Crypto Guides, Knowledge & Insights

Bitcoin Transfer Worth $806M Might Reveal Big Institutional Purchase

Digital-asset traders and analysts were scrambling Tuesday to assess a fresh data point extracted from the Bitcoin blockchain: Some $806 million worth of the cryptocurrency apparently transferred earlier in the day off of the Coinbase exchanges institution-focused unit, Coinbase Pro.　　The jury is out on what it means. It could be that a large investor or several just completed a fresh round of buying and now are taking the bounty off the exchange for long-term holding or other purposes. Or it might be something else more innocuous, such as an internal transfer.　　According to data provided by the blockchain analytics firm CryptoQuant, some 14,666 BTC were moved off the exchange during the early U.S. hours in a small number of transactions.　　The transfer came after bitcoin prices tumbled Monday by the most in a month to about $54,000, a level the market hasnt seen for almost two weeks. By Tuesday, the largest cryptocurrency had steadied and was changing hands around $55,000.　　“The outflow was split into multiple wallets, which could be their hot wallets, representing an internal transfer or custodian wallets for institutions,” Ki Young Ju, CEO of CryptoQuant, told CoinDesk.　　Coinbase Pro outflow　　Source: CryptoQuant　　Coinbase‘s cold wallets for custody are directly integrated with the exchange’s

2021-03-24Deep Dive

Coinbase execs explain why the soon-to-be-public crypto exchange opted against a security token

Coinbases top brass detailed how the crypto exchange unicorn weighed a possible security token on its path to going public -- but ultimately set the idea aside given technological and regulatory constraints.　　The crypto exchange hosted a Reddit ask-me-anything session last week, a move that came as it prepares to go public by way of a direct listing. That listing is expected to take place as soon as early next month.　　Coinbase was asked whether it has plans to provide special share access to Coinbase customers, airdrop shares or provide direct access to share purchases via its platform.　　In response, CFO Alesia Haas wrote that “[t]heres no opportunity to invest in the company at this time, prior to that direct listing.”　　Far more intriguing in the answer was an extended disclosure of Coinbases exploration of a security token. Security tokens are digital representations of stocks and other types of securities. Theyve been advanced as a blockchain use case in the finance space by companies like tZERO and INX, both of which have created security tokens of their own as a means to obtain funding from investors.　　Haas noted that “we wanted to be able to share with all investors and all the public actually how

2021-03-24Deep Dive

BTC is not Equivalent to Fiat Yet

Background　　BTC is considered to be the new favorite of investors in the financial markets across the globe. It increased in values rapidly from $5,000 in March last year to an all-time high of $40,000 earlier this year. Market analysts and the more optimistic participants in the market believe that this rally will go on for a long term, carrying the BTC price to even $100,000 level or beyond it. However, despite all these positives, BTC has still not reached the level of fiat or become equivalent to the dollar as yet.　　The faith and trust of people in the government fiat currencies has been falling down in recent years, and as a result, people such as investors and traders have been very keen in investing in crypto and other unconventional financial assets. Due to this decrease in demand and decreased reliability of fiat among people, central banks across the world, and The Federal Reserve in the United States have greatly reduced interest rates and have been generating enormous quantities of fiat money to finance coronavirus relief programs and in an attempt to provide financial relief and support to the suffering economies.　　After an increased adoption from several renowned institutions and companies

2021-03-24Deep Dive

Robinhood files SEC paperwork for public offering

Robinhood Markets Inc., a popular trading app that recently expanded its cryptocurrency business, has filed paperwork with the United States Securities and Exchange Commission, or SEC, to go public.　　The company confirmed Tuesday that it had confidentially submitted a draft registration statement on Form S-1 with the SEC relating to the proposed public offering of its common stock. Form S-1 requires companies to provide more detailed information on the planned use of capital proceeds., as well as a brief prospectus on the proposed security.　　While Robinhood didnt specify when the IPO would take place, it confirmed that a public offering would be pursued “after the SEC contemplates its review process, subject o market and other conditions.”　　Speculation about a Robinhood IPO has circulated for months amid news that the company had lined up a team of advisers to guide it through the listing process. In October 2020, CEO and co-founder Vlad Tenev told CNBC that he was “not in a rush” to push a public listing because the company was well funded.　　Public opinion of Robinhood soured earlier this year – and may have stalled the IPO process – after the company decided to halt trading of GameStop. An anonymous survey conducted in January

