Crypto Lender Nexo Now Allows Retail Investors To Use PAX Gold (PAXG) As Collateral

Renowned crypto lending firm Nexo has opened up the possibility of retail investors to use PAX Gold (PAXG) as a collateral option against loans. The firm had previously launched a pilot scheme on the same but the services were only available to institutional investors only. The pilot saw a high demand for the gold-backed credit lines and the firm has decided to extend the service to retail investors.

The announcement signifies that collateralized borrowing backed by high-grade gold can be extended to everyone and not only the rich.

PAX Gold token was introduced in September last year and is entirely backed by as well as redeemable for actual gold which is currently kept in Brink’s vaults. Every token is backed by ‘fine troy ounce of London Good Delivery Gold’ that allows the user to own gold which is a safe-haven asset. Tokenization adds to the convenience of the safe-haven asset.

During the pilot phase, there was a high demand for its gold-backed credit among the institutional customers such that the firm had to invest an extra $5 million in PAXG to satisfy the investors demand.

The expanded scheme that will rope in the retail customers will enable everyone to take advantage of gold-backed PAXG assets using it as collateral within the Nexo platform.

According to Nexo co-founder, gold backed PAXG is highly relevant more so during high volatility times like currently and majority of retail clients have been seeking for such a service. He explained:

“Especially in high-volatility times, as in the present, gold is sought after by many of our retail clients and we have worked towards reflecting their wishes.”

The crypto loans sector has been growing rapidly in the recent past as the majority of crypto owners or holders are looking to use their assets as collateral as opposed to liquidating them.

Nexo enjoys the backing of Michael Arrington, TechCrunch founder, and was able to raise $52.5 million during a private token sale back in 2018.

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Author: Joseph Kibe

Record Demand for Gold Amidst Supply Crunch & No Way to Move the Physical Bars

As analyst Luke Martin puts it in bitcoin terms, “gold is going through un-announced (refiner) halvening.”

The demand for safe haven asset gold is surging and the price of the precious metal has increased 5.6% yesterday but with mining operations slow, the bullion is expected to rally to new heights. This has been the largest one-day dollar gain for the metal since November 1984. The move came on the back of the Fed’s decision to unleash unlimited QE.

Meanwhile, a crunch in supply is currently being witnessed. Three of the world’s largest gold refineries that process a third of global annual supply reported on Monday that they have suspended the production in Switzerland for at least a week. This has been on the back of the mandatory closure imposed by the local authorities to prevent the spread of coronavirus.

Dublin-based GoldCore said it “experienced record demand in recent days and the global supply of gold and silver bullion coins and gold bars has quickly evaporated.”

Retailers are already reporting shortages and delays of 15 days on shipments while the demand has gone up to five times the normal daily amount.

Moreover, the supply routes are strangled because of the lockouts and grounded planes, not allowing gold to be moved around the globe. The yellow metal is shipped around the world on commercial flights, linking the trading hubs with refineries and vaults. But as coronavirus shuts down the refineries, it is becoming harder to trade gold.

This led gold futures to shoot to the highest premium with the spread between New York and London gold price skyrocketing, last seen in 1980, showing how desperate investors are to find a safe haven.

The bigger problem, however, remains the shipping of gold as one puts it, “There are enough kilobars around: the issue is how to get it where it’s wanted.”

And this is exactly what the bitcoin commentator has been repeatedly talking about. Gold proponents continue to argue that there won’t ever be the need to carry the bags of gold but today as the nations are into lockdown because of COVID-19, this is exactly what is happening.

Bitcoin as a digital gold narrative gaining traction

Interestingly, just like gold, bitcoin has been seeing a jump in price, today it momentarily went to $6,990 on Bitstamp. When it comes to the past 12 months performance, while gold is up only 25%, bitcoin is up by 69%.

Though since then, the price of BTC has gone down again to about $6,600, the world’s leading cryptocurrency is preparing for its supply crunch in less than 50 days which is expected to boost its price as well.

Gold has actually become the “most used” word in Bitcoin tweets, with 63% being positive. Also, mentions of Gold in Bitcoin headlines are nearing their all-time high. “The bitcoin as a digital gold narrative has begun to gain significant traction once again,” noted crypto data provider The Tie.

However, while the adoption of Bitcoin among institutions on the basis of volume on CME is around $300 billion daily in the past few days, gold which is in the focus has its COMEX futures trading $100 billion volume yesterday and $20 billion in options.

As gold pushed higher, Goldman Sachs told its clients that it’s time to buy the “currency of last resort” which fell 1% today.

