Crypto Roundup: EOS Do-Over, Blockchain Island and the Rise of the Subscription-Based Exchange
Wednesday nearly marked a new year-to-date low for cryptocurrencies, as bitcoin struggled to hold a key support and altcoins continued to track double-digit percentage losses week-over-week. But behind the bearish price outlook are a slew of headlines that could be interpreted as positive from the perspective of crypto adoption and regulation.
Welcome to Blockchain Island
Malta is living up to its ‘blockchain island‘ moniker after the tiny Mediterranean nation Tuesday passed a slew of crypto-friendly laws. As CCN and Hacked reported, Malta has codified three bills aimed at boosting cryptocurrency and blockchain adoption.
One piece of legislation – the Virtual Financial Assets Bill – seeks to regulate the red-hot but controversial market for initial coin offerings (ICOs). Among the many requirements set out by VFA is a government-mandated whitepaper for all ICOs seeking residence in Malta. Given that the whitepaper is codified into law, ICOs will be held to a higher standard than the current trend dominating the industry (basically, shoddy papers hastily put together with inconclusive timelines and spelling mistakes).
Malta has managed to poach some of the world’s largest cryptocurrency companies, which are eagerly looking to set up shop in the country. Chief among them are Binance and OKEx, the world’s two largest digital currency exchanges by trading volumes.
June has been nothing short of a disaster for the highly touted but poorly executed EOS project. After a slew of false starts, quick bug fixes and account suspensions, the brains behind the project has proposed to scrap the constitution entirely.
“I am merely saying that the current constitution is not wise,” says EOS creator Dan Larimer, who drafted the blueprint while serving in the capacity of chief technical officer at Block.one.
“I have learned a lot about human nature by watching the disputes, the witch hunts, the ‘bring everything before ECAF’ mindset,” he said, referencing EOS’ arbitration forum. According to CCN, Larimer has drafted a new constitution he is confident will get full backing from the community.
“An arbitrator can render an opinion, and the parties can either comply or not and the arbitrator can indicate whether a party is in good standing… that is it. An arbitrator should not ever have the power to take assets unless said assets were previously placed in control of the arbitrator. I don’t agree with placing all assets under control of producers.”
EOS has given up nearly half its value in recent weeks.
Subscription-Based Exchange Gains Traction
A cryptocurrency trading platform by the name of DX.Exchange has announced that 500,000 users have pre-registered for its upcoming service. What makes this Estonian exchange so unique is its plan to run a subscription-based model instead of charging a percentage fee on all trades, which is the standard for exchange services.
Under the proposed model, DX.Exchange users can trade up to €50,000 EUR in a given month for a flat fee of €10. Percentage fees are applied only when traders exceed this monthly limit.
DX.Exchange holds two licenses with Estonia’s Ministry of Economic Affairs and Communications. The exchange has reportedly entered into an agreement with Nasdaq to use its matching engine for arranging trades.
DX says the new partnership, combined with its compliance with government regulations, will enable it to attract both retail and institutional funds fgrom around the world.
Crypto Ownership to Double in U.S., Europe: ING
Bitcoin’s recent bear-market low won’t deter adoption of digital assets in the long run, according to a new study by ING Bank.
The study, which was based on a survey of U.S., European and Australian residents, showed more people expect to own cryptocurrencies in the near future. One-quarter (25%) of Europeans said they expect to own digital assets in the future despite only 9% owning them today. The U.S. results were similar; only 8% of respondents own cryptocurrency today but 21% say they expect to own them at some point in the future.
Crypto awareness is also on the rise, with two-thirds (66%) of Europeans indicating they had heard of cryptocurrencies. That figure is as high as 70% in Australia and 57% in the United States.
The results bode well for an industry that is is struggling to attract more retail investors during a half-year downturn. The researchers concluded that people are willing to ‘buy into the trend’ despite concerns of underlying risks associated with bitcoin and other digital assets.
Only time will tell whether mass retail adoption will continue. In the meantime, major exchanges and institutions are pushing for custodial services to shore up institutional interest in digital assets.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.