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NYSE Parent ICE Anticipates Over $20 Million Spend on Bakkt This Year

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Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, estimates it will spend more than $20 million this year in building Bakkt, its bitcoin futures trading and custody platform.

In an earnings call for Q4, 2018, on Feb. 7, Scott Hill, ICE’s chief financial officer, said the firm’s investment in Bakkt will result in $20 million to $25 million of its estimated expenses for the fiscal year 2019.

The estimation comes just six weeks after Bakkt announced a massive $182 million fundraise for its bid to roll out the trading platform with regulatory approval. However, the platform’s live launch has been postponed two times, a situation exacerbated by the recent U.S. government shutdown, as it works to get the green light from the Commodity Futures Trading Commission.

In the earnings call, ICE CEO Jeff Sprecher said the company’s investment in Bakkt is “a bit of a moonshot bet” and is not a typical ICE product. The platform’s infrastructure, though, has attracted some “very, very interesting” companies companies for investment such as Microsoft’s venture fund and Starbucks.

Sprecher continued to say he expects Bakkt to do other rounds of financing in the future. Currently, Bakkt is a separate company with ICE as the major investor, but it may be fully spun off at a later stage, he said.

Sprecher was once more vague about Bakkt’s launch timeline, however, and only said users could expect to see it live “later this year.”

With market anticipation of Bakkt’s launch building, last week fraudsters made an attempt to use the Bakkt brand to con users out of their bitcoin.

The impersonators sent out emails claiming Bakkt will be launched on March 12 and would hold another round of financing to raise $50 million. They asked prospective investors to register and send cryptos to a fake Bakkt website that CoinDesk confirmed has no official association with the platform.

Source:coindesk

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QuadrigaCX CEO’s Was Afraid of Being Kidnapped, May Have Set Up ‘Dead Mans Switch’

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QuadrigaCX CEO Apparently Feated For His Life Former Colleague Says

The QuadrigaCX controversy seems not to have an end. This time, a former colleague and friends, said that the CEO of the platform, Gerald Cotten, feared for his life due to the large number of funds he exclusively controlled. The information was released by Global News on April 19.

QuadrigaCX CEO Feared For His Life

As per the colleague, Cotten mused to him about being kidnapped due to the large fortune controlled. Adam O’Brien explained that it was difficult to know how seriously Cotten’s references were. O’Brien is the owner of a cryptocurrency business.

On the matter, O’Brien commented:

“Gerry was holding, we know, over $100 million, almost $200 million dollars in funds. That makes people do some pretty crazy things. And I think Gerry was aware of that, and I think he was kind of worried that something might happen.”

At the moment, the funds that people held in the QuadrigaCX exchange are locked and cannot be recovered. Mr. Cotten, who passed away back in December 2018, was the only person that knew the private keys of the wallets where the funds were stored.

O’Brien mentioned that he was shocked about Cotten’s death and that he doesn’t believe in conspiracy theories that suggest that Mr. Cotten faked his death. At the same time, he mentioned that he does not believe that customers will recover their funds.

As O’Brien explains, it will be good for Bitcoin and the industry to have one leg up in a dead man’s switch. A dead man’s switch would allow the funds to be moved to another address if the users do not enter their wallets for a specified amount of time. At the same time, the switch activates by itself and it sends the encryption codes to someone that the user designates before.

At the moment, there is an ongoing investigation related to the funds lost by QuadrigaCX. Nonetheless, there is no information about the funds lost.

Source:bitcoinexchangeguide

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CEO Arthur Hayes explains why BitMEX is not likely to add another crypto

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Arthur Hayes, the co-founder and CEO of cryptocurrency trading exchange BitMEX explains why his exchange is unlikely to add another cryptocurrency.

CEO Arthus hayes explains during a Youtube interview with cryptocurrency trader, Luke Martin, also known as the Venture Coinist, why BitMEX is unlikely to add another cryptocurrency to its exchange.

The CEO of BitMEX talked about developments in the crypto-space and the future of BitMEX and gave the answer to the much-asked questionin regards the addition of another cryptocurrency to BitMEX.

Read more: Interview with BitMex founder Arthur Hayes: “BTC to $50k within 2-5 years”

As BitMEX is hugely popular among Asian traders and numerous new tokens are added to the crypto markets at a rapid pace, the question everybody seems to have is when will BitMEX add more tokens to its current list, which only includes 8 cryptocurrencies at the moment.

However, despite many traders hoping for more coins, Hayes made it clear that BitMex would not be adding any cryptocurrency because derivatives required sufficient liquidity in the spot market.

Hayes started out by saying that BitMEX would never have as many coins as Binance due to that same reason.

‘So you know, in my opinion, the futures market should always be tighter and trade larger than the underlying of this derivative. And that only happens if you have sufficient liquidity in the spot market.’, hayes said.

‘So, are we gonna list like number 200 on CMC? No, because the market makers would be unable to hedge the risks.’

Binance has a long list of coins where the market makers want to price a derivative, in such a case, it will spread too wide, which according to the CEO is terrible for clients.

‘From a client perspective, as a terrible experience, I’m treating a leveraged product that has a wider spread, then the underlying on the spot market and I’m just increasing my risk of getting liquidated. And that’s something that we don’t want to do.’

Read more: ‘Bitcoin will crash to $2,000, followed by HODLers screams’

So now we know that BitMEX doesn’t seem all to eager to add any new coins out there. Asked and aswered.

Source:chepicap

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Arthur Hayes talks about upcoming interest earning product for BitMEX, reveals other products in pipeline

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The CEO and founder of BitMEX, Arthur Hayes, spoke on a Venture Coinist podcast and revealed future Bitcoin products that would allow users to earn interest by holding it, and the other plans of BitMEX.

Speaking about the product that will let users earn interest by lending their Bitcoin, Hayes stated that he was exploring, on a small-scale level, about making it work for Bitcoin. He stated:“I want to create a future where the highest quality exchange and miners issue short term Bitcoin bonds to the ecosystem.”

He said that this would create a “credit curve” for Bitcoin and people could start natively borrowing it and create businesses using Bitcoin without having an outside currency exposure. He also added that this would create a “ubiquitousness of the use of Bitcoin and other cryptocurrencies” and that it would propel the crypto-space as a whole to a new level.

Hayes continued that he would work on it and hoped that he could come up with a test transaction to gauge the interest of the audience for the fixed income market. He said:

“And from a selfish perspective of BitMEX, the fixed income markets are much larger than the FX markets… so if we can start to trade interest rate derivatives on our native crypto credit curve, which is comprised of the best quality companies in the space and that’s really going to take our platform to the next level and help us achieve our goal of becoming the largest exchange”

Speaking about the next upcoming product, Hayes gave his insights into the ability to buy Nasdaq Indices with Bitcoin. Hayes added:“We have funded a start-up in their seed around who I’m not gonna give out the name yet because I want to put undue pressure on them to deliver but hopefully, by summer of this year you will be able to use Bitcoin and purchase the S&P 500 and Nasdaq’s indices using Bitcoin.”

With the new feature, users can buy a swap for the available Nasdaq’s indices using Bitcoin and can sell their swaps to receive Bitcoin. Hayes said that he hopes to merge the crypto and the traditional markets. He also confirmed that this would be a side product and that it would be accessible through BitMEX.

 

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