Welcome to another edition of Qume Market Mondays.
Bitcoin did well over the weekend. It had its best week since July even after the U.K Financial Conduct Authority banned retail investors from speculation on Bitcoin. The ban is likely to have little to no effect as the markets are considerably small.
Acrosss the shore, authorities in the US arrested Samuel Reed, one of the co-founders of BitMEX on the first of October on charges of violating sanctions, posing a threat to the national security of the United States. Other owners, Benjamin Dilo, Gregory Dwyer and Arthur Hayes (CEO — BitMEX), remain at large. BitMEX is accused of not taking enough steps to stop hackers from laundering their money through their platforms.
Adding to that, regulators also targeted BitMEX for keeping their KYC requirements to virtually nothing at all which made it easier for illegitimate actors to move their money in and out of the exchange.
The Justice Department of the US also said that cryptocurrencies present a threat to their national security. Lack of consistent regulations and the casino like nature of the markets undermines auditing processes as they do not comply with record keeping and reporting requirements.
Bitcoin dropped around $530 on exchanges after the news of the arrest broke out, taking the price of bitcoin to $10,450 from $10,980.
The trading volume of BTC perpetuals dropped significantly after two days of the arrest. Currently, there is high uncertainty in the markets over the continuation of the BitMEX platform.
Bitcoin rallied after a few days of low trading volumes. It is now up 8.67% from last week trading at $11,400. Currently, listed futures on BitMEX have significantly lower prices than other exchanges. It could be because investors are unsure about the future of BitMEX. Dec 20 and March 21 Futures contracts are selling at around $200-$250 discounts on BitMEX. This opens up significant arbitrage opportunities.
Bitcoin seems bullish for the week. The rally on the weekend was investors betting on an announcement of a stimulus package coming soon in the US. Looking at the strong positive correlation between US equities and bitcoin, whatever stimulates the US equities markets should pump the price of bitcoin too. US equity markets rallied for the week and closed on weekly gains.
DeFi markets are growing exceptionally well with the total value of the DeFi market now just shy of $11B. The current valuation stands at $10.93B.
Qume featured on Coindesk
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With over 2,000 user sign-ups in the last week, Qume unveiles a revamped set of services today. Among them are AlphaQ trading bots and a hashflownetwork powered DEX.
Explore the entire Qume Product Ecosystem at http://qume.io
After raising $3.5 million with a cap table that includes #DeFi legends like Robert Leshner and Calvin Liu of Compound Finance, Qume has built a kind of hybrid offering that can operate like a decentralized exchange powered by hashflownetwork.
Hashflow, is a protocol that helps platforms combine centralized order-matching and trade execution with decentralized custody and post-trade settlement.
Qume has sub-millisecond latency and institutional-grade throughput of between 100,000 and 200,000 transactions per second. On the other hand, the DEX component is there thanks to Hashflow’s second-layer protocol.
Qume last week completed the integration of Berlin-based Fractal,which matches the live selfie of the user against the photo ID they submit and as per regulations, Qume does not offer services to customers based in the U.S. or retail customers in the U.K.
Qume is also poised to make inroads to the Indian crypto market, driven by the acquisition of Indian spot exchange BitPolo back in August.