Bitcoin 7% Increase as Cryptocurrency Market Rebounds From Yesterday’s Losses

After dipping below $6,500, the price of bitcoin has increased 7 percent to $7,100, as the rest of the cryptocurrency market recovered over the past 24 hours.

Since March 30, the valuation of the cryptocurrency market rose from $250 billion to $268 billion, by around 8 percent.

Correlated Movements

On March 29, Cornell professor Emin Gun Sirer stated that a mature market should have assets that are performing independently from each other.

“Indeed, a mature market should be decentralized, with independent coin prices decoupled from each other, each moving in concert with the future prospects of the specific coin,” said Sirer.

For many weeks throughout February and March, the entire cryptocurrency market has demonstrated correlated movements, as the vast majority of both major and minor cryptocurrencies recorded similar gain and loss patterns with extreme volatility.

Today for instance, as the bitcoin price increased by 6 percent, Ethereum, Ripple and Litecoin all increased by the same 6 percent. With the exception of a handful of cryptocurrencies, which have been likely affected by pump and dumps, most of the cryptocurrencies in the global market have all moved in a similar pattern since the major correction occurred in February.

As such, given the extreme volatility in the market and its correlated price movements, it is evident that the market has not stabilized from its recent correction, and thus may need more time to recover from its losses.

The market demonstrated a necessary rebound from the $250 billion mark, and major cryptocurrencies like bitcoin have been able to sustain their resistance levels, even though volumes still remain relatively low across all cryptocurrency exchanges.

History

Bitcoin’s latest correction has been brutal, and it led to millions of dollars in losses for many individuals and institutional investors holding the cryptocurrency on behalf of organizations. But, it is important to acknowledge that identical patterns have occurred in the past, throughout 2013 to 2018.

2018’s bitcoin correction is the third worst correction the cryptocurrency has ever experienced, after two 80 percent corrections it suffered in 2013 and 2014. Both corrections took nearly 12 months for bitcoin to recover from.

The market moves up and down, and volatility is stronger in markets like the cryptocurrency market that have lower liquidity and volume than other regulated markets. The cryptocurrency market was not largely affected by the prohibition of cryptocurrency ads or other news relating to regulation, contrary to the narrative the media has tried to portray. Rather, it was the market simply acknowledging that the price of most cryptocurrencies have increased to a point in which they were difficult to justify based on tangibles and sustainable models.

 

Tron for example, was worth $16 billion, and neared the valuation of SpaceX. While it is entirely possible for Tron to achieve that market cap again in the future, Tron has only released its testnet this week.

 

The valuation of most cryptocurrencies were not proportional to the impact they had on the respective industries they were targeting, and the cryptocurrency market experienced a correction because investors could no longer support the prices of them.

Telegram ICO Hits $1.7 Billion After 2nd Funding Round

The Telegram ICO has now raised a total of at least $1.7 billion, public documents show.

According to offering documents filed with the US Securities and Exchange Commission (SEC) and dated March 29, the second round of Telegram’s much-hyped initial coin offering (ICO) raised $850 million in a sale that began on March 14.

The filing reports that 94 investors contributed to the funding round, placing the average individual investment at approximately $9 million. The previous funding round, which occurred in January and also raised $850 million, attracted 81 investors for an average individual investment of $10.5 million.

Both rounds of the Telegram ICO have been reported to the SEC under Rule 506(c) of Securities Act Regulation D, which allows unregistered securities issuers to raise an unlimited amount of money as long as they restrict contributions to accredited (i.e. wealthy) investors, file a simple report with the SEC, and require investors to submit to a predefined vesting period before selling their stakes.

The $1.7 billion Telegram has currently raised exceeds the $1.6 billion the firm was reportedly targeting in February.

However, Telegram has been notoriously opaque in both the development of its new blockchain protocol and the handling of the ICO, so it is unclear whether this marks the conclusion of the firm’s token sale or founder Pavel Durov will seek to raise more cash for the project in the near future.

This opacity has scared many big-name investors away, including renowned cryptocurrency hedge fund Pantera Capital.

