Crypto SWOT: Blockchain gaining traction in the mainstream

Strengths

• Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was UNIDOWN, rising 9,858,179%.
• Cardano’s ADA Token is now the world’s third largest cryptocurrency, writes Bloomberg. The token has rallied over 50% amid booming DeFi demand and comes in as the largest cryptocurrency right behind Bitcoin and Ethereum.
• The Economic Times reported this week that India has been ranked second in terms of cryptocurrency adoption, amid a bull run in cryptocurrency assets globally this year. A new report from Chainalysis shows that worldwide crypto adoption grew over 881% in the last year, and countries in the emerging markets sector led ahead of the U.S. and European nations, driven by peer-to-peer platform trading.

Weaknesses

• Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Bitcoin Networks, down 97.59%.
• According to a statement distributed to Australian investors by the Australian Securities and Investments Commission (ASIC), many investors have experienced significant losses after trading cryptocurrency financial products such as options, futures, and leveraged tokens. Many of these can be attributed to “excessive leverage, platform outages, or unfair liquidations.” Due to this information, the regulator is now issuing warnings about unlicensed entities that offer these financial products as they gain in popularity.
• Poly Network, the China-based blockchain protocol exploited earlier this month for more than $600 million, said on Thursday that it sent a bounty worth nearly $500,000 to the attacker, reports CoinDesk, and that most of the looted cryptocurrency has now been fully recovered. Unfortunately, the attacker has yet to provide the key needed to unlock the remaining $141 million.

Opportunities

• Walmart Inc. is looking to hire a cryptocurrency expert to develop a blockchain strategy, writes Bloomberg, joining a growing number of major corporations exploring the feasibility of digital currencies like Bitcoin or Ethereum. According to the posted job description, the position will be responsible for “developing digital currency strategy and product roadmap,” and identifying “crypto-related investments and partnerships.”
• HIVE Blockchain Technologies, a public mining company listed on the Nasdaq (HVBT) and Toronto Venture (HIVE) exchanges, announced the appointment of Aydin Kilic as President and Chief Operating Officer of the company this week. Mr. Kilic, who founded Fortress Blockchain Corp. in 2017, will now oversee all of HIVE’s operational activities across its facilities in Canada, Iceland, and Sweden. In the U.S., a top regulator signaled a path towards approval for Bitcoin ETFs. ProShares, Investco, VanEck, Valkyrie Digital Assets, and Galaxy Digital have all filed plans for Bitcoin futures ETFs. Last month, the SEC approved the first U.S. Bitcoin-futures-based mutual fund, which is currently up and trading.
• Jack Dorsey, CEO of Square Inc., and Facebook’s Mark Zuckerberg may be making big plans in the cryptocurrency space, writes Bloomberg, but Ethereum inventor Vitalik Buterin is skeptical if they can gain traction. Buterin casts doubt on Dorsey’s plan for the company to create a new business focused on decentralized financial services that use Bitcoin. As seen in the chart below, Ethereum currently outperforms both Square and Facebook. Time will tell if the opportunity still exists for these names.

Threats

• The Chinese central bank’s branch of Shenzhen ordered almost a dozen companies operating in the technology hub to remedy illegal activities related to cryptocurrencies, according to Bloomberg, signaling an intensifying crackdown on digital assets. The People’s Bank of China (PBOC) “cleaned up” 11 firms allegedly involved in illegal activities. China has launched a new campaign against cryptos this year, the article continues, acting against miners and imposing curbs on crypto banking services and trading.
• Japan’s Liquid Global exchange tweeted on Thursday that it has been hacked, reports CoinDesk, and has suspended both deposits and withdrawals. The exchange said that its warm wallets were compromised and that it was moving digital assets offline. Senior researcher at OKLink, Eddie Lang, told CoinDesk that the value of coins stolen could be upward of $90 million.
• Binance, the world’s largest crypto exchange, is still on the quest for legitimacy in the United States, writes the New York Times, pursuing an IPO of its American unit. Unfortunately, after only three months on the job, CEO of Binance Brian Brooks left the company due to “strategic differences.” Brooks, a former regulator, was tasked with helping the company gain a U.S. footing, the article continues. He left following a venture capital investment he was putting together for Bianance.US that fell through.