all cats are gray in the dark

Your daily newsletter for September 6, 2018
Dark before dawn
"“Someone I loved once gave me a box full of darkness.
It took me years to understand that this too, was a gift.” 
- Mary Oliver
Boy oh boy has it been a rough Wednesday 😅 It's Thursday, and it's certain that everyone will keep their eyes peeled after what happened yesterday 👀 My eyes are open, my heart is broken, my soul is weak... Just kidding. Bring your torch, we'll go exploring in the dark 🔦
Hello... can you hear me?
One word. REKT. 

We saw close to ~$40 billion wiped out from the cryptosphere from today's flash crash, as total market capitalization fell ~17% to $200 billion. BTC dominance subsequently spiked from 53.2% to 54.9% as many other cryptocurrencies saw losses in the ~15-30% range 💔

If it's any consolation, BTC 'only' fell today by ~12.65% to ~$6,435 – the bad news is that BTC fell through the 21, 50 and 100-day EMA support lines, and lost the gains it had made in the past 2 weeks. The 21-day EMA line also crossed the 50-day EMA line, indicative of a bear-run in the near future. So buckle up, this bumpy ride might soon be getting bumpier... 🐻
A viable explanation for the crash?
Several days ago, $800 million worth of BTC was transferred to major exchanges  Bitfinex, Binance and Bitmex, rumored to be a Silk Road-linked wallet. Yesterday, there was a flash major sell-off of BTC on Bitmex and later Bitforex  💥 Negative news from Goldman Sachs (read below) was then released shortly after, accompanied by a 200,000 ETH flash sell-off on Bitfinex. The combination of these events could also have set off a chain of stop losses, further exacerbating the situation. Again, just rekt 🤷
Adding fuel to the fire
Multinational investment bank Goldman Sachs will be delaying its initial plans to launch a cryptocurrency trading desk, mainly due to regulatory uncertainty surrounding the space in the U.S. 🙃

Goldman Sachs is not eliminating the possibility entirely, simply pushing it down its priority list for now 📝 including its plan to offer a cryptocurrency custodian service to protect institutions' holdings. 

Trudging on
The Digital Currency Research Lab of the People's Bank of China (PBoC) has co-launched a fintech center in Nanjing city 🏢 with the both the Bank of Jiangsu and the University of Nanjing, in hopes of expanding ongoing research in fintech, including blockchain, and push out more pilot programs with banks and academic institutions 🤝

Dark horse
Swiss blockchain startup Smart Valor 🛡has gained approval from the Financial Market Supervisory Authority (FINMA) to locally operate an online investment platform for alternative investments. 

Smart Valor will be a regulator-approved financial intermediary, regularly supervised for AML compliance 🔍 by the Financial Services Standards Association (VQF), and will be launched in Q4 of 2018.

Stab in the dark
For the rest of this year, pioneer blockchain-powered identity startup Civic, will be paying for all identity checks for its users and business partners, in hopes of ramping up its rate of adoption and growth 💰Civic will be dedicating a third of its total supply, a total of 333 million CVC (currently valued at ~$38 million), to this effort 😮

Shut-eye
  • Bitcoin mining giant, Bitfury, has been equipping their mining rigs with mining cooling tanks filled with engineering liquid 'Novec' from 3M Co., to reduce energy consumption and spatial requirements. 
  • Coinbase will be rolling out British pound (GBP) support on Sep 7, for all traders residing in the U.K..
  • MEGA, the Google Chrome extension for file sharing, was compromised by hackers in its latest update (3.39.4). It was haversting login credentials and potentially cryptocurrency keys. Beware!! 📛
Poll of the Day
How much do you agree: I'm highly aware of the risks of installing Chrome extensions ⛔️
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And... do you take steps to actively monitor your Chrome extension use? (You should – they're really powerful! 😈)
What you said
"How much do you agree: It's not too risky to put 50% or more of my total portfolio into cryptocurrency"

The average was 6.3. The votes were very polarized, with most falling on either end of the spectrum.

"How much are you allocating to crypto in your current portfolio?"

30% voted "10-29%"
20% voted "10% or less"
20% voted "100% - go big or go home!
20% voted "30-49%"
10% voted "80-99%"

It seems that with crypto being nascent, we are split on both ends with some doing a little, and some going all in 😮 Mostly though, it seems there is a preference not to over-invest and have to deal with the increased portfolio volatility 📉

"How would you describe your current thinking about the strategy?"

You people said:

U have to be a special kind of stupid to do what I do - fortune favors the bold sometimes 😉

Keep crypto at about 30% and harvest some gains along the way while keeping 20% in long term - good to stick to a strategy! 🤓

I am reinvesting all profit from crypto back into it. I will cash on a bull run - Many are likely to do this as well, as they are realizing just how much the volatility of cryptocurrencies can impact their portfolio and cause immense stress 😥

My crypto assets may increase in value whereas if I left the money in the bank it would most definitely decrease in value. - it is true that coins like BTC are deflationary, but you are making the assumption that the base price of it will increase in the long-run! Strong faith, you have! 😇

Never put all the eggs in the same basket - the good 'ol diversification! 😎

"Are you ever shocked anymore by the sudden crashes in the market?"

70% said 'No' - I guess most of you guys have been in this space for some time now, and are pretty much desensitized to the large price swings 
💣

"
Advice for others today (yesterday)?"

Things have been worse in the past. And we always recovered 🙂 - We have definitely seen worse in the past 🌚

Invest in good stuff & hold. - I agree! Find fundamentally strong coins with good leadership! ✊

Hang on in there the good times will be back soon. If you're considering entering this space, right now is an excellent time. I feel the bottom is almost in and very very good times are ahead. - Thanks for the encouragement 💙

Hodl - Just do it. We gonna be gucci 👜
See you tomorrow!
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