After IOTA’s Coordicide Solution, Fund Manager Shift Funds and Vitalik Buterin Has Responses

After IOTA’s Coordicide Solution, Fund Manager Shift Funds and Vitalik Buterin Has Responses

The idea behind blockchain technology is decentralization, a phenomenon that entails the absence of central control in a ledger system. While IOTA has been a blockchain project for some time now, it lacked this single quality, one of three that make any system a true blockchain set up with security, scalability and decentralization.

IOTA has written its name in gold by becoming the first project to have all three characteristics through the launch of Coordicide, “the coordinator killer”. The major reason IOTA wasn’t considered to be decentralized was the presence of a coordinator, a centralized protocol that exists primarily to protect the Tangle from attacks but also controls the transactions of IOTA.

Mati Greenspan, the senior market analyst at the investment and social trading platform, eToro is very bullish on IOTA, tweeting that:

“(I) have shifted some funds towards IOTA. The Jaguar thing is cool + they’re about to implement decentralization.”

His optimism is solid and based on conviction. The platform is making a move towards the establishment of decentralization in its distributed ledger technology.

IOTA has unveiled its blueprint for the removal of Coordinator, with an upgrade known as Coordicide. Secondly, they have also launched the Coordicide website that outline’s the protocol upgrade in detail. IOTA’s Coordinator was designed by the platform’s developers to help secure funds in the network’s infancy. The feature, in particular, halts the occurrence of double spends and ensures that transactions flow through the platform smoothly.

The Coordicide Solution to IOTA’s Decentralization Efforts

Coordicide is a new protocol that is designed to eliminate the centralized Coordinator in order to make the network truly decentralized as “the first permissionless and scalable distributed ledger technology”, the IOTA Foundation said during the launch of the Coordicide Blueprint.

There are nodes in the network that validates Coordinator activity, ensuring that transactions are irreversible and that funds stay secured. The removal of the Coordinator feature has been gathering momentum from the platform’s very outset, and there have been constant updates from the platform’s developers on the same.

Speaking on the development David Sønstebø, the IOTA Foundation co-founder said:

“IOTA was designed to address the limitations of Blockchain with a feeless and scalable solution. That is now becoming a reality. With this major milestone, we are poised to accelerate into our next phase of growth and enterprise adoption in the real world.”

The platform is one of the most hyped platforms in crypto world because it has integrated crypto inspired technology to its use case. It, for instance, inherently unites with IoT using its Tangle mechanism.

Besides, it has done away with miners, which means that its transactions are feeless. Through such innovation, IOTA has managed to eliminate most pain points of blockchain technology, including scaling, high costs of transactions, and extensive use of energy.

A member of the public IOTA project, Markus Gebhardt confirmed that Coordicide will officially make IOTA the first blockchain project to have scalability, security and decentralization as it already has scalability and security but decentralization has been a problem with Coordinator. He added that the introduction of Coordicide will attract institutional investors as the project will become a true Distributed Ledger Technology.

A Redditor explains the process of the transition from a centralized platform to a distributed ledger:

“Coordicide is the transitional process of removing the coordinator. It starts with giving people the software to run their own coordinator, then the coordinators are a decentralized authority. Once the network is properly strong […] then you can have the option to ignore the coordinators in all’; then we might be reaching a true distributed network.”

IOTA Support from Large Firms

The platform has consequently amassed massive support from forward-thinking agencies and firms like Volkswagen, Jaguar Land Rover, and the City of Taipei in Taiwan. With the Jaguar Land Rover partnership, for instance, the vehicles will have an inbuilt ‘smart Wallet” that will support data sharing through IOTA’s Tangle. The Range Rover Velar and F-PACE models already have the technology in them, and their owners can now earn and pay for some services through them. Through the platform’s IoT data sharing capabilities, gadgets connected to the internet will be able to communicate and share data and reap the rewards for it.

IOTA has been the subject of much criticism in crypto world, with questions raised about security vulnerabilities in its build. With the Coordinator in place, also the platform has been unable to claim full decentralization.

Sønstebø has said in the past that a fully decentralized network cannot possibly be built overnight. True to his word, his platform’s long-awaited decentralization goal is finally attainable. The IOTA Research Council has helped design a viable alternative security measure to the Coordinator. The prowess of the platform in real time applications and especially data streaming will now be enhanced for broader use cases something other DLTs have not touched yet.

