Posted on

Binance Driving Close To Nasdaq In Profit, Outperforms Deutsche Bank

It is surprising to see that Binance Q1 2018 profits is greater than Deutsche Bank’s with the exchange driving very close to that of Nasdaq’s. This is telling the world that cryptocurrency has come to stay.

Above is the summation of Dovey Wan, the managing director of DanHua Capital (DHVC) and an early investor in Dfinity, ZCash, Cosmos, Kyber and Handshake.

The cryptocurrency investor on Twitter compared Binance to Deutsche Bank and Nasdaq, claiming Binance outperformed the bank in Q1.

The crypto enthusiast used pictures to depict her comparisons. Going by her post, Deutsche Bank made a profit of $146 million after considering their operation cost and 100,000 employees’ salaries.

She said:  “Binance now has like 300ish employees, NO headquarter, NO central campus, even the founders are constantly on the move intercontinentally. The friction of communication has to be tiny in order to get things done in such fashion which is unbelievable for traditional corp structure”

After she was condemned for comparing Binance with Deutsche Bank, she made another comparison:

“Someone said it’s unfair to compare Binance with Deutsche Bank (Exchange vs Bank) so I made this Now it’s apple to apple I suppose?”

In the image, she pointed that Binance is just 8 months, and has 200 employees, but made $200M at Q1 of 2018, comparing it to 47 years old Nasdaq with 4500 employees and $209M profit. She posited that Nasdaq’s 2018 Q1 profit was just $9M ahead of Binance.

Exchanges Accused Of Imbalance

Many a number of exchanges have been accused of demanding tip before they accept some cryptocurrencies be listed. While Binance was also accused of the same, there is no evidence to back it.

Meanwhile, cryptocurrency pundit, John McAfee, had earlier called for total boycott of HitBTC and other exchanges which he said were behind market manipulations and having exorbitant buy-in that is greater than the poor’s monthly income.

McAfee tweeted: “The crypto exchanges have become the thing that we have originally fought against. Their power is immense. HitBTC, for example, has increased suffering for millions of poor people who cannot afford the minimum buy-in since it is greater than their monthly income. Boycott them.”

Girl in a jacket

loading…

Posted on

Q1 2018 Binance Profits Surpass Deutsche Bank, Near Nasdaq

Binance Pulled In $200M In Q1, While Deutsche Bank Brought In $146M

To be frank, there isn’t too much of a comparison between the crypto industry and legacy capital markets, but on the exchange side of things, maybe this isn’t the case, with Binance’s Q1 2018 profits reportedly surpassing Deutsche Bank’s and nearing Nasdaq’s.

On Thursday, Dovey Wan, managing director of DanHua Capital and a crypto investor, took to Twitter to provide an interesting point of insight into the crypto industry, noting that Binance outperforming Deutsche Bank in Q1 of this year.

Backing this seemingly outrageous claim, Wan posted an image, which gave a short, yet sweet side-by-side comparison of the two firms. Deutsche Bank, which has been one of Europe’s foremost financial institutions for more than a century, pulled in a sizable profit of $146 million in Q1 2018 after giving salary to over 100,000 employees and fulfilling its operating costs. On the other hand, Binance, which was founded only in July 2017, raked in $200 million after its operational margin, topping Deutsche profits by 35%.

However, her comment’s quickly sparked some conflict within the Twitter thread, with some noting that this is more of an “apples to oranges” comparison, as both of the firms operate with an entirely different structure in separate industries.

Acknowledging this, the DanHua executive went on to make a better comparison, trying to make it more “apples to apples.” This time, she contrasted Binance and the Nasdaq capital markets exchange, revealing that Binance’s Q1 profits were ‘only’ $9 million shy of Nasdaq’s, even with the crypto exchange’s relatively small team.

While this by no means shows that crypto is surpassing traditional markets, Wan indicated that these statistics show that decentralized technologies and markets hold “disruptive potential,” writing:

Yes, there is nuance in compliance cost etc, the comparison mainly tries to illustrate an industry with exponential growth + disruptive potential. If AMZN can be accessible outside NASDAQ, why chinese investor has to pay super high P/E for local s***? Liquidity brings optionality.

