Ethereum Price: $234.50
Ethereum Price (BTC): 0.03052 BTC
Market Cap: $24.89B
ETH Network Dominance*: 73.47%
7 Day Candle**: $263.25 / $263.65 / $227.34 / $234.50
️ Nick’s Market Summary
Following on from the KIN foundation’s DefendCrypto.org campaign, which raised $5M from their parent company to fight for improved token regulation, the SEC announced their decision to sue the ICO issuer. The SEC allege that KIN conducted an illegal $100M securities offering of digital tokens in order to escape future insolvency. The announcement was likely the cause for Ethereum’s swift drop from $263.65 to $235.56 at the start of the week and KIN’s crash to its all time low of a microscopic $0.000023.
Regulatory news typically has disastrous effects on the price of ETH and crypto more broadly, however the impact of this has increasingly diminished over time as investors begin to understand that the ICO use-case is but a fraction of the value of Ethereum.
In other news, further details were released about Facebook’s cryptocurrency project with reports that the blockchain will operate 100 validators – about 5 times as many as the $6bn market cap blockchain, EOS (although drastically less than the many thousands for Ethereum and Bitcoin). It’s also reported that there will be a significant annual fee for running a validator (in the millions), and presumably the software will be closed source in some regard. The company will also give their staff the option to be paid in Facebook’s coin and as mentioned before, it’s likely we will see the currency being traded on the Coinbase and Gemini exchanges among others.
The importance of this cannot be overstated. Every user onboarded to Facebook’s token is another user onboarded to the cryptocurrency ecosystem. As interoperability between blockchains continues to improve, the potential for 2 billion people to have frictionless access to the utility of Ethereum becomes possible. However more importantly in the short-term, the total addressable market for Ethereum-based business models will rapidly increase as a result of Facebook’s venture, leading to increased development and interest from outside.
It’s not all positive though; we don’t yet know what restrictions these 100 validators will put in place or just how open the currency will be across countries. More details will become clear on June 18th with the expected release of the cryptocurrency’s whitepaper.
– Nick, Owner EthereumPrice.org
⚕️ Walmart’s Next Step with Blockchain
Global retail giant, Walmart, has joined MediLedger blockchain consortium in building a blockchain for tracking the provenance of pharmaceuticals.
The focus of MediLedger, which uses an enterprise version of the Ethereum blockchain, is to create an open and decentralized, interoperable digitalized network to track and verify prescription drugs.
This is not Walmart’s first dance with blockchain. In September 2018, working alongside IBM, it announced that all suppliers of green leafy vegetables had to upload their data onto blockchain by September 2019 following a severe E. coli outbreak.
The latest project with MediLedger is mandated to be complete and presented to congress by 2023.
Is Justin Sun and Three Hours Enough To Sway Buffett Over Cryptocurrency?
Many crypto leaders have yearned for the opportunity to commune with business genius Warren Buffett, a well-documented cryptocurrency skeptic, to share with him the many merits of cryptocurrencies. Such a privilege has been bought by a relative newcomer to the industry in the form of 28-year-old Justin Sun, founder of cryptocurrency platform Tron.
Sun was the highest bidder in Buffet’s annual charity auction where the winning bid (a meagre $4.57M) is afforded a three-hour lunch date with the mogul to benefit Glide, a San Francisco charity that fights homelessness and addiction.
An additional benefit to the prize is that Sun can take 7 guests along with him. The question on many people’s lips is who will Sun invite and are they going to be the right combination of expertise to be able to redirect Buffett’s opinion, even slightly, on the value of cryptocurrency. Surely names like Vitalik Buterin, Erik Voorhees, Andreas Antonopolous and Barry Silbert should be on the invite list if Sun hopes make a well-rounded, educated impact on Buffets current stance which is almost all negative:
“It’s a gambling device…there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it,”. And as for investing in Bitcoin, Buffett said, “It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.”
Sun, 60 years Buffett’s junior, has sent an open letter to the cryptocurrency community saying that Buffet had sometimes got it wrong in the past with the failure to see the potential of the likes of Amazon, Alphabet, and Apple and Sun intends to show that it is the same with cryptocurrency.
Sun has been heavily criticized for a multitude of reasons, ranging from the plagiarism of the Tron whitepaper (much of the English version was literally copy and pasted) to his retracting of a Tesla giveaway shortly after announcing its winner. Will such a person, given a three-hour window, really be capable of changing the mind of one of the most prolific institutional investors of all time?
* calculated as: (ETH Market Cap / Ethereum Network Market Cap)
** open / high / low / close