PRICE CHANGE: WTD/YTD
- BTC ($10,067): +7% / +40%
- ETH ($227): +20% / +73%
- LTC ($77): +8% / +85%
- XRP ($0.28): +12% / +46%
- Crypto Market Cap ($287B): +10% / +50%
- BTC Dominance: 64%
THIS WEEK IN CRYPTO
- DeFi startup Fairmint is launching a Continuous Securities Offering (CSO) platform, a new financing model that lets users invest in startups based on their revenue performance. Companies raising money through a CSO will commit putting a certain percentage of future revenue into a reserve for a set period of time. Investors can buy claims to the reserves using ERC-20 tokens. Once the company decides to end the CSO, it is required to buy back all the outstanding tokens at the price paid for the final token minted. Fairmint believes CSOs can replace ICOs and traditional venture capital. The first CSO is being launched on Feb 19th, and Fairmint itself will be the token issuer. Fairmint raised $1.2M in a pre-seed round last year. Link.
- US Fed governor Lael Brainard said the US Central Bank is researching blockchain tech and the use of digital currencies, including the potential for issuing its own digital currency. In 2018 Brainard had said there was no need for a Fed-issued digital currency, but the announcement of Libra has made the Fed reconsider its position. Link.
- Mastercard's CEO said it pulled out of the Libra project over a lack of business model and concerns with AML / KYC controls. Mastercard left the Libra project back in October along with Visa. Link.
- There is now over $1 billion of money locked into decentralized Finance (DeFi) applications and protocols. Maker, the ethereum-based lending protocol, is the market leader with nearly 60% dominance. Link.
- SEC commissioner Hester Peirce proposed a three-year safe harbor period for crypto startups looking to issue tokens. Companies would have three years from their initial token sale before the SEC determines whether they need to comply with the agency's securities laws. If a protocol becomes decentralized enough, the SEC would consider it to not be a security. Link.
- Lightning Labs raised a $10 million Series A led by Craft Ventures with participation from investors like Ribbit Capital, RRE Ventures, Slow Ventures, and M13. The company has also launched a beta version of Lightning Loop, its first financial product that provides the on-and-off ramp for users to move funds between the Lightning Network and the bitcoin network. Lightning Loop allows users to dynamically adjust the amount of bitcoin in their Lightning wallet. Link. Link.
- Crypto custodian Anchorage becomes the first institutional custodian to offer custody and trading support for Cosmos. Link.
- Merchants are seeing an increase in bitcoin usage. BitPay processed $1 billion in crypto transactions in 2019 while Coinbase Commerce processed $135 million. Bitcoin made up the majority of payments. Link.
- Crypto custodian BitGo has partnered with financial services provider SettleBit to let institutions trade directly from their BitGo accounts. Clients can now instantly get a price offer matched with a liquidity network and have real-time settlement, all while their funds remain secure in cold storage. Link.
- Blockchain settlement startup Clear raised $13 million in Series A funding led by Fidelity International's venture capital arm, Eight Roads. Clear gives telecoms a platform to collaborate and settle payments through blockchain automation. Link.
- Tron founder and CEO Justin Sun had dinner with Warren Buffett after paying a record $4.57 million in May 2019 at an auction for The Glide Foundation. A spokesperson for Tron Foundation said that Buffett, who is known to have a pessimistic view on cryptocurrencies, said that "blockchain has value". Link.
- Ethereum development studio ConsenSys announced it was dividing its software development and investment teams and consequently reducing headcount by 14%. The software side of the business which focuses on developer tools and infrastructure, is reportedly seeking to raise $200 million of capital. Link.
- ConsenSys also announced it was buying muni-bond broker-dealer Heritage Financial Systems, allowing it to offer newly tokenized municipal bonds through its ethereum-based operating system, Codefi. Blockchain tech can disrupt the muni market by automating repayments and tracking obligations and bond transfers on the secondary market. Link.
- Blockchain payments startup Paystand raised $20 million in Series B funding. The company uses blockchain technology to enable venmo-like payments for enterprises in a zero-fee subscription model. Paystand helps companies save over 50% on the cost of accepting payments and processing invoices. Paystand was founded in 2013 and has over 160,000 businesses transacting on its payment network. Link.
- US government will be auctioning off more than 4,000 bitcoin - valued at more than $37 million - on February 18th. The government held its first auction in the summer of 2014, which saw investor Tim Draper win nearly 30,000 bitcoin. Link.
- A new Minecraft server allows players to pay $1 in bitcoin to find hidden treasure and receive a blockchain reward. Link.
- Blockchain Capital is reportedly raising $250 million for its fifth fund. The fund expects to invest 75% of capital into equity of companies and the remaining 25% into crypto assets. Link.