Kryll.io - A Token Sale Full Of Achievements!April 23, 2018 9:30 am
Kryll.io sale is ending in less than 24 hours, and it sounds like the perfect moment to take a breath and make a quick review of all the first amazing moments we experienced together.
While Elon Musk succeeded in launching its Falcon Heavy, we reached 3K members on Telegram and were ready to launch the Kryll.io Token sale!
February 7th: We launched our ICO with the goal to develop Kryll.io, a simple yet powerful crypto-trading platform where everyone and anyone can easily create and execute its own automated strategies.
Two million Krylls (KRL) were sold on the first day! By day 2, we already sold 5 million KRL. Ten days after the beginning or the Kryll Token sale, we already had 9 million+ KRL sold & 3000+ investors.
In addition to Lisa’s videos, we had the chance to see several media writing about our project such as :
- Cointelegraph : “A New Platform Introduces Automated Crypto Trading”
- The Next Web : “Cryptocurrency trading got you confused? This startup seeks to solve that through automation”
- The Merkle : “Trading Takes Over Your Life? Meet the Platform that Lets You Sell and Buy Bitcoin in Your Sleep”
- Investing.com : “Kryll.io Advances The Automated Trading Revolution For All Investors”
- Cointelegraph : “Learning Automated Crypto Trading Strategy: 4 Steps to Earning”
- Cointelegraph : “Alpha Release Of A Blockchain Startup To Test New Trading Strategies”
March, 1st: We announced our first partnership with Spectre™, the world’s first broker-less trading platform that raised up to $16.6M by the end 2017. Spectre.ai is planning to integrate Kryll.io technology in their platform allowing its users to benefit from some Kryll features on Forex, Crypto and CFD trading.
March, 7th: Our MVP was launched (you can try it: mvp.kryll.io) and got amazing feedbacks from all around the cryptosphere.
Athol Nourse, Forex & CFD expert: “Kryll has an ‘easy to use’ product which has mass appeal and this will enhance trading journey experience.”
Capet @Capetlevrai: “The most intuitive trading tool I’ve ever seen, smart and easy to use, amazing.”
Coach Daniel Muvdi, Trader: “Kryll project is not the first crypto Social trading platform out there, but is defentely the one that will change the game!”
Crypto Insider @CryptoInsiderX: “Through the MVP, Kryll has serious potential to be a game changer!”
Professor Crypto @ProfesorCrypto: “Encompasses everything a new trader could need to be successful; crafted with the utmost perfection.”
Denis Suslov, CFO at Finom AG: “The project o ers a comprehensive multi-platform solution it’s easy and can be used anywhere.”
Crypto Exchange @cryptoexchan: “This will be one of the best trading platforms on the market for beginners and others.”
Hitesh Juneja, CMO at Spectre.ai: “The Kryll.io platform is simple but so powerful with significant commercial value.”
Panama Crypto @Panama_TJ: “This is what crypto trading should be like: easy to deploy strategies, easy to test strategies, fun to use.”
Socal @Socal_crypto: “An awesome and simple to use platform that will be a useful tool for trading vets and noobs alike.”
March, 16th: Taking into account to the bearish market and Kryllians suggestions and vote, we decided to make a bold move and reorganize the sale.
- Extend the Kryll Token sale to April 20, 2018.
- Burn tokens and lower the max supply from 220M to 72M KRL.
March, 26th: We released the first update of our product, featuring quite a few enhancements of an already praised MVP.
- Blocks tooltips
- New strategy example (winning on bull & bear market)
- Clearer result reporting
- Charts aggregation level control
- Flow reorganization in Backtesting Tab
- More detailed logs
March, 30th: We announced a partnership with the Journal du coin and we released the very first video of the “Kryll mobile companion app” that will make the trader’s lives even more easier.
In April, we continue to fly to the moon with the Apple Watch video.
April, 13th: The update that our community voted for was provided …The Strategies editor was released along with a lot of new features or improvements!
- Backtest improvement (faster, more fluidity and flexibility.)
- Dual-backtest analysis (pair 1 and pair 2 ROI-analysis.)
- Max limit extended to 400 trades!
- Save / load / edit / delete your personal strategies.
- Favorite / unfavorite your strategies.
New Kryll’s strategies editor
As of 19 April 2018:
- More than 17,000,000 KRL were sold.
- 4600+ participants from 50 different countries
- 3850+ ETH raised.
- Almost 8,000 users on Telegram. 5,800 followers on Twitter.
Kryll Token Sale is ending in few hours. You can still purchase KRL tokens on our website until Friday, April 20th at 12:00 UTC.
We are just at the beginning of this amazing journey, we want to thank our dear community for their precious support.
Once more, “You asked, we provided!”
Lendo Closes Successful Pre-ICO Ahead of TimeApril 23, 2018 9:27 am
Following the conclusion of negotiations with a regulated lending partner to reserve the entire remaining allocation of tokens in the pre-ICO, Lendo has today announced that it has closed the pre-ICO sale ahead of schedule.
The company started an open pre-sale to last until April 28th, 2018. Earlier this year, Lendo announced details of its public crowdsale to begin on April 28th, upon completion of its pre-ICO phase. Closing the pre-ICO 12 days earlier than anticipated means Lendo is well on track to reach its set milestones as planned.
The UK based fintech company has got the full attention of the global financial community, promising to bridge the gap between the crypto world and traditional finance; a fascinating and practical concept attracting the world over like a magnet. Its recent success, completing the pre-ICO phase ahead of time due to institutional participation, demonstrates the value of its commercial vision.
The crypto market is rebounding
Following a shaky first quarter, the crypto market has rebounded in the last few days, demonstrating it is in its infancy. Its continued growth, in spite of its teething phase, is a solid sign that it is here to stay. Financial services will need to update accordingly to include cryptocurrency if they do not want to be left behind in the near future.
Lendo is right on target for its ICO crowdsale launch
Right on target to launch its ICO crowdsale on the 28th April, Lendo is looking to distribute a further 390 million ELT tokens, which will enable Lendo to turn their vision into reality. The ELT tokens are issued in conformance with the ERC223 standard. The tokens will be sold at a starting price of $0.20 per token.
This is just the beginning
Over the last several months, several major players have announced their intention to enter the blockchain financial world. Paul Lowin, Lendo’s Business Development Manager says: “We are being approached daily by regulated lenders who are looking to get involved. They see the potential in our business model and they are attracted by the fact that Lendo is aiming to be a fully regulated loan platform with a DLT license. They are also convinced that the sustainability of their business lies in cryptocurrency, which allows for faster, less expensive lending decisions and greater security for lenders, meaning lower interest rates for borrowers.” Lendo is the steppingstone to secure a smooth transition into the financial world of tomorrow.
Company name: Lendo
Company site: https://lendo.io/
Company contacts: firstname.lastname@example.org
Sharing Economy, ExplainedApril 23, 2018 8:10 am
Through countless apps and websites, it’s possible to rent things by the day or the week – even by the hour. Occasionally it’s free, but usually there’s a fee.
What is the sharing economy?
Put simply, this is where individuals share items or services, usually on the internet.
Even if you haven’t heard the term, you’ll know about the phenomenon.
Through countless apps and websites, it’s possible to rent things by the day or the week – even by the hour. Occasionally it’s free, but usually there’s a fee.
For those doing the borrowing, it can bring considerable savings when compared to buying a brand-new item that might only need to be used once.
Meanwhile, for individuals who are willing to share their stuff, the concept can help them make a decent side income – boosting their usual earnings.
As well as traditional rental firms, several tech-savvy companies have launched platforms to facilitate sharing between individuals.
Given the sharing economy is still in its infancy, most of us have little awareness about the plethora of companies already in this industry. The accommodation app Airbnb and ride-hailing service Uber are two of the biggest and best-known players, and both are now mainstays in cities worldwide.
What can be shared?
The sharing economy’s potential extends far beyond cars and spare rooms.
Hundreds, if not thousands, of platforms have launched in recent years. If there’s something you want to borrow or lease, the odds are there’s a way of doing it.
You can share someone’s garden if you live in a bustling city, strike up job shares, team up with other travelers to share a tour, swap books, and even take someone’s dog out for the day. Social dining and borrowing DIY tools is also possible.
It seems that current businesses have barely scratched the surface of what’s achievable, too, as new ideas are emerging all the time.
So I can borrow a car… or a dog. What are the advantages?
For starters, it could prove more environmentally friendly.
Think about it: instead of 10 people owning a car that they only need to use occasionally, they can share someone else’s whenever required. Certain concepts such as car sharing, where colleagues hitch a ride together, can dramatically reduce CO2 emissions.
The shift in emphasis from ownership can also make life more affordable. Instead of splashing out on expensive possessions, you can use a fraction of this cash to borrow someone else’s and put the rest towards experiences.
It can also bring communities together – especially in the dog-sharing example we mentioned earlier. If you love pets but can’t have one yourself, striking up a relationship with a dog owner and their furry friend can help you meet new people. Better still, you can enjoy occasional walks in the park without the responsibilities of looking after a pet full time.
Aren’t there downsides to letting someone borrow your dog?
For people with assets to share, trust can be an issue.
Allowing someone to borrow your car or the beloved family dog can be a stretch if you’ve only just met them.
The sharing economy is addressing this by using rating systems which show the experiences borrowers and lenders have had in the past – providing peace of mind. Disputes can also be raised if an item is returned broken, or not returned at all. However, encouraging a culture of sharing might take a little time yet.
One frustration for customers at the moment is the fragmentation of the sharing economy, which means you need to register and generate a login for every service you want to use.
Meanwhile, those hiring out their spare rooms, cars and other assets can be charged high transaction fees by the platforms that make these transactions possible.
How big is the sharing economy?
The statistics are staggering.
According to Statista, 44.8 mln adults in the US used the sharing economy in 2016. This is set to almost double to 86.5 mln by 2021.
Research by Conde Nast Traveler shows Airbnb had racked up 200 mln bookings by 2016. Uber says it has 75 mln customers and 3 mln drivers worldwide – and together, they completed 4 bln trips in 2017 alone. And these numbers cover just two well-known companies.
PricewaterhouseCoopers says the sharing economy has grown at “breakneck speed,” with its research concluding that this growth is sustainable. By 2025, it estimates transactions across just five sectors of this sprawling industry will be worth almost €570 bln in Europe alone (that’s about $705 bln.)
Let me guess… Blockchain could shake up the sharing economy?
That’s right. Some entrepreneurs believe this technology could eliminate the problems which are holding back the sharing economy.
This is because a Blockchain ledger could make transactions more secure and difficult to tamper with – enabling in-depth details about assets, and who is using them, to be stored on a universal database.
Smart contracts could also eliminate the need for sharing economy platforms that serve as middlemen, driving down commission fees.
