Tuesday, November 14, 2017

Cryptocurrency trading volumes reached a record high over the weekend that beats some US stock exchanges

Cryptocurrency trading volumes reached a record high over the weekend that beats some US stock exchanges

trader nyseA trader works on the floor of the New York Stock Exchange January 6, 2014. REUTERS/Brendan McDermid
  • Bitcoin, the red-hot digital currency known for its volatile price, was on a wild ride this weekend.
  • Bitcoin crashed more than 25% from its all-time high of $7,721 set Wednesday to a low of $5,617 per coin on Sunday, according to data from cryptocurrency watcher CoinDesk. 
  • Bitcoin cash, on the other hand, propelled to a record-high of $2,500 early Sunday morning.
  • Trading volumes on Sunday peaked at over $26 billion, according to cryptocurrency data site CoinMarketCap.com.
  • That's higher than the 5-day average trading volume for some US equity exchanges.

Bitcoin, the red-hot digital currency, had a wild weekend and that appears to have translated into record-breaking trading volumes across the cryptocurrency market.
Bitcoin crashed more than 25% from Wednesday's all-time high to a low of $5,617 Sunday. Bitcoin cash, the rival clone of bitcoin, witnessed an impressive rally that propelled the coin to a record-high of $2,500 early Sunday morning.
The 24-hour trading volumes for cryptocurrencies reached a record high above $26 billion on Sunday, according to data site CoinMarketCap.com.
To put that in perspective, that is higher than the 5-day average trading volumes for two US stock exchanges. Both IEX, the upstart exchange based in New York, and the Chicago Stock Exchange averaged less than $10 billion in trading each day for the last five days, according to data by Cboe Global Markets.
IEX saw $7.8 billion worth of shares exchange on its venue, whereas CHX witness $3.1 billion in trading volumes.
New York Stock Exchange and Nasdaq, on the other hand, saw more than $50 billion worth of shares exchange daily on average over the last 5 trading days.
Still, the record cryptocurrency volumes over the weekend indicate the growing interest in the red-hot market, which until very recently has rarely witnessed daily trading volumes over $10 billion.
In an October 16 note to clients, Bank of America Merrill Lynch said cryptocurrencies present a $1.6 billion opportunity for Wall Street. The figure was based on the assumption that cryptocurrency volumes end up at about 10% of current fiat currency trading volumes. Here's the bank:
"The FX market is highly liquid. For example, spot FX volumes were $1.65tr as of the most recent BIT Triennial survey in April 2016. If these volumes were to materialize, with the same relationship between spot market and futures, and the same revenue per contract, the revenue pool would be about $1.6bn."
Already, exchange giants Cboe and CME are looking to capitalize on the nascent space. They have both announced they are preparing to launch bitcoin futures products in the near term.
Higher volumes, according to Bank of America, could help legitimize cryptocurrencies across Wall Street, which still remains widely skeptical of their credibility.
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Many top Wall Streeters have derided bitcoin, for instance, as a vehicle used mainly by criminals.
In an interview with Bloomberg News, Larry Fink, the head of the largest investor in the world, BlackRock said the explosive growth of bitcoin points to "how much money laundering is being done in the world."
And JPMorgan CEO Jamie Dimon once said bitcoin was only useful for murderers and drug dealers.
Get the latest Bitcoin price here.>>

Amazon agrees to sell its cloud business in China for $300 million

Amazon agrees to sell its cloud business in China for $300 million

Jeff BezosAmazon CEO Jeff BezosDavid Ryder/Getty
AMZN Amazon.Com
 1,135.70 9.20 (+0.80 %)
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  • Amazon has agreed to sell its China web services business to Beijing Sinnet Technology Co. for $300 million.
  • Beijing Sinnet began operating the services in August 2016.


