As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.
CRYPTO ASSETS STUCK OR MISSING AFTER EXCHANGE FOUNDER’S DEATH: Canadian cryptocurrency exchange QuadrigaCX said roughly $136M worth of customer holdings are trapped in an electronic vault as the company’s founder and chief executive officer Gerald Cotten died without sharing the password, the Wall Street Journal reported Thursday. However, two independent researchers said transaction records associated with the exchange, which has filed for bankruptcy protection, suggest the funds may be gone as Quadriga seemingly transferred the holdings to other exchanges.
CRYPTO MAY FACE NEW ROUND OF PAIN: Fundstrat Global Advisors strategist Robert Sluymer said cryptocurrencies are set to retest their fourth quarter lows in a weak technical position and smaller coins are most at risk, Bloomberg reported Wednesday. “The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Sluymer said, adding Fundstrat’s advance/decline indicator “is at risk of breaking to new lows…A break below the fourth-quarter lows at $3,100 would imply a decline to $2,270, while a move above $4,200 is needed to signal Bitcoin is beginning to improve,” he said.
TWITTER CEO CALLS BITCOIN A “CURRENCY”: Twitter (TWTR) CEO Jack Dorsey said the only cryptocurrency he holds is bitcoin and he believes it is the future of money, Business Insider reported Tuesday. "I don't see it as an investment," he tweeted, adding it's a "currency.” “Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals. And it's a great brand,” he said, noting bitcoin will "probably be the native currency."
MLG, MEXICO MUNICIPALITY SIGN MOU: In a Monday announcement, Overstock (OSTK) said that its blockchain-meets-property rights subsidiary, Medici Land Governance, has signed a memorandum of understanding with the municipality of Tulum in Quintana Roo, Mexico to develop a digital land records platform. According to the terms of the MOU, MLG and Tulum officials will work together to collect real property ownership information for a defined area of Tulum Municipality to protect the land rights of its citizens, resulting in a mass issuance of certificates of title to land and related processes.
RIOT BLOCKCHAIN NAMES CEO: Riot Blockchain (RIOT) announced Tuesday that Jeff McGonegal was named CEO, replacing Chris Ensey, who joined the company in January 2018 as chief operating officer and had been appointed interim CEO in September 2018. McGonegal had previously served as chief financial officer until April 2018 and had been assisting Riot Blockchain in a consulting role. In addition, Jeffrey Vormittag, COO of Riot Blockchain Canada, will also be departing the company.
CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock, DPW Holdings (DPW), Kodak (KODK), Ideanomics (IDEX), Riot Blockchain, Pareteum (TEUM) and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.
PRICE ACTION: As of time of writing, bitcoin dropped roughly 0.5% this week to $3,411 in U.S. dollars, according to TradeBlock.
Keywords: bitcoin, ethereum, crypto, cryptocurrency, cryptocurrencies, token, stocks, blockchain, stablecoin, regulation