Day: September 15, 2018

The World Economic Forum has outlined more than 65 blockchain use cases for environmental protection in a recent report

The European Central Bank (ECB) is not issuing a digital currency any time soon, according to President Mario Draghi.

He’s argued that the blockchain technology is not mature enough for such a level of responsibility and physical cash remains widely used within the monetary union.

ECB Studies Potential Issuance of Central Bank Digital Currency

In a letter sent to Mr. Jonás Fernández, Member of the European Parliament, ECB President Mario Draghi said the central bank is analyzing the consequences of issuing a Central Bank Digital Currency and explained why there are no plans to launch one.

“First, the technologies which could potentially be used to issue a central bank digital currency, such as distributed ledger, have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context.”

In 2016, the use of physical cash within the Euro monetary system accounted for 79 percent of all payments at point of sale and for 54 percent of the total value of those transactions. Non-cash payments have grown 7.9 percent in 2017, according to ECB research.

A number of countries have announced their plans to launch national cryptocurrencies or already conducted initial coin offerings (ICOs) to introduce a state-backed digital token.

In late February, Venezuela launched Petro, an oil-backed currency, which was automatically banned by the United States. Iran followed suit and announced it will “implement the country’s first cloud-based digital currency” to counter the international sanctions it faces ever since U.S. President Trump exited the nuclear deal.

China is also moving towards the launch of a national cryptocurrency, although the country is known to have a very strict policy regarding cryptocurrency trading. In June, Russian Central Bank’s Deputy Chair Olga Skorobogatova said: “regulators of all countries agree that it’s time to develop national cryptocurrencies, this is the future.”

Coincidentally or not, most countries who have announced national cryptocurrencies are run by authoritarian governments not keen on transparency. In June, Bitcoin developer Peter Todd explained that all currencies are digital nowadays and “cryptocurrency is not about being able to move money digitally, it’s about auditing.”

“In the case of decentralised cryptocurrency, it’s about the ability to move money and audit it without permission. But when you’re talking about a government currency, obviously there’s permission, a central authority and control — end of story.”

The issuance of Central Bank Digital Currencies is not exclusive to countries in tense relationships with the United States. Sweden is considering the issuance of an electronic version of its currency, called e-krona, while the Bank of England has published a paper on the matter.

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Bitcoin Press Release: Blockchain App Factory, an enterprise, technology services, and solutions provider for Blockchain startups announce new STO services.

September 11th, 2018, India – Blockchain App Factory, an end-to-end permissioned and crypto blockchain solutions company, is expanding its offering by launching Security Token and White-label Exchange Development services. Blockchain App Factory are an innovation-driven company with 25+clients in the Blockchain and Crypto space ranging from Li & Fung, a 118-year-old global supply chain management with almost 9 million deliveries per day (On the busiest day), executed through an automated supply chain solution; to a cryptocurrency exchange startup whose country just now became crypto-friendly.

Blockchain and STO’s

The concept of blockchain is often associated with Token Generation Events. However, the lack of financial disclosure by companies raising funds through Token Sales has resulted in SEC’s determination to protect investors from frauds, pump and dump schemes, and exit scams.

There is a need for institutional investors to enter the domain of Security Token Offerings to stabilize the cryptocurrency sphere. However, these investors are skeptical about the crypto-market.

James Harper, Director of Sales & Business Development stated,

“The present state of ICO is riddled with roadblocks because many companies lack the clarity of ICO’s purpose and the Blockchain space. And so there is a hesitancy among the institutional investors to invest in ICO, solely because of the non-regulatory compliance, lack of financial transparency and the volatile nature of the market.”

Security Tokens help in the digitization of illiquid assets, such as real estate, equities, and security bonds; this will prove beneficial for investors. It is touted to have better legal clarity, compared to its counterparts. It also provides a safety net protection for the company and investors by enforcing stringent regulations and limitations.

However, the real challenge in the Security Token space lies in the availability of a platform to create them with ease. In addition, there is a lack of trusted exchanges for the trading of security tokens. It works under regulatory framework – KYC, AML, and Profit Loss statements which are on smart contracts for the security token creation process to be initiated.

