The week’s developments in the crypto currencies world including Ripple completes promised investment in MoneyGram

Ripple completes promised investment in MoneyGram

Major money transmission network MoneyGram has announced that blockchain-based payments firm Ripple has completed its original commitment with a final $20 million investment.

In a press release on 25 November 2019, MoneyGram announced that Ripple Labs Inc. has made a final $20 million equity investment in MoneyGram as part of Ripple’s original $50 million equity investment commitment. In June, the two companies entered into a 2-year-strategic partnership to collaborate in cross-border payments and foreign exchange settlements with digital assets. As part of the agreement, MoneyGram would be able to draw up to $50 million dollars from Ripple in exchange for equity.

MoneyGram will reportedly use Ripple’s xRapid liquidity product to allow for money to be sent in one currency and instantly settled in the destination currency. By using Ripple’s XRP token for such transfers, xRapid can purportedly settle such transactions faster than with fiat currencies or other major digital assets. Ripple’s CEO Brad Garlinghouse commented on the latest investment:

“Last month, we announced that MoneyGram began using On-Demand Liquidity for payments to the Philippines, and we’re excited to support MoneyGram’s further expansion into Europe and Australia. Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments — MoneyGram and Ripple is an example of that … In June, we announced this partnership, and it’s encouraging to see the rapid growth and benefits come to life.”

Source: https://cointelegraph.com/news/ripple-to-invest-up-to-50m-in-moneygram-following-new-partnership

Travala partners with travel giant booking.com

Travala, a service that allows its users to pay for hotel stays with cryptocurrency, will now let its customers reserve any hotel that is bookable through Booking.com. Travala announced on 25 November 2019 that it has already integrated Booking’s accommodations to its platform. The new feature will purportedly allow users to book 90,000 different destinations using cryptocurrencies.

Travala’s customers will be able to pay with its proprietary AVA token and 20 major crypto assets including Bitcoin (BTC), Ether (ETH), Dash (DASH), Bitcoin Cash (BCH), Litecoin (LTC), EOS, Stellar (XLM), Cardano (ADA), Binance Chain (BNB), Monero (XMR), Tron (TRX), XRP and Dai (DAI). The firm’s CEO Matt Luczynski commented:

“This partnership allows our users to access Booking.com’s accommodation listings, as well as the listings from several other leading travel suppliers, which is a fantastic use case for our own AVA token and another huge step towards mass cryptocurrency adoption.”

Source: https://cointelegraph.com/news/crypto-booking-firm-travala-partners-with-travel-giant-bookingcom

Closure of crypto firm which raised $12.7M from ICO

A cryptocurrency startup which settled with the US Securities and Exchange Commission (SEC) over its illegal token sale has shut down. Washington-based Gladius Network said last week that it had “ceased operations effective immediately and has filed for dissolution. Despite our best efforts, the company no longer has funds to continue operations. Our code will remain available on GitHub for the next three months. We still believe in the power of our technology, and if anyone in the community is interested in pursuing it we welcome it.”

Gladius Network, which helped clients fight off cyberattacks, agreed to refund investors in its digital token sale after the SEC said the company failed to advise them about potential business risks. However, a Telegram group comprising individuals claiming to be spurned investors has emerged, with many unsure the status of refunds.

The company raised $12.7 million (around 24,000 ETH) through its initial coin offering (ICO) in 2017. As part of its settlement with SEC, Gladius Network was required to submit a registration statement by May 20, 2019. However, the deadline was then extended to November 18. It is not known whether the business actually filed the statement before shutting down.

Source: https://thenextweb.com/hardfork/2019/11/26/crypto-firm-that-raised-12-7m-with-ico-admits-it-ran-out-of-money-closes-doors/

Bitcoin Price Closing 2019 Above $10,000 “Wouldn’t Surprise” This Crypto Analyst

According to Plan B, the anonymous crypto analyst who is famous for creating the stock-to-flow (S2F) model, the Bitcoin price could still end this year on a high note, surging above the $10,000 level. He stated that it is a rare situation when the top coin is trading below the S2F model value with only six months left until the next halvening. As reported by U.Today, the BTC price increased by ten percent on 25 November after falling to $6,500 on the same day. The BTC price is trading at $7,205, CoinStats data shows.

Bitcoin has not seen the $10,000 price tag since 25 October 2019 when it rose 40 percent on the overhyped China news. The price growth turned out to be a flash in the pan, and BTC got trapped into another major sell-off.

Source: https://u.today/bitcoin-price-closing-2019-above-10000-wouldnt-surprise-this-crypto-analyst

Crypto investors undecided on a new bitcoin bottom

In other reports relating to Bitcoin, the market is torn as to whether that outcome is a realistic one or not.

Financial markets are driven by a number of dynamics including fundamentals, technicals, and even the emotional state of the investors making up the market. In the crypto market, hype and speculation are the primary drivers of price and perceived value. This gives Bitcoin and other cryptocurrencies their notorious price volatility as sentiment swings back and forth in either direction. The market has long been convinced that Bitcoin had bottomed back in December 2018, resulting in a powerful breakout in April 2019 that took the price of Bitcoin up over 350% to as high as $14,000 from the $3,100 low.

But now that Bitcoin is once again trading as low as $6,500 – prices not seen since the 2018 price floor that eventually gave way, taking Bitcoin to its bottom at $3,100 – crypto investors are now once again wondering if the bottom is actually in, and if lows under $3,000 are a realistic expectation or not. According to a Twitter poll showed the market is torn as to whether or not such an expectation is realistic or unrealistic. The largest portion of the vote went to Bitcoin price trading below $3,000 being an unrealistic expectation. This would suggest that most traders believe the bottom is in and will hold as such, regardless of the severity of Bitcoin’s current downtrend. The crypto asset has fallen from $10,500 to as low as $6,500 in a little over one month, and before that, back in June Bitcoin was trading at as high as $14,000.

Source: https://www.newsbtc.com/2019/11/25/crypto-investors-torn-on-if-a-new-bitcoin-bottom-is-realistic/

Claire Cummings

Claire practises financial services law with a focus on regulatory issues, cryptocurrencies and tokens, trading and brokerage documentation and advising both existing and start-up funds and fund managers.

If you would like to discuss any of the points we raise, please contact me or one of our other lawyers.

Phone: 0207 585 1406
Email: claire.cummings@cummingsfisher.com

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