The Ultimate Comprehensive and Up-to-Date Source to Master the Crypto Markets:
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The Rising Force: Growing BRICS Relations Signal a New Economic Powerhouse
Nov 6, 2024 | 18:30 pmBRICS is expanding rapidly, strengthening ties as its growing membership boosts market capacity and cements its position as a major global economic force. Inside the Economic Surge of BRICS – A New Global Power Bloc Emerges The BRICS economic bloc is experiencing rapid growth, with its expanding market capacity and economic influence now outpacing traditional […]
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Bitcoin Taps Intraday High of $76.4K—Is This the Start of a Golden Bull Era?
Nov 6, 2024 | 17:15 pmBitcoin (BTC) hit a peak of $76,481 on Bitstamp shortly after 3 p.m. EDT Wednesday. By 7:30 p.m., the flagship cryptocurrency hovered at $75,297 per coin. Market Chaos as Bitcoin Short Sellers Take a $242M Hit The day brought bitcoin a solid gain of over 9% against the U.S. dollar as of 7:30 p.m. It’s […]
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Dogecoin Primed for Massive Breakout: Peter Brandt Says ‘In Musk We Trust’
Nov 6, 2024 | 16:30 pmDogecoin is set for a major rally, with veteran trader Peter Brandt forecasting new all-time highs as Elon Musk’s influence and a channel breakout drive momentum. Peter Brandt Predicts DOGE Rally: Channel Breakout Signals New Highs With Elon Musk in Play Veteran trader and chart analyst Peter Brandt has indicated optimism about dogecoin’s (DOGE) upcoming […]
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TRON Unites as Silver Sponsor at SmartCon, Justin Sun Announces TRON Integration With Chainlink Data Feeds
Nov 6, 2024 | 16:00 pmPRESS RELEASE. Geneva, Switzerland, November 6, 2024 – Justin Sun, Founder of TRON, Global Advisor of HTX and Prime Minister of Liberland, delivered a keynote address at the Chainlink SmartCon, held in Hong Kong from October 30 -31. This industry-leading conference brought together top blockchain founders and experts from the world’s largest financial institutions and […]
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Kenya Collects Over $77M in Taxes From 384 Crypto Traders
Nov 6, 2024 | 14:30 pmThe Kenyan government collected $77.5 million tax revenue from cryptocurrency traders in the last fiscal year. Kenya Seeks $465 Million in Crypto Taxes The Kenyan government collected $77.5 million (10 billion shillings) in taxes from cryptocurrency traders during the 2023-24 financial year, Anthony Mwaura, head of the Kenya Revenue Authority (KRA), recently disclosed. Mwaura, speaking […]
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Solama: The Best Online Crypto Casino of 2025 Has Arrived – And It Stands Out
Nov 6, 2024 | 13:00 pmOn November 1, the crypto meme community introduced an innovative online casino, Solama’s Casino. But this isn’t just another addition to the crypto gambling world—it’s a new paradigm where 100% of the casino’s net profits are reinvested back into the Solama token project. Every dollar earned benefits $Solama token holders directly, making it the first […]
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Hut 8 Gears up for a Mining Power Surge With 31K New Bitmain Antminers
Nov 6, 2024 | 12:30 pmHut 8 Corp., a North American bitcoin miner, has unveiled plans to enhance its application-specific integrated circuit (ASIC) fleet, aiming for a boost in self-mining efficiency and expanded hashrate capacity by early 2025. Hut 8 Moves to Boost Mining Efficiency With ASIC Fleet Upgrade As part of this effort, Hut 8 (Nasdaq: HUT) is acquiring […]
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Ripple CEO Calls on Trump for Sweeping SEC Reforms in First 100 Days
Nov 6, 2024 | 11:40 amOn Wednesday, Ripple CEO Brad Garlinghouse offered a pointed roadmap for the early days of Donald Trump’s administration, outlining immediate steps that could reshape digital asset regulation. Garlinghouse to Trump: Clear the SEC and Drive Crypto Clarity in First 100 Days In a recent post on X, Ripple CEO Brad Garlinghouse congratulated Donald Trump on […]
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Boom or Bust? Research Shows Only 3% of Meme Coins Survive
Nov 6, 2024 | 10:45 amMeme coins are the current rave in the crypto industry. However, question marks remain over their long-term viability. Meme Coins: Next Big Thing or Exit Liquidity for Cabals? Meme coin traders, hold your seats. According to a recent publication by Binance Research, 97% of meme coins are already dead with almost $0 of trading volume. […]
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Dogecoin and Shiba Inu Pumping as Bitcoin Passes $75K, Flockerz Could Explode Next
Nov 6, 2024 | 10:00 amPro-crypto Donald Trump has claimed in the US election and the market is booming, with Bitcoin hitting a new all time high of $75,000. Meme coins are surging across the board, with Dogecoin (DOGE) and Shiba Inu (SHIB) having both posted hefty gains in the past day as the bulls take control of the crypto […]
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Donald Trump's Win Sends Bitcoin to New Heights, 11,000 New Millionaire Wallets Added
Nov 6, 2024 | 08:43 amCryptocurrency prices surged on Wednesday following Donald Trump’s victory in the just concluded US presidential election. Bitcoin jumped to a record high of $75,317, according to CoinMarketCap. This rally pushed over 11,000 new addresses into millionaire status, highlighting a bullish sentiment among investors with sights set on new all-time highs, Finbold reported. Bitcoin Millionaires SurgeAs Bitcoin’s price climbed rapidly, the count of BTC millionaire addresses experienced a notable jump. According to data from BitInfoCharts, on October 7, there were 121,851 addresses holding over $1 million in Bitcoin. By November 6, this figure reportedly surged to 132,842, adding 11,487 new millionaires in a single month. The increase in millionaire addresses includes 121,126 addresses holding between $1 million and $9.99 million and 11,716 addresses surpassing $10 million in value, marking a 12.3% increase in the highest-value segment.These numbers underscore the level of optimism among investors, even in the face of economic volatility, with many seeing Trump’s win as a turning point for cryptocurrencies. Bitcoin’s rally seems linked to Trump’s presidential win. Trump’s stance on cryptocurrency has been perceived as more favorable than that of previous administrations.Election Outcome Boosts BitcoinAdvocates like Robert F. Kennedy Jr. and Tesla’s Elon Musk are lending further credibility to crypto in the US financial landscape. Leading up to the election, Bitcoin faced multiple rejections around the $72,000 level, sparking concern over its ability to sustain new highs. Some investors even liquidated holdings to avoid potential volatility spikes. Trump's administration is expected to offer an environment more conducive to cryptocurrency, which could attract new investors.Last month, reports showed that investors were moving to crypto investments in record numbers due to uncertainty related to the US election. CoinShares noted a monthly inflow of over US$400 million into digital asset investment products.Towards the election day, opinion polls favoring Republicans who are perceived as more supportive of digital assets boosted Bitcoin and blockchain-related investments. Elsewhere, President-elect Donald Trump, while attending the Bitcoin 2024 Conference, lured the crypto community with many promises, including dismissing the Securities and Exchange Commission Chair Gary Gensler if re-elected. This article was written by Jared Kirui at www.financemagnates.com.
