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DigixDAO: The Only Light in a Sea of Red

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DigixDao (DGD) advanced briskly on Saturday, confounding a broad downtrend in the cryptocurrency market that dragged most of the top-30 coins lower.

DGD Price Levels

DGD rose more than 22% on Saturday, reaching $390 per token, according to data provider CoinMarektCap. The cryptocurrency was up nearly 26% against bitcoin and more than 23% versus ether.

At current price levels, DGD has a market cap of $779 million based on a circulating supply of 2 million coins. That’s enough for 30th place among active cryptocurrencies in terms of overall market cap.

Trade volumes in the last 24 hours reached $77.3 million, with the vast majority of the trades being placed on Binance against bitcoin. Between bitcoin and Ethereum, Binance processed roughly 86% of the daily trade volume.

DGD has rebounded more than 83% from its recent swing low, but is still trading 14% below its all-time settlement high of $456.44 on Feb. 2.

Beating the Market

DigixDAO’s native coin has been rising gradually even as a week-long pullback in the crypto space shaved tens of billions of dollars off the collective market cap. This isn’t the first time DGD has outpaced the market. Three weeks ago, Hacked reported impressive gains for the cryptocurrency as virtually every other digital asset in the top-100 declined double digits.

At the time of writing, the total market cap of all cryptocurrencies was $430.5 billion, down 3.4% from the previous day and 6.7% from the intraday high of $461.6 billion.

Aside from DGD, Ethereum Classic was the only cryptocurrency in the top-30 to report gains on Saturday.

DAO Platform

As a Distributed Autonomous Organization (DAO), Digix was part of Ethereum’s first public crowdraise all the way back in 2016. The token raise launched in March of that year and reached its crowdfunding goal of $5.5 million in 12 hours.

DigixDAO is often referred to as a gold-backed cryptocurrency, but this only applies to its DGX token. The company operates two tokens, with DGX supposedly pegged to one gram of gold. Gold futures are up more than 15% year-to-date on a tumbling dollar and wavering risk sentiment.

Unlike most digital currency systems, the DAO protocol gives investors a voice in the company’s decision-making process. Depending on how the DAO is structured, investors can vote on how funds are deployed or which business proposals it entertains.

Ethereum founder Vitalik Buterin is planning to make DAOs central to future crowdraises. This will be accomplished by a new protocol called “DAICO,” or Decentralized Autonomous Organization Initial Coin Offering. Gaming platform The Abyss recently announced it will be the first company to utilize the DAICO model.

Through DAICO, companies can encode specific rules into their crowdfunding campaigns, such as KYC/AML requirements and investor approval for accessing project funds. The specifications behind DAICO were first laid out in January blog post penned by Buterin.

No other project has announced plans to utilize the DAICO model, although this may soon change as demand for transparency continues to grow.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 612 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Crypto Exchanges: Looking For Guaranteed Results

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The word guaranteed is never to be used anywhere investment advice is offered.  So please think of my use of the term as just one person’s opinion. But after doing some weekend reading, I think there should be a way to achieve extraordinary gains that are virtually assured for a very long time.

Back in the glory days of the dotcom period the wisdom of the time was simply stated: invest in the plumbing. That included names like Cisco and Intel.  These were the folks that facilitated high speed traffic on the Internet. Even after the dotcom bubble burst, the plumbers continued to rake in the dough.

Fast forward to 2018, why should we not follow the same logic? Please don’t ask why I didn’t ask this question long ago. Here is what caught my attention.

There is a new study out prepared by The Status Group that makes some incredible projections for the immediate future.  Here are their headline making forecasts.

  • We expect crypto trading volume growth of +50% through 2019, and a 9% CAGR through 2028
  • Crypto trading volume is set to overtake U.S. Corporate Debt trading volume this year, and is on track to be ~10% of U.S. Equity trading volume
  • We estimate exchange trading fee growth of 50%+ this year, from $2.1B last year to well over $3B in 2018
  • The top 20 exchanges account for over 75% of total crypto market trading volume
  • BTC is the base pair for ~1/3 of global crypto volume, USDT 22%, ETH 12%

Always Be Cautious of Forecasts

With no disrespect meant, are the forecasters at The Status Group really serious?  Well, 2019 isn’t that far off so we will know soon enough. But the point is, how do we get involved in the growth of trading rather than pure speculation on crypto prices?

Take the case of the two largest players: Bitmex and Binance.  Over the past 30 days, the two exchanges have traded over $125 billion in value.  That is just in the last month or $1.5 trillion annually. This is only the top two.  If the five largest were included, the monthly total rapidly approaches $200 billion.

Bitmex stands out from a recent article titled: Bitmex Co-Founder is the Youngest British Self-Made Billionaire. Brilliant ideas and hard work deserve and that is why Ben Delo, Samuel Reed and Arthur Hayes are billionaires. But try to buy into Bitmex, good luck.

But there is #2 Binance (BNB) whose token can be traded on the Binance exchange. According to ICOMarks, the market cap of BNB is just a little over $1.1 billion. Back in January, BNB reached $22 but has since tumbled to just $10 -marking a drop of roughly 60%.

