Weekend Market View 4.19.20- Wyoming Passes Law Allowing Insurance Companies to Invest in Crypto

Virtual assets are having a good run at the time of writing - with Ether ($ETH) +12.6% spearheading the charge as the market speculates the EVM will be Libra’s choice to deploy their revamped version of a supranational currency. After quickly taking the mantle of governments’ most hated with their attempt to usurp them of their seigniorage, they’ve conceded and have come back with plans to issue a stable coin per currency and then move on to create a global currency composed of these stable coins.

Even without this turn of events, Ethereum has been on an impressive tear. As a matter of fact, on-chain value transfers have reached parity with Bitcoin.

The value of USDT on the EVM ($4,853M) eclipsed that on the Bitcoin blockchain ($1,223) almost by a factor of four as stablecoins issuances in 1Q20 reached $8B. Maybe a reason why Reddit decided to launch their community points token as an ERC-20.

Lawmakers in Wyoming have successfully passed House Bill 0021 (effective July 1st) that permits digital asset investments by insurance companies. Whether the insurance companies actually playball is another story but could this just be the epiphany moment triggering FOMO en masse and a stampede to the gates? Recall, less than two years ago the $400M check Yale Endowment wrote for Paradigm was a tipping point for their peers to get involved in the game and now, nearly all endowments have some exposure to the space. Just as Ivy League endowments compare themselves with other endowments, the same applies for pension funds, hedge funds, long only asset managers and yes, insurers.

$BTC balances on exchanges have slipped 10% from highs and futures have flipped out of backwardation forcing the basis-arb traders to revisit positions, subsequently triggering a short squeeze of sorts. Halvening not so bad after all?

After pledging nearly 30% of his net wealth in fighting COVID-19, Jack Dorsey’s Square Capital was accepted by US Treasury & Small Business Administration to become a lender under the federal Paycheck Protection Program (PPP) as China shortlists 71 entities to join the "National Blockchain and Distributed Accounting Technology Standardization Technical Committee" where the group will discuss and set industry standards for distributed ledger technology as the Agricultural Bank of China debuts an interface for whitelisted users to test the country's CBDC (a.k.a. DCEP).

Roche Cyrulink Freedman LLP has come out of left-field in their filing of 11 class-action lawsuits against seven token issuers: Block.One ($EOS +9.5%), Tron Foundation ($TRX +6.5%), Bprotocol Foundation ($BNT +5.4%), Civic ($CVC +7.4%), Kaydex Pte ($KNC+4%), Quantstamp ($QSP +7.3%) and exchanges: Binance, Bibox, Bitmex & KuCoin. Their crime? Selling securities without saying they would. A creative response from KuCoin to mounting litigations and roadblocks has taken the bunny hopping business model to the next level. 

The $BCH halvening caused a -28% move from which it has since been clawing back the losses but with the network hashrate of 1.7EH, 1.4% the size of $BTCs and a price tag of less than $10K for a 51% hack makes you wonder if they’ll still be around.

The Bitcoin halvening is a month away and what a striking contrast this will depict vs. the trillions that your governments are flushing away.  Somehow there seems to be a grain we’re comfortable following… #BuyBitcoin

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