Tencent, the creator of messaging service WeChat, is investing 500 billion yuan ($70 billion) into “new infrastructure” based on emerging technologies over the next five years, according to market sources.

Tencent is a Chinese multinational conglomerate holding company founded in 1998. Its subsidiaries specialise in various Internet-related services and products, entertainment, artificial intelligence and technology both in China and globally.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets InnovationI

n an interview with state media Tuesday, Dowson Tong, Tencent’s senior executive vice president, confirmed the company had also earmarked investment for sectors such as cloud computing, artificial intelligence, and cybersecurity.

The sources said that it isn’t clear how much of the $70 billion investment Tencent will ultimately set aside for blockchain, nor has it elaborated on what specifically it will be investing in.

They added that the firm has acknowledged that its cloud offerings have been hit by the coronavirus-induced economic slowdown as the nation starts its return to normality.

BSN

The move comes a month after China’s Blockchain Services Network (BSN) was rolled out for commercial use. Blockchain is a critical part of the country’s tech strategy, and the government hopes BSN will form the backbone infrastructure for services that leverage the technology all around the country.

China’s steadfast support for DLT is paying dividends, Haipo Yang, founder and CEO of Chinese crypto exchange CoinEx, said in an interview.

He explained this unambiguous approach has helped create a “good environment for blockchain technology,” improving China’s credentials as an innovation hub and leading to the emergence of a vibrant blockchain investment scene.

Last year, Tencent launched a DLT-powered invoice system and received permission from the Hong Kong regulator to start work on a blockchain-based virtual bank.

Along with a number of its competitors, the firm also became a member of a new national committee to help set industry standards for blockchain technology.

Shopify's (NYSE:SHOP) platform allows its merchants to accept payments in bitcoin, Litecoin, Ethereum, and over 300 other types of cryptocurrencies.

It recently expanded that reach by partnering with cryptocurrency payments processor CoinPayments, which helps merchants process 1,800 types of cryptocurrencies.

Shopify claims the partnership will "make cryptocurrency transactions easier and more accessible while reducing transaction fees." CoinPayments CEO Jason Butcher declared the partnership would deliver a "seamless process for anyone looking to do business using cryptocurrencies.

"CoinPayments has processed over $5 billion in cryptocurrency payments since its founding in 2013 and provides clients with various APIs, shopping cart plugins, and digital wallets. Shopify's cryptocurrency expansion isn't surprising, but will this new partnership widen its moat?

How many people actually use cryptocurrencies for payments?

Cryptocurrencies like bitcoin have gained a lot of attention among speculators in recent years. However, the broad price swings -- which have ranged from about $500 to $19,000 for bitcoin over the past four years -- made them tough to accept as mainstream payments.

Last year, a survey by the Foundation for Interwallet Operability (FIO) found that only 30% of cryptocurrency owners actually used the coins for payments. The vast majority held the coins as investments.

A more recent survey by the Economist Intelligence Unit and digital payments platform Crypto.com found just 34% of cryptocurrency users primarily used digital currencies for online payments.Crypto Radar recently claimed 6.2% of Americans owned bitcoin, and 7.3% planned to buy some in the future.

Yet the overwhelming majority (64.8%) didn't own any bitcoin and had no plans to buy any coins in the future. Another 21.8% hadn't even heard of bitcoin.

Those percentages indicate cryptocurrency payments don't appeal to mainstream shoppers yet. Nonetheless, many major companies -- including Microsoft, AT&T, and Expedia -- already accept bitcoin payments, though it's unclear how many customers actually choose those options.

Another part of its cryptocurrency expansion

Shopify also recently joined the Facebook (NASDAQ:FB)-led Libra Association, which wants to serve underbanked markets with its Libra cryptocurrency. That decision was surprising, since Libra had already lost many of its top members after regulators opposed its development.




IMAGE SOURCE: GETTY IMAGES.

However, Libra is being developed as a "stablecoin" which is pinned to fiat currencies instead of mining algorithms. That stability could make Libra a more viable payment option than bitcoin and other volatile cryptocurrencies, and tethering them to Facebook's Calibra digital wallet, Messenger, and WhatsApp could quickly expand its reach.

CoinPayments also processes payments in other top stablecoins like TrueUSD, USD Coin, and Gemini Dollar (GUSD). These currencies could be more appealing to merchants and shoppers, who can sleep easier knowing the value of their payments won't plummet or skyrocket overnight.

Shopify's partnerships with the Libra Association and CoinPayments could pivot its merchants from bitcoin toward less volatile cryptocurrencies. That process might be glacial and won't move the needle anytime soon, but it could enhance its broader platform -- which already serves over a million businesses in more than 175 countries.

Shopify's cryptocurrency partnerships should also widen its moat against Adobe's (NASDAQ:ADBE) Magento, which recently partnered with cryptocurrency payments platform Utrust to provide its crypto transactions to over 250,000 merchants.

Magento is arguably Shopify's toughest competitor since it's tightly integrated into Adobe's other cloud-based analytics, marketing, and advertising tools.

Gemini Trust Company, LLC (Gemini), a cryptocurrency exchange and custodian, announced on Thursday it is collaborating with Samsung Electronics to power the Samsung Blockchain Wallet and bring crypto to the fingertips of Samsung Blockchain Wallet users in the U.S. and Canada.

Gemini claims it is the first U.S. crypto exchange and custodian to partner with Samsung.

“Samsung is committed to establishing a simple and secure gateway for more individuals to enter the blockchain and cryptocurrency ecosystem. The Samsung Blockchain Wallet is a convenient and secure crypto-wallet that allows users to self custody their crypto directly on Samsung Galaxy Phones. By connecting their Samsung Blockchain Wallet to Gemini, users can buy and sell crypto, view their Gemini account balances, and also transfer their crypto into cold storage with Gemini Custody for the highest level of security.”

While sharing more details about the partnership, Tyler Winklevoss, CEO of Gemini, stated:

“Crypto is not just a technology, it is a movement. We are proud to be working with Samsung to bring crypto’s promise of greater choice, independence, and opportunity to more individuals around the world. Now, Samsung Blockchain Wallet customers can buy crypto in a simple, elegant and secure way on Gemini.”

The Samsung Blockchain Wallet and the Gemini Mobile App are available in the Samsung Galaxy Store for select Samsung Galaxy Phones.Founded in 2014, Gemini describes itself as a next-generation cryptocurrency and custodian that allows customers to buy, sell, and store digital assets such as bitcoin and ether. 

“Gemini is building a bridge to the future of money. We offer an industry-leading suite of crypto-native products and tools for individuals and institutions; enabling them to grow, manage, and use cryptocurrency holdings with world-class security, compliance, and customer experience.”

No doubt, the Blockchain technology, along with the adoption of cryptocurrencies, is getting bigger. The business end of the market is expected to reach $21 billion over the next five years.

Expectedly, professional services giants are now taking a larger role in tackling new challenges in the market, the Big Four firms and other leading brands are working with several crypto and blockchain firms on ways to combat interoperability, regulatory challenges and development of the technology.

Henri Arslanian, PwC’s global crypto leader, told Cointelegraph that the Big Four firms majorly have a vital role in the advancement of the cryptocurrency ecosystem, saying:“Although Bitcoin was designed with a trustless ideology, the reality is that the industry still requires trusted entities to catalyze the development of the ecosystem.

READ ALSO: Positive outlook as Africa FinTech attracts over $100 million in investments


Arslanian added that when he first joined PwC years back, few people took crypto seriously. However, he saw an increasing demand for crypto assets, with some businesses starting to accept Bitcoin payments from clients.

“Over the last couple of months, we’ve expanded our work. We recently closed the first-ever crypto fundraising deal at PwC, in which we led a $14 million Series A round for a Swiss-based crypto firm with Asian family offices. We are also the auditor for BC Group, a publicly listed crypto company in Hong Kong.”

BC Group CEO, Hugh Madden, also said that BC’s vision was to make use of crypto assets in Asia’s financial market. In turn, BC Group must set standards for compliance, security, and performance. Madden buttressed on the role of audits play by saying:

“Auditing, like regulatory clarity, provides confidence to all stakeholders that companies are operating transparently and adhering to expected industry standards. As the business of digital assets continues to grow and mature, and compliance and regulatory standards become more robust, auditors will continue to play a pivotal role.

”READ MORE: Blockchain technology expected to tackle Africa’s challenges across industries


KPMG United States blockchain audit leader, Erich Braun, further contributed by saying that a business’s blockchain system should be developed with the intent to meet both accounting and operational needs to meet with accounting standards:

“SEC issuers will want to design blockchain technologies to support the entity’s internal control over financial reporting. Being able to prove how these technologies achieve their aims in a well-controlled environment is critical to a successful blockchain strategy.

If the technology is not auditable, the immense benefits it brings, such as increasing efficiencies and cutting costs, may not be realized.”Henri Arslanian, added in his closing remarks that the Big Four firms are indeed the most important players for the crypto asset space.

