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Chinese Web Firm Meitu Buys $10M More in Bitcoin

5 years 6 months ago

Chinese app developer Meitu said Thursday it purchased 175.6 bitcoin for $10 million, bringing its total holdings of the cryptocurrency to over 940 coins.

  • The Hong Kong Stock Exchange-listed company has invested $100 million in bitcoin and ether positions since adopting a “cryptocurrency investment plan” in early March.
  • The company is part of a broader trend of publicly traded firms diversifying their cash treasury with bitcoin during the coronavirus pandemic.
  • Notably, Meitu, which also owns ETH, said it is buying crypto to prep for a “foray into the blockchain industry.”
  • Meitu held 31,000 ETH and over 940 BTC Thursday. It has invested roughly the same amount in both cryptos, though the ETH position, at nearly $64 million, was worth more at press time.
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Market Wrap: Bitcoin Near $58K, Reverses Two-Day Losses Despite Lower Trading Volume

5 years 6 months ago
  • Bitcoin (BTC) trading around $57,775.92 as of 20:00 UTC (4 p.m. ET). Climbing 2.86% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $55,639.58-$58,179.66 (CoinDesk 20)
  • BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.

After two days of losses, bitcoin ended Thursday in the green after markets closed in the U.S.

The gains came amid new signs of growing mainstream adoption of bitcoin and other cryptocurrencies. 

State Street, the second-oldest bank in the U.S. with $3.1 trillion in assets under management, announced it is providing the infrastructure for a new bank-grade trading platform for digital assets set to go live mid-year – and that it might eventually use the system itself.

Related: Coinbase Joins DeFi Alliance Ahead of Public Listing

Also, BNY Mellon, the world’s largest financial custodian, would be the service provider for a proposed bitcoin exchange-traded fund (ETF) offered by First Trust Advisors and Anthony Scaramucci’s SkyBridge Capital.

But spot trading volume has not been able to match the rising prices, continuing to drop Thursday on the eight U.S.-focused crypto exchanges tracked by CoinDesk.

Trading volume has been low for bitcoin since the beginning of April, while in March, according to CryptoCompare’s monthly report, the volume on top spot exchanges increased 5.9% from February levels to $2.5 trillion.

Ether and altcoins
  • Ether (ETH) trading around $2,058.73 as of 20:00 UTC (4 p.m. ET). Climbing 3.87% over the previous 24 hours.
  • Ether’s 24-hour range: $1,950.89-$2,076.81 (CoinDesk 20)
  • Ether trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.

While ether’s been trading mostly above $2,000 since it peaked above $2,100 in early April, an analyst argued ether’s latest bull run was supported by a more scant demand from buyers compared with bitcoin.

Related: Crypto Options ‘Ponzi Scheme’ Operator, Firm Ordered to Pay $32M

Philip Gradwell, chief economist at Chainalysis, said on CoinDesk TV’s “First Mover” show that “relatively little” ether was bought at prices above $1,850 and even less was bought at $2,000 or above.

Read More: Ether’s Record Run Came With Less Support Than Bitcoin’s, Blockchain Analysis Shows

“The persistence of a small, but very bullish, cohort of ether buyers supports my concern that the highest ether prices tend to have a narrow base of support, at least compared to bitcoin,” Gradwell wrote in his weekly newsletter.

Other digital assets on the CoinDesk 20 are mostly higher Thursday. Notable winners as of 20:00 UTC (4:00 p.m. ET): 

Notable loser:

Other markets

Equities:

  • Asia’s Nikkei 225 closed lower by 0.073%.
  • The FTSE 100 in Europe was up by 0.83%.
  • The S&P 500 in the United States closed in the green 0.42%.

Commodities:

  • Crude oil (WTI): -0.05% to $59.74/barrel.
  • Gold: +1.11% to $1755.83/ounce.

Treasurys:

  • The 10-year U.S. Treasury bond yield dipped to 1.636%.
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Ether’s Record Run Came With Less Support Than Bitcoin’s, Blockchain Analysis Shows

5 years 6 months ago

Compared with bitcoin’s (BTC) rally to a record price above $61,000 in March, ether’s latest bull run to an all-time high over $2,100 was supported by scantier demand from buyers, according to a top blockchain-data analyst. 

Philip Gradwell, chief economist at Chainalysis, said on CoinDesk TV’s “First Mover” show that “relatively little” ether (ETH) was bought at prices above $1,850 and even less was bought at $2,000 or above.

“The reason why this is important is because the price that people are willing to buy and hold at tells us the level of demand that there is at that price level,” Gradwell said. “So not a huge amount of demand at that $2,000 price.”

Related: Coinbase Joins DeFi Alliance Ahead of Public Listing

As of April 5, blockchain data showed there was significant ether accumulation at prices around $1,800, Gradwell wrote this week in a newsletter. That price level is likely to provide strong support because the cost of acquisition indicates historical demand for a cryptocurrency at different price levels. The analysis assumes that the buyers are unlikely to sell their crypto asset at prices below their cost of acquisition.

