Crypto News Recap - Fidelity and the Next Best Thing to a Bitcoin ETF - August 21- August 28 2020

Transcript

[Music] hi everyone thanks for tuning in to this week's news recap first headline fidelity bets on bitcoin with new fund forbes reports that fidelity president and head of consulting peter jubber filed paperwork wednesday for a new bitcoin dedicated fund with a minimum investment of one hundred thousand dollars likely aimed at institutional and accredited investors called the wise origin bitcoin index fund it does not yet have investors and is unclear what the relationship is between fidelity digital asset in an organization called wise origin funds quality brokerage services llc is to be the fund's custodian fidelity's intellectual

property vice president has filed a trademark application for the name wise origin funds frank chaparro of the block wrote that a bitcoin fund by fidelity could be the next best thing to a bitcoin etf because although the fund will not be available to retail investors it could potentially become available to investor advisors to sell to their own clients next headline shifting approach to inflation by fed could bolster bitcoin a new policy unveiled thursday by federal reserve chairman jerome powell would lead inflation rates and thus the cost of borrowing to stay low for longer the change would allow inflation to run higher than usual for certain periods

to target an average inflation rate of two percent over time bitcoiners such as the winklevoss twins pointed to the change to bolster their contention that the us dollar is an increasingly unreliable store of value and coming inflation will devalue the dollar further allowing bitcoin with its cap supply to potentially overtake gold victorially in value after powell outlined the fed's new tolerance for higher inflation but so far there has been an otherwise muted reaction to powell's comments analysts previously speculated that powell's speech could help boost bitcoin and lead to further drops in the power of the dollar but the long-term effect of the new policy remains to be seen

next headline sec expands the definition credit investor the s the securities and exchange commission revised the definition of accredited investor which determines who is able to participate in private investments such as token sales now not only are income or net worth acceptable qualifications but so are certain designations or credentials based on professional knowledge or certifications for instance holders of series 7 65 and 82 licenses which have to do with private security sales and investment advising are now included however because this would not significantly increase the pool of accredited investors response to the news was mixed athena blockchain general counsel drew

him tweeted that this is not meaningful at least not yet cardozo school of law professor and open law co-founder aaron wright tweeted however that the news was quote a big step in the right direction setting up a framework for technical accreditation in the future sec commissioner hester purse issued a statement calling for even greater expansion to the definition she said quote why shouldn't mom and pop retail investors be allowed to invest in private offerings why should i as a regulator decide what other americans do with their money next headline ftx acquires blockfolio for 150 million dollars crypto derivatives exchange ftx has

acquired popular crypto data app block folio in a 150 million dollar attempt to expand its retail footprint the deal came out of initial discussions between the companies about how they might collaborate and is one of the largest acquisitions in crypto this year blockfolio which has 6 million users and receives 150 million impressions a month will receive a mix of equity ftx's native token and cash it remains unclear how blockfolio will fit into the ftx ecosystem although the firms are working on a retail trading feature and the deal is seen as akin to binance acquisition of coin market cap and that coin market cap and block folio could bring in a lot of traffic that then funnels down to their respective exchange partners

next headline dcg to invest 100 million dollars in bitcoin mining digital currency group revealed a new mining subsidiary called foundry it will invest 100 million dollars in mining bitcoin and other cryptocurrencies in north america foundry has been operating its own mining operations since 2019 plus offering crypto startups mining equipment and financing and it also plans to move into staking dcg founder and ceo barry silbert hopes to increase the us's share of global bitcoin production especially compared to that of china as there are currently few significant mining operations in north america however a number of failed efforts here previously

could indicate it that it may be a hard road ahead the firm expects dcg's network deep experience in crypto and support from federal and local officials who may also not want to seed production's production of bitcoin to china to help it succeed next headline how will copycat projects fare in d5 the yield farming craze has raised a question if it's easy to fork code and launch a project that promises advantages over the original and if it's so easy for users to move from project to project chasing the highest yield then what will survive the blocks stephen chang notes that august saw a number of copycat projects that piggybacked off other projects code to launch their own tokens along with

catchy memes and enticing yield farming schemes y-irn and yam are great examples of this and in the area of dexes or automated market makers moon swap and sushi swap are near clones of current heavyweight uniswap munu swap claims to improve on uniswap by preventing arbitrage ores from taking all the slippage and instead keeping most of it in the pool to redistribute to liquidity providers meanwhile sushi swap has a governance token sushi part of which will be set aside to fund development which at uniswap is currently funded by vcs and stephen's conclusion is quote at the end of the day like the mania of 2017 these often uninspired

forks of other forks will attract liquidity into the ecosystem and as a result of a sector flushed with cash we may see some truly useful projects flourish next headline fund bids arthur hayes weighs in on yield farming arthur hayes of bitmax or what is now called 100x group is always entertaining to read and his latest missive on his adventures in d5 as well as his breakdown of what drives demand in supply and crypto credit is no exception he begins quote i lack access to nightclubs and most other forms of revelry therefore i decided to become a crypto peasant after describing the main players in the crypto ecosystem

miners speculators borrowers lenders exchanges etc he talks about how defy has decentralized all of it and then says that he is enjoying yield farming meme tokens however like any smart investor in crypto he fully expects to lose all his money quote in my head i like to believe i can read market sentiment and get out at the top of the bull market but in reality like most other traders i will buy high hold hold hold and sell well after the top all right well thanks for tuning in to learn more about joe and consensus's acquisition of quorum be sure to check out the links in the show notes of this episode don't forget you can now watch video recordings of the show on the unchained youtube channel go to youtube.com c unchained podcast

and subscribe today unconfirmed is produced by me laura shin with help from anthony yoon daniel ness and the team at clk transcription thanks for listening [Music] you