Daily Archives: November 28, 2023

Nov 28 (Reuters) - Despite growing excitement that spot bitcoin exchange-traded funds (ETFs) will soon win regulatory approval, some cryptocurrency ETF pioneers plan to sit out what is expected to be a fierce industry battle for market share.

Demand for a bitcoin ETF, which would allow retail and institutional investors to easily bet on the price of the world's biggest cryptocurrency, is expected to draw in as much as $3 billion from investors in the first few days of trading and pull in billions more thereafter.

Yet some established names in the blockchain and cryptocurrency space - including ProShares, Amplify Investments and Roundhill - are so far steering clear of launching a bitcoin ETF. They worry that the field is too crowded, the regulatory and marketing costs too high, and that demand will not be strong enough to compensate for that.

Though they remain a small minority in a race where both big and small players are diving in, their skepticism suggests the hype over a spot bitcoin ETF may be misplaced and that the products could prove unprofitable for some issuers rushing into the space.

"This could be the most successful ETF launch in history, but it's still going to be intensely competitive, requiring a lot of investment up front," said Dave Mazza, chief strategy officer at Roundhill Investments, which hopes to launch cryptocurrency ETFs but has no plans for a spot bitcoin ETF.

"You have to weigh the odds that you'll end up as one of the winners or an also-ran."

The SEC has long rejected spot bitcoin ETF applications on the grounds they do meet its investor protection requirements.

Industry hopes that position would shift surged in June when BlackRock (BLK.N), which has an almost unbroken record of SEC ETF approvals, filed for a spot bitcoin ETF. Then in August, a court ruled that the SEC wrongly rejected Grayscale Investments' application to convert its Bitcoin Trust (GBTC.PK) into a spot bitcoin ETF and must review Grayscale's filing.

SEC chair Gary Gensler said last month the agency's commissioners will consider as many as 10 bitcoin ETF filings, but could not provide guidance on timing.

Even so, ProShares CEO Michael Sapir said he is not convinced the SEC will approve a filing soon. The company's ProShares Bitcoin Strategy ETF , based on bitcoin futures, was one of the most heavily-traded new ETFs when it first launched in 2021, pulling in $1 billion in its first few days.

ProShares also has a suite of other cryptocurrency ETFs tied to futures, offering options to clients without the need for a spot ETF, said Sapir.

When it does approve a bitcoin ETF, executives expect the SEC to approve several at once, so no one has a first-mover advantage.

That would drive up marketing expenses, one of the biggest costs of an ETF debut. Combined with legal, SEC filing, and listing costs, the bill for launching even a simple ETF rings in at about $100,000, according to lawyers. That can climb to millions of dollars if the product is complex and takes a long time to secure SEC approval.

"Having the resources and expertise to file for something that doesn't exist yet in the U.S.," is costly, said Roxanna Islam, associate director of research at VettaFi, a data firm.

The only prospective issuer to disclose proposed investor fees so far is Ark Investment, which last week announced its spot bitcoin ETF would charge a fee of 0.8%.

"This seems to be strategically priced to attract assets" rather than to cover upfront costs, said Aisha Hunt, a fund lawyer at Kelley Hunt LLC.

To be sure, issuers hoping to launch spot bitcoin ETFs have a more bullish outlook than those sticking to the sidelines. Some of the largest ETF providers, like BlackRock and Invesco, can cross-subsidize costs, and have the marketing scale to reach millions of potential customers.

But it's unclear to some ETF providers outside of the top two dozen or so, like Amplify, that they would be able to grab sufficient market share to make the economics work.

"It will be a game-changer in terms of demand and crypto's evolution into an asset class, but that doesn't mean we'd be able to benefit directly," said Christian Magoon, founder and CEO of Amplify ETFs, whose Amplify Transformational Data Sharing ETF invests in bitcoin miners and other crypto firms.

Both Amplify and Roundhill said they will focus instead on other cryptocurrency ETF opportunities.

Roundhill last month filed an SEC application to issue an ETF that seeks to generate income and bitcoin exposure through bitcoin-linked options. Mazza said he is optimistic the product could debut as early as January.

Magoon hopes the buzz surrounding a spot bitcoin ETF will draw more assets to Amplify's BLOK ETF. That $472 million fund has holdings in crypto companies like Coinbase (COIN.O), as well as CME Group (CME.O), the exchange where crypto futures trade.

Even Tom Staudt, chief operating officer of Ark Investments, whose spot bitcoin ETF filing is due for an SEC decision in January, said the excitement has caused some people to lose sight of the bigger picture.

"It will solve some real problems for investors. But it won't solve all problems," Staudt said, noting that is why Ark recently launched five ETFs offering various cryptocurrency investing approaches.

"The future is about more than just spot bitcoin," he added.

Reporting by Suzanne McGee; editing by Michelle Price and Deepa Babington

Our Standards: The Thomson Reuters Trust Principles.