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2024 US Election Results: Trump Victory Ushers In First Bitcoin-Friendly Administration
Nov 6, 2024 | 07:21 amThe US presidential election results are in, and Donald Trump scored a resounding victory, sweeping the electoral college and the popular vote. There are a huge number of takeaways from this emphatic resolution to a dramatic and unorthodox presidential race, but let’s focus on Bitcoin and blockchains and consider the implications for the crypto industry from this point on.A Crypto-Focused CampaignFrom the top, it’s important to note that there has never previously been a presidential campaign that featured crypto as prominently as that just run by Donald Trump. His push for the presidency received advice and backing from David Bailey, the CEO of Bitcoin Magazine. The campaign accepted donations in crypto, and in July, Trump was the headline speaker at the Bitcoin 2024 Conference in Nashville.At that event, Trump made a series of very clear, pro-bitcoin pledges, including intentions to stockpile BTC as a national strategic reserve asset and replace Gary Gensler, who is perceived as having overseen a crypto-hostile regulatory environment, as Chair at the SEC.JUST IN: Crowd goes absolutely nuts after Donald Trump vows to fire SEC Chairman Gary Gensler during the Bitcoin Conference in Nashville, Tennessee.Trump was clearly taken aback at the crowd's reaction when he made the announcement."On day one, I will fire Gary Gensler and… pic.twitter.com/0CyOMaY6FY— Collin Rugg (@CollinRugg) July 27, 2024Trump also promised to protect and bolster the Bitcoin mining industry in the US and put an end to Operation Choke Point 2.0 (an alleged behind-the-scenes strategy by US officials to cut crypto off from banking services). He also pledged to commute the sentence of Ross Ulbricht, who is serving life in prison for making and running the online, BTC-accepting black market Silk Road. Besides that, Trump appears to be surrounded by a tech-centred, demonstrably crypto-friendly inner circle. This includes, most famously, Elon Musk, whose car company Tesla holds 9,720 BTC, and Vice President-Elect JD Vance, who reportedly personally holds a significant amount of BTC.Additionally, last week, news broke that Strive Asset Management–the firm founded by Trump surrogate Vivek Ramaswamy–has launched a wealth management business that integrates Bitcoin. Trump and his sons, Donald Jr., Eric, and Barron, are all closely involved in a DeFi project called World Liberty Financial.Pro-Crypto Politicians Enter the StageAdvocacy group Stand With Crypto, which aims to build political support for the crypto industry in the US, reports through its election tracking service that, currently, 247 candidates it categorizes as “pro-crypto” have been elected to the House of Representatives, compared to 113 it labels as “anti-crypto”, while in the Senate, the numbers are 15 pro-crypto compared to 10 anti-crypto.Welcome to the new members of America's most pro-crypto Congress ever... 219+ pro-crypto candidates and counting have now been elected to the House & Senate. Tonight the crypto voter has spoken decisively - across party lines and in key races across the country. Americans… pic.twitter.com/t91wC3Wtzr— Brian Armstrong (@brian_armstrong) November 6, 2024 Additionally, a key individual battle has turned up a pro-crypto result in Ohio, where Sherrod Brown, Chair of the Senate Banking Committee and markedly antagonistic to the crypto industry, lost his seat after almost twenty years in the Senate, to Bernie Moreno, who is strongly supportive of crypto.This has resulted in plenty of speculation about what happens next for crypto under the new Trump administration. A plausible scenario is that the US shifts from a country with no regulatory clarity to becoming one of the world’s most crypto-friendly regions, integrating Bitcoin and further accelerating broader crypto adoption. Simultaneously, other related shifts occurred during the presidential race, including, notably, independent media and podcasts overtaking legacy media as a major source of influence, with new media perceived as enabling unfiltered discussion in front of large audiences.https://t.co/CI6i32zH9j pic.twitter.com/sDS23DBEY5— Joe Rogan (@joerogan) October 26, 2024The key example here is The Joe Rogan Experience, on which Donald Trump appeared and racked up tens of millions of views after also participating in several other long-form podcast discussions.Additionally, prediction markets proved more accurate than traditional polls as a gauge of public opinion and a predictor of events. The breakout platform in this regard was Polymarket–which runs on crypto rails– while Kalshi also provided valuable indicators.It can be claimed that Polymarket demonstrates the advantages of decentralized mechanisms, and relatedly, we are witnessing the increased adoption of tokenized products within traditional finance.This can be seen in this year's launch of tokenized RWA fund BUIDL, from BlackRock, while Franklin Templeton manages tokenized fund FOBXX, and there are similar developments at UBS, which last week announced plans for a tokenized investment fund project called the UBS USD Money Market Investment Fund Token (uMINT).This crypto-linked TradFi trend is likely to experience tailwinds in a clearer, more permissive regulatory environment, and the same can be said of crypto ETFs. In 2024, spot BTC and spot ETH ETFs were launched in the US, but several operators already have applications filed with the SEC for SOL, XRP, and Litecoin ETFs (21Shares is interested in SOL and XRP ETFs, Canary Capital is interested in SOL, XRP, and Litecoin ETFs, VanEck is interested in SOL ETFS, and Bitwise is interested in XRP ETFs).And so if, as expected, the SEC tilts in attitude under a new, pro-crypto SEC Chair, these kinds of altcoin-based funds may begin to launch, although whether or not they can replicate the explosive growth of the spot BTC ETFs would remain to be seen.Ultimately, though, the prevailing sense is that crypto will be afforded room to breathe and develop in the US as an integrated part of the country's tech landscape from now on, at the very least, as an openly Bitcoin-friendly administration takes office for the first time ever. This article was written by Sam White at www.financemagnates.com.
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Hut 8's Cryptocurrency Mining Upgrade Targets 66% Hashrate Growth by 2025
Nov 6, 2024 | 04:52 amHut 8 Corp., a Cryptocurrency Mining company and major energy operator in North America, announced the purchase of 31,145 BITMAIN Antminer S21+ units as part of its initial ASIC fleet upgrade. The company has agreed to a price of $15.00 per terahash for these miners, which are scheduled for delivery in early Q1 2025.Hut 8 Upgrades Mining Fleet EfficiencyHut 8 plans to use these new miners to improve the efficiency of its 111 MW self-mining capacity at existing sites. Once operational, the upgrade will increase Hut 8's self-mining rate by about 3.7 exahashes per second (EH/s), reaching a total of around 9.3 EH/s—a 66% increase.“After extensive modeling, we selected the BITMAIN Antminer S21+ for our initial fleet upgrade due to its strong return profile relative to higher-efficiency models that require larger capital outlays,” said Asher Genoot, CEO of Hut 8. “The S21+ offers a faster payback period than more efficient models across a wide band of future hashprice scenarios, enabling us to optimize investment returns and accelerate value creation.”This move is also expected to improve energy efficiency, reducing power consumption from 31.7 to 19.9 joules per terahash, which marks a 37% improvement.Hut 8 Announces Initial ASIC Fleet Upgrade - Green Stock News https://t.co/cm08Dba3Pu $HUT #cleantech #blockchain #news #stocks pic.twitter.com/m5PSv8PX6a— Green Stock News (@greenstocknews) November 6, 2024Cryptocurrency Mining Capacity Expansion PlannedHut 8’s existing option to purchase approximately 15 EH/s of hosted ASIC miners at its Vega site could allow it to reach about 24 EH/s in self-mining capacity by Q2 2025, achieving an average efficiency of 15.7 J/TH.Genoot added: “Deep, strategic partnerships across the value chain are central to our approach to building a next-generation energy infrastructure platform.”“This purchase builds on our previously announced ~15 EH/s partnership with BITMAIN to host the U3S21EXPH ASIC miner, and we look forward to further developing our relationship with BITMAIN and other partners as we focus on disciplined, creatively structured growth across Bitcoin mining and AI compute infrastructure.”According to Hut 8, this upgrade aligns with the company’s long-term strategy to grow in energy-demanding sectors like Bitcoin mining and AI computing, aiming to maximize returns from its energy assets and infrastructure. This article was written by Tareq Sikder at www.financemagnates.com.
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Binance Integrates Amazon AI Services for User Verification and Support
Nov 5, 2024 | 06:08 amBinance added generative AI technology to its services in collaboration with Amazon Web Services (AWS). The exchange mentioned that this initiative aims to improve onboarding and customer support processes. According to the official announcement, Binance will now use AWS's generative AI services, including Amazon Bedrock and Amazon Elastic Container Service. The collaboration reportedly aligns with the exchange's objective of combining blockchain innovation and cloud computing.AWS Generative AI Amazon Bedrock will serve as the AI basis, reportedly enabling Binance to access foundational models and deploy AI-driven applications that improve its processes, including user verification.The initiative specifically targets the cumbersome onboarding process. Binance's new AI-powered Know Your Customer system reportedly populates user information automatically, performs proof of address checks, and reduces the need for manual World-Check case reviews.Commenting on the agreement, Rohit Wad, Binance’s Chief Technology Officer, mentioned: “AWS’s comprehensive cloud services enable Binance to continue its ongoing commitment to ensuring user-centric services are supported by operational excellence and customer satisfaction.”“By integrating AWS’s suite of cloud technologies, including cutting-edge generative AI capabilities, we are not only streamlining our operations but also setting new standards for efficiency and reliability in the blockchain and cryptocurrency industry.”Amazon and Crypto InnovationAmazon Bedrock also enables Binance's new AI-enhanced chatbot, which is designed to answer user queries. According to Binance, the chatbot's ability to provide instant answers and resolve concerns reflects the potential of AI to optimize real-time customer support in the cryptocurrency industry.AWS's suite of services, including Amazon CloudWatch and AWS Lambda, is pivotal in Binance's move toward automated system diagnostics and troubleshooting. The new agreement is part of Binance's collaboration with AWS, which utilizes cloud-based AI solutions to enhance efficiency in the digital space.Last month, Binance unveiled a new solution targeting wealth managers. This solution allows wealth advisors to integrate cryptocurrency into their services, offering high-net-worth clients a specific approach to exploring digital assets. Dubbed Binance Wealth, the new service allows wealth managers to manage their clients' onboarding process, including Know Your Customer and Know Your Business documentation to facilitate the transition into the digital asset space. This article was written by Jared Kirui at www.financemagnates.com.
