Risk is a measure of probable loss and for banks, it can make all the difference. Basel is taking steps to minimize bank failures and this is how.
Given the recent financial report regarding the UK’s Metro Bank accounting failure, one of the most renowned financial regulators in the world has given a directive to allow for external auditing checks on the riskiness of banks’ loans.
According to Bill Coen, the Basel Committee on Banking Supervision secretary-general, auditors should be given the mandate of evaluating the bank’s calculations. This step will help eradicate cheating and errors in order to alleviate such a crisis that has been experienced in the 9-year old bank as well as other financial lending institutions.
In reference to Mr. Coen statement to the Financial Times, it’s a critical investment prospect to allow external auditors to assess a bank’s risk weightings.
Mr. Coen further adds that this decision will strengthen the security measures for financial assets making sure that bank lending is given the proper risk weighting it deserves.
The Risk Weighted Assets Loophole
Truth be told, risk-weighted assets (RWA) provide crucial financial information that is very vital in determining the equity capital that a bank should have. And, given the rising cases of banking errors, increased appeals for reforms have been witnessed throughout the world.
Capital levels are vital to banks’ robustness. According to the report, the Metro Bank incident came to light in January where the bank is said to have miscategorized a range of mortgage thereby alarming shareholders and triggering friction with the financial regulators.
Last week, Metro said to have fixed the allotting of the correct risk weighting and errors to those loans. This decision inflated its assets by 11% and prompted a £350m capital increase. Metro says it has experienced a Shares reduction by ½ over the past six weeks.
After the Metro financial incident, the Institute of Chartered Accountants in Wales and England encouraged the idea of auditing the RWAs calculations. However, bankers disregarded the proposal claiming that it was self-interested since the auditing RWAs would result in additional complex fee-based work.
Policymakers are already criticizing the efficiency of the audit profession, especially in the UK. The issue of the trustworthiness of the RWA calculations follows another incidence involving bank lending risk that was usurped by the IFRS9 international accounting rule.
This rule was introduced in 2018, and it directs banks to set apart credit loss provisions prior to the crises of losses instead of waiting until the loss occurs.
The Alarm on Divergent Views
Mr. Coen’s backs up the Basel Committee’s longtime idea for RWA audits due to the increased and unexplained divergences on how different banks view and judge the riskiness concerning different types of loans.
The Metro bank which is among the minor and fastest growing financial institutions in the UK made a mistake of positioning some loans into the standard risk-weighting level.
Usually, large and complex banks employ sophisticated risk models. And, according to financial experts, these models are effective and can apply in the RWA calculations.
Regulators expected to approve these models prior to use but currently, the performance of these models from year to year is not evaluated.
Some bank managements are not into the use of the RWA models which are designed to reduce risk weighting and capital necessities in sections of lending in cases where losses tend to be low. Furthermore, these models do not reflect the probability of a change in the credit cycle.
According to the chairman of one of the largest European lenders, it’s a wise decision to allow the auditing of risk weights. This statement to support audits in banks risk weighting comes after he witnessed a decline in his group’s mortgage risk weighting by ⅓ over the past few years.
The gateway to business expansion is securing patronage. A local business has a chance to succeed when its goods and services receive local attention.
Local business will always get a boost when organizations and individuals patronize such enterprises.
When you realize that many businesses are family-owned around southern Indiana like most parts of the world, then you can begin to give a thought to the impact of such enterprises on local economies.
Every business that employs one or more persons can be seen to be supportive of the local economy considering that they provide a means of gainful employment to such individuals.
Boost to Local Economy
When the factors of production such as land and finance, manpower are engaged, invariably, there is a boost to the local economy as there is added activity, increased aggregate turnover in the particular sectors amongst other considerations.
When you patronize the products of a commercial roofing company around you, you are providing an avenue for the tax revenues to be boosted and for the company to grow or expand its turnover.
Contribution to a Healthy Society
The patronage of a local business will enable such enterprise to employ more people.
And when this happens, more persons are given the opportunity to boost their personal economy, attend to personal needs and bolster the aggregate wellbeing of the community.
The quality of life in such places also receives a boost with more funds made available through patronage of local goods.
Helping the Social Good
The social good gets a boost when more people are employed; local companies pay steady taxes and meet their obligations or attend to corporate social responsibility.
The patronage of metal roofing products made in your community could mean an increase in what such an enterprise can undertake for its local community.
whether this means expansion of the local park or provision of scholarships for higher education, such an effort is worthwhile.
