Wednesday, May 13, 2020

📌 JP Morgan Adopts Crypto, BTC Halving Results, and ETH Futures Contracts

May 13, 2020 | Issue #117

MUST READS

Big-Name Investor Embraces Crypto

One of the smartest and most successful investors of the last quarter-century is now long on Bitcoin.

Macro investor, Paul Tudor Jones, is buying Bitcoin as a hedge against the inflation he sees coming from central bank money-printing.

Here are some great lines from the man himself...

⚠️ On Bitcoin's scarcity premium:

"It is literally the only large tradeable asset in the world that has a known fixed maximum supply."

💸 On Bitcoin's portability:

"A great store of value can be seamlessly moved from one jurisdiction to another with little or no transaction costs. Cash is obviously good for that; gold is ok but clunky; but, of course, nothing beats Bitcoin, which can be stored on a smartphone among other options."

📝 More from Jones:

"The best profit-maximizing strategy is to own the fastest horse."

"Bitcoin reminds me of gold when I first got into the business in 1976"

"The most compelling argument for owning Bitcoin is the coming digitization of currency everywhere, accelerated by the pandemic"

As Meltem Demirors pointed out, it is worth noting that PTJ isn't exactly "buying Bitcoin." In fact, he's buying a CMEGroup futures contract that's cash settled and tracks the price of Bitcoin. There's a difference.

Either way, it's a huge validation.

J.P. Morgan Finally Opens Accounts For Bitcoin Exchanges

JPMorgan Chase & Co. has taken on Coinbase and Gemini as banking customers, according to people familiar with the matter. This is the first time the bank has accepted clients from the cryptocurrency industry. Queue Jamie Dimon's ironic, old criticisms.

Meanwhile, Irish cryptocurrency firms are being refused banking services despite the State's promotion of blockchain.

The Final Bitcoin Halving Block had a Secret Message

The Bitcoin halving just happened. But inside the penultimate halving block, is a homage to the very creation of Bitcoin itself...

Here's what it says.

Also, for those wondering what exactly happened on Bitcoin's biggest day in years, here's a quick breakdown.

TL;DR: It turned out to be a real snoozefest. The price dipped from around $8,900 to ~$8,400 then... climbed back to its current price. Furthermore, the hash rate, which was predicted to take a hit as older miners went offline, actually increased.

ErisX Launches First US Ethereum Futures Contracts

This week, crypto derivatives platform ErisX expanded its physically-settled futures products to include Ether (ETH) for US clients.

Note: Physically-settled futures contracts deliver actual tokens upon expiry, rather than the fiat equivalent... and should bump up ETH market activity.

The contracts will be standardized and regulated by the CFTC and both individual and institutional investors will be able to access them with monthly and quarterly expirations.

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DEEP DIVE

Binance Adds Its Own Leveraged Tokens After Removing Competitors

After recently announcing the delisting of FTX leveraged tokens, saying the products confused customers, Binance has quietly added its own leveraged tokens. Binance claims their products differ from the competition because they incur smaller fees, tout less risk, and give enhanced protection.

Some though, like Larry Cermak, are not so convinced explaining that this is not only a hypocritical cash grab by Binance, but that their token actually removes transparency in the market.

A Research Paper Shows that the Majority of EOS, Tezos, and XRP Transactions are Valueless

After examining the network traffic of EOS, Tezos, and XRP over a three month period, researchers from Cornell found that only a small fraction of the transactions are used for value transfer purposes...

According to the paper:

95% of the transactions on EOS were the result of an airdrop of a valueless token
82% of transactions on Tezos were used for maintaining consensus
Only 2% of transactions on XRP were considered valuable

Trump and Chip Makers Seek Semiconductor Self-Sufficiency

The Trump administration and semiconductor companies are looking (paywall) to jump-start development of new chip factories on US soil as concern grows about reliance on Asia as a source of critical technology.

Marty Bent explains how this could benefit the future security of the Bitcoin network.

REGULATORY FRONT

Telegram Founder Pavel Durov Says the Firm's TON Blockchain Project is 'Over'

After stating less than two weeks ago that they would be launching their blockchain network in April 2021, Telegram has announced that they are abandoning the project.

Durov cited the ongoing legal battle with the SEC, which alleged that Telegram's $1.7 billion ICO in 2018 constituted an illegal securities offering.

Durov concluded with some precautions and of course, some harsh words for the SEC.