The company claims that the Telegram Open Network (TON) — whose native token is called “Gram” — will be a revolutionary “third-generation blockchain” that has the network capacity to process 1 million transactions per second at virtually no cost. However, many blockchain developers have raised serious questions about the practicality of TON’s proposed system.

As CCN reported, quantitative analyst Aaron Brown estimated that the TON could reach a $200 billion market cap in five years — a best case scenario — but that current investors are likely overpaying for the Gram tokens.

Bitcoin Raise 7% to $8,460 Overnight as Cryptocurrency Market Rebounds

After dipping below $7,300 on most major cryptocurrency exchanges, the price of bitcoin has raised 7 percent overnight, increasing from $7,240 to $8,467, triggered by a variety of factors.

G20

Many analysts have attributed the recent increase in the price of bitcoin to the result of the 2018 G20 Buenos Aires summit, during which the Financial Stability Board (FSB), the global watchdog that oversees banks and financial networks as a representative of 20 major economies, stated that existing regulations on cryptocurrencies like bitcoin will be held and no additional restriction or regulation shall be issued.

FSB’s official report referencing FSB Chair and Governor of the Bank of England Mark Carney’s letter read:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system.”

Previously, up until this week, several analysts noted that the upcoming G20 meetup has contributed to the decline in the value of cryptocurrencies, as investors anticipated the G20 financial watchdog FSB to crackdown on cryptocurrencies and issue stricter regulations. Investors expected major economies to come together to regulate the global cryptocurrency market with harsher policies.

However, governments have decided to accommodate existing regulations on the global cryptocurrency market, which are already strict in regions like the US and Japan, and follow the regulatory roadmap of leading cryptocurrency markets to facilitate the rapidly growing demand for the emerging asset class.

It is highly unlikely that the G20 meetup was the sole factor behind the recent price surge of bitcoin and the entire cryptocurrency market. But, the cryptocurrency market was in need of an optimistic and positive development to secure an upward trend again, after being in a slump for over a week.

Consequently, the valuation of the cryptocurrency market recovered beyond $310 billion, subsequent to falling below $280 billion, and is eyeing to initiate a short-term rally.

In previous reports, CCN emphasized that the January correction would require several months to recover because many investors were hurt by the decline in the price of cryptocurrencies. In 2017, the cryptocurrency market was considered the path for short-term profits. In early 2018, investors have stated to view the market differently, and speculators or weak hands have left the market.

2018 saw significantly developments in bitcoin, Ethereum, and other major cryptocurrencies along with emerging blockchain technologies. Yet, the price has not represented the magnitude of developments that have happened in the space, most likely because speculators and weak hands were not interested in the technology, but rather in short-term profits.

Short-Term

In the short-term, given the continuous increase in the dominance index of bitcoin, it is highly likely that bitcoin will maintain its dominance over the market in a volatile period like this. Bitcoin’s dominance index is already at 44 percent, and has been increasing since February, as more investors have started to eye bitcoin as a safe investment over other cryptocurrencies.

Cryptocurrency news: Will Litecoin ever overtake Bitcoin?

LITECOIN is currently ranked as the fifth cryptocurrency on the market, it has grown more than 3855.16 percent over the past year and has shot from $4.26 this time last year to a price of $168.49. So why has it experienced this remarkable growth and could it overtake the number one cryptocurrency bitcoin?

Litecoin was founded in 2011, two years after bitcoin was born.

The token is often referred to as the ‘silver to bitcoin’s gold’, as it was launched using the same code as bitcoin and its aim was to improve on the transaction speed of bitcoin.

Instead of using bitcoin’s SHA256 network, Litecoin used scrypt functions which helped to improve transaction speeds.

Bitcoin creates a block of information with data encrypted in 10 minutes, whereas Litecoin does it in two and half minutes per block.

As a cryptocurrency, it is favoured by traders as it is considered to be not as congested as bitcoin and is a lot cheaper as a result.

And experts claim Litecoin has asserted itself as a cryptocurrency which deserves to be in the top five, but does it have the potential to ever overtake bitcoin?

Will Litecoin ever overtake Bitcoin?

Litecoin has experienced remarkable growth this year, increasing in price by 3855.16 percent, compared to bitcoin’s 593.39 percent.