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Robinhood, Kraken Form Alliance to Challenge USDT and USDC Duopoly in $170 Billion Market
Nov 5, 2024 | 03:14 amRobinhood has partnered with major cryptocurrency firms to launch the Global Dollar Network. This marks a significant expansion of the retail trading platform's digital asset strategy. The initiative, which includes industry heavyweights Kraken, Paxos, and Galaxy Digital, aims to challenge the current stablecoin market dominated by Tether and USD Coin.Robinhood Joins Forces with Crypto Giants to Fight Stablecoin DuopolyThe new network will introduce USDG, a regulated stablecoin issued by Paxos in Singapore. DBS Bank, Southeast Asia's largest bank, will manage the reserve assets. This move represents Robinhood's most ambitious crypto-related venture since introducing cryptocurrency trading to its platform.“Stablecoins have been proven to offer a bridge between traditional finance and cryptocurrencies, enabling faster, lower cost and more efficient transactions,” said Johann Kerbrat, GM & VP of Robinhood Crypto. “We're pleased to support the Global Dollar Network's efforts to expand these opportunities, which align with our commitment to making financial access easier and more inclusive.”The partnership could significantly boost Robinhood's competitive position in the digital payments space. The company's involvement in the Global Dollar Network suggests a strategic pivot toward expanding its cryptocurrency offerings beyond simple trading services to include more sophisticated financial products.Robinhood's participation could help bring stablecoin technology to mainstream retail investors. The platform's approximately 24 million users could potentially gain direct access to USDG, facilitating easier entry into the cryptocurrency ecosystem.The launch of USDG comes at a crucial moment in the stablecoin market, currently dominated by Tether (USDT) and USD Coin (USDC), which together control over 80% of the market on Ethereum. By introducing a regulated alternative with broad institutional backing, the Global Dollar Network aims to provide a more equitable and transparent option for both retail and institutional users.How USDG Aims to Reshape the Stablecoin LandscapeThe Global Dollar Network's USDG stablecoin introduces several innovative features that distinguish it from existing market offerings. Operating initially on the Ethereum blockchain, USDG maintains a 1:1 peg with the US dollar through a combination of dollar deposits, short-duration US government securities, and cash equivalents.What sets USDG apart is its regulatory-first approach. By establishing operations in Singapore under Paxos's leadership, the stablecoin positions itself to comply with the Monetary Authority of Singapore's forthcoming stablecoin framework. This strategic choice reflects a growing emphasis on regulatory compliance in the digital asset space."The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential," explains Arjun Sethi, Kraken's Co-CEO. “USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”Partner Ecosystem and DistributionThe network's partner ecosystem reflects a carefully orchestrated collaboration among industry leaders:Anchorage Digital will provide institutional custody servicesKraken and Bullish will serve as primary trading venuesGalaxy Digital will facilitate institutional adoptionNuvei will handle payment processing integrationPaxos manages issuance and regulatory complianceRobinhood offers retail distribution channelsDBS Bank's role as the primary banking partner adds a layer of traditional financial security to the project. The bank's reputation as Asia's safest bank for 16 consecutive years lends significant credibility to USDG's reserve management.Economic Model InnovationPerhaps the most revolutionary aspect of the Global Dollar Network is its economic model. Unlike traditional stablecoins where issuers retain all reserve-generated income, USDG implements a profit-sharing structure that distributes benefits among network participants. This approach aims to incentivize adoption and create a more sustainable ecosystem."Stablecoins are replatforming the financial system," notes Charles Cascarilla, Paxos CEO and Co-Founder. "Global Dollar Network will return virtually all rewards to participants and is open for anyone to join."The network operates through an invite-only phase for qualifying participants, but its architecture allows for future expansion to include additional custodians, exchanges, payment providers, merchants, and financial institutions. This scalable approach suggests a long-term vision for growing the ecosystem while maintaining operational integrity. This article was written by Damian Chmiel at www.financemagnates.com.
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Bybit Ramps Up Crypto Compliance with VASP Registration in Georgia
Nov 5, 2024 | 03:02 amBybit has registered as a Virtual Asset Service Provider with the National Bank of Georgia. This registration aligns with Bybit's efforts to meet regulatory requirements and support the development of the digital economy in Georgia.In 2024, Bybit has pursued licensing in several key markets, including the Netherlands, Kazakhstan, and Türkiye. Bybit Enters Georgian Crypto MarketThe exchange's entry into the Georgian market is intended to support the country’s digital transformation initiatives. As interest in cryptocurrencies rises, Bybit aims to provide advanced trading solutions to local users, entrepreneurs, and institutional investors.Georgia's regulatory framework and geographical advantages position it as a potential hub for digital economic growth. According to Bybit, it seeks to contribute to this ecosystem through best practices, educational initiatives, and the promotion of innovation in the region.“We are honoured to be registered as the VASP by the National Bank of Georgia, marking a new chapter in our journey to support the growth of the crypto ecosystem,” said Ben Zhou, Co-Founder and CEO at Bybit. “This registration underlines our commitment to providing users in Georgia with a secure and compliant platform, further contributing to the region's ambition of becoming a hotbed for blockchain innovation." Bybit Receives Georgian VASP License, Strengthening Global Regulatory Presencehttps://t.co/bAVvwetnuV#PR pic.twitter.com/KSm0yrVxAE— Crypto Daily™ (@cryptodailyuk) November 5, 2024Nordic Blockchain Conference 2025 Highlights Bybit-NBA PartnershipMeanwhile, Bybit has formed a partnership with the Nordic Blockchain Association (NBA) to support innovation and growth in the regional blockchain ecosystem, as reported by Finance Magnates. This collaboration is part of the NBA's initiative to improve the blockchain community in the Nordics.The association seeks to tackle challenges associated with blockchain adoption and promote educational programs. Bybit's participation is expected to advance these objectives by utilizing the exchange's global presence to foster local and international cooperation.A notable aspect of this collaboration will be the Nordic Blockchain Conference 2025, which is positioned as the largest blockchain and Web3 event in the region. This article was written by Tareq Sikder at www.financemagnates.com.
