Swipe Founder Burns All His Allocated Holdings ($200M), Reduces SXP Supply by 17.5%

Swipe Founder Burns All His Allocated Holdings ($200M), Reduces SXP Supply by 17.5%

Ahead of the release of Swipe V2 white paper, Joselito Lizarondo, Swipe Founder & CEO who has also founded the BSC-based lending protocol Venus, shared his decision to burn all of his 60 million SXP.

10 million SXP tokens were already burned last year; the remaining are currently worth $229 million at a current price of $4.58 per SXP.

Lizarondo shared that he is still compensated in SXP, which he holds. Any SXP earned in revenue from now on will be held on the company’s balance sheet for a long period of time, said the CEO.

By burning his entire founder supply, the total supply of SXP has been reduced by 17.5%, with an end goal of having only 100 million SXP in supply. Currently, the maximum supply is 285 million, as per Coingecko. Lizarondo said,

“This benefits the Swipe token holders from a scarcity point of view and lets me focus on my health and working with the team to push our products successfully.”

Binance currently has a large portion of SXP that it received during the acquisition. These are unlocked and, according to Lizarondo, sitting on their balance sheet. The Team treasury, meanwhile, will remain under time lock monthly release.

The company is also introducing new tokenomics for the SXP token. SXP will serve as payment currency for services rendered to its partners and as a governance token for Swipechain Network and AMM.

Swipe is now focused on V2, which is the final version, and there will be no more changes.

Version 2 aims to create a bridge between crypto and commerce for business partners paid in SXP and build a fully cross-chain decentralized automated market maker (AMM) powered by SXP.

Swipe’s business API currently powers FTX Card and Binance Card.

It is also planning to introduce a Swipe Reward Token (SRT) to Swipe Swap.

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Author: AnTy

Grayscale Cuts Down its XRP Holdings to Over 25%; Bittrex & Swipe Removes the Crypto Asset

Grayscale Cuts Down its XRP Holdings to Over 25%; Bittrex & Swipe Removes the Crypto Asset

From Nov. high, the digital asset has lost 79% of its value which crypto market participants say has now “become un-investable for any non-retail investor.”

Cryptocurrency exchange Bittrex has announced the removal of XRP markets on January 15th, 2021 at 4 PM (PST). The markets to be removed are BTC-XRP, ETH-XRP, USDT-XRP, and USD-XRP.

Customers will still have access to their XRP wallets after the markets are removed, that is “until further notice.”

Swipe Wallet is another one that is delisting the digital asset for its US-based users on January 5th at 00:00 UTC. While deposits and trading of XRP will be disabled, users will still be able to withdraw their XRP but only till January 12th at 00:00 UTC. After this, even XRP Wallet will be disabled for USA users.

This long list of crypto service providers has already dropped their support after SEC sued Ripple and its top two executives now include Coinbase, OKCoin, Crypto.Com, Bitstamp, OSL, CrossTower, Beaxy, Jump Trading, Galaxy, B2C2, Bitwise, 21Shares, Bitcoin Suisse, and Simplex.

Grayscale has also started emptying its XRP stash.

A big jump in the largest crypto asset manager’s XRP holdings was seen on Nov 10th when it increased from 26.46 million XRP to 32.04 million XRP then on Dec. 1st another uptick to 35.65 million. But it declined today to 26.46 million, which means the latest 9.19 million XRP accumulation has been liquidated, as per Bybt data.

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All the exchanges that serve US customers are taking this step which is to be expected. Those platforms that do not serve the US-based residents like Binance which accounts for the biggest share of XRP trading, are unlikely to follow suit.

However, today even Indonesia-based crypto exchange Indodax informed its users of the risk of XRP getting delisted “in connection with the United States Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, Inc which was deemed to have violated the regulations regarding securities.”

For now, so many delistings have caused the price of the crypto asset to crash hard.

Yesterday, XRP/USD tanked to $0.169, a level last seen in Sept. 2017.

“XRP has simply become un-investable for any non-retail investor. The SEC enforcement action is one thing but the liquidity drain is a bigger issue,” said a partner at crypto fund, The Spartan Group.

