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Coinscious Market Report - September 2, 2019 - ETC, BTG

Ethereum Classic (ETC) Defies Bear Market & Beats Bitcoin

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

Overview

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports plan to focus on metrics derived from a 30-day rolling window of data, this time from August 3, 2019 to September 1, 2019. ethereum classic

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies. Please see Appendix A for the complete list. ethereum classic

Analysis

The performance of major cryptocurrencies over the past month was bad, with only 6 out of the 50 cryptocurrencies that we examined up from their values 30 days ago. Bitcoin (BTC), the largest cryptocurrency by market capitalization, is currently trading at $9900 at the time of writing, having oscillated between $10525 and $9775 last week. ETC

Outside of cryptocurrencies, the S&P 500 is down -1.76% from 30 days ago and closed last Friday at $292.37.

Figure 1 presents the risk versus return trade-off over the past 30 days by plotting mean daily return versus historical daily volatility for various cryptocurrencies. 

Figure 1. Plot of mean daily return against historical daily volatility for individual cryptocurrencies from August 3, 2019 to September 1, 2019. Higher returns at a given level of risk, measured through historical daily volatility, indicates a better investment.

Ethereum Classic ETC - Risk Return - September 1, 2019

The best performer overall over the past month was Ethereum Classic (ETC), with a total return of 6.59%. Ethereum Classic is a hard fork of Ethereum having consistently more efficient value transfers and a focus on IoT applications. Ethereum Classic also had the second highest Sharpe ratio of the cryptocurrencies analyzed, beat only by MakerDAO’s stablecoin (DAI). 

The second and third best performing cryptocurrencies were Paxos Standard (PAX) and TrueUSD (TUSD) – both stablecoins – with total returns of 0.19% and 0.11%, respectively. 

Bitcoin Gold (BTG) was the worst performing cryptocurrency, with total losses of 40.37%. Bitcoin Gold is a hard fork of Bitcoin and will be delisted from Bittrex this mid-September. The second and third worst performing cryptocurrencies were MonaCoin (MONA) and Litecoin (LTC), with total losses of 35.39% and 32.83%, respectively.

Figure 2a. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each of the five cryptocurrencies with the highest total returns from August 3, 2019 to September 1, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate. 

ETC, DAI, PAX, TUSD, USDC - Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each of the five cryptocurrencies with the highest total returns from August 3, 2019 to September 1, 2019

Figure 2b. Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each of the five cryptocurrencies with the lowest total returns from August 3, 2019 to September 1, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate. Bitcoin

BTG, MONA, LTC, BTM, ZEC - Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each of the five cryptocurrencies with the lowest total returns from August 3, 2019 to September 1, 2019.

Figure 3 plots daily candlesticks of the prices of Bitcoin (BTC), Ether (ETH) and XRP (XRP), the three largest cryptocurrencies by market capitalization. In addition, the following commonly used technical analysis indicators are shown:

  • Simple moving averages (SMA) with periods of 50, 100, and 200 days
  • Relative strength index (RSI) with a period of 14 days
  • Moving average convergence divergence (MACD) with a fast EMA period of 12 days, slow EMA period of 26 days, and a signal period of 9 days

The 50-day simple moving averages for Bitcoin is above the 100-day moving average. Ether had a crossover from above to below before mid-August while XRP remained below throughout the month. This indicates a short-lived bullish market at the beginning of August, but overall ending with a bearish signal. 

The RSI values of Bitcoin briefly increased to high 60’s but dipped below again. Both RSI values for Ether and XRP oscillated between 30-50’s – neither overbought nor oversold – for the entire past 30 days.

For all top three cryptocurrencies, the MACD line crossed below the MACD signal line towards mid-August. This is known as a bearish crossover and could be interpreted as a short-lived bearish signal. ethereum classic

Figure 3a. Price of Bitcoin (BTC) in USD at Bitstamp from August 3, 2019 to September 1, 2019.

Price of Bitcoin (BTC) in USD at Bitstamp from August 3, 2019 to September 1, 2019.