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Author: AnTy

Ultra Bullish on Gold and Crypto After USD Liquidity Squeeze: Popular Trader

  • Gold is almost back to its highs. Time for Bitcoin to get on its horse and ride
  • USD on longest winning streak since 2012

After yesterday’s jump above $6,600, today Bitcoin surged yet again to almost $6,900. From yesterday’s lowest level of about $5,700, the world’s leading cryptocurrency has jumped 20.4%.

Not just bitcoin but global markets also rose on the optimism of a strong US response. European stocks rose broadly while Asia stocks recorded similarly strong performance with the futures market suggesting Wall Street would open strongly as well on Tuesday.

Markets have been reacting to the Federal Reserve’s unlimited QE on Monday. Other markets also signaled improved investor confidence as the price of the 10-year Treasury bond fell, sending yields higher. Gold prices soared over 4% to $1,603.78 an ounce.

With “everything on the table” USD Soares

The US dollar initially slipped after the Fed announced fresh measures to supply liquidity into the funding markets but it is back on course for a 10th day rising, the longest winning streak since 2012.

greenback-perfect-10
Source: Bloomberg

“Given the big picture view, the dollar is still in a fantastic position that will be difficult to dethrone, no matter what people say,” said the chief executive officer at Eurizon SLJ Capital.

The dollar continues to rise while the Fed has basically announced an unlimited money supply to help the markets. Fed President James Bullard who recently suggested unemployment could reach 30% and GDP could fall 50% also said, “everything is on the table.”

In the recent interview, President of the Federal Reserve Bank of Minneapolis Neel Kashkari said there is “an infinite amount of cash at the Federal Reserve” further clarifying, “That’s the authority that (Congress has) given us: to print money and provide liquidity into the financial system.”

Biggest Argument for Bitcoin

And this is the biggest argument for Bitcoin yet. “Think of it less in terms of the ‘price of bitcoin’ and more in terms of the ‘exchange rate between BTC & USD.’ Now consider what happens as the supply of bitcoin remains fixed (21M) while the supply of dollars becomes infinite,” said Bitcoin enthusiast Russell Okung, an NFL player.

And that’s why bitcoin enthusiasts, investors, and traders are extremely bullish on Bitcoin. “Bullish on USD liquidity squeeze and then I’m ultra bull on gold/crypto,” said pseudonymous former crypto trader Crypto Cobain.

In a world of zero percent interest rates and unlimited QE, trader Ledger Status believes, “Bitcoin the only one that’ll hit $100k in this race.”

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Author: AnTy

Tether’s Gold-backed Stablecoin (XAU₮) Now Available For Futures Trading on Bitfinex, FTX

The crypto derivatives exchange FTX has announced the listing of Tether Gold (XAUT), whereas Bitfinex, the Tether’s company sister exchange, rolls out XAUT futures trading.

FTX users are now enabled for XAUT against the US dollar trading. Aside from the XAUT/USD pair they can use, they will also be able to buy and sell perpetual or quarterly expiring Tether Gold futures contracts. Starting today, Bitfinex users will be able to trade futures contracts on XAUT against Tether (USDT), the US dollar-pegged stablecoin.

iFinex Financial Technologies to Provide Trading on Bitfinex

Bitfinex made the announcement on Friday, saying that traders are now able to buy and sell up to 100x leverage assets at an established data and price in future. The service will be provided by an iFinex product division called iFinex Financial Technologies. iFinex is the parent company of Tether and Bitfinex.

Only certain jurisdictions will have the XAUT/USDT futures trading active, also verified users, even if Bitfinex doesn’t ask for accounts to be verified. The jurisdictions are the same with those mentioned on the Bitfinex official website. Venezuela, Syria, Iran, North Korea, Cuba and Crimea’s annexed regions’ residents are prohibited from using the service.

News Was Released After XAUT Hit the $21 Million Market Cap

Bitfinex says in its Friday announcement that this launch of futures contracts trading for XAUT will bring much more exposure to the asset. XAUT crossed the $21 million market cap on Wednesday, March 4, when it became the world’s biggest digital asset backed by gold and overtook PAX Gold (PAXG).

At the moment, XAUT’s market cap accounts for $26.8 million, whereas PAXG’s for around $18.7 million, says crypto tracker Etherscan. PAXG was launched a few months before XAUT, being the first crypto asset that could be redeemed in gold. XAUT came at the end of January 2020 and immediately rolled out trading on Bitfinex.

