Crypto Weekly Newsletter July 11th 2018
Tezos had a $232 ICO in July 2017 and investors recently received their XTZ coins. The price of XTZ fell from $4.44 on June 30th to $1.32 on July 5th. Since June 5th, XTZ has recovered to $2.11. It is unclear if the price dropped because ICO investors were provided with liquidity, or if it was because of a fundamental problem with Tezos.
Takeaway: There are many people who invest into ICOs to make a quick sale and not to act as long term holders. After about a year, XTZ holders were able to sell their coins, so it makes sense that some people would want to liquidate after not being able to for so long. The fundamental analysis is more complicated. BlockWolf plans to release a video and text guide explaining Tezos soon, so look out for that.
Gemini hired the former New York Stock Exchange chief information officer Robert Cornish to be its chief technology officer. Cornish will oversee Gemini’s technology team and strategy.
Takeaway: Gemini hiring a former NYSE officer demonstrates how the cryptocurrency industry is poaching top tier talent from other industries. Talent from a prestigious exchange like the NYSE will help improve the Gemini platform and provide it with necessary experience to expand appropriately in the United States.
Bitmain closed a Series B funding that valued the company at $12 billion. Supposedly Bitmain received about $300-$400 in new funding. Bitmain is a Chinese company and is the leading manufacturer for ASIC mining devices. Bitmain released their newest miner, the Antminer Z9 Mini, in June, which mines BitcoinGold, Zcash, ZenCash, and Hush.
Takeaway: With hundreds of millions in new funding, Bitmain is going to continue to dominate the mining markets. With more advanced ASIC miners, the barrier to entry to mine certain coins is rising.
Youtube is a defendant in a class action lawsuit against BitConnect. The accusation is that YouTube failed to delist and demonetize published videos about BitConnect, which exposed YouTube users to illegally promoted investments.
Takeaway: If YouTube if found to be guilty for failing to delist videos that illegally promoted investments, there could be a negative ripple effect with other sites that advertise cryptocurrencies. Although Facebook recently changed the rules of its cryptocurrency advertisement ban, Facebook and Google have restricted cryptocurrency ads and will likely enforce a stricter policy if YouTube is found guilty.
Google’s Co-Founder, Sergey Brin, stated that he mines Ethereum. He also stated that Google has “failed” to be on the “bleeding-edge” when it comes to embracing crypto.
Takeaway: Brin’s actions and comments suggest that he is bullish about Ethereum and cryptocurrencies, which is great to hear coming from the Co-Founder of one of the world’s largest tech companies.
The Bancor Decentralized Exchange underwent some maintenance and one of the exchange’s wallets was hacked during the upgrade. No user’s money was lost in the attack but the exchange lost about $12 million worth of Eth, $10 million worth of BNT, and $1 million worth of NPXS. The Bancor Protocol was able to freeze the $10 million worth BNT tokens but are unable to do much about the other stolen cryptocurrencies except track their movements.
Takeaway: The Bancor hack indicates that decentralized exchanges are prone to attacks and that centralized exchanges are not the only ones that have problems. Decentralized exchanges are still new. The best practice for storing cryptocurrencies is always storing them on a hardwallet and to never keep them on an exchange, centralized or not. Security concerns from Bancor may lead to more people to use centralized and traditional cryptocurrency exchanges like Coinbase and Binance. Over time as decentralized exchanges enhance their user interface and prove their reliability, their usage rates will probably increase.