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SEC postponing decision on VanEck/SolidX Bitcoin ETF

The decision on a Bitcoin exchange-traded fund has been postponed again by the United States Securities and Exchange Commision (SEC) according to an official document published on the 6th of December. Setting the new deadline for the 27th of February, 2019, the US top regulator extended the review period for the third time this year. […]

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The decision on a Bitcoin exchange-traded fund has been postponed again by the United States Securities and Exchange Commision (SEC) according to an official document published on the 6th of December.

Setting the new deadline for the 27th of February, 2019, the US top regulator extended the review period for the third time this year. The proposal was initially filed by Cboe in collaboration with money management company VanEck and blockchain company SolidX last summer.

According to SEC rules, a decision on the proposal can’t be delayed any further, meaning the next notice must either approve or reject the ETF.

SolidX was the second company to file for a bitcoin exchange-traded product with the U.S. regulators. Some had argued that proposal from New York-based VanEck, the ninth biggest ETF provider, was more likely to gain approval thanks to plans for a high minimum share price that would discourage retail investors.

Previous ETF proposals of ProShares, GraniteShares and Direxion were rejected by the SEC. The reason that the VanEck/SolidX proposal differs from the others is that its value is dependent on bitcoin itself, rather than futures markets like the rejected nine proposals.

The SEC explained:

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change,”

The securities regulator said that it had received more than 1,600 comments on the proposed rule change as of December 6.

Source: https://bitrazzi.com/sec-postponing-decision-on-vaneck-solidx-bitcoin-etf/

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Uniswap’s $40M Governance Vote Closes on Halloween and Some UNI Holders Fear for Price

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Should users who interacted with Uniswap through a third-party interface be entitled to the free UNI tokens other users received on Sept. 17?

That’s the question at the center of a dispute currently taking place in Uniswap governance channels. The second-ever proposal to come before the Uniswap community would distribute airdropped UNI tokens to another 12,619 addresses, ahead of a second proposal set for nearly 27,000 addresses.

As of this writing, over 20.7 million UNI have been voted in favor of the proposal and more than 714,000 have been voted against. The vote closes on Oct. 31 at roughly 8:00 AM UTC.

While the vote may look extremely lopsided at the moment, the proposal will fail if less than 40 million UNI vote, establishing a quorum. The key obstacle to passage is probably reaching that threshold. 

The decision is widely interesting enough to the crypto community that it’s inspired a betting market on Polymarket, which currently leans toward the pitch for further UNI distributions failing.

If both proposals succeed, however, an additional 15,679,200 UNI would be distributed from the existing treasury, worth approximately $40.6 million, at the current price of $2.59 per UNI. Of that, 5,047,600 UNI would be redistributed from the treasury in phase one.

400 UNI, 40,000 more times

When the company behind Ethereum’s leading automated market maker, Uniswap, announced its governance token, UNI, in September, it surprised everyone by giving away 400 UNI to all wallets that had ever even used the decentralized application. Directly, that is.

At the time, each airdrop was worth well over $1,000.

Read more: Uniswap’s Distribution Is Built on Something That Can’t Be Forked: Actual Users

As a governance token, each UNI can be used to vote on decisions about changes to the dapp and also on expenditures from the Uniswap treasury, which has a supply of 430 million UNI or 43% of the initial supply.

The proposal under consideration now, and the one that will follow, concerns giving the airdrop to people who missed out on the gravy train through a technicality.

These individuals interacted with Uniswap using third-party software that enabled the transaction, touching Uniswap by way of a proxy contract. That made each of their wallets invisible to Uniswap itself. As the proponents of the proposal have argued: If decentralized finance (DeFi) is about money legos, what message does it send if only users of the base lego get the free crypto?

The current proposal centers on users who interacted with Uniswap via 10 different dapps – the largest being MyEtherWallet (MEW), Argent and Dharma, in that order.

Phase two involves users who interacted with Uniswap via decentralized exchange (DEX) aggregators. Five DEX aggregators represent 26,598 accounts, with the largest by far on the Kyber Network.

Lots of talk

The idea of a retroactive airdrop was raised almost as soon as UNI was announced by Nadav Hollander, CEO of DeFi portal Dharma. Hollander has said that as soon as people started receiving UNI, Dharma users began saying they were missing out.

“Ultimately the crux of the argument we are making is that the status quo has sort of negatively punished developers who took risks building on top of Uniswap,” Nadav Hollarnder of Dharma said during a group discussion hosted by Chris Blec, on his YouTube show, Thought Bubble.

In a Twitter thread, Uniswap founder Hayden Adams acknowledged the team was aware that some users might feel left out. That’s why Uniswap decided to leave future decisions about further distributions to UNI holders, Adams said, in part because it is hard to distinguish actual users from the many bots who also use Uniswap at a remove.

