Crypto Hedge-Fund Bubble to Deflate, Bloomberg Thinks

According to Bloomberg, at least nine funds have been shuttered so far this year and funds have losses of 23 percent in 2018, industry tracker says
03 April 2018   324

In 2017 on the background of an impressive price jump of bitcoin, more than 150 hedge funds were launched, thanks to which many institutional and private investors paid attention to cryptocurrencies. However, since December the bitcoin rate has more than halved, forcing investors to start thinking twice before placing their funds in similar enterprises, Bloomberg writes.

New capital has slowed, even for a higher-profile fund like ours.

Kyle Samani

Co-founder of Multicoin Capital

 This fund was launched in August last year and has about $ 50 million under management.

At the same time, such a noticeable decrease in the price of bitcoin and other cryptocurrencies resulted in at least nine funds, including Crowd Crypto Fund and Alpha Protocol, are stopping their work, removing websites and accounts from social networks.

Considering the potential regulatory and market risks, AlphaProtocol has decided that the best approach is to refund the private sale contributors.

Alpha Protocol Team

Polychain Capital, as of September 2017, is probably the largest cryptocurrency hedge fund with about $ 250 million under management, in January, decided to refuse to enter the stock exchange in Canada. Even earlier, in December, billionaire Mike Novogratz refused plans to launch a crypto fund, directing efforts to create a trading crypto-currency bank and investments in related technologies. 

According to Lex Sokolin, director of financial engineering at Autonomous Research, until the end of 2018, up to 10% of all crypto funds may be terminated, while Rick Marini from Protocol Ventures believes that only 50 funds will be able to attract sufficient external capital to lead sustainable business. The remaining funds, he said, will have problems.

Nevertheless, even against the background of lower prices, optimists are still present. In particular, they see the potential in the blockchain techology, as well as in such crypto-currencies as Ethereum, Ripple and Litecoin.

According to Marini, now he receives on average three pitches from new crypto-currency funds. He usually meets representatives of two of them, but he plans to invest only in one or two in 2018.

Line to Launch Bibox Exchange in Singapore

Bitbox supports 28 digital currencies, including Bitcoin, Ethereum, USDT, XRP, Litecoin, Ethereum Classic, Bitcoin Cash, Bitcoin Gold, MonaCoin, Qtum and Golem
16 July 2018   140

One of the most popular messengers in Asia Line has launched a Bitbox exchange in Singapore. Trading on the platform started this morning and is limited to pairs with crypto-currencies, Cryptovest reports.

Bitbox supports 28 digital currencies, including Bitcoin, Ethereum, USDT, XRP, Litecoin, Ethereum Classic, Bitcoin Cash, Bitcoin Gold, MonaCoin, Qtum and Golem.

BITBOX is only for trading cryptocurrencies (Digital Tokens). Fiat currencies (USD, KRW, etc.) cannot be exchanged on BITBOX.

Bitbox Website

Bitbox charges a 0.1% commission and supports 15 languages, including English, Korean, Chinese, Spanish, French and German. In Russia, the US, Japan and some other countries, the exchange is not available.

At the beginning of the year, Line Group applied for a license to the Japan Financial Services Agency, but the process dragged on because of tightening of the regulator's requirements in the light Coincheck exchange hack. All crypto exchange, wishing to provide services in the Japanese market, are required to obtain permission from the local regulator.

Currently, Line is also in the process of obtaining a license in the US. The company decided to open its first trading platform for crypto-currencies in Singapore, as this city-state adheres to a progressive approach to the regulation of the digital currency sphere.

With cryptocurrency, we are going to take our challenge in financial services global.

Takeshi Idezawa

CEO, Line

In May, Line Group denied rumors that it intends to release its own token and distribute it through the ICO. Every month Line is used by about 200 million people. The messenger is extremely popular in Japan, South Korea and Thailand.