Cheers to the weekend! 🥂 It was well deserved, everyone. It's been a pretty good month for the crypto space, so let's hope this spills over to this weekend too! Today in history, the wall that divided East and West Germany for 28 years, the Berlin Wall, was opened. 👐 On that day, more than 2 million people from East Berlin visited West Berlin in a celebration that one journalist described as "the greatest street party in the history of the world." 🕺💃🏻
In today's newsletter, we will be covering the Korean Bar Association lobbying its government to create blockchain regulation, IBM partnering with Seagate to ensure computer hard drive authenticity and the U.S. SEC is charging the founder of EtherDelta.
Enjoy today's newsletter, and please don't forget to answer the polls down below too! (It's about decentralized crypto exchanges today!) It's a great way for us to interact with you, and it's always nice hearing your thoughts. 💭 Happy reading! 📚
It needs to evolve
Another small red day for the cryptosphere, as total market capitalization dips from ~$216.3 billion to ~$214.5 billion. Similar to the day before yesterday, most cryptocurrencies saw losses in the ~1-3% range. BTC dominance is currently at ~52.1%, dropping ~2% from one month ago. 👀
BTC also saw a small ~0.85% loss, and is currently trading at ~$6,430. It is once again seen testing its 21-day EMA support line. The Bitcoin Volatility Index continues to estimate ~1.55% for BTC's 30-day volatility, and so we are likely to see this continue through the weekend and expect small price movements. The converging EMA lines further indicates the low volatility experienced by BTC in recent months. With no fundamental change to the crypto space, this will likely continue. 😔
The Korean Bar Association, the entity that governs South Korean lawyers, lobbied its government to quickly establish a legal framework for the blockchain industry. 🔊 It called on its government to "quickly" introduce blockchain regulations so that the industry can develop and that investors can be protected. 👍
The president of the Korean Bar Association, Kim Hyun, said at a news conference held at the parliament that the government should "break away from negative perceptions and hesitation, and draw up bills to help develop the blockchain industry and prevent side effects involving cryptocurrencies." 😄
Taking it to the next level
Multinational information technology company, IBM, is partnering with its long time hardware manufacturer, Seagate, to ensure the authenticity of computer hard drives through blockchain technology. 🤖
They will be logging Seagate-produced drives, now equipped with a physical marker that includes an electronic key, on the IBM Blockchain Platform. 🗝️ The electronic key can be used at any time to check with the permissioned IBM blockchain whether the product being sent down the supply chain is still the authentic drive that Seagate produced. This will help block counterfeits from being utilized in data servers or otherwise distributed to end users expecting genuine products. 😄
Seagate has been a trusted supplier for IBM for several years and in that timehas provided hard drives for IBM to build into server platforms. 🤝 This partnership will build upon that, and ensure every hard drive in a server can be traced back to its manufacturing point while simultaneously eliminate much manual administrative cost. 👍
The U.S. SEC has charged Zachary Cohen, the founder of decentralized exchange (DEX), EtherDelta, for operating the unregistered exchange. 👮
EtherDelta, is a DEX crypto trading platform that allows users to trustlessly trade Ethereum-based tokens without the need to register an account and having to entrust their funds to an exchange-controlled wallet. Instead, all trading is managed via smart contract. 😲
According to the SEC, EtherDelta has "the user interface and underlying functionality of an online national securities exchange", thereby requiring it to be registered. ✒️ Thus, the EtherDelta platform was technically an unregistered securities exchange that illegally allowed users to trade tokens that the SEC considers to be securities under federal law. Coburn paid $300,000 in disgorgement, along with $13,000 in prejudgment interest and a $75,000 penalty. He has not admitted or denied the SEC’s findings. 💸
Crypto deep dive: Tezos
Market Capitalization Rank: 18th (~$797 billion)
Consensus Algorithm: Proof-of-Stake (PoS)
How it happened ⚙️
Tezos raised $232 million in its 2017 ICO, marketing itself to be "the world's first self-amending cryptocurrency." The project initially experienced some controversy over the use of the raised funds, but was still able to launch its Betanet and Mainnet on June 2018 and Sept 2018 respectively.
Why people love it 😘
The Tezos blockchain is comprised of 3 layers: Network, Transaction and Consensus layer. These layers are modules which can be moved in and out seamlessly, to allow for easy upgrading. Upgrades to the protocol can thus be made without the need for a hard fork.
Governance is decentralized due the the PoS consensus. Direction of the Tezos blockchain is decided by the Tezos community. For example, a developer will propose a protocol upgrade, and Tezos tokens holders can vote to either approve of disapprove of it.
Tezos has a strong developer team. Most of them are Ph.Ds in Computer Science.
Why people doubt it 🤔
The negative press that it was plagued with in the beginning with regard to its delayed token issuance and subsequent lawsuits stained its reputation. It'll take extra for it to recover from that.
Even if the Tezos protocol is technologically superior than other blockchains, adoption may still not take off. Tezos has much competition as an infrastructure coins.
Tezos' management team is not the strongest.
Merchant payment service provider Square's recently released Q3 shareholders report revealed that it made $43 million in Bitcoin revenue, accounting for ~5% of their total Q3 revenue. 💰
Federal Judge of the U.S. District Court for the Southern District of New York, Jed Rakoff, lifted the $30 million attachment initially granted against Charlie Shrem in his case against the Winklevoss brothers. 👀
Canadian bank VersaBank announced that its new cryptocurrency deposit box project has successfully completed its beta testing. It will soon be able to offer a virtual lockbox to crypto exchanges and crypto investment funds to store digital assets. 👌
Poll of the Day
How much do you agree with this statement: "The U.S. SEC mandating decentralized crypto exchanges (DEX) to register with them is too harsh" 💭
And...have you ever used a decentralized crypto exchange (DEX)? How was your user experience? And what are your plans for the weekend?Share with me in the polls! 😆
What you said
How much do you agree with this statement: "Artificial Intelligence (AI) will one day rule the world"
The average vote was only a 7.2. It's hard not to imagine the end game scenario to be one where AI becomes so intelligent to a point where we no longer have the power to control it. 😱
"Why do you think so?"
You guys said:
I don't know, but when ever i think about it seems so. - I feel you. 😔
It's a valuable tool - It definitely will be, if wielded and used correctly. Humanity has to be careful not to take it too far. 👍
AI will work for humanity. - It will, but what happens after that? 🤔 AI will only grow increasingly intelligent. That's an inherent feature of it. 😨
Slowly building our dependency as we speak, Siri how do you spell sheep - Hahaha I chuckled at this. 🤣
"Do you think that the dangers of AI outweigh the benefits of it?"
50% voted "Yes."
50% voted "No."
It's split right down the middle! This is a tough one for me, but I would say that although the benefits are great, it will come to a point where it gets dangerous. ☠️ That's where we will have to exercise restraint - this I'm not confident about because the human race is curious species. 😁
"Why do you think so?"
You guys said:
On the benefit side it will be a very huge boost to speed up things, we will learn a lot quicker what we are doing wrong & also lot of things which we have not yet thought of. and its inevitable. - I share the same sentiments. Grim, but hard to dispute. 😉
Less errors. - True, but I think we should proceed with caution. 🙃
More intelligence = more good to the world - 🤓
Thank you all for reading thus far! Catch you back here again on Monday! 💙
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