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Nasdaq, Bloomberg and Reuters Add CoinMarketCap Crypto Indices

Coinspeaker
Nasdaq, Bloomberg and Reuters Add CoinMarketCap Crypto Indices

As it has become known data provider CoinMarketCap has developed two cryptocurrency benchmark indices and now is integrating it to the leading financial data feeds as well as to its own platform. It was announced by the company on March 20.

CoinMarketCap Crypto Benchmark Indices  

According to the information provided the launch of the new indices has taken place on CoinMarketCap’s native platform and financial data feeds from Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv) and Germany’s Börse Stuttgart.  

In its announcement CoinMarketCap named its benchmark indices the most comprehensive crypto data offerings for the markets existing today. It is said that they will cover 200 major cryptocurrencies by market capitalization. One of the indices will include Bitcoin and the second one won’t.  

The first index developed by CoinMarketCap is named CMC Crypto 200 Index (CMC200). It is the one that includes Bitcoin and, according to the company, covers over 90 percent of the world’s crypto market.

The second index is known under the name CMC Crypto 200 ex BTC Index (CMC200EX). As it is obvious from its name, Bitcoin is not included in this index as it is developed to track the market’s performance without taking the influence of BTC into consideration.  

In this context it’s worth mentioning that at the moment the share of Bitcoin which is still the largest cryptocurrency in the world accounts to over 50% of the total market capitalization.

Speaking about their new indices and their role Brandon Chez, CEO of CoinMarketCap, noted:

“These indices will promote greater accessibility to cryptocurrency data in an easier-to-digest format.”  

Cooperation with Solactive

To carry out this initiative, CoinMarketCap has entered in a partnership with Solactive that is a Germany-based provider of financial indices. The tasks of Solactive will include calculating and administering these two indices. Moreover, it will rebalance them each quarter. As for CoinMarketCap, it will be responsible for providing price data.  

As it has been revealed by Fabian Colin who is Solactive’s head of sales, thanks to the cooperation with CoinMarketCap and data provided by the company, they will have an opportunity to work on the development of their own custom indices for clients

“We are looking forward to developing more crypto indices in the future, which will optimistically result in investable indices and might lead to further products,” added he.

Let us also remind that CoinMarketCap has already made headlines this week. As Coinspeaker has reported earlier, it has added Flipside crypto asset letter grades to its platform which will help users to see how digital assets keep evolving.

Nasdaq, Bloomberg and Reuters Add CoinMarketCap Crypto Indices

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FIS Buys Worldpay for $35 Billion Piling Pressure on Rivals

Coinspeaker
FIS Buys Worldpay for $35 Billion Piling Pressure on Rivals

Acquiring Worldpay will help U.S. fintech Fidelity National Information Services Inc. (FIS) expand its reach in digital payments. Worldpay processes around 40 billion transactions a year. For Worldpay, the deal will help expand into new markets and compete with global payment rivals.

The companies are trying to create a “one-stop shop,” said Darrin Peller, analyst at Wolfe Research. They believe joining forces will put them in stronger positions to capitalize on the growing e-commerce payments industry and provide improved financial technology solutions to banks and merchants. Global payments are set to reach close $3 trillion within the next five years, projects McKinsey.

The cash and stock deal values UK-based Worldpay at $43 billion, including the assumption of debt which FIS said it plans to refinance. Under the terms of the deal, Worldpay shareholders get 0.9287 shares and $11.00 in cash for each share of Worldpay.

FIS shareholders will own about 53% of the combined company while Worldpay shareholders will have a roughly 47% stake. Once the deal is closed, the combined company will offer a bevy of services for businesses and financial institutions including enterprise banking, payments, capital markets, and eCommerce services.

Worldpay processes more than 40 billion transactions each year and supports more than 300 payment types in more than 120 currencies.

Acquisitions are Putting the Pressure on Rivals

Analysts and industry experts said they expected the trend to continue, with the latest acquisition putting further pressure on rivals to avoid being left behind or displaced by new entrants.

FIS CEO Gary Norcross said:

“Scale matters in our rapidly changing industry. As a combined organization, we will bring the most modern solutions targeted at the highest growth markets.”

From FIS they explained that the deal will accelerate revenue with organic revenue growth projected to be between 6% and 9% through 2021. The company also expects to realize $700 million of total EBITDA synergies and pro forma 2018 revenue and adjusted EBITDA of around $12. 3 billion and $4.9 billion respectively.

The combined company will maintain the FIS name and will be headquartered in Jacksonville, Florida. FIS gets seven seats on the 12 member board while Worldpay gets five. Norcross will continue to be chairman, president, and CEO while Worldpay CEO Charles Drucker will become the executive vice chairman of the board.

Todd Latham from an international payments platform CurrencyCloud said:

“Until recently, most merchants entrusted banks with processing payments and moving money on their behalf. But it was never really banks’ core business, so little investment was made into making such activities more frictionless and consumer-friendly. Traditionally, it’s been a poor cousin in the bank relative to investment banking.”

Starting in 2006, many banks thus set out to spin out those units into independent commercial enterprises.

