Bitcoin price is trading in a range above the $3,345 support level against the US Dollar.There is a major bearish trend line formed with resistance at $3,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely to face a strong resistance near the $3,375 and $3,400 levels.Bitcoin price is currently consolidating losses above $3,340 against the US Dollar. BTC could correct a few points, but upsides are likely to remain capped near $3,400.Bitcoin Price AnalysisThere was a short-term support formed near the $3,345 level in bitcoin price against the US Dollar. The BTC/USD pair corrected a few points and traded above the $3,360 and $3,370 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $3,444 high to $3,337 low. The price even spiked above the $3,375 resistance, but it failed to hold gains. Sellers defended gains above the $3,380 and $3,400 levels. As a result there was a fresh dip and the price retested the $3,345 support.It is currently correcting higher towards the $3,375 and $3,380 resistances. There is also a major bearish trend line formed with resistance at $3,375 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent decline from the $3,444 high to $3,337 low is also near $3,391. Finally, the 100 hourly simple moving average is positioned near the $3,390 level to act as a solid resistance. Therefore, it seems like there are many hurdles on the upside near $3,375, $3,390 and $3,400. On the downside, the key support is at $3,345, below which the price could break the $3,337 swing low.Looking at the chart, bitcoin price is trading in a bearish zone below $3,400. If buyers gain traction above $3,375, $3,390 and $3,400, there could be a decent upward move towards $3,500 in the near term.Technical indicatorsHourly MACD – The MACD is slowly moving in the bullish zone, with lack of positive signs.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently positioned above the 50 level.Major Support Level – $3,345Major Resistance Level – $3,400
Archives for February 7, 2019
Ripple price corrected higher, but it failed to move above $0.2900 and $0.2920 against the US dollar.Yesterday’s highlighted key bearish trend line is intact with resistance near $0.2890 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair must break the $0.2900 and $0.2920 resistance levels to start a short term upward move.Ripple price is trading in a bearish zone with a negative angle against the US Dollar and Bitcoin. XRP/USD could continue to move down and it may even break the $0.2850 support level.Ripple Price AnalysisAfter trading as low as $0.2850, ripple started a minor upside correction against the US Dollar. The XRP/USD pair traded above the $0.2860 and $0.2880 resistance levels. It also moved above the 23.6% Fib retracement level of the recent decline from the $0.2987 high to $0.2849 low. However, there was a strong rejection near the $0.2910 and $0.2920 resistance levels. The price even failed to test the $0.2930 pivot level and later traded in a tight range. More importantly, it slowly traded lower and settled below $0.2900 plus the 100 hourly simple moving average.On the upside, there are many hurdles near the $0.2900 and $0.2920 levels. Besides, yesterday’s highlighted key bearish trend line is intact with resistance near $0.2890 on the hourly chart of the XRP/USD pair. The 50% Fib retracement level of the recent decline from the $0.2987 high to $0.2849 low is also near $0.2918. Therefore, the price is likely to struggle near the $0.2900 and $0.2920 resistance levels. On the downside, an initial support is at $0.2850, below which there is a risk of a drop to $0.2800.Looking at the chart, ripple price is clearly placed in a bearish zone below $0.2920. As long as the price is below the $0.2930 pivot, sellers remain in action. They could soon push the price below $0.2850 and $0.2820 in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly gaining pace in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is back below the 50 and 45 levels, with bearish signs.Major Support Level – $0.2850Major Resistance Level – $0.2920
ETH price failed to move past the $105 resistance and later declined against the US Dollar.Yesterday’s highlighted crucial bearish trend line is intact with resistance near $104 on the hourly chart of ETH/USD (data feed via Kraken).The pair must break the $104 and $105 resistance levels to start a decent upside correction.Ethereum price recovery remained capped against the US Dollar and bitcoin. ETH/USD may continue to consolidate above the $100 support before the next key break.Ethereum Price AnalysisYesterday, there was a short term upside correction from the $100 swing low in ETH price against the US Dollar. The ETH/USD pair traded above the $102 and $104 resistance levels. However, the price failed near a major resistance area at $105 and the 100 hourly simple moving average. Moreover, there was a failure observed near the 61.8% Fib retracement level of the last drop from the $107 high to $100 low. The price topped near the $105 level and later started a downside move.It broke the $104 level and the 23.6% Fib retracement level of the recent wave from the $100 swing low to $105 swing high. On the downside, there are a few supports near the $103 level. If the price continues to move down, it could test the $102 level. It represents the 61.8% Fib retracement level of the recent wave from the $100 swing low to $105 swing high. The main support is at $100, below which there is a risk of a sharp drop towards the $95 support. On the upside, there are many hurdles near the $104 and $105 resistance levels. Additionally, yesterday’s highlighted crucial bearish trend line is intact with resistance near $104 on the hourly chart of ETH/USD.Looking at the chart, ETH price remains below the key $104 and $105 resistance levels. If buyers continue to struggle near the $105 level, there could be a downside reaction below the $100 support.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly moving back in the bearish zone.Hourly RSI – The RSI for ETH/USD is back below the 50 level, with a bearish angle.Major Support Level – $100Major Resistance Level – $105
Investors Cameron and Tyler Winklevoss have been ordered to pay back $45,000 in legal fees incurred by entrepreneur Charlie Shrem as part of an ongoing lawsuit that alleges he failed to broker a series of promised cryptocurrency purchases on their behalf.
