Daily: Bitmain News, Canaan Creative IPO, Bakkt App
DAILY
October 29  |  3 min read

Trick or Treat

BeQuant Analytics, a daily cryptocurrency market analysis contributor

Like a spooky ghost that comes out on Halloween, the volatility came and went, with the trading range also returning to pre-China pump levels. A handful of names maintained their China-blockchain pushes but for the vast majority of the market, and in particular the larger caps, the hype was more or less non-existent. Nonetheless, Huang Qifan, vice chairman of the China Center for International Economic Exchanges (CCIEE), confidently believes that China’s central bank will win the race for the first central bank with a digital currency (CBDC).

China’s state-backed tech workgroup has released its fourteenth crypto rankings report, with Bitcoin (BTC) ranked 11th and EOS (EOS) retaining the top spot, followed by TRON (TRX) and Ethereum (ETH). XRP is up from 30th to 20th-ranked asset.

Jihan Wu, a former CEO who controls 20.5% of mining giant Bitmain, took over from Micree Zhan Ketuan as the legal representative of Bitmain. In an internal email, which was sent to all the company's employees, Wu states that Zhan has been "dismissed" from all operating positions (effective immediately). As a guide, Jihan Wu is a prominent supporter of BCH, which at the time of writing was trading up around 10%, outperforming the rest of the majors.

Interestingly, even as reference rates for lending and borrowing USDC remain near 3-month lows, the contango delta for Ethereum vs Dec’19 contract widened to $3 and $5 vs Mar’20 contracts. Similarly, Bitcoin’s contango delta vs Dec’19 is over $100. On a macro theme, according to local press reports, the Central Bank of Argentina (BCRA) has decided to reduce the amount of dollars a saver can purchase each month from $10,000 to just $200. The reduced dollar access would last for two months. The move comes as Argentina's Mauricio Macri conceded defeat in the country's presidential elections, setting up a return to power for the populist Peronist party. Ironically, it was a peronist government that blew up the IMF back in 2001, when Argentina defaulted on about $130 billion in debt.

In terms of news flow, Chinese cryptocurrency mining giant Canaan Creative has filed to be a publicly-traded company (IPO) in the United States. According to the filing, the company is looking to raise $400mln and plans to be listed on the Nasdaq under the ticker CAN.

Elsewhere, Bakkt plans to launch a consumer-facing app to help retail customers transact with cryptocurrencies. In a blog post, Bakkt chief product officer Mike Blandina wrote that the company was working on developing an app to let consumers use digital assets when purchasing goods from merchants. When ICE first announced Bakkt in August 2018, the company said it was partnering with Starbucks and other companies to provide a retail experience, but few details of this part of the vision have been shared since. Monday’s announcement said Starbucks will be Bakkt’s first launch partner when the app goes live sometime in the first half of 2020.

Thank you for reading,

The BeQuant’s Analytics team