Cryptocurrency Focused Insurer, Evertas, Raises A $2.8 Million Seed Round Led by Morgan Creek

  • Evertas crypto insurer has received $2.8 Million cash injection from a recently concluded seed round led by Morgan Creek Capital Management.
  • Morgan Creek CEO will onboard the Evertas Board of Directors as part of the agreement.

Chicago based Evertas insurance has raised $2.8Million in a recent seed round. The insurance company, formerly known as BlockRe, was founded in 2017 by current CEO J Gdanski. They have zeroed in on the crypto realm, helping their clients reduce exposure to crypto-related risks offering expertise in insurance, Blockchain, investigation, and financial audits.

The seed round was led by Morgan Creek, an investment advisory firm that offers customized investment management facilities to institutions, wealthy individuals and families. Other investors in the investment round include Plug n Play, Kailash Ventures, RenGen, Vy Capital, and Wavemaker Genesis.

Notably, the founder and CEO at Morgan Creek, Mark Yusco, will onboard the Evertas Insurance board of Directors as stipulated in the deal. The funds raised are set to be used in an expansion plan of their customer base and product market.

According to Evertas CEO, being the only crypto-focused insurer places them at a prime position to capitalize on the lucrative crypto space, especially now that the governments across the world are turning their eyes to the industry.

Evertas’ spokesperson – Phil Anderson – highlighted that they are looking to venture into extending their vault services to cold and hot wallets for their clients. Their clientele will be comprised of mostly institutional investors, crypto exchanges, and extremely rich investors.

They were recently greenlighted by Bermuda Monetary Authority to commence operations in the jurisdiction operating as a class 3A insurer. As a small scale insurer, they are required obligated to have at least a million dollars as its minimum capital and surplus.

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Author: Lujan Odera

Binance Incubated ‘Bundle’ App Rolls Out in Africa for Cash and Crypto Social Payments

As per an announcement from April 23, Bundle now lets its users send, receive and request cash and crypto from Nigeria.

The company is planning to expand its services to more than 30 countries in Africa by the end of 2020, providing a simple crypto fiat on and off-ramp across the continent. Aside from the Nigerian naira, Bundle supports Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB). However, new fiat currencies will be added in the following weeks. The payments can be stored in the app’s wallet and processed through bank transfers or cards.

Verifications Together with Withdrawal and Deposit Limits to be Applied

The service won’t charge any fees in the beginning, but it will have deposit and withdrawal limits, also some Know Your Customer (KYC) verifications. The app doesn’t have a mobile version yet, but it’s available in Google Play, following to be released on Apple’s App Store too. Back in September 2019, Bundle raised $450,000 from Binance in a pre-seed. The company’s co-founder and CEO, Yele Bademosi, said the app may use some of the crypto app programming interfaces created by Binance.

Crypto Innovation at Its Best in Africa

Around 40% of the banked African population prefers transacting online, mostly because the low median age on the continent is 19. Here’s what Bademosi said about how Bundle was created for Africa:

“We built Bundle with the digitally native African user in mind. They are social, online, and connected across geographical boundaries. They prefer their financial services delivered digitally via mobile apps as opposed to visiting brick and mortar bank branches. We built Bundle as a mobile wallet that supports cash and crypto, and makes using crypto feel like just another digital financial transaction done on a mobile app like Venmo.”

In the meantime, the CTO at Bundle, Taiwo Orilogbon mentioned that 1.4 million Africans are using crypto nowadays, so the blockchain ecosystem being more accessible on the continent unlocks great economic opportunities for Africa, which still doesn’t have a well-developed financial infrastructure. This means crypto innovations takes place more rapidly in African countries. The crypto trading platform CryptoLocally is also trying to deal with the financial inequity in the continent, so it partnered up with Sesacash to provide innovative solutions for cross-border payments in Africa.

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Author: Oana Ularu

Bitcoin Cash Hash Rate Declines by Over 70%, Marching Towards its “Ultimate Demise”?

On April 8th, Bitcoin fork, Bitcoin Cash (BCH) had its halving that cut down its miners’ reward into half to 6.25 BCH.

However, as expected since the halving, its hash rate has dropped dramatically. From 3.58 Th/s BCH’s hash rate has fallen more than 70% in just two days of the halving to below 1 Th/s, last seen in December 2018. As such, it now represents less than 2% of the power dedicated to mining Bitcoin.

Source: CoinWarz

The main factor behind the majority of this hash rate decline could be Roger Ver himself. His pool has seen its hash rate drop by more than 90%.