Contributing to a Richer Nation
The Gross Domestic Product of any is the aggregate of the output within the local economy and with more generation of turnover there is an increase in this value.
Patronizing local products within your region means that on the whole, the state’s GDP will be boosted by the margin of that patronage.
So, the riches of the state gets a boost with efforts made to encourage production through buying local.
Better Employment Data
Buying local helps to keep the enterprise in operation and this helps in no mean way to ensure that there is a boost in the number of employed persons around such community.
Whether the local business is into cottage operations or such technological advanced processes as production of tapered insulation system components, the overall effect is laudable.
The basis for patronage of local businesses is well grounded and is the reason for such widespread legislations seen across several countries.
Patronage opens the door for business growth, funding expansion and development of new product lines.
Managing the safety of cryptocurrency transactions is possible and here is what you can learn.
A lot of new cryptocurrency exchanges are growing daily and rapidly worldwide. With the increasing number of cryptocurrency exchanges in the world today, a lot of them are faced with the risk of cyber attack.
So, it is
crucial for all investors who want to invest their money, and a lot of their
money should look out for red flags when choosing cryptocurrency exchanges, as
they should also do their homework and a proper background check on the
cryptocurrency exchange as relating to their fees and security safeguard.
increasing interest of investors who are willing to trade, in this rapidly
growing space, there is a need for security to safeguard cryptocurrency
exchanges. Cryptocurrency exchangers are just like the e-brokerages from the investor’s
cryptocurrency market has been valued above $700 billion, but the market is
still lightly regulated. Some experts in cryptocurrency exchanges say people
who want to invest their money in cryptocurrency should choose an exchange that
suits their individual needs.
Generally, any good cryptocurrency exchange would offer a safeguard against money laundering, and set in some procedures to know their customers, like a cell-phone application for trading and tracking the price, and a quick and easy way to move cash between bank account to the site’s wallet.
But beyond these universal must-haves, there are still some key consideration that needs to be set in place to ensure ease of use and security.
Many exchanges have several servers that are hosted at different locations preferably different countries, just to be safe. As the popular saying goes, “never put all your eggs in one basket”.
Disaster mitigation of cryptocurrency exchanges in simple terms is best understood as the process of responding to a major failure or let down of the system as the system switches to another server that is being hosted in another location.
The disaster could be natural or man-made, so incorporating cryptocurrency to managing and mitigating disaster is attainable. Let us assume that there is a hack, and the attacker gained full control of the entire infrastructure of the exchange.
Using false user pairing, the attacker can easily trick the 2FA user channel. But even when the hacker injects false user pairing into the HSM, perhaps the HSM fails its periodic consistency check, it will automatically shut down the signing plug-in until reactivated by an administrator.
Basically, the shutdown of the server is to ensure that the hacker stays out of the server if a server is hacked or broken; and during this time the exchanger has to switch to its other servers, to ensure continuity of trades.
For example, Binance has multiple servers offshore, even though they have multiple offices in Asia. Their servers allow them to be able to handle more than 130 coins consistently, and if a server gets broken, they rely on the other servers while they fix the broken one without causing a halt to any trade.
Exchanges Server Distribution
cryptocurrency do not have a central computer, but they are distributed across
a network of typically thousand or computer. A network without a central server
is called a decentralized network. Since cryptocurrency has no central
computer, it means no third-party escrow intermediary is required to hold the
funds of the customers in the exchange process.
cryptocurrency decentralized network, transactions are faster and at a cheaper
rate. The removal of the third part authenticator actually reduced the charging
rates and the lag time before a transaction is processed.
servers of the cryptocurrency exchanges have made this system even more
difficult to potential malicious hacks. Because of the decentralized network,
every entry points that hackers could have used to hack the system have been
blocked. Meaning for a hacker to get into the system, they have to compromise
more than half of the whole network.
Overseas Server Location
In other for an exchange to further improve, they engage themselves in acquiring some foreign servers. Some bit exchangers like coinbase, bitterex and the likes, makes use of cloudflare for caching. And cloudflare has servers in most part of the world.
So, you may notice that perhaps you are in say Europe, and you are making connections to servers in the United State of America, when there is a closer server to your location, say probably in Sofia (Bulgaria), or Belgrade (Serbia).
Safeguarding Cryptocurrency Transactions
A lot of cryptocurrency exchanges are keeping the vast majority of about 97% of its assets in a cold storage. This is the best protection they can have. The underlying ideology behind this is to get their assets totally offline, out of the reach of hackers.
