Fortress Investment Offering an Early But Discounted Payout to Mt. Gox Creditors

Fortress Investment Offering an Early But Discounted Payout to Mt. Gox Creditors

Instead of waiting another year and a half, the SoftBank Group-owned company offers a liquidity option for creditors now.

Fortress Investment Group LLC is offering the creditor of the now-defunct cryptocurrency exchange Mt. Gox an earlier payout. Since 2017, Fortress has been owned by SoftBank Group.

However, this will be a discounted payout to what the creditors would get under a trustee-backed proposal set for a vote in October. According to Bloomberg, this is the highest value that a private equity and hedge fund firm has ever offered creditors.

The Civil Rehabilitation plan from Mt. Gox’s trustee set for an October vote would refund credits about 90% of their claim value while Fortress is offering about 80%. Fortress is using a calculator constructed by Mt. Gox creditor Kim Nilsson to determine the payout value of a claim.

However, the rehabilitation plan payments are not likely to occur until mid-2022, unlike Fortress, which offers liquidity now.

While there is no certainty that creditors will approve the plan, Fortress figures investors don’t want to wait and may choose to cash out now; as such, they have been now sending out thousands of letters to Mt. Gox creators.

“Rather than waiting another 1 to 1.5 years, we are offering a liquidity option for creditors who want to receive cash or BTC now,” said Michael Hourigan, managing director at Fortress.

Creditors would get the amount owed in either cash, Bitcoin (BTC), or Bitcoin Cash (BCH) based on their deposits, under the Fortress proposal.

For years, Fortress has been buying up Mt. Gox claims, offering as little as $600 per BTC and as much as $1,300 per BTC. Bitcoin price, meanwhile, has risen to a record nearly $62k.

Japan-based Mt. Gox that was launched in 2010, was once the world’s biggest Bitcoin exchange, handling more than 70% of all BTC transactions worldwide in 2013. That is until it lost thousands of customers’ bitcoin in a hack.

Some of the holdings were found, and the trustee is working to reimburse creditors for years now as the process gets delayed by lawsuits.

Read Original/a>
Author: AnTy

Mark Cuban Compares the Ongoing Blockchain & DeFi Development to the “Early Days of the Internet”

Mark Cuban Compares the Ongoing Blockchain & DeFi Development to the “Early Days of the Internet”

Blockchain and digital goods, according to the Dallas Maverick owner, the “Money 2.0,” are the future.

Shark Tank’s Mark Cuban’s enthusiasm about the cryptocurrency market, especially the decentralized finance (DeFi) sector, continues to grow, which he eagerly shares with the world.

In an interview with the Defiant podcast, the billionaire owner of the Dallas Maverick shared that he is a DeFi and Ethereum bull and that “ETH has an advantage over BTC as a store of value.”

While his general stance isn’t changed and Bitcoin can’t be used as a currency, he believes the digital currency can become powerful enough to be a store of value.

But smart contracts is what has him more excited as it allows developers to lay the foundation for “friction-free banking.” Ethereum is the blockchain where this is all happening, and that makes ETH far more of a store of value than BTC, as per Cuban. This is why he is buying more ETH on pullbacks and not Bitcoin.

This makes sense given that Ether is outperforming Bitcoin in 2020 with 150% gains YTD compared to Bitcoin 62%. Eth also outperformed Bitcoin last year and during the 2017 bull run.

In a separate interview with Real Vision founder and CEO, Raoul Pal, Cuban talked about blockchain technology, which, if you don’t understand, “is going to smack you down and make you bleed,” he said.

“What we’re seeing right now with this communal effort, and the foundation of blockchain-type applications that people stuck at home can use to try to make money … just changed the game 180 degrees.”

To him, the development going on in the space reminds him of the “early days of the internet,” which is brand new, and “no one really knows what it’s going to be.”

That’s why the high fees on Ethereum and DeFi make sense as the billionaire points out how it was about two decades into the internet that bandwidth became available and cheap enough to make streaming possible, and “we’re only 10, 12 years into crypto after starting with bitcoin,” he said.

According to him, the evolution of blockchain and digital goods is the future, which, as we have seen Cuban himself partake in by selling several NFTs. He said,

“Now this is America 2.0. This is money 2.0. And I don’t mean currency money, I mean being able to earn money via digital has all changed. The only thing we don’t know is who are the Amazons and who are the Pets.coms.”

