August 2018 Week 1: 30 Positive and 8 Negative Developments in Blockchain Industry | KoinOK Blog

Even though we are in the bear market currently, you would be amazed to find out that there’s a lot going on in the blockchain industry. And this is infact happening at such a rapid pace that it’s becoming difficult for any blockchain enthusiast to take out time to keep track of all important events.

That is why we bring you the summary of all important developments in the blockchain ecosystem which took place in the first week of August 2018:

NOTE:

1. Both positive and negative developments have been covered to ensure that you get a fair view of the ecosystem

2. TL;DR — You can just go through the headlines

3. News Sources include Bloomberg, Fortune, Yahoo Finance, CCN.com, Coindesk, Cointelegraph

Positive Developments -

1. NYSE (world’s biggest stock exchange) Operator announces New Global Digital Assets Platform, Plans Bitcoin Futures Launch

• ICE (operator of NYSE) is forming a new company, dubbed “Bakkt” (to be launched in Nov 2018) and will work alongside a marquee group of enterprises that includes BCG, Microsoft, Starbucks, and others, to create the new ecosystem.
• The intention is to create an integrated platform that enables consumers, merchants, and institutional clients to buy, sell, store, and spend digital assets on a “seamless global network”.

2. Bitcoin Could be ‘First Worldwide Currency’: NYSE Owner

• ICE founder, Chairman, and CEO Jeffrey Sprecher explained that he believes that — bolstered by Bakkt’s infrastructure — bitcoin could become the currency of choice for global payments. ”Bitcoin would greatly simplify the movement of global money,” said Sprecher.

3. Korea’s Financial Watchdog Calls for Stock Trading on a Blockchain

• Saying that blockchain technology offers the promise of safer and tamper-proof transactions, the watchdog called on the country’s regulatory agencies and firms to jointly work and develop an integrated blockchain system that negates the use of a conventional centralized ledger and system to track transaction.

4. Dubai Looks to Disrupt its Entire Legal System with ‘Court of the Blockchain’

• The Dubai court system tasked to oversee all civil and commercial disputes involving financial transactions both domestically and internationally is turning to blockchain technology to “create the world’s first disruptive court”. The pivot to a “blockchain-powered future” will bring “greater efficiencies across the entire legal ecosystem,” the authority said.

5. Former US President Bill Clinton Set to Keynote Ripple Conference

• This Ripple Conference, held on an yearly basis, invites global leaders from the policy, payments, and technology fields to come together and discuss how blockchain can be used to benefit society at large.

6. Barclays and Citi Among the Banks Trialing IBM’s ‘Blockchain App Marketplace’

• In theory, the appstore called LedgerConnect, will make it easier for banks to opt in to blockchain projects using the platform, and encourage banks to use the same blockchain protocol rather than say several incompatible ones.

7. Thomson Reuters Adds 50 Cryptocurrency Prices to Institutional Data Feed

• This is yet another sign of the mainstreaming of cryptocurrencies.“Despite the decline in the price of many of the leading cryptocurrencies during 2018, we continue to see increasing demand from our customers for pricing coverage of the major names”, said Reuters Director of Strategy and Innovation.

8. Morgan Stanley Poaches Credit Suisse ‘Bitcoin Expert’ to Head Crypto Division

• This hiring could be a sign that the firm is stealthily investigating whether and how it should expand its exposure to the burgeoning cryptocurrency space, which continues to see increasing interest from institutional buyers.
• Some of Morgan Stanley’s competitors, including Goldman Sachs, have said that they will launch bitcoin trading desks, and even crypto-skeptical asset managers like BlackRock have conceded that they cannot ignore the asset class.

9. Japan’s SBI Group Invests $9 Million in Institutional-Grade Cryptocurrency Derivatives Platform

• In funding Clear Markets, SBI aims to build a derivatives exchange that allows institutional investors to trade investment products tied to the price movements of bitcoin and other cryptoassets.
• Such products — which may include futures, options, and swaps — allow institutions to hedge other positions that they may have in the cryptocurrency market, reducing risk and enabling them to lock in profits or mitigate losses.
• Along with lack of access to regulated custodians, the dearth of cryptocurrency derivatives products is often cited by institutional investors as a reason that they have not felt comfortable allocating capital into this burgeoning industry.

10. KPMG: Blockchain Funding in US This Year Has Already Surpassed 2017’s Total

• KPMG report said — “Blockchain’s capabilities extend from recordkeeping and the registration of transactions to documentation management and supply chain management. While it has primarily been looked at from a banking and insurance point of view to date, the reality is blockchain opportunities abound and could enhance processes for any number of US and global businesses.”

