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First North American Bitcoin ETF Approved by Canadian Securities Regulator

5 years 8 months ago

The first publicly traded bitcoin exchange-traded fund (ETF) in North America has been given the go-ahead by Canada’s financial regulator.

According to a decision document on Thursday, the receipt of approval from the Ontario Securities Commission (OSC) was filed under a Multilateral Instrument passport system in multiple Canadian jurisdictions.

Those territories include British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut.

Related: Blockchain Mortgage Platform Figure Launches SPAC to Raise $250M

While multiple close-ended bitcoin funds have been listed on the Toronto Stock Exchange, such as the ones listed by Canadian investment manager 3iQ, they differ from an ETF. In the case of an ETF, units are issued on a continuous basis while close-ended funds issue units at their initial public offering and reopenings.

The fund seeks to replicate the performance of the price of bitcoin minus the ETF’s fees and expenses, according to a fact sheet posted online by Canada-based asset manager Purpose Investments. The ETF will also not speculate on short-term changes in the price of bitcoin.

Investors seeking long-term capital growth, attractive risk-adjusted rate of return and those who can tolerate “high risk” are the type of investors the fund is targeting, according to the fact sheet.

ETFs contain a basket of investments, similar to mutual funds, but trade on exchanges much in the same way stocks do. While risk between funds fluctuates based on the asset type, the bitcoin ETF is considered “high risk.”

Related: The Making of CoinDesk TV

Those seeking a “steady source of income” from their investment are advised against buying into the fund.

The expenses of the fund consist of a management fee as well as operating and trading costs whereby the annual management fee is currently set at 1% of the value of bitcoin. Due to its fresh origins, operating expenses and trading costs are yet to be provided.

Meanwhile senior analyst at Bloomberg, Eric Balchunas, believes the fund in Canada is a “good sign” for a U.S.-sanctioned bitcoin ETF.

“Gotta love their [Canada’s] liberal regulators, or perhaps they’re normal and SEC [Securities and Exchange Commission] too conservative,” tweeted Balchunas. “Either way U.S. usually follows shortly after.”

The Toronto Stock Exchange is expected to list the fund in Canadian dollars while the portfolio and fund will be managed by Purpose Investments.

Read more: SEC Commissioner Peirce Says Market Is Ready for a Bitcoin ETP

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Nigeria’s Senate Summons Central Bank Chief to Explain Crypto Ban

5 years 8 months ago

Nigeria’s Senate has summoned the country’s top financial regulators for a briefing after the central bank ordered local financial institutions to stop providing services to crypto companies and users last Friday.

The Nigerian Tribune reported Thursday the Senate has mandated its banking committee to invite the governor of the central bank (CBN), Godwin Emefiele, and the director general of the Nigerian Securities and Exchange Commission, Lamido Yuguda, to appear at a time to be determined and explain the opportunities and threats of cryptocurrency. The Senate session discussing the issue was live-tweeted on the Senate’s official Twitter page. 

Last week’s CBN directive caused an uproar on social media, while local crypto advocates wrote to the bank asking for clarification on the order. In response, the CBN published a five-page statement that included a pledge to protect Nigerian citizens from the risks of cryptocurrencies. 

Related: Blockchain Mortgage Platform Figure Launches SPAC to Raise $250M

“[The CBN] will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators,” the statement said.

But a number of senators opposed the CBN move and an outright ban on crypto, though they spoke in favor of regulating the industry. 

“The next level is cryptocurrency and we can’t run away from it. It is CBN’s responsibility to bring Nigerians to the next level, not discouraging it. It is the simplest way of exchange,” Sen. Bassey Akpan said. 

Despite its risks and dangers, crypto has its merits, Sen. Dung Gyang said, adding that the lawmakers want the CBN governor to brief them on the risks and opportunities that crypto offers the nation so that Nigeria won’t “miss out.”

Related: First North American Bitcoin ETF Approved by Canadian Securities Regulator

Another senator, Solomon Adeola, said he is “strongly against” the CBN’s outright ban on crypto and that the bank should instead be regulating the space.

According to the Nigerian Tribune report, the Senate will be taking an informed position on the issue after the briefing. 

Sen. Adetokumbo Abiru, who co-sponsored the motion, said cryptocurrency is a major transaction tool and an employer of “teeming youths” in the country. 

“So I am not sure the CBN can ban it,” Sen. Abiru said. 

Nigerian crypto users seemed largely undeterred after the CBN directive took effect, turning to peer-to-peer exchange platforms to continue trading. Nigerian peer-to-peer trading soared past two of Africa’s largest crypto markets, Kenya and South Africa, since the announcement.  

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Bitso adquiere la plataforma de criptoderivados Quedex con base en Gibraltar

5 years 8 months ago

Bitso, un exchange enfocado en América Latina, ha adquirido Quedex, una plataforma de trading de criptoderivados con sede en Gibraltar, donde también es regulada. 

Bitso, que cuenta con inversores como Pantera Capital, Coinbase Ventures y otros, en diciembre del año pasado logró una ronda de inversión de USD 62 millones con el fin de escalar su negocio en nuevos mercados y explorar nuevos productos. 

Read this article in English.

Related: Blockchain Mortgage Platform Figure Launches SPAC to Raise $250M

A pesar de que los términos de la compra de Quedex no fueron dados a conocer, el CEO de Bitso, Daniel Vogel, dijo a CoinDesk que se trató de un buen acuerdo por varias razones. 

Quedex fue la primera plataforma de criptoderivados en recibir una licencia mediante el marco regulador de activos digitales de Gibraltar, la misma jurisdicción y régimen que regula a Bitso, dijo Vogel. La adquisición de Quedex también permite a Bitso hacerse con una tecnología de vanguardia, añadió.

Lee más (en inglés): Coinbase-Backed Bitso Raises $62M to Expand Crypto Footprint in Brazil

Bitso y sus planes de crecimiento

Además del pedido para que Bitso ingrese a otros países como Brasil, los clientes de la compañía —basada en Ciudad de México— también han solicitado productos más sofisticados, como el trading con apalancamiento, los criptofuturos y opciones, dijo Vogel.

Related: First North American Bitcoin ETF Approved by Canadian Securities Regulator

“Hasta ahora sólo hemos ofrecido trading al contado”, dijo Vogel. “Lo que vemos es que se ha logrado mucha educación financiera a través de cripto. Hace unos años, los clientes preguntaban cuál era la diferencia entre una orden límite y una orden de mercado. Hoy preguntan cómo operar con futuros y opciones en Bitso”.

Vogel explicó que un equipo de 22 empleados, muchos de ellos ingenieros de Quedex, supervisará la integración de la nueva tecnología de trading. En el último recuento de equipo, Bitso tenía unos 200 empleados repartidos en 25 países.

“Esta mañana, el número de empleados aumentó a 230”, dijo Vogel.

