Newsletter June 27th 2018
Lloyd Blankfein, CEO of Goldman Sachs made a statement in regard to fiat currencies and cryptocurrencies. He stated, “If you could go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency? It’s too arrogant to say that Bitcoin will have no future.”
Takeaway: Lloyd’s comment indicates that its too early to rule out Bitcoin and similar cryptocurrencies that could work independently from nationally governed currencies. His opinion can be useful when comparing his opinion to other successful people like Bill Gates, Charlie Munger, and Warren Buffet, who have made negative public opinions about Bitcoin.
US Congress members will have to report any new purchase or sale of more than $1,000 in cryptocurrencies no later than 45 days after the transaction.
Takeaway: We do not think this story in itself is not that important, but it could lead to more interesting stories in the future if certain members hold large sums of certain currencies. A congress member holding an amount of a certain cryptocurrency could be a bullish indicator.
Mt. Gox states that they will commence their civil rehabilitation proceedings, which means that they will no longer sell their Bitcoin on the open market.
Takeaway: This is good news for cryptocurrency markets because it means that it will prevent bad news of Mt. Gox selling their Bitcoin’s and lowering the price of Bitcoin. Some people believed that the Bitcoin selloff from the Mt. Gox Bitcoin custodian led to downward Bitcoin price pressure, and that should not happen again.
EOS freezes accounts (June 22nd)
EOS froze 27 accounts without justification. An EOS authority said that their logic and reasoning will be announced at a later date.
Takeaway: The freezing of 27 accounts without releasing their justification concerned many EOS fans and started conversations that led people to say that EOS was too centralized. Although it is not a good sign for EOS, BlockWolf thinks it is too early to be concerned about EOS’s governance system. There may have been a good reason to freeze the 27 accounts and there may have been a reason to not immediately disclose that information. EOS is a very new blockchain that is still working on its constitution and governance model. It was clear that EOS’s action was not accepted well in its community so if it continues to make disappointing actions, its community will lose interest in the project. BlockWolf expects mistakes from EOS authorities like this to occur less frequently in the future.
Andreesen Horowitz raised $300 million for its new crypto-focused fund.
Takeaway: Andreesen Horowitz’s dedicated cryptocurrency investment fund shows that wealthy people have serious interest in cryptocurrencies. The $300 million that they raised demonstrates that some successful people are bullish about the future of blockchain and cryptocurrencies.
Facebook is reversing its cryptocurrency ad ban. Facebook released a statement saying “we’ll be updating our policy to allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings.”
Takeaway: Facebook and Google ads are two of the most common ways to promote something and both of those companies recently banned cryptocurrency related ads. However, Facebook just reversed its ban and may lead Google to also reverse their ad. Cryptocurrency Ads on Facebook will lead to more exposure to cryptocurrency projects and will help spread awareness about blockchain and cryptocurrency related applications.