Only about 700,000 ETH were acquired at or above $1,850, costing around $1.4 billion on April 5, three days after ether logged a new all-time high price, Gradwell wrote. By contrast, on March 29 – two weeks after bitcoin’s price peaked – 238,000 BTC costing about $14 billion were acquired at or above $57,000.

The latest “all-time high [ether] price of $2,151 was some way above a large level of support, and suggests that the peak was driven by a relatively small amount of demand,” Gradwell wrote. “This is in contrast to bitcoin, which had greater prior demand across high price levels.”

The chart below, from Gradwell’s newsletter on April 1, also shows that 0.1 million bitcoin were acquired at prices higher than the spot price on March 29:

The human bias

Related: Crypto Options ‘Ponzi Scheme’ Operator, Firm Ordered to Pay $32M

The exercise highlights the limits of using blockchain data to analyze market movements: While the data can offer extra transparency, helping investors and traders understand where cryptocurrency is moving on the networks, the data can also be misleading, relying on humans for the interpretation as well as assumptions about investor psychology. .

Gradwell said on CoinDesk TV that his analysis included some potential “downward biases,” which could skew ether’s supporting price level on the lower end.

The analysis didn’t capture the prices of sales and trades made on centralized exchanges. 

But Gradwell argued that with the increased shift of ether trading to decentralized finance (DeFi), which is trackable on the blockchain, he is “not worried about such downward bias.”

At the same time, Gradwell’s analysis also flattens the cost curve of entities that acquired ether at different prices, which may skew the supporting price level lower.

“Large entities, such as DeFi contracts, tend to hold lots of ETH acquired at both low and high costs,” he wrote in the newsletter. “For example, 7.4 million ETH with an average cost of acquisition of $1,818 is held in the wrapped ether contracts.”

On the upward bias side, CoinDesk’s Lawrence Lewitinn said on the CoinDesk TV show that Gradwell’s analysis is based on an assumption that people would not sell their ether at a loss. If ether holders are willing to sell their ether at a loss, it means that the $1,800 supporting level may be less strong than expected.

Gradwell said a majority of investors who bought ether at its peak price in 2018 sold their ether at a loss, while more bitcoin holders at the time continued to hold their bitcoin throughout the bear market.

“The persistence of a small, but very bullish, cohort of ether buyers supports my concern that the highest ether prices tend to have a narrow base of support, at least compared to bitcoin,” Gradwell wrote.

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Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

5 years 6 months ago

Online brokerage app Robinhood said on Thursday that 9.5 million customers traded cryptocurrencies in Q1, up from 1.7 million in Q4.

  • In a blog post titled “How Crypto Fits Into Robinhood’s Mission,” the company also said its crypto team has more than tripled in number this year and continues to increase.
  • Robinhood Crypto offers seven tradable coins: bitcoin (BTC), bitcoin cash (BCH), bitcoin sv (BSV), dogecoin (DOGE), ethereum (ETH), ethereum classic (ETC) and litecoin (LTC). 
  • The millennial-friendly investment platform has reportedly confidentially filed for an initial public offering that would include a listing on the Nasdaq.

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Meet the ‘Meme Manager’ Bringing the Legacy Web Into NFTs

5 years 6 months ago

Ben Lashes wants to represent your cat. Or he probably would if your feline companion has gone viral on the web – like Nyan, Grumpy and Keyboard. For over a decade, Lashes has run a meme management business to help creators print money from the happy accident that is going viral. And, of course, he’s getting into NFTs.

Non-fungible tokens (NFTs) are the latest, buzziest galaxy of the cryptoverse. These unique and digitally signed assets provide a way to make the things that appear online scarce, and therefore valuable. Already topping some $250 million (at last count) in represented value, NFTs could find use for anything from art to mortgages, and event tickets to in-game goods.

NFT technology has found particular use with memes. Beginning with the tokenization and sale of Nyan Cat in late February, a rash of meme creators has looked to monetize their work. An NFT of Overly Attached Girlfriend recently sold for $411,000 while one of Bad Luck Brian brought in $36,000. There have been dozens of others, with many more “drops” planned.

Related: Coinbase Joins DeFi Alliance Ahead of Public Listing

It just so happens that most of those creators mentioned are Lashes’ clients. Thought to be the world’s first “meme agent,” Lashes has worked with the artists behind some of the internet’s most recognizable image macros. This includes: Doge, Success Kid, Scumbag Steve, Ermagherd, the Ridiculously Photogenic Guy and others, he said.

He works to build brands around these icons, look for new product opportunities and protect the artists’ intellectual property (IP). NFTs were a no-brainer. “We work to make sure we keep it standing and keep it cool. That’s always the number one rule. Keeping it cool,” he said. 