Blockchain start-ups such as ShareRing want to reduce fragmentation in the sharing economy by making it possible to rent and lease virtually any asset on one platform – with customers being able to borrow anything through a single account and pay someone instantly through a dedicated cryptocurrency. The company also wants to remove borders, meaning it would be effortless to use whether you were in Hong Kong or Havana, London or Louisiana.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
Equity Markets vs. Cryptocurrency Markets: Weekly Performance Review, Feb. 17-23April 23, 2018 7:23 am
Chinese stocks led the way last week for global developed equity markets with the Shanghai Composite Index rising 89.86 or 2.81% to close at 3,289.02. Keep in mind though that Chinese markets were closed till Thursday and this performance reflects only two days of trading due to the Chinese New Year holiday. Regulators announced on Friday, Feb.23, that they would take over Anbang Insurance and the index was still able to advance against the news, a sign of strength.
The remaining six markets tracked in the table below mostly had positive but unexciting performance, while UK’s FTSE 100 index was the one negative market.
Overall, equity markets continue their counter-trend rallies following generally sharp drops off highs earlier in the month.
In Japan the Nikkei 225 index was the second strongest performing market last week, rising 172.53 or 0.79% to end at 3,289.02. On Friday signs of inflation were reported with the CPI inching up 0.9% in January from a year earlier. The third best performer was the US with the S&P5 500 index gaining 15.08 or 0.55% to wrap up the week at 21,892.78. Downward pressure was seen for most of last week with the S&P 500 trading largely sideways before strength came back by Friday. The index closed strong, at the high for the week and a three-week closing high.
Hang Seng Index: Three-week closing high
The Hang Seng Index ended at a three-week closing high, which is a sign of strength, up 151.80 or 0.49% for the week at 31,267.20. Since the 2016 swing low of 21,488.80 the index has been progressing higher in a relatively well-formed parallel trend channel.
Two weeks ago the bottom trend line of that channel was tested as support, along with the 100-day moving average and 78.6% Fibonacci retracement, and it held, subsequently ending a two-week 13.01% correction. As of last week’s 31,477.90 high the index had bounced 8.06% from that low and retraced at least 50% of the prior decline.
For the past five days, the Hang Seng has been consolidating within a range. Therefore, a move through the bottom of last week’s low at 30,720.50 likely leads to further weakness and a possible test of the recent bottom from three weeks ago. A move through the top points to a continuation of the bounce into the 61.8% Fibonacci retracement at 31,820.50, which would complete a gap fill from the decline at 31,712. This is followed by a price zone from around 32,394.9 to 32,552.10, consisting of the three-week high and 78.6% Fibonacci retracement, respectively.
BSE 30 Sensex Index: finally bottoming?
The BSE 30 Sensex Index has been technically lagging the other equity indices as it has barely budged off its recent 34,008.42 swing low. That low was reached three weeks ago along with support of the lower parallel channel line, the 100-day moving average, and the 78.6% Fibonacci retracement. It ended an 8.13% decline off the record high of 36,443.98 from two weeks prior. Last week the Sensex was up 131.39 or 0.39% to end at 34,142.15.
Nevertheless, the bottom developing in this index may be more reliable than what is being exhibited in the other indices as a potential double bottom trend reversal pattern has formed. The three-week low was tested as support with last week’s 33,554.37 low and the index bounced from there to close near the high for the week. This is short-term bullish behavior, and it is occurring at a strong support zone given the confluence of indicators noted in the paragraph above. A breakout of the double bottom occurs on the move above 34,535.
Cryptocurrencies: All weaken together
Leading cryptocurrencies were weak across the board last week and clearly underperformed equity markets. Regardless, the moves were mild historically. It is interesting to note that some of the top cryptocurrencies remain correlated as to direction. In other words, since moving into corrective mode from record highs, they have been generally moving up and down, of course to different degrees, somewhat together.
We will continue to watch the evolving relationships in the coming weeks for signs of a leading index and divergence. Further short-term weakness would not be surprising in the coming week or two as cryptocurrencies continue to sort out a sustainable bottom. So far the recoveries have been V-shaped and are not as reliable as consolidation bottoms of some sort.
IOTA was the worst performer last week, falling $0.39 or 18.4% to close at $1.71. Two weeks ago the IOT/USD pair broke out of a bullish descending wedge pattern, and last week it pulled back towards the top downtrend line of the pattern to test it as support. That process has not yet completed as a short-term downtrend (7-days) remains. Therefore, the expectation is for the cryptocurrency to turn back up once the pullback is complete.
Ethereum exhibited similar price behavior last week as it pulled back to its 100-day moving average support, $791.04, at last week’s low of $787.0. That followed a breakout of an internal downtrend line two weeks ago. Last week the ETH/USD pair was down $84.82 or 9.0% to end at $852.56.
Bitcoin: Watch for continued retracement lower to Fibonacci support levels
Bitcoin was the stronger performer last week, down only $29.90 or 0.30% to end at $10,166.10. Since hitting a bottom at $5,920 three weeks ago, the BTC/USD pair has rallied as much as 98.96% as of last week’s $11,780 high, 50% retracement. That rally included a breakout of an internal downtrend line.
Since hitting last week’s high Bitcoin has been pulling back. Next watch for support to be found that can turn the cryptocurrency back up for a second leg up off the $5,920 bottom and possibly get above last week’s high. The 61.8% Fibonacci retracement is at $8,158.96, and the 78.6% retracement is at $7,174.61. Watch for support to be seen at either of these price areas.
Bitcoin Cash: Looks to be heading lower
Bitcoin Cash continues to show relative weakness on a technical basis. Year-to-date it is the third weakest performer with a drop of 47.8%, and last week it fell $277.30 or 18.1% to end at 1,255.60. It broke out of its internal trend line two weeks ago and rallied into resistance at $1,636.80 before slipping into a retracement, which is where it remains. At that high, the BCH/USD pair was 118.24% above the bottom of the recent correction at $750.0. From the December peak of $4,000.1, the price had fallen 81.25% at that low.
Next watch for a continuation of the decline into potential support at the 61.8% Fibonacci retracement of $1,088.80, followed by the 78.6% retracement at $939.80. Once the pullback is complete, the cryptocurrency can be expected to further recover along with the rest of the cryptocurrency sector.Read More
Equity Markets vs. Cryptocurrency Markets: Weekly Performance Review: Feb. 26 - March 2April 23, 2018 7:17 am
Global Equity Markets: New cracks are revealed
Although a correlation between global equity markets varies over time, they can at times be watched as a group to see which might be leading or lagging. This relative performance can provide an indication of what might be coming next for particular markets or at least point to what signs to watch for. In cases of high correlated volatility, as we’ve seen recently, the signs can be particularly insightful.
Recently, each of the equity markets followed peaked at record price or trend highs, fell sharply together, and then rallied sharply together. The question now for investors is what comes next? Is the volatility over or will we see more sharp moves in the near-term?
Europe may be pointing the way. Last week we saw a continuation of the bear trends in both the U.K. FTSE 100 Index, with a drop of 174.50 or 2.41% to close at 7,069.90, and the German DAX Index, worst performer, which fell 570.10 or 4.57% to close at 11,913.70. The performance though is not what is most telling; rather it’s what is indicated by a review of the price charts.
As of last week, each market has fallen below the recent swing lows from four weeks ago and closed below those lows on a weekly basis. This price behavior triggered bearish trend continuation signals. It not only points to further downside for those indices, but also the bearish investor sentiment represented may spread to other markets. Markets in Japan and China look particularly vulnerable.
Nikkei 225 Index: Drops hard with gaps
Following the 20,940.15 low hit three weeks ago around support of the long-term uptrend line, the Nikkei 225 bounced by as much as 7.4% as of the last week’s 22,502.05 high, which is 50% retracement of the downtrend. However, resistance was quickly seen, and the more powerful downside force again kicked in, driving the index down 711.14 or 3.25% to end at 21,181.64. The decline of the top included two good sized gaps, reflecting the conviction of sellers, and the week ended at a 20-week closing low, a bearish sign.
A drop below last week’s low of 21,088.96 is short-term bearish, but a decline below and subsequent daily close below the recent swing low is needed to trigger a continuation of the developing bearish trend. The Nikkei next heads towards 20,318 if a bear trend continuation is triggered.
Shanghai Composite: Breakdown from ascending channel remains intact
The technical condition of the Shanghai Composite is the worst of the major equity indices as it clearly broke down from a long-term ascending trend channel during the recent sell-off. Following the 14.6% drop off the 3,587.03 peak in January, the index found support at 3,062.74. It subsequently rallied 8.9% as of last week’s 3,335.99 high. That high also completed a 50% retracement of the decline.
Nevertheless, if we step back and look at the developing pattern, we see a bearish breakdown of a rising trend channel followed by a retracement back to a resistance zone around the bottom of the channel. This is classic price behavior for a bearish trend; breakthrough support followed by a retracement back to that price zone to test it as resistance. A drop below last week’s low of 3,228.59 points to further downside
Cryptocurrencies: Watching for relative strength
As first mentioned last week the major cryptocurrencies have been strengthening or consolidating over the past several weeks in a relatively correlated fashion. A decisive advance or decline for one or a few may point the way for the group, and therefore we will be watching closely for signs of relative strength and weakness. We can not only see relative strength in performance numbers but also within the evolution of the uptrend. Sometimes this can be a more reliable indicator for what might be coming next since a trend has a tendency to continue for some period of time and as it progresses there are multiple bullish signals that provide an opportunity to join in the advance.
For the week, six out of the eight currencies followed were positive with only two negatives, but by less than 5%. This is an improvement over the previous week when they all were down for the week.
Monero is now leading the way on a technical basis, and last week it also led by the performance with a $64.57 or 23.2% advance to end at $342.80. On a technical basis, Monero is followed by Bitcoin, which was up 8.5% last week to close at $11,029.99. There will be more about Monero in the discussion below.
Bitcoin is attempting to break out to a new trend high. If it occurs, there will be a new bullish signal for the crypto. A move above the prior swing high of 11,780 signals a continuation of the uptrend that has followed the spike low bottom of 5,920.72 reached a month ago. Last week Bitcoin was up $863.9 or 8.5% to close at 11,029.99.
IOTA had the second best performance last week, up 0.21 or 12.1% to end at $1.92. It has been struggling to continue higher following the peak of $2.21 hit three weeks ago and the subsequent pullback. For the past five days or so it has been pushing up against the resistance zone around its long-term downtrend line. A breakout above the six day high of 2.09 will signal a move above the line and be an early bullish signal that will require further confirmation as price progresses higher, if it is to do so.
Monero: Leading the crypto sector higher
Based on price structure and the progression of the uptrend, Monero is leading the crypto sector higher. Following the $150.00 bottom reached four weeks ago the XMR/USD pair has rallied as much as $223.82 or 149.2% as of Saturday’s $373.82 high. Regardless of the rally, the bottom looks solid as it matched prior resistance (now support) from the Oct.-Sept. 2017 peak and the 78.6% Fibonacci retracement zone.
A bullish trend continuation signal was given late last week as the cryptocurrency broke out above the prior swing high of $330.00. That breakout reflects strength in the second leg of the uptrend coming off the recent bottom. So far, out of the eight cryptos discussed, Monero is the first to take out the first swing high that occurred since the bottoms from a month ago. It is now in a good position to at least complete a measured move or ABCD pattern around $437.49, if not continue further. When combined with the $449.18 swing high resistance zone from January a target zone from around $437.49 to $449.18 is generated.
