Bitcoin [BTC] dominated by stablecoins with regards to market opportunity: Satoshi Capital research

Stablecoins come into the picture at a time when the massive fluctuation of digital assets impedes their application. A recent report called ‘Stablecoins: The new bank account’ has revealed an optimistic time ahead for these stablecoins. The digital coins pegged with fiat or gold have contributed to the disruption of traditional payment space. Satoshi Capital Research on its Twitter handle posted: “[New Research] — Stablecoins: The New Bank Account Stablecoins are digital tokens that represent national currencies and are issued using a variety of bitcoin-based technologies, representing an $18 trillion market opportunity.” The research suggests that the total market opportunity for stablecoins exceeds $18 trillion while that of Bitcoin [BTC] stands at somewhere around 15 trillion. The colossal difference between stablecoin and conventional banking institutions is that it provides a payment processing channel that is time and cost efficient. A significant edge that pegged currencies have over traditional banking accounts is that anyone can access and transfer funds in real time with no transactional fee involved. The processing fee and time in terms of stablecoin is nil. On the other hand, the processing time for US domestic transfers takes around 24 hours at a fee of $20 per transaction and cross-border payment accounts for a processing time of 48 hours at a fee of $40 per transaction. Tether [USDT] has been the stablecoin that has been around for the longest time, since its inception in 2014, and it continues to dwarf the newer stablecoins in the market. The research exhibited the numbers which backed Tether’s dominance over recent players [like TrueUSD, Paxos Standard Token, Gemini Token, among others] in the space. The entire stablecoin space’s valuation despite the entry of new players in 2018 stood at more than $700 million while the traded volume totaled at more than $11.5 billion. Tether [USDT] had an issued value of $2,036 million. The cumulative daily trading volume of the oldest stablecoin had been registered at $ 2,950 million and the trading volume for the year 2018 totaled at $1,080 billion. The report also mentioned a whopping a $600 trillion transfer volume of stablecoins in 2018 via Domestic bank transfer, out of which Tether [USDT] scooped a significant $109 billion volume, a 624% increase in its share from its $15 billion volume the year before. Stating that this breed of digital asset is efficient as a parallel currency mainly due to its digital nature, the report asserted: “To people operating within parallel currency economies today, such as Venezuela, stablecoins offer meaningful competition to traditional bank accounts as there are no limitations on currency denominations or transfer amounts and frequency.” Despite being a critical contender, stablecoins have a long way to go with respect to its offerings to compete with traditional banking establishments in a mainstream scenario. The post Bitcoin [BTC] dominated by stablecoins with regards to market opportunity: Satoshi Capital research appeared first on AMBCrypto.
AMBCrypto

Top Trending Cryptocurrency News of The Week: VanECK, Binance and Gemini Among Major Newsmakers

Key highlights VanEck resubmits its Bitcoin ETF application Binance allows buying crypto with credit and Debit cards Merck receives US Blockchain Patent Crypto Crimes peak again Iran reverses its Crypto Ban ICO regulation in Malaysia Gemini passes SOC 2 security audit VanEck resubmits its Bitcoin ETF application With VanEck’s withdrawal of its application, it looked like a dead-end for Bitcoin ETF. But this week bought back all the excitement as VanEck resubmitted its application. What looked like a masterstroke, now with a new application, VanEck has just forwarded its deadline to at least few months which could be enough time for market conditions to improve and most likely Bakkt would have been launched bringing an end to all the doubts SEC has with respect to an ETF. Binance allows buying crypto with credit and Debit cards Binance, the world’s largest cryptocurrency exchange by market cap of $618 million as per the data provided by the Coinmarketcap has just announced that users will be now able to buy cryptocurrencies through their debit and credit cards. The exchange partnered up with the Israel-based payment processing firm Simplex to enable the purchases with Mastercard and Visa. Merck receives US Blockchain Patent Another large global company embraces blockchain and this time it’s the pharma giant Merck. This week, Merck received a patent relating to “crypto-objects ”  from the  United States Patent and Trademark Office (USPTO). This patent builds upon others that the company has established and combines Artificial Intelligence (AI) with blockchain technology. It this innovation goes through, it is expected to improve the integrity of physical products, in pharmaceuticals, in global supply chains. Crypto Crimes peak again Crypto industry is definitely maturing but the shadow of wrong activities still spreads darkness over the crypto world. According to the latest report released by CipherTrace’s new Cryptocurrency Anti-Money Laundering Report, crypto crime hit a record high. The report said that $1.7 Bn in cryptocurrency was stolen and scammed in 2018 — a dramatic rise in criminal activity, a whopping 3.6 times more than in 2017. Iran reverses its Crypto Ban Well as the acceptance of crypto is raising, more and more countries are moving towards regulaltion. The recent addition to this list is Iran which has taken a complete u turn from banning crypto to now regulating it. The Central bank of Iran had last year banned cryptocurrecy, but now has released an early draft of its regulations on cryptocurrencies. As reported by Aljazeera, the Apex Bank of Iran has announced the suspension of the existing ban on cryptocurrencies with limited restrictions. ICO regulation in Malaysia After Iran, another Asian country is regulating crypto and this time it is the island nation of Malaysia which is regulating cryptos and ICO. Accroding to the recent annocement, the Securities Commission Malaysia has shared plans to regulate the offering and trading of digital assets such as cryptocurrencies and ICOs.  The Commission has said that it will soon release guidelines that will establish the criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection. Gemini passes SOC 2 security audit Billionaire Bitcoin investors Tyler and Cameron Winklevoss‘s Newyork based trust reached a new milestone. They have successfully cleared the criteria that fall under SOC 2 review for Service Organization Type 1 as per the American Institute of Certified Public Accountants (AICPA) guidelines. Big 4 auditor Deloitte & Touche LLP (Deloitte) performed an independent evaluation of the security controls maintained at the trust.   The post Top Trending Cryptocurrency News of The Week: VanECK, Binance and Gemini Among Major Newsmakers appeared first on Coingape.
CoinGape

DAI — a decentralized opposition to the ‘banking cartel’ of stablecoins accumulates 1.7