Traducido por Andrés Engler.

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Market Wrap: Bitcoin Above $49K While Ether Transaction Fees Surge Again

5 years 8 months ago

Bitcoin set a new record above $49,000 after trading between $47,000 and $48,000 for much of Thursday. Traders and analysts told CoinDesk they remain bullish on the overall market, as institutional investors’ interest in bitcoin is growing “at a staggering pace.”

  • Bitcoin (BTC) trading around $47,174.04 as of 21:00 UTC (4 p.m. ET). Gaining 5.48% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $44,057.64-$48,635.84 (CoinDesk 20)
  • BTC above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.

Despite bitcoin’s new historical high price earlier Thursday, the trading volume on the eight exchanges tracked by the CoinDesk 20 remains low compared with earlier this week.

The focus of the market on Thursday was on the news that more big players are embracing bitcoin; Mastercard said it will allow merchants to receive payments in cryptocurrency soon, and BNY Mellon announced it will launch a new digital custody unit.

Related: Blockchain Mortgage Platform Figure Launches SPAC to Raise $250M

“To put it simply, it’s really hard to be bearish on bitcoin right now … and you don’t even need to look too deeply at all of the fundamental metrics and technical indicators to feel that,” said Adam James, senior content editor at OKEx’s research arm OKEx Insights.

“The market is bullish,” Denis Vinokourov, head of research at digital assets broker Bequant, said. “There are no immediate fundamental factors that would drive the price down.”

Read More: Mastercard Will Let Merchants Accept Payments in Crypto This Year

That said, bitcoin is struggling to push higher after it briefly went above $48,000 earlier Thursday, according to Chad Steinglass, head of trading at CrossTower. He told CoinDesk that in the short term, the resistance level would remain at or just below $50,000.

Related: First North American Bitcoin ETF Approved by Canadian Securities Regulator

The nearest upside hurdle will be higher, at around $53,000, according to Katie Stockton, a technical analyst for Fairlead Strategies. She also pointed out that some overbought and oversold activity will support up to two months of price consolidation.

In the longer term, said John Kramer, trader at market maker GSR, it is “realistic” to think that bitcoin’s on a “healthy” run towards $100,000 by the end of the summer.

“Expect more banks to offer custody and additional products, as well as other companies to follow Tesla and MicroStrategy’s lead,” Kramer said. “On top of this, there’s still additional stimulus on the table, which is what kicked off this rally last spring.”

However, in the derivatives market, options traders don’t appear convinced bitcoin will rally to $100,000 anytime soon. Based on current prices, the market has assigned a 12% probability this price be reached before the end of this year, as CoinDesk reported.

Ethereum killers are killing it, as Ethereum gas fee surges

The second-largest cryptocurrency by market capitalization, ether (ETH), was up Thursday, trading around $1,769.03 and climbing 2.75% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

On the technical side, Joel Kruger, cryptocurrency strategist at exchange LMAX Digital, said the initial resistance level would be the earlier all-time high at around $1,840 on Wednesday.

“A break above [$1,840] will open the door for a test of massive resistance at $2,000, which represents a critical psychological barrier and measured move upside extension,” Kruger said. “We see the first level of support at $1,680, with a break below to take the immediate pressure off the topside and open the door for a correction back down towards the $1,500 area.”

Ether’s rally is not just simply following bitcoin’s price trend, according to analysts. It is largely driven by the fast-growing decentralized finance sector.

“As these [DeFi] projects continue to gain in popularity, we will likely see increased interest in ether,” Guy Hirsch, U.S. managing director at eToro, told CoinDesk. “It would not be surprising to see it make a run at $2,000 soon.”

At the same time, significant growth of the “Ethereum Killers,” including Cardano, Polkadot, Solana, and Algorand, is a reflection of the frustration around the high gas fees on the Ethereum blockchain. Gas refers to the internal pricing unit for running transactions on Ethereum.

Read More: Cardano, Polkadot Market Caps Surpass XRP as Some Bet on Alternatives to Ethereum

“The high gas fees on Ethereum are clearly presenting opportunities to competing layer 1 smart contract platforms,” said Jason Lau, chief operating officer at San Francisco-based crypto exchange OKCoin. “As Ethereum continues through its multi-year process of launching Eth 2.0 to address its scaling issues, it remains to be seen whether developers will migrate their apps to other platforms.”

Others, however, dismissed any threats to Ethereum.

“The price performance [of “Ethereum killers”] does not necessarily mean there is a real threat to derail Ethereum’s dominance,” Vinokourov said. “In fact, the DeFi market continues to grow, and with it so does ether.”

Other markets

Digital assets on the CoinDesk 20 are mostly in green Thursday. Notable winner as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Equities:

Commodities:

  • Oil was down 1.26%. Price per barrel of West Texas Intermediate crude: $57.94.
  • Gold was in the red 0.94% and at $1825.71 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield climbed Thursday in the green 1.162%.

Update (Feb. 11, 0:17 UTC): Added new record high price for bitcoin in headline and first paragraph.

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PayPal Wants to Be a CBDC Distributor

5 years 8 months ago

PayPal could be to central bank digital currencies (CBDC) what private banks are to physical dollars.

The company’s CEO, Dan Schulman, laid out a vision during its investor day on Thursday for PayPal’s digital wallets being the means by which central banks distributed CBDCs to consumers across income levels. 

“You think about how many [digital wallets] we’re going to have in the next two, three or five years, and we’re a perfect complement to central banks and governments to distribute those digitized forms of currency,” Schulman said. 

Related: NFTs Go Mainstream: From Minecraft to Rapper Post Malone

Schulman also revealed that PayPal is looking into smart contracts and tokenizations of other non-crypto assets. 

“This is a once in a multi-decade opportunity where the fundamental rails of the system are going to be redefined and we have a chance to help shape that,” Schulman said. 

The company also released new numbers around the transaction activity of its customers who use its crypto products. 

PayPal customers that use its crypto services have a 12% increase in weekly transactions on the platform. This is in part because more than 40% of the U.S. PayPal customers who use crypto return to complete more than two additional transactions, the company said.

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These Gaming Studios Are Bringing Bitcoin Payouts to Everyday Esport Gamers

5 years 8 months ago
  • Gaming developers have begun integrating Bitcoin’s Lightning Network into their own games and existing titles to provide players with bitcoin payouts.
  • The Lightning Network is a payment protocol that facilitates fast, near-feeless transactions on a network that operates with different rules than Bitcoin’s primary network.
  • This in-game rewards economy offers everyday gamers a “stake” in the game and an opportunity to monetize their hobby, a privilege typically enjoyed only by the Goliaths of the professional esports industry.

The end of the match was nothing special. From the outside, it looked like any other Counter Strike: Global Offensive (CS:GO) esport match, until the final results rolled in.

