0x Surges 30% on the “Coinbase Effect”

0x coinbase

0x has surged 30% after the token officially started trading on the Coinbase exchange.

The move had started last week with rumours of an addition for 0x and I noted in a previous article how Coinbase users had spotted  ZRX listed in the  reporting section of the Coinbase platform. This was followed by the initial rally to the $0.75 level. I noted then that, “Key resistance for ZRX will be around the $1.25 level.”

The price has blasted through the $1.00 level today but has since retreated to $0.98. There is potential for a follow-through rally and above $1.25 we have resistance at $1.75 and $2.25. Above the $2 level there is little resistance to stop a bull run in 0x. Today’s move will have been powered by large investors on the Coinbase exchange who wanted to diversify into ZRX and its $500 million market cap. The move on the “Coinbase effect” has propelled 0x to number 22 in the rankings, only $60 million short of ZEC in twentieth place.

It should also be noted that when Coinbase were “exploring” the option of another coin it considered Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA) and ZCash (ZEC). Traders should keep an eye on the reporting section aagain as Coinbase may follow up with another of those coins more quickly than they have done previously. The last coin added to Coinbase was Ethereum Classic in July, however the company has faced calls from users to add more coins and there is also growing competition in the exchange market so the company will not want to be left behind, especially after the company received further investment of $500 million from Tiger Global, in a deal that saw Coinbase valued at $8 billion.

 

Tether Coin is Cracking as Goldman Coin Starts Trading

Tether Peg Cracks

The cryptocurrency market rallied on Monday after a crack in the tether stablecoin led to a surge in the price of Bitcoin. A fall of 3% in tether saw Bitcoin rallying from $6,300 to blow through previous resistance at $7,250 before settling lower on the day. The move led to gains across the entire spectrum of digital currencies with only tether showing a loss amongst the top twenty coins. The sell-off in the USDT peg is the latest twist after a bout of rumours regarding the Bitfinex exchange and problems surrounding tether wire transfers.

Tether (USDT) is a token that its creators claim is backed 1:1 by U.S. Dollars, yet this has been questioned by traders in the past. Despite spending the early years of crypto trading as the dominant stablecoin tether is now seeing some significant competition appearing on the horizon to take the throne. Binance have recently announced their backing for the $32 million Terra project, whilst the U.S. tech giant IBM have also backed a stablecoin project which will run on the Stellar network. The Gemini project, which was founded by the Winklevoss twins has also joined the recent stablecoin party with the arrival of the Gemini Dollar (GUSD).

Enter Circle

The real competition for tether may be seen with the arrival of Circle and its USDCoin (USDC), which started trading only a few weeks ago, which the company’s CEO stated was, “basically a dollar that operates on the blockchain.” The goal is to allow a stable bridge between buying and selling cryptocurrencies from standard bank accounts. The key difference with Circle’s offering is that the customers are required to hold $1 for every USD coin in order to provide price stability.

Why is Circle a company to watch? The company was seeded by investment banking titan Goldman Sachs. Never one to miss a bull market or dodge a bear market, Goldman joined a group of illustrious investors, including Accel, Baidu and the Chinese bank CICC in a $250 million financing round. Circle has made aggressive moves in the past months to acquire the Poloniex exchange, quickly adding new coins and alongside the USDC project the company has been putting the finishing touches on some retail products.

Not content with its plans to dominate the crypto space, representatives of Circle also found time to attend a cryptocurrency roundtable hosted by Congressman Warren Davidson at the end of September as lawmakers seek to get control over the nascent financial revolution. Is it possible that Goldman Sachs sees imminent crypto regulation and a flood of retail and institutional money appearing in the space? And is it a coincidence that the tether peg is starting to crack only weeks after the arrival of Circle’s own USD stablecoin?

Show us your dollars

Coincidence or not, tether is now backed into a corner and may be forced to show their hand on the claims that they hold enough assets to back the $2.25 billion market cap that sees the coin hold seventh spot in the cryptocurrency list. A refusal to do so may see an exodus to new stablecoins and a potential rout in the stablecoin. Tether have since released a statement to reassure investors that the dollar reserve, “…remains in surplus of the 1:1 backing of USDT and has more than the necessary currency on deposit to redeem all existing tethers.”

I don’t think they know how this game works!

Did We Just See the First Crack in Tether?

tether bitfinex

Cryptocurrency markets are higher this morning after the Tether stablecoin slipped to 95 cents on the dollar on the Kraken exchange. The move lower in Tether across the board led to a strong volume spike in Bitcoin, which moved from $6,300 to blast through previous resistance at $7,250.

