Crypto Exchanges Continue to List Hundreds of Dead Coins – Report

Per a recent report by CoinCodeCap more than 2000 crypto projects and 640 currencies have not published a single line of code in 2019, thus, making them dead projects or dead cryptocurrencies.
CREX24 and IDEX Top the List
The report mentions that exchanges are not carrying out due diligence and exposing customers to projects which will not be beneficial in the long run. The study analyzes more than 300 exchanges and found that 7 exchanges have listed over 1000 dead cryptocurrencies. Crypto exchange CREX24 topped the list with 179 dead crypto projects. One of the leading exchanges IDEX has also listed 158 dead projects of its total of 763 cryptos listed. 
Source- CoinCodeCap
Another exchange Cryptobridge has listed 141 dead coins out of 334 total listed cryptocurrencies. Also, an exchange Token.store has 15 dead coins out of 36 cryptocurrencies listed on the platform. HitBTC exchange has a whopping 101 dead coins of 515 coins listed on the platform. 
Source- CoinCodeCap
Interestingly, leading exchanges Binance, Bitfinex and Poloniex list only a few dead coins. The numbers stand at 11, 7 and 7 respectively. This implies that the leading exchanges do their fair share of due diligence when listing coins. Furthermore, the report gave a clean chit to Coinbase Pro which had no dead coins listed 
Source- CoinCodeCap
Is Cryptosphere Becoming A Collection of Dead Coins?
A recent report by Longhash that how the crypto ecosystem is becoming replete with coins that have little to no business value. Furthermore, the report alleges that over 1000 coins are dead. The reasons listed for the same are scam projects. The life of such projects has been limited to a period of 12-18 months.
Source- Longhash
Exchanges Accused of Wash Trading
Be it dead coin listing or allegations of wash trading time and again crypto exchanges have been subjected to several controversies. A recent report by Blockchain Transparency Institute revealed that OKEx and Bibox led exchanges with the highest percentage of wash trading. Interestingly, the fake volume of these exchanges exceeded 75%. However, their real volumes are high enough to get them a spot in the Top 20- consistently.
It will be interesting to note how these exchanges will respond to the report findings. Let us know what you think in the comments below!
 
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Source: CoinGape

Binance Futures On All Time High, Record $700 MM Trade Volume in 24 hrs

Leading cryptocurrency Exchange, Binance’s recently launched BTCUSDT Futures recorded a volume of $700 M on the 15th of October. 
Binance Futures Records 3rd Highest Volume In Crypto Futures
Source- Skew Markets
Binance Futures further recorded its first 24 hr 100K BTC day on the 15th.  On the 11th of October, Binance Futures recorded a new high trading volume- 16k BTC in an hour. Then, the volume recorded was the 4th highest in the crypto futures industry. 
Source- Twitter
Interestingly, in a span of 5 days, Binance Futures managed to climb up the 3rd highest position. A tweet by AG Binance mentioned how Binance Futures are on a bull run and have already reached No 2 spot in terms of 24-hour volume. 
Source: Twitter
Launched on the 2nd of September, Binance Futures have performed exceptionally well. Recently, the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC. Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
Source- Twitter
While Binance Futures climb at a fast pace, leading cryptocurrency derivatives exchange BitMEX only traded futures worth $948 Million, recording the lowest in months. 
Source- Skew Markets
 
First BNB ETP Launched 
In another development, Binance and Amun AG – global leader in the issuance of cryptocurrency Exchange-Traded Products (ETP), have partnered together to launch a BNB ETP on the regulated segment of the SIX Swiss Exchange.
The product is designed to make the top- 10 cryptos accessible to audiences. Interestingly, this is the worlds’ first crypto-based product that can be purchased using a brokerage or a bank. The product has been issued on the Amun Onyx Platform. As a matter of fact, the new BNB ETP took about a month’s work to be created. Per the announcement, each new product will track 1.09890110 BNB and will trade at a starting price of approximately $20 – depending on market conditions.
When will Binance Futures hit the 2nd spot? Let us know your views in the comments below!
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Source: CoinGape

Tone Vays Calls Litecoin[LTC] A Scam; Litecoin Creator Defends it With a Coke-Pepsi Analogy

