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March 2008

Even if Facebook Launches GlobalCoin, It’s Going to Struggle: This is Why

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GlobalCoin

GlobalCoin

While not official, it looks like we’re going to see Facebook’s GlobalCoin sometime soon. And yet, if this rollout does happen, new research has indicated that the Facebook cryptocurrency will struggle to gain traction.

Here’s why.

Facebook’s GlobalCoin Hits Roadblock

The most recent piece of news about Facebook’s GlobalCoin came out last week, on May 24. It was at this time that BBC, a UK broadcasting company, said social media giant Facebook plans to launch its cryptocurrency GlobalCoin next year, even going as far as saying the company plans to conduct trials by the end of this year.

But of course, this hasn’t been publicly confirmed by Mark Zuckerberg’s company, and maybe that’s a good thing.

Yesterday, May 28, Diar, a cryptocurrency analytics firm, published a research report saying GlobalCoin will struggle out the gates as it won’t gain traction because of the demographics that use the platform.

According to Diar’s research, less than half of the platform’s users are under 35-years-old. Meanwhile, the number of users above the age of 65 has more than doubled since 2012. And here’s where things get tricky: retirees may be the main demographic on Facebook, but they are also the weakest in terms of interest in cryptocurrency. With that, Diar is confident that GlobalCoin will not be enough to pursue this demographic to enter the crypto zone.

Most people recognize that Facebook is falling in popularity with younger demographics. And while that does many things for the company, a new concern will be whether GlobalCoin will be at risk because of it. And with platforms like SnapChat gaining more traction than Facebook, the platform probably doesn’t need any more problems.

>> Bitcoin Price: Will the Bull Run Continue? What’s Next for the Digital Coin?

Thoughts?

Who knows, though. Maybe GlobalCoin will end up being the exact thing that was needed for baby boomers to start investing in cryptocurrencies. Or maybe not. Maybe GlobalCoin will flop. Only time will tell, I suppose.

What do you think about Diar’s research? Is it fair to say GlobalCoin will struggle because Facebook doesn’t have the right demographic for it?

Let us know what you think in the comments below!

Featured image: DepositPhotos © Shawn.ccf

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Poloniex Delists DigiByte (DGB) After the Founder Criticizes TRON

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DigiByte

DigiByte

Digibyte has been thrown out of the exchange Poloniex after critical words were said of TRON’s Justin Sun.

What’s Next?

The news must have come as a shock for many in the crypto sphere, and many believe that it came about because of Digibyte founder Jared Tate’s incessant criticism of TRON founder Justin Sun. TRON is the 12th biggest cryptocurrency in the world, and in a Twitter thread yesterday, Tate went on to criticize the project in no uncertain terms.

In the aforementioned thread, Tate called Sun a ‘crook’ and eventually went on to say that TRON is not as transparent as its proponents seem to think. Before long, Poloniex put out a tweet in which it stated that Digibyte was being dropped from the exchange and claimed the reason was that it did not quite meet its listing standards. It should be noted that reports claim that Poloniex is apparently linked quite closely with Sun’s network, and many in the crypto sphere are claiming that this was Sun’s handiwork.

The Twitter thread from Tate proved to be an extremely controversial topic and enraged hundreds of TRON backers on the social networking platform. The personal attack on Sun was one thing, but what seemed to really trigger many TRON supporters was the fact that Tate suggested that the crypto token is completely ‘premined’ and fully centralized in nature.

>> Ethereum Devs Propose Hard Fork to Address Impending Ice Age

Decentralization is the very basis of the crypto sphere, and such an accusation must have irked plenty of TRON supporters on social media. He cited research from other sources and went on to infer, “Tron was the most blatant con job we saw after diving into hundreds of projects and blockchain protocols.” Earlier on, the founder of Digibyte had also got into a tussle with Binance.

Featured image: DepositPhotos © AndreyPopov

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Bitcoin Generation Suspension | Why the SEC Took Action

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Bitcoin Generation suspension

Bitcoin Generation suspension

On Monday, April 29, the SEC said it’s suspending trading of shares in Bitcoin Generation. While a relatively unknown crypto exchange, news of the suspension has traveled far and wide. That said, it’s important to know this is a temporary suspension. In this article, we will discuss everything we know about the Bitcoin Generation suspension.

