Daily Archives: November 25, 2021

US Senator Asks Coinbase, Gemini, Binance, Tether How They’re Protecting Consumers

US Senator Asks Coinbase, Gemini, Binance, Tether How They're Protecting Consumers

U.S. Senator Sherrod Brown has sent letters to cryptocurrency exchanges and stablecoin issuers, including Coinbase, Gemini, Binance, and Tether, asking how they are protecting consumers and investors. “I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins,” the senator said.

US Senator Raises Concerns Regarding Stablecoins

U.S. Senator Sherrod Brown (D-Ohio), chair of the U.S. Senate Committee on Banking, Housing, and Urban, announced Tuesday that he has sent letters to a number of crypto exchanges and stablecoin issuers.

Among the recipients of his letters are Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Centre, and Tether.

The senator asked these crypto companies how they “are protecting consumers and investors amid the risks highlighted in the recent report by the President’s Working Group on Financial Markets.”

The announcement adds: “Senator Brown emphasized the difficulties consumers and investors may face in understanding how stablecoins work and their potential risks, citing the complicated terms and conditions that many companies hide in the fine print.” The senator wrote in one of his letters:

I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins, how those terms differ from traditional assets, and how those terms may not be consistent across digital asset trading platforms.

The senator asserted that “the purchase of stablecoins through a trading platform may not provide customers with the same rights and entitlements as a direct purchase from an issuer.”

Furthermore, he noted: “Customers may have different rights based on the amount of stablecoins owned or transacted.” Senator Brown also asked six more questions in his letters which can be found here.

What do you think about Senator Sherrod Brown asking crypto exchanges and stablecoin issuers about how they are protecting consumers and investors? Let us know in the comments section below.

GAIMIN Releases Platform to Create a Global Data Processing Network With “Supercomputer” Performance

PRESS RELEASE. Manchester, UK, 25 November 2021: GAIMIN releases platform to create a global data processing network with “supercomputer” performance

UK and Swiss based gaming and blockchain company, GAIMINIO Ltd releases a PC-based platform to create a global, decentralised data processing network with “supercomputer” level performance and also announces Nicky Butt, ex-Manchester United, Newcastle and England Team Player as Company Ambassador.

A new UK-based technology platform designed to boost the world’s processing power using high-end gaming PCs has opened its platform to users. GAIMIN utilises the unused processing power available from the GPUs of high-end gaming PCs to boost global processing power virtually, effectively creating a huge global supercomputer.

GAIMIN’s platform harnesses the “spare” processing capacity from gaming PCs creating a virtual source of interconnected, networked, data processing power that businesses and institutions can tap into. GAIMIN currently uses this network of processing capacity to ‘power blockchain computations’, commonly known as mining. Blockchains form part of the underlying technology behind new advances such as cryptocurrencies, non-fungible tokens (NFTs) and the Metaverse. Using AI, the GAIMIN platform selects the most profitable blockchain to power and returns 90% of the rewards back to users.

In the future, the GAIMIN data processing network will be utilised for more complex tasks such as video rendering and future vaccine sequencing, enabling businesses to run high-demand data processing tasks without major infrastructure changes.

GAIMIN compensates the gamer in its own cryptocurrency token – GMRX. GMRX tokens can be withdrawn or more commonly spent in the GAIMIN Marketplace, on NFTs, gaming assets, accessories and merchandise.

GAIMIN’s ‘virtual’ processing power supply platform is a more efficient and effective alternative to the traditional approach to supplementing processing power, which relies on a business increasing its own hardware or using centralised data processing centres.

Backed by a board of industry experts and advisors including ex-professional Esports player and strategic coach Joseph Turner, and former Credit Suisse Vice President turned regulatory and compliance consultant to Blockchain and crypto companies, Simon Quirke, the business has a wealth of experience to lean on as it launches.

Martin Speight, CEO at GAIMIN, says: “The solution has been created to help address the fact that the world is running out of computing capacity, a belief echoed by Microsoft CEO Satya Nadella at the World Economic Forum.”

Martin explains, “The demand for data processing power continues to rise. Centralised data processing centres are one solution but not without their own significant limitations. Our solution decentralises the requirement, taking available power within a platform of interconnected devices and creating ‘supercomputer’ processing power without the associated risks.”

