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The future of crypto investing
09.02.2019
February 8th – Weekly Crypto Digest
ANDREW LEE
@alee

Grin lead developer who goes by the pseudonym of Ignotus Peverell writes that he’s disappointed by industry greed and “the way the industry around Grin is shaping up.” Grin core developer Michael Cordner’s campaign to raise funds to allow him to work full-time on Grin was only able to raise 10% of its funding goal (€4,660 out of €55,000). – Link

CEO of Canadian exchange QuadrigaCX dies on December 9 while traveling in India, freezing access to approximately $137M in customers’ crypto assets (26.5k bitcoin, 11k bitcoin cash, 11k bitcoin cash SV, 35k bitcoin gold, 200k litecoin, 430k eth). Approximated 115k customers affected. The CEO filed a will 12 days before his death. – Link

Charlie Lee confirms talks with Beam to implement MimbleWimble on Litecoin. – Link

First hacker convicted of sim swapping, 20-year-old college student Joel Ortiz of Boston, gets 10 years in prison for stealing more than $5M. – Link

ChromaWay CEO Henrik Hjelte addresses the infrastructure challenges to creating dapps today: “Dapps offer a radically different data ownership model. The dapp user controls data access (through cryptographic signing), not the dapp developer.This presents certain challenges and advantages for all parties. Developers have the complication of having to architect applications that utilize data validated by nodes operated by independent service providers.” – Link

Music producer will.i.am says internet users should own their data and be compensated for it, and calls Facebook and Google “data monarchs”  that collect, store, mine and sell data without customers knowing. – Link

Bitcoin enters longest bear market in its 10 year history, lasting 417 days without a turnaround. – Link
• January 2011- July 2012, 185 days, $7.08 peak to to $4.22 low (-40%)
• August 2012 – December 2012 – 111 days, $13.35 peak to $8.40 low (-37%)
• November 2013 – January 2015 – 415 days, $1,149.14 peak to $197.24 low (-83%)
• December 2017 – 417 days and counting – $19,764 peak on December 17 2017

Wired publishes a skeptical opinion piece against blockchain, titled “There’s No Good Reason To Trust Blockchain”; the author favors laws, reputation and regulations over math and code. “Trusting technology is harder than trusting people,” the author writes. – Link

Child porn images were uploaded to the Bitcoin SV blockchain after miners agreed to increase limits on transactions to 100KB. – Link

Vitalik criticizes projects falsely marketing high transaction volume: “the purpose of a consensus algorithm is not to make a blockchain fast. The purpose of a consensus algorithm is to keep a blockchain safe.” Vitalik also pokes fun at other projects by saying, “we are a centralized pile of trash because we only have 7 nodes running the entire thing.” – Link

SF-based Dharma Labs raises $7M from Coinbase, Green Visor, Polychain, Passport, Blockchain and Ripple’s Xpring to offer margin loans, governed by smart contracts, for crypto traders and holders. Darma aims to offer better loan rates over exchanges. – Link

ConsenSys Protocol Engineering lead Daniel Heyman says the last crypto bubble “came early because blockchain technology enabled liquidity earlier in its life cycle. The financial assets became liquid before the underlying technology matured.” – Link

Technical director at ChromaWay August Botsford blogs about how relational blockchain databases could solve the problem for creating complex, on-chain applications. “Either there is no demand and the promise of dapps has been vastly overstated and buoyed by a crypto bubble, or the existing platforms have not yet unlocked the potential that exists,” Botsford says. Chromapolis expects its dapp sidechains to reach at least 10k “cell updates” per sec, which is similar to a TX. – Link

CBOE refiles ETF proposal to SEC after withdrawing application on Jan 22 due to ongoing US government shutdown. The re-submission gives the SEC a maximum of 240 days to approve or disapprove the ETF, which means before October this year. – Link

Mobile crypto wallet and exchange service Abra plans to let users by stocks and ETFs using bitcoin. – Link

IDEO, a global design and consulting firm based in Palo Alto, announces IDEO CoLab’s Distributed Web Investing Program headed by Ian Lee which plans to invest and co-create startups focusing on distributed web technology. – Link

Hunter Hillman (Head of Growth at Connext), Steven McKie (Co-Founder of Amentum) and Eric Olszewski (Co-Founder of Committed) publish “Don’t Believe the FUD: Ethereum Can Scale”, focusing on the possibilities of Layer 2 scaling and financial use cases. – Link

Kraken acquires Crypto Facilities, a British trading firm that specializes in derivatives, for $100M. – Link

Parity announces a fix to its ethereum node implementation that allowed nodes to crash when attacked by a bad actor. – Link

Zeppelin, which provides framework and infrastructure to develop applications on top of blockchains, reaches 400k total downloads (for OpenZeppelin) in 2018 w/ ~3k downloads per day. – Link

Google adds support for 6 new public blockchains on its big-data analytics platform called BigQuery, which help users search for specific data. The newly supported publich blockchains include Bitcoin Cash, Dash, Dogecoin, Ethereum Classic, Litecoin, and Zcash. – Link

Shares in crypto OTC business Circle fall in value on SharesPost, platform for trading private company shares, to $3.80 implying a valuation of $705M, down from $16.23 a share and $3.01B valuation last May. – Link

Two hacker groups are responsible for 60% of all publicly reported crypto exchange hacks and have stolen approximately $1B, according to Chainalysis. The hacker groups may move funds up to 5k times before withdrawing into fiat. – Link

Jack Dorsey starts tweeting about crypto, and says he owns “enough” bitcoin, bitcoin is “native to internet ideals”, he only holds bitcoin and he rejects Bitcoin Cash and Tron. Jack also passed the “Lightning Network” torch, which involves passing along a small payment and adding 10k sats each time (worth ~$0.34) on lightning network. – Link

Ethereum releases phase zero of Ethereum 2.0 upgrade, also known as Serenity. – Link

Former Starbucks CEO and possible independent 2020 president candidate Howard Schultz says Starbucks is a unique position to adopt blockchain tech, but denies any concrete plans. – Link

Crypto publication The Block estimates Binance achieved $446M in profits in 2018. Binance CEO CZ responds on Twitter, “well researched.” – Link

Bettergram, a popular telegram client service, and Live Coin Watch founder Max Bloom reportedly dies in Manila. – Link

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