Yield Compression Continues as More Money Seeks Yield while Avoiding Capitulation

Yield Compression Continues as More Money Seeks Yield while Avoiding Capitulation

Activity in the crypto market and DeFi has taken a hit as prices either dump or trade sideways. When it comes to the Ethereum network, gas prices have fallen to early DeFi summer levels, a mere 10 gwie which skyrocketed to 2,000 gwei for a brief period in May.

Amidst this, the total stablecoin supply has reached nearly $108 billion, adding more than $47 billion in just the last three months. trader CL of eGirl Capital said,

“The rate of USDC minting concerns me, the more money-seeking yield in crypto, the more alpha decay in futures curve. The pool of yield-seeking money only gets bigger, leverage traders seem to perpetually lose money. 1 day we might never see quarterlies above 20% again.”

While “good for price… it will make speculation way more competitive,” he added.

In the meantime, this growth in stablecoins supply is crypto market participants looking for risk-off yield farming opportunities or even traditional market participants bypassing directly investing in crypto. Glassnode noted,

“Among the bearish sentiment, liquidity remains strong on-chain as core DeFi participants seek out the highest yields in stablecoins, accumulate governance tokens, and continue to hold spot ETH.”

However, yields have already started to contract as demand for leverage slows. With funding on perpetual contracts normalizing and going negative, yield in DeFi is bound to go down even more as well. Meanwhile, the low volatility interest rates have arisen, giving stablecoin farmers and short-sellers access to cheap borrowed capital. Glassnode says,

“As long as liquidity stays strong and demand for borrow lessens, yields will continue to stay low in borrow/lend markets.”

The latest sell-off in the market saw Bitcoin crashing 55% from its all-time high and Ether experiencing a drawdown of over 66%. But while short-term ETH holders see their unrealized gains evaporate as the loss enters the capitulation zone, long-term holds remain firmly in profit.

Unlike previous times of capitulation, this time, these long-term holders have the opportunity to deploy their assets in DeFi. Fiskantes said,

“One of the reasons this down cycle could be shorter than 2018-2020. Money don’t have a reason to leave if they can stay in stables -> compressed yields -> higher yield seekers increase risk appetite -> buy pressure for “productive assets.”

As we reported, both the lending protocols Aave and Compound have seen over $4 billion in outstanding deposits.

These protocols allow ETH holders to borrow stablecoins against their deposited crypto asset, which can be used for attractive risk-off yields or speculate on token prices and gain governance tokens, stablecoin balances, and crypto assets by buying the dips, all the while keeping their exposure to ETH.

“Stablecoin yield farmers remain healthy profiteers during downturns,” states Glassnode, noting the competition is waging on in the Curve Finance ecosystem as Yearn, Convex Finance, and Stake DAO compete for deposit dominance.

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Author: AnTy

BoE Seeks Same Regulatory Oversight For Stablecoin As Fiat In Latest Discussion Paper

BoE Seeks Same Regulatory Oversight For Stablecoin As Fiat In Latest Discussion Paper

Discourse surrounding crypto assets and digital currencies are heating up, and the latest to air its view is the UK’s Bank of England.

Digital Money Fostering ‘Pertinent Questions’

In a discussion paper published on June 7, the Bank of England (BoE) gave its two cents about what it termed new forms of digital money, covering both private and public versions.

Making a case for these digital versions of payment settlements, the BoE noted in the document posted on its website, that these new forms of money could enable a faster, cheaper, and more efficient payments system. They could also help to foster better financial inclusion for the vast majority of the unbanked.

But despite the potential benefits they bring, they carry risks with their use.

Following the prospects of these digital forms of money coming with risks, the BoE governor Andrew Bailey has called for regulation for private forms of digital money. According to a report by Reuters, Bailey said private digital currencies like stablecoins would have to undergo the same regulatory oversight payments by banks are handled if there is any prospect of them enjoying widespread use.

Casting more doubt on the Brexit nation’s plans for a state-backed digital pound, Bailey said that the bank has not yet decided if it will proceed with a central bank digital currency design.

Adding further, “it is essential that we ask the difficult and pertinent questions when it comes to the future of these new forms of digital money.”

The difficult and pertinent questions have seen the BoE paper consider stablecoins – digital assets meant to track real-life currency movement in real-time – and its implication on the economy. According to the BoE paper, it is not easy to gauge the potential impact of these private digital currencies, given that they are not widely used as their fiat counterpart.

