Crypto Week In Review: CFTC Dives Into Ethereum, Coinbase Integrates Paypal

As 2018 comes to close, a number of analysts expected a “Santa Claus” rally, whereas the crypto market would undergo a positive reversal in the holiday season. Yet, the value of Bitcoin, along with the altcoins it reigns over, has continued to suffer. Amid this market turmoil, this industry’s news cycle has also faltered, with discussion regarding promising product releases and institutional forays becoming a rare sight. Still, there remain many optimists that are hopeful for what’s to come in 2019.

CFTC Requests For Public Feedback On Ethereum, Altcoins

After over a year of hype surrounding Bitcoin (BTC) futures, as CBOE and CME launched contracts, and Bakkt unveiled plans for its own, a new contender is expected to enter into crypto’s alternative investment vehicle scene. This, of course, is Ethereum (ETH), which formerly sat at Bitcoin’s side as the second-most valuable capitalized cryptocurrency.

The U.S. Commodities Trading Futures Commission (CFTC) only confirmed these rumors in the past week, as the entity made a “request for information” to the public on the matter of alternative cryptocurrencies, namely ETH. The governmental regulator wrote:

“The RFI [Request For Information] also seeks to understand similarities and distinctions between Ether and bitcoin, as well as Ether-specific opportunities, challenges, and risks.”

It is believed that the CFTC is seeking public sentiment and comments to precede its ruling on an ETH-backed instrument, like proposed Ethereum futures backed by CBOE. Interestingly, not everyone is convinced that futures based on Ether will be beneficial for the asset. Tom Lee, for instance, told Business Insider that ETH futures will allow speculators to push the asset’s price lower, even if the contract isn’t physically-backed. Su Zhu, the CEO of Singapore-based Three Arrows Capital, echoed these concerns, issuing a poll questioning if the advent of such a product would aid ETH.

Bitcoin Friendly Square Cash Tops Apple, Google Play Store

Last Saturday, Miles Suter, a prominent Bitcoin commentator, divulged that Cash App, a mobile financial services application backed by Square, had become the #1 free application on Apple’s iOS App Store, a monumental accomplishment for any startup. Although this development isn’t exciting in and of itself, the fact that Cash App (Square’s Cash) natively supports the purchase and sale of BTC is undoubtedly a fact that struck a chord with crypto diehards worldwide.

Commenting on this surprising occurrence, Matt Odell, a long-time “Bitcoiner,” exclaimed that Square’s Cash, which has the stamp of approval from Twitter CEO Jack Dorsey, will be a primary catalyst behind Bitcoin’s growth in the years to come. Odell noted that the application, available throughout the U.S., is much more impactful on this budding market than a Bitcoin-backed exchange-traded fund (ETF).

Just days after Square Cash topped the charts of iOS, the popular fintech program gained on the standings of the Google Play Store, Android’s go-to location for applications and content. The Jack Dorsey-backed application purportedly became the most downloaded free finance-related application on the Play Store, due to a rapid influx of downloads. Square’s flagship product now sits in front of its most notable competitors — Venmo, ranked third on the same chart, and Paypal.

Facebook Bolsters Blockchain Division Amid Bear Market

Those familiar with the matter have told Cheddar, and up-and-coming, crypto-friendly business news outlet, that Facebook has been bolstering its blockchain division, even amid the dismal market downturn. The insiders claimed that nearly 40 employees, which consist of blockchain developers and former members of Paypal’s top brass, now work within the walls of the secretive initiative.

The Menlo Park-based social media giant doesn’t intend to cease its expansion efforts anytime soon, however. In recent months, as bears took hold of the cryptocurrency industry, Facebook reportedly shot representatives across the globe in a search for potential team members at industry events. Recruiters at Facebook Blockchain have also reportedly reached out to prominent crypto projects, specifically in an apparent bid to poach talent with potential.

Although while Facebook evidently means business with its blockchain foray, not much is known about the spoke’s inner workings and long-term ambitions. One source, who remains anonymous, reportedly told Cheddar that the company has intentions to launch a “decentralized digital currency,” but this statement could not be confirmed by NewsBTC. Still, while such a digital asset is undoubtedly an absurd plan, as it would have to operate efficiently at scale, multiple rumors have accentuated that a token could be in development at Facebook’s new arm.

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