11. Australia’s Queensland State Government Grants invests $100k in a Crypto Travel Experience Startup to Boost Tourism

• The company, TravelbyBit, designs “tourist routes” on which travelers can spend crypto, and also provides a crypto payments platform for merchants. Tourism is one of Queensland’s most important industries.

12. Walmart Files Blockchain Patent for Smart Appliance Management

• The patent discusses the use of a blockchain server network to support an IoT (internet of things) ecosystem. It also mentions the possibility that the technology could be used to create a smart home system.

13. Coinbase Brings Crypto Payment Option to Millions of Online Merchants

• Coinbase Commerce announced a WooCommerce plugin to give millions of merchants the option to accept cryptocurrencies, the ability to send bitcoin and litecoin directly, and other new capabilities. It believes that improved access will support adoption of cryptocurrency and a more open financial system.
• The WooCommerce plugin, a WordPress e-commerce platform, currently supports more than 28% of all online stores, all of which now have the ability to accept cryptocurrency from customers worldwide.

14. Square Seeing ‘Real Growth’ in Bitcoin User Base: CFO

• “Crypto is just one of many pieces of utility that people want. It’s not the be all and end all that I think we hear a lot on financial news. Rather it’s just like any other form of investing. People want to have access and that’s what Square’s purpose is,” Square CFO said.

15. Upwork: Blockchain the Fastest Growing Skill in US Fareelance Job Market

• The feat was a repeat of the first quarter of 2018 when blockchain emerged as the fastest growing skill in the world’s largest economy for the first time. Since last year blockchain-related skills have enjoyed quadruple-digit growth.

16. Major German Stock Exchange Announces “End-to-End” Cryptocurrency Infrastructure

• “Boerse Stuttgart Group is creating an end-to-end infrastructure for digital assets. After the start of cryptocurrency trading via BISON, there will soon be a platform for initial coin offerings (ICOs), a multilateral trading venue for cryptocurrencies as well as solutions for safe custody. Boerse Stuttgart Group thus continues to pursue its digitisation strategy and is becoming a pioneer for the digital transformation of financial markets and financial products,” stated a recent announcement by the company.

17. NFL Players Association Invests in Blockchain Startup ‘SportsCastr’

• In June, SportsCastr announced FanChain, a cryptocurrency developed for the multi-billion-dollar global sports market. FanChain allows SportsCastr users to earn tokens for participating on the platform, and those tokens can then be used to unlock premium NFL player content (such as back-stage access), purchase sports tickets or merchandise, and send virtual gifts to NFL players.

18. Goldman Sachs Is Reportedly Weighing a Crypto Custody Service for Cryptocurrency Funds and Institutional Investors

• Having launched bitcoin futures trading in May, Goldman Sachs is now pondering the launch of a cryptocurrency custody service. So far, though, it seems the possibility is still being discussed and a launch date is not certain.

19. Blockchain Adoption to Save Banks $27 Billion Annually by 2030: Juniper Research

• Major savings will be obtained on cross-border settlement transactions. Other areas where banks are likely to realize cost reductions include treasury operations and compliance.

20. House Judiciary Chair Bob Goodlatte Owns as Much as $80,000 in Bitcoin: Report

• According to a June 18 memo issued by the House Ethics Committee, lawmakers were required to reveal any digital token holdings above $1,000 publicly. The new rule will reveal members of Congress who have been drawn into the crypto investment craze which is still distrusted by some banks and institutional investors in the U.S.

21. There Are Now More Than 3,500 Bitcoin ATMs Worldwide

• The slump in bitcoin prices hasn’t had much impact in the rate at which crypto ATMs are being installed and used across the world. Cryptocurrency ATMs remain a popular medium for buying and selling cryptocurrency such as bitcoin.
• North America has the largest concentration of ATMs globally, with a whopping 2,594 bitcoin ATMs installed.

22. Uber’s Biggest Shareholder Backs $15 Billion Bitcoin Giant Bitmain: Report

• Crypto mining hardware manufacturer Bitmain has reportedly secured China’s biggest technology company Tencent and Japan’s Softbank, Uber’s biggest shareholder, as investors in a pre-IPO financing round.
• The participation of the two investors, in particular, underlines the growing mainstream appeal of the sector and the relevance of the industry’s biggest firm.

23. Ukraine Election Official Launches Voting Trial Using NEM’s Blockchain

• “One of the basic useful properties of the blockchain is the impossibility of making changes to the saved information …These are the properties we tried to use to save the information of the local ballot sessions,” Ukraine Official said.

24. New Blockchain App Claims Its Already Tracking 760,000 Diamonds

• Built on top of ZhongAn company’s proprietary blockchain network, and hosted on its Anlink cloud platform, the application is deployed across selected parties along the diamond supply chain, including diamond dealers, processing firms, customs, logistic companies and exchange centers.

