Premium Daily Crypto Newsletter

March 13, 2018

Crypto Market Commentary

Sideways

A tale of two exchanges

 

One of the biggest stories from last month was the exchange Bitgrail being hacked of $200 Million worth of Nano. The way they handled it and the actions of the owner and CEO were frankly disgraceful. No one in their right mind should trust anything this group has to offer.

 

So suffice to say we were very surprised that not only were they back declaring that they would be opening their doors once again, but all of those who were personally affected by the hack would be receiving 20% of their original Nano balance. Here are the most interesting excepts from the udapte found here: https://docs.google.com/document/d/1AvWoKmiVHsaZsw69A0ZyXRvsnyGQnnlwGi_szSlUqgY/edit

 

“- purely voluntarily to help affected customers, Bitgrail is going to create a cash fund to reimburse customers for stolen funds over time

– for this a new token BGS (Bitgrail Shares) will be established on the platform

– on reopen for all non-nano funds will be available and withdrawable, nano balance will be set to 20% of what it was before, for the remaining 80% according number of BGS will be in the wallet, not withdrawable or depositable, but tradable

each end of month, Bitgrail will use 50% of platform profits to buy back BGS from customer proportinally, at a fixed buyback price of 10.5$ / BGS. Of course alternatively users can trade their BGS on the platform for market price instead of fixed buyback price

– use of platform after reopen qill require a waiver of all rights for legal action, this will include a paper that users need to doanload, sign and reupload”

 

So, the remaining 80% of the missing Nano is going to be replaced with this token BGS, which will be bought back from customers at a fixed price, and any use of these funds constitutes waiving your ability to pursue legal action. So, Bitgrail is essentially giving the choice of take the money and run, or hope that justice comes through.

 

While we are not in a position to advise you if you are affected by this hack, we feel strongly that this is a terrible deal meant to prey on those who need the payout. The Bitgrail debt token will be deemed worthless because no one will ever want to touch that exchange again, so selling it immediately won’t yield much and waiting for the exchange to buy it back will take a very long time. The token itself is server sided and essentially worthless as it is unregulatable. It’s a money printing machine that the Bitgrail owners can use to buy anyone’s BTC should they be foolish enough to trade it for BGS.

 

Unfortunately, the legal option might not be much better. There are still lawsuits ongoing against Mt.Gox years later and people affected by that hack have not seen any compensation.

 

Once again, get your crypto off exchanges.

 

That even applies to Binance, which continues to dominate headlines and our recommendations as today it announced Binance Chain, it’s new decentralized exchange.

“After extensively researching decentralized exchange frameworks and analyzing existing implementations, we believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed. Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence. We stand here today because we believe that Blockchain technology will change the world. In the face of adversity, we have always elected to tackle issues head-on, instead of retreating. As such, we have decided to officially launch the development of the Binance Chain.

As a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. At the same time, Binance will transition from being a company to a community.”

We find this to be extremely exciting news for the future of crypto. Since we participated in the very first day Binance was open back in July, we’ve watched it absolutely shake up the crypto world. It’s meteoric rise can likely be traced to its insistence on professionalism and being community focused. It’s extremely rapid coin listings, its community coin vote, the giveaways, the referral system, some of the lowest trading fees in the industry making it a haven for day traders, one of the best fee split exchange tokens around, and time and again showing that in the face of adversity they are communicative and treat their customers with respect. Comparing them to Bitgrail, for example, is night and day.

 

That being said, the rise of Binance has slowed it down considerably. Coins are not listed as quickly anymore, giveaways are less frequent and the referral system has been reduced. So suffice to say we’re delighted this is the direction they’re pursuing. For those who don’t know, decentralized exchanges are exchanges in which you control the private key, meaning you control the crypto, not the exchange. The current decentralized exchanges, which having somewhat improved this year, are still miles away from being user friendly and accessible for most traders. At the end of the day, most traders don’t mind sacrificing some security if it means the trading is easier and there’s less steps involved.

 

So, we’re very curious to see what Binance will do with this. We theorized last month when discussing decentralized exchanges that most exchanges were working in secret on their own versions. This announcement today was only their declaration that they’ve begun work on this. It will likely be months before we see any indication that we can begin trading using this. Furthermore, they will not be integrating the decentralized exchange into their existing platform, rather making it seperate. Binance hasn’t exactly been known for intuitive UI so we’re a little cautious to say they’re going to make the decentralized exchange process remarkably easier than it currently is, but nonetheless it’s exciting to see a large exchange tackle this so publicly.

 

Speaking of publicly, it seems the WinkleVoss twins are going to be featured two days a row in our newsletter. It’s natural to assume they’re humbled.

