An amended class action complaint filed against Nvidia Corp has accused the firm of violating the Securities Exchange Act by downplaying the extent to which its gaming revenues relied on GPU sales to cryptocurrency miners.
The complaint, filed May 14, claims that Nvidia issued deliberately misleading statements that understated more than $1 billion in GPU sales relating to crypto miners during 2017 and 2018. Claims estimate that sales to miners represented over half of the company’s total sales.
Nvidia was hit with a spate of lawsuits from investors after its stock price crashed nearly 30% after announcing that revenues would fall 7% during late 2018.
Nvidia accused of misrepresenting $1b in salesThe amended complaint asserts that the firm deceived “the market into believing that Nvidia’s dependence on cryptocurrency-related revenues was small” while falsely claiming “quarter after quarter, that the gaming segment’s sales growth resulted from strong organic demand from gamers.”
The filing cites a study that estimated Nvidia’s misrepresentations obscured $1.126 billion in sales to miners, however, notes that a separate report by RBC Capital Markets concluded $1.35 billion in sales had been obfuscated by the firm.
2017 drives surging demand for GPUsDuring 2017, Nvidia’s GeForce GPU became favored among cryptocurrency miners, driving enormous profits for the firm’s gaming division.
In May 2017, Nvidia also launched a chip specifically engineered for cryptocurrency mining, the Crypto SKU — for which sales would be recorded under a catch-all business segment. However, the Crypto SKU failed to catch on, with many miners continuing to purchase GeForce GPUs instead.
The plaintiffs argue that despite the surge in demand from crypto miners driving sales for GeForce units, Nvidia attributed the demand to gamers as its revenues contributed to the firm’s gaming division.
Crypto SKU sales underrepresented demand from minersInvestors also claim that Nvidia’s also asserted that its crypto revenues were small based on the floundering performance of its Crypto SKU — misleading the market as to its reliance on sales to crypto markets.
“Defendants refused to publicly acknowledge that NVIDIA's proliferating sales were the result of fickle cryptocurrency miners, lest investors discount the Company's stock to reflect the volatility of crypto-related demand,” the complaint reads.
Instead, Defendants opted for a strategy that would capitalize on miners' fervent demand for GeForce GPUs while falsely telling investors that the spike in GeForce sales came from gamers, not miners, and making it appear that NVIDIA's core Gaming business was immune from the volatility of the cryptocurrency markets.
The amended filing follows California federal judge Haywood Gilliam’s downsizing of the case in March.
While Judge Gilliam found that the investors had failed to demonstrate that Nvidia knowingly issued false statements, he found the plaintiff’s assertions to properly link the 30% drop in share price to Nvidia’s partial corrective disclosures.
An amended class action complaint filed against Nvidia Corp has accused the firm of violating the Securities Exchange Act by downplaying the extent to which its gaming revenues relied on GPU sales to cryptocurrency miners.
As part of a recent tweet calling on all novelists to message her with their questions on Bitcoin (BTC), CoinDesk journalist Leigh Cuen publicized a tweeted response from none other than beloved Harry Potter author J. K. Rowling.
“I don’t understand Bitcoin,” Rowling said, adding, “Please explain it to me.”
Dear J. K. Rowling:The first thing you need to understand is that Bitcoin is magic. It allows you to exchange money with anyone in the world instantly, cheaply and securely, without the need for any centralized, Goblin-based banking authority.
Chapter 1: The White Paper From No OneBitcoin was invented by a mysterious computer programmer named Satoshi Nakamoto — almost assuredly a pseudonym. In Bitcoin’s 10 year history, the identity of Bitcoin’s creator has never been unearthed. We can refer to him here as He-Who-Has-Not-Been-Named.
Chapter 2: The Self-Writing BookOwnership of each coin is confirmed and recorded instantly in a digital ledger called a Blockchain — similar to how the Quill of Acceptance records the name of each new potential Hogwarts student in the Book of Admittance. Except instead of recording magical births, we’re recording who does and doesn’t own a particular coin.
This ledger is public and allows anyone to see who has owned a given coin throughout its history. A good visual representation for this process is a checkout card in a library book.
