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Principles That Determine Cryptocurrency Exchange Rates And Exchanges

For the past decade, cryptocurrency has been rapidly rising into being an incredibly valuable asset, so much so that several cryptocurrency investors save up their cryptocurrencies for retirement or as a form of inheritance to their heirs. Flowing from that, one thing that plays a role in the market cap and value of cryptocurrencies is its exchange rates. Some of such cryptocurrencies that have become extremely valuable due to their exchange rates are bitcoin and ethereum. This value is glaring in the bitcoin price and the ethereum price which are $5,067.69 and $163.73 respectively.

In line with the above, if you have ever found yourself pondering on the possibility of trading cryptocurrencies and the factors that determine the exchange rates of the numerous cryptocurrencies we currently have in our planet, then you might want to read on. Right here we would be giving an insight into factors that determine cryptocurrency exchange rates.

Determinants Of Cryptocurrency Exchange Rates.

For those who are wondering how cryptocurrencies which only exist digitally can have so much importance to the point of pulling in millions of dollars globally through diverse exchanges, the reason is quite simple and it is hidden in plain sight. The principles of economics are the primary determinants of these exchange rates. These principles are scarcity, demand, supply and utility. This goes to say that if a commodity or service is rare and very useful, its demand would hit the roof and it would be supplied at a high price. Take a precious stone such as diamond as an example. It is undisputedly rare, the mining and cutting process is tasking and it is the strongest precious stone to be discovered so far. Due to its scarcity and usefulness in that it can be transformed into jewelries, its demand is high among those who can afford it and it goes at a high price. This is exactly the way cryptocurrencies and their exchange rates operate.

Connecting the above diamond example to bitcoin, the oldest and highest lucrative cryptocurrency, there currently exist a little over sixteen million bitcoins and the miners have made it quite clear that the highest amount of bitcoins that would exist per time is 21 million. This perfectly illustrates the economic principle of scarcity and utility. Such scarcity increases its demand and right now bitcoin price is over five thousand dollars with an overall market cap of $89.4 billion. Bitcoin is so useful to the point that there are loads of merchants around the world that accept Bitcoin as payment for their goods or services.

These same principles of economics are the reason behind ethereum market cap being $17.3 billion, ripple market cap being $13.6 billion, bitcoin dash price being $281.35 and its market cap being an impressive $5 billion and some other cryptocurrencies having impressive exchange rates and thriving. Be that as it may, you should also note that some types of cryptocurrency exchanges slightly alter some of these cryptocurrency prices and exchange rates. It all depends on which cryptocurrency exchange platform you engage.

Types Of Cryptocurrency Exchanges.

To start with, cryptocurrency exchanges are web-based platforms that permit the exchange of fiat money for cryptocurrencies or another form of cryptocurrencies. There are four cryptocurrency exchanges and these  cryptocurrency exchange, brokers, direct trading and cryptocurrency funds.

For the first, it is very similar to a stock exchange format in that cryptocurrency investors trade based on the rate in the market at a time. The exchange usually acts as an intermediary and the exchange also charges a certain amount for every transaction. Having said that, Kraken and GDAX are reliable traditional exchanges.

For the second one, it is an exchange that operates on a website and buyers trade in cryptocurrencies using a price dictated by a broker. It is very much similar to an airport currency exchange. Additionally, a broker does not provide for transactions between both the seller and the buyer but rather this is done between the broker of the cryptocurrency and the broker or the seller and the broker.

Thirdly direct trading platforms offers trading opportunities for buyers and sellers. On this platform, sellers fix their exchange rates when it comes to cryptocurrencies and buyers check the rates and the exchange takes place. Alternatively, buyers can state the exchange rate they want and the exchange platform would look for sellers offering the same rate.

Finally, cryptocurrency funds are basically a collection of cryptocurrency assets that have been expertly managed. Interested members of the public are then to acquire and handle cryptocurrencies via the fund. When that’s done, buyers can go on to invest and trade such cryptocurrencies without going through the hassle of storing it directly. A good cryptocurrency fund is GBTC.

