Welcome to this week’s Crypto market update on The Daily Chain. We are collaborating with NKB Group – a full-service investment bank focused on blockchain technology. These updates will include the top news stories of the week, charts, data and more.
Following the Bitfinex news, digital assets recorded a negative week where the total market cap lost around 7.5%, falling from $185bn to almost $172bn as of this morning. Bitcoin was halted on its way to break resistance at $5,650 and quickly fell below $ 5k, losing 18%. BTC currently sits at $5,200 with increasing market dominance (+4%). Ethereum, Ripple, Bitcoin Cash and other major digital assets’ losses range from 5% to 12%, with the exception of IOTA as the best performing large asset of the week, which surged 20% as Jaguar Land Rover announced their new partnership.
Top News Stories of the Week
The New York Attorney General’s office has alleged that crypto exchange Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator Tether to secretly cover the shortfall. According to the statement, Bitfinex sent $850 million of customer and corporate funds to Crypto Capital Corp., a payment processor that is said to be holding funds from other exchanges as well, such as QuadrigaCX. Funds from Tether’s reserve were used to make up the shortfall, but neither the loss nor Tether’s fund movements were disclosed to customers.
About 17,250 BTC (~$89 million) was withdrawn from Bitfinex’s bitcoin cold wallet and about 633,300 ETH (~$96 million), according to TokenAnalyst. In total, about 20% of Bitfinex’s holdings of ETH and BTC was withdrawn.
Ethereum funder Vitalik Buterin recently posted on Github that Ethereum will use a higher staking reward metric after the deployment of Proof of Stake. Buterin’s proposal charts out the estimated annual returns for different amounts of validating Ether.
The largest US crypto exchange Coinbase brought in around $520m revenue in 2018. According to a document reviewed by Bloomberg in October, Coinbase had projected $1.3 billion of revenue for 2018, which means they generated 60% less than they originally projected. In 2017, Coinbase generated $923 million in revenue meaning that the revenue in 2018 was down nearly 44% year-over-year.
Shortly after posting their financial results, Coinbase announced the cance llation of its efforts to build a new matching engine, laying off nearly 30 engineers in its year-old Chicago office.
Nasdaq Quietly Tests Bitcoin Trading
The world’s second-largest stock exchange, Nasdaq, is allegedly testing trading of a bitcoin-based product, according to a tweet by an analyst at quantitative trading analytics service StrongMarket, who claims that he bought one bitcoin through an account on retail brokerage firm TD Ameritrade.
American venture capital giant Andreessen Horowitz looks set to give mass adoption of cryptocurrency a further boost by investing an enormous $1bn into blockchain technology. The company has said it will be turning its investment focus directly onto digital assets and the blockchain programming that underpins them via their crypto fund a16z.
Genesis Loaned More Than $1.5 Billion in Crypto to Institutional Borrowers Cryptocurrency dealer Genesis Global Trading said on Thursday it loaned digital assets valued at $1.53 billion (£1.19 billion) to institutional borrowers in the year since it launched its lending business in March 2018, an indication of demand for the emerging lending market for cryptocurrencies.
On April 19th Nike filed a trademark for the word mark “CRYPTOKICKS” with the US Patent and Trademark Office (USPTO) for use in a wide array of cryptocurrency-related goods and services. In the filing, the company asserts the mark may be used for goods and services, including—cryptocurrency software and hardware wallets, crypto-collectibles and art, utility tokens, and software for managing networked IoT devices, but also alludes to a mobile app Nike is developing with an associated coin.
US-based crypto exchange ErisX is about to launch spot trading of cryptocurrencies. ErisX has been in test mode with some of the financial firms which may also become users. TD Ameritrade with 11m active users, high-frequency trader Virtu and investing company DRW Holdings are among the investors.
Samsung is reportedly developing an Ethereum-based blockchain network and is eyeing the eventual issuance of a Samsung Coin token.
Blockchain payments start-up Ripple has reported a 31% increase in sales of XRP in Q1. The firm sold a total of $169.42 million in XRP in Q1, compared with $129.03 million in the previous quarter.
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