- Facebook’s Libra Suffers as Paypal Pulls Out
Paypal Inc has officially pulled out of Facebook’s cryptocurrency project, Libra, amid rising regulatory scrutiny and opposition.
Paypal was one of the companies that invested at least $10 million in the project when it was unveiled earlier this year, however, none of them anticipated the level of opposition and scrutiny that trailed the announcement.
Regulators across the world are worried about trusting Facebook with financial details of their citizens following its failure to protect users’ data in the past and its reluctant to even report the stolen data.
The 29 companies that initially signed up for the project are now sceptical, and with Paypal out, others may start pulling out to limit regulatory scrutiny and negative impact on their overall branding.
A move that could hurt the entire project as Facebook would lose more bargaining power and its ability to convince regulators that the project is a collective effort and not a move to monopolise global financial service.
In a statement released by Paypal, the company decided to focus on advancing its existing mission and business priorities.
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations,” PayPal said in an emailed statement to TechCrunch. “We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future. Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”
Earlier this week, WSJ reported that Mastercard, Visa and other companies may also pull out ahead of the scheduled meeting to elect the first board of directors for the project this month in Geneva.
Facebook, however, responded to the Paypal announcement: “It requires a certain boldness and fortitude to take on an endeavor as ambitious as Libra – a generational opportunity to get things right and improve financial inclusion,” said a spokesperson. “The journey will be long and challenging. The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later.”
The only CEO who has spoken regarding the project, Al Kelly, Visa, said: “It’s important to understand the facts here and not any of us get out ahead of ourselves,” Kelly said in the company’s most recent earnings call. “So we have signed a nonbinding letter of intent to join Libra. We’re one of – I think it’s 27 companies that have expressed that interest. So no one has yet officially joined. We’re in discussions and our ultimate decision to join will be determined by a number of factors, including obviously the ability of the association to satisfy all the requisite regulatory requirements… It’s really, really early days and there’s just a tremendous amount to be finalized. But obviously, given that we’ve expressed interest, we actually believe we could be additive and helpful in the association.”
Bitcoin Price to Hit $397,000 by 2030, Says Report
Bitcoin Price Predicts to Hit $397,000 Per Coin by 2030
A recent report by the Crypto Research Group has shown how Bitcoin, the world’s most dominant crypto coin can attain $397,000 per coin price level in the next 10 years.
In the June 2020 edition of the report, researchers said Bitcoin and other altcoins like Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Stellar (XLM) — would get a huge boost before 2025. This, they said will continue for at least five years given that Bitcoin is still at a very early stage of adoption.
“We believe that Bitcoin is still at the very start of its adoption curve,” the report states. “The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”
This means Bitcoin price will increase by more than 4,000 percent from the current level, while ETH, LTC, and BCH are also expected to do roughly 1,600 percent, 5,000 percent, and 5,400 percent growth in the next ten years, respectively.
However, XLM is expected to see the largest increase of more than 11,000 percent increase from $0.07 to $7.81 per coin.
The Liechtenstein-based research group said “If cryptocurrencies gain adoption for long-term hoarding purposes or for short-term spending on speculation or coffees, the price of crypto assets will go up,” the Crypto Research Report stated.
“High velocity on-chain and low velocity off-chain suggests that crypto assets are becoming increasingly used for speculation and not for store of value.”
Bitcoin Continues to Drop, Hits $8,977 Per Coin
Price of Bitcoin Continues to Drop on Thursday
Bitcoin continues to drop on Thursday as the world’s most dominant cryptocurrency set a new low for the week after hitting $8,977 low following surged in supplies from miners.
A report that supplies of the coin rose in June due to the increase in miners’ conversion rate weighed on the digital coin bullish breakout expected above $10,000 resistance level.
Price of the coin declined from $9,772 attained on Tuesday to $9,271 on Wednesday before plunging further to $9,163 per coin on Thursday morning at 1:56 p.m Nigerian time.
This was despite Tuesday’s optimism that Paypal Inc was about to jump into the crypto exchange business.
The decline started after a report by CryptoQuant, a on-chain monitoring resource, showed HaoBTC and Poolin miners moved over 7,000 Bitcoins as anticipated bullish run to have stalled due to lack of new capital.
The reports created panic and broad-based selloff among retail traders, pushing prices below $9000 for the first time this week.
Bitcoin Drops on Wednesday as Miners Outflow Surges
Price of a Unit Bitcoin Drops on Wednesday as Supply Surges
Bitcoin, the world’s cryptocurrency frontrunner, declined from the $9,772 it traded per coin on Tuesday morning to $9,202 on Wednesday following reports that Bitcoin supply is on the rise.
The dominant coin retraced slightly to $9,368 per coin at around 2:08 p.m Nigerian time as shown below.
This may not be unconnected with the Bitcoin Halving highlighted by Investors King in May.
Investors King posited that due to the huge cost of running mining operations and the reduction in block reward, miners are likely to withdraw more often henceforth to meet the difference in operating cost created by the third halving.
Experts now expect sellers to pressure price below the current level as the coin fundamental gradually changed from positive sentiment to break $10,519 resistant level to bearish.
“There has been a big spike in miner outflows overnight, I’m expecting a whole lot of selling, starting real soon,” stated Cole Garner, a popular cryptocurrency analyst.
As predicted last week, a break below $8,781 support level would turn outlook bearish and open up $8,231 support. However, Investors King needs a break of $10,519 resistance level to confirm the bullish continuation.
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