“This Week in Crypto” Summary for January 17, 2020

Summary of crypto market news, CoinMetro updates & more!

Check out our weekly “This Week in Crypto” summary or watch the full video.

 

Crypto Market News Highlights

1) Bitfinex Market Manipulation Lawsuit Refiled in New York and Joined by Second Case

This market manipulation lawsuit has nothing directly to do with the New York State Attorney General’s own investigation into Bitfinex/Tether. This a private, and probably a civil, suit. And now there’s more than one.

All it points to is the fact that the problems are piling up for Bitfinex and indirectly for Tether/Noble Bank, among with a few other companies.

2) Japanese Government to Limit Bitcoin Margin Trading Leverage to Just 2x

This was expected, but maybe not as low as 2x. In Japan, the leverage is limited to 25x in FX. Previous to that, brokerages in Japan and those soliciting clients outside of Japan into Japan, sometimes offered leverage up to 1000x.

Limiting leverage does not have the power that most of these legislators think it does. It limits you from going into larger negative balances, but in black swan events it really doesn’t. In normal trading, it limits it to an extent. However, someone who overleverages themselves at any amount of leverage, can very easily go negative.

The Japanese government is one of the most stringent, and one of the first to actually have legitimate licensing in the country — so this makes sense. The 2x for Bitcoin leverage will likely grow with time.

CoinMetro’s Margin Trading platform offers trading with 3x leverage.

3) Binance Eyes Japanese Market with Yahoo Japan, TaoTao Partnership

It amazes Kevin that a lot of companies are still willing to partner with Binance. Whether they don’t see a risk there, or they think that Binance is “too big to fail”, or they simply think that Binance was one of the first movers and the risk with them is low — Kevin would say that the risk is quite high.

However, this is just an announcement. There has not been an official word from Yahoo Japan/TaoTao that they accepted the partnership. Maybe they are just providing advertising services. The partnership hasn’t really come to fruition yet, and we don’t know the extent of the possible partnership. So we will have to see how it pans out.

This is surprising to Kevin, and he does not see Binance’s risk lessening over time. Others might see it that way.

4) US Judge Gives Craig Wright Until Feb. 3 to Access 1.1M Bitcoin at Heart of Ongoing Lawsuit

That’s not going to happen. Anyone with a brain should know that Craig Wright is not Satoshi. 

Craig probably knew who Satoshi is, or was, Hal Finney for example. Or at least he knows that the real Satoshi is not going to reveal himself.

Bitcoin is probably the most widely used and decentralized crypto that exists, and having a creator, does limit the decentralization to a certain extent. There’s a weak point, a point of power. That’s why the real Satoshi — if he/she/they are alive — will stay hidden.

Craig Wright is a clown, and he does not have access to 1.1 million Bitcoin. February 3rd will come and go. Whether it gets an extension, we’ll have to see.

Curious to learn more about Bitcoin? Read CoinMetro’s comprehensive guide to Bitcoin!

5) Bitcoin SV pump labeled as wash trading as BSV dump accelerates

Yes. Wash trading, front running. Your run of the mill market manipulation. Kevin saw statistics where liquidity in the BSV book was under a US dollar, and something like 30-40 millions worth of trades happening.

BSV was dumped off of most exchanges, and is only traded at a bunch of shady “we just create our own data”-exchanges.

This was obvious manipulation. Kevin believes that they’re trying to get as much money as they can out of BSV before the February 3rd date comes, as it’s going to be obvious even to their diehard supporters that Craig Wright is lying. Or he gets kicked a bit more and they’re given a bit more time to dump on everybody.

Would you like to read about more market news? Check out our Medium post!

 

Updates

New license

With the backing of our investors, CoinMetro is now in the process of applying for a Payment Institution License in Estonia. The application should be ready by mid-March, and we expect to have the license by September.

The license will allow CoinMetro’s debit cards to get rolling, and allows several other payment-related features. 

CoinMetro App

We had a big update to our SmartApp. The next update is probably coming in February, and will offer signup/deposit/withdrawal features built into the app.

Try the new CoinMetro app – available for both Android and iOS!

Biz Dev

Quant Network recently published an article, featuring CoinMetro as their exchange of choice for the EU, specifically tailored for their retail and developer community. They are now also joining forces with us and are going to provide our upcoming market maker with some liquidity. 

It’s the first real community of any of our listings that actually opened up and let us help them, while they help us.

QNT/EUR pair is available at CoinMetro!

Market maker and improvements to spread

The Market maker should be live next Wednesday. They have been testing so far and it has been going well. Liquidity has been improved across the major pairs. With our new method, our spread is now now competitive, if not already beating other exchanges, like Coinbase.

