Tag Archives: crypto

This is Why Colorado Signed the Pro-Blockchain Digital Token Act

This is Why Colorado Signed the Pro-Blockchain Digital Token Act

That the crypto wave is sweeping across the US is true. From presidential candidates from both sides of the divide supporting cryptocurrencies and accepting Bitcoin or ETH donations, tthe once demonized coin now stands to be in held in the same breath as the USD. Well, after a disastrous Non-Farm Payment Roll came in at just 20,000 crashing expectations of 180,000, something has to be done—quickly. A slowdown in job creation points to a weakness in the overall economy but there is an open window where blockchain and crypto provide endless opportunities.

To that end, Colorado is following the Wyoming route and with the ever vibrant, pro-blockchain Governor Jared Polis signing the Digital Token Act on the Friday of Mar 8, he heralded a new era where blockchains are free to roll their products aware that they are except from the state’s security laws unless otherwise.

Similarly, liquidity creators as crypto broker dealers and salespersons need not to be licensed under limited circumstances. The question now is, why is the state taking such a drastic and news grabbing decision? Is Jared seeing an unexploited opportunity that places his state ahead of the pack? From what we can glean, the decision was taken after the state’s general assembly determination.

Reason for Signing the Digital Token Act

After extensive commenting and deliberation, the state find that:

  • Crypto-economic systems operating off decentralized platforms form an important component of the blockchain technology. In turn, blockchain as a technology has the potential to create the web 3.0 which obviously has several advantages over existing internet systems.
  • Because of the advantages of blockchain and crypto-economic systems, Colorado is increasingly becoming a hub for blockchain companies. As a result, there is need to open up funding channels for these projects and the fastest way of doing that is to reduce consumptive regulatory requirement under Article 51.

Since the advantages of restricted market investment are many and outweighs the “costs and complexities of state securities registration”, there is need to eliminate regulatory uncertainty especially for Colorado businesses keen on utilizing blockchain and issue utility tokens.

“hereby promoting the formation and growth of local companies and the accompanying job creation and helping make Colorado a hub for companies that are building new forms of decentralized “web 3.0″platforms and applications.”

Applicable Rules for Exemption

However, there are rules for exemption, clear for token issuers. They include:

  1. The issuer must file a notice of intent with the SEC
  2. Token must be a utility, used for consumptive purposes
  3. The token must not be marketed in any way or used for speculation
  4. The token must be rolled out and find use within six months after initial sale or transfer
  5. Buyers must provide proof that they are buying the tokens for use and not for speculation
  6. Initial buyers must not transfer the token until after 180 days have elapsed

The act will be enforceable beginning August 2 and it is clear that not only is the Governor keen on creating new jobs but wants to create a blockchain hub out of Colorado where investors can legally invest in crypto projects. It also came as a surprise because not long ago, the SEC filed 12 cases against blockchain projects after the ICO Task Force determined that they fraudulently raised funds.

Original article written by Dalmas Ngetich and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Ripple CEO Brad Garlinghouse Questions JPM Coin Usability

Ripple CEO Brad Garlinghouse Questions JPM Coin Usability

Brad Garlinghouse, CEO of blockchain-based startup Ripple, has once again called into question the purpose of the JPM Coin.

In mid-February, Wall Street giant J.P. Morgan Chase announced plans to create the JPM Coin, a pseudo-stablecoin that would function to improve its internal payment network. Following the announcement, some analysts were quick to say that the JPM Coin would be a death sentence for payment protocol competitor Ripple. However, Garlinghouse fired back at his detractors, making the claim that banking coins “still aren’t the answer,” and that JPM Coin “misses the point.” Garlinghouse went on to compare the announcement by J.P. Morgan as similar to that of AOL and Netscape, with the bank predictably reneging its stance on cryptocurrency, albeit in a clumsy way.

On Mar. 6, speaking in an interview at the 4th Annual Washington D.C. Blockchain Summit, Ripple’s CEO continued to share more of his thoughts on J.P. Morgan’s stablecoin project. Specifically, Garlinghouse honed in on the lack of interoperability in a JPM Coin, i.e. that a rival bank such as Morgan Stanley or Citigroup would be unable to benefit from the internal payment network created by J.P. Morgan, thereby limiting its appeal,

“This guy from Morgan Stanley was interviewing me last week, and I asked him, so is Morgan Stanley going to use the JPM Coin? Probably not. Will Citi use it? […] Will PNC? And the answer is no. So we’re going to have all these different coins, and we’re back to where we are: there’s a lack of interoperability.”

