GSG Market Update – August 22, 2019 (copy 01)

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GSG Market Update

August 22, 2019

MarketWatch

 
Name Current Price 24h % 30d Vol 90d Vol 21d EMA 50d EMA
Bitcoin  $10,004.06 -1.84% 67.84% 92.32% $10,691.07 $10,501.77
Ethereum  $186.70 -0.76% 66.81% 89.00% $204.88 $221.60
XRP  $0.264 -0.66% 62.02% 76.61% $0.290 $0.317
Bitcoin Cash $297.94 -0.77% 71.17% 96.04% $321.45 $336.43
Litecoin  $72.75 0.58% 77.39% 100.29% $82.85 $91.62
Binance Coin $26.92 -1.31% 65.04% 83.81% $28.45 $29.15
EOS  $3.51 -1.71% 79.31% 110.30% $3.93 $4.44
Bitcoin SV $131.190 -1.80% 56.10% 157.28% $142.86 $150.14
Monero  $79.530 -2.31% 75.09% 93.80% $86.26 $87.13
Stellar  $0.067 -1.77% 59.59% 80.24% $0.07 $0.08

Notable Moves
Name Current Price Change (24h)
Everex $0.5526 19.64%
Received Money Transmitter License from New Jersey Department of Banking and Insurance

Top Stories

  • Tether planning to issue a stablecoin pegged to the Chinese renminbi (CNHT), according to Zhao Dong, founder of peer-to-peer crypto lending business RenrenBit. Zhao said that he believes the new stablecoin will be “launched very soon, possibly within weeks,” adding that the stablecoin’s reserve is expected to be held in a bank in Belgium. It is unclear which blockchain CNHT will be built on top of.
  • Pieter Wuille introduced a new BTC smart contract programming language called Miniscript. Miniscript is a language for writing a subset of Bitcoin scripts in a structured way, which enables analysis, composition, generic signing and more. According to Wuille, the adoption of Miniscript could reduce some of the barriers between pieces of software used in smart contracts, and also provide a multisig ecosystem that functions in a more effective way than simple script language.
  • Gemini now open to customers in Australia. Australians can now download the Gemini Mobile App and use it to buy, sell, and store cryptocurrencies.
  • Singapore-based Bybit announced launch of asset swap function, which allows customers to trade perpetual contract of different cryptocurrencies more conveniently. Currently, it supports the following cryptocurrencies to swap: BTC, ETH, EOS, and XRP.
  • Crypto custody provider Anchorage announced that clients who hold Stellar Lumens can now receive inflation awards with their Lumens in custody, and Anchorage clients who hold Tezos can receive baking returns through delegating their baking rights either to Anchorage's baker, or to any other third party baker.
  • New Jersey Department of Banking and Insurance has issued a full Money Transmitter License to Everex to conduct crypto-to-fiat exchange and other activities.
  • Crypto.com has obtained a policy of as much as $100 million through a global insurance marketplace that covers users' digital assets held in their accounts with the cryptocurrency and payment platform. The unnamed insurer will offer a crime insurance product that safeguards the offline storage accounts against theft or direct loss.

Upcoming Events

  • Aug 30: CME BTCQ19 last trade date
  • Sept 13: Ethereum Classic Atlantis hard fork
  • Sept 23: Bakkt Launch
  • Sept 27: CME BTCU19 last trade date
  • Sept 27 - Oct 4: Korea Blockchain Week 2019
  • Oct 13: Bitwise ETF Final Decision
  • Oct 18: VanEck/SolidX ETF Final Decision
  • Oct 25: CME BTCV19 last trade date
  • Oct 28: Mt. Gox Rehabilitation Plan Submission Deadline
  • Oct 31: Telegram Open Network Launch
  • 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 Rate


Twitter Daily


Everex@everexio
We’re excited to announce that New Jersey Department of Banking and Insurance issued to Everex US a full Money Transmitter License to conduct crypto-to-fiat exchange and other activities
Read more here: http://bit.ly/2ZcbRmg

BenjaminBlunts@SmartContracter
pretty much where i feel we are in the $btc cycle, nothing moves in straight lines. you want them sick gains? then be patient, because patience is a virtue.
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Dovey Wan @DoveyWan
BREAKING According to @zhaodong1982 Tether gonna issue CNHT, a $CNH peg stable coin ...
Chinese regulator can be easily pissed by this hope it won’t burn Tether ...
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Plus the banking is Deltec still for CNHT
 
