Cryptocurrency News November 7th, 2018
In this cryptocurrency newsletter, BlockWolf shares stories about Goldman Sachs, Tether, IOTA, Basic Attention Token,Morgan Sachs, and the SEC.
Goldman Sachs has reportedly allowed a select group of clients to trade Bitcoin derivatives.
Takeaway: Some worry that derivatives will lead to price manipulation. Some also worry that is equally likely that derivatives will lead big traders to short Bitcoin rather than to long it. Those possibilities are true but in general, the fact that Goldman Sachs is offering a Bitcoin related product gives Bitcoin legitimacy. Goldman’s interest illustrates that Bitcoin and cryptocurrencies are developing as a new asset class.
Tether Limited publicly stated that it has established a banking relationship with Deltec Bank. Deltec perform due diligence on Tether Limited including an analysis of their compliance process, policies and procedures, a full background check of shareholders, ultimate beneficiaries, and assessments of their ability to maintain the USD-peg at any moment. There is a letter from Deltec that intends to authorize Tether’s bank balance that can be found here.
Takeaway: Tether Limited’s banking relationship is an reassuring thing for Tether reserve skeptics but it is still unclear how valid this proof is. Specifically, the body of the letter as well as the signature of the letter seem unusual. BlockWolf would still rather use TrueUSD or a different stable coin over Tether.
IOTA announced integration with the leading hardware wallet Ledger Nano S. This will enable a secure and reliable storage method for IOTA.
Takeaway: Storing cryptocurrencies safely is critical for holders and big investors. IOTA’s new storage solution with Ledger wallets will open doors for new investors who may have been hesitant to hold IOTA in the past.
Basic Attention Token (BAT) was launched on Coinbase Pro.
Takeaway: This story should not surprise anybody who keeps up to date with Coinbase news. We expect Coinbase to continue to add more altcoins. Nonetheless, Coinbase’s support for BAT is a great endorsement for the Brave browser and its native cryptocurrency, the Basic Attention Token. The endorsement implies that Brave and BAT will continue to develop and attract new users in the future.
Morgan Stanley released a report on the evolution and status of Bitcoin and cryptocurrencies. Their current thesis is that cryptocurrencies are a new investment asset class.
Takeaway: If cryptocurrencies are universally accepted as a new asset class, one might assume that more people will be interested in investing in crypto to diversify their portfolios. Morgan Stanley is a renown financial institution and if they say that Bitcoin and cryptocurrencies are a new asset class, other people will likely agree with them.
The director of the SEC announced that they will publish more guidance on ICOs and how they are affected by securities law.
Takeaway: Although the SEC has cracked down on several fraudulent ICOs, they have been generally amicable towards cryptocurrencies and cautious of stifling innovation. Even if they do not approve a Bitcoin ETF, the recent stories from the SEC show that they generally approve of cryptocurrency development and do not want to the prohibit the growth of new technology.