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In spot bitcoin ETF race, some pioneers stick to the sidelines - Reuters

Interactive Brokers has become the first SFC-licensed securities broker to receive approval to allow retail clients to trade cryptocurrencies in Hong Kong.

Eligible clients of Interactive Brokers Hong Kong trading cryptocurrencies will now be able to transact and manage their portfolio through a single platform with a unified view.

The development will also allow clients to benefit from centralised cash management with the ability to trade cryptocurrencies such as Bitcoin and Ethereum alongside stocks, options, futures, currencies, bonds, mutual funds, ETFs, event contracts, cryptocurrency futures and futures options all from a single account and interface.

As demand for cryptocurrency exposure as a means of diversification continues to rise, we are pleased to offer investors in Hong Kong a straightforward and cost-effective way to allocate a portion of their portfolio to digital assets, said David Friedland, head of APAC at Interactive Brokers.

Our single unified platform lets clients worldwide easily invest across a broad range of global products, and the retail investor community in Hong Kong will benefit from the ability to access digital currency markets without opening and maintaining different accounts at multiple brokers and exchanges.

Interactive Brokers launched cryptocurrency trading in Hong Kong with the first SFC-licensed digital asset trading platform in Hong Kong, OSL Digital Securities.

Cryptocurrency trading for eligible professional investor clients of Interactive Brokers Hong Kong was introduced on 14 February.

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Interactive Brokers gets regulatory green light for new ... - The TRADE News

BOSTON The United States Attorneys Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of a pig-butchering fraud scheme targeting Massachusetts residents and involved in money laundering. Specifically, the government seeks to forfeit 204,315.87 Tether (USDT) and 18.9649 bitcoin (BTC) seized from two accounts located at Binance.com, a cryptocurrency exchange and custodian. Collectively, this cryptocurrency has a current estimated value of approximately $900,000.

In September 2022, an investigation began into a pig-butchering scheme targeting a Massachusetts resident. In a pig-butchering scheme, scammers obtain funds from victims using manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme. Often the victim is enticed to make additional payments before realizing they are a victim of fraud.

As alleged in court documents, after targeting a Massachusetts victim and fostering an online relationship, scammers claiming to have access to profitable investment opportunities, induced the victim to invest personal funds into a fake cryptocurrency investment platform. During the investigation additional victims of the pig-butchering scheme were identified. Law enforcement traced cryptocurrency involved in the fraud and money laundering schemes to two Binance accounts, where it was seized.

It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. It is also a violation of federal law to conduct, or attempt to conduct, a financial transaction involving property which is known to represent the proceeds of some form of unlawful activity, knowing that such transaction is designed to conceal or disguise the nature, location, source, ownership, or control of those proceeds of unlawful activity. The complaint alleges that the cryptocurrency is traceable to proceeds of wire fraud and was involved in money laundering. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.

This is one of several civil forfeiture actions the U.S. Attorneys Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.

Members of the public who believe they are victims of a cybercrime including cryptocurrency scams, romance scams, investment scams and pig-butchering fraud scams should contact USAMA.CyberTip@usdoj.gov.

Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Raquelle L. Kaye of the Asset Recovery Unit.

The details contained in the civil forfeiture complaint are allegations. The United States Attorneys Office has not filed a corresponding criminal action on the matter.

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United States Files Forfeiture Action to Recover Cryptocurrency ... - Department of Justice

Choking off Hamass money sources is just as crucial to defeating the terror group as waging war on the battlefield in Gaza, says cryptocurrency expert Bezalel Eithan Raviv, who has declared war on the organizations secret digital avenues of funding.

Raviv is the founder and CEO of Lionsgate Network, a relatively new, Tel Aviv-based company that helps clients retrieve their swindled cryptocurrencies. And so far, Lionsgate Network has used its sleuthing skills to track down $90 million worth of cryptocurrency owned by Hamas.

Lionsgate Network was drafted by the Defense Ministry to track down the digital funds covertly raised by Hamas following the October 7 massacre in southern Israel carried out by the terror group.

We are a young startup, 14 months old, Raviv tells NoCamels. People from all over the world who have lost access to their crypto assets contact us to figure out where their money is, who it is with and how they can get it back.

He was contacted through a friend whose work at the ministry involved the aftermath of the October 7 attack, in which 1,200 people were murdered, thousands more wounded and hundreds abducted to Gaza.

She informed Raviv that the authorities had identified a number of crypto wallets believed to belong to Hamas and that contained funds for the terror group.

A crypto wallet is an app that works as a virtual wallet for cryptocurrency. And just as a real wallet holds your cash and credit cards, the virtual version contains the passkeys needed to gain online access to your cryptocurrency and the transactions you carry out with it.

According to Raviv, the methods that his company uses to track down stolen currencies are just as useful in hunting illicit Hamas funds.

There are 13 different scenarios that we take care of, he says. The thirteenth was added in the past few weeks and deals solely with Hamas.

