Binance.US has scored another win after securing a partnership with MoonPay after having its US bank ties severed.
The exchange was on the spot after a lawsuit from the US SEC, prompting the banks to draw away from it as preventive measures.
Binance.US has scored another win after partnering with MoonPay to restore USD deposits and withdraws. The platform had lost its USD ramps due to the US SEC lawsuit.
Relief for Binance.US as it lands a new banking ramp
Binance.US had abandoned its USD banking partners after the US SEC pressed charges against it. As a result, it was forced to suspend all USD withdraws and deposits; however, customers could still switch their USD balances to other currencies and withdraw them.
The platform is now operating as a crypto-only trading exchange despite being on a legal tuff with regulators in the country. It has announced a new partnership with MoonPay to allow its users to buy USD-pegged Tether USDT stablecoin that can be used on its platform for trading purposes.
It announced on August 22 that USDT is selected as the base asset for all transactions between it and MoonPay, creating a path for trading using USD.
Today, we're excited to introduce a new $USD on-ramp!
As an investor, it’s good to understand the crucial role venture funds play in the world of finance and innovation. This article delves into the realm of venture funds, exploring their definition, importance, and the profound impact they have on driving innovation and fostering economic growth.
Understanding Venture Funds
Venture funds, also known as venture capital funds, are investment vehicles that pool money from various sources, such as high-net-worth individuals, institutional investors, and corporations, to invest in early-stage and high-growth companies. These funds are managed by experienced venture capitalists who identify promising startups with high growth potential and provide them with funding in exchange for equity ownership.
Why Venture Funds Matter
Fueling Innovation: Venture funds play a pivotal role in nurturing innovation by providing crucial funding to startups that are often too risky for traditional lenders. This support allows entrepreneurs to develop groundbreaking technologies, products, and services.
Early-Stage Funding: Startups often face difficulty obtaining funding from traditional sources due to their unproven track record. Venture funds bridge this gap by injecting capital into early-stage companies, enabling them to bring their ideas to life.
Job Creation: The startups funded by venture capital often grow rapidly, leading to the creation of jobs and opportunities in various sectors. This job creation contributes to local and national economic development.
Risk Mitigation: Venture funds help diversify investors’ portfolios by allocating a portion of their capital to high-risk, high-reward ventures. This diversification strategy can help mitigate losses from other investments.
Expertise and Guidance: Beyond financial investment, venture capitalists provide valuable mentorship, industry expertise, and networking opportunities to startups, enhancing their chances of success.
Venture Fund Lifecycle
Fundraising: Venture funds raise capital from investors by showcasing their investment strategy, track record, and potential for high returns.
Deal Sourcing: Venture capitalists actively search for startups that align with their investment criteria and show promise for substantial growth.
Due Diligence: Extensive research is conducted on potential investment opportunities to assess their viability, market potential, and management team.
Investment: Funds are invested in selected startups in exchange for equity ownership, with the aim of supporting growth and expansion.
Value Addition: Venture capitalists provide strategic guidance, mentorship, and resources to help startups scale and succeed.
Exit Strategy: Venture funds aim to exit their investments through avenues such as initial public offerings (IPOs) or acquisitions, realizing returns on their investments.
Risks and Challenges
High Risk: Venture capital investments are inherently risky due to the uncertainty associated with startups’ success and market acceptance.
Liquidity Concerns: Investments in startups are illiquid and may take years to yield returns, potentially tying up capital for extended periods.
Market Volatility: Economic downturns can impact the success of startups and the ability of venture funds to exit their investments profitably.
Conclusion
Venture funds are the driving force behind innovation, transforming innovative ideas into successful businesses that contribute to economic growth and job creation. By providing much-needed capital, expertise, and guidance to startups, venture funds serve as catalysts for technological advancement and disruption. This understanding can guide investors, entrepreneurs, and policymakers in making informed decisions that foster a dynamic and prosperous innovation ecosystem.
Bitcoin’s hash difficulty has risen by 6% despite a market dip.
Bitcoin recently fell to 26K levels claiming over $1 billion in liquidations.
BTC price action is causing panic in the markets as traders are experiencing high liquidation ratios. However, Miners are still positive as bitcoin hash difficulty has risen 6% in the past 24 hours.
Market dip inconsequential as Bitcoin hash difficulty increases
Bitcoin price crashed by 10% last week, causing the whole market to move in tandem. As a result, record liquidations were seen in both shorts and longs. As a result, market sentiment has fallen back to fear from the neutral position that it was in before the pullback.
The Bitcoin hash difficulty rises that happened on August 22 now marks the 6th largest uptick of 2023 per figures from BTC.com. The rising Bitcoin hash difficulty rate shows miners are still not struggling with productivity in their activities, and the coin’s security is becoming stronger.
