Crypto Guides, Knowledge & Insights

When Will The SEC Vs. Ripple Lawsuit End?

Cryptocurrencies were created to facilitate faster payments between users and establish a network that is not dependent on a centralized entity. Although decentralization is the foundational pillar of cryptocurrencies, blockchain technology has become utilized in financial markets to enable quicker and easier payments.　　Despite its centralized nature, Ripple has previously divided the crypto community. However, with the ongoing US Securities and Exchange Commission (SEC) lawsuit, XRP holders and blockchain devotees have created a front against harsh regulatory measures.　　XRP, the native token of Ripple Labs, facilitates faster and more economical transfers between institutions. At the end of 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company and its co-founders of failing to register their native XRP token as a security.　　Bullish Momentum On XRP　　The case between Ripple Labs and the SEC continues to make headlines four months after the regulator initiated the lawsuit at the end of 2020. Despite the ongoing legal action and MoneyGram, Ripples leading partner, halting their collaboration due to the lawsuit, the price of XRP generated incredible gains in the past month.　　Ripple moved by nearly 300% in April, reaching a new all-time high. The cryptocurrency has catapulted into the top five coins by market cap once

2021-04-21Deep Dive

Consumers Will Shape the Future of Stablecoins, Here’s How

IN BRIEF　　Stablecoins have expanded significantly arriving in 2014.　　In the future, there could be even more from personal coins to legal tender.　　Consumer choice will drive this stablecoin development.　　Stablecoins exploded onto the scene in 2014. As stablecoins develop, there is one factor beind their growth we have not yet explored: consumer choice.　　The rise of these coins began with BitUSD (BITUSD) and Tether (USDT). Then it continued to grow with USDC, Dai (DAI), and others.　　We have discussed the best backing for stablecoins (commodity, fiat, crypto, algorithmic, basket), types of stablecoins (retail and wholesale), and the legal status of stablecoins (current money or payment mechanism).　　The idea of consumer choice underlies stablecoin development to date, but it has not received the attention it deserves. Especially since it will drive the expansion of the stablecoin universe.　　Consumer choice is not new　　Consumer preference in the development of money is not a new idea.　　In the early 1800s, a United States consumer could choose which private banknote they wanted to use based on their preferences.　　They could use money issued by a big, distant bank because of its security and widespread acceptance of its notes. However, they could also use the notes issued by their local bank because they wanted to

2021-04-21Deep Dive

Ripple May Put Competitive Pressure on Traditional Banking System, India Fears

Ernst & Young has created a report for Competition Commission of India (CCI) about the blockchain technology, describing its weak and strong points and its potential for adoption in various spheres.　　It mentions Ripple as a potential competitor to the traditional banking system globally.　　Ripple solutions to compete with the conventional banking system: Ernst & Young　　The report points out that blockchain (DLT) is a technology that promises potential benefits in many spheres, such as healthcare, insurance, government, BFSI, HR management, etc.　　However, the report states that once blockchain is integrated DLT-based solutions will start competing with those that provide similar services but not DLT-based. This competition has already started in the sphere of cross-border payments.　　Such payments made on blockchain platforms are faster, cheaper and do not require prefunding. As a particular example, the report mentions the San-Francisco-based Ripple blockchain behemoth that uses XRP for providing remittances and cross-border payments.　　“An example could be the market for providing cross-border payments where traditional banks may have to compete with solutions such as Ripple, which is a blockchain concept-based tool that enables users to make cross-border payments in various currencies.”　　The authors of the report particularly emphasize:　　“Ripple may put competitive pressure on the traditional banking system given that