DAI — a decentralized opposition to the ‘banking cartel’ of stablecoins accumulates 1.7 million ETH in reservesNot without an ample dose of skepticism, 2018 can indeed be referred to as the year of the stablecoin. Amid total backlash against Tether, and yet high demand for stable cryptocurrency as a means of settlement, a growing cohort of stable coin solutions were rolled out to the market. These appear to be the stablecoins that enjoy most credibility among crypto exchanges today: Paxos Standard PAX, Gemini GUSD, Circle USDC, Carbon CUSD, TrustToken’s TUSD. Yet, it’s safe to say that none of the above products is truly decentralized, essentially being more of a token with the right to claim a fiat USD equivalent stored in a centralized storage (most often on a bank account).What it means is that the use of those coins is linked to the same array of difficulties as those of conventional fiat money, i.e. while their value is guaranteed by the emittent, their use is most often than not accompanied by complicated KYC/AML procedures, with the risk of bank accounts being suspended due to the coins considered as ‘illegally acquired’. Hence, the use of the majority of stablecoins is completely irrational in financial services of Web 3.0., or the ‘free Internet’, since it implies a significant amount of risks. It’s safe to suggest that in a perfect world a stable means of payment for Web3 should be emitted by the community, with its value regardless of actions of the third parties.Today it seems that the only stable coin that is securely emitted in a decentralized manner is MakerDAO’s DAI. It is also one of the most popular #DeFi apps in Ethereum ecosystem. What is it that makes DAI so unique generating an explosive amount of community trust? Here we will touch upon the core mechanics of MakerDAO emission system, and shed some light on how you as a Ethereum user can benefit from that today.MakerDAO concept — how does a decentralized stable coin operate? In essence, at the core of MakerDAo product is the mechanics of emission of a stable means of payment (i.e. money) deployed as a number of smart contracts in Ethereum network. In principle, the scheme of emission is akin to that of money emission secured by gold, with ETH taking the place of gold here. A specific amount of ETH is sent to a smart contract that generates a stable token (DAI), and then sends it to the user. DAIs created in this manner become the debt outstanding to MakerDAO (that in itself becomes a decentralized emission system) secured by the collateral — in exact same manner as traditional fiat money is essentially debt outstanding to a central bank. However, in contrast to traditional central banks, with DAI any user can create new decentralized money without any obstacle. At the same time, due to complete automation of MakerDAO system by design, it’s impossible to create money not secured by ETH, and the system is completely transparent to monitor.An elephant in the room is how would DAI actually secure the stability of DAI exchange rate of $1? The concept of excessive consumption comes into play here. When emitting DAI, the secured collateral should be no less than %166, i.e. the debt in the amount of 100 DAI should be emitted to each $166. The emission made by an individual user becomes a CDP, or a collateralized debt position, each of which can be monitored on a dedicated web-page. When ETH price drops, provided that the index of position coverage drops below 150%, the position will start to liquidate. And the collateral asset, i.e. ETH, is sold at the discount for DAI that are used to cover the debt. The recent drop in ETH price from $200 to $86 over a short time span resulted in the mass close up of the debt positions due to the insufficient coverage ratio, yet DAI exchange rate stuck to ~$1.00, which confirms the high level of system stability.DAI Emission cycleMore so, the community trust in DAI is extremely high. According to the latest data points, the system has accumulated enormous amount of 1.7 million of ETH, or USD 255 million, as the collateral (which makes up >1.5% of all the ETH existing at the moment). More than 70 million DAI has been generated so far, which equals to ~$70 million of stable coins, with the total of collateral coverage amounting to 370%. Many dApps are also integrating DAI to provide their users with the option to make settlements in stable currency.There is another token used in MakerDAO system — a Maker token — designated to give a voting right, when managing percentage stakes (since DAI emission is akin to the emission of conventional money with its borrowing rate), and used to pay off the borrowing rate. Paying off the percentage for the emission of DAI in MKR token is a unique economic precedent in itself. This mechanics allows to avoid a typical concern with fiat money, when the debt of the central bank exceeds the amount of issued money. DAI emission system overrides this concern completely.How you can use DAI and MakerDAO to your advantage right nowThe use of MakerDAO emission mechanism can prove interesting for the purpose of crediting with ETH collateral, or receiving a decentralized credit leverage. Hence, having ETH 100 ($15,000), one can generate up to $9,000 in DAI that later can be spent to purchase some extra ETH.DAI emission system can also become an accessible credit solution. With ETH as collateral, it will be possible to create a certain amount of DAI that will be reimbursed later from the future proceeds. With the interest rate of 2.5%, and the absence of banking commissions, MakerDAO might look like a decent alternative to a bank collateral credit line.Is DAI to become a viable alternative to the ‘banking cartel’ of stable coins?Despite the technological innovation, durable lines of codes tested by the array of events at the crypto market, and respect of crypto enthusiasts, mass adoption of any decentralized financial product is no easy task. First off, since all of DAI are created under the ETH collateral, the total amount of DAI is restricted. If 10% of all the ETH is used as collateral, with the exchange rate of $150, only $939 mln DAI can be created. Of course, once ETH returns to the peak of its $1000 price, this amount will surge, yet it will still be insignificant on a global scale.The second issue is liquidity and accessibility for sale-purchase. However, despite the recent listing of DAI and MKR on Coinbase, DAI is traded mostly against ETH. At the same time, it’s apparent that mass adoption of DAI, the entry and exit points into fiat are very much needed, since the majority of DAI use cases (like payments and crediting) would eventually require the exit to fiat. Yet, there is not so many options to sale-purchase DAI for fiat currencies — there are only two exchanges that have those trade pairs at the moment. One of them is Ethfinex, yet it cannot boast the most convenient ways to deposit and withdraw funds. The other one is EXMO, who recently announced support for DAI and MKR and introduced fiat pair to USD. Oddly enough, there are no more instances of DAI against fiat with non-zero liquidity at the market currently.This is partially due to the fact that the majority of larger exchanges for apparent reasons would be way more interested in cooperating with institutional players rather than decentralized (i.e. completely independent) system of electronic cash flow. Therefore, despite some apparent advantages of DAI for an average user, such as transparency and independence of the third parties and all sorts of middle men, the competition with the banking cartels will be exceptionally strong. Still, DAI has apparently created a niche of its own that is bound to expand gradually, with restriction of total volume of issued coins and liquidity influx being the major factor contributing to its adoption in Web 3.0 ecosystem. Fast forward to today and we’ve witnessed the growing excitement in the space, with more than $70 million US dollars created in MakerDAO ecosystem, compared to only ~$3 million of the last year. Knowing that the cryptomarket has historically shown interest to vacant means of payment, we can only guess how many DAI will be generated and subsequently used one year from now.DAI — a decentralized opposition to the ‘banking cartel’ of stablecoins accumulates 1.7 was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Hackernoon

