The July & August Review
It has been a long hot summer at SwissBorg. As the price of Bitcoin rose, fell and rose again, our team continued to focus on the development and launch of our upcoming, show-case product: the SwissBorg Wealth App. Our Community App passed the significant milestone of 25K players from the four corners of the globe. The Bitcoin price prediction app, created to educate and entertain and motivate our community, is thriving.
The summer also brought the news of us having to downsize in Japan and re-think our Asia strategy. The unfortunate news, however, came with a silver lining. We can now redirect the rather big budget allocated to Japan towards efforts to expand in markets like Canada and the EU. We will keep our presence in Japan and Asia to make sure that our valued community members are kept abreast of our progress and involved in our development.
The best news of this summer is that we have completed the first tests of the multi-node Order Execution Management System (our financial engine). The SwissBorg OEMS can now perform best execution successfully taking into consideration four of the top crypto exchanges. With our OEMS you can execute an order in milliseconds, and that thrills us!
Our content strategy has turned towards video production to attract new participants. Our Head of Communication, Alex Fazel’s Cryptonites series has reached a viral number of viewers and subscribers who tune in every week to listen to crypto gurus and experts. Our founder, Cyrus Fazel, is producing a series of AMA (Ask Me Anything) videos where he answers community members queries and discusses his vision. Anthony Lesoismier, our co-founder, travelled to Canada to boost our efforts to expand in that significant market. He gave a talk, along with Marco Guerreiro, our CRO, at a big conference in Toronto that attracts top Canadian start-ups.
Christophe Diserens our CBDO and Otilia Gudana, our DAO Manager, have fine-tuned and finalised the SwissBorg DAO platform. It is a platform that aims to tap into the community members’ talents, skills, and passions.
As we get closer to the launch of our Wealth App, we have augmented the efforts of our data team, headed by Bastien Muster. Besides the Monthly Bitcoin Analysis that you find here, every month we produce a report about our Community App. Our data team is also working on creating community-focused user profiles to help us with future marketing efforts.
Join us in spreading the word of what we do. If you haven’t downloaded our Community App, please do so now, click on the link to learn and earn Bitcoin for free: https://bit.ly/2YGlvJJ
AMA (Ask Me Anything with Cyrus Fazel )
The MBA by Bastien Muster, Head of Data (30.8.2019)
MONTHLY BITCOIN ANALYSIS
July-August 2019
Disclaimer: The information on the Bitcoin Analysis is not targeted at the general public of any particular country. It is not intended to be distributed or used by residents of any country where such distribution or use would contravene any local law or regulatory requirement.
Any analysis, opinion, commentary or research-based material on our Bitcoin Analysis is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our Bitcoin Analysis are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our Analysis (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
Copyright © 2019 SwissBorg, All rights reserved.
Bitcoin Technical Analysis
Key technical indicators and observations.
Don’t miss our article on technical analysis that will give you the necessary information to enlighten you.
Current price (30.8.2019) $9’488
Closest Support / Resistance level $9’100 / $10’000
Change in price (monthly) -5.8%
Change in volume (monthly) -22%
BTC/USD (weekly): Price, 20-weeks moving average, Bollinger Bands, MACD lines, and volume. (Source: tradingview.com)
- Last month, we had reviewed the market just before the price exploded to test the $14’000 resistance, the highest level recorded in 2019. This was followed by an extremely violent correction that saw the Bitcoin lose nearly $4’000 in a few hours.
- As we mentioned in the last Monthly Report, when we move too far from the average, it is more and more likely to see a return to an equilibrium position like a spring that is stretched too much. Thus, the last two months have seen a significant return to the average with a downward trend followed by a sideways market.
- When the key psychological support of the $10,000 failed, the price dropped sharply to $9’000 where a strong demand was found. During August, Bitcoin has held above $9’000 and has built a large support at $10’000. However, a downward triangle has formed in the last two months with a downward trend despite some significant recoveries.
- For now, Bitcoin has held above $9000 and seems to have built larger support at $10,000 again. However, a downward triangle has formed in the last two months with a downward trend despite some significant recoveries.