But despite this, to properly function normally, they still need to have a type of wallet they can use to connect online with their users. The wallet cryptocurrency exchanges use to connect with its user online is called a hot wallet.
The hot wallets are controlled with APIs, and
the hot wallet is used to approve the order of customers who want to withdraw
of deposit in their accounts. Because this cryptocurrency exchanges have to
validate the transaction of its users with their wallets, the keys must be
In a transaction
authentication of a cryptocurrency, the wallets are designed with specialized
software that can calculate the balance of the user by keeping track of all
incoming and outgoing payments. The wallet is also designed to calculate the
fee that the user would pay to the miners of the network to confirm or
authenticate the transaction.
Once a user sends a certain amount of cryptocurrency, the transaction gets broadcasted across networks, and within a few seconds the receiver would see a pending transaction on his or her wallet.
Then a miner would add the transaction and mine a block which includes the transaction. Once enough blocks have been mined, the transaction would be confirmed with ease.
Cryptocurrency offers a new frontier for many investors around the world, and there is no doubt that with the necessary safeguards in place, it can be a veritable goldmine.
Every aspiring business owner needs to answer some basic questions while looking for funding.What could these be?
The Entrepreneur’s Launch-Out Guide
As an entrepreneur, you have probably done your background checks, developed a concept for your startup, and may also have gained a reasonable customer base to attest to the solutions your startup provides.
You are probably also raking in some revenue already. One thing is certain, at one point or the other, you would want to expand your startup or take some other financial steps and seeking external funding would become inevitable.
Threading a path of success as an entrepreneur is largely dependent on the business idea and strategy you have got up your sleeves, and the kind of funding model you deem comfortable.
However, majority of entrepreneurs lack the legal and financial know-how required when choosing which funding option suits them more.
The overarching consideration is how to choose the best funding option.
Financing Methods and Best Approach
Startup funding is basically in two folds: Alternatives and Traditional financing. Traditional financing includes Venture Capitals (VCs), Equity, Incubators and convertible debt funding.
Alternative financing on the other hand include venture debt, loans, and revenue-based funding. Narrowing down on any of these financing methods will be determined by the nature of your startup and the stage it has attained.
The best approach to finding a suitable funding model is drafting a road map and providing genuine answers to the questions below:
Your decisions should also be framed around the nature, valuation and culture of your company, equity and of course, how much control over key decisions you wish to retain.
Why has funding become necessary at the moment? What are the funds needed for? How much capital cost is required? How do you intend to secure startup capital?
Key Factors to Consider
Before choosing a funding option for your startup, there are some key factors that will aid your decision. Some of which are available funding options, startup goals, control retention, legal advice etc.
These factors will guide you as to how, where, why, when and what; in terms of external funding models.
Here is an overview of some of the important factors you should consider before adopting that financing method.
Set Goals and Milestones
One of the first point of attraction for investors is Vision. How far do you intend to drive your startup?
Articulating your vision, creating excitement about your company and exhibiting positive energy; these are the things that excites and interests a potential investor. You must also consider the following:
What are the non-monetary and monetary goals for your startup over a period of time?
Achieving these set goals will require how much capital? What do you intend to do with the capital? Can a particular funding option aid your startup goals? What milestones can you achieve in the short run that will be a game changer and what can an investor expect in the long run?
These are the key points that you must be able to put together provided you are open to investors. Nobody wants to invest in a business without a future and of course no business owner wants to run into debts.
Equity Financing and Control
Equity financing has proven to be a sound and attractive option for startups because all the cash is splashed by investors. In most cases, startup owners do not have to bother about repayment plans; investors take all the risk with the hope of profitable returns.
Having decided to externally sought funds for your business, you must be aware that you also cease to retain the larger share of profits and sole control over that business even if you still remain the majority shareholder.
Some people would rather lord it over a small firm than be part of a bigger company that can make much impact.
It is, however, important to meticulously negotiate and document equity investments to ensure that the interests of all and sundry are adequately protected.
Rushing into an equity investment deal just because you are desperately in need of quick infusion of capital could put you at a huge disadvantage.
Ability to service loans/ venture debts
Provided you are already raking in a stable cash and from all indications, you can pay up debts, a business loan or venture debt may just be what you need rather than equity investments.
With business loans, you still retain absolute control over your startup. Lenders in this case will most times request exorbitant interest rates on repayments and will also demand that debts are fully paid within a set time.
