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Crypto Market Recoveries

By | News | No Comments

📝 Bakkt Ready To Test Bitcoin Futures This July

MONDAY, MAY 13, 2019

Bakkt, the crypto initiative by Intercontinental Exchange (ICE) which was first announced August 2018 is ready to launch testing for bitcoin futures trading July 2019. In their Medium post, Bakkt announced they will be working closely with ICE Futures U.S. Exchange, ICE Clear U.S. clearinghouse to ensure a successful launch as well as the United States Commodity Futures Trading Commission to be complaint with federal regulations. 

SOURCE: COINTELEGRAPH


🚦Binance To Reopen Deposits & Withdrawals On Tuesday

MONDAY, MAY 13, 2019

Cryptocurrency exchange, Binance, will resume deposit and withdrawal services this Tuesday. The platform suffered a major hack on May 7, resulting in the theft of 7,070 bitcoins (worth $40 million) from the exchange’s hot wallets. In their official announcement, CEO, Changpeng Zhao (CZ), shared the team has been working on adding a number of advanced security features with more details to be provided shortly. 

SOURCE: COINDESK


🐋 Blockchain Watch

MONDAY, MAY 13, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Investigating Crypto Exchange Price & Volume Patterns

By | Coinscious Lab, Data Analytics, Exchange Report | No Comments

Overview

Released monthly, this report aims to analyze and characterize cryptocurrency exchanges according to their volume for the past month, this time from February 16, 2019 to March 16, 2019.

Our universe of analysis uses public exchange data from 18 of some of the most popular exchanges1 (see Figure 1). Through analysis of the recent historical volume and price of individual exchanges we provide a framework for analysis where investors can identify better or fairer exchanges.

Using daily volume data from some of the most widely used cryptocurrency exchanges, we were able to cluster exchanges into three groups based on similarity in volume trends. Some of our findings include the following:

  • OKEx and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Although OKEx has reported the biggest traded volume between February 16, 2019 to March 16, 2019, PCA analysis separates it from the other top exchanges (i.e. Binance and HuobiPro), and shows a low correlation with the market in terms of traded volume.

Performance

Figure 1. Total monthly volume, mean daily volume, max daily volume, mean hourly volume and max hourly volume for each exchange from February 16, 2019 to March 16, 2019 in USD. Monitor exchange performance daily through our Market & Trading Strategy Dashboard: dashboard.coinscious.io

According to the public exchange data, OKEx has reported the biggest mean daily and hourly volume for the past month.

In the past month, OKEx took first place with a total of $28 billion traded between February 16 to March 16, compared to $25 billion for ZB (2nd) and $20 billion for Binance (3rd) (see Figure 1).

We chose ETH/BTC trading pair to analyze exchange volumes in more depth. ZB traded volume for ETH/BTC was the highest overall, following the trend described in our previous Exchange Report. However, OKEx took first place on March 5 when its volume changed from $78 million to $107 million in a single day. It remained at the top spot until March 12, when its volume dropped back down to $39 million; ZB retook first place. Interestingly, according to BeinCrypto, on March 5 ethereum’s price began to increase rapidly from $130 throughout the earlier part of the day, and reached a daily highly of $143.83 on March 6 [1].

Figure 2. ETH/BTC pair daily volume for each exchange from February 16, 2019 to March 16, 2019 in USD.

Observations

The cryptocurrency market was on an uptrend starting from the morning of Wednesday, April 3, 2019 – the price of BTC went up from $4,000 to $4,800. In fact, because of the BTC pump, we observed that there were huge volume changes for all exchanges except Fcoin; their volume changes remained low.

Figure 3a. Top 10 crypto exchange volume changes on April 3, 2019.

As you can see in Figure 3a, the top 10 exchanges have 1-day volume changes ranging between 73.35% to 315.18%. However, Fcoin is the only exchange with a much lower volume change of 9.25%.