On a final note, there are currently over 1,600 cryptocurrencies and the exchange rates for each of these cryptocurrencies are primarily determined by the principles of utility, scarcity, demand and supply as seen above. Individual exchange platforms also play a role in determining these exchange rates. That said, when choosing an exchange, you should do an in-depth research into the platform. Also make sure you are transacting with certified users and check prices because you won’t be trading at a designated price.

Source: Foundico.com: Blog
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Expose of White Paper Writers Shows Dismal Integrity in Initial Coin Offering (ICO) Promotions

“Money must be made,” says white paper writer Adefemi Yusuff Adegoke.

And though Adegoke won’t allow his name to go on a “crappy” project, he and other writers are willing to generate the compelling white paper used to attract investors nonetheless.

That these papers often include “poetic” language, “fabrications,” plagiarized tech and are “shilled” by teams whose only real interest is in the fundraise hasn’t necessarily dented activity in this “healthy cottage industry,” says Decrypt Media, which conducted a two week investigation of the crypto white paper writing sector.

In fact, sources from among about a dozen crypto white paper writers told the outlet that their business is currently experiencing an upswing thanks what some are hoping is the end of the “crypto winter.”

Business may also improve thanks to the emergence of the STO (security token), a theoretically more compliant digital investment medium.

According to Decrypt, White Paper writers can make about a $1000-50 000 per ICO/STO white paper.

Some of those writers confessed limited technical knowledge though they said they might work on a paper for up to 8 months.

Adegoke, a “prolific” crypto white paper writer based in Nigeria who also trains proteges for $30 dollars said that, most of the time, his clients are just as unconcerned about the tech they espouse as they are about their fiduciary duties:

“Most time[s], there are cases of funding budget padding…A project that can be executed with $180k funding budget can be padded up to $450k.”

Adegoke also said that ICO promoters also, “…won’t report the total amount realized during ICO.”

He added:

“Most of the fraud[s] are in the miscellaneous part of the budget…Those ones go directly into the pockets of the CEO and CTO.”

Volodymyr Malyshkin, CEO of Ukraine-based white paper generator Illuminates, told Decrypt that he has been regularly asked to include ‘fake numbers’ in his white papers.

Decrypt also confirmed with Malyshkin what has often been rumoured to be the case in crypto circles:

“Businesses, according to Malyshkin, often go into blockchain with little understanding of what they want to build—or even how to build it—merely hoping the word ‘blockchain’ will attract investors. That means the white-paper writers are often tasked with inventing  business models on behalf of their clients. Out of dozens, Malyshkin said, ‘only one client had any real idea about what to do from scratch.’”

According to Decrypt paraphrasing a “senior consultant from a leading blockchain advisory,” startups are not naively misusing hot tech buzz words to part investors from their savings, but are in fact doing so as a matter of “calculated cynicism.”

According to the consultant:

“Usually the way it works in my experience is this—a group of people want to raise money, they buy a consulting package that includes figuring out how they can raise, what they need to message, what they need to have in the whitepaper, etc. and that’s it…There’s rarely any interest on the part of the ‘crypto startup’ of what’s in the whitepaper. All they want is to raise and everything else serves that purpose.”

Copyright infringement in crypto/blockchain white papers is also common, said a US-based writer:

“I’ve had CTOs ask me to write about patented technology from another white paper as if it were my own idea, change the words a little, and then put it in a new white paper…This is patented technology in another part of the world.”

There is a glimmer of hope, however.

According to Malyshkin, increased regulation means that white papers and projects can, in some cases, no longer be as “crappy” as before:

“People want to see workable projects.”

Source: Ico Search Results
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TokenMarket’s Managing Director to Speak at the FinTech World Forum Alongside HSBC, IBM and Barclays

TokenMarket’s Ryan Hanley is to speak at the FinTech World Forum taking place in London next month.