In Tether We Trust? USDT Still Dominant Stablecoin

Tether (USDT) remains the most popular stablecoin, accounting for more than half of all value moving from Bitcoin to fiat or fiat-denominated currencies in December. Has the sector gone back to bed with the original stablecoin? A recently published report by CryptoCompare, a cryptocurrency statistics source, found that Tether represents 75% of Bitcoin (BTC) trades going into other stablecoins or fiat currencies.  Compared to November, the proportion of BTC trading volume going into USDT actually increased by 16.5%. Based on the circulating supply reported on CoinMarketCap, Tether accounts for 73% of the total stablecoin market. The report compared Tether’s trading volume with that of other collateralized stablecoins, which are backed 1:1 by the US dollar (USD). This included the Paxos Standard Token (PAX), the Gemini Dollar (GUSD), TrueUSD (TUSD), as well as Coinbase’s USD Coin (USDC). The BTC-USDT market was also bigger than bitcoin trading into popular fiat currencies, such as the US dollar (USD), Euro (EUR) and Korean Won (KRW). This suggests traders preserving value in the bear-cycle are nonetheless keeping funds in crypto, rather than divesting completely from the asset class.   Credit: CryptoCompare   Tether pairs, unsurprisingly, had the highest trading volumes within the stablecoin market. The most popular pair was between Tether and PAX, which counted for 75% of the total trading volume in December; volumes were up by 70% from November, the report found. Volumes for USDT pairs with TrueUSD have remained static since October.   Volume of USDT pairs with PAX (red) have increased significantly since October. Credit: CryptoCompare.   Trust in Tether. Established in 2014 – originally as Realcoin – Tether was the sector’s first stablecoin. Tether Limited, the parent company, generates tokens whenever actual fiat currency is deposited in their reserves. It works as a meta-protocol on the Bitcoin, Ethereum (ETH) and Litecoin (LTC) blockchains. Despite widespread acceptance, there are doubts about the amount held in Tether’s reserves. At one point in mid-September, the USDT total supply verged on breaking the $3bn boundary. With no official audit, there was widespread concern Tether Limited was generating  more USDT tokens than their dollar reserves. This came to a head when the USDT temporarily lost its parity to the greenback, in October. On some exchanges, notably Kraken, Tether reached at a low of $0.85. Concerns of imminent liquidation led many traders to divest from Tether into other asset-backed stablecoins; TrueUSD’s trading volume tripled in the same timeframe. But Tether has since staged a remarkable recovery. USDT regained parity as total supply shrank by approximately a billion dollars. In November, Tether Limited’s new banking partner publicly confirmed that the company held more than $2bn worth in reserve. Financial news site Bloomberg  reported that it believed Tether had the requisite reserves in an analysis piece published just before Christmas. Will trading volume remain dominant? USDT supply is still $800m lower than its peak in September, but it is still the largest stablecoin and seventh largest cryptocurrency overall. Its 24h trading volume – a good gauge over the health of a market – is frequently above the $3bn mark, suggesting that the stablecoin is far from running out of road. Constantine Tsavliris, a research and data analyst at CryptoCompare, is not surprised that USDT remains the dominant stablecoin. However, he notes the fact that rival stablecoins like GUSD and PAX have been making clear inroads. Exchange adoption, Tsvaliris says, has made those inroads even deeper.  Binance made PAX, TUSD and USDC base currencies, alongside USDT, at the end of November. Will it last? James Roy Poulter, CEO of the cryptocurrency investment firm The Reserve, says that Tether is still enjoying its first mover advantage. But as alternatives mature, he reckons traders will begin to move value out of USDT. “Tether was the first, has always been the market leader by a considerable margin, and should not expect to be toppled just from bad press,” he said. “There is still no ‘go-to’ alternative brand; but this will change as competition is increasing against Tether, and very successful other experiments like Maker begin to emerge.” Tether’s grip on the stablecoin market may one day hang by a thread, but for now it’s still hanging on. The author is invested in digital assets, including BTC and ETH which are mentioned in this article.   Join the conversation on Telegram and Twitter! The post In Tether We Trust? USDT Still Dominant Stablecoin appeared first on Crypto Briefing.
CryptoBriefing

Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’

The Future is…Fresh off the launch of their first marketing campaign, Cameron and Tyler Winklevoss recently sat down with ‘Balancing the Ledger’. In this interview, the twins discussed cryptocurrencies at large. The overall theme was regulation; what Gemini is doing to support it? and where is it needed?Two areas in which the twins see much promise are stablecoins, and of course, digital securities.  For example, speaking on the promise of tokenized securities, it was stated, “The ICO mania of 2017 – we kind of view that as the pets.com of the securities token world. They were unregistered and it was crazy town for about six months there. I think the next wave will see the real innovation, and the really interesting assets that become tokenized – like real estate, like buildings that are not currently really traded in liquid fashion. So that’s exciting.”Working togetherOne interesting takeaway from the interview was the twins’ perspective on the relationship between stablecoins and digital securities. They noted that security token issuers could capitalize on the benefits of stablecoins, by using them to issue dividends.Stablecoins are designed to inherently have less volatility than regular cryptocurrencies.  By using them to issue dividends to token holders, issuers would be able to capitalize on the efficiency of a digital currency, while reducing exposure to volatility.Regulation a good thingRegulation can be a difficult balancing act between allowing innovation, yet ensuring safe practices. Despite this difficulty, it is still a necessity. Multitudes of investors have lost fortunes on un-regulated ICOs, as made evident throughout the last two years.It is this very problem that has led to the popularity of the regulated digital security offering. The twins echo this sentiment, as seen in their marketing campaign, pushing for a regulated crypto.GeminiThe Gemini headquarters are in New York.  The company was founded in 2014, and is a product of cofounders Tyler and Cameron Winklevoss. Above all, Gemini acts as both a custodian and exchange for digital assets. In the time since its inception, Gemini has taken a unique approach to growth, by embracing regulation from day 1.When asked if Gemini would venture into other sectors, Cameron indicated a desire to expand into digital securities. He stated, “Virtual securities tokens is a real thing – and those sort of backed by real assets, there is a bright future there, and we may move into that.”Winklevoss TwinsIt is hard to find someone that hasn’t heard of the Winklevoss twins. They are Olympic Athletes, that have gone on to be wildly successful in the world of finance.The brothers, Tyler and Cameron, are currently enveloped in advancing the world of blockchain. As they are believed to be one of the largest holders of Bitcoin in the world, this is no wonder. They closed out their interview by jokingly saying that ‘only Satoshi has more’. To view the interview in its entirety, click HERE.The post Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’ appeared first on Securities.io.
Securities.io

How MakerDAO’s Decentralized DAI Stablecoin Token Looks to Oust the Controversial Tether (USDT)