Bitcoin Generation Suspension: The Facts

Today, the US Securities and Exchange Commission said it was suspending Bitcoin Generation trading until 11:59 P.M. EDT on May 10, 2019. According to the regulator, it is concerned that Bitcoin Generation has provided the public with inaccurate information. More specifically, the SEC is concerned about a bond that the crypto exchange and mining firm “purportedly acquired from an entity based in the United Kingdom.” With concerns such as these, the SEC had no choice but to take charge, resulting in the temporary Bitcoin Generation suspension.

Releasing a statement on Monday, the SEC announced the suspension and also cautioned shareholders and broker-dealers among others to remain vigilant: “The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”

>> Aston Plaza: First Major Crypto-Bought Real Estate on Hold

Surprised?

The Bitcoin Generation suspension might come as a surprise to some, but what isn’t surprising is the fact that the SEC has once again taken action against the crypto industry.

Last year, the SEC suspended trading in the securities of American Retail Group, Inc. And while this particular suspension came because of the company making false crypto-related claims, it’s still not surprising to see the SEC cracking down on the crypto industry. When an industry becomes popular, it’s always going to attract government attention.

The upside, I suppose, is that the Bitcoin Generation suspension is only temporary. What do you think, though? Does the suspension impact you? Let us know what you think in the comments below.

Featured image: DepositPhotos © yourg

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LiteLink Tech | Digital Wallet and Virtual ATM Technologies

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LiteLink

LiteLink

After more than 50 years of dominating retail banking, ATMs might finally be on their way out—and a new force of disruption pushing its way in. The global rise in mobile payment platforms such as PayPal Holdings (NASDAQ:PYPL)’s Venmo and Square, Inc. (NYSE:SQ)’s Cash app has led to a steady decline in automated teller machines (ATMs) around the world. This has impacted traditional ATM companies such as NCR (NYSE:NCR) and Fiserv (NASDAQ:FISV). Whereas banks are now trying to keep up by rolling out ATMs with increased capabilities and “eATMs” featuring tablet-like screens and cardless access, a Mark Cuban-invested offering developed by startup Mercuri Systems—Spare CS, Inc.—aims to bypass the banking system altogether through “virtual ATM” services to tap the enormous underbanked population in the United States and the world. With a recent feature on “Shark Tank,” Spare is working on expanding their offering , having inked a deal with Litelink Technologies Inc. (CSE:LLT) (OTC:LLNKF) subsidiary uBUCK Tech to bring their virtual ATM capabilities to the revolutionary uBUCK Pay platform.

ATMs in steady decline

Spare comes at just the right moment in banking history. In our new world of digital money, the decline of ATMs has caused numbers to drop by 1% in 2018 to 3.24m, according to banking consultancy RBR. This downturn is now affecting the world’s largest markets, including China, the United States, Japan and Brazil, while growth in India has slowed significantly. ATM makers such as NCR (NYSE:NCR), a payments company that’s heavily leveraged in cash transactions, is suffering as a result. NCR (NYSE:NCR), which currently controls 27% of the global ATM market, put itself up for sale in May, attracting two bidders who subsequently walked away. There are no new bidders on the horizon. Meanwhile, financial services technology company Fiserv (NASDAQ:FISV), which connects over 412,000 ATMs in 50 US states through Accel, has actively branched out beyond its traditional ATM services business. In one of the largest deals in the history of digital payments, Fiserv (NASDAQ:FISV) recently announced plans to buy payment processor First Data for $22-billion in an all-stock deal.

While the rise of digital payments has impacted the popularity of ATMs, another pain point stems from the expensive convenience fees that out-of-network consumers are charged per withdrawal. Spare’s CEO D’ontra Hughes was himself frustrated at failing to find an ATM affiliated with his bank to avoid these high fees. He subsequently developed the Spare app, which allows users to withdraw cash at one of over 2,500 participating merchants in Los Angeles without needing a debit card, credit card, or a brick and mortar bank.

Spare is remarkably easy to use. First, users link their bank account to the app and enter the amount they wish to withdraw. Spare then populates its in-app map with merchants nearby that are willing to hand users money straight from the cash register, if they’re shown a one-time PIN. Users would pay a convenience fee depending on the merchant—invariably lower than the charges from third-party ATMs, which averages out at a pricey $4.69 in the United States for an out-of-network withdrawal.