Monday’s sharp move lower in the stablecoin is significant because criticisms have been levelled in the past at the claims that is each Tether is backed 1:1 by the U.S. dollar. The move is also significant because new stablecoins have recently come onto the market, including the “USDCoin” created by Circle. Fears over the Bitfinex exchange being insolvent have also been swirling and Tether sees large volume on the Bitfinex exchange.

This could be the first crack in Tether that sees traders move to other exchanges and stablecoins.

Will IOTA Dominate the Auto Industry?

iota carvertical

IOTA looks set to announce another partnership in the automobile industry, this time with CarVertical, a company that is seeking to reduce used-car fraud by decentralizing ownership data.

The impending news release was announced on Twitter by CarVertical who promised both communities a “huge surprise” that will bring benefit to consumers through Internet of Things (IoT) technology. IOTA have branded themselves as “The first open-source distributed ledger that is being built to power the future of the Internet of Things.”

CARVERTICAL IOTA

The CarVertical/IOTA is most likely an announcement that will see the car data firm utilizing the IOTA blockchain and although that news may not blow the minds of many in the blockchain community, it does at least highlight another use case for IOTA as they continuie to gain first-mover advantage in the potentially huge automobiles industry, while the rest of the crytpocurrency community seem to be chasing either big finance, or other small niche operations.

IOTA reeled in a much bigger fish in February of this year with an announcement that they would be partnering with the European car giant Volkswagen, to collect and evaluate performance data.  The Digital CarPass service was later scheduled for release in early-2019 and it was noted that a further five pilot projects were underway. The link between all three companies is in the knowledge that CarVertical won a competition to incubate their start up in Volkswagen’s Dresden incubator.

Volkswagen has previously shown interest in ledger technology and the company has employed its own “Head of Blockchain” to spearhead their projects. The German company sees “enormous potential” in blockchain, which they expect to see used in areas such as “maintenance, logistics and self-driving vehicles.” One spanner in the works for IOTA was announcement last week that Volkswagen were partnering with Microsoft to create an automotive cloud system that will aim to provide seamless transition between vehicles and homes.

microsoft volkswagen

The tie-up between the two companies will also see VW set up a base close to Microsoft’s headquarters in Redmond, WA, where Microsoft will provide technical assistance and staff.  This maybe highlights a potential drawback for IOTA in their attempts to dominate IoT, where they would end up competing with the might of a Microsoft.

IOTA is still the only large-scale crypto project that is targeting the automobile industry, which gives them first run at securing some valuable use cases and enticing the other car giants to use the technology. It’s possible that their blockchain could even creep into other IoT joint ventures like the one mentioned but for now they should seek to gain further traction in the manufacture and maintenance space.

IOTA are the first-mover in a valuable industry that nobody else is watching so it is currently theirs to dominate. That outcome is far from secured, but will be interesting to follow in the months ahead.

IOTA currently sits at number twelve in the list of coins by market capitalization with a value of $1.6 billion, only $250 million away from tenth spot.

IBM Launches Food-Tracking Blockchain

ibm crypto

IBM is finally ready to launch its food-tracking blockhain technology for commercial use after 18 months of testing. The U.S. corporation has been one of the key supporters of blockchain technology and has already signed up European supermarket giant Carrefour to use the new system.

Known as the IBM Food Trust Platform, the technology is now available to companies of all sizes in the food supply chain for a monthly subscription fee.

A spokesman from Carrefour commented on the tie-up: Being a founding member of the IBM Food Trust platform is a great opportunity for Carrefour to strongly accelerate and widen the integration of blockchain technology to our products in order to provide our clients with safe and undoubted traceability.

Walmart are another company that have previously supported blockchain technology and made a request for its suppliers to begin tracking lettuce and spinach supplies through a database system developed by IBM. As we see these giant chains begin forcing the new trust-based rules on their partners then IBM’s platform should be a key beneficiary.

IBM’s new food-trust platform is a revolution in the food suppply chain and we should continue to see this type of technology rolled out across the world for the safe tracking of all goods in all industries.

 

Oasis Labs Teams Up With A16z and Binance

oasis labs crypto

Oasis Labs have announced that they will have some strong backers for their blockchain startup hub. Accel, a16z crypto, Binance, Pantera Capital and Polychain Capital will all provide support for Oasis Labs’ programs.

The Oasis Startup Hub will be a startup incubator for blockchain projects, which focuses on “privacy-first cloud computing” and the project already has some launch clients with projects under development.

The founder of the Oasis Labs project is University of Berkeley Professor Dawn Song, who is an expert in security technology. Song claims that the Oasis approach has solved problems with scalability by separating execution from consensus,

“By having the computation committee working in parallel with the consensus committee only needing to verify the correctness of the computation creates an easier path to scalability.”

