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How a Small German Firm Brought FAANG Stocks to Crypto

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How a Small German Firm Brought FAANG Stocks to Crypto | Crypto Briefing


















A 19-year-old asset management firm in Germany is responsible for the latest wave of American tech stocks entering crypto. And they’re just getting started. 


Key Takeaways

  • Bittrex and FTX exchange recently began listing popular American equities on their platform thanks to a “passportable” licensing software.
  • Tokenizing Tesla, Facebook, Google, and Apple stocks opens up wholly new markets much like the arrival of CFD brokers in traditional finance.
  • CM-Equity’s software lays the groundwork for future innovations such as crypto-equity index products as well as unique trading pairs.

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Cryptocurrency markets have revealed the power of global, never-sleep financial markets. The low barrier to entry has also boosted digital assets’ mass appeal. A small German company is now bringing these advantages to Google, Tesla, and other popular American stocks. 

And this time around, U.S. citizens will be left out of the innovation.

When Google Stocks Came to Crypto

One of the breakout stories of 2020 has been the arrival of traditional equities in crypto. 

Ushered in by FTX Exchange and Bittrex, traders on both platforms can now buy and sell Tesla, Amazon, Google, and many other popular American equities. 

The integrations also present the final piece to the financial puzzle. 

Sample of stock listings on FTX Exchange. Source: FTX Exchange
Sample of stock listings on FTX Exchange. Source: FTX Exchange

Proponents of cryptocurrencies and blockchain technology have long championed the technology as one that would “bank the underbanked.” 

The slogan refers to the low barrier to entry and global nature of buying, selling, and HODLing digital assets like Bitcoin. Users only needed an Internet connection to get started. 

This simple prerequisite stands in stark contrast to the cumbersome onboarding process for the average brokerage firm. This also assumes the user is U.S.-based. Crypto, in many ways, has become shorthand for an emerging, distinctly inclusive financial market. 

Still, these easy-to-access markets have been limited to cryptocurrencies.

By including brand name stocks like Google and Amazon, FTX and Bittrex have finally closed the loop. But they didn’t do it alone. Both exchanges share a common ally that is helping bridge crypto to traditional finance. 

CM-Equity is a German-based securities bank, offering far more than a series of API integrations and a network of financial institutions. Indeed, the company’s greatest asset is its so-called “licensing roof.” 

One Regulated Platform to Rule Them All

“We essentially offer a ‘passportable’ license to any exchange so that they can operate in Europe,” said Patrick Gruhn, the chief legal officer for Digital Assets AG, the company that handles the tokenization process for CM-Equity and its clients. 

“It’s a white label solution that platforms can plug into the backend because crypto exchanges have a superior UI. There’s no need to change that,” Gruhn told Crypto Briefing. “CM-Equity lets them keep UI and adds a crucial regulatory layer to their services.” 

Instead of jumping through various legal hoops to offer financial services, CM-Equity provides a one-size-fits-all licensing regime. And due to current regulations in the European Union, this regime applies to all member states. 

What’s more, the tokens are backed 1:1 to the underlying Google, Tesla, Amazon, and other popular equities. Brandon Williams, Digital Asset AG’s corporate development lead, said that these tokens do far more than comparable Contract for Differences (CFDs) products. 

CFDs are cash-settled derivatives products, meaning the holder never has access to the underlying asset that the derivative represents.

“Someone buying these tokenized stocks can redeem them at any point and send the stocks directly to their brokerage account,” Williams said. 

It’s not possible to redeem fractional shares of these tokens, however. 

Similarly, anyone holding relevant stocks can have them tokenized at will via a manual process, creating a wholly interoperable market that merges crypto with equities. Put otherwise, CM-Equity has essentially improved the current CFD brokerage model and created completely new trading possibilities. 

CFD brokers take much more time to fund accounts for the same reasons that bank transfers still take three to five days to process transactions. After that, CM-Equity opens up new trading pairs like BTC: GOOGL, ETH: AMZN, and many other opportunities. 

“One of the more popular emerging trades that some traders are executing these days is BTC: Gold,” said Williams. “This pair becomes much easier to execute using tokenize stock solutions.”

The possibilities are myriad. Unfortunately, they’re only available to non-American citizens.

Avoiding Abra 2.0

By preventing U.S. citizens from using their services, CM-Equity completely sidesteps the same misfortunes as Abra. 

In July 2020, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission settled $300,000 in penalties with Abra “for offering and selling security-based swaps to retail investors without registration and for failing to transact those swaps on a registered national exchange.”

