Opening the window of opportunity

Your daily newsletter for November 2, 2018
Pave the Way
“He who opens a school door, closes a prison.”
- Victor Hugo
Another week down. Congratulations, fellow readers on making it through another week! 🎉 Be sure to make full use of this well deserved weekend and do something productive! 👍 Today in history, specifically in 1948 and 1976, Harry S Truman and Jimmy (James Earl) Carter were respectively elected the 33rd and the 39th president of the United States.

In today's newsletter, we will be covering the Hong Kong SFA's recent circular and new regulatory sandbox program, Binance Uganda's strong investor demand and Bithumb and seriesOne to launch a compliant security token exchange in the U.S. We will also be covering Ethereum Classic (ETC) in our weekly deep dive!

Hope you enjoy today's newsletter, and don't forget to answer the polls down below too! Happy reading! 📚
Gotta pry this locked door open
We didn't see much movement in the crypto space over the last 24 hours. Total market capitalization dropped slightly from ~$207.0 billion to ~$205.4 billion, and volume remained at the ~$11.0 billion levels. Most cryptocurrencies are either seeing gains or losses in the ~1-3% range. 👀

BTC dropped ~0.52% and is currently trading at ~$6,360. It continues to remain below its 21-day EMA line, for the eleventh consecutive day (let's see how long this streak can continue). 😭 The BTC volatility index continues to remain at its all-year lowest at 1.54% for the 30-day estimate. These volatility levels are expected to continue through this weekend. 

With no fundamental changes in the crypto space on the horizon, it is unlikely that we will get to see higher volatility levels anytime soon. 😔

Building access points
In an effort to enhance investor protection, the Hong Kong Securities and Futures Commission (SFC) released a circular mandating investment funds based in Hong Kong wanting to invest more than 10% of their gross portfolios into "virtual assets", to first obtain a license by registering with them. 📝

According to the SFC's chief executive officer, Ashley Alder, this will help it "regulate the management or distribution of virtual asset funds" such that "investors' interests would be protected either at the fund management level, at the distribution level, or both." 👍

The SFC is also launching a new regulatory sandbox program for cryptocurrency exchanges that apply and are accepted, to observe their operations and to to determine whether to introduce a licensing scheme in the future. 😁 Once granted approval, they will be allowed to operate, but will be subject to intensive reporting and monitoring to and from the SFC.

Opening doors
Binance Uganda, despite currently only offering support for BTC and ETH trading, has signed up 40,000 users in the first week since its launch in October, indicative of a strong demand for cryptocurrencies in the country. 😲

According to Binance's chief financial officer, Wei Zhou, because 74% of Ugandan households are unbanked, Ugandans "just have to have money within the mobile payment system", and thus Binance Uganda has partnered with a local mobile payments provider that will convert fiat to crypto or vice versa through the platform. 📱

According to the chairman of the Uganda Blockchain Association, Kwame Rugunda, Ugandans are "hungry" for access to cryptocurrencies and since Binance Uganda launched, several other global exchanges have started contacting local regulators. 🗣️

Foundation blocks
The South Korean crypto exchange, Bithumb, has partnered up with the crowdfunding platform, seriesOne, to launch a compliant security token exchange in the U.S., which is still currently subject to regulatory approvals from the SEC and FINRA. 👏

The CEO of seriesOne, Michael Mildenberger, believes that the partnership will enable them to not only "create a unique product to not only tokenize major assets", but "also create liquidity through a compliant token exchange." 😄

