California Based Reality Shares Joining Bitcoin Hedge Fund Arena
August 15, 2018
Bitcoin News | Crypto News | Latest News
California-based asset manager Reality Shares has become the latest competitor in the Bitcoin hedge fund space, an anonymous source told Business Insider August 15.
Reality Shares, which became known in the cryptocurrency space this year after launching the first Chinese blockchain ETF in June, has reportedly already attracted $25 million for the fund.
Capped at $100 million, the multi-strategy fund would “be a mix of arbitrage, venture, and directional strategies,” the unnamed person “familiar with the firm’s plan” told the publication.
The 2018 bear market in cryptocurrencies has made life difficult for hedge fund operators, which number over 360 as of August.
Industry commentators have raised concerns that continued market suppression would lead to the closure of over 10 percent of said hedge funds by next year.
“People are able to leverage good returns last year to try to raise money this year, but this year is going to be different,” fund investor Rick Marini told Bloomberg about the downturn in April.
Venture capitalist Spencer Bogart meanwhile told CNBC in late June that hedge fund activity could in fact “artificially” lower Bitcoin prices.
Should Reality Shares raise the full $100 million amount, its fund would rival the only 28 that have passed the figure.
Earlier this week, the cryptocurrency markets slumped: Bitcoin (BTC) lost its $6,500 support, and Ethereum (ETC) dropped well below the $400 mark (rates stand at $6,620 and $319 respectively by the press time). While it’s important to remember that on such a volatile and scarcely regulated market, news might affect the prices to a lesser degree, and the recent drop correlated with the U.S. Securities and Exchange Commission (SEC) decision to postpone its verdict on the listing and trading of a Bitcoin exchange-traded fund (ETF) until late September.
The SEC has gained the reputation of being a major news-maker in the cryptocurrency field: The watchdog’s decisions toward the market have been associated with a number of price drops and bull runs.
SEC deems DAO tokens to be illegal securities
When: July 2017
Alleged reaction: Slightly bearish
In July 2017, the SEC came through with a major decision, putting its mark of interest on the crypto market. The regulator reviewed the infamous decentralized autonomous organization (DOA) case and concluded that DAO tokens, issued via its Initial Coin Offering (ICO) back in 2016, were in fact securities and hence had to register with the SEC beforehand.
By making that move, the SEC effectively showed that many other ICOs, which were abundant during their unregulated, ‘free run’ throughout the 2016-2017 period, might be in trouble as well. In order to determine if an ICO constitutes a security or not, the SEC usually applies the Howey Test — essentially, if a token is marketed as a profit-oriented asset, most likely it will be deemed a security being offered by the agency. However, the watchdog has explained that such decisions are made on a case-by-case basis, as the facts and circumstances of any investment transaction — including economic realities — will determine whether the transaction constitutes the offer of sale of a security.
Even though the SEC decided not press any charges that time, it gave a clear signal that the ICO frenzy could be over. Nevertheless, the market barely reacted: While the top five coins fell in price on the day of the announcement, the overall reaction wasn’t dramatic. Ethereum went down about 10 percent, but soon bounced back to its previous value. It might have been the result of market volatility rather than the SEC news, as such.
The SEC denies second Winklevoss ETF application
When: July 2018
Alleged reaction: Slightly bearish
The prospect of getting an authority-sanctioned, crypto-backed ETF has been widely discussed in the crypto community. Some believe it will provoke mass adoption, and the prices will ascend, while others remain skeptical — leaning toward crypto-anarchic sentiments. The SEC gets to decide if the industry is ready for an ETF, and the watchdog hasn’t been particularly optimistic thus far.
In either case, the market tends to react to most ETF-related news. A stark example is the recent SEC’s denial of the Winklevoss twins second application on July 26, which happened just prior to the latest ETF-induced panic in the market. The SEC wasn’t convinced by the Winklevoss’ plea that Bitcoin markets are “inherently resistant to manipulation,” which was among the primary reasons for the rejection.
As mentioned above, the Winklevoss brothers had tried registering a Bitcoin ETF before — their first attempt dates back to 2013. That time, it took the SEC four years to come up with a decision: Finally, on March 10 of last year, the agency denied the initial application based on concerns “that significant markets for Bitcoin are unregulated.”
Both times, the market reacted negatively. In March 2017, the price of Bitcoin fell from $1,300 to around $1,100 in a single day. In July 2018, BTC lost over $400 within the span of just three hours, although it managed to regain its value within the following 24 hours — SEC Commissioner Hester M. Peirce’s statement of official dissent, which was published soon after the hearing, could have helped in that rebound. In it, she opined that the agency’s move “sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of Bitcoin ETPs [Exchange Traded Products],” recognizing the SEC’s influence in the market.
The SEC denies VanEck SolidX ETF request
When: August 2018
Alleged reaction: Strongly bearish
Similarly, this catastrophic week on the crypto market is largely associated with the SEC postponing its decision on the listing and trading of a Bitcoin ETF powered by investment firm VanEck and financial services company SolidX until Sept. 30.
The VanEck SolidX ETF application was submitted in June and was generally considered to be the most promising among crypto-backed ETFs: It didn’t feature bold assumptions akin to the one submitted by the Winklevoss twins that claimed BTC markets are “inherently resistant to manipulation.” Moreover, the VanEck SolidX fund is physically backed — meaning that it will actually hold BTC — and both firms have reassured that this will protect against the loss or theft of the cryptocurrency. According to their filing with the SEC, each share of the VanEck SolidX Bitcoin Trust is set to cost a hefty $200,000. As SolidX CEO Daniel Gallancy explained to CNBC, the price is set at a higher rate to focus on institutional investors, and the fund hopes to get listed on the Cboe BZX Equities Exchange.
