Premium Daily Crypto NewsletterApril 17, 2018
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Crypto Market Commentary
Many Exciting Developments Occurring Despite Some Lingering Fear
I did say today would be interesting, right?
Most notably we’ve had a little pop in the total market cap, a nice plateau throughout the day, and recently a sell-off to make us nearly even for the day. Ideally, the market volume was rising throughout the day so this means we’re seeing true Bull vs. Bears action which is ideal for where the market is right now.
One of the more positive trends we’re seeing is how the cryptocurrency industry is poaching highly skilled individuals from both the financial services industry and the technology industry. Today CNBC reported that Blockchain.com has hired former Goldman Sachs executive Breanne Madigan as the head of institutional sales and strategy.
Now, having former Goldman Sachs people shaping the future of crypto is nowhere on my scale of optimal, but it represents to us the changing tide. No rational person leaves an executive position at Goldman, one of the most competitive businesses in the world, to join a startup unless there’s real conviction and reason for doing so.
This comes right after Galaxy Digital, founded and run by former Wall Street exec Michael Novogratz, hired Goldman Sachs executive Richard Kim as its new chief operating officer on April 10th. Matt Hougan, the CEO of Inside ETFs and a well-known face in the exchange-traded fund industry, left to join a cryptocurrency index fund manager called Bitwise Asset Management in February. Amber Baldet, blockchain program lead at JPMorgan Chase, left the banking firm to start her own venture on April 2nd. Notice a trend here?
We’ve said multiple times that you want to be investing in whatever is at the intersection of Wall St. and Silicon Valley’s interest. Not only that but if the crypto industry is so compelling to high profile members of both that they’re willing to leave very lucrative and solid jobs, then maybe we have something here that most people aren’t seeing.
What everyone in crypto did see today was Verge coin’s announcement of their new partnership with MindGeek, the leader in the online adult entertainment industry. This was the culmination of the last month’s fundraising campaign in order to reveal this partnership. The announcement essentially boiled down to how Verge would now be accepted as payment on many of MindGeek’s adult entertainment websites. We admit we were very hard on Verge yesterday and quite honestly we are genuinely surprised they didn’t pull an exit-scam like Bitconnect and run away with the money. Being endorsed by sites that have daily viewership in the millions is certainly good for Verge and crypto itself and there’s no denying that.
But, if you’ll allow us to be sceptical here as we like to do, there were many red flags leading up to this announcement. The lead developer promised that this partnership would “change crypto forever”, and while MindGeek is certainly a big flashy name, the simple truth is that they’ve accepted Bitcoin and other cryptocurrencies on many of their sites for years now. Once you begin to look past the headline, there’s not much substance here. Our educated guess as to what’s transpired here is that MindGeek received some or all of the 75 Million XVG (Verge) that was raised in the fundraiser that had been requested from the Verge community for the continued development of the coin.
Once MindGeek sells that XVG, they’d have as much as $7 Million USD as collateral to receive XVG payments without having to do anything outside of the little marketing they did today. MindGeek receives free advertising to hundreds of thousands of people that are of their target market while the XVG team gets a very convenient pump to offload their personal XVG coins.
After all, XVG is one of the most centralized coins out there. Of all wallets for XVG, the top 100 own 80% of the total supply, up from 66% in December. Given that 90% of the maximum supply has already been released into circulation, that is extremely worrisome.
Needless to say, we’ll admit we had low expectations of Verge today and they did impress in some respects, but this is by no means a “partnership” as both of them want to indicate. Offering a coin as a payment solution is no partnership. VISA is not partnered with your local grocery store simply because you can use your credit card there. As we suspected there was a massive sell-off in XVG today, which is classic buy the rumor sell the news. We hope you didn’t get burned as we advised you would.
Verge is meant to be a privacy coin, but privacy does not mean security. We’re hosting a free webinar tomorrow to discuss some common and easy methods for better securing your cryptocurrency. Sign up here!
