Aave

Aave LEND

$0.6089
Market Cap $ 791.587 MM (#27)
24h Volume $ 170.298 MM
Chg. 24h: 4.86%
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Aave News

.@compoundfinance is a place where you can lend or borrow cr...

.@compoundfinance is a place where you can lend or borrow cryptocurrencies. All you need is an #Ethereum wallet, so… https://t.co/fByf8fQHyj

10 days ago

Discover the best of #DeFi with @AaveAave👻 in Eidoo! Lend ...

Discover the best of #DeFi with @AaveAave👻 in Eidoo! Lend and earn directly in the app 👀 Just jump into the DeF… https://t.co/0WnNhTizbw

14 days ago

Our 1st Panelist calls out Stani Kulechov - Founder/CEO of @...

Our 1st Panelist calls out Stani Kulechov - Founder/CEO of @AaveAave 👻 Stani released ETHLend, 1 of the first #DeFi… https://t.co/fEFS2LNoKI

a month ago

ANT's FCAS rating is in all time high, close to assets like ...

ANT's FCAS rating is in all time high, close to assets like LEND or KNC. Read more about FCAS here 👇… https://t.co/fME3Z9elCt

2 months ago

Antonopoulos: Investors could convert BTC into ETH then lend...

Antonopoulos: Investors could convert BTC into ETH then lend it out on a platform where the token can earn interest… https://t.co/AZkKWrLgX3

2 months ago

Lend $BAT, Earn $Bat + $COMP, sell $COMP, buy more $BAT, le...

Lend $BAT, Earn $Bat + $COMP, sell $COMP, buy more $BAT, lend that $BAT, earn more $BAT+$COMP, rinse and repeat. W… https://t.co/EUOi7FOJAn

3 months ago

🪙Add ENJ as a Collateral Type 🪙Add LEND as a Collateral Type...

🪙Add ENJ as a Collateral Type 🪙Add LEND as a Collateral Type 🪙Add LINK as a Collateral Type 🪙Add MATIC as a Collate… https://t.co/P9pcym4lL5

3 months ago

@CoyeteStarrk @chainlink When staking $LINK in a #BancorV2 p...

@CoyeteStarrk @chainlink When staking $LINK in a #BancorV2 pool you lend your LINK to the pool & receive pool token… https://t.co/TRU9Nrajmj

3 months ago

👻 @AaveAave has arrived! 🎉 Now you can lend and earn direc...

👻 @AaveAave has arrived! 🎉 Now you can lend and earn directly in your Eidoo wallet! Just check into the… https://t.co/XPWH76jr9L

4 months ago

WICC Collateral Insurance is officially launched🥳#crypto #De...

WICC Collateral Insurance is officially launched🥳#crypto #Defi #blockchain You lend, we bear the risks❤️Compensat… https://t.co/0yFBq12teh

5 months ago

Did you get your $LEND? 🤲 LEND is the token by @AaveAave, ...

Did you get your $LEND? 🤲 LEND is the token by @AaveAave, the #DeFi protocol empowering users to lend and borrow… https://t.co/fDZ047sh84

5 months ago

As mining businesses recover from the market turmoil, we are...

As mining businesses recover from the market turmoil, we are here to lend a helping hand.🤝 One of the initial idea… https://t.co/BHpcLF4D8J

5 months ago

Deposit and lend $BUSD on @AaveAave. ...

Deposit and lend $BUSD on @AaveAave. https://t.co/op3pIty8aF

6 months ago

@MarysMeals Lend a hand, you’ll be in great company. ...

@MarysMeals Lend a hand, you’ll be in great company. https://t.co/fMchRxHsLE

7 months ago

"Banks must be trusted to hold our money and transfer it ele...

"Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bu… https://t.co/KcoPvi1sGS

7 months ago

RT @synthetix_io: You can now lend out sUSD through Fulcrum ...

RT @synthetix_io: You can now lend out sUSD through Fulcrum (from @bzxHQ ) on an @eidoo wallet! https://t.co/fnMIS9wru5

8 months ago

Want to experience some #DeFi magic with @synthetix_io? 🎁 L...

Want to experience some #DeFi magic with @synthetix_io? 🎁 Lend your $sUSD via Fulcrum! 💌 This token tracks the pr… https://t.co/7txOMjoyUD

8 months ago

Government of Guandong Launches Blockchain-Based Financing Platform to Help Small Businesses

The latest blockchain-related news coming out of China involves a new blockchain-based financing platform that was launched by the government of Guandong that is intended to help small companies in the region receive loans faster from commercial banks. The project is supported by Alibaba’s fintech arm Ant Financial and Ping An insurance subsidiary OneConnect and looks to streamline the process for commercial banks to lend funds to small businesses with more detailed and reliable profiles, including credit ratings, provided by its blockchain network. (JF)

8 months ago

Don’t just #HODL... Lend your #cryptocurrency & earn! 🚀 ...

Don’t just #HODL… Lend your #cryptocurrency & earn! 🚀 Thanks to our latest integrations with @Compoundfinance &… https://t.co/GxNNomPKe4

a year ago

Lossless Lotteries - The Riskless Bet That Pays off Big

Cryptocurrency gambling has been on an upward trajectory since the inception of Bitcoin over a decade ago. Transparency, speed and accessibility have all been hugely improved thanks to the open nature of public blockchains like Bitcoin and Ethereum. The subsequent media frenzy which followed Bitcoin’s volatile price increases have given rise to hundreds of Bitcoin casinos and dozens of Ethereum ones, allowing lucky individuals to cash in on this wildly appreciating asset. However, what started as a simple replacement to fiat currency deposits and withdrawals has now morphed into something far more complex, powerful and rewarding to players and operators alike. These more complex games are the result of Ethereum’s smart contract layer, which allows developers anywhere in the world to publish decentralized applications with limitless functionality. Unsurprisingly, this tool has been quick to provide value to the gambling industry which stands to benefit enormously by removing trust from both the players and middlemen. Smart contract betting on Ethereum is still in its infancy; scalability issues and congestion on the Ethereum network has forced service providers like FunFair.io to create casinos that operate “off-chain”, drastically increasing the speed of betting but with a trade-off of less trust and less transparency. While scaling improvements for Ethereum are expected within the next 12-24 months, operators have been quick to spot an opportunity for gambling games - such as lotteries - which require less transactions, allowing them to fit into the already congested Ethereum network. Lotteries have been a simple concept to recreate in smart contracts as the mechanics behind them are purely transactional. As a result, there are no shortage of cryptocurrency lotteries out there today, however the introduction of decentralized finance to the Ethereum blockchain has enabled a far more creative implementation of the lottery games that we’ve come to know and love. Lossless lotteries are the culmination of two established ideas. The first is the smart contract lottery - an open source contract which accepts deposits, generates randomness and pays out to a winner at a specified time; all without the need to trust a middleman. The second and more recent technology which has enabled the “lossless” side of these lottery games is Decentralized Finance (DeFi). Decentralized finance is a general term for financial applications which operate trustlessly. One such DeFi application is Compound.finance, a lending and borrowing protocol which allows users to lend out their cryptocurrency assets at a specified interest rate. With these two concepts now understood, we can now examine the “lossless lottery”. This lottery is a smart contract (or set of smart contracts) which takes deposits as expected. However, in the time between the lottery’s start and end date, the deposited funds are lent out through a protocol such as Compound. During this time, the held funds trustlessly earn interest and - given a long enough time period and large enough pooled deposits - the interest earned can be quite substantial. When the lottery closes, a lucky winner is selected and the total interest earned is paid to the individual. The kicker for those looking to avoid risk is that all of the lottery entrants then receive their deposits back in full, creating a lossless lottery. Lossless lotteries are a great way of mitigating risk while still entering into a chance to win large sums of money. While similar types of lottery exist in the traditional world, (premium bonds in the UK for example) the ability to run such a game on Ethereum dramatically improves efficiency and trust in the game while minimizing operation costs for the lottery owner. The lossless lottery is an early concept of Ethereum-based gambling. Over the coming years more complex DeFi protocols will no doubt appear, sparking an entirely new and previously unimagined set of gambling games for players to enjoy. In the last 24 months, decentralized finance on Ethereum has grown from zero to over $600 million in “assets under management” with no sign of slowing down. Watch this space. Disclosure: This is a sponsored post Image(s): Pixabay The post Lossless Lotteries - The Riskless Bet That Pays off Big appeared first on NullTX.

a year ago

Pelosi’s Challenger Agatha Bacelar on Bitcoin as an Agent for Social Change

Typically, it’s the kid who tells their parents about Bitcoin, but for U.S. Democratic Congressional candidate Agatha Bacelar, it was the other way around. “It first started with my dad. He read the Satoshi white paper really early on, before the mainstream knew about it. At first it was just him talking about it, and at first I didn’t know whether to believe him or follow this groundbreaking technology,” she told us on the Bitcoin Magazine Podcast. This was in 2011, when Bitcoin was still largely an obscurity. I joked with her that she’s a bit of a Bitcoin O.G. (though she noted with humor that she’s not BTC rich), which is curious given that the news of her campaign accepting cryptocurrency donations would paint her as something of a newcomer. On the contrary, she said that she acquired her first coins during her sophomore year at Stanford University and took the proverbial dive down the Satoshi rabbit hole. But instead of viewing Bitcoin through a strictly Austrian lens for its impact on monetary economics, she saw it, perhaps somewhat uniquely, as a tool for progressive social change. “I read the paper, saw its potential for actually starting a social justice movement. I didn’t see it as much as an economic tool,” she said during the interview. Bitcoin and Blockchains for Social Good Andreas Antonopoulos once said in a Bitcoin Magazine interview that Bitcoin’s “post-modern” and “mirror-like capability” means that folks “tend to reflect onto Bitcoin their preconceived politics.” This, as with the stereotypical Libertarian-anarchic cultures that originally gravitated to Bitcoin, could rightly be applied to Bacelar. The 27-year-old is part of a rising faction of progressive young talent that is shaking the ranks of the Democratic party. For her part, she’s challenging Speaker of the House Nancy Pelosi (California’s 12th district incumbent with more than 30 years of uninterrupted tenure in the U.S. House of Representatives) for a Democratic seat in Congress. Running as she is on a hyper-progressive platform which advocates for single-payer healthcare and the Green New Deal, her left-leaning mores have blended themselves with Bitcoin’s open-source ethos. She believes that cryptocurrency contributions could inject some much-needed transparency into the election process. This is a fitting view for a woman who has rejected taking any money from Super PACs, positioning herself against an incumbent who courts more corporate dollars than most of her peers. “Politics is run by dark money, run by private ledgers and super PACs and shell [organizations] where you can’t trace the money and see where it comes from,” Bacelar said. Bitcoin and Empowerment Juxtaposed against political “dark money” system is one that uses a public ledger. With Bitcoin and its blockchain, we can trace funds and keep tabs on the source of campaign funds, while circumventing centralized contribution hubs like ACT Blue, a donations platform responsible for processing a majority of credit/debit payments for Democratic candidates in the U.S. The Bitcoin donation option hasn’t become very popular, Bacelar thinks, because it was only made legal a few years ago, and most members of Congress are too old to be privy to it or see its benefits. After all, in some regards, a technology for self-empowerment isn’t exactly in the interests of the powers-that-be. Bacelar expressed that, as technologies, Bitcoin and blockchain are all about empowerment so, naturally, they lend themselves to the same truth-to-power ethos that America’s other social movements emphasized. “I view this similarly to the civil rights movement,” she said. “I think it’s hard for people to believe that we can create our own tools for liberation. If you look at the civil rights movement, it was so hard for segregationists, it was so hard for them to believe that black people create and lead their own movement and liberation.” Democracy Earth Bacelar sees blockchain technology’s benefit to society extending beyond Bitcoin and, per her comment about viewing it first as an agent for social movements, she has for some time. This perspective is what led her to co-found Democracy.Earth with her father, Herb Stephens, as well as Santiago Siri and Glen Weyl. She met Siri and Weyl while working at the Emerson Collective, an LLC for incubating tools and services for social good. They were pitching the idea, known as DemocracyOS at the time, to Y Combinator and other incubators, including the Emerson Collective. “I think I was the only one who got what they were talking about,” she said, referring to her alignment with Siri’s and Weyl’s optimism in blockchain technology’s latent potential for social change. “If you really read the origin of where this movement started, blockchain was created for the people. To move power away from larger centralized, corrupt institutions. To give the power to people to have their own keys to their data, their money, and to be able to publically audit informa

a year ago

Ex-Credit Suisse CEO Says Money Isn’t Worth Anything as Bitcoin Approaches Halving

