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The next evolution in Crypto Trading

The revolution of emerging blockchain technologies has been shifting from legacy models and habits to embrace the paradigm shift. The most significant aspect of blockchain is that it is decentralization, which allows for a trust to take place, distribution of ownership and removes the necessity for third party arbitration.

It is a fact that money is now flooding into the cryptocurrency market with the market cap increasing from 17 billion US$ to more than 500 billion US$ in 2017 alone. That is more than 200 fold increase in 2017. Several major catalysts are contributing to the move to decentralized cryptocurrency exchanges also known as DEXs.

DEXs are known to be superior in security and provide instant account creation. In their current state of development, they are said to lack liquidity and their user experience and user interface are still immature compared to their centralized counterparts. The more liquid there is in the market, the less volatile and price manipulation, making DEXs vulnerable at this stage. At the moment, investors are still walking a tightrope between friction and fluidity hence causing pains

To learn the importance of this kind of shift and what it means, one should seek to understand how centralization affects the investment ecosystem and explore the development steps needed for DEXs to reach their full potential. Centralized exchanges are platforms that allow investors and traders to buy and sell and exchange cryptocurrency against fiat or other crypto assets. Traders deposit funds and then exchange issues on an IOU that is freely tradeable on the platform.

Centralized exchanges are now on the high for people with fiat currency to purchase cryptocurrency. These exchanges allow movement from fiat to crypto and have become a prime target for hackers who have siphoned billions of dollars. Exchanges which follow regulatory guidelines have lengthy registration processes which further hinder investment speed.

DEXs shift investments from a centralized third party, peer-to-peer transactions through proxy tokens or assets or multi-signature escrow system with other solutions that are being developed. This has allowed for investors to remain sole custodians of their funds rather than relinquish their private keys to centralized exchanges DEX benefits include elevated privacy, account creation and decentralized sever resilience hence ensuring that the infrastructure cannot be shutdown.

DEXs are the next evolution

If DEXs are the next evolution, why is it that there is only 1% market adoption? To start, the DEX concept is something that is brand new. As centralized exchanges proceed through their own market maturity lifecycle, decentralized services are only at the starting gate. DEXs are blockchain driven; account control resides solely in the hands of the trader. If they lose their private key, or make a mistake when entering a buy or sell order, then there is no recourse-liability resides exclusively with the account holder, and there can be no finger-pointing. In addition to all these:-

  • Margin lending and other more advanced trading options are not yet available on DEXs.
  • Miners can be able to see the blockchain transactions before they are cleared, resulting in front-running risk and market manipulation.
  • Fiat to crypto trading in DEXs will require the cooperation of banks which introduces a new centralized point of failure.
  • There is a chicken-egg effect at play, resulting in low liquidity. And since transactions happen on the blockchain itself, there may be issues of scaling pressure if the connected blockchains have not been architected well.

DEX developers are also facing so many challenges but it is good to note that they are swiftly moving in their progress. They are continuing to develop user friendly interfaces (UX/UI) and issues such as scalability; liquidity and front-running are being solved with new technology models such as relayers.

Progress is continuing and the momentum is slowly starting to shift to the direction of DEXs, which are the next evolution of cryptocurrency investment. Those who have their eyes open will move in full speed and capitalize on the decentralized nature of blockchains.

Blockchain Applications will move beyond Finance

In order to understand the transformation that has been brought about by blockchain technology, it is useful to start with its largest implementation date. With the maturity of cryptocurrency moving to another level, it has been criticised for its inability to match the performance of the existing payment networks and meet the requirements of financial systems and governments.

Bitcoin has been successful in solving the problem it was designed for, and that is allowing global network to securely transact and exchange value without the need for a costly intermediary. Bitcoin replicates the financial systems ability to transfer value but without any of the labor typically involved in running and securing transactions. Cryptocurrencies like bitcoin and other distributed ledgers are continuing to mature the question would be where might they be applied next?

How Blockchain Works

The following are five basic principles underlying the technology of Blockchain:-

  1. Distributed Database

Each party on a blockchain has access to the entire database and its complete history. No party controls that information or data. Every party can verify the records of its transaction directly.

