Palladium, Bittrex Launch World’s First Initial Convertible Coin Offering (ICCO) In Crypto-Friendly Malta

  • Maltese blockchain firm Palladium launched its Initial Convertible Coin Offering (ICCO), a proposed improvement on the current ICO model.
  • Crypto exchange Bittrex will reportedly help Palladium develop its own cryptocurrency exchange.

An “ICO 2.0 Model” has reportedly been developed by Bittrex and Maltese blockchain firm Palladium. The newly proposed ICO model is called the Initial Convertible Coin Offering (ICCO) and will “give investors peace of mind and a stake in the future of virtual currencies.” The ICCO model incorporates certain ideas from the older and more established crowdfunding method known as initial public offerings (IPOs), according to Bittrex’s official blog post.

The blog further notes that ICCOs borrow some basic ideas from the widely-used ICO model and are also regulated by the Maltese Financial Services Authority (MFSA). Additionally, Bittrex’s communications team states that each token issued through this new method is referred to as a “convertible warrant” and will be “subject to stringent EU rules”. Investors who purchase tokens issued through the ICCO model will reportedly be able to exchange them for shares in Palladium “three years after the issue date.”

“Bridging The Gap Between Traditional Financial Services And Crypto”

Palladium founder Paolo Catalfamo believes that this initiative will “bridge the gap between traditional financial services and cryptocurrencies.” He added that the Palladium platform could be instrumental in creating “more than 100 job opportunities.” Professor Catalfamo’s comments came during the project’s launch at the Malta Stock Exchange, Valletta where he also stated that ICCOs and their supporting regulatory framework would make it easier for businesses to adopt cryptocurrencies.

The professor went on to describe Malta’s efforts to regulate crypto and blockchain related activities as “comprehensive” while noting that the island country also has “a dedicated blockchain unit at the MFSA.” Per the Palladium founder, this type of “vibrant environment” is conducive to the ongoing development and advancement of his company’s business.

Regulated Framework For Crypto And Blockchain Companies

Catalfamo further stated that his company’s ICCO model will provide institutional investors a properly regulated framework for crypto and blockchain related investment opportunities. He thinks that “the lack of regulation has kept [institutional investors] waiting on the sidelines.” However, he says that his firm will help attract more institutional clients to the crypto industry by offering them “regulation-compliant, multi-asset accounts to manage fiat and crypto currencies.”

Palladium’s crowdfunding campaign plans to raise €150 million in order to acquire “a controlling interest” in one of Europe’s financial institutions and launch its own regulated cryptocurrency exchange through a partnership with esports betting platform Unikrn and Bittrex. The funds raised will also be used to create a blockchain network for the “clearing and settlement” of digital assets. Additionally, the blockchain startup will reportedly invest part of the proceeds in various financial services and other blockchain-related projects “complementing Palladium’s business.”

Notably, Malta has now become well-known for its crypto-friendly environment due to large cryptocurrency exchanges such as OKEx and Binance shifting their headquarters from China over to the European island nation. The launch of Palladium and Bittrex’s joint crypto project was attended by Malta’s Prime Minister Joseph Muscat, MFSA CEO Joseph Cuschieri, and the island’s Financial Services Parliamentary Secretary Silvio Schembri.

Binance Coin Could Face ‘Bloody Correction’ if Margin Trading Rollout Goes Awry, Analyst Claims

Josh Rager, a cryptocurrency trader and analyst popular on social media, has recently predicted that Binance Coin (BNB), the cryptocurrency of leading crypto exchange Binance, could face a ‘bloody correction’ if anything goes wrong with the rollout of its margin trading feature.

On microblogging platform Twitter the trader reminded his followers that all markets correct, and that a failure in the rollout of its margin trading options could be a trigger that sees traders dump BNB.

Data from CryptoCompare shows the BNB token has been having an incredible year so far. While in early January the cryptocurrency was trading at about $6, it has since surged to hit the $35 mark this month. In the last six months, cryptocurrency’s price has risen by over 500%.

This saw Binance Coin become the seventh largest cryptocurrency by market cap. Its price rose as the exchange has been seeing various positive developments, among them the launch of Binance Jersey, which lets users trade BTC and ETH for EUR and GBP, and the launch of a decentralized exchange that lets users trade directly from their wallets.

This month, the cryptocurrency surged to a new all-time high after it teased the rollout of margin trading, a feature seen as an important growth factor for crypto trading. So far, Binance stayed away from it, while exchanges like Kraken and Poloniex already offer it to its users.

Speaking to TechCrunch, a Binance representative reportedly confirmed that the exchange is going to launch margin trading “soon.” To Josh Rager, if “anything remotely goes wrong” with the launch, the price of Binance Coin will “dump like no other.”

It’s worth noting, however, that earlier this month Binance was hacked for over 7,000 BTC, then worth over $40 million. The crypto’s price was barely affected by the incident, even though it forced the exchange to temporarily shut down deposits and withdrawals. The market likely barely reacted as the company has a Secure Asset Fund for Users (SAFU) that covered the losses.

At press time, Binance Coin is trading at $33.3 after falling 4.9% in the last 24-hour period. Over the past 30 days, the cryptocurrency is up by 42%.