Current State of The Crypto Market (July 10th, 2019)

Hackers:  Cryptocurrency exchange Coinbase is in talks to set up its own regulated insurance company with the help of insurance broker giant Aon.  Coinbase and Aon see this structure as potentially part of the answer to the shortage of insurance available to crypto exchanges, the sources said. While Coinbase has obtained more coverage than most, often exchanges just self-insure by setting aside a bunch of coins to cover losses in the event of a hack or disappearance of customer funds. The problem with that approach is its lack of a formal structure, creating the temptation to access the funds for other purposes and ambiguity about how much coverage a firm actually has.  Neither Aon nor Coinbase would comment on the latter’s interest in captive insurance. However, Aon did say that it established the industry’s first crypto captive earlier this year for an unnamed client. This Caymans Islands-based captive will write “crime” policies covering hacks of hot wallets and “specie” coverage for cryptocurrency kept offline in cold storage, the broker said.

Bullish Key Players:   Today Bitcoin price has moved back up, breaking through resistance at $11,700 to hit a July high of $12,750 during Asian trading session this morning. The big move started a few hours ago and this has lifted the total crypto market capitalization value up as BTC dominance surged to 66%. Altcoins are still slumbering but many of the Taipei event attendees were confident that this would not be the case for much longer. When asked about volatility, Hayes added that there is likely to be quite a lot putting his Bitcoin price prediction between the $10,000 and $20,000 levels, this would be good for trading naturally as price does not move in a straight line. He made the point that those wanting to avoid volatility would be better trading the S&P500.  Next, it was Changpeng Zhao’s turn in the spotlight. The Binance boss got straight to his products, the DEX, crypto futures, and IEOs. He added that adoption was so much faster than he expected, and margin trading possibly to rival BitMEX, will soon follow as may derivatives.

Banks & Institutions:  Facebook’s David Marcus on Tuesday responded to questions from the U.S. Senate Banking Committee, saying the company needs governments, central banks and regulators involved to properly launch its Libra cryptocurrency.  “We understand that big ideas take time, that policymakers and others are raising important questions, and that we can’t do this alone,” Marcus said in a letter to Senate Banking Committee. Marcus is the head of Facebook’s Calibra digital wallet that will be used to store Libra. He is set to testify before the committee on July 16. The House Financial Services Committee will hold its own hearing focused on Libra on July 17.

Adoption: Ride-sharing giant Uber has taken another step towards blockchain with news today that its healthcare subsidiary, Uber Health, has granted access of its entire American fleet to Solve.Care, a startup using the ethereum blockchain to connect nearly every aspect of the healthcare ecosystem via a shared ledger of transactions.  When the service goes live later this year, Solve.Care’s clients will not only be able to schedule doctor’s visits and book rides to healthcare care appointments, but they’ll also be able to pay for the services using either of the company’s native tokens, representing the first time any Uber subsidiary has opened up its doors to a company using cryptocurrency.