Face yo fears

Your daily newsletter for February 1, 2019
Confront it
“Everything you've ever wanted is on the other side of fear.
- George Addair
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Happy Friday, fam! You made it. 💪 Now go forth and enjoy the weekend to the fullest! But first, don't forget to read today's newsletter. 😀

Today in history (1946), then empress of China, Tzu-hsi, forbade the binding of woman's feet. 👣

In today's newsletter, we will be covering CBOE resubmitting its joint Bitcoin ETF proposal with VanEck and SolidX for SEC approval, crypto exchange Binance enabling crypto purchases with Visa and MasterCard credit cards and South Korea maintaining its ban on domestic initial coin offerings (ICOs). Today, we will also be covering VeChain (VET) in our weekly deep dive! And... we also have a message from a sponsor, NexChange!

Please don't forget to answer the polls down below too! Today, I am seeking feedback on how to improve the newsletter, so do spend some time to leave some feedback! It will be greatly appreciated. 💭 Happy reading! 📚

Carrying on 😣
Down we go again. Over the past 24 hours, total market capitalization dropped from ~$116 billion to ~$112.5 billion, with most coins seeing losses in the ~3-7% range. BTC dominance rose from ~52.9% to ~53.6%, indicative of a stronger preference for the less volatile coins. 

BTC gradually declined throughout the day and dropped from ~$3,490 to ~$3,445 for a ~1.4% loss at time of writing. It is continuing with its downward bearish wedge/ trajectory and is acting in line with its lower highs and lower lows pattern. 📉


Let's try again 🙏🏻
CBOE has resubmitted its joint Bitcoin ETF proposal with VanEck and SolidX for SEC approval. Once again, if it were to be approved, the Cboe BZX Exchange would be allowed to list shares of a Bitcoin ETF trust. 📝

Just earlier this month, the previous proposal was withdrawn due to the U.S. government shutdown ahead of its 27 Feb final decision date. At the time, VanEck CEO Jan van Eck explained that the companies filing the rule change proposal had been in talks with the SEC, but these talks ended when the shutdown began. To avoid a probable rejection due to the closure, the proposal was withdrawn. 🏳️

The rule change proposal has not yet been published in the Federal Register, meaning the clock has not yet begun for the SEC to make a decision. Once the proposal is published, the SEC will have a maximum of 240 days to decide whether to approve or reject the proposal. 

Opening doors 🔑
Crypto exchange Binance has partnered with Israel-based payments processing firm Simplex to enable purchases with Visa and MasterCard credit cards. The exchange now supports credit card purchases for Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and XRP (XRP). 😲 However, not all countries are able to use this service as of yet, such as Iraq, Cuba Afghanistan, Libya and 6 U.S. states like New York, Connecticut, Hawaii, Georgia, New Mexico and Washington.

In exchange for the fiat-crypto service, Simplex charges 3.5% of a transaction with a $10 minimum (flat fee). The daily limit is $20,000 per user, while the monthly max is $50,000 per user. However, Simplex's payment processing is subject to local bank policies and as such, some issuer banks may decline charges on their own terms regardless if users are in a supported jurisdiction. 

According to Binance CEO, Changpeng Zhao, "building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users”. 👌

Don't try me 😠
South Korea's top regulator, the Financial Services Commission (FSC), will not be lifting the ban on domestic initial coin offerings (ICOs) after discovering that some projects have been violating rules. 😔 It continues to consider ICO investing as a "high risk" activity, and has called on the public to exercise caution when doing so. 

Through the results of a survey conducted on 22 local firms that conducted ICOs in foreign countries by the Financial Supervisory Service (FSS), the FSC made the decision to continue with the ban as they found out that some of them set up paper companies in Singapore to circumvent the ICO ban, yet still illegally raised money from Korean investors. Some of them also purportedly did not disclose important information to investors such as company profile and financial statements, and in some cases provided false information.

Blockchain term of the day 🤓 - Block Explorer

An online tool to view all transactions that has taken place on the blockchain, network hash rate and transaction growth, among other useful information.

Special announcement 📢 - Hong Kong Blockchain Week by NexChange Group

NexChange Group is delighted to present Hong Kong Blockchain Week, taking place between 4-8 March, 2019. Set to be the largest blockchain event in Hong Kong, the global blockchain community will converge onto Hong Kong to discuss the latest developments and insights into the ever-evolving, real-world applications of blockchain technology. With Hong Kong being the 'Gateway to China', 'Asia's World City', Hong Kong is well positioned to be a leading international blockchain hub. Hong Kong Blockchain Week continues to play an important role in this endeavour.

