Connect with us

Blockchain

Baby Steps or Handcuffs? Crypto Pros Assess PayPal’s Bitcoin Play

Fintech giant PayPal confirmed its move into crypto Wednesday. Is its no-withdrawals bitcoin service too restrictive or mainstream-friendly?

Avatar

Published

on

Call it Crypto Lite – for now.

Fintech giant PayPal confirmed its long-awaited move into digital assets Wednesday, offering its 346 million users the chance to buy, hold and sell bitcoin, bitcoin cash, ether and litecoin, with the blessing of New York state regulators. 

While the cryptosphere acknowledges the bullishness of a firm the size of PayPal making a move into the space, there was also concern that the new service does not allow bitcoin or other cryptocurrencies to be withdrawn or deposited. Once you buy the coins, they stay in your account until you sell.

“Currently, you can only hold the cryptocurrencies that you buy on PayPal in your account. Additionally, the crypto in your account cannot be transferred to other accounts on or off Paypal,” states the PayPal FAQ page published with Wednesday’s announcement.

Self-custody and moving your coins around is what crypto is all about though, right?

The view from some informed takes is that while PayPal did not need to impose such restrictions, it’s probably a case of taking things by degree; a “crawl before you can walk” approach. 

Read more: PayPal Embraces Crypto, Igniting Market as Mainstream Adoption Inches Closer

As such, the current setup is being compared to Robinhood – which also offers crypto but in a confined space – but hopefully moving in the direction of Square – which started the same, but now allows limited withdrawals to non-custodial wallets.

The lack of withdrawals to self-custody and inability to transfer between accounts constituted “the highlight of the PayPal news” for Jake Chervinsky, general counsel of DeFi platform Compound, who added that such restrictions aren’t required for regulatory compliance. (Chervinsky did not immediately respond to a request for further comment.)

However, it may well be the case that PayPal is simply setting out to cater to what it perceives to be the needs of the average user, pointed out Jerry Brito, executive director of Coin Center, a Washington, D.C.-based think tank.

“Simply allowing people the ability to buy and hold and sell back crypto I imagine is something they studied,” Brito said in an interview. “It may simply be that’s what most people want to do with cryptocurrency at the moment, and the demand to move it around and transact is not as high. And if that’s the case, it’s much easier from a regulatory perspective and from a user support perspective, to simply allow that option without having the ability to transact.”

Read more: Square Puts 1% of Total Assets in Bitcoin in Surprise $50M Investment

Providing the most obvious route for people to have exposure to the asset class without necessarily getting into the more complex issues of running private keys and understanding cryptography and digital signatures is possibly what PayPal is thinking, said Charles Hayter, CEO and co-founder of data site CryptoCompare.

“Yes, if you’re a pure libertarian, it’s not ideal. But being pragmatic about bitcoin’s trajectory and global adoption penetration rate, this certainly brings more options,” Hayter told CoinDesk.

PayPal plays it safe

Brito of Coin Center agreed that to be compliant with regulations, PayPal did not perhaps need to wall its garden in, but pointed to gray areas like the Financial Action Task Force’s Travel Rule and other areas of anti-money laundering (AML) enforcement, which come into play when transferring crypto in a regulated environment.

“It’s certainly the case that it’s a much bigger hurdle to allow for sending [crypto] than not,” Brito said. “So, sort of top of the list would be the Travel Rule. People are finally developing solutions to comply with that but they are not there yet. This will be a relatively small part of PayPal’s business so the easiest thing to do is not engage in transfer and take on that compliance risk.”

Read more: PayPal, Venmo to Roll Out Crypto Buying and Selling: Sources

Stephen Palley, a partner at the Anderson Kill law firm, said the functionality of the PayPal crypto announcement is not important compared to what it says about crypto, the asset class.

“They’re going to be cautious, and they’re going to roll it out slowly,” Palley told CoinDesk, adding: 

“My takeaway is that the importance is not the functionality. The importance is from the normalization of the asset class. If PayPal is saying you can somehow use this via our platform, however it works, that takes it one step away from the notion that this is just for criminals.”

PayPal did not return requests for comment.

