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‘Ether Should Outperform Bitcoin Over the Long Run,’ Says JPMorgan

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Ether (ETH) has ascended to the apex of cryptocurrency in the last couple of weeks, taking the top spot from bitcoin (BTC).

Difference between ether and bitcoin

JPMorgan points out the difference between ether and bitcoin as it pertains to this study. Bitcoin is much more a commodity than a currency at this juncture, competing with gold as a store of value. On the flipside, ethereum is “the backbone of the cryptocurrency economy and serves as an exchange medium.” JPMorgan commented:

“To the extent owning a share of this [ether’s] potential activity is more valuable, the theory goes, ether should outperform bitcoin over the long run.”

They go on to say, “As a consequence, a higher proportion of ether tokens behave as if highly liquid than bitcoin, 11% versus 4% by some estimates over the past month.” In a market with significantly higher spot turnover, it is plausible that the underlying base of long exposure is less reliant on leverage in the form of futures and swaps.” 

In response to this grand divide between the two cryptocurrencies this month, JPMorgan has released their thoughts on why this occurred and provided three main reasons for the shift. 

JPMorgan’s reasons for ether’s resiliency 

Last week, the cryptocurrency industry was hit hard by a liquidity shock that originated in the derivatives market, according to JPMorgan. All were affected but, bitcoin was hit harder than most and much harder than ethereum. Ether’s resistance to these events is pegged as reason number one for ether’s ability to hang on while bitcoin slipped. 

“This liquidity shock originated in the derivatives market, leading to sizable liquidations. The effect was arguable greater in bitcoin futures, where liquidations of net longs since that event total 23% of the ex-ante open interest; that said ether is not behind with 17% of net long liquidations over the same period,” JPMorgan states. 

While on-screen liquidity on BTC markets continues to improve on traditional asset classes, the risk reportedly remains high. As with many other global markets, the majority of liquidity comes from traders who are high-frequency-style. These types tend to run for the hills when volatility spikes and can cause these shocks to reverberate across the industry. 

The second reason that JPMorgan points out is ether’s lack of reliance on derivatives markets to transfer, or warehouse, risk.

“In a market with significantly higher spot turnover, it is plausible that the underlying base of long exposure [in ether] is less reliant on leverage in the form of futures and swaps [than bitcoin].”

The third and final major reason for the discrepancy in BTC and ETH right now is ether has a more durable underlying demand base. 

“The ethereum network has long been characterized by a higher pace of transactions on the public blockchain than does bitcoin, likely due in no small part to increased activity on DeFi and other platforms,” JPMorgan points out. 

Based on this, JP Morgan believes that a disproportionate amount of ether tokens act as highly liquid than bitcoin. Some estimates put the number at 11% (ETH) and 4% (BTC). 

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

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Source: https://beincrypto.com/ether-should-bitcoin-over-the-long-jpmorgan/

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BIC’s Video News Show: Shiba Inu (SHIB)

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In this episode of the BeInCrypto video news show, host Jessica Walker will address Shiba Inu, which has been stealing the spotlight from dogecoin (DOGE). We’ll look at details about its launch, its prospective ecosystem, and recent price movements.

Is Shiba Inu Coin Really a Dogecoin Killer, or is There More to It?

Shiba stealing the spotlight

Dogecoin has now become so big that the world needed a “Dogecoin killer”! The Shiba Inu coin has taken the crypto world by storm in the last several days. Despite Elon Musk announcing a dogecoin mission to the moon on SNL, this other meme coin has stolen the spotlight.

Shiba Inu is up almost 1,500% in the past week, after being listed on Binance and Crypto.com. Everyone seems to think it’s dogecoin 2.0. But could this coin carve out a place for itself among the heavyweights in the crypto world? 

Vitalik owns half

Perhaps the most curious fact about the SHIB coin is that half is owned by Ethereum (ETH) leader Vitalik Buterin. He has nothing to do with the creation of the coin. But he received 50% as a gift from the creators when the coin was launched. This could quite possibly be the biggest gift in human history, as it currently stands at $8.2 billion.

