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Happy Friday everyone!
We are finishing off the week with weekend reads and our first Messari Engineering blog. Want some deeper technical insights from our engineers? Interested in the problems we face while building Messari? This series will keep you up to date with our developers and hopefully teach you a thing or two along the way, starting with our first post Catching bugs in React using TypeScript.
And now on to our weekend reads.
📚 Messari’s weekend reads:
Cryptocurrency movement over time - Cointracker
Which new business models will be unleashed by Web 3.0? - Max Mersch
Facebook expects to be fined up to $5 billion by F.T.C. over privacy issues - Mike Isaac and Cecilia Kang
Lightning is only the beginning: The emerging bitcoin stack - Spencer Bogart
Your new START explainer: The value of cooperation on nuclear arms control - Jessica Sleight
Ari Paul's tweetstorm on Tether/Bitfinex - Ari Paul
The Truth About Staking Yields - Felix Lutsch
Have a good weekend, y’all.
- The Messari Team
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Messari Compression Algorithm
Content and thoughts from around the web as summarized by the Messari team.
🏝️ [Analysis] Crypto’s long road to acceptance may have started here - Alastair Marsh
As the crypto market melted in Dec. 2018, market movers and traders from top crypto firms like Mike Novogratz’s Galaxy Digital Holdings, Circle, Binance, and Coinbase met in Singapore to discuss the foundations for a crypto derivatives framework. Noting the negative connotations crypto held in the legacy system, the traders understood the need for streamlined and orderly systems to take crypto mainstream. Of chief discussion was over-the-counter (OTC) trade desks and the development of a crypto derivative clearinghouse that would both increase trading volumes while radically lowering trading costs. The Liquidity Offset Network, a clearinghouse claimed to be opening in July 2019, was the Singapore meeting's baby. With the new clearinghouse, traders could finally eliminate the need for posting collateral on trades with counter-parties, opening up the market significantly. As the author puts it, the road still has bends to pass, but the Singapore team put crypto derivatives further on the road to success. (share or read more)
⚡ [Analysis] Lightning is only the beginning: the emerging Bitcoin stack - Spencer Bogart
As Spencer Bogart of Blockchain Capital sees it, a secondary layer on Bitcoin ($BTC), like Lightning, is only the beginning. Lightning innovated and expanded on payment channels for Bitcoin opening up transactions to multiple users in a seamless way. As the number of blocks on the Bitcoin stack increases, the potential for practical systems should grow exponentially. These new systems will be of both centralized and decentralized nature: practical tools, programs, or services taking advantage of the first programmable money. Like the internet in the rotary age, we cannot see where the market will take Bitcoin. All we can do is recognize the enormous potential and invest accordingly. (share or read more)
Quick Bits (Don't read that, I read it for you)
Choke Points (Exchange News)
💪🏽 The New York State Attorney General (NYSAG) is suing Bitfinex and the affiliated firm Tether, reports The Block. Documents provided in the lawsuit claim that $850 million remains inaccessible to Bitfinex and they have not publicly disclosed the loss of funds. The NY AG’s office has reason to believe several New York and US-based traders transact on the firm’s platform. (share or read more)
😲 According to The Block 20% of Bitfinex's cold wallets have been withdrawn. A total of 17,250 Bitcoin ($BTC) worth $89 million and 633,300 Ethereum ($ETH) worth $96 million has been pulled from cold storage to different wallets, either owned by Bitfinex or customers beginning to pull funds. As of press time 102,285 Bitcoin worth $525.5 million and 1.62 million Ethereum worth $245.6 million were still held in Bitfinex's reserves. (share or read more)
Startup Signals (ICOs, Cryptos, and Startups)
💵 Genesis Capital Management lent some $425 million of crypto in Q1 2019, bringing the total to $1.53 billion since it first began lending in March 2018, according to a report. From January on, Genesis' outstanding loan portfolio was up 17% with $181 million outstanding as of March 30th. The average loanee pays back in six weeks with only 3-5% of Bitcoin ($BTC) loans going to short sellers. Over the period, Genesis lent 68% in Bitcoin, 6.7% in $XRP, and 3.6% in both Litecoin ($LTC) and Ethereum ($ETH). Fiat loans, launched in late 2018, make up 10% of Genesis' loans. (share or read more)
🌊 Sales of $XRP rose 31% from Q4 2018 to Q1 2019 jumping from $129.03 million to $169.42 million. Institutional and programmatic purchases increased by 54% and 21% respectively quarter-to-quarter, while total traded volume decreased by 2% from $54.82 billion to $53.85 billion over the same period. Ripple released 3 billion XRP from escrow while returning 2.3 billion to escrow-contracts, increasing the total supply outstanding by 700 million XRP for what Ripple said were 'ecosystem' support purposes. (share or read more)
The Powers That Be (Legal/Reg/Policy)
🇮🇳 India's The Economic Times has reported that multiple Indian governmental departments are circulating a draft bill entitled "Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019." A committee of various economic departments is also considering banning digital currency under the Prevention of Money Laundering Act (PMLA). CoinTelegraph notes that since December, multiple reports have surfaced from India on digital currency bans but have yet to be founded by action. (share or read more)
👨⚖️ A federal class action lawsuit has been raised against Atonomi for failing to register as a securities offering in what the plaintiff argues amounts to an investment contract. According to lawyer Stephen Palley, the prosecutors are trying to hold the Atonomi management team personally responsible. The lawsuit cites both a 98% drop in value, no acutal token utility, and failure to lock up tokens for 12 months as chief concerns. (share or read more)
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