Heavy losses for crypto assets after Goldman Sachs volte face

September 06, 2018
Chris Wheal

Cryptocurrency prices sank dramatically on Thursday, adding to losses incurred on Wednesday following news that Goldman Sachs had shelved plans for a crypto-trading desk.

Goldman Sachs withdraws plans for launching crypto trading desk

A further dose of bad news followed in the form of a blog post from Erik Voorhees, chief executive of the ShapeShift exchange, which said it was launching a mandatory membership scheme – a controversial move given the company’s initial marketing as “the exchange without accounts”.

GS withdraws crypto desk plans

News of Goldman Sachs withdrawal from the crypto asset trading industry came as a massive shock, given that much of any recent cryptocurrency price gains had been predicated on the assumption institutional investors were becoming increasingly enamoured of the digital asset sector.

Bloomberg reported in December that Goldman’s launch of a crypto trading desk would position the bank to become the first large Wall Street firm to make markets in cryptocurrencies.

While Goldman Sachs is backpedalling on plans for a crypto trading desk, it continues to act as a cryptocurrency custodian – holding digital assets on behalf of large fund clients.

Price round up

Price losses for cryptocurrencies followed, with double-digit percentage falls for many of the top 10 digital tokens on Thursday.

Here’s a price round up of the top 10 by market capitalisation in the last 24 hours:

  • Bitcoin -8.9% at $6,408
  • Ethereum -12.4% at $226.58
  • Ripple -5% at $0.28
  • Bitcoin cash -12.3% at $498.94
  • Eos -14.9% at $5.04
  • Stellar lumens -7.1% at $0.20
  • Litecoin -11.1% at $55.30
  • Tether flat at $1
  • Cardano -12.4% at $0.08
  • Monero -15.8% at $109.18

 

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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