According to Stani Kulechov, founder and CEO of popular DeFi project Aave, these XRP delistings from major exchanges will be a stress test for CeFi lending services. “Decreasing liquidity on exchanges would result in increased liquidity risk already on top of current market risk volatility,” he said.

It has only been in November that XRP finally started pumping after topping out in early January 2018. But XRP bagholders couldn’t even rejoice in the gains for even a month that the news of SEC’s lawsuit ended up crashing the price of the crypto asset by nearly 79%.

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Author: AnTy

SBI Holdings Acquires Crypto Trading Platform B2C2 After Taking Minority Stake in July

Japanese financial group SBI Holdings subsidiary SBI Financial Services has acquired the UK-based crypto trading firm B2C2.

The deal’s financial terms were not disclosed, but with this acquisition, which was announced by the companies on Tuesday, it will make SBI the first major financial group to run a digital asset dealing desk.

Founded in 2015, B2C2 helps exchanges, brokerages, and fund managers make large trades in digital assets.

SBI first acquired a minority stake in the crypto firm in July, and its clients have already been using the platform to trade crypto assets. With the latest deal, the companies want to help the mainstream financial firms invest in cryptocurrencies. Yoshitaka Kitao, president and CEO of SBI Holdings said,

“Their (B2C2’s) vision, expertise and offering complement SBI’s, and we look forward to working in partnership as we expand our footprint across the global markets.”

B2C2’s team in Japan will now move into the SBI’s offices as part of the acquisition. Max Boonen, the founder of B2C2, expects the team to grow from the current 50 to 70 people over the coming months.

This is no surprise for the crypto market; in 2020, everyone wants a piece of digital assets as Bitcoin soars to new all-time highs, breaking the crucial $20,000 price; Altcoins are rallying as well.

S&P Dow Jones Indices and Cboe Global Markets have announced the launch of their crypto index in 2021 while several mainstream financial and insurance firms, hedge fund managers, high net worth individuals have been investing in Bitcoin as a hedge against inflation and devaluing fiat currencies around the world.

“A lot of people have been dismissive for a long time,” Boonen said in an interview.

“Bitcoin’s price at an all-time high has put concerns to rest.”

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Author: AnTy

Southeast Asia’s Biggest Bank, DBS, Launches Digital Exchange for Institutions

Southeast Asia’s biggest bank, DBS Group Holdings, is ready to launch an exchange for cryptocurrencies that will provide trading, custody, and tokenization services to institutional and accredited investors.

The Singapore exchange will have a 10% stake in the DBS’s digital exchange.

The Monetary Authority of Singapore has given in-principle approval to the new exchange to trade assets from bonds, shares, and private-equity funds, the bank said. DBS Chief Executive Piyush Gupta said,

“I believe that the time is right for this (digital assets) industry to increasingly find partnership and sponsorship from the formal banking sector.”

“There are thousands of different coins today being traded on different exchanges, and increasingly you are beginning to find that they are forming an important part of the asset allocation of wealth and private investors.”

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In Nov. 2017, David Gledhill, chief information officer at DBS, called Bitcoin “a Ponzi scheme.”

The exchange initially supports trading of Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH) against four fiat currencies: SGD, USD, HKD, and JPY. These four crypto assets account for 70% to 80% of global crypto trading volume, said the bank adding, the trading activity on the exchange would start next week.

The DBS Digital Exchange will also be using blockchain technology to provide a fundraising platform through tokenization, said the bank in a statement. Tokenization involves converting the rights to an underlying asset such as shares of an unlisted company and private equity funds into digital form, which is then eligible for trading. Gupta said,

“We are on the cusp of a massive tokenization and therefore you’ll find tokenization of all kinds of assets around the world and I think more and more exchanges will start dealing with tokenized assets.”

Earlier this week, Standard Chartered also said it would start a crypto custodian for institutional investors in partnership with Northern Trust Corp. The bank has a substantial presence in Singapore.

