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Author Archives: David Drake

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Can Global Brands, Starbucks and Amazon are Bridge the Gap between Crypto and Traditional Financial Ecosystems?

Can Global Brands, Starbucks and Amazon are Bridge the Gap between Crypto and Traditional Financial Ecosystems

By David Drake Last week, two world-known U.S. brands – Amazon and Starbucks – alluded to plansto  either integrate virtual currency or blockchain technology in their corporate models. LendEDU queried 1000 Amazon clients on whether they would use the ‘Amazon Coin’ if the company was to  launch it.. Results showed that more than 50 percent of the participants said they would. On the other hand, Howard Schultz, Starbucks Chairman, commented that blockchain will most possibly be the backbone of their integrated app in the near future. A growing market If these two brands push through with these plans, this will lead to an increase in users within the cryptocurrency space. 2017 data from Statista shows that Starbucks’ global revenue stood at $22.39 billion and the number of stores at 27,339 globally.  . The revenue of the company and its stores have increased annually in the the past 10 years, except in 2009. Similarly, Amazon’s reach ... Read More »

Will the Rising Number of Ripple’s xRapid Trials Boost XRP Value

Quantitative comparison between alternative and traditional finance | PIXABAY.COM

by David Drake Ripple, a company based in San Francisco, had a difficult start in 2018. The virtual currency, XRP, has lost about 70% of its value since the start of the year due to the wide cryptocurrency crash that took place in January. But things are now looking up for XRP as the list of financial institutions, including banks, that are testing Ripple technology continues to increase. Woori Bank in South Korea is among the new banks that have completed tests on cross-border transactions on the Ripple blockchain platform. Media reports show that the bank, through its Digital Strategy Department, plans to commercialize the XRP platform even as it launched the second trial phase. XRP Boost This development comes just weeks after Western Union confirmed that it was testing the Ripple money transfer technology. Andrew Hacker, Founder of Thought Network Ltd, says, “The market for remittance payments is estimated ... Read More »

3 Factors Boosting Ripple’s XRP Value

3 Factors Boosting Ripples XRP Value

By David Drake Following last week’s price plunge, Bitcoin and other cryptocurrencies are beginning to recover. However, the road to recovery has not been smooth, it’s filled with ups and downs.  Just this past Monday we saw the prices of all crypto coins drop by at least 10% based on CoinMarketCap data. At the time of writing this article, the price of Bitcoin was $11,360 while Ethereum was trading at $1061. This was after the two leading currencies recovered from a drop that saw Bitcoin trade slightly above the $10,000 mark and Ethereum below the $1000 mark on Wednesday. An Inevitable Pullback Some cryptocurrency players feel that last week’s crash was somewhat inevitable. This is largely due to the different factors that seemed to work against the market. According to  Logan Golema, Chief Technology Officer at Anthem Gold, the exit by Bitconnect and impending cryptocurrency regulation by South Korean and Chinese ... Read More »

How Cryptos Can Complement Conventional Monetary Systems for Governments

How Cryptos Can Complement Conventional Monetary Systems for Governments

  By David Drake Cryptocurrencies continue to dominate the financial market, particularly after their explosive growth in 2017. As such, they have attracted the attention of central banks in different countries. Towards the end of 2017, central banks in seven leading economies, the G7 countries, indicated that they would start acquiring cryptocurrencies for purposes of strengthening foreign reserves. Coming at a time when investing in digital currencies was a preserve of tech savvy investors, the move by central banks was largely viewed as a win for virtual currencies by most industry players. Owning Virtual Currencies In some countries, central banks have gone a notch higher and have started considering development of their own digital currencies. Riksbank, Sweden’s central bank, has already started to explore possibilities of introducing a virtual currency known as eKrona. Russia is also looking into the possibility of introducing cryptocurrencies in the country. The Russian government has ... Read More »

Three Reasons to Invest in Bitcoin this Year

Three Reasons to Invest in Bitcoin this Year

by David Drake During the last 12 months, the price of Bitcoin increased from $1000 to almost $20,000. However, last month, the value of this leading cryptocurrency plunged below the $6,000 mark, a demonstration of its high volatility. The unpredictable nature of cryptocurrencies, coupled with their high volatility, has raised questions regarding whether or not they’re worth investing in. “I strongly believe that investing in Bitcoin is still a wise choice,” Alessandro Cadoni, co-founder of says. According to him, Bitcoin and the cryptomarket will remain solid for years to come. “If it is true that it isn’t a pioneering move anymore, I think that there is still potential in Bitcoin and a market which will remain a solid reality in the years to come,” he adds. Cadoni isn’t alone in thinking that investing in Bitcoin is worthwhile. Many other cryptocurrency players believe in the cryptocurrency market. Mojtaba Asadian, founder ... Read More »

