"The mind moves in the direction of our currently dominant thoughts."
- Earl Nightingale
It was an eventful weekend, wasn't it?
Right after I sent out our newsletter on Friday, there were some amazingly huge news announced 🙌 Just when we were talking about progress in the space, we got some bigs moves.
About the data glitch on Friday night, this was not a hack. I repeat, this was not a hack. We are really sorry for time traveling to the future where we moon. We are really sorry for the confusion – this was due to a price calculation error on Tether which caused any listing with a Tether market to become artificially inflated; we will publish a longer post-mortem soon on what exactly happened and what we did to make sure it won't happen again.
Over the weekend, Intercontinental Exchange (ICE), parent company to the New York Stock Exchange, announced its plan to co-create Bakkt, an integrated platform where digital assets can be securely bought, sold, and stored. This is a joint effort 🤝 with Starbucks, Microsoft and BCG.
Some media mistakenly thought this means that Starbucks would accept bitcoin for frappes. However, Bakkt will facilitate BTC-to-fiat trading and conversion (and offer one-day physically-deliverable Bitcoin futures contracts); i.e., you can exchange BTC on Bakkt into USD to use to buy your coffee ☕️
Chairman of ICE, Jeffrey C. Sprecher, says this is "bringing transparency and trust to previously unregulated markets". Uh, someone please tell him about the concept of trustlessness, please.
Actually, someone did
Caitlin Long, a Wall Street veteran, puts forth a strong argument about how ICE might actually bring fractional reserve banking system practices to crypto through leverage financialization – or what she calls "the bad kind of leverage", which is non-asset-backed, paper claims to an asset. She believes that these "paper versions... can suppress the underlying asset's price by offsetting the real-world scarcity of the asset".
Basically, she worries that all these paper claims could end up like banking system credit with these players piling in on Bitcoin. Eek 😓
Adding to the excitement
Coinbase announced plans to expand its custodian service to include 40 more digital assets. Notable additions include XRP, EOS, NEO, XMR and DASH. Its existing custodian service supports 4 cryptocurrencies (BTC, BTC, ETH, LTC), charges a monthly handling fee of 0.1% and $100,000 set-up fee, plus requires minimum $10 million storage. As mandated by law, though, institutional funds require a custodian to hold and protect their assets 😌
Despite the positive news, there hasn't been as optimistic a response in the market. BTC could possibly be testing the next support level at ~$6,800 – a previous resistance level we broke out off just this mid-July. However, other crypto saw a slightly stronger rally 💪 over the weekend.
It's also worth noting that trading volume on weekends has historically been lower 📉 than that of weekdays, translating to thinner order books and larger price movements and swings. This is especially so when our market is not yet mature, deep and liquid enough. For example, over the last month we saw weekend volumes dipping ~25% over their weekday volumes.
Moving assets possible again
Bithumb, South Korea’s largest virtual currency exchange by volume, resumed withdrawal and deposit services for 9 cryptocurrencies over the weekend 👏 This comes after the temporary suspension of services due to the end of June hack on the site, which saw hackers getting away with ~$17 million USD worth of cryptocurrencies. They will be resuming more services in due time, but is intentionally staggering it to ensure “a more stable service environment”.
Across the globe
Argo, the crypto mining firm, has raised $32 million in their London IPO.
NFL Players Association acquired a minority stake of SportsCastr, which runs FanChain (a token-backed platform), enabling active and former NFL players to provide commentary on sports and more.
Mt. Gox creditors have revised their policy ahead of rehabilitation: Focus is on simplicity, repayment in BTC/BCH, and more.
Madonna has partnered with Ripple to raise funds for orphans in Malawi.
Poll of the Day
How bullish are you feeling with the big moves over the weekend? 😈
Win? No win? Or dragged down by the current market conditions? Let me hear your thoughts! But remember – Think Long Term!
What you said
Seems like most of you are really nice and think we deserve a break on the weekends, love y'all 😍
On the OKEx clawbacks, it was split 60/40 for not losing trust in centralized exchanges as a result. I suppose the main reason cited is that they have made remedial actions in the face of this (enhanced their risk funds) and we can now spot and debate [issues] rationally. On the other hand, lots of people were not big fans of this, especially that users might impact other users; or what I found especially funny: "If i dont get anything from the income of an exchange, don't dump the losses on me either".
Others were way more relaxed, saying that any exchange can face lack of liquidity, whether centralized or not (yes, I read every message! 😉), or plain and simple: "That's life."
Someone got really pissed at us for "making a huge mistake" and using an "offensive profanity" (censored f-word) in our survey. Apologies for f... messing up – I'll be more careful next time.
See you tomorrow! 😍 our newsletter? Share with a friend! 😡 our newsletter? Spam your enemy!