(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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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%.
|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
|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
| 0.0000225 ETH
|DX/ETH||Basic chain & protocol||Coinsuper||No||0.0000042 ETH||0.00000235 ETH||-44.05%||9613864 DX||Aug 8th|
|BUT/TC||Asset Management||OEX||No||–||–||–||–||Aug 8th|
|Data Service||Gate.io||No||0.002 USDT
|1.35 million USDT
|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）
|Intuition coin||INIT||Asset Management||–||50,000 USD|
|Bittellux||BTX||Exchange Token||26.4%||200 million USD|
|Sleecoin||SLEE||Real Estate||50%||10,000 ETH|
|Ethereum Wildfire Project||EWPS||Company Service||–||4,000 ETH|
|Catholic Coin||CTC||Community Token||78%||1600 ETH|
|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%||–|
|TWO IoT||TWO||IoT||55%||5,000,000 USD|
|Stoxum||STM||Platform Token||100%||2,000,000 USD|
|Metabase||META||Company Service||30%||624,000 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|
|Datareum||DTN||Data Service||60%||500,000 USD|
|London Football Exchange||LFE||Sport||60%||5,000,000 USD|
|StoneToken||STTN||Asset Management||–||2,000,000 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
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.
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.
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.”
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.
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.
The custody services giant State Street Bank and Trust Company is considering using the blockchain to implement its P2P securities lending.
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|
|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|
|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|
|EON Protocol||EOT||2018/8/15||2018/9/15||Game||2,100,000,000||30%||30,000 ETH|
|Project||Token||Start Date||End Date||Field||Total Number||ICO Ratio||Hard Cap|
|Dominium||DOM||2018/8/15||2018/8/30||Asset Management||1,400,000,000||70%||92,500,000 EUR|
|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|
|Fair Ninja||YSH||2018/8/15||2018/8/30||Marketing||500,000,000||60%||22,400,000 USD|
|Rebons||RBN||2018/8/15||2018/9/15||Game||30,000,000||50.6%||2 000 000 RBN|
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