Crypto Guides, Knowledge & Insights

DeFi lending platform Aave reveals 'permissioned pool' for institutions

Designed for institutional investors, the lending pool will feature KYC and AML restrictions.　　The banks are out of the bag: In a Tweet on Wednesday, Stani Kulechov, co-founder of decentralized finance money market protocol Aave, revealed that the Aave protocol has built a “private pool” for institutions to “practice” before getting involved with the DeFi ecosystem.　　Earlier on Wednesday, a Twitter user posted an angry tweet directed at Aaves official Twitter account, noting that his address had been “blacklisted” due to Anti-Money Laundering requirements:　　Kulechov himself responded to the tweet, saying first that there had been a mistake and that “The text is actually incorrect and relates to another pool were testing out,” before later revealing the clientele the pool was designed for:　　In an interview with Cointelegraph, Aaves head of institutional business development, Ajit Tripathi, confirmed that the protocol had designed a permissioned pool — the “private pool” description in Kulechovs Tweet was a misnomer in that the pool will be on public chains, but have permissioned access — specifically for institutions. He characterized the purpose of the pool as educational.　　“Its a great solution to promote collaborative learning across cefi and defi,” Tripathi said.　　He noted that the permissioned test pool is designed to

2021-05-13Deep Dive

We Will be 'Flooded' by Bitcoin ETFs: Gibraltar Finance Minister

In brief　　The world will be “flooded” with Bitcoin ETFs, should the U.S. SEC approve one, according to Gibraltars Finance Minister.　　Albert Isola raised concerns about the lack of supervisory measures for administering the funds.　　Albert Isola, Gibraltars Minister for Digital and Financial Services, thinks we will be “flooded” by Bitcoin ETFs if the U.S. Securities and Exchange Commission (SEC) approves the first exchange-traded fund for digital assets—and he expects it to happen this year.　　“I think and I hope it does happen this year,” Isola said, speaking to the Decrypt Daily podcast. But he raised concerns about the lack of supervisory measures for the aftermath of an ETF approval.　　“The process is clear in terms of licensing, but what about supervision afterwards？” he said. “Whos going to be responsible？ What are the criteria？ What [is] the US looking for in terms of how these vehicles are managed [and] marketed in the whole environment around them？”　　A U.S. approval will have a big impact on policy in the rest of the world, he noted.　　As of last month, the SEC had received no less than eight Bitcoin ETF applications, from high-profile actors such as VanEck, which already runs many ETFs across other sectors.　　The SEC has pushed its

2021-05-13Deep Dive

Bitcoin Can Be a ‘Highly Speculative’ Instrument According to the SEC

The United States Securities and Exchange Commission (SEC) alerted mutual fund investors about the risks in the Bitcoin futures market. The US agency even described the cryptocurrency as a “highly speculative” asset.　　Dont Ignore the Risks　　The price of the primary cryptocurrency skyrocketed during 2020 and continued its rally in the first months of 2021 reaching an ATH of around $65,000 in mid-April.　　Consequently, many individuals and mutual fund investors took the opportunity to jump on the Bitcoin bandwagon and allocate their capital to it. However, the US SEC warned market participants to be especially careful when doing so.　　The US watchdog advised that even though the digital asset has become very popular and tempting for investors, it still hides its risks as it is volatile and traded in a poorly regulated market. SEC went further calling Bitcoin a “highly speculative” instrument.　　The agency reminded of its primary mission to protect investors and enable fair and efficient markets. It also alarmed that every individual willing to trade with the cryptocurrency ought to investigate thoroughly the matter and keep in mind its risky nature:　　“Protecting investors and assessing the regulatory compliance of these funds is a top priority for staff.”　　Additionally, the SEC plans to explore whether the

