Fidelity Digital Assets Services (FDAS), a crypto trading and custody division of investment giant Fidelity Investments, will likely delay support for Ethereum (ETH) for a while, a senior executive of the platform has said.
Fidelity’s digital asset subsidiary launched this quarter, with its initial plans being to support bitcoin and then ether.
However, according to the digital asset platform’s president Tom Jessop, FDAS will use an internal framework it has developed to evaluate any of the cryptocurrencies that may need to add.
Although FDAS had earlier indicated that it would add ether as well as other cryptocurrencies to the platform, Jessop’s latest remarks suggest that the process may not be that simple and straightforward.
The FDAS chief has said that other than the currently supported bitcoin, the platform has “designs to support other coins over the balance of the year,” although these will be subject to “several criteria.”
These conditions include using the platform’s selection framework that looks at among other things, the client demand for the asset.
Speaking to crypto news outlet Coindesk, Jessop explained that their framework seeks to establish several things about an asset.
For instance, the focus would be on how decentralized the coin is, or whether the coin’s protocol has any “peculiarities” that would dissuade FDAS from launching support or continue to provide access to any given cryptocurrency.
Jessop noted that the platform may list coins subject their market capitalization, because “that’s where the demand.” However, market cap and appearance among the top cryptocurrencies may not be enough to guarantee a coin’s listing on the trading and custody platform.
To this effect, he expounded that reasons may abound that mean refusal to list a coin, which may not have anything to do with client demand for particular crypto.
And that is what Jessop points to in reference to a delay in adding ether, currently crypto industry’s second-largest coin by market cap.
He reportedly told the publication that Ethereum’s upcoming hard fork and other network upgrades mean that “[FDAS] is trying to see how those things work out” first, before a deciding whether or not to add it to the platform.
Ethereum recently activated its Constantinople hard fork that introduced a number of improvement proposals (EIPs), among them one that seeks to cut block rewards. The network has another hard fork called Istanbul set for October this year.
Scaling FDAS over 2019
According to Jessop, the challenge that Fidelity has is to ensure that its FDAS platform protects investors- especially in the wake of the 51% attack that hit Ethereum Classic (ETC) at the beginning of the year.
Moving forward, FDAS has plans that the exec says will see the platform scale its services and add new clients to ensure they cover 90 percent of the U.S. market by the end of 2019. It will nonetheless be in areas where the business has “jurisdictional authority to operate.”
To achieve this, the firm will seek to secure regulatory approvals, including money service business licenses, with operations currently allowed in “a considerable number” of U.S. states.
Notably, also, the investment firm has upped its pursuit for registration as a qualified custodian, which Jessop said was a priority and will likely be granted this year.
Jessop added that the platform’s management team will double up on their efforts to identify and fix any potential bugs in the system.
Meanwhile, Fidelity’s platform continues to attract a significant number of clients from various sectors, including, hedge funds, family offices, crypto funds, and high-net-worth individuals.
FDAS has also attracted exchanges, which are looking to use Fidelity’s platform to offer custody solutions to their clients, with the firm set to see “hundreds of millions” in assets under management brought in via this business channel.
Also on the list of potential clients are pension funds, although that could take a while before many of these funds commit money to the crypto asset class.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.
Bitcoin Overbought Above $12K But Analysts Understate Drop Fears
Bitcoin rose above $12,000 on Wednesday for the first time since August 2020 but signaled an imminent price correction as it entered a so-called “overbought” area.
The readings on Bitcoin’s 14-day Relative Strength Index pushed above 70, a level above which an asset’s bullish trend is considered overstretched. While that does not signify a price crash, it certainly indicates that the crypto may undergo consolidation or a minor retracement at best.
The last three RSI retracements from overbought zones this year coincided with one major price crash and two consolidation moves.
In early February 2020, the RSI level had peaked at 74.33 that later followed a huge slide – from $10,522 to as low as $3,858. Meanwhile, the overbought cases that followed later saw Bitcoin trading in a sideways range, with a bias towards bulls. That left the cryptocurrency in a conflicted scenario as its price attempts to hold $12,000 as support.
Some analysts expected the Bitcoin price to climb further upwards despite its overbought status. A pseudonymous one expected BTC/USD to march towards $15,000, almost a thousand dollars above its 2019 high.
My preferred scenario would be for #bitcoin to go straight to $15k from here.
Reaching that level would likely set up for really good alt coin buying opportunities and set a really strong trend going forward.
I’m really getting tired of the chop.
— NebraskanGooner📈 (@nebraskangooner) October 21, 2020
Meanwhile, Bitcoin advocated Pierre Rochard focused on the fundamental end of the cryptocurrency. He recalled the recent investments of major institutions into Bitcoin (MicroStrategy, Square, etc.), adding that more firms would “panic-buy” the cryptocurrency against their non-yielding cash investments. Excerpts:
“Square only bought $50 million worth of bitcoin. They’re going to panic buy more. And eventually, [Apple] will panic buy. Holding and rolling short duration fiat-denominated fixed income “cash-equivalents” is financially irresponsible due to inflation.”
Logan Han, a daytrader-cum-market analyst, also envisioned Bitcoin at $20,000, its previous record high, if the cryptocurrency manages to hold or consolidate above $12,000.
