TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. G7 releases global stablecoin warning report aimed at Facebook Coin Libra. Tether trading booming in China. NextHash group to use SLP to issue security coin. Ethereum co-founder says they “underestimated” the community. Booking Holdings also leaves Libra, and almost 50% of issued tether are now on the Ethereum blockchain.
G7 Releases Global Stablecoin Warning Report
A G7 sponsored task force released a report on Libra-like global stablecoins, warning of their possible effect on world economies. The report, that has been taken as another blow to the Facebook Coin project, states the issuers of stablecoins must address all the concerns presented by the G7 in order to launch. They believe the crypto phenomenon raises problems for member states in the form of private competition that could cause economic instability.
Trading Ban Fuels Tether Usage in China
The yuan crypto trading ban established by the Chinese government has fueled the use of tether for trading in the country, according to reports from blockchain research company Chainalysis. Statistics point to the fact 99% of the trades made in China are using tether as the trading currency to buy bitcoin. Most people buy tether on peer to peer markets, and then use the stablecoin to buy bitcoin on different exchanges. The market has grown 52% in the last year on 10 OTC exchanges tracked by Chainalysis.
NextHash Issues SLP Based NIXT Utility Token
The NextHash group, owners of the NextInter cryptocurrency exchange, partnered with Bitcoin.com to issue a security token based on the Simple Ledger Protocol (SLP), called the NIXT token. Daniele Mensi, CEO of NextHash, declared, “We are very excited to partner with Bitcoin.com, being among the first to leverage the great potential of SLP-based token because our priority is to pave brand new avenues of customer interactions.”
Ethereum Co-Founder Says They “Underestimated” the Community
Vitalik Buterin, one of the most famous Ethereum co-founders, reflected about the importance of community in cryptocurrency during the Dragonfly Crypto Summit in China. Buterin told the audience, “We’ve underestimated the importance of community. Two years ago I was a believer that if you built good tech they would come. We now see that without investing in community the good tech won’t come, or it won’t be that good,” while pointing to their own flaws in Ethereum.
Booking Holdings Also Leaves Libra
Facebook Coin Libra continues hemorrhaging members. Booking Holdings, a popular online travel company, announced it is leaving the project. With this pullback, the Libra Association has now lost 7 of the original 28 members. This marks another blow to the Facebook-backed cryptocurrency when Stripe, PayPal, MasterCard and Visa also withdrew their support recently after being pressured by a threatening letter sent from US lawmakers.
Almost 50% of Tether Issued on Ethereum
— alexfisher.eth (@AlexanderFisher) October 13, 2019
Almost half of all tether is now issued on top of Ethereum as an ERC20 token. According to the stablecoin’s transparency page, balances issued in each of the two protocols, Omni and ERC20, is almost the same: $2,145,000,000 on top of BTC (OMNI), and $2,023,993,042 on Ethereum (ERC20). This migration of tether to Ethereum has caused problems on the blockchain, raising fees for regular ETH users while taking network utilization to almost 90% of the blockchain’s capacity.
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