Market report

THE WAY OF THE TURTLE

London Block Exchange

4th January 2017

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

THE WAY OF THE TURTLE

The media is shilling the meteoric rise of cryptoassets — what to do about it?

We didn’t plan to begin the first daily report of 2018 talking about platypuses and turtles, but it seems that animal analogies are quite fitting in the new year when understanding the latest moves in crypto mania!

Thanksgiving’s dining table conversations prompted 100,000 daily downloads for Coinbase, a cryptoassets exchange app. Many say it was responsible for kickstarting the bull run that took bitcoin’s price from £6,000 ($8,000) to circa £15,000 ($20,000).

But by Christmas it seems investors in the Western world got cold feet after being burned by the scary dips the 9 year old cryptoasset made on the week of December 18th to December 22nd. The burn was most effective against those who just joined this new world.

Remaining investors started playing with their profits and decided to gift themselves a new ‘alts’ season, a term coined to note (oh, the puns) a period in which alternative cryptoassets outperform bitcoin. Guess which specific group is leading the action?

Before that, let’s get back to the original point — the way of the turtle. We are sure you have been inundated with flashy headlines and tempting forecasts about the next booming cryptoasset, 100x ICO returns and the latest blockchain spinoffs.

You’ll also have seen the stories of investors being worried about missing out and chasing green candles (then losing 50% of their trade within 24 hours) or trying to call bottoms and ending up catching falling knives.

So, what should one do when it’s difficult to sleep, thinking about all those massive gains everyone is bragging about on social media? The way of the turtle is a famous investment book that advocates teaching traders in the same way that turtles are raised in Singapore.

Despite not being that good of a book, at least according to reviews, what this means for you is simple — watch out for your own biases, separate your emotions and mental states from your trades and follow the strategies you have laid out. The long run will favour you!

SOUTH KOREA IS MAKING RIPPLES

Did Ripple just overtake Bitcoin as the most valued crypto project?

After being responsible for last year’s ether-driven alt season, it seems the ‘paradoxical world of the Korean Christmas’ is influencing all of us.

Even though ether is currently trading at an average price of £700 ($950), the slower moves of the token behind Ethereum, the world’s largest decentralized computing platform, were not enough for the crypto-curious South Korean investors.

Amid official announcements that all cryptoasset exchanges would be regulated from January 20th onward, forbidding anonymous trading, investors started speculating with lower priced cryptoassets that potentially appeared more profitable.

Ripple became the chosen project. The settlement protocol token XRP, that had lost 93% of its bitcoin value since May, was always an appealing project for investors due to its well-funded team, conferences and partnerships.

We reported on the 13th December that XRP had broken its long downtrend against bitcoin’s price and then went parabolic. It was trading within £0.15 ($0.2$) to £0.22 ($0.3) for months and in one day surged 100% to £0.43 ($0.58).

At the moment only rumours of it being listed on Coinbase in 2018 can explain the growth, but quickly it became clear something more fundamental was happening — the lock-up in escrow of half of XRP’s 100 billion token supply.

Like in 2016, when XRP first surged from less than one cent, these escrow rules improved trust in Ripple’s project. The blockchain world is all about trust. Now South Korea accounts for more than 50% of all XRP trading and the fever is spreading.

However, what do we make of the well-argued opposing view that its tokens are useless, as “it’s hard to come up with any rational reason why XRP exists in the Ripple protocol, other than as a means for Ripple to make money. Lots of money”?

Furthermore, what do we think of the current ‘penny-stock casino’ environment that the cryptomarkets could be beginning to look like, as the demand for cryptocurrencies decouples from the demand of decentralised projects?

We don’t know, but we’ll keep thinking about it!

WHAT TO LOOK OUT FOR TODAY

To prepare for tomorrow!

EtherDelta, a famous decentralised exchange for Ethereum’s ERC-20 tokens, is running a crowdsale — but watch out! After its DDOS attack last month it was sold to an opaque group of investors and the lead developer left the project. Could it be a scam?

RaiBlocks (XRB) has surged 7000% in the past 30 days. There are rumours it is rebranding and a new pump might take place. Remember when Antshares rebranded into NEO back in August?

Rootstock (RSK), a smart contracts platform, announced an announcement yesterday, but nothing of substance has been said yet — something that is unfortunately common in the crypto space. Watch their twitter and also for possible dumps after whales sell the news!

ARTICLES OF THE DAY

An insight a day keeps the losses away

Yes, the Bank of England is considering launching its own cryptocurrency! Israel too!

Yes, the Bitcoin Sign Guy was considered the most influential ‘block-person’ in 2017!

Yes, like in 2016, China is preparing to rock the beginning of the year, potentially announcing limitations to the electricity that can be used by cryptoassets’ mining efforts!

  • bull run
  • blockchain
  • Ripple
  • ERC20
  • Bitcoin
  • NEO