When bitcoins hit the market, cryptocurrencies were just hitting the headlines. With the prices surging since November last year, the sudden drop in the cryptocurrency market (primarily bitcoin) one question comes to mind: has the cryptocurrency bubble finally burst?
Since the sudden rise, bitcoin prices have been on a steady decline since the end of the last year. Plummeting more than 40 percent, leading some investors to believe reality has finally caught up with the bitcoin bubble. The dip in the price started a couple of months ago when the Securities and Exchange Commission (SEC) announced crypto exchanges will have to obey the same rules as everyone else.
To make matters worse, Coinrail, South Korean cryptocurrency, said it was hacked over the weekend. This hack prompted an extended sale off to Bitcoin at an all time low valuation. Clearly, other cryptocurrencies like bitcoin are suffering. People are still reeling from the fact that Tether (another cryptocurrency,) may have manipulated the market in its favour.
Bitfinex was hit by the subpoena a month ago although the news did not reach investors until this week, which could have prompted the mass sell off. Tether is fixed to the US dollar, so $ 1 buys one Tether token. Investors now fear that Tether Limited does not have the reserves of USD needed to support its $2.17billion market cap and that Tether has flooded the market without being propped up by the dollar at all.
Mati Greenspan, a market analyst with eToro told Business Insider: “The claim is — and the claim has been growing lately — that they’re not holding those reserves. Combined, all cryptocurrencies are having a tough time surviving in the market. “Our take on this is that the new investors in the space don’t have enough time to analyze what’s happening,” London Block Exchange analysts said in a report.
The top 10 coins are down anywhere from 10% (Litecoin) to 20% (Moneoro.) Trading at around $8,800, Bitcoin is down more than 12% for the day.
Binny Bansal Sells ₹531 Crore Worth Flipkart Shares To Walmart
Binny Bansal, an Indian billionaire, entrepreneur and co founder of the e-commerce website Flipkart, sold $ 76.4 million worth of his shares in Flipkart to Walmart’s Luxembourg entity FIT Holdings SARL.
Binny Bansal, along with his partner Sachin Bansal, co founded the Flipkart and served as its Chief Executive Officer until January 2016.
Walmart, a multinational retail corporation, bought Flipkart in 2018 and back then, Bansal sold a small portion of his shares and held 3.85 % of stake.
Now, according to the documents filed by Flipkart with the regulators, Binny Bansal transferred 539,912 equity shares to FIT Holdings SARL. These shares are valued to be $ 76.4 million (approximately Rs. 531 crores.) This latest deal left him with only 3.52 % stake in Flipkart.
Vivek Durai, the founder of Paper.vc, a business intelligence platform, said, “With this transfer, Binny Bansal has monetised a small portion of his shareholdings. He had sold 1,122,433 shares for about $ 159 million during the Walmart takeover.”
According to his contract with Walmart, Binny Bansal is entitled to sell more than half of his shares to Walmart by August 2020 and he could gain around $ 400 million from this transaction.
Bansal, who is mostly based in Singapore, is now an investor in India’s startup ecosystem and is also the co founder of xto10X Technologies, which was launched last year.
In December 2018, Binny Bansal invested a sprawling $ 25 million dollars in the online insurance startup Acko. He also invested in several AI and healthtech startups.
Facebook Reveals Details Of Its Cryptocurrency Libra
On the 18th of June, Facebook revealed details of its brand new cryptocurrency called Libra. An alternative to cash, this cryptocoin can be used to buy things or send money to people with close to no fees. The cryptocurrency is going to be launched by an association called The Libra Association, which consists of a group of companies interested in getting Libra out into the world.
You can use Libra to buy or cash out your Libra at local stores like grocery stores and through third party wallet apps. To make using Libra an easier task, Facebook owned Calibra Wallet will be built into WhatsApp and Messenger, thereby simplifying transaction processes. Although certain countries have banned the use of cryptocurrencies, Facebook is trying to break new ground with the launch of Libra.
While Facebook is launching Libra, the social media giant is not going to be in complete control of the cryptocoin. The coin will be controlled by a consortium consisting of its founding members, Visa, Uber and Andreessen Horowitz. The three companies have invested at least $ 10 million each into the creation of this cryptocurrency.
Customers interested in holding or transferring the newly acquired token will be given multiple options to do what they wish. To further simplify matters, Facebook will let customers access transactions through this cryptocurrency via a special app designed for iOS and Android.
To protect the identity of its users while making transactions through the new app, Facebook won’t require you to share personal details. “The advent of the internet and mobile broadband has empowered billions of people globally to have access to the world’s knowledge and information, high fidelity communication, and a wide range of lowercost, more convenient services,” the Libra Association said in a paper announcing the cryptocurrency.
Libra will be made available to the world during the first half of 2020. As of now, Facebook is focusing on building relationships in international waters.
Stay tuned for more updates.
Facebook Invests In Indian Startup Meesho
On the 13th of June, social media giant Facebook announced, it invested an undisclosed amount in Indian startup Meesho.
A Bengaluru based startup, Meesho works with resellers and emerging brands using social media. This is the first time Facebook invested in a startup based in India. Through this investment, Facebook aims to increase its commitment to the Country’s vibrant internet ecosystem.
“Facebook is an ally for India’s economic growth and social development. We are excited about India and its rapidly rising Internet ecosystem. With this investment in Meesho, we want to fuel a business model that can result in rapid job creation and the rise of a female entrepreneurial class in India,” Ajit Mohan, the Managing Director of Facebook India, said in a statement.
It was two primary factors which made Facebook invest in Meesho. The first reason was how the startup is growing outside the Tier II and III cities, where new users are present. The second reason is, Meesho has a larger user base, 80 % of which are women.
So far, Meesho has raised $ 50 million from a Series C funding round in November last year. According to industry reports, the startup helps people using its service earn close to Rs. 25,000 every month! With WhatsApp playing a crucial role in the app’s growth, it comes as an added blessing that Facebook invested in this particular startup.
Through investments like these, Facebook is capitalizing on the social media boom happening in India.
Stay tuned for more updates.
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