Coin Desk

Nearly 500 Crypto Startups Bank at Silvergate, IPO Filing Reveals

Nearly 500 Crypto Startups Bank at Silvergate, IPO Filing Reveals

Coin Desk
The California-based parent of Silvergate Bank has detailed its relationships with the cryptocurrency industry as part of its IPO filing with the Securities and Exchange Commission (SEC). Touting itself as “The Banking Platform for Innovators” in its S-1 prospectus, filed with the SEC on Nov. 16, Silvergate Capital disclosed that the bank now serves 483 crypto clients, with a combined $1.7 billion in non-interest-bearing deposits as of Q3 2018. The number of clients is up from 114 on Sept. 30, 2017, marking an increase of 323 percent. Its primary customers are crypto exchanges, with $793 million in deposits; institutional investors such as hedge funds and VC funds taking a focus on crypto assets, with $573 million in deposits; and other firms including new protocol developers and miners, w
Circle’s Dollar-Tied Stablecoin Fully Backed, Auditor’s ‘Attestation’ Says

Circle’s Dollar-Tied Stablecoin Fully Backed, Auditor’s ‘Attestation’ Says

Coin Desk
Circle Internet Financial had just under $127.5 million backing the dollar-pegged USD Coin at the end of last month, enough to redeem every token at the time, according to a major auditing firm. Grant Thornton LLP, the U.S. branch of Grant Thornton International, reported in an attestation dated Nov. 16 that Circle had $127,412,240.89 held in custody accounts as of Oct. 31, 2018, slightly exceeding the 127,408,827 USDC tokens in circulation at the time. As of press time, there were 162,968,332 USDC tokens in circulation, according to CoinMarketCap, with a total supply of 163,204,910.03 according to the token tracker attached to the USDC smart contract. While not a full audit, the report confirmed information provided by Circle chief financial officer Naeem Ishaq about the funds backing up ...

In First Since 2015, Bitcoin’s Price Is Testing a 200-Week Average

BITCOIN, Coin Desk
The pace of bitcoin’s ongoing sell-off is setting new records with every passing day, the latest being its test of a key long-term moving average for the first time in three years. Indeed, the world’s most valuable cryptocurrency network fell below its 200-week exponential moving average (EMA) of $4,180 yesterday, marking the first break of the crucial support since August 2015. Back then, BTC was changing hands around $220, according to Bitstamp data. The breach of long-term support, however, was short-lived as record low readings on the relative strength index (RSI) likely put a bid under BTC, helping it regain some poise. At press time, BTC is changing hands at $4,440, having clocked a 14-month low of $4,048 yesterday. Notably, the recovery has established the 200-week EMA as the level
Four More ICOs Hit with Cease-and-Desists by Colorado Securities Regulator

Four More ICOs Hit with Cease-and-Desists by Colorado Securities Regulator

Coin Desk
The Colorado Division of Securities has issued another batch of cease-and-desist orders against allegedly fraudulent initial coin offerings (ICOs). The watchdog announced on Tuesday that the U.S. state’s securities commissioner, Gerald Rome, has signed four new orders against Global Pay Net, Cred LLC (doing business as Credits), CrowdShare Mining and CyberSmart Coin Invest. The companies all allegedly placed fraudulent statements on their websites with unverified data, false promises, claims of excessively high profits and dividends, insufficient disclosures and misrepresentation of facts, said the agency. With these four new orders, the total count of orders signed against ICOs in Colorado has now reached 18. There are at least two more orders pending to be signed, taking the total cases

Bitcoin Mining Firm Giga Watt Declares Bankruptcy Owing Millions

Coin Desk
U.S.-based bitcoin mining firm Giga Watt has declared bankruptcy with millions still owed to creditors. The firm filed for Chapter 11 bankruptcy at a court in the Eastern District of Washington on Monday, revealing that it still owes its biggest 20 unsecured creditors nearly $7 million in court documents seen by CoinDesk. Creditors include the utilities provider in its Douglas County base, having a claim of over $310,000, and electricity provider Neppel Electric, which is owed almost half a million dollars. Giga Watt has estimated assets worth less than $50,000, whereas estimated liabilities are in the range of $10–50 million, according to the court documents. “The corporation is insolvent and unable to pay its debts when due,” read the minutes of a special meeting of the shareholders of G