The previous year has been marked by a lot of things, including high-profile crypto exchange hacks, two market crashes, a year-long bear market, and of course — stablecoins. 2018 has been quite an eventful year for fiat pegged coins, which started emerging due to high volatility of regular cryptocurrencies. The most popular stablecoin, Tether (USTD) was also a center of a large controversy because it was unable to provide insight into its bank accounts and confirm that it can actually back all of its circulating coins. However, a number of other stablecoins emerged, threatening to take its place if Tether doesn't start providing regular audits. USD Coin (USDC), Paxos Standard (PAX), Gemini (GUSD), and TrueUSD, to name a few, are all quite reputable compared to USDT. While none of them are truly decentralized due to the fact that they depend on fiat currencies in possession of their parent companies, they still provided much-needed stability in difficult times that crypto investors had to go through. Still, their connection to fiat money means that they are troubled by a different set of difficulties. While their value may be guaranteed, they often do not comply with AML and KYC procedures, which may lead to the banks suspending accounts if there is suspicion of the coins being used for illegal activities. It is because of this that many view stablecoins as a current alternative to crypto, but not as a long-lasting solution that will lead to the decentralized web, which aims to be controlled by the community. In fact, the only stablecoin that has the real potential while still being fully decentralized is MakerDAO's DAI. How does DAI differ from other stablecoins? While most other stablecoins are backed by fiat currencies, there are also other methods of securing a stable price. One such method would be to control the number of coins in circulation, and some projects are trying to control their value in this way. However, other coins, such as DAI itself, tend to take a different approach and secure their value by relying on other tokens. DAI keeps its value stable by deploying multiple smart contracts in Ethereum's network. Instead of being backed by fiat money, or some other type of physical asset, DAI uses a specific amount of Ethereum obtained through smart contracts to generate its own stable tokens. There are a lot of similarities between DAI and traditional money, although DAI can remain decentralized, as it is fully automated and transparent. This also means that any user can create new decentralized money without any issues, as long as it is secured by the appropriate amount of ETH. The concept was put to the test recently after ETH price dropped from $200 to $86, and everyone was wondering how DAI will react to the change. However, DAI remained stable, as the coins' creation requires that the secured collateral should be at least 166%. In other words, the emission made by users becomes a collateralized debt position, and it starts to liquidate when the index of position coverage falls under 150%. ETH is then sold at a discount, which allows users to cover the debt. Due to the price drop not affecting DAI, the coin inspired a lot of trust in the community, and many have turned to this particular stablecoin as a result. In fact, some estimates claim that the DAI system managed to accumulate around 1.7 million ETH, which translates to $255 million. Meanwhile, the amount of DAI coins has climbed to 70 million, In addition, MakerDAO system also houses another coin — Maker (MKR). This is a token that provides network participants with voting rights, as well as the ability to pay off borrowing rates. The system which combines these two coins has proven to be very stable and practical, with a number of new benefits being available to the users. Can DAI replace ‘centralized' stablecoins? The main question regarding DAI is whether or not it can take the spotlight away from stablecoins that can be affected by banks. There are several problems with this, with the first one being the restriction on the total amount of DAI. For example, using 10% of Ethereum as collateral only generates about $939 million in DAI at the current prices. Of course, this amount can surge together with Ethereum's own value. Then, there is the problem regarding liquidity and DAI's ability to trade, as it is mostly just paired against Ethereum. There is also a noticeable lack of DAI trading pairs against fiat, which means that anyone wishing to cash out has to go through several currencies (and a number of fees) in order to get to their money. Right now, there are only two exchanges that offer these trading pairs — Ethfinex and EXMO. One reason for such a small number of DAI/USD trading pairs is the fact that most of the exchanges are interested in working with institutions, instead of decentralized systems. In other words, despite DAI's advantages, it is difficult for this coin to gain support. Even so, DAI is successfully expanding on its own, albeit slowly. In the last year, MakerDAO ecosystem managed to grow from $3 million to more than $70 million, meaning that the expansion of the ecosystem is still happening.
Bitcoin Exchange Guide

TrustToken AutoSweep Technology to Improve TrueUSD Stablecoin Wallet Address Management

The cryptocurrency company TrustToken has launched a new technology called AutoSweep that would improve the efficiency of smaller exchanges using the TrueUSD stablecoin. The technology has been integrated into a TrueUSD smart contract that would allow platforms to easily manage crypto wallets. In an announcement released on Monday by the company, exchanges would be able to manage clients funds in a much easier way than before. It will allow the exchange to provide clients with a unique deposit address. This deposit address will be much to the exchange’s central wallet. According to the press release shared by TrustToken, AutoSweep will work in a similar way as email aliases. About it they explained: “With email aliases, users can set up multiple outward-facing addresses (e.g. Jeff@amazon.com; Jeff.Bezos@amazon.com ceo@amazon.com) that receive emails into a single inbox. Likewise, AutoSweep allows anyone to create multiple outward-facing deposit Ethereum addresses that automatically settle into a single Ethereum wallet.” In a conversation with CoinDesk, Terry Li, a software engineer at TrustToken commented that the feature can also benefit merchants and other companies that use the TrueUSD token. This will reduce the costs of exchanges since they will not have to aggregate all the users’ tokens into their hot wallet. It also includes less key management. Gas Cosman, the head of product and engineering at TrustToken, mentioned that the new feature and implementation will be reducing fas costs for crypto exchanges and platforms. This means that each transaction will cost less than before to be sent through the network. The information released by TrustToken is very important. The stablecoin market is becoming larger every single month. In 2018, several stablecoins were launched including USD Coin (USDC) or Gemini USD (GUSD). All of them are trying to fight for a spot among the top 20, something that was exclusive to Tether (USDT). Now, USDC was able to grow as well and is currently the 19th largest digital asset. At the moment, TUSD is the 27th largest virtual currency in the market and the third largest stablecoin after USDT and USDC. With this implementation, new exchanges and platforms could start using this stablecoin for their daily activities.
Bitcoin Exchange Guide

DAI – A Decentralized Opposition to the ‘Banking Cartel’ of Stablecoins Accumulates 1.7 Million Eth in Reserves

