Displaying items by tag: cryptocurrency

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.”

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.

Bitcoin has fallen from $61,683.86 to 9.57% within a seven day trailing period. 

The MarketWatch reported the opinion of the market analyst at ThinkMarkets, Fawad Razaqzada, "Judging by recent events, traders seem happy to be selling into the rallies rather than buying the dip.

So, don’t be surprised if we see renewed weakness in the markets later on in the session"

The Analysts expected the downwards momentum to continue and warns that BTC may breach the $50,000 levels.

MarketWatch reported that Razaqzada has urged Bitcoin traders to exercise caution, in his words “appetite for risk” is slowly fading, .

Some are of the opinion BTC’s decline is the expiration of $5 billion worth of options, due on Friday, as per Ai.

According to the analyst, the expiration of contracts and some investors pushing the price lower to make money from bets against the cryptocurrency in the options market “have led to spot-selling pressure into quarter-end.” 

Tagged under

…Say CBN, SEC should unfold swift regulatory frameworks for trading


Reactions have continued to trail the decision of the Central Bank Of Nigeria (CBN) to prohibit and close all accounts transacting business in cryptocurrencies in the country.

Experts who spoke with The Daily Times on the development believed that the CBN’s ban is temporary and might be for the major purpose of affording the apex banking institution the time to run an indepth study on virtual currency in order to come out with a regulatory framework and policies.


In an exclusive interaction with The Daily Times, a developmental economist and Chairman of the Board, Amaka Chiwuike-Uba Foundation (ACUF), Dr. Chiwuike Uba, said the CBN has access to data/information that is not available to the public, and would have acted based on what it has.

However, it is important to communicate the reasons for the new directives to the public, he said.

“Unfortunately, it is very difficult to make any meaningful commentary on the CBN’s directives to banks to close all accounts transacting in cryptocurrencies, since the CBN gave no reason for the sudden volta-face in its directives/circular.


“This is so because in the circular of January 12, 2017, the CBN, while recognizing the dangers the virtual currency poses to the country given that crypto is unregulated, transferred the risk burden and choice to trade/transact to individuals and commercial banks.

“Obviously, the CBN has access to data/information that is not available to the public; and would have acted based on information that they have. Be that as it may, it is important to communicate the reasons for the new directives to the public.

“Having said that, outright and sudden banning of cryptocurrency transactions in Nigeria may not be a smart strategy, because crypto has come to stay in Nigeria.

“First, despite the ban, person to person (P2P) transactions would continue, through the circumvention of the Nigerian finance/currency space.

In this case, dealers on crypto will not withdraw straight into their account from their wallets. I believe the CBN’s ban is temporary and is to afford the regulatory institution the time to run an in-depth study on virtual currency, to come out with a regulatory framework and policies.


“The ban, however, maybe the best option for the country in the face of arbitrariness and the havoc crypto has on Nigeria’s forex policy.

I would have recommended stakeholders’ consultations with the crypto market operations before the ban, thereby, giving them a chance to work out a smart, implementable and sustainable plan with the CBN.


“While the temporary ban is commendable, it is important for the CBN to come out with the regulatory framework and/or policy on crypto, as quickly as possible to save the economy from cash flows, foreign direct investments, and job losses that may ensue from the ban.

“Outside the jobs and economic activities, virtual currency is creating, the country may be losing available funds for economic activities because most of the virtual currencies are domiciled in other countries.

Therefore, whereas the individual investors may be making some gains as a result of the yield on investment, Nigeria is starved of the money, which would have been invested in Nigeria.

“Certainly, investment in Nigeria may have a higher Return on Investment (RoI), while creating jobs. Also, stashing the money overseas and withdrawing the banks may put unnecessary pressure on Nigeria’s foreign reserve.

“These are in addition to the risk of government’s inability to trace the movement of the funds and security challenges posed by such transactions to the economy. Nigeria, therefore, needs a clear roadmap on virtual currency, without further delay. Banning is not enough,” he added.


Also, in an enquiry by The Daily Times, Nigeria’s first professor of the Capital Market and former Head of Department, Banking and Finance, Nasarawa State University, Uche Uwaleke, acknowledged that the decision by the CBN is not a unilateral agreement, stating that it should come together with the SEC to build up a swift regulatory framework for crypto asset trading in the country.

“Given the weighty nature of the directive, I want to believe that the CBN must have consulted relevant stakeholders including the Bankers Committee before taking the decision.

“I am inclined to believe that it was well thought through and not a unilateral decision. The fact is that what the CBN could see in a squatting position, many cannot see standing.

“So, I think the directive should be seen in light of this fact that the CBN may haveinformation which may not be available to the public.

“In my view, the flaw in that circular is that it did not state the reason why the apex Bank is taking that course of action. It should have done so especially if it’s to do with fraudulent activities and threats to financial system stability.

“I recall that not too long ago at some point, China, widely seen as the home of Cryptocurrencies, had to ban trading in bitcoins.

“I believe this measure is only temporary. Given that cryptos have come to stay, the CBN and the SEC should come up with a regulatory framework for crypto asset trading in Nigeria,” Prof. Uwaleke added.


Also speaking with The Daily Times, a stakeholder in cryptocurrency, Mr. Ibrahim Adjikpe, warned that the move by the CBN threatens crypto assets growth in the country in which the youths have invested a lot in, urging that the federal government to find a way to resolve the issue as soon as possible.

According to him: “Genuinely the crypto ban news by the Central Bank Of Nigeria was a great shock to many giving the importance and how Nigeria youths have strived hard to make the market grow so much and create means for many.

“It is very saddening that the Nigeria government made such the decision to threaten such growth and effort of the youths at this time of high unemployment rate and economic meltdown.

“Cryptocurrency is a global innovation and it’s a very bad decision for any government to ban cryptocurrency especially in a developing countries and I hope the federal government somehow will still find a way to fix this.”

Meanwhile, despite the widespread criticism which greeted the CBN’s circular banning cryptocurrency operations in the country, the apex bank has vowed that it will continue to do all within its regulatory powers to educate Nigerians to desist from the use of cryptocurrencies.

According to CBN, it is determined to protect the country’s financial system from activities of “fraudsters and speculators.”

Listing various reasons for its action, the central bank said not only are cryptocurrencies issued by unregulated and unlicensed entities, the patrons and users value “anonymity, obscurity, and concealment” and there are risks of “loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities.

“China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal and Cambodia have all placed a certain level of restrictions on financial institutions facilitating cryptocurrency transactions,” the apex said in the statement signed by Osita Nwanisobi, the acting Director, Corporate Communications Department.