Crypto-space news digest 01.12.2020
While the price of BTC adjusted last week, falling to $16,188, as well as the price of altcoins followed BTC, large crypto-investors remained absolutely calm.
News digest of the past week
Crypto space, as always, is filled with news. They practically do not happen during the bearish trend, but now…
So, let’s look at a quick overview of the events in the world of cryptocurrency that will leave their mark in the crypto industry.
Coinbase halts trading with margins
In a blog post, the US crypto-trading giant announced it was halting margin trading.
Citing rules imposed by the American administration and in particular the CFTC (Commodity Futures Trading Commission), Coinbase has ceased trading at the margin effective November 25, 2020. The product will be completely shut down in December when all existing margin positions expire.
Margin trading, an increasingly popular financial product in the crypt trading industry, allows the trader to borrow funds on the trading platform to cover the cost of investing in cryptocurrency, such as Bitcoin.
This allows the trader to take advantage of their position, thereby increasing profits or losses, in the event of a loss-making transaction.
US laws are very strict when it comes to trading stocks, bonds or cryptocurrencies. The rules quoted by Coinbase refer to recent guidance from the CFTC last March, regarding the “efficient delivery” of digital assets between the trading platform and the user.
Effective delivery of cryptocurrency to a buyer is when the client legally took control of the cryptocurrency, including when the client acquires cryptocurrency through margin trading or trade product.
However, margin trading is a loan, not a final acquisition. It is this point that causes the problem, which is why Coinbase prefers to stop releasing its margin trading product because of these rules, stating: “We believe that clear rules for margin credit products, need common sense.”
Coinbase customers will therefore have to turn to other trading platforms that continue to offer margin trading, such as Kraken or Binance.
Free SPARK distribution from Flare Network to users who have Ripple XRPtokens
Airdrop SPARK (FXRP) will take place soon, and applies to all XRP token holders who are eligible to receive SPARK tokens free of charge.
XRP’s recent price rise may also be due to this airdrop, organized by crypto-start-up Flare Network.
Although since the end of ICO euphoria in 2017 and Bitcoin’s last bull run, the distribution trend has gone a bit out of fashion, sometimes there are certain giveaways that make people talk about them.
Airdrop is a free distribution of cryptocurrencies or tokens under certain conditions. Often the distribution of cryptocurrency occurs when the blockchain is branched, leading to the creation of a new token, which is thus distributed among the token holders of the original block chain.
For example, the creation of Bitcoin Cash, a fork of Bitcoin, led to the distribution of BCH tokens to all holders of BTC tokens.
Airdrop Flare Network and its SPARK token are talked about because it’s a fork of Ripple XRP, and it touches all XRP coin holders who can get free SPARK tokens.
Flare Network is a new blockchain network based on the Flare Consensus Protocol, the first full-scale federal Byzantine memorandum of understanding.
Project documentation states that Flare’s own token will be a stable token with algorithmic control aimed at ensuring the predictability of network usage and security costs main login for DeFi usage cases.
Facebook could launch Libra as early as January 2021
Facebook’s dreaded stablecoin, Libra, could finally be launched as early as January 2021.
Originally scheduled for 2020, the stablecoin launch has faced an outcry from many governments and regulators who fear the emergence of this stable coin could disrupt the functioning of the international financial system because of billions of Facebook users
Faced with all these problems, the FB had to review its policy and change the Libra launch plan, resulting in a long delay pending approval from authorities to finally launch its digital currency.
The document says that stablecoin is no longer a stablecoin, and will be launched in a “limited format.”
The Libra project, which has experienced many peripetations, was supported by participants such as PayPal, Mastercard, Vodafone and eBay, and left the association. At that, September 2020, resigned one of the co-authors of the Libra project Morgan Beller.
G7 recently said it opposed launching Weights until the asset was properly regulated.
Last May Libra renamed its cryptocurrency wallet, now called Novi. The Financial Times also reports that the person involved in Novi says Novi’s wallet is “product ready,” but it will initially be deployed only in the United States and several countries Latin America.