GAIMIN is also pleased to welcome Nicky Butt, ex-Manchester United, Newcastle and national England Team Player as Ambassador and Investor in the company.

Martin Speight, further commented, “I am delighted to welcome Nicky on board as part of the GAIMIN team. He brings a wealth of experience not only from his football and coaching career, but also from his entrepreneur and investor experience. Nicky will be a valuable member of the GAIMIN team, working as an Ambassador to represent GAIMIN, our technology and services and brand values to his wide-reaching community of business, football and gaming influencers.”

On his appointment as GAIMIN Ambassador, Nicky Butt commented “I am delighted to join the GAIMIN team. I have been looking for an exciting new business opportunity to get involved in; one that is outside of my typical area of expertise, but one that utilises the skills, experience and interests I have built up over the last few years. GAIMIN presents the ideal opportunity for me – not only as an investment opportunity but also providing me with an active role as an Ambassador for the company, helping grow the business through my contacts and experience”.

About Nicky Butt

Nicky Butt is an ex Manchester United, Newcastle United and national England team player who more recently moved into the coaching arena. Nicky spent 12 years in the Manchester United First Team, winning 7 Premier League titles. As one of the “Class of 92”, the hyper-successful Manchester United side of the 90’s, Nicky is a co-investor in Co92 initiatives, including Hotel Football, Salford City and the Co92 University – UA92.

Following an introduction to GAIMIN, and after a review of the technology and business potential of GAIMIN, Nicky has personally invested in GAIMIN and has taken the role of Ambassador for the company.

As GAIMIN Ambassador, Nicky will personally represent GAIMIN at a number of strategic business events and help promote the key marketing messages of the company to his influential network. Nicky will also contribute to the growth of the business utilising his extensive knowledge and experience in coaching, teamwork and management skills.

About GAIMIN

GAIMINIO Ltd (GAIMIN) is a UK and Swiss based gaming company focussed on helping the gaming community monetise the computational power of their gaming PC. GAIMIN has created a decentralised data processing network harnessing under utilised processing power typically found in gaming PC’s to create a world-wide decentralised data processing network, delivering “supercomputer” performance.

With a free to download PC-based application GAIMIN moentises the under utilised performance through innovative approaches to delivering “supercomputer” level data processing performance from a world-wide network of independent processing devices. Focusing initially on the powering of blockchain computations, the GAIMIN data processing network also supports a number of different large scale data processing applications, including video rendering.

GAIMIN pays users in its own crypto currency, GMRX which can then be used for purchases on the GAIMIN Marketplace for NFTs, in-game assets, accessories and merchandise, or it can be converted to fiat or a different crypto currency.

For further information, please contact:

The Americas, Middle East and Australian Pacific – Andrew Faridani, Chief Marketing Officer for GAIMIN (based in Toronto, Canada): [email protected]

UK and Europe – Marc Bray, Director of Communications for GAIMIN (based in Manchester, UK): [email protected]


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Seventh-Largest NFT Platform Rarible Launches Messaging Application

Seventh-Largest NFT Platform Rarible Launches Messaging Application

Following the non-fungible token (NFT) platform supporting Flow-based NFT collectibles, NFT marketplace Rarible has launched a direct messaging feature that gives creators the ability to connect with fans via the user’s wallet address.

Rarible Reveals Messenger Tool via Internal NFT Marketplace, Standalone Rarible Messenger to Follow

