Crypto News Weekly 12.10.18: Crypto Market Finally Dying and About to Implode
Crypto market finally dying and about to implode
Well, the tulip bubble could only last so long, until there were no more fools rushing in, and as the stock market took a dramatic decline this week, soon behind it, the Bitcoin and the crypto market had a sharp alteration that set off all the alarm bells for the analysts. Among the major red flags this week, were more drama from Bitfinex and Tether. Rumors have been flying around of liquidity problems with Bitfinex, and the fact it may not even have banking facilities at present, hopes they are striking a deal with HSBC and then the news they have suspended all wire deposits in hard currency for maybe up to a week, while still denying any liquidity problems. Add to that a massive exit of $100 million in Tether tokens from the exchange to unknown addresses. Now that is never going to spook the market, is it?
On hand to drive the nails in the crypto coffin, the analyst known as Doctor Doom, Nouriel Roubini was attending a US Senate hearing about crypto. Roubini, who this week described Vitalik Buterin (founder of Ethereum) as a dictator-for-life, and compared the control of mining concerns over the market as worse than North Korea. Then there was a report from Juniper Research this week that declared that after 11 months of decline, the crypto market was an industry on the brink of implosion. And another independent report from Autonomous Research that showed ICO fundraising has dropped 90% this year.
Gripping stuff! Time for all you people who list yourselves as Blockchain enthusiasts on LinkedIn to get a real job! The gig is up, jog on!
New crypto hedge funds gather millions to invest
In the last month, multi-million crypto funds have made their debut with strong Wall Street and institutional money backing them.
Reality Shares with Travis Kling for $100 million, DragonFly Capital, also $100 million, and crypto hedge fund BlockTower, have been expanding their operations with extra capital and lots of new staff hires.
Even though we are deep in a bear market, there does seem to be a major shift for the better ICOs and startups to reject the standard ICO route and go seeking fund money to make faster progress without risk of falling foul of the regulators. Add to that the anticipation of very strong growth in the Security Token market, and there appears to be a long queue of institutional money that will keep entering the sector, maybe not through the front door of buying Bitcoin but in one form or another.
Binance delists Four coins while Yobit announces pumps
Binance has been busy in the last week putting internal systems into good order. First, there was the announcement from the CEO, Changpeng Zhao that there would no longer be a formal listing fee, and it would be reclassified as a charitable donation to the Blockchain Charity Foundation, and would be left to the discretion of applicants. Previously the exchange had been accused of extorting secretive high charges, which it denied.
Then the exchange delisted four coins for not meeting the exchange’s ongoing quality criteria, the coins being Bytecoin (BCN), ChatCoin (CHAT), Iconomi (ICN), and Triggers (TRIG). All the coins took a severe dip in price upon the news.
In an alternative management style, crypto exchange Yobit surprised the crypto community with a new marketing campaign announcing they would be pumping random small altcoins. At first, it was so unusual, most sources suspected the email account had been hacked, but the unusual actions were also announced on the website. The first coin to get the treatment was Putin Coin, how very apt.
Spanked Hacker leads to frozen Booty!
The management team at SpankChain were left red-faced in front of customers having to announce that their smart contracts had been hacked for $38,000 of ethereum and that $4,000 of their own native crypto tokens called Booty had been immobilized.
The candid cryptocurrency that allows private clients to stay private while paying for private peer-to-peer webcam services also at present had its streaming service offline claiming, a case of streaming interruptus!