On Aug. 7, the SEC issued a document citing their right to extend the review period. It also stated that the agency had received more than 1,300 comments on the proposed rule change to list and trade the VanEck SolidX BTC shares. Per the document, within 45 days of the filing of a proposed rule change — the trust submitted their application on June 6 — or within 90 days, should the Commission deem necessary, the Commission will approve, disapprove or extend the period of consideration.
While the news seemed rather neutral, and essentially meant that the SEC simply needs more time to rule whether the crypto industry is suitable for an ETF at the moment, panic induced and the markets plummeted: After solid growth to break above the $7,000 mark earlier that day, BTC saw a loss of around $500 in six hours and has lost around 12 percent this week. Similarly, other coins crashed as well — e.g., Ripple (XRP) lost as much as 23 percent of its value since the news was announced.
On the other hand, bullish news on the market that came out recently, like the announcement of upcoming cryptocurrency project Bakkt by the Intercontinental Exchange (ICE), which operates 23 large global exchanges — including New York Stock Exchange (NYSE) — appeared to be largely ignored. In an interview with CNBC, Pantera Capital CEO Dan Morehead claimed that investors were “overreacting” to the SEC postponing the ETF hearing. He predicted that a Bitcoin ETF approval will take “quite a long time,” citing the nascent stage of crypto adoption. The hedge fund manager also stressed that the most recent asset that gained approval from the SEC for ETF certification was copper, a metal that “has been on earth for 10,000 years.”
SEC and CFTC held a joint meeting where they recognized cryptocurrencies’ importance
When: February 2018
Alleged reaction: Strongly bullish
On Feb. 6, the SEC — along with the Commodities and Future Trading Commission (CFTC) — held a highly anticipated joint hearing in which they elaborated on their stance toward cryptocurrencies, ICOs and blockchain technology. During the meeting, the regulators gave credit to the cryptocurrency industry for adding a new paradigm to the financial system, stressed the importance of fair regulatory frameworks and famously said that “if there was no Bitcoin, there would be no blockchain.”
Consequently, that promoted a bullish trend, and the community reaction following the hearing had a positive effect on the crypto market — which was staggering at the time, likely due to China reiteration of it’s zero-tolerance of crypto, rumors of a ban in India and some mainstream banks prohibiting cryptocurrency purchases with their credit cards. After the SEC/CFTC showed their positive stance in regard to some crypto industries features, Bitcoin and Ethereum saw 20 percent growth in value, and the rest of the cryptocurrency market rallied into the green.
SEC rules that BTC and ETH are “not securities”
When: June 2018
Alleged reaction: Slightly bullish
The SEC’s approach to cryptocurrencies is still not crystal clear. However, at this point it becomes evident that, while the agency considers most ICOs to be securities, the two leading cryptos — Bitcoin (BTC) and Ethereum (ETH) — are not seen as such. That sentiment was recently voiced by Jay Clayton, the chair of the SEC, who declared that BTC is not a security because it acts as a replacement for sovereign currencies:
“Replace the dollar, the yen, the euro with Bitcoin. That type of currency is not a security.”
Soon after the news broke, Bitcoin’s price went from $7,525 up to $7,728 within 24 hours, showing a slight growth.
A couple of days after that, William Hinman, the director of the SEC’s division of corporation finance, claimed that Ethereum (ETH) isn’t a security either, putting an end to a months-long dilemma that could have potentially ended up with Ethereum’s 2014 ICO being outlawed:
“Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions[…] And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”
That signal was positive for ETH, meaning that it wouldn’t face any charges. Consequently, the coin’s price rose as much as 11 percent, up to $520.68.
The SEC reminds that exchanges should be registered with the agency
When: March 2018
Alleged reaction: Slightly bearish
In March 2018, the SEC issued a public warning aimed at crypto exchanges. The watchdog explicitly stated that platforms who trade “securities” — and the SEC deems many altcoins as such — “must register with the SEC as a national securities exchange or be exempt from registration.” The announcement read:
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as ‘exchanges,’ which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”
Hence, major crypto exchanges were urged to comply with the SEC’s regulations, entailing a strick Know Your Customer (KYC) and Anti-Money Laundering( ATL) approach, among other things — some major U.S.-based exchanges, like Coinbase, have since tried to register with the authority.
The news coincided with a noticeable downtrend in the market: For instance, BTC went down 8.6 percent from 24 hours earlier, losing its $10,000 support. However, the surge could have been initiated by other factors, such as rumours about an alleged Binance security breach that were spreading around the time.
Crypto mining hardware manufacturer Bitmain has reportedly secured China’s biggest technology company Tencent and Japan’s Softbank, Uber’s biggest shareholder, as investors in a pre-IPO financing round.
Chinese crypto giant Bitmain, commonly known for manufacturing bitcoin mining equipment and operating mining pools, is attracting interest from some of the world’s biggest companies and investors ahead of its initial public offering (IPO) on the Hong Kong Stock Exchange later this year.
Bitmain was in the process of securing a $1 billion round of financing in a round that, at closing, would value the firm at $15 billion.
According to a report by Chinese publication QQ, Bitmain completed the pre-IPO raise on Saturday in a round of financing that notably includes Chinese technology conglomerate Tencent with a market cap that rivals that of Facebook and Japan’s Softbank, a tech giant heavily invested in a number of tech ventures globally including its standing as Uber’s largest shareholder.