Coin Desk reported a comment from Accel Partners which highlighted the importance of data protection in the Oasis Labs projects, due to the recent string of “high-profile privacy failures.” The big tech firms such as Google and Facebook will eventually have to adopt some form of blockchain technology for data protection, with reports this week of another high-profile data hack. The latest failure has led to Google shutting down its Google+ social media platform amid claims that they failed to disclose the user breach for fear of reprisal.

The backing for the Oasis Labs project comes as Crypto Slate reported a 300% increase in venture capital investments in cryptocurrency this year.

 

0x Blasts Higher on Coinbase Listing Rumour

0x coin

0x has blasted higher as rumours of an imminent Coinbase listing appeared to be confirmed. Posting screenshots on a Medium article, users spotted that the ZRX coin had been added to the reporting section of the Coinbase platform.

ZRX was 16% higher on Monday as investors digested the news and anticipated a surge in volume through the addition to one of the largest and mainstream cryptocurrency exchanges.

The 0x protocol seeks to facilitate the the trading of any type of asset and have been prominent in gaming and prediction markets. In a Medium post in June, the project’s co-founder Will Warren stated their ambition to tokenize financial assets saying,

We envision a world in which all forms of value are tokenized on public blockchains. This includes fiat currencies, stocks, bonds, commodities, debt instruments, real estate, video game items, digital collectibles, software licenses, reputation and much more. …we can build a global financial system that is more efficient, transparent, and equitable than any system that has existed in the past.

ZRX has moved 50% higher from the September lows and is testing resistance near $0.80. Key resistance for ZRX will be around the $1.25 level.

ZRX may continue higher, however this rally highlights the short memory that traders often display. Despite an inital rally, Ethereum Classic (ETC) is 38% lower from its own Coinbase listing announcement in July, however we can give 0x the benefit of the doubt this time as the Ethereum blockchain has been under continued pressure with project’s like Tron surpassing Ethereum’s performance.

 

Tron Rallies 15% as Next Upgrade Is Confirmed

TRX coin

Tron’s TRX is up 15% in the last 24 hours as the project’s founder confirmed the release of a new upgrade.

Tron’s CEO Justin Sun took to Twitter to announce that the network will upgrade to Odyssey 3.1 and that the Tron Committee function and the Tron Virtual Machine (TVM) will go live, “marking the start of the smart contract era”.

justin sun

Sun confirmed that the upgrade will make Tron 200x faster than Ethereum and 100x cheaper than EOS.

In an interview with Investopedia, Tron’s founder also confirmed that he saw the financial industry moving to adopt the blockchain and that they plan to enter that space in the future.

Commenting on the smart contract issue, Sun said:

The TVM is fully compatible with Ethereum’s EVM. Additionally, it costs a fraction of one TRX to support smart contracts on the TVM and to create TRON accounts. Because the cost is so minuscule, we say “almost free”. By comparison, creating and supporting contracts on Ethereum and EOS can cost a user more than $10.

The price of TRX moved to test previous resistance near the $0.28 level. If we see a move higher, the next targets will be $0.40 and $0.80.

Circle to Tokenize Startups With Seedinvest Acquisition

tokenization

Crypto and fintech startup Circle are moving to acquire the crowdfunding firm Seedinvest with a view to tokenzing startups. Bloomberg reported on the move, which is the latest in a very aggressive few weeks for Circle where they have built up their retail product offerings, strengthened their Poloniex exchange and added a new stablecoin.

Circle CEO Jeremy Allaire commented on the tie-up:

“This was a company who had been at the forefront of collaborating with government to figure out how to make it possible to innovate in the way people raise capital. Crypto securities are going to become a major new category of securities that ultimately every business is going to adopt, just like every business has a website.”

The move into this market could see Initial Public Offerings (IPOs) almost disappear from the financial landscape.

Allaire was bullish on the future of tokenization, stating,

“It’s not just ‘how do we let companies do ICOs? It’s ‘how do we support the tokenization of everything?”

Circle Adds “Collections” to Its Retail-Friendly Portfolio

goldman sachs

Circle, a crypto and fintech startup funded by Goldman Sachs and Baidu has continued to build on its rapid development with another new product: “collections”.

Collections is another addition to the Circle trading portfolio which seeks to bring cryptocurrency trading to the masses. The feature allows investors to gain access to an investment theme: payments, privacy or platforms. This type of investment makes it suitable for investors who want to gain access to the space without doing the due dilligence and research. The feature is very retail-friendly, similar to the company’s “buy the market” feature, where investors can buy a basket of cryptocurrencies. With Collections, Circle will provide educational material to explain the purpose of the different groups and as crypto evolves, more collections may be added.

crypto news

These features are similar to the current options available in the tradtional finance market, where investors can buy a theme, such as “emerging markets” or “european banks”. The moves by Circle highlight what I have mentioned in my Medium posts recently: crypto regulation is coming and the insiders are building products for a pending retail wave.