Day: August 1, 2018

Decentralized ledger startup Hedera Hashgraph has raised $100 million to build out its platform and launch its network, the firm said Wednesday.

Coming off fresh first quarter losses undeterred, giant cryptocurrency merchant bank, Galaxy Digital, began trading on the Toronto Stock Exchange August, 1, 2018. It is one of the earliest banks in the crypto space to achieve such a listing. Many eyes are watching to see what will become of the relationship between legacy financial institutions and digital assets. 

Also read: Coinbase Flexes Muscle, Creates Political Action Committee

Galaxy Digital Trades, a Bitcoin Merchant Bank, Now Trades on TSX Venture Exchange

Famed billionaire investor Mike Novogratz explained, “If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public, but I don’t think it’s a mistake,” Galaxy Digital’s CEO told Bloomberg in Toronto.

Crypto markets have been unkind to any investor who might’ve jumped-in during late 2017. His interview otherwise ought to have been one of triumph as one of the earliest cryptocurrency-oriented merchant banks to be listed formally on a major stock exchange. He was in Toronto for just that purpose: Galaxy Digital is now trading on a world ranked, top ten, board, the Toronto Stock Exchange (TSX).

Instead, to a degree, it was bittersweet. The company was smarting off a brutal first quarter earnings call, posting over $130 million in losses. Rather than charging full steem on success, it appeared from a public relations standpoint to be limping as a financial canary in a very dark mineshaft.  

“There was a surge of companies,” Mr. Novogratz continued, “that listed in Canada and they all traded really poorly. I think the regulators got a little bit more nervous and said, ‘Hey, wait a minute, let’s make sure we know what we’re seeing here.’” Regulators were used to what as known as reverse takeovers to get a listing, a maneuver Galaxy was taking advantage of in order to get a seat, but when cryptocurrency is involved that apparently was enough to warrant extra looks under the hood.

Global Ambitions

“There’s a layer of due diligence,” TSX’s managing director Brady Fletcher elaborated, “that goes into figuring out and understanding the business itself, which probably takes a little bit longer than entrepreneurs like Mike would like it to, but for us that’s how we maintain market integrity.” TSX, by market cap, is the ninth largest stock exchange in the world. Based in Ontario, Canada, it offers a range of industries, domestic and foreign, but is mostly known for being oil and gas heavy. It also offers traditional securities, exchange traded funds, income trusts, etc.

Extra scrutiny effectively tied up Galaxy and its investors, as they could only watch for months, while regulators do what regulators do ahead of a listing, and markets fell. Mr. Novogratz knows from markets as a former hedge fund guy. He also knows crypto, having also famously made hundreds of millions trading ether and bitcoin.

That acumen led to becoming a full fledged merchant bank in the space by late last year. Galaxy is full service, trading digital assets, managing funds, giving financial advice, and investing in ecosystem businesses.

The CEO assured Bloomberg, “We’re going to be a global company; we want to be globally traded.” He wants listings eventually in Hong Kong, Frankfurt, London as well. For now, the New York company will trade under Galaxy Digital Holdings Ltd, ticker GLXY at the TSX Venture Exchange.

Is Galaxy’s listing on the TSX good for bitcoin adoption? Let us know in the comments section below. 

Images via Pixabay.

Be sure to check out the podcast, Blockchain 2025; latest episode here. 

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A major new report from the U.S. Treasury Department has called for a more agile and conducive regulatory approach to innovations in the fintech sector

FOMO Moments

Markets are dumping in crypto land; XRP hangs on but Bitcoin, VeChain, Icon and Polymath slide.

Markets have dumped overnight and the selloff has continued leaving crypto land in a sea of red this morning. Roughly $12 billion has been shed from cryptocurrencies on the day as total market capitalization plummets back to just over $270 billion.

Bitcoin has lost around $500 equating to 5.3% at the time of writing. It is currently trading at $7,585 after falling hard to around $7,500 a few hours ago. Trade volume for BTC has risen slightly though but short term signals are bearish. Ethereum is down 4% at the moment, trading at $425.