However, it pointed out that several reasons could see stablecoins preferred to bank payments given their relative ease. Following this analysis, the BoE pointed out that stablecoin issuers would be subjected to capital requirements, liquidity requirements, and a backstop to compensate depositors in the event of failure to fulfill their payment obligations.

CBDCs As Store Of Value

The BoE paper argues that a potential digital pound must ensure the broadest range of financial inclusion for users while protecting their privacy.

It is also looking into aspects like CBDCs becoming a store of value and, in that event, considering whether digital pounds should yield interests for its users. To further its goal of a CBDC adoption, the BoE said zero or negative interest rate could help incentivize the use of CBDCs for payments as it seeks wide adoption.

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Author: Jimmy Aki

LVL Crypto Exchange Eliminates Trading Fees to Compete Against US Rivals Coinbase & Gemini

An upstart cryptocurrency exchange dubbed ‘LVL’ that seeks to eliminate trading fees announced yesterday that it will be a free-to-use service for the U.S market. This venture is backed by prominent figures, including Anthony Pompliano of Morgan Creek Digital and Bitcoin advocates Willy Woo and Jimmy Song.

Previously, LVL was limited to premium users only but now wants to compete against Gemini and Coinbase. According to the blog post, current exchanges charge exorbitant fees through direct or hidden costs. LVL, which is pronounced ‘level,’ plans to level the playing field with its new model. The blog reads,

“The truth is that exchange fees are robbing people blind. As we stated in Part 1 of our series on fees, fees can be direct or hidden and affect all traders, big or small.”

The LVL Exchange Model

As highlighted earlier, this crypto exchange deviates from the norm by eliminating trading fees within its platform. This means that users can save up to 10% in fees that would have been charged by some of the existing players. LVL users have exposure to three crypto assets, which are Bitcoin, Ethereum, and Litecoin, with trading limits capped at $300,000 per day.

As for the on-ramping process, LVL allows users to invest their paychecks via direct deposit to secure positions in one of the featured cryptocurrencies. They have also partnered with MasterCard to facilitate direct BTC spending in merchant outlets across North America. Users can opt for a standard debit card or a metal one that features three months of LVL’s premium products.

Notably, the LVL digital wallets are multi-sig by design, while the FDIC insures their fiat accounts to protect consumers with the blessings of the powers that be. LVL CEO, Chris Slaughter, emphasized the importance of these fundamentals as a cutting edge,

“We are a super scrappy business contender by nature … Like, we only have seven people, but we have the first Mastercard approval in North America. We’re registered with FinCEN. And not only do we have bank accounts, but they are also full checking accounts.”

LVL’s Income Model

Like any going concern, LVL plans to remain sustainable by making some revenue in other areas. The platform charges a withdrawal fee of 3% compared to a 1-5% range by the dominant exchanges in the U.S. Same-day bank transfers incur a 5% fee, although this is a plus given that regular transactions can take up to 5 days.

LVL also runs a premium service at $9 per month; this subscription features utilities such as top-tier private banking service for BTC, automated trading strategies, and a reduction of 33% of the network fees during withdrawals. Slaughter is optimistic that the platform will surpass Coinbase’s liquidity within January 2021.

“Based on our current number of pro users, and the way we expect liquidity to grow following this announcement, we expect to pass Coinbase’s liquidity within the 2% band in January.”

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Author: Edwin Munyui

Russian Central Bank to Curb Total Digital Assets An ‘Unqualified’ Investor Can Acquire

The Bank of Russia seeks to regulate the total amount of digital assets that individual investors can buy. The central bank has published a draft of regulatory proposals highlighting how they will regulate the nation’s digital assets space.

The Russian central bank is now proposing a bill that will limit the number of digital assets held by non-qualified individual investors annually.

As per the proposal, the Bank of Russia states that non-qualified investors will not be permitted to acquire digital assets above 600,000 rubles or about $7,800. However, qualified investors will not have to adhere to this limit.

According to the regulator, the new limit will help in the recently approved crypto law’s operationalization, specifically on the digital financial assets.

To be deemed as a qualified investor, one must meet 1 of the following five criteria:

  • Hold an economics degree.
  • Own securities totaling more than $74,400
  • A net worth of 6 million rubles (~$74,400)
  • Have over two years of experience working for a financial organization
  • Trade significant amounts of securities regularly.

According to the publication, the curbing will apply to both digital financial assets and various digital rights. The statement reads:

“Individuals representing unqualified investors will have a limit on the amount of digital financial assets for annual purchase at a total of 600 thousand rubles.

The limit for the acquisition of digital rights for unqualified investors who hold both digital financial assets and other digital rights is set at 600 thousand rubles for digital financial assets and 600 thousand rubles for other digital rights.”