In the order, filed in the U.S. District Court of the Southern District of New York on Thursday, Judge Jed S. Rakoff ruled Shrem should be reimbursed for a prior court ruling that gave the plaintiffs the ability to seize up to $30 million worth of his assets.
The initial order, granted at the onset of the case, was rolled back on November 8, at which point Shrem filed a motion to recoup attorney’s fees and related costs to defending the motion.
Lawyers for Winklevoss Capital had attempted to argue Shrem should not recoup the funds for his costs, as he was only ultimately only charged a “de minimis amount” of less than $5. The court ultimately rejected the idea this invalidated Shrem’s claim, though, the judge found the requested damages should be reduced by 40 percent on reviewing the charges.
Brian Klein, partner at Baker Marquart LLP, said of the ruling:
“We are glad that the judge ruled for Charlie and ordered WCF to reimburse him for legal fees he incurred in overturning WCF’s approximately $30 million attachment order. This is another big step towards his full vindication.”
Overall, the court filing is the latest in a recent lawsuit that has pitted three high-profile cryptocurrency industry personalities and former business partners against each other in the headlines.
Winklevoss Capital was previously an investor in Shrem’s first startup BitInstant, an early cryptocurrency exchange that was one of the most public before its eventual shut down in 2013. Shrem was later found to have violated anti-money laundering rules during his tenure as CEO, for which he would ultimately serve a one-year prison sentence.
A trial is now set to hear further arguments in the ongoing lawsuit this June.
Winklevoss Brothers – Charl… by on Scribd
Charlie Shrem image via CoinDesk archives
Jeff Bezos blasted the National Enquirer, and its owner, David Pecker, in a shocking Medium post Thursday for attempting to blackmail the Amazon CEO and founder with a threat to publish his “d*ck pick [sic]” and nine other salacious photos obtained by the Enquirer.
Here’s the full text of the extortion email Jeff Bezos says his office received from Dylan Howard, the Editor in Chief of the National Enquirer:
From: Howard, Dylan [[email protected]] (Chief Content Officer, AMI)
Sent: Tuesday, February 5, 2019 3:33 PM
To: Martin Singer (litigation counsel for Mr. de Becker)
Subject:. Jeff Bezos & Ms. Lauren Sanchez Photos
CONFIDENTIAL & NOT FOR DISTRIBIUTION
I am leaving the office for the night. I will be available on my cell — 917 XXX-XXXX.
However, in the interests of expediating this situation, and with The Washington Post poised to publish unsubstantiated rumors of The National Enquirer’s initial report, I wanted to describe to you the photos obtained during our newsgathering.
In addition to the “below the belt selfie — otherwise colloquially known as a ‘d*ck pick’” — The Enquirer obtained a further nine images. These include:
· Mr. Bezos face selfie at what appears to be a business meeting.
· Ms. Sanchez response — a photograph of her smoking a cigar in what appears to be a simulated oral sex scene.
· A shirtless Mr. Bezos holding his phone in his left hand — while wearing his wedding ring. He’s wearing either tight black cargo pants or shorts — and his semi-erect manhood is penetrating the zipper of said garment.
· A full-length body selfie of Mr. Bezos wearing just a pair of tight black boxer-briefs or trunks, with his phone in his left hand — while wearing his wedding ring.
· A selfie of Mr. Bezos fully clothed.
· A full-length scantily-clad body shot with short trunks.