BTC.com, the largest margin pool on the Bitcoin Network operated by the hardware manufacturer Bitmain is the main contributor to the hash rate. This resulted in BTC.com mining 20 out of 36 blocks which put the network at a risk of 51% attack.

This hash rate plunge also has the cost to attack Bcash for one hour from $22,000 on April 8th to $7,500 yesterday but has now risen to $11,649 in comparison to $577,596 of Bitcoin and $9,736 of BSV. BSV had its first halving yesterday and its hash rate has also started declining.

As we reported, before even the halving, the block mining started delaying which went on even after the halving and took two hours to mine the first block after the event. The network block time went 10 times more than the normal 10-minute at one-point.

Both these crypto-assets that have been enjoying a good spike even before their halving which are down today. BCH is trading at $238, -9.42%, and BSV is trading at $191, -12.33%.

Short and long-term demise of both BCH and BSV

While pointing this out, Benjamin Celermajer, the CMBI Manager of data tracker site Coin Metrics said that after Bitcoin Cash, it’s BSV’s hash rate time to fall through the roof. He also shared his earlier evaluation where he said that the halving could lead to both BCH and BSV’s “ultimate demise.”

He explained that three months following the Bitcoin Cash fork, block production was abnormally high resulting in the blockchain having 9,887 more blocks than Bitcoin despite the latter’s block production being faster. These gaps won’t close by the time of halving.

On the assumption that crypto mining is a competitive market and rational markets will mine the most profitable chain, miners will jump to BTC. They can switch between Bitcoin, Bitcoin Cash, and BSV very easily and seamlessly because they all use SHA-256.

Because BCH and BSV had its halving over a month before Bitcoin, the leading network is most profitable as such miners will switch to BTC which can be seen by the hash rate decline in both BCH and BSV.

Now if marginal cost miners start capitulating, and sell their bags as revenue decreases, this could further push BCH and BSV prices lower, further reducing their mining profitability.

This cycle will see more miners shifting to Bitcoin, making both the crypto assets vulnerable to security threats, “especially given their already low distribution of mining relative to Bitcoin.”

“This could lead to massive market fear and capitulation for Bitcoin Cash and Bitcoin SV, potentially leading to their short term and longer term demise,” said Celermajer.

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Author: AnTy

Bitcoin Cash & Bitcoin SV Halving Next Week to Put Selling Pressure on Bitcoin as Well

  • Bitcoin Cash (BCH) and Bitcoin SV (BSV) halvings to “drastically” expose them to potential 51% attacks
  • A cycle of decreased profit margins, increased selling, capitulation, and a culling of the least efficient miners to take place

Crypto community is excited about the Bitcoin reward halving next month but interestingly bitcoin forks’ halving is here.

Bitcoin Core’s (BTC) fork Bitcoin Cash (BCH) and the latter’s fork Bitcoin SV (BSV) will go through their respective block reward halving on April 8 and April 9 next week.

Meanwhile, Bitcoin Cash has laid off 50% of its employees just days before its halving.

More Miners will Turn to Bitcoin

Both these Bitcoin’s forks will have their halving one month prior to bitcoin because of the very rapid block generation in Bitcoin Cash which started right after its fork in August 2017. However, the block production rate was later normalized with an update of the difficulty adjustment algorithm.

Now, these early halvings might have a “dramatic effect” on both BCH and BSV’s hash rate, according to Arcane Research. Currently, a vast majority of this hash rate share (94.8%) belongs to the world’s leading cryptocurrency and both BCH and BSV have a meager less than 3% share.

Source: Arcane Research

The halving event could be expected to have at least a temporary halving of the hash rate as the miners switch to mine BTC because mining Bitcoin will be more profitable than BCH and BSV.

Both the forks can capture the share only if their price or fees increases drastically or hash rate halves.

A decline in hash rate means both Bitcoin Cash and Bitcoin SV will be “drastically” more exposed for potential 51% attacks.

Things could change when Bitcoin halving occurs in mid-May, however, the effect on BTC would be “minuscule” because it already accounts for almost 95% of SHA-256 hash rate.

Selling Pressure for All Three

In its latest report, Coin Metrics also discusses the effect of halving and that,

“miners are a continuous and significant source of selling pressure that has a pro-cyclical impact on prices.”

Miner-led selling pressure for all three of the cryptocurrencies is currently high which is only expected to increase further as all of them undergo their halvings. This is because all three assets share the same SHA-256 mining algorithm and miners can “seamlessly” redirect their hash power to the digital asset that provides the highest return.