Predictably altcoins have been battered with several losing double digits. Looking at the top ten only Ripple’s XRP is making a gain, up 2.6% to $0.448. The announcement that Bill Clinton will be a keynote speaker at the firm’s upcoming Swell Conference has driven momentum for XRP.

We're thrilled to announce @BillClinton as keynote speaker for this year’s #SwellbyRipple. For more details: https://t.co/KYQgI4YrWv pic.twitter.com/XSo46T2s3d

— Ripple (@Ripple) July 31, 2018

The rest are all down 3-4% with Bitcoin and Ethereum taking the biggest hits. Further down the charts the losses are heavier with VeChain taking an 11% dive to $2.12, Monero and Tezos both dropping over 5% and Neo plunging below $30.

Following its pump yesterday Polymath has dumped losing all gains and retreating 23% to $0.362. The classic pump and dump pattern followed a Binance listing which failed to boost the coin any further. Also getting bashed up today is Bitcoin Private, Pundi X, Ark, Aelf and Icon with double digit declines. Very few altcoins are surviving the drop but Kucoin Shares and ODEM are among them.

Total crypto market capitalization has fallen just under 4% on the day to $272 billion. Over $15 billion was dumped from the markets in just 18 hours. There seems to have been a slight rebound but a weak one and the bears are in control once again. Trade volume for all cryptos has remained stable at $15 billion.

FOMO Moments is a section that takes a daily look at the top 25 altcoins during the current trading session and analyses the best performing ones, looking for trends and possible fundamentals.

The post Crypto Markets Dump $15 Billion in 18 Hours appeared first on NewsBTC.

McDonald’s announced their plans to release a ‘limited edition’ proprietary cryptocurrency called the ‘MacCoin’ as a way of celebrating the 50th anniversary of what has arguably become best known as the brand’s signature sandwich.

The company claims that the token is “backed” by the burger in question, and will serve as a collectible that can be redeemed by customers which purchase a Big Mac at one of 14,000 participating restaurants in the USA – in addition to “more than 50 countries while supplies last”.

Being a collectible however, means that this token should not be taken as an indicator of Big Ronald flirting with cryptocurrency, but rather a one-off utilisation of the phenomenon to further draw interest to a completely unrelated promotional campaign.

David and Mc-Goliath

This news is unfortunate, as the cryptocurrency market could have really benefited from the shot in the arm that backing from a major corporation such as McDonald’s at a time like this.

In less than 12 hours, Bitcoin has fallen from sitting at just over $8100 at 8:30 in the morning (BST) to a low of $7691.29 at 16:00pm (CryptoCompare) – with the price currently sitting in an unstable and volatile state.

As is frequently the case, the market followed with it.

In this light, it is appropriate that the launch of the MacCoin has heralded a flat note for many cryptocurrency enthusiasts and pundits. For example, Paul R. La Monica from CNN Money tweeted that

McDonald's has a limited edition MacCoin to commemorate the 50th anniversary of the Big Mac. It's an actual coin. Not a cryptocurrency. How quaint! $MCD pic.twitter.com/K5e7VyFyeZ

— Paul R. La Monica (@LaMonicaBuzz) July 30, 2018

Whereas a financially savvy respondent to the original McDonald’s tweet was inspired by the idea of the two parties coming together,

Def going to go for this. Got a voucher for a Big Mac and Fries for £1.99 when I filled in an online survey. Will use my Wirex card to pay for it and earn a bit of bitcoin at the same time! @wirexapp

— Chocolate Lover (@redhillmum) July 31, 2018

Elsewhere on the internet, it appears to have been mistakenly been reported as a currency – which would incorrectly suggest that it is fungible in a traditional sense. Rather, the tokens are to be shared, collected or redeemed by customers by (presumably) using a closed and centralized platform dedicated to the token.

The Value of Traditional Investment

The blockchain community is divided on the subject of institutional investment, along with the introduction of old-money into cryptocurrency.

When the first examples of cryptocurrency futures were introduced at the end of last year for example, and many publications hailed the event as the potential turning of a page that could deliver a bright future to the market economy – while others remained skeptical.

