Your weekly recap of everything blockchain and cryptocurrency
The price of the tether stablecoin fell to an 18-month low on Monday, despite a general rise in the wider crypto markets.
The tether-US dollar exchange rate fell to less than a dollar, the lowest it’s been since April last year.
Tether’s price slide was followed by a jump in the value of bitcoin and ethereum.
In other news, financial services giant Fidelity has taken a big leap into crypto.
The 72-year old firm announced this week it’s launching a stand alone company that delivers crypto to institutional investors.
Fidelity Digital Asset Services will provide crypto custody solutions and a trading platform around the clock, to align with blockchain’s trading cycle.
Meanwhile, two former UBS bankers have raised US$103 million to build a crypto bank.
Now heading up Swiss start-up SEBA Crypto AG, the duo is seeking a banking and securities dealer license to manage cryptocurrency trading and investments for banks and qualified investors.
And Apple pioneer Steve Wozniak has joined blockchain investment firm EQUI Global as a co-founder.
It’s reportedly the first time Wozniak has agreed to join a company since leaving Apple for good.
Top cryptos of the week…
This week, the insolvency scare of stablecoin Tether, caused a short-lived spike in bitcoin’s price.
In a rush to withdraw funds from the bitfinex exchange, investors purchased bitcoin, pushing the price from just US$6400 to almost US$7800 on the exchange in a two hour window, before settling back down.
This sudden spike cleared out US$60 million of short volume.
But over a 48 hour period, short traders returned and short volume is now over 50 per cent greater than long traders, demonstrating a pessimistic sentiment on price.
We suspect bitcoin price may fall further next week as those who moved their tether holdings into BTC are opening accounts in other locations to sell their bitcoin back into USD.
On the spotlight this week is the 0x Protocol.
The open protocol for decentralized exchange on the Ethereum blockchain became only the 6th cryptocurrency to be listed on the Coinbase Pro exchange.
With the ongoing bitfinex controversy, we anticipate trading volume to migrate to Coinbase Pro, providing further investor exposure to the ZRX token.
This week we’re also looking at Bitcoin Cash.
The bitcoin fork has been gathering steady merchant adoption across Australia.
Having fallen to 6.8 per cent of the BTC price, if it reaches the next point of support at 5.5 per cent of BTC, it may represent a resilient entry point, as the asset is held by a community of ardent believers in the bitcoin fork.
Projects to watch…
First up, these platforms are helping you get your books in order.
Regulatory requirements can be hard to keep track of, especially when dealing with multiple investment funds and large portfolios.
This new regulatory technology or ‘RegTech’ platform is helping users see the ‘big picture’.
GECKO Governance gives users a bird’s eye view on all their compliance paperwork.
And, Spotcoin is developing a financial toolkit to better bridge the gap between financial markets and emerging digital asset ecosystems.
The platform aims to provide access to digital asset markets, over-the-counter trading, mining and payments.
Its token sale opens next week.
Now that you’ve balanced your books, it’s time for a bit of shopping.
This social commerce platform has created a decentralised way to bring brands closer to their customers.
On the Fanfare platform, users can create shoppable videos as promotion on behalf of brands.
Its public sale is currently open with a hard cap set at US$40 million.
The week ahead…
The eyes of the crypto world will be on stablecoins this week.
Off the back of the controversial Tether price drop, exchanges are rushing to list new stablecoins as an alternative for investors.
Huobi and OKEx have both announced they’ll be listing USD-pegged cryptos this week.
Digital currency exchange Coinbase has opened a new office in Dublin as part of a backup plan to continue to have access to the EU post-Brexit.
The move mirrors that of many big banks trying to increase a European presence to offset the impact of Brexit.
In conferences, sustainable investing in blockchain technologies will be the focus at the Crypto Invest Summit in LA.
And the 2018 Korean Blockchain Expo launches next week.