CRC Blockchain Industry Newsletter #3
Welcome to the third blockchain industry update provided by CRC research team! This week has been an exciting week in the blockchain industry as the price of Bitcoin has surpassed the $7000. As there are many announcements coming from the New York Blockchain Week, we have a relatively packed newsletter this time. For more details on the Binance Hack, a new bill from US Congressman to ban 'BTC' and more, please scroll down:
1) Bitcoin jumps to 9-month high as price grows by 135% since December
Bitcoin's price has grown by 135% since December 15 when the price fell to less than $3,200. The price has briefly surpassed $7,500 on Sunday, which was last seen on August 2; more than 9 months ago. At the time of publication, bitcoin is trading at $7,120 with a market cap of $125.7 Billion.
2) Ethereum Foundation to Spend $30 Million on Development Over Next Year
The Ethereum Foundation plans to spend $30 million on ecosystem development over the next 12 months.
The foundation’s executive director, Aya Miyaguchi, announced the plan at the ConsenSys-organized Ethereal Summit in Brooklyn on Friday. Over the past year, the foundation spent roughly $27 million on its grants program, which supports critical projects across the ethereum ecosystem.
Last year’s grants were awarded in five waves, with the first wave in March 2018 doling out roughly $2.5 million to 13 projects.
3) Fundamental Labs Fund to Invest $44 Million in Brand-New Bitcoin Miners
Fundamental Labs, a blockchain fund manager that’s backed Binance, Coinbase and Canaan Creative, is investing $44 million in top-of-the-line bitcoin miners, a longer-term bet than most are making in the sector.
Even assuming Fundamental Labs will run all of its 20,000 to 30,000 units with the least powerful of those, its plan could increase the bitcoin network’s total hash rate by at least 1,000 quadrillion hashes per second (PH/s).
That would account for about two percent of bitcoin’s total hash rate at the moment, which is around 50,000 PH/s, according to data from Blockchain.info.
4) U.S. Congressman calls for bill to ‘outlaw’ cryptocurrencies
In a Financial Services Committee hearing on Thursday, U.S. Congressman Bradley Sherman (D-CA) called on Congress to propose a bill outlawing cryptocurrencies.
"I look for colleagues to join with me in introducing a bill to outlaw cryptocurrency purchases by Americans...in part because an awful lot of our international power comes from the fact the dollar is the standard unit of international finance and transactions," Sherman said.
5) A multi-cryptocurrency ETF has been filed with the SEC, as two other applications remain pending
A new filing for a crypto-based exchange-traded fund (ETF) has been sent to the U.S. Securities and Exchange Commission (SEC), which is yet to approve any crypto ETFs.
Commodity pool operator United States Commodity Funds LLC (USCF) will sponsor the ETF alongside Crescent Crypto, a New Jersey-based hedge-fund. The USCF Crescent Crypto Index Fund will “track the performance of a market capitalization weighted portfolio of Bitcoin and Ether," offering investors "cryptocurrency exposure through a public vehicle."
Two separately filed, pure-bitcoin ETF applications are still pending with the SEC.
6) Crypto Exchange Binance Says It’s Revamping Security in Post-Hack Update
Cryptocurrency exchange Binance said it is revamping security measures after losing some 7,000 bitcoin worth over $40 million in a hack earlier this week.
“Significant” changes related to its application programming interface (API), two-factor authentication (2FA) and withdrawal validation are being made, Binance CEO Changpeng Zhao said in a blog post published on Friday.
The exchange did not disclose more details regarding these efforts, but said it is also improving its risk management and know-your-customer procedures to fight phishing, among other additional security measures at the back-end.
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