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Cryptocurrency

Economics of Bitcoin ATM market could hinder wider adoption 

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ATM service provider, Bitcoin of America, had carved out a slice of the market but recently closed shop in the United States State of Connecticut due to a lack of proper licensing.

The Connecticut Department of Banking (DoB) issued a cease and desist order against the company, accusing it of operating unlicensed crypto ATMs in the state. But the allegations didn’t stop there; the firm was also accused of facilitating scams by allowing transactions related to fraudulent activities.

In response to the challenges, Bitcoin of America released a statement claiming it would immediately halt all of its operations in Connecticut. While the decision marked the end of the company’s presence in the state, it also underscored the regulatory hurdles faced by crypto ATM operators, particularly in the United States.

The closure also sent ripples across the crypto community, leading many industry observers to question the long-term efficacy and utility of these machines.

Connecticut closure explained

Due to the nascency of the cryptocurrency industry, marrying digital currencies with conventional financial structures — as in the case of crypto ATMs — requires intricate regulatory supervision. This is particularly true in Connecticut, where the DoB oversees ATMs under the Money Transmission Act. 

The act requires that any service involving the transfer of money, including the conversion of traditional currency to cryptocurrency, must secure a money transmitter license. 

On May 22, the Connecticut DoB claimed that Bitcoin of America had not secured the necessary license to operate Bitcoin ATMs in the state. It further stated that four Connecticut Bitcoin ATM users were scammed out of tens of thousands of dollars via Bitcoin of America’s kiosks. 

The DoB stated: “Bitcoin of America, following the consent order, compensated these consumers with a total of $86,000. After facing criminal charges, Bitcoin of America is in the process of ceasing its operations in Connecticut.”

In a separate incident in March, state officials in Ohio seized 52 Bitcoin of America ATMs, as authorities suspected scammers were using the kiosks.

Operating crypto ATMs is harder than it looks

Jason Grewal, chief legal officer for Web3 security firm Sys Labs, told that running a crypto ATM involves much more than just acquiring a license. 

Operators in the U.S. must adhere to Anti-Money Laundering (AML) rules set by the Financial Crimes Enforcement Network, comply with the Bank Secrecy Act’s Know Your Customer (KYC) norms, and conform to the Internal Revenue Service’s requirements for reporting crypto transactions.

In Grewal’s opinion, such complexities could play a significant role in the waning popularity of these machines. In March alone, a staggering 3,627 cryptocurrency ATMs went offline, marking the most significant monthly decrease in the history of crypto ATMs. He said:

“Considering the shifting popularity of crypto ATMs, various factors seem to be at play. For one, the transaction fees imposed by these machines often exceed those on online exchanges, posing a deterrent for heavy users. Additionally, the necessity to satisfy complex regulations and licensing requirements can be challenging and potentially overshadow the perceived advantages of in-person crypto transactions.”

Further tipping the scales away from crypto ATMs are alternatives like decentralized exchanges (DEXs) and decentralized finance (DeFi) platforms. 

Lower transaction costs, universal access, superior privacy and a broader range of supported cryptocurrencies make these projects increasingly compelling to many people. DeFi platforms also offer features such as staking, yield farming and borrowing — services typically absent from crypto ATMs.

Grewal believes that moving forward, crypto ATM operators will have to innovate and change to better serve the evolving needs of their consumers. 

Robert Quartly-Janeiro, chief strategy officer for cryptocurrency exchange Bitrue, told Primary companies currently dominate the crypto ATM market, something which needs to change for the market to grow and adoption to increase. 

Moreover, he believes that the physical location of crypto ATMs is also a major factor when it comes to engaging customers. He added:

“Ultimately, one of the key pillars for the mass adoption of crypto remains the ability to sell crypto for fiat currencies in-country. The landscape has changed slightly, so the need for crypto ATMs has changed economically, geographically, psychologically, as well as from an infrastructural standpoint.”

The economics of crypto ATMs

Most crypto ATMs in operation today run in collaboration with established companies like ChainBytes, LibertyX, CoinMe and others, which allow independent businesses to become “operators,” “partners,” or “hosts” for these machines. 

The return on investment depends on several factors, including the location of the business (e.g., commercial district, high-traffic area); the number of daily transactions; the average transaction size; the total expected revenue from transaction fees; and the marketing strategy to promote the crypto ATM in question.

According to crypto ATM firm Chainbytes, a single Bitcoin ATM can earn up to $3,000 monthly, with gross monthly revenues of $30,000.

Operating a crypto ATM presents several challenges as well. Regulatory complexities require operators to navigate often unclear laws, obtain necessary licenses, and comply with AML and KYC regulations. Security risks, both physical and digital, necessitate robust protective measures, adding to high operational costs that include machine maintenance and cash management. 

The inherent volatility of cryptocurrencies can also impact profitability, with significant value fluctuations potentially leading to financial losses. Operators must also maintain sufficient cryptocurrency and cash reserves to meet customer demand, as shortages could harm their reputation and business.

Who’s leading the global crypto ATM race?

