(19-Oct-20) This Week in Crypto:
Filecoin, Derivative Regulations, & VC Investments
Decentralised storage network, Filecoin, has finally launched its Mainnet after 3 years of development. Back in 2017, Filecoin ran one of the largest Initial Coin Offerings (ICOs) during the crypto hype cycle that was taking place way back when. Built upon InterPlanetary File System (IPFS), Filecoin allows users to charge for unused storage space using the network’s native cryptocurrency, filecoin (FIL). The team have reported that over the past 4 weeks, over 400 miners across 34 countries have onboarded 325+ PiB of storage capacity onto the Filecoin network - enough space to record the entire written works of mankind 7 times over! This is a first for decentralised storage networks and it is to be seen if trustless storage of this sort will rival the Google and Amazon’s of the world.
During the third quarter of 2020, The Block reported that nearly $900 million in VC funding went to crypto companies during Q3 of 2020. This funding was split over 212 crypto and blockchain startups with early-stage and seed deals being the most common deal type. The average deal size for early-stage startups was $7 million while seed deals averaged $2.1 million, aggregating a respective 30% and 12% of the investment total for the quarter.
A few weeks back the U.K.'s Financial Conduct Authority (FCA) issued a ban on the sale of crypto derivatives and exchange-traded notes (ETN) to retail investors. The official Policy Statement claims that “retail consumers can’t reliably assess the value and risks of derivatives […] and exchange traded notes” due to a number of reasons which can be viewed on the document itself. Interestingly, the FCA does not seem to provide any compelling evidence to support their claims, perhaps implying a deeper held disdain for crypto assets. Noelle Acheson of Coindesk argues that the ban is an overly paternal extension of the FCA’s remit and that sadly we see here “exactly the type of unreasonable centralized control that crypto assets were created to circumvent.”
This Week’s Top Crypto Conversations:
OKEx suspends withdrawals for authority investigation:
Vega’s Tamlyn Rudolph’s Tweetstorm on her talk at Liquidity 2020:
Jake Chervinsky’s summary on recent regulatory & enforcement news in crypto:
DeFi Pulse on the astounding growth of DeFi:
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