First Mover: Binance CEO Sees Future in DeFi While Bitcoin ...
Russians are Rushing to Buy Bitcoin as COVID-19 Pandemic Continues
As governments around the world continue to battle ill-effects of the ongoing COVID pandemic, Bitcoin is turning out an investment of choice among developing and emerging economies. Bitcoin spikes in Russia A study by Russia’s RBC on June 4 noted Bitcoin trading and exchange volumes are surging across the country’s local exchanges. Most volume seems to have increased from March onwards – around the same time when COVID intensified. The report comes even as Russia considers banning the issuance and trading of cryptocurrencies in the country. Officials from the Russian chapter of Binance, Garantex, and EXMO shared insights with the Russian publication, confirming the growth in users originating from the country. All the bourses have mandatory KYC policies in place, meaning the reported figures are accurate. As the users have grown, so have volumes. Gleb Kostarev from Binance Russia reveals registrations in April 2020 were about twice those of December 2019. He further noted: “It is worth noting separately that the popularity of futures trading is growing among Russians.” Kostareb added trading volumes of Bitcoin and other crypto-products, in May, were double of March and almost “five times as high” as recorded in January. However, Garantex’s Sergey Mendelev said the increase in activity did not necessarily mean people were actively withdrawing the any profits or their initial assets. Meanwhile, EXMO’s Sergey Zhdanov stated user activity on the exchange’s site increased over 20 percent, with 12 percent of that metric being Russian users. The ongoing coronavirus pandemic has led to self-isolated and a lack of income for many people. With such a backdrop, analysts believe traders and new investors are being driven to cryptocurrency and traditional markets in the search of volatility, and in turn, profits. A report by Bloomberg earlier this week noted an increase in Bitcoin trading activity alongside a decrease in volatility compared to traditional markets. The report singled out Bitcoin as a “safe hedge” comparable to gold and claimed the general population is both aware and affected by incandescent money printing by global governments – which economists believe can lead to eventual inflation. The report went on to suggest Bitcoin prices reaching over $20,000 in 2020, although such predictions have proven false in the past. Meanwhile, Virgin Galactic CEO Chamath Paliyapitaya does not believe the corona will prove a bullish factor for Bitcoin, stating the notion is “idiotic.”
Changpeng Zhao, CEO of crypto exchange Binance, isn’t sure what will cause Bitcoin to hit $10,000 again, but has remarked on the token’s recent stability. In a July 19 interview with Bloomberg Daybreak: Asia, Zhao, also known as CZ, commented on the cryptocurrency’s record low volatility. Bitcoin (BTC) has had very few big moves for […]
Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging atGenesis Block. https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player This is the third post ofCrypto-Powered— a new series that examines what it means forGenesis Blockto be a digital bank that’s powered by crypto, blockchain, and decentralized protocols. Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series. 97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit. So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.
Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility. There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
USDC($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid. Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens. Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive. The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments. Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol. Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery. Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur. And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio. With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong. Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k. There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols. Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth. https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943 There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers. Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound. There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto). Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times. The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW! Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized). Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum). In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.” https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8 When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be. We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
--- None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block. So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions. To look at more projects in DeFi, check outDeFi Prime,DeFi Pulse, orConsensys. ------ Other Ways to Consume Today's Episode:
Cryptocurrency technical analysis: neutral market dynamics before a powerful movement
Cryptocurrency technical analysis: neutral market dynamics before a powerful movement This week, most stock market assets showed a neutral movement, which did not give investors clear signals about the need to take bull or bear positions. This trend was reflected in the cryptocurrency market. So, bitcoin continues to move below the key level of $10,000 and is unlikely to overcome it in the coming days. At the same time, it is worth noting a number of positive factors for the development of the price dynamics of crypto assets. Experts from one of the largest US banks, JPMorgan, presented a review according to which in March, bitcoin successfully passed its first stress test “mostly positive”. It also became known that the Binance crypto exchange launches quarterly BTC / USD futures contracts with leverage up to 125x, which will be available to users of the Binance Futures platform. This positive news can return to the market bulls that are waiting for signals for a successful entry.
From the point of view of technical analysis, on a four-hour chart, BTC quotes are preparing for the development of a powerful movement. This is facilitated by going beyond the current consolidation between support at $9150 and resistance at $9500, in the area of which the line of the 200-day simple moving average (SMA) runs. In the future, due to reduced liquidity, traders may begin to open bearish positions provided that bitcoin drops below $9150. In this scenario, BTC can go to targets at $8760 (38.2% Fibonacci retracement) and $8330. A deeper decline is still unlikely, because in case of growth of capitalization of the stock market, part of the funds will be directed to the cryptocurrency market. But in the future months, we can expect quotes to go above the key level of $9500, which will allow Bitcoin to rush up to the target clusters of $9900– $10,000 and further to $10,400– $10,500. https://preview.redd.it/zk56mog26h751.png?width=700&format=png&auto=webp&s=adf137775c35da072775c21acff5ccac26c73fbd BTC / USD chart, daily timeframe.
Ethereum at the moment broke support at around $233, where the 11.4% Fibonacci retracement line runs, which allowed the altcoin to reach the important mark of $220. The next target for sellers will be the consolidation of $195– $200, below which is the line of the 200-day SMA. From this area, the ether will be ready to resume the upward movement to the first target of $251, overcoming of which will be a key condition for the continued development of the upward impulse. In this case, the goals for Ethereum will be the levels of $280, $300 and $320. https://preview.redd.it/fd3at9986h751.png?width=700&format=png&auto=webp&s=2cb20e04b3cd82649cc762f48b6760ba38d59f7e Chart ETH / USD, daily timeframe.
Litecoin confidently reached the goal in the form of the upper boundary of the cluster $40– $42. However, further growth attempts are hampered by the 200-day SMA line, which is located at around $45. A strong impulse to sell can send LTC quotes down to the levels of $36 and $30.60. However, it should be borne in mind that these marks are excellent opportunities for a set of positions for the purchase in the long term. In this case, the first target will be the level of $47.45. By the end of the year, traders will potentially be able to take profits at $52 (38.2% correctional level on the Fibonacci lines), $56.80, $60.80, $65 and $70. https://preview.redd.it/31jo7rmf6h751.png?width=700&format=png&auto=webp&s=cf1d4fef4b8f68c97ba22bd84a56f392a030bd4f LTC / USD chart, four hour timeframe.
A bitcoin fork moves within the framework of the “Horizontal Channel” with borders of $200– $272. The asset is trying to gain a foothold above the level of $250 and the 200-day SMA line, which has become an important resistance for him. Going below $200 will cause BCH to drop to $170, and a break above $272 will provide an opportunity to take profits at $305, $356 and $400. Now trading Bitcoin Cash in the range of $200– $272 may bring more risk than profit, so the best strategy for conservative investors is to wait for going beyond this consolidation. https://preview.redd.it/pjwco4ej6h751.png?width=700&format=png&auto=webp&s=8a2742d0e16e368335b485c9d135c618bc271d6d BCH / USDT chart, four hour timeframe.
XRP further reduced volatility and went down beyond the boundaries of consolidation of $0.2050– $0.2360, which allowed to reach the target of $0.18 in the moment. Closing the daily candle below this mark will allow the bears to send the asset to $0.16 and $0.1470. However, a breakthrough of the $0.2360 level and the 200-day SMA line will allow XRP quotes to rush further to the target levels of $0.2540, $0.27, $0.2860 and $0.30. https://preview.redd.it/0qainjxl6h751.png?width=700&format=png&auto=webp&s=057858229649d84b63611c8fdc78d67b8cb76f17 XRP / USD chart, daily timeframe.
Binance Coin quotes realized the forecast for the development of the downward movement in the region of the lower boundary of the region of $15.30– $16. But bears will need a lot of strength to overcome it, and if successful, they will be able to take profits at $13.80 and $11.50. But in the long run, from these levels, the restoration of BNB quotes to the first goals in the form of levels of $17 and $18.14 may begin. This scenario will be realized provided that an important mark of $16 is broken where the 200-day MA line passes. In the perspective of this year, whales may raise the value of the crypto asset of the Binance exchange to the goals of $19.36, $21.30 and $23.50. https://preview.redd.it/l2devrqo6h751.png?width=700&format=png&auto=webp&s=6cff5b3c4d87de03fdd3f27074df500ac761bbb3 BNB / USDT chart, daily timeframe. Top cryptocurrencies have recently shown a neutral trend, but it will not last long. Indeed, usually this is followed by a powerful movement of the crypto market, so traders should “fasten their seat belts” and prepare for active trading in the coming months.
The world economy is on the verge of crisis again, cryptocurrencies will be strong
Vulnerability refers to the property that things are vulnerable to damage when faced with fluctuations. -Nassim Nicholas Taleb In the face of economic fluctuations, it is disadvantageous to hold such a negative view. Every capital market has its own life cycle, which inevitably goes through a process from growth, to peak, and then to recession. Now is no exception. As we emerge from the longest bull market in history, we suddenly find ourselves in a highly vulnerable global economy facing the panicked and perplexed planet unprepared. However, the turmoil has just begun. Newton's first law, also known as "the law of inertia", means that any object must maintain a constant linear motion or standstill until an external force forces it to change its state of motion. Although this analogy does not perfectly correspond to the capital market (because the market is always changing and developing in different directions), at least one thing is certain that under the action of the market mechanism, the market cycle always appears Trend from peak to valley. The music box winds up, and the performance of the song sounds, and then it stops after a while. When this happens, the market structure collapses, eventually leading to huge chaos, and then falling into silence. Once external forces force the entire economy into trouble, people will realize the long-standing hidden structural defects in the economy. Now, the world economy is on the verge of crisis again. All human beings have to face a sudden outbreak of a global epidemic and the resulting shocks in supply and demand in the market. The economies of some countries have stalled. Ironically, the effects of inertia may be prevalent in market fluctuations. While witnessing the development of the global economy, we still find two simultaneous macro trends: --1-- USD strong We believe that the strong US dollar is driven by three factors: Investors turn to safe assets: Despite the Fed ’s interest rate cuts and monetary stimulus policies, the market ’s increasing demand for the US dollar has pushed up the US dollar index and hit a new high in 18 years. US Dollar Financing Issues: Cross-currency basis swaps measure that investors are more inclined to hold the US dollar than the euro or the yen. On March 17, the euro-dollar basis swap swap premium expanded from -60 basis points to -120 basis points, the highest level since 2011. As of press time, the Euro-US dollar basis swap has rapidly dropped to about -27 basis points, while the US dollar-Japanese yen basis swap has expanded to -70 basis points. Negative basis points indicate greater pressure on the dollar and higher hedging costs for European and Japanese investors. The reality is that U.S. banks, which are the main source of funding for the U.S. dollar, are storing large amounts of cash instead of actively issuing short-term U.S. dollar loans to foreign banks. Due to recent pressure from the balance sheet, more and more U.S. banks are beginning to reduce credit lines to retain cash. In addition, many foreign banks that lack direct access to the US dollar market can only rely on central bank liquidity swaps for financing. This week, the Fed and several other central banks opened new liquidity swap tools, providing USD 30 billion to USD 60 billion of liquidity, respectively, to ease pressure on USD financing. Central banks in emerging market countries are taking urgent steps and lowering their benchmark interest rates: Emerging market investors are very worried about the stability of their currencies and are pouring into the dollar market. According to Bloomberg, all major emerging market currencies weakened against the US dollar on January 20, just as the new crown virus began to spread in Asia. ——2—— Treasury liquidity tightening Abnormally performing credit markets: In general, price fluctuations will prompt investors to switch from risky assets (such as stocks) to safe-haven assets (such as bonds). This was indeed the case when the new coronavirus was causing panic. However, the current despair of liquidity (especially cash) by market investors has led to a large-scale sell-off in the global bond market, falling bond prices and rising interest rates. Repurchase market: The Federal Reserve's rescue measures have not brought the expected results. In the past week, the Federal Reserve announced three repurchases and other measures to release liquidity, hoping to ease the current state of the US Treasury market and reduce the inventory of primary dealers. However, market demand for government bonds remains sluggish. Let's turn our eyes from the home of the macro economy to the cryptocurrency market. Although they are not necessarily related, we find that the two are closely related. In the face of volatility, it is particularly important to develop a price action strategy. The CBOE-VIX index, an indicator that predicts the trend of the S & P 500 in the next 30 days, has surged to its highest level since the last global financial crisis. At the same time, we also saw that the 90-day implied volatility of Bitcoin options rose to 6.8% (annualized 130%), which is about 5.9% (annualized 113%) this weekend. As the "Black Thursday" on March 12th, BTC was down 40% and ETH was down 50%, some leveraged positions were forced to close. According to reports, BitMEX alone closed USD 700 million worth of long and short positions. At the same time, the sell-off of ETH dropped the value of the DeFi ecosystem by 40%. The total amount of collateral liquidation of Compound, dYdX and Maker and other lending platforms reached US $ 10 million. But in this turbulent market, not all assets perform so badly. Although the price of BTC, like the stock market at the beginning, plummeted, falling by 60% from the high price in mid-February, it rebounded by about 50% from the price low on March 12. Over the past period, we have found a large amount of funds flowing from altcoins to BTC. With the spot premium (the spot price is higher than the futures price), the demand for bitcoin lending has increased. The effective fund interest rate also gradually returned to normal as the curve was inverted. In contrast, when futures are at a premium (the futures price is higher than the spot price), there is almost no demand for BTC's lending transactions. At present, the BTC funding rate on various lending platforms has increased from 3-5% to 8%, and the ETH funding rate has increased from 2-4% to 6%. ——3—— Floating profit stablecoin market Since February 14, the entire cryptocurrency market has experienced a large-scale sell-off, with a market value of $ 45 billion evaporated. At the same time, the market value of USDT has risen to nearly $ 5 billion. USDT has emerged from this market volatility and has become a safe-haven asset. This week, the premium rate of USDT prices in China and South Korea is as high as 7%, which is caused by the demand of payment service providers and arbitrage traders. The current over-the-counter USDT supply exceeds supply. At the same time, the market value of USDC climbed to US $ 630 million, a record high. The market value of BUSD is exceeding the US $ 150 million mark, mainly due to the surge in demand for Binance's borrowing and margin trading. ——4—— Near-term outlook We pay close attention to the changing macroeconomic trends and the successive monetary and fiscal policies implemented by governments around the world. Although we cannot predict the specific trend of the market, we still believe that cryptocurrency as an asset class will be strong. In a nutshell, we think: ● Due to the recent sell-off in the market, the value of positions has shrunk sharply, making the distribution of positions in the market clearer. ● With the exit of market makers, the spread between major exchanges has brought more market arbitrage opportunities for retail traders. In particular, the derivatives market (futures and perpetual swaps) has seen a significant discount compared to the spot market, which has pushed up BTC's lending rate. ● By hedging the spot and long futures, market participants can carry out arbitrage trading, which is completely contrary to the market situation we saw last year (the futures price is significantly higher than the spot). ● Over the past six months, trading activities in the options market have grown rapidly. We expect that trading activities in the options market will continue to grow. ● At present, on our platform, institutional clients such as hedge funds, arbitrage traders, crypto companies, etc. have all bought a lot of BTC and USDT. Market volatility is part of investment. We believe that after a period of time, the economy will re-enter the upward trajectory, please let us work together for it.