  1. Peer-to-Peer Transmission

Communication occurs directly between peers instead of through a central node. Each of the nodes stores and forwards information to all other nodes.

  1. Transparency with Pseudonymity

Every transaction and its value are visible to anyone with access to the system. Each node or user on a blockchain has a unique 30-plus-character alphanumeric address that identifies it. Users can choose to remain anonymous or provide proof of their identity to others.

  1. Irreversibility of Records

Once a transaction is entered in the data        base and the accounts are updated then the records cannot be altered because they are linked to every transaction record that came before them. Various algorithms and approaches are deployed to ensure that the recording on the database is permanent and available to others on the network.

It is not a surprise some of the closer-to-market applications of the technology are in the financial sector. Trading and speculation were early use cases of bitcoin, new technologies such as Ethereum and Zcash providing a higher degree of privacy than bitcoin and Ethereum offering a powerful development platform for smart contracts and decentralized applications to job and energy markets to hedge funds and cloud services.

When the cryptocurrency ecosystem matures, digital wallet providers and exchanges will become more professional and secure.

Some companies such as Abra and Circle are taking advantage of the lower costs offered by blockchain technology for cross-border payments, encroaching in the territory of players such as Paypal and TransferWise and traditional remittances providers.

Ripple is now lowering the cost of transactions between banks and other financial institutions through its global settlement network. In all of the cases, blockchain technology is adopted and consumers and businesses can reap the benefits without ever knowing that s distributed ledger was involved.

Central banks are also actively exploring the opportunities and challenges a fiat backed digital currency would entail for monetary policy, taxation and lending. The practical applications for blockchain technology go beyond financial assets. Any type of digital asset can be tracked and traded through a blockchain.

The immutability offered by blockchain is only useful if the original information entered on is accurate. Blockchain can allow for the costless verification of the attributes it carries, recording those attributes in the first place may require labor-intensive tasks and intermediaries to prevent fraud from happening.

Cryptocurrencies have the potential to change how internet services are delivered (Blockstack, IPFS) and how open-source communities fund their development.

ICO Investors getting their money back

Seattle based Dragonchain is forcing one of its affiliate projects-Norwegian start up lagon to return funds its raised from investors back in April. It is unclear why this has to happen. Lagon even went ahead to publish a Medium post on April 28 when its presale was scheduled to end that the presale had been paused.

This may have not been its idea but the company is said to have joined an incubator backed by Dragonchain-an enterprise blockchain startup spun out of Disney that is said to have brought the hammer down.

Lagon’s CEO Navjit Dhaliwal said that he could not account for the turn of events as the ICO which managed to raise around $1.3 million in ethereum at that time was cancelled. Dhaliwal believes that all these happened due to some sort of regulation. He said the following,

“It is my understanding that Dragonchain is continuing to tread cautiously as the SEC has been investigating all ICO and blockchain projects that arise.”

He continued saying that lagon met Dragonchain on April 30 to get more details but the answer remained indirect. An admin on a Dragonchain Telegram channel went ahead and told members to expect a statement from the Dragonchain CEO about the course of action going forward.

There could be broader problems at play due to the fact that the token sale was part of a program that Dragonchain created after raising around $13.7million in its own ICO around November. Five token issuers including lagon have been incubated by the company so far and pre-sales have not gone well.

Posts on Telegram

Based on some posts that have been made on another Telegram channel, investors in the Look Lateral token presale which ran sometime last year have been asking for refunds due to the fact that the team has not launched its scheduled sales.

Another issuer using the platform Life ID cancelled its presale. All these are indeed indications that there seem to be regulatory uncertainty around crypto tokens as having significant impact on the industry that’s been built around this new way to raise capital.

Several Telegram channel posts indicate that the incubator has been suspended though no official communications have been made.

New rules needed?

As the regulatory air starts to clear, though, some believe this situation will become all more common.

For example TokenSoft founder Mason Borda tweeted that the lagon refund will likely be part of a forthcoming trend whereby ICO issuers that missed a part of the compliance flow would cleaning up.