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What Trump's New Crypto Project Plans with a Dollar-Backed Stablecoin
Nov 5, 2024 | 02:25 amA new crypto venture has emerged as former President Donald Trump's family launches World Liberty Financial, aiming to create a U.S.-dollar-backed stablecoin. This comprehensive guide explains their plans to enter the cryptocurrency market and compete with established players like Tether and USDC.Donald Trump's Crypto Project Launch and Initial FundingWorld Liberty Financial's entry into the crypto space has garnered substantial attention, though initial fundraising efforts have fallen short of expectations. Despite aiming to raise $300 million, the project has secured only $14 million in its initial token sale, with just 4.7% of available tokens purchased by investors. This modest start hasn't dampened the team's ambitions to create a significant presence in the stablecoin market. The project is now reportedly planning to develop a stablecoin pegged to the U.S. dollar, as reported by Decrypt.Trump Crypto Project World Liberty Plans to Issue Stablecoin, Sources Say (via @decryptmedia) https://t.co/UrMN4tEhKZ— jonnycomp (@jonnycomp344502) October 29, 2024Although the WLFI token has not been warmly received, the proposed stablecoin is expected to have a better chance of success.The Stablecoin VisionThe project's cornerstone is the development of a cryptocurrency pegged to the U.S. dollar, entering a market dominated by established players like Tether and USDC. The World Liberty team envisions their stablecoin as more than just another digital asset – it's positioned as a crucial tool for maintaining U.S. dollar dominance in the digital economy.The stablecoin will maintain a 1:1 ratio with the U.S. dollar through proper collateralization, a feature that distinguishes it from failed experimental approaches that have plagued the industry. This conservative approach reflects lessons learned from past market failures, particularly the collapse of Terra in 2022, which resulted in billions in losses.Technical Leadership and Market PositionA significant boost to the project's credibility came with the appointment of Rich Teo, former co-founder of Paxos, as the lead for stablecoin development. Teo's experience with the dollar-backed Paxos Standard Token brings valuable expertise to the initiative. Under his guidance, the team is meticulously working on security protocols and regulatory compliance before market launch.Rich Teo, who helped build another successful digital money company called PaxosBarron Trump as the "Chief DeFi Visionary"Eric and Donald Trump Jr. as "Web3 Ambassadors"Donald Trump as the "Chief Crypto Advocate"Market Context and Competitive LandscapeThe timing of World Liberty Financial's entry coincides with unprecedented growth in the stablecoin market. Tether's recent performance, reporting a 5.2 billion profit in the first half of 2024, demonstrates the sector's potential. The total stablecoin market cap exceeding $172.8 billion indicates substantial room for growth and competition.Governance Structure and Token EconomicsThe project's governance model centers around the WLFI token, which grants holders voting rights on platform decisions. The ownership structure reveals a significant concentration among insiders, with 70% held by the Trump family and associates, 20% allocated to founders, and 10% available to the public. This distribution has raised both interest and concerns among potential investors.The ownership of the project tells us a lot about who's in control:Integration and Development StrategyWorld Liberty Financial is building its platform on established infrastructure, utilizing the Aave V3 protocol on Ethereum. This strategic choice allows for seamless integration with existing DeFi platforms while providing a foundation for mass adoption. The team emphasizes user accessibility, with Eric Trump stating their commitment to making the platform "intuitive and user-friendly."The project plans to integrate with:Major crypto exchangesDeFi platformsBitcoin trading pairsStablecoin and payments networksFuture Outlook and Market ImpactAs the project progresses toward its planned launch in the first half of 2025, several critical factors will influence its success. The team must navigate regulatory requirements, secure additional funding, and build market trust. The project's association with the Trump name has generated significant attention, potentially providing what one expert called "the most free marketing that any crypto company could ever get."The development team is prioritizing safety and regulatory compliance, recognizing the importance of proper oversight in the stablecoin sector. This cautious approach reflects an understanding of the regulatory scrutiny faced by cryptocurrency projects, particularly those involving stablecoins.To Sum UpWorld Liberty Financial represents an ambitious attempt to merge traditional financial authority with cryptocurrency innovation. While the project faces significant challenges, including funding shortfalls and intense competition, its unique positioning and high-profile backing make it a noteworthy development in the cryptocurrency landscape. As the team works toward their launch, the crypto community watches closely to see if this venture can successfully bridge the gap between traditional finance and the digital asset ecosystem.The success of this initiative could significantly impact the future of stablecoins and decentralized finance, potentially reshaping how digital assets interact with traditional financial systems. However, the project's ultimate success will depend on its ability to execute its vision while maintaining regulatory compliance and building market trust.FAQWhat is Trump's crypto project planning with a dollar-backed stablecoin?World Liberty Financial, backed by the Trump family, is developing a U.S.-dollar-backed stablecoin that aims to maintain the dominance of the U.S. dollar in digital finance. The project has already launched its WLFI governance token and raised $14 million, with plans to create a fully collateralized stablecoin that maintains a 1:1 peg with the U.S. dollar. The project will operate on the Aave V3 protocol and is being developed under the leadership of former Paxos co-founder Rich Teo.What makes this stablecoin different from others?The project emphasizes: Full dollar collateralization, integration with decentralized finance platforms and association with the Trump brand. What is more, it focuses on maintaining U.S. dollar dominance.It enters a market dominated by established players like Tether and USDC, which have market caps in the billions and proven track records. This article was written by Damian Chmiel at www.financemagnates.com.
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Wall Street's Bitcoin Miners Boost Production, but Revenue Falls for 4th Straight Month
Nov 4, 2024 | 23:20 pmSeveral leading U.S. publicly listed mining companies from Wall Street, including TeraWulf, Riot Platforms, CleanSpark, and MARA, posted production gains in October.Although for some, the BTC production results were the highest since the halving, the recent JPMorgan report reveals a continued decline in industry-wide revenue and profitability. The report, which highlights a record-high network hash rate, points to increasing operational challenges and intensifying competition across the sector.TeraWulf Sees Modest Gains with Efficiency ImprovementsTeraWulf (NASDAQ: WULF) reported the mining of 150 Bitcoins in October, maintaining a daily average of approximately 4.8 BTC. The firm’s operational self-mining capacity rose 62% year-over-year to 8.1 EH/s. Efforts to reduce energy costs yielded an average power expenditure of $36,789 per BTC, around $0.048 per kWh, a factor influenced by TeraWulf's continued investment in zero-carbon energy sources. Upgrades to Lake Mariner facility’s mining fleet are underway, with older models being replaced by more efficient S19 XP miners, aiming for a self-mining hash rate of 8.7 EH/s by year-end.“October marked another productive month, with TeraWulf mining 150 bitcoin and sustaining an average daily production of around 5 bitcoin,” said Sean Farrell, Senior Vice President of Operations at TeraWulf. “In line with our previously outlined plans, we are accelerating the transition to more efficient mining hardware by replacing older miners at Lake Mariner with S19 XP models.”Riot Expands Hash Rate with Corsicana FacilityRiot Platforms (NASDAQ: RIOT) reported a notable production increase with 505 bitcoins mined, a 23% rise from September, and deployed hash rate growth to 29.4 EH/s, driven by enhancements at its Corsicana, Texas facility. It is worth noting, that October’s production output was the highest since the Bitcoin halving event in April.Riot’s Corsicana site, projected to reach a capacity of 1 gigawatt upon completion, underpins the company's long-term growth plans. Average power costs per kilowatt-hour in October increased slightly to 3.9 cents due to rising energy prices. Riot's strategy includes further deployments at Corsicana and upcoming investor presentations to discuss its expansion."In October, Riot achieved a new post-halving milestone in production, with 505 Bitcoin mined in the month," said Jason Les, CEO of Riot. "This 23% increase in production from September is a reflection of both the ongoing growth in our deployed hash rate and of the efforts to improve our operational efficiency.”MARA Eyes Record Capacity with 40.2 EH/s Hash RateAs Finance Magnates already reported yesterday (Monday) MARA (NASDAQ: MARA) also reported the highest production since April’s halving, mining 717 Bitcoins, a 2% rise from the prior month. The company’s energized hash rate grew 14% to 40.2 EH/s, moving it closer to its goal of 50 EH/s by year-end. MARA's focus on optimizing transaction fees, which accounted for approximately 5% of its October BTC production, further contributed to profitability amid high network competition. MARA continues to rely on proprietary platforms like Slipstream and MARAPool to capitalize on increased transaction fees.“Despite a slight month-over-month decrease in block wins, driven by the growth in global hash rate and the resulting rise in difficulty level, BTC production increased by 2% to 717 BTC,” said Fred Thiel, MARA's Chairman and CEOCleanSpark Accelerates Growth with New Facilities and AcquisitionsCleanSpark (NASDAQ: CLSK) achieved a record 655 Bitcoins mined in October, marking a 32% month-over-month increase. This growth aligns with the recent acquisition of GRIID Infrastructure and further expansions in Tennessee and Wyoming. CleanSpark’s mining fleet now stands at an operational hash rate of 31.3 EH/s, supported by its Knoxville facilities, which contribute an additional 5 EH/s. CleanSpark's power costs averaged 20.89 J/Th, and the company anticipates additional capacity from turnkey operations in Mississippi by year-end."October was another remarkable operational month in the books for CleanSpark,” said CleanSpark CEO Zach Bradford. “There are just a few short months remaining in the calendar year, but we have a handful of projects under construction that we expect to come online and hashing before the start of 2025.”Mining Revenue Declines for Fourth Consecutive MonthDespite increased production, JPMorgan’s report indicated that BTC mining revenue and gross profit fell for the fourth consecutive month in October. Daily block reward gross profit dropped 2% to its lowest level on recent record, as miners earned an average of $41,800 per EH/s in daily block rewards - 1% less than in September. The bank noted that the monthly average hashrate for the Bitcoin network surged to a record 702 EH/s, marking a 9% increase from the prior month and 62% year-over-year, contributing to higher mining difficulty and operational strain across the industry.Transaction fees, which rose as high as 60% of the block reward in late October, provided some revenue relief for miners, though JPMorgan emphasized that these fees remain variable. In terms of market performance, the 14 publicly listed Bitcoin mining firms from Wall Street tracked by JPMorgan, including companies with exposure to high-performance computing (HPC), saw a collective 14% rise in total market cap to $23.9 billion. This article was written by Damian Chmiel at www.financemagnates.com.