2021-03-24Deep Dive

Financial Sector Players Call for Improved KYC Regulations

Today, in a Bank for International Settlements (BIS) Innovation Summit 2021 session held online and named “Banking on a new digital ecosystem – new opportunities, business models and regulation,” Noah Pepper, the Irish-American financial services and payments company Stripes Business Lead for the Asia-Pacific region, called on regulators and politicians to “boost financial inclusion with more seamless, but more secure KYC.”　　He added that “more clarity” of legal networks and frameworks and more regulatory sandboxes “would drive innovation and speed of development” for the industry.　　However, Pepper added that in the case of matters such as data-related regulations, it was safe to assume that larger companies would benefit from more stringent regulations, but that these would ultimately hinder smaller players.　　His thoughts were echoed by Kahina van Dyke, the Global Head of Digital Channels and Client Data Analytics at the banking giant Standard Chartered and a former Ripple executive.　　Van Dyke hinted that she agreed with Peppers assessment of the importance of KYC development and added that in order “to innovate,” the industry “needs co-creation systems,” as well as a “cultural mindset” and a “collaborative ecosystem.”　　She claimed that anyone seeking to exercise control over the digital economy would need to “collaborate to control,” and

2021-03-24Deep Dive

CBDCs do not threaten Bitcoin — their success might depend on it

A little less than two years ago, the International Monetary Fund (IMF) published a research paper on the rise of digital money. Much of the text dealt with how Central Banks could mitigate potential risks that digital money and in particular stablecoins posed to the existing system.　　At the time, the papers inclusion of Bitcoin as public money seemed relevant, but the currency itself was actually not given too much attention and deemed to be of little significance.　　Much has changed since then. And yet, the discussion around Central Bank Digital Currencies (CBDCs) remains limited to payment rails, the programmability of money and the promise of financial inclusion, without ample consideration of how public confidence comes into play.　　This might lead some to believe that CBDCs could render Bitcoin redundant. However, when we shift our focus from pragmatics to a conversation about trust, ownership and agency, it becomes clear that CBDCs do not pose a threat to Bitcoin. Their success might even depend on it.　　CBDCs reconsidered　　For most crypto enthusiasts, CBDCs are antithetical to Bitcoin. Issued by a Central Bank on a permissioned blockchain, CBDCs operate within a skewed power-structure and are therefore unlikely to offer a monetary policy as reliable and predictable as

2021-03-24Deep Dive

Can Decentralized Stablecoins Stabilize?

Decentralized finance (DeFi) idealists want to create perfectly free financial ecosystems that cant be subverted by governments, corporations or regulators. They also want their decentralized nirvana to be equipped with stablecoins so users can be protected from price craziness.　　Therein lies the contradiction.　　Are decentralized anarchic systems, those that have no link to existing centralized institutions, capable of creating stability？ Or are they too unanchored to generate the traction necessary for a stablecoin to be, well, stable？　　A new wave of stablecoin architects thinks its possible. They want to create money that is not only stable but also avoids relying on the authorities that underpin the dollar system.　　Whether these new experiments work is another question.　　USD coin domination　　Before I describe what these new experiments are, let me show what problem they are trying to solve.　　DeFi refers to a set of financial applications built on blockchains using smart contracts, unstoppable and transparent bits of computer code. The biggest DeFi community is on the Ethereum blockchain, but other competing blockchains such as Binance Smart Chain, Terra and Tron are also trying to nurture a DeFi ecosystem.　　A stable money is important to people who participate in financial transactions. Volatile assets like bitcoin and ethereum don‘t cut it.

