Crypto Trading

What Is An NFT? A non-fungible token (NFT) is a unique virtual asset that has a variety of applications. While often mistaken for traditional cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), non-fungible tokens feature an inherently unique functionality. Like conventional cryptos, NFTs are "tokens" that utilise blockchain technology, but that's where the similarities end. Beginning in early 2020, NFTs became a rapidly growing part of the cryptosphere and an…

Major digital currency exchange Coinbase filed an S-1 registration statement in December 2020, a document that a company must submit before holding a direct listing or an initial public offering (IPO). If a company wants to offer securities under the Securities Act of 1933, it is required to file an S-1 with the U.S. Securities and Exchange Commission (SEC). Coinbase Global, Inc. filed this document confidentially, meaning that until the…

The Libra Association announced 1 December 2020 that it was going by the name the Diem Association, a move designed to help signify the project's evolution. The organisation stated that it was "reinforcing its organizational independence," but also confirmed that it would stick to its original mission of working toward "a safe, secure and compliant payment system that empowers people and businesses around the world." The new name, Diem, is…

There are thousands of cryptocurrencies in existence. Unlike publicly listed stocks, these digital assets are traded on a large number of different exchanges, with no exchange having the same collection of cryptos. With so many exchanges and cryptocurrencies out there, it can be difficult for traders to get a sense of what the digital currency market as a whole is doing. Fortunately, traders can leverage indices to better understand key…

In May 2020, Bitcoin is scheduled to have its third halving, an event that will reduce production of the digital currency by 50%. While the Bitcoin network has experienced two halvings already, in 2012 and 2016, market participants are paying keen attention to this upcoming event to see whether it turns out differently. The digital currency markets have changed over the years, attracting a more diverse group of participants and…

Digital assets are relatively new compared to many other asset classes, and their regulatory framework has changed significantly over the years. Many jurisdictions and their regulatory entities have sought to provide an ideal environment for digital assets. In a February 2020 speech, Hester M. Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), proposed creating a safe harbour period for token sales. Under this plan, which was unveiled…

In the months since the novel coronavirus (COVID-19) gained global visibility, governments around the world responded by taking drastic action. At the time of this writing (27th March 2020), health care professionals had confirmed more than 375,000 cases and more than 15,000 people had died, according to the World Health Organization (WHO). The global outbreak, which the WHO labeled a pandemic on 11th March 2020, has had a significant impact…

Central banks in many different countries have been exploring the potential use of central bank digital currencies (CBDCs), which have in turn drawn the interest of cryptocurrency enthusiasts, industry participants and policy analysts. A January 2020 survey conducted by the Bank for International Settlements (BIS) showed that roughly 80% of the 66 central banks polled were doing some kind of work with these digital currencies. Further, approximately 40% of participants…

IDX Insights, a financial research and development firm, released a cryptocurrency index that it has described as the first "Smart Beta" crypto index. For context, Fidelity defines "Smart Beta" as "an enhanced indexing strategy that seeks to exploit certain performance factors in an attempt to outperform a benchmark index." By leveraging this index, investors can harness factor-based strategies to potentially generate compelling risk-adjusted returns. The index seeks to take advantage…

What Is The Crypto Rating Council? If a digital asset is deemed a security by government regulators, that determination can have major implications for the asset's creators, investors and network. Over the last several years, the U.S. Securities and Exchange Commission (SEC) has sued several companies that issued digital assets, alleging that they sold unregistered securities. While regulators have previously released guidance on what defines a security, many digital assets…

What Is An Initial Exchange Offering? An initial exchange offering (IEO) is a sale of digital assets that takes place through an exchange. An IEO is similar to an initial coin offering (ICO), except that an IEO has the backing of an exchange. IEOs are also different from security token offerings (STOs), which involve sales of digital assets that have been securitised. STOs have their own benefits and drawbacks. More…