Coinbase, one of the most popular platforms in the United States, missed out on the number one spot in a ranking of crypto exchanges due to a 2019 Bitcoin (BTC) price glitch. The major U.S. crypto exchange and wallet service did not get to the top of the latest CryptoCompare’s crypto Exchange Benchmark rankings because its institutional trading arm Coinbase Pro experienced a major Bitcoin price flash crash in October 2019. CryptoCompare confirmed that the glitch was the primary reason behind the five-point drop for Coinbase in the “Negative Reports” section of rankings.
“Coinbase would be top without this event, and in fact topped our rankings last year in June, before this event,” the firm noted. As reported, Coinbase Pro experienced a system glitch that caused the deletion of some stop-loss orders before Bitcoin’s sharp drop from $9,260 to $9,055 on Oct. 31. That wasn’t the first time when Coinbase experienced a flash crash though. Back in 2017, the Commodity Futures Trading Commission was investigating Coinbase over an Ether (ETH) flash crash that occurred on its GDAX exchange. The GDAX glitch caused Ether to drop to just 10 cents from $317 in milliseconds before quickly recovering.
On Feb. 12, British crypto analytics firm CryptoCompare updated its crypto exchange rankings, releasing an accompanying report covering Q4 2019. The number of analyzed crypto exchanges on the online ranking amounts to 159 platforms at press time. As previously reported, CryptoCompare’s rankings do not rely on aggregate volume data of exchanges but rather represents the firm’s proprietary risk-based method of ranking. As such, New York-based ItBit, currently the 20th-largest crypto exchange by 24-hour volume, is now the top platform of the new Exchange Benchmark, while Winklevoss’ Gemini exchange slipped to second place since the previous ranking release.
In order, the top 10 crypto exchanges in CryptoCompare’s third Exchange Benchmark are ItBit, Gemini, Coinbase, Kraken, Bitstamp, Liquid, Bitfinex, OKEx, bitFlyer and OKCoin. The new top 10 list included only one newcomer, OKCoin, which was allegedly caused by Poloniex’s departure from the U.S. market in October 2019. Poloniex also saw a decline in their market quality score.
CryptoCompare launched its Exchange Benchmark in June 2019 in response to a study that claimed that 95% of volume on unregulated exchanges is fake. The analysis also aimed to warn crypto users about the level of risk across the industry, providing an overview of crypto exchanges based on eight major ranking components including regulation, security and market quality.
According to the latest Exchange Benchmark report, only 16% of analyzed crypto exchanges hold more than 95% of their crypto funds on cold storage, while just 4% of exchanges formally offer some form of crypto insurance. Additionally, crypto exchanges that are located in the U.S., Luxembourg, Japan, and South Korea are among those associated with the lowest level of risk, according to CryptoCompare.
Crypto Derivatives: CME Volume Plummets 89% in 3 Days, SEC Will Rule On ETF
Daily trade volume for Chicago Mercantile Exchange (CME)’s bitcoin (BTC) futures produced a new low for 2020 on Feb. 21, with $118 million worth of contracts changing hands on Friday. The record low came just three days after CME daily volume exceeded $1 billion for just the third time in the market’s history, with CME bitcoin futures producing over 23,000 contracts or $1.1 billion worth of trade on Feb. 18.
Despite the near-record spike in trade activity, CME bitcoin futures volume quickly faded, plummeting by nearly 55 percent the next day. Feb. 20 saw an almost 58% drop, with daily volume falling from $499 million to $211 million. On Feb. 21, CME bitcoin volume fell by roughly half for the fourth day in a row, with a further 44% contraction. In total, CME bitcoin volume dropped by 89% in half a week. The single strongest day of trade on record for CME’s BTC futures took place on May 13, 2019, with $1.3 billion worth of contracts exchanged as BTC tested $8,000 for the first time in 10 months. Daily trade for the contract exceeded $1 billion for the second time on June 27, 2019 – when BTC rallied by $1,500 intraday to post 2019’s high of nearly $13,800.
The U.S. Securities and Exchange Commission (SEC) scheduled to make a ruling on Wilshire Phoenix’s proposed Bitcoin exchange-traded fund (ETF) on Feb. 26, the sole active application for a bitcoin ETF currently under SEC consideration. Despite many crypto analysts dismissing the prospects of Wilshire Phoenix’s Bitcoin and Treasury Investment Trust being approved, the firm’s founder, Bill Herrmann, recently said that the company has “continued to have thoughtful and meaningful discussions with the commission.”
Wilshire Phoenix first submitted a proposal for the bitcoin ETF on June 12, 2019. On Sep. 24, 2019, the SEC initiated proceedings pertaining to the ETF, however, the firm updated its filing the following month in partnership with NYSE Arca, with Coinbase listed as the product’s custodian. At the end of 2019, the SEC extended proceedings until Feb. 26. On Feb. 14, Wilshire Phoenix updated its filing, including the firm’s fees – $2,437, the number of shares it initially intends to register – 8,040, and its maximum share price – $2,500.
