Mainframe’s latest Blockchain protocol acquisition to enable DeFi Bond System

The latest blockchain protocol from Mainframe is all set to create waves in the cryptocurrency market. It has recently acquired Sablier for operating in the real-time finance business. The money streaming technology of Sablier will be used to bring in innovations into this sector. The Mainframe is planning a fixed-rate lending protocol that will attract more users into this market. This will create tokenized debt markets that will entice users to invest more money into the fixed income protocol that acts like digital bonds. Hence with the help of this modern technology option, the investors and other parties will be at a huge benefit. As per the experts, this will pave a new way in the world of investment. 

Crypto backed loans:

The crypto-backed loans will usually require less collateral and borrowers will benefit a lot with such developments. In this way, borrowers will be able to improve their purchasing power by offloading their debt investments. The lenders also benefit a lot as they will be buying the tokenized debts at a discount. They will redeem them for the face value after the maturity of the contract. This is a win-win situation for both borrowers and lenders.

If common users do not want to be lenders or borrowers in the system, they can still benefit by acting as guarantors in the protocol. They will pool assets and offer collateral wherever it is required and protect the system. In return, they can earn from the fees and make good use of their assets.

Support to the economy:

Market experts say that keeping the debt market up and running all the time is essential to sustain the economy. However, the requirement of too much collateral can actually stop the flow of money in the debt market in most cases. In that situation, Mainframe is the best option as this allows lenders and borrowers to move to the new protocol and improve the circulation of money within the economy that can help many segments in the market.

Such moves will bring more people into the cryptocurrency market, and they will also invest more money as it will be backed by some guarantee. The fixed returns scheme is yet another game-changer in this industry. When investors realize that they can get better returns in this market, they will feel more comfortable to invest money for a long duration. This can improve the demand for such investments soon.

PlexCoin faces new fraud charges from Ohio Grand Jury

In the past some months, the world of finance has to bear some jolts, and one more such event is noted again. As per the sources from the market, one more firm is penalized by law under the charges of forgery.

PlexCoin organizers have been indicted by a grand jury in Ohio on fraudulent charges. The founder of PlexCoin, Dominic Lacroix, along with other officials Yan Ouellet and Sabrina Paradis Royer are charged with inflating returns of the firm in order to attract investors.

PlexCoin outed two years ago

The cryptocurrency faced problems two years back when the SEC had removed them based on fraudulent charges. They were charged with violating securities law during the initial coin offering process. According to the SEC, the founder, along with other officials, violated the antifraud provisions and registration provisions.

SEC settlement with PlexCoin last year

However, they reached a settlement last year after PlexCoin promoters agreed to pay $7 million in fines. They claimed that the promoters had raised close to $8.2 million during the ICO process, and they had agreed to pay about 55 percent of the funds.

Such things are not new with cryptocurrencies, and this is the reason why most of them do not have proper valuation among the general public. Instances like this have raised a lot of concerns about regulatory norms with regard to cryptocurrencies across the world. Most countries have stringent norms for such digital assets, and they are still not used by many people in the public domain.

However, the crypto industry is also aiming towards getting regulatory approvals in recent years, and they want to come into mainstream financial markets by way of listing in popular exchanges. Many of them are planning IPOs this year, and if the trend is positive for the initial attempts, many more companies will follow the same method shortly.

This is a good trend as the crypto industry badly needs some regulation, and the common public should be aware of what is happening with the promoters. This will give them confidence about their investments, and the crypto industry can attract millions of new investors in this manner. Companies such as PlexCoin may come and go, but reputed blockchain-based currencies will make new attempts to win public confidence. The near future will see many new entrants into the market, and investors have to be careful about choosing such options.

Is Bitcoin Price Ready for a Big Breakout Next Week?

The price of Bitcoin is constantly rising. It was steady at $9000 after that a rally of $9,600 has started. The price of one Bitcoin has been anticipated by many analysts and financial experts. The only question that is bothering these experts is when does the Bitcoin doing to hit the $10,000 mark?

Since the much-awaited Bitcoin halving has occurred, the price is stuck. The exact price range is $8,800-9,000. But when it comes to an increment up to $10,000 mark, resistance can be seen. Since the market is narrowing down, it is yet to be seen when the Bitcoin is going to reach its $10,000 mark.