We use the same process that we do all the time. We take our wallet and look into first of all what kind of money is accepted, when it was transferred, who is the identity sending the funds, he explains.

This is a tricky, complex thing, he says, as a wallet address is essentially random numbers and letters.

Raviv tells NoCamels that Hamas is indeed raising money via cryptocurrency, and is using fake charities abroad to do so.

We were able to cross reference that campaigns to aid Gaza and its poor people [were] a terror operation to raise funds through the naivety of people in Europe and the United States, he says.

Inside Gaza, he explains, Hamas officials can go to a bureau, access the wallets and exchange the crypto funds for cash, which they then use to buy goods and pay the groups members.

From Composing To Crypto

It was Ravivs previous career as a musician including his experience as a pop sensation in Tunisia a decade ago that led to him becoming a crypto expert.

As a singer-songwriter, he realized that he would have to take steps to ensure that his music was owned by him alone and decided that blockchain technology would be the best way to go.

A blockchain is a digital ledger that records transactions, including cryptocurrency. It is all public and decentralized across multiple computers so that the records of those transactions cannot be altered retroactively by just one source, making any nefarious activity extremely difficult.

This process led Raviv to understand that there were people who had been duped into handing over their crypto assets. He was determined to help them, and so Lionsgate Network was created.

It is quite an interesting process, to be honest, he says.

In cryptanalysis and blockchain analysis you see things that are not transparent to the naked eye.

Lionsgate Network uses a range of methods to identify the owners of these wallets, including scouring the web for any digital link to suspicious wallets, such as social media mentions or even Linkedin accounts to uncover the identity of the owners.

But the company really relies on what Raviv describes as its secret sauce a proprietary method it has devised to help its clients.

Were using everything that we can and a very specific tactic to figure out the person behind the numbers and the figures, he says.

When we do that and it is a successful operation, then you can either claim the funds back, activate sanctions or seize the funds.

According to Raviv, this means that once the owner of a wallet is solidly proven to be connected to Hamas, the Defense Ministry can ask a judge to authorize the confiscation of the funds.

Raviv is now lobbying for those confiscated funds to go to the Israeli communities where Hamas terrorists went on the rampage on October 7 killing and wounding civilians, blowing up and burning down houses and even stealing their property.

He believes that the terror group has reserves of cryptocurrency worth billions of dollars, spread across multiple wallets and those are in his crosshairs.

There are big wallets that are funding terror in the Middle East, and were definitely putting an eye on those wallets, he says.

The wallets are not making any movements, but we have tactics to get them to basically expose themselves. Were working on this as we speak.

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Cryptocurrency Sleuth Is Waging War On Secret Hamas Funding - NoCamels - Israeli Innovation News

In a recent analysis, ChatGPT highlights a promising future for VC Spectra (SPCT) against its competitors Bitcoin (BTC) and Ethereum (ETH). With soaring to new heights in its presale, VC Spectra continues to attract investors. Additionally, the positive developments for Bitcoin and Ethereum further contribute to the overall optimistic outlook for the crypto market.

What insights does ChatGPT offer on these top crypto coins? Lets explore the details!

>>BUY SPCT TOKENS NOW<<

ChatGPTs analysis points to a promising future for VC Spectra (SPCT) when compared to its competitors, Bitcoin (BTC) and Ethereum (ETH). This decentralized hedge fund has made significant strides during its public presale, positioning itself as one of the best DeFi projects in the market.

VC Spectra (SPCT) has garnered recognition as a standout option for long-term crypto investors, and its growth potential is evident. The platform offers a range of features that prioritize transparency and user control, making it an attractive choice for investors seeking stability and substantial returns.

The platforms governance token, the SPCT token, plays a crucial role in facilitating various functions within the VC Spectra ecosystem. Compatible with most Ethereum wallets, the BRC-20 token allows holders to actively participate in voting, staking, and receiving rewards such as quarterly dividends and access to new ICOs.

Notably, VC Spectras (SPCT) presale journey has been remarkable, adding to its allure for investors. Starting at $0.008 in Stage 1, the SPCT token has experienced a staggering 862.5% increase, reaching an impressive $0.077 by Stage 5. As a result, ChatGPTs forecasts suggest that VC Spectras upward trajectory is expected to persist, with the potential to surpass its projected value of $0.080 by the conclusion of its presale.

>>BUY SPCT TOKENS NOW<<

Recent data from CryptoFees indicates a significant surge in Bitcoins daily transaction fees, averaging $10.65 million between November 16, 2023, and November 20, 2023, outpacing Ethereums fees of $6.9 million during the same period.

Upon the release of this news, an optimistic BTC price prediction emerged. Within 24 hours, Bitcoins price increased from $37,879.98 to $37,934.63.

Bitcoins positive upward trend continued in the subsequent days. The price of Bitcoin further escalated by 1.27%, reaching $38,415.34 before experiencing a slight retracement to $37,892.43 on November 26.

