Crypto’s Open Secret: Its Multibillion-Dollar Volume Is Suspect (Bloomberg via Yahoo Finance)
Nearly two months ago, we wrote about BitForex, the Singapore-based exchange with suspicious trade volumes and a horrible logo. Bloomberg has finally caught up to Modern Consensus and they have some more details about it. Why would BitForex do it? “Transaction mining, also known as trade mining, is a controversial practice. On BitForex, users earn the equivalent of $1.20 in digital tokens issued by the exchange for every $1 they pay in transaction fees. It’s a system that critics say is tailor-made to encourage wash trading — in which a trader, or a team of traders, buy and sell the same asset repeatedly to inflate market activity,” writes Bloomberg’s Camila Russo and Benjamin Robertson.
Coinbase’s New Asset Listing Process (Coinbase)
Bitcoin’s volatility is down. Crypto trading is lighter than it once was. So what’s an exchange to do? Make it easier to list new currencies? What could possibly go wrong? Also, as The Block reports, Coinbase will let you buy a bundle of cryptocurrencies together, in case you don’t know what you want. Then again, should you really be investing in something you don’t know enough about to pick one over the other?
Beaten-down cryptocurrency ether is about to ‘rally strongly,’ says Wall Street’s Tom Lee (CNBC)
Uh-oh… We’ve also written a lot about Tom Lee’s outrageous predictions for Bitcoin’s year-end price. Now he sees a “major trend reversal” in ether. So, maybe not?
Austria will use Ethereum to track up to $1.3B in government bonds (The Next Web via MSN Money)
Ethereum isn’t just for Tom Lee to speculate on, it also has some use. Austria is using it to keep track of a new bond coming to market next week. “Ethereum will pull data about the bonds from the Auction Procedure for Federal Bonds of the Republic of Austria (ADAS). It will then notarise the bonds as a HASH value in Ethereum’s blockchain. The Republic of Austria guarantees the bonds and the Luxembourg Stock Exchange lists them,” writes The Next Web’s David Canellis.
Crypto Advocates From Coinbase, Ripple, ConsenSys, Blockchain, Fidelity, Nasdaq Urge Congress to Act Now (Daily HODL)
Ohio’s Warren Davidson, who represents his state’s 8th District in Congress, held a roundtable with some crypto types. It must have been a big table because there were 45 people there, including some from Nasdaq, Fidelity, State Street, Coinbase, Circle, and Andreessen Horowitz. You can read some highlights here or watch CNBC’s video of the entire thing (nearly two hours long) here.
Blockchain Hype May Finally Turn Into Reality in Pharmaceuticals (Bloomberg)
Nothing has happened yet, as far as we know, but this sums up the article: “The Drug Supply Chain Security Act from 2013 requires drug companies and their supply-chain partners to more closely track where their finished products are shipped, making counterfeit medicines harder to sneak into the system and easing drug recalls. By 2020, pharmacies and hospitals must be able to verify that the drugs they’re dispensing came from manufacturers or repackagers, which divvy up huge batches of pharmaceuticals into the actual bottles that get distributed in pharmacies or hospitals. While pharma giants are still evaluating how to comply, health-care analysts says the impeding deadline is leading firms to seriously consider the blockchain, since it’s designed to create detailed and immutable databases,” writes Matt Leising.