Smart people invest in cryptocurrencies during this time period

1 Institutional investor’s ambition
Garry Tan, co-founder and well-known investor at Initialized Capital, believes that institutional investors are pouring a lot of money into the world of cryptocurrencies, and now may be the best time to get institutional funding.

Garry has invested in cryptocurrency startups such as Coinbase. He pointed out that this year’s cryptocurrency bear market actually reduced the investment risk of new visitors, especially for institutional investors. The amount of funds injected by these institutions in the cryptocurrency economy is basically the same as the amount of funds they invested in core venture capital investments, indicating a higher return expectation.

2 Encryption funds are not performing well
Due to the poor performance of cryptocurrency funds, many high-cost entry investors continue to lose money. In the past few years, many investors have deployed a large number of cryptocurrency hedge funds. Last year, the cryptocurrency market was optimistic and the market was expected to be extremely high. As a result, many hedge fund managers overestimated the growth of cryptocurrency portfolios, using investors’ multi-million dollar assets for cryptocurrency speculation.

In August of this year, Autonomous Next, a cryptocurrency research and financial technology analysis company, released a report showing that in the first half of 2018, the valuation of most cryptocurrency hedge funds fell by more than 50%. The study also believes that a significant portion of hedge funds deliberately shorted Ethereum, which is the main catalyst for poor overall market performance.

According to the report, “To use a project on the Ethereum platform, users have to use third-party tokens with the main goal of fundraising to make purchases and payments. This makes the ETH coin less common and weakens its role. The function of the accounting unit or exchange medium. Moreover, the ICO project party must cash out the raised ETH to maintain the team’s operations, which imposes a constant selling pressure on Ethereum.”

The report also mentions that the lack of regulation and the rejection of Bitcoin ETFs are also important factors for investors to continue to sell cryptocurrency assets during this period.

3 Bear market is bottoming out
Bitcoin experienced a bull market in 2017–2018. At the end of 2017, the total market value of cryptocurrency was as high as $795 billion, which has now shrunk to $218 billion. In less than a year, the market value has evaporated by 72%.

However, many industry experts believe that cryptocurrency is bottoming out. As the leader in the cryptocurrency market, BTC price has gained strong support around $6,000.

In early September, billionaire Mike Novogratz said, “$6,000 is the bottom price of Bitcoin.” ErikVoorhees, founder and CEO of the digital currency trading platform ShapeShift, pointed out that although the bear market is not over yet, investors are coming at this time. It’s completely feasible, because Bitcoin is hard to fall below $6,000.

In fact, many institutional investors have already opened positions at this bottom, because this is obviously much safer than entering at a higher price. This also means that most of the funds will not be out of the $6,000 price range, and other mainstream cryptocurrencies will also form their respective bottom prices. For example, Ethereum, the second-largest market capitalization, has gained strong support around $200. Similarly, XRP, BCH, EOS, XMR and Litecoin all rebounded from their respective annual lows.

Currently, technical indicators show that the overall trend is still empty, and Bitcoin has set the lowest weekly trading volume in the past seven days. However, given the positive developments in the cryptocurrency industry and the stability of bitcoin prices over the past two months, the cryptocurrency market is likely to be bottoming out.

4 Standardization of the encryption market
As most speculators exit the cryptocurrency market, the remaining market participants are increasingly aware of the function of cryptocurrency. As investors become more aware of potential scams, new 1CO projects that lack reliable proof of concept are on the verge of death. As blockchain investment increases, regulators also show greater interest in developing cryptocurrency regulations.

In addition, the famous investment manager David Swensen also believes that the current cryptocurrency market is less risky and has recently invested in two cryptocurrency funds.

For long-term investment-oriented institutional funds, the cryptocurrency winter is giving them the opportunity to invest in the cryptocurrency market at a relatively safe cost. The bear market is not terrible because it also means low cost. The most terrible thing is to grab the bull market tail and enter the market, and then the assets plunged 80%. This kind of deep pit is the most difficult to fill.

Why does binance let 4 currencies go offline at the same time?

Binance announced yesterday that it decided to remove the four currencies of Bytecoin (BCN), ChatCoin (CHAT), Iconomi (ICN) and Triggers (TRIG).

The specific arrangement is that the transaction will be stopped at 18:00 on October 12 and all transaction pairs related to 4 currencies will be released. The user can withdraw the cash before 18:00 on November 12, and then the cash withdrawal function will be closed.