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Author: Oana Ularu

“Bitcoin Is A Store of Value to Rival Gold in the Digital Age” – Coinbase

  • “Gold, and bitcoin, are safe havens from fiat currency devaluation,” says US-based crypto exchange Coinbase
  • Gold is a historic store of value because of its scarcity, just as scarce bitcoin with a special property is becoming one too

Bitcoin completed its first decade with a mind-boggling 9 million percent increase in value, becoming the best performing asset of the decade. Also, Bitcoin’s value in gold rose significantly amidst the heightened global economic uncertainty.

Leading crypto exchange Coinbase which is set to cross 1 billion BTC in its storage topping any other exchanges’ holding in its latest blog says,

“Gold, and bitcoin, are safe havens from fiat currency devaluation, which historically tends to be incited by surging government debt.”

Bitcoin Armed and Ready

Recently, Coinbase CEO Brian Armstrong also recommended people to “consider crypto” in response to CBO projecting US national debt to rise to 98% of GDB in the next 10 years.

Though today people still think of crypto as “funny money” and a speculative asset class, this perspective will flip that will have millennials seeing the government’s currency as “funny money” and crypto as the “real money” that people can’t tamper with, said Armstrong.

“Why put your livelihood into something that could be manipulated or devalued without your input,” he said last week.

Now, Coinbase is emphasizing on “Bitcoin is a store of value to rival gold in the digital age,” which is armed with technological advantages, accelerating development and maturing global market.

The peer-to-peer network already has several advantages over the precious metal in terms of scarcity, auditability, privacy, portability, divisibility, and low fees.

Bitcoin is scarce like gold and has a special property too

Unlike gold and bitcoin, fiat money doesn’t have a fixed supply. The US dollar has lost over 96% of value since 1913 when the Federal Reserve took over the US banking system. Fed also has the power to generate more money “to satisfy political goals” but

“printing money has a hidden cost for all citizens, as new supply dilutes the value of existing stock.”

During this time, however, the gold price has risen from about $20 to more than $1,500 today. This is because governments can’t simply produce more. The bullion comprises only 0.00000031% of the Earth’s crust and

“there is an inverse relationship between elemental scarcity and commodity value.”

But Bitcoin not only has this scarcity but has a special property as well — it can be transported over a communications channel.

Not to mention, with the upcoming halving the stock to flow of bitcoin (will double to 50 from current S2F50) is going to be closer to gold’s 62, which is higher than any other metal commodity and the flagship cryptocurrency is “set to soon follow.”

Due to its scarcity, gold is a historic store of value and now Bitcoin with its volatility dampening over the years and adoption rising is also becoming a new-age store of value.

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Author: AnTy

Bitfinex Rolls Out Margin Trading On Tethers New Gold-Backed Token XAU₮

The crypto exchange Bitfinex has just added a margin trading for Tether Gold (XAU₮), a January 30th press release from the company’s website says.

Starting today, Bitfinex will support margin trading for XAU₮. The trading pairs will be for Bitcoin (BTC) and the US dollar (USD). According to the press release, initial equity will be at 20% for the margin trading, and will offer as much as 5x leverage.

XAU₮ Tokens Provide Ownership to Physical Gold

XAU₮ was launched on January 23, by Tether Ltd., the parent company of USDT. Every XAU₮ token constitutes sole possession of 1 troy fine ounce of gold that’s kept in a vault in Switzerland. It’s available as an ERC-20 tokens on the Ethereum blockchain, Tron Blockchain tokens will be the TRC20 tokens. Bitfinex listed XAU₮ on January 24. It will very soon allow its users to borrow funds so they can advance their trading positions. This is expected to bring more profits, even if the risks are greater, says the Bitfinex press release:

“Margin trading enables traders to borrow funds to increase leverage, offering the potential for greater profits than in traditional trading. Still, the potential for greater rewards also comes with higher levels of risk, particularly given the volatility of digital assets.”

At the same time, Paolo Ardoino, Bitfinex’s CTO agrees, as he declared:

“The launch of margin trading on Tether Gold will allow more advanced trading strategies, enabling a more sophisticated means of hedging exposure and managing risk.”

Bitfinex Also Raised Its BTC/USD Trading Pair Offer

Bitfinex also stated they have raised their BTC/USD trading pairs offer to 5x from 3.3x. To this, Ardoino commented that:

“Raising our leverage from 3.3x to 5x is a noteworthy development and is also timely given growing interest in gold and other safe haven assets amid the recent turmoil that we’ve seen in equity markets.”

Those who want more information about XAU₮ are advised to visit gold.tether.to

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Author: Oana Ularu

Bitcoin-Gold Correlation Near Record High, Investor says BTC Will ‘WAY Outperform’ the Metal in 2020

  • The (Peterson) correlation between gold and BTC climbed to 0.217, last seen in October 2016
  • Are we seeing the emergence of a new safe haven asset?

