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Crypto-Backed Lending Service Sees Massive Demand

Crypto-backed lending service CEX.IO LOAN, launched in October 2020, has been experiencing major demand, receiving over $100M worth of loan requests to date. Most of the requests came from institutional investors, despite the service’s popularity among retail clientele, as well.

According to CEX.IO LOAN, such an increase in demand can be attributed to the institutionalization of the crypto-industry. Institutional investors in possession of cryptocurrencies regard it as collateral for borrowing funds and use it as such.

They prefer the company’s service due to the convenience it offers to users. On the CEX.IO LOAN platform, customers can borrow cash against their cryptoassets in a quick and simple manner, without having to deal with credit checks or any unnecessary paperwork.

CEX.IO LOAN serves various cryptocurrency market participants, from retail investors and traders to startups and large enterprises. Users can borrow any amount between $500 and $100,000 at competitive interest rates starting at 8.75% per year and the loan duration ranging from seven days to one year.

The service has already experienced high demand from VIP clients, with 41% of all CEX.IO LOAN customers borrowing cash against Bitcoin, 53% – against Ethereum, and 6% – against decentralized finance (DeFi) tokens. 

While retail investors borrow $1,400 on average, VIP clients request larger-sized loans, with the typical amount being $1 million or higher. Institutional clients also need the funds for more extended periods (usually, 6-12 months), which indicates a long-term asset management strategy.

“As institutional investors find the digital asset industry increasingly attractive, it’s a pleasure to serve them with our enterprise-grade instant crypto-backed loan platform. Security, convenience, and compliance are key priorities for corporate clients, which are features that we have been providing to all our clients in the rapidly growing CEX.IO ecosystem,” Anton Chashchin, Commercial Director for the CEX.IO LOAN service, stated.

About CEX.IO LOAN

CEX.IO LOAN is a part of the CEX.IO Group. Founded in 2013, CEX.IO operates one of the largest international exchanges of the cryptocurrency market, which has been featured among Crypto Compare’s ten best exchange services. With offices in the UK, USA, Ukraine, Cyprus, and Gibraltar, CEX.IO serves over 3 million customers worldwide. From entry-level users to professional traders, as well as institutions and businesses, CEX.IO suits the needs of various crypto market participants with a reliable, high-security digital asset service.

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Blockchain News Cryptocurrency News

Prime Trust Announces Record Crypto Market Growth in 2020

Prime Trust, the leading provider of all-in-one, financial infrastructure for fintech innovators today reported 2020 numbers, with strong growth across crypto, crowdfunding and BaaS markets. It further detailed the fintech roadmap priorities for the year ahead. Additionally, Prime Trust celebrated its year-end with continued team expansion – hiring more than 100 new members in 2020; despite the challenges of the pandemic.

2020 Highlights

Prime Trust executives attribute the company’s growth to the acceleration of alt-banking and the next-generation of alternative trading systems. Additional highlights from the year include:

  • Crypto – $12 billion in settlements and more than 3.4 million counterparty transactions
  • Crowdfunding – more than $650 million invested, with 460,000 transactions in 648 offerings
  • Financial Infrastructure – more than 140 API customers, $22 billion funds processed and 600,000 AML checks

“What a year! Despite a lot of uncertainty caused by COVID-19, I am in awe of our team and how they persevered as business accelerated beyond our wildest expectations,” said Scott Purcell, CEO of Prime Trust. “We moved quickly to develop technology and add exceptional team members with expertise across regulation, banking, business and tech to service our API customers.”

2021 Outlook

Prime Trust will continue full steam ahead for 2021, with a host of priorities and initiatives across the board from enhancing bank crypto services to securing impactful certifications. The company will continue to thrive in the new year as the all-in-one, financial infrastructure for quick, easy, and reliable deployment to help fintech innovators launch in a customizable way.

