by admin_786 | May 1, 2023 | Banking
U.S. banking giant JP Morgan has been confirmed as the new owner of First republic bank after presenting a winning bid. The First Republic Bank collapsed in April, prompting the regulators to take control of it. It’s now the third major bank to fail in only two months.
JP Morgan to the rescue!
JP Morgan, one of the largest banking institutions in the U.S., has rescued the drowning First Republic Bank. JP Morgan presented a winning bid and took control of the FRB bank on MAY 1, 2023, in a deal spearheaded by the California Department of Financial Protection and Innovation (DFPI).
The DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver in the deal it accepted from JPMorgan Chase bank to assume all deposits. It said that the reason behind the deal was to protect investors, as the bank did not have any feasible plan to revive its operations.
‘To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,” the Federal Deposit Insurance Corporation said in a statement
The bank had a valuation of over $200B before April 13, 2023, only to disclose that it had lost over $100B in customer deposits in Q1 2023, which made its shares collapse. The bank’s $3.51 on Monday’s Pre Market, which is too low, is considered to be the $170 per share it was trading in the past year.
The FRB bank has become one of the recent major banks to fall after Credit Suisse and Silicon Valley Bank. The trend of these banks collapsing has become an issue to investors and customers who have seen the loss of deposits across all banks. Leaders like President Biden and the Governor of the Bank of England also think that banks will be tested for a while longer.
Keep watching FintechExpress for updates on banking and other finance-related news.
by admin_786 | May 1, 2023 | Cryptocurrencies
Meme coins, the coins driven by speculations only have showcased an increased growth in the past 24 hours. They have claimed the top four spots of the highest gainers in the crypto market today even as the whole crypto market dropped by 1.98% to $1.18T total valuation.
PEPE breathes back life to meme coins?
PEPE, one of the newest meme coins in the Crypto market seems to have brought back life to the meme culture in the crypto market. This coin became notable over the past weeks when a person turned around $60 to over a million dollars in a few days.
Now, meme coins have been receiving increased attention from crypto investors on social media which reflects even in the market. Today, these coins claimed the top four spaces on the five best-performing cryptos. They performed as follows:
Notably, there were no meme coins in the top 5 losers of the day. DeFi coins took the highest number among the top 5 losers with 3 coins while socials tokens took two spots.
Disclaimer: none of the information in this article should be considered investment or financial advice. Always DYOR and only invest what you can afford to lose. Follow us on Twitter to see our news as soon as we post them.
by Fintech Express | Apr 13, 2023 | Banking, Finance
The social media giant, Twitter, has partnered with financial services provider eToro to allow crypto and stock trading. This development comes after Elon Musk recently revealed that he wants the social media platform to be the most significant financial establishment alongside providing other services to its users.
Elon Musk’s Twitter eyes the finance sector
Twitter has partnered with the financial services platform eToro to allow its users to trade stocks and cryptos. The new functionality will take effect on April 14, 2023, and will be a giant leap in the Billionaire’s dream of making the platform a giant in financial services provision and eventual “Super app” level.
A new feature will be rolled out on Thursday to allow Twitter users to view market charts and get access to an expanded range of financial tools. It will connect users to trade stocks and other financial assets traded on eToro, per an exclusive report by the social media giant CNBC.
At the time of writing, Twitter had already integrated real-time market charts from TradingView on index funds like S&P 500 and some major companies like Tesla. To access this information, a user must use Twitter’s “Cashtags” feature to search for a crypto/stock ticker symbol and insert a dollar sign informed of it. The UI will show price information from TradingView.
According to the report, the new partnership will expand the Twitter hashtags to cover more asset classes. It will also have a button to redirect the users to eToro’s site, where they can trade them.
“As we’ve grown over the past three years immensely, we’ve seen more and more of our users interact on Twitter [and] educate themselves about the markets,” Yoni Assia, eToro’s CEO, told CNBC in an interview.
“There is very high quality content, real-time content on financial analysis of companies and what’s happening around the world. We believe this partnership will enable us to reach those new audiences [and] connect better the brands of Twitter and eToro.”
Keep watching FintechExpress for updates on this and other finance-related stories.
by Samuel Mbaki | Apr 13, 2023 | Finance
Group of Seven (G7) finance heads have promised to take action to strike stability of the global financial system following the recent banking collapse. They have stated that they will give low and middle-income countries a more significant focus on diversifying supply chains to make them more resilient.
Better measures to be taken to calm the finance sector
The finance heads who met on the sidelines of the International Monetary Fund and the World Bank meetings in Washington said they had been discussing recent financial turmoil concerning the collapse of Silicon Valley Bank and Credit Suisse.
