The consolidation has continued on crypto markets for another day. There have been slight declines but nothing significant as the SEC ruling on the VanEck ETF gets predictably delayed again by the apathetic US regulator. Total crypto market capitalization is still hovering around $245 billion.
Bitcoin bounced off an intraday high of $8,060 a few hours ago during Asian trading. The minor correction took BTC back below $7,900 and it has been slowly dropping ever since. Currently trading at $7,920 Bitcoin is down about a percent on the day.
Ethereum looks a little healthier even though it has dropped back to $250. A golden cross between the 50 and the 200 day EMAs is a long term bullish indicator and further gains could be on the cards for ETH which has remained flat on the day.
The top ten is mostly in the red at the moment but losses are marginal as the markets continue to consolidate. Stellar has taken the biggest hit with a 2.6 percent loss back to $0.133 and XRP is a close second dumping 2 percent back below $0.40. The rest are little changed from this time yesterday.
There is a little more movement in the top twenty but very few altcoins are gaining at the time of writing. NEO is making a rare 5 percent gain today as it struggles to remain at 20th place. Monero is also on the up adding 2.5 percent to top $90. The rest are dropping a couple of percent with Tezos taking the largest lump of 6.5 percent off its price.
FOMO: Matic to the Moon
Today’s epic pump is going on with the Ethereum based blockchain scaling Matic Network which has surged 80 percent to power into the top one hundred. This is a prime example of the power Binance has as it has pumped the project via the LaunchPad program and subsequent token listing. Unsurprisingly 99 percent of the volume is currently being traded on Binance alone.
Matic Network has officially joined Binance Info's transparency initiative. By sharing project-related information such as news and progress reports on Binance Info, Matic is contributing to keeping the community informed.
— Matic (@maticnetwork) May 20, 2019
Holo is also on a rip with a 40 percent pump as HOT flies up the charts to 34th place. There are no major dumps going on at the moment as markets remain relatively stable. As always there are altcoins at the bottom of the performance pile though at today it is Augur, Tezos, and Aurora.
Total crypto market capitalization is currently at $246 billion, marginally lower than the same time yesterday. Daily volume is still huge at $77 billion so momentum could well continue upwards if the big boys can break resistance. Aside from the weekend correction which was quickly recovered, crypto markets have remained sideways for the past seven days.
Binance Says Its Venus Stablecoin Would Be More Government-Friendly Than Facebook’s Libra
Binance mentioned that unlike Facebook’s Libra, its Venus stablecoin won’t be a trouble for regulators and will help to bridge the gap between traditional financial markets and the crypto industry.
As the stablecoin race catches up, cryptocurrency exchange Binance wants to position its Venus stablecoin more aggressively. Taking a dig at Facebook‘s Libra, Binance said that the Venus will be a government-friendly alternative to the Libra Coin.
Last month in August 2019, Binance unveiled its plans to launch stablecoins and other digital assets pegged to fiat currencies across the globe. This initiative is part of the company’s plan to form major partnerships and alliances with global corporations, governments, crypto companies, technology companies etc. With this, Binance wants to position itself well among projects involved in the larger blockchain ecosystem.
During the launch of Venus, Binance CEO Changoeng Zhao said that their entry in the stablecoin market will, in fact, help Libra. But now it looks like Binance plans to enter in direct competition with Libra and convince the regulators before Facebook can manage to do so.
A Strong Competitor to Libra
During the latest OECD Global Blockchain Policy Forum, Binance’s Chief Compliance Officer Samuel Lim opened up about the company’s plan for Venus. Speaking to CoinDesk, he said:
“You could say it’s a response to Libra, or you could say it’s an alternative to libra. I would say it is like a strong competitor to Libra. We know what we are doing. It’s not like Facebook saying they are just going to put together a blockchain team. We have been in this business from day one; CZ has been doing this for more than ten years.”
Binance is smartly making moves saying that they wish to address the regulatory concerns expressed by governments on Facebook’s Libra. Lim said that Binance executives are in talks with several governments and policymakers and ensuring them that unlike the Libra, the Venus stablecoin won’t be posing any threat to the sovereign authority of their national currencies.
With Venus, Binance is looking to specifically target smaller countries with unbanked economies. He says that Binance wants to bring such countries in the mainstream financial ecosystem by introducing them to the global crypto market. Lim said that Venus will offer these central banks options that they never had before.
Moreover, Binance is majorly targetting developing nations feeling threatened by the arrival of Libra. Lim that developing countries are definitely “worried” about Libra. He added:“That is basically the message we are sending today. You have the power. We are not taking any power away from you, which is different from Libra. Some might be saying ‘let’s try it out’, but there are others saying, ‘there’s no way in hell I will let Libra in my economy.’
