Is DeFi for Real?

Is Defi For Real?

What Is DeFi And What Is It Used For? Decentralized Finance or DeFi has several use cases today, but the technological and regulatory frameworks needed to mainstream it are yet to evolve. DeFi is a novel way of approaching financial transactions that removes the need for custodial and third party agencies between any two users in a transaction. Traditional banks and financiers are no longer needed for financial dealings in DeFi, allowing it to offer more choices for secure transfers to a wider customer base. Users can choose from several dApps…

Digital Banking Becomes A Reality

Digital Banking Becomes A Reality

Kraken Financial is the first crypto currency exchange to get approval to provide digital banking services as Digital Banking Becomes A Reality. Tentatively called Kraken Financial, the new bank will be able to make conversions between digital and fiat currencies for customers without the intervention of a third party. Kraken exchange, which allows users to buy, sell, and trade digital currencies, has so far depended on external portals for conversions between fiat and crypto currencies. With the new charter, the exchange will now be able to help customers bring the…

Pantera Capital Has Raised 3x More This Year Than It Did in 2019

Pantera Capital, a crypto investment firm that has $600 million under management, had a very good year, but still not as good as 2018. According to a recent SEC disclosure, Pantera Venture Fund III has raised $164,705,834 to date — and a whopping $68,841,379 of that has come over the last twelve months. While the fund raised only $24,419,455 last year, it still has not topped its 2018 raise of $71,445,000. Pantera Capital fundraising 2018-2020. Source: Cointelelgraph, SEC. The average investor ticket size, which amounts to roughly $1.77 million, increased…

Bulls Stampede Toward $12K Bitcoin Price as Weekly Close Approaches

Bitcoin price is making a strong push toward $12,000 with just 24-hours before the weekly close occurs Despite multiple rejections at the $12K mark, BTC continues to make higher lows and traders are buying dips at underlying support levels Chainlink reached a new all-time high at $19.80 and Ether is struggling to push above $430 Cryptocurrency daily market performance snapshot. Source: Coin360 Typically, for Bitcoin (BTC), weekends are marked by reduced trading volume as day traders take a break and the CME Bitcoin markets are closed.  Experienced traders will also…

Record Ethereum Network Use and Gas Fees Pose Risk to DeFi Expansion

The number of Ethereum network transactions more than doubled in 2020 and is now virtually identical to the January 2018 all-time high.  As shown on the chart below, the number of transactions doubled in the past six months to stand at 1.23 million per day.  Ethereum 7-day average daily transactions. Source: CoinMetrics This situation might seem very bullish at first, but one must remember both EOS and Tron (TRX) started as ERC-20 tokens before launching their own mainnet and running fully independent blockchains. A similar chain migration is happening on…

Ireland Will Transpose Latest EU Anti-Money Laundering Rules Into National Law

Cryptocurrency firms in Ireland will soon be regulated in line with the latest European legal framework for the prevention of money laundering and terrorism financing. On Aug. 10, the Cabinet of Ireland approved a bill to transpose the criminal justice elements of the European Union’s Fifth Anti-Money Laundering Directive (AMLD5) into national law, thereby strengthening existing legislation.  Approval from the Cabinet gives Ireland’s Minister for Justice and Equality, Helen McEntee, the go-ahead to publish the new bill, entitled The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020.  Among…

New York Financial Regulator Greenlights 10 Tokens for Custody

The New York State Department of Financial Services has issued a greenlist of 8 virtual currencies for sale and trade, and 10 coins approved for custody by licensed entities. According to a Aug. 3 update on the New York Department of Financial Services website (NYDFS), state regulators have approved 8 cryptocurrencies for listing and trading. These tokens include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Binance USD (BUSD), Gemini Dollar (GUSD), Pax Gold (PAXG), and the Paxos Standard Token (PAX). The NYDFS also greenlighted the same coins for…

Number of Bitcoin Cash Whales Drop Following 39% Price Surge

Following a 39% price surge at the end of July, at least 10 Bitcoin Cash whales have left the network, possibly trading or selling their millions in holdings.  According to Crypto Twitter user Ali Martinez, data from analytics site Santiment shows the number of investors holding between 10,000-100,000 Bitcoin Cash (BCH) — roughly $3-30 million — has fallen by 10 since Aug. 1. The drop comes after the token surged 38.7% from $224.46 on July 17 to a three-month high of $311.34 on July 31, implying that a number of…

Americans Trade Depreciating Dollars For Bitcoin

A Bloomberg article claims that Americans are foregoing the safety of the dollar for more speculative assets like stocks, gold, and Bitcoin (BTC). High saving rates, low yields Because of the COVID-19 lockdown, the personal savings rate in the U.S. is at a historic high. The yield offered by the financial institutions on savings accounts, however, is close to zero. At the same time, assets as Bitcoin, equities, and gold, all have made double-digit gains since March. This is making them an attractive option for investors. Source: Bloomberg. The article…