After the winners were announced, a QR code popped up in the corner of the screen with the message: “You have won 8,673 sats!” (sats being short for “satoshi,” a microunit of bitcoin).

This sats reward corresponded with the player’s match points, the in-game scoring system that traditionally only exists as a means to gain experience points to “level up” in the game. Except these points weren’t just in-game currency, they were actual money that could be withdrawn from the game.

Related: NFTs Go Mainstream: From Minecraft to Rapper Post Malone

A play-for-pay plugin from software developer ZEBEDEE called Infuse makes this possible. It uses Bitcoin’s Lightning Network to facilitate instant, near-feeless payouts to players. Previously in closed-beta, ZEBEDEE’s CS:GO servers are now open to the public.

The release brings Lightning Network compatibility to a mainstream game title for the first time, and it’s something of a milestone for a fledgling industry that uses Lightning-powered games to reimagine how players interact with (and monetize) their favorite pastime.

Lightning Network gaming

ZEBEDEE is just one of a handful of pioneers in the growing (but still rather niche) intersectional industry of bitcoin and video games. They’re approaching Lightning-integrated gaming a bit differently, though. Instead of building a Lightning game from scratch, they’re bringing the Lightning Network to a game with 28 million monthly active players. 

“[An] interesting change in the past year has been the drive to bring bitcoin to already popular games. It’s widely known that developing games that reach any level of success is a monumental task,” Des Dickerson, the VP of business operations at Lightning Labs and a MintGox organizer, told CoinDesk. 

Related: Avalanche Blockchain ‘Bug’ Wreaks Havoc on Digital Transactions

“In response, companies like ZEBEDEE are restructuring their approach and making it possible to integrate bitcoin into games that have already reached massive adoption.”

The MintGox esports tournament series (that’s “magic internet gathering,” in playful homage to the Mt.Gox exchange and its roots in Magic the Gathering) is a collective that features games from ZEBEDEE, Mandel Studios and Donner Labs.

The monthly tournament series pays out prize pools in bitcoin, with each game providing its own twist on Lightning functionality. Donner Lab’s Bitcoin Bounty Hunt, the first-to-launch Bitcoin shooter, pays out satoshis per kill like the CS:GO integration. One of ZEBEDEE’s from-scratch games, Bitcoin Rally (a Mario Kart clone), litters the road in sats; players can collect these digital coins and chuck them at opponents to stun them, or they can keep them for payout at the end of the match.

Dickerson told CoinDesk that the tournament series “has grown significantly over the past year with much of the growth happening over the last few months.” MintGox’s viewership was roughly 100 at launch, she said, and the inaugural event saw fewer than 1,000 transactions.

Now, 11 events in and counting, Dickerson said MintGox “regularly [sees] 6,000 viewers … and around 15,000 transactions” per installment.

The creators driving this growth believe they are at the forefront not only of a new economic standard for the video game industry but of an entirely new dynamic for how you capture attention and engage players and spectators.

Shootin’ caps and stackin’ sats

In ZEBEDEE’s case, the new dynamic is giving esports players skin in the game. 

“The idea is that having a stake that has value, rather than just time invested and in-game points, creates a greater connection to the game. It’s the classic theory of having skin in the game. So you have some value that represents your invested time and it’s there, it’s permanent, you can take it out of the game,” ZEBEDEE CEO Simon Cowell told CoinDesk.

And, of course, it works the other way around, too. “When you get shot, there’s actual economic impact,” he said.

In the future, the gaming studio will supply sats from sponsors for some matches, but for now users can front their own money to play in one of three servers: 100 sats, 1,000 sats or 10,000 sats. Each match allows a maximum of 16 players (so a match in a 10,000 sats server would have a total prize pool of 160k sats)

“If your 1,000 points are actually 1,000 sats, you’re going to want to play better or play more matches to recoup anything you’ve lost,” said Cowell.

One of the first first-person shooters to conceptualize Lightning gameplay, Satoshis Game’s Lightnite, is a completely from-the-ground-up, battle royale inspired by Fortnite; it debuted in 2019 at The Lightning Conference in Berlin. Players earn satoshis by eliminating others from the sudden-death, one-player-take-all match. The game uses Blockstream’s Liquid Network to tokenize non-fungible player and weapon skins.

The rewards economy

When ZEBEDEE supplies the prize, it takes a cut from the advertising revenue, Cowell said. Jack Everitt of THNDR GAMES, which makes the Bitcoin Bounce and Turbo 84 mobile games, has used this model to fill prize pools for his own games. In Everitt’s flagship game, Bitcoin Bounce, players collect tickets bounding across Bitcoin’s blockchain. These tickets can be entered into a raffle that pays out sats from THNDR GAMES ad revenue, Everitt told CoinDesk.

It’s a way for users to actually monetize their time on the game and earn a share of the related ad revenue. It doesn’t hurt that it’s also a good way to keep users coming back for more, Cowell said.

“You can take the bitcoin that funds your games out of your existing marketing budget. And it’s actually more effective than traditional advertising because by giving users sats rewards in game, you incentivize them to come back,” Cowell said.

This model, a kind of rewards economy that gamifies user attention, is becoming a popular new standard for startups in the Bitcoin realm. Flagship rewards programs like Lolli and Fold, which offer users sats-back rewards for purchases at participating merchants, have evolved into bitcoin-back debit cards (such as Fold App’s own) and sats-back programs at gift card exchanges like Bitrefill.

Sarutobi, a game developed by ZEBEDEE developer Christian Moss, pays out satoshi rewards for collecting in-game coins, all from ad revenue.

THNDR GAMES’ Turbo 84 incorporates a spin wheel for daily prizes, and in Bitcoin Bounce, players collect tickets that are automatically placed in a daily raffle for satoshis, both of which are paid out of THNDR’s ad revenue. 

“With the spin wheel [and the tickets], the idea of the spin wheel is to get them to come back. Oh, what have I won today, what have I won today,” Everitt told CoinDesk.

With the Lightning Network, “you can have more direct interaction with users,” Cowell said. For instance, he hypothesized, sponsors or viewers could drop in-game powerups with Lightning payments, in-game ads could feature QR codes for rewards and corporate sponsors could drop a bot in-game that you shoot for sats.

Bitcoin gaming, not blockchain gaming

The Bitcoin gaming community is still small, and a lot of its growth comes more from the bitcoiner side of the track than from the gamer side.

Lightnite has roughly 2,000 users, Satoshis Games COO Carlos Borlado told CoinDesk. Based on leaderboard information on Bitcoin Bounty’s website, it has some 1,200. 

“MintGox and these bitcoin gaming companies have captured the attention of the Lightning and bitcoin communities over the past year. But we haven’t even begun to penetrate the traditional gaming space,” Dickerson said. 

