Bad Crypto

The only real way to describe it, a total buzzkill.

Just as Telegram was set to release their newly minted Gram tokens into the world, the SEC in the United States has halted them in their tracks.

The Durov brothers who founded Telegram and managed to raise $1.7 billion for this specific project were hoping to avoid complications with the US justice system and their strategy to do so did seem pretty sound until last Friday.

Telegram never held a public ICO and instead raised funds directly from 171 private investors, each of whom were verified as “professional clients,” meaning that they have sufficient wealth to avoid the usual level of protection provided by the SEC.

Nevertheless, the government claims that the distribution of those tokens itself should be considered as a public offering of securities, even though Gram tokens are clearly meant to be used as money and not as shares in the Telegram app.

Of course, I’m no legal expert but it seems I’m not the only one who is more than a bit confused when trying to determine exactly what precedent the United States is trying to set by allowing EOS to continue with an infinitesimal fine but trying to stop Gram entirely.

Tomorrow there will be no daily market update as I’ll be attending the Hard Fork conference in Amsterdam and my schedule is pretty tight. Will have one for you on Thursday.

Today’s Highlights

  • Traditional Markets
  • Bank Earnings
  • Crypto Lull

Please note: All data, figures & graphs are valid as of October 15th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Everything seems smooth on the surface for traditional markets. Volatility has come down over the holiday, trade talks between the US and China seem bright for the moment, the Fed has managed to beat the repo markets into submission, and even the yield curve is looking a bit less inverted.

There is one wall of worry still on markets minds though, and that’s Brexit. It seems the clock is winding down and though Johnson and Varadker maintain they’ve got some sort of solution to the Irish border, the rest of us are yet to see the details on that.

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