There seems to be an increasing interest in designing crypto tokens and the sales to fit under existing regulatory rules while others are pushing for a completely different set of rules to be crafted for the industry.

 

The founder of CoinGeek called bitcoin altcoin and spoke in support of Bitcoin.com

Information resource CoinGeek, a part of the Calvin Ayre Media group of companies, announced the support of the site of Roger Vera Bitcoin.com in a possible litigation if the company and its founder are sued for using the word “bitcoin” in relation to Bitcoin Cash.

Like Roger Ver himself, the founder of CoinGeek, Kelvin Eyre, is convinced that Bitcoin Cash is the “true bitcoin,” which they jointly announced in October of last year.

“If you do not believe me or do not understand me, I do not have time to convince you. Forgive me, “Ver used one of the utterances of Satoshi Nakamoto.

The essence of the claims of Bitcoin.com critics is that using the Bitcoin Core definition to designate Bitcoin (BTC) could mislead some users and, as a result, force them to mistakenly purchase Bitcoin Cash (BCH).

In CoinGeek, the trial is considered an excellent opportunity to thoroughly examine the “Bitcoin Cash benefits” over bitcoin and to challenge the “cultist dogma”.

The organization is convinced that it is the BTC that is a kind of SegWit-fork, and Bitcoin Cash was forced to secede in order to follow the course laid out in the whitepaper of Satoshi Nakamoto.

“For anyone who knows the history and understands the technology, bitcoin under the BTC ticker uses the bitcoin name illegally, since the SegWit implementation deprived it of this right and status, and it can no longer be a crypto currency,” said Calvin Eyre in support of Bitcoin.com .

Recall, Roger Ver published a video message on Youtube, which conducted a comparative analysis of the merits of Bitcoin Cash and bitcoin.

So, he came to the conclusion that Bitcoin Cash is a more accurate interpretation of Satoshi Nakamoto’s original vision.

EOS reached an absolute maximum and continued the rally

Crypto-currency EOS showed a rapid rally this week, breaking the previous high at $ 18.50. So, its average rate has increased by more than 80%, leaving all participants in TOP-10 rating CoinMarketCap far behind

Bulls are confidently pushing the price of the asset up amid positive news about a partnership with blockchain enthusiasts Michael Kao and Vinny Lee, who will participate in the formation of the $ 200 million EOS Global fund for the expansion of the platform in the Asian region.

In addition, the start-up developer of the Block.one platform has entered into a partnership with the German investment firm FinLab AG, which will manage the venture fund from EOS for $ 100 million to expand the platform in the European region.

It is worth noting that EOS, like Tron, intends to abandon the ERC20 standard and switch to its own blockchain in early summer of 2018.

 

Bittrex Exchange supports Tron update

More recently, it became known about the transition of the Tron project to its own blockchain and the rejection of the ERC20 standard. The Bittrex exchange will accrue TRX holders with new tokens in a 1: 1 ratio and will stop supporting old-style coins.

Tron wallets will be temporarily unavailable during June 20-21, when a snapshot of the blockchain will be taken and the project will be transferred to its own mainnet.

Earlier, in the Ethereum network, a vote took place, during which the community rejected the implementation of the update of the protocol EIP-999 for unlocking funds on Parity wallets with a multi-signature.

John McAfee urged Jamie Dimon to surrender to the crypto-currency industry

A well-known crypto-enthusiast and founder of MGT Capital Investments, John McAfee believes that a new spiral of rising prices for digital assets, increased mining activity and the introduction of blocking technology and crypto-currencies in various industries suggests that attempts by JPMorgan & Chase CEO Jamie Daymon to destroy the traffic failed.

Daimon was long considered the main critic of bitcoin on Wall Street, but then he suddenly changed his position.

“I’m sorry to give such comments,” said Dimon during an interview with Fox Business.

At the same time, he stressed that he was not interested in bitcoin at all, but at the same time he believes that the technology of the blockchain is real and working.

Recall, that for John McAfee have very much at stake. The creator of the antivirus McAfee Security promised to eat his penis if the price of bitcoin does not reach $ 1 million in 2020.