Crypto deep dive: VeChain
  • Cryptocurrency: VET 
  • Market Capitalization Rank: 25th ($212 million)
  • Consensus: Proof of Authority (PoA) - the 101 PoA masternodes must disclose their identities such that they are held accountable and incentivized to work in the best interest of the network.
  • Notable Supporters: Draper Dragon, Fenbushi Capital, Breyer Capital, DNV GL, FutureCap
The gist of it ⚙️
  • VeChain was originally a supply chain management focused blockchain platform. It has since rebranded into an enterprise-focused dApp platform for products, services and data. 
  • It seeks to connect blockchain technology to the real world through advanced IoT integration and real world applications.
Why people love it 😘
  • VeChain already has several working dApps on its permissioned blockchain, illustrating adoption potential.
  • VeChain has secured several partnerships with established brands such as PwC, BMW, Renault and DNV GL, which can result in a desirable snowball effect as they might be exposed to the networks of these big brands.
  • The VeChain team is extensive and well equipped. They have a good combination of multinational corporation and crypto expertise.
Why people doubt it 🤔
  • VeChain architecture is not entirely decentralized. They adopt a semi-centralized "balanced approach." This might not enable them to garner the support of decentralization maximalists.
  • Some argue that VeChain has too ambitious a plan for growth. The lack of specific industry focus may come back to bite them as they already face strong competition in both the supply-chain and enterprise dApp space.
  • Current VeChain team may be too big. Some who visited its Shanghai office said that they have over 80+ employees in that location alone. This rapid expansion could lead to some manpower inefficiencies.

Other news 📰
  • According to a company blog post, Fidelity Investments said that its crypto trading and storage platform is in its 'final testing' phase. 👍
  • The New York Department of Financial Services (NYDFS) has granted another Bitcoin ATM operator, Cottonwood Vending LLC, a BitLicense. 🤝
  • Pantera Capital and Coinbase Ventures have participated in a $4.5 million round for Staked, a firm that helps investors back Proof-of-Stake (PoS) cryptos. 💰
Crypto calendar 📅

End Jan - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline
TBA     - SEC's ruling on VanEck Bitcoin ETF application

Catch the CoinMarketCap team at these community events! 🤝

13 Feb       - OKEX OTC Network launch event (Bangkok, Thailand)
25-26 Feb  - Crypto Assets Conference (Frankfurt, Germany)
Poll of the Day
On a scale of 1-10 (10 being most enjoyable), how much do you enjoy reading this daily CMC newsletter? 💭
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How do you think this newsletter can be improved? Share with me in the polls! 😆
What you said
How much do you agree with this statement: "If this bear run persists through 2019, about 90% of crypto projects will run out of funds"

The average vote was 6.8.

"Why or why not?"

Not sure if I agree with 90%, but it sure seems like 2017 was a ramp up of investment based on pure speculation. Now that reality is setting in, a lot of these over-funded and over-valued companies will likely go bankrupt. - I sure hope the more promising ones were able to exercise good budgeting practices. 😔
No business model - Not true, and monetization does not necessarily have to be a priority in the beginning. 😋
Good projects do not require a lot of money.. example Bitcoin, GRIN, Ethereum, Zilliqa & lot others.. they will always find community supportive to make things going.. ico scammers will never be satisfied by any amount of money. so yes 99% of ico scammers will shutdown. I invested in few & sold most to buy Beam & Grin. - Those 2 coins sure have been making waves as of late. 👀
Look at NEM - True. Pity because they did have a good community and strong asian presence. 😔
Cant keep going with no money - Ain't messing w no broke~ 😂
So many are said to be struggling already. - True. This crypto winter really did shed light on a lot of things. 🧐
A good shake-out for projects without any real value. Darwin hard at work. - I would argue its necessary.😔
The bear run won't continue, but the only real losers would be those projects with no real value to begin with. Volatility is much lower than a year ago and volumes will continue to hold. - The bear run could very well persist for a much longer time. Be careful! 👌🏻

Thank you all for reading! Catch you back here again next week for your daily dose of crypto news! 💙
See you again on Monday!
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