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| June 18, 2019

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Alibaba weighing $20-billion Hong Kong offering after smash U.S. IPO

May 29, 2019 |

Alibaba Group Holding is considering raising $ 20 billion via a second listing in Hong Kong after a record-breaking 2014 New York debut, people with knowledge of the matter said — a mega-deal that will bring China’s largest company closer to friendlier investors at home as U.S. tensions escalate.


L.A. Times – Business

The Number of Crypto Exchanges Offering Margin Has Multiplied

April 21, 2019 |

Until recently, Bitmex, Deribit and a handful of established exchanges were the only places where traders could get their leverage fix. This has now changed with the emergence of dozens of exchanges offering leverage and plenty more on their way. Binance and Kucoin – two platforms famed for driving this year’s other exchange trend, the IEO – are believed to be mulling the introduction of margin trading. In 2019, it seems, everything’s being served with leverage.

Also read: Darknet Users Allege Wall Street Market Exit Scammed, Possibly Snatching $ 30M

Margin Trading Is so Hot Right Now

Margin trading and initial exchange offerings (IEOs) have proven to be the dominant trends among cryptocurrency exchanges this year. Bibox is the perfect case in point: the exchange, which offers up to 3x leverage on BTC, recently entered the IEO game, announcing the launch of no less than four projects on Bibox Orbit simultaneously to commence on April 22: The Force Protocol (FOR), Ludos (LUD), Staking (SKR), and X-Block (IX).

The Number of Crypto Exchanges Offering Margin Has Multiplied

FTX is another platform that encapsulates one of 2019’s defining crypto exchange trends, in this case for leverage. The derivatives exchange, backed by trading firm Alameda Research, offers futures, leveraged tokens at up to 3x, and OTC trading. With leverage of anywhere from 2-100x, these exchanges multiply the thrill – and the risk – of going long or short on bitcoin and other digital assets. Where once traders had a handful of options, now there are dozens, as the number of platforms offering margin and derivatives products has proliferated.

The Number of Exchanges Offering Leverage Has Increased 10x

The Perils of Offering Leverage

On market data sites such as Coincodex, Coinlore, and Coinpaprika, the number of exchanges offering leverage now runs to more than 50. Some provide margin trading on leading coins such as BTC, ETH, and BCH, while others have gotten more adventurous, offering products such as leveraged futures on Telegram’s still unreleased gram token. For traders lured by the prospect of tripling their money through little more than cranking up a slider and letting the multiplier effect take care of the rest, there are a few perils to be aware of – aside from the obvious risk of being liquidated.

The Number of Crypto Exchanges Offering Margin Has Multiplied

Bitmex takes pride in the size of its insurance fund, which currently stands at close to 24,000 BTC, but the majority of leveraged exchanges aren’t nearly so well equipped. With smaller exchanges, a large trader’s account going bankrupt can lead to clawbacks from other accounts to cover the loss. Poorly designed risk management systems exacerbate this risk. The complexities of offering leverage are significant, necessitating collateral to be posted for separate margin wallets for each digital asset. Newly launched futures exchanges also typically suffer from low volume and poor liquidity due to a small customer base, which in turn makes it more difficult to attract customer flow and market makers.

The Number of Crypto Exchanges Offering Margin Has Multiplied
Okex rolled back its futures contracts following a massive liquidation in July 2018

It’s not just new exchanges that can get things from when it comes to managing margin, either: last year Okex suffered a $ 9M clawback after a trader placed a large BTC order and was then liquidated after the asset crashed. As FTX notes, “If a user has a leveraged futures position on and markets move against their account enough that their net asset value is negative, then someone has to pay for that loss.” It continues:

In crypto you can’t repossess assets from the bankrupt account’s owner from outside the system, so you’re stuck with other users — the users who aren’t getting liquidated — footing the bill.

With the public’s appetite for leveraged everything and IEOs for everything showing no signs of being sated, expect to see plenty more of both in 2019. In an increasingly competitive marketplace, with hundreds of platforms jostling to gain a foothold, margin, despite its hazards, is seen as a key way to attract traders and stay relevant.

What are your thoughts on the proliferation of exchanges offering margin trading? What’s your favorite platform for leveraged trading? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post The Number of Crypto Exchanges Offering Margin Has Multiplied appeared first on Bitcoin News.

Bitcoin News

Fidelity’s Cryptocurrency Arm Starts Offering Institutional Investor Services

March 9, 2019 |

Fidelity's Cryptocurrency Arm Starts Offering Services to Institutional Investors

Fidelity Investments’ new cryptocurrency arm is now up and running. The unit, Fidelity Digital Assets, began operations earlier this quarter but didn’t make any noise about it. It has already started offering trade execution and crypto custody services to institutional investors such as hedge funds and private wealth management firms.

Also read: UN Panel: North Korea Hacked $ 571M From Asian Crypto Exchanges

Bear Market – What Bear Market?

