Adyen, a money transmitter company, experienced a stock flash crash on Thursday by 39% after the company announced its slowest revenue growth on record.
Adyen has been seen for a long as a growth stock after posting consistent revenue growth of 26% each half year since its 2018 stock market debut.
European economic slowdown caused the flash crash of Adyen stock, a payments company following news that it had slowed growth for the first time since 2018. The event claimed $20 billion from the company’s total valuation.
Slow European economic growth affects multiple companies
The Eurozone has been battling high inflation rates with the possibility of a recession being on the horizon. As a result, multiple companies have decreased productivity, anticipating a contracting market.
On Thursday, Payments Company Adyen released monetary reports indicating that it was for the first time in the first half of the year since 2018 expecting slowed revenue growth. This stock had been viewed as a growth stock as it had posted consistent 26% growth in each year’s H1 since its debut.
As a result, a massive sell-off happened, making it lose 39% of its share value, equivalent to 18 billion euros or $20 billion. Though the company comfortably weathered the pandemic turbulence, the major shift in the Eurozone macroeconomic environment has challenged its growth strategy greatly, which is to blame for the dismal performance.
Additionally, it is still expected that pain will persist in the Eurozone markets as inflation rates remain unsurprisingly high, necessitating more action from the concerned governments and central banks. However, the region is not promised how long the ‘harsh’ economic environment will last.
Keep watching Fintech Express for more updates on finance and other fintech-related developments.
China’s Country Garden, a real estate developer, is set to be removed from Hang Seng Index on Sept 4 and be replaced by Sinopharm.
Country Garden Services will also be removed from the Hang Seng China Enterprises Index and be replaced by Trip.com following reports that the real estate company is struggling financially.
China’s real estate sector continues experiencing challenges as big companies like Country Garden and EverGrande remain distressed. The two companies, once the largest in the country, are now nearing their end as EverGrande files for bankruptcy and Country Garden shows displeasing business prospects.
Chinese real estate sector continues being hammered as Country Garden and EverGrande go down
Country Garden, once China’s leading property developer, has been struggling to keep afloat in the ongoing economic drawbacks, with its shares plunging 70% YTD (year-to-date).
This company is not struggling alone in the real estate sector, as its competitor, EverGrande, has also filed for bankruptcy in the US. The ongoing meltdown in the Chinese real estate sector comes as the economy is stalling, proving not as strong as the world expected it to be following the post-Covid 19 open up.
As a result, productivity is decreasing in the country, which is a bad factor as the US and EU are rising against their global supply chains as their economic ties with them sour. In August, Country Garden failed to meet its bond coupon payments, which prompted issuing of a profit warning and suspending the trading of its 11 mainland China bonds.
It also has under 30 days to make the missed coupon payments on two dollar bonds coupons worth $22.5 million. As a result of this dismal performance and displeasing business prospects, the company has been replaced in Chinese Indexes, with bankruptcy remaining in sight.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
The world of cryptocurrencies is a dynamic and rapidly evolving landscape, offering both tremendous opportunities and significant risks. As an investor, identifying promising and lower-risk crypto assets is a critical skill that can lead to favorable returns and long-term success. In this article, we’ll delve into a comprehensive guide on how to select crypto assets with potential while minimizing risks.
What to Note
Thorough Research is Key The foundation of successful crypto asset selection is thorough research. Here are some key steps to consider:
Whitepaper Analysis: Scrutinize the project’s whitepaper to understand its goals, use cases, and technological innovations. A well-documented whitepaper demonstrates a clear vision and execution plan.
Team Evaluation: Assess the team’s credentials, experience, and track record. A strong and capable team increases the likelihood of successful project execution.
Technology and Innovation: Study the technological aspects of the project. Look for innovative features, scalability, security measures, and compatibility with existing blockchain ecosystems.
Community Engagement: A vibrant and engaged community can indicate strong project support and potential for growth. Active communication and transparency between the team and the community are positive indicators.
Metrics and Factors to Consider
Market Capitalization and Liquidity Market capitalization reflects the total value of a crypto asset and can provide insights into its potential for growth. However, solely relying on market cap can be misleading. Consider both market cap and trading volume to assess liquidity and market activity. Higher liquidity reduces the risk of price manipulation and ensures smoother trading.