· A naked selfie in a bathroom — while wearing his wedding ring. Mr. Bezos is wearing nothing but a white towel — and the top of his pubic region can be seen.
· Ms. Sanchez wearing a plunging red neckline dress revealing her cleavage and a glimpse of her nether region.
· Ms. Sanchez wearing a two-piece red bikini with gold detail dress revealing her cleavage.
It would give no editor pleasure to send this email. I hope common sense can prevail — and quickly.
A few weeks ago the National Enquirer revealed to the world that Jeff Bezos was having an extramarital affair when it published intimate texts between Bezos and his girlfriend. That prompted Bezos to hire a private investigator, security specialist Gavin de Becker, to determine how the Enquirer obtained the texts.
Although Bezos didn’t say so in his Medium post, it would appear that Becker found some incriminating information about AMI’s activities.
AMI, the company that owns the National Enquirer is currently feeling the heat from Justice Department investigations into potential corruption related to AMI CEO David Pecker’s close ties with Donald Trump and the Saudi government.
The Offer AMI Thought Jeff Couldn’t Refuse
Here’s the quid pro quo the Enquirer offered the Amazon founder not to publish his “d*ck pick” and other salacious photos and texts belonging to Bezos and his girlfriend:
“In the AMI letters I’m making public, you will see the precise details of their extortionate proposal: They will publish the personal photos unless Gavin de Becker and I make the specific false public statement to the press that we ‘have no knowledge or basis for suggesting that AMI’s coverage was politically motivated or influenced by political forces.’”
Jeff Bezos Doesn’t Negotiate With Terrorists
“Well, that got my attention. But not in the way they likely hoped. Any personal embarrassment AMI could cause me takes a back seat because there’s a much more important matter involved here. If in my position I can’t stand up to this kind of extortion, how many people can? (On that point, numerous people have contacted our investigation team about their similar experiences with AMI, and how they needed to capitulate because, for example, their livelihoods were at stake.)”
“Of course I don’t want personal photos published, but I also won’t participate in their well-known practice of blackmail, political favors, political attacks, and corruption. I prefer to stand up, roll this log over, and see what crawls out.”
Sounds like soon some people at The National Enquirer are going to “learn to code.”
Read Jeff Bezos’ full Medium post here.
Jeff Bezos Image from Jim WATSON / AFP
Telegram’s crypto platform is now 20% further along than it was at the end of last year. According to an investor update cited in The Block, it is about 90% completed. The most important part, the Telegram Virtual Machine, is reportedly complete. “Only minor changes will be necessary,” the investor update reads. It’ll process computations in the same way the Ethereum Virtual Machine does.
Telegram completed its first pre-sale round about a year ago, followed by a second round in March. Between the two rounds, $1.7 billion was raised. This places high expectations on the platform that is intended to compete with Ethereum, EOS, Tron, and the myriad of other smart contract platforms.
Testnet Launch Delayed to March
Although the developers feel they’ve made 20% more progress since their last update, the launch of Telegram Open Network’s testnet has been pushed back to March. Investors probably already suspected that the testnet would be delayed, since it had originally been planned for January.
The testnet will play an important role in allowing third-party developers to get a feel for the platform. The TON is a highly anticipated cryptocurrency project due to the massive use of the core Telegram platform itself. In essence, a pre-existing userbase can be introduced to the crypto economy through GRAM. If not GRAM, other tokens will launch using its tech.
GRAM To List on Asian Exchanges Right Away
Iran Warns Citizens Against Using Telegram’s Cryptocurrency, Gram https://t.co/fDd4BfOcd3
— CCN.com (@CryptoCoinsNews) January 2, 2019
On that note, sources speaking to The Block confirmed that Telegram is actively arranging for GRAM to be usable on several crypto exchanges out of the gate. If true, this will mean that almost out of the gate price discovery can begin.
2.2 billion GRAM tokens were sold during the pre-sale for a total of $1.7 billion. This makes the opening price almost $1 per token. The question is: will the platform, which has 200 million users from the start, actually compete with Ethereum? The third-party apps that build on it are what will determine as much, and so far we’ve not heard much about notable parties with such plans.
GRAM has a total supply of 5 billion tokens. Some of them are going to be held by the company to fund development, but plenty more will eventually find their way to the market.