Mark Cuban Invests in the Underbanked

The startup is starting to attract some major names. This year, Spare was featured on ABC entrepreneur reality TV series “Shark Tank,” impressing billionaire Mark Cuban to the point in which he invested $500,000 in Hughes’s offering. Specifically, Cuban saw the potential of Spare to access the world’s unbanked and underbanked (yet mobile connected) customers—an enormous untapped market.

According to the Federal Reserve, the underbanked accounts for 22% of US households, as well as roughly one-third of the world population. Cuban understood this demographic all too well, having been too broke to even open up a bank account when he first graduated. “You needed to have 200 bucks,” he recalled. “You needed this, you needed that. They didn’t give me one.” To Cuban, the banking system loaded the dice in favour of the rich, and Spare could turn this around.

Now, Spare’s latest deal with Litelink Technologies Inc. (CSE:LLT) (OTC:LLNKF) on the uBUCK digital wallet platform puts Mark Cuban’s vision one step closer—effectively levelling the financial playing field for the underbanked. Paired with Litelink Technologies Inc. (CSE:LLT) (OTC:LLNKF)’s uBUCK Pay, Spare’s app solution now offers under-privileged and underbanked consumers more options to deposit and withdraw their cash, transfer money, and make online and offline purchases. Through the platform, users don’t need to maintain a minimum bank account balance, nor do they have to pay the high fees charged by banks, ATMs and even mobile payment services such as PayPal (NASDAQ:PYPL).

That’s because Americans who want to use a service like uBUCK won’t need a bank account at all. Having recently partnered with US prepaid platform PreWay, uBUCK will be able to offer its customers the option of buying uBUCK vouchers at any one of roughly 7,000 convenience stores across the United States using cash. The partnership will allow uBUCK users to purchase vouchers at their convenience store and then withdraw their cash at a registered Spare merchant, all without interacting with a bank.

The World’s Most Accessible Digital Wallet

Litelink Technologies Inc. (CSE:LLT) (OTC:LLNKF)’s subsidiary uBUCK platform is just as potentially world-changing as the Spare app. As a global decentralized online payments platform and pin voucher solution, uBUCK is a viable payment alternative for consumers, businesses and merchants. uBUCK acts as a digital wallet app that manages digital and traditional currency and allows users to transfer uBUCK cash to friends, family, vendors and business associates around the world—all without paying a single penny in transfer fees, commissions or hidden charges.

Free overseas transfers is a ground-breaking concept on its own. For decades, countless individuals and multinational businesses have clamoured for 100% free, instantaneous and secure worldwide money transfers. PayPal (NASDAQ:PYPL)’s fees for international transfers and fees can get quite hefty, while banks and other services charge absurd fees for most wire transfers. Payment platforms such as PayPal (NASDAQ:PYPL) and Square (NYSE:SQ) have also rolled out mobile payment services Venmo and Cash app, but these services can be slow and limited, however, and inhibit international money transfers. Neither Venmo or Square (NYSE:SQ)’s Cash app supports international cash transfers. uBUCK users can make transfers anywhere around the globe and are secure and instantaneous.

By integrating with Spare—which will provide its QR code processing technology—uBUCK could well become the most accessible digital wallet in the world. This latest deal with Spare ensures that American users of uBUCK can also get their cash out in even more places than traditional prepaid cards, through Spare’s “virtual ATM” capabilities.

Meanwhile, the benefits of using uBUCK continue to pile up. Recently, Litelink Technologies Inc. (CSE:LLT) (OTC:LLNKF) subsidiary uBUCK signed a deal with Datable Technology to integrate PLATFORM³, Datable’s loyalty and rewards program into uBUCK’s digital payments platform. This lets uBUCK Pay’s account holders to also earn rewards for purchases and payments made within the uBUCK Pay digital wallet or on their uBUCK Mastercard. Considered the top rewards platform on the market, Datable features over 30 Fortune brands such as Universal, General Mills, Unilever and Toro.

All this means that underbanked consumers now finally have a viable alternative. For decades, banks have underserved a large proportion of the market, while unfairly punishing consumers with hefty fees. New technologies such as Spare and uBUCK promise to change all of this, and signals that the financial industry could finally undergo some serious disruption.

For a free research report on LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF), visit microsmallcap.com

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