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Welcome to the Sherman Group Daily Briefing. In each briefing, we let you know the top 3 pieces of news you should know about in the cryptocurrency and blockchain industry along with todayâs top reads.
Sorry, Iâve been gone for so long. A bunch of updates. You will be hearing from me daily again. I am launching a consulting firm called The Sherman Group, we help governmental agencies, Fortune 500 companies and institutional investors understand the blockchain and cryptocurrency space. Our first client was the State of Ohioâs Treasurer Office where we helped implement the first cryptocurrency tax payment portal. You can read about it here. I will have some updates about Grasshopper Capital in the next couple of weeks. Stay tuned.
Whatâs Happening Today?
Bitmain closing Israeli development center. (Globes)
Whatâs the Story? Bitmain is closing its Israel office and laying off all 23 of the employees who work there.
Why Itâs Important? Bitmain has been the leader in the cryptocurrency mining space for some time now. For the past couple of years, they have literally been printing money, but a combination of bad decisions (eg. supporting Bitcoin Cash) and a significant decline in cryptocurrency prices has affected their business. I wouldnât look too much into the fact that they are shutting down their Israeli office, but it does show that even the mightiest cryptocurrency companies sometimes bleed. Itâs not 2017Â anymore.
SEC Fines Crypto Fund $50K and Issues Cease-and-Desist (Coindesk)
Whatâs the Story? Coinalpha, a cryptocurrency hedge fund, was fined $50,000 and ordered to shut down by the SEC.
Why Itâs Important? Iâve never heard of this fund and the fund being fined isnât that important, but what is important is the increase in civil actions being pursued by governmental agencies specifically the SEC. In September, the SEC brought a civil action against cryptocurrency fund, CAM, as well as an action against an unregistered broker-dealer named TokenLot. Iâve reguarly talked about the idea that if something looks like and acts like a security, itâs probably a security and the SEC has jurisdiction. You canât just say, I am investing in or creating a cryptocurrency and, we donât have to follow security laws because we are magically exempt. It doesnât work like that. Iâm not a lawyer though, so if you donât believe me contact one and ask them.
Layoffs Become the Latest Thing in Cryptocurrency (Wall Street Journal)
Whatâs the Story? Consensys and other cryptocurrency companies are laying off employees left and right.
Why Itâs Important? This story is similar to the Bitmain story. Recently, Consensys laid off 13% of its staff while other firms such as Spankchain and Steemit have also reduced headcount. Itâs obvious to say that in a recession people get fired while in a bull market people get hired, but I want to go deeper than that. Many firms hired too many people for roles that just werenât necessary. Consensys employs over a 1,000 people. That is a mind-boggling number. Consensys has offices in 28 cities. Their hiring practices are the definition of profligate spending. I have deep respect for Lubin and think he is a visionary, but before firms go on hiring sprees, they need revenue from a product that is selling. I donât see many firms making money besides exchanges and maybe mining firms.
Top Links
- The Rise of Decentralized Finance. (Trustnode)
- The Price Crash & The Impact On Miners. (BitMex)
- Bitcoin & Ethereum: Prices are Down More than the Fundamentals. (Chris Bursinke)
This newsletter was written by @amlewis4 and edited by @MichamJake.
The Sherman Group Daily Briefing: December 10, 2018 was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.