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Kraken Verifies $21.5 Billion in Client Assets with Latest Proof of Reserves
Nov 4, 2024 | 09:54 amKraken recently completed its latest Proof of Reserves, providing clients with a way to verify that their account balances are fully backed by on-chain assets.This verification process, performed by an independent third-party accounting firm, is based on a snapshot taken on September 30, 2024. The attestation is intended to demonstrate that Kraken securely holds client assets for supported cryptocurrencies.Kraken Attests $21.5 Billion AssetsThis latest Proof of Reserves attestation covered six widely held assets on Kraken’s platform: Bitcoin, Ethereum, Solana, USD Coin, Tether, and XRP. The assessment included clients’ spot and margin positions, futures balances, and on-chain staked amounts of eligible assets, specifically ETH and SOL. In total, the attestation accounted for over $21.5 billion in client assets. Kraken made these results available on November 1, 2024.Kraken introduced the Proof of Reserves system in 2014 and has committed to regular attestations since January 2022. The process is designed to reassure clients that Kraken’s holdings are fully reserved with in-kind assets. Clients who held any of the supported assets as of the snapshot date can personally verify their balances are backed by logging into their Kraken Pro accounts.2024 Proof of Reserves has been completed by @krakenfx Our latest Proof of Reserves covered the most widely held cryptocurrencies on the platform. It included the spot positions, open margin positions, futures balances and on-chain staked amounts of eligible assets. In total,…— Nick Percoco (@c7five) November 4, 2024Merkle Tree Ensures VerificationTo conduct the Proof of Reserves, Kraken sums all client liabilities and provides a method for clients to verify that their account and balance details were included in this total. A third party then attests to Kraken’s control over on-chain assets in amounts that exceed these liabilities.The process uses a Merkle Tree to represent individual account balances through encrypted, unique hashes. These hashes are combined into a single Merkle root hash that represents the total client balances covered. This approach allows for verification without exposing unencrypted data. Kraken again engaged The Network Firm, a registered CPA firm specializing in cryptocurrency attestation, to confirm it has control over the wallets holding these client balances.“As with our previous Proof of Reserves, clients can now download the full path within the Merkle Tree, from their account to the root. They can review its construction, gain a better understanding of how Kraken’s Proof of Reserves process works and personally verify the value and validity of the root hash included in the report,” Kraken stated. This article was written by Tareq Sikder at www.financemagnates.com.
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Wall Street Bitcoin Giant MARA Flexes Mining Muscle with 14% Hashrate Surge
Nov 4, 2024 | 05:41 amMARA Holdings (NASDAQ: MARA), the publicly listed Bitcoin miner from Wall Street, reported mining 717 BTC in October, marking its strongest monthly production since April's halving event. The crypto mining giant continues expanding its operations toward year-end targets.MARA Posts Strong Bitcoin Mining Performance in October, Hashrate Jumps 14%The company's energized hashrate reached 40.2 exahashes per second (EH/s) last month, representing a 14% increase from September levels. Despite winning slightly fewer blocks due to rising network difficulty, overall bitcoin production grew 2% month-over-month.“Despite a slight month-over-month decrease in block wins, driven by the growth in global hash rate and the resulting rise in difficulty level, BTC production increased by 2% to 717 BTC,” said Fred Thiel, MARA's Chairman and CEO. Transaction fees provided a notable boost to October's results, accounting for approximately 5% of total Bitcoin produced. Two significant transactions generated fees of 3.217 BTC and 2.665 BTC respectively, highlighting the potential upside from MARA's proprietary mining technology platforms.“We believe that our proprietary technology platforms such as Slipstream and MARAPool, our proprietary mining pool, allow us to capture all potential benefits and take advantage of higher transaction fees as they arise,” added Thiel.As of October 31, MARA held 27,562 Bitcoin in its treasury, including 4,499 restricted BTC. The company maintained an average daily production rate of 23.1 BTC throughout October.The company informed two weeks ago, that it acquired a $200 million line of credit. The company’s credit facility is backed by a segment of its cryptocurrency holdings, underscoring the increasing adoption of cryptocurrency-backed financing within the corporate sector.MARA’s October 2024 #Bitcoin Production Update is here:- Energized Hash Rate Increased 14% to 40.2 EH/s- 717 Bitcoin Produced in October, 2% Increase M/M- Transaction Fees Accounted for 5% of Total Bitcoin ProducedRead the full report: https://t.co/9kfGlNJqFX pic.twitter.com/5w7xxpl7Be— MARA (@MARAHoldings) November 4, 2024Bitcoin Production Costs Hit $49,500Although the production numbers are rising, MARA and other publicly listed Bitcoin miners from Wall Street are contending with rising production expenses, with the average cost to mine one Bitcoin reaching $49,500 in the second quarter. When including depreciation and stock-based compensation, this figure escalates to $96,100 per Bitcoin, significantly impacting profit margins. CoinShares' recent report notes that the industry is facing substantial challenges this year, with declining revenues and hash prices. Increased market activity has elevated mining difficulty to record levels, further exacerbating production costs. In response to these pressures, many mining operations are adjusting their business strategies. Some are diversifying into artificial intelligence and high-performance computing services to offset the financial strain caused by escalating production costs.A comparative study between Bitcoin mining and direct investment highlights key financial dynamics (infographic above). A typical 1 MW mining project, using advanced equipment like the Canaan Avalon A1566, demands around $740,000 upfront. Assuming Bitcoin prices reach $130,000 by late 2026 and electricity costs remain at $0.045 per kilowatt-hour, operators could recover their initial investment in approximately 27 months. This article was written by Damian Chmiel at www.financemagnates.com.
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Kraken Boosts Australia Presence after Setback: Launches Derivatives Trading
Nov 3, 2024 | 23:29 pmKraken, which previously violated Australian financial market rules by offering fiat-based margin products, has revamped its services in the country by offering crypto-based derivatives products for local wholesale clients.Limited to Wholesale ClientsAnnounced yesterday (Sunday), the American exchange highlighted that the new products are being offered under its local entity, an Australian financial services-licensed broker. The derivative products are available only to eligible Australian wholesale clients.The exchange noted that qualified clients will have access to over 200 tradable assets. The derivatives platform will also offer multi-collateral support with fiat, stablecoins, and cryptocurrencies.Hey Australia 🇦🇺 – big news! We are now offering access to crypto-based derivatives for eligible wholesale clients via our Australian financial services licensed broker.Read more here:https://t.co/beFhgGaGGm pic.twitter.com/wl1jbfMVjE— Kraken Exchange (@krakenfx) November 3, 2024“Australian wholesale clients are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken’s high-security standards,” said Jonathon Miller, Kraken’s GM for Australia and Rest of World.Breached Aussie RulesHeadquartered in California, Kraken faced a setback in Australia when the local regulator alleged that the crypto exchange violated regulations by offering margin trading products. Although Kraken called the action “surprising and disappointing,” an Australian court sided with the regulator, ruling that the exchange had indeed violated local rules. However, the court order specified that only Kraken's fiat-based margin products breached regulations, not the crypto-based products.Notably, the breaches were specifically related to products offered to Kraken's retail client base, not to wholesale clients.Kraken continued to expand its presence in Australia by bringing custody services to institutional clients in the country, as well as in the United Kingdom.“Our licensed broker offering is a testament to our ongoing commitment to regulatory compliance and to bringing exciting crypto products to market,” Miller added, “that can truly meet institutional demand for crypto assets.”Last month, the American exchange also announced the launch of its new global derivatives venue regulated by the Bermuda Monetary Authority. It expanded its presence in Europe with the acquisition of Dutch crypto broker BCM.Meanwhile, Kraken is contesting actions by the US Securities and Exchange Commission, which accused the exchange of operating an unregistered securities exchange, broker, dealer, and clearing agency. Furthermore, the exchange was accused of commingling customers’ money and crypto assets with its own. Kraken recently responded to the regulator, arguing that crypto assets are not “illegal securities” and seeking a jury trial. This article was written by Arnab Shome at www.financemagnates.com.
