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Binance Adds USD Coin (USDC) to its Combined Stablecoin Market (USDⓈ)

On the 16th of November this year, Binance announced that it was renaming its Tether (USDT) market to a combined Stablecoin Market (USDⓈ). The exchange explained that the move was to support more trading pairs with different stable coins as a base. The exchange went on to clarify that the new category is not a new stablecoin in itself.

Please note that USDⓈ is not a new stablecoin: it is the symbol of Binance’s new stablecoin market.

Since then, the exchange has added Paxos Standard Token (PAX) and TrueUSD (TUSD) to the new stablecoin market.

Binance Adds USD Coin (USDC) to Its Combined Stablecoin Market

This then left one stablecoin that is yet to be added to the new market: USD Coin (USDC). The exchange has now announced that it will be adding the following trading pairs with USDC as a base to its Combined Stablecoin Market.

  • BNB/USDC
  • BTC/USDC
  • ETH/USDC
  • XRP/USDC
  • EOS/USDC
  • XLM/USDC

Although the pairs are visible on the platform, the pairs will not be active for trading till the 15th of December, 03:00 am (UTC). Existing USDC pairs with BNB and BTC as a base will be removed and delisted by the 16th of December, 03:00 am (UTC). All existing orders of these pairs will be canceled at this time.

A Brief History of USDC

USDC was introduced to the crypto and trading community by the CENTRE Consortium: a joint venture co-founded by Circle and Coinbase. The main goal of the stable coin was to establish a standard for fiat on the internet and provide a governance framework and network to foster global, mainstream adoption of asset-backed stablecoins. USDC is an ERC20 token.

What are your thoughts on the new Stablecoin Market by Binance that gives traders extra options of stablecoins? Do you think it is a good idea? Please let us know in the comment section below. 

[Image courtesy of Centre.io]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Binance Adds USD Coin (USDC) to its Combined Stablecoin Market (USDⓈ) appeared first on Ethereum World News.

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BitMEX Trades 1 Million Bitcoin (BTC) In a Bearish Market, Setting Industry Record Yet Again

For the second time in two weeks, BitMEX has hit a daily turnover of 1 Million Bitcoin (BTC). This milestone was reached on the 8th of August 2018 and during a period of uncertainty in the crypto markets due to a declining BTC value. The exact 24 hour trading volume was 1,027,214.62 Bitcoin and the last time the exchanges surpassed 1 Million was on the 25th of July this year. A screenshot of the volume recently reached milestone can be found below:

BitMEX surpassing 1 Million BTC trade volume in a day. Source, Coinmarketcap.com

BitMEX CEO and Co-founder Arthur Hayes  is quoted as saying the following with regards to the 1 Million BTC milestone:

Once again meeting our own record of 1 million bitcoin traded within 24 hours is a major milestone for the crypto-coin market and testament to the strong community BitMEX is growing. In continuously engaging with, and truly listening to, the needs our customers, we’ve recognized an overwhelming demand for innovative financial products that give the crypto market greater versatility. It’s thanks to our discerning community that we have launched our two innovative, new products: the ETHUSD perpetual swap product and UPs and DOWNs.

In the case of the ETHUSD perpetual swap, the exchange was encouraged to offer the product after the success BitMex’s XBTUSD swap product. Customers can now trade ETHUSD price at leverage, while avoiding issues with  settlement and large amounts of basis inherent to typical futures products. Within one week of launching, this product is now one of the most liquid instruments globally to trade the Ethereum / USD pair.

With regards to the UPs and DOWNs, BitMEX users can take advantage of call and put options. UPs, or Upside Profit Contracts, work similarly to traditional stock call options by giving token holders the right to purchase crypto-coins on BitMEX at a specified price for a predetermined period of time. DOWNs, or Downside Profit Contracts, act like traditional put options, letting token holders sell a crypto-coin on the platform at a specified price.

Mr. Hayes would go on to add the following with regards to the 2 new products:

The ETHUSD perpetual swap and UPs and Downs represent new and exciting territory for BitMEX and an unprecedented opportunity for the crypto community to experiment with more sophisticated financial instruments on an easy-to-use and highly secure trading application…With futures, swaps, and now options available on BitMEX, we are making great strides toward offering a wealth of derivative products designed for the crypto-coin industry.

In conclusion, BitMEX (Bitcoin Mercantile Exchange) has proved once again that it is one of the most liquid and exciting crypto trading platforms in the crypto-verse. The exchange was founded in 2014 and as a result of harnessing the financial derivatives experience of its staff. The exchange’s mission is to professionalize the trading of bitcoin and other cryptocurrency derivatives. By offering a fast, safe, and liquid way to hedge crypto vs. fiat currency risk, BitMEX hopes to spur bitcoin and general cryptocurrency adoption by consumers and merchants.