Not without an ample dose of skepticism, 2018 can indeed be referred to as the year of the stablecoin. Amid total backlash against Tether, and yet high demand for stable cryptocurrency as a  means of settlement, a growing cohort of stable coin solutions were rolled out to the market. These appear to be the stablecoins that enjoy most credibility among crypto exchanges today: Paxos Standard PAX, Gemini GUSD, Circle USDC, Carbon CUSD, TrustToken’s TUSD. Yet, it’s safe to say that none of the above products is truly decentralized, essentially being more of a token with the right to claim a fiat USD equivalent stored in a centralized storage (most often on a bank account). What it means is that the use of those coins is linked to the same array of difficulties as those of conventional fiat money, i.e. while their value is guaranteed by the emittent, their use is most often than not accompanied by complicated KYC/AML procedures, with the risk of bank accounts being suspended due to the coins considered as ‘illegally acquired’. Hence, the use of the majority of stablecoins is completely irrational in financial services of Web 3.0., or the ‘free Internet’, since it implies a significant amount of risks. It’s safe to suggest that in a perfect world a stable means of payment for Web3 should be emitted by the community, with its value regardless  of actions of the third parties. Today it seems that the only stable coin that is securely emitted in a decentralized manner is MakerDAO’s DAI. It is also one of the most popular #DeFi apps in Ethereum ecosystem. What is it that makes DAI so unique generating an explosive amount of community trust? Here we will touch upon the core mechanics of MakerDAO emission system, and shed some light on how you as a Ethereum user can benefit from that today. MakerDAO concept – how does a decentralized stable coin operate? In essence, at the core of MakerDAo product is the mechanics of emission of a stable means of payment (i.e. money) deployed as a number of smart contracts in Ethereum network. In principle, the scheme of emission is akin to that of money emission secured by gold, with ETH taking the place of gold here. A specific amount of ETH is sent to a smart contract that generates a stable token (DAI), and then sends it to the user. DAIs created in this manner become the debt outstanding to MakerDAO (that in itself  becomes a decentralized emission system) secured by the collateral – in exact same manner as traditional fiat money is essentially debt outstanding to a central bank. However, in contrast to traditional central banks, with DAI any user can create new decentralized money without any obstacle. At the same time, due to complete automation of MakerDAO system by design, it’s impossible to create money not secured by ETH, and the system is completely transparent to monitor. An elephant in the room is how would DAI actually secure the stability of DAI exchange rate of $1? The concept of excessive consumption comes into play here. When emitting DAI, the secured collateral should be no less than %166, i.e. the debt in the amount of 100 DAI should be emitted to each $166. The emission made by an individual user becomes a CDP, or a collateralized debt position, each of which can be monitored on a dedicated web-page. When ETH price drops, provided that the index of position coverage drops below 150%, the position will start to liquidate. And the collateral asset, i.e. ETH, is sold at the discount for DAI that are used to cover the debt. The recent drop in ETH price from $200 to $86 over a short time span resulted in the mass close up of the debt positions due to the insufficient coverage ratio, yet DAI exchange rate stuck to ~$1.00, which confirms the high level of system stability. DAI Emission Cycle More so, the community trust in DAI is extremely high. According to the latest data points, the system has accumulated enormous amount of 1.7 million of ETH, or USD 255 million, as the collateral (which makes up >1.5% of all the ETH existing at the moment). More than 70 million DAI has been generated so far, which equals to ~$70 million of stable coins, with the total of collateral coverage amounting to 370%. Many dApps are also integrating DAI to provide their users with the option to make settlements in stable currency. There is another token used in MakerDAO system – a Maker token – designated to give a voting right, when managing percentage stakes (since DAI emission is akin to the emission of conventional money with its borrowing rate), and used to pay off the borrowing rate. Paying off the percentage for the emmission of DAI in MKR token is a unique economic precedent in itself. This mechanics allows to avoid a typical concern with fiat money, when the debt of the central bank exceeds the amount of issued money. DAI emission system overrides this concern completely. How you can use DAI and MakerDAO to your advantage right now The use of MakerDAO emission mechanism can prove interesting for the purpose of crediting with ETH collateral, or receiving a decentralized credit leverage. Hence, having ETH 100 ($15,000), one can generate up to $9,000 in DAI that later can be spent to purchase some extra ETH. DAI emission system can also become an accessible credit solution. With ETH as collateral, it will be possible to create a certain amount of DAI that will be reimbursed later from the future proceeds. With the interest rate of 2.5%, and the absence of banking commissions, MakerDAO might look like a decent alternative to a bank collateral credit line. Is DAI to become a viable alternative to the ‘banking cartel’ of stablecoins? Despite the technological innovation, durable lines of codes tested by the array of events at the crypto market, and respect of crypto enthusiasts, mass adoption of any decentralized financial product is no easy task. First off, since all of DAI are created under the ETH collateral, the total amount of DAI is restricted. If 10% of all the ETH is used as collateral, with the exchange rate of $150, only $939 mln DAI can be created. Of course, once ETH returns to the peak of its $1000 price, this amount will surge, yet it will still be insignificant on a global scale. The second issue is liquidity and accessibility for sale-purchase. However, despite the recent listing of DAI and MKR on Coinbase, DAI is traded mostly against ETH. At the same time, it’s apparent that mass adoption of DAI, the entry and exit points into fiat are very much needed, since the majority of DAI use cases (like payments and crediting) would eventually require the exit to fiat. Yet, there is not so many options to sale-purchase DAI for fiat currencies – there are only two exchanges that have those trade pairs at the moment. One of them is Ethfinex, yet it cannot boast the most convenient ways to deposit and withdraw funds. The other one is EXMO, who recently announced support for DAI and MKR and introduced fiat pair to USD. Oddly enough, there are no more instances of DAI against fiat with non-zero liquidity at the market currently. This is partially due to the fact that the majority of larger exchanges for apparent reasons would be way more interested in cooperating with institutional players rather than decentralized (i.e. completely independent) system of electronic cash flow. Therefore, despite some apparent advantages of DAI for an average user, such as transparency and independency of the third parties and all sorts of middle men, the competition with the banking cartels will be exceptionally strong. Still, DAI has apparently created a niche of its own that is bound to expand gradually, with restriction of total volume of issued coins and liquidity influx being the major factor contributing to its adoption in Web 3.0 ecosystem. Fast forward to today and we’ve witnessed the growing excitement in the space, with more than $70 million US dollars created in MakerDAO ecosystem, compared to  only ~$3 million of the last year. Knowing that the cryptomarket has historically shown interest to vacant means of payment, we can only guess how many DAI will be generated and subsequently used one year from now. Authors: Olga Grinina and Vasily Sumanov Image(s): Shutterstock.com The post DAI – A Decentralized Opposition to the ‘Banking Cartel’ of Stablecoins Accumulates 1.7 Million Eth in Reserves appeared first on NullTX.
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The Daily: Binance Adds Stablecoin Pairs, Tzero Patents Integration Platform

Cryptocurrency exchange Binance is opening trading for three stablecoin pairs. Also in Tuesday’s Daily, Overstock’s Tzero has patented a solution to integrate traditional and cryptocurrency trading systems, Morgan Creek founder Jason Williams offers his Lamborghini for bitcoin, and in Brazil, crypto investors are looking to buy vaults to safely store their digital assets. Also read: Epic Founder Addresses Fortnite Crypto Rumors, Robinhood Recruiting in London Binance Launches Trading for Three Stablecoin Pairs Binance, currently the largest crypto exchange by daily trading volume, has announced it’s adding new trading pairs that will allow users to trade stablecoins against one other. Starting from Tuesday, Jan. 8, the following pairs will be available to traders: PAX/TUSD, USDC/TUSD and USDC/PAX. In November, the digital asset trading platform rebranded its USDT market as a combined stablecoin market, introducing the symbol USDⓈ. The exchange explained this was done to support more trading pairs with different stablecoins offered as a base pair. Later Binance added to the new market pairs with the stablecoins paxos standard (PAX) and USD coin (USDC). Last year saw the arrival of several stablecoins that are now competing with the dollar-pegged tether (USDT). These include the two tokens that were approved by the New York State Department of Financial Services in September, gemini dollar (GUSD), and paxos standard (PAX), also backed one-to-one with U.S. fiat currency. Tzero to Integrate Traditional Trading Systems and Crypto Exchanges Security token trading platform Tzero, a subsidiary of Overstock, has secured a patent for a platform that allows integration between traditional trading systems and digital asset exchanges. Tzero’s Crypto Integration Platform is designed to serve as an interface between the two types of systems. According to the filing, the platform can host initial public offerings (IPOs) and offerings of securities registered with the U.S. Securities and Exchange Commission (SEC). It is also intended to be used to trade these securities in secondary market transactions. The “digital transactional items” mentioned in the patent represent tokens, securities, digital assets, digital shares, and cash equivalents. When receiving an order, the platform is expected to verify the availability and determine the best market price of the digital asset before a transaction is made. Online retail giant Overstock is a crypto-friendly company. Recently it announced it will cover part of its tax obligations to the U.S. state of Ohio using bitcoin. Ohio’s new payment portal, which was launched a couple of months ago, allows businesses to pay their taxes with bitcoin core (BTC) and bitcoin cash (BCH) via Bitpay. Morgan Creek Founder Wants Crypto for His Lambo Jason Williams, co-founder of Morgan Creek Digital Assets, recently tweeted that he is about “to do something that has never been done in crypto.” According to the post, Williams’s Lamborghini is up for sale and the owner wants to buy cryptocurrency with the money he gets for the car. “Offers in BTC accepted,” the entrepreneur noted as well. Williams has received a lot of comments and even offers for the Lambo. According to Monero’s lead developer Riccardo Spagni, the sale is a good move. “Huracans are awful investments. Unless it’s a Performante, then there’s a limited audience in the future. But seriously, better to get rid of it,” Spagni wrote. “Too many cars. Not enough BTC honestly,” Jason Williams said in response. Brazilians on the Lookout for Vaults to Store Bitcoin Safe storage should be a priority for any investor in possession of large amounts of digital cash. According to the local press, many Brazilians don’t feel that hard wallets and secure passwords provide enough protection. Local companies manufacturing and building physical vaults have registered a growing demand for their services from cryptocurrency owners, which has actually revived the industry. The Folha de São Paulo news outlet recently reported that some of the safes are part of quite sophisticated security systems. They are often installed behind reinforced armored doors and come with advanced features for biometric authorization such as palm scanners that can identify up to 5 million points on the hand of a person who’s trying to open the vault. What are your thoughts on today’s news tidbits? Tell us in the comments section. Images courtesy of Shutterstock, Jason Williams (Twitter). At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post The Daily: Binance Adds Stablecoin Pairs, Tzero Patents Integration Platform appeared first on Bitcoin News.
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Gemini Offers a Discount to Traders Causing Problems for Paxos and Other Stablecoins