Binance Rakes In Millions In Profit, Even Amidst A Bear Market

As per a previous Ethereum World News report, Binance’s CEO expects for his firm to pull in $1 billion in profits for all of 2018, even amidst a bearish market that has plagued investors since January’s all-time highs. This substantial profit figure could be attributed to the firm’s rapidly pudding user base, along with near-consistent volume levels on its over 100 trading pairs.

According to Zhao, his company has now supported over ten million customers, generating an average of $1.5 billion in trade volume each and every day. To give the user base figure a bit of perspective, Binance only had two million users at the start of 2017.

Some skeptics reasoned that the only reason why Binance could pull in such a profit is due to the suspected exorbitant listing fees requested by the exchange. As covered in early August, an ‘official’ email from Binance claimed that a fee of over $2 million should be paid for listing on the popular exchange. While this claim has since been rebutted by CEO Changpeng Zhao, many speculate that this could be the source of a good portion of the startup’s profits.

Regardless, Binance doesn’t seem to be the only firm ‘rolling in the dough’, even as the retail market all but dries up. With BitMEX, the world’s most popular Bitcoin mercantile exchange, recently ‘making it big’ with a move into one of the most expensive office towers in the world. As reported by Ethereum World News last week, the exchange, which has become well-known for offering margin trading, will pay over $570,000 a month in rent for just one of its offices, showing that the firm still has some cash to spend.

Photo by Jakub Gorajek on Unsplash
Girl in a jacket

loading…

Posted on

IBM-Powered Blockchain Platform Completes First Live Trades Via Five Major Banks

European blockchain trading platform we.trade confirmed it had completed its first live operations today, July 3, involving twenty companies and five major banks.

The blockchain platform, which claims to provide a “more efficient and cost effective way” for banks and businesses to trade worldwide, uses IBM’s Blockchain Platform, powered by Hyperledger Fabric.

Part of various blockchain solutions currently under appraisal by the banking sector, the platform counts Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Société Générale and UniCredit as its founding members.

Together, according to Dutch institution Rabobank, the collaboration highlights the banks’ ability to “innovate.”

“These trade(s) represents a great example of traditional banks innovating to meet their clients’ needs by working with we.trade,” the bank’s chief digital transformation officer Bart Leurs commented in a press release.

Currently available in eleven European countries, the platform’s expansion plans appear to depend on further lenders coming on board.

Meanwhile, bank-sponsored blockchain platforms are becoming an increasingly crowded space both in Europe and beyond. Spain’s Santander became the first to offer blockchain settlements for retail customers using Ripple in April, while remittances also form the basis for a major project between banks in Asia, also involving technology from IBM.

At the same time, other plans appear to have fallen by the wayside, Rabobank remaining silent on its ‘Rabobit’ cryptocurrency wallet project since March.

As Cointelegraph reported in June, some sources fear banking demand for blockchain services is overrated, and the technology actually has less to offer to the sector than many assume.

Posted on

Deutsche Bank, Allianz, Auto1 Partner to Create Car Financing Blockchain Platform

German insurance group Allianz and Deutsche Bank have partnered with Berlin-based car exchange Auto1 to offer auto financing using blockchain technology, Cointelegraph auf Deutsch reported today, June 7. The three partners have created a new company called “Auto1 Fintech” of which they together own more than 50 percent.

The new venture will offer insurance products and loan refinancing for car dealerships that buy Auto1’s vehicles, said co-CEO Hakan Koc In an interview with Bloomberg. Auto1, which is backed by SoftBank Group Corp., is an online exchange for used cars that buys them from individuals and then resells them to dealerships.

The loan payment and refinancing confirmations will be recorded on a blockchain. The new process will ostensibly allow dealerships to immediately refinance their purchases, rather than using a paper-based process which can tie up their equity for over two weeks. Auto1 hopes that the new blockchain platform will help the company diversify its offerings and promote customer loyalty.  According to Koc:

“We are freeing capital and our customers are more liquid as a result. It’s a win-win.”