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XRP-Centric SBI Holdings Partners with China’s OneConnect that serves 468 Banks and More

In the most recent financial report by SBI Holdings, the firm had mentioned how it would continue to expand its reach globally by creating synergies/partnerships/joint ventures through the establishment of a new ecosystem based on digital assets that will further achieve the following:

  • Expand investments into domestic and overseas digital asset based ventures
  • Pursuit of synergies within the digital asset ecosystem, and synergies with the existing financial ecosystem
  • Create necessary conditions for revitalization of cryptocurrency market

In line with this vision, the firm has formed a Joint Venture with Ping An’s subsidiary, OneConnect. The latter is among the largest finetech SaaS (Software As A Service) platforms in China. Ping An is a Chinese holding conglomerate whose subsidiaries deal with the industries of insurance, banking and financial services. In this case, its subsidiary of OneConnect, offers finetech service solutions to small and medium-sized banks.

To be precise, OneConnect serves 468 banks and 1,890 financial institutions in China by tapping into Ping An’s resources of AI, Blockchain technology, Bio-metric Identification and cloud technologies. OneConnect also serves banks in Hong Kong and ASEAN (association of Southeast Asian Nations) countries.

A representative of SBI Holdings is quoted as saying the following with regards to the new joint venture:

We believe the cooperation between SBI and Ping An will also benefit the overseas expansion of Japanese regional financial institutions in China.

The terms of the agreement include SBI holding 60% of the joint venture while OneConnect and An Ke (another subsidiary of Ping An) jointly owning 40%.

This joint venture is particularly important for this makes it possible for other partners of SBI, such as the Ripple Company, to also benefit from this new development. The Ripple company and SBI Holdings have been partners for over 2 years and have formed the firm known as SBI Ripple Asia Co.

The objectives of the latter company is to achieve the following:

  • To promote currency and financial system innovation on the blockchain
  • Conduct business development in Japan and Asia
  • Provide a settlement platform utilizing blockchain technology in Japan and the entire Asia Region

As earlier mentioned, the joint venture with OneConnect further expands SBI’s reach – and potentially that of SBI Ripple – into China.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Owner of NYSE Launching New Bitcoin (BTC) Market is a Double Edged Sword, says Wallstreet Veteran

The metaphor of something being a double edged sword means that something has the potential for being favorable and also unfavorable. Picture the blade which is sharp on both ends. It is a threat to both the opponent and an inexperienced user. This concept can be applied to the recent news of the owner of the NYSE (Intercontinental Exchange) launching a new Bitcoin (BTC) market through its new company of Bakkt.

Caitlin Long, who is a 22 year Veteran at Wallstreet and has been active in Bitcoin since 2012, thinks that the Bakkt company can have some significant benefits to the crypto ecosystem as well as harming it. She stated the following on Forbes magazine after the ICE announcement on August 3rd:

This is a major step in the mainstreaming of bitcoin and cryptocurrencies. But it’s also a double-edged sword, because it’s likely the beginning of Wall Street creating financial claims to bitcoin out of thin air (and not backed by actual bitcoins), which could offset some of Bitcoin’s algorithmically-enforced scarcity. Perhaps that’s why bitcoin’s price declined slightly after today’s announcement by ICE.

According to Ms. Long, the positives of Bakkt include the following:

  • attracting institutional investors to cryptocurrencies
  • solve the custody problem that has kept many institutional investors in the sidelines all along. Now there is a qualified custodian which the SEC requires for investment advisers that manage $150 Million or more
  • help regulators become more comfortable with the sector once they see ICE involved
  • it will attract corporate issuers to raise capital using the Bakkt ecosystem. Cryptocurrencies offer issuers the prospect of covenant-free and preference-free capital at low cost

The negatives of the Bakkt launch according to Ms. Long in her commentary to Forbes can be summarized as follows:

Wall Street’s only shot at controlling cryptocurrencies is to financialize them via leverage—by creating more financial claims to the coins than there are underlying coins and thereby influencing the underlying coin prices via derivatives markets.

Financial institutions [will begin] to create claims against cryptocurrencies that are not fully backed by the underlying coins (which could take the form of margin loans, coin lending / rehypothecation, coin-settled futures contracts, or ETFs that don’t 100% track the underlying coins at any given moment). None of these are happening in the market yet, though.

She continued to explain that:

Bitcoin has algorithmically-enforced scarcity, and that’s a big part of what gives it value. If Wall Street begins to create claims to bitcoin out of thin air, unbacked by actual bitcoin, then Wall Street will succeed in offsetting that scarcity to some degree.

The same pattern happened in commodities markets, such as gold and silver. It also happened in credit derivatives, which, before the 2008 financial crisis, had grown to 10x the size of the underlying corporate bond market and had become the proverbial “tail that wagged the dog” by driving the price of the underlying corporate bonds.

The same institutional investors that the crypto-community have been asking for, might end up being the ruin of the industry as was seen during the 2008 Wallstreat Financial Crisis. But luckily for Bitcoin and according to Ms. Long:

There’s reason to be optimistic, thanks to HODLers, because bitcoin is an equity-based asset that can only be financialized if holders bring their coins into the financial system.

Bitcoin already has trust and transparency precisely because no centralized institution controls it.

