“Success consists of going from failure to failure without loss of enthusiasm.”
- Winston Churchill
Friday is here folks! We all made it and it's yet another week down! 😄 Be sure to make full use of the weekend you've worked so hard to earn. Today is also Wolverine's birthday! And by Wolverine, I meant the actor Hugh Jackman. 🤭 Be sure to send him your well wishes on Instagram. 🎁
In today's newsletter, we will be covering a new major shareholder in the South Korean cryptocurrency exchange Bithumb, Coinbase Pro's latest and first ERC-20 listing and crypto and stock trading app Robinhood is now live in a new U.S. state.Today, we are also covering Tether (USDT) in our weekly deep dive!
Hope you enjoy today's newsletter, and don't forget to answer the polls down below too (it's about zombie apocalypses)! Happy reading! 📚
Still processing yesterday's loss
There has been minimal movement in the past 24 hours in the crypto sphere. Total market capitalization hovered between ~$202.5 billion and ~$197 billion. Overall, total market capitalization remained at ~$202 billion from yesterday. 😴
Similarly, BTC hovered within a tight range today, between ~$6,240 and ~$6,320. It is currently trading at ~$6,300, registering a very slight ~0.29% gain from yesterday. ETH has fallen below the $200 mark once again, currently down ~2.9% and is trading at $195. The last time ETH was at these levels was back in mid Sept this year. 😥
Most of the other cryptocurrencies also hovered within a tight range and either saw gains or losses in the 1-4% range. Notable mover of the day is ZRX, currently up ~15.35% likely due to its Coinbase Pro listing(read more about it below). 📈
On 11 Oct, the largest cryptocurrency exchange in South Korea, Bithumb, sold about 38% of its total ownership to BK Global Consortium, a blockchain investment firm formed by BK Global, a plastic surgery medical group in Singapore, for $350 million. 💰
BK Global Consortium is buying over the 38% stake from the current largest stakeholder of Bithumb, BTC Holdings Company, who agreed to sell 50% + 1 share of its current 76% stake. Hence. this move will make BK Global Consortium the major shareholder of Bithumb once the transaction is executed. This acquisition deal is valuing Bithumb at about $880 million. 🤑
Coinbase has added its first Ethereum-based token, 0x (ZRX) to its trading platform, Coinbase Pro. 😄
Coinbase made an announcement that it would enable trading for ZRX/USD, ZRX/EUR and ZRX/BTC at around 5:00 A.M UTC on 11 Oct. While ZRX trading will be accessible for users in most jurisdictions, it would not be initially made available for residents in the state of New York. It would also not be available on the Coinbase iOS and Andrioid apps as of yet.
This new ZRX listing on the Coinbase Pro platform marks the first of potentially many more ERC-20 tokens to be given support on Coinbase. 💪
The trading app for both cryptocurrencies and stocks which boasts of more than 6 million customers, Robinhood, has launched and is now available in Ohio. Residents in the state of Ohio can now trade various cryptocurrencies commission-free through the Robinhood app. Some of the cryptocurrencies available on the app include BTC, ETH, LTC, BCH, ETC and DOGE. 🙌
The state of Ohio now joins the likes of Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, Pennsylvania, Texas, Utah, Virginia and Wisconsin, who can enjoy commission-free crypto trading services through Robinhood.
The Financial Stability Board (FSB) recently released a report claiming that at this point in time, cryptocurrencies do not pose a risk to global financial stability but suggests that it continues to be monitored. 👀
According to a report by blockchain security firm, CipherTrace, hackers have stolen $927 million from cryptocurrency exchanges and other platforms in the first 9 months of 2018 alone. 💸
Speaking of hackers...apparently, the hacker who stole roughly $40,000 from SpankChain, the adult industry focused project, has returned the stolen funds. The hacker returned the 165.38 ETH, after speaking to the SpankChain CEO Ameen Soleiman on the phone. 🤷
Crypto deep dive: Tether
Market Capitalization Rank: 8th
Type: Stablecoin - at type of cryptocurrency that is meant to hold stable values. For example, Tether (USDT) is pegged to the USD and 1 unit of USDT is meant to trade at $1 at all times.
How it happened ⚙️
Tether was originally named "Realcoin" back in July 2014 by its co-founders Brock Pierce, Reeve Collins and Craig Sellars as part of a blockchain startup and first issued tokens in Oct that year. In November that year, CEO Collins renamed it to "Tether". By January 2015, Tether started trading on the cryptocurrency exchange Bitfinex. Turns out, the CEO of Bitfinex, Jan Ludovicus van der Velde, was also the CEO of Tether Holdings Limited
Why people love it 😘
USDT is stable and digitized, which allows it to be used as a global medium of exchange that can be easily used for cross-border transactions.
Due to its nature (1:1 peg to USD), USDT can be used as a store of value due to its reduced volatility. For example, in countries with tighter crypto exchange regulations (withdrawals), users can simply convert their cryptos into USDTs and store them with exchanges until a solution is reached, instead of having to hold the more volatile cryptocurrencies.
Due to its stable price, USDT provides a reference point for users in the crypto community and as a measurement unit to compare market values.
Why people doubt it 🤔
Tether has been criticized in the past for not actually being fully collateralized. It even ended its business relationship with its audit firm, Friedman LLP, back in Jan this year before it was supposed to undergo its audit.
Tether is facing increasing competition, some other USD stablecoins with greater levels of transparency. Some competitors include TrueUSD (TUSD), nUSD (NUSD) and Gemini Dollar (GUSD).
Tether has been rumored to have been manipulating/ protecting the price of BTC during downturns by using USDT to purchase BTC to create artificial price floors.
Poll of the Day
On a scale of 1-10 (10 being super confident), how confident are you at surviving a zombie apocalypse? 🧟