Dash: May be close to moving again
Dash was down $26.32 or 4.2% last week to end at $604.28, the second weakest performer of the eight cryptos followed for this column. Year-to-date the DASH/USD pair has fallen 40.1% from its $1,625 record high reached in December. Subsequent to that high the price fell to support around prior resistance, swing high, from August of last year, as it hit a low of $376.05. From there it bounced as much as 99.3% as of the $749.41 peak hit three weeks ago.
For the past ten days or so Dash has been consolidating within a relatively narrow range with a low (support) of $570.68 and a high (resistance) of $652. This range is sitting right on support of the long-term uptrend line. Therefore, the consolidation pattern has potentially great significance than it might otherwise since the rising line represents the long-term uptrend.
A trend can be anticipated to continue until proven otherwise. Consequently, a decisive breakout above $652 is not only a breakout of a short-term consolidation range but it also signifies a successful test of support of the trend line and should lead to additional long-term bullish continuation signals. Fibonacci retracement levels of the downtrend are added on the enclosed chart and can be looked at as potential near-term targets.
On the downside, a break below $570.68 is bearish and represents the second time in a month that the uptrend line would have been busted.
Cryptocurrency and Equity Markets: Weekly Performance ReviewApril 23, 2018 7:07 am
Last week, the relatively low volatility in the cryptocurrency market came to an end. Just about all cryptocurrencies dumped together with sharp declines, triggering renewed fear among traders and investors. As always, a bottom – at least temporarily – was eventually found, leading to bounces across the board.
On the other hand, global equity markets were relatively stable and mostly holding above the support, following sharp drops in previous weeks. In most cases, major stock markets continue to evolve a potential bottom other than India, which as of last week has fallen through key support levels.
Global equity markets: holding steady
The German DAX Index and S&P 500 led the way with gains of 3.63 percent and 3.54 percent respectively. At the start of the week, the DAX fell to a new trend low of 11,831.0 before seeing support, around the long-term uptrend line and prior swing low from August. It quickly reversed intraday to close at the high of the day. Nevertheless, it remains in a downtrend following a breakdown from a bear flag trend continuation signal two weeks ago.
The UK FTSE Index and Shanghai Composite saw modest gains of 2.19 percent to 7,224.50 and 1.62 percent to 3,307.17, respectively. The trendline resistance remains above the FTSE, and it has been tested several times in recent weeks and stopped an advance. This puts the index at risk of falling below last week’s low of 7,062.10. At the same time, a potential bullish double bottom has formed. However, it is not confirmed unless there is a rally above the two-week high at 7,326.
Hang Seng: pointing higher
Since falling from the January peak of 33,484.1 Hong Kong’s Hang Seng Index has found support twice around the long-term uptrend line and it continues to hold. Last weeks low of 29,852.40 was the second time that the index bounced off the support area around the line. This tells us to keep an eye on the line going forward for signs of a change in the relationship between the price and the line. In addition, notice that the brown 100-day moving average (MA) support line on the enclosed chart has been parallel to the trend line for a year. The 100-day MA is currently at 30,081.39.
The Hang Seng’s most likely next upside target looks to be around 32,522.1/32,552.1. That’s where an ABCD pattern completes, and the 78.6 percent Fibonacci retracement is hit, respectively.
If a drop below last week’s low occurs instead then the index first heads towards the most recent swing low of 29,129.30 at A, followed by a price zone around 28,588.50 to 28.495.77, which identified from the prior resistance peak in May 2015, and the 200-day MA (purple line).
BSE 30 Sensex: falls through support
India’s BSE 30 Sensex Index barely got a bounce following the decline to support of the 100-day MA (brown line) and 78.6 percent Fibonacci retracement area in February. Once finding support the Sensex formed a relatively narrow range rectangle consolidation pattern around support of the MA and both above and below the long-term uptrend line, until last week. That’s when the index broke down from the rectangle pattern and below the 100-day MA. Last week the Sensex was the worst performer of the seven equity indices followed, falling by 739.80 or 2.17 percent to close at 33,307.14.
Just below last week’s low of 32,991.14 is the next key support zone around 32,737 to 32,360, consisting of the 200-day MA and prior support and resistance levels, respectively. Note that a break below the 32,565 swing low from December will violate the uptrend price structure and therefore likely leads to a much deeper correction.
Last week’s low completed an 88.6 percent Fibonacci retracement of the prior uptrend. If the last week’s high of 34,060.13 can be exceeded to the upside, then the Sensex might have a chance of bouncing higher. Until a breakout above last week’s high downward pressure remains dominant.
Cryptocurrencies: rock my world
Cryptocurrency enthusiasts had their world rocked once again last week with most coins dropping precipitously within a relatively short period of time. There was a confluence of factors that may have contributed to the wave of selling including:
Hacking – reports have circulated that trading robot apps connected to Binance, a top cryptocurrency exchange were hacked.
Fear of regulation – the US Securities and Exchange Commission announces a plan to regulate crypto exchanges as securities exchanges, adding a layer of regulation to the industry operating in the US.
Large supply – the bankruptcy trustee for Mt. Gox sold approximately $400 mln of Bitcoin and Bitcoin Cash since late September and it is reported there is an estimated $1.8 bln still to be sold. Of course, this raises fears that a large supply has been and will continue to weigh on prices for some unknown period of time.
Although the news seems to have played some part in spooking the market, in almost all cases the charts were already bearish, pointing to lower prices. The news may have just accelerated the speed in the direction the price was already heading. For those nimble and able to sell short, some nice opportunities presented themselves.
IOTA and Dash were the biggest losers, with IOTA falling $0.53 or 27.9 percent to end at $1.38, and Dash down $109.40 or 18.1 percent to close at $494.88. Dash remains in a clear downtrend indicated by its trend line, moving averages and price structure (lower highs and lower lows). The price broke through the support of the 200-day MA and is testing support of the February swing low of $376.05. Last week’s low was $438.80.
Although falling $0.07 or 8.4 percent to end at $0.82, Ripple tumbled the least out of the eight cryptos. Earlier in the week, Coinbase killed rumors that it would be adding Ripple to its platform. XRP remains in a downtrend but above its 200-day MA, whereas a number of other major cryptos are below their 200-day MAs. Following just behind Ripple is Litecoin with a 12.8 percent decline. Litecoin fell $27.28 to close at $186.04 and is flirting with the resistance of its 50-day line. Until last week’s decline, it had held above support of the 50-day for the prior couple of weeks.
Ethereum: bounces off solid support, but will it continue to hold?
Ethereum ended down $129.89 or 15.2 percent last week to close at $724.61. It remains in a clear downtrend on a daily basis and is below the 50-day line which continues to fall, but above the 200-day MA, which is still rising. Last week’s low was at $637.73, right around the confluence of both the 78.6 percent Fibonacci retracement and the 127.2 percent Fibonacci projection. The projection also completed an ABCD pattern or measured move where the second leg down off the swing high at point A was around 127.2 percent of the price change in the first leg down.
The key resistance to watch is the nearby downtrend line. The ETH/USD pair would need to close above that line on a daily basis before there some sign that the bounce off last week’s bottom at D may continue. If the price falls further below last week’s low then next watch for support around the confluence of several Fibonacci price levels around $612.67. After that, there is a price zone from approximately $587.07 (200-day MA) to the most recent swing low of $565.54.
IOTA: showing relative weakness
IOTA has been falling in a well-defined downtrend since the peak at $5.80 in December. Not only it was the weakest performer last week but it is also the worst performer so far in 2018, down 60.6 percent. As of last week, it takes a unique position technically as it is the only crypto out of the eight followed that fell below its prior swing low from February. This is a sign of relative weakness when compared to the other seven cryptocurrencies on our list. The low from February was at $1.20, and last week the IOTA/USD pair dropped to $1.136 before reversing higher. Further, the cryptocurrency is now clearly back below its 200-day MA (purple line) as of last week’s drop, after being above it for most of the past several weeks.
Resistance at the 200-day MA is now at 1.71, with the downtrend line not far away. If you look at the brown falling 50-day line on the enclosed chart, you can see it has been following the downtrend line for the past couple of months. This means that a bullish breakout of the line must also quickly be followed by a breakout above the MA, which is now at $1.965. Until then the downtrend continues.Read More
Cryptocurrency and Equity Markets: Weekly Performance OverviewApril 23, 2018 6:57 am
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Global Equity Markets: fear and uncertainty returns
Stocks took a beating across the globe last week with the U.S. market getting hit the hardest. The S&P 500 Index dropped by 5.95%, its largest weekly loss in over two years. A culmination of factors seems to have spooked investors, all within the larger context of a shift towards higher interest rates.
The potential for a trade war was boosted as China announced retaliatory measures in response to the U.S. president’s plans to institute tariffs against the world’s second-largest economy.
According to China’s ambassador to the U.S. the response could include scaling back purchases of Treasuries, something global macro bears have been warning about for years.
Meanwhile, sentiment towards U.S. tech companies, which of course have global reach and have led the U.S. bull market, took a turn for the worst. Facebook is leading the sentiment shift as it tackles or fails to effectively address privacy issues that have recently come to light, depending on your point of view. The stock is down 18.6% off its record high of $195.32 from January, and its weakness is seen as a symptom of a shift in the stock market towards greater uncertainty.
The S&P 500 Index ended the week at a key potential support area defined by the confluence of the brown 200-day moving average (MA) and the 78.6% Fibonacci retracement line. Support could be seen here and if not it will give credence to the bear’s argument for a deeper correction. June 2016 was the last time that the index dropped below its 200-day, and it didn’t last long.
U.K.’s FTSE 100 Index: bear trend continuation
A bear trend continuation signal was generated last week in the FTSE Index as it fell below prior support of 7,062.10 with confidence, as the week ended in the bottom quarter of the range. The 78.6% Fibonacci retracement area was reached, and short-term support could be seen leading to a bounce.
On the other hand, a break below last week’s low of 6,877 will likely lead to a drop down to the next support zone from around 6,790.7, 50% retracement of a larger uptrend, and prior support of 6,677. Note that the FTSE is well below its 200-day MA (brown line).
German DAX Index: sitting on the edge
The German DAX Index is again testing support and looking like it just might break through it. Near-term support is from the most recent low of 11,830.98 and last week’s low of 11,818.70. A decisive drop below last week’s low will have the index next heading towards the confluence of support around the long-term uptrend line and 50% retracement line at 11,421.44.
If that doesn’t turn the descent, then the DAX is heading towards the confluence of the 61.8% Fibonacci retracement at 10,908 and prior resistance around 10,820.
Cryptocurrencies: continued recovery anticipated
Although five out of the eight cryptos tracked in the table below were higher for the week, it wasn’t by much. There were a number of key developments that seemed to impact investor sentiment in support of either a bullish or bearish outlook. Overall, on a technical basis, most cryptos remain in clear downtrends and are below their respective 200-day moving averages, as well as being below their downtrend lines. The exception is Litecoin, which is discussed in some detail below.