Despite this minor pullback, ChatGPT maintains an optimistic outlook regarding the Bitcoin future. According to ChatGPTs BTC price prediction, the price of Bitcoin is anticipated to reach $109,364 next year.

On November 20, 2023, Santander Private Banking International, the global division of Banco Santander, a Spanish financial institution, introduced an exciting new feature. It allows customers with Swiss accounts to invest and trade in two popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).

This announcement generated significant enthusiasm within the crypto community, leading to a positive ETH price prediction. As a result, the price of Ethereum (ETH) experienced a 2.71% increase from $2,011.85 to $2,066.41 within 24 hours.

The upward trend for Ethereum persisted in the subsequent days. The price of Ethereum (ETH) climbed by an additional 3.19%, reaching a peak of $2,132.48 before retracing to $2,091.34 on November 25.

Given the growing adoption of Ethereum and its increasing popularity, ChatGPT anticipates a further rise in its value. In fact, the ChatGPTs ETH price prediction suggests an Ethereum max price of $6,380.55 in 2024.

Buy Presale: https://invest.vcspectra.io/login

Website: https://vcspectra.io

Telegram: https://t.me/VCSpectra

Twitter: https://twitter.com/spectravcfund

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Cryptocurrency Outlook: ChatGPT Foresees a Promising Future for ... - Analytics Insight

In the dynamic world of cryptocurrencies, Solana has emerged as a prominent player, gaining widespread attention and rapidly increasing in popularity. Known for its high-performance blockchain network and scalability, Solana has positioned itself as a strong contender in the competitive crypto landscape.

One of the key factors drivingSolana Pricepopularity is its high-performance blockchain. Unlike traditional blockchain networks that can face scalability issues and slower transaction times, Solanas innovative design allows it to process a significantly higher number of transactions per second (TPS). With a current TPS rate that surpasses many of its counterparts, Solana provides users with fast and cost-effective transactions, making it an attractive choice for developers and investors alike.

The burgeoning DeFi ecosystem on Solana has not only attracted developers but has also garnered significant investment from institutional players seeking exposure to the decentralized finance space. The seamless interoperability of Solana with various DeFi protocols has facilitated the integration of innovative financial instruments and services, fostering a diverse and dynamic ecosystem. Users are drawn to the efficiency and speed at which transactions occur within the Solana DeFi space, amplifying its appeal as a robust alternative to traditional financial systems.

Furthermore, Solanas commitment to fostering a developer-friendly environment has resulted in a plethora of DeFi projects, each contributing to the networks expanding repertoire of decentralized solutions. This influx of decentralized applications has not only bolstered the utility of Solana but has also positioned it as a hub for experimentation and innovation within the broader DeFi landscape.

Solanas commitment to community involvement surpasses its development ecosystem. The platform actively promotes engagement through governance mechanisms, empowering token holders to influence crucial decisions. This democratic governance model not only cultivates inclusivity but also resonates with the decentralized principles inherent in blockchain technology.

The platforms educational initiatives and outreach programs also deserve mention. Solana actively invests in educating developers and users about its technology, fostering a deeper understanding of its capabilities and advantages. By providing accessible resources and support, Solana ensures that its community remains informed and empowered, contributing to the sustainable growth of its ecosystem.

As the cryptocurrency market continues to evolve, Solanas rising popularity is evident. With its high-performance blockchain, low transaction costs, vibrant DeFi ecosystem and support for the NFT market, Solana has positioned itself as a competitive force in the digital asset space. As more developers and users recognize the advantages offered by Solana, its influence and prominence in the cryptocurrency market are likely to continue growing in the coming years.

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Exploring the Rising Popularity of Solana in the Cryptocurrency Market - Analytics Insight

In a conversation with Fortune, Binance CEO Richard Teng discussed the cryptocurrency exchanges intentions to transform into a more conventional financial institution. This strategic shift aims to correct previous errors and adjust to the increasingly rigorous regulatory environment for digital currency exchanges.

With a background in financial regulation, Teng is confident that his expertise, combined with Binances robust technological infrastructure, will drive the company towards its objective of being a top global exchange. As part of this transformation, Binance plans to work closely with financial regulators and governments to ensure compliance with applicable rules and guidelines. This will foster a smoother and more secure experience for its users and help solidify the exchanges reputation within the global financial community.

As part of its efforts to adhere to regulatory requirements, Binance has been proactively cooperating with regulators and governments across the globe. This allows the company to understand the intricacies of each jurisdiction better and create customized approaches for aligning its operations with local regulations. By doing so, Binance ensures compliance and fosters a sense of trust and legitimacy among its users, ultimately contributing to the companys overall success. Through effective communication and collaboration with authorities, the worlds leading cryptocurrency exchange aims to make crypto trading more secure, transparent, and accessible for everyone, regardless of geographic location.