BCH and BSV halving will force miners to direct more hash power to Bitcoin which is expected to increase the difficulty and further squeeze profit miners for all miners. Coin Metrics states,

“We expect miners to follow a cycle of decreased profit margins, increased selling, capitulation, and a culling of the least efficient miners from the network.

Once this cycle is complete, the miner industry should return to a healthier state that is supportive of future price increases.”

At the time of writing, Bitcoin (BTC) has been trading at $6,750 BTC -0.61, Bitcoin Cash (BCH) at $235 BCH -2.65, and Bitcoin SV (BSV) at $177 BSV -1.86.

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Author: Bitcoin Exchange Guide News Team

ICE-backed Bakkt Rolls Out ‘Limited Beta’ As a Starbucks Payment Option To Mobile Users

Some of the Starbucks mobile app will now have the option of using Bakkt Cash as payment, seeing the limited beta period for this method has started.

The news comes as the Bitcoin (BTCP) derivatives provider is pivoting towards consumer-facing services and after it made the announcement of a $300 million funding round. Here’s what a Starbucks spokesperson said about the partnership with Bakkt:

“We are currently conducting a limited test for our customers, using the Bakkt payment method. Customers can see Bakkt as an option but the test is only available at this time.”

Starbucks, a Strategic Launch Partner for the Bakkt Digital Wallet

In a statement released earlier, Starbucks said it happens to be a strategic launch partner for the dollar denominated Bakkt digital wallet. Here’s what the coffee giant had to add on the matter:

“We anticipate that a range of cryptocurrencies will gain traction with customers and, through our work with Bakkt, we will be uniquely positioned to constantly consider and offer customers new and unique ways to pay seamlessly, at Starbucks.”

Adam White, the President of Bakkt said this on Twitter about the integration:

Bakkt Didn’t Make Any Official Statement about the Partnership

While an official statement about the partnership with Starbucks wasn’t made by Bakkt, on Monday, the company published a blog post in which it describes how it wants to put Bitcoin (BTC) and loyalty points into the same place. Discussions about an offer of crypto payments and loyalty point programs have been happening since February to say the least, when Bakkt made a move to buy Bridge2, the loyalty solutions provider. Here’s what the company’s blog post reads exactly:

“At Bakkt, we take a broad view of digital assets. Whether it’s miles from your favorite airline, loyalty points from the local grocery store, or bitcoin you’ve purchased, the Bakkt app enables you to aggregate all of these assets into a single digital wallet.”

Since the coronavirus threat is continuing to grow in the US, the coffee behemoth Starbucks is applying the take-out only business model.

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Author: Oana Ularu

Bitcoin Cash Price (BCH) Tumbles 35% In A Harsh Crypto Market Crash

Today, the crypto market crashed, with a strong decline in bitcoin cash below $250.00 and $200.00. BCH to USD is down more than 35% and it is now trading well below the $200.00 support.

Key Takeaways: BCH/USD

  • Bitcoin cash price is down more than $100.00 and it broke the key $200.00 support against the US Dollar.
  • BCH/USD dived below a major declining channel with support near $247.50 on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin is also down more than 25% and it broke the $6000 support area.

Bitcoin Cash Price Analysis

Today, it was a bad day for most traders as the crypto market crashed more than 25%, including bitcoin cash price, ethereum and XRP. BCH/USD broke many supports near $250.00 and $200.00 to enter a bearish zone.

Bitcoin Cash Price

Looking at the 2-hours chart, bitcoin cash price gained bearish momentum after it settled below the $250.00 support area and the 50 simple moving average (2-hours, purple).

More importantly, the price dived below a major declining channel with support near $247.50 on the same chart. It opened the doors for more losses below the $200.00 support.

The price is down more than 35% and it even broke the $180.00 level. A new multi-month low was formed near the $166.83 level and the price is currently trading in a nasty downtrend. An initial resistance is near the $191.40 level since it is close to the 23.6% Fib retracement level of the recent dive from $270.81 to $166.83.

The first major resistance is near the $200.00 handle, above which the price correct towards the $220.00 level. The 50% Fib retracement level of the recent dive from $270.81 to $166.83 is also near the $218.82 level.

Conversely, the price might continue to move down below the $166.00 and $165.00 levels. In the mentioned case, bitcoin cash price could even test the $150.00 support area in the near term.

Any further losses could lead BCH price towards the $132.00 and $125.00 support levels. Overall, the market is super red and it could dive further.

