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The New Coinbase Index Fund in Now Live

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n March, Coinbase launched its own cryptocurrency index, naturally based on the coins they offered. Now the San Francisco-based company announces the creation of an investment fund, called the Coinbase Index Fund, reserved for large investors, with a cut from 250,000 to 20 million dollars.

This is a product that can therefore apply to both private investors and institutional operators, such as investment funds in cryptocurrencies or hedge funds.

Of course the cryptocurrencies treated are only those related to the Coinbase platform, so they are:

Bitcoin weighed at 61.5%
Ethereum weighed at 27.2;
Bitcoin Cash, weighed at 8.2%
Litecoin weighed at 3.1%

Currently, Ethereum Classic (ETC) is not supported, although a few days ago it was officially announced its introduction in the bouquet of the exchange, causing the quadrupling of the volumes exchanged in 24 hours. However, its integration can be expected in a short time.

At the moment only accredited investors in the United States are admitted, therefore either private american residents or financial operators . All private investors must have assets of at least one million dollars, with incomes of at least $ 200,000 a year.

This will clearly limit the number of eligible investors but allows the offer to be reserved only for that range of operators who can accept the risk associated with an investment in cryptocurrencies.

The fund will be reviewed several times a year based on the performance of the various cryptocurrencies and security, based on their listing and development prospects.

The managerial work will be paid with an annual fee of 2%, based on the potential profits that can be produced by the fund.

So it is to be presumed that there will be a multi-annual commission compensation mechanism in the event of failure to reach the target.

After Coinbase Index Fund, the company is expected to launch more funds in the future, over a wider range of cryptocurrencies, accessible to all investors, but has not given any specific time period to the transaction.

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Coinbase Opens DAI Stablecoin Trading to Retail Customers

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Crypto exchange Coinbase will now let its retail customers buy or trade the DAI stablecoin, so long as they don’t live in New York.

The exchange announced Thursday that it was adding DAI on its website, as well as its Android and iOS apps, letting customers buy, sell, convert, trade or store the stablecoin.

Customers in every jurisdiction – except New York initially – can now access the cryptocurrency, which runs on top of the ethereum blockchain.

Although Coinbase did not explain why the token is not yet available in New York, it may be waiting on approval from the state’s Department of Financial Services, which in the past has reserved the right to approve tokens before they are listed on exchanges.

Unlike other stablecoins, DAI is backed by collateral on the MakerDAO platform, but still seeks to maintain a peg to the U.S. dollar, the exchange noted, adding:

“The relevant whitepapers explain that MKR and DAI tokens form a paired set of assets in which MKR provides governance, and DAI is a decentralized, collateral-backed stablecoin.”

Other stablecoins, such as the Gemini Dollar or the Paxos Standard, are backed on a 1:1 basis by dollar holdings.

Peg problems

The stablecoin has notably had difficulty maintaining its peg in the past, with MKR token holders voting repeatedly to increase the so-called “stability fee” in an effort to ensure that DAI continues to hold its peg.

As a result, the stability fee, which acts as a sort of interest rate on new DAI issuance, came close to 20 percent over a period of five months.

Borrowers pledge ether as collateral to take out DAI; when they want to get their ether back, they have to return their DAI, plus the stability fee, payable in MKR or DAI. Hence, increasing the stability fee incentivizes borrowers to return their DAI, reducing the supply on the market and theoretically driving their price back up to $1.

More recently, token holders voted to decrease the fee, but this decrease failed to activate due to a lack of voter turnout. As of press time, the fee remains at 19.5 percent.

DAI became available to Coinbase Pro, the exchange’s platform for day traders, in December, but now even entry-level users can buy it too.

It is the latest token Coinbase has listed in recent months, having just recently opened up XRP trading to New York residents.

 

source:coindesk

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Coinbase Commerce enables businesses to accept USD Coin [USDC] for payments

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Coinbase, one of the largest cryptocurrency exchange platforms in the U.S. in terms of users, announced that USD Coin could be used a mode of payment by businesses using Coinbase Commerce. The announcement was made on 20 May 2019 through their official Medium blog and stated that, “accepting” the stablecoin “gives our merchants many benefits of accepting cryptocurrency, but at a stable price.” Some of the plus points include no transaction fees, complete control of funds, and no chargebacks.

The platform announced on Twitter,“Starting today, businesses using Coinbase Commerce can now accept payments in USD Coin (USDC), a US dollar-backed stablecoin. Our merchants can now take advantage of the many benefits of accepting cryptocurrency but at a stable price.”

Further, the blog post stated that acceptance of the stablecoin would be as seamless as acceptance of cash for businesses. Additionally, this payment mode would not encounter the problems faced by credit card payments, considering it enables merchants to accept payments from customers anywhere in the world within minutes and without transaction fees.

Eliyahu Switzer, a Twitter user, said,“What are the benefits of accepting a centralized “cryptocurrency?”

That apart, CEO of Coinbase Custody, Sam McIngvale, revealed that Coinbase Custody was baking with delegated client funds since cycle 105. He stated that the firm had produced “over 100 blocks and captured a few steals too” so far, adding that their efficiency was more than a hundred percent.

@Stevenut, another Twitter user, commented,“Congratulations on making money with #tezos @CoinbaseCustody perhaps you might like to give something back and list #tezos so rest of us can benefit”

The announcement of Coinbase Custody providing institutional support for Tezos [XTZ] baking was made in March 2019. Offline staking support was extended to Tezos by the platform mainly because of its Delegated Proof-of-Stake architecture, along with high demand from the customers’ side.

Source/ambcrypto

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Worldwide crypto acceptance is within reach thanks to Coinbase Commerce’s USDC stablecoin integration

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Crypto as a method of payment has just gotten easier. Coinbase Commerce has expanded to include USD Coin as a settlement option, allowing merchants to accept crypto without transaction fees, chargebacks, or price volatility.

Coinbase Commerce, an app launched last year to facilitate merchant payments, now accepts Coinbase’s native USD Coin(USDC). The stablecoin was the result of a partnership between Circle and Coinbase in October of 2018.

The update represents a stride for crypto as a medium-of-exchange. Bitcoin, as the pioneer cryptocurrency, has relatively high fees and long transaction confirmation times. Meanwhile, the fiat-backed USD Coin allows merchants to get the benefits of crypto without the drawbacks.

Additionally, payments conducted in USD Coin have zero transactions fees and do not expose merchants to costly chargebacks. Unlike credit cards, merchants can accept USDC without a traditional bank account anywhere in the world.

Vendors have full custody over these funds and can accept payments directly to a wallet they control.

Stablecoin Integration

USDC is directly integrated into Coinbase and Coinbase Pro, allowing users to instantly convert between fiat and USD Coin. Coinbase Commerce is also integrated with other popular e-commerce platforms, such as Spotify and WooCommerce, making implementation within reach of hundreds of thousands of online merchants.

The move is another milestone for crypto as a method of payment. Previously, the cost or lack of interest caused merchants such as Steam and Twitch to reverse their decisions on accepting crypto.

However, the technology around payments improved drastically and projects such as Ethereum, Litecoin, Bitcoin Cash, and XRP are able to transmit payments via blockchain with much lower fees. As crypto as a mechanism of payment improves it is expected that adoption will follow.

-News Source

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