Market report


London Block Exchange

2nd May 2018

How many crypto users are there to scare regulators?


How many crypto users are there to scare regulators?

Crypto markets continued their sideways movement, recovering yesterday's lost profits as the top 100 projects by market cap appreciated 5.6% on average. Only five main projects failed to rise, including Bitcoin Private, Bytecoin and Tron.

For now, it seems we'll keep trading within the last week's range as most speculators are waiting for bitcoin to break upwards of the current resistance - with a bullish reversal confirmed once there's a daily price close above £9.5k ($12.9k). By then, the talks of unsustainable parabolic growth will resume as mainstream media turn their heads again.

How do we conciliate the overvaluation narrative with the fact very few people own cryptoassets? David Ari Paul, CIO of BlockTower Capital, estimates that there are only 38 million crypto owners. Whilst aware that there's no good estimate, he states that proportionally, it's "really really tiny". Isn't that the definition of upside potential? Look at the s-curve of adoption!


The summer is coming, and we hope the silly season doesn't arrive early 

Yesterday, at the British Parliament, the Treasury Committee held a meeting on digital currencies. Ripple's XRP was one of the topics of the session, constituting of a heated debate regarding its use cases, relationship with Ripple Labs and open source nature.

A more general attack on blockchain technology however, dominated the hearing. Blockchain was dismissed as "pixie-dust" which can offer "little to nothing" in terms of "demonstrable benefits". It seems it's fashionable to downplay cryptoassets these days!

The hype cool down is good insofar as it prevents overvaluation, but it's important to be sensible about the precise shortcomings of the technology and the real potential. Note that next Monday the US' CFTC will start discussing how to regulate ether and other cryptoassets. It seems that thus far,positive sentiment is underway.


Filter the noise and stay ahead of the pack

▪ Volume is a popular trading indicator. Learn more about how to apply itand common fallacies such as how "decreasing volume does not indicate a trend is exhausting" here.

▪ Salt is a popular project which offers loans based on crypto-collateral. Learn more about the concept and the value of the SALT token in the latest BraveNewCoin analysis. Additionally, check this overview of Ripple's XRP, which has recovered 70% since mid-April.

▪ Inflation is a popular target of criticism from crypto libertarians. See some examples of how hyperinflation destroyed savings over the last century - courtesy of Nick Szabo.


An insight a day could give you more profits to play

▪ How secure is blockchain really, asks the MIT Technology Review - exploring creative ways to gain advantage with less than 50% of the mining power and 'eclipse attacks'.

▪ How hyped is blockchain really, asks the World Economic Forum - arguing that over enthusiasm harms the technology evangelists. Check this cool flowchart made up of 11 key questions to answer before claiming blockchain can be a solution to a business problem.

▪ How scalable is blockchain really, asks Vitalik Buterin, Ethereum's founder - revealing the new 'sharding' scaling solution is coming. Don't forget to read this great 'sharding' FAQ.

  • bitcoin private
  • bytecoin
  • tron
  • david ari paul
  • blocktower capital
  • ripple
  • xrp
  • CFTC
  • brave new coin
  • vitalik buterin
  • sharding
  • MIT Technology
  • World Economic Forum