Market report

HAPPY NEW YEAR OF THE PLATYPUSES!

London Block Exchange

3rd January 2017

The media is catching up with exotic cryptoassets — what to do about it?

HAPPY NEW YEAR OF THE PLATYPUSES!

The media is catching up with exotic cryptoassets — what to do about it?

2018 is here and if the last twelve months weren’t that wild, as we discussed in our special report ‘The Year in Review’, the latest cryptoasset developments could truly rock the boat with the effects from the creation of this new asset class.

When the platypus was first discovered, laymen and experts thought it was a hoax, made of “several animals sewn together”. Two decades after broad acceptance, people still had trouble classifying it. Why? It represented a new species that didn’t fit with any others.

Likewise, Bitcoin and the cryptoassets that were born from it represent a new category, solely because they don’t fit the existing investment frameworks. It’s impossible to say what ‘The Year Ahead’ truly has in reserve for us, but we know it’ll be wild — big money now trusts crypto.

Last year, retail investors followed early adopters. Despite several new crypto hedge funds popping up, it was regular traders that were pushing the bubble — from high-net worth professionals to single mothers and even South Korean students!

In 2018, institutional investors will push the tide to new highs. While newcomers are usually attracted to cryptoassets that seem cheap, institutions think differently because they can buy leading coins (i.e. bitcoin) without moving the market.

Now the game-changer will be what new players deem good investments. Media outlets are taking a shot at whatever cryptoasset makes a 2x gain the previous day, helping to fuel the unhealthy and dangerous FOMO culture that has been driving this market.

But it will be fresh research from institutional investors, focused on long-term valuations of cryptoassets, that will create the winners that become the 100x for 2018. It’s some 26 pages long, with a summary on page 22 — and a bullish BTC forecast!

So, keep your scepticism, wear your critical thinking hat and do your own research!

WHAT YEAR IS IT?!

So much has happened since December 22nd!

On the day of the last daily report the price of Ripple’s XRP reached £0.74 (1$). It’s now at an average of £1.95 ($2.65) and few people seem to understand why. We talked about the supply lock-up, which prompted the run, and the Coinbase rumours.

But is it enough to justify this exuberance? What happened to the markets after the scary bitcoin dip (or shall we say healthy correction?) of the 22nd of December, where BTC reached a low of almost $10,700 on some exchanges?

The most notable event was the gain that alternative cryptoassets had once again. We had covered this trend (bitcoin down or sideways, other cryptoassets up) before, saying it was getting weaker — but now it seems the relationship could be back on track.

Over the past week practically all alternative cryptoassets broke new records, with Ripple trying to overtake Ethereum’s second place in market cap ranking. Here’s a good overview of the top performing cryptoassets of 2017.

It’s possible that the alt party could be over sooner than expected. As we mentioned above, institutional investors have been gaining trust in the market, influencing the decisions of the average trader. First there were hedge funds, then futures launched.

Now it’s about famous investors. Yesterday it was reported that Peter Thiel’s Founders Fund had invested around £15 million ($20 million) in bitcoin since mid-2017. Bitcoin, which had been trading sideways for two weeks, broke upwards pushing through resistance.

The price of a BTC is now again trading at around £11,250 ($15,300) and confidence is building for another bull run. Some analysts are saying the recent dip was a bear trap and that we are now headed back to break the previous all-time highs next month!

WHAT TO LOOK OUT FOR TODAY

To prepare for tomorrow!

Do not celebrate new year by advertising your portfolio. 2018 is poised to be a dangerous year for famous people in the industry, as evidenced by this kidnapping.

Do you own a business in the UK? You can now pay for your commercial waste recycling with bitcoin, ether and litecoin! “Old-fashioned money still accepted”.

Cardano (ADA) was one of the highest performing tokens of the past few weeks and the team is updating their roadmap in just over a day. Check their countdown and follow the charts!

ARTICLES OF THE DAY

An insight a day keeps the losses away

Reflections on the Cryptokitties craze by one of its founders, and how the trend will bring cryptoasset applications closer to consumers.

72 crypto thesis for 2018 by one of the founders of Coindesk, a major publication in the industry. (P.S. He hates Ripple!)

We have new crypto billionaires on the block — Ripple’s founders join the club with around 25% of all XRP’s holdings. Will they sell?

  • FOMO
  • Ripple
  • Ethereum
  • Bear Trap
  • Cryptokitties
  • Billionaires