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Gaps in Dapps

Last week Ethereum creator Vitalik Buterin voiced the opinion that “there is no chance that the cryptocurrency space will see 1000x growth again” as the market expectations have shifted from the growth in blockchain awareness to focusing on building real-life applications that are powered by blockchain.

In other words, investors are becoming more rational and a highly promising idea without a working product will not attract as much capital as a creditable project with a real-life working product. This is clearly visible in the virtual shutting down of the ICO markets over the past few months. ETH itself has been dragged down by a number of factors, and if panic selling by projects dumping their ETH gains scale, that could, in our opinion, have a significant impact on ETH prices, taking it down into two figures even, something that has not been witnessed since May 2017.

Against a backdrop of surging valuations for centralized applications (Google, Facebook, etc.), decentralized applications are lagging behind both in terms of UI/UX and the number of users, although one drives the value of the other. As we opined in one of our past issues, the future for decentralized applications rests on creating new markets that were previously unconceivable in a centralized world, and not by trying to become the decentralized Facebook or Twitter or Google or Uber.

Meanwhile in Crypto Wonderland….

“Uzbekistan legalises cryptocurrency exchanges” Uzbekistan joins Japan and Philippines in legalising crypto exchanges and building frameworks for their regulation. The state said that it will not treat cryptocurrencies as securities and hence cryptocurrency exchanges will not be subject to the laws that govern securities exchanges. The government, however, clarified that crypto exchanges will be regulated under a new set of rules, referred to as special normative acts.

“Grayscale is investing in a new privacy-focused cryptocurrency” Digital Currency Group’s subsidiary Grayscale Investments, which operates the popular Bitcoin Investment Trust in the US, has reportedly invested in a privacy-focused platform called Horizen, a platform that hosts a cryptocurrency called Zen. Greyscale’s investment in the less popular cryptocurrency comes as a surprise to many as the company previously invested only in cryptocurrencies with higher valuations such as Bitcoin, ZCash, Ethereum Classic, etc.

“SEC suspends trading of two crypto exchange-traded funds” The US regulator has suspended the trading of Bitcoin Tracker One and Ether Tracker One, which are exchange traded instruments issued by Swedish XBT Provider AB. The SEC cited “ a lack of current, consistent and accurate information” which leads to confusion among market participants.

“Payment Processing Startup adds all of its clients to Lightning Network” The lightning network is getting a significant boost with the recently announced adoption from payment processing startup CoinGate. The Lightning Network creates a layer on top of the bitcoin blockchain, where transactions can be passed back and forth before being added to the underlying blockchain.

“KuCoin invests in Bitcoin Australia” Singapore-based cryptocurrency exchange KuCoin invested $3 million in Australia’s local exchange Bitcoin Australia. The JV is expected to be synergistic as it helps KuCoin’s plans to penetrate into Australia, as well as expanding Bitcoin Australia outside of the country.

Crypto Twitter Pick

What We Are Reading / Listening To

The Ying and Yang of Bitcoin by LaurentMT

A Financial System built on Bitcoin  featuring Arjun Balaji

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