The participation of the two investors, in particular, underlines the growing mainstream appeal of the sector and the relevance of the industry’s biggest firm.
An array of ASIC mining chips developed by Bitmain.
The backing follows Bitmain’s robust revenues this year, raking in a profit of $1.1 billion during Q1 2018. Compare that to mainstream hardware giant Nvidia with a reported net Q1 net income of $1.2 billion and it’s easy to understand investors’ interest in Bitmain, which was valued at $12 billion before closing a $400 million round of financing in June. After closing its latest round to peg its value at $15 billion, Bitmain has seen a 16.5% increase in its overall valuation in less than 45 days.
The QQ report also confirmed that Bitmain has begun the process for its listing in Hong Kong, hiring China International Capital Corp (CICC) – China’s oldest investment bank – as its lead underwriter ahead of its anticipated IPO on the Hong Kong Stock Exchange (HKEX) in September. According to local media reports in China, insiders expect Bitmain to go public with a market cap between $30 billion and $40 billion before the turn of the year.
Bitmain has thrived in spite of China’s largely restrictive crypto industry policies since early 2017 and continues to make record profits in what is largely a bear market for cryptocurrencies.
Bitmain has diversified its own portfolio through major investments in U.S.-based crypto trading firm Circle and major internet web browser Opera. This week, Bitmain confirmed its intention to establish a $500 million cryptocurrency mining facility in a Texas town, a move that is expected to generate 400 new jobs. Bitmain has also moved established a new base in a 20,000 square-foot office space in Silicon Valley and is tripling its employee-count at a development center in Israel.
Bitmain, the world’s largest bitcoin mining firm, is preparing to open a new data center in Texas, external job postings show.
The China-based cryptocurrency company, which reportedly recorded $1.1 billion in profit during the first quarter, is currently looking for a project manager and data center site manager to staff a new plant in Rockdale, TX, a small town nestled an hour-and-a-half south of Waco.
The news was first reported by local media outlet KXAN, who said that residents are hopeful that the new bitcoin mining operation will bring hope to a region devastated by job cuts in the coal production and manufacturing industries.
In 2014, Aluminum manufacturer Alcoa shut down production at its Rockdale smelting plant, which had opened in 1952 and processed as much as 1.67 million pounds of aluminum per day.
Earlier this year, Dallas-based utility company Luminant shut down its coal-fired power plant in Rockdale, cutting approximately 450 jobs at the plant and a nearby coal mine.
Consequently, residents say that they are optimistic that Bitmain’s new data center will bring high-paying skilled jobs to the community.
“These are technical jobs, these are well-paid jobs,” said Rebecca Vasquez, chair of the local Chamber of Commerce, adding that she hopes the business will bring new homeowners to the area and increase its tax base.
However, as one unnamed cryptocurrency investment fund manager noted in the report, cryptocurrency mining industry operations tend to be “capital-heavy and human-light,” so it’s not clear how many long-term jobs the new data center will bring to the area.
Bitmain is also hiring staff in Chandler, AZ, as well as two cities in Washington — Malaga and Wenatchee — as it strengthens its growing foothold in the North American market.
The firm has also established a major data center in Quebec, which has a large surplus of electricity but has nevertheless had a complicated relationship with the cryptocurrency mining industry.
A congressional hearing before the U.S. House Committee on Agriculture today struck a positive tone towards the impact that cryptocurrency and digital assets can have for the economy and processes.
The hearing included academics, engineers, and entrepreneurs in the cryptocurrency industry. They included:
Mr. Joshua Fairfield, William Donald Bain Family Professor of Law, Washington and Lee University School of Law, Staunton, VA
Ms. Amber Baldet, Co-Founder and CEO, Clovyr, New York, NY
Mr. Scott Kupor, Managing Partner, Andreessen Horowitz, Menlo Park, CA
Mr. Daniel Gorfine, Director, LabCFTC and Chief Innovation Officer, CFTC, Washington, DC
The Honorable Gary Gensler, Senior Lecturer, MIT Sloan School of Management, Brooklandville, MD
Mr. Lowell Ness, Managing Partner, Perkins Coie LLP, Palo Alto, CA
Bitcoin’s Role in Alleged Russian Hacking of DNC Emails
The recent indictments of 12 Russia-linked hackers related to their alleged involvement in the 2016 U.S. elections was brought up. Bitcoin was mentioned as the means the hackers used to fund their activities and whether this helped hide their indentities.
However, committee members were informed that bitcoin’s public ledger allowed investigators to pinpoint the movement of funds much more easily than cash. The committee chairman, Michael Conaway, said, “As long as stupid criminals keep using bitcoin, that’d be great.”
Hearing More Technical and Detailed than Previous Ones
With the numerous subject matter experts on the panel, the discussion went into much more detail than others, like the ones at the SEC.
Amber Baldet made a good case for current blockchain technology as an early open framework built on open-source technology, much like the infrastructure of the Internet. In its early state currently, blockchain technology has the potential to grow into new, foundational technologies like the SMTP email protocol. Baldet thus recommended a sensible and moderate regulation.
Baldet said, “the committee can take a more proactive approach to regulation” as a means to support a blockchain becoming a global infrastructure, as the United States did with the internet. This is in contrast to “reactionary” regulations.
CFTC Representative Deeply Involved in the Technology, Makes Actionable Recommendations
The questions from some committee members did keep the common concerns over bitcoin’s price volatility and ICO scams. Gorfine, of the CFTC, conceded that there were a large amount of bad actors in the space and that upwards of 80% of the ICOs have gone bankrupt.