Additionally, there’s no way to know how many users of the 15 applications listed on the governance proposals may have already received the airdrop because of interacting with Uniswap directly through another wallet.

SpankChain CEO and MolochDAO summoner Ameen Soleimani wrote on the Uniswap forum that the proposal illustrates what a dangerous time-suck governance disputes can become.

“The outcome is also fairly zero-sum,” Soleimani wrote, adding: 

“1) it doesn’t create any wealth for UNI holders, it 2) takes UNI from the treasury that could be spent on other things and 3) gives it to folks who will likely sell it, probably having a small negative price impact.”

The debate has caused an emerging class of protocol politicians to weigh in on the matter.”I would like to see this gigantic stimulus package-like situation, where we are going to fund 15 or 20 different projects, to be reframed like a development grant on an individual basis,” one such blockchain populist, Hiturunk, leader of the Penguin Party, said during the call with Hollander.

Disclosure

Source: https://www.coindesk.com/uniswap-dharma-governance-vote-uni-airdrop

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Binance Might Delist Many Low-Volume Coins Soon, CZ Hints

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Binance is the world’s largest cryptocurrency exchange by means of daily trading volumes. In the few short years since its launch, the venue went on to become a leading company in the industry.

In fact, launching coins up for trade on the exchange has created the so-called “Binance Effect.” In short, when a cryptocurrency is selected and launched for trading on the platform, its price usually undergoes a substantial surge.

Now, the CEO of Binance, Changpeng Zhao, has hinted that it may start delisting low-volume coins.

Low-Volume Coins May Kiss Binance Goodbye

In an interesting Twitter thread, a popular cryptocurrency analyst and trader RookieXBT suggested delisting all coins on Binance that “do less than 10 BTC of daily volume.”

Expectedly or not, the CEO of the exchange engaged in the thread, providing a hint that they might consider doing so.

“I think it is a good idea. If you are on Binance and still have no volume, then…” – Said CZ, perhaps hinting that there’s something inherently wrong with coins listed on Binance and failing to generate big daily volume.

Naturally, there are two sides to this debate. Some users think that the merits of a coin shouldn’t be valued based on the volumes it generates on cryptocurrency exchanges. People argue that they hold a coin for the long-term and don’t really care about the daily volume.

This is most definitely true. The inherent merits of a cryptocurrency are most definitely not associated with it being listed on a certain exchange, be it Binance. So, a logical question pops – why would someone care if the coin is listed or not, presuming they are “in it for the technology”? And this is where things take a twist.

The Other Side of the Story

At this point, it becomes rather clear that this particular narrative doesn’t stand on solid ground because people are obviously concerned about the price, perhaps even more so than the technology itself.

If an investor is holding a cryptocurrency for the long run, it being listed on Binance shouldn’t make a difference. But that’s usually not the case – people are rarely “in it for the technology” despite what they might claim.

The main concern is that if Binance decides to delist low-volume cryptocurrencies en-masse, this might cause a larger upset in the market because of the “Binance Effect.”

As we mentioned before, when a cryptocurrency is listed on Binance, it usually goes through a substantial increase. However, the opposite is also true. Last year, the exchange delisted Bitcoin SV, and it tanked more than 10% on the news. That’s just one example.

In any case, there’s no formal confirmation, and it remains interesting to see whether the exchange will really start delisting coins based on low volumes.

Featured image courtesy of Medium

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Source: https://cryptopotato.com/binance-might-delist-many-low-volume-coins-soon-cz-hints/

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Fidelity’s Crypto Subsidiary Targets Asian Investors To Buy Bitcoin

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  • Fidelity Digital Asset Services (FDAS) has partnered with Stack Funds to enable Asian investors to purchase and store cryptocurrency assets more freely and securely. 
  • Based in Singapore, Stack Funds is a regulated fund manager focusing on Bitcoin and other digital assets.
  • According to the Bloomberg report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. The company outlined that the Asian market has been continuously growing in demand towards the cryptocurrency industry, especially from high-net-worth investors and family offices.
  • Stack further explained that all assets under its management will be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  
  • Stack’s co-founder, Michael Collett, said that Fidelity’s involvement will enable its company to attract even more investors from the region. 
  • On the other hand, Christopher Tyrer, head of Fidelity Digital Assets Europe, believes that “there’s a critical need for platforms which have a deep understanding of what local and regional investors are looking for.” However, he admitted that the digital asset space has “historically lacked” such platforms. 
  • After its success in the US, Fidelity Digital Assets expanded its cryptocurrency services to Europe last year. The company aims at entering the Asian market as well now with the Stack Funds partnership. 
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Source: https://cryptopotato.com/fidelitys-crypto-subsidiary-targets-asian-investors-to-buy-bitcoin/

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