Markets are kinder to those who enter the market earlier, with the late entrants having to play catch up. This steep curve can make it extremely hard to catch the leader in a sector. Companies try to employ varied tactics to overcome this disadvantage, and sometimes these things backfire. A fact that got highlighted recently when a stablecoin offered rebates to stimulate business interest only for traders to cash in on the opportunity and create problems for another coin, Paxos. How Did This Come About Crypto exchange Gemini decided to enter the crypto market with its own coin, last year, hoping to succeed on the back of the fact that the coin was backed by the US dollar. This would make it seem like a regulated and trustworthy option. Unfortunately, while the coin has grown considerably to a total capitalization of $90 million it is still more than 30 percent behind its next competitor, Paxos. In a move to bridge this gap, Gemini resorted to offering their coin to some over-the-counter [OTC] traders at a 2% discount. So What Is The Problem With That This discount means that each $1 GUSD token was purchased at t$.98. Since the whole allure of a stablecoin is that its value stays in equilibrium with the USD, some traders spotted an opportunity for making a quick profit. They bought the GUSD at the discounted price and then converted it to Paxos’ stable coin, PAX. This effectively meant that the discount was converted to a profit for these traders. What Happened Next? While not ideal for Gemini it was a nightmare for Paxos. Most exchanges have some sort of daily limit on withdrawals. to make a quick buck and circumvent this restriction, many false accounts were created. Still worse was the fact that in order to encash the coins the request needs to be via the original issuer. As traders had exchanged vast sums of GUSD to PAX there were huge requests for withdrawals at Paxos end. This was soon tracked and a quick investigation explained the plot. The CEO of Paxos, Chad Cascarilla explained, “Some customers began structuring withdrawals to get around them; they were creating accounts under other people’s names who were not the owners of the funds to try to withdraw more PAX than the $10k limit.” The firm promptly tightened its processes for withdrawals, adhering fastidiously to Wall Street’s KYC norms. The exchange then began investigating any suspected account and holding off on payments. This resulted in some backlash as some customers slammed them for causing them inconvenience for no fault of theirs. Most did not appreciate the fact that to redeem their PAX they were being questioned about the source of funds and the trading strategy involved. Some went on to accuse Paxos of deliberately delaying redemptions to preserve their market capitalization. How Did Paxos Respond To clear the air, the Paxos CEO, gave interviews to present his companies side of the story, which is that they are following procedure. “Every time a redemption comes in, and we’ve now processed $200 million, it goes through a compliance check.” Any anomaly or strange behavior is reported by the system which is then manually checked in detail Cascarilla further pointed out how it was not in the interest of his firm to stop or hassle customers, however, he says “To operate legally, there are certain customers we cannot take — in this case specifically, customers who are trying to circumvent AML/KYC rules. While understanding some innocents have been caught in the crossfire he happily points out “Every account we’ve closed has been connected to the Huobi incident. So Rebates Are The Baddies? Some commentators have been rather critical of Gemini’s approach and blame the whole saga on their plans for a discount. A market analyst from Themis Trading, Joe Saluzzi put it bluntly when he said “Sounds like Gemini was basically paying to get volume going in their stable coin. Reminds me of when BATS first started their exchange. They offered a pricing incentive to drive volume to their exchange and were willing to lose money to gain share.” Yet this is a common practice even in this niche market with even Paxos having offered rebates in the past. Having said that, Dave Weisberger, CEO of CoinRoutes, notes the circumstances where he says ”There’s not a lot of liquidity in Gemini dollar pairs so if you’re Gemini you are going to want to come up with solutions to increase liquidity.” This motivates the coin issuer to think outside the box but led them to forget an all-important lesson. He reminds all that “If you fail to understand that market makers are not your friend, and you give them free arbitrage, then they are going to take it.' While Gemini has declined to comment, it seems fairly straightforward with one company trying to gain a foothold in the market and inadvertently causing a lot of headache for another company's clients. However there seems to be no villainy, one hopes the purity of intent remains.
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Bitrue Keeps Its Promise and Will Be Listing 5 New XRP Based Pairs This Week