Do Trading Bots Control The Cryptocurrency Markets?
Supposed You've researched the market price for the coin you want to buy and it is low enough, and you've decided the time is right to buy it. You immediately go to the Binance exchange and place your limit order, hoping that a slight price drop will allow your order to complete quickly. But wait ... what just happened? After placing your order, you notice another buyer place a large order with a marginally higher price, pushing your order below the queue. He says "fair enough" as you decide to increase the bid price of your order to keep your order in the queue and once again your order is pushed downwards and new order just appears above your order and before you know it, that attractive pricing opportunity you wanted to take advantage of is gone. How annoying! Why did this happen? In other words, CryptoTradingBots. Crypto Trading Bots
What Is A Bot?
A bot is an automated trading entity that is programmed to identify market trends and automatically execute trades. Using algorithms, these robot operators can replicate what human operators would do in response to various market scenarios. But crucially, bots can process information and make business decisions much faster than humans. And the bots they just keep improving. They use a wealth of market data to examine trends, update their algorithms, and eventually make more informed and profitable business decisions. Today, bots are used in many financial markets by high-frequency traders to exploit small price anomalies. Markets like currencies have undergone a bot revolution in recent years. The days of crowded commercial flats overflowing with merchants yelling "Buy!" and "Sell!" they are gradually becoming a thing of the past. And e-commerce facilities and rows of computer servers have come in their place as automation takes hold.
Bots And Crypto Markets Are Perfectly Matched
Bots are now proving to be especially popular within the crypto community, from sophistication from free services designed for everyone to more expensive subscription-based bots for professionals. Crypto exchanges are proving to be the ideal playground for bots to expand their influence: Unlike traditional financial markets that normally close evenings and weekends, crypto markets are open 24 hours a day, 7 days a week. This makes them ideal for automated trading: humans sleep but trading bots do not. With some cryptocurrencies now tradable on dozens of exchanges, the abundance of arbitrage opportunities that have arisen can be exploited more efficiently by bots than by traders. Last year, Bloomberg set the amount of automated Bitcoin trading on some exchanges to 80% of total trade volume. Bots could also be partially liable for the massive price changes we've seen in the crypto markets. But what is certain is that a large number of exchange order books are being influenced by bot action. And these bots can produce merchants to buy at a higher price or sell at a lower price than they originally intended. It is often the case with limited orders that bots will be the lowest offer and/or demand prices on the market, and largely the rest of the order book. Also, bots are annoying to deal with! Seeing that your offer is outnumbered almost instantly, and by a robot, not even another merchant, can be very irritating, especially if you place your initial order intending to capitalize on what you think is a 'wrong price' in the market. Looking at market orders, you can also observe a series of bot orders of insignificant quantities that exist close to the market price, before the initial order of any true important quantity is further from the market. Again, bots are trying to trick you into placing a market order that fills up instantly, but most of which will be filled against the large order at a worse price.
Counter Crypto Trading Bot Activity
It can be tempting to outperform the robots simply by resubmitting your limit order with a slight lowering the price although such a single trade strategy may not significantly harm your end-of-day earnings if you are a serious crypto trader who conducts multiple trades on multiple exchanges every day, these small but frequent annoyances will inevitably amount to considerable long-term loss. As such, it may be preferable to keep your order at the price you originally intended. If there is at least some volatility in the market, then your order will complete if you are not in any particular hurry, it is also recommended to take a minute to observe the behavior of the order book. Often bot orders will appear and then suddenly disappear, or move around the book due to constant price adjustments being made. By trying to identify bot intentions, you can end up in a more informed position regarding how and when you place your order. Of course, buying a bot yourself could also help. As more data is collected on the price behavior of various crypto assets, these machines will only evolve further and become even more sophisticated in their business competition. But whatever you do, being aware of the existence and influence of bots will help you avoid getting carried away by a sub-optimal trading position.
After the Bitcoin crash: do others fear me for greed?
At 6:30 pm on March 12, Bitcoin dropped from $ 7211 to $ 5555.55. The bitcoin price dived again this morning, slumping nearly $ 2,000 again in half an hour, the lowest fell to $ 3,782.13, a drop of more than 40% in 24 hours. According to the data of the contract emperor, only Huobi, OKEx, Binance, and BitMEX exchanges had a daily short position of 3.133 billion US dollars, which reached the highest in a single day in history. The number of liquidated positions exceeded 110,000, which was also the highest in a single day. Also on March 12, the S & P index fell 260.74 points, triggering the fusing mechanism for the second time this week. The Dow hit its largest decline in history, at 2352.6 points. The Nasdaq fell 750.25 points to 7201.8 points. This is the third time in the history of US stocks. This fuse has been 33 years since the first fuse, but only 4 days have passed since the last fuse. Buffett shouted, "I only lived this way in 89 years." It is reported that Buffett lost $ 6.8 billion last night. According to incomplete statistics, with the exception of the United States, the stock markets of 11 countries including Canada, Mexico, Japan, South Korea, Thailand, India, the Philippines, Indonesia, Brazil, and Pakistan plummeted. The five largest US technology companies, Apple, Amazon, Google, Facebook, and Microsoft, had a cumulative market value of $ 416.63 billion. The Bloomberg Billionaires Index shows that the top 15 richest people in the world lost a total of $ 46.4 billion. Market panic or pullback demand? Regarding the meltdown of U.S. stocks this week, Yang Delong, chief economist of Qianhai Open Source Fund, believes that the spread of the epidemic is not the main reason. It is more a decade of bull market for U.S. stocks. Some factors driving the rise of U.S. stocks are quietly changing, such as the Federal Reserve ’s interest rate There is not much space. Regarding this crazy drop in Bitcoin, Apocalypse Capital told InfoQ that there are two main reasons for this drop in Bitcoin: on the one hand, the bearish demand caused by the expected global economic downturn, and on the other hand, Bitcoin Callback requirements themselves. As we all know, Bitcoin will be halved in the second half of the year, but the trading market pays attention to speculation expectations. This round of rise has essentially halved the market. After hitting a high of 10500, Bitcoin is facing a callback demand. Of course, this round of downtrends is so rapid and there are only a handful of recurrences in the history of Bitcoin, which are inextricably linked to the decline in global stock markets, both of which are the result of expectations of a bearish global economy. However, Johnson Xu, chief analyst of TokenInsight, told InfoQ that the Bitcoin dip was mainly due to market panic, because some market participants bought bitcoins by buying mining machines, borrowing, etc., and expected to reduce their expectations by half. A linkage effect caused by everyone being too optimistic about the market. The market is overhyped because Bitcoin is halved, and some market participants are afraid to miss the opportunity to enter the market irrationally. The current market slump is driven by strong irrational behavior, which translates into a rapid downside response and quickly depletes market buyers' liquidity (flattening down). When the overall financial market panic or other unexpected events are caused by the New Crown virus and the global economic slowdown, market participants often seek to withdraw assets such as stocks and bitcoins and convert these assets into cash (cash is king). So has the recent gold sell-off. When the market panics, people ask for cash in the beginning instead of investing in safe-haven assets such as gold. At the same time, because gold is considered a high-quality asset, investors usually start with liquidity crunch and market panic. Cash in on good assets (because inferior assets are more difficult to sell in panic times). The Bitcoin crash this time has a certain connection with the decline in global stock markets, because the entire financial market is a globalized market, and there is more or less linkage between each asset. In addition, Forbes speculated that it may be because PlusToken scammers transferred bitcoins worth more than 100 million US dollars to the mixer, and then sold bitcoins, resulting in rising market supply.
Other people are greedy, I am afraid, others are afraid of me, greedy? In this case, should investors still expect "halving the market"? Johnson Xu believes that there is no such thing as a "half quotation", and most market participants are too optimistic about the halving of Bitcoin. Price fluctuations are not necessarily caused by halving, but may be caused by the sum of other factors. When everyone is saying that they are optimistic about the market, the existence of risk is ignored in the subconscious. At this time, the risk will be actually reflected, and the upside will gradually shrink. Bitcoin halving was written into the code, and it was not an accident. Bitcoin should be halved in a rational way. It is worth looking forward to, but not overly interpreting and speculation. However, Tianqi Capital believes that this plunge is a callback period for bitcoin's halving of the market, and each round of sharp decline also indicates the opportunity of the market outlook: cheap chips will be hoarded, waiting for the next wave of hype and explosion. Therefore, Tianqi Capital still believes that the market outlook of Bitcoin is worth looking forward to, provided that it is not frightened by the current fierce washing of the chips, after all, when the bear market is the worst, it is also when gold is everywhere. Regarding the future trend of Bitcoin, Apocalypse Capital stated that it should judge according to the current trend. In this round of market, Apocalypse Capital initially chose to follow the downward trend of May 18, and Bitcoin has gradually dropped from a high of 10,000 to 3150 points, so the big support level predicted by this round happens to be 3700 today. Near the point. Data monitoring shows that some funds are involved in this price range. But whether it can hold on to this support remains to be tested. If the 3700 support cannot be maintained, it is very likely that it will hit the US $ 2000 level. Tianqi Capital believes that this is the market's last line of defense. Long-term investment is recommended to buy some relatively stable targets, such as BTC, ETH, etc. The bear market will eliminate many currencies, but if it survives, it will shine in the next round. Johnson Xu believes that the plunge is also a test to promote the healthy development of the industry. Extreme market is a test for the entire industry, especially for infrastructure, risk management, etc., so it is still optimistic and supports the development of the industry for a long time. For current investors, Johnson Xu offers the following suggestions:
Other people are greedy, I am afraid, others are afraid of me, greedy.