Disclosure

Source: https://www.coindesk.com/baby-steps-or-handcuffs-crypto-pros-assess-paypals-bitcoin-play

Blockchain

Coinbase Pro to Add Bitcoin Trading Pairs for Blue Chip DeFi Tokens

After a significant cooling-off period, the DeFi market appears to be moving towards another round of massive price movements. Coinbase Expands Order Book with DeFi/BTC Trading Pairs Coinbase announced the order book expansion via a blog post published on Dec. 1. According to the announcement, Coinbase Pro is set to offer new order books for … Continued

The post Coinbase Pro to Add Bitcoin Trading Pairs for Blue Chip DeFi Tokens appeared first on BeInCrypto.

Avatar

Published

on

Coinbase Pro is set to offer more traders the ability to trade popular DeFi tokens against Bitcoin (BTC) as part of its latest order book expansion.

After a significant cooling-off period, the DeFi market appears to be moving towards another round of massive price movements.

Coinbase Expands Order Book with DeFi/BTC Trading Pairs

Coinbase announced the order book expansion via a blog post published on Dec. 1. According to the announcement, Coinbase Pro is set to offer new order books for popular DeFi “coins” including Yearn.Finance (YFI) and Uniswap (UNI).

The order book expansion plan comes on the heels of the platform discontinuing margin trading due to pressure from regulators.

Starting from Dec. 8, Coinbase Pro will allow users to trade some blue-chip DeFi coins against bitcoin. Apart from YFI and UNI, the other tokens involved are Chainlink (LINK), Algorand (ALGO), and Loopring (LRC). The plan will also introduce support for the Zcash (ZEC)-BTC trading pair.

According to Coinbase Pro, the roll-out of the expansive plan will proceed via three stages; post-only, limit only, and full trading. It added:

“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book(s) in one state for a longer period of time or suspend trading as per our trading rules.”

The announcement says Coinbase Pro will provide regular updates as to the status of each order book. These tokens are already part of the platform’s trading catalog and tradable against the USD Coin (USDC). Coinbase Pro first listed YFI back in early September.

DeFi Tokens Post Gains

Coinbase Pro’s announcement comes amid a resurgence in DeFi token prices within the general bullishness of the crypto market.

Indeed, data from DeFi aggregator DeFi Pulse shows an almost 30% increase in total value locked (TVL) in the Ethereum DeFi space. As of press time, TVL is only $250 million shy of its all-time high (ATH) value.

As previously reported by BeInCrypto, some crypto traders tip DeFi/BTC pairs to post between 50% and 100% gains in the short term. YFI is up over 180% in the last 30-day trading period.

Share Article

Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.

Follow Author

Source: https://beincrypto.com/coinbase-pro-to-add-bitcoin-trading-pairs-for-blue-chip-defi-tokens/

Continue Reading

Blockchain

SUSHI Breaks Out and Sets Its Sights on $3

The breakout from the parallel channel suggests that SUSHI is likely in an impulsive move and will move higher towards the resistance levels outlined below. November Increase The SUSHI price has been moving upwards since it reached an all-time low of $0.47 on Nov 4. In the month of November alone, SUSHI increased by 154%. … Continued

The post SUSHI Breaks Out and Sets Its Sights on $3 appeared first on BeInCrypto.

Avatar

Published

on

The SushiSwap (SUSHI) price increased significantly in November and has begun December with another breakout.

The breakout from the parallel channel suggests that SUSHI is likely in an impulsive move and will move higher towards the resistance levels outlined below.

November Increase

The SUSHI price has been moving upwards since it reached an all-time low of $0.47 on Nov 4. In the month of November alone, SUSHI increased by 154%.

Furthermore, December began with another breakout, one which took SUSHI above the $1.75 area, which previously acted as a resistance.

At the time of writing, SUSHI was trading very close to the $2.35 resistance area, which is the 0.618 Fib retracement level of the most recent drop. If a breakout occurs, SUSHI could rally all the way to $3.50.

Chart By TradingView

A closer look at the movement reveals that SUSHI has been following an ascending support line since it reached the previous low on Nov. 5. The support line was accentuated by a validation on Nov. 26 which created a bullish hammer.

Technical indicators are bullish and support an eventual breakout above the $2.35 resistance area.

Chart By TradingView

Channel Breakout

The shorter-term two-hour chart shows that SUSHI has broken out from an ascending parallel channel, a sign that the move is impulsive instead of corrective.