See also: Marc Hochstein – How Bananas and Mortgages Can Explain the NFT Craze

In his early-20s, Lashes fronted a band called The Lashes, which was signed to Columbia and Lookout! Records. Tired of an incessant touring schedule, he took a job at an independent music distributor, where he learned the basic skills to manage talent. 

Related: Crypto Options ‘Ponzi Scheme’ Operator, Firm Ordered to Pay $32M

When a family friend’s video from 1984 of a cat playing a keyboard started going viral on- and offline, Lashes’ stepped up to manage publicity and commercial opportunities for the meme. “I started managing Keyboard Cat like I would any aspiring musician,” Lashes said. “Being a pop culture fanatic, I realized this was the future of intellectual property.”

There were plush dolls, television appearances and T-shirt deals. But it didn’t become a full-time job for Lashes until he signed Nyan Cat. “I was obsessed,” Lashes said, explaining how he tracked down Chris Torres, the artist behind the galaxy-bending rainbow cat. With two memes to manage, he relocated to Los Angeles from Washington. From there, Lashes’ reputation and “roster” only expanded. 

‘X factor’

“It was in January when I first started seeing NFTs on my radar,” Lashes said, recalling how HashMasks infiltrated his Twitter feed. “I thought at the beginning it would potentially be a cool place for memes to exist.” As it happens, one of Lashes’ clients had the same idea. Nyan Cat creator Torres had already been in discussions with Foundation, a curated NFT marketplace and where he minted the seminal meme token.

With one foot in the door, Lashes began working more closely with the Foundation team to bring the rest of his clientele into Web 3.0. It hasn’t been exactly difficult to convince them. NFTs are reaping rewards for any artist who can capture a crowd. Torres, for instance, was the first artist on Foundation to break $1 million in sales. 

It’s the difference between art and commerce.

“With memes, they already locked the key piece of entertainment,” Lashes said. “There’s an ‘X factor’ with art or certain things in the world that when people see it, it evokes a pure reaction that people want to share.” Now, with blockchain, people can own something unique related to these objects that are widely cherished. 

But Lashes doesn’t see NFTs as revolutionary. He’s been making money off of this inexplicable “X factor,” for years. He helped sell more than 1 million Grumpy Cat plush dolls. More than 2 million Grumpy Cat books. Aubrey Plaza is voicing Grumpy Cat in a new animated series. 

“[NFTs are] just a new way for us to expand the footprint of the meme and get it more legitimized as art,” Lashes said. “Creating revenue and monetizing memes isn’t exactly new. Protecting them isn’t really new. We all have copyrights and property licencing in order to protect the IP.”

That’s why Lashes doesn’t think it’s contradictory to attempt to make one NFT to represent the millions of variations of a particular meme that exist online. “We never tried to stop anyone from creating memes. It’s the difference between art and commerce. Once you put it on a T-shirt, that’s overstepping the boundaries.”

See also: Daniel Kuhn – The Problem of Authenticity in NFT Art

Over the next two weeks, auctions will open for The Ridiculously Photogenic Guy, Success Kid and Ermagherd. David After Dentist and Clarinet Boy will follow. By then, almost all of Lashes’ clients will have minted their attempts to convert the emotional capital earned in the early consumer web into cryptographic success.  

Lashes said he has no doubt the artists will make a lot of money from their auctions, despite the feeling in some quarters that NFT fatigue is setting in – a premise he rejected.  

“As far as my clients go, any auction that ends with a sale is a success, no matter the size. This is such new ground being broken, and everyone is appreciative that their works are being collected and respected,” he said. 

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BOJ Wants to Set ‘Common Rules’ on CBDCs With Major Central Banks: Report

5 years 6 months ago

A Bank of Japan (BOJ) official said on Thursday there is scope to lay out “common rules” around central bank digital currencies (CBDCs) with the world’s seven major central banks, according to a Reuters report.

  • A set of common rules would lay the groundwork for efficient cross-border payments, said Kazushige Kamiyama, head of the BOJ’s payments and settlement department.
  • The BOJ official said CBDCs play differing roles for advanced nations with a robust banking system and emerging economies that can use digital currencies to make up for shortfalls in their financial infrastructure.
  • “It’s, therefore, better to come up with common rules among countries with similar economic structures,” Kamiyama told Reuters in an interview. “As such, it’s desirable for the BOJ to discuss common rules with the six other major central banks.
  • On Monday, the BOJ kicked off the first phase of experimenting with CBDCs, having made the necessary preparations in the first quarter.
  • The seven major central banks mentioned by the BOJ official include the U.S. Federal Reserve and the European Central Bank.

Read more: BOJ Starts Central Bank Digital Currency Experiments

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Bank of Russia Plans Prototype for Its Digital Ruble Design in December

5 years 6 months ago

The Bank of Russia presented a new concept for the digital ruble, a central bank digital currency the regulator has been contemplating since late last year, at a press conference on Thursday.

