“Society is always taken by surprise at any new example of common sense."
-Ralph Waldo Emerson
Day 4 of the week! This week has been going absolutely splendid for the crypto space and I don't want it to end T_T. Can't possibly think of how the week can get any better, but then again, this is the crypto space... 🤔
Today in history (2013), scientists at Oregon Health & Science University and the Oregon National Primate Research Center (ONPRC) announced that they were able to successfully clone human stem cells. 👭
In today's newsletter, we will be covering crypto exchange Coinbase's custody service now having a $1 billion AUM, hacked exchange Cryptopia going into liquidation andoperator of cryptocurrency exchange Upbit, Dunamu, investing ~$46 million in 26 blockchain startups over the past year.
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! 📚
Slowing down 🐢
Over the last 24 hours, total market capitalization rose slightly from ~$242.5 billion to ~$246.9 billion, with most coins seeing gains in the ~2-5% range. It seems like more BTC-to-altcoin spillover is occurring. Notable movers of the day include Stellar (XLM) and NEM (NEM), both up ~12.2% and ~27.4% respectively. 📈
BTC is currently trading at ~$7,910, down ~1.5% over yesterday. RSI level on the daily chart is at ~77 (dropping from yesterday's 88), indicative of slowed bullish momentum. It's likely that we will be seeing some bearish correction in the coming days. It is also interesting to note that shorts are at the lowest they've been since mid Feb 2018. It seems that the sharp parabolic rise forced these shorts to abruptly cover their position, possibly further contributing to the uptrend. 😂
Things are picking up ⚡
During an on-stage panel discussion at the recent Consensus 2019 event, Coinbase CEO Brian Armstrong revealed, after being asked by Wall Street Journal reporter Paul Vigna about the status of institutional involvement in the cryptocurrency industry, that their custody service "just crossed $1 billion AUM" after just 12 months. 🤯
He went on to explain that "70 institutions have signed up, adding about $150 million AUM a month". He also shared that while Bitcoin (BTC) remains to be the main asset of interest for institutions, that the interest for other cryptocurrencies is growing, and that these institutions are not content having their funds sit idly in custody, and want "to be staking and voting, doing governance on-chain". 💪
Armstrong and fellow panelist, Union Square Ventures partner Fred Wilson, also shed some light into institutional involvement, in that they aren't necessarily the big players that most are familiar with (e.g. BlackRock, Goldman Sachs etc), but rather are the smaller token and venture funds. However, Armstrong mentioned that about 60% of the trading volume on Coinbase Pro comes from these institutions. Wilson went on to say that right now, there are about "100 token funds in the U.S. and 100 in Asia". 🤔
Cryptopia, the cryptocurrency exchange that was hacked in mid-January, has gone into liquidation and has suspended trading operations. 💸
The Cryptopia website went under maintenance yesterday without any prior message to the public via its social media platforms. Its assigned liquidator, professional services firm Grant Thornton New Zealand, then took it to twitter to announce the news on its liquidation. Cryptopia has since also confirmed the news on both its Twitter and its website, to which numerous customers responded (on the Twitter post) that they have been unable to withdraw funds since the hack, with some also calling for creditors to band together and take legal action against the exchange. 😠
According to Grant Thornton, the estimated ~$16 million hack resulted in a “severe” impact on the company’s trade, and despite the management’s efforts to reduce cost and return the business to profitability, it was decided that liquidation was the best path forward for all stakeholders.
On the aggressive 💰
South Korean fintech firm Dunamu, operator of cryptocurrency exchange Upbit, says it invested ~$46 million in 26 blockchain startups via its subsidiary Dunamu & Partners, over the past year. 💰
Dunamu & Partners was launched in March 2018, with a 3-year plan to invest $100 billion won ($84 million) in the blockchain industry. According to CEO of Dunamu and Partners, Ryan Lee, the firm seeks to contribute to companies that will help drive mainstream adoption of both blockchain-based and mobile fintech services, and those centered around individual content creators, "regardless of their size, stage and region". 🤑
Some of their current investments include stablecoin-based payments network Terra, fintech startup Rainist, gaming software firm Dalcom Soft, Peer-to-peer lending platform Honest Fund, content producer incentivizing blockchain startup Band Protocol, online travel agency Tide Square and blockchain-based investment platform Finhaven.
A situation where a large limit order has been placed to buy when a cryptocurrency reaches a certain value. This can sometimes be used by traders to create a certain impression in the market, preventing a cryptocurrency from falling below that value, as demand will likely outstrip supply when the order is executed.
