Cryptogram – April 15, 2019

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MarketWatch

April 15, 2019
 
Name Current Price 24h % 30d Vol 90d Vol 21d EMA 50d EMA
Bitcoin $5,168.69 1.42% 65.41% 52.36% $4,798.46 $4,402.15
Ethereum $166.48 1.31% 72.72% 79.53% $160.13 $149.32
XRP $0.33 0.44% 68.35% 64.20% $0.33 $0.33
Bitcoin Cash $298.01 6.21% 165.06% 121.22% $252.81 $206.48
Litecoin $81.22 3.36% 110.02% 106.49% $77.15 $66.18
EOS $5.48 2.65% 92.12% 101.45% $5.01 $4.37
Binance Coin $19.68 2.15% 82.54% 87.77% $17.94 $15.70
Stellar $0.12 1.68% 76.83% 76.82% $0.12 $0.11
Cardano $0.08 1.32% 104.76% 88.50% $0.08 $0.07

Notable Moves
Name Current Price Change (24h)
BCH $298.01 6.21%
Data stemming from blockchain analysis indicates Bitcoin Cash whales have accumulated 1.1 million BCH in the last five weeks.

News

  • Arthur Hayes, CEO of BitMEX, has revealed that the firm is hoping to open a cryptocurrency options platform in the medium term during an interview on the Venture Coinist podcast. A rough timeline for the prospective launch was "12 to 18 months."
  • ING blockchain team testing a privacy technology called "bulletproofs," the latest in a series of experiments at the Netherlands-based global bank. Developed and refined by cryptographers at Stanford University, University College London and startup Blockstream, bulletproofs are designed to hide amounts being transferred in Bitcoin transactions normally visible to anyone. 
  • London Stock Exchange issued its first-ever shares in tokenised form on the platform. Equity in financial technology company 20|30, worth around £3m, were issued in token form on LSE’s Turquoise equity trading platform.
  • Bithumb received $200 million in funding from Japan’s ST Blockchain Fund. The cash, which forms part of a Series A funding round, will allow Blockchain Exchange Alliance to expand the international side of Bithumb. 
  • Survey of 150 endowments conducted in Q4 2018 by Global Custodian, The TRADE Crypto, and BitGo has shown that endowments are investing in crypto-assets and funds, with 94% stating they invested either directly or through a fund in 2018. Respondents acknowledged a number of factors still concerning them when it comes to the digital asset class, however only 7% said they anticipate a decrease in their allocations in the next 12 months.
  • Lithuania preparing to introduce stricter rules for crypto companies, working on amendments that will go beyond the requirements of the latest, fifth EU Anti-Money Laundering Directive. Under the new rules, only entities registered with the country's Center of Registers will be allowed to operate with digital assets in Lithuania. These companies will have to adopt comprehensive KYC and anti-money laundering procedures. Service providers will be expected to inform the Financial Crime Investigation Service (FCIS) about larger transfers.
  • Russian Duma approved bill that would enable country to have a "Great Firewall" or "Iron Curtain" similar to what China has. The result of the law is that, whenever the government wants to, it can censor all incoming and outgoing traffic traveling through state-owned channels. 
  • France National Assembly recently passed Pacte law, which will allow life insurance providers to invest in crypto-currencies and tokens without any limitation on the amount that can be allocated. Les Echos reports that a dual provision of the announced act will allow insurers to invest through specialized professional funds in crypto-assets.
  • IMF and World Bank launch quasi-cryptocurrency in exploration of blockchain tech. The asset called “Learning Coin” will be accessible only within the IMF and World Bank. The coin has no monetary value and thus is not a real cryptocurrency. “Learning Coin” will serve as a hub where blogs, research, videos, and presentations are stored.
  • 14 members of the Open Finance community came together for inaugural DIPOR call, laying the foundations for defining and formalizing DIPOR, an on-chain oracle for the volume-weighted average borrow interest rate of specific cryptocurrencies. Ideally, the final implementation of DIPOR would be a tool allowing for the addition and removal of specific lending platforms, thereby providing different groups the ability to ascertain where their offered rates fit in the context of the wider market.

Upcoming Events

May 6-12 - Boston Blockchain Week (in partnership with Fidelity Digital Assets, G20, Circle)
May 9 - Fluidity Summit (Speakers: Joe Lubin, Caitlin Long, Justin Schmidt, Loi Luu, Anthony Pompliano)
May 10-11 - Ethereal New-York (Joe Lubin, Ryan Selkis, Amber Baldet, Laura Shin, Chris Burniske)
May 11-12 - Magical Crypto Conference (Elizabeth Stark, Adam Back, Peter Todd, Charlie Lee, Riccardo Spagni)
May 13-15 - Consensus 2019 (Jeff Garzik, Jameson Lopp, Dan Morehead, Hester Peirce, Justin Sun)
June 25-26 - Bitcoin 2019 (Andrew Poelstra, Anthony Pompliano, Jihan Wu, Tuur Demeester, Jimmy Song)

Charts





Twitter Daily

Tom Shaughnessy

1/ Thread on On-Going Project Funding This is a trend I am seeing that will only-gain in momentum in my mind. There are too many funding issues in the space popping up Transparency (ethereum foundation) Projects running (ETC cut teams, SteemIt, R3 etc)

2/ Just today @0xProject announced it is attempting to implement a community treasury, with token holder control. Addresses on-going funding (if the protocol is being used)  Lacks a UI/UX proposal for token holders to voice direction of treasury

3/ Treasuries = fork resistance If you fork away, you lose the monetary value of the treasury Treasury enables an outside party to propose changes that can be funded by the treasury, instead of their own pockets via a fork (only open to rich). Drives greater network effects

4/ On-going protocol level funding removes the need to productize upgrades For example, in $DCR, a developer can propose an upgrade and get paid in DCR. Same with $XTZ. This removes the need to productize services, which could add friction to the use case and development

5/ For Example  @lightning / @Blockstream are doing phenomenal work on expanding $BTC's tech/capabilities. But they will eventually have to make money. Investors = realistic plan to earn money

6/ Instead Submit a proposal to a treasury, and get paid in tokens. This removes the need to have to earn income on a project or service that is created. No need to productize = less friction + potentially better apps.