Afterward, it has somewhat retested the resistance line of the channel before moving upward again.

Therefore, the channel breakout supports the possibility that SUSHI will continue increasing and break out above the previous resistance levels.

Chart By TradingView

However, the RSI shows a significant bearish divergence, indicating that SUSHI is likely to decline once more in the short-term before resuming its upward movement.

Chart By TradingView

Wave Count

Cryptocurrency trader @TheTradingHubb outlined a SUSHI chart, showing a bullish movement that would take the price all the way to $3.20.

Source: Twitter

Since the previous Nov. 5 low, the SUSHI price has likely begun a bullish impulse (shown in orange below), currently trading in an extended wave three. The sub-wave count is shown in black.

The most likely target for the top of wave three is found between $3.75 and $3.91 (highlighted in orange), the 2.61 Fib extension of wave one (orange), and the 4.61 Fib extension of sub-wave one (black).

On the other hand, the most likely top for the end of sub-wave three is found between $2.50 and $2.60 (highlighted in black), the 1.61 fib extension of wave one and the 2.61 extension of sub-wave one.

SUSHI Chart By TradingView

Conclusion

To conclude, the SUSHI price should continue increasing towards the resistance levels at $2.35 and possibly $3.80. While short-term declines could occur, it seems that SUSHI is in a bullish impulse.

For BeInCrypto’s latest Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Source: https://beincrypto.com/sushis-breaks-out-and-sets-its-sights-on-3/

Continue Reading

Blockchain

OKEx CEO Explains Exchange’s Recent Withdrawal Suspension

Issues with one of the exchange’s private key holders forced the cryptocurrency exchange to pause withdrawals for around five weeks in October. In the recent AMA, Hao reiterated previous apologies for the stress and uncertainty the sudden suspension caused. He also detailed updates to the platform’s private key management system, as well as a new … Continued

The post OKEx CEO Explains Exchange’s Recent Withdrawal Suspension appeared first on BeInCrypto.

Avatar

Published

on

Jay Hao recently hosted an ‘Ask Me Anything’ session to address user concerns regarding OKEx’s suspension of withdrawals.

Issues with one of the exchange’s private key holders forced the cryptocurrency exchange to pause withdrawals for around five weeks in October.

In the recent AMA, Hao reiterated previous apologies for the stress and uncertainty the sudden suspension caused. He also detailed updates to the platform’s private key management system, as well as a new user rewards package.

Jay Hao: Apologetic to Users Over Withdrawal Suspension

Last week, OKEx CEO, Jay Hao, took questions from the platform’s users during an AMA on the exchange’s Telegram channel. During the session, Hao reiterated that user assets were never at risk but extended apologies for the stress and inconvenience the uncertainty had caused.

As BeInCrypto reported previously, the major exchange had halted user withdrawals on Oct. 16. User assets remained trapped on the platform until it reinstated withdrawals on Nov. 26.

OKEx explained in a previous blog post that one of the platform’s private key holders had been assisting Chinese authorities in an investigation. The exchange had apparently not considered such incidents as part of its contingency plan.

During the recent AMA, Hao noted that trading activity had understandably declined on the exchange over the five-week suspension period. Upon the resumption of withdrawals, many users immediately withdrew funds from the exchange:

Despite the clear signs of reduced user confidence, Hao praised “supportive and loyal” customers that had reached out with messages of support.

He also commented on the growing maturity of the wider cryptocurrency market – apparently evidenced by BTC’s strong price performance over the period.

OKEx Rolls Out New User Rewards

To prevent potential future incidents leaving users unable to access their funds, the exchange has reportedly updated some of its internal processes. These include the way it generates and backs up private keys as well as the backup of its master private keys.

Hao further commented on reports of on-chain outflows from OKEx wallets prior to the resumption of service. He claimed that wallets identified as belonging to the exchange were mislabelled, leading to incorrect reports of funds leaving the platform.

The CEO went on to state that the investigation involving the private key holder “has no relation to OKEx.” He added that the platform remained committed to compliance with all international regulations and that it would not be able to grow without such a commitment.