25. Ohio Becomes Latest US State to Legally Recognize Blockchain Data

• The news comes after lawmakers from the state introduced a bill in May that sought to treat blockchain data and smart contracts as electronic records in a bid to provide safe harbor for the emerging technology.

26. West Virginia Offers Overseas Residents Blockchain Voting Option for Midterm Elections

• U.S. troops serving overseas will be able to use a smartphone app based on blockchain technology for casting federal election ballots in West Virginia this November.

27. Biotech Giant Macrogen plans to securely share Genetic Data on a Blockchain

• Macrogen, a DNA sequencing service provider based in South Korea, is turning to blockchain to allow it to share genetic data without risk of hacking or infringement of patients’ privacy.
• “Despite the fact that genomic data is widely used, it has not been easy to share it because of the problem of personal information protection. With the blockchain platform we seek to build this time, we expect to create an ecosystem that can freely distribute genetic data,” CEO of Macrogen said.

28. Sony Patent Filings Hint at Work on Crypto Mining Hardware

• Sony’s filings revealed for the first time that the company is working on blockchain-related hardware concepts.

29. Zambia, Overstock’s Medici Ink Deal on Blockchain Land Registry Pilot

• Under the agreement, MLG (Medici Land Governance) will provide Zambia a “land governance program that collects and secures property ownership information using blockchain.”
• MLG has agreed to deliver certificates of title in digital and printed form to the nation’s government by November 30, 2018 to serve as a proof of concept for a streamlined process.

30. Northern Trust Is Helping Hedge Funds Invest in Cryptocurrencies

• US based custody bank Northern Trust’s president, Pete Cherecwich, told the news organization that the financial services firm is working with three hedge funds to add cryptocurrency investments to their portfolios.

Negative Developments:

1. Korean Shipwreck ICO Under Investigation for Possible Fraud

• A South Korean treasure-hunting company called Shinil Group recently made headlines across the world once they announced an ICO after making the big discovery of a sunken Russiani battleship carrying gold worth $130 billion.
• Shinil Group said through a statement how they were the “only entity in the world” who have actually found the historical ship.
• Speculation is now rife that the entire thing might be an elaborate scam.

2. SIM Hijackers Steal Over $5 Million in Bitcoin in First Reported Crime of its Kind

• The hacking was done using a technique referred to as SIM swapping or hijacking. With SIM hijacking, mobile operators are tricked into transferring the phone number of a target to a SIM card that’s under the control of the criminal. Upon obtaining the number the criminals can then reset passwords before accessing online accounts of their victim.
• With the help of telecommunications giant AT&T, the investigators were able to obtain the International Mobile Equipment Identity (IMEI) numbers of the phones the SIM hijacker had been using. Subsequently, the detectives were then able to access email accounts linked to the smartphones from where they got evidence of potential criminal activity.

3. GDPR Could Hinder Blockchain Innovation, Warns EU Body

• “As long as the legal framework around personal data and blockchain remains unclear, entrepreneurs and those designing and building blockchain-based platforms and applications in Europe face massive uncertainty. That can put a brake on innovation,” EU Blockchain body said in a report.

4. Arizona Bitcoin Trader Sentenced to 41 Months in Prison for Money Laundering

• The trial showed evidence of Costanzo (bitcoin trader’s name) using bitcoin to purchase drugs as well as providing bitcoin to individuals buying drugs via the internet.

5. Bitcoin Not Stable Enough to Be Used as Real Money, Says UBS Strategist

• UBS global macro strategist Joni Teves said Bitcoin is still too “unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.” Teves also cited the crypto’s lack of price stability as one of the reasons why Bitcoin can’t be considered as real money.

6. Wikipedia Founder Jimmy Wales has ‘Zero Interest’ in an ICO

• The internet entrepreneur also repeated the reservations he had concerning blockchain technology. “I have reservations about blockchain. It’s a super-interesting technology, but it’s clearly a bubble with a lot of mania and hype around it,” said Wales.
• Wales’ views and reservations on blockchain are in stark contrast to the co-founder of Wikipedia, Larry Sanger, who is now the chief information officer of Everipedia, an online encyclopedia which touts itself as the ‘world’s first encyclopedia on the blockchain’.

7. SEC Delays VanEck-SolidX Bitcoin ETF Decision to September

• In an order published on August 7, officials at the agency wrote that they were giving themselves more time to deliberate on whether to approve what would be the first exchange-traded product of its kind in the U.S.
• It’s also perhaps unsurprising, given that in the past, SEC officials have used the agency’s statutory powers to push back decisions on bitcoin ETFs.

8. Dutch Central Bank Does Not Consider Cryptocurrencies as ‘Real Money’

• The divisional director of the Dutch Central Bank, Petra Hielkema, said that due to the volatility of cryptocurrencies and the possibility for consumer risks, it cannot be considered as money.