This type of financing may require guarantor(s) who are also responsible for loan repayments. Venture debts are often the quickest means to financing a startup because its negotiation proceeding is often straightforward compared to other means.
A business owner must weigh up the benefits of ownership retention plus high rates on loan repayments. This ties up with several business and personal risks should the startup fail to rake in funds sufficient to repays loans when making financing decisions.
If you are able to service loans within stipulated periods, ceteris paribus, this funding option may just be good enough for you.
Unique Selling Proposition
The best way to describe this is – What value do you provide to your customers? What customer related problems does your business solve? Is business value enough to attract investors or secure a loan?
Before going out in search of funding for your business, it is important that there exists a satisfactory customer feedback and interaction base.
Your customers must have validated your value either via testimonials or other means. Ensure that you document these testimonials because at a stage, certain investors or lenders might want to put a reference call through to your key customers before splashing the cash.
Understanding Market Share, Growth and Size of Target Market
Majority of investors abide by a particular investment policy; some only invest in the tech market while other invest in vertical markets.
The ability to clearly articulate your market growth, forecast share, and market size is key to securing a credible financial model. Having a holistic idea about market factors will be of great help when seeking out the best funding method from a pool of options.
Convertible Debt Financing
This is very much the same as venture debt because periodic paybacks apply, and debts must be settled in full within a set period (52-76 weeks).
Also, ownership rights do not depreciate immediately. Supposing debts are not repaid after set date, the lender becomes a shareholder in the company by converting debt to equity under certain predefined terms.
This financing model is very predictable in the sense that businesses are aware of loan repayment or renewal timeline.
Convertible debt can however, become a threat to the owner if he/she has no interest in sharing business ownership rights. This takes a long time to obtain because conversion, repayment and equity structure (lender) will have to be negotiated
This is often referred to as convertible equity. In other words, Startups don’t spend the cash, investors do, with no guarantee of recouping capital. This financing model is quite different from equity financing.
In this case, investors do not get to immediately exercise any sort of control over the business neither do they get a share of the profits immediately – all of this only happens at a later date and it is dependent on the occurrence of predetermined events.
This is often the case for publicly traded companies; investors can convert their shares into equity, therefore, acquiring all the privileges and rights as it were with the initial owner(s) of such companies.
Securing flexible financing can be overly slow because of its terms and conditions associated with conversion. On the other hand, discussions about repayment structures or interest rates do not take place, hence, can be quicker than convertible debt.
A successful startup requires careful and solid planning right from very start either with traditional financing or alternatives. However, hastened financial decisions without adequate understanding of the associated terms and conditions could be detrimental to the success of a business.
It is therefore important to seek legal advice before choosing any funding model for your startup as this will help juxtapose the risks and benefits involved and to choose the best option for your business venture.
Investors and entrepreneurs have a need for a winning business plan. Here is a look at some underlying notables.
The Must-See Notables For Crafting A Winning Business Plan
It has been observed that about 20% of new businesses pack up within the first year of their establishment, while a majority do not exceed a lifespan of five years. Many reasons can be adduced for this recurrent unfortunate phenomenon, chief among which is the use of a shoddy business plan.
It is often said that if you fail to plan, you inadvertently plan to fail. Every new endeavor requires an in-depth research on several issues surrounding the area of interest. Such a research will help you understand the concepts and how to develop an effective modus operandi to get intended results.
This is the reason every intending founder of any business needs to have an unambiguous business plan.
A great business idea is only the starting point of a promising business venture. What ensures the success of the business is a deliberate, in-depth and realistic approach in building a strategic plan to establish and grow the business till you can break even.
Though it is possible to eventually make a success out of a business without an initial business plan, it is a risk equal to traveling to an unknown place without a map or leading whatsoever.
guide thus gives a case on the
necessities of a business plan, and the possible drawbacks of not having one.
The process of developing a business plan helps put your dreams and vision for your venture into perspective, enabling you to sort out unrealistic expectations and see more clearly.
More often than not, the excitement of having a potential solution that meets perceived needs of people in an area overshadows a person’s sense of caution and tact.
business plan enables you to do some research that refines your vision to fit
the real needs/wants of your target audience. A business plan also provides a
document to critics who can help point out inadequacies, risks and fantasies in
the business idea; helping to tweak the plan to a reasonable level.