2021-04-20Deep Dive

WSJ: Confusion by SEC Creates ‘Danger’ for Investors

The Wall Street Journal editorial board criticized the US Securities and Exchange Commission (SEC) for causing “confusion” in its lawsuit with Ripple Labs. They said the regulators approach was “creating danger for currency developers and retail investors.”　　The Wall Street Journal (WSJ) highlighted that cryptocurrencies were “a new force in financial markets.” They singled out the listing of Coinbase on the Nasdaq as a primary indicator of this trend. However, the WSJ criticized the SEC in their approach to regulating cryptocurrencies, citing their ongoing lawsuit with Ripple Labs.　　SEC & XRP　　In December 2020, the SEC officially charged Ripple Labs and two of its executives with selling unregistered securities. The regulator claimed that Christian Larsen and Brad Garlinghouse profited off the sale of Ripple native token XRP. Regulators claimed that XRP qualified as a security because its developers promoted it and profited from it.　　However, the tide may be turning in favor of Ripple Labs. In a recent ruling, Magistrate Judge Sarah Netburn said that XRP had value as a utility and a currency. From her perspective, this distinguishes XRP from being a security. Additionally, Ripple Labs request to reject SEC subpoenas requesting personal documents of the Ripple executives was successful.　　In turn, Judge Netburn

2021-04-20Deep Dive

Crypto payments banned in Turkey — Is this just the beginning?

Buying something with Bitcoin (BTC) in Turkey will soon be illegal, and the topic of crypto payments has become a political debate since the Central Bank of the Republic of Turkeys April 16 announcement that it will forbid the use of cryptocurrency as a payment method. The regulation, which will go into effect on April 30, also bans the use of digital wallet providers as fiat on-ramps for crypto exchanges.　　Cointelegraph Turkey reached out to local blockchain and crypto industry participants for commentary. Ahmet Usta, chief editor of Blockchain Turkey Platform and co-author of Blockchain 101, described Turkeys first crypto regulation as a “how-not-to-do” rather than a “how-to.” He told Cointelegraph Turkey that the central bank will prohibit two uses:　　“The first one is to use crypto to pay for anything. The second one is specifically for payments providers and e-money companies. It prohibits providing crypto-asset trading, storage, transfer and export services and fund transfers made on these platforms.”　　The negative tone of the announcement damages Turkeys international reputation and reliability, Usta added, explaining: “The positive takeaway of the announcement is the definition of crypto assets within a legal framework for the first time.” Crypto assets are now treated as “intangible assets that

2021-04-20Deep Dive

70% of Central Banks Are Nowhere Near Launching CBDCs: PwC Report

Despite the massive interest from central banks for CBDCs, nearly 70% of the projects are running only pilot programs and are far away from an actual launch.　　The Bahamas and Cambodia are the leading countries in a ranking listed by PwC while the biggest economy in Asia – China lines up third.　　CBDCs Are Not Here Yet　　Central bank digital currencies (CBDCs) have been a hot topic in the past few years. A paper released by the Bank of International Settlements last year informed that at least 80% of such organizations were working on launching a digital version of their respective fiat currency.　　However, it turns out that the majority are still far away from releasing an end-product. A recent PwC report cited by Bloomberg showed that 70% are in pilot stages only.　　On the other hand, roughly 23% of retail projects have reached the implementation stage.　　According to the research, more than 88% of CBDC projects at the pilot or production phase use blockchain as the underlying technology. This is because it allows for secure transfer of ownership, transparent audit trails, and increasing interoperability with different digital assets.　　PwC further asserted that interbank or wholesale applications are more common for advanced economies while retail projects are

2021-04-20Deep Dive

Goldman Sachs Adds Bitcoin to its Year-to-Date Returns Report

Goldman Sachs, one of the biggest US banks and former bitcoin critique, has added the primary cryptocurrency to its year-to-date asset returns report. Interestingly, BTC occupies the first spot with over 100% early returns as the next assets are far behind.　　Goldman Sachs Adds BTC to Returns Report　　Founded in 1869 in New York, Goldman Sachs is a large multinational investment bank, which had a negative stance on the cryptocurrency industry for the majority of the last few years.　　However, the bank has apparently started to change its mind, on bitcoin in particular, and the latest evidence came from its Global Investment Research department.　　As seen in the above graph, the giant investment bank has included the cryptocurrency in its year-to-date absolute and risk-adjusted returns. Bitcoin leads in both.　　The first part shows BTC‘s total yearly returns, which, despite yesterday’s market crash, are still above 100%. Crude Oil is next with 31%, while the S&P and Nasdaq 100 are with 12% and 9%, respectively.　　When it comes down to the risk-adjusted return, meaning the raw profit taking into account the degree of risk the asset contains, BTC leads again with 2.5, followed by Russel 1000 Value.　　 Why Is This News Big？　　As briefly mentioned above, Goldman was