Contrasting with Gringotts (as well as with muggle banks), Bitcoin has no set hours of operation. You can send your Bitcoin anywhere in the world — day or night, 365 days per year — and the recipient will receive it in a matter of seconds. It's also pretty darn secure, no dragons necessary.
Chapter 3: The Unconjurable CoinFollowing Gamp’s Law of Elemental Transfiguration, new money cannot be conjured from nothing. Bitcoin respects this particular law far better than any government-issued currency. Only 21 million coins will ever exist on the Bitcoin network, and nothing can ever change that. By capping the number of Bitcoin to this finite amount, scarcity bestows each coin with a certain level of intrinsic value.
It also protects Bitcoin from the woes of extreme hyperinflation seen in government-issued currencies.
Chapter 4: The Magical MineBitcoin transactions must be validated in order for them to be added to the Blockchain ledger. Anyone in the world is able to contribute to this mining process using computer processing power.
The first miner to confirm each new batch of transactions, called a block, receives a fresh issuance of brand new, never-before-spent Bitcoin as a reward. As a whole, this process would make a fine candidate for the Ludicrous Patents Office.
Chapter 5: The Secret KeyUsers store their Bitcoin in a digital account called a wallet. Each wallet is protected by a unique private key, sometimes recorded as a series of human-readable words. Similar to a passcode or spell, knowing the right combination of words allows anyone to access the coins stored in a particular wallet. On the other hand, losing this key means that its corresponding wallet can never be opened again. That is why it is important to keep your wallet's private key a secret, while also maintaining adequate backups in as many locations as possible. Seven is a great number — and you don't even have to kill anyone to make them.
Unlike sending bank wires, checks or other online payments, sending and receiving Bitcoin does not directly expose any party's private information. To receive Bitcoin, one simply shares their public wallet address — a string of letters and numbers — which, in and of itself, poses no hacking risk. Kind of like an email, but for money.
Chapter 6: The Faceless ExchangeBitcoin can be bought and sold using any number of online marketplaces called exchanges. Coins can be traded for nearly any global currency — save, perhaps, Galleons — at constantly fluctuating prices. They can also be traded for other Blockchain-based currencies.
You also do not need to buy a whole coin. You can buy any portion of a Bitcoin, divisible up to 100,000,000 individual pieces. For example, 0.01 BTC is currently valued at roughly $92 (or 72 Great BP).
Chapter 7: Unfogging the FutureBitcoin's 10-year history has seen our community transfigured in many different ways. Though the technology began as a way to allow people to securely send money online without the oversight of banks or governments, it is now so much more.
Blockchain is being used to create self-executing applications that, in some ways, think for themselves. Developers are utilizing the technology to craft unhackable voting platforms, impossibly huge file storage methods, provably fair betting systems (sure to stoke even Ludo Bagman's ire), and even authenticate and distribute art across every medium to individuals around the world.
We can't predict all the magical ways Bitcoin's underlying technology will impact our lives in the future. Divination is, after all, a woolly discipline. What we can say for certain is that Blockchain's strength is in redistributing power. It removes the need for governing bodies and returns the power to share knowledge, riches and even the control of individual privacy back to the people.
Benjamin Pirus contributed to this article.
Lamborghini, a famous Italian manufacturer of luxury sports cars, continues to utilize the Blockchain in its corporate operations. Among the latest technology developments, the well-known brand is applying blockchain to digitize its collectible stamps.
Lamborghini is launching its first collectible digital stamps, the “Automobili Lamborghini Collection.” Powered by blockchain technology, the new collection is a series of collectible digital stamps dedicated to the history of the world’s most iconic luxury brand cars.
The first stamp from the Automobili Lamborghini Collection is devoted to the Huracán EVO RWD Spyder, a new model unveiled in May 2020, the firm officially announced on May 14. The announcement comes shortly after Lamborghini restarted production on May 4, following a temporary suspension of company activities amid the COVID-19 pandemic.
Lamborghini partners with local DLT-powered collectible startupIn order to deliver its new collectible digital stamps, Lamborghini partnered with a local blockchain collectible startup known as Bitstamps. The first Huracán EVO RWD Spyder stamp is already available by downloading the Bitstamps.app on iOS. The stamp will be issued in a limited and numbered edition of 20,000 pieces.