The former CEO of the two biggest banks in Switzerland, Oswald Gruebel, has openly criticized the negative interest rates applied by the Swiss National Bank. In his opinion, money might lose its value if this continues. As negative interest rates are usually introduced to fend off inflation, Bitcoin appears to have the perfect solution. Negative Rates Across the Board Gruebel was CEO at Credit Suisse from 2004 to 2007 and at UBS Group AG from 2009 to 2011. He offered his opinion on the negative rates in Switzerland, which were introduced in 2015 in an attempt to strengthen the franc: “Negative interest rates are crazy. That means money is not worth anything anymore. As long as we have negative interest rates, the financial industry will continue to shrink.” The results in the country have not been as satisfying as expected, and banks continue to suffer. The world’s largest wealth manager, UBS, has reportedly started charging a 0.6% fee on cash savings of more than €500,000. Negative rates are not only applied in Europe but in Japan as well. Announced by the Bank of Japan in 2016, they hadn’t provided any growth months later. As previously reported by CryptoPotato, the former chairman of the U.S. Federal Reserve, Alan Greenspan, has warned that negative rates are on their way to the U.S. as well. He noted that they exist almost everywhere and added: “It’s only a matter of time before it’s more in the United States.” Negative interest rates mean that instead of receiving money on deposits, customers pay fees to keep their money in the bank. They encourage banks to lend money more freely so that businesses and individuals can invest or spend the money instead of keeping it safely in a deposit account. Naturally, this begs the question of whether there is a suitable alternative. Bitcoin Solves This As mentioned above, negative interest rates are used to stave off inflation, among other things. That’s where Bitcoin steps in. The cryptocurrency has a preset inflation rate, currently around 3.7%. Around May of next year, we will also see the Bitcoin Halving take place. It will affect Bitcoin’s total supply and the inflation rate. The rewards each miner receives for adding a block to the network will be decreased by half. This particular halving will not only reduce the reward to 6.25 per block, it will also decrease the inflation rate from 3.6% to 1.8%. Moreover, Bitcoin has additional advantages over traditional fiat currencies. For one, it’s a scarce digital object with a finite supply, unlike fiat currencies that are issued at will. Bitcoin’s supply will only decrease from here on out. Basic economic principles dictate that if the supply of an asset decreases while the demand for it goes up or remains the same, this should drive its price up. Featured image courtesy of Wikipedia The post Ex-Credit Suisse CEO Says Money Isn’t Worth Anything as Bitcoin Approaches Halving appeared first on CryptoPotato.

a year ago

Ex-Credit Suisse CEO Says Money Isn’t Worth Anything As Bitcoin Gets Closer To Halving

The former CEO of the two biggest banks in Switzerland - Oswald Gruebel - has openly criticized the negative interest rates applied by the Swiss National Bank. In his opinion, money might lose its value if this continues. As negative interest rates are usually introduced to fend off inflation, Bitcoin appears to have the perfect solution. Negative Rates across the Map Gruebel was CEO at Credit Suisse from 2004 to 2007 and at UBS Group AG from 2009 to 2011. He offered his opinion on the negative rates in Switzerland, which were introduced in 2015 in an attempt to strengthen the franc: “Negative interest rates are crazy. That means money is not worth anything anymore. As long as we have negative interest rates, the financial industry will continue to shrink.” The results in the country have not been as satisfying as expected and banks continue to suffer. The world’s largest wealth manager - UBS - has started reportedly charging a 0.6% charge on cash savings of more than €500,000. Negative rates are not only applied in Europe but in Japan as well. Announced by the Bank of Japan in 2016 as the latest iteration, they didn’t provide any growth months later. As previously reported by CryptoPotato, the former chairman of the U.S. Federal Reserve, Alan Greenspan, warned that negative rates are on their way to the U.S. as well. He said that it’s seen almost everywhere around the world and added: “It’s only a matter of time before it’s more in the United States”. Negative interest rates mean that instead of receiving money on deposits, the customers will be paying fees to keep the money in the bank. The intent appears to encourage banks to lend money more freely, so that businesses and individuals can invest or spend the money, instead of keeping it safely in a deposit. Naturally, this brings the question if there is a suitable alternative. Bitcoin Solves This As mentioned above, negative interest rates are used to stave off inflation, among other things. That’s where Bitcoin steps in. The cryptocurrency has a pre-determined inflation rate, currently set to around 3.7%. Around May next year, we will also see the Bitcoin Halving taking place. It will affect the total supply and the inflation rate. The rewards each miner receives for adding blocks to the network will be decreased in half. This particular one will not only reduce the reward to 6.25 per block but it will also decrease the inflation rate from 3.6% now to 1.8%. Moreover, Bitcoin reveals additional benefits when stacked against traditional fiat currencies. For once, it’s a scarce digital object with a finite supply, unlike fiat currencies that are issued at will and on occasions. Bitcoin’s supply will only decrease. Basic economic principles dictate that if the supply of an asset decreases while the demand for it goes up or remains the same, this should drive its prices up. Featured image courtesy of Wikipedia The post Ex-Credit Suisse CEO Says Money Isn’t Worth Anything As Bitcoin Gets Closer To Halving appeared first on CryptoPotato.

a year ago

Bitcoin (BTC) Supply Could be Blown Above 21M

The Bitcoin (BTC) maximum supply is capped at 21 million coins, of which more than 18 million are already mined. But the actual supply of coins within the economy may be higher, due to various forms of fractional reserves practices. How far will bitcoin's supply expand over its 21M limit in M0+ forms (M1, M2, M3)? I know examples of exchanges not being fully backed today (providing margin to big ticket clients), but curious as to whether people/payment processors will start accepting IOUs as valid payments. — Eric Wall (@ercwl) October 4, 2019 Bitcoin Holders May be Tempted to Fractional Reserve Practices Eric Wall, cryptocurrency expert, warns that there is nothing to stop BTC owners from effectively expanding the supply. This could happen in the manner of banks, which hold onto a portfolio of assets, but can also lend them without losing control. Wall believes BTC usage may adopt a broad money supply, which is similar to a mix between the activity of central and commercial banks. Currently, most BTC adopters tend to hold coins in their own wallets. But custodial services for crypto assets are expanding. Coinbase already offers multiple custodial wallets. The Bakkt Bitcoin futures exchange also bases its trading on holding BTC on behalf of its clients. Wall warns that this is the first stage of using IOUs instead of BTC directly. Such a usage of BTC is comparable to bank notes issued in exchange for actual gold stored in a bank vault. However, proponents of sound money believe that any form of fractional reserve banking would defeat the original purpose of BTC - to allow anyone to control their own wealth. Exchanges are perhaps the best candidates to inflate the actual BTC supply, social media comments echoed the initial argument. Currently, market operators claim to preserve BTC in their custodial cold wallets, while issuing a database entry to traders. Adding lending and margin trading, exchanges manage to increase the impact of the BTC and coins held in custody. Real, Accessible BTC Are Actualy More Scarce Exchanges trade about 1.5 million BTC each day, representing a small part of the supply. OTC deals are harder to estimate. The Bitcoin network carries between $4 billion and $300 million of transactional value per day, still a fraction of the total BTC market cap of $144 billion. At the same time, the supply of reachable, actual BTC coins, is somewhat diminished. Some of the coins that have never been moved belong to the initial blocks presumed to be mined by Satoshi Nakamoto. Some coins are locked beyond retrieval due to private key loss. Some coins have been seized by states and law enforcement agencies. Newly minted BTC may also be held back by miners, to be sold on a specialized OTC market for new coins. Rough estimates show that 30-50% of BTC may be out of circulation for some reason. So far, no one has tried to use the locked coins or claim ownership and issue IOUs. The only exception is Craig Wright, who claims to own the initial Satoshi Nakamoto stash, only without being capable of unlocking the coins himself. What do you think of the potential for BTC to inflate its supply? Share your thoughts in the comments section below! The post Bitcoin (BTC) Supply Could be Blown Above 21M appeared first on Bitcoinist.com.

a year ago

Bitcoin (BTC) Supply Could ‘Expand Over 21 Million’

The Bitcoin (BTC) maximum supply is capped at 21 million coins, of which more than 18 million are already mined. But the actual supply of coins within the economy may be higher, due to various forms of fractional reserves practices. How far will bitcoin's supply expand over its 21M limit in M0+ forms (M1, M2, M3)? I know examples of exchanges not being fully backed today (providing margin to big ticket clients), but curious as to whether people/payment processors will start accepting IOUs as valid payments. — Eric Wall (@ercwl) October 4, 2019 Bitcoin Holders May be Tempted to Fractional Reserve Practices Eric Wall, a cryptocurrency expert, warns that there is nothing to stop bitcoin owners from effectively expanding the supply. This could happen in the manner of banks, which hold onto a portfolio of assets, but can also lend them without losing control. Wall believes BTC usage may adopt a broad money supply, which is similar to a mix between the activity of central and commercial banks. Currently, most bitcoin adopters tend to hold coins in their own wallets. But custodial services for crypto assets are expanding. Coinbase already offers multiple custodial wallets. The Bakkt Bitcoin futures exchange also bases its trading on holding BTC on behalf of its clients. Wall warns that this is the first stage of using IOUs instead of BTC directly. Such usage of bitcoin is comparable to promissory banknotes issued in exchange for actual gold stored in a bank vault. However, proponents of sound money believe that any form of fractional reserve banking would defeat the original purpose of BTC - to allow anyone to control their own wealth. Exchanges are perhaps the best candidates to inflate the actual BTC supply, social media comments echoed the initial argument. Currently, market operators claim to preserve bitcoin in their custodial cold wallets, while issuing a database entry to traders. Adding lending and margin trading, exchanges manage to increase the impact of the BTC and coins held in custody. Real, Accessible BTC Are Actually More Scarce Exchanges trade about 1.5 million BTC each day, representing a small part of the supply. OTC deals are harder to estimate. The bitcoin network carries between $4 billion and $300 million of transactional value per day, still a fraction of the total BTC market cap of $144 billion. At the same time, the supply of reachable, actual BTC coins, is somewhat diminished. Some of the coins that have never been moved belong to the initial blocks presumed to be mined by Satoshi Nakamoto. Some coins are locked beyond retrieval due to private key losses. Some coins have been seized by states and law enforcement agencies. Newly minted bitcoins may also be held back by miners, to be sold on a specialized OTC market for new coins. Rough estimates show that 30-50% of bitcoins may be out of circulation for some reason. So far, no one has tried to use the locked coins or claim ownership and issue IOUs. The only exception is Craig Wright, who claims to own the initial Satoshi Nakamoto stash, only without being capable of unlocking the coins himself. What do you think of the potential for BTC to inflate its supply? Share your thoughts in the comments section below! Images via Bitcoinist Image Library, Twitter: @ercwl The post Bitcoin (BTC) Supply Could ‘Expand Over 21 Million’ appeared first on Bitcoinist.com.

