New Cryptocurrency Focuses on Price Stability

August 06, 2018

Cryptocurrency still has the reputation for significant price swings. In this episode of the TechTalk, we look at a new contender—with some big backers—that’s tied to the U.S. dollar to help temper that volatility.

Transcript

Dave Plaskow: Hello and welcome to EisnerAmper’s technology podcast series. With more than 500 technology clients, we’re always interested in the latest industry trends and developments as well as any related business and accounting opportunities and challenges.

I’m your host Dave Plaskow, and with us today is Dave Katz, Senior Manager in EisnerAmper’s Technology and Life Sciences practice. Yes, it’s another episode of TechTalk. Today’s episode is on a new type of cryptocurrency – somewhat of a hybrid as you’ll hear. Dave, welcome.
Dave Katz: Thanks Dave. Good to be here as always.

DP: So what have we got for our listeners today?
DK: Sure. So Circle, a Boston based FinTech startup, now offers a cryptocurrency tied to the U.S. dollar called USD Coin.
DP:Yeah, cryptocurrency was, was really hot not long ago. It’s cooled down a little bit. Tell us about this one. Why is this one somewhat counterintuitive?
DK:Sure. So, cryptocurrencies were originally designed as an alternative to the federally regulated banking system. But when you tie it to the U.S. dollar you’re essentially joining the establishment.
DP: So it’s my understanding Circle has a couple of deep pocket supporters, correct?
DK: That’s right. So the industry leading crypto mining company Bitmain has invested $110 million. Their operating profit was a staggering three plus billion dollars last year and Goldman Sachs along with several VC based firms have brought Circle’s valuation to more than three billion dollars.
DP:So what may be different here?
DK: As you know with cryptocurrencies it starts and ends with volatility.
DP: Absolutely, I mean, as we all know, Bitcoin is down considerably from its $20,000 high.
DK:Yup. So Circle uses a peer-to-peer network that uses blockchain and Circle clients must have a dollar for every USD coin held in order to minimize that volatility.
DP: And Circle has another interesting wrinkle too, doesn’t it?
DK:Yeah, so its framework is open source so that many developers can both work and oversee the currency.
DP: Interesting. So what’s next for Circle?
DK:They’re looking at a similar system for the Pound and the Euro so we’ll see how it develops and what comes next.
DP: Ok. So they’re looking far and wide. Well Dave, thanks again for dropping some knowledge on us.
DK:Thanks for having me.
DP:And thank you for listening to TechTalk as part of the EisnerAmper podcast series. Visit EisnerAmper.com for more information on this and a host of other topics. And join us for our next EisnerAmper podcast when we get down to business.

Have Questions or Comments?

If you have any questions, we'd like to hear from you.

More Podcasts in This Series

Lessons Learned from the Theranos Dissolution

EisnerAmper’s Technology and Life Sciences practice talks about the Theranos dissolution, and what took them from biotech unicorn to dissolution. Investors must use due diligence and consider a company's internal controls before investing in companies with high valuations.

Ride Sharing Capped in NYC

EisnerAmper's Technology podcast series discusses the proposed New York City Council cap on the number of ridesharing vehicles such as Lyft and Uber in Manhattan to ease congestion. How will this cap change Uber's valuation, and what is the economic hit to the taxi industry?

Drones, a Farmer’s New Best Friend?

TechTalk takes a look at a tech startup, Aerobotics, that is using drones to help farmers in South Africa. This podcast discusses how the drones help South African farmers, how the US government is using drones and how MIT is making micro drones.

A 3D Printed Community

TechTalk discusses a new 3d printed community proposed in El Salvador by the nonprofit New Story and ICON construction. Icon and New Story debuted their 3D printed house at the Austin South by Southwest festival. Issues discussed include cybersecurity and valuation.

At-Home Genetic Testing Goes Beyond Just DNA

Life Science Partner Dave Katz discusses the new 23andMe DNA testing kit for breast cancer BRCA1 and BRCA2 gene mutations approved by the FDA, and what it means for the biotech industry. The FDA approved 23andMe DNA breast cancer test increases access to health care information.

Amazon Stays Busy

TechTalk examines Jeff Bezos' new possible Amazon facility cities of Austin, New York City, Washington DC and Atlanta, with Atlanta being Dave Katz' first pick. They also discuss Amazon Go, and Amazon's healthcare initiative with Berkshire Hathaway.

