Bcause’s Spot Market Set Become The “One Stop Shop” For Cryptocurrency Mining And Trading
Bcause LCC, a Chicago based crypto mining and exchange startup has stated that it will be launching its spot market in a couple of weeks, in spite of its operation under bankruptcy protection.
Thomas Flake, the Co founder of Bcause, has said that Bitcoin (BTC), Ether (ETH), Bitcoin cash (BCH) and Litecoin (LTC) will go live on the 23rd of May. In preparation to go live, Bcause has obtained money transmitter licenses in 8 states, with 20 additional pending applications. Some of the states include Texas, Illinois, Virginia, and Washington. There has also been an application for New York’s Bitlicense, but operations will not likely start anytime soon, because the process may take about two years.
Bcause LCC has also registered as a money services firm with the FINCEN (Financial Crimes Enforcement Network).
Earlier in the year, they also announced that Nasdaq’s technology will be used for matching, clearing, and surveillance of the market when trading commences.
“The One Stop Shop”
Bcause, which has applied to the CFTC (Commodity Futures Trading Commission) to be a designated clearing and contracts markets firm, ultimately aims to become a ‘One-stop shop’ in cryptocurrency trading and mining. Flake, withholding the name, said that Bcause is served by “a bank in Illinois”
The company got into bankruptcy proceedings in April, when the account of one of their suppliers of mining equipments was garnished (frozen). This caused a shortfall in the payment to utility Dominion Energy, its biggest creditor which they owe 1.5 million USD.
However, Bcause’s general counsel said the company will continue regular operations and restructuring, against speculated liquidation.
When Flake, was asked about the bankruptcy, he said:
“We continue to move forward with the process and at this point all creditors have shown a willingness to work together for a positive outcome.”
BCAUSE’S New CFO
Towards the end of last year, Bcause silently hired George Sladoje, COO at OMX commodities clearing company, a Nasdaq subsidiary and a former vice president of Chicago stock exchange, as its CFO (Chief Financial Officer).
Benefits To Miners
Bcause currently has a Virginia based data center where miners are hosted for clients. They believe that the combination of this service with spot and derivatives trading will increase confidence in consumers. They will easily sell mined cryptocurrencies on the Bcause platform via the spot market or on secure futures contracts to be sold later at good prices.
The Co founder, Flake, stated :
“You get rid of some of the uncertainty, which makes investors much happier. If you go from saying, ‘I don’t know what the price of bitcoin will be in nine months,’ to saying, ‘I’ll be able to liquidate it because I have options at $6,500 in December next year,’ suddenly, a lot of uncertainty is off the table.”
He added that this will make cryptocurrency mining a lot more appealing to finance institutions and that in this initial phase, they will not be mining cryptocurrency for themselves but only hosting customers that mine.
They are however looking into mining its own cryptocurrency in the future.
Currently, this data center consists of miners whose joint power capacity is about 50 megawatts, with mostly Bitmain’s Antminer S9 machines.
Low Power Demand
Flake, in a statement, said the mining power demand has been relatively low now when compared with the last year. He said:
“In the first quarter of 2018, we had to turn away $250,000 of contracts — we just didn’t have the capacity. In the last quarter of 2018, that demand dried out completely. But in the last six weeks, we started seeing one or two inquiries a week.”
He believes that when BTC rebounds to 7 thousand dollars, miner demands will “will take off again”
$500,000 Development Grant
Last year, the city of Virginia Beach granted 500,000 USD to Bcause for the development of the mining data center and to create jobs in the city.
- Source: First Appeared Here
- Published Time: 2019-05-07 21:46:00
The views and opinions expressed in the article Bcause Spot Market Launch Nears for Promising Crypto Exchange, Trading and Mining Project do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research..
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