The first thing that Facebook cryptocurrency will face is the “near worry” that challenges regulation.

Summary:

This week, Bitcoin is back to the 7000-8000 US dollar range, and the market is in the adjustment stage. The details of Facebook's cryptocurrency plan are exposed, and its basic function is to open up the internal payment mechanism of the ecology. Temporarily let go of how to challenge the "foreign concerns" of industry competitors. How Facebook's cryptocurrency faces supervision is "near worry."

The media reported on the details of the Facebook cryptocurrency plan, and its basic function is to open up the internal payment mechanism of the ecology. Facebook has approached a number of financial institutions to raise $1 billion to provide a “basket” of global legal tender and low-risk bond guarantees for its stable currency, rather than linking to a single dollar to effectively prevent price volatility; On the other hand, Facebook is still in contact with a number of countries and hopes to try out its stable currency by working with the government. In addition, the company plans to deploy a cryptocurrency ATM so that users can exchange legal and traditional assets directly.

Temporarily let go of how to challenge the "foreign concerns" of industry competitors. How Facebook's cryptocurrency faces supervision is "near worry." The cryptocurrency industry has developed rapidly. The regulation of the US SEC and CFTC in this field has not yet been clearly regulated, resulting in constant friction between the regulation and the industry. There is still no substantive solution. Choosing to send money at this time, Facebook will also face greater regulatory pressure.

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We believe that the game between blockchain project entities and regulation is a hurdle to the development of the industry. This is related to whether the blockchain digital assets can become mainstream assets, and whether the industry can really create new Internet scenarios. The game is a good thing, and the result will eventually lead to a solid path for the industry.

Last week's market review: Chainext CSI 100 fell 12.5%, and the commercial finance performance in the segment was the best. From the perspective of subdivision, commercial finance, Internet of Things & traceability performance is better than Chainext CSI 100 average, -2.74%, -6.17%, AI, basic enhancement, pure currency, payment transaction, storage & calculation, basic The chain and entertainment social sectors underperformed the Chainext CSI 100 average of 9.51%, -11.14%, -11.15%, -11.69%, -11.83%, -14.11%, and -15.39%.

Risk warning: regulatory policy uncertainty, project technology progress and application landings are not as expected, and cryptocurrency-related risk events occur.

1. Hotspot tracking:

The first thing that Facebook cryptocurrency will face is the “near worry” that challenges regulation.

This week, Bitcoin is back to the 7000-8000 US dollar range, and the market is in the adjustment stage . The media focused on Facebook's cryptocurrency program details, including the possibility of raising $1 billion to secure its stable currency, and operators paying $10 million to become a node. While Facebook's cryptocurrency faces competitors in the industry such as USDT, how to challenge the SEC's regulation of cryptocurrency based on traditional securities specifications is another focus of attention.

The media reported on the details of the Facebook cryptocurrency plan, and its basic function is to open up the internal payment mechanism of the ecology. Recently, the latest details of the Facebook cryptocurrency program were disclosed to the journalist of the German financial weekly (WirtschaftsWoche) magazine by Laura McCracken, the head of financial services and payment partners responsible for the Nordic market. Laura claimed to have participated in the Amsterdam event in the Netherlands last Tuesday. I learned this after the Money2020 Europe conference and watched the speech of Facebook payment business executive Paulette Rowe. Although Laura McCracken did not join the secret blockchain team established by Facebook, she revealed that Facebook cryptocurrency has been confirmed to be linked to “a basket” of currencies rather than a single dollar in order to effectively prevent price volatility. Facebook encrypted goods will be released on June 18; The Information reported that Facebook has been in contact with a number of financial institutions to raise $1 billion to provide a "basket" of global legal tender and low-risk bond guarantees for its stable currency. . On the other hand, Facebook is still in contact with a number of countries and hopes to try out its stable currency by working with the government. Stabilizing coins are likely to continue to use "Libra" as the official name for their cryptocurrency.

Facebook wants to use cryptocurrencies to achieve zero-cost transfers on its products (including Facebook Messenger and WhatsApp), and they are working with multiple e-commerce giants and offline merchants to accept Facebook’s cryptocurrency payments and offer registration bonuses. . According to The Information, Facebook also plans to deploy a cryptocurrency ATM so that users can exchange legal and traditional assets directly. The media even reported that Facebook plans to supervise its cryptocurrency through an independent foundation, and it needs to pay $10 million to become a node operator, responsible for verifying Facebook cryptocurrency transactions and gaining network governance rights. Of course, node operators will also gain economic benefits. Not only that, but by introducing a degree of decentralization into the governance of this global monetary project, Facebook can avoid holding too much power. Other media also made relevant follow-up reports, but Facebook officially did not announce the plan, a communication manager of the blockchain team contacted the media to delete the news, and the official declined to comment on any information about its cryptocurrency project. In any case, Facebook's cryptocurrency is unfounded, and whether the launch of the project will be undecided on June 18, but Facebook's cryptocurrency details will only become clearer.