Given the lack of reach that an internal payment stablecoin would have beyond J.P. Morgan clients, Garlinghouse questioned the purpose of developing the project at all. According to Garlinghouse, the bank would be better of just using the U.S. Dollar, and implied that JPM Coin fails to provide any real-world solution,

“Let’s think about this. [JPM] announced the JPM Coin for institutional customers. If you give them a dollar as deposit, they’ll give you a JPM Coin, that you then can move in the JPM ledger. Wait a minute, just use the dollar! I really don’t understand […] what problem that solves.”

Last week, Binance Research published a new report contending that J.P. Morgan’s stablecoin would be unlikely to compete with Ripple or XRP, and cited the lack of interoperability between institutions as a serious drawback to the coin’s adoption. While Garlinghouse’s comments echoed much of the same as Binance’s researchers, the CEO did concede that JPM Coin could boost the popularity of cryptocurrency. Despite J.P. Morgan’s Chief Executive Jamie Dimon having a negative stance towards Bitcoin and cryptocurrency over the years, Garlinghouse pointed out that JPM Coin represents a shifting landscape for banks,

”for the blockchain and crypto industry to have players such as JPM leaning in…That’s the one good thing I’ll say about this.”

As previously reported by EWN, the last two weeks have been a roller coaster ride for both Ripple and the XRP coin. While XRP was able to make its way onto popular U.S.-based exchange Coinbase, the price movement aftermath left investors disappointed. In addition, the parent company Ripple was accused by some community members of paying for the coin listing. However, on Monday, the San Francisco-based blockchain company was named a Top 20 place to work in the Bay Area, and represented the only blockchain or crypto-based company to make the cut.

Original article written by Michael Lavere and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Crypto Mixed Elon Musk Endorses Bitcoin

Crypto Mixed; Elon Musk Endorses Bitcoin

Investing.com Feb 19, 2019 11:24PM ET


Image © Reuters

Investing.com – Prices of major digital coins were mixed in Asia on Wednesday without a directional mover, but Tesla (NASDAQ:TSLA) CEO Elon Musk saying Bitcoin is “brilliant” and “paper money is going away” created some buzz in the crypto space.

On Tuesday in an interview on advisory services firm ARK Invest’s podcast, Musk said “Bitcoin’s structure is quite brilliant” and digital currency is “a far better way to transfer value than pieces of paper.”

But he also noted that “one of the downsides of crypto is that computationally it is quite energy intensive.”

Musk tweeted about Bitcoin last year, prompting many to wonder if his electric car company would have crypto-related plans. But Musk clarified that it would not be a good use of the resources of his company to get into this area.

The crypto space remained fairly quiet on Wednesday morning. Bitcoin was only up 0.79% to $3,916.9 by 11:02 PM ET (04:02?GMT).

Ethereum slid 2.47% to $142.85, while XRP slightly added 0.82% to $0.32542 and Litecoin gained 0.38% to $47.525.

The market capitalization of all cryptocurrencies rose further to $133.4 billion from $120 billion last Friday.

Meanwhile, JPMorgan’s launch of its own digital token JPM coin could change the banks’ approach to blockchain and crypto, according to CNN. Param Vir Singh, a professor of business technologies at Carnegie Mellon University, told CNN that “more banks will take [crypto] seriously” as JPMorgan’s move could force other banks to follow suit.

Last week, the news of JPM coin shook the crypto industry as the investment bank’s CEO Jamie Dimon once called Bitcoin a “fraud”. The move signified a shift in the U.K. bank’s approach to crypto.

Article written by and posted on the Investing.com website.

Article reposted on Markethive by Jeffrey Sloe

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Is JPM Coin A Serious Threat To Ripple?

Is JPM Coin A Serious Threat To Ripple?

Frances Coppola, Senior Contributor
Banking & Insurance
I write about banking, finance and economics.

