A strategic shift is in the works at ConsenSys, the sprawling venture studio dedicated to building ethereum-based businesses and products.
Latest Ethereum News
There are three main pieces of infrastructure that supports the Ethereum Ecosystem: Truffle, Infura and MetaMask. Truffle is a “A world class development environment, testing framework and asset pipeline for blockchains using the Ethereum Virtual Machine (EVM), aiming to make life as a developer easier” while Infura is an “API and developer tools providing the necessary infrastructure and scaling capabilities for dApps”.
On the other hand, MetaMask is an Ether and ERC-20 wallet that runs on Infura. Aside from securing your coins private keys, it also acts a bridge for dApp exploration right off your browser. It also allows users to run dApps without the need of downloading the whole Ethereum full node.
Market cap doesn’t reflect activity. Decentralized networks are growing.
— Joseph Lubin (@ethereumJoseph) December 1, 2018
Now, the exponential growth—and underlying demand is the main reason why Joseph Lubin is convinced that Blockchain is more than a market but a movement. Infura alone has had more than 10 billion API request. MetaMask has more than 10 million downloads and Truffle–which is used by ShapeShift, Aragon and others—and MetaMask has one million downloads.
That’s not all, other metrics that show increasing base activity despite free falling ETH prices includes the number of active ETH addresses—exceeding 48 million. At the same time governments are positive on the chain with Austria via Oesterreichische Kontrollbank (OeKB) issuing $1.35 billion worth of federal bonds back in September.
Blockchains are solving real-world problems. Governments get it.
-Israel’s encrypted messaging system
-Estonia’s electronic healthcare record trials
-Dubai’s 2020 initiative
-South Africa Reserve Bank’s @goquorum trial
-Japan’s e-voting system
-Zug @uport_me IDs + crypto ATMs
— Joseph Lubin (@ethereumJoseph) December 1, 2018
ETH/USD Price Analysis
There are hints of support but at $12 away from $100, we are far from convinced that there is a shift of momentum and bulls are back in contention. At spot prices, ETH/USD is up 2.4 percent in the last week and down two percent from yesterday’s close.
Still, ETH/USD is trending in shaky grounds and how prices react at $100 could be shaping for ETH in the short to medium term. Ideally, we would like to see rallies above $130 after a 92 percent drop from 2018 peaks.
Of course, after 11 months of steady declines that have seen ETH prices drop more than 90 percent from Jan peaks, the path of least resistance is southwards. This means ETH/USD is bearish and from the chart volatility is low but nonetheless, prices are trending within a bear breakout pattern following steep declines of Nov 19.
Volumes: Stable but Bearish
Notably, in our daily chart is Nov 25 bull pin bar. While it did print as a bull in an otherwise steep decline shoring prices and preventing a devastating crash below $100, the bar was backed by above average volumes—1.179 million versus 620k. And even after that ETH/USD prices are still oscillating within Nov 25 high low.
Candlestick Formation: Accumulation/Distribution, Bear Breakout Pattern
Because of Nov 19 high-volume, bear bar breaking below $160—the lower limit of support line, ETH/USD is trading within a bear breakout pattern. Now, because of the past seven days stability, ETH could either be in a distribution or accumulation phase depending on breakout direction. Rallies above $130 could be the latter while discouraging drops below $100 shall be a distribution and bear trend continuation.
Trading ETH/USD is simple. Bears are in charge. But, convincing breaks above $130 at the back of strong volumes shall usher in the next wave of bull pressure aiming at $160, $250 and even $400. If not and there is distribution further exerting pressure on ETH leading to price collapse below $100, then we could see drops re-testing $40 by end year.
All Charts courtesy of Trading View.
This is not Investment Advice. Do your Own Research.
The post Ethereum Price Analysis: ETH/USD Delicate at $100, Price may Drop to $1 or Snap Back to $250 appeared first on Ethereum World News.
Ethereum blockchain startup and incubator ConsenSys plans to streamline and toughen its business style amid a competitive blockchain space.
Major Ethereum (ETH) blockchain startup and incubator ConsenSys plans to streamline and toughen its business style amid an increasingly “crowded” competitive blockchain space. The shift in strategy was reported by online tech journal Breaker on Dec. 3.
Breaker cites a letter to staff from ConsenSys CEO and Ethereum co-founder Joseph Lubin, reportedly sent late last Friday night, which outlines a new phase in the Brooklyn-headquartered company’s work. As per the letter, ConsenSys — which employed over 1,100 employees as of February 2018, across 29 countries — is entering what Lubin calls “ConsenSys 2.0.”