Three days later, on the morning of Saturday, April 6, 2019, the market started to slow down and became tranquil. Again, we can observe this from 1-day volume changes in Figure 3b, where most of the exchanges’ volume changes decreased to around 22-60%. Nevertheless, Fcoin and HitBTC volume changes were up by 18% and 19% respectively.

Figure 3b. Top 10 crypto exchange volume changes on April 6, 2019.  

These strong indications reveal that Fcoin (and possibly HitBTC) is likely faking its volume. The next section delves into a deeper analysis and looks at which specific exchanges violate volume trends in comparison to all exchanges overall.

Analysis

In order to categorize exchanges and investigate their trends during the past month, we performed a dimensionality reduction analysis using PCA2 for ETH/BTC pair daily volume. By plotting crypto exchanges according to their first two principal components, we identified a cluster and some outliers (see Figures 3a and 3b). The two first principal components explain more than 80% of the variance in our data set and the relative position along the x- and y-axes indicate similarities between exchanges in terms of traded volume. Thus, exchanges clustered together present similar volume trends, while outliers, namely Okex, HuobiPro, Binance, Fcoin, HitBTC, and ZB, show trends that diverge from the market mean.

If we zoom in on the market mean, we can identify subgroups of exchanges that are closely related inside the market mean (Figure 3b).

Figure 3a. PCA Volume analysis for ETH/BTC. The biplot, where the two main principal components are used to represent the exchanges allows us to identify clusters or groups of exchanges that might be correlated according to volume.

Figure 3b. PCA Volume analysis excluding outliers in the first analysis.

To understand the meaning of the two principal components and characterize the outliers, we decided to look at correlation between exchanges. We used volume for the ETH/BTC pair to identify a general trend in the market and determine whether exchanges follow or are against the trend (see Figure 5). Although most exchanges show a similar trend (that is, they follow a similar daily volume trend), OKEx, Bitflyer, BigOne and HitBTC show a daily volume trend that goes against the market. Interestingly, ZB and Zaif follow the mean market trend this time. Also note that compared to the PCA biplot using daily volume data from January 16 to February 16, OKEx and ZB have swapped positions (see Figure 3 from the previous Exchange Report)

Figure 5a. Top 5 negative volume correlations

Figure 5b. Top 5 positive volume correlations

Figure 6. Daily volume correlations between exchanges from February 16, 2019 to March 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

OKEx, in particular, shows negative correlations with all exchanges except for HitBTC and HuobiPro. This suggests that OKEx, Bitflyer, HitBTC and BigONE are acting against the market.

Again, Upbit and Bittrex show the highest correlation for all exchange pairs, suggesting that they share the same order book [2]. This was also noted in our previous Exchange Report.

To explore what other factors could contribute to the clustering in different groups after Volume PCA, we calculated the correlation between ETH/BTC price and volume for every exchange pair (see Figure 6).

Figure 7. Daily price-volume correlations between exchanges from February 16, 2019 to March 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

OKEx and HitBTC stand out as exchanges with the highest negative correlation between ETC/BTC price and volume for all exchanges. This shows that not only their volume, but also their ETH prices go against the market. While most exchanges show a positive trend (higher volumes associated with higher prices), OKEx, HitBTC, HuobiPro and BigOne show a negative trend (higher volumes associated with lower prices, and vice versa).

Summary

Using daily volume data from 18 of some of the most widely used cryptocurrency exchanges and principal component analysis, we identified three clusters of exchanges sharing similar volume trends. We mainly looked at volume correlations and price-volume correlations. Our findings include:

  • Okex and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Although Okex has reported the biggest traded volume in the past month, PCA analysis separates it from the other top exchanges (i.e. Binance and HuobiPro) and shows a low correlation with the market in terms of traded volume.

Here, these findings are simple observations of possibly correlated variables. We share this from the point-of-view of something to look out for. Overall, our exchange analysis has proven useful to study patterns of volume and price activity in the market and identify potential manipulation, that could be confirmed using blockchain data.

