TokenInsight — Weekly Report 7/21–7/27
TrendReview
TI Index
During the period from July 21 to July 27, the average TI index reflecting the overall performance of the blockchain industry was 828.88 points and increased by 59.10 points(+7.68%), with a maximum of 881.05 points( at July 25th 8am) and a minimum of 771.59 points( at July 21st 8m). Compared to last week, the TI index rose by 5.58%.
TIG Index
During the period from July 21 to July 27, the average TIG index reflecting the overall performance of the blockchain industry was 781.54 points and increased by 6.92 points(+0.89%), with a maximum of 816.88 points ( at July 25th 1pm) and a minimum of 737.56 points ( at July 21st 8am). Compared to last week, the TIG index increased by 1.98%.
DailyContinuously Compounded Rate of Return
On July 21 and 26, the daily continuously compounded rate of return of TI index was higher than that of BTC and lower than ETH, but it was lower than BTC and higher than ETH on July 22, 25 and 27.
This week the market has remained sluggish with more than half of the 1396 tokens on listing decreasing in price. The average weekly yield is -0.23% and the median is -2.68%. The top three gainers are IFLT (+626.70%), LOG (+410.20%), BET (+283.63%) while the top three losers are HYPER (-99.30%), TCC (-89.18%) and RIC(-84.23%).
This week, BTC has increased continuously. The average price of BTC was $7,819.41, increased by $981.05 (+14.35%) compared to last week’s figure. BTC fell to its lowest point to $7,222.53 on July 21st around 8:00am and peaked at $8,474.24 on July 25th at 8:00am. The close price of BTC increased this week by 9.11%, compared to that of last week.
This week the average price of ETH was $465.48. This week, ETH fell to its lowest point to $440.52 on July 21st around 6:00am and peaked at $484.42 on July 25th at 8:00pm. In total, the close price of ETH increased this week by 1.93% compared to that of last week.
This week the average price of EOS was $8.24. This week, EOS fell to its lowest point to $7.60 on July 21st around 8:00am and peaked at $8.95 on July 25th at 10:00pm. In total, the close price of EOS increased this week by 2.70% compared to that of last week.
This week the average price of ETC was $16.45. This week, ETC fell to its lowest point to $15.75 on July 24th around 12:00pm and peaked at $17.44 on July 26th at 16:00pm. In total, the close price of ETC increased this week by 1.68% compared to that of last week.
This week the average price of MIOTA was $0.99. This week, MIOTA fell to its lowest point to $0.91 on July 24th around 8:00am and peaked at $1.06 on July 27th at 3:00am. In total, the close price of MIOTA increased this week by 1.57% compared to that of last week.
This week the average price of BCH was $812.70. This week, BCH fell to its lowest point to $742.73 on July 21st around 8:00am and peaked at $876.22 on July 25th at 10:00am. In total, the close price of BCH increased this week by 3.63% compared to that of last week.
After last week’s BTC surge, the BTC gains this week continues to pull up the main cryptocurrencies. BTC recorded the largest increase of 9.11%, which was greatly affected by the ETF’s expectations. The rejection of the Winklevoss brothers’ listing application triggered a short-term decline on July 27, but the market was generally optimistic about the ETF approval. EOS rose by 2.70%. At the same time, the RAM expansion proposal was voting. ETH rose by1.93%, slower than the growth rate of BTC, and the high popularity of FoMo 3D caused congestion in the ETH network.
IndustrySectors
According to TokenInsight’s industry classification for tokens, currently 12 token industry sectors have enjoyed positive returns this week, accounting for 57.14% of the overall 21 token industry sectors. The top 3 gainers this week were Communication (+115.24%), Others (41.99%), and Data Storage (+34.54%) while the top 3 losers were Sharing Economy (-19.52%), Public Service (-18.16%), and Interoperability Between Blockchains (-17.48%). This week the industry ranking has varied dramatically. NameCoin increased by 133.44%, driving the Sharing Economy sector to rise from 2nd loser last week to top winner this week. However, Sharing Economy and Interoperability Between Blockchains, which were top winners last week, has become top losers this week.
Among major cryptocurrency industries, payment currencies BTC and XRP enjoyed an above-average performance(+21.49%, the fifth gainer); ETH and EOS (general platform) and ETC (IOT sector) increased slightly (+1.89% and +1.36%, the 11st and 12th gainer respectively).
WeekIndicators
Turnover Ratio
During July 21st to July 27th, the market turnover ratio decreased by 8.02%. By July 27th, it was approximately 4.72%. ETC and EOS enjoyed a lower turnover ratio than that of the market, being respectively 1.84 times and 1.98 times lower. The turnover ratio of ETH, MIOTA and BTC are lower than the market, indicating a relatively low activity, among which the turnover rate of MIOTA is the lowest and just a quarter of the market.
TIPV Ratio
The market TIPV ratio increased by 8.71% this week to 21.17 by 27th. The TIPV ratio of EOS and ETC are just half of the market while BTC, ETH and MIOTA enjoyed a higher ratio, among which the TIPV ratio of MIOTA is 3.63 times of the market, indicating a limited potential yield.
