Crypto Guides, Knowledge & Insights

End of an Era: Grayscale Bitcoin Trust's Premium Turns Negative

The shares of Grayscale Bitcoin Trust (GBTC) are trading at a negative premium to net asset value (NAV) for the first time ever since 2015.　　According to data provided by Chicago-based financial software company YCharts, it is now 0.68 percent cheaper to get exposure to the flagship cryptocurrency via the asset manager than buying the actual thing.　　Image by ycharts.com　　The rest of Grayscales family of products is also witnessing evaporating premiums. The shares of its Ethereum trust (ETHE) are only 5.86 percent more expensive compared to the cryptocurrencys spot prices. For comparison, it soared to a staggering 2,000 percent last June.　　Is the premium game over？　　Until recently, the GBTC shares had always been trading at a premium, which once reached as high as 132.6 percent in March 2017.　　This presented a great arbitrage opportunity for major institutional investors like hedge funds that can sell their shares after a six-month lock-up period and reap significant returns.　　However, Pantera Capitals Dan Morehead says that it is no longer “such a great trade”:　　If you buy it at a 20 percent premium then sell it at 5 percent, its not such a great trade.　　Growing competition　　As reported by U.Today, Grayscales inflows have tapered off significantly, which coincided with the historic

2021-02-25Deep Dive

Traditional Banks get serious about enabling crypto-related services

There has been an ongoing trend among traditional banks that are reportedly hunting for ways to offer digital currencies as services for their customers. The insider sources told media outlet The Telegraph UK that banks are asking for as much data as is needed to begin the integration process. Other financial institutions are also reportedly in the same boat as they consider adding Bitcoin to their list of assets.　　Banks weigh in market risks　　Meanwhile, banks are still weighing potential risk factors before they dive in. This is especially crucial for banks as their direct affiliations with the SEC require extra caution. Other than market volatility which has posed as major risk factors for institutions looking to invest in Bitcoin, money laundering is also a rising factor that new-comers have to analyze.　　Sources from cryptocurrency start-up Elliptic told The Telegraph that asides from government agencies and cryptocurrency exchanges, the FBI is also amongst its customers list, hence the importance of thoroughly understanding the market enough to avoid breaching legal policies.　　Financial Institutions join the race　　The rising interest in the inclusion of digital currencies from financial institutions has surged dramatically over the years. Initially, many of these institutions were collectively bearish on cryptocurrencies due to

2021-02-25Deep Dive

Get Ready for Smart Contracts 2.0: Oraichain Launches New AI-powered Blockchain Network

Oraichain, a leading AI-powered oracle and blockchain ecosystem supplier, announced it is to expand into the Artificial Intelligence services industry with a new, AI-backed blockchain network.　　The expansion is a new milestone on Oraichains journey to becoming an advanced, full-service AI ecosystem with the ability to custom create multiple applications and platforms based upon a trusted, transparent and secure blockchain for numerous industry sectors.　　The new move to launch its blockchain network referred to as Oraichain Mainnet, adds to Oraichains plans to expand its suite of AI-based products and services ecosystem, including an AI Marketplace, Data s roadmap. Once developed, Oraichain will allow for easy and scalable platform adoption through bridges to the most popular Blockchain networks, allowing Oraichain to support more decentralized applications.　　Oraichain has already worked with multiple industry leaders on real-world use cases, including leading Vietnam-based IT software firm, Rikkeisoft and KardiaChain, a public blockchain and AI virtual assistant development platform, Vaiot.　　For case studies and more information on Oraichains unique partnerships and development projects, please visit Oraichain website.　　About Oraichain　　Oraichain is an AI-Powered Oracle and Blockchain Ecosystem. Oraichain data oracle platform aggregates and connects Artificial Intelligence APIs to smart contracts and regular applications. Founded by Dr Chung Dao, Oraichains mission is

