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Developer Ecosystems - the true metric of blockchain value

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Satoshi&Co Daily Crypto Newsletter

August 22 · Issue #224 · View online
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As important as marketcaps are to measure the success of a company or a project, they are a flawed measure of success in the long-run.
The use of marketcap as a sole yardstick for success leads to fallible conclusions, even more so in the highly volatile crypto world where 80% drawdowns are normal. Organic indicators that are immune to the whims of markets driven by greed and fear are better at gauging the overall health of crypto. One such indicator is developer activity; developer activity is a great proxy for the level and pace of innovation in a still nascent technological space.  
Electric Capital recently released a report on the state of developer activity in the crypto ecosystem and the underlying trends paint a positive picture for the future of cryptocurrencies. Despite the fall in the total number of developers in the past one year (including full-time, part-time and one-time) the total number of full-time developers has actually shown a meaningful growth of 13% over the same year. 
Ethereum’s developer community dwarfs that of every other blockchain project in size, with close to 1200 monthly active developers in the Ethereum ecosystem, which is at least 4x more than the next biggest ecosystem. Ethereum is however still some distance away from its stated goal of becoming a global computer for decentralized applications, and Ethereum Killers come and go with no visible effect on the ETH ecosystem. BTC, however has already cemented its place as a global censorship-resistant Store of Value (SoV).    
Meanwhile in Crypto Wonderland....
“Low-quality Crypto Exchanges Account For More Than 60% In Trading Volumes”
On Wednesday, CryptoCompare published a report on crypto exchange’s activity in July. According to the research, exchanges with lower ratings accounted for about two-thirds of the trading volume last month. This may be due to the lighter know-you-customer (KYC) verification procedures, if existent at all. The rating is based on CryptoCompare’s proprietary exchange benchmark grading. It rates platforms based on their jurisdiction, regulatory compliance, data provision quality, trade surveillance, and market quality, among others. Thus, exchanges get a double-A for the best score and an F for the poorest service. In July, D and E rated providers accounted for a combined 64% of the total trading volume. Those rate with AA and A accounted for a combined 25%.
“US DoT Cracking Down On Crypto Wallets Of Drug Operators”
The United States Department of the Treasury has added multiple cryptocurrency addresses to its Specially Designated Nationals (SDN) list under the Foreign Narcotics Kingpin Designation Act, also known as the Kingpin Act. These addresses, and the individuals associated with them, have been deemed to be associated with foreign narcotics operators. The Treasury updated its SDN list on Aug. 21. The three alleged narcotic operators associated with these addresses are Chinese citizens Xiaobing Yan, Fujing Zheng and Guanghua Zheng. The three individuals all have associated Bitcoin (BTC) addresses mentioned on the SDN list, and Guanghua Zheng additionally has a Litecoin (LTC) address.
“Ukraine Law-enforcement Uncovers Illegal Miners”
Ukraine’s top law-enforcement and counterintelligence agency uncovered crypto mining equipment on site at a nuclear power plant. According to local media reports, the Security Service of Ukraine (SBU) confiscated six Radeon RX 470 GPU video cards, a motherboard, power supplies and extension cords, a USB and hard drive, and cooling units installed in the South Ukrainian Nuclear Power Plant on July 10. All of the equipment was located in a single office, No. 104, in the administrative wing separate from the power facility, from the state-owned Energoatom enterprise. The power plant is registered as a state secret and outside computer equipment is not authorized to enter the property.
“Coincheck To Launch An IEO Platform”
Japanese cryptocurrency exchange Coincheck, which suffered a $530 million hack last year, is considering launching an initial exchange offering (IEO) platform to help firms raise funds via utility tokens. IEO, as a form of raising funds, is gaining attention, Coincheck said Thursday, adding that it will target companies and projects that already have content and want to grow their business and those who have not raised funds via tokens so far. The exchange, however, stressed that it will only accept those projects who use utility tokens, and not security tokens that are subject to the Financial Instruments and Exchange Act of Japan.
Crypto Twitter Pick
Willy Woo
After all the shitcoin carnage, alts may be heading into a region of support. Top line is Alt Cap to BTC Cap Ratio (an alternative view to dominance). Bottom line is the ratio of Alt market volume to BTC volume at the exchanges.
Arianna Simpson
1/ The general crypto narrative seems to be drifting back to bitcoin maximalism, so I wanted to share a few thoughts on bitcoin relative to the rest of the crypto market:
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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Arianna Simpson
1/ The general crypto narrative seems to be drifting back to bitcoin maximalism, so I wanted to share a few thoughts on bitcoin relative to the rest of the crypto market:
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