a year ago

Coinbase Users Can Now Accrue Interest By Holding USD Coin

Coinbase, the most popular retail cryptocurrency exchange in the United States, has announced that customers can earn 1.25% interest annually simply by holding the USD Coin (USDC) stablecoin in their accounts. Notably, Coinbase is a co-Founder of CENTRE, the organization which created USDC. This is similar to a regular bank, where users hold money in a savings account and earn annual interest. For example, Ally bank which has some of the highest interest rates, offers 1.9% per year for savings accounts. Generally, banks are able to offer an interest rate because they lend and invest money held in savings accounts. However, Coinbase says none of the USDC held in accounts will be lent or invested, making it unclear how exactly Coinbase is paying for the interest. Additionally, unlike banks, users on Coinbase will be able to see their interest profits accrue in real-time. Due to the law of compounding interest, this could lead to significant profits for users long term, especially since USDC is pegged to the USD and does not lose value due to market fluctuations. BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here. Follow BitcoinNews.com on Twitter: @bitcoinnewscom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Image Courtesy: Pixabay The post Coinbase Users Can Now Accrue Interest By Holding USD Coin appeared first on BitcoinNews.com.

a year ago

A bank chief says negative rates may be bad for banks, but good for society

The head of one of Europe’s biggest banks says (paywall) his peers should stop moaning about negative interest rates, which are seen as squashing profits for the region’s big lenders. “The banks in Europe are here to finance the economy,” said Jean Pierre Mustier, the president of the European Banking Federation (EBF) and chief executive of UniCredit. “We have negative rates today. So be it,” said Mustier, speaking as the president of the EBF at the lobbying group’s summit in Brussels. “Negative rates are for the purpose of society. Not against or for the banks.” Fearing economic stagnation, or worse, central bankers in Tokyo, Frankfurt, and Washington have spent years driving bond yields lower in hopes of boosting their economies and creating jobs. Lower yields are meant to cut the cost for businesses to borrow, and to induce investors to take more risk and extend money to enterprising companies, thereby boosting growth and employment. The European Central Bank is restarting its bond buying program, known as quantitative easing, or QE, as economic growth sputters. But when rates approach or fall below zero it can dry up the spread between the deposit rates at which banks borrow and the loan rates at which they lend out money. Net interest margin (Quartz member exclusive) is an important profit engine for lenders, and has given US banks more leeway to spend on technology and talent. Negative interest rates in Europe, meanwhile, are widespread and seem increasingly entrenched. Executives at some of European biggest financial institutions, such as Deutsche Bank CEO Christian Sewing, have protested the ECB’s policies. Even some officials at the central bank have complained; Sabine Lautenschlaeger resigned out of disapproval. At the EBF summit, Mustier pointed out that negative interest rates could also be helping the banking sector: Financial companies might be less profitable without QE because the economy wouldn’t be performing as well without it. Banks should make sure they are passing low and negative interest rates along to their clients, so that central bank policy is as effective as possible, he said. Mustier, who started his career at Société Générale in 1987, said it wasn’t for the EBF to comment on the amount of capital regulators expect banks to hold against losses. However, he reiterated from a previous interview with the Financial Times (paywall) that European banks are overseen by five watchdogs. He suggested that these overlapping entities may be requiring the region’s banks to hold more capital than lenders in the US, putting them at a disadvantage. Jean Pierre Mustier. “Do they compete with us in terms of financing mid-market clients in Europe? No,” Mustier said of US firms. “We compete with US banks for one very important thing—our price for capital from investors.” The UniCredit chief didn’t stop there. He noted that the big US banks are seen as American financial institutions—not as New York- or North Carolina-based firms—even though those cities are the headquarters for giants JPMorgan Chase and Bank of America. Mustier acknowledged that UniCredit, for example, is still seen as an Italian bank rather than a European one. In Europe, each national government is on the hook financially for containing the damage if a domestic bank goes bust (in the US, the federal government and the Federal Reserve mainly provide that role). Mustier suggested that the fragmentation is a disadvantage for European firms looking to raise capital from investors, who have to analyze the industry on a country-by-country basis. “We don’t have a banking sector,” he said. “The completion of the banking union is about making sure that the banking sector is one banking sector.” Paradoxically, however, Mustier said previously that he doesn’t favor a single European-wide system for insuring bank deposits. He told that Financial Times that such a setup would be politically difficult because countries are suspicious of it being exploited, as it could force one nation’s taxpayers to pay for losses in another. He also brought up the likes of Google, Amazon, and Facebook—or GAFA, as the French refer to them. When it comes to big American tech, Mustier said the rules for competition need to be rebalanced. Europe’s open banking regulations require financial companies to make make their customer data available to rivals if requested by the customer. As big tech companies edge into payments and other financial services, they could potentially request customer data from Europe’s lenders. However GAFA are under no obligation to make their data available to banks, Mustier said. “We need a fair and level playing field with the fintech, and also and more importantly with the GAFA,” he said.

a year ago

Another Doorway For Institutions? Prime Brokerage Services Are Coming to Crypto

Cryptocurrencies are continually evolving and adapting to a world where they are much welcomed. However, it is the world of investment and trading where they have indeed found a home. The cryptocurrency market has become a popular alternative on the rise, being tested against traditional ways and means. Cryptocurrencies started as merely digital cash-like tokens that allowed people to buy things on the internet. However, the popularity of Bitcoin and its astronomical price explosion in 2017 caught the attention of the traditional markets and enticed many investors to buy up the asset and hold on. That speculative accumulation of Bitcoin was one thing, but more advanced traditional traders started to realize that financial products and services could be well served in the space. Futures trading emerged from CME and CBOE in the USA, and while that side of the world waits for ETFs, there are options in the rest of the world to buy these types of cryptocurrency funds. Yet, the belief is that the majority of traditional investors and traders are still sitting out on the cryptocurrency markets for lack of familiar settings. One such missing aspect in the cryptocurrency is that of prime brokerage, which is limiting the development of the crypto trading sphere. The potential of prime brokerage It seems odd that the cryptocurrency market place has evolved so much and mirrored so much of the traditional space, yet still lacks prime brokerage. The idea of prime brokerage in the conventional markets sees a bundled nest of financial services that investment bankers and other major financial institutions - like Goldman Sachs - offer large investment clients. These larger investors often diversify and need to be able to borrow securities or cash in order to engage in netting to achieve absolute returns; this is where the prime broker comes in as a centralized point to allow for this diversification. Thus, some of the services provided under prime brokering include securities lending, leveraged trade executions, and cash management, among other things. With regards to the cryptocurrency market, there is clearly a place for overlap here as having a centralized point in order to effect different trades and investments in the space can be highly beneficial. Having single and direct market access to all tier-1 liquidity venues across different financial instruments, including tokens, futures, and other derivatives can empower clients in the cryptocurrency space greatly. There is a huge evolution of services in the cryptocurrency space which offer different levels of success, but bundling them together and having direct access to them can help multiply the gains achieved from single investment strategies. Of course, if one starts to expand this further and offer a prime brokerage service to institutions, the benefits start to have a dual nature. A new market can open up with a higher chance of success for institutions who want to tap this expanding and growing market. More so, the market gets a bigger boost of normalization and legitimacy by having such investors involved through traditional investment means, like prime brokerage. It is this potential gap in the market that TroyTrade has spotted. After raising $10 million in a private round from investment firms such as BlockVC, NGC Ventures, Consensus Labs, Bixin Invest and more - TroyTrade has developed a solution aimed at professional traders and institutional investors in the cryptocurrency space. The platform will provide crypto prime brokerage services for such institutional clients and professional traders with bevy trading products on a platform that can tap into vast liquidity, as well as being able to boast customer-friendly UX. Understanding its importance Recent news in the traditional markets can spell out how important prime brokerage can be. And, with the cryptocurrency market slowly integrating with these traditional ways and means, it is not a far stretch of the imagination to predict crypto prime brokerage being just as important down the line. In January this year, it was reported that big banks were throwing extra resources into prime broking, betting that their embattled hedge fund clients would provide a much-needed revenue boost as other areas falter. The Financial Times report added that despite hedge funds taking a pummeling over the last three months of 2018 in choppy market conditions, executives in the banks’ prime broking divisions that handle their trading and lend them money still expect the smartest managers to outperform. In fact, looking at 2018, the first quarter of that year saw prime brokerage revenues jump 20 percent to $4.9 billion for the largest investment banks. Prime brokerage is the fuel that hedge funds use to increase their trading activity - in so doing, increasing the revenues earned by prime brokers for giving up a balance sheet. TroyTrade has identified the power and potential of this trading offering and will look to

a year ago

Coinbase USDC Holders to Earn Interest (But Is 1.25% Incentivizing Enough Without Insurance?)