2021-02-25Deep Dive

Dubai Private Equity Firm to Invest $4.8 Billion of Bitcoin in Miami

In brief　　IBC Group is creating the Miami 2.0 Blockchain Strategy Foundation.　　Miami Mayor Francis Suarez has been trying to attract cryptocurrency firms and investment.　　Miami Mayor Francis Suarez has been making the rounds promoting his city as a global cryptocurrency hub.　　As it turns out, investors are taking him seriously.　　IBC Group, a Dubai private equity firm that invests in real estate and tech, has earmarked $4.8 billion in Bitcoin for the Magic City. According to a press release last week, IBC will use the 100,000 BTC to establish the Miami 2.0 Blockchain Strategy Foundation and support other projects.　　“Making the largest Bitcoin investment in history is proof of our commitment to assisting cities adopt Blockchain, which we see as the key to enabling widespread adoption,” said IBC Chairman Khurram Shroff.　　The investment in Miami is no coincidence, in more ways than one. In January, Mayor Suarez voiced his plan to make Miami “the most crypto competitive city in the world.” Hes subsequently hired a chief technology officer and forwarded a resolution to the city commission that would facilitate municipal use of Bitcoin.　　The city commissioners voted 4-1 to look for a vendor that could facilitate municipal payments of taxes and fees in cryptocurrency as well as

2021-02-25Deep Dive

DATA SHOWS DECENTRALIZED PERPETUAL SWAP PROTOCOLS ARE “LACKING”

DeFi is a revolutionary concept in which traditional financial products and services can be operated without intermediaries like banks. The emergence of Uniswap created alternatives for traders to access liquidity, and since then theres been an explosion of decentralized exchanges and quite a lot of decentralized perpetual swap protocols have been developed.　　However, data shows that although decentralized perpetual swap protocols should be seeing about $4.7B in trading volume based on Uniswap‘s daily average, combined, they don’t even come close. Heres why decentralized perpetual swap protocols are so currently “lacking” despite a “50x” growth potential claimed by the same data.　　CEX AND DEX PLATFORMS RISE IN TANDEM DURING CRYPTO MARKET UPTREND　　A rising tide lifts all boats, and the latest cryptocurrency market uptrend has brought an increase in trading volume across nearly every type of cryptocurrency exchange in the market. Several platforms have been unable to keep up with the demand.　　According to the latest research from Huobi, there is one type of option that is, unfortunately, “not applicable to many traders” and, as a result, has fallen behind the rest of the space.　　The research begins with a comparison of centralized exchange Huobi Global, which offers spot and derivatives trading under the same roof.

2021-02-25Deep Dive

Bitcoin Has No Intrinsic Value, Asset Is Too Volatile, Says Bank of Korea Governor

Bank of Korea Governor Lee Ju-yeol has said that crypto assets like bitcoin have no intrinsic value – put simply, a measure of what an asset is actually worth.　　● Speaking in the National Assembly on Feb. 23, Lee forecast that bitcoin (BTC) will see increased price swings going forward, the local news agency Yonhap reported.　　● “It is very difficult to predict the price, but its price will be extremely volatile,” said the bank chief in response to a question from a lawmaker who wanted to know whether bitcoins recent bull run, where its price reached a record high above $58,000, was temporary.　　● Lee also spoke about the possible reasons supporting bitcoins recent rally. He believes that rising corporate interest in BTC, as well as concerns over looming excessive inflation due to too much fiat money printing by world governments, has given the crypto a leg up.　　● “These assets saw a steep rise in the shortest period of time. I would say institutional investors assessment of using bitcoins as a hedge could be interpreted as another factor,” he explained.　　● The central bank governor also revealed that the “bank is close to completing our review of designs and relevant technologies regarding bank-controlled

2021-02-25Deep Dive

Will Crypto Affect India’s Financial Stability?