However, Daniel Gorfine stated that his work is focused very much on a “fintech primer”, which ultimately helps educate investors and regulators understand the technology and avoid scams. The lack of education is a large source of fraud in the industry for market participants, in addition to still-murky regulations.
Gary Gensler Encourages Quicker Regulatory Decisions to Keep Innovation in the United States
Gary Gensler, Senior Lecturer at the MIT Sloan School of Management, encouraged speeding up decisions about sensible regulations in order to keep innovators in the United States.
Gensler believes that strict or unclear regulations could move innovation and economic benefits offshore. If other countries get ahead of the United States in the industry, this could be a concern. History from other sectors has shown that once innovators leave the country, it’s more difficult to bring them back once the regulatory decisions are made.
Conclusion: Concerns over Centralization
Chairman Conaway concluded that “the hearing was very elucidating for them on different issues.”
However, a recurring concern throughout the hearing is the centralization of capital and mining in bitcoin. One problem is that only a few wallets contain over 90% of all circulating bitcoin. Another point is that the largest miners of bitcoin are in China and Russia, both of which make up about 50% of mining power. Bitmain is rapidly expanding its business globally.
Overall, it is encouraging to see that the committee brought experts in private industry and academics to inform regulators on the complexities of blockchain technologies. The group appeared to synergize their specialties in the industry. The committee members could do well to bring more experts on board in the future, since many still appear to be learning about the technologies.
San-Francisco-based bank Wells Fargo has outlined a patent for a tokenization system that would protect data, according to a filing published by the U.S. Patent and Trademark Office (USPTO) July 17.
The newly published application details a system in which any type of data element — whether a document, graphic, or database value — could be located, accessed, and protected by means of tokenization.
Tokenization, as the patent filing outlines, uses encryption methods to process an originally unrestricted data element into a corresponding restricted token that can subsequently only be retrieved — or ‘detokenized’ — by a specified user. The system harnesses cryptography to bind specific values to data under an authenticated digital signature.
The tokenized system can thus be used to both control access and confidentiality, authenticate data origins, and maintain data integrity by detecting any undue modifications to an element.
Wells Fargo explains that tokenization can be used to protect data “even when it is stored in a publically accessible environment, such as the cloud, within a blockchain…in a flexible way that is file and data element neutral”:
“Unlike the limited, anonymous signatures supported by existing systems, this tokenization manifest supports single signers, multiple signers, or co-signers to store information publicly without loss of confidentiality of any sensitive content.”
The proposed system would furthermore flexibly allow content owners or managers to select a desired output for tokenization — which can be used for any file in part or in its entirety — and select how it will be manifest for restricted users, e.g. through blurring, randomized text, or blacking out.
Just last month, Jeremy Allaire, Co-Founder & CEO of payments company Circle spoke at MoneyConf Dublin of an unprecedented “crypto-revolution,” suggesting that global society is “at the beginning of a tokenization of everything” that will extend to “every form of value storage and public record.”
While evidently embracing the technology that underlies cryptocurrencies for its own purposes, Wells Fargo has recently moved to prohibit its customers from purchasing crypto using credit cards issued by the bank due to perceived investment risks.
The bank was nonetheless an early pioneer of the first-of-its-kind international freight shipment to China back in 2016, in what was the world’s first reported interbank trade using a blockchain system.
The cryptocurrency industries largest crypto mining company, Bitmain, just opened their new office in Silicon Valley ahead of its planned Initial Public Offering (IPO) later in the year.
According to the Silicon Valley Business Journal, the China based cryptocurrency mining hardware manufacturer moved into a 20,000 square foot office space in downtown San Jose California. The company filled the last vacancy of the city’s Riverpark Towers office building, which is known to be the hub of tech startups like Cohesity, Okta, and WeWork.
The expansion of Bitmain’s company is not surprising after the firm was recently valued at over $12 billion following the end of last month’s $400 million funding round. This makes it the most valuable cryptocurrency company in the world as well as the most valuable privately held tech startup.
Cryptocurrency companies have centered themselves around the same geographic locations as other tech industries. This recent move will better position Bitmain to expand and manage its digital empire. The company has been targeting expansion into the United States and Canada due to the industry’s uncertain future in China. The company has currently opened mining centers in both Washington state and Québec , Canada.
Bitmain has started investing in other tech startups, so it’s moved to Silicon Valley would naturally benefit its investment capital arm of the company.
The crypto mining company recently led a $110 million funding round for well renowned cryptocurrency trading desk, exchange, and investing app Circle. Bitmain has also announced that they plan on creating a USD pegged stablecoin in the near future.
Just this week, Bitmain also funded a round for the launch startup Block.one (creator of EOS cryptocurrency), alongside PayPal cofounder Peter Theil. The investment capital size was not announced publicly.
Hundreds of new cryptocurrencies enter the market every single month. Not all of them will survive the ultra-competitive cryptocurrency niche. Most altcoins will never see the light of day or inherit anything close to resembling mass adoption. From countless amounts of coins that have come out this year, there are only a few altcoins that will see a 100x increase in their valuation.
Before we move forward, always remember to do your own due diligence above anything you read online or hear on YouTube. The list below does not represent financial advice nor are we financial advisors.
As a rule of thumb, projects that solve real-world problems get more attention and have higher chances of success. These are simply the top 10 altcoins we have personally investigated which represent a high chance of 100Xing profit in the years to come and solve real-world problems.
Don’t take our 100X prediction as gospel or fact. As always, DYOR!