In addition to focusing on regulatory compliance, Binance is also working towards expanding and diversifying its range of products and services. The company plans to move beyond digital currency trading and incorporate more traditional financial services such as prime brokerage and asset management. This expansion strategy aims to provide a comprehensive financial ecosystem for its users, catering to varying investment needs and preferences.

By offering a diverse portfolio of services, Binance aspires to establish itself as a frontrunner in the evolving digital finance landscape, securing a competitive advantage over other players in the industry. Binance seeks to solidify its position as a go-to platform for novice and experienced investors.

Featured Image Credit: Masood Aslami; Pexels

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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Binance's transition to a traditional finance institution - ReadWrite

As the use of crypto for payments continues to grow, crypto payment processors and gateways are becoming pivotal to facilitating transactions.

Crypto payment processing involves the handling of transactions conducted using cryptocurrencies.

A cryptocurrency payment refers to a transaction conducted using a cryptocurrency as a medium of exchange, replacing traditional fiat money.

The decision to accept crypto payments should be based on various factors:

Crypto payments enable businesses to reach users globally, overcoming the limitations of traditional payment methods.

Cryptocurrency transactions are less susceptible to denials compared to traditional processors, making them a reliable option. Lower transaction fees make crypto payments an attractive choice for businesses aiming to reduce costs. Crypto transactions offer quicker withdrawal times compared to traditional methods, enhancing overall efficiency.

A crypto payment gateway, also known as a crypto payment processor, is a platform or service that facilitates the processing of payments in digital currencies, enabling merchants to accept cryptocurrency payments.

This intermediary service performs several crucial functions to ensure seamless transactions between buyers and sellers.

User Registration and Data Handling

The gateway registers the data of the crypto holder or payer.

Currency Conversion

If needed, the platform converts the payment amount at the specified exchange rate.

Verification Process

It executes verification processes, such as 3DS (Three-Domain Secure), for enhanced security.

Accepts Cryptocurrency Payments

The gateway facilitates the acceptance of cryptocurrency payments from buyers.

Transaction Data Recording

It also sends transaction data to the blockchain, registering confirmations from nodes.

Crypto to Fiat Conversion

The platform converts received cryptocurrencies into fiat money at the merchant's request.

Payment Transfer

It transfers payments to the merchant, completing the transaction.

Confirmation

Lastly, it provides confirmation of payment processing to both the payer and the recipient.

To make a crypto payment, the payer requires only the recipient's blockchain wallet address.

The payer copies and pastes this address into their crypto wallet, specifies the payment amount, and confirms the transaction.

Alternatively, using a QR code simplifies the process as the payer can scan it and proceed with the payment.

Crypto-Fiat

Merchants receive fiat money into their accounts through the conversion process, involving regulatory, banking, and exchange risks. This model is more profitable but more complex to manage.

Crypto-Crypto

Merchants receive payments in cryptocurrency, bypassing the banking infrastructure. While less profitable due to lower transaction fees, it involves fewer risks and offers an alternative payment option.

Accepting Bitcoin Payments

Creating an independent crypto processing system can be resource-intensive. Instead, merchants can opt for ready-made solutions provided by payment systems.

Wellcoinex is an example of a crypto payment platform that allows businesses to accept payments and make payouts through various methods and different currencies.

The increasing demand for fast electronic payments worldwide has contributed to the growing popularity of crypto payment processing.

Businesses considering the adoption of crypto payments should weigh the advantages and disadvantages. While there are challenges, the benefits of crypto payments make them a compelling option for forward-thinking businesses.

Integrating a reliable crypto payment platform provides businesses with a quick and efficient way to accept cryptocurrency payments. By leveraging established solutions, merchants can focus on core business activities while offering customers diverse payment options.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

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The Pros and Cons of Cryptocurrency Payments Processing - Bitrates

The IOTA Foundation is looking to add prominent individuals to its Board of Directors in an effort to regain its position among the top ten most important cryptocurrencies. Despite the optimistic statement from Chairman Dominik Schiener, IOTA currently ranks around 100 in market capitalization, according to CoinGecko.

Chairman Dominik Schiener aims to elevate IOTAs position in the cryptocurrency market by adding influential figures to the Board of Directors. However, the current market data shows a decline in IOTAs significance.

Schiener plans to bring someone onto the board who will drive adoption of IOTA in the real world. However, the identity of this person remains undisclosed until the appointment is official. Presently, Schiener is joined on the foundations board by scientist Navin Ramachandran, and speculation suggests that Ralf Rottmann, a former member of IOTA, could potentially return.

Schiener highlights IOTAs advantage over other altcoins in terms of its partnerships and collaborations with governments. The establishment of a second IOTA foundation in Abu Dhabi raises questions about its cooperation with the United Arab Emirates.

The lack of transparency and the decline in IOTAs significance in the crypto market can be attributed to Schiener. Despite promising more transparency and decentralization, these commitments have not been fulfilled. It remains uncertain whether Schieners efforts will be successful in revitalizing IOTAs position.