A few thoughts here please chime in
1. I don’t see enough demand for CNHT and alike, as local Chinese will still trade $USDT with CNY, if it’s CNH it will be the same as USD
2. Not sure what’s the material upside of having CNHT for Tether, plus pissing of Chinese regulator
3. If it’s not for better fiat on-ramp, no material upside or expansion in demand, and most likely won’t change Chinese CNY holders behavior too. Am I missing anything here?

Another potential negative externality for ALL local Chinese crypto player - Currently the USDT liquidity in China is supported by large network of P2P trading (I send CNY, the counterparty will send me USDT, they will figure CNY/USD by themselves) (cont.

after 2018, Chinese gov has loosen control on crypto in general, but this CNHT thing is one of the “this mother fucker dare touch RMB when I’m working on official digital RMB” from PBOC Might trigger their nerve again which is not a good news for local Chinese players

to give more context here This Tether's $CNHT is not the first RMB peg, in 2017/2018 there are things like $BITCNY (over collateralized), $QCash by http://ZB.com all pegged to RMB (more like synthetic RMB)
 

https://twitter.com/doveywan/status/1164173561361100801?s=21… the boycott of $CNHT of Chinese local crypto OG and exchanges founders are coming fast

The boycott of Tether’s $CNHT by local Chinese crypto OG already started
this one is by Jun DU, former cofounder or Huobi, owner of the biggest Chinese crypto media JINSE and many others
His reason is “It will bring systematic risk to local Chinese crypto ppl and companies”
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another one by@LBank_Exchange founder Basically he said there is no demand and only enable trade between RMB and Dollar in the digital realm. Not sure how to translate Chinese idiom “脱裤子放屁” - “you take your pants off to fart” means unnecessary stupid effort
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1/ The general crypto narrative seems to be drifting back to bitcoin maximalism, so I wanted to share a few thoughts on bitcoin relative to the rest of the crypto market:

2/ BTC has clearly outperformed most other cryptoassets by a wide margin YTD. Expecting that this will always be the case (or that holding only BTC is the right move) strikes me as foolish.

3/ Why? First off, there is a strong recency bias in the crypto community (and in the investing world at large, tbh). Just because something has been the case lately does not mean that will persist in perpetuity.

4/ Those who have been in this space for many years should recall that this is by no means the first time the pendulum has swung back and forth -- in 2017 bitcoin was old news and it was all the shiny new layer1s that were going to take over the world.

5/ In reality, ETH was a better performing investment for many (even when considering the major correction of 2018!) than BTC was. So BTC remains king, but discounting everything else is silly.

6/ Anyone who knows me (or has followed me on twitter for more than 5 minutes) is aware of how bullish I am on BTC. If I could only hold a single asset, BTC would be it.

7/ But given the numerous high caliber of teams who are building crypto networks, I think it is incredibly unlikely that over a period of several years the entire rest of the market amounts to nothing. Not to mention, other chains will serve different functions!

8 / I actually don't believe many other cryptoassets are even directly competitive with BTC -- if it captures the "digital gold" category, there is no reason other cryptonetworks cannot own other categories (compute, storage, etc etc).

9/ So in sum, I believe claims that "alts are dead" and bitcoin alone will make it are nonsensical. I am most definitely long BTC. But call me after you've tried deploying an app on bitcoin versus ethereum -- alternative chains might not seem so useless after all! 


 
Su Zhu  @zhusu

Will be interesting to see how this issue progresses / gets resolved on $EOS For color, this is the founder of the largest initial project built on EOS (Everipedia)

Larry Sanger@lsanger

We cannot continue to build dapps on EOS if the network is de facto centralized in the hands of the Chinese. I’ve been making noise internally at EP about this since I learned about it earlier this summer. Sorry, but it can’t go on much longer, as far as I’m concerned.

EOS Dapps @DappsEos

Is #EOS run by a Chinese oligarchy? Brock Pierce confronts vote buying and collusion said to be plaguing EOS governance in worrying speech to block producers youtu.be/SdzF4X1Eb2c 
 


dave the wave@davthewave

Still watching this closely. A turning of the monthly MACD would signify the real possibility of an extended correction through to year's end....

