Jul 17, 2018

13 min read

TokenInsight — Weekly Report 7/7–7/13

TokenInsight Market Trends

During the period from July 8 to July 13, the average TI index reflecting the overall performance of the blockchain industry was 740.33 points and decreased by 15.57 points(-2.06%), with a maximum of 789.56 points and a minimum of 681.65 points. Compared to last week, the TI index fell by 6.81%.

During the period from July 8 to July 13, the average TIG index reflecting the overall performance of the blockchain industry was 766.84 points and decreased by 18.78 points(-2.39%), with a maximum of 836.65 points and a minimum of 689.58 points. Compared to last week, the TIG index decreased by 9.73%.

On July 7 ,8 and 12, the daily continuously compounded rate of return of BTC and ETH Index was significantly higher than that of TI. On July 9 and 13, 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 10 and July 11.

In the background of the overall poor market performance, 1374 currencies in the market have fallen more than 80%, the average weekly yield is -8.62% (GET, anabnormal value), and the medianis -10.46%. The top three currencies that gained its growth are GIM（765.72%）,MOTO（220.34%）,WBB（195.5%）while the top three currencies experienced decreasing trends are BUN（-79.22%）, ESC（-75.87%）, VTR（-70.90%）.

From July 7th to July 13th, the average price of BTC was $6,495.29. This week, BTC fell to its lowest point to $6,085.89 on July 13th around 7:00am and peaked at $6,809.36 on July 8th at 7:00am. In total, the price of BTC decreased this week by 4.54%, compared to this same period last week.

From July 7th to July 13th, the average price of ETH was $457.28. This week, ETH fell to its lowest point to $418.33 on July 13th around 7:00am and peaked at $494.93 on July 8th at 23:00pm. In total, the price of ETH decreased this week by 6.27% compared to this same period last week.

From July 7th to July 13th, the average price of EOS was $7.82. This week, EOS fell to its lowest point to $6.56 on July 12nd around 19:00pm and peaked at $8.99 on July 8th at 8:00am. In total, the price of EOS decreased this week by 17.27% compared to this same period last week.

From July 7th to July 13th, the average price of ETC was $17.34. This week, ETC fell to its lowest point to $15.71 on July 11st around 13:00pm and peaked at $18.97 on July 8th at 8:00am. In total, the price of ETC decreased this week by 7.41% compared to this same period last week.

From July 7th to July 13th, the average price of XRP was $0.46. This week, XRP fell to its lowest point to $0.42 on July 13rd around 7:00am and peaked at $0.49 on July 8th at 23:00pm. In total, the price of XRP decreased this week by 6.77% compared to this same period last week.

From July 7th to July 13th, the average price of BCH was $719.41. This week, BCH fell to its lowest point to $663.24 on July 13rd around 7:00am and peaked at $781.08 on July 8th at 8am. In total, the price of BCH decreased this week by 3.37% compared to this same period last week.

TokenInsight Analysis

In this week, the major cryptocurrencies experienced decreasing trend. The maximum decreasing of price is EOS(-17.27%), which is mainly because of the repeated vocalization of the EOS founder BM and the withdrawal of the telegraph group caused community unrest during the week. At the same time, the price of EOS and RAM increased because of the rise of application and development cost.

Token Industry Sector Analysis

According to TokenInsight’sindustry classification for tokens, currently only Pegged & Backed has enjoyed positive returns this week, accounting for 4.76% of the overall 21 token industry sectors. The top 3 gainers this week were pegged & backed (+2.56%), payment currency (-4.85%), and telecommunications (－6.64%), while the top 3 losers were shared economy (-26.54%), prediction (-15.83%), and health & medical (-15.66%).

Among major cryptocurrency industries, payment currencies BTC and XRP show relatively stable performance(-4.85%, the second gainer); ETC (IOT sector), ETH (general platform), EOS (general platform) all experienced significant decreases, placing this week’s sectors at 5th and 6th (-6.98%, -8.59%), but their market performances still rank in the middle upper level among all industries.

TokenInsight Week Indicators

Turnover Ratio

Turnover Ratio= current trade volume/ current market value

The turnover ratio is a measurement of token liquidity calculated by dividing total trading volume over a period by the total market value for that same period. The higher the turnover ratio, the more frequently traded a token is. This points to a clear indication of higher trading activity.

From July 7th to July 13th, the market turnover ratio decreased by 24%. By July 13th, it was approximately 4.56%. ETC and EOS enjoyed a higher turnover ratio than that of the market, being respectively 3.14 and 2.08 times of the latter. The turnover ratio of BTC, ETH, and XRP were all lower than the market, indicating a relatively low level of activity.

TIPV Ratio

TIPV ratio= Current Market Value / Current Trading Volume

A significant negative correlation can be seen between the TIPV ratio and the closing price of cryptocurrencies throughout different industries. This follows a similar association to the traditional P/E ratio seen in finance. Being, the lower the TIPV ratio, the higher the potential profitability of a cryptocurrency.

