Connect with us

Bitcoin

Why Were Bakkt Bitcoin Futures Delayed?

Published

on

Bakkt Bitcoin

Bakkt has been a highly-anticipated project ever since it was first announced in mid-2018. It was supposed to become the largest Bitcoin futures trading platform, and many in the crypto industry hoped that the platform going live might mean the arrival of institutional investors. However, the platform’s launch was delayed time after time, and while it was supposed to go live in late 2018 — it simply did not make it.

Many were hoping that it will finally arrive in February 2019, although the US government shutdown prevented that as well. These days, the situation has finally calmed down, although Bakkt is still struggling with the launch. However, according to recent reports, the problems might lie in the platform’s inability to gain regulatory approval.

The real reason why Bakkt platform cannot go live

Bakkt’s plan is to start offering Bitcoin futures contracts, which ware basically investment contracts according to which the investor is obliged to purchase or sell a certain asset at a certain date, and at a certain price. There are multiple crypto exchanges that already deal with Bitcoin futures, although these contracts are typically settled in cash.

Bakkt’s plan would include paying them out via Bitcoin. Of course, to be able to do this, Bakkt itself needs to hold BTC. However, that would make it a type of custody service. The problem lies in the fact that Bakkt’s custody service must meet certain regulatory requirements — which it, apparently, does not.

According to the regulator, the CFTC, clearinghouses need to deposit customer assets at trust companies or banks, which is a criterion that Bakkt currently does not meet. The fact that the CFTC prevents Bakkt from going live due to this aspect alone might also mean that the US government shutdown is not the only reason why Bakkt launch did not happen in February.

What to expect next?

Considering the problem, it appears that Bakkt has decided to attempt and obtain the necessary permission from New York state regulators. Getting this permission would mean that Bakkt can self-certify without actually acting as a trust company or a bank. However, historically, obtaining a Bitcoin license in the state of New York is neither easy nor quick, which might mean that Bakkt will not see the official launch of its platform for quite some time.

Even so, the project is still allegedly moving forward, at least according to its CEO, Kelly Loeffler, who recently stated that ‘the race day is approaching.’ In addition, the Intercontinental Exchange, which is the parent firm to Bakkt, recently expanded its crypto data feed. This led some investors to believe that Bakkt’s launch might not be that far away after all.

For the latest cryptocurrency news, join our Telegram!

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.

Photo by rawpixel.com from Pexels

Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

Published

on

As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

Continue Reading

Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

Published

on

Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

Continue Reading

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

Published

on

Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

Continue Reading

Press Release