Leading derivatives trader and crypto analyst Tone Vays, in a recent tweet, alleged that cryptocurrency Litecoin[LTC] is a scam. He took a sarcastic dig at Litecoin supporters and posted a screenshot dated back to 2013, explaining why Litecoin is a scam. 
Litecoin Brings “Nothing New to The Table”
Source-Twitter
Tone Vays’ posted explanation brings bad light to Litecoin, mentioning that Litecoin, unlike Bitcoin, doesn’t bring anything new to the table. The post mentions that Bitcoin is a technological innovation, whereas other altcoins like Litecoin are mere clones that retain the “pump and dump nature” of Bitcoin.
Source- Twitter
Furthermore, the post talks about the change in Litecoin mining protocol- a shift from SHA256d to scrypt. The latter is far more prone to attacks than the former and performs poorly on the consumer hardware. Secondly, the faster target block time was considered an issue as faster blocks bloat the blockchain more. 
Charlie Lee Responds Using Coke-Pepsi Analogy
 Interestingly, Charlie Lee, founder of the Litecoin Foundation responded and said that all such assumptions are based on the fact that Litecoin is not a viable currency. Furthermore, transactions worth $500B have been carried out on the platform in the past 8 years. He then went on to give an interesting analogy – if someone drank Pepsi and thought that Coke was inferior to Pepsi it didn’t make Pepsi a scam. His implication was that even if people thought that Bitcoin was superior to Litecoin, Litecoin is not a scam. 
Source- Twitter
Tracking the Twitter
This comment led to a tweetstorm and garnered interesting responses from crypto twitter. A twitter user with handle “Jack of Hearts” said that comparing the transaction volume didn’t make any sense. However, he was convinced of the Coke- Pepsi analogy. 
Source- Twitter
Another user with twitter handle “BrainDeadXrpFan” said that he thought Vays was a scam. He further alleged that the latter mislead people into “not” buying anything while his own motive is to multiply his investments. 
Source- Twitter
Twitter user Tanzeem said that Vays is a scammer as he charges 0.3BTC/ hour and still expects Bitcoin to go under $3000. 
Source- Twitter
Talks about Litecoin just banking on Bitcoin’s market shares also surfaced. To which Lee replied that Litecoin helped Bitcoin immensely whereas Pepsi in no manner helps coke. 
Source- Twitter
 
Another crypto user alleged that Lee sold his project for fiat thus defeating the very purpose of Bitcoin. Lee in a sarcastic tweet then answered that it was his money and the decisions regarding it are solely his. 
Source- Twitter
Do you think that Litecoin has made valuable contributions to the cryptosphere? Share your opinion with us in the comments below!
The post Tone Vays Calls Litecoin[LTC] A Scam; Litecoin Creator Defends it With a Coke-Pepsi Analogy appeared first on Coingape.
Source: CoinGape

Binance Launches World’s First BNB ETP With Amun AG

Per a recent announcement by Binance’s official Twitter handle, Binance and Amun AG  world’s leader in the issuance of cryptocurrency Exchange-Traded Products (ETP) have partnered together to launch a BNB ETP on the regulated segment of the SIX Swiss Exchange.
AMUN BNB (ABNB) ETP Trading Begins Today 
Source- Twitter
 
The product is designed to make the top- 10 cryptos accessible to audiences still not aware of the crypto. Interestingly, this is the worlds’ first crypto-based product that can be purchased using a brokerage or a bank. 
The product has been issued on the Amun Onyx Platform. As a matter of fact, the new BNB ETP took about a month’s work to be created. Per the announcement, each new product will track 1.09890110 BNB and will trade at a starting price of approximately $20 – depending on market conditions.
Binance CEO, Changpeng Zhao said the product would help open up digital assets to traditional investors. He said, 
It will give traders exposure to a new and regulated asset class with a unique dimension to utility tokens…through a traditional financial infrastructure.”
From the Managing Director’s Desk 
Laurent Kassis, Amun’s  Managing Director last week, said that 
“Even with the token burns likely to restrict supply and dampen volatility, the remaining 100M BNB tokens will provide “ample space for a Binance ETP to exist for a very long time.”
She further said that BNB has gained nearly 200% since the first quarter of 2019. Moreover, it is trading “well within the arbitrage boundary of normal volatility behaviors”. She further said that it will attract new traders as it provides them exposure to crypto through a traditional product and will also bring huge benefits to Binance users. 
What is an Exchange- Traded Product? 
An Exchange Traded Product is a financial security that derives its price from other underlying assets. It can be traded on the traditional stock exchange like any other stock or commodity. Intra-day orders of the ETPs can be also be placed. Moreover, Exchange Traded Products can not only be used to place intraday orders but also to develop other financial products on it.
BNB ETP Becomes the 8th Crypto ETP to be Listed on SIX Exchange
Now, Amun AG has a total of eight cryptocurrency Exchange Trade products listed on SIX Exchange. The list includes XRP-based ETP, a BTC-based ETP, a Bitcoin Cash (BCH)-based ETP, an ETH-based ETP, the Amun Crypto Basket Index ETP, BTC-ETH ETP and Amun Bitwise Select 10 Large Cap Crypto Index ETP.
Will the newly launched BNB ETP get the right attention from traders? Let us know, what you think in the comments below!
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Source: CoinGape