“We commit to jointly empowering low- and middle-income countries to play bigger roles in supply chains through mutually beneficial cooperation by combining finance, knowledge, and partnership, which will help contribute to sustainable development and enhance supply chain resilience globally.”
G7 Finance Ministers and Central Bank Governors
Shunichi Suzuki, Japan’s Finance minister, said they would continue monitoring the finance sector as they have seen their efforts are paying off.
“We will continue to closely monitor financial sector developments and stand ready to take appropriate actions to maintain the stability and resilience of the global financial system.”
Shunichi Suzuki, Japan’s Finance Minister
The officials noted that the supply chains needed now should be more efficient and resilient. They added that they need to diversify the current “highly concentrated” ones but particularly said that their actions are not in any way aimed at affecting China.
This meeting and deliberations come after Brazil, Russia, India, China, and South Africa (BRICS) have gained strength by pulling their efforts together and attracting other nations like UAE and Mexico. There have been reports that these world powers may seek to topple the US Dollar.
The international monetary fund has released economic forecasts warning that the fragmentation of the global economy owing to geopolitics will reduce longer-term growth potential and said only 3% growth is expected in 2028. Their prediction is the lowest five-year projection since it started the service in 1990.
by Fintech Express | Apr 12, 2023 | Cryptocurrencies
Ethereum is almost completing its process of transitioning to the full Proof of Stake mechanism. Its community chose this validation mechanism over Proof of Work because it is more energy efficient and faster in transaction speeds.
This upgrade will comprise two updates being uploaded and activated concurrently: the Shanghai upgrade and the Capella upgrade. They will go live on April 12, 2023, and allow validators to unstake their ETH tokens (stETH). It will also bring forth several new capabilities like increased transaction speeds, lower transaction fees, and reduced staking risks.
What to expect from the Ethereum network upgrade
Ethereum’s Shapella upgrade is expected to be bearish and bullish at different time frames. It will be bearish in the short term due to the unlocking of staked ETH, which may cause a sizeable selling pressure.
Currently, over 30 million ETH worth $30B has been staked, about 15% of the current circulating supply. Around 3.3M ETh worth over $6.5B will be eligible for unstaking within the first eight weeks of the upgrade going live. As such, some market commentators expect around $2.5B of selling pressure to rock the ETH market.
If the selling pressure goes this high, the value of the ETH token will be negatively impacted on a short-term basis. However, if the network’s upgrade is successful and brings the intended efficiency, the ETH token may react positively in the mid to long-term timeframe and become bullish.
Although ETH is a major cryptocurrency, it doesn’t necessarily translate that other cryptos will gravitate to its market direction after the upgrade goes live. Keep watching Fintech Express for updates on crypto and other fintech-related news and developments.
This article doesn’t in any way reflect the views of Fintech Express and is not financial advice. We are not liable for any losses caused by any information read from this or any other article that we publish. Do your own research and make decisions based on it. Thanks!
by Samuel Mbaki | Apr 11, 2023 | Technology
Jack Ma’s Alibaba has announced that it plans to roll out its AI chatbot, Tongyi Qianwen. The company will roll out the chatbot and integrate it with its tech ecosystem in the “near future”.
AI usage continues spreading
The launch of OpenAI’s chatbot ChatGPT brought life to a sector thought only to be futuristic. Since then, numerous artificial intelligence applications and platforms have surfaced, with major technology giants like Microsoft showing interest in the industry.
Now, Alibaba has joined the club and is developing its version of an AI chatbot to compete with the innovations in the market. According to a report by BBC, the company’s version will be named Tongyi Qianwen, which translates to “seeking an answer by asking a thousand questions.”
The report explained that this chatbot is set to be integrated with the company’s vast tech ecosystem, including its workplace messaging app DingTalk and voice assistant smart speaker Tmall Genie. It will also be able to communicate in English and Mandarin at the first stage of launch.
Additionally, its task scope will include transcribing conversations into written notes, composing emails, and drafting business proposals. However, whether the chatbot can accomplish more creative tasks than ChatGPT already does is still being determined. This concern is a major issue as other big tech companies like Google and China’s Baidu are developing their versions of AI, namely Bard and EernieBot, respectively.
The fast growth of the AI sector has attracted mixed reactions from users, tech innovators, and governments. Some, like Elon Musk, believe that AI could be an existential threat to human life, while others believe it could solve significant issues like harsh work environments. As such, Alibaba’s chatbot must abide by the rules that China’s Cyberspace Administration has set to ensure that it is “Accurate and doesn’t “endanger security.”
by Fintech Express | Apr 8, 2023 | Podcast
Around the Block With Jefferson Nunn – Interview With Jaydeep from Launch Nodes
In the podcast, Jaydeep from Launch Nodes explains how their platform helps both financial businesses and individuals to stake their assets independently. Solo staking infrastructure allows users to maintain full custody of their funds while still participating in the staking process.