Global financial markets have also undergone major changes. From the data point of view, I don't think Bitcoin has the attributes of a safe-haven asset, but this market can test whether Bitcoin has a certain risk-avoidance capability. This is a global world. We need to analyze various markets, not just the digital asset market.
In the long run, we are still optimistic about the digital asset industry.
Does Bitcoin have a fusing mechanism? On March 9, after the U.S. stock market crash triggered the fusing mechanism, the market began a discussion of "whether Bitcoin should set up a fusing mechanism". But at present, most people are not optimistic about the Bitcoin fusing mechanism. OKEx CEO Jay Hao said that the fusing mechanism is difficult to implement in the digital currency market. In the face of a highly volatile market, setting the fuse point is a difficult problem. At the same time, for a 7 * 24h market, when a certain exchange breaks down, the price difference between the digital currencies between the platforms will increase, leading to arbitrage, and the fuse mechanism will eventually become a decoration. Du Wan, the co-founder of Contract Emperor, also said that it is unrealistic to use a fuse mechanism in the currency circle. The fusing mechanism first violates the original intention of the decentralization of the blockchain, and at the same time, it will touch the interests of the top of the currency circle ecological chain. For example, large trading teams can no longer use pins to obtain large profits. When the market is panic, exchanges with a fuse mechanism may lose traffic to exchanges without a fuse mechanism because of the run effect of traders. It can be seen that the current risk aversion measures in the traditional stock market are difficult to transfer to the fickle currency market in a short time, and the regulation of this market still has a long way to go. Investors should still be cautious when investing.
Current State & The Future Of Digital Assets From Ariel Ling, BitMax COO.
Ariel Ling, co-founder and COO of BitMax, has shared her thoughts on the current state of digital assets and what to expect in the next years, what retail investor should take into account when buying any cryptocurrencie and the key factors that drive the value of the token/coin. Ariel Ling, BitMax COO Why, when and how have you started your crypto journey? I started my crypto journey at the beginning of 2018 when my long-time friend, the co-founder and CEO of BitMax.io, Dr. George Cao “pulled” me out of the traditional Wall Street and asked me to join him in launching this exciting venture. Three main drivers are 1) to learn more about blockchain technology and its transformational applications in different industries; 2) to leverage in-depth traditional finance expertise to improve overall crypto trading and exchange market structure for better efficiency and transparency; 3) to have a chance to work with a talented and driven team who share similar vision, passion and conviction to build a top global digital asset trading platform as well as a wonderful organization from good to great! If your friend will ask you: should I consider cryptocurrencies as investment opportunity? What will be your answer? Will you recommend any specific digital asset? Coming from traditional finance perspective, I would explain my thoughts process from three angles — 1) types of crypto or digital assets as the foundation for understanding; 2) whether they, are more for short-term trading or mid-term investment 2) what are elements for investment valuation and decision-making so our friends can assess and make decision for themselves. First, in general there are three types of digital assets:
Major currency / coin-type like Bitcoin, ETH, XRP, Litecoin, etc. and stable coins;
Security-type tokens representing some equity or debt rights of underlying projects;
Utility tokens for usage on specific blockchain platform or network.
Each type represents different type of opportunity and risk. Second: is digital asset good for trading or investment? due to the nascent nature and very short history of market development with most of retail investors’ participation and lack of proper regulatory framework globally, there are quite some market manipulation, speculation and fraud activities in the current market, causing significant volatility and investors loss across all types within very short period of time. This made it very hard for any investors to assess the real valuation and momentum drivers behind those large swings. So at this point, I would think with its high volatility and risk, digital asset in general is more of very short-term trading product than investment vehicle. From liquidity perspective, major currency/coin-type will have more market depth across exchanges, hence more suitable for short-term trading-focused strategies. Third, from traditional investment perspective, it is critical to assess digital asset investing from valuation and fundamental perspectives, such as business model, future growth, economic return vs. person’s risk tolerance and investment objectives. For major coins, especially Bitcoin itself with its longest history among all the digital assets, have started to provide certain payment function similar to fiat currencies in certain countries. Hence, there are more interesting dynamics to the Bitcoin investing based on one’s view of Bitcoin usage over mid-term horizon and the relative valuation vs its production (mining cost) especially with the price down to 3,500–3,650 USD. For security-type or utility tokens, the performance over short-to-medium term really comes down to combination of intrinsic value of underlying blockchain projects and token economics. Similar to Internet in 1990s, blockchain technology projects are still at the early stage of development and looking for meaningful and applicable use cases to bring real economic benefit from the economics and business model perspective, so it becomes very difficult to apply traditional finance valuation and assess the real intrinsic value of those projects. Recent market crash has brought many of those tokens down to near zero value. So the investment in those tokens are extremely high risk and everyone should be really careful and prudent in the evaluation of any specific projects for the decision-making and risk protection. What is the story behind BitMax? Who are the foundefounders? When it was founded? Q1 2018, Dr. George Cao and I founded Global Digital Mercantile (GDM), global operator of digital asset platforms, including BitMax.io based on Singapore for overseas markets and North America’s trading platform aiming for the first half of 2019. BitMax.io started public beta testing mid July, 2018, and was officially launched later mid August. On November 18th , we launched our mining mechanism, the industry very first transaction-mining & reverse-mining mechanism, which has made us the industry leading third-generation cryptocurrency exchange — after first generation of traditional exchanges like Binance, Gemini, Coinbase, etc. and 2nd generation of transaction-mining ones like FCoin, Bitthumb, etc. Just a quick introduction of my partner. Dr. Cao studied Computer Science in the University of Science and Technology of China, and earned his PhD degree from the University of Chicago. Dr. Cao was the Founder and the Chief Investment Officer of Delpha Capital Management, LLC., New York, specializing in trading equity, ETFs and commodity future products in all major exchanges across the globe. He is also the founder and managing partner of Whitestone Investment Group, a New York based venture fund that invests in a large variety of startup companies that are in the high tech, fintech, big data and medical area. Before founding Delpha Capital, Mr. Cao worked at the Equity Division of Barclays Capital in both the New York and London offices. During that period, he oversaw equity electronic trading in the U.S., European and Asian markets. Prior to Barclays, he researched and traded U.S. equity as a Portfolio Manager at Knight Capital Group. For me, I have built more than 18-year extensive experience in strategic planning, business development, financial risk management and regulatory implementation across major trading asset classes (Equity, FX, and Fixed Income) at several top global banks. Previous to jumping into digital asset trading, I ran USD liquidity and investment product for top financial institutions and corporate clients at tier-one global investment bank. Before that, I ran US Broker Dealer as COO and head of Business Development for Germany 2nd largest bank. Earlier from 2007 to 2012, I was global equity trading COO across Lehman Brothers and Barclays Capital, building out trading franchise and market making businesses globally. I have four degrees — graduated top of class from Nankai University with two Bachelor degrees in Finance and English Literature and got my MBA from NYU and Master of Mass Communication from University of Georgia. Where is Bitmax located? Are you a distributed team or do you have an office to work together? How many people work for Bitmax? Our global team of 50 members are based off two main location — New York with 20 members, including all the founding members, and Beijing with 30 members. Would you be so kind to introduce briefly the core team members? Both George and I are very proud of our 10-member founding team. Similar to us, they are all from Wall Street top firms like Morgan Stanley, Deutsche Bank, Goldman Sachs, Bloomberg, and top high-frequency hedge funds with deep experience in the fields of financial engineering research and development of large-scale quant trading infrastructure. Our educational background span across multiple prestigious institutions including Columbia University, University of Chicago, Carnegie Mellon University, and New York University in the United States, as well as Peking University and Tsinghua University in China. So one special thing about BitMax.io is that very few exchanges in the crypto trading space are built by solid team like ours with strong traditional finance mindset and trading background. You’ve started BitMax during market downtrend in pretty competitive environment. What is your value proposition? Why traders should switch to BitMax? I think BitMax.io is actually very special in this market, and our team is very proud of what we have built in the short period of six months. There are at least three reasons I think traders should chooseBitMax.io:
It’s our real-word professional trading experience and expertise;
It’s is our platform, resilient, high volume quantitative-trading platform;
It’s is our top-quality customer-centric strategy.