Bitcoin has been plagued by extended transaction speeds as users flood the network – many have said it has become a victim of its own success and has become too congested.

Despite this, experts do not predict Litecoin overtaking bitcoin any time soon.

Bitcoin was the first cryptocurrency on the market so has first advantage and is recognised as a well-know cryptocurrency name, Nicholas Cawley, analyst at Daily FX explained to Express.co.uk.

The number one cryptocurrency managed to garner a critical mass and drew in investors and traders, and Mr Crawley said he does not envisage Litecoin ever outshining bitcoin.

However the analyst also predicts Litecoin will overtake another cryptocurrency this year, which is currently fourth on CoinMarketCap.com.

“I think Litecoin will overtake Bitcoin cash but in market capitalisation terms will struggle to overtake Bitcoin,” Mr Cawley said.

Bitcoin Cash has just under 17 million tokens in circulation against a maximum of 21 million, while Litecoin has 55.5 million of a maximum 84 million in supply, so if prices remain the same litecoin’s market cap will grow faster than Bitcoin Cash.

“I also like the Litepal payment system and when we eventually see the launch of the Litepay debit card, then I can see Litecoin overtaking Bitcoin Cash.”

Kristjan Dekleva, head of product development at Blocktrade was in agreement and did not forsee Litecoin taking the number one spot on the cryptocurrency market.

Mr Tekleva said: “I don’t believe that Litecoin will overtake bitcoin. Litecoin does its intended job well for certain intents and purposes and has somewhat wide market penetration.

“But one it lacks the name recognition that Bitcoin has, which helps it stay where it is despite its flaws, and two there are numerous other altcoins that do Litecoin’s intended job, quick and cheap transactions, much better.

“Ultimately, it functions ok, but not well enough to break out of mid-market in the long run.”

While Andrei Barysevich, Director of Advanced Collection at Record Future, believes Litecoin has the capability to overtake bitcoin at some point, but not in the current climate.

“Bitcoin is not going anyway, everybody knows about bitcoin, in my view, it is going to remain as a gold standard. People will continue to use and continue to store money in bitcoin,” he said.

“However in day to day operations, I think Litecoin is to become more dominant currency, as soon as we start to see established e-commerce websites accepting Litecoin, that’s the time when i think Litecoin is going to dominate bitcoin cash.”

Mr Barysevich added to say he believes Litecoin will continue to experience growth in 2018 and will add on the success it is already experienced.

 

Israel: Steps Toward Cryptocurrency Support

In terms of technological innovation, Israel has been labeled by some as “The Startup Nation”with Israeli ventures raising over $5 billion in capital in 2017. This is almost 10% of China’s yearly fundraising total. While there’s a number of popular applications, platforms, and products including USB flash drives, the Waze navigation app, SodaStream carbonation machines, the country has set its foot in the crypto industry as well.

Back in 2017, Hapoalim, Israel’s largest bank, partnered with Microsoft to create a Blockchain-powered platform to “make the process of signing up guarantors simple and quicker.” And in February 2018, the Israeli Tax Authority (ITA) stated that cryptocurrencies will be taxed by the capital gains as properties.

On February 26, 2018, the country took it even further, when the Israeli Supreme Court handed down a decision that would temporarily block Leumi Bank, limiting a local broker, Bits of Gold, from facilitating the sale of cryptocurrency.

Though many were quick to laud the temporary ruling as ‘precedent-setting,’ it still leaves ample room for further developments. The judge ruling the case, Anat Baron, said that her decision was “not intended to harm the bank’s rights to analyze with specificity every transaction that takes place with the bank account or to take any actions that are related to minimizing risks.” This likely means cryptocurrency brokers and exchanges putting transparency first will be regarded as lawful—for now

Founder and CEO of Bits of Gold Yuval Roash sees this decision as justified, saying,

“Regulation is one of the things that has been important to us since the beginning. From the very beginning, we saw the problem with Bitcoin in terms of its anonymous characteristics, and we wanted to receive a currency service certificate—and we received it in August 2013.”