Auto1 is seeking to become the dominant internet platform for used cars. While they are already active in Germany, they company will expand into France and Poland later this year, according to Koc. Earlier this year SoftBank’s Vision Fund invested €460 million ($540 million) in Auto1, valuing the company at about €2.9 billion ($3.4 bln).

Other automotive companies around the world are testing blockchain technology applications ranging from simple financial transactions to autonomous driving support. In a pilot project, Daimler AG, the auto giant behind Mercedes-Benz, launched a blockchain based program to reward eco-friendly driving. Drivers who practice environmentally-friendly driving habits i.e. smooth and safe driving at low speeds, will receive MobiCoins, which they can then exchange for VIP tickets to events and other rewards.

In March, American automotive giant Ford Motors filed a patent for a vehicle-to-vehicle communication method that involves the exchange of crypto tokens to manage traffic flow. One example of a potential interaction would be if a driver were running late for an appointment, they could request to pass other vehicles for the next 10 minutes in exchange for a certain number of tokens.

Posted on

UBS Chairman: Cryptocurrencies Are ‘Highly Speculative Investment Vehicles’

UBS chairman Axel Weber has stated that Switzerland’s largest bank will not offer its customers trading in Bitcoin and other cryptocurrencies, reported Cointelegraph auf Deutsch May 3.  Weber called for stricter controls on cryptocurrencies, stating “[t]hey [cryptocurrencies] are often not transparent and, therefore, open to being abused,” in a speech in Basel Messe, Switzerland.

According to the chairman, virtual currencies are at best “highly speculative investment vehicles,” and at worst they “facilitate the financing of terror, money laundering, and other criminal activities.” In his view, cryptocurrencies do not have the characteristics of a currency at the moment, they are far too volatile, and are rarely used to make proper payments.

However, Weber admits that he sees opportunities in crypto’s underlying technology, blockchain: “[e]verything that makes processes simpler, faster and more secure is beneficial to all of us: client, shareholder or bank.”

Weber’s recent remarks about crypto was not the first time he criticized the technology. Last year, he told the Neue Zürcher Zeitung am Sonntag that Bitcoin was not money, stating:

“Because money has three functions to fulfill: it has to be a means of payment – as such, Bitcoin is not universally accepted. Second, money is a measure of value. But there are no prices that are written in Bitcoin. And third, it must be suitable as a store of value. Bitcoin does not fulfill this condition either since the price of Bitcoin is not stable. A fundamental disadvantage of Bitcoin is that the number of coins dispensed is limited.”

Weber is not alone in his criticism of cryptocurrencies. In November of last year, Deutsche Bank issued an official warning to its clients regarding investment in Bitcoin. In January of this year, Thomas Mayer, ex-chief economist at Deutsche Bank, described cryptocurrencies as a “bad bet” and speculative objects of unknown risk.

In January of this year, the North American Securities Administrators Association (NASAA) and the US Securities and Exchange Commission (SEC) warned Main Street investors against investing in cryptocurrencies and Initial Coin Offerings (ICO). One of the main reasons the NASAA cited for the warning was individual investors not being sufficiently informed about the products in which they were potentially investing.

Posted on

Germany's Largest Bank Posts Q1 Profits Lower Than Major Crypto Exchange Binance’s Q2, Q3

Deutsche Bank has released its first-quarter net profits of €120 mln ($146 mln), down 79 percent from last year, CNBC reported today, April 26. The net profits make the  Frankfurt-based,148-year old institution less profitable than the world’ top crypto exchange, Binance.

Less than a year old, and currently the world’s largest cryptocurrency exchange by trade volume Binance has to date posted quarterly profits higher than that of Deutsche Bank. On March 3, Binance’s CEO Changpeng Zhao, better know as CZ in the crypto industry, reported $200 mln in profits in the first ever second-quarter in the life of the exchange:

“In the first 3 months from inception, profits amounted to $7,500,000 USD. In the 2nd quarter, profits amounted to $200,000,000. ….Binance is aggressively recruiting, and is projected to recruit over 2000 employees this year alone, and even more next year.”