By using blockchain technology, the popular car brand intends to ensure history and uniqueness of each stamp, which represents a “single” digital object, Lamborghini said. After a Bitstamps-powered digital Lamborghini stamp is purchased, it will be available for reselling, the firm elaborated, stating:
“The stamp can be purchased, collected, or resold exactly like a paper stamp. The collection works exactly the same way: you can admire it, check its progress, give stamps as a gift or resell them.”
As specified on Bitstamps.app, the price of the Huracán EVO RWD Spyder stamp accounts for 9.90 euro as of press time. It is not immediately clear what types of payment methods would be available to buy the stamp on the platform. Cointelegraph reached out to Lamborghini and Bitstamps to learn more details about the matter. This story will be updated should they respond.
Blockchain is increasingly used to authenticate collectiblesBlockchain technology has found implementations in digitizing artworks and sport-related collectibles, as well as collectible digital stamps. In June 2019, the Austrian Post also released a line of blockchain-certified collectible stamps. Apparently, the digital stamps by the Austrian Post became the first stamps in the world to be authenticated via blockchain technology.
Lamborghini’s blockchain-enabled digital stamp is not the company’s first development involving blockchain technology. Last year, Lamborghini deployed Salesforce Blockchain to authenticate heritage Lamborghini cars.
The community also cites the Lamborghini brand in the popular community-centric phrase, “When Lambo?”. Often referred to as one of the most used phrases in the crypto space (alongside “When Moon”), the phrase has become a symbol of the crypto boom promising users fast riches through cryptos like Bitcoin (BTC).
Payments and cryptocurrency platform, Crypto.com, announced a broad European launch of its MCO Visa cards. The cards will soon ship to 31 countries in the region, according to the company’s blog post, published May 15.
The company’s European presence now covers all 27 EU member states, as well as Switzerland, the UK, Iceland, and Norway. The firm claims to have “the most widely available crypto card in the world” as a result of this expansion. Prior to this, it had already been offering services in Asia and the US.
When asked how difficult it was to get the green light from regulators across the region, Crypto.com CEO, Kris Marszalek, told Cointelegraph that card issuing and distribution in Europe “is possible under a single EU licence, as long as it has been passported across all relevant jurisdictions”. He elaborated:
“Each EU member state must transpose AMLD5 in local legislation which reflects in slight differences of approach and interpretation, but the overall purpose of the Directive is well adhered to by all countries”
All of Crypto.com’s European cards are issued by German financial services provider, Wirecard, Marszalek continued:
“The classic startup model is to launch in partnership with reputable financial institutions, build a user base and infrastructure (team, technology, licenses) and subsequently go for vertical integration. We’re following the same playbook.”
Crypto.com’s CEO added that they are actively working on a number of new markets, and that the company’s ultimate goal is to have its card available globally.
Crypto card industry to get more adoption in 2020? The crypto debit card race has been intensifying since the start of 2020. Earlier this year, Coinbase became the first crypto company to be licensed as a principal partner of Visa. This means that it can now issue its own cards without middlemen.
In May, cryptocurrency Visa card platform, Swipe, announced a partnership with Samsung Pay, enabling its holders to manage crypto via Samsung smartphones and smartwatches.
OkEx chief strategy officer, Alysa Xu, called out crypto data site CoinMarketCap, or CMC, for its recent exchange ranking rationale, proclaiming the platform dead.
“Fairness and justice are the basis of all rankings,” Xu said in a May 15 post on Chinese microblogging site Weibo. “CMC is dead, and we mourn together tonight.”
CoinMarketCap recently changed its ranking metricsBinance recently rose to the top of CMC's crypto exchange rankings after the data site changed the rationale by which it composed its list. CMC now shows exchanges ranked in order of web traffic, instead of liquidity or volume. Binance acquired CMC about six weeks ago, paying several hundred million dollars for the platform.
In November 2019, Carylyne Chan, CMC's chief strategy officer and acting CEO at the time, said she did not approve of ranking exchanges based on web traffic.
