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Forbes about Blockchain, Japan's Crypto Regulation, TON & Wirecard
April 22  |  11 min read

Crypto Week #16 Overview

The Coin360 Editorial Team

Bitcoin experienced a relatively stable week, with minor gains for the week. The rest of the top 5 cryptocurrencies — including EOS coming back to number 5 — followed BTC, fluctuating slightly. In other important news, multiple crypto exchanges delisted Bitcoin SV (BSV) following accusations of fraud regarding Craig Wright’s claim of being Satoshi Nakamoto, the launch of Binance Chain, a partnership between two industry leaders in Wirecard and TON, the promising future of venture capital investments in 2019 for crypto, and a tighter regulation in Japan regarding cold wallets will be explored.

Here’s what you need to know about last week’s happenings in the crypto world:

1. Cryptocurrency Market Analysis

Bitcoin (BTC) opened the week at $5,167.32, and its price decreased throughout the day to reach the lowest price of the week at 5,024.07. On Tuesday, BTC started the day at $5,066.58, grew 3.3% and closed the day at $5,235.56. The next few days remained stable, with lesser changes. Towards the weekend, Bitcoin’s value rose slightly and closed above $5.3k from Friday to Sunday. The high of the week came on Sunday, when BTC reached $5,359.93, a 6.7% increase from the low on Monday. The crypto week closed with Bitcoin at $5,314.53, with a 0.4% loss for the day and a 2.8% gain for the week. Bitcoin’s market capitalization was $89.4B on Monday and on Sunday it had gained 4.9% to close the week at $93.8.

Bitcoin 7-day price chart. Source: Coin360

Bitcoin 7-day price chart. Source: Coin360

Ethereum (ETH) started at $167.9 on Monday, and its price deflated 5% during the day, bottoming out for the week at $159.56. On Tuesday and Wednesday, ETH’s price stayed inside the $160s and by Thursday, the price had spiked to reach $175.37. Friday opened at $173.79 and closed at $173.71, experiencing little change throughout the day. The high of the week came on Saturday, at $176.71, 10.7% higher than the week’s low on Monday. On Sunday, ETH’s price decreased and closed the week at $170.05, with a 2.1% loss for the day and a 1.3% gain for the week. Ethereum’s market cap started the week at $17.1B, gained 5.3% during the week, and closed at $18B on Sunday.

Ethereum 7-day price chart. Source: Coin360

Ethereum 7-day price chart. Source: Coin360

Ripple (XRP) opened Monday at $0.328841 and shred 3.3% during the day to reach the week’s low at $0.318090. The high of the week took place on Thursday at $0.345289, 8.6% higher than the low on Monday. Thursday also experienced the highest closing of the week, at $0.337065, and the weekend saw the XRP coin’s price slowly deflate, closing at $0.331902, $0.328476, and $0.322449 on Friday, Saturday, and Sunday respectively, with a 1.9% loss for the last-mentioned day and a 1.9% loss for the week. Ripple’s market cap started the week at $13.47B and had a 0.5% gain to finish Sunday at $13.5B.

Ripple 7-day price chart. Source: Coin360

Ripple 7-day price chart. Source: Coin360

Bitcoin Cash (BCH) opened the week at $288.70, and while it was the lowest opening of the week, Monday also held the high of the week, growing 15% to peak at $332.28. Unlike the aforementioned cryptocurrencies’ fashion, BCH’s price went downwards as the week progressed. From Tuesday to Thursday the coin stayed above $304.74 (Thursday’s low). The weekend saw BCH’s price fall under the $300 mark again and the low of the week came on Sunday, with BCH bottoming out at $281.90. Sunday ended with BCH at $290.48, experiencing a 3.4% loss for the day and a 0.6% gain for the week. Bitcoin Cash’s market cap on Monday was $5.6B and by Sunday it had lost 7.5% of its value, closing the week at $5.2B.