On February 14, the giant bank J.P. Morgan announced plans to issue its own digital “coin," to run on its in-house Quorum blockchain. The coin will be pegged 1:1 to the U.S. dollar, with J.P. Morgan using the considerable heft of its balance sheet to guarantee the peg, so will not suffer the wild fluctuations in value that can make cryptocurrencies unreliable for payments. It is thus what in the crypto world is known as a “stablecoin”, not a cryptocurrency – a digital token that represents a fiat currency.

Exactly what impact “JPMCoin” will have on the cryptocurrency landscape is unclear. Opinion is divided between those who think that JPMCoin is a serious threat to Ripple and, to a lesser extent, Bitcoin and Ethereum, and those who think it is a non-event. Who is right?

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JP Morgan logo is seen on an android mobile phone. Photo credit: LightRocket via Getty Images GETTY

Well, it all depends how the coin is used, and who uses it. In a useful Q&A, Umar Farooq, J.P. Morgan’s head of Digital Treasury Services and Blockchain, explains how J.P. Morgan’s customers would use the coin:

"When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time."

This sounds much like Ripple’s xRapid, which uses the cryptocurrency XRP as a bridging currency. To send money using xRapid, a customer exchanges fiat currency for XRP, the XRP is transferred, then the recipient redeems the XRP for fiat currency. The difference is, of course, that XRP is not a stablecoin. It is a traded instrument whose price can – and does – fluctuate widely. In today’s fast FX markets, the price can change even in the 3-4 seconds that it takes to execute the payment. J.P. Morgan is clearly promoting its coin as having exchange rate stability that XRP, like other traded coins such as Bitcoin and Ethereum, does not have. So is J.P.Morgan trying to kill xRapid?

It’s not immediately apparent that this is its goal. Firstly, JPMCoin will – at least to start with – only be used for payments entirely in U.S. dollars, unlike xRapid which can handle multiple currencies and cross-currency payments. Secondly, JPMCoin is – again to start with – only available to J.P. Morgan’s institutional clients. They can use the coin to send money between themselves, but not to retail customers or to non-customers. It’s thus a very limited enhancement to J.P. Morgan’s in-house payment rails.

This tends to support the argument that JPMCoin is merely marketing hype. After all, payments between J.P. Morgan’s customers are really only transfers across its own books. It seems a bit sad that cash-strapped IT departments have to say "look, it's blockchain" to persuade board directors to throw some money at settlement plumbing, always a pariah compared to fancy front-office systems. But from the point of view of J.P. Morgan’s customers, this is simply a long overdue improvement to the bank’s extremely expensive and very clunky cross-border payments systems. As Farooq observes (quoted in CoinTelegraph), this could be particularly beneficial for a large institutional client with overseas subsidiaries, which at present can only move money around its organization using external payment rails:

"Money sloshes back and forth all over the world in a large enterprise. Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it."

It's completely ridiculous that customers of J.P. Morgan have to use SWIFT and Fedwire to move money around within their own organizations. J.P.Morgan should have sorted this out long ago. As should other major banks.

Nevertheless, JPMCoin is a slap in the face for Ripple. Brad Garlinghouse, Ripple’s CEO, is on record as saying he expects “major banks” to adopt xRapid, along with the XRP token, in 2019. Now, J.P. Morgan – unquestionably a major bank – has told Ripple “no way are we using xRapid or XRP.” And it doesn’t mean only for internal transfers. The bank’s Q&A says it intends its coin eventually to be used for payments in multiple currencies and across other blockchains. That would make it a solution for cross-currency payments to non-customers – exactly the market that Ripple is aiming for.

Even if the coin remained limited to J.P. Morgan’s institutional clients, JPMCoin would still threaten Ripple’s plans. According to J.P. Morgan’s Farooq, “pretty much every big corporation is our client, and most of the major banks in the world are too.” The U.S. dollar is used for the majority of global transactions. If JPMCoin can corner the market in U.S. dollar transactions between most of the world’s large corporations and major banks, where does that leave Ripple?

Even before JPMCoin hit the news media, Ripple's plans to recruit major banks looked over-optimistic to the point of incredulity. Major banks currently control international payments. Why would they hand that privilege over to a third party, when they could develop their own blockchain-based payments network? And the need for such a network to facilitate payments between customers of different banks is no obstacle. Banks will cooperate when it is in their interests to do so. Indeed, that is how SWIFT came to be, and the FX bank CLS, and in the UK, the LINK network of ATMs. So it's entirely possible that banks might cooperate to create their own blockchain-based international payments network. In a particularly nasty twist of the knife, the major banks could even use Ripple's own innovation.

