“The path of least resistance is the path of the loser.”
- H. G. Wells
Happy Tuesday, CMC fam! I hope you all had a great start to the week and that the Monday blues didn't get to you all yesterday.
Today in history (2007), the late Steve Jobs, then CEO of Apple, unveiled the first iPhone at MacWorld. 📱
In today's newsletter, we will be covering double spending detected on the Ethereum Classic (ETC) network, how Japan’s Financial Services Agency (FSA) may be open to approving crypto exchange-traded funds (ETFs) and how US Subpoenas are becoming a barrier to entry for crypto exchange Kraken. Today, we also have a special message from a sponsor!
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! 📚
Breakthrough required 👊
In the past 24 hours, markets retraced a little after the late run up on Sunday, Total market capitalization slipped form ~$138.3 billion to ~$134.5 billion, and 24 hour volume dropped down to normal levels of ~$14.8 billion. Most cryptocurrencies are seeing losses in the ~2-6% range. 📉
At time of writing, BTC is currently trading at ~$4,000, down ~1.6% from yesterday. On the daily chart, it is still trading above its 21-day EMA line, with an RSI level of ~53. On the weekly chart, BTC challenged its 50-day EMA line yesterday and failed to break through it.
$4,200 appears to be a resistance line for BTC, evidenced by it bouncing off that price point on several occasions in the past weeks. The most immediate test for BTC remains to be whether it is able to break through this ~$3,800 to ~$4,200 consolidation zone. 👀
Crypto exchange Coinbase has suspended all Ethereum Classic (ETC) transactions due to a series of blockchain history reorganizations on the network. Ethereum classic saw more than 100 blocks “reorganized” during a potential 51% attack late Sunday.
SlowMist - a China-based security firm - first alerted users of the peculiar activity occurring on the network, stating that its team was trying to trace the cause of the attack. Blockscout project lead Andrew Cravenho affirmed that although the last recorded reorg attack was seen recently, the reorg may have begun before being noted on Blockscout. 🙈
In response to the deep reorg, crypto exchange Kraken announced in an incident report that it was increasing the number of confirmations required to make an ETC deposit. Bitfly exchange likewise took this action. Poloniex exchange then announced it was disabling ETC wallets, and it does not currently have a firm timeline on when they will be re-enabled.
Preliminary assessment 🧐
Japan’s Financial Services Agency (FSA) may be open to approving crypto exchange-traded funds (ETFs). Bloomberg reports that the FSA is currently ascertaining institutional interest in ETFs that track cryptocurrencies and could lead to them giving the green light. 😊
The report added that Japan’s ruling Liberal Democratic Party will submit a draft legislation by March 2019 which may include amendments to existing financial rules and more self-regulatory financial oversight. It could lead to the classification of ICO tokens as securities,and come become law by 2020. 🤞
However, Bloomberg added that the FSA has now dropped plans to include approval for trading crypto derivatives (e.g. futures) on financial exchanges due to concerns the products would mainly lead to speculation.
Trudging through 😧
Cryptocurrency exchange Kraken has said that US Subpoenas is fast becoming a “barrier to entry” its US exchange business. On Saturday, the exchange tweeted an infographic from its “2018 Transparency Report,” indicating that the firm had received a total of 475 subpoenas in 2018 compared to 160 in 2017, with the majority (315) coming from U.S. agencies.
Many of the inquiries required transactions which could be petabytes of data, and were taxing on the firm's resources as they often require a significant amount of steps back and forth. 💸
If more than half the computer power or mining hash rate on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means that this entity has full control of the network and can negatively affect a cryptocurrency by taking over mining operations, stopping or changing transactions, and double-spending (reusing) coins.
Message from a sponsor: The Conference From Japan 🗾
The first 🎌 "Japan Blockchain Conference (JBC)" was held on June '18 in Tokyo and hosted over 12,000 attendees; a high mark for a conference that was put together in just 2 months.
The event hosted notable keynote speakers such as Yoshitaka Kitao (CEO of SBI Holdings), Charles Hoskinson (Co-founder of Ethereum) and over 100 exhibitors, who all had the opportunity to share their keen insights on the DLT industry.
The firm that made the event a possibility was VCG Crypto Fund & Media Group. Based out of Tokyo, the 60-strong team publishes Japan's most widely-read crypto magazines, and has a monthly circulation of over 100,000 copies. VCG is also responsible for the introduction of the world’s first STO magazine early this year.
The next JBC event is slated for January 30th–31st in beautiful Yokohama, Japan. This time, a whopping 25,000 attendees and 150+ exhibitors are expected to attend, and prominent figures from both Japan and abroad, including Luke Wagman of CoinMarketCap and Genki Oda of BITPoint Japan, will be speaking - it's going to be the retail investor's market dream world. Link up with them on Telegram!
Other news 📰
Two lawmakers from the U.S. state of Colorado has filed a bill to exempt cryptos from securities laws. 📝
Winklevoss twins reaffirm commitment to a BTC ETF in a reddit AMA, expressing optimism towards BTC's longevity. 👍
Regulators have frozen the assets of Australian BitConnect Promoter John Bigatton as part of an ongoing investigation. ❄️
Crypto calendar 📅
Early Jan - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline
14 Jan - Vietnam Blockchain Ecosytem Meetup hosted by Yellowblocks
17 Jan - Asia Blockchain Review (Bangkok)
27 Feb - SEC's ruling on VanEck Bitcoin ETF application
Poll of the Day
On a scale of 1-10 (10 being most confident), how confident are you that at least 1 BTC ETF will be approved by the first half of 2019?💭
Are you keen on investing in a BTC ETF? Share with me in the polls! 😆
What you said
"On a scale of 1-10 (10 being hella cool), how cool is the new Ledger Nano X cold storage wallet?" 💭
The average vote was 6.5. Not convincing 😂.
"Would you buy it?"
52.6% said "Yes". 47.4% said "No".
"Why or why not?"
You guys said:
It is not user friendly - The Nano X will be easier to navigate! I still don't have a hardware wallet and this might be the one to get. - You should at once. Security is something you just don't fool around with. I've met people who have lost everything overnight. 🤦♂️ I have the nano s, each time I try to use it I feel like I'm in an escape room. NOT intuitive..lots of internet searches and additional wallets to get the thing to work. This wallet is cool, support more apps at once so no more deleting & loading apps. I also think this wallet will lot easier to use for new comers, enable crypto in iOS devices, will be great in every phone.. Also guys this will make a good COINMARKETCAP SWAG.. do a giveaway please it will be really cool to own a branded wallet.. especially someone like coinmarketcap.. - I like how we will be able to access our cryptos securely through our phones! It's a great development. As for the SWAG, we are certainly working on it. 😉 Got Nano S - Definitely does the job but, who can say no to cool new features? 😊 Bluetooth I imagine might have some weak areas, and I just bought one🤪 - I'm sure they have that security aspect ironed out. I am not currently in the market for a new Ledger wallet. It’s great that it comes with more storage though. - Fair enough. Already have nano S and Ledger Blue - Time to complete the trifecta 😂
"Do you store your cryptocurrencies in a cold wallet?"
77.8% said "Yes". 22.2% said "No".
I'd like to see more yes'es. I can not over-stress on the importance of storing your crypto in a cold wallet. Exchange wallets are not 100% secure! All it takes is one compromise/ hack and you could lose everything. Go and get a ledger/ trezor today! 👍
Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙
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