Cryptocurrency Newsletter December 5th 2018
Despite some further sliding in the market there was some positive cryptocurrency news stories that developed this past week including some stories about Amazon supporting blockchain services, Dan Larimer discovering a new cryptocurrency idea, Coinbase adding a new feature, and a new cryptocurrency exchange raising millions of dollars from Fidelity and Nasdaq.
Users are now able to sign up for the Amazon Managed Blockchain preview. Amazon Managed Blockchain is a service that allows users to set up and manage a blockchain in a few steps. Using the Hyperledger Fabric blockchain is available now but support for Ethereum is “coming soon”.
Takeaway: As more people become more informed about blockchain use cases, more people should become interested in permission less blockchains like Ethereum. Endorsement from Amazon means a lot and it demonstrates that it is worth recognizing Ethereum. It is interesting that Amazon choose to work with Ethereum instead of competitors like EOS, Stellar, NEO, etc. It would also be interesting to know what steps are needed to make Ethereum available for Amazon’s Managed Blockchain service. Perhaps it will be supported once Ethereum solves a scaling solution.
Coinbase added a feature for users to withdrawal through Paypal.
Takeaway: Adding support for Paypal could ease the withdrawal process for users in case of demand surges like the one we saw in late 2017 / early 2018. Some people might view incorporating Paypal with a cryptocurrency business ironically because a key theme in crypto is for personal custody over your own money. There could be an event when somebody could transfer large sums of money from Coinbase to Paypal only to find out that Paypal froze the funds soon after the transfer. Ultimately it is up for the user to decide which method they should use to withdraw money. Paypal opening up another withdrawal method for Coinbase and should help their product offerings.
Dan Larimer stated in a Telegram group that he “stumbled upon a new set of tradeoffs for a potential crypto token and he has merely been exploring whether there is a market for those tradeoffs”.
Takeaway: Even though he also stated that it is a hypothetical token and that the token would not compromise EOS, some might be concerned that Larimer is thinking about a new cryptocurrency other than EOS. It is possible that new token would be airdropped to EOS holders, but the entire story is hypothetical. EOS holders would probably prefer stories about useful DAPPs on EOS instead of new cryptocurrencies, but if there is real innovation with a new token, it could be helpful for EOS and the industry in general.
A new exchange raised $27.5 million from investors including Fidelity Investments and Nasdaq Ventures. The exchange intends on trading Bitcoin, Ethereum, Litecoin, as well as future markets in the future. The investment will go towards hiring staff and building infrastructure.
Takeaway: With so many exchanges that already exist it is hard to imagine that ErisX will be innovative, but investments from major players is exciting. It is possible that Fidelity and Nasdaq will either use ErisX to trade cryptocurrencies or use components of the exchange to appease their investors/traders.
The fact that cryptocurrency businesses are still raising millions of dollars from big players indicates that big investors still believe in the long term potential of cryptocurrencies.