VeradiVerdict - On Recent Price Changes - Issue #13

VeradiVerdict

Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing into blockchain companies and cryptocurrencies. I focus on early investments and want to share my thoughts and what’s going on in the industry in this weekly newsletter.


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Editorials

The most common question I was asked last week was about the price of Bitcoin and cryptocurrencies and what I think. I tend to look at price once a day so that I can be informed of the state of the market but I really don’t put too much weight on price. I focus on investing into companies, infrastructure, and applications to get mainstream adoption of the industry, price will come later and be a result of that.


I think two of the major factors that have contributed to this price decline are the recent SEC regulations of two token projects (see here) and the forking of Bitcoin Cash (see here).


The industry is still very early, and I think two factors will contribute to the next bull run, more usage of decentralized applications and institutional capital. Augur and 0x are starting to see some usage but we won’t see a significant increase of usage until cheaper and easier fiat onramps and much more scalable underlying blockchains. For institutions to invest into the space, we need to see more infrastructure around exchanges and custody. Companies like Bakkt, Eris, and Fidelity’s blockchain suite are helping with this.


The 2013 crypto bubble took some time to recover from, and we’ll recover from this one.

Digests

The State of Crypto Funds-Part 1

This story introduces The State of Crypto Funds report, a data-driven report on the current crypto fund landscape realized by Crypto Writing Agency. You can find Part 2 there, and the full report on…

Bleeding – AVC

The Nasdaq is down almost 15% from its labor day highs…

Token distribution in perspective: Livepeer’s merkle mine not as successful as portrayed

Token generation & distribution has always been a top concern for anyone seeking to establish truly decentralized networks. We’ve seen many methods attempted, but it remains quite challenging to…

Programmable Constraint Systems for Bulletproofs – Interstellar

We are excited to share our progress on extending our Bulletproofs implementation with a constraint system API which enables zero-knowledge proofs of arbitrary statements. In our previous article, we…

In the Tweets

Ben Carlson

@awealthofcs

Sure crypto is down 90% or so in some cases but so was one of the most successful companies in the history of mankind being run by the richest man on the planet

All crypto has to do is follow the exact same path as Amazon. Why is that so hard to imagine?

6:57 AM - 26 Nov 2018

Katherine Wu

@katherineykwu

For those of you who are interested in reviewing + keeping up with the SEC's actions in the crypto space, I have compiled all the SEC actions/ statements thus far.

Check it out and let me know if i have missed anything. Otherwise, nerd out and enjoy:)

https://t.co/r5IBz0xyHf

1:57 PM - 20 Nov 2018

News

600K Bitcoin Miners Shut Down in Last 2 Weeks, F2Pool Founder Estimates

Between 600,000 and 800,000 bitcoin miners have shut down since mid-November amid declines in price and hashrate across the network, according to the third-largest mining pool.

Circle's Dollar-Tied Stablecoin Fully Backed, Auditor's 'Attestation' Says

Circle Internet Financial had just under $127.5 million backing the dollar-pegged USD Coin at the end of last month, enough to redeem every token at the time, according to a major auditing firm.

Bitcoin Mining Firm Giga Watt Declares Bankruptcy Owing Millions

U.S.-based bitcoin mining firm Giga Watt has declared bankruptcy with millions still owed to creditors.

Regulations

Four More ICOs Hit with Cease-and-Desists by Colorado Securities Regulator

The Colorado Division of Securities has issued another batch of cease-and-desist orders against allegedly fraudulent initial coin offerings (ICOs).

Singapore's Stock Exchange Clarifies Rules for Listed Firms Issuing ICOs

In a column published Thursday, Tan Boon Gin, CEO of the stock exchange’s regulatory subsidiary, SGX RegCo, stressed that any tokens launched in an ICO are not listed on the SGX and that these rules are applicable only for the companies themselves.

Will Ohio’s Acceptance of Bitcoin for Tax Payments Increase Legitimacy of Crypto?

Businesses in the state of Ohio are now permitted to settle tax payments using Bitcoin (BTC) and experts believe it will legitimize BTC

New Products and Hot Deals

Introducing The Kyber Trading API – Kyber Network

At Kyber, we’re always looking for ways to simplify access to our liquidity protocol. A major area for enhancement is to allow a wider range of programs to interact with our protocol. Today we’re…

Coinbase Backs Security Token Startup's $12.7 Million Funding Round

Security token startup Securitize announced it has raised nearly $13 million in a Series A funding round Monday as part of its mission to digitize traditional securities products on a blockchain.

Bitcoin Smart Contract Startup RSK Unveils New Infrastructure Project

RSK Labs, the startup working on smart contract functionality for bitcoin by way of sidechains, is operating under a new banner as part of a wider reimagining of its development ecosystem.

IBM, Columbia University Launch Blockchain Accelerator Programs

Tech giant IBM has teamed up with Columbia University to launch a pair of technology accelerators as part of a broader push to spur blockchain development.

Meet with Me

I will be traveling this fall for certain events, and to meet with investors. Let me know if you and your colleagues would like to meet in person.


New York, Consensus Invest, November 27