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Crypto SWOT: Ether off to a blazing start this September

Commentaries & Views

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Presearch, rising 579.27%.

  • Asset manager Franklin Templeton is increasing staff to execute trades for Bitcoin and Ether, writes CoinDesk, according to a series of job postings. According to the listings, at least two crypto-focused jobs were posted this week – one trader, one researcher – to join the growing investments team within the company's Digital Assets Management division.

  • Japanese financial conglomerate SBI Holdings is aiming to launch the country's first cryptocurrency fund by the end of November, writes Bloomberg, aiming to give individual investors a way to diversify their broader portfolio. According to the article, investors may need to put in a minimum of roughly 1 million yen ($9,100 USD) to 3 million yen ($27,360 USD) and it will primarily be aimed at people who understand risks associated with cryptocurrencies, such as big price swings.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Liquidity Dividends Protocol, down 99.63%.

  • Ever since John Paulson bet against the U.S. housing market more than a decade ago, people keep asking him about his next big trade, writes Bloomberg. His harshest words, the article continues, are for the hottest investments of this era. SPACs, on average will be a losing proposition, while cryptocurrencies are a bubble that will "eventually prove to be worthless," according to Paulson.

  • Federal regulators sued the founder of crypto exchange platform BitConnect, reports Bloomberg, for fraudulently raising more than $2 billion from investors in an offering that wasn't registered with the U.S. SEC. A complaint filed this week in federal court in New York shows that the SEC sued founder Satish Kumbhani and a promoter for improperly selling securities tied to the company's purported "lending program" for about a year starting in January of 2017.

Opportunities

  • As reported by Bloomberg, FTX.US has agreed to acquire LedgerX for an undisclosed sum, a move that will expand the crypto exchange's product offerings to futures and options trading in the U.S. "Our longer-term expansion strategy is for FTX.US to offer a wide array of asset classes in regulated markets, and this is our first major step in that direction," said Brett Harrison, president of FTX.US.

  • Ether is off to a blazing start in September, writes Bloomberg, breaking $3,700 intraday on the first of the month and after logging a 36% return last month. The popular digital currency may be running a bit hot, however, as it continues to outperform Bitcoin in a big way this year. The crypto crossed into overbought territory on Monday, the article continues, indicating that investors should be aware of a potential pullback.

  • Solana (SOL) started Friday at a new record high, reports CoinTelegraph, as investors continued to bet positively on its success in the DeFi and nonfungible tokens (NFT) sector. "The growth of Solana to $146.28 is steered positively by the increasing demand for the tokens for use in minting thousands of NFTs being launched on the Solana blockchain," Yuriy Mazur, head of data analytics at crypto exchange CEX.IO told CoinTelegraph via email this week.

Threats

  • Retirees and veterans living in El Salvador are worried that the government will start paying their pensions in Bitcoin instead of the U.S. dollar, writes CoinTelegraph. The country's anti-Bitcoiners have expressed discontent regarding the government's plans to adopt the popular digital currency as legal tender, (retirees in particular) voicing their concerns over its unstable price. "We know this coin fluctuates drastically. Its value changes from one second to another, and we will have no control over it," Stanley Quinteros, a member of the Supreme Court of Justice's workers' union said.

  • Former chief U.S. commodities regulator Cristopher Giancarlo ("Crypto Dad") has resigned from BlockFi's board of directors after four months, reports CoinDesk. His unexpected departure comes at a critical juncture for BlockFi, as the company faces mounting legal pressure over its flagship interest-bearing crypto accounts. According to the article, multiple U.S. states alleged in July that the company's flagship BlockFi Interest Accounts (BIA) were unregistered securities, including regulators in BlockFi's home state of New Jersey.

  • Russian cybersecurity firm Kaspersky has detected more than 1,500 fraudulent entities targeting potential crypto investors and miners just in the first half of 2021, writes CoinTelegraph. The firm's research shows that 0.60% of users from South African countries have already been targeted by malicious crypto miners. The most common methods of duping users, the article continues, involves false advertisements claiming to sell mining equipment and fake websites posing as crypto exchanges.
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