Nevertheless, good trading opportunities can occur on bounces given the high volatility levels seen in cryptos. We anticipate further strengthening this week following lows made one to two weeks ago depending on the coin.
On the bearish side, we saw Twitter announce plans to ban crypto advertising and join Facebookand Google’s previously announced plans to ban such ads. In other words, all three of the top online advertising venues will start blocking crypto related ads. Nevertheless, in the bigger picture, this should help screen out scams and fraud and will be good for the market as it will help build confidence.
In Japan, the Financial Services Agency issued a warning to the Binance Exchange, the largest exchange in the world by volume. Binance was originally located in Hong Kong then moved to Japan. It has been operating in Japan without a license, which is required. Now, following the warning, Binance has decided it wants to relocate to Malta. This announcement has caused some concern from crypto enthusiasts as there could be deeper problems hiding beneath the surface.
On the bullish side, there was some relief in the market following the G20 meeting last week in Argentina as they did not institute any particular clampdown on cryptocurrencies and instead suggested that tighter regulation would be needed at some point. This seems to postpone any further action by the G20 nations for the near-term.
Litecoin: showing relative strength
Litecoin has been and continues to be in a stronger technical position relative to the other cryptos. As you can see in the chart below it is above both the long-term downtrend line and the 200-day moving average (brown line). It broke out above the downtrend line in mid-February and has since pulled back, in a relatively controlled low volatility manner, to test the line as support during the most recent pullback, low of $137.12. Support was strong though as it kicked in above the line at the 200-day MA. Note that support was also seen around the 200-day MA at the bottoms in February. This is all bullish price behavior that should lead to higher prices.
A breakout above the one-month downtrend line will trigger a new bullish signal, and the LTC/USD pair could then accelerate its advance. First, watch for a breakout to trigger on a move above $165.50. Strength is then confirmed on an enthusiastic rally above $175.50.
IOTA: the strongest performer of the week
A potential head and shoulders bottom pattern has formed in the chart of IOTA. It was the strongest performer last week, rising $0.27 or 24.9% to $1.36. As with all chart patterns, a breakout is needed to confirm the validity of the pattern before a trade signal is generated. In this case, a breakout occurs on a decisive move above 1.53.
The minimum target from the reversal pattern is approximately $2.03. Meanwhile, a drop below the bottom of the right shoulder at $1.24 changes the pattern structure and may lead to pattern failure.Read More
Equity and Cryptocurrency Markets: Weekly Performance ReviewApril 23, 2018 6:47 am
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Global Equity Markets: Possible recovery in the works
Most major equity markets moved into recovery mode last week with gains above 1.0%, following selloffs in the previous week. Global trading was quiet as the week came to a close given that many markets were closed for the Easter Holiday on Friday, and some in Europe will be closed on Monday.
Investors are now looking to positive earnings surprises to help propel the markets higher as we finish the first quarter of the year. Threats of a trade war by the Trump administration and a hammering of technology stocks has been a cause for concern recently. Global tech leaders including Facebook and Amazon have faced pressure, and that concern has spread throughout the markets with investors moving to risk-off mode.
At least for the short-term, it looks like we may be shifting given last week’s somewhat consistent positive performance among major equity markets. Nevertheless, a most of the indices will be heading up into overhead resistance if they do go higher and this could mute the advances.
BSE Sensex: Bullish pattern setup
The BSE Sensex 30 Index has formed a potential bullish falling wedge during the most recent correction following a record high in January. If the bottom has been set at the 32,483.84 low from two weeks ago, then an upside breakout will be triggered on the move above the downtrend line. Last week’s high of 33,371.04 and a two-week high can be used as a proxy for the line. The bottom has formed around support of the 200-day moving average line (brown) and prior support and resistance over a number of months in 2017. Multiple support indicators coming together can enhance the significance of the price support zone.
The recent touch of the 200-day MA is the first time the Sensex has hit it in more than a year. Frequently, once the 200-day MA is approached as support after being above it for months, it tends to act as support. A bullish wedge is a trend continuation pattern and if triggered has the potential for price momentum to accelerate upward.
S&P 500 Index: Continues to hold long-term support at 200-day moving average
Unfortunately for investors in the U.S. markets, the S&P 500 Index ended the first quarter of the year with a loss for the first time since the third quarter of 2015. This behavior is supportive of the idea that the times are changing for stocks as volatility picks up. A quarterly loss for the first time in a while improves the chance that further quarterly losses could occur and it adds to the growing worry among investors as they look ahead over the coming 6-12 months or so.
Regardless, last week the S&P 500 advanced by 52.61 or 2.04% to close at 2,640.87 as it tests support of the 200-day MA for the second week in a row. Watch now for further strengthening off this key support zone with a low of 2,585.89.
Next week investors will be watching the U.S. jobs report carefully and the market reaction for signs of shifting investor sentiment. The jobs report is released on Friday.
Cryptocurrencies: Correction deepens
Threats of further regulation and the growing attack on the ICO model by social media channels kept the pressure on crypto prices. Whereas before, the perceived bad news was sometimes ignored, it no longer is. Twitter confirmed that it will join Google and Facebook in banning cryptocurrency advertisements, specifically in regards to ICOs and token sales. Meanwhile, following the announcement from Binance that it is moving to Malta, Bitfinex, one of the world’s largest crypto exchanges revealed it considering a move to Switzerland. Change can be good but it also creates uncertainty, and that can affect investor sentiment.
It got ugly again last week with three out of the eight major cryptocurrencies followed (see enclosed table) ending below their prior swing lows. Those drops triggered bearish trend continuation signals for each. Dash, Ethereum, and Ripple met the criteria. The other five, Bitcoin, Bitcoin Cash, IOTA, Litecoin, and Monero each fell noticeably and are getting close to their prior swing lows.
Since the major cryptos have been moving pretty much together recently, relative weakness, confirmed bear trend continuation signals, in the few may be a sign of what’s to come within the group. Short-term it looks like support may have been found around last week’s lows, and a bounce could be coming. However, in the bigger picture, since trends usually continue bear trend continuation signals usually lead to further declines past the initial support zone trigger, prior swing low.
At the same time, as seen in the accompanying table, the eight major cryptos have already had significant corrections off their record highs. Note that declines from high areas of last week’s close, not the corrective swing low, which is lower for some. By itself, this would seem to indicate that we are closer to the end than the beginning of the corrections, but downside risk remains high still.
Bitcoin: Finds short-term support
So far Bitcoin has found support at the 88.6% Fibonacci retracement zone with a low of $6,550. That could lead to at least a bounce. However, a drop below that price level will signal a continuation of the short-term downtrend and therefore put the corrective low of $5,920.72 at risk of being busted. Note that the BTC/USD pair has recently tested the resistance of the 200-day MA (brown line) and it reversed the advance. Plus, the price is falling further below the uptrend line. Each indication is an overall bearish sign.
Ripple: Bear trend continues to new low
Ripple reached its most oversold level on the 14-day Relative Strength Index (RSI) momentum oscillator last week as it hit a low of $0.47. That’s right around potential support of the 88.6% Fibonacci retracement level of the long-term uptrend. Even though being overbought by itself is not a signal it may mean we are getting closer to a low for at least a bounce.
The XRP/USD pair triggered a bear trend continuation signal last week as it fell below its prior trend low of $0.5335 and ended the week near the low of the period, at $6,850. A further concern for the bulls is the test of the 200-day MA as resistance several weeks ago. Resistance held at this long-term trend indicator and price turned back down to selloff into last week. A drop below last week’s low will likely lead to a deeper correction and possible acceleration in downward momentum.Read More
Equity Markets vs. Cryptocurrency Markets: Weekly Performance Review: March 31 - Apr. 6April 23, 2018 6:32 am
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Global Equity Markets: Mixed performance
Global equity markets ended mixed last week, ranging from a 2.0% gain for India’s BSE 30 Sensex Index to a 1.4% loss for the S&P 500 Index. Trade war fears have put weight on equities as the conflict between China and the US appeared to intensify with US President Donald Trump threatening new tariffs against China on Thursday.
This followed China’s announcement of new tariffs on over 100 US products on Wednesday. Adding to investors’ concerns is the fact that this conflict is occurring against the backdrop of a trend towards rising interest rates. Needless to say, it’s not clear how this might end and markets are rightly nervous.
On a technical basis, little progress has been made over the past eight weeks or so in most major equity markets. Indices continue to test support following selloffs from record highs reached in January. Uptrends remain in place but stock markets are at risk of falling deeper into a more prolonged correction if recent price support levels are broken.
Trade is expected to remain a key driver of investor sentiment heading into this week with Chinese President Xi Jinping planning to deliver an important speech on Tuesday. Later in the week there is hope for a positive announcement on revisions to the North American Free Trade Agreement (NAFTA) as President Trump, with the Canadian Prime Minister Justin Trudeau and Mexico’s President Enrique Pena Nieto meeting in Peru at the Summit of the Americas.
Also next week, earnings announcements will pick up and surprises can have a respective impact on the market as a whole.
Japan’s Nikkei 225 Index: Bullish wedge breakout
Last week the Nikkei 225 Index was up 0.53% as it broke out of an early-stage bullish falling wedge. It remains to be seen whether upward momentum will be enough to propel the index back above the lower ascending trend channel line where resistance was seen last week.
The breakout did take the index back above the 200-day simple moving average (SMA) (brown), a positive by itself. On the first leg down off the January high support was seen at the 200-day line, which led to a bounce to resistance at 22,502.05. That’s now the potential target from the bullish wedge breakout. However, if the Nikkei does break above the uptrend line, the 50-day SMA resistance zone is close by. It is now at 21,922.87.
In the short term a pullback towards support of the 200-day SMA, now at 21,550.42, could be seen before the index takes another run at resistance.
Hang Seng Index: Weighed down
Hong Kong’s Hang Seng Index has remained under pressure for the past several weeks as it closed lower each time and remains below its uptrend line (lower ascending trend channel). Last week it closed down 0.83% to the lowest weekly close in eight weeks and looks to be heading to its next key trend support zone around the 200-day SMA.
The 200-day line, now at 28,927.75, can be combined with the 38.2% Fibonacci resistance line at 28,903.00 and prior resistance (now potential support) around 28,588.50 from 2015, to create the next major target zone if the index keeps falling. If instead the index rallies, it will have to contend with a good amount of potential resistance before it could get going.
All of the major cryptocurrencies in the accompanying chart were down last week with prices under pressure into the close. Bitcoin Cash and IOTA dipped below the prior week’s low but have not seen downward momentum pick up just yet, while the others held above support of the previous week’s low.
Bearish trends are expected to continue until there is some sign of reversal on either daily or intraday 2-hour or 4-hour charts. Both Bitcoin and Ethereum are starting to show potential reversal patterns on their 4-hour charts and these patterns are discussed below.
Why have crypto prices remained under pressure? Thomas Lee, Head of Research at Fundstrat Global Advisors thinks he has an answer – investor selloff prior to US tax day. Appearing on CNBC last week, Lee referenced his recent report which calculates a minimum of $25 billion in capital gains taxes owed by US Bitcoin and cryptocurrency investors for profitable sales that occurred in 2017.