Of course, the developed countries have the power to block it. But developing countries don’t have the financial power to say I’m going to block such a powerful corporation.”
Speaking about the company’s progress, Lim added that Binance is already setting up its foot in the African market by opening an exchange hub in Uganda. Lim refused to make any comment as to which country is currently exploring the option of introducing Venus stablecoin in its financial ecosystem.
“I can say this, in the next three to six months we are moving heavily towards partnerships with governments, central banks, and large corporates.”
While Binance has big plans in line, it is certainly not easy to clear the regulatory hurdles as we have seen in the case of Facebook’s Libra. But the growing competition in this stablecoin market will certainly push the regulators to think about the newly shaping payments industry.
Binance US Is Now Open For Registrations Excluding 13 States; Crypto BNB Added To Approved List
- Biannce.US currently supports 7 crypto assets, with deposits open for BNB
- More jurisdictions and digital assets will be added later on
- Trading fee is being kept zero until November 1, 2019
- Option to buy the listed coins with USD through ACH or wire transfer methods
Binance US is finally opened for registration, announced the exchange on Sept. 18.
Based in San Francisco, Binance US is operated by BAM trading services that is rolling out in most states except for Alabama, Alaska, Connecticut, Florida, Georgia, Hawaii, Idaho, Louisiana, New York, North Carolina, Texas, Vermont, and Washington.
Launched gradually across America, new users require a valid government ID, either a driver’s license or passport, and their social security number for registration.
Currently, there are 7 crypto assets viz. Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC), USDT, and its native cryptocurrency Binance Coin (BNB) available on Binance US.
BNB deposits are open today along with the registrations.
The inbound transfers of other six crypto assets will be accepted upon account verification. Deposits will be accepted prior to enabling full trading which will be when liquidity conditions are met.
As not all the coins or tokens are listed on Binance.US yet, they will be stored with other custodians and traded on other venues.
Over the coming weeks, it says, more digital assets will be added.
As for the fee, for personal accounts, the leading cryptocurrency exchange’s US division charges a flat fee of 0.10% per trade.
However, it is kept zero until November 1, 2019.
Moreover, US customers will be able to buy the listed coins with USD through ACH or wire transfer methods while other options will be explored later on, based on user demand.
BUSD — Binance and Paxos Stablecoin Latest to Get US Regulator Consent
Over the course of the past few weeks, the global cryptocurrency community bore witness to two major announcements related to stablecoins — with the first being the launch of Paxos’s gold-backed Ethereum token, PAX Gold (PAXG), and the other being the release of Binance’s cryptocoin backed by the United States dollar (BUSD).
Paxos, a global digital asset trust firm, announced the launch of its PAXG token via a press release a few days back. In the document, the firm claims that its product is the world’s first crypto asset to be fully redeemable in exchange for physical gold. Not only that, but the stablecoin has also received a regulatory nod of approval from the New York State Department of Financial Services (NYDFS), with the government body referring to PAXG as the first gold-backed digital currency to become eligible for trading in the state of New York.
Additionally, each PAXG token is backed by 1 fine troy ounce of London Good Delivery gold that has been stocked across discreet vaults spread out around London. If that wasn’t enough, token owners are provided with complete control of the gold that is associated with their holdings and have the option of moving their tokens like any other ERC-20-based crypto, thereby making it significantly easier for people to trade physical gold without having to bother about the logistics. Elaborating further on the utility of PAXG, Dorothy Chang, Paxos’ vice president of marketing and communications, told Cointelegraph:
“PAX Gold stands out because we uniquely have deep experience in both the traditional gold market as well as in asset tokenization. In the traditional gold market, we have a suite of products that have been used by the legacy gold trading markets. For example, our Confirmation Service has been used to confirm over 500k gold trades worth over $1T. Being this ingrained in the gold market has enabled us to draw on our relationships with leaders in the space — like Brink’s and INTL FCStone — to develop the operational infrastructure to make PAX Gold available and redeemable for physical gold.”
On the topic of whether the market has seen offerings similar to PAXG in the past, Cointelegraph reached out to Andy Hoffman, the founder of CryptoGoldCentral — a professional cryptocurrency consulting firm that provides altcoin enthusiasts and developers with strategies on how to market existing cryptocurrencies as well as those that have yet to be launched.
He pointed out that while an exact analogous product has not been seen in the market before, PAXG essentially resembles a gold exchange-traded fund (ETF) — such as the HSBC-backed GLD ETF — that carries with it a host of tangible financial risks.
Additionally, Hoffman also highlighted that, having previously spent over six years working as the marketing director of Miles Franklin (a major bullion dealer that manages gold, silver and platinum deposits with Brinks and the Dakota Depository), he couldn’t foresee investors flocking to PAXG:
“Can’t see why anyone who wanted to exposure to REAL gold would use Paxos, rather than Miles Franklin or even GLD ETF.”
