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New History in Cryptocurrency: Will Wrapped Bitcoin WBTC on ERC20 lead to Crypto 2.0?

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WBTC developed by Kyber Network (KNC), and Republic Protocol (REN) will be secured by BitGo. WBTC could well be the beginning of Cryptocurrency in 2.0

Friday’s biggest bang, the launch of Bitcoin’s new tokens – Wrapped Bitcoin (WBTC) running on the smart technology network ERC-20 could well be writing a new history for cryptocurrency evolution and adoption. The launch of the new token is slated for January 2019.

In the long term, the cusping of BTC with ETH could well restructure the crypto ecosystem.

WBTC developed by Kyber Network (KNC), and Republic Protocol (REN) will be secured by BitGo. The latter service provider will act as a transparent custodian for the BTC reserves which will present the value of WBTC.

The aftermath of the launch is KNC’s jump into the Top-100 market cap and a listing on the Upbit exchange, even as REN’s coins gained 13%.

 

What is WBTC?

WBTC is a new token project jointly developed by KNC and REN to offer cryptocurrency users a key advantage – Liquidity of Bitcoin running on the smart contract developer Ethereum.

According to the CEO of Kyber Network, Loi Luu,

“Applications on Ethereum such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, creating bitcoin trading pairs which have been impossible until now. At the same time, the usage of Bitcoin will be expanded by having more decentralized use cases, such as exchange, loans, and token payments.”

 

Aftermath

The venture is expected to have a major impact on the use and adoption of the blockchain-based currencies at the earliest.

The first stage to be impacted is the Ethereum transactions. Thus far in exchanges for tokens, the transaction would be limited to ETH and ERC-20. However, the induction of BTC which carries the asset value of Bitcoin will lead to indirect, or proxy trade.

The final stage of this transaction is that WBTC will become a stable coin as far as the ERC-20 exchange is concerned.  It could also see BTC like Tether for Ethereum tokens.

The immediate impact of WBTC is the surge in tokens of KNC and REN.

 

KNC skyrockets to 27%

KNC token rose by nearly 27% on the back of the WBTC announcement. The unit price rose from $0.442165 to $0.565303. However, the net gains were in the range of $0.49 after the surge subsided over the day.

 

REN moves up by 13%

Republic Protocol is ranked 236th by market cap, and matches buy to sell transactions in what is termed a ‘dark pool.’ Prices of the token rose by 13% to $0.031845 and the day’s trade for the pair – REN/ETH was on the following exchanges – HADAX, IDEX, and UEX.

BitGo, the custodian services provider has induced more funds lately from Goldman Sachs and venture firm Galaxy Digital. KNC is also liquidity while REN is the dark pool platform used typically by institutional traders.

 

A new beginning for cryptocurrency 2.0

Hence, the bottom line with the WBTC launch is that it includes the best of the industry participants on a common platform to break the current glass ceiling due to the separation of key financial processes – bitcoin has value, Ethereum has the smart technology and BitGo the custodian services. Thus, WBTC could well be the beginning of Cryptocurrency in 2.0

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4 Comments

4 Comments

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#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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#Bitcoin

Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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