Bittrex Acquires 10% Stake In Malta-Based Blockchain Firm Palladium

  • US-based cryptocurrency exchange Bittrex has acquired a 10 percent ownership stake in Malta-based blockchain startup Palladium.
  • Palladium aims to built a "unified" platform that bridges the gap between fiat and crypto-based payment systems.
  • Bittrex's stake in Palladium has been announced shortly after the two companies launched the very first Initial Convertible Coin Offering (ICCO), an effort to improve the current ICO model.

US-based cryptocurrency exchange Bittrex has reportedly acquired a 10 percent share in Malta-based blockchain startup Palladium. In July, Bittrex and Palladium had partnered to launch the world’s first Initial Convertible Coin Offering (ICCO), which aims to be an improved version of the current initial coin offering (ICO) model.

Improved, Regulated Crowdfunding For Crypto

As covered, the ICCO was developed to “give investors peace of mind” as there have now been many scams associated with ICOs. Each token issued to investors using this improved crowdfunding model is referred to as a “convertible warrant” which can be exchanged for shares in Palladium “three years after [its] issue date.”

Through its partnership with Bittrex and e-sports betting platform Unikrn, Palladium had also announced its plans to raise €150 million through the sale of its tokenized securities which started on July 25th and will end on September 30th.

According to the Times of Malta, Unikrn has a 15 percent share in Palladium and Investar Holding Corporation owns 85 percent of the Malta-based blockchain company. Investar Holding is fully owned by Paolo Catalfamo, the CEO and founder of Palladium.

Bridiging The Gap Between Fiat And Crypto

In order to bridge the gap between traditional finance and digital currencies, Palladium aims to become the world’s “first regulated unified platform.” As described on its official website, the company plans to develop a blockchain that “bonds banking with cryptocurrency.”

Palladium’s platform will be designed to offer its clients a “single, unified interface” for managing a diverse set of asset classes while also allowing them “to access a wide array of services denominated both in fiat and cryptocurrencies.”

Other services the platform intends to provide include paying for everyday purchases and bills with crypto or fiat currencies. Commenting on Bittrex’s role and recent investment in Palladium, Catalfamo said that:

“We are excited to have such a global player on board. Bittrex’s investment in Palladium is a confirmation of Malta’s sound decision to be at the forefront of regulating blockchain technology.”

Paolo Catalfamo

Self-Regulating Organization

Notably, Bittrex joined the newly established Virtual Commodity Association (VCA) Working Group on August 20th, which is an “industry-sponsored, self-regulatory organization” (SRO) that aims to monitor “virtual commodity marketplaces.”

Other crypto firms participating in the VCA include the Winklevoss-owned Gemini Trust Company, Luxembourg based bitcoin exchange Bitstamp, and US-based crypto exchange bitFlyer.

As CryptoGlobe reported on August 16th, the Ripple company named Bittrex as one of its first three “preferred” digital currency exchanges for Ripple’s xRapid transactions involving USD.

Bittrex and Ripple have also partnered in order to work collaboratively on an initiative that aims to develop a “healthy” business environment for cryptocurrency exchanges. As covered, other partners involved in this project include Mexican digital currency trading platform Bitso and Philippines-based crypto exchange Coins.ph.

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Coinbase Quietly Pulls the Plug on Its Cryptocurrency Bundle Product

Francisco Memoria

The San Francisco-based cryptocurrency exchange Coinbase has quietly pulled the plug on its Bundle product, which allowed users to buy a basket of cryptocurrencies with fiat.

According to an update on its FAQ page, the cryptocurrency exchange “deprecated” the Coinbase Bundle product, and all assets in it have been “redistributed to their respective individual asset wallets.”

The move, first spotted by Crypto Briefing, is believed to have been made because the product wasn’t a profitable one. Coinbase Bundle was launched back in September of last year to make it easier for investors to gain exposure to the cryptocurrency ecosystem, through a weighted basket of the cryptocurrencies the company then offered.

This means users could use a small amount of fiat to buy bitcoin, litecoin, ethereum, bitcoin cash, and ethereum classic at once. Per the exchange itself, the bundle’s purpose was to “make buying more convenient and less overwhelming.”

At the time, the exchange also launched other features: Coinbase Learn and new asset pages.

The timing was off, however, as the product was launched during the bear market that saw the price of most cryptocurrencies drop well over 80%. Images shared on social media in December of 2018, when bitcoin hit its $3,200 low, showed investing $100 on Coinbase would’ve led to significant losses only a few months later.

As covered, Coinbase recently launched a service offering its users four free exclusive “trading signals,” in a bid to help its customers “independently create and manage their own crypto strategy.”

It’s worth noting Abra, a digital asset exchange and wallet provider,  launched a product packaging various cryptocurrencies into one at about the same time Coinbase launched its Bundle product. Abra’s product is its BIT10 token.