Ethereum’s Vitalik Buterin Responds to Update

Commenting on the introduction of Coodicide, Ethereum creator Vitalik Buterin said the protocol looks the a clone of Avalanche, a consensus protocol that provides a distributed consensus by using Proof-of-Work or Proof-of-Stake algorithm around a blockchain or cryptocurrency system. This means Coordicide will bring the same level of a distributed system to IOTA as Avalanche would have.

IOTA Market Overview

IOTA is currently the 15th largest cryptocurrency according to Coin Market Cap. With the launch of Coordicide, the potential interest of institutional investors may become a significant generator of adoption that could push the asset up the ladder. Coordicide is launching in the coming months and we can see what happens then.

All of Today’s IOTA Price Analysis, Chart Forecasts and Industry News

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Author: Dalmas N

The Intriguing Irony of Big Banks Slowly Gaining Interest in Bitcoin: Unfolding the Future of Finance

The Intriguing Irony of Big Banks Slowly Gaining Interest in Bitcoin: Unfolding the Future of Finance

The battle lines are being drawn on the battlefield of financial freedom and blockchain technology is the weapon of choice among the participants. The recent scandals of right-wing bloggers being evicted from platforms such as Patreon caused a surge of mainstream interest in the blockchain that promised freedom to transact that current companies could not take away.

This battle might have seemed small at first. Milo Yiannopoulos is one of the more notorious figures who was purged from the site when he opened an account to fund a comeback tour. Carl Benjamin, known better under his Youtube handle Sargon of Akkad, made news all over the tech world when his account was purged.

JP Morgan Chase Joins in the Purging

When an online service purges users, many people can be forgiven for ignoring it. Particularly older people who do not realize how much power those online services have truly taken away. However, what JP Morgan did to several right-wing activists prove that Bitcoin – and cryptocurrency in general – are sorely needed in today’s market.

The vice-president of the National Centre for Public Policy Research, David Almasi, confronted this very issue at shareholders of JP Morgan Chase in the most extravagant way possible. Almasi delivered a copy of Orwell’s classic book “1984” to the CEO of JP Morgan Chase, Jamie Dimon. He did not openly say anything to that effect, but rather suggested that Dimon should reread the book to “brush up” on the specter of big brother.

HE must have left the meeting feeling that the symbolic gesture had little to no effect on the CEO as Dimon barely stopped short of promising a full offensive into bank members who were involved in “wrong-think”.

Bitcoin as an Answer to Censorship

Now, this doesn’t mean that Bitcoin itself can’t be used to censor people either. After all, Coinbase kicked Milo Yiannopoulos off its platform very quickly. In fact, it took only three minutes from the divisive far-right figure to be kicked off the platform that controls more Bitcoin than any other exchange bar Binance.

This is nothing new for Coinbase, who did the same to Gab. Gab is a social media website that promises no censorship on its platform and is open to everyone. Purging Gab, while at the same time hiring hackers who had worked for dictatorial regimes to help with the prosecution of Saudi journalists has been a bitter pill to swallow for many of Coinbase’s clients. These clients have been leaving in droves following the complicated series of events that have left a bitter pill in the mouths of formerly happy clients.

However, despite Coinbase’s actions, that does not mean Gab or Milo are locked out of Bitcoin. The beauty of Bitcoin is that even if every single crypto-exchange and online payment platform (Paypal has been notorious for similar practices) were lockout Milo… he would still be able to use Bitcoin.

The fear is that now that banks have gotten in on the action, particularly one as powerful and influential as JP Morgan Chase, others will soon follow suit. The beauty of Bitcoin is that even if all banks decide to follow every crypto exchange and every online payment platform – Bitcoin will still be an option for people like Milo Yiannopoulos.

There are people who have been living off of Bitcoin for the better part of a decade. There are sites where you can buy food, pay your rent and do almost anything so long as you have enough coin. This is only becoming easier by the day as more and more businesses are embracing both Bitcoin specifically and cryptocurrency in general.

While JP Morgan Chase might be proclaiming innocence, and saying that the pro-Trump activists were removed due to KYC, and AML concerns, the answer is much simpler than that. Their own help-desk staff was just as perplexed at the turn of events as the former clients of the bank.

