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BlockFi Announces Rate Increases On Bitcoin Accounts, Slashes Rates On Ethereum

Crypto lender BlockFi has announced adjustments to its interest rates on account balances for bitcoin (BTC) and ether (ETH). The startup, through its monthly update published Tuesday, May 21, has informed customers that accounts whose bitcoin (BTC) balances are more than 25 BTC will benefit from 0.15% increase in interest rate. On the other hand, […]

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Crypto lender BlockFi has announced adjustments to its interest rates on account balances for bitcoin (BTC) and ether (ETH).

The startup, through its monthly update published Tuesday, May 21, has informed customers that accounts whose bitcoin (BTC) balances are more than 25 BTC will benefit from 0.15% increase in interest rate.

On the other hand, interest rates for accounts whose ether (ETH) balances the range between 25 and 75 ETH will drop from 6.2% to 3.25%.

The interest rates for accounts with bitcoin balances of between 0.5 BTC and 25 BTC remains unchanged, the firm noted. However, accounts with more than 100 ETH stand to earn an annual percentage yield (APY) of 0.2%

BlockFi has explained the move by noting that the lending environment for the two cryptocurrencies has changed, with that of bitcoin flourishing while ETH’s has floundered.

In particular, cryptocurrency exchange Poloniex offers ether at a 0.01% borrowing rate. The same rates apply at crypto lending startup Compound, while it only made up 3% of Genesis Capital’s portfolio in Q1 2019.

According to BlockFi, its adjustments in interest rates correspond to the above scenarios.

When it launched its interest-bearing accounts for BTC and ETH on March 4, BlockFi’s interest rates for both cryptocurrencies was 6% APY. That however changed within three weeks when the crypto-lending firm lowered interest rates for top deposit accounts.

The initial rates for both accounts were set at 6.2%, slightly higher than what BlockFi had noted earlier.

But in its announcement, the startup said that it would cut the rates from 6.2% to 2%, with the reduction affecting BTC accounts with more than 25 BTC or ether accounts with over 500 ETH. The changes were set to take effect in April.

At the time, the above cuts did not affect a majority of account holders, with 75% of all the BTC and ETH accounts reportedly having balances lower than 5 BTC or 150 ETH.

Some industry players have sharply criticized BlockFi for the manner in which the firm’s terms and conditions allow it a free hand at setting interest rates on a monthly basis.

For instance, critics have said that the company’s advertising has very little to do with its policy. The founder of law firm Silver Miller, David Miller, noted that BlockFi’s T&Cs “shows that their advertising is not necessarily what they’re guaranteeing.”

He added that it would not be surprising to see people “confused” when the 6.2% rates didn’t materialize. According to him, the company’s advertising makes it appear as if the rates are “guaranteed,” (and they are not).

Gemini Trust Company, regulated by the New York State Department of Financial Services (NYDFS), is reportedly the custodial provider for BlockFi’s assets. Customers can withdraw all their assets at any time once they place a request for the same.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

Source link: BlockFi Announces Rate Increases On Bitcoin Accounts, Slashes Rates On Ethereum

Source: https://xbt.net/blog/blockfi-announces-rate-increases-on-bitcoin-accounts-slashes-rates-on-ethereum/

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U.S. Treasury Targets Stablecoins in Latest Regulatory Risk Assessment

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As regulatory pressure mounts in the U.S., policymakers are putting stablecoins at the top of their agendas.

Citing “people familiar with the matter,” Bloomberg has reported that officials are crafting a policy framework set to be released in the coming weeks. Their primary concern is ensuring that investors can reliably move money in and out of tokens, it added.

The anonymous insiders are worried that a “fire-sale run on crypto assets could threaten financial stability and that certain stablecoins could scale up dangerously fast.”

Strengthening Regulatory Efforts

The Financial Stability Oversight Council is also preparing a formal review into whether stablecoins pose an economic threat.

The officials are focusing on how stablecoin transactions are processed and settled and whether market conditions have an impact, it added. Tomicah Tillemann, global head of policy at a crypto fund run by venture capital giant Andreessen Horowitz, commented:


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“It is significant and very consequential that we are witnessing early steps to create a regulatory framework around digital assets. That’s a big deal.”

The report, when released, will go to the President’s Working Group on Financial Markets. The body includes key agency heads such as Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and Securities and Exchange Commissioner Chair Gary Gensler.

In late July, Yellen called for urgency in regulating stablecoins after stating that they are not adequately supervised. Gary Gensler echoed the sentiment in early August, stating that regulators must act to protect investors from fraud.

Also, in late July, Acting Comptroller of the Currency, Michael Hsu, said regulators are looking into Tether’s commercial papers to see whether each USDT token was really backed by the equivalent of one U.S. dollar.

Tether has repeatedly issued assurances that its reserves are fully backed but has yet to produce a full independent audit.

Stablecoin Ecosystem Update

Tether remains the market leader with a current supply of 69.4 billion, according to the Tether Transparency report. This is close to the all-time high for USDT, which tapped 70 billion earlier this week.

Of that total, 36 billion or 51.8% is based on the Tron network, with 33.8 billion or 48.7% running on Ethereum. USDT supply has grown by 232% since the beginning of the year.

