A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals

A Brief History of the SEC’s Reviews of Bitcoin ETF Proposals

           

It may span only a couple of years, but the history of Bitcoin exchange-traded funds (ETFs)

and the United States Securities and Exchange Commission (SEC) is already a long one. Back in March 2017, the SEC rejected the application for a Bitcoin ETF put forward by the Winklevoss twins, claiming that the underlying Bitcoin market was still too manipulable, volatile and resistant to surveillance. Fast forward to March 2019 and the SEC has still yet to approve a single Bitcoin ETF, with the comments to its latest public consultation remaining largely negative.

Such an absence of major progress may seem fatally discouraging to casual observers hoping for an ETF to provide crypto with added legitimacy. Nonetheless, the intervening period between March 2017 and the present day has witnessed a softening of the SEC's stance, with members of the commission even going so far as declaring that they expect a Bitcoin ETF to be approved sooner or later. There is, then, plenty of reason to draw hope from the SEC's recent dealings with Bitcoin ETF applicants, even if the longer-term history shows that the commission hasn't always adopted a favorable stance toward crypto.

2017: SEC claims manipulability, volatility and absence of surveillance

On June 30, 2016, the Bats BZX Exchange filed a proposed rule change with the SEC, which would have permitted it to list and trade shares of the Winklevoss Bitcoin Trust. If approved, the Winklevoss' ETF would have been the first Bitcoin exchange-traded fund licensed to appear on a fully regulated stock exchange, thereby making it possible for the layperson to gain exposure to Bitcoin without having to actually own the cryptocurrency or wrestle with crypto exchanges or wallets. No doubt this would have represented a big step toward the mainstream for crypto, yet after a long period of deliberation and consultation, the SEC rejected the proposed rule change. On March 10, 2017, it released a statement explaining the reasoning behind its decision, with the difficulty of preventing manipulation and fraud being at the

top of its list.

"Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market — the Commission does not find the proposed rule change to be consistent with the Exchange Act."

Barely two weeks after this judgment had been published, the SEC denied a similar proposal submitted by NYSE Arca, which is owned by the Intercontinental Exchange and which wanted to list the SolidX Bitcoin Trust ETF. Reusing many of the same phrases and declarations, the commission wrote on March 28 that "it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices."

As the two episodes above imply, 2017 wasn't a particularly great year for Bitcoin ETFs or for the notion that the SEC might be inclined to license one of them — because, aside from SolidX and Winklevoss, an ETF from Barry Silbert's Grayscale Investments was registered with the the SEC in January 2017, and it fared no better than its rivals. It was subject to a delay on March 22, after it had received three comments — all negative — from members of the public, and then in September of the same year, it withdrew its application, citing a lack of "regulatory developments" in the crypto market as the main reason for this action.

Between March and September, the public sent the SEC additional comments as part of the consultation, and while they ended up numbering only 21 in total, a portion of them provide insight into why Grayscale Investments wasn't likely to gain approval for its ETF at that time.

For example, a seven-page letter from Mark T. Williams, a finance professor at Boston University, details a long list of reasons as to why a Bitcoin ETF — particularly from Grayscale Investments — wasn't appropriate. These include Bitcoin market flaws, such as "poor price discovery, irregular trade execution, shallow trade volume, hoarding, relatively low liquidity, hyperprice volatility, a global web of unregulated bucket-shop exchanges, high bankruptcy risk and oversized exposure to trading and price discovery in countries outside the jurisdiction of the SEC." Yet, Williams also noted that Digital Currency Group — which owns Grayscale Investments and Coindesk (among other ventures) — "is fraught with inherent conflicts of interest."

But while this would suggest that there was some strong opposition to this particular ETF, other researchers outside the cryptocurrency industry were more positive. "Moving bitcoin trading activity to regulated US exchanges will improve price discovery and reduce the potential for manipulation and money laundering," argued James J. Angel, an associate professor of finance at Georgetown University.

Likewise, professor Campbell R. Harvey of Duke University (and colleagues) wrote that "allowing the Bitcoin Investment Trust to list its shares on the NYSE Arca as a bona fide Exchange-Traded Product (‘ETP’) would demonstrate the Commission’s utmost commitment to achieving" its aims of protecting investors, maintaining efficient markets and aiding capital formation. Given that six other economists from six other American universities signed this statement, it revealed that there was actually considerable support for the idea of a Bitcoin ETF, even if the SEC couldn't be disabused of its view that the cryptocurrency market was still too anarchic for it to approve such a fund.

2018: Growing support from the wider industry

As 2017 came to close, there was then a very real sense that the SEC viewed the Bitcoin market with suspicion, and that its sceptical views on the market were reinforced by a significant chunk of the comments it had received from people outside of the crypto industry. However, this unfavorable situation began to change gradually over the course of 2018, because, even though the SEC continued to reject Bitcoin ETFs, dissenting voices from within the commission began emerging.

