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What is Abra? | An Investment App on the Litecoin Network

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What is Abra?

Abra is a cryptocurrency investment platform that enables users to buy, sell, trade, and earn interest on a variety of cryptocurrencies. With as little as $5, users can earn around 10% interest on stablecoins and 4.5% interest on Bitcoin, compounded daily. 

Charlie Lee, the creator of Litecoin, has long teased a “huge unexpected surprise” for Litecoin. The surprise has arrived in the form of a new app from Abra. The app allows people to invest in 20 cryptocurrencies and 50 fiat currencies through the use of Bitcoin and Litecoin smart contracts. Not only can you invest in the 70 different assets, but trading between them is feeless and nearly instant.

How does it work?

Here’s an example of how to use Abra. Imagine you deposit $1000 of LTC into the app and want to trade for some exposure to Stellar’s price at $0.25. This creates a transaction on the Litecoin network that requires multiple signatures, like that of a smart contract. You sign the first half of the transaction to Abra and lock up your LTC at the trading price. If Stellar doubles in price relative to LTC, you would now have double the LTC. Then, you can have Abra sign the second half of the transaction. This would unlock your LTC and send your profit, resulting in $2000 of LTC in your wallet.

Abra App

At no point in this process would you ever own any Stellar coins. It would not be possible to send Stellar from Abra to a Stellar wallet. You are simply providing yourself market exposure to the price changes of altcoins. Abra creates a synthetic currency that follows the price of Stellar, but you are really engaged in Litecoin the whole time. You can invest in 70 different currencies, but never actually own them. You would own synthetic currencies that follow their price via smart contracts on the Litecoin blockchain. “In this way, Abra enables you to invest in multiple cryptocurrencies without creating a separate wallet, managing separate keys, or figuring out how to buy cryptos on an exchange.”

Synthetic Currencies

Liquidity of synthetic currencies won’t be a problem. Abra has successfully run these multi-sig contracts to “manage fiat, Bitcoin, and ether counterparty risk for over a year now with no service interruptions.” You can always trade for Bitcoin or Litecoin and send those coins to whatever wallet you like. In the US, you can also liquidate to fiat currency and send money to your bank account.

Abra can guarantee these smart contracts to their users by hedging their users’ positions. To hedge your trading positions, Abra performs “a combination of buying and selling cryptocurrencies with different exchange partners.” Their hedging provides no risk to the users or Abra. Their profit comes not from hedging but on the difference in price when you perform your trades.

Building on the Litecoin Network

Up until recently, Abra created smart contracts related to synthetic currencies on the Bitcoin network. However, they now plan on using the Litecoin blockchain for the majority of transactions.

“Abra has chosen Litecoin as the primary asset class for our investment platform although we now have the ability to move users between Bitcoin and Litecoin contracts. We chose Litecoin after a long and thorough research process to determine the asset class that met our criterion: secure, safe, scalable on-chain and off-chain, low mining fees, and preferably with adherence to the published Bitcoin core roadmap.”

Abra determined the future of their business can rely entirely upon the Litecoin network. Unlike other coins, Litecoin is free of hard fork drama, network outages, and spikes in transaction fees.

Abra believes that “Bitcoin will always be slightly more secure than Litecoin due mainly to its smaller block size – many refer to Litecoin as digital silver vs Bitcoin’s digital gold. But this small security tradeoff means lower mining fees and more on chain scaling for our users. We believe that Litecoin is the best choice today for these contracts.

Not only are Litecoin’s fees lower than Bitcoin’s, but the latest Litecoin Core update lowers fees even further. Average transaction costs could potentially be less than 1 cent.

What does this mean for Litecoin?

Abra dramatically reduces the complexity of investing in multiple cryptocurrencies. Users outside of the US interested in the investment platform can get started by first obtaining Litecoin. If Abra is able to attract a significant amount of users, this could drive demand for Litecoin. On the supply side, the numerous smart contracts on Abra will lock Litecoin away reducing the circulating supply of LTC. Finally, Abra’s choice adds credibility to Litecoin. Out of all the competitors such as Ripple, Ethereum, or Bitcoin Cash, Abra’s research showed Litecoin to be the best option.

How to use Abra?

To get started, first download the app here and write down your private keys. Abra is a non-custodial wallet so you have access to your own funds at all times.

Then using an American or Philippines bank account, American Express card, Bitcoin, Litecoin, or Ethereum, start funding your wallet. Once you add funds to your Abra wallet, you are ready to invest in any of the 20 available cryptocurrencies.

Final Thoughts

Charlie’s ‘big surprise’ might have been somewhat confusing at first, but there is no doubt Abra is nothing but good news for the future of Litecoin and its applications. Most coins are still looking to be added to new exchanges. In the case of Abra, the new exchange is added to Litecoin.