Anytime an exchange or crypto platform engages with American citizens, they immediately fall under the purview of relevant regulators. This was the case with Abra, but also derivatives exchange BitMEX

In avoiding the same fate, CM-Equity has effectively shut out Americans from the frontier of finance. The average U.S.-based trader may not have any issue with this, of course. Trading popular tech stocks has never posed a problem, after all. 

But following moves like this to their logical conclusions paint a sorry picture for the future of crypto in the United States. Or, rather, it paints a much brighter future for the rest of the world.

And based on their current positioning, CM-Equity will be at the forefront of the latter.

This news was brought to you by Phemex, our preferred Derivatives Partner.

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Source: https://cryptobriefing.com/german-firm-brought-google-tesla-stocks-crypto/

Blockchain

Elon Musk Agrees to Have the Bitcoin Talk With Jack Dorsey

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After laughing at Jack Dorsey’s proposition for a Bitcoin conference earlier, Elon Musk has actually agreed to a BTC conversation with the CEO of Twitter at the event.

  • As reported earlier, Elon Musk likes to have fun with the cryptocurrency community. Perhaps that’s why he initially laughed at Jack Dorsey’s most recent Bitcoin endeavor.
  • The CEO of Twitter announced plans to hold a designated BTC event aiming to “help protect and spread what makes bitcoin open development so perfect.”
  • After the initial laughter from Tesla’s CEO, though, Dorsey asked Musk to have a conversation at the event where the latter could share all of his “curiosities.”
  • Later on, Musk indeed agreed to have “THE talk” at the event, which should take place on the 21st of July this year.
  • Apart from Dorsey, some of the other popular names that will speak at the conference include the CEO and CIO of ARK Invest, Cathie Wood, and the CEO of Blockstream, Adam Back.
  • With this event, Twitter’s CEO continues to reaffirm his support for the primary cryptocurrency.
  • During the 2021 Bitcoin Conference in Miami, he called the asset the most important work of his lifetime. Furthermore, he said he would leave Twitter and Square if BTC needed him.
  • His personal Twitter account continues to display only one word – bitcoin. Additionally, he partnered with the legendary rapper Jay-Z to donate 500 BTC to fund developers working on the network.
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Source: https://cryptopotato.com/elon-musk-agrees-to-have-the-bitcoin-talk-with-jack-dorsey/

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Bitcoin Hash Rate Goes On Death Spiral Post China’s Crackdown On Miners

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The great Bitcoin miners migration is well underway. And the network’s total hash rate is showing it in a big way. Currently, the number of terahashes per second is at its lowest level in the last twelve months. That means that mining Bitcoin has not been easier in a whole year. Also, there’s less competition. So, it’s good news for all the other miners that are spread around the world. However, don’t expect it to last long.

Related Reading | How China Bitcoin FUD Is Lowering The Cost To Produce BTC

Tons and tons of mining equipment are currently traveling to their new homes. There are reports of a huge operation in Kazhakstan, a neighboring nation of China. There are also rumors of equipment and personnel already settling down in Texas. The US state is making a push to become a Bitcoin mining capital, and apparently, the efforts already bore fruit. 

Back in China, the crackdown is no longer a rumor. It’s a reality. CNBC reports:

China’s crackdown intensified over the weekend, with authorities in the hydropower-rich Chinese province of Sichuan ordering crypto miners to shut down operations.

According to reports, more than 90% of China’s bitcoin mining capacity is estimated to be closed. 

Some experts see this as a good thing. It’s estimated that China controlled between 60 and 70% of Bitcoin mining, and the future looks clearer with them out of the picture. The hash rate will suffer for a while, but there’ll be more decentralization. Also, the carbon-powered-energy consumption FUD will decrease. Even though China’s miners were mostly located in areas rich in renewable energy, Bitcoin critics had a hard time believing reports from that side of the world. 

Total Hash Rate (TH/s) of the Bitcoin network | Source: Blockchain.com

Another China Ban, A Reflection Of 2017

This is not the first time that the Chinese government’s cryptocurrency policy caused havoc on the market. In September 2017, they banned crypto exchanges altogether. Just before that, Bitcoinist reported:

While Chinese exchanges used to represent over 90% of Bitcoin’s trading volume, this changed completely with the intervention of the PBoC which led to the end of margin trading and zero-fee policies and to the temporary halt on withdrawals.

All of these changes contributed to China’s trading volume reduction, which saw its market share fall to 3-5% of the global trading volume.