Use Cases and Real-World Adoption Evaluate the practical use cases of the crypto asset. Does it solve a real-world problem? Projects with clear and impactful use cases are more likely to gain adoption and maintain value over time.
Partnerships and Collaborations Strategic partnerships and collaborations with established companies or institutions can enhance the credibility and visibility of a project. Partnerships indicate that the project is gaining recognition within the industry.
Tokenomics and Circulating Supply Tokenomics refers to the economic structure of a cryptocurrency. Consider factors like token supply, distribution, and issuance mechanisms. Projects with controlled supply and well-defined token utility are often more sustainable.
Regulatory Compliance Investigate the project’s compliance with relevant regulations in its operating jurisdiction. A project that adheres to legal requirements is likely to have a more stable regulatory outlook.
Security and Development Security is paramount in the crypto space. Assess the project’s security measures, code audits, and responsiveness to vulnerabilities. Regular and transparent development updates are indicative of a committed and proactive team.
Long-Term Viability Assess the project’s long-term viability and potential for sustained growth. Consider whether the project has a clear roadmap, regular updates, and plans for continued development and innovation.
Diversification StrategyDiversification is a fundamental risk management strategy. Avoid putting all your funds into a single crypto asset. Instead, create a diversified portfolio that includes a mix of well-researched assets across different sectors.
Conclusion
Selecting promising and lower-risk crypto assets requires a combination of diligent research, careful analysis, and risk management. While the potential for high returns exists in the crypto space, it’s crucial to approach investment decisions with a discerning eye and a focus on long-term viability. By following the steps outlined in this guide, investors can navigate the complexities of the crypto seas and make informed decisions that align with their financial goals.
In the ever-expanding realm of cryptocurrencies and blockchain technology, the term “tokenomics” has gained significant prominence. It refers to the economic structure and design principles underlying a cryptocurrency or blockchain project. Tokenomics plays a pivotal role in shaping the behavior of participants, the utility of tokens, and the overall success of a project. This article dives deep into the world of tokenomics, unraveling its key components and highlighting why they matter in the cryptocurrency ecosystem.
Understanding Tokenomics
Tokenomics, a portmanteau of “token” and “economics,” encompasses a range of factors that define the economic aspects of a cryptocurrency ecosystem. These factors include:
Token Supply and Distribution: Tokenomics outlines the total supply of tokens that will ever exist and how they are distributed. A well-structured distribution plan ensures fairness, prevents concentration of wealth, and promotes broad participation.
Utility and Use Cases: Tokens often serve various functions within a project’s ecosystem, such as accessing services, participating in governance, or representing ownership in assets. Tokenomics defines these use cases, contributing to the token’s value proposition.
Scarcity and Demand: The interplay between token supply and demand directly influences its market value. Scarcity, achieved through controlled issuance, can drive demand as users seek access to limited resources or services.
Incentive Mechanisms: Tokenomics designs incentives to encourage desired behaviors within the ecosystem. Incentives can include rewards for staking, participating in governance, or contributing to the network’s security.
Token Burning and Buybacks: Projects may implement mechanisms to reduce token supply, such as token burning (permanently removing tokens from circulation) or buybacks (repurchasing tokens from the market). These actions can impact scarcity and token value.
Governance and Decision-Making: Many projects incorporate decentralized governance, allowing token holders to influence project decisions. Tokenomics defines the voting power and mechanisms that enable community participation.
Why Tokenomics Matters
Economic Alignment: Tokenomics aligns the interests of various stakeholders, including developers, users, investors, and miners. A well-designed token economy ensures that participants are incentivized to act in ways that benefit the ecosystem’s growth and sustainability.
Value Proposition: Tokenomics defines the utility and value proposition of the token. This, in turn, influences its market demand and adoption. A token with clear use cases is more likely to attract users and investors.
Community Engagement: Tokenomics can foster a vibrant and engaged community. By enabling token holders to participate in governance and decision-making, projects empower their supporters and create a sense of ownership.
Scarcity and Demand: Controlled token issuance and scarcity can drive demand, potentially leading to increased token value. This economic principle mirrors traditional supply and demand dynamics.