This was most in evidence in July, when the SEC rejected — for a second time — the Winklevoss Bitcoin Trust proposed for listing by the Bats BZX Exchange. Once again, it judged that Bats' proposal failed to demonstrate that it was consistent with rules "designed to prevent fraudulent and manipulative acts and practices." However, it took the unusual step of adding a disclaimer to this rejection, writing, "Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment." Even more significantly, Hester Peirce (now dubbed “Bitcoin Mom” by the community) dissented from this decision, despite being a commissioner at the SEC. On July 27,

she wrote:

"The disapproval order focuses on the characteristics of the spot market for bitcoin, rather than on the ability of BZX — pursuant to its own rules — to surveil trading of and to deter manipulation in the ETP shares listed and traded on BZX."

This open dissent from an SEC commissioner indicated a subtle turning of the tide in favor of Bitcoin ETFs. And while one of the comments submitted during the brief SEC consultation in May was trenchantly hostile to the Winklevoss ETF, most were supportive. More importantly, the supportive letters and comments didn't always come from people working directly within the crypto industry, with four companies operating within the global exchange-traded products market providing key testimony in favor.

For example, C&C Trading concluded in its comment that it "supports listing the COIN ETF and believes it will be an innovative product for investors and market professionals to trade," with the ETF market-making specialist also adding that many existing ETFs "are based on opaque and illiquid underlying instruments." Still, despite the fact that wider industry and public opinion was in general warming to the idea of Bitcoin ETFs, 2018 unsurprisingly set the record for the number of proposals dismissed by the SEC. On Aug. 22 alone, the commission rejected nine applications, with the likes of Direxion, ProShares and GraniteShares having their applications turned down (and in some cases, more than one application). And once again, the SEC explained these rejections mostly in terms of a failure to prove that the applicants' rules were "designed to prevent fraudulent and manipulative acts and practices."

The fact that the commission remained fixed to this point of view shouldn't be surprising, not least because this decision followed soon after the publication of fairly damning research into crypto-market manipulation. In June, University of Texas researchers released a paper concluding that Tether and Bitfinex manipulation was responsible for around 50 percent of Bitcoin's price rises in 2017. Barely a month before, the U.S. Department of Justice had opened a criminal investigation into Bitcoin price manipulation, while, at the beginning of August, the Wall Street Journal published a study that found that price manipulation was mostly being perpetrated by “trading groups” using Telegram and other messaging services.

2019: Increased hope despite decreased momentum

In light of all this negative publicity, it's unsurprising that the SEC continues to refuse the approval of a Bitcoin ETF. And while nothing has essentially changed in 2019 (and no ETF has so far been approved), there is once again increased cause for hope. In February, Robert J. Jackson Jr. – a commissioner with the SEC – went on record as saying that he expects the commission to license a Bitcoin ETF

sooner or later.

“Eventually, do I think someone will satisfy the standards we’ve laid out there? I hope so, yes, and I think so.”

That same month, a commissioner with the Commodities and Futures Trading Commission (CFTC) criticized the SEC for having rejected previous ETFs on the grounds of potential price manipulation. Speaking at the BiPartisan Policy Center in Washington D.C.,

Brian Quintenz said:

"There are mathematical ways through a settlement index to design a contract where even if there isn’t a lot of liquidity on one exchange referenced, the index itself is not readily susceptible to manipulation."

Added to Hester Peirce's continued support for the crypto industry, such remarks indicate a climate in which the SEC is becoming incrementally more receptive to the idea of a Bitcoin ETF, despite Peirce’s warning in December 2018 that an approval could take longer than some people would hope. Indeed, an approval could take some time, since the prognoses for the ETFs currently under review don't look especially encouraging. In February, Reality Shares withdrew its own ETF trust after the SEC had encouraged it to do so, largely because the ETF took the unusual step of combining Bitcoin futures, sovereign debt instruments and money market mutual funds into a single derivative. And while there has been some hope in the Chicago Board Options Exchange's (CBOE) reapplication for a Bitcoin ETF, this has been dampened by the public's largely negative response to the application.

Of the 18 comments submitted to date (between Feb. 13 and March 31), only three were in favor of the ETF. However, it would be extremely rash to conclude on the basis of 15 disapproving comments that the general public or the wider financial industry are growing increasingly weary of the idea of a Bitcoin ETF. That's because some of these comments lack any real credibility, being either extremely minimal at best or downright incoherent at worst. As for the other, even though they generally argue their points with more depth and rigor, they're all from repeat commentators. The two contributions of a one “Sam Ahn” are his eighth and ninth, for instance, while "investment professional" Jonathan Harris has sent at least two very similar letters containing general Bitcoin-scepticism, as well as one from April 2017.

