Welcome to your bi-weekly crypto-verse update with Breach.

In this edition:

  • Facebook's new crypto wallet 
  • Bitcoin is now in the U.S. Stock exchange 
The Movers
Bitcoin (BTC) - $58,687.60 (-6.58%)
Ethereum (ETH) - $3,994.50 (-5.11)
Cardano (ADA) - $1.94 (-11.14%) 
Solana (SOL) - $188.08 (-9.88%)
Binance Coin (BNB) - $450.51 (-7.48%)
Ripple (XRP) - $1.01 (-9.39%)
*Data as of 11.30 AM WAT on 27th, Oct 2021.  Via Coinmarketcap
Facebook's new digital wallet
Facebook has launched its much-discussed digital wallet, Novi digital wallet, in partnership with popular crypto trading platform, Coinbase.
Novi (currently in the test phase in the U.S. and Guatemala) will allow users to send and receive funds internationally, 'instantly and with no fees' using Paxos, a USD-backed and regulated token.
Calibra becomes Novi: Novi was initially introduced as Calibra in 2019, and Facebook's stablecoin, Libra. But after U.S. lawmakers refused to regulate it due to security concerns, Facebook rebranded them (Calibra became Novi; Libra became Diem) and the launch was postponed.
The name isn't the problem: Moments after Facebook's Novi announcement, U.S. lawmakers sent a letter to Facebook CEO Mark Zuckerberg, asking him to terminate the project. They believed the company had shown no evidence that they could trust them to keep customers safe.
The U.S. may force Novi to close shop if they don't adhere.
Bottom line: Some experts believe much of the pushback from lawmakers comes from concern that, with their market share (including users on FB-owned platforms Instagram and Whatsapp), Facebook's stablecoin ambitions could undermine traditional currencies such as the U.S. Dollar and the Euro.
Can Facebook be trusted? Stablecoins are regulated and backed by insurance to protect the user, and Paxos have that going for them. But with all the data infamy surrounding Facebook, scepticism is understandable. However, Facebook does not have a monopoly here. Many easy-to-use platforms like Coinbase and Exodus, offer the same service as Novi (and more).
Bitcoin is now on the U.S. stock exchange
Yet another indication of crypto's place in the finance world: crypto pacesetters, Bitcoin and Ethereum crossed all-time highs this week, and experts believe it's due to new U.S. ETF regulations.
Mainstream bump: Bitcoin reached $66,000 ****for the first time, possibly due to the approval of ProShares bitcoin-linked exchange-traded fund (ETF) for U.S. investors.
Hold on; WTF is an ETF?: Usually, the stock exchange lists companies individually, but an ETF is a pre-selected collection of assets — such as stocks, government bonds, commodity futures, currencies— on the exchange and is traded as a diversified investment pool. The value of the ETF is determined by how each asset is doing; investors don't own any of the underlying assets, just the value.
So the crypto ETF is... A Bitcoin ETF mirrors the price of Bitcoin. Investors can buy a Bitcoin ETF on the stock exchange without actually purchasing any Bitcoin; they're just buying an asset collective that is backed by a value of Bitcoin. This is great for:
  • investors who want to tap into Bitcoin's growth but don't want to use any crypto exchanges.
  • investment professionals who use advanced trading methods (like short selling and buying put), which can't be done on crypto exchanges
ProShares is the first success: Since 2017, American regulatory agencies blocked various requests to launch a Bitcoin ETF, primarily because they didn't understand the crypto-verse. Crypto professionals say that this victory further signifies the place of digital currencies in finance.
Looking ahead: While an ETF stamp of approval might not mean much for people already sold on crypto, it does act as an endorsement for sceptics, which could encourage wider acceptance in everyday trading.
Breach Reads
Here are a few other articles we think you'll enjoy
  • Singer/songwriter and businesswoman, Mariah Carey, has recently partnered with cryptocurrency exchange Gemini to encourage her fans to sign up to the platform and invest in Bitcoin and other cryptocurrencies (Cryptodaily)
  • A scammer admitted to stealing over $340,000 in Ethereum by posting a fake NFT link on a chat room. Though they returned all of it, the community are still insisting that the hacker be held to further account (Cryptobriefing)
  • Coinbase will become the NBA's official crypto platform through a new partnership and sponsorship deal. Fans can already pay for merchandise and tickets on some sports teams so this might be sealing the deal for others (Cryprobriefing)
  • Australian Senate Committee Makes 11 Cryptocurrency Regulation Recommendations That Will Allow It To Compete With Other Financial Global Hubs (Cryptodaily)
  • DraftKings will collaborate with Polygon, an Ethereum-based scaling platform, to support custom NFT drops on DraftKings Marketplace. The deal provides DraftKings Marketplace with a scalable, eco-friendly blockchain solution that enables added throughput and expanded capabilities (Seeking Alpha)
  • Crypto games: Korea-based game developer WeMade says their profit has quadrupled since they launched the Blockchain-based game, Mir 4 in late August (Forbes)
  • Russia, the third-largest crypto mining hub after the US and Kazakhstan, is considering using natural gas that is otherwise wasted in oil drilling, to mine crypto (The Block)
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