1. We have to begin our review with a class action lawsuit filed with the District Court of the Southern District of New York against the Bitfinex cryptocurrency exchange and $ 1.4 trillion stablecoin issuer Tether.
The amount of the claim is certainly ridiculous. $ 1.4 trillion is almost half of the US annual budget, or twice as much as the capitalization of the entire cryptocurrency market at its peak.
The lawsuit was filed by 5 people who are not clients of the exchange. Their lawyers will be Kyle Roche and Vel Friedman, who previously won a trial against Craig Wright.
The essence of the charge:
• Filling the market with unsecured tokens pegged to the US dollar;
• Creation of the «largest bubble in the history of mankind»;
• Market manipulation;
• Cheating investors;
• Cheating plaintiffs;
•Violation of antitrust laws;
• Violation of the RICO law (The Racketeer Influenced and Corrupt Organizations Act – the US law on investing capital received from racketeering);
• Violation of the Law on Commodity Exchanges.
A couple of days before this, a publication appeared on the Tether and Bitfinex websites stating that a «groundless lawsuit» was being prepared against the companies.
2. Against the background of these events, the UNUS SED LEO rate has fallen sharply, but it has now updated the bottom, reaching $ 0.95. It should be reminded, that the price of its initial sale was $ 1.
In May, Bitfinex decided to close holes in its own budget by issuing a new token and selling it at $ 1 per token. Thus, the company managed to raise $ 1 billion from a group of investors. By mid-June, LEO almost doubled, but has been steadily declining since then. Now it is quoted even below the original price.
An interesting version appeared on the net about this:
3. The conditions for using the Grams Wallet (TON) have appeared on the Telegram messenger website. Highlights:
Full version – https://telegram.org/tos/wallet.
4. The custodian company «Anchorage», which is a member of the Libra Association, wrote in its blog that it will begin to provide storage services for Gram tokens.
«We are the first qualified custodian to provide institutional token storage services at the time the network was launched on October 31» it is said in the publication.
Institutional investors and companies wishing to develop products based on the Telegram Open Network will be able to use its regulated service. Investors wishing to purchase Gram tokens will be able to do this on the open market or through TON Reserve.
5. Already next Monday, the SEC should give an answer to the application for the launch of ETFs on Bitcoin from Bitwise Asset Management. Matt Hougan, the head of research at the company, is optimistic despite on the constant shifting and doubts of the regulator.
«We are closer now than ever» he said in a conversation with CNBC. «Monday is the deadline for reply. This week will be very exciting undoubtedly».
Hougan believes that the Bitcoin market two years ago and now is like day and night.
«Two years ago there were no regulated and insured custodians of assets. Well-known companies like Fidelity and Coinbase have now insured hundreds of millions of dollars with Lloyd’s of London. Two years ago there were no regulated crypto exchanges. Now 6 out of 10 top sites are regulated by the New York State Department. Two years ago, there was an asymmetric, inefficient and manipulative market. Now we have over $ 200 million in daily volumes and adjustable futures».
6. Meanwhile, Bitcoin pushed off the level of $ 7,700 and thus kept reliable on a correctional upswing, CoinDesk analyst Omkar Godbole believes.
According to him, the support was the moving average, at the level of which sellers met resistance.
7. The SEC has once again stated that it doesn`t consider Bitcoin a security.
«We don`t believe that current Bitcoin buyers rely on other people’s significant managerial and entrepreneurial efforts to generate income» it is said in the statement.
In addition, the regulator noted that if Bitcoin were recognized as a security, this would provoke many problems.
8. Andreas Antonopoulos, entrepreneur and longtime Bitcoin enthusiast, is sure that at the moment no cryptocurrency is capable of shifting from the positions of leaders: Bitcoin and Ethereum.
He added that «bitcoin killers» periodically appear – cryptocurrencies that have higher bandwidth, but they have significant differences that prevent them from becoming the new digital gold.
As an example, he cited the ether, which is now the second largest cryptocurrency. Ethereum was once an innovative product. He introduced smart contracts based on virtual machines and occupied its own niche, but didn`t shift Bitcoin.
Therefore, new cryptocurrencies can occupy the first positions only if Bitcoin and Ethereum are destroyed.
9. Brad Garlinghouse, Ripple CEO, doubts that Libra will launch successfully next year. In his opinion, the start of the project will take place no earlier than 2022.
«The point is strong regulatory pressure. If Facebook was not behind Libra, then the project would have developed much faster. The social network has made many states have a negative attitude towards it» he said in an interview with Fortune.
10. In the third quarter, the volume of transactions and the user base of decentralized applications decreased markedly.
DApp.com analysts tracked transactions on the Ethereum, EOS, Steem, Tron, TomoChain, IOST and Blockstack blockchains and concluded that their volume was $ 2.03 billion, which is 40% less than in the second quarter. However, only 36% of users active in the second quarter entered the program in the 3rd quarter.
11. John McAfee, renowned cryptocurrency industry entrepreneur, launched the beta version of the decentralized exchange McAfeeDex, which is based on the Ethereum blockchain.
The start took place on October 7th.
«The exchange can be a way out that will free us from a tool for control in the hands of the government – fiat currencies. This exchange cannot be closed because no one controls it and it works anywhere» he said.
McAfeeDex will not require KYC from users, it will work in all jurisdictions and collect 0.25% for transactions. Any ERC-20 standard token can be added to the beta version of the platform.
12. The Minister of Finance of Germany proposed the creation of a national digital currency.
«We should not allow China, Russia and the United States to dominate in this area, but even more so to some private companies» he said.