“It’s a really exciting time to be in fintech, and a fantastic time to provide financial infrastructure to a huge variety of innovators,” Purcell said. “Our customers are doing incredible things with our technology and 2021 is going to be an amazing year of innovation and disruption – I can’t wait.”

Prime Trust is the leading provider of all-in-one, financial infrastructure for fintech innovators. Their proprietary Universal Asset Platform, Prime Core, is a modular platform that allows fintech startups and established financial institutions to scale and enter new markets, quickly and simply. The firm powers mobile financial apps, crypto exchanges, securities exchanges, OTC desks, portals, platforms, brokers, investment advisors, exchanges, real-estate syndicators, and others with smart API solutions to create world-class financial services at scale. Services provided by Prime Trust include institutional and retail account types including custodial, IRA, trust, and escrow, coupled with funds processing, AML and KYC compliance, asset custody, counterparty settlement systems, transaction technology and tax reporting. 

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Blockchain News Cryptocurrency News

Global Crypto Conference Available By Livestream January 27 – 29

Co-hosted by Delio, the Global Crypto Assets & Finance Conference 2021, where virtual asset companies from around the world gather to forecast the global virtual asset market in 2021, will be held online for 3 days from the 27th to the 29th.

The ‘Global Crypto Assets & Finance Conference 2021’ is a conference specializing in virtual asset finance in which global virtual asset finance companies such as Korea, the United States, China, Singapore, and the EU participate in the global virtual asset market. It is a place to share key information on the virtual asset financial ecosystem, as well as to discuss the future financial development direction of the virtual asset market to investors.

This conference is expected to hold a general discussion on virtual asset finance such as derivatives trading, Defi, custody, OTC, wallet, mining, traditional finance, investment, law and institution, and is divided into three sessions with in-depth.

The conference begins with congratulatory remarks from the Chairman Kwan-seok Yoon and Rep. Byung-Wook Kim, who initiated and passed the special money law, from the National Policy Committee.

At the session 1 presentation on the first day, Glenn Woo, CEO of APAC at Ledger, Ben Zhou, CEO of Bybit, Daehoon Han, Analyst at SK Securities, Kevin Huang, founder of Cabin VC, and Justin Kang, head of Delio Strategic Marketing, diagnose the trends and implications of the virtual asset industry under the theme of ‘The Current Status and Prospect of the Crypto Asset Financial Market in 2021’.

In the session 2, the topic is ‘Successful Crypto Asset Investment Plan’, starting with Annabelle Huang Vice President of Amber Group, Vice President of Chain-up Jade Chen, Hexlant CEO Jinwoo Ro, Huobi University Dr. Yu Jianing, former head of Huawei’s chief blockchain scientist Ken Huang, Hyun-woo Lee CEO of Xangle, and Seung-hwan Lee of Coinness, will present on the second day.

In the last session, the topic is “Institutions and Regulations Related to Virtual Real Estate”, Deputy Director Lee Hae-Boong of the Financial Supervisory Service will give a presentation on “Recent Regulations Related to Virtual assets.

Next, Samuel Yim from Kim&Chang talks ‘License requirements for virtual asset service providers in 2021’ and Eric Chan, attorney of ShookLin&Bok law firm talks ‘Regulation of cryptocurrency currency in Singapore’, In-Wook Kwon of IW Tax Office said ‘Tax of Investors and Virtual Asset Businesses’, Louise Shen, CEO of Wenergy,’Characteristics and Differences in the Markets of China, Korea and Indonesia’, Liyan Consulting Founder Gu Yan Xi announces ‘merging of the bank and the securities industry’.

This conference is hosted by Delio and the Korea Crypto Finance Association (KCFA) and will be conducted online in consideration of the Corona 19 prevention. Anyone who is interested in the cryptocurrency market, such as virtual asset investors, the general public, institutions, companies, financial investors can watch it through the official Delio YouTube channel without prior registration.

