Weekly Blockchain Industry Report-17th Issue: Bitcoin ETF

(August 4th –August 10th, 2018)

This week, the crypto market continued the bear trend. Major cryptocurrencies suffered price delince more than 10%. Among which, XRP got hammered and experienced greates loss of 26.2%. Apart from emotional factors, the major reason for this hit is the news that SEC rejected the application of Bitcoin ETF. We’ll dive deeper into this issue in the report.

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Market Overview

This week, the daily average global cryptocurrency’s market capitalization was $249.016 billion, and the daily average transaction volume was $12.67 billion. The daily average market cap declined by 12.83% and the daily average transaction volume declined by 12.14%. Also, the daily average market cap of TOP5 cryptocurrencies declined 13.13%, among which, XRP experienced greatest loss of 26.2%.

Average market cap of TOP5 cryptocurrencies declined 13.13%, among which, XRP experienced greatest loss of 26.2%.

Among the top 10 cryptocurrency gainers this week, most of the projects were in the vertical application field. Vikky, an advertising and marketing project, experienced the greatest increase in price by 368.05%.

Rank Project Token Field Introduction Volume

(24h)

Current Price Change/7d
1 VikkyToken VIKKY Marketing Vikky is a platform that offers the possibility to earn altcoins by watching videos to complete various tasks. $103,788 $0.000199 368.05%
2 Bankcoin B@ Dev tools BANKCOIN.global has developed e-commerce middleware for developers based on the blockchain. $143,970 $0.019285 323.50%
3 SRCOIN SRCOIN Health The SRCOIN Massage Chair is capable of measuring pulse rate and oxygen saturation, collecting health data and storing it in a dynamic blockchain database. $2,128,621 $0.003134 279.11%
4 Luna Stars LSTR Communication Luna provides an online dating platform that addresses attention through innovative incentives and machine learning algorithms. $1,291,126 $0.001399 165.25%
5 Parkgene GENE Transportation PARKGENE offers a blockchain-based, globally supported point-to-point parking service. $194,471 $0.002692 139.33%
6 Global Currency Reserve GCR Currency GCRCoin is a new distributed cryptocurrency, allowing anyone to use cryptocurrency in a simple way. $248,253 $0.139444 136.84%
7 ATC Coin ATCC Payment ATC is using smart contract technology to create a decentralized payment solution on Multichain. $300,658 $0.026991 126.26%
8 Tourist Token TOTO Tourism Travelers can get TOTO tokens by creating content, taking photos, commenting, evaluating products, restaurants, and food, and posting on the globaltourist website. $318,946 $0.000097 115.01%
9 Ethorse HORSE Gamble ETHORSE is a smart contract-based Dapp that can be used to bet on cryptocurrency prices. $105,480 $0.028930 83.47%
10 LoyalCoin LYL Retail LoyalCoin is a digital asset for customer loyalty to replace and enhance the current traditional rewards system. $439,560 $0.006914 83.43%

 

Analysis of Top 200 Market Cap Projects

Until 12:00 p.m. of the releasing date, the market capitalization of the top 200 projects decreased by 13.69% compared with last week. Based on our classification of 4 categories: cryptocurrency and payment, basic chain and protocol, vertical chain and protocol, and vertical industrial application, the projects of the vertical chain and protocol sector decreased the most.

Through further classification of the vertical chain and protocol and the vertical industrial application sectors, it was found that the past week’s dev tool projects suffered greatest loss of 39.33%.

Analysis of Newly Listed Projects

According to latest announcements from more than 30 exchanges including OKEx, Binance, Huobi, Bitfinex, Bithumb, ZB.com, Upbit, HitBTC, Bittrex, Poloniex, there are 7 newly listed cryptocurrencies. Among them, 2 are IoT projects, others are in the categories of basic chain and protocol, security, asset management, data service and retail. What’s more, these newly listed cryptocurrencies concentrated on Bit-Z exchange. Only BOX increased in price in these newly listed projects, its maximum percentage increase was 66.67% in the past week.

