Crypto Round Up: Bitcoin Price Tightens as World Leaders Discuss Crypto at Davos
It’s been another eventful week in the crypto sector and recent events show that regardless of cryptocurrency prices, the sector continues to grow and draw more interest from central banks, the governments of numerous countries and institutional investors.
Earlier in the week former CFTC chairman J. Christopher Giancarlo revealed that he is involved with a company that plans to issue a digital version of the US dollar and on Thursday Tether unveiled the launch of a new gold-backed cryptocurrency called Tether Gold.
These are just a few of the major events showing that the mass adoption of cryptocurrency continues to take steady steps forward. Let’s see what else occurred this week!
Tether Unveils Gold-Backed Cryptocurrency
Tether has announced that it will launch a gold-backed cryptocurrency called Tether Gold (XAUT). The new cryptocurrency will provide investors with exposure to physical gold and the token will function on the Ethereum and Tron blockchain.
The company also hinted that it plans to diversify into other traditional assets and XAUT token will stand for one troy fine ounce of physical gold on the London Good Delivery gold bar. XAUT tokens will be stored in a vault in Switzerland.
Tether CTO Paolo Ardoino said that the token was launched to satisfy the growing demand for exposure to gold and Ardoino explained that “Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways.”
Ripple Trims Quarterly XRP Dumps by $53 Million
Ripple, Inc. recently released its 2019 quarter 4 report which shows the company reduced its XRP sales by $53 million. In the last three months of 2019, the company sold $13.08 million XRP which is an 80% reduction from the $66.2 million sold during the previous quarter.
The report also shows that during Q4 Ripple released 3 billion XRP from escrow but eventually returned 2.7 billion XRP to the wallet reserved for escrow. Interestingly, the reduction in sales and reversal of the escrow release occurred right as XRP dropped to a 2-year low at $0.18.
In the report, Ripple also addressed growing concern that frequent XRP sales and an escrow account holding 50 billion coins was negatively impacting price stability and trading volume.
Amun Lists Inverse ETP To Help Traders Short Bitcoin
Fintech firm Amun has listed inverse bitcoin exchange-traded product (ETP) on Switzerland’s primary stock exchange SIX. Amun is known for listing various cryptocurrency-related ETPs on SIX. However, for the first time, with the inverse ETP, traders will be able to short Bitcoin.
The inverse ETP earns a positive return when the price of Bitcoin falls. Amun has listed its inverse ETP as “21Shares Short Bitcoin ETP (SBTC).” It has a total of 11 crypto ETPs listed on stock exchanges.
While the rest are passive investment products, this one requires active investment. Amun is looking to list its ETPs on at least two more European exchanges by the end of 2020.
Binance Quietly Altered its BNB Coin Burn to Align with Volume Not Profits
Binance recently carried out the tenth coin burn of its native Binance coin (BNB) but this time the reason for the destruction of a portion of the coin supply was different. Up until Q2 of 2019, the number of coins burned was matched with 20% of the profits made in each quarter.
Surprisingly, Binance recently made a quiet change to its whitepaper which found that coin burns are no longer connected with profits. The new change now links coin burns to trading volume instead of quarterly profits.
A number of prominent analysts at top crypto journals expressed concern at the move as they believe the new change will make it harder to determine Binance’s growth and the health of the exchange.