Read Original/a>
Author: AnTy

Bitcoin Caught Fire But Still in Very Early Innings: Anthony Scaramucci of Skybridge Capital

Bitcoin Caught Fire But Still in Very Early Innings: Anthony Scaramucci of Skybridge Capital

The billion-dollar wealth manager launched a Bitcoin Fund with $25 million investment to “democratize BTC like we did the hedge fund industry a decade ago.”

Anthony Scaramucci, founder and co-managing partner of Skybridge Capital has announced the launch of a new fund tailored to Bitcoin.

However, it is not only because the flagship cryptocurrency is on fire lately that they are betting on Bitcoin but as Sacramucci shared they “would have loved to have deployed the fund three or four months ago,” Bitcoin just went off like crazy.

However, according to him, this is just the beginning. “I think it caught fire but we’re still in very very early innings,” said Sacramucci in an interview with CNBC’s Scott Wapner. As a matter of fact, they have been busy for the last two years doing research on Bitcoin and getting comfortable with the digital asset.

After doing all the research, the billion-dollar wealth manager believes it is a store of value, and “given the monetary supply and the global central banking coordination right now this will be a very strong asset class over the next decade.”

During this research, they have also been in contact with MicroStrategy’s Michael Saylor, to do a “ton of salt talks,” which made it clear to them that “we needed to create a client-friendly product – “something with a $50,000 minimum that the mass affluent could access.” Sacramucci said,

“Until frankly there’s an ETF or there’s a customer account somewhere where people can hold bitcoin this will be a way for us to democratize Bitcoin like we did the hedge fund industry a decade ago.”

Jumping in Before Institutional Adoption Goes into Full Throttle

Skybridge Capital’s new Bitcoin fund started trading this week with $25 million of the firm’s capital. It has a three-month holding period to target investors for the long term. The fund will go live on January 4th for outside investors. Scaramucci said,

“We’re super excited.”

“You either have to accept that Bitcoin is a store of value or not. There are still skeptics out there and that’s why I think we’re in the first inning,”

And that’s why they don’t believe they are late or marking the top of the market now that BTC has rallied 118% in 4Q20 to make a new all-time high of $24,300 last week.

Bitcoin is “something that has crashed upwards in the last two and a half to three weeks” and according to him, “could go up two or three x from here.” Scaramucci believes they could be at the “precursor of an avalanche of institutional investors,” who are heading in the crypto market.

According to him, there are institutional investors not wanting to put BTC on their balance sheets in 2020 but the orders building up indicate a large swath of institutions is getting ready to do it in 2021. Given that a penny in BTC and 99 cents in cash would have beaten every other asset class, especially S&P 500 over the last decade,

“I don’t think it’s late, If anything it’s the first inning you’re about to see… that wave of early adoption by the institutional community I’d like to get our investors involved before that goes into full throttle.”

Read Original/a>
Author: AnTy

NEM In Final Stage of Testing of its Enterprise Blockchain ‘Symbol’ Before Mainnet Launch

NEM has announced that its enterprise-focused blockchain innovation dubbed ‘Symbol’ is set for a debut early next year. The announcement, which was made on Tuesday, highlighted that Symbol is in the last preparation phase before its Mainnet launch.

The NEM team is currently carrying out tests, having frozen Symbol’s iteration; this innovation is expected to introduce a hybrid blockchain infrastructure that features private and public architecture. NEM Group CIO, Dave Hodgson, commented on the value proposition in this enterprise-focused blockchain,

“Created for enterprise use, Symbol is purpose-built to be flexible to a suite of use cases, spanning regulated markets, supply chain, fintech, healthcare, government and more.”

Symbol’s scheduled Mainnet launch on January 14 will mark version 1 of the enterprise blockchain. Once it officially debuts, the platform will open up for use by businesses, token holders, and other stakeholders looking to leverage hybrid blockchain ecosystems. NEM Software CTO, Kristy-Leigh Minehan, emphasized that,

“As a hybrid network, Symbol offers a ‘best of both worlds’ scenario and more flexibility to businesses in how they manage and share data.”

According to NEM, the hybrid approach allows businesses to enjoy private and public blockchains’ benefits. These are fundamentals, such as the transparent nature of public blockchains and encryption measures/data restrictions embedded in private networks.