This is a massive amount. Unless most traders put the money for taxes aside at the time of the sales, which is unlikely, investors are going to be selling cryptos they still hold now in order to meet their obligations, thereby putting downward pressure on the prices. Lee feels a recovery will likely not happen until after the tax season but still maintains his $25,000 year-end price target for Bitcoin.
Ethereum (ETH/USD): Potential 4-hour head and shoulders bottom
The overall technical situation in Ethereum is bearish as it remains in a clear downtrend. However, a short-term pattern has formed that could lead to a tradeable bounce. So far the decline off the January top of $1,424.30 has been 74.9% as of the most recent low of $358.00.
Four weeks ago the downtrend broke through key support of both the uptrend line and 200-day SMA (brown), as can be seen in the daily chart, and it kept falling. Price has since moved clearly below the 200-day line. Nevertheless, the slope of the 200-day line is still rising, although not by much, and the 50-day SMA has not yet closed below the 200-day.
A retracement back towards resistance of the trend line and 200-day SMA at some point is a real possibility, but first there must be a signal to indicate that buyers are getting more aggressive.
Ethereum has been consolidating essentially sideways for the past nine days or so as it attempts to find some degree of bottom. During that time a potential head and shoulders bottom trend reversal pattern has formed while the Relative Strength Index (RSI) momentum oscillator is showing a bullish divergence.
A bullish breakout of the pattern occurs on a decisive move above $418.79, with a minimum target from the pattern at around $478.67. If Ethereum keeps rising from there, the next level to watch for is resistance around the downtrend line and then the 200-day line, which is now at $612.91.
Alternatively, a drop below $358.00 is a bearish pattern failure.
Although not as well formed, Bitcoin also shows a possible head and shoulders bottom pattern in its 4-hour chart. A bullish breakout occurs on a move above $7,506.84 and is confirmed upon a daily close above that price level.
The minimum target derived from measuring the pattern is approximately $8,422.68. However, higher potential target areas include the 50-day SMA at $9,037.80, followed by the 200-day SMA and downtrend line now around $9,488. A possible failure and bearish signal is first indicated on a drop below the right shoulder at $6,510 and confirmed on a move below the head at $6,427.16.
Equity Markets vs. Cryptocurrency Markets: Weekly Performance Review: Apr. 7 - Apr. 13April 23, 2018 6:17 am
The market data is provided by the HitBTC exchange.
Global Equity Markets: Waiting for clarity on direction
There wasn’t a lot of decisive action on the global equity markets last week as uncertainty seemed to prevail once again. Nevertheless, the seven major markets that we followed were all green on the week’s end, which shows the improvement of their year-to-date performance as a group. Both the Hong Kong Hang Seng Index and India’s BSE 30 Sensex Index are now positive for the year.
Again, the culprit seems to be uncertainty over the impact of trade tariffs between the U.S. and China and there are characteristics of a bull market that is growing old. Investors are looking for some direction and clarity as to what sentiment will start to drive the market next and in which direction. So far, earnings reports have not provided that clarity, but that could change at any time, making earnings an important indicator to monitor for the coming week.
S&P 500 Index: Can it bounce from here?
The 200-day simple moving average (SMA) (brown line) is an important indicator of the strength or weakness of the long-term trend, and it is very widely followed by institutional investors.
So far, the S&P 500 has tested its 200-day SMA as support over two distinct periods of time and on multiple days, and it has held. What is not clear yet is whether support of the 200 line will continue to hold or whether price will break through the bottom. After the price hit the 200 line most recently, bullish signs have generally not lasted more than a day.
Fortunately, if we zoom down to a shorter time frame, such as the 4-hour chart as seen in the next image, there is a clear potential head and shoulders bottom trend reversal pattern present. A rally above last week’s high of 2,680.26 would give a breakout signal. Based on a classic measuring objective for this pattern, the target would be approximately 2,790.2, which ties with the 78.6% Fibonacci retracement zone and the most recent swing high from March.
German DAX Index: Facing downside potential on upward moves
The German DAX Index broke out of a descending wedge type pattern last week. Although it seems difficult to identify the pattern as a wedge, the underlying activity that it represents has similarities. Essentially, it is a declining consolidation pattern and it is considered to be bullish. We got some sense of its bullish potential on an upside breakout last week as the index rallied above the downtrend line across the top of the pattern. Further upward movement is now possible.
Nevertheless, a word of caution is warranted. You can see how the 200-day SMA (brown line now at 12,659.92) representing the long-term trend has been angled down. This is generally not a very bullish sign. Therefore, although there is likely some short-term upside potential left in this index, the overhanging weight of potential supply will probably keep an advance muted.
Depending on how high the current rally goes, we could be seeing the early signs of a potential head and shoulders top pattern. Of course, we will have to wait and see.
Cryptocurrencies: Long awaited rally
Buying enthusiasm returned to the crypto market by Friday, with all major coins, as shown in the above chart, seeing significant rallies over the week – some greater than 10%. Bitcoin was up over $1,000 in the first hour following its breakout of an intermediate-term downtrend line on Friday.
It’s not clear what was the actual trigger for the widespread rally, but there were a few developments that probably encouraged buyers. Whether the sharp advances have the potential to keep going will be determined by market behavior over the coming one to two weeks, as the speed of the ascent was likely influenced by a short-squeeze as shorts exited and reversed direction.
A report coming out of Indonesia from a fintech firm, Blossom Finance, stated that their internal Shariah advisor and Shariah compliance officer had determined that cryptocurrencies, Blockchain and Bitcoin (BTC) are “generally permissible” under Sharia law.
It remains to be seen whether this assessment will stand up to scrutiny by other Islamic finance scholars, which is necessary if it is going to gain wider acceptance within the Muslim community. It is not unusual to find disagreement within the community on such issues.
On the institutional side there were a couple recent developments to help turn the tide from bearish to bullish. Well-known hedge fund titan George Soros’ family office announced they would be adding cryptocurrency to the assets they trade and invest in, while the Rockefeller’s venture capital arm, Venrock, revealed it was expanding into cryptocurrency investing by partnering with the investment firm CoinFund.
Meanwhile, the billionaire venture capital investor and early cryptocurrency enthusiast Tim Draper came out with a new price target of $250,000 for Bitcoin by 2022.
IOTA (IOT/USD): Still showing relative strength
IOTA was the top performer for the week, rising $0.39 or 41.8% to $1.32 at the week’s close. It has jumped as much as 65% off its $0.915 trend swing low from two weeks ago as of last week’s high of $1.513.
The low from two weeks ago is in a solid area of potential support and last week’s strong price behavior seems to confirm that. There were a couple of indications that support may have been found including the long-term uptrend line (not perfect, but it is in the general price area), and the completion of the 88.6% Fibonacci retracement level.
This is a lesser known Fibonacci ratio derived from the square root of 0.786. It can work particularly well in both crypto and forex. In addition, the low was in a minor area of short-term resistance (now support) from November of last year.
Last week’s rally triggered a bullish breakout of the long-term downtrend line as well as the 200-day simple moving average on the 4-hour chart. The 200 line has done a good job of providing confirmation to the significance of the falling trend line, as you can see how they’ve been identifying a similar area of resistance since mid-January.
Next we need to see confirmation of strength with a move above the most recent swing high of $1.53. In the meantime, pullbacks can be monitored at lower price areas to enter for short-term rallies or to build a position. As of last week the odds have improved that the recent low from two weeks ago may be the bottom of the four-month correction.
Monero (XMR/USD): Bull wedge breakout
Although the relative performance of Monero was not great, as it came in seventh out of eight, it did provide a strong bullish signal. A descending wedge is a classic chart pattern that has a tendency to break out to the upside with force. That force was seen in the wedge breakout last week on Monero.
It’s not clear yet whether this will be the lasting bottom for the coin but it does provide a very tradeable signal. Do note that the price support area has been visited three times so far since the correction began in December.
Considering last week’s $201.74 high, Monero has advanced as much as 25% from its $161.10 low from two weeks ago. Last week specifically, it was up a respectable 16.8%, finishing at $188.51.
Since the initial breakout has already occurred, Monero can be monitored for pullbacks that should provide an entry point at lower prices. A drop below $161.10 would signal a failure of the bullish pattern, but otherwise we can anticipate higher prices.
The classic objective from this pattern would indicate a minimum target of around $235.96. Nevertheless, this crypto will be rallying into potential resistance around the 200-day SMA, which is now at $224.72. This should be kept in mind relative to your investment or trading strategy.Read More
IOTA: Weekly Price AnalysisApril 23, 2018 5:56 am
Weekly Price Analysis is a column where our readers decide which coin will be analyzed. Make sure to follow our social media not to miss the next questionnaire.
The market data is provided by the HitBTC exchange.
The ugly spat between the IOTA team and a group of external security researchers is not helping matters either. Some believe that the IOTA founder and his team handled the whole episode immaturely, raising questions on the capability of the team to take the project further. Nevertheless, IOTA’s price has not slumped, which shows that the investors have not given up on the team completely.
Now, let’s look at the technical picture of the IOTA/USD pair.
IOTA remained range bound from mid-June to mid-November of last year. From early November to early December, the cryptocurrency rallied from a low of $0.33870 to a high of $5.59, which is a 1550 percent return within five weeks.
After that, the cryptocurrency remained volatile but range-bound near the highs for five weeks. It broke below the range and slumped to a low of $1.2 in early February. Since then, this is the fourth week of consolidation near the lows.
The previous consolidation had lasted only for five weeks. So, with the other coins attempting a pullback, can we expect an up move in the IOTA/USD pair?
Let’s look at the daily charts to identify the levels that will confirm that the consolidation has ended.
The cryptocurrency is attempting to hold the 78.6 percent retracement of the entire rally from $0.33870 to $5.8. It has largely remained range-bound between $1.5 to $2.2117 since Feb. 02 of this year.
Additionally, we find a symmetrical triangle formation at the lows with price attempting to break out of it.
The moving averages are turning down, but IOTA has risen above the 20-day EMA. The 50-day SMA is close to the upper end of the range at $2.2418.
If the price breaks out and closes (UTC) above the range, it has a pattern target of $2.9234. Visibly too, the major resistance is at $3 with only minor resistance at $2.62.
On the other hand, if IOTA breaks down and closes below the range, it has a pattern target of $0.7883. At the same time, the support zone between $1.1 to $1.2 is likely to attract buying.
So, what should traders do?
We don’t find any trade setups inside the range. However, once the price breaks out and closes above $2.23, long positions can be initiated with a suitable stop loss. If the bulls succeed in breaking out of $3, a rally to $4 is possible. Traders should avoid bottom fishing if the virtual currency breaks down of the range.Read More
Bitcoin, Ethereum, Bitcoin Cash, Ripple, Stellar, Litecoin, Cardano, NEO, EOS: Price Analysis, April 21April 21, 2018 2:27 pm
The Barclay Cryptocurrency Traders Index monitors the returns of the 19 funds that trade in virtual currencies. It has taken a beating this year and is down 43.1 percent year to date.
However, funds that are market makers and who trade in arbitrage strategies are having a field day, as some have gained 30 percent in the first quarter.