 

Since they became involved in Bitcoin, the WinkleVii have been pushing for regulation that works with and not against cryptocurrencies. They rightly assume that once the proper channels and frameworks are in place, the floodgates will open and institutional investors will invest in the space. To that end, they’ve put forth a framework for self-regulation of the virtual-currency sector called the Virtual Commodity Association (VCA).

 

From a blog post on their exchange, Gemini, they say that the dearth of regulation and a need for the market to evolve has pushed them to try and shepard the industry forward with adoption of broad practices around responsible financial management, transparency, cybersecurity, and record-keeping.

 

‘The promise of virtual commodities and their impact on the future will be profound—but individuals and institutions need to feel safe and secure when transacting. We believe a thoughtful SRO framework that provides a virtual commodity regulatory program for the virtual commodity industry is the next logical step in the maturation of this market.’

 

The proposal comes as the Securities and Exchange Commission has warned that it is taking a hard look at exchanges, threatening to crack down on cryptocurrency platforms.

 

“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration,” the SEC said.

 

While we support such an initiative, if the recent Bitcoin fork is any example of solidarity or lack thereof in the crypto community, getting all parties to agree on something will be a daunting task. Furthermore, it could quickly become a situation of “Who will guard the guards themselves?” and a powerful oligarchy could emerge.

 

Still, cooperation with the governing bodies looking into this space is preferable to having no solutions and waiting for them to write the rules.

On Wednesday we’ll be making available our next premium class, “How To Find Your Next Big Cryptocurrency: Intro To Fundamental Analysis”, which will be a comprehensive guide on how Mav finds his picks, evaluates coins, assesses ICOs, and builds a portfolio of solid coins that aim to be strong performers. As a primer, we’re offering a FREE one hour webinar on Wednesday where Mav will walk through each of the steps he uses to evaluate coins! Be sure to sign up even if you can’t make it — we’ll email you the recording!

To sign up for Wednesday Evenings 8pm ET (New York) webinar, please visit this link. If you cannot attend the webinar, we’ll record and archive the replay for you to watch later.

Have a great weekend everyone.  

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Offense – Adding Trades

Offensive Actions for the next trading day: 

  • None.

Defense – Managing Risk

Defensive Actions for the next trading day: 

  • None.

Current Portfolio

Desired Holdings

  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.

None.
None.

 Tier 3

REQ

SUB

LINK

NANO

KNC

Tier 4

BNTY

TAU

WISH

PHR

LOCI

XBY

ELA

ECC

POE

HPB

ICX

BIX

How to read this portfolio: Ticker: Contains the ticker code for the coin. You can search this ticker in Coinmarketcap to learn more about the coin. The color denotes the risk tier by our evaluation. Dark Red = T1, Dark Green = T2, Dark Blue = T3, Light Blue = T4 (Colors in the Ticker column do not interact with the colors in the other columns) Cost Basis = Our average purchase price for this coin. Current price = The average price of the coin based on the exchanges it is listed on. Strategy = What we plan to do with this coin. Staking is receiving dividends for that coin. Master node is also staking, but with a higher return rate for having a (large) number of that coin. Stop = Our exit point, if it exists What do the colors mean? The colors in the ticker column represent the risk profile of that coin. The colors in the other columns reflect what sector(s) that coin belongs to. Some coins belong to multiple sectors, which is indicated by multiple colors. 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 ($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

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

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

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.

Tier 2 coins are those coins which have performed extremely well, we have a large amount of assets with, and we believe will continue to operate with high marks. What separates these coins from our Tier 1 status is a flaw or they haven’t yet proven their defining feature, though we believe they will.

NAVCoin

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

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.

 

Tier 3 coins are those coins which we have moderate investments and we believe have a possibility of high performance in the future, but as of yet have not shown enough performance to reduce their risk profile. Tier 3 coins are coins which are moderately risky, but due to our risk analysis of the project and team we believe have minimal chance of failure.   
Tier 4 coins are coins which we have minimal stake in, are highly risky, and we are contributing no more than 2% of our portfolio to. These coins represent the outer fringe of our risk analysis, in that we have little information to work with, have little insight into the coin’s performance, and at the very best we are making an educated guess that they will be successful. If a coin performs well and proves that it has a commitment to its compelling feature, it will be moved to the Tier 3 status.  