- One of these recoveries was induced by Bakkt’s announcement that it will propose physically-delivered future contracts. This expected announcement is bullish news for the bitcoin price because, for the first time, regulated and compliant futures contracts will be offered with delivered bitcoin and not cash. This will potentially increase the demand for Bitcoin as Bakkt will have to hold a large number of them.
- Recently, the price has also reacted to announcements related to the trade war between the United States and China, which tends to show that Bitcoin is increasingly considered a safe haven.
- At the time of writing, The price of Bitcoin dropped sharply by more than $600. To reach its lowest level this month. This has been probably partially induced by the expiration of the CME futures expiring this week. Indeed, these futures require a significant amount of cash to settle them.
- 2019 is still the year of Bitcoin. The altcoin market suffered and fell sharply compared to Bitcoin, which reached a level of nearly 70% in terms of dominance, a level equivalent to the beginning of 2017.What could we expect for the future?
In mid-August, we exceeded the number of days above $10,000 compared to 2018. However, a bearish trend signal has just been triggered: the MACD lines have crossed on the graph above indicating a probable change in momentum over the long term. Even if this indicator offers false signals, it is likely that we will enter a downtrend or consolidate above $9,000 in a sideways market if there is no significant catalyst in the medium term. Most of the time, when a triangle forms, a breakout is often observed when the support level and the trend line converge. The more often the support is tested, the greater the chance of a fall. Thus, after the drop observed this week, the level to follow is 9000–9100: if this support does not hold, it is likely that the $8000 mark will be rapidly approaching.
However, Bitcoin remains an exceptional currency in terms of its behaviour and it is possible that the opposite may be true. If the price can consolidate above $9,000-$10,000 for a long enough period of time with reduced volatility, it is likely that altcoins will resume their forward march at the end of the year. But for the time being, investors are focused on Bitcoin.
The coming weeks and the end of the year will be exciting to follow!
Don’t miss the free daily analyses provided by our experts in the SwissBorg Community application!
Glossary
Moving Average (MA): Trend-following indicator derived from the simple average of the prices on a given time period (for example 20 days).
Support/Resistance: Levels where the prices will tend to stop and could probably reverse its trend. A support level will likely tend to stop the prices dropping while resistance is a level where the selling pressure is higher and will likely stop the price rising. Once a support or resistance level are reached, the price will bounce back or break through the level and continue his actual trend.
MACD: The Moving Average Convergence Divergence is a trend-following momentum indicator that compares a short period and a longer period moving average. From these comparisons, a “signal line” and a “MACD” line are constructed. Multiple information can be extracted from this indicator. In particular, when the “Signal” and the “MACD” are crossing, this indicates a probable momentum change between “bulls” and “bears”.
Alex Fazel, Head of Communications, Reports
One of the primary focuses in the U.K. was to create a communications strategy and execution plan to effectively build momentum ahead of the Wealth App launch in Q4, 2019.
The timing of the marketing campaign will be critical, and we will focus on delivering one key update a week, gradually increasing the intensity and importance of the news.
Japan Update
It is not without regret that we have to announce the down-sizing of our Tokyo branch. This is in no way a reflection of our relations with our wonderful Japan team in Tokyo, but rather because of legal obstacles that make it difficult for us to engage in business in Japan at the present time.
We want to reassure you by sharing some information so that you can better understand the benefits of this decision for the community.
In terms of output, we have managed to build an active community across Japan and have made strong relationships with many wonderful people, not only in Japan but across Asia. So, we have no regrets.
The primary concern that forced us to decide on closing our Japan office is the high level of uncertainty in terms of acquiring the virtual currency exchange license and our ability to promote our SwissBorg Wealth App.
In terms of costs, the budget, just for growing the team, would at least double to be eligible for a license that we are not likely to receive for another year.
- Our Wealth App does not operate as a regular exchange. The business model, the sophisticated technology and the cybersecurity do not fit the general requirements set by the FSA, and for those reasons, we will not be able to receive a license in Japan the near future.