This shows that whatever the market condition, the traders can always develop a strategy to profit from it.
The miners are not that lucky. According to Morgan Stanley, the miners of Bitcoin will remain unprofitable if prices remain below $8,600.
The big problem is that no one knows how to evaluate the leading cryptocurrency. The targets range from $100 to $100,000 and higher, but when prices don’t fall even during bad news, it is usually a sign that the bottom is around the corner. We believe that most digital currencies have bottomed out, at least in the short-term.
Bitcoin has finally broken out of the 50-day SMA after remaining range-bound for seven days. Though this is a bullish sign, we still don’t see a strong buying conviction, as the up move is lacking momentum. This shows that the market participants are cautious of this rally.
The next target on the upside is $9,400, where we suggest booking partial profits. Once this level is crossed, a move to $10,000 is possible.
If prices fail to hold above the 50-day SMA, it will be a bearish sign and prices can fall back to the first support level of $7,900. Therefore, we suggest the traders should keep the stops on the BTC/USD pair at breakeven.
Ethereum convincingly broke out of the 50-day SMA on April 19, which is a bullish sign. It has become positive and should continue to rally towards $730 levels.
Though the 50-day SMA is still falling, the 20-day EMA has turned up. A bullish crossover will provide further strength to the ETH/USD pair.
Though we are bullish, we have not suggested any trade on Ethereum. We will wait for a dip or a consolidation to enter fresh long positions.
In our previous analysis, we had noticed that Bitcoin Cash doesn’t face resistance at the 50-day SMA and that is what happened. The price zoomed past the moving average on April 19 and touched our first target objective of $1,114.
Traders can book partial profits at the current levels and keep a trailing stop on the remaining position. If the bullish sentiment continues, the BCH/USD pair can rally to $1,300 and then to $1,600.
However, we need to caution the traders that the cryptocurrency has a history of vertical falls, so it’s better to protect the paper profits with a close stop loss.
We should never allow a profitable position to turn into a loss.
There is a minor resistance at $0.9, above which, the XRP/USD pair can rally to $1.08 levels. We like the way it has rallied over the past three days, which shows that the buyers are back. The moving averages are also close to a bullish crossover, which is another positive.
Traders can hold the remaining positions with a close stop loss.
The break out can carry the XLM/USD pair towards its next target objective of $0.47. That’s why we had recommended trailing the stops higher on the remaining position.
The moving averages have completed a bullish crossover, which is a bullish sign but it is unlikely to be a one-way move to the highs. Hence, the stops should always be trailed higher.
As prices near $0.47, please keep tighter stops.
After remaining range bound for a few days, Litecoin has found buying support. It is currently attempting to break out of the critical overhead resistance from the downtrend line and the 50-day SMA.
If successful, the LTC/USD pair will become positive and rally to $178 levels.
The logical stop loss for the trade is at $127, which doesn’t offer us a good risk to reward ratio. Thus, we shall wait for a new buy setup to form before recommending any trade on it.
If prices turn down from the resistance, it should find support at $141.
We suggest trailing stops higher on their remaining position, instead of booking profits at 0.000035.
The ADA/BTC pair has started a new uptrend, after being in a downtrend for months. During the start of a new uptrend, the RSI can remain in the overbought territory for some time. Hence, traders should not get perturbed with the overbought levels on the RSI. Keep trailing the stops higher to lock in the paper profits. As prices move up, please tighten the stops further.
NEO has finally broken out of the 50-day SMA, but it will face stiff resistance at the $80 mark, from the downtrend line of the descending triangle and the horizontal line.
We suggest booking partial profits at this level and raising the stops on the rest to breakeven.
If the NEO/USD pair breaks out of $80, it will become very bullish because the failure of a bearish pattern is a positive sign. After breaking out of the downtrend line, there is minor resistance at $92-$94. If this level is crossed, the digital currency should pick up momentum and aim to hit $140.
Hence, we are proposing to keep a part of the position open to benefit from the probable rise.
EOS has broken out of the ascending channel and the horizontal resistance at $10.0650, which shows bullishness.
We had initially purchased with a target objective of $11, but looking at the bullishness, we believe that the EOS/USD pair can now rally to $12, which will also coincide with the resistance line of the ascending channel 2.
The remaining positions can be held with a trailing stop loss, which can be kept just below the support line of the ascending channel 2.
The digital currency will lose momentum if prices again fall into ascending channel 1.Read More
France and Germany: How Regulatory Traditions in Two Countries Could Affect EU LegislationApril 21, 2018 8:28 am
The first meeting of G20 finance ministers and central bank governors this year was anticipated by the crypto community after a series of separate words and deeds on regulation among the world’s biggest players. But no joint framework declarations followed the meeting. With the Financial Stability Board’s cautious statements casting chill over individual members’ enthusiasm to discuss crypto matters, all that came out of the summit was merely a bunch of baby steps in the anticipated direction. Now again, the community is left to do what it has been doing all along: interpreting subtle cues and contradictory signals that emanate from policymakers representing individual nation-states.
France, one of the vocal proponents of cryptocurrency regulation at the G20 level, has been a major hotbed for contradictory signals lately. In a recent about-face, French regulators unveiled a set of new initial coin offering (ICO) rules that look extremely lenient towards both entrepreneurs and investors. The development came across as utterly unexpected, especially given the fact that merely days before the announcement the same regulatory agency cracked down on 15 crypto-related websites for unlawfully marketing investment services.
Germany is another European powerhouse spotted proposing a unified approach to crypto regulation earlier this year. Much like its neighbor, Germany seems to be swinging its view, though in a less dramatic way. Having issued a series of warnings regarding the speculative character of cryptocurrency trading and ICO investments last November, German authorities now clarifying some of their stances and issuing promising winks.
As the European Union’s dominant powers, this duo will likely lead the way in crafting any potential bloc-wide standards for governing Blockchain and the wealth of its applications. Despite stark distinctions in the way their legal systems and regulatory regimes operate, in recent decades France and Germany have exhibited quite a few common patterns in handling new regulatory challenges brought about by the rise of internet industries.
From limiting online speech to protecting user data to levying taxes on tech giants, both have demonstrated a tremendous appetite for asserting their sovereignty over the online realm. Presuming that the spirit of broader internet governance is highly likely to carry over to Blockchain regulation, a closer look at the already established patterns is useful for envisioning what the imminent cryptocurrency related policies might look like.
Infrastructure & ISPs
One thing to remember about continental Europe is that historically the role of the state and centralized bureaucracy has been greater than those in common law-based Anglo-Saxon systems. The tradition of statutory law along with corporatist political culture prescribed not just an overall embrace, but expectation of an active regulatory involvement on behalf of the state in the most important spheres of domestic policy. Both states have certainly lived up to these expectations.
The French government has been directly managing communication networks since the very early stages of their mass expansion. The first network to connect vast numbers of French people was not the internet but rather the homegrown and highly centralized Minitel. Once the functional superiority of the global network became evident to the government, it took measures to boost internet adoption – again, via a state program. Content blocking requirements are embedded into the legislation, and it is internet service providers (ISPs) that are held liable for violations. ISPs do engage in some degree of self-regulation, but usually a governmental response precedes any self-imposed restrictions. Blocking is amply used to enforce copyright and prevent illicit activities such as unlicensed gambling or the distribution of content depicting child abuse.
A vastly different set of domestic rules and practices is in place in the German system, where the idea of “regulated self-regulation” took hold. At least in part, it emerged as an unintended consequence of German federalism: while the debate as to whether policing web content should be a prerogative of national or federal authorities dragged for years, ISPs were able to use this time to put together a working system of industry associations. A part of this system is a self-regulatory authority that partners directly with search engines. As a result, no direct blocking exists, since filtering of content happens on the stage of indexing. ISP’s are not held liable for illegal content that travels through their pipes. Communication industries command a powerful network of organized interests that is strongly opposed to censorship.
Online speech regulation
Both France and Germany have embraced a similarly aggressive stance in policing some forms of online expression. French law criminalizes racist and anti-Semitic speech both offline and online; each new government routinely puts forward a new comprehensive state program to fight hate in the public sphere. State officials’ faith in power of direct content regulation seems to be unfailing: for one, President Emmanuel Macron pledged in January to roll out an anti-fake news law by the end of 2018.
The German legislative quest against hate speech culminated in the 2017 “Facebook law,” which imposed heavy penalties on social media platforms for failing to quickly remove illegal content from public view. Facebook and Twitter responded by fielding record numbers of German-speaking moderators in early 2018. The effects of these mutual accommodations are yet to be seen. Meanwhile, German law enforcement occasionally surprises particularly bad-mouthed folks with raids on their homes.
Another similarity between the two nations has been the degree of protection afforded to internet users’ personal data, as well as their willingness to enforce this protection vis-à-vis Facebook and Google. Germany’s competition-regulating authority has gone after Zuckerberg & Co, citing alleged abuse of their dominant position in the personal data market. France took issue with Facebook’s apparently shady practices of harvesting WhatsApp users’ data without consent.
A different privacy battle, now against Google, unfolded over the EU law granting users the “right to be forgotten” – a requirement for search engines to remove URLs containing irrelevant or outdated personal information upon individuals’ requests. A court in Munich issued an order demanding that Google’s URL takedown procedure be changed in a way that does not allow the purged links to resurface as easily as they do now. Meanwhile, France’s lawsuit against the search giant, seeking to extend the right to be forgotten to jurisdictions outside of the EU, will be heard by the EU Court of Justice after three years of litigation in the lower courts.
GAFA is an acronym that EU policymakers often use to refer to global (essentially, American) tech giants with massive European presence. Even though it originally stands for Google, Apple, Facebook, and Amazon, the term has come to connote any platform of comparable stature, used mainly with regard to the need for holding them accountable. Taxation is one GAFA issue that European politicians have been hammering on throughout most of 2017 and early 2018. It is no secret that big tech companies have been ingenious in minimizing their tax obligations on their European profits for years, but now it appears that enough is enough for the EU.
Germany and France have already tackled the issue at home: both nations introduced taxes on video distributors like Youtube and Netflix, with proceeds flowing to support production of local content. French government now seeks to advance EU-wide rules whereby digital companies would be taxed on revenues rather than profits, a move that will presumably alleviate the practice of registering the profits in low-tax EU jurisdictions instead of where they were earned. A ruling coalition in the German parliament proposes a slightly different solution: a consolidated tax system proportionately allocating companies’ European profits according to the geographic location of their customers. Regardless of whichever approach ultimately prevails, there is little doubt that the days of GAFA’s European tax havens are numbered.
However peculiar and novel cryptocurrency regulation may seem, it does not emerge in a vacuum. Like any other sphere of governance, it bears the spirit and coloration of the wider system of legal control within which it operates. The story of Switzerland is canonic in this sense: it is hardly surprising that a country with traditionally little government presence and a tremendous record of accumulating and managing foreign wealth is emerging as a booming crypto hub.