With that said, let’s move on…
The crypto marketplace underwent a huge correction after bitcoin’s value shot up to $20k USD back in 2017. By early 2018, many coins regained some of their valuations and the market experienced a small bull run. However, the list below has the best chance of multiplying your returns when the next bull run starts.
NOTE: Not all of these coins will hit the 100x mark. Some of them may go as far as 10x or 20x and stagnate. Some may fail to cross 2x while a few others may even lose their current value. Be aware of the volatile nature within the cryptocurrency market before investing any amount of your hard earned income.
Without further ado, here are our Top 10 Altcoin Candidates who have the potential to 100X their current price within the years to follow.
#10 – ICON (ICX)
ICON wants to build the world biggest decentralized network. They are doing this by enabling blockchains to interact with each other via smart contracts. The project held their ICO at the end of 2017 and the team released a desktop wallet, ICONex. The wallet supports their native coin ICON, ETH and other ERC20 tokens. There are plans to expand the wallet support to Android and iOS in the near future.
The project has deployed ERC20 tokens for now. These will be converted to ICX tokens once their Mainnet becomes active. ICON has already put most of their technological pieces in order and is now focusing on the business aspect of their company.
Armed with an excellent real-world application, ICON is bound to improve its valuation in the coming months.
Kyber is a fantastic cryptocurrency project that is undervalued in its pricing.
Based on Ethereum protocol, Kyber Network (KNC) facilitates the immediate exchange of digital assets like tokens and coins with the fiat currency like USD or EUR. It is a decentralized exchange with a real-world connection. Kyber is one project that went public with the support from of Vitalik Buterin, the co-founder of Ethereum.
Most cryptocurrency exchanges suffer from a liquidity problem. Centralized exchanges are often prime targets for hack attacks. There are few exchanges that can convert your cash into coins or vice versa but the cost of the conversion is usually very high.
Decentralized Exchanges (DE) also suffer from liquidity problems because a majority of their transactions are of low value.
Kyber’s model ensures Decentralized Exchanges have liquidity at all times. And since the transactions do not happen on the blockchain, the processing is almost instantaneous.
Kyber’s coin KNC is deflationary in nature because, after each transaction, a certain number of coins are taken out of supply. Over time, the supply of coins will reduce and its value will appreciate. Since the network serves a real-world need, its value will go up as their adoption increases.
Compared to other exchanges, Kyber is currently undervalued and its proposition makes it attractive, especially as the number of cryptocurrencies increases over time.
Vibe jumped 400% in value within 24 hours a few months ago and we believe this may happen once again in the future. It is the native currency of a blockchain platform called the Vibehub. Vibehub started as a music-centric application but now it has become a major virtual reality application. The platform provides virtual space to people enabling them to take part in events around the world. Using the power of Augmented Reality, you can now participate in meetings, live events like sports, concerts and even meet new people, without any geographic restrictions.
The platform is based on the Ethereum blockchain and Vibe coins are used to pay for services rendered. Vibehub allows artists and teachers to use virtual reality to reach people across the globe. It plans to generate revenue from the augmented and virtual reality content.
Based on its usefulness and real-world application, as well as the roadmap the team has announced, this coin will most likely climb up the charts again and create another record for itself.
VeChain is a blockchain based platform that provides tamper proof information around products to specific merchants. It brings a new level of transparency to supply chain management, business operations, etc. Based on a decentralized architecture, the platform aims to become a one-point reference for all stakeholders in the supply chain system.
The VeChain Foundation started off as a supply chain company that produced RFID tags. They later decided to take advantage of the immutable nature of blockchain platform and combine it with the in-house knowledge of RFIDs to create an Ethereum like Enterprise DApp specifically to secure the supply chains systems.
VeChain’s in-house smart chip helps track the movement of goods throughout the product lifecycle and makes it easy for the management to protect their supply chain against tampering and counterfeit goods.
By building a more trusting blockchain tracking system, VeChain has helped businesses…
Track their products more effectively through simplified product tracking
Their smart chip technology can assist businesses who need current and accurate information on each product which also improves quality control.
Identify logistical redundancies
Protect against counterfeit goods by reverification at each node.
VeChain platform uses two native coins, VeChain Tokens [VET] and THOR power to maintain the platform. The priority of processing will be decided based on the amount of VET a business holds.
VeChain boasts of solid B2B tools and is an excellent cryptocurrency candidate for increasingly steady price movement.
While there are hundreds of bitcoin alternatives whose primary function is that of a currency, Ethereum became the first platform that fully leveraged the power of blockchain technology.
It became the platform to emulate, and a place to develop your own projects using DApps. As a result, there are hundreds of new projects and their native tokens in circulation today.
QuantStamp is the security auditing protocol running on the Etherum platform. Its primary focus is security checks on the Ethereum based smart contracts before projects hit the market.
The attacks on DAO and Parity wallet bugs are the type of incidents that can be avoided by using a service like QuantStamp. With a massive increase in the number of smart contracts being written, this service will be in great demand for the foreseeable future.
Based on the Walimai technology, WaBi is a cryptocurrency that is used as an anti-counterfeit system.
Walimai technology makes it possible to create a digital representation of each physical item produced by the manufacturer. The consumers can verify the authenticity of these products and purchase them by using Wabi coins. The Wabi blockchain is being used to protect daily consumables like food items, alcohol, pharmaceuticals, etc. Although the scope of this project is limited, the growth potential for this cryptocurrency is enormous as its first target market was China. After succeeding in countering fake goods within the country, WaBi is planning to move to other Asian countries in the future.
