Welcome to the Sherman Group Daily Briefing. In each briefing, we let you know the top 3 pieces of news you should know about in the and industry along with today’s top reads. cryptocurrency blockchain Sorry, I’ve been gone for so long. A bunch of updates. You will be hearing from me daily again. I am launching a consulting firm called , we help governmental agencies, Fortune 500 companies and institutional investors understand the blockchain and cryptocurrency space. Our first client was the State of Ohio’s Treasurer Office where we helped implement the first cryptocurrency tax payment portal. You can read about it . I will have some updates about Grasshopper Capital in the next couple of weeks. Stay tuned. The Sherman Group here What’s Happening Today? Bitmain closing Israeli development center. ( ) Globes Bitmain is closing its Israel office and laying off all 23 of the employees who work there. What’s the Story? Bitmain has been the leader in the cryptocurrency mining space for some time now. For the past couple of years, they have literally been printing money, but a combination of bad decisions (eg. supporting Bitcoin Cash) and a significant decline in cryptocurrency prices has affected their business. I wouldn’t look too much into the fact that they are shutting down their Israeli office, but it does show that even the mightiest cryptocurrency companies sometimes bleed. It’s not 2017 anymore. Why It’s Important? SEC Fines Crypto Fund $50K and Issues Cease-and-Desist ( ) Coindesk Coinalpha, a cryptocurrency hedge fund, was fined $50,000 and ordered to shut down by the SEC. What’s the Story? I’ve never heard of this fund and the fund being fined isn’t that important, but what is important is the increase in civil actions being pursued by governmental agencies specifically the SEC. In September, the SEC brought a civil action against cryptocurrency fund, CAM, as well as an action against an unregistered broker-dealer named TokenLot. I’ve reguarly talked about the idea that if something looks like and acts like a security, it’s probably a security and the SEC has jurisdiction. You can’t just say, I am investing in or creating a cryptocurrency and, we don’t have to follow security laws because we are magically exempt. It doesn’t work like that. I’m not a lawyer though, so if you don’t believe me contact one and ask them. Why It’s Important? Layoffs Become the Latest Thing in Cryptocurrency ( ) Wall Street Journal Consensys and other cryptocurrency companies are laying off employees left and right. What’s the Story? This story is similar to the Bitmain story. Recently, Consensys laid off 13% of its staff while other firms such as Spankchain and Steemit have also reduced headcount. It’s obvious to say that in a recession people get fired while in a bull market people get hired, but I want to go deeper than that. Many firms hired too many people for roles that just weren’t necessary. Consensys employs over a 1,000 people. That is a mind-boggling number. Consensys has offices in 28 cities. Their hiring practices are the definition of profligate spending. I have deep respect for Lubin and think he is a visionary, but before firms go on hiring sprees, they need revenue from a product that is selling. I don’t see many firms making money besides exchanges and maybe mining firms. Why It’s Important? Top Links The Rise of Decentralized Finance. ( ) Trustnode The Price Crash & The Impact On Miners. ( ) BitMex Bitcoin & Ethereum: Prices are Down More than the Fundamentals. ( ) Chris Bursinke This newsletter was written by @amlewis4 and edited by @MichamJake .