Read more TokenMarket Updates here.


TokenMarket is set to speak at the FinTech World Forum taking place in London next month. The FinTech World Forum 2019 will be held at The Great Hall, Kensington Conference and Events Centre across two days from Tuesday, May 21st – Wednesday 22nd.

Ryan Hanley, Managing Director of the UK for TokenMarket, is set to deliver a keynote speech, as well as be placed on a panel. With his vast experience in the tokenisation space, Hanley will be discussing one of the financial industries hot topics: tokenised securities.

As more businesses and offerings are coming forward every day announcing their upcoming Security Token Offering (STO), Hanley will delve deep into why the technology and method for the new financing method have the ability to restructure the entire finance industry.

Whilst there are still misconceptions about the overall effectiveness that STO industry will have, Hanley will explain the various challenges and obstacles the fundraising method will overcome.

There are already 300 delegates signed up, with 25 speakers from large corporations in the financial and technology sectors set to attend. Notable speakers include Søren F. Martensen, Director of Financial Markets at IBM, Ian Rand, CEO of Business Banking for Barclays and Luis Valdich, Managing Director of Venture Investing at Citi Group.

Several TokenMarket team members will be there and Ryan Hanley will be on a panel discussing tokenisation as well as security token offerings and blockchain technology.

For more information and tickets, please visit https://fintechconferences.com/

Source: TokenMarket News
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As Some ICO Issuers Move to Give Money Back, Globex Offers Recision Software

While there have only been a few publicly announced recission requirements for initial coin offerings (ICOs) that have since been deemed unregistered securities, there are apparently quite a few more that have been giving money back under the radar.

The Securities and Exchange Commission (SEC) outlined a clear path for compliance for ICOs that breached existing law when it first posted enforcement actions against Paragon and Airfox.

Airfox and Paragon completed ICOs in 2017 despite a stern warning stating that ICOs can be classed as securities that the SEC included in its July 2017 DAO Report of Investigation. 

Reportedly, AirFox completed its ICO by selling 1.06 billion AirTokens to more than 2,500 investors raising $15 million.

Paragon, according to the SEC, raised about $12 million from 8,323 investors who purchased PRG tokens.

In the settlement with the SEC, both companies were compelled to register the tokens as securities under the Securities Exchange Act of 1934;  file periodic reports with the SEC for at least one year and pay $250 000 in penalties. They were also compelled to refund investors.

Globex is now making it easier to facilitate a recission and help “remedy non-compliant token offerings.”

Globex’s software addresses the rescission needs of a “self-reporting” token issuer pursuant to working with their counsel to file the appropriate regulatory filings and execute the following process:

  1. Old tokens are returned in consideration for new tokens via a new smart contract
  2. A white-label KYC/AML app is created for issuers to onboard & re-verify investors
  3. New tokens are custodied by registered Transfer Agents to ensure proper control and records of investor identities and to protect the onward sale of securities
  4. New tokens are moved from custody to a regulated ATS for compliant secondary trading

Mark Elenowitz, Globex President, presented the solution to regulators and legislators at the “K&L Gates Dialogue with the Regulations Forum” held Thursday, April 11th in Washington D.C. Elenowitz said it was a great feeling to share their product to regulators and policymakers

“We encourage issuers and law firms that are active in the digital security space to reach out to us to help come into compliance.”

Brian Collins, CEO of Globex, said they are proud to provide a “compliance re-do button.”

While it is not clear how many issuers will take advantage of the service most certainly post-DAO ICO issuers will be kicking the Globex tires.

Source: Ico Search Results
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Zoom Raising its IPO Price Could Have a Devastating Impact on its Success

With the news that Zoom, the video conference software developer, will be increasing its IPO share price, we examine the effects this could have on its success.

Read more Opinion pieces here.


Zoom, the video conference software developer, announced that it will be increasing its initial share price range from $28 to $32 per share to $33 to $35 this week. The IPO is now expected to rise to $730.4 million, giving the company a fully diluted valuation of $10 billion. The recent valuation now gives Zoom an initial market cap nine times more than that of its first unicorn valuation in 2017.