Footnotes

1 The scope of this report does not cover futures contracts.

2 PCA is a technique that finds underlying variables that best differentiates your data points. In this article, we visualize and analyze along the two dimensions which the data points varies the most (see Appendix B).

APPENDIX A: Methodology

The daily volume of cryptocurrencies in USD at 4:00 PM EST from February 16, 2019 to March 16, 2019 was used for our volume ranking. Daily volume and price for the pair ethereum_bitcoin was used for the same time period for the PCA analysis and correlation analysis. Price and volume were normalized such that its distribution had mean value 0 and standard deviation of 1 in order to perform principal component analysis and calculate price-volume correlations. In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX B: Terminology

  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.
  • PCA: A statistical procedure that uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components, in order to maximize the explained variance.

References

[1] T. (2018, December 11). Binance Losses Top Cryptocurrency Exchange Position to OKEX and ZB.Com. Retrieved from https://coingape.com/

[2] Lavere, M. (2019, February 13). Ethereum (ETH) Mining Reward Hits Lowest Ever.  Retrieved from https://ethereumworldnews.com/

[3] Bitking74. (2017, October 24). UPbit and Bittrex are sharing the same order book. This is a win win for both sides: bring some Korean liquidity to Bittrex, also the Korean users start with nicely filled order books from Bittrex. Go NEO. Neotrader [Online forum]. Retrieved from https://www.reddit.com/r/Neotrader/comments/78fztu/upbit_and_bittrex_are_sharing_the_same_order_book/

[4] J. (2018, September 18). Chinese Investor Loses 700,000 Yuan Due To Fcoin Crypto Manipulation. Retrieved from https://www.coindaily.co/

[5] Sillers, A. (2018, September 12). The evidence of OKex’s fraudulent behavior, which may point to HitBTC as well. Retrieved from https://www.chepicap.com/

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Crypto Cheers & Controversies

By | News | No Comments

⚖ FinCEN Penalizes Its First P2P Currency Exchanger

FRIDAY, APRIL 19, 2019

For the first time, the United States Financial Crimes Enforcement Network (FinCEN) has penalized a peer-to-peer (P2P) cryptocurrency exchanger for breaking anti-money laundering (AML) rules. FinCEN announced that the individual, Eric Powers, operated an unregistered money services business, did not have any written policies and procedures for compliance to the Bank Secrecy Act (BSA), and failed to report and suspicious transactions. 

SOURCE: THEBLOCKCRYPTO


?? Coinnest Shuts Down

FRIDAY, APRIL 19, 2019

Coinnest, South Korea’s third largest cryptocurrency exchange, announced it will be officially closing down. The decision comes as a result of the exchange struggling to cope with changes in the cryptocurrency and blockchain industries. They advised users will need to withdraw any funds on its platform by April 30

A few controversies the exchange experienced dealt with in the past year may be cause for its shut down. This January, the exchange reportedly lost $5 million worth in bitcoin and other digital assets, due to a mistaken airdrop. Last year, a top-level executive from Coinnest were arrested by Korean law enforcement agents and later convicted for fraud. 

SOURCE: COINDESK


? Self-Proclaimed Bitcoin Creator Sues Podcaster for Libel

FRIDAY, APRIL 19, 2019

Craig Wrightthe self-proclaimed creator of bitcoin, has sued podcaster Peter McCormack, of What Bitcoin Did, for libel. Wright accuses McCormack of denying he is Satoshi Nakamoto and is seeking nearly $130,000 in damages.

SOURCE: CCN


? Bakkt Eyes New York Licence For Crypto Custody

THURSDAY, APRIL 18, 2019

Intercontinental Exchange (ICE) –  the owner of the New York Stock Exchange – is reportedly eyeing a New York license for its long-delayed crypto exchange Bakkt. The launch of Bakkt has been delayed by over five months due to scepticism from the Commodity Futures Trading Commission (CFTC) over concerns of how clients’ tokens, linked to bitcoin futures, will safely be stored.