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"Revitalizing IOTA: Board Upgrades Aim to Regain Top ... - Geeks World Wide

In the ever-evolving world of cryptocurrency, having a deep understanding of market dynamics is essential. Kaiko, armed with a vast collection of market data, provides investors with a valuable tool to gain clarity in this intricate ecosystem. Whether it's deciphering tumultuous events like stablecoin de-pegging or identifying early warnings of market turbulence, Kaiko's comprehensive analysis of market trends, liquidity, and trading volumes empowers investors with the knowledge needed to make well-informed decisions and mitigate risks. In a recent conversation with Kaiko, a panel of experts dissected these developments, offering valuable insights into the burgeoning tokenization trend and its profound impact on asset management. This discussion serves as a gateway to comprehending the ongoing transformation within the financial sector, shedding light on the role Kaiko's data-driven approach plays in shaping the future of digital asset investments.

The Panel Experts Included

The Discussion At A Glance

Market Data for Clarity

Kaiko's data helps investors understand complex crypto markets, especially during turbulent events. Detailed analysis covers trends, liquidity, and trading volumes, aiding in risk mitigation.

Trust in Data

Trustworthy data is essential for risk management and boosting confidence in cryptocurrencies. Identifying dubious practices, like wash trading, becomes possible with reliable data.

Demystifying Cryptocurrency

Reliable market data is vital to make sense of the intricate crypto landscape. Despite challenges like inconsistent regulations, digital assets gain acceptance as legitimate investments.

Market Evolution

The crypto market activity currently focuses on short term swings rather than developing solid investment rationales. Traditional financial methods don't always apply, creating industry challenges.

Kaiko's Resources

Kaiko's data resources, including order books and analytics, help investors navigate market dynamics. They enable investors to adapt to significant shifts, as seen in the recent UST de-peg incident.

Predictive Power

Kaiko's data collection covers vital market information, enabling the detection of market volatility. Granular insights help identify market irregularities and liquidity shifts, promoting proactive decisions.

Combating Deception

Kaiko is dedicated to supplying reliable data to combat deceptive practices. Industry-wide efforts aim to ensure the legitimacy of trading activities.

Investability

Assessing asset investability involves factors like liquidity, regulatory compliance, and transparent data. Market cap doesn't always reflect liquidity, requiring advanced analytics.

Investment Strategies

'Blue Chip' Indices and 'Mono' Asset strategies offer different investment approaches. Robust infrastructure and regulation are essential for market appeal.

Institutional Opportunities

Institutional investors find opportunities in the evolving crypto market. Informed approaches consider market stability, regulatory compliance, and digital asset volatility.

Kaiko's Mission

Kaiko aims to empower the crypto economy with superior data, bridging traditional and digital asset markets. Dependable data enhances market navigation and evaluation.

A Deep Dive into the Discussion

Enhancing Crypto Market Understanding Through Data Insights

Kaiko's aggregation of market data provides investors with crucial insights into the complex cryptocurrency market, notably during turbulent events such as stablecoin de-pegging. Their detailed analysis of market trends, liquidity, and trading volumes is essential for detecting signs of market instability, such as a stablecoin's deviation from its peg. This information equips investors to make informed decisions, mitigating the risks associated with market volatility.

The pertinence of Kaiko's accurate and exhaustive market data was recognised in debates on stablecoin solidity, underlining the company's assistance to traditional financial institutions transitioning to the digital asset space. One expert highlighted the significance of trustworthy data for risk management and fostering confidence in cryptocurrencies, particularly in identifying and comprehending dubious practices like wash trading. Edward Lashinski: "How is [wash trading] applied in crypto? How is it different from TradFi? How has this wash trading influence market manipulation and/or either risk or AML type of issues?"

Moreover, the dialogue accentuated the necessity of reliable market data to demystify the complex cryptocurrency arena. It acknowledged the challenges traditional financial bodies face, including inconsistent regulations and the intricacies of managing private keys, while recognising the growing acceptance of digital assets as legitimate investments amidst changing regulatory and trading frameworks.

Additionally, the discussions acknowledged the crypto market's distinct evolution, where the focus on transactions precedes the development of robust investment rationales. This has resulted in a marketplace where traditional financial methodologies and valuation models are not always directly applicable. The absence of uniform regulation and a standardised cryptocurrency valuation process poses significant obstacles to creating consistent industry standards and practices. The problem with crypto or its feature, I don't know, is that the secondary market is an issuance by-product... Trading started de facto, and then people try their best to reverse engineer the investment decision process, from Trading, to Investability, to Fundamentals. It's upside down, commented Bediss Cherif, Chief Revenue Officer at Kaiko.

Kaiko's market data resources, encompassing order books, liquidity details, and a variety of analytics and risk assessment tools, are invaluable for investors seeking to navigate these complexities, understand market dynamics, and brace for substantial market shifts, as exemplified by the UST de-peg incident.

