“Progress requires setbacks; the only sure way to avoid failure is not to try.”
- Henry Spencer
The good thing about today is that the weekend is here. The bad thing, is that the crypto market took its first big fat 'L' of 2019. Perspective. 🤷♂️
Today in history (1922), insulin was first used in the treatment of diabetes. It was used on a 14-year old boy by the name of Leonard Thompson. 💉 The extract from the injection was too impure and triggered a severe allergic reaction from Thompson. Over the next 12 days, doctors worked day and night to improve the extract and delivered the second dose to Thompson. 😨 This time, it was a complete success and Leonard’s dangerously high blood glucose levels dropped to near-normal levels. 👍
In today's newsletter, we will be covering Bitwise Asset Management filing a new Bitcoin ETF application to the SEC, 14 out of 21 Korean crypto exchanges found to be vulnerable to hacking attacks and Thailand's Ministry of Finance granting digital asset business licenses to 4 crypto firms. In today's weekly deep dive, we will be covering Dogecoin (DOGE). Be sure to check that out too!
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! 📚
Ouch, just when you thought the crypto market was about to gain some bullish traction, we take another few steps back. 🤦♂️
Over the past 24 hours, total market capitalization slipped ~$15 billion to ~$123.3 billion, with most coins seeing losses in the ~9-15% range. The crypto markets fell sharply on both late Wednesday (~$9 billion) and early Thursday (~$6 billion). XRP has for the second time in 2019, overtaken ETH as the second largest cryptocurrency by market capitalization. 📉
BTC, now at ~$3,670 following a ~9.5% decline, also fell below its 21-day EMA support line on the daily chart. Following the rejection at the 50-day EMA line, the inverted head and shoulders pattern it was trading within since end Nov 2018 did not break out to the upside. RSI levels on the daily chart fell from ~52 to ~42, and MACD indicators seem to be signalling the start of a short term bearish run. We could see BTC testing the ~$3,450 support level in the coming days. 🙈
Try and try again 💪
Crypto startup Bitwise Asset Management, provider of crypto asset index and beta funds, has filed a new Bitcoin ETF application to the SEC. ✍️
The firm has filed an initial registration form claiming that it would address the regulatory concerns that prevented approvals on past applications. Unlike past proposals, this ETF will rely on regulated third party custodians to hold its physical BTC. 🤔 It will also track the Bitwise Bitcoin Total Return Index, which measures the value of BTC derived from "large number of cryptocurrency exchanges", plus any “meaningful hard forks.”
According to Bitwise's Global Head of Research, Matt Hogan, Bitwise has spent the past year researching the quality of the crypto trading ecosystem, and "looks forward to discussing those findings with the SEC staff in connection with the filing and listing application." Bitwise's global head of Exchange-Traded Funds, John Hyland, said that Bitwise is "optimistic that 2019 should be the year that a Bitcoin ETF launches.” 👍
Unacceptable standards 😠
From Sept to Dec 2018, the Ministry of Science and ICT, the Korea Internet & Security Agency, and the Ministry of Economy and Finance inspected 21 crypto crypto exchanges across a range of 85 different aspects such as administrative, network, system and operational security, and database backup and wallet management, and recently revealed that only 7 of them got a full pass. 😲 The 7 exchanges were Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco, and Huobi Korea.
According to the Ministry of Economy and Finance, the 14 other exchanges were found to be “vulnerable to hacking attacks at all times because of poor security”. due to “insufficient establishment and management of security system such as basic PC and network security.”
The go ahead 👍
According to Thailand's Securities and Exchange Commission (SEC), the country's Ministry of Finance has granted digital asset business licenses to 4 crypto firms, while rejecting 2 other applications. 👌🏻
The firms include 3 crypto exchanges: Bitcoin Exchange, Bitkub Online, Satang Corporation (Satang Pro), and 1 crypto broker-dealer: Coins TH Co. These 4 firms met the required standards such as having custody systems and know-your-customer (KYC) processes that were consistent and equipped with effective cybersecurity systems.
The 2 firms that were rejected: Cash2coin and SEADEX, will have to cease business operations by 14 Jan and return client assets. 👋
A security that tracks a basket of assets such as stocks, bonds, and cryptocurrencies but can be traded like a single stock. ETFs allow investors to diversify their investments without actually owning the assets tracked by the ETF. Because it tracks a basket of assets, it allows investors to achieve a greater degree of diversification in a quick and simple manner as opposed to buying and selling individual stocks.
In the case of a Bitcoin ETF, the security would be able to gain/ profit from the appreciation of Bitcoin, without having to physically own Bitcoin, worrying about storing it, or having to go through the usually complicated process of buying Bitcoin. One can also short an ETF, so investors will be able to benefit from the price downswings of Bitcoin.