He said:

“I believe the Big Four firms will serve as the bridge between the crypto ecosystem and the institutional world. It is good for both the crypto ecosystem and for professional services firms like ours as a new source of clients that we can help.”

China has been well aware that to become and remain a technology powerhouse, it needs to remain at the forefront of new technologies.

Blockchain, as one of the promising possibilities, dovetails with Beijing's current strategy of encouraging Chinese companies to seize the opportunity offered by digital technology.

Understandably, Beijing is creating its own world-leading and government-regulated digital currency.

People's Bank of China Governor Yi Gang told reporters in Beijing on Tuesday that internal pilot tests of the country's central bank digital currency-DC/EP, or digital currency and electronic payment-have been conducted in several locations, including Shenzhen, Guangdong province; Suzhou, Jiangsu province; the Xiongan New Area in Hebei province; and Chengdu, Sichuan province.After years of preparation, the tests were launched in April when the COVID-19 crisis stimulated digital economic operations.

The development of DC/EP was aided by the country's biggest State-run banks, including Agricultural Bank of China, which made the digital wallet app.

After top-level design and standard-setting, the DC/EP trials can check it for theoretical reliability, system stability, convenience, applicability and risk control. However, Yi said there is no timetable yet for the launch of a digital currency.

The digital yuan is structured on a two-tier monetary system-a central bank-issued digital currency for commercial banks and a commercial bank-issued digital currency focused on the public-and is intended to replace some of China's monetary base, or cash in circulation.

For those who might have reservations about this, it is important to point out that even US franchises that are established in China, such as McDonald's, Starbucks and Subway, are among the first to accept the DC/EP, and some government employees will be paid in digital currency in the four cities participating in the pilot program.

This State-regulated digital currency will have two main advantages. First, it will allow China to create an important soft-power tool; second, it will help China to control or minimize its shadow banking system. Shadow banking refers to financial activities outside the formal banking sector that are subject to lower levels of regulatory oversight and higher risks.

An additional benefit for the government is that a digital yuan would reduce its money printing costs. For commercial banks, DC/EP could facilitate more money transactions with lower costs. For the public, the digital currency would save on indirect transaction fees for interbank transfers.

The introduction of DC/EP shows that the country's plan to "seize the opportunity" of blockchain technology is not just talk but an actual plan in progress.

Even though it is too early to know whether the tests will be successful, the digital currency will be viewed as a breakthrough that will quite likely be imitated by many other governments.

 fact that the country is promoting blockchain technologies will present golden opportunities to many companies in its Hong Kong Special Administrative Region. As an international banking and financial hub, Hong Kong is ready to embrace blockchain technology and become a leader in financial technology.

Hong Kong is developing itself into a leading fintech hub in this regard. In March, the Hong Kong Monetary Authority announced the issuance of the first virtual-banking licenses.

Hong Kong's fintech industry has the potential to develop much faster now if it can leverage its involvement with the Guangdong-Hong Kong-Macao Greater Bay Area development plan.

When it specifically comes to DC/EP, Hong Kong can exploit its many advantages to create a regional digital currency. Former Hong Kong Monetary Authority chief executive Norman Chan Taklam proposed in mid-April a new regional digital currency based on a basket consisting of the Hong Kong dollar, the yuan, Japan's yen and South Korea's won.

China, Japan and South Korea are pushing for a trilateral free-trade agreement this year, and that, according to Chan, would lay the foundation for a regional digital currency.

This new currency would be different from bitcoin because it would be fully backed by the underlying fiat currencies. Specifically, the digital currency would be issued and redeemed against the four currencies according to a predetermined formula of calculating respective weights.

Blockchain offers many opportunities to both the Chinese mainland and Hong Kong. If DC/EP proves to be viable, China will become the first country to introduce a state-run digital currency, bringing about a more digital and convenient future.

The author has been a business analyst for a Hong Kong publicly listed company and holds a doctorate in Hong Kong real estate law and economics. The views do not necessarily reflect those of China Daily.

According to an announcement on Tuesday, Facebook subsidiary and Libra wallet provider Calibra has now been rebranded to Novi – a portmanteau of the Latin root words, “novus” meaning new and “via” meaning way.

The first wallet product from the firm is intended to hold Libra’s various digital currencies, once the Facebook-led initiative goes live.

Novi also comes with a design revamp that is said to represent “the fluid movement of digital currencies,” but maintains an element of the Libra icon in its logo.



The Novi logo (Credit: Novi/Libra)


“While we’ve changed our name from Calibra,” Novi said in a statement, “we haven’t changed our long-term commitment to helping people around the world access affordable financial services.” Just in case you were worried about that.

See also: Libra’s Long Road From a Facebook Lab to the Global Stage: A Timeline

Novi also provided a little insight into how the product will work. The digital wallet will operate as a standalone app, as well as providing interoperability with Facebook’s social messaging apps Messenger and WhatsApp.

Aimed to make sending funds to friends or family as “easy as sending a message,” transactions with Novi will arrive instantly, according to the announcement, and will contain no “hidden charges.” Novi didn’t offer any detail on what any standard transaction fees might be.

All Novi customers will need to be verified using government-issued ID, while “fraud protections” will come baked in. The wallet will initially be rolled out to a limited number of countries.

The release date still remains unclear, but the project hopes to introduce “an early version of Novi when the Libra network is available.”

The wallet and future financial services for the project will now be operated by a new entity, Novi Financial – a Facebook subsidiary that, it said, will operate independently from the social media giant at its Menlo Park, California, headquarters.

The Libra project has suffered a series of setbacks as regulators and governments set off alarm bells over the perceived risks of the project in terms of financial crimes, some even calling it a threat to monetary sovereignty.

In 2019, Facebook’s CEO, Mark Zuckerberg said his company, which leads the Libra Association, would quit if the project were released prematurely.

In the face of all the pushback, the Libra Association’s original model for its digital currency – a stablecoin pegged to a basket of fiat currencies and government bonds – was restructured in mid-April. The project will now issue a number of stablecoins based on individual national currencies in different markets.

Libra still has plans for a multi-currency stablecoin but it will be backed by the new stablecoins and not directly by fiat currencies.

There have been other issues too. In June 2019, major firms including Uber, PayPal, Visa, Stripe, MercadoLibre, Bookings.com and Mastercard were all reported to be backing Facebook’s new crypto project.

See also: Facebook Affirms Libra Commitment With 50 New Job Openings in Ireland

However, pressure from U.S. regulators and lawmakers in October prompted Visa, Mastercard and Stripe to withdraw their affiliations with Libra. It’s been adding more new members since then, though, including its first state-owned entity, Temasek.

Checkout.com also joined the project last month.

Libra has notably been on a hiring spree of ex-U.S. government officials – presumably to help smooth its regulatory path to launch – having signed up two former staffers at FinCEN in recent weeks

• An investor in cryptocurrency hedge funds saw nearly 99% of a $250,000 investment wiped out after his chosen fund collapsed during the market meltdown.
• "I don't really know what happened," Vlad Matveev told the Financial Times.
• Matveev detailed Cryptolab Capital's explanation in a Medium blog post: the fund took a leveraged position in March, and a lack of liquidity and rejection of sell orders stopped it from pulling out when crypto prices tanked.
• Crypto hedge funds lost an average of 26% in March, while traditional hedge funds lost about 8%, the Financial Times said, citing HFR data.
• Visit Business Insider's homepage for more stories.

An investor handed $250,000 to a cryptocurrency hedge fund last summer. His investment shed almost 99% of its value during the coronavirus sell-off in March, he told the Financial Times.

"I don't really know what happened," Vlad Matveev told the newspaper.

"They said they had a diversified set of strategies.

"Read more: RBC handpicks 8 tech stocks that could continue to grow revenues during the crisis and are built like 'rocket ships' for the next boomMatveev outlined Cryptolab Capital's explanation of what happened in a Medium blog post in late March.

The fund's algorithm plowed an amount equal to three times its managed assets into XBTUSD, a leveraged trading product that allows investors to speculate on the bitcoin-dollar exchange rate, Matveev said, citing the fund's managers.

When the market plunged, the managers tried to reduce their position but were thwarted by a lack of liquidity and their sell orders being rejected, Matveev continued.

The crypto exchange ultimately auto-liquidated all positions on March 12, he added.Cryptolab Capital didn't immediately respond to a request for comment from Markets Insider.

Read more: The investment chief of a $12 billion wealth-management firm breaks down how to build the perfect portfolio using just 7 ETFs — one designed to sidestep a dramatically 'overvalued' stock market

Many crypto funds were caught off guard when bitcoin and other cryptocurrencies tumbled by more than a third in mid-March. The funds lost an average of 26% that month, their second-worst monthly loss since at least 2015, the Financial Times said, citing data from hedge-fund researcher HFR.

"It's an understatement to say it's a bloodbath across the board," Eduoard Hindi, partner at Tyr Capital, told the newspaper.

Crypto funds trailed conventional hedge funds in March, as the latter lost an average of 8.4%, the Financial Times reported.

However, bitcoin and other cryptocurrencies have rallied strongly since then.