Project Funding: Token sales, initial coin offerings (ICOs), and token generation events (TGEs) are common fundraising mechanisms for blockchain projects. Tokenomics determines how funds raised are utilized to develop the project.
Network Security: In Proof-of-Stake (PoS) and Proof-of-Work (PoW) blockchains, tokenomics can influence the security of the network. Staking and mining incentives encourage participants to contribute resources for network operation and security.
Challenges and Considerations
Creating effective tokenomics requires a delicate balance between economic theory, technical implementation, and community engagement. Some challenges and considerations include:
Sustainability: Tokenomics should ensure the long-term sustainability of the project. Rapidly depleting token supply or unsustainable incentive structures can undermine the ecosystem.
Regulatory Compliance: Projects must navigate regulatory frameworks to ensure that their tokenomics comply with relevant laws and regulations.
Token Manipulation: Poorly designed tokenomics can potentially lead to market manipulation, pump-and-dump schemes, and other undesirable behaviors.
Evolving Landscape: The cryptocurrency ecosystem is dynamic, and tokenomics may need to adapt to changing market conditions, user preferences, and technological advancements.
Conclusion
Tokenomics serves as the bedrock of cryptocurrency projects, shaping their economic structure, behavior incentives, and overall success. A well-crafted tokenomics model aligns the interests of various stakeholders, enhances community engagement, and contributes to the value proposition of the token. As the cryptocurrency landscape continues to evolve, understanding and implementing effective tokenomics will remain crucial for creating sustainable and thriving blockchain ecosystems.
In the rapidly evolving landscape of cryptocurrency and blockchain technology, token offerings have emerged as a significant means of raising funds for projects and startups. Two primary types of token sales, namely presale and public sale, play a pivotal role in attracting investment and fostering community engagement. This article delves into the nuances of presale and public crypto sales, shedding light on their characteristics, benefits, and potential risks.
Presale: A Strategic Prelude
Presale, often referred to as a private sale, represents the initial stage of a token offering where a limited number of tokens are made available to a select group of investors before the public sale. This exclusive phase is characterized by several key features:
Strategic Partnerships: During the presale, projects aim to secure strategic partnerships with influential investors, venture capitalists, and institutions. These partnerships not only provide financial backing but also lend credibility to the project, attracting more investors during subsequent stages.
Discounted Rates: Participants in the presale often benefit from discounted token prices compared to the public sale. This incentivizes early investment and rewards early supporters of the project.
Lock-up Periods: To prevent immediate selling and promote long-term commitment, presale participants may be subject to lock-up periods. These periods restrict the transfer or sale of tokens for a predetermined duration.
Limited Availability: Presales typically have a cap on the number of tokens available, ensuring scarcity and potentially driving demand for the token.
Public Crypto Sales: Embracing Wider Participation
Following the presale phase, the project moves on to the public sale, which involves offering tokens to a broader audience, including retail investors and the general public. Public sales come in different forms, such as initial exchange offerings (IEOs), initial coin offerings (ICOs), and security token offerings (STOs). Here are some key aspects of public crypto sales:
Accessibility: Public sales aim to democratize access to investment opportunities by allowing a wider range of individuals to participate. This inclusivity promotes community engagement and decentralization.
Regulatory Considerations: The regulatory landscape for public sales varies across jurisdictions. ICOs and IEOs have faced scrutiny due to concerns about investor protection, fraud, and compliance with securities regulations. STOs, which are backed by tangible assets, often involve more stringent regulatory requirements.
Community Building: Public sales provide an avenue for projects to build a dedicated community of supporters and enthusiasts. Community engagement can contribute to the project’s success by fostering brand loyalty and encouraging ongoing participation.
Market Dynamics: Public sales can introduce tokens to the broader market, potentially leading to price discovery and liquidity. However, the influx of tokens into the market can also influence token value, requiring careful management by the project team.
Navigating Risks and Rewards
Both presale and public crypto sales offer distinct advantages and challenges. For investors, it is essential to conduct thorough due diligence before participating in any token sale:
Research: Investigate the project’s whitepaper, team credentials, technology, and use case. Assess the project’s viability and potential for long-term growth.
