What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
The European Central Bank (ECB) is continuing to press ahead with efforts to create a digital version of the euro. A working group recently published a comprehensive report on the possible introduction of a digital euro. The report weighs up the advantages and risks of a digital central bank currency (CBDC). The President of the European Central Bank, Christine Lagarde, in particular, has repeatedly spoken out in favour of a digital currency and underlined the importance of being prepared for its introduction.
The application range of the Blockchain is manifold. With the help of non-fungible tokens (NFT's), unique or limited objects can be represented on the block chain. If the represented item is digital, it makes things even easier. The National Basketball Association (NBA) recently launched Topshots, a new blockchain-based platform for "digital collectibles". Soccer also recognizes the advantages of the blockchain. In addition to the introduction of fan tokens, which have already been launched by a number of well-known clubs such as Juventus or FC Barcelona, digitalization in soccer is continuing to advance. Blockchain platform Sorare now wants to digitize football trading cards and put them on the Blockchain. Other types of sports are likely to follow.
With BitMEX, one of the largest crypto derivatives exchanges has come into the focus of the US-Justice. The indictment of the platform's founders includes the circumvention of money laundering regulations. The case is typical for a sparsely regulated sector, in which crypto exchanges sometimes operate exclusively for their own profit.
A new format is launched with the weekly review to ensure that the CVJ.CH audience is informed even more accurately about what is happening on the markets. From now on, every Tuesday, trend sectors, liquidity, volatility, spreads and other key figures will be examined in more detail.
Furthermore, the detailed monthly sector analysis shows us that the optimistic August was followed by a negative September. The September Sector Analysis provides a detailed breakdown of the various sectors and coins.
Selected articles in the weekly review:
Today, more and more people are turning to contactless payments. The European Central Bank is therefore pressing ahead with its work on the digital euro. In the next few weeks, internal tests with a CBDC are to begin.
The blockchain platform Sorare digitizes soccer trading cards and puts them on their bloc chain. The project is supported by prominent investors, including Christian Miele and football world champion Andre Schürrle.
Uncertainty is causing market participants to prefer to move digital assets to safe havens such as cold storage or regulated exchanges. Patrick Heusser examines similarities between the Bitcoin March Crash and the BitMex case.
Weekly market observations compact in our new format: Two volatility-causing news events, declining trading volume, inverse Bitcoin/USD correlation, high BTC/US stock market correlation.
An optimistic August was followed by a negative September. The FTX indices ALT (-17.5%), MID (-23.3%) and SHIT (-24.4%) corrected accordingly. Nevertheless, there were surprises within the sectors.