Apple Watch EKG

EisnerAmper’s technology podcast discusses the first FDA approved EKG band for the Apple Watch. Dave Katz of the Technology and Life Sciences practice discuses these new medical devices, their use of artificial intelligence and the cybersecurity issues surrounding them.

Technology Potpourri

EisnerAmper’s technology podcast discusses related business and accounting opportunities with the senior manager in its Technology and Life Sciences practice about Uber, drones, internet providers and net neutrality, IPOs, AI and the R&D credit that may expire next year.

Is AI Destined to Replace Fund Managers?

Is AI Destined to Replace Fund Managers? This episode of TechTalk talks about the first ETF powered by artificial intelligence (AI), the technology behind it, if it impacts a fund’s expense ratio and, most importantly, how it’s performing.

Looking into Facial Recognition Technology

It was a milestone when Facebook implemented facial recognition software in 2010. The iPhone X has put a renewed spotlight on facial recognition technology. EisnerAmper’s Technology and Life Sciences Manager discusses security issues surrounding facial recognition technology.

Supersonic Air Travel Coming Back with a Boom

Supersonic air travel is coming back with a boom. What does today’s market look like for supersonic air travel and how are start-ups such as Boom and Aerion navigating the many challenges? Also discussed is mergers and acquisitions and the need for valuations.

Is Roomba Vacuuming Up Data on Your Home?

Is iRobot’s Roomba automated vacuum collecting consumer data that will be offered to technology companies to enhance internet of things devices? Here is what information is being collected, potential data privacy and security issues, and iRobot’s response to consumer concerns.

Tesla Gets Chinese Backing

Tesla has received a significant investment from Chinese tech giant Tencent. This podcast discusses what Tesla plans to do with the cash infusion, Tencent’s ownership stake and how this could help both companies enter the highly coveted self-driving car market.

Amazon's Acquisition of Dubai Based E-Commerce Company Souq.com

Amazon’s CEO Jeff Bazos just passed Warren Buffet to become the second wealthiest person on the planet. In Technology M&A news, Amazon competes with Alibaba by buying Dubai based Souq in a battle over E-commerce in the middle east, as reported by EisnerAmper’s Life Sciences Practice.

The Market for Tech Talent

With retiring baby boomers some of the fastest growing jobs in technology attracting tech talent are located in New York City, San Francisco, Austin and Seattle. Tech talent can come from non-traditional backgrounds and there is strong hiring growth in hubs such as New York City.

Amazon Go Wants to Streamline Your Grocery Shopping

Amazon Go wants to streamline your grocery shopping. This podcast discusses Amazon’s plan to use 'Just Walk Out Technology' to change food shopping. A look at the technology behind Amazon Go, potential speedbumps and what it could mean for bricks-and-mortar grocery chains.

Being Taken For a Ride – The Self-Driving Car

David in EisnerAmper’s Technology and Life Sciences Practice, gives a “state of the union” on self-driving cars, an overview of Uber’s unique experiment in Pittsburgh, and a glimpse of what we can expect in the marketplace over the next few years.

Biotech Faces a Real Estate Shortage

This episode of TechTalk we discuss the commercial real estate shortage for the nation’s biotech sector. Life science and biotech companies in hubs like Boston and San Fran are seeking out real estate in the suburbs in order to afford space to expand their businesses.

Hyperloop Could Take People from LA to SF in 35 Minutes

This Life Sciences and Technology podcast talks about the space-age technology called the Hyperloop. The Hyperloop could take people from LA to San Francisco in 35 minutes, and was originally conceived by Elon Musk. Hyperloop One is the first company to develop the technology.

Is the Commercial Drone Market Ready for Takeoff?

David discusses the commercial drone market, including how the FAA will regulate pilot licenses, drone use in real estate, Amazon's use of drones for future deliveries, the VC market and M&A strategies for companies interested in investing in drone technology.

Virtual Reality

David discusses virtual reality including Facebook's acquisition of Oculus, HTC's Vive and revenue recognition that comes from virtual reality technology. HTC has created the Vive X Fund and Facebook has created a similar fund to help develop virtual reality software.