Predictive Power of Data

Kaiko's extensive data collection covers a wide range of market information crucial for grasping the volatility of the cryptocurrency market. Their data, providing insights into trading volumes, market liquidity, order book depth, and historical price movements, is indispensable for investors to spot early warning signs of market disturbances, such as the UST de-peg.

The value of Kaiko's data lies in its ability to offer a granular perspective of market activities. One expert noted the importance of detecting complex wash trading patterns indicative of market manipulation and potential instability. Identifying these patterns is key to foreseeing market declines.

Furthermore, the concept of liquidity illusion in decentralised protocols underscores the fragility of market stability. These illusions, which can disappear suddenly, expose underlying market weaknesses that may precipitate liquidity crises.

Kaiko's suite of market data provides investors with a comprehensive toolkit for in-depth market analysis. This facilitates the identification of trading irregularities, order book discrepancies, or liquidity shifts, all of which could signal a decline in confidence in a cryptocurrency.

And thus, Kaiko's data and analytical research present a holistic view of market conditions, offering not only current insights but also predictive indicators for potential market shifts. Utilising data predictively allows market participants to make well-informed decisions to manage risks and seize opportunities, ideally avoiding scenarios like the UST de-peg debacle. Kaiko promotes a proactive stance in market analysis, supporting investors in manoeuvring through the complexities of the cryptocurrency ecosystem.

Combating False Volumes with Trustworthy Data

The discussion reaffirmed Kaiko's dedication to supplying reliable data, a sentiment echoed throughout the financial sector. One expert remarked on applying time-honoured financial strategies to the cryptocurrency domain attest to the ongoing amalgamation of traditional and digital asset markets. When we look at crypto from a traditional finance lens, it seems like the wild, wild West... there's centralised venues, decentralised venues, and it's all the same fungible asset, commented Moses Lee, Head of Asia for Anchorage Digital. Traditional finance strategies can serve as a template for managing crypto investments, he added, acknowledging the necessity of adapting time-tested practices to the crypto sphere. As representatives of traditional financial institutions delve into cryptocurrency, they import a demand for credible liquidity sources and professional trading operations.

A panelist addressed the complexity of managing liquidity in markets that integrate both centralised and decentralised exchanges. This complexity, corroborated by another expert, demands comprehension of the market's framework and the instruments it offers, indicative of the intricate dynamics within the crypto sector. Professionals from traditional finance seek blockchain technology for its intrinsic security, but also require the platforms built on this technology to establish their reputability.

A panellist underscored the need to recognise and comprehend patterns that may signal false volumes, such as disproportionate order-to-trade ratios and the illusion of liquidity on decentralised platforms. This focus is in line with Kaiko's mission to confront and eradicate deceptive data practices, reflecting a broader industry push to ensure the legitimacy of trading activities. The dialogue emphasises the critical importance of in-depth analysis to accurately understand a crypto asset's liquidity, fostering decisions based on robust, verifiable data. Such scrutiny and analytical rigour are essential to detect and counteract deceptive practices like wash trading, confirming that reported trading volumes truly reflect actual market activity.

Decoding Crypto Investability

The investability of the cryptocurrency sector is characterised by the assets' suitability and potential for investment, shaped by factors such as liquidity, regulatory compliance, market demand, technological integrity, and transparent market data. Notably, liquiditywhich signifies the ease of trading an asset without impacting its pricediffers from market capitalisation, which denotes the total market value of an asset. A substantial market cap doesn't always imply high liquidity, and the reverse is also true.

One of the speakers illuminated the complexity of gauging an asset's investment prospects, taking into account the technology and unique selling points. Of all the various cryptocurrencies out there, there are definitely some projects that have viable use cases, right? Maybe as an inflation hedge, portfolio diversification, or as a means of instant cross-border payment, etc., said Samar Sen, Head of APAC at Talos. The conversation turned to the significance of liquidity, alongside market cap, as value indicators. Another speaker then went on to discuss how liquidity impacts market cap, pointing out that investment viability should consider not just intrinsic value and technology but also the trading framework and regulatory context.

The crypto market's progression has frequently seen transactional activity surpass the development of comprehensive investment rationales. This reversal from the standard investment approach presents unique challenges. An expert emphasised the importance of reliable data and technology for informed decision-making by investors and compliance officers. It is and will be transformative moving forward. But the current application is notthis is evident from the current happenings, noted another speaker, highlighting the need for clearer regulations and a more profound comprehension of technological applications.

The panel also identified the absence of a universally accepted cryptocurrency valuation method as a significant hurdle in assessing their investability. There are two big elephants in the room. First, a lack of regulatory clarity and regulation. This is 100% for sure. And the other... nobody, none of us, none of you guys, can actually value crypto. No one knows whether Bitcoin should be 10 bucks or 10 million bucks, commented Edward Lashinski, Chief Executive Officer of Algorai Finance.

