DeFi’s biggest names contribute to $1.1M investment in dHEDGE’s fund managers

DeFi’s biggest names contribute to $1.1M investment in dHEDGE’s fund managers

Some of the biggest names in DeFi, including Framework Ventures and Alameda Research, are backing the expansion of decentralized asset management protocol dHEDGE.The investors and the protocol’s decentralized autonomous organization (DAO) will collectively invest $1.15 million into an initial cohort of 33 fund managers operating on the platform.dHEDGE is a non-custodial social trading platform that allows users to choose asset managers to pool their funds with. The managers’ past trading performance is available for scrutiny, and uploaded to a distributed ledger to ensure immutability. Managers invest using synthetic assets in the Synthetix ecosystem.The total comprises 651,000 sUSD from the dHEDGE DAO, and 550,000 sUSD contributed by dHEDGE investors Framework Ventures, DeFiance Capital, Divergence Ventures, Mechanism Capital, Klein Blue Capital, and Alameda Research.Combined with the funds put forward by the fund managers themselves, dHEDGE expects more than 1.8 million sUSD to be deployed across its pools over the coming days and weeks.Speaking to Cointelegraph, dHEDGE’s Henrik Andersson stated the team is “very impressed by the roster of managers” overseeing pools on the platform, noting the presence of South East Asia crypto investor NGC Asset Management.Andersson also noted that the platform hosts managers overseeing investments in traditional, non-crypto-native asset classes, emphasizing his excitement for the platform’s growth in 2021:“Decentralized asset management is set to become a core primitive in the DeFi space.”Framework Ventures’ co-founder, Michael Anderson, predicted that the next phase of growth for the DeFi sector is contingent on “bringing in the expertise of financial service professionals and showing them the power” of decentralized finance protocols.Looking forward, Anderson predicted that DeFi will begin to cut into the market share of “centralized crypto finance” platforms — describing such as the dial-up internet of the virtual currency sector:“The existing borrow/lend, exchange, and derivatives platforms will start to be replaced with DeFi upstarts. Layer 2 solutions will be looked back as the ‘dial-up to broadband’ moment for our industry.”dHEDGE DAO’s investment is still pending approval from the stakers of dHEDGE’s native DHT token, with voting on whether to mobilize the funds set to close on Nov. 27. The investment will proceed should the proposal receive more votes in favor than opposed.If passed, the proposal will see the DAO match the investments made by 17 of the fund managers —…

Ethereum 2.0 Deposit Contract Secures Enough Funds to Launch

Ethereum 2.0 Deposit Contract Secures Enough Funds to Launch

The smart contract required for triggering the first phase of Ethereum 2.0 has enough funds to begin activation of Ethereum’s most ambitious upgrade yet, which will radically shift Ethereum’s economic model, resource usage and governance.The Ethereum 2.0 deposit contract, which was released in early November, has accrued more than 540,000 ETH ($300 million) late Monday night, ensuring that the beacon chain for Ethereum 2.0 will launch next week, formally beginning the second-largest cryptocurrency’s shift from a proof-of-work consensus mechanism to a proof-of-stake one in hopes of solving a number of issues, including scalability.The Ethereum Foundation had previously set a soft launch date for Dec. 1, assuming the deposit contract saw 524,288 ETH staked by Nov. 24. It hit the target with hours to spare, after more than 150,000 ETH were deposited in a 24-hour period.The last 25% of the ETH needed to trigger the contract was deposited in four hours. The contract held just 385,440 ETH as of 22:45 UTC on Monday.Ethereum saw its price rise nearly 10% over a 24-hour period Monday, surpassing $600 for the first time in two years. To be clear, the network itself isn’t launching just yet. The launch of Ethereum 2.0 will activate a parallel proof-of-stake blockchain dubbed “the beacon chain” to run in parallel alongside the existing Ethereum network. The initial phases of its development will not impact existing users and decentralized applications on Ethereum.The primary stakeholders of the beacon chain at Ethereum 2.0 launch will be validators, the equivalent to miners on a proof-of-stake network. Like miners, validators earn rewards on the network in exchange for processing transactions and creating new blocks. In order to become an Ethereum 2.0 validator, a user must stake a minimum of 32 ETH through the deposit contract.At the outset of the network, validators are expected to earn roughly a 20% annualized reward on their staked ETH. More than 16,300 validators will be securing the network at launch.The beacon chain activation is the first of four phases of the Ethereum 2.0 migration, which begins with the onboarding of validators and eventually leads to the full transition of all users and dapps to the new network. There are several theories on how the crypto markets will react to the dual blockchain system of Ethereum…

