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Satoshi&Co Daily Crypto Newsletter #29

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Satoshi&Co Daily Crypto Newsletter

October 15 · Issue #48 · View online
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Bitfinex-backed USD Tether stablecoin with it’s value pegged to 1 USD, is in a tailspin since this morning over reports that Bitfinex does not have adequate US dollars in its bank account to back its outstanding Tether supply. Bitfinex’s USDT has been under constant scrutiny for a long time over the legitimacy of USDT and the lack of transparency in its operations.  The fact that it severed ties with it’s banking partner, which is believed to be holding the USD collateral for its stablecoins, has further aggravated the situation. USDT has been frequently accused of artificially inflating BTC liquidity on exchanges as a majority of BTC trading is denominated in USDT.
USDT Price Chart
USDT Price Chart
The panic selloff that started this morning has resulted in price increases across the board, as investors are seemingly dumping USDT to buy large-cap currencies such as BTC, ETH, etc. and other stablecoins (TUSD, DAI, etc.). Although, the flight of capital to BTC is positive for BTC’s price, the unraveling of the USDT mystery could have tempestuous effects on the prices of BTC and other stablecoins due to the sheer size of USDT and it’s biggest holders which include the highest-volume traded crypto exchanges such as Binance, Bittrex, etc. As we have opined last week in our newsletter, the hidden complexities of a simple 1:1 peg could lead to the demise of USDT and other collateralized stablecoins. This is akin to the collapse of CDOs which tipped the world over into a full-blown financial crisis.    
Meanwhile in Crypto Wonderland....
“BitYuan???”
Despite a blanket ban on cryptocurrencies and related businesses, China’s central bank is employing cryptographers and blockchain engineers to launch a state-issued digital currency. As per vacancies observed in the People’s Bank of China’s annual hiring list of 2019 for its Digital Currency Research Institute, the central bank is actively seeking talented employees to work on finance, cryptography, and other areas relevant to a digital currency.
“Gary Cohn Gets Into Crypto”
Gary Cohn, the former Director of the National Economic Council and national economic adviser to president Donald Trump has joined the board of crypto startup Spring Labs. Spring Labs is developing blockchain solutions to better help lenders verify customers’ identities. Cohn was earlier rumored to be starting a private equity firm or joining as CEO of a tech company.
“Gemini Adds Litecoin Trading”
U.S.-based cryptocurrency exchange Gemini, owned by the Winklevoss twins, has sealed regulatory approval to add Litecoin (LTC) custody and trading. Gemini’s vice president of engineering, Eric Winer, informed traders that they can begin depositing Litecoin into their exchange accounts as of 9:30 am EDT Saturday, Oct. 13 and trading will reportedly go live tomorrow.
“Crypto Hedge Funds ~20%”
According to Crypto Fund Research, crypto funds now constitute 20 percent of the total hedge fund launches in 2018. Crypto Fund Research also points out that crypto hedge funds are a part of some 622 crypto funds, a number which also includes funds based on venture capital and private equity. Together, they represent assets worth $4 billion.
108 Token NAV Update
Today’s NAV is ~$1.17, up roughly 18% since launch.
You can express your interest in 108 Token Series II here. This will be an open-ended, rolling vehicle.
Also reach out to us if you are a market maker or a liquidity maker that is interested in a conversation around the 108 Token.
Crypto Twitter Pick
Dr Craig S Wright
Permissionless and decentalised mean nothing to law.

If you build something illegal, then you are liable. All systems have a person (people) behind them. There is no AI based oracle, all that exists is owned by a person and that person is liable.

Blockchain does not change this
What We Are Reading / Listening To
Overnight Performance of Top 10 Cryptocurrencies
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