United States-based users of the popular cryptocurrency trading platform Coinbase will now earn interest on holdings of the stablecoin USD Coin (USDC). The exchange announced the new rewards program yesterday. The news comes via a Coinbase blog post, stating that holders of the Coinbase-backed USDC stablecoin will now be entitled to 1.25 percent APY. Starting today, eligible US customers will earn 1.25% APY rewards on every USD Coin held on Coinbase. Read more here: https://t.co/IqyStL1OPo pic.twitter.com/yhiAiN4tgw — Coinbase (@coinbase) October 2, 2019 The exchange will apparently pay the rewards on literally any amount of USDC held, and be distributed each month automatically. Interestingly, unlike recent the recent lending program rolled out by fellow exchange giant Binance, as previously reported by BeInCrypto, the Coinbase interest payments do not appear to be for the company’s immediate financial benefit. In the blog post, it writes: “Coinbase does not lend or manage your USD Coins. Your crypto is yours and always stays in your account. You simply earn while storing your crypto safely on Coinbase... Coinbase has no right to use any USDC you hold on Coinbase.” The post goes on to mention that USDC holdings are not insured as typical savings accounts would be. Neither the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation provides cover to the users’ funds on the exchange. Given that Coinbase appears to be receiving no direct financial reward, the new policy appears to be an effort simply to get people more familiar with using digital assets. Arguing that the USDC offers the functionality of a cryptocurrency while being stable enough to use as a medium of exchange, Coinbase writes: “Save where you trade. It takes four to five days to transfer between your bank and typical crypto brokerages, when you want to switch between saving and trading. Now you can do both in the same place on Coinbase, instantly.” On one hand, the company’s new rewards system is attempting to disincentivize users from ever going back to fiat currency. On the other, the more cynical onlooker might draw attention to the fact that the rewards program is directly incentivizing the use of a very pale imitation of properly decentralized cryptocurrencies, like Bitcoin. Upon receiving the Coinbase news, some responded by drawing attention to the rather low-interest rate compared to some similar offerings by other cryptocurrency startups. Indeed, at 1.25 percent, the interest rate offered by many federally-insured bank accounts trump that of Coinbase. Although it is still higher than the apparent U.S. national average of 0.9 percent, NerdWallet lists a total of 14 savings accounts (some by household names) that offer more than two percent APY. Given that the Coinbase service only offers 1.25 percent APY, will people find the rate enticing enough to take an entirely uninsured bank-like service from a much lesser-known company than the likes of Barclays or HSBC? Why do you think Coinbase has introduced this rewards program in the US? Do you think it will roll out similar elsewhere? Please leave your comments below. Images courtesy of Twitter, Shutterstock. The post Coinbase USDC Holders to Earn Interest (But Is 1.25% Incentivizing Enough Without Insurance?) appeared first on BeInCrypto.

a year ago

How to Create an Anonymous Digital Identity Using Cryptocurrency

If you could go back in time and do the internet all over again, what would you change? Would you think twice about joining Facebook, decline to upload those fancy dress photos from ‘09 and delete that rhetoric-laden blog post instead of hitting ‘Publish’? It’s too late to undo the mistakes of the past, but it is possible to start afresh by creating a new online identity using privacy tools and cryptocurrency. Here’s how. Also read: No Victim, No Crime: How the Darknet Drug War Is Ruining Young Lives How to Disappear (Almost) Completely Disappearing in real life is hard. It calls for giving up your friends, family, and favorite places. It means changing your name, documents, ID, employer, and location. It’s a virtually impossible task, which is why so few people achieve it. Criminals who go on the run rarely last long; they’re usually busted by a phone call home or an inability to blend into their new surroundings and keep a low profile. The internet, though, is different. As the adage goes, on the internet, nobody knows you’re a dog. But what if you tired of being a dog and decided you wanted to reinvent yourself as a cat, bear, or anonymous panda? Today, all the tools exist to do just that: retire your public profile and emerge, reborn, like a butterfly from a cocoon. To live life in technicolor, first you have to go dark. Quick tips: 1. Buy(or earn) without kyc: bisq, hodlhodl, mining. 2. Coinjoin often, especially if you do KYC.3. Control your own keys. My favorite hardware is coldcard, consider multisig. 4. Use your own full node.5. Use VPNs & Tor. Great wiki here: https://t.co/N3FAtLzPU6 — Matt Odell (@matt_odell) September 24, 2019 A Life Worth Living Twice This article is intended as a guide for how a person might start afresh online, using encryption, anonymity tools, pseudonyms, and cryptocurrency. It’s not a blueprint to follow meticulously, and it’s not going to be for everyone. Remember how bitcoiner Jameson Lopp took extreme measures to conceal his real life whereabouts, while maintaining his real name on the web? Well, this is basically the reverse of that. Even if you’re not intent on retiring your public persona and starting from scratch, there are tools and techniques contained herein that everyone - cryptocurrency users especially - can use to reclaim some privacy. We were free and easy with the information we shared online in the early aughts because we didn’t foresee the compliance-crazy, language-policed, blockchain-surveilled panopticon we now inhabit. Who knows what the AI-powered internet of the future will look like, but it’s a safe bet it will be a distinctly less private one. The steps you take now to bolster your pseudonymity could pay dividends further down the line. Step 1: Pick Your Persona While it’s possible to operate as more than one persona on the web, complete with multiple Twitter accounts, business profiles and emails, it’s a mission best left to the spooks. Assuming a single pseudonym allows you to be yourself, minus the real name. Trying to run two or more identities in parallel is fraught with risk, and you’re never more than a misplaced message away from blowing your cover. Crypto Twitter is full of anon accounts, some of whom have maintained their cover for years, while operating full-time in the cryptosphere as professional traders, shitposters, writers, token economists, and project advisors. Which brings us onto our next step... Step 2: Pick Your Profession While there’s nothing stopping you from working a 9-5 at Starbucks while larping as a gender neutral unicorn on the web, the beauty of living today is that you can work remotely, and be handsomely remunerated without needing to disclose your real name, address or social security number. There are numerous industries where this is achievable, but tech - and crypto in particular - are ideal. Aside from the obvious benefit of getting paid in digital currency, crypto is a sector where what you can do is worth a lot more than who you are. If you’re a proficient programmer, your Github commits are the only validation your username needs. If your code checks out, you won’t struggle for work. For programmers just starting out, responding to bounties on Gitcoin is a good place to show your skills and earn some digital crumbs. Other jobs that lend themselves well to aspiring anons include copywriting, video editing, graphic design, and web development. Step 3: Set Your Privacy Level Privacy exists on many levels, and unless you’re performing something illicit like operating a darknet marketplace, you don’t need to obsess over opsec. For most people, privacy can be categorized into consumer and professional levels, with the latter describing anyone who wishes to hold down an online job anonymously. Consumer-grade privacy: Use a pro-privacy web browser, disable trackers, consider using encrypted email, limit your reliance on crypto platforms that require KYC, and mix your coins before sending them to long-term s

a year ago

Trump Pressures Fed for More Rate Cuts as Mega Banks Drain the Balance Sheet

U.S. President Donald Trump is pressuring the central bank to cut interest rates even further as a spike in oil prices has offset the Federal Reserve’s ‘normalization’ tactics like rate-cutting and overnight repos. Additionally, the mega bank JP Morgan Chase (JPM) is being blamed for the lack of liquidity in the repo market’s cash reserves, as JPM’s recent reduction move accounted for a third of the Fed’s bank reserves for Q3. Also Read: Central Banks in Panic Mode - Extreme Tactics Like Helicopter Money Discussed Trump Calls the Fed’s Easing Tactics “Pathetic” Central banks are in a state of panic. No matter what they do, the economy is not being guided well by their easing tactics. In the last few months, at least 19 central banks have started participating in monetary easing practices in order to combat what’s called “stagflation.” The term refers to a period of slow economic growth combined with rising prices across products and services worldwide. The U.S. Federal Reserve has just started cutting rates and conducted spot repo operations to stimulate the economy. President Donald Trump has been pressuring Fed Chairman Jerome Powell and the central bank’s board members to cut rates even further. The Fed has already printed $128 billion in mid-September and added another $63 billion in collateral on the Q4 balance sheet last minute. Jerome “Jay” Powell, the 16th and current Chair of the Federal Reserve (left) and U.S. President Donald Trump. On September 11, Trump said: The Federal Reserve should get our interest rates down to zero, or less, and we should then start to refinance our debt. Interest cost could be brought way down, while at the same time substantially lengthening the term. We have a great currency, power, and balance sheet.” Trump says the prior rate cuts have not helped the U.S. dollar regain strength and he wants the Fed to chop rates as soon as possible. “As I predicted, Jay Powell and the Federal Reserve have allowed the dollar to get so strong, especially relative to all other currencies, that our manufacturers are being negatively affected,” Trump tweeted on October 2. “[The] Fed rate is too high — They are their own worst enemies, they don’t have a clue — pathetic.” However, not everyone agreed with Trump and the well known gold investor and economist Peter Schiff told Trump he was wrong. “You’re the one who’s pathetic,” Schiff replied. “The U.S. dollar index was slightly higher on the day you took office than it is today — Your trade policies and the growth of government spending and deficits that you support are hurting manufacturing — The Fed actually did more damage under Obama,” Schiff added. However, Trump is in full support of his trade war, the current monetary easing tactics, rate cuts, overnight repos, and he seems to want a lot more. Trump emphasized last month that “the U.S. should always be paying the lowest rate.” Many pundits like Schiff and other economists blame Trump’s trade war with China for the economy’s problems. The pressure from Donald Trump has many economists thinking that more rate cuts will be implemented in October. For instance, CME Group’s Fed Watch tool shows there’s a 64% chance that the Fed will cut rates by another quarter-point during the October Federal Open Market Committee (FOMC) meeting. CME’s tool uses the futures market prices in order to determine how the economy is doing. A good example of CME’s metrics in use is the U.S. manufacturing purchasing managers’ index, which dropped to a low of 47% last month. The manufacturing index has not dropped that low since 2009 after the financial crisis was in full swing. However, these days financial experts don’t think the Fed’s small rate cuts will even help and many believe Trump’s trade war with China is the main issue. U.S. rates strategist at BMO Capital Markets Jon Hill blames the trade war. “Clearly the trade war and strong dollar continue to weigh on domestic goods producers,” Hill explained in a note to investors on Tuesday. “Given this, one has to wonder how impactful incrementally lower rates may or may not be.” Trump’s Trade War Timeline according to the Peterson Institute for International Economics (PIIE). Mega Banks Like JP Morgan and Bank of America Are Becoming Too Big to Lend In addition to the theatrics between Trump and the FOMC board members, JP Morgan Chase (JPM) is being scrutinized for creating a massive repo market spike. Researchers have attributed JPM’s $2.7 trillion balance sheet to the jump in repo operations in mid-September and repurchase agreements jumped as high as 10%. Before the Fed’s overnight repos, publicly filed data shows that JPM removed a great portion of cash on deposit held by the Fed by 57%. Reuters reports that the demand for overnight Fed-induced cash exceeded the supply on September 17. JPM wasn’t the only culprit as another mega financial giant Bank of America (BoA) and its $2.4 trillion balance dropped 30% ($29 billion) of its deposits. An unnamed execu

