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secure in your knowledge

Your daily newsletter for August 7, 2018
Search for security
"Man maintains his balance, poise and sense of security only as he is moving forward."
- Maxwell Maltz
Securely fastened for the ride
Today, we thought we might add a bit more concepts on security tokens since Overstock's tZERO closed its security token offering last night (and also because it was kinda a slow news day 😛) Let us know what you think in the poll below!
Today, we experienced a relatively quiet day in the crypto markets. BTC and ETH hovered around the ~$6,960 and ~$408 regions respectively for the most part; most top 10 were trading sideways or just slightly up throughout the day.

Amongst them, the biggest mover was IOTA 👇, which saw an -11% price drop (as at 7AM ET). This is possibly due to the breaking news that smartphone maker Sirin Labs will no longer integrate the IOTA blockchain into their new “Finney” PC and smartphone – they chose Ethereum instead.

ETA: tZERO to security
After Overstock's tZERO ICO fell under scrutiny from SEC in March, they decided to switch it for a STO instead. Investors who have signed Simple Agreements for Future Equity (SAFEs) will have two days, until August 8, to remit funds for their place in this offering.

There are three major types of tokens most commonly known in blockchain today: payment tokens (now primarily used as a store of value), utility tokens (as its name implies), and the new kid on the block, security tokens.

Security tokens are digital assets that are subject to federal securities regulations (i.e. SEC approval in the US).They represent a fraction of ownership of its underlying asset, which can be equity in a company, debt, real estate or even let's say... a chair in a cafe (hey, it could be a really special chair? 😎)

As these tokenized ownership stakes (recorded on the blockchain) can be marketed globally, it would allow anyone, simply with an internet connection, to trade them. With this global audience, there would be larger investor and liquidity pools, thereby encouraging more market activity – some posit that the increased competition would also be healthy for markets and drive growth.

Security tokens may also provide liquidity to the currently illiquid private asset market (a trillion-dollar industry). The smart contract functionality would reduce the need for brokers (middlemen) and thus transactional cost savings can be passed on to end users. 

Right now though, there are still some limitations to security tokens, some of which include needing accredited investor status – which is not feasible for many. As regulations change and grow, and as the blockchain community works towards making things like atomic swaps and interoperability a possibility... Could it be a bright future for security tokens?

Job security
Bitmain, the world’s largest Bitcoin miner and mining equipment maker, has announced plans to construct a new blockchain data center and cryptocurrency mining facility in the city of Rockdale in Milan County, Texas. The $500 million facility is set to be up and running within two years, and is estimated to create 400 jobs for the local community 🛠; they have already begun recruiting efforts.

Securing your funds
The Japanese Virtual Currency Exchange Association (JVCEA), comprised of 16 state-approved cryptocurrency exchanges, wants to become the “Certified Fund Settlement Association” of Japan, after applying to their country’s Financial Services Agency on Aug 2.

Upon approval, the JVCEA would be able to act as a self-regulatory body for Japan’s cryptocurrency exchange industry and enforce the rules for exchanges they had previously set to roll out based on their draft back in June. This includes a ban on insider training, the prohibiting of accepting newer privacy coins, and mandatory audit reports submitted to the JVCEA 🤟

According to the latest data from coinatmradar, there are now close to 3500 Bitcoin ATMs installed globally. Currently, only about 52% of them support coins other than BTC.

The rate at which more ATMs are sprouting up is increasing too 📈: In 2017, we saw the number grow 211.5% (from 988 to 2090 ATMs) and that's already 165.6% from the 7 months in 2018. More of these ATMs are being installed and used around the world each day, seemingly unaffected by this bear market. As of Aug 6, about ~8.29 ATMs are being installed per day.

Other attractions
  • LevelTradingField, an online futures brokerage platform, is expected to launch a cryptocurrency derivatives exchange “CADE” on the Ethereum blockchain, thereby allowing clients to reap the benefits from the price movements of the underlying tokens without actually owning them.
  • Coinbase is back in Wyoming after a three-year hiatus.
  • Robinhood lists Ethereum Classic as the sixth cryptocurrency to be on their platform.
  • Unpatched MicroTik routers, numbering 200,000 of these ISP-grade routers worldwide, were unwittingly turned into Monero miners. Affected crypto-jacked routers did not patch with a security fix offered in April earlier this year, according to a study by SpiderLabs.
Poll of the Day
Security tokens: Yay or Nay? How hot are you on them?
Are they great? Are they dumb? It's one of the more divisive topics recently – are they worth the hype or is it a way of fitting the "old system" on crypto?
What you said
Yesterday's sentiment on bullishness based on the weekend's development was 6.8. That's kinda a mixed bag. 77% of people are HODLers 😉18% are buying the dip, and 5% are actively trading. You know what? Nobody is selling! You BULLS 🐂 (but then again, we're all self-selected on this newsletter, lol.)

I asked why, and many of you were super optimistic: We think cryptocurrency is the future, and are confident that crypto is a solution that has strong foundations and that we're all going up.

Generally, the feel is that the market is too unstable, so hodling is the best play; some of you are long-term bullish, so  you're buying the dip. Someone said they don't have any more fiat to enter, while others said they aren't traders, so just HODL whatever they've got 👍 A few BTC maximalists say: There are only 21 million, duh!
See you tomorrow!
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