Tag Archives: Cryptocurrency

Theta Cryptocurrency Has Surged Far More than BTC

Theta Cryptocurrency Has Surged Far More than BTC

Bitcoin has been on fire lately, but there are other smaller currencies that are virtually on fire, one being Theta.

Theta Is Growing Like No Other Coin

The digital currency industry is full of small coins that very few people have heard of. One – called Theta – has jumped by more than 1,000 percent since reaching new lows in early March. The currency is leading a bullish wave that appears to be making its way through all corners of the cryptocurrency space. 1,000 percent is quite huge, especially when put in perspective against the bullish jumps incurred by other currencies. Bitcoin, for example, has shot up by only 120 percent since March, suggesting the younger, smaller altcoin has exuded more power in many ways.

The jump follows news that the coin’s creator, Theta Labs, has entered a partnership with search engine giant Google, which could be announced as early as today. Theta is widely referred to as a “decentralized streaming video protocol.” It’s partnership with Google will undoubtedly put it in line with YouTube, which Google owns. Theta is slated to offer its users the chance to provide bandwidth and computing resources to outside parties for digital rewards. No doubt the currency has been on a roll these past few months. Theta has also joined hands with Samsung Galaxy to bring Theta.tv to its mobile devices. Samsung announced that it would be adding the application to roughly 75 million devices, while many future phones will come with the app already programmed into them. Theta Labs co-founder and chief executive Mitch Liu commented on the partnership with Samsung,

explaining:

Our groundbreaking approach to streaming is a perfect fit for Samsung’s worldwide user base. It’s a huge step toward our goal of making Theta a global infrastructure for video content and data delivery.

Theta is joined by several altcoins on the bull train. One of the most recent assets to experience several jumps include OmiseGO, which has since surged by roughly 230 percent, nearly double that of bitcoin. The currency was added to Coinbase’s trading platform, allowing users to sell, buy and exchange the asset like they would Ethereum, bitcoin cash, or any other currency that’s available through the U.S.-based company. Coinbase has stated that it is constantly being asked by clients to add more coins to its growing roster of digital offerings.

Are Smaller Coins Trying to Distance Themselves?

Some analysts believe that the heavy jumps many of these smaller cryptocurrencies have exhibited over the past few months suggest they are trying hard to separate themselves from the market. Executives at Luno – a U.K.-based bitcoin and crypto trading platform – explained in a note

to clients:

The small caps index is now up more than 15 percent so far in May, while the other indexes are struggling to even be in the green this month.

Article Produced By
Nick Marinoff

https://www.livebitcoinnews.com/theta-cryptocurrency-has-surged-far-more-than-btc/

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Canadian Crypto Companies Now Provide Insurance on Digital Deposits

Canadian Crypto Companies Now Provide Insurance on Digital Deposits

Two bitcoin-based companies in Canada, Bitbuy and Knox, are working together to offer clients full insurance on all their deposits.

Knox and Bitbuy Join Hands Over Insurance

Lagging insurance protocols have brought the cryptocurrency space down for years. This could arguably be why so many institutional players and others have been reluctant to get involved in digital currency trading. While these assets are prone to volatility, the space has also been very vulnerable to theft and cyberattacks. Many times, large examples of theft make their way into the space, thereby resulting in millions of digital dollars lost forever. The bad thing about this isn’t just the fact that the money was taken. It’s that many exchanges, being decentralized and unrecognized by financially governing authorities, cannot and do not offer any form of insurance on the deposits made. Thus, whatever money is gone is usually gone for good. Bitbuy and Knox are looking to change that. Both companies met in 2018 at a Toronto conference. Adam Goldman – founder and president of Bitbuy –

explained in an interview:

Our two companies are strongly aligned on the direction of the industry, including consumer protection and regulatory advancements. Our partnership is the result of a collective commitment towards establishing a transparent framework for safekeeping client assets.

Knox is working with its respective insurance broker Marsh to provide both theft and technical insurance for any customer that happens to lose funds due to outside parties or forces. CEO Alex Daskalov is hoping that this maneuver will help to propel bitcoin and the cryptocurrency space deeper into mainstream territory, and he believes other companies will strive to follow in both Knox and Bitbuy’s footsteps.

He states:

It is difficult for a customer to engage technical due diligence on an exchange, and we have always believed that systems should be vetted by competent third parties so that customers have a ready source of safety signals. For that, we believe that Bitbuy succeeding in becoming the first exchange to hold bitcoin in a comprehensively insured setting is a major step up for both the Canadian and global exchange space.

