Crypto Markets News from John Lothian News – May 30, 2018

John Lothian

John Lothian

Executive Chairman

‘Layer 2’ Blockchain Tech Is an Even Bigger Deal Than You Think
Michael J Casey – Coindesk
Welcome to the “Layer 2” era.
We are now entering an exciting new phase of blockchain development in which the lightning network and other programming solutions that operate “on top” of existing blockchains promise big strides in scalability, interoperability and functionality.
There is still much work to be done. The early tech is buggy, and new security and trust solutions must be figured out when much of the computing activity in individual transactions or smart contracts is taken “off chain.”

Bitcoin is the market’s new fear gauge, investor says
The answers to which way the market will move next may lie in bitcoin, said Brian Stutland of Equity Armor Investments.
“Bitcoin is sort of becoming the new VIX, in sort of getting ahead of credit risk in the banking industry,” Stutland said on “Fast Money” on Tuesday.

London remains wary of jumping on crypto bandwagon; Banks hold the key to whether the City ultimately embraces digital currencies
Philip Stafford and Hannah Murphy – FT
For a financial centre that still dominates the $5tn-a-day global foreign exchange market, London’s reluctance to embrace cryptocurrencies will ultimately prove a blessing, or a costly mistake.

The Jabberwocky world of bitcoin; Clear Leisure, a minnow with a technicolour history, is digging into cryptocurrency mining
Kate Burgess – FT
Last week Small Talk followed Clear Leisure, a small Aim-listed company, into the Jabberwocky world of bitcoin where words — whether hash, sat or shilling — have entirely new meanings. In cryptocurrency land, a nonce is apparently a 32-bit field rather than a category of prisoner. Hodl is not a fatfinger typo but advice to hold on for dear life, sat is a millionth of a bitcoin and shilling is trickery.

Tradeshift Bags $250M in Goldman Co-Led Round, Plans to Invest in Blockchain
Anatol Antonovici –
Tradeshift has raised $250 in a funding round co-led by Goldman Sachs. The company plans to use some of the money to invest in innovative technologies like blockchain and AI.

Coinbase bought a “decentralized” crypto exchange. How does that work?
Joon Ian Wong – Quartz
Last week, the major cryptocurrency startup Coinbase acquired a company called Paradex. This company is known as a “decentralized exchange” (or a “DEx,” if you want to be down with the crypto cool kids). This new type of exchange is said to be a safer way to trade crypto coins—which is pretty useful, given that over $4 billion worth of cryptocurrencies have been stolen from exchanges between 2011 and 2017, according to a Reuters estimate.

A Bitcoin Halvening Is Two Years Away — Here’s What’ll Happen To The Bitcoin Price
In around two year’s time (on May 27, 2020, unless wild swings in the mining hashrate change anything) the coin reward for mining new Bitcoin blocks will drop from 12.5 Bitcoin to 6.25 Bitcoin — and people are already thinking about what this could do to the Bitcoin price. Much has changed for Bitcoin, cryptocurrency and blockchain since the last Bitcoin halving (something the community calls a halvening), which happened July 9, 2016, and each time it happens no one is entirely sure how the Bitcoin price, or the economy that has built up around it, will react. A Bitcoin halvening — there have been two since Bitcoin’s creation in 2009 — is a fixed event and will occur after every 210,000 blocks

Cryptocurrency trading app Taylor says all funds have been stolen in cyberattack; The trading app startup’s team woke up to find an alleged threat actor had rinsed the Taylor fund pool.
Charlie Osborne for Zero Day
A nightmare for promising startups but a common problem in the cryptocurrency industry is theft — and the attacker which allegedly targeted Taylor did not hold back.

Bitcoin is definitely a bubble, says Wikipedia founder; Jimmy Wales, outspoken ICO critic, questions entire ‘crypto world’
Aaron Hankin – MarketWatch
The co-founder of the largest free-content reference website has slammed bitcoin and the digital currency industry, saying that it is in a bubble that will eventually pop.

The Challenges of Crypto Trade Surveillance
Bloomberg reported this week that the U.S. Justice Department has opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies, specifically by spoofing – entering fake orders to trick other traders into buying or selling.

Crypto’s most devout believers are suffering a crisis of faith
Jemima Kelly – FT
Last week, we received a press release about a luxury townhouse currently for sale in Manhattan’s swanky Upper East Side for just shy of $30m. As you might expect for that kind of price tag, it’s a pretty fancy place, featuring 13-foot “majestic ceilings”, original mosaic tiled floors and a white marbled staircase:

Why A.I. and Cryptocurrency Are Making One Type of Computer Chip Scarce
Cade Metz – NY Times
Two technology booms — some people might call them frenzies — are combining to turn a once-obscure type of microprocessor into a must-have but scarce commodity.

Bank Robber No Longer Needs Banks: Turns to Stacking Bitcoin and Other Cryptocurrency
Richard Stanley
The “Skinny Bandit” brazenly robbed banks on the mean streets of San Diego, but he no longer needs banks because of his steady success in trading Bitcoin and other cryptocurrencies.

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Bitmain – What’s Happening to the Billion Dollar IPO?

For the first three quarters of 2018, investors and analysts speculated about when, then if, Bitmain would go public. During a pre-IPO private fund raising, reports leaked out that Bitmain was valuing itself at $15 billion or maybe even $18 billion. During the third quarter bitcoin, which drives industry development, traded at around $6,500, shooting up briefly to the $8,000 range.

Those summer 2018 bitcoin prices were $3,000 higher than current ones. Is it any surprise that Bitmain’s IPO may not launch after all?

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