First of all, as I mentioned in the last question, architected by a group of Wall Street veterans, BitMax.io builds upon the core value of blockchain, transparency and reliability, and delivers high-quality client services and trading experience through its innovative trading platform. Second, our quant-driven tech platform. Our development members were all from high frequency and quantitative systematic trading shops. They definitely make sure the platform was resilient and it can actually handle billions of volume during the design and build. The platform resilience and scalability were fully being tested when we launched the transaction mining and reverse-mining. The first day, we actually had, within the first 24 hours, the trading volume of 1.6 billion in notional; and our system didn’t flinch, didn’t slow down, and didn’t shut down. This is very rare in any of today’s exchanges where you can frequently see the slowdown, the crash, and very slow user responses, especially with transaction mining exchanges. Third, what we are extremely proud of and all the users can see, is our 24/7 customer services built upon the core Wall Street client-centric concept. Besides our customer support team who never sleep, George actually stands behind the platform almost 24/7 answering questions from the customers, seeking solutions for their issues, and providing the most responsive customer service for the entire crypto trading space. BitMax CEO, George Cao, is often seen in official Telegram group answering different questions. We constantly remind our team: customer first. When we design a product, when we launch a system, and when we look at user needs, we all look from customers’ perspective, from how we can protect the users. When we look at primary listing, we only select the high-quality projects because we want our users to have the best investment and trading experience on BitMax.io. Are you satisfied with the current results of BitMax? Is transaction mining model giving expected volume? What is the % of traders using this model? We are very pleased with current business development and delivery results from client acquisition and trading perspectives. On the business development side, we completed the global setup for both 50-member team organization and comprehensive legal entity structure from Asia to North Americas in 2018, which laid down foundation and paved way for 2019 business expansion especially with US. Since our platform launch in mid Aug, we successfully started Industry FIRST transaction mining and reverse-mining exchange and built out the most active global communities and users within four months in the bear market, with registered users more than 95k; average daily active traders more than quadrupled since the start of transaction mining; average daily trading volume of $465mm through the month of January and February in 2019. Those are extremely promising under this tough market condition. From the composition of trading volumes, there are two parts — transaction mining which grows exponentially; second is organic, the regular trading which has experienced healthy increase as well because of all the listing activities and all the incentives we have. The regular trading takes about 5% of total trading volume, which is very good for an exchange which was launched in August and running right into the bear market. What are the key factors that drive the value of the token/coin? From traditional finance /investment view token economics is really a balance act between business / economic model and exchange market force, driven by three factors: intrinsic value and sustainability, supply and demand, and liquidity and depth. First, from a traditional finance perspective, we need to look at the intrinsic value, the economic valuation behind a project. How does this project make money? Do they really have fundamentals? Do they really have a viable business model? Do they really have a solid user base for future growth? For example, our exchange business model is very simple. We are exchange; People trade on our platform. The more they trade, the more transaction fee the exchange collect — the revenue source. The exchange will last when people keep trading on the platform and the transaction revenue generated covers the operating cost of running an exchange. Second, it is the supply and demand of token on the market — who will buy and for what purpose; who will sell and under what scenarios. For major currency coins like Bitcoin, people might buy and sell for potential investment or use in actual payment processing. For other types of token, it is more driven by short-term trading pattern and profit taking. So it is extremely important to set up certain token mechanism to support the equilibrium of supply and demand like how Central Banks manage the supply of currency in circulation through monetary policies. Third, when the market force comes in, it comes down to the liquidity and depth. Exchange is about liquidity and market depth. That means there has to be enough of trading volumes at each pricing level for each token. For BitMax.io, we have very sophisticated market making model that is similar to Designated Market Maker model of New York Stock Exchange. We focus on providing liquidity and maintaining a fair and orderly market for those token listings who agree to engage our market making services. Every exchange is looking for good projects in order to become a premiere market for this new asset. Can you name some projects that impressed you recently (even if you are not discussing possible listing with them)? BitMax.io has strict listing requirements in order to identify high-quality projects for our users. Very proud that we have listed five industry star projects in the last several weeks, with more in the pipeline. All of them have the following attributes that made them successful — viable and profitable business model, growing user bases, strong community support, and comprehensive funding sources. One of the shining examples is European project named LTO Network listed mid Jan. Its price has been steadily rising since then, as more and more people get to know their business model and more project support comes into the market place to buy the tokens — It uses blockchain technology to streamline a lot of legal processing for one of EU governments, which is very easy to understand its economic value from a revenue perspective. This is simply what people need to see eventually, clean and clear from business economic model perspective. Let’s imagine a crypto market in 5 or 10 years. Can you make any prediction what the market will look like? What customers will expect from exchange in 5–10 years? Based off my long-time experience in traditional trading, especially how equity market evolved last twenty years, I would imagine maturing market structure and entrance of institutional investors are key mandatory and healthy development of digital asset market. First, As the market develops and expands globally, traditional institution participation is a must, in order to upgrade and strengthen the overall market structure and maturity, making it more transparent and resilient, and most importantly enabling the real broad-base adoption of digital assets. Most institutional investors, such as mutual fund, pension fund and other financial institutions, hold the majority of world investment assets, not individual retail investors. Only when those big guys join the market, will there be real revolutionary improvement and expansion of the digital asset just like any other financial markets. Second, I would expect the market to become more structured with major building blocks for transparent trade life cycle processing and separate risk analytics supporting services. Current crypto trading market is very fragmented with exchanges taking on different roles of trading, wallet management, custodian, etc. Also the lack of clear and consistence regulation on market structure has led to many aspects of market inefficiency — inconsistent liquidity and depth, wide spread, high transaction cost, high volatility, speculation, etc. This definitely hampers the broader adoption of digital assets from institutional investors. Forward looking, multi-tier structure under some level of regulatory framework with clear guidance is required for future maturing market. Similar to security market, there should be at least three layers of different and independent roles: the role of broker dealer to handle the client relationship with good KYC/ AML processes, retail clients, other financial institutions, blockchain players and to take client order as agent or dealer; the role of exchange to focus on listing and trading — liquidity provision and order matching; the role of clearing house to provide clearing and settlement and custodian on custody of assets with proper control and independence. It is very clean and clear with good check and balance in place. What are the key challenges for 2019? During our 2018 business planning, we clearly view 2019 to continue being full of challenges with market uncertainty from both asset price and valuation as well as regulatory development globally. In prep for that and further growth of our platform, we have laid out the following four main strategic objectives and they are all well underway:
To launch North America trading platform for high networth and institutional clients. With North America being heavily regulated market, there are two aspects of our plan — First is to leverage a trust structure to facilitate the major coin trading with fiat, and the second is broker-dealer license application with potential for securitized tokens pending regulatory guidance in place.
To enhance BitMax.io platform and reach global top-tier exchange. We will continue listening to our users and working hard to enhance user interface and experience by upgrading website vs. other competitors for better client retention.We will continue leading product innovation among the competitors with margin trading (successfully launched in mid Feb) and then derivative to attract new clients.
Relent focus on implementation and expansion of current business lines — listing, Market Making, marketing advisory services to grow current revenue base; and further seek new revenue opportunity through North America platform while maintaining cost discipline.
we are always on the lookout in terms of exchange alignments, acquisition target, and any business partnership from different aspects of the value chain.
When do you expect a market recovery or next bull run? What are the factors that will influence the start of the market recovery? With current market crash or correction, there are two possibilities from trading perspective — recovery depending on whether this is a V down or U curve. The U curve occurs when the market collapses, it takes a longer time for market to find the bottom and struggle to rise up. The V down is like a quick collapse — dropping down very fast and reaching the bottom, and then, with some catalyst event, either catalyst from market structure, or catalyst from the market expansion itself, suddenly it gives a boost and bounces right back up. For market recovery, besides all the investment and economics elements I’ve discussed above, I believe one critical factor is the regulatory development especially clear guidance from key regulatory bodies of those major financial markets such as US, UK, EU, etc. on those key building blocks I mentioned in the maturing market structure. Once those in place, more traditional institutional investors will be ready to get in and hence boost the liquidity and valuation of the digital assets. That is the new beginning of digital assets being accepted as part of Main Street investment globally.
First of all the year has not ended yet. We still have like 6 weeks till the end of this year. Probably many people here know me from the beginning. I know pros and cons and every detail of Icx from the very start. Almost exactly a year ago I found Icx as very promising and almost finished product which operated in a legit way. They didn't shill and had a big company behind them. I said to myself wow thats rare in this space. This could be something for the long term. Not just a short term thing. Because I knew from the start this space is so volatile and full of empty promises and lies. CEO looked like a nice guy but something bothered me about him. Probably his voice and non verbal communication. Fundamentals are strong and had a lot of connections to other companies. They did a public sale and held 50% of money to themselves. I said OK thats a lot but things I've written before prevailed. We were told a completely different roadmap and not just that. We were told things like DEX and token swap would be avaliable right away. Ok...around December 18th Icx got listed on Binance at high valuation and immediately dumped which triggered big recovery. I can remember Bitcoin shitting in its pants while Icx stood firm and held at 1.8$. Icx was gaining value while Bitcoin was falling. I said wow. That counts for something. They really have to be special. Ok shortly afterwards mainnet got delayed and we saw quite a big decline in price. I said ok thats nothing. 1 month delay in this industry is nothing. I can remember some delusional people but I was not one of them saying they delayed the mainnet because of Korean regulations. There were a LOT of hype because of that summit. Everyone had high hopes and the likes of Balina did their job too. Around 24th of January we saw mainnet launch which was done in an odd way. I had a bad feeling. There was a lot of misinformation and it was launched in last second. It had a bad taste somehow and I got that gut feeling saying to me that this thing will get late on just anything. We all saw that summit and for me things went as planned. I knew there would be no revolution and that I know everything. The only thing I didn't know is that they changed their roadmap. After that summit Bitcoin plunged and we saw total collapse of Icx. I said to myself fuck thats not good. But I didnt want to sell because I was a believer in them and that they are somehow different from the rest and that this will be the one and only cryptocurrencys besides Bitcoin I will hold. After that there were few partnerships signed with the likes of Kyber Network and so on. List of partnerships is still quite impressive. After that March came and big price dump before Bithumb listing. I said great! New exchanges but I already knew this thing won't go up because of koreans solely. Icx is popular in the west. At least for time being. After that peope realized koreans are not pumping korean ethereum and price dumped to 2$ again. April was shitty but Bitcoin recovered and sentiment changed and Consensus happened. Icx received a lot of recognition on Bloomberg with that bastard shilling Icx. We all knew what happened afterwards. Icx dumped to oblivion and those bastards dumped on sheeps. People got outraged with almost 3 month delay of token swap which lasted for fuckin 4 months. No DEX, no IISS, that ERC bug ok fuck it they handled it but there was some censorship and shady communication. But they fixed it so no bad blood for me. When team saw big price decline they announced rebranding, repurchase, AMA and better communication, transparency and open sourcing their code. I said wow. Thats not something I knew back in December. I knew they operated differently because of private entities. But all those things were bullcrap. At least it looks like that. Only rebranding occured and 2 parts of meaningless yellow paper. The only thing which matters is STAKING. I didn't sell because of that. Otherwise holding NEO or Tezos is much better option. So they gave us paper partnerships which I personally don't know the in depth details and how could that impact on Icon. We have a Chrome extension wallet, ledger integration, mobile wallet, ICONest which I dont know who is using, Icx station which currently I don't know they are doing, token swap and lots of missed deadlines, ICONist which adds nothing in extra added value to my knowledge and is directed towards noobs, hx57 community which is fine, some use cases for government but no actual use on the network. IMO whole year has had few glitches of great moments but generally this has been of of the worst investments ever among top 100. I can see some delusional people saying 3rd part isn't released beacuse of shitty market conditions. No shit? Icx have always thrown news into worst time. We can all remember that. So they could wait for a year or two? Thats retarded :) It was the best ICO yes, cashgrab for those who believed only in price. But for fools like me holding it a total disaster. I thought this could be the next big thing. It looked like that in the beginning but after that a complete total fuckin disaster. Does anyone remember that video in May with Balina in it? They were popping champagne and eating grilled meat. It looks like a big fucking CASHGRAB for guys which knew this thing is a steaming pile of shit. I could have cashed out at 120× too lol. At least majority. But no as beliver no way. :) Look at Satoshi chart and how we lost rankings on CMC. That isn't just bear market. Thats stupid assumption. We got deceived. I didn't capitulate but I got to this point I simply lost trust to this team. More than 124 people are working behind Icx and they can't do their fuckin job done with DEX? Sounds legit? For almost one year. And that bitch ass lame excuse saying they reorganised because of new partnerships? They raised money from the public and gave a moral oath to it. Sure legally they don't owe us nothing but from a moral standpoint they need to keep their good reputation and furfill their promises. Otherwise they are just some other pathetic crypto shit in crypto universe. And again its just money...I can live with failure but I cannot stand lies and "AMA" which is a direct insult for average people with an IQ around 100.