The Real Reason the SEC is Cracking Down on ICO Companies

The Real Reason the SEC is Cracking Down on ICO Companies

By Michael Hull Chief Editor, FamilyOffices.Today US financial regulator, the Securities and Exchange Commission (SEC), has launched a major crackdown on initial coin offerings (ICOs). Recent reports show the regulator has already issued subpoenas to various ICO companies and their advisors. The SEC’s action comes about a month after its Chairperson, Jay Clayton, promised sanctions for firms that do not comply. On several occasions, Clayton had stated that most ICOs need to register with the SEC because, like other securities that the agency regulates, they trade coins in secondary markets. However, ICO companies have shown reluctance in subjecting themselves to SEC’s oversight despite the fact that up to $8.7 billion has been raised through ICOs, based on CoinDesk data. “The SEC typically sends a subpoena for one of two reasons – you are either a direct target of a new or ongoing investigation or you are involved somehow with an ... Read More »

Why Companies Get Subpoenaed and How to Avoid It

Why Companies Get Subpoenaed and How to Avoid It

By Michael Hull Chief Editor, FamilyOffices.Today At least 80 individuals and companies involved in initial coin offerings (ICOs) have recently received subpoenas from the US financial regulator, the Securities and Exchanges Commission (SEC). This is the latest move by the SEC to rein in on ICOs that saw companies crowdsource upwards of $5 billion in 2017 alone. ICOs have become a popular way for online projects to raise capital without the help of venture capital or selling stock. Funds are raised through the creation and sale of virtual currencies using rules that are similar to popular cryptocurrencies, as Bitcoin. The Purpose of Subpoena According to a New York Times post, the regulator started sending out requests for information to ICO companies last year and has continued to do so in recent months. The SEC is also sending information demands to lawyers and advisory firms that have supported ICO companies to ... Read More »

Why Sound Legal Advice is Critical for Subpoenaed ICO Companies

Why Sound Legal Advice is Critical for Subpoenaed ICO Companies

By Michael Hull Chief Editor, FamilyOffices.Today Mid last week, the Wall Street Journal reported that the US regulator, the Securities and Exchange Commission (SEC), had sent out information requests and subpoenas to a number of tech companies involved in the multi-billion cryptocurrency market. According to the news website, the regulator is exploring ways to structure initial coin offerings (ICOs), which, to date, are not regulated heavily like public offerings. The regulatory authority issued subpoenas to companies and advisors that are behind offerings it believes could be breaking laws of security. Though the move by the SEC has sent shockwaves in the industry, some cryptocurrency players feel the regulator has a duty to protect investors. “The SEC has a responsibility to protect American citizens particularly when it comes to investing in a new unregulated space,” notes Pete Mardell, founder and CEO of TriForce Tokens. Is SEC’s Move Justified? “Absolutely, I have a ton of ... Read More »

How Russia’s ICO-hub Will Increase Investor Voice in Implementation ICO of Projects

How Russias ICO-hub Will Increase Investor Voice in Implementation ICO of Projects

by David Drake Reports on Russia’s media platform, Izvestia, indicate that the country will be launching a system called ICO-hub to guarantee investments in initial coin offerings (ICOs) this year. The system will be developed in partnership with several players including the Globex Bank, an auxiliary of Vnesheconombank (VEB), a bank owned by the government, CrowdHub platform and Russian Association of Cryptocurrency and Blockchain (RACIB). Alexander Mineev, the head of remote banking service and e-commerce development at Globex, says the ICO-hub could be ready for trials as early as this month. Investor Voice If launched successfully, ICO-hub will allow investors to monitor how ICOs implement their projects and decide on whether funds raised should be transferred to them or projects liquidated and remaining funds redistributed to investors. While this move will guarantee security of investor funds, ICO companies fear that it could work against them because ordinarily, a wide range of investors may not understand complex ... Read More »

Does Russia’s Investment Guarantee System Vest Too Much Power on Investors?

Does Russias Investment Guarantee System Vest Too Much Power on Investors

By David Drake A Russian network of banks, associations and blockchain platforms is set to develop a system for guaranteeing the safety of investments made in initial coin offerings (ICOs). Once in place, the system will enable investors to monitor implementation of the ICO projects they finance. Via a voting procedure, the system referred to as ICO-hub will give investors a voice in deciding whether or not the projects should continue based on the progress made in implementation. ICO Concerns Though many ICO companies acknowledge that the concept of ICO-hub is indeed innovative, they have raised concerns on the risks and gaps that the system does not address. On his part, Thomas Meredith, CEO of Bitminutes, feels the system gives more power to investors to oversee the use of ICO. He, however, notes that those who invest in ICO projects are not in the best position to determine how viable the ... Read More »

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