Weekly Update #9: Bitcoin Fall, Bakkt And Libra Once More

Dominik Olech
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Another week in crypto has passed, with some interesting events within. Probably the most significant one was a major drop in Bitcoin’s price and Bakkt start, but some other news are worth to mention too.

Libra’s currency basket

We couldn’t have our Weekly Update without Libra. After all, new info about Facebook’s coin is continuously appearing. This time, news concerns the percentage of global fiat currencies, which will be included in Libra’s “basket.”

So, what are our, let’s hope, lucky numbers? David Marcus, a father of Facebook blockchain, has already told us that half of the reserve will be backed in U.S. dollars. But now, according to Der Spiegel, the rest will be as follows: 18 percent of the euro, 14 percent of the Japanese yen, 11 percent of the British pound and, last but not least, 7 percent of Singapore dollar.

Reuters points to the lack of Chinese yuan, one of the most valuable currencies. It might aim to help the position of Libra on the U.S. market, which government concerns about the growing importance of the Chinese economy.

Central banks in the world of digital coins

Libra ongoing case also has an influence over the banking sector. According to Mark Cliffemight, ING’s chief economist, the incoming Facebook’s cryptocurrency will force central banks to issue their own digital currencies within 2 or 3 years.

According to his words, central banks need to adjust to the new situation. Adapting new technology will give such institutions a variety of new policy options and help to stay relevant players in the incoming future.

Unimpressive launch of Bakkt

Bakkt is a project in which many people have put their fate. This futures exchange is meant to attract new investors into the cryptocurrency world, with Bitcoin as a new target for institutional investment. But when the platform had been launched on September 23rd, it didn’t perform very well. 

Bakkt offers two types of physically-backed futures contracts: monthly and daily. During the first hour, only 5 contracts have been traded. Moreover, the first of daily contracts, which were believed to be the main force of the Bakkt, was sold only after 18 hours after launch.

After all, Bakkt reached only $5.8 million in trading volume in the first week. Nevertheless, some people still believe in the project. For example, the crypto analyst Joseph Young:

Bitcoin falls at the beginning of the fall

The rough start of Bakkt is believed by some people to be the reason for another important event of the last week. For the first for quite a time, the Bitcoin has dropped significantly over the last seven days. In the first moment of the decrease, the price decreased by $1,000 in only 30 minutes.

But the connections of such events with Bakkt are highly unreal. According to CoinDesk, the price fluctuations came from “margin calls and contract liquidations on Bitmex.” But no matter what caused the situation, it was a clearly unexpected event.

$2.5 million for a crypto shopping app

Despite its undeniable importance in the modern economy, Bitcoin is still far from being comfortable to use as a payment measure. But there are exceptions. One of them is Fold App, a lightning-focused app allowing to spend bitcoins for daily shopping and acquire crypto rewards for such actions.

According to CoinDesk, the app has just raised $2.5 million for further development. Those funds are meant to improve the connections with retailment sector. One of the new features will allow using fiat currencies within the app, which reward with additional bitcoins. Fold App is also trying to reach better cooperation with lightning technology. As for now, it supports two lightning-friendly wallets, BlueWallet and Breez.

That would be all for this week’s update. Stay tuned for more news!

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