Thankfully, for existing bitcoin investors, HODLers are likely to make that difficult by storing most bitcoins outside of the financial system and making it the epitome of “hard to borrow.

[Photo source, Livestrong.com]

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Bitcoin Dominance Drops Significantly, Further Worrying BTC Investors

The cryptocurrency markets are experiencing some sideways movement this morning (UTC + 3) with the total market capitalization showing some stability above $250 Billion and at current levels of $254.65 Billion. The same cannot be said about the dominance of the King of Crypto in the markets. Bitcoin (BTC) dominance seems to be declining at the current levels of 47.4%. BTC has dropped from 48.76% levels witnessed less than 3 days ago on August 3rd.  This is a drop of 1.36% in the same time period.

BTC Dominance on August 3rd. Source, coinmarketcap.com

The dominance of Ethereum (ETH) has however increased to current levels of 16.26% from those of 15.62% witnessed on the 3rd of August.

The same August 3rd saw BTC 24 hour trade volumes of $4.6 Billion. That volume is now at $3.798 Billion indicating a significant drop in the market action of Bitcoin. The volumes of ETH have dropped from $1.88 billion to current levels of $1.4 Billion in the same time period.

Looking at the preferred stable coin – Tether (USDT) – during times of decline in the markets, its daily trade volume has been surging on a constant basis in the last month or so. This indicates that investors are choosing to hold on to USDT whenever there is market turmoil.

Regular daily trade levels of USDT are fluctuating from $1.5 Billion to around $3 Billion. But on the 28th of July, this value reached a staggering $13.487 Billion in one day.This is a clear indication of a worried or overly cautious Bitcoin and Ethereum investor base.

What also has been noted in the last 24 hours, is that some alternative coins have gained significantly in the markets indicating a shift from the top 5 crypto assets of BTC, ETH, XRP, BCC, EOS and LTC.

Ethereum Classic (ETC) is still basking in the news of a confirmed addition on Coinbase and is currently up 4.26% in the last 24 hours and trading at $17.32. ZCash (ZEC) is also up 3.37% in the last 24 hours and currently trading at $182. DigiByte (DGB) is up 3.58% in the last 24 hours and currently trading at $0.0334.

MOAC current value. Source, coinmarketcap.com

The most impressive of the top 100 digital assets according to coinmarketcap.com is MOAC (MOAC) that is currently up 12.67% in the last 24 hours and trading at $4.50 at the moment of writing this.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Here is Why The Rejected Winklevoss Bitcoin (BTC) ETF is Different from The One Filed By the CBOE

The news of the rejection of the the Winklevoss Bitcoin (BTC) ETF by the SEC shook the crypto-markets immediately. This was due to the fact that many traders were confused as to whether this was the highly anticipated ETF that would send the prices of Bitcoin to the roof. It has since emerged that the Winklevoss Bitcoin (BTC) ETF was not expected to pass and that the ETF that pundits were excited about, was proposed by VanEck and sponsored by CBOE.

In a commentary to Ethereum World News, Mati Greenspan, a Senior Market Analyst at eToro stated that:

There’s a lot of FUD and confusion out there in crypto markets right now so I’d like to clarify.

One of the many reasons that bitcoin is rising at the moment on anticipation of an ETF decision from the SEC. However, too many people have crossed their E’s with their T’s and F’ed the situation.

The Winklevoss ETF that was rejected (known as Bats) was never expected to pass. The ETF that pundits are excited about was proposed by VanEck and sponsored by the CBOE, which will likely not be decided on until March.

Mr. Greenspan would also comment on SEC Commissioner Hester Peirce, who publicly disagreed with the SEC decision to reject the Winklevoss ETF.

What is notable is the reaction from an SEC commissioner who strongly disagreed with the decision to reject Bats.

In her letter of dissent, Hester Peirce eloquently elaborates on how the decision to strike down Bats “undermines investor protection” and “Dampens innovation.”

The online community has now bestowed on her the nickname “CryptoMom” and her Twitter following is currently exploding.

Commentary on the Indian Law Commission recognizing cryptocurrency as an Electronic Payment 

Mati Greenspan was also optimistic that the Law Commission recognizing crypto as an Electronic Payment was a step in the right direction in India and with regards to the cryptocurrency and blockchain industry.

I’m not an expert in Indian law, I will refrain from commenting too directly…

What is clear to me, is that having a government wing like the Indian Law Commission recognizing cryptocurrencies in any capacity is a very positive step forward.

We’ll need to watch this space very closely over the next few months. Mass adoption of Bitcoin in India could very well be the tipping point that many crypto enthusiasts are waiting for.

In a nutshell, the ETF that was rejected by the SEC was not the one everyone was looking forward to in August. This was a different one although its rejection resulted in the crypto-community being acquainted with SEC Commissioner Hester Peirce who publicly outlined why she disagreed with the rest of the SEC on this decision. Also, there is a glimmer of hope in India with the Law Commission of the country recognizing crypto as an Electronic Payment.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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