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Author: AnTy

PayPal CEO Reveals Big Plans for Crypto to Become a ‘Market Leader in the Digital Currency Space’

In its Q3 2020 earnings call on Monday, PayPal Holdings, Inc. (NASDAQ: PYPL) discussed increasing the utility of cryptocurrencies and to embrace new forms of central bank digital currencies (CBDC), which are just “a matter of when and how they’re done, not if.”

Dan Shulman, the President and chief executive officer of PayPal, shared that over the next year, both PayPal and Venmo will be undergoing a “fundamental transformation” that expands to crypto as well.

“We are entering a new era of financial services where our wallets and all the services around them are moving from physical to digital.”

This is why last month, the online payments company announced that they would allow its account holders to buy, sell, and hold cryptos; a decision made after a “lot of research.”

“Very Eager” Users

The service is opened in the US, for now, which will be then expanded to international markets and then Venmo platform in the first half of next year, that too in “in close partnership with regulators.”

The early reactions to this announcement has been “well beyond our expectations,” said Shulman.

“Our base is very eager for us to offer these capabilities,” which is rolled out to only 10% of the user base with a waiting list two to three times the expectations. It will be rolled out to 100% of the user base in the US in the next two to three weeks, with the limit increased from $10,000 per day to $15,000 per day based on this demand.

“We’re beginning to already see some halo effects that go on with that,” said Shulman.

“My conversations with central banks, with the regulators, with a number of folks in the crypto field, there is no question that digital currencies are going to be rising in importance, having increasing functionality and increasing prominence.”

So Much More

Shulman is “really excited” about “dramatically increase the utility of cryptocurrencies” by enabling a crypto holder to instantaneously transfer that crypto in PayPal account into fiat currency with no incremental fees charges.

Through its platform with digital wallets and its scale, Shulman believes PayPal can help shape the utility of digital currencies that ranges from interoperability between wallets, between currencies, and “importantly into our network of merchants for commerce” — a way of using crypto as a lower-cost funding mechanism.

At the beginning of the next year, consumers will also be allowed to shop across all 28 million merchants, a solution that will not involve additional integrations, volatility risk, or incremental transaction fees for consumers or merchants that will “fundamentally bolster the utility of cryptocurrencies.”

“This is just the beginning of the opportunities we see as we work hand in hand with regulators to accept new forms of digital currencies,” to be “a market leader in the digital currency space,” Shulman said.

As the company looks ahead to Q4 and 2021, they also see “multiple tailwinds from the permanent shift towards a digital economy.”

Also Read: PayPal Exploring Acquiring Crypto Companies, Already in Talks with Bitcoin Custodian BitGo

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Author: AnTy

SBI eSports Signs Pro FIFA and Super Smash Bros Ultimate Players; Will Be Paid in XRP

SBI eSports, a subsidiary gaming venture of Japanese financial giant SBI Holdings, has signed two professional players to its e-team. In an official announcement made on 16th October, the SBI e-sports subsidiary also revealed that they would be paying its player’s salaries in XRP.

Back in September, the firm revealed that they were planning on paying their player’s salaries in cryptocurrencies. The official announcement read,

“The company aims to raise awareness of the SBI Group by strengthening contact points with the digital generation, and to create synergies with the various financial services businesses of the SBI Group.”

The payment of salary in the digital token would be facilitated via SBI’s crypto-asset trading division called SBI VC Trade. However, the final decision to accept salaries in XRP tokens would lie in the players’ hands. The official signing read,

“Players will be paid in the crypto asset ‘XRP’ instead of Japanese yen based on the wishes of the player and the sponsorship contract with SBI VC Trade Co., Ltd.”

The two pro players signed by the SBI eSports include one of Japan’s top pros in the Nintendo Switch fighting game, Super Smash Bros, Ultimate player Kenji “Ken” Suzuki, and FIFA 21 player Subaru “Mikey” Sagano, who has represented the German soccer club 1. FC Nürnberg.

The signings made by the SBI e-Sports is one of a kind because of the digital asset salary clause, which was not only highlighted in the official announcement but also in the personal tweets made by the signed players.

