Dear First Stage Investor,
Lots happening in crypto land. So let me take you on a little tour…
Keeping an Eye on the Tokyo Whale
From Japan comes welcome news about the “Tokyo Whale.”
Never heard of such a thing, you say? But you’ve probably heard of Mt. Gox, the now-defunct Tokyo-based bitcoin exchange that went bankrupt in 2014.
Remember? It shuttered its doors after the theft of 850,000 bitcoin back in 2014. Its main activity now? Paying off debt with its remaining 166,000 bitcoin (worth some $1.6 billion at today’s prices).
Since last September, it has sold 35,841 bitcoin and 34,008 Bitcoin Cash. And now it’s taking an approximate six-month break.
All that bitcoin pouring into the market in a relatively short time probably contributed to recent downward pressure. With a break in the action, perhaps it gives bitcoin a little more room to recover.
Looking to Bitcoin for Guidance
Okay, this is less news and more just a really interesting idea (even if it might not be true). Some observers are seeing a correlation between the crypto markets and the public stock exchange.
Think about it. The crypto markets’ incredible rise stalled out at the start of this year and promptly reversed direction. And the stock market’s multiyear rally petered out about a month later.
Just a coincidence? Or is there something else going on?
Could bitcoin, in fact, be a leading indicator of investor sentiment?
Count me a skeptic, but this article makes a persuasive case.
Launching a New Index Fund
I really like this announcement about the U.S.’s biggest cryptocurrency exchange, Coinbase. It’s launching a new fund called the Coinbase Index Fund.
It will allow investors to back all the cryptocurrencies traded on Coinbase with a single investment.
Right now, the fund includes bitcoin, Ethereum, Bitcoin Cash and Litecoin. As Coinbase adds new cryptos, they’ll also become available.
The fund is open only to accredited investors at the moment. But Coinbase hopes it’ll be able to launch a similar fund soon that’ll be available to all investors (probably in the form of an ETF).
Issuing Loans Against Bitcoin
From New York City comes news that family office Dominion Capital is planning to issue loans backed by bitcoin collateral.
It’s a much-needed alternative for owners of bitcoin who don’t want to sell but need cash.
The company said it will start with loans against bitcoin and expand to other cryptocurrencies eventually. The company would take custody of the crypto collateral for the life of the loan.
Creating Revolutionary Eye Drops
I couldn’t resist sharing this amazing piece of tech news with you. Israeli ophthalmologists have developed eyedrops made of a synthetic nanoparticle solution that repairs corneas.
They’ve been successfully tested on pigs’ corneas and are expected to be tested on humans in clinical trials later this year. If successful, this technology could make eyeglasses obsolete.
In the immortal words of my daughter Rachie (who said this when I sent her this article earlier in the week), “Whoa.”
Couldn’t have said it better myself.
As I mentioned, a lot is going on. And that’s not about to change.
So stay tuned.
Have a great weekend,
Andy