Bitcoin Cash 7-day price chart. Source: Coin360

Bitcoin Cash 7-day price chart. Source: Coin360

EOS (EOS) is back in the top 5, taking Litecoin’s spot in the rankings. EOS opened Monday at $5.55, and held the second lowest price of the week, at $5.31. The high of the week occurred on Wednesday, with EOS peaking at 5.62 USD. By the end of the day, however, it had gone down to $5.46 where it hovered until Saturday. On Sunday, the low of the week took place, with the currency plummeting to $5.06, a 10% fall from the week’s highest price. By Sunday’s end, EOS was at $5.25, with a 4% loss for the day and a 5.4% loss on the week. EOS’ market cap closed Monday at $4.9B, lost 2.5%, and closed Sunday at $4.8B.

EOS 7-day price chart. Source: Coin360

EOS 7-day price chart. Source: Coin360

2. Self-proclaimed Satoshi Nakamoto sues Peter McCormack for defamation

Craig Wright, who has claimed to be the person behind the mysterious pseudonym Satoshi Nakamoto, filed a libel claim on Apr. 19 against crypto podcaster Peter McCormack. The idea behind the claim is to reportedly prevent the podcaster from making additional “fraudulent claims” about Wright and his claims about him being the real Satoshi.

It has also been reported that Wright believes that these accusations are actually a way to hurt Bitcoin SV (BSV), as he states that its “massive on-chain scaling (...) represents an existential threat to the future of other cryptocurrencies”.

3. Binance, ShapeShift and Kraken delist Bitcoin SV after Craig Wright’s allegations

Binance Exchange announced on Apr. 15 that they would delist the currency from the exchange and cease trading on all trading pairs for Bitcoin SV on Apr. 22. The same day, Eric Voorhees—CEO of ShapeShift—tweeted that the company had decided to follow Binance’s move, and proceeded to delist within the following 48 hours. Kraken also decided to delist Bitcoin SV following a community poll made on Twitter on Apr. 15, in which 71% voted to delist. Kraken’s press release mentioned “behavior completely antithetical” on BSV’s side as the reason behind the delisting.

Bitcoin Cash (BCH) was also affected as Japanese exchange SBI Holdings announced on Apr. 16 they would delist the cryptocurrency this June and would not list Bitcoin SV. OKEx exchange, on the other hand, stated in a series of tweets that after a rigorous review, BSV did not meet their delisting criteria, and would not be delisted in the foreseeable future.

4. Binance Chain launches mainnet and announces date for the swap

An Apr. 18 announcement confirmed that Binance Chain had successfully deployed its genesis block and that the mainnet swap of its native token BNB would take place on Apr. 23. Until then, the Binance Chain Explorer and Web Wallet will be closed to public access and will only be made available to selected partners.

The statement also provided information regarding the conversion of ERC-20 BNB tokens to the native Binance Chain BNB (BEP2) coins, a process for which Binance will provide assistance. The statement announced that as all BNB tokens will be migrated to Binance Chain, the withdrawal of ERC-20 BNB tokens will not be supported after Apr. 23. Binance will also release more BEP2 coins as more users convert their ERC-20 BNB tokens to the BEP2 protocol, burning ERC-20 in order to keep the total supply across both networks constant.

5. Forbes releases its “Blockchain’s billion dollar babies” list

On Apr. 16, Forbes announced its “Blockchain’s billion dollar babies” list, in which the leading 50 companies that are actively exploring blockchain tech are featured. The company highlighted the financial record keeping Depository Trust & Clearing Corp (DTCC), as it represents “most of the world’s $48 trillion in securities”. Among the household names are U.S.-based crypto exchange Coinbase, Ripple, and mainstreams like Facebook, Amazon, Walmart, and more. Forbes also mentioned that global corporations are embracing blockchain tech to “speed up business processes, increase transparency and potentially save billions of dollars.

6. Reuters: venture capital crypto investments to reach an all-time high in 2019

An Apr. 17 report from Reuters shows that venture capital investment will reach new heights in 2019, likely trumping last year’s figures. Thus far, the industry has already raised $850 million in funding, coming from 13 investments. This, when contrasted to the $2.4 billion in funding that the industry received in 2018 from 117 investments, shows a great deal of optimism for venture capital investments in 2019.

Reuters also reported that investors are contributing larger sums in crypto, though some remain hesitant about being involved directly with cryptocurrency handling. This explains why only 13 investments have managed to raise almost $1 billion.