SBI to Conduct a Security Token Offering for SBI eSports

The SBI Group is also set to conduct a security token offering for the eSports subsidiary expected to occur on October 30. The offering would see 1000 total shares up for grabs valued at 50,000 yen (about $475) per share.

SBI Group is a Ripple partner and one of the significant stakeholders in the digital asset firm.

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Author: James W

SBI Holdings Buys Japanese Crypto Exchange, TaoTao, Just Days After Binance Deal Failed

  • SBI Holdings announces the acquisition of Japanese crypto exchange, TaoTao Inc.
  • TaoTao announced on Monday that an agreement with Binance had failed.

In an announcement on Wednesday, TaoTao Inc., a Japanese based crypto exchange funded by Z Holdings (formerly Yahoo! Finance), was wholly acquired by the Japanese conglomerate, SBI Holdings. The conglomerate is celebrating its second licensed cryptocurrency exchange, as it aims to dive deeper into digital currencies.

According to the statement, SBI Holding’s derivatives and foreign exchange wing, SBI Liquidity Market, acquired 100% of the issued shares on TaoTao, the latter becoming a wholly-owned subsidiary of SBI Holdings.

“We are pleased to inform you that we have decided to become a wholly-owned subsidiary of SBILM,” TaoTao statement.

The Japanese based Financial Service Authority (FSA)-licensed exchange joins SBI VC Trade, SBI’s crypto-focused venture capital arm, as the second licensed exchange owned by SBI Holdings. Both entities will provide crypto trading services to customers across Japan and build on the crypto ecosystem experience.

Following the acquisition, TaoTao aims at maximizing the strengths provided by SBI Group to provide customers with “the latest, safe and secure crypto asset trading services,” the statement further reads.

While no official reports have been released on the deal’s value, sources close to TaoTao claim the total fee could rise to 2 billion Japanese yen, or approximately $19 million.

Binance deal with TaoTao fails.

The news comes barely 48 hours after the Japanese crypto exchange announced that the Binance deal to acquire it had failed. According to the report, the world’s largest crypto exchange was in discussions to buy TaoTao, but the deal fell through with no explanation offered.

Following the failed partnership, it is unlikely that Binance will revive its services to Japan residents this year after abandoning its services due to tough regulations from the FSA.

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Author: Lujan Odera

Targeting Institutional Investors: SBI Holdings Is Buying a Minority Stake in B2C2 Exchange

A unit of Japanese financial conglomerate SBI Holdings, SBI Financial Services is buying a minority stake in London-based crypto market maker B2C2 for $30 million.

This is yet another example of situational-focused crypto players tying up with the incumbent institutions to offer additional services to their clients. Meanwhile, SBI will be getting a new source of revenue, “as a recession has hit their core income stream of local retail traders,” said Reuters.

B2C2 will be the leading liquidity provider of SBI as the latter expands its crypto offerings to millions of its existing customers. On the other hand, the digital asset trading firm will benefit from SBI’s distribution network and financial firepower.

SBI’s balance sheet will complement B2C2’s asset-liability framework “to deliver an execution platform that will not only be a game-changer in crypto but also positions us to expand across asset classes as we set our sights on the $20bn-a-year prime brokerage market,” said Max Boonen, founder of B2C2.

On-Ramp for Institutional Investment

In 2016, B2C2 launched the first crypto-native single dealer platform. Currently, it provides liquidity to banks, exchanges, and hedge funds.

The platform already has a license to operate in Japan, and last year, the firm launched the first OTC streaming price feed and is authorized and regulated by the UK’s Financial Conduct Authority.

SBI meanwhile is launching a fully automated facility, an electronic prime brokerage built upon its single dealer platform, to provide competitive two-way prices in the funding market. This capability will expand B2C2’s existing secured financing operation, already lending hundreds of millions of dollars.

“We expect a lot of synergies with B2C2, a firm which has a large number of clients globally and offers abundant liquidity, excellent price competitiveness, and a diverse suite of products for their customers,” said Yoshitaka Kitao, President and CEO of SBI Holdings.

“We will work to develop innovative new crypto products and deepen synergies across our group of companies.”

