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Grayscale Is Now One of the World’s Largest Holders of BTC

The Grayscale Bitcoin Trust now holds of a rather solid portion of the world’s total BTC units. Grayscale Is a Major Bitcoin Manager Chief executive officer Michael Sonnenshein commented in a recent interview that thanks to newfound respect for BTC amongst institutional traders, the Grayscale Bitcoin Trust presently manages a record three percent of the

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The Grayscale Bitcoin Trust now holds of a rather solid portion of the world’s total BTC units.

Grayscale Is a Major Bitcoin Manager

Chief executive officer Michael Sonnenshein commented in a recent interview that thanks to newfound respect for BTC amongst institutional traders, the Grayscale Bitcoin Trust presently manages a record three percent of the world’s total BTC thanks to an increase in activity from its professional clientele.

In 2020, companies such as Square, MicroStrategy, Stone Ridge and MassMutual put millions – and sometimes hundreds of millions – of dollars into the world’s largest and most popular cryptocurrency by market cap, and Sonnenshein is convinced the trend is likely to continue well into 2021 and beyond.

He states:

We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments. The sizes of allocations they are making are growing rapidly as well.

Grayscale is a company that presently has about ten hedge funds in its name. Many of these funds are crypto based such as those delving in bitcoin and Ethereum. Overall, the enterprise manages well over $25 billion in assets. This is huge considering just a year ago, the company only managed about $2 billion, suggesting Grayscale account activity has increased tenfold in just 12 short months.

Furthermore, bitcoin has recently hit $40,000 and is only expected to get larger throughout the year. This is likely to increase Grayscale’s asset total even further. The company has experienced such a boom in business that it is now looking to add about two dozen new employees to its hiring roster. In addition, it is also looking to invest more money in advertising campaigns and into several new products that will be distributed at various points throughout the year.

Sonnenshein further stated that he believes Grayscale’s newfound bitcoin activity may also be contributing to the overall success of the asset. He explains:

So, there is definitely an argument to be made about Grayscale and really any other vehicle that may be removing bitcoin from circulation and putting it into a financial product inherently increasing the scarcity of an already scarce asset. This is a verifiable scarce asset and so when there are mechanisms that are removing them from circulation, that’s inherently making it an even scarcer asset.

Making The Asset Rarer and More Valuable

By decreasing the amount of bitcoin in circulation and making it harder to buy, the asset inherently becomes rarer. It is thus more valued by markets and investors alike.

Sonnenshein has been working with Grayscale since 2014. Prior to serving as the CEO, he worked as Grayscale’s managing director. Before that, he was employed through JPMorgan Chase & Co. and was also an analyst with Barclays. Grayscale is presently based in the New York area.

Tags: bitcoin, Grayscale, Michael Sonnenshein Source: https://www.livebitcoinnews.com/grayscale-is-now-one-of-the-worlds-largest-holders-of-btc/

Blockchain

Chainlink (LINK) Registers New All-Time High Above $22 With High Whale Activity & Paxos Partnership

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While Bitcoin (BTC) and Ethereum (ETH) are showing some tumultuous volatility, it’s time to look at some of the lesser-known altcoins. Oracle service provider Chainlink has shot 22% to hit a new all-time high above $22. At press time, LINK is trading at a price of $22.16 with a market cap of $8.8 billion.

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With this move, LINK has become the ninth most valuable cryptocurrency replacing Stellar (XLM). The Chainlink rally has been back with strong on-chain fundamentals. On-chain data provider Santiment shows its “Holders Distribution data” wherein the whale number has remained high whereas the mid-tier addresses are growing rapidly.

Courtesy: Santiment

On the other hand, the active address for LINK has also hit a new 5-month high. This possibly comes on the backdrop of rising DeFi activity as Chainlink finds a solid use-case in the Decentralized Finance (DeFi) space.

Paxos Global Partners With Chainlink to Enter DeFi

Cryptocurrency brokerage platform and leading financial market infrastructure Paxos announced its partnership with Chainlink on Thursday, January 14. Paxos will leverage Chainlink’s decentralized oracle network to make its asset-backed token Paxos Standard (PAX) and Paxos Gold (PAXG) available across the decentralized finance (DeFi) market.

Adding Paxos tokens to the Chainlink feed will make integration easier for different DeFi applications. Walter Hessert, Head of Strategy at Paxos said:

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“Chainlink oracles will accelerate the adoption of Paxos’ USD and Gold-backed tokens in DeFi. With the proof of reserve and price available on-chain, our regulated assets will become more accessible for DeFi users.”