a year ago

Op Ed: Bitcoin and the Dawn of the Negative Interest Rate Era

On the morning of Monday, September 15, 2008, at 6:55 a.m., I arrived at my turret on the trading floor of a Manhattan-based hedge fund and flipped on my Bloomberg terminal. As the head of trading, I was in the habit of looking at sovereign debt markets before checking our positions from the previous trading day. But on this morning, reviewing world bond markets took on a particular urgency. Lehman Brothers was filing for bankruptcy and the entire world was in the throes of the worst financial crisis in 75 years. What I saw was that, all over the world, short-term debt markets — “bills,” in industry parlance — showed negative yields. In virtually every industrial nation, firms and individuals were seeking the safety of the printing press, effectively handing $100 to governments for the assurance of receiving $98 in four weeks. This was, of course, a brief moment in time within a highly liquid and mostly unhindered financial market. Rather quickly, the classic shape of the yield curve returned. Fast-Forward One Decade Currently, the Danske Bank of Denmark is in the process of introducing the first negative 10-year fixed-rate mortgage. In recent weeks, the German Finance Ministry has voiced disappointment at the lack of demand for 30-year zero-coupon bonds. And with early anticipation of a recession, the U.S. and Sweden are contemplating issuing half- and full-century bonds, even as the U.S. president is urging the Federal Reserve to lower rates by 100 basis points, back to all-time low levels. The European Central Bank’s Governing Council believes that inflation is too low, growth is anemic and prospects are bleak. It appears that by the end of October 2019, the deposit rate will be minus six-tenths of 1 percent and the refinancing rate minus two-tenths of 1 percent. Like it or not, we stand at the dawn of the negative interest rate world. Convinced of the necessity to inflate, irrationally fearful of deflation and, in any case, eager to add a new tool to their policy armamentarium, central bankers are — both in peer-reviewed journals and less formally — embracing the idea with gradually increasing interest. Early experiments, such as those previously mentioned, are underway. Blunting the Market Process Market processes are social processes, and human beings are fundamentally economic actors. Econometric modeling and hopeful theorizing set aside, people are temporal beings for whom present satisfaction is preferred to future satisfaction. Interest rates are nothing less than the memorialization of this. However, an implication of a negative natural rate of interest would be that, given a choice between receiving $100 today or receiving $10 one year from now, economic actors would (ceteris paribus) choose receiving $10 in one year. Thought of another way, the natural, positive interest rate is a forbearance discount; a spread or value adjustment of sorts, comparing the current assessment of a later desire with an earlier desire. Although this comparative rate may change — it may steepen or flatten, even invert at times — it is always and everywhere positive. It doesn’t disappear, and it never goes negative. Positive, temporally rising interest rates are a function of the intersection of infinite desire, limited availability and mortality. Negative interest rates are a corruption of economic calculation. An Invisible Subsidy On a grander scale, under a negative interest rate regime, many firms and projects which would have failed under normal, positive rates of interest will continue to operate. The commercial failure and liquidation which, to no small extent, central banking policies seek to prevent, in fact (and however painfully), frees up capital for new firms and projects, all of which keeps innovation vibrant and rewards the most efficient stewards of capital. By delaying or thwarting the forces of creative destruction, negative interest rates — not unlike their less radical cousin, artificially low interest rates — bring about a dearth of investment and lack of opportunity. Market signals are confounded, and economic growth inevitably suffers. When negative interest rates are introduced, technocratic sleight-of-hand will undermine market-based processes — not least of which, entrepreneurial alertness. Interest Rates Coordinate Savings and Investment And interest rates do more than simply influence rates of saving and consumption. A major mistake in this policy making worldview is the treatment of the interest rate as primarily, or exclusively, a yoke or accelerator on “spending.” In fact, interest rates coordinate investment, production and consumption decisions over time, ranging from the heaviest consumption goods to the simplest consumer goods. Individuals and firms make choices based upon prices which are, in turn, influenced by financing. Those choices en masse send signals to producers throughout the economy regarding shifts in tastes and preferences. There are, as with all central planning ini

a year ago

InstaDApp DeFi Startup Raises $2.4 Million From Pantera Capital and Coinbase Ventures

The decentralized finance (DeFi) startup InstaDApp, which offers a digital banking portal for DeFi protocols, has successfully raised $2.4 million in seed funding from several prominent crypto investors including Pantera Capital, Coinbase Ventures, and Naval Ravikant. InstaDApp enables users to manage and monitor their Ethereum-based assets through a non-custodial platform, allowing them to borrow, lend, swap, and leverage their assets through various decentralized finance protocols (DeFi) like Uniswap, MakerDAO, and Compound. InstaDApps is one of the more popular projects in DeFi with more than $34 million held in InstaDApps' smart contract. (JF)

a year ago

DeFi portal InstaDApp raises $2.4M in seed funding

InstaDApp, a digital banking portal for DeFi protocols, has raised a $2.4 million seed round from investors including Pantera Capital, Coinbase Ventures, and Naval Ravikant. InstaDApp enables users to manage and monitor their Ethereum-based assets through a non-custodial platform. On InstaDApp, users can borrow, lend, swap, and leverage their assets through various decentralized finance protocols (DeFi) like Uniswap, MakerDAO, and Compound. InstaDApps is founded by brothers Samyak Jain and Sowmay Jain. According to a blog post by Jain, the brothers were active participants in the Indian financial ecosystem. The brothers eventually dropped out of school to build products for DeFi. "We have been living and breathing crypto and DeFi for almost our entire formative lives, including accepting grants, doing payrolls and financing our expenses from ETH backed collateralized loans," the blog post reads. The popularity of InstaDApps among Ethereum users has helped propel the project to the top of the leader board on DeFi ranking site, DeFi Pulse. According to the site, InstaDApps' smart contract holds $34 million in ether.

a year ago

Fighting a Losing Battle: Federal Reserve Prints Another $63.5B This Week

The repo rate made the headlines again at the end of September. The overnight general collateral repo rate jumped about 1% during the weekend, from 1.85% on Friday to 2.8% on Monday. The Fed now has to inject billions to keep the market under control. Repo Market Explained The fiat currency market proves its instability again after the repo rate shows dissonance with the Fed’s interest rate. For those unfamiliar, the repo market is where the big banks borrow money overnight in exchange for low-risk collateral such as treasures and securities. Note that these operations are short-term and allow banks to stay liquid day-to-day. Generally, the bank that borrowed funds returns the cash the next day, obviously at an interest - this is the rate that we call the repo rate. We used to think that the repo rate is traditionally below the Fed’s usual interest rate. The latter refers to the rate at which banks lend reserve balances to other banks overnight but on an uncollateralized basis. However, even though the repo market operates with low-risk collateral, banks full of cash hesitated to lend anyway, causing a liquidity shortage and boosting the repo rate up and above the Fed’s rate. Why aren’t the banks willing to lend their cash? Well, it might be related to the fact that the banks are about to meet their regulatory reporting deadlines or even because they don’t regard treasuries as risk-free collaterals anymore. To understand the scale of the problem, think about the fact that the repo rate hit 10% on September 17. Note that the normal rate would be below 2.3%. That spike threatened to destabilize the whole bond market and the financial system with it. Fed Comes to the Rescue The Fed has carried out special operations to inject cash in the repo market since the beginning of September. It has done so for the first time since the financial crisis in 2008, showing the seriousness of the problem. If you wonder what does it have to do with the crypto world, you should understand that the fiat industry is losing its credibility. The Fed is forced to print money out of thin air to reach its interest rate target. As mentioned above, the repo rate has jumped again in the weekend, so the problem is not quieting. Fed’s Injections of Billions Become Norm In fact, the situation is so tricky that the Federal Reserve might make this “extraordinary” money intervention a permanent solution. John Williams, head of the New York Fed (the most important branch of the Fed) told the New York Times that the central bank might implement an ongoing facility for the repo market. “We are seeing that liquidity doesn’t move around as easily in these situations, which means that if we want interest rates to stay kind of on their own in a narrow range, that we have to make sure we have that amount of reserves to support that,” he said. The crypto community is shocked by the amount of money the Fed has injected so far. I've lost count of how much money the NY Federal Reserve has injected into the financial system over the last two weeks. — Pomp (@APompliano) September 30, 2019 While any instability in the financial market is good for the crypto adoption, an increase in USD liquidity might also result in short term decline in the price of Bitcoin and altcoins. This actually happened during the last month. Do you think the fiat currency market will experience dramatic changes soon? Share your expectations in the comments section! Images via Shutterstock, Twitter: @APompliano The post Fighting a Losing Battle: Federal Reserve Prints Another $63.5B This Week appeared first on Bitcoinist.com.

a year ago

Want to lend assets on @compoundfinance directly from your A...

Want to lend assets on @compoundfinance directly from your Aragon Vault? Or leverage your organization's ETH holdin… https://t.co/CZoHbKOl1b

a year ago

Nuo Network introduces new crypto margin trading features

Nuo Network introduces new crypto margin trading features - CryptoNinjas Nuo Network, a non-custodial way to lend, borrow or margin trade cryptocurrency, today announced the release of its newly updated margin trading platform that better understands the needs of new traders and provides them the most useful information when operating the Nuo app. On Nuo Network, users are able to trade with up to 3x Nuo Network introduces new crypto margin trading features - CryptoNinjas

a year ago

The ‘Queen’ Begins Bitcoin Phishing to Save the UK Economy

Would you like to lay claim to the fortune of an ailing heirless Nigerian prince? How about becoming a partner in a multi-billion dollar business originating in some obscure, unheard-of country? If all these tricks sounds familiar, then you are among the millions of people worldwide who have been attacked by some of the most common email scams around. Now, another similar scam appears to be making the round—this time in the form of a letter impersonating Edward Young, the private secretary to Queen Elizabeth II. The latest addition to this list of tech-based scamming techniques is being propagated through a medium that less commonly used by scammers nowadays; snail mail. That’s right, according to Paul Ridden, an unknown attacker is actually mailing out letters claiming to be from Buckingham Palace. Does This Seem Fishy to You? The letter opens by mentioning that in order to save the British economy, the queen is reaching out to a select few individuals that can lend the royal house sums ranging between £450,000 and £2,000,000. The money would apparently be used to ‘save and sustain the UK’s economy after brexit.’ According to the poorly written letter with abhorrent grammar, those that agree to lend money would enter into a contract where the crown would pay them 30% interest on the principal amount for a period of three months. As a bonus, lenders might also be able to join the Royal Warrant Holders Association—a list of companies that supply goods or services to the royal family. Toward the end of the document, the scammer makes it clear that they want the offer to remain completely anonymous since it could “affect the agreements we have in order to obtain the bilateral agreement.” Following this ‘Young’ requests payment to a bitcoin address, and promises to send a contract over once the funds are received. As of writing, the Bitcoin address ‘1sycBKECFgPBD3EiaTCcD2VCeobr8DrpD’ has only received nominal amounts, indicating nobody has fallen for the poorly executed scam. Only an Idiot Would... With the increasing use of the internet and email, almost every individual online has been exposed to some form of an internet scam attempt. In order to protect individuals from such attacks, email service providers usually employ a number of security checks that automatically detect such scammy emails, before moving them to the spam folder. Unfortunately, the physical door in the real world is deprived of any such security measure and remains as the most vulnerable target for such similar social engineering scam attempts and phishing attacks. However, such attempts are rare nowadays, likely due to the costs involved with mailing hundreds of unsuspecting victims. This particular phishing attempt was brought to light by Paul Ridden, the CEO of Smarttask, a UK based technology and management firm. Commenting on the incident after posting about it on LinkedIn, Ridden said: “I always had the feeling that she would turn to me in an emergency to save the country.”—in reference to the queen. Nevertheless, although this attempt is painfully obvious to most people, such scams have been known to claim some victims. Because of this, it is wise to stay vigilant when receiving such ‘offers’, since these can be far more sophisticated and elaborate scams than the aforementioned. One example is the Tron-scam scenario from earlier this year that BeInCrypto reported on. What is the most ridiculous Bitcoin scam attempt you have ever seen? Let us know in the comments below! Images are courtesy of Shutterstock. The post The ‘Queen’ Begins Bitcoin Phishing to Save the UK Economy appeared first on BeInCrypto.