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US Elections 2024 Countdown: Polymarket Bettors Push Harris Closer to Trump
Nov 3, 2024 | 22:36 pmThe US Presidential election is only a day away. Although current Vice President Kamala Harris started on the back foot in her race against former President Donald Trump, her odds on Polymarket have narrowed significantly recently.Harris Leads Polls, but Trump Is Bettors’ FavouriteThe odds between Harris and Trump have always been narrow in various election polls. In the New York Times poll, Harris is even ahead of Trump, though the lead is very marginal—only 1 percentage point. A similar sentiment can be seen across other US election polls.However, in the betting markets, where real money is involved, things are different. Polymarket, the largest blockchain-based betting market, keeps Trump ahead of Harris. The gap between them widened to 66.6:33.4 in favor of Trump last week but pushed Harris up over the weekend, narrowing the gap to 56:42, still in Trump’s favor.Kamala Harris' odds continue to rise.🟥 Trump • 54.8% chance🟦 Harris • 45.1% chance1 day to go. pic.twitter.com/9RVNdokbyH— Polymarket (@Polymarket) November 3, 2024Although Polymarket is the largest election betting market, with a volume of more than $2.8 billion, it is an offshore platform. Interestingly, political betting is also available in the US. Kalshi and Interactive Brokers-owned ForecastEx are the top two platforms, but their volumes remain significantly lower than their crypto counterpart.The bettors on Kalshi are giving Trump a 52 percent odd against 48 percent for Harris on a market of over $185.6 million.However, ForecastEx is a bit different as it has two separate markets for Harris’s and Trump’s victories. Only 49 percent of the ForecastEx bettors bought the contract favoring Harris’s win, while 54 percent of the bettors favored a Trump victory. The market betting on Harris’s victory has over $80.3 million in open interest, while the one for Trump’s victory has over $74.1 million.The flip. Trump regains his lead on Kalshi. pic.twitter.com/drZWPUrgdT— Kalshi (@Kalshi) November 4, 2024The Legal Political Betting Market in the USNotably, the onshore dollar-based US elections prediction markets received a setback in opening political markets, as the Commodity Futures Trading Commission (CFTC) blocked Kalshi over concerns regarding gaming and other activities that were not in the public’s interest. However, Kalshi sued the agency, and the court sided with it; even an appeals court favored the prediction market.“Ensuring the integrity of elections and avoiding improper interference and misinformation are undoubtedly paramount public interests, and a substantiated risk of distorting the electoral process would amount to irreparable harm,” the ruling by an appeals court in favor of Kalshi stated.“The problem is that the CFTC has given this court no concrete basis to conclude that event contracts would likely be a vehicle for such harms.”Bitcoin Tests Another All-Time HighMeanwhile, the cryptocurrency market is also testing a new all-time high ahead of the US elections. Bitcoin, which has a market cap of $1.3 trillion, went past $73,000 and almost touched its previous all-time high. However, the token’s price dropped from that near-peak and is currently moving around $69,000.“The relationship between election win odds and crypto prices has fluctuated significantly, partly due to multiple non-electoral factors driving markets. The strongest correlations emerged during periods of Republican momentum—both in mid-July and in recent days,” said David Lawant, Head of Research at FalconX.However, Ether, the second-largest token on the crypto market, underperformed. The only major asset that outperformed Bitcoin was DOGE.“DOGE was the sole major asset to outperform BTC this week, perhaps due to the Elon Musk association amid election news flow,” Lawant added.“After six months of directionless trading, markets appear eager to move past election uncertainty towards firmer ground,” he continued. “Trading volumes, typically a reliable confirmation of crypto trends, are starting to show signs of life and have jumped 30–40% above their three-month average in the past couple of days.” This article was written by Arnab Shome at www.financemagnates.com.
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SEC Plans Legal Action Against Web 3 Firm Immutable
Nov 1, 2024 | 12:40 pmThe US Securities and Exchange Commission (SEC) plans to sue Web 3 gaming firm Immutable. According to the company, the regulator issued a Wells Notice to the company, adding it to a growing list of crypto firms targeted in recent years. The Wells Notice, a formal communication used to notify companies of potential regulatory action, reportedly came shortly after Immutable’s first interaction with the SEC.In a statement, Immutable faulted the regulator’s approach, stating that the notice was issued hours after an initial meeting with the regulator. According to the company, the SEC is concerned with the listing and private sales of Immutable’s IMX tokens in 2021, although the agency has yet to offer detailed findings on the alleged violations.SEC Targets ImmutableImmutable is one of many crypto companies advocating for clearer regulatory guidelines. It argued that the SEC’s current approach forces companies to guess how to comply with securities laws. The company claims it has already spent millions in legal fees to ensure compliance yet still faces regulatory scrutiny. “We’re frustrated to share that the SEC recently sent us a Wells Notice, which non-specifically alleges violations of securities law and alleged misrepresentations by the company,” the company mentioned in a statement. “With this action, the SEC is continuing to indiscriminately assert that tokens are securities.”Immutable has received a Wells notice from the SEC, the latest in their de facto policy of regulation by enforcement. We received this within hours of our first ever conversation, on a timeline clearly accelerated to land before an election.Sadly, stories like this are becoming…— Immutable (@Immutable) October 31, 2024Immutable’s CEO, alongside Digital Worlds Foundation, which issued the IMX token, also received individual Wells Notices. In response, Immutable noted that its mission of building a new property rights structure in gaming aligns with public interests, voicing confidence in the legality of its operations and the value of blockchain for Web 3 development.Calls for Clear Crypto RegulationsMany in the industry argue that the SEC’s approach creates unnecessary obstacles for crypto companies, Coindesk reported. Immutable’s statement highlights this concern, suggesting that the SEC’s investigation stems from “insufficiently researched and factually incorrect allegations,” citing a 2021 blog post as an example. Immutable's experience reflects broader sentiments across the crypto industry, as several firms have expressed frustration over the SEC’s tactics. Companies like Ripple and Grayscale have successfully challenged the SEC’s actions in court, with Ripple recently securing a victory as a judge ruled that its XRP token is not a security. This article was written by Jared Kirui at www.financemagnates.com.
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Transak Secures Dual Licenses in Canada and Delaware for Crypto Access
Nov 1, 2024 | 05:20 amTransak has obtained two licenses from Canada and the US to enhance its regulatory compliance. In the US, Transak USA LLC secured its second Money Transmitter License (MTL) from the State of Delaware, following its first MTL from the Alabama Securities Commission acquired one month prior. In Canada, Transak Canada has registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), allowing it to operate as a Money Services Business (MSB) in accordance with Canadian financial regulations.Transak Canada Gains FINTRAC RegistrationThe Canadian registration occurs amid significant growth in the Canadian cryptocurrency market. A study by the Bank of Canada indicates that around 13% of Canadians owned Bitcoin in 2021. Chainalysis reports show Canada’s improved ranking in cryptocurrency adoption, moving from 20th place in 2022 to 18th in 2024.Bryan Keane, Compliance Officer at Transak, emphasized the importance of clear regulation for the crypto industry. He stated that the company aims to provide Canadians with the ability to purchase digital assets without navigating compliance independently. “This registration involved a thorough review of our operations and close collaboration with Canadian authorities. Now, FINTRAC registration opens doors for Transak and the entire Canadian crypto community,” said Keane.With the FINTRAC registration, Canadian customers will have access to a wider range of payment options, including credit cards, debit cards, and Interac e-Transfers. This development simplifies the process for businesses and developers integrating Transak’s services, as they can now rely on a compliant infrastructure for adding crypto on/off ramps to their applications.Expands Delaware LicensesThe MTL from Delaware enhances Transak’s network of state licenses and strengthens its position as a regulated MSB under FinCEN. This expansion allows residents and businesses in Delaware to use Transak’s secure platform for cryptocurrency purchases and off-ramping. The Delaware MTL ensures that Transak complies with state-specific regulations, providing a consistent and trusted experience for users.Transak plans to pursue licensure in additional states to further align with local regulatory standards. With two MTLs secured, the company aims to continue its regulatory expansion across the US, promoting Web3 adoption. Transak’s capacity to integrate with exchanges, decentralized applications, and wallets enhances its role in the decentralized economy.“This new license in Delaware underscores our commitment to building a trustworthy, secure, and legally compliant ecosystem that sets the gold standard for Web3 payments infrastructure by ensuring that users and businesses across the US have the confidence to transact freely and securely,” said Sami Start, CEO of Transak. This article was written by Tareq Sikder at www.financemagnates.com.