As Marc P. Bernegger, Swiss crypto entrepreneur and Board Member of the Crypto Finance Group in Zug, put it in an interview for Cointelegraph:
“Switzerland has in general a very liberal approach and far less rules and regulation than other countries. With our direct democratic system the whole government is already decentralized, which seems to be one of the reasons for its crypto friendly behaviour. (…) Today literally every week there are several new blockchain companies moving to Crypto Nation Switzerland.”
However, a principle that seems so intuitive in the Swiss case is less frequently invoked with regard to France and Germany. As common wisdom situates them both in the line of “progressive” liberal nations, many in the crypto community anticipate some latitude to be afforded by these governments. Yet, the ways in which French and German authorities have been handling tech industries suggests that we should be modest in our expectations.
Both states clearly have a penchant for regulation. Regardless of whether it is a direct legislative control in the French style or a more “distributed” regulatory system akin to the German one that is employed for domestic use, on the outer flank European nation-states are equally protective of their sovereign realms. In the face of global forces tapping into their jurisdictions, both Germany and France prefer to act aggressively, whether it has to do with protecting citizens’ personal data or levying taxes on digital platforms. Security concerns over financing hate groups or terrorist activities could potentially yield restrictive outcomes, too. All in all, even when the signals that come from the European powerhouses are positive, Blockchain entrepreneurs should not be quick to celebrate: there might still be strings attached.
On the bright side, state involvement in defining the rules of the game is not necessarily a dreadful thing. Since this is not a zero-sum situation, a meaningful dialogue between policymakers and organized industry interests may give rise to arrangements that make sense to all. At least in Germany, such a dialogue seems to be taking place. According to Blockchain Bundesverband, an advocacy group that advances the interests of the German crypto community, the government has begun to address Blockchain regulation in earnest. Dr. Nina Siedler, who is leading the organization’s Token/Finance working group, sounded optimistic on the matter:
“The community wants fair rules, a level field for everyone. Most of the issues are covered by the existing laws, but the problem is that some of the rules are not very specific. The government’s presence in this process is not obtrusive, they don’t want to overregulate. They clearly want to give this rising economy a chance.”
Dr. Siedler also suggested that some of the “grey zones” in Blockchain governance might well be addressed by a coordinated self-regulatory effort. She mentioned that a Europe-wide initiative is currently underway to formulate a Blockchain entrepreneur’s code of conduct, a set of best practices that will delineate the foundational tenets of the industry’s self-governance. This development offers some hope with regard to the future of European crypto regulation. As the case of the German ISPs illustrates, putting up organized interests early in the process of exploring uncharted policy area has a potential to put the whole industry in an advantageous position down the line.Read More
G20 and Cryptocurrencies: Baby Steps Towards Regulatory RecommendationsApril 21, 2018 8:25 am
The conclusion of this meeting, in regards to where the nations now stand on cryptocurrencies, is that a firm July deadline has been put forward for recommendations on how to regulate cryptocurrencies globally.
There was some general uptake and interest in approaching this hitherto unknown and confusing space as countries had, up until now been forging forward mostly on their own in terms of regulations.
However, as the conference kicked off, the buck was soon slowed as the Financial Stability Board (FSB) – which coordinates financial regulation for the Group of 20 Economies – resisted calls from some G20 members to discuss regulating cryptocurrencies at the conference.
Instead, many of the member states, but also a few notable exceptions, decided that cryptocurrencies needed to be examined further, and that more information was needed before any regulations could be proposed.
Therefore the first steps have been laid as July will see G20 nations bringing forward their data and information to begin recommendations on how to go about globally regulating cryptocurrencies.
The announcement came from Argentina Central Bank chair Federico Sturzenegger who said:
“In July we have to offer very concrete, very specific recommendations on not ‘what do we regulate?’ but ‘what is the data we need?’”
This statement essentially indicates that there is at least agreement from some, not all, of the nations that they need to gather enough tangible data and information so that when they do sit down again in July, they can start discussing the next steps towards regulation.
At this stage, it is all very much baby steps, and purely a feeling out stage, but it is at least directional and shows that around the world, economic powers are taking the cryptocurrency market seriously.
However, as is so often the case with a bevy of varying nations with their own ideals, there are already countries going rogue from this first step.
Brazil Central Bank president Ilan Goldfajn said cryptocurrencies will not be regulated in his country, according to news service El Cronista. Furthermore, Goldfajn added that he will not necessarily be following the G20 recommendations.
One thing that was pretty much wholly agreed upon by the G20 was that the Financial Action Task Force (FATF) – an intergovernmental body formed to fight money laundering and terrorist financing – would have its standards applied to the cryptocurrency markets in the respective countries.
“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”
In the same draft statement, more insight was given as to how these financial powerhouses view cryptocurrencies. The overall view is that the G20 “acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly”
However, the caveat is:
“Crypto assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”
Furthermore, the concerns for the G20 surrounding cryptocurrencies is that they believe that they “lack the key attributes of sovereign currencies. At some point they could have financial stability implications.”
Focus on old rules, not making new rules
However, the FSB made a decision not to embark on this building of global cryptocurrency regulation at the conference because it intended to shore up a few of the existing economic rules, rather focusing in on existing regulations. FSB Chair Mark Carney said:
“As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms.”
Additionally, the FSB’s view of cryptocurrencies is that they “do not pose risks to global financial stability at this time.”
Bitcoin’s price reacted fairly well to the news that the financial superpowers of the globe would not be honing in on digital currencies yet, and managed to break out of a slump that saw it dip below $8,000 over the weekend.
It has further jumped to over $9,000 on the back of these positive talks held by the economic powers of the world on cryptocurrencies.
Where they will stand in July
It is important at this juncture of global summits to look deeper at where the G20 nations each stand when it comes to their own cryptocurrency regulation. In doing this, one can start to see how broadly split opinions are over the spectrum – from positive and embracing, to negative and banning.
Brazil has already said it will not necessarily be following the path laid down by the G20 when it does eventually come to designing a global regulatory framework, and no doubt, others will follow based on how they have gone about things so far.
Argentina, despite being an important South American hub for cryptocurrencies, has never really flourished with interest in the digital currency wave sweeping the globe. The number of Bitcoin users in Argentina is still pretty small, in truth, and barely registers on statistics that track worldwide usage of the currency.
However, where Argentina has an edge in cryptocurrencies is the use of them for buying everyday tangible assets. They are also currently being used as a go-around for the onerous restrictions on importing foreign currency.
But the use of an unregulated currency to divert governmental policies screams of something that will be up for regulatory pressures in the near future, perhaps when it becomes more popular.
Australia is one of the few countries that has actively started building its own cryptocurrency regulations that suit it, without much outward glancing for hints or presidents. For example, the government recently addressed exchange regulations with a mandatory law.
The Australian government has implemented a law mandating Bitcoin exchanges operating in the country to register with the anti-money laundering agency Australian Transaction Reports and Analysis Centre (AUSTRAC).
The move is aimed at imposing restrictions on digital currencies, particularly Bitcoin, due to their continuous growth and adoption in the mainstream financial sector.
Brazil and its government have seen a lot of potential in Blockchain and to that end have started upping their efforts into research and development of the new technology.
The Brazilian central bank Banco Central do Brasil is ramping up its research and development efforts on Blockchain technology. The central bank is reportedly experimenting with “just about every Blockchain platform it can get its hands on.”
Canada is another country that is in a similar boat to that of Australia as they have started the arduous journey of regulating, but in a positive and friendly manner. The Canadian government has given the go ahead to its first ever Blockchain-based Exchange Traded Fund.
Additionally, the Canadian Securities Exchange (CSE) announced that they will soon launch a securities clearing and settlement platform based on the Ethereum (ETH) Blockchain that lets companies raise capital with security tokens.
On the very other end of the scale is China, and more than enough has been spoken about when it comes to China’s view on Bitcoin. The People’s Republic has been hard nosed since it first instituted a nation wide ban on ICOs.
What followed was the banning of exchanges, effectively trying to cut off the citizens from using and trading in digital currencies, and, when that was ineffective, a massive firewall was raised to put the final nail in the Bitcoin coffin in the country.
As one of the nations looking to open up the dialog on cryptocurrency, France’s stance is clearly geared towards building a regulatory framework that can work globally for a currency that is used globally.
“I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion all together on the question of Bitcoin. There is evidently a risk of speculation. We need to consider and examine this and see how… with all the other G20 members we can regulate Bitcoin,” French Finance Minister Bruno Le Maire said.
Germany are also keen on opening up this dialog, having stated before the G20 suggestion was made, that the only way to control cryptocurrencies would be for international cooperation.
“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited,” Joachim Wuermeling, a member of the board of Germany’s Bundesbank, suggested.
India, while not yet banning cryptocurrencies, is clearly not the biggest fan globally when it comes to their operating in the state’s borders.
Bitcoin exchanges are under fire in India, as many of the nation’s top banks have suspended or greatly curtailed functionality on exchange accounts. The State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have all taken strong action toward crypto exchanges, either closing accounts or severely limiting functionality.
Another country that is less impressed with Bitcoin than others, the Indonesian Central Bank has continued its campaign against digital currencies as it ordered a ban on the use of the leading virtual currency Bitcoin as a method of payment in October last year.
The bank claimed that Bitcoin represents neither a legal nor a recognized medium of exchange and payment in Indonesia.
Italy have recently come forward with a decree that aims to classify the use of cryptocurrencies in the country and to list “service providers related to digital currencies.” This is clearly a Bitcoin-friendly move, and one that services the booming Bitcoin businesses that are building around the digital currency.
Japan made headlines a few years back when it announced that Bitcoin was a legal currency, however, its loose approach to regulation has recently been curtailed as more and more issues have forced regulators to step in.
Now, Japanese exchanges are aiming to self-regulator to try and alleviate the pains for the government who have been put under pressure to protect their citizens.
Two trade groups in Japan’s cryptocurrency industry have agreed to form an as-of-yet unnamed organization next month that will self regulate the local crypto market in conjunction with Japan’s Financial Services Agency (FSA), it was reported.
Mexico will soon be joining the likes of Canada and Australia as countries with active cryptocurrency regulations.
The central American nation is just one signature away from regulating cryptocurrency after a law setting out its position passed the lower house.
Combining new resolutions on fintech more generally, including crowdfunding and various aspects of cryptocurrency businesses, the bill now only requires a signature from President Enrique Peña Nieto before it becomes law.
Russia is another major country whose crypto regulatory stance has been well documented. The latest out of the socialist republic is that the government is looking to regulate and control digital currencies to the point of banning access to decentralized exchanges, and working on launching its own coin.
The Russian Association of Cryptocurrency and Blockchain (RACIB) has announced that the government’s long-discussed idea for a state-issued cryptocurrency, referred to as the CryptoRuble, will be launched in the middle of 2019.
The Islamic Monarchy of Saudi Arabia has not had much dealings with cryptocurrencies that have made the mainstream media, but their general approach to such corruption and forms of money laundering are strict and no doubt Bitcoin would be viewed with suspicion.
Saudi Arabia arrested the richest Arab in the world, Prince Alwaleed bin Talal last year – a man hostile to Bitcoin – on corruption charges.