ICON

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

One of our favorite mobile wallets, Enjin, has finally released their iOS version. It supports BTC, ETH, LTC, ENJ and all ERC-20 tokens by default. What’s important is the Enjin Wallet never holds or has any access to your funds — you remain in total control of your private keys. You can always restore your wallet or funds on any device with your recovery 12 word passphrase. The only negative here is that Enjin is closed source, so some who believe strongly against that will prefer something else. Unfortunately, there doesn’t seem to be any good multi-coin wallet for iOS that is. You can get it here: https://itunes.apple.com/us/app/enjin-cryptocurrency-wallet/id1349078375?ls=1&mt=8   One amusing comparison we read today is the comparison of Bitcoin to Napster.   Ripple CEO Brad Garlinghouse recently claimed that cryptocurrencies are solving real-world banking and remittance problems — with future generations set to build and improve on the foundation laid by blockchain technology. In doing so, he also stated that Bitcoin “is the Napster of digital assets.”   “Some may look back at Bitcoin and say that it is the Napster of digital assets. What I mean by that is that Napster was the first to digitize music and demonstrate that you can do a lot of cool things with that. But ultimately they were circumventing trademark laws, they were circumventing royalty payments and then government stepped in and Napster wasn’t successful. But Spotify, iTunes, and Pandora were successful. I think what you will find is that maybe the next generation of digital assets will end up solving some of the problems that Bitcoin set out to solve.”   We think this an inaccurate comparison and hopefully, Bitcoin’s legacy will be more than just an amusing anecdote.  
VeChain ($VEN) continues to be a partnership powerhouse.   Real world applications and partnerships are key to any crypto, and help to reduce the speculative nature of a cryptoasset.   “On March 13, 2018, VeChain entered into a partnership with LogSafer, a leading supply chain risk management and a major logistics insurance platform in China with over 2,500 corporate clients. In the agreement, the two parties will work together to integrate big data and Internet of Things technology into existing and future solutions. The combination of VeChain’s proprietary IoT sensors and the VeChainThor blockchain applied intelligently to the supply chain risk management industry will assist in revolutionizing insurance and value protection services for shipping, logistics and trading companies of every size. The logistic insurance market is estimated by Grand View Research to be approximately $50 billion globally.”

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:

 

skychain

For flipping Good.

For long-term holding Good.

What is it? 

Skychain is an open infrastructure, based on blockchain, which provides the possibility to create, train and use high-quality medical neural networks. IBM estimates the artificial intelligence market in the healthcare sector to reach $200 billion in a few years. Skychain’s goal is to control more than 70% of that market! The way to achieve this goal is to create the best open infrastructure that will accumulate the resources of the majority of participants of this industry and surpass any closed corporate product.

What is our verdict? 

What we like: Healthcare sector on blockchain is always appealing. Great to see IBM’s Watson for Health revived here in an ICO.

What we don’t like: Website is sloppy. Links don’t work. The whitepaper has sections in Russian. LinkedIn profiles show unrelated experience.

 

16 days left (ICO)

Token
SCH
Price
1 SCH = 1 USD
Platform
Ethereum
Accepting
ETH, BTC
Soft cap
10000000 SCH
Hard cap
30000000 SCH
Country
Russia

Website: http://skychain.global/

Whitepaper: http://skychain.global/files/wp.pdf

Technical Analysis Research

Here’s another piece of news concerning regulation; Christine Lagarde of the IMF called for regulation of crypto using the same laws as traditional markets. Again, I view this as crypto-positive because more regulation means more “certainty” and this will only help to attract the big money off of the sidelines. With more and more uncertainty coming into the “regular” financial world due to potential tariffs, interest rate hikes, etc…..crypto might be viewed as a safe harbor…wouldn’t that be an odd twist.    BTC is still trading in a bear flag pattern on the daily chart, more apparent on the hourly chart. I really had nothing to add to yesterday’s report so I’ll check in with my thoughts tomorrow.   Mav will be announcing his next class this week, “How to Find Your Next Big Cryptocurrency.” and he’ll talk about it this Wednesday at 8pm ET (New York time) To sign up for Wednesday night’s webinar please visit this link.

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.
I am doing the majority of my Technical Analysis work on TradingView and Coinigy, and I have a BitFinex app on both my iPad and Android smartphone. All of these charting platforms call a TradingView API. TradingView is the 800 lb. gorilla in the Crypto charting space until the “established” players want to make a go at Crypto, like Ninjatrader, Tradestation, eSignal, Sierra charts, etc. My sense is that TradingView has such a head start that it will be very difficult for the big boys to make a dent in this space for a while. Until that point, TradingView has almost a monopoly in this space. If you have a particular tool that you think is superior, please let me know.   You can access the BitFinex and TradingView platforms for free, however there are some paid features that you might want to consider depending on your needs, such as expanded watchlists, different study sets, account alerts, etc.

  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.

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