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After a turbulent year Digitex Futures unveils plan to become a DAO

Digitex Futures made the headlines on several occasions this year, and not always for the right reasons. Recently, the commission-free Seychelles-based futures exchange with plans to overtake BitMEX announced ambitious plans of becoming a DAO, according to CEO Adam Todd. Don’t miss this surprise video update by @realAdamTodd where he explains that #DigitexFutures is converting into a #DAO! 💫 💫The #Exchange will be community owned and will benefit #DGTX holders & traders! Check it out: https://t.co/bgWJp4yul2 — Digitex (@DigitexFutures) June 17, 2019 What Is a DAO? A DAO, or a decentralized autonomous organization, is an organization that uses the blockchain to mitigate the need for a corporation or employee hierarchy. Instead, holders of a token in a DAO typically decide on matters of governance through voting via smart contract. Like Bitcoin, which removes the middleman in payments, a DAO is meant to do the same for any area of business which has repetitive functions, such as paying salaries and suppliers. A DAO behaves like a company with digitally enforced rules. Not many companies have managed to decentralize their organizations, yet, but smart contracts are seeing increasing adoption, especially for reducing repetitive tasks. For example, JPMorgan is planning to preprogram a myriad of back-office tasks using smart contracts. The announcement from Todd is a step forward in governance, but it also exposes the organization to additional risk should there be a vulnerability in the smart contracts or a breakdown in governance participation. The DAO hack was a learning moment about smart contract lifetimes, and how to bake software maintenance & upgrades into SCs. — Jeff Garzik (@jgarzik) April 9, 2017 A DAO, not the DAO If that acronym sounds familiar, it’s because “The DAO” was a disastrous hack caused by a loophole in a smart contract soon after Ethereum’s launch. An opportunistic miner was able to drain roughly $60 million from The DAO, which later by vote, resulted in Ethereum splitting from Ethereum Classic in 2016. Yet, the Digitex CEO seems unfazed by the potential security complications around DAOs. In his video update, he reassured the community that “times have moved on from then,” and that the technology is “pretty much bullet-proof.” Whether the market will react in the same way to these risks is another matter. The transition from corporation to DAO Ownership of Digitex Futures will be transferred to the community over the next five years, with Adam Todd relinquishing 80 percent of his equity ownership in Digitex Ltd to further decentralize governance by blockchain. On Oct. 1, 2019, Digitex will create one billion new tokens, the DigiDAO token (DGDAO). These tokens represent equity ownership in the exchange and will be locked into a smart contract and released on a daily basis to DGTX holders over the next five years. Unlike an STO, these tokens are not being sold but instead dealt out to DGTX holders in proportion to the number of tokens owned. The only caveat: holders must keep their DGTX in their account on the Digitex exchange. That said, there is no lock-up period and depositors can withdraw their tokens at any time. Impact of decentralization The Digitex community has continued to wait for the organization to fulfill its promise of actually launching an exchange. The transition to the DAO appears to add even more complexity to the already difficult task. By transferring all voting, governance, and ownership rights to the DGDAO token, the DGTX token will likely be a security in the sense that it entitles owners to the future cash flows of the exchange, but the decentralization of the project may insulate Digitex from litigation. Additionally, by encouraging traders to hold DGTX in their accounts over five years to accrue DAO tokens, the supply is consequently restricted, which should result in a higher value for the coin. As noted in the addendum on the Digitex website: “Demand for DGTX from investors who are attracted to this daily dividend will compete with demand from traders who must own DGTX to trade on the exchange’s futures and spot markets, creating increased competition for DGTX.” The Takeaway Competing in the highly competitive exchange market against incumbents such as BitMEX is an ordeal. Whether the company’s bet to transition to a DAO will reassure investors and help the company build its reputation is highly uncertain. The litmus test will be whether Digitex will finally be able to launch its exchange. The post After a turbulent year Digitex Futures unveils plan to become a DAO appeared first on CryptoSlate.
Cryptoslate