NEM’s Symbol hybrid infrastructure could be deployed in multiple business environments, including logistics or supply chains. As earlier reported by BEG, the team looked to tap into wine supply chain management as one of the debut niches.

Read Original/a>
Author: Edwin Munyui

Robinhood in Preparation for a Possible IPO Launch in Q1, 2021; Report

Robinhood might be planning to go public early next year, according to a recent publication by Bloomberg. This trading platform, whose popularity has risen in the past few years, is reportedly seeking advisers in the banking domain to support its Initial Public Offering (IPO) process.

Per the Bloomberg report, Robinhood could go public as soon as Q1 of 2021; sources opted to remain unidentified given this information’s private nature. However, they were also keen to highlight that the firm might change this position and abandon the IPO plan altogether.

While Robinhood’s official sources are yet to comment, this move might be a game-changer for the trading platform, given its value proposition to novice investors. Robinhood has become a darling to millennials and the tech-savvy Gen-Z, giving them exposure to various previously cumbersome assets to trade.

In fact, it is one of the popular trading platforms with access to crypto-assets and enjoys the backing of tech-focused VC’s such as Sequoia Capital. Other prominent investors that have allocated funds to Robinhood include Index Ventures, Andreessen Horowitz, Ribbit Capital, DST Global, and D1 Capital Partners.

The latest Robinhood valuation is $11.8 billion; this was after the firm raised its series G funding, which totaled $200 million. With the murmurs of an IPO, Robinhood could soon be listed in the U.S stock markets, a move that would expose the firm to more market liquidity.

Read Original/a>
Author: Edwin Munyui

Bitcoin Miners Accelerating their BTC Selling Signals Strong & Bullish Market

Today, the price of Bitcoin has jumped over $16,100 for the first time since early January 2018.

The bulls have come charging as the total aggregate open interest (OI) hit another record high.

“The bullish bias continues to ensure steep and favorable term structure for spread traders. The bulls were also in full force in the options market where the skew and the implied vol smile continues to show bullish market positioning, helped on by the contained nature of volatility,” noted Denis Vinokourov of Bequant.

Now that the velocity is improved, miners’ rolling inventory (MRI) is also currently strong.

According to this metric, which shows the year on year percent change in inventories held by miners, miners have started selling BTC again. During the bear markets in 2014 and 2018, there has been lower selling pressure.

But now they are back to selling, which Charlie Morris of ByteTree says is “bullish.”

image1

Bitcoin annual change in inventory held by miners since 2013

Selling more BTC than produced by miners has been going on for the past three months, but over the weeks, it has been gaining momentum, and currently, the one-day MRI is 140.40%.

“Miners once earned 50% of Bitcoin’s market cap! At that time, they had a huge influence on Bitcoin price. Today, higher miner selling pressure actually signals a strong market,” noted crypto exchange Bitstamp.

Keep On Mining

As we reported, the Bitcoin hash rate has recovered and is already near its all-time highs as miners switch to colder places now that China’s rainy season has ended.

After a dramatic correction, the estimated number of terahashes per second the Bitcoin network continues their recovery, which has been helped by a huge adjustment lower in the mining difficulty last week.

BTC Mining Difficulty 2020
Source: CoinWarz

The mining difficulty is expected to adjust lower once again but at a more measured pace of -6%. However, this may change with only just over 4 days left until the next adjustment.

Amidst this, publicly-traded mining company Hive Blockchain purchased and deployed 1,240 MicroBT WhatsMiner M30S machines already. This largest single purchase doubles the firm’s aggregate hash rate.

Hive’s shares, which had $1.8 million net income in Q1, gained about 490% YTD thanks to the BTC price jump.

Another publicly traded Bitcoin mining company Riot Blockchain reported over $2.4 million in mining revenue, an increase of 42% from 2019 during the same period.

After increasing its hash power in Q3, the company is further planning to expand its mining operations. Currently having a mining capacity of 556 peta hash per second (PH/s), Riot has four purchase agreements with mining manufacturer Bitmain for a total of 16,600 S19-Pro machines that are expected to be delivered and deployed through the end of Q2 2021.

Miners are simply bullish and expect the price of Bitcoin to continue to rise in the next year.

