Regulated States Of America
Market Report: 14th June 2019— Subscribe to our newsletter.
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OYR TWO SATOSHIS
The daily view from our desk
Police are trying out an unorthodox tactic in Nottinghamshire, they are handing out blunt knives to victims of abuse. Instead of arming the public perhaps they should turn their attention to the internet, specifically the instructional videos that teach you how to steal a car. Or perhaps they should be concerned about the growing trend in job listings for ninjas.
REGULATED STATES OF AMERICA
BINANCE IS OFFICIALLY OPENING UP IN AMERICA. BUT CAN THIS CLOSE DOWN ITS US BUSINESS?
Another day has passed and another weekend is ahead. Bitcoin climbed an additional 2% over the past few hours, depleting the top 100 alternative cryptoassets by the average tune of 1%. To be fair, alts may also be bleeding because Binance, the cryptosphere’s premier alt casino, has announced it will launch a US-based exchange “soon”. This may seem bullish, but things are cryptic.
This is due to a simultaneous change in its terms and conditions, stating that from the 12th of September onwards the main Binance exchange will stopaccepting US users. As Larry Cermak hints, it’s likely the US-version will mimicthe steps of other country-specific exchanges launched by Binance — which do not offer alts for trading. Meanwhile, BNB, the exchange’s token, has fallen 12%!
THIS WEEKEND WILL BE KEY
BUT NO ONE HAS ANY IDEA OF HOW IT MIGHT PLAY OUT, SO MOVE SLOWLY AND PLAN AHEAD
To add to the speculation, note a quarter of Binance’s traffic originates in the US. Larry further emphasises how other exchanges are tightening up the grip on alternative cryptoasset trading within US soil. And VPNs might not be enough to stop the carnage. However, this only means fewer alts will be traded. After all, Coinbase is fully regulated and has onboard plenty of new tokens recently.
Yes, said brave new coins can also be delisted, but we’ll always have litecoin, right? Anyway, Alex Krüger is wondering if alts winter is coming and if BNB’s reign is coming to an end. Ironically for the space, could this mean Bitfinex’s controversial new exchange token, LEO, will continue to untether itself — given how appreciated its token economics are, as Maple Leaf Capital shows?
WHAT YOU CAN’T MISS TODAY
DON’T LEAVE FOR THE WEEKEND WHAT YOU SHOULD READ TODAY
▪ If you’re expecting BTC to break out this Friday and start mooning again, consider Jonny Moes more rational scenario. This chop is here to liquidate you.
▪ If you don’t buy the BTC is bullish narrative, and are still stubbornly expecting for sub-$6k, then Felix’s gloom is something that will surely comfort you.
▪ If you want to know what answers we need before understanding the implications of Binance’s news, Crypto Quantamental does the best job.
▪ If you want to convince someone that cryptoassets are legitimate, tell them Facebook’s stablecoin will be backed by Mastercard, Visa, PayPal, and Uber. Not!
▪ If you want to know more about LEO, the co-founder of Three Arrows Capital was just interviewed on their overall investment strategy and their LEO thesis.
▪ If you’re looking into applying classical financial theory to cryptoassets, Galaxy Digital just re-published their “Modern Portfolio Theory Case for Bitcoin”.
QUOTE OF THE DAY
DO YOU THINK BITCOIN COULD BE THE INTERNET’S CURRENCY?
“I haven’t seen any other currency that would challenge it (Bitcoin) across the dimensions that I think are really important. First, I think it has an amazing brand. The other thing that I think makes it probably the strongest candidate is that the principles behind it are very pure. The creation of it was very pure, and focused on a public good, rather than any other particular agenda.
The fact that it’s meant to be deflationary, meant to incentivize savings instead of spending, I think is a net positive for the world and how we think about consuming. Because it is a scarce resource, it has a probability of always increasing in value, which makes you consider a lot more how you spend it. Because you know that spending it today — it might go up in a week. And purchasing coffee, or a new sofa, with that really puts everything in perspective. Do I really need this? So from a psychological perspective, I think that’s interesting.
And finally, I think it’s been resilient. It’s 10 years old now, so it’s been tested over those 10 years, across every dimension from security threats, to governments, to forks, to agendas from miners, to nefarious nation-states, and it’s been resilient to all those threats and challenges. And resilience is very valuable. There could be an upstart cryptocurrency that could challenge it, but it doesn’t have those tests and that memory of those challenges built into it.
The community around it is very passionate, and it’s been a dream for cryptographers for 30 or 40 years. So to realize something that is now usable, there’s just so many people who want to make it happen and want to make it better. And I think they do so with the right principles, I think they do so with the internet principles of having a connected world where anyone can participate and everyone has equal access. I think it’s quite powerful.
- By Jack Dorsey