Alte.Capital — Weekly what changed in crypto — 22–29 January 2018

Our “Weekly what changed in crypto” letter is ready. We are dedicating it to share the most important stuff according to us we’ve seen previous week in the crypto world.

Enjoy it every Monday morning!

Whole week major drivers:

Last week we could see declining costs of transactions across all major coins. Also a number of transactions were falling. E.g. in Ethereum drop in a number of transactions was biggest since the beginning of network. We think there are three reasons for that:

  • Prices stability
  • We see increasing popularity of new generation of decentralized exchanges. For example, https://idex.market has added over 18,000 new users in the last three weeks. New decentralized exchanges (DEX) have better code optimizations than current solutions. Resulting in fewer on-chain transactions compared to previous DEX generations.
  • Fee for small withdraws from some exchanges (for example Binance) is becoming quite big, so users are reducing activity around moving coins between exchanges.

Price action

It was narrowly mixed week for main cryptos. Bitcoin and Ripple were down and Ethereum and Stellar ended up much higher.

7-day change thanks to https://cryptomaps.org/

This week ended with capitalization about $572,462,000,000. Almost same as the week before.

22–29 January 2018 market capitalization — https://coinmarketcap.com

Further, since Thursday we can observe rising ration between BTC and other coins. For example, BTC/ETH ratio passed 0.1 Btc. So lots of BTC started to flow to other coins. We think it’s the tipping point for BTC/ETH ratio. Currently, BTC has about 33% market share and Ethereum reached about 20% market share.

Most important events

Coincheck hack and NEM stolen

Hackers have stolen roughly 58 billion yen ($532.6 million) from Japanese crypto exchange Coincheck Inc. They gained access to private keys for exchange hot wallet and sent all coins to hackers wallet. There was about 30% price drop for NEM during the weekend, but later price bounced back to almost same price as before hack. We think it will be very hard for hackers to benefit from this stealing.

  • Volume for NEM is about 60 million dollars (according to coinmarketcap.com)
  • Top 5 exchanges where NEM is traded accounts for most volume
  • Stolen NEM’s can be easy traced on blockchain

Robinhood trading app adds Bitcoin and Ethereum

Starting in February, Robinhood (no-cost stock trading app) will allow users to trade Bitcoin and Ethereum with no fees. The company’s intention is to use the zero-fee cryptocurrency trading feature as a “loss-leader”, allowing it to bring more traders onto its platform, which can already boast more than 3 mln users.

First cryptocurrency rating report

Financial rating agency Weiss has released its much-hyped cryptocurrency rating report. The eagerly-anticipated report rates 74 of the most popular cryptocurrencies on the market, scoring them from A to D.

ICE launches a cryptocurrency data feed

Intercontinental Exchange (ICE), a company owning the New York Stock Exchange, is going to provide cryptocurrency prices data feed. The new feed will include data from 80% of cryptocurrency exchange trading volume. The data will be normalized and the information about transactions and order book data will be available. ICE owns many stock exchanges all over the world, e.g. New York Stock Exchange, NYSE Euronext (European market) and a few Asian stock exchanges. It also has shares in Coinbase Inc.

Taxes on Korean stock exchanges

According to local information agency, Yonhap, the South-Korean government announced that cryptocurrency exchanges in this country will need to pay 22% corporate and 2.2% local income taxes. The tax announcement comes right after the conclusion of an unprecedented anti-money laundering probe into six major South Korean banks. The South Korean government has recently been stepping up enforcement of cryptocurrency regulation within the country (ordering the financial probe, ban on the use of anonymous virtual accounts etc.).

France and Germany — tougher regulations on cryptocurrencies

After the recent meeting of Angela Merkel, the German Chancellor, and Macron, the French president, it is reported that the two countries are working towards ways to tighten the regulations on cryptocurrencies. This is creating a lot of worries among the European crypto community given the level of influence these two nations have in Europe and the EU.

Switzerland

On the other hand, Switzerland doesn’t think the opinion of France and Germany will affect their rather warm attitude towards cryptocurrencies. Swiss finance minister has a different point of view on this topic — he says it’s too early to regulate cryptocurrencies. This shows a division arising in Europe on the topic of cryptocurrencies.

Link to previous “What changed in crypto” letter 22–29 January 2018

Our next “What changed in crypto” is due on February 5th, 2018

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