CEO of Morgan Creek Capital Mark Yusko says bitcoin (BTC) should be in every investor’s portfolio in an interview with CNBC on May 22. Yusko remarked that he thinks BTC investments will far outperform the S&P 500 investment fund over the next 10 years.When asked about putting money into BTC, Yusko said: “Bitcoin is a great diversifying asset. It has very low correlation. It should be in everybody’s portfolio.” Yusko also recalled his $1 million ‘Buffet Bet 2.0’, in which Morgan Creek Digital made an open bet that its Digital Asset Index Fund would outperform the SPX from January 2019 to January 2029. The Digital Asset Index fund includes ten major crypto assets — not just bitcoin. The proceeds of the bet would reportedly be donated to charity. Yusko has previously been very bullish on bitcoin, going on record predicting a $400,000 high for the cryptocurrency at some point. In addition to his optimistic prediction, he commented on its potential for disrupting traditional banking and finance: “This will change the supply and demand equation for banking. It is that big. I’m not surprised at all that bankers, financiers and Saudi Princes are coming out against it. This is a truly disruptive technology.” As previously reported on Cointelegraph, bitcoin recently hit a peak of over $8,000. Bitcoin is currently trading at $7,902 and is trending up by 2.76% at press time, according to data from CoinMarketCap.
Thursday, May 23 — Cryptocurrency markets are starting to move upward, having overcome the drop in the beginning of the day, according to Cointelegraph’s Coin360. Market visualization from Coin360 The leading cryptocurrency bitcoin (BTC) started the day at $7,638 gradually reaching its intraday high of $7,946. At press time, bitcoin is trading at around $7,914, up 2.64% over the past 24 hours. Bitcoin 24-hour price chart. Source: CoinMarketCap The second-largest cryptocurrency, ether (ETH), has also taken an upturn and is currently trading at around $246.50, up 0.60% on the day. During the day, ether experienced a slump to as low as $233.89, while its daily high was $247.62. Ethereum 24-hour price chart. Source: CoinMarketCap As reported earlier today, American digital asset manager Grayscale Investments confirmed its Ethereum Trust (ETHE) has gained regulatory approval from the Financial Industry Regulatory Authority for retail trading. Set to become the first publicly-quoted security based on ethereum, ETHE received the go-ahead from FINRA to trade on over-the-counter markets. Ripple (XRP) is up 1.05% on the day to trade at $0.381. The altcoin’s market capitalization is around $16.07 billion, while its circulating supply is nearly 100 million to press time. Ripple 24-hour price chart. Source: CoinMarketCap Among the top-20 cryptocurrencies by market capitalization, bitcoin SV (BSV), cosmos (ATOM) and dash (DASH) are trading in the red, down by 0.94%, 2.58%, and 0.56% respectively. Cosmos (ATOM) has seen the biggest losses over the past day and is trading at around $4.28 at press time. Throughout the day, the altcoin has been gradually sliding to its current price, while it started the day at $4.44. Cosmos 24-hour price chart. Source: CoinMarketCap Total market capitalization of all cryptocurrencies is around $245 billion at press time –– up а solid $6 billion from $240 billion at the start of the day. The 24-hour trading volume of all cryptocurrencies on the CoinMarketCap is around $75 billion at press time. Total market capitalization 24-hour chart. Source: CoinMarketCap Meanwhile, oil prices tumbled nearly 6% today, extending steep losses in the previous sessions, as a reaction on a prolonged United States-China trade war, according to CNBC. U.S. West Texas Intermediate crude futures reportedly settled $3.51 lower at $57.91 per barrel, tumbling 5.7% to the lowest closing price since March…
Crypto trading has always entailed a blend of skill and good fortune, but in the frothy markets of 2019, that weighting is skewed heavily in favor of the latter. Fundamentals go out the window when there’s a surety that the latest token is going to pump at any moment. For traders with a low timeframe patience, bitcoin will always be the safer and more profitable bet. But when your friends are getting fleetingly rich on altcoins, the temptation to FOMO in can prove irresistible. Also read: US Copyright Office Responds to Craig Wright’s Bitcoin Registrations Traders Are Betting Big and Losing Large at the Crypto Casino In the drawdown that followed the excesses of 2017, traders were taught a sobering lesson. Despite vowing to change their ways, stop being greedy, and learn to take profits along the way, it appears that old habits die hard. It was a little more than two months ago that BTC broke free of the $4,000 price point it had been locked into, embarking on a mazy run that’s seen it double in price and drag the rest of the market up with it. This has brought significant cheer to the beleaguered cryptosphere, as can be seen in the sentiment score indicators by data firm Omenics, which maps the mood of the markets alongside the price of the corresponding asset. BCH sentiment scoreIts social sentiment score for BCH, shown in purple, has broken its previous high and is heading to the positive zone, according to data for the week ending May 21. BTC sentiment scoreBTC is showing similar positive signs, though there is a notable drop depicted on May 9, which Omenics attributes to the Binance hack and the reorg debate this sparked. Even though BTC has retraced a little from the year’s high of $8,300, the mood of the markets remains distinctly greedy, according to an alternative sentiment analysis service. Day Traders Are Going for Broke With IEOs launching across scores of exchanges, there’s scarcely time to agree to the T&Cs and send funds, let alone perform DD on the project and the token metrics. Meanwhile, Binance tokens are performing impressive, albeit unsustainable, feats of multiplication; matic did 8X in a little over 10 days, aided by market makers,…