Source: https://coincentral.com/what-is-abra/

Blockchain

Millenials Prefer Bitcoin Over Gold, But it it Still Extremely Unequal, Study Finds

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A recent study revealed that Bitcoin and the rest of the cryptocurrencies no longer have the bad reputation that haunted them in the past. In fact, it seems that as the years go by, the preference towards digital tokens is beginning to overtake historically favored assets such as gold and silver.

SimpleMoneyLife —a site focused on personal finance— published a research compiling information from a lot of notable sources —and providing their own insights and findings too. The results are interesting and show that there is still a lot to work on even though the ecosystem has grown a lot.

The research cited a study by deVere Group revealing that 67% of millennials believe Bitcoin is a superior safe-haven asset to gold. This narrative is increasingly gaining traction in the world of cryptocurrencies and traditional finance.

Cryptopotato recently reported that the CEO of Skybridge Capital named Bitcoin as a store of value comparable to gold, with the Bank of Singapore also making a case for this thesis.

Bitcoion vs Gold

SimpleMoneyLife claims that even as a scarce commodity, gold loses out to bitcoin in terms of rarity:

Unlike gold, we know exactly how much Bitcoin is currently in circulation and how much will be in 2050. Bitcoin is better at being scarce than gold.

The study also assures that the Blockchain technology market cap could exceed $40 Billion by 2025. Analysts say that this type of technology could influence how various industries currently do business and develop their activities. Some of the areas that will benefit the most from blockchain technologies are: Supply Chain Management, Secure Elections, Healthcare, Smart Contracts, Keeping Verified Records, Banking, and the Internet of Things (IoT).

Analysts also highlighted that the United States is starting to take a fresh look at blockchain technologies, adding that the country could begin investing close to $4.2 billion on blockchain solutions soon.

The Crypto Twitter community is also very active. SimpleMoneyLife explained that, on average, cryptocurrency enthusiasts send more than 70,000 tweets about Bitcoin every day. They did not share data on activity around other altcoins with a large social media presence such as Chainlink, Ethereum, XRP, Tron, or the new DeFi coins.

The Study Shows an Extremely Unequal Bitcoin Ecosystem

SimpleMoneyLife also highlighted some findings of the inequality of the Bitcoin ecosystem. As much as algorithmically Bitcoin has no preferences, socially, it does.

First, the Bitcoin ecosystem is male-dominated. The compilation notes that UBS says 85.77% of Males are Engaged in the Bitcoin Community Compared to 14.23% of Females.

Want to rdig deeper into the stereotypes? Bitcoin appears to be 80% dominated by white males. Hispanics and black respondents follow with 66% and 61%,  of the rest respectively.

In terms of mining, China controls 65% of the network’s total power. Simultaneously, the rest is distributed around the world, with the United States far behind in first place with a mere 7.24% of mining power.

And in terms of wealth distribution, Bitcoin is extremely unequal, with just 2% of wallets controlling more than 95% of total Bitcoin wealth and the next 100 wallets dominating 13% of the remaining total.

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Source: https://cryptopotato.com/millenials-prefer-bitcoin-over-gold-study-simplemoneylife/

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TA: Ethereum Trims Gains, Why ETH Could Find Strong Support Near $1,275

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Ethereum started a downside correction after trading to a new all-time high at $1,480 against the US Dollar. ETH price is currently approaching the $1,300 and $1,275 support levels.

  • Ethereum started a fresh downside correction from the $1,480 resistance zone.
  • The price is down around 10%, and it is trading close to the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $1,385 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to find a strong buying interest near the $1,275 and $1,280 support levels.

Ethereum Price is Approaching a Major Support

After a strong increase above $1,400, Ethereum failed to test the $1,500 resistance zone. A new all-time high was formed near $1,480 before the price started a fresh decline.

There was a clear break below the $1,400 and $1,380 support levels. More importantly, there was a break below a major bullish trend line with support near $1,385 on the hourly chart of ETH/USD. The pair broke the $1,350 support level to move into a short-term bearish zone.

A low is formed near $1,292 and ether is currently attempting a fresh increase. It broke the 23.6% Fib retracement level of the recent decline from the $1,478 swing high to $1,292 low.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, there is a major resistance forming near the $1,365 level. It is close to the 50% Fib retracement level of the recent decline from the $1,478 swing high to $1,292 low. There is also a connecting bearish trend line forming with resistance near $1,385.

Ether price is approaching a couple of important supports near $1,300 and $1,285. The main support is forming near the $1,275 level, below which there is a risk of a larger decline in the coming sessions.

Dips Supported in ETH?

