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BTC Death-Cross blues, Friday metrics watch

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Satoshi&Co Daily Crypto Newsletter

October 18 · Issue #242 · View online
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Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website

There is a lot of chatter about a BTC death-cross pattern signalling a bottom to the current BTC bear run around $7430. There seems to be strong bearish sentiment for the near-term but bulls are hoping for a breakout once price can somehow creep back to $8820, which does look like some distance away at the moment. Additionally, it might be worthwhile to consider the selling pressure due to year-end tax-loss harvesting in the US retail market.
Bank of Canada Digital Currency
Canada is the latest country that is getting on-board the CBDC bandwagon. The Bank of Canada is considering launching a digital currency that would help it combat the “direct threat” of cryptocurrencies and collect more information on how people spend their money.
The idea is to let both fiat and digital sovereign Canadian dollars co-exist initially and then slowly phase out the fiat version of the currency and going fully digital. The main purpose of a digital currency as expressed by the regulators is to better track the spending of individuals and stave off the pressures from non-sovereign digital currencies such as BTC, ETH, etc. 
Over the past one year, we have seen both corporations and nation states express strong intent to launch crypto versions of fiat currencies as well as new stablecoins owned and controlled by centralized entities such as JPMorgan.
Libra; green shoots of optimism
The ECB director’s recent comments on Libra has come as welcome relief to the project amidst a constant stream of negative press over the past few months. The ban on Libra in Europe was looking like a realistic possibility following recent events, but ECB director Benoit Coeure claimed that the ECB had no plans to ban Libra or other stablecoins. However, he also added that the ECB expects projects to adhere to the highest standards of regulation.
Coeure’s comments on Libra and stablecoins definitely go some way towards reassuring concerns around regulatory clarity, but it is still too early to say if these projects will actually get an unqualified green signal from the rank and file of regulators around the world. 
With uncertainty around regulatory status, the project is more than likely to push its target launch date back from June 2020. 
On to our Friday metrics…
Ethereum Locked in DeFi
MakerDAO still accounts for a lion’s share of ETH locked up in collateral, with more than 1.53 million of ETH locked up. Augur and Uniswap showed a strong w/w growth of 10% and 5% respectively in ETH locked up, while Compound and Maker remained flat w/w.
Lightning Network Growth:
Capacity per channel was flat w/w. The total number of nodes increased by 1%, and the total number of channels was flat w/w.
(For reference, some previous articles on LN, here).
DEX Tracker:
Trading volumes on DEXs have increased on a w/w basis, with the average daily trading volume averaging 35k ETH for this week. IDEX remains the biggest DEX in terms of trading volume and DAI is the highest traded cryptocurrency on DEXs.
(For reference, some previous articles on DEXs, here and here).
Crypto Loans Tracker:
Compound Loans:
Total loans issued on Compound for the last week stands at approx. $1.9 million for the week, a steep decrease from $5.2 million in the previous week. WETH is the most borrowed cryptocurrency on Compound followed by DAI and BAT.
dYdX Loans:
Total loans issued on dYdX for the last week stands at approx. $5.5M for the week, a 70% increase from $14M last week. DAI is the most borrowed cryptocurrency on Compound followed by WETH and USDC.
MakerDAO Loans:
DAI loans issued on MakerDAO for this week stand at ~$2.0M, a 50% decrease from $4.2M last week. The total outstanding DAI debt currently stands at ~$86 million.
(For reference, some previous articles on MakerDao, here and here).
You can also check out last week’s Metrics Watch here.
Meanwhile in Crypto Wonderland....
“Cardano To Partner With New Balance”
Proving the origin and authenticity of retail products has often been proposed as one of the key use cases of blockchain, but it was largely the turf of companies like VeChain and recently, IBM. Cardano is now jumping into this field with both feet through a collaboration with New Balance, the athletic wear and sneaker brand. Together they’ve developed New Balance Realchain, a new initiative that uses Cardano’s blockchain to confirm the authenticity of a select model of shoes. Complete with a landing page and app, Realchain uses a physical card with an internal chip that can be scanned with a phone, confirming that the New Balance footwear is indeed genuine.
“Tether Considering An Algorithmic Stablecoin”
Stablecoin provider Tether is considering creating an algorithmic alternative to its popular USDT token – possibly allowing traders to use cryptocurrency as collateral – as a means to provide another route to issue and trade USD-pegged assets. Paolo Ardoino, CTO of Tether and affiliated exchange Bitfinex, told Crypto Briefing the company was researching a new algorithmic stablecoin, possibly to be known as the ‘USDTX’. Although details are scarce, ‘USDTX’ could enable traders access to a store of value through leveraging their cryptocurrency holdings, if Tether goes ahead with the project.
“Nasdaq Lists AI-powered Crypto Index”
The world’s second-largest stock exchange, Nasdaq, has listed the AI-powered CIX100 index created by crypto data provider Cryptoindex. The news was revealed in a press release shared with Cointelegraph on Oct. 15. CIX100 is a crypto market benchmark that analyzes uses a neural network algorithm to analyze data for the top 100 cryptocurrencies, taking into account over 200 factors. Reportedly designed to exclude coins with fake volumes and rankings, the “human-free” tool targets both industry newcomers and professional investors. According to the press release, the data is derived from the nine largest cryptocurrency exchanges globally and factors in the results of millions of trades alongside news releases and social media data.
“eToro Launches A Crypto Portfolio Based On Social Sentiment”
eToro, the popular cryptocurrency trading website, is partnering with The TIE, a cryptocurrency information services firm, to implement a Twitter sentiments trading portfolio, which lists Dash as its largest position. The announcement discusses how the TIE-LongOnly CopyPortfolio leverages social Twitter sentiment, both positive and negative, as a significant indicator to compensate for the fact that most cryptocurrency fundamentals are still maturing and thus do not have revenue, dividends or debt.
Crypto Twitter Pick
Willy Woo
Bitcoin has already reached 40% of the life expectancy of the average fiat currency (27yrs). The most successful fiat currency has lost 99.5% of its value.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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