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April 2016

Bitcoin Survey Shows Major Distrust Abounds for Facebook’s Libra

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Bitcoin Survey

Bitcoin Survey

A new Bitcoin survey asking US citizens about Facebook’s (NASDAQ:FB) new Libra stablecoin has yielded some surprising results. When compared to leading cryptocurrencies, only 2% felt they would trust Libra more than Bitcoin.

The results may surprise traders and also raise questions about Facebook’s newest endeavor.

Bitcoin Survey

A poll of 1,799 US adults was carried out since Facebook launched its Libra white paper in mid-June. The most shocking result was that, as stated, an overwhelming majority of those asked said that when compared with Bitcoin, they don’t trust Facebook’s Libra coin.

Only 2% trusted Libra more than Bitcoin; the rest of those asked trusted Bitcoin more and/or were indifferent in their choice.

Bitcoin Survey Shows Facebook has Damaged Trust

According to Coindesk, one of the concerns surrounding Libra is Facebook’s poor track record on preserving user privacy. Of those asked, 77% said they did not trust the firm with their data at all, citing incidences such as the Cambridge Analytica scandal.

Further, the group showed a huge disinterest in the Libra project altogether. A massive 86% said they weren’t interested in Facebook’s cryptocurrency and wallet when asked about them, with only 5% expressing interest.

Age also played an important role in the results. Libra resonates better with the younger generation; those between the ages 18–30 were the keenest on using Libra. However, of those aged 65 years and up, only 7% had any interest in Libra.

The survey was run by consumer insights provider CivicScience. The group said it needed more research to clearly identify why there are high levels of mistrust towards Libra.

The Bitcoin survey should be taken with a pinch of salt as many of those asked don’t actually own or trade in cryptocurrencies. Only 10% of the group asked had actually bought cryptocurrencies.

>> Tether (USDT) Surpasses Bitcoin for Exchange Activity

So Few People Trade Crypto

In a separate survey, the same body found that of more than 2,100 US adults when asked in July, 79% of those asked have heard of Bitcoin and cryptocurrencies in general. But again, only 6% of this group had actually invested in cryptocurrencies, and only half of those liked trading in the digital assets.

What are your thoughts about this Bitcoin survey? Are you shocked to see how few people actually trust Libra? Do you think its a worrying sign for Bitcoin adoption that so few asked actually trade in cryptocurrencies?

Let us know your thoughts!

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Libra Labeled a ‘Monetary Threat’ By Senior US Bank Executives

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Libra

Libra

Libra, the underfire planned cryptocurrency from Facebook (NASDAQ:FB), has been described as a monetary threat by senior US bank executives in a meeting with the Federal Reserve.

 Senior Bank Execs Opposed to Libra

Libra has been heavily scrutinized by regulatory bodies and financial institutions across the globe since it was first announced back in June and has been dealt a further blow following a meeting of the Federal Advisory Council this month. Members of the council include M&T Bank CEO Rene Jones, KeyCorp’s Beth Mooney, and Brian Moynihan, CEO of Bank of America.

“Facebook is potentially creating a digital monetary ecosystem outside of sanctioned financial markets — or a ‘shadow banking’ system […] As consumers adopt Libra, more deposits could migrate onto the platform, effectively reducing liquidity, and that disintermediation may further expand into loan and investment services,” banks said, according to the minutes of the council meeting obtained by Bloomberg.

Further Scrutiny from Lawmakers

These concerns were reiterated by two US lawmakers, Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill.), in a letter to the Fed’s chairman Jerome Powell. “The Facebook/Libra proposal, if implemented, could remove important aspects of financial governance outside of U.S. jurisdiction,” wrote Hill. The same letter also discussed the development of a digital dollar and enquired as to what legal, regulatory, or national security issues might prevent the Fed from developing a digital currency.