Concurrent with the expiration of the first of the Bitcoin futures, the market dropped significantly and has yet to recover from the beginning of this year’s devastating fall. Let’s hope that the same cannot be said for branded corporate involvement, or other ways that traditional finance and real-world assets are combining with cryptocurrency – such as real estate.

Image from Shutterstock

The post McDonald’s ‘Limits’ Crypto in Self-Celebration, as Bitcoin Plummets appeared first on NewsBTC.

Leading independent Wall Street research organization Fundstrat has announced that it is about to start accepting Bitcoin from global clients.

The trend in Wall Street currently seems split between joiners and leavers, those such as banking giant Goldman Sachs who, having listened to its client base, has demonstrated that it has seen the writing on the wall regarding cryptocurrency, and those leaving comfortable positions in banking to jump on the blockchain bandwagon wholeheartedly.

Those such as JP Morgan blockchain executives Amber Baldet who left to found her own decentralized app store and ex-vice president of Goldman Sachs who jumped ship to fire up a crypto asset management firm, both examples of the current lure of crypto and blockchain on Wall Street.

Fundstrat Global Advisers have decided to become joiners in its announcement that the firm will start accepting Bitcoin payments through Bitpay, the largest global blockchain payments provider. Reportedly, the organization is one of the few macro research firms to follow movements in the crypto environments and has decided to take the plunge. Managing Partner Thomas Lee commented on the move:

“Fundstrat found that accepting payments via BitPay is considerably simpler, faster and less expensive than bank wires… Bitcoin payments make it easier for our clients, particularly those outside the US, by offering more options to pay for our research services without having to deal with the hassles of currency translation.”

Its clients include institutional investors, wealth advisers, pension funds, and wealthy individuals requesting investment reports and profiles including cryptocurrency.

And it is not just Bitcoin that Wall Street is currently taking an increased interest in. Last month’s comments by SEC Director of Corporate Finance William Hinman that Ether wasn’t operating as a security has left its impact on New York’s financial hub, with CBoE’s president Chris Concannon declaring:

“We are pleased with the SEC’s decision to provide clarity with respect to current Ether transactions… This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”

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Decentralized trading platform Radar Relay closed a $10 million Series A funding round led by Blockchain Capital, the startup announced Wednesday.

Wikipedia founder Jimmy Wales has said the not-for-profit online encyclopedia platform will “never” hold an ICO or issue its own cryptocurrency.

The cryptocurrency ecosystem is still in its early stages and as such, adoption is quite slow. In fact, studies show that in the U.S, only 8% of people hold cryptocurrency investments. Compared to the number of blockchain startups and projects that continue to emerge, competition is tough.

While this is frustrating for investors who find it difficult to discern the good projects from the bad, it is even more so for blockchain startups trying to prove themselves. These companies are faced with several obstacles– from the talk of strict ICO regulations in the future to the ban on ICOs in countries like China. The looming possibility of getting hacked, coupled with FUD from investors doesn’t help either. Although uncertainty is a normal thing in business, too much of it makes things difficult.

Fortunately, as with any new technological field, adoption, although slow, will improve over time. When that happens, blockchain startups must be ready for the coming load on their networks and the swarm of new consumers who will be looking for services to patronize. This means that the major work should be focused on operation, security, and scalability.

As most blockchain startup teams are relatively small, pending the growth of the organization, there is no room or financial allowance for extra members. This may leave the current team overworked and juggling the development of their platforms as well as the issue of funding.

There may also be gaps in areas such as customer service and marketing that are equally as important as the tech itself. So what can blockchain startups do to ensure that every part of the business is taken care of without cluttering their systems? The answer is simple: Outsourcing to firms that are well-equipped to provide out-of-the-box token funding solutions.

What are Out-of-the-Box Solutions?

According to Mike Raitsyn of Snowfox Technologies – an airdrop and campaign management platform that connects crypto and blockchain startups to investors, Out-of-the-box solutions are the “products that significantly reduce the process of preparing for ICO/STO, thanks to ready-made solutions necessary for the entire process of selling tokens”. These include KYC / AML / PEP user verification, payment processing, investor verification, data processing and cryptocurrency processing.

