Inside first edition of CRYPTO TREND we introduced Crypto Articles Currency (CC) and answered several questions about this completely new market space. There is a lot of NEWS in this market everyday. Here are some highlights that give us a glimpse of how innovative and exciting this market space is:
World’s largest futures contracts exchange to create a futures contract for Bitcoin
Terry Duffy, director of the Chicago Mercantile Exchange (CME) said “I assume sometime in the second week in December you’ll see our [bitcoin futures] contract out for listing. Today it’s hard to short bitcoin, so there’s only one way it can head out. You either buy it or sell it to someone. So you create a two-sided market, I think it’s always much more productive. ”
CME intends to launch Bitcoin futures in the end of the year pending regulatory review. If successful, this would give investors a viable way to go “long” or “short” with Bitcoin. Some sellers of Exchange-Traded Funds have also filed away for bitcoin ETF’s that track bitcoin futures.
These kind of developments have the potential to allow people to invest in the crypto currency living space without owning CC’s outright, or using the services of a CC exchange. Bitcoin futures could make the digital asset considerably more useful by allowing users and intermediaries to hedge their foreign-exchange risks. That could increase the cryptocurrency’s adoption by means of merchants who want to accept bitcoin payments but are wary of it has the volatile value. Institutional investors are also used to trading managed futures, which aren’t plagued by money-laundering worries.
CME’s go also suggests that bitcoin has become too big to ignore, ever since the exchange seemed to rule out crypto futures in the recent past. Bitcoin is about all anyone is talking about at brokerages and dealing firms, which have suffered amid rising but unusually placid markets. If futures at an exchange took off, it would be nearly impossible for any other exchange, like CME, to catch up, due to the fact scale and liquidity is important in derivatives markets.
“You can’t ignore the fact that this is becoming more and more of a story that will not go away, ” said Duffy in an interview with CNBC. There are “mainstream companies” that want access to bitcoin and discover “huge pent-up demand” from clients, he said. Duffy also thinks bringing institutional traders into the market can bitcoin less volatile.
Japanese village to use crypto currency exchange to raise capital for municipal revitalization
The Japanese village connected with Nishiawakura is researching the idea of holding an Initial Coin Presenting (ICO) to raise capital for municipal revitalization. This is a incredibly novel approach, and they may ask for national government help support or seek private investment. Several ICO’s have had critical problems, and many investors are sceptical that any different token will have value, especially if the ICO turns out to be a a different joke or scam. Bitcoin certainly was no joke.
ORIGINAL COIN OFFERING – ( ICO )
We to be able to mention ICO in the first edition of Crypto Craze, so let’s mention it now. Unlike an Initial Open Offering (IPO), where a company has an actual product or service on sale and wants you to buy shares in their company, the ICO can be held by anyone who wants to initiate a new Blockchain project with the intention of creating a new token individual chain. ICO’s are unregulated and several have been total shams. A legitimate ICO can however raise a lot of cash to fund a brand new Blockchain project and network. It is typical for an ICO to generate a high token price near the start and then destroy back to reality soon after. Because an ICO is relatively simple hold if you know the technology and have a few bucks, there have been quite a few, and today we have about 800 tokens in play. These tokens have a name, they are all crypto currency, and with the exception of the very well known tokens, like Bitcoin, Ethereum, and Litecoin, they are dubbed alt-coins. At this time Crypto Trend does not propose participating in an ICO, as the risks are extremely high.