Čvc 21

Coinbase Bins Bundle Product as Altcoins Get REKT

After 8 months on the market, Coinbase binned its crypto-diversified Bundle product. Does this mean that the altseason is never coming back?


Coinbase Bins the Bundle

Altseason is over and nobody is quite sure when it’s coming back. Coinbase appears to have received the message, to the extent that the exchange binned its diversified crypto-bundle product. A quick view at the exchange’s updated FAQ reads: 

Coinbase Bundle purchases have been deprecated, as such all assets purchased in the Conibase Bundle have been redistributed to their respective individual asset wallets.

Coinbase Bundles were meant to provide crypto investors with a diversified digital asset portfolio that could be dollar-cost averaged following the same tactic investors use in traditional asset classes. Initially, investors could throw down $25 to purchase a bundle of five cryptocurrencies which were balanced in proportion to their market cap. 

Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin comprised each bundle. In combination with Coinbase Learn and Asset Pages, the bundles were meant to appeal to crypto newbies looking to dollar cost average into long positions without having to conduct an immense amount of technical analysis and research. 

When introduced in September 2018, Coinbase said: 

The vision of an open financial system depends on people’s ability to understand, explore, and choose cryptocurrencies. We expect that millions of people will make their first cryptocurrency purchase in the coming years. But all too often, getting started can be overwhelming for people learning about crypto for the first time.

It’s not Time for Crypto Diversification

While the product cancellation is bound to draw some criticism and possibly even pleasure from those who despise Coinbase, its is probably a wise move to bin the product as altcoins have been pummeled as Bitcoin rallied and corrected.

The crypto-sector is akin to a baby learning how to walk and each company will trial various products and adjust as necessary. The cancellation of Coinbase Bundle also adds credibility to the argument that diversification does not work for crypto yet as the sector remains too volatile at the moment. 

Do you think digital asset diversification is a successful investing strategy? Share your thoughts in the comments below! 


Images via Shutterstock

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Čvc 09

Bitcoin Price Rallies Towards $13,000 In Sudden 11% Surge

Just yesterday the Bitcoin price sentiment was starting to turn bearish as markets began to cool off. Many of the top analysts on crypto twitter had hinted at further losses as BTC posted lower highs. Today it has surged back in an epic 11% pump back towards $13,000.


Bitcoin Price Bears Bashed Again

BTC had been consolidating around $11,500 since recovering from its dip into four figures early last week. That range bound action finally broke during early Asian trading this morning when Bitcoin price broke through resistance and traded north of $12,000.

The king of crypto did not stay there and made a big push up to a new 13 day high of $12,880 according to Tradingview. It is the highest price Bitcoin has attained since June 27 when it slid down from that peak just $900 higher.

bitcoin

BTC price 1 hour chart – Tradingview.com

A new 2019 high could be imminent if Bitcoin price can close above the previous two daily candles at $12,950. Trader and analyst Josh Rager, who said yesterday’s weekly close was bearish, has changed his tune today as BTC continues to defy the markets.

“With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week”

“Fool me once, shame on you… Fool me twice, shame on me. No way was I shorting Bitcoin after a close under the resistance again. Not much stopping this train, just minor daily & weekly resistance left until new yearly highs.”

Altcoin Annihilation

Rager continued to comment on Bitcoin dominance which was approaching 67% at the time of writing.

“Bitcoin Dominance on its way above 66%. This is why you always keep a healthy percentage of your portfolio in Bitcoin especially in a bull market.”

It is the highest market share Bitcoin has had since December 2017 and those predominantly holding altcoins will be in a world of pain at the moment. Of the $26 billion that has entered the crypto markets over the past 24 hours, BTC is responsible for almost 85% of it.

The top three crypto assets after Bitcoin have not even gained 3 percent each. Even Litecoin, which is halving in just 27 days, has only managed a blip to get above $123. There are a number in the red at the moment including BNB, TRX, ADA, XMR, LEO, LINK and ATOM.

Many of those interviewed at the Taipei Blockchain event (link to Taipei article) were confident that altcoins would rally again soon but at the moment they are getting buried by their big brother. A new 2019 high could be imminent for BTC this week and after today’s move, all eyes are on $14,000.