As the crypto market is in full swing, in particular due to the arrival of institutional investors who buy Bitcoins en masse, Libra must try to speed up the process to have the ability to launch your digital asset as quickly as possible.
Free Bitcoin for shoppers on Ebay using the Lolli app
App Lolli has announced a partnership with e-commerce giant Ebay that will allow shoppers to return 1% of their purchases to BTC.
So it is a free Bitcoin for buyers who will shop on Ebay and who will be able to return 1% from every purchase made on the site’s trading floor.
Ebay has more than 127 million users worldwide and competes with sites such as Leboncoin.
Lolli is a company specializing in transferring cashback and bitcoin rewards to consumers shopping on certain e-commerce sites such as Samsung, Sephora, Microsoft, Expedia, Groupon, Godaddy, Adidas, Nike, Hilton hotels, etc.
Lolli CEO and co-founder Alex Adelman said:
“We are delighted to be partnering with eBay, the largest online auction market, and are giving more than 127 million eBay users the ability to request crypt when making their orders.
EBay has made online shopping more accessible to the world over the past 25 years. Today, we are proud to have become partners and made Bitcoin more accessible to these users, as well as continuing our mission to promote education and implementation of crypto.”
The announcement came at the right time — on Black Friday and Cyber Monday, which are periods of frenzied shopping due to promotions and significant discounts offered by electronic merchants.
BTC price is rising due to purchases on PayPal
If you don`t know yet, PayPal integrated Bitcoin as well as other cryptocurrencies into its payment platform.
Altcoins such as Ethereum, Litecoin LTC and Bitcoin Cash are now also available to all customers only from the US, but the service will be extended to the world in 2021.
Once crypto assets have appeared on PayPal, the demand for Bitcoin continues to grow, leading to an increase in its value.
In an article on its Medium blog, private equity fund Pantera Capital analyzes the increased demand for BTC following Paypal’s emergence in this market. The success is so great that Paypal bought up 70% of the new coins mined on the market.
The investment fund also mentions Square and its Cash app, which also allows you to buy Bitcoins and returns 40% of newly mined BTC.
Therefore, the advent of Paypal will reduce BTC`s offer available on the market, with the price continuing to rise in the coming months. Especially when 346 million resource users worldwide will have access to purchase on their personal accounts.
Specifically, the investment fund’s report said PayPal and the Cash app already buy more than 100% of all recently released Bitcoin.
Thus, due to its sales and marketing, Paypal is proving to be an important player in cryptocurrency adoption.
With hundreds of millions of customers, such companies will play a key role in communicating with the general public, which will be able to easily buy a crypt in a few clicks, without having to open an account on platforms such as Binance or Kraken, which can sometimes confuse them rather than familiar with trade in particular.
So the market benefits from a lot of positive news between the arrival of Paypal, institutional investors who buy Bitcoins en masse, or even movie or rap stars, investing in BTC, such as rapper Logic or Macy Williams, and the price of the asset should really continue its rise.
Bitcoin may replace future gold for BlackRock investment fund
In an interview with CNBC, BlackRock Chief Investment Officer Rick Reeder said BTC could replace gold.
BlackRock is one of the largest investment funds in the world, managing client assets worth at least $7.3 trillion! The investment giant, which is therefore increasingly watching Bitcoins and cryptocurrencies, though does not seem to have invested in crypto-assets yet.
However, Rick Reeder points out that BlackRock is still cautious about cryptocurrencies, and does not include them in its customers’ wallets. He points out that the investment fund currently does not own digital currency.
While billionaires such as Paul Tudor Jones have publicly claimed to have bought Bitcoin, investment giants are also increasingly interested in it but are still cautious about putting money its client investors.
Over time, Bitcoin will become a legitimate and recognized investment asset like gold, even if some investment funds are not yet ready to take a decisive step, such as BlackRock, which is already considering BTC as the replacement of gold in the future.