 QUOTE OF THE DAY  |
| "Most people give up just when they are about to achieve success. They quit on the one-yard line. They give up at the last minute of the game, one foot from a winning touchdown." - Henry Ross Perot |
Happy Tuesday! Today we discovered Satoshi's Place, a Lightning Network-powered collaborative artboard, and we couldn't be less surprised at the immaturity of the community. That being said, we approve.
Cheers,
Blockchain Brew Team
| COIN | PRICE | 24H |
|
| BTC | $6,773.96 | -0.14% |
|
| ETH | $526.16 | -0.96% |
|
| XRP | $0.578903 | -0.08% |
|
| BCH | $919.401 | -1.54% |
|
| EOS | $10.811 | -2.51% |
|
*Information as of 9:30 AM EST
Wells Fargo Bans Customers from Buying Cryptocurrency
WELLS FARGO
- Headquartered in San Francisco, California, Wells Fargo is the second largest bank in the world by market capitalization
- Wells Fargo has almost $2 trillion in assets under management and employs 260,000 people
CRYPTO BAN
- On Monday, the bank announced that they will no longer allow its customers to buy cryptocurrencies with Wells Fargo credit cards
- Wells Fargo has a history of restricting cryptocurrencies, as they cut off banking services to Bitfinex last year
- It is not the first bank to make this move, JPMorgan, Bank of America, and Citigroup have already limited their customer's access to cryptocurrencies
- Wells Fargo's decision has taken another blow to the cryptocurrency sector, which was already in a downfall
A Wells Fargo spokesperson explained:
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
CREDIT PROBLEM
- Credit card companies, like Visa and Mastercard have begun charging a cash equivalent fee to customers purchasing cryptocurrency with a credit card
- Earlier this year, LendEDU, a student loan marketplace, conducted a survey and found that 18% of their customers had purchased crypto with a credit card and 20% of them were running a balance on their credit card
- The survey also found that 21% of their customers used student loan funds to invest in cryptocurrency
CFTC Sends Subpoena to Four Cryptocurrency Exchanges
SUBPOENAS
- The CFTC has reportedly sent subpoenas to four cryptocurrency exchanges to gather trading data for its investigation into pricing manipulation
- The four exchanges to which the CFTC request data from are: Bitstamp, Coinbase, itBit, and Kraken
- These four exchanges provide pricing data to the CME Group for its Bitcoin futures contracts
- So far, the exchanges have been resistant in adhering to the CFTC’s request, but the CFTC is adamant in obtaining the data
PRICE MANIPULATION
- Ever since cryptocurrency went mainstream in 2017 and bigger players began entering the game, investors have theorized that cryptocurrency prices are being manipulated
- It is thought that some “whales” are using large, fake trade orders to deceive other investors and move the price in a favorable direction
- Even in a bear market, like we are currently in, traders are able to profit off of price movement in either direction, especially when they have influence on the movement
Binance Reveals Plans to Offer Crypto-Fiat Trading
BINANCE MALTA
- Earlier this year, Binance made the move into Malta after the Malta government offered attractive regulations that welcome crypto
- Yesterday, Binance revealed plans to offer crypto-fiat trading through its Binance Malta entity
- However, the Binance representative that revealed the plans clarified that Binance.com will always be "a pure crypto-to-crypto exchange"
- Initially, Binance Malta will only offer support for the Euro and has already opened a bank account in Malta to start the process
INVESTING WILL BE EASIER
- Binance adding crypto-fiat trading will certainly be a positive for crypto investors
- Currently, crypto investors usually buy through a gateway exchange like Coinbase and then have to transfer to another exchange to buy lesser-known cryptocurrencies
- This becomes time consuming and costly for investors
- Now since Binance is one of the largest exchanges, with $1.5 billion in 24 hour volume, investors will be provided with a streamlined investment route
DECOUPLE FROM BITCOIN?
- Right now, many analysts speculate that due to Bitcoin being a base currency for the crypto realm, it causes large correlation in the markets
- As exchanges add fiat pairings, it is possible that cryptocurrencies become less correlated with Bitcoin
- However, it is not known how soon this will happen or if at all since crypto-fiat trading pairs are a much more stringent offering due to regulations
Coinbase Adds Ethereum Classic, Causes Price to Jump
ETHEREUM CLASSIC
- Ethereum Classic (ETC) is the result of a hard fork in 2016 when disagreements caused a divide in the Ethereum community
- Currently, it is the 18th largest cryptocurrency and holds about a $1.6 billion market cap
- Though less popular then Ethereum, Ethereum Classic continues to operate as the original Ethereum though it is not backed by Vitalik Buterin
ADDED TO COINBASE
- With Coinbase having over 13 million users, it is one of the largest cryptocurrency exchanges that offers a select amount of cryptocurrencies with only crypto-fiat trading
- After revealing plans to add Ethereum Classic, there are now only 5 cryptocurrencies offered: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC)
- Within a few hours of being added to Coinbase, Ethereum Classic jumped from $12.89 to over $16, marking a significant movement for the day
COINBASE EFFECT
- Historically, when Coinbase added a cryptocurrency to its platform, the cryptocurrency has seen significant gains as the users on the app are exposed to the new asset
- Though Coinbase has not even added the ability to purchase Ethereum Classic yet, the news alone caused a price spike
- However, it will be interesting to see how Ethereum Classic reacts to the news in the current bear market
Cardano (ADA)
Cardano Foundation will hold a meetup in Munich.
BitShares (BTS)
Mainnet release will be published after test is done, estimated date is around Tue, 12 June.
Aion (AION)
MOAR AION in Circulation! The 7th Release (monthly) of 6.25% of AION Tokens for those who participated in AION's Token Release Schedule.
Komodo (KMD)
"We’re happy to announce that @KomodoPlatform will be added to the Bitpanda platform on the 12th of June!"
Today in Crypto is powered by coinmarketcal.com
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| Swarn (SWM) |
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