It is time for Bitcoin to shine, not only as a currency or a store of wealth but as a bastion of the freedom upon which the early internet was founded. Bitcoin was created at a time when the freedoms once taken so lightly began to turn people’s privacy into a commodity. Now it is here to fight another fight.

This is the fight for freedom of speech and one thing is for sure – when freedom of speech is involved, the issue can become greater than anything else, particularly in the US. If Bitcoin wasn’t already booming, it would now.

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Author: Ali Raza

A List of the States in the USA with the Highest Number of Bitcoin ATMs

A List of the States in the USA with the Highest Number of Bitcoin ATMs

The rate at which Bitcoin ATMs are popping up everywhere in the US and many other countries leaves no doubt about bitcoin’s growing adoption and usage across the globe.

Currently, there are in excess of 4,700 units located all over the world. Of course, the bulk of them are here in the States, concentrated in a few states.

This article is meant to shine a light on the states with the highest number of bitcoin ATMs. Please note that this information is accurate as of the time this article was published.

Illinois Leads the Charge with 360 Cryptocurrency ATMs

The state of Illinois leads the pack with 360 Bitcoin ATMs. 237 of these machines are located in the Greater Chicago area alone.

The rest are spread across the state in counties and cities like Springfield, Naperville, Evanston and Peoria. Illinois is a total hotbed for bitcoin ATMs, as it the policies there are friendly to crypto and bitcoin companies.

Boardwalk’s New Jersey

Located to the south of New York and home to Atlantic City, New Jersey comes second with 177 bitcoin ATMs. These machines make it possible to exchange cash for bitcoin and vice versa.

Of course, this implies that there’s a huge market for this in the state. One of the reasons these ATMs have flourished in the state is the favorable business climate backed by crypto-friendly policies.

It appears that the bulk of bitcoin ATMs are concentrated in Newark. One would think you’d find them in Atlantic City though. But, the city has just one bitcoin ATM.

This means that the famed Atlantic City has less machines than smaller and less popular places like Freehold and Deptford Township. Of course, this means that more machines can be set up in places without one if the companies are willing to do so.

Big Apple’s New York City

Surprisingly number 3 on the list, New York’s most populous city trails behind NJ with 125 machines. This means that NJ has 55 more bitcoin ATMs than NYC. You’d think the city, because of its popularity and thriving tech scene, would lead the pack. But that’s not the case.

Anyway, all 125 bitcoin ATMs are located in only NYC. There’s just two more in the surrounding towns and cities within the state –more specifically one each in Sunnyside and Rosedale.

However, upon closer inspection, one can see why NYC doesn’t have as many Bitcoin ATMs. The city has passed some unfriendly polices and guidelines that do not favor crypto and bitcoin related activities.

As a result, bitcoin ATM companies have to jump through so many hoops just to stay afloat and survive in the city.

Lone Star Texas

This state with abundant sunshine trails NYC and is on the list of cities with the most bitcoin ATMs. The economy and business climate there is very crypto friendly. This is why we’re seeing a growing number of bitcoin ATMs, particularly in Houston, Dallas and Austin.

There are about 24 each in those three cities. And San Antonio has about 12 bitcoin ATMs, while other cities like Rockwall, Fort Worth, Amarillo and Corpus Christi have at least one each.

What this means is that the big cities serve as the major bitcoin ATM hubs, while the smaller ones get a few machines each. Because of the state’s favorable policies, we’re likely to see considerable growth in the number of bitcoin ATMs in the years to come.

Sunny Florida

Home to the popular cities of Miami, Fort Lauderdale, Orlando, Tampa and Jacksonville, Florida has become a hotbed for bitcoin ATMs and crypto related activities as a whole.

There are hundreds of these machines all over Florida, with the bulk found in Miami. Popular cities such as Orlando, Tampa and Jacksonville have tens of these machines installed across the multiple cities.

Smaller places like West Palm Beach, Fort Lauderdale, Miami Beach and Fort Myers have about 5 of these machines each.

The Golden State of California

In California, the main places you’ll find bitcoin ATMs are Los Angeles, Sacramento, San Diego and of course, San Francisco. These are the main hubs for all blockchain, crypto and bitcoin-related activities in the state. The good news is, even though all these major cities have many of these machines, the other 36 cities have a minimum of one each. Considering California’s size, this is a huge feat for these bitcoin ATM companies.