(Reuters) - Amazon.com Inc's Chinese partner, Beijing Sinnet Technology Co., said it would purchase Amazon's Chinese web services business for up to 2 billion yuan ($301 million), ending the U.S. firms's cloud-computing business in the country.
Sinnet, which began operating the Amazon services in August 2016, said in a filing late on Monday the pending purchase would help the unit "comply with local laws and regulations and further improve service quality and security."
Amazon did not immediately respond to a request for comment on Tuesday morning.
Chinese regulators are tightening rules on foreign data and cloud services, including new surveillance measures and increased scrutiny of cross-border data transfers.
In August Sinnet told customers it would begin shutting down VPNs and other services on its networks that allow users to circumvent China's Great Firewall, citing direct instructions from the government.
The changes are linked to new national cyber laws that came into effect in 2017, which make network providers liable for content deemed dangerous or offensive to "socialist values".
In 2013 Amazon's web services business signed agreements with provincial governments in China, and has previously worked with some of China's largest tech firms including Xiaomi Inc, Qihoo 360 Technology Co Ltd and Kingsoft Corp Ltd.
Cloud services have become a crowded and competitive field in China in recent years, with Alibaba Group Holding Ltd's cloud unit opening over a dozen overseas data centres since 2016. ($1 = 6.6400 Chinese yuan renminbi) (Reporting by Cate Cadell; Editing by Stephen Coates)

Monday, November 13, 2017

Meet 9 of tech's newest billionaires

Meet 9 of tech's newest billionaires

Patrick collison, john collison, stripe, sv100 2015Patrick, left, and John Collison, the co-founders of Stripe.Stripe
You've almost certainly heard of Mark Zuckerberg, Jeff Bezos, and Elon Musk. 
But have you heard of Patrick Collison, David Zalik, or Lucy Peng?
As I'm sure you know, the first group of men were startup founders who went on to become tech billionaires. What you may not know is the second group of people have also joined the tech billionaires club.
We're taking a look at some of that club's new members. To compile this list, we pulled from Forbes wealth rankings and the Bloomberg Billionaires index. To narrow it down, we limited it to people who have made the bulk of their wealth in the past three years.
Combined, these nine men and women have a net worth in the trillions of dollars, come from different countries and continents, and have companies in a range of tech industry sectors. Here are nine of the newest tech billionaires: 

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Rishi Shah, CEO of Outcome Health

Age: 31
Net worth: $3.6 billion 
Company: Health technology firm Outcome Health
Position: CEO, Founder 
The son of a doctor, Shah dropped out of Northwestern to launch Outcome Health with Shradha Agarwal, now the company's president. Outcome Health sells tablets and large touchscreen devices to doctor's offices and other healthcare providers and provides software for them that's designed to help them communicate with patients about health conditions, treatments, and other matters. The devices can also display advertising. 
Outcome Health was valued at $5.6 billion in May 2017. Shah owns 80% of the company.
Source: Forbes

Frank Wang, CEO of DJI Technology

Age: 37
Net Worth: $3.2 Billion 
Company: Chinese drone maker DJI Technology 
Position: Founder, CEO 
Wang's company, DJI Technology, has been selling drones since before they were cool. Now, though, they're big business. Between 2016 and 2020, the total amount spent on the robotic aircraft will total $100 billion, Goldman Sachs has estimated. DJI's sales accounted for some 70% of the consumer and commercial portions of the drone market last year, according to Goldman Sachs. 
Wang started DJI in 2006 out of his dorm room at Hong Kong University of Science and Technology, and his company was one of the first to market a ready-to-fly drone that actually flew. He's been riding the industry's wave ever since and became Asia's youngest tech billionaire in 2017.
Sources: ForbesReuters, and Mashable 

Jan Koum, CEO of WhatsApp

Age: 41
Net Worth: $9.7 billion 
Company: Messaging app developer WhatsApp 
Position: CEO, Cofounder
Koum moved from Ukraine to Mountain View, California, with his mother when he was 16 and  taught himself computer technology in high school. He grew up poor, living off food stamps, before landing a job as an engineer at Yahoo. After leaving Yahoo and spending time in South America, he applied for a job at Facebook but was rejected.
Koum and his cofounder Brian Acton then launched WhatsApp. The app started as a service that allowed users to share their status updates with friends but soon morphed into the messaging service it is today. 
In 2014, WhatsApp caught the attention of Facebook CEO Mark Zuckerberg. Koum and Zuckerberg talked shop for two years before Facebook offered to buy WhatsApp in 2014 for $22 billion in cash and stock. As Facebook's stock value rose, so did Koum's net worth. 
Sources: Forbes and Business Insider

