Premium Daily Crypto NewsletterSeptember 30, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Week In Review
Market Continues To Improve
The market had nearly a neutral week overall as we returned to 225 Billion.
The big takeaways this week were that the fears that caused us to drop were mostly unfounded, and the positive news that helped us recover were much more significant.
The most obvious catalyst of this is the recent news of the upcoming physical Bitcoin futures set to be launched by Intercontinental Exchange’s Bakkt cryptocurrency platform. They will take the form of physical BTC futures, aiming to create a “regulated ecosystem” for institutional investors, with the first contracts to be available in at least three fiat currencies, such as the U.S. Dollar, British Pound Sterling, and Euro.
These will be the first of their kind, as both the CME and CBOE futures are cash settled. This indicates that Bakkt has found a custodian that is both regulated and able to handle the high volumes they expect on their platform. It’s possible they are that custodian, but we won’t know until they release more details.
I covered some of my thoughts on Bakkt here:
This week continued to be dominated by big names rolling out plans.
In particular, two of the biggest names in the crypto space have made some big news. Coinbase introduced an application process to onboard new altcoins, they announced a new series of educational resources, and finally revealed a product that allows customers to buy a bundle of Coinbase’s listed assets.
Potential investors got a peek at Bitmain’s IPO prospectus this week, but the information contained within may make them pause.
The leaked pre-IPO presentations showed that Bitmain made a $1,137 million net profit in Q1. This means Bitmain actually lost $400 million in Q2. Still, they’ve raised more than half a billion dollars in 2018.
Additionally, they are by far the biggest manufacturer of mining equipment in the crypto space.
BitMEX research published a in depth read, and I highly suggest checking it out if the financials of a cryptocurrency mining company intrigue you.
As we also covered, Google is ending its sweeping ban on cryptocurrency-related advertising and plans to allow regulated crypto exchanges to buy ads in the United States and Japan. The new policy starts in October.
This very much signals a warming up to the space by large tech companies which had originally banned all crypto-related advertisements.
With Google onboard, it really does signal a shifting tide.
Besides industry adoption, regulatory acceptance is another big piece of what crypto needs to move forward.
We certainly saw that happen this week in the US. Congressman Warren Davidson held a round-table of 80 industry leaders to talk regulation including venture capital firms actively investing in digital tokens (Andreessen Horowitz, Union Square Ventures), token and traditional exchanges (Intercontinental Exchange, Kraken, Nasdaq, CME Group, Circle), non-profits (Coin Center), and other digital token and securities companies (Ripple, Harbor, CoinList).
The main complaints about the government’s approach to cryptocurrencies centered about the lack of transparency and clear regulation. The big question right now is in regard to what constitutes a security, especially with the 5 SEC commissioners all taking different stances.
The round-table seemed to have an impact, though, as Rep. Davidson and 14 other co-signers penned a letter to SEC Chairman Jay Clayton requesting that the SEC clarify how it is approaching token sales, saying that “current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the United States and will ultimately drive business elsewhere.”
The letter continues, saying:
“We believe the SEC could do more to clarify its position. Additionally, we are concerned about the use of enforcement actions alone to clarify policy and believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the United States to be unnecessarily fraught.”
This mirrors the viewpoints shared during the round-table by industry leaders, with the group cautioning watchdogs of the possible “brain-drain” if digital assets continue to be abided by 72-year-old regulations, as the CEO of crypto exchange Kraken said:
“Foreign companies are able to outraise their U.S. competitors and often whoever raises the most money is who wins. Not only are U.S. companies not able to raise enough to compete globally, but U.S. investors also are not able to invest in these global companies.”
This is certainly something that needs to improve in an expedited fashion if the US wants to continue to stay in the race for blockchain innovation and adoption. Needless to say, the next few years are going to be paramount for blockchain innovation, blockchain regulation, and the sovereign countries looking to participate.
CZ, CEO of Binance, was quoted as saying, “I think that any minute the bull market will return, and historically, October to December are the good months. Before Christmas are usually the months when the markets go up very often.”
I’m inclined to agree with him. Nothing is inevitable, but certainly we are seeing the market start to make moves that lead to bright days. Let’s wait and see.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop! See you tomorrow!
