Newconomy Media Weekly Digest

Week review: Happy End of Bitfinex Story, Volatility, Crypto Takes Over U.S. Retail  

 
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In this article, we recap the most important events of the previous week, including major announcements, deals, and token sales. This week, 13-17 May, we have seen the more and more volatile cryptocurrency market, and more major international companies made blockchain-related announcements.

Happy end of Bitfinex token sale

Despite the accusations from U.S. authorities and hesitation that the blockchain community expressed, the troubled Bitfinex crypto exchange has declared it has achieved a goal of raising $1 billion through a private token sale, required to keep its Tether coin afloat (read the whole story in our long read).

The news came from the Bitfinex CTO Paolo Ardoino. Despite the runaway success of the token sale, he also hinted “there is a small allocation” of tokens left from the round that might be offered in a public sale.

Horse racings of crypto market

We showed in our analyses that the Bitfinex case is a factor of BTC price fluctuations, which behaved pretty wild in the latest weeks.

First, the uncertainty around the trading platform and its presumptive failure sent the crypto market prices on a downward spiral, with investors in a panic over the lack of integrity in the market’s structure. In contrast, positive news about the successful token sale pumped the BTC price.

Overall, the bull run had been continuing throughout the past week, with BTC steadily breaking the $8,000 level. Although, on May 16 it has suddenly lost about 10% and is currently staying on the $7,200 rate.

Still, on May 14 the acclaimed analyst Tom Lee called the community to HODL for 10 more days. He reminded that “BTC historically generates its annual performance in 10 days”, so this “unconfident” bull run may be that long-awaited period.

Besides the Bitcoin realm, altcoins also show inspiring results. For instance, the price of the third most valuable coin, Ripple, has managed to show double-digit growth in one day, recovering from the 6-month  the second top performer in the top-10, adding a whopping 11.8 percent in the last day, breaching important resistance levels and hinting of underlying demand.

Why Facebook lifted the ads ban for the crypto?

Social media giant, Facebook has suddenly removed restrictions on cryptocurrency-related ads on its platform. However, there are speculations that with this step, Facebook is simply preparing for the launch of its Face Coin and its “Project Libra”.

Face Coin is the cryptocurrency that would allow users to transfer value via the WhatsApp messaging platform, belonged to Facebook. In its turn, Project Libra is reportedly a digital currency that would allow Facebook users to make purchases within the Facebook platform.

Blockchain is money-saver

According to the research conducted by the Santander InnoVentures, Banco Santander’s corporate venture arm, blockchain technology poses great opportunities for global finances. Analysts conclude that banks can reduce costs associated with “cross-border payments, securities trading, and regulatory compliance by between $15-20 billion per annum by 2022”.

Meanwhile, many banks have already stepped on that ground. This week, one of the leading European banks Societe Generale announced it has successfully issued the first covered bond, worth 100 million euros ($112 million) as a security token on a public blockchain.

Not only the DLT is being actively adopted in the financial industry, but also in the retail. Flexa has agreed with thousands of U.S. companies like Whole Foods, Starbucks, Nordstrom and of others on providing its solution.

Particularly, Flexa will integrate its cryptocurrency app called Spedn into digital scanners utilized by many big retailers for accepting phone-based payments (like Apple Pay).

As the payment-rail adoption is considered by many to be the holy grail of mass-consumer uptake, and could pave the way to global use of cryptocurrencies, some noted that Whole Foods is owned by Amazon, so it may soon give up ignoring the new currency.

DAO Club meeting

On May 16, we have successfully held the weekly meetup of our DAO Club. The community has chosen several experts that were interested most from the suggested list through the voting mechanism.

The first speaker was Jenny Yang, editor-in-chief of the BlockGlobe, a leading news outlet about DLT in China. She commented on Donald Tapscott’s statement that the Chinese government will eventually make turn its national currency into a digital form. Moreover, she had a chat with a high-tier government official another day, who confirmed that the government is considering this possibility. A group of specialists in blockchain was hired by the Central bank of China for that job.

Next, Ilya Panteleimonov, financial consultant and the President of the Logic Planning Group Russia. He shared his vision and primary rules of wealth management. After him, law expert and Managing partner at Mindsmith.io Ruslan Yusufov covered fundamentals of the “legaltech” (legal technologies) industry.

Besides them, several more speakers have expressed their expertise in different topics for members of DAO Club. Don’t forget that you can become one of them!