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China effect on BTC, Bakkt etc

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Satoshi&Co Daily Crypto Newsletter

October 30 · Issue #244 · View online
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Xi to the rescue
After BTC managed to avert the death cross danger a few days ago, it has seen a strong 25% price increase last week buoyed by positive comments on blockchain technology by Chinese president Xi Jinping.
Surprisingly, China has been traditionally hostile to cryptocurrencies and banned all forms of crypto trading in late 2017, citing investor protection as the primary reason. However, industry experts believe that the ban was in fact imposed to pave the way for a state-owned digital currency pegged to RMB, which is set to launch early next year. 
While Xi Jinping’s comments are a strong validation of the positive impact that blockchain technology can make in the form of faster and more transparent transfer of money, it looks like the “Blockchain, but not Bitcoin” discourse has seemingly from moved from the confines of the crypto sphere to nation states. It might in fact set a bad precedent to other countries by encouraging them to ban public blockchains such Bitcoin, Ethereum, etc. with centralized nation-backed digital currencies.  
Bakkt Volume Surge And Options Launch
After a tepid launch, Bakkt saw a steep growth in trading volume as it surged from a trivial $700k on Tuesday to $4.8 million the next day. The surge was perhaps triggered by the precipitous decline in BTC price from $8k to $7.5k in a few seconds. The same price decine liquidated contracts worth of $200 mn on Bitmex. Less than a month ago, BTC’s $1k price slide liquidated over $650 mn worth long contracts on Bitmex. BTC’s capricious price movements are causing massive liquidations on derivatives exchanges. 
Bakkt is following CME’s path and announced the launch of BTC options next year. Rival CME is targeting the launch of options for Q1 2020. Bakkt’s soft launch raised concerns about the real interest of institutions in digital asset trading, while the growth a f the announcements post have gone some way towards allaying those concerns.
Source: Twitter
Source: Twitter
Meanwhile in Crypto Wonderland....
“Bitmain Secretly Files For A US IPO”
After seeing its IPO dreams slashed earlier this year, Bitmain Technologies has reportedly re-submitted its US application in secret. According to a Tencent News report, the cryptocurrency miner manufacturing giant filed its application with the US Securities and Exchange Commission (SEC), with Deutsche Bank as its sponsor. It’s not known how much Bitmain is looking to raise with its IPO, but previous reports suggested that it was seeking to raise approximately $300 million–$500 million with its US offering. The latest figure is a lot lower than the $3 billion it intended on raising when it filed an IPO application in September 2018  to be listed on the Hong Kong Stock Exchange (HKEX); it eventually lapsed in March.
“Jack Dorsey Invests In CoinList”
Twitter and Square CEO Jack Dorsey, who recently said his company would never get involved with Facebook‘s Libra, has backed a cryptocurrency startup. Dorsey, a longtime Bitcoin advocate, participated in CoinList’s $10 million funding round, alongside several other investors. CoinList, which helps startups raise money through token sales, will use the cash to build CoinList Trade, a new exchange platform, and a cryptocurrency wallet, the Wall Street Journal reports. This is the first time Dorsey invests in CoinList, which closed a Series B in 2018 from backers including Digital Currency Group and Polychain Capital.
“Coin Staking To Generate $16B Worth Onchain Activity”
Staking blockchain-based tokens, the process of holding crypto for a set period of time and earning rewards, already accounts for approximately $8 billion in market activity. And that figure could soon double thanks to Ethereum, according to a new report from Binance Research. The report, which Binance touts as the crypto industry’s “first major study into staking,” suggests that the crypto market could soon get a major boost from staking once Ethereum complete’s it planned transfer from a proof-of-work to proof-of-stake (PoS) blockchain network.
“Congressman Introduces A New Bill To Protect Token Sales From SEC”
Following last week’s Congressional hearing with Mark Zuckerberg over Facebook’s Libra intentions, one lawmaker, Tom Emmer, has outlined his intention to introduce a new U.S. crypto bill that could provide token sales legal protection from SEC enforcement actions. The Republican Congressman for Minnesota said U.S. authorities should only apply securities regulations to cryptocurrencies that meet the traditional criteria of securities. Although most blockchain companies, particularly in the U.S., try their best to follow the rules, authorities are adept at moving the goalposts, he said. That created uncertainty that made it difficult for the blockchain sector to operate legitimately in the country.
Crypto Twitter Pick
Daniel Onggunhao
Wow. The @MakerDAO stability fee (interest rate) has dropped to 5.5%.

A single whale (with 97% of voting power) made the decision. Went from 2,489 votes a few hours ago, to 44,539 votes.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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