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Binance Bans Deposits in Nigeria After CBN Directive

By
Adam Barry
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0

Binance suspended deposits from Nigeria following a directive by the country’s Central Bank to close all crypto-related accounts. The Central Bank of Nigeria sent a letter to all banking institutions to identify and permanently close all accounts transacting in digital currencies. Owing to the directive, Binance released a statement noting it had suspended any further transactions made in Nigerian Naira on its platform.

The exchange stated it would be monitoring the regulatory situation in Nigeria and providing further updates. In the statement, Binance said it was closely working with relevant stakeholders to ensure the blockchain’s growth in Africa.

CBN issued the directive on Friday and dubbed the trading of bitcoins as illegal. The financial authority demanded all crypto-related accounts closed and for financial institutions to remain clean from cryptocurrency dealings. In its circular, the bank noted all institutions that were not going to comply would face severe compliance sanctions.

Nigeria was 2nd Largest Cryptocurrency Marketplace

Cryptocurrency pundits remain afraid Nigeria is going to lose its position as the second-largest crypto trading marketplace in the world. While the country is only the latest of governments to institute a cryptocurrency ban, blockchain innovation and growth remain under great risk.

According to findings by Paxful exchange, Africa is in good standing as a promising cryptocurrency hub. However, experts note growing regulatory scrutiny is going to harm innovation in the sector. This is besides regulation being a good tool for investors and institutions upholding support for crypto.

The CBN directive has caused increased panic in Nigeria, but pundits believe the strict law isn’t going to last long. The Binance suspension is only temporary, but it might be as long as Nigeria’s central bank lifts the ban.

Most Nigerians believe the Central Bank’s directive is a result of the government’s growing apprehension following the #EndSARS campaign. The campaign organizers began using cryptocurrencies to collect donations after the government imposed financial sanctions on their accounts. However, Blockchain experts such as Tosin Olugbenga believe the prevailing bitcoin bull run has its hand on the situation.

Olugbenga says most Nigerians are converting their money to Cryptocurrencies to make interests. As a result, the Central Bank sees this as a threat and therefore decided to ban cryptocurrencies.

Hedge Fund Of Bill Miller Will Invest In GBTC To Get Exposure To Bitcoin (BTC)

By
Adam Barry
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0

Hedge fund owned by Bill Miller intends to gain exposure to Bitcoin (BTC) through investing in GBTC (Grayscale’s Bitcoin Trust). It holds current assets worth $2.25 billion.

Files an amendment with the US SEC

The hedge fund of the MVF (Miller Value Funds) family – The Miller Opportunity Trust filed an amendment with the US SEC for its registration statement to get exposure to Bitcoin.

Miller Value Partners LLC is established by Bill Miller, a billionaire investor, in the year 1999. The MVF family uses it as an investment manager. The Miller Opportunity Trust is managed by Samantha McLemore and Miller.

Tesla Inc (NASDAQ:TSLA) invests $1.5 billion in Bitcoin

The leading electric car manufacturer – Tesla Inc (NASDAQ:TSLA) invested $1.5 billion in BTC. As a result, the prices of Bitcoin surged higher and signaled the acceptance of cryptocurrency for payments. Tesla made changes to its investment policy in January 2021, to purchase digital assets. 

According to a securities filing, Tesla expects to accept Bitcoin as a payment for its products in the future. The embracement of Bitcoin by Tesla enhances the confidence in electronic currencies despite skepticism in recent years.

Shows interest in Bitcoin in 2020

Tesla showed interest in the digital currency after its value tripled last year. Bitcoin reached a high of $44,795 (up 16%) as of February 8, 2021.

In an interview, Elon Musk, CEO of Tesla, who often tweets about topics related to cryptocurrency, called the digital currency – Bitcoin as a good thing earlier this month. For several years, Musk has been flirting with Bitcoin. He posted a suggestive image on Twitter in December 2020 showing he is tempted by Bitcoin.

