Day: July 30, 2018

Traditional venture capital (VC) funding is often plagued with long and complicated processes, making it difficult for company founders to connect with investors.

For one company, that is creating the world’s first decentralised stock exchange in conjunction with Binance and the Malta Stock Exchange, it doesn’t have to be that way.

“Opening Creativity for Good”

Berlin-based Neufund is an Ethereum-based protocol for securities’ tokenisation and issuance. It allows any type of financial asset to be tokenised and liquidised. It’s also aiming to bring disruption to the traditional VC markets.

Speaking to NewsBTC, Zoe Adamovicz, CEO and co-founder of Neufund, knows firsthand how hard it is to find and close investments. As an experienced entrepreneur and angel investor, Adamovicz decided to found Neufund with fellow founder and CTO, Marcin Rudolf, to allow startups, small and medium-sized businesses, and established companies to legally issue a new concept of asset ownership: tokenised equity.

Under German jurisdiction, the platform provides organisations with a legal and technical framework to conduct fully legal and safe equity token offerings (ETOs). Disrupting traditional VC funding, Neufund is doing things faster, easier, and bringing the necessary liquidity needed.

“We are a team of regulatory and blockchain experts, on a mission to change the way projects are funded,” Adamovicz said. “Our ultimate goal is to open creativity for good. We want to empower people all around the world, making it possible for them to pursue their projects and dreams.”

Neufund has announced the first six companies that will be conducting their ETOs with them: Brille24, an eyewear pioneer, Uniti, a Swedish electric car startup, Next Big Thing, a startup incubator for the Internet of Things (IoT) and blockchain ventures, mySwooop, an omni-channel re-commerce platform that buys and sells new and used electronics, Blockstate, a company creating products for the future of finance, and Emflux Motors, an electric superbike company.

It is these ETOs that are looked at as offering a new era of legal and secure ICOs. According to Neufund, equity tokens, serving as equity instruments, empower those with limited investing capital to use fractional ownership as a means of investing.

According to Adamovicz, a form of universal token that is able to represent real-world business will replace utility tokens as investment instruments. She believes it is only then that “the investor’s and issuer’s incentives can be aligned and economic models can be mathematically consistent.”

She adds that ordinary shares will be replaced with some form of programmable shares or technologically enhanced shares. Consequently, she believes that “security tokens will replace both the shares used in today’s financial world, and the utility tokens used in ICOs.”

Creating the First Decentralised Stock Exchange

Earlier this month, the equity fundraising platform announced that it was collaborating with MSX, an innovation vehicle of the Malta Stock Exchange, and Binance, one of the world’s largest cryptocurrency exchanges.

The aim is to create a regulated and decentralised global stock exchange for listing and trading tokenised securities alongside of crypto assets. With market equity tokens projected to reach $1 trillion by 2020, the partnerships will make it possible for companies to trade their equity in a legally-binding way on the biggest crypto exchange in the world, said Adamovicz. She adds that liquidity is one of the major values of equity tokens versus traditional investment assets.

“We aim to bring access to [an] international community of investors gathered around Binance, and thanks to MSE all trades will be secured with proper licenses,” she said.

Featured image from Zoe Adamovicz.

The post This Berlin Startup is Disrupting Traditional VC Funding Through Tokenised Equity appeared first on NewsBTC.

A study by crypto analytics firm Autonomous Next has found that the number of crypto hedge funds has been rapidly growing since 2016, showing that crypto investment is a booming industry. All together, crypto hedge funds manage USD 7.5 – 10 billion of assets. This represents the start of what could be a massive wave of institutional investment into the crypto space.

Prior to 2014, only 12 crypto hedge funds were formed; to put this in perspective, Bitcoin launched in 2009. By the end of 2014, there were 27 crypto hedge funds. This growth in hedge funds occurred during and after the rally that pushed Bitcoin’s price above USD 1,000 for the first time. In 2015, there were 35 crypto hedge funds, the small amount of growth was probably due to the strong bear market at the time. In 2016, the number of crypto hedge funds jumped 60% to 56.

2017 saw the biggest crypto rally in history, with Bitcoin rising all the way to USD 20,000 and Ethereum rallying to become the second most valuable cryptocurrency. Simultaneously, numerous other cryptocurrencies launched and became very popular. By the end of 2017, there were 251 crypto hedge funds, a 348% increase since 2016.