This reappearance of entrenched critics undermines any suspicion that opposition to a Bitcoin ETF somehow might be growing. However, by much the same token, it's discouraging to note that there aren't really any significant contributions to the consultation on CBOE's latest application. While it's hard to conclude anything on the basis of a single proposal, this might indicate that the push for an ETF is losing some momentum — or, at least, publicity. At the very least, interest from the wider public and from industries outside of crypto may be waning, even though the cryptocurrency industry remains firmly behind the idea.

And even if interest is waning, this is likely due to a recognition that it isn't letters from the public that will now sway the SEC, but actual evolution in the maturation and regulation of the cryptocurrency industry. And because there have been multiple developments on this front — from the United States to Russia and Japan — it's likely only a matter of time before the SEC approves its first Bitcoin ETF.

Article Produced By
Simon Chandler

Simon Chandler is a journalist based in Hove, UK. He writes mostly about technology, with his specialties including cryptocurrencies, AI, VR, and social media. He also occasionally writes about politics, culture and music, and has contributed to the likes of Wired, the Daily Dot, the Verge, Computer Weekly, Techcrunch, Bandcamp Daily, the New Internationalist, the Kenyon Review, and Tiny Mix Tapes

https://cointelegraph.com/news/a-brief-history-of-the-secs-reviews-of-bitcoin-etf-proposals

TokenPay Seals Equity Deal in Australian Lingerie Giant Naked Brand Group

TokenPay Seals Equity Deal in Australian Lingerie Giant Naked Brand Group

            

Swiss decentralized payment startup TokenPay has acquired a large number of shares

in an Australian lingerie giant, a document originally issued on March 19 reveals. According to the filing, TokenPay purchased 1,840,216 shares of Naked Brand Group’s (NAKD) common stock, a 6.2 percent stake. The company has various brands on the market, perhaps the best-known of which is supermodel Heidi Klum’s Intimates line. Explaining the impetus behind its choice of spending and subsequent area for development, TokenPay revealed NAKD had in fact suggested it was curious about blockchain technology. “Why the move into lingerie? $NAKD management has expressed interest in exploring blockchain technology,” TokenPay wrote on Twitter on March 27,

continuing:

“It also operates iconic fashion brands w [with] $100m in sales, mostly to women. This is an undertargeted market in our industry. Potential for excellence by embracing crypto is real.”

Once the NAKD deal completes, TokenPay hinted there would be the option to purchase the company's products using crypto. As Cointelegraph reported, TokenPay has branched out into unanticipated industries before. In June last year, the startup partnered with the nonprofit body behind Litecoin (LTC) to acquire a roughly 10 percent stake in a German bank. Prior to that, a $2.5 million token investment saw TokenPay support efforts by privacy-focused cryptocurrency Verge to make major adult entertainment website Pornhub support its XVG token. The project appeared to have mixed success.

Article Produced By
William Suberg

William Suberg got into Bitcoin while completing his Masters degree and hasn't looked back since, writing about anything crypto-related which makes him sit up and pay attention. He started working with Cointelegraph in October 2013.

https://cointelegraph.com/news/tokenpay-seals-equity-deal-in-australian-lingerie-giant-naked-brand-group

Tim Draper Urges Argentina’s President to Legalize Bitcoin to Improve Economy

Tim Draper Urges Argentina’s President to Legalize Bitcoin to Improve Economy

           

Crypto bull Tim Draper has given advice to the president of Argentina

to legalize Bitcoin (BTC) in order to improve the economic situation in the country, Cointelegraph en Español reports March 22. The American venture capital investor reportedly met with Argentina’s president Mauricio Macri on March 20 to discuss the economic prospects of the Latin American country. During the meeting, Draper spoke about the potential of emerging technologies such as blockchain and crypto for improving major problems in Argentina's economy, including the devaluation of the Argentine peso (ARS), as well as the associated brain drain. Cointelegraph en Español quotes

Draper as saying:

"We were speaking of Bitcoin and the devaluation of the peso, and I proposed a bet: if the peso would be valued more than Bitcoin, I would double my investment that I was making for the country. But if Bitcoin gained a higher rate than the peso, they would have to declare it as a national currency. That would be a perfect decision, as there's a lack of confidence in this coin.”

Following the meeting, Draper explained his pro-crypto stance in an interview with María Julieta Rumi, noting that he believes Bitcoin and blockchain are even a greater revolution than the internet. Draper stated that it is now a good time to adopt the technology in Argentina, arguing that this will provide complete changes in banking, commerce, and financial systems.

