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U.S. ISSUES: The U.S. government shutdown, now entering its fourth week, is having ramifications on the crypto space. Perhaps the most notable of these is Bakkt having to delay its planned launch date again, as the Commodity Futures Trading Commission – which must approve parts of Bakkt's plan – has yet to take the requisite steps to give Bakkt a green light.
The long-awaited bitcoin ETF is likewise in limbo, as the Securities and Exchange Commission cannot review the proposal during the shutdown. While the proposal would be approved automatically should the SEC do nothing, legal experts agree that the regulator is more likely to issue a quick rejection rather than let this happen.
It remains to be seen when the government will reopen, or what the ultimate impact on the crypto space may actually be. But it seems evident that the closure has already hit the space, and this seems unlikely to change and the impact could be felt for months. Full Story
TRACKING FEAR: LedgerX announced Monday that it is launching a new index aimed to help the markets anticipate bitcoin's notorious volatility. The firm says it will draw data for the LedgerX Volatility Index (LXVX) from its regulated bitcoin options, which various institutions have been trading over the past year.
Juthica Chou, LedgerX’s president and chief risk officer, told CoinDesk that the LXVX is similar to the Cboe Volatility Index (VIX), a popular measure of the stock market’s anticipated volatility.
“[A volatility index] tells you the expected certainty that the market is forecasting,” Chou explained. Put another way, the LXVX can be described as “a bitcoin fear index,” much like the VIX is referred to as the stock market fear index, she said.
Chou, who previously worked at Goldman Sachs as a volatility trader, said the new index can help traders and investors monitor risk as they manage their businesses. At present, the index is not a tradeable product, though building such a product is a goal further down the line. Full Story
BITMAIN RETREAT: China-based cryptocurrency mining giant Bitmain is closing yet another overseas office – this time in Amsterdam – as part of its ongoing business adjustments.
In a statement shared with CoinDesk, a Bitmain spokesperson said that, while the company has not yet shut down its Amsterdam operation, the decision has already been made and the process is underway.
“As we build a long-term, sustainable and scalable business, we are making adjustments to our staff and operations. This includes the decision to close our Amsterdam and Israel offices,” the spokesperson said.
In early December, Bitmain confirmed the closure of its Israeli office, with the layoff of over 20 staffers who were mainly in charge of development of blockchain technology and artificial intelligence. The company has also cut back on staff at a Texas-based mining center, as well as in its home nation of China.
Bitmain has not yet specified a timeline for the Amsterdam closure, or how many staff will be impacted as a result. However, according to information on LinkedIn, at least nine people are identified as Bitmain employees in the Dutch capital.
“We are really focusing on things that are core to our mission and not things that are auxiliary. We will continue to hire the best talent from a diverse range of backgrounds,” the firm added. Full Story
200 CRYPTOS: U.S. crypto exchange Bittrex is launching an over-the-counter (OTC) trading desk.
The new service will support the nearly 200 cryptocurrencies already offered by the exchange, Bittrex announced Monday, and will provide "guaranteed pricing" for major trades, "typically $250,000 or greater."
OTC trading desks facilitate direct transactions between two parties, unlike exchange trading where buys and sells are matched through an order-book.
In a statement, CEO Bill Shihara said: "With one of the most extensive selections of digital assets of any OTC desk available, this offering will be another way for Bittrex to further advance adoption of blockchain technology worldwide, while also providing our customers with price certainty and a fast and easy way to trade large blocks of digital assets." Full Story |
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 CoinDesk's Crypto-Economics Explorer aggregates data points across the industry to measure the size and opportunity of crypto markets. In addition to price and market cap, CoinDesk's explorer provides users with a comprehensive way to view the crypto-economic forces that shape an asset's market maturity, growth and potential. Network interest is important in determining the activity occurring within a blockchain’s internal ecosystem. Today, Jan. 14, we observed one metric within network interest: onchain transaction count. This is the amount of transactions occurring within the blockchains of each crypto. The Top 5 Coins by Onchain Transaction Count: - EOS
- TRX
- ETH
- XRP
- BTC
EOS, one of the newest blockchains to be launched last year, holds the top slot with 5.4 million transactions. It is followed by TRX with 2.75 million, about half that of EOS'. The next slots are filled by ETH, XRP and BTC. It's important to note that some cryptocurrencies prioritize certain value propositions over others. Smart contract platforms emphasize more transactions while store of value cryptocurrencies deemphasize that aspect for instance. For more research insights, check out the CoinDesk Crypto-Economic Explorer here. The above graph was sourced from coinmetrics.io.
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| LOOKING DOWN: Bitcoin bears forced prices below key support at $3,566 on Sunday as a quick follow-up to the 9 percent drop seen Thursday. If the bulls can’t muster a fightback, a return to December lows near $3,100 could be next for the leading cryptocurrency. Full Story |
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BEST OF THE BEST FORBES: U.S. crypto startups are moving out of the country to more blockchain-friendly nations such as Switzerland, according to a piece from Forbes. Switzerland, for instance, has five crypto startups for every 100,000 residents, while the U.S. has only one. However, Republican congressman Warren Davidson is trying to improve the situation with a joint bipartisan bill, the Token Taxonomy Act, with Democratic congressman Darren Soto. The Token Taxonomy Act is aimed at amending the Securities Act of 1933 and the Securities and Exchange Act of 1934 – laws the government uses to define securities – to bring about "regulatory certainty." Davidson expects the bill to pass, but isn't sure when, according to the piece. THE REST SEATTLE TIMES: Douglas County, Washington, wants to build a " blockchain innovation campus,” after the decline of crypto mining sector, The Seattle Times says. “There is more to the [cryptocurrency] story than the boom and the bust,” said Lisa Parks, executive director of the Port of Douglas County. The county hopes to locate the campus on an old industrial site in the city of Rock Island, on the Columbia River. The planned facility is planned to allow researchers to explore new use cases for blockchain technology and help the region stake a claim in the developing industry. “We have some unique assets that make our region appealing to that industry. Let’s figure out a way to capitalize on it,” Parks said. FORBES: Technology aiding the legal profession is becoming a hot topic, a fact illustrated by the immediate popularity of an ebook titled “Blockchain for Lawyers.” The tome drew 1.7 million views in the first two weeks after publication, writes Forbes contributor Mark Cohen. The interest in the book speaks to the fact that the legal field is growing quickly in the 21st century, Cohen says, explaining that "new practice areas like cryptocurrency, cybersecurity, and Internet law are emerging as law struggles to keep pace with the speed of business change in the digital age."
Blockchain technology may especially shift how the legal field operates, with new tools changing business practices. In particular, a large part of blockchain tech is focused on removing intermediaries, a role often filled by lawyers, Cohen notes. |
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