Cryptocurrency News Update October 24th, 2018
After pending review from the Commodity Futures Trade Commission, Bakkt will launch its daily Bitcoin futures contracts on December 12th.
Takeaway: Bakkt’s daily Bitcoin futures will give big investors another alternative way to trade Bitcoin. Consequently, It will likely attract significant players and add liquidity to the market. The new platform adds further legitimacy to Bitcoin and if it goes well, it may help lead the Securities and Exchange Commission to approve a Bitcoin Exchange Traded Fund in the near future.
Coinbase and Circle are supporting a new stablecoin called USD coin (USDC). Thanks to blockchain technology, USDC will provide 24/7 access, fast transfers, programmability, and micro transactions.
Takeaway: With support from Coinbase and Circle, the USDC should be a trustworthy stablecoin and it should provide a safer alternative to Tether. Tether is currently the 8th biggest cryptocurrency by market cap size but carries significant credit risk. The cryptocurrency community at large is not 100% sure that Tether is backed by a 1:1 Dollar reserve, hence its recent trading price at under $1.00. It is great for the cryptocurrency industry that new stable coins are emerging and eating into Tether’s market share, because it will reduce the chain reaction that could possibly explode if Tether is exposed to be an insolvent stablecoin.
Monero incorporated Bulletproof zero knowledge proofs in its most recent update. Bulletproof reduces the amount of necessary information to ensure anonymity by over 90%, which means that transactions fees within the Monero network dropped by over 90%.
Takeaway: Monero is the top privacy coin by market cap size so it is not a bold statement to say that Monero is the best privacy coin but its implementation of Bulletproof reassures that statement. BlockWolf views Monero, Zcash, and Horizen as the top privacy coins, and we do not see Monero losing traction any time soon. Our research suggests that Monero is an undervalued coin.
The Securities and Exchange Commission launched a request form for FinTech-related meetings and other assistance, which includes support for cryptocurrencies and digital assets. Some of the general subject matters included are Digital Assets, Advisory Services Related to Digital Assets, Funding Portals, and Pooled Investment Vehicles. Some of the purposes of requested meetings may be about Accounting, Custody, and Determination of Instrument as a “security”.
Takeaway: The hub will provide more clarity for cryptocurrencies and digital assets. There is ambiguity as to how cryptocurrencies relate to securities laws and this hub will help attorneys and FinTech teams operate in a transparent and compliant way. This form of government assistance will help cryptocurrency projects create innovative technology without having to worry as much about the gray areas of law.