Other news 📰
Bitcoin startup Blockstream is launching a platform, dubbed Liquid Securities platform, that lets users launch their own tokens. 🔨
According to its job listing career page, Fidelity Investments is seeking talent for its digital asset wing, Fidelity Digital Assets. It has 9 related job listings, ranging from product manager, analyst, senior data engineer and customer service. 👁️
Cypto exchange Huobi has launched a regulated over-the-counter (OTC) trading desk, Huobi OTC Desk, for institutional investors. 😄
Crypto calendar 📅
16 May - U.S. SEC's decision on the NYSE Arca and Bitwise Asset Management's Bitcoin ETF application (decision has been delayed)
21 May - U.S. SEC's initial decision on the VanEck, SolidX and the Cboe BZX Exchange Bitcoin ETF application
"On a scale of 1-10 (10 being maximum FOMO), how hard are you FOMO-ing right now after the recent price run up?"
The average vote was a 5.5.
"Why do you say so?"
I have been a trader for a long time and have been waiting patently in the wings for this👌. - Always nice when things go according to plan. Congratulations! 👏
fully.. you have to spend few crypto season to fully understand & feel the same.. it is very difficult to HODL & take correct decisions when the fomo kicks in. - That is very true. It's much much easier said than done. I believe it's wired in us humans. We somehow tend to grow desensitized quick and always craze for more. Cancelling those lingering thoughts ain't easy. 😔
So, what else is new?? - Nothing much, just some casual crypto parabolic price action. 😴
because it has been a long dry period and hoping it doesn't reverse again. - It certainly has been quite some time. Brings back a lot of memories... hahaha 🤔
I am well positioned and am enjoying the run up. - That's awesome to hear. Enjoy your soon-to-get new lambo! 🏎️
You either believe or you don't ! At this stage there can be no 2 ways about it - as far as I personally am concerned ! However I am not selling my car as a bunch of people did here in NE Brazil during the 2017 bull market ! - Wow that is insane! Always invest what you can afford to lose! Glad you know better not to follow in their footsteps.
no fomo here, just patiently waiting for the next crash so i can buy and hodl more... ain't no sheep up in herrrrre - Heh, you're good. I too find that it's better to stay away from the herd mentality. 👍
I'm right where I want to be.... - Very happy for you mate! 😁
I bought at bottom of market, bought monthly so at current levels I'm in a healthy place. Now it just a question of should I put my crypto into a new miner or should I wait. - You stuck with your strategy, and everything is finally paying off. That is so awesome to hear, and it must be the best feeling ever. 😋
I have a set amount that I purchase every month and stick to it. I have been doing this for almost 3 years now and fount it to be very effective. My advice is to dollar cost average, buy the dips and don't buy the pumps. - I am very very interested to hear what has been your annualized return from adopting this method. Please do share in the next poll! 👍
constantly analyzing my psychology, I need to calmly perceive the surrounding reality .. - Gotta keep fighting that inner devil. 👊
Feels like the beginning of the next long term bull run. - From a price action/ technical analysis standpoint, the charts are definitely looking much healthier than they were a year ago. However, my concern lies in the short run because the recent parabolic run up is a little too fast for my liking. It is usually followed up with a big retracement too. 👀
Quite a lot! Had some budget for crypto stored as cash in a drawer, and was too lazy to pay it in the bank for last couple weeks which cost me good 20-30%... So now the million dollar (maybe not literally!) question is - buy now or wait a bit??? - Hmmm, that's what procrastination does to ya! Personally, I never buy when prices are on such a tear. 🙅♂️
Because I know it’ll happen again...!! - Only a matter of time. 👌🏻
I am a human. I never learn from my mistakes. And I was eagerly awaiting this moment, for at least a year. - Hey don't beat yourself up over it! Markets will always move in cycles and so there will always be another opportunity. I find it great that you can recognize and acknowledge what the problem is, a step most fail to take. 💪 Now all you need to do is take action to rectify it! 👍
Got my portfolio where I want it to be(more or less) so just enjoying the ride 🙂 - Buckle up, it's gonna be a bumpy one to the moon (:
There is still a long way to go before reaching anywhere close to expected stable highs and I expect some retrenchment now before a generally steady bull market in 2019. So regular buys the best strategy for long term. - I adopt the same strategy I use for investing in the stock market too. Just schedule recurring weekly/ monthly buys into index funds and stock index ETFs! 💸
Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙
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