One piece of news causing FUD today was a headline that read, “New York Attorney General launches an inquiry into 13 crypto exchanges.”
That sounds ominous, but reading past the headline reveals a very different picture. From the press statement of New York Attorney General Eric Schneiderman:
“The Initiative stems from the Attorney General’s duty to protect consumers and ensure the fairness and integrity of the financial markets. Before trading on a new platform, sophisticated investors routinely demand robust disclosures, allowing them to assess the platform’s operations and the adequacy of its policies and internal controls. The questionnaire delivered to the virtual currency platforms asks for similar information so that average investors can better understand the risks and protections.”
To us that doesn’t sound compulsory. Instead, it sounds like a volunteer effort to improve transparency and protect New York’s investors. Most importantly it’s not an investigation into illegality but instead looks to be an effort to better understand cryptocurrency in order to better inform newcomers.That’s exactly the sort of regulatory interaction we’d like to see from lawmakers who will be imposing new rules and regulations on cryptocurrency inevitably. Active compliance, helping to explain rather than obfuscate, and even helping to write the laws themselves will put crypto in a much better position to seek mainstream acceptance and adoption.
Another way we see that happening is that governments of the world begin to actively use blockchain services and solutions in their infrastructure and project execution. One project that continues to give us hope of that dream is Waltonchain, who today confirmed that they are indeed part of the Alibaba Industry Alliance.
“Recently, Xiamen ZhongChuan IoT Industry Research Institute, a subsidiary of Waltonchain, reached a comprehensive cooperation intention and signed a partnership agreement with Alibaba Cloud (Aliyun) to join hands in the areas of smart city solutions and blockchain application schemes.
With the continuous development of human society and the continuous expansion of modern cities, the world’s bearing capacity is facing a severe test. According to the World Bank, by 2030, two-thirds of the world’s population will live in cities. As the city’s population increases, the strain on limited resources and services available, such as energy, healthcare, housing, transportation and water, will increase at an unprecedented rate. ‘Smart cities’ is not just a buzzword, they are the perfect solutions to these challenges.”
The big takeaway here is Smart Cities. This is the integration of new technological solutions with existing infrastructure solutions. Imagine a world where automation coexists with us at even our most basic needs. For example, a public trash bin with RFID sensors to monitor the amount of waste. Should the waste hit a certain level, a robot would be dispatched to empty the bin and dispose of the waste. This is a very isolated example and certainty having sensors and robots does not a smart city make, but the point is that by upgrading our living environments with cutting edge technology we stand to enter a new era of living standards and progress.
This is why we bring up Waltonchain within this context. IoT Blockchain will be an integral backend to these applications. Specifically, this has to do with the most ambitious infrastructure project of the century: China’s One Belt One Road (OBOR) project.
According to Wikipedia, it’s a “development strategy proposed by the Chinese government that focuses on connectivity and cooperation between Eurasian countries, primarily the People’s Republic of China (PRC), the land-based Silk Road Economic Belt (SREB) and the ocean-going Maritime Silk Road (MSR).” What this means is that China is setting aside trillions of dollars in order to rapidly develop new infrastructure, logistics networks, and smart cities in order to massively improve trade and trade relations with the West.
Says one architect working on the project as it relates to smart cities, “We need to create a smart framework. We spend a lot of time lobbying governments to adopt technological advances. Though those at the top tier of the government are eager for change, they also have a lot to consider and find ways for incremental, rather than disruptive, applications of such technology.”
So this is where we’ll leave that for now. Needless to say, we see this as one of the best investment opportunities that have ever occurred, and blockchains solutions are in a unique position to be utilized for it in ways that would be extremely lucrative to you as an investor.
Chinese based IoT and Platform blockchain solutions such as Waltonchain, Vechain, NEO, and Qtum represent ideal candidates for government contracts and collaboration. Of them, we clearly like NEO and Walton, but new projects are getting started all the time and we’re constantly looking to stay ahead of the trend.