The hub of bitcoin ATMs in the state in Atlanta. The city has the bulk of the machines. Other smaller cities, suburbs and smaller areas like Savannah, Trenton, Augusta, Athens and Columbus has 1 or more of these machines available.

While this looks promising particularly for the economy down south, the truth is only time will tell if the innovative technology will thrive and grow to its fullest potential here.

Automaker’s Michigan

The bulk of Michigan’s 127 bitcoin ATMs are concentrated in Detroit. The city alone is home to 120 of these machines, while the other 7 machines are Lincoln Park, Lake Orion and Grand Rapids.

With Detroit currently coming out of bankruptcy and the economy struggling to find its feet, it might be a while before we see bitcoin ATMs be in full use. That said, we can only keep our fingers crossed.

In the meantime, if you live in Detroit, Michigan and need to exchange bitcoin for cash and vice versa, there are a ton of bitcoin ATMs that you can use.


This state is home to almost 130 bitcoin ATMs, with the bulk of them concentrated on its biggest city, Philadelphia.

“Philly” is currently home to 96 of these machines. Other cities such as Pittsburgh has 11, Harrisburg has 7 and Allentown has just 5. The remaining 10 machines are distributed among 10 other cities in the state.

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Author: Bitcoin Exchange Guide News Team

Bitfinex Temporarily Shuts Down Deposits and Withdrawals, Says Exchange Funds are Safe

Bitfinex Temporarily Shuts Down Deposits and Withdrawals, Says Exchange Funds are Safe

The crypto exchange Bitfinex has recently announced that its deposit and withdrawals were suspended. The company used its Twitter profile in order to make the announcement.

According to the exchange’s tweet, this was happened due to some outage on one of the company’s network providers. Therefore, they had to shut down the services temporarily.

They also affirmed that all funds remained in cold storage and that the situation should be restored in around three to four hours. This was pretty much what happened. Around three hours after the announcement, the services were live again.

During the downtime, the CTO of the company, Paolo Ardoino, has posted several links to the hot wallets of the company. He made it in order to show to the community that their funds were safe and that nothing was happening.

Downtime Caused Worries Because Of Recent Controversy

One of the reasons why the downtime was so worrisome for the community was because of the recent controversy that Bitfinex and its sister company Tether faced. The New York Attorney General (NYAG) Letitia James has accused the two companies after Bitfinex lost $850 million USD and Tether used the funds of its stablecoin in order to make up for the money that was lost.

This created a major problem for the companies, which are now facing the NYAG in court. Bitfinex never actually revealed the loss to its investors and used the money of the stablecoin, which was supposed to be backed 1-to-1 with USD. It was a double mistake.

The Community Reacted

The price of Tether has somehow remained stable despite all the trouble, but it is fair to say that the confidence of the investors has been badly shaken by what happened, which is why people were so suspicious today when the downtime happened.

A user called @CryptoFraggle, for instance, has shown a Simpsons gif affirmed that “the end is near”, something that many investors and traders were probably thinking when the company affirmed that the downtime was happening.

Other people, such as @Naji_GK, only affirmed: “Let’s panic”. Others affirmed that the case was very similar to Cryptopia when the exchange was hacked.

Fortunately, most of the users preaching doom were wrong. There was no reason to be so afraid, after all, since the funds were eventually released for withdrawals. It looks like, at least today, people will not have to worry anymore.

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Author: Gabriel M

Binance Charity Foundation Signs MoU With Ugandan NGO Safe Future for Local Education Benefits

Binance Charity Foundation Signs MoU With Ugandan NGO Safe Future for Local Education Benefits

The charity branch of the most important crypto exchange in the world, Binance Charity Foundation, has recently decided to sign a Memorandum of Understanding (MoU) with a non-governmental organization (NGO) based in Uganda named Safe Future. The NGO is focused on improving the local education in the country.

This new partnership was originally announced yesterday on the Binance blog after the document was signed. The partnership will be a part of the Binance for Children Special Impact Education Project Uganda.

By uniting with local companies, the idea of this project is that the funds raised by the crypto exchange will be used in order to buy and install several upgrades to the schools such as sanitary pads, LED screens, solar panels, school supplies and food to be used in launch and breakfast for the students.

The money to buy the goods will be the responsibility of the exchange and the local NGO will oversee how the money will actually be spent locally for the schools that need it the most.

