Market report

DO YOU HAVE SOME (EX)CHANGE?

London Block Exchange

16th January 2017

Prices are consolidating across the board — what’s happening?

DO YOU HAVE SOME (EX)CHANGE?

Prices are consolidating across the board — what’s happening?

Crypto markets are continuing their pullback as no one is left to carry on playing music at the alts party. Total crypto market cap decreased 7% over the past day, with a 14% decrease among the top 100 cryptoassets and a healthy 4% drop in bitcoin’s price.

Exchanges are struggling with their massive verifications backlogs, caused by the heavy work mandated by KYC regulations. Many report that they have been waiting for at least three weeks for verification by two major players — Kraken and Bitstamp).

So it’s difficult for new money to enter the space like it did between October and December. The illegal secondary market for ‘fully-verified’ exchange accounts is booming and a theory about collusion to stabilise the crypto markets is appearing.

Only Binance, a Hong Kong based exchange focused on alts, has been opening new accounts — or at least they have since the 10th January. They have been dubbed ‘the fastest profitable start-up unicorn’ in history(!), but they don’t accept fiat deposits.

As it’s difficult for money to flow in, many are resorting to over-the-counter services. You can ask more about LBX’s own OTC desk here, but outside the UK some investors are not as lucky. China has just started to crackdown on this alternative!

DO YOU HAVE ANY CHEAP ALTS?

ETH drops, XRP drops, BCH drops, LTC drops; NEO and GAS rise.

Now that we understand why overall prices are consolidating — which in the world of alternative cryptoassets, which are more volatile than bitcoin, means slowly going down — let’s take a look at what some of the most prominent projects are doing.

Ether failed to keep momentum and dropped 8% yesterday. It is already down 15% from its all-time high of £1,030 ($1,420), which was achieved on Saturday. Even Korea is not able to drive a large premium, trading only 20% to 30% higher than the rest of the world.

Why? It just sustained a solid two weeks bull run, having risen constantly since December 30th. It has now broken this trajectory and, while demand for decentralized computing is real, it’s clear that “cross-crypto speculation” has been playing a role in the surge.

Ripple’s XRP is confirming its Icarus status and is now trading at an average price of £1.15 ($1.6), despite promising announcements. Many people learned to look into market caps before thinking a low trading price means high-growth potential!

Litecoin and bitcoin cash are also failing to rise and have been trading sideways for almost a month. That’s fine in the scheme of things, however, as only 5 of the top 100 cryptoassets rose yesterday. Recap yesterday’s report to find out today’s top performers! Just don’t FOMO!

WHAT TO LOOK OUT FOR TODAY

To prepare for tomorrow!

Golem, self-described as an “Airbnb for cloud computing power” and one of the most popular ICOs of 2016, is having a workshop in London this afternoon!

The Crypto Finance Conference is starting tomorrow in St. Moritz. Discuss the future of the decentralized revolution while sliding down the slopes in style!

Keep following China’s crackdown on ‘exchange-like services’ as it could have a major impact on the development of this week’s bitcoin price.

ARTICLES OF THE DAY

An insight a day keeps the red candles away

A paper published on the Journal of Monetary Economics analysed how Mt. Gox manipulated bitcoin’s price after their hack to hide their losses!

Have you ever wondered how a pump and dump group works? Learn the basic mechanisms here to understand the scheme so you can steer clear from them!

The Guardian has quite a negative view on cryptocurrencies — we think their arguments are poor. Watch out for our rebuttal later this week!

  • KYC
  • NEO
  • GAS
  • LTC
  • XRP
  • BCH
  • Golem
  • OTC