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Soft Bank comes out of its share of the giant NVIDIA

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Soft Bank comes out of its share of the giant NVIDIA

The Japanese bank, SoftBank Groups, has sold its entire stake in the US chip manufacturer Nvidia.

The announcement, which was made on Wednesday, together with the results of the company’s profits and losses, is the result of a decision made at the beginning of December 2018 as a result of the recession of the technological actions that occurred in the last quarter of the US giant.

Soft Bank Group built a so-called ‘collar trade’ of around $ 6 billion, which allowed Japanese investors to accumulate shares and protect against a fall in Nvidia share prices, according to sources of the investor group.

Masayoshi Son, SoftBank’s founding CEO, said that The Vision Fund had also sold its entire stake in Nvidia in January. Said fund of $ 100 billion of the group, launched at the end of 2016 with the support of Saudi Arabia that had allowed it to have shares in almost all major technology companies such as Uber and Slack to name a few.

Soft Bank recorded a year by year increase of 60% in operating profit over the last three months of the past year, approximately $ 3.99 billion and the earnings of the Fund Vision tripled.

The collar trade strategy allowed the group to raise its net profits from April to December 2018, surpassing other Japanese giants such as Toyota Motor, Japan’s largest automaker.

The outbreak of Nvidia’s SoftBank seems like a blow to investors, although the investor group only had a 4.9% stake in the chip maker; it may be the symptom of the recovery of Nvidia still aesthetic for a while given that the bear market of cryptocurrencies and the tense political situation between China and the US.

However, with a volatile market like the current one and a prolonged bear market spread over more than 365 days, this type of news could affect the crypto-market a bit more.

The reason lies in the fact that Nvidia together with AMD is the largest suppliers of specialized graphics cards (GPU) frequently used by professional players and cryptocurrency miners.

According to a Market Insider analysis, Nividia during the spring of cryptocurrency mining between the last quarter of 2017 and the first quarter of 2018 had a market share of 75% of the GPU sold with mining fines, while the company’s IT AMD controlled the rest.

Already last year, Nvidia, as of the second quarter of 2018, had been reporting fall in the prices of its shares, product of the technological recession due to the trade war between China and the US, mainly combining to weaker demand for mining cryptocurrencies that does not allow achieving greater margins of profitability in mining.

Nvidia has seen the price of its shares fall in the last quarter of last year, as a result of a reduction in revenues and overestimation of the same as said CEO Nivida, Jensen Huang.However, as indicated in a recent analysis of RBC Capital Markets, NVIDIA generated more money than was declared for cryptos and Blockchain.

In November 2018, Nvidia already posted fourth quarter prospects below expectations, affected by weakness in its gaming division and the persistent loss of demand for the collapse of crypto mining. Even Goldman Sachs and Wall Street caused cuts in their stock prices because their bullish view had been “clearly wrong”.

At the time of writing, Nvidia presents a quotation of $ 151.75and still above the current consensus target of $ 227.18 foreseen for the 52 week trading range between $ 124 and $ 292.

Cryptocurrency

Is Ethereum Battling For A Bullish Breakthrough?

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Is Ethereum Battling For Survival?

With the level of cryptocurrency awareness currently on the increase and a lot of new projects coming up with better positions to displace the old ones, there is a need for the second largest cryptocurrency in terms of market capitalization Ethereum (ETH) to fight for its life.

ETH is presently moving towards the $150 after weeks of leaving this price mark. It has shown that it is a force in the market by reacting positively to the positive volatility in the market. The present market is experiencing an increase in price bullishness and ETH is also among the altcoins that are gaining against Bitcoin and USD.

However, the presence of complement sites has shown that ETH is out to do all things to remain relevant. These projects are offering alternatives to what the Ethereum blockchain could attain. The Tron blockchain has now been officially listed as the number one dapp blockchain ahead of Ethereum. So, maintaining a continuous price change ahead of TRX, the Tron token could restore the confidence of Ethereum investors.

Also, the attitude of Ethereum cofounder Vitalik Buterin who does not give out free Ethereum to the public had changed after the launch of Tron Arcade that provides seed fund for developers with its investment of $100 million in the project.

The controversy surrounding the release of Ethereum Constantinople last month and how it was postponed as a result of the position of some developers that other hard forks would be launched. With the understanding of what this could cost the Ethereum network, it was postponed to avert what happened to Bitcoin Cash during its hard fork in Nov 2018 from happening to the coin.

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Cryptocurrency

Factors that Promotes the Surge in Crypto Crime

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Factors that Promotes the Surge in Crypto Crime

One of the reasons why some governments and private investors fight against the adoption of crypto as a financial instrument, irrespective of its increase in adoption is because of its anonymous nature and the possible use of it in crime related activities.

This fear could be seen as real since data had shown that the rate of crypto theft had surge by more than 7 times between 2016 and 2018. However, there are factors that have encouraged it which includes:

1) Patronage of dark and deep web: most of the private data that one could never imagine could be accessed easily through the activities of sellers in the dark and deep web. This has given hackers an easy access to information that could make an operation successful.

2) The inadequate laws for crypto crime offenders: most countries do not have sufficient laws that could be used to prosecute a cryptocurrency crime offender. This has made offenders in most cases to admit the crime, since the penalties could be lower when compared to a crime committed with fiscal cash.

3) Delay in accessing the right information: the anonymous nature of cryptocurrency could make a victim, to pay hackers and remain quiet till the money had been removed from the market. The continuous possibility of creating an unlimited number of accounts with decentralized exchanges makes it hard for the offenders to be caught easily.

4) An avenue to make quick money: some of this data could be sold by an insider since research has shown that more than 15% of hacking activities are due to information that an insider sells to outside users. Cryptocurrency makes such transaction to remain anonymous and the seller could keep the money raised for some time before cashing out.

5) Rise in knowledge: some people want to test the viability of the knowledge they had acquired on real products. This quest makes it easier for people to continuously involve in crypto crimes.

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