DX.Exchange, a community-based exchange has now made it possible to trade stocks such as Tesla, Apple, Facebook among others via tokenization using ERC20 tokens on the Ethereum network. The exchange announced that these services will be launched on January 7, 2019, and this will be the first time securities can be purchased with Bitcoin [BTC] and other cryptocurrencies.
This will test the virtual stock market among the users that were previously unequipped to buy the US-based stocks and also test these new waters. Another upside to the tokenization of stocks is that users can trade these stocks even after the actual markets close, and also buy portions of stocks, which was previously not possible.
The exchange’s CEO, Daniel Skowronski, said:
“We saw a huge market opportunity in tokenizing existing securities. We believe that this is the beginning of the traditional market’s merge with blockchain technology. This is going to open a whole new world of trading securities old and new alike.”
Moreover, MPS Market Place will hold these stocks in a 1:1 peg against these physical assets, which is similar to the functionality of stablecoins, but they use stocks instead of fiat money as a peg.
The exchange has offices in Estonia and Israel and claims that it is fully regulated by the Estonian Financial Intelligence Unit and that they have full authorization to operate in the European Union. In addition, the exchange is said to be Nasdaq’s Matching Engine technology as reported by Bloomberg.
The exchange also confirmed on Twitter that DigiByte [DGB] will be a cryptocurrency that can be used to purchase the above-mentioned stocks. The exchange has to confirm if other cryptocurrencies such as XRP and BTC can be used.
Stephen Palley, a well-known person in the crypto-community and a lawyer, tweeted about the exchange saying:
“Yeah, I’m going to send money to an Estonian and Cypriot regulated exchange and get ERC-20 tokens that represent stocks but are not stocks and sure they’re not CFDs also do you sell guppies sounds tots legit what could go wrong”
In a subsequent tweet, he stated:
“Look, even if it is totally legit — hey it might be, what do I know — good luck getting your disputes resolved in Estonia if you’re, y’know, not in Estonia.”
76284|Ethereum [ETH/USD] Price Analysis: Coin bids adieu to bull market as bears take over
Ethereum [ETH], the second largest cryptocurrency by market cap, indicated the presence of both the bull and the bear. According to CoinMarketCap, the cryptocurrency was trading at $136.39 with a market cap of $14.36 billion, at press time. The coin displayed a trading volume of $5.06 billion, and a rise of 1.47 percentage in the past seven days. The coin also dropped by 2.79 percentage in the last 24 hours.
1-hourIn the one-hour chart, the cryptocurrency demonstrated downtrends from $142.52 to $138.83, and from $138.43 to $134.85. The uptrend for the coin was outlined from $132.91 to $134.49.
The coin’s immediate resistance was pictured at $138.94, and strong resistance was laid at $140.21. The immediate support for the cryptocurrency was found at $132.75, and there was strong support at $130.69.
Parabolic SAR indicated a bullish market for the coin as the dotted lines were below the candlesticks.
Chaikin Money Flow forecast the opposite, as the money flow took the exit route.
Bollinger Bands diverged, suggesting some volatility and price movement for the coin.
1-dayIn the one-day chart, the downtrends were displayed from $218.66 to $157.56, and further from $157.55 to $138.72. The first uptrend for the currency was drawn from $82.92 to $103.22, while the second extended from $103.22 to $134.41.
The immediate resistance for the cryptocurrency was at $140.53, and strong resistance was at $157.60. The coin’s immediate support was at $125.09, and strong support was seen at $103.13 and $82.79.
Klinger Oscillator showed that the bull was losing out as the reading line was pictured below the signal line after a crossover.
RSI indicated that the buying pressure and selling pressure for the cryptocurrency evened each other out.
MACD forecast the bear’s position to be well ahead of the bull, as the moving average line dipped below the signal line right after a crossover.
The market suggested a strong bearish presence for the cryptocurrency, and a fading bullish presence. This was attributed to the MACD and Klinger Oscillator from the one-day chart, and CMF from one-day chart siding with the bear.
76127|Ethereum’s [ETH] Vitalik Buterin says ETH’s crowd sale being classified as securities sale is not worrisome
Vitalik Buterin, Co-founder of Ethereum [ETH], spoke about the recent ‘Ethereum is not a security’ controversy, during the Unchained Live event with Laura Shin.
Earlier this week, U.S. Securities and Exchange Commission Chairman, Jay Clayton, stated in a letter to Coin Center that he agreed with the statements made by William Hinman, the Former Director of Corporate Finance – SEC. The statement he agreed to was that, a token offered for sale could be initially be a security, but its designation could change over time if it did not meet the definition of the investment contract or the Howey framework.
Interestingly, Hinman had used Ethereum’s token, Ether, as an example for this explanation during his speech. Hinman had said, “The present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether,” are not classified as securities transactions. This remark disregarded the fundraising aspect to the creation of Ether.
During the event, Laura Shin stated that based on the SEC’s remarks, it was likely that the crowd sale of Ethereum would be considered a violation of securities laws. This was followed by Shin asking Vitalik Buterin if he was “worried about an enforcement action” against him, and the other co-founders.
To this, Buterin replied,
“It’s something, so far, we haven’t like seen anything suggesting it is, anything like that happening. I mean we definitely have like our lawyers and legal teams and they’re definitely are watching the situation closely but so far we haven’t seen any reason to be worried for ourselves”
Following this, Shin asked Vitalik Buterin whether this was something he would stress about. Buterin responded, “I would say, no. And, probably what mainly listening to our lawyers and legal teams at this point.”
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