Premium Daily Crypto NewsletterMarch 8, 2018
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Crypto Market Commentary
Down Further We Go?
Best Yet To Come?
Today’s market is more of the same from yesterday — non-issues causing FUD and thus causing a market sell-off. This is what we’ve been predicting for the past month, the market would recover from its 279 Billion total market cap low in February but we’d likely see a second bottom before we could consider a bull market.
While this market can do anything it wants, it was clear to us that the recovery to 500 Billion+ simply did not have enough volume or motivation to get us out of the bear market.
The prevalent rhetoric today is the continuation of a panic about the Mt.Gox trustee offloading his Bitcoin and Bitcoin Cash.
Frankly, as we said yesterday, this added fuel to the fire but was not the source of the market movement. With daily volumes around 500,000 BTC, selling 35,000 BTC over 3 months isn’t going to affect the market as much as people may think. It’s understandable that people are looking for scapegoats and someone to blame, as whales often are, but it’s clear to me this bear market stems from systemic issues within crypto, not the actions of one trader.
Here’s a corrected graph of the chart we shared yesterday:
One piece of news that we found interesting is that Coinbase now has three pending lawsuits against it. The first is a class action lawsuit, Berk vs Coinbase, filed on March 1, 2018. It argues that the Coinbase informed its staff about its plan to add support for Bitcoin Cash trading on its platform.
“To date, the Company has not publicly denied that in fact, insider trading occurred or the results of the purported internal investigation,” — Berk vs Coinbase
The second class-action lawsuit, Faasse v. Coinbase, was filed on March 2, 2018, as plaintiffs claim Coinbase held “unclaimed digital assets.”
The complaint states:
“Imagine writing a cashier’s check to a friend. The bank withdraws funds from your account, but your friend never cashes the check. Does the bank get to keep the funds? The law says ‘no.’ But this is precisely what has happened with cryptocurrencies sent through Coinbase.com, owned and operated by Coinbase, Inc.” — Faasse vs Coinbase
Coinbase, in response to the complaints, stated:
“Our priority has always been, and remains, maintaining our customers’ trust. We go to great lengths to provide comprehensive information needed to make investment decisions and to safeguard the integrity of our platform, and we hold ourselves to the highest standards of conduct.”
The third case, Sultan vs Coinbase, filed on 13th February 2018, blames Coinbase for not effectuating the two-factor authentication system, causing the plaintiff’s loss of 545 Litecoins worth about $100,000.
What’s interesting is how these cases might affect the jurisprudence of future cases related to crypto. Coinbase itself claims to have over 10 million users. With crypto-asset exchanges, like Coinbase, making millions of dollars per day more competition is expected to challenge the dominance of Coinbase. For Coinbase to remain as a top exchange its customer satisfaction must absolutely improve. The company is preparing to add more legal advisors to its team to combat potential government crackdown and ensuing class action lawsuits, as we certainly anticipate they’ll encounter.
In the meantime, please be very careful when using Coinbase. Only move and buy small amounts at a time.
Relating to exchanges, as we discussed yesterday Binance encountered an issue with users being hacked of their funds. Thankfully they were able to isolate the stolen funds and will reverse the transactions. That’s smart and well executed on their part, and they deserve congratulations for isolating the issue so quickly and being altruistic about the situation. They could have easily told those affected that it was their fault for being phished and denied any wrongdoing. Instead they are refunding people, likely at their own loss. This is smart because the backlash had they operated differently would have likely cost them millions in lost revenue. What’s even better is the hackers lost coins during this attempt, and Binance will donate the lost amount to their charity. We still believe they are one of the best exchanges in the space and they clearly have good intentions, but time will tell if they can keep it up.
You can read the postmortum here: https://support.binance.com/hc/en-us/articles/360001547431
One of the biggest trends we’re seeing is the shift from ICOs via public crowdsales to public airdrops which are meant to promote interest in the coin. For example, we received ONT for holding NEO coins, meaning we received a large number of coins that are currently worth somewhere between $2 and $3 for completely free. Not bad.
In fact, there’s a absolute explosion of coins doing this.
One word of caution before we explain anything: Be careful when giving away your information. It’s a good idea to set up a seperate email account. Always remember, if it’s free, then you are the product.
