Thursday, October 4, 2018

Crypto News Recap: Cryptocurrencies are trading slightly higher, reversing a 3-day slump

Crypto News

  • A report released by technology research company, ReportLinker, projects blockchain technology in the US manufacturing sector to maintain an 80% per annum growth rate and to be worth USD$566 million by 2025. The report details that the manufacturing sector stands to benefit from blockchain technology as it will simplify business processes, maintain transparency, and eliminate intermediaries in logistics and supply chains. The report also cites several growth drivers for blockchain in the manufacturing sector, including the growth of blockchain-as-a-service solutions and recent increases of venture capital investment in blockchain.  
  • According to Matthew Allen, the Assistant Director of Domestic Operations with the US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation division, a “vulnerability” is created when criminals convert cryptocurrency to government-issued fiat currency. While discussing the role of cryptocurrencies in drug trafficking before the US Senate Caucus on International Narcotics Control, Allen detailed that when cryptocurrencies are converted to fiat currencies, criminals can be identified and tracked by law enforcement. Allen went on to note that his Homeland Security Investigation division has had some levels of success in tracking criminals who used cryptocurrencies to launder funds from narcotic sales.  
  • Acing, a cryptocurrency startup working specifically on the lightning network, has received USD$1.7 million in a funding round led by Serena Capital. Acing works on improving the lightning network, a network layer that sits on top of cryptocurrencies like Bitcoin (BTC) and enable higher transaction volume capabilities. The lightning network entered beta testing earlier this year with individuals using it to send real money, however, the technology is far from complete. Currently, 113.12 BTC are tied up in the lightning network, or USD$741,818.86.  
  • Head of the International Monetary Fund (IMF), Christine Lagarde, believes global markets are on the verge of another financial crash. Lagarde detailed that global debt in both the public and private sectors have reached an all-time high of USD$182 trillion -- a 60% increase since the Great Recession in 2008. While speaking at the IMF’s annual meeting, Lagarde said, “large challenges loom for the global economy to prevent a second Great Depression.” Lagarde went on to detail that rapid technologic advances in financial technology pose increased cybersecurity risks, leaving global markets further vulnerable.  
  • Long-time crypto bull and founder of merchant bank Galaxy Digital, Mike Novogratz, said while speaking on stage at the Economist Finance Disrupted event in Manhattan that he does not believe Bitcoin’s price will crack USD$9,000 before the end of 2018. This represent a trip in Novogratz’s price forecast for Bitcoin after he predicted during last year’s bull run that Bitcoin’s price would surpass USD$40,000 in 2018.  
  • Poloniex, a US-based cryptocurrency exchange, announced Wednesday of plans to remove margin and lending products and to delist three digital assets for US customers. In the announcement, Poloniex explained that this move affecting US-based customers is an effort to ensure the crypto exchange remains within regulatory guidelines. Poloniex plans to delist the three cryptocurrencies on October 10th, and they include Synereo (AMP), Expanse (EXP), and Gnosis (GNO). Poloniex is currently the 46th ranked crypto exchange in the world by trading volume. 
  • The price of Tether (USDT), the most widely used stablecoin, fell by ~1% yesterday and resulted in a premium on USDT-to-cryptocurrency trades. Tether is the cryptocurrency market’s largest stablecoin and is backed by USD$2.8 billion stored in a Tether LLC bank account in Puerto Rico. One reason for USDT’s price drop yesterday is a large selloff of USDT by investors, potentially to invest in other cryptocurrencies like Bitcoin or Ethereum.  
  • US Congress members, Doris Matsui and Brett Guthrie, have introduced a bill to the US House of Representatives, titled the, “Blockchain Promotional Act 2018”.  In an announcement Monday, Representative Matsui detailed that currently, there are several different definitions for blockchain technology depending on the situation.  The Blockchain Promotional Act 2018 bill proposes the creation of a working group in the US Department of Commerce to form a standardized definition of blockchain.  
  • US investors and Japan’s Mizuho Bank have requested a delay in the lawsuit accusing Mt. Gox of creating transaction difficulties for users as Mt. Gox was in the midst of a collapse. The purpose of the delay request is to allow the plaintiffs time to understand if they will be fully or partially compensated for losses related to the collapse of Mt. Gox. This delay comes as Mt. Gox trustee, Nobuaki Kobayashi, revealed that USD$617 million was raised through the sale of Bitcoin that were recovered from the collapse -- a sum that is believed to be adequate to pay claims in full and not partially as previously thought. 

Sources:

r/https://cointelegraph.com/news/report-blockchain-in-manufacturing-market-will-be-worth-500-million-by-2025 
r/https://www.coindesk.com/us-customs-official-says-crypto-conversions-leave-criminals-exposed/ 
r/https://www.coindesk.com/bitcoin-acinq-raises-1-7-million-lightning/ 
r/https://1ml.com/statistics 
r/https://www.newsbtc.com/2018/10/04/imf-rapid-development-of-cryptocurrencies-poses-challenges-to-financial-system/ 
r/https://www.ccn.com/crypto-bull-mike-novogratz-trims-short-term-bitcoin-price-forecast-again/ 
r/https://www.newsbtc.com/2018/10/03/novogratz-turns-bearish-on-bitcoin-short-term-wont-break-9000-before-2019/ 
r/https://cointelegraph.com/news/crypto-exchange-poloniex-removes-margin-and-lending-products-for-us-users 
r/https://coinmarketcap.com/exchanges/volume/24-hour/ 
r/https://www.ccn.com/tether-price-falls-on-crypto-exchanges-how-will-it-affect-bitcoin/ 
r/https://cointelegraph.com/news/us-legislators-introduce-bill-to-find-common-definition-of-blockchain-technology 
r/https://www.ccn.com/mt-gox-users-mizuho-bank-seek-delay-in-lawsuit-to-await-compensation-outcome/


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