Cardano’s smart contracts ??; BNPL player Zip Co goes crypto ??♂?; Crypto ETFs triple in value ??

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Last week (13-17 September) was a really hot and super exciting week in Blockchain & Cryptocurrency space.?We will look at?Cardano's smart contracts; BNPL player Zip going into crypto; Crypto ETFs tripling in value and other interesting news and developments.

Without further ado, let us dive into what has happened in the Blockchain & Crypto sector last week. Let’s connect the dots.

Cardano’s smart contracts ??

The update???Cardano’s, one of the largest cryptocurrencies in the world, network update,?Alonzo, is finally live. With Alonzo’s arrival smart contracts – pieces of code that self execute when predefined conditions are met – can now begin to be created and deployed on the Cardano mainnet.

The USP ???Cardano is an open-source public blockchain developed by Input Output and founded by Charles Hoskinson, one of the founders of Ethereum. First released in September 2017, it was designed to challenge Ethereum’s decentralized finance dominance while also maintaining a level of interoperability with Ethereum and other blockchains.

?? THE TAKEAWAY

Decentralization era.?The newest Cardano development will not only open the new era of smart contracts but also be part of an effort to build out the network’s security and decentralization. Furthermore, the introduction of Cardano’s Plutus scripts will also enable decentralized applications (dapps) to be built in the ecosystem. However, it may still take some time before the Cardano ecosystem is entirely ready for dapps to fully materialize on the mainnet, as the protocol continues to be developed and to mature. And that opens up some amazing opportunities for the cryptoeconomy. On the other hand, Cardano’s native cryptocurrency,?ADA, is down 5.76% from yesterday’s high of $2.79 and is currently changing hands for around $2.40. If you’re bullish on Ethereum and its potential, Cardano should be worth your attention too.

BNPL player Zip Co goes crypto ??♂?

Crypto plans???Australian buy-now-pay-later firm?Zip Co?is planning to cater to the “millennial finance diet” by offering the ability to buy, sell, hold and pay in crypto using the company’s mobile app.?Not a surprise, is it????♂?

The timeline ???Although no commencement date for the service was announced, Zip co-founder Peter Gray said in July its crypto offering would be available within 12 months.

Zip said it will be developing a number of features based on crypto and buy-now-pay-later (BNPL) plans – the company’s bread-and-butter business model that allows customers to pay for goods in installments.

First - US?????Crypto features will initially be rolled out in the U.S., with plans to expand more “broadly” in the future. Zip is among the first BNPL firms to offer crypto services to its customers.

?? THE TAKEAWAY

The differentiation.?It’s obvious that BNPL is one of the hottest FinTech verticals right now. Yet, with interest comes a lot of competition and peer pressure. Hence, Zip is among the first BNPL firms to offer crypto services to its customers, and that could be its unique niche. What’s also interesting is that the data is on their side. Research previously undertaken by the company and presented during the Retail Investor Day showed BNPL customers were 67% more likely to trade in cryptocurrency than non-BNPL customers. If you know where’s the money going - you follow it!

Crypto ETFs triple in value ??

The jump ???Total assets held in crypto ETFs aka?exchange-traded funds?globally reached $9 billion as of June, up from $3 billion the year before, per the Financial Times. That’s x3 increase in a single year ??

Definition ???A cryptocurrency exchange-traded fund (ETF) is?a fund consisting of cryptocurrencies. While most ETFs track an index or a basket of assets, a cryptocurrency ETF tracks the price of one or more digital tokens. Based on investor sales or purchases, the share price of cryptocurrency ETFs fluctuates on a daily basis.

The geography ???While the investment vehicle is yet to be legal in the US, investors have access to crypto ETFs elsewhere, like?Canada?and?Switzerland.

The demand ???Crypto ETFs have become increasingly popular in conjunction with the global adoption of crypto over the last couple of years. What’s the proposition you ask? Well, ETFs have the added benefit of giving investors exposure to a wide range of cryptos without buying separate tokens. Pretty much the say way traditional ETFs expose you to the stock market without buying separate stocks.

Furthermore, it must be noted that crypto ETFs also avoid the additional costs and headaches that come with direct ownership, such as paying for custody services or trying to understand the advantages and risks of custodial and non-custodial wallets.

?? THE TAKEAWAY

Huge stakes on the United States.?Crypto ETFs are not yet legal in the US which has a massive market. Market players are attracted by the AUM- and revenue-generating opportunities. Many financial giants including Goldman Sachs have submitted applications for a crypto ETF but the SEC has delayed making any decision and called for greater investor protections from applicants. Once the SEC gives the green light to crypto ETFs, global AUM growth will accelerate as investors flood in. The market will become even more mature and mainstream. So the stakes are really high here!

Extra Reads & Quick Bites for Curious Minds??

• New crypto CEO?????Cryptocurrency exchange Binance.US has announced?Brian Shroder?as its new president, a move that will add stability to the company in the wake of the resignation of CEO?Brian Brooks?last month, Bloomberg reported. Shroder, who was an executive at Ant Group and Uber Technologies, will oversee strategy, execution, fundraising, business and corporate development for Binance.US.
• Taxes with benefits ???El Salvador will exempt foreign investors from a?tax on profits?from bitcoin investments, according to President Bukele’s legal adviser Javier Argueta. The Central American country, which last week became the first state to recognize bitcoin as legal tender, is reportedly attempting to encourage foreign investment.?Will it be enough though? ??
• Crypto as cheery on top ???FinTech?MoneyLion, set to go public Sept. 22, introduced cryptocurrency buying and selling for Bitcoin and Ethereum from within the company’s app and will continue rolling out the feature over the coming weeks, until the feature becomes available to all customers by Oct. 5.
• Insiders ???OpenSea?said it uncovered evidence of?insider trading?on its NFT marketplace and is implementing new policies to prevent future occurrences.
• Bitcoin ETF ???Fidelity Investments privately prodded the U.S. Securities and Exchange Commission last week to approve its Bitcoin ETF, according to recent filings, citing increased investor interest in crypto and similar funds worldwide.

Money Moves??

• Steve Cohen-backed NFT platform closed Series A at a $333M valuation.
• Crypto miner?Argo Blockchain?launches IPO on Nasdaq.
• Crypto exchange?Gate.io?has launched a $100M fund designed to support budding projects in the industry. Gate Ventures, the exchange’s venture capital vehicle, is focused on early-stage investments in decentralized infrastructure, ecosystems, and applications
• Crypto wealth manager?Abra?has closed a $55M Series C?fundraise a little over a year after settling charges with U.S. regulators.

Continue reading by subscribing to?Linas's Newsletter.?You will receive fresh news about FinTech, Blockchain & Crypto with hot takeaways every day.

P.S.?You might enjoy my earlier pieces as well:

???The Perfect Pitch Deck: How Coinbase Raised Seed Capital and Began Journey Towards $100B Worth Public Company

???Cutting Through the Noise: Bitcoin Fundamentals & Why it Was Created

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About: I am?a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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