a year ago

Binance Launches Staking Platform with Support for 8 Cryptocurrencies

Binance, the world’s leading cryptocurrency exchange, announced the launch of its staking platform allowing its users to earn their staking rewards simply by depositing their funds on the exchange. Staking is an essential part of maintaining proof-of-stake (PoS) networks and grants stakers rewards based on their contribution to network stability and security. Some PoS networks even use the staking mechanism for on-chain governance. Staking on Binance Made Easy Binance, as one of the exchanges with the deepest liquidity pools for cryptocurrencies, now allows users to earn rewards for simply depositing and holding assets on the exchange. The staking platform will guarantee a fair distribution of rewards by taking hourly snapshots for user balances on the respective staking blockchains. Binance is making it very easy for users to stake, with no additional input from users and no minimum staking amounts. Rewards will be distributed at the end of the month, according to CEO Changpeng Zhao. Staking service @Binance. You literally don’t have to do anything. Your funds on Binance automatically participate. You can still trade as you normally would. Keeping it simple!https://t.co/CR0Fqpde6d — CZ Binance (@cz_binance) September 27, 2019 Right from the start, the staking platform will support eight cryptocurrencies: NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VET/VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), & Stratis (STRAT). While Binance already had a system in place that distributed rewards for some assets like NEO, ONT, and VET, one inclusion that catches the eye is ALGO, which was recently launched and listed on multiple exchanges. On the Binance staking platform, ALGO holders will earn an estimated 12%-14% annual yield. However ever since launching, Algorand’s token price has been in a down-trend falling more than 80%. Exchanges to Squeeze out Staking Businesses? While the staking platform from Binance is an adapted model of the staking-as-a-service business, it still is a direct competitor. With cryptocurrency exchanges providing all-round services for cryptocurrency earnings, businesses that rely solely on the staking-as-a-service model might find themselves in a difficult position, as users gravitate towards the comprehensive offering of exchanges. Earlier this year, Coinbase was one of the high profile exchanges that also added the staking feature to its Custody product, wherein institutional clients are able to stake their Tezos (XTZ) assets. As one of the top PoS cryptocurrencies, Tezos staking should be available on Binance relatively soon, as hinted by CEO Changpeng Zhao. While its staking service is only rolling out, Binance already allows its users to earn interest on their cryptocurrencies through Binance Lending. Initially, users can lend BNB, ETC, and USDT, but the exchange plans to scale up and will add lending support for more assets in the future, and have already added privacy coins as BeInCrypto has previously reported. What do you think of staking on exchanges? Is it a more convenient option that will convince stakers to move assets on an exchange? Let us know in the comments! Images courtesy of Twitter, Shutterstock. The post Binance Launches Staking Platform with Support for 8 Cryptocurrencies appeared first on BeInCrypto.

a year ago

Mapping out the blockchain ecosystem in London

London is one of the oldest and largest financial centers in the world, and the UK as a whole is the world's largest net exporter of financial services. Blockchain technology's arrival on the scene has brought new innovations to London's well-established financial realm, paving the way for a host of new blockchain companies. These companies run the gamut with the services they provide, and new ones spring up with some regularity, resulting in a vibrant and active blockchain ecosystem. With its storied history as a global financial hub, London has been a natural fit for blockchain related startups. This becomes apparent when looking at the number of blockchain companies that are either headquartered in or at least hold an office in the city. The Block has mapped out a total of 91 firms in London across 15 sub-categories that are working to bring innovation through blockchain technology or cryptocurrencies. Trading & Exchanges Skew is a market for cryptocurrency derivatives Quanterium is building a trading platform for digital assets Vega is a decentralized protocol designed for trading and executing financial products Archax is an exchange for trading digital securities Bitstamp is a cryptocurrency exchange Coinbase is an exchange for cryptocurrencies eToro is a platform that offers investing in stocks and cryptocurrencies Huobi is a Chinese cryptocurrency exchange with an office in London jumptrading is a proprietary trading firm that executes trades for its clients such as Robinhood, and is an OTC trading platform for digital assets Crypto Facilities is an exchange and index provider. *Crypto Facilities has been acquired by the exchange Kraken. Kraken is a cryptocurrency exchange that acquired London-based futures startup Crypto Facilities for $100 million. Circle is a platform where users can use, trade, and invest in digital assets Cobalt FX is a distributed ledger for the foreign exchange market Luno Exchange is a Bitcoin exchange and wallet Tradeix is using blockchain technology for trade finance Coinrule is an automated trading platform Investment Firms Prime Factor Capital is a crypto hedge fund Libertus Capital, a venture capital firm, invests in protocols and blockchain companies ConsenSys, based in Brooklyn, provides capital to companies and protocols building on the Ethereum network (Notable investments: Grid+, MetaMask, Gnosis) Fabric Ventures is a Venture Capital Fund that invests in blockchain and “Web 3.0” technologies KR1 is a digital asset investment company Cambrial Capital is a investment firm using a fund of funds strategy on digital assets Hummingbird Ventures is a venture capital fund for digital media and software companies that has also invested in blockchain startups Balderton Capital is an early-stage venture capital firm that invests predominantly in technology companies Index Ventures is a venture capital firm that investments in technology companies Entrepreneur first invests in individuals to help develop their tech-focused ideas and turn them into companies Firstminute Capital is a seed fund based in London Accel Partners is a venture capital firm Speedinvest is a venture capital firm that invests in early-stage technology companies Banking & Payments jita is a micro credit platform for enhance microfinance Cygnetise is a decentralized application for managing signatory lists and bank mandates wirex is a payment platform with multi-support for digital assets and traditional currencies BitPesa is a foreign exchange and payment platform in Africa, with offices in London Monolith (tokencard) is a decentralized banking alternative built on Ethereum Setl is a financial services company focused on blockchain based settlements and payments Cashaa is an online banking platform where users can manage their traditional currencies and digital currencies Knabu is building a fiat clearing bank for the cryptocurrency ecosystem Babb is a peer-to-peer banking service for the micro-economy Thought Machine is a blockchain-based banking system Other Paxos Standard is a stablecoin fully collateralized 1:1 with USD, issued by a regulated trust company Codex Protocol is a decentralized registry for art and collectibles Fun fair is using blockchain technology for casino gaming Edge network is a distributed computing platform for data storage Zinc is a blockchain based advertising protocol Mintbit offers educational and advisory services on blockchain technology Blokur is building a platform for music publishing data Nia Technologies is a meant to be a decentralized platform for renting Investing Mattereum hopes to create on-chain smart contracts where physical assets can be programmatically bought, sold, rented, assigned, and partitioned Commerceblock has built a platform for the distribution, exchange, and storage of tokenized assets and securities Nivaura is a blockchain based company focused on automating the middle and back end process for issuing new debt and equity deals BC B

a year ago

Max’s Corner: après moi, le déluge, or what to make of the repo bailout

If you’re tuned into the workings of the financial market you may have noticed that the Fed stepped in this past week to bailout the repo market. This is the first move of its kind — the government stepping in to bail someone out — since 2008. The repo market is one of the key structures supporting trad finance. This market exists so that banks and lenders are able to have the liquidity necessary to perform their everyday trading activities. The way the repo market works is that banking and Wall Street big guns offer up US Treasuries and other assured assets as collateral to raise capital so that they can lend money or trade on a day-to-day basis. The bonds are usually only laid down overnight and then repoed or purchased back the next day with minimal interest. There is about $1 trillion worth of business being conducted on the repo market everyday, and the interest rate is usually in the area of the Federal Reserve’s benchmark overnight rate, but when there is not enough liquidity in the system or when banks are wary of lending it makes the repo rate soar. This is what happened in the global financial crisis ten years ago. A high repo rate can cause problems for the global economy. Without an easy means of lending and raising capital, institutional trading is liable to to get impeded in its functioning, and if the impediment is extended it can trigger a wholesale recession. When the great recession happened ten years ago, the borrowing rate shot up exponentially. As part of the massive government bailout, the Fed cut rates to near zero and bought over $3.5 trillion in bonds. The low rates were maintained until 2015, when the Fed, sensing that the recovery was firm, decided to raise interest rates and slim its bond portfolio. This produced a spike in borrowing rates and a drop in reserves which, despite the fed changing course and re-lowering its rate, reached a boiling point this past week. Borrowing rates on overnight repo loans rose to as high as 10%, more than four times the Fed’s recommendation, as trading funds dried up across the board. With grim financial consequences for the global economic system in the balance — should the rate hike continue in its trajectory — the Fed stepped in and made emergency injections totalling $278 billion so that the big banks had enough cash on hand to continue with their daily lending and trading procedures. This is the first time the Fed has engaged in such active, preventative measures since the bailout that saw the interest rate sink so low. The question most trad finance analysts have now is, is it enough? The injections are significant both due to their size and what they signify, namely that the market is in a precarious position. There are enough signs of a downturn that the Fed thought it was necessary to act, and to act swiftly. Fed officials tried to downplay the injections as a response to a liquidity aberration that resulted from a concatenation of circumstances in the bond markets and corporate tax payments. But the problem with this line of reasoning is that the circumstances just keep on concatenating; there are other troubling economic signs that can’t simply be dismissed, among them the trade deadlock with China, Wall Street jumpiness over possible impeachment proceedings and $17 trillion in bonds showing returns in the red. There have been chatterings of something big coming. Global recession big. But this is not really surprising to many in the crypto community. At least not to those of us who are in it for more than just making a quick buck. The fact that the financial stability of the globe is propped up by an overnight, white-color pawn shop that can simply stop working due to circumstance is very telling. After losing the Battle of Rossbach in 1757, King Louis XV of France is said to have remarked “Après moi, le déluge,” which has become a proverbial expression meaning “after me, let the deluge come.” This is the attitude that fuels the wild speculation of Wall Street and global finance. Everyone knows that someday all of these riches, all of this material abundance, the excess — someday it is all going to come crashing down. It wasn’t that long ago when fissures in the foundation of the system became visible, and yet it is still portrayed as being too big to fail. By now we should all have come to grips with the fact that the only people for whom the system is too big to fail are the people profiting off of it the most. As long as these people get theirs, the hell with all the rest of us. Crypto was born out of disgust with that attitude and intended as a corrective measure to reground finance. Cryptocurrency was about responsibility, specifically reestablishing it as an alternative to reckless speculation. Ironically, it has been labelled a threat to financial security. At this point what isn’t a threat to global financial security? A gust of wind could topple this tight-rope act. What we at Bytecoin and other like-minded people