Will Bitcoin price break resistance to hit a new yearly high? Add your thoughts below.

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Čvc 08

Bearish Weekly Close Could Create More ‘Buy Bitcoin’ Opportunities

Bitcoin and crypto markets have been mostly sideways over the weekend. There has been little movement in either direction for BTC and most of the high cap altcoins and all eyes have been on the close of the weekly candle.


Bitcoin Price Closes Below Resistance

The four hour chart has been showing lower highs for the past week or so however the range is tightening up which could lead to a possible breakout. With an intraday high of $11,700 and a low of $11,000 BTC remains range bound for now trading at 00.

bitcoin

BTC price 1 hour chart. Tradingview.com

Trader and analyst Josh Rager has been eyeing the charts for the next move and is leaning towards a bearish one following the close of the weekly candle.

“Bitcoin closed below the resistance while at the same time tapped the tippy top of the support near $9,614. With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week. But you know that you’d love to buy more BTC and crypto under $10k”

On the upside, any move below five figures may well trigger another ‘buy Bitcoin’ frenzy as we witnessed last week when BTC fell to $9,600 briefly.

Full-time trader and self-styled financial revolution prepper ‘Financial Survivalism’ has also hinted at a move to the downside and expects Bitcoin price to drop back into four figures this week.

“I’m expecting $BTC to return to 4 figures within the next 48 hours. Main reason is the high volume shooting star from last week.
Confirmation comes from the charts below:
1st weekly Stoch sell signal since Dec 17
Overbought W ADX
Bearish TK Cross on D cloud
4h Bear channel”

The sentiment appears to be spreading across CT this Monday morning as others echo the possible end of the rally.

“In the near term, I think upside on $BTC is limited. Likely the top is in for the next 3-4 months. Better to build some support first before the 6 fig moon mission.”

Altcoins In The Green

Not all is bearish during Asian trading this morning. A number of the altcoins are actually posting pretty good gains over the past 24 hours. Ethereum has made almost 6% taking it back over $300 again, and Tron is on a flyer surging 9% to retake a top ten place.

Monero is up a similar amount as XMR reaches $105 and Crypto.com Chain is in double digits this morning with an 11% pump. Total market capitalization has added $8 billion so maybe the altcoins could be starting to finally decouple from their commander at the top.

Will Bitcoin price drop back to four figures this week? Will there be favorable situations to buy more Bitcoin?Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: Josh Rager @Josh_Rager, Financial Survivalism@Sawcruhteez

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Čvc 05

Bitcoin Market Grew ‘Independently’ in Q2 2019: Binance Report

Correlation between the Bitcoin market and the altcoin market dipped in the second quarter of 2019, claims Binance.


The Malta-based cryptocurrency exchange pitted Bitcoin against thirty alternative cryptocurrencies to determine whether or not it moved in lockstep with them. The exchange noted that all the known altcoins were tailing the Bitcoin price trend positively in Q2/2019. Nevertheless, the speed at which they followed the leading cryptocurrency experienced a drop, implying that the altcoin market, as a whole, failed to run along with a supercharged Bitcoin price rally.

“Bitcoin (BTC) became less correlated with other crypto assets in Q2 2019 relative to the first three months of 2019,” read Binance. “Correlations declined between Bitcoin and altcoins, with a decrease in the average correlation of -0.11.”

In retrospective, a perfect positive correlation between two assets reflects their 100% probability of moving in the same direction. Conversely, a negative one means that the two would always run in the opposite direction. Assets with a correlation score above 0.5 show positive correlations between the two, while a score below -0.5 exhibits negative associations.

bitcoin, bitcoin price

Bitcoin Dips against Altcoins in Terms of Correlation | Image Credits: Binance Research

Binance noted that Ethereum came closest to Bitcoin with a 0.81 positive correlation in Q2/2019, down from 0.889 of the previous quarter. Similarly, the XRP-to-Bitcoin correlation dropped from 0.875 in Q2/2019 to 0.69 in Q1/2019. The statistics appeared the same across the rest of the cryptocurrencies, including Litecoin, MIOTA, EOS, Bitcoin Cash, Bitcoin SV, and others.