  • The NFT marketplace Rarible is the seventh-largest NFT platform in terms of all-time sales with $273.06 million in sales to date. Statistics from dappradar.com indicate that Rarible has roughly 86,489 traders using the marketplace.
  • Rarible is an Ethereum (ETH)-based NFT market but during the second week of November 2021, the platform revealed that users can now create, list, and trade Flow blockchain-based NFT collectibles on the Rarible platform.
  • The NFT marketplace announced the launch of the Rarible Messenger feature on November 23 and the firm explains that it aims to connect NFT creators with the community. At the time of writing, Rarible Messenger is live as an internal marketplace tool but in the future, the company says this will change.
  • Rarible details that the messenger protocol will be released as a standalone tool in order for people to communicate via Web3. Currently, the Rarible Messenger testing period allows a limited number of people to participate.
  • “Rarible Messenger is also the most user-friendly way to connect with anyone via blockchain, allowing users to communicate by entering each other’s wallet addresses,” a statement sent to Bitcoin.com News from the Rarible team explains. “The tool also features privacy settings, which can be enabled to block messages from unknown users.”
  • The NFT marketplace’s messenger tool also follows the firm’s Series A funding round that took place at the end of June. Rarible raised $14.2 million from investors such as Venrock, Coinfund, and 01 Advisors.
  • Rarible has a great number of competitors in the space that provide NFT marketplaces as well. The competition includes NFT market operations like Opensea, Hic et Nunc, Makers Place, Nifty Gateway, Ethernity, Hoard, Enjin, Fansforever, Foundation, Atomicmarket, Solanart, NBA Top Shot, Superrare, Aavegotchi, and more.

What do you think about Rarible launching a messenger application? Let us know what you think about this subject in the comments section below.

Jury to Decide Fate of Billion-Dollar Bitcoin Lawsuit Involving Craig Wright

Jury to Decide the Fate of the Billion-Dollar Bitcoin Lawsuit Involving Craig Wright

On Tuesday, November 23, the closing arguments for both sides of the Kleiman v. Wright trial finished and now ten jurors will decide the fate of the billion-dollar bitcoin lawsuit. While Craig Wright claims he’s Satoshi Nakamoto, he also insists the now-deceased Dave Kleiman did not help with the creation of Bitcoin. The plaintiffs are hoping to win an incredibly large sum of money and intellectual property (IP) estimated to be worth billions of dollars.

Kleiman v. Wright Trial Nears the End

The infamous Kleiman v. Wright trial is nearing its end and the cryptocurrency community is about to witness the long-awaited decision stemming from a jury in Miami, Florida. The plaintiffs’ attorney representing the Kleiman estate, Vel Freedman, tweeted about the case when the closing arguments were finished and the jury left to make a decision. “Kleiman v Wright update: Case submitted to the jury. Closings done. Now we wait,” Freedman explained on Tuesday afternoon (EST).

Freedman further thanked some of the colleagues that helped his law firm with the case. Following the closing arguments, it is now up to the ten jurors to decide. The jurors did not come to a conclusion on Tuesday and the court jurors will reconvene again on Monday. Coingeek’s Kurt Wuckert Jr. tweeted about the case and complemented Freedman after the closing arguments.

“Vel Freedman had a very strong finish for Kleiman today,” Wuckert Jr. said. “Rivero accidentally spilled his water on his notes and struggled with technical difficulties. He caught his stride, and made his points, but Freedman had a very direct and effective finish. Jury in deliberation now.”

‘Close to a Trillion Dollar Judgment’

Various estimates note that the lawsuit’s judgment could lead to a massively sized order if the plaintiffs win. Coingeek’s contributing writer Jordan Atkins estimates the judgment could see the Kleiman estate “entitled to a portion of a bitcoin fortune worth more than US$70 billion.” The Coindesk author Deirdra Funcheon projects the judgment could be around: “$36 billion (the value of bitcoin at issue)” and “$126 billion (the value of intellectual property at issue).”

Additionally, there’s billions of dollars in potential punitive damages if the Kleiman estate wins. Law360 contributing author, Carolina Bolado, has been covering the case in great detail for Law360 and on her Twitter account as well. “The amount of money the plaintiffs are requesting here is staggering,” Bolado wrote on Twitter. “If they get it all, with treble damages for civil theft and potential punitive damages, we’re looking at close to a trillion dollar judgment. It’s hard to even comprehend.” In a previous tweet Bolado wrote:

We’re wrapping up the instructions to the jury now. One interesting note: they need to be unanimous in their decision.

In addition to the summaries from Bolado, Funcheon, Wuckert Jr., and Atkins the Twitter accounts Arthur van Pelt (@mylegacykit) and the artist dubbed Fractal Encrypt (@fractalencrypt) have been covering the Kleiman v. Wright trial in great detail as well. While the court’s jurors could not come to a conclusion during the beginning of the week, the U.S. Thanksgiving holiday postponed the final proceedings for six full days.