#XRPtheBase is a twitter hashtag that has gathered traction since Binance announced that it will be listing trading pairs with XRP as the base. The announcement was made on Christmas Eve and was welcomed as the best present the XRP community could receive from from Binance’s CEO, Changpeng Zhao. Bitrue Already Had Over a Dozen Trading Pairs Before the Binance Announcement Unbeknownst to many crypto traders, was that the Bitrue exchange already had several trading pairs with XRP as the base. XRP is already paired with Bitcoin (BTC), Tether (USDT), Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Gifto (GTO), Gemini Dollar (GUSD), Kyber Network (KNC), ChainLink (LINK), Litecoin (LTC), Paxos (PAX), QuarkChain (QKC), True USD (TUSD), WanChain (WAN), WaltonChain (WTC) and Ox (ZRX). The exchange’s CEO, Curis Wang, took to twitter to highlight that the exchange had considered XRP base pairing over 5 months ago. His tweet stated the following: 5 months ago, when we launched Bitrue we decided to be the pilot listing xrp as base token. I still remember many people said that was a joke, Bitrue was a joke. Till today, we have 13 XRP pairs already. I’m happy we made it all through! @BitrueOfficial#XRPthebase The full tweet can be found below. 5 months ago, when we launched Bitrue we decided to be the pilot listing xrp as base token. I still remember many people said that was a joke, Bitrue was a joke. Till today, we have 13 XRP pairs already. I’m happy we made it all through! @BitrueOfficial #XRPthebase https://t.co/C4XKe5BkLc — Curis Wang (@Curis_Wang) December 28, 2018 Bitrue’s Promise to Add 5 More XRP Based Pairs in the First Week of 2019 To note, is that Mr. Wang’s tweet was part of a retweet to emphasize that the Bitrue exchange was planning on adding 5 XRP trading pairs in the first week of 2019. It is with the above brief history that Bitrue will be adding the following XRP pairs by the end of this week. TRX / XRP XLM / XRP NEO / XRP GAS / XRP OMG / XRP VET and ADA Pairs Coming Soon The tweet making the announcement also added that the team at Bitrue will be working on adding XRP centered trading pairs with Cardano (ADA) and VeChainThor (VET). The full tweet making both announcements can be found below. As promised, we are adding 5 NEW $XRP-based pairs by end of the week! They are TRX, XLM, NEO, GAS and OMG! For other top voted pairs like #ADA and #VET, we will list those tokens first and add them in the next round, which will be pretty soon!https://t.co/i7RmZi2Lxh pic.twitter.com/0BYn3Fmook — Bitrue (@BitrueOfficial) January 2, 2019 XRP’s Slight Stagnation In the Markets as We Enter 2019 The addition of XRP as the base on Binance with the two trading pairs of Tron (TRX) and ZCoin (XZC) was made on the 24th of December after which the value of the digital asset rose from $0.37 to $0.44. This was an increment of 19% in a 24 hour period. However, the excitement around the Binance trading pairs soon cooled off and XRP is currently trading at  $0.365 as we complete the first week of 2019. Perhaps with the additional trading pairs on Bitrue, XRP’s trade volume will increase thus boosting its value. What are your thoughts on Bitrue adding 5 more XRP based trading pairs? Were you aware of the other XRP trading pairs on the exchange? Please let us know in the comment below.  Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you. The post Bitrue Keeps Its Promise and Will Be Listing 5 New XRP Based Pairs This Week appeared first on Ethereum World News.
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Billionaire Elon Musk Lauds Bitcoin As “Quite Brilliant,” Why Isn’t Tesla Going Crypto?

While Elon Musk has yet to formally delve into the Bitcoin space, he has long been a fabled member of the crypto community. Since finding his way to the headlines of the world’s media, the Tesla chief executive’s pro-innovation mindset has struck a chord with many enamored with cryptocurrencies. In fact, some say that Musk’s unsaid raison d’etre of bettering society at large, especially by amending the world’s most harrowing issues (climate change, confinement on Earth, financial inequality), lines up with the goals held by many cryptocurrency insiders. Thus, some have even argued that Musk could be Satoshi Nakamoto. Sahil Gupta, a former intern at Musk’s second multi-billion dollar enterprise SpaceX, once infamously claimed that Musk’s brief mentionings of cryptography, economics, the C++ computing language, along with the entrepreneur overarching vision scream Satoshi. The South African-Canadian entrepreneur has done his best to keep his mouth zipped regarding his candidacy for the Satoshi title, but that hasn’t stopped him from talking about cryptocurrencies. We had @elonmusk on the latest episode of @ARKInvest's podcast! He had a few things to say about Bitcoin. "Paper money is going away and cryptocurrency is a far better way to transfer value than pieces of paper." – Elon Muskhttps://t.co/U5qOnM7nBo — Yassine Elmandjra (@yassineARK) February 19, 2019 Bitcoin Is “Quite Brilliant” While the crypto market has remained in a depressed state, save for Monday’s jaw-dropping rally, stars have begun to descend on this industry. Weeks ago, NewsBTC reported that a mass of celebrities, including the Spice Girl’s Mel B, Johnny Depp, Madonna, and Lionel Messi, had some involvement in cryptocurrency. More recently, Jack Dorsey of both Twitter and Square took to Joe Rogan to claim that the native currency of the Internet is likely to be Bitcoin. Related Reading: Twitter CEO Loves Lightning on Bitcoin: is it the Future of Fast, Instant Payments? And just on Tuesday, Elon Musk, the most well-known Silicon Valley guru, took to the New York-based ARK Invest’s “FYI” Podcast to touch on Tesla’s plans, autonomy, other innovations, such as crypto. Per The Block, who compiled his comments regarding cryptocurrencies, Musk made his comments with explicitly bullish tones. After discussing Tesla’s most recent advancements, the hosts of the podcast, the CEO and an analyst at ARK, a disruptive innovation-centric investment group, took a brief aside. They asked Musk if he agrees with Dorsey’s recent comments on Bitcoin and cryptocurrencies at large. Interestingly, Musk responded with an answer, albeit somewhat cursory. He tacitly agreed, noting that the “Bitcoin structure was (is) quite brilliant,” adding that Ethereum and “maybe some of the others” have merit too. Musk did admit that he isn’t too enamored with Bitcoin’s Proof of Work (PoW) consensus mechanism, noting that it is energy intensive. Yet, he explained that fundamentally, crypto assets are great as they bypass currency controls, especially in nations embroiled in financial and political turmoil, like Venezuela. He added that cryptocurrencies are also a “far better way to transfer value than pieces of paper,” subsequently quipping that he’s sure of this “without a doubt.” In spite of all this, he made it clear that Tesla isn’t going to foray into the crypto space in any capacity, noting that it would be a good use of his firm’s resources to prop up an offering. Musk’s abrash comments quickly elicited responses from each and every corner of the crypto space. Matt Odell, a long-time pro-Bitcoin coder and industry personality, joked that the comments “confirmed” his bias that cryptocurrencies could oust banknotes. Changpeng “CZ” Zhao of Binance noted that eventually, “[Musk] will join the brotherhood,” adding that he is unequivocally sure that the businessman will take up a crypto mantle. CZ notably called on the Tesla founder to take up the Lightning Network Trust Chain torch last week, just days after Twitter’s Dorsey openly lauded Bitcoin in dozens of tweets. Crypto Is Better Than Banknotes? While Musk made notable acknowledgments in his brief appearance on ARK’s “FYI,” what stood out to many crypto investors was his thoughts on the dichotomy between banknotes & physical cash, and crypto assets, not centralized e-money. For a brief recap, Musk simply stated that he is unequivocally sure that crypto, whether it be Bitcoin, Ethereum, or otherwise, is a “far better” medium of exchange than pieces of paper. Shocking, right? This may be deemed hearsay by pundits of the legacy world, but the world is already adopting digital mediums of exchange. Per previous reports from this outlet, Arthur Hayes of BitMEX took to his company blog to claim that platforms like WeChat Pay and AliPay have already begun to take over China’s financial system. Who’s to say that cryptocurrencies, a decentralized counterpart to these systems that tout their own currencies, cannot have a similar impact on society at large. The fact of the matter is that these digital payments systems, whether decentralized or centralized, offer benefits that cash/plastic cannot. Case in point, payments on both Bitcoin and WeChat Pay are cheap, rapid, and relatively secure. But arguably, decentralized payment ecosystems, which are non-sovereign, private, immutable, and non-censorable, are even better than their centralized peers, which is likely what Musk was touching on. Featured Image from Shutterstock Billionaire Elon Musk Lauds Bitcoin As “Quite Brilliant,” Why Isn’t Tesla Going Crypto? was last modified: February 20th, 2019 by Nick ChongThe post Billionaire Elon Musk Lauds Bitcoin As “Quite Brilliant,” Why Isn’t Tesla Going Crypto? appeared first on NewsBTC.
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In the Daily: Elon Musk Talks Bitcoin, Shanghai’s Fudan University, Xdat Exchange

