“Growth is painful. Change is painful. But, nothing is as painful as staying stuck where you do not belong.”
- N. R. Narayana Murthy
It's the final weekend of 2018! 😲 Cherish and make full use of it before we step into the new year! 👊 Also, if you haven't already, be sure to start thinking of your new year's resolutions. Even better, act on them right now!
This fine Friday also happens to be the birthday of the late Woodrow Wilson, the 28th president of the United States. He is perhaps best known for leading the U.S. through WWI and for crafting the Treaty of Versailles' "Fourteen Points", which led to the creation of the League of Nations. Woodrow Wilson would have turned 162 today!
In today's newsletter, we will be covering the Defense Logistics Agency (DLA) of the U.S. Department of Defense becoming increasingly aware of the benefits of Blockchain, a Taiwanese man caught for tapping into the power supply of major stores to mine cryptocurrencies and the former CEO of defunct crypto exchange Mt. Gox on trial under charges of fraud. In today's weekly deep dive, we will also be covering Stellar (XLM)!
Please don't forget to answer the polls down below too! It's a great way for us to interact with you all and hear what you have to say. 💭 Happy reading! 📚
Slipping away 👋
Over the last 24 hours, we saw another red day in the crypto markets. Total market capitalization fell a further ~$6.1 billion to ~$120.4 billion, and most coins are seeing losses in the ~5-12% range. 📉 This current retracement, which followed shortly after the mini bull run we experienced last week, also brought BTC dominance back up to ~52.9%. Volume has also been tapering off from the 7 day highs of ~$24 billion last Monday.
BTC is currently down ~3.6% and is trading at ~$3,660. It continues to trade below its 21-day EMA resistance line after breaking past that support level 2 days ago. With MACD indicators about to hit divergence, and with RSI levels on the daily chart showing some bearish momentum building up, we could see BTC suppressed further in the coming days. 😔
Benefits abound 👍
The Troop Support division of the Defense Logistics Agency (DLA), a combat support agency in the U.S. Department of Defense, is becoming increasingly aware of the benefits of employing Blockchain to aid in increasing visibility and information synchronicity. 👀
According to the deputy director of DLA's Construction and Equipment unit, the DLA believes that blockchain can speed up the process of ordering raw materials from manufacturers, and ultimately getting it delivered to its destination, thereby delivering emergency supplies in a drastically reduced time frame. It also recently held a meeting in Philadelphia to understand how blockchain could have improved its efforts in assisting in Puerto Rico after the devastating Hurricane Maria in 2017, as part of its effort to seek how blockchain can be integrated into existing processes. 👌🏻
Additionally, the Troop Support’s Continuous Process Improvement (CPI) office has teamed up with global shipping company Maersk to set in place a supply chain platform integrated with blockchain technology. 😲
Power sap 🥤
A Taiwanese man by the name of Yang was caught tapping into the power supply of 17 major stores in Taiwan for the use of his crypto mining operations. 🔌 He is suspected of stealing electricity valued at over NT$100 million ($3.25 million) via his various business premises to mine BTC and ETH, reaping around the same amount in mining profits. 🤯
Achieved with the help of electricians, the circuitry of these stores were rewired into his nearby rented shop spaces to be used right before they reached the power-usage meters, thus going undiscovered until an investigation was launched by the stores after noticing an unstable power supply. 🤔
More of such cases have surfaced, where 2 principals of a Chinese school, as well as a man in the province of Anhui were caught siphoning power from their local power grids for crypto-mining purposes.
On trial 👨⚖️
Mark Karpeles, former CEO of the currently defunct crypto exchange Mt. Gox, is on trial in Tokyo under charges of fraud pertaining to data manipulation, and embezzlement of approximately $3.1 million as acting CEO at the time. 💸
Karpeles is on trial not for loss of Bitcoins, but for improper management of funds, and the trial is expecting to arrive at a verdict on the 15th of March 2019. 📅 He is alleged to have used the embezzled funds for investment in a tech startup, purchasing luxury goods, as well as hiring prostitutes. 😲
Crypto deep dive: Stellar
Market Capitalization Rank: 5th (~$2.1 billion)
Consensus: Stellar Consensus Protocol - does not require all nodes to be in agreement to reach a consensus.
The gist of it ⚙️
Stellar was founded by Jed McCaleb and Joyce Kim in 2014, and is a fork off of Ripple (RPX). Jed was actually the founder of Ripple (XRP)! The had a different set of ideologies that were fundamentally different from the rest of the RPX team, and thus left to start XLM based on those ideals.
Why people love it 😘
XLM has a built-in, fixed, nominal inflation routine mechanism that increases at 1% per year. This predictability is can be preferred to some.
The XLM network can facilitate multi-currency exchanges and store orders to create an order book. Essentially, XLM has a decentralized exchange functionality to match buyers with sellers across multiple trading pairs.
Fast transaction speeds (~5 tps) with low fees. The fees are currently approximately ~$0.000002 per transaction, which is distributed weekly as part of the inflation pay outs.
Partnerships with recognizable brands like IBM, Deloitte, Stripe, ICICI Bank, TransferTo and Tempo.
Why people doubt it 🤔
The Stellar Development Foundation owns a majority share of the tokens (~80%). About half of those tokens are set to be distributed in the coming years, but this centralized structure forces investors to place trust on the foundation that the distribution will actually take place.