From July 7th to July 13th, the market TIPV ratio increased by 31.59% to 21.94 by July 13rd. The TIPV ratio of XRP, ETH and BTC are higher than the market, among which the TIPV ratio of XRP is 3.98 times of the market, indicating a low potential yield.

Sharpe Ratio

Sharpe ratio =(r- rf )/σ

where r is the asset return, rf is the risk free rate, σ is the standard deviation of the asset excess return.

The Sharpe ratio is a measure of an investment’s excess return, above the risk-free rate, per unit of standard deviation. It is calculated by taking the return of the investment, subtracting the risk-free rate, and dividing this result by the investment’s standard deviation. The higher a Sharpe ratio is, the higher potential for returns.

From July 7th to July 13th, the Sharpe Ratio of all 5 tokens featured showed negative results. EOS experienced the largest drop of -33.82% this week compared to the initial 51.77%, and XRP fell to -50.08% from 31.61%. The matching degree of risk and return was low and investment efficiency dropped sharply

The Number of GithubCommits

Compared to last week, the ranking of SHOW rose from 3rd place to 1st overall on GithubCommits by 29%. ELF ranked at 6th last week and rose to the 2nd, which the number of Github Commits decreased by 10%. Although both SHOW and ZSC have been ranked two positions better, the number of RDN and ZIL GithubCommits decreased by 37% and 8% respectively. ELF and ZRX dropped by 62% and 73% repectively. Other projects are newcomers to this week.

Current Events

International Policies

South Korea Loosen Cryptocurrency Rules, Regulator Signal Change

South Korean new named Financial Supervisory Services (FSS) leader, Yoon Suk-heun said he would consider revising cryptocurrency regulations.FSS plans to loosen restrictions on cryptocurrencies based on efforts by G20 to create uniform regulations.Where the FSC inspects, the FSS studies and supervises financial institutions under FSC’s oversight.

However, South Korea’s attitude towards ryptocurrency varies. Previously, South Korean has banned ICOs completely and levied heavy tax on exchanges. In addition, Bitumb and Upbit’s hackers list was exposed to the public in this same week, which makes it hard to measure the tighteness of policies. South Korea’s parliament will be held from July13 to July 26, focusing on the legislation of cryptocurrency. The future of South Korea’s attitude towards ryptocurrency remains to be seen.

IRS and ATO launches international initiative to hunt cryptocurrency tax fraudsters

The Internal Revenue Service (IRS) Large Business and International (LB&I) Division announced the identification and selection of five new campaigns, stating that virtual currency is property for federal tax purposes.Australian Tax Office has vowed to track down Australians hiding their cryptocurrency profits offshore by using ramped up data-matching services that will also target unexplained assets and wealth.

Because of cryptocurrency’s anonymity and decentration, supervisory departments has paid much attention to tax issues. After J5 promising to make integrated efforts to crack down on cyber crime, cryptocurrency fraud and money laundering, US and Australian tax office take quick actions, which shows supervisory determination.

National Policies

The two-year research on cryptocurrency supervisory proposed five basic policies.

Cryptocurrency and Monetary Digital Assets Operation Supervision Group, formed by NDRC, Peking University and other units, proposed five basic policies targeting cryptocurrency after two years’ joint research:

Absolutely abandon anarchism tendency in cryptocurrency trend.
Be opposite to “anomity”, pursuit credible and secure exchange based on reliable identity.
Be opposite to “anomity”, pursuit credible and secure exchange based on reliable identity.
Issuing and circulating cryptocurrency should correspond with industry development.
Cryptocurrency’s effective operation needs a global unitive information infrsustructure.

China’s supervision of cryptocurrency is still at exploration stage. It’s believed that under the leadership of these five policies, the Centre will introduce corresponding laws and rules to rectify the market confusion and maintain the market order.

With Fujian Province’s solid IT industry foundation, Pingtan preferentially forges cross-strait blockchain city.

Recently, Pingtan Comprehensive Experimental Management Committee said that they’ll take advantage of Taiwan’s location, Fujian Povince’s solid IT industry foundation and human resources to develop cross-straits blockchain technology, aiming at forging Pingtan as the blockchain connection of both sides of strait.

Pingtan’s development position mainly depends on geographical advantage of Taiwan. Pingtan will introduce preferential policy for blockchain companies based on mainland China or Taiwan, in order to establish the biggest blockchain data centre, blockchain industry incubation centre, blockchain talents cultivation centre and high technology research centre.

Giant Layout

Jingdong issues Anti-fake retrospect unity chain in Aug, Smart Treasured Chain opens for testing.

