cryptocurrency regulation

Market Adds Close $3 Billion in the Last 24 Hours, Cardano Launches Crypto Card, Global Allianz Investors CEO Urges Regulators to Outlaw Cryptos

The crypto market has been forced to weather many storms such as the ongoing crypto winter, shutting down of more 1 million Bitmain S9 miners, tougher regulation and the recent call by Andreas Utermann to have cryptocurrencies outlawed. Mike Novogratz’s Digital Galaxy continues to raise money for crypto projects and Bitcoin Cash ABC to be listed on yet another exchange under the original BCH ticker symbol.

The crypto market made slight gains in the last 24 hours as close to $3 billion was added to the market in the same period. The market cap has grown from around $107 billion to just over $110 billion. All the top 10 cryptocurrencies are in the green with EOS surging 6.24 percent.

The top three assets – Bitcoin, Ripple’s XRP, and Ether are all up 2 percent or more. Outside the top 10, Waves (WAVES) lead the recovery with a 23 percent surge followed by Bitcoin Private at 18 percent. The latest fight back does not mark the end of the crypto winter – but merely a prevention of a larger slump in prices and market cap.

Staying with the markets, OKEx – the sixth largest exchange stated in a blog post published Dec. 11 that will be listing Bitcoin Cash ABC under the BCH ticker symbol. This comes after a messy Bitcoin Cash fork war that resulted in a massive sell-off – plunging the prices further down.

The ticker change will place on Dec. 13 at 5 AM UTC +1. The exchange will suspend the spot trading of both BCHSV and BCHABC during the ticker change.

OKEx is among the several exchanges that have taken this step. Gemini exchange recently listed Bitcoin Cash ABC for trading under the BCH ticker symbol. In late October, Coinbase, America’s largest crypto exchange threw its weight behind Bitcoin Cash ABC and listed it under the BCH ticker symbol. The exchange also went as far as saying that it would “continue to evaluate the safety of the BCH SV chain.” Coinbase also explained why it took the side of the ABC camp stating that it is due to “a number of factors including the fact that ABC has a higher hashrate and a longer proof-of-work (PoW) chain.”

Novogratz’s Digital Galaxy continues to fund crypto startups

Mike Novogratz’s Galaxy Digital has continued its trust in crypto startups after it took part financing BlockFi, a lender that offers USD loans against crypto collateral.

The crypto lending firm raised $4 million in a financing round led by Akuna Capital with participation from Anthony Pompliano’s Morgan Creek Digital, Susquehanna Government Products, and Fidelity-linked Devonshire Investors.

BlockFi announced that it plans to use the funds to expand its team and range of products. Dean Carlson, head of digital asset investments at Susquehanna was quoted as saying,

“we believe debt and credit markets in the crypto space will continue to grow and BlockFi is well-positioned to maintain its leadership position as the market expands.”

In July, the lender raised $52.5 million from a series funding round led by Galaxy Digital. This followed $1.5 million raised from ConsenSys Ventures, SoFi, Kenetic Capital, etc. in February. The company has so far raised more than $58 million from several rounds of funding.

The crypto lending firm recently stated that it is ‘bridging the gap’ between traditional capital markets and the cryptocurrency system.

Last week, Good Money startup raised $30 million in Series A funding led by Novogratz’ Digital Galaxy.

Novogratz, a well-known Bitcoin bull recently told Bloomberg that the ICO market is as good as dead.

“There was a lot of fraud, and there was a lot of hype, and people lost money,” said Novogratz, further adding that “the Securities and Exchange Commission (SEC) was behind the curve, so they slammed on the brakes.”

Global Allianz CEO calls for a total ban of cryptocurrencies

Speaking on Dec. 11 at a panel discussion in London, Andreas Utermann, the CEO of Allianz Global Investors – one of the largest asset managers in Europe – said that regulators should completely ban cryptocurrencies because they have played a crucial role in wiping out people’s savings.

After its spectacular and unstainable rise to $20,000 in December last year, Bitcoin’s price has fallen sharply to less than 75 percent of its all-time high (ATH). Bitcoin and Ethereum have both slumped by close to 90 percent.

“You should outlaw it,” said the Utermann. “I am personally surprised that regulators haven’t stepped in harder.” Andrew Bailey, the chief of UK’s Financial Conduct Authority responded by arguing that Utermann’s remarks were quite strong.

While Utermann may have sympathizers in the form Nouriel Roubini, a Professor of Economics who has previously called Bitcoin the mother of all bubbles, there are those who believe that crypto assets have a role to play in the modern financial system.

Mohamed El-Erian, the chief economist at Allianz doesn’t believe that cryptocurrencies will ever replace fiat currency but says that the digital assets will sail past the bear market. Christine Lagarde, the chief of the International Monetary Fund (IMF) even said that central banks should consider issuing “digital form of money.”

80 percent of active wallets hold less than $100 in crypto

There are currently over 22 million registered Bitcoin wallets and they all have varying degrees of assets. However, a recent research by Delph shows that 80 percent of those wallets hold less than $100 in crypto. Half of the wallets (about 11 million) hold just over $3.

According to the report, whales (entities that hold between $341 million and $3.4 billion in Bitcoin) make up less than 3 percent of the wallets and have been fingered for taking part in manipulating the price of Bitcoin. 25 percent of the wallets hold between $34,000 and $340,000 worth of Bitcoin.

A new research report released by the Blockchain Transparency Institute in November indicate that only four exchanges have over 100,000 active daily active users. Coinbase is on pole position with 422,000 active daily followed by Binance with 313,000 users. OKEx and Huobi complete the list with 105,000 and 101,000 active users respectively.

 

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Cardano launches crypto card

Cardano, through its commercial arm, Emurgo, has partnered with Metaps to launch a cryptocurrency card in South Korea backed by Cardano’s ADA. The new card is expected to be accepted by more than 33,000 merchants. Emurgo and Cardano have formed Metaps Plus, the platform that manages the crypto card.

“It’s very meaningful for us to work with ADA, with the entire team, because they were the strategically ready one,” said Seungyeon Kim, the CEO of Metaps Plus. Kim further added that “Emurgo was the only partner ready with deep understanding into offline payment integration and strategic focus to provide a practical application for cryptocurrencies. We plan to develop this product further to ensure we have solid use cases for broader offline adoption with Korean online and offline merchants.”

Charles Hoskinson, the founder of Cardano and former CEO of Ethereum recently hit out at EOS, claiming that the U.S. Securities and Exchange Commission will take action against EOS’ one-year long ICO that raised more than $4 billion.

Speaking at a conference in Edinburgh, Hoskinson said that the ICO had many faults and is convinced that the SEC will have some issues with Block.one – the parent company of EOS. “I can’t imagine how they’re [Block.one] not going to have some sort of issue with the SEC,” said Hoskinson, adding that the ICO was “was egregious to the core,”

EOS had its own problems after the record-breaking ICO. The company had a chaotic MainNet launch and was later criticized for reversing an already confirmed transaction. The two platforms – EOS and Cardano – are used by developers to build decentralized applications (Dapps).

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