We’ll continue to watch this develop but we personally think it’s a golden opportunity should one of these projects get tapped to help manage logistics or build the infrastructure to support the new smart cities being built alongside OBOR.
Talk to you tomorrow.
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Offense – Adding Trades
Offensive Actions for the next trading day:
Defense – Managing Risk
Defensive Actions for the next trading day:
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.
ReadySetCrypto’s 7 Categories Of CryptoCurrency
Tier 1 coins are those coins which we have considerable assets invested, are firm believers in the project direction and execution, and have very little reason to sell within short to mid term. These are coins which we risk evaluated to be very solid, and have a high probability of existence duration.
NEO ($NEO) is classified as a Dividend and Platform coin. As our largest holding, we believe NEO has the potential to become a dominant smart contract and DApp platform in 2018. It’s four most compelling features are:
- An innovative consensus algorithm which will allow for greater TPS (transactions per second) over its competitors.
- A dividend structure for holders, incentivizing coin retention and network stability / diversity.
- SE Asia location, enabling NEO to break into markets more easily than competitors.
- Agnostic smart contract language, allowing for smart contract developers to use existing mainstream programming languages, which allows for cheaper smart contract implementation as compared to Ethereum who’s proprietary smart contract language, Solidity, can be a barrier to integration.
NEO is best acquired through Binance. Storing NEO on the Binance exchange will result in a GAS distribution once a month on the first. We recommend the NEON wallet for safe storage. GAS will be distributed on the NEON wallet daily.
WaltonChain ($WTC) is classified as a Dividend and Utility coin. Waltonchain is on the cutting edge of using RFID hardware to enable supply chain management 2.0. We believe Walton has the potential to become a dominant IoT blockchain solution Waltonchain is the only truly decentralized platform combining blockchain with the Internet of Things (IoT) via patent pending RFID (Radio Frequency Identification) technology. The custom RFID chips are able to digitally sign and verify transactions at the integrated circuit level, automatically and instantly reading and writing data to the chain without human intervention. This unique implementation of blockchain + IoT facilitates the true interconnection of all things in the real world with the virtual world, creating a genuine, trustworthy and traceable business ecosystem with complete data sharing and absolute information transparency. Walton has two major competitive advantages:
- A recently confirmed (to be signed) partnership with China Mobile’s IoT Alliance. China Mobile is the largest mobile telecommunications service in the world as well as the world’s largest mobile phone operator by total number of subscribers. Walton’s Management system is set to be implemented through mobile communication networks, and China Mobile is the largest one. Waltonchain is positioning themselves to be the single connector of the entire Internet of Things initiative put forward by the China Mobile IoT Alliance.
- They implement the blockchain through the RFIDs at the foundational layer. Their technology is patent-pending and gives Waltonchain a solid claim as the only blockchain that connects the physical world with the virtual world with truly reliable data. This is because all other IoT solutions tag items through API, and this means all the data is first passed through a centralized intermediate, a potential point of vulnerability.
Ethereum ($ETH) is an open blockchain Platform that lets anyone build and use decentralized applications that run on blockchain technology. Like Bitcoin, no one controls or owns Ethereum – it is an open-source project built by many people around the world. But unlike the Bitcoin protocol, Ethereum was designed to be adaptable and flexible. It is easy to create new applications on the Ethereum platform, and with the Homestead release, it is now safe for anyone to use those applications.
OmiseGO ($OMG) is classified as a Dividend and Utility coin. OmiseGO is a Southeast Asia-based company creating an e-wallet that will make transfer of assets and currencies possible. Merchants and users of the wallet can transfer whatever asset or currency they desire. For example, you could use your ethereum, bitcoin, international fiat, or even your airline points to buy groceries using the e-wallet app on your mobile phone. Transfers can happen across borders, or even while traveling abroad. Unlike Western Union or PayPal for example, the fees are almost negligible, and the transfer is instant. Because it’s based on a blockchain, there are no intermediary banks necessary and users don’t need bank accounts to access those funds. This is especially good for migrant workers who send money home and often don’t have bank accounts and are forced to use expensive wire services instead.