Bitbuy and Knox are continuing a trend in the crypto space that is still relatively new. Very few crypto-delving companies offer insurance relating to digital assets, though there are some out there. Some of the names that come to mind include Chubb, XL Catlin, and Mitsui Sumitomo. They offer these services to customers seeking to store digital currency on associated changes.

Paving the Way for a Safer Future

Still, crypto coverage via insurance is not “the norm,” and Dean Skurka – head of finance and compliance at Bitbuy – is hoping this will change over time.

He says:

Industry standards and consensus best practices are integral while regulators evaluate their jurisdictional claim over our industry. Two Canadian companies coming together to help establish these standards represents a big step forward.

Article Produced By
Nick Marinoff

https://www.livebitcoinnews.com/bitbuy-and-knox-to-offer-insurance-coverage-on-crypto-deposits/

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How Do You Turn a Profit With Your Available Coins?

How Do You Turn a Profit With Your Available Coins?

 

Most importantly, you can earn money by saving your cryptocurrency in your online account.
The best part of this Locacoins service is that it is automated.

Earning on Savings

Since the services are automated, a huge number of users across the planet can access the services. The daily transactions exceed the reserves available by far. As a result, clients have a chance to transfer their funds using exchange operations. More people have trusted the service and utilized the functionality, which eases the exchange operations.

Expected Returns

You can expect to see amazing returns here. For example, an average of 5 to 6 exchanges per day is guaranteed by the service. Moreover, the average rate of commission used on exchanges is 1%. The best part is that Locacoins shares half its commission, giving the clients a chance to gain between 2% and 3% each day. You may join the rest of the people making money by deciding to join Locacoins services. You may send, receive, exchange, and store funds to increase your earnings and expand your cryptocurrency reserves.

Article Produced By
Bitcoin News

https://www.livebitcoinnews.com/how-do-you-turn-a-profit-with-your-available-coins/

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Could Visa’s Planned ‘Digital Fiat Currency’ Spark the Emergence of Crypto-Fiat Hybrids?

Could Visa’s Planned ‘Digital Fiat Currency’ Spark the Emergence of Crypto-Fiat Hybrids?

As the benefits of blockchain become increasingly apparent to central banks and institutions around the globe,

mainstream financial actors are looking at ways to merge their traditional practices with crypto technologies. Such was the case earlier this month when the payments giant Visa announced it had filed a patent for a new ‘digital fiat currency’ that would exploit the benefits of blockchain whilst still be backed by traditional fiat currencies, namely American dollars. According to Visa’s CEO, the hoped-for currency would benefit from faster transaction times, greater transparency, and volume control. At the same time, the currency would avoid cryptocurrency hazards such as volatility and lack of regulatory oversight by being backed by traditional fiat currencies.

Should Visa’s plan take off, it could very well represent a turning point in the future of money, offering a bridge between fiat and crypto that could benefit millions of users around the world. Such plans are likely to gather an increased sense of urgency in light of the ongoing COVID-19 financial crisis, which has sent currencies around the world into historic levels of volatility. One of the most notable financial developments in the recent crisis, has been the haemorrhaging value of emerging market fiat currencies, with the Mexican Peso, Brazilian Real, and South African Rand all losing more than 20% of their value against the dollar since February. As this comprehensive guide to Forex trading explains, the value of currency pairs on global trading markets is intensely vulnerable to global news events. As mounting fears of a protracted recession grew earlier in the year, emerging market currencies took a huge hit as investors piled into the ‘safe haven’ currency of the US dollar.

This, in turn, makes borrowing, commodity trading, and debt servicing more expensive for emerging economies, as all of these activities are typically done in dollars. The result, as we have seen, is a vicious cycle which depreciates the value of these currencies further. Compare and contrast this with the performance of cryptocurrencies since the onset of the current crisis. Heavy hitters such as bitcoin took an initial, albeit more modest hit to their value at first, before rebounding to the point where their price has stabilized to pre-crisis levels. This development highlights how the structure and nature of cryptocurrencies can prove beneficial and preferable to fiat in times of crisis, something that Visa will likely attempt to capitalize on with their planned hybrid currency.

For one, the use of currency attached to a digital blockchain ledger has been proven to increase financial participation in emerging markets, ensuring easier access to the cash and credit that people need in times of turmoil. In addition, the instant transfer capabilities of digital currencies could help developing economies overcome the hurdles associated with limited access to much-needed, stable American dollars. With a hybrid e-currency that is pegged to the USD, emerging economies could avoid the ‘vicious cycle’ that compounds economic woes during global crises.Of course, whether such options will materialize depends on how successful initiatives like Visa’s turn out to be. Watch this space to find out. 