A prototype of the digital ruble will be created by this December, said Bank of Russia First Deputy Governor Olga Skorobogatova. The regulator also published a fresh report on the current state and future plans for the project.

The digital ruble will live in a hybrid technological platform combining distributed ledger technology (DLT) and centralized control by the Bank of Russia. The regulator hasn’t picked any particular DLT platform yet, Skorobogatova said, adding that the Bank of Russia will likely use open-source code to build its own proprietary product. 

Related: Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

In 2022, the Bank of Russia will draft the necessary regulatory norms for integrating its version of a central bank digital currency (CBDC) into Russia’s financial system, as well as pilot the prototype with banks and other financial institutions, according to the report.

“We’ve been looking at many projects, and many would like to say they have a ready-to-use product, but [they don’t] work for the digital ruble,” Skorobogatova said.

One thing is clear: The Bank of Russia wants smart contracts on its platform to allow users to program settlement of their transactions based on certain conditions, according to the report.   

The updated CBDC concept, following the first analytical report published in October, is based on feedback the Bank of Russia received over the autumn and winter of 2020. Most significantly, the regulator chose to give commercial banks a more important place in the CBDC architecture. 

Role of banks

Related: Meet the ‘Meme Manager’ Bringing the Legacy Web Into NFTs

In a two-tier model similar to the concept of the digital yuan, the Bank of Russia will open digital wallets for commercial banks and give them digital rubles in exchange for the money they keep on their corresponding accounts with the regulator. 

The banks, in turn, will open wallets for their clients. Bank of Russia will provide its own platform for the digital ruble, which the banks will be able to build into their own digital banking apps, the report says. 

Unlike bank deposits, digital ruble accounts will not earn interest but there is a security bonus: If a bank goes bankrupt, all digital ruble accounts it opened will still be available to users via other financial institutions participating in the network, the report says. 

Read also: Bank of Russia Chair: Digital Ruble Is No Threat to Banks

Another notable point is that person-to-person money transfers in digital rubles will be free of commissions while the payments to vendors of goods and services will incur commission fees. The rules and tariffs will be established by the Bank of Russia, Skorobogatova said.  

Previously, the central bank considered a more centralized version of the digital ruble, where the regulator would be managing the entire system itself. That version worried banks that thought they would have to compete against the regulator for people’s deposits. After consultations, the Bank of Russia reconsidered the role of banks in the project.

Offline goals

The Bank of Russia is determined to make digital ruble payments available offline. Although, Skorobogatova claimed, there are currently no known technologies in the world that could support an offline mode for a project like the digital ruble, the Bank of Russia believes a way can be found.

For offline transactions, users will need to open a second digital wallet on their mobile devices and transfer digital rubles from their online wallet to the offline one. Users will be able to transfer funds offline between their devices using technologies like Bluetooth and near-field communication (NFC), the report said. 

The Bank of Russia is also planning to allow the restoration of lost funds in offline wallets in case the device gets lost. It’s not yet clear how such a feature for the CBDC will be implemented technologically. 

Financial institutions that sent their feedback on the digital ruble concept to the Bank of Russia also supported the idea of an offline mode, Skorobogatova said. However, considering the risks of such a novel idea, the respondents suggested limiting offline transactions in size and time of execution.

Read also: Digital Ruble Can Help Track Government Spending, Bank of Russia Says

One of the key risks of the digital ruble that concerned the banks is a potential outflow of liquidity from banks if people start pulling their money from bank accounts and putting them into digital ruble wallets. The Bank of Russia might need to limit the size of such operations to prevent a shock for the market, said Deputy Chairman Alexei Zabotkin during the press conference. 

Skorobogatova said the digital ruble is a “mega-project” for Russia, and the Bank of Russia believes that now is the right time to start the project. The final decision on when the digital ruble will be launched, however, will be made after the piloting work is done.

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Kava Labs Launches Protocol Upgrade With Eye on Institutional DeFi Lending

5 years 6 months ago

Decentralized finance (DeFi) firm Kava Labs is offering a protocol upgrade dubbed “Kava 5” that gives users of apps built on Kava access to new features. 

Kava Labs said Thursday the upgrade to its infrastructure, built on the Cosmos SDK, means there are a number of performance improvements for users, allowing them to borrow against multiple cryptocurrency assets and earn staking rewards.

The move comes at a time when DeFi is finding its legs on blockchains beyond its traditional home, Ethereum.

Related: Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

“This upgrade will finalize the transition of Kava as a single application blockchain to an industry-leading DeFi platform complete with interoperable cross-chain tooling, secure price feeds and enterprise-grade reliability that financial institutions can trust,” Kava Labs CEO Brian Kerr told CoinDesk.

Additionally, Kerr told CoinDesk the upgrade will also complete the Hard protocol, the first cross-chain money market built on Kava’s platform that offers lending, borrowing and yield on cryptocurrencies such as bitcoin, XRP and BNB.