In this edition of The Daily we cover some largely supportive remarks the famous entrepreneur Elon Musk has made about Bitcoin, the latest academic institution to launch a blockchain R&D center, and a new offering from Malta-based exchange Xdat. Also Read: Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship Elon Musk Talks Bitcoin The founder of Tesla and Spacex, Elon Musk, is once again making headlines about crypto. He recently went on the Ark Invest podcast to discuss the future of autonomous driving technologies. Most of the half-hour interview focused on the strategy behind his electric car company but the topic of cryptocurrency eventually popped up in the last four minutes. Musk commented: “I think the Bitcoin structure is quite brilliant. There seems like there is some merit to Ethereum as well, and obviously others. But I’m not sure if it’s a good use of Tesla resources to get involved in cryptos … We’re really just trying to accelerate the advances of sustainable energy. One downside of Bitcoin is … computationally it’s quite energy intensive. There has to be some kind of constraint on the creation of crypto. It’s very energy intensive to create the incremental bitcoin at this point … It bypasses currency controls. Paper money is going away, and crypto is a far better way to transfer value than pieces of paper. That’s for sure.” Shanghai’s Fudan University Launches Research Center Shanghai’s Fudan University has become the latest academic institution to launch a blockchain R&D center. Founded in 1905, Fudan is one of the most prestigious and selective schools for higher learning in China. The Shanghai Blockchain Engineering Technology Research Center is tasked with carrying out basic research in the field, developing demo applications in collaboration with the broader industry, and training talent to serve Shanghai’s economic development. Last month the University of California, Berkeley announced the formation of its own blockchain-focused startup accelerator program, the Berkeley Blockchain Xcelerator. This program is meant to help aspiring entrepreneurs create high-value ventures in the blockchain space with industry guidance from Silicon Valley. Xdat Exchange Lists 18 Trading Pairs Xdat, a new Malta-based cryptocurrency trading exchange, has announced the listing of 18 trading pairs. These comprise ETH/BTC, BCH/BTC, EOS/BTC, ETC/BTC, XRP/BTC, DASH/BTC, LTC/BTC, BTC/ETH, BCH/ETH, EOS/ETH, ETC/ETH, XRP/ETH, DASH/ETH, LTC/ETH, BTC/TUSD, ETH/TUSD, BTC/EURO, and ETH/EURO. The company has further plans to add other pairs over time. The exchange is compliant with Maltese regulations for KYC and AML procedures and caters to both retail and institutional investors. Its fiat gateway allows users to deposit funds in 12 major currencies: USD, GBP, JPY, HKD, CHF, AUD, NOK, SEK, DKK, CZK, PLN, and HUF. This selection is meant to eliminate the need for involvement of a foreign bank for the supported options and allows users to work solely with Xdat’s bank. “Xdat is on a mission to address the key problems of existing exchanges … including lack of flow of new capital, lack of trust, no approach for mass adoption, and high fragmentation,” said CEO Prashanth Swaminathan. “Our aim is to bring crypto to all. To that end, we will be working closely with our community and using their support and feedback to make our interface more user-friendly and trading as streamlined as possible.” What do you think about today’s news tidbits? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com. The post In the Daily: Elon Musk Talks Bitcoin, Shanghai’s Fudan University, Xdat Exchange appeared first on Bitcoin News.
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Elon Musk Praises 'Brilliance' Of Bitcoin And Ethereum, But Clash With Tesla's Energy Stance

Main Street seems to be giving cryptocurrency a second look. Last week, Jamie Dimon and JPMorgan Chase & Co. (NYSE: JPM) announced an investment in JPM Coin, which will become the first digital token provided by a U.S. bank. This week, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk lent cryptocurrency additional validation. “Paper money is going away, and crypto is a far better way to transfer value than pieces ...Full story available on Benzinga.com
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Elon Musk Calls Bitcoin "Brilliant" | Here's Why He's Optimistic

What are your thoughts on this news? Are you optimistic or bearish? Feel free to leave a comment below! Thank you all so much for watching the video. If you enjoyed the video, please consider dropping a like and subscribing. Running into some trouble or questions? Feel free to leave them down in the comments below! ---------------------------------------------------------------------------------------------------------- Check out Yellow: https://www.youtube.com/channel/UC2u2FXKKyIFsNBr_MlpCMfA Interested in signing up for our newsletter? Click the link below! Link: https://www.nicholasmerten.com/newsletter-dash-report-1/ Looking to file your crypto taxes? Check out TaxBit! https://app.taxbit.com/invite/DataDash/ ---------------------------------------------------------------------------------------------------------- What are your thoughts on current markets? Are you optimistic or bearish? Feel free to leave a comment below! Thank you all so much for watching the video. If you enjoyed the video, please consider dropping a like and subscribing. Running into some trouble or questions? Feel free to leave them down in the comments below! *I WILL NEVER PURSUE PROJECTS THROUGH TELEGRAM OR OTHER SOCIAL MEDIA OUTLETS. CONTACT MY EMAIL LISTED BELOW FIRST AND THEN VERIFY MY IDENTITY THROUGH A VIDEO CALL BEFORE MOVING FORWARD. THERE ARE MANY SCAMMERS IN CRYPTO. EMAIL SPOOFING IS RAMPANT, SO VERIFY MY IDENTITY THROUGH VIDEO* For consulting, speaking, or other business inquiries, please feel free to reach me at contactdatadash@gmail.com Patreon: http://patreon.com/data_dash Telegram: Alerts | https://t.me/Data_Dash Discussion | https://t.me/datadash Discord: https://discord.gg/S7MtTcB Donate NANO: xrb_3y7qi1z5kcpgi9cnk4bctus155qntiy1cszfmeh9zg7eqqqjb9imebsqf33t BTC: 14DHXJa9CgeBPf6m7UeMKE9yzAYFKPW2nV ETH: 0xa34d3461ae04953489e9aa464689c022836751d0 Want to start trading cryptocurrencies? Sign up through this link to get $10 of free bitcoin with your first purchase of over $100 ↓↓↓ https://goo.gl/woCYL6 Want to start trading coins? My top choice is Binance. ↓↓↓ https://goo.gl/DZVYPn Want to trade OTC? Caleb & Brown is my personal favorite to get started. https://partners.calebandbrown.com/datadash Looking to buy physical gold or silver? Check out the link below: https://goldsilver.com/?aff=DD Disclaimer: Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.
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