Ethereum is currently down around 10%, and it is trading close to the 100 hourly simple moving average. To start a fresh increase, it must gain bullish momentum above the $1,365 and $1,385 resistance levels.

A successful close above the trend line resistance and $1,385 could set the pace for a fresh increase. The next major resistance is near the $1,450 and $1,480 levels.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently well below the 50 level.

Major Support Level – $1,275

Major Resistance Level – $1,380

Source: https://www.newsbtc.com/analysis/eth/ethereum-eth-could-find-strong-support-near-1275/

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Blockchain

Kraken Daily Market Report for January 25 2021

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Overview


  • Total spot trading volume at $1.6 billion, close to the 30-day average of $1.65 billion.
  • Total futures notional at $612.2 million.
  • The top 5 traded coins were, respectively, Bitcoin, Ethereum, Tether, Polkadot, and Chainlink.
  • While most coins were down, strong returns from Keep (+9.0%) and Icon (+7.2%).

January 25, 2021 
 $1603.8M traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$32302. 
↑0.07% 
$653.4M
ETH 
$1320.8 
↓5.2% 
$642.8M
USDT 
$1.0000 
↓0.1% 
$149.4M
DOT 
$17.241 
↓4.2% 
$54.6M
LINK 
$23.501 
↓5.4% 
$38.6M
USDC 
$0.9999 
↑0.0% 
$27.8M
ADA 
$0.3436 
↓3.0% 
$21.2M
LTC 
$137.24 
↓2.7% 
$17.4M
XRP 
$0.2678 
↓2.1% 
$14.4M
UNI 
$11.352 
↓5.6% 
$10.4M
BCH 
$433.22 
↓1.5% 
$9.21M
AAVE 
$249.26 
↓6.7% 
$8.07M
XTZ 
$2.9227 
↓4.0% 
$5.88M
XLM 
$0.2614 
↓3.7% 
$5.26M
SNX 
$15.519 
↓12% 
$4.88M
ALGO 
$0.5579 
↓0.9% 
$4.48M
XMR 
$137.44 
↓0.5% 
$4.18M
CRV 
$2.0099 
↓11% 
$3.4M
ICX 
$0.8134 
↑7.2% 
$3.17M
TRX 
$0.0295 
↓1.6% 
$3.07M
YFI 
$29369. 
↓8.9% 
$2.95M
DAI 
$1.0001 
↓0.18% 
$2.9M
GRT 
$0.5304 
↓4.5% 
$2.85M
FIL 
$22.429 
↓1.2% 
$2.51M
ZEC 
$88.030 
↓2.3% 
$2.32M
KSM 
$99.319 
↓4.5% 
$2.24M
COMP 
$213.27 
↓15% 
$2.2M
ATOM 
$7.7592 
↓6.0% 
$2.11M
EOS 
$2.6516 
↓2.4% 
$2.03M
WAVES 
$6.7022 
↓4.3% 
$1.72M
NANO 
$3.1847 
↓5.7% 
$1.65M
BAT 
$0.3018 
↓5.4% 
$1.6M
OMG 
$3.5432 
↓1.3% 
$1.54M
DASH 
$105.09 
↓1.1% 
$1.54M
KAVA 
$2.3747 
↓8.2% 
$1.39M
KEEP 
$0.3268 
↑9.0% 
$1.28M
QTUM 
$3.2947 
↓7.4% 
$1.26M
OXT 
$0.2944 
↓0.27% 
$1.21M
MANA 
$0.1633 
↓4.9% 
$999K
ETC 
$7.4950 
↓2.1% 
$810K
XDG 
$0.0083 
↓4.3% 
$647K
SC 
$0.0045 
↓3.1% 
$527K
KNC 
$1.3233 
↓4.4% 
$516K
MLN 
$38.473 
↓3.3% 
$463K
GNO 
$115.57 
↓4.3% 
$450K
BAL 
$21.029 
↓8.8% 
$405K
LSK 
$1.3277 
↓2.2% 
$306K
PAXG 
$1863.2 
↓0.16% 
$284K
REP 
$20.570 
↓4.0% 
$247K
ANT 
$3.8759 
↓9.7% 
$231K
STORJ 
$0.3888 
↓5.5% 
$117K
REPV2 
$19.286 
↓2.4% 
$48.1K
TBTC 
$34102. 
↑1.9% 
$46.9K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (January 25 2021)



Figure 2: Mid-size trading assets: (measured in USD) (January 25 2021)



Figure 3: Smallest trading assets: (measured in USD) (January 25 2021)



#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (January 25 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (January 25 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (January 25 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (January 25 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/7576/kraken-daily-market-report-for-january-25-2021/

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