Article Produced By
Coinpedia Staff

This is an official account of Coinpedia.org, used to publish guest posts including Press releases and other related news. It is also used to update information on wallet, tools and DEX.

https://coinpedia.org/news/visas-planned-digital-fiat-currency/

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Blockchain in China could be explored in diverse fields as many sense the necessity

Blockchain in China could be explored in diverse fields as many sense the necessity

The Chinese People’s Political Consultative Conference(CPPCC),

the advisory body of the Republic of China, recently emphasized the need for the adoption of the blockchain technology in various sectors in the country. China is one of the countries to be recognized as one of the fast countries to adopt blockchain technology and implement it in various streams.

Need for Blockchain in Fresh Areas

The potential of the blockchain went recognised and the possible applications in all sectors were been analysed. The unique features of the blockchain attract various use cases. The representative of the National People’s Congress, Qian Fangli, stated the possible use of blockchain in risk control management. He said, “Make full use of blockchain to establish an intelligent risk control model.” The member of CPPCC, Cheng Jing also triggered the need of the blockchain in the manufacturing platforms so that they could be upgraded and transformed. The Jiangsu province of China which is known for its intelligent transport system has formulated 8 special action plans around blockchain including other contents.

New Blockchain uses in the Financial Sector

The financial sector is one of the main recipients of the blockchain technology and every day a new way of applying blockchain emerges. Chengdu University of Electronic Technology and Chengdu Jiaozi Financial Holding Group established Jiaozi Financial Holding Blockchain Research Institue.On the other hand, Intel and Ant Blockchain joined hands to use the blockchain to provide credit enhancement for leasing companies. One of the city, Suzhou is the first country to record a ‘blockchain + notary’ administrative law enforcement process record mode.

‘Promote Blockchain in Healthcare’ – National People’s Congress

The representative of National People’s Congress, Zhou Songbo emphasising the importance of blockchain adaption in healthcare sector said, “Promote the integrated application of emerging technologies such as blockchain in the medical system.” Blockchain can also be used to enable all the doctors to achieve identity authentication as specified by CPPCC committee member, Fang Laiying. Other developments in the blockchain space in China include two new moves,

  • Ningbo, a major port and industrial hub in east China’s Zhejiang province issued “Ningbo City Three-Year Action Plan to Accelerate the Cultivation and Innovative Application of the Blockchain Industry(2020 – 2022)”
  • The Blockchain Professional Committee of Hebei Information Industry and Information Technology Association was established.

Wrapping it Up!

Blockchain no doubt has the potential to transform any sector with its unique features. Sooner the features are analysed and adapted into the possible sectors, the more would be the development pace in the country. China too has recognized the blockchain’s power and wish to implement in all possible sectors and strengthen the economy.

Article Produced By
Qadir AK

Qadir Ak – Co-founder of Coinpedia Blog – His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

https://coinpedia.org/news/blockchain-in-china-could-be-explored/

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Digital Asset Bitgesell Provides the Perfect Ecosystem to Become Digital Gold

Digital Asset Bitgesell Provides the Perfect Ecosystem to Become Digital Gold

Bitcoin Press Release: Emerging digital asset Bitgesell has developed a practical ecosystem,

and long-term solution for the digital gold debate. The project overcomes issues plagued by Bitcoin to make it an extremely attractive proposition to holders, miners, and businesses

18th May 2020, Amsterdam, Netherlands – Digital asset and cryptocurrency Bitgesell is a new project geared towards practical application, and offers a more attractive proposition to cryptocurrency miners and holders, than any similar alternatives. The Bitgesell ecosystem has been designed to ensure that it is practical, and suitable as a long-term digital investment option.

Why Bitcoin is Not a True Digital Gold

Bitcoin continues to be the foremost leader in the digital currency market, and has always defined what cryptocurrencies are. However, it is faced by a number of issues that have not been conclusively addressed:

  • Excessive Computational Power: Distributed nodes and miners keep any blockchain secure by ensuring that there is never enough computational power in a single control. Bitcoin has surpassed this level long ago. Today, only a fraction of the computer power is enough to secure the network.
  • Low Commissions in Future: In the future, when all of Bitcoin is mined, miners will rely on transaction fee. A little reward will be sufficient to keep miners in profit. However, the segwit based lightning network can also lead to miners moving away from Bitcoin as the transaction earnings can become so low, it would not be practical to keep working on the network.
  • Slower Scarcity : Bitcoin currently halves its block rewards nearly every four years. This scarcity and the level of new BTC mined means that block reward will reach zero roughly in 2140. For the true rise in value of Bitcoin, holders still have to wait 120 years.