Crypto deep dive: Dogecoin (DOGE)
Market Capitalization Rank: 24th (~$251 million)
Consensus: Proof of Work (PoW)
The gist of it ⚙️
The name "Doge" comes from an internet meme involving a Japanese dog breed known as the Shiba Inu. As you probably have already guessed, the dog is this cryptocurrency's mascot.
Dogecoin started out as a joke on 6 Dec 2013, but somehow amassed a huge worldwide following.
It was created by Billy Markus, a programmer from Portland, Oregon, who hoped the fun cryptocurrency would reach a broader demographic than Bitcoin. Well, he certainly got close...
Why people love it 😘
Similar to Litecoin, Dogecoin can provide some value in terms of transacting small transactions due to its lesser value than Bitcoin. You will pay less in fees (e.g. say vs. Bitcoin) for a small value transaction, making it an appropriate choice for small transactions. Transaction confirmation time on the DOGE network is usually pretty quick.
Its low value allowed it to develop a reputation as an online tipping currency. This retains people in the DOGE community.
Dogecoin has a fun, loyal and arguably thriving community. Just pop by its reddit channel and you'll see what I mean!
Why people doubt it 🤔
Doge's Github has been rather inactive as of late.
As more and more coins (arguably with greater features and efficiencies) come to market, DOGE will find it increasingly difficult to retain its market capitalization ranking. There are too many substitutes.
It's very name could prevent big investors from taking the coin seriously.
Other news 📰
Security token trading platform DX.Exchange that allows the trading of crypto tokens representing shares in a number of Nasdaq-traded firms patched a security vulnerability that allowed anyone to access user authentication tokens. 🤕 The exchange's CEO Daniel Skowronski explained in a statement that "no funds were compromised" and "customer funds were always safe".
China's internet censorship agency, the Cyberspace Administration of China (CAC), published its new “Regulation for Managing Blockchain Information Services”. 📝 It will begin regulating blockchain firms on 15 Feb.
Institutional-focused crypto exchange, Seed CX, is launching a new wallet solution, provided through its settlement subsidiary Zero Hash, that allows on-chain settlement and provides each customer with a unique wallet rather than omnibus wallets. 😲
Crypto calendar 📅
Early Jan - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline
27 Feb - SEC's ruling on VanEck Bitcoin ETF application
Catch the CoinMarketCap team at these community events! 🤝
What are your plans for this weekend? Share with me in the polls! 😆
What you said
"How much do you agree with this statement: "Privacy coins are the future of crypto" 💭
The average vote was 7.
"Why or why not?"
You guys said:
I feel the sec will cause a big stink 🗽 - The party poopers. We need them though... 😂 Timing is too soon - I think there will always be a demand for greater privacy. I think at some point govt financial authorities will take action to make it only a commercial bank business product. - It'll be interesting to see how they will be able to clamp down on it though. 👀 Privacy coins are the safest way for users to make blockchain transactions without their financial details being exposed to the public. - I agree. The key is to find a way to prevent it from facilitating criminal activities. 🤔 Privacy coins will have a good adaptation in coming years, but they will constitute a small percentage of total market cap. OT guys please do share your team twitter links in next mail, it will be nice to follow u guys. Also guys a little bit of how coinmarketcap evolved & the story till now... - Well you can follow us here on Twitter, Instagram and Telegram! 😀 It is important to have your privacy - No doubt. 👍 In a space where we try to control our money and be our own banks, privacy is definitely a very important feature to achieve our goals of freedom, but we can't look down on non privacy coins, since there's a lot of good tech out there. In my opinion, there's space for everyone. - There will be non fungible coins for almost everything, which is what is so awesome about crypto! 😀 We're at a turning point now whether we stay with fiat or crptocurrencies....government and financial institutions around the globe love the idea of digital currency as they then have complete control, the banks can stop run's on their bank's stopping people withdrawing their cash at the stroke of a key on a keyboard, no more long lines of people queuing at ATM's to withdraw their money. The governments, central banks and big financial institutions around the world have been quietly getting their battle plans in place for crypto engagement which ultimately has one outcome (no matter what they tell you) control for them. - It's hard to think of a scenario where they will not have a considerable degree of control. Best we can do is stay in our lanes and hop on for the ride. 😂 Why. You can’t stop the matrix. - 😎
"Are you a fan of privacy coins like Monero (XMR) and Zcash (ZEC)?" 💭
68.2% said "Yes". 31.8% said "No".
Thank you all for reading! Catch you back here again on Monday for your daily dose of crypto news! 💙
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