Safe Future’s CEO Mula Anthony has affirmed that over 100,000 students will have their lives improved by being a part of this project, which is set to be made in at least 160 schools of the country.

According to Anthony, the project is already underway at the moment. He has spoken about it on social media and affirmed that the people from the NGO have already started the installation of lightning kits on two schools based on the region of Kampala so far.

Soon, it is expected that the project will move forward and all the 160 schools will eventually receive the material, so the signing of the MoU was a huge first step in order to turn this into a reality.

About The Binance Charity Foundation

The Binance Charity Foundation is a charity organization that was created by Changpeng Zhao, the CEO of Binance, last year. The goal is to use the money from donors in order to help especially children in poor countries.

In the future, the main goal is to be able to help at least one million students in African countries such as Uganda, Kenya, Rwanda and Ethiopia.

Before now, the foundation was already engaged in the Launch for Children project. This project had the goal of providing breakfast and lunch for kids at school in the Kampala region. At the time of this report, 10 schools from Kampala and Jinja are already participating in the project.

During April, the foundation also opened a channel that would be used in order to donate money to the reconstruction of the Notre Dame cathedral. As you may have seen on social media, the famous cathedral was severely burned after a fire started there and the fireman had difficulties to stop it quickly.

The program was called Rebuild Notre Dame and it received money via crypto donations with Bitcoin, Ethereum and Binance Coin.

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Author: Gabriel M

FCA Cautions Against Sketchy CFDPremium Scam to United Kingdom Investors

FCA Cautions Against Sketchy CFDPremium Scam to United Kingdom Investors

The U. K.’s Financial Conduct Authority (FCA), one of the most important financial regulators in the country, has decided to warn the local investors against a new company called CFDPremium, which is targeting U. K.-based investors with offshore investments, including crypto.

According to the Britain regulator, this is a part of the ongoing effort in order to warn the public about the scams which are so common in the market.

CFDPremium is not a company based in the United Kingdom. It offers mostly crypto services such as Bitcoin and Litecoin investments, and also offshore investments for users. The warning was sent out because the company was deemed as fake by the regulators. According to them, CFDPremium is not authorized to offer its business in the country or to local investors.

Therefore, the company would represent a high risk for investors that could be speculative and make them lose their investments if they decided to give it a chance.

This is not the first company to try to offer CFDs to customers without being properly regulated. This kind of investment, unlike crypto, cannot be offered by companies which are not properly regulated by the countries in which they are offering their products.

For instance, the European Securities and Markets Authority (ESMA) has prohibited these companies from offering their products in all European countries without communicating with the authorities first and being completely compliant with all the local laws.

Another concern that the FCA currently has is that companies will use their overseas brands in order to sell products that can be fake or that are unregulated and will offer unexpected dangers for investors. Products like this can create several risks to the users and consumers, so they should be avoided.

In other occasions, the FCA has warned the local investors against any kind of “get rich quick” scheme such as these ones, because most of the time they are scams poorly disguised as real investments which will only take the money off the investors and vanish, which they can do because they work outside of the country and are, therefore, more likely to evade the law.

Another important problem is that most people see cryptos as shortcuts for getting quick money, which actually helps when some company uses them either as a way to escape sanctions or as a buzzword.

Finally, it was affirmed by the FCA that people should be aware that some companies affirm that they are regulated under the local law but they are not. In these cases, you should always check with the authorities before you invest.

Crypto Scams Are Most Profitable Than Most Altcoins

A new study made by Longhash showed that two popular crypto scams, Onecoin and Bitconnect, were actually more profitable than several altcoins. When comparing the market cap of these scams with tokens, both scams were featured in the top 10, using information from CoinMarketCap.

This is a certainly very worrisome scenario that shows just how important it is to stop these fake crypto offerings from reaching incautious investors.

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Author: Gabriel M

China Investigates Illegal Bitcoin Mining Farms at Hydropwer Stations In Sichuan Province

China Investigates Illegal Bitcoin Mining Farms at Hydropwer Stations In Sichuan Province
  • The Chinese government is investigating crypto miners in the Sichuan province
  • Sichuan is one of the most important crypto mining regions in the world

Authorities in China are investigating allegedly illegal Bitcoin (BTC) mining farms that have apparently been built without the required permissions in Sichuan province. This is according to the local media agency Sina in a report on May 30.