2. It is based on a consensus mechanism called delegated proof-of-stake (DPoS). On a PoW blockchain like bitcoin, miners employ large amounts of computational power to solve complex mathematical equations. Once the equation is solved, the miner publishes the answer for verification by the other miners on the network, and consensus is reached. The block is then added to the chain, the miner that solved the equation collects his/her block reward, and everyone moves on to the next equation. On a PoS network like Cardano, nodes stake an amount of tokens (essentially locking up tokens in a specific wallet address for a set period of time) for the chance of being selected to add the next block of transactions to the chain. Although the selection is random, factors such as the amount staked, the amount of time it has been staked and the reputation of the node are often taken into consideration. Delegated proof-of-stake is a version of PoS, where instead of validators being chosen at random, they are voted for by the rest of the token holders on the network. Another difference on EOS specifically is that, instead of purely staking EOS tokens, Block Producers stake their investment in the network in the form of infrastructure, community support, development, etc. We’ll look at this more in-depth below. These delegates are then tasked with upholding the integrity and accuracy of the network by coming to a majority consensus on data or transaction blocks that have to be added to the network. Brendan Blumer, CEO of Block.one, the company behind EOS, describes Block Producers in the EOS.IO technology as “21 elected delegates by the token holders that are actually confirming the transactions of the network.”
Starting today, Coinbase supports Dai (DAI) at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store DAI. DAI will be available for customers in most jurisdictions, but will not initially be available for residents of the state of New York. According to the DAI whitepaper, DAI is a decentralized stablecoin running on Ethereum that was designed with a goal of maintaining a target value of approximately US$1.00. Unlike most centralized stablecoins, DAI isn’t backed by US dollars in a bank account. Instead, it’s backed by collateral on the Maker (MKR) platform. The relevant whitepapers explain that MKR and DAI tokens form a paired set of assets in which MKR provides governance, and DAI is a decentralized, collateral-backed stablecoin. One of the most common requests we receive from customers is to be able to trade more assets on our platform. With the announcement of our listing process last year, we anticipate listing more assets over time that meet our standards. We are also investing in new tools to help people understand and explore cryptocurrencies. We launched informational asset pages (see DAI here), as well as a new section of the Coinbase website to answer common questions about crypto. You can sign up for a Coinbase account here to buy, sell or convert DAI today.
Individual investors will soon be able to invest in Grayscale Ethereum Trust, billed as “the first U.S. publicly quoted security solely invested in and deriving value from the price of ethereum.” The Financial Industry Regulatory Authority (FINRA), Wall Street’s self-regulatory organization (SRO), has approved public quotation of shares in the trust, Grayscale Investments announced Thursday. “All kinds of investors will be able to gain exposure to the price movement of ethereum without the challenges of buying, storing, and safekeeping ethereum,” wrote Marissa Arnold, a spokesperson for Grayscale, in an email to CoinDesk. The trust managed about $7.5 million worth of the world’s second-largest cryptocurrency by market cap as of April 30, according to Grayscale’s website. The security will trade over the counter (OTC) under the symbol ETHE. Entry-level investors will be able to own and trade an instrument tied to ethereum alongside their shares of Apple and IBM. The trust, created in December 2017, previously was open only to accredited investors and required a minimum $25,000 investment. Grayscale has not yet determined exactly when the security will be available for trading (it estimated this will take about two weeks), but the FINRA approval is an important step in the process. Ethereum image via Shutterstock
Major cryptocurrency platform Coinbase now supports stablecoin Dai (DAI), according to an official press release on May 23. Coinbase says that the token can be purchased and sold, sent and received, and converted or stored in most jurisdictions on its platform, with the exception of New York, for now. DAI is designed to maintain a 1:1 value with the U.S. dollar, but is backed collateral on the MKR platform. Both Ethereum-based token MKR and DAI are issued by MakerDAO. However, DAI has been worth under $1 for much of 2019, which has sparked five voting sessions from DAO users on raising the stability fee for reclaiming collateral, in an effort to keep the token closer to its intended value of $1. Coinbase recently announced that its cryptocurrency payment processor, Coinbase Commerce, will now support the stablecoin USDC. The addition of this stablecoin support will reportedly allow users to receive payments without transaction fees by receiving money in USDC. In the announcement, Coinbase also commented that USDC payments circumvent the need for a bank account or geographical limitations. Coinbase has also greatly expanded its geographical support for trading as well as its educational program Coinbase Earn, with the former being available in 50 new countries and the latter in over 100 new countries. According to Coinbase, giving trading support in more countries catalyzes the future of world-wide crypto trading, and stablecoin options could have great impact for some countries in the immediate future: “For new customers in countries like Argentina and Uzbekistan, where consumer prices are expected to inflate by 10–20% in 2020, stablecoins like USDC could provide an opportunity to protect against inflation.”
