Crypto Market News – “This Week in Crypto” July 17, 2020
Crypto Market News Highlights
That is kinda interesting. Kevin’s question would be — where? They’re not licensed to do anything, so they wouldn’t go in any licensed markets. Are they going to go into something even less licensed, less regulated than crypto?
[16:47] Unprecedented Twitter Breach: Barack Obama, Jeff Bezos, Joe Biden, Dozens of Celebrity Accounts Compromised in Bitcoin Giveaway Scam
This is actually halfway through. Kevin did a session on Digecon live, breaking news with them about this Twitter hack.
It was Twitter that was hacked. A social engineering hack that gave the hacker(s) access to basically a “God panel”. So, admin panels usually have user access, read-only access, admin access, and “God access”, which means you can do anything you want.
Why would Twitter need the permission to tweet on behalf of others?
R3/Corda Blockchain have been trying to court different players in the traditional space. We looked at it for Ignium, in conjunction with CoinMetro for the Montenegro sandbox. And Kevin thinks there is still a lot that can be done. When you look at where issuance is happening right now, it’s Ethereum. Where is liquidity for issuances, DeFi and other things — it’s Ethereum.
In general, it has scaling problems, it has network congestion problems, all those things are true, but that’s still where the clients and liquidity are.
So R3 trying to use some of their technology to better the traditional bond market — Kevin will give them a hint. The reason the bond market doesn’t work as well as it could be, is because of access, not because of cost, streamline capabilities, or the ability to do maybe reconciliation — or not have to. Those things are great, they may save a bit of money, but they won’t save the bond market.
Check out our Medium post to read more crypto market news!
Live Questions – CoinMetro updates and Crypto Market News
[1:57] When are we getting SWIFT back? – Musab
We are still waiting for our provider for EUR SWIFT, but AUD and SEK deposits and withdrawals should be live via SWIFT next week.
[34:19] Have you had any interest in the CSD yet from individuals, companies, exchanges, or other organizations? – cryptoTC
Yes. Everybody we talk to shows some interest. That doesn’t mean all will follow through. We’ve talked to incumbents, we’ve talked to other people trying to do the same thing in crypto, we’ve talked to lots of issuers. And there is a lot of interest. Raising money, especially in that gap, is difficult and expensive.
[35:26] You mentioned that CoinMetro will want to be the next Nasdaq. Can you explain more about it? If CoinMetro can be the next Nasdaq, then CoinMetro valuation could be billions. – 炎炎林
When Kevin said the next Nasdaq, he meant in proportion what this could actually mean for CoinMetro, Ignium and the sandbox. Nasdaq is a tech company that showcases their tech in New York and Latvia, by way of centralized securities exchanges in the traditional market.
They’re a tech company, and an infrastructure company, at the core. And we’re building a lot of the same infrastructure in combination with Ignium, that will do a lot of the same things that Nasdaq does, with a lot less intermediation, much less cost, more streamlined, with a plan for how to make it accessible to many more people.
So Kevin thinks we could be bigger than Nasdaq, and the digital market will definitely be bigger than the current marketplace for traditional assets — in time. It will open the door to much more issuance, and to much more active investors.
[54:44] Can Chinese people participate in CoinMetro? Is there a cryptocurrency exchange ban? – 炎炎林
We can take Chinese clients, we’ve always been able to take Chinese clients. There is no ban for Chinese citizens to deal with an exchange outside of China. The ICO ban was for Chinese citizens creating ICOs, or investing in them.
[29:07] Who do you see as direct competitors moving forward in the realm of STO’s listed on exchanges? will you be primarily focused on dominating the Euro zone for accredited and unaccredited investors? – Stubble & Stout
Initially, yeah. We will be in 14 Safe Harbor countries in the EU. We don’t know of a competitor that provides distribution, primary, secondary, that actually follows Safe Harbor rules and allows retail investors in the European Union.
Kevin does know of companies around the world doing small accredited offerings. In the coming years, the competitors will be traditional incumbents, things like Nasdaq and Euroclear. These incumbents will eventually move over to a digital realm.
What we are looking to serve are raises that are as little as thousands, to raises that are as large as billions. The larger you go, it would seem like it makes it easier to raise that money — not really. This gap between the crowdfunding laws up to a million, and up to eight million under Safe Harbor rules, is usually the hardest area to raise money in. The big boys don’t want to get in, they feel it’s not enough. So it means you have to focus on smaller investors. And at this point, there is no infrastructure to do that. That’s the problem, and that’s where Ignium comes in, and CoinMetro on the secondary side.
So you will see other MTFs come into the picture for secondary market trading. You will probably see some CSDs, GFX outside of Gibraltar is looking to launch a CSD in 2021. They have a bit of a different focus than we do, but they’re looking to do it. Capital is not a problem for them and they probably will do it. The competitors don’t have the same exact plans as we do, and their architecture is completely different. So, you will see competitors come out on the market. But right now, Kevin doesn’t see many, if any.
