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Blockchain Bites: Coinbase’s Untraditional Investor Day and the Ethereum-EOS Arms Race in Latin America

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Coinbase will host its first investor day, New York State prosecutors won a jurisdictional dispute involving Bitfinex and a protocol arms race is unfolding in Latin America. Here’s the story:

You’re reading Blockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why they’re significant. You can subscribe to this and all of CoinDesk’s newsletters here. 

Top shelf

Not Your Traditional Investor Day
On the same day Reuters reported Coinbase is looking to go public, the exchange scheduled its first-ever investor day, for Aug. 14. Investor days can often signal a planned direct listing, Jamie McGurk, a former operating partner at Andreessen Horowitz, has said. “This will not be a traditional investor day, but rather an opportunity to hear our perspective on the cryptoeconomy and learn about Coinbase’s role in the ecosystem,” said Coinbase spokesperson Daniel Harrison.

Employment Kerfuffle
Former Tron Foundation employees are challenging a court order allowing the  foundation to settle a lawsuit through arbitration, rather than in court. The initial complaint centers around allegations of wrongful termination and hostile work practices at BitTorrent, a file-sharing service acquired by the Tron Foundation.

Appeal Denied
Bitfinex will have to face allegations from New York State prosecutors that it lost $850 million in client and corporate funds and tried to cover this hole with funds from the affiliated tether stablecoin, according to a ruling by the State Supreme Court’s Appellate Division on Thursday. The exchange’s parent iFinex initially claimed the prosecutors didn’t have jurisdiction over the Hong Kong-headquartered firm, which the appeals court rejected. The court also dismissed the argument that tether was neither a commodity nor a security.

Canaan Shakeup
Three Canaan Creative directors were dropped from the company’s business registry, prompting speculation of a power grab. For months an internal power struggle between co-founders Micree Zhan and Jihan Wu has wracked the Nasdaq-listed firm, which has been suffering growing competition and reduced profits following the Bitcoin network’s programmatic halving. 

Ethereum v. EOS
Ethereum and EOSIO are battling it out over enterprise blockchain business across Latin America. The square up pits ConsenSys in one corner and LatamLink in the other, a project backed by the Inter-American Development Bank, over which decentralized protocol will win the arms race.

Quick bites

The big picture

Venezuela’s Real Use Case
After airdropping cryptocurrency to 60,000 users in Venezuela, an AirTM survey gives a snapshot of how crypto is actually used in the economically troubled nation.

Venezuela is often a proving ground for do-gooding crypto companies and protocols. Payments network Dash, for one, famously made headway in the nation beset by hyperinflation. 

AirTM distributed approximately $300,000 worth of crypto to Venezuelans, and while only 57% of recipients engaged with the funds, many were able to successfully use the donations to buy food and medicines. Others began treating the AirTM platform as a personal bank. 

The bigger picture is coming into focus: Crypto only becomes a viable alternative to traditional financial systems if there is robust infrastructure to support it. “If Venezuela offers an example of bitcoin usage, then it appears there is user demand for bitcoin-friendly services provided by a regular fintech company,” CoinDesk’s Leigh Cuen reports.

Market intel

Balance Sheet Contractions. Bullish for Bitcoin?
As the U.S. Federal Reserve begins to unwind its balance sheet, contracting $88 billion to $6.97 trillion (-1.5%) in the week ending July 8, some crypto observers are saying this could have negative consequences for bitcoin’s price. That’s because in recent months bitcoin has been positively correlated with traditional assets, which have rallied on the back of the Fed’s balance sheet expansion. But that’s far from the consensus view. “Zooming into the details of the Fed’s balance sheet reveals the reduction has been primarily driven by a drop in demand for emergency liquidity measures, a sign the coronavirus-induced stress in the financial system has eased,” CoinDesk’s Omkar Godbole writes. 