Last week, the tension between the US and Iran that rose resulted in Bitcoin showing signs of being “digital gold.”

It all started with the announcement of the Iranian general Qassem Soleimani’s death. Gold and bitcoin both jumped shortly after the news. A couple of days later, both digital gold and gold spiked together when the news about Iran bombing Iraq broke out.

Lastly, when President Donald Trump gave his de-escalation speech, the price tumbled at about the same time.

This isn’t something that happens very often. The rare occurrence of such events led industry commentators to believe that this could mean Bitcoin is becoming a “safe haven.”

Interestingly, Bitcoin’s correlation with gold has risen to 2016 levels. The (Peterson) correlation between gold and BTC climbed to 0.217 on Jan. 10. This level was last hit in October 2016 and before that in April 2013. The highest this correlation has ever been was in early October 2016 at 0.22.

The correlation between both assets was below zero about half a year ago but these levels haven’t been seen since August 2016 and strengthen the “digital gold” narrative for bitcoin.

Although, it can’t be ignored that this is just short-term price action which could be a spurious correlation. So, a long term evaluation is necessary to see if this holds any merit.

But Bitcoin has started to make a transition from a risk-on asset to becoming a safe haven as the leading cryptocurrency finds a place in the world market and investors’ portfolio.

Bitcoin already offers more crucial benefits over gold in today’s world of censorship, lack of privacy, and fear and threat of confiscation.

When it comes to being an investment with better returns, Bitcoin beats gold, with a wide margin.

In 2019, while gold surged 18%, Bitcoin price saw an increment of 90% in its value. Investor Preston Pysh expects the same trend to follow this year as well. Pysh said,

“Since March 2019, Gold has started to outperform the S&P500. I expect that trend to persist moving forward. But, I think Bitcoin will WAY outperform gold. Bonds are a disaster – they are all denominated in fiat – good luck with that long-term.”

Currently, gold is making a retracement, down at $1,550 per ounce after reaching its nearly seven-year high on Jan. 10 at $1,562 per ounce. The yellow metal could see more downside from here, according to analysts.

Bitcoin, on the other hand, has fallen from $8,450 last week to $8,080. Just like the price, trading volume has also declined from over a billion to about $533 million.

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Author: AnTy

Bitcoin Poised for a Run at $8k Says Trader but Extreme Low Volume Not a Positive Trend

  • Bitcoin, an uncorrelated asset moved along with gold as demand for safe-haven assets rose due to geopolitical tensions in the Middle East
  • Bitcoin might Moon if there is a war with Iran as it is the “best place” for flight capital – Clem Chambers of ADVFN.com
  • Trading volume meanwhile is below $200 million and dropping further on weekends

Four days into 2020 and Bitcoin saw a surge of 8% where it went from $6,850 to above $7,400.

As we reported, Bitcoin spiked in value just like gold which was because of the geopolitical tensions in the Middle East after the US airstrike killed Iranian general Qaseem Soleimani that pushed the demand for safe-haven assets.

Iran has been one of the “hotbeds” for Bitcoin adoption, propelled by the crippling US sanctions and its unstable economy.

Mati Greenspan, founder of investment firm Quantum Economics in his Friday newsletter points out how

“Until today bitcoin has largely been seen as an uncorrelated asset that does not usually react directly to what’s happening in other markets.”

Iran an unlikely driver

However, he notes that the Iranian market in itself is likely “too small and slow” to have caused this 8% upwards move in BTC price single-handedly.

What’s more likely is “one or several players have been waiting on the side for a good buying opportunity below $7,000 per coin and it seems one has presented itself.”

Economist and trader Alex Kruger also said that the narrative of Bitcoin being a safe haven and soaring because of Iran is “absolute nonsense.”

But Bitcoin might Moon if there is a war with Iran

Clem Chambers, CEO of private investors website ADVFN.com, however, says, Bitcoin will “moon” if the US has a war with Iran.

In the longer term, he says whenever there is trouble in the capital controlled countries like China and Iran, Bitcoin will be a “key asset.” This is because,

“while there are trillions in gold and oil to suck up demand, there is only a smattering of bitcoin to take the sort of buying surge a country like Iran could create were the situation to spin up into a large scale conflict.”

Bitcoin, according to him, is the “best place” for flight capital for those wanting to protect their assets.

In the short term, $8k is next

No matter the reason, Kruger sees Bitcoin heading higher.