Figure 3b. Price of Ether (ETH) in USD at Bitstamp from July 7, 2019 to August 4, 2019. ETC

Price of Ether (ETH) in USD at Bitstamp from August 3, 2019 to September 1, 2019.

Figure 3c. Price of XRP (XRP) at Bitstamp in USD from July 7, 2019 to August 4, 2019.

Price of XRP (XRP) at Bitstamp in USD from August 3, 2019 to September 1, 2019.

APPENDIX A: Cryptocurrencies

Below is a complete list of all cryptocurrencies examined in this market report. In addition, we present the mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from August 3, 2019 to September 1, 2019. More positive Sharpe ratios are more desirable. The Sharpe ratio is calculated with the 10 year US Treasury bill rate as the annual risk-free rate.

Cryptocurrencies - Mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from August 3, 2019 to September 1, 2019. - ETC
mean daily returns, historical daily volatility, total returns, and ex-post Sharpe ratio for each cryptocurrency from August 3, 2019 to September 1, 2019. - ETC, XRP

APPENDIX B: Methodology

The daily price data of cryptocurrencies in USD at 4:00 PM EST from August 3, 2019 to September 1, 2019 was used for our calculations. ETC

The prices are the volume weighted average price of the cryptocurrency in USD at 4:00 PM EST each day across all exchanges where Coinscious has data. The only exception is Siacoin (SC), where we used the Yahoo Finance price instead due to data quality issues at the time of writing.

Daily closing price data of the S&P 500 index was obtained from Yahoo Finance. The latest 10 year US Treasury bill rate from YCharts was used for calculations involving a risk-free rate.

In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX C: Terminology

  • Volatility: A measure of the dispersion in the trading price of an instrument over a certain period of time, defined as the standard deviation of an instrument’s returns.
  • Sharpe ratio: A risk adjusted measure of return that describes the reward per unit of risk. The reward is the average excess returns of an investment against a benchmark or risk-free rate of return, and the risk is the standard deviation of the excess returns. A higher Sharpe ratio is better. Ex-ante Sharpe ratio is calculated with expected returns whereas ex-post Sharpe ratio is calculated with realized historical returns.

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. ethereum classic

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Official Crypto Beginnings & Ends

By | News | No Comments

? Binance Labs Grants $45K To Three Blockchain Projects

FRIDAY, APRIL 12, 2019

Binance Labs, a venture arm of cryptocurrency exchange Binance, granted $15,000 to each of its first 3 open-source Fellowship projects:

  • Ironbelly: a mobile crypto wallet from Grin blockchain,
  • HOPR: a privacy-preserving messaging protocol, and
  • Kitsune Wallet: an upgradeable on-chain wallet.

Binance Labs Fellowship helps fund and support open-source development projects that contribute and have infrastructure value to the blockchain ecosystem.

SOURCE: CRYPTONINJAS


? WikiLeaks Receives BTC Donation Worth $20,000

FRIDAY, APRIL 12, 2019

WikiLeaks leader, Julian Assange, was arrested by United Kingdom police for extradition to the United States. Assange has sought asylum since 2012 at the Ecuadorean embassy in London, but Ecuador recently withdrew this status. 

Since Assange’s arrest, WikiLeaks has plead for donations from the public to contribute to its official defence fund. The fund has received $20,000 worth of bitcoin at the time of this writing. 

SOURCE: DAILYHODL


? Coinbase Vice President Leaves After 5 Years

FRIDAY, APRIL 12, 2019

Coinbase, the U.S.-based cryptocurrency exchange, will say goodbye to executive and vice president, Dan Romero, at the end of this month. Romero has been with the company since 2014 when there was only 20 employees; they now have over 700.

The announcement was officially made through Coinbase’s Medium account, but does not share any specific reason for his departure. A total of nine senior and mid-level employees have left Coinbase since its fundraiser October of 2018. 