There is definitely some correlation between a rising crypto market and the rate of formation of new crypto hedge funds, but even during bear markets, additional crypto hedge funds have been forming. During the first half of 2018, which was a strong bear market, the number of crypto hedge funds rose 24% to 312.

Crypto hedge funds are using different strategies, including making money from trading, buying and holding various cryptocurrencies, tracking an index comprised of various cryptocurrencies, hedge funds that track the average of crypto hedge funds, and investing in crypto infrastructure like wallets and exchanges. A tiny fraction of crypto hedge funds is focusing on artificial intelligence and quantum technology.

Apparently, the top hedge funds hold most of the capital, with the top ten crypto hedge funds holding 43% of the total money in crypto hedge funds and the top 50 crypto hedge funds holding 80%.

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The CEO of the Fatfish Internet Group believes that Bitcoin will continue to increase in price in the short-term. Kin-Wai Lau spoke about the market experiencing a “second wave rally,” as well as the Bitcoin ETF proposed to the SEC.

Kin-Wai Lau: Second Wave Rally is “Very Strong”

Kin-Wai Lau appeared yesterday on CNBC’s “The Coin Rush” segment. There, he mentioned that he believed people will see the current price action in Bitcoin and other cryptocurrencies as a “second wave rally”. He went on to state that he felt it was a “very strong wave.”

When explaining why he felt optimistic about the price of Bitcoin in the near future, the CEO stated that there was a lot of interest at the moment. He then cited the fact that trading volume is around seven times higher than it was at Bitcoin’s lowest point this year. This serves as an indicator of renewed interest.

Another factor mentioned by Lau is adoption. According to him, adoption and interest increasing again will likely mean higher prices that will reward those with positions in the market already:

“It’s just generally I think very positive for early adopters and people who have interest in the sector.”

The interviewer then brought up the recent decision by the U.S. Securities and Exchange Commission (SEC) to reject the Bitcoin ETF proposed by the Winklevoss twins again. When asked about what was needed for the financial regulators to finally approve such a product, Lau stated:

“I think it’s pretty much a matter of time where you see SEC approving an ETF.”

He then went on to list the various factors that a successful applicant would need to prove to the financial watchdog. These included the ability to surveil and monitor themselves, as well as create liquidity. The Fatfish Internet Group CEO also stated that there needed to be readiness in the market. This he claimed was “not far away” and that he believed the market would accept an ETF in “just a couple of months.”

Finally, in response to a question about what is needed to “stabilise the market,” he brought up the subject of price predictions and what is driving current demand. The CEO stated that cryptocurrency is being “used widely now in many counties”.

Furthermore, many jurisdictions are beginning to regulate the market rather than trying to stamp it out. For Kin-Wai Lau, the the planet’s regulators are taking a “cautious, but optimistic approach.” All of this bodes well for the price of Bitcoin and other cryptos generally.

Featured image from Shutterstock.

The post Tech Venture Investor: SEC Approval for a Bitcoin ETF is Not Far Away appeared first on NewsBTC.

The Chamber of Digital Commerce Token Alliance’s new report on how to understand the digital token market notes that guidelines are needed to promote “responsible growth” and innovation

Experts have still not reached consensus on whether the approval of a Bitcoin ETF by the SEC is all that important. Meanwhile, the markets continue reacting to the recent rejection of an ETF by Winklevoss twins – let’s check the charts

This article originally appeared on Bitcoin Magazine.

Many small countries with flexible regulatory guidelines towards cryptocurrencies and friendly banking rules are pulling some companies away from some of the more established “havens” such as Switzerland.

Many in the industry have recently expressed concerns that Switzerland may be losing its “crypto-haven” tag,  primarily because of current banking regulations in the alpine country. Thomas Moser, a board member of the Swiss National Bank, told Reuters recently that some fintech companies still had trouble opening accounts:

“They raised concerns about problems with opening bank accounts, which was a worry for them, and asked for help… I said this was not something the SNB dealt with, but they should speak with FINMA.”

This sounds like a less than genuine approach by the central bank as FINMA, the Swiss cryptocurrency-friendly regulatory body, continually has to deal with SWB’s continued concerns about money laundering.