Ending Ripple’s dreams of world domination, and those of other digital coin issuers, might therefore be exactly what J.P. Morgan has in mind. It will be interesting to see how this little stand-off develops.

Original article written by Frances Coppola and posted on the Forbes.com site.

Article posted on Markethive by Jeffrey Sloe

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‘Forbes’ Launches Blockchain Newsletter Aimed At Potential Crypto Investors

'Forbes' Launches Blockchain Newsletter Aimed At Potential Crypto Investors

by Melynda Fuller , February 13, 2019

Earlier this year, Forbes began to send a new premium-subscription digital newsletter called Forbes CryptoAsset & Blockchain to select Forbes customers with the intent of deepening its blockchain coverage and further establishing itself as a voice in the field.

The newsletter is edited by Jack Tatar, an investor and co-author of “CryptoAssets: The Innovative Investor’s Guide to Bitcoin and Beyond.”

Forbes’ stable of journalists will contribute to the monthly publication, interviewing notables from the field like Ripple’s CTO David Schwartz, cofounder and CEO of Zcash Zooko Wilcox, and Morgan Creek Capital’s Mark Yusko.

The newsletter costs $595 a year or $195 a quarter, and is not supported by advertising.

“This newsletter is geared toward educating potential investors in blockchain and crypto, and the goal is to provide actionable and profitable advice,” Matt Schifrin, vice president and managing editor of Money & Markets at Forbes, told Publishers Daily.

“It builds upon Forbes’ broader coverage that covers news, technology insights, crypto game changers, enterprise blockchain and issues important to crypto traders.”

According to Schifrin, Forbes began to establish itself as a leading voice in crypto and blockchain when it launched its first annual Fintech 50 list in 2015. Last year, the outlet hired enterprise blockchain reporter Michael del Castillo to join its budding group of writers covering the beat.

In the coming months, said Schifrin, the outlet will publish its first-ever Forbes Blockchain 50 list that covers the most important companies in the space.

Schifrin said. “As crypto-mania subsides, we believe many of the biggest advances in blockchain technology will come from enterprises that have been quietly embracing this nascent technology.”

Nina La France, senior vice president of consumer marketing and business development at Forbes, reports that early engagement with the first issue is high and retention among the first batch of subscribers is solid. Soon, Forbes will roll out marketing campaigns across email, social, webinars, Forbes.com and the magazine to attract new newsletter subscribers.

Original article written by Melynda Fuller and posted on the MediaPost.com site.

Article posted on Markethive by Jeffrey Sloe

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Crypto Communities How Valuable Are They?

Crypto Communities – How Valuable Are They?

There seems to be some disillusionment about Crypto and Community or to put it more succinctly, “Crypto Community” in the wake of historical events of the past year. 2018 was notorious for ICO failures, ponzi scams, false hype, and FUD. Some are saying Crypto has an ethics problem. More to the point, it could be said it’s some people within the crypto space that have an ethics problem. Just as we’ve seen in the “real world” of fiat currency, banks, governments, and entrepreneurial shysters. For decades this game of greed has been played out leaving scores of victims.

We have seen the profiteering with this nascent industry at the misfortune of others. Also, startups have been too quick to launch an idea with no real thought or products to underpin it. The idea that the larger their community the more valuable the coin does nothing for sustainability. With that mindset and no real product, gives rise to pump and dump scenarios which result in the coin losing value, and rarely, if at all, recovers.

Airdrops have been initiated to increase awareness and customer base only to find the majority dump their coins at the first available opportunity. Some of it’s the” get rich quick” mentality and “pump & dump” culture that has been created but apart from that and of course, the technology getting into the wrong greedy hands, what else are these ICOs doing wrong to result in failure?

2018 was the Year of the Cryptocalypse

We need to turn this culture around and treat it like it was meant to be treated as stated by the founder of Bitcoin, Satoshi Nakamoto 10 years ago. All companies need a product or a purpose that is needed and sought after by the community. They cannot ride on the coattails of what their coin might be worth just due to its initial popularity.