SOURCE: BLOOMBERG


⛓ Binance Chain Launches

THURSDAY, APRIL 18, 2019

Binance has officially launched its mainnet Binance Chain. The cryptocurrency exchange announced it will activate its native token, BNB, on the new network on April 23, allowing token holders to migrate their balances. In order to maintain a constant supply on both networks, old ethereum-based tokens will be destroyed as new BNB tokens are created on Binance Chain.

SOURCE: COINTELEGRAPH


⚖ Winklevoss Brothers Settle $26M Bitcoin Lawsuit

WEDNESDAY, APRIL 17, 2019

Cameron and Tyler Winklevoss have finally settled their lawsuit with Charlie Shrem, a bitcoin supporter and entrepreneur. Shrem claimed the Winklevoss twins owed him $26 million dollars worth of bitcoin. The U.S. District Court for the Sourthern District of New York announced a settlement has been reached by both parties. Both parties will have the right to reopen the case and proceed the trial within 30 days. 

SOURCE: BITCOINEXCHANGEGUIDE


? Coinbase Expands Crypto-to-Crypto Services to 11 Countries

WEDNESDAY, APRIL 17, 2019

U.S.-based cryptocurrency exchange, Coinbase, introduced its Coinbase Pro trading platform to 11 more countries in Latin America and Southeast Asia including: Argentina, Mexico, Peru, Colombia, Chile, India, Hong Kong, South Korea, Indonesia, the Philippines, and New Zealand.  The company announced that crypto-to-crypto trading is now available to users in 53 countries. 

SOURCE: COINTELEGRAPH


?? Rakuten Opens Crypto Wallet Registration

WEDNESDAY, APRIL 17, 2019

Japanese e-commerce giant, Rakuten, has started accepting account registrations for its upcoming cryptocurrency wallet, Rakuten Wallet. The company announced that users who have an account with Rakuten Bank or who already have a Rakuten member ID can sign-up prior to the official trading launch this June. 

SOURCE: COINGEEK


❌ Kraken Delists Bitcoin SV Following Community Poll

TUESDAY, APRIL 16, 2019

Kraken, the U.S.-based cryptocurrency exchange, set up a Twitter poll yesterday, asking its users whether it should delist bitcoin SV. Voters took to the polls and it was a 71% majority in favour of delisting the asset. Kraken’s decision follows in the footsteps of Binance, who dropped the coin earlier this week due to its founder’s “antiethical behaviour.”

SOURCE: COINTELEGRAPH


? USDT Launches on Tron Network

MONDAY, APRIL 17, 2019

Tether has begun issuing its USD-pegged stablecoin, USDT, on the Tron‘s TRC-20 protocol. The development is an upgrade from the OMNI protocol-based USDT. Existing users of USDT can directly convert their tokens to USDT-Tron by contacting Tether or through exchanges. The network intends to allow zero fee transactions for the new coin.

SOURCE: COINGAPE


❌ Binance Delists Bitcoin SV (BSV)

MONDAY, APRIL 17, 2019

Changpeng Zhao (CZ), the CEO of cryptocurrency exchange, Binance, has announced it is delisting bitcoin SV (BSV) starting April 22. The decision was made due to controversy around BSV’s founder, Craig Wright, who’s proclaimed he is the pseudonymous creator of bitcoin, Satoshi Nakamoto. Wright has been unrelenting on Twitter, attacking users who refute his claim. CZ earlier warned Wright that he would delist the altcoin if he did not change his behaviour; Wright did not heed his threats.  

