Gemini Exchange Joins CME Group’s Crypto Benchmarks

Latest reports reveal that Winklevoss twins’ Gemini platform will soon appear as a constituent exchange for the Chicago Mercantile Exchange (CME …

Latest reports reveal that Winklevoss twins’ Gemini platform will soon appear as a constituent exchange for the Chicago Mercantile Exchange (CME Group)’s crypto reference rates. On August 8, CME Group revealed in an official tweet that Gemini will feature in four major crypto pricing indices starting August 30.

Mark your 🗓. @Gemini will be added as a constituent exchange for the CME CF Bitcoin and Ether-Dollar Reference Rate and Real-Time Index, capturing wider market participation and increasing the robustness of the pricing indices. @CFBenchmarkshttps://t.co/c6T1kfOpu9pic.twitter.com/m8mhii3p6H

— CMEGroup (@CMEGroup) August 8, 2019

The CME Group Indices

As earlier reported in November 2016, the Group unveiled its first two virtual currency pricing products. They referred to them as the spot index “CME CF Bitcoin Real-Time Index” and the standardized reference rate “CME CF Bitcoin Reference Rate.”

Both were seen as major stepping stones towards the successful professionalization of Bitcoin trading. They also signified the acceptance of the digital asset by the stalwart traditional trading giants. The CME Group launched two analogous products in March 2018 for Ether (ETH). The products include “CME CF Ether Real Time Index” and “CME CF Ether-Dollar Reference Rate” in conjunction with UK-based crypto futures-focused exchange Crypto Facilities.

These pricing products drew on transactions and order book activity data anticipating the addition of Gemini. Some of the involved trading platforms include Coinbase, Bitstamp, Kraken, and itBit. Nevertheless, Coinbase is not cited in relation to any of the CME Group’s Ether products.

Crypto Index Race

Notably, the CME Group was preceded by the NYSE Bitcoin Index that went live in May 2015. According to the NYSE operator Intercontinental Exchange (ICE), this product was the first-ever exchange-calculated and disseminated Bitcoin index. Since the early years, the crypto pricing products have turned out to be increasingly more widespread and sophisticated. Most of them target institutional investors.

In June 2019, the over 500,000 traditional traders reviewing the Bloomberg and Reuters financial terminals got access to a new AI-powered index. The index featured 100 of the strongest performing tokens and cryptos.

CryptoCompare went ahead to launch an Exchange Benchmark product in 2019 ranking more than 100 global crypto spot exchanges throughout the world. Previously, the data provider had announced a partnership with Nasdaq to unveil a new crypto pricing product. It also announced a joint venture with BitMEX to create a crypto futures dataset.

Nasdaq launched XRP Liquid Index (XRRLX) at the end of April 2019 to its global data service. Previously, Nasdaq had begun listing Ethereum Liquid Index and Brave New Coin’s Bitcoin Liquid Index.

CoinMarketCap announced in March that it was launching two crypto benchmark indices on Bloomberg Terminal, Börse Stuttgart, Nasdaq Global Index Data Service, and Thomson Reuters Eikon.

John WangubaJohn Wanguba

John Wanguba

John is a content crafter and has experience in writing Forex and Crypto news for FXTimes for over a year. He is also an experienced creative and technical writer, and is usually one of the first ones to publish, discover or cover a scoop. e-mail: john@fxtimes.com

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Despite Underperformance, Ethereum Price Looking Bullish: Analyst

As outlined in Ethereum World News’ market report published yesterday, altcoins haven’t been doing too well during Bitcoin’s swing to the upside.

Bitcoin Dominance Wanes

As outlined in Ethereum World News’ market report published yesterday, altcoins haven’t been doing too well during Bitcoin’s swing to the upside. In fact, Bitcoin dominance, a key statistic used to determine how much of the cryptocurrency market’s capitalization consists of BTC, hit the highest it has been in over a year. Dominance has been tearing higher ever since this rally started, as all investors have focused on Bitcoin.

Binance Research suggested in a recent report that this has much to do with a “flight to quality” strategy enlisted by many industry investors and traders.

This trend has continued into Wednesday. According to CoinMarketCap’s data as of Wednesday afternoon (UTC), this key statistic has hit 68.8%, rising by around 0.6% in 24 hours. For a market valued at over $300 billion, a 0.6% move is quite impressive.

Despite Underperformance, Ethereum Price Looking Bullish: Analyst 1Despite Underperformance, Ethereum Price Looking Bullish: Analyst 1
Image Courtesy of Coin360.io

Ethereum Ready to Run

Despite the underperformance of altcoins, a growing number of industry analysts are starting to make the case that Ethereum (ETH) to rally against Bitcoin, and against the U.S. dollar too.