Transparency: Look for projects that prioritize transparency and provide clear information about their tokenomics, roadmap, and future plans.
Legal Compliance: Ensure that the project complies with relevant regulations in your jurisdiction. Unregistered securities offerings can lead to legal complications for both projects and investors.
Vesting Schedules: Understand the vesting schedules and lock-up periods associated with presale tokens. Consider how these mechanisms may impact token liquidity and price dynamics.
Conclusion
Presale and public crypto sales represent integral components of the cryptocurrency ecosystem, enabling projects to secure funding, engage communities, and bring innovative ideas to fruition. While presales offer strategic advantages to early backers, public sales embrace wider participation and community building.
Both avenues, however, come with their own set of risks and rewards that demand careful consideration by both projects and investors. As the crypto space continues to evolve, understanding the dynamics of these token offerings is crucial for making informed investment decisions and contributing to the growth of this transformative industry.
Defunct crypto lender Celsius is set to allow its creditors to vote for the sale to Fahrenheit Consortium following a Thursday approval from a judge.
Celsius Creditors will be able to recover 67% to 85% of the company’s holdings if the sale goes through
Celsius creditors have been given a legal green light to hold a vote on whether to sell to Fahrenheit Consortium, a process that could see them recover 67 to 85% of their holdings.
Celsius creditors to vote on the plan to escape bankruptcy
Celsius network bankruptcy was filed in 2022 as the company could not meet its operational budget, and user money had been spent. As an aftermath, a court proceeding has been going on to ensure a smooth company transition as several interested buyers have shown up.
Celsius Network ex-CEO Alex Mashinsky has been arrested for fraud and is under US investigations. However, all is not lost for the company’s creditors. On August 17, a judge gave a legal green light for a vote to be held regarding the sale of the crypto lender.
This development is a final step for the year-long awaited solution of bankruptcy protection legal proceedings and the return of funds to customers. The interim CEO of the company, Chris Ferraro, said that they now remain focused on creating the best outcomes for both customers and creditors.
“We remain laser-focused on creating the best outcome for customers and creditors and returning value as soon as possible.”
Keep watching Fintech Express for more updates on this and other fintech-related developments.
Ethereum and Cardano co-founder Charles Hoskinson has taken a shot against at Ethereum, calling it a “dumpster fire” due to its development approach.
He added that he pities Ethereum maxis, and Cardano’s comparison with Ethereum is now going too far.
Charles Hoskinson has expressed his uncertainty with the Ethereum roadmap amid comparisons to his Cardano ecosystem. He has taken a shot against Ethereum, saying its consensus layer is a “dumpster fire.”
Charles Hoskinson says he pities Ethereum maxis
Charles Hoskinson was one of the co-founders of Ethereum. However, he defected from the development team and went on to build Cardano and its native coin ADA.
Cardano has similar perks to the Ethereum network, attracting investors’ interest, making it one of the largest coins by market capitalization. It is also seen as an alternative to Ethereum by some.
Charles Hoskinson is fond of campaigning for the Cardano ecosystem as it keeps growing and has one of the highest daily developer activities in the industry. Recently, an interesting fan take on his Cardano project being similar to Ethereum and doubts about its roadmap has caught his attention.
He responded to the fan saying the comparison between the two is getting delusional now and that Cardano users now are “living rent-free in the maxi minds.” he also added that he pities the maxis as Ethereum has a “dumpster fire of a consensus layer.”
“Ethereum has a dumpster fire of a consensus layer, has a terrible programming model that they can’t change, and are getting eaten alive by their layer two ecosystems.”
Additionally, he said that Cardano’s sidechain plans would mutually benefit both the Cardano blockchain and the sidechain, unlike Ethereum.
It's getting delusion town now. Hydra is live on mainnet and evolving fast. Mithril is live as well and the first step towards a rich DA and light client strategy. We already designed a significantly better way of handling transactions via tiered pricing and Babel fees.
The Cardano Foundation first published a research paper on the Hydra network in March 2020. The network is meant to be a layer two solution that uses sidechains to offload transactions from the main Cardano network making it more scalable ad faster.
The research explained that Hydra could process about 1000 transactions per second and have 1000 stacking pools, each of which could process 1000 TPS giving Cardano a throughput of 1 million transactions per second.
