TokenInsight—Weekly Report 8/4–8/10
TrendReview
TI Index
During the period from August 4th to August 10th, the average TI index reflecting the overall performance of the blockchain industry was 704.42 points and decreased by 111.15 points(-13.63%), with a maximum of 773.69 points( at August 4th 2 am) and a minimum of 622.17 points( at August 9th 2am). Compared to last week, the TI index declined by 15.30%.
TIG Index
During the period from August 4th to August 10th, the average TIG index reflecting the overall performance of the blockchain industry was 642.20 points and decreased by 97.91 points(-13.23%), with a maximum of 693.53 points and a minimum of 565.54 points. Compared to last week,the TIG index declined by 14.45%.
Daily Continuously Compounded Rate of Return
On August 3rdand 6th, the daily continuously compounded rate of return of TI Index was higher than that of BTC but lower than ETH index. On August 7th and August 9th, the daily continuously compounded rate of return of TI index was higher than that of ETH and lower than BTC, but it was higher than BTC and ETH on August 5th. On August 8th and 10th, the daily continuously compounded rate of return of TI Index was lower than ETH and BTC at the same time.
From August 4th to August 10th, TBTC showed a downward trend. The average price of BTC was $6,842.04, decreasing$1054.86 (-13.36%) from last week. BTC peaked at $7,537.01 on August 4th around 1:00amand fell to its lowest point to $6,137.23 on August 9th at 2:00am. In total, the price of BTC decreased this week by 13.64%, compared to this same period last week.
This week, the average price of ETH was $390.64. ETH peaked at $419.62 on August 4th at 2:00am, and fell to its lowest point to $348.57 on August 9th around 12:00am. In total, the price of ETH decreased this week by 12.99% compared to this same period last week.
From August 4th to August 10th, the average price of EOS was $6.55. EOS peaked at $7.30 on August 4th at 10:00am and fell to its lowest point to $5.35 on August 9th around 12:00am. In total, the price of EOS decreased this week by 22.35% compared to this same period last week.
From August 4th to August 10th, the average price of ETC was $16.56. ETC peaked at $20.97 on August 7th at 10:00am and fell to its lowest point to $14.36 on August 9th around 9:00pm. In total, the price of ETC was increased this week by 2.30% compared to this same period last week.
From August 4th to August 10th, the average price of ETC was $0.78. ETC peaked at $1.02 on August 5th at 3:00pm and fell to its lowest point to $0.56 on August 9th around 15:00pm. In total, the price of ETC decreased this week by 34.68% compared to this same period last week.
From August 4th to August 10th, the average price of BCH was $665.11. BVH peaked at $736.17 on August 4th at 10:00am and fell to its lowest point to$565.72 on August 9th around 12:00am. In total, the price of ETC decreased this week by 17.69% compared to this same period last week.
According to TokenInsight’s industry classification for tokens, currently 4 token industry sectors have enjoyed positive returns this week, accounting for less than 20% of the overall 21 token industry sectors. The top 3 gainers this week were Supply chain (+30.14%), Internet of Things (+22.37%), Data storage (+14.40%), while the top 3 losers were Sharing economy (-38.27%), Medical health (-37.51%), Anchoring and reserves (-23.23%).
Among major cryptocurrency industries, the market performance of BTC and BCH in the payment currency category and the common platform category in which ETH and EOS are located enjoyed a above-average performance(-11.13%，-12.54%, the 9th and 11th gainer); MIOTA, ETC in Internet of Things industry’s gains this week rose sharply from last week. (+22.37%, the 2ndgainer)
Week Indicators
Turnover Ratio
From August 4th to August 10th, the market turnover ratio increased by 97.95%. By August 10th, it was approximately 6.30%. EOS and ETC enjoyed a higher turnover ratio than that of the market, being respectively 2.14 and 4.06 times of the latter. EOS’s turnover ratio was on the rise. Affected by the huge trading volume of 700 million on August 7th, the weekly average turnover ratio of ETC rose sharply. However, the turnover ratio of ETH,BTC and MIOTA were lower than that of the market, indicating a relatively low level of activity（being respectively 83%, 74% and 62%）.
TIPV Ratio
From August 4th to August 10th, the market TIPV ratio decreased by 49.48% to 15.88 by August 10th. The average weekly TIPV ratio of EOS and ETC were lower than the market (respectively 49% and 26%). However, MIOTA, BTC and ETH were all higher than the market, among which MIOTA experiencing a significant decline on August 7th.
Sharpe Ratio
From August 4th to August 10th, the overall sharpe ratio was stable this week. MIOTA was the only token with a decreasing sharpe ratio, from the initial -63% to -70%. The other 4 major tokens (BTC, EOS, ETH and ETC) enjoyed increasing yield, with ETC rising most from -16% to 3% while EOS rising least by 17.6%.