World’s Major Broker TP ICAP Expands to Bitcoin Futures

Coinspeaker World’s Major Broker TP ICAP Expands to Bitcoin FuturesA major international brokerage firm TP ICAP has just announced that they are expanding their services and will offer Bitcoin futures trading. TP ICAP is a global firm of professional intermediaries that operates in the world’s financial, energy and commodities markets. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.These actions are not as sudden as they might seem. About a year ago, TP ICAP formed a working group with the primary goal of examining how to approach cryptocurrencies. Now a year later, we see their plan on how to approach them. They are becoming one of the few firms in the business to offer Bitcoin futures trading. However, Duncan Trenholme, the project manager, feels that many companies will enter the Bitcoin futures market over the next year or two: “[Many institutions] are exploring how tokens can legitimately be traded or stored and I’d expect more projects to hit the market over the next year or two.”At the moment, TP ICAP is working with cash-settled futures contract that trades on a regulated market controlled by the CME Group.Struggle in the Brokerage BusinessApparently, the company has been struggling with their primary business. Last year, TP ICAP lost around 36% of its market value in a single day due to the financial crisis. Now they have gained back only 10% of it ever since the crisis. The revenue of the company was $2.2 billion in 2018, 3% more than in 2017.Now it looks like the company wants to test new grounds by entering the crypto market. This puts them in a sweet spot as the company becomes one of the few big players to offer crypto derivatives. Recently we saw Fidelity Investments entering the crypto-space. Also, Bakkt is probably the most anticipated platforms which has been delayed multiple times and now is expected to be available on July 22.The new project will be based in London and run by Simon Foster and Duncan Trenholme.TP ICAP plan is to add non-deliverable forwards (NDF) tied to Bitcoin. Also, they want to expand to Asia and the U.S.Moreover, they are interested in other cryptocurrencies and tokenized assets as well. The company is thinking about trading in the cryptocurrency market itself. World’s Major Broker TP ICAP Expands to Bitcoin Futures
Coinspeaker

Bloomberg: UK Interdealer Broker TP ICAP to Sell CME’s Bitcoin Futures

Bloomberg: UK Interdealer Broker TP ICAP to Sell CME’s Bitcoin Futures United Kingdom-based interdealer broker TP ICAP will sell bitcoin (BTC) financial derivatives, Bloomberg reports on June 17. Per the report, the ICAP unit of the firm now allows its customers to buy or sell the Chicago Mercantile Exchange’s (CME) bitcoin futures. In June, the […] Cet article Bloomberg: UK Interdealer Broker TP ICAP to Sell CME’s Bitcoin Futures est apparu en premier sur Bitcoin Central.
Bitcoin Central

Bitcoin Futures Volume is Just 33% of the Spot Volume in May, Reports JPMorgan Chase

Coinspeaker Bitcoin Futures Volume is Just 33% of the Spot Volume in May, Reports JPMorgan ChaseIt is evident that the Bitcoin industry has changed considerably since 2017. According to JPMorgan Chase (JPM), there is an increase in institutional interest as reported by Bloomberg on June 15. That publication quoted a report that was led by Nikolaos Panigirtzoglou, the managing director of global market strategy of the United States’ biggest bank.Researchers and experts examined recent phenomena surrounding crypto exchanges. Although the industry is growing, challenges have also come up. Bitcoin futures volumes have surged to record highs of around $12 billion in May. That represents a growth of 118% from the volumes recorded in April.JPMorgan estimated that after eliminating the faked volume, the actual spot Bitcoin volume on crypto exchanges was almost $36 billion in May. That means the futures share of spot volumes was just around 33%.JPMorgan explained that due to the surge in fake volume, the importance of Bitcoin futures has been understated. This understatement means that the market structure has most likely changed significantly since the last spike in Bitcoin prices in December 2017. According to JPM:“The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors”The InvestigationAs we published earlier, an investigation by asset manager Bitwise in March showed that 95% of reported Bitcoin trading volume is likely non-existent. CoinMarketCap reports almost $19 billion per day in Bitcoin trading volume. However, the real figure could be less than 33% of the reported amount, according to Bitwise.Bitwise analyzed many regulated exchanges in May using Coinbase Pro as its case study. The study aimed to reveal the nature of the trading patterns that appear trustworthy. Citing JPMorgan, Bloomberg notes that if just 5% of May’s $725 billion number is accurate, then the real volume of BTC trading last month was approximately $36 billion.On the other hand, the month of May became the best performing month on record for CME Group. The Bitcoin futures provider achieved an implied USD value surpassing $500 million. There exists a volume difference between trading on exchanges and volumes in bitcoin futures. The difference means that institutional investors are honest about crypto.Additionally, the end of June will see CBOE, the pioneer in futures provision, shut down its final contracts. These contracts are set for shutdown in line with a resolution made in March. Bakkt meanwhile said that it plans to start testing its futures offering in July.Bitcoin Futures Volume is Just 33% of the Spot Volume in May, Reports JPMorgan Chase
Coinspeaker

6th Anniversary of BTC Futures Trading, OKEx Enhanced Risk Management System for a Better "Future"

VALLETTA, Malta, June 17, 2019 /PRNewswire/ -- Since the launch of Perpetual Swap last year, OKEx has introduced an enhanced risk management system in response to the derivatives market risks triggered by extreme volatility in the past few months and achieved a significant result -- zero clawback since launching. The enhanced risk management system is then applied to OKEx's futures trading. The upgraded system comprises three major elements -- Mark Price -- introduced back in January Tiered Maintenance Margin Ratio (TMMR) System -- to avoid liquidation of large positions and its after-effect on market liquidity Forced Partial Liquidation Mode -- to eliminate the market impact caused by a large number of liquidated orders In a nutshell, the new risk management system has successfully struck a balance between the risks and users' interests. ...Full story available on Benzinga.com
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The Market Responds Nonchalant to CBOE BTC ETF Pull Out

