Around The Block 7/26

Crypto Recap

As we approach the end of July, cryptocurrency markets continue to trend downward with bitcoin down over 7% this week. Altcoins such as ethereum and ripple have been relatively flat, down around 4% and 3% respectively. Litecoin, however, has followed bitcoin and is down over 7% this week. Libra continues to make headlines as the senate plans to debate cryptocurrency regulations. Crypto-originated loans show strong second quarter interest propped up by last month’s bull run. We get into it all, the good and the bad, in this edition of Around the Block.

Strong Growth of Crypto Lending Continues

Genesis announced this week that they originated $750 million of loans in the second quarter, which is an increase of 75% over the previous quarter. Currently, the institutional-only lender has $450 million in outstanding loans (loans that are yet to be paid back) — an increase of 150 percent over the previous quarter. Over 60 percent of the outstanding loans are denominated in bitcoin. Demand for bitcoin denominated loans surged in June when institutions were looking to borrow and capitalize on the crypto bull market.

Visa CEO: No One Has Officially Joined Libra Yet

Alfred F. Kelley, CEO of Visa, confirmed that none of the 28 founding partners of Libra has officially joined the project, they have only signed a non-binding letter of intent. When further questioned, Kelley stated that an official partnership from Visa would be contingent upon Libra’s ability to satisfy all regulatory requirements. However, despite the negativity surrounding privacy concerns directed toward Facebook, Kelley still believes that a partnership would be beneficial for both parties.

US Senate to Debate Blockchain Regulations

The United States Senate Banking Committee has announced that it will be holding a debate on the regulatory framework concerning cryptocurrencies on July 30th. The specialists to be present will be the founder of Circle, Jeremy Allaire, and Rebecca M. Nelson a congressional researcher and specialist in international trade and finance. This debate closely follows the Libra hearing from last week, and the ongoing discussion of data and consumer protection in the digital space.

New York Times Combating Misinformation with Blockchain Technology

In an effort to stem the effects of false news and bad actors, the New York Times is launching a blockchain-based initiative known as the “The News Provenance Project”. Due to the immutability and distributed nature of blockchain, the New York Times hopes to track files and create a history of their changes. This project will be implemented in collaboration with IBM Garage, a branch of IBM dedicated to helping businesses execute blockchain-based ideas.

Chinese Crypto Platform Raises $21 million in ICO of BNB Alternative

China-based Crypto wallet and peer-to-peer lending platform “RenrenBit” has accumulated 21 million in funding through distribution of its own exchange-specific token, all within the first four hours of the sale. This issuance comes following the success of the Binance’s Binance Coin (BNB). RenrenBit’s token, directly pegged to Tether (USDT), is built on the Ethereum network and appeals to investors looking to offset exchange fees on RenrenBit, or put down collateral for crypto-backed loans.

Crypto assets have been struggling since the rally changed direction on June 26th, with most top crypto assets down more than 20% from their recent peak value. We at Blockforce Capital have put together a number of market analysis tools including cumulative returns (as shown above), volatility, and coin correlations, so be sure to check it out to track the market changes in real time.

Can’t wait ’til next week?

Feel free to reach out to us anytime. We are always here to help you learn about, and navigate, the exciting cryptocurrency landscape. If you haven’t already, check out our most recent Crypto Market Commentary, and how to pick the best Crypto Exchange based on an Exchange Ranking Formula.

In special news, we are hosting a #FinTwit happy hour in San Diego next Friday, August 2nd! Everyone is welcome, RSVP HERE.

Blockforce Capital does not recommend that the information presented herein serve as the basis of any investment decision. The information is given in summary form and does not purport to be complete. The sole purpose of this material is to inform, and in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or services, or to attract any funds or deposits.

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Blockforce Capital

Blockforce Capital

Financial innovation at the intersection of capital markets, technology, and digital assets.