NAVcoin ($NAV) is a Privacy coin with upcoming Platform features. NAVcoin has been around for 3 years. It is not minable, instead being based on a Proof of Stake system in which stakers earn 5% annual returns. Theoretically this means there could be 5% inflation on the supply, however, that would require every coin holder to stake, so likely there will be very marginal inflation between 1 and 3% year over year. It is a currency originally based off of Bitcoin version 0.13, which should tell you it’s got a good foundation from which to build its feature set. Being based off Bitcoin, it currently is a method of transaction, with notable upgrades in the form of Segwit (with possible lightning network integration in the future) and 30 transaction times with extremely marginal fees. That’s great but a lot of coins have that going for them, so thankfully we’re just getting started with the real interesting pieces of NAV. The first and currently only implemented feature, NavTech is a unique dual blockchain technology. Essentially, NAV runs on these two blockchains in order to completely disconnect the sending wallet (your wallet), to the receiving wallet (where the money is getting sent). Think of it like a VPN, NavTech completely strips the sender’s details so the transaction is completely anonymous. The anonymous transaction space has really gotten big lately, with Monero’s recent price action and Ethereum’s implementation of ZKSnarks being two big examples that come to mind.Moving on to the roadmap, there are two big upcoming features for NAV:
- The first is Polymorph, which is a really cool blend of Nav’s anonymous transactions and Changeally’s instant exchange. What this means is that, for example, I wanted to pay someone in Bitcoin but I wanted to do it anonymously. Polymorph would take my bitcoin, turn it into navcoin in order to be processed and sent anonymously using the Navtech dual blockchain, then turned back into bitcoin at the to be sent to the receiving wallet. This will certainly set NAV apart, as it guarantees anonymous transaction for all of the coins on changeally. This is huge for exposure, and a great opportunity for NAVcoin to gain trust, which is absolutely critical anonymous transaction coins.
- The second big upcoming feature is ADApps, or Anonymized Decentralized Apps. This is also a huge potential win for Nav as there is already a huge amount of interest in the crypto space surrounding Dapps, such as Ethereum and Omni. Adding in the anonymous layer would attract projects that would value the anonymity. Nav is still in the planning stages for this project so it could still be awhile before it comes to fruition, but we should see the whitepaper for it soon, and if they could be first to market with ADapps that could prove to be a killer feature for them as it would give them first access to the interested demographics.
Ripple ($XRP) is a real-time Payment protocol for anything of value. It’s a shared public database, with a built-in distributed currency exchange, that operates as the worlds first universal translator for money. Ripple is currency agnostic and has a foreign exchange component built right into the protocol. Ripple acts as a pathfinding algorithm to find the best route for a dollar to become a euro or airline miles to become Bitcoin. It will look at all the orders in the global order book. The case for XRP comes down to the following: 1) Payment systems work best with bridge assets to focus liquidity. 2) There are good reasons to expect a cryptocurrency to be the most popular bridge asset. 3) There are good reasons to expect that cryptocurrency to be XRP.
- Open, decentralized payments will have lots and lots of assets, including national currencies of all kinds and cryptos. A significant fraction of payments will be among assets that aren’t the most popular. Using intermediary assets to settle those payments concentrates liquidity and reduces spreads.
- National currencies are always tied to jurisdictions and can’t be universal. Systems built around them will never be as open and inclusive as systems that aren’t.
- XRP settles faster than any other major crypto. It higher transaction rates than other major cryptos. It is beat by others only by the amount of liquidity available today. And, most importantly, XRP has a company that is devoted to making sure XRP succeeds for this specific use case.