What do you think about the upcoming Kleiman v. Wright proceedings? Let us know what you think about this subject in the comments section below.

Bitcoin Dominance Slides Below 40% for First Time in 6 Months

During the last week, the price of bitcoin has been hovering below the $60K range and digital currency advocates are wondering which way the market is headed next. At the time of writing, the crypto economy is valued at $2.81 trillion and bitcoin’s market dominance has sunk below the 40% region for several days now.

Bitcoin Dominance Slips to 39.7%, While Ethereum Dominance Commands 19%

The price of bitcoin (BTC) reached $69K on November 10, and six days later on the 16th, the price fell below the $60K zone and hasn’t returned above that region since then. Today, according to crypto coin market aggregators there are around 11,117 coins being traded on 525 cryptocurrency exchanges. The value of all more than 11K crypto coins in existence is around $2.81 trillion and it increased in value 3.9% over the last 24 hours.

Bitcoin (BTC) has an overall market capitalization of around $1.1 trillion and on Thursday, November 25, BTC dominance is 39.7%. BTC’s dominance has not been this low since mid-May 2021, or around six months ago. The last time it was lower than 40% prior to the mid-May drop was three years ago on June 17, 2018. Statistics from Coingecko.com indicate that the second leading crypto asset, ethereum (ETH), has around 19% of the market dominance on Thursday. Ether has a market valuation of around $525 billion at the time of writing.

While ethereum (ETH) has a significant portion of dominance, a slew of other crypto assets in the top 20 positions have also been swelling in value and increasing their own dominance levels. Binance coin (BNB) commands 4.02% of the $2.81 trillion crypto economy and the stablecoin tether (USDT) captures 2.74%. Solana (SOL) has increased in value a great deal this year and currently, SOL commands 2.43% of the crypto economy’s overall value. Cardano (ADA) is another that holds more than 2% as ADA’s market valuation on Thursday is 2.13% of the crypto economy.

11,116 Crypto Assets Command $1.71 Trillion in Fiat Value

Only five other crypto assets command more than 1% of the crypto economy’s fiat value and six coins have more than 0.5% of the $2.81 trillion in value. Interestingly, bitcoin (BTC) dominance held above the 60% range for two months this year, but BTC dominance slipped below 60% at the end of February. Another interesting factoid is that BTC dominance held above the 80% region during its whole lifetime (minus a few brief instances) up until the end of February 2017.

BTC’s dominance has never returned back above the 80% region but did reach 70% on January 3, 2021, the network’s 12th anniversary. Bitcoin has a lot more competition than it did in the early days, as before 2013 there were only a few hundred competitors. By the time BTC slid below the 80% dominance range in 2017, there were a few thousand alternative digital assets. Still, BTC is holding its own with $1.1 trillion in fiat value while 11,116 crypto assets hold $1.71 trillion in fiat value.

What do you think about bitcoin’s dominance sinking below the 40% zone? Let us know what you think about this subject in the comments section below.

Jailed Onecoin Mastermind Accused of Using Contraband Mobile Phone to Move $20 Million

Karl Sebastian Greenwood, one of the masterminds behind the Onecoin pyramid scheme, recently used a contraband mobile phone to move at least $20 million while holed up in a prison in the United States, an attorney for one of the scheme’s victims has said.

Onecoin Mastermind Taking Advantage of Regulators’ Failures

The lawyer representing victims of the Onecoin scam, Jonathan Levy, has alleged that the pyramid scheme’s jailed co-mastermind, Karl Sebastian Greenwood, recently moved at least $20 million which he insists was stolen from investors.

In a statement released on November 24, 2021, Levy explains how Greenwood, who is currently detained at Manhattan Metropolitan Correctional Center, was able to pull off the transfer. He said Greenwood had been aided by a network of lawyers and a contraband cellphone.