ICOs & IPOs to STOs with Blockchain App Factory

A company, backed by one of the largest equity investment firms, almost went IPO in Singapore, pivoted at the last minute, and is now in the process of fundraising with blockchain tokenization through Blockchain App Factory. This company has evolved a couple of notches up by adapting to the STO industry with a secure and reliable platform; developing holistic Security Tokens and an Exchange Platform on the white-label blockchain, which eliminates the limitations of gas prices.

James Harper, Director of Sales & Business Development went on to comment,

“Many traditional companies will delist from traditional stock exchanges to move into blockchain due to high barriers to entry and the exorbitant cost for regulatory compliance. Traditional methods of raising capital like Venture Capital, Bonds, Stocks will be tokenized. We expect real estate especially the commercial real estate will be the first movers into the STO market.”

Token Sales have raised billions of dollars in capital funding in the last couple of years and with the advent of STOs, a new trillion-dollar capital funding awaits. Keep an eye on the Blockchain App Factory and the project of securitizing digital assets.

To learn more or visit the Website: https://www.blockchainappfactory.com/
Meet the Team: https://www.linkedin.com/company/blockchainappfactory/
Connect on Facebook: https://www.facebook.com/BlockchainAppFactory/
Follow on Twitter: https://twitter.com/Blockchain_BAF

Media Contact
Contact Name: James Harper
Contact Email: [email protected]

Blockchain App Factory is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high-risk tolerance. Only participate in a token event with what you can afford to lose. This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

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She detailed that On Digital Financial Assets, particularly parts one, two and four of the Civil Code of the Russian Federation, as well as On Alternative Methods of Attracting Investments (crowdfunding), as contained in the initial draft proposal, is both crude and at odds with one another.

The lobby group hope their bill will be considered as a solution to these issues: “The project, proposed by the working group of the RUIE, is a legally balanced golden mean between the bills” On the CFA and On Amending the Civil Code of the Russian Federation “…and neutralizes the contradictions in them. It is designed by taking into account the western trends and the current Russian legislation.”

On the matter of cryptocurrencies, she says they hope to give them a special status never seen before in Russian law and that the central bank should issue operational licenses for exchanges. Ownership of cryptocurrencies should be very similar to the ownership of securities, she added.

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With decentralized technologies increasingly making inroads into a wide range of industries, it should come as no surprise that blockchain companies are seeking to diversify and expand their global reach by developing new products and services. One such company is enterprise, technology services and solutions provider Blockchain App Factory, which announced its move into security token offerings (STOs) in India this week.

What is Blockchain App Factory?

The brains behind Blockchain App Factory describe it as an ‘end-to-end permissioned and crypto blockchain solutions company’, and more succinctly as an ‘innovation-driven company’.  Blockchain App Factory is expanding its portfolio of services by launching its Security Token and White-Label Exchange Development. The company boasts a roster of over 25 clients from the blockchain/crypto spheres. These include major players such as Li & Fung, whose automated supply chain handles up to nine million deliveries per day, and smaller operations like a cryptocurrency startup aiming to benefit from its country’s progressive attitude to blockchain technology.

Blockchain and STOs

The blockchain concept is inevitably linked to token generation events, but the lack of transparency regarding companies generating funds via this method has meant that financial regulators such as the American Securities and Exchange Commission (SEC) have been desperately trying to protect investors from scams and other fraudulent behaviour. Despite a need for institutional investors to become involved with STOs to aid stability, these investors are still wary of the cryptocurrency market. James Harper, Director of Sales & Business Development at Blockchain App Factory had this to say about ICOs:

“The present state of ICO is riddled with roadblocks because many companies lack the clarity of ICO’s purpose and the Blockchain space. And so there is a hesitancy among the institutional investors to invest in ICO, solely because of the non-regulatory compliance, lack of financial transparency and the volatile nature of the market.”

Benefits and Challenges of STOs

Security tokens offer more stability and legitimacy than ICOs and are beneficial for investors, as they help to digitize illiquid assets such as real estate, equities and security bonds. In addition, strict regulations and limits provide protection and therefore peace of mind for both companies and investors. Currently, however, it is simply inconvenient and challenging to create STOs. Few cryptocurrency exchanges actually offer the facility for trading in them, a situation which is obviously less than ideal. That said, the Blockchain App Factory team believe a shift will take place. James Harper further commented:

“Many traditional companies will delist from traditional stock exchanges to move into blockchain due to high barriers to entry and the exorbitant cost for regulatory compliance. Traditional methods of raising capital like Venture Capital, Bonds, Stocks will be tokenized. We expect real estate especially the commercial real estate will be the first movers into the STO market.”