Simple Token allows any business to create their own digital currency by using Ethereum’s public sidechain solution. Businesses can use the OpenST protocol to create branded tokens without investing in the development of its own blockchain.
The key idea behind the project is to take away all the expensive development issues and provide the advantages of blockchain technology in a more hassle-free manner.
Their OpenST protocol makes it easy for Ethereum’s sidechain solutions to scale.
The relationship between ETH and OST is touted to be just like NXT and ARDR. This coin is expected to skyrocket within the foreseeable future.
DragonChain was originally created by Disney as a private blockchain. In 2016, it was released as an open source software used to secure business databases and execute smart contracts without any technical expertise. This platform makes it easy for businesses to incorporate blockchain into their applications and enjoy the benefits of this innovative technology. Their business model is ‘blockchain-as-a-service’ so that anyone can implement the technology without the technical know-how.
DragonChain can be considered as an incubator for blockchain based projects. Businesses can even run their ICOs on the platform. With a single KYC, US investors can take part in any of the ICOs within the DragonChain network.
The project incentivizes people to hold their DRGN coins in a private wallet and not use them in order to obtain a higher slumber score. A high slumber score gives them early access to exciting ICOs in the DragonChain marketplace. The reduced number of coins in the system is bound exponentially excel the price upward.
This coin is best to treated as a long-term hold since it houses over 200 active projects/businesses that can explode at any moment. With a solid management and development team, don’t be surprised if it quickly becomes the next 100x multiplier. This cryptocurrency probably one of the best long-term hold from our top 10 picks.
Purchase DRGN on Kucoin
#2 – Oyster Pearl (PRL)
Oyster Pearl is a second generation blockchain working towards empowering conventional applications with blockchain technology. Advertising on the internet has gotten a little out of control. Flashing banners and predatory, malicious, adware ads are making it hard for people to pay attention to the content they chose to read. Some readers switched to ad-blockers, however to counter this, the content providers started to deploy ad-block detectors to ensure they can still show a few ads in order to pay the bills.
Oyster Pearl wants to clean up the intrusive ads and still ensure content creators have a viable revenue model. PRL was built upon the IOTA Tangle, that allows the website visitor’s computer to contribute a small amount of hashing power instead of showing them an ad. This hash power is used to confirm the network transactions and gives the web host/ content creator some income.
As the internet usage and web economy grow, PRL will grow along with them which is why they are a good buy at this time.
Among all the coins in our list, Deep Brain Chain (DBC) has the highest chance for a massive moon-shot. In fact, if you are reading this article a few months later, it has probably crossed the 100x mark. DBC is a NEO based smart contract token and is traded on the Kucoin exchange. It is also expected to be on Houbi shortly. DBC provides a low cost, decentralized, private AI computing platform. It pools computing resources from people around the world to create a massive platform required to meet the AI’s computational needs.
There has been a big growth in AI related start-ups in the last five years. The value of this market is over 100 Billion USD. Hardware requirements typically eat up 70% of any AI business and this is where DBC comes into play by reducing the cost of these inflated hardware requirements.
The project has funding from NEO and has the first mover advantage within the domain. It is filled with top AI scientists and has an incredible chance and increasing its market coin valuation well over 100X.
Even though we’ve done our research, that still doesn’t mean you get out of doing yours. We’ll continue to update these coins as they evolve.
Make sure to check them out on our Live Coin Watch located here to view their previous and current valuations, latest twitter notifications, latest developments, announcements, and much more.
I think if there’s one thing that we can all agree on it’s that fees suck!
With that said, when it comes to the world of cryptocurrency exchanges, fees really aren’t all that bad. Especially when you compare them to your typical bank fees, smart phone fees, cable fees, and the list goes on. They’re not even close to the fees that you would pay to a traditional stock exchange brokerage. These fees are simply the cost of doing business and an inherently low cost at that.
Even though exchange fees are nominal, you’d rather save as much as possible, right? That way you can spend it on more important items like a drone selfie camera or glow-in-the-dark underwear. You know….the stuff that really matters. 😉
Before we dive into these “low fee” exchanges, let’s take into consideration what type of trader you are. You can generally categorize yourself into three types: the investor, swing trader, or day trader.
If you fall into the first 2 categories you really have no reason to sweat exchange fees. The difference between 0.10% and 0.25% is almost microscopic when trading once a month or twice a week. You’re really not producing enough trades for these fees to really make a difference.
Now if you’re a masochist like myself, and have chosen the world of day trading, then these fees will quickly add up. They do actually matter when it comes down to your bottom line.
With that said, let’s have a closer look at some of these low fee exchanges…
Binance is the largest cryptocurrency exchange by trading volume. It didn’t get there by some stroke of luck. The combination of their referral program, intuitive interface, amazing community, and you guessed it… low trading fees, put them at the top of the heap. At 0.10% on both buy and sell orders, it just doesn’t get any cheaper than this (well other than free I suppose).
Considering their popularity, vast array of altcoins to trade, their top-notch security protocol, as well as customer support, this is my number one place to go for low fee crypto trading.
If you want a more detailed review on Binance, I highly recommend you check out our article located here.
The Coinbase owned exchanged is one of the most popular cryptocurrency exchanges in the world as of December 2017. You can place order that will immediately get filled for as low as 0.10% (you would be considered a taker). Limit orders are free (you’re considered a maker).
That’s right, I said it, FREE! However, this all depends on if you’re a maker or taker on the order book. If you’re not familiar with maker and taker fees, let me explain. If so, then just skip past the highlighted section.