GRAM will likely spend its early life in the top 10 cryptocurrencies, given the amount of money already invested. In fact, a market capitalization of $1.7 billion would immediately put it in competition with TRON for the #8 spot in the crypto rankings. The market enthusiasm seen for new coins could propel it even further up the list. Indeed, it could be #4 in no time – the current owner of that spot, EOS, is only $2.125 billion.
Pavel Durov Image from TechCrunch/Flickr
This week, major browser operator Opera has integrated a feature to purchase crypto into its Android app less than three months since announcing its plans to further explore blockchain technology.
With a partnership with Safello, a European crypto exchange, users are now able to purchase cryptocurrencies directly from the Opera browser.
Frank Schuil, CEO of Safello, said:
“With Safello brokerage on the Opera mobile browser for Android, both new and experienced users can now easily transact cryptocurrencies in the most secure and fastest way possible. The functionality to purchase crypto is right at their fingertips.”
The announcement of Opera comes in a period in which other large-scale technology conglomerates like Samsung are rumored to be in the process of integrating native crypto support.
Opera and Samsung Initiatives are Crucial For Mainstream Bitcoin Adoption
Following many security breaches, hacking attacks, and cases like the recent QuadrigaCX fiasco wherein the CEO reportedly died holding the private keys to $150 million in digital assets, the confidence in the cryptocurrency industry from investors has declined.
While leading Bitcoin industry companies in the likes of Coinbase, Gemini, Kraken, and Binance have strengthened the infrastructure supporting cryptocurrencies, the perception of the industry by mainstream users and investors remains generally negative.
For the long-term growth of the cryptocurrency sector, it is crucial to have large-scale institutions and companies to build within the digital asset ecosystem and increase the awareness of the asset class.
The recent integration of a cryptocurrency purchasing feature by Opera presents a small step toward increasing the adoption of digital assets in major markets.
Samsung Galaxy S10 Bitcoin Wallet Leaked by Insider: Is it Official? https://t.co/Z3uGvq516W
— CCN.com (@CryptoCoinsNews) January 23, 2019
As SamMobile and other local publications reported extensively, Samsung, South Korea’s largest company, is rumored to be integrating a cryptocurrency wallet, potentially led by Samsung Pay.
If Opera continues to add cryptocurrency-related features onto its platform and Samsung Pay oversees the implementation of a cryptocurrency wallet, the asset class would gain mainstream exposure to two large markets in the browser and mobile phone markets.
In an official statement, Opera Product Lead for Crypto Charles Hamel said:
“We think that the next important phase for crypto will come from usage and that for it to reach wider adoption, it has to be easy to buy and easy to use. We believe that the browser will be the entry point for these use cases.”
For Mainstream Bitcoin Users and Investors, Recognition is Necessary
Whether it is for targeting institutional investors or individual users, the importance of recognized organizations demonstrating a high level of involvement in an asset class cannot be understated.
Earlier this week, on the Unconfirmed podcast, Dan Morehead, the CEO of Pantera Capital, the first billion-dollar cryptocurrency fund, said the emergence of ICE’s Bakkt, Fidelity, and ErisX could drive institutional investors into the market.
“Now we have firms like ICE’s Bakkt, Fidelity, or ErisX doing varying institutional custody and over the months, I think that will help bring institutions in. The one thing that is true though is institutions are like the rest of us. They’re pretty pro-cyclical and the big wave of institutional money will probably not start until the prices themselves start going up,” Morehead said.
Similarly, the 10 million active user base of Samsung Pay and the 182 million active user base of Opera could naturally lead many users that were previously reluctant toward utilizing cryptocurrencies to give them a try.
Although unlikely in the short-term, some analysts believe the Opera integration may also lead other major browsers to integrate cryptocurrencies in the long-term if, as Twitter CEO Jack Dorsey believes, Bitcoin or any other cryptocurrency becomes the native currency of the internet.
Brave, another cryptocurrency-focused browser, is said to have millions of active users and content creators who are incentivized using digital assets.