The upgrade is aimed squarely at institutional investors and corporate treasuries, according to documents shared with CoinDesk, touting the ability for firms to get 25% APY on their bitcoin without counterparty risk. While the risk of traditional players not fulfilling their lending obligations is obviated, it should be noted that smart-contract risk and other factors certainly remain in play.

“Convincing the institutions that hold Bitcoin to explore DeFi options will be a tall order,” Kava Labs admitted in a statement.

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Kraken’s First Brink Grant Goes to Bitcoin Rust Developer

5 years 6 months ago

The first grant from Kraken’s $150,000 donation to the Bitcoin development non-profit organization Brink will fund a developer who is coding tools to build Bitcoin software in the Rust programming language.

Alekos Filini will receive an undisclosed amount for the next year to continue his work on Bitcoin software built using the Rust language, specifically for working on the Bitcoin Developer Kit. This programming language is the building block for one implementation of the popular Bitcoin open-source wallet Electrum, as well as a Rust Lightning Network integration.

This grant and others like it have grown in popularity over the last year and have become an integral piece to funding Bitcoin’s open-source protocol and softwares, whose developers have historically relied on donations or done work for free.

Related: Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

“I’m incredibly grateful to Brink and Kraken for what they are doing,” Alekos Filini told CoinDesk. “I know there are a lot of really smart people out there that deserve funding for their open-source projects, so the fact that they’ve seen what we’ve built with BDK over the past year and ultimately decided to award me this grant feels awesome for me personally and for the whole team as well.”

“We’re absolutely delighted to be partnering with Kraken to support Alekos’s work,” said John Newbery, founder and director of Brink, said in a press release. “Kraken is one of the most recognized and respected brands in the Bitcoin ecosystem, so we’re very excited that they’re supporting the open-source developer community.”

Filini will use the Bitcoin developer grant to work on the Bitcoin Dev Kit, which includes tools and libraries for developers building applications in Rust. Among a few other Rust projects, like a simple command-line wallet for teams to test new projects, Filini is also working on a Tor daemon that developers can be plug into mobile and desktop wallets to bolster privacy.

Kraken said in its post that it intends to pair the Bitcoin Dev Kit with a Lightning Dev Kit to offer “a complete suite of tools to build robust on-chain and Lightning wallets in Rust.”

Related: Meet the ‘Meme Manager’ Bringing the Legacy Web Into NFTs

Kraken told CoinDesk in December that it plans to integrate the Lightning Network – a tech stack atop Bitcoin which facilitates faster, cheaper transactions – this year.

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Audius Brings NFT Galleries to EDM-Heavy Streaming Service

5 years 6 months ago

Audius, a decentralized music streaming service with big user numbers for a Web 3.0 project, has launched a non-fungible token (NFT) showcase feature for its resident artists.

Disclosed to CoinDesk Thursday, the new feature lets artists showcase their NFT merch in a consolidated gallery, making it easy for diehard fans to peruse. The move comes at a time when acts like Kings of Leon and others are rolling out increasingly lavish collectibles for their superfans and the crypto-rich.

To enable the gallery, a user on the site has to stake 100 of the project’s native AUDIO tokens.

Related: Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

The service marks an ever-so-slight departure from Audius’ strategy of playing to a broad audience without banking on crypto. Though it lives atop the Ethereum blockchain as a token-governed network, its founders and backers have found success, and adoption, by keeping the message on music found nowhere else.

Nearly 160,000 listeners logged into Audius Wednesday to stream EDM mixes and underground rap tracks uploaded by the artists themselves. The platform eschews big labels but posts big numbers: 4.5 million unique users this month, according to on-chain data.

But founders told CoinDesk the new function should appeal to nocoiners. 

“These are people that have no idea what’s going on from crypto perspective, but if you add in your NFTs as an artist to your artist profile, now all of a sudden your non-crypto fans can see this art, they can see these collectibles, and they can even potentially bid on them,” said Chief Product Officer Forrest Browning.

Related: Meet the ‘Meme Manager’ Bringing the Legacy Web Into NFTs

He said Audius Collectibles does not intend to act as an NFT bidding platform. Instead, it aggregates NFTs stored on SuperRare, Zora, Catalog, Foundation, OpenSea, Rarible and KnownOrigin. Artists sign transactions with their wallets to prove they own the work, but no gas is involved as the NFT never moves wallets.

Browning and CEO Roneil Rumburg said artists were asking for a way to show off their NFTs, in part because the buzzy digital collectibles offer them a potential revenue source at a time when gigs are hard to come by.

“A lot of our artists right now, for good reason, are interested in NFTs. They’re making money at a time when they desperately need money,” Rumburg said.

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BNY Mellon Would Be Service Provider for First Trust, SkyBridge’s Proposed Bitcoin ETF

5 years 6 months ago

BNY Mellon, the world’s largest custodian, would be the service provider for a proposed bitcoin exchange-traded fund (ETF) that would be offered by First Trust Advisors and SkyBridge Capital.