Sharpe Ratio
From July 21st to July 27th, the Sharpe Ratio of all 5 tokens(BTC,ETH,EOS,ETC,MIOTA) featured showed negative results, which rose with varying degrees and BTC enjoyed the most steady increase, decreasing to 55.42% from 77.53%; while the sharpe ratio of ETC rose from 5.88% to 10.46%, increasing by 77.92%.
The Number of GithubCommits
Compared to last week, the ranking of ZSC dropped from the first place to the 3rd and the number of Github Commits decreased by 55.50%. TRUE ranked at the 4th last week has fallen to the 5th whose the number of Github Commits decreased by 35.66%. The number of SHOW,GXS and ADA Github Commits remain the same place, 2nd, 8th and 9th, decreasing by 48.91%, 35.94% and 11.11% respectively. Compared to last week, the mount of ZRX Github Commits gained a 3.87% increase and rose to the 1st place; NLG climbed from the 10th to 6th, whose Github Commits increased by 46.67%.
Current Events
Emergencies
Fomo 3D’s Extreme Popularity May Be the Main Cause of ETH Congestion, High Risk Copycat Contracts are Exploding.
On July 24th, the popularity of FoMo 3D and other similar games remainedvery popular, which may be an important reason for the recent congestion on the Ethereum network. At present, the number of unconfirmed transactions on the Ethereum network is 66,361. At the same time, FoMo Now, FoMo Lightning, and other copycat contracts have exploded, with 40 seats taking over the Top 100 most riskycontracts.
Under this circumstance, it makes sense that copycat products appear, and risk control is still the main focus of investors. FoMo 3D itself remains in constant controversy. Although its chief designer refuted the rumor of a Ponzi scheme and said that they will not run away, itisworthy to note whether the economic significance of this project is justifiable, considering that the most eye-catching Dapps on the Ethereum network are gambling and exchange types. The way to blockchain Dapp’s stage of fully bloomingis arduous and long.
Fomo 3D’s Extreme Popularity May Be the Main Cause of ETH Congestion, High Risk Copycat Contracts are Exploding.
On July 24th, the popularity of FoMo 3D and other similar games remainedvery popular, which may be an important reason for the recent congestion on the Ethereum network. At present, the number of unconfirmed transactions on the Ethereum network is 66,361. At the same time, FoMo Now, FoMo Lightning, and other copycat contracts have exploded, with 40 seats taking over the Top 100 most riskycontracts.
Under this circumstance, it makes sense that copycat products appear, and risk control is still the main focus of investors. FoMo 3D itself remains in constant controversy. Although its chief designer refuted the rumor of a Ponzi scheme and said that they will not run away, itisworthy to note whether the economic significance of this project is justifiable, considering that the most eye-catching Dapps on the Ethereum network are gambling and exchange types. The way to blockchain Dapp’s stage of fully bloomingis arduous and long.
Bitmain IPO Details Exposure: Last Year’s Net Profit Exceeded $1.1 billion, and the Valution is Expected to Exceed $30 billion.
According to the All-Weather TMT report, bitcoin mining machine manufacturer Bitmain plans to submit an initial listing application form to the Hong Kong Stock Exchange on August 30 and plans to complete the listing by the end of 2018. In the investors list, Tencent, EDBI, Abu Dhabi Investment Authority, and Canada Pension Fund are on the books. After the listing, Bitmain is expected to be valued above$30 billion.
Compared to the 100 billion dollar valuation of Hong Kong company Jianan, Bitmain is worthy of a conservative valuation. Prior to this, Bitmain completed two rounds of financing, namely, a $50 million Series A financing by Sequoia Capital and IDG Capital in September 2017 and a $300 million Series B round of financing by Sequoia China in June this year. At present, there are two difficulties in the listing review of Bitmain: one is that the external shareholders account for a relatively low proportion; the other is that the mining machine manufacturer has a monotonous revenue structure and the profit is greatly affected by the price of tokens.
RAM Expansion Proposal is in Progress, Cost Reduction may Boost EOS Application Acceleration Development.
According to IMEOS, eosauthority initiated a RAM expansion proposal by vote. The main content of the proposal is to change the RAM generation mode from the original fixed 64GB to 1KB per new block. At present, 6 super nodes have voted in favor of the proposal, and 9 more votes are required for the proposal.
In addition to this solution, optimizing the RAM usage of new accounts (from 3KB to 1.5KB) and the IOS wallet client that creates accounts for free can alleviate the scarcity of RAM supply. If the proposal is successfully passed, RAM supply will be greatly expanded, and the problem of high prices will be solved. Through this cost reduction, it is figured that the speed of EOS applications will become greatly more efficient.
The Institute of Information and Communication Issued the “Financial Blockchain Research Report” and Entered the Establishment of the Blockchain Security Research Center.