This, according to Breaker, represents a more efficiency and revenue-driven approach company-wide, with ConsenSys Ventures — its investment arm — set to become closer to a “traditional startup accelerator.” Lubin’s letter reportedly told staff that:
“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe […] to ‘succeed wildly’ […] we must recognize that what got us here will probably not get us there, wherever ‘there’ is.”
In an interview with Breaker on Nov. 30, Lubin clarified that ConsenSys’ leadership will “get a lot more rigorous in terms of milestones and timetables, [even if that entails] dissolving projects if we’ve come to the conclusion that our earlier assumptions were incorrect.”
Projects under ConsenSys’ wing, the letter has reportedly outlined, will be judged by three broad metrics: revenue (or return on investment, even if based on projected future value), benefit to the Ethereum ecosystem, and social good.
While the company plans to reassign staff from shuttered projects to other initiatives, Lubin reportedly “did not rule out layoffs” in his interview with Breaker.
Part of the “lean and gritty” mentality extends to a parsimonious approach to staff expenses, with a dedicated team for cutting travel costs and a proprietary mechanism in the works for the firm to compare prices across hotels.
Lubin told Breaker that even while the projects under its oversight remain “agile,” the company as a whole has become unwieldy. While stressing the continuity in the company’s vision, he noted that ConsenSys 2.0 would entail “focusing […] [and] adding rigor [and] accountability” in the midst of what he called an industry-wide price “contraction.”
As reported last month, decentralized social networking platform Steemit is laying off more than 70 percent of its staff in the wake of the recent crypto market crash, as well as beginning a structural reorganization.
Founded in 2014, Tether was “the first” blockchain-powered platform that allows for the tokenization of fiat-backed cryptocurrencies.
In June, after the publication of a study conducted by analysts from the University of Texas, USDT fell under suspicion of Bitcoin (BTC) price manipulation in 2017, when the BTC price surged to an all-time high of $20,000. The paper claims that “purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices.”
While many cryptocurrency enthusiasts are convinced Tether is lying about its backing assets, Lubin is unconvinced of manipulation accusations against the token and the company behind it. He said that “based on our analysis, which involves just talking to a bunch of people in the space, we do believe that [USDT] are backed 1:1 by U.S. dollars in bank accounts” although it is “still not 100 percent solid in terms of a story, from my perspective.” He added:
“…with respect to market manipulations, I’m not sure that market manipulations are related to Tether directly, if they do exist. It has been an unregulated market set of exchanges that enable big players to do what they want to do […] Ideally we’ll get a little better regulation of those centralized exchanges at least.”
In June, law firm Freeh Sporkin & Sullivan LLP conducted an unofficial audit of Tether’s accounts, where it was discovered that USDT did indeed have enough funds to back each token 1:1 with U.S. dollars. However, the firm noted that it is, “not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles.”
Cryptocurrency markets have rebounded a little today following a week of heavy losses. Those in the industry are unfazed though as exchange giants such as Coinbase continue to grow at a staggering pace.
At an interview at the Bloomberg Players Technology Summit in San Francisco Coinbase CEO Brian Armstrong said that the exchange was signing up 50,000 new users last year. His comments during the interview were still extremely positive in an environment where market sentiment has been bearish all year.
As one of the world’s leading crypto exchanges with 25 million customers Coinbase can be considered a good indicator of the overall condition of the industry and its future. Looking at the exponential growth that the company has had over the past few years is a testament to that. Armstrong elaborated stating;
“This technology is going through a series of bubbles and corrections. So we’ve actually been through four or five of them now where Bitcoin made this big run up in price and there was irrational exuberance, and then it corrected back 60 or 70 percent. Each time it has done that it has reached a new plateau which has kind of matched the growth of the company. If you go back to 2012-13 when we started, we had 500 people a day signing up. After the next bubble and correction, we had 5,000 people a day sign up, and now it’s more like 50,000 a day signing up.”
He also compared things to the start of the internet when companies came and went as fast as cryptos appear to be doing today. When questioned about the SEC he said the scrutiny was justified and that they have been good to work with in weeding out bad actors while approving genuine operators.
Ethereum co-founder, Joseph Lubin, meanwhile has attributed the current market volatility purely to speculation. In a Bloomberg interview he stated;
“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart,” before adding “With each of these bubbles we have a tremendous surge of activity and that’s what we’re seeing right now.”