7. achieves nearly $3 billion in orders in first phase of IEO for native token

A blog post on Apr. 14 confirmed that the first phase of the POINTs sale and distribution saw $2.984 billion worth of orders placed, $350 million of which happened on the Apr. 13 sale. The sale is for POINTs, which will be redeemable for Gatechain Tokens (GT) in the future, when they are released. GT will enable users of Gate to pay for trading fees on the exchange.

The exchange has now entered into the second phase of the POINTs sale. GT will be released as a part of Gatechain, a blockchain ecosystem that is currently set for a Q4 2019 launch.

8. Wirecard announces partnership with Telegram’s TON

The German financial services provider announced on Apr. 17 that they are partnering with the development team behind Telegram’s blockchain ecosystem. According to the press release, the collaboration will see the development of digital financial products which include joint digital financial services, payments and a banking platform.

No further information about the products has been given as the press release states that information about them will be revealed as the date where these services become available approaches. Alexander Filatov, managing partner at TON Labs, was quoted as saying that they were partnering with “one of the world’s most dynamic and innovative financial technology companies to bring synergetic new generation fintech solutions to the market.”

9. Binance increases profits as Coinbase earns less than predicted

Binance exchange has reportedly registered a 66% profit increase during Q1 2019 in comparison to Q4 2018, bringing in $78M. 830,000 BNB were burned during the last quarterly BNB burn, which represents 20% of Binance’s net profits for the first quarter.

Coinbase registered profits of around 60% less than predicted, bringing in $520M during 2018, as opposed to the estimated $1.3B. Coinbase generated $923M in revenue during 2017, which makes last year’s half a billion dollar earnings 44% lower than the year before.

10. Japan to enforce tighter regulations on cold wallets

As per an Apr. 16 Reuters report, the Japanese Financial Services Agency (FSA) is looking to make Japanese crypto exchanges further tighten the security and internal oversight of their cold wallets. The FSA had already restricted the use of hot wallets in 2019, prompting exchanges to switch over to cold wallets.

The reason behind the tighter regulation is in case of possible oversight within Japanese crypto exchanges. Some of the 19 registered Japanese crypto exchanges—some of which are not operational yet—do not have safety protocols in place that involve the rotation of people in charge of the storage, a situation that increases the possibility of internal theft.

11. Binance quietly rewords repurchasing plan section on their BNB white paper

Binance silently reworded a section dedicated to the quarterly manipulations with BNB coin. The previous version of the white paper, which can be accessed through the Wayback Machine service, mentions a “repurchasing plan”, which was simply replaced by “the burn” on the newer version. The new version simply explains that every quarter, Binance Coin will be destroyed based on the trading volume on their platform. Both versions state that these quarterly manipulations would carry on until 50% of all Binance Coins were destroyed.

Changpeng Zhao, the CEO of Binance, stated that the rewording of the white paper doesn’t really change anything, and that it was only a measure designed to clarify that the exchange does not actually repurchase any BNB, and that it is simply a measure to reduce the number of tokens.

12. Forecast: US federal government to raise its blockchain spending by a 1,000% by 2022

According to an Apr. 18 forecast published by IDC Government Insights, the federal government of the US is expected to raise its blockchain spending to $123.5 million by 2022, an amount that, when compared to the $10.7 million spent in 2017, signifies an increase of over 1,000%.

A similar increase is forecasted for state and local governments—from $4.4 million in 2017 to $48.2 in 2022—while the spendings of federal civilian agencies and the Defense Department are forecasted to spend $80 million and $40 million respectively in 2022, quadrupling and doubling their figures from 2017. The research director of the IDC, Shawn McCarthy, explains that early spending will focus on supply chain and asset management solutions, whereas spending in later years will include mode identity management and complex financial transactions. Additionally, the IDC notes that blockchain will probably become a cornerstone technology for trade legislation, becoming a standard for authorized international trade and government procurement.

Final Thoughts

While the cryptocurrency market shows itself mostly in the green for this upcoming week, last week’s gains did manage to tip the scales. Despite the low profits from big exchanges, the forecasted increase in blockchain spending by both federal and state governments and the new heights that venture capital investments are expected to reach shine a light over the future of cryptocurrencies. Hopefully, the encouraging sale figures from and the partnership between Wirecard and TON will also be beneficial for the future of crypto.

We wish you a great week,
The Coin360 Editorial Team