Nouriel Roubini’s Testimony to the US Senate receives criticism from the crypto industry while Peter Van Valkenburgh claims Bitcoin is revolutionary. Charles Hoskinson and IOHK split from Cardano Foundation over-centralization and inefficiencies of the foundation. In exchanges, Coinbase shuts fund started for institutional investors, will now focus on retail investors. Bitfinex answers to online rumors of bankruptcy. Bithumb majority stake to a Singapore based consortium. Circle Financial invests in SeedInvest.
The hottest topic this week was when The Committee on Banking, Housing, and Urban Affairs met in an open session to discuss the current state and future of Cryptocurrency and Blockchain Ecosystem on October 11, 2018. As part of the hearing, the Senate listened to the skeptic perspective of Nouriel Roubini, Professor of Economics and International Business New York University Stern School of Business and a positive perspective of Peter Van Valkenburgh, Director of Research Coin Center, trying to draw a conclusion on the best and worsts of the world of blockchain and cryptocurrencies. In his testimony, Dr. Nouriel Roubini called cryptocurrency space the “mother of all scams”. He further claimed that cryptocurrencies aren’t scalable, are full of scams, and aren’t being used by anyone but criminals. While Dr. Roubini spilled poison with his comments, Peter Van Valkenburgh claimed that Bitcoin is revolutionary. He noted that bitcoin isn’t perfect, but neither was emailed in 1972 when it was first introduced to the world, implying bitcoin is still in its early days and still has a lot of room to grow, provided it’s given the chance.
In another conflict, Charles Hoskinson, creator of Cardano, in a candid video explained the struggles he is going with the Cardano Foundation and its chairman, Michael Parsons. He also mentioned the issues IOHK and Emurgo were facing with the foundation and hence the best way forward was to break away from the Cardano Foundation. According to Hoskinson, While Emurgo and IOHK stuck to their job, according to Hoskinson, Cardano Foundation failed to do their part of work. In the video, Hoskinson points out that the Cardano community came forward to say that the Cardano Foundation was simply not doing its job the board has not executed “on its core responsibilities and duties.”
In some exchange based news, Coinbase, the poster boy of American Cryptocurrency industry, shit down its index fund aimed at wealthy investors as it shifts its focus to a new retail product. The reason behind it, a person familiar with the matter, said the index fund product failed to attract the necessary number of clients, raising fewer funds than the firm expected. As reported by media, Coinbase is shifting its focus to a new feature dubbed “Coinbase Bundle,” which allows users to purchase in one click a bundle of the coins listed on their exchange. The retail-aimed product allows users to invest as little as $25 in the basket of coins.
As Bitfinex was accused of being of the bankrupt by certain social media users, the exchange issued an official notification which is titled
“Response to Recent Online Rumours” coming out clean on the matter. Bitfinex emphatically refuted all such unfounded claims and took aim at critics who “are quick to scream insolvency, seemingly with little understanding of what this concept means and what they are generally talking about”.
For Bithumb, BK Global Consortium paid 400 million won ($353 million) for a majority stake in the exchange, having previously held a minority position in the company. Under the new deal, which officials hope to finalize in the coming month, BK’s leader, plastic surgeon and investor Kim Byung-gun, will go from the exchange’s fifth-largest to the main shareholder. Previously, the majority stake was held by BTC Korea Holdings, the equity changing hands for a conspicuously lower sum than appeared in a February evaluation of around $880 million.
Another investment news this week was that of Goldman Sachs-backed peer-to-peer blockchain startup Circle, is acquiring the largest equity crowdfunding platform and registered Broker-Dealer SeedInvest. With this acquisition, Circle would be making a big push towards the security token space, and this acquisition will allow startups to raise capital through a regulated platform, access diversified portfolios of retail investors through Circle Invest, and get secondary market liquidity through Circle’s digital asset exchange Poloniex.
The stability of Bitcoin continues this week as well as it was down just around 3.65% this week. The reported weakness was yet in the stable zone. The prices hit the high point of USD 6,675.06 and the lowest point of USD 6,236.47 during the week. Apart from the outliers of BitMEX that had volumes of 15.08%, the exchanges that were more active, in volumes, with BTC across various pairs this week were, Bithumb (4.38%), ZB.com (2.99%), Binance (2.43%)
Among prominent voices, Roubini called Bitcoin and cryptos the mother of all scam while Peter Van Valkenburgh claimed that Bitcoin is revolutionary.
Ethereum again was seen exchanging places with XRP on the list of largest cryptocurrencies by marketcap. Although it regained its spot back still XRP is at a threatening distance. Ether prices, on the top, this week were at USD 245.11 and were at lows of USD 206.49 dwindling pretty close to USD 200 hurdle. The markets that were more active, in volumes, with ETH across various pairs this week were DOBI Trade (5.82%), Binance (4.78%) and Huobi (4.40%)
Like Bitcoin, for Ethereum too Tom Lee was quoted saying this time by CNBC that the last four out of four times it lagged its peers that badly, by two standard deviations, ether saw a “major trend reversal.” Lee also said that the sentiment towards ETH was overly negative and that the token underperforming its peers by two standard deviations were a “sign of capitulation.”
Ripple’s XRP still is having a crazy time this time with an expectation that the Coinbase policy change may open doors for XRP on the renowned exchange. On the top, this week the prices of XRP were at USD 0.587431 and towards the bottom, it quoted USD 0.441519. The exchanges that were more active, in volumes, with XRP across various pairs this week were Bitbank (12.65%), Upbit (12.55%), and Binance (11.10%)
For XRP this week, CoinField, Canada’s most advanced Bitcoin and cryptocurrency exchange, announced that it is exploring the possibility of making XRP as its base currency.
The other movers and shakers
The Other coins that made to the top and bottom this week according to Coin Market Cap (accessed on Sept 30 at 11:30 pm IST) were
- ETERNAL TOKEN – Showing a rise of 714.23%
- EJOY – Showing a rise of 390.55%
- ONG – Showing a rise of 220.57%
- Concierge Coin – Showing a drop of 69.69%
- Coin2Play – Showing a drop of 57.31%
- Banyan Network – Showing a drop of 39.07%
What do you think would be the sentiment of the crypto markets next week? Do let us know your views on the same.