Binance’s official update this month reported third quarterly net profits of $150 mln, marginally higher than Deutsche Bank’s first quarter figures.

According to Reuters, Deutsche Bank fired 300 U.S.-based investment bankers yesterday, and plans to significantly reduce its workforce – by the end of this week, another 100 employees will have lost their jobs, as the Financial Times further reported.

Zhao had previously declined requests from Bloomberg News to grant access to Binance’s financial statements, or to provide proof of his personal wealth, which he claims is as much as $2 bln.

Deutsche Bank’s woes are not shared by all traditional financial sector players: JPMorgan Chase’s first-quarter 2018 net earnings this year were reported at $8.7 bln and Goldman Sachs’s at $2.83 bln. JPMorgan is currently testing a Blockchain platform for issuing financial instruments, but remains wary of cryptocurrencies, allegedly regarding them as innovative, yet also as a disruptive source of “competition” and “risk” to its business. Just this week, Goldman Sachs hired a crypto trader as vice president of digital asset markets in their securities division.

Posted on

World’s Largest Investment Company: ‘Interesting’ Bitcoin Is Under ‘Close Review’

Isabelle Mateos Y Lago, chief multi-asset strategist at BlackRock, an investment management corporation with $5.7 trln in assets under management, has said that the company is keeping cryptocurrency under “close review” as an “interesting development.”

Speaking to Bloomberg TV Monday, Jan. 29, the senior executive said that although cryptocurrency did not constitute “an investable asset” for the world’s largest money manager at present, it was actively tracking progress as it is “clearly evolving very fast.”

The comments temper those of BlackRock CEO Larry Fink, who last week went on record at the World Economic Forum 2018 to describe the space as an “index of money laundering” and previously implied he had no plans to enter the future Bitcoin ETF arena.

As the dust settles on Japanese exchange Coincheck’s $530mln hack, Mateos Y Lago nevertheless saw little reason to discard cryptocurrency investment entirely.

“The fact that interest has persisted despite these repeated hacks,” she continued, describing customer demand for Bitcoin at BlackRock, “despite regulators waking up and trying to catch up with this new development and gradually weeding out all the illegal uses suggests there really is something to it.”

By adopting a ‘not-now-but-later’ perspective on interaction, BlackRock echoes sentiments from Deutsche Bank’s Chief Investment Office leader Markus Mueller, who likewise told Bloomberg that while crypto is for “speculative” investors now, the next five to ten years should see regulatory progress allow its treatment as a “established asset class.”

“There’s lots of ways to get in; the question is, are they safe?” Mateos Y Lago continued on Blockchain and ICO investment opportunities, saying it was “hard to put a fair value” on them for regular investors.

Posted on

Deutsche Bank: ‘Required Governance’ For Crypto ‘Could’ Arrive By 2023

Deutsche Bank’s Chief Investment Office head Markus Mueller has suggested that “governance” that will legitimize crypto investments could exist in “five to ten years.”

Originally speaking in an interview with Bloomberg on Monday, Jan. 29, Mueller cautioned against current investment in cryptocurrency as only for those “who invest speculatively” while appealing for businesses in the sphere to work together with regulators.

“Once security and the corresponding trust have been created, cryptocurrencies can be assessed and evaluated like established asset classes,” he forecast.

“It’s possible that the required governance will be in existence in five to ten years.”

Deutsche Bank has traditionally taken a bearish view on cryptocurrencies as prices rise, cautioning in December that a major fall in Bitcoin was being “discounted as a small issue” by financial markets.

The lack of volatility in traditional stocks was driving investor interest in more risky assets such as Bitcoin, fellow Deutsche Bank analyst Masao Muraki determined in a note mid-January.

“Now, a growing number of institutional investors are watching cryptocurrencies as the frontier of risk-taking to evaluate the sustainability of asset prices,” he wrote.

Germany continues to fall behind in its treatment of cryptocurrencies at consumer level, providing a stark contrast to initiatives in other countries, such as neighboring Switzerland.

Earlier this month, the country’s central bank director nonetheless precluded comments from UK and US lawmakers at the World Economic Forum 2018 that regulation of cryptocurrency should be a joint international effort.

