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Cryptocurrency Morning Brief

Jul 12, 2018

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  • The Shanghai Stock Exchange is looking to use a distributed ledger technology (DLT) in the securities market. The exchange published a research paper this week, analyzing DLT in the different stages of a security transaction. Different stages include: pre-trading customer registration, security issuance and trading as well as the post trade settlement. The Shanghai Stock Exchange is currently the fourth largest in the world with a market capitalization of USD$5.12 trillion. The use of DLT may face regulatory challenges because the technology would conflict the current centralized registration and settlement system.
  • Etoro, the social media-based trading platform is looking to add up to six more cryptocurrencies on its platform. The firm is performing due diligence on six crypto tokens and will likely add four or five tokens. One of the firm’s managing directors, Iqbal Ganhdam claimed that the recent downturn in crypto demand has allowed companies and exchanges to update their systems. Gandham mentioned that most exchanges feel that they needed a breathing space from last year’s euphoria. The managing director also mentioned that mainstream media needs to be more patient with crypto as email took 35 years to develop and that eBay and Amazon had scalability issues when they were first launched
  • Lightspeed Venture Partners, a venture capital firm that was an early investor in Snap has recently raised USD$1.8bn for new investments, including cryptocurrency projects. The fund is looking to expand into Southeast Asia which has a thriving digital ecosystem. The venture capital firm is quite familiar with cryptocurrency and blockchain investing. The firm has recently invested in the Telegram messaging platform ICO as well as Basis which is a stablecoin built on the Ethereum Blockchain.
  • Cryptocurrency related crimes are a focus of a new justice department task force. The new task force consists of the Justice Department, SEC, FTC and the Consumer Financial Protection Bureau. The executive order created cites “cyber fraud” and “digital currency fraud” as targets of the task force. The task force will also focus on the other forms of consumer fraud.
  • Bitcoin currently is 70% lower from its all-time high. However, one cryptocurrency bull from Australia is betting that Bitcoin will exceed the share price of Berkshire Hathaway by 2023. The bull has requested a wager for USD$8.5mm for anyone willing to take the bet. Berkshire Hathaway currently trades at USD$288,481 which is 45x the amount of Bitcoin right now.