CRC Blockchain Industry Newsletter #2

Welcome to the second blockchain industry update provided by CRC research team! There are major events happening in the industry as the BTC is trying to cross the $6000 resistance. The major news of the day was the Binance hack, in which the hackers managed to steal 6000BTC from the Binance hot wallet. The cryptoasset market cap has declined around 4% with BTC being the most resilient. Based on the news Binance Token(BNB) has lost around 9% of its value. For more details, please scroll below:

1) Binance security breach results in a loss of $41 million, or 7000 BTC

Source: Binance

Binance, one of the biggest crypto exchanges, reported a security breach on Tuesday that resulted in the theft of $40.6 million, or 7000 BTC. 

According to the company's blog post, the hackers were able to obtain a large number of users API keys, 2FA codes, and potentially other information. With this information, the hackers withdrew 7000 BTC in one transaction.

Binance will use the #SAFU fund to cover this incident in full. No user funds will be affected.

Binance claims the security review will include all parts of their systems and data, which is large. It is estimated to take about one week, during that period, deposits and withdrawals will need to remain suspended.

2) Regulators Ready to Approve Ethereum Futures, CFTC Insider Says

Source: Coindesk

The biggest development in recent memory dropped yesterday as the CFTC appears ready to approve ETH futures. According to the news by coindesk, there are no certain plans to launch and ETH futures, but regulators says they would consider it if there is a project that apply to serve it.

Futures are a prerequisite for an ETF. They are the first step towards the institutional adoption of the cryptocurrencies. It is a financial infrastructure that every major/minor commodity/security gets exposed to.

Based on the Coindesk news, the ETH has appreciated 10%. In 2017, BTC also had a similar price pattern before the announcement of the BTC futures. If ETH is to follow the same pattern, it is likely that ETH prices will appreciate up until the ETH futures are provided and then will follow a sharp decline in the prices.

3) Messaging Giant WeChat Bans Merchant Users From Crypto Trading

Source: TheBlock

The policy revision in China states that "merchants may not engage in illegal transactions such as virtual currency [trading]" or token issuing, alongside other banned payment outlets like pornography or online gambling. The new rule comes into effect at the end of the month, on May 31.

Binance CEO Changpeng "CZ" Zhao said that it was "probably not [WeChat's] own choice" in a tweet, suggesting that the new restrictions could create an opening for crypto companies to eat WeChat's lunch on the payments side of its business. 

WeChat is a dominant channel for over-the-counter (OTC) cryptocurrency transactions in China, according to founding partner of Primitive Ventures Dovey Wan, meaning the policy-change could strain the liquidity pool in the region.

4) Bitfinex releases white paper for $1 billion token sale

Source: Coindesk

In addition to the information provided in our previous newsletter, Bitfinex also described a number of new upcoming projects to launch this June: Bitfinex Derivatives, exchange ecosystem eosfinex, and iFinex IEO Platform. These projects are expected to provide more value to the LEO token.

The tokens will be issued by British Virgin Islands-company Unus Sed Leo Limited.

On May 4, Renrenbit, a crypto-lending application founded by Bitfinex shareholder Dong Zhao, started taking in pre-orders from users who want to participate in the public phase of the exchange’s upcoming $1 billion token sale.

5) 30+ assets now supported on Coinbase Custody

Source: Coinbase

Coinbase recently became the first institutional-grade, qualified custodian to offer staking services for assets held offline. They are also among the first to offer OTC trading directly from cold storage. These offerings are allowing the clients to participate in all facets of the cryptoeconomy — trading, staking, governance — all while keeping their assets securely offline.

On the asset front, Coinbase has added support for nearly 20 new assets over the first few months of 2019, taking our total asset support to more than 30. These assets include popular cryptocurrencies like Augur (REP), ZCash (ZEC) and Tezos (XTZ), but also smaller-cap projects like FOAM (FOAM), Kin (KIN) and Maker Dai (DAI).

Important Note:

- Nothing written in CRC newsletter is legal or investment advice and should not be taken as such.

- CRC does not make any guarantee or other promise as to any results that may be obtained from using our content.

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- We are dedicated to providing professional, international and institutional investment banking services to blockchain entrepreneurs.

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