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Libra’s basket composition revealed

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Satoshi&Co Daily Crypto Newsletter

September 23 · Issue #232 · View online
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Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website www.satoshiand.co

We have covered Libra earlier (here and here). Here we highlight the section on the security token again;
 “Libra Association will introduce a security token called the Libra Investment Token to incentivize its partner companies to spread the adoption of Libra token and also to cover their operating expenses. Security token holders are expected to receive profits from the interest generated from Libra’s reserves. Only accredited investors are eligible to participate in this program. Enterprises looking to run the validator node are expected to make an investment worth $10 Million dollars in exchange for Libra Investment Tokens issued the association. The average cost of running a node is expected to be around $280k, effectively ruling out the possibility of normal retail investors and hobbyists from participating in the network.”
The investment so raised has to be invested, like an ETF, into a basket of liquid securities. New details have emerged regarding the constituents of the currency basket that will be used to back Libra tokens. According to Der Spiegel, Libra tokens will be backed by cash and govt. securities of five national currencies: US Dollar, GBP, Yen, SGD and EUR.  The composition of the basket is as shown. 
Source: satoshiandco
Libra could theoretically have added RMB as one of the currencies in the basket to deliver a diversified exposure to Libra Token holders. The RMB is also a natural counter-balance to the rest of the traditional ‘first-world’ portfolio constituents, especially the USD that makes up almost 50% of the basket. But the Chinese government’s guarded approach towards western tech giants, (even predating any potential response to the current Huawei kerfuffle) as well as strict capital control measures on its citizens and corporations prevents Facebook from considering RMB as one of basket constituents. Another issue here is China’s own plans to launch a new state-backed digital currency. 
Another alternative would be to simply a dash of bitcoin to the mix - that would help Libra gain more acceptance from the core crypto community. But bitcoin’s high volatility and lack of regulatory clarity would not make it possible for BTC to make the cut, at least just yet; especially given that Libra is essentially designed to function as a stablecoin with very low volatility in its price. From a portfolio perspective, however, a little bit of bitcoin might actually have a balancing effect when compared to other traditional currencies, much like in the case of the RMB.
With Binance also considering the launch of a libra-like global stablecoin, albeit that is much more sovereign friendly, the race for a global non-sovereign currency is heating up. The backlash that Libra has justifiably received after it announced the project due to Facebook’s abject reputation around user data management has actually made Bitcoin look good. Bottom line however is that Libra is some distance away from what might be acceptable to the extant gatekeepers - the central banks and governments across the world.
Meanwhile in Crypto Wonderland....
“Binance.US To Launch On Tuesday”
Binance.US, the American arm of cryptocurrency exchange giant Binance, has announced it will start trading fiat-crypto and crypto-crypto trading pairs on Tuesday. The trading platform will list seven cryptocurrencies immediately upon the launch, including bitcoin, Binance coin (BNB), ethereum, XRP, bitcoin cash, litecoin and Tether’s USDT. Binance.us also revealed it will soon open deposits for another five assets: cardano (ADA), basic attention token (BAT), ethereum classic (ETC), Stellar’s XLM and 0x. Last Wednesday, the new exchange started to open for registration and deposits, but did not disclose a specific date for an official launch.
“Bakkt Launches Physically-settled Bitcoin Futures”
Bakkt launched its physically-settled Bitcoin futures today, providing institutional investors with a new way to bet on the expected price of Bitcoin in the near term. And already, the amount of Bitcoin being traded on the exchange has reached a quarter of a million dollars. Bakkt was launched by The Intercontinental Exchange (ICE), the United States’ exchange group that owns the New York Stock Exchange. By offering physically-settled futures, this means traders make their bets and receive their winnings in Bitcoin—rather than the US dollar equivalent. This is important for Bitcoin traders because it helps to suck up Bitcoin in the market, reducing the available supply and helping to put upwards pressure on the price.
“Naspers Invests $15 Million In A Blockchain Gaming Startup”
Naspers, the largest shareholder of Chinese Internet giant Tencent, participated in a $15 million investment in blockchain game developer Immutable. Immutable, a Sydney-based blockchain gaming startup, completed a new funding round led by Naspers and Galaxy Digital EOS VC Fund, the company announced in a blog post on Sept. 23. As reported by the Australian Financial Review (AFR), other investors also included Sydney-based VC firm Reinventure and American private investment firm Apex Capital. According to the report, Immutable’s flagship game Gods Unchained has made over $4.5 million in revenue in just over a year, despite it is being played by a closed group of 13,000 gamers.
“Block Matrix Raises $2 Million”
As Bitcoin’s Lightning Network continues to see adoption and growth, Block Matrix, the team behind Bottle Pay, is taking the next step to make “Bitcoin payments easy and available to all.” Revealed exclusively to The Block, Block Matrix has announced it has raised $2 million in seed funding from a group of private investors to grow its flagship product, Bottle Pay, a payments service built on the Lightning Network. In its current form, Bottle Pay is a web platform and browser extension tool that enables users to send bitcoin payments across social media platforms and chat apps like Twitter, Reddit, and Telegram. Users simply log on to Bottle Pay, link their social media accounts, send bitcoins to a Bottle Pay Lightning Network wallet, and begin making and receiving bitcoin payments.
Crypto Twitter Pick
Matt Odell
Honestly didn't think bakkt would launch. Pleasantly surprised.

Bitcoin just got a big credibility boost. Kind of unreal tbh.
1:33 AM - 23 Sep 2019
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