Timely links to external news and articles, usually valuation related, with occasional commentary.
Over six days last August, one crypto wallet amassed a stake of $360,000 worth of Gnosis coins, a token tied to an effort to build blockchain-based prediction markets. On the seventh day, Binance—the world’s largest cryptocurrency exchange by volume—said in a blog post that it would list Gnosis, allowing it to be traded among its users.
Token listings add both liquidity and a stamp of legitimacy to the token, and often provide a boost to a token’s trading price. The price of Gnosis rose sharply, from around $300 to $410 within an hour. The value of Gnosis traded that day surged to more than seven times its seven-day average.
Four minutes after Binance’s announcement, the wallet began selling down its stake, liquidating it entirely in just over four hours for slightly more than $500,000—netting a profit of about $140,000 and a return of roughly 40%, according to an analysis performed by Argus Inc., a firm that offers companies software to manage employee trading. The same wallet demonstrated similar patterns of buying tokens before their listings and selling quickly after with at least three other tokens.
The jury is still out on whether or not blockchain is usefull technology that will someday lead to differentiated and genuinly useful consumer products/experiences. I am highly dubious, and certainly no 'killer app' use case has yet presented itself. What is absolutly undeniable is that cryptocurrency as it exists today has only been useful as a means of transfering wealth from people who want to get-rich-quick over to scumbags, profiteers, and criminals.