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Satoshi&Co Daily Crypto Newsletter #38

Join a growing list of crypto experts, leading investors and blockchain aficionados who have chosen t

Satoshi&Co Daily Crypto Newsletter

October 26 · Issue #57 · View online
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Another Crypto mining startup is rumored to be gearing up for an IPO in the next two years. In addition to Bitmain’s impending public offering, Bitfury, a manufacturer of crypto mining gear, is reportedly seeking advice from global investment banks on a potential listing or debt financing to raise capital. If Bitfury goes public, it might be valued between $3-$5 billion and, according to reports, the company posted a revenue of $450 million for the 12 months through March.  
The picks-and-shovels plays in crypto are clearly reaping fortunes for early movers (Coinbase, Bitmain, etc.) and risk takers (Binance - walking on thin ice with the regulatory sharks underneath it). These centralized applications built on top of the blockchain protocol are growing faster than much-hyped trustless decentralized applications (Dapps), which face the real prospect of slowly fading into irrelevance as they struggle to acquire users who are in no rush to embrace decentralization for decentralization’s stake. 
What does this imply? A decentralization ‘purist’ might contend that these are still early days and decentralized applications will eventually come out on top in the long run. However, as centralized applications on blockchain continue to innovate rapidly, given access to existing distribution channels, decentralised applications continue to grapple with a wide array of headwinds such as scalability, token volatility and undercooked UI/UX. 
The gulf in this race could become wider and wider and reach a point where the gap might become unbridgeable for dapps, as network effects create impregnable moats for applications with large user bases.
Meanwhile in Crypto Wonderland....
“Sony Developing Hardware Wallet”
Researchers and developers at the Sony Computer Science Labs (SCSL) have come up with a hardware wallet that uses IC smart card functionalities to connect to crypto networks like Bitcoin’s. To highlight one of its new features, the device doesn’t have to be connected to a host computer via a USB device to access the crypto network. Besides that, users can generate a random and highly potent private key using the secure module hard-coded into the IC card.
“Mastercard Applies for Crypto Patent”
Yesterday, U.S. financial services corporation Mastercard applied for a new patent which enables it to apply principles of fractional reserve banking to cryptocurrency. According to the document, published by the U.S. Patent & Trademark Office (USPTO), the payment processor has plans to allow merchants to interact with what it calls “blockchain currencies” via a new method of simultaneous crypto and fiat storage.
“Europe’s First Major Crypto IPO”
Cryptocurrency-mining startup Bitfury is weighing strategic options including an initial public offering in what could be Europe’s first major listing in the industry. Bitfury has reached out to global investment banks as it explores making its trading debut in Amsterdam, London or Hong Kong as early as next year, according to people close to the matter.
“Indian Authorities Arrest Unocoin Founders”
Two of the four founders of cryptocurrency exchange Unocoin, who had opened India’s first cryptocurrency ATM in Bengaluru a few weeks ago, have been arrested on charges of fraud and the machine has been shut down. CEO Sathwik Vishwanath and co-founder B V Harish were booked early this week by the cyber crime police in Bengaluru on charges of fraud, criminal conspiracy and violations of the IT Act.
“MFSA Calls Out Bogus Trading Platform”
The Malta Financial Services Authority (MFSA) has warned of a “dubious” online crypto trading platform it says has falsely claimed to be licensed in the country, according to Malta Today. The platform in question, “Primetradingbot,” reportedly appears to be running a “high yield” Bitcoin (BTC)-related investment scheme, which the MSFA cautions has “a dubious nature with a high risk of loss of money”.
Crypto Twitter Pick
Reminder that Hal Finney was already talking about Hodling Bitcoin vs spending it directly (and talking about layer 2) in 2010 while some people are trying to push the narrative now that it only started during the block size debate.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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