The Intersection: Crypto and Wall Street This Week
As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly. 1. LOWEST MARKET VALUE SINCE NOVEMBER: A widespread investor retreat pushed the market for digital currencies down 70% from its January high, signaling user frustration over their modest inroads into commerce and a general shakeout in speculative investments, the Wall Street Journal reported Tuesday. The value of all cryptocurrencies in circulation this week dropped below $200B for the first time in 2018, its lowest since November and of the top 100 cryptocurrencies by market value, 98 were down over 24 hours. 2. TSMC SEES CRYPTO MINING CHIP DEMAND: TSMC (TSM) has seen a pick up in orders for cryptocurrency mining chips, despite mining chill, according to DigiTimes reported Thursday. China's Bitmain, Canaan Creative and Ebang Communication, which command approximately 90% of the global Bitcoin mining devices, have unveiled new devices with higher performance application-specific integrated circuits to extend market share and a lot of smaller China suppliers of ASICs have also placed orders with TSMC for fabrication. 3. NVIDIA SEES NO CRYPTO CONTRIBUTIONS 'GOING FORWARD': On Thursday, Nvidia (NVDA) CFO Colette Kress, commenting on second quarter results, said, "OEM and IP revenue was $116M, down 54% from a year ago and down 70% sequentially, driven by lower demand for cryptocurrency mining...Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100M, while actual crypto-specific product revenue was $18M. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward." 4. RIPPLE TARGETS CHINA: Ripple is targeting the Chinese market with its distributed ledger technology designed to accelerate cross-border payments, CNBC reported Wednesday. The blockchain company struck a deal with Hong Kong-based financial services firm LianLian International earlier this year, aimed at powering the firm's cross-border transactions between China, the U.S. and Europe. 5. COINBASE REBRANDS TOSHI: Coinbase said in a Wednesday blog post that Toshi is becoming Coinbase Wallet. "This is not just a new name, but part of a larger effort to invest in products that will define the future of the decentralized web and make that future accessible to anyone. At Coinbase, we believe that the applications of the future will be built on a decentralized internet. Everyone will own a crypto wallet that allows them to access decentralized applications and that wallet will be their gateway to the open financial system... Coinbase Wallet is one part of our effort to accelerate the adoption of crypto and dapps around the world." CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia in select research. Overstock (OSTK), DPW Holdings (DPW), Kodak (KODK), Seven Stars Cloud (SSC), Riot Blockchain (RIOT), Pareteum (TEUM) and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme. PRICE ACTION: As of time of writing, bitcoin rose about 1.6% this week to $6,469 in U.S. dollars, according to CoinDesk. WANT BITCOIN NEWS ALERTS?: To receive alerts on stories relating to bitcoin and other cryptocurrencies, Fly subscribers can enter "Bitcoin" into the "Add symbols" box of their portfolios.