Last year will go down in history as the crypto apocalypse, this year will be the year of the cuts. There are good things happening behind the scenes with crypto and blockchain technology. This industry has made its mark and here to stay. The companies who have survived last year and continue to grow this year will be ones of integrity and substance. All others will fall away.

The Crypto Industry Is Growing Up

Considering much of the “real world” is online these days with Entrepreneurship classed as a real occupation there are some companies that offer real products to real clients. Blockchain Technology is being implemented in many industries, not just in finance, but in health, logistics and now social & market networks and as a result, freeing the broader society from the antiquated hierarchy of today.

In the case of cryptocurrency, it has its place in the world of ecosystems. Particularly helpful to the unbanked. Trading in crypto is only a sideline gig for enthusiasts, even though it’s perceived to be in the forefront and the only thing crypto is meant for. What is evolving in the real-world is an ecosystem where crypto is fluid and can have real value providing there is a product fit and the Ideology is one of integrity.

For the viability of any crypto business ecosystem, there needs to be Community, Technology, and Liquidity. Digital money viability is established through the interaction between these three groups within the ecosystem. There is no viability if these interrelated groups do not exist.

Airdrops do have their Place in Successful Startups

Paypal executed an incentive to attract more customers back in the beginning as do many businesses with loyalty programs. Crypto-based businesses can have the same success with a utility or consumer coin that adds value to the experience of the user. If introduced correctly, with products and services underpinning the system, there is enormous growth potential where its customers use the products and are rewarded for using them. This creates loyalty and a community is built. The coins are part of the ecosystem, not the pinnacle. But who does that? Is this just a future concept? No, It’s here now with Markethive.

The Next Generation

As I said earlier, much of the real-world operates online and Entrepreneurs are now classed as having a real occupation. Markethive was born with that in mind, but since the advent of the latest technology, it has gone one step further and is now built on the blockchain with its own coin. (MHV) Markethive has just completed its first airdrop with micropayments and tips now active within the system. There are many happy campers within the community…

Markethive Associate, Ven Dance states,

“One way that companies that are sincere in their desire to provide the crypto community a legitimate opportunity to improve their lives and benefit in the crypto market place is to have real, tangible products and or services in place and ready before offering public financial participation. Companies that have “real” services and products are now utilizing the ILP (Initial Loan Procurement) Unlike the ICO, the ILP, it is a loan that has to be paid back. What a novel concept, yes it has to be paid back. There are only a few companies that are offering the crypto community this type of opportunity… products, and services that are functional now and are using an investment vehicle that requires the investment to be paid back. MarketHive…Welcome to the real world of crypto evolution and the communities that believe in it and support it.”

Louis Harvey says,

“I think that we all at some point need connection and interaction being real world or a community-based platform! Markethive is providing this typesetting in a secure community with the privacy all being built on the blockchain. How cool is that when you need support of any kind the community base platform is here.”

Richard Mathiason says,

“Markethive is more focused on fixing the problems with present-day social networks. Those problems are privacy issues, security issues, using Inbound Marketing instead outdated forced marketing and making sure that the business platform is not reliant on how well the cryptocurrency “does”. In our case, the cryptocurrency is not being hyped and will only do well if the business proposition is solid. A micro- payment system has been implemented which is also new to social networks. It has only been in place less than a week and it is having a positive effect on the company. Finally, we are not an ICO, we are crowdfunding using ILP’s (initial loan procurement). Markethive has made the community the most important item in the company. And that is why it will succeed!”

Conclusion

Markethive is a predominantly free system that allows freedom of speech, total privacy, and transparency, promoting education for the youth through to the seasoned entrepreneur providing support, network, tools and motivation to experience entrepreneurialism, sovereignty and success resulting in a complete ecosystem with universal income.

Markethive is creating a social network that is integrated with state of the art blockchain, cryptocurrency, and inbound marketing technology. Because Markethive is decentralized, autonomous and controlled by its entrepreneurs and holders of MARKETHIVE, its coin (MHV), will share and benefit from its success.

Blockchain-based Companies like Markethive, derive their profit from the projects that are underpinning it, plus the products and services they deliver, therefore they are able to give back to its users in many forms, including remuneration for using the platform. In essence, they give the power back to the people.