7/ Treasury aligns stakeholders Those who own/build on the platform have an incentive to increase the value of the treasury and tokens, since they would be paid in them.  Brings on non-altruistic builders who can also pay their bills.

8/ Funding is vital Projects need a model for decades long funding that is central to the protocol itself.  Funding = path for long term evolution and upgrades by a global base of non-altruistic parties. One-off changes are NOT enough.

9/ Example  $DCR is the easiest example I point to. 10% of block rewards go to a treasury, anyone can submit a proposal, anyone can vote. Just buy a ticket. Simple.

10/ New Value Accrual Model  $ZRX’s treasury proposal appears to be denominated in ETH. This could usher in a new way to value projects (I.e. how much of a base asset they are accruing times some multiple).  Only works of the protocol is actually successful (TBD)

11/ Issues Real token holder control Allocation of treasury funds in real time Fork and create new treasury. Hard not impossible. Converting treasury to USD is an option, but adds token level sell pressure Probably 100 more things /Fin

Delphi Digital‏ 

0/ We just released Delphi’s first Quarterly Macro Outlook for all of our subscribers! We take a quick look at growth in fundamentals before diving into the core of our report, the macro backdrop. Sign up to read the full report here: http://www.delphidigital.io/research 



 

1/ In the near-term, the backdrop for risk assets appears to be favorable as global central banks walk back plans for tighter monetary policy. The Federal Reserve’s dovish pivot recently has fueled a rebound in public equities as “risk-on” sentiment continues to proliferate.



 

2/ Many public + private pension funds use discount rates between 7-8% to calculate their future liabilities. A world of sub-3% yields on Treasuries (not to mention the nearly $10T of govt debt globally carrying negative yields) is simply not enough to satisfy such requirements.



 

3/ Given the outlook of slower economic growth and subdued earnings forecasts, the backdrop appears favorable for growth to outperform. If so, #bitcoin may be poised to catch a bid as investors reach for riskier assets with significant price appreciation potential. $BTC



 

4/ In addition to our macro analysis, we highlight a few key sectors within the space as well as the projects within them. The sectors we cover include: smart contract platforms, payments, privacy, gaming, #DeFi, and security tokens.



 

5/ Lastly, we were able to get a few contributor pieces for our subscribers! We thank @tonysheng @nlw @NLawGlobal and @JoyceInNYC for sharing their unique perspectives!




Chris Burniske

Saying ICOs are dead is misguided. Creative capital raising is just getting started in #cryptoland. Instruments will resemble equities, bonds, native cryptoassets, and more. Like it or not, the future is almost certain to get more out of hand than prior “structuring bubbles.”



Boxmining‏ 

Bitcoin mining Ban in China 1. Miners will "co-operate" and send in some old gear 2. Government will take photos claiming operation is successful 3. Mining will continue in China as normal 4. Bitcoin demand will increase because Chinese people like to do opposite of Gov demands



Hasu‏ 

How will a European sovereign debt crisis affect the price of bitcoin? Excellent article from Yuriy Anosov of @Galois_Capital

https://medium.com/galois-capital/eur-drawdown-effect-on-btc-40042aa3634f

Jill Carlson

I'm at a conference called #DebtCon3 today talking about the implications of state-issued tokens and how sovereign states might use cryptocurrency. Yes you read that right... #DebtCon.

Also the game theoretics and credible commitment problems and incentive designs and reputation systems that are taken for granted in the world of sovereign debt have SO MUCH to teach the world of cryptocurrency where every individual / entity is basically a sovereign actor.

We've also got @Kiffmeister here talking about CBDCs (digital representations of fiat currencies).

He's talking about the Marshall Islands, whose SOV is NOT a CBDC but rather a sovereign digital currency... the Marshall Islands are attempting to use this ICO as a way of balancing their books. "This Israeli company came along and said 'Have we got a deal for you...'"

"There's ~50 countries in the world looking at digital versions of their fiat currency... many of them very seriously. Not all are blockchain-based. Some, like Uruguay, are using a very simple account-based system. Anonymity is guaranteed by access controls based on court order."

"If there's any doubts about the health of the banking system, why not use a CBDC? Cash is expensive to produce and manage. And there is optionality that comes with CBDC like negative interest rates... which gets _some_ central bankers excited."

One of the academics on the panel is now asking @Kiffmeister about how to monetary policy can be managed and yield curve interventions can happen with a mined cryptocurrency  never thought I'd see this conversation happening... John replying that it basically depends.

There are so many directions you could go with this. Dai's governance comes to mind. As do conversation's around Ethereum's inflation rate and Bitcoin's long-term supply schedule. But I suspect this is not the intent of the question.

We've moved on from CBDC but the rep from the Council of Europe Development Bank just compared central bank easing to a morphine drip...



FO256 Live Stream - The premier digital assets conference for sophisticated investors

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How to scale Bitcoin (without changing a thing) - Why Bitcoin banks need to prove their solvency by Nic Carter
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