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What are you searching for? Smart hedge-fund money was lining up to bet against bitcoin, the thinking went, but had no convenient way to do it on the actual bitcoin exchanges. The only people trading bitcoin were the true believers, so of course it kept going up, but once it was opened up to normal financial players that would end. 19,511 early Monday, hours after CME launched its futures contract. Sunday’s start of trading on CME. It is of course still very early days for the futures, and it’s still possible that the shorts will come in and drive the price down. I guess it’s even possible bitcoin bulls and bears will both flock to the futures market and trade with each other to find an efficient and stable price that reflects bitcoin’s fundamental value, whatever that is.
The introduction of futures didn’t lead to a wave of hedge-fund money shorting bitcoin. The spread has tightened considerably — as of 8:15 a. 18,245, for a spread of about 2 percent — but it still exists. Why would you pay more for a synthetic bitcoin in a month than you would for an actual bitcoin today? You want bitcoin exposure, but you’d prefer to get it through a standardized contract on a regulated exchange that settles in dollars. Since the introduction of futures, the price of bitcoin has gone up, suggesting that there were more As — people who wanted to be long bitcoin synthetically — than Cs — people who wanted to be short synthetically — though again it is still early. Crudely speaking, the arbitrage spread suggests that there are also more As than Bs: There are a lot of people who want to be long bitcoin without owning bitcoin, but not so many people who want to own bitcoin without being long bitcoin.
2 percent to avoid them. You could imagine the spread going the other way, though. 17,500, paying the spread to an arbitrageur who was willing to do the actual shorting for them. But the fact that the spread is mostly positive, and that bitcoin’s price has been mostly going up, suggests that the demand has mostly been for synthetic long positions, not short.
Nasdaq on Wednesday and then announced on Friday that it was acquiring Ziddu. 2 billion as of yesterday’s close. Ziddu Coin is a smart contract that enables SME’s, processors, manufacturers, importers and exporters using cryptocurrencies across continents. Ziddu Coins are loosely pegged to Ethereum and Bitcoin. Ziddu coins into Ethereum or Bitcoin and use the proceeds for their working capital needs.
79,000 worth of working capital. 2 million, a dollar interest rate of over 2,400 percent. If you’d borrowed ether you’d be paying over 12,000 percent. Unless your working capital was bitcoin, you will not be able to pay back that loan. The lesson here is: Probably don’t borrow an asset caught in a massive speculative frenzy to fund your working capital needs. Look, you and I are sophisticated, and we get that “bitcoin’s price increase is deflationary and makes it a bad currency” is not a good argument against bitcoin, because “bitcoin is a bad currency” is not a good argument against bitcoin.
Bitcoin’s value proposition — much like that of gold — is that it is an uncorrelated store of value, not that it is useful for buying a sandwich. But at the same time you have to watch out for business models that are based on the casual assumption that bitcoin works just like a currency. Cryptocurrency-financed warehouse lending” has the word “cryptocurrency” in it, so it’s worth billions of dollars, but I’m not sure it works as a business model. 700 million and counting” by selling EOS tokens that it says “do not have any rights, uses, purpose, attributes, functionalities or features. PLEASE NOTE: CRYPTOGRAPHIC TOKENS REFERRED TO IN THIS WHITE PAPER REFER TO CRYPTOGRAPHIC TOKENS ON A LAUNCHED BLOCKCHAIN THAT ADOPTS THE EOS. THEY DO NOT REFER TO THE ERC-20 COMPATIBLE TOKENS BEING DISTRIBUTED ON THE ETHEREUM BLOCKCHAIN IN CONNECTION WITH THE EOS TOKEN DISTRIBUTION.
EOS operating system to launch blockchain applications, and those blockchain applications can use tokens, but they won’t use the EOS tokens, which — again — “do not have any rights, uses, purpose, attributes, functionalities or features. Matthew Roszak, one of block. EOS holders shouldn’t worry too much about the warnings the company has given about the tokens. It is hard to believe that anyone commits securities fraud anymore. 700 million selling it to people who “don’t think it’s fair reading into that language too tightly. Why bother to scam anyone?
Just because you mumble the word ‘blockchain’ doesn’t make otherwise illegal things legal,” which I hope is now an official CFTC position. 30 million initial coin offering, which is not a sentence you’d ideally want your general counsel to have to say to the press. Centra demanding the investors’ money back. If they were securities, they were sold illegally: They were offered publicly without being registered with the Securities and Exchange Commission, or being exempt from registration. And one remedy for the illegal sale of securities is that the buyers can demand their money back — whether or not Centra is legitimate, whether or not it is actually using the money to build a cryptocurrency debit card, whether or not it made any misleading statements in the ICO. Securities and Exchange Commission’s enforcement action against Munchee, an initial coin offering vaguely similar to Centra’s in that it featured “utility tokens” to be used in a blockchain ecosystem that did not yet exist, sold on promises of speculative returns. The SEC brusquely and correctly dismissed the notion that such “utility tokens” were not securities, and I suspect any court will agree.