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December 2007

Binance Expected to Resume US Operations in the Next 2 Months

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Binance

Binance

When it comes to trading in cryptocurrencies, it is always far more effective if one can trade on a large exchange. Large exchanges offer a lot of options with regards to the range of cryptocurrencies, liquidity, and other services. Over the course of the crypto boom that started a few years ago, some exchanges have become the leaders of the industry and Binance is certainly one of those. It went on to become one of the biggest crypto exchanges and was also the preferred choice of many traders in the United States.

Key Details

However, back in June, the company announced that it was working on establishing a new division named Financial Crimes Enforcement Network, and hence, it was going to temporarily stop its services in the United States.

Regulations in the United States have always been a major issue for crypto exchanges, and Binance has also struck a partnership with BAM Trading Services so that it is compliant with regulations in the country. Considering the fact that it now has a US-based partner, Binance will be able to have a bigger presence in the market.

>> Bitcoin Hovers Around 10K After the Recent Correction: What Next?

In an interview with Cheddar, the Chief Executive Officer of Binance, Changpeng Zhao, stated that the crypto to fiat services that had been stopped in the United States could be resumed within the next two months. It is a significant development for all crypto enthusiasts in the country who have not been able to trade in the platform all this while.

Additionally, Zhao also stated that since a new partner is now available, Binance will be exploring ways to increase its presence in the American crypto market once it reopens. However, the resumption of services can never be predicted accurately, and hence Zhao refused to divulge the exact date on which the operations will resume. He said, “I don’t want to promise any fixed dates, but there’s a lot of work being done and there’s a lot of things going on in flux, but I would say in a month or two.”

Featured image: DepositPhotos © kongvector

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FCoin Closes Down, Reveals $130 Million Bitcoin Shortfall

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FCoin

FCoin

The growth in the crypto space over the past half a decade or so has been primarily fueled by the emergence of crypto exchanges like FCoin, among others. While that may be true, it should also be kept in mind that many such exchanges have floundered due to a variety of reasons, and such a thing has happened with the above-mentioned exchange.

Big Blow

In a new development, it emerged that the exchange has paused withdrawal and trading due to a significant shortfall in crypto assets. It is a problem that could potentially have an effect on the entire crypto space.

FCoin had adopted the ‘trans-fee mining’ model for the exchange, which, over the years, has been regarded as a controversial system. At this point in time, FCoin has a shortfall of as much as $130 million worth of crypto assets. The founder of the company, Zhang Jian, shared a long blog post in which he stated that the exchange is unable to process withdrawals.

The asset reserves on the exchange have apparently fallen short of its total liabilities. In the same blog post, Jian pointed out that the total shortfall is between 7,000 and 13,000 Bitcoin.

Massive Shock

The news has come as a massive shock to all crypto enthusiasts in China due to FCoin being one of the biggest exchanges in the country by trading volume. In addition to that, Jian pointed out that the exchange was neither hacked nor had it been scammed in any way.

>> Bitcoin Soars 50% So Far in 2020: Will the Momentum Continue?

He went on to state that it was difficult to explain the situation in a blog post. It is believed that due to the system in place at the exchange, FCoin users had possibly been awarded higher transaction-related mining rewards than they were entitled to.

Featured image: DepositPhotos © REDPIXEL

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Fidelity Investments will Trade Bitcoin in a Few Weeks!

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Fidelity

Fidelity

According to Bloomberg, Fidelity Investments is on the verge of buying and selling Bitcoin (BTC). Earlier this year, the firm began a custody service to store Bitcoin, but now it will evolve to trading.

Fidelity Investments Embraces Bitcoin

Fidelity is one of the largest asset managers in the world. Its newly-formed arm—Fidelity Digital Assets—will be the first of its kind to offer “over-the-counter trade execution and order routing for Bitcoin.”

The Wall Street giant is aiming its cryptocurrency trading product at institutional traders and will start with Bitcoin.

According to Fidelity spokesperson Arlene Roberts:

“We currently have a select set of clients we’re supporting on our platform. We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin.”

Wall Street Embraces

Fidelity joins brokerages E*Trade Financial Corp and Robinhood in offering cryptocurrency trading to clients. But where the latter two target retail investors, Fidelity is only targeting institutional customers.

The company released a study on May 2 stating that 47% of institutional investors believe digital assets are a good investment idea.

Mainstream Adoption

The news should be enough to spur on Bitcoin bulls. One of the greatest hurdles faced by Bitcoin is mainstream adoption. Price volatility, fraud, and theft remain major concerns for institutional investors and keep Wall Street at bay when it comes to crypto.

>> Bitfinex Plans to Sell $1 Billion Worth of LEO Tokens

Bitcoin is currently on an upward swing, having already grown more than 50% so far this year. The coin currently sells for $5,725 approximately according to CoinMarketCap. The month of May alone has seen the coin surge almost 8% as it heads toward $6,000 per coin.

What are your thoughts on Fidelity’s embrace of Bitcoin? Do you think it’s simply a matter of time before others follow suit?

Featured Image: DepositPhotos © melis82

Is Nobody Spending Bitcoin? Chainalysis New Data Reflects Rally

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Chainalysis

Chainalysis

Bitcoin is closing out the month near $8,500 USD. Surging more than 60% since the beginning of the month, its revival has caused a global stir. However, in the midst of the excitement, blockchain researcher Chainalysis is discovering a problem that perhaps most of us already know: hardly anyone is actually spending it.

Chainalysis Inc Chimes In

Data from New York-based Chainalysis is showing that “only 1.3% of economic transactions came from the first four months of 2019, little changed over the boom and bust cycles of the prior two years.”

Further, that “hardly anyone is using the world’s largest cryptocurrency for anything beyond speculation.”

Services that allow customers to pay for goods and services with Bitcoin are out there, but very few merchants actually want to use them. The reason remains the same as before—price volatility. A digital asset’s price may surge another 50% in a matter of weeks, and no one is ever sure of its true “value” because of this.

This is a double-edged problem that Bitcoin has always faced. It needs to gain mass appeal and so needs the hype; however, in doing so, it has “developed a culture of “hodlers” who advocate accumulation rather than spending.”

Yes, there are millions of dollars worth of Bitcoin out there, but it’s staying put on exchanges it seems.

Chainalysis Analysts

Kim Grauer, a senior economist at Chainalysis, said the following to Bloomberg:

“Bitcoin economic activity continues to be dominated by exchange trading […] This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”

>> Ripple (XRP) Records 5-Month High: Trading Volumes Continue Increasing

One example of this is Chainalysis’ tracking of service provider BitPay Inc. The crypto transaction processor processed $1 billion worth of Bitcoin in both 2017 and 2018. However, this figure is minute when compared to Visa. By comparison, Visa processed almost half a billion transactions every day last year. Further, the total transactions it handled in 2018 amounted to a whopping $11.2 trillion.

Bitcoin’s $1 billion expenditure, by comparison, is tiny.

What are your thoughts on this? Were you expecting Bitcoin spending to be so diminutive?

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