Newly Listed Pairs Field Exchange First Time Listed? Open Current Change Volume

(24)

ICO Date
IOTA / KRW IoT Upbit No 800 KRW 708 KRW -11.50% 1227071694 KRW Aug 4th
GSE/ETH GSE/BTC IoT Bit-Z No 0.0000295 ETH

0.000002 BTC

0.0000225 ETH

0.00000134 ETH

-23.73%

-33%

1583 ETH

4.91 BTC

Aug 7th
DX/ETH Basic chain & protocol Coinsuper No 0.0000042 ETH 0.00000235 ETH -44.05% 9613864 DX Aug 8th
BOX/ETH

BOX/BTC

Security Bit-Z No 0.0012 ETH

0.00006850 BTC

0.00137 ETH

0.00007009 BTC

14.17%

2.32%

1607 ETH

15.73 BTC

Aug 8th
BUT/TC Asset Management OEX No Aug 8th
DX/USDT

DX/ETH

Data Service Gate.io No 0.002 USDT

0.00000473 ETH

0.0007 USDT

0.00000191 ETH

-65%

-59.62%

1.35 million USDT

738 ETH

Aug 8th
BDSG/ETH Retail Bit-Z Yes 0.005551 ETH 0.0002797 ETH -94.96% 540 ETH Aug 10th

 

Analysis of Closed Public Offering Projects

There have been 41 closed public-offering projects this past week, with the soft cap totaling nearly 395 million USD. Among these projects, projects of the exchange token received most funding, exceeding over 200 million USD.

Table of closed public offering projects(8.4-8.10)

Project Token Field ICO Ratio SoftCap
Intuition coin INIT Asset Management 50,000 USD
Siglo TBD Communication 36%
RIK COIN RIK Health 50% 2,000,000,000JPY
Bittellux BTX Exchange Token 26.4% 200 million USD
Sleecoin SLEE Real Estate 50% 10,000 ETH
MintFlint MTF Human Resources 50%
Liquid8 LQ8 Finance-Lending 50% 3,000,000 USD
Ethereum Wildfire Project EWPS Company Service 4,000 ETH
bitXbit BXB Asset Management 87%
Project Token Field ICO Ratio SoftCap
Akoin AKC Payment 27% 300,000 USD
Playrs PLAYR Sport 55% 2,500,000 USD
Catholic Coin CTC Community Token 78% 1600 ETH
PixelAlpha PXA Finance 40% 30,000,000 USD
Shanghai Cooperation Organisation Coin SCO Finance 81% 10,000,000 USD
Lunch Money LMY Retail 64% 1500 ETH
EventJoin SAB Company Service 10,000 USD
Blockchain of Things BCOT IoT 7.5%
URAllowance URA Education 40% 100,000 USD
TWO IoT TWO IoT 55% 5,000,000 USD
Stoxum STM Platform Token 100% 2,000,000 USD
REOS REOS Content 50% 5000 ETH
Pacmancoin PMC Game 12% 1,000,000 USD
Metabase META Company Service 30% 624,000 USD
Ethbay EBY D-exchange 80% 3000 ETH
Sentigraph.io EMOT Gamble 60% 5,000,000 USD
Path.Network PATH Data Service 100% 10,000,000 USD
Leonardian LEON Content Copyright 50% 3,000,000 USD
Senno SENNO Data Service 40% 2,000,000 USD
Project Token Field ICO Ratio SoftCap
Plentix REFER Retail 70% 3,000,000 USD
Datareum DTN Data Service 60% 500,000 USD
FOAM FOAM Data Service 30%
London Football Exchange LFE Sport 60% 5,000,000 USD
StoneToken STTN Asset Management 2,000,000 USD
HOSTCOIN HOSTC Asset Management 55%
buglab BGL Security 40% 6,000,000 USD
Zodiaq ZOD Payment 80% 1,500,000 USD
ELPIS ELP Asset Management 78% 1,000,000 USD
Streamity STM Asset Management 70% 500000 USD
Crypto Angel ANGEL AI 83.33% 20,000,000 USD
BIT MONEY BIT Finance-Lending 85% 80,000 USD

 

Important News on Global Governmental Policies this Past Week

Below is a list of some of the most important global news on governmental policies on blockchain and cryptocurrency. The picture below is for reference to how strict/loose some countries are with their regulations.

The US: According to an official document issued by the U.S. Securities and Exchange Commission (SEC) on August 7, it has postponed its decision to list and trade its bitcoin Exchange-Traded Funds (ETF) until September 30.

