Crypto Newsletter 1/23: At Last: tZERO to Launch Next Week
Joey Krug’s “A Crypto Thesis” has been making the rounds in crypto newsletters this week, and after finally reading it myself, I would be remiss to exclude it from this newsletter as well. Krug, who spoke at the StartEngine Summit in April 2018, delivers a well-thought blog post that discusses the creation of open financial systems that isn’t nearly as interesting as the fundamentals Krug goes into next.
In Krug’s eyes, the adoption problem blockchain is facing can be attributed to three fundamental problems: infrastructure, scalability and fiat on-ramps. He then compares crypto as an industry to biotech: biotech companies spend years in R&D working on new drugs that could change healthcare, but until that drug is released to market, biotech stock prices could swing dramatically as market confidence wavers.
Blockchain tech, Krug argues, is no different in that companies are building products that won’t be fully realized until 5-6 years later, a very different timeline than traditional software. The engineers working on these problems are just getting started, and the problems themselves are immensely difficult.
The piece is too long to summarize in full: Krug then goes on to discuss everything from scaling solutions, on-ramp solutions, his own investment thesis, and more. Krug also spends a lot of time highlighting companies in his portfolio, but when he’s providing so much insight for free, who can blame him?
What’s Happening In the News
Overstock.com’s security token trading platform tZERO will go live next week, according to CEO Patrick Byrne, a culmination of four years of work.
Two executives from South Korean crypto exchange Komid were sentenced to jail time for faking trade volume on the exchange. Komid’s CEO received a three-year sentence.
Crypto exchange Huobi received its license from Japan’s Financial Services Agency (FSA), following its merger with BitTrade, to become a fully licensed trading platform for crypto assets.
Articles We Read (And You Should Too)
In an article for the Harvard Business Review, Andrew Burt discusses how technology is changing our relationship with privacy, particularly the lack of security with that technology. Burt doesn’t touch on blockchain in the piece, but it looms as a specter behind it. Could blockchain be the solution?
Fred Ehrsam, co-founder of Coinbase and now an investor in the space, provides a useful overview of governance mechanisms for Bitcoin, Ethereum, Tezos, and DFINITY, before imagining the next generation of governance structures. An oldie, but a goodie.