Flight to Quality

The said dip appeared in line with the Bitcoin’s growing dominance in the cryptocurrency market. The leading cryptocurrency mousetrapped more than 63 percent of the total market valuation, leaving other digital assets with a fractional influence. Binance called it a “flight-to-quality behavior,” a term which indicates investors’ partiality towards what they believe is the most bullish asset. Excerpts from the report:

“The overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by “just” 71 percent over the same period. This can likely be attributed to a “flight-to-quality” behavior by crypto investors in an early bull-market state.”

The statistics closely followed the findings of Gabor Gurbacs of VanEck. The digital asset director noted that Bitcoin had left all the blue chips (a basket of top ten cryptocurrencies) and smaller cap coins (another pool of top 100 cryptocurrencies) behind in the previous 12 months in terms of returns, as shown in his tweet below:

Although the Blue Chips (Ticker: MVDA10) recorded a lesser loss compared to the Small Caps (Ticker: MVDASC), a closer look reveals that Bitcoin had more than 33 percent dominance in the former.

Bitcoin Remains the King Cryptocurrency

The Binance report reflected a shift in crypto investors’ mindset. They considered Bitcoin safer than most of the alternatives available inside — and also outside — the cryptocurrency industry.

“The report could help in assessing whether today’s crypto-market environment behaves similarly to historical early stages of bullish environments in traditional financial markets,” Binance concluded.

What do you think about Bitcoin’s YTD performance? Let us know in the comments below.


Images via Shutterstock, Binance Research, Gabor Gurbacs

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Čvc 05

Bitcoin Price Begins Consolidation; Markets Cooling Down

As the parties wind down in the US and the impending hangovers begin to fester, Bitcoin is taking a breather. In what appears to be the beginning of a consolidation phase, BTC has dropped around 8% on the day.


Bitcoin Price Falls Back To $11000

The epic 25% bounce back from the depths of $9,600 took Bitcoin price to $12000 briefly yesterday. For the duration of the fourth, it managed to consolidate around $11,800 but has fallen sharply a few hours ago. The latest dip has returned BTC back to $11k, and it is currently holding just above there at 00.

bitcoin

BTC price 1-hour chart – Tradingview.com

Daily volume has retreated back to $25 billion and BTC market capitalization has just dipped below $200 billion again. As Bitcoinist reported earlier this week, BTC may have found a new floor at around $10,000 but a drop below this could signal a deeper dip than the previous one, possibly somewhere back in the $8k region.

The CT traders seem to have taken the day off for the US holiday and things are pretty quiet in crypto land at the moment. Looking at next levels of support, the 50-day moving average is currently at $9,200 so this may serve as the next lower low if BTC heads south again.

On the four-hour chart, Bitcoin price has already dropped below the 50 MA and could head towards the 200 which is currently at $9,600. As in previous cycles, there was a lot of buying pressure at four figures but this may not be of the same magnitude if BTC drops below $10k again.

CNBC, which often serves as a counter trade signal, seems to be bullish on Bitcoin however with this rather festive tweet posted a few hours ago.

Altcoins Getting Battered Again

Total crypto market capitalization has dumped over $15 billion on the day but Bitcoin dominance remains over 65% according to Tradingview.com. Yet again the altcoins, which are already in bad shape, are getting battered.

Ethereum has dumped 5% to return to $285 and XRP has shed a similar amount falling back to $0.387. Litecoin is holding $120 at the moment but Bitcoin Cash and EOS are both down 4%. There is a lot of red on the altcoin markets during Asian trading this morning and only a handful of the very low cap ones are making any progress.

The weekend may see more consolidation from Bitcoin which appears to result in a dump in the altcoins. It might be time for the daddy of crypto to take a breather for a bit.

Will Bitcoin price make another lower low or remain here for a while? Add your thoughts below.


Images courtesy of Shutterstock, , Tradingview

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Čvn 25

Bitcoin Price Surge Dampens Altcoin Rally Hopes

There has been no Monday correction for Bitcoin this week as the top cryptocurrency has held on to its weekend gains. With market dominance, a touch under 60% many traders and crypto aficionados are beginning to wonder if the altcoins will ever recover.


