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Cryptocurrency

Safest, regulated Cryptocurrency, Arcoin backed by U.S. Treasury securities

The Fund’s shares, Arcoin can be transferred in peer-to-peer transactions. 

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IMF calls crypto "special currency" and educates the public, Crypto: Why investors are rushing to DeFi assets, total market capitalization of cryptocurrencies, Crypto, Whales move 100,000,000 Tether, USDT in less than 24 hours

As many institutional investors and global banks search for regulated crypto assets to invest in, Arcoin created by Arca Labs seems to solve such needs. 

The ArCoin is built on the Ethereum blockchain and represents stakes in Arca’s U.S. Treasury Fund, which is regulated by the American Securities and Exchange Commission. Also, it is made up of 80% U.S. Treasury securities. 

The Arca’s U.S. Treasury Fund can be traced through a customized platform, which enables peer-to-peer transactions. However, for the time being, ArCoin is unavailable on any major securities exchanges. 

READ MORE: Tether market capitalization surges close to $10 Billion

In a prospectus filed with the SEC in April 2019 for the then-developing ArCoinArca explained that: 

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“In the future, Arca UST Coins may be tradeable on a public decentralized or centralized electronic exchange platform that is registered with the SEC as an alternative trading system (“ATS”), although there is no guarantee any such systems or platforms will be available.” 

Quick fact; The Fund’s shares (“ArCoins” or “shares”) can be transferred in peer-to-peer transactions on Ethereum, an open, public, distributed ledger that is secured using cryptography (referred to as a “blockchain”).

READ ALSO: Zilliqa, the fast-rising cryptocurrency that has gained more than 845% since March

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Ethereum records transactions between two parties in a verifiable and permanent way referred to as “immutability.” 

There are no share certificates, and because the shares can be transferred in peer-to-peer transactions using Ethereum’s technology, the shares are characterized herein as “digital securities.” For more information, including the costs and risks of effecting transactions on Ethereum, see “Peer-to-Peer Transactions,” “About the Digital Securities” and “Risks of Digital Securities. 

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In addition, Jerald David, president of Arca Capital Management, which oversees Arca Labs, explained to Cointelegraph of their intentions in using Treasury-based assets:  

“We wanted to create an instrument that invests in traditionally lower-volatility assets and the U.S. Treasury’s were an ideal choice from that perspective.” 

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

1 Comment

1 Comment

  1. Olumayowa Akinwunmi

    July 8, 2020 at 3:31 pm

    It was quite informative. Thank you Sir.

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Cryptocurrency

Nobody is going to ban Bitcoin – US Bank regulator

Following fears of potential regulation on cryptos, it has been revealed that a ban on Bitcoin and other cryptos is far from the truth.

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One of the leading financial regulators in the world’s largest economy, the United States, recently disclosed that the world’s flagship crypto is here to stay, amid rumours coming from different quarters on the likely ban on Bitcoin.

In a report credited to CNBC, Brian Brooks, the Acting Comptroller of the currency, hinted that more regulations on bitcoin and other cryptos are already in the works but downplayed fears that such regulation was going to change the core fundamentals of the crypto market

In a recent interview with Melissa Lee on “Squawk Box,” he disclosed further on “clarity” measure being put in place for cryptocurrency in the next six-to-eight weeks, but said, “nobody’s going to ban bitcoin.”

“We’re very focused on getting this right, on not killing this. And it’s equally important that we develop the networks behind bitcoin and other cryptos, as it is what will prevent money laundering and financing terrorism,” he added.

Fears about potential regulation got strengthened last month when Coinbase CEO, Brian Armstrong, disclosed via his Twitter handle on hearing rumours that the U.S Treasury Department was working to rush out new crypto regulations before President Donald Trump’s tenor ends.

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“We heard rumours that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects and wanted to share those concerns,” Armstrong said.