As a result, crypto funds are up more than 13% this year, the newspaper said, striking a sharp contrast to average losses of almost 7% for the broader hedge-fund industry.

Quick Take

• The central bank of France and Societe Generale have “successfully” tested blockchain-based digital euro
• Societe Generale issued €40 million (~$44 million) worth of covered bonds as security tokens and then settled them in digital euros
• The central bank said it will run more tests with other players in the following weeks

The central bank of France has “successfully” completed the first test of its blockchain-based digital currency.Announcing the news on Wednesday, the Banque de France said it ran the experiment with investment banking giant Societe Generale, which issued bonds as security tokens and then settled them in digital euro.

Specifically, Societe Generale issued €40 million (~$44 million) worth of covered bonds as security tokens on May 14, which were then settled in the central bank’s blockchain-based digital euros.

“This experimentation was performed end-to-end using blockchain infrastructures…It demonstrates the feasibility of financial securities being digitally settled and delivered in Central Bank Digital Currency (CBDC) for interbank settlements,” explained Societe Generale.

In April 2018 as well, the investment bank issued bonds worth €100 million (~$110 million) as security tokens, but those were settled in traditional euros.

The latest test transaction, conducted in digital euro, “is a new step in Societe Generale scaling up in its transformation, using the most innovative technologies, with the aim of better serving its clients,” said the investment bank.

France's central bank said it will now conduct more tests with other players “in the next few weeks” as part of its ongoing experiments with digital euro.

“The results of these experiments will be an important element of the Banque de France's contribution to the more global reflection led by the Eurosystem on the interest of [a CBDC],” said the central bank.

Banque de France launched its digital euro experimental program in April. At the time, the central bank said it aims to explore the potential of digital currency in "clearing and settlement of tokenized financial assets.

"Reiterating this point on Wednesday, the central bank said it is focused on “wholesale” CBDC uses cases. In April, the central bank said it is not looking to replace coins and banknotes.

The European Central Bank also once said that it is willing to issue its own digital currency if the private sector fails to make cross-border payments faster and cheaper.  

The Bank of France says it’s successfully completed an initial test of a central bank digital currency based on blockchain technology.

The bank says it’s the first in a series of tests to see if a digital euro has the potential to strengthen global financial markets. In the weeks ahead, the central bank will explore how the digital euro performs when sent from one bank to another.

The digital currency has been in development since late March. Its initial design is for use in the private sector and not for consumers.

The Bank of France is recruiting an economist with crypto experience and a strong background in game theory to help guide the launch process.

The central bank is following in the footsteps of China, which began a major trial of a digital form of the yuan in April.

DeFi projects seem to be well known in the cryptocurrency circles surveyed by CoinGecko, but usage is somewhat lackluster, especially for lending protocols.
Cryptocurrency price aggregator CoinGecko conducted a survey with almost 700 of its users to learn more about the trends in decentralized finance (DeFi).

The report, published on May 20, highlights that many cryptocurrency users heard about DeFi and some of its better known projects, but few of these are actually using it.Out of its sample of 694 respondents, only 11% said they haven’t heard anything about DeFi. 

Unsurprisingly, the most well-known and used DeFi app — as defined by CoinGecko — is MetaMask. About 72% of respondents heard of it, and 73% of them used it. The dominance can be attributed both to the platform-agnostic functionality of MetaMask, which is supported by all DeFi projects, as well as its longer lifespan. 

Exchanges at the helm
The highest awareness and usage statistics were found in the category of decentralized exchanges. The survey only analyzed automated platforms relying on liquidity pools, specifically Kyber, Uniswap and Bancor.

The highest awareness levels were for Kyber, which 57% of all respondents had heard of. Uniswap and Bancor effectively split the second spot, with 44% and 43%, respectively.

Uniswap appears to have the most efficient marketing funnel, as almost 48% of those aware of it have recently used it.

Kyber trails second at 42%, while Bancor has a much lower ratio of 23%.In comparison, lending platforms generally have worse usage statistics.

Maker is second only to Kyber in terms of awareness at 46%, but only 26% of them used it recently.

Compound was known to only 25% of respondents, of whom 32% said they had used it.

The bZx platform presents an interesting case, as 12% of respondents heard of it, but a very small percentage of them tried using it. This may be due to the infamy following their back-to-back hacks in February.

CoinGecko theorized that the lower usage was due to either not offering a compelling use case, or their products being too hard to understand.It is worth noting that the aforementioned usage percentages would make for excellent conversion rates for any marketing campaign, which normally deal with percentages below 10%.

This would suggest that active DeFi users were more likely to answer the survey, but the differences between categories are still notable.

Distrust of banks is common
CoinGecko’s data reveals a net distinction in attitude to banking between users familiar with DeFi and those who just heard of it. Of those who said to be familiar with it, 54% would stop relying on a bank completely, while the percentage is just 28% in those who are only casually aware.

The leading cause for those willing to ditch banks is the distrust in the banking system, at 31%, while 21% would do so because they consider DeFi to be a better alternative.




FELIPE ERAZO

• Technically speaking, bitcoin has stalled at a key resistance level: $10,000.
• The cryptocurrency had been widely expected to break higher in anticipation of a halving, which occurs every four years and is when crypto miners' bitcoin payout is cut in half.
• Despite bitcoin's recent sell-off, the cryptocurrency could see significant upside if it eventually breaks through the $10,000 price level.
• Visit the Business Insider homepage for more stories.

Technically speaking, bitcoin has stalled at a key resistance level: $10,000.The cryptocurrency had been widely expected to break higher in anticipation of a halving, but instead it sold off. A typical "sell the news" event.

A halving in bitcoin occurs every four years, and is when crypto miners' bitcoin payout is cut in half, limiting the supply of new bitcoin that is coming into the market.

Meanwhile, some investors, like Paul Tudor Jones, are investing in bitcoin to protect against inflation, and others, like Chamath Palihapitiya, are invested in bitcoin to hedge against deflation.

There's another set of investors who trade bitcoin not because of fundamentals, but because of technicals. Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends, according to technical analyst John Murphy.

Looking at bitcoin, classical technical patterns are playing out that help provide a roadmap as to where bitcoin may trade in the future if certain price points are hit.

The elephant in the room is the $10,000 price level, which is currently acting as both a psychological and historical resistance level for bitcoin.

Read more: The investment chief of a $12 billion wealth management firm breaks down how to build the perfect portfolio using just 7 ETFs — one designed to sidestep a dramatically 'overvalued' stock market

In technical analysis, large round numbers are defined as "psychological resistance levels," like $10,000 for bitcoin or 3,000 for the S&P 500.

Historical resistance levels are price points that have in the past acted as support or resistance.

For bitcoin, $10,000 acted as resistance in late 2018, throughout the middle of 2019, and earlier this year.If bitcoin is decisively rejected at the $10,000 level once again, downside support levels technical analysts will be watching are $8,000, $6,0000, and $4,000, representing potential drawdowns of 15%, 36%, and 58%, respectively.

Alternatively, if bitcoin manages to decisively break through $10,000, technical analysts will expect bitcoin to trade to its previous resistance levels, which are $12,000 and $14,000, representing potential upside of 26% and 47%, respectively.  

Katie Stockton, founder and managing partner of Fairlead Strategies, has bitcoin on her radar.

Specifically, Stockton is closely watching the $10,055 level, which represents the key 61.8% Fibonacci retracement level.In an e-mail exchange with Business Insider, Stockton said:

"A breakout above that level would target the 2019 high ($13,852), so would be a major bullish development for bitcoin. Intermediate-term momentum is positive, and there seems to be a growing appetite for risk in the broader market, supporting an eventual breakout."

Still, short-term gauges on bitcoin are neutral, according to Stockton, and she does note that previous bitcoin halvings were initially met with choppiness before experiencing sustained moves to the upside.Bitcoin traded down 2% to $9,520 Wednesday afternoon.

According to a new report by Luno and Arcane Research, the global cryptocurrency platform, the economic landscape across the African continent augurs well for cryptocurrency adoption.             

 The State of Crypto: Africa report says that rapid adoption of cryptocurrencies is likely in Africa in the context of high inflation rates, volatile currencies and underdeveloped banking infrastructure. 

Certain crypto assets combine the wealth preservation properties of hard assets such as gold with the portability of digital currencies.

Cryptocurrencies also offer lower-cost and faster remittance payments than is currently available. Traditional money transmitting services charge very high fees and intra-African payments are often slow.

The need is great, with expats sending around $48 billion back to families in sub-Saharan Africa last year. Although each country has its own particular set of circumstances, African nations share some key similarities and trends. 

The growing, young and mobile-native population on the continent is more likely to adopt a new financial system, and cryptocurrency has a particular role to play servicing the unbanked. But there are obstacles that must be overcome for cryptocurrencies to reach their full potential in Africa. 

“While much of the focus elsewhere has been on investment, speculation and trading, the utility benefits of cryptocurrencies are more needed in Africa than other continents,” says Marius Reitz, general manager for Africa at Luno. “Cryptocurrencies present solutions to many of the financial challenges in Africa.

