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Circle Keeps Getting Investors Despite the Bitcoin Bear Market

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The cryptocurrency company called Circle, which is startup backed by Goldman Sachs reveals a significant increase in institutional investors, despite the Bitcoin bear market. The prices of cryptos went down significantly in the last six months, but the number of investors keeps rising, claims the company.

30% more investors in May alone

Ever since the beginning of the year, the value of cryptocurrencies kept dropping after hitting a new record in late December. Despite this situation, a lot of companies with a focus on cryptos have seen a significant increase in institutional investors, and in the case of Circle, that increase goes up to 30%.

The company has seen the biggest increase in investors back in May 2018, when it decided to upgrade and mature its product through platform’s automation. The goal here was to create a possibility of accepting larger block orders so that they could match the increase in demand and achieve high-frequency trading.

What the company did not expect is that their modernization will attract so many new investors, even though the crypto prices dropped more than ever before. According to Circle’s CEO, Jeremy Allaire, the reason for maturing their product is that the institutional investors are turning away from telephone brokers. Instead, they seek to operate through an electronic interface.

This is why the firm saw the need to improve and allow high-frequency trading and bigger block orders. The result is that the company will become much more automated and digitized after it witnessed a 30% spike in investors’ interest this May. Interestingly enough, May was actually among the worst periods for cryptos.

The new investors brought more work for the company, and they are now witnessing a transaction volume that is 15 times bigger than that of last year’s. After getting feedback from their clients, which included both venture capital firms, as well as family offices, Circle has decided that the changes are in order. Otherwise, the company simply could not be capable of handling the customers’ needs, which went from $100,000 to $1 million in high-frequency equity trades.

So far, Circle’s offices in Hong Kong, London, and the US were quoting the prices manually via various instant messaging platforms such as Skype. After doing so, the trades would have been authorized. Now, the process will be automated, which will increase the speed as well as the number of trades that were conducted in a certain time period.

Circle to work with federal authorities

Circle’s plans to provide its customers with more services have been around for a while, and the company even attempted to get a US federal banking license to do so. They also wanted to help out their investors with sale and purchase of coins that are usually seen as securities. To do so, they have to be seen as a trading venue and brokerage by SEC.

If they are successful in doing this, they will be the first one to do so, and it will be quite an achievement. So far, Circle operated at a state-level, but it now wishes to try and reach the level where it will work directly with federal authorities. This will effectively reduce the number of regulators that Circle will have to report to due to the superiority of the federal law.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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