JP Morgan: Digital Money Foundation Laid, Blockchain In Banking Years Away
A recent report by a Major United States bank JP Morgan Chase suggested that current blockchain developments are lying down the foundation for digital money, but adoption is still years away. A report published by JP Morgan on Feb. 21 suggests that the finance industry is moving beyond blockchain technology.
Per the paper, the groundwork for mainstream adoption of blockchain, fast payments and digital currencies is already in place. According to JP Morgan, the adoption of blockchain in banking is three to five years away. Still, the bank also believes that project’s like Facebook’s Libra stablecoin calls for a higher degree of centralization:
“For a stablecoin like Libra to succeed, it will likely require short-term liquidity facilities, a source of positive-yielding reserve assets, and less distributed, semi-private networks.”
The report also notes that the cryptocurrency market is showing signs of maturity such as increasing institutional participation and the introduction of new contracts on regulated exchanges. Still, the researchers also point out that crypto assets continue to show extreme price volatility and claim that Bitcoin (BTC) has already cleared “intrinsic value but have yet to demonstrate their value for portfolio diversification.” The document reads:
“Developments over the past year have not altered our reservations about the limited role that cryptocurrencies play in global portfolio diversification or as a hedge instrument.”
JP Morgan itself is among the banks involved in blockchain and crypto asset development. In June 2019, the institution’s head of digital treasury services and blockchain Umar Farooq said that the firm intended to test its JPM Coin digital currency with selected clients before the start of the current year. Earlier this month, reports suggested that JP Morgan is also considering merging its own blockchain platform with that of a major Ethereum-focused firm ConsenSys.
Cryptocurrency And Blockchain News Update 19th February 2020
India To Use Blockchain For Voting
India’s citizens will soon be able to cast votes from outside their city of registration thanks to a blockchain-based system. India’s Chief Election Commissioner said that the country hopes to increase voter turnout with a blockchain-based voting solution.
China Using Blockchain To Fight Coronavirus
With the ongoing coronavirus epidemic, China has turned to blockchain technology to manage medical data, track supply of virus prevention materials and consult the public. For the first two weeks of February, China saw the launch of as many as 20 blockchain-based applications designed to help fight the coronavirus outbreak. Most of the apps are used to manage citizens’ personal data as many people are returning to work this month.
IOTA Updates Trinity Wallet
Following an apparent hack of IOTA (MIOTA) official wallet on Feb. 12, the IOTA Foundation has released a safe desktop version of the Trinity wallet. According to a Feb. 17 update post, IOTA should update their Trinity apps to securely check their balances and transactions via Trinity 1.4.1, a new version that is designed to remove the recently detected vulnerability from the wallets. The new version of the wallet doesn’t apparently represent the full solution of the recent breach because the IOTA’s dedicated network Coordinator, is still on hold
BitcoinAnd Google Scandal
A new extortion scam targeting website owners serving banner ads through Google’s AdSense program has begun circulating the Internet. The malicious scheme demands Bitcoin (BTC) in exchange for preventing an attack, which would purportedly lead to the users’ AdSense account suspension.
Binance Cloud Has Been Launched!
Binance cloud is here, According to the announcement from Binance, Binance Cloud will serve as an all-in-one infrastructure platform for customers and partners to launch digital asset exchanges based on Binance’s industry-leading technology, security, liquidity as well as custodial services. The solution also supports dashboard for managing funds, multilingual functionality, as well as a range of trading pairs and coin listings. The Binance’s new exchange-specific cloud solution will provide users with a method of setting up a crypto platform in their local markets. Binance Cloud’s features include crypto spot market and futures trading as well as local bank API integrations and peer-to-peer exchange services from fiat to crypto, the announcement notes. In the future, Binance Cloud plans to add more features like staking, over-the-counter trading services as well as token issuance with initial exchange offering platform.
Altcoin News4 days ago
Calibra Technical Lead Explains Why Facebook Built New Language For The Libra Project
Blockchain News2 days ago
JP Morgan: Digital Money Foundation Laid, Blockchain In Banking Years Away
Blockchain News4 days ago
NBA & NFL See a Future In Non-Fungible Tokens, But Not Contract Tokenization
Altcoin News2 days ago
Crypto Makes A Cameo On The Simpsons Where Jim Parsons Explains It’s ‘Cash of the Future’
Altcoin News2 days ago
Former CFTC Chair Giancarlo Suggests That The FED Should Create a Digital Dollar
Blockchain News11 hours ago
Big Pharma Pushing FDA to Use Blockchain for Drug Tracking
Altcoin News3 days ago
What Business Sectors Are Realizing the Full Potential of DeFi Protocols In 2020?
Bitcoin News9 hours ago
Finnish Customs No Sure What To Do with 15M Euro Seized in Bitcoin