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Fidelity Investments Entering Crypto as Debate Over ‘Institutionalization’ Grows  

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One of the world’s biggest asset managers is planning to launch new cryptocurrency offerings by the end of the year, the latest evidence of a broad institutional push to bring digital assets mainstream.

Fidelity to Enter Crypto

Fidelity Investments, the world’s sixth-largest asset manager, is developing a new suite of crypto- and blockchain-focused products, according to CEO Abigail Johnson.

“We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time. We hope to have some things to announce by the end of the year,” Johnson told the Boston Fintech Week conference on Friday.

While details remain scant, Johnson said Fidelity’s forthcoming offerings aren’t what she expected when her firm first began researching the space.

As CCN quotes:

“What we started with was building a long list of use cases for either bitcoin, Ethereum, other cryptocurrencies, or potentially just raw blockchain technology. Most of them have been scrapped by now or at least put on the shelf. The things that actually survived were not the things I think necessarily we expected. We were trying to listen to the marketplace and anticipate what would make sense.”

As Hacked reported last October, Fidelity appears to have been one of the first major institutions to mine cryptocurrency. At the time, Johnson acknowledged that her company’s U.S.-based mining operation is “making a lot of money” but the real motivation was to learn how networks and consensus operate.

Crypto Adoption Grows but Questions Remain

With $2.5 trillion in assets under management, Fidelity is one of the biggest players in global finance and its entry into cryptocurrency will provide an instant legitimacy boost to the sector. Despite the recent market downturn, large institutions ranging from Goldman Sachs to Intercontinental Exchange have announced new crypto ventures all designed to bring digital assets to mainstream circles. Although the pace and timing of these initiatives varies, the underlying trend remains overwhelmingly in favor of greater adoption, not less.

Some analysts have warned that the institutionalization of cryptocurrencies such as bitcoin undermines the core mandate of peer-to-peer money. This view was recently conveyed by Andreas Antonopoulos, who argued that the inevitable rise of the bitcoin exchange-traded fund could do more harm than good.

“ETFs fundamentally violates the underlying principle of peer-to-peer money, where each user is not operating through a custodian but has direct control of their money because they have direct control of their keys,” Antonopoulos said.

At this stage in the game, evaluating the impact of institutional money on cryptocurrency isn’t an exact science. Several analysts have noted correlations between, say, the launch of bitcoin futures and the meteoric drop in prices, but establishing causality is less credible given the small size of the futures market relative to trading over-the-counter and on digital exchanges. It has also been relatively easy to show the positive impact of bitcoin futures on volatility. As Diar points out, bitcoin’s volatility has declined sharply since December.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 698 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

EOS Price Analysis: Cardano Founder Charles Hoskinson Warns of Regulatory Action Against EOS

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  • Charles Hoskinson projects some form of action from the SEC on EOS.
  • EOS/USD enjoys a relief rally on Wednesday, as price moves further north following recent bounce.

The EOS price hasn’t done much but decline of late. Back in August, EOS/USD entered into a very stubborn narrowing range. The price had been confined within this mode of trading right up until November. The range was seen from the $6 territory down $4 area. On the 19th November, EOS/USD bears had finally pushed for a breakout to the downside, from this mentioned range-block. Following this fall, the price plummeted over 60%, over the course of 3 weeks.

Cardano Founder Hoskinson Expresses EOS Regulatory Concerns

The Cardano (ADA) founder, Charles Hoskinson, has beliefs that EOS chief developer of the network is likely to face strong action from regulatory bodies. The SEC would be a potential regulator that investigates their $4bln ICO, as he has described as “egregious.”

Speaking at a press conference in Edinburgh, Charles Hoskinson has made a projection that the Securities and Exchange Commission will look at taking firm measures against Block.One. He believes that this would be done due to the way it had run and hosted the EOS ICO.  Hoskinson further detailed how the EOS token sale sits within the remit of the regulators for them to review the potential for harm of retail investors in the United States.

Charles Hoskinson Anticipating SEC Action on EOS

Hoskinson predicted that the SEC will likely bring punitive measures against Block.One for the way it ran the EOS Initial Coin Offering. The IOHK leader explained that EOS’ token sale falls well within the regulator’s remit to take action against any financial activity which harms US retail investors.

There were several fundamental issues with the EOS ICO, which clearly raise red flags, from Hoskinson’s view. He expressed for particular focus on the amount they had raised over the course of a year, in addition to their “utter lack of respect” for investors. Hoskinson said, the SEC “needed” to take action.

Technical Review – EOS/USD

EOS/USD daily chart

Most recently, the price has managed to stabilize, which could be due to sellers exhaustion. A bounce was seen on 7th December, after falling to a low of around $1.55. The bulls are attempting to make a convincing push back into the $2 territory. Demand in the near-term should now be observed from that recent low, $1.55 up to $1.80.

It is interesting to note the area of which EOS/USD received some comfort on 7th December (this is a known acting support). Back in November 2017 during the big bull run, the price consolidated within the mentioned demand zone for a brief period. This came before continuing its strong move to the north.

Downside Observations

EOS/USD daily chart

Should the near-term area of support fail to hold, then there could be some devastating moves to the downside. A breach of the $1 mark could very well be seen. The next major demand area will be within the depths of $0.90 region. EOS/USD had last traded down here again within the early part of Nov 2017 bull run.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 85 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

Coinbase to ‘Explore Support’ for Over 30 Altcoins; XRP, Cardano, EOS, NEO & More

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Coinbase has announced plans to ‘explore support’ for over thirty cryptocurrencies, with major altcoins such as XRP, EOS, Cardano and Stellar up for consideration.