United States-based film producer Ryan Kavanaugh’s Proxima Media has unveiled a $100 million investment for a cryptocurrency-based film funding tool, entertainment industry news outlet TheWrap reported on May 23. Per the report, Proxima Media — which Kavanaugh founded and owns — announced plans for a new crypto-enabled financing tool for film, TV, music and other intellectual property-driven content dubbed Proxicoin. Proxima reportedly received the investment from garment production company Central Wealth Group and venture capital fund Step Ventures. Proxicoin reportedly plans to issue Ethereum-based security tokens that allow holders to invest in movies and TV shows. The company said that the token has already been built and audited, and that a deal with Malaysia-based Fusang Exchange has been set to launch it. Vincent Tse, CEO of Hong Kong-based Step Ventures commented on the development: “Proxicoin makes a highly sought-after financial product available to many individual and smaller investors.” Tse also noted that films are an asset class traditionally uncorrelated to capital markets and are sought-after among large hedge funds and banks. Furthermore, TheWrap claims that Proxicoin holders will also be partial owners of a new exchange for financing entertainment projects called Entertainment Stock X (ESX). According to TheWrap, deals for listing over 30 movies are already in place. Kavanaugh commented on the initiative: “This exchange will give ordinary consumers worldwide access to investments in their favorite movies, something they love, in a way that was previously only available to a limited few.” Kavanaugh is also an executive at Warner Brothers, and has produced several films, including “The Social Network,” western “3:10 to Yuma,” and “Mamma Mia!.” As Cointelegraph reported in October last year, U.S. actor and producer Johnny Depp is partnered with crypto-powered social entertainment platform TaTaTu. In November 2018, Dutch rights management company Fintage House has signed a deal with blockchain-based social entertainment platform TaTaTu to start accepting cryptocurrency for rights transactions.
Crypto lender Dharma has begun supporting the peer-to-peer lending of USDC, The Block reported on May 22. Before now, the San Francisco-based company only supported Dai, a stablecoin backed by ether (ETH) that has been regarded as too risky by some investors due to its design, according to Max Bronstein, the company’s business development manager. As USDC is backed by the United States dollar, Dharma hopes that it will be able to attract mainstream investors to its decentralized platform. Bronstein told The Block that adding USDC could enhance the platform’s liquidity, adding: “People who need to get in and out of cryptocurrency easily without getting a lot of price slippage is where we see a lot of USDC demand.” The new service will allow users to borrow USDC as long as they put up 1.5x the value of the loan up as collateral. Loan terms are 90 days, and Dharma claims lenders subsequently receive interest of 8%. Dharma officially launched on April 8, with the aim to enable to the wider public to use crypto in daily life to earn interest, pay bills or take out loans. In February, the company raised $7 million from big investors, including Coinbase Ventures. The USDC was launched by major crypto exchange and wallet Coinbase in partnership with Circle back in December 2018. Both before and since then, more stablecoins have entered the crypto market, with a recent example of Swiss stock exchange SIX’s ongoing development of a stablecoin pegged to the Swiss franc.
Changpeng Zhao, the CEO and founder of major crypto exchange Binance, is seeking damages from venture capital firm Sequoia Capital China for having ostensibly hurt his reputation and unjustly prevented him from raising capital during its now-dismissed legal challenge against him last year. A Binance spokesperson shared the news with Cointelegraph on May 23. Attorneys for Changpeng Zhao — better known in the industry as CZ — filed an application on May 20 with the Hong Kong High Court, seeking an inquiry into whether CZ “sustained any and what damages” as a result of the ex parte injunction order Sequoia obtained against him in December 2017. The injunction, later found to have been improperly obtained, had put a moratorium on any financing deals with other investors until March 1, 2018. CZ’s filing states: “Damages hearing on 25 June 2019 will determine entitlement to and subsequently the scale of damages for (i) the lost chances for fund raising and (ii) damage to reputation.” Should the court determine that Zhao indeed sustained any such damages, the CEO seeks compensation of an unspecified amount — to be determined at the inquiry — from Sequoia. According to the Hong Kong judiciary website, a hearing for the case (HCMP 2770/2017), is currently scheduled to be held on June 25. As reported, the dispute between CZ and the VC firm began in December 2018, when Sequoia obtained an ex parte injunction without notice against the CEO for having allegedly breached an exclusivity agreement during negotiations for a Series A equity financing deal. In April 2018, a deputy judge at the High Court of Hong Kong ruled that the ex parte injunction had been improperly obtained and constituted an abuse of the ex parte procedure process by Sequoia, ordering the firm to compensate the costs of CZ’s legal proceedings. In December 2018, according to a Binance spokesperson, a three-member tribunal at the Hong Kong International Arbitration Center dismissed Sequoia’s claims against Zhao, finding that his talks in alleged breach of exclusivity were in fact for a separate, Series B round financing which was not in competition with Sequoia’s Series A talks.