Global fintech investment falls sharply

… a halt, partially offsetting strong gains in the US, UK and several other European countries, according to Accenture analysis of data from CB Insights.
The total value of fintech deals globally in the six months ended June 30 was $22 billion, compared with $31.2 billion in the same period of 2018, a decline of 29%.

The drop was due mostly to the lack of a giant deal like Ant Financial’s record $14 billion fundraising in May 2018, says Accenture. Discounting that transaction, global fintech investments would have climbed 28% in the first half of 2019 over the same period last year.

Investments into payments startups and those in lending took the bulk of global fintech fundraising, accounting for 28% and 25% of the total, respectively, while insurtechs raked in 14%.

The value of deals in the US in the first half of 2019 jumped 60%, to $12.7 billion, even though the number of transactions was virtually unchanged from the first half of 2018 (564 vs. 563), signaling a trend of larger deals in the world’s biggest and most active fintech market.

Fintech investment in the UK nearly doubled, to approximately $2.6 billion, and the number of deals jumped 25%, to 263, as challenger banks and payments companies continued to draw investors’ interest. For example, Monzo raised $144 million in June; Starling Bank raised $211 million from two separate transactions in February; money-transfer startup TransferWise closed a $292 million deal in May; and WorldRemit raised $175 million in June.

Other European markets also made big strides, with investments in German fintechs more than doubling in the first half of 2019, to $829 million from $406 million in the same period last year, led by the $300 million that challenger bank N26 raised in January and the $125 million investment in insurtech Wefox Group in March. Fundraising in Sweden more than quadrupled, to$573 million, while fintechs in France raised$423 million in the first half of 2019, 48% more than a year earlier.

There were also large fundraising gains in Asia Pacific, with the value of deals in Singapore nearly quadrupling, to $453 million, and the value of deals in Australia more than tripling, to $401 million.

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Litecoin technical analysis: LTC/USD breaks below SMA 200, following heavily bearish Wednesday

Like the rest of the market, LTC/USD had a heavily bearish Wednesday. Litecoin went down from $84.65 to $75.85, breaking below the 200-day …

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Beaxy’s encounter with Partial Payments via XRP echoes JustCoin’s experience

Beaxy, a cryptocurrency exchange entered the competitive crypto market only in May 2019 and has been introduced to Partial Payment option on …

Beaxy, a cryptocurrency exchange entered the competitive crypto market only in May 2019 and has been introduced to Partial Payment option on August 13, however through an XRP exploit. The Partial Payment being exploited has been recognized by the XRP ecosystem since 2014 when it claimed its first victim JustCoin.

The JustCoin saga:

JustCoin, a digital currency exchange on October 2014 reported a massive move of crypto to and from the exchange. The website in a state of panic was immediately shut down and reached out to Stellar Foundation and Ripple labs, to report this and to find out whether or not other exchanges had faced the same. Stellar was quick to remove the “partial payments” from their system, whereas Ripple’s RippleTrade, that was impacted by the exploit, along with several other exchanges at the time, reportedly “patched” the issue. The foundation at the time explained “partial payments” as:

“As it exists in the Ripple code base, partial payments allow a user to send a small part of a payment rather than the entire payment. For example, the sender could tell the anchor that s/he was sending 10 BTC while actually only sending .0001 BTC. This feature is rarely, if ever, used in practice. “

Generally, in such cases, the anchor must check the “amount” option in order to understand how much crypto they received, however, in case of partial payment transactions, the “delivered amount” must be checked. Thus, a lack of knowledge of this setting can cause a loss of funds. Due to the lack of transaction flag for such payments, the exchanges did not realize the discrepancy at first.

Beaxy’s introduction to Partial Payments

After JustCoin and other exchanges, Beaxy suffered the same incident five years later. Being new in the business, the exchange may not have been aware of this feature, but this ignorance costed them to trade at a 62% discount on its exchange and was first identified as an unusually “high volume activity on XRP-BTC”, due to which it halted transactions on all trading activity and withdrawals.

Soon Beaxy informed of being targeted with an XRP partial payment exploit along with few other exchanges, which have not been identified. The exchange quickly fixed this problem and rolled back relevant trades to the moment the problem was identified and said:

“Additionally, we will credit any funds misappropriated during this time. This process will take some time to complete, bear with us. During this time the exchange will be open, but activities will be frozen as we work on reverting to the previous state.”