“Lower $12K region is a historically crucial price range for Bitcoin,” Mr. Han explained. “If BTC manages to take a leap here and reach $14K, there’s nothing stopping BTC from going straight to $20K.”
Bitcoin Correction Setup
A pseudonymous analyst on Twitter posted a relatively balanced outlook on the Bitcoin market. He stated that the cryptocurrency had every chance to sustain its uptrend above $12,000. Nevertheless, he further noted that a correct below the said level would put Bitcoin en route to $11,150 – a support target.
“I’ve been bullish above $11,150 but approach such a key level of resistance is bringing out my bear market PTSD,” the analyst added.
BTC/USD was trading near $12,200 at the time of this writing, up 2.33 percent into the Wednesday session.
PayPoint Sells Romanian Business for £47 Million
The final agreement for the deal is now pending with the regulators.
Retail payments platform PayPoint is exiting Romania by selling all its businesses in the country to Innova Capital for around £47 million (around $61.14 million) on a debt-free cash-free basis.
Announced on Wednesday, PayPoint will sell its two Romanian arms, PayPoint Services SRL and PayZone SA.
The step was taken so that PayPoint can focus on its priorities on the key United Kingdom market. The company is considering enhancing its UK business and will invest the proceeds from the acquisition there.
“Consistent with our strategic priorities, we are pleased to have agreed the sale of PayPoint Romania,” PayPoint CEO Nick Wiles said. “We have decided to sell the Romanian business to focus on our core UK markets and the delivery of our strategic priorities for future growth in these markets. We believe that Innova is the right owner to take the business forward, and we wish PayPoint Romania and Innova well for the future.”
How the OKEx Saga Reveals the Need for Decentralized ExchangesGo to article >>
Exiting a Profitable Business
PayPoint entered Romania in 2007 and established a strong network of its retail payments business in the country. According to the company, it partnered with local retailers through around 19,000 sites and was enabling consumers to make cash bill payments, money transfers, road tax payments, and mobile phone top-ups.
The business also performed impressively and generated £69.7 million in revenue for FY2020, ending on March 31, with an adjusted EBITDA of £7.3 million and a pre-tax profit of £6.8 million.
The two Romanian wings of PayPoint had a gross asset of £48.5 million till the ending of the last financial year.
“The Romanian business has been part of the Group for 13 years, and I would like to thank the Romanian management team and employees for their contribution to PayPoint over this time,” Wiles added.
Crypto.com Integrates PayID Offering 5M Users an Easy and Unique Way to Send & Receive Crypto
HONG KONG, October 19, 2020 — Crypto.com today announced PayID, a universal payment identity developed by the Open Payments Coalition, is now available on the Crypto.com App.
Crypto.com’s 5M+ users can register for a PayID from the Crypto.com app, consolidating complex wallet addresses and accounts into a simple ID that works across any payment network and currency. Users who register for their unique PayID will get an exclusive Crypto.com-branded, easy-to-read ID — such as “yourname$payid.crypto.com — that enables users to send/receive crypto payments from other compatible wallets with just a single ID, easing their ability to connect to 100M+ crypto users worldwide.
PayID solves a key pain point in the crypto payments world, which consists of many closed and complex networks. Participants must manage multiple long and random wallet addresses, increasing the likelihood of erroneous transactions. PayID creates a free, open and common protocol that allows for interoperability between any payment network or currency.
Starting today, Crypto.com is offering early access for select customers to register their unique Crypto.com PayID. To be eligible:
- Stake 10,000 CRO or more in Crypto.com Exchange; or
- Stake 10,000 CRO or more in Crypto.com App
On 2 November 2020 all Crypto.com App users can register their own Crypto.com PayID within the Crypto.com App.
Once registered, users can send crypto from other compatible wallets to the Crypto.com App with just their PayID, instead of a full-length crypto address. At launch, supported cryptocurrencies include CRO, ETH, BTC, XRP and many more ERC20 tokens. Users can also send crypto to other compatible wallets using PayID hosted by other members in the Open Payments Coalition.
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity. Crypto.com serves over 5 million customers today, providing them with a powerful alternative to traditional financial services through the Crypto.com App, the Crypto.com Card, the Crypto.com Exchange and Crypto.com DeFi Wallet. Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have ISO/IEC 27701:2019, CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance. Crypto.com is headquartered in Hong Kong with a 600+ strong team. Find out more by visiting https://crypto.com
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
Blockchain1 month ago
Bitcoin price volatility expected as 47% of BTC options expire next Friday
Blockchain1 month ago
Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
Blockchain2 months ago
Market Wrap: Bitcoin’s Powell-Induced Price Swing; Ethereum Still High on Gas
Blockchain1 month ago
Ethereum: Is the HODLing in yet?
Blockchain1 month ago
Blockchain Bites: Is DeFi an Inside Deal?
Blockchain1 month ago
Hackers Have Been Trying To Crack Bitcoin Wallet Worth $750 Million But Here’s The Catch
Blockchain1 month ago
YFI Founder Puts Himself Forward for Uniswap (UNI) Delegation Duties
Blockchain3 months ago
Wealthfront Lures Millenials With Crypto Memes and Tactics