Crypto Weekly 6/9/19
A weekly summary of the latest crypto news
PRICE CHANGE: WTD/YTD
- BTC ($7,735): -11% / +106%
- ETH ($232): -13% / +74%
- LTC ($115): +1% / +278%
- XRP ($0.39): -12% / +10%
- Crypto Market Cap ($246B): -11% / +95%
- BTC Dominance: 56%
THIS WEEK IN CRYPTO
- The SEC is suing messaging app Kik over its 2017 ICO that raised $100 million, alleging that the tokens issued in the sale were securities and should have been registered with the government agency. If it wins, the SEC could force Kik to offer its investors their money back. Kik recently set up a crowdfunding campaign called DefendCrypto.org to raise money for its legal defense, which has raised $4.3 million in donations. In response to the SEC's announcement, the value of Kin, the token issued by Kik, plunged by over 30 percent. Link.
- Kik Interactive Inc. has become the most prominent business sued by US regulators over claims it illegally raised capital by selling its own cryptocurrency. The SEC alleges that Kik was running out of money in 2017 and decided on a "Hail Mary" effort to raise capital through an ICO, even though US regulators had warned that ICOs probably needed to comply with the US regulatory process. This case could lay the foundation for more regulatory clarity around ICOs and tokens.Link.
- Facebook is planning to release a white paper for its upcoming cryptocurrency on June 18th. Though there have been conflicting reports on the project, it is believed that the cryptocurrency will be transferrable with zero fees via Facebook products including Messenger and WhatsApp. Facebook is working with merchants to accept the tokens as payment and has hopes to roll out physical devices for ATMs so users can exchange traditional assets for the cryptocurrency. Link.
- Facebook announced plans to create an independent foundation to manage its upcoming cryptocurrency. Facebook also plans to license out the right to operate nodes on its new crypto network, charging companies $10 million to operate a node. Facebook plans to launch its network with 100 nodes, generating $1 billion in licensing fee. These fees will be used to back its stablecoin currency. Link.
- Bitcoin trading volume on Coinbase hit the highest amount seen in 14 months in May. Roughly 740,000 bitcoin - worth approximately $5.9 billion - traded hands on the platform in May. The most bitcoin ever traded in a month on Coinbase was December 2017, when the cryptocurrency reached as high as $19,891 and roughly 1.275 million bitcoin traded on the exchange. Link.
- Tron founder Justin Sun won a bid to have lunch with Wall Street legend Warren Buffett, paying a record $4,567,888. Buffet is known to be highly skeptical about cryptocurrencies. Link.
- Polkadot, the blockchain network that enables interoperability between blockchains, is reportedly trying to raise $60 million through a private token sale. The network was created by Gavin Wood, co-founder of ethereum and founder of Parity Tech. The company was seeking a valuation of $1.2 billion but is reportedly falling short of that threshold. Proceeds from the sale will be used for testing Polkadot's mainnet, incentivizing developers, and funding additional research and operations. Link.
- Apple is set to launch CryptoKit, a Swift API to perform basic cryptographic operations on its upcoming iOS 13 software release. This new framework will integrate options for hashing, key generation and exchange, and encryption for developers on iOS apps. The announcement came during Apple's Worldwide Developers Conference. Link.
- Israeli startup ZenGo is launching the first non-custodial wallet without private keys, points of failure, or passwords, all with a custodian-grade experience. The app aims to give users control over their funds through a simple app that is highly secure; ZenGo has been audited by Kudelski and AppSec, offers biometric encryption, and can guarantee funds will not be impacted if a user's phone or server is hacked. The company raised a $4 million seed round last year from Samsung, Benson Oak, and Elron. Link.
- Binance, the world's largest crypto exchange by trading volumes, will begin issuing stablecoins over the next few months beginning with Binance GBP which will be 100% backed by the British pound. Binance plans to introduce additional coins tied to other currencies, though it has no plans to introduce a US dollar backed stablecoin. Link.
- Ex-Bitmain CEO, Jihan Wu, is launching a new crypto-services business called Matrix that is set to go live in a month. Matrix will offer custody and lending services to customers, including Bitmain itself. Sources who work closely with investors in Asia have suggested that Matrix will be the biggest OTC desk and asset-manager in the world overnight. Link.
- Retail giant Walmart announced it was joining the MediLedger consortium, which is developing a blockchain designed for tracking the provenance of medicine. MediLedger is also planning to launch a pilot project with the FDA this month; the agency needs to launch a digital system for tracing and verifying prescription drugs by 2023 and is currently testing options like MediLedger.Link.
- Anheuser-Busch InBev invested in the Series A fundraising for blockchain-as-a-service startup BanQu, which uses blockchain tech to assist unbanked workers. BanQu's blockchain technology allows workers, such as farmers who are often unbanked, to access financial services via partner banks and mobile money providers. The startup has helped over 200,000 individuals access financial services since 2015. Link.
The technology behind the cryptocurrency NEO will be relaunched in 2020 as Neo 3.0. The underlying infrastructure will be so different that token holders will need to turn in their assets for newly issued tokens. NEO Foundation plans to destroy the old tokens and airdrop new tokens to designated wallets. Link.
- Kodak announced a blockchain-based document management system called Kodak Services for Business. The platform is for businesses and governments to store and manage sensitive documents; the blockchain platform will lead to 20-40% cost savings through automated workflows and decreased human management of content, information, and documents. Link.
- Blockchain startup Fluree has raised $4.7 million in its seed round, led by 4490 Ventures. The startup is developing a blockchain-based database that will enable collaboration, accuracy, and trust. Fluree has a free community edition and a paid enterprise version. Link.
- The mysterious collapse of Canada's QuadrigaCX crypto exchange has sparked an investigation by the FBI. The exchange shut down in January following the unexpected death of its founder, leaving 115,000 customers out of pocket for roughly $195 million. The exchange is currently going through bankruptcy proceedings. Link.
- Ripple, the company behind cryptocurrency XRP, wants to improve the accuracy of XRP's volume and sales data. Recent reports have suggested Ripple has exaggerated up to 95% of its volume. Link.