The major danger upcoming/startup businesses face is running out of money. It is necessary to have a near-perfect idea of what total running (capital plus variable) costs will amount to over a specified period of time, so as to draw up how to gather the required fund.
This is one of the things a well drawn business plan enables a business owner to achieve. You can safely avoid running short of cash without making any profit from the business.
ANALYSIS AND MANAGEMENT
the research leading up to writing a business plan, the prospective business
person is able to spot possible risks and challenges to be encountered in the
course of the business. This makes it possible to develop strategies to combat
the risks in the event of their occurrence.
One of the importance of a business plan is to give a prospective investor an overview of what he intends to invest in, the risks and financial promise.
For instance, a bank would need to scrutinize the business plan of a business man seeking a loan facility to finance his business to check if the business is viable enough to repay the loan with accruing interest under the stipulated time frame.
investors also need to look at the business plan to know if the business is
worth the risk of their investment and see terms of repayment in case the
business flops. It should also state what amount of equity the owner is
providing investors if returns are not in cash.
business plan usually serves as a confidence booster in the bleak periods of a
business. A look at the plan after a while will show how far you have come and
overcome obstacles on your path in the business, strengthening your resolve to
solve the present issues confronting you.
Just as a traveler going to a new destination needs a map and maybe a GPS device for direction, an intending business owner needs a business plan to give a direction from the start of the business up till when he breaks even.
A business plan could also serve as a template for future expansion. It is a reference that can be looked up to know which milestones have been achieved and which challenge is next to be taken up.
new technology and emerging market data sometimes make a business owner lose
originality and focus, swaying the business away from its foundational goal. A
business plan therefore is important as a medium of checking if the current
business philosophy and targets are in line with initial goals, and enable
correction and a reset if the business has gone off its course.
business plan carefully highlights the different parts of the proposed business
model and their intricacies and interconnections. This gives a broad view of
the relationship between the parts of the business and also the mutual effects
of the capital elements (labour, capital etc.) on one another. This outlook
helps to determine how each element can be varied to create optimum results at
the most reasonable costs.
of the challenges emerging ventures face is choosing which business
establishment steps to take at particular times, which options of marketing and
distribution to utilize, among other service delivery options. A business plan
helps outline the focus and goals of your business such that you know which options
to pick above others, and which steps in your road
map should be taken before or alongside another.
From the benefits outlined so far, it is evident that having a comprehensive business plan before launching a business venture is really important to its success.
A well-researched plan serves as an anchor for the owner to fall back on when challenges arise, as well as a tool for convincing potential investors on the safety and potential profits on their investments in the business.
ICOs have made the whitepaper famous. There is no doubt that a well-written whitepaper gives a project a huge mielage.
cryptocurrency technology officially clocked a decade in 2018, as the Bitcoin
was introduced to the public on 31st October 2008. At
this time, the mysterious originator of Bitcoin, Satoshi
Nakamoto published his whitepaper titled “Bitcoin: A peer-to-peer Electronic
Cash System”. Cryptocurrencies are virtual financial instruments introduced to
enable value to be exchanged via digital media.
crypto world, proponents of new currencies usually raise funds from the public
to float their firm. This is like the Initial Public Offering (IPO) used by
companies in mainstream investment to raise funds from the public, but in the
cryptosphere it is called Initial Coin Offering (ICO).
several ICOs fighting daily for relevance in the crypto world, and one of the
ways through which the strategies being designed for successfully floating a
cryptocurrency are marketed to the public is publishing a great whitepaper.
A whitepaper in this case, is a detailed document containing an explanation of the technology being proposed for a blockchain project.
It contains an in-depth breakdown of the network of the system and how it will interact with subscribers, requirements for issuance of tokens, data on market trends, growth projections and information on investors, project team personnel and their advisors.
This is a
document pitching the proposed business to investors, hence it is important
that it is richly garnished to catch the interest of readers. Thus, it is
important for a whitepaper to employ some important ingredients discussed
DETAILED PROJECT OUTLINE
that can make a whitepaper stand out is a comprehensive examination of the
problem the project has set out to solve. The idea is to make this simple and
articulate enough to catch the attention of the reader and wet his appetite for
more information on the project.
Most prospective crypto investors get to see a wide variety of whitepapers with all kinds of proposals, thus it is important to write a catchy outline that keeps the reader interested in the project.
Using clear and concise graphics to explain technical details of the problem, solutions offered by your product and the expected returns will boost acceptance of the whitepaper, and invariably the project.
outline should contain a clear roadmap of the key events to be carried out in
the business, and the deadlines set for these. This gives the investors an idea
of what to look out for and how to measure the progress of the project.