This type of offering is known as an initial DEX Offering where founders release their token via a decentralized exchange. Some tokens launched under Ethereum’s ERC-20 standard, have been known to send Buterin a certain amount of their coin. This is done partially out of respect for his vision but also as a publicity tactic.

Shiba ecosystem

The other 50% of Shiba Inu is on the decentralized Uniswap network and was released through an initial DEX Offering.  It can also be used on ShibaSwap, the project’s decentralized exchange. Here, users can stake their tokens for interest via staking rewards. Shibaswap also has plans to Integrate NFTs into its platform after launch.

All-in-all, there will be three different tokens native to Shiba Inu’s platform. First, Shiba Inu, then LEASH, which supports the staking function. Finally, BONES will act as a governance token.

ShibaSwap was expected to launch at the end of April, but currently there’s no fixed date. But with over 260,000 holders, we’re pretty sure the developers will be working overtime to get things going.

Technical analysis

At the time of recording, we can see that the price is testing a support level but the uptrend is definitely intact. If it keeps going the price could be headed higher to test the record high we saw yesterday, after the coin was added to Binance.

The Shiba Coin and its soon-to-be decentralized exchange, have definitely attracted attention. And as we’ve seen with other cryptocurrencies, community enthusiasm and numbers play a key part in the rise and fall of the project. 

Should ShibaSwap launch while the attention is at its peak, and function as promised, we could see another DeFi player emerge rapidly and push for a place in the top projects by market cap. At the time of the recording, Shiba Inu is in 14th place on Coinmarketcap and has passed the $10 billion threshold.

This rapid growth has of course been seen before and price volatility is expected in the short term. But if its unique selling point of being a cryptocurrency run 100% by its community does materialize, then we could be witnessing the start of something special.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Source: https://beincrypto.com/bics-video-news-show-shiba-inu-shib/

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Crypto.com Gains Class 3 VFA License From Maltese Financial Authorities

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Crypto.com has reportedly become the first cryptocurrency platform ever to get a Class 3 VFA License. A license issued by financial authorities in Malta.

On May 12, Crypto.com posted a tweet stating their pride at this historic moment. They linked to a post on the company blog page, which outlined the license in more detail. The post described the event as “a watershed moment for the cryptocurrency industry.”

The Class 3 Virtual Financial Assets (VFA) License reinforces the relationship between Crypto.com and the Malta Financial Services Authority (MFSA). Now, affording the platform’s users with better protection under a definitive regulatory framework.

Prior to the issuance of this license, the crypto platform had adhered to Malta’s Virtual Financial Assets Act, and worked closely with the MFSA ever since.

A strict set of conditions

The license allows Crypto.com to provide services to users trading at both beginner and expert levels. Services such as executing orders on a trader’s behalf, or serving in the role of dealer on their own account. 

As one of the few countries in the European Union with a clear regulatory framework when it comes to cryptocurrency, the MFSA had a strict set of conditions for Crypto.com to meet before granting the license. Meeting those conditions gives the platform what it describes as “proof of [its] commitment to provide a secure and compliant crypto trading environment.”

Crypto.com is still waiting on a final decision from the MFSA regarding another certification. Namely, a Financial Institution License. The platform received its in-principle approval from the Maltese regulator back in November 2020.

According to Crypto.com’s latest blog post, the final approval over this license, which will allow the platform to issue electronic money and offer payment services, is still being processed.

Malta is not the only relationship Crypto.com has been carefully cultivating recently. The cryptocurrency platform forged a partnership in Italian soccer, last week. A partnership officially launching with the Hong Kong-based exchange sponsoring the Coppa Italia final between Atalanta and Juventus.

While this is by no means a first for Crypto.com in terms of sponsorship deals in sport, their partner, Lega Serie A, expressed pride at being “the first football league to step into the world of cryptocurrency.” A collection of NFTs will commemorate the collaboration. The series will reportedly feature match highlights and the trophy among other things.