SOURCE: COINDESK


?  Blockchain Watch: Oh Whale

FRIDAY, APRIL 19, 2019
THURSDAY, APRIL 18, 2019
WEDNESDAY, APRIL 17, 2019
TUESDAY, APRIL 16, 2019
MONDAY, APRIL 16, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Investigating Disruptive Patterns of Crypto Exchanges

By | Coinscious Lab, Data Analytics, Exchange Report | No Comments

Overview

Released monthly, this report aims to analyze and characterize cryptocurrency exchanges according to their volume for the past month, this time from January 16, 2019 to February 16, 2019.

Our universe of analysis uses public exchange data from 18 of some of the most popular exchanges1 (see Figure 1). Through analysis of the recent historical volume and price of individual exchanges we provide a framework for analysis where investors can identify better or fairer exchanges.

Using daily volume data from some of the most widely used cryptocurrency exchanges, we were able to cluster exchanges into three groups based on similarity in volume trends. Some of our findings include the following:

  • Fcoin and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Not only does volume and price seem to go against the market, but returns and volume are positively correlated only for Fcoin and HitBTC, while returns and volume are negatively correlated for the rest of exchanges.
  • Although ZB has reported the biggest traded volume in the past month, ZB volume trend patterns were different from the other top exchanges (Binance, HuobiPro, and OKEx). Generally, it showed a low correlation with the market in terms of traded volume.
  • It is also interesting to note that our analysis (Figure 4b. Top 5 positive correlations) accidentally reveals a shared order book between Upbit and Bittrex.

Performance

Figure 1. Total monthly volume, mean daily volume, max daily volume, mean hourly volume and max hourly volume for each exchange from January 16, 2019 to February 16, 2019 in USD. Monitor exchange performance daily through our Market & Trading Strategy Dashboard: dashboard.coinscious.io

According to the public exchange data, ZB has reported the biggest mean daily and hourly volume for the past month. Binance reportedly lost the crown as the king of cryptocurrency by trade volume on December 11, 2018 to be replaced by OKEx, who held the 1st place at that time, while ZB held 2nd [1].

In the past month, ZB has taken the first spot, with a total of 16 billion dollar traded between January 16th to February 16th, compared to 14 billion USD for OKEx (2nd) and Binance (3rd) (see Figure 1).

We then chose ETH/BTC pair to look at the volume more closely and analyze it in more depth. ZB traded volume for ETH/BTC is low during the whole period, with Binance, HuobiPro and OKEx as top exchanges. However, there was a rapid surge on February 11th, when volume changed from $500,000 USD to $67 million USD in one day, and it has remained high since then (see Figure 2). That same day,  according to Etherscan, daily mining rewards for Ethereum fell to their lowest recorded levels [2].

Figure 2. ETH/BTC pair daily volume for each exchange from January 16, 2019 to February 16, 2019 in USD.

Analysis

In order to categorize exchanges and investigate their trends during the past month, we performed a dimensionality reduction analysis using PCA2 for ETH/BTC pair daily volume. By plotting crypto exchanges according to their first two principal components, we could identify a cluster and some outliers (see Figure 3). The two first principal components explain more than 80% of the variance in our data set and the relative position along the x and y axis indicates similarity between exchanges in terms of traded volume. Thus, exchanges clustered together present similar volume trends, while outliers, namely Okex, HuobiPro, Binance, Fcoin, HitBTC, and ZB, show trends that diverge from the market mean.

Figure 3. PCA Volume analysis for ETH/BTC. The biplot, where the two main principal components are used to represent the exchanges allows us to identify clusters or groups of exchanges that might be correlated according to volume.

To understand the meaning of the two principal components and characterize the outliers, we decided to look at correlation between exchanges using volume for the ETH/BTC pair, to identify a general trend in the market and whether exchanges follow or are against the trend (see Figure 5). Although most exchanges show a similar trends (this is, they follow a similar daily volume trend), Bitflyer, ZB, Zaif, Fcoin, and HitBTC show a daily volume trend that goes against the market.