Posted on

Deutsche Bank Analysts: Low Volatility on Wall Street Brings Investors To Crypto

Analysts at Deutsche Bank released a note to clients on Friday, Jan. 19 stating that there is a growing correlation between the price of Bitcoin (BTC) and the CBOE Volatility Index (VIX), also known as Wall Street’s “Fear Index.”

Masao Muraki, a global financial strategist at Deutsche Bank, along with two colleagues Hiroshi Torii and Tao Xu, wrote in the note that a lack of fluctuation and volatility in the stock market is leading investors to look elsewhere to make money.

Because of institutional investors’ growing interest in more risky investments like cryptocurrencies, Muraki writes in the note, the “correlation between Bitcoin and VIX has increased dramatically:” The note contines:

“Now, a growing number of institutional investors are watching cryptocurrencies as the frontier of risk-taking to evaluate the sustainability of asset prices. The result is that institutional investors, who are supposed to value assets using their sophisticated financial literacy, analysis, and information-gathering strengths, are actually seeking feedback about the market from cryptocurrency prices (which are mainly formed by retail investors).”

Muraki’s main point is that as long as volatility in the stock market is decreasing, the price of BTC and other mainstream cryptocurrencies will continue to rise as investors continue to turn to the crypto market to make money.

While markets for traditional assets are currently relatively predictable, the crypto market is anything but stable. After breaking $20,000 per coin in mid-December 2017, BTC crashed to down below $10,000 on Jan. 17.

BTC is currently trading at an average of $11,834, down 1.02 percent over the 24 hours to press time.

Posted on

IOTA Blockchain Solutions Recognized by the Deutsche Bank

Blockchain could be the way. On a just released report by the Deutsche bank, it has been noted out that the German global banking and financial services company sees great potential and opportunities in the technology that is exploding right now. While being very bullish on the technology, the bank does not support in the same manner the cyrptocurrencies and all the enthusiasm.

Blockchain got more recognition last week, when the Australian Securities Exchange (ASX) announced thatit would fully replace its Clearing House Electronic Subregister System (CHESS) with distributed ledger technology (DLT). The fact that CHESS is in good enough shape to continue functioning at a decent level strengthens further the case for blockchain application. Deutsche Bank considers this emerging technology “one of the most innovative developments in recent years.”

According to Deutsche Bank, the advantages of blockchain are decentralization, security through encryption, transparency, and versatile application. Limited memory capacity, access permissions, scalability, and the need for trust in new technologies are listed as weaknesses. Even if scalability is considered a weak point, the report notes that IOTA has managed to resolve this issue.

The virtual network created for the Internet of Things [IoT] – IOTA, as you may know, had a recent value upward rocketing for their token MIOTA against the US Dollar. The value explosion rocketed the virtual currency to the 4th place by market cap.

iota forecast

Source: coinmarketcap

Having climbed in that surging manner by over-extending far from supporting levels and afterwards maintaining a stabilized position is more than impressive, keeping in mind that there are many cryptocurrencies that make it to the top but as speedy they come, that is how fast they leave!

During an interview, David Sønstebø and Dominik Schiener [co-founders of IOTA ] for Cointelegraph, mentioned how the development of IOTA had a significant impact over its price and popularity.

IOTA has been under intensive development for over two years and has not spent any money on marketing. In this time our focus was on making this next generation distributed ledger technology a reality. In this period we refused exchanges listing IOTA in order to ensure everything was working properly before it went to market.

This explains why IOTA is now getting a lot of attention seemingly out of nowhere. People have been following the project for a long time and then they are finally able to enter.

During the Q&A it was pointed out by the co-founders that IOTA is something goes beyond a Blockchain network by pushing away fees, scaling limitations and issues with centralization.

When you issue a transaction in IOTA you also validate two previous ones, which again reference their own two respective transactions and so on, building this Directed Acyclic Graph which we call a Tangle. As the duo continued explaining, it was made clear that this kind of structure makes the user a validator which directly leads to clearing out miners which gets rid of fees.

Promising team with a supportive community backing up the technology – IOTA.