Halfway there....


skew@skew_markets

Watch Maker / DAI as ether sells off & erases most of its gains YtD  +40% currently The DAI collateralization level is at its lowest level in six months ~ 325% - not an alarming level in absolute value but mostly a function of the ether price!



>50% of DAI could be liquidated if ETH sells off to 100$
 

Worth noting the Coinbase effect on the # of CDPs since the Earn program started

Not creating inflows however of ether in Maker

The 354 Martin Act subpoena was utilized brilliantly by the NYAG, likely part of a scripted strategy put in place last year. The NYAG wasn't forced to show all of its cards at once and, more importantly, allowed an opportunity for BFX to dig itself into an even deeper hole. 1/9

  • New York v. Bitfinex — "Fundamentally, Respondents misperceive the respective roles of the Attorney General and the Court." davidgerard.co.uk/blockchain/201… this correctly translates as "don't waste my time."

Plan: Seize enough bank accounts with CCC/BFX/Tether $ in October 2018 to cause problems. Force BFX to react to same and, in the process, generate docs and communications. Then request docs relevant to the seizures and the tether redemptions that followed. 2/9

When BFX/Tether eventually balked at producing the requested docs (they ultimately did through their NY attorneys), obtain an ex parte order, which the NYAG did in April 2019. 3/9

It played out nicely. Communications mysteriously obtained by the NYAG during that time period (chats between Merlin & Oz) strongly supported the necessary elements of the NYAG's request for injunctive relief (i.e., imminent & irreparable harm). 4/9

Unlike other regulatory events in the past (i.e., the Dec. '17 CFTC subpoenas or the Oct. '18 bank seizures), the April ex parte order was immediately made public w/out giving BFX an opportunity to contemplate the best way to react or mitigate the fall out. 5/9

That allowed regulators to observe the frenzy of activity occurring after the ex parte order (2 bil. USDT printed to keep prices afloat), and docs & sworn answers explaining those issuances could then be requested. All w/out the NYAG having to lay its cards on the table. 6/9

There was very little downside to the 354 subpoena strategy. It led to a skirmish with super high stakes for BFX, and very low stakes for the NYAG. If the injunction was overturned and the subpoena quashed or substantially limited in scope..... 7/9

.. no big deal, really. The NYAG could continue its investigation through other means. But now, BFX's options are to open up its books and attempt riding out the investigation or refuse to comply with the document requests & seemingly guarantee its fate. 8/9

A refusal to comply with a Martin Act subpoena can be considered prima facie evidence of fraud and give the NYAG a strong basis to seek a permanent injunction. Viewing it in hindsight is like watching a hummingbird get baited into and smushed by a Venus fly trap. 9/9

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This update is provided for information purposes only and does not bind GSG Asset Management or any of its affiliates in any way. It is not, and is not intended to be, a/an: (1) “research report”, “investment research” or “independent research” as may be defined in applicable laws and regulations worldwide; (2) offer to sell, a solicitation of an offer to buy, or a recommendation for any digital asset by GSG Asset Management or any third party; or (3) official confirmation or official valuation of any transaction or asset mentioned herein. To the extent that any of the content published in this update may be deemed to be investment advice or recommendation in connection with a particular digital asset, such information is impersonal and not tailored to the investment needs of any specific person. Any pricing information is indicative only, and does not reflect a level where GSG Asset Management is prepared to execute a trade. You understand that an investment in any digital asset is subject to a number of risks, and that discussions of any digital assets in this update will not contain an exhaustive list or description of the relevant risk factors. GSG Asset Management is not an advisor, and nothing in this update should be construed as investment, tax, legal, accounting, regulatory or other advice, or as creating a fiduciary relationship. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation. All market prices, data, and other information (including that which may be derived from third party sources believed to be reliable) are not warranted as to completeness or accuracy, and are subject to change without notice. All content in the update is presented only as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. GSG Asset Management disclaims any responsibility or liability to the fullest extent permitted by applicable law, whether in contract, tort (without limitation, negligence), equity, or otherwise, for any loss or damage arising from any reliance on or use of this update in any way.






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