Cryptocurrencies opened the week lower and continued the declines until a recovery late Wednesday. Bitcoin saw losses but managed to find support at the crucial $6,000 mark.
Market sentiment was largely led by FUD during the first half of the week and recovered later on positive news for Bitcoin. Speculation was rife that the recent downturn in the Bitcoin price was caused by sales by a “whale”, as traders with big crypto holdings are known.
The week also saw market capitalization retreat below $200 billion. Overall cryptocurrency market capitalization was $199.02 billion and the Bitcoin dominance rate was 56.2 percent as of 10.53 am ET on CoinMarketCap.
Here is a collection of the main news from the cryptocurrency and blockchain world this week.
Morgan Stanley Plans To Offer Bitcoin Swap Trading
Banking major Morgan Stanley is planning to offer trading in complex derivatives tied to Bitcoin, the largest cryptocurrency, Bloomberg reported citing a person familiar with the matter. The bank would deal in contracts that give investors synthetic exposure to Bitcoin’s performance.
SEC Temporarily Suspends Bitcoin, Ether Exchange-traded Notes
The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One and Ether Tracker One exchange-traded notes. The decision is due to the confusion among market participants regarding these instruments, the agency noted.
US Judge Rules ICOs Are Securities
A federal judge in New York has ruled that the Initial Coin Offerings or ICOs are securities and that the related scams can be booked under US securities laws. The ruling by U.S. District Judge Raymond Dearie gives more power to US Securities and Exchange Commission, which is cracking down cryptocurrencies and ICOs as part of its efforts to regulate the industry.
Crypto Companies Form Trade Bloc
A group of companies in the blockchain and cryptocurrency sectors have formed a trade bloc to lobby Federal lawmakers for reasonable regulation that helps the growth of the industry. “The Blockchain Association” identifies itself as a unified voice of the global blockchain ecosystem that has billions of dollars of invested capital.
Huobi Buys Majority Stake In Japan’s BitTrade
The Singapore-based cryptocurrency exchange Huobi has acquired a majority stake in Japanese-licensed crypto exchange BitTrade to expand its operations into the Japanese market. Huobi, the world’s third largest crypto exchange by trade volume, intends to aggressively scale this trading platform into the largest in Japan.
Winklevoss Twins’ Gemini Launches USD-backed Stablecoin
Gemini, a New York trust company owned by Internet entrepreneur twins Cameron and Tyler Winklevoss, launched a U.S dollar-backed stablecoin called “Gemini dollar,” which has the backing of the New York Department of Financial Services (NYDFS). Gemini dollar, a stable value coin, issued by Gemini is strictly pegged at 1:1 to the U.S. dollar, and is built on the Ethereum network according to the ERC20 standard for tokens.
Softbank Develops Blockchain Tech For P2P Mobile Payments
Japan’s telecom carrier SoftBank Corp. announced that a blockchain proof-of-concept (PoC) that allows a new cross-carrier mobile payments service has been developed. The technology was developed in partnership with Synchronoss Technologies Inc. (NASDAQ: SNCR) and blockchain technology developer TBCASoft Inc. based on the Rich Communication Services (RCS) global messaging standard and TBCASoft’s cross-carrier blockchain platform.
IMF Warns Marshall Islands Against Risks Of National Cryptocurrency
The International Monetary Fund (IMF) urged the Marshall Islands to “seriously reconsider” the issuance of its proposed cryptocurrency – Sovereign – as legal tender. The issuance of a decentralized digital currency as a second legal tender in addition to the U.S. dollar would increase macroeconomic and financial integrity risks, and escalate the risk of losing the last U.S. dollar correspondent banking relationship, the lender said in a report.
IBM Joins Yellow Pages Of Blockchain As Founding Member
IBM has joined blockchain startup HACERA’s yellow pages of blockchain as a founder member, to provide visibility of registered blockchain solution networks around the world. The project called “Unbounded Registry” is built on the Linux Foundation’s Hyperledger Fabric and provides a decentralized means to register, look up, join and transact across a variety of blockchain solutions, built to interoperate with all distributed ledger technologies (DLTs).
As of 10.54 am ET, Bitcoin was up 0.23 percent for the week at $6,444.16, while Ethereum was lower by 6.18 percent at $204.45 percent on Coinbase.
by Jyotsna V