Is ETH now facing the same fate as Bitcoin

CME Ethereum futures are live – Is ETH now facing the same fate as Bitcoin at the end of 2017?

CME Ethereum futures go live while the Bitcoin price has written a new all-time high, driven by the latest Tesla news.

It’s a neck-and-neck race and events are really rolling over. Only today, it was announced through an official letter that Tesla has invested 1.5 billion US dollars in Bitcoin and also wants to Bitcoin Revolution accept BTC as a means of payment for its products in the future. At the same time, CME Ethereum futures are going live and many are wondering what impact this will have on the market and especially the Ethereum price itself.

The Chicago Mercantile Exchange (CME) has launched its highly anticipated futures contracts for Ether, the native cryptocurrency of the Ethereum network.

Announced back in mid-December, the big event has now finally gone live with Ether futures trading, with the February contract recording an opening price of $1,669.75. At that point, the spot price for ETH was around $1,600.

The Chicago-based exchange has traded 135 contracts so far, with most activity focused on the February expiration date. The futures contracts are legal agreements to buy or sell the crypto asset at a predetermined price at a later date.

Current CME Ethereum Futures

CME’s Ethereum futures are cash settled and based on the exchange’s reference price, which includes data from major cryptocurrency exchanges Bitstamp, Coinbase, Gemini, itBit and Kraken.

The world’s first regulated Ether futures product could attract more institutional demand for the second-largest cryptocurrency by market value and boost the recent Ethereum price rally.

Qiao Wang, cryptocurrency researcher and investor and co-founder of Messari, tweeted yesterday (Sunday):

‚The first traditional financial institutions that bought BTC are already looking at ETH, if they haven’t already bought. And rightly so. The most widely used crypto network + the future of finance + a potential deflationary monetary policy make it extremely compelling.

Wang predicts that the current rally could take Ethereum to $5,000 or higher in the long run.

Could CME futures collapse the Ethereum price like they did the Bitcoin price in 2017?

ETH has tripled in value since CME announced its plans to list futures contracts for Ethereum on 16 December 2020. A similar pattern was already evident in 2017. Back then, the bitcoin price experienced a price surge from $6,000 to $19,783 following the announcement of CME BTC futures. Again, the Bitcoin price had tripled in value. At the same time, the live walk of the CME BTC futures marked the peak in the Bitcoin price before it dipped into a 2-year bear market.

This parallel leads many to fear that the Ethereum price will now face a similar fate.

However, this fear is not necessarily justified. As trader and analyst Alex Kruger noted on Twitter, the market is now different. It is more mature, the fundamentals are completely different and there are now more and more institutional investors involved in the market alongside retail investors. He sees a continuation of the Ethereum rally.

Fractal: With Polkadot against the duopoly of Google and Facebook

The advertising market is primarily controlled by two data octopuses: Google and Facebook. Fractal wants to break this duopoly and relies on the technology of Polkadot. We got an exclusive look at the draft whitepaper due for release on February 4th.

Fractal wants to revolutionize the internet – specifically: the advertising business on the web

This is now firmly in the hands of a few major players. Namely Google and Facebook, which have built up a duopoly in advertising on the Internet. This also applies to the data of advertisers. If you want to place targeted advertising, you have to rely on the data collecting octopus. Fractal now wants to contrast the centralized advertising business with a blockchain-based alternative. The mission: to dissolve the asymmetrical distribution of information on the web and make user data a common good without violating the privacy of the individual user. The ubiquitous cookies, which document the surfing behavior of users across websites, should be a thing of the past.

Bitcoin Era allows us to carry out many transactions on the network at low cost. This makes it possible for the first time to resolve the contradiction between user data protection and data verifiability. This means that users control their own advertising-relevant data and thus also control access to this data, data buyers such as publishers or advertisers can check the authenticity. Other systems either solve this centrally – and are therefore not open and less user-friendly – or the data cannot be verified. We can now resolve this contradiction for the first time, explains Fractal founder and CEO Julian Leitloff to BTC-ECHO.

Tomorrow, February 4th, the start-up plans to publish the draft white paper for the Fractal Protocol. BTC-ECHO had an exclusive opportunity to take a look in advance.

Fractal: White Paper Draft

The whitepaper describes an ecosystem whose participants can be divided into five different roles: advertisers, users, verifiers, insurers and witnesses.

The advertisers publish an application (Ad Buy) in the fractal protocol, which must contain the following information: the target group (e.g. nationality, age range, interest), the desired user reaction (e.g. downloading an app or taking out a subscription) the price, which is paid by the advertiser for every successful user interaction (bid price) as well as the total budget for the campaign.

The advertisers deposit a portion of the planned campaign budget in a trust wallet, the Ad Escrow. This is to prevent spam attacks.

Users keep control over their data

The users always retain sovereignty over their data. You decide what information you want to share. This is where the witnesses come in. These “attesters” are responsible for verifying the user data and issuing references (“credentials”). One way of creating and managing decentralized credentials comes, for example, from the start-up KILT with which Fractal cooperates . KILT also relies on polkadot.

While the witnesses guarantee the authenticity of the user data, the verifiers check that the user interactions are also authentic. If this is the case, the author transfers the bid price for the interaction to a separate escrow wallet, the arbitrage escrow. In this way, Fractal wants to tackle the virulent problem of fraud in the advertising business, for example in the form of fake click figures.