Weekly Blockchain Insights (CW 28-2020)

13. Jul 2020Weekly BC Insights

IPOs, Blacklisting & Staking tokens

 

Blockchain Tweets

In Weekly Blockchain Insights, we share the most interesting Blockchain Tweets, discussions about crypto from all blockchain ecosystems and various research and use case insights from the past week. Make sure to sign up for the newsletter below and get all blockchain insights to your inbox.

This week’s blockchain insights cover a wide range of topics including stablecoins, Central Bank Digital Currencies, crypto investing, and potential IPOs of crypto companies in 2020.

If you come across a great Tweet in the future, please tag us @BCComparison. And make sure to join our new Telegram group where we collect insights from all ecosystems: @BCinsights.

 

DAOs, IPOs, CBDC & Stablecoins

DAOs haven’t received widespread attention in the last 2 years but the space developed rapidly. Locked-in values have risen and serious initiatives and investments are being made. It’s easy to launch a DAO on Aragon and info is getting accessible with dashboards from Deepdao.io. Also, DeFi projects thrive towards decentralized organizations and help the DAO ecosystem grow.

Coinbase has initiated preparations for a stock market listing that could come as early as this year. Earlier this year, Ripple CEO Brad Garlinghouse, already predicted that IPOs will become more prevalent in the cryptocurrency space and that Ripple could be among the first companies. Other companies such as BlockFi may follow in 2021.

China is currently the clear leader in central bank digital currencies. Other countries discuss opportunities and run experiments while China is planning a real rollout. In Germany, Prof. Philipp Sandner shared an open letter with a roadmap to enable the digital programmable Euro.

The research company The Block reported that one crypto address was blacklisted by Circle in response to a request from law enforcement. This address with 100,000 USDC can neither send nor receive any transactions anymore.

Further investigation from The Block showed that Tether has also engaged in blacklisting of crypto addresses since 2017 and blacklisted 24 just in 2020.

Very likely, law enforcement will request more blacklistings and all centralized stablecoins will require KYC and AML checks at some point. This should lead to reduced usage of centralized stablecoins and centralized exchanged in favor of decentralized stablecoins and DEXs.

 

Crypto investing

The number of crypto addresses that hold more than 1000USD is at all-time highs.

Staking coins such as Cardano and Tezos performed comparably very well over the past year. In a similar fashion, DeFi projects utilize effectively staking incentives to grow liquidity and users.

On Tiktok, people created viral videos for Dogecoin and pumped the price up. This was all over Twitter and all kinds of crypto users and leaders acknowledged the new marketing channel and a potential return to a crypto bull market.

CZ from Binance predicts that it will be more important to differentiate among projects during the next altseason compared to 2017. Besides the Dogecoin pump, the latest rise in prices of Cardano, Chainlink, Compound and Aave correlated with large announcements and serious development.

Whenever prices are rising in crypto or DeFi, investors wonder if valuations are already too high to get into an asset. Prices of DeFi projects have risen significantly in recent months but DeFi is still very early stage. There are many factors that could lead to further growth but one must very well understand the token, and include transaction costs in calculations of liquidity mining returns.

Ari Paul describes the flow of funds in crypto and the difference of “paper profits” and “real profits”. Two traders can trade any asset back and forth with each other and drive up the price. However, they can only take a profit as a group when a third party enters the game. In 2017, many new investors entered cryptocurrency and earlier investors were able to lock in a profit (25B USD). Usually, rallies are a mix of insiders trading and some new money. In crypto & DeFi, early investors & users are especially rewarded through mining and staking incentives.

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