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Ray Dalio is a Burner, Friday Metrics Watch etc..

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Satoshi&Co Daily Crypto Newsletter

September 6 · Issue #229 · View online
ZPX | Satoshi&Co Newsletters

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

(We just launched a private beta for Qume, the fastest crypo derivative platform out there. A bunch of traders and market makers are now playing around with some ‘play BTC’. Hit us up via email if you had like a private beta invite as well. We will add you to the list)
All you Burning Man fans, you should check out the Kumbh Mela; far more raw, far more earthy, and far more authentic than a bunch of nerds trying to act all cool and counter culture-ish in the desert can ever hope to be. Yeah. Sorry!
Binance Stablecoin - We have been fans of stablecoins for a while, and we are eagerly looking forward to Binance’s play in this space. Clearly there are stand-alone stablecoin businesses that are in it to basically play the float, effectively make money from the collateralized fiat backing the stable coins, but the really big stablecoin businesses are all about platform benefits, across the whole range of products and services they offer. This is indeed the case for Binance’s USD stablecoin, BUSD, which is being launched in partnership with PAXOS, as well as with blessings from the New York regulator, following similar stablecoins it launched for GBP and BTC (yes!). Stablecoins are a key advantage for a platform like Binance. It could for instance provide a virtual fiat on-ramp, without needing a bank. A Binance stablecoin also keeps traders locked in within the Binance ecosystem. Presumably, investors might want to move from BTC or ETH or some token to BUSD before going back in for the next trade. There is of course the float and stuff, but that is small change (sats!) for Binance. 
It remains to be seen how existing incumbents in the US - Coinbase, Circle, Gemini et al react to this move from Binance. Just by virtue of being in the US, these companies have had to tread lightly in order to not fall afoul of regulations. Asian crypto firms like Binance are basically waltzing in to the US, after having made merry in the regulatory wild west that Asia mostly is, at least when compared to the US. It is a bit of an unfair advantage, even though it might not have been something the Binances of the world planned for. 
Imagine CZ (or more likely someone from his legal/leadership team, given that CZ takes no chances and stays clear of the US, unlike, say, Arthur Hayes of Bitmex) in front of the regulator in NY, basically making the case that, hey, you know, we had to do what we had to do in Asia, but we are really good at building at-scale crypto businesses, and we want to come in and play by the rules here, and build a similar massive crypto business that we want you to regulate. What exactly is the NY regulator going to say? In the unlikely instance that they do not play ball, CZ will gladly take his business to another state like, say, Wyoming, for instance. Regulators need to be seen as tough AND fair, especially in a sunrise sector like crypto, And given the early, necessarily collaborative nature of the industry, it is not like any of the American crypto firms are going to actually sue Binance. Or will they?
Alan Howard, of the hedge fund Brevan Howard, is launching a $1B ‘fund-of-fund, Elwood Asset Management’ that will invest in other crypto funds. Institutions are unsurprisingly taking a closer look, especially in a year where crypto has rebounded, and outperformed most of the core asset classes. We had a take on crypto investing some time ago, and it is worth a revisit now. It remains to be seen how long a traditional fund house like Brevan Howard takes to get to grip with the fairly un-structured nature of the inchoate crypto asset management industry, where features like custody are just about evolving and maturing.
But we can safely say that institutions are increasingly looking at crypto seriously. What more proof does one need than this photo of Ray Dalio of Bridgewater himself from the desert this year, partying at Burning Man with other crypto faithful.
Yet another decade, yet another crisis in Argentina after another IMF loan default saga. It is deja vu all over again, as the Argentinian currency has depreciated by more than 87% against the USD over the past few years. As investors are looking to abandon the weakening peso for USD, the Argentinian govt in a recent move to curtail the flight of domestic capital has imposed limits on the purchase of USD by investors. The new law limits the purchases of USD to $10k per month per citizen. In fact, BTC prices in Argentine Peso were trading at a 4% premium to the global average, highlighting the demand for BTC in the face of a currency devaluation crisis. Pretty much the same situation the has been playing out in Venezuela, then!