SOURCE: COINDESK


? Bakkt Hires Former Paypal & Google Exec For New Chief Product Officer

THURSDAY, APRIL 11, 2019

Bitcoin futures exchange, Bakkt, has introduced their new Chief Product Officer (CPO), Mike Blandina, a former Paypal and Google senior engineer executive. Bakkt CEO, Kelly Loeffler, announced that Mike will lead efforts to “converge a trusted ecosystem for digital assets with payment use cases.”

SOURCE: COINTELEGRAPH


? 5th MakerDAO Poll To Increase in Stability Fee

THURSDAY, APRIL 11, 2019

Users of MakerDAO‘s stablecoin, DAI, are taking to the polls for the fifth vote this year to further increase the stability fee another 4%; a total increase of 11.5% per year if approved. The polls end today at 5 PM UTC and the majority so far is in favour of the increase. DAI is an ERC-20-based stablecoin pegged 1:1 with the USD via issuance of Maker-administered collateralized debt positions. 

SOURCE: COINTELEGRAPH


?? China To Proposes New Policy on Crypto Mining

THURSDAY, APRIL 11, 2019

China’s National Development and Reform Commission (NDRC) has published a draft proposal looking to restrict and/or eliminate virtual currency mining. It does not outright specify that mining should be banned, but says it’s necessary to control as the current industry heavily relies on fossil fuel energy which leads to increased environmental pollution. 

Half of all existing bitcoin mining operations occur in China. If the proposal were to become policy, it will not only alter environmental impacts of bitcoin mining, but also decentralised mining efforts: wider hash rate distribution, stronger network, and new mining locations using renewable energy.  

SOURCE: NEWSBTC


? Coinbase Card Launches in the U.K.

WEDNESDAY, APRIL 10, 2019

Cryptocurrency exchange, Coinbase, has launched Coinbase Card to allow users in the United Kingdom to spend cryptocurrencies in-stores or any online website. The card itself is a Visa card that works with any merchants on the Visa network.

Coinbase has also released a Coinbase Card mobile app to manage crypto balances. Users can directly access cryptocurrencies from their account, without needing to transfer assets from the main to card app. The card costs $6.50 and every transaction costs 2.49% in fees (1.49% conversion fee plus 1% transaction fee. 

SOURCE: TECHCRUNCH


❌New York Rejects BitLicense Application by Bittrex

WEDNESDAY, APRIL 10, 2019

Seattle-based cryptocurrency exchange, Bittrex, was rejected by the New York Department of Financial Services (NYDFS) on their application for a  BitLicense. The NYDFS published a formal letter outlining all of the factors and deficiencies that contributed to their decision. This included Bittrex’s: inadequate BSA/AML/OFAC compliance program, inadequate coin/token due diligence, inadequate capital, and more. 

Bittrex has released their official statement in response to the NYDFS’ decision. The company has stated that at this time, they are unsure if they will reapply for the BitLicense. 

SOURCE: COINDESK


? Mt. Gox Creditors Leader Leaves Post

TUESDAY, APRIL 9, 2019

Founder and coordinator of Mt. Gox Legal, Andy Pag, has stepped down from the organized creditor group. Pag spearheaded the group 18 months ago with the intention of advocating for the reimbursement of creditors of the now defunct cryptocurrency exchange, Mt. Gox. Fast forward to today, Pag has shared in an interview that he believes ongoing legal issues – especially with former startup partner Coinlab – may hold up the civil rehabilitation process for up to two more years. 

SOURCE: COINDESK


? Western Union Partners With Digital Wallet

TUESDAY, APRIL 9, 2019

Money transfer giant, Western Union, has partnered with digital wallet provider, Coins.ph, to expand cross-border transfers to the users in the Philippines. Users can receive and hold international money transfers from Western Union’s digital and retail networks in more than 60 and 200 countries respectively. 