A major way to enhance credibility of a whitepaper and promote its acceptance is to do in-depth research in the area the project intends to be grounded. It is important to find out where previously released whitepapers of past projects have failed, and thus posit a realistic solution to the problems they failed to see or were unable to solve effectively.
An investor who sees that data and information obtained from failed and inadequate past projects are well analyzed and used to create a solution will be easily convinced to put in his asset into the project.
It has been
observed that not every reader of whitepapers is an expert in cryptocurrency.
People who don’t know so much about the system might also come across the
whitepaper, hence dishing out information in clear and
simple terms is key.
known the root problem, solution design and expected returns
on investment in simplified terms and language increases the reach of the
document. Making a layman understand the whole point of the project increases
the chances of getting many investors on board.
MASSIVE TOKEN UTILITY AND USAGE ANALYSIS
Every investor wants to buy a token that has vast applications and can be used for several purposes. A classic whitepaper must show how the token you are proposing can be useful to investors, such that keeping it in their portfolios turns out to be an asset to them. The higher the utility of your token, the more valuable it is to subscribers, and the higher the sales at the ICO.
realistic plans to get the token listed on popular exchanges should be clearly
stated in the document, so as to put the mind of investors at rest and boost
their confidence in increasing investment levels. This prevents lots of
speculation and sudden dumping of your tokens by holders.
that boosts the confidence of any prospective investor reading a whitepaper is
a clear explanation of how you intend to spend the money you raise from your
ICO. An investor who sees a clear plan detailing how their monies will be used
in building the product till it is well-known and widely applicable gets more
confidence in the project.
whitepapers lack such depth, and lots of investors have lost funds invested in
projects that looked initially promising but had no clear plans for using funds
to establish and improve the product. Every investor needs to be convinced that
their investments won’t end up being used to fund the founder’s expensive
CREDIBILITY OF TEAM MEMBERS
seasoned investors have come to understand the importance of a great and
experienced team in the success of a crypto project. It is therefore important
for any serious new entrant into the crypto sphere to carefully showcase the
talents and experience of the team members.
prospective investors some confidence based on the proven past accomplishments
of the team members. This is also important as it is one of the criteria
newbies in cryptocurrency investors will prefer to do business with teams who
have proven success stories to their credit. A good example is the OmiseGo
project, where the team members were from the successful Ethereum project and
other established projects.
Every cryptocurrency project, like any other type of start-up business, requires a well drafted pitch, which in this case is what a whitepaper represents.
It is certain that taking heed to all the tips mentioned in this guide, will help prospective project founders to write an awesome whitepaper that will catch the attention of a large audience of investors.
An ETF (or Exchange-traded Fund) is a marketable
security which tracks a basket of assets, an index, etc. Via an ETF, you have
access to shares by buying from a stock exchange that houses the assets. It is
much better, cost effective, and easier than buying shares from individual
companies. All you have to do is to buy from a stock exchange that contains
many other similar assets; and your shares will be evenly distributed
throughout all the assets on the exchange.
The concept of Exchange-traded funds has now found
good use in the cryptocurrency market. The way ETFs are defined on the normal
stock exchange market is the same way it is defined on the blockchain market.
Hence, a blockchain ETF involves investing in a basket of blockchain-based
industries. This is done by investing in a particular exchange that contains
several similar blockchain industry assets too.
One of such exchanges amidst many others is Coinbase.
Coinbase currently supports just 5 digital assets which are the biggest
well-known and widely accepted cryptocurrencies, and are also accepted by the
regulating body – SEC (Security and Exchange Commission).
The cryptocurrencies found on Coinbase are: Bitcoin
(BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC) and Litecoin
Recently, an exchange, CBOE (Chicago Board of
Exchange) submitted a proposal to the SEC requesting that they accept their
Bitcoin ETF in the crypto market. Interestingly, ever since the SEC declared
their intentions to make known their verdict by August 10th 2018;
all eyes have been eagerly looking, all minds have been pondering on what the
SEC would decide. “Will it be for or against the interest of the crypto
market?” is the question on many lips.
Moreover, a number of people are uncertain about the
consequence it will have on the crypto market. For some, it is a victory trail
for the crypto market because it will skyrocket profits, and encourage
investment on other coins too. While for some others, it may not be so good
since the crypto market has no prior experience in this matter.