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Can Introduction of Crypto Regulations Advance US Crypto Market?

  By David Drake   The cryptomarket has been experiencing high volatility in recent months. It has also been prone to risks such as scams, fraud, cyber attacks and price manipulation – mostly targeted towards crypto exchanges. Previously, government agencies have explored ways to identify risks related to cryptocurrency use in illegal activities. At the beginning of 2018, New York Attorney General noted that crypto-exchanges are susceptible to manipulation and lack measures to safeguard consumers from these risks. Consequently, there have been calls for stricter regulation to curb this practice by various stakeholders. Taking Action In a bid to curb price manipulation in the cryptocurrency space, legislators introduced two bipartisan bills to the US Congress. The first bill, U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, aims at identifying how price manipulation occurs to inform action on ways to prevent further manipulation. On the other hand, the second ... Read More »

US Congressmen Introduce Bipartisan Bills to Eliminate Crypto Price Manipulation

  By David Drake   The need for closer scrutiny of cryptocurrencies, in the face of a strict regulatory environment in the US, has seen Congress develop a contingent solution. In the early days of December, 2018, two members of the US Congress introduced a bipartisan bill proposing elimination of crypto price manipulations. The ability to set and affect pricing in the nascent crypto market has led to increased volatility characterised by sharp price fluctuations. This has created uncertainty in the market, keeping  institutional investors – one of the key groups necessary to validate digital assets – at bay. The two legislative bills put forward by Darren Soto and Ted Budd, are dubbed, ‘U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018′ and ‘Virtual Currency Consumer Protection Act of 2018′ respectively. Until the SEC makes a definitive ruling on an operational definition for digital assets and creates an environment ... Read More »

How Proposed US Crypto Regulation Could Tackle Market Manipulation

  By David Drake   In an ideal situation, markets need to be competitive where there are many buyers and sellers so that no single player can dictate or influence prices. This helps in creating public confidence, resulting to increased trade and efficiency in transactions. But this is not always the case. Due to the urge to make super profits, market players have use numerous manipulation methods to fulfil their needs by selecting players. In traditional markets, regulators have ensured that there are systems in place to monitor, investigate and identify market manipulation efforts with a view of prosecuting individuals involved. Trading Gap In the nascent cryptocurrency market, price manipulation is increasingly becoming an issue of concern and systems need to be put in place. Since the market does not have a  regulation on market manipulation, there are contradicting reports from various stakeholders on this matter. It is important to ... Read More »

What is Potential of the African Cryptocurrency Market?

  By David Drake   As the interest in blockchain grows around the world, Africa as a continent is progressively embracing cryptocurrencies in various sectors. Just recently, Binance Exchange, a facilitator of crypto transactions, began operations in Uganda. This move came as a surprise to many in the crypto industry, and has since generated the interest of among other exchanges. Soon after Binance’s entry, Luno, a London crypto-based company, set its eyes on Uganda. The company already has a regional headquarter in South Africa and is aiming at changing the financial industry and improving trading through the banking sector. This interest by Luno and Binance, shows the potential of the African market in adopting blockchain technology and cryptocurrencies. Key Drivers Several factors have led to the growing interest of crypto companies in Africa and money transfer is one of them. The high cost of transferring and converting money across borders ... Read More »

What Caused the Recent Sharp Decline of Crypto Market Capitalization?

  By David Drake   The cryptocurrency market by its nature is unpredictable and has recently experienced a major downfall. By close of 2017, the value of Bitcoin and Ethereum rose to the highest point with Bitcoin reaching a high of almost $20,000. This high value of Bitcoin caused some countries to introduce cryptocurrency regulations to curb speculation in the industry. This, however, has not been the case in 2018. Trading in digital assets has been below those recorded in 2017 and have deteriorated further in the recent past. The total value of Bitcoin dropped significantly as its price dropped to below the $4000 mark last month. Its fall has had an adverse effect on the crypto market, triggering a drop in the value of other digital currencies to their lowest point ever. Key Triggers The cause of the cryptocurrency price crash may be difficult to pinpoint but several factors ... Read More »

