Crush Crypto Weekly – July 29, 2017 - Crush Crypto

Crush Crypto Weekly – July 29, 2017

Market Insights

Bitcoin

Bitcoin price dropped by 2% from last week to $2,724. After the scaling debate finally settled the week before, a group of users claimed that they will split and create their own version of Bitcoin, called Bitcoin Cash, on August 1.

Some exchanges support Bitcoin Cash and some don’t. Therefore, if you have Bitcoin on exchanges, you should check with them and see what is going to happen to your Bitcoin on August 1.

I don’t think Bitcoin Cash is going to affect the adoption of Segwit. After all, if both chains receive a wide support, users would be confused as to which is the “real” Bitcoin. That is certainly going to be bad for Bitcoin price and no one wants to see that.

Ether

Ether price dropped by 15% from last week to $195. The biggest news this week is the report issued by the SEC about the classification of certain tokens as securities.

Personally, I don’t see this report containing much new information that we didn’t know already. In the US, the criteria that is used to determine whether a transaction is an investment contract is based on what’s called the “Howey Test”.

Most ICOs restrict US citizens from participating in crowdsale because they know that the token would not be able to pass the Howey test. I think the SEC report has more of an impact in the secondary market, i.e. where the tokens are traded on exchanges.

For your information, the Howey Test looks at 4 criteria. If a token crowdsale satisfies all 4 of the statements below, it is considered as an investment.

  1. It is an investment of money.
  2. There is an expectation of profits from the investment.
  3. The investment of money is in a common enterprise.
  4. Any profit comes from the efforts of a promoter or third party.
Bitcoin Ethereum Price Chart

Developments in the Cryptocurrency World

SEC issues investigative report concluding DAO tokens, a digital asset, were securities: https://www.sec.gov/news/press-release/2017-131

BTC-E was brought down by law enforcement: https://www.theverge.com/2017/7/29/16060344/btce-bitcoin-exchange-takedown-mt-gox-theft-law-enforcement

Bitcoin Cash development: https://www.coindesk.com/coindesk-explainer-bitcoin-cash-forking-blockchain/

Vitalik’s blog post about the Bitcoin chain split: http://vitalik.ca/general/2017/07/27/metcalfe.html

Liqui hacked/breached: https://themerkle.com/liqui-io-users-report-hacked-funds-and-blocked-withdrawals/

Delaware Governor signs blockchain bill into law: https://www.coindesk.com/delaware-governor-signs-blockchain-legislation-law/

LedgerX gets U.S. approval for derivatives on digital currencies: http://www.nasdaq.com/article/ledgerx-gets-us-approval-for-derivatives-on-digital-currencies-20170724-01338


Articles From Crush Crypto

Analysis of Decentraland ICO: https://crushcrypto.com/analysis-of-decentraland/

​Analysis of Rex ICO: https://crushcrypto.com/analysis-of-rex-real-estate/

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