See for yourself on CoinMetro’s Express platform!

Marketing and Ambassador

The new new marketing hires are expected on the staff and in the office in the next 60 days. That’s why we are starting minor marketing this weekend, so we can start testing marketing strategies.

We also have some cool features built into our admin backend that will allow us to create promos on the fly. Big perks are also coming for our Ambassadors.

Become a CoinMetro Ambassador today, and increase your XCM holdings while helping CoinMetro grow!

Public roadmap and expansion of the development team

A lot of progress behind the scenes. It has been a great couple of weeks. We are creating our next iteration of the roadmap, which will be released to the public.

We are looking to hire more developers, and the team behind the CSD might come onboard at CoinMetro and help us increase the team, taking some pressure of our CTO Salvatore. 

Currencies and faster payments for UK clients

In the beginning of February, CoinMetro will have access to GBP Faster Payments

We will also have access to SWIFT payments for multiple currencies via LHV. We still need to dig into the details about this, as we just had this confirmed to us the past week.

 

Live Questions

Is CoinMetro going to be the primary EU exchange for Ignium?

Kevin is a majority shareholder of both companies – so we can’t show favoritism. Initially, when we are in the sandbox, we will be the only game in town. 

If we have the MTF license as we come out of the sandbox, we might be one of the only MTF operators. Right now we don’t have the capital to move forward with that license, but Kevin believes that will be a possibility once we have some more sandbox progress to show.

So sometime mid-late sandbox, we might be able to drum up that capital to move on the MTF license, which should hopefully coincide with the Payment Institution License.

Are you thinking about doing some intro videos with the current CoinMetro team?

We can definitely do that. If marketing thinks that it’s something they want to do, then Kevin is happy to do so.

Could you elaborate on the 1-50% XCM lockup?

At the time of the formula’s inception, the idea was to take the average daily income versus the current income of the day, based on estimating the veracity of the transactions, the end result of the day before. If a certain threshold is reached, or if it was bigger than the day before, a larger percentage would be burned, and over or above a high water mark principle would result in the max percentage being burned.

The formula would have changed a bit since then. 

Read more about What’s in Store for XCM!

Are you in talks with new TraM managers?

Yes. Kevin has one or two individuals in mind who would be suitable as TraM managers. Oliver is also reaching out to potential managers.

Early next week, Oliver will be running the currently on boarded managers through the system, and they will then start to test. We are planning on building a biz dev role for things like TraM manager listings.

Read more about CoinMetro’s unique TraM system!

When do you feel the new main marketing drive will occur?

End of March.

Have you tested any marketing copy yet?

Yes we have been testing some marketing copy, but more will be happening over the weekend.

Any hope of commodity trading?

Yes, the MTF license would allow us to bring in any type of asset. Kevin has connections to liquidity providers that provide thousands of assets that we would be able to list. It will happen, but  we need additional licensing first.

What about stablecoins integration?

We will be creating our own stablecoin in Ignium, so we may integrate that in CoinMetro. CementDAO is still the stablecoin we intended to list, and we haven’t really looked into other stablecoins as CementDAO covers what we need.

Curious to learn more about stablecoins?

Have you talked with Chainlink?

Talks with Chainlink should be picked up when Kevin is back from Mexico. Mainly for the CSD initially, and once the relationship is in place, we will try to include CoinMetro there.

LINK/EUR is available for trading at CoinMetro!

 

Kevin Explains Crypto” Term: SPV mode

SPV mode relates to Bitcoin core. It’s basically a method of verifying transactions by only using the header of a block.

Normally, the entire block needs to be downloaded to verify it. Initially, when opening your own software wallet, you have to download the entire history of the blockchain, which is resource intensive.

SPV mode allows you to verify transactions by looking only at the headers, instead of the entire block. The header contains the information about where the transactions came from and where it is going. This makes it much quicker, and allows for quicker payment verifications.

The only time that you actually need to get the full information is when you’re actually processing a transaction. In the initial synching process, you don’t need it.

Interested in learning more? Have a look at the video where Kevin explains “SPV mode”: 

 

Listen to Last Week’s TWiC on the Go

Get the complete scoop by tuning in to our audio version of last week’s TWiC on SoundCloud. Happy listening!

__________________________________________________________________________

That’s a wrap for this week’s AMA with CoinMetro Founder Kevin Murcko! Please join us next week on CoinMetro’s Facebook and YouTube Channel at 1 PM (UTC) for another round and make sure you submit your questions to the CoinMetro subReddit! As always, we’re available to answer any questions you may have on our Telegram Group 24/7.

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