In the interview, Draper also reiterated his bullish stance on Bitcoin, predicting that Bitcoin will be worth $250,000 between 2022 and 2023, and will account for 5 percent of the global share of all the markets. He elaborated that as soon as people are able to easily use bitcoin, just like pesos or dollars, they will choose bitcoin because it is “decentralized and open, frictionless and global.”

In February, Draper argued that in five years, fiat money will be used only by criminals. Meanwhile, Argentina has recently been friendly to adopting new developments in the blockchain and crypto space. In early March, the government of Argentina agreed to co-invest in blockchain projects that are backed by Binance Labs and Latin American crypto exchange LatamEx. Binance CEO Changpeng Zhao also hinted at the establishment of a new fiat-to-crypto exchange in Argentina. In February, Argentina settled an export deal in Bitcoin, selling pesticides and fumigation products worth of $7,100 to Paraguay. The purchase was paid for in Bitcoin and then converted into Argentine pesos to settle accounts with the exporter.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/tim-draper-urges-argentinas-president-to-legalize-bitcoin-to-improve-economy

Gaza’s Ruling Group Hamas Seeks Funding in Bitcoin to Combat Financial Isolation

Gaza's Ruling Group Hamas Seeks Funding in Bitcoin to Combat Financial Isolation

  

The militant arm of Hamas —

the de facto ruling authority of the Gaza Strip in Palestine — has appealed to its supporters to send it funds using Bitcoin (BTC). The appeal was made via the official Telegram channel of Abu Obeida, a spokesman for Hamas’ Izz ad-Din al-Qassam Brigades, on Jan. 29.

Hamas — which comprises social service arm “Dawah” and militant faction “Izz ad-Din al-Qassam Brigades,” is deemed to be a terrorist organization, in whole or in part, by several countries and international organizations — including the United States and the European Union. Russia, Turkey and China are among those major world powers who do not designate the group as a terrorist entity. In his message, Abu Obeida called upon “all lovers of the resistance and the supporters of our righteous cause to support the resistance financially using ‘Bitcoin’ currency,” adding that an exact funding mechanism for transacting the crypto would be announced later.

He continued:

“The Zionist enemy is fighting the resistance by trying to cut its support by all means, but the resistance lovers in all the world are fighting these Zionist attempts and are seeking to find all possible support for the resistance."

Hamas has governed the Gaza Strip since 2007, after winning a military conflict against the Palestinian nationalist political party Fatah — a struggle for power that ensued from the latter’s defeat in the parliamentary elections of 2006. The Gaza Strip notably continues to be subject to a land, air and sea blockade imposed by Israel and Egypt in the wake of Hamas’ victory, which severely restricts the movement of people and goods.

Abu Obeida’s turn to Bitcoin comes in the immediate context of Israeli Prime Minister Benjamin Netanyahu’s decision to temporarily freeze millions of dollars in Qatari aid — including $15 million a month to pay the salaries of Hamas civil servants — from entering the Gaza Strip, in retribution for a recent flare-up in border tensions between Israel and Hamas. Aside from the Gaza Strip blockade, given Hamas’ designation as a terrorist entity in many Western countries, many global banks bar services to the group via their anti-money-laundering (AML) and illicit terror financing prevention mechanisms.

As reported, the U.S. House of Representatives passed a bill last September that would establish a crypto task force to combat terrorist use of cryptocurrencies. A congressional hearing earlier that month had nonetheless concluded that while al-Qaeda, the Islamic State and other such terrorist groups have all attempted to raise funds through crypto, their success has been limited — and that in many instances, fiat currencies provide more robust anonymity for illicit fundraising.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/gazas-ruling-group-hamas-seeks-funding-in-bitcoin-to-combat-financial-isolation

Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

  
 

 Binance, a pure crypto-to-crypto exchange,
has been found to still be on top of the cryptocurrency exchange market, at a time in which exchanges using the controversial trans-fee mining model have been gaining a bigger piece of the pie. According to CryptoCompare’s December 2018 Exchange Review, Binance has managed to maintain its status as the number one crypto exchange in the ecosystem last month. The document shows that, on average, $664 million worth of cryptocurrencies changed hands on the exchange per day, for a total of $20.5 billion traded in December.

Binance was seemingly also the most visited exchange, after receiving 2.2 million visitors. Its users are currently able to trade 166 cryptos on the platform, on a total of 427 trading pairs. Behind Binance came OKEx, which traded $19.2 billion in December. While Binance, by itself, represented little over 10% of the cryptocurrency exchange market, CryptoCompare also found that exchanges using the controversial trans-fee mining model, which has been described as a “disguised ICO” revenue model, as it reimburses users’ trading fees with tokens.