She continued that, since “blockchain solutions” were peddled to the video gaming industry in the last market cycle, the initial coin offering (ICO) bubble popped a lot of the video game industry’s enthusiasm for cryptocurrency integrations.

That’s why these builders aren’t building anything “on the blockchain” – they’re just building new payment rails.

Borlado said esports players need to “lose their fear of Lightning wallets” so that adoption of these games increases, but that “once they do, they will never go back.”

For its part, ZEBEDEE built Infuse and its Lightning-gaming focused wallet, which can sync a player’s Twitch streaming accounts to their gamertags for Lightning games and QR codes for payouts. 

The Infuse plug-in itself is not limited to CS:GO, and ZEBEDEE is running polls to see which games its users want to see supported next, like Battlefield, Call of Duty, Dota 2, Minecraft, Rust and Team Fortress 2.

Esports meets bitcoin

For Cowell, Lightning Network tips can democratize the competitive gaming industry and give gamers the potential to monetize their skills outside of the professional esports arena. The international esports industry is projected to grow to $1.5 billion by 2023. The winning teams in global tournaments for Dota 2, for instance, have been known to take home $15 million in prize money.

Though only a fraction of gamers ever get good enough to reach the big leagues, any gamer can earn bitcoin playing in public bitcoin matches, Cowell said.

“Instead of having to go to a professional esports tournament, you can play online to earn money. That’s the whole point of it. This isn’t my phrase, but it’s the ‘democratization of monetization.’ Once money is software, any stakeholder in the gaming industry can create mini-businesses in the game.”

It’s too early to say bitcoin has changed the gaming industry. But Dickerson said the real transformation comes when bitcoin sees further adoption into mainstream titles like CS:GO. 

There are millions of esports players waiting to onboard onto bitcoin, and gaming is the way to get them a seat on the ride, Dickerson said.

“Exposing those users to the possibilities of bitcoin will change the video game industry as it currently stands. Imagine the potential when integrated into other popular games like Fornite, Call of Duty, Minecraft and more. This is when we will witness mass bitcoin adoption.”

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PayPal’s Crypto Products Coming to the UK in Months

5 years 8 months ago

PayPal’s buy, sell and hold crypto products are coming to the United Kingdom in a few months, the company announced during its investor day Thursday.

Its launch of crypto as a funding service will go live in a few months as well, and crypto products in Venmo will go live in the first half of 2021. 

The results from the new product at the e-commerce giant have “exceeded” expectations, said Jonathan Auerbach, executive vice president and chief strategy, growth and data officer at PayPal (NASDAQ: PYPL).

Related: Avalanche Blockchain ‘Bug’ Wreaks Havoc on Digital Transactions

“We’re actually looking at our crypto services to help position PayPal, to help shape the role of cryptocurrencies and [central bank digital currencies] in consumer payments, commerce and financial services safely and securely,” Auerbach said. “So early days for us here, but we’re moving rapidly.”

In its Q4 2020 earnings, PayPal reported a 11.8% increase in transaction revenue quarter over quarter, and said that customers who purchased crypto through the platform have been logging into PayPal twice as much as they were before buying crypto.

This is a developing story and will be updated.

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Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

5 years 8 months ago
Three trends 1. Crypto infrastructure is being laid down across the banking, tech and financial sectors.
  • BNY Mellon, the world’s biggest custodian bank, will allow customers to custody crypto by the end of the year. It’s working with unnamed outside partners to build out the offering, according to CoinDesk’s Ian Allison.
  • Mastercard plans to support digital currency transactions directly on its massive network, and allow merchants that opt in to participate directly in the crypto economy, CoinDesk’s Danny Nelson reported. “Our philosophy on cryptocurrencies is straightforward: It’s about choice,” Mastercard Executive Vice President for Blockchain and Digital Asset Products Raj Dhamodharan wrote in a recent blog.
  • Amazon is preparing to launch a “digital currency” project in Mexico, Nelson also reported. The e-commerce giant has posted a number of job offerings, describing the project, spearheaded by Amazon’s Digital and Emerging Payments (DEP) division, as a way for customers “to enjoy online services including shopping for goods and/or services like Prime Video.”
  • Uber is considering adding crypto payment options, if there is a clear benefit, CEO Dara Khosrowshahi said on CNBC Thursday. The ridesharing giant is a member of the Diem (formerly Libra) Association, which is developing a payments network. Khosrowshahi shot down the idea of adding bitcoin to the company’s balance sheet.
  • Enterprise software provider R3 has launched a new computing platform called Conclave to bring privacy to sensitive business data, aimed at financial institutions. “[Conclave] paves the way for a new generation of trusted services that can detect fraud, reduce cost, build high-value multi-party analytics and more – where the owners of the data control how it is processed,” R3 said.
2. U.S. regulators are flexing their crypto knowledge.

They’re showing both an appreciation for blockchain technology as well as concern for what these new tools mean for the global economy.

Treasury Secretary Janet Yellen said, for the third time in recent weeks, that there’s a “growing problem” with crypto being used for illicit purposes, including terrorist financing. “I see the promise of these new technologies, but I also see the reality: Cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” she said at a financial sector innovation policy roundtable.

U.S. Securities and Exchange Commissioner Hester Peirce said the U.S. capital markets are ready for a bitcoin exchange-traded product on CoinDesk TV Thursday. She also pushed back on the idea that crypto is primarily a tool for illicit finance, adding, “There is more illegal activity happening in cash.”

Related: Framework Ventures’ DeFi Fund Booms as Tech Team Staffs Up

The New York Stock Exchange (NYSE) halted trading of Virginia-based Blue Ridge Bank’s stock (BRSB) after a spike in trading activity Wednesday driven by its entrance into the bitcoin ATM game.

Perennial skeptic Nouriel Roubini said yesterday the SEC should investigate people like Tesla CEO Elon Musk for “market manipulation” after the meme-posting billionaire became interested in bitcoin and dogecoin.

3. What’s going on in altcoin-land?
  • Centralized exchanges – such as FTX, Binance, Huobi and OKEx – are all seeing breakneck use and appreciation of their native utility tokens. CoinDesk markets reporter Muyao Shen wrote that bitcoin’s rapid appreciation is driving volumes on these crypto gateways. As a result, FTX’s FTT, Binance’s BNB and Huobi’s HT have grown 249%, 238%, and 161% on the year.
  • Dogecoin developers are pushing out the first network updates in two years as the meme-coin barks at their heels. Dogecoin is now worth over $9 billion after influential handlers – from Elon Musk to rock star Gene Simmons – “endorsed” the joke. CoinDesk’s Colin Harper gives an impressive rundown on the technical fixes in store.
At stake

Larry Flynt
Every day brings a new example of the world waking up to the power of decentralized tools. Bitcoin being added to balance sheets, banks announcing custody solutions and payments monoliths like Visa and Mastercard planning to integrate crypto all point to a future where crypto is a major part of the economy. Some would go as far as saying it’s the future of money itself.