The Number of GithubCommits
Compared to last week, the absolute number of Github commits has increased this week. TRUE rose from 2ndplace to 1stoverall on Github commits by 9.86%. Meanwhile, RDN and SHOW have also respectively increased respectively by 154.00% and 14.95%. The rank of GXS dropped from 6thlast week to 7thwhile the number of commits has increased by 38.98% to 82 times. By comparison, ZSCranked at 5thlast week but has fallen to the 6th, whose number of Github commits also decreased by 3.41%.
Current Events
Emergencies
Number of Cryptocurrency ATMs Doubled with 5,000 Estimated to Be Put into Operation at the End of this Year
According to data released by Statista on August 6, the number of Bitcoin ATMs in 2017 has doubled and the upward trend is continuing. The data website Coinatmradar shows that about 9 new cryptocurrency ATMs are born every day. At this rate, about 5,000 cryptocurrency ATMs will be put into operation by the end of 2018.
The cryptocurrency ATM market is driven by cryptocurrency users, and some users want to circumvent central bank controls by cryptocurrencies. Currently, cryptocurrencies supported by the ATMs are quite limited, and some only support one altcoin besides Bitcoin. The rapid development of the cryptocurrency ATM industry will open up new channels for investors to trade.
ETH’s New Non-Coin Hard Fork Constantinople Approaching with Expectation to Update Its Value
The Ethereum network has been updated many times so far, and the current mainnet has implemented the first part of 3.0 Metropolis hard fork comprised of Byzentium. The second part Contantinopole, has being tested recently and is expected to be upgraded in October.
Although this upgrade is carried out in the form of hard fork, there is no conflict of consensus in the community, so there will be no new cryptocurrencies like BCH and ETC. According to developer Peter Szilagyi, this upgrade involves four Ethernet Improvement Protocools (EIPs), which can greatly improve network computing efficiency, reduce transaction costs, and alleviate the concerns caused by the current smart contract slowing down the network. The overall value of ETH is expected to be updated with the upgrade.
EOS Removing 4% New Tokens Award while RAM Expansion Still Calling for BPs to Vote
This week, EOS founder BM submitted an update in the smart contract code base, adding a hash table to remove 4% inflation paid to savings. When members of telegram official group asked about the RAM expansion plan, BM responded that it would depend on the voting results of BPs instead of personal opinion.
BM believes that the current token creation mechanism can bring nothing but a lot of idle EOS tokens, which is meaningless. The removal of the 4% new tokens award will make the EOS supply relatively decline, which will support its market price in the short term. The prudent expansion of RAM has caused subtle fluctuations in market expectations, but the trend of expansion will not change. As a result, cost reduction will eventually promote EOS prosperity.
Bitmain Officially Completing Its Pre-IPO Round while Cryptocurrency Wi-Fi Routers Driving Market Sentiment
On August 4th, Bitcoin officially completed its Pre-IPO round, receiving a total funding of 1 billion US dollars from Tencent, Softbank and CICC. On August 9, Bitmain announced on social media the launch of two cryptocurreny Wi-Fi routers, called Antrouter R3-DASH and Antrouter R3-SIA.
At the end of June, Bitmain had just completed the $12 billion valuation financing led by Sequoia. The company plans to submit the application to the Hong Kong Stock Exchange in September and be officially listed this year, with an estimated market value of $30–40 billion. Bitmain, known as the mining machine giant, is now launching a cryptocurrency Wi-Fi router, which is intended to lay out the entire mining industry chain, driving market sentiment and seeking higher valuations.
National Policies
Taiwan Trying to Rugulate Cryptocurrency with Anti-money Laundering and Serving Entities Being the Key
On August 6, according to the Taiwan News Agency, the Ministry of Justice of Taiwan will conduct an anti-money laundering assessment at the end of the year and propose to put cryptocurrency under regulation. On August 7, Jinlong Yang, head of Taiwan Monetary Policy Authority, also expressed support for the inclusion of cryptocurrencies in regulation.
Taiwan will accept the third round of assessment of the Asia-PacificGroup on Money Launderingin November. As cryptocurrencies such as Bitcoin may become one of the channels for money laundering, the Ministry of Justice of Taiwan has suggested Executive Yuan to regulate the cryptocurrency industry. When Yang deployed the work of the Taiwan Monetary Policy Authority, he emphasized that cryptocurrency should serve the entities.
First Blockchain National Standard Launch Meeting Held in Kunming to Standardize and Guide the Development of the Industry.
