After surging to as high as nearly $9,800 a day earlier, bitcoin pared some gains to trade narrowly lower on Friday. The No. 1 cryptocurrency by market value stuck in a narrow band Friday as trading volume came in at about $9.3 billion.
Here are the cryptocurrency stories you can't miss for Friday, May 4.
Investor Tallies 10,000 Bitcoins
Chinese angel investor Cai Wensheng achieved his goal of accruing 10,000 bitcoins, he said in an open Q&A on WeChat this week. Wensheng held just one bitcoin at the start of this year but moved on the cryptocurrency's bearish downturn during the winter to grow his holdings 20-fold. The investor's holdings now total about $96 million, up from the less than $20,000 Wensheng started 2018 with in his bitcoin portfolio. "When I got certain that bitcoin and blockchain is the future, I set the goal of holding 10,000 bitcoin. So I started around end of January to build my [holdings] following the price decline. The more it dropped, the more I bought and now the mission is basically complete," Wensheng said.
Kodak ICO Faces Fraud
Eastman Kodak Co. (KODK - Get Report) has accused Hong Kong-based trading exchange LBank.io of fraud related to its upcoming KODAKCoin initial coin offering (ICO). LBank.io claimed it would be hosting the KODAKCoin ICO from May 4 through May 11, but Kodak said it's not true. "It has come to our attention that more than one fraudulent website has been promoting the sale of KODAKCoin. All factual information regarding the availability of an IOC to accredited investors will come directly from KODAKCoin and its authorized representatives," Kodak said to Coindesk. Kodak had initially expected to begin offering its KODAKCoin in January, but has since delayed the sale. LBank.io is the ninth-largest cryptocurrency exchange in the world by trading volume.
CFTC Highlights Need for Cooperation
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) need to work together with market participants to best regulate cryptocurrencies, officials from the CFTC said this week, according to Coindesk. CFTC Commissioner Brian Quintenz told a conference in Washington that "an effort is underway at both the SEC and CFTC to coordinate and harmonize regulatory oversight." Separately, Commissioner Rostin Behman said Thursday that self-inflicted regulation from the cryptocurrency market's leaders hasn't been sufficient in protecting participants. "Let's work together, have an honest conversation and seek solutions that focus on an inclusive regulatory landscape," Behman said.
Whitney Tilson Speaks Out
"Anyone who's been around for while can see, instantly see, that the cryptocurrency thing is just a well-orchestrated pump-and-dump, total scam, fueled by promoters and charlatans and some real hard-core disciple believers," well-known investor Whitney Tilson told TheStreet, "but they're of course blinded by the fact that they've just gotten rich on it." As far as Tilson is concerned, bitcoin's price is about to shrink dramatically. "All the 1,700 cryptocurrencies out there are valued at about, what, $350 billion? That will go down 80% from here," Tilson said. He noted that those who say cryptocurrency will stay afloat by the virtue of its underlying blockchain technology aren't exactly right. Tilson said blockchain tech will undoubtedly change the world and the way we do business, but that doesn't mean cryptos are going to be worth anything a year from now. "In the Internet bubble, the bet was, 'oh, the Internet is the future.' Well guess what, the internet was the future. But all the stocks went down 80% to 100%," Tilson said, comparing blockchain to the advent of the internet and bitcoin to the stocks that popped in 1999. "That's what you have to understand. Every bubble is actually rooted in something that's actually a good idea or does represent the future," Tilson said.