If the ETF is approved, the custody bank would provide ETF basket operations, order taking, fund accounting, fund administration and transfer agency services, according to the firm’s press release. 

First Trust and SkyBridge’s bitcoin ETF application is one of several made recently. WisdomTree, NYDIG, Valkyrie and VanEck have all filed but the U.S. Securities and Exchange Commission, which has historically rejected bitcoin ETF applications, hasn’t made a decision on any of the recent crop of filings. Most recently, Grayscale, a CoinDesk sister company, announced its intention to convert the closed-end Grayscale Bitcoin Trust to an ETF when it is “permissible” to do so.

Related: Robinhood Says 9.5M Customers Traded Crypto in Q1, Up From 1.7M in Q4

If bitcoin ETFs are approved this year, analysts believe that while they will primarily compete on fees and liquidity, they will also likely compete on custody and insurance options.

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Citi Completes Cross-Border Payments Pilot Using EOSIO-Based LACChain

5 years 6 months ago

The innovation arm of multinational finance giant Citi has wrapped a proof-of-concept project with the Inter-American Development Bank (IDB) to send cross-border payments on a blockchain.

  • According to an announcement Thursday, the project used the LACChain Blockchain Network to power payments from the IDB’s headquarters in Washington, D.C., to a recipient in the Dominican Republic.
  • LACChain runs on EOSIO and recently enlisted Block.one, the firm that raised $4 billion to build the software in 2018, as a partner.
  • Funds were deposited in dollars in a Citi account, tokenized and transferred using digital wallets before being transferred into Dominican pesos at an exchange rate set by Citi.
  • The IADB believes this project demonstrates how blockchain technology can improve the process of cross-border payments in development assistance and international remittances.
  • Projects of this nature are becoming fairly commonplace in the payments sector. The central banks of Hong Kong, Thailand, China and UAE recently joined forces on a project to use blockchain technology for regional payments.
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NYDIG Raises $100M From Insurance Giants in Latest Round

5 years 6 months ago

NYDIG raised $100 million from insurance companies Thursday as the institutional crypto shop previewed its latest business venture: bitcoin insurance products.

Liberty Mutual and Starr Insurance joined NYDIG’s “growth capital round” alongside other unnamed property and casualty coverage firms. NYDIG raised $200 million just last month from MassMutual, New York Life and others.

Also Thursday, NYDIG tapped industry veterans Mike Sapnar, CEO of Transatlantic Reinsurance, to lead its global insurance solutions wing. Matt Carey of annuity marketplace Blueprint Income will lead the U.S. effort, NYDIG said.

Related: Audius Brings NFT Galleries to EDM-Heavy Streaming Service

The insurance hires and investment partners – and the fact that NYDIG has now raised $300 million in two months – speak to the New York firm’s aggressive and multifaceted bitcoin expansion plan. It is now gearing up to make bitcoin insurance plays with financial backing from some of that industry’s most visible names.

What those products might look like was not entirely clear at press time. In a statement, NYDIG Executive Chairman Ross Stevens hinted “new bitcoin-denominated products for global insureds” were in the works.

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Ripple, CoinShares, ConsenSys Join Crypto Climate Accord

5 years 6 months ago

Ripple, CoinShares and ConsenSys have joined the Crypto Climate Accord, an initiative designed to make the cryptocurrency industry run entirely on renewable energy by 2025.

  • The initiative, led by Energy Web and the Alliance for Innovative Regulation (AIR), is inspired by the Paris Climate Agreement, according to an announcement Thursday.
  • The Accord is aiming to achieve net-zero emissions for the entire industry, including eliminating all historical emissions by 2040.
  • Additionally, the Crypto Climate Accord will seek to develop an open-source accounting standard for measuring emissions for players in the industry to adopt.
  • Meltem Demirors, chief strategy officer of CoinShares, said, “It’s vital we correct misinformation that has persisted about Bitcoin’s energy use and sources.”
  • Prior research by CoinShares in 2019 concluded that some 74.1% of the Bitcoin network is powered by renewable energy, thanks largely to the high prevalence of hydroelectric power in regions like Southwest China.
  • However, a study by the journal Nature Communications published Tuesday claimed that China’s bitcoin mining carbon footprint is equivalent to the entire emissions of one of its 10 largest cities.

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Riot Blockchain Acquires Whinstone’s Texas Bitcoin Mining Operations

5 years 6 months ago

Nasdaq-listed mining company Riot Blockchain (NASDAQ: RIOT) is acquiring Whinstone US, Inc. data center operations in Texas from Northern Data AG.

Riot Blockchain said Thursday it has signed an agreement to acquire the firm’s Texas operations for $80 million cash and 11.8 million shares of Riot stock at a total value of $651 million, with the goal of “increasing the American footprint in the global bitcoin mining landscape.”