2021-05-13Deep Dive

Launch of Bitcoin ETFs in the U.S. could see further delays, here’s why

Several industry leaders say recent comments by US Securities and Exchange Commission (SEC) chairman Gary Gensler have delayed the possible launch of a Bitcoin exchange-traded fund (ETF) in the country, financial industry outlet Bloomberg reported Tuesday.　　Not coming soon　　ETFs are regulated financial instruments that track the value of an underlying asset and provide asset exposure to investors. Such products have been long-sought in the US: Over nine companies waiting on the sidelines with their ETF products in the hopes of acceptance.　　But Gensler‘s comments last week came as a shock to some, who otherwise expected the so-termed ’crypto-friendly‘ chairman to take swift action in the regard. The chairman said cryptocurrencies “could benefit from greater investor protection” and that all crypto exchanges be brought under the SEC’s regulatory outlook.　　“The SEC has made their priorities clear, and vetting crypto ETFs is not one of them,” said Ben Johnson, Morningstar Inc.s global director of ETF research.　　He added, “Given that the SEC has bigger fish to fry, and taking Gensler‘s recent remarks regarding crypto ETFs into account, I think the odds we’ll see a Bitcoin ETF approved in 2021 are very low.”　　Why no Bitcoin ETF？　　The reasons given by US regulators for the rejection are the same

2021-05-12Deep Dive

Billionaire Druckenmiller says ledger-based system could replace USD worldwide

Billionaire hedge fund manager Stanley Druckenmiller has forecast the possibility of a crypto-derived ledger system overtaking the U.S. dollar as a global reserve currency.　　The hedge fund boss noted that if there were to be a U.S. dollar replacement it “would be some kind of ledger system invented by some kids from MIT or Stanford or some other engineering school that hasnt even happened yet, that can replace the dollar worldwide.”　　He made the comments in an interview with CNBCs Squawk Box. Druckenmiller noted that crypto is often promoted as a hedge against inflation, which has become more relevant of late:　　“Well, you probably dont remember this joke, but five or six years ago, I said that that crypto was a solution in search of a problem. And thats why I didnt play crypto the first wave because we already have the dollar. What do we need to look for？”　　But he went on to add that ongoing financial stimulus was an issue: “Well, the problem has been clearly identified. Its Jerome Powell and the rest of the world, central bankers. Theres a lack of trust. So sort of groping for an answer for a central case.”　　Druckenmiller reportedly invested in Bitcoin earlier this year

2021-05-12Deep Dive

NYDIG Survey: 46 Million Americans Invested in Bitcoin

Investor participation in the crypto market has been growing at an unprecedented rate over the last year! As a result, crypto exchange and trading platforms have been enjoying a massive rush of investors with trading volumes spiking to new highs.　　The Bitcoin-focused digital asset manager – New York Digital Investment Group (NYDIG) – recently published a new survey that shows that a massive 46 million Americans are invested in Bitcoin. This is nearly 17% of the adult U.S. population, reports Newsweek.　　The numbers have surely escalated faster as big players from Wall street join the Bitcoin bandwagon over the last few months. The survey includes a national sample of 1050 U.S. crypto investors with a minimum of $50,000 in annual income.　　Including Bitcoin In Personal Finance and Insurance Annuities　　The interesting this about the survey result was that a large number of respondents were keen enough to have Bitcoin (BTC) as part of their personal financial plans, including insurance! A massive 75% of the respondents said that they would be keen on learning about Bitcoin life insurance and Bitcoin annuities. As the Newsweek publication reports:　　“The survey found great interest in Bitcoin. About half the respondents said they want to receive some or all of

2021-05-12Deep Dive

TaxBit to Help IRS Ensure Crypto Traders Report on Taxes Properly

TaxBit will be tasked with aggregating transaction data to ensure the figures on both sides match.　　The Internal Revenue Service (IRS) has officially announced a partnering with TaxBit to provide data analysis and tax calculation support for taxpayers who own crypto.　　CEO and Co-Founder of TaxBit, Austin Woodward, said that the move “indicates regulators are embracing the asset class, but doing so in a way that ensures a straightforward approach to conform with existing regulations.” He believes this is an important step for the enablement of widespread crypto adoption.　　The Utah-based crypto tax software company announced a one-year contract to provide auditing services for crypto transactions as requested by the IRS. Their main objective is to help the IRS to verify that high-volume crypto traders are reporting on their taxes properly.　　TaxBits director of government relations, Seth Wilks, explained that the company will help the agency understand the data:　　“We‘ll be providing data analysis and support and calculations for the IRS to help them really get to the right answer. [We’ll fill] some of the gaps in tools that just don‘t exist right now within their own ecosystem, and so we’re coming in to make sure that they are fully understanding the data.”　　 High-net-worth