Figure 4a. Top 5 negative volume correlations

Figure 4b. Top 5 positive volume correlations

Figure 5. Daily volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Fcoin in particular shows negative correlations with all exchanges except for HitBTC. This suggests that Bitflyer, ZB, Zaif, Fcoin, and HitBTC are acting against the market. Moreover, it’s interesting to see that Bitflyer, ZB, Zaif, Fcoin, and HitBTC are all based in Asian countries.

On the other hand, Upbit and Bittrex show the highest correlation for all exchange pairs. This similarity in volume is in line with reports suggesting that they share the same order book, although further analysis of blockchain data will be needed to confirm these claims [3].  

To explore what other factors could contribute to the clustering in different groups after Volume PCA, we calculated the correlation between ETH/BTC price and volume for every exchange pair (see Figure 6).

Figure 6. Daily price-volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Again, Fcoin stands out as the exchange with a highest negative correlation between ETC/BTC price and volume for all exchanges showing that, not only the volume, but ETH price is also against the market3. While most exchanges show a positive trend, with high volumes associated to higher prices, Fcoin shows a negative trend, where higher volumes during the analyzed period are associated with lower prices and vice versa.

This raised suspicions that Fcoin might be manipulating price and volume, especially for the pair that we have analyzed (ETH/BTC). Fcoin has been accused of manipulation in the past. In September, a Chinese investor filed a complaint against the exchange, which presumably induced sudden drops in price through manipulation after investing huge amounts in Fcoin token [4].

Finally, if we look at the correlation between returns (instead of price) and volume for ETH/BTC (Figure 7), HitBTC and Fcoin are again the exchanges going against the general trend. High returns in HitBTC and Fcoin are associated with an increase in volume, while high returns elicit a decrease in volume for the rest of exchanges (negative correlation between returns and volume). Interestingly, HitBTC has also been accused of volume manipulation [5].

Figure 7. Daily returns-volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Summary

Using daily volume data from 18 of some of the most widely used cryptocurrency exchanges and principal component analysis, we identified three clusters of exchanges sharing similar volume trends. We mainly looked at volume correlations and price-volume correlations. Our findings include:

  • Fcoin and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Not only volume and price seem to go against the market, but returns and volume are positively correlated only for Fcoin and HitBTC, while returns and volume are negatively correlated for the rest of exchanges.
  • Although ZB has reported the biggest traded volume in the past month, PCA analysis separates it from the other top exchanges (Binance, HuobiPro, and OKEx) and show a low correlation with the market in terms of traded volume.
  • It is also interesting to note that our analysis (Figure 4b Top 5 positive correlations) accidentally reveals a shared orderbook between Upbit and Bittrex

Here, these findings are simple observations of possibly correlated variables. We share this from the point-of-view of something to look out for. Overall, our exchange analysis has proven useful to study patterns of volume and price activity in the market and identify potential manipulation, that could be confirmed using blockchain data.

Footnotes

1 The scope of this report does not cover futures contracts.

2 PCA is a technique that finds underlying variables that best differentiates your data points. In this article, we visualize and analyze along the two dimensions which the data points varies the most (see Appendix B).

3 Here, the market is refers to the trend of majority of the exchanges.

APPENDIX A: Methodology

The daily volume of cryptocurrencies in USD at 4:00 PM EST from January 16, 2019 to February 16, 2019 was used for our volume ranking. Daily volume and price for the pair ethereum_bitcoin was used for the same time period for the PCA analysis and correlation analysis. Price and volume were normalized such that its distribution had mean value 0 and standard deviation of 1 in order to perform principal component analysis and calculate price-volume correlations. In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX B: Terminology

  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.
  • PCA: A statistical procedure that uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components, in order to maximize the explained variance.

