Blockchain universe suffers blow as Blythe Masters calls it quits
The financial crisis of 2008/9 was blamed on a number of things. Among them was the concept of credit default swaps (CDS), financial derivatives that allow investors to transfer their credit risk to another investor. A good example is when a bank believes that a certain client will default on their obligations. To prevent the risk, the bank can sell the loan to another company. This clever hedging strategy was developed by Blythe Masters, who was a high-flying female executive at JP Morgan.
In 2014, Blythe made headlines when she resigned from her position at the bank to explore the cryptocurrency industry. She became the Chief Executive of Digital Asset, a blockchain company that caters to institutional investors and startups by facilitating confidential trades.. At its prime, Digital Asset was one of the highest-flying blockchain startups.
Yesterday, the company announced that Blythe was leaving the firm for private reasons. This was a huge blow to the industry because it lost one of its highest-profile believers. Even with the news, the price of BTC moved higher, gaining from $3100 to the current $3730. Other cryptocurrencies like ETH and XRP are also trading higher. The BTC/USD price is slightly above the 25-day and 50-day EMA while the RSI has moved above the overbought level of 70. With crypto sentiment very low, the price will likely reverse.