Token Report by New Alchemy Newsletter Issue #1: Summer of Crypto
Tokenize it.
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Contrary to the rumors that Bitcoin’s bull market is back, we can confirm: the Token Report by New Alchemy Newsletter is back. Reporting from deep within the New Alchemy market research team, we are excited to be bringing you our weekly analysis of the headlines and technical developments in the cryptocurrency economy.
Since our last issue, the total market capitalization of cryptocurrencies has sustained about $70 billion in losses due to continued downward pressure on the largest coins, Bitcoin and Ethereum. Despite this price capitulation, hashrates for the most popular blockchains have continued their rapid growth, and crypto-at-large has reached cosmetic milestones, i.e.:
- “Digital currency” was mentioned by name in a White House Executive Order,
- The first acquisition of an entire business using only cryptocurrency was closed,
- Singapore’s Monetary Authority tokenized their dollars on the Ethereum blockchain,
- and the United Nations inaugurated a panel for exploring opportunities related to blockchain.
The market reached some quantitative milestones, too; according to a Q1 and Q2 summary report by Crypto Valley, ICOs raised over $13.7 billion in the first half of this year, already doubling ICO’s success in 2017. The total cryptocurrency market cap, then, doesn’t paint the whole picture. And neither do ICOs, cause there’s a new kid on the block.
1 Short Read: Introducing STOs
The federal SEC has made it clear that they view many Initial Coin Offerings as representing offerings of securities, and state securities regulators have taken action against some ICOs for not being compliant with the existing securities regulations framework.
In juxtaposition, Security Token Offerings are sold and designed with compliance in mind from the outset. An STO is a capital-raising tool which has garnered interest from crypto investors, but also from the traditional finance community, as it is a recognizable format which is designed to be more cost effective than today’s standard.
In the introduction of a new series on the New Alchemy blog, we explain what STOs are “all about” and the opportunities they present to investors and issuers:
News you may have missed in our absence
In case you took an extra-long summer vacation this year (you deserve it!), here’s some of the most notable stories from the crypto community since our last issue:
- The Swiss Stock Exchange announced plans to create their own crypto exchange — Business Insider
- CBOE filed for a Bitcoin ETF (CCN), and the SEC received “overwhelming” support from the public — CryptoBriefing
- Litecoin and TokenPay purchased 9.9% ownership in a German bank — CoinDesk
- Andreessen Horowitz announced a $300 million fund to invest in crypto, to be led by their first-ever female general partner, Katie Haun- Business Insider
- Bitmain has been valued at ~$12 billion after closing their series B: “Bitmain raised between $300 million to $400 million from Sequoia Capital
subsidiary Sequoia China, U.S. hedge fund Coatue, and Singapore-based governmental investment fund EDBI.” — CoinTelegraph - Coinbase launched their custody services (for a minimum deposit of $10 million), and also launched “Coinbase Pro,” which replaced the GDAX brand
- Spin, an electric scooter sharing startup, is seeking $125 million for their Security Token Offering — Axios
- The Kiel Institute for the World Economy released a report that said “digital currencies issued by a central bank [are] an opportunity for a more stable financial system,” but warned that today’s largest cryptocurrency are too volatile for use as reserve currency — CoinTelegraph
- A brief prepared by analysts at the Cato Institute urged US regulators in a 2-tiered proposal to “lay out clear rules which determine when a cryptocurrency issued through an initial coin offering (ICO) is a security and when it is a commodity.” — Forbes
- Augur, the predictions platform, has opened to the public — Bitcoin Magazine
- For the first time, a Chinese judge recognized blockchain evidence as proof of a defendant’s innocence — Bitcoinist
- The US Chamber of Commerce published a policy whitepaper about the future of fintech, including advocating for the promotion of ICOs — Crowdfund Insider
Enjoy the rest of your Summer of Crypto, and if you have any questions about today’s issue, reach out!
@KyleSGibson
New Alchemy is a leading blockchain strategy and technology group specializing in tokenized solutions for the most innovative companies worldwide. Token Report is a part of New Alchemy’s market research team, focused on providing independent data insights and research on digital currency markets. Get in touch with us at Hello@NewAlchemy.io.
