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What’s the Story? Cryptocurrency companies are now in the lobbying game.
Why It’s Important? Cyberphunks everywhere must be freaking out. This step is the natural evolution of cryptocurrency. Bitcoin started out as a decentralized currency free from regulators. Now some of cryptocurrency’s most prominent supporters are lobbying the government to make sure “the right regulation” is in place to support the industry. People thought governments would just roll over and let the digital asset industry go unencumbered by regulation. The industry realizes we need to work with regulators, not against them.
What’s the Story? Polychain was up 2,303% in 2017. This year its main fund is down 31%
Why It’s Important? Olaf Carlson-Wee is the poster child for cryptocurrency hedge funds. He founded one of the earliest cryptocurrency funds and is probably the most well-known manager in the space. It’s clear he needs a PR person because the WSJ article reflects on him very poorly. It characterizes someone who rode the boom and then sold out. Olaf bet the farm on cryptocurrency when he graduated college and has a right to cash out some of his holdings. He’s been one of the biggest supporters of the space. There does seem to be glaring issues with the way Polychain is run. He admits to filing a fake address on an SEC document to deceive hackers. We aren’t lawyers, but that seems like a no-no. Many funds in the traditional hedge fund space are one hit wonders. It happens. Markets are cyclical, and you can’t be right all the time.
What’s the Story? PSG is launching a cryptocurrency.
Why It’s Important? We saw a few tweets about how the market is reaching peak euphoria when a company that does not need launching a cryptocurrency is starting a cryptocurrency. PSG is adopting a token to allow fans to vote on specific strategic issues or attend “fan” meetings. Why does this need a token? Soccer clubs have polls all the time, and fans don’t need a token to participate. PSG can go on Facebook Pages launch a poll for their fan on what jersey the team should wear for their friendly. The partnership chief commented, “the hope is to make the polling process more secure and transparent, with transactions being publicly visible.”. Huh? Does PSG have transparency issues around what jersey to wear? Makes no sense.
What We Read This Morning
SEC Charges ICO Superstore and Owners With Operating As Unregistered Broker-Dealers: SEC charged an unregistered broker-dealer with selling ICOs.
Single collateral Dai— 9 months in review: Mike McDonald of Walder Bridge Capital looks at how Dai, the stablecoin, has performed since launch.
Bitcoin crash: This man lost his savings when cryptocurrencies plunged: CNN profiles Sean Russell, who lost his entire savings when investing in cryptocurrency.