GSG Market Update – August 1, 2019

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GSG Market Update

 

MarketWatch

August 1, 2019
 
Name Current Price 24h % 30d Vol 90d Vol 21d EMA 50d EMA
Bitcoin  $9,929.89 1.92% 102.23% 97.77% $10,154.447 $9,971.172
Ethereum  $213.34 0.22% 103.59% 99.35% $228.829 $242.641
XRP  $0.315 -1.17% 77.22% 97.52% $0.329 $0.353
Litecoin  $96.13 4.13% 110.46% 106.44% $97.483 $103.754
Bitcoin Cash $320.82 -1.35% 115.09% 109.31% $326.598 $351.576
Binance Coin $27.74 1.40% 91.89% 95.73% $29.134 $30.070
EOS  $4.26 0.13% 116.66% 114.79% $4.550 $5.121
Bitcoin SV $143.460 -3.86% 142.41% 194.63% $159.056 $163.986
Stellar  $0.083 -1.18% 96.93% 101.38% $0.089 $0.099
Cardano  $0.059 -2.48% 104.10% 110.69% $0.063 $0.070
 

News

  • LedgerX officially launched the first physically-settled bitcoin futures contracts in the U.S., beating Intercontinental Exchange’s Bakkt and TD Ameritrade-backed ErisX. LedgerX is offering the new product to both institutional and retail investors, allowing anyone who can pass KYC processes to trade the contracts.
  • UK FCA published updated report on crypto market, offering a comprehensive overview of what they will regulate in the space. New rules also closely follow the FCA’s draft proposals issued in January, declaring that “any token that is not a security token, or an e-money token is unregulated.” In short, cryptocurrencies like bitcoin and ether will remain free from the watchdog’s scrutiny, needing to adhere only to KYC rules. Security tokens have been classified as “specified investments” and within the FCA’s perimeter.
  • Kraken acquired Interchange, an accounting, reconciliation and reporting service provider that offers institutional-grade service. Kraken’s new acquisition aims to provide institutional investors better tools to monitor and report their crypto portfolios.
  • Gibraltar-based cryptocurrency derivatives exchange Quedex received a Distributed Ledger Technology Providers license from Gibraltar Financial Services Commission. Quedex offers futures and options contracts on cryptocurrencies. 
  • NBA and Dapper Labs, the creator of CryptoKitties, have partnered to launch a platform called NBA Top Shot. The platform, which is scheduled to launch in the fall, will feature digital collectibles and will also host a game, which is expected to go live in early 2020.
  • Bitfinex announced it is publishing real-time liquidation updates on its trading site, in preparation for the rollout of its derivative product with up to 100x leverage. Also announced the completion of its on-chain trading platform eosfinex.
  • Bitwala raised roughly $14.5 million in a Series A funding round led by Sony Financial Ventures and NKB Group, while existing investors Earlybird and coparion contributing to the funding as well. Bitwala offers crypto banking services with a built-in bitcoin wallet, debit card and trading options.

Upcoming Events

  • Aug 5 - Litecoin Block Reward Halving (Coin reward decreases from 25 to 12.5 coins)
  • Aug 14 - SEC decision on Bitwise ETF
  • Aug 20 - Blockchain Summit Singapore 2019 (speakers forthcoming)
  • Aug 30 - CME Bitcoin Futures Aug 2019 contract (BTCQ19) last trade date; settlement Sept 3
  • Sept 11/12 - Consensus Singapore (Invest : Asia; speakers forthcoming)
  • Sept 17 - Ethereum Classic Atlantis hard fork
  • Sept 27 - CME Bitcoin Futures Sep 2019 contract (BTCU19) last trade date; settlement Sept 30
  • Jan 3, 2020 - Ethereum 2.0 Launch (Phase Zero)
  • Nov 2020 - ZCash Halvening / Founders’ Reward set to expire

Charts

BTC Longs-Shorts

ETH Longs-Shorts

Market Cap Return


Sector Return

Tether Marketcap

Bitmex Perp Swap Funding Rates

Twitter Daily

Justin Sun@justinsuntron

$USDT-#TRON reached 100 million! More to come! #TRX $TRX



Mike Dudas@mdudas

"One of the murkier corners of the cryptocurrency market is becoming even less transparent... The migration of @Tether_to from the dominant Bitcoin and Ethereum platforms risks making it more difficult for investors to track transactions" bloomberg.com/news/articles/…



DonAlt@CryptoDonAlt

$BTC update: I closed a portion of my trade earlier at target. Keeping the rest, after all. New invalidations would be: 1) A move back into the trading range 2) A daily close sub 9750 3) A bearish weekly close I'll hodl until then turning this into a swing play.

$BTC monthly: Nailed it, 10k+ close. I wish we would've seen some more upside into the close but this is good enough for me. Support held that means my bias remains bullish for now.



Thomas Lee@fundstrat

Bitcoin survived its first ever Fed rate cut... despite stronger USD - hmmm, does #Bitcoin transcend fiat monetary policy? A good sign nevertheless #BTFD #cryptowinterisover

2/ for those wondering what happened to USD, it ripped higher today


A really interesting question. I answered directly in that thread, but let me try to articulate an answer more clearly. I think about this problem a lot - what does effective decentralized governance look like, given the limitations of human cognitive ability?