The lawyer also said the failure of the SEC and other regulators to confiscate assets and the 230,000 bitcoins stolen from Onecoin is aiding Greenwood’s cause while making it even more difficult for victims to recover their money. He explained:

I am shocked and dismayed there has been no attempt to confiscate OneCoin assets. We know that vast amounts of cash, real estate, and cryptocurrency have been unlawfully obtained. The brazen acts of Karl Sebastian Greenwood from his jail cell only confirm our worst fears that with every passing day, billions of dollars of assets are being placed beyond hope of recovery.

Contraband Cell Phone

Using numerous Powers of Attorney that were issued in Dubai, Greenwood and Ruja Ignatova, another key mastermind behind the Onecoin pyramid scheme, have successfully managed to get banks to unfreeze bank accounts that held hundreds of millions of dollars. Greenwood allegedly then used a mobile phone that is now in the possession of U.S. law enforcement to remotely execute judgment.

Meanwhile, Levy said he hopes the release of the information about some of Greenwood’s acts while in prison will force regulators in the United States, Bulgaria, and Dubai to finally act against the masterminds.

Do you agree that regulators have not done enough to help the victims of the Onecoin scam? Tell us what you think in the comments section below.

LBank Exchange Will List Dexioprotocol (DEXI) on November 27, 2021

PRESS RELEASE. INTERNET CITY, DUBAI, Nov. 25, 2021 – LBank Exchange, a global digital asset trading platform, will list Dexioprotocol (DEXI) token on November 27, 2021. For all users of LBank Exchange, the DEXI/USDT trading pair will be officially available for trading at 23:00 (UTC+8) on November 27, 2021.

Crypto investment has gone viral in recent years, but compared with the global population, crypto investors are still a small community. Dexioprotocol is a project that aims to engage vastly more people in activities that encourage them to learn about cryptocurrencies. Its DEXI token will be listed on LBank Exchange at 23:00 (UTC+8) on November 27, 2021, to further expand its global reach and help it achieve its vision.

Introducing Dexioprotocol

Dexioprotocol’s vision is a world in which blockchain technology is mainstream and infinitely more people are connected by it. The team will advance this ambition by becoming the industry standard in Augmented Reality (AR) app development, revolutionizing blockchain-based gaming, launching the most user-friendly NFT platform on the planet, and developing its very own blockchain network and exchange. Complete with an ultra-secure, incredibly sophisticated digital wallet and a state-of-the-art AR application, it will lead the way and explore this exciting new frontier.

There are multiple projects developed or planned for Dexioprotocol:

DEXI Wallet – The team has developed its very own state-of-the-art, ultra-secure digital wallet for both iOS and Android. DEXI Wallet users can store and swap their digital assets and get up-to-date market information customized to their particular goals.

Dexi Hunter App – An application that gives users access to a worldwide AR universe, which the team affectionately calls the Dexiverse. Within the Dexiverse there are AR bounties placed around the globe in the form of tokens, NFTs, and game coins. Collecting these bounties is incredibly rewarding.

Gaming – Dexioprotocol is introducing several new gaming applications to build a modern, blockchain-based gaming ecosystem. It aims to connect the infinite possibilities of blockchain technology and smart contracts with the interactive and engaging mediums of role-playing and augmented reality gaming. Games like Legends of the Dexiverse, DEXI Hero are already in development.

DEXI NFTs and Marketplace – The team is developing a digital marketplace for its Dexi NFTs to be traded on and a basis for an entire independent economic ecosystem. Enthusiasts will be able to collect NFTs through direct purchase and in-game rewards.

SmartDexio Network – The team is in the process of building an entirely new network based on the proof-of-stake concept and will use a worldwide network of validators to process its transactions in the most cost-effective and energy-efficient way.

Tokenomics of DEXI

An initial burn of 25% of the total 500.00B available token supply was initiated at launch (a total of 125B), a 10.0B burn was completed in October, and another 77.5B tokens were essentially burned by the tokenomics or locked in irretrievable wallets forever. A significant portion of that fully liquidated available supply is locked in 30-day intervals in the DxSale wallet created at launch and the liquidity pool wallet at Pancake Swap.

The current tokenomics are 5% of every transaction which is rewarded to the holders. The burn function has been turned off for the time being which means that the code is not renounced and so can be adapted over time to meet new developing needs.