Finally, Hao detailed various reward schemes aimed at thanking customers for their continued trust in OKEx. These include rebates and waivers on trading fees, with extra perks going to those users holding the exchange’s OKB token.

Share Article

A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.

Follow Author

Source: https://beincrypto.com/okex-ceo-addresses-exhanges-recent-withdrawal-suspension/

Continue Reading

Blockchain

Decentralized Finance: What’s Hot in Q4 2020

2020 has been a strong year for the cryptocurrency industry, to say the least. With trading volumes on many exchange platforms reaching record highs, massive institutional investments aplenty, and PayPal recently launching its own cryptocurrency service the market has been sent into a meteoric uptrend.  And now, as we approach the end of the year, … Continued

The post Decentralized Finance: What’s Hot in Q4 2020 appeared first on BeInCrypto.

Avatar

Published

on

2020 has been a strong year for the cryptocurrency industry, to say the least. With trading volumes on many exchange platforms reaching record highs, massive institutional investments aplenty, and PayPal recently launching its own cryptocurrency service the market has been sent into a meteoric uptrend. 

And now, as we approach the end of the year, several sectors have begun to emerge as indicators of what to expect in the months ahead. And decentralized finance (DeFi) looks set to dominate.

Here, we take a look at what’s hot in DeFi right now.

Yield-Generating Stablecoins

With the growing interest in DeFi products and the launch of ever-more creative and capable DeFi platforms, users now have access to a wide range of DeFi protocols — many of which can be used to generate an impressive yield.

However, to obtain these impressive yields, users typically need to deposit or hold one or more volatile cryptocurrencies, which exposes them to the risk of potential losses if the market for that asset turns sour. To counter this, and produce a lower-risk option, a number of modern platforms have developed solutions that allow users to earn a yield without risking their capital — these are known as “yield-generating stablecoins”.

CHIP is arguably the most prominent of these. Developed by the BXTB Foundation, CHIP is a USD-pegged stablecoin that forms part of a two-token economy, along with an accessory and governance token, known as BXTB.

When BXTB is combined with a supported stablecoin, like Tether (USDT), users receive yBXTB (activate BXTB) and CHIP tokens in return. The CHIP tokens remain stable since they are backed by stablecoins and can be redeemed for these at any time, whereas the yBXTB tokens can be staked in the BXTB wallet app to generate a yield for holders, derived from CHIP transaction fees.

BXTB recently entered into a partnership with GameWorks Technology (GWX) and recently launched the first game incorporating the CHIP stablecoin — a physics-based Pachinko game.

Moreover, other yield-generating stablecoin platforms, like Kava’s USDX and the waves-backed Neutrino USD (USDN) have seen their use in DeFi climb in recent weeks, as an increasing number of people look to earn a yield without taking on any risk.

Non-fungible Tokens Are Back

Non-fungible tokens (NFTs) first rose to prominence in 2017 with the rise of Cryptokitties — a game that allows users to collect, breed, and trade digital cat NFTs.

Since then, they have mostly been used for representing digital game items and collectibles, almost all of which have roots in a decentralized gaming application. Despite this, interest in NFTs dwindled throughout 2018 and 2019 as the markets entered into a slump.

But now, NFTs are back with a vengeance, and the number of projects incorporating non-fungible tokens has skyrocketed — with both new and established blockchain projects launching their own NFT initiatives, while NFT trading platforms like OpenSea and Mintable have seen user interest soar.

For example, V Systems is set to launch its own NFT card collecting game, known as NFTOctopus which will be distributed via a community airdrop to VSYS 2.0 stakers. Likewise, Japan’s largest cryptocurrency exchange Coincheck is working together with Enjin to bring Minecraft NFTs to users. These will be useable within Minecraft by the end of the year, potentially exposing more than 100 million Minecraft players to the benefits of NFTs.

This dramatic resurgence in interest has seen trading volumes for NFTs climb considerably in recent months, and more than triple in the last year, while the absolute number of NFT traders reached record heights — indicating the NFT industry is about to catch its second wind.

Bringing Traditional Finance to DeFi

Since the birth of the DeFi industry, it has been widely hailed as the successor to traditional finance — that is the banks, financial institutions, and traditional payment channels we’re all accustomed to using.

