The third week of September has been exciting for the cryptocurrency markets. Arguably the biggest news is that a US Congressperson introduced legislation aimed to support the development of cryptocurrency and blockchain technology. On Friday, Representative Tom Emmer (R-MN) introduced three bills to create a clear legal framework, exempt miners and multi-signature providers from money transmitter registration, and streamline tax guidance on gains from forks. Emmer, cochair of the Congressional Blockchain Caucus, has taken a pro-cryptocurrency stance, even if the bills do not have majority support in Congress yet.
Here is the rest of the week in review:
Japanese cryptocurrency exchange Zaif publicized that it was recently hacked and lost $59 million worth of Bitcoin (BTC), Bitcoin Cash (BCH), and MonaCoin (MONA). The hack was first detected as a system error. Later Zaif reported the loss to Japanese regulators and the public. The firm Fisco Digital Asset Group will be covering customers' losses by providing the company with $44 million. In return, Fisco will become a major shareholder in Zaif. Although Zaif is a small exchange, this year's incidence of hacks and thefts worries many investors.
Grandshores Technology Group, a Hong Kong-based blockchain investment firm, is raising $12.7 million to launch a new stablecoin whose value will be tied to the Japanese yen. The $1.45 billion Hangzhou Grandshores Fund is government-backed and plans to release the stablecoin in early 2019. Founding partner Yongjie Yao believes that traders and exchanges will find the new stablecoin useful. Notably, the stablecoin's fundraising round will be denominated in Tether (USDT), a controversial token controlled by the Bitfinex exchange.
Joshua Greenwood, a former SpaceX engineer and trader, has founded a cryptocurrency exchange called LXDX. The new exchange has received funding from Singapore-based Dymon Asia Capital. It is headquartered in Malta, a popular blockchain haven. LXDX aims to target institutional investors and make it easier for them to access. It envisions professional-grade trading tools like smart order routing. Greenwald believes that quality infrastructure will help solve the problems that exchanges currently face. LXDX is the newest exchange that wants to cater to supposed institutional demand.
Crypto prices broadly rebounded this week, reaching a market capitalization of $225 billion. Major altcoins like Ripple (XRP) and Ethereum (ETH) led the rise, while BTC moved less. In the top 100, the biggest losers are BitcoinDark (BTCD), down 63 percent, PRIZM (PZM), down 36 percent, and Primecoin (XPM), down 17 percent. The biggest winners are Electroneum (ETN), up 153 percent, XRP, up 102 percent, and Global Currency Reserve (GCR), up 58 percent. Although the rally was impressive, the bear market endures, and strong resistance likely remains ahead.
The author owns a small amount of BTC.