DEXI is not a mint-able token and the long-term goal is to turn the burn function back on to increase the value of the token over time. The team will adapt to the market and make changes as new opportunities develop. The DEXI token will be listed on LBank Exchange at 23:00 (UTC+8) on November 27, 2021, investors who are interested in Dexioprotocol investment can easily buy and sell DEXI token on LBank Exchange by then. The listing of Dexioprotocol on LBank Exchange will undoubtedly help it further expand its business and draw more attention in the market.

Learn More about DEXI Token:

Official Website: https://dexioprotocol.com

Twitter: https://twitter.com/Dexioprotocol

Telegram: https://t.me/dexiochat

About LBank Exchange

LBank Exchange, founded in 2015, is an innovative global trading platform for various crypto assets. LBank Exchange provides its users with safe crypto trading, specialized financial derivatives, and professional asset management services. It has become one of the most popular and trusted crypto trading platforms with over 6.4 million users in more than 210 countries around the world.

Visit us on social media:

l Facebook

l Twitter

l LinkedIn

Contact Details:

LBK Blockchain Co. Limited

LBank Exchange

[email protected]


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals

Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals

China’s crackdown on its crypto mining sector, launched earlier this year, caused a massive migration of mining enterprises to friendlier jurisdictions. Miners have been moving enormous amount of coin minting hardware to new bases around the world, with Russia reportedly taking the largest share among several attractive destinations, including the U.S.

Russia, Kazakhstan, US Accept Most Chinese Mining Rigs

The influx of Chinese miners in several countries which either provide certain regulatory clarity or offer cheap energy has been accompanied by a large transfer of mining equipment. Data compiled by the Financial Times shows that 14 of the world’s biggest crypto mining businesses have evacuated more than 2 million mining machines out of the People’s Republic after the government in Beijing launched a nation-wide crackdown on the industry in May.

North America and Central Asia have turned into mining hotspots, but it’s Russia that has taken the top spot. The report reveals that at least 205,000 mining devices have been transported to the Russian Federation out of a total of over 430,000. Following China’s decision to go after bitcoin miners, the Russian firm Bitriver received 200,000 machines from Chinese miners, while the Moscow-based Bit Cluster accommodated another 5,000.

Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals

Neighboring Kazakhstan has become a major mining destination as well. The country, which maintains a capped electricity rate, now hosts numerous data centers run by Chinese mining companies. According to the FT numbers, most of the relocated 87,849 Chinese mining rigs came from Bitfufu, which shipped 80,000 machines to crypto farms in Kazakhstan, and BIT Mining, which deployed 7,849 devices by August.

Both former-Soviet countries are facing challenges related to their growing crypto industries. Russia is yet to regulate the sector with mounting opinions among officials that mining should be recognized as an entrepreneurial activity and taxed accordingly. Kazakhstan is experiencing power shortages largely blamed on crypto miners while authorities are mulling over the introduction of registration for miners and a higher electricity tariff.

The published figures also show that eight out of the 10 largest crypto farms in North America have expanded the number of mining devices they are hosting since the Chinese ban was enforced. The U.S. is right behind the Central Asian country, having accepted 87,200 mining machines from China. Canada ranks fourth with 35,400, followed by two South American nations — Paraguay with 15,500 and Venezuela with 7,000.

The liquidations in China have depressed the price of mining equipment such as the popular Antminer S19, the Financial Times notes. The model’s value fell by almost 42% from May to July, the newspaper detailed quoting market data provided by mining company Luxor.

Chinese mining hardware manufacturer Bitmain, which builds and offers the S19 device, announced in June it was suspending sales to “help the industry transition smoothly” and reduce market pressure. “The focus of the market has shifted from a lack of equipment to a lack of space for its placement,” a representative of Russia’s Bitriver commented.

What do you think about the findings in the report on the migration of miners and mining equipment from China? Share your thoughts on the subject in the comments section below.

Mercadolibre to Allow Users to Invest in Cryptocurrencies From Its Platform

mercadolibre

Mercadolibre, one of the biggest online retailers in Latin America, has started rolling cryptocurrency trading services to a selection of their customers and plans to expand this test in the coming weeks. Mercadopago, the payments service native to the platform, will allow these customers to purchase, hold and sell cryptocurrencies directly from the platform. The pilot run will start in Brasil and it might extend to other countries later.