The Future of Blockchain-based Funding?

In recent years, token sales have raised capital funding to the tune of billions of dollars.  With the introduction and proliferation of STOs–which are more advanced and secure than ICOs and could eventually surpass them–there are potentially trillions of dollars to play for. If Blockchain App Factory plays its cards right and provides innovative and effective services in this field which prove to be popular, there will be obvious benefits for developers and investors alike.

To learn more about Blockchain App Factory visit the website, connect on Facebook or follow Blockchain App Factory on Twitter.

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Hedge funds are going through a rather rough stage right now. Not just the cryptocurrency service providers, but more traditional offerings are feeling the pressure as well. The following hedge funds – ranked by loss amount – have seen their total valuation plummet significantly over the past few years.

#6 Fir Tree

The past few years have not been great for Fir Tree. Originally founded in 1994, the hedge fund reached its peak in terms of asset worth back in 2015. At that time, the company managed $13bn worth of assets. Fast forward to today, and that number has shrunk to $7bn. A more than respectable number still, but one that shows things are not heading in the right direction.

#5 Tricadia

The Tricadia hedge fund has not seen the best of times ever since reaching $4bn in assets back in 2015. Although the firm never grew into a market leader, it earned great respect in the industry. Even so, the firm currently controls $1.8bn in assets, which is still a decline of over 50% compared to a few years ago. Remaining a competitive hedge fund is a lot more difficult than most people assume.

#4 Tudor

The Tudor Investment Corporation launched the Tudor Fund several years ago. By leveraging their financial expertise, the company quickly got pushed to the forefront of the financial industry. At its peak in 2008, the company controlled $22bn in assets, which was a massive amount at that time. The financial crisis had quite an impact on Tudor, as the firm now has just $7bn in assets remaining. A 66% decline in ten years is not promising.

#3 Discovery

Although this hedge fund has nothing to do with the TV channel, Discovery’s hedge fund venture has not been overly successful in recent years. Back in 2014, the firm controlled $15bn in assets, making it one of the more successful companies post-recession. Unfortunately, their holdings plummeted to $3.8bn in very quick succession. This is a rather common trend among hedge funds over the past ten years.

#2 Brevan Howard

It is safe to say things have taken a turn for the worse for the Brevan Howard hedge fund. The company manages assets for over 200 institutional investors, yet has seen its total holdings decrease from $40bn in 2013 to $8bn in 2018. An 80% reduction in assets shows hedge funds are struggling significantly at this stage, which is always worrisome.

#1 Litespeed

By far the hedge funds suffering from the most negative momentum has to be Litespeed. The firm quickly rose to success by the time 2014 came around, as its assets rose to $3.4bn. Four years later, the company just manages $303m in assets, which is a 90% decline overall. There isn’t enough money flowing into hedge funds these days, as it seems cryptocurrency-related offerings have taken center stage, for the time being.

The post Top 6 Traditional Hedge Funds Noting a Steep Decline in Managed Assets appeared first on NullTX.

The former CEO of a cryptocurrency company has been sentenced to prison time and ordered to pay $9 million in restitution due to his company’s role in a major Ponzi scheme that cost hundreds of investors millions of dollars. The hearing comes as the U.S. government and regulatory agencies step up their crackdown on cryptocurrency-related fraud.

A District Court Judge in Connecticut sentenced 33-year-old Josh Garza to a 21-month prison sentence followed by six months of house arrest for his role in a Ponzi scheme based around the issuance of a cryptocurrency – called PayCoin – which entitled investors to a portion of another company’s mining profits.

The scheme was conducted between May of 2014 and January of 2015 through four companies owned by Garza. These companies sold the rights and access to cryptocurrency mining operations and allowed investors to buy a portion of these operations through “PayCoin “and “Hashlets,” which claimed to give investors the rights to a portion of the profits from the mining operations.