Opinion

Blockchain Credentials, Not Credentialism
Blockchain certification can verify expertise and experience, making transferring schools and changing jobs easier. But certificate proliferation may be a bigger problem, argues Stephanie Hurder, a CoinDesk columnist and founding economist at Prysm Group. “Non-degree credentials, such as badges and certificates, in particular are rapidly multiplying because they can now be digitally transmitted and verified at a minimal cost,” she writes.

Podcast corner

Inequality, Social Chaos, Bankruptcy Rallies
From the “Robinhood Rally” to the most profit-disconnected stock market in history, these are the most interesting ideas from FinTwit last month.

Who won #CryptoTwitter?

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Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Source: https://www.coindesk.com/blockchain-bites-coinbases-untraditional-investor-day-and-the-ethereum-eos-arms-race-in-latin-america

Blockchain

Central Banks Are Getting a Prototype of CBDC

A new token based on the Public Corda network might become a prototype of Central Bank Digital Currency (CBDC) as it was designed and launched within the G20 sanctioned FATF standards.

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Oct 21, 2020 at 13:40 // News

DeFi might help to develop CBDC

A new token based on the Public Corda network might become a prototype of Central Bank Digital Currency (CBDC) as it was designed and launched within the G20 sanctioned FATF standards.

The XDC token was launched on October 20 by Cordite Society Ltd, an association aimed at building the legal structure for decentralized finance (DeFi). It has become the first ever digital currency based on the Public Corda network.

“XDC is an excellent case study that demonstrates Corda’s suitability for building stablecoins, especially in the US where they have opened up the opportunity for commercial banks to create stablecoins. We are now expecting others to use the Cordite code base to create their own stables coins or CBDCs and accelerate adoption of those currencies,”

said Ben Wyeth, Director of the Cordite Society and lead developer of XDC.

The token leverages the existing legal structure, which allows for mitigating and managing AML/CTF risks. Such an innovation proves that DeFi has indeed a bright future within the existing financial system.

Solving the interoperability problem

Currently, many central banks are exploring the possibility of launching their own CBDC, with the USA and China being the closest to actual issuance. As CoinIdol, a world blockchain news outlet, has previously reported, the Communist Republic plans on finishing their digital yuan trials and issuing it before the Olympics 2022.

While there are several possible solutions that might become a base for creating a CBDC, most countries wish to make it more centralized and controlled in order to prevent possible risks and inscribe it into the existing financial system. However, the difference in the solutions of choice might create interoperability problems, in its turn, creating numerous issues for cross-border transactions.

As the Public Corda network is open source, it can be easily adjusted for the need of CBDCs, thus creating a common network facilitating cross-border transactions. If XDC token is going to prove itself within the existing regulatory frameworks and demonstrate compliance, it might become a prototype for the common CBDC solution that would solve the expected interoperability issues.  

Source: https://coinidol.com/central-banks-getting-cbdc/

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Blockchain

Mode Adds Bitcoin to Reserves, Joining Microstrategy and Square

A UK-based fintech firm has just announced a large purchase of bitcoin using its cash reserves. Mode Global Holdings, an already bitcoin-friendly financial company, has become the first UK publicly traded firm to allocate part of its reserves to the cryptocurrency. The announcement follows those of Microstrategy and Square. As many cryptocurrency industry observers suspected, […]

The post Mode Adds Bitcoin to Reserves, Joining Microstrategy and Square appeared first on BeInCrypto.

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A UK-based fintech firm has just announced a large purchase of bitcoin using its cash reserves. Mode Global Holdings, an already bitcoin-friendly financial company, has become the first UK publicly traded firm to allocate part of its reserves to the cryptocurrency.

The announcement follows those of Microstrategy and Square. As many cryptocurrency industry observers suspected, Microstrategy’s August revelation appears to now be inspiring others.

Currency Debasement Prompts Mode to Invest 10% of Cash Reserves

First, there was Michael Saylor’s Microstrategy. Then, came Jack Dorsey’s Square. The two companies adding BTC to their balance sheets reveal an emerging appetite for bitcoin as protection against inflation and economic crises.

Mode is the latest publicly-listed company to realize bitcoin’s importance. The UK fintech firm announced the decision via press release on Wed 21 Oct.