The upcoming readjustment is due to continue the rising Bitcoin hash difficulty taking it to over 56 trillion for the first time. Though it is impossible to calculate with 100% accuracy, the Bitcoin hash rate is already pushing the existing all-time highs of over 400 EH/S (exahashes per second.)
This rise in bitcoin hashrate is contributed by not only the incoming halving session but also a growth in the number of bitcoin miners. Bitcoin is expected to rise in price in the upcoming years as TradFi institutions flock to adopt it for their customers. As such, they are expected to be the major catalyst for mainstream crypto adoption.
As such, bitcoin mining is still seen as a worthwhile business since the network is also gaining new use cases via inscriptions and other Bitcoin standards. Data from Glassnode shows an increase of 0.08% in the number of BTC held by miners. They have a total of known 1.83M coins.
Authorities in the South Korean City of Cheongju are set to seize crypto from uncooperative taxpayers.
These authorities seek to seize crypto from thousands who have over $750 in crypto taxes to the government.
The South Korean City of Cheongju is set to seize crypto holdings from thousands of taxpayers who owe the government more than $750 in crypto taxes.
South Korean City of Cheongju doubles down on tax evasion among crypto enthusiasts
The City serves as the capital of the North Chungcheong province. Its authorities have indicated they intend to enforce a compliance norm among crypto users.
As such, it has requested seven South Korean crypto exchanges to inquire into the holdings of thousands of tax evaders, as a local news source reported on August 22. These authorities seek assistance from exchanges like Bithumb and Upbit to inquire into over 8K crypto users who owe over $750 each.
Following the inquiry, the administrators seek to repossess the crypto assets as they feel it has been a growing culture that citizens of the country are using crypto to evade tax payments. This process is set to enforce a culture of compliance among all citizens of the nations and block loopholes in tax losses.
It is not the first time South Korea has conducted tax-related crypto confiscations. In 2022 and 2021, the national government collected over $180 million worth of crypto assets from tax evaders.
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
Bonds are fixed-income securities issued by governments, municipalities, and corporations to raise capital. When you purchase a bond, you are essentially lending money to the issuer in exchange for periodic interest payments (coupon payments) and the return of the principal amount at the bond’s maturity.
Key Components of Bonds
Principal (Face Value): The initial amount you invest in a bond, which will be repaid at the bond’s maturity.
Coupon Rate: The annual interest rate paid by the issuer to bondholders, expressed as a percentage of the bond’s face value.
Maturity Date: The date on which the issuer repays the bond’s principal amount to the bondholder.
Yield: The effective annual rate of return earned by an investor, considering both coupon payments and changes in the bond’s price over time.
Types of Bonds
Government Bonds: Issued by national governments, these bonds are considered low-risk due to the backing of the government’s full faith and credit. Examples include U.S. Treasury bonds.
Municipal Bonds: Issued by local governments or municipalities to fund public projects, these bonds may offer tax advantages to investors.
Corporate Bonds: Issued by corporations to raise capital for various purposes. Corporate bonds can range from low-risk investment-grade bonds to higher-risk high-yield bonds (also known as junk bonds).
Zero-Coupon Bonds: These bonds do not pay periodic interest; instead, they are issued at a discount to their face value and provide a lump sum payment at maturity.
Bond Ratings
Credit rating agencies assign ratings to bonds based on their assessment of the issuer’s creditworthiness. Ratings range from “AAA” (highest quality) to “D” (in default). These ratings influence the interest rates offered on bonds and indicate their relative risk levels.
Factors Affecting Bond Prices
Interest Rates: Bond prices and interest rates have an inverse relationship. When interest rates rise, existing bond prices typically fall, and vice versa.
Maturity: Longer-maturity bonds are more sensitive to interest rate changes than shorter-maturity bonds.
Benefits of Bonds
Income Generation: Bonds provide a steady stream of income through coupon payments.
Diversification: Bonds offer diversification benefits in a balanced investment portfolio, reducing overall risk.
Preservation of Capital: High-quality bonds are generally considered less volatile than stocks, offering a level of capital preservation.
Risks Associated with Bonds
Interest Rate Risk: Changes in interest rates can impact bond prices and yields.
Credit Risk: The risk that the issuer may default on interest payments or fail to repay the principal at maturity.
Inflation Risk: Inflation can erode the purchasing power of fixed coupon payments over time.
Conclusion
Understanding the basics of bonds is essential for investors seeking to build a well-rounded and informed investment strategy. From the core components of bonds to the various types available and the factors affecting their prices, your commitment to providing verified and unbiased information ensures that your audience gains a clear understanding of this important financial instrument. By considering the risks and benefits, investors can make informed decisions that align with their financial goals and risk tolerance.