Libra Association Signs Charter, Announces Board of Directors

Facebook, in its meet at Geneva, has announced its 21 founding members. The association further announced its board of directors.  
Uber, Lyft & Spotify Among Founding Members
After the exit of top payments companies, Facebook has finally announced its team of founding members. Some of the members include Uber, Lyft, and Spotify. The team met in Geneva to sign the Libra Association charter which will govern Libra. Also, the board of directors will consist of David Marcus, Facebook’s leader for the project, and representatives from Andreessen Horowitz, PayU, Kiva Micro funds, and Xapo Holdings.
Spotify in a statement said, 
“Though it is still in the early stages, we look forward to exploring the opportunity offered by the Libra Association to empower billions of people globally, especially in financially underserved markets,”
2/3rd Majority Needed To Bring An Amendment
Per the Council’s interim articles, each member has one vote and is expected to withdraw from the project if there is a conflict of interest. Also, if the council needs to adopt a new amendment, change a Libra policy or dissolve the association, it should be passed by two-third members of the council.  
In case any of the remaining members of the Libra Council wants to exit, they have a provision for transferring their membership “under limited circumstances”  Each member is expected to invest $10 million to fund the association and launch an incentive program for libra. 
From the Co-Creator’s Desk
David Marcus, the co-creator of Libra said that it was motivating to see many representatives coming from different industries having a common mission. 
Source- Twitter
Zuckerberg to Face Lawmakers Next Week
The previous week saw Visa, Mastercard, Stripe and Mercado Page exiting from the project. thus, leaving PayU as the only payments company on the council. The project hit another snag when BookingHoldings also exited the project. 
Facebook CEO Mark Zuckerberg will face lawmakers next week to defend the project at a hearing in front of the House Financial Services Committee. Zuckerberg will be the sole witness at the hearing on the 23rd of October, which is titled, “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”
In July, Chairwoman Waters and other Committee Democrats sent a letter to Facebook. In the letter, they requested an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.
G7 Hardens Stance on Libra
Meanwhile, the G7 economies have hardened their stance on Facebook’s Libra. They have further said that Libra should not proceed further till it gains regulatory clarity. The report by G7 group alleges that Libra is a risk to the global financial system.
Will the signing of the Libra Charter bring any good news for Libra? Let us know, what you think in the comments below!
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Source: CoinGape

2.29 M BNB Transferred To Unknown Wallet- Is A Token Burn in Process?

Per a recent tweet by Whale Alert, a live tracker of large crypto transactions for top 10 cryptos, 2.29M BNB ($41.86M) has been transferred from Binance to an unknown wallet. 
Binance’s Quarterly Token Burn 
With such a large amount of BNB transferred to an unknown wallet is a hint big enough to say that these amount of tokens are going to be burnt. Firstly, 400,000 BNB was sent to the unknown wallet. 
Source – Whale Alert
Secondly, within a span of 15 mins, 790,000 BNB was transferred. 
Source- Whale Alert
Lastly, another 748,900 BNB was transferred 
Source- Whale Alert
Crypto Twitter Speculates The Amount of Token Burn
Interestingly, a twitter user with the handle, CryptosBatman tweeted an hour back that Binance token burn is to take place this week and gave an insight into the historical burn stats. His tweet further got retweeted by Binance’s official handle which confirmed the occurrence of a token burn. 

https://t.co/kJY4xXUTY9 pic.twitter.com/ZTjQsbuK4Z
— Binance (@binance) October 14, 2019
The first, second, third and fourth quarter of 2018 saw 986K, 1.82M, 2.22M, and 2.53 M BNB being burnt respectively. Whereas, 1.62 M and 830K BNB were burnt in the first and second quarter of 2019. 
Source- Twitter
Furthermore, profits worth $50,013, 594 and $78,009,472 were made in 2019’s first two quarters. 
Source- Twitter
Interestingly, the tweet saw the crypto twitter speculating on the amount of BNB that will be burnt. The speculations oscillated between a figure of 925K to even 2.3 M. 
Source- Twitter
CryptosBatMan further speculated that since Binance achieved its ATH in terms of $BNB in the last quarter, the burn amount was low. However, it is expected to be bigger this time. 
Source- Twitter
BNB Token To Include Tokens From Binance Futures
Also, per a blog post on Sept. 12, Binance had announced that it will include all its products into quarterly BNB burns in accordance with community feedback. The new BNB burning practice will include tokens from Binance Futures, the exchange’s crypto futures platform which was rolled out on the 2nd of September. 
BNB Slipped 5% When Q2 Token Burn Was Completed
Token burning permanently removes the decided amount of coins from circulation and it is a deflationary practice. The process does not destroy the tokens per se but renders them useless in the future. The last BNB token burn took place on the 11th of July. It was the 8th BNB token which removed 830K BNB tokens. Also, BNB slipped 5% on the day the burn was completed. 
Will BNB price rise or witness a decline the day BNB token burn is completed? Let us know, what you think in the comments below!
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Source: CoinGape

