Weekly Skim for Apr 23rd – Apr 29th

 

Here is my take on last week’s events in the cryptosphere…

I’ll lead off with Factom. Factom rose sharply over this last week mostly on news of their successful funding round closing at over 8 millions dollars. Factom is still one of my favorite tokens as I see massive potential with the problems they are aiming to solve in the mortgage and title related industries. Factom is now sitting at over $7 a coin at the time of this writing.

Next up I would like to note that Ethereum is being considered for a possible ETF this week. While its always hard to tell exactly what is affecting prices with these currencies, I believe this is a big reason for the huge price move this week. We saw ETH go from the $60 range to the $80 range during this news. Not sure what to expect here, but my gut feeling tells me that ETH has a little better chance of getting approved before Bitcoin will as far as an ETF.

Also, a big mention to what is going on with Litecoin this week. Litecoin has finally reached consensus on adopting Segwit (segregated witness). Now with this milestone in place, it paves the way for the implementation of the lightning network. This will allow off chain transactions and payment channels between trusted parties. I think this is big news. If the debate of implementing these same things in Bitcoin keeps dragging on for a few more months, I wouldn’t be surprised to see a rally in Litecoin over that same period.

All in all, it’s been a wild couple of weeks in the crypto world. We saw the Winklevoss twins try to get a bitcoin ETF approved and were shot down. Prices of BTC rose sharply on the news before hand to over $1000 and then dropped down below $900 after the rejection. Now that the ETF is being reconsidered the price is back at over $1400 BTC as of this writing. Anyone’s guess of where its going from here. Trade and invest accordingly, stay safe out there!

6 thoughts on “Weekly Skim for Apr 23rd – Apr 29th

  1. Interested in your idea that Ethereum could get approved for an ETF before Bitcoin. Also, very curious as to what will happen if (or when I should say) an ETF gets approved. Just not sure how it would effect the supply side of things. Thanks for your perspective.

    • Katherine,

      1 reason I said that I think Ethereum could get approved over Bitcoin would be a counter to why supposedly 1 of the reasons the SEC shot down Bitcoin ETF. Their reasoning was that because bitcoin’s ASIC(application specific integrated circuit) chip manufacturing largely comes out of China, their fear was that there could be some possible control mechanism coming from a foreign entity or country. With Ethereum the POW(proof of work) algo is different making it largly ASIC resistant and tthus more decentralized and certainly not centralized in any one country. So with that in mind, it would be hard for them to make the same argument with Ethereum. Your second question to what do I think would happen if an ETH ETF gets approved, I would say a big price spike in the short term on new demand market, and then a pull back and drop in price after cooler heads prevail and try and figure out what they just bought, lol.

  2. I think for ETFs to really take off with crypto, it is going to take multiples.

    I am not sure why I would hold an ETF in Ether or DASH etc. rather than just hold the currency itself.

    The answer though is the multi trillion dollar retirement world. Imagine being able to take money in your IRA or 401 and invest in Monearo for instance.

    • Agreed! Yeah not sure why I personally would want to hold a crypto ETF when I could just hold a private key. But I know that there are people that would for one reason or another. So it seems on this news some entities are rushing out and purchasing Bitcoin and Ethereum so they can issue said ETF’s maybe? Would also be interesting to watch the fraud o meter with a crypto currency ETF as far as them making more than they are actually holding keys. I see how they did this with gold and silver. But with crypto currencies that can be at any time cryptographically proven or signed to prove actual ownership, at any time you could audit the holding entity and just say “hey prove you have these keys”. Would be a lot harder for them to spoof the supply. But who know the god awful derivative instruments they could also come up with, so who knows what they would do.

  3. I listened to the Factom discussion with their marketing director on the ‘lets talk btc’ podcast. It weirded me out a little bit that there were US gov’t agencies, not to mention the Gates’ foundation involved in its promotion and development.

    • Haha,

      Yeah I just listened to that one too the other day. I like that show, The Crypto Show, those dudes are hilarious! Their studio is now in Defense Distributed where they make those ghost gunners (Cody Wilson and Co.). Yeah I hear ya, I felt the same way. I guess at the end of the day customers are customers. And just like anything technology can enable the good and the bad. It’s all good gov agencies can do their controlling thing and we will work towards freedom. I think we will win!

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