The current context is ideal for an alternative money system to take root.

”Obstacles

Typical crypto enabling infrastructure in other regions such as nodes, mining operations, supporting merchants, ATMs and exchanges are not prevalent in Africa.

Along with regulation, these could be obstacles in cryptocurrencies reaching their full potential in Africa. Internet and electricity networks will require more investment.

Reitz also believes that the lack of crypto-specific infrastructure presents a huge opportunity to deliver the much-needed transformation of financial systems across many countries on the continent.

There is ample evidence that cryptocurrency is of much interest in Africa. According to recent Google Trends data Uganda, Nigeria and South Africa are ranked as 3rd, 8th and 13th on the topic of cryptocurrency respectively. Other surveys also highlight the growing appetite for cryptocurrencies on the continent.

According to one survey of internet users that owned cryptocurrency, 13 percent of South Africans aged 16-64 own cryptocurrency, making it third highest worldwide.

Nigeria ranked fifth at 11 percent. Another survey showed that 16 percent of South Africans had either used or owned cryptocurrency, ranking only behind Turkey, Brazil, Colombia, and Argentina. Tjoborn Bull Jenssen, CEO of Arcane research, says, “The State of Crypto: Africa is the most comprehensive case for adopting cryptocurrencies in Africa to date.

It highlights the significant opportunity to transform financial services in Africa based on the results of analytical examination.

” Luno is an example of a company seizing this opportunity as arguably the most in-demand cryptocurrency exchange servicing the African market.

Luno has 4 million customers, most of whom are based in Africa. Along with the report, Luno has unveiled a new documentary “Banking on Africa: The Bitcoin Revolution”, that follows the journey of some of Africa’s Bitcoin pioneers as they seek to leverage cryptocurrency to leapfrog world economic powers.

The documentary, which is available on Amazon Prime from Friday 22 May, is a 45-minute video featuring key crypto personalities based in Southern Africa.

These include, Riccardo Spagni (Fluffy Pony,  lead maintainer of the Monero project), Lorien Gamaroff (founder of blockchain-based social outreach project, Uziso and Centbee), and Alakanani Itireleng (founder of the SatoshiCentre, Botswana), with a glimpse at the spectrum of applications of Bitcoin and blockchain technology.

* For more information on buying, selling or storing cryptocurrencies, visit the Luno Learning Portal.

Mexican cryptocurrency exchange Bitso joined forces with the crowdfunding platform Donadora to launch a crypto-based donation system. The platform will help gather funds to buy food for the most vulnerable families affected by the COVID-19 crisis.

According to a report published by El Heraldo de México on May 15, each pantry delivered will be worth 150 Mexican pesos. They will have enough food to feed families of between four and six members for a week.Donation options include both fiat currencies and various cryptos, such as Bitcoin (BTC), Ether (ETH) and XRP.

Crypto donations gain popularity as a crowdfunding method

The local exchange stated that crypto donations are a very efficient method for crowdfunding. This is due to their decentralized nature and the fact that anyone in the world can participate in the initiative.Bitso released the following comments after the announcement:

“Donations through cryptocurrency wallets are easy, fast, and secure. Transactions are reflected in seconds, making it a very transparent method to ensure that your donation was received.”

Initiatives to fight COVID-19 continue to arise in the crypto space

Cointelegraph reported on another crypto crowdfunding campaign in April launched by the Italian Red Cross. The campaign aimed to build an advanced medical post to combat COVID-19 in Italy.

This endeavor successfully raised $10,000 in four weeks.Several crypto firms launched similar initiatives related to the COVID-19 pandemic crisis across the world, such as Binance, BitMEX and the Stellar Foundation.

On Friday, April 24, I led a continuing legal education program along with my colleague Emilio Cazares of Sheppard Mullin in San Diego and co-founder of the San Diego Blockchain Forum.

Invited by Fred Rocafort of Harris Bricken and Leonid Kisselev of the International Practice Section of the Washington State Bar Association, we attempted to explain the advent of blockchain technology, the game-changing dynamics of cryptocurrency and their geopolitical underpinnings.

We endeavored to undertake this in less than 90 minutes, over an online distance learning platform, and while we are all stuck at home.

Such are some of the conditions brought about by the coronavirus. The non-health-related conditions that is. It is no secret that the United States has not effectively tested, nor quarantined those with suspected coronavirus infection and their contacts fast enough, well-established policies for preventing viral pandemics.

Now the numbers of those afflicted have mounted exponentially; last week the number of deaths stateside surpassed the number of those killed in the war in Vietnam. They are now edging towards 80,000 at this writing. A newly released estimate based on the relaxation of stay at home orders in many U.S. states predicts that the number of dead from COVID-19 will surpass 134,000 in this country.

The People’s Republic of China, apparently, did not come even close to those numbers. And while Wuhan and other major cities were under various forms of COVID-19 lockdown, the testing for China’s new national digital currency, the Digital Currency/Electronic Payment (DC/EP), has continued, almost unabated.

This epic project that is backed by the Renminbi, China’s national currency, is the future of payments in Asia, if not the rest of the world. There is no need for actual (potentially virus-infected) cash as all transactions are completed with our smart phones.

This is Financial Technology (FinTech) which can remove the need for costly intermediaries and glacial transaction times. With China’s major banks and leading telecommunications, banks, insurance and social media companies onboard, the DC/EP is a seismic attempt at decentralizing payments, all run through the data industrial complex in the world’s second largest economy.

And with China’s economic reach expanding exponentially through its Made in China 2025 policy (leading advances in artificial intelligence, robotics, gene therapy, and 5G among other industries) and its hyper trade and infrastructure investment scheme, the Belt and Road Initiative, continuing unabated, there is much growth to come.

Efficiency through big data mining, resource allocation, and social engineering are all in the offing.Stateside, President Trump, at his daily coronavirus task force briefings, has touted that his administration is removing regulations to, among other things, speed along approval of medicine to treat COVID-19, to re-credential retired doctors and nurses, and to allow telemedicine services be practiced across state lines.

The administration has also injected trillions of dollars into the sagging economy through bailouts and stimulus packages. But in terms of using this pandemic to test a digital dollar, incentivize digitation of major industries, and kickstart new financial technologies, there is not much meaningful movement.

Early versions of the bill that would become the Paycheck Protection Program – both in the House of Representatives and the Senate – provided for a digital dollar payment to the estimated 17 million unbanked in the United States so that money could quickly get into the hands of those who needed it the most.

Those initial proposals never made it into the final legislation, leaving the U.S. to kick the FinTech can down the road a while longer.Meanwhile, while China returns to its version of normalcy and continues to deploy its DC/EP and the commercial Blockchain-based Services Network across the country, the new technologies for finance are being road tested and leveraged.

So much for the innovation economy staying in the United States. China banned cryptocurrencies and then banned them again and again since 2014, taking its time to study how they work.

Chinese leader Xi Jinping championed blockchain technology all the while, reading his country’s economic for the leadership of the coming Internet 3.0 by making smart investments and incentivizing partnerships among academia, the financial sector and technologists.

And then Mark Zuckerberg and David Marcus of Facebook spent some of last summer defending their company’s Libra project before lawmakers in Washington D.C. Zuckerberg threw China under the bus telling a skeptical Congressional committee that the U.S. government had better allow Libra to go forward with its proposed cryptocurrency, lest Beijing and its state-owned enterprises and affiliates take over the future of finance, and well, the new infrastructure for innovation.

The Chinese watched the hearings and its blockchain/cryptocurrency leaders and government authorities moved into high gear. By October 24, 2019 (now known as “Blockchain Day” in the PRC), the project was ready for testing in Suzhou and Shenzhen.

Now, just over half a year later, the project continues its momentum. The U.S. authorities are still trying to determine whether digital tokens are securities, utilities, commodities, or currencies and which agency, if any, is tasked with their regulation.

As the U.S. ponders these important issues for fear of being a first mover, it leaves the future of FinTech to others. This is the time for leadership and innovation from U.S. legislators and regulators.

Besides, what else do we have to do while we are all still at home?James Cooper is a professor at California Western School of Law, San Diego.

In a slide presentation, published Wednesday evening, Reddit revealed its plans to utilize the Ethereum network to incentivize the creation of "quality posts and comments." The points can be spent on premium features and used as a measure of reputation in the community, the social media platform said.

Users are rewarded based on their contribution to their favorite channels, with the community ultimately deciding how many points each user receives. Users can hoard their points or spend them on unique features such as badges, custom emojis and GIFs in comments.

“We continuously run experiments to explore features that engage our users and communities. With Community Points, we’re working exclusively with two communities to test this feature and gather feedback from our users,” a spokesperson for Reddit told CoinDesk.

The spokesperson did not name the two communities, but an image on the announcement suggests they are r/Cryptocurrency and r/FortNiteBR.

In addition, users will be able to leave a tip for comments they like or posts they see as valuable. Users will also be able to transfer community points directly to another Reddit member's Vault as well as any Ethereum wallet address.

In order to start contributing, users need to sign up to the "Vault," Reddit's local blockchain wallet, accessed via scanning a QR code through the official Reddit app.




