Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Facebook Stablecoin rumors go rampant again
- Bitcoin Cash rise indicates something is brewing
- “Token Taxonomy Act” Bill excludes cryptos from the definition of securities
Is Facebook actually creating its own cryptocurrency?
Well, the media has been all ripe again with a Bloomberg news piece that reported that Facebook may be introducing its own cryptocurrency for WhatsApp transfers. But is it actually happening is something that’s been doubtful? Speculation about some sort of FaceCoin has been rampant since May when they appointed one of their senior officers to head up a new “blockchain initiatives” department. Those rumors seem to have now been reinforced by this today’s Bloomberg article. The problem with the article is that Firstly, the article is based largely on quotes from “people familiar with the matter,” which is never a good sign when looking for factual information. Secondly, the article later quotes an actual spokesman for the company who was extremely vague about what the team is doing, stating that they’re looking into a lot of different things and “we don’t have anything further to share at this time.”
Also, the choice of starting off in India strikes a little odd. As someone who’s been watching the Indian payments space very closely over the last two years, there could not be a more difficult market for a new competitor to enter, especially a company like Facebook.
What’s happening with BCH?
Since the time crypto market has bounced back in green, BCH has just been greener making this the most astonishing aspects of the recent crypto bull run. This spinoff of Bitcoin has somehow managed to rise 198% from its lows on Monday to the highs today.
The original assessment, as was famously quoted, was that the entire rally until now has been a factor of short covering. But for BCH it looks like there is something else must be going on behind the scenes. There have been several theories in the market floating with respect to this rise and range from ‘outright manipulation’ to ‘pump and dump’. But the most interesting one of all is the theory that revolved around liquidity.
None of these theories look convincing enough on a standalone basis and this rise looks a combination of many factors together. One will have to although keep an eye on whether there is an actual shift in sentiment with BCH going from one of the most unpopular coins to being the favorite in such a short time cause there are still a lot of people in the market blame the Bitcoin Cash hard fork, for the recent declines in the market.
Among other news, Lawmakers in the US are planning to introduce a new bill known as the Token Taxonomy Act which plans to keep coins and tokens outside the definition of securities. Of course, this is just a bill and it still needs to go through a lot of red tapes before being signed into law. However, it is comforting to know that Congress is getting on top of this hot-button issue.