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Author: Aayush J

Bitcoin Cash Price (BCH) Turns Buy On Dips, $332 Holds Key

Recently, bitcoin cash price gained bullish momentum and climbed above $325.00 and $330.00. BCH to USD turned buy on dips and it is likely to accelerate higher above $350.00.

Key Takeaways: BCH/USD

  • Bitcoin cash price is showing a lot of positive signs above $332.00 against the US Dollar.
  • BCH/USD surged above the key $324.00 resistance and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin is now trading above $9,050 and it could rise further above the $340.00 resistance area.

Bitcoin Cash Price Analysis

This week, there was a steady rise in bitcoin cash price above the $315.00 and $320.00 levels. BCH/USD even broke the $332.50 resistance area to enter into a positive zone.

Bitcoin Cash Price

Looking at the 2-hours chart, bitcoin cash price gained pace after it settled above $332.50 and the 50 simple moving average (2-hours, purple). More importantly, there was a break above a key bearish trend line at $324.00.

The price extended gains above the $344.00 and $350.00 levels. A high is formed near the $352.83 level and the price is currently correcting lower. It is trading below the 23.6% Fib retracement level of the upward move from $332.61 to $352.83.

An initial support on the downside is near the $343.20 level. Besides, the 50% Fib retracement level of the upward move from $332.61 to $352.83 is near the $342.72 level to act as a strong support.

If there are more downsides, bitcoin cash price could revisit the $332.00 support level. The 50 simple moving average (2-hours, purple) is also positioned near the $332.00 area to provide support.

Any further losses may perhaps push the price back into a bearish zone towards $315.00. Conversely, the price might start a steady increase above the $348.00 and $352.00 levels.

The first major resistance is near the $355.00 level, above which there are high chances of a rally above the $362.00 and $365.00 levels. In the mentioned case, the next stop for bitcoin cash bulls is near the $370.00 level.

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Author: Aayush J

Bitcoin Purchases on Dorsey’s Square Cash App, Records Its 7th Straight Quarter of Growth

  • In 2019, Bitcoin generated $510 million in revenue and half of Cash app’s Q4 earnings
  • In 1Q20, the company is projecting up to $715 million in transaction and bitcoin costs

According to the financial report of the quarter four of Twitter founder and bitcoin proponent Jack Dorsey’s Square, customers bought $178 million of Bitcoin.

In total, the peer-to-peer payments and stock trading Cash App generated $361 million in revenue, half of which came from bitcoin trading. During the entire 2019, the cryptocurrency brought in $510 million in revenue.

Source: Square’s Bitcoin sales

This has been Square’s Cash app’s 7th straight quarter of growth, seeing $239% of year-over-year growth. This growth has been despite bitcoin losing its value for the better part of 2018 and 2019.

In the quarter first and second of 2018, Bitcoin lost 50.74% and 8.17% of its value but gained 2.63% in 3Q18 only to lose 43.21% in 4Q18. In 2019, while the first two quarters were green by 10.34% and 161.50%, the last two recorded negative returns of 25.11% and 10.30%.

Also, the company reached 24 million active users in the three months ending Dec. 2019, which has been an increase of 60% in comparison to 2018. They exceeded the expectations of the market by raking in over $1.3 billion in revenue, a solid 41% YoY increase. As a result, the shares of Square rallied as much as 10% on this better-than-expected fourth quarter results.

About 90% of this revenue was also generated in the US and that’s why the coronavirus might have much of an impact on the company’s return this year while PayPal lowered its outlook for first-quarter revenue growth by one percentage point.

Continued Growth

The Venmo competitor rolled out its bitcoin services across the US on its Cash App in the summer of 2018 and then in mid-2019, it allowed customers to deposit bitcoin into the app. For the first-quarter of 2020, the company is projecting up to $715 million in transaction and bitcoin costs.

On Wednesday’s investor call, Chief Financial Officer Amrita Ahuja said once a user starts using the app for bitcoin buying and selling, they tend to generate 2-3 times the revenue by regular users. Ahuja said,

“We are able to efficiently acquire customers, keep them engaged and show them additional ways we can continue to add value.”

The company already has a dedicated division for bitcoin, Square Crypto that announced a software development kit last month to make it easier for applications to integrate the Lightning Network, the second 2 layer on the bitcoin network for cheaper and faster payments.

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Author: AnTy

Bitcoin Cash Dev Proposes ‘BCH Node’ To Avoid An Unwanted Chain Split, Roger Ver On Board

The Bitcoin Cash (BCH) client upgrade scheduled for May, 2020 has raised heated arguments on some of its aspects. However, one BTC developer on Github by the name ‘ftrader’ is creating an alternative for the ‘disputed’ Bitcoin ABC v0.21.0 client.