2021-04-20Deep Dive

ODDZ listing on AscendEX

AscendEX, formerly BitMax, an industry-leading digital asset trading platform built by Wall Street quant trading veterans, has announced the listing of the Oddz Protocol Token (ODDZ) under the pair USDT/ODDZ on Apr 19 at 1:00 p.m. UTC.　　Oddz Finance is the worlds first on-chain option trading platform built on the Binance Smart Chain, Polkadot, and Ethereum Blockchains with a built-in oracle solution. Its distinguishing features include instant trades, interoperable options trades, transparent premium discovery methods, and custom option trading techniques.　　The Oddz Protocol‘s native token is ODDZ, which is designed to incentivize and promote the community’s active participation. The ODDZ tokens represent power for users and are central to the incentive structure and governance of the Oddz Protocol.　　The ODDZ token holders represent an integral part of the Oddz ecosystem. They vote on various proposals for the protocols growth. Moreover, the primary motive of Dapps in the ecosystem is to fuel the decentralization of authority; thus, the community holds a substantial role in driving the development and use of Dapps. Platform users can also employ ODDZ tokens to facilitate transactions seamlessly.　　The Oddz platform has a few key product features available to users. Users can stake ODDZ tokens on the Oddz platform to earn

2021-04-20Deep Dive

NFTb launches NFT marketplace focused on environmental sustainability

The new marketplace is said to provide a more affordable option for artists launching digital artwork and other rare collectibles. It also lets them donate a portion of their proceeds to charities.　　NFTb, a nonfungible token platform built on the Binance Smart Chain, is launching a new version of its marketplace focused on supporting social causes and providing artists with more affordable listing options.　　The new marketplace connects artists and leading charities, allowing anyone to auction their artwork at an affordable rate and donate a portion of their proceeds towards a charity of their choosing. NFTb claims over 120 artists have already joined the waitlist.　　Sia Mohajer, an executive with NFTb, said many artists are concerned about the environmental impact of their work and that current marketplaces dont provide any recourse for mitigating those risks. She explained:　　“We have found that many artists who are not familiar with NFTs are extremely concerned about the environmental impacts of their activities. Weve built a platform to help artists ensure that the production of their work is environmentally sustainable, and can support the social causes that matter to them.”　　NFTb recently announced the completion of a $200,000 seed funding round in support of its marketplace. Its backers include

2021-04-20Deep Dive

Online Retail Giant Newegg Starts Accepting Dogecoin

After embracing Bitcoin in 2014, Newegg has also started accepting Dogecoin.　　Electronics-focused online retailer Newegg has started accepting Dogecoin (DOGE) as an official payment method with the help of BitPay, according to its Apr. 20 press release.　　Prior to the official announcement, the company started teasing the news on Twitter, asking Tesla CEO Elon Musk if he would shop with them if they added his favorite cryptocurrency.　　The U.S.-based e-retailer claims that the announcement is meant to celebrate Doge Day, a made-up holiday celebrated on Apr. 20 when the joke coin is supposed to reach $1.　　Andrew Cho, Neweggs senior brand success manager, claims that the addition of Dogecoin reflects “the excitement and momentum” surrounding crypto:　　“The excitement and momentum around cryptocurrency are undeniable, and the recent surge in Dogecoin value underscores the need to make it easier for customers to make purchases with this popular cryptocurrency. ”　　Newegg.com allowed its customers to shop with Bitcoin back in 2014, becoming one of the first major retailers in the world to embrace the new asset class. Dogecoin is only the second cryptocurrency accepted by the Los Angeles-based company.　　Dogecoins growing mainstream adoption　　Dogecoins merchant adoption appears to be growing in lockstep with its price. The NBAs Dallas Mavericks started

2021-04-20Deep Dive

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