Bitcoin Price Holding Steady Above $11000

Bitcoin is back at its 2019 high of just over $11,200 at the moment. It has spent most of the past day consolidating around $10,800 but started heading north again during the morning’s Asian trading session. Since the same time, last week BTC has made a solid 20% and has shown no signs of slowing down.

crypto

Bitcoin price 1 hour candles – Tradingview.com

There is a lot of resistance in the $11,700 region but that has not thwarted Bitcoin previously. A correction right now would be healthy though as parabolic charts are not. That thirty percent plus chart move that many have speculated about would drop BTC from its current high back to around $7,800. At this level or lower, there is likely to be a lot more accumulation before the next leg up.

Remember 2017? When Altseason?

Many traders on Crypto Twitter are starting to express concern about the performance, or lack of, for most of the altcoins. While some such as Litecoin have done extremely well the majority still appear to be frozen over from crypto winter. An earlier tweet by blockchain entrepreneur ‘The Crypto King’ served as a reminder from 2017.

“All the focus is on BTC… did everyone forget 2017?
BTC pumps. BTC Stagnates.
Alts go absolutely bananas.
Altseason 2.0 Tik Tok.”

This sentiment has been echoed by crypto trader ‘Moon Overlord’ who has also looked back at patterns in late 2017 when altseason took off.

“The altcoin sentiment feels eerily similar to mid to late 2017. Bitcoin just went up and up and $ALTS got smoked. Then all of the sudden WHAM, a few alts lead the way and they started going 50, 100X out of nowhere. I suspect this time will be no different, you won’t get a warning,”

It is true that many of the top performing altcoins from 2017 have done very little in 2019. Big pump coins such as Cardano and Stellar have now been dumped out of the top ten and are still down from ATH by 91% and 85% respectively. Other previously high performing altcoins such as IOTA, NEO, OmiseGO, ICON, Qtum, Lisk, VeChain and 0x are still battered and bruised showing very little sign of recovery.

Many have speculated that a lot of 2017’s tokens will fade away and be usurped by new offerings this year but at the moment Bitcoin is still dominating markets and an altcoin season has yet to begin.

Will Bitcoin give altcoins a chance to move higher? Let us know what you think in the comments below. 


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Čvn 14

Visa, Paypal Say They’ll Pay $10 Million to Run ‘Facebook Coin’ – Report

Big companies like Visa and PayPal are reportedly willing to pay millions for the privilege of running a node on the Facebook cryptocurrency network.


Facebook’s foray into crypto has been met with mixed reaction. Some are hailing it as the next step in a global financial revolution, while others have expressed concerns over the company’s shady past record when it comes to security, privacy and data abuses.

Nevertheless, U.S. tech and finance giants clearly want a slice of the Facebook crypto pie. According to the Wall Street Journal, a number of financial and e-commerce companies, venture capitalists and telecommunications corporations have already pledged to back the new project.

Big Names Want In On ‘GlobalCoin’

The report added that over a dozen firms, which include Mastercard Inc, Visa Inc, PayPal Holdings Inc, Stripe Inc, Booking.com, and Uber Technologies Inc, have formed a consortium and agreed to pledge $10 million each to secure governance over the new crypto coin.

It was reported last month that the social media giant was recruiting backers and aimed to raise $1 billion for the crypto project.

Fearing Bitcoin, VISA and Mastercard Reclassify Crypto Purchases as 'Cash Advances'

The currency dubbed ‘Libra’ or ‘Global Coin’ is expected to be officially announced next week. The stablecoin will be pegged to a basket of government-issued currencies — similar to the IMF’s SDR (special drawing rights) basket of fiat currencies — to avoid the volatility of cryptocurrencies.

The report was not very complimentary of bitcoin stating,

It has been a decade since bitcoin was born, yet consumers hardly use it—or the hundreds of other cryptocurrencies—to pay for things. Facebook is betting it can change that with a crypto-based payments system built around its giant social network and its billions of users.

The usual regulatory concerns have been raised as governments get anxious about the potential for money laundering. According to the WSJ, Facebook won’t exactly control the new coin, neither will the individual members of the consortium, which is known as the Libra Association.

Citing people familiar with the situation, it added that some could serve as nodes for blockchain transaction validation.