Mode has reportedly allocated 10% of its cash reserves on its balance sheet to bitcoin. Motivating the decision is the uncertain global macro-economic outlook in the wake of the coronavirus pandemic.

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The firm says that the bitcoin allocation is an effort to protect the assets of investors from currency debasement. It mentions record low UK interest rates of 0.1% in its justification.

The company recently completed an IPO in which it raised £7.5 million. The press release states that the decision to invest in bitcoin is an effort to “maximize the value of returns” from its IPO.

Despite its recent investment foray into bitcoin, Mode is no stranger to the digital asset. It describes itself as “the bitcoin banking app.” It also sells BTC, as well as the ability to generate interest from holdings.

Another Public Company Finds Refuge in BTC

As mentioned, Mode is by no means the first publicly-listed company to take on exposure in bitcoin. Illustrating this shift is Microstrategy CEO, Michael Saylor. In 2013, Saylor publicly dismissed bitcoin on Twitter:

After eventually doing some research into the cryptocurrency this year, Saylor completely changed his mind.

Recent appearances on various industry podcasts, along with passionate tweets like that below, have quickly elevated the CEO to legendary status in Bitcoin circles:

Whereas Bitcoin previously appeared to represent a tool for criminals, it’s now emerging as a hedge against macro uncertainty. Like Mode, both Microstrategy and Square cited their own concerns about fiat currency debasement in the wake of unprecedented coronavirus stimulus packages around the world.

The nature of these businesses lends themselves to such investments. Both Square and Mode are well-accustomed to the cryptocurrency industry, having both offered BTC exposure for some time.

In the case of Microstrategy, the board of directors is just five-strong with Michael Saylor controlling around 72% of the voting power. It, therefore, would have been much more likely for Microstrategy to invest in BTC compared to other publicly-listed companies.

Some industry observers believe that this is just the beginning of a steepening institutional adoption curve.

Source: https://beincrypto.com/mode-adds-bitcoin-to-reserves-joining-microstrategy-and-square/

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Blockchain

Bitcoin Breaks the $12,000 Overhead Resistance; Here’s Why

Today, BTC has made an impressive bullish run as price hit the high of $12,300. This current uptrend has been made possible because of recent developments.

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Oct 21, 2020 at 13:03 // News

Bitcoin bulls have ensured that price holds above the critical support zones

Today, BTC has made an impressive bullish run as price hit the high of $12,300. This current uptrend has been made possible because of recent developments.

Firstly, Bitcoin bulls have ensured that price holds above the critical support zones of $11100, $11,200, and $11,300. Secondly, the bulls breached the next resistance at the $11,500 high. This gives the king coin an accelerated price movement to reach the previous highs. Fundamentally, Bitcoin is rising for the past few days because of the weakness of the US dollar. 

There seems to be a correlation between Bitcoin and the U.S Dollar Currency Index (DXY) which has been falling. Technically, the BTC price is making a series of higher highs and higher lows in the lower time frame. The uptrend will be terminated when this pattern is disrupted. On the upside, if the current momentum is sustained, the next resistance to break is the $12,400 high. A break above the $12,400 high will propel BTC to make strong moves into the higher price levels.  

Bitcoin indicator reading

Bitcoin has risen above level 73 of the Relative Strength Index period 14. This indicates that the coin is trading in the overbought region of the market. The implication is that sellers may emerge to push prices downward. However, the uptrend will continue in a strong trending market. 

BTC - Coinidol - Coinidol.png

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7,000, $6,000, $5,000   

What is the next direction for BTC/USD?

Today, Bitcoin has risen and reached the 1.272 Fibonacci extension level. That is the high of $12,147 20. Presently, the BTC price has broken this level but the upward move is doubtful. According to the Fibonacci tool analysis, the market will reverse at 1.272 extension and return to 78.6 Fibonacci retracement level.

BTC - Coinidol - Coinidol 2 chart.png  

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

Source: https://coinidol.com/bitcoin-breaks-overhead-resistance/

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