Cryptos fall off a major cliff as uncertainty mounts

Kenny Grant
September 10, 2018

The Chief Financial Officer of Goldman Sachs said a Business Insider report from earlier this week that was construed by many as saying the Wall Street firm was ditching its crypto trading desk was "fake news".

In addition to speculators, whose chorus has abated recently, the voices of the recognized experts in the crypto industry has become louder.

It would appear that the cryptocurrency market did not have the best of days yesterday after Goldman Sachs report said that it was going to scrap its training plans. The news spread like fire, causing an epic collapse on the markets with Bitcoin losing over 15% in two days and the total crypto market value dropping by $12B.

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"From the perspective of custody, we don't yet see an institutional-grade custodial solution for bitcoin, we're interested in having that exist and it's a long road".

Although cryptocurrencies operations have not had the smoothest ride in South Korea, there is a possibility that things could change, as the country continues to formalize its cryptocurrency regulations.

Initially, when Goldman Sachs stated that they wanted to review their plans about being involved in the cryptomarket.

Describing physical Bitcoin as "something tremendously interesting, and tremendously challenging", Goldman's CFO emphasised on the need of a safe custody solution for the cryptocurrency.

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Hype over the trading desk was premature?

They're looking to build products their investors understand.

According to Bloomberg's report, the South Korean post service isn't planning on investing in cryptocurrencies.

The bad news was followed by another news which stated that the U.S. regulators were still very reluctant towards this new form of currency and weren't approving establishment of a bitcoin exchange-traded fund. Though directed at retail investors, regulators like the SEC want to be sure that the underlying assets remain secure, though they also worry about market manipulation.

A bounce-back may already be on the way, with the total market cap now back up to 207 billion.

All major coins are rangebound and it is possible that the harm done by the fake news won't be recovered quickly.

Soon after the release of the report, the value of bitcoin fell nearly 6 percent.

In a recent turn of events, South Korea's national postal service, Korea Post (KP), has agreed on meeting with Goldman Sachs" executives in a bid to understand cryptocurrencies "strength and weaknesses'.

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