Illegal Bitcoin Miners Investigated in China

According to a recent report released by Sina, there have been reportedly constructed 30,000 Bitcoin mining machines without approval from the government. The companies behind the constructions of these farms are currently being investigated.

In general, the alleged mining farms have been installed close to the Dadu river, which hosts the world’s biggest embankment dam. Although this dam is under construction, the region has one of the cheapest electricity prices for mining the most popular digital asset.

China and the Sichuan province specifically have been receiving large companies and investors that wanted to mine virtual currencies. Sina claims that 70% of the world’s Bitcoin are mined in China and 70% of the Chinese mining activities are focused in Sichuan province due to the electricity capabilities related to the Dady River.

There were some reports in the last months in which China’s National Development and Reform Commission, a local agency in charge of macro policies, revealed that authorities are considering banning crypto mining activities in the country.

Crypto miners need to have cheap electricity that would allow them to reduce the costs of powering energy-consuming miners and cold temperatures for miners to run more efficiently. Bitcoin mining activities tend to be profitable, but there are periods of time in which some miners have to leave the market due to an adverse market.

Bitcoin’s hash rate is currently close to its all-time high registered in September 2018 when it was over 60 million TH/s. Which is going to be the effect of this investigation on Bitcoin’s hash rate and its network is yet to be seen.

[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: Carl T

XRP Whale Alert: Ripple Exchange Wallet Trades Over 9 Billion Tokens

XRP Whale Alert: Ripple Exchange Wallet Trades Over 9 Billion Tokens

The crypto market is so mesmerized by rise in the price of Bitcoin (BTC) that some people are not paying attention in some other important factors which can also be very important for the market. For instance, today several large transactions were made using Ripple’s XRP.

These transactions were spotted by the ever attentious Whale Alert profile. According to the Twitter profile, 14 XRP transfers were made from the official Ripple wallet to several unknown wallets, which shows how active Ripple is right now.

Out of the 14 transactions, only two of them were sent out to other Ripple wallets and 12 of them were sent to unknown wallets. The profile also highlighted that some of the addresses were the same that the company sent some funds before.

A total of over 9 billion XRP tokens (almost 4 billion USD) was sent out in these transactions, which clearly shows that the amount of tokens being moved around is currentyl far from negligible. This amount of money includes the fees which were paid. Some of them were over 1,000 XRP tokens, meaning that these were, in fact, very high fees, normal with such large transactions.

Some wallets that received the tokens were reported to be activated just some time before they received the funds from the other wallets, meaning that some of them were actually new wallets which seemed to be created with the specific purpose of receiving these funds.

What Does This Mean For Ripple?

As soon as the movement was spotted, many people started to ask what was going on. These are consderably large numbers, so it picked the interest of many investors using social media during the day of the transactions.

Some people have considered that Ripple may be dumping these funds. This theory is based on the fact that the prices of XRP tokens have not been raised a lot during the month, as they are somewhat stagnated while the price of other assets such as Bitcoin has gone up with time.

Other people have complained that it is “stupid” to say that Ripple is dumping tokens because it is a big organization and it is expected that they will eventually sent out tokens to investors who are interested in them.

The truth is that nobody is sure, so we have to wait for the next moves made by the company in order to actually be able to determine what is going to happen in the future.

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Author: Gabriel M

Wilshire Phoenix Proposes Exchange Traded Product (ETP) to the SEC to Hedge Bitcoin with US T-bills

Wilshire Phoenix Proposes Exchange Traded Product (ETP) to the SEC to Hedge Bitcoin with US T-bills

The SEC has received multiple applications for Exchange Traded Product (ETF) to be listed on the New York Stock Exchange (NYSE). However, it has been delaying these decisions since at least the middle of last year for many of the companies that have tried to gain the listings.

This is despite the Commissioner of the SEC coming out in support of cryptocurrency and Bitcoin in particular during a recent keynote address at the Consensus Summit 2019. This has lead to many asset managers trying to find new and innovative ways to bring cryptocurrency to retail investors via physical exchanges such as the NYSE.

Upstart looking to T-Bill hedging as a solution

This is where Whilshire-Phoenix comes in. A small, some would say upstart, asset management firm thinks it has found the secret to getting SEC approval and it revolves around minimizing risk by bundling Bitcoin with various other instruments.

