In a recent article we highlighted the “Coinbase effect” that led to a 30% rally in 0x after it was officially listed on the cryptocurrency exchange.
The Coinbase rally and the rumour rally that preceded it led to big gains for 0x speculators. We mentioned that 0x was spotted on the exchange’s reporting section days before the coin was announced for Coinbase Pro. The rally seen in 0x has led to another bout of FOMO and the four coins that we noted in our article are all showing gains today.
Coinbase had previously mentioned that they were exploring the possibility of five coins. These coins were: Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA), ZCash (ZEC) and of course, 0x (ZRX). The four remaining coins are likely seeing gains from speculative buyers who are hoping to predict the next listing rally.
Coinbase has recently adopted a new listings policy, which allows project founders to complete an application form to be considered for a potential listing. The move came following criticisms over the previous selection policy, requests from users that they wanted more coins to trade, and more importantly to catch up to the growing competition from rival exchanges. With a new improved listings policy and a lofty valuation to keep up with, you can expect to see another coin listed more quickly than they have in the past.
Pantera Capital’s CEO Joey Krug stated that he saw a 10x gain in cryptocurrencies “in two years”.
Speaking to Bloomberg, Krug stated that he saw, “solving scalability” as the key issue that’s currently holding many investors back from investing in the space. He also said that although Bitcoin will likely never get there, he expects to see blockchains that are, “faster than Visa or Mastercard in a couple of years”. Solving the scalabilty issue is a key investment theme for Pantera would be the driver for the 10x growth in crypto over the next two years according to Krug.
Pantera were founded in 2013 as the first U.S. blockchain investment firm and the company are “one of the largest institutional owners” of cryptocurrencies, according to their website.
Qtum has announced that they are partnering with Amazon Web Services (AWS) in a “ground-breaking” deal to explore Blockchain-as-a-service (BaaS).
Further details of the tie-up were released on Qtum’s blog. The Singapore-based project will provide smart contract development on AWS. Developers will be able to launch smart contracts via an Amazon Machine Image (AMI). As the platform grows AWS and QTUM will expand their services for developers and customers.
The deal makes Qtum the first open-source blockchain to partner with AWS and the foundation’s CIO Miguel Palencia commented,
Qtum’s launch on the AWS marketplace provides an easy-to-use and powerful cloud-based solution for end users and enterprise. Anyone who wants to develop and build dapps on the Qtum platform or use it as a staking node will benefit from this.
News of the AWS deal has seen a 6.58% gain in Qtum’s price to $3.91 and the coin currently has a market cap of $348 million according to data from coinmarketcap.
Qtum have been given the greenlight by AWS to show their worth in the smart contracts arena. If they do so, further opportunities may lie in wait with the retail giant.
Gary Cohn, the former Goldman Sachs COO and economic advisor to President Trump has announced his next role will be as an advisor with a blockchain startup.
Cohn will be joining Spring Labs, which is building a decentralized network for identity and credit. The company aims to create a “more transparent and secure” financial services industry. Critics were quick to jump on the move by claiming that this was a fall from grace, yet you don’t get to become the COO of Goldman Sachs for 11 years by making dumb and hasty investment decisions.
Cohn served under the Trump administration from January 2017 to April 2018. He left due to economic differences between himself and President Trump. The decision came after Trump announced his plans to impose import tariffs, which started the trade war between the U.S. and China.
Spring Labs has offices in Los Angeles and Chicago. The company raised $15 million without the need for an initial coin offering (ICO). The plan is to work on the network’s architecture before any digital assets are created.
Billionaire cryptocurrency bull Mike Novogratz believes the market will see a rally in Q1-Q2 2019 from institutional buying.
Talking on Bloomberg, Novogratz made his comments on the same day that Fidelity – the fourth-largest asset manager in the world – announced their first concrete plans for institutional cryptocurrency products.
Novogratz highlighted institutional desire for custody products, which Fidelity are aiming to offer and talked about the “credible” names that are now entering the market and boosting investor confidence in the space. The Galaxy Digital investor said that Fidelity should be running by Q1 2019 and once the market “runs some water through the pipes”, the rally will develop through Q2.
Boston-based Fidelity, who currently have $7.2 trillion in assets under management (AUM) have announced that they are setting up a standalone company named Fidelity Digital Assets. The company plan to offer trading and custody services for institutions only, however the move will add further weight to the sector that will ultimately lead to further retail volume.
Mike Novogratz went on to state his thoughts on Bitcoin, where he saw $6,800 as an important level to break to get people excited, with $10,000 being a “big number”. He stated that new highs in Bitcoin were possible in early-2019 if the institutions start getting involved.
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.
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).
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.”
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.
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.”
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.
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 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.