- The cost of the VC license, as well as the time-consuming nature of it, made it an economically non-viable venture at this moment in time.
- This does not mean that we have abandoned our Japanese token holders, we hold them dear and hope to deliver the promises we outlined at our ICO.
This budget can be allocated more strategically and awarded in zones like Switzerland and Malta, where we are a member of VQF (the biggest Swiss SRO) and applying for the VFA License under the transitionary period granted to us on October 2018. We want to focus on zones where we are confident that we have high chances of getting a broker/dealer license by the time we release the Wealth App. At the moment we are concentrating efforts on hiring in these regions and have found some great talent in the past two months. We also have recently found a very competent multilingual customer support team to ensure excellent user experience for our future app users and community members.
We will also allocate this budget to marketing and ensure the right timing to build a powerful momentum before the launch of the Wealth App. Many community members have complained about the lack of marketing, and in fact, they were correct. We only spent roughly $50K in marketing for the entire year, and most of the downloads of our Community App were organic. The good news is we will be able to take advantage of this unused budget with the right timing to generate sustainable growth and not use the pump and dump and short-term schemes before we release the Wealth App.
So now that the strategic decision and budget allocation has been clarified, it is important to understand what is the vision for Japan:
- Find a way for Japanese community members to benefit from our Wealth App and products.
- Bring the price of CHSB back to ICO levels and eventually help people make gains.
How?
Although v.1 will initially be available for community members outside of Japan and mainly in the EU zone, in terms of technology, we can already integrate a Japanese Yen fiat currency gateway on the Wealth App, and we are very actively looking to find solutions for v.2. We also have opened conversations with licensed exchanges in Japan interested in seeing demos of our tech and will update you accordingly.
For 2) We will be announcing the latest CHSB token utility with a robust ‘go-to’ market strategy. We have never been more confident with our high-level strategy and believe it could potentially push the buy-side of the CHSB quite heavily.
We want to show profound gratitude to the 3000+ Japanese CHSB token holders for trusting SwissBorg’s vision and mission. We are very close to Q4 and expect a bright future.
We want to assure all of you that we are working very hard to build the best products for you and we are currently seeking new ways to make sure that all our Japanese contributors get access to our products.
Tech Update by Alex Fazel
We are very proud to officialise the first tests of the multi-node Order Execution Management System (our financial engine). Our OEMS can now perform best execution successfully taking into consideration all 4 of these top exchanges.
In the current B2C or as we like to call it, B4C (Business for community) market, BEST execution is very limited and does not go further than two exchanges except for one project in a completely different region. What’s more, our connectivity is only one of the unique value propositions our community will benefit from using our Wealth App.
At present, our OEMS can execute on the four following exchanges:
1) Binance
2) Kraken
3) LMAX
4) HitBTC
Why Binance? Binance is one of the most liquid exchanges in the world averaging at 1 billion USD/ day in real trading volume. Additionally, Binance commission rates are one of the most competitive in the market with a standard trading fee of 0.1%. They are coming from an ICO and having their own game-changing token: BNB token is aligned with our principles. We look forward to being a Binance volume provider and bridging our relationships as we move forward.
Why Kraken? Kraken is also one of the top regulated exchanges with real volume and a great source of liquidity with key fiat gateways for our primary markets (GBP, EURO and CAD). We also have a great relationship with their team members.
Why LMAX? LMAX is an institutional exchange providing even deeper liquidity for the majors (BTC, ETH, LTC, etc.). This exchange offers excellent reliability as an institutional partner, minimising the chances of losing assets or experiencing common issues such as downtime or frozen assets.
Why HitBTC? As the CHSB multi-utility token is the heart of our entire ecosystem, we are connecting to this exchange to maximise liquidity of our token to make the purchase extremely simple, fast and of course a lot more accessible for the current community and all the new members joining this new era.
Now the BIG WHY for you, our awesome community members. Let’s put this into perspective and look at the most important aspects: your benefits!
Creating our own master book managing four order books simultaneously is a game-changer for multiple reasons.