Featured Image from Shutterstock
The cryptocurrency markets are currently experiencing a relatively involatile day, with most major cryptos trading up or down marginally. Because Bitcoin has held support at $3,400, most cryptocurrencies, like Ethereum (ETH), are resting at, or slightly above, their support levels, which is leading many traders to express increased caution in entering any longs positions.Despite this, one prominent analyst sees Ethereum potentially gearing up for a price surge that could send it skyrocketing over 90% from its current prices.Ethereum Stable Above $100, May Drop to $90 Before Skyrocketing At the time of writing, Ethereum is trading up marginally at its current price of $104.9. Earlier this week, ETH fell to lows of $103 before bouncing to its current price levels, and has thus far held steady above $100, which is an important psychological price level.Yesterday, Hsaka, a popular cryptocurrency analyst on Twitter, explained that he believes ETH needed to break above its previous consolidation support around $105 in order for it to move higher, and he further noted today that this price has been confirmed as a level of resistance, as ETH has been rejected each time it touched this level throughout the day.$ETH Update pic.twitter.com/JRzmjIapP8— Hsaka (@HsakaTrades) February 7, 2019Despite this, DonAlt, a popular cryptocurrency analyst on Twitter, shared his thoughts on ETH, noting that he sees it potentially surging as much as 90% in the relatively near-future, but also adding that it may drop to $90 before surging.“Bought quite a bit of $ETH just above $100 targeting $200… I could see us break down to $90 which would be my dream entry… That said I’d much rather have a position than taking the risk of missing the move entirely,” DonAlt explained, adding that a break below $90 would lead to significantly further losses.Bought quite a bit of $ETH just above $100 targeting $200.
I could see us break down to $90 which would be my dream entry.
That said I’d much rather have a position than taking the risk of missing the move entirely.If it breaks below $90 I’d guess we’re going for the shitter. pic.twitter.com/0o3gccdJAk— DonAlt (@CryptoDonAlt) February 7, 2019If DonAlt’s analysis turns out to be accurate, a surge to $200 would signal a 90% rise from ETH’s current price levels, and a 122% gain from $90, if it fell to this price prior to surging.Crypto Markets Trade FlatAlthough Ethereum may be on the verge of incurring some major price gains, the overall cryptocurrency markets are trading flat as Bitcoin sits just a hair above its support level at $3,400.Ethereum may be ready to skyrocket, but the overall crypto markets are trading flat as Bitcoin struggles to defend its support level at $3,400.At the time of writing, XRP is trading up marginally at its current price of $0.292. Previously, XRP has found support around $0.28, which will likely continue to be a level of support, assuming that Bitcoin does not plunge significantly below its current price levels.Bitcoin SV, which surged yesterday, has been able to maintain most of its recent gains, and is currently trading sideways at its current price of just under $63. Over the past couple of days, Bitcoin SV surged from lows of $57 to highs of $67.6, before settling back down to its current price levels.Although Ethereum may have significant potential for large gains in the near future, it is highly unlikely that it will be able to surge unless Bitcoin begins to climb from its current prices, as BTC instability will likely dissuade investors from entering long positions in any cryptocurrencies.Featured image from Shutterstock.
The recent Dow Jones rally is a “dead cat bounce” because the stock market is going to tank and a recession will eventually cast a dark shadow over the US economy. That’s the bleak prediction of investment perma-bear David Tice, who previously managed the aptly-named Prudent Bear Fund.
A dead cat bounce is a brief recovery from an extended bear market that’s followed by a prolonged downturn. Basically, that’s where Tice thinks the US stock market is right now.
‘We Are Now in a Bear Market’
Looking ahead, Tice claims a 10 to 30 percent market plunge looms on the horizon, so Wall Street shouldn’t get overconfident because of the recent bull runs.
“This is a rally inside a bear market,” Tice told CNBC on February 7. “We believe we are now in a bear market. The 200-day moving average was crossed back in October…We could have something between a 10 percent and a 30 percent decline [this year].”
Tice founded the Prudent Bear Fund in 1995 and sold it in 2008 to Federated Investors. He says despite the stock market’s recent rallies, he believes there’s a 50-50 chance of a recession this year.
Tice cited the disastrous monetary policies of the central banks, escalating corporate debt, and the economic slowdowns in Europe and Asia as the key drivers of the forthcoming recession.
“I tend to think with this massive amount of debt that we’ve added ― and this massive about of monetary stimulus that we’ve added ― it’s going to end very badly.”
David Tice: ‘Gold Represents True Money’
Tice says if the United States and China reach a trade deal, the Dow Jones may spike as much as 20 percent, but it will eventually come crashing down.
Accordingly, he suggests that individual investors cut back on their equity exposure, saying the stock market is too risky right now. However, Tice is bullish on gold, saying everyone should buy some of it.
“I’m a believer that gold represents true money. We are in a fiat money world, and it’s dangerous not to have some gold in your portfolio.”