Binance CEO, Changpeng Zhao, mentioned the updated metric in a May 14 tweet, explaining:
This ranking is currently heavily biased towards web traffic, not 100% accurate, but better than before. Will continue to iterate.”Xu says other exchange metrics take priority As part of her statement against CMC's recent changes, Xu labeled security, “custody of hundreds of billions of user assets,” and significant responsibility as priority when it comes to exchange rankings. Liquidity comes as the second most important aspect, along with transaction scale. She also mentioned customer experience, services, and the platforms themselves, in various capacities.
“In the era of mobile internet in 2020, ranking with web parameters the list is either ignorant or shameless,” Xu said of CMC's new format.
Cointelegraph reached out to OKEx and Binance for comment, but received no response as of press time. This article will be updated accordingly upon receipt of a response.
Scammers are streaming Michael Bloomberg speeches on YouTube, claiming that the former presidential candidate is giving away free Bitcoin (BTC).
Michael Bloomberg BTC GiveawayMay 14, there were at least two such incidents with an apparent combined audience of almost 60,000. The scammers asked viewers to send between 0.1 BTC and 250 BTC to the video’s Bitcoin address, promising to return double their value. The channel alleged that Michael Bloomberg was facilitating crypto adoption through this mechanism. All related videos have since been removed by YouTube.
Screenshots Of YouTube Streams. Source: Cointelegraph.
According to the information from WHOis.net, a domain associated with the scam was registered on May 14 2020 — apparently, through a Russian registrar.
Screenshot of bloombergbtc.net domain registration. Source: WHOis.net
Scammers earned 1 BTC?The Bitcoin address that the hackers provided received six transactions between May 14 and 15. The transactions totaled 0.92355084 BTC, or approximately $8,800. It is not clear if these funds came from victims, or if the scammers sent their own coins to the address to make it look more legitimate. Obviously, no Bitcoins have been sent back from this address.
Scammers’ Bitcoin address. Source: blockchain.com
Cointelgraph reached out to Chainalysis to see if they could provide additional information on these transactions. A company representative told us that the Bitcoins likely came from victims. They continued:
“We took a closer look and it looks like most of the other deposit addresses originated from exchanges, so our best guess is that these deposits are from victims.”
Furthermore, Chainlanysis will attribute this address to scam artist activities in their database. This will make it more difficult for the scammers to cash out their ill-gotten gains.
Cryptocurrency crime is a multi-billion dollar industry. Social media platforms do not always appear to be well equipped to prevent it or react quickly when scams like this appear.
A month after the first halving, Bitcoin (BTC) moved up by 7% but following the second halving, the price slipped by 10% in a month. This suggests that if history were to repeat itself, the top-ranked cryptocurrency on CoinMarketCap will remain volatile but a large move in either direction is unlikely in the first month. However, the derivatives markets could be giving a signal that this time is different.
This week CME Bitcoin options open interest increased to about $142 million, an increase of over 1000% since the end of April, according to data from Skew. This shows that the options traders are expecting a sharp move in price within the next few days.
There are approximately $661.7 million worth of long positions open, compared to $252 million in short positions, on the three major futures exchanges. This suggests that the futures traders are holding on to their long positions as they are confident that Bitcoin could soon break above the psychological barrier of $10,000.
Daily cryptocurrency market performance. Source: Coin360
Murmurs of negative interest rates have also increased in the U.S. and a report by Stack Funds suggests that if negative rates become a reality, institutional investors would be forced to look for alternative assets to generate higher returns.
With Bitcoin outperforming the U.S. stock markets by a wide margin and doubling gold’s gains year-to-date, institutional interest is likely to rise.
The fundamentals of Bitcoin continue to paint a bullish picture and the derivatives traders are also expecting a trend defining move to start soon.
Let’s study the charts to spot the critical levels that could indicate the start of a new trend in major cryptocurrencies.
BTC/USDBitcoin (BTC) rallied sharply in the past three days and reached a high of $9,941.68 on May 14. However, the bears are unwilling to allow the bulls to have a field day. Currently there is stiff resistance near $10,000.
BTC–USD daily chart. Source: Tradingview
Nevertheless, the bulls continue to buy the dips, which is a positive sign. Both moving averages are sloping up and the relative strength index is above 60 level, which suggests that the buyers have the upper hand.
