Connect with us

Cryptocurrency

Gate.io Raises $64 Million for Launch of New Exchange Cryptocurrency

Published

on

Crypto exchange Gate.io has raised $64 million worth of crypto assets in seven days for its own exchange cryptocurrency that won’t be launched on a blockchain for at least six months.

One of the oldest Chinese exchanges, Gate.io claimed on Monday that over the last week it was heavily oversubscribed with orders totaling $2.99 billion for the so-called Gate Points, which can be used for offsetting trading fees on the platform.

Moreover, each Gate Point further entitles a holder to receive 2.5 Gate Tokens (GT), the native cryptocurrency of Gatechain, the exchange’s yet-to-be-launched proprietary blockchain. Gate.io says it expects the network to go live in the fourth quarter.

According to a blog post published on April 1, the first phase of the Gate Points sale started on April 8 and lasted for seven days. As Gate’s fees are paid in tether (USDT), the U.S. dollar-pegged stablecoin, one Gate Point is worth 1 USDT in reduced fees. The points were purchasable with bitcoin, tether, ether, EOS, or the tokens of rival exchanges Binance (BNB) or Huobi (HT).

Marie Tatibouet, chief marketing officer of Gate.io, told CoinDesk in an interview that the exchange distributed 150 million GTs to successful Gate Point subscribers during the first phase, and in return, collected $64 million as prepaid trading fees. (The initial reward ratio of 1 Gate Point for 2.5 GT depreciated by three percent every day during the first phase.)

Gate.io was founded in 2013 under the name Bter.com by CEO Lin Han. It suffered a hack in 2015, which resulted in loss of some 7,000 bitcoin from its cold wallets.

Following the Chinese central bank’s ban on initial coin offerings (ICOs) and fiat-to-crypto spot trading in 2017, Bter.com closed its domain, rebranded to Gate.io and dropped fiat trading. The exchange shifted its focus to crypto-to-crypto and Chinese yuan over-the-counter (OTC) trading.

IEO bandwagon

Issuing an exchange token with a trading fee point system rather than a conventional ICO is not unprecedented, as Huobi also issued its Huobi Tokens (HT) in a similar fashion in early 2017. Binance, on the other hand, sold its exchange tokens BNB through a traditional ICO while BNB can also be used to offset trading fees.

But Gate.io’s plan comes at a time when exchange tokens are seeing notable growth in the crypto markets partially due to the emergence of initial exchange offerings (IEOs), which have gained traction on major platforms such as Binance and Huobi.

In fact, Tatibouet said Gate.io will announce a plan on Wednesday to launch its own IEO platform, similar to Binance’s LaunchPad.

She further claimed that on April 8, the day the Gate Points sales began, about $155 million worth of tethers were deposited to the platform’s USDT wallets overall.

Weirong Chen, an analyst from Beijing-based blockchain data analytics startup TokenInsight, said the recent price surge of exchange tokens has bolstered retail traders’ enthusiasm for the area.

She told CoinDesk:

“The demand is indeed correlated with the overall market condition, when exchange tokens have jumped by 150 percent in Q1. Thus retail investors’ anticipation for these tokens to yield a high rate of return is still positive.”

Such interest appears to have also caused an influx of USDT to Gate.io from rival exchanges such as OKEx and Huobi. The resulting scarcity of tethers on those exchanges drove up the stablecoin’s price to an average 3 percent premium over par value when Gate’s sale began.

For instance, for 1 USDT, the bid and ask orders among OKEx’s OTC market makers on April 8 centered around 6.95 Chinese yuan, or $1.03, while some even posted ask prices as high as $1.14 per coin.

Yet Chen said multiple reasons led to the price premium for USDT among Chinese traders, including the demand for Gate’s exchange tokens with a high expectation of return, but also bitcoin’s bull run on April 2.

Tradable promises

But, despite such seemingly high buying interest, it’s important to note that for the time being GT is at best a tradable sign or liability.