a year ago

IEOs You Should Keep Your Eye on in Q4 2019

When the crypto movement first took root in 2017, initial coin offerings (ICOs) were the primary way that interested investors gained access to new digital assets. However, times are changing, and, while ICOs remain indelibly popular, many investors are turning their attention to a different option: initial exchange offerings (IEOs). These token offerings are similar to ICOs, but, rather than being sold directly by a company, they are offered on exchanges. As a result, they bring the vetting and credibility of the exchange to bear on the digital assets that are offered. Even Coinbase, the most mainstream and popular exchange application, is getting involved, offering IEOs to its 30 million users. As with any popular product, choosing the one that’s right for you can be a challenging decision. Here are four IEOs that you should keep your eye on as we approach Q4 2019. #1 Binance & Huobi Offerings Binance and Huobi, two of the most prominent cryptocurrency exchanges in the world, are at the forefront of the IEO movement, with new products continually coming to market. However, interested investors need to remain vigilant about these offerings, as the platforms are only giving users a few weeks notice about new projects, meaning that the most involved users will have the first opportunity to participate. So far, these products are performing very well. For instance, Matic, the fourth IEO offered on Binance’s Launchpad platform, brought in $5 million for the company, and the token price increased by more than 400% after the sale. Other projects have sold out in seconds, creating an incredible demand for IEOs. Consequently, interested investors should stay abreast of the recent announcement, and they should ensure that they complete pre-IEO requirements before the tokens go on sale. #2 QAN QAN is an enterprise-grade blockchain project that imbeds key features for security and scalability into a platform that is both capable of meeting the needs of today and the expectations of tomorrow. For instance, the platform is quantum-resistant, offering long-term protection against quantum computing that threatens the future resilience of other blockchain projects. In addition, the platform features fixed transaction prices and multi-programming language support that offers enterprise developers the flexibility to program smart contracts in the languages with which they are familiar. The platform is powered by the QARK token, a utility token that facilitates the blockchain’s ecosystem. In total, QAN has 333,333,000 QARK available, and ⅔ will be for sale on BitBay during the IEO, which begins on October 2019. #3 Azultec Alzutec is striving to become the biggest CGI rendering farm, and they are using cryptocurrencies to incentivize users to lend their computer power to this initiative. Their product, The Azultec Cube allows users to earn cryptocurrency in an energy-efficient and affordable way. Their cryptocurrency miner is liquid-cooled and is equipped with a hard drive that can function as a decentralized cloud storage solution, and users can share their storage space to earn more cryptocurrency. Finally, the product can be used to take on decentralized rendering projects that produce another income stream for owners. The Azultec ecosystems token AZU, is available as an IEO on Shortex with prices starting at $0.024. Conclusion Cryptocurrency products continue to abound, receiving significant interest from both individual enthusiasts and institutional investors. With IEOs representing one of the most promising access points to these new tokens, interested investors should keep their eyes open to the latest offerings and decide which projects might be of interest. With many IEOs moving quickly, it’s critical that investors do their homework before a project launches, giving them the best opportunity to get in on the ground floor of the latest crypto innovations. Ultimately, IEOs aren’t the only on-ramp to digital assets, but they are increasingly popular, and the process is worth a look for those looking for an edge in today’s fast-moving decentralized environment. Disclaimer: Every Crypto Trading and Investment Activities Involve Risk. You should always conduct your own independent research before investing in any IEO. This Article Is Provided For Informational Purposes Only And Shouldn’t Be Taken As Finance Advice. The post IEOs You Should Keep Your Eye on in Q4 2019 appeared first on ZyCrypto.

a year ago

Did US FED Repo Transactions Cause Bitcoin Price Crash?

Whenever Bitcoin prices fall off the cliff industry observers scramble to find a reason beyond the technical indicators. Something fundamental must have caused the crash and one industry executive has fingered the FED’s recent market meddling. FED Repo and Bitcoin Related? Last week the US Federal Reserve pumped more than the entire crypto currency market capitalization back into money markets in order to control lending rates. A surge in short term rates last week threatened to disrupt the bond market and the overall lending system which resulted in these overnight repurchase (repo) agreements. Those cash injections have continued into this week as a further $100 billion floods into markets. According to an official statement the central bank’s schedule calls for another $75 billion of overnight repos to be sold every business day until October 10. Certain days will also be offering at least $30 billion worth of 14-day repos. The FED appears to be back where it was roughly a decade ago, effectively buying US Treasuries from banks on an indefinite basis. According to a Bank of America research note; “For all intents and purposes, this will be equivalent to QE, with scheduled purchases of securities. We estimate that over the first year, the Fed would need to buy roughly $400bn of Treasury securities to achieve an appropriate level of reserves, plus a buffer,” The ‘repo market’ consists of short-term funding that banks and financial counter-parties regularly tap to lend each other trillions. It is making the news again for all the wrong reasons and is looking a lot like it did just before the 2007 housing market crash. This week Bitcoin prices dump 20 percent as $30 billion flooded out of the digital asset and back into fiat. Once support was broken BTC prices plunged to their longer term floor at $8,000 before settling just above that a few hours ago. The question being asked by some industry observers now is: are the repo agreements and Bitcoin price action related. Ikigai fund manager Travis Kling thinks they are. “The repo market situation is a symptom of a larger situation that has been dubbed the “dollar shortage”. If you drop a big rock in the middle of a pond, how far do the ripples go? All the way out. Getting smaller as they go. If you throw a wrench in the quadrillion dollar eurodollar market, how far out does liquidity hiccup? BTC 30-day circulating supply is <$20bn. Small ripple.” Some smart investors that actually like and respect me say I'm crazy for thinking that Global Macro has a big effect on crypto. I think they're crazy for thinking these two things are entirely unrelated. pic.twitter.com/xYTSJVbCY7 — Travis Kling (@Travis_Kling) September 25, 2019 Since Bitcoin is priced in dollars it is entirely plausible that there could be a correlation with demand during a ‘dollar shortage’. If one is sold to get more of the other this could be what just happened to BTC as its market capitalization has just shrunk by $30 billion. Food for thought at least. Image from Shutterstock The post Did US FED Repo Transactions Cause Bitcoin Price Crash? appeared first on NewsBTC.

a year ago

Bitcoin And Bonds: Why Are These Two Assets Moving Together?

Bitcoin (BTC) is often described as “digital gold”, but it could soon be described as “digital bonds.” New data suggest an interesting relationship developing between Bitcoin and the yields on government-issued debt. As the graph below highlights, Bitcoin (blue line) appears to have developed a negative correlation to the yield on two-year U.S. Treasury Bonds (yellow line) in Q1 2019. This development coincided with Federal Reserve Chair Jay Powell reversing the Quantitative Tightening policy which he had tentatively pursued since Q3 2018. Source: ID Theory As Crypto Briefing previously reported, investors are increasingly concerned about the long-term effects of Quantitative Easing. A return to cheap money may have spurred a move into safe-haven assets, such as bonds or (possibly) Bitcoin, in anticipation of a recession or even a collapse in confidence in fiat currencies. A similar trend is found with bond yields from other high-GDP countries. Analysts from Digital Assets Data have determined that on a rolling 12-month period, a “decidedly negative relationship” has developed between Bitcoin and average 10-year yields from developed countries (including the U.S.) across Q2 2019. Source: Digital Assets Data. Bond yields and bond prices have an inverse relationship, with a low yield indicating high demand. Because bonds are safe-haven assets, yields usually fall during recessions, particularly in developed countries with a low risk of default. Since 2008, yields on bonds issued by Switzerland, Japan and the Eurozone have fallen to historically unprecedented levels. In some cases, yields have even been negative, meaning that investors are actually paying interest to lend money to the bond issuer. Short-term Japanese bonds have negative yields. Source: FT Bitcoin’s price recovery during Q2-Q3 coincided with a decided drop in bond yields from developed economies, against a backdrop of fears of a recession. It could be a sign that investors are purchasing both as stores of value, anticipating a global economic downturn. “We are seeing more alignment,” said Kevin Kaltenbacher, Data Scientist at Digital Assets Data. Fears of a global economic downturn have “tended to be bullish for Bitcoin,” he added. If the slowdown continues, the two assets might develop a still closer relationship. The relationship with bonds appears to have developed as the asset was repositioned from ‘digital cash’ to ‘digital gold.’ Although originally launched as a peer-to-peer payments solution, technical limitations have seen Bitcoin’s use-case evolve to take advantage of a low correlation with traditional markets. The broader investor community has “started to take notice of this asset class, seeing [Bitcoin] as a safe haven and store of value type of asset,” Kaltenbacher says,which could align it closely to bonds. Although it’s still too early to tell whether this will develop in the long term, he says, it could become a “fairly resilient narrative”. The post Bitcoin And Bonds: Why Are These Two Assets Moving Together? appeared first on Crypto Briefing.

a year ago

Tezos [XTZ] Jumps Over 4% Amids Binance Listing; CZ Hints Tezos Staking

Binance recently announced the listing of Tezos with pairs of Bitcoin(BTC), Tether(USDT) and Binance Coin(BNB). Will Binance Enable Tezos Staking? As Per a recent tweet by Binance, it has listed Tezos and it can be paired with USDT, BTC, and BNB. Following the announcement, users can start depositing Tezos on their accounts, while the launch of trading is scheduled for the 24th of September. Source- Twitter CZ then further created hype by asking the community that did they not what was coming next. A user suggested that does the move imply Tezos staking. While CZ didn’t give a definite answer, he expressed his excitement with a “happy” emoji. Source- Twitter The Tezos official website defines Tezos as, “ Tezos is a self-amending blockchain that can evolve by upgrading itself, with stakeholders being able to vote on amendments to the protocol, including amendments to the voting procedure itself.” Binance. US Opens Doors for Cardano, Ethereum Classic and Stellar Today, Binance.US opened deposits for Cardano (ADA), Basic Attention Token (BAT), Ethereum Classic (ETC), Stellar (XLM) and 0x (ZRX). Trading for these coins will begin on September 25, 2019, at 9:00 AM EST /6:00 AM PST. The announcement further mentions that the coins are temporarily only available for deposits and withdrawals will not be enabled until trading is live. Source- Twitter Also, Binance.US will commence trading on September 24, 2019 at 9:00am EST / 6:00am PST. The launch will see Binance.US list Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC), Binance Coin (BNB) and Tether (USDT). These coins will be available for trading across 13 fiat-to-crypto and crypto-to-crypto trading pairs. Source- Twitter Binance Announces 6th Phase of Lending Products In yet another update, Binance announced its 6th phase of lending products. The launch will take place on the 25th of September. In the sixth phase of Binance’s lending initiative, users will be able to lend Binance Coin(BNB), Bitcoin(BTC), EOS, Ethereum Classic(ETC), Ethereum(ETH), ChainLink(LINK), Tether(USDT) and Ripple(XRP) to earn interests payable from Sep. 25 to Oct. 09. Traders are in for huge benefit as Binance. US enables trading. Will Binance continue to keep the crypto community happy with its developments? Let us know, what you think? The post Tezos [XTZ] Jumps Over 4% Amids Binance Listing; CZ Hints Tezos Staking appeared first on Coingape.