Facebook is still the direct developer of the greatly guarded technology so its influence over the coin is likely to be as strong as it has over the data on the social media platform. Just like Google, Facebook has a highly secretive algorithm that determines what users can and cannot see in its news feed.

‘Facebook Coin’ Will Boost Bitcoin

Co-founder and partner at Morgan Creek Digital Anthony ‘Pomp’ Pompliano said that the move was especially bullish for Bitcoin adoption considering two of the backers are Visa and Mastercard.

Participating in the Libra project allows companies like PayPal, Visa, and Mastercard to exert some level of control over the new ‘cryptocurrency’ and its centralized governance. This makes the new coin unlike Bitcoin that’s an open-access cryptocurrency allowing anyone to download the software and run a node.

Therefore, ‘Facebook Coin’ is unlike to pose any real threat to the future of decentralized peer-to-peer finance. Instead, it already looks to be more like a competitor to banks or even Starbucks Rewards than P2P ‘digital gold.’

Will Facebook crypto be a threat to bitcoin? Add your thoughts below.


Images via Shutterstock

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Čvn 08

Top 3 Cryptos, Not Named Bitcoin, Making Waves in June

As bitcoin price continues to hover around $8,000, some cryptocurrencies, namely Litecoin, LEO, and Binance Coin, have somewhat managed to steal the spotlight in recent days and are probably worth keeping an eye on in the short to medium term. 


Top 3 Cryptocurrencies: Litecoin (LTC)

Litecoin 00 managed to outperform all top 10 cryptocurrencies by means of market capitalization in the past 24 hours. Its price touched $120 which was an increase of around 12 percent.

However, Litecoin has since re-traced and is trading at around $115 at the time of this writing. Still, that’s about 5 percent increase on the day.

Litecoin’s performance throughout 2019 has been nothing but impressive so far. Since January 1st, LTC has gained around 300 percent.

More interestingly, the recent surge comes about 58 days prior to Litecoin’s halving event. It will cut the block reward from 25 to 12.5 coins per block, which could, in theory, catalyze a further increase in the cryptocurrency’s price.

LEO

LEO is relatively new on the market. It was issued through a private sale conducted by one of the popular cryptocurrency exchanges, Bitfinex. The event sold a total of $1 billion worth of LEO at the price of 1 USDT each.

At the time of this writing, LEO is trading at around $1.70, which is an increase of about 70 percent since its private sale. The cryptocurrency currently sits at a market cap of around $1.7 billion.

On the daily chart, LEO marks an increase of around 3 percent. According to LEO’s White Paper, iFinex will be doing regular repurchases and burns of the token on a monthly basis.

The company and its affiliates will buy back LEO tokens from the market equal to at least 27 percent of its gross revenues. The reducing supply, given the demand for the cryptocurrency remains the same, could also, in theory, keep its price moving higher.

Binance Coin (BNB)

This probably doesn’t come much as a surprise, but Binance Coin 00 continues to be on the watchlist of best-performing altcoins over the past year.

BNB has marked a slight increase of around 3 percent on the day. However, looking at the bigger picture, the cryptocurrency has surged more than 400 percent year-to-date.

Don’t be surprised if its increasing utility, particularly in Initial Exchange Offerings (IEOs), as well as the regular coin burns that reduce supply on the market, push its price to new all-time highs by the end of this year.

What do you think of these three altcoins and their performance so far? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, TradingView

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Čvn 07

Diamond-Backed StableCoin CEO Talks Blockchain For Storing Value

Bitcoinist spoke with Jeremy Dahan, founder and CEO of diamDexx, a diamond-backed stablecoin that promises to make cryptocurrencies more practical for everyday use.


In the decade since the 2008 financial crisis, the monetary system has changed tremendously. Once unshakable pillars of the industry no longer exist, and new financial instruments, like digital currencies, have become more accessible.

At its peak, Bitcoin and hundreds of other digital currencies achieved a market cap of nearly $800 billion. But despite a well-publicized price drop, these tokens continue to be popular investment vehicles in the digital age.

Of course, that doesn’t mean that they are fulfilling their purpose. Bitcoin was initially intended to serve as a borderless, decentralized currency that could facilitate commerce in the digital age. However, it’s erratic valuations, and broad speculative interest has made it more akin to digital gold than to usable currency.

