Bitcoin eventful

It’s been an eventful two weeks to say the least

It’s been an eventful two weeks to say the least; I’ll address these in chronological order:

  1. Kucoin hacked but damage manageable
  2. SEC drops the hammer on BitMEX and it’s top mgmt
  3. Trump gets COVID, flip-flops on stimulus discussions
  4. Square makes a fat purchase of ~4.7k BTC

Seeing how Kucoin and stakeholders handled the hack, we can definitely say the industry has come a long way; 1) good exchanges now have insurance funds, 2) on-chain analytics are making coins easier to track, 3) not only exchanges but stablecoin issuers are playing a part to stop crime. The counterparty risk for top names has to be at an all-time low.

Regulatory risk, on the other hand, is still a big question mark. What we tend to forget is a lot of the crypto infrastructure is thriving only because the US govt allows it to do so. I imagine BitMEX is just first on a long list of potential targets, and it’s not that hard to twist interpretations of existing law to make a case (disclaimer: IANAL). Some are saying DeFi is next, which is possible but I think there are lower hanging fruit; e.g. USDT mkt cap @ >$15b.

How can the SEC go after DeFi? Easy; Uniswap is #1 in TVL. It’s also a centralized entity backed by VCs. For sure, bad actors could’ve used it as a washing machine. Even with forks created by anonymous founders, a move like this would most certainly reverse or at least suppress further innovation.

To be clear, I’m saying the above is a possibility (with low probability).

BTC rallies nicely on the back of Square allocating a small % of treasury into BTC. Worth noting the company’s Cash App supports BTC txs so this news is not nearly as +ve as Microstrategy’s recent investments. Think macro uncertainty will continue to weigh on BTC prices in the short term. BTW, someone tell me why US equities are up with Biden now leading the race.

In Other News:

  • UK FCA bans crypto derivatives for retail
  • US DoJ releases enforcement framework on crypto
  • High interest to short yield plays (e.g. YFI)
 
Thanks for reading It’s been an eventful two weeks to say the least written by Charles Yang Head Trader at Genesis Block. If you found this information useful, don’t forget to subscribe to our newsletter and checkout some of our other content below:
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Peter Thiel and Alan Howard

创投名人 Peter Thiel、Alan Howard 参与 BitDAO 2.3亿美元集资

去中心化代币平台 BitDAO,最近成功集资2.3亿美元,云集多名传奇科技投资者与风险创投机构。该轮2.3亿美元的私人代币配售集资,由 PayPal 联合创办人 Peter Thiel、旗下 Founders Fund、Pantera Capital、以及 Dragonfly Capital 牵头进行;他们在 BitDAO 开发初期都已经投资该项目。

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