The cryptocurrency market traded weaker overnight during Asian trading hours but has since pared back the vast majority of early losses. As such, in early European trade, Bitcoin is trading down just over 1%, Ethereum is flat and XRP is down 1.5%. The Bitcoin futures curve remains in contango, albeit the premium has dwindled somewhat, while the Ethereum Sep-Perp spread has also narrowed to around $4 vs being above $10 during the recent rally. In terms of decentralized finance (DeFi) and leveraged market, the amount of ETH coins locked in the credit ecosystem of MakerDAO has held steady at around 1.54%. However, as per the overview of the collateralized debt position (CDP) monitor, the lock function, which allows users to add more collateral to their CDP is above the recent daily average. In general, the lock function is used when the price of ETH drops and you are below your personal collateral threshold or your CDP is approaching liquidation.
Looking elsewhere, EOS has underperformed somewhat, down 3%, which is more than likely to do with profit taking following a slew of releases last week which took place amid heightened expectations of big news from the EOS community. Profit taking has been such that over the past 7 days, EOS coin is down nearly 20%, almost double the correction that was endured by its peers. Bitcoin SV (BSV) continues to outperform, up over 3% at $227 vs Bitcoin Cash (BCH) at $404. As such, the decoupling that took place earlier in the year is continuing to be reversed. The reversal in sentiment comes amid the most recent comments by Ethereum’s Buterin who, when speaking with YouTuber Hardcore Crypto, left little room for interpretation regarding his thoughts on BSV. As reported by YahooFinance, the Ethereum co-founder also gave his thoughts on decentralized exchanges and the worryingly centralized accumulation of power by Binance. Specifically, he told Hardcore Crypto: “Obviously BSV is a complete scam, but the delisting from Binance – that was interesting. There’s arguments in favour of it, but then there’s also an argument that this is a centralized exchange that’s wielding a lot of power.”
In other news, it was reported that the US Securities and Exchange Commission (SEC) is suing Kik for allegedly running an unregistered securities sale when it launched an initial coin offering (ICO) for its KIN token in 2017. The SEC pointed out that Kik violated Section 5 of the Securities Act of 1933, which requires offerings to be registered. “By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of information to which they were legally entitled, and prevented investors from making informed investment decisions,” said Steven Peikin, co-director of the SEC’s Division of Enforcement.
Elsewhere, according to the think tank Avenir Suisse, Switzerland’s national bank (SNB) should work with large industry players to develop a Swiss franc token. Specifically, citing CoinTelegraph, Avenir Suisse’s report claims that if Switzerland became a dominant player in trading tokenized securities, its relatively small capital market could expand and attract more domestic and international players. In addition, it claims wealth managers would get the chance to “exploit new business models and client segments.”
Thank you for reading,
The BeQuant’s Analytics team