Because unlike Huobi’s HT or Binance’s BNB, which were issued as ERC-20 based tokens on the ethereum network at the time when they were sold, GT is not yet issued on any public blockchain with a verifiable contract address.

Based on Gate.io’s announcement, the exchange plans to issue a total of 1 billion GTs, 50 percent of which would be reserved and locked up for a year for research and development as well as marketing efforts.

Another 300 million would be allocated to users who subscribe to the exchange’s trading points, half of which were distributed last week.

Gate.io said trading of GT will be enabled at the end of April but deposit and withdrawal won’t be available until the launch of Gatechain.

As such, Tatibouet acknowledged that for the time being, there are no other ways to track and verify the movements of any GTs, including those that are said to be locked up.

“There will be proof on how this is issued, since not every technical detail has been worked out now,” she said.

Meantime, Gate.io has started the second phase of the Gate Point sales lasting for a week for users who have been on the platform for over a certain period of time. The exchange aims to raise another $23 million in prepaid trading fees this week.

“The trading of GT [for now] will be more like trading credit points that’s entirely closed,” Chen of TokenInsight said, concluding:

“Indeed, investors can’t see how much is really being issued or how much is circulating at the moment – that’s one risk factor.”

 

 

source: coindesk

 

Advertisement
Click to comment

Cryptocurrency

How is Elon Musk’s Favorite Cryptocurrency, Dogecoin, Performing in 2019?

Published

on

By CCN.com: Elon Musk, who earlier this year called Bitcoin “brilliant”, revealed his favorite currency earlier this month.

He said in a tweet:

Dogecoin might be my fav cryptocurrency. It’s pretty cool

He made the tweet after the official Dogecoin account asked who should become the cryptocurrency’s next CEO (it was a joke). Musk received 54 percent of the vote. CCN covered the tweet here.

The official Dogecoin then anointed Musk the CEO. “Looks like you’re the CEO now @elonmusk, DM us where to email the access codes :-D”

Musk tweeted several times about the cryptocurrency In one such tweet he wrote, “Dogecoin rulz.”

So, with April winding down, we thought we’d take a look at the Dogecoin chart year to date.

Bulls are looking to break above the exponential moving averages (EMAs) on Dogecoin and should they find success, the crypto’s price will continue on a bullish trend that increases its chances of a powerful pump in May.

A general uptrend began on April 1 before reaching a high of 84 Satoshis three days later. April 13 saw Dogecoin break out from a falling wedge and the coin has now found stability at around 54 Satoshis.

The meme-inspired altcoin faces soft resistance first at 58 Satoshis with a more indicative resistance level of 69 Satoshis. Good reason for optimism exists: the 200 EMA level is at 55 Satoshis, at the time of writing, so this should be fairly routine for bulls to break.

Dogecoin pumps every eight months:

Dogecoin has a pattern of spikes. | Source: TradingView

It is staggeringly routine for Dogecoin to undergo a price spike every eight months and almost without fail – one month in 2016 bucked this trend – so bullish signs will perhaps carry more weight now than ever.

A flurry of activity in early April may have been this pattern in play, although a spike to 84 Satoshis before a fall to similar price levels seen in 2019 so far does not closely match the previous pumps.

If bullish indicators remain strong then a bounce to 80 Satoshis is likely and perhaps even further beyond; there will be those holding out for a return to the 2018 high of over 100 Satoshis. They might get it. Dogecoin has a history of pumping rapidly within the space of a few days.

A ‘BUYING SPREE’ FOR DOGECOIN?

One Twitter user found transactions to the tune of millions that constituted more than 20% of all Dogecoin bought and sold that day, more curious for the fact that appearances suggest they represent the authentic buying and selling of the coin.

The existence of large scale transactions does not on its own mean that Dogecoin will enjoy a sudden price hike. It remains a possibility among a host of reasons for why individuals make such high-profile coin movements, though it could not be taken as an early indicator until after a pump.

DOES DOGECOIN HAVE A FUTURE?

Critics say Dogecoin is not serious crypto but a sort of extended joke, though it remains the 26th largest coin in the market with a 24h trading volume of $33,002,526 and a market cap of $335,233,515.