After recently declaring that it will be selling $100m of Class A shares to Salesforce Ventures, the decision to increase the price has left some analysts questioning the decision, as well as the overall success the Zoom IPO will have.

Recently described as a “rare breed of unicorn” Zoom, which will list on the NASDAQ as ZM, is set to sell 9,911,434 Class A common stock shares on Thursday 18th April. With over five billion monthly meeting minutes on its platform in 2019 alone, things are certainly looking up for Zoom as it proceeds to gear up for its IPO.

With Lyft watching their share price decrease by over 28%, perhaps this should serve as a warning to Zoom. From market experience, overpriced shares usually have a big consequence for the issuer. King Digital Entertainment, owners of Candy Crush Saga, watched their shares sink from $22.50 to $18.90 on the first day.

However, with Lyft’s recent IPO dropping dramatically after the IPO, some feel that Zoom could face a backlash amidst the price rise.

The substantial price hike for investors, however, could be a big problem. For the venture capital firms heavily invested pre-IPO, however, it means that they are only going to get richer. Investment firms such as Emergence Capital, which owns 12.2% of shares, and Sequoia Capital, which owns 11.1%, are set to receive a large payday once the shares go live.

Zoom’s price hike has also got some investors questioning whether or not the IPO will be an inevitable failure. Lyft alone highlights some of the implications and problems that overpricing can have since its $22 drop from just three weeks earlier.

Although Zoom has experienced incredible growth in the last two years alone, this price rise could have a negative impact. Perhaps it shows that Zoom is expecting to be oversubscribed, although there is currently no data to suggest otherwise.

In 2017, Zoom’s final round share price was a mere $3.74. It’s now multiple times that initial price. It means that for investors who are going to buy shares, they are now going to get less for their investment, without a valid explanation. For the smaller investors and funds it simply isn’t fair.

Whilst Zoom could be simply hedging their bets, knowing that people will still buy their shares, they also have no idea whether their IPO will be a success. They could be losing out on investors by changing their price just two days before they launch their IPO and, in the long run, greed could be what hurts the IPO the most. Although they have underwriters such as J.P. Morgan, Credit Suisse, Goldman Sachs and Morgan Stanley set the price, this does not guarantee success.

In 2009, Shanda Games, which employed Morgan Stanley and J.P. Morgan as lead underwriters, watched their share price drop by 14% on the first day because of the price change to $12.50, the maximum price it could be. It still stands as one of the worst IPO debuts to date.

With this price rise, however, it shows the ineffectiveness that IPOs have. Smaller investors are locked out for longer, early-stage funders are simply getting richer and unicorn businesses suffer the potential consequences of underwriters greed.

Something needs to change.

A market in which everyone has access to early-stage deals ultimately creates a fairer investment landscape. A solution that has an immutable database, as well as complete transparency about who is investing would also mean that the investment itself would be safer for all.

TokenMarket is disrupting traditional markets by offering all investors the same access, at the same price, for the same company via tokenised securities. We are listing what we believe to be the next generation of unicorn businesses for everyday investors, as well as venture capital firms.

In doing so, we are revolutionising the £77 billion annual growth and startup financing market. We are creating a level playing field for all investors, something that is simply not available with current financing models; changing the way that early stage investors are able to access the next generation of deals, creating a fairer playing field.

We are enabling investors who might not have the opportunity to invest at an earlier stage. This is something that is simply not possible through current early-stage capital methods allow. By utilising the Security Token Offering (STO) framework, we are beginning to combat some of the issues that methods, such as the IPO, face investors with.

On average, there is an 8.2-year wait for an early-stage to exit from the IPO. It locks capital up for close to a decade, giving no option of earlier liquidity and also highlights just why traditional methods are archaic. We are giving investors the opportunity to invest at a much earlier stage but not locking them up for a longer period. By giving investors earlier liquidity, it gives them the freedom to trade on a regulated exchange when they want, not when they are told they can.

