Crypto Corner for May 20 2019

Just before the weekend we observed a sudden drop in the crypto market, with Bitcoin (BTC) falling as low as $7050 on Friday, and the total crypto market cap sinking to about $220 billion, according to data CoinMarketCap. Over the course of the weekend, however, Bitcoin has made a significant recovery, and is trading for $7770 at press time. Total market capitalization is currently sitting at $241 billion. This crypto recovery peaked yesterday, but has since fallen alongside a drop in the Dow this morning

Reuters reports that Facebook (NasdaqGS:FB) has formed a new blockchain-based fintech company in Switzerland called Libra Networks. The company, which was registered on May 2 in Geneva, will focus on “investing, payments, financing, identity management, analytics, big data, blockchain and other technologies.”

The European Central Bank issued a report on Friday, in which it claims that cryptocurrencies do not represent a threat to the stability of finance in Europe.

Crypto-assets currently do not pose a material risk to financial stability in the euro area. Their combined value is small relative to the financial system. The sector nevertheless requires continuous careful monitoring, as market developments are dynamic and linkages to the wider financial sector may increase to more significant levels in the future.

Ethereum (ETH)-based stock exchange SprinkleXchange expects to list its first company in June, according to a report from Bloomberg. Based in Bahrain, SprinkleXchange uses the Ethereum blockchain for settlement and clearing – the first licensed IPO-platform in the world built on blockchain technology – and targets companies with a market cap of $20 million to $200 million for listing. The company’s CEO, Alexander Wallin, told Bloomberg in a phone interview:

“We have the luxury of being first with this, but we’re aware that it will become a crowded market. It’s like moving from VHS to streaming; Netflix did it nicely and was first, but now there are lots of streaming sites.”