Temporarily let go of how to challenge the "foreign concerns" of industry competitors. How Facebook's cryptocurrency faces supervision is "near worry." In the past six months, there has been a constant friction between the regulation and the industry. Last week, Canada-based social software Kik launched an encrypted crowdfunding campaign to fund its possible court litigation against the US Securities and Exchange Commission's 2017 initial public offering (ICO). At this time, the industry has received great attention. Obviously, the US SEC has no clear norms on cryptocurrency regulation. The Commodity Futures Trading Commission (CFTC) is also confused about the regulatory flaws brought about by the rapid development of the cryptocurrency industry. In April, the New York State Attorney General filed a lawsuit against the state court that the cryptocurrency exchange Bitfinex and the stable currency operator Tether had misappropriated $850 million in funding.

In April, ICC inquired about the encryption startup TurnKey Jet, the US Securities and Exchange Commission (SEC) issued an ICO regulatory guide in a reply. According to the SEC, TurnKey Jet is required to provide and sell Tokens under certain conditions as required by the Securities Act and the Transaction Act, without registering them as securities, and the SEC Financial Department will not impose enforcement on the SEC; The conditions are extremely demanding, including the use and storage of coins are strictly idle. How the regulatory norms adapt to the development of the industry, it is clear that there is still no real solution to the current problem. Choosing to send money at this time, Facebook will also face regulatory pressure: currency function, circulation, storage, KYC, node funds compliance and a series of issues.

We reiterate our view that the game between blockchain project entities and regulation is a hurdle to the development of the industry . This is related to whether the blockchain digital assets can become mainstream assets, and whether the industry can really create new Internet scenarios. . The game is a good thing, and the result will eventually lead to a solid path for the industry .

2. Relevant news from governments:

The Japanese government proposes a policy to promote the development of technologies such as blockchain

At the "Future Investment Conference", the Japanese government proposed a policy to promote the landing of technologies such as blockchain. At the meeting, the government proposed a plan to introduce blockchain technology in the areas of content circulation, finance, and renewable energy. At the same time, the government encourages the use of sandboxed systems, including artificial intelligence, the Internet of Things, big data and blockchain, and the early commercialization of innovative technologies and business models to create innovative products and services. In order to significantly increase productivity, such technologies will be introduced based on relevant regulations.

Tianjin issued an action plan to increase the research and development of blockchain and other technologies. The Tianjin Municipal Committee of Network Security and Informatization officially released the "Tianjin Promotion of Digital Economy Development Action Plan (2019-2023)", which pointed out that it is necessary to develop intelligent pilot and pillar industries, increase research and development of intelligent science and technology, and increase New virtualization technology, key technologies of artificial intelligence, and core technologies of blockchain.

3. Industry chain related dynamics:

BTC miners' revenue fell by 14.9%

(The following source website data is updated to June 8)

Last week, BTC added 2.35 million new transactions, down 8.75% from the previous month; ETH added 6.04 million new transactions, down 3.7% from the previous month. Last week, the average daily income of BTC miners was 15.54 million US dollars, down 14.9% from the previous month; the average daily income of ETH miners was 3.54 million US dollars, down 6.62% from the previous month.

Last week, BTC's average daily computing power reached 53.1EH/s, down 2.7% from the previous month; ETH's daily average computing power reached 165.6TH/s, down 0.5% from the previous month.

Last week, the difficulty of BTC mining was 7.46T, which was 7.6% higher than the previous month. The next difficulty adjustment date was on June 14, the estimated difficulty value was 7.68T, and the difficulty increased by 3.1%. Last week, the average mining difficulty of ETH was 2.09T, unchanged from last week.

4. Last week's market review:

Chainext CSI 100 fell by 12.5%, with the best commercial financial performance in the segment

We introduce the professional index product of the token market, the Chainext CSI series index, in which the CSI 100 index [1] represents the overall trend of the market; the CSI 5 index [2] represents the trend of the market oversized currencies; the CSI 21-100 index [3] Represents the trend of small caps in the market. This week's market callback. As of last Sunday (June 9th), the Chainext CSI 100 index was 823.2, down 12.5% ​​from the previous week, and the total volume of 24 hours on Sunday was $11.05 billion. Among them, the average global price of BTC was $7688.08, compared with the previous period. The decline was 11.62%; the global average price of ETH was 233.09 US dollars, down 13.30% from the previous period.

From the perspective of subdivision, commercial finance, Internet of Things & traceability performance is better than Chainext CSI 100 average, -2.74%, -6.17%, AI, basic enhancement, pure currency, payment transaction, storage & calculation, foundation The chain and entertainment social sectors underperformed the Chainext CSI 100 average, 9.51%, -11.14%, -11.15%, -11.69%, -11.83%, -14.11%, -15.39%, respectively.

risk warning:

1. Regulatory policy uncertainty;

2. The technical progress and application of the project fell below expectations;

3. A cryptocurrency-related risk event occurs.

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