Brian Acton, Cofounder of WhatsApp

Brian Acton, Cofounder of WhatsApp
Reuters
Age: 45
Net worth: $6.7 billion 
Company: WhatsApp
Position: Cofounder (has since left)
Much of Acton's career has been lived out in tandem with Koum's. He worked alongside Koum at Yahoo then traveled with Koum in South America for a year after they left the internet giant. 
When they returned from South America, Acton applied and was rejected for a job at Facebook. He then cofounded WhatsApp with Koum and stayed on with him at the company after Facebook acquired it. 
But Acton just parted ways from Koum. He left Facebook and WhatsApp in September to start a non-profit that will be "at the intersection of nonprofit, technology, and communication," he wrote in a Facebook post.
Sources: Forbes and TechCrunch

Adam Neumann, CEO of WeWork

Adam Neumann, CEO of WeWork
Adam Neumann
Age: 38
Net Worth: $2.6 billion 
Company: Coworking space provider WeWork
Position: CEO, Cofounder
Neumann moved to the US from Israel in 2001 after serving as an officer in the Israeli military. He got the idea for what eventually became WeWork while running his previous business, a baby clothing company in Brooklyn.
He noticed that a nearby warehouse building was empty and convinced its owner to let him manage and rent out the space. That was the basis of coworking company GreenDesk. Neumann and cofounder Miguel McKelvey sold their stakes in GreenDesk in 2010 to found WeWork. 
Today, WeWork has offices in 40 cities across the country. It was recently valued at $21 billion after scoring a $3 billion investment from Softbank. 

David Zalik, CEO of GreenSky

David Zalik, CEO of GreenSky
GreenSky/Youtube
Age: 43
Net Worth: $2 billion 
Company: Financial technology provider GreenSky
Position: CEO, Cofounder 
Another Israel native, Zalik moved to Alabama with his family when he was four. He was a whiz kid, acing the SAT college entrance exam at 13. Instead of going to high school, he enrolled in Auburn University. 
Zalik left Auburn without graduating to pursue his first business, MicroTech, a computer assembly company. He sold MicroTech in 1996. After a few less-successful ventures, he started GreenSky, which helps home improvement contractors, healthcare providers, and other small businesses allow their customers to pay for their services on credit.
Capital One cofounder Nigel Morris invested an unknown seven-figure amount in GreenSky in 2014. That fall, venture investors, including TPG, bought a 17% stake in GreenSky at a $1.8 billion valuation. By 2016, when Fifth Third invested in the company, GreenSky's valuation had doubled.  
Source: Forbes

John and Patrick Collison, President and CEO of Stripe

John and Patrick Collison, President and CEO of Stripe
Stripe
Ages: John is 27, and Patrick is 29 
Net worth: $1.1 billion each 
Company: Online payment processor Stripe
Positions: John, President and Cofounder; Patrick, CEO and Cofounder
The Collison brothers grew up in a small village in central Ireland, teaching themselves to code at a young age and competing with each other. Patrick graduated from secondary school at 16 and then enrolled at MIT. John followed him to the US a few years later, enrolling at Harvard. They both dropped out of college in 2009 to head to Silicon Valley to start what would become Stripe.
Today Stripe counts Lyft, Best Buy, and Google as customers. In November 2016, the company raised $150 million at a $9.2 billion valuation, making the Collison brother instant billionaires.
Sources: ForbesBloomberg

Lucy Peng, Executive Chair of Ant Financial

Age: 44
Net worth: $1.14 billion 
Company: Mobile payments provider Ant Financial
Position: Executive chair
Peng was one of Alibaba's 18 cofounders and held numerous positions at the company, including CEO of AliPay, its mobile payments service. When Alibaba spun off AliPay, which eventually became Ant Financial, she remained as its head.
Ant was recently valued at $74.5 billion, and Peng now serves as its Executive Chair. She first cracked the Forbes billionaire list in March 2017.
Sources: Forbes, Fortune

Satoshi Nakamoto, Creator of bitcoin

Satoshi Nakamoto, Creator of bitcoin
Age: Unknown
Net worth: Unknown
Company: Unknown
Position: Unknown
Nakamoto is likely the pseudonym of the mysterious creator (or creators) of Bitcoin. There's been a lot of speculation about Nakamoto's actual identity, but nothing has ever been confirmed.
In 2013, bitcoin developer Sergio Lerner estimated that Nakamoto owned nearly $1 million worth of bitcoin. With bitcoin's price having risen exponentially since then, Nakamoto could have a fortune in the millions or billions of dollars.
Get the latest Alibaba stock price here.

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