Blockchain Bites: Coinbase’s Card, Avanti’s Approval, FTX’s Fractional Stocks
FTX now offers a symbolized way to trade fractions of stocks. Coinbase predicts its consumer-facing debit card will hit shelves next year. Caitlin Long's Avanti bank is set to become the second "crypto bank".
Fraction of the offer
You can now trade in high demand stocks such as Tesla, Apple and Amazon represented by tokens on the FTX futures exchange. According to CoinDesk's Sebastian Sinclair, there are 12 stock and cryptocurrency pairs on offer that allow users to swap token fractions of stocks (seemingly up to half a share at a time) for bitcoin and stablecoins. The product is carried out in cooperation with the capital market solution provider Digital Assets AG and the investment company CM Equity. FTX calls it a "first of its kind" product.
Coinbase's debit card will be available to US consumers sometime next year. The card has been active in the UK and the European Union for almost a year and will be available in all US states except Hawaii. All cryptocurrencies that Coinbase supports in the US (and that users have on their accounts) can be issued via the debit card - with rewards in Lumen or Bitcoin. The card is issued by South Dakota-based MetaBank and operated by the payment platform Marqeta. However, according to CoinDesk bank whisperer Nathan DiCamillo, users will manage them directly from their Coinbase accounts.
Related Topics: First Step: Bitcoin Falls As COVID-19 Rises, ECB Lagarde Rises, US GDP Reaches 33%
Avast you? No, Avanti!
Speaking of banks: Blockchain pioneer Caitlin Long is now the managing director of her own special purpose depository (SPDI) in Wyoming. Avanti Financial's banking charter was unanimously approved by the Wyoming State Banking Board on Wednesday and became the state's second newly chartered bank in 2020. Kraken Financial received approval last month and beat Long - who helped draft the state rules - in the draw. Avanti is currently in the process of raising new capital, adding to a $ 5 million angel round before it can be granted an operating license, DiCamillo said.
The Graph, a data indexing protocol used by many popular DeFi (decentralized finance) applications, raised $ 12 million for the public sale of its native BRT token, reports CoinDesk's Zack Seward. With around 4,500 buyers, the sale distributed around 400 million BRT tokens using in-house technology. "We are excited about the sale of bringing GRT tokens into the hands of indexers, curators and delegators who will participate in the decentralized network," said Yaniv Tal, co-founder of The Graph. The company previously raised $ 5 million in a private token sale that Coinbase Ventures was involved in and a $ 2.5 million startup round led by Multicoin Capital.
Voyager Digital, a publicly traded digital asset broker, posted revenue up 1,159% for the fiscal year ended June 30, 2020 (from $ 87,318 to $ 1.1 million). CoinDesk's Omkar Godbole also reports that client assets increased 1,959% to $ 35 million. Stephen Ehrlich, CEO of Voyager, said the increased adoption of digital assets has helped the company expand its growth momentum. Next? Revenue is expected to have risen to $ 2 million from July to September as the company seeks a virtual currency ("BitLicense") license this year.
The head of Canada's central bank said his national "Digital Dollar" initiative is beyond the experimental phase. (CoinDesk)
Investors have been rocked by the latest COVID-19 predictions, with Bitcoin price rallying possibly pausing. (First mover / CoinDesk)
New York's top financial regulator wants companies, including crypto miners, to investigate the risks of climate change more closely. "DFS is developing a strategy to integrate climate-relevant risks into its supervisory mandate," says a new press release. (CoinDesk)
A micro-stock exchange based in Algorand has launched a token that tracks top tech stocks like Microsoft, Apple, Tesla, Twitter, Amazon, Netflix and Google. (Modern Consensus)
One group used a flash credit attack to ensure the proposed governance vote on the Maker Protocol was passed. The manufacturer is now urging MKR governance token holders not to put them on trading platforms in order to reduce the possibility of a similar attack. (Decrypt)
Traders are betting that Bitcoin will not exceed the high water mark of USD 20,000 for 2017 by the end of the year. According to data source Skew, the probability that Bitcoin will be traded is 6% above its historic all-time high of 2017. “The price of Bitcoin has increased from USD 3,867 to USD 13,800 in the last 7½ months. While prices are up over 250%, the chances of Bitcoin reaching record highs by the end of the year have seen a slight increase from 4% to 6%. The probability peaked at 8% in July, ”reports Omkar Godbole from CoinDesk.
On the game
Related: Graphic Raises $ 12M in BRT Token Sale; Teases the Mainnet start in 30-60 days
Token rise (Happy Halloween)
After the first coin supply bubble burst, which began in 2017 and waned in 2018, many viewed the token offers with skepticism. While this is a more democratic way to raise funds, this novel blockchain-based fundraising mechanism ran into a number of problems: many of them may have been unregistered securities sales for projects that weren't built yet, and it was unlikely that they are gaining in importance.
In 2018, the Satis Group published a report detailing that approximately 78% of the ICOs identified were scams or projects that “had / had no intention of performing project development tasks with the funds and / or by the community classified as (message boards), website or other online information) to be a scam. "
A similar survey from Boston College largely supported these claims.
Because of this, it is surprising to see token sales increase in 2020, albeit with some notable changes. Last summer, Leigh Cuen reported that "token sales are back".
"Unlike 2017, the norm today is for token sales to be done through an exchange, whether it's CoinList, Gate.io, or Binance," she wrote. In addition, projects are now based on a controlled distribution. Unlike the original ETH sale in 2015 and subsequent imitators in 2017, many token founders now prefer ongoing sales with controlled distribution - i.e. geofencing regions (like the US) where investing can prove problematic.
In the middle of last year, Ava Labs' Avalanche blockchain raised around $ 42 million for a public token sale. Polkadot, one of the largest blockchains, raised $ 43 million days later in a private sale. And NEAR, another Layer 1, brought in $ 30 million. Then there is Dapper Labs, who completed a token sale worth $ 18 million in early October
In particular, all of these projects had already raised significant risk funding and often had a private sale before turning around to publicly list their tokens on a closed platform that manages the information and compliance of your customer information.
The Graph is the latest project to join the trend of high quality public token sales that are set to close this year. Following a similar set of strict rules and capital caps, The Graph differs from using in-house technologies - rather than the suite of hosting platforms.
The judgments of what, if anything, will go against the trend. For now, however, it's safe to say that token sales are back.
Who won #CryptoTwitter?
Blockchain Bites: Coinbase Card, Avanti Approval, FTX Fractional Stocks
Blockchain Bites: Coinbase Card, Avanti Approval, FTX Fractional Stocks
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