Booking Holdings Withdraws from Project Libra

Booking Holdings Inc., an online Travel company and the operator of Kayak.com and Priceline.com is the latest to withdraw from project Libra. 
7 Inaugural Members Back Out of Libra Project
Interestingly, Bookings was one of the two dozen companies that expressed initial interest in participating in the project. The departure of the firm implies that seven of the 28 inaugural Libra Project members have now withdrawn from the Libra Association.
Just two days back, eBay, Stripe, and Mastercard exited Facebook’s controversial stablecoin project, Libra.
An eBay spokesperson  then said, 
“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.” 
A Stripe spokesperson also spoke about Libra’s high potential and said that the company might again work with the Libra Association at a later stage. 
“Stripe is supportive of projects that aim to make online commerce more accessible to people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage,” 
Zuckerberg To Announce Major Decisions
The Libra Association has planned to meet Monday at its headquarters in Geneva to finalize the association’s membership. Furthermore, Facebook Chief Executive Officer Mark Zuckerberg plans to announce some decisions at the House Financial Services Committee on Libra, among other topics.
Zuckerberg will be the sole witness at the hearing at the 23rd of October, which is titled, “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”
In July, Chairwoman Waters and other Committee Democrats sent a letter to Facebook. In the letter, they requested an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.
With so many members backing out of Libra and intense regulatory pressure from the lawmakers, the launch of Libra looks far-fetched. 
Will Libra manage to overcome hurdles and launch in December of 2020? Let us know, what you think in the comments below!
 
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Source: CoinGape

Institutional Interest in Bitcoin Futures On A High Says ICE Executive

In an interview with The Edge Markets, ICE Vice-President Jennifer Ilkiw said that a larger number of institutional investors are taking interest in trading Bitcoin Futures. 
Exchanges Lack Risk Management Procedures
Ilkiw said that institutional investors are unable to trade the same on existing exchanges as they continue to be unregulated entities. Furthermore, many of the exchanges lack risk management procedures and comprehensive market surveillance and supervision system to spot market manipulation.
“We have a lot of high-frequency traders who are interested in it. There are also institutional fund managers and brokers calling us to say that they want to trade bitcoin futures,” 
In March, the CBOE had announced that it was reconsidering its approach of offering Bitcoin futures contracts.
ICE is Trying to Fill Gaps
A CNBC news report then suggested that said the CBOE’s decision to stop offering the product could possibly be due to a drop in demand in the retail market last year. This was when Bitcoin prices crashed to about US$13,000 from a peak of about US$20,000.
“In general, there is a lack of institutional infrastructure and platforms to trade [bitcoin] with. That is why we are trying to fill the gaps,”
said Ilkiw.
She then mentioned that this was primarily the reason why ICE, together with other investors, set up the Bakkt Trust Company LLC to offer institutional investors Bitcoin custody services and “physically delivered” Bitcoin Futures contracts
These are offered through a partnership between Bakkt, ICE Futures US. ICE Clear US.  The former provides futures and options trading whereas the latter handles confirmation, settlement, and delivery of transactions.  
She further added that Bakkt bitcoin futures contracts allow investors to trade one Bitcoin per contract. Also, users can trade up to 100,000 contracts. Bakkt offers investors two types of bitcoin futures contracts – daily and monthly futures contracts. The settlement date for its monthly contracts is on the third Wednesday of the month and the delivery of bitcoins takes two days. 
ICE Offers Adequate Protection Measures
Furthermore, Ilkiw suggested that ICE has sound protection measures in place as it has a large pool of investors and the amount of money involved in a single case of fraud could be huge. 
“The existing exchanges are relatively small and may only offer cryptocurrency futures contracts to retail investors. An investor may lose a lot of money trading with them, but the counterparties will still receive their money while the exchange continues to operate,” 
she added.
Future Prospects
When questioned on if major exchanges would adopt a ready approach before getting involved with Bitcoin, she said that ICE launched Bakkt to position itself for the future trends of digital assets, including other asset-backed and non-asset-backed cryptocurrencies.
Will Bitcoin Futures continue to create the same hype in the near future as well? Will we see more exchanges rolling out Futures products? Let us know, what you think in the comments below!
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Source: CoinGape

BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months

Saturday turned out to be the slowest day for crypto markets as total Bitcoin Futures volumes on the BitMEX platform was recorded to be a minor $948 Million. 
Are Bitcoin Futures Trading Low? 
Source- Skew Markets
While the leading derivatives exchange BitMEX only traded futures worth $948 Million, Binance Futures recorded a trading volume of 16k BTC in an hour. Also, recently the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC.
Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
Source- Binance
On the 9th of October, the trading volume of Bitcoin (BTC) futures on the Intercontinental Exchange’s (ICE) Bakkt platform reportedly soared to 224 contracts on Oct. 9, recording an increase of 796%. However, the start of trading on Bakkt showed poor volumes – merely 72 BTC on the first day. Interestingly, the situation has turned for the better and seems to have picked up a relatively healthy pace.
Source- Bakkt Bot
The low trading volume noted on the BitMEX platform could be one of the several instances of a bad trading day and it might gradually pick up.
Furthermore, despite the decline in Bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily Open Interest (OI) of over 4.6K contracts, up 61% vs Q3 2018.
Source- Twitter
As the market continues to garner more opportunities for Bitcoin Futures, it is predicted that Bitcoin prices will gradually increase as futures contracts continue to have a healthy trade volume. 
Bitcoin Perpetual Funding Rates in Positive Territory
All Bitcoin perpetual funding Rates are currently in positive territory. A Perpetual Contract is a derivative product that is similar to the traditional Futures Contract.
Source- Skew Markets
The Funding Rate comprises two main parts the Interest Rate and the Premium / Discount. This rate aims to keep the traded price of the perpetual contract in line with the underlying reference price.  Thus,  the contract mimics how margin-trading markets work as buyers and sellers of the contract exchange interest payments periodically.
Will Bitcoin Futures continue to intrigue investors and traders in the long run? Let us know what you think in the comments below!
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Source: CoinGape

Crypto Weekly: SEC Rejects Bitwise ETF Halts Telegram ICO, UNICEF Launches Crypto Fund

Key Highlights

UNICEF Initiates Crypto Fund
CFTC Could Approve Ethereum Derivatives Trading 
Global Exchanges Urge FCA To Back Down On Its Proposed Ban On Crypto-Linked Derivates
BitFinex and Tether Slapped With a Lawsuit Alleging Market Manipulation
SEC Rejects Bitwise’s Bitcoin ETF
Telegram’s $1.7 Billion ICO Halted by SEC

