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Facebook Stablecoin, $40M Exchange Hack, CFTC Futures and Blockchain Week Hits NYC!


Ethereum Stats

Ethereum Price: $193.74
Ethereum Price (BTC): 0.02613 BTC
Market Cap: $20.55B
ETH Network Dominance*: 71.98%
7 Day Candle**: $164.10 / $205.53 / $161.35 / $186.89

Cryptocurrency markets climbed from $180B to a high of $225B last week following a dramatic mix of euphoria and dread. Speculation surrounding Facebook’s cryptocurrency offering ran wild as news of Binance’s $40M exchange hack came to light just days after the New York State General Attorney announced an investigation into possible fraud at the Bitfinex exchange and spreading fear that its multi-billion dollar stablecoin would imminently collapse. So far, it has not.

Blockchain week also started in earnest on the 6th of May and, in traditional style, papered over any concern that the markets were facing difficulties – springing prices into action with ETH initially leading the charge. Blockchain week, which consists of a collection of events and is headlined by Coindesk’s Consensus, regularly attracts dozens of high profile speakers both in and out of crypto as well as new product launches and developer conferences.

Consensus, which kicked off today (Monday 13th May), will attract the most attention, with Fidelity Investments CEO, Abigail Johnson, expected to confirm specifics about their plans to introduce cryptocurrency trading.

Nick, Owner

♎ Facebook’s Project Libra

Project Libra is a secret venture that is being developed by Facebook to build a cryptocurrency-based payment system.

According to a report by Bloomberg, the social network intends to launch a Stablecoin that will facilitate peer-to-peer payments and can be used to spend on Facebook’s messaging network which includes WhatsApp. Conveniently, Facebook announced on May 8th that they will be rolling back a ban on cryptocurrency advertising on their platform.

In addition to the cryptocurrency project, which is rumored to be launching in India later in 2019, Facebook is also working on a virtual checkout to allow its users to spend on other sites. A reward system will be put in place to earn fractions of coins for watching adverts, engaging with content, and purchasing online – a concept which has already gained traction in the Brave bowser which is powered by the Ethereum-based BAT token.

According to Mike Novogratz, high-profile crypto investor and commentator, Facebook’s payment service is going to be a ‘big, big deal’, increasing the credibility of cryptocurrency in the marketplace.

‍⚖️ CFTC Alludes to Ethereum-Based Futures Contract

Ethereum has experienced a buoyant run over the last 2 weeks with attention being drawn to it by the likes of Elon Musk, Microsoft Azure, and now seemingly by the futures regulators,

Ethereum climbed nearly 30% last week following an official insider of the U.S. Commodity Futures Trading Commission (CFTC) alluding to the idea that the commission was planning to approve an Ethereum-based, cash-settled futures contract.

“I think we can get comfortable with an ether derivative being under our jurisdiction. If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be self-certified by us.”

This statement helped push a positive tide of buying sentiment as traders may have understood the CFTC statement to be an indication of institutional investment.

Binance Hack The 6th Largest As $40 Million Is Stolen

Binance has experienced the 6th largest hack in crypto history. The hackers managed to extract 7000BTC (roughly $40M at the time) from the exchange. The hackers were able to breach the exchange’s security without being detected, syphoning funds from the company’s “hot wallet”.

According to Larry Cermak, Head Analyst at The Block and ex-researcher at Diar, the security breach was linked to Binance’s lack of SegWit implementation although details are still not clear. At a time of soaring prices, the hack reiterates the crypto-adage “not your keys, not your coins” – highlighting the need for users to secure significant sums in their own private wallets and not with 3rd parties.

Binance has since stated that they would “significantly revamp” their security measures, procedures, and practices in response to the attack. With the CEO Changpeng Zhao writing in a blog post that Binance will make “significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident.”

On a positive note, according to analysts it estimated it will take Binance just 47 days to recoup completely, and the event seemingly did nothing to deter investors from the more recent bull run.

* calculated as: (ETH Market Cap / Ethereum Network Market Cap) * 100
** open / high / low / close

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Nick Founder