21.10.2020

Company Reveals Crypto Marketplace ‘Is Here to Stay’

More than a week ago, the popular cryptocurrency marketplace Purse.io abruptly announced its decision to dissolve. “We’ve made the very difficult decision to dissolve the company,” Eduardo Gómez wrote at the time. “We’re grateful for the opportunity afforded by our supporters to build products and infrastructure for the cryptocurrency community.” The crypto community wasn’t too pleased with the announcement, as the company had been around since 2014. Purse.io allowed millions of people to leverage cryptocurrencies like BTC and BCH, in order to purchase products on Amazon. Purse.io customers often saved customers up to 20% or more by using the platform and many digital currency proponents used the service regularly.

Purse.io Returns: Company Reveals Crypto Marketplace 'Is Here to Stay'

On April 17, new.Bitcoin.com reported on the crypto marketplace Purse.io announcing the company would dissolve. Six days later, Purse revealed that the team is reconsidering the decision and explained that well known bitcoin advocates reached out with interest in acquisition.

Following the announcement, Purse.io representative Eduardo Gómez detailed on April 23, that the company was rethinking the decision to dissolve. “Since the announcement,” Gómez said. “We have received an incredible outpouring of support from the community, causing us to reconsider our decision. Several parties – including well known bitcoin advocates, high volume users, and established cryptocurrency companies – reached out with interest in acquiring Purse.io.”

Gómez also tweeted:

Good news everybody. It looks like Purse is here to stay.

The exact details of the deal are unknown at the time of publication, but it currently assumed that Purse.io may survive after all. Social media and crypto forums show that some people are suggesting that Bitcoin.com’s Roger Ver helped out. Many onlookers cite the recent Bitcoin.com Official Youtube video called “How to Beat Phil Hellmuth at Poker Using Bitcoin Cash.”

“Purse is too important for the ecosystem to let it disappear so I don’t think it’s going anywhere,” Ver stressed in the video. “I’ve been in talks with them a lot, so stay tuned for some more news on Purse.io.” On the weekly news show, Ver reaffirmed what he said and stated that Purse.io is “not going anywhere.”

Previously Crypto-Only BlockFi Adds Cash On-Ramp Through Silvergate Partnership

BlockFi, a financial company focused on cryptocurrencies, says it has enabled a new feature that will let customers use cash to buy bitcoin. 

Previously, the Jersey City, N.J.-based crypto lender only allowed customers to bring digital assets onto its platform, such as stablecoins linked to the U.S. dollar, Chief Executive Zac Prince said in a phone interview. The system relied solely on “crypto payment rails,” he said.

Starting Tuesday, customers can send cash to BlockFi via wire transfers through a partnership with Silvergate Capital, a bank holding company based in La Jolla, Calif. The publicly traded Silvergate is one of the few commercial lenders willing to do business with cryptocurrency-focused companies.

The cash transfers can also be used to deposit money with BlockFi and earn interest, currently set at an 8.6 percent annual rate – some 860 times higher than the 0.01 percent rate offered on a JPMorgan Chase bank account. Unlike Chase, BlockFi isn’t a bank, however, so the accounts don’t come with federal deposit insurance protection. But also unlike Chase, BlockFi lets customers choose an option that lets them get the interest paid in bitcoin (BTC).

“In an increasingly low-yield and volatile market, opportunities like earning 8.6 percent on stablecoin deposits with BlockFi stands out in the crypto sector,” Prince said in a statement. “Adding support for inbound wires will facilitate increased liquidity on BlockFi’s platform, which flows through and improves liquidity in the broader crypto ecosystem.”

More individual investors are becoming interested in cryptocurrencies, especially following the recent outperformance of bitcoin compared with U.S. stocks. Fears related to the economic impact of the spreading coronavirus have sent the S&P 500 Index of large U.S. stocks down 15 percent on a year-to-date basis. Bitcoin, by contrast, is up 13 percent in 2020.

Prince said BlockFi started developing the wire-transfer capability after being inundated by “requests every day from our existing clients, and also from folks who aren’t already cryptocurrency owners.”

BlockFi, founded in 2017, announced in February it had raised $30 million in fresh funding from investors including Valar Ventures, Morgan Creek Digital and Winklevoss Capital. The closely held company disclosed last month it had $650 million of assets on its platform, including cryptocurrency-backed loans, and that revenue surged 20-fold in 2019.

The company said in Tuesday’s statement it recently obtained a money-services business license from the state of Florida, allowing residents of the state to use BlockFi’s trading service and interest accounts.

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