In Echo of 2008, Fed Pledges $1.5 Trillion Injection to Aid Reeling Markets

U.S. central bankers pledged Thursday to inject some $1.5 trillion into the financial system in an effort to calm panicky markets after the spreading coronavirus triggered steep price declines on everything from stocks to bitcoin. The move by the Federal Reserve Bank of New York comes as investors in traditional Wall Street markets have rushed to snap up U.S. Treasury bonds, historically viewed as a “safe haven” asset in times of turmoil. The flight to safety has pushed down the 10-year note’s yield, which moves in the opposite direction from…

US Court Fines ICOBox $16M for Securities Violation in SEC Case

A federal court has ordered ICOBox to pay a $16 million penalty to the Securities and Exchange Commission’s (SEC) for violating U.S. securities law. On March 5, Judge Dale S. Fischer of the District Court for the Central District of California granted the SEC’s motion for default judgment against the ICO-as-a-service platform and founder and CEO Nikolay Evdokimov. The SEC first brought charges against ICOBox in September 2019, accusing the company of hosting an unregistered securities sale. The regulator also accused the company of acting as an unlicensed securities broker…

Bitcoin Price Is Now Up Just 9% This Year

View Bitcoin’s short-term outlook remains bearish with prices trading well below key resistance at $8,460. A move below Tuesday’s low of $7,734 would likely encourage sellers, yielding deeper losses toward $7,100. A move above $8,158 (Tuesday’s high) would confirm temporary seller exhaustion signaled on the daily chart and allow a stronger bounce to $8,460. Bitcoin’s (BTC) recent price drop has erased a major portion of its year-to-date gains.  The top cryptocurrency by market value is currently trading near $7,830 – up just 9.3 percent from the year’s opening price of…

Paradigm Labs Shuts Down, Says It Was ‘Too Early’ for DeFi Boom

Paradigm Labs is closing down after concluding that interest in decentralized finance (DeFi) came too late in the company’s life cycle. Based in California, Paradigm Labs wanted to develop liquidity solutions for the DeFi space. It had a promising start in 2018 when it raised $1 million in an oversubscribed seed round led by Polychain Capital, with additional placements from Dragonfly Capital and Chapter One. But in a blog post Tuesday, founder and CEO Liam Kovatch said:”Our team has come to the decision that without significant product-market fit and limited…

YouTube Temporarily Bans Two Popular Crypto Channels Claiming Policy Breach

YouTube has deleted videos and temporarily banned the accounts of two more cryptocurrency enthusiasts citing a breach in company policy. Earlier this week, cryptocurrency educator “Ivan on Tech” and crypto news reporter “The Moon” took to Twitter to express their anger over being censored for what they believed were overreactions by the video sharing platform. YouTube had delivered a strike notice to both accounts, which essentially restricts the ability for content creators to upload videos, live streams or stories for a set period, based on the number of strikes received…

What the Oil Market Says About Bitcoin’s ‘Safe Haven’ Status

Monday’s historic financial tumult reached beyond stocks, sinking commodities and even bitcoin markets. “I don’t think any asset is safe right now – except cash, U.S. dollars,” said Ali Khedery, formerly Exxon’s senior Middle East advisor and now CEO of U.S.-based strategy firm Dragoman Ventures. While bitcoin prices dropped nearly 10 percent over the weekend, Saudi Arabia slashed its export oil prices when Russia refused to support an Organization of the Petroleum Exporting Countries (OPEC) effort to reduce oil production. Coronavirus quarantines mean fewer cars on the road, economic slowdown…

Crypto Lender Babel Hits $380M in Outstanding Loans

Beijing-based cryptocurrency lending startup Babel Finance said it has reached a record of $380 million in outstanding loans as of February. Flex Yang, co-founder of Babel Finance, said on Thursday the firm’s outstanding loans have grown from $52 million-worth of USDT as of Q1 2019 to $289 million as of the end of last year, reflecting the increasing market demand in the crypto lending business amid bitcoin’s price surge since April last year. Yang said the firm has recently closed a Pre-A funding round with investment from Dragonfly Capital and…

India’s Supreme Court Lifts Banking Ban on Crypto Exchanges

The Supreme Court of India has ruled against a decision imposed by the country’s central bank nearly two years ago that curbed crypto trading in Asia’s third-largest economy. According to a report from Bloomberg, a three-judge bench of the court ruled on Wednesday in favor of petitions by crypto exchanges and startups that opposed the decision made by the Reserve Bank of India in April 2018, which banned domestic financial institutions from providing banking services to crypto exchanges. The central bank’s decision at the time forced crypto exchanges in the…

Bitcoin Drops 2% Following Fed’s First Emergency Rate Cut Since 2008

Bitcoin prices slid Tuesday after the U.S. Federal Reserve announced an emergency cut in interest rates to counteract risks to the economy from the spreading coronavirus.  The largest cryptocurrency by market value was down 2.2 percent to $8,722 as of 15:28 UTC (10:28 a.m. ET). Prices had surged 4.6 percent on Monday, rising alongside U.S. stocks as traders in traditional financial markets bet the Fed would soon cut rates to address the economic impact of the contagion. Efforts to contain the outbreak have disrupted travel and business activity while threatening…

BIS Paper Reckons With P2P Payments, Tokenized Securities, Central Bank Digital Currencies

Researchers at the Bank for International Settlements (BIS) are grappling with the future of payments – so much so that their newest quarterly report, released Sunday, is entirely dedicated to what that potential revolution holds. In its 138-page look at what lies beyond the financial horizon, the Swiss-based institution reckoned with coming trends that may well shape tomorrow’s payments infrastructure: tokenized securities, central bank digital currencies, cross-border payments and peer-to-peer innovations.   BIS Head of Research Hyun Song Shin said “the pace of change and potential for disruption” have made examining…