As the world’s largest exchange, Binance exchange has always received a lot of attention on the shelves and the coins. Nowadays, in the bear market, the big move has been smashed into four currencies, which makes people think that these projects may have zero risk or There is a problem with the team’s operation.

Binance did not give any explanation for the specific reasons for the delisting of the four projects, but in the announcement released yesterday, binance coin news listed the factors that led them to delist the digital assets from their platforms.

Prior to this, binance announced that it would donate all of its listing expenses to charities. Coupled with the currency, these actions seem to be a company that is doing its utmost to protect users. Smart companies focus on long-term interests and don’t mind sacrificing short-term benefits.

Once the announcement was issued, all four projects suffered a price drop. Here is a summary of the reasons why Xiaobian is here to sort out the currency of the binance.

1, Bytecoin (BCN)

Potential cause: Evidence of unethical/fraudulent behavior.

Knowing this project, Bytecoin can be traced back to 2013, and the project was accused of 82% of the presets during development. And many times, the developers and founders are anonymous, which makes users feel uncomfortable.

2, ChatCoin (CHAT)

Potential causes: public communication and activity levels

At the end of June, Xiaobian found that the CHAT official website had a grammatical error, and it didn’t look like someone was doing update management. Until the end of August, the site finally got a little bit of movement and started to update.

This morning, CHAT officially announced that they claimed that they had not received any reason from the Binance team.

3, Triggers (TRIG)

Potential Cause: Network/Smart Contract Stability

TRIG is an interesting project. It is based on the gun industry. It plans to release the main network. At present, it is impossible to confirm the reason for delisting, but some problems have been found in the official launch of the project.

As early as January 2018, Bittrex deferred TRIG for some reason.

In fact, when the project team was asked about the issue of delisting, they believed that they would not be removed from Binance. However, because the project is not compatible with ERC20, and binance follows Bittrex, it may lead to delisting due to this technical reason.

Investors interested in this project can pay attention to whether the project will be re-listed after the main network is replaced by TrigX in the fourth quarter.

4, Iconomi (ICN)

Potential cause: Become a security token

ICN coin delisting is at ICN to announce that they will convert to eICN equity tokens. This equity token is also a security token, and most exchanges currently do not provide legal transactions.

Since many ICO projects have been declared securities by the US Securities and Exchange Commission (SEC), more exchanges will delist such projects in the future.

How will the more stable cryptocurrency price change the market?

It’s been 2 months since the last plunge of cryptocurrency price, also the BTC price still stable in $6000-$7000 for about a month, and what will that make a change to the market if this keeps going on?


1. The approval probability of BTC ETF may skyrocket
The bad news is that the BTC ETF still not breakthrough the SEC line in this plunge period. However, in August and September, there are plenty of “BTC ETF must be approved!”, “10 reasons you should know about why SEC need to approve the BTC ETF!” and other these familiar articles show on every media web page.

The fact is that SEC will never approve the BTC ETF until BTC has changed, and they have a simple reason for explaining — “BTC price is not stable.” Easy words but powerful.

And the only reason they did this is that profit. For example, some exchanges publicized the good news to stimulate people to consume, and exchanges can get more profit (Binance exchange can profit $300 million in half year.)

Here is a question, what if the bitcoin can keep its price in this interval for 6 months, or even less price interval, then does the SEC approve the ETF? The answer is yes. But it just can rise the approval probability of 10%, and they will keep rejecting the ETF until they believe the Bitcoin is stable enough to not make the price skyrocket or plunge.

So now the only way to make the market lively again is that make Bitcoin currency more stable, which to be a currency can be trading in the real market, but not just a hype tool.


2. Bitcoin and stable cryptocurrencies
Since it comes to stable currency, then I have to mention the most recent star coin — GUSD. As a stable cryptocurrency approved by the US government, Tether coin received a huge impact once again. But that is not much terrible, because GUSD also has great flaws.

And the flaw is that government centralization. GUSD is endorsed by the US government, which is equivalent to the USD. This characteristic has a great conflict with the USDT. Although both are centralized stable coins, the difference can be enormous.

First, the centralization of the USDT is endorsed by the trust of private companies, while the GUSD is the US government. That’s right, although both are centralized, and it seems that GUSD is more reliable, they all contradict Nakamoto’s vision of cryptocurrency, and it seems that GUSD violates a bit more. After all, Nakamoto is Anti-government.

Secondly, USDT has taken advantage of time. Because it is the first stable currency, it has been widely spread. Most exchanges have been traded with USDT, and its holdings also account for a large proportion. It is very difficult to make new changes unless major changes are encountered.