Acquired in 2019 by Germany’s Northern Data AG, a developer and operator of high-performance computing (“HPC”) infrastructure solutions, Whinstone US operates a high-performance bitcoin mining facility based in Rockdale, Texas, with a 300-megawatt capacity, which can be rapidly expanded by an additional 450 MW, according to Riot Blockchain. 

Related: Audius Brings NFT Galleries to EDM-Heavy Streaming Service

“Riot will wholly own the largest bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry, ” said Jason Les, CEO of Riot Blockchain.

Bitcoin mining synergies

Once the deal closes, Northern Data will own 12% of the total outstanding common stock of Riot Blockchain.

“Through its equity stake in Riot, Northern Data will be able to benefit from the synergies generated by the transaction and continues to directly participate in the growth of bitcoin value potential,” said Aroosh Thillainathan, CEO of Northern Data.

“Simultaneously, Northern Data will be able to use the cash proceeds from the transaction to focus on, and further implement, its decentralized, multi-site, scalable and [environmental, social and corporate governance]-focused strategy.” 

Related: Bitcoin News Roundup for April 8, 2021

On Wednesday, Riot announced it had inked an agreement to purchase 42,000 mining machines from Bitmain Technologies, increasing the firm’s bitcoin mining hashrate by 93%.

At the time of publication Riot Blockchain shares were trading up 3.62% at $50.12 on Thursday.

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Anchorage Is Supporting DeFi Governance Token TRIBE Despite Its FEI Troubles

5 years 6 months ago

U.S.-regulated cryptocurrency custody firm Anchorage is adding support for TRIBE, the governance token attached to the FEI stablecoin, which tanked terribly after attracting a record $1.2 billion in backing.

Thanks to a lot of hype and speculation, FEI, which employs a novel system of incentives and penalties to hold parity with the dollar, has turned out to be an unstable stablecoin – at least since its explosive launch last week. 

The support of Anchorage is intended to help the project find its feet, Anchorage co-founder Diogo Mónica said in an interview with CoinDesk.

Related: Audius Brings NFT Galleries to EDM-Heavy Streaming Service

“Given this is the most successful launch ever of a stablecoin in terms of liquidity, I think it’s very much expected to have some initial volatility,” said Mónica. “I do think it’s a very legitimate approach and Anchorage’s support will get more institutions on board.”

Stablecoins of all stripes are an essential part of crypto. The most successful versions so far tend to have corresponding amounts of U.S. dollars held in custody, with perhaps some auditing provided. But crypto’s true believers want to escape fiat and are exploring a spectrum of possible solutions, from the relatively centralized to more decentralized options that use algorithms to maintain a peg.  

The FEI protocol aims to establish a middle ground, having created a decentralized trading protocol on popular decentralized finance (DeFi) trading platform Uniswap while attempting to incentivize users to hold the stablecoin by burning some FEI anytime they sell to the Uniswap pool and giving them a little anytime they buy from it. 

However, a rush to get hold of TRIBE governance tokens and bag some gains has meant the FEI penalty mechanism is impacting the supply (selling the coin) but also making demand disappear. 

Related: Bitcoin News Roundup for April 8, 2021

Controversy aside, Anchorage has been committed to supporting early-adoption networks, including tokens like Rally, Radicle and Hegic. 

“Our clients are betting on a digital-assets world, but they don’t quite know exactly which model is going to win out: fully pegged, fully decentralized or something in between like FEI,” said Mónica, adding:

“From the beginning, we have stablecoins as part of institutionalization of the space, and different types of decentralization, centralization and backing-over-collateralization narratives.”

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This Indicator Suggests Bitcoin Is Overdue for a Big Price Move

5 years 6 months ago

A popular price-chart indicator known as the Bollinger bandwidth suggests bitcoin could soon chart a big move – up or down.

The leading cryptocurrency has spent the better part of the last three weeks trading in the range of $50,000 to $60,000. The consolidation has worsened of late, with bitcoin bulls unwilling to lead the price action above $60,000 and bears struggling to force a break below $55,000.

Due to the persistent lack of clear directional bias, the Bollinger bandwidth, a price volatility gauge, has declined to a four-month low of 0.15. Bitcoin (BTC) witnessed big moves during the 2017 bull run each time the bandwidth fell to 0.15.

Related: Audius Brings NFT Galleries to EDM-Heavy Streaming Service

The indicator is calculated by dividing the spread between the Bollinger bands by the 20-day average of the cryptocurrency’s price. Bollinger bands are volatility lines placed two standard deviations above and below the 20-day average of price.

The metric dropped to around 0.15 in February, April and late October 2017, just before price rallies. A similar reading in March, July and September paved the way for market corrections.

The data tells us the impending volatility explosion is agnostic to price direction, meaning the big move can happen on either side.

Bitcoin’s ongoing range play looks quite similar to the early December consolidation below $20,000, which ended with a breakout following the Bollinger bandwidth falling to 0.15.