Advantages of CoinMetro
[32:09] What is the biggest advantage CoinMetro has over other exchanges and projects, like Uniswap? – Brian Ortega
That depends on who you are. Kevin would say that in the future, even “unregulated tokens” are going to arrive into a regulated marketplace. Because once you start to have a more of a network of MTFs and regulated exchanges, liquidity from institutions will flow into those exchanges, retail people will follow. More regulation will follow to protect those retail individuals.
So things like Uniswap have a short lifespan. What does short mean? A month? Probably not. 3-5 years? Could be. 10 years? Most likely, yes. There is a limited lifespan for unregulated, decentralized “utility token swap vehicles”. And that can be partially because of the regulatory side, it can be partially because once the regulation starts to become stronger, the framework becomes better and adaptable to this business. Decentralized platforms are going to show much less interest to the mass public. They will get better and create technology for non-custodial high-frequency trading. That will be great for people that can actually connect to these types of services. But most high-frequency traders in traditional markets don’t care about “not your keys, not your crypto”.
[38:12] What feature are you most excited to see roll out in Q3? – krispy kreme
The Montenegro, CSD, Ignium, CoinMetro – issuance — is big. That’s what Kevin is most excited about. Not just about the launch, but how it evolves in the future. It can very well be the future of how financial markets start to be created and grow. So, that’s super exciting for Kevin, coming from the traditional space, and starting to see the real application of what blockchain and crypto can do to the financial marketplace, not just buying Starbucks coffees with the Lightning Network.
Everything else on our roadmap is amazing in its own right, but that’s the biggest one to Kevin.
Check out CoinMetro’s Q3 Roadmap!
[46:22] Do you expect a significant rise in the XCM price this year or will we have to wait for 2021? – Oliver Müller
Does Kevin expect it? Kevin expects that CoinMetro will continue working, continue push out products, new marketing and exciting news. So, we’ll continue to press forward. Once the world gets wind of that, then it will obviously have an effect on the XCM price.
CoinMetro has been testing a lot of marketing and will continue to do that. Once we find the sweet spot, we’ll finetune it down to its granular perfection, and when it rolls out, more people will know about CoinMetro, and get into the CoinMetro ecosystem.
[52:00] Are you happy with where CoinMetro is right now? – Brain Ortega
Kevin is always striving for something more. Looking at the trials, tribulations, what we’ve done and we’re still doing. Also, the team we have, the fact that we get better and better with what we do over time — that makes Kevin happy.
Potentially, but not necessarily. Japan is a great market, a big market, one of the most important markets in Asia. A CBDC would definitely push us in that direction, because that could bring back the “JPY carry trade”. Those were the haydays for FX trading, and CBDC could potentially bring that back.
[54:11] When merch? – Stubble & Stout
DanielP is actually helping out with the store. So you can ask DanielP about that now. But Kevin is hoping that store will launch very, very soon.
[55:41] Are there plans for software vendors (charting/trading) to integrate CoinMetro? – Harald Wille
Of course. But to become really important to those vendors, they are going to ask us about volume and traders. The more we can show them, the better it is. Once there’s some more growth, we will be able to talk more about integrations. Fireblocks has already been integrated. So, we talked to a company by the name of Copper, and we have the ability to integrate with them. Furthermore, there have also been some other integrations done on the q.t. But it’s something we’ll continue to look at.
TraM manager is onboarded. So, the TraM will be opened next week. He has a few people in his own network that may make the initial deposits into that TraM. He is working right now on getting audited versions (by PwC) of his crypto trades, which is quite unique in crypto, which we will make public so people can actually see what the guy has done over the past years.
[57:00] Promotion idea: Pay 5% interest on XCM held by new active users. – where will the 54% come from? No vaulting during this time. – KSavage79
Paying interest would potentially give XCM some features that would push it toward being a security. Obviously under the Montenegro umbrella, we could do that. But then once we paint it as a security, if the Montenegro umbrella went away, we’d still be painting it as a security.
So paying interest is probably not possible. There is probably a way to do a same thing with different wording. And we already do things like these when it comes to the rewards. Especially if you are an influencer who is trading and can bring in traders through CoinMetro’s affiliate program, the best in crypto.
[22:35] “Kevin Explains Crypto” Term: elliptic curve cryptography
Now that you are up to date with crypto market news, let’s focus on crypto education.
Starting from the end. The initial Bitcoin whitepaper cited the fact that they use elliptic curve in their own cryptography. What elliptic curve is, when you bring it down to the granular level, is the ability to make cryptographic keys that are shorter, but still contain the same security as a much longer key. So, it’s a shorter hash that gives you the same encryption power as a hash multiple times longer.
That’s a wrap for this week’s crypto market news with CoinMetro Founder Kevin Murcko! Please join us next week for more CoinMetro reports, Bitcoin news feed, Altcoin prices and Ethereum news! We’ll be live on CoinMetro’s Facebook and YouTube Channel at 12 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!