Market report

DON'T FALL FOR PUMP AND DUMPS

London Block Exchange

13th February 2017

Too many people keep making the same mistakes

DON'T FALL FOR PUMP AND DUMPS

Too many people keep making the same mistakes.

Monday has been quite tedious, with the top 100 cryptoassets appreciating by only 1% on average barely enough to ensure that the overall market remains above the symbolic and relatively bullish £290 billion ($400) market cap mark.

In times like this, we believe it's better to learn than to trade. Few projects are on the move up and most pumps would have required luck or inside information to have jumped in at a profitable time just look at U.Cash's unexpected 25x growth over the weekend!

After being listed on a small exchange with low liquidity in mid-January, the Bitconnect-like project rose from £0.006 ($0.008) to above £0.15 ($0.21) last Saturday, only to fall 70% over the first few hours of Monday and then it pumped 40% again!

U.Cash made the 'world's first Initial Bounty Offering' and distributed 8.6 billion tokens, out of a maximum supply of 21 billion. With vague promises for interesting concepts, such as 'banking the unbanked', projects like this are poised to be labelled as a scam.

This is an example as to why it's dangerous to only rely on market cap as a proxy for fundamental analysis of cryptoassets, and how it's important to always watch out for projects that mysteriously rise in CoinMarketCap's rankings. Don't give them your money without doing your research!

STALE TIMES ARE FUNDAMENTAL TIMES

We can't move the markets, so let's focus on what moves them

Last Wednesday we talked about NVT's Signal Ratio, a derivative of the famous NVT Ratio introduced by the token analyst Willy Woo. After another researcher published his take on the popular 'crypto PE ratio', Willy saw its merits and started promoting it.

On Sunday he published an analysis of what was claimed last week; namely that the NVT Signal, a network indicator, was better at calling both global and local tops and bottoms than trading indicators which are only based on price action!

This is good news for those who otherwise shun technical analysis usually for good reasons as they can now add a new tool to their crypto data box! Do remember, however, that JP Morgan have acknowledged that technical signals can be useful!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

The MyEtherWallet vs. MyCrypto plot thickens! Here are the latest court documents released after the recent split and here's an overview of the situation in case you missed the panic.

The cryptojacking trend gets worse! After a notorious file sharing website started using its users' computer power to mine cryptocurrency, Wired reports that the situation has developed to the point where [critical infrastructure is being targeted]https://www.wired.com/story/cryptojacking-critical-infrastructure/)!

The Arizona Senate passed a bill to allow residents to pay income tax with bitcoin and other tokens! More bullish news for the global adoption of cryptoassets!

WHAT TO READ TODAY

An insight a day could give you more profits to play

A new cryptoeconomics weekly series has been launched! If you like 'first principles thinking', here's the first issue about the social order of cryptoeconomic theory!

A new edition of the exclusive Satoshi Roundtable, a private crypto retreat, just took place. Here are the two best overviews from Caitlin Long and Jameson Lopp.

A new take on the Tether situation was published and it explains the problem with thinking Tether's low market cap can't influence cryptoasset's prices!

  • Ucash
  • Bitconnect
  • Bounty
  • MyEtherWallet
  • MyCrypto
  • Tether