Finally, let’s go back to the topic. If Bitcoin becomes a stable currency like USDT, then the first stable decentralized coin will soon be born. However, there seems to be some conflict between decentralization and stability. Coupled with the high price of Bitcoin, it is very difficult to become a stable currency that people can use, and its own gold attribute proves that Bitcoin is not suitable for being a stable currency.

So, the stable bitcoin price in now stage is just nothing. If people trust it, then it rises, and what if they don’t? The possibility of decentralized utopia built by Satoshi Nakamoto is too low.
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3. SUM
Recently, plenty of countries have also begun to take action. From Venezuela’s use of Petro coins to control inflation, to the Chinese government’s own R&D centralized blockchain (which should be called a distributed network) to control public opinion, and then to the US to issue GUSD against USDT. everything is explained that people are full of confidence in cryptocurrencies and blockchains just like the Internet of the year.

But is the cryptocurrency and blockchain be the product of the next stage? It remains to be discussed. In my opinion, IoT will be the product of the next stage. The world always wants to develop faster, regardless of the actual but develop faster, human greed is more and more difficult to meet, nobody knows that the next one who is standing on the money. Everyone just wants to be that one.

From the perspective of the anti-governmentist of Satoshi Nakamoto, if cryptocurrency is to play its true role. At least it can be achieved by waiting for the unification of the world, such as the “classification of currencies by industry”. The country will become the biggest competitor of cryptocurrency. This is why Nakamoto is reluctant to issue cryptocurrencies too early.
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What do you think?

Binance donates 100% of the currency fee. What should I do on other exchanges?

Yesterday, the Binance exchange was bleak and released an explosive news, announcing that the exchange fee will be fully transparent, and all future currency fees will be 100% donated to its own charity blockchain charity Foundation Blockchain Charity Foundation (BCF). Such a move won a lot of praise and applause for Binance, and of course there were a few voices of doubt and asked Binance to disclose past listing fees. Players believe that, in general, this is a good thing for Binance, for the entire cryptocurrency industry and even for philanthropy. Below I will share my thoughts and opinions with my friends.

Binance currency has always been a mystery
In August of this year, Expanse founder Christopher Frank broke the news on Twitter that he received a letter from the Binance exchange, saying that the Binance fee was as high as 400 BTC (about $2.5 million). Bin Chang founder Zhao Changpeng quickly responded in Twitter, saying that he received a fraudulent email. Zhao Changpeng also said that even if the garbage coins pay 4000 BTC, Binance will not be on. In ETH/NEO/XRP/EOS/XMR/LTC and other currencies, the currency is zero.

For Frank’s breaking news, there was media confirmation from Binance that Binance stated that “the project team decides whether they are willing to pay and how much they are willing to pay when they apply for listing. There is no standard listing fee. Every project is different.”

The matter stopped for a while. In September, a form of the exchange’s currency fee re-ignited the matter. According to the form, Binance’s currency fee was 20 BTC, plus 100 BTC deposit. The authenticity of this form does not seem to be recognized by major exchanges such as Binance.

In short, this mystery about Binance may have ended in this change in Binance.

All the money is donated to charity. Is Binance really a charity?
Binance is the biggest fan of all exchanges, not one. On July 7 this year, Binance donated $1 million worth of BTC coin, BNB coin and other cryptocurrencies to Japan to help rescue Japanese rainstorms and earthquakes. In July, Binance announced the establishment of the Blockchain Charity Foundation (BCF), the first charitable foundation in the blockchain industry. The foundation has been cooperating with the Malta Presidential Trust Fund since its inception and has signed a memorandum of understanding with UN Ambassador Helen. In September, the company signed a cooperation agreement with the United Nations Development Program (UNDP) at the blockchain to promote inclusive and sustainable development. The foundation will donate millions of dollars to UNDP, and the two sides will work together to promote the application block. Chain technology promotes the development of social welfare.

Regardless of the cryptocurrency exchanges, the blockchain charitable foundation established by Binance is welcomed and supported by both the UN and governments. Binance, as the world’s most traded exchange, is really using its practical actions to interpret its determination to become a leader in the “blockchain charity” industry. This time, “contributing” the controversial currency fees is a new initiative of Binance in the field of philanthropy. In the future, it may also drive companies from other exchanges and even blockchain industries to follow suit, which is good for charity.

