Market Review 08/02/18 2018-04-13T04:17:05+00:00

Market Review 08/02/18

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The UK starts banning the purchase of cryptocurrencies with credit cards
The UK is following in the footsteps of the US, and some banks are now introducing a ban of purchasing Bitcoin with your credit card. Lloyds Bank, Halifax and Bank of Scotland are among those who have banned the practice.
The fact that it’s possible to gamble with credit cards but not buy cryptocurrency with them hints that financial institutions are not trying to protect people from losing their money but are more interested in controlling how and when cryptocurrencies can be used before it becomes widespread.
 
China tightens its ban on cryptocurrencies
China’s official Xinhua news agency quoted the People’s Bank of China on Monday afternoon as saying it would tighten regulations on domestic investors’ participation in overseas transactions of ICOs and virtual currencies
ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions.
 
The use of VPN is already very widespread in China to go around the “Great Firewall of China” so those increased regulations might not have the intended effects.
 
The SEC hearing about cryptocurrency
The cryptocurrency market is going back up after Monday’s drop. This is partly due to the SEC/CFTC hearing about cryptocurrencies. Overall the feeling was bullish for cryptocurrencies as the SEC and CFTC clearly stated they didn’t want to hinder the underlying technological breakthroughs, but very cautious on the ICO and tokens front. Mr. Clayton went on to say that all ICOs he has seen are securities and that most of them have broken securities law as none have registered with the SEC but still promoted to the public.
 
It will be interesting to see how the ICO market adjusts but we have already seen multiple projects like Nucleus.Vision, Odyssey Protocol and Refereum cancelling their public sale plans and instead raising everything in a private sale. Perhaps the era of private rounds coupled to airdrop has already begun. Though, as we have seen with Dfinity’s $61m “donation” by Polychain Capital and Andreesen Horowitz, a private placement in a foundation can look a bit out of place.
 
Another subject that will greatly evolve is the bounty campaign, usually initiated on Bitcointalk and involves a grand scale referral marketing. Though, Mr. Clayton suggested: “As I have stated previously, these market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.” which means being paid for tweets and posts that act as endorsements without disclosing payment in tokens is subject to important fines.
 
2018 should be a very interesting year for cryptocurrencies and tokens!
 
Obscure crypto E-Coin massive gains
E-Coin gains over 4000% of market value to reach 1.5 billion market cap Tuesday afternoon, but only has 106 000$ of trading volume for the day. This might be due to one investor placing a large order on the coin, completely upending the market.
It goes to show the obvious flaws of Coinmarketcap.com as a random coin can easily reach the top 50 and spark FOMO from unaware buyers.
 
It’s a real paradise for Pump & Dump groups!
 
Market Recovers to $400 Billion
On Wednesday, the market switched to green as all cryptos showed around 20% gains for the day. On Thursday, the gains are slower, but the market finally climbed back to 400 billion market cap. Bitcoin Cash is leading the climb with gains of over 20% at the time of writing.
 
This once again goes to show how volatile and reactive the cryptocurrency market is to bad news, and how quickly it is to adjust afterwards.
 
Happy hodling!
 
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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.
 

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