Trans-Fee Mining Exchanges Gain Market Share

According to the report CoinBene, the number one cryptocurrency exchange using the controversial revenue model, traded $10.4 billion in December, followed by ZBG and EXX, which traded $5.13 billion, and $4.58 billion respectively. In total, trans-fee mining exchanges traded $23.2 billion, equivalent to 12% of the global spot trading volume, up from 7% in October. It has in the past been found that these exchanges have unusually thin order books, and a relatively low amount of traffic, taking into account the total trading volume they have. Thin order books mean these exchanges can see large price swings if their order books face large orders.

Order Book Depth Drops on Top Exchanges

Per CryptoCompare’s report, top cryptocurrency exchanges would have to, on average, face a $2.56 million sell order to see bitcoin’s price crash 10%, a figure that has dropped since November, and is lower on trans-fee mining exchanges.

The report reads:

Bitfinex, Kraken and Bitstamp maintained the most stable markets in December, while exchanges CoinBene, Bitforex, IDAX showed thin markets combined with high volumes.

It adds that on Bitfinex, where an average of $68.5 million were traded in December among its top 5 trading pairs, it would take a $9.5 million order to crash the price 10%, while on CoinBene it would take only a $13,600 order. An analysis of the crypto exchanges’ web traffic showed that these exchanges attracted “significantly lower daily visitors than similarly-sized exchanges.” CoinBene, for example, received 48,000 visitors per day, and traded $10.4 billion in December, while exchanges like Bitfinex and HitBTC with “similar high volumes” attracted over 360,000 visitors.

Article Produced By
Francisco Memoria

News Reporter

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2019/01/binance-is-still-the-dominant-exchange-and-trans-fee-mining-exchanges-are-gaining-market-share/

Bitcoin Has Jumped 82000 Percent over the past Seven Years and Declared Dead for 91 Times in 2018

Bitcoin Has Jumped 82,000 Percent over the past Seven Years and Declared Dead for 91 Times in 2018

   

Bitcoin was declared 91 times as dead this year alone,

and 337 times so far. But despite the current bear cycle, data show that Bitcoin has grown more than 82,000 percent over the last seven years.

Bitcoin “died” 91 times in 2018

According to the website Bitcoin Obituaries, there were 91 publications in 2018 that announced the demise of Bitcoin (internationally even much more). Interestingly, even in 2017, the number was 125, the number actually increased after Bitcoin reached its all-time high of about $20,000 in December. Altogether, the black painters, according to the website, Bitcoin since 2010 for 337 times declared dead. But how dead can it be if it works around the clock with near-full availability and has been operating for over a decade now?

82,000 percent growth in the last seven years

It is true that the continued bear market has been steadily adversely affecting Bitcoin price. Bitcoin is currently trading more than 80 percent below its all-time high so far. However, if you measure Bitcoin only in terms of its price in dollars, it turns out that Bitcoin not only that is not dead but has actually grown by more than 82,000 percent in the last seven years. In addition, the basics are still intact, while other metrics, such as hash rate (network security) and layer 2 scaling solutions (such as the Lightning Network) are actually experiencing unprecedented growth.

Bitcoin acceptance is a real

Regardless of how often the black painters have announced the sinking, so does the number of investors own or use Bitcoin. Four separate studies by the Ontario Securities Commission and the Central Bank of Canada show that three to five percent of Canadians own Bitcoin.

Another survey conducted by the market research institute YouGov revealed that up to nine percent of British residents own the cryptocurrency, while 90 percent have since heard of Bitcoin and cryptocurrencies. In addition, the state of Ohio accepts Bitcoin for tax payments. And for what is supposed to be “dead”, over $410 billion was transacted in 2018 over the Bitcoin network or an average of $13,000 per second (despite its falling value). After all, this is not the first time the cryptocurrency has suffered 80 percent loss. However, as it turns out, Bitcoin came back every time and reached an even higher level.

Article Produced By

Vidrih Marko

I love writing, and that is why I do it. A passion for not only providing the information but for helping people understand.

https://medium.com/@VidrihMarko/bitcoin-has-jumped-82-000-percent-over-the-past-seven-years-and-declared-dead-for-91-times-in-2018-77da724c6397

 

Your Bitcoin is Worth 15000 to Us

Your Bitcoin is Worth $15,000 to Us

Markethive has made a very bold statement.

We are so confident in this year, regardless of the crypto bear markets, the massive ICOs failures, the compounding Government regulations, the incessant attacks by the financial elite and the pounding of the negative media attention, that Markethive is laying it on the line. Even one of my mentors Tom Lee who is most outspoken and positive regarding Bitcoin is being slammed and called Dubious. Many critiques are predicting the total demise of Bitcoin. I disagree, but then I could be wrong.