Reddit's "Vault" where users can store and trade their community points

Source: Reddit

According to the post, community points are controlled by the user where users retain full control, meaning moderators nor Reddit itself can take points away or decide how they should be spent.

As it currently stands, it can be hard for other members to see how much one user has contributed to a community. Reddit's points hope to fix that by making the process more transparent with a total balance displayed next to their name.

There is a warning though. A private key is provided once a user creates their Vault, which is stored locally on their smart device. Meaning if the user doesn't create a back up of their key and loses their phone, they will be unable to access their community points, with Reddit claiming even they will be unable to help.

How's it work?

According to Reddit, community points are run by "a suite of smart contracts that manage balanaces, distribution/claiming and purchasing memberships."

They utilize and leverage existing parts of the Ethereum ecosystem, such as the ERC-20 token standards which in turn have been reviewed by Trail of Bits, an independent blockchain security firm.

The transactions on Ethereum cost "gas," which are tiny amounts of Ethereum's native crypto, ether (ETH). Reddit has stated that since most users don't own any ETH, the social platform is ready to cover the cost of gas "for now," for those using its in-built Vault, but those using other Ethereum wallets may be required to pay for the cost of gas themselves.

The platform said it plans to adopt a better scaling and gas solution in the future "as they emerge" while the rollout of community points remains in beta throughout the remainder of the summer.

Posts on both the r/Cryptocurrency and r/FortNiteBR subreddits by a Reddit administrator introduced the new tokens, called moons and bricks respectively.

It's unclear how far Reddit plans to take the tests or what its next steps might look like, but Wednesday's announcement is an expansion of an already-running trial.

A user shared details about the potential Community Points last month, though at the time the spokesperson said the program was confined to a single subreddit.

SA founded cryptocurrency platform Luno announced today that it has reached over four million customers worldwide, having added a million new users since September last year.In a statement today, Luno said it also saw the second-biggest increase of website traffic across all exchanges for the month of April, higher than the likes of Binance, Coinbase and Kraken.

The news comes during the halving of Bitcoin and follows the recent addition of Litecoin to the Luno platform, which joined Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP).

Luno said it also saw the second-biggest increase of website traffic across all exchanges for the month of April

Luno CEO and co-founder Marcus Swanepoel (pictured above) said in the statement that in the current climate, “it’s only natural to see that people are looking for alternatives to traditional forms of money”.

“Whether they’re looking for new ways to spend, or new assets to invest in, hitting this milestone — and the pace at which we’ve hit it – not only reinforces the trust users have in our platform but the growing appeal of cryptocurrencies,” said Swanepoel.Swanepoel founded the business in South Africa in 2013 with Timothy Stranex.

Today it is headquartered in London, with hubs in Singapore and Cape Town, and users across 40 different countries.It recently announced that its trading volumes doubled since the start of March, with a 50% rise in its number of active users month-on-month.

March also saw the platform’s biggest month in terms of trading volume since August 2019, and active users since April last year.Featured image: Luno CEO and co-founder Marcus Swanepoel (Supplied)

In its most basic form, trade is a complicated transaction — a buyer in one country, a seller in another, middlemen and agents to navigate a maze of shipping lines, customs officials, air freight and ground transportation. Banks on both sides often provide funding to complete the deal.

In normal times, global trade happens despite notoriously messy exchanges of legal paperwork. Add loads of restrictions during a worldwide pandemic and the wheels of international commerce have the potential to slow down.So we asked Natalie Blyth, HSBC’s global head of trade finance, to talk about how the system will withstand both the crisis in front of us and the changes it’s bound to bring.

HSBC is the top player in trade finance, a big business that rarely makes big headlines. The Asian Development Bank says there’s a trade-financing gap of $1.5 trillion globally, much of it money that’s not reaching small- to medium-sized companies and many of those owned by women.

“Trade is at an inflection point,” Blyth says. “While it has helped to lift over 1 billion people out of poverty over the last 25 years, we need to ensure that the new normal maintains trade as a force for good.

”Blyth talks about how blockchain is helping reduce letters-of-credit transactions from several days to a few hours. The technology has been around for a few years but the health crisis is accelerating its use. Other time-saving gains will come if authorities start to recognize other electronic trade documents such as bills of lading, she says.

“The global supply chains of tomorrow will be radically different from those we see today,” she says.Here are some other highlights from her responses to our questions:What’s separated the trade winners from the losers during this crisis so far?

“Covid-19 has significantly accelerated digitization and is serving as a catalyst for the growth of non-physical goods trade and the shortening of supply chains. It has underscored why working capital, cash-conversion cycles and supply-chain resilience have become strategic priorities.”What’s your advice to companies thinking about decoupling from China?

“Reducing dependence has been happening for some time. Tariffs, new technologies and the impact of changes in labor costs have all led to reconfiguration of supply chains.

However, we do not believe complete decoupling from China is either likely, or desirable.”What long-term changes do you see coming of this crisis?Some companies will “re-shore or near-shore” their supply chains for a variety of reasons:

• Automation and the move to digital technology “replaces the need for far-flung supply chains”
• Consumer preferences for “local, and so more environmentally sustainable goods”
• Governments demanding “more self-sufficiency in the areas of critical goods, or more directly as businesses operating with public money are charged with more domestic sourcing”
• “National champions will emerge as governments look to self-sufficiency to protect their citizens”
• “The pandemic will highlight the inter-dependencies between people and the planet and the need for a much lighter carbon footprint and a more balanced approach”
• 
  

—Brendan Murray in London

While Bitcoin has dominated the headlines in the cryptocurrency market since its introduction more than a decade ago, the sector is becoming even more concentrated among it and two rivals.

Bitcoin, Tether and Ethereum accounted for about 90% of trading volume on digital-asset exchanges this year among top-10 cryptocurrencies, up from 75% a year ago, according to researcher Messari.


Messari

The change follows a deep market crash in March, when Bitcoin as well as the more than 5,000 other coins listed on crypto exchanges nosedived. Searching for safety, many investors also flocked to Tether, which is a so-called stablecoin, whose value is supposed to not deviate much, and is used as a conduit to purchase other coins.


Historically, Bitcoin hasn’t dropped as much as many of the smaller coins during market crashes. It also just went through the so-called halving, when new coins issued to computers supporting the network as a reward were decreased.

Enthusiasts have also made the case recently that it’s a hedge against inflation with central banks seeking to boost growth amid the coronavirus pandemic.

Ether, meanwhile, is the leading digital ledger technology that allows for execution of autonomous transactions controlled by software. It’s widely expected to unveil new, enhancing technologies this year.

The Silicon Valley blockchain startup cLabs and its corresponding nonprofit, the Celo Foundation, just raised $10 million through a token sale to investors on the CoinList platform.

Roughly 509 investors from dozens of countries participated in the auction, paying $1 per Celo Gold (cGold) token. Most investors hailed from Germany, the United Kingdom, Turkey, India, Malaysia and Vietnam, according to a cLabs spokesperson.

The average buyer spent $19,646.37, which is enough Celo Gold to theoretically become a validator on the network. They often earned 50 bonus tokens for referrals.

The sale, which closed on Tuesday morning, took roughly 12 hours to complete. 

The cLabs token sale builds on $30 million in venture capital funding from firms like Polychain Capital and Andreessen Horowitz (a16z). Polychain, in particular, is among 77 entities already running Celo validator nodes.

[email protected]Celo's Mainnet RC1 voted on-chain to enable open validator elections which are now live. We're now among 77 validators all over the world signing blocks and securing the network.



Cheers to #Celo and their community on continuing this smooth, global rollout!!!




726:39 PM - May 2, 2020Twitter Ads info and privacy

21 people are talking about this

The buyers on CoinList expect to receive their cGold tokens on May 18, or at least have that option. CoinList co-Founder Andy Bromberg said buyers can automatically receive the cGLD in their CoinList wallets when the Celo mainnet goes live, or they can opt to send the tokens to an external, self-custodied wallet.

"As of Monday there's going to be live value on the network," said cLabs partner Vanessa Slavich.

Bromberg added this was the second successful token sale on the platform so far in 2020, after a $1.76 million raise for Solana.

Update (May 13, 2020, 18:27 UTC): 

This article previously stated that investors in the sale were accredited. This was not the case, though they had passed know-your-customer checks. The piece has also been updated to reflect details of the sale and launch plans.

• The COVID-19 crisis has revealed a general lack of connectivity and data exchange built into our global supply chains.
• Future resiliency will depend on building transparent, inter-operable and connective networks.

When it became clear that many of us would soon be working from home, a majority took a cursory glance at their home office set-ups and decided it needed upgrading.

What ensued was an unanticipated rush and surge of online orders for office desks, chairs, lamps and computer hardware. But such was the sudden spike that it has unsurprisingly caught suppliers large and small unprepared, off guard and exposed gaping holes in their ability to track purchases from one end of their supply chains to the other.

Some customers, who have spent no small amount on revamping their home offices are still waiting to do so, without the consolation of being able to see where their orders are, or when they can expect to receive them.

