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May 2007

Ethereum Classic (ETC) Suddenly Rockets 30% in a Week But Why?

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Ethereum Classic

Ethereum Classic

While Ethereum has been in the middle of a bit of flux due to the halving and other associated factors, Ethereum Classic has been surging. The coin jumped by as much as 30% over the past week and much of the gains have been due to the slew of positive news that has come about with relation to Ethereum Classic.

The coin started off the past week at $5.50, and today it has climbed to as much as $7.20 as more and more investors piled onto it. Here is a look at some of the reasons why it rose by that much.

Key Drivers

One of the biggest reasons for optimism with regards to Ethereum Classic is the upcoming Atlantis Fork that is going to take place on September 13 next week. It is believed that the fork event is going to improve security considerably on the blockchain, and that has become a source of excitement for many investors. In addition to that, the Atlantis Fork is also expected to lead to better compatibility with Ethereum as well.

Ethereum Classic Labs, which has been a center of research and development, has also made an important announcement. In a new development, it has emerged that North Block Capital, an investment group based out of London, has joined the Studio Program.

>> Investors Consider Cutting Ties with Facebook’s Libra Amid Regulatory Scrutiny

The association with North Block Capital could prove to be a hugely important event since the investment group is going to help sell the token in Asia. As everyone knows, Asia remains one of the most important markets for cryptocurrencies. As far as crypto usage and development are concerned, the continent is lightyears ahead of many other regions.

Last but not least, the Ethereum Classic event is also going to take place in the first week of October, and generally, the price of a token rises when such an event takes place.

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Libra Co-Founder Says It Isn’t Competing With Fiat Currencies

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Libra

Libra

Libra co-founder and chief economist of Calibra Wallet Christian Catalini has attempted to clear up misconceptions in relation to the planned digital coin in an interview with CNN’s Julia Chatterley.

The release of the whitepaper on Facebook’s (NASDAQ:FB) proposed coin back in June prompted massive debate from politicians around the world, most of which vehemently oppose the plan as they feel it poses a threat to the economic sovereignty of nations. Catalini has attempted to allay some of those concerns by saying that Libra is, at its most basic, a payment network that will allow for seamless and cheaper international transactions while also supporting several other services, such as the Calibra wallet.

Catalini also said that the overall aim for Libra is to provide banking services for unbanked and underbanked global citizens while adding that the increased transaction fee associated with the traditional financial system was also a contributing factor. He was also pressed as to whether the massive scrutiny leveled at Libra had deterred those behind the project, but said that he had anticipated such a reaction and that the association expected widespread criticism from regulators.

Despite believing that the majority of the controversy comes from Facebook’s involvement with the project, given the company’s shady history of data gathering, Catalini remained hopeful and said that “regulator’s scrutiny is productive. It helps us to think through about the challenges the project would face if successful in the future.”

Importantly for regulators, when quizzed on the subject of whether or not Libra is competing with traditional fiat currencies, Catalini said that because the project is a payment network, it will simply integrate traditional currencies into the platform so that transactions can be completed with them.

>> Ripple Finalizes $50 Million Investment in MoneyGram

Earlier this month, it was reported that the Libra testnet has surpassed 51,000 transactions since it was reset in September, with 34 projects having already been developed on the network. It remains uncertain as to when the platform will officially be launched, but it is believed that the Libra Association is aiming for a mid-2020 release.

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Stellar (XLM) Soars 18% as 55 Billion Tokens are Burned

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Stellar

Stellar

Over the course of the past few years, many cryptocurrencies have emerged that have demonstrated a definite use case, and one of those is Stellar (XLM). SDF or the Stellar Development Foundation, which looks after the entire ecosystem of the cryptocurrency, made a major announcement today, and it could have far-reaching implications.

Major Boost

The SDF announced a new protocol altogether with regards to its network on Monday and added that it has burned as many as 55 billion XLM (Stellar Lumens). The burning of those many tokens by the company is going to reduce the number of XLM in circulation, and it remains to be seen what sort of effect this will have on the price.

The whole project is apparently trying to become far more efficient in the near future, and the SDF believes that the move to burn 55 billion Stellar tokens will help in streamlining operations considerably. Considering the fact that XLM is now trading for $0.085 each at this point, the cost of the tokens that were burned is pegged at around $4.7 billion. However, the market has reacted positively to the move, and the price of XLM has rallied by as much as 18% at $0.0816 after the news broke.

>> Bitcoin’s 2017 Boom Largely Fueled by a Single Trader

The SDF published a post on Medium in which it explained the rationale behind the move. In the post, it stated that the move is going to make the ecosystem more efficient. It stated, “SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support.” It went on to state that out of the remaining tokens, the SDF is going to give away as many as 12 billion tokens to make Stellar more popular in the crypto sphere.

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International Central Banks to Question Libra Over Security Concerns

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Libra

Libra

Libra, the planned cryptocurrency led by Facebook, is to be questioned by officials from 26 central banks in Switzerland today.

Representatives from the heavily scrutinized project will face a grilling by officials from central banks, including the US Federal Reserve and the Bank of England, over the cryptocurrency’s “scope and design.” Since being announced in June, Libra has come in for significant perusal from government officials and regulators around the world due to concerns regarding the security of the Facebook-led coin.

Libra to Be Blocked in Europe?

Today’s meeting of the Committee on Payments and Market Infrastructure, a forum for central banks under the Bank for International Settlements, will be chaired by French ECB board member Benoit Coeure just days after the French Minister of the Economy and Finance pushed to block the development of Libra in Europe. The findings of the committee will be submitted to a meeting of the G7 nations in October.

“Stablecoins are largely untested, especially on the scale required to run a global payment system. They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high,” said Mr. Coeure following a meeting of EU finance ministers in Helsinki on Friday. However, he did offer some hope for the stablecoin, adding that Libra “has prompted fresh thinking on how to improve our payment systems.”

>> Coinbase Announces Dash Listing: What We Know

Co-Creator of Libra Responds

David Marcus, co-creator of Libra and current head of facebook’s Calibra, responded to the objections raised by Bruno Le Maire, the French Economic Minister, in a Twitter thread today. He countered Le Maire’s claims that Libra posed a threat to countries’ economic sovereignty by pointing out the fact that it is backed 1:1 by a basket of strong currencies—which means that for the coin to exist, there must be an equivalent value in reserve.

Given the intense scrutiny Libra has come in for since its announcement, it will be interesting to see where the project goes in the next few months.

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