In the past, the ICO and standard token offering (STO) process were handled with a DIY approach and this has been less than ideal. “The issuers (tokens) are just passing through the “9 circles of hell”, repeating almost the same processes in order to comply with international compliance, to develop a mechanism for working with personal users data, inspecting various types of investors in different regions, processing payments, distribution of tokens, etc.” Raitsyn said.

Firms like Snowfox and MPCX  both offer out-of-the-box blockchain solutions which give startups a window of up to 2-3 months to independently focus on creating a platform for working with their investors. This comes without the need to bother about the token sale process.

“Our solution already includes KYC / AML, cryptocurrency processing, marketing tools, loyalty programs, a system of promotional codes and work with influencers – all that is needed to make private and public sale in the most convenient way for the token holders and the ICO itself,” Raitsyn said.

 What to Look Out For in Blockchain Solutions Providers

Choosing which company handles your ICO is a step that can make or break the entire process. A company that doesn’t align itself with your vision will definitely generate poorer results than you hoped for. However, there are certain things to look out for when choosing a company to outsource your ICO needs to.

1. Ability to Provide Top-Notch Security

Typically, any company that handles your ICO should value security as much as you do to avoid any form of theft. This includes verification, investor authentication and other relevant forms of security. While this may seem obvious, there are startups that take security for granted.

One example is the case of the Coindash ICO which was hacked in 2017 and robbed of $7 million. Prior to the hack, there had been security concerns with the company’s code which were ignored. It’s painful to lose money after your team has put in so much work. To avoid this scenario, you should use firms that have carried out secure and successful ICOs in the past.

2. A Wide Scope of Functionality

Apart from your company’s ICO, there are other important things that must be done to ensure the smooth operation of your platform even after the crowdsale. These are things like smart contract technicalities, design and analytics.

Although there are companies that are well versed in one or more of these things, outsourcing to different firms at the same time may complicate things down the line. This is why it’s a better option to choose a blockchain solutions firm that has a broad range of functionality on a single platform.

3. An Interest in Innovation

The cryptocurrency ecosystem is changing gradually, especially as it trends towards ICO regulation. Although there are several positive aspects of this change, like improved security and transparency, protection of property rights and increased investment by big Wall Street players, there are also several negative aspects.

Firstly, there are too many offers in the market and this may only increase with time. Secondly, public sales are beginning to dwindle while the average budget for planning an ICO has continued to increase, even surpassing $1 million in some cases. Depending on future regulations, these negatives may become worse.

Having forward-thinking blockchain solutions firm on your side helps you to see future problems from a different perspective and share the burden of tackling them. An innovative blockchain solutions firm will typically have a bird’s-eye view of how the industry is changing. This quality is highly important and will certainly prove valuable for a blockchain startup in the long run, especially as the industry is still in its early stages.

For example, companies like Snowfox Technologies offers a range of essential features and services on their platforms which plays a crucial role in the success of ICO campaigns, and in turn the project itself. The general offerings include;

• Coverage of entire ICO process, starting from planning to execution and promotion.
• Provision of a scalable bookbuilding platform that can accommodate and facilitate any type of token crowdsale.
• Accurate estimation of ROI, statistics and other relevant analytics.
• Extra security including KYC/AML and support against DDoS attacks.
• The opportunity to create a landing page and token airdrop page on its bookbuilding platform with customizable front-end design in English, Russian and Japanese languages.
• Creation of ERC-20 tokens with special discounts and Bonuses.
• Development and management of smart contracts and blockchain-based web applications.
• Provision of secure cryptocurrency payment gateways for token sales with automatic withdrawals to cold storage and very low fees. This also includes simple Visa and Mastercard integrations, to make it easier for investors to buy tokens.
• Continuous support throughout the entire process.

There have been few successes along the road as well. By availing such service from Snowfox, one of the projects — Crypterium raised about $50 million through token sales.