If the BTC/USD pair can consolidate between $9,200-$10,000 levels for a few days, it will increase the possibility of a breakout and rally towards the resistance line of the symmetrical triangle around $10,600.
This bullish view will be invalidated if the pair turns down and breaks below $9,200. That can drag the pair to the 20-day exponential moving average ($8,851) and below it to the uptrend line. A break below this support will be the first indication that bulls are losing their grip. A possible change in trend will be signaled on a break below $8,130.58.
Traders can keep an eye on the developing bearish divergence on the RSI, which is a negative sign.
ETH/USDEther (ETH) climbed above the 20-day EMA ($197) on May 13 and reached the downtrend line on May 14. Although the bears are attempting to defend the downtrend line, the bulls have not given up much ground.
ETH–USD daily chart. Source: Tradingview
If the 2nd-ranked cryptocurrency on CoinMarketCap bounces off the 20-day EMA and breaks above the downtrend line, a rally to $227.097 is possible. This could present a buying opportunity for traders.
However, if the ETH/USD pair breaks below the 20-day EMA and the support line of the ascending channel, a drop to $176.103 is likely. A break below this critical support can signal the start of a downtrend.
XRP/USDXRP bounced off the critical support at $0.17372 but hit a wall at the 20-day EMA ($0.20). This suggests that buying dries up at higher levels. If the price turns down from the current levels and breaks below the 50-day simple moving average, a drop to $0.17372 is likely.
XRP–USD daily chart. Source: Tradingview
Conversely, if the bulls propel the 3rd-ranked cryptocurrency on CoinMarketCap above the 20-day EMA, a move to the downtrend line is possible. This level might again act as a resistance but if crossed, a rally to $0.23612 is likely.
As both moving averages are flat and the RSI is close to 50 levels, this suggests a balance between the bulls and bears. Hence, traders can wait on the sidelines until the bulls indicate that they are back in command.
BCH/USDBitcoin Cash (BCH) is facing resistance at the 20-day EMA ($243). If the price turns down from this level, the bears will attempt to sink the altcoin back towards $200.
BCH–USD daily chart. Source: Tradingview
Conversely, a break above the 20-day EMA can drive the 5th-ranked cryptocurrency on CoinMarketCap to $280.47.
The flat moving averages and RSI close to the midpoint suggests a balance between supply and demand. The next trending move is likely to start only on a breakout of $280.47 or on a break below $200. Until then, the BCH/USD pair is likely to remain range-bound.
BSV/USDThe bounce in Bitcoin SV (BSV) has stalled close to the 20-day EMA ($196). Both moving averages are flat and the RSI is just below the midpoint, which suggests a balance between supply and demand. If the price turns down from the 20-day EMA, a retest of $170 will be on the cards.
BSV–USD daily chart. Source: Tradingview
Conversely, a break above the 20-day EMA can carry the 6th-ranked cryptocurrency on CoinMarketCap to $227.
The BSV/USD pair is in a well-defined range. Hence, the best place to initiate a trade is to buy near the support and sell near the resistance. Another possibility could open up after the pair breaks out of the range, as it will indicate the possible start of a new trending move. Until then, traders should trade with caution.
LTC/USDThe rebound off the critical support at $39 is facing resistance at the 20-day EMA ($44.42). This suggests that buying dries up at higher levels. With both moving averages flat and the RSI below the midpoint, Litecoin (LTC) is likely to consolidate for a few days.
LTC–USD daily chart. Source: Tradingview
If the 7th-ranked cryptocurrency on CoinMarketCap turns down from the current levels, a retest of $39 is possible. If the price bounces off this support once again, it could offer a buying opportunity.
On the upside, if the bulls can push the price above the 20-day EMA, a move to the downtrend line and then to $50.7864-$52.2803 zone is possible.
BNB/USDBinance Coin (BNB) has been range-bound between $18.1377-$13.65 for the past few days. The sharp bounce off the support of the range has carried the altcoin to $16.30 which is acting as a resistance.
BNB–USD daily chart. Source: Tradingview
This suggests that the bears are likely to mount a stiff resistance between $16.30 and the downtrend line. If the 8th-ranked crypto-asset on CoinMarketCap turns down from this level, a drop to $13.65 is possible.