Yesterday, 23 January, the US Securities and Exchange Commission released a two-page document revealing the temporary withdrawal of the proposed rule change by the Chicago Board Options Exchange (CBOE) BZX Exchange Inc. This proposed rule change was said to lay the groundwork for the long-anticipated VanEck/SolidX BTC ETF

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Today’s cryptocurrency market is young and volatile. Cryptocurrencies have no backing, as such their value is not attached to a physical asset in fact. Their prices are, by and large, speculative meaning they are highly dependable on news and people talking about them. In an effort to bring stability to the market, CBOE and CME, world’s largest derivatives exchanges, decided to introduce Bitcoin futures.

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XRP Spikes 10% on Ripple MoneyGram Partnership News

Big partnership announcements have been thin on the ground for many of the major crypto companies recently. That changed for Ripple a few hours ago when the firm announced a strategic partnership with one of the world’s largest money transfer companies, MoneyGram. XRP Climbs 15% in a Week Compared to bitcoin and litecoin, XRP has been asleep for the past two months. Even Ethereum has outperformed it in terms of percentage gains. That all changed a few hours ago when XRP awoke from its range bound channel at $0.42 and surged almost 10% to hit an intraday high just over $0.46. A minor pullback followed in the hours after the announcement but XRP is still one of the day’s top performers. XRP price 1 hour candles – Tradingview.com XRP 00 has climbed almost 15% over the past week as it was trading just under $0.40 this time last Tuesday. Daily volume has just topped $2 billion as XRP market capitalization approaches $20 billion. The gap to ETH in second place is still $10 billion in terms of market cap, however. It has been one of the best weeks for XRP in terms of gains as the Ripple token has only made 27% since the beginning of the year. Big Partnership Driving FOMO The San Francisco based firm announced the partnership on its company blog late last night. It stated that the initial partnership will last two years during which Ripple will become the key partner for MoneyGram’s cross border payments and foreign exchange settlements. A substantial capital commitment of $50 million has also been pledged by the blockchain company enabling MoneyGram to draw it over a two year period in exchange for equity. Ripple’s xRapid system will be deployed for the partnership. It facilitates on-demand liquidity enabling instant transactions by reducing reliance on pre-funding. The XRP token will be used as the ‘real-time bridge’ between different currencies. Ripple CEO, Brad Garlinghouse, stated; This strategic partnership will enable MoneyGram to greatly improve its operations and enable millions of people around the world to benefit from its improved efficiency. This is a huge milestone in helping to transform cross-border payments and I look forward to a long-term, very strategic partnership between our companies. MoneyGram has a $600 billion global remittance market supporting multiple currencies in more than 200 countries. Traditional forex markets requiring advance purchases are currently used for international transfers. The partnership and leverage of Ripple’s native token are expected to reduce costs and increase transfer speeds for the firm. Alex Holmes, MoneyGram Chairman and CEO, added; Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management. Will XRP hit $0.50 this week? Add your comments below. Images via Shutterstock, Tradingview.com The post XRP Spikes 10% on Ripple MoneyGram Partnership News appeared first on Bitcoinist.com.
Bitcoinist

XRP Gains 5% as Ripple Forms Strategic Partnership with MoneyGram; Last Resorts for Both Firms?