                    

This is why I am claiming and giving Bitcoin value of $15,000 for the purchase of one of our ILPs which are valued at $15,000. I think Thomas Lee is brilliant and correct in his assessment that even though the market has degraded Bitcoin it holds a greater value than we realize.

We have been in a long pre-launch crowdfunding mode since April 2018. We have raised over $500,000 since we started Markethive and have been able to build the most advanced Inbound Marketing platform (rooted in my previous 20 year company Veretekk) integrated into a powerful comprehensive social network. Now we are building a series of integrated commerce platforms. An open service freelance platform, a media oriented (video, audio, copy, animation, production services) platform and a crypto | fiat exchange and platform.

                                                                    

Since we began the automated marketing tech platforms back in the mid-90s called Veretekk (the first Inbound Marketing Platform by 20 years) we built this before Google was even a thought, back when AltaVista was the dominant search solution. Here is the mission statement of Veretekk back in 2002. Sounds just like Inbound Marketing today, yes?

Inetekk's new Veretekk system has in-depth sophistication with ease of use and navigation. Basically, you use our system to build massive verified email lists to market your portfolio of free Inetekk services (ie: Free FFA lead systems, free search engine submissions, free vacation coupons, free software, free websites, free ebooks, etc. that have real value) which in turn, gets extensive prospect database profiles (like their phone numbers) into your management database (We call it your "Lead Processing Center), so you can develop "real" relationships which build your sphere of influence. This sphere of influence then enables you to build a substantial organization for "YOUR OPPORTUNITY", not OURS!

Additionally, you also build your verified email database of 1,000s of addresses allowing you to send a weekly opportunity/marketing/newsletter type of publication with your Drip Control Panel "Semi Autoresponder".

Quoted from Archive.org’s historical capture of Veretrekk April 01, 2002.
https://web.archive.org/web/20020401223553/http://www.veretekk.com:80/

Article Produced By
Thomas Prendergast

https://markethive.com/group/marketingdept/blog/your-bitcoin-is-worth-15000-to-us

Markethive makes bold move to acquire Bitcoins

Markethive makes bold move to acquire Bitcoins

Markethive CEO makes a bold move to accept Bitcoin based on current projections as valued at $15,000 in his end of year prelaunch crowdfunding for limited ILP shares.

 

   

 

"We are offering you a value for your Bitcoin

of $15000 in regards to acquiring our ILPs. Regardless what the market value of Bitcoin and there are many experts predicting Bitcoin will bottom out at $2500 and even a few antagonists claiming Bitcoin is going to hit zero and disappear. We are ready to take that risk. Primarily because we have high confidence in both Bitcoin and Markethive.

This offer is by way of Bitcoin. To take us up on this offer you must send us Bitcoin. Yes, this is a limited offer, so you know what to do. In other words, beginning now in the last of 2018 and into 2019 until we have traded 100 ILPs the offer for 1 Bitcoin as payment in full for 1 ILP valued at $15,000 stands."

Not sure what an ILP is? It has been illustrated in great detail here

BITCOIN: STOP Focusing Only On Price. What is Fair Value?

Thomas Lee, head of research at Fundstrat Global Advisors, "User adoption and Bitcoin's acceptance as an asset class are key factors that will push it higher in the future." Lee's explanation for the digression is due to last year's meteoric rally, a meltdown in the macroeconomic climate and treasury sales during initial coin offerings.

Thomas Prendergast, CEO, of the world's first Market Network on Blockchain, Markethive, adopts the same sentiments as he has noted. "Interesting parallel with Tom Lee Fundstrat co-founder and myself, we are two men with vastly different backgrounds, but both strong advocates of crypto both recognizing the damages caused by the huge expansions of the ICO crowdfunding campaigns of 2017 and particularly 2018 by people of questionable character." Thomas Prendergast and Douglas Yates, CTO, and Co-founder agree with Tom Lee's assessment regarding the actual fair value price of Bitcoin is around $14,000, hence the announcement stated above.

Thomas Prendergast Markethive CEO is often quoted saying,

"Market networks have been defined as the logical evolution of aging social networks. The SaaS and commerce platforms are integrated with the social network in Market Networks such as Markethive. Techcrunch is quoted in an article, 'Market networks will produce a new class of unicorn companies and impact how millions of service professionals will work and earn their living."

CTO and Co-founder of Markethive Douglas Yates quoted:

"In order to fund the Universal Income for entrepreneur's aspects within the realm, Markethive also adds additional revenue-producing systems. Markethive is now in its final stages of implementing the blockchain and about to deliver the first of many Infinity Airdrops of the consumer coin, to the associates of this ingenious platform. There is also the strategic partnership with the GreenHouseHives which are self-generating powerhouses, These facilities also become a decentralized data storage system for various hybrid advanced blockchains, forked from Markethive's blockchain system.Markethive is fully operational as a beta platform, the coins have been created, the blockchain is in place, and every milestone in the white paper to date has been met on time."