The Russian central bank is asking for feedback and opinions about the proposal from the public. Those willing to provide their input have until Oct. 27. The restriction is set to be enforced from Jan.1, 2021.

The Russian central bank also released a distinct proposal touching on how those willing to issue digital assets should register.

Notably, the new restrictions will apply to digital assets, which will be offered when the new digital assets law is enforced. Lawyer Mikhail Uspensky, who spoke to CoinDesk, stated, “Such tokens don’t exist yet, so the document is written for the future. The law will only come into force in January [2021], and cryptocurrencies are not mentioned in it at all.”

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Author: Joseph Kibe

Bitfinex Applies for 3 Subpoenas to Help Recover $880M in Crypto Capital’s Frozen Funds

BitFinex seeks subpoenas from U.S courts to depose U.S based banks after its payment processing firm, Crypto Capital, had its funds frozen in 2019. According to the subpoenas sent to Colorado, Arizona, and Georgia, Tether’s sister company, iFinex, looks to the federal courts to intervene in the release of over $800 million in its funds held in the U.S bank accounts after its payment processing firm accounts were seized by international authorities.

BitFinex Requests Bank Records From U.S Affiliated Banks

Bitfinex aims to obtain a court order that asks the banks that stored funds for Crypto Capital including SunTrust Bank in Georgia, Bank of Colorado, ABT & Trust in Arizona, to release their bank records. This allows BitFinex to prove the company held funds in Crypto Capital’s bank accounts in Poland, Lisbon, London, and across other countries that seized the company’s assets.

The statement from BitFinex reads,

“Crypto Capital subsequently transferred funds between and among various banks, including in Europe and the United States.

In the U.S. alone, Applicant has information that Crypto Capital used accounts held not only at SunTrust, but also Bank of America, Bank of Colorado, Citibank, Enterprise Bank & Trust, HSBC, Stearns Bank, Wells Fargo, TD Bank, and US Bank.”

As the global banks across the world shut its doors for BitFinex given the regulatory requirements regarding crypto, the exchange chose Crypto Capital to process its payments. The exchange claims to have deposited over $800 million in the bank accounts over the years. Now under investigation under criminal charges for AML compliance, the exchange cannot access their funds.

This is the second wave of subpoenas sent out by the exchange after October 2019 filed in Californian courts. The court granted the exchange a testimony from a former TCA Bancorp executive on the Crypto Capital accounts. The exchange was also successful in obtaining a court order in Arizona to check Crypto Capital accounts too.

The Freeze: Crypto Capital

BitFinex’s payment processing bank, Crypto Capital, saw its accounts frozen in 2019 after the President of the company, Ivan Manuel Molina Lee, was charged in Poland for being part of an international money-laundering ring. Ivan is accused of helping drug cartels and mobsters to launder over $360 million on its exchange.

Notwithstanding, Crypto Capital’s, Oz Yosef, is also in trial on conspiracy to commit bank fraud, actual bank fraud and plans to operate an unlicensed money transmitting business.

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Author: Lujan Odera

Russian Economic Ministry To Create Crypto And Blockchain Regulatory Sandboxes In New Bill

The Russian Federal Ministry of Economic Development has proposed new legislation that seeks to legalize crypto as well as blockchain-based initiatives through a special regulatory framework.

The Ministry of Economic Development has already crafted and introduced a draft legislation to the State Duma, Russian Parliament, in a bid to enable the testing of blockchain and crypto initiatives in a specified regulatory sandbox.

The draft law will apply to digital technologies that will be incorporated into eight sectors ranging from financial markets, government services, trade, healthcare, distance learning, transport, manufacturing to construction.

The proposed legislation will be vital in unlocking experimental testing for projects such as unmanned automobiles, use of data without prior consent as well as diagnostics.

As per the local reports, partakers of the regulatory sandbox from the blockchain and crypto sector will enjoy regulatory relief in different fronts such as the minimum capital size, reporting as well as reserve funds. Those using the sandbox will also be exempted from the nation’s foreign exchange law.

According to the Economic Ministry, Russia’s central bank, Bank of Russia, will be solo financial market regulator in the regulatory sandbox. However, it is still not clear if the bank is supportive of the ministry’s initiative.

The latest news comes just hours after a top Bank of Russia official stated that the nation’s virtual assets law is set to ban the issuance as well as circulation of cryptocurrency. As per the official, the Digital Financial Assets bill is set to ban almost all crypto-based aspects apart from holding. The bill has been delayed various times after it was introduced to parliament back in January 2018. Not even an order from President Putin could see the bill sail through.