2021-03-24Deep Dive

Will Coinbase and Binance Relist XRP? Why XRP price is Surging?

The US SEC lawsuit against Ripple Labs and two of its executives are currently playing out in court, and after the first two virtual hearings, it seems SEC might not have as strong of a case as many believed in the beginning. When SEC first filed its lawsuit against Ripple back in December last year, it had a direct impact on XRP as many US-based crypto platforms started delisting the third-largest cryptocurrency at that time.　　Many pundits called it a virtual end for XRP in the US and the end of the road for Ripple, however, after the first two court hearings several revelations made by Ripples legal counsel have turned the case on its head in their favor. During the first hearing, Ripple counsel revealed that SEC ignored queries by numerous exchanges on the status of XRP and allowed them to trade XRP without any warnings. The second hearing revealed even more interesting facts, where the judge observed that　　“My understanding of XRP is that not only does it have a currency value but it also has a utility and that utility distinguishes it from Bitcoin and Ether.”　　SECs Comments During the Trial Supposedly Makes XRP Viable For Relisting　　The second breakthrough came

2021-03-24Deep Dive

Bridging CeFi and DeFi: Liquidity-as-a-Service Coming to Orbs Blockchain

Attempting to improve access to DeFi interest-bearing accounts, including for individuals, businesses, professional investors, and corporations, Orbs is introducing Liquidity Nexus to act as a bridge between centralized and decentralized finance.　　This Liquidity-as-a-Service solution looks to make DeFi applications more available and less risky.　　Liquidity Nexus will provide an intuitive platform thats simple to operate as any traditional website. The DeFi ecosystem shows massive potential and continues to expand as more value is injected, but is inherently limited due to the high barrier to entry. This leaves a class of larger, more risk-averse professional investors on the sidelines, something that Orbs looks to address.　　Decentralized Infrastructure With Centralized Access　　Through the utilization of Liquidity Nexus, any investor can deposit stable assets to the platform to earn yield. Once the funds are transferred, they will be deployed to yield generating applications on Ethereum or Binance Smart Chain, boosting the APY of the depositor.　　Unlike traditional investment or savings platforms that usually require a waiting period before funds become accessible, investors can withdraw their funds and interest at any time.　　Additionally, other projects will also be able to integrate the smart contracts of Liquidity Nexus, essentially turning it into a Liquidity-as-a-Service protocol.　　Further Considerations　　The protocol also looks to cater

2021-03-24Deep Dive

South Korea’s Largest Social Gaming App to Mint Low-Carbon NFTs for Millions of Users

South Koreas largest social gaming app, GameTalkTalk, has begun leveraging blockchain platform Enjin for the creation of low-carbon, non-fungible tokens (NFT).　　According to a press release shared with CoinDesk, the social gaming company behind the app, Ludena Protocol, is attempting to attract new users by tokenizing fashion, furniture and pets.　　NFTs have been a controversial topic as of late due to their large carbon footprint created via the process of creating consensus in a proof-of-work mechanism.　　By using Enjins interoperable bridging network and scaling solution, JumpNet, Enjin and Ludena say they can reduce energy consumption through a relatively new consensus mechanism.　　The mechanism, known as proof-of-authority (PoA), refers to a solely permissioned state where only invited parties can participate as nodes on a private blockchain.　　Using PoA, the companies say they can reduce power consumption by as much as 99.98%, when compared with other networks such as Ethereum or Bitcoin.　　NFTs: A tax on users and the environment　　Simon Kertonegoro, vice-president of Developer Success at Enjin, told CoinDesk via Telegram the cost of minting NFTs has been a tax on both the user and the environment.　　With over three million users, GameTalkTalk has worked alongside major companies such as Blizzard Entertainment, SEGA and Nexon.　　“We believe this is an

2021-03-24Deep Dive

...

677679

...

742