Bitgesell Head Developer, Emma Wu explains one of the benefits that Bitgesell offers over Bitcoin: 

“Bitgesell can be perceived as a future of bitcoin, because of its smaller block size, how segwit extension would be developing (lightning network) and due to halving occurring each year, only after 2-3 years we will witness the future of bitcoin, not having to wait for 11 years.”

Bitgesell: The Better Bitcoin

The next stage in the evolution of Bitcoin, Bitgesell is the right step towards a digital gold model. A digital asset that is geared towards holding, it is a precisely calculated ecosystem that is predictable and reasonable.

  • Higher Transaction Cost: Setting a higher limit for transaction cost serves dual purpose of ensuring that only large amounts of coins are transacted, giving incentive for people to hold and increasing the demand while lowering he supply in the market, and ensuring that after all coins have been mined, miners are still in a profitable position, making the network secure.
  • 90% Burn: Coins in circulation are reduced at a fast paced level through burning 90% of transaction fee. This means that Bitgesell will see an increased value of remaining coins as the supply is lowered.
  • Halving Each Year: Where Bitcoin takes on an average 4 years, Bitgesell will half every year, further reducing the coins available and achieving zero emissions in a span of a few years.
  • Fully Segwit Supported: Bitgesell is a network that has fully implemented the segwit protocol. The network is fast enough to withstand any kind of load and transactions will be confirmed at lightning speeds.

The BGL coin powers the Bitgesell as a medium of holding and exchange. Like its Bitcoin counterpart, there will be 21,000,000 BLG ever produced. With a block weight of less than 400,000 bytes, it is 10 times smaller than Bitcoin, making it lighter and faster.

Article Produced By
Bitcoin Blast,
Bitcoin Press Release

https://bitcoinprbuzz.com/digital-asset-bitgesell-provides-the-perfect-ecosystem-to-become-digital-gold/

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Ethereum Soars Over 125% Since March: What to Expect Now?

Ethereum Soars Over 125% Since March: What to Expect Now?

Almost all markets across the world have been in turmoil owing to the economic uncertainties

brought about by the coronavirus pandemic, and in that regard, the crypto market has been no different. However, one of the major cryptocurrencies to have made a remarkable recovery since hitting its lowest levels in March is Ethereum (ETH), and it is important to take a closer look at it. In this regard, it should be noted that ETH is the second-biggest cryptocurrency in the world, and its recovery might have an impact on the wider crypto market.

Major Triggers

The recovery has been quite remarkable, and it is only natural that investors are taking note of Ethereum since it rose 125% from its lowest levels. In a new development, it has now emerged that Grayscale Investments has acquired as much as half of all the ETH tokens that had been mined this year. The actions of Grayscale could well be one of the major reasons behind the rally enjoyed by the cryptocurrency this year. According to a post that was published on Reddit, Grayscale now owns 1.1% of all the ETH tokens that are currently in circulation. It is a significant development for ETH and marks the entry of an entity that looks after the interests of institutional investors. Grayscale is currently focused on a total of 10 cryptocurrency-related investment products and primarily caters to the interests of institutional investors.

ETH is in Focus Ahead of Ethereum 2.0: What to E#xpect?

At this point, Grayscale has investments worth $2.7 billion in its books, and out of that, the Ethereum Trust consists of investments to the tune of $234.7 million. It needs to be kept in mind that over the years, it has been said that the flow of institutional money is going to be the main trigger behind the growth of the crypto market, and it seems like perhaps this is finally happening. It remains to be seen how this latest development affects the attitudes of other investors with regards to Ethereum.

Article Produced By
Ankit Singhania

Based in India, Ankit is a financial content writer and stock market analyst. He has worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI. Currently, he serves as a financial consultant and technical analyst at Tradersinsights.com.

https://cryptocurrencynews.com/ethereum-soars-expectations-04-28-20/

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Bitcoin Soars Above $9K Mark with Strong Momentum

Bitcoin Soars Above $9K Mark with Strong Momentum

The cryptocurrency market might have had a horrid time over the past few weeks, but things have changed this week.

Much of the reversal in fortunes is possibly tied to the upcoming Bitcoin halvening event.