These are notably Treasury Bills and the product uses a proprietary formula to be able to entice larger investors who are looking to dip their toes into the Bitcoin craze. However, these same investors do not want to deal with the inherent instability that permeates the crypto market.

The fund, whose full name is The Wilshire Phoenix United States Bitcoin and Treasury Investment Trust, filed an S-1 with the SEC in January already. An amended proposal as submitted on the 21st of May and it proposed this new ETP model. The new model would group Treasury bills (T-bills) with Bitcoin. Coincidentally, NYSE Arca filed with the SEC to appeal for a rule change that would allow them to list ETPs on their exchange.

IT is a sign of the times that various companies have started looking into releasing Bitcoin-related products such as ETPs and ETFs (Exchange Traded Funds).

VanEck and Bitwise have both applied with little success, as their proposals have been stalled time and time again. The reasons given for the stalling tactics was for the SEC to garner public comment on both the stability and volatility concerns regarding investing into Bitcoin.

Finer details emerge

The ETP would be backed by Coinbase’s Custody program that is insured up to 200 million dollars. It would combine this with short term treasuries and cash equivalents that would be held by the UMB Financial Corporation.

The success or failure of the application hinges on the hedging of Bitcoin (high volatility) versus T-bills (low volatility). The fund’s formulas dictate how much is invested at any given period.

During periods of high volatility, a smaller portion of the fund would be invested into Bitcoin, whereas a much larger portion would be added in periods of low volatility. The beginning of each month would see a reallocation of funds based on the data gathered the previous month – thus allowing for some stability in a market where it has not been seen… ever.

The situation as it stands currently is that the SEC has 45 days to give an answer to Wilshire-Phoenix. An approval from the SEC would see the retail shares traded on the New York Stock Exchange Arca, giving a much wider (and richer) audience to cryptocurrency.

The fine print is interesting as well. The SEC has never approved a 19(b)-4 crypto mutual fund and that is in part due to the lack of control over the NAV (Native Asset Value) of cryptocurrency based funds. However, when looking at combined holdings, particularly when it comes to being grouped with T-bills.

The company believes that the stumbling block in the past has been the ever-present volatility factor and the company likewise believes that it has managed to solve that problem.

Many in the financial and crypto world think that the SEC would be loath to give any cryptocurrency product an approval, no matter how small of a percentage it would be. Wilshire-Phoenix spokespeople couldn’t comment on this as they are not allowed to speculate at this point of the proceedings but they do assure that they are in constant contact with the SEC.

The method they are using, however, isn’t just applicable to crypto. The reorganization of assets on a monthly basis and the formulas used to calculate the reorganization are currently waiting on a patent. This method allows a much greater control over the NAV of the product, as well as shifting the cost of rebalancing value from the customers to the fund itself.

This is done by using the interest gathered by the T-bills to pay for a portion of the rebalancing. If successful with Bitcoin, the fund will be looking to apply this method to other asset classes very soon.

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Author: Ali Raza

Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook

Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook

The Nexo team released an update today on the future of their project while also clarifying misconceptions about the rapidly-growing lending platform.

Nexo claims their key business model “is unchanged” but that the company is:

“actively exploring new avenues to maximize token utility and investor value.” The company also claims their ultimate goal is to become “a multi-billion dollar financial institution.”

While few people had heard about Nexo several months ago, the crypto lending platform has become a leader in the space. In fact, the company claims to be “the market leader in the crypto lending space”. Their goal is to solidify that position moving forward while continuing to expand.

Nexo also provided an update on its Nexo Card, which will launch in Europe first before expanding to clients in other countries worldwide. The company claims any delays in launching the Nexo Card will be caused by third parties – not Nexo itself.

Nexo also clarified its deployment of different collateral requirements and a new lower loan minimum of $100. The company claims these programs “have been IT-ready for months” but the deployment of the programs has been on hold while Nexo secures additional funding.

“This has been done to meet the enormous loan demand that will inevitably result from introducing them,” adds Nexo.

The next Nexo update, meanwhile, is scheduled to be released in June for iOS and Android. Also in June, Nexo plans to announce the ex-dividend date for the next Nexo Dividend.

One final bit of news from the blog post is that TRON will be onboarded as a new collateral option as part of the June update.

“Nexo Continues to Be the Undisputed Market Leader in the Crypto Lending Space”

One of the most important points of this latest blog post is that Nexo see itself as the undisputed market leader in the crypto lending industry.