Conversely, a break above the downtrend line will clear the path for a move to the resistance of the range at $18.1377. A breakout of the range will be a positive move as it will resume the up move towards $21.50.
EOS/USDEOS is attempting to break out of the downtrend line. If successful, an up move to $2.8319 is likely. This is an important level to watch out for because if the altcoin turns down from here, it will be at risk of forming the right shoulder of a bearish head and shoulders pattern.
EOS–USD daily chart. Source: Tradingview
This setup will complete on a breakdown and close (UTC time) below $2.3314. If that happens, it will be a huge negative because the H&S pattern has a target objective of $1.5524.
Both moving averages are flat and the RSI is close to the center, indicating a balance between supply and demand.
If the bulls can propel the 9th-ranked cryptocurrency on CoinMarketCap above $2.8319, a rally to $3.1104-$3.1802 resistance zone is possible. Above this zone, the EOS/USD pair is likely to pick up momentum.
XTZ/USDTezos (XTZ) is at a critical level as the price is getting squeezed between the 20-day EMA ($2.58) and the support line of the ascending channel. A breakout and close (UTC time) above the 20-day EMA is likely to resume the up move.
XTZ–USD daily chart. Source: Tradingview
The first target on the upside is the downtrend line and above it, the rally can extend to the $3.07369-$3.2712 resistance zone. Therefore, a break above the 20-day EMA can offer a buying opportunity to the traders.
Conversely, if the bears sink the 10th-ranked cryptocurrency on CoinMarketCap below the support line of the ascending channel, a retest of $2.24 is possible. A break below this level could start a downtrend.
XLM/USDStellar Lumens (XLM) remains in an uptrend but the bears have been defending the uptrend line for the past three days. However, the positive thing is that the bulls have not given up much ground and have kept the price above the 20-day EMA ($0.067).
XLM–USD daily chart. Source: Tradingview
Soon, the bulls are likely to make another attempt to drive the 11th-ranked cryptocurrency on CoinMarketCap above the uptrend line. If successful, the up move is likely to resume with the first target being $0.076994 and then $0.088311.
Conversely, if the XLM/USD pair turns down either from the downtrend line or from the current levels and breaks below the 20-day EMA, a retest of $0.060 is possible. A break below this level will signal a possible change in trend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Institution-facing liquidity aggregator, FalconX, has announced a $17 million fundraising round including participation from Coinbase Ventures, Accel, and a venture capital firm associated with FMR LLC — the parent company of Fidelity Investments.
FalconX will use the funds to scale its infrastructure, introduce new products, and expand its trade execution engine.
Institutional liquidity aggregator raises $17mFalconX trades as principal, offering institutions access to both lit pools — exchanges, and dark pools — including market makers, miners, and proprietary trading firms, through a single counterparty.
Speaking to Cointelegraph a FalconX representative stated that the firm uses “data science [to] derive fixed, time-guaranteed quotes through market or limit orders over highly dynamic exchange order books” spanning multiple liquidity pools.
The spokesperson added that data science is employed to “compensate for poor fill rates, high slippage, and unreliable infrastructure” to minimize the risk of slippage.
FalconX processes over $7B in volume in 10 monthsFalconX was founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy after they met at Harvard Business School during the same year.
After building and testing the platform from May 2018 through February 2019, FalconX was launched, and has attracted $7 billion volume since July 2019.
The spokesperson stated that FalconX has attracted more than 100 institutional clients worldwide, “including hedge funds, proprietary trading firms, payment gateways, over-the-counter trading desks, cryptocurrency miners, VC funds, and exchanges.”
The firm now operates offices in Malta, The United States, and Bengaluru, India.
FalconX avoids Indian market despite changing regulationsDespite having an office in Bengaluru, FalconX does not serve clients based in India.
In response to the Supreme Court’s reversal of the Reserve Bank of India’s ban on financial institutions providing banking services to firms operating with crypto in March, FalconX’s representative stated:
“We are glad to see the government taking an increasingly pro-innovation stance and see the market as an exciting growth opportunity.”
