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Gemini Exchange Secures Digital Asset Insurance

The Gemini cryptocurrency exchange announced that customer assets are now covered by insurance. It comes through a consortium of global insurers who were organized by Aon.  


The Gemini digital cryptocurrency has notified customers that insurance for digital assets is now available. A news release said is was arranged by a professional services firm called Aon who organized a collective of leading insurers.

The new virtual asset insurance coverage now stands alongside FDIC insurance for U.S. Dollars.

Head of Risk at Gemini, Yusef Hussain, wrote in an October 3rdMedium post how the company was able to secure coverage “[…] after a series of due diligence roadshows with industry-leading insurers”

Hussain noted how Gemini was able to successfully show investors how it was a secure and safe exchange, and custodian, for users to buy, sell, and store virtual currencies.

Responses on the Medium post were generally positive.

One person noted how the news was great for “people who are on the fence with Crypto-investments in the US.”  Another congratulated Gemini for securing coverage “with a custodial model economically.”

Skepticism About Crypto Industry Insurance

According to Hussain, plenty of insurers have shied away from extending coverage into the cryptocurrency world due to concerns about hacks and perceptions about poor security and internal control standards.

However, Hussain says

Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions

Some are speculating Gemini has been working to secure insurance coverage in order to demonstrate to current (and potential) customers how they stand as a safe entity in a cryptocurrency world with many legal grey areas.

The Winklevoss Brothers Push Forward

The insurance announcement looks to be a good start to the month for the Gemini exchange and its co-founders Cameron and Tyler Winklevoss, who received an approval from New York regulators in September for their stablecoin.

Bitcoinist reported in early September how the Gemini dollar, tied to the USD at a 1:1 ratio, would be backed by the firm State Street.

The cryptocurrency has drawn the approval of Bitcoin Foundation founder Charlie Shrem, who remarked how the Winklevoss brothers had built what would come to be the “Golden Gate Bridge, the Verrazzano Bridge” in the field. Shrem also said the stablecoin would span across decades.

Winklevoss

Before tweeting out the Medium post on October 3rd, Gemini made note of how the Gemini dollar is now officially listed on the OEX.com digital exchange.

The exchange looks to be gearing up for major competition with other leading companies like Coinbase and Bithumb in the United Kingdom after reporting by the Financial Times alleged the platform had hired consultants to try and hash out an expansion project in the region.

Currently, Coinbase has secured an e-money license from UK regulators and enjoys a banking partnership with Barclays. Bithumb is currently planning to create an office in the UK by the end of 2018.

What do you think about the new insurance coverage for Gemini customers? Let us know in the comments!


Image courtesy of Bitcoinist archives, Shutterstock, Twitter/@GeminiTrust.

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MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

Source: bitcoin

MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

We sat down recently with Rune Christensen, the founder of MakerDAO, to discuss The DAO’s collapse and the implications it will have for Ethereum and Cryptocurrency moving forward after the soft fork. He expresses doubts at the notion that the Ethereum community holds any obligation to The DAO and other interesting viewpoints from security to hard-fork consensus.

Also Read: Pound vs Yen: The Battle Over Bitcoin Rages On

Rune Has Faith in Ethereum, Not The DAO

So Rune, Can you give Us a little bit of background on Yourself, On Maker, and the Situation The DAO’s Collapse has put Maker in?

“I’m the founder of Maker, which is an ethereum based DAO that will soon launch a stable cryptocurrency backed by smart contracts with ethereum based collateral. TheDAO’s collapse hasn’t meant much to us, we already anticipated those types of risks and knew it was something that could happen. We are going to be even more careful with security in the future, though, as we were also affected by the bug in one of our alpha stage contracts. luckily nothing was stolen, and not much money was at stake because we had made clear warnings and risk disclaimers.”

Okay,  Rune, given those circumstances, what is your position on the best of the proposed solutions, Soft Fork, hard Fork, and otherwise?

“I think the best solution is to wait for consensus. A clean 100% refund fork is most likely at this point, but also see the potential for a second blockchain to emerge or even possibly the old one being kept alive.”

Can you elaborate on why you think it’s best, and the disadvantages of the other options for Maker, and Ethereum?

“When using blockchains its always the best to go with the consensus, so it’s an easy choice. The biggest question is whether the community will see diverging advantages in the “code is law” governance approach.”

What about long term consequences for the Ethereum ecosystem, and concerns that the soft fork could be easily abused by miners?

“It turns out the people concerned were right on this one.”

Many are blaming Solidity for the issue as much as The DAO’s code, scale of deployment and handling of the attack, and claiming is as much to blame if not moreso. What are your thoughts on this?

“It’s misleading to claim it is Solidity’s fault. However, there are various things with solidity, the EVM, and the entire tech stack basically, that could and are still being improved. Overall I think Ethereum’s technology is in extremely great shape and lightyears ahead of everything else.”

Current DAO Hard Fork Voting Status

How much responsibility does the Ethereum community have to those staked in the DAO?

“Absolutely Zero.”

What is Maker Doing that ensures that it will not become another TheDAO?

Same as we have always been doing, obsessing about security at every step of the design and implementation process. We knew very early that security was going to be the most important factor and have been building our entire stack around that maxim from the start.

Early Voting from ethereum mining pools has shown strong support of a hard fork. What is your recommendation to those that have yet to vote on the matter?

Vote with the majority.

MakerDAO has suffered from security issues similar to the DAO’s over the last few months, the prime difference being their decisive action in fixing them, preventing any theft of their collateral or stablecoin. The DAO has been a massive, market altering failure, but Rune, along with many others believe that the underlying technology is not to blame. What we see in terms of utility from complex Ethereum-based smart contracts will be interesting to see following the hard fork.

Thoughts on the coming hard fork and the future of other Ethereum DAOs? Leave them in the comments!


Images Courtesy CarbonVote.com, MakerDAO, Pando

The post MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview appeared first on Bitcoinist.net.

MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

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