So, historically, the Chinese government has shown no mercy in closing billion-dollar businesses by decree. It’s also worth noting that most of the banned cryptocurrency exchanges just closed their China offices and moved their operation to other countries. They continue working to this day and, for users not in China, the traumatic move didn’t affect their experience in the slightest. Bitcoinist reports again:

The clampdown led to a staggering drop in CNY trading — which comprised over 90 percent at its peak — as traders made an exodus to over-the-counter, peer-to-peer, and foreign exchanges. As a result, jurisdictions with friendlier laws experienced a boom in trading volume as the market flipped on its head

The current situation with the miners is a reflection of that. The mining business is in the process of flipping on its head. The hash rate will recover.

BTCUSD price chart for 06/25/2021 - TradingView

BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com

The Hash Rate Will Rise Again

In retrospect, we should’ve seen it coming. Only two months ago, following a suspicious blackout, NewsBTC reported:

According to the Beijing Economic and Information Bureau, there were concerns about the energy consumption related to these activities. PengPai quotes Yu Jianing, rotating Chairman of the Blockchain Special Committee of China, to claim that the country’s environmental requirements could lead to crypto mining being more “strictly regulated”. Jianing said this will be “inevitable”.

Related Reading | Bitcoin Mining In China To Usher Historic Moment, Will BTC Be Affected?

As for the possible reasons, Bitcoin Magazine’s Lucas Nuzzi cites the upcoming Digital Yuan CBDC. He also defuses the FUD by informing us, “Daily Hash Rate is, by its very design, a volatile metric that is not suitable to track lasting changes in the mining landscape.”

We should also take into consideration Nic Carter’s assertion that all of these things are happening while, “Bitcoin continues to maintain 100% uptime, is nothing short of a modern marvel.”

In Bitcoin, everything’s changing while everything stays the same. The hash rate will rise again.

Featured Image by OpenClipart-Vectors from Pixabay - Charts by TradingView and Blockchain.com

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Source: https://www.newsbtc.com/news/bitcoin/bitcoin-hash-rate-goes-on-death-spiral-post-chinas-crackdown-on-miners/

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SOLANAX Private Sale Is On For The Cross-Chain DEX

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[PRESS RELEASE – Please Read Disclaimer]

The cryptocurrency market has left people wondering about the long-term growth prospects and which cryptocurrency they should invest in. Solanax is an automated market maker (AMM) based on the Solana blockchain, which is set to be a game-changer in the cryptocurrency world.

The SolanaX Platform

After parsing through their team of professionals, whitepapers, their project plans, and unique platform capabilities, there is no doubt that once the platform is up and running in full swing, it will undoubtedly change the way people transact today with its simple interface for the public to trade at a record higher blockchain speed and lower gas fees.

  • There are no time-consuming processes or intermediaries.
  • It offers a very simple interface and lower gas fees while initiating the transactions.
  • Solanax increases blockchain speed and makes it more convenient to transact than its peers in the cryptocurrency market.
  • As Solanax is based on Solana’s Proof-of-History verification concept rather than a Proof-of-Work system (as that of Ethereum’s), it will enable users to leverage Solanax’s phenomenal transaction capabilities (Solanax to handle thousands of transactions in a second as compared to Ethereum’s 15).
  • The most crucial part is that while speeding up blockchain transactions and lowering gas prices, Solanax does not compromise on the security aspect.

The Ongoing Private Sale Of Solanax

Solana blockchain is substantially faster compared to its peers, and the ongoing private sale is an opportunity for crypto enthusiasts and investors to participate in this game-changer prospect.

The private sale is still ongoing until Friday, 25th June.

Total Supply: 80 000 000 SOLD Tokens

There will be 20 Million SOLD Tokens distributed before the CEX listing.

Private Sale: Total available token supply – 10,000,000 SOLD

Period: From 06/06/2021 to 25/06/2021

Token Price: $0.1 with a 3months vesting period

Token Price: $0.15 w/o vesting period

Initial Exchange Offering: Total available supply – 10,000,000 SOLD

Final Words

Solanax aims to revolutionize the DeFi exchange network and enhance efficiency levels to new highs. With DeFi gaining popularity, there is an urgent need for the industry to look beyond the older cryptocurrency platforms like Bitcoin and Ethereum. The sluggish transaction speed is one of the prime reasons for Solanax not preferring the Ethereum-like platforms. Besides, Solanax, with its high blockchain speed, simple interface, and low gas fees, is truly a game-changer for crypto aficionados, and Solanax’s Ongoing Private Sale presents the perfect investment opportunity for investors.

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Source: https://cryptopotato.com/solanax-private-sale-is-on-for-the-cross-chain-dex/

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