UNICEF Announces Crypto Fund
The United Nations’ children welfare agency, UNICEF recently announced the formation of the UNICEF Crypto Fund. The prototype will begin with accepting Bitcoin and Ethereum donations. The proceeds of the donation will be invested in blockchain projects that favor UNICEF’s cause. The contributions in BTC and ETH will not be converted into FIAT or any other investment asset as well; it will be put directly into the development of blockchain. The Crypto Fund will be put into innovation projects on the blockchain.
The funds have been limited to no more than 1,000 Bitcoins and 10,000 Ether. The fund has already received its first donation of 1 BTC and 10,000 ETH from the Ethereum Foundation. In total, the existing Innovation Fund has already backed six blockchain companies in a portfolio of 72 companies from 42 nations.
Ethereum Derivatives – No Longer a Distant Reality
Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert in All Markets Summit by Yahoo Finance spoke about Ether(ETH) being a commodity and thus should fall under the jurisdiction of CFTC. He further hinted on Ether Futures trading in the US markets in the near future.
He further mentioned that per his view as the Chairman of the CFTC, Ether is a commodity. Thus, resonating with SEC’s previous ruling that Bitcoin and Ether are not securities. Furthermore, he said that CFTC is working in close cooperation with the SEC to provide clarity on these issues.
Long back in 2015 CFTC had said that Bitcoin and other virtual currencies are commodities. This was even before the SEC deemed cryptos as commodities. Interestingly, this is the first time CFTC has spoken any such thing about Ether.
Will FCA Ban Crypto Derivatives?
Following FCA’s proposed ban on derivatives assets linked to cryptocurrencies such as bitcoin, global exchanges are urging FCA to reconsider its proposed ban on these asset types and continue to allow retail consumers to trade these assets on their platforms.
Britain’s financial watchdog, Financial Conduct Authority (FCA) in July reported that crypto assets were ill-suited to retail investors who couldn’t make informed financial decisions. Therefore, the financial authority proposed to ban crypto-linked derivatives next year. The final changes will be announced in early 2020.
Are Tether and Bitfinex Manipulating the Market?
Crypto Exchange BitFinex and stablecoin Tether (USDT) have found themselves in fresh trouble again. This time, a New York-based law firm, Roche Freedman LLP has slapped a lawsuit against iFinex and associated companies and individuals, accusing them of collectively using cryptocurrency to “defraud investors, manipulate markets, and conceal illicit proceeds”.
The plaintiffs – Roche Freedman LLP have alleged that BitFinex and Tether were two enterprises used in “Part Fraud, Part Pump and Dump and Part Money Laundering.” According to the Class Action Complaint lodged with the United States District Court, South District of New York, the two “commingled their corporate identities and customer funds while concealing their extensive cooperation in a way that enabled them to manipulate the cryptocurrency market with unprecedented effectiveness”.
The complaint also highlights that the two companies were majorly responsible for the 2017 crypto bull run. According to the Tether minted 2.8 billion USDT from 2017 to 2018 and used the token to “flood the Bitfinex exchange and purchase other cryptocurrencies”. As a result of this, the demand for cryptocurrencies got artificially inflated and caused a massive surge in cryptocurrency prices.
No Bitcoin ETF in 2019
The Securities and Exchange Commission has rejected Bitwise’s ETF proposal citing fake volume at cryptocurrency exchanges. This move marks the end of any possible debut of a Bitcoin ETF at any exchange in 2019.
The SEC has refused several applications over the years. Subsequently, Bitwise has presented an extensive research piece and made presentations to the SEC staff to convince them of the requirement of an ETF in the crypto market. In its filing, the former presented its case that the spot prices were derived from the ‘real’ Bitcoin market which consisted of 10 cryptocurrency exchanges. They further alleged that these markets were resistant to manipulation. However, per the federal agency’s mandate, the filing stands rejected and it remains unconvinced.
Telegram $1.7 Billion ICO halted by SEC
The Securities and Exchange Commission (SEC) in a recent has filed an emergency action and obtained a temporary restraining order against two major offshore entities backing Telegram’s TON digital token offering.
Per Telegram’s plan of action, it had promised the delivery of Gram tokens to initial purchasers by October 31, 2019. SEC has alleged that the former failed to register the sale and offering of Grams. The reason given for not registering was states as the tokens are securities.
The SAFT (Simple Agreement for Future Tokens) sale, which was only sold to accredited investors. The deal brought in about $1.7 billion. Gram tokens were sold at a price of around $1.33 and $0.67 initially in the private ICO.
Reportedly, in August reports for a Gram token’s secondary black market started surfacing. There were many over-the-counter (OTC) desks, sales on small cryptocurrency exchanges, and at least one investment fund which were allegedly selling those tokens in the market.
The post Crypto Weekly: SEC Rejects Bitwise ETF Halts Telegram ICO, UNICEF Launches Crypto Fund appeared first on Coingape.
Source: CoinGape

DeFi applications Contributed More Than 2.275 million ETH in Q3: Report

While the second quarter of Ethereum application users was not such an active one, the wave of DeFi (Decentralized Finance) has brought in more than 310,000 new users.
MakerDao and Nest Are The Leading Defi Apps
DeFi applications have contributed more than 2.275 million Ethers in the third quarter. Also, these applications account for more than 58% of all Ethereum applications. The former’s revenue has exceeded more than $525 million in the quarter, with decentralized financial applications in Ethereum accounting for total financial transactions. Leading DeFi apps on Ethereum include MakerDao and Nest. 
MakerDAO is a decentralized credit platform on Ethereum that supports Dai, a stablecoin pegged to USD.  As of March 2019, only ETH can be used as collateral. A planned upgrade to Multi-Collateral Dai is likely to add support for other assets. 
Source- DeFi Pulse
Whereas the Nest dApp supports mutual mortgage lending between mainstream Ethereum assets such as Ethereum(ETH), Tether(USDT), Maker Dao(MKR), DAI, Basic Attention Token (BAT), Omise Go(OMG), and the LOOM token. 
Source- dapp.com
 
Q3 Witnessed More than 500,000 New Users
Also, Q3 saw more than 500,000 new users who started using decentralized applications. Of which more than 138,000 (27.6%) of them started using financial services applications, and 170,000 ( 34%) of them still entered the application field due to gambling applications.
Drop-in dApp Transaction Volume
Also, a recent report by decentralized app platform dapp.com released a few days back found that dapp transaction volume has dropped on major blockchain ecosystems by almost 40 percent compared to last quarter. The figures have plummeted from $3.28 billion to $2.03 billion, despite huge growth in the decentralized finance (DeFi) industry. 
The report analyzed six major blockchains. These included Ethereum, EOS, TRON, Steem, TomoChain, and IOST. Reportedly, these blockchains have the most active users in the market. 
The report revealed that 150 dApps were launched in Q3 which is far less than the average amount of dApps released every month during the first half of the year- 165 apps per month.
Will DeFi continue to have the same success in Q4? Let us know, what you think in the comments below! 
The post DeFi applications Contributed More Than 2.275 million ETH in Q3: Report appeared first on Coingape.
Source: CoinGape