Lubin continued to say that traders are causing the price spikes and dips but developer activity has increased by two orders of magnitude since last year’s peak. He is not concerned about the current market slump affecting the growth of the ecosystem and its adoption and neither, evidently, is Coinbase boss Armstrong.
In а recent discussion on the state of the cryptocurrency market with Bloomberg, Lubin said that the value surges of the past year were just another bubble like the previous “six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening.”
He added that on close scrutiny those peaks look like “pimples on a chart.” Lubin said that each bubble, such as the current one, has brought a significant burst of activity. He stated:
“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”
Lubin attributed volatility to “trader types,” i.e. speculative investors, saying that it is not necessarily an indicator of underlying infrastructure enhancement. When asked about how the price volatility affects him, Lubin answered:
“So we can look at the price and make growth plans and projections, and we’re still on track, basically. So this is not unexpected.”
Yesterday, Ethereum (ETH) dropped to a 9-month price low, and was trading at $288. The last time the altcoin fell below the $300 price point was in early November, 2017. This morning losses expanded to 16 percent on the day and almost 35 percent over the last week.
Currently, ETH is trading around $263, down 7 percent on the day, with a market capitalization over $26 billion.
Ethereum’s 24-hour price chart. Source: Cointelegraph Ethereum Price Index
Ethereum co-founder Joseph Lubin referred to Berlin as “the most important city in the blockchain cosmos”, Cointelegraph auf Deutsch reported July 25.
Lubin said that, “Berlin has the infrastructure, Berlin has the talent, the really good programmers are here.” Lubin added that, if Berlin wanted to maintain its status as a blockchain hub, “the government needs to set up more programs to promote blockchain.”
“We’ve seen a lot of bubbles bursting, and will do so more often in blockchain and cryptocurrency. At $30, Bitcoin was a bubble, at $200 and at $20,000 even.”
Even though he is less interested in cryptocurrencies, the hype surrounding Bitcoin is anything but bad, according to Lubin, because it will bring more money to the market and drive technology forward.
Lubin’s main concern is developing the next stage of the Internet, which he refers to as Web 3.0. According to Lubin, the “old web” has too many mistakes; people do not have control over their data, meaning companies can capitalize on user data, and there is no quick system for settling cross-border payments.
Lubin said, “We have to get away from silos, from companies that collect data and make money, and people should have that back in their hands.”
In an interview with Cointelegraph, Lubin said that when Vitalik Buterin came up with the description for the Ethereum platforms, “It was essentially the most elegant, the most powerful description of a blockchain platform up to that point.”
Lubin added that Ethereum, “enabled, essentially, billions of software engineers to not worry too much about what is going on the protocol layer and just build with tools similar to what they are used to using, when building web applications and mobile applications, and identify their own problem, and build their own solution.”
ConsenSys, a blockchain software technology company focusing on Ethereum (ETH) development, has confirmed they will advise the Xiongan government on blockchain and software solutions in order to establish it as a “next generation smart city [and] leading blockchain innovation hub,”according to the (MoU) signed in Beijing.
In April 2017, Chinese president Xi Jinping announced plans to build Xiongan as a special economic zone spanning three counties. The South China Morning Post reports that the urban development project will “redirect” around 6.7 million people and could bring in 2.4 trillion yuan ($348 billion) over the next decade, citing a 2017 estimate by Morgan Stanley.
According to the South China Morning Post, Xiongan’s local government has previously partnered with Chinese tech firms Tencent, Ant Financial, and Qihoo 360 for bringing blockchain use into the city. The partnership with ConsenSys is the “first known case” when Xiongan has brought in a foreign company for urban technological development, the South China Morning Post reports.
“As one of our first major projects in the People’s Republic of China, we are excited to help define the many ‘use cases’ that could benefit from the trust infrastructure enabled by ethereum technology.”
Chinese president Xi Jinping has ambitious plans for technological development in China. During the nineteenth annual conference at the Chinese Academy of Sciences in May, the president had called blockchain a “new generation” technology that is part of the “technological revolution.” More recently, in mid-July, two Chinese standards organization announced they would lead a research group for promoting the international standardization for the Internet of Things (IoT) and blockchain tech.
Also in July, the Chinese city of Nanjing launched an almost $1.5 billion investment fund for blockchain development.
Coming every Sunday, the Hodler’s Digest will help you to track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.