  • Dr. DLT @Dr_DLT
  • @AriDavidPaul how do I reconcile wanting to redistribute power to the masses (decentralized systems) with the fact that the average person doesn’t have the ability or desire to use that power effectively?
2/ On the limitations - I'm referring to our inability as humans to consume and process sufficient information to make good decisions. For example, as a US citizen and voter, it's impossible for me to have informed opinions on many of the hundreds of complex topics that matter.

3/ To use a crypto example, how can an EOS holder intelligently select a slate of 21+ block producers? Is it realistic to expect individuals to research 100+ block producers to intelligently select their favorites, and to repeat this process multiple times a year?

4/ This is vaguely similar to the question of trust in Bitcoin. Theoretically we can each validate the client code we run, line by line. But realistically, we know that won't happen. Even for fraction of people capable of doing this, it's a huge undertaking.

5/ in politics, the result of these limitations has been A. representative over direct democracy. Voters (usually) don't vote on specific policies, they elect representatives who can explore those topics full-time. And B. we limit voters' power via the constitution.

6/ Consider Bitcoin. You could argue that it disempowers individuals; people have less power to change the protocol than they have in the traditional finance system (arguably). But I'd argue it empowers individuals; have to separate power to use a platform vs power to change it.

7/ Very similar to the bill of rights (which disempowers voters as a group to protect individuals from a 'tyranny of the majority'), I think Bitcoin's lack of on-chain governance protects individuals' financial sovereignty by taking away their power over the platform itself.

8/ This isn't necessarily binary. The US constitution can be changed, it just takes a deliberately arduous supermajority. Similarly, on-chain governance isn't binary, it can come in lots of forms that needn't be pure majority (or plutocratic) rule.

9/ My conclusion from this line of thinking is simple: we should approach governance with a practical mindset - complexity must be minimized, and governance can only be as "large" as the "voters" (whatever form that may take) can handle.

10/ if you expand governance beyond the point that stakeholders can intelligently actively participate, you probably get a bad result. The system becomes too easily gamed by insiders. EOS gives a hint at these problems with the 'phantom' validators currently in the top 21.

11/ When the governance demands on stakeholders exceeds their abilities or inclination to devote the time, they're forced to delegate their governance authority in some form. That delegation may produce more harm than good. An EOS voter is likely relying on some trusted party.

12/ this is also true in Bitcoin to some degree - my "trustless" usage of Bitcoin relies on selected experts who tell me that the client code will work in a certain way. Even identifying and verifying a source for Core client code is a non-trivial ask of someone new to crypto.

13/ Basically - governance requires decision making which is a major burden on stakeholders. If the burden is too great, the governance system is easily controlled by insiders, since stakeholders are forced to delegate authority unintelligently.

The Fed delivered a 25 basis points cut, the first cut since 2008. What did bitcoin do? It propelled sideways like a rocket, as usual.

$BTC saw a very minor increase in trading activity at 14:00 EST, time of the FOMC statement. FOMC volatility hit the market the most starting 14:37 EST, during Powell's conference. $BTC did not even flinch then.

That's how an uncorrelated asset for which monetary policy is a very minor driver trades. I'm surprised this is still the case, but it is. Theoretically, the more institutionalized class the asset class becomes, the more it will react to the Fed. Not there just yet.

   
2/ Approximately 180 projects raised funds through an IEO while at least 40 exchanges facilitated at least one IEO in 2019. Four little known exchanges (ProBit, Coineal, Bitforex, and Exmarkets) that are attempting to capitalize on the trend have facilitated 45% of all the IEOs
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3/ Because of the low quality of small exchanges, I analyzed all the projects that had an IEO on the more legitimate exchanges ( Binance, Bitfinex, Bittrex, OKEx, Huobi, KuCoin. These exchanges have had 28 IEOs combined, out of which 64% have had a positive return in terms of USD
Image

4/ Perhaps a more indicative metric is a return in terms of bitcoin - only 12 projects, less than half, have outperformed bitcoin.
Image
5/ IEOs’ largest appeal is its speculative nature. The all-time high return of 12 projects had been higher than 500%.
Image
 
6/ But because most of the investors buy the tokens just to sell them for a higher price a few months later, the price is never sustained. About 75% of projects have lost 50% of value since their all-time high and 39% of projects lost more than 75% of value since ATH.
Image
 
 
7/ Moreover, there appears to be a relationship between the price change since the all-time high and the number of days since the IEO took place. The more days it has been since the IEO, the higher the price crash since ATH has been.
Image

8/ Binance’s IEO success is hard for other exchanges to replicate. Binance is in the best position to facilitate token sales because it of its access to the largest retail userbase and it can, therefore, be more selective with projects than other exchanges.
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9/ Average IEO returns in 2019
@binance - 258%
@OKEx - 125%
@HuobiGlobal - 87%
@kucoincom - 28%
@bitfinex - (11%)
@BittrexExchange - (14%)

10/ The data shows that IEO tokens can’t sustain value over the long term. The most rational strategy to maximize profits would, therefore, be to invest in IEOs facilitated by the most successful exchanges and to not hold over the long term. Long term, invest in something else
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