Libra’s not riding the struggle bus. It’s driving it.

 
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What actually matters this week, and why.

In my humble opinion…

you know which one you are. 😈

Project Highlight

interest rate swaps + crowd-based predictions

Think you can predict those crazy changes on Compound? Well, try out Cherry Swap – an autonomous, open-source platform for interest rate swaps on the Compound Finance markets. Phew, that was a mouthful. Let’s break that down! Each market on Compound (a protocol for algorithmic money markets on the Ethereum blockchain) has an interest rate that fluctuates according to supply and demand of credit and debt within that market. You’re essentially shorting (predicting a decrease) or longing (predicting an increase) the position of the future interest rate of a market on Compound. These could include RateLock, YAW, or WalletLink. On Cherry Swap, you hedge/speculate against these fluctuations by participating in pooled interest rate swaps, meaning that those who predicted correctly will be compensated more than those who were incorrect. You can read about the main goals of the project and the issues they’ve faced here, and the overall project here.

Libra, Facebook’s stab into the crypto world, hasn’t been on the struggle bus – it’s been driving it. Sorry, Zuck.

Here’s the lowdown! Ever since Libra was announced, they’ve encountered an impressive amount of resistance from pretty much everyone. Now, it looks like a few of Libra’s backers are getting cold feet due to regulatory pressure. Maybe they should take a leaf out of some older crypto projects’ book and ask for forgiveness rather than permission (aka, keep going until the cease and desist letters come). US government officials have been pretty unhappy with the potential abuse of power that running a private global currency could lead to. Sounds like they’re pretty scarred from the ol’ Facebook ordeal.

Institutional challengers against Libra have been stacking up for a while now –  we’re looking at you, People’s Bank of China and JP Morgan token. Even the current Governor of the Bank of England , Mark Carney, pitched a global digital currency as a “Libra-like” reserve currency to ease the dominance of the US dollar. Groundbreaking. Innovative. Utterly and totally unique. Also, just as a quick PSA, all of these digital currencies (including Libra) aren’t technically cryptocurrencies. Despite the fact that Libra has chosen to call itself a “low volatility cryptocurrency,” there are some ideological and technical differences. To most, Libra isn’t considered a cryptocurrency because 1) it doesn’t operate on a public blockchain 2) it’s a permissioned network, so not everyone can join 3) it does not have a fixed supply and 4) it’s tied to a series of currencies and other stable assets. So, put that in your back pocket.

Apparently, the (now former) CEO of Overstock.com had to resign due to his intensive crypto tour schedule and…conflicts as an FBI informant. You’d think Overstock would be backing away from the crypto game. You’d be wrong.

Ok, so some weird stuff has been going on with crypto enthusiast Patrick Byrne, the Overstock CEO. Byrne has been a leader in supporting retail, crypto, and blockchain integration for a while now, eventually introducing tZero (CRYPTO: TZROP) in 2017. (P.S. tZero has been under SEC investigation since 2018 which doesn’t look so hot.) His reason for resigning? A few weeks ago, Byrne claimed to be….wait for it…an FBI informant on a Russian spy he was romantically involved in. Unfortunately for Byrne, it appears that government officials aren’t too keen on his claims. The former Overstock CEO says his work with the government and his extensive time on the road shilling crypto has taken away from his duties as CEO, forcing him to quit a few days ago.

Unsurprisingly, the Overstock stock plummeted 40% a few weeks ago after Byrne announced his involvement with the government, but it began climbing after his public resignation. Ultimately, the company claims that they’re still long on crypto. The current Overstock CEO, Jonathan Johnson is quite enthusiastic about blockchain, saying, “Not only have I drunk the Kool-Aid, I’m drunk on the Kool-Aid.” Uh, ok! Overstock was the first major retailer in the United States to integrate Bitcoin as a payment method in 2014, with other companies quickly following suit. What can we take away from this? Crypto and blockchain integration in retail is an intuitive combination (there are tons of other projects and companies working on this), and Patrick Byrne is giving John McAfee a run for his money.

Bitcoin’s “realized market cap” (a metric to show the ‘real’ value of BTC) hit $100 billion yesterday. Party!

Craig Wright, a man who has done almost everything to prove he originally invented bitcoin, was ruled guilty in court yesterday. After perjuring himself and falsifying documents, he now must cough up 50% of his IP and BTC mined with his now-deceased business parter. OOF.

You may have heard of his token, Bitcoin SV (BSV) aka ‘Satoshi Vision’. It fell dramatically last night. Not so surprising.

Coin to Watch

(CRYPTO: MTL) Bitcoin SV! Just kidding, hah! Can you imagine if we recommended that? We’ve been seeing a lot of PR pushing for Metal Pay, which means that they may be morphing out of the dev phase and actually making moves.

You Laugh You Win

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