In essence, a maker fee is when a trader places a bid on a coin and waits to get it fulfilled by another trader within the exchanges order book. A taker fee is where a trader immediately accepts the highest bid (either buy or sell order) within an exchanges order book.
If you’re still confused, I highly recommend you check out our article here for a more detailed explanation.
With GDAX’s low to free fee structure, there is one caveat to trading within the exchange. You’ll only be able to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
This may be a deal-breaker to some, while others that are new to the trading scene may only care to get started with the select few pairs. Either way, the fees are some of the lowest in the industry so this may be a great place to get your feet wet when starting out on your cryptocurrency trading journey.
While HitBTC is not one the most popular exchanges, it is one of the cheapest. HitBTC has also been around for a very long time (since 2013 to be exact) thus has a long-standing track record.
Like Binance, HitBTC only charges 0.10% on both buy and sell orders. I wouldn’t necessarily recommend this exchange when transferring your countries fiat over to crypto, however they are a great cryptocurrency trading exchange for those looking for a beginner friendly solution.
For a more detailed review on this exchange, please check out our review here. We give you all the details on what makes this exchange stand out from the crowd.
This UK based exchange charges a little more than the two mentioned above, however is still relatively cheap when compared to the average fee of most exchanges in the market today.
CEX.io charges a 0.20% fee across-the-board (both maker and taker fees). This is still 0.05% under the standard trading fee for most exchanges which is 0.25%.
This trading platform has also been around or quite some time. They were established back in 2013 as one of the first cloud mining providers. Since then, they’ve become a multifunctional cryptocurrency exchange with millions of users worldwide.
Bitfinex is also fairly cheap when compared to the standard the structure of most cryptocurrency exchanges. They offer 0.10% maker fees and 0.20% taker fees.
If you’re not familiar with maker and taker fees, let me explain…
They also offer a tiered fee structure. This means that their maker and taker fees are lower the more you trade, however don’t get too excited. The lower tiers don’t start until you start trading $500,000 or more.
NOTE: I don’t recommend this exchange unless you’re an experienced trader with over a year of experience. Margin trading can be a dangerous for novice traders. I only recommend traders with at least a years’ worth of experience to potentially dabble in margin trading.
For International Traders
Any of the exchanges mentioned above will work for international traders (meaning you don’t live in the US), however if you’re looking for a more local exchange to support, you may find the exchanges below more accommodating.
Austrailia – CoinJar and Coinspot are two low fee exchanges that are located “down under”.
Europe – CEX.io is mentioned above and is a great low fee exchange, however if you’re looking for another alternative Bitpanda has received a lot of great reviews as well.
China/Japan – Huobi is the 3rd largest exchange in the world by trading volume. This is the most widely accepted exchange among easterners.
Now Choose One and Start Trading!
There you have it folks! The lowest fee crypto exchanges to date. I’ll continue to keep this article updated as newer “low fee” exchanges are released.
Feel free to chime in to the comments below and let me know what other cheap exchanges you’ve used, so we can add them to the list.
Now get out there and start trading. Make sure to buy me something nice with all that money I saved you on fees. 😉
Over the last few years cryptocurrency has not only gained a lot of attention in the media, but also more trust and curiosity from investors, banks, governments, and corporations. Even though it was initially met with cynicism, more and more investors and companies are moving toward the utilization of cryptocurrency.
This digital currency seems to be much more fitting for those of us living in the digital age as opposed to our antiquated fiat currency. When compared to the longevity of fiat, the 9 years that Bitcoin has been active seems like a blip on the radar. Regardless of what your stance is on the cryptocurrency, the blockchain technology behind it is here to stay.
It’s also much more likely that cryptocurrency has solidified its position as an international currency over any other previous currency in history. It should not be taken lightly as an asset and will surely be around a lot longer than most have predicted.
One of the key characteristics of the cryptocurrency market is its volatility in price. Have you ever wondered why the price of cryptocurrency, whether it Bitcoin or Ethereum, tend to fluctuate so much? We’re here to explore those aspects of volatility and what drives market prices one way or another.
This characteristic of volatility is easy to understand. Each time the government passes a law or publishes statements regarding how to regulate cryptocurrency, the price of the asset is bound to mirror an effect in price. For instance, heavy regulation tends to push people into selling their coins, thereby causing a downward pressure on the price.
Even new regulations that aren’t specific to cryptocurrency, but adhere to a general financial action by the government, may also be translated into fluctuations.
An example of this could be a financial crisis suffered on Wall Street which would inherently affect the crypto world as well. Whether it would positively or negatively impact the crypto market depends on many different variables
There is an inherent anonymity behind cryptocurrency. This has been the primary reason why the currency has garnered so much popularity. With recent popularity, more and more governments are pushing to impose rules to end anonymity and increase transparency as well as regulation. If this occurs, cryptocurrency prices are bound to be affected.
User trust is an important factor in determining the price of any financial asset. By trust, we mean whether or not individuals believe that the currency will be able to sustain its purchasing power in the future.
As an example….
Imagine that you invested in Ethereum, but as the months pass you expect the value of your investment to likely decrease in the nearby future. This could be due to media, government regulations, or a host of other factors. These outside forces will more than likely reduce the trust you have with your particular currency.
So what do you do?
If you’re a new trader or investor the chances are high that you’ll likely sell. You might make this choice because you don’t trust that your shares of Ethereum will have the same value it currently holds in the future.
If there are a lot more people like you who sell their investment today due to this news, they will also garner a “lack of trust” in Ethereum or even cryptocurrency as a whole. You will inherently drive the price of the currency down, thereby playing an integral part in the currency’s inability to preserve its future purchasing power.