Teddy Cleps’ analysis of the ETH/USD chart was actually somewhat bullish. He pointed out yesterday that Ethereum’s 1-day chart looks “interesting”, making a point of the close above the 21-day and 200-day exponential moving averages (EMA). This implies that bulls are in control.

Also, the Moving Average Convergence/Divergence (MACD), an indicator meant used to track trends, flipped bullish. Barring that this is a fakeout, Ethereum should continue higher in the coming days. Most importantly, however, Teddy notes that there is little resistance until ETH reaches $260, meaning that if there is sufficient buying pressure, the asset shouldn’t have too much of a trouble reaching that level.

#ethereum$ETH

Everyone talking about $BTC but forgetting eferyum 👁️

Daily looks interesting:

– Closed above 21 and 200ema

– MACD crossed bull

– Major gap ahead ( not much resistance till 260s )

A close above 89ema, me and @VitalikButerin will be hosting a party 🧨 pic.twitter.com/cCVFc0PGpH

— TEDDY 🌐 (@teddycleps) August 6, 2019

Ethereum is also purportedly looking bullish against Bitcoin, which is, as aforementioned, surging higher against all other crypto assets. Popular industry analyst Galaxy recently pointed out that the ETH/BTC chart currently looks as it did prior to 2017’s absolute explosion, during which the asset rallied to over 0.1 BTC. Should history continue, ETH/BTC may surge higher in the coming months.

It might be time to consider having some $ETH bags. pic.twitter.com/BHYYH730hl

— Galaxy (@galaxyBTC) August 6, 2019

Booming Fundamentals

The fundamentals may support such a surge. As detailed by this outlet the other day, Ethereum’s stablecoins, which includes Tether, Gemini Dollar, Paxos Dollar, USD Coin, and the decentralized Dai, collectively account for over 50,000 transactions on ETH each day.

What’s most notable is that the USD-denominated value of Ethereum stablecoin transactions is expected to surmount that of Venmo transactions this quarter, which is notable in and of itself. Although this is somewhat of an apples-to-oranges comparison, it goes to show how Ethereum has progressed in terms of being a platform for digital payments.

Also, DeFi and DEXs have seen a large uptick in usage over the past few months.

Title Image Courtesy of Marco Verch Via Flickr

Coinbase Has to Face Negligence Lawsuit Over Launch of BCH

As per the latest reports, Coinbase Inc. will have to face a lawsuit for negligence over the unveiling of Bitcoin Cash (BCH). According to the ruling by …

As per the latest reports, Coinbase Inc. will have to face a lawsuit for negligence over the unveiling of Bitcoin Cash (BCH). According to the ruling by Vince Chhabria, United States District Judge of Northern District of California, the cryptocurrency exchange exhibited ‘incompetence born of haste’ during the said launch back in the year 2017.

The judge further freed the San Francisco-based crypto exchange from the charges of fraud and unjust competition. However, he found the exchange to be guilty of negligence. The judge also rejected the argument to handle the lawsuit in mediation. Apart from that, Chhabria’s ruling has allowed the buyers of BCH, not the sellers, to move ahead with the case.

As per Chhabria, the refiled complaint brought forward a reasonable account that the exchange did infringe its duty of maintaining a functional market. The judge said that the complaint failed to sufficiently clarify how the launch carried out market manipulation for BCH or BTC even if it’s assumed that BCH is a commodity that’s subject to the Commodities Exchange Act. It also doesn’t coherently or plausibly explain the price manipulation motive of Armstrong and Coinbase, he added.

In December month of 2017, Coinbase had introduced BCH trading. Due to suspicious activity as well as high volatility, the exchange had to suspend the trading in merely 2 minutes of the launch. And that’s not all. The prices of Bitcoin Cash had noted a surge several hours before the listing announcement made by Coinbase, earning the exchange another accusation of insider trading.

The judge further highlighted that the exchange’s decision to stop trading indicated dysfunction. BCH buyers have also argued that the exchange could have declared their trading launch beforehand to avoid the price spike. After all, it was the buyers who got primarily affected by the price inflation. Furthermore, the buyers’ alleged a reasonable motive: a rush to the launch. That’s because bitcoin futures trading had already opened on the Chicago Mercantile Exchange a day ago. These circumstances may describe the reason why the buyers’ orders had been packed with high-price, the judge remarked.

For those who are unaware, Bitcoin Cash is a Bitcoin spinoff created in 2017. A trader called Jeffery Berk has filed the lawsuit against Coinbase.