Telegram’s $1.7 Billion ICO Halted by SEC

The Securities and Exchange Commission (SEC)  in a recent announcement has filed an emergency action and obtained a temporary restraining order against two major offshore entities backing Telegram’s TON digital token offering.
Are Telegram Tokens Securities?
Per Telegram’s plan of action, it had promised the delivery of Gram tokens to initial purchasers by October 31, 2019.  SEC has alleged that the former failed to register the sale and offering of Grams. The reason given for not registering was states as the tokens are securities. 
Telegram, a cloud messaging service with over 200 million users had announced its Telegram Blockchain Network (TON) in early 2018. It conducted the sale of its’ cryptocurrency – Gram through a private ICO in February and March 2018.  
The SAFT (Simple Agreement for Future Tokens) sale, which was only sold to accredited investors. The deal brought in about $1.7 billion. Gram tokens were sold at a price of around $1.33 and $0.67 initially in the private ICO. 
 Leading Data Researcher, Larry Cermak said that Telegram planned to spend $400 million on developing TON. Several months later, Telegram also said that it would refund investors’ money if TON doesn’t launch by October 2019. 
Source- Twitter
Reportedly, in August reports for a Gram token’s secondary black market started surfacing. There were many over-the-counter (OTC) desks, sales on small cryptocurrency exchanges, and at least one investment fund which were allegedly selling those tokens in the market.
Coinbase announced a couple of days ago that it’s adding Grams to their custody offering. Today, the SEC announced Grams are securities. How could the Crypto Rating Council not prevent this? 
Coinbase Announced Adding Grams to Custody Offering
A few days back Coinbase announced adding Grams to its custody offering.  Interestingly, the SEC announced today that Grams are securities and the crypto rating council could not do anything to prevent this. 
Source- Twitter
From the Co- Director’s Desk 
“Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold. “We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require. 
said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement. 
He further added 
“We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token. Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”
Was the Whole Idea of ICO Farce? 
TON was expected to go live by the end of Q3 of 2019. The only positive development around it was the Testnet launch earlier this year.
Francis Pouliot, a leading Entrepreneur in the space and Founder of BullBitcoin noted,
Where are the 1.7 billion dollars of the Telegram ICO? Afaik all they have to show for their 1,700,000,000$ of financing is this and as far as I can tell nobody seems to give a shit
Moreover, the ton.org site has not been developed as well. Pouliot also accused the issuers and investors of the token of scheming “shady public financing schemes” to launder money and dupe investors.
What will be SEC’s new verdict? Let us know, what you think in the comments below? 
The post Telegram’s $1.7 Billion ICO Halted by SEC appeared first on Coingape.
Source: CoinGape

eBay, Stripe and Mastercard Bid Adieu to Project Libra

Per a recent revelation by Bloomberg and Financial Times, eBay, Stripe, and Mastercard have exited Facebook’s controversial stablecoin project, Libra. 
eBay & Stripe Follow Same Suit as PayPal
The decision by eBay, Stripe, and Mastercard comes just a week after PayPal’s departure from the project. Interestingly, the firms were among the first 28 inaugural members of the Libra project. 
An eBay spokesperson said, 
“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.” 
A Stripe spokesperson also spoke about Libra’s high potential and said that the company might again work with the Libra Association at a later stage. 
“Stripe is supportive of projects that aim to make online commerce more accessible to people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage,” 
As a matter of fact, the announcement comes just two days before the Libra Association’s meet in Geneva, where the members are expected to sign a chartered agreement. Also, representatives from the companies will appoint a board of directors for the Libra Association at the meeting.
The meeting of the Libra Association is close to the G20 meeting on Oct 17-18th. The names in the list of 1500 interested parties and the existing structure of the Council will be instrumental to the progress and its public image.
While popular companies continue to back out of Libra, Xavier Niel, French Tycoon and the founder of Telecoms group Iliad said that the coming of project Libra is “inevitable” and it will exist like other 1000+ cryptocurrencies in the market. 
Will project Libra see daylight and get regulatory approval? Let us know what you think in the comments below!
The post eBay, Stripe and Mastercard Bid Adieu to Project Libra appeared first on Coingape.
Source: CoinGape