4X more liquidity: How does it feel to have to wait for orders to execute? How inconvenient is it for people who trade larger volumes? And now what if you can multiply that liquidity by 4X? Just picture how many community members and investors could migrate to our platform? Not to forget that we are talking about executing an order in milliseconds with our OEMS.
4X chances for BEST prices: Best prices is a very complicated matter as different exchanges may have different price advantages on different cryptocurrencies. Our financial intelligence will find the best available prices based on these four order books giving us an edge on any human being trying to execute this manually through multiple accounts in real-time.
More benefits will be announced over the coming months through different types of formats, including video, and we are impatient to share this with the community. Time will tell.
We will be considering connectivity to other exchanges so if you have any suggestions with valid reasons on which exchange we should add to our connectivity and why- please connect with us on any platform. Also, understand that our selection criteria are strict as quantity will most likely hurt quality.
We are incredibly proud to be able to provide this type of innovative technology to the community and will keep scaling our mobile platform so that Crypto investors will no longer need multiple exchange accounts and wallets.
We will provide more details as to what best execution means and why the multi-node OEMS is so essential for the community. We are very proud of its features and will keep everyone updated as we continue to scale.
Community App Report by Bastien Muster
The community reached a record accuracy of more than 60% during the spectacular rise of Bitcoin from $9,500 to $12,000. Several players distinguished themselves in this period. However, the community suffered during the subsequent correction. You only had 49% accuracy, and some of the more bearish players managed to move up the rankings spectacularly. The competition will be tight until the end! Read more here.
Cyrus Fazel Interviews Our Top Community App Players from AirdropBob!
Korea Update by Jayne Kim, SwissBorg Korea PR & Business Development Manager
Naver Blog
For the Korean community, we are uploading the translated versions of the monthly reports and SwissBorg articles (including the July AMA). With only 14 articles, we reached hundreds of subscribers including one of the most influential crypto bloggers in South Korea. For those of you who are not subscribed to the Naver Blog, please follow us here! https://blog.naver.com/swissborg
Xangle
Like stock investors using public disclosures for information, there is a new Korean platform providing information for blockchain projects.
Xangle aims to make provide public information on blockchain projects and cryptocurrencies. They also provide institutional-grade due-diligence reports to major Korean exchanges like Bithumb, Korbit, and GOPAX.
SwissBorg recently opened an official account here at Xangle and we’ll be able to reach out with more transparency toward a greater number of people!
Coming up next — Korean Community Gathering
On Sept 21st, we’ll have a Korean community gathering in Seoul. We’ll update the local community with SwissBorg vision, mission, and progress.
If you want to participate, please send us a message on Naver blog or contact Jayne Kim directly.
Cryptonites Season 1 Ends With a Blast! Alex Fazel Reports
Thanks to all you awesome community members, in only three months (12 episodes) Cryptonites has reached over 2K subscribers! We appreciate all your help in sharing, liking, commenting and more importantly watching the interviews.
Initially, we set our targets to 3K subscribers by the end of the year based on channel adoption we have observed on other successful crypto channels, BUT we have updated this target to 4K by December 31st 2019. We are also getting over 4K views of our top videos with an average like score ranging between 96–99%.
If you have not had the chance to watch the series, we have been honoured to have great educators such as Andreas Antonopoulos, Tom Lee, Pavel Matveev, Richard Ells, Naeem Aslam and many more.
On top of the YouTube performance, the channel has been boosting the potential for strategic partnerships and look forward to seeing results on a B2B level as well.
The sad news is that we have come to the end of this journey. We would really like to thank you for the continuous support up to here. We are forever grateful.
The good news is, we will be making season 2 with a fresh new look and many more benefits such as a reward system for people to earn while learning similar to the SwissBorg philosophy.
More details to come in the next monthly report. Stay tuned and don’t forget to catch-up with the previous episodes.
FuckUpNights Toronto
At Fuckup Nights, a global speaker series in Toronto, one of the world’s biggest conferences for innovative startups, our co-founder, Anthony Lesoismier and, our CRO, Marco Guerreiro spoke about the trials and tribulations of entrepreneurship.
For Hire
