Market report

Hefty Decision Making

London Block Exchange

8th August 2018

Those who have been reading our newsletter were not surprised yesterday

Market Report: 8th August 2018 — Subscribe here

CRYPTO NOTE

The daily view from our desk

We never thought the day would come where KFC and Kellogg's would board the ban(d)-wagon. After last night's price swings and hot dips, we were hoping for a good ol' KFC family bucket! That aside, Slack raised $400MSnapchat receives $250M from Saudi prince, leaving Elon Musk at Wonder Bar, contemplating on taking Tesla private (Cobain in full bant-tastic support 🧙‍♂). Question is, Elon when SpaceX journey to moon?

HEFTY DECISION MAKING

Those who have been reading our newsletter were not surprised yesterday

We're short on Disney's stock, as its theme parks clearly lost the ability to bring a unique mix of nostalgia and conflicting childhood emotions to their visitors. At least compared to the cryptic 'Bitland', that is. Over the past 24 hours, bitcoin is down 6.9% and the top 100 projects by market cap have lost 8.7% on average. Drum roll - as always, CNBC knew it all the way (or not)!

Yesterday the U.S. SEC released a PDF document, which confirmed that it was postponing its decision regarding the VanEck SolidX ETF - also known as the CBOE proposal - by 45 days. If you need a primer on what all these ETFs are, we recommend this article by Alex Krüger.

Curiously, the SEC's press release had identical wording as the one used to postpone the BATS ETF proposal on August 2016. Also, expectations on this recent deferment have been around since July 25th since the SEC has to review all the comments people make on its website. As always, people on CryptoTwitter started debating on whether the markets dropped due to this priced in non-event or if a dump was poised to happen regardless.

MESSY DANGEROUS UNDERTAKING

Those who tried to catch the bottom were surprised yesterday

The announcement was released on the SEC website and, this time, the first microblogging account (of the 984 we follow to keep you informed) that unleashed the news was CoinDesk's, at 8h45pm BST. The downwards staircase with regards to price on bitfinex took a nose dive shortly after.

The news picked-up some trading volume by 8h48pm BST, with price dropping 2.7% within 30 minutes. Bitcoin then broke the critical £5.25k ($6.8k) support, exactly at 22pm BST. This signifies that taking your time to make decisions whilst being aware of any catalysts is vital.

Several traders are claiming that someone was informed about the announcement earlier and decided to pile up shorts against ether 10 minutes prior. Perhaps a coincidence? Be weary of trying to catch falling knives until the dust settles and remember more downside is still possible. Oh, what a peaceful day it would have been if the SEC had decided to investigate Elon Musk's latest tweet for securities fraud.

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

▪ A US DEA blockchain analyst claims five years ago "criminal activity was behind about 90% of transactions in cryptocurrency". Now, speculation accounts for 90%.

▪ The UK FCA has announced the creation of "the Global Financial Innovation Network", a sandbox for regulators to consult on emerging technologies, including cryptoassets.

"The Great dApp Takeover" is an interesting possibility. As blockchains jostle for users, we'll likely see successful dApps facing hostile takeovers from competing projects

WHAT TO READ TODAY

An insight a day could give you more profits to play

▪ Coincidentally, our buddies from another popular newsletter are aligned with our 'crypto treasure hunt'. The latest article from TokenDaily's 'Token Tuesdays' series is about Nano.

▪ Johnny Antos is a former banker who writes about cryptoasset valuations and economics. Here's his paper on 'Applying Insights from Behavioural Economics to Bitcoin'.

▪ Tony Sheng's latest weekly 'critical thought' compares the cryptosphere in 2017 vs. 2018. Here's why we're facing "a red ocean for smart contract protocols" and ICOs.

FOUNDATIONAL TRIVIA

Because the building blocks of crypto needn’t be irrelevant

Hard forks are a tool developers and stakeholders use to chunk profits away from a cryptoasset project, including dApps these days, while the more pacific soft forks help developers to piece in consensual changes in the protocol. More in our 'College of Crypto'.

  • blockchain
  • cryptocobain
  • Nano
  • Bitcoin
  • SEC
  • ETF
  • Slack
  • Tesla