Find Out Why Institutions Will Flood the Bitcoin Market
As originally written via CoinLive: (improved reading experience) Back in 2017, the blockchain industry experienced an unprecedented interest which ended in what is often referred in financial terms as “irrational exuberance”, with a large portion of the rally led by retail-type investors flooding the market to ultimately chase prices at illogically hefty levels based on the infancy stage of the technological advancements and its implementations. That rise was too fast too quick and eventually, in early January 2018, the bubble-like move came to an abrupt end. The question now is, what will it take for another sustainable bull run to materialize? At CoinLive, we will inspect the key missing pieces of the puzzle. In this article, we will investigate the ever-growing list of evidence that shows why a new type of investors, the institutional ones, looks set to enter the market in mass. The two critical impediments for the ‘smart money’ to have been on the sidelines are clearly identifiable. Firstly, it has to do with custodianship, in other words, having formal mechanisms that allow the safe storage of the asset. Secondly, the regulation around the crypto market must be clarified with clearer guidance. When it comes to the first missing piece of custodianship, the NY Times recently helped shed a light on where we are headed. The influential newspaper reported that ICE (Intercontinental Exchange), which is the parent company behind the NY Stock Exchange (NYSE), is working confidentially in the implementation of swap contracts for banks and large investors that will be settled with the physical delivery of Bitcoin. For ICE to even consider this idea it means that the problem of legal custodianship is being worked out so that the backing and security of Bitcoins by the NYSE will be in place. This will open the floodgates to a whole new market, where the King of cryptos and other digital assets down the road become available to a much wider and more influential customer base. We are certainly at a stage where institutions have recognized that Bitcoin is “too big to ignore”. What’s also important is that by using a swap contract, the trading of Bitcoins will be oversight under the existing regulatory framework of the Commodity Futures Trading Commission, hence less regulatory uncertainty. As a reminder, the CFTC is headed by J. Christopher Giancarlo, who is a proclaimed pro-blockchain endorser after his popular appearance in front of a U.S. Senate hearing on blockchain technology last February, where he famously said: “We owe it to this generation to respect their interest in this new technology.” Moreover, earlier this year, Boston-based State Street, the world’s second-largest custody bank with around £24tn in assets under custody and administration, came out to announce that safeguarding clients' digital assets could be a service they are looking to provide a solution in the near future. If confirmed, it would represent a major move as it sets a precedent as the first global bank to provide custodianship services for crypto-related investments. While Bitcoin is not serving its initially intended purpose as a widely used method of payments (for now), it has found another appeal as a store of value that is uncorrelated to any other asset class, hence it has an exceptional use as a hedging strategy for multi-billion dollar portfolios to help reduce the overall volatility. Other stories strengthening the notion of institutional capital set to come into the cryptoverse include the news that Goldman Sachs will be trading futures contracts linked to Bitcoin’s price as an initial step, only to gradually transition into a more direct trading of buying and selling actual Bitcoins. Find our recent article where we explain why Goldman Sachs trading Bitcoin is such a big deal. Even the chief executive of Nasdaq, Adena Friedman, recently said considerations were being given to set up a virtual-currency exchange should the needed regulatory framework be resolved. Additionally, we have seen a growing trend of senior-level executives at institutional firms flocking off the safety of their well-established positions to venture into blockchain-related jobs. We include a few articles with evidence below: Goldman Sachs Executives are Moving to Cryptocurrency Hedge Funds Mike Novogratz Makes Goldman VP the COO of His Crypto Company Coinbase Hires Ex-Barclays Director to Expand Its Institutional Client Base Commonwealth Bank CFO to Lead Block.one as President and COO The migration in job positions from traditional financial markets into blockchain comes as no surprise and quite frankly, it appears to be a logical and rational step to be taken, especially in light of the new revenue streams the blockchain sector has to offer. Proof of that is the fact that Binance, a crypto exchange with around 200 employees and less than 1 year of operations has overcome Deutsche Bank, which has more than 100,000 employees and over 150 years of history, in total profits. What this communicates is that the opportunities to grow an institution’s revenue stream is formidable once they decide to integrate cryptocurrencies into their business models. Another piece of the puzzle, even if occurring behind closed doors, is the consideration to launch a Bitcoin ETF. Back in April, it was reported that the US Securities and Exchange Commission (SEC) has put back on the table two Bitcoin ETF proposals, according to public documents. The agency is under formal proceedings to approve a rule change that would allow NYSE Arca to list two exchange-traded funds (ETFs) proposed by fund provider ProShares. The introduction of an ETF would make Bitcoin available to a much wider share of market participants, with the ability to directly buy the asset at the click of a button, essentially simplifying the current complexity that involves having to deal with all the cumbersome steps currently in place. More evidence of the emergence of institutions playing a more dominant role in the blockchain industry is the unprecedented interest to amass Bitcoins in the OTC (Over the Counter Market). We perceive this trend as directly linked store Bitcoin as a store of value. This article by Bloomberg should give you a taste of what's happening behind the scenes: The Wealthy Are Hoarding $10 Billion of Bitcoin in Bunkers. As ConLive recently tweeted: "Our network of Insiders telling us between 5000-10.000 BTC are being sold every week OTC by Chinese BTC miners to Israeli buyers - Wall Street type - as they look to accumulate a big hand in BTC. “ !(https://coinlive.io/ckeditor_assets/pictures/868/content_2018-05-15_0957.png) Lastly, one of the most critical missing piece is the subject of global regulations. Back in March, Mark Carney, the head of Bank of England and the chief of the Financial Stability Board of G20 stated that “crypto-assets do not pose risks to global financial stability at this time.” That caused a temporary relief in the crypto sphere as the risk of a regulatory backlash was removed for the time being until July, the month when more clarity will be provided. The chair of the Argentina Central Bank, Federico Sturzenegger, on his role of sitting the G20 summit, said that members showed a unifying view on the need of cryptocurrencies to be supported by a more sound regulatory framework. The policy-maker, however, made it clear that they first need to examine the cryptocurrencies universe to gather the necessary data before proposing regulations. “In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?” Sturzenegger said. To sum up, the improvements in custodianship solutions, along with more clarity by the G20 committee, which is set to provide less uncertainty for institutional investors’ involvement, is a recipe for a renewed bull wave, this time of institutional capital, to shake up the crypto space. At CoinLive, we will not venture into the timing, as that is quite irresponsible trying to pretend we have a "crystal ball" to determine when moves will occur. We just simply look at the big picture and try to connect the dots by first breaking down the latest developments to then draw some conclusions. Never forget, markets should always be approached as a numbers' game, and while nothing is certain, we just attempt to envision and inform on scenarios with the highest likelihood.
Daily analysis of cryptocurrencies 20190906(Market index 43 — Fear state)
https://preview.redd.it/pnvbbdzyxyk31.jpg?width=540&format=pjpg&auto=webp&s=885431a626fcf2763a8e048211f8fd9c43c17952 [Samsung to release crypto-friendly edition of smartphone] Samsung Electronics will release another edition of Galaxy Note 10 smartphone with a pre-installed cryptocurrency wallet, according to a report by Coindesk on September 5. The new product is marketed as a “KlaytnPhone” and named after a blockchain network developed by Kakao. [Burundi Central Bank to take strong measures against crypto traders] The Republic of Burundi, a landlocked African nation, banned all cryptocurrency activities in the country, according to a report by Coindesk on September 4. The government wrote in a statement:”These virtual currencies are traded on unregulated online platforms around the world, and their values are highly volatile, resulting in speculative transactions that expose the users of these currencies to potential losses without no possibility of legal recourse in the event of a collapse of their value or in case of closure of these cryptocurrency exchange platform”. [NSA is working on quantum-resistant cryptocurrency] The United States’ National Security Agency(NSA) is working on developing quantum-resistant cryptocurrency, according to a report by Cointelegraph on September 5. Bloomberg Technology reporter William Turton made the claim in a tweet on September 4. He wrote:”Anne Neuberger, Director of NSA’s new Cybersecurity Directorate says that the agency will propose hardware and software standards again. Also notes agency is working to build quantum resistant crypto.”
Encrypted project calendar（September 06, 2019）
BTC/Bitcoin: Bakkt official Twitter said that Bakkt Warehouse will begin to provide Bitcoin secure storage services to customers on September 6.VEX/Vexanium:The Vexanium (VEX) DApps competition will end on September 6th with a total of 1.1 million VEX awards, the first of which will receive 350,000 VEX.ZCL/ZClassic:ZClassic (ZCL) Menetnet main network will be officially released on September 6, the test network has ended at the end of August.QKC/QuarkChain:QuarkChain (QKC) Shanghai Blockchain Technology Innovation Summit will be held on September 6th, and the CEO and CBO of the QuarkChain project will attend the conference.
Encrypted project calendar（September 07, 2019）
OKB/OKB:OKB (OKB) “2019 OKEx Talks” will be held in Nigeria and Tbilisi on September 7th.
Encrypted project calendar（September 08, 2019）
NPXS/Pundi X:Pundi X (NPXS) Binance DEX’s latest NPXS competition will end on September 8th, when participants will receive a total of 50 million NPXS awards.KCS/Kucoin exchange: The Ecocuum launched by Kucoin Shares (KCS)’s latest KuCoinPlay trading contest will end on September 8th, when 50K ENQ will be presented to 800 participants.
Encrypted project calendar（September 09, 2019）
MTL/Metal:Metal (MTL)’s latest fee structure will be implemented from September 9th. The fee reduction is at least 50 MTLs. The account transaction with 10,000 MTL or above is zero, but only for Metal Pay.ETP/Metaverse ETP:Metaverse (ETP) ETP holders can get 10 million DNA airdrops on the RightBTC exchange, and the event will end on September 9.
Encrypted project calendar（September 10, 2019）
BTC/Bitcoin:The DeFi Summit (London) will be held at Imperial College London from September 10th to 11th.TNS/Transcodium:Transcodium (TNS) WirePurse will be available on September 10th for AT tokens and will air-drop $3,000 worth of AT tokens to all WirePurse users.KICK/KickCoin:KickCoin (KICK) The KICK team extended the SWAP bonus event deadline to September 10 and added additional bonuses to encourage trading.
Encrypted project calendar（September 11, 2019）
BTC/Bitcoin:Invest: Asia 2019 Summit will be held in Singapore from September 11th to 12th.CLOAK/CloakCoin:CloakCoin (CLOAK) CloakCoin ENIGMA trading competition will end on September 11th, the second round will continue, with a prize of US$10,000 for CLOAK.PHPhore:The Phore (PHR) community needs to vote for the September core development budget proposal for Phore and the Marketplace and Synapse proposals by September 11.
Encrypted project calendar（September 12, 2019）
BNB/Binance Coin:Coin Security will stop providing services to US users on Binance.com on September 12thBCN/Bytecoin:Bytecoin (BCN) will release Copper v3.6.0 on September 12tHBT/Hubii Network:Hubii Network (HBT) hubii’s “Blockchain in Practice” campaign with Microsoft will be held on September 12th at the Microsoft office in Oslo.
Encrypted project calendar（September 13, 2019）
ETC/Ethereum Classic:ETC or will perform Atlantis hard fork on September 13th
Encrypted project calendar（September 14, 2019）
BTC/Bitcoin:The European Union will launch its name, Payment Services Directive 2 (PSD2), which will take effect on September 14. The new law includes banks implementing “strong customer certification”. In addition, according to previous news, PSD2 can obtain some of the functions of the banking industry, providing new payment solutions for encryption products.
Encrypted project calendar（September 15, 2019）
TRX/TRON:Wave field TRON launches side chain plan Sun Network network three-phase releaseWAN/Wanchain:Wanchain (WAN) will hold a 3Q community conference call in mid-September
Encrypted project calendar（September 16, 2019）
LINK/ChainLink:Chainlink (LINK) Oracle will host the Oracle Code One conference from September 16th to September 19th, at which it will announce the launch of 50 startups with Chainlink.MANA/Decentraland:The Decentraland (MANA) community will host the SDK hackathon on September 16.