MCS Introduces a Market Maker Program With the Best Benefits in the Industry

MCS Introduces a Market Maker Program With the Best Benefits in the Industry

PRESS RELEASE. Singapore, November 23, 2020 — MCS (MyCoinStory), a fast-growing cryptocurrency derivatives exchange headquartered in Singapore, announced on November 23 that it has officially launched a market maker program. As a latecomer to the industry, MCS claimed that it has prepared unprecedented benefits, in comparison with other exchanges, for its market maker program. As an exchange that uses #Be_a_Trader as its slogan, MCS provides a higher API limits and trading fee advantages above the industry average based on the trading volume so that market makers participating in the program can trade in a more favorable environment than other exchanges. In addition, it has been announced that a dedicated manager is assigned to support various situations that may occur during trading 24/7. According to an official from the MCS, he said “MCS, which is known for its aggressive listing of “hot” cryptocurrencies in the market that brings in a lot of traders, and for having the second-most Bitcoin-settled products after BitMEX, the industry’s number one, is looking for market maker partners.” He also added that “MCS welcomes competent companies and individuals who can actively provide greater liquidity to the platform for traders.” MCS (MyCoinStory) is a rapidly growing exchange with a daily trading volume of $100 million according to CoinGecko. On November 18, MCS launched the first Bitcoin Cash ABC futures contract, and its recently announced industry’s lowest maintenance margin rate of 0.35% is allowing traders using the exchange to trade in a more favorable environment. One can apply for the MCS Market Making (MM) program via partner@mycoinstory.com. About MCS (MyCoinStory) MCS (mycoinstory.com) is the next-generation cryptocurrency perpetual contract trading platform created by experts from the financial and blockchain industries. Together with a team of experts, MCS is walking side by side with traders’ to access financial freedom in the best way possible by creating a reliable trading environment for traders which includes enterprise-level IT systems, multilingual online customer support, and a partnership with the industry-leading digital asset custodial company, ‘BitGo’. MCS is constantly improving its trading platform for traders so that traders can dream of a better future. As the slogan #Be_a_Trader shows, MCS is focused on giving every trader in the platform the authentic ‘trading’ experience through various features and training materials.  …

SEC Chairman Jay Clayton Explains US Crypto Regulation, Calls Bitcoin a Store of Value

SEC Chairman Jay Clayton Explains US Crypto Regulation, Calls Bitcoin a Store of Value

The chairman of the U.S. Securities and Exchange Commission (SEC) has explained how the U.S. government is regulating cryptocurrency. He calls bitcoin a store of value, noting that its rise is driven by the inefficiencies of the current payment system. How Bitcoin Is Regulated in the US SEC Chairman Jay Clayton explained how the U.S. government is regulating bitcoin during an interview with CNBC Squawk Box on Thursday. He began by responding to a comment made by JPMorgan CEO Jamie Dimon regarding bitcoin regulation. Dimon said that he was not a supporter of bitcoin because in his experience, the government “can regulate whatever they want when they feel like it.” Given the current bitcoin market capitalization of about $340 billion, Dimon asserted that “If it gets bigger and bigger and bigger, it will be regulated.” Clayton described that at the SEC: We determined that bitcoin was not a security, it was much more payment mechanism and store of value. “We did not regulate bitcoin as a security,” the SEC chairman affirmed. He added that during the initial coin offering (ICO) craze, “people were using ICOs and essentially making public offerings of securities without registering them with the SEC,” reiterating that “When people use crypto assets as securities to raise capital for a venture, the SEC regulates that.” Regarding bitcoin as a payment mechanism, the chairman emphasized: The government does regulate payments and what we are seeing is that our current payment mechanisms, domestically and internationally, have inefficiencies, those inefficiencies are the things that are driving the rise of bitcoin. “We are going to see more of that … we are going to see this mature and we are going to see more regulation around the payment space,” the SEC chairman noted. Clayton confirmed on Nov. 16 his plans to conclude his tenure at the end of the year after serving for more than three and a half years at the SEC. “Chairman Clayton was sworn in on May 4, 2017, and will leave the SEC as one of its longest-serving chairs,” the SEC wrote. What do you think about the US crypto regulation and Clayton’s view? Let us know in the comments section below. Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for…

