Market Review 09/03/2018
Posted on April 1, 2018
In the lawsuit, the plaintiffs claim Coinbase employees illegally profited by trading on insider information that the exchange had planned to roll out Bitcoin Cash support in December 2017. Coinbase allegedly artificially inflated the price of Bitcoin Cash, causing customers and the rest of the cryptocurrency market (who did not have the benefit of inside information) to unfairly lose money on their trades.
This clearly shows the problem with centralized exchanges and will undoubtedly push people towards decentralized exchanges.
Bitcoin slumped after the U.S. Securities and Exchange Commission reiterated that many online trading platforms for digital assets should register with the agency as exchanges. Also, many Binance users reported on Reddit and Twitter that a hacker sold all their altcoins to buy Viacoin. Binance froze all withdrawal and responded that they have not been hacked. They say that what’s been hacked is a trading program that many users use on Binance.
This shows once again how sensitive the cryptocurrency market is to FUD. Hopefully Binance does not get really hacked as it currently considers the last standing bastion in the market.
The Coinbase Index Fund will give investors exposure to all digital assets listed on Coinbase’s exchange, GDAX, weighted by market capitalization. If a new asset is listed on the exchange, it will be automatically added to the fund.
This is huge because it opens the way for non-crypto literate people to start investing in cryptoassets at a relatively low risk. It should bring a new wave of capital to the industry which will be more than welcome amidst the current bear market.
This clearly shows that there are still security issues that need to be fixed before cryptocurrencies can be widely accepted.
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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.