Consequently, a cadre of asset-backed stablecoins have emerged that combine the functionality of digitization with the reliability of fiat.

While stablecoins can address many of the shortcomings in today’s cryptocurrency ecosystem, they have had their own share of problems. This is something that diamDEXX is striving to solve by backing their token with diamond assets and offering convertibility with real diamonds.

Jeremy Dahan

Jeremy Dahan is the CEO of diamDEXX, and we had an opportunity to chat with him about the role of blockchain in the future of finance and how asset-backed tokens could make crypto more practical for everyday use.

There is significant debate right now about the role of digital currencies in the economy. To what extent has volatility stifled crypto adoption or made it less likely to be used at checkout? 

Volatility has played an essential role in the usability of crypto. It’s basically the start of a vicious cycle that impacts cryptocurrency on all fronts – from regulations to the ways users interact with it. Companies, on their side, also don’t want to use and transact in unregulated assets that are also terribly volatile and can quickly put them in the red. It’s just not a wise way to do business.

But volatility is actually what’s attracting new users. It’s arguably the biggest use-case at the moment with many transactions being to/from exchanges. Why would investors be interested in a ‘stable’ diamond-backed digital token?

Speculation, as you say, has so far been the main driver of the crypto industry and, just as in today’s financial markets, will always exist. However, if we want to achieve crypto adoption and disrupt the current financial systems, we need to establish cryptocurencies as an everyday solution. For that, we need stability. Investors, can use this kind of currencies to both safeguard their profits and pay for products and services.

The blockchain is quickly catching on as the go-to technology for tracking and conveying financial assets. What makes this technology so beneficial in this regard?

People have always tried to create trusted institutions and to appoint figures of authority to verify that everyone follows the rules of the ‘games’ we play, whether that’s in finance, law, or even actual games.

This has been true digitally as well. With the internet and now the blockchain we’ve managed to create decentralized, incorruptible ledgers that codify and embed our rules into a trustless system, and I think that’s extremely valuable.

At the end of the day, code can’t be bribed and doesn’t make emotional decisions. It just does what it’s supposed to do, and anyone with the necessary knowledge can verify its integrity or point out flaws on it.

For those just becoming familiar with the idea of using digital tokens to store physical value, what’s the most significant benefit of tokenization?

Tokenization is not a new concept. Public companies have been doing it for ages in the form of shares and stocks. However, the blockchain has drastically changed the game by giving everyone the power to access these financial tools without having to go through the hoops imposed by traditional financial institutions.

In many ways, you’re now able to act and profit like a Fortune 500 company from your living room if you have something of value to offer to the world.

There are many so-called stablecoins coming to market that offer similar solutions to crypto’s well-documented volatility. What makes diamDEXX’s diamond-backed solution superior to the efforts of these other platforms?

The very first thing that sets the DIAM ‘Coinsistent’ apart from its competitors is token-to-stone redeemability. Thanks to this feature, DIAM users can obtain physical diamonds from their tokens’ worth of cryptocurrency. They can either receive a shipment or delegate these diamonds’ custody.

Thanks to this, we’re digitalizing, liquidizing, and ultimately creating the ultimate store of value. It’s also important that users take a look at diamonds as asset classes and realize their true value. Basically, we’re talking about the most crisis-resistant, best-performing asset of the last decades.

Saying something is ‘backed’ by an asset is a bit inaccurate. One must trust a third-party to actually deliver the asset if the user wants to claim it just like it used to be with gold-backed paper money.

Since our coin will also be listed on exchanges, it is on our best interest to create as many incentives as possible for people to hold and redeem DIAM. Our partnership with IDEX, a world leader in online diamond trading, has allowed us to create a platform where users can obtain diamonds directly from 8,000 manufacturers, saving them money by avoiding intermediaries’ commissions and cuts. IDEX is also our monthly auditor, which means we have yet another incentive to honor our commitment to transparency.

How can asset-backed tokens overcome the transparency problem that has plagued so many other platforms?

Precisely by providing transparency. Users should be very wary of anyone not wanting to comply with audits, documents, and proof of funds. The Internet, scanners, the blockchain, the cloud, and many more tools are there to make this easier than ever. Those who won’t comply with minimum requirements, I’m afraid, have something to hide. 