In an interview with CNBC TV, the Governor of the Reserve Bank of India, Shaktikanta Das said that financial stability in the country could be impacted by the rise of Cryptocurrencies. The Indian government is proposing to ban all cryptocurrencies and to deploy its own official digital rupee.　　The RBI Governors concerns are not new. Comments have been made by the bank in the past, stating that Cryptocurrencies were being used for a whole range of illegal activities, including money laundering and terrorist activities.　　Cryptocurrencies were also barred from being supported by banks back in 2018, as they were believed to be used for fraudulent activity, following the Indian demonetisation program to replace 500- and 1000-rupee currency notes.　　As with other major countries across the globe, India is currently developing its own digital currency and will be looking to launch it soon. Governor Das said that the central bank digital currency is “receiving our full attention”.　　China is also getting closer to a full roll-out of its own central bank digital currency, as trials in certain provinces have been ongoing over the previous few months. The Chinese digital yuan will have its own set of problems to deal with as it seeks to take

2021-02-25Deep Dive

What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke

Dogecoin, Elon Musk‘s favorite cryptocurrency, gained a lot of popularity recently. Here’s a comprehensive guide, as well as a few interesting facts you probably didnt know about it.　　Dogecoin has been around since late 2013, starting as a joke initially. The coin has been designed to be a satirical homage to Bitcoin. Besides being a joke and meme coin, Dogecoin wasnt intended to serve any other purpose. Yet, you can use it to transfer value.　　5 Interesting Facts About Dogecoin　　Heres a list of five interesting facts about Dogecoin:　　Dogecoin started as a joke created by Jackson Palmer and Billy Marcus in November 2013. Marcus recently claimed that he sold all of his DOGE in 2015.　　There are 128,264,356,384 DOGE coins in circulation at this moment, compared to 18.5 million bitcoins.　　Dogecoin hosts one of the largest communities in the crypto space.　　In 2014, the Dogecoin community raised $55,000 to sponsor NASCAR driver Josh Wise and covered his car entirely in Dogecoin and Reddit alien images.　　If you wondered which dog is on Dogecoins logo – it is the Shiba Inu, which is a hunting dog breed.　　The DOGE Cult　　The cult surrounding Dogecoin still attracts new users to the world of crypto. Therefore, for many people, it serves as

2021-02-25Deep Dive

How Institutions Will Take Crypto Mainstream

Traditional finance is often viewed as the antithesis of bitcoin and cryptocurrencies. However, there should be, and needs to be, an overlap between the two worlds. The retail market was the driver of the 2017-2018 bull market, but the institutions will be the ones to drive the current one.　　Our financial systems are antiquated, at best. No one knows this better than those working within them. They are in need of a huge overhaul and will receive that in the form of bitcoin and a digital revolution.　　We have seen significant players from the traditional finance sphere starting to recognize this paradigm shift. Morgan Stanley is considering betting on bitcoin with its $150 billion investment arm. BNY Mellon and Deutsche Bank are offering crypto custody. And JPMorgan concedes it will have to be involved in bitcoin. Banks are receiving interest from their clients, seeing the gap in their offering and not being involved is now too much of a risk.　　Satoshi Nakamoto described the Bitcoin network as “A purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.” This seems to explicitly exclude financial institutions from Satoshis

2021-02-25Deep Dive

5 Crypto Prediction Markets to Pay Attention to in 2021

IN BRIEF　　Prediction markets are oftentimes more accurate than general polls or bookmakers odds.　　Prices are determined by all participants activity in a prediction market.　　Were taking a look at Augur, Gnosis, Stox, Polymarket, and Delphy.　　Whether it is a presidential election, the Super Bowl or World Cup final, bitcoin (BTC) price at the end of 2021, people are largely driven by predictions and will always attempt to forecast events.　　What is a prediction market？　　Prediction markets trade the probabilities of an event‘s outcome based on factual information gathered by all the parties involved. Unlike dealing with preset odds, however, prices are determined by all participants’ activity in a prediction market.　　Essentially, the price of “shares” on the prediction market reflects what participants think the outcome will be. The real-life event could be the outcome of an election, tomorrows weather, or some Hollywood event.　　Prediction markets are oftentimes more accurate than general polls or bookmakers‘ odds, because every entity trading on the market make their own research to make an informed trade. You’re more likely to be certain about your choice when theres money on the cards.　　Crypto prediction markets　　As cryptocurrency assets continue becoming mainstream, the underlying blockchain technology provides solutions and fosters a decentralized world. Cryptocurrency prediction markets

2021-02-25Deep Dive

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