Behind charity, there must be hidden commercial purposes.
As a company, in any case, profit is the first. Binance has tried hard to promote charity, and there is certainly no way to be pure, and it is still hidden from commercial purposes. To be honest, the image of the exchange is not very positive. Even Binance, all kinds of negative news are not uncommon. By engaging in charity, Binance is both self-fulfilling, creating a trustworthy brand for itself, and even building a good social image for the blockchain industry.

Through charity, it is not only to establish an image, but also to gain a lot of free positive publicity, and to establish a benign interaction with governments and organizations of all countries to lay a good foundation for the future.

In the first half of this year, Zhao Changpeng said in an interview that according to Binance 2018 historical data, Binance’s revenue in the first half of this year was about 300 million US dollars, and it took millions of dollars to do charity, which means that it will not hurt. The bones are moving. The capital fee paid this time is also a small part of Binance’s income, and the future may be replaced by the positive effect brought by it, and it is likely to bring a better return from the source.

In fact, since Fcoin moved out of the free currency, the controversial price of the coin will only become less and less in the future. Instead of holding it with reassurance, it is better to use it as a charity. In one fell swoop, Binance’s move is very good. this really makes other exchanges far behind.

Will the EOS surpass the Ethereum?

I have not paid attention to the current situation of EOS for some time. Then I suddenly found out that EOS is slowly over ETH. Maybe after the end of the bear market, EOS really has a chance to surpass ETH.

1. The stopping Ethereum
Since the birth of Ethereum in 2015, it has been the boss of the public chain for a long time. Many blockchains are similar in structure to Ethereum. Even the ideas and structures of some alliance chains can’t escape the similarities with Ethereum. Especially in the first half of this year, the profit of Ethereum is even more dazzling.

However, the development speed of Ethereum is too slow, and its technology development speed is far from the current high valuation, and it cannot keep up with the development speed of the entire cryptocurrency.

WHY?

How long has Ethereum been not proposing new features and transformations, and its sharding has been in place since 2017 and has been completed for more than a year. At the same time, the promotion of PoS is also very slow. One of the most important reasons is that there is no potential competitor to make it vigilant, and the high valuation makes early developers gain huge benefits without further motivation.

Why do I think EOS has an opportunity to replace ETH. Because what ETH coin can do, EOS can also do, and EOS can do better.

Take DAPP, although EOS needs to use C++ such a troublesome language for smart contract development, development efficiency, ecology and so on are much higher than Solidity, which is an anti-human language. It can be said that using Solidity to write a good DAPP on Ethereum takes at least twice as much time and effort as EOS.

EOS has voted from the main net in June to the present, and in just three months, it has already surpassed ETH in DAPP users and transaction volume. Will everyone be surprised and amazed?

The ecology of EOS is better than ETH, and it is only a matter of time before EOS surpass ETH. But to be honest, this speed is far beyond our imagination. I thought it would take at least half a year, and I didn’t image it already complete the goal in three months.

2. the ETH price keep falling
In this wave of the plunge, BTC price just fell to 1/3 of the highest point, is a very normal range, and ETH fell to the original 1 / 7, compared to BTC has fallen by half. And EOS, compared to the bull market fell to a quarter or so, and the BTC decline is not much different.

Roughly calculated, the total amount of EOS tokens is about ten times that of ETH, that is, calculated according to the current EOS price of 0.025 ETH. The market value of EOS has reached 1/4 of ETH, and in the first half of this year, the market value of EOS is only 1/10 of ETH. So, EOS is slowly surpassing ETH.

3. Will it be a new trend through EOS crowdfunding?
Why is the ETH price falling so much? One of the most important reasons is that many project parties are selling in large quantities. Don’t look at it now that ETH looks like it will rise back to around $300 and will definitely fall again.

It can be said that there is a large amount of ETH in the hands of the project. If these ETHs are sold together, it is quite possible that the price of ETH falls below $100. Of course, the current price is already very low. The project parties that wanted to sell it have already sold almost, but if the whole market is in a bear market for a long time, it does not rule out panic selling.

But this is not the most critical. The most important thing is that in the beginning, everyone used ETH as the token for crowdfunding. In addition to convenience, there is another important reason for hoping to join the ETH ecosystem and the ERC20 system. But if EOS’s ecology is better than ETH, will the project use EOS coin for crowdfunding?

In fact, this is not an alarmist. There are already many projects considering EOS for crowdfunding. On the one hand, EOS is more stable than ETH. On the other hand, the huge potential of EOS itself is worth investing.