IDEX is a fully regulated and reputable company, and it oversees the auditing of our diamond vaults. Every month, our stock reserves’ value is being audited, with reports publicly available on our website.

What implications might that have for the broad crypto ecosystem? And to the economy itself?

The right asset-backed token might be a groundbreaker for the overall economy and for crypto. For the first time, we would be facing something that’s more valuable than fiat currency, both in the fundamental, ideological, and financial way.

What happens if such an asset is created? Only time would tell, but in my mind that can only mean that our competitors (even if those are government themselves) either try to shut us down or try to catch up to the trend. Eventually, great technology always wins.

What’s the point of using a blockchain (if it doesn’t remove trust) when one can simply ‘tokenize’ an asset using a centralized database?

A blockchain, of course, keeps a public track of every transaction, making the issuing, handling and burning of tokens transparent. It’s also reliant on Ethereum, a platform which users trust and know. On a centralized database, this level of transparency can’t exist.

Why is a native token needed? A sidechain like Liquid, for example, can harness the immutability and decentralization of Bitcoin. Why use less secure blockchains that are prone to 51% attacks and other vulnerabilities.

Our project relies on the fact that the dollar value of the diamonds in our vaults perfectly matches the amount of tokens to issue. Without a native token, the smart contract that regulates both the vaults and the amount of tokens cannot perform it’s functions, and we can’t ensure the consistency of our currency.

Having an ERC-20 token, on another hand, protects us from 51% attacks, since the Ethereum blockchain is strong enough to prevent these attacks.

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Čvn 01

This IEO Crypto Token is Up 800% After Binance DEX Launch

Crypto figures were urging caution June 1 after the first token to trade on both Binance and Binance DEX saw suspiciously high trade volume.


Harmony Outperforms BNB Crypto Token

Harmony (ONE), which constitutes Binance’s latest initial exchange offering (IEO), saw over $600 million in volume in the 24 hours to press time, according to data from CoinMarketCap.

The token is the first to debut on both Binance’s regular platform and its newly-launched decentralized exchange, Binance DEX.

Executives had generated considerable buzz around the move through a concerted publicity campaign prior to the launch, which included a giveaway to promote ONE among prospective investors.

Analyzing the trade figures, however, veteran crypto social media voices appeared less than impressed.

“It’s up by 800%+ from (the) IEO. Wouldn’t recommend chasing this,” the Twitter account known as Squeeze summarized, noting ONE/USD trading at $0.025.

“I’ve been eyeing this for a while. This has very huge hype. But not gonna buy at this price. Will wait for dips in the coming weeks. If it moons hard, I don’t mind missing this. Plenty of other choices.”

Binance DEX Whirlwind

Harmony was little known before its Binance hook-up, with the launch of the DEX having already sparked major excitement among traders.

As CoinMarketCap confirms, Binance’s decentralized platform saw larger volumes in five hours than its biggest competitor, IDEX, achieved in 24.

“By tomorrow it will have done more volume than all DEX’s combined,” trader and journalist Dan Clarke forecast Saturday.

As Bitcoinist reported, Binance itself has seen a broad turnaround in its recent fortunes since recovering from a $41 million hack at the start of May.

Following a week of downtime, full functionality resumed May 15, with the platform’s in-house token, Binance Coin 00, forming the basis of a separate giveaway to reward users who stayed loyal during the platform’s difficulties.

BNB subsequently outperformed, reaching new all-time highs against the US dollar this week as it passed $35 for the first time.

The token, which can also be used against discounted trading fees on Binance, is now the seventh-largest cryptocurrency by market cap. 24-hour volume at press time was $560 million – still just short of ONE.

Separately, the exchange’s own research this week announced a changing trend in the crypto industry more broadly. After over a year of low appeal, non-crypto lay consumers were finally beginning to pay attention to Bitcoin 00 and altcoins again.

In addition, institutional investor interest was developing much more quickly, analysts said, a phenomenon which itself was contributing to the base of new Binance traders.

What do you think about Binance DEX and Harmony? Let us know in the comments below!


Images via Shutterstock, Tradingview.com

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