Just yesterday Coinbase Pro surprised everyone by suddenly accepting inbound transfers of four new ERC-20 tokens: Loom Network (LOOM), Civic (CVC), districtOx (DNT) and Decentraland (MANA).

Coinbase Gets Alt-Happy

The addition of those four tokens leaves twenty-seven coins remaining out of Coinbase’s list, published yesterday. According to the announcement, the following batch of coins and tokens are currently being explored:

“Cardano (ADA), Aeternity (AE), Aragon (ANT), Bread Wallet (BRD), Dai (DAI), EnjinCoin (ENJ), EOS (EOS), Golem Network (GNT), IOST (IOST), Kin (KIN), Kyber Network (KNC), ChainLink (LINK), Loom Network (LOOM), Loopring (LRC), Mainframe (MFT), Maker (MKR), NEO (NEO), OmiseGo (OMG), Po.et (POE), QuarkChain (QKC), Augur (REP), Request Network (REQ), Status (SNT), Storj (STORJ), Stellar (XLM), XRP (XRP), Tezos (XTZ), and Zilliqa (ZIL).”

Caveats

Such news will be a boon to bag-holders everywhere, assuming they’re still in the game. However, the announcement does come with a caveat or two:

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading.”

With that said, Coinbase has shown itself to be one of the more cautious cryptocurrency exchanges over the years, and the team don’t tend to make many calls that they can’t back up. As many of these coins have already started to pump following the announcement, it’s more than likely that the exchange is fairly confident that the listings will go ahead as planned.

Coinbase stated the possibility that not all of the assets may get the same level of exposure on the platform, owing to technical and legal difficulties:

“…our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet. Finally, as per our listing process, we will add new assets on a jurisdiction-by-jurisdiction basis, which allows us to add assets efficiently and responsibly.”

Market Effects

Every coin mentioned felt some kind of price volatility yesterday, even the stable coin Dai (DAI). Tezos (XTZ), Quarkchain (QKC), Aeternity (AE) and OmiseGo (OMG) were all leading the front page of CoinMarketCap on Saturday morning, surging to between 15-20% gains overnight.

Many of the other coins mentioned also attempted upswings, such as NEO and EOS, but were halted by the movement of the broader market.

The four ERC-20 tokens added to Coinbase Pro yesterday experienced between 20-50% gains within a matter of minutes, however they couldn’t be sustained and ultimately pulled back by large margins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 104 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Cryptocurrencies

Coinbase Announces Four New ERC-20 Tokens; Prices Surge

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Coinbase Pro announced plans to list four new ERC-20 tokens on Friday, triggering a flurry of buys which saw all four soar to double digit growth.

As per the announcement, inbound transfers have already begun for Decentraland (MANA), districtOx (DNT), Loom Network (LOOM) and Civic (CVC).

Coinbase Focuses on ERC-20

Coinbase announced its intention to focus on ERC-20 tokens back in Q1 of 2018, and Basic Attention Token (BAT) and Ox (ZRX) were the first to gain listings later in the year. As per today’s announcement:

“Following our recent launches of 0x (ZRX), Basic Attention Token (BAT), and our stablecoin, USDC (USD Coin) — all of which are built on Ethereum’s ERC20 standard — we’re now announcing support for Civic (CVC), district0x (DNT), Loom Network (LOOM), and Decentraland (MANA), on Coinbase Pro.”

The news came out of nowhere on Friday afternoon, depriving traders of the usual speculative build-up which occurs with a coin listing. This marks the continuation of a new trend for the exchange following a similar methodology with the recent Zcash (ZEC) listing.

Despite the lack of build-up, the valuations of all four tokens surged within minutes of the Coinbase tweet ringing out.

Decentraland (MANA)

MANA tokens spiked 20% in value following the announcement, with particularly strong gains being felt against BTC.

From a low of 1470 satoshis, Decentraland peaked at 1770 sats before a significant drop-off back to the 1640 range. All numbers taken from Binance, which housed 75% of the $11 million daily trade volume – up 37.5% from before the announcement.

districtOx (DNT)

The Coinbase boost gave DNT 60% gains against Bitcoin today, as an 1,169% increase to trade volume saw the token price rise from 293 sats up to 470 within one hour.

The price was pulled back to the 393 range before finding some stability around 410. Over 80% of DNT trades came from Binance today – which rose from $260,000 to $3.2 million following the announcement.

Loom Network (LOOM)

Loom Network spiked 31% on the announcement, climbing from 1116 to 1465 satoshis and floated by a +200% increase to trade volumes, which rose from $700,000 to $2.2 million.

As with the previous two, the majority of action came from Binance, which housed 77.5% of the daily trades.

Civic (CVC)

Ranked around 130th place by market cap, Civic climbed 28% in value against BTC today, with CVC tokens climbing from 1418 satoshis up to 1827 sats by the peak of the surge. The subsequent drop-off on the Binance trading floor saw the valuation drop as low as the 1620 range, marking an immediate halving of the day’s gains.

Trade volumes quadrupled during the spike, rising from $500,000 to $2 million, with 47% of the total coming from Binance.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 104 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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