Crypto.com slashes staking rewards as user numbers top 5 million
Prominent crypto exchange and debit-card provider, Crypto.com, has surpassed five million users for the first time. The milestone comes only three months after the platform first exceeded three million users.
Crypto.com has seen accelerated growth since the platform hit one million users in Sep 2019 and tripled its user base over the following nine months.
Crypto.com co-founder and CEO Kris Marszalek said the company plans to continue “aggressively” increasing its user base, noting that the platform is targeting 15 million users “by the end of 2021,” adding:
“Our longer term strategic goal is to reach 100m users in the Crypto.com ecosystem within 5 years.”
Not every one of those five million users are celebrating the milestone, with the news coming hot on the heels of a 70% reduction in staking rewards for its CRO token announced 24 hours earlier.
Users with 5,000 or more CRO (approx. $690) staked for 180 days can now only earn 6% per annum. Prior to the change, users could earn 20% on staked CRO under the same conditions. Disgruntled users have taken to Twitter to voice their opinions, with Twitter user “LtcFanboy” stating:
“I’ve been noticing every time @cryptocom reaches an achievement they cut the limits earning by a massive %. That seems to be their model.”
The company’s large marketing budget is likely a major contributor to Crypto.com’s rapid growth, with the company recently burning seven-figures in a single marketing campaign. The campaign titled “The Syndicate Anniversary Special” offered $2 million in Bitcoin to 25,000 users at 50% off, with an additional $120,000 given away in a Twitter event.
Marszalek explained in a tweet that the high rewards to date were essentially a loss leader to attract users, and needed to be curbed:
“We are working on balancing high growth with becoming profitable, hence recent reductions in incentives to make it sustainable.”
The Crypto.com exchange, launched in Nov 2019, has a current trading volume of only $33 million, according to CoinGecko. It is unclear how many of the five million users use the exchange as opposed to only using the popular debit card feature.
- Bitcoin Has Hit An ‘Inflection Point,’ Predicts Major Twilio, Pinterest, LinkedIn, And Twitch Investor, Bessemer Ventures
- The State Duma Supported The Initiative To Create A Crypto-Ruble.
- A first look at the projects competing for Cardano’s Fund2
- Russian Central Bank Announces Crypto Holdings Limit for Investors
Bitcoin Has Hit An ‘Inflection Point,’ Predicts Major Twilio, Pinterest, LinkedIn, And Twitch Investor, Bessemer Ventures
Bitcoin has been pushed into the limelight in current weeks by quite a lot of high-profile firms investing in the cryptocurrency.
The bitcoin value has soared by way of 2020, climbing over 60% since January, nonetheless, the flood of current groundbreaking announcements has failed to offer bitcoin much of a boost.
Bitcoin has attracted some high-profile buyers and supporters over current months.
“We strongly consider bitcoin will turn into a globally accepted asset class that establishments will more and more search portfolio publicity to given its uneven threat profile, shortage traits, and skill to function a digital retailer of worth,” Bessemer Ventures wrote in a blog post outlining its “thesis throughout the crypto panorama.”
“With the speedy growth of central financial institution steadiness sheets across the globe, bitcoin is poised to function ‘digital gold’ and a hedge in opposition to future inflation,” the put up, authored by 4 Bessemer companions, buyers and advisors, learn.
Bessemer has lately taken half in a $50 million fundraising spherical for New York Digital Funding Group (NYDIG), a subsidiary of New York-based asset supervisor Stone Ridge, Forbes revealed this week. NYDIG, shaped in 2017 to “deliver regulatory-compliant companies to the institutional house,” is the custodian of Stone Ridge’s 10,000 bitcoin tokens, valued at $115 million at immediately’s value.
Bessemer, pointing to digital asset supervisor Grayscale reporting file inflows into its bitcoin fund quarter-after-quarter, now expects institutional demand for bitcoin to speed up, partly because of the work accomplished by NYDIG to create “a trusted custodian for digital belongings.”
“Institutional demand for this rising asset class has hit an inflection level,” in line with Bessemer. “The technical hurdles and regulatory friction have made it tough for establishments to speculate and handle these new shops of worth—till now.”
MORE FROM FORBESFormer Facebook Exec: Bitcoin Is An ‘Insurance Policy’ Against The FedBy Billy Bambrough
Derivatives buying and selling is rapidly rising as one of the vital thrilling alternatives in bitcoin and … [+] crypto, in line with Bessemer, and “has room to run.”
Elsewhere, Bessemer predicts the comparatively small bitcoin choices market, which has solely emerged over the past couple of years, will proceed to develop.
