The digital currency realm experienced its fair share of events this week, highlighted by a number of bitcoin firms undergoing new partnerships and a Blockchain-based startup raising $3 million in seed funding.
Pantera on Price Drop: Short Selling to Blame
Pantera Capital has weighed in on the recent tumble in bitcoin prices. The hedge fund believes that the introduction of margin trading to bitcoin has likely increased the magnitude of price moves. The options market for bitcoin is limited so investors have a tougher time hedging their positions, leading them to liquidate positions under difficult market conditions.
Their analysis pointed out that short sellers have tried to take advantage of the declines, further contributing to the vicious cycle. Cumulative short interest, they say, is at an all-time high.
BitQuick Goes MultiSig, Partners with BitGo for Its P2SH Addresses
BitQuick is upgrading its wallet security, partnering with BitGo to implement multisignature technology for its bitcoin trading service.
Like its related altcoin buying service, AltQuick, BitQuick isn’t a full-scale order book-driven marketplace. Buyers submit orders and lock in a price, after which they pay the indicated amount at a branch of the company’s bank. They then receive their bitcoins within a few hours. Sellers deposit their bitcoins with the service and receive cash deposits or SEPA transfers.
Bitfinex to Leverage Tether for Blockchain-Backed Fiat Transfers
Bitfinex has partnered with Tether, a platform using a blockchain to transfer fiat currencies, for client use on its exchange.
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Currently, the “Tether” unit of currency is used on a one-to-one basis to represent USD. There are future plans to add support for the yen and the euro.
Bitfinex has been gradually re-engineering each component of its operation, recently partnering with AlphaPoint to rebuild its backend. On Bitfinex’s latest move, Tether co-founder and CEO Reeve Collins said, “This integration with Bitfinex is the first step into a world where traditional currencies move like bitcoins. Dollars have now inherited the portability benefits of cryptocurrency.”
Blockchain Web Service BlockCypher Raises $3 Million in Seed Funding
BlockCypher, a startup that looks to make blockchain technology easy to integrate into any application, has raised $3 million in seed funding.
The round was led by three generations of the Draper family. Other investors include Foundation Capital, New Enterprise Associates, Jerry Yang (through AME Cloud Ventures), Upside Partnership, Streamlined Ventures and Fenox Venture.
Garza Declares: “I Will Stand behind My Promises. PayBase Will Honor Every Paycoin at $20″
GAW Miners CEO Josh Garza has sought to reassure angry crypto enthusiasts over the $20 price guarantee for the company’s recently introduced Paycoin.
The coin, which has again changed its logo, has thus far not lived up to the $20 price floor previously mentioned. It is currently hovering near all-time lows of 0.016 BTC ($3.15).
There had been some talk if Garza in fact committed to a $20 floor, but in recent communications, he reaffirmed what was believed to be the original message.