Tom Jessop, who heads Fidelity Digital Assets, told CNBC that the so-called crypto winter hadn’t affected the rolling out of operations at the new unit. Weak prices have also failed to put a damper on the company’s institutional cryptocurrency offerings, he stated.

“In terms of our pipeline, prices really haven’t had an impact. If you started a crypto fund at the height of the market you’re probably hurting right now,” Jessop was quoted as saying, on Mar. 8. Fidelity Investments first announced the creation of its cryptocurrency subsidiary last October.

Fidelity's Cryptocurrency Arm Starts Offering Institutional Investor Services

However, since the announcement, bears have continued to dominate the market. Last year, bitcoin core lost more than 80 percent of its value, skidding from a peak of almost $ 20,000 to $ 3,879 as of this writing.

In 2019, prices have appeared to stabilize between $ 3,300 and $ 4,000. But conservative institutional investors, such as those courted by Fidelity, have hesitated to enter the cryptocurrency space. That’s partly due to concerns over bitcoin’s volatility, which can swing or crash by as much as 10 percent within a matter of hours.

Wait and See Attitude

Jessop admitted that institutional investors are still in “wait and see” mode where cryptocurrency investments are concerned. However, he explained that there is long-term interest from such investors to add some crypto to their portfolios. Many corporate investors consider cryptocurrency a store of value during a crisis, while others look at it as an opportunity to trade. Jessop opined:

If anything, they (institutional investors) are as encouraged now as they were when prices were higher. At some point, there will be an attractive entry point. But by the same token people don’t want to be early even if we’re well off the highs.

To establish the level interest, Fidelity surveyed about 450 institutions, including the rich, hedge funds and endowments, CNBC reported. The results showed 22 percent of the respondents already owned cryptocurrency and were planning to double their portfolios.

Fidelity's Cryptocurrency Arm Starts Offering Institutional Investor Services

Fidelity Digital Assets will help these investors to buy and sell cryptocurrencies across several exchanges as well as store the digital assets safely. Jessop also revealed that some aspects of the business remained a work in progress, such as expanding the areas where it can do business while attending to competing client needs, some of whom require a bit of education in crypto investing.

Fidelity’s entry into the cryptocurrency industry is viewed as a major turning point for drawing institutional investors into the same space. The 72-year old family-run company manages retirement plans and mutual funds.

What do you think about Fidelity’s new cryptocurrency unit? Let us know in the comments section below.


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Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com

The post Fidelity’s Cryptocurrency Arm Starts Offering Institutional Investor Services appeared first on Bitcoin News.

Bitcoin News

Nasdaq Stock Exchange to Start Offering BTC and ETH Indices

February 14, 2019 |

Nasdaq Stock Exchange to Start Offering BTC and ETH Indices

The Nasdaq stock exchange will start offering real-time information on two new indices tied to the cryptocurrency market – bitcoin core and ethereum. Both indices will be included on the exchange’s existing platform of indexes starting Feb. 25.

Also read: Indonesia’s Futures Regulator Issues New Rules For Crypto Assets

BLX and ELX Indices Capture Data From Multiple Exchanges

The Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) will “provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, and based on the most liquid ends of their markets,” said Nasdaq in an online statement published Feb. 11.

Nasdaq Stock Exchange to Start Offering BTC and ETH Indices

According to the statement, both the “BLX and ELX work by capturing data from multiple exchanges to provide a single price point for BTC and ETH, which helps traders, get in and out of a given position.” Nasdaq claims the methodology has been verified by independent auditors.

“The BLX is one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010. Likewise, the ELX has been calculated back to 2014,” said the exchange.

 Driving Mainstream Crypto Adoption

The two indices were created by Brave New Coin. Nasdaq’s latest move is seen as key to introducing cryptocurrency to traditional stock market investors on Wall Street and elsewhere, thereby driving mainstream adoption. The stock exchange has swam against the tìde in being drawn to crypto assets, starting with publishing analytical reports on Bitcoin and partnering with Vaneck to launch BTC futures trading in a falling market last year.

Nasdaq Stock Exchange to Start Offering BTC and ETH Indices

The two new indices join several dozen of Nasdaq’s indices including the Nasdaq Composite, its main index, and the Nasdaq 100, through its Global Index Data Service. The data service is a real-time feed that consolidates all Nasdaq indexes and ETF valuation data, including third-party partner data.

Nasdaq is the world’s second largest stock market by capitalization, behind only the New York Stock Exchange. More than 3,400 companies are listed on the bourse, which boasts a total market value of $ 10 trillion. Cryptocurrency is expected to benefit from the exchange’s expansive reach. Acceptance by institutional investors which dominate trade on Nasdaq is regarded by some as a major step towards mainstreaming virtual currencies as well as increasing adoption.

What do you think about the inclusion of BTC and ETH indices on the Nasdaq stock exchange? Let us know in the comments section below.


Images courtesy of Shutterstock.


Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com

 

The post Nasdaq Stock Exchange to Start Offering BTC and ETH Indices appeared first on Bitcoin News.

Bitcoin News

As the housing market slows, builders are offering buyer discounts

January 11, 2019 |

As the housing market has downshifted, more builders are offering sweeteners to close the deal.

Companies large and small are paying closing costs, buying down mortgage rates and trimming square footage to offer a cheaper abode. Some are countering the high cost of a mortgage with a more direct…


L.A. Times – Business

They Need Pumps to Get to 15 Trapped Men. No One Is Offering

December 26, 2018 |

Rescuers are now citing “the Almighty” as one of their last hopes for getting 15 coal miners out of a “rat-hole” mine in the Indian state of Meghalaya. Per ABC News , things look dire for the trapped men, who didn’t emerge from the mine on Dec. 13, and those seeking…
Newser

Bitwala Begins Offering Bank Accounts With Bitcoin Wallet and Debit Card

December 12, 2018 |

Bitwala Begins Providing Bank Accounts With Bitcoin Wallet and Debit Card

Cryptocurrency banking provider Bitwala has started offering its banking service to cryptocurrency users in Germany, starting with 40,000 pre-registered customers. A spokesperson for the company has shared details with news.Bitcoin.com about this new service which will soon add support for additional countries and cryptocurrencies.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

New Banking Service for Crypto Users

Bitwala Begins Providing Bank Accounts With Bitcoin Wallet and Debit CardBitwala announced on Wednesday, Dec. 12, that it has started offering banking service to cryptocurrency users. “New users along with the 40,000 pre-registered customers will be onboarded one after the other based on their waitlist place,” the announcement read.

Bitwala Begins Providing Bank Accounts With Bitcoin Wallet and Debit CardThe bank accounts are hosted by Berlin-based Solarisbank. This Bitwala partner has a banking license, so it is supervised by Bafin and Bundesbank, Germany’s banking authorities.

Roman Kessler, a spokesperson for Bitwala, told news.Bitcoin.com:

For now, only German residents can go through the KYC [know-your-customer] process. Very soon, hopefully already in January, this will be extended to other jurisdictions inside of the EU.

Account opening takes a few minutes, the company noted, adding that customers need an ID to open an account. They must also complete the KYC process which includes video verification. The company also explained that “As with any bank account in Germany, all euro deposits up to €100,000 [~$ 113,274] are protected by the German Deposit Guarantee Scheme (DGS).”

Bitwala Begins Providing Bank Accounts With Bitcoin Wallet and Debit Card

Bank Account With Crypto Support

With the new Bitwala bank accounts, users will receive an Iban and a contactless debit card which will allow them to buy and sell BTC and manage expenses. The Bitwala account comes with a bitcoin wallet. Users can manage both their BTC and euro deposits in one place, the announcement describes.

Bitwala Begins Providing Bank Accounts With Bitcoin Wallet and Debit Card
A Bitwala debit card.

“The new bank account offers users SEPA transactions, easy management of recurring payments, and comes with a debit card for on-the-go payments and ATM cash withdrawals,” Christoph Iwaniez, the company’s chief financial officer, commented. “For instance, customers will be able to use their Bitwala account to receive salary payments and pay their rent. And if you want to trade bitcoin, you can draw liquidity from the same current account.”

Kessler further shared with news.Bitcoin.com:

Only bitcoin [is supported] at the moment. You can access them through a multi-sig wallet to which only you have the private key. Other cryptocurrencies to follow shortly.

He also emphasized that “The online bank account and the [debit] card are free,” but trading between BTC and EUR costs 1 percent. “According to our market research that is 5 percentage points below market average.”

What do you think of Bitwala’s new service? Let us know in the comments section below.


Images courtesy of Shutterstock and Bitwala.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bitwala Begins Offering Bank Accounts With Bitcoin Wallet and Debit Card appeared first on Bitcoin News.

Bitcoin News

Uber is said to file confidentially for initial public offering, racing rival Lyft to go market

December 8, 2018 |

Uber Technologies Inc. filed documents confidentially this week with regulators for an initial public offering, said a person familiar with the matter who asked not to be identified because it was private.

The offering could be the largest IPO next year and one of the five biggest of all time….


L.A. Times – Business

Facebook is accused of offering advertisers special access to users’ data

December 6, 2018 |

A key British lawmaker alleged Wednesday that Facebook maintained “whitelisting agreements” that gave select companies preferential access to valuable user data several years ago, offering insight into how the company balanced concerns about user privacy with the business imperative of growing…


L.A. Times – Business

LoanMe stops offering personal loans in Wisconsin following Times report

November 14, 2018 |

LoanMe, a high-interest lending company in Anaheim, has stopped making personal loans in Wisconsin after a Times report that drew connections between the company and a legally troubled firm that was not permitted to make loans there.

LoanMe no longer advertises loans to Wisconsin residents on its…


L.A. Times – Business