Stuart Bedford, a partner at law firm Linklaters said:

“As predicted, 2019 is turning out to be the year for consolidation in the fintech industry and, in particular, the payments sector.”

Changing Hands

Worldpay, which has provided payment processing services for more than 40 years, operated as a business unit of Fifth Third Bancorp until June 2009 when it separated as a stand-alone company. It was spun out of RBS to private-equity firms Bain Capital and Advent International in 2010.

The company listed on the London Stock Exchange in 2015, with an initial public offering valuing it at 4.8 billion pounds, the biggest flotation in London that year.

Centerview Partners and Goldman Sachs were financial advisers to FIS, the companies said, adding that Willkie Farr & Gallagher served as FIS’ legal adviser in the transaction.

In 2009 the European Commission said that RBS would have to sell WorldPay and other businesses, as a condition of approving state aid to the bank.

The next year, WorldPay was sold to private equity firms Advent International and Bain Capital for £2bn, with RBS retaining a 20% stake.

In 2013, RBS sold off its remaining stake. WorldPay went on to sell shares on the London Stock Exchange in 2015.

In January 2018, US payments processing technology firm Vantiv acquired WorldPay for $10.4bn. Vantiv renamed the combined firms WorldPay.

FIS Buys Worldpay for $35 Billion Piling Pressure on Rivals

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Bitcoin Price Analysis: BTC/USD is Heading Towards $4,254 Level

CoinSpeaker
Bitcoin Price Analysis: BTC/USD is Heading Towards $4,254 Level

Key Highlights:

  • The $4,050 price level is already broken up and exposes $4,254 resistance level;
  • the bulls are in control of the Bitcoin market;
  • the coin may find its resistance at $4,254 price level.

BTC/USD Medium-term Trend: Bullish

Resistance levels: $4,254, $4,692, $4,960
Support levels: $4,050, $3,903, $3,774BTC/USD is on the bullish trend on the Medium-term outlook. The Bears lost momentum and could not defend the resistance level of $4,050. The Bulls then strengthened their momentum and broke up the significant resistance level of $4,050 as predicted last week.

Bitcoin price has carried out retest, the resistance level of $4,254 is currently exposed to the crypto. The BTC price opened today’s market with bullish Japanese candle which connotes that the bullish momentum is increasing.

Should the Bulls maintain their momentum, it will lead to heavy buy-off that will send the BTC price to the resistance level of $4,254 but lose in the Bull’s momentum may lead to consolidation around $4,050 price level. The 21 periods EMA has crossed over the 50 periods EMA to the upside and the two are well separated which connotes increase in bullish trend.

Bitcoin price is trading above the two EMAs which indicate that the Bulls are in control of the BTC market. The Relative Strength period 14 is above 60 levels and its signal lines pointing to the south indicate sell signal which may be a pullback.

BTC/USD Short-term Trend: Bullish

The BTC/USD is bullish on the short-term outlook. The BTC/USD broke out of the consolidation with the bullish momentum. The strong bullish candles broke up the $4,050 price level moving towards $4,254 but the bulls lose the momentum due to the Bears’ pressure. Bitcoin carried out price retracement to the broken level before it resumes its bullish trend.

The BTC price is currently trading on the 21 periods and 50 period EMAs in which the two EMAs are gradually coming together to each other which indicate that consolidation is ongoing currently which may be for a short time. The Relative Strength Index period 14 is above 40 levels with signal lines pointing up which indicates buy signal.

Bitcoin Price Analysis: BTC/USD is Heading Towards $4,254 Level

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Did Christchurch Killer Invested in Crypto Scam Bitconnect?

CoinSpeaker
Did Christchurch Killer Invested in Crypto Scam Bitconnect?

The perpetrator of the mass killings at New Zealand mosque appears to have funded his life with investments he made in defunct cryptocurrency BitConnect.

Just for reminder, we wrote of how in January last year, the team of BitConnect officially announced the halt of their lending and exchange platform. The self-regulated all-in-one Bitcoin and crypto community platform, BitConnect was, at the first place, created to offer multiple investment opportunities with cryptocurrency education.

BitConnect has informed the members of their community that they are “closing the lending operation immediately with the release of all outstanding loans”.

The scheme was once grand before its eventual conclusion and went up to a market of over two and a half billion dollars ($2.6B). The scheme has long been dismantled, however, while it lasted many people managed to make money and receive hefty returns.

The platform has been accused of being a pyramid scheme because the marketing structure was built on several levels and that they promised unreasonably high payouts.

However, even though there is (still) no official confirmation of the document’s legitimacy, it may be likewise that Brenton Tarrant participated in BitConnect. Still, there is no official evidence of gaining profit through this participation.

New Zealand Prime Minister Jacinda Ardern described the killer as “an extremist, right-wing, violent terrorist.” She issued “the strongest possible condemnation of the ideology of the people who did this.”

Is There a Crypto Connection After All?

We believe there is. Especially if we look at the revealing of the killer who said that video game Fortnite taught him how to be a killer.

The gunman disclosed that he has dabbled in cryptocurrency, writing:

“I worked for a short time before making some money investing in BitConnect, then used the money from the investment to travel.”