The exchange also identified the participants in this exploit due to KYC and was pursuing actions against them.

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Ripple will face “Thor’s Hammer” from the SEC

Ripple will face “Thor’s Hammer” from the SEC … The company behind the cryptocurrency XRP is currently facing legal action by Bradley Sostack, …

Ripple, the company behind XRP has recently come under fire from a serial Bitcoin (BTC) proponent earlier week, following the news that the company is facing a class-action lawsuit.

Ripple will answer to U.S regulators

The company behind the cryptocurrency XRP is currently facing legal action by Bradley Sostack, an investor who alleges that the company is selling crypto as unregistered securities. Sostack upped his game earlier this week when he had his original claim amended to include new guidance from the SEC AKA the United States Securities and Exchange Commission.

As per reports, the SEC’s newest pronouncements lend weight to Sostacks accusations with a new filing staring that Ripple has to respond to allegations by next month.

The SEC to bring down “Thor’s Hammer”

Tone Vays, the host of the Bitcoin Law Review podcast, commented on the events, flinging harsh sentiment at Ripple:

“The SEC is bringing Thor’s Hammer.”

He tweeted the above statement on August 14 and publicly called XRP a scam cryptocurrency. Furthermore, Vays promised he would hold a debate pertaining to the lawsuit in his next podcast. Moreover, Ripple and XRP have both been at the behest of rampant controversy during recent years. Mixed sentiments surrounding the relationship between Ripple and XRP coupled with the questionable behaviour of social media supporters of the company has garnered Ripple a nasty reputation.

To add fuel to the fire Ripple is currently being roasted upon, as reported earlier today by TSA, crypto exchange, Beaxy announced that it has delisted XRP after a malicious attack on Ripple resulted in a massive sell-off on its order book. The attack resulted in XRP prices dropping by 40% on the exchange.

Notably, XRP/BTC is currently trading at its lowest level since November 2017. At the time of writing, XRP is down by 1.93% and trading at $0.292065 per token as per data from CoinMarketCap.

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Ripple CEO: Firm in good position, looking for more high-profile acquisitions

Ripple’s $30 million investment in money transfer business MoneyGram … markets than the Libra white paper [Facebook’s cryptocurrency project].” …
  • Gralinghouse feels that the merging of money transfer services and crypto will have a larger impact than Libra.
  • XRP/USD is currently trading for $0.2966 and has charted the death cross pattern.

According to the statement made by Brad Garlinhhouse, the CEO of Ripple, in addition to the firm being in a strong position, it is also looking at multiple deals with high profile companies. Ripple’s $30 million investment in money transfer business MoneyGram gave birth to a lot of speculation about what comes next.

Garlinghouse told Yahoo Finance UK that Ripple’s momentum will keep moving. He said, “We’re in a very strong position, our business is growing strongly, we have a strong balance sheet, and I intend to press our advantage.” Additionally, he stated that discussions regarding “multiple” acquisitions and investments are taking place. No further details were disclosed.

He added,” Anything we can do to accelerate our growth and give us more capabilities that serve customer needs is a good place to be.” When asked about the areas these investments would focus on, he stated, “Deals are always very, very hard to predict.”

Predictably, Ripple has some major deals in the pipeline. Earlier, it was mentioned as a settlement layer in Bank of America’s latest patent. Moreover, the potential of MoneyGram investment is noteworthy in itself. Garlinghouse revealed that MoneyGram will start off by testing xRapid with the US dollar to Mexican pesos. He said, “It’ll start to ramp in Q4 but really we’ll start to see more consequential volumes in Q1.” He believes that the merger of money transfer services and crypto will have a more prominent impact than Facebook’s Libra:

“If I were betting now, a year from now the Moneygram deal will have a more consequential impact on the crypto markets than the Libra white paper [Facebook’s cryptocurrency project].”

XRP/USD daily chart

fxsoriginal

This Tuesday, the price of XRP/USD has gone down from $0.300 to $0.297. The price has gone down further to $0.2966 in the early hours of Wednesday. The price is trending below the 20-day simple moving average (SMA 20), SMA 50 and SMA 200 curves. The SMA 200 has crossed over the SMA 50, charting the death cross. The 20-day Bollinger jaw is widening, indicating increasing market volatility.

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