Justin Kang, Head of Strategic Marketing at Delio, said, “In 2021, the domestic virtual asset market is entering into full-scale institutionalization through the implementation of the Special Money Act. “This conference will share the current status of the virtual asset market and key financial issues with domestic and oversea virtual asset finance companies. It will be a meaningful place to present the message.”

In 2020, the Korea Virtual Real Estate Finance Association (KCFA) held a parliamentary seminar for the ‘enactment of a law specializing in virtual assets’ in cooperation with Democratic Party Rep. Kim Byeong-wook in to discuss the necessity of enacting a law specializing in virtual assets for the development of the blockchain industry. He has represented the voice of the industry.

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Blockchain News Cryptocurrency News

OKEx Releases Two New Decentralized Apps

OKEx, a world-leading cryptocurrency spot and derivatives exchange, is delighted to announce that the team behind the open-source blockchain OKExChain has launched two decentralized applications, OKEx Swap and OKEx Farm, on the protocol. Both these new features, along with the opening of the OKT/USDT Farm Pool commenced today at 10:00 am UTC. 

OKT withdrawals also opened at the same time, giving OKT holders the ability to stake OKT along with USDT in Swap to earn OKT-USDT LP tokens. These can then be used to stake in the OKT-USDT Farm Pool for additional earnings, such as mining new OKT.

The OKEx Swap and Farm initiatives have been enabled by the initial stability testing of the OKExChain mainnet that generated tens of thousands of OKT block rewards (according to OKExChain’s block reward rules). These tokens have not yet been allocated, meaning that OKT holders can unlock significant rewards by mining OKT on-chain.

The size of the reward will be voted on by the OKT/USDT whitelist pool on Jan. 26 at 10:00 am UTC. If the vote is approved, a snapshot will be taken according to the blocks that voted in favor, and the accumulated OKT will be distributed according to the proportion of OKT-USDT LP tokens that they had staked in the OKExChain Farm pool when the proposal was approved.

The amount of OKT that users can mine is equal to the number of tokens staked divided by the total number of tokens in the Farm Pool, multiplied by the cumulative amount of OKT. After the cumulative OKT allocation is complete, users can continue to mine through the OKT-USDT Farm Pool. Staking starts as soon as the Farm function is launched. 

“The phased launch of OKExChain is moving along at a very encouraging pace. Already after completion of the initial stage, we have seen its native token, OKT, commanding an all-time high of $86.54 in its first days of trading on the OKEx platform. We’re thrilled that the team behind OKExChain has been able to provide OKT holders with even more benefits through the Swap and Farm initiatives and to see OKExChain expanding its utility,” commented OKEx CEO Jay Hao.

In addition to staking and mining rewards via OKEx Swap and Farm, OKT provides users with further immediate utility and benefits, including voting rights and transaction-fee payments for decentralized exchanges and other DeFi applications built on the network. OKT is currently available to trade on the OKEx platform with zero fees on all trading pairs for the first 30 days.

For further information on OKEx Swap and OKEx Farm DApps, please visit the OKEx Support Center here.

OKEx is a world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto investors, miners and institutional traders come to manage crypto assets, enhance investment opportunities and hedge risks. OKEx provides spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

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It’s Not Just Institutional Thirst, Retail Demand For Crypto Reaches ‘Unprecedented’ Levels

There’s just not enough Bitcoin to meet demand.

That’s not just some hopium-based fantasy by the leader of a fringe crypto cult.

No, it’s simple fact from tallying just a couple places where Bitcoin can be bought.

We’ve reported that institutional money is moving into cryptocurrency assets, and that institutional demand is higher than it has ever been.

Retail demand is also currently at “unprecedented levels.”

Unprecedented levels

Israeli trading and investing platform Etoro warned customers in Europe on Friday of possible limitations on crypto purchasing over the weekend. In an email, the exchange said: “The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support buy orders over the weekend. In light of this, it may be necessary for us to place limitations on crypto buy orders.”

eToro’s statement acknowledging unprecedented demand is just one of many that point to the fact that there isn’t enough Bitcoin available at today’s prices to meet demand.