With Zoom’s IPO going live tomorrow, we will have to wait and see whether the price change has an impact. For the software unicorn, it’s a nervous waiting game.

Source: TokenMarket News
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Blockchain Has Great Potential: A Quick Guide for ICO Investing

The enthusiasm that hit people when cryptocurrencies hit record levels back at the end of 2017 was probably one of the main reasons the market collapsed in 2018. ICOs or blockchain-based startups are not that illusive money-making machine that will turn everything into gold overnight. Consumers need to understand that it is a business and like any other sector, and in order to be successful, they need to have an in-depth understanding and a rule-based system. Expecting to make copious amounts of money over the course of a few weeks is unrealistic but over the course of a few years this is more than possible.

If an individual wants to learn how to invest in ICO, then they’re in the right spot as today we’ll give them some important tips on how they could do it properly and avoid being trapped in an ICO that won’t deliver the results wanted. Just like any other industry there are those companies in the ICO niche that will not deliver the results that you want.

Understand the industry

Although the blockchain technology might be applied to several industries, a consumer won’t be able to understand them all. If they are at the beginning, try to focus on projects that cover 2 or 3 industries, since it will enable them to study in-depth and learn the subtle details ignored by most of the other people out there. Having experience in niches that blockchain is adopted can give an investor knowledge that will be invaluable when picking an ICO to invest in.

Things are simple: a person buys tokens with the expectancy the value will rise over time. Why that could happen? What does the project have unique and how does it provide added value as compared to other companies that are currently existing? What people lie behind the ICO? Do they have experience in the field? Etc. Trying to do the most research possible to make an informed decision before investing is imperative.

A person should ask themselves these question and if they cannot manage to find relevant answers, then the ICO is not worth investing.

Search projects on ICO platforms

In order to ensure that the company conducting the ICO is compliant with certain industry standards and with regulation, the safest thing to do is to invest in projects that have been listed on ICO platforms or portals. TDS Capital Group, Launchpad, and others, are examples of places where an indvidual can find reliable ICOs worth investing in. By doing so, they can be sure that any project listed there had gone through a verification process and the odds of the company delivering on its promises, after it raises funds, are higher.

With so many ICOs failing to deliver on their promises, the consumer’s job as an ICO investor will be to create a rule-based system that will act as a filter and leave just those projects that truly have long-term potential. People are generally attracted by ICO thanks to the discounts they get and due to the belief they will pay the lowest price for a token. It will all depend on what will happen after the ICO ends, so make sure money is invested in serious and professional companies.

Source: Ico Search Results
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Collyer Bristow and TokenMarket Present: ’The Prelude to Mass Adoption of Tokenised Securities’.

TokenMarket and leading London-based law firm, Collyer Bristow, is hosting a joint event to discuss the upcoming mass adoption of tokenised securities. 

Read more Security Token Event pieces here.


In the latest of TokenMarket’s security token event series, the business has partnered with leading London law firm, Collyer Bristow. Set to take place at the Collyer Bristow offices in Holborn, London, on May 16th 2019, the event will focus on the prelude to the inevitable mass adoption tokenised securities.

The mass adoption and regulation of tokenised securities across global jurisdictions are either being legislated on or automatically approved under pre-existing securities laws, issuing and trading guidelines.

Throughout the EU, security tokens are regulated in Europe under MiFID II. The legislation is the most important in determining what constitutes a security. Though the European Securities and Markets Authority (ESMA) has been a bit unclear on its definition of ‘transferable securities’, this classification so far has been applied to security tokens.