Doc's Daily Commentary
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Offense – Adding Trades
Offensive Actions for the next trading day:
- Ripple(XRP) is showing positive activity but we don’t want to chase after it.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
How to read this portfolio: Please read through the FAQ tab
- ETH/USD 2% added 8/10/2018 @ $363.14
- ETH/USD 2% added 9/9/2018 @ $200.50 (10% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (5% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
In today’s video I discussed our approach for identifying entry points for XRP.
In August we introduced a new “fund” project that we’ll be creating over the next few months, in piecemeal form. I will be slowly and methodically creating a “fund” with (currently) 23 assets that we will do “live” or at least very plainly indicate where we intend to enter portions of assets. As long as the market continues grinding down in a bear, we will use sentiment-based entries to hopefully secure a better entry. All that I saw were bear flags tonight; we are close to some good entries on coins showing positive divergence on the RSI. Going forward into the end of this year my plan is to do a LOT more swing trading; what would really help is a decent derivatives exchange. I am looking for big things from Digitex in this regard, which will be a commission-free futures platform however all trades must be made in DGTX as the base currency. Put yourself on the waitlist for this platform by clicking here. I have started to acquire DGTX tokens at Mercatox in anticipation of them turning up their platform, and this looks to be a good candidate for a pump prior to the production event. Here are the recent swings that we’re tracking in the portfolio below; :
- DGB/BTC – long @ .00000608 (7/23). My target exit is .000008BTC.
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
- ONT/BTC – long @ .0008905 (5/20) My target is .0013BTC.
- ETP/BTC – long @ .000522BTC (9/21) My target is .00072BTC
Please keep in mind that if you want to follow these trades, I am using FIXED RISK POSITION SIZING. This means that I am using a fixed amount of risk capital that is based on my account size, like 2%. I am assuming that the trade will burn to the ground and that I will lose that entire capital position! Only in this manner can one effectively manage a position the way that you have to. If you’ve every checked your blockfolio nervously every 5 minutes when you’re underwater, this will prevent that. I will track these positions in this area and not in the main portfolio section. I will use a public portfolio tool to do so, which you can access by clicking below:
I hope you all got a chance to catch my webinar class from earlier this year; if not, the replay is available here. If you missed my earlier webinar, “More Profits in 2018; Ten Ways to Chart Like a Pro.” then you can catch the replay here. My new class “Introduction to Technical Analysis” is now available via our online store.
If you go to buy any of our courses at our online “store” you can receive $10 off the street price with your member’s “coupon code” of member18crypto..
Coinigy is a great tool for determining prices on each exchange, however I may not have access to the full suite of tools on TradingView charts. I am currently not using it as a front-end GUI for my exchanges, which it supports.I also use Blockfolio and/or Delta to give me a quick snapshot of my holdings, and find that it does an excellent job to aggregate all of my holdings into one easy-to-read snapshot of my cryptocurrencies, which are typically located in many different places.
I am also trialing the Profit Trailer and CryptoHopper trading apps which are working well in this choppy market.
Fundamental Currency Research
For flipping Good.
For long-term holding Neutral.
What is it?
What is our verdict?
What we like: Supernodes are very interesting. No trading commissions for users.
What we don’t like: There are many exchanges already on the market. Transaction mining isn’t currently solvent.
- Project name: Bgogo Exchange
- Token symbol: BGG
- Website: https://bgogo.com
- White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
- Hard cap: 17,000 ETH (15,000 ETH during private sale and to supernodes, 2,000 ETH during public sale) for 10% of total tokens
- Conversion rate: Private sale: 1 ETH = 66,666 BGG; public sale: 1 ETH = 69,999.3 BGG.
- Maximum market cap at ICO on a fully diluted basis: $51 million based on current ETH price of $300
- Bonus structure: Whitelisted public sale participants have a 5% bonus over the private sale price, with no lockup period.
- Private sale: The private sale has already been completed with 10,500 ETH raised from 21 supernodes and 4,500 ETH from strategic investors.
- White list: Bgogo’s public sale will be a Genesis Mining event (exact date to be confirmed) that will start 24 hours before mining is officially opened to the public. Only whitelisted users can participate. Details on the Genesis Mining event can be found here: https://bgogo.com/announcement?link=mining.
- ERC20 token: Yes (will be switched to native tokens when the mainnet is launched)
- Countries excluded: TBA
- Timeline: TBA
- Token distribution date: TBA
2017- 2018Q2 Portfolio (Discontinued)
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.