According to ftrader’s post on reddit, the proposed version is unfit for upholding blockchain integrity. The developer defended this position by noting a chain split possibility in the near future due to lack of an activation method and consensus.

Bitcoin Cash Node (BCH Node)

In a bid to prevent the underlying risks, a group of BCH developers have come up with ‘BCH Node’ as a substitute to Bitcoin ABC v0.21.0. Basically, the former is a minimally altered version of the latter. The BCH Node as a modified client version will exclude a diversion code, signal and activation prompts for Coinbase rewards.

Current Bitcoin Cash ABC users will receive the proposed alternative as a ‘drop in’ replacing their old ecosystem. Notably, Roger Ver supports this version; the strong BCH advocate commented under ftrader’s post; “Looks like we now have the right software to run for the May 15th upgrade”

In addition, significant players in past BTC forks are set to contribute in the development of BCH Node. Some of the participating developers have featured in Bitcoin Cash ABC, Bitcoin Unlimited and Bitcoin XT forks.

A Proposed Developer Tax on Bitcoin Cash

Bitcoin Cash in its proposal has suggested a developer tax in the new client upgrade; this is meant to contribute towards growing the platform’s infrastructure. The proposal was however met with a resistance forcing BCH to review the tax from an initial 12.5% to 5%.

BCH came out to clear the air highlighting that they need to keep innovating within the Bitcoin Cash platform or face the risk of going down. It is still unclear what will be of the new BCH client version but some skeptics are of the opinion that this is an avenue to mint more coins.

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Author: Edwin Munyui

China’s Digital Yuan will “Certainly Erode the Dollar’s Primacy in the Global Financial Market” – Deutsche Bank Report

  • Cash to remain part of the economy for decades to come but digital payments will grow at “light speed”
  • Mobile payments to quadruple in the next five years while blockchain wallets by decade end
  • Cryptocurrencies have the potential to revolutionize payment standard

The latest research on “The Future of Payments,” by Deutsche Bank titled “Part I. Cash: the Dinosaur Will Survive … For Now,” talks about the existence of cash even though there would be a transition to the digital payments.

The first in a three-part series where the bank forecasts trends in cash, online, mobile, cryptos, and blockchain, it predicts that cash will be part of the economy for decades to come because people have developed a deep-rooted trust in the paper during uncertain times.

Factors contributing to Cash‘s long-term existence involves the paper money being easier to monitor the spending, faster to pay, really convenient, accepted almost everywhere, a secure method of paying, and keeping the purchases anonymous. Cash is also easier to tip and to avoid cyber-attacks on users’ money, said the 3,600 customers surveyed across the US, UK, China, Germany, France, and Italy by the bank.

Digital Payments to Grow at “Light Speed”

While cash will exist, this period will also see digital payments growing at “light speed,” which it says would lead to the extinction of the plastic cards.

Despite encountering regulatory hurdles, blockchain wallet users continue to “mirror” the Internet users which the bank expects to hit 200 million, quadruple, by the end of the decade.

Over the next five years, the German multinational investment bank says mobile payments are expected to quadruple, the effects of which are expected to arrive sooner in emerging markets.

“As China (and India) develop electronic, crypto, and peer-to-peer strategies, the epicentre of global economic power could shift,” it says.

The bank points out how China is already working on a central bank-backed digital currency that could be used as “a soft- or hard-power tool.” Companies in the country are, in fact, forced to adopt a digital yuan which Deutsche Bank says “will certainly erode the dollar’s primacy in the global financial market.”

Further experimentation expected in a post-financial-crisis environment

While providing a detailed explanation of the most famous cryptocurrency Bitcoin, it notices that BTC is a highly volatile currency. To minimize the fluctuations, fiat-backed stablecoins have been embraced whose “price stabilisation usually requires some kind of trusted intermediation or centralised infrastructure.”

Cryptocurrencies, the banks says is still in the early adoption stage but “we should expect further experimentation to take place in the context of a rapidly digitising society and a post-financial-crisis environment.”

As for the crypto adoption, though stores have started accepting cryptos as a payment method, the number is small but the growth trend is noticeable among online travel booking platforms and through retailers like AT&T and Newegg.

Payments made by Bitcoin have also taken off but they still represent a “tiny fraction” of global payments.

“Nevertheless, cryptocurrencies have the potential to revolutionise payment standards,” said Deutsche.

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Author: AnTy