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Paxos Ups Its Stablecoin Bet: Launches MAS-Compliant USDG
Oct 31, 2024 | 22:20 pmPaxos has expanded its stablecoin offerings with the launch of Global Dollar (USDG), a US dollar-backed stablecoin that aligns with Singapore’s upcoming stablecoin regulations. The company claims that this stablecoin is “designed to support the needs of regulated institutions.”A Regulatory-Compliant StablecoinAnnounced today (Friday), Paxos’ Singapore-based subsidiary, which is regulated by the Monetary Authority of Singapore (MAS), is the issuer of the new stablecoin. The company will partner with global exchanges, wallets, and platforms for the distribution of the stablecoin to individuals and institutions.Initially, USDG will be available on the Ethereum blockchain, but the company plans to issue it on additional blockchains in the near future.“Enterprise interest in stablecoins has never been higher than it is today,” said Ronak Daya, Head of Product at Paxos, “but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.”(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.View the official press release here:… pic.twitter.com/G7fb9Ny9bT— Paxos (@Paxos) October 31, 2024Maintaining 1:1 ParityPaxos further clarified that it must back the new stablecoin with “only high-quality liquid assets,” including US dollar deposits, short-term US Government securities, and other cash equivalents. The stablecoin issuer is also required to maintain a 1:1 parity with the US dollar, allowing holders to redeem their tokens for fiat currency at any time.The announcement also revealed that Paxos has partnered with Singapore’s DBS Bank as its banking partner for cash management and custody of USDG reserves.Currently, the stablecoin industry is dominated by Tether and Circle. However, the potential of the industry, along with regulatory changes, has encouraged established financial services players to enter this market.Robinhood and Revolut, two prominent companies in the mainstream financial services industry, are now considering issuing their own stablecoins. Although this is not officially confirmed, the two companies reportedly aim to address the gap in Europe created by the stablecoin regulations under the Markets in Crypto-Assets Regulation (MiCA).Meanwhile, Ripple, known for its blockchain-based cross-border payment infrastructure, has also launched a stablecoin, and the UAE recently approved a dirham-pegged stablecoin. This article was written by Arnab Shome at www.financemagnates.com.
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Sygnum, Managing $4.5 Billion, Restructures Crypto Fund for Institutional Push
Oct 31, 2024 | 02:00 amThe Swiss-based digital asset banking group Sygnum has successfully converted its Yield Core crypto fund into a Luxembourg Reserved Alternative Investment Fund (RAIF) structure, moving towards institutional-grade crypto investment offerings. The fund, which manages nearly $30 million in assets, focuses on yield-generating strategies in cryptocurrency markets.Sygnum Converts $30 Million Crypto Fund to Luxembourg RAIF StructureThe transition, approved by 99% of existing investors, enhances the fund's governance framework and eliminates counterparty risk through direct asset ownership. The fund has demonstrated positive performance so far with a Sharpe ratio of 2.7 over two years.“This move not only increases investor protection and convenience but also strengthens our international distribution,” said Markus Hämmerli, Head of Liquid Strategies at Sygnum. “Yield Core’s transition into the Luxembourg RAIF structure is an important step in our ongoing efforts to provide, amongst others, best-in-class crypto yield solutions to our growing investor base.”The fund employs market-neutral strategies including lending, funding arbitrage, and liquidity provision in the crypto space. Under the new structure, it can expand into key markets such as Singapore, targeting professional and institutional investors seeking diversified yield sources.The restructuring addresses the growing demand for regulated crypto investment vehicles, particularly from institutional investors looking for alternatives to traditional fixed-income products in the current market environment. Investors can access the fund through Sygnum Bank or other custodial banks, with plans for expanded distribution in select jurisdictions.The growing interest is confirmed by 2024’s first-half report, in which the company disclosed an increase in assets under management to $4.5 billion and a 500% rise in derivatives trading volumes.“As the authorized AIFM, we are proud to support Sygnum in providing investors with a secure and regulated pathway into the virtual asset class,” said Stephan Edelmann, Managing Director of Hauck & Aufhäuser Innovative Capital. “We have not only extended Luxembourg's well-established AIF structures to this innovative field, but we have also created a unique opportunity for investors to access this emerging asset class with confidence and compliance.”EU Expansion under MiCALast month, the Zurich- and Singapore-based digital assets banking group announced that it had secured a cryptocurrency license in Liechtenstein. This license was awarded to its local subsidiary, enabling it to offer regulated digital asset services, including brokerage, custody, and banking.The services will operate under Liechtenstein’s Token and Trusted Technology Service Providers Act. With this license, Sygnum is also positioned to seek a Crypto-Asset Service Provider (CASP) license under the European Union's Markets in Crypto-Assets Regulation (MiCA) once Liechtenstein adopts the regulation, expected in the first quarter of 2025. The CASP license would allow Sygnum to expand its services throughout the European Union. MiCA, a regulatory framework tailored to the cryptocurrency sector, allows licensed companies in one country to operate across all 27 EU member states and European Economic Area countries, including Liechtenstein. Switzerland, where Sygnum is headquartered, is outside this regulatory jurisdiction. This article was written by Damian Chmiel at www.financemagnates.com.
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Wall Street Bitcoin Miner’s Net Loss Surges over 90% in Q3 2024
Oct 31, 2024 | 00:29 amRiot Platforms (NASDAQ: RIOT), the third largest Bitcoin mining company on Wall Street, reported a significantly wider net loss in the third quarter despite higher revenue, as the cost of mining each BTC soared and power-related benefits diminished.Riot Posts 93% Wider Loss as Bitcoin Mining Costs Surge Post-HalvingThe company's net loss expanded to $154.4 million, or $0.54 per share, compared to an $80 million loss in the same period last year. The deterioration came even as total revenue jumped 65% to $80 million, driven primarily by higher Bitcoin prices and increased operational capacity.The cost to mine one Bitcoin skyrocketed to $35,376 in the quarter, a dramatic shift from the negative cost of $22,741 in the same period last year. When including the BTC miner depreciation, the cost is even higher, reaching $75,506 and rising 124% from $27,484 reported in 2023.This is significantly higher than the current market average, which, according to CoinShares, stood at $49,500 last quarter. Just a month ago, BTC mining difficulty reached a record high of 92.67 trillion, further cutting into miners' profit margins.The surge reflects the impact of April's Bitcoin halving event, which cut mining rewards in half, combined with rising network difficulty and significantly reduced power credits. However, Jason Les, the CEO of the Wall Street BTC miner, tried to stay positive and looked for a brighter side in the latest report.“Riot recorded $84.8 million in revenue this quarter, representing a 65% increase over the same quarter in 2023, driven by a 159% year-over-year increase in deployed hash rate to 28 EH/s,” said Les. “This significant increase in deployed hash rate allowed us to produce 1,104 Bitcoin this quarter, in line with our Bitcoin production in the third quarter of 2023.”BTC Mining Margins Continue to FallPower credits, a crucial component of Riot's business model, dropped to $12.4 million from $49.6 million year-over-year, representing a 75% decrease. This decline significantly impacted the company's mining margins, which fell to 42% ($28.4 million) from 181% ($56.4 million) in the previous year.“Bitcoin mining cost of revenue consists primarily of direct production costs of mining operations, including electricity, labor, and insurance, but excluding depreciation and amortization,” the company added.The company also faced increased operational expenses, with selling, general, and administrative costs rising by $37.9 million, driven by higher stock-based compensation, advisory fees, and legal costs.Riot Platforms Reports Third Quarter 2024 Financial Results, Current Operational and Financial Highlights. $84.8 million in Total Revenue and Deployed Hash Rate of 28 EH/s.“I’m pleased to announce Riot’s results for the third quarter 2024, the first full quarter past the… pic.twitter.com/bbEno5GOkz— Riot Platforms, Inc. (@RiotPlatforms) October 30, 2024Riot is not the only publicly-listed Bitcoin miner from Wall Street that experienced visibly higher production costs. BitFuFu (NASDAQ: FUFU) announced a week ago that it plans to acquire a majority stake in an Ethiopian mining facility in a quest to find cheaper energy. For BitFuFu the production costs increased by 180% over the past year, shrinking the profit by 75%.Despite these challenges, Riot revised its hash rate growth projections, now targeting 34.9 EH/s by the end of 2024, down from previous guidance of 36.3 EH/s, citing delays in Kentucky facility expansion.As of September 30, Riot held 10,427 Bitcoin worth approximately $660.3 million and maintained a strong financial position with $355.7 million in cash and $190.1 million in marketable securities. This article was written by Damian Chmiel at www.financemagnates.com.