Pantera Capital: capitalization of the crypto-currency market can easily reach $40 trillion

The cost of bitcoin grows due to the fact that the coin got rid of the “dirty” reputation and attracted large investors. This in an interview with Bloomberg said the head of the hedge fund Pantera Capital Dan Morhad.

Nevertheless, according to him, bitcoin still has not reached its fair price.

“Of course, we are extremely optimistic about this sphere. We believe that we are much lower, perhaps an order of magnitude or two, of the fundamental fair value of the detachment, an industry that is collectively estimated at $ 400 billion. It can easily grow to $ 4 trillion, and maybe up to $ 40 trillion, “said Morhad , adding that bitcoin continues to “shout about buying.”

Along with this, the head of the hedge fund said that he relies on investments in the South Korean ICON project, not bitcoin.

We note that Pantera Capital controls assets totaling $ 1 billion, 10% of which are placed in the first crypto currency. In March, the hedge fund lost almost half of its funds.

Recall earlier in April, Dan Morehead said that before the end of this year, the price of bitcoin will not fall below $ 6,500 and it has a high probability of overcoming the December maximum in the $ 20,000 area.

 

Bithumb Exchange will issue its own token

The largest South Korean crypto-exchange Bithumb plans to release its own token.

Since South Korea has a ban on holding initial offers of coins (ICO), it is most likely that tokens called Bithumb Coin will be issued in Singapore.

“We know that the work on the creation of Bithumb coin is conducted by a local branch, acquired by a subsidiary of the exchange,” said one of the representatives of the leading South Korean trading platform. “Such details as the specific schedule and the volume of the emission have not been confirmed yet.”

Also, the publication notes that the ICO Bithumb coin will focus mainly on large institutional investors.

Note that the issue of own tokens by large exchanges becomes mainstream. Its own token plans to release the Huobi Pro trading platform. There are also own tokens in the crypto-exchange Binance and KuCoin.

Saxo Bank: Crypto-currency market in anticipation of a new positive cycle

Specializing in online trading and investment, Saxo Bank published a quarterly forecast for global markets, including the topic of crypto currency, which, in his opinion, could be on the threshold of a new cycle.

In the 35-page document Quarterly Outlook Q2 2018 released yesterday, Saxo Bank focuses on issues such as the approaching completion of the largest ever monetary experiment in the field of monetary policy, growing nationalism, ever more prominent social and economic disparities, and an ever-widening lack of hope among the younger generation.

In addition, bitcoin and other crypto-currencies became one of the areas that Saxo Bank analysts paid special attention to.

In particular, the document raises the question that crypto-currencies can enter a new cycle of their development. Thus, after an unprecedented rise to historical highs at the end of 2017, when the bitcoat price reached $ 20,000, in the first three months of 2018, digital currencies dropped significantly.

“Having lost more than 50% in value, bitcoin showed the worst for itself the first quarter and the second worst quarter in its history,” the report says.

According to Jacob Pauncey, the analyst at Saxo Bank, the situation continues to be fragile due to growing pressure from regulators and a ban on advertising in the largest social networks. However, “the possibility of renewal of growth” can not be ruled out, “he added.

Jacob Pouncey believes that in the short term there may be further downturns due to the same regulation and the continued sale of large batches of bitcoins by the trustees of the bankrupt Mt Gox stock exchange.

The analyst identifies several events that could potentially become a springboard for bullish sentiment in the market in the second quarter.

“If there is a significant pullback in the stock markets, there will be an influx of money into uncorrelated assets or assets that are outside the traditional financial system. And crypto-currencies become a potential alternative. The influx of institutional capital into the market of crypto-currencies due to greater regulation and better protection of investors can lead to a positive second quarter, “said Jacob Pauncey.

The growth in the last two years was due to the general geopolitical instability in the world, where the key events were the election of Donald Trump for the presidency of the United States, the referendum on the withdrawal of Britain from the European Union (Brexit) and nuclear tests in North Korea.

And according to Jacob Pouncey, the current negative cycle will also come to an end sooner or later. Weak investors will leave the market, and those who remain will be waiting for further positive news.