Of course, no one could have foreseen the unprecedented upheaval caused by the novel coronavirus (COVID-19) pandemic which has disrupted and dislocated economies and ecosystems across the planet but COVID-19 has brought supply chains to their knees.

And while it would be easy to point fingers at consumer-facing companies caught unawares, what’s important now is rebooting and rebuilding the global trade network by putting into practice the harsh lessons we are forcibly learning now.

What has become abundantly clear over the last three months is a general lack of connectivity and data exchange built into our global supply chains. Quite staggering considering the fourth industrial revolution (4IR) era and Internet of Things (IoT) days we are living through.

The fact we can track our Uber driver but not shipment placed three weeks ago from a department store less than 10 miles from our home is startling, humiliating and needs addressing.


BLOCKCHAIN

What is the World Economic Forum doing about blockchain governance in global supply chains?

If there were any lingering doubts over the value of blockchain platforms to improve the transparency of businesses that depend on the seamless integration of disparate networks, COVID-19 has all but wiped them away.

We should look at this healthcare crisis as a vital learning curve that can show us how to build transparent, inter-operable and connective networks.

We have fully developed, scalable tools and technologies at hand to connect every item ever produced to the Internet of Things, each with a unique digital identity. There should be no hesitation in accelerating this process.

Blockchain is supporting efforts around the globe to battle the virus. The technology is helping us ship medicines from pharmaceuticals to areas of the world stricken by the COVID-19 outbreak. It is improving the efficiency of movement permits to residents in a near-future of controlled social movement.

Closer to home, it’s keeping economies moving. It’s facilitating cash-flow management for start-ups and ensuring timely payments for their products and pilots. It’s even helping consumers track their home office chair to improve their quality of life under lockdown conditions.

The “visibility, traceability, and interoperability” of blockchain platforms to fortify, better connect and improve the resilience of supply chains will also be critical to getting the recovery underway in the world beyond the COVID-19 crisis.

Getting there won’t be easy. Indeed, research carried out by the Centre for the Fourth Industrial Revolution UAE (C4IR UAE), in collaboration with Accelliance, prior to the publication of a whitepaper at Davos 2020, analyzed the key challenges and success factors in wider blockchain deployment.

"We cannot afford to continue operating in the dark."—Mariam Obaid Al Muhairi, Project Manager at the Dubai Future Foundation

The more than 100 blockchain stakeholders from more than 60 public- and private-sector entities in the UAE, who shared their lessons and insights on blockchain deployment, said that an adaptive supply chain requires total and willing buy-in from all stakeholders, clear regulatory implications for businesses, and an educational awareness process at the beginning of the project.

A lack of the latter form some of the biggest roadblocks to implementing blockchain on a more comprehensive level, the research said.

In response to these challenges, the World Economic Forum, in association with its international blockchain community, including C4IR UAE, co-developed the Redesigning Trust: Blockchain Deployment Toolkit, with a supply chain focus.

The toolkit is designed to guide an individual, and their organization, through the development and deployment of a new blockchain solution.

The toolkit provides tools, resources, and know-how to organizations undertaking blockchain projects.

“The aim of the toolkit is to support decision makers in effectively deploying blockchain technology in their respective entities,” explained Nadia Hewett, project lead for Blockchain and Digital Currency at the World Economic Forum.

The toolkit, ahead of its release, was trialed with multiple entities worldwide, including the Abu Dhabi Digital Authority in the UAE to support their blockchain infrastructure development strategy.

The United Arab Emirates (UAE) is an important contributor to this toolkit made up of leaders from governments, companies, start-ups, academic institutions, civil society, international organizations and experts across the globe.

As detailed in the C4IR UAE whitepaper “Inclusive Deployment of Blockchain: Case Studies and Learnings from the United Arab Emirates”, the common challenges identified across the sectors remain tied to operational and regulatory questions, as opposed to technical factors.

The challenge is not about identifying the right blockchain technology for the specific need, it’s about providing the supportive structure around to adapt it - a challenge we see coming to the surface clearly in today’s COVID-19 world.

And, with over four trillion consumer products made and shipped around the world each year, we cannot afford to continue operating in the dark when it comes to keeping track of these products -especially when some of these products could save lives.

Coinbase CEO Brian Armstrong says a new bill being considered by lawmakers in California would have a major impact on digital assets and the future of finance.

The legislation seeks to change the meaning of securities under state law to exempt certain cryptocurrencies. Lawmakers and regulators in the US have struggled to clarify which digital currencies are securities within the context of the Howey Test, a federal metric used to determine if a particular asset qualifies as an investment contract.

According to the proposal, assets whose profits do not fully depend on the management efforts of third parties will not be considered as securities.

“This bill would create an exception from the above definition by providing that a digital asset meeting specified criteria is presumptively not an investment contract within the meaning of a “security.

” The bill would allow that presumption to be rebutted upon good cause shown by clear and convincing evidence by the Commissioner of Business Oversight, as specified.”

If approved, California would be one of the first states in the nation to set a clear definition of digital assets, and Armstrong believes it would position the West Coast as the main hub for a new financial ecosystem.

“This would be huge for California if it happens – ensuring the future of finance is built on the west coast.So many startups are struggling with this right now – the current securities laws are well intentioned, but stifling a lot of innovation right now.”

Bitcoin price dropped from $10,000 to $8,100, liquidating $200 million worth of longs. Here are three factors that triggered the fall.

Bitcoin (BTC) price dropped from $10,000 to $8,100 within just over a day, as it plunged by 9% in a single hour. It liquidated $200 million worth of longs, obliterating the futures market.

The three key reasons that triggered the immense Bitcoin correction were: strong multi-year resistance area above $10,000, whales moving to short the market on BitMEX, and extreme volatility heading into the halving.

$10,200 to $10,500 is a multi-year strong resistance area for Bitcoin

Since mid-2018, the $10,200 to $10,500 range served as a historically strong area of resistance for the top-ranking cryptocurrency by market capitalization.After its first breakout above $10,500 in June 2019, which led to a swift run to $14,000, Bitcoin failed to move above that level five out of six times in the last two years.





Bitcoin rejects $10,000 ahead of halving. Source: TradingviewWhen the Bitcoin price initially broke down at $10,100 on May 8, it signaled the rejection of a key resistance level and left BTC vulnerable to a steep correction.

As whales started to sell at $9,900, it led to a cascade of long contract liquidations primarily on BitMEX and Binance Futures.

In one hour, more than $200 million worth of longs were liquidated.

Whales quickly moved to sell BTC at the point of rejection

Almost as soon as the rejection of $10,200 was confirmed, whales started to fiercely short Bitcoin across major cryptocurrency exchanges.The open interest on the big four derivatives exchanges that include Binance Futures, BitMEX, Deribit, and OKEx plunged.

The term open interest refers to the total amount of long and short contracts open at a given time.



Open interest of BitMEX Bitcoin futures contract. Source: HsakaThe rapid decline in open interest meant that as selling pressure began to build up, it caused over-leveraged buyers in the futures market to get trapped in their positions.

The funding rate on Bybit, Binance Futures and BitMEX remained at around -0.05%. A negative funding rate when the price of BTC is going down means that the overwhelming majority of the market is holding short contracts, expecting BTC to drop further.In other words, many traders, especially whales, betting against BTC at a critical reversal point of a long-term trend triggered a sharp drop in a short period of time.

Massive volatility ahead of halving

Ahead of the Bitcoin block reward halving set to occur on May 12, trading activity on all major cryptocurrency platforms surged significantly.CME saw record-high open interest, Deribit recorded all-time high volume for its options contracts, and spot exchanges demonstrated 2017-esque volume in the last three weeks.

When many new investors enter the market in anticipation of a major event, it opens the market up for a steep selloff.

For instance, after the 2016 block reward halving, the Bitcoin price dropped by more than 30%, as traders reacted with a sell-the-news response.

A confluence of an over-extended Bitcoin rally to $10,000, whales front-running retail investors with a sharp sell-off at $9,900, and high anticipation for the halving are triggering a near-term pullback prior to the May 12 Bitcoin halving.

According to Coinbase’s status page, the exchange’s website, mobile app, and API website experienced partial outages beginning at 17:26 Pacific time (00:26 UTC). Ten minutes later, the San Francisco-based company said it was still investigating. 

Prominent Twitter accounts also noted Coinbase’s outage as the price of Bitcoin tumbled from $9,500 to $8,100. 

By 18:14 on the West Coast, service had been restored for the San Francisco-based company's consumer and professional trading sites. Reached Saturday evening, a spokesperson for Coinbase declined to comment beyond what was on the status page, which said the exchange was monitoring the situation. 

Other U.S. exchanges, including Kraken, reported all systems as operational during the weekend price crash. 

Coinbase experienced a similar outage last week when bitcoin rallied 15% to $8,900. At the time of publishing, Coinbase’s volume was not excessively high relative to other peaks in trading volume during the past two weeks, according to data provider Skew.




