Crypto SWOT: Crypto,com received UK regulatory approval last week

Crypto SWOT: Crypto,com received UK regulatory approval last week

Strengthens

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Chilz CHZ, which rose 21.88%.
  • Crypto.com said it received approval from the UK’s Financial Conduct Authority to be registered as a crypto asset service provided in the country, an important step to expand its business there. Crypto.com CEO Kris Marszalek said that “the UK has become a strategic, important market for the firm and one of the most important markets globally for crypt0,” according to Bloomberg.
  • Kansas City Chiefs’ quarterback Patrick Mahomes is behind NFT firm Dapper labs, making him one of the first major celebrities to back a crypto company after the industry’s dramatic crash. The company hopes Mahomes will drive fan engagement with features and events in the product, among other things, writes Bloomberg.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer this week was Convex Finance CVX, down 28.24%.
  • Coinbase shares fell as much as 7% after announcing in a blog post that it will temporarily pause new Ethereum and ERC-20 token deposits during the merger. The pause for deposits and withdrawals is a temporary security measure, according to Bloomberg.
  • Ether, which led gains amid optimism over the blockchain software update known as Merge, was down nearly 2% at $1,904. It hit $2,000 last Saturday and is up about 75% since mid-June. The token has fallen after reaching $2,000, cooling the crypto markets.


Possibilities

  • The core developers working on the much-anticipated software upgrade of the Ethereum blockchain confirmed September 15 as the likely official date for the so-called merger. This is possibly the final forecast for the timing of the upgrade, which will make the network more energy efficient, according to a developer’s conference call Thursday, writes Bloomberg.
  • CME Group, a derivatives marketplace, plans to launch options on dollar-linked Ether futures on September 12. These new contracts deliver one ether futures, size 50 ether per contract and based on the CME CF Ether-Dollar Reference Rate. The new contracts will also expand CME Group’s existing suite of crypto options contracts, which include Bitcoin options as well as micro-sized Bitcoin and Ether options, writes Bloomberg.
  • BKCoin Capital, a digital asset hedge fund, plans to expand into ETF trading and move transactions to traditional exchanges, where crypto-tracker products are listed. The fund’s strategy will be able to capture the differences in the prices of passive ETFs that track crypto and the spot market, writes Bloomberg.

Threats

  • The value of funds lost to cryptocurrency hacking has increased this year as decentralized financial protocols have become an easy target for attackers, according to a report by blockchain analytics firm Chainalysis. About $1.9 billion worth of digital tokens have been stolen in hacks this year through July, up 58% from the same period in 2021, Bloomberg reports.
  • Federal Reserve regulators have a stark warning for banks looking to take advantage of new opportunities involving cryptocurrencies: make sure they’re legal first. As reported by Bloomberg, the central bank on Tuesday issued a supervisory letter recommending steps lenders overseen by the Fed should take before engaging in the digital asset industry.
  • Cryptocurrencies saw a sharp sell-off as global markets retreated amid growing uncertainty about the direction of monetary policy. Bitcoin fell as much as 8.3%, hitting its lowest level since late July. Ether and smaller virtual coins saw sharper falls. Avalanche, Cardano and Solana fell more than 10% at one point, writes Bloomberg.


Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.

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