Recent countries in the hunt for business are Liechtenstein and Gibraltar; elsewhere, the Cayman Islands and Bermuda are fast becoming start-up favorites, the latter recently when Bermuda shorts-wearing Changpeng Chao, CEO of Binance, announced he would open up compliance operations there and invest USD 15 million in the island.

Just in the last week, Bermuda’s Prime Minister David Burt, who also doubles as Minister of Finance, announced that 20 fintech companies had incorporated in Bermuda and another 21 were waiting in reserve. The list of 20 included Binance, Unikrn, iCash, Hub Culture, DES Digital Currency Exchange and Omega One with both Arbitrade Ltd and Arbitrade Mining (Bermuda) Ltd listed.

Bermuda has not only captured the world’s largest crypto company in Binance but, through its prime minister, has also expressed the desire “to position Bermuda as the incubator for this industry”, as Burt recently said at a New York blockchain conference.

The Rock of Gibraltar seems an unlikely place for a financial hub but nonetheless, it is, like Bermuda, fast becoming one, as it continues to lure new and existing fintech companies to its shores. Its second ‘Gibfin’ blockchain forum is on its way in September 2018, demonstrating the country’s serious intent when it comes to encouraging fintech companies to do business there.

Gibraltar is also about to finalize its cryptocurrency legislation which would allow companies to trade in digital currencies. Currently, 35 companies have applied for a government license.

Tiny Liechtenstein isn’t to be left behind either. The country’s proposed new Blockchain Law would take Liechtenstein down the “haven” route offering “crypto companies regulatory and legal predictability as well as enabling the country access to traditional fiat-based banking services”.

The law, originally scheduled for legislation on 10 July, is still on hold as the industry awaits further announcements later in the year.

Despite the obvious competition from these geographical minnows, Switzerland forges ahead regardless to become Europe’s cryptocurrency capital. Recent moves towards allowing cryptocurrency trading on its new SIX Digital Exchange is a clear notice of intent.

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The post Geographical Minnows in the Hunt for New Crypto Business appeared first on BitcoinNews.com.

Cryptocurrency merchant bank Galaxy Digital will begin trading on the Toronto TSX Venture Exchange this week.

Gibraltar just scored a major unexpected goal in the great tournament to be known as the most Bitcoin-friendly jurisdiction in Europe. A local football team made international sports headlines for deciding to pay its players with cryptocurrency.

Also Read: Banks Don’t Really Want to Use ‘Blockchain’ for FX Settlement After All

Gibraltar United to Pay Its Players in Cryptocurrency

Gibraltar United F.C., a team founded in 1943 and currently playing in the Gibraltar Football League’s Premier Division, has decided to introduce cryptocurrency salary payments for its players. The club reportedly secured a sponsorship partnership with the help of the owner, Pablo Dana, an investor in the Quantocoin ICO. Dana told the UK’s Guardian newspaper that all player contracts will include payment agreements in cryptocurrency by next season.

The owner explained that a “preoccupation with transparency” prompted the introduction of cryptocurrency to Gibraltar United, predicting that the technology’s open-access nature could curtail the “corruption scandals that have plagued football.” It has also reportedly given his club an easy way to help foreign players who have difficulty setting up bank accounts in the British Overseas Territory. As for the legal environment in Gibraltar, Dana commented that: “It was the first [place that] regulated betting companies 20 years back, when everyone was seeing them as horrible. They put compliance and anti-money laundering regulations and created a platform – they have the intelligence to do the same with cryptocurrencies.”

Cryptocurrency involvement in the sports field is nothing new, but it usually focuses on betting, gaming and project promotion deals. And as the newspaper notes, in January the Turkish amateur league club Harunustaspor signed 22-year old Omer Faruk Kiroglu for 2,000 liras worth of BTC and 2,500 liras in fiat cash.

Crypto Hub

Besides this latest development, Gibraltar has a few other claims to be a cryptocurrency hub. As we reported at the time, regulatory mechanisms tailored to protect customers of cryptocurrency businesses, and its own reputation, went into effect on January 1, 2018. And just a few days ago, the cryptocurrency exchange platform subsidiary of the Gibraltar Stock Exchange officially opened to the public with six cryptocurrencies: BTC, ETH, RKT, LTC, BCH and ETC.

Should everyone interested in Bitcoin try to negotiate receiving part of their salary in cryptocurrency? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

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