It’s not just a financial or technological revolution, but a cultural one. Crypto has a central thesis: There are certain basic services to which everyone should have access. That’s a liberal idea. All men and women are born equal, have equal claims to be heard, to build and to congregate. The difference between crypto and a document like the U.S. constitution, which ensures these inalienable rights, is that crypto is a technological foundation to encode them. It removes the eternal gatekeepers that have historically bent this frame.

Related: All About Bitcoin – Feb 12, 2021

Yesterday, Larry Flynt, the renegade publisher and speech activist, passed away from heart failure. The founder of Hustler is a complicated man. He was a purveyor of smut, but also one of the 20th century’s greatest civil liberties champions. His story is fundamentally a crypto one.

In 1983, Flynt was sued for libel by television evangelist Rev. Jerry Falwell after Hustler published a satire in which the Moral Majority crusader was said to have kissed his mother in an outhouse. The case wound up before the U.S. Supreme Court – though not before Flynt graced a district court wearing an American flag as a diaper and a purple heart medal – where the charges and penalties were dismissed.

The meaning of the case, and its legacy for strong U.S. speech protections, is summed up by something Flynt allegedly said: “If the First Amendment will protect a scumbag like me, then it will protect all of you. Because I’m the worst.” (I think this line was invented for “The People vs. Larry Flynt,” the 1996 biopic.)

We’re facing a similar moment in time now with the rise of crypto. In giving anyone access to financial services, or a web platform in the case of the decentralized web, naturally questions will arise about what sort of behavior society should condone. That’s what Treasury Secretary Janet Yellen is wrestling with when talking about the promises of crypto as well as its use in illicit finance.

The last time Blockchain Bites covered the porn industry, CoinDesk Executive Editor Marc Hochstein raised questions about PornHub’s privacy policies after the adult entertainment site switched to accepting crypto as its primary payment form. The site also began requiring users to identify their accounts before posting any material. He wrote:

“If this prevents monsters from using the site in abusive ways, all the better. But it will create risks for those who only post lawful content.”

With intermediaries entering into the crypto economy, similar questions will arise. Gatekeepers, such as Mastercard, will once again be required to make decisions about who has access to these novel payment rails. It’s not always so clear.

Flynt may have some wise words to consider: “Hypocrisy is a detriment to progress.”

Quick bites
  • Someone bought a Tesla Model 3 for 91 BTC in 2013. The car and coin are now at near-parity. (CoinDesk)
  • Tyler Cowen interviews Coinbase’s Brian Armstrong (Marginal Revolution)
  • The Men Who Pump Doge (Decrypt)
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CoinDesk

Framework Ventures’ DeFi Fund Booms as Tech Team Staffs Up

5 years 8 months ago


Last summer’s decentralized finance (DeFi) craze pumped massive gains into Framework Ventures’ flagship fund, the $14 principal investment of which has snowballed into $300 million under management. 

The two-year-old DeFi studio and venture capital firm is now preparing to undergo a company-wide expansion. 

Framework emerged from stealth mode in August 2020 with $8 million in seed funding. Now, less than a year later, Co-founder Michael Anderson told CoinDesk he aims to double Framework’s headcount – across engineering and project teams – to 30 by the end of 2021.

Related: Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

Recent top hires have begun filling Framework’s c-suite positions. Since October, the firm has hired a finance chief in John DiCerbo, a Numerai veteran; a tech lead in DeFi engineer Ray Pulver; and a Principal in Roy Learner of Wave financial. 

Anderson’s tasked Learner with managing a venture fund anchored by tokens SNX, AAVE, LINK, WIFI and GRT – “some of the big wins,” he said, that have pushed the fund’s value into the hundreds of millions. Each position is targeted to around 5% of the network, he said.

Read more: Three Arrows, Framework Invest in DeFi Site Aave With $3M LEND Token Sale

He said asset growth drove the fund’s increase, not new subscriptions. The only investments came at the start of the fund.

Related: All About Bitcoin – Feb 12, 2021

Inside the venture fund is a Labs division, the DeFi studio where in-house engineers build products tailored to Framework’s invested networks. Those projects’ core teams often work directly with Framework, Anderson said, making the whole thing function as a pseudo-incubator of sorts.

“We really need a software first tact at helping provide additional services,” Anderson said. “We’re adding services that help these networks – more so in the way of just dollars.”

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CoinDesk

Reflexer Labs Raises $4M to Build Out ETH-Backed Stable Asset, RAI

5 years 8 months ago

Pantera and Lemniscap have led a $4.14 million round for Reflexer Labs, the creator of a new gentlecoin, one that follows ether’s (ETH) price, minus the volatility. Several backers from its prior round followed on.

If a purely crypto token had an easily conceivable value relative to real products (for example, one token consistently equaled, say, four Snickers bars), that would meet the test of a “unit of account,” something that could be used to assess the value of goods.

“Unit of account” is one of three facets of the traditional money definition that major cryptocurrencies fail to meet due to their volatility. That’s what Reflexer is going for: a crypto-native unit. 

Related: Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

The new round comes ahead of its announced launch of its RAI token by early March. RAI tracks longer term gains and losses of ETH without the gigantic movements by taking advantage of control theory from traditional engineering.

“You don’t need to peg to anything in order to be stable,” founder Stefan Ionescu told CoinDesk in an email. “The most important thing to understand is that DeFi can and should be detached from the fate of the US Dollar. RAI is a first step in that direction.”

Reflexer Labs ran a demo test of its system from October to January, called Proto RAI. It was largely able to maintain a stable price relative to ETH but with a small amount of gain. The company compares its approach to central banks’ use of the managed float, where exchange rates look for general stability over time, despite occasional short-term tumult.

Stablecoins that trace the U.S. dollar have been wildly successful; most agree their success was a necessary ingredient in establishing decentralized finance (DeFi) as Ethereum’s killer feature.

Related: Framework Ventures’ DeFi Fund Booms as Tech Team Staffs Up

“Many stable assets in use today are pegged to fiat currencies, a design with many limitations. These networks have limited economic incentives that can be used to influence the market price of their native stablecoins,” Paul Veradittakit, partner at Pantera Capital, said in a press release.

Roderik van der Graaf, founder of Lemniscap, said in the release, “Reflexer is opening up a completely new design space in the realm of ‘stable’ cryptoassets.”

The company has work on its user interface and educational materials to do ahead of the release of RAI. A governance minimized crypto asset, it has also published a timeline for winding down parameters that the community can change.

Correction (Feb. 11, 16:19 UTC): Reflexer Labs raised $4.14 million, not $4.4 million as was previously included in this story.