CFTC Could Approve Ethereum Derivatives Trading in the Near Future

Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert in All Markets Summit by Yahoo Finance spoke about Ether(ETH) being a commodity and thus should fall under the jurisdiction of CFTC. He further hinted on Ether Futures trading in the US markets in the near future.
CFTC Chairman Speaks About Ether
Tarbert in the summit also said that CFTC had always been clear on Bitcoin and the fact that it is a commodity. He further mentioned that per his view as the Chairman of the CFTC, Ether is a commodity. Thus, resonating with SEC’s previous ruling that Bitcoin and Ether are not securities. Furthermore, he said that CFTC is working in close cooperation with the SEC to provide clarity on these issues.
Long back in 2015 CFTC had said that Bitcoin and other virtual currencies are commodities. This was even before the SEC deemed cryptos as commodities. Interestingly, this is the first time CFTC has spoken any such thing about Ether. 
Tarbert says that “forked” assets like Bitcoin Cash (BCH), Bitcoin Gold (BTG), and Ethereum Classic (ETC), should be treated by regulators the same as the original asset. Tarbert said
“It stands to reason that similar assets should be treated similarly. If the underlying asset, the original digital asset, hasn’t been determined to be a security and is, therefore, a commodity, most likely the forked asset will be the same. 
He continued saying, 
“Unless the fork itself raises some securities law issues under that classic Howey Test.”
The “Howey Test” refers to a 1946 case involving the selling of shares in a citrus grove that the SEC now uses as its north star in determining whether a digital currency behaves like security. 
Ethereum Perpetual Contacts Suffer as Prices Remain Unscathed
While CFTC’s announcement brings in a ray of hope for Ethereum enthusiasts, Ethereum perpetual contracts are going through a rough phase in October in terms of time settlement. September saw several investors entering the Ethereum market as bullish sentiment was observed on Bitfinex. Moreover, Ethereum rose from $183 to $216.70, a price hike that had a positive effect on its derivatives market. 
Source- Skew Markets
Insurance fund for a Futures or Perpetual contract is kept in order to cover the negative equity of unsuccessful liquation on the trader’s position. The fact that makes it important is that any possibility of inadequate payoff on a winning derivative trade for a user can be avoided.
The bullish sentiment has inadvertently gone for a toss. As a matter of fact, over 10,000 Ether calls were traded on ETH futures, where bets were placed on ETH crossing a valuation of $500 by the end of December. However, the bets were placed before the spike in September. Since then the market has returned to a standstill with the current price at $189.14. 
It will be interesting to note how far CFTC Ether derivatives perform? Let us know, what you think in the comments below!
The post CFTC Could Approve Ethereum Derivatives Trading in the Near Future appeared first on Coingape.
Source: CoinGape

Binance Users Can Now Deposit Fiat With WeChat and AliPay

Binance platform is all set to add Alipay and Wechat pay to its fiat gateway. 
Good News For Chinese Traders
The announcement came through a screenshot posted by BitDeer Founder, Haiyi(Celine) Lu in which the Binance Founder, CZ was tagged. Interestingly, the latter responded with a “YES”. 
Source- Twitter
The initiative is currently in a testing phase for Android users and will eventually be fully rolled out on iOS and Web. WeChat Pay and AliPay became two of the most popular payment processors for crypto traders after the Chinese regulators announced a ban on running crypto exchanges and trading platforms. 
This then prompted investors to continue trading without an exchange by using peer-to-peer trading platforms like LocalBitcoins.
Binance Launches P2P Trading Against Chinese Yuan
In another announcement, Binance has launched P2P trading functionality with Bitcoin(BTC), Ethereum(ETH) and Tether(USDT) available for trading against CNY (Chinese Yuan). Presently, access to P2P trading will be initially provided to Android users (Version: 1.12.1) that have Binance accounts registered for over 30 days. 
P2P(also known as peer-to-peer) trading is a trading style in which two parties interact or trade directly with each other. In this case, parties directly engage with one another to buy or sell cryptocurrency.
Also, recently Binance released a mobile application and an android version for its respective staking and lending platforms. The application will be beneficial for Future traders as they can trade with just the tap of a button.
Binance On A Developmental Spree
Binance has been ongoingly announcing developments after developments.  Between the second and third quarters of this year, the crypto exchange launched platforms for staking, lending, and futures contracts. It also made significant expansions to many other regions by developing subsidiaries like Binance U.S.
What will be Binance’s next development initiative? How profitable will it for the Chinese traders? Let us know what you think in the comments below!
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Source: CoinGape