Competition is Heating Up

Prime brokers provide services to hedge funds and active trading firms, which is a growing trend in the crypto industry.

Earlier this month, Bakkt partnered up with Mike Novogratz’s Galaxy Digital to launch a “white-glove service” for “multi-billion-dollar” asset managers looking to buy and store bitcoin.

Last month, Genesis Capital acquired the London-based custodian, Volt, to join the likes of identity Digital Assets and BitGo and build the “preeminent prime brokerage in the digital currency ecosystem.”

A week after that, Coinbase announced that it is looking to acquire Tagomi, a crypto prime brokerage platform. The deal, however, hasn’t been closed yet and is subject to regulatory approvals.

The crypto industry is fast building the infrastructure for the institutional investors who are currently driving the bitcoin market.

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Author: AnTy

ASIC Bitcoin Miner Manufacturer, Ebang, to Launch Crypto Exchange Outside China

  • Ebang International Holdings to launch an offshore crypto exchange that can potentially double their income to $200 Million. This, alongside their new consultancy venture which, will supplement their dwindling revenue by 40% in 2020 will work to reduce their overreliance in the ever-volatile cryptocurrency.al

News has now surfaced that Bitcoin equipment manufacturer; Ebang International Holdings intend to unveil a crypto exchange to operate outside China’s jurisdiction. This is in an attempt to generate more revenue for the firm.

The BTC rig manufacturer could see a revenue increment of up to 40% by the end of this year emanating from their new consultancy business that involves managing datacenters for clients. Chief Financial Officer, Chen Lei in an interview with a media outlet remarked at the potential of doubling their earnings to $200 Million with the launch of the crypto exchange. This timeline could potentially be stretched to 2022.

Dwindling Fortunes

Notably, their 2019 revenue of $109 Million was significantly dwarfed by an excess of $300 Million they generated in 2018. Generally translating to net losses in both 2018 and 2019. This is due to their overreliance in the ever-volatile BTC which, has plummeted significantly well below $4000 before stabilizing. The BTC is currently trading at $9154.21 enjoying a market volume of $15911378811 as per this writing.

The Hangzhou-based ASIC rigs manufacturer filed a $100 Million IPO with SEC this year, April. Their share price after, however, shrunk by almost 4% after June 26th IPO to fall below the projected $4. Most of the funds from the IPO would go into the production of next-gen rigs and their overseas expansion campaign.

According to Mr. Chen, almost 10% of the total revenue generated would go to facilitate transaction fees as they seek to set up a regulatory compliant exchange outside China. This was partly due to ongoing purge on crypto activities in China as they march towards realizing their own CBDC, the digital Yuan.

However, it is yet to be seen how the escalating rows between Beijing and Washington will affect Ebang’s access to US capital markets.

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Author: Lujan Odera

Japan’s Financial Services Giant, Tokai Tokyo, to Launch A Tokenized Securities Exchange

Japanese financial giant, Tokai Tokyo Financial Holdings, announced its partnership with digital asset firm Hash Dash, to build its securities token exchange. The company also owns the Tokai Tokyo Securities Exchange and is invested 500 million yen (~$4.7 million) in Huobi, Japan.

Tokenization of assets is picking up steam as more traditional financial institutions enter the industry, Tokai Tokyo’s exchange becoming the latest to venture the field.

According to a statement to Nikkei, the exchange will tokenize securities, starting with Japan’s real estate industry, then trade these digital assets on iSTOX, its subsidiary digital security exchange in Singapore.

The $64 billion Tokyo based firm raised $5 million in a round also participated by Thai’s, Kiatnakin Phatra Financial Group (KKP) back in November 2019 to build iSTOX. The digital securities exchange aim is to assist Japan-based firms seamlessly to raise capital through the exchange.

Hash Dash will be the brains behind the exchange sharing their expertise on tokenized security exchanges. The company will leverage blockchain technologies to ensure the security of funds and the transfer of assets to reduce costs.

The securities exchange started its operations earlier this year, opening a gateway to Japan’s private capital markets. The statement further states the company is exploring digitizing IPs and corporate bonds.

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Author: Lujan Odera