To learn more about Markethive, please visit our blog.

Photos: 
https://www.prlog.org/12746145 

Press release distributed by PRLog

SOURCE Markethive Inc.

Related Links

http://www.markethive.com

Article Produced By
Thomas Prendergast (CEO)

https://www.prnewswire.com/news-releases/markethive-makes-bold-move-to-acquire-bitcoins-300771576.html

Investor: Bitcoin is Undervalued Individuals Building on it Will Lead to Recovery

Investor: Bitcoin is Undervalued, Individuals Building on it Will Lead to Recovery

  

Over the last 48 hours, following a large loss on Christmas,

the Bitcoin price has recovered back to around $4,000. The dominant cryptocurrency, which still holds a market valuation of over $64 billion, has demonstrated wild volatility in a wide price range from $3,100 to $4,300 throughout December, struggling to recover to November levels. Last month, the cryptocurrency market was valued at around $220 billion. As of December 28, the valuation of cryptocurrencies remains at $133 billion, down $87 billion within a 30-day span.

Key to the Recovery of Bitcoin

According to Francis Pouliot, the CEO and co-founder of Bull Bitcoin, a company based in Canada, the asset will recover as individuals continue to build on top of the protocol and the infrastructure supporting the currency strengthens. Throughout the past nine years, Bitcoin has consistently survived major corrections, which on some occasions worse than the 2018 bear market, as the builders, developers, and companies prepared to support the next wave of investors and users during a market downturn.

Pouliot said:

The way I see the price of Bitcoin: there are fundamental psychological, economics and social tenants that seem to create a similar pattern. Price rises fast, crashers down but at higher ladder with the new skin in the game added as value hodlers is discovered by the market. As an investor my these focus on the tail of distribution of Bitcoin network/ecosystem participants. Top new people active with skin+soul in the game, momentum, influence, resources, commitment, ideology, full nodes, sovereignty. It is People that give Bitcoin its value.

Cryptocurrencies were not present in the past when the global market demonstrated signs of a full-blown recession, and as such, the narrative of Bitcoin as a safe haven asset is yet to be tested by the market. However, with leading economists expecting the U.S. stock market to face larger sell-offs in the first quarter of 2019 triggered by the rising Federal Reserve interest rate and the trade war between the U.S. and China, Bitcoin could serve as an alternative means of payment and long-term investment throughout the years to come. On Time Magazine, Alex Gladstein the chief strategy officer at the Human Rights Foundation,

wrote:

To be sure, Bitcoin is still a nascent technology, and doesn’t offer cutting-edge usability, speed, or privacy. But engineers are constantly working to bring those attributes to Bitcoin by building better apps and on-ramps, upgrading the base protocol, and creating new second layer technologies like the Lightning Network, which could eventually mask and dramatically scale the number of possible bitcoin transactions per second.

Risk of Future Crash Declines

Throughout the past two years, many cryptocurrency-focused hedge funds have emerged with the intent of holding onto crypto assets as a long-term investment. In the long run, Pouliot emphasized that as these hedge funds acquire tens of thousands of Bitcoin, the circulating supply of the digital asset will decline, restricting the potential amount of Bitcoin investors could buy in the public market.

Article Produced By
Bitcoin Analysis

https://www.ccn.com/investor-bitcoin-is-undervalued-individuals-building-on-it-will-lead-to-recovery/

Seven Cryptocurrency Trends to Look out for in 2019

Seven Cryptocurrency Trends to Look out for in 2019

    Another year is coming,

filled with fresh optimism and newfound determination to make 2019 the year when cryptocurrencies take over. Having gotten their calls badly wrong for 2018, so-called experts will be hesitant to make bullish price predictions for 2019. That’s probably for the best since there are far more interesting things to focus on than price action. Here are seven trends that should dominate the cryptosphere over the next 12 months.

2018 Didn’t Play Out the Way it Was Promised

                                                 

This time last year, all kinds of bold predictions were being issued for what 2018 would hold for the crypto space. In the event, the biggest trend of the year was one which few futurologists foresaw – stablecoins. 2018 will go down as the year the markets went south and ICOs died off, leaving a new wave of digital assets to shine – dollar-pegged stablecoins. Love, hate or tolerate them, there’s no denying that stablecoins were a recurring motif this year. Whether they will continue to dominate in 2019 depends to a large extent on how conventional crypto assets perform. Should the current bear market persist, or bite deeper still, stablecoins will remain ubiquitous. If more favorable market conditions return, however, stablecoins will be forced to take a back seat, leaving the following trends to joust it out in 2019.