Musk also discussed with MicroStrategy Inc’s CEO, Michael Saylor about possible ways to convert the large transactions of Tesla’s balance sheet into prominent digital currency. It acted as a driving factor for digital currency.

After the discussion, Michael started encouraging Musk to convert the dollars of the EV Company into Bitcoin. As a result, Tesla is just behind the MicroStrategy in holding the Bitcoin. The revised policies of Tesla also allow it to invest in gold exchange-traded funds and gold bullion.

Miami Mayor Wants To transform the City Into A Blockchain Tech Hub

By
Adam Barry
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0

Miami Mayor Francis Suarez wants to make the city an attractive destination for crypto investments as lawmakers consider creating regulations supporting the blockchain and cryptocurrency industry in Florida.

Suarez wants to turn into a blockchain and crypto hub

Suarez wants to convert Miami into an innovation hub with the number of venture capitalists, founders, and major companies moving into the city growing. He indicated that recently they announced a $100 million VC fund with Softbank to award companies and firms moving to the city. Further, he explained that they are working on different things to ensure incentives are in place and there is legislation promoting cryptocurrencies and the blockchain industry. The focus is to make it comprehensive and a holistic endeavor for Miami citizens to thrive.

Regarding the $100 million from SoftBank to startups said that the CEO of the bank saw what he was doing and chose to be part poof it. Suarez said that for any ecosystem to grow it needs talent which is available and has been exporting for decades, but there is a need for capital also. This will be the first kind of investment aimed at accelerating and scaling up of companies in the city.

Miami wants to include BTC in the payment of its workers

The mayor has been vocal about cryptocurrency and blockchain in recent weeks and he expects the industry to continue growing in the City. He adds at all cities in the US and across the world should try to grow the blockchain and crypto ecosystem. At the beginning of the month, Suarez indicated that Miami city employees have a right to take their pay in BTC if they choose and further suggested that residents should be allowed to pay taxes and municipal fees through BTC and other cryptos. He also proposed investing part of the city’s treasury into BTC although this could be tricky considering there are rules that should be followed in terms of investment threshold.

He said recently they posted a Satoshi white paper on the municipal’s website which went viral with the paper getting 2.3 million impressions.

Russia Introduces Regulatory Sandbox To Enhance Testing Of Blockchain Innovations

By
Adam Barry
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0

Russia’s regulatory sandbox came into effect last month to boost the implementation of innovative blockchain tech. Usually, companies face challenges when implementing and testing innovative tech because they require the amendment of existing legislation. Most importantly, creating and testing new blockchain tech-based products needs special requirements that are mostly inconsistent with currently available regulations.

Russia introduces regulatory sandbox to allow testing of new blockchain innovations

However, this is a challenge to address by introducing a special “regulatory sandbox” regime. Notably, this implies a need to create an ecosystem within which state-owned enterprises and companies can test innovative developments without any huddles.

On January 28, federal law No. 258, “On Experimental Legal Regimes in the Field of Digital Innovation in the Russian Federation” started working. The sandbox allows testing of new software to ensure it is useful and effective before deciding if legislation needs a change to accommodate the innovation based on test results. Therefore, having a “sandbox” in a [particular limited area such as within one city can allow several companies to test their innovative products.

Besides distributed ledger technology, the list also includes big data, artificial intelligence, quantum technologies, robotics as well as other technologies. Companies will comply easily with current regulations with some exemptions necessary for testing if new technologies. Generally, sandboxes will be an impetus for new job creations, the emergence of new organizations, and the enhanced competitiveness of Russian firms globally.

Sandbox regime has a 3-year term with possible extension

Most importantly, the experimental legal regime introduction will be possible in financial activity, construction, trade, medicine, industry, agriculture, municipal and state services provision, control, and implementation. The Russian sandbox term is limited to three years, with the option of an extension for another year. Equally, it allows applications from organizations that propose a special legal regime introduction.

