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Morgan Creek Fund bans Ripple’s XRP alike cryptos from its new crypto repository

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The controversy related to whether or not Ripple’s XRP should be considered as a security has appeared one more time as today it was excluded in the launch of the Morgan Creek Fund, a crypto related fund that provides its users the possibility of accessing some of the top cryptos in the market.

In this sense, whenever we mention ‘top cryptos’ we cannot avoid thinking of Ripple (XRP), the third largest cryptocurrency by market capitalization. However, as it seems, the third largest crypto is just not being considered by the fund because of centralization issues. Let’s see all of the details on this.

Morgan Creek Fund

The Morgan Creek Fund was created in collaboration with Anthony Pompliano, who formerly was the owner of a firm called Tilt Capital, a company that was acquired by Morgan Creek at the beginning of the year for an amount that has been undisclosed since the partnership started.

Earlier this year we knew by Pampliano himself that he would like to focus primarily on crypto, but it wasn’t till Morgan Creek managed to partner with the fund-sponsor Bitwise Investment Advisors, LLC; when the project started to shape.

Let’s recall that earlier this year, Bitwise launched as well a crypto-related fund dubbed HOLD 10. However, Hunter Horsley, co-founder of Bitwise clarified that the main difference between the two projects centers on the committee, as Mark Yusko, CEO of Morgan Creek, Pompliano, and Matt Hougan, head of the research at Bitwise, are a part of the board of advisors.

With relation to the fund, it was known that it carries $1.5 billion in assets, and they will provide pensions, wealthy families, endowments and accredited investors with an exposure to cryptos such as Ethereum (ETH), Zcash, Monero, Litecoin (LTC), Omisego, Bitcoin cash (BCH), EOS, Dash, Ethereum classic (ETC), and of course Bitcoin (BTC).

Among the excluded coins we can find Ripple (XRP), TRON (TRX), Stellar (XLM), Cardano (ADA), and other tokens that in accordance to Morgan Creek may represent a risk in the future.

Regarding this, Pompliano stated that,

“If there’s a central party that owns 30% or more of supply” that would be enough reason for the index to ban that crypto of the fund. He continued by saying that those coins holding high percentages of their own crypto have great opportunities to control the way the coin will perform, and that simply “introduces a lot of additional risks that may not be there if it was a more decentralized network.”

With relation to this, all of the coins that fit in this description are considered pre-mined cryptos, coins that were mostly created in the early stages of the blockchain. For its part, Horsley states in this matter that,

“with decentralization being a cornerstone of most blockchain designs, having a large portion of assets held centrally runs counter to that and could create complexities that differ from what we would expect from public blockchains”.

Conclusion

The decision of the Morgan Creek fund definitely represents a low blow for Ripple, which has made significant efforts to dispel the rumors of their centralization issues. Nonetheless, the company continues occupying the third place in the market concerning market capitalization.

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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 thorough research before investing in any cryptocurrency and read our full disclaimer.

Photo by Isaiah Rustad on Unsplash

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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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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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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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