The United Kingdom: Under the proposed mandate of the Financial Conduct Authority (FCA), 11 financial regulators around the world have partnered up to form the Global Financial Innovation Network (GFIN) Alliance to help further develop financial technologies such as blockchain.

Ukraine: Ukraine may levy a 5% tax on the proceeds of the sale of tokens minus the cost of buying or mining, and individuals must also pay a tax of 1.5%. The taxation plan will start from 2019 and will be implemented until 2025 (tentative).

Italy: Italian Deputy Prime Minister Luigi Di Maio said that the Italian government will adopt ultra-wideband technology in the future, so that all available resources are invested in the 5G network, blockchain, artificial intelligence, and quantum computation.

Turkey: Turkey established the country’s first university-level blockchain center at Bahcesehir University. BlockchainIST will be “the most important R&D and innovation center in Turkey, where blockchain technology is used in scientific research and publications”.

Thailand: The Bank of Thailand has allowed local banks to set up subsidiaries to provide cryptocurrency brokerage services, operate cryptocurrency-related businesses, and invest in cryptocurrencies.

Keeping Up with the Blockchain Giants

August 4th

Bitmain officially completed a round of pre-IPO financing. This round of investors includes Tencent, SoftBank and China International Capital Corporation Limited (CICC). This financing is US$1 billion; its pre-investment valuation is US$14 billion, and the post-investment valuation is US$15 billion.

August 5th

VeChain will partner with NTT, Japan’s largest mobile telecommunications provider, to develop the blockchain project VeChainThor, which will enhance and extend the traceability of existing customer services, supply chain management and smartphone application services.

August 6th

Bitmain announced that it has set up a new blockchain data center in Milam County, Texas, and it will invest more than US$500 million in the region within seven years. It said that “Milan County’s blockchain data center and encrypted digital currency mining facilities are key components of Bitmain’s strategic investment and expansion plans in North America.”

August 7th

According to Bloomberg News, Goldman Sachs is considering plans to offer cryptocurrency custodian services. This means that it may hold digital currency assets on behalf of these funds, reducing the risk of customers seeking to hedge their investment losses.

August 8th

A subsidiary of China Zhong’an Insurance said it has placed data on 760,000 diamonds in the blockchain, claiming that this project aims to achieve a higher level of traceability in the luxury industry; Suning’s blockchain product “Star Home” is officially online.

August 9th

The custody services giant State Street Bank and Trust Company is considering using the blockchain to implement its P2P securities lending.

August 10th

GSR Capital will hold an 18% stake in the US-based e-Commerce giant Overstock’s tZero for US$270 million, and it will also participate in its ICO with US$30 million. If the transaction is completed, tZero will be valued at $1.5 billion.

Hot topic of this week: Bitcoin ETF

On August 7, the U.S. Securities and Exchange Commission (SEC) postponed its decision on allowing the Bitcoin-backed ETF VanEck SolidX Bitcoin Trust to go public on August 10th, until September 30. Bitcoin started falling again on the news.

What is the theoretical basis of Bitcoin as the ETF target?

An ETF refers to an open-end fund with variable shares that can be traded on an exchange. In general, ETF index funds mainly include four categories: stock, currency, bond, and commodity ETFs. Currently, the SEC defines BTC and ETH as commodities, therefore, BTC and ETH can be used as the target of the ETF, positioned as a commodity ETF.

What is VanEck SolidX Bitcoin Trust?

The VanEck SolidX Bitcoin Trust is a Bitcoin ETF proposed by the Chicago Board Options Exchange (Cboe), and sponsored by blockchain startup SolidX and investment company VanEck. The fund, called VanEck SolidX Bitcoin Trust, had previously applied for the Bitcoin ETF twice, both times ending in failure. June 2018 marks its third application.

Why is VanEck SolidX Bitcoin Trust so highly anticipated?

Based on the operation model, commodity ETFs can be divided into two categories: those with and without physical support. VanEck SolidX Bitcoin Trust is the only one of the current nine bitcoin ETF application proposals supported by bitcoin spots (the others are supported by bitcoin futures), which has a higher probability of becoming a physical commodity ETF target, so it is generally considered the ETF most likely to be approved.

What is the resistance against listing the Bitcoin ETF?