The company plans to grow that reputation moving forward:

“while delivering new features, functionalities and new opportunities to further enhance the Nexo product offering and to maximize value for the NEXO token holders.”

Nexo Clarifies Misconceptions and “FUD” About Project

Another important point of the blog post was to clarify misconceptions about Nexo and the NEXO token.

“For too long have we ignored the malicious spreading of misinformation about Nexo and the NEXO token,” explains the Nexo team in the blog post.

The blog post goes on to describe the NEXO token as

“an income-generating digital asset with significant growth potential.” However, they also caution that FUD has “affected both the token price and the Nexo community.”

Some of the specific points they wish to clarify about Nexo and the NEXO token include:

Key Points of the Nexo Terms Have Not Been Changed, Although Smaller Points Have

Some in the community believe that the NEXO token terms have been quietly adjusted multiple times. Nexo doesn’t deny that the terms have changed, but they maintain that “essential features” like the 30% profit-sharing and the Nexo Dividends program have not bee changed.

However, Nexo didn’t deny adjusting certain terms over the last few months:

“While there are no major deviations from the initially set terms, changes are, of course, sometimes needed in order to adapt to new circumstances and changing business and regulatory realities. An example would be the introduction of the Loyalty Dividend which was not included in the initial Token Terms but was added later on — a move hugely appreciated by the community.”

The company claims that any major changes to the terms and conditions will only move forward with community review.

The Nexo Card Has Been Delayed, But for Reasons Outside of Nexo’s Control

Certain members of the community have also been spreading FUD about the launch of the Nexo Card. The card has been delayed, although Nexo claims the delays are the result of things “that unfortunately Nexo has no control over.”

Nexo claims Visa and MasterCard have “very strict policies” on who can get approved for a card program, and that both companies are very conservative over crypto-related businesses. The companies also have detailed application processes required for each country – there’s no pre-set international card program available.

Nexo claims they “did get approvals” but were also subject to “additional due diligence processes”, and both Visa and MasterCard required the company to amend certain terms.

It’s still unclear when the Nexo Card will launch. Here’s all that Nexo has to say about the launch date:

“The Nexo Card will first become available in Europe with more parts of the world following suit.”

Nexo Continues Dropping Minimum Loan Requirements

When Nexo launched its lending service last year, there was a minimum loan requirement of $5,000. That limit was gradually dropped to $500.

Next, the goal is to drop the minimum loan requirement to just $100. However, Nexo claims there are two main reasons why they have not yet lowered the minimum to $100:

  • “Nexo does not charge its users any bank transfer fees and we would like to keep it that way”
  • “Lowering the loan minimum to $100 or aggressively adding more collateral options would further increase the demand side which we might not be yet ready to back with enough financing.”

In other words, Nexo doesn’t want to compromise the user experience by lowering the loan limit to $100. Nexo also claims the reasons above are why they have delayed the launch of their affiliate program.

TRON Will Be Onboarded in June

Earlier this year, Nexo launched a community poll to determine which cryptocurrency should be onboarded to the platform next.

Nexo claims the decision was “unambiguous”, and that TRON would be the cryptocurrency onboarded in June.

What’s Next for Nexo?

June will be a big month for the Nexo team. The company is going to announce the ex-dividend date for the next Nexo Dividend in June. Nexo is also onboarding TRON and updating its mobile apps in June.

It’s unclear when the Nexo Card will launch, although it seems possible the card will launch in Europe before the end of the year.

The Nexo team clearly believes the future is bright not just for itself – but for crypto in general. They claim we’re in the middle of ‘Crypto Spring’ after a prolonged ‘Crypto Winter’:

“With the tokenization of the world, Nexo is in a perfect position with its leading automated lending infrastructure to capitalize on the widespread adoption that established behemoths of the financial world such as JP Morgan, Fidelity, the Yale Endowment fund and Facebook will ensure. The total addressable market for Nexo’s products thus rises to the trillions and we are happy to have you in for the ride!”

Nexo (NEXO) has jumped 46% over the past 24 hours and now sits in the top 100 cryptocurrencies by market cap (currently holding the #100 position).

However, NEXO is still trading significantly lower than its all time high price of $0.39 from May 2018, currently trading at a price of around $0.11.

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Author: Andrew T