What You Need to Know in Crypto Week 3

Bears are hungry…

A brutal punishing across the markets saw Ethereum pushed below $200 for the first time since November 2017, and Bitcoin falling more than 10% in 24 hours.

The reason for the decline is unknown, though some suspect it is due to Goldman Sachs delay to launch a Bitcoin trading desk.

Exchange drama…

The Kraken exchange, most recently the 11th largest exchange globally has laid off dozens of people, according to a persistent rumor concerning its Halifax, Canada office. According to some, the exchange offices went be several different names, including “Poseidon”, “Seven Cities”, and “Payward Canada”. Kraken support denied the rumor saying there were no layoffs, and no security breach.

The founder of OKex exchange, Star Xu, has allegedly been detained in China on suspicion of currency fraud. The police are holding him in Shanghai Weifang Xincun police station in connection with allegedly fraudulent practices of one of Xu’s other companies, WFee coin. Although OKEx recently had its highest ever trading volumes in July, the news of Xu’s detention caused a 3 percent drop in 24 hours.

Athletes on the blockchain…

Two professional sports teams, are getting in on the cryptocurrency game, first the Los Angeles Dodgers, offering player tokens in a giveaway for fans attending games that will be convertible to Ethereum.

Meanwhile professional football team Paris Saint-Germain will create a so-called Fan Token Offering powered by chiliZ. The tokens will be more than simple collectibles, but allow VIP status at games, rewards, and voting participation in such decisions as the team’s logo, and stadium music.

Double claims for “first ever stablecoin”…

Paxos has launched a new Ethereum blockchain-based stablecoin called the “Paxos Standard” which is to be backed 1-for-1 by US dollars. Regulatory oversight will be provided by the New York State Department of Financial Services. An almost exactly identical project as an ERC-20 token has also been launched by the Winklevoss Twins’ Gemini exchange, dubbed the “Gemini Dollar”. Both claim to be the “world’s first” US dollar backed stablecoins and intend to demonstrate cryptocurrency compliance with existing monetary laws.

Coinbase is in talks with BlackRock, the largest ETF provider to create a crypto ETF. With these two heavyweights working together, it is likely that they may succeed in a U.S. Securities and Exchange Commission approval after the previous nine denials.

In other positive news, a recent report by SharesPost Financial Corporation showed both accredited and institutional investors still bullish on digital currency, with more than 59% planning to increase their holdings in cryptocurrency over the next 12 months. The most popular coins remain Bitcoin, followed by Ethereum and XRP.

That’s it for this week!