He reportedly used the profits to travel overseas across Europe, Southeast Asia, and Asia, which may be where he became radicalized, according to the manager of the gym where the gunman worked.

Tarrant did not give further details about his investment, and it remains unknown how much he was able to obtain from it, or whether the funds had a direct impact on the crimes he subsequently committed.

The threat of terrorist activity involving cryptocurrency remains a preoccupation of authorities worldwide.

While literature often brings up worries over its use in crime, other studies have questioned the extent to which organized terrorists, in particular, are able to leverage cryptocurrency within their operations.

However, it seems that cash still remains the preferred form of financing.

Christchurch Announced $5M of Tokens Stolen From Cryptopia

New Zealand is known for being safe, and the shooting has rocked the entire region. While Australia and the UK both have bans on semi-automatic weapons, however, New Zealand does not. It also rolls out the welcome mat for immigrants and refugees.

Christchurch however, has been famous for the crypto business before. In January this year, Christchurch-based cryptocurrency exchange Cryptopia suffered a security breach. Customers didn’t have any idea what was happening to their funds, while police remained tight-lipped about the investigation.

Customers couldn’t access their accounts even a month later. The investigation is still ongoing. The combined worth of tokens stolen from Cryptopia’s digital wallets is unclear. On January 13, it’s estimated more than $5 million was transferred to an unknown digital wallet. The following day, the website was down.

On January 15, Cryptopia admitted a “security breach” and said “appropriate government agencies” had been notified. But New York-based analyst Max Galka, of Elementus, said in his blog that funds continued being drained until January 17. He estimated the total value of stolen tokens at around US$16m (NZ$24m).

Did Christchurch Killer Invested in Crypto Scam Bitconnect?

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Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

CoinSpeaker
Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term

He was found guilty on just one charge though: producing illegal records. The rest of the charges, including the loss of millions of dollars in Bitcoin, were dropped. Further, he was handed a suspended sentence.

Just for a reminder, prosecutors have demanded the Japanese court to charge Mt. Gox CEO Mark Kapelès a minimum 10-year jail term under charges of Bitcoin embezzlement and fraud.

The conviction brings to a close the defining incident of the first bitcoin boom when Mt Gox, then the world’s biggest cryptocurrency exchange, filed for bankruptcy in 2014 after losing about 850,000 bitcoins from its accounts.

Those bitcoins are worth $3.3bn at today’s price of $3,865. A suspended sentence in U.S. basically means that as long as the accused keeps their nose clean, they don’t have to go to jail.

The court verdict said:

“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement.”

In handing down the suspending jail term, it blamed Karpeles for “massive harm to the trust of his users,” saying “there is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts.”

Karpeles’ defense attorneys used the fact that he hid the true state of the exchange from investors and users to his advantage.

They used the fact that he hid the true state of the exchange from investors and users to his advantage. They said:

“Mt. Gox did not collapse because of the defendant’s wrongdoing. On the contrary, the defendant was trying his hardest every day to prevent its collapse.”

Karpeles eventually stood trial in 2015, but not on account of the theft. Instead, he was charged with faking trading information at Mt.Gox over “several years” and embezzling $3 million in customer funds deposited with the company.

He was arrested in August 2015 and spent a year in Japanese detention after being re-arrested several times, as is possible under the legal system in Japan.

When he was finally released on bail, he had lost a huge amount of weight and at his first high-profile hearing offered up a clean-cut image.

Since then, Karpeles has been active on social media but has largely avoided commenting on his case in detail as he awaited the court’s verdict.

Luxury Living and High-End Spending Using Embezzled Money?

Karpeles came under scrutiny after prosecutors claimed he used the embezzled money to fund an ostentatious lifestyle, including living in a $11,000-a-month rented apartment and regularly spending on overseas trips. In addition to personal expenses, he reportedly launched a high-end 3D printing business; a cost deemed “unnecessary” for Mt.Gox’s purposes.

However, Karpeles maintains innocence to this date and denied all charges levied.

The Karpeles case has attracted increased public interest since the shock arrest in Japan four months ago of another prominent foreign executive: Carlos Ghosn, the former chairman of Nissan Motor Co. The Brazilian-born French national was charged with hiding millions of dollars in deferred income from his fellow executives and board members.

In an interview with The Associated Press last year, Karpeles warned about the risks of virtual money, likening its precariousness to a game of musical chairs, with about 10,000 people around each chair.

He said:

“As long as everyone is dancing, it’s fine, but if everyone wants to sit at the same time there won’t be enough chairs.”

As Financial Times explain, Basel panel urges banks to be wary of crypto assets. After thousands of investors lost their money in Mt Gox, however, the price subsided back to around $250 before its spectacular ascent to almost $20,000 in 2017.

Spectacular hacks have continued, however. Last year, another exchange, Coincheck, lost $500m to hackers.

The Mt Gox collapse has prompted a long legal saga as investors seek to recover their funds. After its collapse, 202,185 missing Bitcoins were discovered in an online wallet, and the surge in their price is potentially sufficient for investors to recover all of their money.

Mt. Gox’s Mark Karpeles Found Guilty Producing Illegal Records, Gets Suspended Term