The last month has seen a lot of volatility in the price of Bitcoin, with many people ascribing both the rally over 13,000 and the fall to below 10,000 to the Libra story. There has certainly been a lot of coverage, with headlines like these coinciding with the pullback from the recent highs: “Bitcoin Tumbling … Continue reading Post Libra Backlash, How SHOULD we Value Bitcoin?
Libra IS: Designed to be a medium of exchange for consumers & retailers globally A private blockchain, controlled by its members An asset that is backed by a basket of other assets Libra IS NOT: Censorship resistant Exempt from the machinations of central bank monetary policy Starting with what Libra is, I will focus on its … Continue reading What is Libra & What it ISN’T
This month there have been two SEC enforcement actions that made headlines in the crypto community. One was the case against messaging platform Kik and their Kin token sale; the other was the action against holding company Longfin. In the first case, while investors lost money, it is unclear that Kik misled them about the … Continue reading Howey Schmowey – The Real Answer is to Update Securities Regulations
This is a quick note, written during Consensus to explain why investors and traders of Bitcoin should care about best execution. At CoinRoutes our algorithms enable our clients to be fully aware of the price discrepancies between exchanges. Yesterday, we saw incredible volatility that shows why this matters. First, lets look at the last day … Continue reading Why “Best Execution”? 4 Charts Explain
Late last month, the NY Attorney General filed a lawsuit against the parent company of Bitfinex and the Tether stablecoin (USDT), alleging that they illegally diverted funds to cover undisclosed losses incurred due to issues at a payment processor utilized by the exchange. The story has captured people’s imaginations, with a lot of media coverage … Continue reading What SHOULD we Learn From the Bitfinex/Tether Story?
The question on everyone's mind after today’s run up in the price of bitcoin, was "why did it happen?" There has been a predictable rush of articles. Barrons headline summed it up: Why Did Bitcoin Suddenly Surge? It’s a Mystery. A better question, is how could you have profited? At the very least, how could … Continue reading The “Mystery” of Today’s Bitcoin Rally And How You Could’ve Profited
(This piece was originally published in Coindesk's Institutional Newsletter) We have all witnessed armies of “introducers” trolling around LinkedIn & Telegram advertising their access to buyers or sellers of bitcoin, coupled with hundreds of wannabe over-the-counter (OTC) trading desks whose only method of trading is to call wholesale market makers. The irony of this is … Continue reading The Ultimate Irony of Crypto Trading
Over the past week, we have seen a couple of cases where the only way to explain the price movement in Bitcoin is if traders are dumb, evil or a combination of both. Before delving into the specifics, it is important to understand that the only way such things will cease occurring is if traders … Continue reading Does it matter if Bitcoin traders are evil, or just dumb?
The story of QuadrigaCX has been told and retold over the past week, but all of the stories miss the most important point. Lost among the tales of lost keys, a suspicious death, & questions of the coins existence is the fact that QuadrigaCX routinely violated principles of best execution. Wait??? Did he just say … Continue reading The REAL Lessons from the QuadrigaCX Fiasco!
With the announcement that Bittrex has joined Kraken, Coinbase, itBit and other exchanges by offering an OTC trading desk, it seems that most exchanges have decided that OTC trading is their best chance to grow their business. This comes amidst a backdrop of OTC desks out-competing the exchanges for market share, particularly for large traders, … Continue reading If You Can’t Beat Em, Join Em???