This is significant progress from December of last year, when a Tel Aviv district court ruled in favor of Leumi Bank, who had refused service to Bits of Gold because of Bitcoin’s inability to meet anti-money laundering standards. Bank Leumi had also been piggybacking on the Bank of Israel’s June labeling of exchanges as “websites that facilitate gambling transactions”, which is a sore spot for Israel especially. The country proved to be careful about upsetting the balance within its borders, and even blocked popular ride-sharing application Uber from an Israeli debut.

After examining the last five years of Bits of Golds’ operations, Judge Baron determined Leumi’s previous assumption that violations of the law would occur if Bitcoin were left unchecked were false.

In relation to the ruling, Yair Geva, head of the Hi-Tech Department of Israeli law firm Herzog, Fox & Ne’eman, remarked:

“It should be emphasized that the Court did not rule on the fundamental question—which has not yet been decided—whether Bank Leumi is entitled to refuse banking services for cryptocurrency trading. Although the final decision is still pending, it seems that this recent verdict of the Supreme Court will continue to give tailwinds to the tremendous growth of the crypto industry in Israel particularly, and to hi-tech as well as the financial industry in general. One of the reasons for this is that the Supreme Court clarified that Bits of Gold operated transparently and did not violate any statutory provision. In other words, the Supreme Court determined that currently there is no direct legal prohibition on cryptocurrency trading in Israel. It remains to be seen how regulators in Israel will respond to this landmark decision.”

Regardless of how regulators will respond, it’s already clear that progress on Israeli blockchain innovations hasn’t slowed.

“As with any new and promising technology, jurisdictions that instate well-balanced policies to promote innovation and adoption, will find themselves attracting talent and business to their ecosystems on grand scales. The best frameworks will be the ones that take a learning approach, allowing entrepreneurs and institutions to deeply understand how these technologies affect all stakeholders and develop the policies which are beneficial to most while educating the public on tradeoffs and accountability. Israel has always seen the advancement of technology as a strength and opportunity, and is well positioned to lead in Blockchain development and applications,” said Galia Benartzi, Co-founder of Bancor.

Itay Nagler, Israeli citizen and CEO of blockchain-driven travel startup Cool Cousin, says that Israelis, as a default, undercut the perception that things can’t or shouldn’t change.

“We are almost raised to believe that there is always a better, more efficient way to do things. That is one of the main reasons such a small country is home to many great innovative companies and individuals. This is also an explanation to why Israelis were among the firsts to adopt blockchain technology and crypto. A lot of us see it as a wonderful solution to many problems and our mentality of “no fear” to change, and relatively easy access to quality human resources and funding allows us to act on it. This, I believe, helped us during the past decades to position ourselves as pioneers and experts in many industries.”

Even though there were no concrete regulations of the industry before, it didn’t stop entrepreneurs from launching blockchain projects of their own. Bancor was one of the first major ICOs, raising over $150 million in mere minutes, and has its origins in Israel. IOTA , an IoT-focused Blockchain solution, recently opened an office in Tel Aviv, noting that the city is “a well-established tech hub, always ranking in the top 10 of start-up reports.”

These positive changes, however, go contrary to the recent decision by the Israeli regulators of not including companies involved in the crypto industry in the TASE, Tel Aviv Stock Exchange indices, due to its ‘trading volatility.’

Israel appears to be setting itself in the Blockchain ecosystem, along with the rest of the world, but tries first guarantee that the market’s grey areas be limited while its most useful attributes allowed to flourish

Traditional Liechtenstein Bank Launches Cryptocurrency Investment Platform

Citizens of Liechtenstein, a country that has become rather famous for its cryptocurrency acceptance, will soon be able to purchase digital currencies directly from a bank. Given the royal family’s demonstrated interest in the asset class and the general willingness to embrace cryptocurrency development, the move is perhaps not too surprising.

According to a press release issued by Bank Frick on February 28, 2018, it will be offering a wide variety of cryptocurrencies on its trading platform effective immediately. The initial set of digital currencies available for purchase will include BitcoinEthereumLitecoin, Ripple and Bitcoin Cash.

The target audience of the bank likely comprises of high net worth individuals and institutional investors, or rather, the type of individuals that already have a sizeable amount of funds in various banking instruments.