“Choices solely account for ~1% of the common day by day buying and selling quantity for bitcoin immediately, relative to 20%-25% in additional mature markets like equities, oil, and gold,” the Bessemer weblog put up learn. “Whereas nonetheless nascent immediately, derivatives buying and selling is rapidly rising as one of the vital thrilling alternatives in crypto.”
Author: By Billy Bambrough
The State Duma Supported The Initiative To Create A Crypto-Ruble.
Many Russian experts want to participate in the discussion about the feasibility of launching a state cryptocurrency.
As a reminder, the Bank of Russia announced that it was ready to accept proposals and comments related to the development and implementation of a regulated token pegged to the ruble. Their report says that if the so-called crypto-ruble is issued, the Central Bank of the Russian Federation will become its sole issuer.
According to Arseny Poyarkov, representing the State Duma expert council on digital economy, the emergence of the crypto-ruble will be an important step towards the improvement of the financial system of our country. At the same time, he highlighted:
“It is unlikely that ordinary citizens will notice its appearance, since the digital ruble from the consumer point of view is no different from a normal ruble.”
However, from a technological point of view, there will be a great qualitative change. First of all, it is about reducing transaction costs when sending funds.
In fact, transactions will be carried out without going through the traditional banking sector, so it will not be necessary to involve the services of intermediaries, which will make transfers cheaper, Poyarkov said.
Gleb Kostarev, who heads Binance’s office in Russia, doubts that the crypto-ruble will quickly enter the domestic market, even if the authorities approve its launch.
The company will need at least a year to switch to a new instrument, the Prime agency quotes the expert.
Author: Souvik Sarkarhttps://news.triunits.comCrypto Expert And Blogger .
A first look at the projects competing for Cardano’s Fund2
The second-ever Cardano fund is in full effect, with three of the dozens of projects now competing for a part of the 2 million ADA fund presented on the Cardano Effect podcast. We take a look at the proposals, which range from e-commerce payment solutions to educational hubs, and how they plan on using the $250,000 fund to improve and build on Cardano.
The first project highlighted on the Cardano Effect podcast was Free Commerce, an open source, commission-free payment integration for ecommerce stores. The payment integration system will first be implemented to Shopify, as it’s one of the largest and most well-known online platforms of its kind.
Free Commerce’s developer, a Brazilian native named Jeronimo, explained that the system will work as a straight “wallet-to-wallet” payment solution, requiring no intermediaries to process the transactions sent in ADA. Instead, it will function as an open-source server that works as an observer of transactions made from the wallets of Shopify buyers to the wallets of Shopify store owners. Neither the Shopify platform nor the server will hold anyone’s private keys—to enable ADA payments, the shops will have to provide only their root key.
Said root key would then be used to generate a new receiving address every time a customer of the store makes a purchase. Creating a separate address per every order makes it easier to determine that the right amount of money was paid without having to look through mixed funds in the shop’s main wallet. Once the total amount of the order is paid to the receiving address, the owner of the store will receive the funds directly in their own wallets—the server will verify the validity of the transaction.
This approach will maintain the privacy of the online store, as no customer will be able to track the store’s main wallet and see other payments sent to it.
The de-risking and risk assessment processes have already been done, but the developer noted that the bulk of the work still lies ahead. The original proposal highlights some of the challenges found on the way, which include a slew of limitations on existing ADA wallets that will require the creation of an ecommerce-friendly wallet for Cardano.
Free Commerce seeks funding of around 725,000 ADA for the first year, which represents approximately 37 percent of the total amount allocated to the Fund2.
Presented by a veteran YouTube educator, the second project seeking funding was Lovelace Academy, a series of video courses on writing smart contracts on the Cardano blockchain.
The project, which will consist of two separate courses, will be led by a three-strong team with Brazilian and Indian roots and focus on attracting and educating developers to build various dApps on the blockchain.
Lovelace Academy’s main platform will be YouTube, where the team plans on delivering 25 episodes in a period of 6 months, with the estimated cadence being one episode every week. The “Making sense of Cardano” series will consist of around 10 episodes, each one lasting between 10 and 30 minutes, featuring guest interviews, news, and updates focused on exploring real-world uses for Cardano. “Cardano’s Sart Contracts” series, however, will feature slightly longer episodes, lasting for up to 60 minutes, presenting practical and easy to understand tutorials on Marlowe and Plutus programming languages. Each episode will be followed by GitHub tutorials and various other repositories to enable easier access to viewers.
If there’s sufficient interest from the community, all of the episodes could be easily replicated in Portugese or Hindi, the team said in the original proposal.
The Lovelace Academy seeks funding of around 120,000 ADA for the six months, which represents approximately 6 percent of the total amount allocated to the Fund2.