Mercadolibre Forays Into Crypto Services

Mercadolibre, the biggest Latam-based company, has started including cryptocurrency services in its platform. Now, users of Mercadopago will be able to purchase, sell and hold cryptocurrencies using Mercadolibre’s platform. This is a logical step for the company, that acts as an intermediate between companies offering products and services in the platform and customers consuming these.

The test run of the service was rolled out quietly earlier this month to some customers in Brazil, and it is expected to keep expanding to more customers in the coming weeks. Mercadolibre is thinking about growing this test into other markets in the future, but nothing has been announced about the subject. On including crypto as part of its business model, Tulio Oliveira, a Mercadopago vice president, stated:

We took the time to study and learn before deciding to step into crypto. This has a transformational potential ahead and opens up a new avenue for us.

Flirting With Crypto and Limitations

The company has been interested in crypto for quite some time, having invested in cryptocurrencies before. Mercadolibre bought $7.8 million worth of bitcoin (BTC) during Q1 of this year, disclosing it last May when it reported its first-quarter financial results. Marcos Galperin, co-founder, and CEO of the company has been very vocal about how cryptocurrencies can provide alternatives to traditional investments, having invested in crypto companies like Ripio personally.

About cryptocurrencies, Galperin stated:

Cryptocurrencies are here to stay. They have a very important role, not so much as a means of payment but as a store of value.

Perhaps following Galperin’s train of thought, users of Mercadolibre won’t be able to purchase goods and pay for services with cryptocurrencies immediately. But if the company wants to emulate Paypal, its next step would be to include cryptocurrencies as a payment method for purchases in the platform.

Mercadolibre’s actions might make other big companies in the area to also consider adding cryptocurrencies in their business model if everything goes right during this trial run.

What do you think about Mercadolibre including cryptocurrency services in its platform? Tell us in the comments section below.

EY Survey Finds 1 in 4 Hedge Funds to Increase Crypto Exposure Next Year

EY

EY, one of the big four consulting and auditing firms in the world, found that one in four hedge funds are expecting to increase their crypto exposure for the next year. The 2021 EY Global Alternative Fund Survey describes that alternative fund managers are slowly taking a stable place in the portfolios of investors, with digital assets being present, albeit in a small way.

EY Survey Finds Hedge Funds Hungry for Crypto Exposure

The 2021 Global Alternative Fund Survey, a survey compiled by EY, one of the big four companies, shows the performance and popularity of alternative fund managers among investors during the year. The survey has found that hedge funds are one of the most open platforms to include crypto assets in their structures. According to the survey, one in four hedge funds is studying to increase their exposure to cryptocurrencies in the next year.

Due to the coronavirus pandemic, investors had to go through an interesting year with many challenges, and navigating through this gave a big opportunity to alternative fund managers. However, cryptocurrency is not popular with a lion’s share of these fund managers currently, with just one in ten reporting having exposure to these assets, showing there is room for growth. In any case, these funds had an impressive performance. 51 percent of the investors surveyed reported having increased value delivered by these alternative investments, having met or exceeded their expectations.

Digital Assets as Alternative Investments

The rise of digital assets (cryptocurrencies) as an important asset class, has made companies and fund managers turn their gaze to these as relatively profitable products in today’s convoluted markets. While the real involvement of these with cryptocurrencies has not been as big as with other nonregulated assets, they are starting to carve a niche in the area.

This growth has been achieved in the face of an unstable current situation when it comes to traditional investments, with investors seeking to occupy new markets with new strategies. The survey made these findings based on conversations involving 210 managers and 54 investors and offers a glimpse on the future of alternative investments, and how cryptocurrency might be a big part of it.

About the importance of the decisions made in this crossroads year, Natalie Deak Jaros, EY Global Hedge Fund Co-leader stated:

This research highlights the resilience of our industry and the key transformations that managers and investors are partnering to affect. 2021 was a year in which the industry invested to build significant momentum around various initiatives that will pay dividends for years to come.

What do you think about the one in four hedge funds studying to increase their exposure to cryptocurrencies next year? Tell us in the comments section below.