Displaying items by tag: Bitcoin

The chief technology officer (CTO) of Ripple, David Schwartz, said on CoinDesk TV that “all the evidence” suggests bitcoin (BTC, -2.44%) and XRP (-12.79%) are similar despite allegations XRP is being sold illegally as a security.

Speaking during “First Mover” on Wednesday, Schwartz said: “The market considers them similar. We consider them similar.”

Ripple is in the midst of defending itself against a U.S. Securities and Exchange Commission (SEC) action alleging the company and two of its executives violated U.S. securities laws in selling XRP to retail consumers. The SEC action “came out of nowhere,” said Schwartz, who said XRP and cryptocurrencies like bitcoin are “completely different.”

The Ripple CTO also used his television appearance to allay fears XRP holders may have about whether certain outcomes of the lawsuit could result in Ripple ceasing operations.

“The market caps of these systems are in the billions of dollars. People acting in their own self-interest are not going to allow the ecosystem to die if there’s a way to save it,” he said. “That’s all that’s holding these systems together. The governing bodies don’t have any legal authority to control these systems. You have to think that people will be able to come together enough to fix it.”

 XRP has enjoyed a price rally in recent days, surging above the $1.00 mark for the first time in three years Tuesday.
 

Schwartz was hesitant to offer firm reasons for this increase but suggested that rumors of a relisting of XRP by Coinbase “might have triggered some upward movement.”

Another factor, he said: “The hearing in the case where Ripple was granted access to SEC documents … might have impacted the price.” But he admitted that “there’s really no way to know.”

 Inflows into cryptocurrency funds and products hit a record $4.5 billion in the first quarter, suggesting increased institutional participation in the once-maligned sector, data from digital currency manager Coinshares showed on Tuesday.

The first quarter inflows represented an 11% increase from the last three months of 2020, which hit $3.9 billion.

Investments into crypto, however, slowed in the first quarter compared with the fourth, where growth was 240%, data showed. Coinshares said in the report, however, that this was not "indicative of a broader slowing trend, as quarterly growth rates tend to be highly varied."

On Monday, the cryptocurrency sector hit an all-time peak of $2 trillion in market capitalization. Bitcoin's market cap was more than $1 trillion, holding that milestone level for one whole week.

"There's so much momentum that's building and people are scrambling to see where the other coins, aside from bitcoin, are going," said Edward Moya, senior market analyst at online FX trading platform OANDA.

Bitcoin had the most inflows in the first quarter with $3.5 billion, according to the Coinshares data, followed by ethereum, which posted $765 million in investments.

The largest cryptocurrency in terms of market cap hit a record high of $61,781.83 in mid-March, but has since traded in a narrow range as investors consolidated gains.

Crypto assets under management have also surged to a peak of $59 billion, CoinShares data showed. Last year, assets under management for the sector hit $37.6 billion.

Grayscale is still the largest digital currency manager, with $46.1 billion in assets, while CoinShares, the second biggest and the largest European digital asset manager, oversees about $5.1 billion in assets.

Of the $59 billion in assets under management, active investment managers represented just 1.5% of total assets under management, down from 3.6% at the start of the fourth quarter last year.

Total market volumes remained high during the quarter, averaging $11.6 billion per day, compared with $3.5 billion in the last three months of 2020.

 

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GUANGZHOU, China — The value of the cryptocurrency market topped $2 trillion for the first time on Monday driven by a rally in ether, the second-largest digital coin.

In just over two months, the market capitalization of the cryptocurrency market has doubled, according to price tracking website CoinGecko, as retail and institutional investors pile into the space.

 Bitcoin, the biggest digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Bitcoin has rallied over 100% this year alone, and that has helped drive the cryptocurrency market higher.

Last month, bitcoin hit a record high of above $61,000. The digital coin was trading at about $58,800 on Tuesday, according to Coindesk data.

Ether rally

But the latest boost in the cryptocurrency market appears to have been driven by ether, the digital coin that powers the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain which is a public ledger of activity and a way for transactions to take place using the cryptocurrency. In comparison, the Ethereum blockchain is more like a software platform that allows developers to build apps on top of it. Users can then spend ether on these apps.

So-called smart contracts are a key feature of Ethereum. These are contracts that can be automatically executed using code.

There is growing excitement about the use of Ethereum in so-called decentralized finance, or DeFi, applications. These are blockchain-based financial services, such as lending, which could in theory bypass banks and brokerages. Users of these apps may transact using cryptocurrency.

Ethereum also has the underlying technology behind the recent craze in non-fungible tokens, or NFTs — a new type of digital asset.

Innoson Vehicle Manufacturing has denied alleged partnership with Zugacoin Cryptocurrency for the use of crypto currencies in purchasing vehicles.

The Head of Corporate Communications and Affairs, Innosen Group, Cornel Osigwe, debunked the allegations on Monday in a statement titled ‘Re: Nigerian Cryptocurrency to be used to buy Innoson vehicles’.

He stated that the company did not accept zugacoin or any other crypto currency for the purchase of Innoson vehicles or any other products from Innoson Group.

“We did not sign any partnership with any organisation on the use of any form of crypto currency for the purchase of any product from Innoson Group,” the statement said.

Osigwe said the company stood by the Central Bank of Nigeria’s decision that the use of cryptocurrencies in Nigeria contravened existing laws as they were not legal tender.