Dogecoin also recently secured a listing on Singapore-based exchange Huobi with the three trading pairs of DOGE/USDT, DOGE/BTC and DOGE/ETH. Within 24 hours, Huobi Global was the third largest Dogecoin market with around $19 million in trading volume.

Another pump could bring Dogecoin into the limelight again. While it still has no listing on Binance, the meme-in-a-coin has made impressive strides towards an air of legitimacy that convinces beyond its faithful community. If the market can continue to offer a balance of stability and reward to investors then its mid-term future might be all but secure.

Not long after Musk proclaimed that Dogecoin was his favorite cryptocurrency, popular Chinese exchange, Huobi, listed it for trading.

Musk has somewhat of a history tweeting about cryptocurrency. The tech billionaire seems to stay up on cryptocurrency news.

“Cryptocurrency is my safe word,” he once proclaimed.

On the Ark Invest podcast, Musk confirmed his confidence in cryptocurrency. “Paper money is going away and cryptocurrency is a far better way to transfer value than pieces of paper,” he said. While Dogecoin might be Musk’s favorite cryptocurrency publicly, he’s also had some favorable things to say about the original cryptocurrency.

He said on a podcast:

“I think the Bitcoin structure is quite brilliant. There seems like there is some merit to Ethereum as well, and obviously others. But I’m not sure if it’s a good use of Tesla resources to get involved in cryptos.”

Tesla, however, has no plans of incorporating blockchain.

“We’re really just trying to accelerate the advances of sustainable energy,” he said. “One downside of Bitcoin is in computationally; it’s quite energy intensive. There has to be some kind of constraint on the creation of crypto. It’s very energy intensive to create incremental bitcoin at this point.”

He adds: “It bypasses currency controls. Paper money is going away, and crypto is a far better way to transfer value than pieces of paper. That’s for sure.”

Source.ccn

Continue Reading

Cryptocurrency

BitMax.io [BTMX.com] provides technology and execution support for DUO network pre-sale!

Published

on

DUO Network, a growing platform that aims to build a trustless derivatives marketplace, has announced the token pre-sale for BitMax.io [BTMX.com] users from 8:00 a.m. EDT, Apr 27th, 2019 to 9:00 a.m. EDT, Apr 27th, 2019. While DUO Network, as the organizer, takes full legal responsibility, BitMax.io will provide technology and execution support for this pre-sale.

What Is DUO Network?

Previous issues in volatility have gone rather unaddressed in the digital derivative trading space. With the velocity of prices and global acceptance of cryptocurrency as a means of asset management, there is a dire need to mitigate risk in a way that matches the speed and growth of the cryptocurrency market as a whole.

While these problems make it difficult for platform users to manage their risk systematically and rapidly, a group from top-tier institutions such as Citi, Credit Suisse, and VISA, with solid experience in trading, quantitative analysis, and engineering have come together. With the aim to build a trustless derivatives marketplace, they designed a DUO Network.

DUO Network is a decentralized platform that enables issuance, trading, and settlement of tokenized digital derivatives. The platform aims to reduce risks and barriers in traditional derivative transactions, through collateralized smart contracts and distributed price feeds, thereby creating a transparent and autonomous derivative marketplace.

DUO Network allows for derivatives to be traded directly on the chain and has thus addressed the issue of illiquidity in the existing crypto derivatives market. Additionally, by utilizing the core aspect of blockchain technology, the platform allows for a merging of the traditional roles clearing houses and an exchange.

This allows for the facilitation of derivatives trading with a standardized set of rules, as well as reducing counter-party risk for traders.

BitMax.io is the industry leading next-generation digital asset trading platform that provides a broad range of financial products and services to both retail and institutional clients across the globe.

This innovative trading platform was founded by a group of Wall Street quant trading veterans and built upon the core values of blockchain, transparency, and reliability, to deliver high-quality client services and trading experience.