Read Original/a>
Author: AnTy

Harvest Finance Increases Bounty to $1 Million to Track the Attacker Who Stole $33.8M

Early Monday, the latest decentralized finance (DeFi) project Harvest Finance, was exploited. It was estimated that $33.8 million of the funds, about 3.2% of the total value locked in the protocol before the attack, was lost.

A couple of days before the attack, the project’s TVL surpassed $1 billion, which has now come down to a mere $300 million, as per DeFi Pulse. Since then, its FARM token has also lost 60% of its value, currently trading at $96.5.

To catch the attacker, the anonymous team behind the project has increased the bounty for identifying the hacker from $400,000, which had already been raised from $100k to $1 million.

Initially, the team said they know the person behind the hack, “who is well-known in the crypto community,” and they don’t want to dox them. As per the latest update, all that the team knows about the hacker so far is that they have an understanding of how DeFi works.

The attacker, meanwhile, is actively “money laundering” Bitcoin through various darknet mixers and crypto exchanges, including Binance, Huobi, Kraken, and Coins.ph, according to the post mortem of the incident.

The attacker reportedly exploited the effects of impermanent loss of USDC and USDT inside the Y pool on Curve.fi repeatedly.

Following the attack, funds from the shared pools, DAI, USDC, USDT, TUSD, WBTC, and renBTC, which were “not affected,” have been withdrawn.

The Harvest Finance team further said that it is taking full responsibility for the engineering error and is now working on a remediation plan for affected users.

The possible remediation techniques the team is considering include implementing a commit-and-reveal mechanism for deposits, stricter configuration of the existing deposit arb check in the strategies, withdrawals in an underlying asset, and using oracles for determining asset price. The team stated,

“We made an engineering mistake, we own up to it. Thousands of people are acting as collateral damage, so we humbly request the attacker to return funds to the deployer, where it will be distributed back to the users in its entirety.”

Read Original/a>
Author: AnTy

Ethereum Exchange Reserves on a Sharp Decline While Locked ETH Continues its Uptrend

Activity on the second-largest network is thriving.

Since early this year, daily transactions on Ethereum have been growing, hitting an all-time high last month. Although it has come down some as DeFi mania cooled down, daily transactions are keeping to July-August level.

Ethereum fees have also gone back to normal levels as the DeFi rush came to an end, which in August sent average fees to $10 for the first time, bringing Ethereum’s scaling issues into glaring light.

With the upgrade coming up to keep the fees down for another potential growth spurt, it “would mean less demand for the token because people would need to buy fewer coins to do the same operations. From developers to end-users, it will largely reduce the buying pressure,” wrote analyst Mati Greenspan.

image1

Moreover, as per Glassnode, the popular stablecoin Tether transaction volume on Ethereum also saw a 20% spike over the past 30 days. It reached a new milestone of $600 billion.

“Tether’s important role in the digital asset ecosystem… If you were to add tether’s usage on other chains such as Tron, Omni, and Algorand, the headline figure would be higher still,” said Paolo Ardoino, CTO at Tether and its sister company crypto exchange Bitfinex.

Out of the total supply of $16 billion, USDT’s supply on Ethereum has also exceeded $10 billion, representing nearly 65% of the Tether token supply on a blockchain.

7.6% of ETH’s Total Supply Out of the Market

Amidst this growing activity, Ether’s amount on exchange wallets has been declining ever since May, as per Crypto Quant. Ethereum exchange reserves have fallen to 11.8 million ETH from the mid-May high of 14.14 million ETH.

image2

This trend coincides with the ETH that hasn’t been moved in over a year, which has reached 60%.

Additionally, 8.7 million of ETH are currently locked in the decentralized finance (DeFi) sector, as per DeFi Pulse.

“7.6% of ETH’s total supply is currently locked in the DeFi ecosystem. The amount of ETH locked in DeFi increased by a record high of 3.3M in September and has grown by 5.6M in 2020. That’s 2M more than the total supply of ETH has increased this year,” as per The TIE.

image3

The only factor lagging is Ether’s price, which is currently trading around $380, up only 188% YTD and still down 75.76% from its ATH.

Read Original/a>
Author: AnTy

Morgan Stanley Head of Emerging Markets: Millennials Prefer Bitcoin (BTC) To Gold

  • Expect heightened inflation as early as 2021, Morgan Stanley’s executive states.
  • Millennials prefer Bitcoin to gold in investments.

