Posted in MARKETS NEWS

Crypto Venture Firm 1confirmation Announces New $45 Million Fund

Venture capital firm 1confirmation is announcing a new, $45 million fund for investing in cryptocurrency startups.

Led by early Coinbase employee Nick Tomaino, the firm’s first fund, focused on seed rounds, amounted to $26 million.

“We wanted to start off relatively small, prove out the model and raise more capital if the model was working,” Tomaino told CoinDesk in an email. “The model is working well and we had strong support from our existing [limited partner] base to launch a larger second fund.”

He says he’s broadly optimistic about the crypto industry. In a blog post shared with CoinDesk in advance, Tomaino wrote:

“Today, the current total market value of crypto assets is ~$272B and investment/speculation is the only mainstream use case. We think in the next five years, that total market value will surpass $1T as the investment/speculation use case continues to grow and other mainstream use cases emerge.”

1confirmation has invested in a wide array of new companies in the industry, including BloXroute, Tendermint, OpenSea and Commonwealth. The firm invests in both startup equity and cryptocurrency tokens.

While Tomaino declined to detail participants in the new fund, he noted that it is “largely backed by our existing Fund I LPs.” When 1confirmation was first announced, limited partners included: Peter Thiel,  Marc Andreessen, Balaji Srinivasan, Brendan Eich, Runa Capital and Real Ventures, among others.

This larger fund will allow for the company to write larger checks while continuing to capitalize on being close to pioneers in the space, Tomaino told CoinDesk.

He wrote in an email:

“For Fund I, our focus was providing early stage capital for founders building infrastructure and middleware for the decentralized web. For Fund II, we’re continuing that focus with larger checks as a result of the larger fund (Fund II checks are generally between $1M and $2M, where Fund I checks were between $250K and $1M).”

In his blog post, Tomaino emphasizes the importance of not chasing the trend so much as investing in “focused, disciplined, mission-driven founders.” Further, he predicts that bitcoin will continue to be the market leader and that ethereum will follow close behind, particularly as the platform for decentralized finance.

Tomaino writes:

“While the story for ETH as a store of value is not as strong as the story for BTC as a store of value and a lot of Ethereum infrastructure challenges remain unsolved, we think that Ethereum as a platform for innovation is here to stay and ETH’s future as Internet money for open, inclusive financial products (aka DeFi) is bright.”

Posted in MARKETS NEWS

Dutch Central Bank: Crypto Firms to Be Regulated as of January 2020

The Dutch central bank has today revealed it will begin regulating firms that offer cryptocurrency-related services as of Jan. 10, 2020.

Reuters reported on Sept. 3 that De Nederlandsche Bank clarified that relevant firms in the sector must register with the institution if they wish to continue to operate.

The bank’s official statement reportedly reads:

“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”

Recent cryptocurrency developments in the Netherlands

As reported, Dutch ministers had urged the country’s government this July to regulate cryptocurrencies and certain cash payments due to money laundering concerns. 

In January, Dutch Minister of Finance, Wopke Hoekstra, received official advice from the Netherlands’ Authority for the Financial Markets and De Nederlandsche Bank that a licensing system should be introduced for cryptocurrency services.

The Netherlands does not recognize cryptocurrency as legal tender, although in 2018 a Dutch court ruled that Bitcoin (BTC) was a legitimate “transferable value” in a penalty payment case.

Posted in BİTCOİN MARKETS PRİCE ANALYSIS

Bitcoin Dominance Hits 70% as Keiser Warns Altcoins ‘Not Coming Back’

Bitcoin (BTC) now has the highest share of the overall cryptocurrency market since before its record-breaking $20,000 bull run in 2017. 

According to data from major monitoring resource CoinMarketCap, Bitcoin now accounts for 70.5% of the total cryptocurrency market cap as of Sept. 3. 

Bitcoin market cap hits pre-$20K high

That figure has not been seen since March 2017, and comes as BTC/USD makes gains at altcoins’ expense. 

As Cointelegraph reported, continued underperformance in cryptocurrencies other than Bitcoin has triggered warnings from traders and analysts alike. 

Among them are Peter Brandt and RT host Max Keiser, the latter again claiming this week that altcoins would never recover from this downturn. 

“Alts never coming back… Sorry,” he tweeted on Sept. 3, also referencing market cap statistics. Brandt reiterated similar warnings.

“When will altcoin junkies understand that $BTC is the crypto with real and lasting value,” wrote Brandt, who added:

“Altcoins are to Bitcoin what lead is to Gold.”  

Some sources had reported Bitcoin hitting the 70% mark as early as last week.

Market cap readings set highs across the board

Bitcoin itself delivered a sudden return to form late on Monday, having previously dropped to just $9,350. At press time Tuesday, BTC/USD was circling $10,360, bringing 24-hour gains to 6.2%.

Altcoins in the top twenty, however, mostly failed to achieve more than 4%, meaning they, in fact, lost value in Bitcoin terms. 

Some commentators voiced caution about placing faith in Bitcoin’s strength. Market cap, they argued, is a poor measure of performance, as it includes many altcoins which do not even have any trading volume. 

