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U.S. SEC Again Delays Bitcoin ETF Proposals

Over the past week, the U.S. SEC delayed Bitcoin ETF proposal it had on the table, Binance CEO CZ labelled reports that the exchange had suffered a hack involving user KYC data as “FUD”, commission-free trading app Robinhood got a thumbs up from UK regulators and Coinbase quietly delisted privacy coin Zcash from its UK platform.

CZ Plays Down KYC Data Hacking Rumours

Security has been a touchy subject for popular crypto exchange Binance, following a hack in May that resulted in a loss of 7,000 BTC from the company’s hot wallet. There are now reports, emanating from an anonymous Telegram user, that the company has lost user data – including KYC documents such as passport information – in a fresh hack. Various Binance representatives, including CZ, have been quick to distinguish the rumours, labelling the white hat hacker’s claims as ‘inconsistent’ and ‘FUD’ claiming leaked images don’t match their records.

Charlie Lee Rejects Litecoin Abandonment Claims

Following on from this week’s much anticipated ‘halving event’, Litecoin founder Charlie Lee has taken to Twitter to address rumours around the coin’s lack of developer activity. In his tweets Lee provided justification for the low number of Github commits, including the use of personal branches for core development rather than the master branch, and assured his followers that development work is ongoing. Litecoin is currently at $87 following a high of $145 set in June.

Dharma Pauses New Deposits as Funds Slip out of DeFi Ecosystems

Ethereum’s decentralised finance (DeFi) ecosystem, which has helped drive public enthusiasm while the network undergoes its transition to Ethereum 2.0, appears to be experiencing some challenges. Firstly, San Francisco-based lending platform Dharma has suspended new deposits and loans following a period of sustained outflows.

No new loans have originated from the protocol since late July. Further, the amount of ETH locked in MakerDAO has hit its lowest levels since November. Maker users recently approved increasing the stability fee to 19.5% following issues with maintaining its stablecoin DAI’s $1 peg.

Can Alts Fight Back Against BTC Dominance?

This week, Bitcoin dominance over altcoins hit more than 71% – a level unprecedented since December 2017, following which alts began a famous, though ultimately unsustainable, rally. Endless rivers of red on Binance, countless negative news headlines, despondent crypto traders on twitter…it appears there’s little cause for optimism when it comes to altcoin investing. Yet, despite the bearish overtones one may be surprised to learn that the combined market cap of altcoins has actually increased since the December cycle low – and quite significantly.

On 15 December, as Bitcoin crashed to its low of $3200, altcoins came tumbling with it, hitting a combined low of $38 billion. Since that point, Bitcoin has gone from strength to strength, reaching a high of $13,900 and currently in consolidation at around $11,500. The year hasn’t been quite so kind on altcoins, with no less than 15 days where the combined market cap has fallen 5% or more from the previous day’s close. Yet, as it stands the total alts market commands a valuation of $87.8 billion – more than double December’s low.

Amid bearish sentiment and apparent selling pressure on altcoins, where has this growth come from? The answer is quite simple. The alts market is continually widening, with new projects being listed for public trading each month.

These projects have attracted new money into the space, while existing money interchanges between the days’ winners and losers across various exchanges. The total market funds therefore are distributed over a greater number of projects, giving the appearance that the combined market is bleeding to new lows.

So as the money seeps ever more thinly across the alts space, which projects have been the biggest beneficiaries, and which have lost out?

The bulk of ‘fresh money’ has come from new projects, including:

  • Algorand (ALGO) – $2.2bn (according to Binance)
  • LEO (LEO) – $1.29bn
  • Cosmos (ATOM) – $650m
  • BitTorrent (BTT) – $60m
  • Matic (MATIC) – $56m
  • Grin (GRIN) – $50m

Among existing listed projects, several have had stellar returns against a difficult market backdrop. The biggest winners have included:

  • Chainlink (LINK) – up 740% YTD
  • Binance (BNB) – up 405% YTD
  • Ren (REN) – up 460% YTD

Despite many projects suffering a torrid 2018, many projects have suffered further losses in 2019. The biggest losers have included:

  • Polymath (POLY) – down 68% YTD
  • Stratis (STRAT) – down 59% YTD
  • Zilliqa (ZIL) – down 53% YTD

What does all this mean? In the simplest terms, it shows that Bitcoin dominance has increased despite several high-profile projects entering the market and a handful of outliers achieving the sort of gains normally reserved for bull markets.

The casualties in this scenario are the scores of once-popular projects that have seen their market caps bleed away amid negative alt sentiment. If alts are to reclaim market share against Bitcoin, a new flow of retail money will likely be necessary to breathe life into the market.

As things stand, don’t hold your breath for a repeat of December 2017.

Tweets of the Week

The Block’s Larry Cermak offers a cynical recollection of the 2017 ICO boom:

Crypto Cronkite sums up the frustrations involved in trading cryptocurrencies:

Naval offers some cogent startup advice. Does this same principle apply to crypto projects?

What do you think?

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Written by Marjorie Contreras

I Love math & how math will help evolvable the new technology. After graduating as Engineer, I start learning about cryptography & blockchain programs. In order to perfect my skills and explore my passion for the blockchain industry, I have been working with many new startups which gave me new exposure in blockchain marketing and startup management.I am eager to join the next companies that I believe in and help them grow. Fin-Tech is where I am stationed at the moment. When I feel that I will be ready, I will move on to other industries and implement disruptive technologies over there so that out-dated systems and ideas will die out and these particular industries shall rise and will give to the community the best that they can present, create and implement.

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