References

[1] T. (2018, December 11). Binance Losses Top Cryptocurrency Exchange Position to OKEX and ZB.Com. Retrieved from https://coingape.com/

[2] Lavere, M. (2019, February 13). Ethereum (ETH) Mining Reward Hits Lowest Ever.  Retrieved from https://ethereumworldnews.com/

[3] Bitking74. (2017, October 24). UPbit and Bittrex are sharing the same order book. This is a win win for both sides: bring some Korean liquidity to Bittrex, also the Korean users start with nicely filled order books from Bittrex. Go NEO. Neotrader [Online forum]. Retrieved from https://www.reddit.com/r/Neotrader/comments/78fztu/upbit_and_bittrex_are_sharing_the_same_order_book/

[4] J. (2018, September 18). Chinese Investor Loses 700,000 Yuan Due To Fcoin Crypto Manipulation. Retrieved from https://www.coindaily.co/

[5] Sillers, A. (2018, September 12). The evidence of OKex’s fraudulent behavior, which may point to HitBTC as well. Retrieved from https://www.chepicap.com/

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Ready, Set, Crypto

By | News | No Comments

⚖ Mt. Gox Close to Settling Creditors’ Accounts

FRIDAY, MARCH 22, 2019

Appointed trustee, Nobuaki Kobayashi, of the now defunct cryptocurrency exchange, Mt. Gox, issued a statement advising that those affected by the crash may see a decision very soon on their reimbursement plan. The expected settlement will be available in cryptocurrency or cash. Kobayashi has approved claims for 802,521 BTC (worth $3,233,256,500), 792,296 BCH ($124,953,000), $38,165,664 in USD and other fiat currencies as stipulated in this document.

SOURCE: CRYPTOVEST


✂  BlockFi Cuts Interest Rates Paid to 2% For Its Large Accounts

FRIDAY, MARCH 22, 2019

A few weeks after launching, BlockFi, the cryptocurrency lending startup, has just changed the terms of their interest-bearing deposit account. The company stated in their official blog post that starting April 1, 2019 any accounts with more than 25 BTC or 500 ETH, they will only pay 2% on the amount deposited instead of the originally advertised 6%. Zac Prince, CEO and founder, advised the change is due an unexpected and overwhelmingly large demand from institution clients to deposit more than one million dollars worth of cryptocurrency. BlockFi raised $25 million in the last two weeks alone.

SOURCE: COINDESK


?Bayer Crop Science Partners With ConsenSys’ BlockApps

FRIDAY, MARCH 22, 2019

Pharmaceutical giant, Bayer, and its German-based agricultural division, Bayer CropScience, have teamed up with startup BlockApps, backed by ConsenSys. The partnership was said to have begun early 2018 and they’ve been working on a number of blockchain initiatives to improve operation and the industry. Bayer CropScience was formerly known as Monsanto, the highly controversial agricultural company, before its acquisition.

SOURCE: COINTELEGRAPH


⚡ Huobi Global & OKEx Supports Tron-based USDT

THURSDAY, MARCH 21, 2019

Major cryptocurrency exchanges, Huobi Global and OKEx, have separately announced that they will be supporting the TRC20-based USDT stablecoin, USDT-TRON,launched by TRON and Tether. The new token will be operable with all Tron-based protocols and decentralized applications, improving liquidity in the ecosystem.

SOURCE: COINTELEGRAPH


? Square Hiring Crypto Engineers

THURSDAY, MARCH 21, 2019

CEO of Twitter and Square, Jack Dorsey, announced Square Crypto is seeking to hire three to four cryptocurrency engineers and one designer to build its upcoming crypto ecosystem. Dorsey has become a strong public proponent of bitcoin and cryptocurrency in the recent months. This initiative brings further optimism to the cryptocurrency community and the blockchain industry.

SOURCE: CCN


⛔ CBOE Discontinues Bitcoin Futures

WEDNESDAY, MARCH 20, 2019

The Chicago Board Options Exchange (CBOE), the first exchange to list bitcoin futures, has decided to stop listing the very same product. CBOE stated that it has not fully closed the door on cryptocurrency, but does not intend to list additional bitcoin futures for trading at the moment due to decreased demand.