However, the top U.S regulator dismissed such fears by saying, “I think you’re going to see a lot of good news for crypto before the end of the term,”

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What you should know

  • At the time of writing this report Bitcoin traded at $18,999.05 with a daily trading volume of $28,550,005,376. BTC price is down -1.7% in the last 24 hours.
  • It has a circulating supply of 19 Million BTC coins and a max supply of 21 Million.

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Cryptocurrency

$414 million worth of Bitcoin moved by a large entity

A Bitcoin whale has moved 21,846 BTC valued at around $414 million.

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Crypto millionaire carts away with $224 million worth of Bitcoin, Whales transfer Bitcoins at an alarming rate, BTC whale moves 10,250 BTC valued at $95,000,000

Large entities are presently increasing their presence at the world’s most valuable crypto market, as Bitcoin breaches below the $19,000 price level.

What we know: Data obtained from Bitcoin BlockBot, a BTC analytic tracker, revealed that a Bitcoin whale moved 21,846 BTC valued at around $414 million.

READ: Ethereum yearly gains up by 279%, nears $600

READ: Crypto millionaire carts away with $224 million worth of Bitcoin

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At the time of writing this publication, the flagship crypto traded at $18,798.43 with a daily trading volume of $35.3 billion. Bitcoin is down 2.95% in the last 24 hours. It’s presently ranked the most valuable crypto by market value, with a market capitalization of $349 billion.

It has a circulating supply of 18,562,518 BTC coins and a maximum supply of 21,000,000 BTC coins

READ: Nigeria needs $5billion for National Broadband Plan – Chairman, BISC 

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Why this is happening

Crypto traders and investors are now cashing in on some of their gains, as recent price action reveals the flagship crypto broke the key support level of $19,000 amid record inflows coming from institutional investors.

Recent, data from Glassnode revealed BTC Active Supply 2y-3y (1d MA) just reached a 3-month high of 2,548,131.371 BTC.

READ: Nigeria needs $3trillion in 30 years to reduce infrastructure deficit – Osinbajo

  • The previous 3-month high of 2,542,341.460 BTC was observed on 04 December 2020.
  • The amount of circulating supply last moved between 2 years and 3 years ago.

READ: FG to seek international cooperation to curb illicit financial flows

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Explore Data on the Nairametrics Research Website

What this means

While it is difficult to predict market movements, large entities have shown historically that they often determine the crypto trend.

READ: Ripple gains over 171% last month

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Cryptocurrency

Ripple drops over 10% amid profit-taking

XRP traded at $0.565884 and is down by 10.12% in the last 24 hours.

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Crypto owners robbed of 1,150,000 XRP, Ripple owners say XRP will be worth $100, XRP losing steam as BTC & ETH gain investors' funds

Ripple’s digital token XRP is presently under pressure amid selling pressure seen lately across the crypto market spectrum.

At the time of writing, XRP traded at $0.565884. XRP is down by 10.12% in the last 24 hours. It still remains the third most valuable crypto with a market value of $25.7 billion. It has a circulating supply of 45,334,295,892 XRP coins and a maximum supply of 100,000,000,000 XRP coins.

READ: Stellar outperforms many Cryptos, yearly gain hits 233%

Over the past two weeks, crypto traders have pushed XRP prices lower by more than 20%. The volume of Ripple traded in the last 24 hours was about $10 billion. Nairametrics suggests that such moves are prevailing now as investors cash in on some of their gains after the crypto gained more than 170% in November alone.

What you should know

XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.

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READ: Bitcoin jumpstarts strongly, daily trading volume hits $25 billion

  • Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.
  • Ripple (XRP) plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.

READ: 120 million XRP worth $76 million moved by a large entity

Meanwhile, Ripple’s CTO has reaffirmed that the company can be forced by an overwhelming number of market participants to upgrade its processes, regardless of if it agrees with the decision or not, hinting at its strong democratic principles and responding to critics who accused it of often manipulating the process in regards to the liquidity and pricing of XRP. He said:

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There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants rules to change, there is nothing the minority can do to stop them.”

READ: Liquefied natural gas outperforms in Q3, shows more upside

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