Top Stories This Week
US Charges 12 Russian Intelligence Officers With Crypto-Funded Election “Interference”
The U.S. Department of Justice released an indictment this week that charged twelve Russian nationals with the intention to “interfere” in the 2016 U.S. presidential elections. According to the indictment, Russian officials from the government’s Main Intelligence Directorate mined cryptocurrencies like Bitcoin in order to fund efforts to hack into various computer networks associated with the Democratic Party, Hillary Clinton’s presidential campaign, and U.S. elections-related state boards and technology companies. The Russian hackers then released stolen emails through a crypto-funded domain while promoting themselves as “American hacktivists.”
Billionaire Google Co-Founder Reveals He Mines Ethereum With Son As A “Side Hustle”
Sergey Brin, the co-founder of Google and the current president of Google’s parent company Alphabet, has said that he and his 10-year-old son mine Ethereum together as a “side hustle.” Brin also said that cryptocurrencies are “mind-boggling” and the crypto global network is “extraordinary,” admitting that Google hasn’t been on the “bleeding-edge” in embracing crypto.
UK Study Finds Crypto Has Potential To Become Mainstream Payment Means In Decade
A joint study by Imperial College and U.K. trading platform eToro writes that cryptocurrencies like Bitcoin could become a mainstream means of payment in the next decade, as they already meet one of the three main criteria of money— store of value. In order to become a fully fledged payment instrument, the study notes that cryptocurrencies must now solve their six main challenges: scalability, usability, regulation, volatility, incentives, and privacy.
Three American Economists Shoot Down Bitcoin’s Chances For Survival
Nobel Prize-winning economist Joseph Stiglitz, former chief economist at the International Monetary Fund (IMF) Kenneth Rogoff, and NYU economist “Dr. Doom” Nouriel Roubini have all expressed negative views about Bitcoin during an interview. According to the three economists, Bitcoin’s anonymity, volatility, and ability to be used for “nefarious activity” mean the coin will fail as a currency.
Elon Musk Refers To Twitter Crypto Scammers’ “Mad Skillz” In Tweet About Ethereum
Billionaire Elon Musk, the founder of Tesla Motors and SpaceX, tweeted this week about the “mad skillz” of Twitter scammers impersonating famous people to steal ETH and other crypto from their victims. Ethereum co-founder Vitalik Buterin responded to Musk by both asking Twitter CEO Jack Dorsey for help and noting his disappointment that Musk’s first tweet about ETH concerned scammers.
Most Memorable Quotations
“I want to know who is running the Etherium [sic] scambots! Mad skillz…” — Elon Musk, billionaire entrepreneur, on Twitter crypto scams
“We’re moving into a qualitative shift in the nature of money…towards a world of ‘global villages’ where you can have decentralized governance,” — Joseph Lubin, Ethereum Foundation co-founder
Laws And Taxes
Philippine Special Economic Zone Issues Three Provisional Crypto Exchange Licenses
The Philippine’s Cagayan Economic Zone Authority (CEZA) has issued provisional licenses to three crypto exchanges, reportedly two from Hong Kong and a third from Thailand. CEZA, which is a state-owned corporation that control the operations of the special economic zone, expects to attract $3 million of investment as a result of the issuance. The Philippine government announced in April that it would allow 10 blockchain and crypto-related companies to operate in the special zone to stimulate the economy.
EU Directive Sets New Legal Framework For Financial Watchdogs To Regulate Crypto
The EU Fifth Anti-Money Laundering Director, which came into force on July 9, will create a new legal framework for regulating digital currencies to protect against money laundering and terrorism financing. The new rules include stricter transparency requirements for the use of “anonymous payments through prepaid cards” and “virtual currency exchange platforms.
South Korea Legislators Reveal Crypto, ICO, Blockchain Bill Drafts
South Korean regulators will reportedly introduce drafts of bills regulating cryptocurrencies, initial coin offerings, and blockchain tech at an extraordinary National Assembly session which will take place from July 13-26. The bills are reported to call for regulations on crypto trading platforms in order to prevent money laundering, cybercrimes, and personal data leaks. Also this week, South Korean regulators promised to create more friendly blockchain investment legislation.
Report: India Won’t Ban Digital Currencies, But Will Treat Them As Commodities
An anonymous source in the government reported this week that India is not gearing up for a blanket crypto ban, but will instead treat digital currencies as commodities. According to the source, Indian regulators participating in a Finance Ministry-ordered crypto study are mainly concerned with tracking investors and funds to fight money laundering and illicit financing.