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CoinDesk

Avalanche Developers Rush Client Patch as ‘Bug’ Slows Blockchain Transactions

5 years 8 months ago

The Avalanche network has come to a near halt after “a bug in the cross-chain functionality” code that enables the Avalanche protocol and the Ethereum Virtual Machine (EVM) to speak with each other failed under high loads, according to the Avalanche developer team on Reddit.

The release of Avalanche‘s newest decentralized finance (DeFi) product, money market Pangolin, snowballed into “insane load” for the network, which further “triggered a very low probability bug that produced a bad state in the network,” the team said on Reddit. 

The ability to send transactions has crawled to a halt with some users reporting wait times of up to four hours for finalizing a transaction. Funds are safe, however.

Related: Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

The network has gone into a “self-healing” mode after the bug “caused the entire network to panic.” The team maintains nothing with the core protocol itself is wrong.

Avalanche developers worked overnight on the code break, but will only push an update once the team is “100% confident” it will address the problem.

The Avalanche developer team did not return answers to questions by press time.

This is a developing situation and will be updated.

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CoinDesk

Alabama Man Charged Over SIM Swap Hacks That Stole $150K in Crypto

5 years 8 months ago

A man from Alabama who targeted Manhattan (N.Y.) residents to steal more than $150,000 in cryptocurrency via a SIM-swapping scheme faces a string of charges, the New York Daily News reported Thursday.

  • Joseph Chase Oaks, 22, of Millbrook, Ala., face charges of grand larceny, identity theft and computer trespass, among other charges.
  • Oaks allegedly operated a scam where he accessed 50 online accounts to steal the cryptocurrency between August 2018 and October 2019.
  • By transferring the cell phone numbers of over 300 people to other phones in his possession, Oaks allegedly bypassed two-factor authentication measures to access the online accounts.
  • Prosecutors said the accused worked alongside others in the U.S. and Canada to access over 60 smartphones and hundreds of SIM cards.
  • Manhattan District Attorney Cy Vance said in a statement that it’s clear SIM-swapping “has only grown more common and prolific” since the first prosecution by New York authorities two years ago.

See also: 10 Arrested Over SIM-Swap Hacks That Stole $100M in Crypto From Celebrities: Europol

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CoinDesk

SEC Commissioner Peirce Says Market Is Ready for a Bitcoin ETP

5 years 8 months ago

U.S capital markets are ready for a bitcoin exchange-traded product, U.S. Securities and Exchange Commissioner Hester Peirce said on CoinDesk TV Thursday.

  • The regulator playfully known as “crypto mom” said people are already eager to trade a bitcoin ETP, “and so if we don’t give them the natural way, which I think would be an ETP, they are going to look for other (less optimal) ways to do it.”
  • Peirce also pushed back in her interview against an emerging government narrative that cryptocurrency is a dangerous rail for terrorist financing. She cast doubt on the size of the alleged problem and insisted there was no way to ban bitcoin outright.
  • Pierce said she looks forward to working with SEC chairman nominee Gary Gensler once the former MIT digital currency professor is confirmed by the Senate.
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CoinDesk

Bitso Buys Gibraltar-Based Crypto Derivatives Platform Quedex

5 years 8 months ago

Latin America-focused exchange Bitso has bought Quedex, a crypto derivatives trading platform, based and regulated in Gibraltar.

Bitso, backed by Pantera Capital, Coinbase Ventures and others, was in the news last December, having raised a whopping $62 million to help scale the business into new territories and clearly also to explore new products. 

The commercial terms of the Quedex acquisition were not made public, but Bitso CEO Daniel Vogel told CoinDesk it was a good fit for a number of reasons. 

Related: Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

Quedex was the first crypto derivatives platform to receive a license through Gibraltar’s digital asset regulatory framework, the same jurisdiction and regime that regulates Bitso, said Vogel. The Quedex acquisition also allows Bitso to get its hands on some nice cutting-edge tech, he added.

“As the industry grows and trading volumes increase, one of the big challenges is building really high-performance, low-latency trading engines, and the Quedex team has done that,” said Vogel in an interview. “So, the idea is to replace our entire trading infrastructure with Quedex’s trading infrastructure.”

Bitso’s growth plans

As well as demand to move into territories like Brazil, customers of Mexico City-based Bitso have also been asking for more sophisticated products such as leveraged trading, crypto futures and options, Vogel said.

“We’ve only offered spot trading until now,” Vogel said. “What we see is that there’s been so much financial education that’s happened through crypto. A few years ago, clients were asking what’s the difference between a limit order and a market order. Today they are asking to trade futures and options on Bitso.”

Related: Framework Ventures’ DeFi Fund Booms as Tech Team Staffs Up

Vogel explained that a team of 22 staffers, many of them Quedex engineers, would be overseeing the integration of the new trading engine technology. At the last count, Bitso had some 200 employees spread over 25 countries.

“That increased to 230 as of this morning,” said Vogel.

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CoinDesk

First Mover: Bitcoin at Center Stage (and Record High) as Mastercard, BNY Go Crypto

5 years 8 months ago
Price Point

Bitcoin (BTC) jumped more than 6% Thursday to a new record high of $48,297 after Mastercard (MA) confirmed CoinDesk’s exclusive Wednesday that the payments-processing giant plans to let merchants receive payments in cryptocurrency starting later this year.

And Bank of New York Mellon (BK), the world’s largest custodian bank with some $41 trillion of assets in safekeeping, said Thursday it’s moving into crypto.   

“Bitcoin and its peers are, quite simply, going to be part of the mainstream financial universe sooner rather than later,” Simon Peters, cryptoasset analyst for the trading platform eToro, wrote Thursday. “I expect demand to surge and see bitcoin prices hitting at least $70,000 by the end of this year.”

Related: Blockchain Bites: Mastercard, BNY Mellon Embrace Crypto; Amazon Floats ‘Digital Currency’ Project

In traditional markets, trading in Asia was muted ahead of Lunar New Year public holidays, with China on break for a week. (The year of the Ox is seen as bullish for bitcoin, of course.) U.S. stock futures pointed to a higher open as investors focused on the prospect of higher inflation as the economy accelerates and governments and central banks maintain aggressive stimulus policies. Gold weakened 0.1% to $1,842 an ounce. 

The News

BNY Mellon gets in: Bank beats rivals JPMorgan, Citigroup to the punch with plan for new digital custody offering later this year. “It will be driven by client interest and demand,” Mike Demissie, head of advanced solutions at BNY Mellon, told CoinDesk’s Ian Allison in an interview. 

Mastercard too: Card network plans to let merchants receive payments in cryptocurrencies later this year. The news was reported Wednesday by CoinDesk’s Danny Nelson and later confirmed by the company in a web post. “Whatever your opinions on cryptocurrencies – from a dyed-in-wool fanatic to utter skeptic – the fact remains that these digital assets are becoming a more important part of the payments world,” according to the Purchase, N.Y.-based company.