For any cryptocurrency exchange or broker, especially those, security is an important consideration. As is traditional for any cryptocurrency exchange, Bank Frick has stated that it will store all of its customers’ cryptocurrency assets in cold wallets, or rather, on computers air-gapped from the internet for the most part. Other security features, however, were not detailed in the press release.

The financial institution in question is already a fully-regulated bank that complies with all know-your-customer related laws at the country and EU level. Thus, it is safe to conclude that the same identification requirements will be carried over for any investor looking to purchase any amount of cryptocurrency from Bank Frick.

The bank also confirms regulatory compliance in its statement,

“At Bank Frick, cryptocurrency investments are subject to the same strict statutory measures as traditional financial transactions,” and “Clients can only invest in cryptocurrencies once they have been fully identified and verified. The verification and identification process also involves checking the origin of the money used to invest in them.”

Even though Bank Frick is a financial institution that primarily caters to Liechtenstein citizens, it has announced that the platform will be available to any European entity interested in it. The Chief Client Officer, Huber Büchel, said,

“Our services are in demand from companies across the whole of Europe. This is because they know that we can offer them reliable support in implementing their business models with cryptocurrencies and blockchains in line with the existing regulatory framework.”

Furthermore, the bank has announced that it will be accepting foreign currencies in exchange for cryptocurrency assets. At this time, investors can transact in US Dollars, Euros or Swiss Francs.

Bank Frick joins a rather exclusive list of banks willing to not only adopt, but also facilitate the buying and selling of cryptocurrencies. With most financial institutions around the world heading in the exact opposite direction, it is clear that Liechtenstein’s banks have other intentions.

Bittrex Will Remove 82 Tokens Due to Lack of Liquidity in Small Cryptocurrencies

Bittrex, one of the largest cryptocurrency exchanges which also powers UpBit, South Korea’s second biggest exchange operated by Kakao subsidiary Dunamoo, has stated that it will remove 82 tokens from its trading platform.

Token Removal

“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange,” said the Bittrex team. “We will be removing the wallets included in the list below on March 30, 2018. Once these wallets are removed, we will no longer be able to recover these coins. Users must withdrawal their coins before March 30, 2018, in order to keep them.”

The Bittrex team also stated that several cryptocurrencies have broken blockchains that have disabled users from withdrawing their balances.

“The coins marked with an asterisk (*) have broken blockchains or wallets that will not allow withdrawals,” said Bittrex, referring to cryptocurrencies like CRYPT.

On leading trading platforms, it is difficult for exchanges to sustain a stable order book if a cryptocurrencies does not have enough liquidity and demand from users of the platform. Lack of liquidity leads to price manipulation, which can be initiated with funds as little as $50,000, as shown in the recent study done by cryptocurrency trader Sylvain Ribes.

By using a method called slippage–a process of selling $50,000 worth of a particular cryptocurrency on a trading platform to measure its impact on the price–, Ribes evaluated the liquidity of digital assets on major exchanges like OKEx and GDAX. While GDAX had a slippage of less than 1 percent, on OKEx and other cryptocurrency-only exchanges with low market cap or volume cryptocurrencies, each sale of $50,000 led to a 2 to 10 percent drop in the market value of cryptocurrencies.

“A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market. What I did not expect was the magnitude of the fraud,” said Ribes. “Many pairs, albeit boasting up to $5 million volumes, would cost you more than 10% in slippage, should you want to liquidate a mere $50k in assets,” he added.

Wash trading and price manipulation is common on major trading platforms with small cryptocurrencies or low-volume cryptocurrency pairs. The US Securities and Exchange Commission (SEC) recently warned investors against pump and dump schemes that are often seen in the cryptocurrency market.

“Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. These frauds include ‘pump-and-dump’ and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies,” SEC’s statement read.

SEC’s Involvement

Earlier this month, the SEC requested cryptocurrency exchanges to either de-list ICO tokens or register with the agency in order to continue providing support for tokens. For US-based cryptocurrency exchanges like Bittrex, it is mandatory to register with the SEC before processing trades involving tokens.

Throughout next few months, many major exchanges will likely de-list or remove small cryptocurrencies that are prone to pump and dump schemes, and market manipulation.

Could Ripple, Bitcoin and Ethereum return to previous high?

