Tag : capitalization

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Stellar Becomes 6th Largest Cryptocurrency by Market Cap

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We are seeing a resurgence of the world’s largest cryptocurrency, Bitcoin with a sense of vigor we saw back in its hay day. With the price at the time of writing at almost $7800 per Bitcoin unit, it seems well poised to break the $8000 mark soon. It is not good news for just Bitcoin however with Stellar performing well to see a surge of almost 30 percent in its value over the past seven days.
This move by Stellar, reputedly the younger brother of Ripple, see itself move past Litecoin as the 6th largest cryptocurrency in the world based on the market cap. Stellar now enjoys a solid place on the sixth spot among the cryptocurrencies with a market capitalization worth $5.4 billion which is comparatively much larger than Litecoin’s $4.8 billion.
There are no bitter feelings on behalf of Litecoin for Stellar as the creator of Litecoin took to twitter to congratulate Stellar on surpassing Litecoin’s market capitalization. That being said, he did continue to say that it does not make sense trying to compare the market caps of Litecoin and Stellar because of the inflated market cap of Stellar.
He believes that the metrics to decide the ranks of different cryptocurrencies is not exactly accurate. It does not reflect on decentralization nor how the market capitalization came about. He feels that cryptocurrencies of the likes of Ripple and Stellar should not even be categorized in the same rankings as mineable and proof of work cryptocurrencies like Bitcoin and Litecoin.
In the alternative rankings that Lee posted for the mineable proof of work cryptocurrencies, Bitcoin retains a top position, Ethereum comes in second, Bitcoin Cash comes in at third and according to the figures that he posted, Litecoin comes in at the fourth position.
Of course, the market capitalization metrics have always been a fickle thing in the world of cryptocurrencies. The rankings by Coinmarketcap.com is based on the same market capitalization metrics and not on any other factor by default.
When you look at the history of cryptocurrencies, there was one that shot up really fast among the rankings only to crash and burn after it was revealed to be little more than a pyramid scheme. We’re talking about Bitconnect Coin.
That being said, Stellar cannot be considered the same as Bitconnect Coin as it has been making major moves in recent times. The likes of receiving certification for its platform and for the native cryptocurrency units Lumens (XLM) from the Shariyah Review Bureau are proving that Stellar is definitely something that’s here to stay.

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G20 Cryptocurrency Guidelines Highlighted Before Summit

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The G20 Summit is an international forum that brings together all the leaders of major economies from all over the world to one platform in a bid for more prosperity moving forward. Cumulatively, the organization has the aim to make the kind of policies that will help the global economy.

March of 2018 saw the G20 leaders meet in Buenos Aires in a summit which saw discourse on topics like the growing importance of cryptocurrencies and other digital assets in the global economic system. The Financial Stability Board, which is the organization that coordinates and monitors all the regulatory proceedings in the world determined that cryptocurrencies at the time do not pose any threats to the stability of the global economic stability.

The thing is that there was not even a snippet of regulatory actions being discussed at the G20 in March. Instead of offering what regulatory measures they intended, the leaders made it known that meaningful regulatory guidelines will be there for July and with a few days to go, the Financial Stability Board has issued guidelines for the regulation and monitoring of cryptocurrencies.

Framework for Monitoring Cryptocurrencies

According to their report, they did say that cryptocurrencies currently do not pose a threat to the stability of the global economy right now. That being said, their rapid proliferation has to be kept in check, especially the ways in which the cryptocurrency world can make an impact on the long-standing economic structure of the world.

With their issuance of the framework, they want to track any and all financial stability concerns that may come up in a timely manner. Keeping that in mind, the FSB will be monitoring a lot of critical data including:

  • Volatility comparators
  • Confidence effects
  • Payments and settlements
  • Basic market statistics
  • Market capitalization
  • Institutional exposure

Other than that, the FSB also plans to monitor the incidents of fraud in the cryptocurrency market and what impacts it can have on the cryptocurrency world.

Of course, outlining the framework for their monitoring and regulatory oversight is one thing and actually being able to do it is another. It will be quite the challenge for them to take on. The FSB understands the fact that the actual monitoring is going to be much tougher:

“Given that the proposed monitoring metrics are mainly based on public data, it should be stressed that the quality of the underlying data can vary, and might not always be satisfactory.”

These recommendations by the FSB were sent to the participants of the G20 for their consideration. The summit which is soon to take place will be able to provide a more detailed understanding of how each of the participating nations respond to these guidelines and how they plant to implement them.