Currently, USDT and USDC have a lion’s share in the stablecoin utility in the DeFi space. Also, only MakerDAO offers PAX as a collateral type. The new partnership will let more DeFi projects to use the PAX stablecoin. Also, the Paxos Gold (PAXG) can bring the utility of real-world assets to the DeFi market.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

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Source: https://coingape.com/chainlink-link-registers-new-all-time-high-above-22-whale-activity-high/

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Blockchain

Incoming SEC Chief: Fate of XRP Could Have Wider Impact on Crypto Industry

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Gary Gensler, widely expected to be the next chairman of the U.S. Securities and Exchange Commission, believes Ripple’s legal battle with the SEC could have a wide-reaching impact on the crypto industry.

In an interview back in 2018, Gensler said he believes other crypto projects will likely be directly impacted by the case – regardless of the outcome.

“Let me say this, if [the courts] decide that they’re not securities, I think that too probably ends up in court. And the reason is because somebody else will say, ‘Why are they getting out of regulation and I’m not?’

Gensler himself has consistently argued that he believes XRP is a noncompliant security.

“Ripple the company is exchanging XRP for something of value, and they’re using it right now – they sell it every month, it’s in a lockup, there’s an escrow, and they sell XRP every month. Ripple the company initially did the genesis block back in 2013 but kept 80% of the tokens.”

Multiple news reports indicate President-elect Joe Biden will pick Gensler, the former chairman of the Commodity Futures Trading Commission, to lead the regulatory agency.

Ripple owns more than half of the total supply of XRP. In December of 2017, the startup pledged not to sell all of its tokens at once, locking up 55 billion XRP into a series of cryptographically secured escrow accounts.

The company then set up a schedule to release one billion XRP each month, sell a portion to fund its operations and invest in startups, and return the rest back into escrow.

The SEC now alleges Ripple illegally sold XRP as an unregistered security upon its launch, and maintains that the digital asset is a security to this day. A pretrial hearing on the case is set for next month.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong

Source: https://dailyhodl.com/2021/01/15/incoming-sec-chief-fate-of-xrp-could-have-wider-impact-on-crypto-industry/

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Blockchain

The Latest Example of Crypto Crime Involves Some Unlikely “Fishermen”

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Crypto crime cannot, should not, and must not be tolerated. This is the newfound attitude that we’re seeing as of late as the digital currency industry becomes more mainstream and legitimate. Unfortunately, with the rise of bitcoin and so many other cryptocurrencies in recent months, it appears that many individuals out there are taking chances and engaging in crypto crime so they can garner assets that don’t naturally belong to them.

Crypto Crime Continues Despite Many Efforts to Stop It

The most recent case of crypto crime involves a set of darknet drug dealers. It is estimated that these individuals possessed as many as 392 bitcoin units, which are valued at around $16 million at the time of writing. A federal judge had put out a warrant that called for their immediate arrest, and at press time, it has been reported that the individuals were arrested.

The crypto crime in this case involves money laundering, which the individuals in question have been charged with. While the drug dealers held most of their money in bitcoin and crypto, they funneled about $600,000 of it through improper channels to purchase a squid permit and a fishing boat. The purchases were designed to hide the origin of the money and to conceal any wrongdoing, as it is believed the men in question had no desire to suddenly become the world’s greatest squid fishermen.

As it stands, the boat, the permit and the money have all been forfeited to federal authorities, who are overseeing the case in a small region of Southern California. A court filing explains:

The defendants are in custody of the United States Marshals Service in the district, where they shall remain subject to this court’s jurisdiction during the pendency of this action.

While law enforcement officials have not gone into specific detail regarding how the digital funds were stored, they have hinted that cold storage tactics were utilized as a means of keeping the money offline to make it less traceable. The money was first seized back in early 2019 – a time when bitcoin was trading at the mid-$3,000 level.

Selling Drugs for BTC… Where Have We Seen That Before?

US attorneys claim that the money came through the selling of illegal drugs. In a statement, they say:

The defendant bitcoin was derived from the sales of illegal drugs, including fentanyl patches and opioids dispensed without prescription on the darknet between 2016 and 2019. The vendor began selling illegal prescription drugs on the darknet in approximately 2014 using multiple marketplaces including Dream, Silk Road, Alpha Bay and Wall Street Market, and from 2014 and thereafter, made approximately $250,000 worth of bitcoin each month from the illegal drug sales.

Investigators initially made several purchases from the criminals between 2017 and 2018 to garner evidence of the wrongdoing before eventually raiding the home they were inhabiting the following year.

Tags: bitcoin, crypto crime, us marshals Source: https://www.livebitcoinnews.com/the-latest-example-of-crypto-crime-involves-a-boat-and-a-squid-permit/

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