Welcome to the World of Cryptocurrency Investing!
Welcome to the first newsletter. I would like to have the newsletter setup into 6 sections: Market Commentary, Top Links, My Blog Posts, Graph of the Week, Cryptocurrency Prices and Initial Coin Offerings This Week. Let me know your thoughts. I plan to send it out every Tuesday.
Just some background on me. I am an investor at Grasshopper Capital, a cryptocurrency and cryptoasset fund. I hope you learn something every week from this newsletter. I also hope to learn from you so please message me if you disagree with something I say!
Ransomeware attack was the big news this week. I thought the price of Bitcoin would’ve been more negatively affected. It was only down ~5% at its peak and I question how much of that was truly related to the Ransomeware attack.
Ripple has been on a tear and is now the second most valued currency at over $9B in network value. I’m not a fan of it because it’s premined and the company has the ability to release more coins on the market at any time. At the same time, I wouldn’t bet against Ripple. As John Keynes said, “The market can remain irrational longer than you can remain solvent.”
Ripple’s demand seems to be fueled by investors in Japan who are excited about the potential of cryptocurrency especially in relation to payments. That also explains the exponential increase in Stellar the past couple weeks as well.
I was very supportive of Coinmarketcap’s decision to remove the term altcoin from their site. I hope words like cryptoassets are used in the future because I think that is a much more appropriate term.
I’m still bullish on the cryptocurrency market as a whole. I believe we will see a 5–10% pullback in the next month on the major cryptocurrencies such as Bitcoin, Ethereum, Ripple, and Litecoin. I believe in the same time frame we will see a lot of smaller cryptocurrencies and cryptoassets suffer major corrections in the area of 50+%, but I don’t believe this applies to the tokens with higher market caps such as Golem and Augur.
Graph of the Week
I am becoming a Ripple Developer.
Data according to Brave New Coin as of 9:30 PM EST on Monday, May 15th