We think the Argent app looks promising. The promos are quite reminiscent of the Apple campaigns, and the app simplifies the whole process of lending and borrowing from the various DeFi platforms using some compelling, clearly Apple-inspired UX design. And now on to our regular Friday DeFi metrics coverage.
Ethereum Locked in DeFi
MakerDAO still accounts for a lion’s share of ETH locked up in collateral, with more than 1.39 million of ETH locked up. Compound showed a strong w/w growth of 4% in ETH locked up, while Augur improved by 4%.
Lightning Network Growth:
Capacity per channel fell by 0.4% w/w. The total number of nodes increased w/w by 1%, and the total number of channels was flat w/w.
(For reference, some previous articles on LN, here).
DEX Tracker:
Trading volumes on DEXs have increased on a w/w basis, with the average daily trading volume averaging 35k ETH for this week. IDEX remains the biggest DEX in terms of trading volume and DAI is the highest traded cryptocurrency on DEXs.
(For reference, some previous articles on DEXs, here and here).
Crypto Loans Tracker:
Compound Loans:
Total loans issued on Compound for the last week stands at approx. $2.6 million for the week, a strong decrease from $5.7 million in the previous week. WETH is the most borrowed cryptocurrency on Compound followed by DAI and BAT.
dYdX Loans:
Total loans issued on dYdX for the last week stands at approx. $2.6M for the week, a 50% decline from $5.2M last week. DAI is the most borrowed cryptocurrency on Compound followed by WETH and USDC.
MakerDAO Loans:
DAI loans issued on MakerDAO for this week stand at ~$2.1M, a slight decrease from $2.4M last week. The total outstanding DAI debt currently stands at ~$86 million.
(For reference, some previous articles on MakerDao, here and here).
You can also check out last week’s Metrics Watch here.
Meanwhile in Crypto Wonderland....
“Eight Institutions To Be A Part Of China’s Digital Currency”
According to sources, the People’s Bank of China is giving its first round of central bank digital currency (CBDC) to online retail giant Alibaba, Internet giant Tencent, five banking organizations and one unknown entity. Forbes reported the news on Aug. 27. The sources named are Paul Schulte, who previously worked as head of the China Construction Bank, and an anonymous individual identified as part of China’s CBDC project. According to Schulte, the first beneficiaries of China’s CBDC are Alibaba, Tencent, China Construction Bank, the Industrial and Commercial Bank of China, the Bank of China, the Agricultural Bank of China and Chinese banking association Union Pay.
“Quadriga Under Scrutiny From Various Regulators”
At least four different law enforcement and regulatory agencies are investigating defunct Canadian crypto exchange QuadrigaCX, a new report by bankruptcy trustee Ernst & Young (EY) said. George Kinsman, the court-appointed bankruptcy trustee and EY employee overseeing the exchange’s shutdown and the return of funds to its users, wrote a new report Monday sharing some information about EY’s ongoing attempts to recover crypto and fiat for its creditors. The document outlines the different investigations surrounding the exchange, as well as EY’s motion to transfer QuadrigaCX’s ongoing bankruptcy proceedings from Nova Scotia to Ontario, which the Big Four auditor says will reduce costs moving forward.
“Telegram To Distribute Gram Tokens Before Oct 31st”
Telegram’s cryptocurrency— the Gram — may be going public after all. The encrypted messaging app company plans to deliver “the first batches” of the coin in the next two months, according to a report at The New York Times. The last time we reported on the Gram, it was to note that Telegram was canceling its initial coin offering (ICO), so the news may come as a bit of a surprise unless you’ve been following Telegram and cryptocurrency closely. But if you have, you’ve probably heard a rumor that Telegram has a hard deadline to make it happen: if it doesn’t deliver by October 31st, it legally forfeits the $1.7 billion it raised to make those coins a reality.
“Facebook Announces A Bug Bounty Program”
As Facebook’s ambitious plans for its forthcoming crypto project faces intense scrutiny by regulatory bodies both in and outside of the United States, the social media platform has just launched its Libra Bug Bounty Program, in hopes of getting through to people. Rewards will provide strong incentive with payouts scaling up to $10,000 for finding critical issues on the testnet. According to reports, the bounty bug program isn’t just some tactic that the Libra Association pulled out last minute; in fact the program was going through beta testing and after more than 2 months, is now available to the public. The newest program was announced via post on Libra’s website, according to which is intended to strengthen the security of the blockchain.
Crypto Twitter Pick
Ben Davenport
Here's my take on the multiple interlocking positive feedback loops which drive the Bitcoin price.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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