Why the Sudden Jump?

The world’s biggest cryptocurrency by market cap has been in the doldrums due to the coronavirus-induced market crash over the past weeks, but now it seems to be on course to reach its previous levels. This morning, Bitcoin gained 1.9% to hit $9,099 a token, and that is a strong start, considering the fact that it gained 15% yesterday.

Any major rally in Bitcoin is generally followed by a rally in other cryptocurrencies as well, which is exactly what happened today. Other major cryptocurrencies like Bitcoin Cash and Litecoin recorded gains for the third consecutive day. Over the past few weeks, the price action in the crypto sphere has been in lockstep with other asset classes that are classified as risky. However, the situation has changed dramatically this week. Crypto experts suggest that the rally in Bitcoin is possibly linked to the halvening event that is going to take place this May.

A halvening indicates the slashing of rewards by 50% for Bitcoin miners, and when that happens, it usually results in a lower supply of BTC tokens in circulation. Many analysts are pondering whether the cryptocurrency is going to experience a crash at this time. As a matter of fact, it is important to point out that in the past, the cryptocurrency has shown significant bearish price action on the day of the halvening.

>> Ethereum Soars Over 125% Since March: What to Expect Now?

That being said, it is also necessary to point out that it is very difficult to predict whether BTC is going to rise or fall on the day of the halvening event. However, it should be kept in mind that months after the previous two halvening events, Bitcoin went on strong rallies.

Article Produced By
Ankit Singhania

Based in India, Ankit is a financial content writer and stock market analyst. He has worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI. Currently, he serves as a financial consultant and technical analyst at Tradersinsights.com.

https://cryptocurrencynews.com/bitcoin-soars-9k-mark-04-30-20/

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Bitcoin Price Hits Two-Week Low, Garnering Interest from Small Investors

Bitcoin Price Hits Two-Week Low, Garnering Interest from Small Investors

Bitcoin price fell by 9.8% last week, registering its most significant weekly decline since mid-March.

The currency hit a two-week low of $8,630 early Monday, with prices last seen at $8,730—which is down more than 11% from a post-halving high of $9,960 on May 18. The recent price drop is, in turn, causing the number of addresses holding smaller amounts of Bitcoin to rise. The number of unique addresses that are holding at least 0.01 BTC (approximately $87 at current price) rose to a new high of 8.47 million on Sunday, according to blockchain intelligence firm Glassnode. At the same time, the number of addresses holding at least 0.1 BTC (roughly $870) rose to a lifetime high of over 3 million households on Friday. Some believe the increased demand during the price dip may be associated with the idea that Bitcoin could repeat history by charting a price rally over the next 12 months.

The cryptocurrency experienced a 30% pullback in the four weeks that followed its second reward halving on July 9, 2016. However, the decline was erased in the months that followed, and prices rallied to record highs by March 2016. “The price pullback was expected, and the long-term bias remains bullish,” said QCP Capital’s co-founder and managing director Darius Sit. “We would accumulate if prices drop to the $6,000-$8,000 range.” Of course, the number of small addresses doesn’t necessarily represent new individual investors because a single person can hold cryptocurrency in more than one address.

On top of that, exchanges and custodial services also hold Bitcoin in multiple addresses. “Wallet management systems of virtual asset service providers have become more complex and granular. Their wallet clusters include more small wallets for security,” said Ju. Even if small investor participation has been increasing, it’s unlikely to have a significant impact on Bitcoin price, as the market is still dominated by large players, which are typically known as “whales.” On the flip side, the number of addresses holding at least 10,000 BTC and 1,000 BTC have gone down over the last two weeks, according to Glassnode.

>> Persisting Problems: Will Blockchain Be Used in the Next US Election?

What’s more, options market activity is suggesting a more profound price drop could be in the offing in the near-term. “Traders are buying out-of-the-money puts,” said Head of Digital Assets at Swissquote Bank Chris Thomas. A put option is a bearish bet on the cryptocurrency, and a call option represents a bullish bet, while an out-of-the-money put option has a strike price that’s lower than the market price of the underlying asset. Thomas said he expects Bitcoin to move toward the $8,000–$8,200 range in the short-term, which looks likely, as the cryptocurrency has breached a trendline rising from March lows.

