Cryptocurrency exchanges are taking notice of trading-fee war. Tagomi, which operates as a prime broker in the crypto space, has cut its fees by more than 50 percent to gain market share as competition piles into the crypto trading space.
The startup, however, keeps its multi-tiered fee structure, where traders get lower rate if their transactions reach a certain volume.
Fees for crypto traders is down to 0.1% or less per trade, which Tagomi claims it saves them $25 when they buy $10,000 worth of bitcoin through its platform. According to its updated fee schedule, the startup charges a flat fee of 10 basis points for trades smaller than $1 million, down to 0.08% for volumes ranging from 1 to 10 million.
Tagomi says the aggressive cuts offer some of the lowest levels in the industry, making other crypto exchanges to have room to cut. More specifically, the new rates are nearly 70 percent lower when compared what traders pay to the likes of Coinbase and Gemini.
Tagomi, which launched its electronic-trading service for crypto last year, is aggregating liquidity across multiple exchanges and executing trades based on a single unified order book. The broker also provides its partners with straight-through process and workflow when managing crypto portfolios and trading across many exchanges and other destinations.
Tagomi is trying to attract bigger volumes and increase liquidity on its platform as fee compression hits all crypto exchanges. According to its latest metrics, the New Jersey-based crypto prime broker handles less than $20 million in weekly crypto volumes, or about $1 billion per year.
Tagomi came on board for the institutions
While appears to be nearing the finish line in the traditional trading industry, a race-to-zero price competition is likely to happen in the cryptocurrency sphere.
Tagomi was co-founded by former HFT technologists, including Greg Tusar, global head of electronic trading at Goldman Sachs, and Jennifer Campbell from Union Square Ventures. It recently raised $28 million from Peter Thiel’s Founder Fund and Paradigm as well as others.
In an interview, Tagomi co-founder Marc Bhargava told Finance Magnates that while more retail-type exchanges are emerging, companies like Tagomi came on board for the institutions.
“But someone looking to do larger trades and wanting to do them electronically rather than calling an OTC, wanting to use more advanced algo types, wanting to do things like lending and shorting–and most importantly, wanting it done on an agency basis (meaning wanting someone to execute these trades and then post trade reports and show them how they did it in the best possible way for them–none of [those features] really existed, because it was a really nascent market,” he said.
Hybrid intelligence firm Cindicator is launching Cindicator Capital, a crypto hedge fund based on hybrid intelligence and quantitative research.
In a press release on Dec. 11, the company said that this new crypto fund provides access to investment strategies based on hybrid intelligence data as well as quantitative research, which includes data from forecasts and decentralized analysts. Cindicator co-founder and CEO Mike Brusov said:
“The Cindicator ecosystem is entering the next level of its development, preparing to start the onboarding of external capital from a fund of funds, family offices, VC funds, institutional investors and high-net-worth individuals. The combination of the collective human mind and machine intelligence provides a unique and sustainable data source for seeking alpha.”
Crypto fund will reward analysts for making correct forecasts
The company reportedly invested $500,000 into the fund’s strategies and will increase that amount to $2.5 million over the next few months. Revenues generated by the fund will reportedly be used to “reward analysts for correct forecasts in proportion to their intellectual efforts and the quality of indicators based on their predictions.”
The hybrid intelligence firm launched Edge in September, a web app for receiving and tracking indicators for over 150 digital assets. The app’s indicators intends to help make trading decisions by estimating probabilities of various events across cryptocurrency assets, stocks and futures. The new product reportedly targets holders of Cindicator (CND) tokens.
In August, Cindicator announced the CND token listing on Kyber Network. Earlier in 2019, CND token was listed on Allbit, a fully decentralized subsidiary exchange of South Korea’s major crypto exchange Upbit.
At press time, CND token is ranked the 164th biggest cryptocurrency with a market cap of $18 million, according to data from Coin360.
Initially popularized by Bitcoin enthusiasts, stacking satoshi (sats) is becoming increasing popular and refers to the act of building a savings of Bitcoin (BTC) over time. A satoshi (or sat) refers to the smallest unit of Bitcoin @ 0.00000001 BTC.
If you’re new to this, today’s guide will be perfect for you - we’re gonna show you how to start Stacking Sats. If you’re already doing this, we hope some of the tips will help you out even more! Remember, no amount is too small when it comes to saving - a small amount can grow into a sizeable mound over a period of time with discipline.