Is the crypto community valuable? Yes, they should be the focal point of any business. They are the lifeblood. Facebook with its current business model is valuable because of its 2 billion users, however, their misuse of data and lack of consideration for their users is questionable.

Keep an eye on Markethive (MHV) It’s a force to be reckoned with. It’s leading edge of the new blockchain, the new Market Networks and the new decentralized solution to the elite big data tyrants like Facebook and Google.

The global financial system and social media are broken and business ecosystems need a better way to do things. With Markethive it’s here.

Original article posted on zycrypto.com

Article posted on Markethive by Jeffrey Sloe

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Ukraine: Economic Development and Trade Ministry Launches State Policy to Legalize Crypto

Ukraine: Economic Development and Trade Ministry Launches State Policy to Legalize Crypto

The Economic Development and Trade Ministry of Ukraine has initiated a “state policy” for the classification and legalization of crypto-related activities, Ukrainian state information and news agency Ukrinform reported Oct. 26.

The Ministry has reportedly issued an official press release stating that its purpose is to “create understandable conditions for conducting activities in the field of virtual assets and virtual currencies," and to usher in “adoption of the concept of a state policy” for crypto.

To this end, it has proposed establishing legal definitions for key terms, including “virtual currency” (“cryptocurrency,”) “virtual assets,” Initial Coin (or Token) Offerings (ICOs or ITOs), cryptocurrency mining, “smart contracts,” and “tokens.”

Ukrinform reports the concept is expected to be implemented in two stages, and will be completed in 2021.

Although Ukraine has not until now regulated crypto, the first signs the country was on track to its legalization surfaced in mid-May, when a member of the parliament, Alexei Mushak, attached a copy of an apparent draft legislation document for crypto to his public Facebook page.

The document outlined that the legislation aims to create a “free and transparent” digital asset market, outlining rules for storing, using, and exchanging crypto, digital tokens, and smart contracts at a state, entity, and individual level.

In mid-September, the country’s parliament proposed a draft bill that, if signed into law, would levy a five percent tax on individuals’ and entities’ crypto holdings. For businesses’ crypto-related profits, it proposed the basic corporate and personal income tax rate of 18 percent.

An alternative bill proposing specific crypto tax exemptions and a slightly different definition of various types of crypto assets was put forward by a Ukrainian legislator in early October.

As of mid-October, a dedicated working group within the Ministry of Finance has reportedly been working to elaborate the framework for crypto taxation.

In parallel, the National Bank of Ukraine (NBU) is considering a state digital currency tied to the local fiat currency, the hryvnia, which would be centralized and remain under government control.

Original article posted on Cointelegraph

Article written by Marie Huillet

Posted on this site by Jeffrey Sloe

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Yale University Investing in 400 Million Cryptocurrency Fund

Yale University Investing in $400 Million Cryptocurrency Fund

More Institutional Money Could Be on the Horizon

Cryptocurrency, Investing–Yale, one of the most prestigious Ivy League universities in the United States, is reportedly apart of the investment group that is helping to raise $400 million for a massive new cryptocurrency fund.

According to a report by Bloomberg published on Friday with information supplied from an anonymous source familiar with the situation, the university is trying its hand in cryptocurrency via the fund ‘Paradigm,’ which is reported to be helmed by Coinbase co-founder Fred Ehrsam, Charles Noyes of Pantera capital, and former Sequoia Capital partner Matt Huang. The Wall Street Journal had previously reported on the departure of Huang from Sequoia, making the move in order to join with Ehrsam in the creation of the new fund.

While this has been the first reported time that Yale has invested into cryptocurrencies on such a massive scale, the school has had its influence felt in a number of different industries, from Puerto Rican bonds to timber in New Hampshire, as reported by Bloomberg. Among the more interesting details listed in the report is the finding that Yale’s $30 billion endowment–the second largest among U.S. educational institutions–has earmarked a whopping 60 percent of its investment capital in 2019 for “alternative investments” which includes, among other things, “venture capital, hedge funds and leverage buyouts.” Added to the list now appears to be cryptocurrency, with a potential for other blockchain enterprises and even promising initial coin offerings (ICOs).