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‘Institutional investors’ are powering Bitcoin’s bull run, says report

Coinshares also weighs in on the two second largest cryptocurrencies, Ethereum and XRP. While the report notes that “internal disagreements” …

A new class of “institutional investors”—spurred by large financial institutions such as Fidelity— is fueling this year’s dramatic bull run, according to the first biannual report from digital asset management firm Coinshares. Though the report cautions that retail-side investment is waning, it proclaimed a new era of Bitcoin dominance.

London-based Coinshares analyzed market trends from January through June 2019, and acknowledged significant differences between the 2017 market rally and the current one. “Four factors that were present during the 2017 bull run have been conspicuously absent during the current rally: widespread media attention; spikes in ‘bitcoin’ searches on Google; spikes in tweets about Bitcoin; and the aforementioned corresponding rally in altcoins.”

Despite this, the report hails the long-awaited influx of “institutional money.” The report cited asset management firm Fidelity, which this year announced its intention to launch institutional grade Bitcoin custodial services. Coinshares also pointed to a spate of other large businesses moving into the space, among them Microsoft, Starbucks, and the Intercontinental Exchange, which are together launching the Bakkt exchange. That business is seeking permission to sell physically settled Bitcoin futures.

And then there’s Facebook, which plans to run a digital currency, “Libra,” from a Swiss bank account governed by a consortium of 27 Silicon Valley grandees. Though the project stoked anger from lawmakers worldwide, Coinshares suggests that the project nevertheless looks promising.

“While Libra is centralised, permissioned, trust-based, not censorship resistant, not scarce, and arguably not even a cryptocurrency at all (though this term is poorly defined…) it does offer potential benefits to the world’s unbanked that currently don’t have access to services we take for granted in the West, such as online shopping,” the report said.

The report’s conclusion that it is “institutional money” fuelling the market may be short-sighted, however. The market dominance of embattled stablecoin tether, a dollar-denominated token used by whales unable to access US capital, has raised uncomfortable questions this year. Last month, Decryptreported that vast sums of tether are bought wholesale in advance of massive trades, by large over-the-counter trading desks. The venerable banks and pension funds who qualify as “institutional investors” would be unlikely to make their entrance via tether rather than, say, a proudly regulated exchange like Gemini.

Coinshares also weighs in on the two second largest cryptocurrencies, Ethereum and XRP. While the report notes that “internal disagreements” continue to roil the Ethereum developer community, it expresses hope for Ethereum’s much-anticipated phase two: the launch of Ethereum 2.0., or Serenity, which will release after Ethereum developers “scrap” the existing protocol.

The report was less positive toward XRP, the “worst performer of H1 2019 by far,” whose six percent price growth this year pales in comparison to Bitcoin’s 188 percent rebound, and Litecoin’s chart-topping 281 percent rebound. Even the favorable view taken of the cryptocurrency by global policy makers—including the IMF’s Christine Lagarde—is taken with a pinch of salt.

“It is not entirely clear if these positive views apply to XRP the digital asset, or if they are simply made in reference to the company Ripple, their RippleNet product suite, or all of the above,” the report said. (XRP the cryptocurrency was supposedly “gifted” to Ripple, which nevertheless holds the largest amount and continues to frequently dump it on the XRP market.)

Even with XRP’s meager gains, it seems number continue to go up across the board.

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Coinbase faces a huge negligence lawsuit over mishandling Bitcoin Cash launch

The US-base unicorn, or better yet, the largest cryptocurrency exchange in the US, Coinbase is reportedly facing a negligence lawsuit for not handling …
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The US-base unicorn, or better yet, the largest cryptocurrency exchange in the US, Coinbase is reportedly facing a negligence lawsuit for not handling the launch of BCH the right way.

According to released court documents, US District Judge Vince Chhabria has formally accused the exchange of unfair competition practices and misrepresentation.

Bitcoin Cash was launched after a Bitcoin fork in 2017. Shortly after that, the altcoin was split to two other cryptocurrencies namely Bitcoin Cash SV and Bitcoin Cash BCH.

The problem stems from the fact that Coinbase allowed trading or US dollar orders, but shortly after that suspended them several minutes after the start of orders. The reason for the haphazard: “significant volatility”. Simultaneously, the prices of the cryptocurrency skyrocketed within a very short amount of time before BCH was actually added on the Coinbase platform. As a result, the general opinion was that there is an insider trading scheme going on.

According to Judge Vince Chhabria:

The fact that Coinbase halted trading within three minutes of the launch is indicative of dysfunction. Most prominently, Coinbase could have announced its launch of trading in Bitcoin Cash more than an hour in advance, which would have permitted more buyers and sellers to place limit orders.

The quote comes from a news post from Hard Fork. According to the online newspaper, there was no response from Coinbase regarding the issue at this point.

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