[Also Read: Russian Govt Looks To Block Censorship-Resistant Tech; IoT, TOR, and Telegram’s TON]

Push For Digital Payments

Meanwhile, Russia’s central bank is urging the citizens as well as merchants to utilize digital payments and cut on the use of cash, Reuters reports. The bank is pushing for the adoption of digital payments in efforts to stem the spread of coronavirus through banknotes.

The central bank is also urging banks to encourage their customers to use cashless means.

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Author: Joseph Kibe

Counos Platform Review: An All-Inclusive Blockchain Financial Services Provider?

Counos Platform Review: An All-Inclusive Blockchain Financial Services Provider?

The Counos Platform is an online blockchain-based P2P platform. It seeks to provide a broad array of financial services designed to meet the sophisticated nature of the Counos User’s needs. As an online platform, it will focus on locating and integrating leading and unique cryptocurrencies from different parts of the world.

In addition to the provision of high security and technical standards, it will also seek to provide platform users with a one-of-a-kind price stabilization policy. This feature will make its services competitive, and a viable alternative to what fiat currencies are offering.

Its blockchain-based platform is decentralized, global, and based on the open-source system. Through this system, it will get to suggest varied payment and financial services to all Counos Users. The only way that it can truly get to achieve this is by combining the Timestamp server and proof-of-work technologies.

A combination of the two technologies can only yield one result—the provision of a top-of-the-line online payment system.

Counos Services

Users relying on this platform to conduct their day-to-day online payments will get to enjoy services such as:

  1. Escrow—It is a secure online transaction service that is based on different cryptocurrencies. Users can utilize it to sell and purchase different goods and services online. The services are supported and overseen by the Counos team.
  2. Exchange—Counos will provide a secure platform to help users participate with different kinds of cryptocurrencies. They can convert them to other cryptocurrencies or to fiat currency and vice versa.
  3. Community—The Counos community will facilitate crypto-based trading. The community is supported by Counos but is not managed by the Counos team. It means that platform users are at liberty to discuss issues and matters pertaining to the platform without having to worry about any kind of interference from management.
  4. Paper Wallet—It is a service specifically designed for use by platform users who would like to enjoy having access to a wallet without ever having to save in on any given network. With this paper wallet, users can get to save a wallet address and corresponding Private Key even without having to connect to a network.
  5. Payment Gateway—The Payment Gateway is a service designed for use by all websites dedicated to online shopping.

Counos users can utilize it to make payments for their online purchases without worrying about having to use a specific cryptocurrency.

The service itself is as secure as users can ever hope for as the wallet details will not get stored anywhere. You get to clear your invoices without worrying about your security.

The Mobile Wallet

If you are like many crypt users, you will want to know that you can access your crypto at the click of a button. The mobile wallet from Counos helps you achieve this with ease.

The wallet is available for both iOS and Android platforms. Besides, its design makes it easy to send and receive crypto within a few taps on your mobile.You also get access to numerous leading cryptocurrencies all from your smartphone.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Bitcoin Exchange Guide News Team

XRP Company, Ripple, Opens a Subsidiary in Brazil to Grow Reach Across South America

Ripple-Opens-a-Subsidiary-in-Brazil-as-It-Seeks-to-Expand-Across-Latin-America

Ripple Opens A Subsidiary In Brazil As It Seeks To Expand Across Latin America

Ripple has announced that it has opened an office in Brazil as the company looks to expand its operations across South America, Cointelegraph reports.

The company behind the third largest crypto as per XRP market cap, plans to announce the development at CIAB Febraban, a famous fintech and banking event that will be held in Sao Paulo, Brazil from June 11 to 13th June.

Luiz Antonio Sacco, who used to work in Warranty Group as a CEO, will head the new office. Sacco joined Ripple in March this year says that Ripple aims at attracting more people to its payment platform RippleNet. Sacco explained that the company intends to reach not only Brazilians but also the entire Latin America. Currently, RippleNet has been adopted by three Brazilian financial based clients namely; Santander Brasil, BeeTech Global and Banco Rendimento, notes Cointelegraph.

“We are excited to expand our ecosystem in the region and bring more financial institutions connected to RippleNet, which will contribute to the greater efficiency of global payments and, above all, a better experience for its customers. and Ripple has differentiated itself in this sector because it offers proven solutions to solve real problems, opening the way to the rest of the South American continent” Said Sacco.