SOURCE: FORBES


? Coinmarketcap Launches Crypto Indices on Nasdaq, Bloomberg and More

WEDNESDAY, MARCH 20, 2019

CoinMarketCap, announced it will launching two cryptocurrency benchmark indices on Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv), Germany’s Börse Stuttgart, and its own platform. The indices cover the top 200 by market capitalization. The first index, CMC Crypto 200 Index (CMC200), includes bitcoin and covers more than 90% of the cryptocurrency market. The second index, CMC Crypto 200 ex BTC Index (CMC200EX) does not include bitcoin, in order to track market performance without its influence. 

SOURCE: COINDESK


⚡ Huobi Launches Token Sale Platform

WEDNESDAY, MARCH 20, 2019

Singapore cryptocurrency exchange, Huobi Global, announced on its blog that Huobi Prime, a dedicated token sale platform. The new platform is geared towards both large and small investors and allows individuals access to new altcoin tokens before they appear on major exchanges. The first project to launch is TOP and will take place on March 26, 2019

SOURCE: COINTELEGRAPH


? Cryptopia’s Trading Service Resumes After Hack

WEDNESDAY, MARCH 20, 2019

New Zealand cryptocurrency exchange, Cryptopia, announced it is resuming its trading service after its hack mid-January. An estimated of 9.4% of the exchange’s total holdings were stolen. Currently, 40 trade pairs have been evaluated as secure and this list will continue to grow as Cryptopia clears more coins. See the full list: here

SOURCE: COINDESK


?? Purchase Bitcoin Down Under With Binance Lite

TUESDAY, MARCH 19, 2019

Cryptocurrency exchange, Binance, has expanded its Binance Lite fiat gateway to Australia. 1,300 newsagent stores will be ready and allow customers to buy cryptocurrency with regular fiat money. In order to use this service, customers will need to pass account verification, including Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

SOURCE: THENEXTWEB


?? Switzerland’s Largest Online Retailer Accepts Bitcoin

TUESDAY, MARCH 19, 2019

Digitec-Galaxus, Switzerland’s “Amazon”, is now accepting bitcoin (BTC) and other cryptocurrencies as payment. Co-founder & Chief Innovation Officer, Oliver Herren, says the company’s move to accept this form of payment method is to target a more tech-savvy audience and position itself as a forward-thinking company. The large online retailer has partnered with Coinify to process all cryptocurrency transactions. 

SOURCE: BITCOINIST


? Fortune 500 Company Accepts Crypto Payments

TUESDAY, MARCH 19, 2019

Fortune 500 company Avnet, one of the largest electronic components distributors worldwide, announced it will now accept bitcoin (BTC) or bitcoin (BCH) as payments for its products and services. Avnet partnered with payment platform, BitPay, who will aid with verifying funds, processing orders, and completing transactions.

SOURCE: ETHNEW


? IBM Signs 6 Banks Ready To Issue Stablecoin

MONDAY, MARCH 18, 2019

IBM officially launches its real-time global payments network, Blockchain World Wire (BWW), in collaboration with Stellar (XLM) is now live. IBM and Stellar announced that six international banks have signed up to issue their own stablecoins on the blockchain-powered payments network. BWW currently supports more than 47 currencies for payments across 72 countries.

SOURCE: COINTELEGRAPH


✋ Bitcoin Futures On the Bakkt Burner

MONDAY, MARCH 18, 2019

The highly anticipated bitcoin futures market, Bakkt, by Intercontinental Exchange (ICE) has yet to receive regulatory approval from the Commodity Futures Trading Commission (CFTC). ICE originally intended to launch the platform in mid-December, but has since delayed the project indefinitely.

SOURCE: COINDESK


? Blockchain Watch: Whale Hello There

WEDNESDAY, MARCH 20, 2019
TUESDAY, MARCH 19, 2019
MONDAY, MARCH 18, 2019

SOURCE: TWITTER


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