SOURCE: COINSPEAKER


✂ Bitfinex Removes Minimum $10K Balance Requirement

TUESDAY, APRIL 9, 2019

Cryptocurrency exchange, Bitfinex, has removed its $10,000 minimum equity trading requirement. On their official blog, they advised the update is in response to increasing level of requests for access to trade on the exchange from a wide variety of traders. To support their new wave of customers, the company has redesigned their support centre, created a new KYC portal, and will start offering sentiment analysis for supported coins/tokens.

SOURCE: COINTELEGRAPH


⚖ QuadrigaCX Officially Declares Bankruptcy

MONDAY, APRIL 8, 2019

On Monday, the Nova Scotia Supreme Court ruled that the Canadian-based cryptocurrency exchange, QuadrigaCX, will be entering bankruptcy. Since the end-of-January, QuadrigaCX has been operating under the Companies’ Creditors Arrangement Act (CCAA) to get assistance reclaiming access to funds located in cold wallets. Currently, the company owes 115,000 users more than $195 million worth in both cryptocurrency and fiat.

SOURCE: COINDESK


?  Blockchain Watch: Oh Whale

FRIDAY, APRIL 12, 2019
THURSDAY, APRIL 11, 2019
WEDNESDAY, APRIL 10, 2019
TUESDAY, APRIL 9, 2019
MONDAY, APRIL 8, 2019
SUNDAY, APRIL 7, 2019

SOURCE: TWITTER


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Cryptocurrency Triumphs & Troubles

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? U.S. Authorities Charge Leaders of ‘OneCoin’

FRIDAY, MARCH 8, 2019

United States prosecutors announced criminal charges against leaders behind OneCoin, a multibillion-dollar cryptocurrency pyramid scheme. Konstantin Ignatov, Ruja Ignatova, and Mark Scott were charged by the Southern District of New York for wire fraud, securities fraud and money laundering. An estimated $1.2 billion of investor money was laundered to at least 21 countries

SOURCE: NASDAQ


⏸  Fidelity May Delay Support for Ethereum

FRIDAY, MARCH 8, 2019

Fidelity Digital Assets (FDAS) advises support for ethereum (ETH) may be delayed due to the latest hard fork upgrades. FDAS quietly launched this quarter and is a new company created by investing giant, Fidelity Investments. FDAS president, Tom Jessop, says they want ether and other cryptocurrencies to be available but the process it’s easy. Bitcoin (BTC) is currently the only digital asset supported on the platform.

SOURCE: COINDESK


?? South Korea Establishes Task Force To Fight Crypto Fraud

FRIDAY, MARCH 8, 2019

South Korean’s Supreme Prosecutors’ Office(SPO) has created a new task force to protect consumers from fraud, crimes, money laundering, and other suspicious activities related to digital currencies. Cryptocurrency related crimes in the country have risen from 53 in 2016 to 4,500 in 2018. 

SOURCE: COINGEEK


⚙️ OKEx Lists Tron On C2C Market

THURSDAY, MARCH 7, 2019

Cryptocurrency exchange, OKEx, adds Tron (TRX) to its customer-to-customer (C2C) trading platform. The decentralized C2C platform allows users to trade assets directly with one another. In addition, users can place orders with self-selected exchange rates and pay using cryptocurrency or support fiat currencies.

SOURCE: COINGAPE


? eToro Launches Trading Platform & Wallet in the U.S.

THURSDAY, MARCH 7, 2019

eToro, the social investing and trading platform, officially announces the launch of  its fiat-to-crypto platform in the United States. The platform is already available in 140 countries worldwide and will now operate in 30 states and 2 territories in the US. Users will be able to use popular like CopyTrader to follow trading habits of individuals with a proven track record. eToro’s multi-signature wallet provide multi-coin support such as BTC, ETH, LTC, BCH, XRP and XLM

SOURCE: NEWSBTC


? SIX Teams Up With R3 Corda For New Digital Asset Exchange

THURSDAY, MARCH 7, 2019

The Swiss stock exchange, SIX, selects R3 Corda to provide its ucoming blockchain-based platform. It will use R3’s Corda Enterprise to power the Six Digital Exchange (SDX) platform to allow the issuing and trading digital assets, as well as tokenization of securities and non-bankable assets. 

