Morning Report: Good news in the crypto space hasn’t generated the rally that some had likely hoped for.
News from the crypto world has been mixed lately. While market leaders Coinbase and Bitmain continue to grow, and newer entrants like Robinhood continue to expand, the aggregate value of crypto assets has continued to ease while hacking cases crop up.
This week, however, crypto believers got a big shot in the arm: friendly words from the SEC.
Here’s CNBC on the remarks:
[The SEC’s William Hinman] specifically said that bitcoin is not a security because it is decentralized: there is no central party whose efforts are a key determining factor in the enterprise. In addition, ether is also not a security because the ethereum network is also decentralized.
That’s enormous news ether partisans.
And as you can expect, prices bounced on the good news. Here’s a headline: “Crypto Markets Rebound After News the US SEC Will not Consider Ethereum a Security.” Oddly, however, that’s only so true.
Per CoinMarketCap, the total value of all crypto assets (which move in close lock-step to the largest coins) is just under $283 billion at the moment, and ethereum is worth a few pennies over $501. That puts the worth of aggregated crypto down over $50 billion from June highs. Ethereum is also down over $100 this month, inclusive of the short-term bump the SEC provided.
That’s a pretty small rally.
From The Crunchbase Daily:
- After a judge’s ruling this week cleared the way, AT&T sealed its $85 billion deal to buy media giant Time Warner. The ruling and purchase are expected to usher in a wave of more media mergers.
- Food and beverage startups gobbled up more than $3 billion globally in disclosed funding over the past twelve months. Popular areas of investment include fake meat, robot cooks, and low-sugar treats.
- Seattle-based tax and compliance software provider Avalara raised $180 million after pricing shares above the proposed range for its initial public offering.
- There’s more happening on the tech IPO front. Crunchbase news checks in with Domo, Uxin, and Bloom Energy— all companies moving along the path to going public. We also look at M17, a planned offering that didn’t make it to market.
Illustration Credit: Lianne Dias