The event will see TokenMarket’s Ryan Hanley, Managing Director of the UK, deliver a keynote outlining the world of Security Token Offerings (STO), dispelling some of the myths and highlighting the benefits that the tokenised fundraising landscape has. With vast experience in the world of tokenised and digital assets, Hanley will give an insightful and interesting talk on the effect that tokenised securities will have on traditional markets. With this, the event will also give first-time attendees the knowledge to better understand

As well as this, Hanley will also be moderating a fantastic panel focussed on one main question: how will both primary issuances and secondary market trading of tokenised securities gain mass adoption in a hegemonic centralised system which raises and trades funds? Panellists will include Nigel Brahams, Partner at Collyer Bristow, Oliver Bolton, CEO and Co-Founder of Almond and Dario Scarcella, CEO and Co-Founder of CapexMove.

Agenda

18:00 – Networking, Drinks and Registration  

18:30 – Welcome from Collyer Bristow

18:35 – ‘An Introduction to Security Token Offerings’  Ryan Hanley – Managing Director – TokenMarket Technologies  

18:50 – Panel: “How will both primary issuances and secondary market trading of tokenised securities gain mass adoption in a hegemonic centralised system which raises and trades funds?” 

19:30 – Networking and drinks

20:30 – Close

Final Thoughts

With the last two TokenMarket events being sold out, ticket demand is expected to be high. Whilst we do try to accommodate all those who wish to attend, we are unable to guarantee entry for all. We look forward to seeing you on May 16th 2019.

Sign up here to get your tickets and avoid disappointment.

Source: TokenMarket News
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TokenMarket Announces Partnership with Singapore Custodian Firm, DAVOS

London, England – April 16, 2019 TokenMarket, a global investment platform, has today announced that it will be partnering with a Singaporean digital asset custodian, DAVOS Custody. The partnership will see both business work together across Europe and Asia.

DAVOS is a Singapore headquartered company specialising in custody and safekeeping of digital assets for financial institutions, asset managers, funds, exchanges and private investors.  

At the core of its work, DAVOS has its enhanced AML/CFT policies, information security and technology risk management systems. DAVOS protects its clients with strict protocols for the segregated safekeeping of their individual assets.  

All client digital assets are completely segregated, in independent vaults, using the latest proprietary offline storage solutions, on mediums that are unable to connect to the internet. This provides the maximum level of security and flexibility for any token owner. Upon the announcement, DAVOS CEO, Ville Oehman, said: 

“We are working with TokenMarket to create a foundation for the financial market infrastructure of tokenised assets. Just like the custody of traditional securities, the custody of digital assets and especially security tokens is one of the prerequisites for institutional investors to enter the digital asset investment market. I believe this is a very timely start of a long and prosperous relationship for us both and am excited to get underway.”

TokenMarket’s partnership with DAVOS will allow investors to access a high calibre third-party custodian service. Traditionally, institutional investors and external asset managers in various jurisdictions are required to use a third-party custodian service. Now, these standards can be met for tokenised assets as well.

In doing so, TokenMarket will be taking a more holistic approach to the world of tokenised securities; giving investors a more regulated and protected platform to hold their digital assets on.  

“We have seen the hard work and success that DAVOS has had in Singapore. For TokenMarket, working with a third-party custodian service will allow us to offer our investors a much safer scenario for the storing of their assets. It also means that we are setting an industry standard yet again, bringing traditional financial methods to an emerging market. We are excited to begin our work together and I look forward to the results.” Mikko Ohtamaa, TokenMarket CTO.

For more information on the work that DAVOS carries out, please visit their website: https://www.davos.sg/

Source: TokenMarket News
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ICO consults on code of practice for protecting children online

The UK Information Commissioner’s Office (ICO) has launched a consultation on a Code of Practice to help protect children online.

The Code of Practice includes 16 standards that online services need to comply with to protect the privacy of children. This includes those responsible for developing, designing or providing online services likely to be accessed by children and which processes their data. 

The draft code was introduced by the 2018 Data Protection Act and covers online services such as apps, social media platforms, online games, connected toys, streaming services and educational websites. The consultation closes on 31 May. The final version of the code, which is not restricted to services specifically targeting children, is expected to come into effect by end-2019. 

Source: Ico Search Results
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