Related: Bitcoin News Roundup for April 8, 2021

While the seasonality for April is biased bullish, some analysts say the market looks overstretched. “Everyone who’s been in crypto for a while can recognize that things have been getting absolutely ridiculous on every level,” trader and analyst Alex Kruger tweeted on Wednesday.

Therefore, the impending big move could be bearish in nature. At press time, bitcoin is trading 1% higher on the day near $56,500, as per CoinDesk 20 data.

Also read: Bitcoin Options Traders Position for Gains (to $80K?) in Historically Bullish April

Related Stories

This Indicator Suggests Bitcoin is Overdue For a Big Price Move

5 years 6 months ago

A popular price-chart indicator known as the Bollinger bandwidth suggests the bitcoin could soon chart a big move – up or down.

The leading cryptocurrency has spent a better part of the last three weeks trading in the range of $50,000 to $60,000. The consolidation has worsened of late, with bitcoin bulls unwilling to lead the price action above $60,000 and bears struggling to force a break below $55,000.

Due to the persistent lack of clear directional bias, the Bollinger bandwidth, a price volatility gauge, has declined to a four-month low of 0.15. Bitcoin (BTC) witnessed big moves during the 2017 bull run each time the bandwidth fell to 0.15.

Related: All About Bitcoin – April 9, 2021

The indicator is calculated by dividing the spread between the Bollinger bands by the 20-day average of the cryptocurrency’s price. Bollinger bands are volatility lines placed two standard deviations above and below the 20-day average of price.

The metric dropped to around 0.15 in February, April, and late October 2017, just before price rallies. A similar reading in March, July, and September paved the way for market corrections.

The data tells us that the impending volatility explosion is agnostic to price direction – the big move can happen on either side.

Bitcoin’s ongoing range play looks quite similar to the early December consolidation below $20,000, which ended with breakout following the Bollinger bandwidth fell to 0.15.

Related: The Hash – April 9, 2021

While the seasonality for April is biased bullish, some analysts say the market looks overstretched. “Everyone who’s been in crypto for a while can recognize that things have been getting absolutely ridiculous on every level,” trader and analyst Alex Kruger tweeted on Wednesday.

Therefore, the impending big move could be bearish in nature. At press time, bitcoin is trading 1% higher on the day near $56,500, as per CoinDesk 20 data.

Also read: Bitcoin Options Traders Position for Gains (to $80K?) in Historically Bullish April

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Bitcoin Drifts Lower; Support Around $54K-$55K

5 years 6 months ago

Bitcoin (BTC) is trading lower as oversold moves on the hourly chart have been limited to the 50-period volume weighted moving average. Buyers have continued to take profit after another failed attempt to move beyond $60,000 on April 1.

  • BTC remains rangebound with lower support between $54,0000 and $55,000. Currently around $56,700.
  • Buyers will need to defend support to maintain the uptrend on the daily chart, which continues to show slowing upside momentum.
  • Technical signals are broadly neutral over the short-term and will require a decisive breakout above $60,000 or below $50,000 to derive price targets. For now, buyers and sellers are in a stalemate, responding well to intraday support and resistance levels.
  • On the hourly chart, BTC has retraced about 50% of its rally from March 25 and is down about 5% month-to-date.
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Fowler, Accused of Crypto Fraud, Gets a New Lawyer After Failing to Pay His Old Ones

5 years 6 months ago

Reginald Fowler, the embattled former National Football League investor, has received new legal representation five months after his previous lawyers filed a motion to withdraw as his representative counsel.

According to a court document filed in the U.S. Southern District Court of New York on Tuesday, Fowler has hired Edward Sapone of Sapone & Petrillo to appear as his legal counsel.

A report by Law360 on Wednesday also reveals the reasoning behind Fowler’s former lawyers’ decision to withdraw was due to a monetary dispute over prior services rendered.

Related: All About Bitcoin – April 9, 2021

“Mr. Fowler’s prior counsel withdrew from the case because they were not being paid. Do you understand that?” said U.S. District Judge Andrew L. Carter Jr. during a virtual hearing., as cited in the report. Sapone said he understood and thanked Carter for bringing it to his attention.

Fowler is one of two individuals accused of operating a “shadow banking” service for cryptocurrency exchanges. The pair allegedly acted under the false pretense of processing real estate transactions by opening bank accounts with various financial institutions to illegally store funds for the exchanges.

Crypto Capital, the shadow bank Fowler is accused of running, was the payment processor holding $850 million of Bitfinex’s funds. Crypto Capital’s bank accounts were seized in 2018, and Bitfinex lost access to those funds.

A follow-up hearing is set for July 7 by Judge Carter to allow time for Sapone to review discovery, according to the report.

Related: The Hash – April 9, 2021

See also: Prosecutors Detail ‘Shadow Bank’ Accounts in Fowler Crypto Case

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