2021-05-12Deep Dive

“Dogecoin Seems Like a Prescription for Disaster”: Bain Capital’s Steve Pagliuca

In his May 12 interview with Bloomberg, Steve Pagliuca, co-chairman of private equity firm Bain Capital, called Dogecoin “a prescription for disaster”:　　“Obviously, it could be a lot of fun to buy a dollar or two of Dogecoin, but I certainly wouldnt bet my savings on that.”　　The meme cryptocurrency is currency trading in the green after Tesla CEO Elon Musk ran a Twitter poll to find out whether the leading e-car maker should accept it as a form of payment.　　The poll has attracted 3.8 million votes, with the majority of Musks followers willing to see the meme coin as a new payment method.　　DOGE is still up over 11,000 percent despite a significant correction that occurred during the billionaires “Saturday Night Live” hosting debut.　　Pagliuca also has a Bitcoin warning 　　Pagliuca also cannot wrap his head around Bitcoin being a “viable currency.”　　That said, he does see it as a better alternative to gold because its portable and divisible:　　“Bitcoin is actually a more efficient store of value. You can transfer, its dividable. The blockchain technology is fantastic, but I think it has a long way to go.”　　If Bitcoin does go as far as becoming a currency, he predicts that governments will react to this

2021-05-12Deep Dive

Blockchain games have struggled to compete with traditional titles… until now

An established crypto project has revealed how it plans to ensure blockchain games are as popular and playable as old-fashioned titles that dominate the market.　　Blockchain games are struggling to compete with traditional titles on consoles and smartphones, a crypto project has said.　　PlayDapp says big improvements are needed to ensure that blockchain-based games tackle problems that have long persisted in this multibillion-dollar industry — all while giving players an immersive experience that‘s unlike anything they’ve seen before.　　Driven by team members who have decades of experience in gaming and IT, PlayDapp aims to ensure that in-game items can be traded on second-hand marketplaces with ease, and prized assets can easily be used across multiple games.　　This concept has already been put into practice. Nonfungible tokens earned through CryptoDozer, the platforms flagship game, are immediately recognized in its sister title DozerBird — allowing players to unlock additional stats and benefits.　　Executives say their priority is enriching non-crypto games with NFT features, meaning that players can enjoy true ownership of their items.　　A game-agnostic approach　　PlayDapp says that it has championed a “game-agnostic” approach — meaning that the NFTs unlocked on its platform can be moved from title to title with ease.　　This focus on interoperability means that players

2021-05-12Deep Dive

Let The Bidding Begin: The First NFT Patent?

We‘ve seen a wide variety of NFT releases this year. From trading cards, to immersive 3D graphic designs. From realistic still images, to real-life engagement opportunities with star meet & greets. One thing we seemingly haven’t seen yet, until now, is patents. However, aptly noted today on Twitter by sports, entertainment, and IP lawyer and University of Florida professor Darren Heitner, is what seems to be the very first patent auctioned off as an NFT.　　What It Is, And What It Means　　The auction was originally listed in recent weeks by True Return Systems LLC and D. Tiller Law PLLC. The patent (US Patent #10,025,797) is centered around providing an “elegant solution for maintaining blockchain‘s foundational benefits while expanding applications, easing combination of ’on chain‘ and ’off chain data storage”. Additionally, the patent cites potential application across a variety of industries, including health care, financial services, data sciences, and more.　　The patent is currently listed for 2,250 ETH (approx $9M USD at time of writing) on OpenSea, with no bidders at the time of writing.　　Join The Club　　The road doesn‘t seem to stop here, either. It was around the same time that reports were released that IBM would be working with IP specialists IPwe

2021-05-12Deep Dive

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