In the spotlight of this week: Brian Stutland compared BTC to VIX, China and South Korea call for lift on ICO ban and XRP rebranding.
Brian Stutland of Equity Armor Investments gave an interview to CNBC about the correlation between the world’s most prominent digital currency and the wider, non-crypto market
He compared Bitcoin to VIX, the Volatility Index on CBOE, and said that there's a correlation between them.
Of course, you can always find some similarities between two assets, especially when both are in treding down. What is the purpose of VIX? It acts as a fear gauge for the whole market. Its value represents the expected annualized change in the S&P 500 over the next 30 days, calculated with options-market data. As we see, it only reflects the current market sentiment. Last time it tripled in price in February, when the Dow plunged more than 1,000 points. Traders feared that the rising inflation might cause cheap money to be pulled out of the economy. Now it has returned to fairly comfortable levels, as everyone seems to calm down.
Bitcoin always acts on its own. It never reacts to any news related to real economies. Gold is usually considered a defensive asset. Sometimes, it rises when the geopolitical situation in the world becomes tense, and sometimes it doesn't. But the history of Bitcoin trading is too short to make such loud statements. Maybe it'll become a defensive asset when every trader gets the access to buying it on major non-crypto exchanges. Thus, comparing VIX and Bitcoin isn't correct.
Simultaneously with China, the National Assembly of South Korea has plans to lift the ban on ICOs it introduced in 2017
Also, the Korean committee asked the government to set up a special task force to put in order the crypto trading and increase its transparency.
As we see, being a closed country in an open world won't do you any good. Since imposing the ban, Korea is losing talented young people who are forced to move to a new country where they can continue to run their blockchain-related businesses. Many Korean blockchain startups have moved to Singapore, Switzerland, Thailand or Japan, where they are always welcomed. In the new environment, where people can migrate with ease and there are no limits to new technologies, there's no need for restrictions. Those countries, which adapt to ever-changing conditions, will lead the development. Technologies are the new resource of our century, and slowing down their development is like selling your oil fields to another country in 20th century. As technologically advanced as South Korea is, it's pretty natural for them to encourage the development, not to strangle it.
Ripple is making a re-brand for XRP
During the recent Consensus 2018, a new logo was presented. Also, it was announced that Ripple wants to detach its brand from a Coinbase, thus a re-brand serves this purpose.
Quite a smart move by Ripple. While they're having troubles with authorities and, particularly, with US Congress, they want to make it seem like they don't have anything in common with XRP. For those who haven’t been paying attention to this company's progress, it has managed to partner up with many banks, all of which use xVia, their older product for cross-border payments that doesn't require using XRP as an intermediary asset. To this day, there's still no any use for that coin. Despite this it has a very high market capitalization, being in the top 5. Now the rumours are that Ripple wants XRP to be listed on Coinbase, but it's impossible in current conditions, given that Coinbase can't list coins and tokens that are considered a security. A move such as a rebranding could help. At least it seems that Ripple thinks so. But it's hard to believe that they are separate entities, given that there is still a ton of XRP frozen in company accounts.