a year ago

Binance Adds Another Top 10 Coin to its Lending Program

Binance is all set to launch its sixth phase of lending products on 25th September at 6:00 AM (UTC), where 14-day fixed-term lending products will be made available. The service is available to users on a first-come-first-serve basis. Binance Adds EOS, LINK to Sixth Phase of Lending Program Per an official announcement on Binance’s twitter handle, Binance is all set to launch its sixth phase of Binance Lending Products on September 25th. Source- Twitter In the sixth phase of Binance’s lending initiative, users will be able to lend Binance Coin(BNB), Bitcoin(BTC), EOS, Ethereum Classic(ETC), Ethereum(ETH), ChainLink(LINK), Tether(USDT) and Ripple(XRP) to earn interests payable from Sep. 25 to Oct. 09. Source- Binance Lending Product Details The annualized interest rate for initial lending products with a 14-day fixed maturity term has been set at 10 percent, 3 percent, 6 percent, 7 percent, and 6 percent, 6 percent, 10% and 6% for Binance Coin(BNB), Bitcoin(BTC), EOS, Ethereum Classic(ETC), Ethereum(ETH), ChainLink(LINK), Tether(USDT) and Ripple(XRP) respectively. A Look At Binance’s Different Phases of Lending The fifth phase of Binance lending products saw privacy coins Monero(XMR), ZCash(ZEC) and Dash(DASH) being listed. Binance launched its fourth phase of lending on the 18th of September. The third phase of the launch saw Ripple(XRP), Litecoin(LTC) and USDC being added to the lending platform providing 7% annual returns. Binance launched the second phase of its lending program on the 4th of September. In the second phase, 14- day and 28-day fixed-term lending products were made available. The first phase of Binance lending began on the 28th of August with returns as high as 15% on BNB coin. Binance believes that the various phases of lending will increase the availability of funds to margin traders. Will Binance’s ongoing initiatives bring more traders to the platforms? Will the crypto market soon present the scenario of “Spoilt for Choice” as leading exchanges compete to get the best user experience? Let us know what you think? The post Binance Adds Another Top 10 Coin to its Lending Program appeared first on Coingape.

a year ago

Bakkt Bitcoin [BTC] Daily Futures Attracts ‘Zero’ Customers at Opening

Bakkt’s physically settled Bitcoin [BTC] futures set off to a rather slow start on 23rd September. The total trading volume on the platform in the past two hours is only 7 Bitcoins. The first monthly contract was traded at $10,115. Moreover, these are the only contracts that have attracted any traders. The daily contract has been unsold until now. Bakkt Bitcoin [BTC] Monthly Futures Contracts Data (Source)Bakkt provides an on-ramp of crypto for institutional investors and traders alike. It has created a lot of hype over the years. However, the statistics post-launch reveals a depressing story. Much of it can be attributed to the CME futures contract which has significantly flourished in 2019. The daily exchange volume of the monthly traded contracts on CME is around 20,000 BTC (about $200 million). It reached a high of 40,000 BTC on 28th August last week. Nevertheless, the majority of the volume on CME is for current months’ contract. Whereas, only October contracts have been traded on Bakkt until now. Hence, Bakkt seems to lend no direction to the price this week. Furthermore, the fact that Bitcoin daily futures contract has attracted no customers at all is negative. This can be due to the current uncertainty in Bitcoin [BTC] price at $10,000. However, it might have been avoided altogether because of the massive volatility and suspected manipulation in the market. Two hours after the launch, Bitcoin [BTC] is still trading in a tight range. The price of Bitcoin [BTC] at 2: 30 Hours on 23rd September 2019 is $9973. It is trading at par with yesterday. BTC/USD 1-Day Chart on Bitstamp (TradingView) The much-anticipated launch was expected to have a massive impact on the price. However, the beginning has failed to create any euphoria. The price of BTC continues to hold its levels above $9950 looking for decisive action. How do you think that the slow start will affect the price this week? Please share your views with us. The post Bakkt Bitcoin [BTC] Daily Futures Attracts ‘Zero’ Customers at Opening appeared first on Coingape.

a year ago

The Fed Just Pumped $278 Billion Into the U.S. Economy: Here’s How

Last week, the Federal Reserve leveraged one of its tools for tinkering with U.S. financial markets — one that it hasn’t used since the Great Recession. The New York branch of America’s central bank financed some $278 billion worth of repurchasing agreements (repo) from September 17 to 19, 2019. For some market watchers, the move raised an alarm because, as Nobel laureate Paul Krugman put it, the financial turmoil that necessitated this intervention “was at the heart of the 2008 financial crisis.” Still, other economists have posited that the cash injections came in response to a hiccup and that markets are doing just fine. That “hiccup” was a spike in the overnight money market interest rate in response to a cash crunch. Typically, this rate stays on track with the Federal Reserve’s fed funds rate — an interest rate set by the Federal Reserve to guide the lending rates for bank-to-bank loans. At the beginning of the week, the money market rate decoupled from the funds rate — surging from the target 1.75 to 2 percent rate to 10 percent. By pumping more dollars into the cash-strapped lending market, the Federal Reserve brought the market money rate back in line with its funds rate. What started as a single act on September 17, 2019, has now snowballed into four straight days of repo agreements to inject more than a quarter of a trillion dollars’ worth of capital into the system. Naturally, Bitcoin Twitter has been in a frenzy about these so-called repo agreements. Here’s how they work, why they were “necessary” (in the Fed’s eyes) and what they might mean for the overall economy. What Is a Repo Agreement? Repo agreements are rudimentary bank-to-bank lending agreements that take place every day behind the scenes of the economy. These agreements are one-day, typically overnight, loans that are backed by Treasury bonds or mortgage-backed securities. These ad hoc loans are taken out only if the bank doesn’t have enough assets on its balance sheet at the end of the day to meet the reserve requirements mandated by the Federal Reserve. To correct this, the bank takes out a repo loan from another bank and puts up bonds and other securities as collateral. Once the borrowing bank has more cash in reserve the next day from payments and other operations, they pay back the repo loan with interest. It’s important to understand that banks are constantly shuffling loans from one to the other for longer periods of time or for periods as short as a day (as evidenced by repo agreements). This so-called money market is the backbone of the U.S.’s lending ecosystem and, by extension, the economy; if it gets bent or broken, the wider consumer borrowing market is sure to fracture as well. This is why the Federal Reserve stepped in: to lubricate the system with fresh cash to make sure it didn’t grind to a halt. At the beginning of the week, the lending rate for the repo market rose well above the funds rate set by the Federal Reserve, leaping from the Fed’s target of around 2 percent to a staggering 10 percent in a day. It should be noted: the Fed lowered interest rates this week from 2 to 2.25 percent to 1.75 to 2 percent. This rise pointed to a cash crunch, as banks were less willing to lend their peers money at the Fed’s target rate, so they began charging higher rates. In response, the New York Federal Reserve stepped in to buy these repo agreements within its target rate to inject the market with emergency capital and bring down the rising interest rate. Banks bid for the Federal Reserve’s money by pawning off securities (mainly Treasury bonds and mortgages) as collateral in return for cash loans. As a result, the Federal Reserve pumped $53.2 billion into the market on September 17 and $75 billion on September 18, 19 and 20 for a whopping $278 billion — more than one-third of the money spent on President Obama’s stimulus package in 2009. Why Did This Happen and What Does This Mean? These are the million-dollar crystal-ball questions, and analysts, economists and journalists of various camps have divined their own tea leaves to determine what this means for the broader well-being of the economy. The reason for the Fed’s repo action is clear: Banks weren’t lending to each other as easily because there wasn’t as much cash to go around. Why banks were cash-strapped, though, is another question entirely. And the answers have been fairly straightforward, even if they’re unsatisfying to some spectators. The one being thrown around in the wake of these cash infusions is that there was a perfect storm of coincidences: Primary among these are that banks withdrew cash to pay quarterly corporate taxes and that bank balance sheets have been inundated with $78 billion in new bonds that the government sold last week to finance its operations. Gregori Volokhine of Meeshaert Financial Services simply phrased it this way: “It looks like a lot of cash left the system in recent days and that demand for dollars was greater than the number of

a year ago

Litecoin Foundation Introduces an Intriguing Novelty on Celsius Network

Litecoin Foundation Introduces an Intriguing Novelty on Celsius Network The Litecoin Foundation is offering a new service. The company will lend its funds, using the blockchain-based Celsius Network. It’s now possible to borrow money from the Litecoin Foundation, albeit indirectly. Celsius Network CEO, Alex Mashinsky, didn’t specify what amount it will receive from the Foundation. However,

a year ago

Flat Bitcoin Eyes Fed Meet to Revive Its Bullish Bias

Bitcoin is under pressure to deliver as the Federal Reserve expects to deliver fresh rate cuts upon the conclusion of its two-day meeting this Wednesday. Bitcoin price flat as investors eyes the outcome of FOMC meet this Wednesday | Image credits: TradingView.com The benchmark cryptocurrency slipped by $14, or 0.14 percent, to $10,171.17 past London noon session. That marked its sixth consecutive day in negative territory, with a total plunge coming a little over the 3 percent mark. The price action reflected traders’ cautious take on bitcoin, specifically against the ongoing geopolitical and macroeconomic risks. The downside moves in the equity markets increased bids for traditional safe-haven assets, including Gold and Japanese Yen, but left nascent assets like bitcoin hanging on the sideways. Cryptocurrency traders also took it as a cue to flee from the bitcoin market. The move was visible in the 48-hour performance of the majority of alternative cryptocurrencies - or altcoins. Most notably, XRP and Stellar surged by as much as 20.63 percent and 25.22 percent against bitcoin, respectively, per the data provided by Binance cryptocurrency exchange. That showed even bitcoin enthusiasts were hedging into altcoins as the king cryptocurrency remained unresponsive to the macroeconomic events. Money Injection The tiring sideways trend in the bitcoin market, to some, could soon turn bullish, according to many notable crypto evangelists. Nejc Kodrič of BitStamp believes traders would increase their long bets on bitcoin shortly. The co-founder & CEO said in a tweet that the Federal Reserve is injecting billions of dollars into the financial system through repurchase agreements. That would make bitcoin more bullish in the eyes of investors, specifically against a weakening dollar. “FED just injected $53 billion into the banking system through transactions known as repurchase agreements (repo) and announced up to $75 billion more on Wednesday morning,” said Kodrič. “Long bitcoin!” Arthur Hayes, the CEO/co-founder of the controversial bitcoin derivatives exchange BitMEX, thinks Fed’s loosening policies would push bitcoin to its all-time high. He tweeted: QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000. https://t.co/gCBgaernYv — Arthur Hayes (@CryptoHayes) September 18, 2019 The Fed has not used the mechanism of repurchase agreement auctions since the last financial crisis in 2008. While not entirely an indicator of a loosening policy, analysts believe that rep0 rates indicate that conditions went terrible enough to seek Fed’s intervention. “[The repo] operation says that the Fed is watching the markets and is willing to intervene temporarily - if conditions warrant,” Alex Roever, the head of US rates strategy at JPMorgan Securities, told FT. What It Means for Bitcoin Repo rate and bitcoin do not correlate with each other. Nevertheless, a rate cut is an altogether different matter. Investors see the weakening of the US dollar as a signal to jump into haven assets. Bitcoin, which emerged as a hedging alternative against the ongoing US-China trade dispute, might be the place investors would want to park their capital. Gold & Bitcoin up a couple of % on new tariffs as market prices in 95% probability of another Fed rate cut in September. US 10yr & equities also sharply lower No summer break for markets! https://t.co/e029539zQA — skew (@skew_markets) August 2, 2019 Or, the altcoin hedgers might want to move back to the bitcoin market as its bullish prospects rise following a potential rate cut. Otherwise, Bakkt would need to lend some upside sentiment to the market with the launch of its physically-settled BTC futures contracts on September 23. The post Flat Bitcoin Eyes Fed Meet to Revive Its Bullish Bias appeared first on NewsBTC.

a year ago


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