But while this may or may not be the case, a wave of projects are looking to become a bridge of sorts, helping the worlds of traditional and decentralized finance interoperate, achieve some degree of synergy, or enable users to move between the two with ease.

One of these solutions is known as Venture Bond (VB), a recently announced DAO Maker product that essentially allows investors to access near zero-risk venture investments in the cryptocurrency industry. This is achieved by locking up the deposits made by Venture Bond buyers into insured DeFi and CeFi margin funding activities. The interest yielded by this is then transferred to the bond issuer to fund its development, while investors receive tokens or equity from the bond issuer — plus their initial investment back at bond expiry.

Moreover, with platforms like AllianceBlock looking to produce the world’s first decentralized capital market, and synthetic tokens looking like an increasingly promising way to bring real-world assets to the blockchain, it’s likely the theme of meaningfully connecting CeFi and DeFi will continue well into the future.

Share Article

The opinion of BeInCrypto staff in a single voice.

Follow Author

Source: https://beincrypto.com/decentralized-finance-whats-hot-in-q4-2020/

Continue Reading
Fintech2 hours ago

Everyday Uses of Chromatography

Cyber Security2 hours ago

MDR Provider GoSecure Secured $35 Million in Series E Growth Funding

Nano Technology2 hours ago

Important Traits To Look for in New Employees

Energy3 hours ago

O programa de pontos fixos para o alívio da pobreza e equiparação da Sinopec tira oito condados da pobreza, em resposta às metas de desenvolvimento sustentável da ONU

Energy3 hours ago

New Global Commission To End Energy Poverty Report Calls For Urgent Action As Part Of An Equitable Economic Recovery

Energy3 hours ago

El Programa fijo de alivio de la pobreza y nivelación para erradicar la pobreza de Sinopec saca a ocho condados de la pobreza en respuesta a los Objetivos de desarrollo sostenible de la ONU

Energy5 hours ago

Neuer Gewerbebetrieb entsteht in Trona

Energy5 hours ago

dynaCERT Inc. to Webcast Live at VirtualInvestorConferences.com December 3rd 2020

Energy5 hours ago

El programa de alivio de la pobreza y hermanamiento permanente de Sinopec saca a ocho condados de la pobreza

United States
Esports8 hours ago

Chaos confirm plan to exit CS:GO

Energy9 hours ago

B2Gold Recognized as Industry-Leading Responsible Miner

Esports9 hours ago

European Development Championship Season 1 teams announced

Energy10 hours ago

Magellan Midstream Prices $300 Million Debt Offering Due 2050

Energy10 hours ago

FMC Corporation Board Raises Dividend by 9 Percent

Energy10 hours ago

Ellomay Capital Announces Acquisition of a Biogas Facility in the Netherlands

Esports11 hours ago

FURIA, EG qualify for IEM Katowice 2021; Liquid, Chaos to Play-in tournament

Denmark
Esports11 hours ago

DreamHack Masters Winter Europe playoff bracket drawn

Blockchain11 hours ago

Coinbase Pro to Add Bitcoin Trading Pairs for Blue Chip DeFi Tokens

Blockchain12 hours ago

SUSHI Breaks Out and Sets Its Sights on $3

Brazil
Esports13 hours ago

FURIA defeat G2; advance to DreamHack Masters Winter playoffs

Blockchain13 hours ago

OKEx CEO Explains Exchange’s Recent Withdrawal Suspension

AR/VR14 hours ago

Go Behind Enemy Lines in Medal of Honor: Above and Beyond’s First Multiplayer Trailer

Big Data14 hours ago

Teen banking app Step reaches for the stars to raise $50 million

Big Data14 hours ago

Intel’s Habana starts to chip away at Nvidia in cloud with AWS deal

Big Data14 hours ago

U.S judge hearing Google case rejects government’s protective order request

Big Data14 hours ago

Uber, JetBlue join Amazon-backed Climate Pledge

Blockchain14 hours ago

Decentralized Finance: What’s Hot in Q4 2020

AR/VR14 hours ago

Rhythm of the Universe: IONIA Confirmed for Oculus Quest & PlayStation VR in 2021

Big Data15 hours ago

Simple & Intuitive Ensemble Learning in R

Cyber Security15 hours ago

Threat Actors are Targeting an Oracle WebLogic Flaw

Trending