Encrypted project calendar（September 20, 2019）
NULS / NULS: The NULS 2.0 Beta hackathon will be held from September 20th to September 21st, 2019.AE/Aeternity:Aeternity (AE) will hold “Cosmos One” conference in Prague, Czech Republic on September 20th
https://preview.redd.it/qai6wi66yyk31.png?width=630&format=png&auto=webp&s=4e49b8614961bd66a4b3f9e13e281c1c0b35d218 BTC currently offers $10,705, an increase of 1.52% in the day. In view of the current trend, the current BTC is still operating in the large falling triangle range of the first peak of 14,000 USD, and after the third downward touch of the triangle at the end of August, it has been in a continuous rebound trend for several days. It has also risen from the low of $9,400 to the current level of $10,700. The upper key resistance zone is between $10,800 and $11,000. It is also the main daily resistance trend line. If it can make a strong breakthrough, then from the end of June to the end of June. The callback trend during the beginning of the month may be reversed, and the BTC will likely be in the early stage of the bullish trend. In terms of technical graphics, BTC’s current triangle convergence trend is similar to the BTC’s bear market bottoming trend from December to early 1918. Both trends are in the upper and lower range of the triangle, and when the last time they touched the lower triangle line, The market sentiment has similarities: BTC continues to fall below $3,500, and most investors in the market feel that BTC is still not in the end, there is still room for decline, the market is generally bearish to around $2,000, and the panic greed index is below 20 Then, the BTC’s large Yangyang line increased in volume, and after a small correction, it came to a big Yangxian line, directly breaking through the triangular upper rail suppression, and then opened the slow-moving market with the bottom stepping up. At present, BTC hit the triangle lower rail last time. The market also generally believes that BTC may puncture the support line and then fall back below $9000. The panic greed index is also below 20, reflecting the panic of most investors at that time. The trend is always the opposite of most investors. BTC has once again started to rebound and has been rising to the current level of 10,700 US dollars. If the direct strength of the triangle is stabilized, it will be possible to directly open the upswing in the late period of slowing up. Review previous articles:https://firstname.lastname@example.org Telegram： https://t.me/Lay126 Twitter：https://twitter.com/mianhuai8 Facebook：https://www.facebook.com/profile.php?id=100022246432745 Reddi：https://www.reddit.com/useliuidaxmn LinkedIn：https://www.linkedin.com/in/liu-wei-294a12176/
CryptoKitties Ran Wild on Ethereum First. Now Tether Is Clogging the Digital Ledger
The digital ledger behind the supposed better version of Bitcoin is running out of capacity. That was the warning last week from Ethereum co-founder Vitalik Buterin, who noted that the cost of processing transactions done in the digital token Ether on the underlying blockchain may get too expensive for some users. Ether’s network utilization has spiked into the 90% level, according to tracker Etherscan. As utilization increases, transactions costs could follow suit, possibly making potential corporate users hesitate to use Ethereum, Buterin said. Almost two years ago, Ethereum was getting clogged up as the digital game CryptoKitties took off. Then thousands of initial coin offerings, which turned out to be mostly scams, took up space on the network. More recently, though, as a majority of the ICOs went bust, a new tenant is taking over Ethereum: The controversial coin known as Tether. In the last 30 days, Tether paid computers which process transactions on Ethereum’s digital ledger $260,000 in fees, according to data researcher Ethgasstation. That’s about 17.5 times more than CryptoKitties and six times more than the world’s largest distributed exchange, IDEX. Tether’s use has been growing, as more of the coin has been issued. Its market capitalization recently passed $4 billion, up from $2.7 billion a year ago, according to CoinMarketCap. And at least 40% of all Tether runs on the Ethereum network, John Griffin, a finance professor at University of Texas at Austin, estimated in July. Tether was used in 40% and 80% of all transactions on two of the world’s top crypto exchanges, Binance and Huobi, respectively, Coin Metrics said recently. As Tether takes up more capacity, that leaves less for other developers. Ethereum was touted by enthusiasts when it was created as a better Bitcoin—one with extra features that would let people automate tasks and even set up so-called autonomous corporations, ones that run themselves via software. But most of the most popular so-called dapps—apps designed for such networks—currently run on competing digital ledgers, according to tracker DappRadar. Some developers are staying away from Ethereum for now, waiting for it to tweak its technology to increase network capacity, said Jeff Dorman, chief investment officer at Arca, a Los Angeles-based asset manager that invests in cryptocurrencies and other digital tokens. “So the biggest implication today is simply that developers may be incentivized to wait until this transition happens before fully committing to build on Ethereum,” Dorman said. “Tether isn’t helping.” Ethereum is still working to figure out how to get to its ambitious vision of Ethereum 2.0—requiring a major overhaul of its technology that some worry may not even work. While Ethereum currently employs computers called miners to verify transactions—a setup Bitcoin uses as well—it’s moving to so-called staking, a completely different way of verifying transactions. Techniques such as sharding, in which certain groups of computers keeping track of only certain transactions versus all transactions on the network—should help as well. But this technological transition “is not a guarantee and is still on the horizon,” Dorman said. “The Ethereum blockchain has been ‘almost full for years,”’ Buterin said in an email to Bloomberg. “I think it’s still good to develop apps, but anything substantial should be developed with scalability techniques in mind, so that it can survive higher transaction fees that would come with further growing demand for Ethereum. In the longer term, Ethereum 2.0’s sharding will of course fix these issues.” The number of Ethereum transactions is actually down from their peak in January 2018, according to Etherscan. Average Ethereum transaction fees are still many times lower than Bitcoin’s, but they’ve been volatile, according to BitInfoCharts. Tether was introduced in 2015 as a way to provide liquidity to exchanges because lingering concerns about illegal uses have made it difficult for them to secure banking services. New York’s attorney general in April accused the companies behind Tether of engaging in a cover-up to hide losses and co-mingling client and corporate funds.
Crypto moves way too fast for me to keep up, so I started making a list of each day's biggest headline. Below is my list for last month. My main news source was reddit. My main holdings are ETH and NANO, but I tried to make the list as unbiased as possible. Hope you like this, and let me know if you have any feedback! 1/1 – Ethereum releases the Casper proof of stake protocol to its test network. 1/2 – Despite Verge’s claims of concealing users’ IP address info in their Wraith release, a website is discovered which publishes the IP addresses of all Verge transaction participants. 1/3 – Bitcoin celebrates the 9th anniversary of the genesis block. 1/4 – NEO breaks the $100 barrier. 1/5 – Facebook CEO Mark Zuckerberg announces plan to integrate cryptocurrencies into Facebook services. 1/6 – TRON breaks the $10 billion market cap barrier and becomes a top 10 crypto amid accusations of whitepaper plagiarism and fears of the project’s legitimacy. 1/7 – After a 2-week swap, Ethereum retakes the #2 crypto spot from Ripple. 1/8 – Cryptos on South Korea and Chinese exchanges are being traded at over a 50% premium compared to their western counterparts. This causes Coinmarketcap to classify those prices as outliers, and subsequently flash crashes the market. 1/9 – RaiBlocks is officially named the winner of January’s Binance community vote. 1/10 – South Korea proposes legislation to ban crypto trading, flash crashing the market. They roll back the announcement 4 hours later. 1/11 – Moneygram announces a partnership with Ripple in a pilot program for crypto payments. 1/12 - Twitch begins accepting Bitcoin and transfers from Coinbase accounts as means of payment. 1/13 - Walton announces plans to work with China Mobile IoT Alliance on integration. 1/14 - VeChain announces partnership with China’s National Tobacco Corporation and State Tobacco Monopoly Administration. 1/15 - Mark Cuban says that his basketball team the Dallas Mavericks will accept Bitcoin and Ether as payment for tickets next season. 1/16 - Increased concerns over tightened cryptocurrency trading regulations in South Korea, China, and France, as well as calls from Germany for international cooperation to regulate the market, cause prices of top coins to fall 30%. 1/17 - Long suspected of running a Ponzi scheme, BitConnect shuts down both its trading and lending platforms and releases all locked BCC tokens. This causes its price to fall 95%. 1/18 - The South Korean Financial Supervisory Service reports that several government officials were caught insider trading immediately prior to the January 10th crypto exchange ban announcement. 1/19 - ICON partners with Kyber Network with plans to use Kyber’s crypto-exchange services to connect ICON with other blockchains. 1/20 - The National Research Council of Canada says that it is using the Ethereum blockchain to proactively publish research grants. 1/21 - Johann Jungwirth, the chief digital officer of Volkswagen, joins the IOTA Foundation as an advisor. 1/22 - South Korean government officials announce that they plan to collect up to 24.8% in corporate and income taxes from cryptocurrency exchanges based in the country. 1/23 - Online payment toolkit developer Stripe announce in a blog post that they are dropping support for Bitcoin, citing increased transaction times, fees, and price volatility. They also express interest in supporting other cryptocurrencies, including OmiseGo, Ethereum, and Stellar. 1/24 - Rating agency Weiss releases the first ever cryptocurrency ratings for the top 74 coins. Ethereum and EOS receive a B, the highest grade in the first round, with Cardano, NEO, and Steem the next highest with a B-. 1/25 - Popular stock-trading app Robinhood adds support for 16 cryptocurrencies in 5 US states, with Bitcoin and Ethereum the first to be tradeable. 1/26 - Popular Japanese exchange Coincheck gets hacked, resulting in the theft of 526 million XEM ($400 million) and 101 milion XRP ($130 million), the largest crypto theft from an exchange in history. 1/27 - Amid accusations of insolvency, Tether announces that its partnership with auditing firm Friedman LLP has been dissolved. 1/28 - Online South Korean mall 위메프 begins accepting 12 different cryptocurrencies as payment, including Bitcoin, Ether, and Ripple. 1/29 - Walton affiliate Xiamen Citylink signs a research sharing and IoT ecosystem services deal with the Zhangzouh branch of China Telecom Corporation. 1/30 - A Bloomberg article states that Tether was issued a subpoena by the U.S. Commodity Futures Trading Commision in December. This was due to a lack of conclusive evidence that the USD holdings that back the cryptocurrency exist. Bitfinex, the world’s 4th largest exchange by volume and supporter of Tether, was also subpoenaed. 1/31 - RaiBlocks announces that it is rebranding to Nano.