Tice is a perma-bear who almost always expects the worst. As an example, in May 2017, Tice issued another woeful projection, saying the stock market would crash as much as 50 percent. He made the same gloomy prediction in 2012 and 2014. Those market crashes never materialized.
Interestingly, Tice praised bitcoin in 2017, when it was enjoying an unprecedented bull run. At the time, he said bitcoin “makes a lot of sense from a transactional basis.” It’s unclear what Tice’s views are of bitcoin now, in light of the current protracted Crypto Winter.
OppenheimerFunds CIO: No Recession For 5 Years
Meanwhile, other market analysts say concerns over an impending recession or stock market crash are overblown. Krishna Memani, the chief investment officer at OppenheimerFunds, says the US economy is definitely slowing down a little, but it will still increase more than 2%.
Moreover, Memani says there’s no recession ahead for at least another five years, as CCN reported in January 2019.
“There’s no recession imminent. I think five more years is what we are talking about. Valuations are meaningfully better.”
“And sentiment improves with the [US-China] trade talks. If we can find that resolution and the federal government opens up again, we will be home free.”
Memani says the biggest risk in the global stock market is trade. However, he’s confident that the ongoing trade disputes between the United States and China will be resolved. Why? Because both sides have too much to lose if they don’t fix the problem.
Despite the global economic slowdown, Memani is still recommending that investors buy.
“We are telling people to buy right now because we expect these resolutions,” he said.
Featured Image from Shutterstock
“Investing in stocks can be a daunting, complex and decidedly exclusionary activity,” says Bill Barhydt, Abra’s CEO. To that end, his company’s mobile cryptocurrency wallet app has announced a new feature which will allow investors to purchase traditional stocks using bitcoin. The new feature is built into the existing Abra app that enables users to buy and sell cryptocurrencies.
Crypto investors in the 155 countries where Abra has its presence will be able to invest in traditional stocks, such as Apple or Amazon, as well as in exchange traded funds (ETFs), using both cryptocurrencies and fiat directly from their mobile app.
According to Barhydt, everyone should have access to capital markets, regardless of where they live in the world or the amount of capital they have at their disposal. This is where Bitcoin comes in.
The world’s most popular cryptocurrency has shown its capacity to serve as a democratic form of money by creating an open financial system, and he believes his company’s app could change how smaller investors access publicly traded companies and other securities.
“We are building Bitcoin-backed investing products because, for the first time, we can truly democratize access to investment opportunities at global scale. It shouldn’t matter where you live or how much you earn to be able to make investments and participate in capital markets. We’re excited to allow anyone to start investing in global equity products and take control over their savings.”
Cryptocurrency exchanges have been offering features that allow traders to do more than buy and sell crypto of late. Last year, social trading platform eToro launched a mobile trading app that will enable investors to invest in fiat currencies, stocks and cryptocurrencies.
“Abra is different by offering this on a global scale,” Barhydt pointed out, in correspondence with Bitcoin Magazine. He said that the Abra app makes it easy for investors to make fractional investments in stocks, commodities, ETFs and indexes.
“These are not tokenized securities,” he added. “We are not creating an ERC 20 chain. All investments in stocks, ETFs, indexes, etc., are collateralized by bitcoin.”
Crypto Collateralized Contracts
The new feature will leverage Abra’s Crypto Collateralized Contracts (C3s), a model that allows an investor to convert their bitcoin into different investment options, without having to move money from one wallet to another. The C3s act rather like a stablecoin whose value can be pegged with a reliable price feed to the value of bitcoin.
For every security purchased on Abra, the investor enters into an investment contract, a multi-sig smart contract based on P2SH scripts on the Bitcoin blockchain, which automatically determines whether or not an investor has made money based on the price of the asset. For instance, if an investor wants to purchase $200 worth of Amazon shares, he will place $200 worth of bitcoin into a contract and the movement of the stock’s price will determine the addition or subtraction of bitcoin from the contract.
According to Barhydt, Abra takes all the risk here, which it hedges in the open market, the instant a user creates the investment.
Barhydt also touts the broad crypto and fiat offerings on Abra as a unique selling point, as well as its non-custodial nature — so users hold the fate of their funds in their hands.
“Abra does not collect, store, or have access to its users’ funds. So individual users hold their private keys in the Abra app on their smartphone,” Barhydt said.
For investors who register for the early access program, Abra is offering zero trading fees, with a $5 minimum investment.