Launch Nodes provides a secure and easy-to-use platform for solo staking, enabling users to stake various cryptocurrencies and earn rewards. By staking with Launch Nodes, users can avoid the risks associated with delegating their funds to a third-party staking service, as they are able to maintain full control over their assets.
Jaydeep also discusses the benefits of staking with Launch Nodes, including the ability to earn rewards while still maintaining full control over one’s assets. Additionally, Launch Nodes provides users with a range of staking options and allows for seamless integration with various wallets and exchanges.
Overall, Launch Nodes provides a reliable and secure platform for solo staking, empowering users to take full control of their staking assets while still participating in the staking process and earning rewards.
by Fintech Express | Apr 8, 2023 | Podcast
Around the Block With Jefferson Nunn – Interview With Azeem Khan from Gitcoin.
In the podcast, Azeem explains how Gitcoin is leveraging blockchain technology to create a more open and collaborative ecosystem for software development.
Azeem also discusses how Gitcoin is working to make open-source development more sustainable by creating new funding models that can help developers get paid for their contributions. This includes experiments with quadratic funding, which is a way of allocating funds based on community support, rather than relying solely on the contributions of a few wealthy individuals or organizations.
Overall, Gitcoin is working to create a more open and collaborative ecosystem for software development, leveraging blockchain technology to create new funding models and incentivize contributions to open-source projects.
by Samuel Mbaki | Apr 4, 2023 | Finance
Virgin Orbit stocks sank 14% in premarket following news that the company was filing for Chapter 11 bankruptcy proceedings. The company also plans to lay off nearly all its workers after failing to secure funding for its space missions.
Is Virgin Orbit out of business?
California-based satellite launch company Virgin Orbit filed for Chapter 11 bankruptcy proceedings on April 4, 2023, due to funding issues. It submitted its decrement to the U.S. Bankruptcy Court in Delaware, looking to liquidate all its assets.
Dan Hart, the company’s CEO, spoke about the matter, saying that the steps taken are currently best for the company despite their previous efforts.
“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” he added; at this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.”
The company added that it had obtained $31.6M in funding from Virgin Investments via “debtor in possession” financing. This financing process allows businesses that have filed for Chapter 11 bankruptcy protection to keep operating.
Why did the company go under?
A series of difficult situations befell Virgin Orbit, forcing it to want to cease operations. The company was founded in 2017 by Richard Branson, who also owns a 75% stake. The second largest stakeholder is Abu Dhabi sovereign wealth fund Mubadala.
The space company designed its rockets to be set in orbit by modified Beoing 747 jets. It has launched six missions since 2020, with four successes and two failures. However, its last mission suffered mid-flight failure resulting in the rocket’s crash into the ocean.
Since then, it failed to secure funding for several months, with its majority owner Richard Branson unwilling to fund it further. As a result, it reached the inevitable point of filing for bankruptcy. Keep watching Fintech Express for more finance-related news.
by Samuel Mbaki | Apr 3, 2023 | Blockchain
Solve.Care, a well-known Web 3 health services provider, has taken a step forward by introducing a new Layer 2 blockchain (Care.Chain). The organization revealed that the new blockchain would help advance its mission to improve healthcare access, delivery, management, and payment while benefiting consumers and health institutions.
Introducing Care.Chain, a decentralized layer 2 healthcare-oriented blockchain network
Solve.Care has confirmed the launch of Care.Chain, its L2 blockchain optimized to solve specific challenges prevalent in the healthcare industry. Some of the challenges that the network seeks to improve include patient access to health data, the rising cost of running administrative processes, trust and compliance issues, and the provision of proof of competence, such as healthcare licensing and certification.
Care.Chain will also come with new healthcare computing primitives via introducing ZK (Zero Knowledge) verifiable runtime for events. This solution will allow for several other use cases beyond basic distributed ledger technology. It will also provide out-of-the-box support for waller-based apps introducing peer-to-peer communications and processing business deals.
According to the official announcement by Solve.Care, the chain will also combine the power of Ethereum Virtual Machine (EVM) and verified credentials-based event stream processing to build a unique Healthcare Event Virtual Machine. It added that the network would allow for the development of dApps (decentralized applications) like NFTs and Peer to peer communications between healthcare roles.
As such, the network will support direct communications between two key parties without needing a moderator/ third party. That will increase data security as only the involved parties will know about any healthcare event. Additionally, the network will have a native token like most L2 networks. Its token will be called SOLVE. Keep watching FintechExpress for updates on this and other Web 3-related developments.