Crypto deep dive: Ethereum Classic
  • Cryptocurrency: ETC
  • Market Capitalization Rank: 16th (~$955 billion)
  • Consensus Algorithm: Proof-of-Work (PoW) 
How it happened ⚙️
  • On June 2016, 3.6 million ETH (~$50 million) was stolen from “The DAO” that was built on the Ethereum blockchain. The DAO and the Ethereum community then held a deliberation on July 2016 about a hard fork in response such that the stolen Ethereum could be restored. One side wanted to get the Ethereum back, while the other wanted to stay true to the "code is law" rule. Ethereum classic, which is immutable, was thus formed. 
Why people love it 😘
  • ETC has a capped supply of ~210 million, which reduces inflationary pressure and increases its value as a store of value.
  • ETC stands true to the original nature of the blockchain - an immutable code that is free from any entity or organization tampering with it. On the ETC blockchain, the “code is law”. People can appreciate the high degree of decentralization of ETC.
  • ETC is easily accessible because of its early entrance into the space. Many of the cryptocurrency exchanges and wallets offer support for it. There is some first mover advantage in this regard. 
Why people doubt it 🤔
  • The lack of a governing body for ETC may hurt it going forward. It has to naturally and continually incentivize developers to continue building the ETC code.
  • Although ETC inherited the ETH codebase which allows it to create and test smart contracts, the ETC community is significantly smaller. Hence, the number of developers working on the ETC code are much smaller which cumulatively affects its progress in the long run.
  • ETC is considered to be an older tech generation blockchain as it was forked from ETH. With few existing dApps currently running on the ETC blockchain, it will get increasingly difficult for ETC to capture a larger market share of the smart contract space going forward, especially with ETH’s strong first mover advantage, and other newer technologically advanced blockchains emerging.

Other news
  • Blockchain startup, Stably, has just launched its own stablecoin called StableUSD (USDS). The stablecoin is backed by U.S. dollars held in escrow by a regulated trust company in the U.S. state of Nevada, called Prime Trust. 💲
  • The company behind "CryptoKitties", Dapper Labs, is looking to build the platform, and has received a cumulative $15 million backing from the likes of Venrock, Google Ventures, SamsungNEXT, Andreessen Horowitz (a16z), William Morris Endeavorto and aXiomatic to do so. 💰
  • The Bitcoin teller machine (BTM) operator, Coinsource, has just become the 12th crypto company to receive a "BitLicense" from the New York State Department of Financial Services (NYDFS). It already had 40 BTMs operating under a provisional license all over the state, prior to this. 💪
Poll of the Day
How likely (10 being most likely) will mainstream adoption for cryptocurrencies in third world countries happen faster than first world countries? 💭
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And...do you think crypto will be mainstream adopted before the remaining 30% of unbanked adults open a bank account? Also, what are your plans this weekend? Share with me in the polls! 😆
What you said
"How much do you agree: "The crypto space cannot prosper without institutional funds entering it."

The average vote was only a 6.4. Hmm, this wasn't too convincing. 😂

"Do you agree with the BitMEX CEO's comments that Bitcoin's current volatility levels could persist for 12-18 more months?"

60% voted "Yes."
40% voted "No."

"Why or why not?"

You guys said:
Things usually happen at the opposite of what I predicted - Hahahaha, don't say that. 😆
It’s going to take time but someone could drop a penny and bitcoin will shoot up 400 dollars in 15 minuets - I am confident that it would take some time. ⌛
Continued exposure, coverage and word of mouth - However, investor confidence isn't too strong at the moment after witnessing the latest brutal market correction. Without a fundamental change in the space, it would be hard to reignite the belief in them again regarding cryptocurrencies. 😞
I don't see a volatile market as far as Bitcoin is concerned.. its having stable price.. and i see greater adoption & awareness in coming time.. - It will come! 💪
We need the large institutional money to firstly push up the price and market cap but also to stop these crazy up and down swings caused by speculation / news. - These institutions will always follow the money. Let's be patient!

"How was your Halloween? Tell me about it!"

You guys said:

Not bad went to south beach beautiful day watched a band play, they were Wayne and Garth shwing - Chill vibes!
Vacation - I'm envious! 💚
We planned all kiddies food.. it was awesome... -  Must've been so fun! 🙂
Very quiet one this year. Stayed in with a glass or 2 of Gin watching TV. I'm getting old you know. - This sounds like the perfect day for me. And no, you're still young at heart. 🤘
I hid. - Hahaha, you cracked me up. 🤣
 
Thank you all for reading thus far! Catch you back here again tomorrow! 💙
See you on Monday!
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