On July 23, the Institute of Information and Communication issued the “Financial Blockchain Research Report”, stating that blockchain will have a potential positive impacts on the financial system, such as currency issuance and circulation, financial instruments, financial markets, financial intermediation, and institutional and regulatory mechanisms; Tongtian Xintong Institute’s Tera Terminal Lab signed a strategic cooperation agreement with MXC Matcha Exchange, Palm Royal Technology, and Shanghai Jiaotong University Cyberspace Security College to jointly establish the Blockchain Security Research Center BSRC.
ICT believes that blockchain, at its current stage, can be used for the issuance management and circulation of asset equity certificates. However, it is difficult to participate in the offline equity assessment. BSRC will focus on basic research in the field of blockchain securities, including but not limited to blockchain security technology development, security industry standards development, blockchain application scenario security research, and blockchain financial application compliance research, etc.
International Policies
US Chamber of Commerce Calls for Regulations on ICOs and CompTIA Releases Blockchain Guidebook
US Chamber of Commerce urges SEC and CFTC to regulate ICOs. They urge the SEC to continue studying ICOs to see how they can be an effective tool for raising capital while protecting investors and ensuring applicable laws are met. They also urge the CFTC to study how cryptocurrency is functioning in the futures and commodities market. Meanwhile, a handbook for the blockchain technology has been issued by the Computing Technology Industry Association (CompTIA) for public sector adoption of the promising new technology.
As the most influential business lobbying group in the world, the US Chamber of Commerce highlighted that the agencies should regulate the products and services enabled by the technology instead of the technology itself. The guidebook will be used as a resource for public sector officials to understand, explore and implement blockchain projects for a broad range of public sector projects. The guide also includes key policy recommendations for helping to foster more innovation and the development of blockchain technology.
JVCEA Working on set a 4-to-1 leverage limit on margin trading
The Japan Virtual Currency Exchange Association (JVCEA) recently proposed a ruleset which would see a 4-to-1 leverage cap placed on margin-supported exchanges, aiming to reduce the risk of massive losses given the volatility of these assets. Meanwhile, this can also prevent exchanges from manipulating the market to liquidate under-margin positions.
In addition, 16 exchanges have received business improvement orders from the Japanese Financial Services Agency (FSA). It is likely that the FSA’s hard-line approach to regulating cryptocurrencies will only continue moving into the future.
India’s Supreme Court PostponesFinal Ruling on RBI Cryptocurrency Ban while Their Attitudes towards Regulations Varies
On July 21, the Supreme Court in India postpones RBI “crypto ban” petition from to September 11. On the following day, the Reserve Bank of India (RBI) told the Supreme Court that it is necessary to regulate the Bitcoin and other cryptocurrencies to check illegal transactions which will impact the international flow of funds.
Senior counsel Gopal Subramanium said, “In today’s tech world, transactions are done online and you need banks for that” and that should concern the government. Subramanium described as “baseless” the RBI circular that mandated its regulated entities including banks to withdraw support for cryptocurrency exchanges and other businesses dealing with virtual currencies.
Giant Layout
YLZinfo and Ant Financial Cooperating on Tracing back to the Vaccine Source by Blockchain while Final Implement Remaining Uncertain
YLZinfo and Ant Financial announced that cooperation on blockchain for vaccine traceability and the prescriptions outflow? In terms of traceability, YLZinfo and Ant Financial jointly researched and discussed. At present, it is still in the technical planning and designing stages. Therefore, it’s still uncertain whether or not the project will be implement or its market promotion can be carried out smoothly.
Recently, the Changchun Changsheng Bio-tech Company and Wuhan Bio-tech company have become the target of public fury for falsifying production data and making substandard DPT (diphtheria-pertussis-tetanus) vaccines that were given to children. They have been severely punished while the “source of production” is still the crux of the regulation. If blockchain technology can be applied in vaccine traceability as soon as possible, it will alert vaccine manufacturers, improve vaccine safety, and benefit the public.
Xiongan and Consensys Signed a Memorandum of Understanding(MoU) in Beijing and the Application of Blockchain Gained Innate Advantages
Joseph Lubin, the founder of ConsenSys, is now advising the Xiongan government on how to use blockchainand provide software solutions, according to a ConsenSys statement on a memorandum of understanding (MoU) between both parties signed in Beijing on Monday, July 23rd.
As a new city developing from scratch, it will gain overall development and advanced technologies from the blockchain. Meanwhile, blockchain technology will play an important role in funds supervision, houses compensation, resources allocation, data sourcing, information, and data security.
Walmart to use blockchain technology to procure farm produce in UP
According to Business-standard, global retail major Walmart intends to use the cutting edge blockchain technology in the procurement of farms and agricultural produce in Uttar Pradesh. Walmart India’s president and CEO, Krish Iyer, told Business Standard that blockchain architecture would help in the validation of transactions and create more efficient delivery management operations.
By using the powerful encryption capabilities and smart contract of distributed ledger technology, collaboration in the retail industry can be effectively improved and develop more trust in production, processing, transportation, distribution, and sales throughout the implementation of a blockchain.
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