Among the areas where sandbox testing could deliver significant change is in the utilities and housing sectors. The DLT will simplify payment procedures, reduce paperwork and make billion transparent.

High Ethereum Gas Fees Side-lining Small Wallet Holders As Whales Reap

By
Adam Barry
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0

Although high gas fees on the Ethereum network are making it challenging for retail investors to interact with DeFi protocols that is not the case with Whales. Since the beginning of last year, the DeFi sector has seen a lot of attention because of its latest innovation as well as profitable opportunities provided to crypto holders.

DeFi sector experiencing growth pains

The sector is has been witnessing growth pains and the high gas fees exacerbated this last week. Interestingly, the absence of an ideal layer 2 solutions could be pushing retail investors away from decentralized finance. For instance, retail investors trying to trade on Uniswap or approve a new token on their most preferred platform will have noticed the impact these actions could have had on their Ethereum Wallets.

Etherscan data shows that although the gas prices are soaring they are yet to reach the highs reported in December 2020. Most importantly, the surge in gas fees coincides with the soaring Ether price. Interestingly, an analysis of different time zones indicates that transaction costs occurring in the US trading session are comparable to those in the Asian trading session. The comparison is an indication that the fees are a result of network usage and underscores the significance of the 24-hour crypto market.

High gas fees making it hard for small wallet holders

Whale token holders have benefited significantly from the sudden network fees surge. When looking at wallets that had over 20 ETH in 2020, there is a higher number of ETH transactions compared to those coming from smaller ETH wallets which correlates with increases in the fees. Large wallets holders tend to engage more with protocol when there is congestion because the large wallet balance is not affected much by growing transaction costs

Basically, a $20,000 trade and a $200 trade on Uniswap cost the same at around $50 given the current conditions. This makes it less likely for smaller wallet holders to trade because the cost of the trade will be 25% of total value against 0.25%.

President Joe Biden Proposes $1.9 Trillion Relief Bill Which Could Benefit Bitcoin Price

By
Adam Barry
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0

US President Joe Biden has shot down Republican’s proposal for a $618 million COVID-19 relief bill to help struggling American businesses and households.

President Biden wants a relief bill of $1.9 trillion

Treasury Secretary Janet Yellen rejected the proposal, which is almost the size of Bitcoin’s market cap, stating that it was insufficient to stimulate the economy amid the COVID-18 pandemic. On January 2, Democrats voted to push through Biden’s relief bill, which will see the proposed sum almost tripled to around $1.9 trillion. Senate majority leader Chuck Schumer said that anything less will leave the country managing the crisis for long. While commenting on the $618 billion relief proposal, Schumer said that such a small package would leave the US stuck in the coronavirus crisis for years.

Equally, on the day the Senate voted on the bill, the House Representatives also voted along party lines on the relief bill with 216 democrats supporting renegotiation against 210 Republicans. Last year the Federal Reserve issued more money than it had ever issued in the first two centuries of its existence. Currently, US debt is almost $28 trillion leaving the country with a debt-to-GDP ratio of 130%, which is the highest by a huge margin.

Money printing benefiting BTC price

Some have predicted that the Federal Reserve’s money printing is helping Bitcoin by creating uncertainty, genuine fear, and doubt about the US dollar. Gemini crypto exchange co-founder and CEO Tyler Winklevoss has previously indicated that every time the Fed prints money it primes BTC for a bull run.

Nevertheless, the bullish run might not be bullish as it appears. Last year the number of dollars printed is almost a fifth of the dollars ever issued, and this inflation denies BTC and other cryptos buying power considering they are valued against the dollar. The Biden relief billions is a reduction from the initial proposal of $3 trillion. Most importantly, the argument of whether the relief efforts boost BTC price is something still speculative despite the price rising almost 700% since last year.