Putting that into perspective, that is just a bit less than the average crypto has done this year. But before you doze off, consider this. Changpeng Zhao, BNB founder, just reported second quarter profits of $200 million.  That amounts to 2,757% over the $7.5 million earned in the first quarter.

In other words, BNB’s market cap is equal to just five times the profits in the first six months. If BNB were listed on the New York Stock Exchange and received an average valuation, it would sell for about 23 times earnings.  There may be many reasons why the value of BNB is so low but if it continues to generate such sizable profits, somebody is going to take notice.

As we noted, there are probably lots of reasons why the asset value has fallen nearly as much as the average crypto this year.  This is where I would love to hear from you. Just like back in the post dotcom days, the plumbing companies made the most money.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 106 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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STEEM Price Surges 31% Ahead of Steemit Velocity Hardfork

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The value of Steem (STEEM) surged over 31% on the afternoon of Monday, September 24th, as the team prepare to implement ‘Hardfork 20’ – codenamed Velocity – tomorrow on the 25th. The hardfork will make multiple changes to the blockchain that underpins the Steemit social media platform, and full details can be read on the official Steemit blog.

STEEM Price Jumps 31%

Whether the flurry of activity in STEEM markets can be interpreted as a sign of faith in the upcoming updates is up for debate. The STEEM price has been climbing steadily since September 12th since falling to the $0.65 range. Today’s peak of $1.12 puts STEEM on over 70% growth in the last twelve days, outpacing the majority of altcoins with the exception of recent headline-grabbers like XRP and Stellar.

On Monday afternoon the coin price surged 31%, climbing from a price of $0.852111. The majority of those gains came in less than an hour, between 16:00 and 16:30 UTC. The highest single concentration of trades comes in the form of STEEM/USDT on Huobi, while the rest of the market is shared predominantly between STEEM/BTC and STEEM/KRW.

KRW (Korean won) trades make up 33% of the day’s total, continuing the trend from the last few days where the majority of the market pump could be attributed to eastern markets, and KRW in particular.

Steemit Velocity Hardfork

The Steemit social media platform utilizes three currencies in its operation, including a perpetually dollar-pegged coin in the form of SBD, and an internal ‘weighting’ currency called Steem Power that denotes influence and cannot be quickly liquidated.

More details can be read on Steemit’s currencies here, but the point is that Steemit’s internal economy is a finely-tuned machine with lots of moving parts. The upcoming Velocity hardfork will further adjust those moving parts, addressing the community’s pooled funds, new user account creation, the percentage of a post’s payout to authors and curators, and much more. According to the Steemit blog:

“The changes in the Velocity Hardfork are dependent on the approval of a super-majority (17/21) of the witnesses voting in favor of the Hardfork.”

The team also released this short primer for new users and witnesses to the Steemit blockchain ahead of the hardfork on Tuesday, noting the decision-making process:

“Witnesses should review the changes in the hardfork release. If they agree with the changes, they should run the new version of Steem at their earliest convenience. By running the new version of Steem, they are casting their vote for the changes. By choosing not to run the new version of Steem they are casting their vote not to hardfork.”

Stay tuned for more developments tomorrow when the hardfork is implemented at 15:00 UTC.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 61 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Selling Pressure Hits Bitcoin, Altcoins Following Large Rally

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Cryptocurrencies declined across the board on Monday, as the market returned to a defensive posture following a $38 billion inflow over the past six days. Losses affected all major assets but were largely concentrated in altcoins and tokens.

Market Update

From a peak of around $230 billion on Friday, the cryptocurrency market cap has fallen back to $218.4 billion. The brisk selloff began around 00:00 UTC on Monday; the market would go on to lose roughly $8 billion over the span of six hours.

Trading volumes have held steady over the last 24 hours with $13.7 billion transacted on virtual currency exchanges.

All major assets were down on Monday, with XRP and Stellar XLM each declining more than 11%. Both currencies were the top performers last week. XRP is currently trading at $0.517 and XLM is sitting at $0.2556.

Ethereum slipped 5.1% to $232. Bitcoin cash was down 7.3% at 464. EOS, which was briefly overtaken by Stellar in the market cap rankings, declined 6.6% to $5.67.

Losses in bitcoin, the largest cryptocurrency by market cap, were more contained. BTC is down 2.1% over 24 hours to $6,607. Bitcoin’s price crossed the 50-day moving average on Friday and is currently testing that key level.

Pullback Expected

A pullback was expected for the leading altcoins after demonstrating spectacular growth over a short period. XRP posted a three-fold increase in price last week while Stellar XLM added a third to its value in roughly the same period. Cardano was also among the top performers a ADA began its long recovery from a 96% retracement.

Fundamentals were a major catalyst behind last week’s rally but appear to be absent from the recent reversal, reinforcing the view that technical re-positioning was largely responsible. Sharp corrections are common for cryptocurrencies after a large run-up in prices.

With the pullback, bitcoin’s share of the overall market has returned above 52%. Bitcoin’s dominance rate approached six-week lows on Sunday as altcoins and tokens outpaced the leading digital currency.

BTC trade volumes are holding above $4 billion, a figure that is generally consistent with rising prices. Bitcoin’s price action this week could be influenced by expiring CME futures contracts. The September futures contract is set to expire on Friday.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 612 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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