How HTC’s Blockchain-based Phone Excludes Non-Crypto Holders

  By David Drake   The recent IMF report that showcased the various other ways blockchain technology can be used has inspired the mobile technology industry which has led to the HTC launching of the Exodus 1 Model smartphone late in October 2018, which comes equipped with its own crypto-safe feature. There is, however, one major drawback – this phone can only be purchased with cryptocurrencies. This new model is part and parcel of the new face of HTC, which aims to make intellectual and property software its top priorities. The Exodus 1 is HTC’s flagship brand under a new blockchain-focused drive. The phone manufacturer has struggled of late with sales, and sold most of its assets to Google in 2017. With Exodus, HTC has hopes it will usher in a new era of innovation for the company. The Features HTC phones run on android operating systems. However, Exodus 1 ... Read More »

The Real Reason Behind the Crypto Market Nosedive

  By David Drake   Despite aggressive predictions by financial pundits on the expected turnaround of digital coins, the cryptocurrency market hit a major road bump last month when its market capitalization fell by $42 billion. For the first time since inception, this drop landed the already crippling digital market capitalization below the $200 billion mark. At the beginning of the year, the total value of the crypto market stood at $835 billion. The Securities and Exchange Commission (SEC) recently cracked down on the heads of two initial coin offerings (ICOs) that had been accused of breaking the law by engaging in the sales of unlicensed securities. These companies will face a fine and will likely have to provide restitution. This event could send investors running scared, though the reaction by the regulator is hardly a surprise. The Causes Initial interest in cryptocurrencies has been driven by their transparent and ... Read More »

What are Most Possible Causes for the Recent Crypto Market Crash?

  By David Drake   The cryptocurrency industry has just had a major setback in its efforts to regain the highs witnessed by the market in 2017. This is after it experienced one of the biggest market crashes in recent times that saw bitcoin price plummet below the $4000 mark. The crypto market crash was so intense to the extent that, in just about a week, the cryptocurrency market capitalization lost over over $42 billion. As cryptocurrency investors come to terms with the loss and potential investors continue to monitor industry developments from afar, it is important to analyze the reasons underlying this market to crash. Bitcoin’s Influence One key factor behind the crypto market crash is bitcoin’s influence over the market. According to coinmarketcap, bitcoin contributes to about 52% of the total market capitalization. As such, any sharp changes on its price will directly affect the total cryptocurrency market ... Read More »

How London-based Exchange is Tapping Africa’s Cryptocurrency Potential

  By David Drake   Binance has triggered competition on the African continent and Luno, a London-based cryptocurrency platform, is taking up the challenge. Luno announced plans to expand its operations to Uganda just weeks after Binance launched operations in the East African country. Marius Reitz, head of Luno’s South African division promises an aggressive strategy that will target 18 African countries. Luno is already established in South Africa and other regions such as Nigeria, South-east Asia, and Europe. Reitz, however, remains tight-lipped on which countries on the continent will be explored in this new strategy. The Triggers As a continent, Africa – much like the rest of the world, has not remained unaffected by the cryptocurrency movement. In fact, Luno conducted and published a survey that revealed that 69 percent of respondents from South Africa are already aware of cryptocurrencies and 29 percent of those respondents own them. According ... Read More »

Why Africa is Rife for Blockchain Technology

  By David Drake   Active public awareness efforts to make people understand the benefits of blockchain technology and the value in cryptocurrencies seem to be bearing fruit in recent years. This is evidenced by the increasing public interest in the space as well as how governments seem to be engaging with industry stakeholders to create enabling environments in their territories. As is the case with any business, crypto-companies need to start exploring the next frontiers for expansion and take advantage of new opportunities the technology creates. Just weeks after Binance launched in Uganda, Luno, a London-based cryptocurrency platform, announced plans to expand to the African market by setting up its regional office in Johannesburg, South Africa. But what factors could be drawing these cryptocurrency platforms to the continent? Insufficient Infrastructure Africa has been experiencing numerous challenges due to the lack of adequate infrastructure in numerous sectors of the economy. ... Read More »

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