New York Judge Says Ethereum Develop Will Face Jury For Helping North Korea Evade Sanctions

By
Adam Barry
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0

Ethereum Developer Virgil Griffith must face a Jury for allegedly helping North Korea evade sanctions following his presentation at the Pyongyang cryptocurrency conference in 2019. A New York Federal court has rejected his motion to dismiss charges for helping Pyongyang evade US sanctions.

Griffith helped DPRK circumvent sanctions

According to Law360, Griffith argued that his presentation at the 2019 Pyongyang Blockchain and Cryptocurrency Conference was within the First Amendment right of free speech. He had also asked for a bill of particulars stating that he could not prepare for the hearing because the four-page charge against him w3as “short and vague” without details proving his criminal conduct. A federal judge in a New York court denied the request and ruled that Griffith had received adequate notice for the charges.

The judge quoted text messages that he sent to peers during the lead-up to the summit stating, “We’d love to make an Ethereum trio to the DPRK and set up an Ethereum node […..] It’ll help them circumvent the current sanctions on them.”  Also, another text indicated that although Griffith might have not known what the aim of Pyongyang was in crypto assets, he predicted that it was about circumventing sanctions.

Griffith arrested in 2019 for attending the DPRK summit

In 2019, the US rejected Griffith’s application to travel to North Korea for the conference but he sought approval from DPRK’s UN mission in Manhattan and received a Visa. The department of Justice arrested, Griffith on November 29, 2019, upon his return from North Korea where he attended the summit. The DOJ accused Griffith of offering technical information to DPRK, which it could use to avoid sanctions and launder money.

Early last year an indictment charged Griffith with conspiracy to breach the International Emergency Economic Powers Act by offering “services” to Pyongyang. Despite Griffith claiming that he acted within his First Amendment Act, authorities claim that his presentation could empower North Korea to circumvent sanctions. According to the Judge, Griffith didn’t receive compensation for the presentation and that may not affect the jury’s ruling.

Grayscale Planning To Foray Into DeFi Sector With Five New Crypto Trust Filings

By
Adam Barry
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0

Crypto assets management firm, Grayscale is preparing to foray into decentralized finance (DeFi) space following the filing of five new trusts in the Delaware corporate registry.

Grayscale foraying into DeFi sector

According to Delaware corporate registry records, the largest cryptocurrency fund in the globe filed for Aave (AAVE), Cosmos (ATOM), and Polkadot (DOT) on Wednesday.    AAVE is a DeFi governance protocol behind popular flash loan tools while DOT and ATOM are interoperable blockchains expected to be vital in bridging blockchains for interconnected web3. 

Equally, the firm registered trusts for Cardano (ADA) and privacy coin Monero (XMR). It seems like Grayscale is already laying the foundation for Cardano which is still under development to become a top smart contract platform with enhanced decentralization. The fund is also ready to open XMR for institutional investors despite claims by authorities regarding its use by criminals.

Grayscale indicated that the filings are not suggestive of a definitive product launch for the mentioned coins but the firm is laying the foundation for potential launches in the future. The company indicated that occasionally they make reservation filings but that doesn’t mean they will bring the product to the market.

Good performance of coins encouraged Grayscale’s decision 

It is important to note that the price performance of the mentioned coins over the past year could have encouraged the company’s decision to expand its crypto horizons.  In the final quarter of 2020, AAVE reported 483% growth to climb up to 15th in terms of market capitalization. Notably, the project was a frontrunner in 2002 in the decentralized finance space with a focus on lending, flash loans, and borrowing. 

On the other hand, Polkadot posted 537% growth between its launch to date. The project is a decentralized, multichain protocol that is interoperable, focusing on offering blockchain infrastructure to take on Ethereum. Cosmos had equally seen exceptional growth jumping 489% from $1.5 to more than $9 and currently ranks 25th in terms of market cap. Equally, Monero saw growth of 467% in 2020 while Cardano gained 187% since the launch of Shelley mainnet. 