CRYPTOCURRENCIES such as Bitcoin, Ripple and Ethereum are all in the green today after a turbulent start to the year. But could all three top tokens return to their previous record highs? Here are the latest price predictions.

Bitcoin had a good weekend after a poor start to 2018, dropping to under $6,000 at the start of February.

As of Marsh 17, CryptoCoinHubs  highlights a peak up to $8,150  at the time of writing.

Ethereum is up at $600  with Ripple  at $0,66. While LiteCoin , a Litecoin is currently worth $160

The rises come after a damaging month for cryptocurrencies as a whole. After peaking at about $834billion on January 7, the market plunged an eye-watering 66 percent, wiping out some $553billion, according to CoinMarketCap.

But with Bitcoin, Ripple and Ethereum all back in the green today, many crypto experts are confident that the market can reach new heights this year.

Could Ripple, Bitcoin and Ethereum return to previous high?

Thomas Glucksmann of GateCoin told CNBC: “Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year.”

He added bitcoin, the biggest and best-known cryptocurrency, could be “pushing $50,000 by December”.

Jamie Burke, CEO at Outlier Ventures, is bullish about the cryptocurrency market, insisting it has the potential to reach $1trillion.

He told CNBC: “We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”

And Panos Mourdoukoutas, writing for Forbes, suggested that after “ being in a deep correction for a few weeks, Bitcoin, Ethereum, Ripple, and Litecoin have been coming back nicely over the last week, gaining 19.87%, 10.48%, 30.57%, and 53.90% respectively”.

He added the crypto turnaround after the recent crash comes as equity markets rebounded from the sell-off early in the month.

And he also wrote the cryptocurrency “technicals” remain strong, saying “83 cryptocurrencies [are] advancing and only 17 declining among the top 100 listed currencies.”

Dennis de Jong, managing director of UFX, says he believes cryptocurrencies remain strong and will not plummet for good in 2018.

He told Express.co.uk: “It may not capture the headlines like the volatility of bitcoin has in recent months, but there have been considerable advances in the underlying technology of the blockchain.

“Many industries are already live with, or in the process of testing, blockchain use cases that have potentially huge knock-ons for data management and security advancements.

“The relationship between crypto usage and investment in the space underpins bitcoin’s value to an extent, and for this reason I can’t see it going anywhere soon.”

But as central banks attempt to kickstart regulation – Citibank India being the latest financial authority this week to ban cryptocurrency payments on debit or credit card – some investors believe the market slump could be an indicator of an overall crash in all financial markets.

Bleakley Financial Group CIO Peter Boockvar said: “If bitcoin resumes its decline here, I think that equity investors should pay attention.”

Ripple Could Be The Next Bitcoin

Bitcoin has made some investors very rich. Those who purchased the digital currency back in the old days when it was trading for a few dollars. And it could make more investors rich provided that it continues to rise to new highs.

But that’s unlikely, as large percentage gains are hard to come by at these price levels—north of $10,000.

Coin Price* Market Cap
Bitcoin (BTC) $10,751.90 $181,767,449,663
Ethereum (ETH) $788.19 77,266,069,902
Ripple (XRP) $0.91 35,513,987,185
*As of Wednesday, 11 a.m.

Still, there’s Ripple, trading below a $1. And there are experts who believe that it could be the next Bitcoin, one day.

Craig Cole of CryptoMaps is one of those experts.”Ripple just might be the catalyst in making cryptocurrency more mainstream,” says Cole.

Its faster transaction speeds and lower fees make it easier for financial systems to embrace the virtual currency, which is partly why Ripple’s value has increased dramatically just this year. Ripple is helping financial institutions save money and it is only expected to become even more prevalent in payment flows. The virtual currency is certainly on the rise and has the potential to be the first token to truly disrupt an industry, and if it does, expect XRP to reach Bitcoin-like levels of ubiquity in the near future.

John-Paul McCaffrey, Associate Director ITRC, Long Island University, agrees. “Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think,” says McCaffrey. “There is speculation that Coinbase will be adding this to their list of cryptocurrencies they have available for fiat exchange. Providing easy liquidity through Coinbase alone will attract new interest in XRP.”

