Crypto Newsletter October 3rd, 2018
The Wall Street Journal published an article about cryptocurrency exchanges facilitating money laundering. They specifically identified about $9 million worth funds from potential criminal cryptocurrency wallets laundered through ShapeShift. Erik Voorhees, the CEO of ShapeShift denied the accusations and said that the WSJ’s claims were factually inaccurate and deceptive.
Takeaway: Misconceptions like “Bitcoin is anonymous” gives cryptocurrencies a bad rap and articles like this from the Wall Street Journal do not help cryptocurrencies’ cause. Even if Vorhees is telling the truth and that ShapeShift does not facilitate money laundering, the article paints an ominious picture for cryptocurrencies to those that are not heavily involved.
Bill Clinton made a speech at Ripple’s Swell conference. He briefly spoke about blockchain. He essentially stated that blockchain has a lot of potential because it is a global phenomenon. He added that regulation should not impede the future of cryptocurrencies.
Takeaway: One thing that makes cryptocurrencies so special is that they are borderless. In an increasingly global economy, it is important for easy international transactions. Cryptocurrencies simplify international transactions, which makes them so alluring.
In a highly anticipated event, xRapid is live and commercially available. Considering that this news was forecastable, the real news is the launch did not increase the price of XRP. XRP has actually depreciated this week, resulting in another “buy the rumor sell the news” event.
Takeaway: To no surprise, the price of XRP went down after the launch of xRapid. It will be interesting to see how banks react to this product. If banks do not review it positively, it could be bad for XRP. If banks like xRapid and the XRP product, XRP would still have great room to surge.
The StellarX exchange launched and it looks great. The exchange is free to use and allows users to retain custody of their assets. Transactions require 0.00001 XLM but Interstellar, the entity that operates StellarX will cover the fees.
Takeaway: BlockWolf sees StellarX as the new premier exchange. Without fees, it will serve as a much better platform for the general user compared to something like Binance, that charges fees on every trade. The exchange is going to lead to massive promotion for XLM, which gives us reason to believe that XLM is a good hold.