Generally, all you need to do to participate in airdrops is give them your email address and public wallet address, which is completely safe to give away as there’s nothing a hacker can do with a public wallet address other than give you money. Generally what we recommend, if the airdrop is an ERC20 coin and asking for a ETH wallet address, just head over to myetherwallet.com and set up a free wallet. Remember that you should never give anyone the private key, which will be much longer than your public key.
If the airdrop asks you to join a Telegram group, especially to confirm your participation, Telegram is free and easy to use. We recommend setting up your account on the mobile app and then using the desktop app for airdrops by opening up: https://web.telegram.org .
If the Airdrop asks for a Telegram ID, use this bot to easily get that: https://telegram.me/get_id_bot
Essentially, some Airdrops will require you to have an existing coin in order to receive the airdrop (generally these are given to platform coins like ETH and NEO so it’s just another great reason to have them!) , some will be airdropped to ICO supporters (like ICON), some will airdrop exclusively to masternode holders (like WaltonChain), and some will just require some personal information such as an email.
The best part is that you can then decide what to do with your free money. Do you sell it for another coin you want? Do you just hold on because there’s no risk because you didn’t have to invest? Do you cash it out for fiat? The choice is yours!
We have a few free airdrops you can participate in linked in the Altcoin Fundamental Analysis section below. We’ll start incorporating them into this newsletter, which hopefully will make you enough that this newsletter pays for itself!
Talk to you this weekend.
New to Cryptocurrencies? Check out our archived class “Intro to Cryptocurrency Trading” which is available for immediate purchase/viewing in the Premium Member’s Home. View more about it and watch the class today by visiting this link.
Offense – Adding Trades
Offensive Actions for the next trading day:
- Entered ONT Position (airdrop)
Defense – Managing Risk
Defensive Actions for the next trading day:
- Exited BIX position
- Exited ICX position
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
What’s reassuring is that our Tier 1’s have been the best performers over this time period, even if that performance is negative. As we’ve said in the past, this indicates to us that these will be some of the strongest performers once the market returns to the upside. Additionally, we believe it’s a good indicator that they are both platforms, which we’ve said are some of the best types coins to hold long term.
Thanks to setting tight stops, we have minimized the loss on the way down so when we do get an entry that is not stopped out, we will likely have a net positive position size for both, which is the aim for these two as we plan to hold them long term.
Here are some free airdrops you can participate in:
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 Good.
For long-term holding Good.
What is it?
FIC Network is the world’s first fixed-income network for cryptocurrencies. It enables network participants to pay with crypto for bonds, debt or other financial instruments, hedge their investment with crypto futures, and earn stable interest on cryptocurrency. We are attacking a $230 trillion global credit and fixed income financial markets.
What is our verdict?
What we like: Credit Market is huge. Good business traction and partnerships.
What we don’t like: FIC Network needs to comply with each country’s laws it operates in, could hurt long term growth.
- Project name: FIC Network
- Token symbol: eFIC
- Website: https://ficnetwork.com/en
- White paper: https://drive.google.com/file/d/0ByzKCCWTHkioZzRhTThXSi0zcWM/view
- Hard cap: $16 million (ICO Participants receive 50% of total token supply)
- Conversion rate: 1 eFIC = $0.10
- Maximum market cap at ICO on a fully diluted basis: $32 million
- Bonus structure: Private sale received 60% bonus, presale receives 30% bonus
- Presale or white list: Presale ongoing, whitelist here: https://ficnetwork.com/en/token
- ERC20 token: Yes (initially, will move to its own Stellar-forked blockchain in future)
- Countries excluded: Presale for US accredited investors only, public sale TBA
- Timeline: Presale ongoing, public sale begins April 16, 2018 (Please refer to FIC Network’s website for the most up-to-date information)
- Token distribution date: After public sale
Technical Analysis Research
Today featured more fear of SEC regulation which I believe is actually a sign of good things to come. Just ask the Winklevoss twins, the founders of Gemini.
In today’s video I discuss ways to limit loss ahead of time through 1) defining exits prior to entry, and 2) using the 2% “golden rule.”
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..
With overall crypto markets in a dull corrective market, I’ll continue to focus more on the larger cap coins until they break loose, then it will be a better market for alt-coins. Moves are not sustaining right now.
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.