The third project presented on the Cardano Effect podcast represents a foray into brick-and-mortar rarely seen in the crypto industry. Andrii Voloshyn, the name behind the Cardano Hub, believes that creating a physical location where people will be able to access everything Cardano-related will be a huge benefit for the entire community.
With previous experience in running a cryptocurrency hub spot, Voloshyn wants to create a coworking and meetup space that will feature a library, a bookstore, and a cafe, essentially functioning as an all-in-one hub both for those deeply involved with Cardano and those new to the ecosystem.
The hub, however, won’t be passive—the space will have a structured working plan broken down into phases that correspond to the launches of Goguen, Basho, and Voltaire. The hub’s Goguen phase will be spent doing meetups to popularize Plutus and Marlowe scripting languages. Through the meetups, the space should be able to acquire high-quality developers working on Haskell, and provide various courses to companies and individuals looking to use smart contracts on Cardano.
The hub’s Basho phase will follow the CATO (Cardano Adoption Through Outreach) tactics and work on developing interoperability with other blockchains. In practice, this means opening its doors to other projects, either to cooperate or assimilate them into Cardano. Come Voltaire, the hub will focus on promoting the study of philosophy, political sciences, and economics. This, Voloshyn explained, will create a good foundation for ideas that could be used in Cardano’s governance.
While Kiev was proposed as the first location for the hub, the proposal noted that other locations were also in play—the hub could be located in Washington State of Wyoming and functions as Cardano headquarters for the Northwestern part of the U.S. Italy’s Milan was mentioned as a possible location, too.
When it comes to the project’s profitability, the proposal outlines tokenization of the hub as an option—ownership of the entire space could be turned into tokens that would provide profit for all of its users.
The Cardano Hub seeks funding of around 888,000 ADA for the first year, which represents approximately 44 percent of the total amount allocated to the Fund2.
While each of the presented projects was ambitious and unique in its own way, they’re not the only ones competing for a part of the $250,000 fund. With ample time for the community to explore various proposals presented on the IdeaScale platform, we can expect more of them to be presented both on the Cardano Effect podcast and on various other Cardano-related media channels.
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Russian Central Bank Announces Crypto Holdings Limit for Investors
The Russian central bank has been making significant moves to structure the country’s crypto space, with the country gearing up for an adoption push. In its latest policy offering, the banking watchdog is setting a limit on how much Bitcoin should be accessible to “non-qualified investors.”
Earlier this week, the Bank of Russia published a policy note in which it announced that it would restrict non-professional investors to a specific amount of digital assets. The bank explained in the notice that it would restrict these investors to just 600,000 Russian rubles ($7,800) a year, with the limit applying to all “digital rights.”
The policy note saw the Bank of Russia outline its regulatory competences over “On Digital Financial Assets,” a new crypto law that the Russian parliament passed in July. In accordance with the law, the central bank explained that it had the right to determine who qualified as an investor and who doesn’t. The bank also exercised its right to determine the features of digital financial assets that should only be available to such investors.
Most prominently, the crypto law passed in July doesn’t include any information about limits on crypto units available to specific investors. However, it’s also worth noting that the country is in the process of passing a second crypto bill, known as “On Digital Currency.”
It’s unclear whether the next crypto bill will support claims from the central bank or how it expects to move the country forward regarding crypto adoption. However, the State Duma reportedly expects to pass it in its autumn session – which ends in December.
As for “On Digital Financial Assets,” it will be implemented in the country from January 1, 2021. The new limits on investors’ access to digital assets will also go into effect on the same day. Until then, the bank of Russia has asked members of the public to provide their thoughts on the measure.
The limit on investors’ access is just the latest in the Russian government’s attempts to hold tight controls on its crypto space. Since the crypto law got passed into law, several government agencies have propped up controls in their industries to accommodate crypto services. However, some have also taken things a tad too far.
Last month, top crypto exchange Binance announced on its official Telegram page that Roskomnadzor, the Russian telecoms regulator, had blocked citizens’ access to its website.
According to the announcement, the regulator placed Binance on a blacklist due to the exchange’s distribution of data related to digital assets acquisition. Gleb Kostarev, Binance’s head of operations for Russia and the CIS, explained that they immediately announced the development when the regulator got in touch with them.
Binance bemoaned the action, pointing out that Roskomnadzor hadn’t even given it proper warning before proceeding with the blacklist.
“We were not previously notified of any claims by law enforcement agencies, civil government services or courts prior to receiving the above notification. We have now engaged our legal counsels for further advice and would like to assure all of our Russian users that there will be no disruption to their services in the interim and that their funds are safe,” the Telegram announcement read.
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