Bitcoin go up, Coinbase go down: Exchange outages and trader outrage

Bitcoin go up, Coinbase go down: Exchange outages and trader outrage

Coinbase appears to have a capacity problem. Users have pointed out for years that when Bitcoin and other crypto assets are especially volatile, the exchange sometimes goes offline without warning. These outages can prevent customers from buying or selling their crypto assets and are generally viewed unfavorably by traders.Between March and November, the exchange recorded nine different issues leading to various types of outages or connectivity problems, although direct customer impact is somewhat unclear in some of the instances. The issues seemingly range in their degree of severity. The main status update posted by Coinbase during such times is:  “Coinbase.com is experiencing connectivity issues.”Four of these instances coincided with volatile Bitcoin price action, according to 30-minute price candles on TradingView.com.On April 29, Coinbase reported connectivity issues. In an update to its status that was posted later, Coinbase.com appeared to have suffered issues between 10:00 am and 12:30 pm PDT on that day. Bitcoin’s price moved 4.54% during that time window. Cointelegraph previously reported on platform difficulties seen on that day. On May 9, Coinbase notified the public of another difficulty, again stating: “Coinbase.com is experiencing connectivity issues.” This time, Bitcoin’s price moved 15.26% between 5:00 pm and 6:00 pm PDT — the time window showing difficulties, based on the status, which also included added details published several days after.Coincidence that everytime we have huge market moves @coinbase shuts down? @SEC_Enforcement seriously investigate this is fishy. We need some transparency on this— Alex Cobb (@AlexCobb_) May 10, 2020 The third instance correlating with notable Bitcoin price action happened on June 1, when Coinbase once again notified the public of connectivity issues. This incident seemingly impacted users on some level between 4:00 pm and 5:00 pm PDT, during which time Bitcoin moved 6.94% in price. The days following this particular incident saw some Coinbase customers leave the platform, judging by Bitcoin withdrawals and reported by Cointelegraph on June 9. Coinbase also suffered another connectivity issue on July 28 between 2:00 am and 4:30 am PDT, during which Bitcoin moved 3.82% in price.Not all of Coinbase’s issues have coincided with major BTC price swing days, however. Coinbase notified the public of issues on Nov. 16, stating: “Website and mobile apps not loading.” Bitcoin only moved roughly 1.72% in price during the stated time window of the problems,…