New Privacy Protocols Will Gain Traction

With the Mimblewimble-powered Grin and Beam cranking into life, the stage is set for 2019 to be the most private year in crypto in a long time. The last few years of encroaching blockchain surveillance have stripped away a lot of the anonymity that cryptocurrency users once took for granted, but the fight back has begun. It’ll take more than a single privacy protocol to restore the imbalance of course, so it’s just as well there’s a host of privacy-minded tools set to come onstream.

Aside from the Mimblewimble coins, there’s the prospect of Bitcoin Core getting Schnorr signatures next year, which could open the door to privacy tech such as Coinjoin at some point. Before then, we’ll be seeing a lot of other pro-privacy platforms, apps and protocols gaining traction. Wasabi Wallet, a privacy-focused BTC wallet, will hoover up new users, while Ethereum may get its own take on confidential transactions courtesy of Aztec protocol. Stablecoins could get private too should Zkdai – zero-knowledge DAI transactions – become a thing. Pro-privacy projects like Dust and Loki should also make progress, while new projects such as Resistance, a privacy coin and accompanying DEX, are in the works.

STOs Will Replace ICOs

2018 was meant to be the year of security tokens until it wasn’t. That prediction can be rolled over to 2019, however, when it might just come true provided the technical and regulatory hurdles can be cleared by enough applicants. What’s beyond dispute is that 2018 killed the ICO, and no one is tipping the crowdfunded utility token model to rise again. The increased legal and compliance costs of holding an ICO, which now average around $1 million, have put paid to the vast majority of initial coin offerings.

   

The ICO market died off dramatically in 2018.

Amazix head analyst Jose Macedo believes the security token offering (STO) will become the standard model most crypto-based projects deploy. “While utility tokens are far from dead, what the industry has now realized is that few of these token economic models actually made sense in terms of long-term value capture,” he explains. “As a result, we’re seeing a lot of projects come to us looking for help in either launching their STOs or restructuring their ICOs as STOs,” adds Macedo.

He continues:

We’re also seeing a lot more STO infrastructure be built out in terms of quality legal, token sale platforms, book-building firms, exchanges etc … As of right now, we have about $1B worth of STOs partnered with us looking to launch in 2019.

While security token projects are poised to launch in proactive territories like Malta and Gibraltar, where regulatory frameworks have been drawn up, slower progress is expected in the U.S., where fundraising options are limited. There, the SEC will likely deem most ICOs to be issuing securities. American crypto-based projects are no closer to being granted Reg A+ approval to launch an STO, despite some, such as Gab, having filed the paperwork over a year ago.

Decentralized Credit Networks Will Take Off

Decentralized credit networks made huge strides this year in terms of infrastructure development. The tools necessary to facilitate collateralized loans, social credit and open finance have been fine-tuned and proven to work. 2019 will be when they scale up and start to serve the sort of users they were envisioned for – global citizens who’ve been excluded by the current financial system.

Crypto debt markets and credit networks will be bolstered by the growth of projects like Dharma Protocol, GEO Protocol, Nexo, and Maker DAO. Maker’s system of multi-asset over-collateralization will be emulated, having proven its robustness through extreme market volatility this year. Multi-collateral dai will see a wide range of applications in 2019, as the number of users grows with the number of assets that can be collateralized. 2018 was all about ETH, but in 2019 Maker will accept BTC, ERC20s and other crypto and non-crypto assets.

Other Trends to Expect in 2019

It’s possible that 2019 could be the year when one or more dapps finally sees mass adoption, but don’t count on it. It may also prove to be the year when the first viral  blockchain game arrives. At the very least, crypto collectibles and virtual reality projects will attract fresh investment, with non-fungible tokens (NFTs) tethering them to public blockchains to facilitate the trading of digital assets. Once Decentraland’s virtual world launches in 2019, a meeting ground for all kinds of crypto games and projects will be established.

The Bitcoin Cash community will continue to find new ways to spend and receive peer-to-peer cash, while the BTC brigade will have optimism that 2019 will finally be the year when the Lightning Network proves its suitability for something more than purchasing stickers. Custodial services for institutional investors will improve, bringing new money into the crypto space (but probably not propelling crypto assets to new highs). NYSE’s Bakkt will launch, bringing physical BTC futures contracts, and there’s an outside bet the SEC might approve a bitcoin ETF. Stripped of much of the greed that characterized the dawn of 2018, and with 12 months of robust infrastructure work completed, 2019 is shaping up to be an exciting time for cryptocurrency users from all tribes, countries and continents.

Article Produced By
Kai Sedgwick

Kai's been playing with words for a living since 2009 and bought his first bitcoin at $19. It's long gone. He's previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs.

https://news.bitcoin.com/seven-cryptocurrency-trends-to-look-out-for-in-2019/