This Week in Fintech ending 22 May 2020

https://dailyfintech.com/2020/05/22/this-week-in-fintech-ending-22-may-2020/
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this week in Fintech V3.001

This weekly summary from our 8 experts, brings you insights based on their experience as investors, entrepreneurs & executives.

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Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote Binance killed CoinMarketCap.com

On April 2, 2020, Binance posted on its blog that it acquired CoinMarketCap.com (CMC), the best known crypto data site. It’s been reported that the size of the deal was $400 million in a cash and equity and that Brandon Chez, the founder of CMC was stepping down. He was replaced by Carylyne Chan, CMC’s current Chief Strategy Officer. The basic question is why would an exchange like Binance need a data aggregator like CMC and why would it pay such an enormous amount of money? Well, maybe because CoinMarketCap is one of the most visited websites in the world, with 2.5 to 5 million unique people visiting it, every day.. This is a huge deal for Binance, because it could funnel more visitors from CoinMarketCap, to its product offerings. But just like Jack Ma’s ownership of Hong Kong’s major newspaper South China Morning Post and Jeff Bezos’s ownership of the Washington Post, two things come to mind: transparency and independence. Six weeks after the acquisition, CoinMarketCap changed the way it ranks exchanges, making Binance the top exchange on CMC. Has CoinMarketCap now become a marketing tool for Binance?

Editor note: When Binance acquired CoinMarketCap that data driven media business went from many advertisers to one. The most proven business model in trading (whether crypto or ANO asset) is exchange/brokerage ie making money on each trade no matter what the trading outcome is. So the synergy for the deal is obvious, but the benefit for users is less obvious. Room for an independent market data site to replace Binance owned CoinMarketCap?

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser,  founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote Funding from the crowd, VCs, or Angels

Funding is on everybody`s mind, especially for early-stage companies with no significant customer base. Will this time be different than in other market downturns?

Crowdfunding limits in the US are increased

The SEC increased the amount that companies can raise through crowdfunding. SEC is has proposing to increase the limit from $1million to $5million for accredited investors and to revise the calculation of investment limits for non-accredited investors (allowing them to allocate a greater percentage of their net worth). Of course, it will take time to be able to tell the impact. When will the appetite kick in at the current lower valuations.

 Editor note: Efi offers a fascinating analysis of which parts of the venture capital/fundraising market is most/least impacted by the pandemic slowdown/coronacrash.

Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for week ending Tuesday 19 May 2020

This weekly snapshot is the news that matters in the Stablecoin market.

Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur and thought leader specializing in Small Business and the Gig Economy & CEO/Co-Founder of Zuper, a new superannuation startup in Australia wrote Miaowing Debit Card Banks £17.5m From Strategic Investor

How do you build a bank differently? Perhaps by taking a design led approach to everything, starting with the sound a debit card makes when it does a contactless payment.

In ANNA’s case, the bank for freelancers and SMEs, that sound is a ‘miaow’.

In February of last year, a miaowing debit card was reported as being enough to catch the attention of the startup’s first 3500 customers. Not bad going for a simple sound effect.

Fast forward to May 2020, and ANNA will surely be feeling like the cat that got the cream, having landed a new strategic investor hot on the heels of a crowdfunding campaign late last year.

In just 19 months since launching, the business has now sold off a majority stake in the bank for £17.5m to ABH Holdings SA, a privately owned, European financial investment group.

Editor note: Jessica looks at a capital efficient digital bank doing well during the pandemic. Forget gazillions raised, focus on traction and cost of that traction ie CAC/LTV, by using creativity.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert (a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners who also serves the insurance and Fintech world as the ‘Insurance Elephant’) wrote Dominoes have fallen – what insurance learnings have we so far from COVID-19 business disruption?

When this article was first posted in late February 2020 the COVID-19 outbreak was still focused on China, but its effects were menacing the globe.  At that time the concern was supply chain issues and a less than one hundred coronavirus cases distributed primarily on the east and west coasts.  As this article is reread one can consider what parts were on point, and if on point, was there anything that really could have been done to mitigate the then unimagined scope of what was to come?  Let’s revisit three months ago, think of what might be done next time, and also discuss with insurance agents how the market’s customers have changed in the ensuing time period (if at all.)  Text from the original article will be noted in italics.

 

Editor note: Pat’s article is required reading for anybody thinking about how to position for the post pandemic future of Insurance.

Thursday Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL: SIX launches b.link, xBRL-JSON and the UK regulatory

Editor note: This weekly snapshot is the news that matters in the XBRL market.

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Friday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote Security Tokens: don’t fight the regulator if you want to be regulated

The idea of Security Tokens was to combine all the efficiency and low cost of ICOs with legal and regulated offerings. The reality is that not much is really happening currently  in  Security Tokens – as our NQA data shows.

 

We have been tracking the Security Token space since before it had an official name while the unregulated ICO wave was still cresting. Recently we created a unique way of tracking the news in this and other spaces – our News Quality Assesment (NQA) methodology. This gives us good data on which sectors are getting traction and which are not.

 

NQA tells us that not much is happening in Security Tokens today. Are Security Tokens taking a refreshing nap or in a coma at death’s door? All we know is that it is quiet out there.

Editor note: What do you think? Are Security Tokens taking a refreshing nap or in a coma at death’s door?

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