The first mainnet compatible Hydra node was released on May 11 2023, teasing an upcoming Hydra Pay, a layer two integration with Cardano wallets that bears instant settlement and a “gazillion TPS.”
However, there still needs to be a certain product launch date, with Cardano remaining with a low average of daily transactions. It serves an average of 65K compared to Ethereum’s 1 million transactions. Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
A bitcoin flash crash that saw the price of the coin dip to $25K levels has seen over $1 billion in both longs and shorts liquidated
The crash now stands as one of the biggest ever in the liquidations history of the coin
Crypto traders are left counting huge losses as $1.04B in liquidations happened over the last 24 hours as the price of Bitcoin fell to $25,200.
Bitcoin crash liquidates both shorts and longs at a record rate
The recent flash crash of the coin caused its futures market to become highly unstable, claiming over $1 billion in liquidations for both shorts and longs positions.
Per data from the on-chain analytics platform Crypto Rank, traders at OKX had the highest hit accounting for $332M of total liquidations, while Derbit followed closely with $273M in liquidations. At the same time, Binance had $218M, Huobi had $107M, and Bybit came fifth with $56M in liquidations.
At the time of writing, the coin’s price was still not fully recovered as it traded at $26,300. The coin still has a low trading volume though it is showing recovery signs; however, it is not promised to fully recover in the coming hours as weekend bearish sentiment may be setting in. Do your own research and trade accordingly.
Keep watching Fintech Express for more market updates and other fintech-related developments.
In today’s interconnected world, access to financial services is considered a fundamental necessity for economic stability and growth. However, a significant portion of the population, especially in certain regions, faces a challenging situation known as “banking deserts.” This article aims to shed light on the concept of banking deserts, their causes, and the far-reaching implications they have on individuals and communities.
1. Defining Banking Deserts:
A banking desert, also referred to as a financial desert or bank desert, is an area characterized by limited or no access to traditional banking services. This includes a scarcity of physical bank branches, ATM networks, and financial institutions offering basic services like savings accounts, loans, and financial advice.
2. Factors Contributing to Banking Deserts:
Several factors contribute to the emergence of banking deserts. These include:
Economic Factors: Low-income neighbourhoods or regions with limited economic opportunities may struggle to attract financial institutions.
Population Density: Sparse population and remote locations can deter banks from establishing a presence due to the perceived lack of profitability.
Operational Costs: High operational costs associated with maintaining physical branches in certain areas may dissuade financial institutions.
Regulatory Barriers: Regulatory requirements and compliance burdens can impact a bank’s decision to operate in specific areas.
3. Impact on Underserved Communities:
Banking deserts disproportionately affect underserved communities, leading to several negative consequences:
Limited Access: Residents have to travel significant distances to access banking services, leading to inconvenience and time constraints.
Financial Exclusion: Lack of access to banking services can result in financial exclusion, hindering individuals from building credit, saving, and investing.
Predatory Practices: In the absence of traditional banks, alternative financial services like payday lenders may exploit vulnerable individuals with high-interest rates.
4. Challenges Faced by Banking Deserts:
Banking deserts pose significant challenges:
Limited Financial Literacy: Lack of access to financial institutions can hinder the development of financial literacy and money management skills.
Wealth Disparities: Banking deserts can exacerbate existing wealth disparities between different communities.
Economic Development: Insufficient access to financial services can impede local economic development and growth.
5. Efforts to Address Banking Deserts:
Efforts to alleviate banking deserts include:
Community Banks and Credit Unions: Establishing or promoting community banks and credit unions can help fill the void left by larger financial institutions.
Mobile Banking Units: Some organizations deploy mobile banking units to reach underserved areas temporarily.
Financial Education: Providing financial education programs can empower residents to make informed financial decisions.
6. Technological Solutions and Digital Banking:
Advancements in technology have enabled digital banking to bridge the gap:
Online Banking: Internet-based banking services provide access to financial services without the need for physical branches.
Mobile Banking Apps: Smartphone apps allow users to conduct banking transactions and access services remotely.
Fintech Innovation: Financial technology (fintech) companies offer innovative solutions like peer-to-peer lending and digital wallets.