John Durham, the U.S. District Attorney for Connecticut, spoke about the scheme, saying that “hashlet customers, or investors, were buying the rights to profit from a slice of the computing power owned by the companies.”

Although the operation seems legitimate on the surface, Garza made multiple claims that should have raised red flags for investors, including the guarantee that the price of the virtual currency wouldn’t drop below $20 per unit, because the company would prop the price using their $100 million digital currency reserve.

After pleading guilty for defrauding investors and committing wire fraud, Garza was ordered to pay full restitution to all the investors that had lost their entire investments after the operations were found to be illegitimate. The judge required that Garza pay all the investors a total of $9,182,000 in restitution and was sentenced to 21 months in prison.

Garza’s Sentencing Comes as the US Government Increases Its Crackdown on Cryptocurrency Scams

This past week, a New York federal judge ruled that Initial Coin Offerings (ICOs) fall under the umbrella of securities offerings, opening up the gates for the Securities and Exchange Commission (SEC) to move to shut down fraudulent, or potentially fraudulent, ICO operations.

The ruling came about in a case regarding a man who has defrauded ICO investors by claiming, and providing falsified evidence, that the virtual currency was physically backed by diamonds and real estate.

Judge Raymond Dearie, the judge handling the case, commented on his ruling, saying that:

“Congress’ purpose in enacting the securities laws was to regulate investments, in whatever form they are made and by whatever name they are called… Stripped of the 21st-century jargon, including the defendant’s own characterization of the offered investment opportunities, the challenged indictment charges a straightforward scam, replete with the common characteristics of many financial frauds.”

Following this ruling, the SEC immediately moved to shut down and charge two cryptocurrency scams that were defrauding investors. The first company charged was TokenLot, a self-described ICO superstore, that was charged with operating as an unregistered broker-dealer. The TokenLot team cooperated fully with the SEC, which led to light charges.

The second company that was shut down by the SEC was a cryptocurrency hedge fund, called Crypto Asset Management LP, that had falsely claimed to investors that it was the first fully regulatory compliant crypto hedge fund. The operator of this fund, Timothy Enneking, had taken over $3 million from investors, and more than 40% of his fund’s investments were considered as securities by the SEC.

It is likely that the SEC and other regulatory authorities in the U.S. will continue to crackdown on cryptocurrency-related scams in the near future.

Featured image from Shutterstock.

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The latest cryptocurrency poll has indicated that millennial women are still lagging behind in adoption of cryptocurrency.

A new survey conducted in the US with 3000 millennials, was published on September 12, 2018, by crypto finance company Circle. It revealed that currently, men invest in cryptocurrency at twice the rate of women within the millennial age bracket.

In terms of investment, 71 percent of millennials say that they have kept their investment in crypto below $1000, of which 42 percent invested under $500 and 29 percent invested between $500–$1,000. The bigger spenders or at least those investing more than $1000 represented 29 percent of the poll. 17 percent of men are planning to purchase crypto against 8 percent of women.

The gender gap which has always existed in terms of crypto investments appears not to have narrowed greatly in the US if the results of this survey give a fair indication of who’s investing between the sexes. In the UK, which has become a major crypto hub, particularly for millennials, things have improved significantly over the past year according to a recent London Blockchange poll.

Their poll conducted earlier this year showed that the number of women showing interest in investing in cryptocurrencies has gone from 6 percent to 13 percent over the last six months; almost twice the amount revealed in the US poll. A significant result of that survey revealed that women were far less likely to stress over cryptocurrency, keeping a cool head when making their crypto investments. This inference was drawn from the new Circle poll which suggested that 42 percent of millennial men were “aggressive investors” as opposed to 27 percent of women.

The figures from the Blockchange poll suggested that women in the millennials group are responsible for the increased percentage of women participants in the space, as millennials remain the dominant group worldwide in cryptocurrency investment. Another survey revealed that this group viewed Bitcoin as more trustworthy than big banks.

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Bringing cryptocurrency payments to retailers and the masses remains a very difficult task. Graft is looking to solve this problem through its universal payment blockchain. It is capable of providing an alternative payment processing network bringing cryptocurrencies to the point of sale. Below are five key advantages of using such a system, both for retailers and consumers.

