Gemini has secured insurance coverage for custodied digital assets from lending services firm Aon.
Gemini’s digital insurance coverage will complement the already available Federal Deposit Insurance Corporation (FDIC)-insured U.S. dollar deposits. Yusuf Hussain, Gemini’s Head of Risk, said:
“Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions. Educating our insurers not only allows us to provide such protections to our customers, but it also sets the expectation for consumer protection across the crypto industry.”
In July, Aon claimed to occupy 50 percent of the cryptocurrency insurance market, expecting to see more crypto-specific protections catering to the industry. Another insurance brokerage company, Marsh & McLennan, reportedly said that 2018 had been “brisk” for crypto-insurers, revealing that it had formed its first-ever team dedicated to broker policies for blockchain startups.
Binance Labs has reportedly invested millions of dollars in decentralized digital content ecosystem Contentos.
Binance Labs is an initiative that seeks to support early-stage blockchain and digital currency projects and entrepreneurs by making direct investments, as well as mentoring and providing technical advice to projects.
Binance Labs made a “multi-million” dollar contribution to decentralized digital content ecosystem Contentos, but the exact amount of secured investment was not disclosed.
Within the investment project, Contentos will reportedly develop a decentralized ecosystem, which it says will offer transparency and monetization of content, without third-party censorship or removal of content.Earlier that month, Zhang suggested that if the ICO bubble bursts, it would be a “good thing for the industry.” She said that current valuations are “high and unreasonable” and that truly valuable products will only come into fruition once the market evens out.
Automated trading programs, or bots, are manipulating digital currency prices on cryptocurrency exchanges, according to a Wall Street Journal (WSJ) report.
Automated trading software is a program that allows traders to set specific rules for both trade entries and exits, submit orders to a market center or exchange, and then automatically executes them by means of a computer at speeds greater than any human is able. Trading programs are available for traditional and crypto markets, and can be deployed for both legitimate and manipulative strategies.
Addressing crypto markets, WSJ cites a lack of proper regulation as the main condition that allows bots to execute abusive strategies on an industrial level. According to WSJ, $80-million digital currency hedge fund Virgil Capital uses its own bots on a number of crypto exchanges around the world. Stefan Qin, managing partner of Virgil Capital, told WSJ that he is in a constant cat-and-mouse game with enemy bots.
Example of price manipulation in digital currencies cited by WSJ is trader Kjetil Eilertsen, who began trading Bitcoin (BTC) in 2011. Eilertsen reportedly developed a program called Quatloo Trader, that was promoted as “the best market-manipulation tool in the world of crypto.” The idea of the program is to make market manipulation easier by using built-in tools like a special tab called “whale tools,” which executes several “abusive strategies.”
Coinbase is finishing negotiations that would value the company at $8 billion, according to Recode.
Citing anonymous sources familiar with the matter, Recode states that Coinbase is in talks with Tiger Global and its shareholders regarding a possible $500 million investment. The sources reportedly said that Coinbase would add $250 million to its treasury, while another $250 billion could be slated for buying out existing investors.
Tiger Global Management is an investment firm that invests globally in both private and public markets.
According to CNBC, a deal with Tiger Global would make Coinbase one of the most highly valued startups in the U.S. Last year, following a series D funding round led by IVP, with participation from Section 32, Draper Associates, and others, Coinbase was worth an estimated $1.6 billion.
Over the past year, Coinbase has moved quickly to expand its business on multiple fronts. In May, the exchange announced the launch of four new products which aim to “unlock $10 billion of institutional investor money sitting on the sideline.”
Former U.S. President Bill Clinton said that the “permutations and possibilities of blockchain technology are staggeringly great,” at Ripple’s annual Swell conference in San Francisco on October 1.
Clinton spoke with Gene Sperling, who was his economic advisor from 1996-2001, where they covered a range of topics from foreign policy and cultural issues to blockchain and cryptocurrency investing and banking. Clinton said: "This whole blockchain deal has the potential it does only because it is applicable across national borders and income groups. The permutations and possibilities are staggeringly great.”
While Clinton acknowledged the potential of disruptive technologies like blockchain, the former president urged that economic and social policy “work better as positive sum games.”
Clinton reportedly received his first Bitcoin (BTC) back in 2016 at a conference in Washington, D.C., when venture capitalist and tech entrepreneur Matthew Roszak gave the former president a gift of Bitcoin. Notably, Hillary Clinton, wife of the former president, opted not to accept BTC donations for her presidential campaign.
Chinese cryptocurrency exchange Huobi has responded to accusations it has “colluded” with EOS on “mutual voting” practices.In a brief statement, the exchange said an investigation into the allegations was still ongoing. “Based on the initial investigation, there were no financial contracts involved between Huobi and any third party,” the statement reads.“The investigation is still on-going [sic] and therefore, we seek your patience and co-operation [sic] in this matter.”
Recently, Block.One, the parent company of the EOS platform, had issued a statement of its own saying it “was aware” several parties had levelled accusations of voting process manipulation at certain participants. Block.One called the claims “unverified.”“We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process,” the statement read. The EOS voting process had previously come under fire from cryptocurrency community figures, among them Ethereum (ETC) co-founder Vitalik Buterin, who had warned about the potential for manipulation last year.