On August 1, the Blockchain National Standard Launch Meeting for the Reference Architecture was held by China Electronics Standardization Institutein Kunming. Experts from 34 domestic blockchain enterprises such as Ant Financial and ZhongAn were invited to participate. The meeting was mainly based on Blockchain Reference Architecture, the first group standard for domestic blockchain industry.
The standard provides support for organizations planning to use blockchain and DLT to select and use blockchain services or to build blockchain systems, and to help blockchain service providers. At the same time, the standard has become an important reference for ISO/AWI 23257 of ISO/TC 307, and has played a favorable role in China’s blockchain international standard competition.
International Policies
11 Financial Regulators and Related Organizations Collaborate to Create a ‘Global Sandbox’
The Financial Conduct Authority (FCA) has, in collaboration with 11 financial regulators and related organisations, on 7 August 2018 announced the creation of the Global Financial Innovation Network (GFIN). The publication states that they will build on the FCA’s proposal earlier this year to create a ‘global sandbox’ and supply with testing circumstances for financial cross-border solutions.
FCA also states that what people should focus on mainly lies in how global financial regulators collaborate on cross-border payments based on Distributed Technology Ledger (DTL) and how to regulate ICO. With the announcement, the alliance will seek public comment on the GFIN initiative, and the feedback will continue until October 14.
US SEC Postpones Decision on VanEck/SolidX Bitcoin ETF
On August 7th, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on the VanEck/SolidX Bitcoin ETF, according to an official document released by the Commission. The publication states that ETPs need to be regulated by the market. Historically, ETPs have met the “mature, important and regulated” market conditions.
After refusing the application of the Winklevoss brothers in July, the SEC retained the suspense of the VanEck-SolidX listing decision until September, triggering market panic. In the next two months, the SEC will make a final decision on the listing application of nine bitcoin ETFs. Bitcoin market will gradually meet regulatory requirements, and the ETF’s landing is only a matter of time.
Japan’s Financial Services Agency Set to Update Cryptocurrency Regulations in Speculation Countermeasure. Tokyo-based Virtual Currency Exchange Operator Hesitates for Purchasing Plan.
On August 9th, the country’s financial watchdog plans to impose stricter regulations on bitcoin and other cryptocurrencies, whoproposed to involve cryptocurrency exchanges under the jurisdiction of the Financial Instruments and Exchages Act (FIEA). That means the exchanges require to comply with laws currently applicable only to stockbrokers and securities firms.
On August 7th, A Hong Kong-based cryptocurrency company seeks to essentially take control of a China-linked business listed on the Tokyo Stock Exchange, which rings alarm bells at a bourse on Tokyo Stock Exchange. Because of insufficient protection for investors, Tokyo Stock Exchange always keeps a distance from the cryptocurrency.
Giant Layout
World Bank to Issue the First ‘Blockchain Bond’ and Raise about 100 Million Australian Dollars
OnThe World Bank has mandated the Commonwealth Bank of Australia (CBA) to arrange the financial industry’s first “blockchain bond.” The bond, which will be known as the Blockchain Offered New Debt Instrument — or more simply as the “Bondi” .Bondi will go on sale later this month and aims to raise about 100 million Australian dollars.
Investors have strong interests in the bonds. Both the World Bank and CBA said that the blockchain can reduce the settlement time of bonds from 5 days to 10 seconds, decrease transaction costs, achieve transparency of debt financing at the same time and greatly improve its regulatory supervision environment.
Goldman Sachs Considers Offering Cryptocurrency Custody Services to Reduce Hacker Attack Risks
On August, Goldman Sachs is reportedly considering a plan to offer custody for cryptocurrency funds. Its statesman said in response to customers’ interesst in various digital products, the company is exploring how to provide better services. The scope of digital asset allocation has not yet been defined, and there is no clear timetable for hosting services.
Since hiring Justin Schmidt as the head of the digital asset market this year, Goldman Sachs has been cautious about cryptocurrency transactions. The plan to test the hosting service undoubtedly released a positive signal. Banks holding cryptocurrencies on behalf of funds can reduce the risk of hacker attacks and pave the way for more investors in such assets.
Accenture Hardware Patent Seeks to Enhance Blockchain Security and Scalability
Professional services firm Accenturehas filed a patent which seeks to enhance the speed and security of transactions on blockchains using patented hardware. Besides accelerating the software processes the technology described in the patent titled‘Hardware Blockchain Acceleration’ will also improve the security of the applications supporting the transaction chains.
Accenture believes that the rapid development of communications and electronics has driven technology demand, but it has also triggered new security threats. Safe and efficient execution of complex transactions is not only a requirement for software processes and hardware systems, but also for PCs.
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