Ripple bought a share issue from MoneyGram worth $30 million at $4.10 per share to acquire 8-10% of the company. MoneyGram would also have an option of infusing another $20 million over the next two years. A strategic partnership will now ensue where Ripple will become the critical service provider for cross-border payment and foreign exchange settlement using digital assets. The digital asset they will be leveraging is Ripple, using Ripple’s xRapid Product. This partnership is a massive step towards the vision with which Ripple began, and investors put money is XRP. Also Read: Ripple Fathers’ Day Gift Propels It Past $0.4400 as Bulls Return Until now, MoneyGram has had to use banking services to provide settlements for payments they initiate. Due to the difference in time of settling payments, MoneyGram has to take loans to increase the required liquidity. However, by deploying xRapid, they will now be able to leverage XRP’s liquidity to provide cheaper and faster settlements. MoneyGram Chairman and CEO, Alex Holmes noted, “Through Ripple’s xRapid product, we will have the ability to instantly settle funds from US dollars to destination currencies on a 24/7 basis, which has the potential to revolutionize our operations and dramatically streamline our global liquidity management.” MoneyGram reported a net loss of $24 million in 2018 compared to a net loss of $29.8 million for the fourth quarter of 2017. The money transmitting service provider has been working towards developing, and 2019 will be part of the roadmap. Hence, the success of this strategic partnership is crucial for MoneyGram. Also Read: Bitcoin Vs Facebook Coin: Should Bitcoin Hodlers Care About Facebook Coin? Currently, MoneyGram works independently by leveraging money from banks. Ripple CEO Brad Garlinghouse told the media,  “This will eliminate the need to deploy foreign bank accounts. That’s why MoneyGram has negative working capital. It will help customers and also smooth out their treasury operations,” XRP/USD 4-Hour Chart on Bitstamp (TradingView) Moreover, while XRP recorded gains around 5%, it rose from $0.43 to a reach high at $0.46. Notably, a partnership like this back in 2016 or 2017 would have likely propelled the price by 30%. This can be attributed to an apparent decrease in the use case for MoneyGram itself. Digital payment is quickly becoming more accessible than ever with major firms working on implementing or integrating digital currencies on their respective platforms. Facebook is the most prominent example of it. Do you think MoneyGram and Ripple will be able to increase their volume and user base in the current environment? Please share your views with us.  The post XRP Gains 5% as Ripple Forms Strategic Partnership with MoneyGram; Last Resorts for Both Firms? appeared first on Coingape.
CoinGape

Ripple Partners MoneyGram to Enhance Cross-border Payments with XRP

Ripple has secured another major partnership with international money transfer company MoneyGram. This will allow the company to use Ripple’s native token XRP to provide liquidity for international payments to MoneyGram customers. This is in a bid to enhance the speed and efficiency of the payment system that MoneyGram operates. In an interview with Fortune on the partnership, Ripple CEO Brad Garlinghouse said: “This will eliminate the need to deploy foreign bank accounts. That’s why MoneyGram has negative working capital. It will help customers and also smooth out their treasury operations.” The partnership also gives Ripple an 8% to 10% stake in MoneyGram by paying $4.10 per share. This, however, does not give Ripple a voice in the dealings of MoneyGram for now as part of the agreement. MoneyGram, on the other hand, will have the opportunity of reviving its financial standing from Ripple’s investment which it direly needs after its share price crashed significantly.  It will also increase the efficiency of the payment platform, the management said. “We are very pleased with the terms of the Ripple investment which supports the Company with permanent capital and additional liquidity,” Larry Angelilli, chief financial officer of MoneyGram, said in a statement. “This partnership also provides MoneyGram with the opportunity to improve operating efficiencies and increase earnings and free cash flow,” Larry Angelilli, the chief financial officer of MoneyGram said. Ripple is the leader in remittance services as far as the blockchain industry is concerned. Its xRapid is second to none in terms of transaction efficiency and speed. With the new partnership, XRP which will be used for liquidity will be exposed to MoneyGram’s customers in over 200 countries globally. MoneyGram is the second largest provider of money transfer services in the world and while partnering with Ripple will ensure better service delivery to its customers, it is also a huge breakthrough for Ripple which has been looking to expand its reach further into the world. With hundreds of clients using Ripple’s payment platform, the company has grown significantly thus improving the international remittance settlement market by improving customer experience in conventional financial institutions. The post Ripple Partners MoneyGram to Enhance Cross-border Payments with XRP appeared first on ZyCrypto.
ZyCrypto

Ripple (XRP) enters key partnership with MoneyGram; invests $30 million

Ripple (XRP) enters key partnership with MoneyGram; invests $30 million - CryptoNinjas MoneyGram, a global money transfer company, announced today it has entered into a strategic agreement with Ripple (XRP), the provider of enterprise blockchain solutions for cross-border payments. The deal will enable MoneyGram to utilize Ripple’s xRapid product, leveraging ripples (XRP) in foreign exchange settlement as part of MoneyGram’s global payment process With an initial term […] Ripple (XRP) enters key partnership with MoneyGram; invests $30 million - CryptoNinjas
CryptoNinjas

Ripple Announces Game-Changing Partnership With MoneyGram

By CCN Markets: Ripple announced a partnership with money transfer giant MoneyGram today. Two Year Exclusive Agreement, Ripple and MoneyGram According to Ripple Labs, a two-year partnership has been struck with MoneyGram which makes Ripple its exclusive digital assets partner. The purview of Ripple’s use case here might be more limited than expected. It depends on how many of the transactions are sent and received using Ripple’s technology and how much they’re worth. Whatever the case, the partnership doesn’t, for example, mean that you’ll be able to buy and sell XRP at any MoneyGram location. Something along those lines would The post Ripple Announces Game-Changing Partnership With MoneyGram appeared first on CCN Markets
CCN
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