Currently, the world’s leading cryptocurrency is trading at $7,298 with 24 hours gains of 0.72%, as per Coincodex. Meanwhile, trading volume is still low at below $200 million.

The 7-day average real trading volume has been continuously moving down. On January 1st, 2020, the volume was as low as $192 million. This level was last seen in April 2019.

During the weekends also the volume remains low. In fact, the middle of the week sees over 50% more volume than weekends, unlike earlier last year. Arcane Research notes,

“Although this could be related to the holiday period and less activity during weekends, this is not a positive trend for the leading cryptocurrency in the space.”

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Author: AnTy

Gold Value Surges Above $1,500 as Bitcoin Price Rises to $7,330 BTC/USD

Gold has just surged above $1,500 as investors are getting ready for the new year. Meanwhile, Bitcoin (BTC) is getting a nice post Christmas boost at $7,330. One of the most important things for investors is to understand whether the U.S. Federal Reserve (FED) will be cutting interest rates next year.

Gold and Bitcoin Are Getting Ready For 2020

Just after Christmas and getting ready to enter into a new year, both Bitcoin and gold have registered good performances throughout 2019. While gold surged 17% YTD, Bitcoin is up more than 90% since January, seeing a low of middle three thousand range to currently above $7,000.

Gold has been considered a safe-haven asset that is used by individuals as a store of value. In human history, gold was also used as a means of payment as well and is very useful for investors to hedge against volatility in traditional financial markets.

Meanwhile, Bitcoin wants to become a new store of value besides being useful to make cross border transactions. In the future, Bitcoin could be useful for investors if it becomes the new ‘digital gold’ as many enthusiasts are already calling it.

The current U.S.-China trade war could also be arriving at an end and the Fed may decide not to lower the rates further. In 2019, the FED cut rates three times. The U.S. economy and its financial markets are also expanding and reaching new records in terms of jobs created and stock market highs.

Some analysts consider that gold could continue growing in the future and further rate cuts could push the precious metal to over $1,600. This shows investors are still adding gold to their portfolios at current prices.

Regarding Bitcoin, the leading cryptocurrency is expected to be halving in mid-May 2020 which could eventually be the catalyst of a new bull market in the crypto space.

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Author: Carl T

DigixDAO Offers DGD Token Holders The Option To Dissolve The $56 Million ETH Treasury

DigixDAO, a blockchain project which tokenizes gold on the Ethereum platform with the DGD token, made headlines on the 29th of November when they addressed the community saying they would offer an option to its token holders to either completely liquidate the treasury or keep making grants unless the project sees some headway. Interestingly, right after the announcement, the price of the native token DGD has seen a significant bump. DGD was trading at around $10 mark on 29th and currently, it has reached $19.

The blog post was written by the firm’s CEO Kai Cheng Chng, who noted that the community from now on will be given the option to vote whether they want to keep DAO’s Ethereum treasury intact.

Digix conducted its ICO in 2016 and collected around 466,648 ETH in public sales which were worth the value of around $6 million to $7 million. Cheng mentioned that they had 386,000 ETH in their treasury but DGD token’s market cap is a mere $39 million while if we calculate the value of the ETH held in the treasury it comes to around $58 million.

Should All ICOs Offer a Token Buyback Option?

The decision by Digix has prompted a discussion in the decentralized space on whether more projects should offer a similar exit plan for unsatisfied investors. The discussion seems legit in the light of the fact that a significant majority of projects which raised 100s of millions of dollars have either turned out to be a Ponzi scheme or they are not able to make any headway in terms of development on the project.

Ryan Zurrer, an investor himself welcomed the idea and believed that more people should call out such projects who are sitting on millions of investors’ capital without doing much with it. Nic Carter from Castle Island Ventures agree with Zurrer and called the move from Digix quite mature.

Ricky Li from Autonomy, a token trading company, however, does not agree with Zurrer’s point of view and explained that most of the ICOs raise capital to develop their project and bring real-world value, so it’s highly unlikely they would be keen on buying back their token using the treasury holdings. He said,

“ICOs are not really keen on buying back the tokens with their treasury holdings since they raise money to develop, not speculate on the token price,”

Many others like Mona El-Isa, CEO of Avantgarde Finance were undecided whether it was a good move or not. El-Isa explained why the same parameter cannot be used for every project and said,

“It’s hard to generalize on whether this would be a good or bad thing for space as each situation has its own unique characteristics. Some of these tokens will become very interesting token-activist opportunities. It’s a little bit surprising that we haven’t seen much of that yet.”

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Author: Hank Klinger