Trust is extremely valuable within the crypto sphere. Always remain calm and headstrong before you make any decision to sell, as more times than not, the market will change and the price of your sold cryptocurrency will rise well above the market price you purchased at. Many of us call this “seller’s remorse”.
Trust was one of the reasons Bitcoin was able to rise to an all-time high back in December 2017 to 20k. Another major reason why cryptocurrency is valued at such a high price is due to the fact that it cannot be hacked due to the blockchain technology in which it operates on. However, be very aware that this still doesn’t mean that hackers won’t be able to hack an exchange and obtain access to your online wallet. Fortunately, most reputable crypto exchanges are insured against these types of scenarios. Most users are compensated for their losses.
Also note that most of the Top 10 cryptocurrencies are expected to exponentially gain value over time. Many newer cryptocurrencies have exponentially increased their value within a year, so keep that in mind before you start to panic sell.
Mass Adoption of Cryptocurrency
Cryptocurrency once had a humble beginning. While they are valued at a much higher price today than they were several years ago, this was not always the case. What brought this onset of new found value? The rising demand and mass adoption of blockchain technology has made a profound affect on the value of cryptocurrency. The viral exposure on social media, news, TV shows, movies, as well as word of mouth also inherently relay value to the digital coin.
Cryptocurrency has been gaining momentum since its inception. This coupled with the fact that more technologically advanced countries like China, Japan, and South Korea are starting to utilize it within their everyday commerce.
More and more people every year begin to understand why cryptocurrency is such a beneficial investment. They realize how much of a lucrative opportunity it is and as a result, the popularity of cryptocurrency, especially Bitcoin, has gone through the roof. The law of supply and demand dictates, when demand increases while the supply stays constant, the price will inevitably rise.
Remember, almost all cryptocurrencies are available in a limited amount. When there is an increase in demand, it’s soon followed by mass adoption. While more investors enter the market, the price further increases. This trend is expected to continue as cryptocurrency is still a hot topic in most countries.
Speculators exist in every facet of the financial market, and cryptocurrency is no different. Speculation regarding the future value of any particular coin can be derived from the news or other venues like social media and online forums.
For instance, if the liquidity of a particular cryptocurrency were to increase, speculators would deduce that more people are likely to buy. This would translate to an increase in prices. This speculation could have some investors purchasing a particular coin today in order to sell it tomorrow at a profit. This single action is what would drive the prices upward, thus creating a “buying frenzy”.
On the other hand, news regarding how much more effective another cryptocurrency is, compared to say Bitcoin, can lead to a decrease in Bitcoin’s price before the newer currency even hits the market.
Why? Speculation my friend, speculation.
Speculators will expect the new cryptocurrency to drive the price down. Traders will begin selling their investment before its release in order to get a jumpstart on the market.
Speculators might be responsible for the initial decrease in prices, however “the herd” (trend followers) would cause it to exacerbate. Not everyone understands what they are doing. If everyone else is selling their investment, “the herd” will follow. This mentality is what governs a further decrease in price. This event can also be referred to as “panic selling”.
It’s hard for any financial asset to avoid price volatility caused by speculators. However, since cryptocurrency is largely unregulated and can inevitably deliver its investors high returns, the effects of speculators are felt much more prominently.
As long as the stock market has been active, news and other media outlets have always played a major role in price fluctuations. This is also a common occurrence with cryptocurrency, however it can generally be more pronounced.
News regarding crypto related bankruptcies, hacks on crypto exchanges, government regulations, delays in service, issues with crypto technologies, can cause an immediate disruption with any particular cryptocurrency.
Media influence can sometimes reflect a more negative “opinion” on some less reputable media outlets. These FUD syndications may release false information in order to decrease the value of a particular cryptocurrency. Negative news which is found to be primarily false is commonly referred to as FUD (Fear, Uncertainty, and Doubt). Be very careful when falling into this inevitable trap. Always do your own research (DYOR) and check other credible use sources for comparison.
The Whale Effect
If you’re not familiar with the term “whales”, you’re obviously very new to any form of trading or investing. That’s okay, you’re here to learn right?
The term is commonly referred to as an individual (or group e.g. corporation) who buys or sells large amounts of cryptocurrency, thus greatly influencing the trend of that particular market. These are also referred to as “market makers” and can be found within any trading marketplace (forex and stocks).
As you can imagine, these individuals maintain a lot of power within the market. These titans of the industry may sell a large amount of cryptocurrency, only to take advantage of other “panic sellers” who will inevitably liquidate their digital asset. Once the time is right, they’ll buy back that currency at a lower rate. This is standard protocol for these types of traders.
There’s nothing that you can do to stop this from happening other than recognizing when it’s happening and ride the trend which the whales are currently dictating. Having a fundamental understanding of technical analysis can also help you spot these trends and take advantage of them before they happen.
There are many factors that determine the price of cryptocurrency. The ones mentioned above are just a few of the main culprits. Remember, not only does each factor play a significant role in determining the price of a cryptocurrency, but two or more can wreak havoc.
Just be careful that you’re not on the other side of these renegade dips. Stay current with daily crypto news. Make sure to follow your cryptocurrency investment on Twitter in order to help you keep an up to the minute pulse on the latest developments.
Overall, most of the Top 10 cryptocurrencies located here will increase in price over time. This is true even after weekly (or sometimes monthly) volatility in price is experienced. Understanding how these factors work will allow you to be in a much better position to realize when to buy or sell your digital asset. Understanding how this process works, along with personal experience, will give you a fundamental edge over the so called “herd”.
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