7. Promoting Financial Inclusion:
Promoting financial inclusion involves:
Collaborative Efforts: Partnerships between governments, financial institutions, and nonprofit organizations can help expand access to banking services.
Microfinance:Microfinance institutions provide small loans and financial services to individuals who lack access to traditional banks.
Access to Credit: Expanding credit options for individuals with limited or no credit history can foster financial inclusion.
8. Collaborative Initiatives and Policy Measures:
Government and regulatory bodies can play a role by:
Easing Regulations: Streamlining regulatory processes can encourage financial institutions to operate in underserved areas.
Incentives: Offering incentives to banks that establish branches in banking deserts can promote increased access.
Data Collection: Collecting data on banking deserts helps policymakers make informed decisions to address the issue.
Conclusion:
Banking deserts remain a pressing challenge, hindering financial inclusion and exacerbating economic disparities in underserved communities. Addressing this issue requires a multi-faceted approach, combining technological innovation, collaborative efforts, and supportive policy measures. By working together to expand access to financial services, we can create a more inclusive and equitable financial landscape for all individuals, regardless of their geographic location.
In the ever-evolving digital landscape, starting and growing an e-commerce business has become an enticing opportunity for entrepreneurs and retailers alike. With the global e-commerce market projected to continue its rapid expansion, it’s crucial to equip yourself with the right strategies and knowledge to thrive in this competitive arena. This comprehensive guide will walk you through the essential steps to launch and successfully scale your e-commerce venture.
1. Understanding the E-commerce Landscape:
Before diving into the world of e-commerce, it’s essential to understand its various models, including B2B (business-to-business), B2C (business-to-consumer), and C2C (consumer-to-consumer). Researching the pros and cons of each model will help you choose the right fit for your business.
2. Finding Your Niche and Market Research:
Identify a niche that aligns with your passions and expertise while addressing a specific market demand. Conduct thorough market research to assess competition, target audience, and potential profitability. Utilize tools like Google Trends, SEMrush, and social media platforms to gain insights.
3. Creating a Solid Business Plan:
A well-structured business plan serves as your roadmap to success. Outline your business goals, target audience, value proposition, pricing strategy, and financial projections. A detailed plan will guide your decisions and attract potential investors or lenders.
4. Building Your E-commerce Website:
Choose a user-friendly and customizable e-commerce platform, such as Shopify, WooCommerce, or Magento. Optimize your website for mobile responsiveness, fast loading times, and intuitive navigation. Incorporate high-quality images, clear product descriptions, and a secure payment gateway.
5. Sourcing Products and Inventory Management:
Decide whether you’ll manufacture, source, or dropship products. Build strong relationships with suppliers, ensuring product quality and reliable delivery. Implement efficient inventory management systems to prevent overstocking or stockouts.
6. Implementing Effective Marketing Strategies:
Craft a comprehensive digital marketing plan encompassing search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email campaigns, and influencer collaborations. Use data-driven insights to refine your strategies over time.
7. Providing Exceptional Customer Experience:
Prioritize outstanding customer service, from pre-purchase inquiries to post-purchase support. Implement a user-friendly return and refund policy. Personalize interactions, gather feedback, and continuously improve based on customer suggestions.
8. Scaling Your E-commerce Business:
As your business gains traction, explore expansion opportunities such as diversifying product offerings, entering new markets, or partnering with complementary brands. Secure additional funding if needed to support growth.
9. Data Analytics and Continuous Improvement:
Leverage analytics tools to track key performance indicators (KPIs), such as conversion rates, website traffic, and customer behavior. Use data-driven insights to optimize your website, marketing campaigns, and overall business strategy.
10. Legal and Regulatory Considerations:
Ensure compliance with e-commerce regulations, data protection laws, and taxation requirements in your target markets. Protect your intellectual property through trademarks, copyrights, and patents, if applicable.
Conclusion:
Embarking on an e-commerce journey requires meticulous planning, dedication, and adaptability. Following the steps outlined in this guide, you’ll be well-equipped to start and grow a successful e-commerce business. Remember that continuous learning, innovation, and a customer-centric approach are the cornerstones of long-term success in the ever-evolving e-commerce landscape.