Up your sats stacking game!
There are many ways to be stacking sats, but we’ll outline a few and share some of our thoughts on how we think you can up your sats stacking game! There are a few options when it comes to stacking sats:
The easiest, and likely to be most rewarding one is to consistently save by setting aside a small amount each day. $2/day may not seem like much, but in a year’s time, that would be $730. In Bitcoin terms, you’ve just saved yourself approximately 0.1 BTC (based on current prices).
Money saved = approx. $60/month
2. Cutting unncessary expenses
Another source of potential savings can come from cutting expenses that we never really thought to, either because we’re so used to them, or we just never considered an alternative to it. Here are some to help you get started:
The average American easily spends $10/day on coffee with ~3 cup of Coffee a day at $3.28 a cup. This is a great place to start because there are lots of ways to get cheaper coffee without sacrificing the caffeine fix. Some awesome folks have made the calculations to show that it only costs $0.9 to brew your own coffee. It’s worth it even after considering the investment needed for brewing equipment and beans!
You can be creative with this - coffee brewing is an art and there are many ways to go about it. Learn something new, save some money, stack some sats and have fun while at it! 🙂
We’ll keep this short and sweet, since everyone’s mileage varies when it comes to food. But know this: it has been estimated that you can potentially save up to $5,800/year just by eating out less, packing your own lunch, order smaller portions and repurposing leftovers. We also know that the average working adult (above 25 years old) spends over $3,400 in a year eating out - so let’s take both into consideration and assume that saving $5,800 is quite ideal and cut that in half.
We don’t have figures for this, but subscription services such as premium membership for certain apps, gym membership and streaming services can quickly add up - go through your credit card bills and look for those. You might be surprised to see that you can actually remove some of them and it wouldn’t affect your quality of life at all. Let’s go for a low-end esimate since this one can vary quite wildly across people.
Money saved = approx. $20/month
2.4 Lifestyle purchases
Cigarettes, booze, designer clothes, latest gadgets etc. are some of the things we sometimes can’t help but spend on - it doens’t always have to be that way! Think about it - do you really need the latest gadgets? If the current one works fine, you’ll be doing your future self a real solid one by not changing it and saving the money instead.
Money saved = approx. $20/month
3. Cashback options
After cutting your expenses, you’ll be left with necessary expenses. And if you have to spend those money, why not get some cashback while you’re at it? Some services offer cashback or rebates in BTC when you spend, and here are some options we found:
- Lolli (Bitcoin Cashback when you shop) - Pei (Cash rebates in BTC/USD when you use their linked cards) - CoinRebates (Shop online, and receive rebates in Bitcoin) - SatsApp by Casa (Get paid simply by using Bitcoin)
Note: This is not an endorsement, rather what we found while Googling around. Gentle reminder to always do your due diligence!
4. Bonus: Stack sats for free!
Who doesn’t love free? We found a free and cheerful way to start earning sats and wrote a full guide on how you can get started on it as well - check out CoinGecko’s guide to stacking sats for free by receiving ads on LNTX Bot. You’ll have to see some ads, but aside from that it’s quite literally free.
How much can you then stack?
Including all the savings mentioned above, we are looking at nearly $500/month that’s freed up from changing habits or reevaluating some of our spending choices.
$500 - that’s about 0.07 BTC/month, or 0.84 BTC/year.
It’s never too late to start - we analysed historical data and what we found is that, in most years the returns from stacking Bitcoin have been positive and you’ll likely end up with sizeable amounts of Bitcoin if you start stacking sats now & do it consistently.
Of course, once you’ve saved up any amount, you should feel free to invest it anywhere else that you see fit. Afterall, the aim of this article is to help you think about aspects or parts of your life that can be optimized to remove unncessary spending. Having a cushion for any emergency is never a bad thing - you never know when rainy days will come!
That said, however rewarding Stacking Sats may be, it’s definitely more important to not do it at the expense of your family, loved ones, yourself or your friends.
And that’s all - I hope you’ve had fun reading this as much as I have writing it. Stack on!
The founder of now-defunct crypto exchange Quadrigacx may still be alive, even though he supposedly died in India about a year ago. A court-appointed law firm is seeking an answer on behalf of affected users. The firm has requested an exhumation and post-mortem autopsy in Canada of the body of Gerald Cotten, as some 76,000 users are still out millions of dollars.
