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Rumble Secures $775 Million Strategic Investment from Tether

Rumble, a video-sharing platform and cloud services provider, announced on Friday that it has secured a strategic investment of $775 million from Tether, a blockchain-enabled platform. The news caused Rumble’s shares to surge by 43.7% in after-hours trading.

Following the deal, Chris Pavlovski, Rumble’s chairman and CEO, will maintain control of the company, with Tether taking a minority stake in Rumble’s common stock. However, Tether will not have the right to appoint any members to Rumble’s board.

Rumble also revealed plans to use part of the investment to launch a self-tender offer for up to 70 million of its common shares. The transaction and tender offer are expected to be completed by the first quarter of 2025.

The move follows a broader surge in cryptocurrency enthusiasm, partly driven by political developments, including former President Donald Trump’s pro-cryptocurrency stance and his proposal for a U.S. bitcoin strategic reserve.

 

Tether expands into tokenizing stocks and bonds with new stablecoin initiative.

Tether Holdings Ltd., the largest digital asset company globally, is making a significant move into the world of tokenization. Known for its stablecoin, Tether, the company is now venturing into the tokenization of stocks, bonds, funds, and commodities through its new platform, Hadron. Launched recently, Hadron is designed to help users convert a variety of assets into digital tokens, ranging from stablecoins pegged to fiat currencies to tokens backed by commodities and other collateral forms. This expansion into tokenized financial products represents a new frontier for Tether as it broadens its influence within the financial and digital asset space.

The new platform, Hadron, is aimed at businesses and governments, offering them a secure and efficient way to digitize and trade assets. According to Tether, this shift toward tokenization is expected to bring significant benefits, including faster transactions and lower costs. By converting traditional assets into digital tokens, Tether aims to streamline the trading process, allowing these assets to be easily moved across blockchain networks. This can provide enhanced liquidity and greater accessibility for a wide range of asset classes, making them more tradable and transferable on the digital ledger.

The concept of tokenizing traditional assets like stocks, bonds, and commodities isn’t new, but it has been gaining traction as blockchain technology becomes more mainstream. By leveraging blockchain’s inherent security and transparency, tokenization can potentially revolutionize how financial assets are exchanged. The digital tokens representing these assets can be traded quickly, bypassing the need for intermediaries and reducing transaction times. Additionally, blockchain technology enables seamless transfers from one cryptocurrency wallet to another, making the process more efficient and less costly compared to traditional methods.

For Tether, this move represents a natural extension of its existing stablecoin business. The company has long been a key player in the cryptocurrency space, and now, with Hadron, it aims to address a broader market by offering digital asset solutions for a wider range of financial products. As the platform evolves, Tether anticipates that tokenization will become an increasingly important tool for businesses and governments, helping them tap into the growing digital economy. Whether this will disrupt traditional financial markets or simply complement them remains to be seen, but Tether’s foray into tokenizing assets marks an important step in the ongoing evolution of the financial world.

Bitcoin Dips Below $61,000 on US CPI Report, While Altcoins Hold Gains

The cryptocurrency market saw mixed movements on Friday, October 11, as the US Consumer Price Index (CPI) data reported a higher-than-expected rise. This data influenced trading trends, causing Bitcoin to dip by about one percent on both domestic and international exchanges. At the time of this report, Bitcoin’s price stood at $60,576 (around ₹50.8 lakh) on global platforms, per CoinMarketCap, while on Indian platforms such as CoinSwitch and Giottus, the price was slightly higher at $61,452 (approximately ₹51.6 lakh).

According to the CoinSwitch Markets Desk, Bitcoin’s performance followed a string of four consecutive downward days, but the crypto saw a brief two percent rise just before the day’s close. This price fluctuation was largely attributed to the US CPI data, a critical metric that shapes the Federal Reserve’s stance on potential rate adjustments. Despite a year-over-year decrease in the CPI, the figure surpassed market expectations, sparking uncertainty and a subsequent dip in Bitcoin prices.

Ethereum, the second-largest cryptocurrency, managed a slight increase amidst this volatile period. ETH’s value rose by just over one percent, trading at $2,407 (around ₹2,02,145) on global exchanges, as tracked by CoinMarketCap. On Indian exchanges, the token showed a higher value, priced at $2,438 (around ₹2.04 lakh), according to Gadgets360’s crypto price tracker.

In the wake of this CPI report, most altcoins retained their recent gains, displaying resilience amid Bitcoin’s decline