Bitcoin fell by 5% on Monday, going against the support of the 2.5-month-long bullish trendline. “However, the relative strength index is neutral,” Yuriy Mazur, head of data analytics at cryptocurrency exchange CEX.IO, told CoinDesk. “There is no clear understanding where BTC will go, currently. It may either retrace back to $6,500 or reach $10,000. We may get a clear indication of the further direction in the nearest days.” The immediate bearish case will weaken if Bitcoin price rises above Sunday’s high of $9,310 on the back of strong volumes. However, it may take a convincing move above $10,000 to restore the bullish trend.

Article Produced By
Kristen Moran

Since graduating from the Journalism Program at Langara College, Kristen has gained over six years of experience writing for newspapers, magazines, online publications, and blogs – covering everything from municipal politics to local restaurants to mining projects in Brazil. Now she serves as a finance writer, covering cannabis, mining, tech, biotech, and investing. She has a passion for the written word, as well as cooking, dancing, traveling and life, in general.

https://cryptocurrencynews.com/bitcoin-price-two-week-low-05-25-20/

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China blockchain firms may lose access to US capital markets

China blockchain firms may lose access to US capital markets

Sunlight is often said to be the best of disinfectant.

For publicly traded companies, that sunlight comes in the form of transparency and reporting. Last Wednesday, the U.S. Senate took steps toward forcing Chinese companies to adhere to the same transparency rules as other corporations or risk losing access to U.S.-based stock exchanges. For China-based ASIC hardware manufacturers, this new regulation might be the last nail in the coffin for their U.S. capital market aspirations. It could lead to delisting for those already traded.

Controversy has followed many leading China hardware makers when they have attempted to list publically in the past. Canaan and Bitmain were accused of misleading investors regarding their financial well-being in the lead-up to an initial public offering (IPO). Online reports claim Bitmain omitted negative Q2 2018 info on their investment prospectus during its ill-fated first attempt at an IPO listing. A lawsuit filed by Scott+Scott Attorneys accuses Canaan of misleading an investor before their recent NASDAQ sale, which only raised less than one quarter of its $400 million initial target. Ebang has recently announced they filed for a $100 million IPO with the U.S. Securities and Exchange Commission (SEC). The company’s prospectus shows it made over $109 million in 2019, but it also had a deficit of around $41 million.

The IPO move comes two years after its aborted listing on the Hong Kong Stock Exchange (HKEx). Chinese news outlet Sina Finance reported that Ebang halted that $1 billion IPO raise while under a cloud of alleged involvement in illicit financial activities. In late December 2019, 8BTC reported the company was under investigation by Beijing authorities. The bipartisan bill, known as the Holding Foreign Companies Accountable Act, passed unanimously. It requires Chinese companies to disclose if they are owned or controlled by a foreign government. The companies must also submit to an audit that the Public Company Accounting Oversight Board (PCAOB) can review for three consecutive years. There are over 150 Chinese registered companies listed on the most prominent three U.S. stock exchanges. These companies are currently not subject to PCAOB audits.

Some organizations might look to repatriate back home to the stock exchange in Hong Kong or Shanghai rather than submit to this enhanced regulation. Proponents of the bill point to the recent Luckin Coffee scandal were employees fabricated $300 million in sales to justify the critical need for investors to know more about the foreign organization being listed. Alongside new congressional regulations, Reuters reported that the Nasdaq exchange is preparing to unveil its own new restrictions on IPOs, which will also make it more difficult for smaller China-based companies to get listed. Small Chinese firms often pursue IPOs because it allows their founders and early backers to cash out, rewarding them with U.S. dollars they typically cannot easily access. The founders can use their new Nasdaq-listed status to convince lenders in PRC to fund them or get subsidies from Chinese local authorities after going public.

Per the report, what motivates the proposed rules is, in part, concerns that some Chinese IPO hopefuls lack accounting transparency, have low liquidity, and close ties to powerful government insiders. The upcoming rule change will require companies from certain countries to raise $25 million in their IPO or at least a quarter of their post-listing market capitalization. It would also require auditing firms to ensure that their international franchises comply with global standards. Nasdaq will inspect the auditing of small U.S. firms that audit the accounts of foreign IPO hopeful. In any event, the future for these Chinese ASIC hardware companies doesn’t look for investors. Because of the market price stagnation of BTC, there is no demand for their products. Geopolitical issues aside, they built their revenue models based on the demand growing from a digital currency that has no intrinsic value or utility. 

Article Produced By
Jacob Rozen

Jacob is a lifelong system engineer and a longtime advocate for Bitcoin. His goal is to continue learning more about Bitcoin SV while also helping onboard other into the ecosystem.

https://coingeek.com/china-blockchain-firms-may-lose-access-to-us-capital-markets/

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