Behind enemy lines

Your daily newsletter for January 15, 2019
Watch out
“Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity.
- Martin Luther King, Jr.
Good morning and happy Tuesday, folks! Try to think of today as thoughtful Tuesday, and do something nice for someone else whether it is a kind gesture or a positive remark. 😊

Today in history (2001), Wikipedia went live. Happy birthday Wikipedia! 🎂 Without you, my college assignments would have been tenfold more difficult. 😅

In today's newsletter, we will be covering Malaysia's Securities Commission (SC) to regulate ICOs as securities offerings, Bakkt acquiring assets from Rosenthal Collins Group (RCG) and crypto exchange Bittrex launching an over-the-counter (OTC) trading desk for over 200 cryptocurrencies.

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! 📚

Danger ranger ☠️
In the last 24 hours, we saw some price recovery following Sunday's sell off. Total market capitalization saw a steep climb from ~$118.8 billion to ~$123.7 billion early on in the day, and most coins are seeing gains in the ~4-10% range. Notable movers of the day include Ethereum (ETH), Tron (TRX) and Augur (REP), each up ~9.3%~10.2% and ~32.6% respectively. 📈

BTC is trading at ~$3,710, up ~3.8% from yesterday. At first glance, this gain looks nice and all, but don't let it fool ya. We are very much still in choppy waters. BTC continues to trade below its 50-day EMA line on the weekly chart, after being rejected by it during last week's run up. Additionally, BTC is trading below its 21-day EMA line on the daily chart after failing to break to the upside of its inverted head and shoulders pattern it was trading within since end Nov 2018. 🤦‍♂️

On a side not, a possible explanation for ETH's run up is because of the impending Constantinople hard fork, set to occur on Jan 16. The fork will bring about a reduction in the mining reward per block (from 3 ETH to 2 ETH), aka "Thirdening", among other changes to the ETH protocol. This update essentially reduces the inflation rate of ETH, meaning ETH becomes more scarce. 🤔


Dawn ☀️
According to an official notice, Malaysia's Securities Commission (SC) will bring the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 into force on 15 Jan, which entails token offerings and exchanges requiring approval from the SC before starting operations and complying with both securities laws of the country and anti-money laundering and counter-terrorism financing (AML / CFT) rules. 🙌

The SC also said that it will work with the central bank to issue a full legal framework on digital assets by end of the Q1 2019, explaining that it will "establish criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection.” 👀

According to Malaysia's Finance Minister, Lim Guan Eng, "digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.” 👍

Proactive 🏃
According to an official blog post, Bakkt, the soon-to-be launched open platform by the Intercontinental Exchange (ICE) for regulated digital assets services including trading and warehousing, is acquiring "certain assets" from Rosenthal Collins Group (RCG). 💰

Rosenthal Collins Group (RCG), is an independent futures commission merchant that has been in operation for 96 years. The acquisition will help Bakkt improve its "risk management and treasury operations" and "AML/KYC and customer service operations". 💪

According to Bakkt's CEO, Kelly Loeffler, the acquisition shows that Bakkt is "not standing still as we (they) await regulatory approval by the CFTC for the launch". Bakkt expects the acquisition transaction to be finalized in Feb. 

Game changer 😀
Crypto exchange Bittrex has launched an over-the-counter (OTC) trading desk that will provide approved customers with “guaranteed pricing” for major trades (>$250,000) for close to 200 cryptocurrencies. 🤯

Bittrex's CEO, Bill Shihara, believes that the new service is a "game-changing trading option" as it has "one of the most extensive selections of digital assets of any OTC desk available".
 
Bittrex now joins other U.S.-based crypto exchanges in offering OTC trading desks and services, such as Coinbase and Poloniex. 👍

Blockchain term of the day 🤓 - Over-The-Counter (OTC)

Over-The-Counter is defined as a transaction made outside of an exchange, often peer-to-peer through private trades and facilitated through direct transactions. In jurisdictions where exchanges are disallowed or where amounts traded will move the markets, traders will go through the OTC route. OTC trades allow involved parties to "lock-in" their prices, such that any pricing uncertainty is ruled out. 

Other news 📰
  • HSBC, one of the largest banks and financial services company in the world, recently announced that it had settled more than $250 billion in forex trade transactions using distributed ledger technology (DLT). 💲
  • LedgerX, the first CFTC-regulated cryptocurrency asset management platform to offer physically-settled Bitcoin derivatives, is launching the LedgerX Volatility Index (LXVX), an index that will track the expected volatility of Bitcoin, and will draw data from its regulated Bitcoin options. 📈
  • Crypto startup and stablecoin issuer, TrustToken, has launched a new address management feature for exchanges to improve wallet management. 👌🏻
Crypto calendar 📅

Mid 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! 🤝

16 Jan - Vietnam (Hanoi) Community Meetup organized by Kyber Network
17 Jan - Asia Blockchain Review (Bangkok) - 7- 9PM at "SPACES", Chamchuri Square, 24th floor
Poll of the Day
How much do you agree with this statement: "The launch of Bakkt will trigger the next crypto bull run" 💭
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Why do you think so? Share with me in the polls! 😆
What you said
"How much do you agree with this statement: "Airdropping is the most fair initial crypto distribution method"

The average vote was 6.7. While airdropping may be a great way to achieve a wider distribution of coins, because users get the tokens for free, the price stability of the coin right after may not be the most stable. 

"Why do you think so?"

You guys said:

If projects allocate somewhere around 10% of tokens for airdrop, also distributed to small number of people so that it can have value, like ONT, Dfinity then it does make sense. Initially teams do require money so a good percentage in token sales is also required. - Well said! It's all about good token economics. 👍
There is no advantage for behavior - Airdropping can achieve a wider distribution of coins and a fair start than to say, a non-capped ICO. 
I’m not too savvy but I think it helps with whales 🐳 buying up huge chunks and be able to manipulate the market - This would be more prevalent in those seed funding or private sale rounds where whales buy in at exorbitantly low prices and dump on the ICO participants or secondary market buyers upon token release. 😣
I never was found of the pic and choose. - Sounds like airdropping is perfect for ya! 😀
So that I can take part - Low barrier to entry/ participate. 👍
An airdrop accomplishes very little of anything. - Not entirely true. Airdropping can serve as a great marketing tool, and achieve wider distribution if done properly. 👌🏻
Open and transparency - Yep!

Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙
See you again tomorrow!
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