Prior to this, Crypto.com has also collaborated with the Aston Martin Cognizant Formula One Team, also with a collection of NFTs. In addition, back in March, they partnered with hockey team The Montreal Canadiens.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Dale Hurst is a journalist, presenter, and novelist. Before joining the Be In Crypto team, he was an editor and senior journalist at a news, lifestyle and human-interest magazine in the UK.

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Source: https://beincrypto.com/crypto-com-gains-class-3-vfa-license/

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More Crypto Point-of-Sales Through MoneyGram, Coinme Partnership

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MoneyGram is partnering with Coinme to enable the cash funding and payout of digital currency purchases and sales. 

The partnership will pair MoneyGram’s mobile, API-driven payments platform with Coinme’s proprietary cryptocurrency exchange and custody technology. It will enable thousands of new point-of-sale locations throughout the United States. If successful, the partnership will expand to international markets by the second half of 2021.

“This innovative partnership opens our business to an entirely new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect bitcoin to local fiat currency,” remarked MoneyGram Chairman and CEO Alex Holmes. 

Specially designed for newcomers to cryptocurrencies, the integration is set to provide a convenient way for customers to purchase bitcoin (BTC) with cash and withdraw bitcoin holdings in cash. This could dramatically expand access to bitcoin, as there are currently fewer than 20,000 cryptocurrency kiosks in the world.

“MoneyGram has spent more than 80 years building one of the world’s largest P2P payment networks,” said Neil Bergquist, Coinme CEO. “By integrating its global infrastructure with our licensed crypto exchange technology, we can enable the purchase and sale of cryptocurrencies across its system using cash”.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Source: https://beincrypto.com/more-crypto-point-of-sales-through-moneygram-coinme-partnership/

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Coinbase, Softbank Boost Funding of Brazil-Based Money Management Firm

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Brazilian money management firm focused on cryptocurrencies, Hashdex, has raised $26 million in funding.

Prominent investors included SoftBank Group Corp. and Coinbase Ventures, an arm of the U.S.’s biggest cryptocurrency exchange. However, a majority of the funds came from venture capital firm Valor Capital Group. Other investors included Brazil’s Igah Ventures, Globo Ventures, and Canary.

Hashdex history

Founded in 2018 by former Microsoft Corp. executive Marcelo Sampaio and Bruno Caratori, Hashdex is based in Rio de Janeiro. Currently, the firm has around 4 billion reais (roughly $763 million) under management. Headcount will reportedly rise from 25 to 100 by the end of the year, bolstered by plans for opening of new offices outside Brazil.

“Investors are still getting to know crypto and we see room to offer more products in Brazil,” said CEO Sampaio.

Just last month, Hashdex launched its Nasdaq Crypto Index Fund. The ETF debuted on April 26, on Brazil’s B3 exchange under the ticker symbol HASH11, with 615 million reais. The initial offering was led by Genial, with BTG, Itaú, and Banco do Brasil.

The ETF tracks the Nasdaq Crypto Index (NCI), co-developed with Nasdaq, to represent the institutionally investable crypto asset market.

When it launched, Sampaio highlighted the exposure the ETF would offer to investors in Brazil. “The arrival of HASH11 at B3 brings more comfort and security to the investor, who will have access to a basket of assets with periodic rebalancing and which follows the international safety parameters in this sector,” explained Sampaio. 

Crypto developments in Brazil

However, Hashdex’s crypto-based ETF was not the first available in Brazil. That distinction went to the Bitcoin ETF launched by QR Capital on the Sao Paulo exchange in March. The primary offering was for $500 million. While only immediately available to qualified investors, retail investors will be able to access it in June.

Meanwhile, Bitso, which services customers in Brazil, recently became the first crypto unicorn in Latin America. After raising $250 million during its Series C investment round, the company valuation rose to $2.2 billion.

Additionally, Moeda Seeds, which uses blockchain technology to serve “the unbanked and under-banking population in Brazil,” was recently accepted into Mastercard’s incubator program.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/coinbase-softbank-boost-funding-of-hashdex/

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