SOURCE: FINEXTRA


? Coinbase Clarifies It Never Shared “Personally Identifiable” Customer Data

WEDNESDAY, MARCH 6, 2019

Coinbase is still in the hot seat since its acquisition of blockchain analytics firm, Neutrino. Tensions raised last Friday when Christine Sandler stated that the exchange’s previous analytics provider was “selling client data to outside sources” in her interview with Cheddar. A spokesperson from Coinbase has now advised Sandler misspoke and clarified the exchange never shared “personally identifiable information with any third-party blockchain analysis vendors.”

SOURCE: COINDESK


? Ripple Launches On Huobi’s OTC Platform

WEDNESDAY, MARCH 6, 2019

Cryptocurrency exchange, Huobi, now supports Ripple (XRP) on to its over-the-counter (OTC) platform which currently lists assets such as bitcoin, ethereum, tether, EOS, and Huobi Token. Huobi OTC aims to bridge the gap between fiat and digital assets, serving as an escrow for its users.

SOURCE: COINTELEGRAPH


? Swiss Stock Exchange Launches Ethereum ETP

WEDNESDAY, MARCH 6, 2019

Swiss’ SIX stock exchange launches its first ethereum-based exchange traded product (ETP) under the ticker AETH. Ethereum ETP, backed by startup Amun AG, is the second cryptocurrency-based ETP to be made available, with bitcoin ETP being the first. SIX plans to list a total of five crypto-based ETP’s which will also include ripple, bitcoin cash and litecoin. These collectively make up the Amun Crypto Basket Index  (HODL5).

SOURCES: BITCOIN.COM


? MakerDAO Holds Vote on Fee Hike for DAI

UPDATE: FRIDAY, MARCH 8, 2019

Votes are in! Users and holders of DAI in favour of increasing the DAI stability fee from 1.5% and 3.5%.

SOURCE: CRYPTOGLOBE

TUESDAY, MARCH 5, 2019

MakerDAO is asking token holders of ethereum-backed stablecoin, DAI, to vote on whether to go forth with the proposed increase in stability fees from 1.5% to 3.5%. MakerDAO’s founder, Rune Christensen, states the rationale behind the fee hike is because DAI’s dollar-peg is “almost at a breaking point”. Token holders can cast their votes here.

SOURCE: COINDESK


⚖️ Quadriga Gets 45-Day Extension from Court

TUESDAY, MARCH 5, 2019

The Canadian court has granted troubled crypto exchange, QuadrigaCX, a 45-day extension to allow for the continued search of $140 million worth of missing cryptocurrency. In addition, the court has appointed Peter Wedlake, a retired partner and senior vice president of audit firm Grant Thorton, to be the chief restructuring officer (CRO). The court has also ordered Amazon Web Services to overturn any data on the Quadriga platform originally created by Gerald Cotten, the former CEO.

SOURCE: COINDESK


☑️ Tron (TRX) Partners With Tether (USDT)

MONDAY, MARCH 4, 2019

Tron Foundation officially announces their newest partnership with Tether. The partnership will bring Tether’s USDT coin onto the TRON network by the end of Q2 2019, and allow the issuance of a TRC20-based USDT. This marks the first major cryptocurrency crossover and will allow TRX and Tether users to transact on the TRON network with access to a price-stable asset.

SOURCE: ETHEREUMWORLDNEWS


? Blockchain Watch: Hello Goodbye

FRIDAY, MARCH 8, 2019

Bitcoin whales moved a total of 9820 BTC, worth $38.4 million dollars.

THURSDAY, MARCH 7, 2019
WEDNESDAY, MARCH 6, 2019
TUESDAY, MARCH 5, 2019
MONDAY, MARCH 4, 2019

Bitcoin (BTC) and Stellar whales start off the week strong.

SUNDAY, MARCH 3, 2019

Ethereum whales are on the go, moving a total of 174, 450 ETH, worth $22.1 million dollars.

SOURCE: TWITTER


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