Thermodynamics & Silent Weapons for Secret Wars or Crypto Anarchy 101: Statists Failing & Anarchists Thriving
Crypto Anarchy 101: Statists Failing & Anarchists Thriving The black-market, the free-market, is what kept people alive throughout the worst of oppressions. The black market has been the art of surviving amidst all types of tyrannies and slaveries. The black market, aka System D, is something that everyone in the world will need to start getting comfortable with. CryptoAnarchy is the ultimate manifestation of complete market freedom, and it is here to stay. Libertarians are beginning to finally realize their incredible advantage within this new market environment. The unfortunate statist masses have been programmed to feel uncomfortable with the mere idea of complete market freedom. Keep in mind that as of 2009, half of the world’s workers- around 1.8 billion – were employed by System D. The black market is only expected to grow even more so with the incentive structures being built out in order to advance the technological advancements of cryptography. Humanity has never experienced a true free-market until now. For the first time in history one is beginning to take shape. The traditional business sector is beginning to realize that they are not even mentally equipped for the implications of having applied cryptography that is powered by market incentives. This is evident in their trite attempts at integrating these new technologies with traditional banking and financial systems. Their lack of creativity, and dependence on government, is a clear testament to how much they will be hurt in the coming future. Statists Double Down after Failure: Tether and Stablecoins Many within the crypto space have attempted to bridge the gap between legacy banking and cryptocurrencies. Amongst the various attempts at capitalizing with these new technologies, the idea of a stablecoin entered the space via Tether (USDT). A stable coin is a cryptocurrency that is pegged on a 1 to 1 ratio to the US dollar, or any other asset- like gold- or fiat. Tether operated as a stable coin pegged to the US dollar on a 1 to 1 ratio. The biggest attribute behind stablecoins resided in their ability to provide stability in an otherwise volatile market. For a long time many within the crypto space were curious about Tether’s means of operating with USD. Earlier this year TDV was the first entity to exclusively reported to its subscribers the origin of Tether’s “secret sauce;” fractional reserve banking. The laws of fractional reserve banking allowed the Noble Bank of Puerto Rico to provide Tether with the legal means of operating as a stable coin pegged to the US dollar. The Noble Bank recently went bankrupt due to being insolvent. Noble Bank was the bank of Bitfinex and Tether. As a result, Tether and Bitfinex ended their relationship with Noble Bank. It is important that you as a subscriber move your crypto out of Bitfinex. You should never keep your cryptoin exchanges. When you do this you don’t actually control the private keys of your coins. (If you are an active trader, please consider using Bisq. Bisq is an open source decentralized exchange that does not control your private keys while trading. It is the most Anarchist exchange in the market right now.) After losing its partnership with Noble Bank, Bitfinex began banking with HSBC. On October 15th, Bitfinex tweeted that their fiat deposit system was re-enabled. Overall, Bitfinex is still in the midst of reorganizing itself as an exchange with proper banking liquidity. For this reason we are of the opinion that it is best to stay away from Bitfinex until they are more solvent in their banking partnerships. Tether (USDT) on the other hand is suffering from a lack of proper banking structures. Binance paused all USDT withdrawals and KuCoin, the exchange, also paused USDT deposits and withdrawals. Tether is currently at around 2.1bn dollar market cap. Tether holders are having a difficult time cashing out of their Tether for USD. It is expected that unless Tether gets its banking situation sorted out, we will see movement out of Tether. This situation has caused the price of Tether to hit a low of $0.90 to the USD. As of writing this, Tether is trading at around $0.97 to the dollar. The situation for Tether is dire at the present moment. We expect to see many Tether holders drop their Tether for Bitcoin, or other more cryptographically secure cryptocurrencies. This will more than likely be one of the main strategies that will be implemented in order to cash out of Tether. This overall situation is once again showing us how unstable things are when dealing with fiat. We hope for the market to realize that there is more security in cryptocurrencies than there is in fiat backed stablecoins. Stablecoins will always have the instability of the fiat currencies that they are pegged to. The time will eventually come when people will realize that cryptocurrencies are a better store of value than stablecoins. In spite of all of the issues circulating Tether, statist entrepreneurs are doubling down on their desire for stablecoins. We are seeing the beginning of what we believe will be a trend in the upcoming future; that is, stable coins pegged to various countries’ fiat and assets like precious metals. The new USD stablecoins recently announced to the market are GeminiUSD, TrueUSD, and Paxos Standard. Volatility as a Sign of Life in the Market Contrary to the statist perception on volatility, one can also view volatility in crypto as proper to a market that is fully alive. Crypto, for the first time in history, freed the market from bankster manipulation. Arguably, volatility is to be expected in an unregulated free-market where everyone in the world is for the first time welcomed to participate. In comparison to the legacy financial system, crypto is fully alive while the former is handicapped by regulations, coercion, and disconnected from true free-market signals. That is, volatility signals of a free-market that breathes freely for the first time. Volatility is indicative of a market that is fully alive. The desire for individuals to attach crypto to the legacy financial system, under the pretense of “less volatility,” is indicative of individuals that will have a hard time operating outside the bounds of regulation and government coercion. As long as we have statists uncomfortable with Anarchy, we will have stablecoins pegged to fiat. Various Libertarian entrepreneurs are also beginning to dabble with the idea of a stablecoin that is pegged to precious metals. The challenge of these projects will be the same regulation that oversees fiat. Remember that the difference offered to the world by cryptocurrencies resides in crypto’s ability to operate freely within System D, without regulation. It is this new market, the true free-market, that for the first time is unstoppable. Bitfinex’s Effect on EOS Bitfinex is one of the entities that holds the greatest amount of votes for EOS Block Producers (BPs). For this and other reasons, we are currently expecting a shakeup of votes for selected top BPs. It is important that you remain attentive to the happenings within EOS and move your votes accordingly. We will soon be coming out with more details on our perceptions regarding various BPs. There are various discussions regarding BPs pending arbitration. This is a good thing. All shakeups lead us closer to more transparency and accountability. This should not directly affect the price of EOS, aside from what will result from the expected FUD of future BP shake-ups. The Resilience of CryptoAnarchy after Blockstream’s Fake Sidechain Amongst the various innovations within Bitcoin, sidechains have- for the past 5 years- existed as one of the holy grails of innovation. Blockstream, as a company, was put together to manifest sidechains. They sold us the concept of a sidechain as they were sourcing capital during their first rounds of investment; this was in October of 2014. Sidechains were supposed to be delivered by Blockstream as a way to make Bitcoin innovation competitive to that of altcoin innovation. Sidechains were supposed to be “the Altcoin killer.” After all of this time, Blockstream only delivered Liquid - which is not a sidechain- and called it a “sidechain.” That is, Liquid is not a sidechain when properly defined. Liquid is a multi-signature layer that allows for multiple exchanges to pool their money together to transfer funds amongst themselves. Liquid is not a true sidechain, it is more precisely a multi-signature wallet. Calling Liquid a “sidechain” was just a marketing scheme by Blockstream in order to impress the illusion that they had delivered what they had promised. They didn’t. Blockstream gave up in attempting to create a true sidechain and created a multi-signature wallet instead. Keep in mind that Liquid is a “private sidechain.” Note that a proper sidechain ought to be made with open-source innovation in mind. Many of us see the actions of Blockstream as a bait and switch marketing scheme. (For the rest of this article I will use the words “Drivechains” and “sidechains” interchangeably as synonyms. Drivechains are what sidechains originally were supposed to be- according to the original Blockstream Sidechain white paper. Blockstream’s bait and switch marketing scheme led to them calling “sidechain” a multisignature wallet that is not at all what they promoted on their white paper. Paul Sztorc, in an attempt to differentiate himself from the Blockstream perversion of the word “sidechains,” called his development of true sidechains “Drivechains.”) Drivechain Sidechains Paul Sztorc, the creator of decentralized prediction markets, was very much looking forward to Blockstream’s creation of sidechains. It was his hope that his decentralized prediction market would run as a Bitcoin sidechain. At about the end of 2015 Sztorc was done with BitcoinHiveMind, his decentralized predictions market (previously known as TruthCoin). After realizing that Blockstream was not going to deliver on sidechains, as promised, Sztorc felt he needed to build it himself. The creation of his Drivechains started off as a means to an end for Sztorc; he needed true Sidechains for his decentralized predictions market- so he build it himself. On September 24, 2018 Paul Sztorc announced the launch of the first Drivechain release. This release was accompanied with fervent followingof old-school Bitcoiners that immediately jumped into experimenting with Drivechains on the testnet known as “Testdrive.” The Drivechain protocol is an alternative to the sidechain project originally proposed by Blockstream. It is a simpler design that enables blockchain compatibility in which the system still utilizes the same 21 million bitcoin ruleset- the Nakamoto consensus. Drivechains are intended to allow for permissionless innovation without diluting or challenging the value of the main cryptocurrency. Contrary to other means of innovation within crypto, any innovation that comes from a Drivechain sidechain actually adds value to the Bitcoin protocol- for it does not dilute the main cryptocurrency. Satoshi vaguely discussed the importance of the ideas of sidechains and multi-blockchain connectivity on June 17, 2010. This creation, of providing varied market options, make infighting and political discourses regarding consensus upgrades now seem infantile. Drivechains will provide the market with ongoing competitive solutions for blockchain development. Investors will now be exposed to options that would otherwise have been shunned in a less free environment. The strategic advantage of Drivechain sidechains is that they will offer investors various options in the form of alternative chains. It is important to keep in mind that Drivechains are available for blockchains with the same UTXO set. That is, Drivechains are available for both BitcoinCore (BTC) and BitcoinCash (BCH). How Drivechains work Namecoin was the vision of early Bitcoin adopters of creating a DNS and identity infrastructure based on Bitcoin; that is, .bit DNS. This technology piggy backed on top of Bitcoin mining. That is, if you so chose you could merged-mined Namecoin alongside BTC or BCH. Namecoin can absorb hashrate from BTC or BCH without needing its own miners. Merge-mining with BTC or BCH is also the process of validating and safeguarding Drivechain sidechains. Unlike Namecoin, Drivechain sidechains don’t require miners to run special software. For Drivechain sidechains miners implement what is known as blind-merge-mining. In blind-merge-mining the nodes of the sidechain run the software, not the miners. This operates under the assumption that the nodes running the software also hold BTC or BCH. A payment fee is paid to miners to blind-merge-mine the sidechain, in a similar way that Namecoin merge-mining pays a fee. In this process, miners don’t have to run any software- they just passively make money for blind-merge-mining blocks with sidechains. The main difference with sidechains is that you are not mining another coin like Namecoin, but rather you are mining the same BTC or BCH in another sidechain when you do the blind-merge-mining. Miners don’t get paid with the sidechain, they receive payment from the mainchain that they already trust when they blind-merge-mine. Miners are also economically benefited by always getting paid in the superior coin that they are already intentionally mining; BTC or BCH. As BTC or BCH moves in and out from the mainchain to a sidechain, there might be claims of ownership that may cause disputes. Drivechain prevents this by emphasizing the superiority of the mainchain over sidechains. Sidechains have to report on exactly what it is doing- at all times- to the main chain. Whenever a sidechain wants to transfer money back to the mainchain it has to do it very slowly. This safeguards the network from theft. The slow movement of funds from the sidechain to the mainchain can be arbitrage by individuals who will be willing to purchase sidechain receipts for BTC or BCH coming from sidechains at a discount. People will also be able to do atomic swaps between chains in the near future. (Atomic swaps, or atomic cross chain trading, is the exchange of one cryptocurrency to another cryptocurrency, without the need of trusting a third-party). It is the intent of Drivechains to create the interaction of miners with sidechains as seamless as possible. However, it is still important to have guarantee that money ends up in the right place. This is the reason for the slow movement of funds from sidechains to the mainchain. The movement of a certain amount of transactions coming from a sidechain to the mainchain is batched up into one transaction with its own transaction ID. This transaction is frozen in place where miners and developers can examine it for at least a month (there are talks of even making this process longer between 3 to 6 months). During this time miners vote on whether to allow the payment to go through or not. Upon receiving enough upvotes, the batched up transactions are released unto the mainchain. The slowing down of movement of BTC or BCH from sidechains to mainchain decreases the threat of miners stealing BTC or BCH from a sidechain. The sidechains are always watching the mainchain, so they know to credit people immediately when the mainchain sends money to it. Sidechains also know when the miners have accepted the release of batched up locked funds that are released unto the mainchain. Once the sidechain receives notification of the miners acceptance of funds in the mainchain, the sidechain destroys the funds that were frozen awaiting miner upvotes. It is overall acknowledged that sidechains increase the value of BTC and BCH, which eventually make mining more profitable. It would be counterproductive for miners to attack and steal funds from sidechains. That is, miners acting maliciously decreases the value of their own equipment. In spite of this fact, it is good that Drivechains make it increasingly more difficult for theft to occur. Miners, through their voting process, also get to punish bad sidechain actors. Any malicious sidechain will be cleaned out by miners. This is the opposite of the Ethereum model where anyone can code anything into the Ethereum blockchain, to the point that it could become a detriment to the Ethereum mainchain itself. That is, anyone can create a new ERC20 or ERC721 token without any vetting from the network. Coins are moved from the mainchain to the sidechain by means of sending coins to an address that represents the sending of funds from the mainchain to the sidechain. Anyone running the given sidechain software will recognize that funds were sent to the sidechain- this will automatically credit the person with the same amount of BTC or BCH on the sidechain. Also, the sidechain is programmed to recognize the reception of funds unto the mainchain address from where it will automatically credit the user the same amount of BTC or BCH unto a sidechain wallet. People on the mainchain don’t have to know anything about this particular address. As far as they know, it is just another address. Embrace the Spontaneous Order of Market Anarchy It is important that people within BTC and BCH take on a more Hayekian approach to entrepreneurship. Many within crypto are uncomfortable with the mere notion of spontaneous order. It is important that we as Ancaps lead the way in motivating people to experiment with their entrepreneurship. In the past few years, the desire of individuals to covet the development of crypto has become more apparent. These people need to be ignored. No one is the leader of Bitcoin or crypto development. The best innovators within crypto are those that create tools that empower other entrepreneurs to create more options. It is this spontaneous order that we should welcome and promote at all times. Many within BTC and BCH will not accept or feel comfortable with the radical spontaneous order enabled by Drivechains. This is good reasonto brush up on your Austrian Economics in order to properly confront minds that are fearful of human freedom. The Ancap entrepreneurs who are most comfortable with spontaneous order will be the same ones who will produce the greatest amount of value. The development of CryptoAnarchy is guided by the science of praxeology and Austrian Economics. Drivechains are testament to the augmentation of our libertarian order are necessary for CryptoAnarchy to thrive. Drivechains and Investment Strategy The philosophical and economic advantage of sidechain innovation is that it enables the development of BTC and BCH with an investor-centric intention. It is the market’s investment that now decides the best means for scaling and development. Politics and propaganda take an almost insignificant backseat to that of market forces. The technology is now readily available for investors to test drive with their BTC or BCH on any given proposed sidechain. That is, you actually get to experience the value, or lack of value of a new innovation without jeopardizing your position as an investor. All investment decisions are about strategy. Sidechains empower the investor’s strategy by allowing the investor to survey all of the possible value propositions of his/her original investment without having to incur any actual costs. In a similar way, sidechains also provide developers with quick market feedback on the aspects of development that are most favored by the market. Drivechains are a pivotal step in maturing the crypto space into becoming more conscientious in considering the investment strategy of those buying the coins. It is important for innovators to start taking the investor’s strategy into account. Drivechains force developers to consider what is best for the investor, not just what is desired by a given team of developers. Here we have not only a better proposition for investors, but also an incentive for developers to use Drivechains in future crypto experimentation. When experimenting with an altcoin, the measure of success is contingent on this new altcoin gathering a new pool of investors to literally buy into the project. With a sidechain you are already dealing with a more seasoned group of investors that will provide you with more accurate market feedback, being that their investment is now fortified by all other sidechain experimentations that they have already tested at no cost. Altcoins will soon no longer be the locus of innovation within crypto. All future innovation will be offered the option to experiment within BTC or BCH via sidechains. Keep in mind that all previous innovations, already tested in the market by successful altcoins, are now easily adopted by BTC or BCH. It is also important to note that creative experimentation on sidechains do not at all jeopardize the mainnets of BTC or BCH. On the contrary, sidechains will make BTC and BCH much more valuable. When the Drivechain craze begins we will see a BTC and BCH bull run. Don’t be surprised if sidechains are the main reason for the next all time highs. Statists Failing & Anarchists Thriving It is important that we understand that the legacy banking system is completely dead. They are barely adopting simulations of cryptocurrencies unto their banking structures to stay alive. Stablecoins are a manifestation of this bankster angst to remain current. True market innovation is found in the embrace of Market Anarchy. CryptoAnarchy is growing exponentially with tools that are beyond the reach of state megalomaniacs. Drivechains are an example of the CryptoAnarchist tools that will result in further anti-fragility of this new crypto free-market. Proper Austrian Economic incentive structures coupled with applied cryptography is our lethal weapon against nation states and central banks. Arguably, our Ancap philosophy is what guides applied cryptography in the market towards success. For this reason it is important that we keep revisiting the texts of Rothbard, Mises, Hayek, and Konkin throughout our crypto endeavors. Peace! by Rafael LaVerde Source TL;DR: How familiar are you with thermodynamics and silent weapons for secret wars? How familiar are you with the Brave New World Order?
