Ethereum EOS and Bitcoin Cash - The CryptoCorner 4 24 18
Hey CryptoCorner fans, we have a lot to get into, so let’s have at it shall we. We are happy to report the cryptocurrency space continues to rocket higher off its lows. A few letters back we spoke of the large base forming in Ethereum and how long-term players should be willing and able buyers at those cheap levels between $275 and $375, well Ethereum hit $350 and has rallied up to $711 a 77% rise off its lows. We would like to point out that the $711 level is the 61.8% Fib retracement, and long-time readers know our dedication to the Fibs:
We expect the $495 level to offer better support on the way down and expect the $700 area to offer keen resistance for now, but the low seems to be in for now and a new trading range emerging.
Moving along and to what some have called in the past the “Ethereum Killer” none other than EOS, which is a platform for building DApps or Decentralized applications. Most main stream traditional app builders are backend code running on centralized servers, where a DApp has backend code running on a decentralized peer-to-peer network.[1] We wrote about EOS last year and have made it our focus to add it to our CC Index, which we are proud to announce its addition as of this week.
If you want to read up more on EOS and see if it is right for your crypto portfolio you can find some resources, Here ,Hereand HereWe feel EOS has huge potential, but its still trying to find a base. It’s super volatile which is expected as a crypto, but just for some context, after hitting a low just under $4 in mid-March, it hit $16 this week! We would like to see continued consolidation above the $10 mark and accumulate positions just under that area, here’s the chart:
Continuing with the positive moves this week, Bitcoin Cashhad a huge week up over 51% and was the obvious stand out! Word on the street for its meteoric rise has to do with miners burning BCH coins. Most of our long-time readers know our disdain for Bitcoin Cash as the annoying little Bitcoin brother, but we aren’t stupid and recognize its still a viable crypto. Roger Ver the creator is often found ranting on about core Bitcoin and its inferiority to Bitcoin Cash, we will let our readers decide. So, this week we find the rise correlated to the announcement by Bitmain’s Antpool that it was burning 12% of the coins it earned while mining.[2]
It is our belief that this is a very bold and impressive move, well-articulated and one that makes perfect economic sense. We associate it with buying one’s stock back, which obviously reduces supply thus given a static demand should cause prices to rise. Well in our opinion it seems to be working and Bitmain is being well rewarded.
Speaking of Bitcoin, it had a modest week up 8% but we have to say, the run off the lows has been impressive as this chart shows, Bitcoin is up some 46%! This move shouldn’t come as a surprise to long time core crypto and Bitcoin advocates:
Bitcoin was a rare model of modesty this week only up 8% as the coins we now track on average rose around 28%! That marks two solid weekly gains in a row, enough to beat the leveraged sellers into submission, for now. We would rather see some steady consolidation set in here as opposed to 20% average moves. This is still a new and budding asset class and investors should realize the actual volatility is much larger than normal and your investing style and stamina must accommodate for such activity. Anyway, here are the settlements for the trading week ending April 20th 2018:
Please notice that we are now tracking 10 Cryptocurrencies in all, with the newest addition EOS at the bottom which settled at $11.08 up $2.13 and 23.8% on the week.
We are glad to include them in our CryptoCorner Index and we have distributed their weighting in a proprietary fashion into the index. The CryptoCorner Index settled at $3304.42 +$294.96 or 9.8% for the week. The index is doing its job as intended, which the goal is to smooth out the volatile individual currency moves by allocating across a multitude of currencies:
Moving to other news in the space, BNC had a great article on Amazon entering the new and exciting space known as (Baas) or Blockchain as a service. We know full well the potential of Amazon and their endless endeavor to take over anything and everything. We saw the writing on the wall as they look to become the one stop human shop for everything, hell one day even the AI will only have Amazon to buy from, yikes let’s not think that far ahead! Anyway without reading the whole article which you can find Here, Amazon is getting into Baas with blockchain templates for Ethereum and Hyperledger Fabric for their AW Services. We continue to inform our readers of the gargantuan ecosystem being built out and as these big dogs enter the fray and toss their billions into becoming the biggest and baddest, you can rest assure that Blockchain is indeed the future! Ok so what other news is out there:
CCN reports that Ethereum and Ripple are “non-compliant securities,” Gary Gensler a former CFTC head said they are trading illegally. You know where good ole Gary is now? He is special adviser to MIT’s Media Lab, Public servant, Private promoter rinse, recycle, repeat-yadda-yadda-yadda
NY AG Schneiderman sent 13 trading platforms inquiries as to their policing policy on restricting trading from prohibited jurisdictions
TeamBlind did a survey polling 2602 people in the crypto space asking them if they planned on reporting their earnings for crypto, 46% said “NO” – We don’t think that is a very smart move by those 46%, if its one thing we can tell you about the US government, is that when they want something, they usually get it, so we highly recommend doing the right thing! It’s in your best interest
Stablecoin Project Basis raised $133 million VC money, we talked about this project in last weeks letter and we look forward to seeing it as it develops, we are big fans of Stan D so we know he will get things done, link to the Cointelegraph article is Here
Also, out this week was a gigantic Litecointransaction which saw $99 million worth of LTC being transferred. The transaction cost was 40 cents and it took 2.5 minutes to settle. The importance of this demonstrates the viability of the network in terms of efficiency and integrity and highlights the future of monetary transactions potential. Decentralized, no banks involved, just a straight up P2P transfer from one owner to another. This is the epitome of seamless, trust-less and decentralization transacting. This is the future and the potential savings is obvious.
Finally, Caitlin Long of Caitlin-long.com pointed out some great facts this week and if you are in the crypto space and you don’t follow her, you are truly missing out! Anyway, here is just some of what she highlighted:
Q1 2018 ICO volume was $6.3 billion -In Q1 2018 alone, despite regulatory uncertainty, ICO volume topped volume for full-year 2017.
$1.7 billion was raised for a single company’s ICO in March. This highlights an important question -If companies can raise this much money in the ICO market, why would they ever bother with the hassle of an IPO??
DRW’s crypto unit disclosed in November 2017 it had traded $20 billion of crypto assets during the prior year. Soros has since joined the party, and many others have also done so quietly.
Goldman Sachs hired a cryptocurrency trader this week -Too good to pass up right?
OK, that’s it we leave you with a picture of the top 5 Bitcoin wallets. All the wallets were virtually unchanged from the week prior, except for the largest BTC wallet which is now up to 196725 BTCpushing that 200k threshold. The 3D2 wallet sports a lofty $1.77 billion dollar value.
Thank you for reading we hope you enjoy the rest of the week and please feel free to send this to your friends and cohorts. Cheers!
DISCLAIMER: For Educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures nor an endorsement for the purchase and sale of ICOs or Cryptocurrency and should not be construed as such. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Mike Agne of Agne Asset Management LLC (AAM) and owner of www.econemotions.com and The CryptoCorner Newsletter, that you will profit or that losses can or will be limited in any manner whatsoever. The CryptoCorner logo and name is the sole right and property of (AAM). Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, (AAM) makes no warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.DO NOT COPY OR FORWARD INTELLECTUAL PROPERTY WITHOUT PRIOR WRITTEN CONSENT AND OR APPROVAL
[1]https://ethereum.stackexchange.com/questions/383/what-is-a-dapp
[2]https://bravenewcoin.com/news/bitcoin-cash-and-coin-burning-what-does-it-mean/?utm_source=BNC+Newsletter&utm_campaign=0bf28b483f-Crypto+Asset+Review%2C+21st+Mar+2018&utm_medium=email&utm_term=0_83439a8472-0bf28b483f-245250785