Earlier, Cointelegraph reported on the phenomenon of Realized Market Cap, a metric designed to solve those inconsistencies which has also set new records in recent weeks.

Posted in MARKETS NEWS OTHER

CommBank Develops Blockchain Market to Boost Biodiversity

Commonwealth Bank of Australia (CommBank) has co-developed a blockchain marketplace that it says could support sustainable development and reward landowners for protecting the environment.

Created in partnership with BioDiversity Solutions Australia (BDS), the prototype platform uses digital tokens, dubbed BioTokens, to facilitate trading of biodiversity credits for the New South Wales Government’s Biodiversity Offsets Scheme.

The scheme requires developers to obtain the credits to offset the impact of development. Biodiversity credits can be generated by landholders that set up biodiversity-protection schemes on their land on their land “in perpetuity,” according to an announcement from CommBank on Wednesday.

As such, there’s a need for a transparent market for the trading of the biodiversity credits between these parties, while others – such as environmental groups or government agencies – could purchase the credits as an investment, the bank says.

BioTokens can be programmed with complex rules to automate compliance and administration, according to Sophie Gilder, CommBank’s head of experimentation and commercialisation for blockchain, AI and emerging technology. Trades on the marketplace are also “transparent and real time,” she said.

Rod Barnaby, managing director at BioDiversity Solutions Australia, explained:

“Developing a digital marketplace is part of a broader project we have been working on to help stakeholders participate in the NSW Biodiversity Offset Scheme. Our vision was to help facilitate the protection of precious environmental ecosytems, while also creating an alternative source of income for landowners and rewarding them for preserving biodiversity on their land.”

So far, no “transparent” marketplace exists to allow developers and landholders to trade biodiversity credits, according to the announcement.

Barnaby indicated that BDS and CommBank are now seeking partners to take the platform toward a commercial launch, as well as examining other use cases for the tokenized asset technology.

“Our vision is that by digitising biodiversity credits and building a marketplace where they can be bought and sold, we can invest in and protect our natural environments,” Gilder said.

Koala in Sydney image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted in BİTCOİN MARKETS PRİCE ANALYSIS

Bitcoin Selloff Stalls at Historical Price Support Near $10K

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  • Bitcoin’s defense of the 100-day moving average and a bullish divergence of an hourly chart indicator suggest scope for a minor price bounce to $10,300
  • Bitcoin will remain in the hunt for a drop to $9,467 (Aug. 13 low), as long as the rising wedge breakdown seen on the 4-hour chart remains valid.
  • A UTC close above $10,956 would shift risk in favor of a rally to $11,850-$12,000. A weekly close above $12,000 is needed to confirm bullish revival.

Bitcoin (BTC) sellers are again struggling to force a sustained break below a widely-followed support level, but the outlook would turn bullish only above $10,956.

The premier cryptocurrency by market value fell by $600 in the Asian trading hours on Wednesday, confirming a rising wedge breakdown on the intraday charts.

The bearish reversal pattern opened the doors for a retest of the Aug. 15 low of $9,467, as discussedyesterday. So far, however, that target has remained elusive and the dips below the 100-day moving average (MA), currently at $9,900, have been short-lived.

It’s worth noting that the long-term MA worked as strong support earlier this month. The cryptocurrency ran into bids below the 100-day MA on Aug. 15 and closed (UTC) that day with gains above $10,300. The average was again defended on the following day and the subsequent price bounce ended up hitting highs above $10,950 on Aug. 20.

So, if the 100-day MA continues to hold ground over the next few hours, chart-driven buying could lead to a price bounce.

As of writing, BTC is changing hands at $9,970 on Bitstamp, representing a 1.7-percent loss on the day.

Daily and hourly charts

The lower wick attached to today’s candle (above left) represents a failure on the part of the bears to keep the cryptocurrency below the 100-day MA. The average also proved a tough nut to crack on Wednesday.

The repeated defense of the key MA, coupled with the bullish divergence (higher lows) of the hourly chart relative strength index (above right) indicates scope for a rise to $10,300 over the next few hours.

The path of least resistance, however, will remain to the downside as long as prices are held below $10,956 – the bearish lower high created on Aug. 20.

The bulls will likely have a tough time forcing a break above $10,956, as the daily chart indicators are biased bearish. For instance, the RSI is holding below 50 and the moving average convergence divergence (MACD) histogram is printing negative values.

Further, the 5- and 10-week moving averages have produced a bearish crossover, as discussed earlier this week.

The fact that last week’s bounce from the 100-day MA ended up charting a bearish lower high indicates a weakening of bullish sentiment.

4-hour chart

The case for a drop to the Aug. 15 low of $9,467 put forward by the rising wedge breakdown will remain valid as long as prices remain below $10,807 – the high of the candle confirming the breakdown.

Daily line chart

The line chart of daily closing prices helps investors look through the noise created by daily highs and lows.

If prices close above $10,000 today and end up rising above $10,927 (Aug. 16 close) in the next day or two, then a double-bottom bullish breakout would be confirmed. That would open the doors to $11,850.

Weekly chart

BTC has failed at least four times in the last eight weeks to close (Sunday, UTC) above $12,000. So, a weekly close above that level is needed to confirm a complete bullish revival.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.