Morgan Stanley’s executive states Bitcoin (BTC) and gold are favorable options for investors to hedge against the central banks’ expansionary monetary policies. Speaking on a First Move with Julia Chatterley’s interview on CNN, Morgan Stanley’s head of emerging markets and chief global strategist, Ruchir Sharma, further explained that when it comes to asset investing, more millennials are showing an affinity to the digital gold than its physical counterpart.

As global health teams work to kill off the COVID-19 pandemic, central banks rushed to their printers to print money to stimulate their economies. According to Sharma, the increased monetary expansion policies by the central banks will cause inflation in the economy – predicting the United States could experience it as early as 2021.

The money printing, expansionary monetary, and fiscal policies are setting investors towards looking for more stable assets to invest in, he continued.

“There is this lingering feeling out there that given what central banks are doing in terms of printing so much money, there is a search for alternative assets.”

The seasoned investor advised investors to look at gold as a possible investment asset to cover themselves from the impending inflation. He claims having “about 5% of gold in your portfolio is not a bad idea.” However, for the younger generation and more risky investors, cryptocurrencies are their choice of an investment asset.

“If you’re a bit more adventurous — and I guess it’s more to do with demographics — then obviously search for Bitcoin and other cryptocurrencies. […] I think some of the older [investors] are still buying gold, and millennials are buying more of the Bitcoins and the cryptocurrencies.”

According to a report on BEG in March, over $970 billion in wealth could move into the crypto market as the generational shift happens in the U.S.

Read Original/a>
Author: Lujan Odera

Tech is Ruling Again, The Broad Market Working in Bitcoin’s Favor

  • Technology is back to ruling the markets.

Bitcoin rallied on Monday to its highest level since early July 2019. The largest digital asset regained its mojo back towards the end of July and now stands strong as one of the best promising assets with 70% returns YTD.

BTC’s gains came amidst a wider risk-on rally in equity markets. The Nasdaq surged to a record high on Monday while S&P 500 briefly crossed above its record closing level set in February, both lifted by technology stocks.

Tech is apparently the only trade right now

“It is likely for the rest of this year we will see a continued push into technology and technology related areas of the market,” said Daniel Gerard, senior multi-asset strategist at Singapore-based State Street Global Markets.

But the lack of a stimulus package is causing some concern.

“The markets are in ‘show me the money’ mode, perhaps erring on the side of caution, not holding their breath for an imminent deal in Congress,” said Stephen Innes of AxiCorp.

“Sadly, this leaves the U.S. real economy waddling and many businesses and millions of consumers getting the short shrift.”

Although the S&P 500 is called to be overbought by analysts, any consolidation is expected to be an accumulation.

In the current environment of ultra-low rates, Bitcoin is acting as an inflation hedge. Most recent yields have gone higher, which suggests increased expectations for inflation, which can pull buyers away from risky assets. US elections are also close, and no one wants to disrupt the markets.

Adding to bitcoin’s gains is the weakening US dollar, which softened against most currencies.

Moreover, there is speculation that the Fed will adopt an average inflation target, seeking to push inflation above 2%. Seamus Donoghue, vice president of sales and business development at METACO said,

“Inflation is currently low, but real yields are across the board negative — negative real yields and the monetary stimulus/spending has driven investors to seek out inflation hedges such as gold.”

“Given its limited supply and growing institutional acceptance, Bitcoin will also likely benefit from the market seeking inflation hedges.”

Wall Street veterans like Paul Tudor Jones and George Ball have also been recommending investing in Bitcoin.

Just this month, publicly-traded $1.39 billion company MicroStrategy put $250 million in Bitcoin, and as a result, its stocks closed 15% higher.

Bitcoin not only acted as a reserve asset but also pushed the companies’ prices higher as happened with Jack Dorsey’s Square, which gained over 300% since it started BTC purchases in November 2019.

As Anthony Pomliano said, “It pays to embrace Bitcoin.”

“The best analogue for today is perhaps the Great Depression,” said Nicholas Pelecanos, head of trading at NEM.

“From the conclusion of this crisis to the years that followed, the price of gold more than doubled, rising with inflation, and it is this macroeconomic backdrop that makes Bitcoin so appealing to investors.”

Read Original/a>
Author: AnTy