So, what makes PAXG unique?
As mentioned previously, PAXG is an ERC-20 token that has been built on the Ethereum blockchain and is backed by physical gold, meaning it can be traded and moved anywhere around the globe with the touch of a button. Not only that, but the token also allows gold enthusiasts to own a fraction of LBMA-accredited London Good Delivery gold bars.
Paxos is regulated by the NYDFS and its associated PAXG token is one of just three crypto offerings to have received the regulator’s seal of approval. In this regard, other key facets related to PAXG that are worth highlighting include:
- The tokens are fully-backed by physical gold that is attested by a third-party auditor on a monthly basis.
- As things stand, PAX Gold is the only gold token available on the market today that can be exchanged in place of LBMA-accredited Good Delivery gold bullion bars. Smaller amounts can also be redeemed via a host of physical retailers located across the globe.
- Institutional players dealing with PAXG have the option of redeeming their tokens in favor of unallocated Loco London Gold.
- Using Paxos’ native exchange platform, investors can convert their PAXG holdings into fiat, physical or unallocated gold. Also, PAXG can be traded across a whole host of popular crypto exchanges that support ERC-20 tokens.
- From a fee standpoint, Paxos charges its users anywhere between 0.03%–1% (based on volume tiers) for redeeming their PAXG coins. Similarly, the company charges a flat 0.02% as on-chain Ethereum transaction fees and, as with any ERC-20 token, nominal Ethereum gas fees are also applicable on all transactions.
- PAXG holders have the option of looking up niche details (i.e., serial numbers, brand codes, gross weight, etc.) related to their stored gold reserves — a feature that is quite rare these days.
Binance and Paxos launch a dollar-backed stablecoin
Last week, Binance announced that it was entering into a partnership with Paxos in order to launch a USD-backed stablecoin called the BUSD. The digital currency follows in the footsteps of other stablecoins — such as TrueUSD (TUSD), USDCoin (USDC) and Gemini Dollar (GUSD) — and along with PAXG, it is one of the three Paxos created digital currencies to have received a regulatory green light from the NYDFS, with the other one being Paxos Standard (PAX).
On the subject, Chang told Cointelegraph that by gaining approval from the NYDFS for the BUSD stablecoin, Binance was helping to stabilize the global crypto market. She then went on to say:
“Paxos will be the issuer and custodian of all BUSD tokens. With BUSD, there will be monthly audits and every customer acquiring BUSD through Paxos or Binance will go through our KYC/AML compliance process. We believe that with Binance’s network reach and our trusted, regulated service, we will be able to make a huge impact on the crypto markets. This is an exciting step towards bringing more stability to crypto.”
From a technical standpoint, BUSD will be made available for purchase at a ratio of one-to-one ratio with the U.S. dollar. Additionally, trades against Bitcoin (BTC) can be facilitated via Paxos’s native exchange platform, while those against Binance Coin (BNB) and XRP can be initiated on Binance.com.
Lastly, the launch of these crypto offerings suggests that regulatory agencies around the globe might finally be warming up to the idea of digital currencies and the potential they have to offer. On the subject, Hoffman added:
“There are many new stablecoins now — and the fact that they are being regulatorily approved, generally speaking, speaks volumes towards the fact that governments are (begrudgingly) starting to accept the fact that crypto is here to stay — both in the U.S. and globally. The Bakkt futures exchange is one such example, as well as last week’s acceptance of the VanEck/SolidX ETF for 144a investors…and I absolutely expect a broad ETF approval for all investors in the near-term.”
He also believes that the digital age is finally upon us and that by this time next year, investors should not be surprised to see Bitcoin’s hash rate and price scale up to new all-time highs.
What’s the deal with stablecoins? What advantages do they offer?
Most crypto enthusiasts are probably well aware of the volatility that the digital asset market witnesses on a near-daily basis. In this regard, stablecoins can essentially be thought of as crypto offerings whose prices are measured in fiat and have their value pegged to real-world assets such as the U.S. dollar, the euro, yuan or even other commodities such as oil, gold, silver and so on.
Also, like many other digital tokens, stablecoins also make use of blockchain technology and are usually decentralized in nature, meaning that they cannot be controlled by a centralized government agency or institution.
Talking about the advantages of PAXG, Chang pointed out that by tokenizing gold, it will become easy for investors to acquire the precious yellow metal without having to physically store it. She further elaborated:
“By putting gold on the blockchain and tokenizing it, we’re making it easier to trade, divide and leverage gold against other investments. We’re making PAX Gold as easy to own and trade as Bitcoin. We are also democratizing investment in gold as there is no minimum investment in PAX Gold and it can be sent anywhere in the world, 24/7.”