For now, the fund being led by Ehrsam is planning to invest in early stage cryptocurrency-based projects, novel blockchain designs and digital asset exchanges. Given the timing of the report, which comes just days after Coinbase was valuated at a colossal $8 billion–which would make the company one of the most valuable U.S. startups–the landscape of cryptocurrency exchanges appears to be immensely profitable and largely untapped. Earlier in the year, BitMEX co-founder Ben Delo became the youngest self-made billionaire in the history of the United Kingdom. Changpeng Zhao, the active CEO of cryptocurrency exchange Binance, announced that his company was on pace to eclipse $1 billion in profits by the end of 2018, despite it being an abysmal year for the valuation of the crypto markets.

Bloomberg points out that Yale’s $30 billion endowment, managed by David Swensen, is one of the few institutional investors to move into cryptocurrency this year, as the entire market finds itself in a bear cycle that has seen value plummet from the last all time high. Despite the opportunity and overnight fortunes that have characterized much of the last several years for cryptocurrency, institutional investors, on a whole, have been reluctant to put capital in to the markets to the degree that most current investors are anticipating.

The common refrain of “institutional money” is coming will not only signal legitimate interest in both the market and technology of cryptocurrency, but provide a much needed boost to alleviate the ongoing price bleed. Previous analysts, including the Bloomberg article on Yale, have cited a lack of regulation and the potential for widespread market manipulation as the primary deterrent for investing in cryptocurrency. However, with an investor as large and prestigious as Yale, commanding $30 billion in endowment, crypto-based funds might garner more interest even in the absence of a Bitcoin exchange traded fund being approved by the SEC.

Article written by Michael Laverne

Article originally posted on Ethereumworldnews.com

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From Crimefighter to ‘Crypto’: Meet the Woman in Charge of Venture Capital’s Biggest Gamble

From Crimefighter to 'Crypto': Meet the Woman in Charge of Venture Capital’s Biggest Gamble

Kathryn Haun was the Justice Department's go-to prosecutor for Bitcoin-related felonies. Now she's one of cryptocurrency's most important investors. Here's why her career change is a watershed moment.

Debate

“Let’s settle this!” an announcer rumbles over loudspeakers.

The “this” in question is one of the more important business disputes of the moment: Are alternative currencies like Bitcoin the future of financial services or a 21st-century Ponzi scheme? To get resolution, a Mexican data center company called KIO Networks is hosting a debate in a smoke-filled arena in the graffiti-coated Hipódromo Condesa neighborhood of Mexico City. The atmosphere screams lucha libre, the stylized form of Mexican wrestling that features acrobatic moves and dramatic masks.

On this late-September evening, the main event features two intellectual heavyweights from the United States, both highly credentialed, neither wearing disguises. In one corner is Paul Krugman, the New York Times columnist and Nobel laureate in economics. In the other is Kathryn Haun, an accomplished federal prosecutor recently turned venture capitalist.

Krugman’s position is predictable. He sees the rise of cryptocurrency networks—decentralized digital services that run on computerized money like Bitcoin—as an unnecessary throwback to a distant era, when precious metals made up the money supply. “I don’t believe we’re at the dawn of a new age,” he says. He delivers a smackdown on an investment craze that the likes of Jamie Dimon and Warren Buffett have repeatedly pooh-poohed: “I think 15 years from now, it will look a lot like Pets.com.”

Haun sees things differently. To her, virtual currencies and the technologies that underpin them are society’s saviors: a last great hope at reclaiming power gobbled up by greedy banks and Internet monopolists. “Facebook, Amazon, Netflix, Google, they control all the rules,” she says. “They have all the users. They have all the power.” The new technology, Haun argues, allows eager, entrepreneurial developers to compete. She throws her weight behind the democratizing dream of the new technology’s acolytes.

Photo by Christie Hemm Klok for Fortune

Cryptocurrency is “in the dial-up days,” says Haun, “and the critics are confusing the current state of innovation with the end state of innovation.”

Haun largely wins over the crowd, a collection of the megalopolis’s tech elite. And they like her visuals too. At the outset of her talk, five giant screens project the mug shots of corrupt U.S. law-enforcement officials she convicted in her previous career. But the audience isn’t enamored of Haun merely because she once was the sheriff in the Wild West of “crypto.” She excites them because now she’s joined their side. As one of the newest partners of the estimable Silicon Valley venture capital firm Andreessen Horowitz, Haun’s job is to find the next big thing in cryptocurrencies—and to help their founders succeed while staying on the right side of the law.

