(1) Cryptocurrency prime dealer SFOX had their largest fundraising round to date, completing a $22.7 million Series A led by Trading Capital and Social Capital. Digital Currency Group and Airbnb co-founder Nathan Blecharczyk also got in on the action, whose contributions will go towards the development of an institutional crypto management platform.
SFOX offers black boxed algos for heavy hitters. Since their launch in 2014, they’ve handled north of $9 billion in transaction volume. SFOX’s nine products are optimized by market condition (verbatim “When To Use” suggestions included), so branching into custodial services to retain their broad addressable market sounds like a heads up play.
As an added bonus, the algo names are rather catchy (emojis not included):
- Polar Bear: Stealth execution
- Tortoise: Slow, small trades
- Sniper: Hidden, fast orders
- Gorilla: Large orders
(2) Swarm released a prospectus for Robinhood Equity Token (RHET), security tokens that will allow accredited investors to gain exposure to changes in Robinhood private share prices.
Private company shares are typically out-of-bounds for the public, but Swarm seems to have found a workaround.
- Obtain private shares via secondary acquisitions.
- Launch tokens that track value of said shares.
The investment platform entered the limelight in June after revealing its plan to tokenize shares of Coinbase and Ripple. However, given that both companies were wiped from Swarm’s site, we’re not sold that the pseudo shares won’t disappear quietly into the night as well. 83 days left in the investment window should give Robinhood plenty of time to work the legal tightropes.
(3) Blockchain startup TenX unveiled a new design for their proposed crypto debit cards. While there’s no denying a fascination for fresh decals, we question whether the announcement is anything but a smoke and mirrors play.
After all, TenX hasn’t exactly delivered in the past – the company has been promising a product release since Q1 2018. And tic-toc doc… the end of Q3 isn’t far off. Larry Cermak chews out TenX here, embellishing their lack of execution despite raising $80 million last June and achieving minimal progress with obtaining a license.
In hindsight, are ICOs starting to look like a bad idea? Sure, they opened up investment opportunities to the public at large and shortened the window for capital raises, but there was never any obligation to report financials or ship actual products.
It’s not as if all projects are taking advantage of the oversight gap, but we’ve witnessed the fallout from those that are in recent months.
- 2.7 million stores accept digital currencies through Coinbase Commerce.
- SegWit-spending payments broke 42% – a 6.6% boost since August.
- China swung the ban hammer, revoking WeChat access for blockchain media accounts.
- Tencent followed SoftBank, denying any involvement with Bitmain’s IPO.
- 0xfair put rock-paper-scissors on the blockchain – check it out here.
- 5 min read: The Fundamental Assumptions of Cryptosystems (Nathan Chen)
- 5 min read: Security Tokens Don’t Solve The Regulatory Mess of Utility Tokens (Petros Ring)
- 6 min read: Security Token 2.0 Protocols: Debt Tokens (Jesus Rodriguez)
- 10 min read: The Cryptonetwork-and-City Analytical Approach (Mosaic)