Law firm Miller Thomson has sent a letter to the Royal Canadian Mounted Police regarding Gerald Cotten, the late founder and CEO of bankrupt Quadrigacx crypto exchange. The firm was appointed by the Supreme Court of Nova Scotia as representative counsel on behalf of users affected by the shutdown of the exchange. In its letter dated Dec. 13, the law firm wrote:
The purpose of this letter is to request, on behalf of the affected users, that the Royal Canadian Mounted Police (the ‘RCMP’), conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten.
The letter explains that the aim of the request is “to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten’s death and the significant losses of affected users.”
Along with the letter, the law firm sent some background material to the police consisting of publicly available information on the history of the exchange, the supposedly dead founder, and other related materials. The firm emphasized:
In our view, further highlight the need for certainty around the question of whether Mr. Cotten is in fact deceased … Representative counsel respectfully requests that this process be completed by Spring of 2020, given decomposition concerns.
Since the reported death of Cotten in December 2018 due to complications relating to Crohn’s disease while on honeymoon with his wife in Jaipur, India, there has been much speculation about what actually happened. Many people believe that the 30-year-old is not dead as circumstantial evidence continues to rack up against him. A Vanity Fair article published on Nov. 22 points out a number of theories and evidence surrounding the case, including the exchange’s co-founder, Michael Patryn, turning out to be a convicted fraudster.
Gerald Cotten, supposedly dead founder of bankrupt Quadrigacx crypto exchange
Cotten’s death was announced a month after he presumably died while his exchange continued to accept customer funds. The private hospital in India misspelled his name and the doctor later said that they were not sure about the diagnosis. By the time his death was made public, about 76,000 individuals could not access their funds totaling approximately $190 million. Cotten was also supposedly the only person with the private keys to the exchange’s cold wallets. However, court-appointed monitor Ernst & Young and several blockchain investigators found that the exchange’s crypto wallets were empty, and some funds were transferred to Cotten’s personal accounts or other exchanges. The company began bankruptcy proceedings in Nova Scotia in April, which were moved to Toronto earlier this year.
Both Canada’s tax authorities and the U.S. Federal Bureau of Investigation (FBI) are investigating Quadrigacx. On June 2, the FBI posted a notice on its website seeking victims in the investigation. Some people interviewed by the RCMP and the FBI said they got the impression that the agencies believe that Cotten might not be dead, explained the Vanity Fair article. One of the witnesses questioned by both agencies said:
They asked me about 20 times if he was alive … They always end our conversations with that question.
Do you think Gerald Cotten is alive? What do you think happened with Quadrigacx? Let us know in the comments section below.
Images courtesy of Shutterstock and Global News.
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A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
“It has been a year of success, but something not talked about enough in cryptocurrency is what it takes to build a business,” said Philip Gradwell, the chief economist at blockchain forensics firm Chainalysis, on the latest episode of the Bitcoin MagazinePodcast. “We provide software for compliance and investigations, but underneath it all, we’re a data company trying to understand how value flows between different entities. That looks kind of like information provision — Bloomberg. But, it’s hard to find a comparison for what we do in the traditional world because blockchains allow for new types of analysis that were not previously possible.”
The work of blockchain analysis companies such as Chainalysis isn’t always welcomed by privacy advocates. However, if you’re a Bitcoiner who cares about the future of the industry, this work is always worth watching.
There tend to be two great narratives that we hear about in how these companies affect Bitcoin.
One is that they bring more transparency and, in turn, increase Bitcoin’s adoption and legitimacy. The other is that they are leveraging data from the Bitcoin blockchain to provide better surveillance for corporate entities and nation-states at the expense of financial privacy.
Coming to the end of what appears to be a successful year of growth, Chainalysis cut 20 percent of its workforce back in November 2019. This episode of the Bitcoin Magazine Podcast features an interview with Gradwell, talking about what exactly is gleaned from blockchain analysis products, why they are seeing so much growth in the Asia-Pacific region, why his firm had to let go of 39 employees and whether it is putting resources into tracking off-chain transactions.
The following content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial or other advice. Nothing contained in this presentation constitutes a solicitation, recommendation, endorsement or offer by BTC Media, The Let’s Talk Bitcoin Network, or any third party service provider to buy or sell any securities or other financial instruments.