Haun is making her career shift at a precarious time. Cryptocurrency markets have been in free fall all year. A global speculative mania for virtual coins that sent valuations above $800 billion in January has dwindled to $200 billion. Bitcoin has lost two-thirds of its value, and Ethereum, the second-biggest cryptocurrency, is down 90%.

Haun and her new partners are undaunted. Investment crazes often spawn bubbles. But what’s left after they pop, if the true believers are right, are new industries. Firm cofounder Marc Andreessen, after all, parlayed his work developing the first commercial browser into Netscape, the flawed startup that helped beget the World Wide Web—and many billions of dollars in investment returns for the Internet industry. Haun also is unfazed by her lack of professional investing experience. “For entrepreneurs to want to work with you, they need to think you have some strategic vision, some hustle, and an ability to get the job done,” she says. These are the same skills, she posits, that a prosecutor needs to persuade FBI agents and others to work with them.

Bridging worlds, then, is one of Haun’s chief attributes. “She has this rare blend of having been in government and having a business-centric mind,” says David Marcus, a senior Facebook executive who sat on a corporate board with Haun. Adds Anthony Kennedy, the newly retired associate justice of the U.S. Supreme Court, for whom Haun clerked: “I’m quite reassured that someone with her talents and background would go into this new area.” Her involvement “is a tremendously important link between the law and the cyber age. And she recognizes that.”

A version of this article appears in the Oct. 1, 2018 issue of Fortune with the headline “Jumping The Fence.”

This is just an excerpt; the complete article can be read on Fortune.com

ARTICLE written by Robert Hackett 

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Ripple Leads Coallition To Hire Lobby Firm To Promote Friendly Crypto Policies

Ripple Leads Coallition To Hire Lobby Firm To Promote Friendly Crypto Policies

A significant group of fintechs and businesses related to the industry of cryptocurrencies and blockchain technologies have decided to start a campaign to promote a legal space that is favorable for the development of the crypto-ecosystem.

According to Bloomberg these companies don’t not go by the wayside, and instead of the traditional awareness and promotion campaigns, the group has decided to hire the services of a major law firm to take the fight directly to the legal field.

The group of companies calls itself the “Securing America’s Internet of Value Coalition” and is currently formed by Ripple Labs, the independent foundation Ripple Works, Coil – a fintech that seeks to facilitate payments in the entertainment and digital content industry, Hard Yaka – a firm with large sums of money invested in digital assets – and PolySign – a startup that seeks to provide crypto custody services.

Chris Larsen, executive chairman of Ripple, said in recent months there has been a growing interest on the part of regulatory bodies and lobbies in general towards the issue of cryptocurrencies and blockchain technologies:

“We understand this is really complicated, and there is a lot of misinformation out there … The good news is there is a lot of interest in this topic in D.C.” – Chris Larson

Ripple and Klein/Johnson Group: Bringing Together Laws and Cryptocurrencies

It is also important to note that the coalition has hired the services of Klein/Johnson Group, a “bipartisan lobbying and public policy firm” that in recent years has been working to provide advice on financial and technological services.

Ripple is until now the visible head of the group. The success of its payment solutions has made its XRP token the third most important cryptocurrency in the global market cap.

Ripple’s presence is especially crucial as the Coalition is investing a large amount of money in its mission. According to the report, Klein/Johnson will receive a monthly sum of 25,000 USD plus 10,000 XRP, which will be declared as cash at the time of disclosing the payments received.

In this regard, Chris Larsen, explains that this seeks to generate greater interest on the part of the firm, bringing them a little closer to the ecosystem:

“It gives them some upside and gives them some risk … Hopefully, it gives them a taste of the industry in a way that hits home.” – Chris larson

The coalition has good expectations, especially now that the changes of commissioners within the SEC have helped the organization have a more positive view on the issue of cryptocurrencies, especially regarding the so expected Bitcoin ETFs.

ARTICLE Written by Jose Antonio Lanz and posted on Ethereum World News' website

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