Coinbase trading volume

Source: Skew

Cryptocurrency exchanges like Coinbase tend to suffer temporary outages during periods of acute price volatility.

The weekend sell-off comes just days before bitcoin's next halving, a hotly anticipated once-in-four-years event whose implications for the cryptocurrency's price are a subject of debate in crypto trading circles.

Some 400 doctors and 900 health care workers have signed an open letter to the government, urging them to exercise caution regarding the roll-out by Proximus of a forerunner of the next generation of mobile data, known as 5G.

The six-page letter goes out under the name of the Hippocrates Electrosmog Appeal.

Last week, Proximus began to test its “5G Light” version of the new generation in 30 communes around Belgium, the timing of which the organisation criticises.

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“Even though it could be a simple coincidence, this seems indecent to us at a time when the people are fighting to overcome a human drama which concerns us all. At the same time, consumer organisations have been quick to publish articles claiming that the technology is not dangerous,” the authors write.

The population has been increasingly exposed to electromagnetic radiation over recent decades, from cordless telephones in the home to the current saturation of high-speed internet, mobile phones, wifi in the metro and the growing Internet of Things, the letter says.Now along comes 5G – or for the time being at least, a sort of 4G+ – which promises to be many times more powerful.

“However, the safety of this exposure has never been demonstrated,” the authors say. “On the contrary, evidence of its harmfulness is accumulating.

Since 2011, moreover, electromagnetic radiation from wireless technologies has been considered by the WHO as possibly carcinogenic, largely because of the increased risks of gliomas and acoustic neuromas in long-term users.

”The letter decries the way the precautionary principle has been ignored so far in the deployment of these technologies. The precautionary principle is a recognised strategy for approaching issues of potential harm when extensive scientific knowledge is lacking. It calls for caution and review before leaping into new innovations that may prove dangerous.

Critics argue that it is unscientific and an obstacle to progress.“When serious and possibly irreversible risks have been identified, the lack of certainty should not be used as a pretext to postpone measures to protect the environment and health.”

The group behind the letter concludes by calling on the government to apply the precautionary principle in order to protect the population, especially children, pregnant women and the elderly; introduce a moratorium on the deployment of 5G pending health impact studies; to raise awareness among citizens, in particular parents, adolescents and pregnant women, about the responsible use of wireless connected objects; to establish truly protective exposure standards; and to create a vigilance centre or a symptom inventory organisation relating to this type of exposure.

“Recent events make the situation even more worrying, but let us agree together that they can also be the occasion for new awakenings and advances in the field of prevention, which must today, more than ever, be the object of all our attention.

”Alan Hope

The Brussels Times

The largest event in the cryptocurrency calendar is almost upon us, with the Bitcoin block reward halving being just one week away, here is what the experts have to say about its perceived impact on price action.

According to Simon Peters, analyst at investment platform eToro, the halving could not only see the price of bitcoin rise, as it has done following previous halvings, but it could also result in a whole new brand of crypto investors.

Peters explains: “During and after the first halving in 2012, the key investors were those already involved in the asset class. The bitcoin investor base was almost exclusively made up of those in the know; blockchain scientists and data programmers as well as libertarians interested in the idea of a monetary system outside of political influence and central bank control.

”He then concludes that the halving will cause an increase in retail investors leaping into the world of Bitcoin as mainstream media will begin to focus on its potentially surging price, as it did in 2017.

The CEO of cryptocurrency exchange Luno is also bullish, insisting that volatility will return to the market tomorrow as much of Asia is off today.Luno’s CEO Marcus Swanepoel said: “We ended last week on a bullish note with Bitcoin pushing above $9,000 only for the price to drop over the weekend. 

However, this morning we have seen BTC again push above $9,000.




“This second move higher in a short period of time is positive and could be the first indication that we have now started the run into the halving.  Parts of Asia are again off today, but when they return tomorrow we will be just a week away from the halving so can expect to see an increase in volatility.

”But as previously stated in Coin Rivet’s daily technical analysis, a bullish breakout is far from certain as it still needs to trade above $9,600 to take out the diagonal trendline dating back to December 2017.

It’s also worth noting that price fell by more than 30% following the previous Bitcoin halving in 2016 before beginning to rally months later, so the effects of this year’s halving may not be as immediate as many suggest.

BlockFi co-founder and CEO, Zac Prince, believes the halving is “perfectly timed” as a result of macroeconomics having shifted as a result of the coronavirus.

“Bitcoin has already bounced back from its losses stemming to pandemic market reaction.

” He said.“It’s increasingly being seen as a safe haven investment to diversify portfolios and as more people see the value, on top of ongoing peripheral retail pressure, we believe we will see the price rise steadily, and at times rapidly, over the next few years.

”To keep up-to-date with coverage on the upcoming Bitcoin halving, click here.

In brief

• Brave has launched a crypto widget for Binance.
• It lets users handle their Binance affairs.
• More widgets are on the way, says Brave.

The world’s biggest cryptocurrency-friendly browser, Brave, today integrated a trading widget that taps into the world’s biggest and — to get the PR chumps back on our side — most noteworthy cryptocurrency exchange, Binance.

The widget is the “first exchange-browser integration of its kind,” Brave said in a blog post. It lets Brave users buy, convert and deposit cryptocurrency from Binance, as well as see how much cryptocurrency they have deposited on Binance. Any Americans using the widget must make do with Binance.US.

What distinguishes Binance’s widget is that the “widget content is built into the Brave desktop browser and is not loaded from Binance or any other server,” Catherine Corre, Brave’s Head of Communications told Decrypt.

This, said Corre, protects a user’s privacy, since Binance’s servers will only interact with the widget if the user’s signed in through the browser.Of course, a widget is…a widget, and this one is produced in Binance’s signature style of cumbersome.

Click “buy” on the widget, and you’ll get taken to...Binance’s website. And, to preview conversion prices, you’ll have to reroute to...Binance’s website.

The widget is the latest cryptocurrency partnership for Brave; the browser also has its own cryptocurrency, the Basic Attention Token. Each of its 13 million users is eligible to receive the Basic Attention Token, a cryptocurrency that rewards users for, among other things, watching advertisements.

Binance CEO says download Brave browser for your own privacy

The CEO of Binance, Changpeng Zhao, has urged his 500,000 Twitter followers to download the Brave browser in order to stay private online. In a tweet today, he said, "Sorry, Bitcoin isn't free...NewsTechnologyTim CopelandApr 10, 20202 min read 



Binance has been Brave’s champion ever since it announced the browser integration back on March 24. Changpeng Zhao, CEO of the monster crypto exchange, tweeted on April 10 that Brave’s browser will protect your privacy: “You just have to install the @brave browser.

”Brave has no plans to stay exclusive to Binance, however; “We plan on offering more widgets and will be sharing details soon,” said Corre.

A new patent application by Microsoft details a way to use bodily functions, such as brain activity, to mine cryptocurrency.

The application, entitled “Cryptocurrency System Using Body Activity Data” explains how a “brain wave or body heat emitted from the user when the user performs the task provided by an information service provider, such as viewing an advertisement or using certain internet services, can be used in the mining process.

”By tracking brainwaves when someone watches an advert, Microsoft hopes to use the data generated as a “proof-of-work.” This is the validation of a transaction, or the completion of a task, in a blockchain system, and the way in which creation of currency is validated in a cryptocurrency model.

"Instead of massive computation work required by some conventional cryptocurrency systems, data generated based on the body activity of the user can be proof-of-work, and therefore, a user can solve the computationally difficult problem unconsciously," the patent continues.

In order to access this validation data, the human user would need to have a sensor attached to, or installed in, their body. Microsoft envisages users being rewarded for allowing their bodies to be monitored in this way by paying them in cryptocurrency for performing specific tasks.

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As well as brain waves and heat, the patent also suggests using "body fluid flow" and "organ activity and movement" to track a range of tasks including using social media, search engines, email, visiting websites, or using chatbots. It remains to be seen what will happen with this patent; although it was published a month ago, it's still to be granted.

Even then, as The Register notes, large tech companies predominantly use patents as a means to defend against future copyright infringement, rather than directly turning them into products, so it is possible this will not see the light of day in the consumer space.

Since the outbreak in China of of the virus that causes the Covid-19 respiratory disease, experts around the world have been looking into how the pandemic will end up impacting the country, and how it will reshape its influence on the global scene.

In particular, many have argued that the Belt and Road Initiative (BRI) will be negatively impacted because of the urgency of focusing energies and allocating resources into the domestic domain to move toward the recovery of the Chinese economy, and society at large.

It is certainly reasonable to think that this crisis requires extreme measures that cannot be combined with conspicuous investments in other countries, which also face the same challenges.

However, it has probably been underestimated how a specific segment of the BRI could instead open up some opportunities that the decision-makers in Beijing do not want to miss.

The Digital Silk Road (DSR) – which is constituted of a broad set of projects in artificial intelligence, Internet of Things, 5G, fiber-optic cables and new technologies to construct a new digital economy – could gradually be expanded even during turbulent times, if fifth- generation networks are promoted and accelerated, as the Communist Party of China (CPC) wishes, equally at home and abroad.

