This Week in Fintech ending 11 September 2020
This weekly summary from our experts, brings you insights based on their experience as investors, entrepreneurs & executives, on this historic/infamous day known as 9/11.
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Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote Launch a token, raise cash. Does that still work?
In a podcast with Patrick O’Shaughnessy, Coinbase’s CEO Brian Armstrong confirmed that the cryptocurrency exchange is developing a platform to help startups launch their own tokens. Talking about the planned product, Armstrong said: “We’re working on a product; we’ll probably call it Coinbase Launch or something like that. It’s a way for anybody who wants to do a crypto startup to come in and say, ‘All right, I want to issue a token. Maybe I want to raise money. Maybe I just want to use it to build my community.” But unlike token sales in 2017, today the norm is for token sales to be conducted through an exchange. As the price of Bitcoin is going up, it looks like token sales are picking up steam once again. For better or for worse, it looks like 2017 is back.
Editor note: Who would have thought Token sales would make a comeback? Read this post to understand why they might return and, if they do, in what form.
Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Will Offshore on Thames (London) become the Fintech capital of the world?
I am a Brit, but I have lived all over the world and now call Switzerland home. I think Brexit was a mistake; but as an entrepreneur I work with the reality of what is rather than the hope of what could have been.
Money goes where it is welcomed and in a world of justifiable populism leading to both more trade barriers and higher taxation, money is looking for a welcome mat.
Editor note: Read this to understand the forces driving jurisdictional competition for tomorrow’s great Fintech success stories.
Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser, founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote DeFi and its two core attributes
MakerDAO was the dominant player in the DeFi market for a long time. It was a lending protocol with two tokens, a stablecoin coin pegged to the USD (DAI) and their protocol token (MKR).
These were the days that the entire amount of Ethereum locked in Defi protocols was c. $500,000 (c. March 13, 2020). And then suddenly, the explosion of Defi tokens was upon us. Last year in September Ilias Hatzis wrote `DeFi will eat traditional finance and dramatically expand the global lending market`. He reported that Celsius, lending rates were 10+%, Bitcoin.com in partnership with Cred also offered 10+% on BTC and BCH; Binance lending (centralized) offered 15% to BNB token holders for their ETH and Tether holdings. At the time, Celcius and Nexo were the rising stars of the centralized lending cryptocurrency space and Uniswap, MakerDao were in the decentralized space.
Editor note: Defi is creating a new financial system from scratch in the crypto world. That sounds weird to most people. Efi explains in plain English why it is so powerful.
Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 9th September.
This weekly snapshot is the news that matters in the Stablecoin market.
Friction in daily customer transactions has been diminishing. Regardless of whether they are at work, home or on the go, customers connect to digital ecosystems to fulfil needs. Globally, insurance customers tend to have similar preferences for connected services. They need safety, prevention, convenience and rewards for good behavior. Since they are accustomed to receiving tailored online experiences, they expect that insurers will know who they are, what they need and when they need it. This tailored online experience requires an ecosystem that can provide a gamut of services.
Editor note: Analog markets work on vertical integration controlled by one company. Digital markets work on technology stacks and ecosystems of companies who both cooperate and sometimes compete. Being an ecosystem leader is difficult but the upside is huge.
Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL News: BIS on regtech, 2021 SEC taxonomies and big data for credit
Editor note: This weekly snapshot is the news that matters in the XBRL market.
After 2008, in the central bank liquidity driven bull market, stock picking went out of fashion. As the market always went up due to stimulus aka money printing, the simple winning mantras were “don’t fight the Fed” and “buy the dip”.
My thesis is that this will change in the not too distant future: if I knew precisely when I would buy yachts with my spare change.
The divorce between stock market and real economy has been well documented. The stimulus driven boom gives us a stock market above its pre pandemic highs while we have Depression era levels of unemployment and a major health crisis that a) costs a lot of money and b) changes consumer behaviour.
Editor note: Fintech changes the game. You have to understand the technology that drives the market aka Fintech to understand the macroeconomic cycle.
Howard Tolman, a well-known banker, technologist and entrepreneur in London wrote: Alt Lending: American Banks as agents of Social Change?
This weekly snapshot is the news that matters in the Alt Lending market
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