Bermuda To Introduce New ICO, Distributed Ledger Technology Regulations
Bermuda’s Premier and Minister of Finance has introduced new regulations on ICOs to the House of Assembly this week. The new regulatory guidelines lay out the information required for ICOs projects, as well as establishing compliance measures for companies conducting an ICO. The Premier also noted that the government will set out a legal framework for distributed ledger technology, passing the Digital Asset Business Act 2018.
London School of Economics To Offer Online Crypto Investing Course
The London School of Economics will offer an online course titled “Cryptocurrency Investment and Disruption” beginning this August. According to the announcement, students will learn the “practical skills” involved in dealing with crypto exchanges, crypto wallets, and how to evaluate the analytics of ICOs.
Blockchain-Based Phone To Be Released In November By Sirin Labs
Swiss smartphone developer Sirin Labs will release a blockchain-based phone, the Finney, this November with an expected price of $1,000. The phone will be based on the Android system, and run on SIRIN OS with an included cold storage wallet, a Token Conversion Service, and a DApp store. Sirin Labs previously released a privacy-focused smartphone in 2016 for the much higher price of $16,000.
Ledger Reportedly Attracts Industry Investors For Funding After Selling 1 Mln Wallets
Security-focused hardware wallet Ledger, which sold more than one million crypto wallets in 2017, is now seeking an additional funding found. The company already raised $75 million in a Series B funding round in January, but the new fundraising intends to attract “industrial partners who will also sign commercial contracts with the crypto startup.” Forbes reports that tech giants like Samsung, Siemens, and Google’s venture arm GV are interested, with talk of Ledger’s valuation reaching as high as $1 billion.
Czech Investment Banking Firm Reveals $100 Mln Fund For Israeli Blockchain Startups
Investment banking firm Benson Oak said this week that it would pump “around $100 mln” into Israeli startups with an emphasis on blockchain tech. The company has already raised one fourth, or $25 million, of the funds, and notes that Israel was chosen as a focus due to its potential for “great entrepreneurs” to develop blockchain further.
Bloomberg: Billionaire Steven Cohen Reportedly Backs Crypto, Blockchain Hedge Fund
Steven Cohen, the founder of Point72 Asset Management, is allegedly backing crypto and blockchain-focused hedge fund, Autonomous Partners. According to Bloomberg, Cohen invested in Arianna Simpson’s crypto hedge fund visa his private equity firm Cohen Private Ventures.
Mergers, Acquisitions, And Partnerships
Litecoin Foundation Partners with TokenPay, Acquires 10 Percent Stake In German Bank
The Litecoin Foundation has partnered with crypto-fiat payments firm TokenPay and acquired a 9.9 percent stake in Germany WEG Bank AG. TokenPay transferred its equity share of the bank to the Litecoin Foundation as part of an agreement that the foundation will provide blockchain and marketing expertise for TokenPay’s operations.
South Korean Logistics Giant Join Blockchain Transport Alliance
Seoul-headquartered logistics and shipping firm, Lotte Global Logistics, has joined the Blockchain in Transport Alliance (BiTA) this week. The BiTA was formed in 2017 to develop blockchain applications in transport and logistics industries, and includes as FedEx, Uber, shipping giant UPS, and GE Transportation as members.
Saudi Arabian Municipality Partners With IBM For Blockchain Development
The Riyadh Municipality in Saudi Arabia has partnered with IBM in order to develop blockchain tech for government services. The Riyadh Municipality, IBM, and Saudi tech firm Elm Company will collaborate on workshops for deciding with government services are suitable for blockchain.
Winners And Losers
The crypto markets are still down this week, with Bitcoin trading for around $6,297, Ethereum for around $438, and total market cap around $250 billion.
The top three altcoin gainers of the week are BitShares, Decred, and Enigma. The top three altcoin losers of the week are DigiByte, KuCoin Shares, and RChain.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
FUD Of The Week
Head of Chinese Regulator Says Blockchain Shouldn’t Be “Mythologized”
Fan Wenzhong, the head of the international department of the China Banking and Insurance Regulatory Commission, said this week that although blockchain innovation has “significant meaning,” one shouldn’t “mythologize” the technology. Wenzhong also added that decentralization is merely a loop of an old trend, and that cryptocurrencies are not “necessarily useful.”
20 Arrested In Chinese Cryptojacking Case Allegedly Affecting Over 1 Million Computers
A major cryptojacking case in China has led to the arrest of 20 suspects that reportedly garnered around $2.2 million in illicit profits by infecting over 1 million computers with cryptojacking mining scripts. Local sources report that the investigation began in January of this year after a security team alerted the Weifang City Public Security Bureau about a mining script hidden in freely-downloadable plugins.