Coinbase Considering Going Public Through Direct Listing Of Its Stock

By
Adam Barry
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0

US crypto exchange Coinbase Global has announced plans to go public later this year through a direct listing, making it’s the first cryptocurrency exchange to raise cash by tapping public markets.

Direct listing could help avoid share lockup periods and dilution

The exchange had previously filed registration documents with the US SEC but hadn’t specified that it could consider direct listing rather than the normal IPO route. In a blog post, the exchange unveiled its plans to directly list its Class A common shares according to its registration documents with the SEC. Notably, the Form S-1 registration statement will be effective after the SEC completes its review. Instead of offering new shares, the direct listing means that the exchange will sell existing shares directly to the public.

The move to sell stock directly is advantageous for those holding the company’s stock as they will be able to sell shares without lockups. This is a model that Palantir employed recently that could potentially create instant billionaires. Equally unlike the standard IPO, the direct listing doesn’t require the exchange to retain an underwriter to facilitate the offering. Besides avoiding lockup periods for the stock, the direct listing can also help in protecting against share dilution.

Coinbase valued at around $8 billion

Coinbase had raised around $537.4 million from early-stage investors. According to its last funding round in 2018, the exchange was valued at $8 billion. A statement from the company indicated that the announcement is not an offer to sell or solicitation of an offer to acquire any shares. Chinese said that the announcement is per Rule 135 of the Securities Act. The San Francisco based company declared its intent to go public on December 17 with reports claiming that it was considering working with Goldman Sachs on the public offering.

According to cryptocurrency analytics firm Messari, Coinbase could be worthy of $28 billion following the public offering. The company arrived at the valuation after analyzing Coinbase’s business segments including, custody, debit cards, and trading. Currently, the exchange boasts over 35 million users.

Reddit Blockchain Partnership Expects To Expedite Resources For Ethereum (ETH) Ecosystem

By
Adam Barry
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0

Reddit entered a blockchain partnership with Ethereum (Eth) ecosystem. It is a big win for the entire crypto community. The first-ever deal of Reddit expects to expedite resources for the ecosystem – Eth.

Commands daily users of 50 million

One of the administrators of Reddit – Jarins says the giant social media platform enjoys daily users of over 50 million. To empower its users, Reddit maintains a decentralized ethos.

The alliance with Ethereum is a result of an initiative called Scaling Bake Off of Reddit introduced in 2020. Reddit invited Ethereum projects to showcase how its scaling solutions would help to attract Community Points to the mainnet. The social media platform’s main target is to find a solution that can offer a way to attract considerable Community Points users to Reddit’s mainnet. Redditors can use Community Points to clinch a small share of their preferred communities.

Efforts to scale-up Reddit production

After achieving success from their initial collaboration, the Ethereum foundation and Reddit decided to take their relationship further. According to Jarins, they will put in efforts to scale-up Reddit production using Ethereum. They will use open-sourced technology to develop a product that anyone can use.

Ethereum commands several DeFi projects that run on its platform. Its value and popularity surged several folds. The net cap of the digital assets has improved by 50% in January alone.

To expand the use cases of cryptocurrency and blockchain, Ethereum is unveiled in 2015 summer. Ethereum provides support for decentralized applications beyond the initial scope of Bitcoin (BTC) say from crowdfunding and financial services to organizational structures.

Assumed as a global computer – Ethereum allows developers to execute/ develop smart contract powered apps. They are used to facilitate digital asset flow.

The native cryptocurrency of Ethereum – Ether offers an incentive structure just like Bitcoin to maintain or secure the network. It can also be used to safeguard the network from attacks of malicious actors and inefficient code.

Decentralized finance eliminates the need for traditional intermediaries like exchanges, brokerages, and banks. Technological solutions like blockchain and smart contracts will handle these institutions going forward. DeFi and legacy banking are different. The companies that operate in the DeFi segment developed a parallel finance system from the scratch. It offers retail users improved returns on savings and capital.

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