Skip to content Skip to sidebar Skip to footer

Leading cryptocurrency platform Binance recently rolled out zero-fee Tezos [XTZ] staking. While the news is a great one for users, the same cannot be said for the cryptocurrency industry as a whole. 

Rewards to Be Calculated Daily, Distributed Monthly

Staking is a relatively new method of earning cryptocurrency rewards. Users don’t have to do much – they simply have to hold funds in a cryptocurrency wallet to support the operations of a blockchain network. In return for doing this, users get rewarded.

Per Binance’s official announcement on its support for Tezos staking, the platform will begin its support for the program from the 4th of December 2019. The platform will use live snapshots to calculate XTZ rewards on a daily basis, and it will then distribute these rewards on a monthly basis. The first reward distribution will be done before 20th January 2020. All reward distributions will be completed before the 20th of each month.

The staking rewards will be calculated in the following manner –

XTZ generated by each user = Total XTZ staking rewards received by Binance * User XTZ holdings ratio.

Binance already supports staking for NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VEN/VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), & Stratis (STRAT).

Good for Users; Not-so-good For the Industry

The move, while it works in the benefit for users, is not good news for staking startups in the crypto industry. According to crypto researcher Larry Cermak, a lot of the staking startups will have to shut down their businesses when major exchanges like Binance start rolling out zero fee taking or close to zero fee staking models, because the startups will not be able to compete with them.

Also, Cermak feels that move is aimed at increasing the number of users on the Binance platform. He says that exchanges are ready to bear the costs of such programs to attract new customers. Coinbase Earn is another program that has been created with a similar intent according to Cermak. In Coinbase Earn too, users will be able to earn crypto by staking their funds, and the program has already added support for XTZ.

For platforms like Binance, which have other revenue streams like trading fees, offering zero-fee staking is easy as they can bear its costs. However, for startups that are focusing specifically on staking and are dependent on it for revenue, Binance’s initiative may kill them all.

At the time of its launch, the program had also faced criticism for being against the spirit of decentralisation.

Summary

Binance Rolls Out Zero-Fee Tezos [XTZ] Staking; Here's Why It is Both Good and Bad

Article Name

Binance Rolls Out Zero-Fee Tezos [XTZ] Staking; Here’s Why It is Both Good and Bad

Description

Leading cryptocurrency platform Binance recently rolled out zero-fee Tezos [XTZ] staking. While the news is a great one for users, the same cannot be said for the cryptocurrency industry as a whole. 

Author

Vinnie Singh

Publisher Name

CoinGape

Publisher Logo

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram

Vinnie Singh , 2019-12-03 17:29:36 ,

Source link

Leave a comment

NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

Source link