What’s going on with Coinbase and Facebook?
Starting with Coinbase, many are still trying to work out what Coinbase is up to with its news listings approach. The listing of MANA for example, has been greeted with disbelief, given that Cardano, Stellar and XRP are yet to be listed.
The simple answer is that Coinbase is an exchange and needs to go where the volumes are in a market where liquidity is vanishing lower down the batting order.
Small coins are dying as one-time eager “investors” forget about coins that have dropped in value by 90% or more. But there are some that are thriving because of their utility, with ENJ, MANA and KIN some good examples, despite their lowly market caps.
Coinbase admitted that the latest batch of tokens to be listed were easy wins because the exchange has already engineered their solutions for listing ERC-20 tokens, such as MANA etc.
But is they are on the hunt for liquidity then it really is only a matter of time before XRP is listed, as it remains a favourite among retail investors.
Facebook is in the market for blockchain engineers as the ads below show.
Davis Marcus who moved over from Messenger to head up the new division that will be exploring how blockchain solutions could play a role in solving some of the social networks mounting problems with data protection and privacy.
Some are getting very excited about FB’s crypto efforts. However, given its deep pockets it is unlikely that the company would be using someone else’s chain and instead would probably develop its own private chain.
Also, if FB does introduce its own currency for its social network, it may low competing projects out of the water.
Alternatively the halo effect could be a boon for the sector as a whole, as it would be an example of a successful use case–- it could ignite ab blockchain gold rush.
However, it all ultimately depends on what FB comes up with.
Fundamentals still in place
Chris Burniske from placeholder VC in his latest blog post has some analysis that might bring small comfort to battered crypto investors.
He points out that the fundamentals are still intact, as measured by network value and daily transaction volumes
“From peak, Bitcoin’s and Ethereum’s network values are down 81% and 93%, respectively, whereas daily number of transactions are only down 41% and 52%, respectively.”
His favourite metrics are what he calls native functionality (demand-side), which for bitcoin is centred on. Moving value and for Ethereum is about running smart contracts. See the charts below:
As we argued last week, closing the short position at $3,471 was the smart thing to do – it’s always a good idea to take your profits off the table, although the downtrend is still in place despite the bounce. We will do a fuller analysis later today, but here is a reminder of the short position we suggested, with our target reached on 6/7 December, as seen in the two 1-hour red candles.