Since the first crypto ATM debuted in a Vancouver coffee shop in 2013, the sector has evolved dramatically. Today, there are around 35,000 machines globally, transforming how people interact with digital currencies. 

The United States has the lion’s share of crypto ATMs globally. Source: Coin ATM Radar

The U.S. houses roughly 30,000 crypto ATMs, accounting for 86% of all such machines worldwide. 

Canada’s crypto ATM scene has also flourished over the last few years. As of Q1 2023, the country hosts 2,744 machines, while its European compatriot Spain boasts around 286 machines. 

Down under, Australia has also been making waves. After adding 99 ATMs in late 2022, it leapfrogged El Salvador and Poland to become the fourth-largest crypto ATM hub with around 473 kiosks.

The future of crypto ATMs

Despite the many hurdles impeding the growth of the crypto ATM market, the space is expected to grow significantly in the coming years. The market — valued at $71.9 million in 2021 — is projected to rise to $5.45 billion by 2030.

However, for the sector to thrive, it will be crucial for operating companies to obtain regulatory clarity. Physical and digital security measures must also be enhanced to protect the machines and the transactions they facilitate. This includes robust cybersecurity measures to prevent digital hacks and adequate physical security to deter theft attempts. 

Finally, efforts must be made to reduce the operational costs of running these machines. This could involve developing more cost-effective kiosks, optimizing cash management processes and exploring alternative business models. Thus, as we head into a future driven by crypto-enabled tech, it will be interesting to see how the future of the crypto ATM market continues to evolve and grow.



Cryptocurrency

Is Ripple (XRP) Gearing up for a Christmas Rally? (Analysts Weigh in)

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TL;DR

  • Ripple (XRP) fell from $2.50 to under $2 but recovered to $2.25, with analysts eyeing a substantial rally in the coming weeks.
  • XRP whales bought 120 million tokens over the past week, reducing supply and potentially setting the stage for a price pump.

Final Push for the Year?

Ripple’s XRP was among the leading cryptocurrencies that were the worst affected amid the latest market correction. Its price tumbled from over $2.50 on December 17 to less than $2 three days later. The bulls managed to recover some ground in the past few days, with XRP currently trading at approximately $2.25 (per CoinGecko’s data). Still, that represents a 10% decline on a weekly scale. 

XRP Price
XRP Price, Source: CoinGecko

Despite the fluctuations and the recent pullback, many analysts remain optimistic that XRP could experience a substantial rebound in the near future. Crypto Bitlord, an X user with almost 400,000 followers, thinks “the final pump for 2024 is loading.” The market observer predicted a price rally to as high as $12 next month, suggesting that “the rise starts now.”

JAVON MARKS was also among the bulls. They touched upon XRP’s 4-hour chart to envision the confirmation of a “Hidden Bullish Divergence” that could take the valuation to over 2.90 and a subsequent jump to a new all-time high. 

For their part, CrediBULL Crypto claimed that “the XRP/BTC chart below looks absolutely fantastic” and “the most bullish-looking chart in the entire space.” As such, the analyst said they will look to open a long position once again for another trade in the following days.

Whales on the Move

The latest correction of the crypto market, which started shortly after the Fed announced another interest rate cut but also hinted at a pause of the policy for next year, seems to have been welcomed by XRP whales.

On December 20, X user Ali Martinez revealed that such large investors have purchased around 80 million tokens in the span of three days. Earlier today (December 24), he claimed that whales have stacked up on an additional 40 million coins. 

Such actions reduce the circulating supply of XRP, which could be followed by a price rally (assuming demand stays the same or heads north). Massive whale purchases may also trigger excitement among smaller investors who could also hop on the bandwagon, thus creating further upward pressure on the price.

 

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Cryptocurrency

Veles Unveils Backtesting Solutions for Crypto Traders

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[PRESS RELEASE – Dubai, United Arab Emirates, December 24th, 2024]

Veles, a leader in algorithmic trading solutions, has introduced a sophisticated backtesting toolset tailored for cryptocurrency traders. These tools empower users to evaluate and refine strategies by leveraging advanced technology to uncover market inefficiencies and enhance trading outcomes.

  • Custom Strategy Configuration: For parameters to match specific trading goals.
  • Comprehensive Historical Data: To conduct tests using minute-level datasets.
  • Position Management: Optimization of entries and exits.
  • Insightful Analytics: In-depth reports for strategy optimization.
  • Advanced Indicators: To analyze market conditions, including volatility and volume.

Veles’ backtesting solutions offer traders the ability to optimize strategies while minimizing risks. The platform integrates with top cryptocurrency exchanges like Binance, Bybit, and OKX, ensuring seamless connectivity and comprehensive support for dynamic markets.

About Veles

Veles provides advanced tools for cryptocurrency trading automation. With a focus on enhancing efficiency and profitability, Veles equips traders with reliable solutions for navigating market complexities.

More details at veles.finance.