In January 2018, the SEC issued an open letter stating that Bitcoin’s extreme volatility and potentially low liquidity were not suitable for ETF trading patterns. Moreover, the SEC believes that there is currently no data or factual evidence that arbitrage can effectively prevent Bitcoin prices from being manipulated. Even if market participants diversify their funds for inter-exchange spread, by pooling funds and transactions, they can manipulate transactions within a particular exchange. Moreover, some market participants with monopoly positions may also use their position to manipulate the market. Furthermore, if the SEC changes the commodity status of BTC and ETH later, it will be even more difficult for them to become ETF targets.

What does the successful listing of the Bitcoin ETF mean?

The way the gold ETF operates is that large gold producers first consign the physical gold to the fund. Based on this, and the fund companies issues its shares publicly on the exchange, they are sold to various investors, and banks and brokers are responsible for its underwriting. The operation model of the Bitcoin ETF is similar. If it is successfully listed, it will further lower the investment threshold, expand the scope of investors, bring investors who are not familiar with the digital currency field into this market, and bring many of funds, banks and institutional investors to Bitcoin.

Appendix: Upcoming Crowdfunding Projects(8.11–8.17)

Project Token Start Date End Date Field Total Number ICO Ratio Hard Cap
Safemining SM2 2018/8/14 2018/9/14 Asset Management 1,000,000 USD
RENC RENC 2018/8/16 2018/10/15 Transportation 200,000,000 51% 40,000 ETH
Digital Degree DD 2018/8/15 2018/8/29 Education 80,000,000 70% 80,000,000 USD
Laval LAL 2018/8/15 2018/9/15 Asset Management 20,000,000 LAL 25% 3,500,000 USD
Electrominer ELM 2018/8/15 2018/10/13 Asset Management 1,000,000,000 70% 50,000,000 USD
Sarf XRF 2018/8/15 2018/9/5 Finance 2,000,000,000 37.5% 10,600,000 USD
Block Loan BLC 2018/8/15 2018/10/10 Finance 500,000,000 66% 47,000,000 USD
FighterCoin FGC 2018/8/15 2018/9/30 Community Token 1,000,000,000 15,000,000 USD
BlocVehicle VCL 2018/8/15 2018/9/14 Transportation 1,000,000,000 40% 49,333 ETH
NZToken NZT 2018/8/13 2018/8/27 E-commerce 500,000,000 50% 37,500,000

USD

EON Protocol EOT 2018/8/15 2018/9/15 Game 2,100,000,000 30% 30,000 ETH
Citowise CTW 2018/8/15 2018/9/15 Wallet 350,000,000 70% 90,000 ETH
SportsFix SFT 2018/8/15 2018/10/15 Sport 800,000,000 55% 37,200,000 USD
Project Token Start Date End Date Field Total Number ICO Ratio Hard Cap
Gaus GAUS 2018/8/15 2018/8/25 E-commerce 70% 17,000,000 USD
Dominium DOM 2018/8/15 2018/8/30 Asset Management 1,400,000,000 70% 92,500,000 EUR
BUFF BUFF 2018/8/15 2018/9/15 Game 300,000,000 20% 30,000,000 USD
CrypStock ICS 2018/8/15 2018/9/20 Asset Management 500,000,000 55% 59,000,000 USD
Cybercoinium CBR 2018/8/15 2018/8/30 Dev Tool 180,000,000 65% 12,500,000 USD
Parkres PARK 2018/8/15 2018/9/15 Retail 179,000,000 47.5% 48,000,000 USD
Chozun CZN 2018/8/15 2018/9/15 Tourism 100,000,000 50%
AIRSTAYZ™ STAY 2018/8/11 2018/8/25 Tourism 155,000,000 60% 24,000,000 USD
Fair Ninja YSH 2018/8/15 2018/8/30 Marketing 500,000,000 60% 22,400,000 USD
DNAtix DNAtix 2018/8/15 2018/11/14 Health 150,000,000 53% 30,000,000 USD
Vanig VANIG 2018/8/15 2018/8/22 E-commerce 218,000,000 65% 20,000,000 USD
B21 B21 2018/8/15 2018/9/14 Finance 500,000,000 50% 29,000,000 USD
Rebons RBN 2018/8/15 2018/9/15 Game 30,000,000 50.6% 2 000 000 RBN

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