As the epicentre of cryptocurrency in Africa, South Africa has approached the technology with interest and is looking to understand and analyse it before making any forms of stringent and harsh regulations.
The central bank has opened up a sand box for companies to operate in a regulatory safe space in order to assess the outcomes of Blockchain and cryptocurrency solutions.
South Korea has also recently been in the news, for the wrong reasons, when it was announced that it would be banning cryptocurrencies in February after the Ministry of Justice independently announced its plans of banning cryptocurrency trading.
The Ministry did this without the consent of the Ministry of Strategy and Justice and other government agencies involved in the South Korean cryptocurrency regulation task force.
The UK as not stepped fully into the ring of cryptocurrency regulation, but rather has been forthright with its warnings of the dangers that are persistent with cryptocurrency investing.
The Treasury Committee of the UK Parliament launched an inquiry into cryptocurrencies and their effect on UK investors and businesses in February.
The inquiry was prompted by the rising global interest in cryptocurrencies, as well as the ongoing rise and fall of the crypto market since the new year.
The US has had an ongoing regulatory process with Bitcoin as the Securities and Exchange Commission has stepping heavily when it comes to ICO monitoring, but the Commodities Futures Trading Commission (CFTC) has indicated that there is no reason to harm cryptocurrencies.
“Do no harm” was unquestionably the right approach to development of the Internet. Similarly, I believe that “do no harm” is the right overarching approach for distributed ledger technology,” J. Christopher Giancarlo, chairman and witness of the CFTC, expressed in front of the Senate this year.
The European Union
The EU, following along with Britain, who will soon be breaking away, has rather instituted warnings that imposed any set or stringent rules. In fact, the matter of regulating them has not really cropped up very high on the to-do-list.
The European Central Bank’s (ECB) Chair of the Supervisory Board Daniele Nouy said that although she had “no clue” whether new regulatory moves on crypto would come from Europe in the future, involvement of ECB-regulated banks in the sphere was “very, very low”.
“We scrutinize the issue in a regulatory perspective, we are ready to do something if it was needed, but so far it’s not exactly very high on our to-do list.”
Wide range of opinions
It is clear that, even at a forum where these 20 nations can sit down and discuss a phenomenon like cryptocurrencies, there was never going to be a clear regulatory pathway cut out in a matter of days.
The first foot in the door has already been crushed by the FSB’s refusal to explore new regulations, but, even if it had opened the dialog, there would likely be a lot of disagreeing and slow progress. In any case, we will be awaiting any developments as and when they arise.Read More
The Saber Case: How Complementary Currencies Can Go Crypto And Change The WorldApril 21, 2018 8:23 am
In the past few years we’ve been witnessing the new massive waves of cryptocurrency adoption — you can now pay in Bitcoin for almost anything from coffee to real estate. But the ideas were always above money in community and there is still so much untapped potential from decentralized digital coins. A history of Saber — a Brazilian complementary currency project, developed in early 2000s to promote the educational system, is an important example of the social potential we tend to forget keeping up with the rates of exchange.
Brief history of complementary currencies
Complementary currencies (CCs), also known as community currencies, are basically an alternative (or, indeed, a compliment) to conventional money. Their purpose is usually to strengthen the local economy at times of recession by stimulating additional transactions and therefore keeping the economic cycle in motion or to achieve certain social, environmental, or political goals.
In most cases CCs are not legal tender – i.e. they are not accepted at a national level; you can’t buy whatever you want using it – they only function as a quasi-monetary exchange medium for certain purposes within a restricted area. In theory, CCs should stimulate the local economy and encourage people to act collectively intelligent. Although replacing conventional money and undermining national currency is not usually the goal of a complementary currency, the state often appears to be reluctant to the idea, and the model has developed the reputation of an experiment, not a proven method.
The first complementary currencies could be traced back to ancient Egypt, where local people used otrakas — pieces of pottery — to issue receipts for the amount of harvest farmers would put into storage. Those pieces, in turn, could have been traded for local services. Similarly, in medieval Europe people would regularly turn in bracteates — pieces of jewelry — for new coins, although always with a deduction. The system was designed to prevent people from hoarding coins and keeping them out of the financial ecosystem. That, in turn, would increase the velocity of regular money.
In recent history, CCs started to appear in the first half of the 20th century. One of the most notable example is the Wära free economy experiment held in Germany. The Wära was a currency introduced by Hans Timm and Helmut Rödiger, followers of a German merchant, theoretical economist and anarchist Silvio Gesell. During the course of the experiment, Wära banknotes were printed, available in denominations of 1/2, 1, 2, 5, and 10 Wära (one Wära would be equal to one Reichsmark) to support the economy of a mining town Schwanenkirchen, which had been hit with massive unemployment. Like otrakas in Ancient Egypt and bracteates in medieval Europe, Wära was a demurrage-charged currency, which means that each banknote had a monthly cost fee of one percent of its nominal value. This prevented people of Schwanenkirchen from storing the currency and putting it out of active circulation. It had its benefits for users too: for example, people who bought coal (the local economy’s staple) using Wära received a discount.
During the course of the experiment, Wära allowed local services to continue despite the fact that the national currency was scarce. As a result, new jobs were created and taxes were paid. However, the scheme ended abruptly: the finance ministry of the Reich forbade the currency, and the town returned to its previous decadent state.
Similar experiments were held in other countries around that time: local currencies were used in Wörgl, Australia (1932 – 1934), Alberta, Canada (1936) and in the US during times of Great Depression.
The Saber experiment
In 2003 a Belgian economist Bernard Lietaer collaborated with Brazilian professor Gillian Schwartz of São Paulo University – who has previously worked as an economist at various public and private financial institutions including BankBoston – to submit a proposal for a complementary currency called The Saber to the government of Brazil.
Saber was aimed to help Brazilian schools provide greater educational opportunities “without creating any new financial pressure on the economy”. The educational vouchers were designed to launch a substantial “learning multiplier” so that a given amount of money can produce more learning for a bigger number of students. In other words, The Ministry of Education would allocate Sabers among schools in economic areas where normally there is no funding for higher education. Local students at the age of 7 were to receive a certain amount of Sabers on the condition that they must choose a mentor among older students (they can later earn more Sabers by giving those lessons at the rate of 5 Sabers per hour). At the end, when they turn 17 and graduate from school, they could spend the gathered Sabers to pay (fully or partly depending on the available amount) university tuition fees.
The mere idea of an alternative to the local currency sounded rather controversial. As Schwartz remembers over a Skype call with Cointelegraph:
“Pioneers are doomed to see the other side of Jordan river, but never make it there. Maybe I was researching too early, but anyway it’s not about anyone’s idea, it’s more about the zeitgeist”.
The Brazilian government declined the project at the review stage. However, 18 years since Schwartz’s team first started doing the research on CCs, things have changed considerably. Now, the rise of Bitcoin allows more room for experiments in the financial area. Schwartz notices:
“I think it’s a learning process for everyone. Now the private banks, as well as some departments at a federal level are discussing blockchain technology here. Sao Paulo’s stock exchange has also been one of the pioneering institutions .
Now it’s becoming much easier to explain to my partners, local leaders or young people what a creative currency could be, because there’s Bitcoin and all that discussion whears 10-15 years ago that would be seen as completely out of question — how can you even dare to substitute the real currency?”.
What’s next? A global creative cryptocurrency to promote education, culture and arts worldwide
These days Schwartz is busy creating a CC that goes beyond the regional — the project was launched in Brazil last November, although at its most initial stage. “We lack a monetization platform for creative processes which already exist should be more democratic rather than autocratic and technocratic”, — he says, while stressing the popularity of state-reinforcing technologies like mass surveillance in modern society as well as fluid stability of global currencies over the past few decades.
The platform called DarVoz got inspiration from UNESCO’s MIL CLICKS’ (a project Schwartz joined in 2006) agenda, which is based on the idea that responsible consumption and production of online content worldwide could be rewarded with digital currency. As professor explains:
“We’re working on the idea that we can share digital toolkits that may include the creative currency. It’s a concrete example of this idea of a great creative community that is leveraged by universities, artists, citizens into a whole new sphere for information exchange and local development. Whilst it doesn’t involve governments, it’s not against governments”.
Why not issue a new coin straight away, while it seems so easy to do in the world where even memes almost accidentally become successful currencies? Well, according to Schwartz, it contradicts the whole idea. “It makes no sense to go for an initial coin offering (ICO) if you don’t have the other ICO, which is Initial Community Organization. You need organic connection between community and the currency first. The idea is not that we want hundreds of new ICOs, we’re aiming at a currency system with diversity being an important part of its dynamics. It’s really complementary, it’s not antagonistic to the existing currencies and infrastructures. We’re not going backwards in terms of globalization — that’s for trade barriers advocats. Instead, we’re going forward, towards more interconnectivity but with a balance between the technological and the humanitarian”.
Acknowledging that conservative governments of the world wouldn’t be particularly happy about the idea that a regular, state-approved currency can be in any form substituted by decentralized ones, Schwartz seeks support among more open-minded institutes: universities, research groups and outreach projects.
“So far we haven’t leveraged enough support… there’s a funding issue here” admits Schwartz: “In order to develop something like a running currency, confidence is required. To get that confidence, you have to be trustable as an institutional body or as an organization. We still haven’t been able to convince any policymaker”. However, DarVoz has found an alternative solution: these days Schwartz and his team are discussing their concept with other universities all over the world: “That way, we should be able to have a global social currency that connects different cultural and educational projects”.
Crypto technologies and transparency
To run such currency, DarVoz needs a platform. Schwartz’s team is currently negotiating with Holochain, an open source framework for peer-to-peer applications. “We’re going to hold a meet up with their team to brainstorm at the end of March. political situation in Brazil is very unstable at this point. In 21 years that I’ve been working with those projects at University of São Paulo this is the worst time to start” the professor laughs. Some caution wouldn’t hurt, Schwartz believes:
“It’s important to hold an open dialogue with the central bank as to what kind of currency that is and what kind of sphere it’s connected to… all kinds of walls are being built these days. It’s kind of like going back to the middle ages in that sense”.
The currency’s purpose is part of its value, as opposed to regular currency, which, according to Schwartz, “is useful for whatever — you can buy a gun, you can buy a glass of water”. His team is looking to achieve NGO levels of transparency — the activities circulating within the currency must be traceable and accountable for in order to be monetized. Such digital records are supposed to be stored within the Blockchain-type backbone of the currency:
“It naturally evolves into the public sphere of shared audiovisual content … Say, you held a lesson with 15 kids in Bolivia and took care of the garden around the church. You connect to the global network and share the record of your activities… Basically, it’s about how you translate knowledge into acknowledgment on a democratic ”.
Despite the complexity of his concept and low interest among policy-makers and investors, Schwartz remains optimistic. “This is a learning process. The issue here is not about the currencies, it’s about all countries reaching a new level of understanding that can be at least comparable to the post-war welfare consensus. We’re now probably living through the last stages of the crisis. A new consensus is very likely, because we have much more tools to discuss, share and use. However, on the other hand, those very tools are very useful for control, censorship and oppression as well. You can use a knife to kill or to slice the bread and share”.