Pantera Capital’s recent monthly letter to investors states that:

In last month’s investor letter we discussed that after 30 months of operation, Square’s Cash App is estimated to be buying around 40% of all newly-issued bitcoin.

PayPal just launched their new service that enables customers to buy, sell, and hold cryptocurrency directly from their PayPal accounts. It’s already having a huge impact.

The bitcoin community is proud to have grown to 100 million users over twelve years. PayPal has 300 million active users. As we’ve argued — and will argue more fully in our December investor letter — this rally is much more sustainable than 2017. One of the main differences is the ease of investing in bitcoin now — via PayPal, Cash App, Robinhood, etc.

Previously the friction to buy bitcoin was pretty onerous: take a selfie with your passport, wait days to a week to get activated, daily limits.

Three hundred million people just got instant access to Bitcoin, Ethereum, and other cryptocurrencies.

BOOM! The results are already apparent.

PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below.

When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins.

PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.

Only 900 New Bitcoins Created Each Day

Bitcoin supply is growing daily. Literally, it’s growing by 6.25 newly created Bitcoins with each new block mined. By design, one Bitcoin block is mined every 10 minutes, resulting in an average of 144 new blocks every day. 144 x 6.25 equals 900 new Bitcoins created each day.

Genuine Bitcoin Investor Demand

As we reported above, just Paypal and Cash App are responsible for buying more than 900 Bitcoin per day.

Let’s look at another rather obscure place to buy Bitcoin: LocalBitcoins.com. This is a site outside of the massive mainstream crypto exchanges. It is sort of a peer-to-peer classified ad site that matches buyers with sellers on an individual level.

Compared to the big exchanges, such as Coinbase, this site is tiny. For instance, Binance alone had a Bitcoin trading volume in the past 24 hours of $2.77 billion at press time.

Contrast that to the average daily trading of Bitcoin at localbitcoins.com which is a mere $6 million. The difference in size is staggering. The point being, trading volume at localbitcoins.com is a tiny, extremely tiny, amount of Bitcoin being bought each day.

Now, be aware that most of the trading volume on Binance and other big exchanges is just that: trading, not investing. A trader can buy and sell multiple times per day with each of those trades adding into the cumulative total trading volume.

On localbitcoins.com it is definitely not “traders” doing the trading, it is mom and pop type of people buying Bitcoin to hold as an investment.

So let’s look at the numbers. $6 million worth of Bitcoin are being bought right now every day on localbitcoins.com.

How many Bitcoin is that?

$6,000,000/$37,000 each equals 162 Bitcoin.

Remember, there’s only 900 being created. And this tiniest little peer-to-peer exchange is responsible for its users buying up almost 1/5 of all newly created Bitcoin each and every day. This is purely Bitcoin volume, and does not include other cryptos such as XRP and Litecoin.

Paypal and Cash App are already buying more Bitcoin than are being created each day. This tiny little site is facilitating the buying of nearly 20% of all new Bitcoin being create. What about the customers of Binance? What about demand from the customers of Coinbase, Gemini, Kraken, Bittrex, Bitstamp, Huobi, Bitfinex, and hundreds of other exchanges are are many times lager than localbitcoins? Where will all the Bitcoin come from for those buyers to be able to purchase?

Only Existing Holders Can Supply Bitcoin To Match Soaring Demand

One thing is certain, there is no way to increase the supply of new Bitcoin being created each day and available on the market. With demand absolutely overwhelming new supply, that only leaves existing holders willing to sell in order to satiate buyer demand.

Which means only one thing: prices will continue to be bid higher.

There’s good reason for the crypto fear and greed index to be pegged on greed.

How high is high? Here’s our Bitcoin forecast for this year and beyond.