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VeradiVerdict - Stablecoins - Issue #16

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Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional
 
December 18 · Issue #16 · View online
VeradiVerdict
Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing into blockchain companies and cryptocurrencies. I focus on early investments and want to share my thoughts and what’s going on in the industry in this weekly newsletter.
View this issue on my Medium blog here.
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Editorials
Stablecoins are currently a hot topic. As the price volatility of crypto continues to shake the market, investors and developers look to Stablecoins for protection against losses and stability for payments and collateral in decentralized applications. Stablecoins are basically cryptocurrencies pegged to the price of another currency or commodity. The idea is to allow crypto holders to exchange their volatile holdings for a stable store of value in the form of Stablecoins. In order to maintain peg the value, Stablecoins are backed with currency(fiat-collateralized), exchange-traded commodities(commodity-collateralized), other cryptocurrencies(crypto-collateralized), or seigniorage(algorithmic/non-collateralized). As there are pros and cons to the current approaches, it is unclear which strategy will be here to stay.
Pantera has invested into Stablecoins across each of the approaches. One of our investments, Basis, had news of their shutdown late last week. I’ve known of other projects shutting down but this is the most high-profile with their brand-name investor base. Two of the main reasons why projects are shutting down these days are surrounding regulations to operate and balance sheet capital, the latter possibly stemming from bad treasury management or even just use of funds for regulations and team-building. Basis cited regulatory reasons and at least are returning most of the funds to investors. I want to commend startups that return capital when they can’t execute on their original vision.
Digests
Mike Novogratz Explains Why He’s Still All-In on Cryptocurrency - Bloomberg
Bitcoin & Ethereum: Prices are Down More than the Fundamentals
4 eras of blockchain computing: degrees of composability
In the Tweets
Joseph Young
Fidelity and Nasdaq are continuing to strengthen the infrastructure around Bitcoin and crypto as a whole. The two firms invested $27.5m last week in a crypto futures exchange.

Meanwhile, Europe's largest asset manager wants the "authorities" to completely ban crypto. https://t.co/1sgwZF876H
7:30 PM - 11 Dec 2018
Coinbase
Continuous learning is a core value at Coinbase; we regularly invite in big thinkers to share ideas. Today, @mwseibel of @ycombinator spoke to the importance of tuning out hype during cycles in tech: “There’s no use pontificating; let’s just build products people want to use.” https://t.co/OwY3GgG4A1
6:16 PM - 13 Dec 2018
Justin Ðrake
@cyber_hokie Ethereum 3.0 is a set of ideas for beyond the foreseeable Ethereum 2.0 roadmap (phases 0, 1 and 2). I'd say it includes Casper CBC, super-quadratic sharding, data availability proofs, private leader election, STARKs (signature aggregation, witness compression, VDFs, state roots).
12:47 PM - 11 Dec 2018
Vitalik Non-giver of Ether
1. Time for a brief tweetstorm on non-financial applications of blockchains. As blockchain scalability gets better and better, and UX improves and fees drop as a result, this will become a bigger and bigger part of the story.
7:59 AM - 10 Dec 2018
^^Vitalik recently posted 15 tweets about non-financial applications of blockchain tech.
News
The Price Crash & The Impact On Miners – BitMEX Blog
Announcing the 0x Ecosystem Acceleration Program – 0x Protocol
Vertcoin (VTC) is currently being 51% attacked – Coinmonks – Medium
Regulations
New US Chief of Staff: Bitcoin is Good, ‘Not Manipulable by Any Government’
The CFTC Wants to Learn More About Ethereum - CoinDesk
‘Reluctant’ Hong Kong Stock Exchange puts Bitmain IPO in limbo
Basis Update – Basis Blog – Medium
New Products and Hot Deals
This Binance Labs-Backed Crypto Startup Wants to Anonymize Everything - CoinDesk
Introducing Offers to Lend – The Bloqboard Blog – Medium
Introducing the Gemini Mobile App — Crypto on the Go!
Ethereum OTC Trading is here. chat, sign, send - settled. - Settle Finance
Why we are forking 0x – Hydro Protocol – Medium
Opera's first Web 3-ready browser for Android is ready for download
Exclusive: Samsung bitcoin app to offer a cold wallet for cryptocurrencies - SamMobile
Galaxy Digital Leads $30 Million Funding for Social-Crypto Startup Good Money - CoinDesk
Blockstack Unlocks ~$25 Million in Funding — Blockstack
South Korea's Kakao Leads $15 Million Raise for Public Blockchain Startup Orbs - CoinDesk
UMA — Enabling Universal Market Access – UMA Project – Medium
Novogratz's Galaxy Digital Backs $4 million Raise for Crypto-Lender BlockFi - CoinDesk
We’ve acquired Atomic Bazaar to bring real-time trading to OpenSea users
Kraken Is Seeking 'War Chest' Investment at a $4 Billion Valuation - CoinDesk
Meet with Me
Los Angeles, January 11
New York City, February 5-7
London, London Blockchain Week, February 11-12
Let me know if you are in the area and would like to meetup.
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