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Crypto Exchange

Deutsche Börse Group, TP ICAP Make Crypto Bets With New Plans, Investments

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Two major players in the traditional finance world just announced their new crypto moves.

First, major UK-based interdealer broker TP ICAP has partnered with US-based mutual fund giant Fidelity Investments and Zodia Custody to launch a crypto trading platform. Meanwhile, stock exchange giant Deutsche Börse Group said it acquired a majority stake in Crypto Finance AG, as the German giant is building a European digital asset ecosystem.

TP ICAP, the London Stock Exchange-listed global firm of professional intermediaries, which operates in the world’s financial, energy, and commodities markets, said it has already started to onboard clients to its new platform and will launch to the market in the second half of the year.

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The new platform will allow institutional investors to trade bitcoin (BTC) first, while ethereum (ETH) will be added “later” as well.

Besides Fidelity Investments, it will be launched along with Zodia Custody, which is a digital asset custody unit itself launched back in December by banking corporation Standard Chartered‘s and provider of asset servicing Northern Trust.

Neither Standard Chartered nor Fidelity Investments have invested in the platform, TP ICAP told Reuters.

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TP ICAP launched its Digital Assets business in 2019, enabling clients to trade cryptoasset derivatives products.

“This new trading platform for the spot market significantly expands the firm’s footprint in this fast-growing area,” they said, adding that the platform will offer to its users post-trade infrastructure with a network of digital asset custodians, as well as separate execution and settlement, “something widely seen as key to greater involvement of larger risk-averse investors in the emerging crypto market.”

Amsterdam-based Flow Traders will provide liquidity to the platform, but TP ICAP said they expect to announce additional liquidity providers in the second half of the year.

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The platform is now waiting for approval by Britain’s financial regulator.

“Client demand to trade spot cryptoassets is significant and growing, with interest coming from our traditional customer base across the different asset classes we operate in. But to date many of our clients have been prevented from accessing cryptoasset markets due to current limitations in market infrastructure, with most execution venues requiring pre-funding and also acting as custodian,” Simon Forster, Co-Head of Digital Assets at TP ICAP, was quoted as saying in the announcement.

Increasing demand

Meanwhile, Deutsche Börse Group said it has acquired a two-thirds majority stake in Switzerland-based Crypto Finance AG, a provider of trading, storage, and investment in digital assets services to institutional and professional clients, for an investment in “a moderate three-digit CHF million range.”

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The remaining shares stay with existing investors, including CEO and founder Jan Brzezek, who will continue to lead and manage the business. The parties expect to close the transaction in the fourth quarter of 2021, following regulatory approvals.

As reported, in April 2020, Crypto Finance raised around USD 14m in a Series B round led by Swiss investor Rainer-Marc Frey and the Asian-based private equity fund Lingfeng Capital.

“As part of Deutsche Börse Group, Crypto Finance will be able to further scale the business and expand the range of digital asset services. Deutsche Börse also intends to make Crypto Finance’s offering easily accessible for participants via its established platforms,” the Group said in an emailed announcement.

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According to Thomas Book, Executive Board member for Trading & Clearing at Deutsche Börse, there is increasing demand from established financial institutions who are looking to become active in this new asset class and want a trusted partner.

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Binance

Crypto Newcomer Explodes After Abrupt Altcoin Listing on Binance

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A small-cap altcoin is shooting into the stratosphere after earning support from the global crypto exchange Binance.

The governance token Tranchess (CHESS) officially began trading today.

News of the coin’s listing triggered a 185% rise in the price of the asset – from $2.77 to $7.91. Its value has since settled to $5.09 at time of publishing.

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CHESS is listed in Binance’s Innovation Zone, a dedicated trading area where users can buy and sell newer tokens that are likely to have higher volatility and pose a higher risk to traders.

According to Binance Research,

“Tranchess is a yield-enhancing asset tracker with varied risk-return solutions on Binance Smart Chain (BSC), which consists of 3 tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS. 

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The platform offers various features including a DEX (Tranchess Swap), money markets (Primary Market), staking, and network governance.”

Tranchess recently raised $1.5 million from Binance Labs, Three Arrows Capital, and other crypto venture firms.

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Binance

Binance proposes a real-time token burning mechanism to boost BNB value

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  • Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
  • BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.

Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.

According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.

For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.

Details of Binance BEP-95 token burning mechanism

BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.

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However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.

Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.

Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose. 

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BNB price action

BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.

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Crypto Exchange

Google warns crypto investors of Youtube scams amidst high hacking

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  • Google warn crypto investors to be weary of Youtbe scams.
  • Google says hackers impersonate crypto influencers to run scams on YouTube.
  • YouTube, a hotbed for crypto scams.

Google’s Threat Analysis Group has warned crypto investors to beware of cryptocurrency scams on Youtube as phishing and impersonation on the video-sharing platform surges.

The Google group noted that a group of hackers is taking over Youtube, rebranding popular Youtube channels of well-known crypto or tech companies. “The channel name, profile picture, and content are all replaced with cryptocurrency branding to impersonate large tech or cryptocurrency exchange firms,” the group said, adding that hackers would live stream videos promising crypto giveaways in exchange for “initial contributions.”

According to the Google group, if these hackers don’t rebrand, they sell pages to the highest bidder depending on how many subscribers the channel has. They note that fake Youtube pages sell anywhere from $3 to $4,000.

The Google group notes that a group of hackers recruited in a Russian-speaking forum are actors behind the campaign.

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Crypto investors should be warned as YouTube remains a hotbed for crypto scams

The video-sharing platform so many times has been used as a tool to dupe unsuspecting crypto investors. In December, American crypto exchange Gemini exposed two fake YouTube channels that were pretending to be from the exchange.

“These scam accounts are not our company. We have reported these accounts to YouTube,” Gemini tweeted.

Funny enough, it was not the first time Gemini was being impersonated on Youtube.

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Crypto scams have been well perpetrated on the platform that the video giants ban crypto content on its platform. Authorities in the UK also warned young crypto investors with campaigns on Youtube and TikTok against being victims of crypto scams.

The cycle of crypto scams across all platforms is one that may never end. As much as crypto exists, crypto scams would remain a thing. The rise in crypto scams recently has been attributed to the surge in price and adoption of cryptos globally. It is safe to say that with crypto prices going up and more people, corporate organizations adopting cryptos, more scammers will be threatening the burgeoning space.

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