In Today’s Crypto Minute: Zuckerberg puts some of his best execs on blockchain, Bloomberg partners with Novogratz to launch a crypto index, and the lawsuit around Ripple labs is not your typical ICO case.
Facebook Develops a Blockchain Strategy
According to CNBC, Facebook has developed a plan to address the growing threat of blockchain. Former CEO of PayPal and head of Facebook’s Messenger department, David Marcus, is leaving his position to explore how Facebook can best leverage blockchain technology. We have seen Zuckerberg snap up(no pun intended) threatening competition with acquisitions such as Instagram($1 billion) and Whatsapp($19 billion). This time, however, he appears to be investing in house by setting up a small team of researchers to explore the decentralized technology.
Launch of the Bloomberg Galaxy Crypto Index(BGCI)
According to coindesk, Bloomberg has created a market capitalization-weighted cryptocurrency index fund. Partnered with billionaire ex-hedge fund manager Michael Novogratz’s Galaxy Digital Capital, the index will track the performance of the largest and most liquid tranche of the crypto market. Interestingly enough, Novogratz’s fund has also partnered with Block.one, the developers of EOS.io, to set up a $325 million fund directed at projects utilizing the EOS infrastructure.
Lawsuit Against Ripple Labs Is Not Your Typical ICO Case
Ripple Lab’s has been smacked with a lawsuit that its tokens(XRP) are in violation of securities laws. This is interesting news because usually ICO cases taken by the SEC involve either out-right scams, or unregistered token pre-sales designed to raise money for blockchain startups. This case is different because the complaint argues that the company maintains a centralized ledger and has been making profits off of XRP price increases. They may be onto something; 61% of XRP is held by Ripple Labs, and 98% are held by the top 100 accounts.