Source for BlockChain News

Monthly archive

October 2011

Litecoin Halving | What You Should Know Before the Big Event



Litecoin has grown impressively over the past couple of years and despite the slump in the crypto markets last year, it has managed to hold onto its position among the top five cryptocurrencies.

Key Analysis

However, the cryptocurrency is now entering one of the most critical periods in its history due to the halving that is going to take place in its blockchain next week. This is a measure to possibly ensure that Litecoin remains scarce, but at the same time, it is also important to point out that it hits the pockets of miners directly.

The halving is actually the halving of rewards for miners, who will receive half of what they used to upon completing mining one block. It remains to be seen how the market reacts once the whole thing is done and dusted.

The Litecoin halving is going to go into effect from August 5 and from then on, miners will get 12.5 LTC per completed block as opposed to the 25 LTC that they have been getting for all these years. Now, it goes without saying that such a measure is not a good thing for the actual miners, but when it comes to the ultimate price of Litecoin, it could actually do wonders.

>> Bitcoin Falls 30% from Highs: Analysts are Still Bullish

The halving needs to be looked into as a move that is akin to central banks raising interest rates and thereby making borrowing more expensive. Once the Litecoin halving does take place, then it is a safe assumption that the supply of Litecoin will go down and hence, crypto traders might pile on to the token before the actual event takes place.

It goes without saying that there is a distinct possibility of prices going higher once the halving takes place. That being said, if the actual miners continue to mine at the same rate as they were before, despite the lower rewards, then there is going to be no effect on the price of LTC at all.

Featured image: DepositPhotos © Violka08

If You Liked This Article Click To Share

Bank of Canada Exploring Possibility of Launching a Digital Currency

Bank of Canada

Bank of Canada

Bank of Canada, the Canadian central bank, is exploring the possibility of launching a digital currency that would replace cash and track how people spend their money.

The aim of the proposed currency would be to mitigate the “direct threat” posed by cryptocurrencies to the economic sovereignty of governments and central banks, an issue that has featured prominently in the headlines recently amidst intense regulatory pushback on Facebook’s proposed coin, Libra. The proposal was pitched to Stephen Poloz, Governor of the Bank of Canada, and its board of directors in a presentation entitled “Central Bank Money: The Next Generation.”

The presentation, which was a culmination of two years of research, described cryptocurrencies as “a direct threat to our ability to implement monetary policy and lender of last resort (LOLR) role.” It also argued for the benefits of a Bank of Canada controlled digital currency, which includes the convenience and security of wireless payments as well as the ability to help authorities collect more information on spenders. “Personal details not shared with the payee, but could be shared with police or tax authorities,” the presentation reads.

>> Telegram to Delay the Launch of TON Due to SEC Meeting

While Bank of Canada has not made any official decision on whether to launch these proposals, the consideration of the topic comes at a time when Libra is being challenged on an almost daily basis from regulators and lawmakers in both Europe and North America. Facebook’s CEO Mark Zuckerberg will testify before congress next week in defense of the proposed digital coin, and he faces an uphill battle given that the chair of the congressional committee, Maxine Waters, drafted the “Keep Big Tech Out of Finance Act.”

While some politicians are staunchly opposed to Libra, such as French Finance Minister Bruno Le Maire, who described it as “unacceptable” and promised to block its development in Europe, Bank of Canada appears to be taking a more measured approach. This is similar to other lawmakers in Europe, like Executive Vice President of the European Commission Valdis Dombrovskis, who argued for a common approach to regulating cryptocurrencies.

Featured Image: DepositPhotos © belchonock

If You Liked This Article Click To Share

Telegram to Delay the Launch of TON Due to SEC Meeting



Over the past few years, Telegram has become an important part of the crypto ecosystem due to its use as a communication platform for traders as well as market enthusiasts. Hence, it did not come as a complete surprise when the encrypted messaging service platform announced the launch of its own blockchain, the Telegram Open Network (TON).

Major Details

However, it seems to have run into issues with the all-powerful Securities and Exchange Commission. In a new development, the company told its investors that the date of the launch is going to be pushed back from the initial deadline of late October this year.

The company has now stated that the deadline for the launch has been deferred to April 30, 2020. The problem lies in the fact that the SEC has deemed its coin offering worth $1.7 billion to be illegal, and that has put the company’s project into disarray. The tokens for the TON blockchain, named GRM, were sold to qualified investors in two separate rounds, and the sum raised would have helped Telegram in further developing the platform.

The company abided by the SEC rule to sell it to qualified investors only, but since the same investors can actually sell the tokens before the launch, the regulatory body has deemed the whole thing illegal.

>> eToro Launches Twitter Sentiment Trading Portfolio

More importantly, the SEC has classified GRM as a security, and hence, the whole thing is entirely under its purview at this point in time. Telegram would now need a vote from investors in order to extend the date of the launch, and it remains to be seen how the whole thing pans out. Telegram spoke about the purchase agreements as well in its press release.

The company stated, “In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”

Featured image: DepositPhotos © prykhodov

If You Liked This Article Click To Share

Facebook Libra Must Follow US Rules, Says Treasury Official



It was back in July that Facebook’s Libra was announced and ever since the announcement, it has become the subject of intense scrutiny from lawmakers. It has not only led to the scrutiny of the entire cryptocurrency project announced by Facebook (NASDAQ:FB) but that of the wider cryptocurrency market as well and consequently, it has proven to be a massive disruption. It also coincided with the point at which Bitcoin price started giving up the momentum that it had gained in the first half of the year.

Key Details

In a new development, a key US Treasury Official has stated that Libra will need to comply with the highest regulatory compliance standards before it is launched.

Although regulatory clarity is something that many in the crypto space are eager for, it has given rise to a whole deluge of uncertainty and remains one of the factors why many tokens, including Bitcoin, have underperformed. Sigal Mandelkar, who is the undersecretary of Treasury of Terrorism and Financial Intelligence, spoke at a conference in Geneva and made the above-mentioned comments. However, more importantly, she not only spoke about Libra but went on to state that strict regulatory compliance is necessary for all cryptocurrencies that operate in the United States.

>> Coinbase Launches New $2 Million USDC Bootstrap Fund

According to reports, Mandelkar said, “Whether it’s bitcoin, Ethereum, Libra, our message is the same to all of these companies: anti-money laundering and combating the financing of terrorism has to be built into your design from the get-go.” Considering the threat of money laundering pertaining to cryptocurrencies, many regulatory officials have asked for greater regulation to be put in place.

At the conference, the official also said that it is important to put in more anti-money laundering safeguards in place in order to ensure that cryptocurrencies are not misused in any way. That being said, many in the crypto space are actually looking for more regulatory clarity so that institutional money can flow into it.

Featured image: DepositPhotos © Stockcrafter

If You Liked This Article Click To Share

Go to Top