Offering Educational And Training Programs

Ripple does not only look to offer payment network services only in the country. According to Sacco, the company will partner with various universities in Brazil to launch educational and training programs. The firm has already entered into an agreement with the University of São Paulo and Fundação Getúlio Vargas to offer training on different aspects on cryptocurrencies and blockchain. Sacco says that heavy investment in training program will help in promotion of blockchain technology in Brazil and the region in general. The training will also enhance research in the field thereby expanding career opportunities for the youths in the country.

“We believe that educational institutions will play a key role in advancing blockchain applications. USP and FGV are innovative institutions that, in addition to investing in research into new uses for the blockchain, are empowering their students in new technologies that will mean new career opportunities,” explains Sacco.

The CEO noted that the company is already working with more than 15 professors from the two universities who will support research and technical development in various disciplines like law, engineering and business.

RippleNet Gaining Prominence

The company’s payment network, RippleNet, is gaining prominence in the financial sector and by early this year, Ripple announced it had more than 200 customers across the world. The firm announced that five of its clients; JNFX, SendFriend, Transpaygo, FTCS and Euro Exim Bank, are now using XRP for cross-border payments.

The company has been opening offices in various cities around the world to popularize its payment platform. Bitnews Today reports that Ripple has opened a new office in Zurich, Switzerland in efforts to popularize the XRP payment system across Europe.

Will the new office in Brazil help in reaching out to the rest of Latin Americans? Share your thoughts with us in the comments section.

All of Today’s Ripple (XRP) Price Analysis, Chart Forecasts and Industry News

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Author: Joseph Kibe

dClinic ICO (VIC Token) Review: Blockchain Healthcare Vitality Coin

DClinic

dClinic is the world’s first blockchain-based platform that seeks to a holistic healthcare for consumers worldwide and drive positive healthcare outcomes by utilizing the blockchain technology and combining real-world property assets such as clinics and hospital with a transformative digital healthcare platform.

The platform seeks to address the shortcomings of the present healthcare system, based on extensive market studies and research.

The current healthcare systems use a narrow approach when it comes to patients’ healthcare journey and the possible outcomes. The systems often place the healthcare provider at the center of the patient’s care and often limit the patient’s interaction to just a single provider.

Expanding Patient Interaction

The patient’s data is often restricted to a hospital’s registry or a clinical system such as General Practice system, Electronic Medical Record (EMR), or the Patient Registration System (PAS). Unfortunately, only a few people can access such information points.

This system restricts patients’ data, as other relevant healthcare providers cannot provide any input that may improve the healthcare outcome. Therefore, the current healthcare systems hinder the contributions from other relevant agencies such as wellness and vitality service providers, which could lead to a positive healthcare outcome.

Introducing the Blockchain Technology

dClinic embraces a fresh solution that operates on the blockchain technology to enable collaborative efforts that revolve around the patient. The new system integrates various healthcare providers, families, and friends for contributions that could facilitate recovery.

The technology will provide secure storage, retrieval, updating, and exchange of health information among various relevant health entities. This will create a holistic healthcare approach that expedites patient recovery.

dClinic aims to revolutionize the delivery of healthcare to patients in emerging markets through the provision of positive healthcare outcomes at a reduced cost. To realize this vision, the platform has initiated its own facilities, as well as a technology platform in various geo-locations.

It also collaborates with local expert healthcare providers to deliver healthcare services to everyone.

Some of the partners in the approach include Vitality Life Management (VLM), an Indonesia-based company that will purchase, build, or retrofit some hospitals and clinics in Indonesia, powering them with the blockchain healthcare platform. dClinic also engages other healthcare facilities and hospitals in other countries for the same purpose.

New Partnerships

dClinic has secured some new major partnerships including the government and investors in Singapore, Indonesia, India, and the U.S. Besides, it has started buying properties to establish dClinic Wellness and Vitality centers.

Importantly, the dClinic project has achieved its softcap target and will soon list on at least two mainstream exchanges. The platform will be allocating to airdrop and bounty recipients as soon as it gets listed on the exchanges. The Vitality Coin (VIC) will be listed at USD$0.10/VIC.

The dClinic team has many years of experience in the healthcare sector and it’s clear from their numerous worldwide implementations that the patient should be at the center of the care.

The project will focus on making the Shared Care Plan the main consumer and providing a clinician portal that will be used to access consumers’ clinical and non-clinical data. The platform will considerably assist the healthcare sector by giving the Care Team accurate and real-time information that holistically relates to the patient, thereby driving better healthcare outcomes.

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Author: Bitcoin Exchange Guide News Team