With the primary objective to list only top-tier quality projects as part of its client-centric strategy, BitMax.io has expanded its global client base to over 150,000 registered users and 53,000 active community members.

Besides,BitMax.io has always strived to go beyond the industry norm and advance its listing partners by leveraging the strong relationship they have built with their users and community through multiple channels.

Now they are providing technology and execution support to listing partners’ token pre-sale as a new effort to tap into their deep user bases for support of new listings.

BitMax.io plans to list DUO Network [DUO] under the trading pairs of DUO/USDT and DUO/BTC, with the pre-sale to its users from 8:00 a.m. EDT, Apr 27th, 2019 to 9:00 a.m. EDT, Apr 27th, 2019. Deposits and trading will start at 9:00 a.m. EDT on Apr 28th, 2019; while withdrawals activate at 9:00 a.m. EDT on Apr 29th, 2019.

DUO Presale Plan

Source: BitMart

Please note that the pre-sale will only be available to the users from the countries and regions where the local laws and regulations permit the participation. For more details of this pre-sale, please visit the Announcement of DUO Network [DUO] Presale page on BitMax.io official website.

The digital asset market, although no longer in its infancy, is still rapidly evolving. With constant change, issues also arise. As a result, an increasing number of projects are developed to address the gaps and inefficiencies of the industry.

By partnering with DUO Network, BitMax.io has demonstrated its comprehensive abilities to provide multi-dimensional support to another high-quality project that may enhance the marketplace of tokenized digital derivatives.

Source. ambcrypto

Continue Reading

Cryptocurrency

SEC on the hunt for ‘Cryptocurrency Analyst’ as demand for decentralised currency experts grows

Published

on

Cryptocurrency and blockchain related jobs are on the rise with regulatory heavyweights looking to hire experts in the field. The United States’ Securities and Exchange Commission [SEC] is also looking to further its understanding of the field after it released a job posting,signaling their intention to hire a cryptocurrency analyst.

Although the position itself has the designation of “Financial Analyst Cryptocurrencies – SEC,” the industry specified in the job listing stated “Securities Regulation.”

According to the job posting, the crypto-specialist will provide “expertise and coordinate TM activities regarding crypto and digital asset securities.” The candidate will have to work with several stakeholders in the regulatory realm including, domestic and international regulators, market participants and the public. The posting outlined the duties of the analyst,

“Duties include coordination with Division staff to establish a comprehensive plan to address crypto anddigital asset securities; engage with other Divisions and Offices on such matters.”

The candidate will also have to be well versed in legal and policy-related developments in the cryptocurrency realm, across all stages of trade. The candidate will serve as the division’s lead representative in the SEC’s FinTech Working Group and as liaison with the FSOC’s Digital Assets Working Group.

However, the SEC made it crystal clear that no payment of salaries will be disseminated in cryptocurrencies.

If the candidate is confirmed, they will have a major role in the Bitcoin [BTC] ETF decision to be tabled before the

higher-ups of the SEC on May 16, 2019. Presently, two applications have a strong chance of rolling out a publicly traded BTC product, VanECK/CBOE, and Bitwise and NYSE Arca.

Several other financial and technology companies are also veering towards hiring a cryptocurrency expert, given the evolution of the decentralized currency industry. Recently, Visa, the payments giant, posted a job for a “Technical Product Manager,” in its FinTech wing, with a member of the company’s partnerships team suggesting that the candidate should be interested in “the intersection of crypto and retail payments.

Jack Dorsey, CEO of Square, was also looking to hire ‘crypto engineers and designers,’ for Square Crypto, the company’s crypto-project. He added that they will be paid in Bitcoin [BTC], which Dorsey had previously called the native currency of the internet.

Facebook has also been bullish towards cryptocurrencies and its underlying blockchain technology. As their LinkedIn job postings revealed, the social media giant was in search of 22 blockchain experts. With the Facebook Coin project in gear, the Menlo Park company is also covertly approaching cryptocurrency exchanges for eventual listing support.

Source. ambcrypto

Continue Reading
Advertisement
Advertisement
Open

Close