In a recent tweet, TokenPay (TPAY) decided to remind once again everyone of their accusations against Neo (NEO)and XRP being centralized.
— TokenPay (@tokenpay) August 15, 2018
TokenPay comes after XRP and NEO once more
TokenPay had made a lot of headlines back in March when they claimed that Ripple and Neo are actually centralized currencies. According to them, the NEO Foundation is in full control of NEO and all its nodes. At the time, they claimed to have received a lot of hate for saying this. However, it would seem that TokenPay now believes that everyone should be able to see that they were right.
Decentralization is one of the key aspects of every real cryptocurrency, especially considering that the sole reason for their existence was to take power over money away from companies, banks, and other financial institutions. However, with the rise in the number of cryptos due to their popularity, it would seem that not all cryptocurrencies chose to abide by this rule.
With a situation like that, a large part of the crypto community has become concerned regarding centralization and decentralization issues. It would seem that everyone agrees that cryptos and blockchain projects should be decentralized. However, since there is a legitimate doubt regarding some of these projects, Ripple and Neo, in particular, many have opted to claim that they are not even real cryptocurrencies.
Are Ripple and Neo real cryptos?
The argument against NEO and XRP is based on the fact that they are not regular cryptocurrencies by design. As such, they are not compatible to even be considered real cryptos. Many claims that Ripple’s development and progress of its technology is not for the good of the crypto community, but for the benefit of its partners.
Considering that Ripple is mostly working with large banks and financial institutions like Santander Bank and American Express, many believe that it was created to allow banks to remain relevant in the new crypto era. Considering that crypto mining is actually a process of validating transactions, and Ripple cannot be mined, someone else needs to be in charge of validating its transactions. This is one of the biggest arguments of the coin actually being centralized.
Another argument against Ripple concerns its blockchain. The blockchain is not open. This is unusual for a cryptocurrency, and nearly every other coin out there has a fully open blockchain. Because of this, XRP was condemned by blockchain and crypto enthusiasts alike.
With a negative attitude towards Ripple and XRP growing, significant efforts were made in order to make its blockchain as decentralized as it is currently possible. XRP ledger’s current number of validators is 68, and this is their number after Ripple allowed some new ones to join. It was largely believed that this is done due to constant criticism regarding its centralization.
As stated, the XRP ledger currently has 68 validators, 21% of them is Ripple itself. While this is still not full decentralization, it is still proof that the coin is moving towards a decentralized state. At the same time, this move is allowing Ripple to leave the SEC’s attention. Willingly or not, the coin has to reach decentralization if it wants to remain relevant, and as such, it still has the potential to become a real crypto in the eyes of its critics.
Circle is weathering crypto-winter like every other crypto company, says CEO; refutes valuation rumours
Jeremy Allaire, the CEO of Circle, spoke to Fortune Studios about the company’s activities, and plans for the future, while also discussing how the company weathered the crypto bear market over the years.
Allaire explained that all companies in the crypto business were undergoing the same issue as Circle, and that “business was down,” for all. He continued,“When there’s no volatility or prices are down, then volumes are down… We had very significant growth year last year, even though there was a crypto bear market.”
Despite the bear market however, Allaire revealed that the company’s user base and revenues had increased over the previous year. According to Fortune, Circle was valued at $3 billion, after it acquired the cryptocurrency exchange, Poloniex.
There were rumors of Circle’s valuation falling below $1 million after its lead investor, Bitmain, faced issues of its own, following the fall in crypto prices. Additionally, Circle’s shares were allegedly selling at a steep discount due to the collapse in prices.
Allaire however, refuted the rumors, stating,“I can’t comment on specific transactions or specific prices or things like that, but the way that was characterized was inaccurate. There are secondary platforms, people list the things they are offering… but that doesn’t mean they’re actually trading and the way that was characterized was inaccurate”
Circle closed its acquisition of SeedInvest, an equity crowdfunding site, earlier this month. The acquisition will allow Circle to get into the regulated sphere of issuing securities, which would become a major part of Circle’s business in the near future.
He added,“We’re going to look at ways that we can bring the benefits of digital assets, crypto technologies, and blockchains into this whole area of issuing securities over the internet.”
Allaire also spoke about Facebook’s stablecoin, adding that he looked forward to the competition, and that internet companies issuing cryptocurrencies was a good sign for crypto in the long term
Galaxy Capital-Backed Caspian to Offer Crypto Derivatives Trading
Galaxy Capital-backed institutional trading and portfolio management platform Caspian is launching trading in cryptocurrency derivatives.
Caspian announced Wednesday that it has integrated its platform with the Deribit exchange to offer futures and options (F&O) trading in crypto assets.
Deribit offers futures and options trading for bitcoin (BTC) and ether (ETH), and also provides another perpetual swap product for bitcoin. The exchange does not charge for deposits and withdrawals and “up to 100x leverage”, Caspian said.
Robert Dykes, Caspian CEO, said:
“Our goal at Caspian is to provide crypto traders and investors the same standard of tools and service that exist in the traditional markets.”
The Caspian platform is connected to Deribit through an application programming interface (API) that supports “high volumes with ultra-low latency,” and provides traders with access to Deribit’s full options order book, Caspian said..
Caspian is a joint project between Hong Kong-based cryptocurrency investment firm Kenetic Capital and the U.S.-based based trading systems firm Tora.
The project raised $16 million in funding via a token presale last September, with backing from Kenetic Capital, Galaxy Capital, Octagon Strategy, Global Advisors and others.
Kenetic Capital managing director David Wills called Caspian “a frictionless on-ramp for crypto traders” at the time.
Back in 2017, the Chicago Board Options Exchange (CBOE) and CME Group both famously launched futures products.
Financial markets technology platform LevelTradingField launched a cryptocurrency derivatives exchange last August using the ethereum blockchain. And, in December, cryptocurrency exchange OKEx launched a bitcoin derivative product with no expiry date, meaning that positions can be held indefinitely.
CoinMarketCap Crypto Indices Launch on Nasdaq, Bloomberg, Reuters
Two cryptocurrency benchmark indices from data provider CoinMarketCap will launch today on financial data feeds from Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv) and Germany’s Börse Stuttgart, as well as on its own platform.
CoinMarketCap announced the news Wednesday, saying that the benchmark indices will be the “most comprehensive” crypto data offerings for the markets, covering the top 200 cryptocurrencies by market capitalization, one including bitcoin (BTC) and the other without.
The first index is named CMC Crypto 200 Index (CMC200), which includes bitcoin, and covers more than 90 percent of the global cryptocurrency market, the firm said.
The second, CMC Crypto 200 ex BTC Index (CMC200EX), tracks the market’s performance without the influence of bitcoin. The world’s largest cryptocurrency, bitcoin currently has just over 50 percent dominance of the total market capitalization.
“These indices will promote greater accessibility to cryptocurrency data in an easier-to-digest format,” said CoinMarketCap CEO Brandon Chez.
CoinMarketCap has partnered with Germany-based provider of financial indices Solactive for the effort, which will calculate and administer both the indices, as well as rebalance them on a quarterly basis, according to the announcement. Price data is being provided by CoinMarketCap.
Solactive’s head of sales Fabian Colin said that CoinMarketCap data would also give his firm the opportunity to develop custom indices for clients, adding:
“We are looking forward to developing more crypto indices in the future, which will optimistically result in investable indices and might lead to further products.”
Earlier this week, CoinMarketCap also added crypto asset letter grades to its platform from blockchain analytics startup Flipside. The Fundamental Crypto Asset Score (FCAS) metric developed by Flipside evaluates factors such as developer activity and a broad set of transaction data.