The Crypto Insurance Market May Total $6 Billion. That’s Nowhere Near Enough

Coin Desk
As Wall Street raises the stakes around cryptocurrency, large institutional players are circling this new asset class and bringing with them their own set of requirements. For example, there’s a need for qualified custodians to hold the assets these big-money investors will trade, as in the traditional, regulated financial realm. But a less-discussed yet critical condition for making institutions feel at home is providing adequate insurance against theft for all those custodied assets. The problem is that there’s not enough of this insurance to go around. While insurance is an opaque market, estimates of the total amount of coverage the industry is willing to provide to crypto custodians and exchanges top out at $6 billion – a drop in the bucket, considering that the top three exchanges
$5K Bounce? Bitcoin Price May Have Hit Bottom For Now

$5K Bounce? Bitcoin Price May Have Hit Bottom For Now

BITCOIN, Coin Desk
Bitcoin (BTC) could be in for a stronger recovery rally in the next few days, having found a temporary bottom near $4,000. The leading cryptocurrency, which hit a 14-month low of $4,048 on Bitstamp yesterday, is now trading at $4,580, representing a 2 percent gain on a 24-hour basis. The $500 recovery seen yesterday indicates that the market is finally paying heed to the record oversold levels reported by the 14-day relative strength index (RSI). Currently, the indicator is still hovering in oversold territory below 30.00. As a result, BTC is unlikely to revisit yesterday’s low of $4,048 for now. Further, the correction looks set to gather pace, as the RSI on the 3-day chart has dropped into the oversold region for the first time since January 2015. 3-day chart Oversold readings on the RS
VanEck Subsidiary Launches Index Tracking OTC Bitcoin Performance

VanEck Subsidiary Launches Index Tracking OTC Bitcoin Performance

BITCOIN, Coin Desk
MV Index Solutions (MIVS), a subsidiary of New York-based investment management firm VanEck, has launched a new bitcoin index. Announced Tuesday, the MVIS Bitcoin US OTC Spot Index (MVBTCO) is said to be the first index that covers the performance of bitcoin on selected over-the-counter (OTC) platforms in the U.S. The index represents the average spot price of bitcoin and tracks performance based on three providers in OTC liquidity: Circle Trade, Cumberland and Genesis Trading, the release states. The index tracks just bitcoin and does not consider forks, according to the MVIS website. “We are excited to be the first provider to launch a bitcoin index based on the pricing feed of OTC trading desks. This enables clients who trade over the counter to use this index as a reliable benchmark fo
Bitfury Adds Former SEC Commissioner to Advisory Board

Bitfury Adds Former SEC Commissioner to Advisory Board

Coin Desk
The Bitfury Group, a crypto mining and software company, has recruited two veterans of the traditional financial world to guide its strategy and growth. Revealed exclusively to CoinDesk, Antoine Dresch, founder of tech investment fund Korelya Capital (which led an $80 million funding round for Bitfury) and former executive at several major investment banks, will join Bitfury’s board of directors. At the same time, Annette Nazareth, a former member of the U.S. Securities and Exchange Commission, has joined Bitfury’s advisory board. “Antoine’s years of experience in investment banking and mergers and acquisitions will be valuable assets as Bitfury continues to grow,” said Bitfury’s CEO Valery Vavilov in a press release. “Annette will serve in a different capacity; as a trusted advisor, she w
Bitcoin Cash Is Now Two Blockchains – That Might Not Change Anytime Soon

Bitcoin Cash Is Now Two Blockchains – That Might Not Change Anytime Soon

BITCOIN CASH, Coin Desk
It’s been six days since the bitcoin cash split and neither side looks ready to call it quits. What’s more, cryptocurrency exchanges that froze holdings of bitcoin cash in lead-up to Thursday’s contentious hard fork activation are beginning to warm up to idea that bitcoin cash may forever remain two cryptocurrencies. On Tuesday, Coinbase, one of the largest U.S.-based cryptocurrency exchanges, affirmed it was “now prepared to resume limited trading in [bitcoin cash],” designating the Bitcoin “Adjustable Blocksize Cap” or Bitcoin ABC chain with the bitcoin cash (BCH) ticker. In addition, Coinbase added that its intention was to eventually “support withdrawal services for the [Bitcoin Cash “Satoshi Vision” or Bitcoin SV] chain” but that development work for this would likely take “at least a