Blockchain
Cryptocurrency Market News: Bitcoin Rises Again, New Stablecoins On The Block
![cryptocurrency-market-news:-bitcoin-rises-again,-new-stablecoins-on-the-block](https://theblockchainexaminer.com/wp-content/uploads/2024/04/50114-cryptocurrency-market-news-bitcoin-rises-again-new-stablecoins-on-the-block.png)
Bitcoin (BTC) shook off last week’s jitters and briefly traded above $72,000 on Monday—an indication that the rally has far from stalled ahead of its fourth halving later this month.
Stablecoins were in focus last week with VanEck and Ripple Labs getting involved in new offerings. Also, a jury in New York found Terraform Labs and its founder, Do Kwon liable for civil fraud charges.
Bitcoin Rising Again, Closing The Gap With $73,000 High
What a wild ride it has been for bitcoin investors. After soaring past an all-time high of over $73,000, the cryptocurrency fell to trade close to $60,000 in the past month.
Bitcoin is currently trading at levels it saw at the beginning of last week, but had to find its way back after falling sharply to trade below $65,000 before gaining ground and ending last week in green.
Although the spot bitcoin exchange-traded funds (ETFs) saw strong outflows of $85.7 million on the first day of the month—largely due to more than $300 million in outflows from Grayscale Bitcoin Trust (GBTC)—flows rose reversed to end the week at $484.5 million of net inflows, according to Farside Investors.
The recent rise in the bitcoin price comes as the next halving event is expected to occur in less than two weeks. Notably, several recent reports indicated any potential effect of the halving on the bitcoin price could be overshadowed by the supply and demand dynamics of the spot bitcoin ETFs.
Additionally, Tether (UST), which is the issuer of the world’s largest and most popular stablecoin, added 8,888 bitcoin (currently worth around $640 million) to their reserves during the first quarter of the year. The company’s bitcoin address is now the seventh largest on the network in terms of holdings with more than $5 billion worth of bitcoin held in it, according to The Block.
VanEck and Ripple Involved in New Stablecoin Offerings
Speaking of stablecoins, there may be some new offerings on the block soon.
Fintech company Agora raised $12 million ahead of launching its stablecoin offering Agora digital dollar (AUSD), which will have reserves backing managed by VanEck.
While VanEck already operates a bitcoin ETF—VanEck Bitcoin Trust (HODL)—this new offering expands its bet on cryptocurrencies. For Agora, the product leverages VanEck’s investment expertise as well as familial ties. Agora founder Nick van Eck is the son of VanEck CEO Jan van Eck.
Ripple Labs, the company behind the XRP token (XRPUSD), also announced its venture into the stablecoin market with a U.S. dollar-backed digital currency aimed at enhancing the synergy between cryptocurrencies and conventional financial systems. This initiative is designed to inject more liquidity and foster increased adoption of the XRP Ledger, especially when it comes to decentralized finance (DeFi) applications. Ripple’s stablecoin offering will be backed by assets such as U.S. dollar reserves and short-term Treasury bills, and it will also be made available on Ethereum at launch.
Do Kwon and Terraform Labs Found Liable for Fraud
A New York jury took roughly two hours to decide that Terraform Labs and its founder, Do Kwon, were liable for defrauding investors in a civil lawsuit brought by the U.S. Securities and Exchange Commission (SEC).
The SEC alleged the company and Kwon had provided misleading assurances about the reliability of their algorithmic stablecoin UST, which was central to the Terra ecosystem’s dramatic $40 billion collapse in May 2022.
The SEC’s litigation pointed out Terraform Labs and Kwon had painted an overly optimistic picture of UST’s stability mechanism and the Terra blockchain’s functionalities to investors, especially its price stability which was artificially propped up by an unnamed, U.S.-based trading firm on at least one occasion.
This is the second big outcome of cryptocurrency fraud-related litigation in the past few weeks. Former FTX CEO Sam Bankman-Fried, who was also one of the darlings of the previous crypto market bubble, was sentenced to 25 years in prison on fraud-related criminal charges on March 28.
What to Expect in the Markets This Week
Precedent suggests a run up in bitcoin prices after the halving, but that’s no guarantee of performance this time around. However, one thing’s for certain. Investors need to buckle up and brace for volatility in the short-term even if there could be gain opportunities over time.
Investors use implied volatility to gauge market sentiment around prices in the future. For bitcoin options contracts with different expiration dates, that measure spiked higher over the past weekend, reversing course from earlier in the prior week, according to Kaiko research.
Implied volatility for “expiries in the next two weeks has increased the most, from 59% to 71% in the span of just two days. This suggests that expectations for near-term volatility are rising,” analysts at Kaiko wrote in a note Monday, blaming the uncertainty on bitcoin ETF demand.
Crypto market analysts will be tracking spot bitcoin ETF inflows closely this week, as the outflows from GBTC are expected to slow due to selling related to Genesis’s bankruptcy proceedings coming to an end, according to Bloomberg analyst James Seyffart.
March was by far the strongest month on record so far in terms of spot bitcoin ETF inflows, and the first week of April did not indicate the inflows are going to stop anytime soon, according to another Bloomberg ETF analyst Eric Balchunas.
Another potential effect on the market this week will be the more than $2 billion in bitcoin related to a hack of long-defunct darknet marketplace Silk Road that was sent to Coinbase (COIN) by the U.S. government.
It’s unclear what’s happening with these funds, but it’s possible they could provide downward pressure on prices if the coins are sold.
Price action is also likely to liven up around the upcoming halving; however, it’s unclear if it could end up being a “sell the news” situation in the immediate aftermath of the event.
Source: investopedia.com
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Blockchain
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution
Blockchain
Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
![ethereum-etfs-aren’t-blockchain-but-is-a-revolutionary-tech:-top-6-amazing-reasons-to-invest-in-them](https://theblockchainexaminer.com/wp-content/uploads/2024/07/51834-ethereum-etfs-arent-blockchain-but-is-a-revolutionary-tech-top-6-amazing-reasons-to-invest-in-them.png)
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.
Blockchain
Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance
![nexo-reaffirms-commitment-to-data-protection-with-soc-3-and-soc-2-compliance](https://theblockchainexaminer.com/wp-content/uploads/2024/07/51836-nexo-reaffirms-commitment-to-data-protection-with-soc-3-and-soc-2-compliance.png)
Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.
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