After talking about Hedera’s Consensus-as-a-Service model in the first part of Cointelegraph’s interview, Hedera CEO Mance Harmon mentioned one specific use case of enterprise blockchain to organize industry cooperation.
Like with public blockchains, enterprise-based solutions are a way of coordinating participants of an ecosystem who cannot rely on trusting each other.
When asked about specific examples of industries benefiting from blockchain, Harmon referred to one of their clients, the Coupon Bureau.
Blockchain-secured couponsThe Coupon Bureau is a non-profit organization that Harmon called “the heart of the coupon industry in the United States.” Through various other corporate associations and committees, it is backed by major U.S. retailers like Target and General Mills.
Harmon then explained that Coupon Bureau provides a central database for all entities participating in the system, be they retail stores or product manufacturers. He continued:
“Consumers, when they go to the store, they have a coupon, perhaps on their phone. […] They use it at the point of sale system. That transaction goes to the Hedera Consensus Service and it gets a consensus timestamp, and then flows from there back to the Coupon Bureau.”
The bureau then updates its registry with a consensus-backed entry to ensure that the coupon is never used again. This system has two main advantages, as Harmon explained.
The first one is for consumer analytics, where the digital coupon system allows producers to track which coupons — of the 250 billion issued annually in the U.S. — are actually being used.
But the second reason is given by the nature of the bureau, which unites many companies into a single entity, some of which may be competitors. The problem of trust becomes key, as Harmon said:
“The industry at large doesn't want to have to trust the Coupon Bureau not to defraud them.”
Why public blockchains are not ideal for enterpriseHedera Hashgraph’s consensus model is fairly centralized by cryptocurrency standards, as nodes in the network are managed by corporate entities. In that respect, it’s similar to existing governance mechanisms for industry consortiums.
In Harmon’s view, public companies will not embrace public blockchains where nobody can be made accountable. Enterprises are used to signing service-level agreements, which define specific quality standards. He added:
If you're serious about your application, you need somebody to call in the event the infrastructure doesn't work right. How do you do that with Ethereum? You can’t, not really.”
According to Harmon, Hedera’s model allows it to be “decentralized and trusted in a global public network,” while at the same time responding to the practical concerns of their clients.
Crypto venture capital firm and trading desk, Galaxy Digital Holdings, has been granted conditional approval to participate in the Toronto Stock Exchange’s TSX Sandbox.
Announced during April last year, TSX’s sandbox offers a testing ground for new policy development, and an initiative intended to facilitate support for listing applications “that may not generally satisfy the requirements and guidelines of TSX.”
Galaxy will graduate from the sandbox onto TSX after 12 months of trading without the occurrence of “a significant compliance issue.”
Galaxy Digital enters TSX SandboxGalaxy Digital founder and chief executive, Mike Novogratz, described its entrance into the sandbox as a “significant step in [its] evolution as a public company.”
The sandbox has exercised discretion in waiving the requirement of CAD 10 million (approximately $7.1 million) in treasury garnered through public raise — which Galaxy Digital did not meet.
“Our proposed graduation to the TSX comes as the company continues to make great strides in execution across all of our business lines,” said Galaxy Digital president, Christopher Ferraro.
“Our trading desk executed approximately $1 billion of total volume in the most recent quarter, including flows from significant new hedge fund counterparties moving into crypto, while our asset management business continues to see strong fund inflows to its Bitcoin Fund,” Ferraro added.
In September 2019, Canadian crypto mining firm, Hut 8, became the first company to be granted conditional approval for TSX graduation via the stock exchange’s sandbox.
Galaxy Digital to graduate from TSX VentureThe sandbox program will allow Galaxy Digital to graduate from TSX’s Ventures platform to the exchange’s most senior public market.
Galaxy Digital commenced trading on TSX Ventures at the start of August 2018, where it would commence trading at roughly $2.05 before shedding 65% over the rest of the year and tagging a low of $0.70.
Galaxy Digital recovered by 150% from late December 2018 through Q1 2019, before embarking on a 12-month slide down to a record low of $0.52 during March 2020. Bullish activity in the crypto markets has driven a 100% recovery over the past month — with Galaxy Digital currently trading for $1.05.