>> BitPay to Include Support for XRP This Year: What to Expect

Major Backer Reconsidering Position

The Federal Advisory Council’s apprehension towards Libra is just one of a series of regulatory concerns leveled at the Facebook-led project, which has thrown into doubt whether the coin will ever actually be launched. Yesterday reports emerged that Visa (NYSE:V) and Mastercard (NYSE:MA) were reconsidering their backing of Libra. Visa’s CEO Alfred Kelly stated that although the company had signed a letter of intent with the Libra Association, the company was not a member of anything and would not sign up until the association produced proof of compliance.

Last week, Mark Zuckerberg refused to confirm whether Libra would be launched as planned in 2020, creating further doubt as to whether the coin will ever see the light of day.

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Telegram Investors Stick With TON Plans Despite SEC Injuction

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Telegram

Telegram

Telegram investors have turned down the offer of a refund on their investment in the TON ICO despite an injunction by the SEC delaying the launch of the network.

Telegram, which is an important part of the crypto ecosystem due to its encrypted communication abilities, has been embroiled in a dispute with the US Securities and Exchange Commission, which argues that its planned blockchain, Telegram Open Network (TON), is a security, meaning the ICO was actually illegal. The commission issued an injunction last week preventing the company from launching TON as planned this month.

As a result of the injunction, investors in two separate ICOs have been offered the chance to receive 77% of their initial investment back, but have instead decided to back Telegram’s blockchain plans and have accepted an extension on the launch of TON until April 30, 2020.

“We are happy to share with you that we have successfully obtained the consent of a significant majority of investors in both the Pre-Sale and Stage A to extend the deadline for the Network Launch to 30 April 2020. We would like to thank everyone for your support. This extension allows us to proceed with the necessary regulatory work described in our last e-mail,” according to an email sent from Telegram to one group of investors.

>> Coinbase Earned About $2 Billion in Trading Fees Since 2012

Telegram began raising capital to fund its blockchain project from two separate offerings, which took place between January and March of last year. The company reportedly raised $1.7 billion USD from the sale of 2.9 million Grams. One billion of these tokens went to a group of 39 US investors, meaning approximately $424 million of Telegram’s capital came from the US, which falls under the jurisdiction of the SEC.

A court hearing was due to take place today on the question of whether Grams constitute a security, but that has now been pushed back until February 19, 2020.

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Grayscale Investments to Make Biggest Transfer in Crypto History

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Bitcoin

Grayscale

According to Forbes, Bitcoin and cryptocurrency asset manager Grayscale Investments is about to make the biggest transfer in cryptocurrency history.

The asset manager is planning on moving billions of dollars worth of holdings today, and the destination is US crypto wallet and trading platform Coinbase. Should the transfer go off without a hitch, it will mark the largest single-day transfer of cryptocurrency assets ever.

Grayscale Transfers Billions in Cryptocurrency

New York-based Grayscale has announced that Coinbase Custody will serve as custodian on the $3 billion-worth of underlying assets. The entire transfer will take fewer than 12 hours to complete and comprises of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), among other major tokens.

The company claims to be the world’s largest Bitcoin and digital currency asset manager. Custodian Coinbase Custody, operates as a standalone, “independently-capitalized business to Coinbase.” It is now tasked with overseeing the transfer.

Also included in the transfer is “Grayscale’s publicly quoted cryptocurrency trusts and its Grayscale Digital Large Cap Fund, which provides exposure to Bitcoin and crypto through a market-cap-weighted portfolio.”

The transfer comes at a volatile time for cryptocurrencies everywhere. Bitcoin’s resurgence to over $10k per coin has spurred on a bullish sentiment regarding the future of digital assets. Also, the pending arrival of Facebook’s (NASDAQ:FB) new Libra coin has spurred regulators into action.

Cryptocurrency is Growing

In a report issued by Grayscale, the company found that 36% of US investors would consider buying Bitcoin. This equals roughly 21 million investors, signaling a sizeable market for the coin.

>> Crypto Derivative Platform FTX Introduces Alternative to Short Alts

The company reported recently:

“Investors are constantly looking for new ways to diversify their portfolios as traditional assets and markets have begun to move more closely in sync with one another.”

Earlier in July, the asset manager reported that it had $2.7 billion worth of assets under management. This represents an all-time high for the company and is also three-times more than reported in the previous quarter.

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