Bitcoin is already outperforming the halving that sparked $20K all-time high

Bitcoin is already outperforming the halving that sparked $20K all-time high

Bitcoin price has more than doubled since its latest block subsidy halving and is now outpacing its last bull run.Data compiled by on-chain monitoring resource ChartsBTC on Nov. 23 shows that versus its two previous halvings, Bitcoin (BTC) in 2020 is right on track to deliver major price gains.Bitcoin price up 120% since MayUsing figures from Coin Metrics and statistician Clark Moody, ChartsBTC’s Halving Index compares Bitcoin’s progress since May’s halving with the six months after the 2012 and 2016 events.The results show that in terms of price action, Bitcoin is beating its run to 2017’s all-time highs of $20,000. Only 2012 produced quicker upside, at a time when at the halving, BTC/USD traded at just $12.Six months after the halving, Bitcoin’s price is 2.2 times higher in 2020. 2016 was more like 1.3 times, while 2012 produced a 12-times upside in the same period. Bitcoin Halving Index chart. Source: ChartsBTCWaiting on an order of magnitudeThe data adds fuel to the argument that Bitcoin in 2020 has little in common with how it looked three years ago. Buyers have changed and now take the form of corporate giants satisfying client demand and investing for the long term, not for speculation. For PlanB, the quantitative analyst responsible for the stock-to-flow-based Bitcoin price models, this is all too apparent as a catalyst for further price gains. As Cointelegraph reported earlier Monday, he believes that January 2021 could mark the start of a much more rapid appreciation cycle, which would also chime with performance after both previous halvings. “Monday! Paypal, Grayscale and Square will resume buying today,” he mused about the habits of Bitcoin’s latest large-volume bulls.Last week, meanwhile a comparative chart of Bitcoin “halving candles” put 2020 into perspective, showing just how much potential remained before the current halving cycle ends in 2024. Bitcoin halving candles chart. Source: ChartsBTCEach candle propelled BTC/USD to a price that was an order of magnitude larger than the last. 2024, therefore, should produce a $100,000 price tag if history repeats.

Eth 2.0 Deposit Contract Secures Enough Funds to Launch

Eth 2.0 Deposit Contract Secures Enough Funds to Launch

The smart contract required for triggering the first phase of Ethereum 2.0 has enough funds to begin activation of Ethereum’s most ambitious upgrade yet, which will radically shift Ethereum’s economic model, resource usage and governance.The Ethereum 2.0 deposit contract, which was released in early November, has accrued more than 540,000 ETH ($300 million) late Monday night, ensuring that the beacon chain for Ethereum 2.0 will launch next week, formally beginning the second-largest cryptocurrency’s shift from a proof-of-work consensus mechanism to a proof-of-stake one in hopes of solving a number of issues, including scalability.The Ethereum Foundation had previously set a soft launch date for Dec. 1, assuming the deposit contract saw 524,288 ETH staked by Nov. 24. It hit the target with hours to spare, after more than 150,000 ETH were deposited in a 24-hour period.The last 25% of the ETH needed to trigger the contract was deposited in four hours. The contract held just 385,440 ETH as of 22:45 UTC on Monday.Ethereum saw its price rise nearly 10% over a 24-hour period Monday, surpassing $600 for the first time in two years. To be clear, the network itself isn’t launching just yet. The launch of Ethereum 2.0 will activate a parallel proof-of-stake blockchain dubbed “the beacon chain” to run in parallel alongside the existing Ethereum network. The initial phases of its development will not impact existing users and decentralized applications on Ethereum.The primary stakeholders of the beacon chain at Ethereum 2.0 launch will be validators, the equivalent to miners on a proof-of-stake network. Like miners, validators earn rewards on the network in exchange for processing transactions and creating new blocks. In order to become an Ethereum 2.0 validator, a user must stake a minimum of 32 ETH through the deposit contract.At the outset of the network, validators are expected to earn roughly a 20% annualized reward on their staked ETH. More than 16,300 validators will be securing the network at launch.The beacon chain activation is the first of four phases of the Ethereum 2.0 migration, which begins with the onboarding of validators and eventually leads to the full transition of all users and dapps to the new network. There are several theories on how the crypto markets will react to the dual blockchain system of Ethereum…