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FTX’s Nishad Singh Avoids Jail Time for Crypto Fraud: What Will Be Gary Wang's Fate?
Oct 31, 2024 | 00:05 amThe cooperation of Nishad Singh, the former chief engineer at the now-collapsed FTX, with the authorities was advantageous, as he was sentenced to time served along with three years of supervised release yesterday (Wednesday). He has also been ordered to forfeit $11 billion.Singh previously pleaded guilty to six counts of fraud and conspiracy for his role in the $8 billion fraud led by Sam Bankman-Fried, the former CEO of the exchange, who is now serving a 25-year prison term. Singh faced a possible 75-year sentence but chose to cooperate with the investigation and testified against his former boss, Bankman-Fried.Why Did Former FTX Chief Engineer Nishad Singh Receive No Prison Time?*Limited Involvement in the FTX Fraud*Singh reportedly did not learn that Alameda was misappropriating funds from FTX until September 2022, just two months before the collapse. By then, the bulk of the $8… pic.twitter.com/nSQHXLWtUb— FTX Historian (@historian_ftx) October 30, 2024The Sentencing of FTX FelonsBankman-Fried, who orchestrated FTX's dubious practices along with its affiliate Alameda Research, became a central target of the prosecutors and was the first to receive sentencing in connection with the case. He recently appealed his conviction, alleging judicial bias.Other senior associates, including Singh, also pleaded guilty and assisted in the investigations against the FTX founder. Caroline Ellison, who was Bankman-Fried’s former girlfriend and the CEO of Alameda, served as a key witness in the prosecution of the FTX founder, receiving a two-year prison term.Ryan Salame, the former co-CEO of FTX, also pleaded guilty but did not testify against Bankman-Fried. He received a seven-and-a-half-year prison sentence, sparking attention with an unusual LinkedIn update regarding his imprisonment.Only the sentencing of Gary Wang, the co-founder and former technology chief of FTX, remains, scheduled for November 20.Limited Involvement of Singh“You did the right thing,” New York Judge Lewis Kaplan stated during Singh’s sentencing. “You immediately and truthfully, as far as I can see, fully disclosed to the government the wrongdoing you were aware of, which they quite clearly were not.”The judge also noted that Singh’s role in the illegal activities of FTX was “more limited than, certainly, Bankman-Fried and Ellison.” Prosecutor Nicolas Roos also commended Singh before the judge for coming forward.According to Singh’s lawyer, Andrew Goldstein, his client became involved in Bankman-Fried’s scheme at a later stage, after nearly all the billions of dollars in customer funds had already been misappropriated. This article was written by Arnab Shome at www.financemagnates.com.
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Q3 Slowdown Hits Coinbase, But It Still Pledges $25M for Political Funding
Oct 30, 2024 | 23:03 pmCoinbase (Nasdaq: COIN) missed Wall Street’s Q3 2024 revenue estimate of $1.26 billion, reporting $1.2 billion. Its earnings per share of $0.28 also fell short of analyst expectations of $0.45. The crypto exchange’s EBITDA of $449 million also missed expectations by $20.2 million.Coinbase Faces “Softer Market Conditions”The missed estimates impacted the company’s share price, which dropped by almost 5 percent in after-hours trading. In a letter to shareholders, Coinbase attributed the slowdown to “softer market conditions.”The total revenue of the exchange declined by 17 percent quarter-over-quarter, with transaction revenue at $573 million, down 27 percent. Although the company recorded a pre-tax loss of $121 million on its crypto asset investment portfolio, it achieved a net income of $75 million.pic.twitter.com/13VmI6CGe8— Brian Armstrong (@brian_armstrong) October 31, 2024Influencing Crypto PolicyDespite these misses, the California-based exchange committed another $25 million to Fairshake, a political action committee for the digital asset industry. The lobby group will use the funds to support pro-crypto candidates leading up to the 2026 midterm elections.We get the U.S. election results in 6 days, and no matter how you slice it, it will be the most pro-crypto congress ever.But we're not slowing down post-election.Today I'm announcing that @coinbase has committed another $25M to support Fairshake PAC, which they will use…— Brian Armstrong (@brian_armstrong) October 30, 2024“We’re not going to slow down post-election,” said Coinbase’s Chief Executive Officer Brian Armstrong during the exchange’s earnings call on Wednesday. “We know we need pro-crypto legislation passed in this country.”Notably, Coinbase is also engaged in two legal cases with the Securities and Exchange Commission (SEC): one in which the regulator accused the exchange of breaching existing regulations, and another where Coinbase is challenging the agency to clarify its crypto rulemaking.Furthermore, the exchange’s board authorised a share buyback program of up to $1 billion. This program has no set deadline, meaning the firm will repurchase shares based on market conditions.“The timing and amount of any repurchases will depend on market conditions, and any repurchases will be made at our discretion,” the shareholder letter stated. “This program does not obligate us to repurchase any specific dollar amount or number of shares of our Class A common stock, and the program may be modified, suspended, or discontinued at any time.” This article was written by Arnab Shome at www.financemagnates.com.
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Coinbase Introduces Instant Crypto Deposits with Visa Debit Cards
Oct 30, 2024 | 09:59 amCoinbase and Visa introduced real-time crypto deposits via Visa debit cards to offer instant access to digital currencies for US and EU customers. Instant Crypto TransfersThe collaboration between the two giant entities promises to improve how people manage their cryptocurrency investments. With eligible Visa debit cards, users can reportedly deposit funds into their Coinbase accounts instantly, eliminating previous delays that slowed down transfers. According to the official statement, the new feature enables crypto traders to buy, sell, or trade crypto in real-time, significantly lowering the barriers to entry and making it easier for newcomers to navigate the market."We are thrilled to be partnering with Coinbase to help service their customers’ money movement needs," Yanilsa Gonzalez Ore, the Head of Visa Direct, North America for Visa, mentioned. "Providing real-time account funding using Visa Direct and an eligible Visa debit card means that those Coinbase users with an eligible Visa debit card know that they can take advantage of trading opportunities day and night.”According to Visa, the collaboration links the cryptocurrency space with traditional financial services. It reportedly allows Visa debit cardholders to integrate their cards with their Coinbase accounts for immediate transfers.Regulatory ClarityWhile this partnership expands Coinbase's reach in both the US and the EU, regulatory frameworks in these regions play a significant role, Coindesk reported. The European Union has been proactive in establishing clearer regulations for the crypto industry, such as the recently adopted Markets in Crypto-Assets regulation.Recently, Coinbase and Tether introduced blockchain and artificial intelligence tools aimed at enhancing privacy and autonomy in decentralized space. According to the entities, the new tools seek to improve how developers interact with blockchain technology by giving them more control and privacy.The new software also allows developers to create peer-to-peer (P2P) AI applications useful across various devices, including low-cost mobile phones and high-end servers. In a statement, Paolo Ardoino, Tether's CEO, noted that the SDK is highly modular and can support different models that customize AI functions to various needs. Besides that, all data and processes run on-device to enhance by ensuring that all the aspects are decentralized and secure in the P2P infrastructure. This article was written by Jared Kirui at www.financemagnates.com.
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