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Cryptocurrency

BYDFi Market Overview: UFD,HYPE and USUAL’s Growth, PENGU’s Stable US$1,800,000,000 Market Cap

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[PRESS RELEASE – Mahe, Seychelles, December 24th, 2024]

On December 24, 2024, the BYDFi crypto exchange officially launched new tokens, including PENGU, HYPE, UFD, and USUAL. These are different Memecoins and DeFi tokens, enriching the categories of assets on the platform and giving global users more investment opportunities.

UFD’s Surge, PENGU on Hot List with $1.8B Market Cap

UFD, or Unicorn Fart Dust, is a meme coin in the Solana ecosystem that has been growing with the tag of a “social experiment.” A 54-year-old gold and silver trader was inspired to create his own meme token, UFD, based on Fartcoin, which had a market cap of $500 million. The creation of UFD symbolizes the innovative trend of the cryptocurrency market as well as the openness of the industry towards investors cutting across all age groups.

From GMGN data, on December 19th, UFD market cap has already passed $230 million , the 24-hour price increase was at 434%, and a 24-hour trading volume of $145.4 million.

According to Onchain Lens, one address that bought UFD early on changed $700 into $1.8 million in less than 7 hours. According to Lookonchain, a trader bought 12.98 million UFD tokens for 0.4 SOL two days ago. During the price spike, the trader sold over 80,000 UFD tokens twice, netting $4,500 while holding 12.9 million tokens in their account.

PENGU is the official token created by the Pudgy Penguins project, which contains 8,888 unique cartoon penguin NFTs. Each NFT generates randomly assigned qualities through the use of up to 150 hand-drawn components. These penguins have up to five different features, such as distinctive backgrounds, body shapes, clothes, and accessories.

PENGU is launched on the Solana blockchain in December 2024 with a total of 88,888,888,888 tokens. The overall market cap has crossed $1.88 billion, and the 24-hour trading volume is $360 million, with 62.86 billion tokens in circulation. The project intends to propel Web3 innovation through the Abstract public blockchain and developer incubator, and it has the support of the robust NFT community of Pudgy Penguins. Abstract recently raised $11 million, majorly coming from Peter Thiel’s Founders Fund, and hence offers a lot of support towards developing the PENGU ecosystem.

On-Chain Speed and Stable Ecosystem: Dual Innovations of HYPE and USUAL

HYPE is the native token of the decentralized derivatives protocol Hyperliquid and is the core asset of the high-performance L1 platform. With a latency of less than one second and complete transparency in its order book, trading, and settlement, Hyperliquid focuses on totally on-chain operations. The Hyperliquid platform is a rising leader in the DeFi industry, with a total asset value of $2.173 billion, according to DefiLlama data.

HYPE’s price has increased in 1345% since it was launched from $2 to $28.91. The 24-hour trade volume for HYPE has now surpassed $15 billion, according to data by @HyperliquidX, which marks a new record.

USUAL is the native governance token of the Usual protocol. It aims to create a secure and efficient stablecoin ecosystem backed by real-world assets, or RWA. Among its core functions are:

  1. Governance: Transparency in decentralized governance and community leadership is ensured by allowing holders to take part in crucial protocol decisions like earnings distribution and collateral management.
  2. Yield: The users can benefit from the RWA investments of the protocol with yields on US Treasury bonds by staking USUAL.
  3. Stablecoin Ecosystem: supports the main products of the protocol, being USD0, a stablecoin, which RWA supports and USD0++, a variant of liquid staking, and holders can share revenue via management or staking.

It also ties the issuance of USUAL tokens to total value locked, where increases in TVL reduce the token supply, thus constituting a deflationary mechanism that can boost long-term value. As of December 18, USD0 minting was seen reaching a record-breaking 190 million units with the total supply rising beyond 1 billion units netting 136 million units. It can be established that the high level of capital attraction of the Usual procedure is by reaching the Treasury revenue of $5.89 million. The increase of USD0 and USD0++ will enhance TVL by raising USUAL’s scarcity and value appreciation. At the moment of writing, the token’s price is $1.39, up 34.2% over the previous day. At $838,695,117, the trade volume is more than it has been in the past.

Meanwhile, BYDFi has simultaneously launched additional tokens, including FUEL, VANA, SEND, and ARCSOL. Users can visit the BYDFi official website or the BYDFi app to stay updated on the latest market trends and detailed information about these tokens.

About BYDFi

Founded in 2020, BYDFi is considered among the top 10 best crypto exchanges around the world according to Forbes, and trusted by millions of users all over the world. It currently supports more than 600 tokens for spot trading, with options for leverage from 1x to 200x to suit every investment strategy. Besides, BYDFi has also simplified the procedure of buying cryptocurrencies by working with world-class payment service providers like Banxa, Transak,and Mercuryo, enabling its users to purchase coins at a low cost.

In the future, the upcoming “BYDFi Copy Trading” feature will automatically suggest the top traders according to the user’s risk tolerance and account assets. Users can easily activate the copy trading mode using only a tap and replicate professional traders’ strategies. BYDFi aims to provide a world-class crypto trading experience for its users.

Contact BYDFi

For inquiries and support, users can reach them via the following:

Twitter( X ) | LinkedIn | Facebook | Telegram | YouTube

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