Centralized nature may prevent capital flows from retail investors.
As of now, only ~20% of XLM tokens have been distributed, meaning that by the time the remaining ~80% do get distributed, the relative price of XLM has to 5x just to keep its current price. Essentially, XLM's demand has to grow accordingly by many fold just to maintain the current price.
Other news 📰
According to research conducted by the Wall Street Journal on the whitepapers of 3,291 crypto projects, it was discovered that 16% of them showed signs of plagiarism, identity theft and promises of implausible returns. 👿
The Dutch crypto firm Libereum has acquired Spanish soccer club Elche CF for $4.9 million. ⚽
The National Bank of Kuwait (NBK) has launched a cross-border remittance product based on RippleNet’s blockchain technology. 🤖
Poll of the Day
On a scale of 1-10, how confident are you to commit to your new year resolutions for 2019?"💭
And...what are your new year resolutions for 2019? Also, what are your plans for the final weekend of 2018? Share with me in the polls! 😆
What you said
"How much do you agree: "More crypto/ blockchain companies should be sponsoring sporting events" 💭
The average vote was 8.1. Most of you seem to be in agreement of this. Crypto sponsorships can be a great way to improve exposure for the space, but I believe it has to be done in a non-tacky way. Events have to be carefully selected, and I would think bigger, more well known events would be preferred.
"Why do you think so?"
You guys said:
Blockchain companies sponsoring events will definitely bring awareness. but if someone spends his personal wealth its ok. but blockchain companies spending money raised through ICO is not ok, they should rather concentrate on building the product so that investors than get their value on their investment. - I think that using the funds raised through the ICO can be used for marketing, but projects should stay within the marketing budget plan laid out prior to the ICO date. It has to be done so responsibly and transparently. 👍 Not Just Sports but to be broadcasted in general commercials. If some of these ico's would fund some air time their project might go a lot better. - Some projects could def use a marketing boost. However, most projects are focusing on building their tech at the moment which, they rightfully so should be doing. 😊 Sports are the problem-opiate of the people. - While watching sporting events can be a form of escapism, I wouldn’t go so far as to call it the ‘problem-opiate’ of the people. It's all about balance! ☯️ Creates greater awareness among earth population and greater acceptance. Many major banks support sports and sports people, great move to promote health and wealth - True. Adoption is key 🔑, ease of use, the people 👨👨👦👦🙋♂️🕵🏻♀️👩🏽✈️Need crypto - The wide reach sporting events may could help inch us closer towards mainstream adoption. 💪 Well,.....Why not ? - No harm trying! 🤷 in countries where Cryptocurrency is prohibited if a company comes out to sponsor an event it will bring more awareness to the people and making it hard for the government to ban fully - Interesting perspective. It might gradually sway countries that prohibit the use of cryptocurrencies to come to accept them. 🤞 Will it work? Time will tell with Litecion. - I think UFC is a great way to start because it has a younger viewing audience, which could prompt the younger generation to start learn more about and get involved in the budding industry. 😀 Sponsoring sporting events will help further popularize crypto/blockchain and improve it's use and acceptance around the globe. - Agreed, it could definitely contribute to that. Why sport, together with series and movies, has become the Roman circus of today's society ... And any advertising on any sports shirt praises the product - Name of the game. 😉
"If you owned crypto/ blockchain company and were looking to be a sponsor, which sport would first come to mind? Why?"
You guys said:
If i have raised money through ICO i would concentrate on building the product. if my personal wealth i will sponsor tennis, football, cricket & may be olympics. - Product first, peripherals second. Those are sports with wide audiences, great choices! 👍 Basketball/ Basketball, because that is my favorite sport.- A sport with a growing viewership. Good choice! 👀
I believe soccer would be the best sport hence its Multicultural division./ Football, plenty teams and players / Soccer ,its the worlds most popular ,.. while being the worlds most culturally diverse sport./ Any youth football competition/ Football...the highest profile sport/ Football (soccer), since it's the king sport in Europe, Latin America and many other places in the world today!/ Football it's the most popular sport in the world- The biggest sport in the world. Imagine something like a Coinbase advertisement on the field during the World Cup finals. 🤑
Cycling, as my favorite team is sponsored by a bank - 🚴 Little League Baseball. - Hey, it's gotta start somewhere right? 😂 Soccer 🥅 I think soccer ⚽️ is the most watched sport,I know it’s probably tight this year with funds but, we gotta advertise fomo baby 🍼 - No doubt, soccer would be a great choice. Loving the emojis 😂, and thank you for tuning in every day. I always recognize your responses. Hockey right now - Hockey viewership has been slipping in recent years. Not sure if it would be the best choice. 🤔 All sports for people with disabilities - Smart choice, that would be great publicity. 👌🏻 Og it is only to sports i would chose carsports - Motorsport, put that thing in sport (skrrt, skrrt)~ 🎵 On a serious note though, motorsport has a growing viewership too. So it wouldn't be a bad choice IMO. College sports, masses attend, young people, smart people, exposure Soccer, American Football, Basketball, the entire Olympics grames, High school, College sports at all levels, etc - Investing in the young is never a bad thing!
Thank you all for reading! Catch you back here again next week for your daily dose of crypto news! 💙
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