Yellen’s yellow light: U.S. Treasury Secretary Janet Yellen said the use of cryptocurrencies for illicit purposes are a “growing problem,” while adding that she sees “the promise of these new technologies.” The remarks, made Wednesday at a roundtable on financial industry innovation and published in a Treasury Department press release, could fuel some traders’ concerns that the U.S. government might mount a crackdown as cryptocurrencies gain wider acceptance.

Related: Framework Ventures’ DeFi Fund Booms as Tech Team Staffs Up

Amazon in Mexico: E-commerce giant preparing to launch a digital-currency project in Mexico, job postings show. It’s not clear how much the planned foray relates to “Amazon Coins,” an 8-year old virtual currency initiative that allows holders to transact across web games.

Market Moves

Bitcoin at center of conversations at center of global markets

Inflation has all of a sudden become the biggest issue in global markets. and as with all things involving humans there’s a lot of disagreement to go around. 

The debate ranges from whether the Federal Reserve has the will power or inclination to snuff out inflation if prices really starts to tick up, to whether bitcoin is really the solution for big investors or corporations looking to protect themselves from the potential debasement of the U.S. dollar. 

One thing’s for certain: The three most important U.S. officials driving the economic strategy are U.S. President Joe Biden, Treasury Secretary Janet Yellen and Fed Chair Jerome Powell. And all three are broadly in alignment that the country’s focus at this point should be on a stimulus-fueled recovery that will create lots of jobs. Inflation isn’t really a concern right now. Worry about that later, the thinking goes. 

“The Fed will continue to support the devastated labor market with plenty of brrrrrrrrrrrrrr,” Mati Greenspan, founder of the foreign-exchange and cryptocurrency analysis firm Quantum Economics, wrote Wednesday. That two-consonant word, for those who missed the popular meme last year, is the elongated version of an onomatopoeic rendition of the sound a money printer ostensibly makes. 

A big data point on inflation arrived Wednesday from the U.S. Labor Department, which reported that the “core” consumer price index, which excludes food and energy items, was unchanged in January from December levels. Over the past 12 months, it’s up 1.4%. No big deal, right? That’s well below the Fed’s target of 2% annually. 

The real bogeyman, though, isn’t what’s happening with inflation now as the lingering coronavirus pandemic continues to take a toll on economic activity, suppressing consumer demand, but what happens when activity resumes in full and people get out and about and start spending all the money they’ve saved.

So big investors are fixated on bond-market signals showing fast-rising expectations for inflation in the future. The average level implied over the next five years recently ticked above 2%, and the chart shows a steep slope upward to the right:

The U.S. government’s budget deficit has totaled $736 billion over the first four months of the year, a record for the period and 89% higher than a year earlier, according to a statement released Wednesday. The figures don’t even account for the $1.9 trillion stimulus package that Biden is pushing Congress to pass despite reluctance from the opposition Republican Party as well as influential members of his own Democratic Party.

It goes without saying that any fresh stimulus would follow a lot that’s already been done, both on the fiscal and monetary sides: The Federal Reserve has created about $3.3 trillion of new money since the start of 2020, pushing the size of its balance sheet to nearly $7.5 trillion for the first time.

“With no hints of scaling back the Fed’s massive asset purchases, Powell is a super dove,” Oanda Senior Market Analyst Edward Moya wrote Wednesday after reviewing a speech Wednesday by the Fed chair. 

Bitcoin over the past year has become one of the most popular ways for big investors to play the “reflation trade,”and there’s no shortage or diversity of opinions on the cryptocurrency. It’s a digital version of gold or it’s a scam benefiting from a tulip-like mania, with a lot of space in between. Here’s a quick rundown of comments that emerged Wednesday.

  • Bank of Canada Deputy Governor Timothy Lane: “The recent spike in their prices looks less like a trend and more like a speculative mania.” 
  • David Rosenberg, former chief economist for Bank of America, now at his own firm: “You’re buying bitcoin on the assumption that some bigger fool is going to buy it at a higher price.”
  • Three Morgan Stanley analysts, in a slide presentation. “Central bank policies could be setting up for accelerating inflation. Investing in bitcoin provides a hedge against that risk, especially if supply chain payments can be migrated from fiat to bitcoin.”
  • Twitter Chief Financial Officer Ned Segal: “We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor, if they actually pay in bitcoin, and whether we need to have bitcoin on our balance sheet should that happen.”
  • Morgan Stanley Chief Global Strategist Ruchir Sharma: “Even if bitcoin’s price pops, as it has before, the rush of 2020 can’t be dismissed as an irrational mania. Cryptocurrencies are still young, they still face growing pains. But they also promise speed, transparency and low fees that traditional payment channels cannot match. They satisfy a growing demand for a digital alternative to gold, an asset likely to protect investors from massive money printing and the threat of inflation. To younger investors, ‘crypto’ already evokes digital, stable and good, not shadowy and sinister. The rest would be well advised to recognize that the currency world is changing, or risk being left behind.”
  • Bank of America’s research investment committee: “As a long-term store of value, cryptocurrencies might be attractive, but only for investors who can tolerate substantial volatility.”
  • Nouriel Roubini, economics professor at New York University, appearing on Wednesday’s “First Mover” show on CoinDesk TV: “In the case of bitcoin, it doesn’t have any income, it doesn’t have any use, it doesn’t have any utility. So what’s the value of it, based on what? Based on no intrinsic value, and purely a speculative bubble.”
  • Mark Haefele, chief investment officer for global wealth management at Swiss banking giant UBS: “The basic function of a modern currency is to store value. By contrast, the diminishing incremental supply of bitcoin has made ‘bubbling‘ one of its basic functions.”

To sum up: The prospect of future inflation has become a central topic for investor conversations about global markets and the economy, and bitcoin is at the center of those. 

With prices for the cryptocurrency up 55% already in 2021, outperforming almost everything in traditional markets for the third straight year, Wall Street analysts and mainstream corporate executives are no longer shrinking from the discussion. 

Bitcoin Watch

“Rich list” grows; options market sees low odds of $100K in 2021 

Bitcoin’s “rich list,” consisting of blockchain addresses with at least 1,000 coins, continues to grow, a sign of sustained accumulation by large holders also known as whales, CoinDesk’s Omkar Godbole writes.

  • Tally hits fresh record high of about 6.1 million on Wednesday, surpassing the previous peak around 5.75 million reached Jan. 8, according to data provider Glassnode.
  • The data, coupled with the persistent positive Coinbase premium, a sign of institutional demand, suggests the path of least resistance for the cryptocurrency is to the higher side. NOTE: Coinbase premium is the gap between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair involving the tether stablecoin, according to the South Korea-based on-chain data site CryptoQuant.
  • Options market, however, is pricing low odds of a rally into six figures this year.
Token Watch

Binance coin (BNB), FTX token (FTT), Huobi token (HT):  Utility tokens for centralized exchanges hit all-time highs.