Bitcoin Prices Have Been At The Support Level

The Bitcoin price level was held at the support level in the past week. It happened due to the upward trend structure. After holding the value to the support level, the price of Bitcoin bounced back.

The 100-day and 200-day moving averages (MAs) are low. If these levels remain below a certain level, Bitcoin can hit its bull mark. According to the BTC/USDT 4-hour chart, Bitcoin is resting at a resistance level of $9,650. If this resistance to be believed, BTC will hike in the coming period.

The major Bitcoin move is yet to be seen but it is assumed that a staircase pattern will likely to happen. Once the Bitcoin breaks a high-level of $10,100, the price will be ready to increase.

Total Market Cap Of BTC

The market capitalization of Bitcoin is breaking out from $270 billion. Since it is also a factor that can clarify whether or not Bitcoin will move to the $10,000 mark, it can also be evaluated.

The total market value of BTC seems to be increasing, but the price of Bitcoin is stuck at a level. Another common reason for the hold of Bitcoin is the breakout of the altcoin. The price of ETH is increasing as well as the market cap of altcoins.

Bullish & Bearish Scenario

The bullish zone has shown resistance at $9,650 and $9,900 levels. If during the coming week, the price remains stuck below the $9,200 then the potential break will not happen. On the contrary, if the price surges above $9,650 then the breakout is confirmed.

The bearish scenario can be tested clearly. If a rejection is seen at the retest, the price can drop up to $9,300. The bearish scenario is mandatory to consider because it can clarify the further price breakout of Bitcoin.

South Korean Economist Warns New Tax Laws May Slow Down Crypto Market Growth

Worrying about the stringent tax laws, South Korean economists say that crypto’s growth can go down.

The South Korean government recently announced that they intend to tax cryptocurrencies at rates up to 20%. They were keen to legitimize the sector for a long time, but the current financial crisis appeared as the perfect time for the step. Sung Tae-Yoon, a Korean Yonsei University economist, expressed his concerns and warned that this tax imposition might slow down the technology’s emerging market. This was according to the Korean Times report on June 21. 

The cryptocurrency market has been tax-exempt for a very long time in almost all the countries where the users exist. Although the market is very volatile and fast-growing, even experts have believed that accepting the various virtual currencies as recognized assets is subject to regulations, and the market is still nascent. 

Supporting this, Sung called the decision “premature” because taxing cryptocurrencies as capital gains are not viable when the technology is in its infant stages. Therefore, he believes that the step would prevent the market from flourishing in South Korea to a great extent. Adding to this, he said that cryptocurrencies couldn’t be considered as universal assets like traditional paper currencies in general.

However, on the other hand, opposition economists from the Korean University, like Kim Jin-ill, strongly believe that the regulation is very essential even if the growth of the technology is hampered. They think that although taxation will hamper short-term growth, it will control many frauds and financial scams in the country. Some active economists are of the view that these tax impositions are due to the financial uncertainties caused by the COVID-19 Pandemic.

Some also believe that the Korean government has further plans to tax various other commodities after the digital currencies. Hong Nam-Ki, the Korean finance minister, said that the government would be reforming the taxation system by introducing new kinds of taxes, like the digital tax on some IT companies like Amazon and Google, for providing their IT services in South Korea.

Kim also said that the steps could block the short-term growth of several markets, but it is currently essential to regulate them. To this, he added that these are the most suitable ways to bring the current state of the financial crisis in control.

Giving an example, he discussed a failure involving commercial banks’ mis-selling of derivative-linked funds in the previous year, which clearly shows how important these regulations are in the financial industry.

The decision recognizes crypto as assets or goods instead of an actual currency. This is the reason that the decision is still in progress. However, chances prevail that the financial authorities of South Korea will follow the footsteps of the world’s leading financial powerhouses like Japan and the US.

The USA recognizes digital cryptocurrencies like Bitcoin as financial assets and imposes taxes on the revenue generated from its transactions. Similarly, Japanese financial authorities have also applied a tax rate of 55% on transactions that involve revenues from cryptocurrencies.