CryptoNews: 11th May
Bloomberg create cryptoasset price index
Bloomberg has announced the launch of a cryptoasset price index in conjunction with Galaxy Digital Capital Management, a firm headed by the billionaire Mike Novogratz. The Bloomberg Galaxy Crypto Index will focus on ten cryptoassets and will be weighted thusly:
- Bitcoin (30.00%)
- Ethereum (30.00%)
- Ripple (14.14%)
- Bitcoin Cash (10.65%)
- EOS (6.11%)
- Litecoin (3.77%)
- Dash (1.67%)
- Monero (1.66%)
- Ethereum Classic (1.00%)
- Zcash (1.00%)
Nvidia pray for a return to PoW dominance
Nvidia finally reported the extent of its sales to crypto mining operations, revealing that the company had booked $289m, beating analyst expectations of $200m. This was a significant proportion of its $3.2bn global revenues, and highlights the mining mania that has infuriated gamers by pushing graphics card prices higher (particularly on the resale market).
Yet another exchange raided for alleged impropriety
The South Korean exchange UPbit found its offices raided by the authorities this week, as prosecutors searched for evidence that the company has been illegally moving funds from customer accounts to a separate account allegedly owned by an UPbit employee. The move followed previous raids in the country, including that of Coinnest.
UPbit’s standing as the largest exchange in the country and the fourth largest in the world has led to steep falls across the board, with BTC dropping c. 8% and ETH c. 10% since the news broke last night.
Given running an exchange is akin to printing money, why is it so hard to be honest?
More secure than a Ledger Nano
The Quartz journalist Joon Ian Wong revealed the lengths investors are going to to protect their cryptoassets, with underground bunkers dug into the side of mountains holding the wealthy’s private keys. Xapo, a Bitcoin wallet/vault, is using the facilities of a secure data center as an ultimate last form of defence to deter would be thieves.
Facebook enter the fray
Facebook announced plans to move into the blockchain space, appointing a raft of executives to the blockchain division and moving David Marcus, the former Messenger lead, to head up the division. It’s easy to see why Facebook is moving into the space, especially with the growing threat of Telegram (now armed with a warchest of some $1.7bn) to Whatsapp/Messenger, the number of decentralised identity management/social networks/personal information/secure messenger solutions emerging, the ease of use of microtransactions for advertising with the likes of BAT, and multiple other DLT projects that could pose a risk to Facebook in one form or another.
Immediate use cases for crypto that Facebook could use in one form or another:
- A FacebookCoin for quick/easy transactions (especially as the company has experimented with financial transactions already)
- A rewards system, where posting content can be rewarded with said FBCoin
- A microtransaction ability to enable people to read news links which are hidden behind paywalls without leaving the site through an instant view
- The implementation of something akin to BlockV, where non-fungible digital objects can be bought and sold (similar to CryptoKitties). This would also enable advertisers a new route to display their products both on the site and also crossing over into the real world