I would expand heavily on this point. This is why you are forking, ie the problem you are solving.


Source: https://xkcd.com/927/

Overnight, shorting Ethereum became the new hot trade. From Techcrunch publishing an article on why Ethereum is doomed to Coindesk’s article today on ETH short volume, the pitchforks are out for last year’s cryptocurrency darling.

Now I don’t have a view on the price of Ethereum as a whole or relative to other cryptocurrencies. However, I think one reason for the price drop is because people foresee the ability for other smart contract blockchains like EOS and Cardano, as well as Bitcoin-based solutions like Lightning Network and Rootstock, to replace Ethereum.

I’m skeptical. Why? Because people hate change.

Currently, the…


On the whole, financial regulations are a net positive for society. Laws and regulations protect consumers from frauds and ensure that institutions responsible for a lot of money put in safeguards to protect it.

However, problems occur when technology introduces new ways of doing things that were not contemplated at the time when laws were written. Regulators then need to interpret how existing laws might be applied to these new methods. They seek guidance from the industry and hold long meetings. Invariably, there is a lag between when the technology is introduced and when regulations are amended or added to…


Source: Kayla Feng

In the all-consuming, 24/7 crypto world, it’s easy to lose sight of what truly matters.

As an investor, during days like today when markets are a sea of red, you feel despondent and can’t stop watching the markets.

As a founder, you live with a constant pit of worry that you are failing, aren’t moving fast enough, or are working on the wrong things.

But then my wife sent me a video of my daughter sounding out the words to the left and writing them down.

I was so proud of her that I started to tear up. …


Non-crypto startups are trained to focus on real metrics rather than vanity ones. Crypto startups shouldn’t be any different.

Vanity metrics in crypto

  • Number of Telegram group members
  • Number of crypto-famous advisors on your website
  • Number of partnerships you sign with larger companies
  • Number of Github stars
  • Number of commits in your Github repo
  • Number of people who attended your meetups
  • Amount you raised in your ICO
  • Your project’s market capitalization
  • … and even number of transactions on your blockchain (unless you account for spam and washing)

Real metrics in crypto

  • If you’re a protocol, the amount of money your dApp developers are making or saving.
  • If you’re…


Crypto is filled with techno-religious zealotry. A prime example is Jeremy Rubin’s nonsensical hit piece on Ethereum that somehow made it into TechCrunch today.

Why the Article Sucks

Rubin, an early Bitcoin Core developer and advisor to Stellar, claims that ETH should worthless because it can be replaced by the ERC-20 tokens issued on top of it, both as a medium of exchange and gas payment mechanism.

While theoretically possible, this is the opposite of what actually has transpired in the past year. I’m pretty sure ETH is the cryptocurrency most widely used as Satoshi’s original whitepaper wanted: a global medium of exchange.

This…


From March 2017 to February 2018, most of Ethereum’s on-chain transaction volume was essentially fake. This should be bigger news.

Source: coinmetrics.io

While browsing the wonderful datasets at coinmetrics.io earlier today, I was shocked to come across a blog post that discussed how they had adjusted Ethereum transaction volume to eliminate transactions that were clearly due to a “mixer” (i.e. transaction washing bot).

The mixer was massive

  • 17.7M ETH entered and exited (17% of circulating supply!)
  • 393k input addresses, 2.38m output addresses
  • 88% of total ETH transaction volume at its peak
  • Stopped on February 28, 2018


Crypto tends to attract people who make wild predictions.

In hindsight, these predictions may look a bit silly, but given the trajectory of “Bircoin” last year, it probably didn’t seem crazy at the times when those predictions are made.

While making wild predictions is free for these soothsayers, it was extremely expensive for the hordes of retail investors who rushed to buy Bitcoin after seeing these types of stories.

Predictors should use prediction markets

Now that Augur, a prediction market where anyone can place a bet on a future outcome, is live, the first question we should ask these folks is whether they have…


I saw this CNBC headline yesterday and thought “Wow this channel has gone really gone downhill.”

Below is the chart referenced in the article, which seems to show a sharp correlation between the price of Bitcoin and the MSCI Emerging Markets Index.

Even better, the EM index appears to be a leading indicator! So all you have to do is to see what happens in EM, make the same trade in BTC, and…


When I was young, I wanted to be a writer. According to my parents, I later abandoned that dream because I found out how much writers actually make.

In reality, it was because I was way too OCD about it. When I wrote a column for my college newspaper, it took me hours to grind out a few measly hundreds of words, because I spent so much time editing it.

This is an experiment to see how long of a streak I can maintain in writing a daily thought about blockchains and cryptocurrencies. …

Michael Feng

Co-founder & CEO at Hummingbot

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