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Crypto Analyst Warns 2019 Bitcoin Rally Set to ‘Blow Off’ – Plus Ethereum, Ripple and XRP, Litecoin, Stellar, Tron | The Daily Hodl

From a warning about Bitcoin’s 2019 rally to new support for Stellar Lumens, here’s a look at some of the stories breaking in the world of crypto.

Bitcoin

A prominent crypto analyst warns the 2019 Bitcoin rally is an “exchange driven pump” that’s due for a significant pullback. According to Willy Woo, Bitcoin’s Network Value to Transactions (NVT) ratio is now way out of whack.

“Presently the market price of BTC has outstripped organic investor flow unseen since the bull market mania phases of 2013 and 2017. Never before have we seen such a divergence so early in the bull market.”

The NVT ratio measures the utility value of Bitcoin according to the number of transactions on the network relative to the price. Because on-chain investor volumes are in the normal range, Woo says the only explanation is “a quant fund driven short squeeze devoid of any true investor volume.”

Whales can short squeeze a majority-short market by buying it up until the shorts are liquidated, forcing a torrent of buys that inflate the price, Woo explains.

“If you have sufficient capital. You can keep buying to liquidate the bears. It’s extremely profitable. You only stop when it’s no longer profitable. At the $8k-9k mark the market switched from short to majority long. This put a cap on the profitability of short squeezing.

“I’m awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.”

Ethereum

Ernst & Young’s global blockchain leader, Paul Brody, says blockchain is poised to trigger a fundamental transformation of how enterprises do business.

The accounting and consulting giant EY is building on Ethereum, and Brody says use cases for audits and supply chain management are some early examples of prime use cases for the technology.

“What I hope you’ll take away from this today is that blockchain is maturing. We have real products, real customers, real use cases, real value creation, stuff that’s in operations, and we also have a road map for where things can and should go in the future and how this can have an ever-bigger impact…

Blockchains we think are going to be the future way in which companies model and manage their business processes and, in particular, we can basically model any process between two enterprises or two agencies or two governments as a combination of tokens to represent assets and items of value and contract.”  

Ripple and XRP

A presentation from Ripple’s chief technology officer David Schwartz is now online. At the We Are Developers in Berlin, Schwartz talks about the future of blockchain beyond the hype.

Litecoin

The Litecoin Foundation’s unique methods for raising funds to support the LTC ecosystem continue.

The Foundation has started to ship custom Litecoin cufflinks and tie bars, with a signed certificate of authenticity from LTC creator Charlie Lee.

Stellar

Crypto.com has added Stellar Lumens (XLM) to its Wallet & Card app.

Users of the app can now purchase XLM at true cost with no fees, with both credit cards and bank transfers supported. People can also use XLM with Crypto.com’s MCO Visa Card, making it easier to convert Stellar’s token into fiat for purchases from everyday merchants.

Tron

Tron’s latest report on the network’s decentralized app ecosystem is out.

According to the report, four new gaming DApps launched on the network this week, along with a decentralized exchange called SunDex.

Source: Crypto Analyst Warns 2019 Bitcoin Rally Set to ‘Blow Off’ – Plus Ethereum, Ripple and XRP, Litecoin, Stellar, Tron | The Daily Hodl

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CoinMarketCap Crypto Assets Now Feature Flipside Letter Grades

Blockchain analytics startup Flipside Crypto is bringing crypto asset letter grades to a slew of online publishers. The Fundamental Crypto Asset Score (FCAS) metric – which evaluates factors such as developer activity and a broad set of transaction data – was recently added to CoinMarketCap, along with publishers such as MarketWatch, TheStreet and Stocktwits. The move comes ahead of the launch of CoinMarketCap’s first Android app, scheduled for April. Carylyne Chan, head of global marketing at CoinMarketCap, told CoinDesk these easy-to-use metrics will give users a more transparent view of how these assets are evolving. According to Chan, the site attracted 125 million repeat visitors in 2018 alone……

Source: CoinMarketCap Crypto Assets Now Feature Flipside Letter Grades

ICE, the Parent Company of Bakkt, Announces 58 Crypto They Look to List

The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE) and upcoming digital asset platform, Bakkt has released a list of crypto projects they are looking to list and track on a Twitter post. Per the tweet, ICE’s Data Services will be researching and tracking a total of 58 cryptocurrency projects as well as 19 fiat currencies. These projects are compiled in their ‘Cryptocurrency Data Feed’, which will provide the research team with both historical and real-time price data of the cryptocurrencies from all over the world. There are over 2000 cryptocurrency projects in the space and ICE has selected just 2.75% of the total number of cryptos to research and track. The entire list of 58 cryptocurrencies can be found in the Twitter thread seen above and the real-time analysis of these cryptos will be available on the data feeds official website………

