Tether continues to lose market dominance

Tether may currently be stable and may have seen its value return to be even with the US dollar, but this may not last long. The stablecoin held 94% of the stablecoin market at the beginning of 2018 – with only two other stablecoin competitors – and continues to lose ground. Now with eight serious stablecoins in the market, Tether’s market dominance lies at only 74% and could fall even further.

It seems like everyone wants to launch a stablecoin these days. There is the USDCoin from Circle, Paxos, TrueUSD and even Gemini Dollars. Even the Huobi exchange has gotten in on the fun, launching its HUSD stablecoin. On the surface, they appear to be solid as they’re backed by physical assets such as dollars or gold, but we have already witnessed how easily it is to see a stablecoin come unglued. Not too long ago, Tether saw its price break free from the US dollar, falling at one point to $94.

This past October, the co-founder of CoinCorner, Danny Scott, showed how easy it was for the stablecoins to not hold their value. He said at the time, “This is because they are openly traded on exchanges based on the supply and demand, meaning their price can fluctuate if people are willing to pay less or more for the currency. For example, GUSD (Gemini dollar) was pegged at $1 and actually hit $1.18. Similarly, USDT (Tether) which is pegged at $1 has fluctuated over time and is currently trading at $0.96. So do we think stablecoins are here to stay? Only time will tell, but for now we are not committing to them.”

Tether has had to deal with a series of issues that may have contributed to its decline among stablecoins. It has repeatedly refused to release audits of its holdings, stating that it would be too difficult (even though other stablecoins readily acknowledge that they can provide the data). Its new banking partner, Deltec out of Brazil, is facing an investigation for its possible involvement in a money-laundering scheme. There have also been concerns raised that the stablecoin was used to manipulate Bitcoin Core (BTC) prices last year. 

The case for stablecoins is tenuous, at best. While all cryptocurrency options are still young and the industry needs to be developed, there isn’t much call for an option that can both show volatility on its own, as well as on the asset which backs it.

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Bitcoin SV continues to rise in the ranks

Markets are down all across the globe. Wall Street has seen significant declines in its prices, futures trading was temporarily suspended and the general sentiment has been somewhat bleak. According to CoinMarketCap, even Bitcoin Core (BTC) is down, dropping 2.81% in the past 24 hours. In fact, all of the top five cryptocurrencies have seen declines of as much as 13%. In all of the chaos, though, there is a beacon that is shining bright. As of this writing, Bitcoin SV (BSV) has climbed 24.80%.

BSV now sits in the number five spot in the cryptocurrency rankings by market cap. Its current price sits at $110.94 and doesn’t show any signs of slowing down. This makes BSV more valuable than Ether, which is trading at just $97.57. Bitcoin Cash (BCH), which includes the controversial Bitcoin ABC version of BCH following the hard fork earlier this month, has dropped by 18.32% in the same period and now sits in seventh place by market cap – below Tether.

One of the reasons BSV is gaining ground is because of miners. They have remained loyal to BSV and their loyalty is beginning to show signs of paying off. It has been a difficult road, but one that has been well worth it in order to continue to develop the only cryptocurrency that follows the original definition of what a digital currency should be.

BSV has seen increases of almost 40% over the past week. While it’s difficult to determine exactly why it continues to climb, there are educated conclusions that can be made. BCH was running solid when it was still being rightfully viewed as the original Bitcoin as defined by Satoshi. As soon as chatter began that there were discrepancies in the direction the blockchain would take, the wobbling began. That wobbling continued through the hard fork, leading to the unprecedented drops seen in the price of BCH.

BSV is moving forward with a model that will ensure that Bitcoin lives on. This is being recognized by crypto enthusiasts who are beginning to understand that BSV and its supporters were right all along. Of course, a lawsuit against everything Bitcoin ABC stood for doesn’t help BCH’s cause, either.

There’s no way to know whether or not this bullish trend will continue. However, things are certainly looking up for BSV.

