NASDAQ and Bitcoin Futures — A Match Made in Heaven?

  • Thomas Hughes

    NASDAQ is planning to introduce a Bitcoin futures market despite the recent slump in prices for crypto assets across the board.

NASDAQ and Bitcoin Futures — A Match Made in Heaven?
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According to a Bloomberg report, the world’s second-largest stock exchange – NASDAQ – is planning to introduce a Bitcoin futures market despite the recent slump in prices for crypto assets across the board. The exchange has been working to receive regulatory approval from the Commodities and Futures Trading Commission (CFTC) and will probably open trading during the first quarter of 2019.

Bakkt (the crypto exchange put up by ICE, which is the parent company of NYSE) is also expected to launch a BTC futures market in January 2019 and SIX Swiss Exchange has just opened trading for the ETP mentioned earlier, so we are getting closer and closer to crypto legitimacy in the eyes of the regulators and big financial institutions.

Charts at a Glance – LTC/USD

Charts at a Glance – LTC/USD

While Bitcoin and most of the other top 10 cryptocurrencies have been tanking, Litecoin seems to have found support at around $27 and shows some potential for limited upside movement. Over the last 24 hours Litecoin lost almost 3%, while over the last 7 days, the coin posted losses of more than 12%.

There’s no doubt the pair is in a downtrend, but currently it seems it may enter a phase of sideways movement or even some bullish action if 27 support holds. The Relative Strength Index has already started to move up, coming from oversold territory, which is a bullish sign, and also the Bollinger Bands are beginning to flatten (or at least their downwards angle is not as steep as before). Despite this, the overall trend is down and according to common practice, you shouldn’t trade against the trend.

Support zone: 27

Resistance zone: upper Bollinger Band followed by 30 and 35

Most likely scenario: sideways, choppy movement inside the Bollinger Bands

Alternative scenario: drop through 0.27 after a touch of upper Bollinger Band

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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