Decentralized Crypto Platform Bancor Experiences “Security Breach” Involving $12 Mln
Bancor, a decentralized cryptocurrency platform, halted operations on July 9 as it investigated a “security breach” that reportedly involved around $12 million of Ethereum, $1,200 of Pundi X, and the platform’s native token BNT. The exchange reported that no users funds were affected, as cryptocurrencies are not held in hot wallets. Bancor’s head of communications told Cointelegraph that the exchange expected to be back online in 24 hours. As of press time, Bancor is back online.
Cybersecurity Firm Kaspersky Lab Finds More Than $10 Mln ETH Stolen Over Past Year
Kaspersky Lab reports that cyber criminals have stolen around 21,000 in Ethereum through social engineering schemes over the past year, with more than a hundred thousand alarms triggered on security software dealing with crypto since the beginning of 2018. According to the report, the scammers targeted investors interested in ICOs, using fake websites and phishing emails to illegally obtain their victims money.
Study Shows That Over 80 Percent Of ICOs Held In 2017 Were Scams
According to a study by ICO advisory firm Statis Group, more than 80 percent of ICOs conducted in 2017 can be considered scams. The study examined the life cycles of the ICOs, determining that four percent had failed and three percent had “gone dead.” The ICOs identified as scams garnered $1.34 billion of funding overall, which is 11 percent of total ICO funding in 2017.
Prediction Of The Week
Bitcoin Will Hit $60,000 This Year, Says TenX Co-Founder Julian Hosp
Julian Hosp, the co-founder of crypto startup TenX, repeated his previous prediction that Bitcoin will hit $60,000 this year. Last December, Hosp had forecasted that Bitcoin would see both $5,000 and $60,000 in 2018, and he is still “quite confident” that the $60,000 mark will become a reality.
Aleksandr Bulkin from Coinfund explains the impudence of assuming that a decentralized solution will automatically work, and the importance of avoiding the hubris that can blind developers to gaps in their project.
Chris Douthit, CEO and analyst at CryptoInvestingInsider.com, draws parallels between an American entrepreneur creating “fake news” in the 1800s to buy up as many gold mines as possible with the media “FUD” around cryptocurrencies today. Douthit details what he considers the recent “eye opening” changes that show the crypto space is actually moving in the right direction, like Bloomberg’s Crypto Galaxy Fund Index and Goldman Sachs’s future crypto trading desk.
The panel’s participants were the Ethereum Foundation’s co-founder Joseph Lubin, CEO of crypto merchant bank Galaxy Digital Mike Novgoratz, Crypto.com CEO Kris Marszalek, Tenx’s Julian Hosp, and Wall Street Journal columnist Jacky Wong.
First tackling the popular question of whether crypto can replace fiat, Mike Novogratz argued against the idea, saying that neither Bitcoin (BTC) nor Ethereum (ETH) are positioned in the short-term to do so. Both of them represent “system change,” he said, rather than a substitute for cash.
Bitcoin is likely to remain a “store of value,” or “digital gold,” he suggested, with Ethereum serving as a form of “crypto-fuel” for decentralized ecosystems.
Lubin agreed with this characterization, considering that Ether will be “just one of many crypto-commodities in an information ecosystem”:
“We’re moving into a qualitative shift in the nature of money…towards a world of ‘global villages’ where you can have decentralized governance, you can define goals for your ecosystem, mechanisms by which you achieve those goals, and raise money through your own cryptocurrency or value token within these networks.”
TenX’s Julian Hosp echoed Lubin’s vision that in future, fungible digital tokens will overhaul existing systems and serve all aspects of the global economy, whether in real estate, equity and stock markets, or consumer goods.
Arguing against Novogratz, Hosp said that by implication, cash will become regarded as just one of many existing assets, and not necessarily as the best or exclusive medium of exchange in any one given environment.
Lubin then steered the panel towards the broader impact of “tokenized” systems — something he characterized in his solo speech at Rise today as a “radically different architecture for society.”
Whether defined as “global villages,” “protocol-based urban platforms,” or “networked business models,” the takeaway from Lubin’s contribution was that cryptocurrencies will profoundly restructure society — whether or not they eventually come to replace cash as payment “for your Starbucks coffee.”
Last month at MoneyConf in Dublin, Jeremy Allaire, Co-Founder & CEO of Circle shared Lubin’s vision of an unprecedented “crypto-revolution,” saying that global society is “at the beginning of a tokenization of everything.”