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CMC Markets adds Bitcoin BCH support

A financial derivatives brokerage firm out of London, CMC Markets, has allowed traders to take positions against Bitcoin Core (BTC) and Ethereum (ETH) since this past July. The firm has now announced that it is giving its 60,000 customers more options and will provide support for both Bitcoin BCH, Ripple (XRP) and Litecoin (LTC), all of which can be paired against the U.S. dollar.

The firm’s group commercial director, David Fineberg, stated in a release about the offerings, “Since the successful launch of our cryptocurrency offering in March, and subsequent extension to retail clients in July, our clients have expressed interest in extending their trading options beyond bitcoin and Ethereum. We are pleased to offer them the chance to take a position on bitcoin cash, litecoin and ripple, three altcoins which continue to generate much speculation among traders.”

More brokerages have been looking for ways to increase crypto-based products as day traders move away from foreign exchange (Forex), contracts for difference (CFD) and spread betting in traditional exchanges. Offering the same types of products for the cryptocurrency markets has been seen as the possible solution, but derivatives have come under fire in the UK, with regulators contemplating a complete ban on the products. However, CMC doesn’t view this as a deterrent in a market that continues to look for more investment options in the crypto space.

Fineberg added, “Spread bets and CFDs offer a way to trade on cryptocurrencies as clients can take a position on market movements without owning the asset. By trading with an established provider, funds can be deposited and withdrawn with ease, avoiding the risks of purchasing cryptocurrencies directly through an exchange. However, like all other financial instruments we offer, we always recommend clients understand the risks and conduct thorough research before trading.”

The brokerage was a little slow to enter the cryptocurrency space. It only did so after several other brokerages, notably Admiral Markets, IG Group Holdings Plc,. Gain Capital’s City Index and Plus500 Ltd., had entered the market. However, the continued adoption of cryptocurrencies by traditional financial institutions shows how digital currency is grabbing hold and becoming a legitimate alternative to fiat options.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Crypto exchange offers stock market trading with crypto as collateral

Cryptocurrency holders can now put their assets to good use, instead of waiting for the next big bull run. The Panxora cryptocurrency exchange has introduced a new feature that will allow its users to invest in traditional stock markets using crypto. However, instead of having to sell the assets, Panxora will allow them to be used strictly as collateral. This is an important distinction, since users won’t be forced to give up their holdings.

According to an announcement on the company’s website, users can trade in live stocks, fiat currencies, exchange-traded funds and other asset classes. It indicates that it will provide trading opportunities for more than 500 stocks, including Apple, Adidas, EasyJet, Deutsche Borse and Lenovo, that are available in the U.S., the UK, Germany and Hong Kong.

Trading is possible through more than 12 cryptocurrencies, including Bitcoin BCH, Bitcoin Core (BTC), Ether (ETH), Ether Classic (ETH) or Litecoin (LTC). All earnings are paid directly into the user’s account through BTC. The exchange will allow users to leverage up to five times the amount of their holdings to invest in the stock market. Additionally, crypto assets can be traded at a rate of one-to-one.

The concept was created to help crypto holders earn profits on their assets. Says the company, “[Panxora] gives crypto owners a better option than simply sitting on their assets. As with any other capital, investors should have the opportunity to use their cryptocurrency to try to generate a return. Panxora delivers on that promise, giving cryptocurrency owners direct access to currency, stock and a variety of other asset classes through ETF trading without having to trade out of cryptocurrency first.”

The company’s CEO, Gavin Smith, added, “Right now, Panxora is an exchange that gives cryptocurrency holders direct access to various currency and stock markets. But that’s just the first step in our ultimate goal to dissolve the distinction between fiat and cryptocurrencies when it comes to financial opportunities. Looking ahead, we will continue to bring ever more choice within reach of crypto asset owners. Everything we do, in every field, is aimed at that goal.”

Panxora was previously known as First Global Credit. It only changed its name this month and has been in the cryptocurrency industry for over four years. It has offices in London and Hong Kong and has previously offered futures trading on the London Stock Exchange, as well as other products that were designed to help close the gap between fiat and crypto.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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