The self-regulatory Japan Virtual Currency Exchange Association (JVCEA) plans to stricten its customer asset management measures.
JVCEA is a self-regulatory group of some of the largest licensed exchange operators in Japan, established in April of this year. Now, the organization is reportedly planning to tighten its rules by establishing a limit on the amount of digital currencies that can be managed online by any exchange.
According to The Japan Times’ sources, the limit will likely be set at around 10 to 20 percent of customer deposits. JVCEA is reportedly in the process of revising its rules, originally formulated in July, after which they will be presented for certification to Japan’s Financial Services Agency (FSA).
Crypto exchanges normally store most of their customers’ crypto assets offline on cold storage wallets. However, a certain amount of cryptocurrency is usually stored on a hot wallet that is connected to the Internet, making it vulnerable to potential hacker attacks. JVCEA’s new rules will limit the share of digital assets that can be stored this way by the organization’s member exchanges.
The push for stricter self-regulation comes after the recent hack of a Japanese crypto exchange Zaif that has lost 6.7 billion yen ($59.7 million) worth of crypto assets belonging to both the company and its customers.
StellarX, a Stellar-based zero-fee decentralized crypto exchange has left its beta phase and was fully launched.The exchange is based on Stellar’s universal marketplace. Stellar is an open-source protocol for cryptocurrency to fiat transfers. Its own cryptocurrency XLM is currently the 6th largest, with a market cap of $4.8 billion. According to the latest press release, StellarX positions itself as a “real fiat onramp,” as it allows users to deposit U.S. dollars directly from a U.S. bank account. In addition, the exchange shows digital tokens for a number of fiat currencies, such as euro, Chinese yuan, Hong Kong dollar, the British pound, and others In the blog post StellarX also revealed its plans to add digitized versions of other kinds of assets, such as bonds, stocks, real estate, and commodities. Comparing itself to Robinhood, a major U.S. financial services provider that started offering zero-fee crypto trading in February of this year, StellarX has stressed that using its platform costs the users “nothing.” This is due to the company’s promise to “refund all network fees”.
Major Indian cryptocurrency exchange Zebpay announced it had stopped all trading due to the country’s banking ban.Citing “extremely difficult” conditions it encountered attempting to process customer orders in the current environment, the exchange gave just several hours’ notice of the decision. The move caught many by surprise, coming almost three months after the July 6 deadline for banks to comply with the Reserve Bank of India’s (RBI) ban on offering services to cryptocurrency businesses. “The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.” the post in social media states. India’s Supreme Court continues to grapple with the final appeals against the RBI ban, ahead of a final judgement on its legality which has seen multiple delays. Zebpay had halted fiat operations around the deadline in July, executives hoping that a change in conditions would allow a new banking partner to take over the necessary services.
Major altcoin Ethereum (ETH) is about to see a “trend reversal and rally strongly” up to $1,900 per token by the end of 2018, according to Fundstrat head of research Tom Lee.
In a note to clients of Fundstrat Global Advisors, Lee noted the “overly negative” sentiment on the Ethereum market, which he says will be a basis for its strong rebound in the near future.
In his prediction, Lee has referenced the historical performance of Ethereum, citing that the times when the altcoin “underperformed peers by two standard deviations,” the price trend saw a subsequent reverse.
Lee concluded that Ethereum will reach $1,900 by the end of 2018 — a price point that is at least 40 percent higher than Ethereum’s all-time high of $1,349, recorded on January 13, 2018. The altcoin’s price must surge by 726 percent by the end of the year, according to Lee.
In July, Lee reiterated his bull position in regard to major cryptocurrency Bitcoin (BTC), claiming that the cryptocurrency could trade between $22,000 and $25,000 by the end of the year. Most recently, the crypto analyst concluded that Bitcoin “could end the year explosively higher,” citing a correlation between BTC and emerging markets.
After surging to above $1,300 in early 2018, Ethereum has seen a massive decline, with the current price amounting to just around 17 percent of the all-time high. Ripple (XRP) has twice overtaken Ethereum in terms of market capitalization in September.
Austria’s government is set to use the Ethereum public blockchain to issue €1.15 billion ($1.35 billion) of government bonds in an auction next week.OeKB, one of Austria’s biggest banks, will reportedly operate the live blockchain notarization service. During the auction, scheduled for October 2, the bank will issue the bonds on behalf of the Austrian Treasury (OeBFA). OeKB says this will be the the first time a blockchain-based notarization service will be used as part of a Federal Bond Auction in Austria. The procedure, which has reportedly been successfully tested, will draw on a system that has been developed internally by the bank to “notarize data from Austria’s established system — the Austrian Direct Auction System (ADAS) — “as hash values on the Ethereum public blockchain.” As Kleine Zeitung notes, the use of blockchain in this instance does not go as far as issuing tokenized bonds that would function in parallel to existing paper or digital systems. However, as Markus Stix, managing director at the Austrian Treasury, told Kleine Zeitung, the use of the technology has key benefits for both security and cost reduction.