International News

As Binance continues to make the news with significant 2018 profits, updated interfaces, and increased security, CEO Changpeng Zhao has taking a firm stance in defense of ICO’s. He was quoted on May 7 saying:

“Through my own experience, and watching hundreds of other projects at a close distance, I would say raising money through ICOs is about 100 times easier than through traditional VCs, if not more. With the ease of raising money increased, logic says there may be 100 times more startups, well-funded startups, where ICOs are allowed.”

Nobody should be surprised by this statement, considering all of the cryptocurrency on Binance got established through these same methods of funding. With criticism on the illegitimacy of the ICO process, I am in firm belief that there is a middle ground to easing access for Venture Capital to flow into these startups while maintaining the elements of legitimacy that are required to be a legal entity.

Shark Tank host Kevin O’Leary has openly mentioned that he believes Asset-Based Coins will soon replace Small Cap Stocks, with SEC regulations allowing fast moving start-up companies to issue their own token. This token release process may be like an ICO, but having regulation and legitimacy will spark a significant change in the way tokens are administered, traded and used. As the cryptocurrency markets get purged through the process of regulation, ICO’s will have to prove that the project is providing a legitimate service, ultimately bringing greater legitimacy to the entire market.

South Korean Incoming governor of the Finacial Supervisory Service (FSS) Yoon Suk-heun has discussed softening South Korea’s stance on cryptocurrency. South Korea reportedly banned ICO’s last September, and threats of further bans on cryptocurrency in Asia have been a major source of Fear, Uncertainty and Doubt (FUD). The South Korean Financial Watchdog Chief has mentioned the potential to ease ICO’s back into the system, promoting a sense of legitimacy after the purge of many Korean exchanges.

 

US News

Ethereum had a big change in price over the past week, based on what appears to be a fake news story of a meeting set to take place with the SEC and CFTC to discuss if Ethereum should be viewed as a Security or a Commodity. While both regulation boards have their stances on the matter, they don’t matter, considering the meeting was just a rumor and did not occur. The price of Ethereum went from $830 to $700 in a short period of time upon realization of the hoax, proving yet again how the cryptocurrency markets can be manipulated by news and hype. More fake news, who would’ve thought.

Douglas Maughan, Director of Science and Technology Directorate’s Cybersecurity Division, presented before 2 Congressional subcommittees on Tuesday about the use of blockchain technology to improve supply chain management and combatting counterfeit goods. After he educated our country’s leadership in the nature of blockchain technology, discussion of application to the supply chain industry led to indication that the addition of blockchain technology and smart contracts could give the shipping industry an update it has not received since the 1950’s. The conversation tried to steer away from talks of cryptocurrency, and by the end of the conversation there were extremely positive reviews as to the potential applications of blockchain technology to supply chain management. The following two quotes should summarize how the presentation went.

“I think the applications [of blockchain technology] are almost limitless.” – Douglas Maughan

“I believe America should take the lead in blockchain research.” – Rep. Don Bayer of Virginia

 

Price Snapshot and Look Ahead

May started with a bang and a challenge of the infamous $10,000 resistance level.  Unfortunately, Bitcoin was stopped short of eclipsing the key $10,000 level before retracing towards support around $8500.  The overall marketcap for the sector remains teetering around $400B but bulls need to step in at the start of the week or the key $8000 support may fall.

Monday kicks off Consensus 2018 in New York City and is traditionally a bullish event, but if 2018 has taught us anything it’s don’t take any gains for granted!  Check out our Instagram or Facebook pages for any breaking new headlines for this week’s Consensus event.

 

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