The research branch of one of the largest crypto exchanges-Binance that we cover often in our altcoin news has published a report where it says that the newly announced JPM Coin by JPMorgan Chase is a ‘’minimal direct competition’’ to Ripple’s XRP token.
As DC Forecasts previously reported, JPMorgan Chase announced the launch of their new stablecoin in the middle of February which will be backed 1:1 by the bank’s reserves.
Per the research, the JPM Coin project will mainly focus on value transfer between financial institutions and will be issued on a private blockchain network Quorum which is a fork of the public ETH blockchain.
The stablecoin is highly unlikely to directly compete with the XRP token because of its ambition to serve as a multi-bank mediator currency while the JPM Coin currently offers a closed network solution.
The Binance analysis suggests that the new JPM Coin ‘’could make the institution the largest stablecoin issuer on a blockchain measured by circulating supply and total market cap.’’
The study continues that the coin is likely to become a potential ‘’precursor to the third generation of stablecoins’’ which will aim to change the traditional financial institutions and will also have a purpose for the business regarding the private blockchain-powered tokens. Although the JPM Coin may have a significant impact on lowering the cost and is more time efficient, the study notes that:
“Large banks and financial institutions […] have a distinct set of advantages in issuing fiat-collateralized stablecoins, but these offerings will not displace liquid, publicly traded stablecoins in the near-term given their closed ecosystems built on private blockchains.”
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“By using Coinify, we are not running into the knife. It is still not clear to me how blockchain is any better than other database technologies. The transactions are so far more expensive and slower than a normal payment method. Decentralization brings only cumbersome improvements. None of the blockchains scale enough. But maybe I have not invested enough time and therefore understand too little how the blockchain ecosystem works.”Herren said that the decision comes after the prolonged bearish correction on the market where most of the crypto assets lost nearly a third of their value. Despite the fact that investors didn’t really get scared of the decline in prices, institutional adoption is still uncertain regarding making more profits. For example, back in 2018 in June, the Expedia hotel booking platform deleted Bitcoin out of their options and in the same year couple of months back, Reddit also stopped accepting cryptocurrency for its gold membership plans. Years back, Bitcoin became popular because of its attractiveness as a cheaper alternative for expensive payment processors. But as the technology got more popular, the network was unable to handle a higher number of transactions such as Visa or MasterCard and that’s why retailers didn’t choose crypto for making transactions. The Swiss retail giant brings bitcoin back into the retail game. However, traders who are into crypto or those who just hold on to it for better days can now use their coins to purchase something from the retail platform.
New Report Shows That Bithumb Is Laying Off 50% Of Its Staff
“Voluntary retirement is part of our support program for former employees and is intended to provide assistance and training for job placement. Apart from that, [Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses.”Bithumb still hasn't responded to the requests for comment. However, many speculate that this move is right because of the crypto winter which led to a lot of minuses all over the market. Still, what's interesting is that Bithumb has been preceded by many other firms in the sector - such as the mining giant Bitmain, the blockchain software company ConsenSys, the decentralized social network named Steemit as well as the similar crypto exchanges Coinsquare and Huobi - all of the companies which have decided to make significant cuts in the recent months. According to data from CoinMarketCap (CMC), Bithumb has seen more than $1.3 billion in trades over the past 24 hours. The exchange, however, was removed from the CMC global exchange rankings in January 2018 mostly because of the concerns that the site had over the reportedly "extreme divergence in prices from the rest of the world" and its fellow exchanges in South Korea. Currently, everyone is waiting for an official confirmation about the layoff from Bithumb. The respected exchange hasn't confirmed anything yet but will probably do that over the next couple of days.
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