NY regulator approves Winklevoss bid to trade digital currency ether

in #beyondbitcoin8 years ago (edited)

Entrepeneurs Tyler and Cameron Winklevoss arrive at the Metropolitan Museum of Art Costume Institute Gala (Met Gala) to celebrate the opening of ''Manus x Machina: Fashion in an Age of Technology'' in the Manhattan borough of New York, May 2, 2016.
REUTERS/LUCAS JACKSON

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New York state has approved the application of Gemini Trust Company, founded by investors Tyler and Cameron Winklevoss, to trade digital currency ether on its bitcoin exchange, Governor Andrew Cuomo announced on Thursday.

Ether, an alternative currency that differs from bitcoin, is a token or digital asset of the Ethereum platform, a blockchain, or public ledger of all ether transactions. The platform uses ether to execute peer-to-peer contracts automatically without the need for intermediaries. The currency is often used by software developers.

"With robust regulatory oversight, we are maintaining our status at the forefront of this technological revolution and ensuring that users have a safe and secure experience," Cuomo said in a statement.

The approval by the New York State Department of Financial Services marks the state's first consent for a digital currency-related service beyond bitcoin.

Trading on ether will begin on Monday, May 9, said Cameron Winklevoss, Gemini's co-founder and president, in an interview with Reuters. Customers will be able to store their ether from Thursday until it starts trading on the exchange on Monday.

Winklevoss also said the brothers' investment firm Winklevoss Capital is a "significant" holder of ether.

"We started buying ether at the beginning of the year," Winklevoss said. "Ethereum Foundation has a set number of ether that they have set aside over a period of time..(and) the proceeds from that go to the funding of the foundation and the developers to further the protocol."

The Winklevoss twins chose ether to trade on their exchange because of its "unique capabilities" that are different from bitcoin.

"There is a place for ether on our platform. It does what bitcoin doesn't do," Winklevoss said. "So that is the sort of criteria: that it is different enough from bitcoin and the proposition is great enough that this makes sense for us to include it in our platform."

According to coinmarketcap.com, ether is trading at $9.97 on late Thursday, with a market capitalization of about $795 million, the second largest behind bitcoin. Bitcoin currently has a market cap of $6.9 billion. Daily volume for ether is around $20 million.

Ether trades on other exchanges as well, but Winklevoss said those exchanges are unregulated or unlicensed.

"It's pretty clear that in the U.S. if you're an exchange, you are required at the minimum a money transmission license in each state," Winklevoss said. "Anybody who's operating an ether exchange doesn't have a license and is on borrowed time."

Demand for ether has steadily increased since its launch last year.

"Most of the people who work on ether right now are (software) developers developing applications for smart contracts on Ethereum and you need ether to do that," Winklevoss said.

Aside from developers, British pop artist Imogen Heap has put her music on the Ethereum platform. "She (Heap) created smart contracts on Ethereum whereby if you send enough ether to the address on the contracts, you can download her songs," Winklevoss said.

Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio and Andrew Hay

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I am interested to see the trading volume of ETH/USD at Gemini over the next 2-3 days as "The DAO"(https://daohub.org) Ethereum based crowd sales for the DAO that will fund Slock.it (https://slock.it) and other project/proposals will have a price increase of 5% in 3 days time!, for the next 9 days following that the cost of 100 DAO tokens will increase by .05 ETH, before flat lining again at 1.5 ETH / 100 DAO tokens (current price: 1 ETH = 100 DAO tokens). Therefore any USD Investors that need and entry would be better to do so sooner rather than later.

The DAO crowdsale price:


Given the price has been fixed for the last 14 day there has been no rush to get in as price is fixed; i think a lot of people recognised this and have been biding their time waiting for the most competitive price of Ether before diving into the crowd sale.

Gemini doesn't seem to offer volume stats on their website unless you are logged in; but they do have a public API which exposes the volume traded. At the moment this is 6500+ USD in the past 24hours.

ETH/USD Volume and Gemini:

As you can see from the stats below,'The DAO' has been a very large crowd sale raising 36+ Million USD and still 17 days remaining.

'The DAO' Current Stats:

*DAO TOKENS CREATED: 384.33 Million DAO
*TOTAL ETH: 3.84 Million ETH
*USD EQUIVALENT: 36.09 Million USD
*CURRENT RATE: 1 ETH / 100 DAO TOKENS
*UNTIL NEXT PRICE CHANGE: 3 days
*Days Left: 17 days (ENDS 28 MAY 09:00 GMT)

Didn't you tell me these guys were the facebook ones?

Yep these are the facebook guys, that have nothing to do with facebook any more. they are also the guys that had a bullish view on bitcoin to the tune of $40,000 USD per coin.
In theory all bitcoin needs to do is exist over time and let the inflation of the USD take it course and this figure is achievable.

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