Triaconta Weekly #228
The following topics will be addressed in this weekly:
- Bundle performance
- Winners & Losers
- Market overview
The value of the bundles hardly changed this week. Uptober is hopefully going to live up to its name in the time to come. Although labor market and interest rate figures in America seem to have less influence on the crypto market lately, they remain important for general investor sentiment. And that can still be much better of course.
There is currently hard work being done both in America and Europe on clear rules and more oversight of crypto currency trading and ownership. There is always the risk here that innovation will be unnecessarily restrictive. With enough attention to this, in the end it will mainly begin to give a lot more people access to cryptocurrencies and then through traditional parties such as banks.
Winners & Losers
Elrond (+11%) rises on confirmation on Oct. 10 of a Maiar launchpad for projects using Elrond. The biggest DeFi riser is Convex Finance (+11%). Maker DAO’s (+8%) decision to start holding 500 million of their reserves in US government bonds is well received. Lido DAO (-10%) unfortunately falls further on a monthly decline of 15% for the number of Ethereum committed to the network. IOTA (-9%) falls at the start of the #IOTA weekend in Berlin. ApeCoin (-8%) hands back a bit of last week’s gains.
SWIFT has chosen the Chainlink (LINK) Cross-Chain Interoperability Protocol for an initial proof of concept with blockchain. CCIP will enable SWIFT messages to provide instructions for on-chain token transfers on almost any blockchain. This could potentially link capital markets in the traditional financial sector with cryptocurrency markets.
The Basel Committee on Banking Supervision – a grouping of international regulators – suggested in June that banks’ exposure to crypto currencies such as bitcoin and ethereum should never exceed 1% of core capital. Banks are now afraid this could cause them to miss the boat as more and more institutional and retail customers demand crypto currency products. On Tuesday, a coalition of eight major international financial lobby groups published a paper calling these “bans” on crypto ownership too restrictive for innovation. If the issue is not addressed, “it may not be economically feasible and rational to make the investments necessary to facilitate customers’ needs for crypto-asset-related activities, which would likely lead to a shift of activities in this space to the non-banking sector,” which is less regulated, the paper said. They call for at least a five-fold increase in the proposed limits.
On Wednesday, the European Council adopted the legislative proposal (MiCA) to set rules for how exchanges and other service providers in digital assets should operate in EU member states. The European Parliament will vote on Oct. 10. If adopted, which is not yet certain, member states will have 12 to 18 months to develop the rules into national legislation. This will ensure the same rules for identity verification throughout Europe. Paying with crypto will also become less anonymous because payment processors will be required to pass on the identity of the consumer.