PRICE CHANGE: WTD/YTD
- BTC ($10,546): -1% / +181%
- ETH ($225): -6% / +69%
- LTC ($99): +9% / +226%
- XRP ($0.33): +4% / -7%
- Crypto Market Cap ($288B): -0% / 129%
- BTC Dominance: 65%
THIS WEEK IN CRYPTO
- Bitcoin fell below $10,000 this week after the US Senate Banking Committee held a hearing about Facebook's plan to create a cryptocurrency called Libra. David Marcus, head of Facebook's blockchain subsidiary, answered lawmaker questions around the tech giant's involvement in the governance of the cryptocurrency and privacy concerns. The two-hour hearing focused heavily on Facebook's historical missteps in privacy rather than the specifics of the crypto project itself. Marcus noted that the Libra Association backing the crypto has other members including PayPal and Visa, who would keep Facebook's power over the network in check. Marcus also said that Facebook had no intention of competing with sovereign currencies, and plans to work with the Federal Reserve to ensure it won't affect monetary policy. Link.
- Just days after President Trump tweeted about Libra and cryptocurrencies it was reported the SEC is examining whether Facebook's planned cryptocurrency, Libra, has a structure that effectively makes it an exchange-traded fund because it is backed by a basket of currencies. If the SEC decided that Libra's design makes it an ETF, Facebook would need the regulator's approval to launch the project. Link.
- US Treasury Secretary Steve Mnuchin held a press conference about Libra and cryptocurrencies and cited concerns about the potential for money laundering and other illicit activities. Mnuchin mentioned that cryptocurrencies would likely need to comply with federal banking regulations, and that any cryptocurrencies would need to fully work with regulators before receiving approval. Link.
- Former CFTF Chairman Gary Gensler said Libra was a security in remarks to the US House of Representatives. Gensler chaired the CFTC from 2009 to 2014. At the heart of Gensler's argument is Libra's structure: Libra is intended to act as a stablecoin with its value pegged to a basket of sovereign currencies and government bonds. Collateral earned on this basket (referred to as the Libra Reserve) would be distributed to members of the Libra Association, who will be given Libra Investment tokens. Gensler argues that Libra Reserve is a pooled investment vehicle making it a security, thereby implying that Libra itself is a security. Link.
- A new paper from the IMF, called "The Rise of Digital Money," suggests that cash and bank deposits could be left behind as digital money and fiat-pegged cryptocurrencies see greater adoption. Technology companies are increasingly competing with large banks and credit card companies and may provide a more convenient means of payment. Banks may be able to stage a fight against e-money, but the IMF warns policymakers that some disruption is likely within the banking industry. Link.
- Crypto futures exchange CoinFLEX, backed by Polychain Capital and investor Roger Ver, is set to launch its first initial futures offering (IFO) this week with Polkadot's DOT. Some FLEX users will have access to the IFO at a discount to the latest $1.2 billion valuation of DOT. Link.
- Binance, one of the world's largest crypto exchanges by volume, launched a British pound-pegged stablecoin (BGBP). Binance Jersey, the European subsidiary of Binance, launched in January and offers fiat-to-crypto trading to European traders and offers 9 cryptocurrencies tradable against two fiats -- GBP and euro. Link.
- Coinbase Bundle, the bundling product launched in September 2018, is shutting its doors. The product was intended to make it easy for users to purchase a market-weighted basket of cryptocurrencies with as little as $25. At launch the Bundle included bitcoin, bitcoin cash, ethereum, ethereum classic, and litecoin. Link.
- Blockchain-based game studio Horizon Games raised $3.75 million in a seed round led by Initialized Capital, with participation from investors like Coinbase Ventures and Polychain Capital. Horizon Games is building an ethereum-powered game called "Skyweaver," which is a blockchain-based competitor to "Magic: The Gathering". The company is also building a blockchain-based competitor to "Hearthstone," which currently has over 100 million registered users. Blockchain technology allows Horizon to easily manage and scale the collectible cards used in its games, and provides a structure for players to be rewarded cards for playing and winning. Link.
- Crypto exchange Binance introduced wallet changes recommended by the Stellar team (XLM) and inadvertently earned $775k for staking since August 31, 2018. Binance announced it would share that revenue between all XLM holders in the Binance community, and has subsequently decided to add staking support for XLM. Link.
- According to a new report the Lightning Network has removed 2.22 bitcoin (~$23,400) connected to dishonest nodes since November 2017. The Lightning Network is designed so that when a thief attempts to steal funds on the light network and is caught, they lose all the money they tried to steal and any funds in their relevant channels. The 241 suspected nefarious transactions represent only 0.7% of the current number of lightning channels. Link.
- The Japanese government is reportedly leading the development of a SWIFT-like network for crypto payments to combat money laundering. SWIFT is a messaging system used by banks for money transfers around the world. The government aims to launch the network in the next few years. Link.
- Coinbase is now sharing more information on trading behavior of its largest customers, providing retail investors with increased transparency and price signaling. The exchange is sharing info on users with a Coinbase balance in the top 10% of that asset and counting how many users in that pool have increased or decreased their positions over the last 24 hours. Link.