Market Review 16/02/2018
Posted on April 1, 2018
Coinbase, the biggest crypto broker and one of the biggest exchange, has launched a new service for merchants, allowing them to seamlessly integrate crypto payments by adding a Coinbase Commerce button, not much different than the PayPal button. This plugin also integrates with Metamask which makes transactions as easy as they can be.
This really has the potential to attract newcomers to cryptocurrencies since it allows them to spend it easily, without having to switch it back to fiat.
Popular cryptocurrency exchange BitGrail has reported a loss of 17 million Nano on Monday, valued at over $170 million at the time of the hack. BitGrail says that this is due to a flaw in the security of the Nano system. The Nano team, however, claims that there are no security flaws in their code and that the “hack” is a way for the BitGrail founder, Francesco Firano to cover the fact that he has been mismanaging customer funds.
As overall cryptocurrencies’ market cap rises, so does the profitability of hacks. 2018 will see it’s fair share of digital thefts as more exchanges come online every day, often without nearly enough understanding of the industry’s security requirements. Better to stay safe and keep your crypto assets in vaults or in hardware wallets.
On Wednesday, Litecoin beat the market by gaining over 30%. This might be due to news of an upcoming fork called “Litecoin Cash,” which is promising new tokens to existing holders in a ratio of 10LCC for 1LTC. The founder of Litecoin, Charlie Lee, and the LTC community quickly dismissed the project, saying that it was a scam meant to confuse LTC owners.
On the other hand, the imminent arrival of Litepay as a low-cost competitor to Bitpay has investors confident that Litecoin can become the de facto mean of payment in the industry. It will be interesting to see the development in the competition of Bitcoin Cash and Litecoin within this vertical.
Bitcoin price surged past $10,000 on Thursday afternoon for the first time in two weeks in the wake of positive regulatory developments from key market South Korea. Barely a month ago, the local justice minister shook investor confidence in this sentiment-driven market when he said the government was preparing to ban trading on cryptocurrency exchange sites. The latest reports from the market indicate that the government is instead contemplating a licensing system to regulate such trading.
According to Business Korea, the government no longer feels the need to use hard line policies to regulate local crypto trading since this will have an adverse effect on the growth of the blockchain technology and related industries.
This really goes to show how fast the market is to react when important news affecting cryptocurrencies are released, whether they are good or bad. A younger and inexperienced demography within cryptocurrency markets might explain part of these major reactions and ensued price swings.
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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.