Jingdongannounced that global anti-fake retrospect unity’s main blockchain will be issued at the beginning of Aug. BaaS platform do the deployment and protection. Smart Treasured Chain takes the leading to opening for testing, supporting Farbic, Etherum and so on mainstream basic chain.

Jingdong’s blockchain anti-counterfeiting connection point realizes the data of supply, produce, transport and sales. This platform access more than 400 brands, establishing a model for the application of blockchain anti-counterfeiting.

ICBC launches “seven innovation labs” such as blockchain, plans to use blockchain patents to accelerate asset transactions

ICBC data centre (Beijing) export Dun Hongcheng said that ICBC has launched “Seven Innovation Labs” such as Internet, Big Data, Artificial Intelligence and Blockchain to achieve transparent operation of poverty alleviation projects and approval of funds. At the same time, ICBC is still applying for blockchain patents, specializing in financial asset transactions, building distributed networks, and improving the liquidity of financial assets.

As the largest bank in the world, ICBC’s financial technology layout undoubtlessly represents the transformation intention of the entire traditional banking industry. According to the two financial industry reports of BCG, the digital transformation of the global banking industry is imperative, and blockchain technology is of great benefit to simplifying business processes and improving the efficiency of capital operation.

Ant Financial seeks more blockchain applications, and will implement cashless payments in emerging markets in the next five years.

Ant Financial Services deems that the mobile wallet application will become the next major technology trend in emerging markets in South America and Africa.

As a pioneer in the field of microfinance in China, Ant Financial Services has deep understands of the blockchain’s inability to tamper with, decentralization and anti-monopoly advantages. This actions show that blockchain technology is a powerful guarantee for cashless payments, and the promotion of cashless payments in social unrest countries will be smoother.

Emergencies

Fcoin patterns frequently in order to stay FT in position. It’s difficult to stop the return of value.

During this week, the Fcoin Exchange entered the second stage of the mining revenue multiplication plan, and the proportion of rebatome distribution will be renewed but not tradeable.

Fcoin patterns frequently in order to stay FT in position and stabilize current FT priome distribution will be renewed but not tradeable.

Fcoin patterns frequently in order to stay FT in position and stabilize current FT pritransaction’s heats goes down, the model cannot be maintained, and the return of value becomes inevitable.

SlowMist disclosed the details of Ethereum tokens“Fake Recharge”, affecting a wide range of objects. transaction’s heats goes down, the model cannot be maintained, and the return of value becomes inevitable.

SlowMist disclosed the details of Ethereum tokens“Fake Recharge”, affecting a wide range of objects.

SlowMist Technology disclosed the details of the “fake recharge” loophole of the Ethereum token, and the impact objects included at least the relevant centralized exchanges, centralized wallets, and token contracts. There are at least 3,619 “fake recharge” vulnerabilities in a single-token currency contract, many of which are well-known tokens. In addition to judging whether the transaction is successful, the slow fog recommendation should also determine whether the balance in the refilled wallet address is accurately increased.

In fact, since June 28, SlowMist Technology has followed the “fake recharge” loophole incident and analyzed the hidden dangers of well-known public chains including USDT and ETH. The consequences of ETH token are more serious, and we hope that users can stay alert.

PeckShield, TokenPocket burst high-risk EOS account warning, secret key hazard may recruit “Rainbow” attack

Blockchain security company PeckShield and TokenPocket issued high-risk EOS account warnings, and some EOS’s active keys have serious hidden dangers. The root of the problem is that some key generation tools allow users to use weaker mnemonic combinations. The secret key generated by this method is easy to attract a “rainbow” attack and the account is stolen.

Secret key is the last line to protect digital assets. Don’t reduce the encryption strength for temporary convenience. The loss of strength cannot be compensated by the simple stacking of weak codes.

Both Coinpark and Bancor are rumored stolen. The sound of refuting the rumor follows.

On July 9 and July 10, both Coinpark and Bancor are rumored to be stolen, which involves 1.91 million BTCs and 25,000 ETHs. Since then, the head of Bibox China, Zhen Lei said that there’s no such announcement in CoinPark Official website and Bancor website resumed operation within one day, stating that no users’ wallet address was stolen.

Relating to last week’s, stolen events occurred frequently in the exchange recently. We remind users that some of the exchange’s technical means need to be verified. When chasing the high return, we should also pay attention to risk control.

Cryptocurrency creates more means of circulation. Progress in many aspects including literature and sports.

On July 10, Lynx Art Collection, an online gallery called, opens digital currency payments and sales revenue increased by 427%. On July 11, NBA Dallas Lone Ranger owner Mark Cuban said that the team’s next season ticketing Sales support BTC, ETH and CMT three digital currency payments.

Digital currency can be directly used to purchase literary works and team tickets, sufficiently indicating the enhancement of the digital currency’s circulation functions. In the future, digital currency can serve as a trading medium for more goods and services, and provide convenience for consumers.

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