This Week’s Topics:
1) Ethereum gas costs hit highs as network traffic rises
2) Crypto.com refunds customers as Wirecard folds
3) Filecoin aims for August mainnet launch
|TradeBlock Index||Asset1||Price ($)||7d∆2|
|1. Underlying asset sorted in descending order by 7 day price movers.|
|2. 7 day price movers monitored from 06/22/2020 06:00 ET thru 06/29/2020 06:00 ET.|
7 day price movers
Digital currencies traded flat to down on the week. Among our indexed currencies, ZCX traded down the least, losing 0.24%, while XLMX traded down the most, losing 10.21%. In traditional markets, US equities ended the week down more than 2.5%, while US treasury yields fell as investors sought safe haven assets.
Ethereum gas prices hit highs as network traffic rises
The average gas fee paid in Ethereum transactions is near recent highs as activity on the platform has risen in recent months. As we reported last week, with the growth in new decentralized finance applications (DeFi), congestion in the Ethereum network has risen.
Ether, Ethereum’s native token, is required as payment in order to complete transactions across the network. As such, as the demand for transactional activity across the Ethereum network rises, so does the demand for ether. With the rise in DeFi apps, majority of which are built on Ethereum, ether gas fees hit recent highs, meaning transaction costs across the network have risen in order for timely transactions to occur.
Alongside the rise in ether gas costs, the amount of ether collateral deposited across DeFi applications has reached a recent high. Just over 3 million ethers are deposited in DeFi applications, just shy of the nearly 3.3 million deposited in DeFi earlier this year–which represented an all-time high.
Crypto.com refunds customers as Wirecard folds
Crypto.com is refunding customers’ funds following the insolvency announcement from Wirecard Group. Last week, the CEO of Wirecard was arrested on fraud charges as the company admitted to “missing” more than $2 billion. The initial uncovering of Wirecard’s misappropriated activities occurred when Wirecard’s financial auditor, Ernst & Young, refused to sign off on the company’s 2019 fiscal year results and said the company made “false confirmations and statements with regard to escrow accounts” in 2019. Further, EY stated that Wirecard engaged in “an elaborate and sophisticated fraud, involving multiple parties around the world in different institutions…”
On Friday, the UK Financial Conduct Authority ordered Wirecard to cease operations in the interest of consumer security. The order initiated on Friday is said to affect all cards issued by Wirecard Card Solutions, including those belonging to the well known digital currency company, Crypto.com. In a statement to Coindesk, Crypto.com’s CEO said that all customer accounts would be completely refunded. Crypto.com operates in a number of activities including maintaining its own digital token, which at time of writing, had a market cap of more than $2 billion.
Filecoin aims for August mainnet launch
Filecoin’s long awaited token distribution appears to be under way with the platform behind the project aiming to distribute tokens to investors after its mainnet launch in August. The initial token listing and distribution platform, Coinlist, is conducting the Filecoin distribution.
Filecoin raised more than $200 million in an initial token sale in 2017, but has yet to distribute tokens from the sale. The token sale, conducted by Coinlist, had more than 2,000 accredited investors from 50 countries. Since this time, the project has been under development with its mainnet launch delayed on multiple occasions.
Filecoin was one of the largest token sales ever and received widespread interest from the digital currency investment community. Filecoin’s objectives are to decentralize the file storage space with users directly selling/buying unused storage space in an open market.