That will take some time says Roman Guelfi-GibbsCEO, Lead Systems Designer for Pinnacle Brilliance Systems Inc.

Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place. Of course, with crypto, anything can happen, so watch closely.

Not everyone is that enthusiastic about the prospects of Ripple catching up with Bitcoin. Like Shidan Gouran, president of Global Block Chain Technologies.

Ripple is unlikely to go up by one or two notches in the cryptocurrency world in 2018, and this is the case for three reasons. The first reason is the sheer dollar volume that separates each of the three currencies in the top positions, in terms of their market cap. Bitcoin is at over $191 billion, Ethereum is at over $84 billion, and Ripple is at over $35 billion. To displace Ethereum would require a deficit of about $49 billion to be closed (which is more than double Iceland’s entire national GDP). The second reason is that the use cases for Ripple are mostly for the trade of assets, not for day-to-day spending. As consumer awareness of cryptocurrencies will rise significantly in 2018 and beyond, the interest of the masses will be on cryptocurrencies that can be used as currencies, not just for investment transactions. Finally, the third reason is that because Ripple cannot be bought with fiat currencies, one must purchase existing cryptocurrencies such as Bitcoin and Ethereum to purchase XRP. This goes on to feed demand for Bitcoin and Ethereum, and will only solidify their positions as the top two cryptocurrencies on the market.

Actually, the last point is no longer true. Recently, the French exchange bitit.io added Ripple and Litecoin to its coin offerings. This means that Ripple can now be purchased directly. At least that’s what the site claims, though I couldn’t verify how easy the process is and what are the relevant fees.

Still, Ripple investors have to wait for quite some time before they replicate the success of early Bitcoin investors, provided that it gains traction by users—and that big governments, big banks or hackers do not crush cryptocurrencies across the board.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]

Vladivostok as Russia’s New ”Crypto Hub”

Bankers and government officials have discussed the possible creation of a crypto valley on Russia’s Pacific coast. Representatives of the Central Bank and the executive power in Moscow have taken part in the consultations initiated by the Fund for Development of the Far East. The city of Vladivostok, where local authorities want to allow cryptocurrency trade, may become a crypto hub.  

Test Site for Crypto Regulations

The Fund for Development of the Far East has proposed the creation of a crypto valley, centered on the Russian city of Vladivostok, its general director Alexei Chekunov told RNS. The FDFE, along with the digital platform “Voshod” [sunrise], are currently discussing the idea with representatives of the Central Bank of Russia and government officials. The necessary regulatory framework and the risks associated with the project are under examination, as well.

“From around $2 billion dollars raised though crypto assets offerings, Russian projects account for about 5%, or approximately $100 million. It is obvious that the potential of our country in this new and perspective field has not been fully realized”, Chekunov said. He noted that the FDFE had been tasked by President Putin to explore the possibility of setting up a financial center in Vladivostok. “We have proposed to combine these two initiatives”, he added.

Chekunov called the experiment a “Russian Crypto Valley” and described it as a “test site for technical and regulatory approaches”. This week a local representative of the Russian Association of Cryptocurrencies and Blockchain told lawmakers in the Duma that Crimea’s jurisdiction can also be used to test the crypto “phenomenon”. A couple of days ago the head of the Russian republic of Udmurtia urged deputies to quickly adopt regulations and offered its territory for pilot projects. Other regions want to set up large mining facilities.

FDFE has also announced intentions to turn Vladivostok into Russia’s first crypto hub, taking advantage of the special economic ecosphere in its Free Port. The Deputy Finance Minister of Russia recently said that authorities in the administrative center of Primorsky Krai were interested in hosting cryptocurrency trade. The nearby Russky Island has been mentioned as a zone of free crypto interactions.

“At the moment we are focused on finalizing the regulatory rules and analyzing the possible risks. The Voshod platform is ready to start operations with crypto assets. We are working with all interested parties to begin trading after the adoption of the legal framework in mid-2018”, FDFE director Alexei Chekunov said. The Fund for Development of the Far East was created by Vnesheconombank, the government owned Russian development bank.

Do you think Moscow authorities will create a crypto valley in the Far East to experiment with crypto technologies and regulations? Tell us in the comments section below.