https://ternion.io/?utm_source=bitcointalk&utm_reddit=bounty Bridging the gap between traditional and decentralized finances Ternion is a licensed cryptocurrency exchange based in Estonia offering first class fiat-to-crypto and crypto-to-crypto exchange and payment processing solutions. Holding a cryptocurrency license that will provide a platform for institutions to interact with the Blockchain, Ternion OÜ will launch a fully functioning exchange platform during 2018. The Ternion ecosystem is made up of three pillars: Ternion Exchange, Ternion Payments and Ternion Liquidity Fund. Ternion blends the security of traditional financial platforms within the framework of a cryptocurrency exchange. Ternion offers contributors seamless transition between the old world of fiat currencies and the new world of Cryptocurrencies. As liquidity on the centralized exchange increases, Ternion Exchange will incorporate a decentralized exchange (DEX) platform. The Ternion Ecosystem provides a real solution for all legal financial institutions that are understandably nervous to utilize the growing cryptocurrency exchanges, by operating under a license [FVR000209]. This license will allow institutions to safely operate with cryptocurrencies. The Ternion Exchange provides a simple, secure and diverse offering with full customer support. The payment processor will enable Ternion’s customers and merchant partners to seamlessly integrate cryptocurrencies into their day-today lives. The total market capitalisation for the cryptocurrency sector suddenly increased by $600bn during the last months of 2017. While Bitcoin made up a significant portion of the growth, rising by over $200bn over the course of the year, a number of other alternative cryptocurrencies (Altcoins) followed the same trend. Overall trading volumes grew accordingly within the same period arriving at a peak of over $50Bn in 24 hours, in the same range as the NYSE’s average volume. With increased demand on trading platforms a number of the core exchanges suffered Denial of Service (DoS) as their infrastructure was not ready to handle such rapid increases in trading volume. The end results for the user was a slow service, missed opportunity and in some cases significant losses, as traders were unable to liquidate their open positions. Since that situation, exchanges have consolidated their operations and teams, but there is still a generalized lack of gateways to access the crypto space, representing a problem for contributors that need quick in and out from Crypto to Fiat and vice versa. Cryptocurrency exchanges have been setting up operations in countries across the world at an accelerating speed. One of the main data aggregators in the market, CryptoCompare. com, counts 120+ exchanges globally. These exchanges differentiate themselves on a number of elements, including: size, model (centralized or decentralized) and number of assets traded. The top 10 exchanges are generating well in excess of $3 million in fees a day, or more than $1 billion per year (Bloomberg). While these figures are not exact, the magnitude of cash flows currently associated with the cryptocurrency exchange sector is vast. The largest exchange by volume is currently Binance. Binance alone registered $200M net profit in the first quarter of 2018, an increase of over 2800% versus the previous quarter. According to data compiled by the smart contract platform Aelf, Asia based exchanges such as Huobi, Bitfinex, Upbit and Bithumb process between $600 million and $1.4 billion of daily trading volume and charge fees of 0.3% on average, making Asia accounting for half of the crypto currency global trading. https://ternion.io/ An interesting phenomenon that came with the second half of 2017 is the launch of Exchange Tokens, used by exchange users to access additional services or discounts. The first to introduce this concept was Binance with the BNB token, raising $15million at ICO. The Binance coin attracted the attention of tech and investment world, through both the novelty of the asset and the value that it promised to bring to the users. Kucoin subsequently launched a similar model with “Kucoin Share” and 2018 saw the arrival of Huobi exchange token that raised $300 Million in its ICO. Exchange tokens are useful assets for the traders to benefit from discounts and access to exclusive rights. The value creation process is straightforward: the more the system incentives the use of tokens the more the utility for the users and the more the value for the traders. Ternion provides a token that balances utility with appreciation, within a system that cares about its customers by sharing with them shares of its profits periodically and transparently Why Blockchain? Why Blockchain? In order to get cryptocurrency implemented worldwide, we need a good crypto exchange and it starts with blockchain. Blockchain is decentralized and it liberates people and allows them freedom and control of their assets. Blockchain allows you to use and move cryptocurrency around the world. Challenges to Cryptocurrency Adoption Cryptocurrency as an asset class seeks to address inefficiencies within the global payments industry. These currencies resolve a number of functional problems that arise with centrally governed, national payment architectures. These currencies improve transaction cost and speed, they are censorship resistance, they enhance user privacy and they allow uninterrupted ownership access. Aside from the many benefits this asset class brings, various parties still refuse to pay with or accept payment in cryptocurrency. The challenges to cryptocurrency adoption can be segmented into three parts; The Technology, The Cryptofinance Market and Social Awareness. Cryptocurrency technology is still in the foundation building stage of its development and last year saw cryptocurrency interest exceed the overall capabilities of the technology. There were examples of this in both the Bitcoin and Ethereum where users were unable to complete transactions in an affordable and timely manner, as a result of million in its ICO. Exchange tokens are useful assets for the traders to benefit from discounts and access to exclusive rights. The value creation process is straightforward: the more the system incentives the use of tokens the more the utility for the users and the more the value for the traders. Ternion provides a token that balances utility with appreciation, within a system that cares about its customers by sharing with them shares of its profits periodically and transparently. 3.1 Challenges to Cryptocurrency Adoption overcrowding. Within the context of the cryptofinance market, since cryptocurrencies aren’t issued by a central authority, they possess an inherent level of uncertainty. Their value is instead derived from a combination of foundational monetary economics (the equilibrium between Supply and Demand) as well as the speculative nature that accompanies the development of a groundbreaking technology. Finally, social awareness of cryptocurrencies still has a long way to develop. In the current technological landscape there continue to be significant challenges for the everyday investor to purchase and actively trade this asset class. We see a significant gap in the market for a trading platform that improves social awareness through exceptional customer service and a familiar user interface. At Ternion we are focused on improving the user experience and opening the market to the vast majority of contributors not currently active in the cryptocurrency space. https://ternion.io/?utm_source=bitcointalk&utm_reddit=bounty Market Opportunities\* There is a crypto market trend that can be observed by looking at the trading volume of crypto exchanges. Top three exchanges on the market, Bitmex, Okex and Binance, are relatively new and they do not offer fiat-tocrypto trading. There are only old crypto-to-fiat exchanges which still have less trading volume than the new crypto - crypto exchanges. Kraken, for example, ranks 11th according to CoinMarketCap although it became operational long before the Crypto mega rally. All new exchanges with the most volume don’t offer an ability to do wire transfers in fiat currencies, e.g. Huobi and Binance. There is a deficit of fiat to crypto exchanges on the market. And a new Crypto to Fiat exchange can definitely become a turning point for the market. These market findings mean that there is a vigorous undersupply of fiat-to-crypto exchanges that exposes a market opportunity for new and sound exchanges that offer such option. Even the Upbit Exchange that has Korean Won ranks 7th. Thus, providing a good regulated exchange with a fiat deposit in EUR and USD will open a door to the Global market and has a lot of potential to be a large market player on a global scale. The Ternion Exchange offers fiat-tocrypto trading and due to being licensed, it will efficiently climb the ladder on the CoinMarketCap after the launch of full public trading thanks to the availability of trading for auditable institutions all around the world. Traditional investors Ternion caters to the needs of traditional investors by providing an ease of transaction, issuing cards to the users and allowing them to pay for services and goods using a cryptocurrency at different merchant partners. Due to the integration of the exchange, the transactions are extremely efficient, the fees are quite low, and the volatility is kept at bay. The usage of the products is easy: users can download an app on their smartphone and always have an oversight of their finances at their fingertips. Furthermore, Ternion offers top-notch 24/7 customer support. The platform has multiple technical analysis tools and it can facilitate a large number of customers at the same time. There is also a high capacity of plugins available for Ternion to implement in the system, including, but not limited to, behavioural risk analysis and prediction markets. Institutional investors Investors can easily and safely benefit from the cryptocurrency market due to the infrastructure provided by Ternion. The Ternion Exchange is regulated and licensed by an EU authority. It will undergo yearly audits for the purposes of transparency and it offers segregated customer accounts for all investors. It offers constant and high-quality 24/7 support and a possibility to do wire transfers. https://ternion.io/?utm_source=bitcointalk&utm_reddit=bounty
This week’s jump in Bitcoin prices revived themes well known to the digital currency that inflated then burst less than two years ago. Among them: enormous volatility, and exchange overloads. This morning the CEO of Binance, Changpeng Zhao, aka CZ, told Bloomberg about the price of Bitcoin and the novelties of the exchange. Speaking about BTC, CZ said that it is behaving almost like a stablecoin, namely that it is indeed very stable.. Aside from that, which is a fact visible to everyone, CZ talked about new developments concerning the Binance trading platform. Read More: Get Set for Bitcoin ‘Halving’! Here’s What That Means. Binance’s new-users sign ups are higher than they were in February “by far,” Zhao said. “It’s possible users from ... Bitcoin’s volatility has been eerily low over recent weeks. As Bitcoinist has covered extensively, indicators tracking the metric have plunged to multi-month lows as BTC has been caught between $8,500 and $10,000. On July 3rd, a trader shared the image below, showing Bitcoin’s historical volatility index (one-day, BitMEX) over the past two years. First Mover: Binance CEO Sees Future in DeFi While Bitcoin Volatility Turns Minuscule It might be part of every job in crypto to anticipate and react to fast-moving developments that seemingly ... Volatility in Bitcoin is virtually guaranteed to reach new lows. And if you look at 180-day volatility, the low in 180-day volatility was around 40% and that was from October of 2015. That marked the bottom in the market and then it took off. But with more and more vehicles coming in the space, with Bakkt and futures and all of the ways for people to get involved in Bitcoin, that volatility is ... Bloomberg expects bitcoin to gain amid the circumstances, helped on by mainstream adoption. Per the report, despite BTC’s annualized volatility that’s averaged about 5x that of the S&P 500 in ...
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