XRP price rallies 91% in a month due to 3 fundamental factors

XRP price rallies 91% in a month due to 3 fundamental factors

In the past month, the price of XRP rallied 91% as the digital asset at last found some spark and is now playing catch up with Bitcoin (BTC) and Ether (ETH).  The likely catalysts for the XRP rally are the rise in unique addresses, buybacks from Ripple, and the possibility of a new product realease.XRP/USD weekly chart. Source: TradingView.comUnique XRP addresses increaseOn-chain data can be useful for depicting the overall sentiment around a cryptocurrency as it accurately reflects the activity taking place in the blockchain.In the case of XRP, addresses interacting with XRP spiked in late November. The trend intensified when the cryptocurrency rose 27% in one day on Nov. 22.Spike in XRP daily addresses. Source: SantimentAnalysts at Santiment, an on-chain analysis firm, said the single-day increase in active addresses was the largest since May 1. They wrote:“Ripple’s price skyrocketed +27% today, and the amount of unique addresses transacting on the $XRP network in a single day (24,408) was the highest output since May 1st.”Active addresses can increase in tandem with the price for several reasons. First, the number of addresses accumulating XRP could increase its value spikes. Second, there could be a general spike in user activity on the blockchain.Ripple buybacks could be driving XRP price higherDuring the third quarter of 2020, Ripple bought $45.5 million worth of XRP in a repurchasing program. The company described the initiative as a move to support healthy markets.The sales summary listed on the Q3 2020 report detailed total purchases of $45.5 million. In previous quarters, Ripple did not repurchase XRP. The report reads:“As indicated in the Q2 2020 XRP Markets Report, Ripple is purchasing – and may continue to purchase – XRP to support healthy markets.”A buyback can cause the buyer demand for an asset to increase, whether it is stocks, commodities, or cryptocurrencies.Even though $45.5 million might not be a large enough figure to significantly impact the value of XRP in the cryptocurrency exchange market, it could have buoyed the market sentiment around the asset.Ripple may debut a new serviceIn early November, Ripple Labs filed a trademark for a product called Paystring with the U.S. Patent and Trademark Office (USPTO).The trademark application describes Paystring as a product within the electronic financial services category for receiving and sending…

IRS Again Warns Crypto Investors They Under-Reported Gains

IRS Again Warns Crypto Investors They Under-Reported Gains

For the second year in a row, the Internal Revenue Service (IRS) is warning cryptocurrency investors they underreported their holdings. But it may be another false alarm.“Dozens of individuals” recently received notices that they owe taxes on gains from crypto holdings that they did not report when filing in 2018, according to a blog post published Monday by tax software provider CryptoTrader.tax. Shehan Chandrasekera, head of tax strategy at CoinTracker, said he’d also heard of crypto investors receiving these letters this year.The form CP2000 letters state how much the IRS believes the users owe and provide due dates for payment. However, the users likely never realized these gains, and don’t actually owe these funds, CryptoTrader.tax said. Similar letters were sent to crypto exchange users last year. At the time, Justin Woodward, the co-founder of TaxBit, another software vendor, told CoinDesk that people received letters because their exchange reported transactions to the IRS using form 1099-K. This IRS form shows all transactions as generating revenue, even if some transactions actually resulted in a loss for the user. As a result, an exchange might report a dramatically inflated tax burden for the user. The letters sent in 2019 were for the 2017 tax year.The same issue appears to be occurring this year, according to CryptoTrader’s blog post. “These CP2000 cryptocurrency-related tax mishaps all stem from the fact that Coinbase and other exchanges use Form 1099K to report crypto proceeds to the IRS. This is a problem,” the blog post said. According to a photo on CryptoTrader’s blog post, at least one Coinbase user is definitely affected. It is unclear whether users from other exchanges are also receiving these letters.Users who receive one of these forms should calculate their actual gains and losses, and report those to the IRS, the post said.Exchanges could prevent this issue by sending 1099-B reports to the IRS, which accurately mark gains and losses, rather than the merchant-focused 1099-K forms, TaxBit’s other co-founder Austin Woodward told CoinDesk in March. At the time, he said that “there was never any clear IRS guidance that [the 1099-K] was the correct form.”Spokespersons for the IRS and Coinbase did not immediately return requests for comment.

A Bitcoin Shortage? PayPal and Cash App Buying More Than 100% of New Supply

A Bitcoin Shortage? PayPal and Cash App Buying More Than 100% of New Supply

When demand from these two sources alone exceeds the entire supply of newly minted bitcoins, expect serious supply pressure to follow.Our main discussion: a narrative shift, growing attention and a bitcoin shortage. What happens when demand exceeds supply and supply is being gobbled up aggressively by new market actors? That’s the question posed by Pantera’s recent investor letter and today’s Breakdown episode.