Evaluating Investment Strategies and Making Strategic Choices

The digital asset market has seen a clarification in investment strategies between 'Blue Chip' Indices and 'Mono' Asset approaches through recent industry dialogues. 'Blue Chip' Indices, which represent the more stable and established cryptocurrencies, attract investors seeking dependability and consistent performance. These indices are benchmarks of the market's robustness and typically include cryptocurrencies that have demonstrated stability over time.

Conversely, 'Mono' Asset strategies focus on investment in a single cryptocurrency, potentially offering significant returns but carrying greater risk due to the lack of diversification, with the investment's fate hinging on the performance of that solitary asset.

There was consensus found in the suggestion that there is a need for robust infrastructure and progressive regulatory frameworks. These elements are crucial for supporting the feasibility of 'Blue Chip' Indices and enhancing the appeal of 'Mono' Asset strategies to a broader range of investors, including those with institutional capital. There are now a lot of very reputable institutional-grade providers that have entered the market with their offerings. What products like ours are trying to do, is to professionalise the pathway for investment firms... to start working with digital assets, said Samar.

As the cryptocurrency sector matures, it presents a spectrum of investment opportunities. Institutional investors, in particular, find the evolving market advantageous, offering strategies that cater to varying risk-reward profiles. The expertise offered by industry stalwarts highlights the necessity for an informed investment approach that factors in market stability, regulatory compliance, and the inherent volatility of digital assets. With this knowledge, investors are well-positioned to make considered selections from the diverse investment options available, aligning with their individual risk appetites and investment objectives in the digital asset space.

Kaikos Mission: Empowering the Crypto Economy through Data Excellence

In the pursuit of advancing the crypto economy with superior data, recent discussions have brought forth valuable insights. These insights include the aspiration to establish a comprehensive data hub for the crypto sector, analogous to a similar role in traditional finance, with a focus on extensive data covering market analytics, indices, and research to support various financial products and regulatory standards.

The complexities of adapting traditional financial products to the cryptocurrency environment were acknowledged, particularly in relation to structured products within the crypto realm. There was also recognition of the potential for data services like Kaiko's to bridge the gap between traditional and digital asset markets. We've been busy for the past 10 years building an equivalent of Refinitiv for the digital assets space, reports Bediss. Beyond market data, we also built up the different analytics, risks and indices elements that are used by the financial services industry to operate soundly.

Additionally, discussions highlighted the significance of liquidity variations in the crypto market, especially between centralised and decentralised exchanges, and the impact of diverse regulatory landscapes. Dependable data emerged as a critical factor for effective navigation in this intricate digital asset sector.

Advancements in connectivity and liquidity infrastructure within the digital asset domain were examined, noting the rise of institutional-calibre platforms and growing professionalism among traditional firms entering crypto markets. The importance of reliable data in achieving optimal transaction execution was emphasised.

Furthermore, discussions critically examined the concept of investability, particularly the use of market capitalisation as a metric and its vulnerability to manipulation. The need for advanced data and analytics services to accurately evaluate true value within the often erratic crypto market was highlighted.

More about the speakers

Bediss Cherif, Chief Revenue Officer, Kaiko

Prior to his current role as Chief Revenue Office, Bediss Cherif was Chief Product Officer for Kaiko. Bediss has extensive experience in quant analytics for both Murex and Euronext, plus product management and development at Eurex.

Edward Lashinski, Chief Executive Officer, Algorai Finance

Edward has over 25 years experience in banking, international markets and asset management, leading and starting new businesses as an expert market practitioner. He holds multiple accreditations as a licensed fund manager, and banking executive, as well as other qualifications relating to corporate governance and compliance, and lastly an MBA from Chicago Booth. As CEO he started AlgoRai Finance, a DeFi structured products protocol, applying well established tradfi options trading principles to create value for investors seeking or possessing risk and yield based returns with digital asset exposure.

Moses Lee, Head of Asia, Anchorage Digital

Moses Lee serves as the Head of Asia for Anchorage Digital and is based in Singapore. He represents the company and its full digital assets platform to Anchorage Digitals highest value clients, prospects, and partners. Moses was previously the Asia Head of Futures & Options Electronic Trading at J.P. Morgan, and has over 20 years of experience in both traditional finance and digital assets in Asia.

Samar Sen, Head of APAC, Talos

Samar leads the Talos business in APAC, delivering institutional-grade digital asset trading systems to customers on the buy-side and sell-side. Over his 20-year career, Sen has worked in a variety of product, strategy, and technology leadership roles at capital markets firms across the industry. Prior to joining Talos, he served as the Global Head of Digital Products for Securities Services at Deutsche Bank, where he co-led the banks digital asset strategy and product delivery. In addition, he has held senior Asia-based roles at BNP Paribas, Barclays, and TradeHero after starting his career building trading systems at Goldman Sachs in New York. Sen holds a degree in Computer Science from Northwestern University and an MBA from INSEAD.

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Navigating the Cryptocurrency Landscape with Kaiko's Data-Driven ... - Hubbis