#5 Payment Wallet Option

One thing holding mass cryptocurrency adoption and use back is the somewhat confusing nature of different cryptocurrency wallets. Different currencies all require their own solution more often than not. Graft offers people the option to use a mobile payment wallet or a plastic card-based solution, depending on their preference. As such, the project aims to offer a little something for everyone and users of all ages.

#4  Instant Fiat Payouts

Even though the Graft network is designed to bring major cryptocurrencies to retailers, there is still an option to convert these transactions to local fiat currency on the fly. This has been the main selling point for any cryptocurrency payment processing solution, as most merchants are still not confident in holding onto cryptocurrency balances for a longer period of time.

#3 Instant Confirmations

Another drawback of traditional cryptocurrency payments is how the confirmation times for transactions can take a while to materialize. This is especially true where Bitcoin is concerned, although most other altcoins do not fare much better under pressure. Graft ensures all transactions are confirmed instantly, both online and in-store.

#2 Integration With Existing Providers

Unlike most in-store payment solutions pertaining to cryptocurrencies, Graft will not require users to get a different set of hardware and software. Nor is there a need for additional phones or tablets to generate receipts and complete payments. Instead, the Graft solution can be integrated with leading terminal providers without making any changes to the PoS system in use. A big selling point for solutions like these, assuming it can get any real traction.

#1 Major Cryptocurrency Support

Perhaps the most interesting aspect for both retailers and consumers is how the Graft solution does not revolve around its own proprietary cryptocurrency. Instead, retailers will accept all major cryptocurrencies through the mobile point of sale app. It is fully customizable, giving store owners plenty of choices to choose from. It removes the need for maintaining multiple apps and wallets altogether, as everything is bundled into one convenient solution.

This is what makes Graft so interesting. It is a second-layer ecosystem which can run on top of every cryptocurrency on the market now and in the future. With built-in privacy solutions, sensitive information can be kept safe from prying eyes while still benefiting from the integrity of the blockchain. Graft has a lot of potential, and its main net is currently live and ready for use.

The post 5 Reasons Graft Will Bring Cryptocurrency Payments to Retailers Globally appeared first on NullTX.

Kowala is a project designed to let companies and consumers mint their own stablecoin using blockchain technology. Its dual-token blockchain prioritizes speed and security, which will make it of great value to the right parties.

The Kowala Vision

Introducing even more stablecoins is a rather controversial topic. The cryptocurrency industry has seen an influx of stablecoins in the past 12 months, and it seems Kowala wants to up the ante even further. Their native protocol uses a dual-token system to facilitate mining and stable-value payment solutions alike. An intriguing double-pronged approach which can unlock a lot of new potential use cases.

How Does it Work?

Linking a mining token with an actual stablecoin is not something one sees every single day. In the case of Kowala, the mining token is known as mUSD. It lets owners earn block rewards in the form of new kUSD – which is the stablecoin – for their mining efforts. As such, holders are incentivized to contribute to the network at all times, all the while earning new stablecoins for their ongoing contributions to the Kowala protocol as a whole.

The kUSD stablecoin is the real “valuable” token of the Kowala network. The total number of kUSD in circulation will expand based on real-time market conditions. Similar to other stablecoins, its supply can never surpass the USD in physical reserves held by the parent company. Creating inflation is not the objective of digital stablecoins.

As one would expect, the value of kUSD will be pegged to the US Dollar. There are other plans to issue any other stablecoin on the Kowala protocol at this time, and more of them may be coming to this platform depending on the current market conditions. More digitized fiat currencies to be traded freely is always a good thing, especially in this era of finance.

The Road Ahead

Kowala is looking to explore many digitized fiat currency tokens in the future. Although the kUSD will be its main bread and butter, the roadmap mentions a kCNY will be introduced later this year. That is rather interesting, as CNY trading for cryptocurrencies has been banned by the People’s Bank of China. a kRUB – for the ruble – will be released in November, with five more coins to follow in mid-2019.

The post What is Kowala? appeared first on NullTX.

Crypto markets see another upswing after yesterday’s decline, 17 out of top 20 coins by market cap in the green, Bitcoin above $6,500