In this framework, inevitably, private companies such as the national champion Huawei continue to play an active role to drive technological breakthroughs in spite of the adverse circumstances originated by the pandemic.

This role reflects the aspirations of the Middle Kingdom within the technological minefield, which in turn depends on the success of its tech-driver companies to materialize.

The Shenzhen-based company, leveraging its leadership in China, where it recently won 56% of the total China Mobile’s 5G contracts, could boost its resilience in front of the 1.4% growth in revenues registered during the first quarter of the year in virtue of the virus emergency, and could also proceed with the plan to access advanced economies in Europe further.

In January the UK, with some restrictions, agreed to allow Huawei to be included in the development of fifth-generation periphery networks to support the digital transformation of the country’s industrial apparatus. This clearly is a top priority to reinforce the weight of the country in the international arena after Brexit.

The decision has been attacked by critics, but will be not revisited in spite of the contextual changes. The company’s relationship with London, in particular, appears still to be promising considering the appointment of Micheal Rake to the board of directors of Huawei UK.


Rake, who previously was chairman of the British network operator BT and adviser to then-prime minister David Cameron, is an important figure promoting the reliability of the Chinese company in the West.

But the United Kingdom is only one component of a mosaic that Huawei wants to complete in its commitment to 5G in Europe, where countries have taken divergent positions on the adoption of Chinese technologies.

Even though Huawei claims to have contributed €2.5 billion (US$2.7 billion) to Europe’s gross domestic product in 2018, showing the relevance it has in the market, concerns related to national security persist in relation to the company’s links with the government of China, and the high level of dependence on the Asian giant’s technologies in many BRI countries that expose them to risky situations.

Specifically, in January last year, the European Union announced strict guidelines for 5G communication infrastructures in order to contain high-risk vendors, and even if Huawei was not expressly mentioned in the document, the reference seemed obvious in the light of US statements against allowing the company into the 5G networks of its allies, and President Donald Trump’s administration intensified pushback against the company founded by Ren Zhengfei.

Nevertheless, the final decision was left to the member states of the EU.France hasn’t started to roll out its 5G network, but Huawei is carrying on with its plans with an investment of €200,000 to build a new wireless communication manufacturing facility in the country, specialized in 4G and 5G equipment.

But while smaller operators such as Bouygues Telecom and Altice rely on Huawei, big French players such as Orange prefer to partner with Nokia and Ericsson.

In contrast, Telefonica and Vodafone in Spain took steps to cooperate with Huawei in the 5G area, further demonstrating the growing Chinese influence in that country. Germany, instead, aims to adopt an approach that could be supported by its various political entities.

A paper issued by the Christian Democratic Union to evaluate trustworthy suppliers and excluding interferences from foreign actors is, in fact, a signal that a decision is pending.

However, the dramatic juncture we are witnesses of highlights how the disruption faced by Huawei is temporary, because digital infrastructures and technologies will be much more critical to all of us in the near term, as tomorrow’s world will be powered by a great need of data flows and fast networks.

Governments will be required to act accordingly to bring connectivity to their markets through strategic partnerships. Many state actors could initially resist the idea of cooperating with Chinese telecom-equipment makers to build 5G networks, but the different ecosystem that will emerge after the pandemic will make hesitation a luxury that cannot be afforded if people, businesses and cities do not want to be left behind in a fast-changing environment.

In Europe, the gains stemming from 5G-enabled realities will soon overcome the barriers posed by political boundaries and doubts around the relation between Huawei and the CPC.

To achieve technological sovereignty and to maintain their global competitiveness, European countries will have to take a more definite position on Huawei, unless they are able to find and develop feasible alternative solutions – which are hard to study in acceptable short terms.

In this context, while the time variable becomes much more important in virtue of the negative impact generated by the virus emergency, Huawei could be essential, even at the cost of putting under stress a country’s ties with Washington.

Automatically, the features of the post-pandemic markets will make Chinese tech companies stronger, and will open new gateways to Huawei 5G in Europe.

If so, the Digital Silk Road will benefit from a heightened reputation of the Chinese players in the West, consequently leading China to gain terrain in its competition with the US.

At the moment, the tension between Beijing and Washington is evident, with the latter spreading accusations that China lacked transparency around the virus’ origins, and continuing its move on the tech domain, with the US Department of Commerce proposing rules to restrict exports of semiconductors and other technologies to China earlier.

But even taking into account the initiative launched by the United States in 2018 related to the Digital Connectivity and Cybersecurity Partnership (DCCP) in the Indo-Pacific region, the American actions in Europe will remain insufficient to make the Chinese technological offer unattractive in front of the broken shards that the Covid-19 pandemic will leave behind.

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The consortium contends that we must prepare for a future in which we are largely dependent on consumers with their electric cars, home batteries and heat pumps to stabilise the grid reliably and sustainably.


Blockchain platform is designed to help everyone gain benefits from the energy transition

A consortium of some of Europe’s largest transmission system operators (TSOs) are working together to develop a cross-border blockchain platform to give consumers access to future sustainable energy markets. 

The partners, TenneT (Germany and the Netherlands), Swissgrid (Switzerland) and Terna (Italy), point out that the electricity system increasingly relies on sustainable and fluctuating electricity generation and there is a need for new sources of flexibility to deal with the balance of electricity demand and supply. 

In contrast, many TSOs traditionally have been reliant on fossil fuel thermal power plants for this purpose. At the same time, energy consumption is also changing due to the increasing demand for electric cars, heat pumps and solar panels. All this leads to fluctuations in supply and demand. 

New world energy systems

 In tomorrow’s energy world, decentralised electricity producers, consumers and storage facilities such as electric vehicles, domestic batteries and heat pumps will help to cope with grid bottlenecks and balance fluctuations between generation and consumption. 

According to the partners, the Equigy blockchain platform will enable millions of European households to actively offer the flexible capacity of their electric vehicles and house batteries on the energy markets. This will stabilise the electricity system and in return they will earn money from the energy transition.

“Data can be exchanged between the devices, market players and grid operators. This means that everyone will soon be able to help realise the energy transition, and also benefit financially from it.”

As an open source solution, the platform will be available free of charge. “Now that the conventional power stations are closing, we are preparing for a future in which we are largely dependent on consumers with their electric cars, home batteries and heat pumps to stabilise the grid reliably, sustainably and cost-effectively,” said Manon van Beek, CEO of TenneT (Netherlands and Germany). 

“In order for all these devices to work together to balance the grid, the Equigy platform provides an important technical basis. With this platform, data can be exchanged between the devices, market players and grid operators.

This means that everyone will soon be able to help realise the energy transition, and also benefit financially from it.

” The Equigy platform will initially be launched in Germany, the Netherlands, Switzerland (Swissgrid) and Italy (Terna). The partners expect other European network operators to join as well.

• Around 90 percent of cryptocurrency firms have reported that they will be bankrupt in the next six months.
• The COVID-19 outbreak has halted networking and investments for most firms.
• Many of these firms do not qualify for government loans to stay afloat.

The Swiss Blockchain Federation has reported that up to 90 percent of cryptocurrency and blockchain firms in Switzerland could be bankrupt in six months without any government intervention.

This is due to the ongoing COVID-19 situation which has severely hampered the industry’s activities.

The COVID-19 outbreak has had dire effects not just on the global economy but on various sectors of industry as well.

British Airways has announced that they will be cutting tens of thousands of jobs over the next few months and many countries including the United States are predicted to face a recession.

While a global corporation like British Airways might have a difficult time bouncing back despite being a giant of the industry, smaller companies will find themselves even more vulnerable, especially if they are in an emerging industry.

According to the Swiss Blockchain Federation, about 90 percent of firms in the crypto valley are at risk of going bankrupt due to the current situation.

Many Cryptocurrency Firms are at the Risk of Closure

This revelation means that thousands of jobs are at risk across the board. Lorenz Furrer, Vice President of the Swiss Blockchain Federation, said that the crypto valley could very well ‘become the death valley’ if change does not occur.This information was determined by the Federation from reaching out to the 800 cryptocurrency firms in Switzerland and asking them how the pandemic has affected their business.




Source: Swiss Blockchain FederationThe survey, conducted between March 31 and April 3, 2020, reported that 80 to 90 percent said that they will likely be bankrupt in the next six months without the government offering some assistance.

Blockchain Startup Haven Takes a Hit

Switzerland has, in the last few years, become a haven for blockchain entrepreneurship. Its legislation has been favorable towards the industry, so much so that Facebook’s Libra project is based in the country.

The burgeoning industry provides employment to up to 4,000 people, many of whom are facing employment insecurity. 

Blockchain and cryptocurrency startups might be more vulnerable because the pandemic has significantly reduced investments across the globe and young companies do not have enough revenue to fall back on or qualify for government loans.




It is also worth noting that startups rely on networking events and the like for fundraising efforts as does the blockchain and cryptocurrency industry.

The Crypto Valley Association has already been forced to postpone its annual conference and a slew of similar events within the sector have been postponed or canceled in light of the outbreak.