Raitsyn gives a hint about the opportunities lying ahead by saying, “people are ready to go towards the blockchain industry, to study, receive knowledge and constantly learning new skills, opening new horizons for their projects and developing the technologies worldwide.”

Looking Forward

The ICO terrain is tougher and more competitive than it was in 2017 because the space has become saturated with many startups and persistent meddling by regulators is serving as a hindrance to investors. To outdo the competition, blockchain startups must have a great value proposition, strategy, and overall functionality. This is already enough work without adding the intricacies of planning a crowdsale to the mix. That is why outsourcing this aspect is important and may define how the company is perceived by potential investors.

While outsourcing is meant to make things easier for blockchain startups, its process is not easy. There are so many things to figure out like which projects should be outsourced and who exactly to work with. Snowfox takes away that problem by automating the process and laying down several options that make it easier to decide.

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Tuesday saw Bitcoin take a bit of a tumble, with the price of the asset currently down 7% in the past 24 hours. Despite the drastic pullback, some investors do not see this as a bearish sign, including Mike Novogratz of Galaxy Digital.

Bitcoin Sees Pullback From Monthly Highs, Volume Still Strong

At midday (GMT) on Tuesday, Bitcoin began to lead the market downwards, with the price of the crypto asset seeing a gradual decline overnight. Altcoins have since followed, with cryptos like Ethereum and Bitcoin Cash posting similar losses, in terms of percentage points.

As of the time of press, the market has since found some support, with Bitcoin currently sitting at ~$7630, down 6% on the day, and altcoins staying relatively stagnant. What caught many by surprise is that exchange volume was still present throughout that drop, with the collective daily volume of the cryptocurrency industry currently amounting to a hefty $15.7 billion.

This figure may look measly in comparison to legacy markets, but in the current state of the industry, this level of volume isn’t something to scoff at. In fact, $15.7 billion is approximately 75% higher than the average daily volume seen at Bitcoin’s yearly low. Statistics like these go to show how interest in this nascent industry may be starting to ramp-up yet again.

It is currently unclear whether there was a single catalyst for this specific pullback, however, as NewsBTC has just covered, some are attributing the decline to South Korean regulators looking to regulate exchanges in a stricter manner. Nonetheless, the multi-faceted nature of the industry has led many to conclude that this 7% decline is the result of a combination of fundamental and technical factors.

Industry Leaders Don’t Believe That Bear Season Is Back

In the midst of this short-term decline, Mike Novogratz, the CEO of the crypto-centric Galaxy Digital fund, took to Twitter to reassure his followers to “stay long.”

I don’t see $btc dominance pulling back any time soon. Lots of cool institutional projects coming and most will start with bitcoin. Stay long.

— Michael Novogratz (@novogratz) July 31, 2018

The former hedge fund manager noted that he doesn’t see Bitcoin market dominance “pulling back any time soon,” later adding that institutional investors will have a focus on Bitcoin when making a foray into the industry. Institutional affection towards the foremost crypto asset will likely push dominance figures higher in the future, or at least in the short to mid-term.

Novogratz, a former institutional investor himself, has likely seen movement within the inner workings of this space, indicating that traditional firms hold an inclination to invest in Bitcoin, rather than altcoins.

Peter Smith, who keeps an ear close to the ground of this industry, echoed Novogratz’s sentiment in a recent interview. Speaking with Bloomberg, the CEO of Blockchain noted:

“Institutions, when they are coming into the crypto market, usually buy Bitcoin first. And so I expect Bitcoin to outperform relative to other major cryptos in the next 6 months.”

While the statement from Galaxy Digital’s CEO mostly speaks of Bitcoin dominance, the investor’s closing remarks of “stay long,” show that he expects for the asset to increase in dominance, while also seeing a rise in price.

Featured Image from Shutterstock

The post Bitcoin Drops 7% Overnight, Billionaire Investor Remains Bullish in The Mid-Term appeared first on NewsBTC.

A company is creating a blockchain ecosystem where gold can be traded for virtual money, and it has established a partnership with a major Korean exchange #SPONSORED