Source: ICE, the Parent Company of Bakkt, Announces 58 Crypto They Look to List

The Crosscurrent Movement of Central Banks towards Stable Coins

According to Stablecoinindex, The Total Market Cap of the current renowned stable coins are up to USD9.32bn, with this number not even including all of the fiat-collateralized stable coins such as USDC, X8X, etc. Since the end of 2018, various firms are turning their focus to stable coins, voicing their opinions towards central banks who have remained pretty pessimistic towards their introduction. The Central Bank of Korea: “Stable Coin for Korea? Still Premature!”The Central Bank of Korea recently published a report “Central Bank Digital Currency and Financial Stability”published on Feb 7th, making a very specific announcement that the issuance of the Central Bank Digital Currency (CBDC) is too much “premature”, and currently they will only be focusing on R&D………..

Source: The Crosscurrent Movement of Central Banks towards Stable Coins

Tether’s U.S. Dollar Peg Is No Longer Credible

USDT is the foremost stablecoin in the crypto world. Pegged one for one to the U.S. dollar, it is widely used as a vehicle for getting dollars in and out of crypto exchanges. Crypto enthusiasts will tell you that holding USDT (“Tethers”) is the same as holding dollars. But now, Tether, the issuer of USDT, has now admitted that Tethers are not 100% backed by actual dollars. The peg is no longer credible. And Tether itself has morphed into something all too familiar.

BANGKOK, THAILAND – 2018/08/30: A smartphone displays the Tether market value on the stock exchange via The Crypto App. (Photo by Guillaume Payen/SOPA Images/LightRocket via Getty Images)Getty

Here’s how Tether’s claim of 100% actual currency backing has changed during the coin’s existence. This is what their website originally said:

@CasPiancey

There has never been a “professional audit” of the reserves. After lots of people pointed this out, the wording on the website subtly changed:

Tether drops “professional audits” claim@CasPiancey

Lots of people questioned the “professional verifications”, too. So Tether simply removed all reference to them. It still retained the claim to 100% currency reserves, though:

Tether drops “professional verifications” claim@CasPiancey

But the rumors persisted. And now, it seems, they were justified. This is what Tether’s website now says:

Tether drops “100% currency reserves” claim@CasPiancey

So Tether does not have 100% traditional currency backing for its reserves. It has “cash equivalents,” which are presumably other cryptocurrencies (like pegging to a volatile asset is such a good way of ensuring stability). And some of its “reserves” are held in the form of loans that it has made to other parties. Tether has become an unregulated fractional reserve bank.

It’s a very risky fractional reserve bank, too. Loans that you can’t sell, can’t pledge for cash, and may or may not be able to call are not by any stretch of the imagination “reserves.” No regulator would let a licensed bank get away with this, even though licensed banks have Fed backing and FDIC insurance. Tether may regard one USDT as the same as one U.S. dollar, but without either the reserves or the central bank backing to guarantee this, its words are empty. The Fed isn’t going to step in and bail it out.

Remarkably, though, crypto markets still believe Tether’s guarantee:

Tether vs USD, BTCCoinmarketcap

Perhaps crypto enthusiasts should read up on the fate of Reserve Primary Fund in 2008. Or perhaps Venezuela. After all, an exchange rate peg only holds until the reserves run out…

The crypto world has taken another large step towards becoming a simulacrum of the existing financial system without any of its (admittedly inadequate) safeguards. This is supposed to be progress?

 

Source: Tether’s U.S. Dollar Peg Is No Longer Credible

Trade Santa – Automated Crypto Trading Made Simple – NullTX

A cloud software with a Christmas-like name Trade Santa argues crypto-holders have the opportunity to benefit from crypto-market fluctuations by means of automated trading. Trade Santa is a cloud platform that enables crypto-holders to automate their trading on exchanges. They claim its software automates simple strategies relied upon by thousands of traders around the world, and the company hopes to ensure capitalizing on fluctuations in cryptocurrencies doesn’t need to be a full-time job. Users can accelerate the trading process as bots are able to simultaneously track market shifts for unlimited trading pairs and place hundreds times more orders compared to manual trading……

Source: Trade Santa – Automated Crypto Trading Made Simple – NullTX

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