Rival stablecoin, USDC, from Circle currently has 29.3 billion in circulation after gaining 651% in terms of supply growth so far in 2021.

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Source: https://cryptopotato.com/u-s-treasury-targets-stablecoins-in-latest-regulatory-risk-assessment/

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Cardano, Chainlink, MATIC Price Analysis: 19 September

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Most altcoins in the market have been consolidating or recording losses over the last 24 hours. Cardano fell by 3% and inched closer to the support line of $2.20. Chainlink also depreciated by 5% and was trading closer to its three-week low price. Lastly, MATIC was seen moving closer to its one-week low price of $1.29 after registering a loss of 5% over the past day.

Cardano (ADA)

Cardano, Chainlink and MATIC Price Analysis: 19 September

ADA/USD, TradingView

Cardano lost 3% of its valuation over the last 24 hours. The altcoin was priced at $2.33. Over the last few days, ADA has been consolidating. The nearest support line for the coin stood at $2.20 and then at $1.72. 

On the four-hour 20-SMA the alt’s price was seen below it, indicating that the momentum belonged to the sellers. The Relative Strength Index was below the 50-mark. The Chaikin Money Flow also was seen below the half-line as capital inflows were low.

MACD witnessed a bearish crossover and flashed red bars on its histogram. If ADA moved on the upside, the first resistance mark stood at $2.49, toppling which it could retest $2.79. The other price ceiling stood at the multi-month high of $3.04. 

Chainlink (LINK)

Cardano, Chainlink and MATIC Price Analysis: 19 September

LINK/USD, TradingView

Chainlink was priced at $27.80 after it recorded a loss of 5% over the last 24 hours. LINK’s nearest price floor was at $27.78. Falling below which the coin could trade near its three-week low of $24.45. 

Parameters pointed towards negative price action. On the four-hour chart, LINK’s price was below the 20-SMA. This reading suggested price momentum was inclined towards the sellers. The Relative Strength Index was below the half-line.

Awesome Oscillator flashed red signal bars. MACD also displayed red bars on its histogram. On the flipside, once buying pressure revives, the altcoin could attempt to retest the $32.37 resistance mark and then revisit $35.83. 

Polygon (MATIC)

Cardano, Chainlink and MATIC Price Analysis: 19 September

MATIC/USD, TradingView

MATIC depreciated by 5% and was trading at $1.39. The altcoin’s immediate support line was at $1.29 which also is the one-week low price level. The other price floor was at its over a month-long low price point of $1.07. 

Bollinger Bands converged, indicating that price volatility would remain low over the upcoming trading sessions. MACD was bearish with red bars on its histogram. The Relative Strength Index was also seen below the half-line. 

MATIC’s movement on the upside could mean that the coin would meet with its first resistance at $1.42 and then at $1.54. Toppling over these levels, the coin could revisit its multi-month high of $1.76.

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Source: https://ambcrypto.com/cardano-chainlink-matic-price-analysis-19-september

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The Crypto Mining Fight in China Is Not Over

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It looks like China is still not done clamping down on the crypto mining space. Another region known as the Hebei province has agreed to comply with Beijing’s ruling that all crypto mining should be omitted from China’s workforce. The province is now claiming that the practice is illegal and must end within its borders no later than September 30.

China Is Still Kicking Miners Out

China shocked the world not too long ago when it decided that all crypto mining should cease. The idea was that energy used for crypto mining purposes was hazardous to the planet, and that it was setting humans on the wrong path. Thus, regulators stated that it was time to bring things to an official end.

What was most surprising about the ruling is that the country, at the time, was home to nearly 75 percent of the world’s total crypto mining operations. Thus, it stood to lose a lot of money and tax revenue by initiating the clampdown. In addition, the country is home to two of the world’s biggest developers and distributors of bitcoin mining equipment in Bitmain and Canaan Creative.

Nevertheless, China has moved forward in its decision. Many mining operators were forced to shut down their businesses and move elsewhere, and quite a few have popped up in countries such as Kazakhstan and in states like Texas and Florida. Both these regions in America have stated they are open to crypto mining projects given that they can potentially lead to healthier local and state economies, and they will create jobs for interested workers.

The Hebei province issued the following statement:

Cryptocurrency mining consumes an enormous amount of energy, which is against China’s ‘carbon neutral’ goal.

The arguments against crypto mining have become rather prominent in recent months. One of the most notable stemmed from Elon Musk, the South African entrepreneur behind billion-dollar companies such as SpaceX and Tesla. He stated early in the year that he was willing to permit bitcoin payments for electric vehicles. A few weeks later, however, he rescinded this decision, claiming that miners were not utilizing their energy correctly, and he could not condone bitcoin unless carbon emissions were brought down.

Too Much Bad Energy in the Air!

Another argument came from Kevin O’Leary of “Shark Tank” fame. The billionaire investor claimed that he would no longer be purchasing any BTC mined in China given that the country was not known to utilize green energy for mining purposes. China later took this issue to heart, it seems.

Starting in October of this year, bitcoin and crypto mining in China will be completely illegal. Regulators in the nation have stated that they will keep a close eye on the mining space and will work to punish all those who disobey the rules.

Tags: china, Crypto Mining, Hebei province
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Source: https://www.livebitcoinnews.com/the-crypto-mining-clampdown-in-china-is-not-over/>

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