Dogecoin (DOGE):

  • Doggie-faced meme token’s surging price (1,472% year to date) brings new focus to programmers’ historically scattered efforts to develop blockchain.
  • Castle Island’s Nic Carter, a CoinDesk columnist, tells CNBC that “a lot of retail punters are going to lose money on dogecoin in the long term because there’s really not much there in terms of interesting technology.”
  • Tesla CEO Elon Musk tweets that he “bought some dogecoin” for his son, “so he can be a toddler hodler.” (Tesla shares fell 5.3% Wednesday, the biggest decline in a month.)
  • Wallet holding almost $3B of dogecoin reportedly placed 20 transactions for 28.061971 DOGE, which corresponds to Elon Musk’s birth date.
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CoinDesk

New Kraken Venture Fund to Target Early-Stage Crypto, Tech Startups

5 years 8 months ago

Kraken, the fourth-largest cryptocurrency exchange by trading volume, has announced the launch of a new venture fund that will invest in early-stage cryptocurrency and tech startups.

  • According to a Thursday announcement, Kraken Ventures will be led by former head of corporate development at Kraken, Brandon Gath, and will operate as an independent fund.
  • However, Kraken, the exchange, will provide financial backing, as well as guidance and expertise.
  • Startups selected by Kraken Ventures will receive investments ranging from $250,000 to $3 million, Kraken told CoinDesk.
  • Specifically, the fund will focus on areas including fintech, crypto companies, protocols, DeFi, artificial intelligence, machine and deep learning, regulatory technology and cybersecurity.
  • “As we enter the crypto industry’s next growth phase, Kraken Ventures will support entrepreneurs in making the financial system more open, inclusive, and transparent,” said Jesse Powell, co-founder, and CEO of Kraken.

Read more: Kraken Exchange Brings Its Spot Price Data to DeFi Via New Chainlink Node

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CoinDesk

Uber CEO Says Company to Consider Crypto for Rides, Not Its Balance Sheet

5 years 8 months ago

Uber CEO Dara Khosrowshahi said on CNBC Thursday the rideshare giant will consider accepting cryptocurrencies including bitcoin as a form of payment.

  • Khosrowshahi said the company will look into such options if it can identify a benefit or a need to do it.
  • He shot down any notion of Uber buying bitcoin for its corporate balance sheet, however. “We are going to keep our cash safe,” Khosrowshahi said.
  • Uber has been a member of the libra (now diem) stablecoin association since October 2019.
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CoinDesk

Former HSBC Exec and Blockchain Expert Diana Biggs Joins Valour as CEO

5 years 8 months ago

Swiss digital asset investment firm Valour has appointed Diana Biggs, former HSBC innovation executive and long-term bitcoin proponent, as its new CEO.

  • Biggs will guide the company’s expansion, according to an announcement on Thursday.
  • Valour’s founder and director, Johan Wattenstrom, described Biggs as “the perfect candidate” thanks to her “vision for bringing digital assets into the mainstream.”
  • Biggs was global head of innovation for HSBC’s private banking division from 2019-2020, having previously worked as head of digital innovation, U.K. and Europe, in retail banking and wealth management since 2017.
  • She is also an associate fellow at the University of Oxford’s Saïd Business School, guest lecturing on blockchain technology and digital assets.
  • Her Tedx Talk on blockchain technology has nearly 45,000 views and is regarded by many as one of the best on the subject.
  • Valour is a provider of exchange-traded financial products (ETPs) enabling investment in digital assets in with “security, liquidity and oversight of regulated exchanges.”

See also: Swiss Firm Launches ‘No-Fee’ Bitcoin Exchange-Traded Product on Nordic Growth Market

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CoinDesk

Bitcoin Hits New All-Time High as BNY Mellon Announces Crypto Custody

5 years 8 months ago

Bitcoin set a new record highs on Thursday after BNY Mellon, America’s oldest bank, announced crypto custody for institutional clients.

The cryptocurrency set a new high of $48,297 during the U.S. trading hours, surpassing the previous peak price of $48,226 registered on Tuesday, according to CoinDesk 20 data.

Buyers stepped in around $46,700 after BNY Mellon said it will hold, transfer and issue bitcoin and other cryptocurrencies on behalf of its asset-management clients.

Related: Uber CEO Says Company to Consider Crypto for Rides, Not Its Balance Sheet

“Bitcoin is loving the BNY Mellon news. It’s a very big deal,” trader and analyst Alex Kruger tweeted.

A wave of institutional adoption has hit the bitcoin market this week, pushing prices higher by 22%.

On Monday, the U.S. electric car maker Tesla, a Fortune 500 company, announced bitcoin purchases worth $1.5 billion, bolstering the cryptocurrency’s appeal as a reserve asset. Payments giant Mastercard said early Thursday that it is planning to allow merchants to accept crypto payments.

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CoinDesk

Social Token App Fyooz Offers Chance to Play Beer Pong With Rap Artist Post Malone

5 years 8 months ago

Rapper Post Malone and his manager Dre London have teamed up with social money platform Fyooz to launch a celebrity beer pong league using non-fungible tokens (NFTs).

According to the announcement, the Celebrity World Pong League NFT will bring recipients the chance to play beer pong against the rapper.

Beer pong is a drinking game that involves players throwing a ping pong ball across a table with the mission of landing it in a glass of beer on the other end. NFTs, meanwhile, are digital tokens that can have different attributes to represent a wide variety of physical goods as well as intangible assets.

Related: Uber CEO Says Company to Consider Crypto for Rides, Not Its Balance Sheet

“We’re working hard to bring the entertainment business and the crypto community together at Fyooz,” said Dre London. “The different type of entertainment, experiences, and innovative NFTs we’re working on can help drive mass adoption and evolve the live entertainment business at the same time.”

To take part in the NFT event, users must hold the FYZNFT token, which will be airdropped to the Fyooz community and will also be available on Uniswap. Fyooz Experience NFTs can be held or traded, the firm said.

The NFT trend is seeing increased interest from celebrities. Actress Lindsay Lohan tweeted about her first digital collectible Wednesday. Lohan said she would donate proceeds from the sale of the token to charities that accept bitcoin. And also on Wednesday, a charity-focused art NFTs project launched with backing from the Winklevoss brothers, Philadelphia 76ers-owner Michael Rubin and DJ Alesso.

Fyooz said it plans to drop other collectibles from artists including King Bach and Lil Yachty for initiatives across live gaming, digital artwork, memes, music, and video NFTs.

Related: Former HSBC Exec and Blockchain Expert Diana Biggs Joins Valour as CEO

Read more: Rapper Lil Yachty Sells Out Social Token in 21 Minutes

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