Raúl's Cryptonews #7: Coinbase and Bitcoin Cash, MakerDAO launches Dai, and a few analysis.

After a few crazy weeks, where a lot of cryptos doubled and even tripled, these past days almost all of them lost 20-30% of their value. Some people started to look for possible reasons, but IMO it’s simple: cryptos are highly volatile, and a correction was expected (and even necessary). At the end of the day, it’s important to remember that the fundamentals haven’t changed: if you buy the idea of cryptos changing the world and becoming the new Internet, these price movements won’t change anything (besides offering discounts to buy more).

After Bitcoin Cash fork, Coinbase announced their users will be able to withdraw their Bitcoin Cash on January 1st, so everyone assumed Bitcoin Cash would be added to Coinbase that day. But this Tuesday Coinbase added it by surprise, and the price skyrocketed.

The interesting part is that the price movement started the day before, in an obvious case of insider trading. Coinbase replied that their employee trading policy forbids that, but it’s impossible to stop. They have confirmed they will add more coins in 2018, so I’m sure we will see this happening again.

After three years, MakerDAO has finally launched their stablecoin, Dai.

The idea behind stablecoins is simple and very much needed: a cryptocurrency that does not fluctuate in value. To achieve this, the stablecoin’s price has to be pegged to a stable asset. In the case of Maker, 1 Dai is always worth $1, but other projects are using different strategies (e.g., Digix is working on a stablecoin that tracks gold’s price).

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