Circuit Capital: Mainstream Bitcoin and Blockchain Adoption Is Growing

San Francisco and Singapore-based hedge fund Circuit Capital is claiming that bitcoin and cryptocurrency adoption is growing, and that the institutional presence in the digital asset arena is stronger than ever.

The Price Isn’t So Hot

At the time of writing, the cryptocurrency space is undergoing a massive price slump. Bitcoin, for example, is at its lowest point in over a year, and is trading for about $5,500.

Some analysts are blaming the losses on the bitcoin cash fork scheduled to take place today November 15, 2018. Marcus Swanepoel – co-founder and CEO of cryptocurrency trading wallet Luno – recently stated:

This drop in the price is more than likely due to the hard fork scheduled by bitcoin cash. The bitcoin cash blockchain has been undergoing scheduled hard forks every six months to upgrade and improve the protocol. In most cases, these hard forks are uncontested with the whole community supporting them. In this case, however, consensus couldn’t be reached with two factions emerging, and proposing different solutions for the upgrade.

Don’t Let Numbers Fool You

Circuit Capital isn’t letting this news get the best of its research team. Partner Eugene Ng claims that people are concentrating too much on the prices of bitcoin and its crypto-cousins, but that behind closed doors, several institutional traders have become involved, and mainstream adoption is growing like nobody’s business.

Set to go live in the first quarter of 2019, Circuit has built a Bitcoin and cryptocurrency index that measures the adoption rates of blockchain technology amongst major corporations and businesses, and according to ten specific data points – i.e. the number of active crypto wallets, transaction volumes and web searchers for Bitcoin and related terms – the index is suggesting that crypto and blockchain adoption is spiking fast.

Good Things in the Coming Months

In a recent blog post, Ng mentioned that some of the other driving forces behind Bitcoin adoption are fund redemptions, a lagging retail presence, funds buying not by initial coin offerings (ICOs) but by equity, smart money shorting and positive news trends.

He further explains:

The most compelling market narrative for the next bullish cycle is that institutions will be the main catalyst driving the market. For these traditional entities to gain direct exposure to crypto, they must be able to trade, settle and store assets in an institutional-grade environment. I am excited for 2019 because the foundations for a marketplace will be laid. The buildout of this infrastructure will grow alongside clarity in regulations and regulated investment product offerings that will bring massive inflows of capital.

Will Bitcoin adoption continue to grow, or can we kiss goodbye to everyone’s favorite cryptocurrency? Post your comments below.

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Could Increasing Costs Make ICOs Too Expensive for Startups?

The co-founder of a successful ICO-funded platform believes that the market is changing and it’s becoming more and more expensive for startups to launch ICOs.

Last year saw the crypto industry filled with drama as prices soared and mad rushes ensued as people tried to get a piece of that FOMO-inducing Bitcoin action. It also saw a lot of startups turn to ICOs as a way to raise the capital they needed for their businesses. Tony Pearce’s gaming platform was one of those involved in the ICO revolution.

Are ICOs becoming too expensive?

The Rising Cost of ICOs

According to, Pearce is one of the co-founders of Reality Gaming Group, which is the studio responsible for the mobile AR shooter game, Reality Clash. The latter was made possible through an ICO that generated $3.5 million. However, while Pearce’s venture achieved success, he warns that as the industry continues to evolve, other startups might not experience the same, relatively inexpensive, joy. He explained:

It’s amazing what’s happened in the last year – I can’t believe how much has changed. We spent hardly anything when we did our ICO because we were an interesting project. At the time, the only ICOs that were happening were big blockchain enterprise projects and big tech stuff. We came along with this cool, sexy game and actually stood out from the crowd.

Pearce added that while initially eliciting excitement from potential investors, gaming ICOs may have lost some of their luster. He believes that ICO hopefuls today would actually need to have some of their own capital before they even think of using this decentralized funding model. He says:

Twelve months on, if we were to do the same thing again, it would cost us £200,000 to £300,000. The cost of just being listed on the bigger ICO listing sites, the cost of marketing through those sites, has just gone through the roof. If you were a brand new ICO, the cost of launching right now… I’ve heard rumours that it’s around the £500,000 mark by the time you’ve got lawyers in, sorted the marketing campaign out – it’s not for start-ups anymore. We were a total start-up, but if we were to do this now, I don’t think we could have afforded to.

ICO scams

Weeding Through the Scams

However, for the public, it’s not just about finding that one exciting project to invest in. It’s also about not falling victim to fraudulent ICOs, something that the U.S. Securities and Exchange Commission (SEC) appears to be assisting in with their Operation Cryptosweep.

In addition, success isn’t guaranteed just because funds were raised. Live Bitcoin News reported that a study shows that out of all of the ICOs listed last year, 86% of the tokens are actually trading below their initial listing price while 30% have lost almost all of their value.

However, it is still a multi-billion-dollar industry, raising over $15 billion in the first six months of this year alone.

Do you agree with Pearce? In this age of financial revolution, do you still need to spend money to make money? Let us know in the comments below!

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Ripple Partners with Leading Malaysian Bank on Cross-Border Payments

Leading Malaysian bank has partnered up with technology company Ripple to use its xCurrent technology in settling cross-border transactions.  

Another One Joins the Ripple Train

CIMB Group Holdings, a leading Malaysian bank with over 1,000 branches across the region of Southeast Asia, has partnered up with technology firm Ripple.

According to a joint press release, the bank will be using Ripple’s xCurrent technology in its SpeedSend remittance product and will join Ripple’s network – RippleNet, which will facilitate the access to other members and will allow CIMB to further grow and improve its cross-border payment endeavors.

Speaking on the matter was Tengku Dato’ Sri Zafrul Aziz, CEO at CIMB Group, who noted:

We are delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths and capabilities. This innovative blockchain solution will revolutionise international cross-border remittances, and is a testament to CIMB’s ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN.

Increased Adoption

According to Ripple’s CEO, banks and other financial institutions are increasingly starting to lean towards blockchain technology because of its advantages:

We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience.

Indeed, Ripple seems to be adding more and more financial institutions to its RippleNet. Just a few days ago, Live Bitcoin News reported that the company has signed a Memorandum of Understanding (MOU) with Banco Bradesco S.A. to power up a new international payment corridor between Brazil and Japan.

In October, multinational commercial bank and financial services company Banco Santander said that it will be using RippleNet to settle the payments carried out through its OnePay FX platform.

What do you think of the increasing number of financial institutions using Ripple’s technology? Don’t hesitate to let us know in the comments below!

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