Simply put, ICON ($ICX) is a massive scale blockchain Platform that allows
- Decentralized Application (DAPPS) – Build DAPPS on ICON Platform like on Ethereum and NEO. Yes, soon, you will see ICOs happening on ICON platform for different DAPPS
- Interchain (Interoperability with Blockchains) – Allows different blockchains connecting to one another through their protocol. ICON is fully compatible with traditional blockchains like Bitcoin and Ethereum and in future can bridge other public blockchains such as Qtum, NEO and many others to achieve their mission statement – “Hyperconnect the world”
- Artificial Intelligence (AI) – Use of AI to ensure all nodes contributing to ICON Republic/platform are rewarded fairly and not to have certain powers over distribution policies. AI will continue to learn a variety of variables to determine optimal distribution policies and achieve complete decentralization.
- Decentralized Exchange (DEX) – ICON will integrate different DEX protocols on their platform to facilitate exchange of ICX and other future ICON platform currencies. Bancor protocol will be their first DEX protocol when mainent launches this month end and Kyber and others will follow. Not just throwing Kyber’s name out there, it was confirmed they are working with each other, official partnership yet to be announced.
Fundamental Currency Research
The first decentralized exchange on the NEO blockchain is up and running.
Switcheo has had more than $2 million in trading volume in its first week online. The platform features 10 tradable coins, including DeepBrain Chain, QLINK and Red Pulse.
For those who watched my video below, it was a perfect opportunity to get in on the blossoming NEP-5 ecosystem that NEO is building. Switcheo itself has more than doubled since my video discussed it!
There were several articles today linking the drop in market cap to “BTC Whales”, such as this one: https://www.marketwatch.com/story/bitcoin-whales-dump-100-million-of-digital-currency-in-24-hours-2018-04-17
The address in question actually belongs to Bitfinex. What actually happened is that over a 1,000 new shorts appeared on Bitfinex right around the time of the AG Inquiry news. This is likely fuel for the next short squeeze, similar to what we saw last Thursday. In the end, it’s only good news and it reminds us that we need to look further than blaming price movement on “whales”.
In this section we’ll feature a daily ICO or new coin we think you should check out. Based on your country, you may not be able to participate in the ICO, but you will be able to trade the coin once it is listed on an exchange following its ICO (usually only a couple of weeks). ICOs are where a lot of money in crypto is made. Here’s proof. That said, we should warn you: ICOs are highly risky endeavours and you need to mitigate any potential losses. Treat it as money you’ve lost the moment you contribute to the ICO. We are not responsible for the ICO’s performance. Today’s featured ICO / New Coin is:
For flipping Neutral.
For long-term holding Neutral.
What is it?
Paymon suggests its own view of standard Blockchain, introducing ways of dealing with most issues of existing cryptocurrencies: the scaling problem, archaic architecture, low speed, and high transaction fees. Our new blockchain Hive improves all cryptocurrency instruments: from technology and infrastructure to regulatory compliance with current regulations. Business platform Profit, developed under our project, will be a universal solution for everyone: from developers and basic users to commercial organizations and ICO projects. Moreover, the project is a great investment opportunity in virtue of its tokens. Our team has currently created a blockchain messenger, which allows its users to safely and easily send each other not only messages, but also cryptocurrency.
What is our verdict?
What we like: Good marketing and idea.
What we don’t like: Existing solutions like Byteball mean they will be fighting a tough battle from day 1.
Technical Analysis Research
These are some of the coins that we’ve already been watching or ones that we already own, but seeing volume and strong price action is a great first start. Here’s my current stance on things: 1) if you are a buy/hold HODL’er, then I believe that now is the time that you can start to “nibble” on some longs that you want to acquire longer-term. (that’s NIBBLE, not PLUNGE) and 2) if you are a TRADER then remain patient for established uptrends to hit the markets, after which dips can be utilized. Myself, I prefer buying assets that are rising in price. 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 $59 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 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 will also be experimenting with the Profit Trailer app which might be useful in this choppy market. I hope to share results and tips/tricks with you in here once I get this bot up and running.